Utah Code tit. 13 | Title 13 — Commerce and Trade

Title 13 Commerce and Trade

Chapter 1 Department of Commerce

§ 13-1-1 Legislative findings and declarations.

The Legislature finds that many businesses and occupations in the state have a pronounced physical and economic impact on the health, safety, and welfare of the citizens of the state. The Legislature further finds that while the overall impact is generally beneficial to the public, the potential for harm and injury frequently warrants intervention by state government.

The Legislature declares that it is appropriate and necessary for state government to protect its citizens from harmful and injurious acts by persons offering or providing essential or necessary goods and services to the general public. The Legislature further declares that business regulation should not be unfairly discriminatory. However, the general public interest shall be recognized and regarded as the primary purpose of all regulation by state government.

§ 13-1-2 Creation and functions of department -- Divisions created -- Fees -- Commerce Service Account.

(1)

(a) There is created the Department of Commerce.

(b) The department shall:

(i) execute and administer state laws regulating business activities and occupations affecting the public interest; and

(ii) ensure that any training or certification required of a public official or public employee, as those terms are defined in Section 63G-22-102, complies with Title 63G, Chapter 22, State Training and Certification Requirements, if the training or certification is required:

(A) under this title;

(B) by the department; or

(2) Within the department the following divisions are created:

(a) the Division of Professional Licensing;

(b) the Division of Real Estate;

(d) the Division of Public Utilities;

(e) the Division of Consumer Protection; and

(f) the Division of Corporations and Commercial Code.

(3)

(a) Unless otherwise provided by statute, the department may adopt a schedule of fees assessed for services the department provides by following the procedures and requirements of Section 63J-1-504.

(b) The department shall submit each fee established in this manner to the Legislature for the Legislature's approval as part of the department's annual appropriations request.

(c)

(i) There is created a restricted account within the General Fund known as the "Commerce Service Account."

(ii) The restricted account created in Subsection (3)(c)(i) consists of fees that each division and the department collect.

(iii) The undesignated account balance may not exceed $1,000,000 at the end of each fiscal year.

(iv) At the end of each fiscal year, the director of the Division of Finance shall transfer into the General Fund any undesignated funds in the account that exceed the amount necessary to maintain the undesignated account balance at $1,000,000.

(d) The department may not charge or collect a fee or expend money from the restricted account without approval by the Legislature.

(4)

(a) As used in this Subsection (4):

(i) "Business entity" means a sole proprietorship, partnership, limited partnership, limited liability company, corporation, or other entity or association used to carry on a business for profit.

(ii) "Fund" means the Single Sign-On Expendable Special Revenue Fund, created in Subsection (4)(c).

(iii) "Renewal fee" means a fee that the Division of Corporations and Commercial Code, established in Section 13-1a-1, is authorized or required to charge a business entity in connection with the business entity's periodic renewal of the business entity's status with the Division of Corporations and Commercial Code.

(iv) "Single sign-on fee" means a fee described in Subsection (4)(b) to pay for the establishment and maintenance of the single sign-on business portal.

(v) "Single sign-on business portal" means the same as that term is defined in Section 63A-16-802.

(b)

(i) The schedule of fees adopted by the department under Subsection (3) shall include a single sign-on fee, not to exceed $5, as part of a renewal fee.

(ii) The department shall deposit all single sign-on fee revenue into the fund.

(c)

(i) There is created the Single Sign-On Expendable Special Revenue Fund.

(ii) The fund consists of:

(A) money that the department collects from the single sign-on fee; and

(B) money that the Legislature appropriates to the fund.

(iii)

(A) The department may maintain any portion of the fund in an interest bearing account.

(B) The department shall deposit all interest earned on the fund into the fund.

(d) The department shall use the money in the fund to pay for costs:

(i) to design, create, operate, and maintain the single sign-on business portal; and

(ii) incurred by:

(A) the Department of Technology Services, created in Section 63A-16-103; or

(B) a third-party vendor working under a contract with the Department of Technology Services.

(e) The department shall report on fund revenues and expenditures to the Public Utilities, Energy, and Technology Interim Committee of the Legislature annually and at any other time requested by the committee.

(5)

(a) As used in this Subsection (5), "fund" means the Department of Commerce Technology, Education, and Training Fund created in Subsection (5)(b).

(b) There is created an expendable special revenue fund known as the Department of Commerce Technology, Education, and Training Fund.

(c)

(i) The department may maintain any portion of the fund in an interest bearing account.

(ii) The department shall deposit all interest earned on the fund into the fund.

(d) The fund consists of:

(i) fees the Division of Corporations and Commercial Code collects under Subsections 13-1a-107(4) and 70A-9a-523(6); and

(ii) fees the Division of Professional Licensing collects for making lists of licensees public under Subsection 58-1-106(1)(k).

(e) The department shall use the money in the fund to:

(i) pay each cost the department incurs in providing a subscription service and data to a requester;

(ii) provide public education that covers professional licensing, business entities, commercial code filings, and trademarks;

(iii) publish brochures, laws, policy statements, or other material relevant to the department's work;

(iv) purchase equipment for employees of the Division of Corporation and Commercial Code;

(v) train employees of the Division of Corporation and Commercial Code;

(vi) employ temporary staff; and

(vii) fund purchases of technology and technology maintenance used in business registrations, licensing, and commercial filings.

(6)

(a) As used in this Subsection (6):

(i) "Costs of electronic payments" means:

(A) a charge, discount fee, or processing fee that a credit card company or processing agent charges to process an electronic payment; or

(B) the costs associated with the purchase of equipment necessary for processing electronic payments.

(ii) "Electronic payment" means a form of payment processed through electronic means, including a credit card, debit card, or automatic clearinghouse transaction.

(iii) "Electronic payment fee" means the fee the department adopts in accordance with this Subsection (6) to defray the costs of electronic payments.

(b) As part of the schedule of fees described in Subsection (3)(a), the department shall establish an electronic payment fee.

(i) may collect an electronic payment fee from a person who applies for or renews a license or registration that the department or a division of the department issues; and

(ii) shall deposit into the Commerce Electronic Payment Fee Restricted Account created in Section 13-1-17 each electronic payment fee the department collects.

(d) The electronic payment fee described in this Subsection (6) is not subject to Subsection 63J-1-105(3) or (4).

(e)

(i) If the department imposes an electronic payment fee, the department shall collect the electronic payment fee from each person described in Subsection (6)(c)(i) regardless of whether the person makes an electronic payment.

(ii) The department is not required to separately identify an electronic payment charged to a person described in Subsection (6)(c)(i).

§ 13-1-3 Executive director.

(1) The department shall be under the supervision, direction, and control of the executive director of commerce. The executive director shall be appointed by the governor with the advice and consent of the Senate. The executive director shall hold office at the pleasure of the governor. The governor shall establish the executive director's salary within the salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.

(2) The executive director shall employ personnel necessary to carry out the duties and responsibilities of the department.

§ 13-1-4 Centralization of duties.

The department shall centralize the duties and responsibilities of its divisions and agencies in order to:

(1) reduce and avoid duplication;

(2) provide efficient planning and management services; and

(3) maximize utilization of resources.

§ 13-1-5 Executive director's authority over division directors.

The executive director has policymaking and management jurisdiction over directors of the divisions and agencies within the department. The executive director shall appoint the division directors, subject to approval by the governor, unless otherwise provided by law and shall determine their compensation.

§ 13-1-6 Rules and regulations.

(1) The executive director shall prescribe rules and procedures for the management and operation of the department, the conduct of its employees, and the custody, use, and preservation of its records, papers, books, documents, and property.

(2) The department and its divisions, in contemplation, formulation, and passage of rules pursuant to Subsection (1), shall acknowledge and consider the facilitation of commerce in all its forms, including reliable electronic commerce, for the benefit of both consumers and businesses.

§ 13-1-7 Budgets.

The department shall prepare and submit to the governor a proposed budget for each division or agency within the department to be included in the budget submitted by the governor to the Legislature for the fiscal year following the convening of the Legislature in an annual general session.

§ 13-1-8 Annual report.

The department shall prepare and submit to the governor and the Legislature by October 1 of each year an annual report of the operation, activities and goals of the department, its divisions, and agencies for the preceding fiscal year.

§ 13-1-8.5 Procedures -- Adjudicative proceedings.

(1) The Department of Commerce and its divisions shall comply with the procedures and requirements of Title 63G, Chapter 4, Administrative Procedures Act, in their adjudicative proceedings.

(2) The department may contract with other state agencies or departments to conduct hearings in its name or in the name of its divisions or agencies.

§ 13-1-11 Employment of administrative law judges.

The department may employ administrative law judges to conduct hearings for the department, its divisions, and agencies, and to advise the executive director, division directors, and agency boards on hearing and rulemaking procedures.

§ 13-1-15 Exemptions from licensure.

(1) As used in this section, "DOD civilian" means the same as that term is defined in Section 53H-11-202.

(2) Except as otherwise provided by statute or rule, the following individuals may engage in the practice of an occupation or profession regulated by this title, subject to the stated circumstances and limitations, without being licensed under this title:

(a) an individual licensed under the laws of this state, other than under this title, to practice or engage in an occupation or profession, while engaged in the lawful, professional, and competent practice of that occupation or profession;

(b) an individual serving in the armed forces of the United States, the United States Public Health Service, the United States Department of Veterans Affairs, or any other federal agency while engaged in activities regulated under this title as a part of employment with that federal agency if the individual holds a valid license to practice the regulated occupation or profession issued by any other state or jurisdiction recognized by the department; and

(c) the spouse of an individual serving in the armed forces of the United States or the spouse of a DOD civilian while the individual or DOD civilian is stationed within this state, if:

(i) the spouse holds a valid license to practice the regulated occupation or profession issued by any other state or jurisdiction recognized by the department; and

(ii) the license is current and the spouse is in good standing in the state or jurisdiction of licensure.

§ 13-1-17 Commerce Electronic Payment Fee Restricted Account.

(1) As used in this section:

(a) "Account" means the Commerce Electronic Payment Fee Restricted Account created in this section.

(b) "Costs of electronic payments" means the same as that term is defined in Section 13-1-2.

(d) "Electronic payment" means the same as that term is defined in Section 13-1-2.

(e) "Electronic payment fee" means the same as that term is defined in Section 13-1-2.

(2) There is created in the General Fund a restricted account known as the "Commerce Electronic Payment Fee Restricted Account."

(3) The account consists of money that the department collects as an electronic payment fee in accordance with Section 13-1-2.

(4) Upon appropriation, the department may use money in the account to cover the costs of electronic payments.

(5)

(a) The account balance may not exceed $1,000,000 at the end of each fiscal year.

(b) At the end of each fiscal year, the Division of Finance shall transfer into the General Fund any funds in the account that exceed an account balance of $1,000,000.

§ 13-1-18 License by endorsement.

(1) As used in this section:

(a) "License" means, except as provided in Subsection (1)(b), an authorization that permits the holder to engage in the practice of a profession regulated under this title.

(b) "License" does not include an authorization that permits the holder to engage in the practice of a profession regulated by the Division of Real Estate under Title 61, Securities Division - Real Estate Division, or the Division of Professional Licensing under Title 58, Occupations and Professions.

(2) Subject to Subsections (4) through (7), the department shall issue a license to an applicant who has been licensed in another state, district, or territory of the United States if:

(a) the department determines that the license issued by the other state, district, or territory encompasses a similar scope of practice as the license sought in this state;

(b) the applicant has at least one year of experience practicing under the license issued in the other state, district, or territory; and

(3) Subject to Subsections (4) through (7), the department may issue a license to an applicant who:

(a) has been licensed in another state, district, or territory of the United States, or in a jurisdiction outside of the United States, if:

(i)

(A) the department determines that the applicant's education, experience, and skills demonstrate competency in the profession for which licensure is sought in this state; and

(B) the applicant has at least one year of experience practicing under the license issued in the other state, district, territory, or jurisdiction; or

(ii) the department determines that the licensure requirements of the other state, district, territory, or jurisdiction at the time the license was issued were substantially similar to the requirements for the license sought in this state; or

(b) has never been licensed in a state, district, or territory of the United States, or in a jurisdiction outside of the United States, if:

(i) the applicant was educated in or obtained relevant experience in a state, district, or territory of the United States, or a jurisdiction outside of the United States; and

(ii) the department determines that the education or experience was substantially similar to the education or experience requirements for the license sought in this state.

