Article 9 and Lien-Related Legislation
Arizona: HB 2617, which would amend the lien law, passed the House on 3/1/2021 and is pending in the Senate Finance Committee. The bill provides that a civil judgment lien retroactively extends to the judgment debtor’s homestead and exempt property located in the county in which the lien is recorded. However, the amendments exempt homestead property from involuntary sale.
Arkansas: HB 1273, which would establish the Oil and Gas Owners Lien Act of 2021, passed the Senate on 3/4/2021 and is now awaiting consideration by the governor. If enacted, the bill would create a lien in favor of each owner of oil and gas to secure the obligations of a first purchaser to pay the sale price. The lien would be perfected automatically without the need to file a financing statement or other record and have a super-priority over other liens.
Georgia: HB 480, which would amend the mechanics and materialmen lien law to provide a lien for the services of registered interior designers, passed the House on 3/3/2021 and is pending in the Senate.
Idaho: House Bill 275 was introduced on 3/2/2021 to amend the content requirements for a claim of lien under the mechanics and materialmen lien law to include a copy of the applicable agreement between the claimant and owner and proof of service on the owner. The bill was assigned to the House Business Committee.
Iowa: House Study Bill 266 was introduced on 3/2/2021 and includes provisions that would require the filing office to reject a UCC record if the filing officer determines that the record was not created pursuant to the UCC, or was otherwise intended to hinder, harass or otherwise wrongfully interfere with any person. In addition, the filing office would be required to reject a record where the same person is listed as debtor and secured party, if the record described collateral not within the scope of applicable law or was for a purpose other than a transaction within the scope of the UCC. The provision also would require the filing office to remove a record that was wrongfully filed under the above criteria. The study bill passed the House Public Safety Committee on 3/4/2021. However, it is expected that the fraudulent filing provisions will be either deleted or replaced before the study bill advances.
Iowa: Senate Study Bill 1151 was approved in committee and then introduced in the Senate on 3/1/2021 as Senate Bill 486. This bill would create a warehouse drying and storage lien, which would be an agricultural lien within the scope of UCC Article 9. In addition, the bill would create a central notification system under the federal Food Security Act to be certified by the U.S. Secretary of Agriculture. The bill is pending further committee assignment in the Senate.
Minnesota: House Bill 1869 was introduced on 3/4/2021 to address secretary of state matters. Section 11 of the bill includes fraudulent UCC filing provisions based on the hip-pocket amendments to UCC Article 9. The bill was assigned to the House State Government, Finance and Elections Committee.
Mississippi: HB 277, which would amend several state laws to recognize tribal identification cards as the equivalent of a state-issued driver’s license or ID card, passed the Senate on 3/4/2021 and is now awaiting transmittal to the governor. The bill includes an amendment to the individual debtor name requirements for purposes of a financing statement in the state’s version of UCC § 9-503(a)(4). The amendment provides that if the debtor furnishes a valid identification card issued by a federally recognized Indian tribe or band that contains a color photograph and the card holder’s legal name (note – it is not clear from the text how a lender could make that determination), residence address and date of birth that has not expired, then the financing statement is sufficient if it provides the name of the individual indicated on such tribal identification card.
Virginia: The House concurred in Senate amendments to HB 2099, which addresses limitations for bringing an action to enforce a judgment. The bill would reduce the period for enforcement of certain judgment liens. The bill is now awaiting consideration by the governor.
Other Uniform Laws Legislation
Illinois: Senate Bill 2176 was introduced on 2/26/2021 to adopt the Uniform Electronic Transactions Act. Committee assignment is pending. This appears similar to HB 3205, which was introduced the week before.
Maine: House Bill 661 (LD 905) was introduced on 3/4/2021 to enact the Uniform Voidable Transactions Act. Committee assignment is pending.
New York: SB 297, which would have added new UCC Article 12 to address discontinuance of LIBOR was amended in the Senate Judiciary Committee on 3/1/2021. The committee amendments retain LIBOR provisions but move them to new Article 18-C of the general obligation laws rather than placing them in the UCC.
