Florida Senate - 2016 CS for SB 494 By the Committee on Judiciary; and Senator Hukill 590-01329-16 2016494c1 1 A bill to be entitled 2 An act relating to digital assets; providing a 3 directive to the Division of Law Revision and 4 Information; creating s. 740.001, F.S.; providing a 5 short title; creating s. 740.002, F.S.; defining 6 terms; creating s. 740.003, F.S.; authorizing a user 7 to use an online tool to allow a custodian to disclose 8 or to prohibit a custodian from disclosing digital 9 assets under certain circumstances; providing that 10 specified user’s direction overrides a contrary 11 provision in a terms-of-service agreement under 12 certain circumstances; creating s. 740.004, F.S.; 13 providing construction; authorizing the modification 14 of a fiduciary’s assets under certain circumstances; 15 creating s. 740.005, F.S.; providing procedures for 16 the disclosure of digital assets; creating s. 740.006, 17 F.S.; requiring a custodian to disclose the content of 18 electronic communications of a deceased user under 19 certain circumstances; creating s. 740.007, F.S.; 20 requiring a custodian to disclose other digital assets 21 of a deceased user under certain circumstances; 22 creating s. 740.008, F.S.; requiring a custodian to 23 disclose the content of electronic communications of a 24 principal under certain circumstances; creating s. 25 740.009, F.S.; requiring a custodian to disclose other 26 digital assets of a principal under certain 27 circumstances; creating s. 740.01, F.S.; requiring a 28 custodian to disclose to a trustee who is the original 29 user the digital assets held in trust under certain 30 circumstances; creating s. 740.02, F.S.; requiring a 31 custodian to disclose to a trustee who is not the 32 original user the content of electronic communications 33 held in trust under certain circumstances; creating s. 34 740.03, F.S.; requiring a custodian to disclose to a 35 trustee who is not the original user other digital 36 assets under certain circumstances; creating s. 37 740.04, F.S.; authorizing the court to grant a 38 guardian the right to access a ward’s digital assets 39 under certain circumstances; requiring a custodian to 40 disclose to a guardian a specified catalog of 41 electronic communications and specified digital assets 42 of a ward under certain circumstances; creating s. 43 740.05, F.S.; imposing fiduciary duties; providing for 44 the rights and responsibilities of certain 45 fiduciaries; creating s. 740.06, F.S.; requiring 46 compliance of a custodian; providing construction; 47 providing for immunity from liability for a custodian 48 and its officers, employees, and agents acting in good 49 faith in complying with their duties; creating s. 50 740.07, F.S.; providing construction; creating s. 51 740.08, F.S.; providing applicability; creating s. 52 740.09, F.S.; providing severability; providing an 53 effective date. 54 55 Be It Enacted by the Legislature of the State of Florida: 56 57 Section 1. The Division of Law Revision and Information is 58 directed to create chapter 740, Florida Statutes, consisting of 59 ss. 740.001-740.09, Florida Statutes, to be entitled “Fiduciary 60 Access to Digital Assets.” 61 Section 2. Section 740.001, Florida Statutes, is created to 62 read: 63 740.001 Short title.—This chapter may be cited as the 64 “Florida Fiduciary Access to Digital Assets Act.” 65 Section 3. Section 740.002, Florida Statutes, is created to 66 read: 67 740.002 Definitions.—As used in this chapter, the term: 68 (1) “Account” means an arrangement under a terms-of-service 69 agreement in which the custodian carries, maintains, processes, 70 receives, or stores a digital asset of the user or provides 71 goods or services to the user. 72 (2) “Agent” means a person that is granted authority to act 73 for a principal under a durable or nondurable power of attorney, 74 whether denominated an agent, an attorney in fact, or otherwise. 75 The term includes an original agent, a co-agent, and a successor 76 agent. 77 (3) “Carries” means to engage in the transmission of 78 electronic communications. 79 (4) “Catalog of electronic communications” means 80 information that identifies each person with which a user has 81 had an electronic communication, the time and date of the 82 communication, and the electronic address of the person. 83 (5) “Content of an electronic communication” means 84 information concerning the substance or meaning of the 85 communication which: 86 (a) Has been sent or received by a user; 87 (b) Is in electronic storage by a custodian providing an 88 electronic communication service to the public or is carried or 89 maintained by a custodian providing a remote computing service 90 to the public; and 91 (c) Is not readily accessible to the public. 92 (6) “Court” means a circuit court of this state. 