(4) The department may refuse to issue a license to an applicant under this section if:

(a) the department determines that there is reasonable cause to believe that the applicant is not qualified to receive the license in this state; or

(b) the applicant has a previous or pending disciplinary action related to the applicant's other license.

(5) Before the department issues a license to an applicant under this section, the applicant shall:

(a) pay a fee determined by the department under Section 63J-1-504; and

(b) produce satisfactory evidence of the applicant's identity, qualifications, and good standing in the profession for which licensure is sought in this state.

(6) The department may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, prescribing the administration and requirements of this section.

(7) This section is subject to and may be supplemented or altered by licensure endorsement provisions or multistate licensure compacts in specific chapters of this title.

§ 13-1-19 Property management report required.

(1) As used in this section:

(a) "Department" means the Department of Commerce.

(b) "Property management" means the same as that term is defined in Section 61-2f-102.

(2) Before August 31, 2026, the department shall make a recommendation to the Business and Labor Interim Committee regarding the jurisdiction of the Division of Consumer Protection and the Division of Real Estate over a person engaged in property management that:

(a) identifies areas in which the jurisdiction of the Division of Consumer Protection and the Division of Real Estate overlap in relation to a person engaged in property management;

(b) makes recommendations on whether to realign the jurisdiction of the Division of Consumer Protection or the Division of Real Estate to avoid duplicative jurisdiction over a person engaged in property management; and

(3) In developing the recommendation described in Subsection (2), the department shall consult with:

(a) the Real Estate Commission;

(b) the Division of Consumer Protection;

(d) one or more person engaged in property management; and

(e) any other person the department determines has subject matter expertise to help develop the recommendation.

Chapter 1a Division of Corporations and Commercial Code

§ 13-1a-1 Creation of division -- Responsibilities.

There is established within the Department of Commerce the Division of Corporations and Commercial Code which is responsible for corporation and commercial code filings in this state.

§ 13-1a-2 Director to supervise division -- Appointment.

The division shall be under the supervision, direction, and control of a director. The director shall be appointed by the executive director of the Department of Commerce with the approval of the governor. The director shall hold office at the pleasure of the governor.

§ 13-1a-3 Employment and compensation of personnel -- Compensation of director.

The director, with the approval of the executive director, may employ personnel necessary to carry out the duties and responsibilities of the division at salaries established by the executive director according to standards established by the Division of Human Resource Management. The executive director shall establish the salary of the director according to standards established by the Division of Human Resource Management.

§ 13-1a-4 Annual budget.

On or before the 1st day of October each year, the director shall prepare and submit to the executive director an annual budget of the administrative expenses of the division.

§ 13-1a-5 Authority of director.

The director has authority:

(1) to make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer the responsibilities of the division;

(2) to investigate, upon complaint, the corporation and commercial code filings and compliance governed by the laws administered and enforced by the division; and

(3) under the provisions of Title 63G, Chapter 4, Administrative Procedures Act, to take administrative action against persons in violation of the division rules and the laws administered by it, including the issuance of cease and desist orders.

§ 13-1a-6 Powers and responsibilities of Division of Corporations and Commercial Code -- Document retention.

(1) The Division of Corporations and Commercial Code shall have the power and authority reasonably necessary to enable the division to efficiently administer the laws and rules for which the division is responsible and to perform the duties imposed upon the division by law.

(2) The division has authority under Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to make rules and procedures for the processing, retention, and disposal of filed documents to efficiently utilize electronic and computerized document image storage and retrieval.

(3) Notwithstanding the provisions of Section 63A-12-105, original documents filed in the division offices may not be considered property of the state if the division retains electronic image reproductions of the original documents that comply with the provisions of Title 63G, Chapter 2, Government Records Access and Management Act.

(4)

(a) The division shall offer to sell or license to the public on a nonexclusive basis, in bulk or through subscription, copies of each filed record in every medium available to the filing office.

(b) The division may charge a fee for subscription data services and bulk data sales in accordance with Section 63J-1-504.

(5) The division shall publish on a website accessible to the public the contact information and internet website link of the protection and advocacy agency designated by the governor that can assist members of the public in understanding the current laws and regulations regarding service animals and public accommodation.

§ 13-1a-7 Hearing powers.

(1) The director, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, may hold or cause to be held administrative hearings regarding any matter affecting the division or the incorporation or registration activities of any business governed by the laws administered by the division.

(2) The director or the director's designee, for the purposes outlined in this chapter or any chapter administered by the division, may administer oaths, issue subpoenas, compel the attendance of witnesses, and compel the production of papers, books, accounts, documents, and evidence.

§ 13-1a-8 Violation of restraining or injunctive order -- Civil penalty.

If any restraining order or injunction issued under this chapter is violated, the division may submit a motion for, or the court on its own motion may impose, a civil penalty of not more than $100 for each day a restraining order, preliminary injunction, or permanent injunction issued under this chapter is violated, if the party has received notice of the restraining order or injunction.

§ 13-1a-9 Fees of Division of Corporations and Commercial Code.

In addition to the fees prescribed by Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, and Title 16, Chapter 10a, Utah Revised Business Corporation Act, the Division of Corporations and Commercial Code shall receive and determine fees pursuant to Section 63J-1-504 for filing articles of incorporation or amendments of insurance corporations, of canal or irrigation corporations organized for furnishing water to lands owned by the members thereof exclusively, or of water users' associations organized in conformity with the requirements of the United States under the Reclamation Act of June 17, 1902, and which are authorized to furnish water only to their stockholders. No license fee may be imposed on insurance corporations, canal or irrigation corporations organized for furnishing water to lands owned by the members thereof exclusively, or water users' associations organized in conformity with the requirements of the United States under the Reclamation Act of June 17, 1902, and which are authorized to furnish water only to the stockholders at the time any such corporation files its articles of incorporation, articles of amendment increasing the number of authorized shares, or articles of merger or consolidation, any provision of Title 16, Chapter 10a, Utah Revised Business Corporation Act, to the contrary notwithstanding.

Part 1 General Provisions

§ 13-1a-101 Definitions.

As used in this chapter:

(1) "Director" means the director of the division appointed in accordance with Section 13-1a-103.

(2) "Division" means the Division of Corporations and Commercial Code created in Section 13-1a-102.

(3) "Executive director" means the executive director of the Department of Commerce appointed under Section 13-1-3.

§ 13-1a-102 Creation of division -- Responsibilities.

(1) There is established within the Department of Commerce the Division of Corporations and Commercial Code that is responsible for corporation and commercial code filings in this state.

(2) The division shall administer:

(a) Section 41-12a-505;

(b) Section 56-1-3;

(d) Section 63G-7-401;

(e) Title 3, Chapter 1, General Provisions Relating to Agricultural Cooperative Associations;

(f) Title 16, Business Entities;

(g) Title 42, Chapter 2, Conducting Business as a D.B.A.;

(h) Title 70, Chapter 3a, Registration and Protection of Trademarks and Service Marks Act; and

(i) Title 70A, Uniform Commercial Code.

§ 13-1a-103 Director to supervise division -- Appointment.

(1) The division shall be under the supervision, direction, and control of a director.

(2) The executive director, with the approval of the governor, shall appoint the director.

(3) The director shall hold office at the discretion of the governor.

§ 13-1a-104 Employment and compensation of personnel -- Compensation of director.

(1) The director, with the approval of the executive director, may employ personnel necessary to carry out the duties and responsibilities of the division at salaries the executive director establishes according to standards that the Division of Human Resource Management establishes.

(2) The executive director shall establish the salary of the director according to standards that the Division of Human Resource Management establishes.

§ 13-1a-105 Annual budget.

On or before October 1 each year, the director shall prepare and submit to the executive director an annual budget of the administrative expenses of the division.

§ 13-1a-106 Authority of director.

The director may:

(1) make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer the responsibilities of the division;

(2) investigate, upon receiving a complaint, the corporation and commercial code filings and compliance governed by a law the division administers and enforces;

(3) bring an administrative or civil action in a court with jurisdiction;

(4) in accordance with Title 63G, Chapter 4, Administrative Procedures Act:

(a) take administrative action against a person that violates a division rule or a law that the division administers, including issuing a cease and desist order; and

(b) hold or cause to be held administrative hearings regarding a matter affecting:

(i) the division; or

(ii) the incorporation or registration activities of a business governed by a law administered by the division;

(5) for a purpose described in this chapter or any chapter the division administers:

(a) administer an oath;

(b) issue a subpoena;

(d) compel the production of papers, books, accounts, documents, and evidence; and

(6) designate an individual to carry out an action described in Subsection (5).

§ 13-1a-107 Powers and responsibilities of Division of Corporations and Commercial Code -- Document retention.

(1) The division has the power and authority reasonably necessary to enable the division to:

(a) efficiently administer each law and rule for which the division is responsible; and

(b) perform the duties imposed upon the division by law.

(2) The division may, under Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules and procedures for the processing, retention, and disposal of filed documents to efficiently utilize electronic and computerized document image storage and retrieval.

(3) Notwithstanding the provisions of Section 63A-12-105, original documents filed in the division offices are not considered property of the state if the division retains electronic image reproductions of the original documents that comply with the provisions of Title 63G, Chapter 2, Government Records Access and Management Act.

(4)

(a) The division shall offer to sell or license to the public on a nonexclusive basis, in bulk or through subscription, copies of each filed record in every medium available to the filing office.

(b) The division may charge a fee for subscription data services and bulk data sales in accordance with Section 63J-1-504.

§ 13-1a-108 Hearing powers.

(1) The director, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, may hold or cause to be held an administrative hearing regarding a matter affecting the division or the incorporation or registration activities of a business governed by the laws the division administers.

(2) The director or the director's designee, for the purposes outlined in this chapter or a chapter administered by the division, may administer oaths, issue subpoenas, compel the attendance of witnesses, and compel the production of papers, books, accounts, documents, and evidence.

§ 13-1a-109 Violation of an administrative order, a restraining order, or an injunctive order -- Civil penalty.

If a person violates an administrative order, a restraining order, or an injunction that the division issues under this chapter and the person receives notice of the administrative order, restraining order, or injunction, the division may submit a motion for, or a court with jurisdiction may impose, a civil penalty of not more than $100 for each day a person violates an administrative order, a restraining order, preliminary injunction, or permanent injunction that the division issues under this chapter.

§ 13-1a-110 Fees of Division of Corporations and Commercial Code.

(1) In addition to the fees described in Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, and Title 16, Chapter 10a, Utah Revised Business Corporation Act, the division shall receive and determine fees in accordance with Section 63J-1-504 for filing articles of incorporation or amendments for:

(a) an insurance corporation;

(b) a canal or irrigation corporation organized for furnishing water to lands owned exclusively by the members of the canal or irrigation corporation; or

(i) organized in conformity with the requirements of the United States under the Reclamation Act of June 17, 1902; and

(ii) that is authorized to furnish water only to the water users' association's stockholders.

(2) The division may not impose a license fee on an entity described in Subsections (1)(a) though (c) at the time the entity files the entity's articles of incorporation, articles of amendment increasing the number of authorized shares, or articles of merger or consolidation.

Chapter 1b Office of Professional Licensure Review

Part 1 General Provisions

§ 13-1b-101 Definitions.

As used in this chapter:

(1) "Department" means the Department of Commerce.

(2) "Director" means the director of the office.

(3) "Executive director" means the executive director of the Department of Commerce.

(4) "Government requestor" means:

(a) the governor;

(b) an executive branch officer other than the governor;

(d) a legislator; or

(e) a legislative committee.

(5) "Health, safety, or financial welfare of the public" includes protecting against physical injury, property damage, or financial harm of the public.

(6) "License" or "licensing" means a state-granted authorization for a person to engage in a specified occupation:

(a) based on the person meeting personal qualifications established under state law; and

(b) where state law requires the authorization before the person may lawfully engage in the occupation for compensation.

(7) "Newly regulate" means to create by statute or administrative rule a new license, certification, registration, or exemption classification regarding an occupation.

(8) "Occupation" means a course of conduct, pursuit, or profession that includes the sale of goods or services that are not illegal to sell, irrespective of whether the individual selling the goods or services is subject to an occupational regulation.

(9) "Office" means the Office of Professional Licensure Review created in this chapter.

(10) "Periodic review" means a review described in Subsection 13-1b-203(2).

(11)

(a) "Personal qualifications" means criteria established in state law related to an individual's background.

(b) "Personal qualifications" includes:

(i) completion of an approved education program;

(ii) satisfactory performance on an examination;

(iii) work experience; and

(iv) completion of continuing education.

