Bulletin: WY2016002

Dear Associates:

The following are summaries of some of the bills passed during the 2016 legislative budget session of interest to the title insurance industry.

HB0107 - Adopts the Uniform Real Property Electronic Recording Act which relates to the electronic recording of documents. It validates electronic real property documents for recording and authorizes the recording of these documents by county clerks. It also requires the Department of Enterprise Technology Services to promulgate standards, practices, technology views and needs when adopting rules relating to the Act. County clerks who accept electronic recordings of real property documents must establish procedures governing the electronic recordings consistent with these rules. The clerk can also provide for access to and search and retrieval of documents by electronic means.

The section of the Act requiring the ETS to promulgate rules is currently in effect. The remainder of the act is effective January 1, 2017.

HB0108 - Provides that a foreign limited liability company shall do business in Wyoming by complying with the same procedures applicable to foreign corporations when operating in Wyoming. This includes obtaining a certificate of authority to transact and carry on business which can be revoked and reinstated in the same manner as corporations.

Effective March 4, 2016.

SF0036 - This bill relates to the possibility of imposing individual liability on members or managers of limited liability companies for the debts, obligations and other liabilities of the company. The court is allowed to consider only the following factors when considering whether to impose liability: fraud; inadequate capitalization; failure to observe legally required company formalities; and intermingling of assets, operations, and finances of the company and the members to the extent there is no distinction between them. However, in any analysis conducted under the above, the court shall not consider certain factors that are intrinsic to the character and operation of a limited liability company.

This bill is currently in effect.

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