SJM 9 — BLOCKCHAIN TECHNOLOGY TASK FORCE

SENATE JOINT MEMORIAL 9 54THTH LEGISLATURE-LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,SESSION , 2020 INTRODUCED BY Gerald Ortiz y Pino 6This 8document 10incorporates Aamendments JOINTthat MEMORIALhave REQUESTINGbeen THEadopted SECRETARYduring OFthe INFORMATIONcurrent TECHNOLOGYlegislative TOsession. CONVENE A BLOCKCHAIN TECHNOLOGY TASK FORCE TO EXAMINE AND REPORT ON THE POTENTIAL BENEFITS AND RISKS TO THE PUBLIC ASSOCIATED WITH THE USE OF BLOCKCHAIN TECHNOLOGY IN THE PUBLIC AND PRIVATE SECTORS.

16The WHEREAS,document "blockchainis technology" means a digitaltool ledgerto orshow e t 17 database that uses a distributed, shared and replicated ledger, w l n d 18 either public or private, with or without permission, where the =amendments =in 19context a l data on the ledger is protected with cryptography and is inot ato ebe rused 20for immutablethe andpurpose auditable;of amendments.

andA aJOINT tMEMORIAL mREQUESTING mTHE 21SECRETARY WHEREAS,OF advancesINFORMATION inTECHNOLOGY blockchainTO technologyCONVENE haveh allowedA dBLOCKCHAIN rTECHNOLOGY eTASK 22FORCE forTO advancesEXAMINE inAND recordREPORT managementON andTHE transactiong processing,o ct ehr sPOTENTIAL kBENEFITS 23AND thusRISKS allowingTO forTHE thePUBLIC expandedASSOCIATED managementWITH andTHE storageg ofe datai ek aUSE nOF bBLOCKCHAIN 24TECHNOLOGY andIN digitalTHE itemsPUBLIC ofAND value;PRIVATE SECTORS.

andh r i s h , t, e u [g WHEREAS, these"blockchain advancestechnology" inmeans blockchaina technologydigital mayledger haveor .215921.2e b l e e h database that uses a distributed, shared and replicated ledger, n d d i = = o h either public or private, with or without permission, where the potentiall to] changeb business,d operatingi modelsa withinº e data on the state,ledger nationalis andprotected globalwith economiescryptography and beis r i = r t e w d m a catalystn foro economicimmutable development;and auditable;

and d m :

b e d s º o t n = .215921.2AIC February 5, 2020 (10:59am) s k m e e a n e d r e l u [ A d WHEREAS, advances in blockchain technology have allowed for advances in record management and transaction processing, thus allowing for the expanded management and storage of data and digital items of value;

and WHEREAS, these advances in blockchain technology may have the potential to change business operating models within the state, national and global economies and be a catalyst for economic development;

and WHEREAS, these advances in blockchain technology may significantly change financial institutions, speeding up transactions, allowing for more efficient person-to-person and h business-to-business transactions, lowering transaction costs u » r and providing expanded access to financial services;

and t h g e l i WHEREAS, these advances in blockchain technology have led h r i s to innovations such as contracts that can be executed without h , e h any human interaction;

and t u g e b l e 17e , gh WHEREAS, these advances in blockchain technology may e e n d 18d i = = o h fundamentally change the manner of numerous applications in = = l ] 19b ,d i a º r such areas as health care, energy, financial services, ae l r i= 20t e w d m a n o telecommunications, payments, asset management and government td em a: t services;

andb mr me 21t eº do rt en 22= WHEREAS,.215921.2AIC theFebruary advances5, in2020 blockchain(10:59am) technologys havek ledm toe c- 2 - e a n e d r ce 23l itsu increasing[ use;A d services;

and e a n b 24 WHEREAS, the advances in blockchain technology continuehave led to uits [increasing grow,use; and future developments and innovations will undoubtedly .215921.2 - 2 - continue;

