Legislative Developments 7-15-2022

Legislative Developments 7-15-2022

Article 9 and Lien-Related Legislation

Florida: The governor vetoed SB 406 on 6/24/2022. This bill would have amended the state’s UCC § 9-108 to provide that a description of collateral by “accounts” is not sufficient for certain types of accounts and entitlements related to pensions, tax-free health savings accounts, education accounts, life insurance proceeds, disability benefits and similar assets.

Massachusetts: House Bill 4996 was introduced on 7/11/2022 to establish a uniform statewide system for filing notices of tax liens, which would be called the State Tax Lien Centralized Registry. The uniform statewide system shall be used for state tax liens on real property and personal property, tangible and intangible. This appears to be an updated version of HB 4362, which was introduced in January. The bill was assigned to the House Ways and Means Committee.

Other Uniform Laws Legislation

Michigan: HB 4618 (2021), which would amend the Uniform Voidable Transactions Act so it conforms with the Qualified Dispositions in Trust Act, passed the Senate on 6/30/2022 and is now pending consideration by the governor.

Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)

Massachusetts: House Bill 4922 was introduced on 6/27/2022 to establish education and training programs for blockchain technology. The bill was assigned to the Labor and Workforce Development Committee.

New Hampshire: The governor signed HB 1503 on 6/28/2022. This bill will exempt a developer, seller, or facilitator of the exchange of an open blockchain token from certain securities laws. The bill also includes House amendments to adopt UCC Article 12; Controllable Electronic Records, which has been drafted by Joint Committee on the UCC and Emerging Technologies of the ULC to govern controllable electronic records. The new law takes effect on 1/1/2023.

Business Organization Legislation

Pennsylvania: HB 2057 (2021), which would make numerous changes to the state’s Corporations and Unincorporated Associations laws, passed the House on 6/27/2022 and is pending in the Senate Finance Committee. Among other changes, this bill would (i) require business entities to make annual reports to the secretary of state; (ii) provide the permissible methods of delivery for records to the secretary of state; and (iv) provide requirements for names generally.

Notary Legislation

Delaware: SB 262, which would adopt the Revised Uniform Law on Notarial Acts (RULONA), passed the House on 6/30/2022 and is pending delivery to the governor. 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. An amendment adopted by the Senate before the bill was sent to the House (i) delays the effect of this Act until August 1, 2023, and extends the authority granted to Delaware attorneys to conduct remote notarization until the Act takes effect; and (ii) clarifies that a notarial officer may not attest to a copy of an official or public record that must be certified by a public official.

Massachusetts: House Bill 4989 was introduced on 7/7/2022 to extend emergency remote notary authorization. Committee assignment is pending.

North Carolina: The governor signed HB 776 (2021) on 7/8/2022 to adopt the Remote Online Notarization Act. The bill provides for the qualifications, procedures and other requirements for remote online notarization. The new law takes effect on 7/1/2023.

Rhode Island: The governor signed HB 7363 on 6/30/2022 to permit remote notarization and recognize notarial acts performed under the law of a federally-recognized Indian tribe. The new law took effect immediately.

Rhode Island: The governor signed SB 2705 on 6/30/2022 to permit remote notarization and recognize notarial acts performed under the law of a federally-recognized Indian tribe. The new law took effect immediately.

Real-Estate-Recording-Related Legislation

North Carolina: The governor signed HB 1018 on 7/8/2022 to change to the state’s real estate laws. The bill will (i) abolish the rule against perpetuities; (ii) provide for recording a memorandum of an option to purchase, sell or right of first refusal; (iii) enhance the liability protections of a partner in a registered limited liability partnership. The new law took effect immediately.

Rhode Island: SB 2705, 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 Senate on 6/22/2022 and then passed the Senate the following day. The bill is now pending consideration by the governor.

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.