Florida Senate - 2019                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 1704
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       Senator Gruters moved the following:
    1         Senate Amendment (with title amendment)
    3         Delete line 1240
    4  and insert:
    5         Section 40. (1)The Legislature finds that:
    6         (a)Blockchain technology and distributed ledger technology
    7  allow the secure recording of transactions through cryptographic
    8  algorithms and distributed record sharing, and such technology
    9  has reached a point where the opportunities for efficiency, cost
   10  savings, and cybersecurity deserve study.
   11         (b)Blockchain technology is a promising way to facilitate
   12  more efficient government service delivery models and economies
   13  of scale, including facilitating safe paperless transactions and
   14  recordkeeping that are nearly impervious to cyberattacks and
   15  data destruction.
   16         (c)Blockchain technology can reduce the prevalence of
   17  disparate government computer systems, databases, and custom
   18  built software interfaces; reduce costs associated with
   19  maintenance and implementation; streamline information sharing;
   20  and allow more areas of the state to electronically participate
   21  in government services.
   22         (d)Nations, other states, and municipalities across the
   23  world are studying and implementing governmental reforms that
   24  bolster trust and reduce bureaucracy through verifiable open
   25  source blockchain technology in a variety of areas, including,
   26  but not limited to, medical and health records, land records,
   27  banking, tax and fee payments, smart contracts, professional
   28  accrediting, and property auctions.
   29         (e)It is in the public interest to establish a Florida
   30  Blockchain Task Force comprised of government and industry
   31  representatives to study the ways in which state, county, and
   32  municipal governments can benefit from a transition to a
   33  blockchain-based system for recordkeeping, security, and service
   34  delivery and to develop and submit recommendations to the
   35  Governor and the Legislature concerning the potential for
   36  implementation of blockchain-based systems that promote
   37  government efficiencies, better services for citizens, economic
   38  development, and safer cyber-secure interaction between
   39  government and the public.
   40         (2)The Florida Blockchain Task Force, a task force as
   41  defined in s. 20.03, Florida Statutes, is established within the
   42  Department of Financial Services to explore and develop a master
   43  plan for fostering the expansion of the blockchain industry in
   44  the state, to recommend policies and state investments to help
   45  make this state a leader in blockchain technology, and to issue
   46  a report to the Governor and the Legislature. The task force
   47  shall study if and how state, county, and municipal governments
   48  can benefit from a transition to a blockchain-based system for
   49  recordkeeping, data security, financial transactions, and
   50  service delivery and identify ways to improve government
   51  interaction with businesses and the public.
   52         (a)The master plan shall:
   53         1.Identify the economic growth and development
   54  opportunities presented by blockchain technology.
   55         2.Assess the existing blockchain industry in the state.
   56         3.Identify innovative and successful blockchain
   57  applications currently used by industry and other governments to
   58  determine viability for state applications.
   59         4.Review workforce needs and academic programs required to
   60  build blockchain technology expertise across all relevant
   61  industries.
   62         5.Make recommendations to the Governor and the Legislature
   63  that will promote innovation and economic growth by reducing
   64  barriers to and expediting the expansion of the state’s
   65  blockchain industry.
   66         (b)The task force shall consist of 13 members. Membership
   67  shall be as follows:
   68         1.Three agency heads or executive directors of cabinet
   69  agencies, or their designees, appointed by the Governor.
   70         2.Four members of the public or private sector with
   71  knowledge and experience in blockchain technology, appointed by
   72  the Governor.
   73         3.Three members from the public or private sector with
   74  knowledge and experience in blockchain technology, appointed by
   75  the Chief Financial Officer.
   76         4.One member from the private sector with knowledge and
   77  experience in blockchain technology, appointed by the President
   78  of the Senate.
   79         5.One member from the private sector with knowledge and
   80  experience in blockchain technology, appointed by the Speaker of
   81  the House of Representatives.
   82         6.One certified public accountant licensed pursuant to
   83  chapter 473 with knowledge and experience in blockchain
   84  technology, appointed by the Governor.
