A bill that seeks to allow the formation of a blockchain working group has been debated by the California legislature. The California bill 2658 which was introduced earlier this year has since been passed by the State’s two houses. However, it awaits the approval of Governor Jerry Brown before it becomes law. He has 30 days to either approve the bill or veto it.

According to the bill, blockchain is defined as “a mathematically secured, chronological, and decentralized ledger or database.” Although the definition is only temporary and will be used until January 2022 upon when it will expire. The bill demands the Government Operations Agency’s secretary establish a blockchain working group by July 1, 2019.

Made up of 17 members

The bill stipulates that the blockchain working group should be made up of a total of 17 people. Members will be picked from the government as well as private industry, from both non-technology and technology fields. Additionally, people with knowledge in law and those who represent consumer organizations may also be appointed. The team will consist of the Director of Finance, State Chief Information Officer or their nominees. Finally, a member of the State’s Assembly as well as a member of the Senate.

Following its formation, the group will look into the uses of blockchain technology. The group will look at how the technology can benefit the government and private firms. It will also evaluate the technological risk in its use by businesses as well as the state government of California. According to the bill, the team should table its report by the first of July 2019.

Expected recommendations

The report should recommend appropriate modifications to blockchain modification as per Section 11546.8. It should also recommend how other code sections that may be affected by blockchain’s deployment should be amended.

“The members of the working group shall serve without compensation, but shall be reimbursed for all necessary expenses actually incurred in the performance of their duties,” states the bill.

In May, the legislature in New York State furthered a bill to establish a blockchain team. Similarly, Connecticut’s governor approved a bill into law, in June, enabling the formation of a blockchain working team.