STAND. COM. REP. NO. 178-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2594

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Intrastate Commerce, to which was referred H.B. No. 2594 entitled:

"A BILL FOR AN ACT RELATING TO BLOCKCHAIN TECHNOLOGY,"

begs leave to report as follows:

The purpose of this measure is to establish a Blockchain Working Group to recommend a definition for blockchain technology and provide recommendations for individuals, businesses, and state agencies on how to use blockchain technology.

Your Committee received testimony in support of this measure from Blockchain Solutions Hawaii LLC and one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that blockchain technology has the potential to provide significant benefits to the public and private sectors. This measure will assist future legislators in regulating blockchain technology by establishing a working group to develop a standard definition of blockchain technology and develop recommendations on the use of blockchain technology across multiple sectors.

Your Committee has amended this measure by:

(1) Establishing the working group in the Office of Enterprise Technology Services (ETS), rather than the Department of Commerce and Consumer Affairs (DCCA);

(2) Changing the chairperson of the working group from the Director of DCCA to the Chief Information Officer of ETS;

(3) Expanding the membership of the working group;

(4) Amending language to permit, rather than require, the chairperson to invite non-agency representatives to serve as members of the working group;

(5) Changing the effective date to July 1, 2050, to encourage further discussion; and

(6) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Intrastate Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2594, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2594, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Intrastate Commerce,

____________________________

TAKASHI OHNO, Chair