Article 9 and lien-related legislation
No developments to report.
Other uniform laws legislation (includes the 2022 amendments to the Uniform Commercial Code (UCC) with UCC article 12-Controllable Electronic Records)
Illinois: Senate Bill 3696, which would enact the 2022 Amendments to the UCC, including UCC Article 12-Controllable Electronic Records and related amendments, passed the House on 5/23/2024 and is awaiting delivery to the governor.
Rhode Island: House Bill 7210, which would enact the 2022 Amendments to the UCC, including UCC Article 12-Controllable Electronic Records and related amendments, passed the House on 5/22/2024.
Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)
Louisiana: House Bill 488, which would adopt the Blockchain Basics Act, passed the Senate as amended on 5/21/2024. This bill would (i) prohibit any agency or political subdivision of the state from accepting or requiring payment using a central bank digital currency; (ii) limit state and local government ability to regulate the use of digital asset storage and use as a method of payment; (iii) establish that it is legal to participate in home digital asset mining; (iv) limit the ability of state and local government to regulate digital asset mining; and (v) exempt digital asset mining services from licensing as a money transmitter and securities and investment laws. The Senate amendments softened the prohibition on government regulation and removed a limitation of liability for specific transactions. The House refused to concur in the Senate amendments on 5/23/2024 so the bill will go to the conference committee.
United States: House Bill 4763 (2023), which would enact the Financial Innovation and Technology for the 21st Century Act, passed the House on 5/22/2024 and is pending in the Senate. This bill would provide a system for the regulation of digital assets by the Commodity Futures Trading Commission and the Securities and Exchange Commission.
Business organization legislation
Alabama: The governor signed Senate Bill 112 on 5/17/2024 to amend the Alabama Business and Nonprofit Entities Code. The amendments clarify that the location of a registered agent must be in the state and make other amendments to be consistent with Delaware law changes. The new law has staggered effective dates, with portions becoming effective on 6/1/2024 and other sections becoming effective at various times throughout the year with the final portion taking effect on 1/1/2025.
California: Senate Bill 1201, which would require limited liability companies to report as part of the entity’s biennial statement the name and complete business or residence addresses of any beneficial owner, passed the Senate on 5/21/2024. The bill would also allow the secretary of state to increase by rule the fees charged for filing the information statements required for certain business entities.
New Hampshire: House Bill 645 (2023), which would authorize the creation of distributed autonomous organizations as legal entities in the state, passed the Senate on 5/23/2024 and is pending further action.
Notary legislation
California: Assembly Bill 2004, which would authorize a notary public to certify that a tangible copy of an electronic record is an accurate reproduction of the electronic record, passed the Assembly on 5/21/2024. The bill also requires a recorder to accept for recording a tangible copy of an electronic record that has been so certified by a notary public if specified requirements are met.
Illinois: Senate Bill 3513, which would amend the Notary Public Act, passed the House on 5/23/2024 and is pending delivery to the governor. This bill would provide that an applicant to renew an appointment as a notary public or electronic notary public is not required to complete a course of study or pass an examination if the applicant is a licensed attorney, a judge, or employed by a licensed attorney or the court.
Real estate recording-related legislation
California: Assembly Bill 2980, which would authorize a county recorder to index any record or amended record on a publicly accessible distributed ledger using blockchain technology, passed the Assembly on 5/21/2024.
California: Assembly Bill 3108, which would address mortgage fraud, passed the Assembly on 5/22/2024. The bill would prohibit the filing of any document with the recorder of any county known to contain a material misstatement, misrepresentation, or omission. The bill also expands the definition of “mortgage fraud.”
Louisiana: Senate Bill 506, which would prohibit the recording of real estate service agreements in the mortgage and conveyance records, passed the House on 5/20/2024 and the Senate concurred on 5/21/2024. The bill is now awaiting delivery to the governor.
New York: Assembly Bill 10294 was introduced on 5/17/2024 to require a sworn affidavit stating that the seller of real property was informed of the fair market value of the property be included in the real property transfer form.
Illinois: Senate Bill 3420, which would enact the Unfair Service Agreements Act, passed the House on 5/20/2024 and is pending delivery to the governor. This bill would provide that a county recorder may refuse to record an unfair service agreement.
South Carolina: The governor signed Senate Bill 881 on 5/20/2024 to provide that any recorded unfair real estate service agreement or notice or memorandum of an unfair real estate service agreement is void. The new law took effect immediately.
Other items and legislation of interest
No developments to report.
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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.