(12) "Regulated occupation" means an occupation that:

(a) requires a person to obtain a license to practice the occupation; or

(b) provides for state certification or state registration.

(13) "State certification" means a state-granted authorization given to a person to use the term "state certified" as part of a designated title related to engaging in a specified occupation:

(a) based on the person meeting personal qualifications established under state law; and

(b) where state law prohibits a noncertified person from using the term "state certified" as part of a designated title but does not otherwise prohibit a noncertified person from engaging in the occupation for compensation.

(14) "State registration" means a state-granted authorization given to a person to use the term "state registered" as part of a designated title related to engaging in a specified occupation:

(a) based on the person meeting requirements established under state law, which may include the person's name and address, the person's agent for service of process, the location of the activity to be performed, and bond or insurance requirements;

(b) where state law does not require the person to meet any personal qualifications; and

(c) where state law prohibits a nonregistered person from using the term "state registered" as part of a designated title.

(15) "Sunrise review" means a review under this chapter of an application to establish a new regulated occupation.

§ 13-1b-102 Applicability.

This chapter applies to any regulation of an occupation that is administered by a state executive branch agency.

Part 2 Organization

§ 13-1b-201 Creation of office -- Director appointed -- Personnel.

(1) There is created within the department the Office of Professional Licensure Review to perform the functions and duties described in this chapter.

(2) The office is under the direction and control of a director appointed by the executive director with approval of the governor.

(3) The executive director shall establish the salary of the director in accordance with standards established by the Division of Human Resource Management.

§ 13-1b-202 Powers of the director and the office.

(1) The director may employ personnel necessary to carry out the duties and responsibilities of the office at salaries determined by the executive director in accordance with standards established by the Division of Human Resource Management.

(2) The office may:

(a) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer the responsibilities of the office described in this chapter, including rules creating criteria for conducting a sunrise review or a periodic review;

(b) make recommendations to other state executive branch agencies regarding regulated occupations; and

(3) A state executive branch agency may adopt or reject a recommendation described in Subsection (2)(b).

§ 13-1b-203 Duties.

The office shall:

(1) for each application submitted in accordance with Section 13-1b-301, conduct a sunrise review in accordance with Section 13-1b-302 before November 1:

(a) of the year in which the application is submitted, if the application is submitted on or before July 1; or

(b) of the subsequent year, if the application is submitted after July 1;

(2) in accordance with Section 13-1b-303, conduct a review of each regulated occupation at least once every 10 years;

(3) review and respond to a legislator inquiry regarding a proposed or existing regulated occupation;

(4) publish on the office's website a submission form where an individual may provide feedback regarding an existing occupational regulation within the office's jurisdiction that the individual requests the office repeal or modify;

(5) engage in a systematic review of the rules that relate to occupational regulations within the office's jurisdiction in accordance with Section 13-1b-302;

(6) report to the Business and Labor Interim Committee in accordance with Section 13-1b-304; and

(7) conduct a scope of practice review in accordance with Part 4, Scope of Practice Review.

Part 3 Office Review and Reporting

§ 13-1b-301 Application for sunrise review -- Fees.

(1) An application for sunrise review shall describe:

(a) why making the occupation a regulated occupation is necessary to protect against present, recognizable, and significant harm to the health, safety, or financial welfare of the public; and

(b) the least restrictive regulation of the occupation that would protect against present, recognizable, and significant harm to the health, safety, or financial welfare of the public.

(2) If a representative of an occupation submits an application in accordance with this section, the application shall include a nonrefundable fee of $500.

(3) All application fees collected under this section shall be deposited into the General Fund.

§ 13-1b-302 Review criteria.

In conducting a sunrise review, a periodic review, or a standalone review, unless otherwise directed in accordance with Subsection 13-1b-203(3), the office shall consider the following criteria:

(1) whether the regulation of the occupation is necessary to address a present, recognizable, and significant harm to the health, safety, or financial welfare of the public;

(2) for any harm to the health, safety, or financial welfare of the public, the harm's:

(a) severity;

(b) probability; and

(3) the extent to which the proposed or existing regulation of the occupation protects against or diminishes the harm described in Subsection (1);

(4) whether the proposed or existing regulation of the occupation:

(a) affects the supply of qualified practitioners;

(b) creates barriers to:

(i) service that are not in the public financial welfare or interest; or

(ii) entry into the occupation or related occupations;

(d) affects:

(i) license reciprocity with other jurisdictions; or

(ii) mobility of practitioners; or

(e) if the occupation involves a health care provider, impacts the health care provider's ability to obtain payment of benefits for the health care provider's treatment of an illness, injury, or health care condition under an insurance contract subject to Section 31A-22-618;

(5) if the review involves licensing, the potential alternative pathways for a person to obtain a license;

(6) the costs to the state of regulating the occupation;

(7) whether the proposed or existing administering agency has sufficient expertise and resources;

(8) the regulation of the occupation in other jurisdictions;

(9) the scope of the proposed or existing regulation, including:

(a) whether the occupation is clearly distinguishable from an already regulated occupation; and

(b) potential for regulating only certain occupational activities;

(10) the potentially less burdensome alternatives to the proposed or existing regulation and the effect of implementing an alternative method of regulation on:

(a) the health, safety, or financial welfare of the public;

(b) the occupation; and

(11) any other criteria the office adopts, including criteria suggested in a stakeholder survey.

§ 13-1b-303 Legislative prioritization of reviews.

(1) Before October 1 of each year, the office shall prepare and submit to the Business and Labor Interim Committee a list of each periodic review that the office proposes to conduct during the upcoming year, including the scope of each periodic review.

(2) Before December 1 of the calendar year in which the office submits a list under Subsection (1), the Business and Labor Interim Committee shall:

(a) approve the list, with or without modification; and

(b) submit a copy of the approved list to the Legislative Management Committee for approval, with or without modification.

§ 13-1b-304 Reporting.

(1) On or before October 1, the office shall annually prepare and submit a written report to the Business and Labor Interim Committee that describes the office's work during the prior year.

(2) In a written report described in Subsection (1), the office shall include:

(a) a summary of each periodic review, each sunrise review, each rule review, and each response to a legislator inquiry;

(b) each recommendation the office made to another state executive branch agency regarding a regulated occupation;

(i) the total number of submissions the office receives;

(ii) each rule for which an individual filed a submission;

(d) each request for a scope of practice review that the office receives in accordance with Section 13-1b-403; and

(e) each scope of practice review the office completes in accordance with Section 13-1b-403.

Part 4 Scope Of Practice Review

§ 13-1b-401 Definitions.

As used in this part:

(1) "Healthcare practitioner" means an individual licensed in a regulated healthcare occupation.

(2)

(a) "Innovation" means an upgrade in technology that the office determines has the potential to augment the ability of a healthcare practitioner to provide a patient:

(i) better access to healthcare;

(ii) better health outcomes; or

(iii) lower healthcare costs.

(b) "Innovation" does not include an upgrade in technology that solely functions to provide advice or treatment to a patient without an interaction between a healthcare practitioner and patient.

(3) "Regulated healthcare occupation" means a regulated occupation where licensees of the regulated occupation are primarily engaged in healthcare.

(4) "Requestor" means:

(a) a legislator; or

(b) a representative of:

(i) an entity that employs healthcare practitioners;

(ii) an institution of higher education that provides training to prospective and current healthcare practitioners; or

(iii) a professional group of healthcare practitioners.

(5) "Scope of practice review" means a review that the office conducts to determine whether to recommend that a regulated healthcare occupation should incorporate an innovation into the regulated healthcare occupation's practice in a way that would expand the scope of the regulated healthcare occupation's license.

(6) "Upgrade in technology" means an addition or change to:

(a) a medical apparatus;

(b) a medical appliance;

(d) a medical device;

(e) medical equipment;

(f) a medical implant;

(g) a medical implement;

(h) a medical tool; or

(i) any other technology the office determines has the potential for a healthcare practitioner to use in the healthcare practitioner's practice.

§ 13-1b-402 Scope of practice review -- Process.

(1) A requestor may request a scope of practice review by submitting a request for scope of practice review in a form the office approves.

(2)

(a) Upon receipt of a request for scope of practice review, the office shall:

(i) make a determination as to whether the office will conduct a scope of practice review; and

(ii) notify the chairs of the Business and Labor Interim Committee of the request for scope of practice review.

(b) After making a determination described in Subsection (2)(a)(i), the office shall:

(i) if the office declines to conduct a scope of practice review, provide the requestor with a reason for the denial; or

(ii) if the office intends to conduct a scope of practice review:

(A) inform the requestor that the office will conduct a scope of practice review; and

(B) conduct a scope of practice review in accordance with Subsection (3).

(3)

(a) When conducting a scope of practice review, the office shall convene a group of individuals to advise on the impact of the expansion of the scope of review.

(b) When selecting the individuals for the group described in Subsection (3)(a), the office:

(i) in consultation with the applicable board appointed in accordance with Section 58-1-201, shall select at least:

(A) one individual that the applicable board approves from the regulated occupation that the proposed expansion of scope will affect; and

(B) one other individual from the regulated occupation that the proposed expansion of scope will affect; and

(ii) may select one or more of the following individuals:

(A) a representative of an entity that employs healthcare practitioners;

(B) a representative of an institution of higher education that provides training to prospective and current healthcare practitioners; and

(i) consider the criteria described in Section 13-1b-403; and

(ii) determine whether to provide a recommendation that a regulated healthcare occupation incorporate an innovation into the regulated healthcare occupation's practice.

(4) If the office determines that a regulated healthcare occupation should incorporate an innovation into the regulated healthcare occupation's practice, the office shall create a preliminary report to present to the Business and Labor Interim Committee that:

(a) recommends how the regulated healthcare occupation may incorporate the innovation into the regulated healthcare occupation's scope of practice; and

(b) describes how incorporating the innovation expands the regulated healthcare occupation's scope of practice.

(5) The office shall provide the preliminary report described in Subsection (4) to the Business and Labor Interim Committee in accordance with Section 13-1b-304.

(6) Upon receiving the preliminary report under Subsection (5), the Business and Labor Interim Committee may:

(a) recommend draft legislation to address the preliminary report described in Subsection (4);

(b) recommend that the Division of Occupational and Professional Licensing make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or

(7) After presenting the preliminary report, the office shall create and publish a final report based on the preliminary report and any recommendations provided by the Business and Labor Interim Committee.

§ 13-1b-403 Scope of practice review -- Criteria.

When conducting a scope of practice review in accordance with Subsection 13-1b-203(7) and Section 13-1b-402, the office shall consider the following criteria:

(1) the strength of evidence, data, or information indicating the innovation will provide:

(a) safer or more effective healthcare;

(b) more accessible healthcare; or

(2) the potential of the innovation to improve the following:

(a) the safety or efficacy of healthcare;

(b) healthcare accessibility; or

(3) the probability, severity, and permanence of any risk an innovation poses to a patient;

(4) the level of interest from employers, healthcare practitioners, and educators to test or adopt the innovation;

(5) the availability of adequate training or education for healthcare practitioners to learn about the innovation;

(6) the degree to which other jurisdictions adopt or use the innovation; and

(7) any other criteria that the office adopts by rule that the office makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

Chapter 2 Division of Consumer Protection

Part 1 General Provisions

§ 13-2-101 Definitions.

As used in this chapter:

(1) "Director" means the director of the Division of Consumer Protection appointed under Section 13-2-103.

(2) "Division" means the Division of Consumer Protection established in Section 13-2-102.

§ 13-2-102 Consumer protection division established -- Functions.

(1) There is established within the Department of Commerce the Division of Consumer Protection.

