Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 456 Third Substitute (2022GS)

Sponsor

Rep. Teuscher, J.

Final action

Governor Signed 3/24/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• requires the Division of Finance to contract with a third party to accept payments to participating government agencies in the form of digital assets;
• authorizes the Division of Finance to contract with a third party to accept payments to political subdivisions in the form of digital assets;
• gives the division rulemaking authority to determine standards a third party must meet to provide the payment service; and
• describes the assignment of liability with respect to aspects of providing this payment service.

Every vote on this bill

Bill text

DIGITAL USER ASSET PAYMENT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jordan D. Teuscher
Senate Sponsor: 
Kirk A. Cullimore
LONG TITLE
General Description:
This bill makes provisions related to the use of digital user assets to make payments to
participating government agencies and political subdivisions.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ requires the Division of Finance to contract with a third party to accept payments to
participating government agencies in the form of digital assets;
▸ authorizes the Division of Finance to contract with a third party to accept payments
to political subdivisions in the form of digital assets;
▸ gives the division rulemaking authority to determine standards a third party must
meet to provide the payment service; and
▸ describes the assignment of liability with respect to aspects of providing this
payment service.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
ENACTS:
63A-3-112
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63A-3-112
 is enacted to read:
 63A-3-112.
Digital user asset collection.
(1) As used in this section:
(a) "Agency" means a state government entity that receives payments for services or
fees and is eligible to enter into a contract for payment services with the division.
(b) "Agency payment" means a payment that is due directly to an agency and that the
agency collects either directly or through a third-party payment processor with whom the
division has a contract.
(c) "Digital asset" means a representation of economic, proprietary, or access rights
that is stored in a computer readable format.
(d) "Digital security" means a digital asset which constitutes a security, as that term is
defined in Section 
70A-8-101
.
(e) (i) "Digital user asset" means a digital asset that is used or bought primarily for
consumptive, personal, or household purposes.
(ii) "Digital user asset" includes an open blockchain token.
(iii) "Digital user asset" does not include a digital security.
(f) "Participating agency" means an agency that meets the division's requirements to
accept payments made through a service provider with whom the division has a contract.
(g) "Political subdivision" means the same as that term is defined in Section
63G-7-102
.
(h) "Political subdivision payment" means a payment that is due directly to a political
subdivision and that the political subdivision collects either directly or through a third-party
payment processor with whom the political subdivision has a contract.
(i) "Service provider" means a person with demonstrated experience exchanging digital
user assets for legal tender.
(2) The division shall contract with a service provider to provide a service to process
an agency payment for a participating agency by:
(a) taking the payment in the form of a digital user asset; and
(b) converting the digital user asset into legal tender to pay the agency payment.
(3) (a) When contracting with a service provider to provide the service described in
Subsection (2), the division has discretion to choose a service provider that can only provide
the exchange service for a limited class or type of digital user asset.
(b) The division may contract with more than one service provider to provide the
service described in Subsection (2).
(c) Nothing in this section shall be interpreted to require the division to provide the
service described in Subsection (2) for all types of digital user assets.
(4) (a) The person paying the agency payment bears responsibility for any costs the
service provider charges for the service provider's service.
(b) The division may collect a fee established in accordance with the procedures and
requirements of Section 
63J-1-504
 to cover the costs to the division of providing the service
described in Subsection (2).
(5) The division shall contract to provide the service described in Subsection (2) on or
before January 1, 2023.
(6) The division shall, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, make rules to:
(a) establish standards that a person must meet to be eligible to enter into a contract as
a service provider; and
(b) establish requirements an agency must meet to be a participating agency.
(7) A political subdivision may enter into an agreement with the division for the
division to contract with a service provider to, on behalf of the political subdivision:
(a) provide a service to collect a political subdivision payment in the form of a digital
user asset; and
(b) convert the digital user asset into legal tender to pay the political subdivision
payment.
(8) Nothing in this section shall be interpreted to impose liability upon the person
paying the agency payment or a participating agency for a change in value of the digital user
asset after the moment of payment to the service provider.
Section 2. 
Effective date.
This bill takes effect on July 1, 2022.