S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10443
 
                           I N  A S S E M B L Y
 
                               May 24, 2024
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Hunter) --
   read once and referred to the Committee on Governmental Operations
 
 AN ACT to amend the public lands law  and  the  real  property  law,  in
   relation to establishing central depository databases for governmental
   real property transaction records
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 2  of  the  public  lands  law  is
 amended  by  adding  five  new  paragraphs  c, d, e, f, and g to read as
 follows:
   C. "DISTRIBUTED LEDGER TECHNOLOGY" SHALL MEAN:
   (I) A TECHNOLOGY DEPLOYED IN A DISTRIBUTED FASHION AND SHARED ACROSS A
 NETWORK THAT, WHEN USED IN  CONJUNCTION  WITH  CRYPTOGRAPHIC  SOLUTIONS,
 ENABLE  AUDITABLE  DATA  SHARING  ACROSS  A NETWORK OF UNTRUSTED PARTIC-
 IPANTS; AND
   (II) A SYSTEM THAT ALLOWS MULTIPLE  PARTIES  TO  SHARE  AND  UPDATE  A
 COMMON  DATA  SOURCE  WITHOUT  REQUIRING THE PARTY TO RELY ON ANY SINGLE
 PARTY TO MAINTAIN AND VALIDATE THE DATA.
   D. "TOKENIZATION" SHALL MEAN THE PROCESS OF CREATING DIGITAL OWNERSHIP
 OF REAL WORLD ASSETS.
   E. "DIGITALIZATION" SHALL MEAN THE PROCESS OF  CONVERTING  INFORMATION
 INTO A DIGITAL FORMAT.
   F. "BLOCKCHAIN" SHALL MEAN ANY TECHNOLOGY WHERE DATA IS:
   (I)  SHARED  ACROSS  A  NETWORK  TO CREATE A PUBLIC LEDGER OF VERIFIED
 TRANSACTIONS OR INFORMATION AMONG PARTICIPANTS;
   (II) LINKED USING CRYPTOGRAPHY TO MAINTAIN THE INTEGRITY OF THE PUBLIC
 LEDGER AND TO EXECUTE OTHER FUNCTIONS;
   (III) DISTRIBUTED AMONG NETWORK PARTICIPANTS IN AN  AUTOMATED  FASHION
 TO  CONCURRENTLY  UPDATE NETWORK PARTICIPANTS ON THE STATE OF THE PUBLIC
 LEDGER AND ANY OTHER FUNCTIONS; AND
   (IV) COMPOSED OF SOURCE CODE THAT IS PUBLICLY AVAILABLE.
   G. "FEDERATED BLOCKCHAIN" SHALL MEAN A DISTRIBUTED  LEDGER  TECHNOLOGY
 SYSTEM:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15536-01-4
              

 A. 10443                            2
 
   (I)  IN  WHICH  A PRE-SELECTED GROUP OF ENTITIES, RATHER THAN A SINGLE
 ENTITY OR THE GENERAL PUBLIC, IS RESPONSIBLE FOR VALIDATING TRANSACTIONS
 AND MAINTAINING CONSENSUS ON THE STATE OF THE LEDGER;
   (II)  IN  WHICH  CONTROL AND GOVERNANCE ARE PROCESSED MORE EFFICIENTLY
 COMPARED TO PUBLIC  BLOCKCHAINS  DUE  TO  THE  PERMISSIONED  NATURE  AND
 STREAMLINED CONSENSUS MECHANISMS; AND
   (III) WHICH ENABLES SECURE COLLABORATION AND DATA SHARING AMONG MULTI-
 PLE  ORGANIZATIONS, FINDING APPLICATIONS IN VARIOUS INDUSTRIES, INCLUDED
 BUT NOT LIMITED TO SUPPLY CHAIN  MANAGEMENT,  HEALTHCARE  AND  FINANCIAL
 SERVICES.
   §  2.  The  public lands law is amended by adding a new section 2-c to
 read as follows:
   § 2-C. CENTRAL DEPOSITORY DATABASE FOR GOVERNMENTAL PROPERTY.  1.  THE
 COMMISSIONER  OF  GENERAL  SERVICES MAY ESTABLISH AND MAINTAIN A CENTRAL
 DEPOSITORY DATABASE FOR GOVERNMENTAL REAL PROPERTY  TO  COMPILE,  STORE,
 MAINTAIN, AND SECURE GOVERNMENT REAL ESTATE RECORDS. SUCH DATABASE SHALL
 PROVIDE  REDUNDANT,  IMMUTABLE, AND PERMISSIONED DATA CONTROLLED THROUGH
 DISTRIBUTED LEDGER TECHNOLOGY, INCREASE EFFICIENCY FOR  STATE  AGENCIES,
 AND CREATE TRANSPARENCY WHILE MAINTAINING PROPER SECURITY.
   2.  THE COMMISSIONER OF GENERAL SERVICES, IN CONJUNCTION WITH RELEVANT
 STATE AGENCIES, MAY CREATE AND IMPLEMENT A STRATEGY TO ADOPT DISTRIBUTED
 LEDGER TECHNOLOGY THAT USES TOKENIZATION AND DIGITALIZATION  WITHIN  THE
 AGENCY  WHEREBY  DATA  IS STORED SECURELY AND PERMANENTLY ON A FEDERATED
 BLOCKCHAIN FOR THE PURPOSE OF PROPERLY SECURING GOVERNMENT  REAL  ESTATE
 RECORDS AND PREVENTING IMPROPER ACCESS TO AND HACKING OF SUCH RECORDS.
   3.  THE  DATA  STORED  IN  SUCH DISTRIBUTED LEDGER TECHNOLOGY SHALL BE
 ACCESSIBLE TO STATE AGENCIES, MUNICIPALITIES, AND TAXPAYERS.
   § 3. Subdivision 12 of section  290  of  the  real  property  law,  as
 amended  by  chapter  549  of  the  laws  of 2011, is amended to read as
 follows:
   12. "DISTRIBUTED LEDGER TECHNOLOGY" SHALL MEAN:
   (A) A TECHNOLOGY DEPLOYED IN A DISTRIBUTED FASHION AND SHARED ACROSS A
 NETWORK THAT, WHEN USED IN  CONJUNCTION  WITH  CRYPTOGRAPHIC  SOLUTIONS,
 ENABLE  AUDITABLE  DATA  SHARING  ACROSS  A NETWORK OF UNTRUSTED PARTIC-
 IPANTS; AND
   (B) A SYSTEM THAT ALLOWS MULTIPLE PARTIES TO SHARE AND UPDATE A COMMON
 DATA SOURCE WITHOUT REQUIRING THE PARTY TO RELY ON ANY SINGLE  PARTY  TO
 MAINTAIN AND VALIDATE THE DATA.
   13.  "TOKENIZATION"  SHALL MEAN THE PROCESS OF CREATING DIGITAL OWNER-
 SHIP OF REAL WORLD ASSETS.
   14. "DIGITALIZATION" SHALL MEAN THE PROCESS OF CONVERTING  INFORMATION
 INTO A DIGITAL FORMAT.
   15. "BLOCKCHAIN" SHALL MEAN ANY TECHNOLOGY WHERE DATA IS:
   (A)  SHARED  ACROSS  A  NETWORK  TO CREATE A PUBLIC LEDGER OF VERIFIED
 TRANSACTIONS OR INFORMATION AMONG PARTICIPANTS;
   (B) LINKED USING CRYPTOGRAPHY TO MAINTAIN THE INTEGRITY OF THE  PUBLIC
 LEDGER AND TO EXECUTE OTHER FUNCTIONS;
   (C)  DISTRIBUTED AMONG NETWORK PARTICIPANTS IN AN AUTOMATED FASHION TO
 CONCURRENTLY UPDATE NETWORK PARTICIPANTS ON  THE  STATE  OF  THE  PUBLIC
 LEDGER AND ANY OTHER FUNCTIONS; AND
   (D) COMPOSED OF SOURCE CODE THAT IS PUBLICLY AVAILABLE.
   16.  "FEDERATED BLOCKCHAIN" SHALL MEAN A DISTRIBUTED LEDGER TECHNOLOGY
 SYSTEM:
   (A) IN WHICH A PRE-SELECTED GROUP OF ENTITIES, RATHER  THAN  A  SINGLE
 ENTITY OR THE GENERAL PUBLIC, IS RESPONSIBLE FOR VALIDATING TRANSACTIONS
 AND MAINTAINING CONSENSUS ON THE STATE OF THE LEDGER;
 A. 10443                            3
 
