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Legislative Developments 3-25-22

Article 9 and Lien-Related Legislation

Indiana: The governor signed HB 1092 on 3/18/2022 to delete a non-uniform notice portion of the state’s UCC § 9-502.  The non-uniform provision requires the secured party to send a copy of a financing statement to the debtor within 30 days of filing.  Indiana is the only state that has such a requirement.  It has been in place since Revised Article 9 took effect in 2001. The new law takes effect 7/1/2022.  Secured parties will no longer need to send a copy of the financing statement to the debtor for records filed on or after the effective date.

Other Uniform Laws Legislation

No developments to report this week.

Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)

Idaho:  HB 583, which would enact the “Digital Assets Act,” passed the Senate on 3/23/2022.  This bill would (i) define digital assets; (ii) classify digital assets as personal property and general intangibles;  (iii) define what constitutes possession and control of a digital asset; and (iv) provide for perfection of a possessory security in a digital asset by possession or control.  The bill is now awaiting action by the governor.   

Oklahoma:  SB 590, which would adopt the Commercial Digital Asset Mining Act of 2022, passed the Senate on 3/22/2022 and is pending in the House.  The bill would provide tax incentives and streamlined approval process for commercial mining of digital assets. 

Utah:  The governor signed HB 243 on 3/24/2022 to extend the state’s Regulatory Sandbox program to innovative use of new and emerging technology, including blockchain.  The new law takes effect 60 days after the legislature adjourns.   

Utah:  The governor signed HB 335 on 3/24/2022 to create the Blockchain and Digital Innovation Task Force.  The task force will develop knowledge and expertise regarding blockchain and related technologies.  The task force will then make policy recommendations to the legislature.  The new law takes effect 60 days after the legislature adjourns. 

 Utah:  The governor signed HB 456 on 3/24/2022 to provide that the division of finance shall contract with a third party service provide to allow for the payment of taxes using digital assets, including virtual currency. The new law takes effect on 7/1/2022.

Utah:  The governor signed SB 182 on 3/24/2022 to enact the Digital Asset Management Act. The bill provides definitions, classifies digital assets as intangible personal property and clarifies how an owner may demonstrate ownership of such assets. The new law takes effect 60 days after the legislature adjourns. 

Business Organization Legislation

No developments to report this week.

Notary Legislation

Maryland:  HB 663, which would amend the notary law, passed the House on 3/18/2022 and is pending in the Senate Judicial Proceedings Committee.  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.    

Rhode Island:  Senate Bill 2705 was introduced on 3/17/2022 to amend state notary law to permit remote notarization and recognize notarial acts performed under the law of a federally-recognized Indian tribe.  The bill was assigned to the House State Government and Elections Committee.   This bill appears similar to HB 7363, which was introduced last month, and HB 7731, which was introduced on 3/2/2022.

Real-Estate-Recording-Related Legislation

Kentucky:  The governor signed SB 135 on 3/24/2022 to require that county clerks establish a portal that will enable the public to electronically file and search county records online, including real estate records and UCC fixture filings.  The new law takes effect 90 days after the legislature adjourns.  

Utah:  The governor signed SB 80 on 3/24/2022 to provide requirements for the legal description on documents to be recorded with a county recorder. The new law takes effect on 7/1/2022.   

Utah:  The governor signed SB 184 on 3/24/2022 to require that county recorders provide for electronic recording of a plat and to accept an electronic document for the recording of a plat by 1/1/2023.   

Vermont: HB 512, which would create an office within the secretary of state to manage municipal land records, passed the House on 3/23/2022.  The new office would be responsible for the implementation and utilization of modern methods, techniques, equipment, documentation, and training to improve the quality of such records and help to achieve a high degree of standardization throughout the State.  The bill also adopts the Uniform Real Property Electronic Recording Act (URPERPA).  The bill is now pending in the Senate.

Wisconsin:  The governor signed SB 865 on 3/17/2022 to require that that covenants and restrictions for a planned community be recorded by the homeowners association with the register of deeds of every county where the community is located.  The bill also requires the Department of Financial Institutions (DFI) to create a filing system for certain notices by homeowners associations.  The new law took effect on 3/20/2022, except that the DFI has until 1/1/2023 to put the new filing system in place.   

Other Items/Legislation of Interest

United States: Senate Bill 3891 was introduced on 3/22/2022 to authorize the U.S. Postal Service to provide basic banking services. Such services would include small dollar loans, small dollar checking and savings accounts, and various transactional services.  The USPS would not be a chartered bank and it would not be subject to the capital requirements applicable to insured depository institutions.  The bill also provides that the USPS will not be subject to UCC Article 4.


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.