American Bar Association
 
Legislative Enactment of Revised Article 9 Joint Task Force

ABA Section of Business Law


Legislative Enactment of Revised Article 9 Joint Task Force


About Us




Mission Statement
This task force will seek to assist the National Conference of Commissioners on Uniform State Laws and other bodies with the enactment in the U.S. States of the 2010 updates to Article 9 of the Uniform Commercial Code.

Roster
The roster below shows task force members by the state with which they are affiliated and with respect to which they will be helping with the enactment of the Article 9 revisions.

Updates by Date

June 26, 2013:

  • Missouri: The governor signed HB 212 yesterday, 6/25/13, to enact the 2010 Amendments. The enacted bill provides Alternative A for individual debtor name sufficiency in 9-503(a)(4). The new law omits the changes to the safe harbor forms in § 9-521. Instead, MO elected to retain its current non-uniform version of § 9-521 that requires the filing office to accept forms approved by IACA or adopted by rule promulgated by the Secretary of State. This bill includes the amendments to § 4A-108 that clarify the relationship between the UCC and the EFTA. The bill does not clearly state an effective date. The legislative web site states that it has a proposed effective date of 8/28/13 and the filing office is proceeding with plans to implement the new law on that date.
    Massachusetts: There is suddenly renewed hope that HB 28 will be enacted before the effective date. The bill passed the Senate Ways and Means Committee yesterday, 6/25/13 and was sent to the Committee on Ethics & Rules. That committee, in turn, placed the bill on Orders of the Day for a second reading in the Senate today, 6/26/13.
    Pennsylvania: SB 381 passed the House on 6/24/13. Both chambers signed off on the bill yesterday, 6/25/13 and it should now go to the governor within the next day or so.
    California: AB 502 to enact the 2010 Amendments was amended again in the Senate on 6/24/13 to create a non-uniform rule for the sufficiency of individual debtor names in § 9-503(a)(5). The bill, as amended, now provides that if the debtor is an individual, the financing statement is sufficient only if it provides the individual name of the debtor or the surname and first personal name of the debtor. In essence, it is Alternative B without the driver's license option.

June 25, 2013:

  • Pennsylvania: Senate Bill 381 passed the House yesterday, 6/24/13. Assuming the governor receives and signs the bill this week, the 2010 Amendments will go into effect in PA on Monday, 7/1/13.

    We are still awaiting action by the governors on Missouri HB 212 and Alaska HB 9.

    In other UCC-related developments:

    New Hampshire: HB 559, which includes the amendments to § 4A-108 that clarify the relationship between the UCC and the EFTA, has passed both chambers and is now eligible for transmittal to the governor.

June 24, 2013:

  • New York has finally introduced the 2010 Amendments to UCC Article 9. Senate Bill 5901, an omnibus UCC bill, was introduced on Thursday, June 20, 2013. In addition to Article 9, SB 5901 includes Revised Articles 1 and 7, plus updates to Articles 3 and 4. The bill adopts the Alternative A "Only If" approach for individual debtor names in § 9-503(a)(4) and appears to incorporate by reference at least the UCC3 and UCC3AD forms as set forth in the official text of the 2010 Amendments. However, the first draft of the bill appears to omit subsection (a) of § 9-521 regarding the form of the financing statement. That may be a drafting error. Other non-uniform provisions will be reported in a future update. The bill states it will take effect on July 1, 2013, but that may be a bit optimistic. It is now in the Senate Rules Committee, but it is not on the calendar for the next 2 days.
    Maine: The governor signed LD 1384 to enact the 2010 Amendments to UCC Article 9 on Friday, 6/20/13. The new law provides the Alternative A "Only If" approach for individual debtor name sufficiency in § 9-503(a)(4), includes a non-uniform version of § 9-521 that requires the filing office to accept forms approved by IACA or the Secretary of State. The act takes effect on July 1, 2013.

June 21, 2013:

  • One bill to enact the 2010 Amendments to UCC Article 9 made some additional progress this week:

    Pennsylvania: SB 381 to enact the 2010 Amendments passed its second reading in the House yesterday, 6/20/13. The bill was then re-referred to the House Appropriations Committee. Although no agendas are available yet, the committee is scheduled to meet every day next week. It is still possible for the committee to approve the bill and send it back to the full House for final consideration and enactment in time for the July 1st effective date.

