REPORT. of the MARYLAND COMMISSIONERS UNIFORM STATE LAWS THE GOVERNOR. and

REPORT of the MARYLAND COMMISSIONERS on UNIFORM STATE LAWS to THE GOVERNOR and THE GENERAL ASSEMBLY OF MARYLAND 2012 M. MICHAEL CRAMER, Chairman K. KING BURNETT M. KING HILL, JR. ALBERT D. BRAULT STEVEN N. LEITESS Commissioners Dated As Of December 30, 2012

REPORT of the MARYLAND COMMISSIONERS on UNIFORM STATE LAWS TO THE GOVERNOR AND HONORABLE MEMBERS OF THE GENERAL ASSEMBLY OF MARYLAND: The Maryland Commissioners on Uniform State Laws respectfully submit this report for 2012. I. Statutory Authority. The original act providing for the appointment of Commissioners on Uniform State Laws from Maryland was Chapter 264 of the Acts of 1896, the provisions of which have been continued in effect by subsequent acts; the current statute appears in the Maryland Code as Sections 9 201 through 9 206 of the State Government Article. This statute provides for the appointment of three commissioners holding office for terms of four years or until their successors have been appointed; they serve without compensation. It is their duty to represent Maryland in the Uniform Law Commission ( ULC ) (formerly known as the National Conference of Commissioners on Uniform State Laws, or NCCUSL ), a body composed of similar commissioners from all of the 50 states, as well as from the District of Columbia, Puerto Rico and the United States Virgin Islands. II. History of the ULC. In 1889, the New York Bar Association appointed a special committee on uniformity of laws. In the next year, the New York Legislature authorized the appointment of Commissioners "to examine certain subjects of national importance that seemed to show conflict among the laws of the several commonwealths, to ascertain the best means to effect an assimilation or uniformity in the laws of the states, and especially whether it would be advisable for the State of New York to invite the other states of the union to send representatives to a convention to draft uniform laws to be submitted for approval and adoption by the several states." In that same year, the American Bar Association passed a resolution recommending that each state provide for Commissioners to confer with the Commissioners of other states on the subject of uniformity of legislation on certain subjects. In August, 1892, the first ULC convened in Saratoga, New York, three days preceding the annual meeting of the American Bar Association. There have been over 100 Conferences since that time. Maryland joined in 1896. 1

By 1912, every state was participating in the ULC. In each year of service, the ULC has steadily increased its contribution to state law. Because of that contribution, it very early became known as a distinguished body of lawyers. The ULC has attracted some of the best of the profession. In 1912, Woodrow Wilson became a member. This, of course, was before his more notable political prominence and service as President of the United States. Several persons, later to become Justices of the Supreme Court of the United States, have been members. These men are former Justices Brandeis and Rutledge, and former Chief Justice Rehnquist. Legal scholars have served in large numbers. Examples are Professors Wigmore, Williston, Pound and Bogart. Very many distinguished lawyers have served since 1892, though their names are not as well known to the general public. This distinguished body has guaranteed that the products of the ULC are of the highest quality and are influential upon the process of the law. The ULC is a confederation of state interests. It arose out of the concerns of state government for the improvement of the law and for better interstate relationships. Its sole purpose has been, and remains, service to state government and improvement of state law. III. The Operation of the ULC. The ULC is convened as a body once each year. It meets for a period of about eight days, usually during July. In the interim period between the annual meetings, drafting committees composed of Commissioners meet to supply the working drafts that are considered at the annual meeting. At each ULC meeting, the work of the drafting committees is read and debated. Each Act must be considered over a period of years. No Act becomes officially recognized as a Uniform Act until the ULC is satisfied that it is ready for consideration in the state legislatures. It is then put to a vote of the states, during which each state caucuses and votes as a unit at the close of the annual meetings. The governing body is the ULC Executive Committee, and is composed of the officers, certain ex officio members and members appointed by the President of the ULC. Certain activities are conducted by standing committees. For example, the Committee on Scope and Program considers all new subject areas for possible Uniform Acts. The Legislative Committee superintends the relationships of the ULC to the state legislatures. A small staff located in Chicago operates the national office of the ULC. The national office handles meeting arrangements, publications, legislative liaison and general administration for the ULC. The ULC maintains relations with several sister organizations. Official liaison is maintained with the American Bar Association, which contributes an amount each year to the operation of the ULC. Liaison is also maintained with the American Law Institute and The Council of State Governments on an ongoing basis. Liaison and activities may be conducted with other associations as interests and activities necessitate. 2

