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SB-689 Records: blockchain.(2021-2022)

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Date Published: 03/08/2021 09:00 PM
SB689:v98#DOCUMENT

Amended  IN  Senate  March 08, 2021

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, of the Government Code, and to amend Section 103526.5 of the Health and Safety Code, relating to state government. blockchain technology.


LEGISLATIVE COUNSEL'S DIGEST


SB 689, as amended, Hertzberg. Department of Technology: Records: blockchain.
Existing law requires the State Registrar, local registrar, or county recorder, upon request and payment of the required fee, to supply to an applicant a certified copy of the record of a birth, fetal death, death, marriage, or marriage dissolution registered with the official. Existing law requires the certificate to contain certain information and to be printed on chemically sensitized security paper, as specified.
This bill would authorize a certified copy of a birth, death, or marriage record issued pursuant to those provisions to be issued, in addition to the required method described above, by means of blockchain technology, as defined.
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. provisions.
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 Section 11546.8 of the Government Code is repealed.

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 permanent order of transactions recorded.

SEC. 3.

 Section 103526.5 of the Health and Safety Code is amended to read:

103526.5.
 (a) Each certified copy of a birth, death, or marriage record issued pursuant to Section 103525 shall include the date issued, the name of the issuing officer, the signature of the issuing officer, whether that is the State Registrar, local registrar, county recorder, or county clerk, or an authorized facsimile thereof, and the seal of the issuing office.
(b) All certified copies of birth, death, and marriage records issued pursuant to Section 103525 shall be printed on chemically sensitized security paper that measures 81/2 inches by 11 inches and that has the following features:
(1) Intaglio print.
(2) Latent image.
(3) Fluorescent, consecutive numbering with matching barcode.
(4) Microprint line.
(5) Prismatic printing.
(6) Watermark.
(7) Void pantograph.
(8) Fluorescent security threads.
(9) Fluorescent fibers.
(10) Any other security features deemed necessary by the State Registrar.
(c) (1) The State Registrar may suspend the use of any security feature described in subdivision (b) if necessary to enable the State Registrar, local registrar, county recorder, or county clerk to supply an applicant with a certified copy of a birth, death, or marriage record issued pursuant to Section 103525.
(2) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement this subdivision through all-county letters or similar instructions from the State Registrar without taking regulatory action.
(d) The State Registrar, local registrars, county recorders, and county clerks shall take precautions to ensure that uniform and consistent standards are used statewide to safeguard the security paper described in subdivision (b), including, but not limited to, the following measures:
(1) Security paper shall be maintained under secure conditions so as not to be accessible to the public.
(2) A log shall be kept of all visitors allowed in the area where security paper is stored.
(3) All spoilage shall be accounted for and subsequently destroyed by shredding on the premises.
(e) (1) In addition to the method required by subdivision (b), a certified copy of a birth, death, or marriage record issued pursuant to Section 103525 may be issued by means of blockchain technology.
(2) For purposes of this subdivision, “blockchain technology” has the same meaning as defined in Government Code 11546.8.

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 that person’s designee.

(7)The Director of Finance, or 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 but shall be reimbursed for all necessary expenses actually incurred in the performance of their duties.

(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.