republic-os/legislation/us/states/va/2024/hb-1286.md

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type	title	description	jurisdiction	legislature	session	identifier	citation	classification	subjects	status	primary_sponsors	version_count	action_count	vote_count	first_action	last_action	source	source_identifier	source_url	source_hash	vintage	source_snapshot	retrieved_at	confidence	tags
Bill	Uniform Commercial Code; amendments to provisions.	Uniform Commercial Code; amendments. Makes a number of amendments to the Uniform Commercial Code (UCC) as adopted in Virginia. The bill amends the definitions of "money" and "conspicuous" for purposes of the UCC and makes extensive amendments throughout provisions related to UCC Article 9 to accommodate emerging technologies. Such amendments include updating the traditional rules for attachment and perfection to apply to digital assets, such as controllable electronic records, and changes to several definitions, including "chattel paper," which is reconfigured to reflect the concept that chattel paper is a secured party's or lessor's right to payment that is secured by specific goods or owned by a lessee under an agreement that includes specific goods, if evidenced by a tangible or electronic record. Under current law, UCC Article 9 provides that perfection of money is through possession; however, since the definition of "money" is amended by this bill to include intangible assets, the amended provisions related to UCC Article 9 describe perfection by control, requiring the electronic money to either be in a deposit account or evidenced through a controllable electronic record. Further amendments to provisions related to UCC Article 9 include updates to governing law provisions for perfection and priority of security interests in chattel paper and in controllable electronic records, controllable accounts, and controllable payment intangibles.The bill includes amendments to provisions governing sales and leases to provide clarification regarding hybrid or bundled transactions and adds definitions for "hybrid transaction" and "hybrid lease." The bill provides the following approach to the application of provisions related to sales or leases in hybrid or bundled transactions: if the goods aspect of the hybrid transaction predominates, then the provisions that relate to sales or leases apply, but if other aspects predominate, then the provisions that relate primarily to the goods but not the transaction as a whole apply.The bill also adds a new title that parallels UCC Article 12, relating to controllable electronic records, as defined in the bill, and explaining the payment rights of a purchaser of an electronic record when such record is transferred. To fall within the scope of these provisions, the bill specifies that an electronic record must be controllable. The bill provides that to transfer the economic value associated with the controllable electronic record, or to receive the benefits associated with the controllable electronic record free of competing property interests, a person must have control of the controllable electronic record, which depends on requirements as described in the bill. The new title that parallels UCC Article 12 also describes qualifying purchasers of controllable electronic records, debtor security interests in relation to the person identified as in control of the controllable electronic record, and how to demonstrate control for purposes of priority and order of payment rights. These new provisions also include choice of law provisions to determine jurisdiction of a controllable electronic record.The bill includes a number of transition provisions to address perfection and priority issues that may arise after the effective date of the bill. Under the transition provisions of the bill, the Commonwealth may provide an adjustment date of one year after the effective date of the bill to allow persons with established perfection or priority to perfect their interests that may otherwise be affected or lost after the adjustment date based on the UCC amendments in the bill. Finally, the bill makes technical amendments throughout the UCC.As introduced, this bill was a recommendation of the Virginia Commissioners to the National Conference of Commissioners on Uniform State Laws. The bill has a delayed effective date of July 1, 2025.	us/states/va	Virginia General Assembly	2024	HB 1286	Virginia HB 1286 (2024)	bill		enacted	C.E. Cliff Hayes, Jr.	3	29	7	2024-01-10	2024-04-08	openstates	ocd-bill/e9a9ace5-1f7d-4ad9-a615-aefc51a5e862	https://lis.virginia.gov/cgi-bin/legp604.exe?241+sum+HB1286	47d42ea44f042a7d64e1219808d258b618b0553940647c8340a5d49bbe94191c	2026-07-01	https://data.openstates.org/daily/2026-07-01/public.pgdump	2026-07-06	reported	legislation bill us-va

Virginia HB 1286 (2024) — Uniform Commercial Code; amendments to provisions.