    Other Developments:

    California: AB 502 to enact the 2010 Amendments is scheduled for a hearing in the Senate Judiciary Committee on 7/2/13.
    Washington: A reminder that the Department of Licensing is discouraging the filing of UCC records on Friday, 6/28/13. The UCC online systems will not be available that day while upgrades are installed for the 2010 Amendments. Any UCC records that must be filed on the 28th need to be submitted on paper forms.

    Out of 53 jurisdictions (50 states, DC, PR and USVI), it appears that between 8 and 11 will not have the 2010 Amendments in effect on July 1, 2013.

June 19, 2013:

  • There are less than 2 weeks remaining until the uniform effective date for the 2010 Amendments to UCC Article 9. Here are the latest updates for related legislation:

    Pennsylvania: There has been some recent progress for the 2010 Amendments legislation. SB 381 passed the House Judiciary Committee yesterday, 6/18/13. The bill then received its first reading in the full House and was automatically tabled for up to 15 days. It may come off the table before that time if recommended by the Rules Committee or by a majority vote following the motion of a House member. Consequently, there is still hope the bill will be enacted and take effect on July 1st. The companion bill, HB 24, is still in the Senate Judiciary Committee, where it has been since mid-April. No hearings are scheduled.
    Alaska: There is still no word on whether the governor has signed HB 9 to enact the 2010 Amendments. It is possible the governor has already signed it. The legislature's web site is generally not entirely up to date and the governor's press releases do not report all bill action. It can take days to confirm whether a bill has been signed. This is not a controversial bill, so enactment is expected before July 1st.
    Maine: LD 1384 to enact the 2010 Amendments may be tied up, along with many other bills, due to budget issues and uncertainty over funding. The bill's prospects may turn on its fiscal impact, which should be relatively small.
    Massachusetts: HB 28 to enact the 2010 Amendments is in the Senate Ways and Means Committee. No hearings appear on the calendar and the Committee is not scheduled to meet before July 1st.
    Missouri: The governor still has not signed HB 212 to enact the 2010 Amendments. The governor is in Europe until at least 6/21/13, so no action on the bill is expected until after that date. The signing delay will not have much impact. The bill will not take effect until 8/28/13 even if the governor signs it before July 1st.
    Texas: The governor signed SB 474 on Friday, 6/14/13, to correct a minor drafting oversight in the original 2010 Amendments bill passed a couple years ago. The enacted bill failed to delete the organization information requirements in § 9.516(b)(5)(C). Now that SB 474 has been enacted filers will no longer need to worry about providing organization information after July 1, 2013.
    New York: The Assembly introduced AB 8013 on 6/14/13 to address the problem of fraudulent UCC financing statements. The bill is similar to SB 4042. Both bills provide for special proceedings under § 9-518 to redact or expunge fraudulent UCC records and impose criminal penalties on violators. New York is still awaiting introduction of the omnibus bill to enact the 2010 Amendments, along with Revised Articles 1 & 7, plus other amendments.

June 14, 2013:

  • Another state has enacted the 2010 Amendments to UCC Article 9, plus there are other legislative developments to report today.

    New Jersey: The governor signed SB 2144 to enact the 2010 Amendments to UCC Article 9 yesterday, 6/13/13. This bill provides the Alternative A "Only If" approach for individual debtor name sufficiency in § 9-503(a)(4), incorporates by reference the new forms in § 9-521 and takes effect on July 1, 2013. In addition to the Article 9 changes, the bill also enacts Revised Articles 1 and 7, plus the amendments to § 4A-108 that clarify the relationship between the UCC and the EFTA.
    Arizona: The legislature adjourned sine die in the wee hours this morning. It does not appear that the House concurred in the Senate version of HB 2491 to enact the 2010 Amendments. The bill will need to be reintroduced next year.
    California: AB 502 to enact the 2010 Amendments was assigned to the Senate Judiciary Committee yesterday, 6/13/13.
    Alaska: HB 9 to enact the 2010 Amendments has been awaiting the governor's signature for several weeks. Sources in AK are confident that it will be signed soon. The governor traveled to Juneau this week, where bills are often signed, and could approve HB 9 as early as today.
    Missouri: HB 212 to enact the 2010 Amendments still awaits the governor's signature. It appears the governor's deadline is July 1st.
    Pennsylvania: No activity has been reported on either of the 2010 Amendments bills, HB 24 and SB 381, since mid-April. It appears unlikely that the legislation can be enacted by July 1st.

