NY State Senate Bill 2017-S8858

Senate Bill S8858

2017-2018 Legislative Session

Relates to allowing signatures secured through blockchain technology to be considered an electronic signature

download bill text pdf

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 29, 2018	referred to energy and telecommunications

2017-S8858 (ACTIVE) - Details

See Assembly Version of this Bill:: A8780
Current Committee:: Senate Energy And Telecommunications
Law Section:: State Technology Law
Laws Affected:: Amd §302, add §310, St Tech L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S4142, A1683
2021-2022: S1801, A3760
2023-2024: A2643

2017-S8858 (ACTIVE) - Summary

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.

2017-S8858 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8858

SPONSOR: GOLDEN
 
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:

Same As A. 8780 - Governmental Operations.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
Effective immediately.

2017-S8858 (ACTIVE) - Bill Text download pdf

                            
 
                     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.

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