Article 9 and lien-related legislation
Virginia: House Bill 2184, which would establish a procedure for a settlement agent to release a specific piece of property from a judgment lien, passed the Senate as amended on 2/22/2023. The House concurred in the Senate amendments on 2/23/2023 and the bill is now pending delivery to the governor.
Other uniform laws legislation (includes the 2022 Amendments to the UCC with UCC Article 12―Controllable Electronic Records)
Arizona: Senate Bill 1236, which would prohibit local governments from imposing taxes or fees on the use of blockchain technology, passed the Senate on 2/21/2023 and is pending in the House. Colorado: Senate Bill 90, which would enact the 2022 Amendments to the UCC, passed the Senate on 2/22/2023 and is pending in the House.
Washington: Senate Bill 5077, which would enact the 2022 Amendments to the UCC, passed the Senate on 2/22/2023 and is pending in the House.
Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)
Utah: Senate Bill 160, which would address fraudulent transactions on a blockchain, passed the Senate on 2/22/2023. The bill would (i) create a cause of action for fraudulent transactions that have been committed on a blockchain that has specific technology implemented to allow reversal of transactions; (ii) create an administrative agency action for fraudulent transactions that have been committed on a blockchain that has specific technology implemented to allow reversal of transactions; and (iii) authorize the Attorney General’s Office to operate a node on a blockchain that allows the Attorney General’s Office to reverse a fraudulent transaction on a blockchain. The bill is pending in the House Public Utilities and Technology Committee.
Wyoming: The governor signed House Bill 86 on 2/21/2023 to address the privacy of digital keys. The new law provides 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 new law takes effect 7/1/2023.
Business organization legislation
Wyoming: Senate Bill 75, which would amend the state’s corporations law with respect to decentralized autonomous organizations, passed the House on 2/23/2023 and is pending delivery to the governor. The bill would also provide for a publicly available identifier to identify a smart contract.
Iowa: House Bill 397 was introduced on 2/22/2023 to require that if a notary elects to use identity proofing for purposes of performing remote notarial acts, the identity proofing must conform to standards established by the secretary of state. Committee assignment is pending.
Illinois: House Bill 3796 was introduced on 2/17/2023 to amend the Notary Public act. The bill (i) adds definitions for “email communication,” “government employee,” ,”public body,” and “recorded” to the notary public act; (ii) amends various sections that reference audio-video communications to add “or email communication”; and (iii) creates a signature repository for public bodies that want its notary employees to complete remote acts wherein the signatures may be used by the public body notaries for future notarization. Committee assignment is pending.
New York: Senate Bill 5014 was introduced on 2/21/2023 to require that banks and credit unions have a notary public available on the premises during regular business hours. The bill was assigned to the Senate Banks Committee. This bill appears similar to Assembly Bill 4124, which was introduced earlier this month.
United States: House Bill 1059 was introduced on 2/17/2023 to enact the SECURE Act, which would authorize electronic and remote notarization in matters that affect interstate commerce. The SECURE Act would (i) authorize notaries public to perform and to establish minimum standards for electronic notarizations and remote notarizations that occur in or affect interstate commerce; (ii) require any Federal court to recognize notarizations performed by a notarial officer of any State; and (iii) require any State to recognize notarizations performed by a notarial officer of any other State when the notarization was performed under or relates to a public act, record, or judicial proceeding of the notarial officer’s State or when the notarization occurs in or affects interstate commerce. Committee assignment is pending.
Real estate recording-related legislation
Georgia: House Bill 444 was introduced on 2/17/2023 to repeal and replace certain sections of state law applicable to lis pendens. The bill would expressly require clerks to record lis pendens. The bill was assigned to the House Judiciary Committee.
Missouri: House Bill 1269 was introduced on 2/23/2023 to prohibit a person from recording an instrument conveying real estate unless the instrument discloses the sales price of the real estate. A purchaser of property where an instrument is recorded in violation of this requirement is liable to the state for an amount equal to 5% of the sales price of the real estate. Committee assignment is pending.
Oklahoma: SB 78, which would authorize county clerks to provide certified copies of real estate records in electronic format, passed the Senate on 2/23/2023 and is pending in the House.
Other items and legislation of interest
Missouri: House Bill 1216 was introduced on 2/22/2023 to provide that a person may not obtain a loan with a quit claim deed unless the person is party to the original warranty deed or obtained title to the real property through a quiet title action. Committee assignment is pending.
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.