(2) The division shall administer and enforce the following:

(a) Chapter 10a, Music Licensing Practices Act;

(b) Chapter 11, Utah Consumer Sales Practices Act;

(d) Chapter 20, New Motor Vehicle Warranties Act;

(e) Chapter 21, Credit Services Organizations Act;

(f) Chapter 22, Charitable Solicitations Act;

(g) Chapter 23, Fitness Center Services Protection Act;

(h) Chapter 25a, Telephone and Facsimile Solicitation Act;

(i) Chapter 26, Telephone Fraud Prevention Act;

(j) Chapter 28, Prize Notices Regulation Act;

(k) Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter Transaction Information Act;

(l) Chapter 34, Utah Postsecondary School and State Authorization Act;

(m) Chapter 41, Price Controls During Emergencies Act;

(n) Chapter 42, Uniform Debt-Management Services Act;

(o) Chapter 49, Immigration Consultants Registration Act;

(p) Chapter 51, Transportation Network Company Registration Act;

(q) Chapter 52, Residential Solar Energy Consumer Protection Act;

(r) Chapter 53, Residential, Vocational and Life Skills Program Act;

(s) Chapter 54, Ticket Website Sales Act;

(t) Chapter 56, Ticket Transferability Act;

(u) Chapter 57, Maintenance Funding Practices Act;

(v) Chapter 61, Utah Consumer Privacy Act;

(w) Chapter 64, Vehicle Value Protection Agreement Act;

(x) Chapter 65, Utah Commercial Email Act;

(y) Chapter 67, Online Dating Safety Act;

(z) Chapter 68, Lawyer Referral Consultants Registration Act;

(aa) Chapter 70, Automatic Renewal Contracts Act;

(bb) Chapter 71, Utah Minor Protection in Social Media Act;

(cc) Chapter 72a, Artificial Intelligence Applications Relating to Mental Health;

(dd) Chapter 77, Generative Artificial Intelligence - Consumer Disclosures and Enforcement;

(ee) Chapter 78, Earned Wage Access Services Act;

(ff) Title 78B, Chapter 3, Part 10, Liability for Publishers and Distributors of Material Harmful to Minors;

(gg) Chapter 81, Utah Digital Choice Act;

(hh) Chapter 82, Feminine Hygiene Products; and

(ii) Chapter 83, Virtual Currency Kiosk Regulation.

(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division may make rules to establish:

(a) a public list that identifies a person that:

(i) violates a chapter or section described in Subsection (2);

(ii) without proper legal justification, fails to comply with an order, subpoena, judgment, or other legal process issued by:

(A) the division; or

(B) a court of competent jurisdiction; or

(iii) breaches a settlement agreement, stipulation, assurance of voluntary compliance, or similar instrument signed by the person and the division; and

(b) a process by which a person may be removed from the list the division establishes as described in Subsection (3)(a).

§ 13-2-103 Director of division -- Appointment.

(1) The division shall be under the supervision, direction, and control of a director.

(2) The director shall be appointed by the executive director of commerce with the approval of the governor.

(3) The director shall hold office at the pleasure of the governor.

§ 13-2-104 Employment of personnel -- Compensation of director.

(1) The director, with the approval of the executive director, may employ personnel necessary to carry out the duties and responsibilities of the division at salaries established by the executive director according to standards established by the Division of Human Resource Management.

(2) The executive director shall establish the salary of the director according to standards established by the Division of Human Resource Management.

(3) The director may employ specialists, technical experts, or investigators to participate or assist in an investigation if the investigation reasonably requires expertise beyond that normally required for division personnel.

(4)

(a) Subject to Subsection (4)(b), the director may designate an investigator employed in accordance with Subsection (3) as a special function officer, as that term is defined in Section 53-13-105.

(b) An investigator designated as a special function officer in accordance with Subsection (4)(a) is not eligible for retirement benefits under the Public Safety Employee's Retirement System.

§ 13-2-105 Annual report -- Budget.

(1) On or before October 1 of each year, the director in connection with the executive director shall report to the governor and the Legislature for the preceding fiscal year on the operations, activities, and goals of the division.

(2) The director shall prepare and submit to the executive director a budget of the administrative expenses for the division.

§ 13-2-106 Powers of director.

The director may:

(1) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, issue rules to administer and enforce a chapter or section listed in Section 13-2-102;

(2) investigate conduct governed by the laws the division administers and enforces;

(3) take administrative and judicial action against a person that violates the division rules and the laws the division administers and enforces, including the issuance of cease and desist orders;

(4) coordinate, cooperate, and assist with business and industry desiring or attempting to correct unfair business practices between competitors;

(5) provide consumer information and education to the public and assist an organization that provides consumer information and education to the public; and

(6) coordinate with, assist, and utilize the assistance of federal, state, and local agencies in the performance of the director's duties and the protection of the public.

§ 13-2-107 Enforcement powers.

(1) As used in this section, "transactional resources" means:

(a) a mail drop or mail box, regardless of whether the mail drop or mail box is located on the premises of a United States Post Office;

(b) a telephone or facsimile transmission device;

(c) an internet connection by a resident or inhabitant of this state with a resident- or nonresident-maintained internet site;

(d) a business office or private residence used for a business-related purpose;

(e) an account with or services of a financial institution;

(f) the services of a common or private carrier; or

(g) the use of a city, county, or state asset or facility, including a road or highway.

(2) In accordance with Title 63G, Chapter 4, Administrative Procedures Act, the division may convene administrative hearings, issue cease and desist orders, and impose fines under all the chapters or sections identified in Section 13-2-102.

(3) A person that intentionally violates a final cease and desist order entered by the division of which the person has notice is guilty of a third degree felony.

(4) If the division has reasonable cause to believe that a person has violated or is violating any chapter or section listed in Section 13-2-102, the division may promptly issue the alleged violator a citation signed by the division's director or the director's designee.

(a) Each citation shall be in writing and shall:

(i) set forth with particularity the nature of the violation, including a reference to the statutory or administrative rule provision violated;

(ii) state that a request for review of the citation shall be made in writing and be received by the division no more than 20 calendar days after the day on which the division issues the citation;

(iii) state the consequences of failing to make a timely request for review; and

(iv) state all other information required by Subsection 63G-4-201(2).

(b) In computing a time period under this section, the following days may not be included:

(i) the day on which the division issues a citation; and

(ii) the day on which the division receives a request for review of a citation.

(c)

(i) Except as provided in Subsection (4)(c)(iii), if the presiding officer finds that there is not substantial evidence that the recipient violated a chapter or section listed in Section 13-2-102:

(A) the citation may not become final; and

(B) the division shall immediately vacate the citation and promptly notify the recipient in writing.

(ii) Except as provided in Subsection (4)(c)(iv), if the presiding officer finds that there is substantial evidence that the recipient violated a chapter or section listed in Section 13-2-102:

(A) the citation shall become final; and

(B) the division may enter a cease and desist order against the recipient.

(iii) For a citation issued for a violation of Chapter 41, Price Controls During Emergencies Act, if the presiding officer finds that there is not clear and convincing evidence that the recipient violated the chapter:

(A) the citation may not become final; and

(B) the division shall immediately vacate the citation and promptly notify the recipient in writing.

(iv) For a citation issued for a violation of Chapter 41, Price Controls During Emergencies Act, if the presiding officer finds that there is clear and convincing evidence that the recipient violated the chapter:

(A) the citation shall become final; and

(B) the division may enter a cease and desist order against the recipient.

(d)

(i) A citation issued under this chapter may be personally served upon a person upon whom a summons may be served in accordance with the Utah Rules of Civil Procedure.

(ii) A citation also may be served by first-class mail, postage prepaid.

(e)

(i) If the recipient fails to make a request for review within 20 calendar days after the day on which the division issues the citation, the citation shall become the final order of the division.

(ii) The period to contest the citation may be extended by the director for good cause shown.

(f) If the chapter or section violated allows for an administrative fine, after a citation becomes final, the director may impose the administrative fine.

(5) A person that has violated, is violating, or has attempted to violate a chapter or section identified in Section 13-2-102 is subject to the division's jurisdiction if:

(a) the violation or attempted violation is committed wholly or partly within the state;

(b) conduct committed outside the state constitutes an attempt to commit a violation within the state; or

(c) transactional resources located within the state are used by the offender to directly or indirectly facilitate a violation or attempted violation.

(6) The director or the director's designee, for the purposes outlined in a chapter administered by the division, may administer oaths, issue subpoenas, compel the attendance of witnesses, conduct audits, compel sworn responses to written questions, or compel the production of papers, books, accounts, documents, or evidence.

(7)

(a) An administrative action filed under this chapter or a chapter or section listed in Section 13-2-102 shall be commenced no later than 10 years after the day on which the alleged violation occurs.

(b) A civil action filed under this chapter or a chapter or section listed in Section 13-2-102 shall be commenced no later than five years after the day on which the alleged violation occurs.

(8) When granting a judgment in the division's favor in connection with the division's exercise of any authority described in Section 13-2-106 or 13-2-107, a court shall award:

(a) reasonable attorney fees;

(b) court costs;

(d) any other relief the court deems appropriate.

§ 13-2-108 Violation of restraining or injunctive order -- Civil penalty.

If a person violates a restraining order, a chapter or section the division administers, or an injunction granted under this chapter, the division may submit a motion for, or the court on the court's own motion, may impose a civil penalty of not more than $2,000 for each day a person violates a temporary restraining order, preliminary injunction or permanent injunction issued under this chapter, if the person receives notice of the restraining or injunctive order.

§ 13-2-109 Consumer Protection Education and Training Fund.

(1) There is created an expendable special revenue fund known as the "Consumer Protection Education and Training Fund."

(2)

(a) Unless otherwise provided by a chapter or section listed in Section 13-2-102, the division shall deposit into the Consumer Protection Education and Training Fund all money not distributed as consumer restitution that the division receives from:

(i) administrative fines and settlements;

(ii) criminal restitution; or

(iii) civil damages, forfeitures, penalties, and settlements when the division receives the money on the division's own behalf and not in a representative capacity.

(b) The division may maintain any portion of the Consumer Protection Education and Training Fund in an interest-bearing account.

(c) The division shall deposit all interest earned on fund money into the Consumer Protection Education and Training Fund.

(3) Notwithstanding Title 63J, Chapter 1, Budgetary Procedures Act, the division may use the Consumer Protection Education and Training Fund with the approval of the executive director of the Department of Commerce in a manner consistent with the duties of the division under this chapter for:

(a) consumer protection education for members of the public;

(b) equipment for and training of division personnel;

(c) publication of consumer protection brochures, laws, policy statements, or other material relevant to the division's enforcement efforts; and

(d) investigation and litigation undertaken by the division.

(4) If the balance in the Consumer Protection Education and Training Fund exceeds $1,000,000 at the close of any fiscal year, the division shall transfer the excess to the General Fund.

§ 13-2-110 Internet -- Consumer education.

(1) The Division of Consumer Protection shall, subject to appropriation, contract with a person to make public service announcements advising consumers about the dangers of using the Internet, especially:

(a) material harmful to minors;

(b) steps a consumer may take to learn more about the dangers of using the Internet;

(c) information about how a service provider can help a consumer learn more about the dangers of using the Internet, including the service provider's duties created by this bill; and

(d) how a consumer can monitor the Internet usage of family members.

(2) Money appropriated under Subsection (1) shall be paid by the Division of Consumer Protection to a person only if:

(a) the person is a nonprofit organization; and

(b) the person agrees to spend private money amounting to two times the amount of money provided by the Division of Consumer Protection during each fiscal year in accordance with Subsection (1).

(3) In administering any money appropriated for use under this section, the Division of Consumer Protection shall comply with Title 63G, Chapter 6a, Utah Procurement Code.

§ 13-2-111 Social credit score reporting system -- Rulemaking -- Referral to other agencies.

(1) As used in this section:

(a) "Financial institution" means the same as that term is defined in Section 7-1-103.

(b) "Social credit score" means the same as that term is defined in Section 63G-29-101.

(2) The division shall:

(a) establish and operate a system to receive consumer reports regarding a financial institution's or company's use or creation of a social credit score; and

(b) before November 1 of each year, submit a written report to the Business and Labor Interim Committee that summarizes the reports received during the immediately preceding year that indicate a financial institution or company used a social credit score to discriminate against, advocate for, or cause adverse or preferential treatment of a person.

(3) The division may:

(a) make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish and operate the system described in Subsection (2); and

(b) as appropriate, refer a consumer who provides a report through the system described in Subsection (2) to the Department of Financial Institutions or another agency for investigation of the report or other action.

§ 13-2-112 Publication of consumer complaints.

(1) As used in this section:

(a) "Consumer complaint" means a complaint that:

(i) is provided to the division;

(ii) alleges facts relating to conduct that the division regulates under Section 13-2-102; and

(iii) may contain:

(A) information that identifies a respondent; and

(B) a narrative description of and information relevant to the conduct described in Subsection (1)(a)(ii).

(b) "Consumer narrative" means the narrative description contained in a consumer complaint as described in Subsection (1)(a)(iii)(B).

(d) "Respondent" means a person against whom a filer files a consumer complaint.

(2)

(a) A consumer complaint is a protected record as provided in Subsection 63G-2-305(87).