    Beginning today, and continuing for the next few weeks, CSC will include updates on state filing office implementation of the 2010 Amendments. For example, there are a number of state filing offices that will not have computer systems upgraded by the effective date to be fully compatible with the 2010 Amendments. That situation may require special procedures for filing in some cases. Other filing offices will have announcements or other developments that will be of particular interest to UCC filers. A more extensive list of implementation updates will be included with an update early next week.

    2010 Amendments Implementation Updates:

    Washington: The Department of Licensing ("DOL") has a new UCC system roll out planned to coincide with the July 1st effective date of the 2010 Amendments. To switch over and test the new system, the DOL will shut down its online filing and search system most of the day on Friday, June 28th and throughout the weekend. To avoid problems with filing on that day, CSC recommends planning to file earlier in the week, if possible, or to wait until July 1st. If a record has to be submitted for filing on June 28th, we recommend filing it across the counter as a written record.

June 13, 2013:

  • There are more developments with legislation to enact the 2010 Amendments to UCC Article 9 to report today.

    Arizona: The legislature finally broke the Medicaid and budget impasse that has blocked nearly all legislation for the past month. However, the legislature is planning to adjourn sine die early this afternoon. HB 2491 to enact the 2010 Amendments is not on any of the published calendars for the House today and prospects do not look good for it to be passed before adjournment.

    Massachusetts: Prospects are improving for HB 28. This bill includes the 2010 Amendments to UCC Article 9, Revised Articles 1 and 7, and a number of other amendments to UCC sections, including the amendments to § 4A-108 that clarify the relationship between the UCC and the EFTA. The bill passed the House on 6/12/13 with 2 amendments. One of the amendments is an emergency preamble indicating the need to get it enacted as soon as possible. The other was an amendment to § 9-521 that appears to add the new form images, but the web site report was a bit unclear. It now moves on for consideration by the Senate.
    Ohio: HB 59, an appropriations bill, was passed by the Senate on 6/6/13 with an amendment to delete the form field text from § 9-521 (ORC § 1309.521) and instead incorporate by reference the new UCC forms from the official text of the 2010 Amendments. The House refused to concur in the Senate amendments yesterday, 6/12/13. There were a vast number of amendments, so it is unlikely the House objected specifically to the forms provision. The Senate insisted on the amendments so the bill is now in conference committee.

    Other UCC Developments:

    Rhode Island: The governor signed HB 5462 and SB 506 on 6/7/13 to enact the amendments to § 4A-108 that clarify the relationship between the UCC and the EFTA. The law took immediate effect.
    South Carolina: The governor signed SB 221 on 6/7/13 to enact the amendments to § 4A-108 that clarify the relationship between the UCC and the EFTA. The act took effect immediately.

June 11, 2013:

  • There are some significant developments to report today for legislation to enact the 2010 Amendments to UCC Article 9.

    South Carolina: The governor reportedly signed SB 323 to enact the 2010 Amendments on Friday, 6/7/13. This bill provides the Alternative A "Only If" approach for individual debtor name sufficiency in § 9-503(a)(4), includes the text of the new form fields in § 9-521 and takes effect on July 1, 2013.
    Maine: LD 1384 to enact the 2010 Amendments passed the House yesterday, 6/10/13 and was immediately transferred to the Senate, which also passed the bill as an emergency measure. The bill should soon be transmitted to the governor.
    Massachusetts: HB 28 to enact the 2010 Amendments made sudden progress yesterday. It passed the House Ways and Means Committee, received its second reading in the House and was ordered to its third reading.

    Other UCC Developments:

    Alabama: Pre-filing has already started for 2014. Yesterday, 6/10/13, a bill was pre-filed to amend the AL limited liability company law. Senate Bill 3 includes a UCC provision that makes the anti-assignment provisions in 9-406 and 9-408 inapplicable to any interest in a limited liability company.

June 7, 2013:

  • Maine: The Senate passed LD 1384 (aka HP 985) to be engrossed yesterday, 6/6/13. The bill appears headed for enactment this month.

    We are still watching several bills that are pending action by the governor. These include Alaska HB 9, Missouri HB 212, New Jersey SB 2144, South Carolina SB 323 and Texas SB 474 (a minor correction to the bill enacted in 2011).

    Delayed Effective Dates:

    Several states will not have the 2010 Amendments in effect by July 1, 2013. Consequently, filers will need to comply with the former version of Article 9 in those states until the 2010 Amendments take effect at a later date.

