The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8780

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            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:

  Section 1. Section 302 of the  state  technology  law  is  amended  by
adding two new subdivisions 6 and 7 to read as follows:
  6.  "BLOCKCHAIN  TECHNOLOGY"  SHALL MEAN DISTRIBUTED LEDGER TECHNOLOGY
THAT USES A DISTRIBUTED, DECENTRALIZED, SHARED  AND  REPLICATED  LEDGER,
WHICH MAY BE PUBLIC OR PRIVATE, PERMISSIONED OR PERMISSIONLESS, OR DRIV-
EN BY TOKENIZED CRYPTO ECONOMICS OR TOKENLESS. THE DATA ON THE LEDGER IS
PROTECTED  WITH CRYPTOGRAPHY, IS IMMUTABLE AND AUDITABLE AND PROVIDES AN
UNCENSORED TRUTH.
  7. "SMART CONTRACT" SHALL MEAN AN EVENT-DRIVEN PROGRAM THAT RUNS ON  A
DISTRIBUTED,  DECENTRALIZED,  SHARED  AND REPLICATED LEDGER AND THAT CAN
TAKE CUSTODY OVER AND INSTRUCT TRANSFER OF ASSETS ON THAT LEDGER.
  § 2. The state technology law is amended by adding a new  section  310
to read as follows:
  §  310.  SIGNATURES  AND RECORDS SECURED THROUGH BLOCKCHAIN TECHNOLOGY
AND SMART CONTRACTS. 1. A SIGNATURE THAT IS SECURED  THROUGH  BLOCKCHAIN
TECHNOLOGY  IS CONSIDERED TO BE IN AN ELECTRONIC FORM AND TO BE AN ELEC-
TRONIC SIGNATURE.
  2. A RECORD OR CONTRACT THAT IS SECURED THROUGH BLOCKCHAIN  TECHNOLOGY
IS  CONSIDERED  TO  BE  IN  AN  ELECTRONIC  FORM AND TO BE AN ELECTRONIC
RECORD.
  3. SMART CONTRACTS MAY EXIST IN COMMERCE. A  CONTRACT  RELATING  TO  A
TRANSACTION  MAY  NOT BE DENIED LEGAL EFFECT, VALIDITY OR ENFORCEABILITY
SOLELY BECAUSE THAT CONTRACT CONTAINS A SMART CONTRACT TERM.
  4. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE  CONTRARY,
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

BLOCKCHAIN TECHNOLOGY TO SECURE INFORMATION THAT THE PERSON OWNS OR  HAS
THE  RIGHT  TO  USE  RETAINS  THE  SAME  RIGHTS OF OWNERSHIP OR USE WITH
RESPECT TO THAT INFORMATION AS BEFORE THE PERSON SECURED THE INFORMATION
USING  BLOCKCHAIN TECHNOLOGY. THIS SUBDIVISION DOES NOT APPLY TO THE USE
OF BLOCKCHAIN TECHNOLOGY TO SECURE  INFORMATION  IN  CONNECTION  WITH  A
TRANSACTION  TO  THE  EXTENT THAT THE TERMS OF THE TRANSACTION EXPRESSLY
PROVIDE FOR THE TRANSFER OF RIGHTS OF OWNERSHIP OR USE WITH  RESPECT  TO
THAT  INFORMATION.
  § 3. This act shall take effect immediately.