IV. Work of the Maryland Commissioners in the Conference. The five Maryland Commissioners are M. Michael Cramer, Chairman, K. King Burnett, M. King Hill, Jr., Albert D. Brault and Steven N. Leitess. Messrs. Burnett and Leitess attended and participated in the 2012 meetings of the Conference. Mr. Hill served as President of the National Conference in 1981 1983. He previously served as a member of Section D (1970 71), as Chairman of Division G (1972 73), and for 1973 74 and 1977 83, he served as a member of the Executive Committee of the National Conference, acting as its Chairman in 1979 81. He has also served on the following committees: chairman of the Standby Committee on Model Punitive Damages Act and the Committee on Membership and Attendance (1997 98); Legislative Committee (1971 73); the Special Committee on the Uniform Automobile Accident Claims Act (1970 71); the Uniform Certification of Questions of Law Act (1970 71); the Uniform Class Actions Act (1973 76); the Uniform Juvenile Court Act (1970 71); the Uniform Motor Vehicle Accident Reparations Act (1971 73); the Uniform Rules of Evidence (1970 71); the Uniform Land Transactions Act (1974 76); the Uniform Periodic Payments Act (1975 80); the Uniform Consent to Medical Treatment Act (1977 79); the Model Employment Termination Act (1988 91); the Scope and Program Committee (1973 78, Chairman 1977 78); Chairman of the Committee on Complex Litigation and Alternative Dispute Resolution (1985 87) and Chairman of the Drafting Committee on The Model Punitive Damages Act (1994 97). Mr. Hill was elected a Life Member of the Conference in 1987. Mr. Burnett served as President of the National Conference in 2001 2003. He previously served as chairman of Division A of the ULC and on the Standby Committee on the Revised Uniform Interstate Family Support Act during 1997. He has served on the Executive Committee of the National Conference (1985 87); the Joint Editorial Board for International Law; the Drafting Committee for Model Protection of Charitable Assets Act (Chairman); the Study Committee on the Regulation of Charities; the Review Committee of the Marital Property Act (1981 83); the Drafting Committee on the Uniform Conservation Easement Act (1978 80); the Study Committee on the Uniform Arbitration Act (1981 82); as Chairman of the Drafting Committee on the Uniform Health Care Information Act (1982 85); Chairman of the Conference Scope and Program Committee and on the Executive Committee. He also served on the Committee on Liaison with the Federal Government. Mr. Cramer served as a member of the Drafting Committee on the Uniform Arbitration Act. He served on the Drafting Committee for the Uniform Privacy Act from 1977 82, on the Drafting Committee on the Criminal Records Act from 1983 85, on the Drafting Committee on the Uniform Construction Lien Act from 1985 87, and on the Standby Committee on the Foreign Money Claims Act and the Study Committee on revisions to the Uniform Arbitration Act. Mr. Cramer was elected a Life Member of the Conference in 1997. Mr. Leitess serves as chairman of Division A of the ULC and as Maryland s Legislative Liaison between the Maryland General Assembly and the ULC. He also served on 3

the Drafting Committee on Uniform Asset Freezing Orders Act (2010 2012) and the Study Committee on Choice of Law for Fraudulent Transfers (2011 2012), and presently serves on the Drafting Committee on Choice of Law for Fraudulent Transfers and the Drafting Committee on Series of Unincorporated Business Entities. He also served on the Drafting Committee for a Uniform Certificate of Title Act (2005) and the Drafting Committee for the Uniform Recordation of Custodial Interrogations Act (2008 2010). In addition to serving as a ULC Division Chair Mr. Leitess is a member of ULC s Committee on Membership and Attendance (2006 present). V. Status of Uniform and Model Acts in Maryland Acts Enacted in Maryland through the 2011 Session. Maryland has enacted the following uniform and model acts, as follows: i. Absent Persons Act. CJ, Sections 3 101 to 3 106 and 3 108 to 3 110 (An. Code 1957, Art. 16, Sections 200 212; Acts 1966, Chs. 18, 248 and 618; 1973, 1st Sp. Sess., Ch. 2; 1974, Ch. 686; 1975, Ch. 265; 1980, Ch. 130; 1984, Ch. 255) ii. Maryland Uniform Acknowledgements Act SG, Section 19 101 to 19 114; formerly Art. 18, Sections 1 to 14 (Acts 1997, c. 31, 1) iii. Maryland Uniform Act to Secure the Attendance of Witnesses from Without a State in Criminal Proceedings. CJ, Sections 9 301 to 9 306 (An. Code 1957, Art. 27, Sections 617 623; Acts 1973, 1st Sp. Sess., Ch. 2; 1974, Chs. 691 and 864) iv. Maryland Uniform Adult Guardianship and Protective Proceedings Jurisdiction Act. ET, Sections 13.5 101 to 13.5 504 (Acts 2010, c. 256, 1, and Acts 2010, c. 257, 1) v. Aeronautics Acts. TR, Sections 5 101 to 5 1105, under new title: Aviation (An. Code 1957, Art. 1A, Sections 1 100 to 10 1004; Acts 1977, Chs. 13, 777, 779; 1978, Ch. 537; 1979, Chs. 129, 143, 195, 317, 367, 381, 489; 1980, Chs. 287, 291, 376, 417, 734, 775; 1981, Ch. 545; 1982, Chs. 143, 4

343; 1983, Chs. 371, 563; 1985, Chs. 534, 554; 1986, Chs. 5, 396, 859; 1987, Chs. 306, 393, 545; 1988, Chs. 246, 558; 1989, Chs. 108, 509, 618) vi. Air Licensing Act. TR, Sections 5 101 to 5 1105, under new title: Aviation (Art. 1A, Sections 1 106 to 10 1004; Acts 1977, Chs. 13, 777, 779; 1978, Ch. 537; 1979, Chs. 129, 143, 195, 317, 367, 381, 489; 1980, Chs. 287, 291, 376, 417, 734, 775; 1981, Ch. 545; 1982, Chs. 143, 343; 1983, Chs. 371, 563; 1985, Chs. 534, 554; 1986, Chs. 5, 396, 859; 1987, Chs. 306, 393, 545; 1988, Chs. 246, 558) vii. Maryland Anatomical Gift Act (repealed by Maryland Revised Uniform Anatomical Gift Act) (An. Code 1957, Art. 43, Sections 140 149B; Acts 1974, Ch. 11; 1975, Ch. 73; 1976, Ch. 273; 1982, Ch. 770; 1987, Ch. 11; 1989, Ch. 295; repealed by Acts 2011, c. 541, 1, eff. Oct. 1, 2011) viii. Maryland Uniform Arbitration Act. CJ, Sections 3 201 to 3 232 and 3 234 (An. Code 1957, Art. 7, Sections 1 23; Acts 1973, 1st Sp. Sess., Ch. 2; 1974, Ch. 691; 1983, Ch. 563) ix. Maryland Uniform Athlete Agents Act. BR, Sections 4 401 to 4 421 (Acts 2003, c. 421, 2) x. Bills of Lading Act. CL, Sections 18 201(b) to 18 207, 18 401 (An. Code 1957, Art. 14, Sections 1 55; Acts 1910, Ch. 336; 1963, Ch. 538; 1975, Ch. 49; 1976, Ch. 171) xi. Maryland Uniform Certification of Questions of Law Act. CJ, Sections 12 601 to 12 613 (An. Code 1957, Art. 26, Sections 162 172; Acts 1973, Ch. 508; 1973, 1st Sp. Sess., Ch. 2; 1974, Ch. 691; 1976, Ch. 472; Acts of 1996, Ch. 344) 5

