Florida Senate - 2019 COMMITTEE AMENDMENT Bill No. SB 1024 Ì847996oÎ847996 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Innovation, Industry, and Technology (Gruters) recommended the following: 1 Senate Amendment (with title amendment) 2 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. 144 145 ================= 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.