Article 9 and lien-related legislation
Florida: The governor signed Senate Bill 978 on 6/20/2023 to amend the state’s version of UCC § 9-108. The amendment provides that a collateral description only by type is not sufficient for certain accounts related to proceeds from insurance, disability, unemployment, and other benefits. The new law took effect immediately.
Other uniform laws legislation (includes the 2022 Amendments to the Uniform Commercial Code (UCC) with UCC Article 12-Controllable Electronic Records)
Alabama: The governor signed House Bill 348 on 6/14/2023 to enact the 2022 Amendments to the UCC. The new law takes effect on 7/1/2024.
Delaware: Senate Bill 157, which would enact the 2022 Amendments to the UCC, passed the Senate on 6/15/2023 and is pending in the House.
New Hampshire: The House concurred in Senate amendments to House Bill 584 on 6/15/2023. This bill would make updates to the prior version of the 2022 Amendments to the UCC enacted last year to conform with the official text. The bill is pending delivery to the governor.
Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)
Arizona: The governor signed Senate Bill 1191 on 6/20/2023 to provide that escrow disbursements may be made using distributed ledger technology but prohibiting settlement using a central bank digital currency. The new law takes effect 91 days after the legislature adjourns.
Louisiana: The governor signed Senate Bill 185 on 6/13/2023 to change license requirements and provide for regulation of virtual currency businesses. The new law took effect immediately.
Pennsylvania: House Bill 1402 was introduced on 6/13/2023 to regulate business advertisements related to digital assets and blockchain technology. This bill would amend the Pennsylvania Securities Act of 1972 to authorize regulations that establish the requirements for any advertisement of the transmission of digital assets, digital consumer assets, virtual currency and blockchain technology. The bill also sets penalties for violations. The bill was assigned to the House Commerce Committee.
South Carolina: Senate Bill 834a was introduced on 6/14/2023 to amend the state’s version of UCC § 1-201 to add a definition for “central bank digital currency” and exclude central bank digital currency from the definition of “money.” The bill was assigned to the Senate Banking and Insurance Committee.
Texas: The governor signed House Bill 1666 on 6/9/2023 to regulate digital asset service providers. This initiative prohibits a digital asset service provider from commingling customer funds with the digital asset service provider’s own funds. It also requires a digital asset service provider to meet certain reserve requirements, develop certain plans, and make reports to the Department of Banking. In addition, the new law requires a digital asset service provider to obtain a money transmission license. The new law takes effect on 9/1/2023.
Business organization legislation
Alabama: The governor signed House Bill 267 on 6/14/2023 to revise the Alabama Nonprofit Corporation Law. The bill will revise the applicable laws to reflect the national standards set by the Model Nonprofit Corporation Act of 2021 and the Delaware General Corporation Law. The new law takes effect on 1/1/2024.
Massachusetts: House Bill 3917 was introduced on 6/15/2023 to provide for the formation of blockchain-based limited liability companies (BBLLCs). The concept appears similar to that of a distributed autonomous organization (DAO). The bill was assigned to the Joint Economic Development and Emerging Technologies Committee.
Notary legislation
Alabama: The governor signed Senate Bill 322 on 6/14/2023 to make several changes to the laws regulating notaries. The new law will (i) increase the application fee for a notary commission from $10 to $100; (ii) expand the grounds for which an application for commission maybe denied; (iii) prohibit a notary from performing notarial acts in some situations; (iv) require a prospective notary to complete a training program; (v) increase the bond amount from $25,000 to $50,000; (vi) provide requirements for certain notarial acts; (vii) provide criminal penalties for certain acts; and (viii) increase the fees a notary may charge for notarial acts to $10.The new law takes effect on 9/1/2023.
Connecticut: The governor signed Senate Bill 1040 on 6/12/2023 to authorize notaries to perform remote online notarial acts. The new law takes effect on 10/1/2023.
Delaware: House Bill 239 was introduced on 6/16/2023 to exempt a notary public employed by and working under the direct supervision of an attorney licensed to practice law in Delaware from the requirement to keep a journal of all notarial acts performed by the notary public. The bill was assigned to the House Judiciary Committee.
Texas: The governor signed House Bill 255 on 6/10/2023 to authorize a notary to record the expiration date of identification documents and require the secretary of state every five years to adjust the fees a notary may charge based on the inflation rate. The new law takes effect on 9/1/2023.
Real estate recording-related legislation
Florida: The governor signed Senate Bill 286 on 6/12/2023 to require that an assignment of leases and rents be perfected against the mortgagor in addition to third parties under certain conditions. The bill also makes other changes regarding assignments of leases and rents. The new law takes effect on 7/1/2023.
Nevada: Senate Bill 395, which would regulate ownership of residential property by business entities, passed the Senate on 6/3/2023 and the Assembly on 6/5/2023. The bill was amended since introduction and now provides that (i) the aggregate number of units of residential property that may be acquired in one calendar year by corporations, LLCs, and affiliates of such entities is limited to no more than 1,000 units; (ii) requires the secretary of state to maintain a registry of corporations, LLCs, and affiliates of such entities that purchase or own residential real property in the state; (iii) prohibit the recording of a deed to a corporation or LLC unless it includes the certificate of registration issued by the secretary of state and sets forth that the transferred property is not the primary residence of the owner. The bill is now pending action by the governor.
Other items and legislation of interest
Texas: The governor signed House Bill 19 on 6/9/2023 to create a business court. The business court will have civil jurisdiction concurrent with district courts for certain actions related to company governance and certain actions related to commercial transactions. The new law applies to civil actions commenced on or after 9/1/2024.
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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.