93 (7) “Custodian” means a person that carries, maintains, 94 processes, receives, or stores a digital asset of a user. 95 (8) “Designated recipient” means a person chosen by a user 96 through an online tool to administer digital assets of the user. 97 (9) “Digital asset” means an electronic record in which an 98 individual has a right or interest. The term does not include an 99 underlying asset or liability unless the asset or liability is 100 itself an electronic record. 101 (10) “Electronic” means relating to technology having 102 electrical, digital, magnetic, wireless, optical, 103 electromagnetic, or similar capabilities. 104 (11) “Electronic communication” has the same meaning as 105 provided in 18 U.S.C. s. 2510(12). 106 (12) “Electronic communication service” means a custodian 107 that provides to a user the ability to send or receive an 108 electronic communication. 109 (13) “Fiduciary” means an original, additional, or 110 successor personal representative, guardian, agent, or trustee. 111 (14) “Guardian” means a person who is appointed by the 112 court as guardian of the property of a minor or an incapacitated 113 individual. The term includes an original guardian, a co 114 guardian, and a successor guardian, as well as a person 115 appointed by the court as an emergency temporary guardian of the 116 property. 117 (15) “Information” means data, text, images, videos, 118 sounds, codes, computer programs, software, databases, or the 119 like. 120 (16) “Online tool” means an electronic service provided by 121 a custodian which allows the user, in an agreement distinct from 122 the terms-of-service agreement between the custodian and user, 123 to provide directions for disclosure or nondisclosure of digital 124 assets to a third person. 125 (17) “Person” means an individual, estate, trust, business 126 or nonprofit entity, public corporation, government or 127 governmental subdivision, agency, or instrumentality, or other 128 legal entity. 129 (18) “Personal representative” means the fiduciary 130 appointed by the court to administer the estate of a deceased 131 individual pursuant to letters of administration or an order 132 appointing a curator or administrator ad litem for the estate. 133 The term includes an original personal representative, a 134 copersonal representative, and a successor personal 135 representative, as well as a person who is entitled to receive 136 and collect a deceased individual’s property pursuant to an 137 order of summary administration issued pursuant to chapter 735. 138 (19) “Power of attorney” means a record that grants an 139 agent authority to act in the place of a principal pursuant to 140 chapter 709. 141 (20) “Principal” means an individual who grants authority 142 to an agent in a power of attorney. 143 (21) “Record” means information that is inscribed on a 144 tangible medium or that is stored in an electronic or other 145 medium and is retrievable in perceivable form. 146 (22) “Remote computing service” means a custodian that 147 provides to a user computer processing services or the storage 148 of digital assets by means of an electronic communications 149 system as defined in 18 U.S.C. s. 2510(14). 150 (23) “Termsofservice agreement” means an agreement that 151 controls the relationship between a user and a custodian. 152 (24) “Trustee” means a fiduciary that holds legal title to 153 property under an agreement, declaration, or trust instrument 154 that creates a beneficial interest in the settlor or other 155 persons. The term includes an original trustee, a cotrustee, and 156 a successor trustee. 157 (25) “User” means a person that has an account with a 158 custodian. 159 (26) “Ward” means an individual for whom a guardian has 160 been appointed. 161 (27) “Will” means an instrument admitted to probate, 162 including a codicil, executed by an individual in the manner 163 prescribed by the Florida Probate Code, which disposes of the 164 individual’s property on or after his or her death. The term 165 includes an instrument that merely appoints a personal 166 representative or revokes or revises another will. 167 Section 4. Section 740.003, Florida Statutes, is created to 168 read: 169 740.003 User direction for disclosure of digital assets.— 170 (1) A user may use an online tool to direct the custodian 171 to disclose or not to disclose some or all of the user’s digital 172 assets, including the content of electronic communications. If 173 the online tool allows the user to modify or delete a direction 174 at all times, a direction regarding disclosure using an online 175 tool overrides a contrary direction by the user in a will, 176 trust, power of attorney, or other record. 177 (2) If a user has not used an online tool to give direction 178 under subsection (1) or if the custodian has not provided an 179 online tool, the user may allow or prohibit disclosure to a 180 fiduciary of some or all of the user’s digital assets, including 181 the content of electronic communications sent or received by the 182 user, in a will, trust, power of attorney, or other record. 