Florida Senate - 2019                        COMMITTEE AMENDMENT
       Bill No. SB 1024
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/02/2019           .                                

       The Committee on Innovation, Industry, and Technology (Gruters)
       recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. (1)The Legislature finds that:
    6         (a)Blockchain technology and distributed ledger technology
    7  allow the secure recording of transactions through cryptographic
    8  algorithms and distributed record sharing, and such technology
    9  has reached a point where the opportunities for efficiency, cost
   10  savings, and cybersecurity deserve study.
   11         (b)Blockchain technology is a promising way to facilitate
   12  more efficient government service delivery models and economies
   13  of scale, including facilitating safe paperless transactions and
   14  recordkeeping that are nearly impervious to cyberattacks and
   15  data destruction.
   16         (c)Blockchain technology can reduce the prevalence of
   17  disparate government computer systems, databases, and custom
   18  built software interfaces; reduce costs associated with
   19  maintenance and implementation; streamline information sharing;
   20  and allow more areas of the state to electronically participate
   21  in government services.
   22         (d)Nations, other states, and municipalities across the
   23  world are studying and implementing governmental reforms that
   24  bolster trust and reduce bureaucracy through verifiable open
   25  source blockchain technology in a variety of areas, including,
   26  but not limited to, medical and health records, land records,
   27  banking, tax and fee payments, smart contracts, professional
   28  accrediting, and property auctions.
   29         (e)It is in the public interest to establish a Florida
   30  Blockchain Task Force comprised of government and industry
   31  representatives to study the ways in which state, county, and
   32  municipal governments can benefit from a transition to a
   33  blockchain-based system for recordkeeping, security, and service
   34  delivery and to develop and submit recommendations to the
   35  Governor and the Legislature concerning the potential for
   36  implementation of blockchain-based systems that promote
   37  government efficiencies, better services for citizens, economic
   38  development, and safer cyber-secure interaction between
   39  government and the public.
   40         (2)The Florida Blockchain Task Force, a task force as
   41  defined in s. 20.03, Florida Statutes, is established within the
   42  Department of Financial Services to explore and develop a master
   43  plan for fostering the expansion of the blockchain industry in
   44  the state, to recommend policies and state investments to help
   45  make this state a leader in blockchain technology, and to issue
   46  a report to the Governor and the Legislature. The task force
   47  shall study if and how state, county, and municipal governments
   48  can benefit from a transition to a blockchain-based system for
   49  recordkeeping, data security, financial transactions, and
   50  service delivery and identify ways to improve government
   51  interaction with businesses and the public.
   52         (a)The master plan shall:
   53         1.Identify the economic growth and development
   54  opportunities presented by blockchain technology.
   55         2.Assess the existing blockchain industry in the state.
   56         3.Identify innovative and successful blockchain
   57  applications currently used by industry and other governments to
   58  determine viability for state applications.
   59         4.Review workforce needs and academic programs required to
   60  build blockchain technology expertise across all relevant
   61  industries.
   62         5.Make recommendations to the Governor and the Legislature
   63  that will promote innovation and economic growth by reducing
   64  barriers to and expedite the expansion of the state’s blockchain
   65  industry.
   66         (b)The task force shall consist of 12 members. Membership
   67  shall be as follows:
   68         1.Three agency heads or executive directors of cabinet
   69  agencies, or their designees, appointed by the Governor.
   70         2.Four members of the private sector with knowledge and
   71  experience in blockchain technology, appointed by the Governor.
   72         3.Three members from the private sector with knowledge and
   73  experience in blockchain technology, appointed by the Chief
   74  Financial Officer.
   75         4.One member from the private sector with knowledge and
   76  experience in blockchain technology, appointed by the President
   77  of the Senate.
   78         5.One member from the private sector with knowledge and
   79  experience in blockchain technology, appointed by the Speaker of
   80  the House of Representatives.
   81         (c)Within 90 days after the effective date of this act, a
   82  majority of the members of the task force must be appointed and
   83  the task force shall hold its first meeting. The task force
   84  shall elect one of its members to serve as chair. Members of the
   85  task force shall serve for the duration of the existence of the
   86  task force. Any vacancy that occurs shall be filled in the same
   87  manner as the original appointment. Task force members shall
   88  serve without compensation, but are entitled to reimbursement
   89  for per diem and travel expenses as provided in s. 112.061,
   90  Florida Statutes.
   91         (d)The task force shall study blockchain technology,
   92  including, but not limited to, the following:
   93         1.Opportunities and risks associated with using blockchain
   94  and distributed ledger technology for state and local
   95  governments.
   96         2.Different types of blockchains, both public and private,
   97  and different consensus algorithms.
   98         3.Projects and cases currently under development in other
   99  states and local governments, and how these cases could be
  100  applied in this state.
  101         4.Ways the Legislature can modify general law to support
  102  secure paperless recordkeeping, increase cybersecurity, improve
  103  interactions with citizens, and encourage blockchain innovation
  104  for businesses in the state.
  105         5.Identifying potential economic incentives for companies
  106  investing in blockchain technologies in collaboration with the
  107  state.
  108         6.Recommending projects for potential blockchain
  109  solutions, including, but not limited to, use cases for state
  110  agencies that would improve services for citizens or businesses.
  111         7.Identifying the technical skills necessary to develop
  112  blockchain technology and ensuring that instruction in such
  113  skills is available at secondary and postsecondary educational
  114  institutions in this state.
  115         (3)The task force shall submit a report to the Governor,
  116  the President of the Senate, and the Speaker of the House of
  117  Representatives and present its findings to the appropriate
  118  legislative committees in each house of the Legislature within
  119  180 days after the initial meeting of the task force. The report
  120  must include:
  121         (a)A general description of the costs and benefits of
  122  state and local government agencies using blockchain technology.
  123         (b)Recommendations concerning the feasibility of
  124  implementing blockchain technology in the state and the best
  125  approach to finance the cost of implementation.
  126         (c)Recommendations for specific implementations to be
  127  developed by relevant state agencies.
  128         (d)Any draft legislation the task force deems appropriate
  129  to implement such blockchain technologies.
  130         (e)Identification of one pilot project that may be
  131  implemented in the state.
  132         (f)Any other information deemed relevant by the task
  133  force.
  134         (4)The task force is entitled to the assistance and
  135  services of any state agency, board, bureau, or commission as
  136  necessary and available for the purposes of this act.
  137         (5)The Department of Financial Services shall provide
  138  support staff for the task force and any relevant studies, data,
  139  and materials in its possession to assist the task force in the
  140  performance of its duties.
  141         (6)The task force shall terminate upon submission of the
  142  report and the presentation of findings.
  143         Section 2. This act shall take effect upon becoming a law.
  145  ================= T I T L E  A M E N D M E N T ================
  146  And the title is amended as follows:
  147         Delete everything before the enacting clause
  148  and insert:
  149                        A bill to be entitled                      
  150         An act relating to blockchain technology; providing
  151         legislative findings; establishing the Florida
  152         Blockchain Task Force within the Department of
  153         Financial Services; requiring the task force to
  154         develop a specified master plan; specifying the
  155         composition of the task force; specifying duties and
  156         procedures of the task force; providing that task
  157         force members shall serve without compensation but are
  158         entitled to certain reimbursement; requiring the task
  159         force to submit a specified report to the Governor and
  160         the Legislature and to make presentations; providing
  161         that the task force is entitled to assistance and
  162         services of state governmental entities; requiring the
  163         department to provide support staff and other
  164         assistance to the task force; providing for
  165         termination of the task force; providing an effective
  166         date.