Rhode Island: Senate Bill 451 was introduced on 3/4/2021 to correct some drafting oversights from the state’s adoption of UCC Article 7 by adding official text to certain UCC Article 1 definitions. The bill amends the Article 1 definitions of “bearer” and “holder” to include a person in control of a negotiable electronic document of title. The bill also defines “delivery” to include the transfer of control of a negotiable electronic document of title. Finally, the bill adds a definition for “document of title.” This appears to be the Senate companion to HB 5511, which was introduced last month. The bill was assigned to the Senate Commerce Committee.
Wyoming: HB 64, which would amend the Uniform Fraudulent Transfer Act, passed the House on 3/3/2021. The amendments would shorten the time period for extinguishing certain claims and other actions related to fraudulent transfers. The bill is now pending in the Senate.
Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)
Iowa: Senate Bill 541 was introduced on 3/4/2021 to amend the Uniform Electronic Transactions Act to clarify (i) that “contract” includes a smart contract or contract using distributed ledger technology; (ii) that “electronic record” includes a record secured using distributed ledger technology; and (iii) that “electronic signature” includes a signature secured using distributed ledger technology. This is a successor bill to SB 303, which was introduced earlier in the session. Committee assignment is pending.
Kentucky: HB 230, which would add a new section to state law that provides tax breaks for commercial mining of cryptocurrency, passed the House on 3/3/2021. The purpose is to take advantage of the state’s affordable electricity supply to become a national leader in commercial mining of cryptocurrency. Committee assignment is pending in the Senate.
Kentucky: SB 134, which would address virtual currency for purposes of the Kentucky Money Transmitters Act of 2006, passed the Senate on 3/4/2021 and is pending in the House. This bill (i) deletes definition of “monetary value” and instead defines “medium of exchange” to include virtual currency; and (ii) defines “virtual currency.”
Kentucky: SB 255, which would provide incentives for commercial mining of cryptocurrency, passed the Senate on 3/3/2021 and is pending in the House. This appears related to HB 230, which was introduced in early January.
Ohio: House Bill 177 was introduced on 3/4/2021 to provide that a governmental entity may utilize distributed ledger technology, including blockchain technology, in the exercise of its authority. Committee assignment is pending.
Texas: House Bill 2199 was introduced on 2/24/2021 to establish the Digital Identity Workgroup. This group shall develop recommendations for the use of digital identity in TX and identify optimal policies and state investments related to digital identity technology. Committee assignment is pending.
Utah: HB 217, which provides for a regulatory sandbox program for innovative services, passed the Senate on 3/3/2021 and is awaiting transmittal to the governor.
Wyoming: HB 43, which would make certain amendments to state law regarding digital assets, passed the House on 3/3/2021. The bill would (i) amend the definition of “digital assets”; (ii) amend provisions for perfection of a security interest in digital assets; and (iii) establish what constitutes possession of a digital asset. The bill is now pending in the Senate.
Business Organization Legislation
Alabama: SB 96, which would clarify when provisions of the Alabama Business and Nonprofit Code supersede the general provisions of Chapter 1 of the code, passed the Senate on 3/2/2021 and is now in the House State Government Committee.
Colorado: HB 1124, which is intended to facilitate electronic business activity, passed the House on 3/3/2021. The bill includes numerous changes to the business organization laws for electronic meetings of the board of directors and shareholders. In addition, the bill would amend existing laws to authorize delivery of notices by electronic means. The bill is now pending in the Senate.
Iowa: House Bill 681 was introduced on 2/24/2021 to amend the Iowa Business Corporations Act. The many amendment provisions include (i) revision of forms and filing fees; (ii) when resignation of a registered agent takes effect; (iii) provisions for domestication and conversion; and (iv) the establishment of benefit corporations. The bill was assigned to the House Ways and Means Committee. This appears to be similar to SB 266 (originally Senate Study Bill 1056), which was introduced in the Senate in January.
Kansas: HB 2391, which would provide that business entities shall file a written business information report biennially, passed the House on 3/2/2021. The bill was assigned to the Senate Transparency and Ethics Committee.
Oklahoma: SB 228, which would amend the state General Corporation Act to permit electronic transmission of consents and several other changes, passed the Senate on 3/1/2021 and is pending committee assignment in the House.
