Legislative Developments 6-10-2022

Legislative Developments 6-10-2022

Article 9 and Lien-Related Legislation

No developments to report this week.

Other Uniform Laws Legislation

No developments to report this week.

Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)

Colorado: The governor signed HB 1053 on 6/7/2022 to direct the commissioner of agriculture to create and deploy an online program that educates agricultural producers about blockchain technology.  The new law takes effect 90 days after the legislature adjourns.  The original version of the bill would have adopted UCC Article 12 to address controllable electronic records but it was deleted from the bill during the legislative process.

Colorado: The governor signed SB 25 on 6/7/2022 to direct the state treasurer to study the use of security tokens for state capital financing.  The new law defines “Security Token” to mean a digital, liquid contract made verifiable and secured through the use of blockchain technology that establishes its owner’s right to a fraction of a financial asset, such as stock, bond, or certificate of participation.  The new law takes effect 90 days after the legislature adjourns. 

New York: AB 7389 (2021), which would provide for a three-year moratorium on cryptocurrency mining to mitigate the effects of such activities on climate change, passed the Senate on 6/2/2022 and is pending delivery to the governor.  The bill would allow cryptocurrency mining operations to operate only after completion of an environmental impact statement.

New York:  AB 9275, which would establish a cryptocurrency and blockchain study task force, passed the Senate on 6/3/2022 and is pending delivery to the governor.  The task force would provide the governor and the legislature with information on the effects of the widespread use of cryptocurrencies and other forms of digital currencies and their ancillary systems, including but not limited to blockchain technology. 

Business Organization Legislation

Ohio:  HB 556, which would revise non-profit corporation law, passed the House on 6/1/2022 and is now pending in the Senate.  The bill (i) clarifies qualifications for directors; (ii) amends provisions regarding committees; and (iii) provides for the effect of a certificate of good standing issued by the secretary of state. 

Notary Legislation

No developments to report this week.

Real-Estate-Recording-Related Legislation

Colorado: The governor signed SB 229 on 6/7/2022 to provide an additional circumstance where a public trustee may release a deed of trust without evidence that the original debt has been paid off. The new law provides that the holder of the original evidence of debt may request the release of a deed of trust without producing or exhibiting the original evidence of debt if the holder (i) agrees to indemnify and defend the public trustee against any claim for damages resulting from the action of the public trustee taken in accordance with the request; (ii) provides the public trustee a current address for the original grantor, assuming party, or current owner when requesting the release of the deed of trust; and (iii) files the request for the release of the deed of trust electronically via the county’s electronic recording system. The new law takes effect 90 days after the legislature adjourns.

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.