Article 9 and lien-related legislation
No developments to report.
Other uniform laws legislation (includes the 2022 Amendments to the UCC with UCC Article 12-Controllable Electronic Records)
Georgia: House Bill 1240 was introduced on 2/13/2024 to enact the 2022 Amendments to the Uniform Commercial Code (UCC), including UCC Article 12-Controllable Electronic Records and related amendments.
Illinois: Senate Bill 3696 was introduced on 2/9/2024 to enact the 2022 Amendments to the UCC, including UCC Article 12-Controllable Electronic Records and related amendments.
Iowa: House Bill 2474 was introduced on 2/13/2024 to address a financial institution’s acceptance of negotiable instruments. The bill would provide that a financial institution in the state shall accept tender of any negotiable instrument in exchange for issuance of a conditional credit to the tendering party, make a good-faith effort to obtain payment from the original issuer of the negotiable instrument, and remit cash to the original issuer from the payment of the negotiable instrument within two days following the receipt of the payment.
Iowa: House Bill 2519 was introduced on 2/14/2024 to amend provisions of the UCC applicable to controllable electronic records. Iowa enacted an early version of the 2022 Amendments to the UCC in 2022. This bill appears intended to bring that law into conformity with the final official text of the 2022 Amendments, including the transition provisions.
Minnesota: House Bill 1308 was introduced on 2/12/2024 to amend the state’s version of UCC § 1-201 to add a definition for “central bank digital currency” and exclude central bank digital currency from the definition of “money.”
Minnesota: House Bill 3868 was introduced on 2/15/2024 to enact the 2022 Amendments to the UCC, including Article 12-Controllable Electronic Records and conforming amendments.
Nebraska: The governor signed Legislative Bill 94 on 2/13/2024 to enact the 2022 Amendments to the UCC, including Article 12-Controllable Electronic Records and conforming amendments. The new law has an effective date of 7/19/2024.
Utah: House Bill 164, which would amend UCC Article 9 with respect to central bank digital currency, passed the Senate on 2/9/2024 and is awaiting delivery to the governor. The bill would add a definition of “central bank digital currency” to UCC § 9-102 and exclude central bank digital currency from the definition of “money.” The bill would also provide that a central bank digital currency is not specie legal tender and is not legal tender in the state.
Virginia House Bill 1286, which would enact the 2022 Amendments to the UCC, including UCC Article 12-Controllable Electronic Records, and related amendments, passed the House on 2/13/2024.
Virginia Senate Bill 339, which would provide that it shall be legal to participate in home digital asset mining and to limit local government ability to regulate digital asset mining, passed the Senate on 2/12/2024.
Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)
Arizona: Senate Bill 1127, which would prohibit a city, town, or county from imposing a tax or fee on anyone running a node using blockchain technology from a residence, passed the Senate on 2/15/2024 and is now in the House.
Idaho: House Bill 1296 was introduced on 2/9/2024 to create the Bitcoin Protection Act. This bill would (i) establish a right to mine bitcoin; (ii) limit state and local government ability to impose requirements on bitcoin mining that do not apply to all businesses generally; and (iii) prevent state and local government from imposing a tax on the use of bitcoin as a payment method.
Illinois: Senate Bill 3666 was introduced on 2/9/2024 to create the Digital Assets Regulation Act. The Act would provide that the Department of Financial and Professional Regulation shall regulate digital asset business activity in the State. The bill would also create the Special Purpose Trust Company Article in the Corporate Fiduciary Act.
Mississippi: House Bill 1214 was introduced on 2/14/2024 to adopt the Blockchain Basics Act. This bill would (i) prohibit any agency or political subdivision of the state from accepting or requiring payment using a central bank digital currency; (ii) limit state and local government ability to regulate the use of digital asset storage and use as a method of payment; (iii) establish that it is legal to participate in home digital asset mining; (iv) limit the ability of state and local government to regulate digital asset mining; and (v) exempt digital asset mining services from licensing as a money transmitter and securities and investment laws.
