Article 9 and lien-related legislation
Florida: House Bill 27, which would adopt the Judgment Lien Improvement Act, passed the Senate on 4/27/2023 as a substitute for Senate Bill 1574 and was returned to the House. This bill would specify that payment intangibles, accounts, and the proceeds thereof are subject to judgment liens. The bill also would set the procedures related to judgment liens against titled motor vehicle and vessels and make various other changes to existing law. Further action is pending.
Montana: The House concurred in Senate amendments to House Bill 118 on 4/26/2023. This bill would provide that a warrant of distraint for unpaid taxes becomes a statewide lien against all monies of or due to the taxpayer. The bill is pending delivery to the governor.
Montana: The House concurred in Senate amendments to House Bill 477 on 4/24/2023. This bill would allow the secretary of state to charge a $25 fee for filing a UCC financing statement when the collateral is located within the boundaries of an Indian reservation and is subject to the laws of the governing body of the reservation. The bill also would treat entities formed under the law of a federally recognized Indian tribe as foreign entities under business entity law. The bill is pending delivery to the governor.
Other uniform laws legislation (includes the 2022 Amendments to the UCC with UCC Article 12-Controllable Electronic Records)
Alabama: House Bill 348 was introduced on 4/20/2023 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 Judiciary Committee. This appears to be the same bill as Senate Bill 231, which was also introduced on 4/20/2023 and reported in last week’s update.
Arizona: Senate Bill 1144, which originally addressed election issues, was amended in the House to strike the original text and replace it with provisions related to legal tender. The amended bill now provides that legal tender in the state consists of any medium of exchange authorized by the U.S. Constitution or Congress for the payment of debts, public charges, taxes, and dues, except for central bank digital currency. The bill further provides that a central bank digital currency may not be used for payment of any contract, security, or other instrument, including contracts related to commercial transactions. The bill is pending further action in the House.
Arizona: Senate Bill 1191, which originally addressed escrow agents, was amended in the House to provide that escrow disbursements may be made using distributed ledger technology but prohibiting settlement using a central bank digital currency. The bill is pending further action in the House.
Florida: Senate Bill 7054, which would address central bank digital currency, passed the Senate on 4/27/2023. This bill would add a definition for “central bank digital currency” to the state’s version of UCC § 1-201 and revise the UCC definition of “money” to exclude central bank digital currency. The bill is now pending in the House.
Montana: The Senate refused to concur in House amendments to Senate Bill 370 on 4/25/2023. This bill would enact the 2022 Amendments to the UCC. The bill is pending further consideration.
Nevada: Assembly Bill 231, which would enact the 2022 Amendments to the UCC, passed the Assembly on 4/20/2023 and was assigned to the Senate Judiciary Committee.
South Carolina: House Bill 4373 was introduced on 4/26/2023 to amend the state’s version of UCC § 1-201 to add a definition for “central bank digital currency” and prohibit banks from offering services relate to or conducting transactions in central bank digital currency. The bill was assigned to the House Labor, Commerce, and Industry Committee.
Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)
Oklahoma: House Bill 1600, which would adopt the Commercial Digital Asset Mining Act of 2023, passed the Senate as amended on 4/24/2023 and was returned to the House for concurrence. The bill would provide tax incentives for commercial digital mining operations by treating them in the same manner as historic forms of manufacturing or industrial processing.
Oklahoma: Senate Bill 750, which would adopt the Commercial Digital Asset Mining Act of 2023, passed the House as amended on 4/27/2023 and was returned to the Senate for concurrence. The bill would provide tax incentives for commercial digital mining operations by treating them in the same manner as historic forms of manufacturing or industrial processing.
Business organization legislation
Kansas: The governor signed House Bill 244 on 4/20/2023 to make various changes to the state business entity laws, including changes that facilitate the use of electronic communications and signatures. The new law takes effect upon publication.
No items to report this week.
Real estate recording-related legislation
Alabama: Senate Bill 228 was introduced on 4/20/2023 to prohibit the recording of unfair service agreements. The bill would (i) allow a recording officer to refuse to accept an unfair service agreement; (ii) provide that a service provider who violates the prohibition is liable to the affected party for statutory damages of $10,000; and (iii) provide remedies for any person with an interest in the real property. The bill was assigned to the Senate County and Municipal Government Committee.
Iowa: House Bill 475, which would prohibit unfair service agreements for residential real property, passed the Senate on 4/19/2023. The bill would allow a county recorder to refuse to record an unfair service agreement. The bill is now pending delivery to the governor.
Nevada: Assembly Bill 392, which would address unfair service agreements, passed the Assembly on 4/21/2023 and was assigned to the Senate Commerce and Labor Committee. This bill would (i) provide that deceptive service agreements for residential property are void and unenforceable; (ii) authorize a county recorder to refuse to record any such agreement; (iii) provide that any person who attempts to record such an agreement is guilty of a misdemeanor; and (iv) provide remedies for any person with an interest in the property.
New York: Senate Bill 6569 was introduced on 4/27/2023 to create a new felony for the crime of deed theft. Committee assignment is pending.
North Carolina: Senate Bill 445, which would exempt certified copies of court-filed documents from the register of deeds document format requirements, passed the Senate on 4/26/2023 and is pending in the House.
Oklahoma: The governor signed Senate Bill 78 on 4/24/2023 to authorize county clerks to provide certified copies of real estate records in electronic format. The new law takes effect on 11/1/2023.
Other items and legislation of interest
Missouri: Senate Bill 100 was amended in the House with a substitute that would allow the state treasurer to keep up to 1% of state funds invested in gold and silver. The bill would also require the state to accept gold and silver coinage as payment of any debt, tax, fee, or obligation owed the state. In addition, the bill provides that the state shall not require any payment to be made in the form of digital currency. Finally, the bill prohibits discrimination against digital mining businesses by political subdivisions of state government. The bill is pending further action in the House.
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.