xii. Maryland Uniform Child Custody Jurisdiction Act (repealed by Maryland Uniform Child Custody Jurisdiction and Enforcement Act). (An. Code 1957, Art. 16, Sections 184 207; Acts 1975, Ch. 275; 1984, Ch. 296; repealed by Acts 2004, c. 502, 1) xiii. Maryland Uniform Child Custody Jurisdiction and Enforcement Act FL, Sections 9.5 101 to 9.5 318 (Acts 2004, c. 502, 2) xiv. Uniform Cold Storage Act. (HG, Sections 21 501 to 21 528; HE, Sections 4 501 to 4 519; An. Code 1957, Art. 43, Sections 230 242; Acts 1916, Ch. 163; repealed 1987, Ch. 297) xv. Maryland Uniform Commercial Code. CL, Sections 1 101 to 10 112 (An. Code 1957, Art. 95B, Sections 1 101 to 10 104; Acts 1963, Ch. 538) Since originally adopting the UCC in 1957, Maryland has adopted Article 2A (Leases), 1990 Revision of Article 3, 1990 Amendments to Article 4, Article 4A (Funds Transfers), 1995 Revision of Article 5, 2003 Revision of Article 7, 1994 Revision of Article 8, and 1998, 2000 and 2003 Revision of Article 9. xvi. Maryland Uniform Computer Information Transactions Act. CL, Sections 22 101 to 22 816 (Acts 2000, c. 11, 1) xvii. Uniform Contribution Among Tort Feasors Act. CJ, Sections 3 1401 to 3 1409 (An. Code 1951; Acts 1941, Ch. 344; Acts of 1997, Ch. 31) xviii. Maryland Controlled Dangerous Substances Act. Art. 27, Sections 276 to 302 (Acts 1970, Ch. 403; 1971, Chs. 273, 493, 500, 574; 1972, Chs. 181, 278, 397, 487, 616, 642, 659; 1973, Chs. 256, 267, 332, 693, 859; 1974, Chs. 549, 6

666; 1975, Chs. 94, 219, 617, 881; 1976, Ch. 758; 1977, Chs. 115, 124, 552, 765; 1978, Chs. 327, 491, 964; 1979, Chs. 267, 418; 1980, Chs. 223, 540, 874; 1981, Chs. 2, 9, 432, 628, 729; 1982, Chs. 402, 470, 472, 483, 770, 820; 1983, Chs. 8, 302, 407, 437, 438; 1984, Chs. 258, 390, 449, 549, 619, 642; 1985, Chs. 10, 483, 484, 617; 1986, Chs. 181, 208, 343, 575, 676; 1987, Chs. 11, 173, 306, 615, 743, 773, 774; 1988, Chs. 6, 259, 439, 586, 683; 1989, Chs. 5, 285, 286, 287, 288, 289, 572, 679) xix. Uniform Criminal Extradition Act. Art. 41, Sections 2 201 to 2 228 (An. Code 1939; Acts 1937, Ch. 179; 1963, Ch. 610; 1970, Ch. 99; 1972, Ch. 181; 1973, 1st Sp. Sess., Ch. 2, made former Art. 41, Section 38 part of CJ, Section 6 308; 1977, Ch. 570; 1982, Chs. 820, 896; 1986, Ch. 5) xx. Determination of Death. HG, Section 5 202 (An. Code 1957; Acts 1982, Ch. 327; 1983, Ch. 583) xxi. Maryland Uniform Declaratory Judgments Act. CJ, Sections 3 401 to 3 415 (An. Code 1957, Art. 31A, Sections 1 16; Acts 1939, Ch. 294; 1945, Ch. 724; 1973, 1st Sp. Sess., Ch. 2; 1974, Ch. 691; 1976, Chs. 289, 915; 1980, Ch. 712) xxii. Maryland Uniform Disclaimer of Property Interests Act. ET, Sections 9 201 to 9 216 (Acts 2004, c. 465, 1; superseded Acts 1978, Ch. 744; 1989, Ch. 645) xxiii. Maryland Uniform Disposition of Abandoned Property Act. CL, Sections 17 101 to 17 326 (An. Code 1957, Art. 95C; Acts 1966, Ch. 611; 1968, Ch. 550; 1975, Chs. 49, 798; 1976, Chs. 387, 388; 1980, Ch. 79; 1981, Chs. 752, 773, 774; 1982, Chs. 17, 180, 820; 1984, Chs. 255, 526; 1985, Ch. 602; 1986, Ch. 5; 1989, Ch. 375; 1996, Ch. 584) xxiv. The Maryland Uniform Electronic Transactions Act. CL, Sections 21 101 to 21 120 (Acts 2000, c. 8, 1) 7

