California State Legislature Passes Blockchain Working Group Bill

Blockchain, News, Regulation | August 30, 2018 By:

A California bill that calls for the establishment of a working group to examine the potential benefits of blockchain has passed both houses of the state legislature and will now go to Governor Jerry Brown for approval.

First introduced in February of this year, California bill 2658 would define blockchain as “a mathematically secured, chronological, and decentralized ledger or database,” and requires the Secretary of the Government Operations Agency to appoint a blockchain working group on or before July 1, 2019.

The blockchain working group would consist of 17 members, from both government and the private sector. They will evaluate the risks, benefits and legal implications associated with the use of blockchain in state government and California-based businesses. The group has until July 1, 2020 to draft its report.

“The working group’s report shall include recommendations for modifications to the definition of blockchain in Section 11546.8 and recommendations for amendments to other code sections that may be impacted by the deployment of blockchain,” the bill said. “The members of the working group shall serve without compensation, but shall be reimbursed for all necessary expenses actually incurred in the performance of their duties.”

Other US states have also passed bills that form blockchain working groups. In June of this year, Connecticut governor Dannel Malloy signed Biil SB443 into law, which establishes a blockchain working group to “develop a master plan for fostering the expansion and growth of the blockchain industry in the state and recommend policies and state investments to make Connecticut the world leader in blockchain technology.”