IACA Legislative Update 2017 05182017

Legislative Update: 2017

IACA Conference, Halifax, Nova Scotia

PresentedBy:

PaulHodnefieldAssociateGeneralCounselCorporationServiceCompany

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Article9andLienLegislation

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Georgia House Bill 337

ProvidesforFilingNoticesofStateTaxLienExecutions• Createsauniformstate‐widefilingsystemfornoticesofstate

taxlienexecutions.

DirectsGSCCCAtoReviseStatewideSystem• GSCCCAmustmodifysystemtoincludenoticesofstatetaxlien

executions.

Status:• EnactedonMay9,2017• TakeseffectJanuary1,2018

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Idaho House Bill 203

CreatesaStatewideElectronicfilingSystem• Appliestoallrecordsfiledwiththesecretaryofstate.

AuthorizesCollectionofPersonalData• SecretaryofStatemaycollectcertainuserpersonal

information.• Usedtoestablish,verifyandvalidateusersofnewsystem.

Status:• EnactedonMarch24,2017.• TakeseffectJuly1,2017.

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Illinois House Bill 2450 & Senate Bill 1280

PurposeofLegislation• EnactsStateTaxLienRegistrationAct.

Effect:• CreatesstatetaxlienregistrymaintainedbytheDepartmentof

Revenue.• Ataxlienwillbeperfectedbyinclusionintheregistry.

Status:• Bothbillsarestillpendingintheirrespectivechambers.

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Iowa House Bill 142PurposeofLegislation

• CreatesacentralnotificationsystemforsecurityinterestsinfarmproductsunderthefederalFoodSecurityAct.

Effect:• ProvidesforthefilingofEffectiveFinancingStatementrecords

(EFS)withthesecretaryofstate.• Requiresthesecretaryofstatetocreatethecentralnotification

systemandobtaincertificationbytheU.S.DepartmentofAgriculture.

• RequiresthesecretaryofstatetocompileamasterlistofEFSrecordsandregularlydistributeittobuyersoffarmproducts.

Status:• LeftpendinginHousecommitteeatadjournment.

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Nebraska L 142

PurposeofLegislation• RevisesrequirementsforEffectiveFinancingStatementsunder

theFoodSecurityAct.

Effect:• Providesthatachangetothesecuredparty’snameisnota

materialchangethatrequiresamendmentofanEFSrecord.

Status:• EnactedMay10,2017• Tookeffectimmediately

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North Carolina House Bill 749

PurposeofLegislation• Createsalimiteddriver’slicenseandlimitedidentificationcard

forillegalaliens.

Effect:• Addsthelimiteddriver’slicenseandlimitedidentificationcard

to§ 9‐503(a)(4),creatingawaterfallforsufficiencyofindividualdebtorname.

Status:• IntroducedonApril13,2017• RemainspendinginHouseJudiciaryCommittee.

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Tennessee House Bill 156, Senate Bill 171

PurposeofLegislation• Extendstimeperiodforperfectionofapurchase‐money

securityinterestfromanalreadynon‐uniform30daysto60days.

Effect:• Couldmakesearcheslessreliablebecausesecurityinterests

withspringingprioritycouldarisefor60daysaftersearch.• Similartobillsintroducedinpastsessions.

Status:• Bothbillsfailedtopassoutofcommitteein2017butwillcarry

overintothe2018session.

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Texas House Bill 3969

PurposeofLegislation• Createsacentralnotificationsystemforsecurityinterestsin

farmproductsunderthefederalFoodSecurityAct.

Effect:• Amendedincommitteetodirectsecretaryofstatetostudythe

feasibilityofimplementingacentralnotificationsystem.

Status:• PassedHouseonMay6,2017• PendinginSenateBusinessandCommerceCommitteeasof

May18,2017.

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FraudulentUCCFiling

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Arkansas Senate Bill 414

PurposeofLegislation• AddsasectiontoArticle9withsomeelementsoftheULC“Hip‐

Pocket”amendments.• Allowsafilingofficetofileaterminationstatementifaperson

namedasdebtorfilesanaffidavit.• Noexceptionforrecordsfiledbyatrustedfiler.

Effect:• Requiresfilingofficetosendnoticeofterminationtoall

securedparties.• Providesforjudicialreviewandreinstatement.

Status:• Enacted.TakeseffectonJuly31,2017.

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Connecticut Senate Bill 931

PurposeofLegislation• PreventfraudulentfilingofUCCrecords.

Effect:• Makesthefilingofafalserecordwithintenttodefraud,

deceive,injureorharassanotherafelony.• AmendstheCT’sversionofUCC5‐518toprovidethataperson

namedinafalserecordmaypetitionthecourttoinvalidatetherecord,whensuchrecordwasfalselyfiledoramended.

Status:• DiedincommitteeonApril7,2017.

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Illinois House Bill 3150

PurposeofLegislation• Addressfraudulentfilingatthecountylevel.

Effect:• Authorizescountyrecorderstoadoptareviewandreferral

processforpotentiallyfraudulentdocuments.• ProvideslistoffactorstheRecordershouldconsideraspartof

thereview(mostlySovereignCitizenandredemptioncharacteristics).

