Article 9 and Lien-Related Legislation
Indiana: The House concurred in Senate amendments to HB 1092 on 3/1/2022. This bill would 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 was took effect in 2001. The bill is awaiting delivery to the governor.
Missouri: Senate Bill 1228 was introduced on 3/1/2022 to amend the UCC definition of “farm products” to expressly include trees. Committee assignment is pending.
Oklahoma: House Bill 3811 was introduced on 2/7/2022 to address a UCC matter but did not include any text. The text was added in committee on 3/2/2022. The bill now amends the law with respect to the central filing system for farm products under the federal Food Security Act. The bill would authorize distribution of the master list via internet download and eliminate fees for those who access the list via internet download.
Other Uniform Laws Legislation
Alabama: SB 211, which would adopt the Uniform Certificate of Title for Vessels Act, passed the House as amended on 3/1/2022 and was returned to the Senate for concurrence.
Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)
Connecticut: Senate Bill 353 was introduced on 3/3/2022 to address security interests in digital assets. This bill would (i) define three categories of digital assets; (ii) classify digital assets as general intangibles; (iii) clarify what constitutes control of a digital asset; and (iv) provide for perfection of a security interest in a digital asset by control, possession or filing. The bill was assigned to the Joint Commerce Committee.
Idaho: HB 583, which would enact the “Digital Assets Act,” passed the House on 2/28/2022. 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 in the Senate Commerce and Human Resources Committee.
Indiana: The Senate concurred in House amendments to SB 351 on 3/2/2022. This bill would add new Chapter 11 to the state’s UCC. This bill originally focused on ownership, control and perfection of a security interest in virtual currency but was amended to instead apply the concepts to controllable electronic records. The bill is pending delivery to the governor.
Iowa: HB 2302, which addresses emerging technology, passed the House on 3/2/2022. This bill would provide that a record or signature shall not be denied legal effect because it is created or stored by means of distributed ledger technology or smart contract, as those terms are defined in the bill. The bill provides in a new code section that the ownership of the secure information remains with the person who provided the signature, not the distributed ledger technology owner, and repeals a similar provision. The bill is now pending in the Senate Commerce Committee.
Iowa: HB 2445, which would create new UCC Article 14, Controllable Electronic Records, passed the House with amendments on 3/2/2022. This bill 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 is pending committee assignment in the Senate.
Kentucky: House Bill 724 was introduced on 3/1/2022 to provide a regulatory framework for sandbox programs. The bill is to regulate designed to promote innovative goods and services using blockchain, cryptocurrency and other emerging technology. Committee assignment is pending.
New Jersey: Senate Bill 1756 was introduced on 2/28/2022 to enact the “Digital Asset and Blockchain Regulation Act.” This bill would (i) define “digital asset”; (ii) require licensing for those engaged in digital asset business activity; and (iii) give the state department of banking and insurance regulatory authority over digital asset business activities. The bill was assigned to the Senate Commerce Committee. This appears similar to AB 2371, which was introduced in early February.
Ohio: House Bill 585 was introduced on 3/1/2022 to address various emerging technology matters. This bill would (i) establish special purpose depository institutions; (ii) define digital consumer assets and digital securities as intangible personal property; (iii) define what constitutes control of a digital asset; (iv) provide for perfection of a security interest in virtual currency by control or possession; (v) authorize banks to provide digital asset custodial services; and (vi) provide for the formation of LLCs as decentralized autonomous organizations (DAOs). Committee assignment is pending.
Utah: HB 243, which would extend the state’s Regulatory Sandbox program to innovative use of new and emerging technology, including blockchain, passed the House on 2/28/2022. The bill then passed the Senate as amended on 3/2/2022 and was returned to the House for concurrence. The House concurred on 3/3/2022 and the bill is now pending delivery to the governor.
Utah: HB 335, which would create the Blockchain and Digital Innovation Task Force, passed the Senate as amended on 3/2/2022. The House concurred in the Senate amendments on 3/3/2022. The task force would develop knowledge and expertise regarding blockchain and related technologies. The task force would then make policy recommendations to the legislature. The bill is awaiting delivery to the governor.
