Article 9 and lien-related legislation
No developments to report.
Other uniform laws legislation including the 2022 amendments to the Uniform Commercial Code (UCC) with UCC Article 12-Controllable Electronic Records
Illinois: The governor signed Senate Bill 3696 on 8/9/2024 to enact the 2022 Amendments to the UCC, including UCC Article 12-Controllable Electronic Records. The new law takes effect on 1/1/2025.
Massachusetts: House Bill 4984 was introduced on 8/5/2024 to adopt the Uniform Voidable Transactions Act (UVTA). This bill, along with House Bill 1716 (2023), another bill to enact the UVTA, are pending in the joint Judiciary Committee.
Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)
No developments to report.
Business organization legislation
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 Assembly on 8/15/2024. The bill would (i) authorize the secretary of state to cancel an 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. The bill is still pending action by the governor.
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 Senate with amendments on 8/22/2024 and the Assembly concurred on 8/29/2024. 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. The bill is now pending action by the governor.
Illinois: The governor signed Senate Bill 3513 on 8/9/2024 to amend the Notary Public Act. This new law provides 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. The new law takes effect on 1/1/2025.
Real estate recording-related legislation
California: The governor signed Assembly Bill 3108 on 9/24/2024 to address mortgage fraud. The bill had passed the Senate as amended on 8/28/2024 and the Assembly concurred the following day. The new law prohibits the filing of any document with the recorder of any county known to contain a material misstatement, misrepresentation, or omission. It also expands the definition of “mortgage fraud.” The new law takes effect on 1/1/2025.
Delaware: The governor signed Senate Bill 25 on 8/9/2024 to reduce the realty transfer fee for certain affordable housing projects. The new law took effect immediately.
Illinois: The governor signed Senate Bill 694 on 8/9/2024 to allow a county, by ordinance or resolution, to increase recording fees allowed on a predictable fee schedule if a multi-year cost study or analysis determines the existing fees are not sufficient to cover the costs of the service. This new law also allows counties to charge an automation fee and Geographic Information Systems (GIS) fee if adopted by ordinance or resolution. The new law takes effect on 1/1/2025.
Illinois: The governor signed Senate Bill 3420 on 8/9/2024 to enact the Unfair Service Agreements Act. The Act provides that a county recorder may refuse to record an unfair service agreement. The new law took effect immediately.
New Jersey: Assembly Bill 4839 was introduced on 9/23/2024 to increase the threshold for imposition of the additional fee and the controlling interest transfer tax from considerations in excess of $1,000,000 to considerations in excess of $1,650,000.
New York: The governor signed Senate Bill 8583 on 9/20/2024 to authorize the County of Essex to impose an additional mortgage recording tax. The new law took effect immediately but expires on December 1, 2027.
Other items and legislation of interest
United States: House Bill 9045 was introduced on 7/15/2024 to amend the Corporate Transparency Act (CTA). The amendment would exempt certain homeowners’ associations from the CTA reporting requirements.
United States: House Bill 9278 was introduced on 8/2/2024 to provide small businesses with an extra year to comply with the beneficial ownership information reporting requirements of the Corporate Transparency Act.
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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.