• Recordermayreferthepotentiallyfraudulentdocumentstoanadministrativelawjudgeforreviewandtolawenforcement.

Status:• PassedHouse.AwaitingThirdReadingintheSenate.

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Iowa HSB 180

PurposeofLegislation• PreventfraudulentUCCfilingandofferadditionalremedies.

Effect:• AmendsUCC§ 9‐516(b)torequirethefilingofficetorejecta

UCCrecordifthedebtorandsecuredpartyappeartobethesameperson,althoughthefilingofficemayaccepttherecordwithreasonableproofthatthepartiesarenotthesame.

• MakesitacrimetocommunicatearecordtothefilingofficewithoutauthorizationunderUCC§ 9‐509withtheintenttoharassordefraudthepersonidentifiedasdebtor.

Status:• PendinginHouseWaysandMeansCommittee.Carryoverto

2018

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Kansas Senate Bill 10

PurposeofLegislation• Preventrecidivistfraudulentfiling.

Effect:• Amendsexistinglawthatprohibitsfilingfalseliensagainst

publicofficials.• Providesthatifacourtrulesthataclaimshouldbesetaside

thenitsfindingsoffactandconclusionsoflawshouldprohibitthepersonfromfilingfuturelienswithoutcourtpermission.

Status:• PassedJudiciaryCommitteeonFebruary10,2017.• WithdrawnonMarch6,2017.

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Missouri HB 303, HCB 1, SB 128, SB 332

PurposeofLegislation• PreventfraudulentUCCfilingandofferadditionalremediesfor

victims.

Effect:• ProvidesthatfilingorattemptingtofileafraudulentUCCor

otherrecordisafelony.• Includesexpeditedreviewforvictimsoffraudulentlyfiled

records.

Status:• SB128deliveredtogovernoronMay22,2017.

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New York

MultipleSimilarBills• AB4498,SB206,&SB3707.

PurposeofLegislation• Providecriminalpenaltiesforfilingfalseliensagainstpublic

officials.

Effect:• Makesfilingafalselienagainsttherealorpersonalpropertyof

apublicofficialonaccountofperformanceofofficialdutiesafelony.

Status:• Allpending.

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Pennsylvania Senate Bill 349

PurposeofLegislation• Relatedtofraudulentfiling.

Effect:• Makesitacrimetosimulatelegalprocess,includingactions

thataffecttitletorealorpersonalproperty.• LanguageisbroadenoughtoencompassfraudulentUCC

recordsandsimilarfalseliens.• Makesitacrimetohinderpublicofficialsandtouseunofficial

licenseplates.

Status:• PendinginJudiciaryCommittee.

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Tennessee House Bill 535 & Senate Bill 726

PurposeofLegislation• Relatedtofraudulentfiling.

Effect:• Permitsapublicofficialnamedasdebtorinafinancing

statementtofileanotarizedaffidavitthatsetsforthfactswhytheUCCrecordwasfiledwithoutlegalbasisorcause.

• ProvidesforthesecretaryofstatetoremovethecontestedrecordfromtheUCCindexafteraperiodoftime.

• Providesamethodforthesecuredpartytocontesttheaffidavitthroughahearingbeforeanadministrativelawjudge.

Status:• ThegovernorsignedSB726onMay18,2017.• TakeseffectOctober1,2017,rulemakingbeginsimmediately.

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New Hampshire HB 535

Content• Findsthatcorporatestateemployeeshave,bytheirsilence,

failedtofullyinformthesovereignpeopleofthisstatethatanautomobilehasbeendeemedbythecourtsadministratingtheUCC,asprivatepropertydefinedas‘householdgoods’notforcommercialuseorforprofitorgain.

• Furtherfindsthatthecourtshavefoundthedivisionofmotorvehiclesfailuretofullyinformthesovereignsas‘deceptiveinitsofficers’and,assuch,afraud.”

• RequiresthattheDMVissueatnocostnon‐commercialdriver’slicensesandIDcardsthatindicatetheyareUCCexempt.

• TheDMVmustalsoissuevehicledecalsthatindicateregistrationisnotrequiredundertheUCC.

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New Hampshire HB 618

Content• Disbandthebureauofcertificateoftitle.• Requiretheattorneygeneralto“immediatelyinvestigateand

determinewhoinitiatedthedeceptionthathasburdenedthepeoplewiththeexcessivecostoftheirrighttotravel.

• Uponsuchdeterminationtheattorneygeneralshallprosecutetheculpritsthathaveunlawfullytrespasseduponthepeople'srighttotravelandcommittedthecommonlawcrimeofunlawfulconversionofpeople'sprivateproperty.

Status:• Bothbillswerenonstarters.

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Thank you:

Paul HodnefieldAssociate General CounselCorporation Service Company2345 Rice Street, Suite 230Roseville, MN 55113

Direct: 651-494-1730Toll Free: 800-927-9801, ext 61730Cell: 952-649-1555Email: [email protected]

This presentation is not intended to be legal advice. You should not act or rely on any information contained in this presentation without seeking the advice of an attorney.

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