|
Public Act 101-0514
|
| HB3575 Enrolled | LRB101 11071 RJF 56276 b |
|
|
AN ACT concerning business.
|
Be it enacted by the People of the State of Illinois,
|
represented in the General Assembly:
|
Section 1. Short title. This Act may be cited as the |
Blockchain Technology Act.
|
Section 5. Definitions. As used in this Act:
|
"Blockchain" means an electronic record created by the use |
of a decentralized method by multiple parties to verify and |
store a digital record of transactions which is secured by the |
use of a cryptographic hash of previous transaction |
information.
|
"Cryptographic hash" means a mathematical algorithm which |
performs a one-way conversion of input data into output data of |
a specified size to verify the integrity of the data.
|
"Electronic" means relating to technology having |
electrical, digital, magnetic, wireless, optical, |
electromagnetic, or similar capabilities.
|
"Electronic record" means a record created, generated, |
sent, communicated, received, or stored by electronic means, |
including a blockchain or a smart contract.
|
"Record" means information that is inscribed on a tangible |
medium or that is stored in an electronic or other medium and |
is retrievable in perceivable form.
|
|
"Smart contract" means a contract stored as an electronic |
record which is verified by the use of a blockchain.
|
Section 10. Permitted use of blockchain.
|
(a) A smart contract, record, or signature may not be |
denied legal effect or enforceability solely because a |
blockchain was used to create, store, or verify the smart |
contract, record, or signature.
|
(b) In a proceeding, evidence of a smart contract, record, |
or signature must not be excluded solely because a blockchain |
was used to create, store, or verify the smart contract, |
record, or signature.
|
(c) If a law requires a record to be in writing, submission |
of a blockchain which electronically contains the record |
satisfies the law.
|
(d) If a law requires a signature, submission of a |
blockchain which electronically contains the signature or |
verifies the intent of a person to provide the signature |
satisfies the law.
|
Section 15. Limitations to the use of blockchain.
|
(a) If parties have agreed to conduct a transaction by use |
of a blockchain and a law requires that a contract or other |
record relating to the transaction be in writing, the legal |
effect, validity, or enforceability of the contract or other |
record may be denied if the blockchain containing an electronic |
|
record of the transaction is not in a form that is capable of |
being retained and accurately reproduced for later reference by |
all parties or other persons who are entitled to retain the |
contract or other record.
|
(b) Except as otherwise provided in subsection (f), if a |
law other than this Act requires a record to be posted or |
displayed in a certain manner, to be sent, communicated, or |
transmitted by a specified method, or to contain information |
that is formatted in a certain matter, the use of a blockchain |
to post, display, send, communicate, transmit, or store such a |
record does not satisfy the requirement of the other law.
|
(c) If a person inhibits the ability of another person to |
store or retrieve information contained in a blockchain, such |
information is not enforceable by the person who inhibited the |
storage or retrieval.
|
(d) Regardless of whether a smart contract was used to |
establish the relationship between the parties to an agreement, |
a requirement that a notice or an acknowledgment or other |
response to a notice be in writing is not satisfied by |
providing or delivering the notice or recording an |
acknowledgment or other response to the notice by the use of a |
blockchain if the notice is a notice of:
|
(1) the cancellation or termination of service by a |
public utility;
|
(2) default, acceleration, repossession, foreclosure, |
or eviction, or the right to cure, under a credit agreement |
|
secured by or a rental agreement for, a primary residence |
of a natural person;
|
(3) the cancellation or termination of a policy of |
health insurance, benefits received under a policy of |
health insurance, or benefits received under a policy of |
life insurance, excluding annuities; or
|
(4) the recall of a product, or material failure of a |
product, that risks endangering the health or safety of a |
person.
|
(e) A requirement that a document be in writing is not |
satisfied by the use of a blockchain if the document is |
required to accompany any transportation or handling of |
hazardous materials, pesticides, or other toxic or dangerous |
materials.
|
(f) The requirements of this Section may not be varied by |
agreement, except that:
|
(1) to the extent a law other than this Act requires |
that a contract or other record relating to a transaction |
be in writing, but permits that requirement to be varied by |
agreement, the provisions of subsection (a) concerning the |
denial of legal effect, validity, or enforceability of the |
contract or other record relating to the transaction may |
also be varied by agreement; and
|
(2) a requirement under a law other than this Act to |
send, communicate, or transmit a record by first-class |
mail, postage prepaid, or regular United States mail, may |
|
be varied by agreement to the extent permitted by the other |
law.
|
Section 20. Local government restrictions.
|
(a) A unit of local government shall not:
|
(1) impose any tax or fee on the use of a blockchain or |
smart contract by any person or entity;
|
(2) require any person or entity to obtain from the |
unit of local government any certificate, license, or |
permit to use a blockchain or smart contract; or
|
(3) impose any other requirement relating to the use of |
a blockchain or smart contract by any person or entity.
|
(b) Nothing in this Section prohibits a unit of local |
government from using a blockchain or smart contract in the |
performance of its powers or duties in a manner not |
inconsistent with the provisions of this Act.
|