Article 9 and Lien-Related Legislation
Kentucky: House Bill 523 was introduced on 2/17/2022 to provide that a purchase-money mortgage or deed of trust granted by a purchaser shall have priority over a prior lien against the purchaser. Committee assignment is pending.
Minnesota: House Bill 3400 was introduced on 2/14/2022 and includes provisions to address fraudulent UCC filing. Section 11 of the bill includes provisions based on the hip-pocket amendments to UCC Article 9. The bill was assigned to the House Commerce Finance and Policy Committee. Two bills were introduced in 2021 with similar provisions but the fraudulent filing portion was stripped out of each bill in committee.
Other Uniform Laws Legislation
Alabama: Senate Bill 211 was introduced on 2/10/2022 to adopt the Uniform Certificate of Title for Vessels Act. The bill passed the Senate on 2/16/2022 and is now pending in the House State Government Committee.
Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)
Georgia: House Bill 1342 was introduced on 2/14/2022 to exempt the sale or use of electricity used in the commercial mining of digital assets from state sales and use tax. The bill was assigned to the House Ways and Means Committee.
Iowa: HSB 678, which was introduced last week as a study bill, has now been renumbered and introduced on 2/16/2022 as House Bill 2445. This bill would create new UCC Article 14, Controllable Electronic Records, which is based on the draft version of UCC Article 12 produced by the Uniform Law Commission and American Law institution project on UCC and Emerging Technologies. The bill is pending committee assignment in the House.
Iowa: HSB 679, which was introduced last week as a study bill, has now been renumbered and introduced on 2/16/2022 as House Bill 2443. This bill would provide that a record or signature shall not be denied legal effect because it is created or stored by means of distributed ledger technology or smart contract, as those terms are defined in the bill. The bill provides in a new code section that the ownership of the secure information remains with the person who provided the signature, not the distributed ledger technology owner, and repeals a similar provision. The bill is pending committee assignment in the House.
Iowa: SSB 3091, which was introduced earlier this month, has now been renumbered and introduced on 2/17/2022 as Senate Bill 2333. This bill is similar to HB 2445 and would create new UCC Article 14, Controllable Electronic Records, which is based on the draft version of UCC Article 12 produced by the Uniform Law Commission and American Law institution project on UCC and Emerging Technologies. Committee assignment is pending.
Maryland. House Bill 1204 was introduced on 2/11/2022 to establish the Decentralized Financial Regulatory Sandbox Program to facilitate limited access to the financial market in the State in order to test certain products or services without certain regulation. The products or services covered are those that incorporate new or emerging technology, including blockchain, to address a problem, provide a benefit or otherwise offer a product or service. The bill was assigned to the House Economic Matters Committee.
New York: SB 1800 (2021), which would amend the economic development law by providing for the creation and development of distributed ledger technology and business entities, passed the Senate on 2/15/2022. The bill was then assigned to the Assembly Ways and Means Committee.
New York: SB 1801 (2021), which would amend state technology law, passed the Senate on 2/14/2022 and was assigned to the Assembly Governmental Operations Committee. This bill would add definitions of “blockchain technology” and “smart contracts” and provide that a signature obtained through blockchain technology is an electronic signature and that a record or smart contract obtained through blockchain technology is an electronic record.
United States: House Bill 6597 was introduced on 2/3/2022 to require that the Small Business Administration conduct a study on the use of blockchain for consumer protection purposes. The bill was assigned to the House Small Business Committee.
Utah: HB 335, which would create the Blockchain and Digital Innovation Task Force, passed the House on 2/17/2022. If enacted, the task force would develop knowledge and expertise regarding blockchain and related technologies. The task force would then make policy recommendations to the legislature. Committee assignment is pending in the Senate.
Virginia: HB 80, which would create the Healthcare Regulatory Sandbox program for innovative use of new and emerging technology, including blockchain, passed the House on 2/14/2022. The bill was assigned to the Senate Education and Health Committee.