183 (3) A user’s direction under subsection (1) or subsection 184 (2) overrides a contrary provision in a terms-of-service 185 agreement that does not require the user to act affirmatively 186 and distinctly from the user’s assent to the terms of service. 187 Section 5. Section 740.004, Florida Statutes, is created to 188 read: 189 740.004 Terms-of-service agreement preserved.— 190 (1) This chapter does not change or impair a right of a 191 custodian or a user under a terms-of-service agreement to access 192 and use the digital assets of the user. 193 (2) This chapter does not give a fiduciary any new or 194 expanded rights other than those held by the user for whom, or 195 for whose estate or trust, the fiduciary acts or represents. 196 (3) A fiduciary’s access to digital assets may be modified 197 or eliminated by a user, by federal law, or by a terms-of 198 service agreement if the user has not provided direction under 199 s. 740.003. 200 Section 6. Section 740.005, Florida Statutes, is created to 201 read: 202 740.005 Procedure for disclosing digital assets.— 203 (1) When disclosing the digital assets of a user under this 204 chapter, the custodian may, at its sole discretion: 205 (a) Grant a fiduciary or designated recipient full access 206 to the user’s account; 207 (b) Grant a fiduciary or designated recipient partial 208 access to the user’s account sufficient to perform the tasks 209 with which the fiduciary or designated recipient is charged; or 210 (c) Provide a fiduciary or designated recipient a copy in a 211 record of any digital asset that, on the date the custodian 212 received the request for disclosure, the user could have 213 accessed if the user were alive and had full capacity and access 214 to the account. 215 (2) A custodian may assess a reasonable administrative 216 charge for the cost of disclosing digital assets under this 217 chapter. 218 (3) A custodian is not required to disclose under this 219 chapter a digital asset deleted by a user. 220 (4) If a user directs or a fiduciary requests a custodian 221 to disclose under this chapter some, but not all, of the user’s 222 digital assets to the fiduciary or a designated recipient, the 223 custodian is not required to disclose the assets if segregation 224 of the assets would impose an undue burden on the custodian. If 225 the custodian believes the direction or request imposes an undue 226 burden, the custodian or the fiduciary may seek an order from 227 the court to disclose: 228 (a) A subset limited by date of the user’s digital assets; 229 (b) All of the user’s digital assets to the fiduciary or 230 designated recipient, or to the court for review in chambers; or 231 (c) None of the user’s digital assets. 232 Section 7. Section 740.006, Florida Statutes, is created to 233 read: 234 740.006 Disclosure of content of electronic communications 235 of deceased user.—If a deceased user consented to or a court 236 directs the disclosure of the content of electronic 237 communications of the user, the custodian shall disclose to the 238 personal representative of the estate of the user the content of 239 an electronic communication sent or received by the user if the 240 personal representative gives to the custodian: 241 (1) A written request for disclosure which is in physical 242 or electronic form; 243 (2) A certified copy of the death certificate of the user; 244 (3) A certified copy of the letters of administration, the 245 order authorizing a curator or administrator ad litem, the order 246 of summary administration issued pursuant to chapter 735, or 247 other court order; 248 (4) Unless the user provided direction using an online 249 tool, a copy of the user’s will, trust, power of attorney, or 250 other record evidencing the user’s consent to disclosure of the 251 content of electronic communications; and 252 (5) If requested by the custodian: 253 (a) A number, username, address, or other unique subscriber 254 or account identifier assigned by the custodian to identify the 255 user’s account; 256 (b) Evidence linking the account to the user; or 257 (c) A finding by the court that: 258 1. The user had a specific account with the custodian, 259 identifiable by information specified in paragraph (a); 260 2. Disclosure of the content of electronic communications 261 of the user would not violate 18 U.S.C. s. 2701 et seq., 47 262 U.S.C. s. 222, or other applicable law; 263 3. Unless the user provided direction using an online tool, 264 the user consented to disclosure of the content of electronic 265 communications; or 266 4. Disclosure of the content of electronic communications 267 of the user is reasonably necessary for the administration of 268 the estate. 269 Section 8. Section 740.007, Florida Statutes, is created to 270 read: 271 740.007 Disclosure of other digital assets of deceased 272 user.