Sepulveda, Wright, Mosley, Barron, Pichardo, Blake, Bichotte, Rivera, Ra
MLTSPNSR
DenDekker
Amd §302, add §310, St Tech L
Relates to allowing signatures, records and contracts secured through blockchain technology to be considered in an electronic form and to be an electronic record and signature; allows smart contracts to exist in commerce.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8780
SPONSOR: Vanel TITLE OF BILL: An act to amend the state technology law, in relation
to blockchain technology and smart contracts
PURPOSE OR GENERAL IDEA OF BILL:
Relates to allowing signatures secured through blockchain technology to
be considered an electronic signature
SUMMARY OF PROVISIONS:
Section 1 Amends section 302 of the State Technology Law
Section 2 says the state technology law will be amended by adding a new
section 310
Section 3 states that the act shall take effect immediately.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
N/A
JUSTIFICATION:
We are in a dynamic transitional time for technology in the world and in
New York State, in particular. Of utmost importance is New York's trans-
mission of information over the Internet, the electronic storage of
data, electronic record-keeping and cyber security. The state should
explore viability of the use of new technologies.
Blockchain technology is a form of encryption. Other counties and states
around the United States have already developed initiatives to try to
integrate this technology into their economies. "A blockchain is a
continuously growing list of records called blocks, which are linked and
secured using cryptography. By design, blockchains are inherently
resistant to modification of the data." (Wikipedia)
Because of their incorruptible design, blockchain signatures operate as
a perfect receipt. They cannot be altered or edited once the block is
added on to the chain. They are encrypted with their own unique signa-
ture and timestamp. A signature secured through the blockchain will be
more secure than any other protected server due to its level of
encryption and decentralization from privatization.
PRIOR LEGISLATIVE HISTORY:
New York State Technology law sections 302, 310
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined
EFFECTIVE DATE:
Effective immediately
STATE OF NEW YORK
________________________________________________________________________
8780
2017-2018 Regular Sessions
IN ASSEMBLY
November 27, 2017
___________
Introduced by M. of A. VANEL -- read once and referred to the Committee
on Governmental Operations
AN ACT to amend the state technology law, in relation to blockchain
technology and smart contracts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 302 of the state technology law is amended by
2 adding two new subdivisions 6 and 7 to read as follows:
3 6. "Blockchain technology" shall mean distributed ledger technology
4 that uses a distributed, decentralized, shared and replicated ledger,
5 which may be public or private, permissioned or permissionless, or driv-
6 en by tokenized crypto economics or tokenless. The data on the ledger is
7 protected with cryptography, is immutable and auditable and provides an
8 uncensored truth.
9 7. "Smart contract" shall mean an event-driven program that runs on a
10 distributed, decentralized, shared and replicated ledger and that can
11 take custody over and instruct transfer of assets on that ledger.
12 § 2. The state technology law is amended by adding a new section 310
13 to read as follows:
14 § 310. Signatures and records secured through blockchain technology
15 and smart contracts. 1. A signature that is secured through blockchain
16 technology is considered to be in an electronic form and to be an elec-
17 tronic signature.
18 2. A record or contract that is secured through blockchain technology
19 is considered to be in an electronic form and to be an electronic
20 record.
21 3. Smart contracts may exist in commerce. A contract relating to a
22 transaction may not be denied legal effect, validity or enforceability
23 solely because that contract contains a smart contract term.
24 4. Notwithstanding any other law, rule or regulation to the contrary,
25 a person that, in or affecting interstate or foreign commerce, uses
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13679-01-7
A. 8780 2
1 blockchain technology to secure information that the person owns or has
2 the right to use retains the same rights of ownership or use with
3 respect to that information as before the person secured the information
4 using blockchain technology. This subdivision does not apply to the use
5 of blockchain technology to secure information in connection with a
6 transaction to the extent that the terms of the transaction expressly
7 provide for the transfer of rights of ownership or use with respect to
8 that information.
9 § 3. This act shall take effect immediately.
