Article 9 and lien-related legislation
No developments to report this week.
Other uniform laws legislation (includes the 2022 Amendments to the UCC with UCC Article 12-Controllable Electronic Records)
Alabama: House Bill 408 was introduced on 5/2/2023 to 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 was assigned to the House Financial Services Committee.
Colorado: The governor signed Senate Bill 90 on 5/1/2023 to enact the 2022 Amendments to the UCC. The new law takes effect 90 days after the legislature adjourns.
Florida: Senate Bill 7054, which would address central bank digital currency, passed the House on 5/2/2023. 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 delivery to the governor.
Indiana: The governor signed Senate Bill 468 on 5/4/2023 to enact the 2022 Amendments to the UCC. The new law takes effect 7/1/2023.
Ohio: House Bill 163 was introduced on 5/1/2023 to 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. Committee assignment is pending.
Oregon: House Bill 2330, which would adopt the Uniform Voidable Transactions Act, passed the Senate on 5/1/2023 and is pending delivery to the governor.
Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)
Montana: The governor signed Senate Bill 178 on 5/2/2023 to protect both business and home digital asset mining. This new law will (i) prohibit utilities from charging higher energy rates for digital asset mining operations; (ii) prohibit local governments from imposing additional taxes on digital assets used as payment; and (iii) limit a local government’s power to prohibit digital asset mining or impose additional requirements on such operations. The new law took effect immediately.
Business organization legislation
Alabama: Senate Bill 245 was introduced on 4/25/2023 to revise the Alabama Nonprofit Corporation Law to reflect the national standards set by the Model Nonprofit Corporation Act of 2021 and the Delaware General Corporation Law. It would also make conforming changes throughout the Alabama Business and Nonprofit Entity Code to effectuate the changes to the Alabama Nonprofit Corporation Law and conform with the other entities governed by the Alabama Business and Nonprofit Entity Code. The bill was assigned to the Senate Judiciary Committee.
Indiana: The governor signed House Bill 1581 on 5/1/2023 to amend certain state business organization laws. When it takes effect, this new law will (i) apply certain business laws to business trusts and agricultural cooperatives; (ii) remove the requirement that articles of incorporation for agricultural cooperatives be acknowledged before a notary; and (iii) remove a requirement for licensure of principal managers. The new law takes effect 7/1/2023.
Iowa: House Bill 397, which would require that identity proofing used by a notary for purposes of performing remote notarial acts must conform to standards established by the secretary of state, passed the Senate on 4/25/2023 and is awaiting delivery to the governor.
Colorado: Senate Bill 153, which would extend the sunset provision for the Revised Uniform Law on Notarial Acts by nine years from 9/1/2023 until 9/1/2032, passed the House as amended on 4/29/2023 and was returned to the Senate for concurrence. The Senate concurred in the House amendments on 5/2/2023. The bill would also make changes to the statutory fees for notarial acts and other changes regarding certificates and interpreters. The bill is now pending delivery to the governor.
North Carolina: House Bill 394, which would provide that notarial acts performed by a person pursuant to federal law shall be treated as notarial acts by a person commissioned as a notary under North Carolina law, passed the House on 5/3/2023 and is pending in the Senate.
Texas: Senate Bill 1780, which would make changes to online notarization requirements and procedures, passed the Senate on 5/1/2023. The bill would also establish procedures for online notarization of tangible documents. Committee assignment is pending in the House.
Real estate recording-related legislation
Alabama: Senate Bill 228, which would prohibit the recording of unfair service agreements, passed the Senate on 4/27/2023. The bill would (i) allow a recording officer to refuse to accept unfair service agreements; (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 is now in the House Commerce and Small Business Committee.
Florida: Senate Bill 286, which would require that an assignment of leases and rents be perfected against the mortgagor in addition to third parties under certain conditions, passed the House on 5/2/2023. The bill also makes other changes regarding assignments of leases and rents. The bill is pending delivery to the governor.
Iowa: The House concurred in Senate amendments to House Bill 111 on 5/1/2023. This bill would exempt deeds that transfer assets to the beneficiaries of a trust from the real estate transfer tax. The bill is pending delivery to the governor.
Iowa: The governor signed House Bill 475 on 4/28/2023 to prohibit unfair service agreements for residential real property. The new law will allow a county recorder to refuse to record an unfair service agreement. The new law takes effect on 7/1/2023.
Other items and legislation of interest
Iowa: The governor signed House Bill 553 on 5/3/2023 to create affirmative defenses for entities using cybersecurity programs. The new law provides such defenses against tort claims that allege a failure to implement reasonable security controls resulted in a data breach concerning personal information or restricted information. The new law takes effect on 7/1/2023.
Texas: House Bill 19, which would create a business court, passed the House on 5/2/2023. The business court would have civil jurisdiction concurrent with district courts for certain actions related to company governance in which the amount in controversy exceeds $5 million and certain actions related to commercial transactions where the amount in controversy exceeds $10 million. Committee assignment is pending in the Senate.
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.