Article 9 and Lien-Related Legislation
California: AB 1766, which would amend the definition of “driver’s license and identification card” set forth in the state’s UCC § 9-503(h), passed the Assembly on 5/26/2022 and is pending in the Senate. The amended definitions would include an identification card issued to a person who is unable to submit satisfactory proof that the applicant’s presence in the United States is authorized under federal law. Committee assignment is pending in the Senate.
Minnesota: HB 3400, which addresses fraudulent UCC filing, passed the Senate on 5/22/2022 and is pending consideration by the governor. The bill is substantially based on the hip-pocket amendments to UCC Article 9.
Other Uniform Laws Legislation
No developments to report this week.
Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)
California: AB 2781, which would require the Employment Development Department to study the feasibility of utilizing blockchain technology, passed the Assembly on 5/26/2022 and is pending in the Senate. .
Iowa: HB 2445, which would create new UCC Article 14, Controllable Electronic Records, passed the Senate on 5/23/2022. This bill is based on the draft version of UCC Article 12 produced by the Uniform Law Commission and American Law institution project on UCC and Emerging Technologies. The bill is pending delivery to the governor.
Louisiana: HCR 103, which would direct the Cash Management Review Board to meet, establish, and function as the Louisiana Digital Assets Working Group, passed the House on 5/24/2022. The Working Group will research, report, and make recommendations relative to the use of digital assets in the state and submit its findings to the state treasurer. The bill is now in the Senate Finance Committee.
Louisiana: HCR 104, which would direct the Department of Revenue to study the feasibility of accepting virtual currency as a form of payment of taxes, licenses, fees, penalties, and interest, passed the House on 5/25/2022. The bill is now in the Senate Revenue and Fiscal Affairs Committee.
New York: AB 9029, which would require certain disclosures in advertisements involving “virtual tokens,” as that term is defined in the bill, passed the Assembly on 5/23/2022 and sent to the Senate. However, the bill was quickly recalled by the Assembly and later amended on the Assembly floor. Further action is pending.
New York: Senate Bill 9410 was introduced on 5/24/2022 to require certain disclosures in advertisements involving “virtual tokens,” as that term is defined in the bill. The bill was assigned to the Senate Consumer Protection Committee. This bill appears similar to other pending bills, including, AB 9029.
Business Organization Legislation
North Carolina: See House Bill 1018 under Real-Estate-Recording-Related Legislation below.
New York: Senate Bill 9404 was introduced on 5/24/2022 to add a new section to the notary law that sets forth the duties of notaries with respect to instruments conveying residential real property. The bill was assigned to the Senate Finance Committee.
North Carolina: House Bill 1018 was introduced on 5/24/2022 to make changes to the state’s real estate laws. The bill would (i) abolish the rule against perpetuities; (ii) provide for recording a memorandum of an option to purchase, sell or right of first refusal; (iii) enhances the liability protections of a partner in a registered limited liability partnership. The bill was assigned to the House Judiciary Committee.
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 web site.