Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 118 First Substitute (2024GS)

Sponsor

Rep. Lee, T.

Final action

Governor Signed 3/18/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms; and
• provides protection to a person from being compelled to produce the person's private electronic key that provides access to the person's digital assets, identity, or other interest.

Every vote on this bill

Bill text

PROHIBITION OF PRODUCTION OF PRIVATE KEYS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Trevor Lee
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill provides protection for private personal digital data.
Highlighted Provisions:
This bill:
▸ defines terms; and
▸ provides protection to a person from being compelled to produce the person's
private electronic key that provides access to the person's digital assets, identity, or
other interest. 
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
13-62-101
, as enacted by Laws of Utah 2022, Chapter 448
ENACTS:
13-62-103
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
13-62-101
 is amended to read:
13-62-101.
Definitions.
As used in this chapter:
(1) "Agent" means a person who is authorized to act on behalf of an owner with respect
to a digital asset.
(2) "Control" means:
(a) an owner or an agent has the exclusive legal authority to conduct a transaction
relating to the digital asset, including by means of a private key or the use of a multi-signature
arrangement the owner or agent authorizes; or
(b) a secured party has created a smart contract [
which
] 
that
 gives the secured party
exclusive legal authority to conduct a transaction relating to a digital security.
(3) (a) "Digital asset" means a representation of economic, proprietary, or access rights
that is stored in a computer readable format.
(b) "Digital asset" includes:
(i) a digital user asset; or
(ii) a digital security.
(4) "Digital security" means a digital asset [
which
] 
that
 constitutes a security, as that
term is defined in Section 
70A-8-101
.
(5) (a) "Digital user asset" means a digital asset that is used or bought primarily for
consumptive, personal, or household purposes.
(b) "Digital user asset" includes an open blockchain token.
(c) "Digital user asset" does not include a digital security.
(6) "Multi-signature arrangement" means a system of access control relating to a digital
asset for the purposes of preventing unauthorized transactions relating to the 
digital
 asset, in
which two or more private keys are required to conduct a transaction.
(7) "Private key" means a unique element of cryptographic data[
, which
] 
that
 is:
(a) held by a person;
(b) paired with a [
unique, publicly available element of cryptographic data
] 
public key
;
and
(c) associated with an algorithm that is necessary to carry out an encryption or
decryption required to execute a transaction.
(8) "Public key" means a unique element of cryptographic data that is:
(a) publicly available;
(b) paired with a private key that is held by the owner of the public key; and
(c) associated with an algorithm that is necessary to carry out an encryption or
decryption required to execute a transaction.
[
(8)
] 
(9)
 "Smart contract" means a transaction [
which
] 
that
 is comprised of code, script,
or programming language that executes the terms of an agreement, and which may include
taking custody of and transferring a digital asset, or issuing executable instructions for these
actions, based on the occurrence or nonoccurrence of specified conditions.
Section 2. Section 
13-62-103
 is enacted to read:
 13-62-103.
Protection of private keys.
(1) (a) Except as provided in Subsection (1)(b), a person may not be compelled to
produce a private key, or any components that allow the derivation of a private key, or make a
private key known to any other person in any civil, criminal, administrative, legislative, or
other proceeding in the state that relates to a digital asset, digital identity, or other interest or
right to which the private key provides access.
(b) A person may be compelled in a civil, criminal, administrative, legislative, or other
lawful proceeding in the state to produce a private key if a public key is unavailable or unable
to disclose the information requested to be obtained.
(2) A person may be compelled in a lawful proceeding to:
(a) produce, sell, transfer, convey, or disclose a digital asset, digital identity, or other
interest or right to which a private key provides access; or
(b) disclose information about the digital asset, digital identity, or other interest or
right.
Section 3. 
Effective date.
This bill takes effect on May 1, 2024.