The bill, designated as sHB6970, proposes extensive amendments to the Uniform Commercial Code (UCC) to modernize legal definitions and frameworks governing commercial transactions, particularly in light of emerging technologies and digital assets. Key changes include the introduction of a new Article 12, which establishes rules for "controllable electronic records" (CERs), encompassing digital assets like cryptocurrencies and non-fungible tokens (NFTs). The bill clarifies the rights of purchasers, methods for obtaining control of these assets, and requirements for discharging obligations. Additionally, it modifies existing articles to align with the new provisions, including updates to secured transactions, negotiable instruments, and hybrid transactions that combine sales or leases with services. The effective date for these changes is set for January 1, 2026.

Significant amendments include the expansion of definitions to include electronic signatures, the replacement of "authenticated" with "signed" throughout the UCC, and the establishment of clearer rules for the perfection and priority of security interests in various types of collateral, including electronic money and chattel paper. The bill also emphasizes the importance of transparency in transactions, requiring detailed notifications regarding the disposition of collateral and outlining the responsibilities of secured parties. Overall, the bill aims to enhance clarity, efficiency, and consumer protection in commercial transactions while ensuring that existing rights and interests remain valid under the new legal framework.

Statutes affected:
Raised Bill: 1-204, 1-306, 2-102, 2-106, 2-201, 2-202, 2-203, 2-205, 3-401, 5-104, 5-116, 7-106, 8-102, 8-103, 8-106, 8-110, 8-303, 9-102, 9-104, 9-105, 9-204, 9-210, 9-301, 9-312, 9-313, 9-314, 9-316, 9-317, 9-323, 9-324, 9-330, 9-331, 9-332, 9-341, 9-406, 9-408, 9-509, 9-513, 9-605, 9-608, 9-611, 9-613, 9-614, 9-616, 9-620, 9-621, 9-624, 9-628, 1-1a
JUD Joint Favorable Substitute: 1-204, 1-306, 2-102, 2-106, 2-201, 2-202, 2-203, 2-205, 3-401, 5-104, 5-116, 7-106, 8-102, 8-103, 8-106, 8-110, 8-303, 9-102, 9-104, 9-105, 9-204, 9-210, 9-301, 9-312, 9-313, 9-314, 9-316, 9-317, 9-323, 9-324, 9-330, 9-331, 9-332, 9-341, 9-406, 9-408, 9-509, 9-513, 9-605, 9-608, 9-611, 9-613, 9-614, 9-616, 9-620, 9-621, 9-624, 9-628, 1-1a
File No. 809: 1-204, 1-306, 2-102, 2-106, 2-201, 2-202, 2-203, 2-205, 3-401, 5-104, 7-106, 8-102, 8-103, 8-106, 8-110, 8-303, 9-102, 9-104, 9-105, 9-204, 9-210, 9-301, 9-312, 9-313, 9-314, 9-316, 9-317, 9-323, 9-324, 9-330, 9-331, 9-332, 9-341, 9-406, 9-408, 9-509, 9-513, 9-605, 9-608, 9-611, 9-613, 9-614, 9-616, 9-620, 9-621, 9-624, 9-628, 1-1a