Utah 2025 Regular Session

Utah House Bill HB0230 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy H.B. 230
	1	+	03-07 15:21 3rd Sub. (Cherry) H.B. 230
	2	+	Kirk A. Cullimore proposes the following substitute bill:
2	3		1
3	4		Blockchain and Digital Innovation Amendments
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: Jordan D. Teuscher
7	8		Senate Sponsor: Kirk A. Cullimore
8		-
9		-	Cosponsor: Ken Ivory David Shallenberger
10		-
11		-	Kay J. Christofferson Trevor Lee Troy Shelley
12		-
13		-	Tyler Clancy Matt MacPherson Lisa Shepherd
14		-
15		-	Paul A. Cutler Verona Mauga Rex P. Shipp
16		-
17		-	Jennifer Dailey-Provost Logan J. Monson Andrew Stoddard
18		-
19		-	Doug Fiefia Jefferson Moss Jason E. Thompson
20		-
21		-	Stephanie Gricius Angela Romero Raymond P. Ward
22	9		2
23	10
24	11		3
25	12		LONG TITLE
26	13		4
27	14		General Description:
28	15		5
29	16		This bill creates authority for the state treasurer to invest public funds in certain digital
30	17		6
31	18		assets.
32	19		7
33	20		Highlighted Provisions:
34	21		8
35	22		This bill:
36	23		9
37	24		▸ defines terms;
38	25		10
39	26		▸ prohibits state and local governmental entities from restricting the acceptance or custody
40	27		11
41	28		of digital assets;
42	29		12
43	30		▸ establishes the right to operate nodes, develop software, transfer digital assets, and
44	31		13
45	32		participate in staking on blockchain protocols;
46	33		14
47	34		▸ creates exemptions from money transmitter licensing requirements for certain blockchain
48	35		15
49	36		and digital asset activities;
50	37		16
51	38		▸ restricts the ability of political subdivisions to impose sound limitations or zoning
52	39		17
53	40		restrictions on digital asset mining businesses in industrial zones; and
54	41		18
55		-	▸ makes technical and conforming changes. ~~H.B. 230 Enrolled Copy~~
	42	+	▸ makes technical and conforming changes.
56	43		19
57	44		Money Appropriated in this Bill:
58	45		20
59	46		None
60	47		21
61	48		Other Special Clauses:
62	49		22
63	50		None
64	51		23
65	52		Utah Code Sections Affected:
66	53		24
67	54		ENACTS:
68	55		25
69	56		7-28-101, Utah Code Annotated 1953
70	57		26
71	58		7-28-102, Utah Code Annotated 1953
72	59		27
73	60		7-28-103, Utah Code Annotated 1953
74	61		28
75	62		7-28-104, Utah Code Annotated 1953
	63	+	3rd Sub. H.B. 230 3rd Sub. (Cherry) H.B. 230 03-07 15:21
76	64		29
77	65		10-9a-541, Utah Code Annotated 1953
78	66		30
79	67		17-27a-536, Utah Code Annotated 1953
80	68		31
81	69
82	70		32
83	71		Be it enacted by the Legislature of the state of Utah:
84	72		33
85	73		Section 1. Section 7-28-101 is enacted to read:
86	74		34
87	75		7-28-101 . Definitions.
88	76		35
89	77		As used in this chapter:
90	78		36
91	79		(1) "Blockchain protocol" means any executable software deployed to enable the transfer of
92	80		37
93	81		data and electronic records through a distributed network of nodes, including an
94	82		38
95	83		additional standardized set of rules that uses a previously existing blockchain as a base.
96	84		39
97	85		(2) "Digital asset" means:
98	86		40
99	87		(a) virtual currency;
100	88		41
101	89		(b) cryptocurrency;
102	90		42
103	91		(c) natively electronic assets, including:
104	92		43
105	93		(i) stablecoins; and
106	94		44
107	95		(ii) non-fungible tokens; or
108	96		45
109	97		(d) other digital-only assets that confer economic, proprietary, or access rights or powers.
110	98		46
111	99		(3) "Hardware wallet" means a physical device that:
112	100		47
113	101		(a) is not continuously connected to the Internet;
114	102		48
115	103		(b) allows an individual to secure and transfer digital assets; and
116	104		49
117	105		(c) enables the owner of digital assets to retain independent control over the digital
118	106		50
119	107		assets.
120	108		51
121	109		Section 2. Section 7-28-102 is enacted to read:
122	110		52
123	111		7-28-102 . Permitted uses of digital assets.
124		-	- 2 - Enrolled Copy H.B. 230
125	112		53
126	113		A state or local governmental entity may not prohibit, restrict, or impair a person's
127	114		54
128	115		ability to:
129	116		55
130	117		(1) accept digital assets as a method of payment for legal goods and services; or
131	118		56
132	119		(2) take custody of digital assets using:
133	120		57
134	121		(a) a self-hosted wallet; or
135	122		58
136	123		(b) a hardware wallet.
