Article 9 and lien-related legislation
Virginia: The governor signed House Bill 2184 on 3/26/2023 to establish a procedure for a settlement agent to release a specific piece of property from a judgment lien. The new law takes effect on 7/1/2023.
Other uniform laws legislation (includes the 2022 Amendments to the UCC with UCC Article 12―Controllable Electronic Records)
Arkansas: House Bill 1588, which would have enacted the 2022 Amendments to the UCC, including UCC Article 12―Controllable Electronic Records and related amendments, was withdrawn by the author on 3/29/2023.
Florida: House Bill 7049 was introduced on 3/27/2023 to add a definition for “central bank digital currency” to the state’s version of UCC § 1-201 and revising the UCC definition of “money” to exclude central bank digital currency. Committee assignment is pending.
Louisiana: House Bill 239 was pre-filed on 3/27/2023 to enact the 2022 Amendments to the UCC, including UCC Article 12―Controllable Electronic Records and related amendments. The bill was assigned to the House Commerce Committee. However, the bill was withdrawn from the Commerce Committee and then withdrawn from further consideration on 3/28/2023.
Massachusetts: House Bill 1112, which was introduced on 2/16/2023 but just updated with text this week, would enact the 2022 Amendments to the UCC, including UCC Article 12―Controllable Electronic Records and related amendments. Committee assignment is pending.
South Dakota: House Bill 1193, which would have enacted the 2022 Amendments to the UCC, was vetoed by the governor on 3/27/2023. The House sustained the governor’s veto the same day. In her veto message, the governor justified doing so for two reasons. The first was that the definition of “money” excluded cryptocurrencies like Bitcoin and other digital assets, which would make it more difficult to use cryptocurrency. The second was that the definition created the risk that the federal government could more easily adopt a central bank digital currency, which might become the only viable digital currency. The governor further said there was no reason to rush in adoption of the legislation and the state should wait until after other states experiment with this legislation.
Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)
Arkansas: House Bill 1799 was introduced on 3/30/2023 to regulate digital mining businesses and protect such businesses from discriminatory industry specific regulations and taxes. The bill was assigned to the House Advanced Communications and Information Technology Committee.
Massachusetts: Senate Bill 29, which was introduced on 2/16/2023 but just updated with text this week, would establish a special commission for purposes of making an investigation relative to blockchain technology to develop a master plan of recommendations for fostering the appropriate expansion of blockchain technology in the Commonwealth. Committee assignment is pending.
Business organization legislation
No developments to report this week.
Notary legislation
No developments to report this week.
Real estate recording-related legislation
Idaho: House Bill 238, which would adopt the Unfair Service Agreements Act, passed the Senate on 3/28/2023 and is pending action by the governor. The bill would prohibit the recording of unfair service agreements and provide remedies for a person with an interest in the property subject to such agreement.
Illinois: Senate Bill 2227, which would revise the Recorder Division of the Counties Code, passed the Senate on 3/28/2023 and is pending in the House. The bill would make several changes to recording office duties. It would allow for storage of records in a database or a book and allow a recorder to accept copies of signatures without labeling them as copies. The bill was also amended on 3/24/2023 to update the predictable fee schedule for counties of the first, second and third classes.
Nevada: Senate Bill 395 was introduced on 3/27/2023 to establish a registry maintained by the securities division of the secretary of state of all corporations and LLCs that purchase residential real property in the state. Corporations and LLCs would need to register with the securities division before purchasing any residential real property. The bill would also prohibit the recording of a deed to a corporation or LLC unless it includes the information about the company contained in the registry and includes a statement that the transferred property is not the primary residence of the owner. The bill was assigned to the Senate Judiciary Committee.
North Carolina: Senate Bill 445 was prefiled on 3/30/2023 to exempt certified copies of court-filed documents from the register of deeds document format requirements. Committee assignment is pending.
Ohio: Senate Bill 94 was introduced on 3/23/2023 to address state treasurer matters but included a provision that would require county recorders to implement electronic recording and make real estate records available online. The provision states that each county recorder, county auditor, and county engineers shall make available to the public a method for electronically recording instruments related to conveyances of real property that adheres to the standards governing conveyances of real property. In addition, each county recorder shall make available to the public on the county recorder’s web site electronic indexes for, and electronic versions of, all instruments recorded on or after January 1, 1980, although there are exceptions for certain document types. The electronic recording and online indexes must be available by 6/30/2025. The bill was assigned to the Senate Financial Institutions and Technology Committee.
Tennessee: Senate Bill 368, which would prohibit the recording of deceptive service agreements, set statutory damages for a violation and offer remedies for a person with an interest in the property subject to such agreement, passed both the Senate and the House on 3/30/2023. The bill is awaiting delivery to the governor.
Other items and 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.