ARIZONA HOUSE OF REPRESENTATIVES

HB 2603: corporations; blockchain technology
PRIME SPONSOR: Representative Weninger, LD 17 BILL STATUS: Caucus & COW                 COM: DP 9-0-0-0

Abstract

Relating to corporations and blockchain technology.

Provisions

1. States that the terms written or any writing within Title 10 (Corporations and Associations) sections of law apply to blockchain technology. (Sec. 1)

2. Establishes that blockchain technology applies to electronic transactions within Title 10 (Corporations and Associations).  (Sec. 1)

Current Law

Current law stipulates that blockchain technology applies to transactions within the Uniform Commercial Code for sales, leases and documents of title. The provisions apply to an electronic record or electronic signature. (A.R.S. § 44-7003)

Additional Information

Laws 2017, Chapter 97, added blockchain technology to the Arizona Revised Statutes, Title 44 (Trade and Commerce), Chapter 26 (Electronic Transactions). The new law applies to Title 47 (Uniform Commercial Code), Chapter 2 (Sales), Chapter 2A (Leases) and Chapter 7 (Documents of Title). Among other things, the new law classifies a signature obtained through blockchain technology as an electronic form of signature and designates a record or contract secured through blockchain technology as an electronic record form. Additionally, the law 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. Finally, the law maintains a person's right to ownership and use of information secured using blockchain technology for interstate or foreign commerce.

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Fifty-third Legislature                  HB 2603

Second Regular Session                               Version 2: Caucus & COW

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