Bill Text: NY S01801 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to allowing signatures, records and contracts secured through blockchain technology to be considered in an electronic form and to be an electronic record and signature; allows smart contracts to exist in commerce.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2022-02-14 - referred to governmental operations [S01801 Detail]

Download: New_York-2021-S01801-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1801

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 15, 2021
                                       ___________

        Introduced  by  Sens.  SAVINO, KAPLAN -- read twice and ordered printed,
          and when printed to be committed to  the  Committee  on  Internet  and
          Technology

        AN  ACT  to  amend  the  state technology law, in relation to blockchain
          technology and smart contracts

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section  302  of  the  state technology law is amended by
     2  adding two new subdivisions 6 and 7 to read as follows:
     3    6. "Blockchain technology" shall mean  distributed  ledger  technology
     4  that  uses  a  distributed, decentralized, shared and replicated ledger,
     5  which may be public or private, permissioned or permissionless, or driv-
     6  en by tokenized crypto economics or tokenless. The data on the ledger is
     7  protected with cryptography, is immutable and auditable and provides  an
     8  uncensored truth.
     9    7.  "Smart contract" shall mean an event-driven program that runs on a
    10  distributed, decentralized, shared and replicated ledger  and  that  can
    11  take custody over and instruct transfer of assets on that ledger.
    12    §  2.  The state technology law is amended by adding a new section 310
    13  to read as follows:
    14    § 310. Signatures and records secured  through  blockchain  technology
    15  and  smart  contracts. 1. A signature that is secured through blockchain
    16  technology is considered to be in an electronic form and to be an  elec-
    17  tronic signature.
    18    2.  A record or contract that is secured through blockchain technology
    19  is considered to be in an  electronic  form  and  to  be  an  electronic
    20  record.
    21    3.  Smart  contracts  may  exist in commerce. A contract relating to a
    22  transaction may not be denied legal effect, validity  or  enforceability
    23  solely because that contract contains a smart contract term.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03139-01-1
        S. 1801                             2

     1    4.  Notwithstanding any other law, rule or regulation to the contrary,
     2  a person that, in or affecting  interstate  or  foreign  commerce,  uses
     3  blockchain  technology to secure information that the person owns or has
     4  the right to use retains the  same  rights  of  ownership  or  use  with
     5  respect to that information as before the person secured the information
     6  using  blockchain technology. This subdivision does not apply to the use
     7  of blockchain technology to secure  information  in  connection  with  a
     8  transaction  to  the  extent that the terms of the transaction expressly
     9  provide for the transfer of rights of ownership or use with  respect  to
    10  that  information.
    11    § 3. This act shall take effect immediately.