SB 1024 — Blockchain Technology

Florida Senate - 2019 CS for SB 1024 By Senatorthe GrutersCommittee 23-01936-19on 20191024__Innovation, AIndustry, billand toTechnology; be entitled An act relating to blockchain technology;

and Senator Gruters 580-03763-19 20191024c1 A bill to be entitled An act relating to blockchain technology;

establishing the Florida Blockchain WorkingTask GroupForce inwithin the AgencyDepartment forof StateFinancial Technology;Services;

providingrequiring forthe membershiptask andforce dutiesto ofdevelop thea workingspecified group;master plan;

requiringspecifying the workingcomposition groupof to submit a report to the Governortask andforce; the Legislature and make presentations;

requiringspecifying theduties agency to provide support staff and otherprocedures assistanceof to the workingtask group;force;

providing forthat terminationtask offorce themembers workingshall group;serve without compensation but are entitled to certain reimbursement;

requiring the task force to submit a specified report to the Governor and the Legislature and to make presentations;

providing that the task force is entitled to assistance and services of state governmental entities;

requiring the department to provide support staff and other assistance to the task force;

providing for termination of the task force;

1320 WHEREAS, blockchain has the ability to improve processes, increase efficiency, and promote transparency in government, in businesses, and for consumers, and it is imperative that blockchain benefits and applications are studied so that its potential can be fully realized, and WHEREAS, investments in blockchain companies and projects have skyrocketed from millions of dollars in 2015 to billions of dollars in 2018, with venture capital funds and other private investors investing $1.3 billion between January and May of 2018 in blockchain and blockchain-adjacent early stage companies, and WHEREAS, increasing legislative activity has occurred at the state and federal levels examining and supporting the benefits of blockchain technology, and a working group is an important first step in coordinating information and technology among industry and legislators to develop real proposals that can be acted upon, and WHEREAS, a cornerstone of any blockchain initiative is the exploration and understanding of blockchain and distributed ledger technology, as these technologies are often complex and must be properly understood and tested before implementation, and a working group can determine applications of blockchain that could cut costs for taxpayers and provide a gateway for entrepreneurs to best understand the laws of their state and surrounding blockchain and virtual currencies, and WHEREAS, establishing a working group is the first step in unlocking the transformative possibilities of blockchain and its tremendous positive impact for economic advancement, NOW, THEREFORE, 42 Be It Enacted by the Legislature of the State of Florida:

4422 Section 1. (1) The Legislature finds that:

(d) Nations, other states, and municipalities across the world are studying and implementing governmentgovernmental reforms that bolster trust and reduce bureaucracy through verifiable open source blockchain technology in a variety of areas, including, but not limited to, medical and health records, land records, banking, tax and fee payments, smart contracts, professional accrediting, and property auctions.

(e) It is in the public interest to establish a Florida Blockchain WorkingTask GroupForce comprised of government and industry representatives to study the ways in which state, county, and municipal governments can benefit from a transition to a blockchain-based system for recordkeeping, security, and service delivery and to develop and submit recommendations to the Governor and the Legislature concerning the potential for implementation of blockchain-based systems that promote government efficiencies, better services for citizens, economic development, and safer cyber-secure interaction between government and the public.

(2) There(2) The is established in the Agency for State Technology the Florida Blockchain WorkingTask GroupForce, to explore and develop a mastertask planforce foras fosteringdefined the expansion of the blockchain industry in thes. state, to recommend policies and state investments to help make this state a leader in blockchain technology, and to issue a report to the Legislature.

The20.03, workingFlorida groupStatutes, shallis studyestablished ifwithin andthe howDepartment state,of county,Financial andServices municipalto governmentsexplore canand benefitdevelop from a transitionmaster toplan afor blockchain-basedfostering systemthe forexpansion recordkeeping,of datathe security,blockchain financialindustry transactions,in andthe servicestate, deliveryto recommend policies and state investments to identifyhelp waysmake this state a leader in blockchain technology, and to improveissue governmenta interactionreport withto businessesthe Governor and the public.Legislature.

The workingtask groupforce shall complystudy if and how state, county, and municipal governments can benefit from a transition to a blockchain-based system for recordkeeping, data security, financial transactions, and service delivery and identify ways to improve government interaction with thebusinesses requirementsand ofthe s.public.

20.052, Florida Statutes, except as otherwise provided in this section.

(b) The workingtask groupforce shall consist of 1912 members.

Members must demonstrate an interest in, familiarity with, or knowledge of blockchain technology.

1. Two1. Three membersagency heads or executive directors of cabinet agencies, or their designees, appointed by the Governor.

2. Two2. Four members appointedof by the Presidentprivate ofsector with knowledge and experience in blockchain technology, appointed by the Senate.Governor.

3. Two3. Three members appointedfrom by the Speakerprivate ofsector with knowledge and experience in blockchain technology, appointed by the HouseChief ofFinancial Representatives.Officer.

4. One member from the private sector with knowledge and experience in blockchain technology, appointed by the MinorityPresident Leader of the Senate.

5. One member from the private sector with knowledge and experience in blockchain technology, appointed by the MinoritySpeaker Leader of the House of Representatives.

6. One99 memberMembers appointedof bythe task force shall reflect the Chiefethnic Financialdiversity Officer.of the state.

7. One(c) Within member90 days after the effective date of this act, a majority of the members of the task force must be appointed byand the Attorneytask General.force shall hold its first meeting.

8. TheThe Secretarytask offorce theshall Departmentelect one of Managementits Servicesmembers orto hisserve oras herchair. designee.

9. TheMembers executive director of the Agencytask force shall serve for Statethe Technologyduration orof histhe orexistence herof designee.the task force.

10. One member of the Florida Technology Council, appointed by the Florida Technology Council.

11. One member appointed by the Florida League of Cities.

12. One member appointed by the Florida Association of Counties.

13. One member appointed by the Florida Local Government Information Systems Association.

14. One member appointed by the Florida City and County Management Association.

15. One member of the Florida Chamber of Commerce, appointed by the Florida Chamber of Commerce.

16. One member appointed by the Chancellor of the State University System.

(c) At least 10 members of the working group must have knowledge and experience in blockchain technology.

(d) Within 90 days after the effective date of this act, a majority of the members of the working group must be appointed and the working group shall hold its first meeting.

The working group shall elect one of its members to serve as chair.