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SB-689 Department of Technology: blockchain.(2021-2022)

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Date Published: 02/19/2021 09:00 PM
SB689:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 689


Introduced by Senator Hertzberg

February 19, 2021


An act to amend Section 11546.9 of, and to repeal and add Section 11546.8 of, the Government Code, relating to state government.


LEGISLATIVE COUNSEL'S DIGEST


SB 689, as introduced, Hertzberg. Department of Technology: blockchain.
Existing law requires the Secretary of the Government Operations Agency to appoint a blockchain working group and requires that group to submit a report containing specified information related to blockchain technology to the Legislature on or before July 1, 2020.
This bill would revise and recast the definition of blockchain for purposes of those provisions and would require the blockchain working group to, on or before July 1, 2024, determine if the report to the Legislature should be augmented to reflect subsequent developments in blockchain technology.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 11546.8 of the Government Code is repealed.
11546.8.

(a)For the purpose of this chapter, “blockchain” means a mathematically secured, chronological, and decentralized ledger or database.

(b)This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.

SEC. 2.

 Section 11546.8 is added to the Government Code, to read:

11546.8.
 For purposes of this chapter, “blockchain” means a decentralized data system, in which the data stored is mathematically verifiable, that uses distributed ledgers or databases to store specialized data in the order of transactions recorded.

SEC. 3.

 Section 11546.9 of the Government Code is amended to read:

11546.9.
 (a) The Secretary of the Government Operations Agency shall appoint a blockchain working group and designate the chairperson of that group on or before July 1, 2019, to evaluate all of the following:
(1) The uses of blockchain in state government and California-based businesses.
(2) The risks, including privacy risks, associated with the use of blockchain by state government and California-based businesses.
(3) The benefits associated with the use of blockchain by state government and California-based businesses.
(4) The legal implications associated with the use of blockchain by state government and California-based businesses.
(5) The best practices for enabling blockchain technology to benefit the State of California, California-based businesses, and California residents.
(b) The working group shall consist of participants from all of the following:
(1) Three appointees from the technology industry.
(2) Three appointees from nontechnology-related industries.
(3) Three appointees with a background in law chosen in consultation with the Judicial Council.
(4) Two appointees representing privacy organizations.
(5) Two appointees representing consumer organizations.
(6) The State Chief Information Officer, or his or her that person’s designee.
(7) The Director of Finance, or his or her that person’s designee.
(8) The chief information officers of three other state agencies, departments, or commissions.
(9) One member of the Senate, appointed by the Senate Committee on Rules, and one member of the Assembly, appointed by the Speaker of the Assembly.
(c) The blockchain working group shall take input from a broad range of stakeholders with a diverse range of interests affected by state policies governing emerging technologies, privacy, business, the courts, the legal community, and state government.
(d) On or before July 1, 2020, the blockchain working group shall report to the Legislature on the potential uses, risks, and benefits of the use of blockchain technology by state government and California-based businesses.
(1) The working group’s report shall include recommendations for modifications to the definition of blockchain in Section 11546.8 and recommendations for amendments to other code sections that may be impacted by the deployment of blockchain.
(2) A report submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(e) The members of the working group shall serve without compensation, compensation but shall be reimbursed for all necessary expenses actually incurred in the performance of their duties.

(f)This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.

(f) The blockchain working group shall, on or before July 1, 2024, determine if the report required by this section should be augmented to reflect subsequent developments in blockchain technology.