SB 23-090

Senate Bill 23-090 updates Colorado’s Uniform Commercial Code (UCC) by incorporating the 2022 amendments from the Uniform Law Commission. These changes include updating definitions and provisions related to digital technology, such as electronic signatures and records, to better reflect modern business practices. The bill affects businesses that use or plan to use emerging technologies in their transactions. It was signed into law on May 1, 2023, and will take effect on August 7, 2023, meaning companies should start preparing for these changes by then.

Official Summary

The act incorporates the 2022 amendments to the "Uniform Commercial Code" (UCC), drafted by the Uniform Law Commission. The 2022 amendments update the UCC to account for emerging technologies by: Amending the definitions of "conspicuous", "send", and "sign"; Adding the definition of "electronic"; and Changing current references to "writing" or "written" to refer instead to a "record". The 2022 amendments update the provisions of the UCC related to secured transactions by: Addressing security interests and rights to payment related to controllable electronic records; Specifying how to perfect security interests in controllable accounts and controllable payment intangibles; Updating the definition of "chattel paper" to distinguish between a right to payment and the record evidencing the right to payment; Creating a new definition of "assignee" and "assignor". The act creates a new article within the UCC that governs controllable electronic records, including the transfer of property rights in certain intangible digital assets that have been or may be created and may involve the use of new technologies. The act provides guidance for which laws apply during the transition from the current UCC to the UCC as amended by the act. APPROVED by Governor May 1, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

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