Article 9 and Lien-Related Legislation
No developments to report this week.
Other Uniform Laws Legislation
Illinois: SB 2176, which would adopt the Uniform Electronic Transactions Act, passed the House on 5/26/2021 and is pending delivery to the governor.
Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)
Iowa: The governor signed SB 541 on 5/20/2021 to amend the state’s Uniform Electronic Transactions Act. The new law will clarify that (i) “contract” includes a smart contract or contract using distributed ledger technology; (ii) “electronic record” includes a record secured using distributed ledger technology; and (iii) “electronic signature” includes a signature secured using distributed ledger technology. New law takes effect on 1/1/2022.
Nebraska: The governor signed LB 649 on 5/25/2021 to adopt the Nebraska Financial Innovations Act. The new law adopts draft legislation for UCC Article 12 developed by the Uniform Law Commissioners Committee on the UCC and Emerging Technologies. In addition, it 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. Portions of the new law take effect on 10/1/2021 with the remainder taking effect on 7/1/2022.
Texas: The House concurred in Senate amendments to 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. If approved by the governor, the work group would recommend policies and state investments in connection with blockchain technology.
Texas: HB 4474, which would address virtual currency matters, passed the Senate on 5/26/2021 and is pending delivery to the governor. This bill, as amended during the legislative process, creates a new UCC Article 12 that will (i) define “virtual currency”; (ii) specify the conditions under which a person has control of virtual currency; and (iii) clarify the rights of a purchaser of virtual currency.
Business Organization Legislation
Iowa: The governor signed HB 844 on 5/24/2021 to amend the Iowa Business Corporations Act. The many amendment provisions include (i) revision of forms and filing fees; (ii) when resignation of a registered agent takes effect; (iii) provisions for domestication and conversion; and (iv) the establishment of benefit corporations. The new law took effect immediately.
Nevada AB 245, which would increase the fees a notary may charge for certain acts, passed the Senate on 5/20/2021 and is pending consideration by the governor. The bill also increases the fee charged to a person who wishes to operate a document preparation service from $50 to $100.
New Hampshire: House Bill 485, which originally dealt with police searches, was amended in the Senate to make changes to the state’s version of the Uniform Law on Notarial Acts to provide for electronic notarial acts and to adopt the Uniform Real Property Electronic Recording Act (URPERA). The bill passed the Senate on 5/27/2021 and was returned to the House for concurrence.
New York: Senate Bill 7088 was introduced on 5/27/2021 to temporarily authorize notarial acts to be performed remotely using audio visual technology. The bill was assigned to the Senate Finance Committee.
North Carolina: The governor signed SB 172 on 5/24/2021 to extend the emergency authority for remote notarial acts through the end of 2021. Portions of the new law took effect immediately with other sections taking effect on 7/1/2021.
Rhode Island: Senate Bill 931was introduced on 5/25/2021 to amend state notary law to permit remote notarization and recognize notarial acts performed under the law of a federally-recognized Indian tribe. The bill was assigned to the Senate Judiciary Committee. This appears similar to HB 6241, which was introduced in mid-April.
Iowa: The governor signed HB 527 on 5/20/2021 to grant counties the authority to amend their agreements with the Iowa County Recorders Association to provide for the ongoing implementation of the county land record information system. The new law takes effect 7/1/2021.
Nevada AB 325, which would provide for the recording of a certified paper copy of an electronic record, passed the Senate on 5/21/2021 and now under consideration by the governor.
New Hampshire: HB 485 was amended to adopt URPERA. See more details under Notary Legislation above.
Oregon: HB 2884, which would extend the deadline for recording certain partition plats, passed the Senate on 5/27/2021 and is pending delivery to the governor.
Texas: The governor signed SB 885 on 5/24/2021 to specify the effect of a quit claim deed. The new law clarifies will specify the effect of recording a quit claim deed on the question of good faith of a subsequent purchaser or creditor and as notice of any unrecorded conveyance, transfer or encumbrance. The new law takes effect on 9/1/2021.
Other Items/Legislation of Interest
Louisiana: HB 140, which would amend the rules of civil procedure to allow for electronic service of process, passed the Senate on 5/26/2021 and is pending delivery to the governor.
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.