Enrolled Copy H.B. 118
1 PROHIBITION OF PRODUCTION OF PRIVATE KEYS
2024 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Trevor Lee Senate Sponsor: Kirk A. Cullimore
2
3 LONG TITLE
4 General Description:
5 This bill provides protection for private personal digital data.
6 Highlighted Provisions:
7 This bill:
8 ▸ defines terms; and
9 ▸ provides protection to a person from being compelled to produce the person's private
10 electronic key that provides access to the person's digital assets, identity, or other interest.
11 Money Appropriated in this Bill:
12 None
13 Other Special Clauses:
14 None
15 Utah Code Sections Affected:
16 AMENDS:
17 13-62-101, as enacted by Laws of Utah 2022, Chapter 448
18 ENACTS:
19 13-62-103, as Utah Code Annotated 1953
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21 Be it enacted by the Legislature of the state of Utah:
22 Section 1. Section 13-62-101 is amended to read:
23 13-62-101 . Definitions.
24 As used in this chapter:
25 (1) "Agent" means a person who is authorized to act on behalf of an owner with respect to a
26 digital asset.
27 (2) "Control" means:
28 (a) an owner or an agent has the exclusive legal authority to conduct a transaction
H.B. 118 Enrolled Copy
29 relating to the digital asset, including by means of a private key or the use of a
30 multi-signature arrangement the owner or agent authorizes; or
31 (b) a secured party has created a smart contract [which] that gives the secured party
32 exclusive legal authority to conduct a transaction relating to a digital security.
33 (3) (a) "Digital asset" means a representation of economic, proprietary, or access rights
34 that is stored in a computer readable format.
35 (b) "Digital asset" includes:
36 (i) a digital user asset; or
37 (ii) a digital security.
38 (4) "Digital security" means a digital asset [which] that constitutes a security, as that term is
39 defined in Section 70A-8-101.
40 (5) (a) "Digital user asset" means a digital asset that is used or bought primarily for
41 consumptive, personal, or household purposes.
42 (b) "Digital user asset" includes an open blockchain token.
43 (c) "Digital user asset" does not include a digital security.
44 (6) "Multi-signature arrangement" means a system of access control relating to a digital
45 asset for the purposes of preventing unauthorized transactions relating to the digital
46 asset, in which two or more private keys are required to conduct a transaction.
47 (7) "Private key" means a unique element of cryptographic data[, which] that is:
48 (a) held by a person;
49 (b) paired with a [unique, publicly available element of cryptographic data] public key;
50 and
51 (c) [associated with an algorithm that is necessary to carry out an encryption or
52 decryption required to execute a transaction.] used to digitally sign a transaction.
53 (8) "Public key" means a unique element of cryptographic data that:
54 (a) is publicly available;
55 (b) is paired with a private key that is held by the owner of the public key; and
56 (c) allows viewing, but not digitally signing, electronic transactions.
57 [(8)] (9) "Smart contract" means a transaction [which] that is comprised of code, script, or
58 programming language that executes the terms of an agreement, and which may include
59 taking custody of and transferring a digital asset, or issuing executable instructions for
60 these actions, based on the occurrence or nonoccurrence of specified conditions.
61 Section 2. Section 13-62-103 is enacted to read:
62 13-62-103 . Protection of private keys.
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Enrolled Copy H.B. 118
63 (1) (a) Except as provided in Subsection (1)(b), a person may not be compelled to
64 produce a private key, or any components that allow the derivation of a private key,
65 or make a private key known to any other person in any civil, criminal,
66 administrative, legislative, or other proceeding in the state that relates to a digital
67 asset, digital identity, or other interest or right to which the private key provides
68 access.
69 (b) A person may be compelled in a civil, criminal, administrative, legislative, or other
70 lawful proceeding in the state to produce a private key if a public key is unavailable
71 or unable to disclose the information requested to be obtained.
72 (2) A person may be compelled by court order to:
73 (a) produce, sell, transfer, convey, or disclose a digital asset, digital identity, or other
74 interest or right to which a private key provides access; or
75 (b) disclose information about the digital asset, digital identity, or other interest or right.
76 Section 3. Effective date.
77 This bill takes effect on May 1, 2024.
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Statutes affected: Introduced: 13-62-101
Enrolled: 13-62-101
H.B. 118 1st Substitute (Not Adopted) Text: 13-62-101