Bill Text_ AZ HB2417 _ 2017 _ Fifty-third Legislature 1st Regular _ Chaptered _ LegiScan bitcoin digital currency

Bill Text_ AZ HB2417 _ 2017 _ Fifty-third Legislature 1st Regular _ Chaptered _ LegiScan bitcoin digital currency

Be it

Enacted by the legislature of the state of arizona:

Section 1. Section 44-7003, arizona revised

Statutes, is amended to read:

START STATUTE 44-7003. Scope

A. Except

As otherwise provided in subsection subsections B and C of this section, this chapter

Applies to any electronic record and electronic signature relating to a

Transaction.

B. For the purposes of

This article and articles 2, 3 and 4 of this chapter, this chapter does not apply to a

Transaction to the extent the transaction is governed by:

1. Title

14 as it relates to the creation and execution of wills, codicils or

Testamentary trusts.

2. Title

47, other than title

47, chapters 2

And 2A and section 47‑1306 and as otherwise provided in section 44-7016.

C. Article

5 of this chapter applies only to transactions governed by title 47, chapters

2, 2A and 7.Bitcoin digital currency

C. D. This chapter applies

To an electronic record or electronic signature otherwise excluded from the

Application of this chapter under subsection B or C of this section to the extent the

Record or signature is governed by a law other than those laws described in

Subsection B or

C of this

Section.

D. E. Any transaction

Subject to this chapter is also subject to any other applicable substantive

Law. END STATUTE

Sec. 2. Title 44, chapter 26, arizona revised

Statutes, is amended by adding article 5, to read:

ARTICLE

5. BLOCKCHAIN TECHNOLOGY

START STATUTE 44-7061. Signatures

And records secured through blockchain technology; smart contracts; ownership

Of information; definitions

A. A

Signature that is secured through blockchain technology is considered to be in

An electronic form and to be an electronic signature.Bitcoin digital currency

B. A

Record or contract that is secured through blockchain technology is considered

To be in an electronic form and to be an electronic record.

C. Smart

Contracts may exist in commerce. A contract relating to a

Transaction may not be denied legal effect, validity or enforceability solely

Because that contract contains a smart contract term.

D. Notwithstanding

Any other law, a person that, in or affecting interstate or foreign commerce,

Uses blockchain technology to secure information that the person owns or has

The right to use retains the same rights of ownership or use with respect to

That information as before the person secured the information using blockchain

Technology. This subsection does not apply to the use of blockchain

Technology to secure information in connection with a transaction to the extent

bitcoin digital currency

That the terms of the transaction expressly provide for the transfer of rights

Of ownership or use with respect to that information.

E. For

The purposes of this section:

1. Blockchain

Technology means distributed ledger technology that uses a distributed,

Decentralized, shared and replicated ledger, which may be public or private,

Permissioned or permissionless, or driven by tokenized crypto economics or

Tokenless. The data on the ledger is protected with cryptography, is

Immutable and auditable and provides an uncensored truth.

2. Smart

Contract means an event-driven program, with state, that runs on a

Distributed, decentralized, shared and replicated ledger and that can take

Custody over and instruct transfer of assets on that ledger. END STATUTE