South Carolina: House Bill 4008 was introduced on 3/2/2021 to enact the South Carolina Uniform Partnership Act of 2021. The bill was assigned to the House Judiciary Committee.
Notary Legislation
Arizona: HB 2828, which would have set a maximum fee of $25 that a notary may charge for a remote online notarial act, passed the House on 3/3/2021 as amended. The amendment removed the $25 limit in the original draft of the bill. The bill is now pending in the Senate Finance Committee.
Connecticut: House Bill 6604 will be introduced today, 3/5/2021, to enact the Revised Uniform Law on Notarial Acts, including remote notary provisions. The bill was assigned to the Joint Commerce Committee.
Florida: House Bill 121 was introduced on 3/2/2021 to regulate notaries by allowing employers to require use of certain technology, clarifying online witnessing standards and requiring online notary providers to retain copies of AV recordings for certain period of time. The bill was assigned to the House Judiciary Committee. A similar bill was introduced in the Senate as SB 228.
Florida: House Bill 483 was introduced on 3/2/2021 to make changes to the notary law that (i) revise the definition of “online notarization;” (ii) provide that supervising the witnessing of an online electronic record by a notary is a notarial act that requires the notary to comply with the same procedures for online notarization by a principal; and (iii) revise various forms. The bill was assigned to the House Judiciary Committee. A similar bill was introduced in the Senate as SB 848.
Georgia: HB 334, which would provide for remote online notaries and notarization, passed the House on 3/3/2021. If enacted, the bill would; (i) direct the GSCCCA to establish standards for remote notarization; (ii) create an electronic notary journal requirement; (iii) clarify that clerks have no duty to examine the circumstances or methods of witnessing on documents submitted for recording; and (iv) provide that witness signatures can be electronic and performed using remote online technology. The bill is now pending in the Senate.
Illinois: Senate Bill 1583 was introduced on 2/26/2021 to amend the Illinois Notary Public Act. The amendments include (i) updated definitions, including electronic-related terms; (ii) establishment of a separate electronic notary commission; (iii) a new education requirement for first-time notaries, electronic notaries and notaries renewing an electronic commission; (iv) a requirement for an electronic notary to register the electronic notarization technology with the secretary of state; (v) a journal requirements; (vi) requirements for remote notarization and electronic technology; and (vii) various electronic form requirements. The bill appears similar SB 97, which was introduced on 2/3/2021. Committee assignment is pending.
Illinois: Senate Bill 2495 was introduced on 2/26/2021 to provide penalties for any person who performs a notarial act concerning election nominating papers, petitions of objections to nominating papers, or certificates of withdrawal of candidacy, and is not otherwise authorized to perform notarial acts. Committee assignment is pending.
Kansas: SB 106, which would adopt the Revised Uniform Law on Notarial Acts, passed the Senate on 3/2/2021. The bill includes remote notary provisions. Committee assignment in the House is pending.
Maine: House Bill 660 (LD 904) was introduced on 3/4/2021 to address remote notarial acts under emergency orders by adopting RULONA provisions. Committee assignment is pending.
Maine: Senate Bill 154 (LB 810) was introduced on 3/3/2021 to examine the experiences of notaries public who have been allowed to remotely notarize documents pursuant to the Governor’s executive orders issued during the state of emergency and determine whether to continue the authorization of remote notarization of documents under limited circumstances. Committee assignment is pending.
South Carolina: Senate Bill 631 was introduced on 3/2/2021 to enact the South Carolina Electronic Notary Act. The bill would (i) set qualifications for electronic notaries; (ii) provide procedures for electronic notarization; and (iii) require the electronic notary to keep a journal. The bill was assigned to the Senate Family and Veterans Services Committee.
South Dakota: SB 193, which would amend certain remote notarization provisions in state law, passed the House on 3/3/2021. The bill would clarify the meaning of “personal knowledge” and “video communication technology,” as well as provide a new certificate of acknowledgement for use with video communication technology. The bill is now awaiting transmittal to the governor.
North Carolina: House Bill 196 was introduced on 3/2/2021 to extend the emergency authority for remote notarial acts through the end of 2021. The bill was quickly taken up and passed the House on 3/3/2021 and passed by the Senate on 3/4/2021. The bill is now awaiting action by the governor. A similar bill was introduced in the Senate on 3/2/2021 as SB 172.
