Legislative Developments 6-24-2022

Legislative Developments 6-24-2022

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.)

California: SB 786, which originally addressed Santa Clara Water District matters, was amended on 6/14/2022 to replace the original text with a provision that would authorize a county recorder to issue a certified copy of a birth, death, or marriage record by means of blockchain technology. The bill is now in the Assembly Privacy and Consumer Protection Committee.   

Hawaii: The governor signed SB 2695 on 6/17/2022 to establish a blockchain and cryptocurrency task force.  The task force will review the scope of blockchain and cryptocurrency across the country and then report back to the legislature with any findings, recommendations and proposed legislation. The new law took effect immediately.

Iowa: The governor signed HB 2443 on 6/13/2022 to provide that a record or signature shall not be denied legal effect because it is created or stored by means of distributed ledger technology or smart contract. The legislation also provides in a new code section that the ownership of the secure information remains with the person who provided the signature, not the distributed ledger technology owner, and repeals a similar provision. The new law takes effect on 7/1/2022.

Iowa: The governor signed HB 2445 on 6/13/2022 to create new UCC Article 14, Controllable Electronic Records. This bill is based on the draft version of UCC Article 12 produced by the Uniform Law Commission and American Law institution project on UCC and Emerging Technologies. The new law takes effect on 7/1/2022.

Louisiana: The governor signed HB 802 on 6/15/2022 to authorize banks to provide custodial services for digital assets. The new law takes effect 8/1/2022.   

Michigan: SB 888, which would establish the blockchain and cryptocurrency commission, passed the Senate on 6/23/2022 and is pending in the House. The commission would investigate blockchain and cryptocurrency to develop a master plan of recommendations for fostering an expansion of blockchain technology and the cryptocurrency industry.     

United States: House Bill 8065 was introduced on 6/14/2022 to adopt the National R&D Strategy for Distributed Ledger Technology Act of 2022.  The act would authorize the development of a national strategy for the research and development of distributed ledger technology. The bill is pending in the House Science, Space and Technology Committee. 

United States: Senate Bill 4356 was introduced on 6/7/2022 to adopt the “Lummis-Gillibrand Responsible Financial Innovation Act.” This Act provides for a wide scope of digital asset regulation. Among other things, the Act would (i) define “digital assets” for purposes of the Act; (ii) provide for federal taxation of digital assets and activities; (iii) provide for treatment of digital assets in bankruptcy; (iv) increase consumer protection; (v) authorize a depository institution to conduct activities with stablecoins; (vi) require various government agencies to develop standards and guidelines for executive agencies which require adequate security measures for use of the Chinese digital yuan on government information technology devices; and (vii) provide for banking innovation with respect to digital assets.  The bill is pending in the Senate Finance Committee. 

Business Organization Legislation

Delaware: SB 284, which would make changes to the Statutory Trust Act, passed the House as amended on 6/23/2022 and was returned to the Senate for concurrence.

Notary Legislation

Delaware: SB 262, which would adopt the Revised Uniform Law on Notarial Acts (RULONA), passed the Senate on 6/22/2022 and is pending in the House. The bill includes the recent amendments to RULONA that permit remote notarization and includes remote notarization of tangible documents. The bill also requires a notary to keep a journal of all notarial acts and provides new licensing procedures for notaries public.

Rhode Island: HB 7363, which would amend state notary law to permit remote notarization and recognize notarial acts performed under the law of a federally recognized Indian tribe, passed the House on 6/17/2022.  The bill was promptly taken up and passed by the Senate Judiciary Committee on 6/21/2022.

Real-Estate-Recording-Related Legislation

Louisiana: The governor signed HB 57 on 6/18/2022 to address issues related to homeowners association liens. The new law shortens the time in which a homeowners association must file suit to enforce a lien from 5 years to 1 year and provides for a demand notice requirement to the property owner. The new law takes effect on 8/1/2022.

South Carolina: The governor signed SB 5150 with line item vetoes on 6/22/2022.  The portion of the bill that passed will require any county that meets certain criteria to use the local government fund to implement an electronic or e-filing system in the county’s Register of Deeds Office for the recording of documents and for payment of associated fees. The Register of Deeds would monitor, utilize, and maintain the system. The new law takes effect 7/1/2022.   

Other Items/Legislation of Interest

No developments to report this week.    

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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.