New Jersey's 21st Legislative District

Senator Tom Kean, Jr.

Senator Tom Kean

Kean Bill to Establish Taskforce to Modernize Govt. Systems & Protect Electronic Data Passes Committee

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The Senate State Government Committee has passed legislation sponsored by Senate Republican Leader Tom Kean that would establish the “NJ Blockchain Initiative Task Force.”

The task force established under Sen. Kean’s bipartisan bill would be charged with developing new strategies to increase the efficiency of electronic communication.

Sen. Tom Kean’s bipartisan bill would be charged with developing new strategies to increase the efficiency of electronic communication. (SenateNJ.com)

“The primary goal of this legislation is to find a cost-effective way to build a tamper-proof system, so we can protect and improve electronic communication at a wide range of agencies,” Senator Kean added. “Imagine being able to submit your tax return or business application to the state quickly and efficiently, all while keeping your personal data secure. That is what Blockchain can offer. I hope to see our bill become law as soon as possible.”

Senator Kean’s legislation, S-2297, would establish a task force that would be charged with studying if State or local governments can benefit from a transition to a Blockchain-based system for recordkeeping and service delivery.

A similar Blockchain initiative has already been established in Illinois.

Under the bill, the task force would take a practical look at whether Blockchain offers government better, safer, trustworthy avenues by which to improve New Jersey citizens’ relationships and interactions with government.

S-2297 would also require the task force to issue a report of their findings to the Governor and Legislature.

Blockchain is a type of distributed ledger or decentralized database that keeps records of digital transactions.

Rather than having a central administrator, such as a traditional bank, government body, or accountant monitor a network; a distributed ledger has a network of replicated databases, which are synchronized via the Internet and visible to anyone within the network.

Kean noted that Blockchain has evolved tremendously since its initial platform for Bitcoin digital currency. He explained that its real-world practical applications are already being used by large corporations to preserve health data, execute smart contracts in the finance sector, and even trace food to prevent contamination.

“New Jersey must lean forward and look ahead when it comes to technology,” Kean added. “Investing in Blockchain is an investment in New Jersey’s future.”

A copy of Sen. Tom Kean’s legislation, S-2297, can be found here.

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