(b) In carrying out the division's duties, the division may not publicly disclose the identity of a person the division investigates unless:

(i) the person's identity becomes a matter of public record in an enforcement proceeding; or

(ii) the person consents to public disclosure.

(3) Notwithstanding Subsection (2):

(a) the division may reclassify a consumer complaint as public if:

(i)

(A) the consumer complaint is one of at least 10 consumer complaints filed with the division against the same person, alleging the same or similar conduct, and during the 12-month period immediately preceding the day on which the filer files the consumer complaint;

(B) the consumer complaint does not contain information that an agreement with another state or federal agency or a condition of participation in an investigation or litigation requires the division keep confidential;

(C) the consumer complaint is not classified as controlled, private, or protected as described in Sections 63G-2-302 through 63G-2-305, for a reason other than that identified by Subsection 63G-2-305(87); and

(D) access to the record is not restricted as described by Subsection 63G-2-201(3)(b); or

(ii) the division takes public enforcement action against a respondent as a result of the consumer complaint; and

(b) the division may disclose a consumer complaint to the respondent.

(4) In determining the number of complaints against the same person in accordance with Subsection (3)(a)(i)(A), the division may consider consumer complaints that are filed against multiple entities under common ownership as consumer complaints against the same person.

(5) A respondent's initial, written response to a consumer complaint that is public under Subsection (3) is a public record.

(6) Before making a consumer complaint that the division reclassifies as public under Subsection (3), or a response described in Subsection (5), available to the public, the division:

(a) shall redact from the consumer complaint or the response any information that would disclose:

(i) the filer's:

(A) address;

(B) social security number;

(D) email address; or

(E) telephone number; or

(ii) information similar in nature to the information described in Subsection (6)(a)(i); and

(b) may redact the filer's name and any other information that could, in the division's judgment, disclose the filer's identity.

(7) If the division discloses the consumer complaint to the respondent as described in Subsection (3)(b), the division may redact the filer's:

(a) bank account information;

(b) social security number;

(c) name and any other information that could, in the division's judgment, disclose the filer's identity, if the filer requests anonymity; and

(d) other information the disclosure of which constitutes a clearly unwarranted invasion of personal privacy.

(8) Nothing in this section precludes the division from disclosing a consumer complaint in accordance with Section 63G-2-201.

Chapter 5a Unfair Competition Act

§ 13-5a-101 Title.

This chapter is known as the "Unfair Competition Act."

§ 13-5a-102 Definitions.

As used in this chapter:

(1) "Control" means:

(a) ownership of more than 5% of the voting shares or ownership interests of an entity;

(b) the power to vote more than 5% of the voting shares of an entity; or

(2) "Depository institution" is as defined in Section 7-1-103.

(3) "Malicious cyber activity" means:

(a) the unlawful use of computing resources to intimidate or coerce others;

(b) accessing a computer without authorization or exceeding authorized access;

(c) willfully communicating, delivering, or causing the transmission of a program, information, code, or command without authorization or exceeding authorized access; and

(d) intentionally or recklessly:

(i) intends to defraud or materially cause damage or disruption to any computing resources or to the owner of any computing resources; or

(ii) intends to materially cause damage or disruption to any computing resources indirectly through another party's computing resources.

(4)

(a) Except as provided in Subsection (4)(b), "unfair competition" means an intentional business act or practice that:

(i)

(A) is unlawful, unfair, or fraudulent; and

(B) leads to a material diminution in value of intellectual property; and

(ii) is one of the following:

(A) malicious cyber activity;

(B) infringement of a patent, trademark, or trade name;

(D) predatory hiring practices.

(b) Notwithstanding Subsection (4)(a), "unfair competition" does not include the departure and hiring of an employee by a competitor.

§ 13-5a-103 Private action for unfair competition.

(1)

(a) Except as provided in Subsection (2), a person injured by unfair competition may bring a private cause of action against a person who engages in unfair competition.

(b) In an action under this Subsection (1), a person injured by unfair competition may recover:

(i) actual damages;

(ii) costs and attorney fees; and

(iii) if the court determines that the circumstances are appropriate, punitive damages.

(2) A person may not bring an action described in Subsection (1) against:

(a) a depository institution; or

(b) an entity that:

(i) controls a depository institution;

(ii) is controlled by an entity that controls a depository institution; or

(iii) is controlled by a depository institution.

Chapter 5b Integrated Health System Fair Practices Act

§ 13-5b-101 Title.

This chapter is known as the "Integrated Health System Fair Practices Act."

§ 13-5b-102 Definitions.

For purposes of this chapter:

(1) "Affiliate" means an organization that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with another organization.

(2) "Integrated health system" means an organization that directly, or through an affiliate or subsidiary:

(a) owns and operates one or more hospitals in the state; and

(b) offers health insurance to residents of the state.

(3) "Subsidiary" means an affiliate controlled:

(a) by a specified person;

(b) directly or indirectly; and

§ 13-5b-103 Contract negotiation standards.

(1) An integrated health system shall prohibit any employee or independent contractor of any division, subsidiary, or affiliate engaged in the business of health insurance from negotiating contracts on behalf of the integrated health care system's health care facilities, subject to licensing under Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection, with any other licensed health insurer in the state.

(2) An integrated health system shall prohibit the disclosure of contract pricing terms between the integrated health care system's health care facilities and other health insurers with the integrated health care system's divisions, subsidiaries, or affiliates which are engaged in the business of health insurance.

Chapter 7 Civil Rights

§ 13-7-1 Policy and purposes of act.

It is hereby declared that the practice of discrimination on the basis of race, color, sex, pregnancy, religion, ancestry, or national origin in business establishments or places of public accommodation or in enterprises regulated by the state endangers the health, safety, and general welfare of this state and its inhabitants; and that such discrimination in business establishments or places of public accommodation or in enterprises regulated by the state, violates the public policy of this state. It is the purpose of this act to assure all citizens full and equal availability of all goods, services and facilities offered by business establishments and places of public accommodation and enterprises regulated by the state without discrimination because of race, color, sex, pregnancy, religion, ancestry, or national origin. The rules of common law that statutes in derogation thereof shall be strictly construed has no application to this act. This act shall be liberally construed with a view to promote the policy and purposes of the act and to promote justice. The remedies provided herein are not exclusive but are in addition to any other remedies available at law or equity.

§ 13-7-2 Definitions.

As used in this chapter:

(1) "Enterprise regulated by the state" means:

(a) an institution subject to regulation under Title 70C, Utah Consumer Credit Code;

(b) a place of business that sells an alcoholic product at retail as provided in Title 32B, Alcoholic Beverage Control Act;

(d) a public utility subject to regulation under Title 54, Public Utilities.

(2) "Person" includes an individual, partnership, association, organization, corporation, labor union, legal representative, trustee, trustee in bankruptcy, receiver, and other organized groups of persons.

(3)

(a) "Place of public accommodation" includes:

(i) every place, establishment, or facility of whatever kind, nature, or class that caters or offers services, facilities, or goods to the general public for a fee or charge, except, an establishment that is:

(A) located within a building that contains not more than five rooms for rent or hire; and

(B) actually occupied by the proprietor of the establishment as the proprietor's residence; and

(ii) a place, establishment, or facility that caters or offers services, facilities, or goods to the general public gratuitously if the place, establishment, or facility receives any substantial governmental subsidy or support.

(b) "Place of public accommodation" does not include an institution, church, apartment house, club, or place of accommodation that is in nature distinctly private except to the extent that the institution, church, apartment house, club, or place of accommodation is open to the public.

(4) "Pregnancy" includes pregnancy or a pregnancy-related condition.

(5) "Pregnancy-related condition" includes breastfeeding, lactation, or a medical condition related to breastfeeding.

§ 13-7-3 Equal right in business establishments, places of public accommodation, and enterprises regulated by the state.

(1) All persons within the jurisdiction of this state are free and equal and are entitled to full and equal accommodations, advantages, facilities, privileges, goods and services in all business establishments and in all places of public accommodation, and by all enterprises regulated by the state of every kind whatsoever, without discrimination on the basis of race, color, sex, pregnancy, religion, ancestry or national origin.

(2) Nothing in this act shall be construed to deny any person the right to regulate the operation of a business establishment or place of public accommodation or an enterprise regulated by the state in a manner which applies uniformly to all persons without regard to race, color, sex, pregnancy, religion, ancestry, or national origin; or to deny any religious organization the right to regulate the operation and procedures of its establishments.

(3) Nothing in this act regulates business website accessibility.

§ 13-7-4 Business establishment, place of public accommodation, or enterprise regulated by the state denying rights deemed public nuisance -- Investigation and conciliation -- Action to enjoin -- Civil action for damages -- Expenses of defending action.

Any business establishment or place of public accommodation or enterprise regulated by the state in which a violation of the rights provided in Section 13-7-3 of this chapter occurs is a public nuisance. The operator of any such business establishment or place of public accommodation or enterprise regulated by the state is guilty of maintaining a public nuisance and may be enjoined as hereinafter provided.

(1) Upon application to the attorney general by any person denied the rights guaranteed by Section 13-7-3, the attorney general shall investigate and seek to conciliate the matter.

(2) An action to enjoin any nuisance defined in this section may be brought in the name of the state of Utah by the attorney general. Upon the trial of the cause, on finding that the material allegations of the complaint are true, the court shall order such nuisance to be abated, and enjoin all persons from maintaining or permitting such nuisance. When any injunction as herein provided has been granted it shall be binding upon the defendant and shall act as an injunction in personam against the defendant throughout the state.

(3) Any person who is denied the rights provided for in Section 13-7-3 shall have a civil action for damages and any other remedy available in law or equity against any person who denies that person the rights provided for in Section 13-7-3 or who aids, incites or conspires to bring about such denial.

(4) Any business establishment or place of public accommodation or enterprises regulated by the state charged with maintaining a public nuisance in violation of this chapter, which is determined or found not to be in violation of this chapter, may be awarded all actual and necessary expenses incurred in defending such action, as determined and approved by the court having jurisdiction of the matter.

§ 13-7-5 Equal right in business establishments, places of public accommodation, and enterprises regulated by the state regardless of immunity status.

(1) As used in this section, "immunity status" means an indication of whether an individual is immune to a disease, whether through vaccination or infection and recovery.

(2) All persons within the jurisdiction of this state are free and equal and are entitled to full and equal accommodations, advantages, facilities, privileges, goods, and services in all business establishments and in all places of public accommodation, and by all enterprises regulated by the state of every kind whatsoever, without discrimination on the basis of immunity status.

(3) Nothing in this section shall be construed to deny any person the right to regulate the operation of a business establishment or place of public accommodation or an enterprise regulated by the state in a manner which applies uniformly to all persons without regard to immunity status, or to deny any religious organization the right to regulate the operation and procedures of the religious organization's establishments.

(4)

(a) The provisions in Section 13-7-4 shall apply to enforcement and violations of this section.

(b) Upon application to the attorney general by any person denied the rights guaranteed by this section, the attorney general shall investigate and seek to conciliate the matter.

§ 13-7-6 Face coverings and qualified individuals.

(1) As used in this section:

(a) "Face covering" means a mask, shield, or other device that is intended to be worn in a manner to cover the mouth, nose, or face to prevent the spread of an infectious disease.

(b) "Health care facility" means the same as that term is defined in Section 78B-3-403.

(c) "Qualified individual" means an individual who experiences physical or emotional distress when wearing a face covering if the physical or emotional distress is caused by a diagnosed medical condition, mental health condition, or disability.

(2) Except as provided in Subsection (3)(a), a place of public accommodation or enterprise regulated by the state may not require a qualified individual to wear a face covering as a condition for entering a premises owned or operated by the entity described in this Subsection (2).

(3)

(a) Subject to Subsection (3)(b), a health care facility or a physician's office may require the use of face coverings in an area in the health care facility where patient care or treatment is provided.

(b) Consistent with applicable federal law, nothing in Subsection (3)(a) allows a health care facility or a physician's office to deny services to a qualified individual who is not able to wear a face covering.

Chapter 7a Breastfeeding Protection Act

§ 13-7a-101 Title.

This chapter is known as "Breastfeeding Protection Act."

§ 13-7a-102 Definitions.

As used in this chapter:

(1)

(a) "Breastfeed" means the act of a woman breastfeeding a child.

(b) "Breastfeed" includes lactation.

(2) "Breast pump" means a mechanical device used by a woman to express and collect milk from the woman's breasts.

