Article 9 and Lien-Related Legislation

Florida: Senate Bill 1312 (2022) was pre-filed on 12/20/2021 to add a new section to Part 6 of UCC Article 9 that would prohibit unlawful activities. The bill would make it unlawful for a person to cause a breach or violation of, or the refusal or failure to perform, a lawful contract or intentionally and unjustly interfere with or disrupt a business relationship. The bill would authorize an injured person to bring a civil cause of action for injunctive relief and specified damages; prohibiting causes of actions from being brought for specified contracts. The bill is pending introduction in the 2022 session.

Michigan: HB 4694, which would amend forms provisions of UCC Article 9, passed the Senate on 11/10/2021 and was signed by the governor on 11/22/2021. The bill replaces references to “correction statement” with “information statement” in non-uniform provisions of the state’s version of UCC § 9-520, which address fraudulent filing. The bill also clarifies that the forms acceptable under the state’s version of UCC § 9-521 are those promulgated by the American Law Institute and the Uniform Law Commission and adopted by the secretary of state. The new law took effect immediately.

Other Uniform Laws Legislation

No developments to report.

Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)

Washington: Senate Bill 5544 was pre-filed on 12/15/2021 to establish the Washington blockchain work group for the purpose of examining various potential applications for blockchain technology including, but not limited to, applications in computing, banking and other financial services, the real estate transaction process, health care, supply chain management, higher education, and public recordkeeping. Committee assignment will follow introduction in the 2022 session.

Ohio: The governor signed HB 177 on 11/30/2021, which will allow a governmental entity to utilize distributed ledger technology, including blockchain technology, in the exercise of its authority. The new law takes effect 90 days after it is filed with the secretary of state.

United States: House Bill 6006 was introduced on 11/17/2021 to define “Broker” for purposes of the Internal Revenue Code to include a person who effects trades or sales of digital assets in the ordinary course of business at the direction of its customers. The bill also requires such brokers to make certain reports to the IRS. The bill was assigned to the House Ways and Means Committee.

United States: Senate Bill 3249 was introduced on 11/18/2021 to revise the rules of construction applicable to information reporting requirements imposed on brokers with respect to digital assets. The bill was assigned to the Senate Finance Committee.

Business Organization Legislation

No developments to report.

Notary Legislation

No developments to report.

Real-Estate-Recording-Related Legislation

No developments to report.

Other Items/Legislation of Interest

No developments to report.

………………………..

Note that this update provides only a short summary of the listed bills, which are often lengthy and complex. It is not intended to include all potentially relevant provisions of each bill. For full details, please review the bill on the applicable state legislative web site.

Legislative Developments 12-22-21