Washington: SB 5544, which would establish the Washington blockchain work group for the purpose of examining various potential applications for blockchain technology, passed the Senate on 2/10/2022. The scope of the work group’s inquiry includes, but is 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. The bill was assigned to the House Community and Economic Development Committee.
Wyoming: Senate Bill 68 was pre-filed on 2/11/2022 to amend provisions related to decentralized autonomous organizations (DAOs). The bill updates the DAO law enacted last year by (i) amending definitions; (ii) making technical corrections; (iii) amending the obligations of members and dissociated members; (iv) amending factors for dissolution of a decentralized autonomous organization; and (v) repealing definitions and provisions related to DAOs. Committee assignment is pending.
Business Organization Legislation
California: Senate Bill 1202 was introduced on 2/17/2022 to amend laws related to business entity records filed with the secretary of state. The bill would (i) allow the secretary of state to cancel the filing of certain business records, including articles and conversions, for dishonored payment of the filing fee by check or other remittance with 90 day’s written notice; (ii) prohibit the name of a limited partnership from including the words “insurer” or “insurance company” or any other words suggesting that it is in the business of issuing policies of insurance and assuming insurance risks; (iii) provide that with respect to certain entities a certificate of merger or the agreement of merger has the effect of the filing of a notice of termination for each disappearing entity; and (iv) make other conforming changes to the business entity laws. Committee assignment is pending.
Notary Legislation
Massachusetts: The governor signed HB 4345 on 2/12/2022 to temporarily provide for remote notarization of physical documents. The bill has retroactive effect to 12/15/2021 and permits remote notarization until 7/15/2022.
Michigan: House Bill 5759 was introduced on 2/16/2022 to amend the Michigan Law on Notarial Acts to revise provisions applicable to electronic and remote notary technology. The bill was assigned to the House Judiciary Committee.
New Mexico: HB 180, which would repeal a portion of the Revised Uniform Law on Notarial Acts, passed the Senate on 2/15/2022. The bill would repeal a provision that permits the public to inspect a notary journal or audiovisual recording related to a specific notarial act under the state’s Inspection of Public Records Act. The bill is now pending delivery to the governor.
Real-Estate-Recording-Related Legislation
Georgia: HB 974, which would have required that all deeds, mortgages and liens of all kinds be electronically filed with the clerk of the superior court, passed the House Judiciary Committee as amended by a substitute bill on 2/11/2022. The substitute bill includes provisions that require the clerks to continue to accept paper instruments in addition to electronic records. The bill is pending further action in the House.
Indiana: SB 357, which would provide that a county recorder may not refuse a record simply because it is in electronic form, passed the House as amended on 2/15/2022 and was returned to the Senate for concurrence.
New Jersey: Assembly Bill 2456 was introduced on 2/14/2022 to eliminate general purpose transfer fee and 1% fee on sale of certain residential property. Text is not yet available. The bill was assigned to the Assembly Housing Committee.
New Jersey: Assembly Bill 2458 was introduced on 2/14/2022 to eliminate the supplemental realty transfer fee. Text is not yet available. The bill was assigned to the Assembly Housing Committee.
New Jersey: Assembly Bill 3000 was pre-filed on 2/14/2022 to eliminate certain recording fees. Text is not yet available. Committee assignment is pending.
Utah: SB 184, which would require county recorders to provide for electronic recording of a plat and to accept an electronic document for the recording of a plat by 1/1/2023, passed the Senate on 2/17/2022. Committee assignment is pending in the House.
Wisconsin: SB 865, which would require that that covenants and restrictions for a planned community be recorded with the register of deeds of every county where the community is located by the homeowners association, passed the Senate on 2/15/2022. The bill also requires the Department of Financial Institutions to create a filing system for certain notices by homeowners associations. The bill is pending in the House.
Other Items/Legislation of Interest
New Jersey: Senate Bill 1415 was introduced on 2/10/2022 to reduce the statute of limitations for contract lawsuits not covered by the UCC from six years to three years. The bill also clarifies how partial payment on a debt obligation either tolls or revives the relevant statute of limitations for the obligation. The bill was assigned to the Senate Judiciary Committee.
………………………..
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.