and WHEREAS, the advances in blockchain technology continue to grow, and future developments and innovations will undoubtedly continue;

and WHEREAS, the advances in blockchain technology raise questions as to whether or not states or the federal government should take action to promote or regulate the sectors h implicated by blockchain technology;

and u » r WHEREAS, without wide-scale collaboration and coordination t h g e l i on all levels of government, the potential risks related to h r i s these technological advances may not be fully understood and h , e h any benefits may not be realized;

t u g e b l e 17e , gh NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE e e n d 18d i = = o h STATE OF NEW MEXICO that the secretary of information = = l ] 19b ,d i a º r technology be requested to convene a task force to examine the ae l r i= 20 possible social and economic benefits and risks to the t e aw td residents of the state associated with the use of blockchain m ma 21n eo dpossible rsocial eand 22economic technologybenefits in both the public and privaterisks sectors, including c e r c 23 the potential disruption to industries and the impactd onm public: e a n b 24 and private workforces;

andb r e t º o t n = .215921.2AIC February 5, 2020 (10:59am) s k m e - 3 - e a n e d r e l u [ BEA ITd FURTHERresidents RESOLVEDof thatthe state associated with the taskuse forceof includeblockchain technology in both the .215921.2public -and 3private -sectors, followingincluding individualsthe orpotential theirdisruption designees:to industries and the impact on public and private workforces;

and BE IT FURTHER RESOLVED that the task force include the following individuals or their designees:

SRCº I.

the directorsecretary of thetransportation; financial institutions division of the regulation and licensing department;

the directorsecretary of thefinance securitiesand divisionadministration;»SRC ofh theSRCºI»SRC regulationSRCºK»SRC. and licensing department;

the director of the g o t hr financial institutions division of the regulation and K.licensing g e i k department;

membersh appointedr byi thes secretarySRCº ofJ»SRC informationSRCºL»SRC. technology, including a representative:

(1)the fromdirector of the bankingh industry;, t, e u g securities division of the regulation and licensing department;

e eb 17l (2) from a public post-secondary educational e e h and n d 18d institutioni operating in the state with expertise in business = = lo ]h 19SRCº andK»SRC economics;SRCºM»SRC.

amembers appointed by the l ] b ,d i a º e secretary of information technology, including a r i 20= (3)r fromt e w d m a laborn organization;o representative:

td e a t (4) from a business actively engaged in the m m: 21 e d r e 22 development or use of blockchain technology;

andb c e rd cs 23º (5)o witht expertisen in= any.215921.2AIC otherFebruary relevant5, area2020 (10:59am) s k m e - 4 - e a n be 24d asr thee secretaryl ofu information[ technologyA deemsd appropriate;(1) from the banking industry;

u(2) [from anda .215921.2public -post-secondary 4educational -institution BEoperating ITin FURTHERthe RESOLVEDstate thatwith theexpertise taskin forcebusiness investigate:and economics;

(3) from a labor organization;

(4) from a business actively engaged in the development or use of blockchain technology;

and (5) with expertise in any other relevant area as the secretary of information technology deems appropriate;

and BE IT FURTHER RESOLVED that the task force investigate:

the advisability of creating limited exceptions to state securities laws to encourage the responsible development of blockchain-based funding tools for economic h development;

g o t hr C.

the advisability of amending laws to allow the g e i k use of blockchain technology in the transaction of business in h r i s the state, including contracting, business formation and h , t, governance, recordkeeping, reporting, asset transfer and e u g e b l e e h security requirements;

n d d i = = o h D.

the current and potential impact on existing l ] b ,d i a º e businesses and industries related to the use of blockchain r i = r t e w d m a n o technologies;

E.d m :

theb currente andd potentials creationº ofo newt jobsn e= e.215921.2AIC 17February and5, the2020 displacement(10:59am) ofs existingk jobsm relatede to- the5 use- of e ea n e d 18r blockchaine technologiesl inu both[ theA publicd andE. private sectors;