FINAL BILL REPORT
SSB 5638
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
C 153 L 19
Synopsis as Enacted
Brief Description: Recognizing the validity of distributed ledger technology.
Sponsors: Senate Committee on Environment, Energy & Technology (originally sponsored by Senators Brown, Rivers, Becker and Short).
Senate Committee on Environment, Energy & Technology
House Committee on Innovation, Technology & Economic Development
Background: The National Conference of Commissioners on Uniform State Laws (NCCUSL) adopted the Uniform Electronic Transactions Act (UETA) in 1999. UETA established the general rule of validity of electronic signatures and records relating to a transaction, defined as those interactions between people relating to business, commercial, and governmental affairs.
On June 30, 2000, the federal Electronic Signatures in Global and National Commerce Act (ESIGN) established electronic signatures, contracts, and records are valid or enforceable if they meet certain criteria. In general, a state law may only modify or supersede the provisions of ESIGN if the law or regulation:
constitutes a conforming enactment of the 1999 NCCUSL version of UETA; or
provides alternative procedures for using electronic signatures or records consistent with ESIGN and do not require, or give greater legal effect, to a specific technology.
If a law is enacted after June 30, 2000, it must make reference to the subsection in ESIGN regarding exemption to preemption.
Summary: An electronic record may not be denied legal effect, validity, or enforceability solely because it is generated or stored using distributed ledger technology.
Distributed ledger technology means any distributed ledger protocol and supporting infrastructure, including blockchain, using a distributed, decentralized, shared, and replicated ledger.
Blockchain means a cryptographically secured, chronological, and decentralized consensus ledger or consensus database maintained via Internet, peer-to-peer network, or other similar interaction.
Votes on Final Passage:
Senate | 46 | 0 | |
House | 96 | 1 |
Effective: | July 28, 2019 |