§ 13-7a-103 Breastfeeding location and conduct.

A woman may breastfeed or use a breast pump in any place of public accommodation, as defined in Section 13-7-2.

Chapter 8 Unenforceable Agreements

§ 13-8-1 Construction industry -- Agreements to indemnify.

(1) For purposes of this section:

(a) "Construction contract" means a contract or agreement relative to the design, construction, alteration, repair, or maintenance of a building, structure, highway, appurtenance, appliance, or other improvement to real property, including moving, demolition, or excavating, connected to the construction contract between:

(i) a construction manager;

(ii) a general contractor;

(iii) a subcontractor;

(iv) a sub-subcontractor;

(v) a supplier; or

(vi) any combination of persons listed in Subsections (1)(a)(i) through (v).

(b) "Indemnification provision" means a covenant, promise, agreement or understanding in, in connection with, or collateral to a construction contract requiring the promisor to insure, hold harmless, indemnify, or defend the promisee or others against liability if:

(i) the damages arise out of:

(A) bodily injury to a person;

(B) damage to property; or

(ii) the damages are caused by or resulting from the fault of the promisee, indemnitee, others, or their agents or employees.

(2) Except as provided in Subsection (3), an indemnification provision in a construction contract is against public policy and is void and unenforceable.

(3) When an indemnification provision is included in a contract related to a construction project between an owner and party listed in Subsection (1)(a), in any action for damages described in Subsection (1)(b)(i), the fault of the owner shall be apportioned among the parties listed in Subsection (1)(a) pro rata based on the proportional share of fault of each of the parties listed in Subsection (1)(a), if:

(a) the damages are caused in part by the owner; and

(b) the cause of the damages defined in Subsection (1)(b)(i) did not arise at the time and during the phase of the project when the owner was operating as a party defined in Subsection (1)(a).

(4) This section may not be construed to affect or impair the obligations of contracts or agreements, that are in existence at the time this section or any amendment to this section becomes effective.

§ 13-8-2 Contractual limitations of liability arising from services of design professionals prohibited.

(1) As used in this section:

(a) "Agreement" means a contract, promise, covenant, or understanding.

(b) "Contractor" means any person engaged by an owner to develop or assist in the development of the owner's land.

(c) "Design professional" means an architect, engineer, or land surveyor. It includes any other person who, for a fee or other compensation, performs services similar to the services of an architect, engineer, or land surveyor in connection with the development of land.

(d) "Development" means the construction, alteration, repair, maintenance, or improvement of land, including any related moving, demolition, or excavation.

(e) "Land" means any real property, including any building, fixture, improvement, appurtenance, structure, road, highway, or other development.

(f) "Liability" includes liability arising by contract, indemnity, contribution, tort, or otherwise.

(g) "Owner" means the holder of any legal or equitable title or interest in property.

(h) "Subcontractor" means any person engaged by a contractor to develop or assist in the development of land.

(2) An agreement between an owner and a contractor may not limit the owner's or a design professional's liability to the contractor for any claim arising from services performed by the design professional in connection with the development of land. This subsection does not apply if the owner and the contractor are the same person or entity or are controlled by the same person or entity.

(3) An agreement between a contractor and a subcontractor may not limit the owner's or a design professional's liability to the subcontractor for any claim arising from services performed by the design professional in connection with the development of land.

(4) This section does not apply if the design professional is retained under a single contract to perform both the design and the construction of the project, such as in a design-build or turn-key project.

(5) This section may not be construed to affect any limitation of a design professional's liability to an owner or other design professional that may exist in an agreement between the owner and the design professional or between design professionals.

(6) This section does not affect or impair the obligations of agreements in existence as of May 1, 1988.

§ 13-8-3 Construction contracts and purchase orders -- Venue.

(1) As used in this section, "construction agreement" means a construction contract, subcontract, or purchase order for the design, construction, installation, or repair of an improvement to real property between a:

(a) construction manager;

(b) general contractor;

(d) sub-subcontractor;

(e) supplier; or

(f) any combination of the persons described under Subsections (1)(a) through (e).

(2) A provision in a construction agreement requiring a dispute arising under the agreement to be resolved in a forum outside of this state is void and unenforceable as against the public policy of this state if:

(a) one of the parties to the agreement is domiciled in this state; and

(b) work to be done and the equipment and materials to be supplied under the agreement involves a construction project in this state.

(3) This section applies to a construction agreement executed, renewed, or materially modified on or after May 5, 1997.

§ 13-8-4 Obligation to pay under construction contracts -- Rights of parties under contingent payment provisions.

(1) For purposes of this section:

(a) "Construction contract" means a contract or agreement to provide services, labor, or materials for the design, construction, installation, or repair of an improvement to real property located in Utah.

(b) "Contingent payment contract" means a construction contract between a contractor and a subcontractor that makes a payment from the contractor to the subcontractor contingent on the contractor receiving a corresponding payment from any other public or private party, including a private owner.

(c) "Contractor" means a person who is or may be awarded a contract for the construction, alteration, or repair of any building, structure, or improvement to real property.

(d) "Subcontractor" means any person engaged by a contractor to provide services, labor, or materials for the design, construction, installation, or repair of an improvement to real property and includes a trade contractor or specialty contractor.

(2) A party to a construction contract shall make all scheduled payments under the terms of the construction contract.

(3)

(a) The existence of a contingent payment contract is not a defense to a claim to enforce a preconstruction or construction lien under Title 38, Chapter 1a, Preconstruction and Construction Liens.

(b) Subsection (3) does not apply to contracts for private construction work for the building, improvement, repair, or remodeling of residential property consisting of four units or less.

(4) If a construction contract is a contingent payment contract:

(a) the subcontractor may request from the contractor the financial information that the contractor has received from the public or private party regarding:

(i) the project financing; and

(ii) the public or private party; and

(b) if information is requested by the subcontractor under Subsection (4)(a), the contractor shall provide the information prior to the subcontractor signing the construction contract between the contractor and the subcontractor.

(5) This section applies to a contract executed on or after May 5, 1997.

§ 13-8-5 Definitions -- Limitation on retention proceeds withheld -- Deposit in interest-bearing escrow account -- Release of proceeds -- Payment to subcontractors -- Penalty -- No waiver.

(1) As used in this section:

(a)

(i) "Construction contract" means a written agreement between the parties relative to the design, construction, alteration, repair, or maintenance of a building, structure, highway, appurtenance, appliance, or other improvements to real property, including moving, demolition, and excavating for nonresidential commercial or industrial construction projects.

(ii) If the construction contract is for construction of a project that is part residential and part nonresidential, this section applies only to that portion of the construction project that is nonresidential as determined pro rata based on the percentage of the total square footage of the project that is nonresidential.

(b) "Construction lender" means any person, including a bank, trust company, savings bank, industrial bank, land bank, safe deposit company, private banker, savings and loan association, credit union, cooperative bank, small loan company, sales finance company, investment company, or any other financial institution that advances money to a borrower for the purpose of making alterations or improvements to real property. A construction lender does not include a person or entity who is acting in the capacity of contractor, original contractor, or subcontractor.

(d) "Contractor" means a person who, for compensation other than wages as an employee, undertakes any work in a construction trade, as defined in Section 58-55-102 and includes:

(i) any person engaged as a maintenance person who regularly engages in activities set forth in Section 58-55-102 as a construction trade; or

(ii) a construction manager who performs management and counseling services on a construction project for a fee.

(e) "Original contractor" means the same as that term is defined in Section 38-1a-102.

(f) "Owner" means the person who holds any legal or equitable title or interest in property. Owner does not include a construction lender unless the construction lender has an ownership interest in the property other than solely as a construction lender.

(g) "Public agency" means any state agency or a county, city, town, school district, special district, special service district, or other political subdivision of the state that enters into a construction contract for an improvement of public property.

(h) "Retention payment" means release of retention proceeds as defined in Subsection (1)(i).

(i) "Retention proceeds" means money earned by a contractor or subcontractor but retained by the owner or public agency pursuant to the terms of a construction contract to guarantee payment or performance by the contractor or subcontractor of the construction contract.

(j) "Subcontractor" means the same as that term is defined in Section 38-1a-102.

(2)

(a) This section is applicable to all construction contracts relating to construction work or improvements entered into on or after July 1, 1999, between:

(i) an owner or public agency and an original contractor;

(ii) an original contractor and a subcontractor; and

(iii) subcontractors under a contract described in Subsection (2)(a)(i) or (ii).

(b) This section does not apply to a construction lender.

(3)

(a) Notwithstanding Section 58-55-603, the retention proceeds withheld and retained from any payment due under the terms of the construction contract may not exceed 5% of the payment:

(i) by the owner or public agency to the original contractor;

(ii) by the original contractor to any subcontractor; or

(iii) by a subcontractor.

(b) The total retention proceeds withheld may not exceed 5% of the total construction price.

(c) The percentage of the retention proceeds withheld and retained pursuant to a construction contract between the original contractor and a subcontractor or between subcontractors shall be the same retention percentage as between the owner and the original contractor if:

(i) the retention percentage in the original construction contract between an owner and the original contractor is less than 5%; or

(ii) after the original construction contract is executed but before completion of the construction contract the retention percentage is reduced to less than 5%.

(4)

(a) If any payment on a contract with a private contractor, firm, or corporation to do work for an owner or public agency is retained or withheld by the owner or the public agency, as retention proceeds, it shall be placed in an interest-bearing account and accounted for separately from other amounts paid under the contract.

(b) The interest accrued under Subsection (4)(a) shall be:

(i) for the benefit of the contractor and subcontractors; and

(ii) paid after the project is completed and accepted by the owner or the public agency.

(c) The contractor shall ensure that any interest accrued on the retainage is distributed by the contractor to subcontractors on a pro rata basis.

(d) Retention proceeds and accrued interest retained by an owner or public agency:

(i) are considered to be in a constructive trust for the benefit of the contractor and subcontractors who have earned the proceeds; and

(ii) are not subject to assignment, encumbrance, attachment, garnishment, or execution levy for the debt of any person holding the retention proceeds and accrued interest.

(5) Any retention proceeds retained or withheld pursuant to this section and any accrued interest shall be released pursuant to a billing statement from the contractor within 45 days from the later of:

(a) the date the owner or public agency receives the billing statement from the contractor;

(b) the date that a certificate of occupancy or final acceptance notice is issued to:

(i) the original contractor who obtained the building permit from the building inspector or public agency;

(ii) the owner or architect; or

(iii) the public agency;

(c) the date that a public agency or building inspector that has the authority to issue a certificate of occupancy does not issue the certificate but permits partial or complete occupancy or use of a construction project; or

(d) the date the contractor accepts the final pay quantities.

(6) If only partial occupancy of a construction project is permitted, any retention proceeds withheld and retained pursuant to this section and any accrued interest shall be partially released within 45 days under the same conditions as provided in Subsection (5) in direct proportion to the value of the part of the construction project occupied or used.

(7) The billing statement from the contractor as provided in Subsection (5)(a) shall include documentation of lien releases or waivers.

(8)

(a) Notwithstanding Subsection (3):

(i) if a contractor or subcontractor is in default or breach of the terms and conditions of the construction contract documents, plans, or specifications governing construction of the project, the owner or public agency may withhold from payment for as long as reasonably necessary an amount necessary to cure the breach or default of the contractor or subcontractor; or

(ii) if a project or a portion of the project has been substantially completed, the owner or public agency may retain until completion up to twice the fair market value of the work of the original contractor or of any subcontractor that has not been completed:

(A) in accordance with the construction contract documents, plans, and specifications; or

(B) in the absence of plans and specifications, to generally accepted craft standards.

(b) An owner or public agency that refuses payment under Subsection (8)(a) shall describe in writing within 45 days of withholding such amounts what portion of the work was not completed according to the standards specified in Subsection (8)(a).

(9)

(a) Except as provided in Subsection (9)(b), an original contractor or subcontractor who receives retention proceeds shall pay each of its subcontractors from whom retention has been withheld each subcontractor's share of the retention received within 10 days from the day that all or any portion of the retention proceeds is received:

(i) by the original contractor from the owner or public agency; or

(ii) by the subcontractor from:

(A) the original contractor; or

(B) a subcontractor.

(b) Notwithstanding Subsection (9)(a), if a retention payment received by the original contractor is specifically designated for a particular subcontractor, payment of the retention shall be made to the designated subcontractor.

(10)

(a) In any action for the collection of the retained proceeds withheld and retained in violation of this section, the successful party is entitled to:

(i) attorney fees; and

(ii) other allowable costs.

