California may soon form a working group to examine the potential benefits of blockchain in the state and the best way to update laws to make use of technology.
California bill 2658, first introduced in February 2018, originally recognized "A record that is protected through blockchain technology is an electronic record", as previously reported. However, the final version of Monday now directs the Secretary of the Government Operations Agency to create a blockchain working group to study technology instead.
Also adds that "for the purposes of this chapter," blockchain "mathematically means secure, chronological and decentralized register or database," although this definition is temporary and will expire by January 2022.
The working group, whose president will be designated no later than July 1, 2019, will include members in industry technology as well as representatives from related industries. Stakeholders will be able to provide input to the group, which will then be responsible for recommending changes to the state legislator.
According to the bill, the group will examine specifically how the blockchain can be used by the government and local businesses, what risks could derive from the use of blockchain, how the blockchain can benefit businesses and the government, as the use of blockchain can be adapted to California law and "best practices to enable blockchain technology for the benefit of California, California and California-based businesses."
The group has until July 1, 2020 to draft its report, which "will include recommendations for changes to the definition of blockchain … and recommendations for changes to other sections of code that could be affected by blockchain deployment. "
Public records show that both the State Senate and the General Assembly have passed the bill after the readings on the third Monday, in the sense that it should now go to Governor Jerry Brown, who has 30 days to allow the design of law to become law or to prohibit it.
Public records show that both the senate state and the general assembly have approved the bill with an overwhelming majority, probably protecting it from any potential veto.
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