Bill Text: IA SF303 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to electronic transactions by permitting the use of distributed ledger technology and smart contracts.(See SSB 1207, SF 541.)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-04 - Committee report approving bill, renumbered as SF 541. S.J. 528. [SF303 Detail]
Download: Iowa-2021-SF303-Introduced.html
Senate
File
303
-
Introduced
SENATE
FILE
303
BY
LOFGREN
A
BILL
FOR
An
Act
relating
to
electronic
transactions
by
permitting
the
1
use
of
distributed
ledger
technology
and
smart
contracts.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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303
Section
1.
Section
554D.103,
subsections
4,
7,
and
8,
Code
1
2021,
are
amended
to
read
as
follows:
2
4.
“Contract”
means
the
total
legal
obligation
resulting
3
from
the
parties’
agreement
as
affected
by
this
chapter
and
4
other
applicable
law.
“Contract”
includes
any
contract
secured
5
through
distributed
ledger
technology
and
a
smart
contract.
6
7.
“Electronic
record”
means
a
record
created,
generated,
7
sent,
communicated,
received,
or
stored
by
electronic
means.
8
“Electronic
record”
includes
any
record
secured
through
9
distributed
ledger
technology.
10
8.
“Electronic
signature”
means
an
electronic
sound,
symbol,
11
or
process
attached
to
or
logically
associated
with
a
record
12
and
executed
or
adopted
by
a
person
with
the
intent
to
sign
the
13
record.
“Electronic
signature”
includes
a
signature
that
is
14
secured
through
distributed
ledger
technology.
15
Sec.
2.
Section
554D.103,
Code
2021,
is
amended
by
adding
16
the
following
new
subsections:
17
NEW
SUBSECTION
.
4A.
“Distributed
ledger
technology”
means
18
an
electronic
record
of
transactions
or
other
data
to
which
all
19
of
the
following
apply:
20
a.
The
electronic
record
is
uniformly
ordered.
21
b.
The
electronic
record
is
redundantly
maintained
or
22
processed
by
one
or
more
computers
or
machines
to
guarantee
the
23
consistency
or
nonrepudiation
of
the
recorded
transactions
or
24
other
data.
25
c.
The
electronic
record
is
validated
by
the
use
of
26
cryptography.
27
NEW
SUBSECTION
.
14A.
“Smart
contract”
means
an
event-driven
28
program
or
computerized
transaction
protocol
that
runs
on
a
29
distributed,
decentralized,
shared,
and
replicated
ledger
that
30
executes
the
terms
of
a
contract
by
taking
custody
over
and
31
instructing
transfer
of
assets
on
the
ledger.
32
Sec.
3.
NEW
SECTION
.
554D.106A
Use
of
distributed
ledger
33
technology.
34
A
person
who,
in
engaging
in
or
affecting
interstate
or
35
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foreign
commerce,
uses
distributed
ledger
technology
to
secure
1
information
that
the
person
owns
or
has
the
right
to
use
2
retains
the
same
rights
of
ownership
or
use
with
respect
to
3
such
information
as
before
the
person
secured
the
information
4
using
distributed
ledger
technology.
This
section
does
not
5
apply
to
the
use
of
distributed
ledger
technology
to
secure
6
information
in
connection
with
a
transaction
to
the
extent
that
7
the
terms
of
the
transaction
expressly
provide
for
the
transfer
8
of
rights
of
ownership
or
use
with
respect
to
such
information.
9
Sec.
4.
Section
554D.108,
subsection
2,
Code
2021,
is
10
amended
to
read
as
follows:
11
2.
A
contract
shall
not
be
denied
legal
effect
or
12
enforceability
solely
because
an
electronic
record
was
used
in
13
its
formation
or
because
the
contract
is
a
smart
contract
or
14
contains
a
smart
contract
provision
.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
Code
chapter
554D,
the
uniform
electronic
transactions
Act,
19
facilitates
the
use
of
electronic
transactions
in
commerce
by
20
giving
legal
recognition
to
electronic
records,
signatures,
and
21
contracts.
This
bill
modifies
the
Code
chapter
by
permitting
22
the
use
of
distributed
ledger
technology
and
smart
contracts
in
23
electronic
transactions.
24
The
bill
defines
“distributed
ledger
technology”
as
an
25
electronic
record
of
transactions
or
other
data
that
is
26
uniformly
ordered,
redundantly
maintained
or
processed
by
one
27
or
more
computers
or
machines
to
guarantee
the
consistency
or
28
nonrepudiation
of
the
recorded
transactions
or
other
data,
and
29
is
validated
by
the
use
of
cryptography.
The
bill
defines
30
“smart
contract”
as
an
event-driven
program
or
computerized
31
transaction
protocol
that
runs
on
a
distributed,
decentralized,
32
shared,
and
replicated
ledger
that
executes
the
terms
of
a
33
contract
by
taking
custody
over
and
instructing
transfer
of
34
assets
on
the
ledger.
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The
bill
adds
contracts
secured
through
distributed
ledger
1
technology
and
smart
contracts
to
the
definition
of
“contract”.
2
The
bill
adds
the
concept
of
security
through
distributed
3
ledger
technology
to
the
definitions
of
“electronic
record”
and
4
“electronic
signature”.
5
The
bill
provides
that
a
person
who,
in
engaging
in
or
6
affecting
interstate
or
foreign
commerce,
uses
distributed
7
ledger
technology
to
secure
information
that
the
person
owns
8
or
has
the
right
to
use
retains
the
same
rights
of
ownership
9
or
use
with
respect
to
such
information
as
before
the
person
10
secured
the
information
using
distributed
ledger
technology,
11
unless
in
connection
with
a
transaction
with
terms
that
12
expressly
provide
for
the
transfer
of
rights
of
ownership
or
13
use
with
respect
to
such
information.
14
The
bill
provides
that
a
contract
shall
not
be
denied
legal
15
effect
or
enforceability
solely
because
the
contract
is
a
smart
16
contract
or
contains
a
smart
contract
provision.
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