Uniform Commercial Code; amendments. Makes a number of amendments to the Uniform Commercial Code (UCC) as adopted in Virginia. The bill amends the definitions of "money" and "conspicuous" for purposes of the UCC and makes extensive amendments throughout provisions related to UCC Article 9 to accommodate emerging technologies. Such amendments include updating the traditional rules for attachment and perfection to apply to digital assets, such as controllable electronic records, and changes to several definitions, including "chattel paper," which is reconfigured to reflect the concept that chattel paper is a secured party's or lessor's right to payment that is secured by specific goods or owned by a lessee under an agreement that includes specific goods, if evidenced by a tangible or electronic record. Under current law, UCC Article 9 provides that perfection of money is through possession; however, since the definition of "money" is amended by this bill to include intangible assets, the amended provisions related to UCC Article 9 describe perfection by control, requiring the electronic money to either be in a deposit account or evidenced through a controllable electronic record. Further amendments to provisions related to UCC Article 9 include updates to governing law provisions for perfection and priority of security interests in chattel paper and in controllable electronic records, controllable accounts, and controllable payment intangibles.The bill includes amendments to provisions governing sales and leases to provide clarification regarding hybrid or bundled transactions and adds definitions for "hybrid transaction" and "hybrid lease." The bill provides the following approach to the application of provisions related to sales or leases in hybrid or bundled transactions: if the goods aspect of the hybrid transaction predominates, then the provisions that relate to sales or leases apply, but if other aspects predominate, then the provisions that relate primarily to the goods but not the transaction as a whole apply.The bill also adds a new title that parallels UCC Article 12, relating to controllable electronic records, as defined in the bill, and explaining the payment rights of a purchaser of an electronic record when such record is transferred. To fall within the scope of these provisions, the bill specifies that an electronic record must be controllable. The bill provides that to transfer the economic value associated with the controllable electronic record, or to receive the benefits associated with the controllable electronic record free of competing property interests, a person must have control of the controllable electronic record, which depends on requirements as described in the bill. The new title that parallels UCC Article 12 also describes qualifying purchasers of controllable electronic records, debtor security interests in relation to the person identified as in control of the controllable electronic record, and how to demonstrate control for purposes of priority and order of payment rights. These new provisions also include choice of law provisions to determine jurisdiction of a controllable electronic record.The bill includes a number of transition provisions to address perfection and priority issues that may arise after the effective date of the bill. Under the transition provisions of the bill, the Commonwealth may provide an adjustment date of one year after the effective date of the bill to allow persons with established perfection or priority to perfect their interests that may otherwise be affected or lost after the adjustment date based on the UCC amendments in the bill. Finally, the bill makes technical amendments throughout the UCC.As introduced, this bill was a recommendation of the Virginia Commissioners to the National Conference of Commissioners on Uniform State Laws. The bill has a delayed effective date of July 1, 2025.

Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. CHAP0652 (committee substitute) — source
2. HB1286ER (committee substitute) — source
3. Prefiled and ordered printed; offered 01/10/24 24102847D (committee substitute) — source

Votes

• Reported from Labor and Commerce (22-Y 0-N) — 22–0 (pass) · lower
• Passed Senate with amendments (40-Y 0-N) — 40–0 (pass) · upper
• VOTE: Adoption (99-Y 0-N) — 98–0 (pass) · lower
• Constitutional reading dispensed (40-Y 0-N) — 40–0 (pass) · upper
• Subcommittee recommends reporting (8-Y 0-N) — 8–0 (pass) · lower
• Reported from Commerce and Labor with amendments (14-Y 0-N) — 14–0 (pass) · upper
• VOTE: Block Vote Passage (99-Y 0-N) — 98–0 (pass) · lower

Sponsors

• C.E. Cliff Hayes, Jr. — primary (person)

Timeline

The legislative action history — every referral, reading, and vote.

• 2024-01-10 Prefiled and ordered printed; offered 01/10/24 24102847D filing, introduction
• 2024-01-10 Referred to Committee on Labor and Commerce referral-committee
• 2024-01-23 Assigned L & C sub: Subcommittee #2 referral-committee
• 2024-02-08 Subcommittee recommends reporting (8-Y 0-N)
• 2024-02-08 Reported from Labor and Commerce (22-Y 0-N) committee-passage
• 2024-02-11 Read first time reading-1
• 2024-02-12 Read second time and engrossed reading-2
• 2024-02-13 Read third time and passed House BLOCK VOTE (99-Y 0-N) passage, reading-3
• 2024-02-13 VOTE: Block Vote Passage (99-Y 0-N) passage
• 2024-02-14 Constitutional reading dispensed
• 2024-02-14 Referred to Committee on Commerce and Labor referral-committee
• 2024-03-04 Senate committee, floor amendments and substitutes offered
• 2024-03-04 Reported from Commerce and Labor with amendments (14-Y 0-N) committee-passage
• 2024-03-05 Constitutional reading dispensed (40-Y 0-N)
• 2024-03-06 Read third time reading-3
• 2024-03-06 Reading of amendments waived
• 2024-03-06 Committee amendments agreed to amendment-passage
• 2024-03-06 Engrossed by Senate as amended
• 2024-03-06 Passed Senate with amendments (40-Y 0-N) passage
• 2024-03-07 Senate amendments agreed to by House (99-Y 0-N) amendment-passage
• 2024-03-07 VOTE: Adoption (99-Y 0-N)
• 2024-03-25 Enrolled enrolled
• 2024-03-25 Bill text as passed House and Senate (HB1286ER) passage
• 2024-03-25 Signed by President passage
• 2024-03-26 Signed by Speaker passage
• 2024-03-27 Enrolled Bill communicated to Governor on March 27, 2024 enrolled, executive-receipt
• 2024-03-27 Governor's Action Deadline 11:59 p.m., April 8, 2024 executive-receipt
• 2024-04-08 Approved by Governor-Chapter 652 (effective 7/1/25) executive-signature
• 2024-04-08 Acts of Assembly Chapter text (CHAP0652)

Source

OpenStates / OpenCivicData bulk snapshot 2026-07-01; origin ocd-bill/e9a9ace5-1f7d-4ad9-a615-aefc51a5e862. Confidence: reported (aggregated from official Virginia legislature records).