Signed by Governor Jerry Brown, Jr.

Vote Smart's Synopsis:

Vote to pass a bill that establishes regulations for blockchain technology.

Highlights:

• Authorizes the Secretary of Government Operations Agency to appoint a blockchain working group and designate the chairperson of that group on or before July 1, 2019 (Sec. 2).

• Specifies that the working group will evaluate all of the following, including, but not limited to (Sec. 2):

• The use of blockchain in state government and California-based businesses;

• The privacy risk associated with the use of blockchain in these businesses;

• The benefits of and best practices for enabling blockchain technology; and

• The legal implications associated with the use of blockchain technology.

• Specifies that the blockchain working group shall consist of participants from all of the following, including, but not limited to (Sec. 2):

• 3 appointees from the technology industry and 3 from the non technology-industry;

• 3 appointees with a background in law;

• 2 appointees representing privacy organizations and 2 representing consumers; and

• 1 member of both the State Senate and State Assembly.

• Defines “blockchain” as a mathematically secured, chronological and decentralized ledger or database of transactions or other data (Sec. 1).

• Requires that prior to July 1, 2020 the blockchain working group shall report to the state legislature on the potential uses, risks and benefits of blockchain technology by state government and California-based businesses (Sec. 2).

• Specifies that the report made to the state legislature shall include recommendations for modifications to the definition of blockchain and amendments to other code sections (Sec. 2).

• Specifies that the members of the working group shall serve without compensation but will be reimbursed for all necessary expenses incurred in the performance of their duties (Sec. 2).

Full Bill Text