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Legislative Developments
May 13, 2024

Article 9 and lien-related legislation

Alabama: House Bill 493 was introduced on 4/30/2024 to clarify availability and perfection of mechanic’s liens on aircraft. This bill would specify that a person who stores, fuels, repairs, or performs maintenance work on an aircraft has a mechanic’s lien on the aircraft, subordinate to certain security interests under the Uniform Commercial Code (UCC) that were perfected before the storage, fuels, repairs, or maintenance work was provided. The bill would further authorize the holder of a statutory mechanic’s lien on an aircraft to record the lien by filing with the Federal Aviation Administration Aircraft Registry and, in certain cases, with the secretary of state.

Other uniform laws legislation (includes the 2022 amendments to the Uniform Commercial Code with UCC Article 12-Controllable Electronic Records)

Georgia: The governor signed House Bill 1240 on 5/6/2024 to enact the Uniform Commercial Code Modernization Act of 2024 (the 2022 Amendments to the UCC) including UCC Article 12-Controllable Electronic Records and related amendments. The new law takes effect on 7/1/2024.

Minnesota: The governor signed House Bill 3868 on 5/6/2024 to enact the 2022 Amendments to the UCC, including Article 12-Controllable Electronic Records and conforming amendments. The new law takes effect on 8/1/2024.

Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)

Oklahoma: The House concurred in Senate amendments to House Bill 3594, which would adopt the Blockchain Basics Act, on 5/7/2024. This bill would provide that (i) an individual may engage in home digital asset mining; (ii) a digital asset mining business may operate in any area zoned for industrial use; (iii) limit local government ability to regulate digital asset mining; and (iv) limit state and local government ability to impose additional taxes or charges on controllable electronic records used as a method of payment. The bill is pending action by the governor.

Business organization legislation

Alabama: The governor signed House Bill 230 on 5/6/2024 to repeal the requirement that corporations provide an annual report to the secretary of state. The new law takes effect on 10/1/2024.

California: Senate Bill 1168, which would provide remedies for a person who learns or reasonably suspects that their personal identifying information (PII) has been used unlawfully in a business entity filing, passed the Senate on 5/9/2024. The bill would (i) authorize the secretary of state to cancel a limited liability company (LLC) or corporation upon the entry of a court order; and (ii) authorize a person who has learned their PII has been used unlawfully in a business filing to file a disclaimer of proper authority with the secretary of state.

Connecticut: Senate Bill 428, which would revise business registration requirements for filing with the secretary of state, passed the Senate on 5/6/2024 and the House on 5/8/2024. Among other changes, this bill would require businesses to provide a valid email address to the secretary of state and allow the secretary of state to provide certain notices to businesses by email instead of by registered or certified mail as provided by current law. The bill also prohibits the use in advertising by a business of an assumed name that suggests a business is in a municipality unless it is located there. The bill is pending delivery to the governor.

Notary legislation

Alabama: The governor signed Senate Bill 289 on 5/9/2024 to address transactions where the notary has a financial interest. The new law will explicitly recognize that the prohibition of a notary public from acknowledging a document that is required for a transaction in which the notary has a financial interest does not apply to professionals such as attorneys, accountants, or real estate brokers, or their employees, who may lawfully notarize the documents that are a necessary part of the professional services for which they are paid. The new law takes effect on 10/1/2024.

Georgia: The governor signed House Bill 1292 on 5/2/2024 to require that notaries review certain identification documents and keep a journal of notarial acts performed for “self-filers,” a term which is defined in the bill. It also requires notaries to complete an educational class within 30 days prior to an initial appointment or each subsequent renewal appointment. The final bill also includes provisions related to electronic real property recording. The new law takes effect on 1/1/2025.

New York: Assembly Bill 7241 (2023), which would exempt from recordkeeping and reporting requirements any act of a notary public related to the designation or nomination of candidates, passed the Assembly on 5/6/2024 and is pending in the Senate.

Real estate recording-related legislation

Georgia: In addition to the notary provisions described above, House Bill 1292 also provides that documents submitted for recording by “self-filers” (a person who is a party to the instrument) be submitted using electronic filing. Clerks of the superior court shall offer electronic recording for deeds, mortgages, statutory liens, and certain other documents by the time the new law takes effect. In addition, rules and regulations adopted by the Georgia Superior Court Clerks Cooperative Authority to implement the law shall require any individual who wants to submit electronic documents for recording to provide information sufficient to identify the individual through the electronic filing portal. The new law takes effect on 1/1/2025.

Ohio: Senate Bill 94 (2023), which would address state treasurer matters but includes a provision that would require county recorders to implement electronic recording and make real estate records available online, passed the Senate on 5/8/2024. The provision states that each county recorder, county auditor, and county engineer shall make available to the public a method for electronically recording instruments related to conveyances of real property that adheres to the standards governing conveyances of real property. In addition, each county recorder shall make available to the public on the county recorder’s web site electronic indexes for, and electronic versions of, all instruments recorded on or after January 1, 1980, although there are exceptions for certain document types. The electronic recording and online indexes must be available by 6/30/2026.

Rhode Island: House Bill 7867, which would require the recording of condominium bylaws and rules of the association, passed the House on 5/9/2024. The bylaws and rules would have to be recorded in the land evidence records of the city or town the condominium is in and require amendments to the original filings to be certified by two or more members of the executive board.

South Carolina: Senate Bill 881, which would provide that any recorded unfair real estate service agreement or notice or memorandum of an unfair real estate service agreement is void, passed the House on 5/9/2024 and is pending delivery to the governor.

Tennessee: The governor signed Senate Bill 2448 on 5/6/2024 to authorize a study of real estate fraud in the state. The new law took effect immediately. The bill originally would have required county registers of deeds and notaries public to verify the identity of a person recording or notarizing a document relating to certain real estate transactions but was amended prior to enactment.

Other items and legislation of interest

Louisiana: House Bill 380, which would require the Louisiana Clerks’ Remote Access Authority (LCRAA) to develop a statewide integrated electronic filing system, passed the House on 5/7/2024. After implementation of such a system, the bill would require any document filed in connection with a civil, traffic or criminal matter to be filed electronically with the clerk of court.

Maryland: The governor signed House Bill 611 and Senate Bill 534 on 5/9/2024 to repeal the Electronic Transactions Protection Act. The new law takes effect 10/1/2024.


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.