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.
   20  Be It Enacted by the Legislature of the State of Florida:
   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.
   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.