    Alabama: The legislation did not pass in 2013. The 2010 Amendments will not take effect until July 1, 2014 at the earliest.
    Arizona: Legislation provides an effective date of September 1, 2013, but the bill may not even pass this year.
    California: The pending legislation provides an effective date of July 1, 2014.
    Massachusetts: The bill still has a ways to go and is running out of time. Be prepared for an effective date later in 2013 or sometime in 2014.
    New York: The bill is still expected for introduction this month, but time is running out. Be prepared for an effective date later in 2013 or sometime in 2014.
    Oklahoma: The legislation did not pass in 2013. The 2010 Amendments will not take effect until July 1, 2014 at the earliest.
    Pennsylvania: It is still possible, but increasingly unlikely, that the bill will be enacted by July 1st. Be prepared for an effective date later in 2013 or sometime in 2014.
    Vermont: The legislation did not pass in 2013. The 2010 Amendments will not take effect until July 1, 2014 at the earliest.
    US Virgin Islands: The bill has not been introduced. It will not take effect on July 1st. The effective date is unknown.

    Legislatures can act quickly in some cases, so this list may change throughout June. CSC will keep you updated on all effective date developments.

    Other UCC Legislative Developments:

    Rhode Island: HB 5462 and SB 506 passed both chambers on 6/5/13 and are now awaiting action by the governor. These bills amend § 4A-108 to clarify the relationship between the UCC and the EFTA.

June 6, 2013:

  • Arizona: HB 2491 remains in limbo as it awaits concurrence by the House. The legislature is avoiding final passage of any bills right now because a 2009 AZ Supreme Court case requires the legislature to promptly transmit passed bills to the governor. The governor promised to veto any bill sent to her until the legislature acts on the budget and Medicaid expansion. Consequently, if the House were to concur in the Senate version of HB 2491 before the budget and Medicaid issues are resolved, the bill would have to be transmitted for a certain veto.
    Colorado: The governor signed HB 1284 yesterday, 6/5/13. This bill amends § 9-503(a)(4)(C) as enacted by Colorado last year to add the state-issued ID card as an alternative to the driver's license in the Alternative B safe harbor. The new rule takes effect with the 2010 Amendments on 7/1/13.
    Maine: LD 1384 to enact the 2010 Amendments passed the House on 6/5/13.
    South Carolina: SB 323 to enact the 2010 Amendments was transmitted to the governor on 6/4/13.

    Other UCC-Related Developments:

    South Carolina: SB 221 passed both chambers and was transmitted to the governor on 6/4/13. This bill amends § 4A-108 to clarify the relationship between the UCC and the EFTA.

June 1, 2013:

  • Legislative activity slowed down the latter part of this week but there are some updates to report.

    2010 Amendments Developments:

    California: AB 502 to enact the 2010 Amendments passed the Assembly on Wednesday, 5/29/13. The bill received its first reading in the Senate on 5/30/13 and was assigned to the Committee on Rules.
    Arizona: The legislature remains at a standstill, but has not adjourned for the year. The House still has not concurred in the Senate amendments to HB 2491. The House will be back in session on 6/4/13, so there is still hope that the 2010 Amendments will pass this year.
    Pennsylvania: SB 381 is pending in the House Judiciary Committee but the bill is not on the published agenda through 6/5/13. HB 24 is in the Senate Judiciary Committee, but no meetings are scheduled so far for June. It is still possible one of these bills could make it through in time to take effect on 7/1/13, but the prospects are dwindling.

    Alaska HB 9, Missouri HB 212, New Jersey SB 2144 and South Carolina SB 323 are all still awaiting gubernatorial action.

    Illinois: The Secretary of State Department of Business Services announced its policy for transition to the new UCC forms. Starting on July 1, 2013, the effective date of the 2010 Amendments, the filing office will accept only the new 04/20/2011 versions of the § 9-521 forms. There will be no grace period for accepting prior versions of the forms. Likewise, the 04/20/2011 version forms will not be accepted prior to July 1st. Filers must be sure to submit the record on the correct form based on when it will arrive at the filing office. In the alternative, filers can submit the record electronically and avoid the form issue entirely. Most other states will accept prior versions of the UCC forms for at least a 30-days after the 2010 Amendments take effect.

