Article 9 and Lien-Related Legislation
New York: SB 760, which would amend UCC § 9-611(f) to add new notice requirements prior to taking any steps to dispose of collateral for a reverse cooperative apartment loan, passed the Senate on 6/8/2021. The bill is now in the Assembly Ways and Means Committee.
Texas: The governor signed HB 3794 on 6/4/2021 to provide for an oil and gas lien. The lien will 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. The new law takes effect on 9/1/2021.
Other Uniform Laws Legislation
No developments to report this week.
Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)
Connecticut: SB 1039, which would address government incorporation of blockchain technology, passed the House on 6/9/2021 and is pending delivery to the governor. The bill would require the Department of Administrative Services to issue a request for information for the incorporation of blockchain technology to make a state administrative function more efficient or cost effective. In addition, the bill directs the Department of Economic and Community Development to develop a plan to promote existing remote work workspaces and incentivize the creation of new remote work workspaces.
Louisiana: House Resolution 213 was introduced on 6/9/2021 and adopted on 6/10/2021 to direct the House Commerce Committee to study the current and potential use of blockchain technology and cryptocurrency in the state.
New York: SB 6486, 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 6/8/2021. The bill would allow cryptocurrency mining operations to operate only after completion of an environmental impact statement. The bill is now in the Assembly Environmental Conservation Committee.
Texas: The governor signed HB 1576 on 6/7/2021 to establish a work group on blockchain matters that will develop a master plan for the expansion of the blockchain industry in the state. The work group will recommend policies and state investments in connection with blockchain technology. The new law takes effect on 9/1/2021 and the work group must hold its first meeting by 11/1/2021.
Business Organization Legislation
Delaware: SB 114, which would update the Limited Liability Company Act, passed the House on 6/9/2021 and is pending delivery to the governor. The updates (i) provide a safe harbor procedure for ratifying acts or transactions; (ii) clarify when a member is entitled to obtain information for a certain purpose; (iii) provide authority for a member or manager to delegate irrespective of conflict of interest; (iv) provide manner in which an LLC may become a public benefit LLC; and (v) provide that the LLC agreement of a public benefit LLC must state the public benefit.
Delaware: SB 116, which would update the Revised Uniform Limited Partnership Act, passed the House on 6/9/2021 and is delivery to the governor. The updates (i) provide a safe harbor procedure for ratifying acts or transactions; (ii) clarify when a limited partner is entitled to obtain information for a certain purpose; (iii) provide authority for a general partner to delegate irrespective of conflict of interest; (iv) provide manner in which an LP may become a public benefit LP; and (v) provide that the LP agreement of a public benefit LP must state the public benefit.
New York: SB 1780, which would provide for electronic and remote notarization, passed the Assembly on 6/8/2021 and is pending delivery to the governor.
Iowa: The governor signed HB 837 on 6/8/2021. The bill originally would have authorized 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. However, it was amended to remove that provision and now designates how the current $1 fee per document can be used and prohibits recorders from charging fees not authorized by statute. The new law takes effect on 7/1/2021.
Other Items/Legislation of Interest
Louisiana: The governor signed HB 140 on 6/4/2021 to amend the rules of civil procedure to allow for electronic service of process. The new law take effect on 1/1/2022.
Ohio: House Bill 342 was introduced on 6/7/2021 to allow county recorders to establish a separate index for recording vaccination record cards. Committee assignment is pending.
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.