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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Blockchain Technology Act. | ||||||
6 | Section 5. Definitions. As used in this Act:
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7 | "Blockchain" means an electronic record created by the use | ||||||
8 | of a decentralized method by multiple parties to verify and | ||||||
9 | store a digital record of transactions which is secured by the | ||||||
10 | use of a cryptographic hash of previous transaction | ||||||
11 | information.
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12 | "Cryptographic hash" means a mathematical algorithm which | ||||||
13 | performs a one-way conversion of input data into output data of | ||||||
14 | a specified size to verify the integrity of the data.
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15 | "Electronic" means relating to technology having | ||||||
16 | electrical, digital, magnetic, wireless, optical, | ||||||
17 | electromagnetic, or similar capabilities.
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18 | "Electronic record" means a record created, generated, | ||||||
19 | sent, communicated, received, or stored by electronic means, | ||||||
20 | including a blockchain or a smart contract.
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21 | "Record" means information that is inscribed on a tangible | ||||||
22 | medium or that is stored in an electronic or other medium and | ||||||
23 | is retrievable in perceivable form.
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1 | "Smart contract" means a contract stored as an electronic | ||||||
2 | record which is verified by the use of a blockchain.
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3 | Section 10. Permitted use of blockchain.
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4 | (a) A smart contract, record, or signature may not be | ||||||
5 | denied legal effect or enforceability solely because a | ||||||
6 | blockchain was used to create, store, or verify the smart | ||||||
7 | contract, record, or signature.
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8 | (b) In a proceeding, evidence of a smart contract, record, | ||||||
9 | or signature must not be excluded solely because a blockchain | ||||||
10 | was used to create, store, or verify the smart contract, | ||||||
11 | record, or signature.
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12 | (c) If a law requires a record to be in writing, submission | ||||||
13 | of a blockchain which electronically contains the record | ||||||
14 | satisfies the law.
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15 | (d) If a law requires a signature, submission of a | ||||||
16 | blockchain which electronically contains the signature or | ||||||
17 | verifies the intent of a person to provide the signature | ||||||
18 | satisfies the law. | ||||||
19 | Section 15. Limitations to the use of blockchain.
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20 | (a) If parties have agreed to conduct a transaction by use | ||||||
21 | of a blockchain and a law requires that a contract or other | ||||||
22 | record relating to the transaction be in writing, the legal | ||||||
23 | effect, validity, or enforceability of the contract or other | ||||||
24 | record may be denied if the blockchain containing an electronic |
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1 | record of the transaction is not in a form that is capable of | ||||||
2 | being retained and accurately reproduced for later reference by | ||||||
3 | all parties or other persons who are entitled to retain the | ||||||
4 | contract or other record.
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5 | (b) Except as otherwise provided in subsection (f), if a | ||||||
6 | law other than this Act requires a record to be posted or | ||||||
7 | displayed in a certain manner, to be sent, communicated, or | ||||||
8 | transmitted by a specified method, or to contain information | ||||||
9 | that is formatted in a certain matter, the use of a blockchain | ||||||
10 | to post, display, send, communicate, transmit, or store such a | ||||||
11 | record does not satisfy the requirement of the other law.
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12 | (c) If a person inhibits the ability of another person to | ||||||
13 | store or retrieve information contained in a blockchain, such | ||||||
14 | information is not enforceable by the person who inhibited the | ||||||
15 | storage or retrieval.
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16 | (d) Regardless of whether a smart contract was used to | ||||||
17 | establish the relationship between the parties to an agreement, | ||||||
18 | a requirement that a notice or an acknowledgment or other | ||||||
19 | response to a notice be in writing is not satisfied by | ||||||
20 | providing or delivering the notice or recording an | ||||||
21 | acknowledgment or other response to the notice by the use of a | ||||||
22 | blockchain if the notice is a notice of:
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23 | (1) the cancellation or termination of service by a | ||||||
24 | public utility;
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25 | (2) default, acceleration, repossession, foreclosure, | ||||||
26 | or eviction, or the right to cure, under a credit agreement |
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1 | secured by or a rental agreement for, a primary residence | ||||||
2 | of a natural person;
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3 | (3) the cancellation or termination of a policy of | ||||||
4 | health insurance, benefits received under a policy of | ||||||
5 | health insurance, or benefits received under a policy of | ||||||
6 | life insurance, excluding annuities; or
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7 | (4) the recall of a product, or material failure of a | ||||||
8 | product, that risks endangering the health or safety of a | ||||||
9 | person.
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10 | (e) A requirement that a document be in writing is not | ||||||
11 | satisfied by the use of a blockchain if the document is | ||||||
12 | required to accompany any transportation or handling of | ||||||
13 | hazardous materials, pesticides, or other toxic or dangerous | ||||||
14 | materials.
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15 | (f) The requirements of this Section may not be varied by | ||||||
16 | agreement, except that:
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17 | (1) to the extent a law other than this Act requires | ||||||
18 | that a contract or other record relating to a transaction | ||||||
19 | be in writing, but permits that requirement to be varied by | ||||||
20 | agreement, the provisions of subsection (a) concerning the | ||||||
21 | denial of legal effect, validity, or enforceability of the | ||||||
22 | contract or other record relating to the transaction may | ||||||
23 | also be varied by agreement; and
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24 | (2) a requirement under a law other than this Act to | ||||||
25 | send, communicate, or transmit a record by first-class | ||||||
26 | mail, postage prepaid, or regular United States mail, may |
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1 | be varied by agreement to the extent permitted by the other | ||||||
2 | law.
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3 | Section 20. Local government restrictions.
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4 | (a) A unit of local government shall not:
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5 | (1) impose any tax or fee on the use of a blockchain or | ||||||
6 | smart contract by any person or entity;
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7 | (2) require any person or entity to obtain from the | ||||||
8 | unit of local government any certificate, license, or | ||||||
9 | permit to use a blockchain or smart contract; or
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10 | (3) impose any other requirement relating to the use of | ||||||
11 | a blockchain or smart contract by any person or entity.
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12 | (b) Nothing in this Section prohibits a unit of local | ||||||
13 | government from using a blockchain or smart contract in the | ||||||
14 | performance of its powers or duties in a manner not | ||||||
15 | inconsistent with the provisions of this Act.
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16 | (c) A home rule unit may not regulate a blockchain or smart | ||||||
17 | contract in a manner inconsistent with the regulation by the | ||||||
18 | State of a blockchain or smart contract under this Act. This | ||||||
19 | subsection (c) is a limitation under subsection (i) of Section | ||||||
20 | 6 of Article VII of the Illinois Constitution on the concurrent | ||||||
21 | exercise by home rule units of powers and functions exercised | ||||||
22 | by the State.
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