Florida Senate - 2019 CS for SB 1024 By the Committee on Innovation, Industry, and Technology; and Senator Gruters 580-03763-19 20191024c1 1 A bill to be entitled 2 An act relating to blockchain technology; providing 3 legislative findings; establishing the Florida 4 Blockchain Task Force within the Department of 5 Financial Services; requiring the task force to 6 develop a specified master plan; specifying the 7 composition of the task force; specifying duties and 8 procedures of the task force; providing that task 9 force members shall serve without compensation but are 10 entitled to certain reimbursement; requiring the task 11 force to submit a specified report to the Governor and 12 the Legislature and to make presentations; providing 13 that the task force is entitled to assistance and 14 services of state governmental entities; requiring the 15 department to provide support staff and other 16 assistance to the task force; providing for 17 termination of the task force; providing an effective 18 date. 19 20 Be It Enacted by the Legislature of the State of Florida: 21 22 Section 1. (1) The Legislature finds that: 23 (a) Blockchain technology and distributed ledger technology 24 allow the secure recording of transactions through cryptographic 25 algorithms and distributed record sharing, and such technology 26 has reached a point where the opportunities for efficiency, cost 27 savings, and cybersecurity deserve study. 28 (b) Blockchain technology is a promising way to facilitate 29 more efficient government service delivery models and economies 30 of scale, including facilitating safe paperless transactions and 31 recordkeeping that are nearly impervious to cyberattacks and 32 data destruction. 33 (c) Blockchain technology can reduce the prevalence of 34 disparate government computer systems, databases, and custom 35 built software interfaces; reduce costs associated with 36 maintenance and implementation; streamline information sharing; 37 and allow more areas of the state to electronically participate 38 in government services. 39 (d) Nations, other states, and municipalities across the 40 world are studying and implementing governmental reforms that 41 bolster trust and reduce bureaucracy through verifiable open 42 source blockchain technology in a variety of areas, including, 43 but not limited to, medical and health records, land records, 44 banking, tax and fee payments, smart contracts, professional 45 accrediting, and property auctions. 46 (e) It is in the public interest to establish a Florida 47 Blockchain Task Force comprised of government and industry 48 representatives to study the ways in which state, county, and 49 municipal governments can benefit from a transition to a 50 blockchain-based system for recordkeeping, security, and service 51 delivery and to develop and submit recommendations to the 52 Governor and the Legislature concerning the potential for 53 implementation of blockchain-based systems that promote 54 government efficiencies, better services for citizens, economic 55 development, and safer cyber-secure interaction between 56 government and the public. 57 (2) The Florida Blockchain Task Force, a task force as 58 defined in s. 20.03, Florida Statutes, is established within the 59 Department of Financial Services to explore and develop a master 60 plan for fostering the expansion of the blockchain industry in 61 the state, to recommend policies and state investments to help 62 make this state a leader in blockchain technology, and to issue 63 a report to the Governor and the Legislature. The task force 64 shall study if and how state, county, and municipal governments 65 can benefit from a transition to a blockchain-based system for 66 recordkeeping, data security, financial transactions, and 67 service delivery and identify ways to improve government 68 interaction with businesses and the public. 69 (a) The master plan shall: 70 1. Identify the economic growth and development 71 opportunities presented by blockchain technology. 72 2. Assess the existing blockchain industry in the state. 73 3. Identify innovative and successful blockchain 74 applications currently used by industry and other governments to 75 determine viability for state applications. 76 4. Review workforce needs and academic programs required to 77 build blockchain technology expertise across all relevant 78 industries. 79 5. Make recommendations to the Governor and the Legislature 80 that will promote innovation and economic growth by reducing 81 barriers to and expedite the expansion of the state’s blockchain 82 industry. 83 (b) The task force shall consist of 12 members. Membership 84 shall be as follows: 85 1. Three agency heads or executive directors of cabinet 86 agencies, or their designees, appointed by the Governor. 87 2. Four members of the private sector with knowledge and 88 experience in blockchain technology, appointed by the Governor. 89 3. Three members from the private sector with knowledge and 90 experience in blockchain technology, appointed by the Chief 91 Financial Officer. 92 4. One member from the private sector with knowledge and 93 experience in blockchain technology, appointed by the President 94 of the Senate. 95 5. One member from the private sector with knowledge and 96 experience in blockchain technology, appointed by the Speaker of 97 the House of Representatives. 98 99 Members of the task force shall reflect the ethnic diversity of 100 the state. 101 (c) Within 90 days after the effective date of this act, a 102 majority of the members of the task force must be appointed and 103 the task force shall hold its first meeting. The task force 104 shall elect one of its members to serve as chair. Members of the 105 task force shall serve for the duration of the existence of the 106 task force. Any vacancy that occurs shall be filled in the same 107 manner as the original appointment. Task force members shall 108 serve without compensation, but are entitled to reimbursement 109 for per diem and travel expenses as provided in s. 112.061, 110 Florida Statutes. 111 (d) The task force shall study blockchain technology, 112 including, but not limited to, the following: 113 1. Opportunities and risks associated with using blockchain 114 and distributed ledger technology for state and local 115 governments. 116 2. Different types of blockchains, both public and private, 117 and different consensus algorithms. 118 3. Projects and cases currently under development in other 119 states and local governments, and how these cases could be 120 applied in this state. 121 4. Ways the Legislature can modify general law to support 122 secure paperless recordkeeping, increase cybersecurity, improve 123 interactions with citizens, and encourage blockchain innovation 124 for businesses in the state. 125 5. Identifying potential economic incentives for companies 126 investing in blockchain technologies in collaboration with the 127 state. 128 6. Recommending projects for potential blockchain 129 solutions, including, but not limited to, use cases for state 130 agencies that would improve services for citizens or businesses. 131 7. Identifying the technical skills necessary to develop 132 blockchain technology and ensuring that instruction in such 133 skills is available at secondary and postsecondary educational 134 institutions in this state. 135 (3) The task force shall submit a report to the Governor, 136 the President of the Senate, and the Speaker of the House of 137 Representatives and present its findings to the appropriate 138 legislative committees in each house of the Legislature within 139 180 days after the initial meeting of the task force. The report 140 must include: 141 (a) A general description of the costs and benefits of 142 state and local government agencies using blockchain technology. 143 (b) Recommendations concerning the feasibility of 144 implementing blockchain technology in the state and the best 145 approach to finance the cost of implementation. 146 (c) Recommendations for specific implementations to be 147 developed by relevant state agencies. 148 (d) Any draft legislation the task force deems appropriate 149 to implement such blockchain technologies. 150 (e) Identification of one pilot project that may be 151 implemented in the state. 152 (f) Any other information deemed relevant by the task 153 force. 154 (4) The task force is entitled to the assistance and 155 services of any state agency, board, bureau, or commission as 156 necessary and available for the purposes of this act. 157 (5) The Department of Financial Services shall provide 158 support staff for the task force and any relevant studies, data, 159 and materials in its possession to assist the task force in the 160 performance of its duties. 161 (6) The task force shall terminate upon submission of the 162 report and the presentation of findings. 163 Section 2. This act shall take effect upon becoming a law.