42.747 Blockchain Technology Working Group.
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/ky/chapter-42/42-747A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)As used in this section, unless the context otherwise requires:
(a)"Blockchain technology" means shared or distributed data structures or digital
ledgers used in peer-to-peer networks that:
1. Store digital transactions;
2. Verify and secure transactions cryptographically; and
3. Allow automated self-execution of smart contracts;
(b)"Peer-to-peer networks" means computer systems that are connected to each
other over the Internet so that each computer system:
1. Is a client and a server simultaneously; and
2. Allows file sharing without use of a central server;
(c)"Smart contract" means a computerized transaction protocol that self-executes
the terms of a contract and that is integrated into the blockchain program
architecture; and
(d)"Contract" means an agreement of the parties in fact, as found in their
language or inferred from other circumstances, including course of
performance, course of dealing, or usage of trade, reached through offer and
mutual acceptance by the parties to be legally bound by the terms of the
agreement which includes valuable consideration for all parties.
(2)There is hereby established a Blockchain Technology Working Group which shall
be attached to the Commonwealth Office of Technology for administrative
purposes.
(3)The working group shall evaluate the feasibility and efficacy of using blockchain
technology to enhance the security of and increase protection for the state's critical
infrastructure, including but not limited to the electric utility grid, natural gas
pipelines, drinking water supply and delivery, wastewater, telecommunications, and
emergency services. The workgroup shall create a priority list of critical
infrastructure that could benefit from the use of blockchain technology and then
determine whether:
(a)Blockchain fits the distributed nature of transactions;
(b)The peer-to-peer network is robust enough to support the use of blockchain
technology;
(c)A cost-benefit analysis of blockchain for each case is warranted to
demonstrate its value, applicability, or efficiency; and
(d)If the parties involved in the blockchain would agree to its usage if deployed.
(4)The workgroup shall consist of nine
(9)members, three
(3)of which shall be ex
officio, as follows:
(a)The chief information officer for the Commonwealth Office of Technology or
his or her designee who shall serve as chair;
(b)The secretary for the Energy and Environment Cabinet or his or her designee;
(c)The chief information officer for the Finance and Administration Cabinet or
his or her designee;
(d)A representative designated by the executive director of the Kentucky Public
Service Commission, who has knowledge of the spatial characteristics of the
infrastructure used by public utilities;
(e)The executive director of Kentucky Department of Homeland Security or his
or her designee;
(f)One
(1)member in academia designated by the chief information officer of
the Commonwealth Office of Technology, who has expertise in blockchain
technology and its applicability to different industry sectors;
(g)One
(1)ex officio member representing municipal utilities designated by the
Kentucky League of Cities;
(h)One
(1)ex officio member representing the investor-owned electric utilities
designated by the executive director of the Kentucky Public Service
Commission; and
(i)One
(1)ex officio member representing Kentucky electric cooperatives
designated by the chairman of the board of the Kentucky Association of
Electric Cooperatives.
(5)The workgroup shall be staffed by the Commonwealth Office of Technology.
(6)The workgroup shall report to the Governor and to the Legislative Research
Commission by December 1 of each year. The report shall include the current
priority list and a discussion of whether blockchain could be deployed, and any
associated cost-benefit analysis.