The bill HB 645-FN sets out to establish a legal framework for Decentralized Autonomous Organizations (DAOs) in New Hampshire, recognizing them as unique legal entities capable of conducting commercial, social, educational, mutualistic, or charitable activities. The bill defines a comprehensive list of terms associated with DAOs, such as "administrator," "blockchain," and "smart contract," and emphasizes the principle that the intent of code is law. It outlines the conditions for DAOs to operate, including the absence of unilateral control over the blockchain system and the distribution of digital asset ownership. The bill also specifies that DAOs have perpetual existence unless otherwise stated in their bylaws and are not considered partnerships. It details the process for winding up DAO affairs upon dissolution and allows DAOs to sue and be sued, with service of process upon its registered agent or legal representative.

Furthermore, the bill requires DAOs to maintain a registered office and agent in New Hampshire, with changes to be filed with the Secretary of State. It clarifies that DAOs are responsible for their own debts and liabilities, and participants or administrators are not personally liable solely by virtue of their association with the DAO, except under certain conditions. The bill also outlines the process for registering as a New Hampshire DAO, including filing a notice of intent and paying a filing fee. It establishes a New Hampshire DAO registry, maintained by a registry administrator, which will list DAOs that meet specific requirements, such as being deployed on a permissionless blockchain and maintaining open-source software code. The bill also addresses DAO bylaws, roles and responsibilities of participants, administrators, and legal representatives, and the conditions under which the attorney general may apply for the deregistration of a DAO. It includes provisions for contentious forks, DAO restructuring, and the maintenance of legal protections in the event of a failure. The bill's provisions regarding the DAO registry take effect upon passage, while the remainder will be effective from July 1, 2025.