—Unless a user prohibited disclosure of digital assets or 273 the court directs otherwise, a custodian shall disclose to the 274 personal representative of the estate of a deceased user a 275 catalog of electronic communications sent or received by the 276 user and digital assets of the user, except the content of 277 electronic communications, if the personal representative gives 278 to the custodian: 279 (1) A written request for disclosure which is in physical 280 or electronic form; 281 (2) A certified copy of the death certificate of the user; 282 (3) A certified copy of the letters of administration, the 283 order authorizing a curator or administrator ad litem, the order 284 of summary administration issued pursuant to chapter 735, or 285 other court order; and 286 (4) If requested by the custodian: 287 (a) A number, username, address, or other unique subscriber 288 or account identifier assigned by the custodian to identify the 289 user’s account; 290 (b) Evidence linking the account to the user; 291 (c) An affidavit stating that disclosure of the user’s 292 digital assets is reasonably necessary for the administration of 293 the estate; or 294 (d) An order of the court finding that: 295 1. The user had a specific account with the custodian, 296 identifiable by information specified in paragraph (a); or 297 2. Disclosure of the user’s digital assets is reasonably 298 necessary for the administration of the estate. 299 Section 9. Section 740.008, Florida Statutes, is created to 300 read: 301 740.008 Disclosure of content of electronic communications 302 of principal.—To the extent a power of attorney expressly grants 303 an agent authority over the content of electronic communications 304 sent or received by the principal and unless directed otherwise 305 by the principal or the court, a custodian shall disclose to the 306 agent the content if the agent gives to the custodian: 307 (1) A written request for disclosure which is in physical 308 or electronic form; 309 (2) An original or copy of the power of attorney expressly 310 granting the agent authority over the content of electronic 311 communications of the principal; 312 (3) A certification by the agent, under penalty of perjury, 313 that the power of attorney is in effect; and 314 (4) If requested by the custodian: 315 (a) A number, username, address, or other unique subscriber 316 or account identifier assigned by the custodian to identify the 317 principal’s account; or 318 (b) Evidence linking the account to the principal. 319 Section 10. Section 740.009, Florida Statutes, is created 320 to read: 321 740.009 Disclosure of other digital assets of principal. 322 Unless otherwise ordered by the court, directed by the 323 principal, or provided by a power of attorney, a custodian shall 324 disclose to an agent with specific authority over the digital 325 assets or with general authority to act on behalf of the 326 principal a catalog of electronic communications sent or 327 received by the principal, and digital assets of the principal, 328 except the content of electronic communications, if the agent 329 gives the custodian: 330 (1) A written request for disclosure which is in physical 331 or electronic form; 332 (2) An original or a copy of the power of attorney which 333 gives the agent specific authority over digital assets or 334 general authority to act on behalf of the principal; 335 (3) A certification by the agent, under penalty of perjury, 336 that the power of attorney is in effect; and 337 (4) If requested by the custodian: 338 (a) A number, username, address, or other unique subscriber 339 or account identifier assigned by the custodian to identify the 340 principal’s account; or 341 (b) Evidence linking the account to the principal. 342 Section 11. Section 740.01, Florida Statutes, is created to 343 read: 344 740.01 Disclosure of digital assets held in trust when 345 trustee is the original user.—Unless otherwise ordered by the 346 court or provided in a trust, a custodian shall disclose to a 347 trustee that is an original user of an account any digital asset 348 of the account held in trust, including a catalog of electronic 349 communications of the trustee and the content of electronic 350 communications. 351 Section 12. Section 740.02, Florida Statutes, is created to 352 read: 353 740.02 Disclosure of content of electronic communications 354 held in trust when trustee is not the original user.—Unless 355 otherwise ordered by the court, directed by the user, or 356 provided in a trust, a custodian shall disclose to a trustee 357 that is not an original user of an account the content of an 358 electronic communication sent or received by an original or 359 successor user and carried, maintained, processed, received, or 360 stored by the custodian in the account of the trust if the 361 trustee gives the custodian: 362 (1) A written request for disclosure which is in physical 363 or electronic form; 364 (2) A certified copy of the trust instrument, or a 365 certification of trust under s. 736.1017, which includes consent 366 to disclosure of the content of electronic communications to the 367 trustee; 368 (3) A certification by the trustee, under penalty of 369 perjury, that the trust exists and that the trustee is a 370 currently acting trustee of the trust; and 371 (4) If requested by the custodian: 372 (a) A number, username, address, or other unique subscriber 373 or account identifier assigned by the custodian to identify the 374 trust’s account; or 375 (b) Evidence linking the account to the trust. 