Revised Article 1 Legislative Update (4/1)
As of April 1, 2005, eight states – Alabama, Arkansas, Delaware, Hawaii, Idaho, Minnesota, Texas, and Virginia – have enacted versions of Revised U.C.C. Article 1 (and all but Arkansas’s are now in effect), and bills proposing the adoption of Revised Article 1 await further legislative or executive action in Arizona, Connecticut, Illinois, Kansas, Montana, Nebraska, Nevada, New Hampshire, New Mexico, Oklahoma, and West Virginia.
The newest arrival is West Virginia, where essentially (if not entirely) identical bills were recently introduced in the house (HB 3095) and senate (SB 660). Both bills reject the “uniform” version of R1-301 and embrace the “uniform” version of R1-201(b)(20). HB 3095 was introduced on March 18, 2005, and is presently before the House Judiciary Committee. SB 660 was introduced on March 21, was reported favorably from the Interstate Cooperation Committee on March 25, and is presently before the Senate Judiciary Committee. Both introductions appear to come too late in the legislative session to have much chance of adoption this year. The West Virginia Legislature is scheduled to adjourn on April 9; and March 30 was the last day to consider a bill on the third reading in its originating chamber.
Elsewhere:
Illinois SB 1647‘s sponsor’s floor amendment appears to be languishing in the Senate Rules Committee, and the bill with it. If I am reading the legislative calendar correctly, the Rules Committee – and, if necessary, the Judiciary Committee – must approve the amendment and report amended SB 1647 favorably by April 15 for it to have any chance of enactment this year.
Montana SB 401 has passed both houses of the legislature and will be sent to the governor after being enrolled.
On April 1, the Nebraska Legislature approved LB 570, as amended, by a vote of 48-0-1 and transmitted it to the governor, who must veto LB 570 by the end of the day Thursday, April 7; otherwise, it will become law with or without his signature.
Nevada SB 201 was introduced March 17, 2005, and was referred to the Senate Judiciary Committee. The committee held a public hearing on March 31 and referred SB 201 to a subcommittee for prompt action. The deadline for the committee report is April 15.
The New Hampshire House Commerce Committee held a hearing on HB 719 on March 16, 2005. On March 21, the committee referred the bill to a subcommittee. On March 22, the committee voted to retain the bill in committee. This appears to signal that the bill will not pass this session, as March 30 was the deadline for House action on non-budget bills originated in the House.
The New Mexico House and Senates both unanimously approved HB 834 in mid-March. It still awaits gubernatorial approval. Governor Bill Richardson has until noon on April 8 to sign HB 834. If he does not sign it by that deadline, the bill will not become law this year.
The Oklahoma House of Representatives unanimously approved the committee substitute for HB 2028 on March 16. It is presently before the Senate Judiciary Committee. The Senate Judiciary Committee must report on HB 2028 by April 7; thereafter, the deadline for final reading in the Senate is April 28 and the Oklahoma Legislature adjourns sine die on May 27.
There has been no indication of progress on Arizona SB 1234, Connecticut HB 5975, or Kansas HB 2453.
The four bills that appear to be closest to enactment – New Mexico HB 834, Montana SB 401, Nebraska LB 570, and Oklahoma HB 2028 – all reject uniform R1-301. Thus, if Montana SB 401, Nebraska LB 570, New Mexico HB 834, and Oklahoma HB 2028 were enacted in their present forms, the tally would be 12-0 against uniform R1-301. Moreover, if Montana SB 401, Nebraska LB 570, New Mexico HB 834, and Oklahoma HB 2028 were enacted in their present forms, they would make the split among enacting jurisdictions over the definition of “good faith” 7-5 in favor of uniform R1-201(b)(20) – with Montana, New Mexico, and Oklahoma adopting the new definition in uniform R1-201(b)(20) and Nebraska retaining the pre-revised definitions in 1-201(19) and 2-103(1)(b).