Article 9 and lien-related legislation
Florida: House Bill 901 was pre-filed on 2/16/2023 to amend the state’s version of UCC § 9-108 so that a collateral description only by type is not sufficient for certain accounts related to proceeds from insurance, disability, unemployment, and other benefits. Committee assignment is pending introduction.
Montana: House Bill 477 was introduced on 2/9/2023 to provide that the secretary of state may charge a $25 fee for filing a UCC financing statement when the collateral is located within the boundaries of an Indian reservation and is subject to the laws of the governing body of the reservation. The bill would also treat entities formed under the law of a federally recognized Indian tribe as foreign entities under business entity law. Committee assignment is pending.
Texas: Senate Bill 925 was introduced on 2/14/2023 to add Section 9.5265 to the Business and Commerce Code (Texas’ version of UCC Article 9). This new section provides that the secretary of state may use blockchain technology for the purposes of accepting and storing electronic financing statements and related records. Committee assignment is pending
Other uniform laws legislation (includes the 2022 amendments to the UCC with UCC Article 12 – Controllable Electronic Records)
Missouri: House Bill 1165 was introduced on 2/15/2023 to enact the 2022 amendments to the UCC, including UCC Article 12 – Controllable Electronic Records, and related amendments. The bill was assigned to the General Laws Committee.
Montana: Senate Bill 370 was introduced on 2/15/2023 to enact the 2022 amendments to the UCC, including UCC Article 12 – Controllable Electronic Records, and related amendments. Committee assignment is pending.
New Mexico: HB 90 was introduced, which would enact the 2022 amendments to the UCC, passed the House on 2/13/2023 and was assigned to multiple committees in the Senate.
North Dakota: HB 1082 was introduced, which would enact the 2022 amendments to the UCC, passed the House on 2/15/2023 and is pending in the Senate.
Rhode Island: House Bill 5543 was introduced on 2/15/2023 to enact the 2022 amendments to the UCC, including UCC Article 12 – Controllable Electronic Records, and related amendments. The bill was assigned to the House Corporations Committee.
Emerging technology legislation (blockchain, distributed ledger technology (DLT), cryptocurrency, etc.)
Illinois: Senate Bill 1887 was introduced on 2/9/2023 to create the Digital Property Protection and Law Enforcement Act. This bill would provide that smart contracts for delivery of goods and services must include code that allows enforcement of court orders. The bill also authorizes courts to order blockchain transactions in certain cases where the private key is unknown or to remedy fraud. If enacted, each blockchain operator that has mined, validated, or otherwise participated in processing a blockchain transaction on the blockchain network originating in Illinois after the effective date is liable to the secured party for any damages suffered due to a violation of such a court order under this act, together with the plaintiff’s costs of the action and reasonable attorney’s fees, as determined by a court. Committee assignment is pending.
Utah: House Bill 470 was introduced on 2/14/2023 to create the Government Digital Verifiable Electronic Records Act. The bill would establish a commission to research and develop standards for government issued digital verifiable credentials and records, including verification through the use of blockchain or distributed ledger technology. Committee assignment is pending.
Wyoming: HB 86, which deals with privacy of digital keys, passed the Senate on 2/14/2023 with amendments. The bill would provide that no person shall 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, unless a public key is unavailable or unable to disclose the requisite information with respect to the digital asset, digital identity, or other interest or right. The Senate amendment removed a provision that allowed a court to make an exception following in camera review. The House concurred in the Senate amendment on 2/15/2023. The bill is now pending delivery to the governor.
Business organization legislation
California: Assembly Bill 1229 was introduced on 2/16/2023 as a statement of legislative intent to create a category within existing statutes related to unincorporated associations and nonprofit associations appropriate for the decentralized operations of blockchain networks and smart contract protocols. Committee assignment is pending.
Georgia: Senate Bill 148 was introduced on 2/15/2023 to comprehensively revise, simplify, and modernize the Georgia nonprofit corporations code. The bill was assigned to the Senate Judiciary Committee.
Maryland: Senate Bill 870 was introduced on 2/15/2023 to provide for the formation of limited worker cooperative associations under the state’s corporations and associations law. The bill also provides that the Maryland limited liability company law applies to limited worker cooperative associations with certain limitations. The bill was assigned to the Senate Judiciary Proceedings Committee.
