Legislative Developments 4-22-2022

Article 9 and Lien-Related Legislation

Arizona:  HB 2645, which would increase the penalty for a person who files a UCC record without authorization that the person knows contains a material misstatement or false claim from a misdemeanor to a class 3 felony, passed the Senate on 4/19/2022.  The bill is pending delivery to the governor.   

Minnesota: HB 3607 was amended on 4/21/2022 to add provisions that address fraudulent UCC filing.  The fraudulent filing provisions are based on the hip-pocket amendments to UCC Article 9.  The bill is now in the House Ways and Means Committee.  The fraudulent filing provisions of this bill appear similar to those in HB 3400 and SB 3920, both of which were introduced earlier this year. 

Nebraska:  The governor signed LB 1102 on 4/18/2022 to adopt the Nebraska Environmental Response Act.  This new law creates an environmental lien for cleanup costs on all of the responsible party’s real property in the state.  The lien must be filed with the register of deeds in each county where the responsible person owns real property.   The new law takes effect 3 months after the session adjourns.

Other Uniform Laws Legislation

No developments to report this week.

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

Tennessee:  The governor signed HB 2645 on 4/20/2022 to provide for the formation, conversion or qualification of an LLC as a decentralized organization.  The new law also provides that a membership interest in such an organization may be a digital asset.  The new law took effect immediately. 

Business Organization Legislation

Wisconsin:  The governor signed SB 566 (2021) on 4/15/2022 to adopt, with modifications, the most recent versions of the Uniform Limited Partnership Act and Uniform Limited Liability Company Act.  The bill will also make changes to the state’s partnership law and to the law governing business corporations and nonstock corporations.  The new law took effect upon publication on April 16, 2022. 

Notary Legislation

Arizona:  HB 2645, which is referenced in the Article 9 and Lien-Related Legislation Section above, also included provisions for notice to the secretary of state following a change of a notary public’s mailing, business or home address and that specify a notary public’s obligations following the loss, theft or compromise of a notary’s official journal or stamping device.  A notary public that fails to report as required could be subject to fines.  The bill also establishes a presumption when identity of a party to a notarized document is at issue and the official journal is lost, stolen or compromised.  The bill is pending delivery to the governor.   

Georgia:  The governor signed SB 96 (2021) on 4/18/2022 to provide for notary purposes that satisfactory evidence of identity of a document signer, oath taker or affirmant shall include a veterans health identification card.  The new law takes effect on 7/1/2022.     

Louisiana:  HB 903, which would change current law regarding the location of a remote notarial act, passed the House on 4/20/2022.  The bill provides that a remote online notarial act is deemed to be executed in the parish where the notary public is physically located at the time of the remote online notarization.  The remote notary must also have jurisdiction in the designated parish. The bill is now in the Senate Judiciary Committee.

Maine:  HB 1503, which adopts the Revised Uniform Law on Notarial Acts, including remote notary authorization for both electronic and tangible records, passed the Senate in concurrence with the House on 4/19/2022.  The governor then signed the bill on 4/21/2022.  The new law also includes both a journal and an examination requirement for notaries.   Notary provisions of the new law take effect on 7/1/2023.

Massachusetts: House Bill 4716 was introduced on 4/21/2022 to consolidate several pending bills intended to modernize notary services.  The bill includes formerly separate provisions for the regulation of electronic and virtual notarization, and the establishment of a commission on electronic notarization. The bill was assigned to the House Ways and Means Committee.

Real-Estate-Recording-Related Legislation

Mississippi:  The governor signed HB 1351 on 4/19/2022 to specify requirements for an affidavit of scrivener’s error related to a document affecting the title to real property.  The new law takes effect on 7/1/2022.     

Other Items/Legislation of Interest

No developments to report this week.

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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.