5/1/2016

Back in August of Last Year I broke the story on CoinTelegraph:

Vermont Considering Blockchain Tech for State Records, Smart Contracts

As reported by Stan Higgings of CoinDesk earlier this year,

Vermont Says Blockchain Record-Keeping System Too Costly

There has been movement on Blockchain Tech in Vermont Since

VT H0868 Engross An act relating to miscellaneous economic development provisions http://legislature.vermont.gov/bill/status/2016/H.86 8 includes a section on “Blockchain Enabling” (Extracted below)which passed the House last month currently engrossed and the next action is 2016–05–02 Senate New Business/Third Reading:

Sec. I.1. 12 V.S.A. § 1913 is added to read: 3 § 1913. BLOCKCHAIN ENABLING

(a) In this section, “blockchain technology” means a mathematically secured, chronological, and decentralized consensus ledger or database, BILL AS PASSED BY THE HOUSE H.868 2016 Page 158 of 184 VT LEG #314328 v.9 1 whether maintained via Internet interaction, peer-to-peer network, or 2 otherwise.

(b) Presumptions and admissibility.

(1) Extrinsic evidence of authenticity as a condition precedent to 5 admissibility in a Vermont court is not required for a record maintained by a valid application of blockchain technology.

(2) The following presumptions apply:

(A) A fact or record verified through a valid application of blockchain technology is authentic.

(B) The date and time of the recordation of the fact or record established through such a blockchain is the date and time that the fact or record was added to the blockchain.

(C) The person established through such a blockchain as the person who made such recordation is the person who made the recordation.

(3) A presumption does not extend to the truthfulness, validity, or legal status of the contents of the fact or record.

(4) A person against whom the fact operates has the burden of producing evidence sufficient to support a finding that the presumed fact, record, time, or identity is not authentic as set forth on the date added to the blockchain, but the presumption does not shift to a person the burden of BILL AS PASSED BY THE HOUSE H.868 2016

Page 159 of 184 VT LEG #314328 v.9

persuading the trier of fact that the underlying fact or record is itself accuate in what it purports to represent.

(c) Without limitation, the presumption established in this section shall apply to a fact or record maintained by blockchain technology to determine:

(1) contractual parties, provisions, execution, effective dates, and status;

(2) the ownership, assignment, negotiation, and transfer of money, property, contracts, instruments, and other legal rights and duties;

(3) identity, participation, and status in the formation, management, record keeping, and governance of any person;

(4) identity, participation, and status for interactions in private transactions and with a government or governmental subdivision, agency, or instrumentality;

(5) the authenticity or integrity of a record, whether publicly or privately relevant; and

(6) the authenticity or integrity of records of communication.

(d) The provisions of this section shall not create or negate:

(1) an obligation or duty for any person to adopt or otherwise implement blockchain technology for any purpose authorized in this section; or

(2) the legality or authorization for any particular underlying activity whose practices or data are verified through the application of blockchain technology