IACA Legislative Update 2017 05182017
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Legislative Update: 2017 IACA Conference, Halifax, Nova Scotia Presented By: Paul Hodnefield Associate General Counsel Corporation Service Company
Transcript of 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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