Revised Article 1 Update (5/25)

As legislative sessions draw near to adjournment in many states, here is a quick update on the status of Revised Article 1. Thus far this year, Arkansas, Montana, Nebraska, New Mexico, and Oklahoma have enacted versions of Revised Article 1, bringing the total number of enacting states to 12. All twelve enacting states have rejected uniform R1-301 in favor of language similar to existing 1-105 and five (Alabama, Hawaii, Idaho, Nebraska, and Virginia) have rejected uniform R1-201(b)(20) in favor of retaining the current definitions of “good faith” in Articles 1, 2, 2A, 3, 4, 4A, 8 & 9. Otherwise, the enacting states have made few if any change to the text of uniform Revised Article 1.

Yesterday (5/24), the Connecticut Senate unanimously approved HB 6985, and today (5/25) the Nevada Assembly did likewise to SB 201, clearing the final legislative hurdle to enactment in their respective states. Once each bill is transmitted to Governors Jodi Rell and Kenny Guinn, respectively, each will have five calendar days (excluding any Sunday or legal holiday falling within the five day period) to sign or veto the bill before it is deemed enacted as a matter of law. Given the looming Memorial Day weekend, it will likely be next week before either governor acts. As do their twelve predecessors, Connecticut HB 6985 and Nevada SB 201 reject uniform R1-301 in favor of language similar to existing 1-105. As do seven of their predecessors, HB 6985 and SB 201 opt for uniform R1-201(b)(20) over retaining the current definitions of “good faith” in Articles 1, 2, 2A, 3, 4, 4A, 8 & 9.

Illinois SB 1647, which the Illinois Senate approved unanimously before either Connecticut HB 6985 or Nevada SB 201 made it out of their originating houses, appears to have stalled. After languishing on the House Executive Committee’s docket for more than two weeks, it was re-referred by rule to the Rules Committee, from which it is unlikely to emerge.

The bills introduced earlier this year in Arizona, Kansas, New Hampshire, and West Virginia died on the vine.