California could be the next US state that allows companies to store data, including information on shareholders, in the blockchain.
Bill 838 was first introduced by Senator Robert Hertzberg (Hertzberg, Robert) in January, with judging by the public records, only in the last days he began his active consideration. Committee on banking and financial institutions, the state Senate passed this measure on the consideration of the Judicial Committee of 18 April, providing it a rousing recommendation.
If the bill is approved by the Committee and the state Senate, then the data about stocks of companies that are stored in the blockchain, including the right of ownership, will have legal force.
The latest version of the bill allows «to create records controlled by the Corporation or on its behalf, in which the names of all shareholders of the company, address and number of shares registered in the name of each of the shareholders. All issues and transfers of shares will be recorded and stored using the technology of the blockchain or one or more distributed electronic networks.»
In a statement, Hertzberg said that the bill is part of a plan designed to help its staff keep pace with the development of financial technologies. He said:
«The world around us is changing, and the government must adapt to these changes. California needs to continue the tradition of developing new and emerging technologies, especially as the blockchain which is being implemented worldwide and provides a high level of security and resistance to break-ins».
If California approves this measure, the state will join the Delaware
and Wyoming in which the company can use the blockchain for administrative purposes.
The proposed California law includes several provisions which note that there should be provided the opportunity to «turn data into understandable documents within a reasonable period of time» and that record can be used to hold existing stock certificates.