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Committee hears technical corrections to UCC transition provisions in House Bill 5109
Summary
House Bill 5109 would amend transition dates in last year’s Uniform Commercial Code changes to restore the intended preparation window for businesses and banks after an earlier drafting error closed that window prematurely.
Speaker Pro Tempore Kennedy introduced House Bill 5109, a cleanup bill to correct drafting errors in the transition provisions of recent Uniform Commercial Code (UCC) amendments.
Thomas Hemmendinger told the committee the earlier legislation adopted last year created a readiness window so businesses could adjust contract forms and transaction procedures before new provisions took effect; a drafting error closed that window before the law’s implementation. The bill would change a date in the transition language from Jan. 1, 2024, to the act’s effective date of June 10, 2024, reopening the intended preparation period.
Kennedy and Hemmendinger said the change is technical and retroactive only to allow the previously adopted law to be fully implemented as intended. Committee members asked no substantive policy questions; the bill was presented and heard but not finally acted on at the session because the committee adopted a motion to hold bills for further study.