xxv. Uniform Enforcement of Foreign Judgments Act. CJ, Sections 11 801 to 11 807 (1987, Ch. 497; 1988, Ch. 6; 1989, Ch. 141) xxvi. Maryland Uniform Environmental Covenants Act. EV, Sections 1 801 to 1 815 (Acts 2005, c. 229, 1) xxvii. Maryland Uniform Estate Tax Apportionment Act. TG, Section 7 308 (An. Code 1974 ET, Section 11 109; 1957, Art. 93, Section 11 109; Acts 1965, Ch. 907; 1966, Ch. 25; 1974, Ch. 11; 1988, Ch. 2; 1989, Ch. 5) xxviii. Uniform Act for the Extradition of Persons of Unsound Mind. Art. 41, Sections 2 301 to 2 306 (An. Code 1957, Art. 42, Sections 23 28; Acts 1918, Ch. 150; 1982, Ch. 770; 1986, Ch. 5) xxix. Maryland Uniform Facsimile Signature of Public Officials Act. SF, Sections 2 301 to 2 306 (An. Code 1957, Art. 31, Sections 13 18; Acts 1960, Ch. 112; 1985, Ch. 11) xxx. Maryland Revised Uniform Federal Lien Registration Act. RP, Sections 3 401 to 3 405 (An. Code 1957, Art. 21, Sections 3 401 to 3 405; Acts 1967, Ch. 752; 1974, Ch. 12; 1980, Ch. 581; 1982, Ch. 820; 1988, Ch. 10) xxxi. Maryland Uniform Fiduciaries Act. ET, Sections 15 201 to 15 211 (An. Code 1957, Art. 37A, Sections 1 13; Acts 1929, Ch. 572; 1974, Ch. 11) xxxii. Uniform Flag Act. Art. 27, Sections 81 to 87 (Acts 1918, Ch. 281; 1988, Ch. 6) xxxiii. Foreign Acknowledgments Act (see Maryland Uniform Acknowledgements Act) 8

(Acts 1916, Ch. 1974; superseded Acts 1953, Ch. 404) xxxiv. Maryland Uniform Foreign Depositions Act (replaced by Maryland Uniform Interstate Depositions and Discovery Act). (An. Code 1957, Art. 35, Sections 31 34; Acts 1933, Ch. 480; 1973, 1st Sp. Sess., Ch. 2; 1974, Ch. 691) xxxv. Foreign Executed Wills Act. ET, Section 4 104 (An. Code 1957, Art. 93, Section 4 104; Acts 1914, Ch. 238; 1974, Ch. 11) xxxvi. Maryland Uniform Foreign Money Judgments Recognition Act. CJ, Sections 10 701 to 10 709 (An. Code 1957, Art. 35, Sections 53A 53I; Acts 1963, Ch. 201; 1973, 1st Sp. Sess., Ch. 2; 1974, Ch. 691; 1989, Ch. 5) xxxvii. Maryland Uniform Fraudulent Conveyance Act. CL, Sections 15 201 to 15 214 (An. Code 1957, Art. 39B, Sections 1 14; Acts 1920, Ch. 395; 1975, Ch. 49; 1984, Ch. 369; 1987, Ch. 623) xxxviii. Maryland General and Limited Power of Attorney Act. ET, Sections 17 101 to 17 204 (Acts 2010, cc. 689, 690) xxxix. Maryland Uniform Gifts to Minors Act (replaced by Maryland Uniform Transfers to Minors Act). (An. Code 1974, ET, Sections 13 301 to 13 310; 1957, Art. 93A, Sections 301 310; 1957, Ch. 137; 1974, Ch. 11; 1975, Chs. 374, 403; 1980, Ch. 299; 1981, Ch. 320; 1983, Ch. 8; 1986, Ch. 5; 1988, Ch. 6; repealed 1989, Ch. 638) xl. Uniform Insurers Liquidation Act (in substance). Art 48A, Sections 132, 145 to 148, 150 to 152 (An. Code 1951; Acts 1941, Ch. 295; 1963, Ch. 553; 1968, Ch. 288; 1983, Ch. 563) 9

xli. Maryland International Wills Act. ET, Sections 4 601 to 4 609 (Acts 2010, c. 63, 1, and Acts 2010, c. 64, 1) xlii. Maryland Uniform Act on Interstate Arbitration of Death Taxes. TG, Sections 7 104 to 7 115 (An. Code 1957; Art. 81, Sections 177 189; Acts 1945, Ch. 982; 1957, Ch. 14; 1975, Ch. 142; 1982, Ch. 615; 1988, Chs. 2, 110) xliii. Maryland Uniform Act on Interstate Compromise of Death Taxes. TG, Sections 7 118 to 7 122 (An. Code 1957; Art. 81, Sections 190 193; Acts 1945, Ch. 983; 1988, Chs. 2, 110) xliv. Maryland Uniform Interstate Depositions and Discovery Act. CJ, Sections 9 401 to 9 407 (Acts 2008, c. 41, 2) xlv. Maryland Uniform Judicial Notice of Foreign Law Act. CJ, Sections 10 501 to 10 507 (An. Code 1957, Art. 35, Sections 47 53; Acts 1939, Ch. 131; 1973, 1st Sp. Sess., Ch. 2; 1974, Ch. 691) xlvi. Maryland Revised Uniform Limited Partnership Act. CA, Sections 10 101 to 10 1105 (An. Code 1957, Art. 73, Sections 1 to 30; Acts 1918, Ch. 280; 1975, Ch. 311; 1976, Ch. 567; 1981, Ch. 801; 1982, Chs. 17, 873; 1983, Chs. 507, 508; 1985, Ch. 480; 1986, Ch. 9; 1987, Chs. 11, 60; 1988, Chs. 183, 550; 1989, Ch. 568) xlvii. Uniform Machine Gun Act. Art. 27, Sections 372 to 383 (An. Code 1951; Acts 1933, Ch. 550; 1966, Ch. 628; 1968, Chs. 149, 313; 1977, Ch. 290; 1978, Chs. 725, 849; 1979, Ch. 333; 1987, Ch. 743; 1988, Ch. 196) 10

