A bill to amend California’s electronic records law, aimed at recognizing blockchain transactions, digital signatures, and smart contracts as legal forms of record, has been introduced in the State Assembly.
Assembly Bill 2658, titled “Electronic records: the Uniform Electronic Transactions Act: blockchain technology,” was introduced by Majority Leader Ian Calderon.
Calderon, a Democrat representing the 57th Assembly District, wanted to expand the definition of electronic records and signatures – contained in the Uniform Electronic Transactions Act – to include records and signatures on the blockchain.
The amendment proposes, “A record that is secured through blockchain technology is an electronic record.”
The existing law specifies that a record or signature may not be denied legal effect because it is in electronic form and that a contract may not be denied legal effect because an electronic record was used in its formation.
This bill would revise provisions of the act that define “electronic record” and “electronic signature” to include a record or a signature that is secured through blockchain technology.
The bill also addresses data storage on the blockchain. It proposes that individuals who choose to use a blockchain to secure personal information in the course of carrying out interstate or foreign commerce should retain the rights of ownership to their information.
The definition of “contract” will be expanded to include “a smart contract.”
If passed, the bill on electronic records would advance blockchain use for smart contracts and electronic signatures in the state, a boost for cryptocurrency trade.
California, the most populated state in the US with a $2.3 trillion economy, is transforming into a blockchain-friendly place alongside Arizona and Florida.
Arizona had passed a similar bill last year, and Florida introduced similar legislation last month.