Q2 Jurisdictional Updates

Below are the recent Jurisdictional Updates as of June 29, 2022 for the second quarter of the year.

Alabama passed 2 new legislations HB 391 takes effect July 1, 2022 reduces to $50 the minimum business privilege tax and provide full exemption on amounts due of $100 for taxable years beginning after December 31, 2022. SB 211 takes effect on January 1,2024 to adopt the Uniform Certificate of Title for Vessels Act. SB 299 takes effect on August 1, 2022 to increase the special recording fee charged by the Bullock County judge of probate for document recording from $7 to $10.  

Arizona passed 5 new legislations HB 2165 took effect April 24, 2022 modifies licensing requirements for the production, installation and sale of manufactured homes, mobile homes, and factory-built buildings to obtain a valid fingerprint clearance card in lieu of a background check. HB 2612 took effect April 23, 2022 eliminates requirements relating to the character of an applicant for an occupational license, permit, certification, or other state recognition. HB 2645 includes provisions for notice to the secretary of state following a change of a notary public’s mailing, business or home address and that specify a notary public’s obligations following the loss, theft or compromise of a notary’s official journal or stamping device. SB 1204 took effect April 29, 2022 modifies licensing requirements to permit a responsible individual of mortgage brokers and bankers to reside out of state. SB 1394 outlines procedures and requirements for licensees of the Department of Insurance and Financial Institutions (DIFI) when doing business under an assumed name or trade name.

California passed 2 new legislations AB 769 took effect on March 25, 2022 authorizes shareholders or members to conduct a meeting of shareholders or members solely by electronic transmission by and to the corporation, electronic video screen communication, conference telephone, or other means of remote communication if the meeting is conducted on or before January 30, 2022. SB 1235 (2018) takes effect December 9, 2022 requires non-bank lenders and other finance companies to provide written disclosure for certain commercial transactions.

Legislative building

Colorado passed SB 229 on June 7, 2022 and takes effect 90 days after legislature adjourns. It provides an additional circumstance where a public trustee may release a deed of trust without evidence that the original debt has been paid off.

Florida passed SB 336 takes effect January 1, 2023 to amend assignment provisions in Part 4 of UCC Article 9.

Georgia passed 4 new legislations HB 916 takes effect July 1, 2022 provides for a unified procedure for appealing decisions of a lower judiciary to a superior or state court. HB 969 takes effect July 1, 2022 updates regulation of insurance holding company systems. HB 974 takes effect July 1, 2023 to address methods of recording with the superior court clerks.  The new law requires that all clerks in the state offer the ability to record real estate documents electronically. SB 96 (2021) takes effect on July 1, 2022 to provide for notary purposes that satisfactory evidence of identity of a document signer, oath taker or affirmant shall include a veterans health identification card.  

Hawaii passed SB 2741 on April 27, 2022 took effect immediately to provide exceptions to the state’s sunshine laws that will allow members of the Hawaii commission on uniform legislation to more fully participate in out-of-state activities with the Uniform Law Commission.

Idaho passed HB 610 takes effect July 1, 2022 modifies collection agency licensing requirements.

Illinois passed 2 new legislations HB 4270 takes effect January 1, 2023 to provide for the form and effect of a special warranty deed. SB 2664 takes effect July 1, 2022 amends the Notary Public Act relating to electronic notarial acts. 

Indiana passed 2 new legislations HB 1092 which takes effect July 1, 2022 to delete a non-uniform notice portion of the state’s UCC § 9-502.  The non-uniform provision requires the secured party to send a copy of a financing statement to the debtor within 30 days of filing.  Indiana is the only state that has such a requirement. Secured parties will no longer need to send a copy of the financing statement to the debtor for records filed on or after the effective date. SB 357 takes effect on July 1, 2022 with some provisions effective by December 31, 2023.  This bill provides that a county auditor shall not refuse to endorse an instrument simply because it is in electronic form.

