Article 9 and Lien-Related Legislation
Mississippi: Senate Bill 2482, which would authorize the department of revenue to transmit and receive liens and satisfaction of liens electronically for motor vehicles and manufactured homes, passed the Senate on 2/2/2023 and is pending in the House.
Missouri: House Bill 988 was introduced on 1/30/2023 to change the definition of “farm products” in Uniform Commercial Code (UCC) § 9-102(a)(34). The change would delete standing timber as an exception to the definition and expressly add “trees” to § 9-102(a)(34)(A), alongside “crops” and other farm products. Committee assignment is pending.
New York: Senate Bill 3265 was introduced on 1/30/2023 to provide for a lien against the real and personal property of the owner of a commercial towing company for illegal or improper towing practices. The bill also provides for personal liability of members and shareholders of commercial towing companies for such acts. The lien on personal property must be perfected by filing a financing statement under the UCC. The bill was assigned to the Senate Judiciary Committee. This appears similar to Assembly Bill 834, which was introduced last month.
Other Uniform Laws Legislation (Includes the 2022 Amendments to the UCC with UCC Article 12, Controllable Electronic Records)
Colorado: Senate Bill 90 was introduced on 1/27/2023 to enact the 2022 Amendments to the UCC, including UCC Article 12, Controllable Electronic Records, and related amendments. The bill was assigned to the Senate Judiciary Committee.
South Dakota: House Bill 1193 was introduced on 1/31/2023 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 Judiciary Committee.
Tennessee: House Bill 1499 was introduced on 1/31/2023 to amend the state’s version of UCC Article 3. Specifically, this bill would extend the time during which a check must be presented for payment under § 3-314(e) from the currently uniform 30 days to 35 days. A companion bill was introduced in the Senate the same day as Senate Bill 1075. Committee assignment for both bills is pending.
West Virginia: House Bill 3212 was introduced on 2/2/2023 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 Judiciary Committee. A similar bill, Senate Bill 549 was also introduced in the Senate the same day and was assigned to the Senate Judiciary Committee.
Emerging Technology Legislation (Blockchain, Distributed Ledger Technology, Cryptocurrency, etc.)
Missouri: Senate Bill 536 was introduced on 1/23/2023 to provide that a person may have a home digital asset mining operation and that digital asset mining businesses may operate in any area zoned for industrial use. The bill would also prohibit state and local government from placing certain limitations on home digital asset mining and business digital asset mining operations. Committee assignment is pending.
Utah: Senate Bill 160 was introduced on 1/31/2023 to address fraudulent transactions on a blockchain. 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. Committee assignment is pending.
Wyoming: Senate Bill 127, which would adopt the Wyoming Stable Token Act, passed the Senate on 2/2/2023 and is pending in the House. The bill would create the Wyoming stable token commission; provide for the issuance of Wyoming stable tokens, which shall be redeemable for one U.S. dollar held in trust by the state of Wyoming and shall only be issued in exchange for dollars; and provide that all stable token funds held by the state shall be invested in U.S. treasury bills.
Business Organization Legislation
Utah: House Bill 357 was introduced on 2/1/2023 to adopt the Decentralized Autonomous Organizations Act. 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. Committee assignment is pending.
West Virginia: Senate Bill 531 was introduced on 1/31/2023 to add a chapter to the Uniform Limited Liability Company Act that provides for the creation of a protected series. The bill was assigned to the Senate Judiciary Committee.
Notary Legislation
New York: Assembly Bill 3225 was introduced on 2/2/2023 to amend real property law regarding acknowledgments and proofs of conveyance taken in other U.S. states and territories. The bill clarifies that the signature and title of certain notarial officers conclusively establishes the authority of such officer to perform the acknowledgement or proof of conveyance. The bill was assigned to the Assembly Judiciary Committee.
Real Estate Recording-Related Legislation
Iowa: House Bill 111, which would exempt deeds that transfer assets to the beneficiaries of a trust from the real estate transfer tax, passed the House on 2/2/2023 and is pending committee assignment in the Senate.
Iowa: Senate Bill 141 was introduced on 1/26/2023 to authorize the governing board of the statewide land record information system to provide for bulk access to electronic groundwater hazard documents and aggregated anonymous data. The bill was assigned to the Senate Ways and Means Committee.
Oregon: House Bill 2029, which would increase the minimum font size on documents presented for recording with a county clerk from 8 point to 10 point, passed the House on 1/31/2023 and is pending in the Senate.
Tennessee: House Bill 1182 was introduced on 1/31/2023 to prohibit the recording of deceptive service agreements, set statutory damages for a violation, and offer remedies for a person with an interest in the property subject to such agreement. Committee assignment is pending. This is similar to Senate Bill 368, which was introduced early last week.
Tennessee: House Bill 1344 was introduced on 1/31/2023 to amend law applicable to recording deeds. The bill would (i) require that a deed for conveyance of real property be prepared and filed by a licensed attorney, title insurance agent, or the owner of the property; (ii) require the register of deeds to verify than an affidavit on a deed of conveyance was duly signed and notarized, and also states that it was prepared by a licensed attorney, title insurance agent, or the owner of the property; and (iii) require the register of deeds to refuse to register any deed of conveyance unless it includes the required prepared by statements. A similar bill, Senate Bill 1082 was introduced the same day in the Senate. Committee assignment is pending for both bills.
Utah: House Bill 211, which would void certain residential property service agreements and prohibit the recording of such void agreements, passed the House on 1/30/2023 and is now assigned to the Senate Business and Labor Committee. The bill also provides that recordation of void agreements in violation of this provision may be a violation of the Wrongful Lien Act.
Utah: House Bill 351 was introduced on 2/1/2023 to create the County Recorder Oversight Board for the purpose of establishing 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. Committee assignment is pending.
Other Items and Legislation of Interest
New York: Senate Bill 3235 was introduced on 1/30/2023 to provide that a user of information, in possession of a consumer’s identifying information when such identifying information is impermissibly obtained by an unauthorized third party, is liable to such consumer in an amount equal to the sum of $10,000, actual damages, and the costs of a successful action, including attorney’s fees. The bill is pending in the Assembly Governmental Operations Committee.
Utah: House Bill 216, which would establish the Business and Chancery Court, passed the House on 2/2/2023 and is pending in the Senate. The Business and Chancery Court would have jurisdiction over a wide variety of contract, business organization disputes, and other commercial claims.
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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.