GOVERNOR'S VETO

Pursuant to Section 6 of Article V of the Constitution of Virginia, I veto House Bill No. 7.

House Bill No. 7 eliminates the requirement of a warehouse receipt in order for a warehouse lien to be created. I understand that more transactions increasingly are being conducted electronically and old laws often must be adapted to new ways of doing business. In many cases, however, existing laws can fairly be interpreted to encompass electronic commerce. We should seek to harmonize existing laws with the new economy before disrupting long-standing legal doctrines.

A fair construction of "warehouse receipt" in Virginia Code § 8.7-209 could recognize the validity of an electronic receipt. I am not convinced we should hastily delete the requirement for a "warehouse receipt" altogether from the Code simply to recognize an electronic form. Elimination of the requirement altogether could disrupt the long-standing legal doctrine of fair notice and, unintentionally, give rise to hidden liens on goods in transport.

I am not convinced current Code language needs to be changed or, if it does, that House Bill No. 7 does so in a prudent manner.

Therefore, I am returning this bill without my approval.