Iowa passed HB 2469 takes effect July 1, 2022 amends the corporation law relating to the use of electronic mail and the availability of shareholders lists.

Kansas passed HB 2489 takes effect July 1, 2022 amends the technology enabled fiduciary financial institutions act (TEFFI Act).

Kentucky passed 4 new legislations HB 506 took effect April 15, 2022 requires registration and regulation of Professional Employer Organizations (PEO). HB 523 takes effect 90 days after legislature adjourns to provide that a purchase-money mortgage or deed of trust granted by a purchaser shall have priority over a prior lien against the purchaser. HB 643 took effect April, 15, 2022 amends existing law regarding mortgage licensing. SB 135 takes effect 90 days after legislature adjourns to require that county clerks establish a portal that will enable the public to electronically file and search county records online, including real estate records and UCC fixture filings.

Louisiana passed 2 new legislations HB 903 takes effect August 1, 2022 to change current law regarding the location of a remote notarial act. The bill provides that a remote online notarial act is deemed to be executed in the parish where the notary public is physically located at the time of the remote online notarization. The remote notary must also have jurisdiction in the designated parish. HB 57 takes effect August 1, 2022 to address issues related to homeowners association liens. The new law shortens the time in which a homeowners association must file suit to enforce a lien from 5 years to 1 year and provides for a demand notice requirement to the property owner.

Maine passed HB 1503 takes effect on July 1, 2023 which adopts the Revised Uniform Law on Notarial Acts, including remote notary authorization for both electronic and tangible records.

Maryland passed HB 663/SB 317 took effect June 1, 2022 which amended the notary law.  

Minnesota passed HB 3400 takes effect August 1, 2022 to address fraudulent UCC filing. The bill is substantially based on the hip-pocket amendments to UCC Article 9.

Mississippi passed 3 new legislations HB 687 takes effect July 1, 2022 re-enacted the Debt Management Services Act. HB 1351 takes effect July 1, 2022 to specify requirements for an affidavit of scrivener’s error related to a document affecting the title to real property.  HB 1360 takes effect July 1, 2022 aligns bank and savings loan merger approvals with the Business Corporation Act.

Nebraska passed 2 new legislations LB 767 takes effect July, 21 2022 requires pharmacy benefit manager licensing and regulation. LB 1102 takes effect 3 months after the session adjourns to adopt the Nebraska Environmental Response Act. This new law creates an environmental lien that must be filed with the register of deeds in each county where the responsible person owns real property for cleanup costs on all of the responsible party’s real property in the state.

New Hampshire passed HB 1559 takes effect July 2, 2022 makes technical changes to certain laws administered by the insurance department.

New Jersey passed SB 3590 took effect June 1, 2022 following the issuance of regulations by the Real Estate Commission allows real estate salespersons or broker salespersons to form a limited liability company or other entity to receive commission income and requires the commission to create a registration process for LLCs and other entities.

Ohio passed SB 256 on April 20, 2022 and effective 90 days after filing with the Secretary of State amends the insurance code to among other things permit electronic signatures and amend limited travel insurance requirements.

Oklahoma passed HB 3811 which takes effect November 1, 2022 to amend the law with respect to the central filing system for farm products under the federal Food Security Act. The new law authorizes distribution of the master list via internet download and eliminates fees for those who access the list via internet download.

Rhode Island passed HB 7363 which would amend state notary law to permit remote notarization and recognize notarial acts performed under the law of a federally recognized Indian tribe.

South Carolina passed 2 new legislations HB 5338  took effect immediately to approve regulations promulgated by the secretary of state regarding electronic notarization, including the procedures and requirements for a person to become an electronic notary. SB 5150 takes effect July 1, 2022 requires any county that meets certain criteria to use the local government fund to implement an electronic or e-filing system in the county’s Register of Deeds Office for the recording of documents and for payment of associated fees. The Register of Deeds would monitor, utilize, and maintain the system.