   86  Members of the task force shall reflect the ethnic diversity of
   87  the state.
   88         (c)Within 90 days after the effective date of this act, a
   89  majority of the members of the task force must be appointed and
   90  the task force shall hold its first meeting. The task force
   91  shall elect one of its members to serve as chair. Members of the
   92  task force shall serve for the duration of the existence of the
   93  task force. Any vacancy that occurs shall be filled in the same
   94  manner as the original appointment. Task force members shall
   95  serve without compensation, and are not entitled to
   96  reimbursement for per diem or travel expenses.
   97         (d)The task force shall study blockchain technology,
   98  including, but not limited to, the following:
   99         1.Opportunities and risks associated with using blockchain
  100  and distributed ledger technology for state and local
  101  governments.
  102         2.Different types of blockchains, both public and private,
  103  and different consensus algorithms.
  104         3.Projects and cases currently under development in other
  105  states and local governments, and how these cases could be
  106  applied in this state.
  107         4.Ways the Legislature can modify general law to support
  108  secure paperless recordkeeping, increase cybersecurity, improve
  109  interactions with citizens, and encourage blockchain innovation
  110  for businesses in the state.
  111         5.Identifying potential economic incentives for companies
  112  investing in blockchain technologies in collaboration with the
  113  state.
  114         6.Recommending projects for potential blockchain
  115  solutions, including, but not limited to, use cases for state
  116  agencies that would improve services for citizens or businesses.
  117         7.Identifying the technical skills necessary to develop
  118  blockchain technology and ensuring that instruction in such
  119  skills is available at secondary and postsecondary educational
  120  institutions in this state.
  121         (3)The task force shall submit a report to the Governor,
  122  the President of the Senate, and the Speaker of the House of
  123  Representatives and present its findings to the appropriate
  124  legislative committees in each house of the Legislature within
  125  180 days after the initial meeting of the task force. The report
  126  must include:
  127         (a)A general description of the costs and benefits of
  128  state and local government agencies using blockchain technology.
  129         (b)Recommendations concerning the feasibility of
  130  implementing blockchain technology in the state and the best
  131  approach to finance the cost of implementation.
  132         (c)Recommendations for specific implementations to be
  133  developed by relevant state agencies.
  134         (d)Any draft legislation the task force deems appropriate
  135  to implement such blockchain technologies.
  136         (e)Identification of one pilot project that may be
  137  implemented in the state.
  138         (f)Any other information deemed relevant by the task
  139  force.
  140         (4)The task force is entitled to the assistance and
  141  services of any state agency, board, bureau, or commission as
  142  necessary and available for the purposes of this section.
  143         (5)The Department of Financial Services shall provide
  144  support staff for the task force and any relevant studies, data,
  145  and materials in its possession to assist the task force in the
  146  performance of its duties.
  147         (6)The task force shall terminate upon submission of the
  148  report and the presentation of findings.
  149         (7)This section shall take effect upon this act becoming a
  150  law.
  151         Section 41. Except as otherwise expressly provided in this
  152  act and except for this section, which shall take effect upon
  153  this act becoming a law, this act shall take effect July 1,
  154  2019.
  156  ================= T I T L E  A M E N D M E N T ================
  157  And the title is amended as follows:
  158         Delete line 156
  159  and insert:
  160         rules; providing legislative findings; establishing
  161         the Florida Blockchain Task Force within the
  162         department; requiring the task force to develop a
  163         specified master plan; specifying the composition of
  164         the task force; specifying duties and procedures of
  165         the task force; providing that task force members
  166         shall serve without compensation but are entitled to
  167         certain reimbursement; requiring the task force to
  168         submit a specified report to the Governor and the
  169         Legislature and to make presentations; providing that
  170         the task force is entitled to assistance and services
  171         of state governmental entities; requiring the
  172         department to provide support staff and other
  173         assistance to the task force; providing for
  174         termination of the task force; providing effective
  175         dates.