    At this point, it still appears that up to 9 states may not have the 2010 Amendments in effect on July 1, 2013. UCC filers will need to keep track of the enactment status for each state and comply with the law then in effect.

    Other UCC-Related Developments:

    Alabama: The governor signed HB 399, which amends § 4A-108 to clarify the relationship between the UCC and the EFTA.
    Maine: The governor signed HB 167 (aka LD 206) on 5/29/13. This bill provides civil and criminal remedies for the filing of false liens or encumbrances on the real or personal property of a public official. The new law took effect immediately.

May 29, 2013:

  • As expected, this continues to be a busy week for Article 9 legislation:

    Oklahoma: The 2010 Amendments failed to pass before the legislature adjourned for the year. Neither SB 371, nor SB 388 made it out of committee. The legislation will have to be re-introduced next year. Consequently, the 2010 Amendments will not take effect in OK until at least July 1, 2014, perhaps even later. The 2010 Amendments legislation failed to pass for the last three legislative sessions, so its prospects in 2014 are uncertain.
    Arizona: The legislature remains in session. However, HB 2491 to enact the 2010 Amendments still requires House concurrence in the Senate amendments. The bill does not appear on the House calendars through Thursday, 5/30/13. That could, of course, change at any time. The legislature could wrap up its session as early as Friday, 5/31/13.
    California: AB 502 to enact the 2010 Amendments passed its second reading in the Assembly on 5/28/13 and is awaiting a third reading.

    Alaska HB 9, Missouri HB 212, New Jersey SB 2144 and South Carolina SB 323 are all still awaiting action by the governors. No objections are expected and all should become law in the next couple weeks.

    Time is running out for Massachusetts HB 28 and Pennsylvania SB 381. Both bills have a long way to go through the legislature and it is questionable whether they can still be enacted before the July 1st effective date.

    Other UCC-Related legislative developments:

    Maine: SB 352 (aka LD 1038) that amends § 4A-108 to clarify the relationship between the UCC and the EFTA was signed by the governor on 5/24/13. The law took effect upon enactment.
    Nevada: SB 110 that amends § 4A-108 to clarify the relationship between the UCC and the EFTA was signed by the governor on 5/25/13. The bill did not designate an effective date, so the law will likely take effect on 10/1/13.

May 28, 2013:

  • A couple of updates to report this morning for legislation to enact the 2010 Amendments to UCC Article 9:

    California: AB 502 passed from the Assembly Appropriations Committee on Friday, 5/24/13 with some significant amendments. The bill was introduced with the Alternative A "Only If" approach for individual name sufficiency rule in § 9-503(a)(4). The amendments eliminated Alternative A in favor of retaining the current law for individual name sufficiency. The amended bill also reverts to current § 9-502(c) (sufficiency of individual debtor name on record of mortgage) and deletes the proposed amendment to add § 9-503(g) (multiple driver's licenses). The amended bill includes some changes to the Information Statement provisions in § 9-518. It makes non-substantive changes to proposed § 9-518(b) to more closely track the official text of Alternative B (not to be confused with individual name Alternative B). However, the amended bill deletes § 9-518(d), which sets forth the content requirements for an information statement filed by the secured party under new subsection (c). This bill is scheduled for a second reading in the Assembly today, 5/28/13.
    Arizona: The legislature has not yet adjourned, so hope remains for HB 2491 to enact the 2010 Amendments. The legislature has yet to agree on key budget or Medicaid bills and appears fully focused on those issues. The governor has refused to sign any bills until the legislature resolves the impasse. Once an agreement is reached, it is likely the legislature will act very quickly on other pending matters and adjourn. That could happen any day now. CSC will be watching the AZ situation closely over the next few days and report any developments.

    Other UCC-related developments of interest:

    Maine: SB 352 (aka LD 1038) passed the House on 5/22/13. The Senate quickly concurred on 5/23/13. This bill enacts the amendments to § 4A-108 that clarify the relationship between the UCC and the EFTA. The bill is now eligible for transmittal to the governor.

Join Us


Leadership

Sub-Committee Chairs:

Buiteweg, Thomas
McGarvey, John


Enactment Status


Listserve

In order to send a message to the listserve, send a message to the email address below. You must be a member of the Committee to successfully send a message to the listserve.

BL-UCC-ARTICLE9@mail.americanbar.org

In order to access the listserve archive, please click here.


more...

Modified by Graham Hunt on June 11, 2014

Back to Top