Utah Code 63A-3-112. Digital user asset collection
Current as of: 2024 | Check for updates
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(1) As used in this section:
Terms Used In Utah Code 63A-3-112
- Agency: means a board, commission, institution, department, division, officer, council, office, committee, bureau, or other administrative unit of the state, including the agency head, agency employees, or other persons acting on behalf of or under the authority of the agency head, the Legislature, the courts, or the governor, but does not mean a political subdivision of the state, or any administrative unit of a political subdivision of the state. See Utah Code 63A-1-103
- 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 :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See 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
(1)(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.(1)(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.(1)(c) “Digital asset” means a representation of economic, proprietary, or access rights that is stored in a computer readable format.(1)(d) “Digital security” means a digital asset which constitutes a security, as that term is defined in Section 70A-8-101.(1)(e)(1)(e)(i) “Digital user asset” means a digital asset that is used or bought primarily for consumptive, personal, or household purposes.(1)(e)(ii) “Digital user asset” includes an open blockchain token.(1)(e)(iii) “Digital user asset” does not include a digital security.(1)(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.(1)(g) “Political subdivision” means the same as that term is defined in Section 63G-7-102.(1)(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.(1)(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:
(2)(a) taking the payment in the form of a digital user asset; and
(2)(b) converting the digital user asset into legal tender to pay the agency payment.
(3)
(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.
(3)(b) The division may contract with more than one service provider to provide the service described in Subsection (2).
(3)(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)
(4)(a) The person paying the agency payment bears responsibility for any costs the service provider charges for the service provider’s service.
(4)(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:
(6)(a) establish standards that a person must meet to be eligible to enter into a contract as a service provider; and
(6)(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:
(7)(a) provide a service to collect a political subdivision payment in the form of a digital user asset; and
(7)(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.