xlviii. Maryland Uniform Management of Institutional Funds Act (repealed by Maryland Uniform Prudent Management of Institutional Funds Act). (An. Code 1957, Art. 49A, Sections 6 15; Acts 1974, Ch. 11; 1982, Ch. 820) xlix. Uniform Management of Public Employee Retirement Systems Act. SPP, Section 40 101 (Acts 2005, c. 146, 1) l. Narcotic Drug Act (replaced by Maryland Controlled Dangerous Substances Act). (Art. 27, Sections 276 302; Acts 1935, Ch. 59; 1941, Ch. 725; 1954, Ch. 25; superseded 1970, Ch. 403) li. Negotiable Instruments Act (replaced by Uniform Commercial Code) (Acts 1898, Ch. 119; Art. 13, Sections 3 8, 15 211, repealed 1963, Ch. 538) lii. Maryland Revised Uniform Partnership Act. CA, Sections 9A 101 to 9A 1205 (An. Code 1957, Art. 73A, Sections 1 to 43; Acts 1916, Ch. 175; 1975, Ch. 311; 1986, Ch. 5; 1997, Ch. 654; 1998, c. 743, 1) liii. Maryland Uniform Photographic Copies of Business and Public Records as Evidence Act. CJ, Section 10 102 (An. Code 1957, Art. 35, Section 60; Acts 1951, Ch. 77; 1963, Ch. 189; 1973, 1st Sp. Sess., Ch. 2; 1974, Ch. 691) liv. Uniform Post Conviction Procedure Act. Art. 27, Sections 645A, 645E, 645I, 645J (Acts 1958, Ch. 44; 1959, Ch. 429; 1962, Ch. 36; 1965, Ch. 442; 1966, Ch. 12; 1970, Chs. 99, 595; 1972, Ch. 181; 1976, Ch. 472; 1977, Ch. 678; 1982, Ch. 820; 1983, Ch. 234; 1986, Chs. 5, 647; 1987, Ch. 11; 1988, Ch. 726) lv. Uniform Preservation of Private Business Records Act. 11

Art. 15B, Sections 1 to 6 (Acts 1957, Ch. 237) lvi. Maryland Revised Uniform Principal and Income Act. ET, Sections 15 501 to 15 530 (Acts 2000, c. 292 1; repealed An. Code 1957, Art. 75B, Sections 1 15; Acts 1939, Ch. 580; 1965, Ch. 877; 1974, Ch. 11; 1975, Ch. 88; 1989, Ch. 705) lvii. Maryland Uniform Proof of Statutes Act. CJ, Section 10 202 (An. Code 1957, Art. 35, Sections 63 65; Acts 1973, 1st Sp. Sess., Ch. 2; 1974, Ch. 691) lviii. Maryland Uniform Prudent Management of Institutional Funds Act. ET, Sections 15 401 to 15 410 (Acts 2009, c. 134, 1) lix. Maryland Uniform Interstate Family Support Act. FL, Sections 10 301 through 10 348 (An. Code 1957, Art. 89C; Acts 1951, Ch. 301; 1965, Chs. 295, 450; 1968, Chs. 167, 702; 1972, Ch. 181; 1973, Chs. 15, 651; 1976, Ch. 778; 1978, Ch. 885; 1980, Ch. 192; 1984, Ch. 296; 1985, Ch. 478; 1987, Ch. 335; Acts of 1996, Ch. 667) lx. Reciprocal Transfer Tax Act. TG, Sections 7 203(b), (c), (e) (j)(3)(i), 7 303, 7 402 (An. Code 1957, Art. 81, Section 174; 1951, Section 172; 1939, Section 137; Acts 1929, Ch. 226; 1988, Chs. 2, 110) lxi. Sales Act (replaced by Uniform Commercial Code). (An. Code 1957, Art. 83, Sections 19 96; Acts 1910, Ch. 346; repealed Acts 1963, Ch. 538) lxii. Maryland Securities Act. CA, Sections 11 101 to 11 805 12

(An. Code 1957, Art. 32A, Sections 13 44; Acts 1975, Ch. 311; 1976, Chs. 481, 567, 615; 1977, Chs. 341, 529, 784; 1980, Ch. 598; 1981, Ch. 775; 1983, Ch. 563; 1984, Chs. 198, 255, 285; 1985, Ch. 10; 1986, Ch. 724; 1987, Ch. 11; 1988, Chs. 6, 110; 1989, Chs. 236, 533, 806) lxiii. Maryland Uniform Act for the Simplification of Fiduciary Security Transfer. ET, Sections 15 301 to 15 311 (An. Code 1957, Art. 37A, Sections 15 25; Acts 1974, Ch. 11; 1976, Ch. 273; 1988, Ch. 643) lxiv. Maryland Uniform Simultaneous Death Act. CJ, Sections 10 801 to 10 807 (An. Code 1957, Art. 35, Sections 83 90; Acts 1973, 1st Sp. Sess., Ch. 2; 1974, Ch. 691) lxv. Stock Transfer Act (replaced by Uniform Commercial Code). (An. Code 1957, Art. 23, Sections 100 122; repealed Acts 1963, Ch. 538) lxvi. Maryland Uniform Trade Secrets Act. CL, Sections 11 1201 to 11 1209 (1989, Ch. 598) lxvii. Maryland Uniform Transfers to Minors Act. ET, Sections 13 301 to 13 324 (1989, Ch. 638) lxviii. Trust Receipts Act (replaced by Uniform Commercial Code). (An. Code 1957, Art. 95 1/2, Sections 1 20; Acts 1941, Ch. 268; repealed Acts 1963, Ch. 538) lxix. Veterans Guardianship Act. ET, Section 13 801 to 13 806 (An. Code 1957, Art. 93A, Sections 801 806; Acts 1929, Ch. 74; 1943, Ch. 523; 1974, Ch. 11; 1984, Ch. 255; 1987, Ch. 11) lxx. Voting by New Residents in Presidential Elections, Act For: 13

