Article 9 and Lien-Related Legislation
California: Assembly Bill 1766 was introduced on 2/2/2022 to amend the definition of “driver’s license and identification card” set forth in the state’s UCC § 9-503(h) to include an identification card issued to a person who is unable to submit satisfactory proof that the applicant’s presence in the United States is authorized under federal law. Committee assignment is pending.
Florida: SB 406, which would amend the state’s UCC § 9-108, passed the Senate on 2/3/2022 and is pending in the House. This bill would provide that a description of collateral by “accounts” is not sufficient for certain types of accounts and entitlements related to pensions, tax-free health savings accounts, education accounts, life insurance proceeds, disability benefits and similar assets.
Tennessee: House Bill 2183 was introduced on 1/31/2021 to authorize the creation of a public database by the department of revenue that shall be known as the state tax lien registry that shall be used for purposes of recording state tax lien notices. The database will be available over the internet. A notice of lien recorded in the state tax lien registry will be effective statewide from the date and time the notice of lien is recorded. The recordation will constitute notice of both the original proposed assessment and all subsequent assessments of liability against the same taxpayer. Upon request, the department of revenue shall disclose the specific amount of liability at a given date to an interested party legally entitled to the information. A similar bill was introduced the same date in the Senate as SB 2433. Both bills are pending committee assignment.
Other Uniform Laws Legislation
Colorado: Senate Bill 122 was introduced on 2/3/2022 to enact the Uniform Voidable Transactions Act. The bill was assigned to the Senate Judiciary Committee.
Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)
Illinois: House Bill 5427 was introduced on 1/28/2022 to provide that a court shall permit discovery of electronic records if the existence or ownership of a digital asset secured by a blockchain is factually in dispute. The bill also sets out parameters and procedures for courts on such discovery. In addition, the bill authorizes courts to order a test transaction not to exceed $1 to prove ownership or control. Finally, the bill establishes a task force to review court-ordered discovery of digital asset procedures. Committee assignment is pending.
Indiana: SB 351, which would add new Chapter 11 to the state’s UCC, passed the Senate on 2/1/2022. This bill would define “virtual currency” and would establish (i) the extent to which a purchaser acquires rights in virtual currency; (ii) when a purchaser of virtual currency takes free of an adverse claim; (iii) conditions for control of virtual currency. The bill would also provide for perfection of a security interest in virtual currency by control or filing a financing statement. Finally, the bill would authorize the attorney general to adopt rules regarding virtual currency and digital assets. The bill is now pending in the House.
Iowa: Senate Study Bill 3091 was introduced on 2/1/2022 to 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 was assigned to the Senate Judiciary Committee.
Minnesota: House Bill 2835 was introduced on 1/31/2022 to authorize a corporation to maintain records, including its share register, financial records and minute books as electronic records, which can include a distributed electronic record or database. The bill was assigned to the House Commerce Finance and Policy Committee.
Mississippi: HB 1154 and SB 2633, which would have created an exemption from certain state securities laws for open blockchain tokens, both died in committee on 2/1/2022.
Mississippi: HB 1195, which would have created a regulatory sandbox program for innovative financial products or services, including those using blockchain technology, died in committee on 2/1/2022.
Mississippi: HB 1153 and SB 2632 which would have adopted the “Digital Assets Act,” both died in committee on 2/1/2022.
Rhode Island: House Bill 7254 was introduced on 1/28/2022 to adopt the Rhode Island Economic Growth Blockchain Act. This bill would (i) define and categorizes various types of digital assets; (ii) provide for perfection of a security interest in digital assets by control or possession; (iii) define what constitutes control of a digital asset; and (iv) establish special purpose depository institutions to provide digital asset custodial services. The bill also includes a sandbox program for innovative financial products and services using blockchain. This is similar to HB 5425 and SB 345, which were introduced in 2021 and carried over to the 2022 session. HB 7254 was assigned to the House State Government and Elections Committee.
Tennessee: House Bill 2643 was introduced on 2/2/2022 to establish a blockchain and cryptocurrency study committee that will report to the legislature. The purpose of the committee is to help determine how to make Tennessee the most forward thinking and pro-business state for cryptocurrency and blockchain and to foster a positive economic environment for blockchain and cryptocurrency. A similar bill was introduced in the Senate on 2/3/2022 as SB 2855. Committee assignment is pending for both bills.
Tennessee: House Bill 2644 was introduced on 2/2/2022 to authorize local governments to invest in cryptocurrency, blockchains and fungible tokens. A similar bill was introduced in the Senate on 2/3/2022 as SB 2882. Committee assignment is pending for both bills.