Utah: House Bill 456 was introduced on 2/22/2022 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 bill passed the House on 2/28/2022. Committee assignment is pending in the Senate.
Utah: House Bill 485 was introduced on 2/25/2022 to amend the Uniform Electronic Transactions Act (UETA) to clarify that “electronic” includes “blockchain” for purposes of UETA. The bill also authorizes government entities to develop requirements for remote appearances and certification of documents through blockchain. Committee assignment is pending.
Virginia: HB 263, which would authorize banks to provide virtual currency custodial services, passed the Senate on 3/3/2022 and is pending delivery to the governor.
Wyoming: HB 70, which would establish civil and criminal penalties for the unlawful impersonation of a digital identity through electronic means, passed the Senate on 3/3/2022 and is now pending delivery to the governor.
Wyoming: SB 55, which would establish an insurance sandbox program for the use of emerging technology with innovative insurance products or services, passed the Senate on 2/28/2022. The bill is now pending in the House Corporations, Elections and Political Subdivisions Committee.
Wyoming: SB 56, which would authorize the use of any state approved type of virtual currency for the purchase of lottery tickets, passed the Senate on 2/28/2022. The bill is now pending in the House Appropriations Committee.
Business Organization Legislation
Virginia: HB 691, which would clarify provisions related to entity conversion in various business entity acts, passed the Senate on 3/3/2022 and is pending delivery to the governor.
Notary Legislation
New Mexico: The governor signed HB 180 on 3/1/2022 to repeal a portion of the Revised Uniform Law on Notarial Acts. The new law repealed a provision that permitted 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. The new law took effect immediately.
New York: The governor signed SB 7780 on 2/24/2022 to provide for both remote ink notarization and electronic notarization. Portions of the new law took effect immediately with other sections effective on 1/31/2023.
Rhode Island: House Bill 7731 was introduced on 3/2/2022 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.
Real-Estate-Recording-Related Legislation
Florida: SB 1016, which would address estoppel letters and lien satisfaction deadlines, passed the Senate on 3/2/2022 and is now pending in the House. The bill would (i) provide that a mortgagee or servicer must send an estoppel letter upon request of specified parties; (ii) set content requirements and procedures for estoppel letters; and (iii) expand 60-day satisfaction requirement upon payment in full to all liens..
Georgia: HB 974, which addresses methods of recording with the clerks, passed the House on 3/1/2022. The original bill provided that all deeds, mortgages and liens of all kinds be electronically filed with the clerk of the superior court but it was amended to require that clerks to continue to accept paper instruments across the counter. The bill is now in the Senate Judiciary Committee.
Illinois: HB 4270, which addresses the form and effect of a special warranty deed, passed the House on 3/3/2022 and is now pending in the Senate.
Kentucky: SB 135, which would 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, passed the Senate on 2/28/2022. Committee assignment is pending in the House.
Missouri: House Bill 2895 was introduced on 3/1/2022 to adopt the Uniform Real Property Electronic Recording Act (URPERA). Committee assignment is pending.
New Jersey: Assembly Bill 3000 was introduced on 2/28/2022 to authorize the termination of the realty transfer fees. The bill was assigned to the Assembly Housing Committee.
Utah: SB 184, which would require county recorders to provide for electronic recording of a plat and to accept an electronic document for the recording of a plat by 1/1/2023, passed the House on 3/3/2022 and is awaiting delivery to the governor.
Washington: HB 1376 (2021), which would repeal existing law regarding registered land and remove all lands from the title registration system, passed the Senate on 3/2/2022 as amended. The bill was returned to the House for concurrence.
Other Items/Legislation of Interest
New Jersey: Senate Bill 1785 was introduced on 2/28/2022 to allow municipalities to deliver property tax bills, permits and receipts by email. Committee assignment is pending.
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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.