(b)

(i) Any owner, public agency, original contractor, or subcontractor who knowingly and wrongfully withholds a retention shall be subject to a charge of 2% per month on the improperly withheld amount, in addition to any interest otherwise due.

(ii) The charge described in Subsection (10)(b)(i) shall be paid to the contractor or subcontractor from whom the retention proceeds have been wrongfully withheld.

(11) A party to a construction contract may not require any other party to waive any provision of this section.

§ 13-8-6 Definitions -- Motor carrier indemnity agreements void.

(1) As used in this section, "motor carrier transportation contract" means any written agreement for:

(a) the transportation of personal property for compensation or hire;

(b) entry on real property for the purpose of packing, loading, unloading, or transporting personal property for compensation or hire; or

(c) a service incidental to an activity described in Subsection (1)(a) or (b) including storage of personal property for compensation or hire.

(2) Except as provided in Subsection (3), any provision in a motor carrier transportation contract that requires either party or either party's surety or insurer to indemnify or hold harmless the other party against liability for death, personal injury, or property damage caused in whole or in part by the negligence or intentional acts or omissions of the other party is void.

(3) This section does not affect any provision in a motor carrier transportation contract that requires either party or either party's surety or insurer to indemnify another person against liability for death, personal injury, or property damage that arises out of the fault of:

(a) the indemnitor; or

(b) the indemnitor's agents or representatives.

§ 13-8-7 Contract for design professional services -- Agreements to indemnify.

(1) As used in this section:

(a) "Design professional" means:

(i) an individual licensed under:

(A) Title 58, Chapter 3a, Architects Licensing Act;

(B) Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act; or

(ii) a nongovernmental entity engaged in the business of providing services that require a license described in Subsection (1)(a)(i).

(b) "Design professional services" means:

(i) professional services within the scope of the practice of architecture as defined in Section 58-3a-102;

(ii) professional engineering or professional land surveying as defined in Section 58-22-102; or

(iii) professional services within the scope of the practice of landscape architecture as defined in Section 58-53-102.

(c)

(i) "Design professional services contract" means a contract under which a design professional agrees to provide design professional services:

(A) to a governmental entity; or

(B) for an improvement owned or to be owned by a governmental entity.

(ii) "Design professional services contract" does not include a construction contract, as defined in Section 13-8-1.

(d) "Indemnification provision" means a covenant, promise, agreement, or understanding in, in connection with, or collateral to, a design professional services contract that requires the design professional to:

(i) indemnify or hold harmless any person from or against liability for damages other than liability for damages to the extent caused by or resulting from:

(A) the design professional's breach of contract, negligence, recklessness, or intentional misconduct; or

(B) the design professional's subconsultant's negligence;

(ii) defend any person from or against a claim alleging liability for damages, including a claim alleging:

(A) the design professional's breach of contract, negligence, recklessness, or intentional misconduct; or

(B) the design professional's subconsultant's negligence; or

(iii) reimburse any person for attorney fees or other costs incurred by the person in defending against a claim alleging liability for damages, except to the extent the attorney fees or costs were incurred due to:

(A) the design professional's breach of contract, negligence, recklessness, or intentional misconduct; or

(B) the design professional's subconsultant's negligence.

(e) "Governmental entity" means the same as that term is defined in Section 63G-7-102.

(f) "Improvement" means the same as that term is defined in Section 78B-2-225.

(g) "Subconsultant" means a person with whom a design professional contracts to provide a service related to or part of the design professional services that the design professional agrees to perform under a design professional services contract.

(2) An indemnification provision is void.

(3)

(a) A design professional shall perform design professional services under a design professional services contract consistent with the professional skill and care ordinarily provided by other design professionals:

(i) with the same or similar professional license; and

(ii) providing the same or similar design professional service:

(A) in the same or similar locality;

(B) at the same or similar time; and

(b)

(i) Except as provided in Subsection (3)(b)(ii), a design professional services contract may not establish a standard of care different from the standard of care described in Subsection (3)(a).

(ii) A design professional services contract may require a design professional to perform design professional services consistent with a specialized design expertise if the nature of the project that is the subject of the design professional services contract reasonably requires the specialized design expertise.

(c) A provision in a design professional services contract that purports to waive or conflicts with a provision of Subsection (3)(b) is void.

(4) The provisions of this section apply to a design professional services contract executed on or after May 8, 2018.

Chapter 9 Foreign Trade

§ 13-9-1 "Foreign-Trade Zones Act" defined.

As used in this act:

Foreign-Trade Zones Act means the act passed by the United States Congress identified as the Foreign-Trade Zones Act of June 18, 1934 (48 Stat. 998-1003; 19 U.S.C. 81a-81u), as amended by Public Law 566, 81st Congress, approved June 17, 1950, together with any subsequent amendments to that act and any rules and regulations promulgated pursuant to the authority granted by the act.

§ 13-9-2 Authority of state, county or municipality or public or private corporation to apply to establish foreign-trade zone.

The state of Utah or any county or municipality within the state of Utah, or a public or private corporation, or any combination thereof, may apply to the Foreign-Trade Zones Board, United States Department of Commerce, for the right to establish, operate, and maintain a foreign-trade zone as defined in the Foreign-Trade Zones Act.

Chapter 10 Unauthorized Recording Practices Act

§ 13-10-1 Title of chapter.

This chapter is known as the "Unauthorized Recording Practices Act."

§ 13-10-2 Purpose of chapter.

In enacting this chapter, it is the purpose of the Legislature to prevent the piracy of recorded materials by making it mandatory that certain copying of recorded materials be made only with the express consent of the owner.

§ 13-10-3 Definitions.

As used in this chapter:

(1) "Fixed" means embodied in a recording or other tangible medium of expression, by or under the authority of the author, so that the matter embodied in the recording or other tangible medium of expression is sufficiently permanent or stable to permit it to be perceived, reproduced, or otherwise communicated for a period of more than transitory duration.

(2) "Owner" means the person, corporation, partnership, or business association who owns the sounds fixed in a master phonograph record, master disc, master wire, master tape, master film, or other device used for reproducing recorded sounds on phonograph records, discs, wires, tapes, films, or other articles or materials in which sound is recorded and from which the transferred recorded sounds are directly or indirectly derived.

§ 13-10-4 Prohibited practices.

It is unlawful for any individual, partnership, corporation, or association:

(1) to knowingly transfer or cause to be transferred, directly or indirectly, for sale or profit within this state, without the express consent of the owner, by any means, any sounds recorded on a phonographic record, disc, wire, tape, film, or other article or material on which sounds are recorded onto any other phonograph record, disc, wire, tape, film, article, or material;

(2) to sell, distribute, circulate, or offer for sale, distribution or circulation, or cause to be sold, distributed, circulated, or possess for the purpose of sale, distribution, or circulation, within the state, for a consideration, any phonograph record, disc, wire, tape, film, or other article or material onto which such sounds have been transferred, with the knowledge that the sounds thereon have been transferred without the express consent of the owner; or

(3) to knowingly rent, make available, or permit the use of, or offer to rent, make available, or permit the use of, for a fee, rental, or any other form of compensation, any equipment or machinery for the purpose of enabling, aiding, or causing another to transfer without the consent of the owner any sounds recorded on a phonograph record, disc, wire, tape, film, or other article or material onto any other phonograph record, disc, wire, tape, film, article, or material.

§ 13-10-5 Exemptions.

(1) This chapter does not apply to:

(a) any person engaged in radio or television broadcasting or cable television who transfers, or causes to be transferred, any of the sounds referred to in Sections 13-10-3 and 13-10-4 (other than from the sound track of a motion picture) intended for, or in connection with, broadcast transmission or for archival purposes; or

(b) any person transferring any such sounds without any compensation being derived by this person or any other person from the transfer.

(2) This chapter shall neither enlarge nor diminish the rights of parties in civil litigation.

§ 13-10-6 Violation a misdemeanor.

Each violation of Section 13-10-4 is a class B misdemeanor.

§ 13-10-7 Application of provisions.

Sections 13-10-1 through 13-10-6 apply only to recorded sounds that were initially fixed before February 15, 1972.

§ 13-10-8 Failure to disclose the origin of a recording -- Penalty.

(1) For purposes of this section "recording" means:

(a) a tangible medium on which sounds or images are recorded or otherwise stored, including an original phonograph record, disc, tape, audio or video cassette, wire, film, or other similar medium; or

(b) a copy or reproduction that duplicates the original in whole or in part.

(2) A person is guilty of failure to disclose the origin of a recording if:

(a) the person commits any of the following acts for commercial advantage or private financial gain:

(i) offers a recording for sale, resale, or rent;

(ii) sells, resells, rents, leases, or lends a recording; or

(iii) possesses a recording for any of the purposes described in Subsection (2)(a)(i) or (ii); and

(b) the person knows that the recording does not contain the true name and address of the manufacturer in a prominent place on its cover, jacket, or label.

(3) A person who fails to disclose the origin of a recording under Subsection (2) is guilty of:

(a) a felony of the third degree if the offense involves 100 or more recordings, or the commercial equivalent of 100 or more recordings, during a 180-day period or if the person has previously been convicted of a violation of this section;

(b) a class A misdemeanor if the offense involves at least 10 recordings and fewer than 100 recordings, or the commercial equivalent of at least 10 recordings and fewer than 100 recordings, during a 180-day period; or

(c) a class B misdemeanor if the offense involves fewer than 10 recordings or fewer than the commercial equivalent of 10 recordings.

(4) In addition to the penalties provided in Subsection (3), a court may order a person who commits a violation of Subsection (2) to forfeit any recordings in the person's possession that served as the basis for the violation of Subsection (2).

Chapter 10a Music Licensing Practices Act

§ 13-10a-1 Title.

This act is known as the "Music Licensing Practices Act."

§ 13-10a-2 Definitions.

As used in this chapter:

(1) "Copyright laws of the United States" means those laws specified pursuant to Title 17, United States Code.

(2) "Copyright owner" does not include the owner of a copyright in a motion picture or audio-visual work or a part of a motion picture or audio-visual work.

(3) "Division" means the Division of Consumer Protection.

(4) "Performing rights society or organization" means an association, corporation, or other entity that licenses the nondramatic public performance of musical works on behalf of copyright owners, such as the American Society of Composers, Authors, and Publishers (ASCAP), Broadcast Music, Inc. (BMI), and SESAC, Inc.

(5) "Proprietor" means the owner of a retail establishment, restaurant, inn, bar, tavern, sports or entertainment facility, not for profit organization, or any other place of business or professional office located in this state in which:

(a) the public may assemble; and

(b) musical works may be performed, broadcast, or otherwise transmitted for the enjoyment of the members of the public there assembled.

(6) "Royalty" or "royalties" means the fees payable by a proprietor to a performing rights society for the nondramatic public performance of musical or other similar works.

§ 13-10a-3 Access to repertoire.

(1) Each performing rights society or organization licensing music in the state shall:

(a) maintain a current electronic list of the titles and names of the authors and publishers of all performed copyrighted musical works for which the performing rights society collects royalties on behalf of copyright owners;

(b) update the list at least quarterly; and

(2) Upon request, any person may review the list, in electronic form, of copyrighted works through the division.

(3) Each performing rights society or organization shall provide an electronic or printed copy of its most current lists of copyrighted musical works and members at cost, not including the cost of maintaining the database or any other overhead, to any person upon request.

(4) Each performing rights society or organization licensing music in this state shall establish and maintain a toll free telephone number which can be used to answer inquiries regarding specific musical works licensed by that performing rights society and the copyright owners represented by the performing rights society or organization.

§ 13-10a-4 Notification of rights.

No performing rights society or organization may enter into, or offer to enter into, a contract for the payment of royalties by a proprietor unless at the time of the offer, or any time thereafter, but no later than 72 hours prior to the execution of the contract, it provides to the proprietor, in writing, a schedule of the rates and terms of royalties under the contract, including:

(1) any sliding scale, discounts, or reductions in fees on any basis for which the proprietor may be eligible; and

(2) any scheduled increases or decreases in fees during the term of the contract.

§ 13-10a-5 Contract requirements.

(1) Beginning July 1, 1998, each contract for the payment of royalties between a proprietor and a performing rights society or organization executed, issued, or renewed in the state shall:

(a) be in writing;

(b) be signed by both parties to the contract; and

(i) the proprietor's name and business address and the name and location of each place of business to which the contract applies;

(ii) the name and business address of the performing rights society or organization;

(iii) the duration of the contract; and

(iv) the schedule of rates and terms of royalties to be collected under the contract, including any sliding scale, discount, or schedule for any increase or decrease of those rates for the duration of the contract.

