Bill Text: IA SF541 | 2021-2022 | 89th General Assembly | Enrolled
Bill Title: A bill for an act relating to electronic transactions by permitting the use of distributed ledger technology and smart contracts and including effective date provisions. (Formerly SSB 1207, SF 303.) Effective date: 01/01/2022.
Spectrum: Committee Bill
Status: (Passed) 2021-05-20 - Signed by Governor. S.J. 1150. [SF541 Detail]
Download: Iowa-2021-SF541-Enrolled.html
Senate
File
541
-
Enrolled
Senate
File
541
AN
ACT
RELATING
TO
ELECTRONIC
TRANSACTIONS
BY
PERMITTING
THE
USE
OF
DISTRIBUTED
LEDGER
TECHNOLOGY
AND
SMART
CONTRACTS
AND
INCLUDING
EFFECTIVE
DATE
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
554D.103,
subsections
4,
7,
and
8,
Code
2021,
are
amended
to
read
as
follows:
4.
“Contract”
means
the
total
legal
obligation
resulting
from
the
parties’
agreement
as
affected
by
this
chapter
and
other
applicable
law.
“Contract”
includes
any
contract
secured
through
distributed
ledger
technology
and
a
smart
contract.
7.
“Electronic
record”
means
a
record
created,
generated,
sent,
communicated,
received,
or
stored
by
electronic
means.
“Electronic
record”
includes
any
record
secured
through
distributed
ledger
technology.
Senate
File
541,
p.
2
8.
“Electronic
signature”
means
an
electronic
sound,
symbol,
or
process
attached
to
or
logically
associated
with
a
record
and
executed
or
adopted
by
a
person
with
the
intent
to
sign
the
record.
“Electronic
signature”
includes
a
signature
that
is
secured
through
distributed
ledger
technology.
Sec.
2.
Section
554D.103,
Code
2021,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
4A.
“Distributed
ledger
technology”
means
an
electronic
record
of
transactions
or
other
data
to
which
all
of
the
following
apply:
a.
The
electronic
record
is
uniformly
ordered.
b.
The
electronic
record
is
redundantly
maintained
or
processed
by
one
or
more
computers
or
machines
to
guarantee
the
consistency
or
nonrepudiation
of
the
recorded
transactions
or
other
data.
NEW
SUBSECTION
.
14A.
“Smart
contract”
means
an
event-driven
program
or
computerized
transaction
protocol
that
runs
on
a
distributed,
decentralized,
shared,
and
replicated
ledger
that
executes
the
terms
of
a
contract.
For
purposes
of
this
subsection,
“executes
the
terms
of
a
contract”
may
include
taking
custody
over
and
instructing
the
transfer
of
assets.
Sec.
3.
NEW
SECTION
.
554D.106A
Use
of
distributed
ledger
technology.
A
person
who,
in
engaging
in
or
affecting
interstate
or
foreign
commerce,
uses
distributed
ledger
technology
to
secure
information
that
the
person
owns
or
has
the
right
to
use
retains
the
same
rights
of
ownership
or
use
with
respect
to
such
information
as
before
the
person
secured
the
information
using
distributed
ledger
technology.
This
section
does
not
apply
to
the
use
of
distributed
ledger
technology
to
secure
information
in
connection
with
a
transaction
to
the
extent
that
the
terms
of
the
transaction
expressly
provide
for
the
transfer
of
rights
of
ownership
or
use
with
respect
to
such
information.
Sec.
4.
Section
554D.108,
subsection
2,
Code
2021,
is
amended
to
read
as
follows:
2.
A
contract
shall
not
be
denied
legal
effect
or
enforceability
solely
because
an
electronic
record
was
used
in
its
formation
or
because
the
contract
is
a
smart
contract
or
contains
a
smart
contract
provision
.
Senate
File
541,
p.
3
Sec.
5.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
2022.
______________________________
JAKE
CHAPMAN
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
541,
Eighty-ninth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2021
______________________________
KIM
REYNOLDS
Governor