(Art 33, Sections 28 3 to 28 8; Acts 1965, Ch. 317; repealed 1972, Ch. 255) lxxi. Warehouse Receipts Act (replaced by Uniform Commercial Code). CL, Sections 18 301 to 18 401 (An. Code 1957, Art. 14A, Sections 1 60; Sections 1 to 49 and 56 to 60 repealed Acts 1963, Ch. 538; Art. 14A repealed, in its entirety, 1975, Ch. 49) Model Acts 1. Cy Pres Acts: Maryland Uniform Charitable Trusts Administration Act. ET, Section 14 302 (An. Code 1957, Art. 16, Section 196; Acts 1974, Ch. 11) 2. Escheat of Postal Savings Accounts Act. (An. Code 1957, Art. 95C, Sections 27 33; Acts 1971, Ch. 134; repealed 1984, Ch. 284) 3. Uniform Interparty Agreement Act. Art. 50, Sections 10 to 15 (An. Code 1951; Acts 1931, Ch. 484; 1970, Ch. 492; 1971, Ch. 371; 1972, Ch. 349) 4. Public Defender Act. Art. 27A, Sections 1 to 14 (Acts 1971, Ch. 209; 1972, Ch. 525; 1973, Ch. 355; 1973, 1st Sp. Sess., Ch. 2; 1974, Chs. 683, 865; 1976, Chs. 188, 472, 654, 678; 1977, Chs. 48, 678; 1982, Chs. 789, 820, 911; 1983, Ch. 238; 1984, Chs. 255, 285; 1987, Ch. 11) 5. State Administrative Procedure Act. SG, Sections 10 101(a) and (e), 10 102(b), 10 105, 10 120(a)(1), (5), (6), (7) and (9) and (b), 10 122 to 10 128, 10 201, 10 202, 10 204 to 10 402, 10 404, 10 405 (An. Code 1957, Art. 41, Sections 244 256; Acts 1957, Ch. 94; 1957, Ch. 428; 1963, Ch. 305; 1964, Ch. 188; 1969, Ch. 797; 1972, Chs. 525, 569; 14

1973, Chs. 10, 777; 1974, Chs. 211, 600, 609; 1976, Chs. 472, 648; 1977, Chs. 311, 528, 765; 1978, Chs. 149, 515, 858, 884; 1979, Chs. 28, 499; 1980, Ch. 241; 1984, Ch. 284; 1985, Ch. 783; 1986, Chs. 256, 567; 1987, Chs. 311, 641; 1988, Ch. 110; 1989, Chs. 5, 239) 6. Model Act Providing Remedies For the Unauthorized Practice of Law (in substance). BOP Sections 10 401 to 10 407 (An Code. 1957, Art. 10, Sections 26A 26F; Acts 1961, Ch. 217; 1975, Ch. 390; 1982, Ch. 820; 1988, Ch. 6; repealed 1989, Ch. 3) 7. Maryland Real Estate Time Sharing Act. RP, Sections 11A 101 to 11A 129 (Acts 1984, Ch. 579; 1985, Chs. 10, 720, 721; 1986, Ch. 5; 1987, Chs. 378, 379, 569, 570; 1988, Ch. 563; 1989, Ch. 665) VI. Maryland legislative actions in 2012: 1. Uniform Commercial Code Secured Transactions (Amendments to 1998 Act); CL, Sections 9 102, 9 102, 9 105, 9 307, 9 311, 9 316, 9 317, 9 326, 9 406, 9 408, 9 502, 9 503, 9 507, 9 515, 9 516, 9 518, 9 521, 9 607, 9 801 through 9 810 (Acts 2012, c. 674) UCC Article 9 provides the rules governing any transaction (other than a finance lease) that couples a debt with a creditor s interest in a debtor s personal property. If the debtor defaults, the creditor may repossess and sell the property (generally called collateral) to satisfy the debt. The creditor s interest is called a security interest. Article 9 also covers certain kinds of sales that look like a grant of a security interest. Article 9 was substantially revised in 1998, and the 1998 revisions are in effect in all states and the District of Columbia. The 2010 amendments to Article 9 modify the existing statute to respond to filing issues and address other matters that have arisen in practice following over a decade of experience with the revised Article 9. Of most importance, the 2010 amendments provide greater guidance as to the name of a debtor to be provided on a financing statement. For business entities and other registered organizations, the amendments clarify that the proper name for perfection purposes is the name filed with the state and provided on the organization s charter or other constitutive documents, to the extent there is a conflict with the name on an entity database. More importantly, the 2010 Amendments provide significantly greater clarity as to the name of an individual debtor to be provided on a financing statement. 15

