Bill Text: MI HB6370 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Commercial code: other; references to uniform commercial code in uniform electronic transactions act; revise. Amends secs. 3, 16 & 18a of 2000 PA 305 (MCL 450.833 et seq.). TIE BAR WITH: HB 6347'26
Sponsorship: Partisan Bill (Republican 2)
Status: (Introduced) 2026-09-29 - Bill Electronically Reproduced 09/24/2026 [HB6370 Detail]
Download: Michigan-2025-HB6370-Introduced.html
HOUSE BILL NO. 6370
A bill to amend 2000 PA 305, entitled
"Uniform electronic transactions act,"
by amending sections 3, 16, and 18a (MCL 450.833, 450.846, and 450.848a), section 3 as amended by 2020 PA 247, section 16 as amended by 2014 PA 102, and section 18a as amended by 2020 PA 335.
the people of the state of michigan enact:
Sec. 3. (1) Except as otherwise provided in subsection (2) and section 4, this act applies to electronic records and electronic signatures relating to a transaction.
(2) Except as otherwise provided in section 18a, this act does not apply to a transaction to the extent it the transaction is governed by either of the following:
(a) A law governing the creation and execution of wills, codicils, or testamentary trusts.
(b) Except as otherwise provided in subsection (3), the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.9994.440.12501.
(3) This act applies to a transaction to the extent it the transaction is governed by section 1206 or 1306 or article 2 or 2A of the uniform commercial code, 1962 PA 174, MCL 440.1206, 440.1306, and 440.2101 to 440.2982.
(4) A transaction subject to this act is also subject to other applicable substantive law.
Sec. 16. (1) As used in this section, "transferable record" means an electronic record that meets both of the following:
(a) Would be a note under article 3 of the uniform commercial code, MCL 440.3101 to 440.3605, or a document under article 7 of the uniform commercial code, MCL 440.7101 to 440.7702, if the electronic record were in writing.
(b) The issuer of the electronic record expressly has agreed is a transferable record.
(1) (2) A person has control of a transferable record if a system employed for evidencing the transfer of interests in the transferable record reliably establishes that person as the person to which the transferable record was issued or transferred.
(2) (3) A system satisfies subsection (2), (1), and a person is considered to have control of a transferable record, if the transferable record is created, stored, and assigned in a manner that all of the following apply:
(a) A single authoritative copy of the transferable record exists that is unique, identifiable, and, except as otherwise provided in subdivisions (d), (e), and (f), unalterable.
(b) The authoritative copy identifies the person asserting control as 1 of the following:
(i) The person to which the transferable record was issued.
(ii) If the authoritative copy indicates that the transferable record has been transferred, the person to which the transferable record was most recently transferred.
(c) The authoritative copy is communicated to and maintained by the person asserting control or its designated custodian.
(d) Copies or revisions that add or change an identified assignee of the authoritative copy can be made only with the consent of the person asserting control.
(e) Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy.
(f) Any revision of the authoritative copy is readily identifiable as authorized or unauthorized.
(3) (4) Except as otherwise agreed, a person having control of a transferable record is the holder, as that term is defined in section 1201 of the uniform commercial code, 1962 PA 174, MCL 440.1201, of the transferable record and has the same rights and defenses as a holder of an equivalent record or writing under the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.12501, including, if the applicable statutory requirements under section 3302(1), 7501, or 9308 of the uniform commercial code, 1962 PA 174, MCL 440.3302, 440.7501, and 440.9308, are satisfied, the rights and defenses of a holder in due course, a holder to which a negotiable document of title has been duly negotiated, or a purchaser. Delivery, possession, and indorsement endorsement are not required to obtain or exercise any of the rights under this subsection.
(4) (5) Except as otherwise agreed, an obligor under a transferable record has the same rights and defenses as an equivalent obligor under equivalent records or writings under the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.12501.
(5) (6) If requested by a person against which enforcement is sought, the person seeking to enforce the transferable record shall provide reasonable proof that the person is in control of the transferable record. Proof may include access to the authoritative copy of the transferable record and related business records sufficient to review the terms of the transferable record and to establish the identity of the person having control of the transferable record. The department of technology, management, and budget shall determine for each department whether, and the extent to which, the department will create and retain electronic records and convert written records to electronic records.
(6) (7) As used in this section, "uniform commercial code" means the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.9994."transferable record" means an electronic record for which both of the following are true:
(a) The transferable record would be a note under article 3 of the uniform commercial code, 1962 PA 174, MCL 440.3101 to 440.3605, or a document under article 7 of the uniform commercial code, 1962 PA 174, MCL 440.7101 to 440.7702, if the electronic record were in writing.
(b) The issuer of the electronic record expressly has agreed that the transferable record is a transferable record.
Sec. 18a. (1) Notwithstanding any other provision of this act, for the period beginning April 30, 2020 and ending June 30, 2021, strict compliance with section 18 is suspended to permit each state department to send and accept electronic records and electronic signatures to and from other persons without a determination from or approval by the department of technology, management, and budget.
(2) Except as otherwise provided in this subsection, this act applies to a transaction that is governed by the uniform commercial code and entered into on or after April 30, 2020 and before July 1, 2021. During the time period described in this subsection, to the extent there is a conflict between the uniform commercial code and this act, the uniform commercial code controls.
(3) As used in this section, "the uniform commercial code" means the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.9994.440.12501.
Enacting section 1. This amendatory act does not take effect unless House Bill No. 6347 (request no. H02809'25) of the 103rd Legislature is enacted into law.