376 Section 13. Section 740.03, Florida Statutes, is created to 377 read: 378 740.03 Disclosure of other digital assets held in trust 379 when trustee is not the original user.—Unless otherwise ordered 380 by the court, directed by the user, or provided in a trust, a 381 custodian shall disclose to a trustee that is not an original 382 user of an account, a catalog of electronic communications sent 383 or received by an original or successor user and stored, 384 carried, or maintained by the custodian in an account of the 385 trust and any digital assets in which the trust has a right or 386 interest, other than the content of electronic communications, 387 if the trustee gives the custodian: 388 (1) A written request for disclosure which is in physical 389 or electronic form; 390 (2) A certified copy of the trust instrument, or a 391 certification of trust under s. 736.1017; 392 (3) A certification by the trustee, under penalty of 393 perjury, that the trust exists and that the trustee is a 394 currently acting trustee of the trust; and 395 (4) If requested by the custodian: 396 (a) A number, username, address, or other unique subscriber 397 or account identifier assigned by the custodian to identify the 398 trust’s account; or 399 (b) Evidence linking the account to the trust. 400 Section 14. Section 740.04, Florida Statutes, is created to 401 read: 402 740.04 Disclosure of digital assets to guardian of ward.— 403 (1) After an opportunity for a hearing under chapter 744, 404 the court may grant a guardian access to the digital assets of a 405 ward. 406 (2) Unless otherwise ordered by the court or directed by 407 the user, a custodian shall disclose to a guardian the catalog 408 of electronic communications sent or received by the ward and 409 any digital assets in which the ward has a right or interest, 410 other than the content of electronic communications, if the 411 guardian gives the custodian: 412 (a) A written request for disclosure which is in physical 413 or electronic form; 414 (b) A certified copy of letters of plenary guardianship of 415 the property or the court order that gives the guardian 416 authority over the digital assets of the ward; and 417 (c) If requested by the custodian: 418 1. A number, username, address, or other unique subscriber 419 or account identifier assigned by the custodian to identify the 420 ward’s account; or 421 2. Evidence linking the account to the ward. 422 (3) A guardian with general authority to manage the 423 property of a ward may request a custodian of the digital assets 424 of the ward to suspend or terminate an account of the ward for 425 good cause. A request made under this section must be 426 accompanied by a certified copy of the court order giving the 427 guardian authority over the ward’s property. 428 Section 15. Section 740.05, Florida Statutes, is created to 429 read: 430 740.05 Fiduciary duty and authority.— 431 (1) The legal duties imposed on a fiduciary charged with 432 managing tangible property apply to the management of digital 433 assets, including: 434 (a) The duty of care; 435 (b) The duty of loyalty; and 436 (c) The duty of confidentiality. 437 (2) A fiduciary’s authority with respect to a digital asset 438 of a user: 439 (a) Except as otherwise provided in s. 740.003, is subject 440 to the applicable termsofservice agreement; 441 (b) Is subject to other applicable law, including copyright 442 law; 443 (c) Is limited by the scope of the fiduciary’s duties; and 444 (d) May not be used to impersonate the user. 445 (3) A fiduciary with authority over the tangible personal 446 property of a decedent, ward, principal, or settlor has the 447 right to access any digital asset in which the decedent, ward, 448 principal, or settlor had or has a right or interest and that is 449 not held by a custodian or subject to a terms-of-service 450 agreement. 451 (4) A fiduciary acting within the scope of the fiduciary’s 452 duties is an authorized user of the property of the decedent, 453 ward, principal, or settlor for the purpose of applicable 454 computer fraud and unauthorized computer access laws, including 455 under chapter 815. 456 (5) A fiduciary with authority over the tangible personal 457 property of a decedent, ward, principal, or settlor: 458 (a) Has the right to access the property and any digital 459 asset stored in it; and 460 (b) Is an authorized user for the purpose of computer fraud 461 and unauthorized computer access laws, including under chapter 462 815. 