Virginia: HB 263, which would authorize banks to provide virtual currency custodial services, passed the House on 2/2/2022 and is pending in the Senate.
West Virginia: Senate Bill 504 was introduced on 1/28/2022 to regulate digital assets. This bill would (i) prohibit taxation of virtual currency; (ii) prohibit utilities from infringing on use of energy in mining virtual currency; (iii) authorize use of blockchain by corporations for a variety of purposes, including allowing issuance off certificate tokens as corporate shares; (iv) exempt developer or seller of private blockchain tokens from securities laws if certain conditions are met; (v) define digital assets as intangible personal property for purposes of the UCC; (vi) provide for perfection of a security interest in digital assets by control; and (vii) provide that a bank may provide custodial services for digital assets. The bill was assigned to the Senate Finance Committee. A similar bill was introduced in the House on 2/3/2022 as HB 4010 and was assigned to the House Banking and Insurance Committee.
Business Organization Legislation
Minnesota: House Bill 2835 – See listing under Emerging Technology Legislation above.
Ohio: House Bill 556 was introduced on 2/1/2022 to revise non-profit corporation law. The bill (i) clarifies qualifications for directors; (ii) amends provisions regarding committees; and (iii) provides for the effect of a certificate of good standing issued by the secretary of state. Committee assignment is pending.
Virginia: HB 691, which would clarify provisions related to entity conversion in various business entity acts, passed the House on 1/31/2022. The bill was assigned to the Senate Commerce and Labor Committee.
Washington: SB 5489, which would make numerous changes to the state business organization laws, passed the Senate on 1/28/2022. The bill is now in the House Civil Rights and Judiciary Committee.
Notary Legislation
Massachusetts: The House concurred in Senate amendments to HB 4345, which would temporarily provide for remote notarization of physical documents, and added another amendment on 2/3/2022. The bill was then returned to the Senate for concurrence. The text of the amendments is not yet available. If the notary provisions are unaffected, then the bill would have retroactive effect to 12/15/2021 and permit remote notarization until 7/15/2022.
Massachusetts: House Bill 4430 was introduced on 2/3/2022 and appears to contain identical notary provisions to HB 4345. Committee assignment is pending.
Maryland: House Bill 663 was introduced on 1/31/2022 to amend the notary law. The bill would (i) increase the maximum fee a notary may charge from $4 to $25; (ii) eliminate the will and trust exception to the acts notaries are authorized to perform remotely; and (iii) provide for remote notarization of a tangible record. The bill was assigned to the House Health and Government Operations Committee.
Mississippi: HB 1322 and SB 2622, with would have adopted the “Remote Online Notarization Act,” died in committee on 2/1/2022.
New Mexico: House Bill 180 was introduced on 1/31/2022 to repeal a portion of the Revised Uniform Law on Notarial Acts that took effect on 1/1/2022. 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. Committee assignment is pending.
Real-Estate-Recording-Related Legislation
Kentucky: Senate Bill 135 was introduced on 2/2/2022 to require that county clerks to establish a portal that will enable the public to electronically file and search county records online, including real estate records and UCC fixture filings. Committee assignment is pending. This bill appears similar to HB 377, which was introduced late in January.
New Jersey: Assembly Bill 2288 was introduced on 2/3/2022 to require that an LLC provide ownership information when recording a deed. Text is not yet available. Committee assignment is pending.
New Jersey: Senate Bill 1351 was introduced on 2/3/2022 to promote prompt recording of residential deeds. Text of the bill is not yet available. Committee assignment is pending.
Tennessee: House Bill 2134 was introduced on 1/31/2022 to require that a deed of conveyance of real property shall be prepared and filed by a licensed attorney, title insurance agent, or the owner of the property. The bill provides an exception for deeds filed on behalf of a state or national bank, savings bank, credit union, or federal farm credit association. It also requires the county register of deeds to verify that an affidavit on a deed of conveyance of real property was duly signed and notarized stating under oath the name and address of the preparer of the document and additionally stating the preparer is a licensed attorney, title insurance agent, or the owner of the real property being transferred. Finally, the bill requires the register of deeds to refuse to register any deed of conveyance of real property that is not prepared by a licensed attorney, title insurance agent, or the owner of the real property and so stated on the document by a sworn affidavit. A similar bill was introduced in the Senate on 2/1/2022 as SB 2334. Committee assignment for both bills remains pending.
Other Items/Legislation of Interest
South Carolina: Senate Bill 1031 was introduced on 2/1/2022 to set the qualifications for a person to be eligible to hold the office of register of deeds. The bill was assigned to the Senate Judiciary Committee.
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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.