West Virginia: Senate Bill 469 was introduced on 2/26/2021 to permit the personal appearance before a notary by video technology. The bill was assigned to and then passed by the Senate Judiciary Committee.
Real-Estate-Recording-Related Legislation
Arkansas: The House concurred in Senate amendments to HB 1183 on 3/2/2021, which would authorize county clerks to accept payment of recording and other fees by credit card and allow the clerk to assess a transaction fee to cover the costs. The governor signed the bill on 3/4/2021 and it takes effect on the 91st day after the legislature adjourns sine die.
Florida: House Bill 31 was introduced on 3/2/2021 to make changes to the structure for fees that a county clerk may charge for various services, including certification of documents. The bill was assigned to the House Judiciary and Appropriations committees. A similar bill was introduced in the Senate as SB 382.
Hawaii: HB 244, which would amend the data required for land recordation by the bureau of conveyances, passed the House on 3/4/2021. Specifically, it amends the data required for a request to de-register registered land, including the requirement to include a map and description prepared by a licensed surveyor. Committee assignment is pending in the Senate.
Illinois: Senate Bill 2021 was introduced on 2/26/2021 to authorize non-standard document fees in counties that have adopted a predictable fee schedule. Committee assignment is pending.
Minnesota: House Bill 1733 was introduced on 3/1/2021 to authorize counties to collect an additional $25 soil and water conservation district fee upon the recording of a mortgage. The bill was assigned to the House Environment and Natural Resources Finance and Policy Committee.
New York: Senate Bill 5376 was introduced on 3/3/2021 to impose an additional tax on each deed, instrument or transaction for the transfer of one to three unit residential property if made within 2 years from the prior conveyance of the property. The tax imposed could be up to 65% of the difference between the current sale price and the prior sale price. The bill also imposes additional taxes on one to three unit residential properties valued at $1 million or more. The bill was assigned to the Senate Cities Committee.
Texas: House Bill 2414 was introduced on 2/26/2021 to prohibit a county clerk from recording real estate documents unless the person submitting documents in person first presents a photo ID to the clerk. Under current law, only clerks in counties of 3.3 million or more population may require an in-person submitter to show ID. This bill makes it mandatory statewide. Committee assignment is pending.
Texas: Senate Bill 885 was introduced on 3/1/2021 to specify the effect of recording a quit claim deed on the question of good faith of a subsequent purchaser or creditor and as notice of any unrecorded conveyance, transfer or encumbrance. Committee assignment is pending.
Vermont: HB 199, which would address challenges to recorded documents under the emergency notary rules, passed the House on 2/26/2021. The bill would provide that a power of attorney made for the purpose of conveying, leasing, mortgaging, or affecting any interest in real property that has been acknowledged and signed in the presence of at least one witness shall be valid, notwithstanding its failure to comply with certain statutory requirements or the Emergency Administrative Rules for Remote Notarial Acts adopted by the Vermont Secretary of State, unless within three years after recording, an action challenging its validity is commenced and a copy of the complaint is recorded in the land records of the town where the power of attorney is recorded. If enacted, the provision would not apply to a power of attorney obtained by fraud or forgery. The bill is now pending in the Senate.
Wyoming: House Bill 262 was introduced on 3/3/2021 to impose a statewide recordation tax on deeds. The tax would be based on the value of the property and be imposed at the rate of 2% of the value over $500k. Committee assignment is pending.
Other Items/Legislation of Interest
Florida: House Bill 35 was introduced on 3/2/2021 to authorize web site publication of legal notices and to require government agencies to notify residents concerning alternative legal notice delivery methods. The bill was assigned to the House Judiciary Committee.
Kentucky: SB 162, which would reorganize the secretary of state office, passed the Senate on 2/26/2021. The bill would divide the SOS into three sections, each with an executive director appointed by the secretary. These include: the Office of Administration, the Office of Elections and the Office of Business Services. The Office of Business Services would be responsible for all functions related to business filings, including business entity filings and filings under the Uniform Commercial Code, business records, trademarks and service mark registration, notary appointments, and apostilles. The bill is pending committee assignment in the House.
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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.