Senate File 541 - Enrolled
Senate File 541
AN ACT
RELATING TO ELECTRONIC TRANSACTIONS BY PERMITTING THE USE
OF DISTRIBUTED LEDGER TECHNOLOGY AND SMART CONTRACTS AND
INCLUDING EFFECTIVE DATE PROVISIONS.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 554D.103, subsections 4, 7, and 8, Code
2 2021, are amended to read as follows:
3 4. “Contract” means the total legal obligation resulting
4 from the parties’ agreement as affected by this chapter and
5 other applicable law. “Contract” includes any contract secured
6 through distributed ledger technology and a smart contract.
7 7. “Electronic record” means a record created, generated,
8 sent, communicated, received, or stored by electronic means.
9 “Electronic record” includes any record secured through
10 distributed ledger technology.
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11 8. “Electronic signature” means an electronic sound, symbol,
12 or process attached to or logically associated with a record
13 and executed or adopted by a person with the intent to sign the
14 record. “Electronic signature” includes a signature that is
15 secured through distributed ledger technology.
16 Sec. 2. Section 554D.103, Code 2021, is amended by adding
17 the following new subsections:
18 NEW SUBSECTION. 4A. “Distributed ledger technology” means
19 an electronic record of transactions or other data to which all
20 of the following apply:
21 a. The electronic record is uniformly ordered.
22 b. The electronic record is redundantly maintained or
23 processed by one or more computers or machines to guarantee the
24 consistency or nonrepudiation of the recorded transactions or
25 other data.
26 NEW SUBSECTION. 14A. “Smart contract” means an event-driven
27 program or computerized transaction protocol that runs on a
28 distributed, decentralized, shared, and replicated ledger
29 that executes the terms of a contract. For purposes of this
30 subsection, “executes the terms of a contract” may include
31 taking custody over and instructing the transfer of assets.
32 Sec. 3. NEW SECTION. 554D.106A Use of distributed ledger
33 technology.
34 A person who, in engaging in or affecting interstate or
35 foreign commerce, uses distributed ledger technology to secure
1 information that the person owns or has the right to use
2 retains the same rights of ownership or use with respect to
3 such information as before the person secured the information
4 using distributed ledger technology. This section does not
5 apply to the use of distributed ledger technology to secure
6 information in connection with a transaction to the extent that
7 the terms of the transaction expressly provide for the transfer
8 of rights of ownership or use with respect to such information.
9 Sec. 4. Section 554D.108, subsection 2, Code 2021, is
10 amended to read as follows:
11 2. A contract shall not be denied legal effect or
12 enforceability solely because an electronic record was used in
13 its formation or because the contract is a smart contract or
14 contains a smart contract provision.
 Senate File 541, p. 3
15 Sec. 5. EFFECTIVE DATE. This Act takes effect January 1,
16 2022.
______________________________ ______________________________
JAKE CHAPMAN PAT GRASSLEY
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 541, Eighty-ninth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2021 ______________________________
KIM REYNOLDS
Governor


Statutes affected:
Introduced: 554D.103
Enrolled: 554D.103