Article 9 and Lien-Related Legislation
Iowa: The governor signed SF 342 on 6/17/2021, which had been previously amended to include fraudulent UCC filing provisions from the hip-pocket amendments to Article 9. The fraudulent filing provisions take effect on 7/1/2021.
Michigan: House Bill 4694, which would amend forms provisions of UCC Article 9, passed the House on 6/15/2021 and is pending in the Senate. The bill replaces references to “correction statement” with “information statement” in non-uniform provisions of the state’s version of UCC § 9-520, which address fraudulent filing. The bill also clarifies that the forms acceptable under the state’s version of UCC § 9-521 are those promulgated by the American Law Institute and the Uniform Law Commission and adopted by the secretary of state.
Ohio: SB 49, which would create a statutory lien against commercial real estate in favor of a registered architect, landscape architect, professional surveyor or professional engineer for services provided under contract, passed the House as amended on 6/16/2021 and was returned to the Senate for concurrence.
Other Uniform Laws Legislation
Rhode Island: HB 5511, which would correct some drafting oversights from the state’s adoption of UCC Article 7, passed the House on 6/15/2021 and is now in the Senate Commerce Committee. The corrections add the official text to certain UCC Article 1 definitions. The bill also would amend the Article 1 definitions of “bearer” and “holder” to include a person in control of a negotiable electronic document of title. The bill would define “delivery” to include the transfer of control of a negotiable electronic document of title. Finally, the bill would add a definition for “document of title.”
Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)
North Carolina: HB 624, which would enact the North Carolina Regulatory Sandbox Act, passed the House on 6/16/2021 and is pending in the Senate. The bill would create a program to promote innovative FinTech services using emerging technology and to explore use of blockchain in state government. A similar bill, SB 470, passed the Senate on 6/14/2021 and is pending in the House.
Texas: The governor signed HB 4474 on 6/15/2021 to address virtual currency matters. This bill 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. The new law takes effect on 9/1/2021.
United States: House Bill 3723 was introduced on 6/4/2021 to direct the Consumer Product Safety Commission to establish a pilot program to explore the use of artificial intelligence and directs the Secretary of Commerce and the Federal Trade Commission to study and report on the use of blockchain technology and digital tokens. The bill was assigned to the House Energy and Commerce Committee.
Business Organization Legislation
California: Assembly Bill 889, which originally addressed supplemental nutrition assistance benefits and had passed the Assembly, was amended in the Senate on 6/21/2021 to substitute an unrelated new provision that addresses beneficial ownership. The substitute text would require corporations and LLCs that lease property to report beneficial ownership information to the secretary of state. Further committee assignment is pending in the Senate.
Notary Legislation
Florida: The governor signed HB 121 on 6/21/2021 to regulate notaries. This bill will allow employers to require use of certain technology, clarify online witnessing standards and require online notary providers to retain copies of AV recordings for certain period of time. The bill includes a number of other changes as well. The new law takes effect on 1/1/2022.
Maine: HB 1033a, which would authorize remote online notarization based upon model legislation created by the Mortgage Bankers Association and American Land Title Association, passed both the House and Senate on 6/17/2021. The Senate version included amendments so the bill is pending concurrence in the House.
Oregon: The governor signed SB 220 on 6/11/2021 to prescribe formalities for remote attestation of a writing. The new law took effect immediately.
Oregon: The governor signed SB 765 on 6/15/2021 to make permanent provisions related to tangible copies of electronic records. The new law allows a notary to certify a tangible copy of an electronic record and authorizes a county clerk to record a tangible copy of an electronic record certified by a notary. The new law took effect immediately.
United States: House Bill 3962 was introduced on 6/17/2021 to authorize notaries public to perform, and establish minimum standards for, electronic notarizations and remote notarizations that occur in or affect interstate commerce. The full text of the bill is not yet available. The bill was assigned to the House Judiciary Committee.
Real-Estate-Recording-Related Legislation
Oregon: The governor signed HB 2884 on 6/11/2021 to extend the deadline for recording certain partition plats. The new law takes effect on 1/1/2022.
Other Items/Legislation of Interest
No developments to report.
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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.