S T A T E O F N E W Y O R K
________________________________________________________________________
8858
I N S E N A T E
May 29, 2018
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations
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
BLOCKCHAIN TECHNOLOGY TO SECURE INFORMATION THAT THE PERSON OWNS OR HAS
THE RIGHT TO USE RETAINS THE SAME RIGHTS OF OWNERSHIP OR USE WITH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13679-01-7
S. 8858 2
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.