63A-3-112. Digital user asset collection.
| (1) |
As used in this section:
Terms Used In Utah Code 63A-3-112- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- Legal tender: coins, dollar bills, or other currency issued by a government as official money. Source: U.S. Mint
- Person: means :Utah Code 68-3-12.5
- Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
| (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. |
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| (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. |
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| (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. |
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| (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. |
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| (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. |
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| (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. |
Enacted by Chapter 405, 2022 General Session