Oregon: Senate Bill 909 was introduced on 2/14/2023 to update and modernize laws that govern formation, governance, operations, and conversion of limited liability companies and relations among members, managers, and third parties. The bill was assigned to the Senate Judiciary Committee.
Utah: HB 357, which would adopt the Decentralized Autonomous Organizations Act, passed the House on 2/16/2023 and is pending in the Senate. The bill would (i) establish the requirements of a decentralized autonomous organization (DAO) to be recognized by the state; (ii) establish the purposes for which a DAO may be formed; and (iii) establish the membership requirements and rights of members of DAOs.
California: Assembly Bill 743 was introduced on 2/13/2023 to authorize remote online notarization. If enacted, the bill would (i) permit the secretary of state to commission online notaries; (ii) establish various compliance requirements for an online notary; and (iii) require registration with the secretary of state by entities that wish to provide remote online notarization platforms. Committee assignment is pending.
Colorado: Senate Bill 153 was introduced on 2/15/2023 to extend the sunset provision for the Revised Uniform Law on Notarial Acts by nine years from 9/1/2023 until 9/1/2032. The bill also deletes statutory fees for notarial acts and makes other changes regarding certificates and interpreters. The bill was assigned to the Senate Business, Labor and Technology Committee.
Connecticut: House Bill 6713 was introduced on 2/16/2023 to adopt the Connecticut Revised Uniform Law on Notarial Acts, which includes remote notary provisions. The bill was assigned to the Joint Judiciary Committee.
Connecticut: Senate Bill 1040 was introduced on 2/16/2023 to authorize notaries to perform remote online notarial acts. The bill was assigned to the Joint Judiciary Committee.
Real estate recording-related legislation
California: Assembly Bill 1242 was introduced on 2/16/2023 to prohibit a person from knowingly presenting for a recording or filing with a county recorder an exclusive right to list or sell document for a period in excess of one year. The bill would subject a person who presents a document in violation of this prohibition to civil penalties. Committee assignment is pending.
Idaho: House Bill 158 was introduced on 2/16/2023 to prohibit the recording of unfair service agreements and to provide remedies for a person with an interest in the property subject to such agreement. Committee assignment is pending.
Illinois: The governor signed HB 3878 (2021) on 2/10/2023 to increase the Rental Housing Program surcharge on recording documents from $9 to $18. The bill also increases the flat fees for recording several classes of documents. The new law takes effect on 7/1/2023.
Illinois: House Bill 2358 was introduced on 2/14/2023 to increase the fees that a county recorder may charge for recording documents. Committee assignment is pending.
Tennessee: SB 124, which originally would have required that documents submitted for recording must use at least 12-point Times New Roman type size, passed the Senate on 2/13/2023 and is pending in the House. An amendment on the Senate floor deleted the words “Times New Roman” so now the bill just requires whatever font is used to be at least 12 pt.
Texas: House Bill 2186 was introduced on 2/10/2023 to provide that a county clerk may not accept a document for filing in the real property records of the county if the person presents the document in person and does not have or refuses to provide a photo identification. Committee assignment is pending.
Utah: HB 211, which would void certain residential property service agreements and prohibit the recording of such void agreements, passed the Senate on 2/16/2023 and is awaiting delivery to the governor. The bill also provides that recordation of void agreements in violation of this provision may be a violation of the Wrongful Lien Act.
Utah: HB 351, which would create the County Recorder Oversight Board, passed the House on 2/13/2023 and is pending in the Senate. The Oversight Board would establish statewide standards for county recorders in relation to the protection and submission of documents. The bill would require a county recorder to comply with the policies and procedures established by the board.
Utah: Senate Bill 228 was introduced on 2/13/2023 to require an individual who presents for recording a document transferring nonresidential property to file an affidavit disclosing information about the sale of the property, including sales price. The information in such affidavit would be subject to confidentiality protections as commercial information. County recorders would be prohibited from recording the affidavit. The bill was assigned to the Senate Business and Labor Committee.
Other items and legislation of interest
California: Senate Bill 711 was introduced on 2/16/2023 to create a workgroup that will explore the feasibility of creating a blockchain baccalaureate degree program at community colleges. Committee assignment is pending.
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 website.