Article 9 and Lien-Related Legislation
Arizona: The governor signed HB 2617 to amend the lien law on 5/19/2021. The final bill addresses disposition of proceeds from the sale of homestead property subject to a lien. The new law takes effect on 12/31/2021.
Iowa: Senate File 342 was amended on 5/18/2021 to incorporate provisions from two other bills that add fraudulent UCC filing provisions from the hip-pocket amendments to Article 9. The bill passed the Senate and the House concurred in the changes to the incorporated bills the same day. The bill is now pending delivery to the governor.
South Carolina: The governor signed HB 3884 on 5/17/2021 to provide for electronic submission of certificate of title for watercraft and outboard motors. This bill would also require use of the electronic titling system for dealers and lenders involved in the sale of watercraft and outboards and allow for the electronic retention and discharge of a lien. The new law takes effect on 7/1/2022.
Texas: HB 3794, which would provide for an oil and gas lien, passed the Senate on 5/19/2021 and is pending delivery to the governor. The bill provides the lien to secure the obligations of a first purchaser to pay the sales price. Each interest owner has an oil and gas lien to the extent of the interest owner’s interest in oil and gas rights. The lien would be automatically perfected without the need to file a financing statement or other record.
Other Uniform Laws Legislation
No developments to report this week.
Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)
Nebraska: LB 649, which would adopt the Nebraska Financial Innovations Act, passed the legislature on 5/20/2021. The current bill would adopt draft legislation for UCC Article 12 developed by the Uniform Law Commissioners Committee on the UCC and Emerging Technologies. In addition, the bill allows creation of a digital asset depository institution. Such institutions would be formed under the Nebraska Model Business Corporation Act and then chartered and subject to regulation by the Department of Banking and Finance. The bill is now pending delivery to the governor.
Nebraska: LR 196 was introduced on 5/18/2021 as a resolution to study the uses of blockchain technology in agricultural operations. The bill was assigned to the Agriculture Committee.
Texas: HB 1576, which would establish a work group on blockchain matters that will develop a master plan for the expansion of the blockchain industry in the state, passed the Senate as amended on 5/19/2021 and was returned to the House for concurrence. If enacted, the work group would recommend policies and state investments in connection with blockchain technology.
Business Organization Legislation
Maryland: The governor signed HB 647 on 5/18/2021 to eliminate the fee for filing articles of dissolution with the state department of assessments and taxation for certain business entities. The new law takes effect on 7/1/2021.
Texas: The governor signed SB 1523 on 5/15/2021, which amends limited liability company law to provide for protected series and registered series. The new law takes effect on 6/1/2022.
New York: Senate Bill 6816 was introduced on 5/18/2021 to authorize notaries public to remotely administer oaths to witnesses in legal proceedings. The bill was assigned to the Senate Finance Committee.
North Carolina: SB 172, which would extend the emergency authority for remote notarial acts through the end of 2021, passed the House as amended on 5/20/2021 and the Senate immediately concurred. The bill is now pending consideration by the governor.
South Carolina: The governor signed SB 631 on 5/18/2021 to enact the State Electronic Notary Act. The bill will (i) set qualifications for electronic notaries; (ii) provide procedures for electronic notarization; and (iii) require the electronic notary to keep a journal. The new law took effect immediately but will not be implemented until the secretary of state adopts administrative rules and approves technology vendors.
United States: Senate Bill 1625 was introduced on 5/13/2021 to authorize notary publics to perform remote notarial acts and establish standards for remote and electronic notarial acts. The details are pending and the text is not yet available. The bill was assigned to the Senate Judiciary Committee.
Iowa: HB 837, which would authorize the governing board of the county land record information system to collect a $3 fee per recorded document for using the system to process electronic documents for recording, passed the Senate as amended on 5/19/2021. The House concurred the same day and the bill is now pending delivery to the governor.
New Jersey: AB 3784, a carryover bill from 2020 designed to help prevent the recording of fraudulent deeds, passed the Assembly on 5/20/2021 and is now pending in the Senate. The bill provides that a person recording a deed transfer of real property must submit an affidavit of title; requires county recorder to send notice to the transferor of the recording and authorizes an additional $2 fee to cover the cost of such notice.
Other Items/Legislation of Interest
No developments to report this week.
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 website.