No longer considered flyover country, Utah has become one of the most business-friendly states in the US with Forbes ranking it in the top 3 along with Texas and North Carolina. In the 2024 SEL Index of Freedom, Schweitzer Engineering Laboratories ranked Utah #1 for creating the best business climate in the nation. Consumer Affairs ranked Utah as the #1 state to move to in 2025. Inc.com listed Utah among the Top 10 Friendly States for Entrepreneurs in 2025 due to a highly educated workforce, pro-business policies, and affordable real estate for both business and employees.
While Utah leads for its business-friendly environment, what does this mean for individuals? Although some view business interests and people’s interests as often opposing, Utah has figured out how to balance both … and its identity legislation reflects it.
In 2025, Utah’s landmark Individual Digital Identity Amendments surprised digital identity advocates (and opponents) by codifying the following:
- It is the policy of Utah that:
- each individual has a unique identity;
- the state does not establish an individual’s identity;
- the state may, in certain circumstances, recognize and endorse an individual’s identity;
- the state is obligated to respect an individual’s privacy interest associated with the individual’s identity;
Part of what drove this was a concern for personal privacy. While the internet started out as a free service, it is now monetized by tracking technologies that surveil users through targeted advertising … using ads that track users looking for products … and buying products … and receiving purchase notifications … and when that’s all done, shoppers are presented with new ads with even more tracking…
Today’s personal data tracking is concerning, since its unlimited applications range from enhancing product placement to institutionalizing individuals being “tracked and evaluated for trustworthiness.” With most people unable to push back, the Utah’s government is stepping in to help the privacy pendulum swing back to a more balanced position.
A Digital Identity Bill of Rights
Utah’s latest legislation in support of personal privacy, SB0275: State-Endorsed Digital Identity Program Amendments, will officially launch the State-Endorsed Digital Identity (SEDI) as a formal government program. Currently progressing through the legislature, this bill takes a great step forward with the inclusion of a Digital Identity Bill of Rights.
As if there were any doubt that Utah stands strongly favor of individual liberty, legislators are plainly spelling it out for all of Utah (and the entire world) to see. The following 11 points will be established as rights for all residents of Utah:
- An individual possesses an individual identity innate to the individual’s existence and independent of the state, which identity is fundamental and inalienable.
This first right aligns with the birth certificate process. After a child is born, the parents choose a name for the child and provide it (and other vital statistics information) to the state for the creation of a unique birth certificate. In this manner, an individual’s identity is innate to them and exists even prior to being recognized by the state.
- An individual has a right to the management and control of the individual’s digital identity to protect individual privacy.
In the physical world, an individual’s identity is innate to their existence. As such, they determine how they use it, with whom they share it, etc. In digital spaces, individuals will also retain the right to determine how they use and with whom they share their digital identity.
- An individual has a right to choose, receive, and use a physical form of identity assertion that is endorsed by the state.
The process of an individual asserting their innate identity for endorsement by the state is independent of the form that the endorsement takes. Individuals choosing to obtain and use physical identity documents without penalty remains with the individual.
- An individual has a right to not be compelled by the state to possess, use, or rely upon a digital form of identity assertion in place of a physical form of identity assertion that is endorsed by the state.
While some are excited to use secure and convenient digital identity, others remain skeptical about how it may be used or misused (e.g., identity theft). This bill requires that neither digital nor physical identification be prioritized over the other. In support of all perspectives, the choice of whether to use a digital representation of legal identity documents or to continue using physical documents will remain at the discretion of each individual.
- An individual has a right to state endorsement of the individual’s digital identity upon meeting objective, uniform standards for eligibility and verification established by law, and a right to not have such endorsement arbitrarily or discriminatorily withheld or revoked.
Individuals have the right to a permanent identity endorsement from the state insomuch as they meet specified and uniform standards. The current “driver’s license is your identification” system, creates a problem due to the same credential being used both to identify a person and to assert driving privileges. If an individual were to lose their driver’s license for some reason (e.g., driving under the influence, DUI), they would also lose their ability to identify themselves in non-driving scenarios. This right entitles individuals to keep their identification permanently, despite their retention or forfeiture of driving privileges.
- An individual has a right to have the state’s operation of digital identity systems governed by clear standards established by the Legislature, including for eligibility, issuance, endorsement, acceptance, revocation, or interoperability of digital identity assertions.
Since digital identity is becoming a critical infrastructure, all aspects of its design must be governed by clear and open standards that provide anyone with transparent visibility into its operation.
- An individual has a right to transparency in the design and operation of a state digital identity, including the right to access, read, and review the standards and technical specifications upon which the state digital identity is built and operates.
In the computing industry, open standards have become the predominant guide for building systems, since they enable users to learn how a system works, to discover and report flaws, propose improvements, etc. Similarly, the technology and operating standards used to create a state identity system must also be built on open standards.
- An individual has the right to choose what identity attributes are disclosed by the individual’s state digital identity in accordance with standards established by the Legislature.
When using a contemporary driver’s license to prove an identity, users must provide all elements of their identity and are unable to withhold elements irrelevant to a particular transaction. For example, users cannot withhold their donor status when proving their address. Digital identity enables individuals to selectively disclose which identity elements they choose to disclose and which they will not reveal. Individuals have the right to selective disclosure.
- An individual has the right to any service or benefit to which the individual is otherwise lawfully entitled based on the individual’s choice of a lawful format or means of identity assertion without denial, diminishment, or condition.
This means that individuals have the right to choose whether to use a physical or digital identity document or credential without penalty.
- An individual has a right to be free from surveillance, profiling, tracking, or persistent monitoring of the individual’s assertions of digital identity by the state, except as authorized by law.
One of the major concerns with digital identity is that it could enable the state to monitor an individual’s activities related to using the digital identity. This right prohibits the state from surveilling, tracking, or profiling users, except as the law authorizes (e.g., with a valid warrant or subpoena).
- An individual has a right to not be required by the state to surrender the individual’s device in order to present the individual’s digital identity.
Another significant concern for using digital identity is that it could allow the state to require individuals to unlock their phones and provide them to the state, which could leave users vulnerable in a variety of ways. With this right, users have the right to present the credentials in their devices without being compelled to surrender their devices.
Checks and balances on digital identity
Digital identity introduces numerous benefits for everyone in both digital and physical spaces. It’s fast, convenient, secure, private and works in both online and physical environments. Individuals can get it instantly and expired credentials can be removed just as fast. It helps combat fraud, secures transactions, and reduces forgeries. Despite all of these benefits, digital identity is not without risk. While overcoming physical identity’s insecurities and limitations, digital identity also opens up new areas of concern that didn’t exist with physical identity.
Together with introducing a new type of secure and private digital identity system, Utah has the foresight to look at potential drawbacks, risks, and concerns regarding this new identity method together with all of the notable benefits. The several Utah identity legislations have been drafted with some of the same considerations about government that went into the construction of the US Constitution, namely enumerating rights for all people while simultaneously enumerating restrictions on government.
Utah isn’t just creating an advanced digital identity solution to enhance the lives of those using it, rather it is designing a comprehensive ecosystem of technology capabilities, legal requirements, and governance policies. Going that one step further, Utah has also recognized the power of what it is creating … and has provided a Digital Identity Bill of Rights to further protect the rights of the people who will use it.