463 (6) A custodian may disclose information in an account to a 464 fiduciary of the user when the information is required to 465 terminate an account used to access digital assets licensed to 466 the user. 467 (7) A fiduciary of a user may request a custodian to 468 terminate the user’s account. A request for termination must be 469 in writing, in paper or electronic form, and accompanied by: 470 (a) If the user is deceased, a certified copy of the death 471 certificate of the user; 472 (b) A certified copy of the letters of administration; the 473 order authorizing a curator or administrator ad litem; the order 474 of summary administration issued pursuant to chapter 735; or the 475 court order, power of attorney, or trust giving the fiduciary 476 authority over the account; and 477 (c) If requested by the custodian: 478 1. A number, username, address, or other unique subscriber 479 or account identifier assigned by the custodian to identify the 480 user’s account; 481 2. Evidence linking the account to the user; or 482 3. A finding by the court that the user had a specific 483 account with the custodian, identifiable by the information 484 specified in subparagraph 1. 485 Section 16. Section 740.06, Florida Statutes, is created to 486 read: 487 740.06 Custodian compliance and immunity.— 488 (1) Not later than 60 days after receipt of the information 489 required under ss. 740.006-740.04, a custodian shall comply with 490 a request under this chapter from a fiduciary or designated 491 recipient to disclose digital assets or terminate an account. If 492 the custodian fails to comply, the fiduciary or designated 493 representative may apply to the court for an order directing 494 compliance. 495 (2) An order under subsection (1) directing compliance must 496 contain a finding that compliance is not in violation of 18 497 U.S.C. s. 2702. 498 (3) A custodian may notify a user that a request for 499 disclosure or to terminate an account was made under this 500 chapter. 501 (4) A custodian may deny a request under this chapter from 502 a fiduciary or designated representative for disclosure of 503 digital assets or to terminate an account if the custodian is 504 aware of any lawful access to the account following the receipt 505 of the fiduciary’s request. 506 (5) This chapter does not limit a custodian’s ability to 507 obtain or require a fiduciary or designated recipient requesting 508 disclosure or termination under this chapter to obtain a court 509 order that: 510 (a) Specifies that an account belongs to the ward or 511 principal; 512 (b) Specifies that there is sufficient consent from the 513 ward or principal to support the requested disclosure; and 514 (c) Contains a finding required by a law other than this 515 chapter. 516 (6) A custodian and its officers, employees, and agents are 517 immune from liability for an act or omission done in good faith 518 in compliance with this chapter. 519 Section 17. Section 740.07, Florida Statutes, is created to 520 read: 521 740.07 Relation to Electronic Signatures in Global and 522 National Commerce Act.—This chapter modifies, limits, and 523 supersedes the Electronic Signatures in Global and National 524 Commerce Act, 15 U.S.C. ss. 7001 et seq., but does not modify, 525 limit, or supersede s. 101(c) of that act, 15 U.S.C. s. 7001(c), 526 or authorize electronic delivery of any of the notices described 527 in s. 103(b) of that act, 15 U.S.C. s. 7003(b). 528 Section 18. Section 740.08, Florida Statutes, is created to 529 read: 530 740.08 Applicability.— 531 (1) Subject to subsection (3), this chapter applies to: 532 (a) A fiduciary acting under a will, trust, or power of 533 attorney executed before, on, or after July 1, 2016; 534 (b) A personal representative acting for a decedent who 535 died before, on, or after July 1, 2016; 536 (c) A guardian appointed through a guardianship proceeding, 537 whether pending in a court or commenced before, on, or after 538 July 1, 2016; and 539 (d) A trustee acting under a trust created before, on, or 540 after July 1, 2016. 541 (2) This chapter applies to a custodian if the user resides 542 in this state or resided in this state at the time of the user’s 543 death. 544 (3) This chapter does not apply to a digital asset of an 545 employer used by an employee in the ordinary course of the 546 employer’s business. 547 Section 19. Section 740.09, Florida Statutes, is created to 548 read: 549 740.09 Severability.—If any provision of this chapter or 550 its application to any person or circumstance is held invalid, 551 the invalidity does not affect other provisions or applications 552 of this chapter which can be given effect without the invalid 553 provision or application, and to this end the provisions of this 554 chapter are severable. 555 Section 20. This act shall take effect July 1, 2016.