Since the adoption of the 1998 revision of Article 9, there have been at least a dozen court decisions dealing with the question of what name needs to be provided on a financing statement for an individual debtor. Several states have adopted non uniform amendments to Article 9 to address this issue. The 2010 Amendments to Article 9 give greater guidance by providing states with two alternatives. 1) Alternative A, known as the only if rule, requires a filer to provide on the financing statement the name on the debtor's driver's license, if the license has not on its face expired. If the debtor does not have a driver's license, the filer must use either the individual name of the debtor (i.e., whatever the debtor's name is under current law) or the debtor's surname and first personal name. A state considering adopting Alternative A should in particular consider whether the state s driver s license database is compatible with its Uniform Commercial Code database as to characters, field length and the like. 2) Alternative B, known as the safe harbor rule, leaves intact the requirement that the financing statement use the debtor's individual name, but provides that the name on the driver's license will also be sufficient as well as the debtor's surname and first personal name. If a state issues from the same office a non driver s identification card, and it is not possible for the same individual to hold both a driver s license and a non driver s identification card, the name provided on the non driver s identification card may be used with the same effect as a driver s license name under either alternative. Maryland selected Alternative A, the only if rule. A number of related changes were also made for example the 2010 amendments make it clear that a change in the name used on a debtor s driver s license or the expiration of the driver s license may qualify as a name change for purposes of 9 507. With respect to trusts, if collateral is held by a statutory trust or in a Massachusetts type business trust, the trust is a registered organization and the trust s name is the debtor name. For common law trusts that are not Massachusetts type business trusts, the financing statement must provide the name of the trust as identified in the trust s organic records if its name is indicated there, or otherwise the name of the settlor or testator and sufficient additional information to distinguish a particular trust from others held by that same settlor or testator. The Amendments also deal with perfection issues arising on afteracquired property when a debtor (individual or organization) moves to a new jurisdiction. Article 9 currently provides that perfection by filing continues for four months after the jurisdiction in which the debtor is located changes. However, this temporary period of perfection applies only with respect to collateral owned by the debtor at the time of the change. Even if the security interest attaches to after acquired collateral, there is currently no perfection with respect to such new collateral unless and until the secured party perfects pursuant to the law of the new jurisdiction. The amendments change this by 16

giving the filer perfection for four months in collateral acquired post move. A similar change is made with respect to a new debtor that is a successor by merger. The new rule provides for temporary perfection in collateral owned by the successor before the merger or collateral acquired by the successor within four months after the merger. Existing Section 9 518 authorizes the debtor to file a correction statement: a claim that a financing statement filed against it was in fact unauthorized. While this filing has no legal effect on the underlying claim, it does put in the public record the debtor's claim that the financing statement was wrongfully filed. The amendments change section 9 518 in two ways. First, the filing is no longer called a correction statement, but is instead referred to as an information statement. Second, the amendments authorize the secured party of record to also file an information statement if the secured party believes that an amendment to its financing statement was not authorized. The change addresses concerns of secured parties that an amendment to a different financing statement may be inadvertently filed on the secured party s financing statement because the amendment contains an error when referring to the file number of the financing statement to be amended. The comments also make clear that the secured party has no duty to file an information statement, even if it knows of the unauthorized filing. A number of additional technical amendments are also included in this package. For example, some extraneous information currently provided on financing statements will no longer be required. A safe harbor for the transfer of chattel paper in conformance with the Uniform Electronic Transactions Act is included in the amendments, and the amendments make clear that the broader override contractual restrictions found in Section 9 406(d) apply with respect to enforcement of a security interest through the sale or strict foreclosure of payment intangibles and promissory notes. Clarification is given with respect to certificates of title for title goods where the certificates of title are, in whole or in part, in electronic form, and greater guidance is given with respect to the notice requirements applicable to electronic dispositions of collateral (specifically, time and electronic location of online auctions) when a security interest is enforced by sale or other disposition of the collateral. The amendments are accompanied by changes to the official comments to Article 9 to explain the amendments and also provide some additional clarifications in the official comments. The amendments are slated to have a uniform effective date of July 1, 2013, so as to allow states to adopt the amendments uniformly and have them become operative simultaneously (thereby avoiding unnecessary conflicts and confusion with respect to interstate transactions). All states are urged to adopt the 2010 Amendments to Article 9 of the Uniform Commercial Code as quickly as possible. 2. Uniform Commercial Code, Revisions to Article 1; CL, Sections 1 101 through 1 208, 1 101 through 1 108, 1 201 through 1 206, 1 301 through 1 310, 2 103, 2 202, 2 208, 2A 103, 2A 207, 2A 501, 2A 518, 2A 519, 17

2A 527, 2A 528, 3 103, 4 104, 4A 105, 4A 106, 4A 204, 5 103, 8 102, 9 102 (Acts 2012, c. 673) UCC Article 1 provides definitions and general provisions that, in the absence of conflicting provisions, apply as default rules covering transactions and matters otherwise covered under a different article of the UCC. As other parts of the UCC have been revised and amended to accommodate changing business practices and developments in the law, these modifications need to be reflected in an updated Article 1. Thus, Article 1 contains many changes of a technical, non substantive nature, such as reordering and renumbering sections, and adding gender neutral terminology. In addition, over the years it has been in place, certain provisions of Article 1 have been identified as confusing or imprecise. Several changes reflect an effort to add greater clarity in light of this experience. Finally, developments in the law have led to the conclusion that certain changes of a substantive nature needed to be made. The first substantive change is intended to clarify the scope of Article 1. Section 1 102 now expressly states that the substantive rules of Article 1 apply only to transactions within the scope of other articles of the UCC. Second, the statute of frauds requirement that sometimes has been interpreted to govern transactions outside the UCC has been deleted. Statute of frauds issues have been resolved article by article in the UCC, and a statute of frauds provision in Article 1 has become redundant and not applicable in the UCC. Third, amended Section 1 103 clarifies the application of supplemental principles of law by establishing UCC rules as primary when there is a conflict. Fourth, the definition of good faith found in 1 201 is revised to mean honesty in fact and the observance of reasonable commercial standards of fair dealing. This change conforms to the definition of good faith that applies in all of the recently revised UCC articles except Revised Article 5. Fifth, evidence of course of performance may be used to interpret a contract along with course of dealing and usage of trade. Perhaps the most important change to Article 1, finally, has to do with default choice of law provisions found in 1 301, which replaces previous 1 105. Under Article 1 before the 2001 amendments, parties to a transaction may agree to be governed by the law of any jurisdiction that bears a reasonable relation to that transaction. Revised Article 1 provides a different basic rule that applies except for consumer transactions in certain circumstances. With respect to all transactions, an agreement by the parties to use the law of any state (or in the case of an international transaction, country) is effective, regardless of whether the transaction bears a reasonable relation to that state. However, if one of the parties to a transaction is a consumer, such a choice of law provision in a contract may not deprive the consumer of legal protections afforded by the law of the state or country in which the consumer resides, or of the state or country where the consumer contracts and takes delivery of goods. Also, with respect to all transactions, an agreement to use the law of a designated state or country is ineffective to the extent that application would violate a fundamental public policy of the state or country which has jurisdiction to adjudicate a 18