Ohio: House Bill 406 was introduced on 2/12/2024 to adopt the Blockchain Basics Act. This bill would (i) prohibit certain state and local government actions respecting digital asset mining; (ii) exempt certain digital currency transactions from state and local income taxes; and (iii) prohibit local charges on digital assets.
Wyoming: Senate Bill 52 was introduced on 2/12/2024 to amend the Wyoming Stable Token Act. The amendments would (i) allow for investments in cash and government securities; (ii) authorize the Wyoming stable token commission to issue different types and amounts of stable tokens and to contract with financial service providers; and (iii) requiring reporting only for fully reserved stable tokens.
Business organization legislation
California: Senate Bill 1168 was introduced on 2/14/2024 to provide remedies for a person who learns or reasonably suspects that their personal identifying information (PII) has been used unlawfully in a business entity filing. The bill would (i) authorize the secretary of state to cancel an LLC or corporation upon the entry of a court order; (ii) authorize a person who has learned their PII has been used unlawfully in a business filing to file a disclaimer of proper authority with the secretary of state; and (iii) authorize the secretary of state to cancel the filing of the formation documents for specified business entities upon the reasonable belief that the entity was created for an unlawful, false, or fraudulent purpose.
California: Senate Bill 1201 was introduced on 2/15/2024 to require limited liability companies to report as part of the entity’s biennial statement the name and complete business or residence addresses of any beneficial owner.
Florida: Senate Bill 1198 was substituted on 2/9/2024 with provisions to address ratification of defective corporate actions, including notice requirements and filing articles of validation.
Maryland: House Bill 1471 was introduced on 2/14/2024 to redefine the term “beneficial ownership” for purposes of reporting to the secretary of state and for use in certain procurement contracts. The new definition increases the ownership interest threshold for beneficial ownership reporting from 5% to 25% and adds a substantial control test for determining whether an individual is a beneficial owner.
New York: Senate Bill 8059, which would amend the limited liability company beneficial owner disclosure requirements recently enacted by Senate Bill 995 (2023), passed the Assembly on 2/14/2024 and is awaiting consideration by the governor. The bill would expand the reporting requirements to include reporting of applicants and other requirements. However, it also moves the effective date for existing companies to report beneficial ownership information back a year to 1/1/2026.
Notary legislation
Illinois: Senate Bill 3513 was introduced on 2/9/2024 to amend the Notary Public Act to provide that an applicant to renew an appointment as a notary public or electronic notary public is not required to complete a course of study or pass an examination if the applicant is a licensed attorney, a judge, or employed by a licensed attorney or the court.
Mississippi: House Bill 1168 was introduced on 2/14/2024 to amend the Revised Mississippi Uniform Law on Notarial Acts to (i) authorize a notary to certify a tangible copy of an electronic record; (ii) prescribe requirements for performing remote notarizations; (iii) prescribe requirements for identifying a person appearing before a notary remotely; and (iv) other related changes to the notary law.
Mississippi: House Bill 1257 was introduced on 2/15/2024 to authorize the commission of qualified non-residents as notaries public.
Utah: House Bill 25, which would provide for electronic notarization of documents to be recorded electronically with a county recorder, passed the Senate on 2/15/2024.
Wisconsin: Senate Bill 626, which would allow a notary public to perform a notarial act for a remotely located individual involving the creation and execution of a limited financial power of attorney for a real estate transaction, passed the Assembly on 2/13/2024 and is awaiting delivery to the governor.
Wisconsin: Senate Bill 898, which would authorize remote notarization of certain documents, passed the Senate on 2/13/2024. The types of documents include estate planning documents, remote witnessing of a declaration to health care professionals, an authorization for final disposition, a power of attorney for health care, a power of attorney for finances and property, or a will.
Real estate recording-related legislation
Colorado: House Bill 1269 was introduced on 2/13/2024 to increase the fee a clerk may charge for filing or recording a document from $10 to $40, unless a different fee for the type of document is specified by law.
Georgia: Senate Bill 474 was introduced on 2/8/2024 to require deeds or other instruments presented to a clerk of superior court by any person, entity, or agent thereof that is not licensed or regulated by specified provisions of law to be filed using electronic means in accordance with the Uniform Real Property Electronic Recording Act and any rules and regulations promulgated by the Georgia Superior Court Clerks’ Cooperative Authority.
