Article 9 and lien-related legislation
No developments to report this week.
Other uniform laws legislation (includes the 2022 Amendments to the UCC with UCC Article 12―Controllable Electronic Records)
Colorado: Senate Bill 90, which would enact the 2022 Amendments to the Uniform Commercial Code (UCC), took an unusual turn this week. The Senate voted to concur in the House amendments to Senate Bill 90 on 3/7/2023. Then, on 3/21/2023, before the bill was delivered to the governor, the Senate voted to reconsider. The Senate then voted not to concur. As a result, the bill is now in conference committee.
New Hampshire: House Bill 584, which would make updates to the prior version of the 2022 Amendments to the UCC enacted last year to conform with the official text, passed the House on 3/22/2023 and is pending in the Senate.
New Mexico: House Bill 90, which would enact the 2022 Amendments to the UCC, passed the Senate on 3/16/2023 and is now awaiting delivery to the governor.
North Dakota: The governor signed House Bill 1082 to enact the 2022 Amendments to the UCC on 3/20/2023. The new law takes effect on 8/1/2023.
Rhode Island: Senate Bill 820 was introduced on 3/23/2023 to enact the 2022 Amendments to the UCC. The bill was assigned to the Senate Judiciary Committee. A similar bill was introduced in the House in February as House Bill 5543.
Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)
Utah: The governor signed Senate Bill 160 on 3/17/2023 to address fraudulent transactions on a blockchain. The bill (i) creates 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) creates 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) authorizes 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 new law takes effect on 5/3/2023.
Wyoming: Senate Bill 127, which adopts the Wyoming Stable Token Act, became law without the governor’s signature on 3/17/2023. The new law creates the Wyoming stable token commission; provides 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 provides that all stable token funds held by the state shall be invested in U.S. treasury bills. The new law takes effect immediately.
Business organization legislation
California: Assembly Bill 1229, which originally consisted of a statement of legislative intention was amended on 3/23/2023 to provide the bill text for the establishment and governance of decentralized nonprofit associations. Such associations would consist of 100 or more members with a primary common purpose other than to operate a business for profit whose governance and the operations of the association would be reliant, in full or in part, on a blockchain or other distributed ledger technology. The bill was assigned to the Assembly Banking and Finance Committee.
Georgia: Senate Bill 148, which would comprehensively revise, simplify, and modernize the Georgia nonprofit corporations code, passed the House on 3/21/2023 and is pending delivery to the governor.
Washington: Senate Bill 5004, which would make several changes to the state Business Corporation Act, passed the House as amended on 3/20/2023 and returned to the Senate for concurrence.
California: Senate Bill 696, which originally made non-substantive changes to provisions regarding a certificate of acknowledgement, was amended on 3/20/2023 to make several changes to the law regarding notaries and public records. The amended bill would (i) give effect to a notarial act performed under the jurisdiction of another state, federally-recognized Indian tribe, or federal law; (ii) provide an application process with the secretary of state for an online notary; (iii) provide requirements and application process for certification of online notary platforms; (iv) provide access restrictions and privacy protections for records of online notarizations; and (v) exempt records of online notarizations from disclosure under the California Public Records Act. Further committee assignment is pending.
New Mexico: Senate Bill 246, which would amend the Revised Uniform Law on Notarial Acts (RULONA), passed the House as amended on 3/18/2023. The Senate concurred on the same day and the bill is now pending delivery to the governor. The bill would provide for “automatic notarial officers” who are judicial officers, county clerks, and licensed attorneys. The bill would make various other clarifications and changes, including to provisions regarding personal appearances, the official stamp, and other notary regulation matters.
North Dakota: The governor signed House Bill 1083 on 3/15/2023 to revise the remote notary provisions of the state’s version of the Revised Uniform Law on Notarial Acts. The new law takes effect on 8/1/2023.
Real estate recording related legislation
Alabama: Senate Bill 107 was introduced on 3/21/2023 to increase the taxes for recording of certain mortgages, deeds of trust, contracts of conditional sale, or other instruments given to secure payment of any debt which conveys any real or personal property. The recordation taxes would double from 15 cents per $100 of initial indebtedness to 30 cents per $100. The bill was assigned to the Senate Finance and Taxation Education Committee.
Maine: House Bill 831 was introduced on 3/22/2023 to prohibit the use of agreements for homeowners to exclusively list their residential property for sale. The bill prohibits the recording of the agreements and provides remedies for owners who are affected by the recording of the agreements. Committee assignment is pending.
North Carolina: House Bill 422 was introduced on 3/21/2023 to prohibit the recording of Unfair Real Estate Service Agreements, as such agreements are defined in the bill. The bill was assigned to the House Judiciary Committee. A similar bill was introduced in the Senate the same day as Senate Bill 344 and is pending committee assignment.
Pennsylvania: House Bill 657 was introduced on 3/21/2023 to prohibit the recording of certain Realty Agreements for services by real estate professionals that include an exclusive opportunity to list the property for more than one year and purport to create a security interest. The bill was assigned to the Housing and Community Development Committee.
Rhode Island: Senate Bill 788 was introduced on 3/23/2023 to authorize municipalities to set an additional conveyance tax rate of $10 per $500 of the consideration over $800,000. The bill was assigned to the Senate Finance Committee.
Utah: The governor signed House Bill 351 on 3/20/2023 to create the County Recorder Standards Board. The Standards Board will establish statewide standards for county recorders in relation to the protection and submission of documents. The new law takes effect on 5/3/2023.
Other items and legislation of interest
Utah: The governor signed House Bill 216 on 3/20/2023 to establish the Business and Chancery Court. The Business and Chancery Court will have jurisdiction over a wide variety of contract, business organization disputes, and other commercial claims. The new law takes effect on 7/1/2024.
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.