Tennessee passed 3 new legislations HB 1906 took effect immediately to clarify the priority of a state tax lien relative to a recorded deed or deed of trust. HB 2645 took effect April 20, 2022 amends the LLC Act to permit LLC conversions to a decentralized organization with a notice of restrictions on duties and transfers in the articles of organization and include entity endings DO, DAO, DO LLC or DAO LLC. SB 1935 took effect April 8, 2022 removes notarization requirements and requirements of sworn under penalty of perjury for charitable solicitations and certain other documents filed with the Secretary of State. 

Capitol Building

South Dakota passed HB1229 takes effect July 1, 2022 permits formation of corporations and LLCs by physical therapists, occupational therapists, and speech language pathologists.

Texas passed SB 1523 took effect June 1, 2022 amends the Business Organizations Code regarding series limited liability companies to provide for filings to create a registered series with the LLC name and the phrase “registered series” or the abbreviation “RS” or “R.S.” and establish procedures for mergers and conversion of a protected or registered series to the other type of series.

Utah passed 4 new legislations SB 80 takes effect on July 1, 2022 to provide requirements for the legal description on documents to be recorded with a county recorder. SB 184 takes effect on January 1, 2023 to require that county recorders provide for electronic recording of a plat and to accept an electronic document for the recording of a plat. SB 43 took effect May 4, 2022 changes the name of the Division of Occupational and Professional Licensing and modifies certain occupational and professional licensing requirements. SB 213 took effect May 4, 2022 prohibits the use of 911 in a business entity name and prohibits the use of 911 by a person with the purpose to deceive the public that the person operates or represents emergency services

Vermont passed 2 new legislations HB 512 takes effect July 1, 2022 adopts the Revised Uniform Law on Notarial Acts (RULONA) and URPERPA. HB 515 takes effect July 1, 2022 amends existing law pertaining to banking, securities, and insurance regulation, including with respect to travel insurance, data security, and whistleblower awards and protection.

Virginia passed 2 new legislations HB 82 takes effect July 1, 2022 relates to insurance holding company systems, group capital calculation and liquidity stress text. HB 691 takes effect July 1, 2022 amends business entity statutes to clarify terminology regarding conversion and domestication of entities.

Washington passed 3 new legislations SB 5489 took effect June 9, 2022 to make numerous changes to the state business organization laws. HB 1376 (2021) takes effect on July 1, 2023 to repeal existing law regarding registered land and remove all lands from the title registration system. HB 1376 (2022) took effect June 6, 2022 repeals the Torrens real property registration system and provides a process for removing registered property from the registration system and placing it in the recording system.

Wisconsin passed 3 new legislations SB 865 took effect on March 20 ,2022, except that the DFI has until January 1, 2023. Puts the new filing system in place require that that covenants and restrictions for a planned community be recorded by the homeowners association with the register of deeds of every county where the community is located.  The bill also requires the Department of Financial Institutions (DFI) to create a filing system for certain notices by homeowners associations. SB 566 took effect April 17, 2022 updates and harmonizes five business entity statutes: Chapter 178 (partnerships); Chapter 179 (limited partnerships); Chapter 180 (stock corporations); Chapter 181 (non-stock corporations); and Chapter 183 (LLCs). Among other things, all five entity types may merge and engage in so-called “cross-species” transactions. SB 566 (2021) took effect on April 16, 2022 with modifications, the most recent versions of the Uniform Limited Partnership Act and Uniform Limited Liability Company Act. The bill will also make changes to the state’s partnership law and to the law governing business corporations and nonstock corporations. 

U.S. Federal Government passed EO 14071 United States Department of Treasury Office of Foreign Assets Control is taking action to cut off access to services that are used by the Russian Federation and Russian Nationals to evade sanctions. OFAC has identified accounting, trust and corporate formation, and management consulting as categories of services that are subject to a prohibition on the export, reexport, sale, or supply, directly or indirectly, from the United States, or by a U.S. person, wherever located, to any person located in the Russian Federation.

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