Maryland: House Bill 1308 was introduced on 2/9/2024 to prohibit a person from recording a deed or other instrument that the person knows contains false information. If enacted, a person that violates the prohibition would be subject to misdemeanor criminal charges.
Maryland: House Bill 1419 was introduced on 2/9/2024 to prohibit the intentional fraudulent sale or attempted sale, conveyance, or lease of real property by a person who does not own the real property. The bill would also prohibit the acquisition, sale, or conveyance or the attempted acquisition, sale, or conveyance of real property by deception, intimidation, threat, or undue influence.
Massachusetts: House Bill 4357 was introduced on 2/12/2024 to modernize the administration of registered land.
Minnesota: Senate Bill 3489 was introduced on 2/12/2024 and House Bill 3692 on 2/13/2024 to modify the requirements for a contract for deed for residential real property between an investor seller and purchaser, including recording provisions.
Rhode Island: House Bill 7683 was introduced on 2/15/2024 to impose an additional conveyance tax of $6.90 per $500 in consideration on any purchaser of a single-family residence that is a for-profit organized entity with over $15,000,000 in assets.
Rhode Island: Senate Bill 2361 was introduced on 2/12/2024 to allow municipalities to impose an additional conveyance tax of up to $10 per each $500 of the consideration in excess of $800,000.
Rhode Island: Senate Bill 2372 was introduced on 2/12/2024 to increase the conveyance tax for residential properties sold in excess of $2 million to $3.30 per each $500 of the consideration.
United States: Senate Bill 3720 was introduced on 2/1/2024 to require the seller in a land installment contract transaction (contract for deed) for residential real property to record the contract with the office where deeds are recorded on the property within five days of the date on which the contract is executed. The bill also provides penalties for non-compliance and authorizes the Consumer Financial Protection Bureau to promulgate appropriate regulations.
Utah: Senate Bill 151 was substituted on 2/8/2024 to create civil liability for an individual who records a fraudulent deed. The bill would (i) establish a process by which an individual may nullify a fraudulent deed; (ii) direct how a court should treat a petition to nullify a fraudulent deed; and (iii) mandate court-ordered consequences for recording a fraudulent deed. The bill passed the Senate on 2/9/2024 and is pending in the House.
Utah: Senate Bill 165, which would require that a county maintain a system for a property owner to elect to receive electronic notification when the county recorder records a deed or a mortgage on the owner’s property, passed the Senate on 2/12/2024.
West Virginia: House Bill 5326, which would prohibit unfair real estate service agreements, passed the House on 2/14/2024. The bill would prohibit recording of such agreements and allow a county recorder to refuse to record such unfair service agreements.
West Virginia: Senate Bill 775 was introduced on 2/14/2024 to provide that all deeds, except for a transfer on death deed, shall contain the notarized acknowledgement of the grantee(s) evidencing the acceptance of the conveyance of the real property being conveyed by the deed.
Wisconsin: Senate Bill 274 (2023), which would reduce the real estate transfer fee from .30 to .20 per $100 value of the conveyance, passed the Senate on 2/13/2024.
Other items and legislation of interest
Illinois: House Bill 5581 was introduced on 2/9/2024 to create the Illinois Privacy Rights Act. The bill would give consumers protections of privacy and certain rights to control their personal data. There are exceptions for individuals in the commercial and employment context.
Illinois: House Bill 5587 was introduced on 2/9/2024 to create the Commercial Financing Licensing Act, which would require licensing for a person that provides commercial financing in the state. There are some exceptions for certain regulated financial institutions. The bill also provides for a database to be established and maintained by the Department of Financial and Professional Regulation and requires licensees to report detailed information about the borrower, financing terms, fees, and any other information requested by the department.
Wyoming: House Bill 188 was introduced on 2/13/2024 to establish a central electronic notification system to be maintained by the secretary of state. Publication on the centralized electronic notice system of a notice required or permitted by law shall satisfy all requirements that the publication be made in a newspaper.
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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.