Legislative Developments 2-12-2024

Legislative Developments 2-12-2024

Article 9 and lien-related legislation

Iowa: House Study Bill 688 and Senate Study Bill 3167 were introduced on 2.8.2024 to establish a central filing system for farm products under the federal Food Security Act. Similar measures were introduced in previous legislative sessions but did not pass out of committee.

Other uniform laws legislation (includes the 2022 Amendments to the UCC with UCC Article 12 – Controllable Electronic Records)

District of Columbia: Bill 5, which would enact the 2022 Amendments to the UCC, including UCC Article 12 – Controllable Electronic Records, passed the Council on 2.6.2024 and is awaiting action by the mayor.

Illinois: House Bill 5303 was introduced on 2.8.2024 to enact the 2022 Amendments to the UCC, including UCC Article 12 – Controllable Electronic Records, and related amendments.

Nebraska: Legislative Bill 94, which would enact the 2022 Amendments to the UCC, including Article 12 – Controllable Electronic Records and conforming amendments, passed the legislature on 2.8.2024 and is awaiting action by the governor.

South Dakota: House Bill 1163, which would enact the 2022 Amendments to the UCC, including UCC Article 12 – Controllable Electronic Records, and related amendments, passed the House on 2.5.2024 and is pending in the Senate. This bill adds a non-uniform definition for “central bank digital currency” and a non-uniform definition of “money” that states that “the term is not intended and cannot be construed to create or adopt a central bank digital currency.” These changes appear intended to address concerns that led to the governor vetoing a similar bill last year.

Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)

South Carolina: Senate Bill 1039 was introduced on 2.8.2024 to provide that (i) an individual shall not be restricted from using digital assets to pay for legal goods and services; (ii) that an individual shall not be restricted from digital asset mining; and (iii) exempt digital assets used as payment from capital gains tax.

Utah: House Bill 118, which would address private keys, passed the House on 2.5.2024. The bill would provide that a person may not be compelled to produce a private key or make a private key known to any other person in any civil, criminal, administrative, legislative, or other proceeding in the state that relates to a digital asset, digital identity, or other interest or right to which the private key provides access.

Business organization legislation

Georgia: House Bill 876, which would revise the incorporation process for banks and trust companies, passed the House on 2.6.2024 and was sent to the Senate.

Maryland: Senate Bill 954 was introduced on 2.2.2024 to require certain business entities to report beneficial ownership information to the state within 30 days of formation.

New Jersey: Assembly Bill 3435 was introduced on 2.1.2024 to require an application for development submitted by an organization to identify any beneficial owner holding at least 10% ownership in the organization.

Washington: Senate Bill 5786, which would make numerous changes to the Washington Business Corporations Act, passed the Senate on 2.7.2024.

Notary legislation

Mississippi: House Bill 847 was introduced on 2.2.2024 to clarify the maximum fee that a notary may charge and provide that a non-resident who is an employee or has a practice in the state is eligible to be commissioned as a notary.

Oregon: House Bill 4020 was introduced on 2.5.2024 to require an applicant for a commission as a notary public to complete a course of study offered by the secretary of state before taking the required examination, even if the applicant already holds a commission in Oregon.

South Dakota: Senate Bill 211, which would amend notary law to authorize and set the requirements for electronic and remote notarial acts, passed the Senate on 2.7.2024.

Virginia House Bill 986, which would increase the fee a notary may charge, passed the House on 2.8.2024. The bill would provide for an increase in the fee for taking and certifying the acknowledgment of any writing, or administering and certifying an oath, or certifying affidavits and depositions of witnesses, or certifying that a copy of a document from $5 to $10.

Virginia House Bill 1372, which would authorize the use of a knowledge-based authentication assessment to establish satisfactory evidence of identity if the system meets certain requirements, passed the House on 2.8.2024.

West Virginia: House Bill 5332, which would exempt certain existing commissioned notaries from the high school diploma requirement, passed the Senate on 2.2.2024. The governor signed the bill on 2.8.2024 and the new law will take effect 90 days after passage by the legislature.

Real estate recording-related legislation

Illinois: Senate Bill 3420 was introduced on 2.8.2024 to enact the Unfair Service Agreements Act, which would provide that a county recorder may refuse to record an unfair service agreement.

Kentucky: House Bill 488 was introduced on 2.7.2024 to provide detailed requirements for documents to be recorded with a county clerk. The bill also requires a statement on an affidavit of amendment to a recorded mortgage that the document was prepared by an attorney licensed in Kentucky.

Washington: Senate Bill 5840, which would require that to be recorded, a lease or memorandum of lease must have the lessee and lessor signatures acknowledged, passed the Senate on 2.2.2024.

Other items and legislation of interest

Indiana: Senate Bill 252, which would amend the requirements for publication of legal notices and the qualifications for a newspaper to publish legal notices, passed the Senate on 2.5.2024.

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Note that this update provides only a short summary of the listed bills, which are often lengthy and complex. It’s 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.