Article 9 and lien-related legislation
No developments to report this week.
Other uniform laws legislation (includes the 2022 Amendments to the UCC with UCC Article 12-Controllable Electronic Records)
Alabama: House Bill 348, which would enact the 2022 Amendments to the Uniform Commercial Code (UCC), passed the Senate on 6/1/2023 and is now pending delivery to the governor.
Delaware: Senate Bill 157 was introduced on 6/1/2023 to enact the 2022 Amendments to the UCC, including UCC Article 12-Controllable Electronic Records, and related amendments. The bill was assigned to the Senate Judiciary Committee.
Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)
Nebraska: Legislature Bill 92, which would clarify provisions of the Nebraska Banking Act and regulate institutions that offer digital asset depositories, passed the Legislature on 6/1/2023 and is pending delivery to the governor.
New York: Senate Bill 5621, which would require certain elected officials to report digital asset holdings as part of their annual financial disclosures filed with an ethics commission, passed the Senate on 5/30/2023. The bill was then assigned to the Assembly Governmental Operations Committee.
Business organization legislation
Alabama: House Bill 267, which would revise the Alabama Nonprofit Corporation Law, passed the Senate on 6/1/2023 and is pending delivery to the governor. The bill would revise the applicable laws to reflect the national standards set by the Model Nonprofit Corporation Act of 2021 and the Delaware General Corporation Law.
Louisiana: The governor signed House Bill 395 on 5/30/2023 to revise the requirements for certain business organization documents filed with the secretary of state. The bill (i) requires a contract for partnership filed for registry with the secretary of state to be written in English; (ii) requires certain documents as satisfactory evidence that a Limited Liability Company (LLC) is entitled to use certain words in its name indicating professional status; and (iii) makes other changes to certification and filing requirements. The new law takes effect 8/1/2023.
Texas: The governor signed Senate Bill 1514 on 5/13/2023 to update the Business Organizations Code with several technical and substantive revisions recommended by the State Bar of Texas Business Law Section in consultation with the secretary of state. The revisions include a provision to clarify that a protected series does not have an “assumed name” if its name includes the name of the associated LLC. The new law takes effect on 9/1/2023.
Alabama: Senate Bill 322, which would make several changes to the laws regulating notaries, passed the Senate on 5/25/2023 and was assigned to the House Judiciary Committee. The bill would (i) increase the application fee for a notary commission from $10 to $100; (ii) expand the grounds for which an application for commission may be 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.
California: Senate Bill 696, which would make several changes to the law regarding notaries and public records, passed the Senate on 5/30/2023. The bill would (i) give effect to a notarial act performed under the jurisdiction of another state, federally-recognized Indian tribe or federal law; (ii) provide an application process with the secretary of state for an online notary; (iii) provide requirements and application process for certification of online notary platforms; (iv) provide access restrictions and privacy protections for records of online notarizations; and (v) exempt records of online notarizations from disclosure under the California Public Records Act. Further committee assignment in the Assembly is pending.
Connecticut: Senate Bill 1040, which would authorize notaries to perform remote online notarial acts, passed the House with amendments on 5/31/2023. Further action is pending.
Iowa: The governor signed House Bill 397 on 6/1/2023 to require that identity proofing used by a notary for purposes of performing remote notarial acts must conform to standards established by the secretary of state. The new law takes effect on 7/1/2023.
New York: Senate Bill 2271, which would clarify the requirements for acknowledgements, proofs oaths, and affirmations without the state, passed the Senate on 6/1/2023. The bill is pending in the Assembly Judiciary Committee.
Texas: The governor signed Senate Bill 1780 on 5/27/2023 to revise online notarization requirements and procedures. The bill also establishes procedures for online notarization of tangible documents. The new law takes effect on 1/1/2024.
Real estate recording-related legislation
Iowa: The governor signed House Bill 111 on 6/1/2023 to exempt deeds that transfer assets to the beneficiaries of a trust from the real estate transfer tax. The new law takes effect 7/1/2023.
Nevada: Senate Bill 223, which would revise the requirements for recording a notice of lis pendens in relation to foreclosure of a mortgage or deed of trust, passed the Assembly on 5/23/2023 and was signed by the governor on 5/31/2023. The new law takes effect on 7/1/2023.
Other items and 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’s 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.