dispute arising out of the transaction. The forum state s law will govern the transaction if the contract is silent on the issue of choice of law. The 2001 Revision of Uniform Commercial Code Article 1 rounds out a complete refurbishment of the Uniform Commercial Code that began in 1985. New articles have been added. All the major articles have been either revised or amended. Article 6 on Bulk Transfers may be repealed, by recommendation, shortening the UCC by one article. The Article 1 Revision merely responds to all of the work and effort on the UCC since 1985. 3. Maryland Uniform Principal and Income Act Amendments; ET, Sections 15 516, 15 527 (Acts 2012, c. 301) In 2008, the Uniform Law Commission finalized amendments to two sections of the Uniform Principal and Income Act (UPAIA). The amendments were drafted to clarify two discrete portions of the UPAIA, sections 409 and 505, and to provide a new transitional section 606 to facilitate the technical implementation of the amendments. The section 409 amendments should serve to resolve issues brought about by IRS Revenue Ruling 2006 26 and assist separate funds within a trust in qualifying for the IRS estate tax marital deduction safe harbors. The section 505 amendments should allow mandatory income trusts that own an entity to retain the proper amount of funds from distributions to meet their existing tax obligations. The amendments to the UPAIA have been adopted in 16 states to date, during the 2009 legislative sessions. UPAIA Section 409: As an estate planning matter, sometimes a person designates a trust for the benefit of his or her spouse as beneficiary of his or her IRA or similar retirement plan ( a plan ) rather than designating the spouse as beneficiary. This is most common when that person has children by a prior marriage or has a spouse who is incapacitated or for whom creditor protection or asset management is desired. Qualifying this trust for the federal estate tax marital deduction prevents estate tax from being incurred until the surviving spouse dies. In 2006, the Internal Revenue Service (IRS) issued Revenue Ruling 2006 26, clarifying its opinion on when such a Plan payable to a trust qualifies for the marital deduction. This IRS ruling directly criticizes the UPAIA s original formula for allocating IRA distributions between principal and trust income. Revised section 409 is designed solely to put the UPAIA s provisions in line with the IRS safe harbor requirements for qualifying trust income from a separate fund for the marital deduction. It should also be noted that the IRS Revenue Ruling states that the spouse must have the right to require that the plan s income be distributed to the trust, and that this income and income from other assets in the trust be distributed in turn to the spouse. The amendment expressly grants that right. As a practical example of how the revised section works for income tax purposes, if a distribution is made from a Plan to a trust, the trustee is required to appropriately allocate that distribution between trust principal and trust income. The distribution is allocated to trust income to the extent that it represents the internal income of the Plan 19

itself, and the rest is allocated to principal within the trust. The portion allocated to trust income is paid and taxed to the surviving spouse. The trust is subject to income tax on amounts retained as principal, but is not taxed on amounts paid to the spouse. UPAIA Section 505: It is not uncommon for trusts that are required to pay income to a beneficiary to own an interest in an LLC or other pass through entity (an entity ). The trust must report its share of the entity s income, whether or not the trust actually receives its entire share of entity income. Many such entities distribute to their owners only enough income to enable the owners to pay their tax obligations. They commonly reinvest the rest of the income in business operations. This strategy works well when the owners are individuals, but it can cause problems when the owners are mandatory income trusts. As a practical example, suppose a trust has a 40% combined federal and state income tax rate and it is to be taxed on $100x of the entity s income. The entity distributes $40x to the trust to fund the tax obligation. If the trust is required to distribute the full $40x that it receives from the entity to the beneficiary, the trust will still be taxed on $60x of income ($100x minus the $40x that was distributable to the beneficiary), but will have no money from the distribution remaining to cover its share of the taxes. The beneficiary, as opposed to the trust, would still be liable for the taxes on the $40x distribution as normal. The amendments to UPAIA section 505 provide a formula for calculating how much the trust needs to distribute and how much it can use to pay its resulting tax obligation. The proposed change clarifies that the trust will keep the money it needs to pay its taxes and distribute the balance of the income to the mandatory income beneficiary. VII. Acts Adopted by the Conference: 1) At the 2012 Annual Meeting a. Uniform Deployed Parents Custody and Visitation Act b. Uniform Premarital and Marital Agreements Act c. Uniform Asset Freezing Orders Act d. Uniform Manufactured Housing Act e. Uniform Choice of Court Agreements Convention Implementation Act VIII. Recommendations for Enactment The Maryland Commissioners recommend that at least the following Uniform and Model Acts be considered for adoption in Maryland during the 2013 General Assembly: 1) Maryland Trust Act (The bill was introduced in the 2013 General Assembly as HB 437 and SB 753. It is substantially similar but not identical to the Uniform Laws Commission version.) 20

2) Real Property Transfer on Death Act (uniform), introduced in the 2013 General Assembly as HB 946. It was not cross filed in Senate. CONCLUSION Copies of Uniform Acts, Model Acts, legislative fact sheets and other related documents desired by the Governor or members of the General Assembly can readily be obtained by visiting the Uniform Law Commission website at www.uniformlaws.org. Your Maryland Commissioners stand ready to provide other information to the members of the General Assembly on request, including such background information as they may have available that could be helpful to the work of the General Assembly. Respectfully submitted, M. Michael Cramer, Chairman M. King Hill, Jr. K. King Burnett Albert D. Brault Steven N. Leitess Maryland Commissioners on Uniform State Laws 21