ARIZONA HOUSE OF REPRESENTATIVES

HB 2417: signatures; electronic transactions; blockchain technology

PRIME SPONSOR: Representative Weninger, LD 17

BILL STATUS: Chaptered

Abstract

Relating to electronic transactions through blockchain technology.

Provisions

1. Adds a new Article (Blockchain Technology) to the Arizona Revised Statutes, Title 44 (Trade and Commerce), Chapter 26 (Electronic Transactions).

2. Applies the bill's provisions to Title 47 (Uniform Commercial Code), Chapter 2 (Sales), Chapter 2A (Leases) and Chapter 7 (Documents of Title).

3. Classifies a signature obtained through blockchain technology as an electronic form of signature.

4. Designates a record or contract secured through blockchain technology as an electronic record form.

5. Authorizes a smart contract in commerce transactions and confirms the validity of the contract, which cannot be denied legal standing or enforceability solely due to its smart contract term.

6. Maintains a person's right to ownership and use of information secured using blockchain technology for interstate or foreign commerce. 

7. Prohibits the transfer of a person's right of ownership or use of information from any transaction.

8. Defines blockchain technology and smart contract.  

Current Law

Title 44, Chapter 26, the Arizona Electronic Transactions Act applies to any electronic record and electronic signature created, sent, received or stored as it relates to a transaction, except as noted and governed by another law.  The chapter applies only to electronic transactions between consenting parties, outlines general provisions that define terms, security and verification measures. 

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Fifty-third Legislature                  HB2417

First Regular Session                    Version 5: Chaptered

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