   (B)  IN  WHICH  CONTROL  AND GOVERNANCE ARE PROCESSED MORE EFFICIENTLY
 COMPARED TO PUBLIC  BLOCKCHAINS  DUE  TO  THE  PERMISSIONED  NATURE  AND
 STREAMLINED CONSENSUS MECHANISMS; AND
   (C) WHICH ENABLES SECURE COLLABORATION AND DATA SHARING AMONG MULTIPLE
 ORGANIZATIONS,  FINDING APPLICATIONS IN VARIOUS INDUSTRIES, INCLUDED BUT
 NOT  LIMITED  TO  SUPPLY  CHAIN  MANAGEMENT,  HEALTHCARE  AND  FINANCIAL
 SERVICES.
   17.  This  article,  WITH THE EXCEPTION OF SECTION TWO HUNDRED NINETY-
 ONE-K OF THIS ARTICLE, does not apply to leases for life  or  lives,  or
 for  years, heretofore made, of lands in either of the counties of Alba-
 ny, Ulster, Sullivan, Herkimer, Dutchess, Columbia, Delaware or Schenec-
 tady.
   § 4. The real property law is amended by adding a new section 291-k to
 read as follows:
   § 291-K. CENTRAL DEPOSITORY DATABASE FOR REAL  PROPERTY  TRANSACTIONS.
 1.    THE OFFICE OF THE CLERK OF THE COUNTY OR CITY REGISTRAR MAY, WHERE
 APPLICABLE, ESTABLISH AND MAINTAIN A  CENTRAL  DEPOSITORY  DATABASE  FOR
 GOVERNMENTAL  REAL PROPERTY TO COMPILE, STORE, MAINTAIN, AND SECURE REAL
 ESTATE RECORDS. SUCH DATABASE SHALL PROVIDE  REDUNDANT,  IMMUTABLE,  AND
 PERMISSIONED  DATA  CONTROLLED  THROUGH  DISTRIBUTED  LEDGER TECHNOLOGY,
 INCREASE EFFICIENCY FOR STATE AGENCIES, AND  CREATE  TRANSPARENCY  WHILE
 MAINTAINING PROPER SECURITY.
   2.  THE OFFICE OF THE CLERK OF THE COUNTY OR CITY REGISTRAR MAY, WHERE
 APPLICABLE, CREATE AND IMPLEMENT A STRATEGY TO ADOPT DISTRIBUTED  LEDGER
 TECHNOLOGY  THAT  USES TOKENIZATION AND DIGITALIZATION WITHIN THE AGENCY
 WHEREBY DATA IS STORED SECURELY AND PERMANENTLY ON  A  FEDERATED  BLOCK-
 CHAIN  FOR  THE  PURPOSE  OF  PROPERLY  SECURING  GOVERNMENT REAL ESTATE
 RECORDS AND PREVENTING IMPROPER ACCESS TO AND HACKING OF SUCH RECORDS.
   § 5. This act shall take effect immediately.