137	124		59
138	125		Section 3. Section 7-28-103 is enacted to read:
139	126		60
140	127		7-28-103 . Access to blockchain protocols and transfer of digital assets.
141	128		61
142	129		A person may:
143	130		62
144	131		(1) operate a node for the purpose of:
	132	+	- 2 - 03-07 15:21 3rd Sub. (Cherry) H.B. 230
145	133		63
146	134		(a) connecting to a blockchain protocol; and
147	135		64
148	136		(b) participating in the blockchain protocol's operations;
149	137		65
150	138		(2) develop software on a blockchain protocol;
151	139		66
152	140		(3) transfer digital assets to another individual or business utilizing a blockchain protocol; or
153	141		67
154	142		(4) participate in staking on a blockchain protocol.
155	143		68
156	144		Section 4. Section 7-28-104 is enacted to read:
157	145		69
158	146		7-28-104 . Exemption from money transmission license.
159	147		70
160	148		The following activities do not require an individual or business to obtain a money
161	149		71
162	150		transmitter license under Title 7, Chapter 25, Money Transmitter Act:
163	151		72
164	152		(1) operating one or more nodes on a blockchain protocol;
165	153		73
166	154		(2) developing software on a blockchain protocol; or
167	155		74
168	156		(3) operating a business or decentralized protocol that:
169	157		75
170	158		(a) effectuates the exchange of one digital asset for another digital asset; and
171	159		76
172	160		(b) does not exchange digital assets for legal tender or bank deposits.
173	161		77
174	162		Section 5. Section 10-9a-541 is enacted to read:
175	163		78
176	164		10-9a-541 . Digital asset mining -- Zoning restrictions.
177	165		79
178	166		(1) As used in this section:
179	167		80
180	168		(a) "Digital asset" means the same as that term is defined in Section 7-28-101.
181	169		81
182	170		(b) "Digital asset mining" means using computer hardware and software specifically
183	171		82
184	172		designed or utilized for validating data and securing a blockchain network.
185	173		83
186	174		(c) "Digital asset mining business" means a group of computers working at a single site
187	175		84
188	176		that:
189	177		85
190	178		(i) consumes more than one megawatt of energy on an average annual basis; and
191	179		86
192	180		(ii) operates for the purpose of generating blockchain tokens by securing a
193		-	- 3 - H.B. 230 Enrolled Copy
194	181		87
195	182		blockchain network.
196	183		88
197	184		(2) A political subdivision of the state may not enact an ordinance, resolution, or rule that:
198	185		89
199	186		(a) for digital asset mining businesses located in areas zoned for industrial use, imposes
200	187		90
201	188		sound restrictions on digital asset mining businesses that are more stringent than the
202	189		91
203	190		generally applicable limits set for industrial-zoned areas; or
204	191		92
205	192		(b) prevents a digital asset mining business from operating in an area zoned for
206	193		93
207	194		industrial use if the digital asset mining business meets other requirements for
208	195		94
209	196		industrial use.
210	197		95
211	198		Section 6. Section 17-27a-536 is enacted to read:
212	199		96
213	200		17-27a-536 . Digital asset mining -- Zoning restrictions.
	201	+	- 3 - 3rd Sub. (Cherry) H.B. 230 03-07 15:21
214	202		97
215	203		(1) As used in this section:
216	204		98
217	205		(a) "Digital asset" means the same as that term is defined in Section 7-28-101.
218	206		99
219	207		(b) "Digital asset mining" means using computer hardware and software specifically
220	208		100
221	209		designed or utilized for validating data and securing a blockchain network.
222	210		101
223	211		(c) "Digital asset mining business" means a group of computers working at a single site
224	212		102
225	213		that:
226	214		103
227	215		(i) consumes more than one megawatt of energy on an average annual basis; and
228	216		104
229	217		(ii) operates for the purpose of generating blockchain tokens by securing a
230	218		105
231	219		blockchain network.
232	220		106
233	221		(2) A political subdivision of the state may not enact an ordinance, resolution, or rule that:
234	222		107
235	223		(a) for digital asset mining businesses located in areas zoned for industrial use, imposes
236	224		108
237	225		sound restrictions on digital asset mining businesses that are more stringent than the
238	226		109
239	227		generally applicable limits set for industrial-zoned areas; or
240	228		110
241	229		(b) prevents a digital asset mining business from operating in an area zoned for
242	230		111
243	231		industrial use if the digital asset mining business meets other requirements for
244	232		112
245	233		industrial use.
246	234		113
247	235		Section 7. Effective Date.
248	236		114
249	237		This bill takes effect on May 7, 2025.
250	238		- 4 -