(2)

(a) Nothing in this act shall be construed to affect any contract signed before July 1, 1998.

(b) All contracts signed before July 1, 1998, that are renewed after that date are subject to the requirements of this act.

§ 13-10a-6 Jurisdiction of court action.

An action may be brought or a counterclaim may be asserted in a court of competent jurisdiction against a performing rights society to enjoin a violation of this act and to recover actual damages sustained as a result of that violation.

§ 13-10a-7 Provisions of chapter not exclusive.

The remedies, duties, and prohibitions of this chapter are not exclusive and are in addition to all other causes of actions, remedies, and penalties provided by law.

§ 13-10a-8 Exemptions.

(1) This act does not apply to contracts between performing rights societies or organizations and broadcasters licensed by the Federal Communications Commission, unless any such society is licensed by the Federal Communications Commission.

(2) This act does not apply to investigations by law enforcement agencies or other persons with respect to suspected violations of Subsection 13-10-8(2)(b).

Chapter 10b Unlawful Recording of a Motion Picture

Part 1 General Provisions

§ 13-10b-101 Title.

This chapter is known as "Unlawful Recording of a Motion Picture."

§ 13-10b-102 Definitions.

As used in this chapter:

(1) "Audiovisual recording function" means the capability of a device to record or transmit a motion picture or any part of the motion picture by means of any technology.

(2) "Motion picture theater" means a movie theater, screening room, or other venue that is being utilized primarily for the exhibition of a motion picture at the time of the commission of an offense under Section 13-10b-201.

(3) "Owner or employee" means the owner or lessee of a motion picture theater, or the authorized agent or employee of the owner or lessee.

Part 2 Penalties

§ 13-10b-201 Unlawful recording of a motion picture -- Penalties.

(1) It is unlawful for any individual to knowingly operate the audiovisual recording function of any camcorder or similar device in a motion picture theater:

(a) while a motion picture is being exhibited; and

(b) without the consent of the motion picture theater owner or operator.

(2)

(a) A violation of this section is a class A misdemeanor.

(b) A second or subsequent violation of this section is a third degree felony.

Part 3 Detention and Immunity

§ 13-10b-301 Detention of suspect by owner or employee.

(1) Any owner or employee who has probable cause to believe that an individual has unlawfully recorded a motion picture under Section 13-10b-201 may detain the individual, on or off the premises of the motion picture theater, in a reasonable manner and for a reasonable length of time to:

(a) make reasonable inquiry as to whether the individual has in his possession a device that may reasonably be used in violation of Section 13-10b-201;

(b) request identification;

(d) make a reasonable request of the individual to place or keep in full view any device that the employer or employee has reason to believe the individual may have used in violation of Section 13-10b-201; and

(e)

(i) inform a peace officer of the detention of the individual and surrender that individual to the custody of a peace officer; or

(ii) in the case of a minor, inform a peace officer, the parents, or the legal guardian of this detention and to surrender custody of the minor to the responding individual.

(2) An employer or employee may make a detention under Subsection (1) off the premises of the motion picture theater only if the detention is pursuant to the immediate pursuit of the individual that the employer or employee has reason to believe has violated Section 13-10b-201.

§ 13-10b-302 Immunity of owner or employee who contacts law enforcement.

The owner or employee of a motion picture theater who advises a law enforcement agency of an alleged violation of this section is not liable in any civil action that arises out of detaining an individual under Section 13-10b-301 whom the owner or employee reasonably believes to have violated Section 13-10b-201, unless the plaintiff shows by clear and convincing evidence that the measures were manifestly unreasonable or the period of detention was unreasonably long.

Part 4 Law Enforcement Actions

§ 13-10b-401 Law enforcement functions exempt.

This part does not prohibit any lawful investigation or collection of evidence by a federal, state, or local law enforcement or investigative agency by means of any audiovisual recording device used in a motion picture theater as part of investigative, protective, or law enforcement functions.

Chapter 11 Utah Consumer Sales Practices Act

§ 13-11-1 Citation of act.

This act shall be known and may be cited as the "Utah Consumer Sales Practices Act."

§ 13-11-2 Construction and purposes of act.

This act shall be construed liberally to promote the following policies:

(1) to simplify, clarify, and modernize the law governing consumer sales practices;

(2) to protect consumers from suppliers who commit deceptive and unconscionable sales practices, including by disgorging money or any thing of value obtained in violation of this chapter;

(3) to encourage the development of fair consumer sales practices;

(4) to make state regulation of consumer sales practices consistent with the policies of the Federal Trade Commission Act relating to consumer protection;

(5) to make uniform the law, including the administrative rules, with respect to the subject of this chapter among those states that enact similar laws; and

(6) to recognize and protect suppliers that in good faith comply with the provisions of this chapter.

§ 13-11-3 Definitions.

As used in this chapter:

(1) "Charitable solicitation" means any request directly or indirectly for money, credit, property, financial assistance, or any other thing of value on the plea or representation that it will be used for a charitable purpose. A charitable solicitation may be made in any manner, including:

(a) any oral or written request, including a telephone request;

(b) the distribution, circulation, or posting of any handbill, written advertisement, or publication; or

(c) the sale of, offer or attempt to sell, or request of donations for any book, card, chance, coupon, device, magazine, membership, merchandise, subscription, ticket, flower, flag, button, sticker, ribbon, token, trinket, tag, souvenir, candy, or any other article in connection with which any appeal is made for any charitable purpose, or where the name of any charitable organization or movement is used or referred to as an inducement or reason for making any purchase donation, or where, in connection with any sale or donation, any statement is made that the whole or any part of the proceeds of any sale or donation will go to or be donated to any charitable purpose. A charitable solicitation is considered complete when made, whether or not the organization or person making the solicitation receives any contribution or makes any sale.

(2)

(a) "Consumer transaction" means a sale, lease, assignment, award by chance, or other written or oral transfer or disposition of goods, services, or other property, both tangible and intangible (except securities and insurance) to, or apparently to, a person for:

(i) primarily personal, family, or household purposes; or

(ii) purposes that relate to a business opportunity that requires:

(A) expenditure of money or property by the person described in Subsection (2)(a); and

(B) the person described in Subsection (2)(a) to perform personal services on a continuing basis and in which the person described in Subsection (2)(a) has not been previously engaged.

(b) "Consumer transaction" includes:

(i) any of the following with respect to a transfer or disposition described in Subsection (2)(a):

(A) an offer;

(B) a solicitation;

(D) performance of an agreement; or

(ii) a charitable solicitation.

(3) "Division" means the Division of Consumer Protection.

(4) "Final judgment" means a judgment, including any supporting opinion, that determines the rights of the parties and concerning which appellate remedies have been exhausted or the time for appeal has expired.

(5) "Supplier" means a seller, lessor, assignor, offeror, broker, or other person who regularly solicits, engages in, or enforces consumer transactions, whether or not the person deals directly with the consumer.

(6) "Vulnerable adult" means the same as that term is defined in Section 26B-6-201.

§ 13-11-4 Deceptive act or practice by supplier.

(1) A supplier that engages in a deceptive act or practice in connection with a consumer transaction violates this chapter, whether the deceptive act or practice occurs before, during, or after the transaction.

(2) Without limiting the scope of Subsection (1), a supplier commits a deceptive act or practice if the supplier:

(a) indicates that the subject of a consumer transaction has sponsorship, approval, performance characteristics, accessories, uses, or benefits, if the subject has not;

(b) indicates that the subject of a consumer transaction is of a particular standard, quality, grade, style, or model, if the subject is not;

(c) indicates that the subject of a consumer transaction is new, or unused, if the subject is not, or has been used to an extent that is materially different from the fact;

(d) indicates that the subject of a consumer transaction is available to the consumer for a reason that does not exist, including any of the following reasons falsely used in an advertisement:

(i) "going out of business";

(ii) "bankruptcy sale";

(iii) "lost our lease";

(iv) "building coming down";

(v) "forced out of business";

(vi) "final days";

(vii) "liquidation sale";

(viii) "fire sale";

(ix) "quitting business"; or

(x) an expression similar to any of the expressions in Subsections (2)(d)(i) through (ix);

(e) indicates that the subject of a consumer transaction has been supplied in accordance with a previous representation, if the subject has not;

(f) indicates that the subject of a consumer transaction will be supplied in greater quantity than the supplier intends;

(g) indicates that replacement or repair is needed, if the replacement or repair is not;

(h) indicates that a specific price advantage exists, if the specific price advantage does not;

(i) indicates that the supplier has a sponsorship, approval, license, certification, or affiliation the supplier does not have;

(j)

(i) indicates that a consumer transaction involves or does not involve a warranty, a disclaimer of warranties, particular warranty terms, or other rights, remedies, or obligations, if the representation is false; or

(ii) fails to honor a warranty or a particular warranty term;

(k) indicates that the consumer will receive a rebate, discount, or other benefit as an inducement for entering into a consumer transaction in return for giving the supplier the names of prospective consumers or otherwise helping the supplier to enter into other consumer transactions, if receipt of the benefit is contingent on an event occurring after the consumer enters into the transaction;

(l) after receipt of payment for goods or services, fails to ship the goods or furnish the services within the time advertised or otherwise represented or, if no specific time is advertised or represented, fails to ship the goods or furnish the services within 30 days, unless within the applicable time period the supplier provides the buyer with the option to:

(i) cancel the sales agreement and receive a refund of all previous payments to the supplier if the refund is mailed or delivered to the buyer within 10 business days after the day on which the seller receives written notification from the buyer of the buyer's intent to cancel the sales agreement and receive the refund; or

(ii) extend the shipping date to a specific date proposed by the supplier;

(m) except as provided in Subsection (3)(b), fails to furnish a notice meeting the requirements of Subsection (3)(a) of the purchaser's right to cancel a direct solicitation sale within three business days of the time of purchase if:

(i) the sale is made other than at the supplier's established place of business pursuant to the supplier's personal contact, whether through mail, electronic mail, facsimile transmission, telephone, or any other form of direct solicitation; and

(ii) the sale price exceeds $25;

(n) promotes, offers, or grants participation in a pyramid scheme as defined under Title 76, Chapter 17, Part 3, Offenses Concerning Pyramid Schemes;

(o) in connection with a charitable solicitation:

(i) falsely indicates that:

(A) the supplier is affiliated with a charitable organization;

(B) the supplier is an employee, officer, or representative of a public safety agency;

(D) a charitable contribution will be provided to a given charitable organization;

(E) providing a charitable contribution has an additional benefit, including a tax benefit; or

(F) the recipient of the solicitation has previously contributed to a given charitable organization;

(ii) uses a fictitious name or a name the supplier is not authorized to use; or

(iii) with intent to deceive:

(A) uses a name that is substantially similar to that of another charitable organization; or

(B) falsely indicates that a charitable contribution will be used for a particular purpose;

(p) if a consumer indicates the consumer's intention of making a claim for a motor vehicle repair against the consumer's motor vehicle insurance policy:

(i) commences the repair without first giving the consumer oral and written notice of:

(A) the total estimated cost of the repair; and

(B) the total dollar amount the consumer is responsible to pay for the repair, which dollar amount may not exceed the applicable deductible or other copay arrangement in the consumer's insurance policy; or

(ii) requests or collects from a consumer an amount that exceeds the dollar amount a consumer was initially told the consumer was responsible to pay as an insurance deductible or other copay arrangement for a motor vehicle repair under Subsection (2)(p)(i), even if that amount is less than the full amount the motor vehicle insurance policy requires the insured to pay as a deductible or other copay arrangement, unless:

(A) the consumer's insurance company denies that coverage exists for the repair, in which case, the full amount of the repair may be charged and collected from the consumer; or

(B) the consumer misstates, before the repair is commenced, the amount of money the insurance policy requires the consumer to pay as a deductible or other copay arrangement, in which case, the supplier may charge and collect from the consumer an amount that does not exceed the amount the insurance policy requires the consumer to pay as a deductible or other copay arrangement;

(q) includes in any contract, receipt, or other written documentation of a consumer transaction, or any addendum to any contract, receipt, or other written documentation of a consumer transaction, any confession of judgment or any waiver of any of the rights to which a consumer is entitled under this chapter;

(r) charges a consumer for a consumer transaction or a portion of a consumer transaction that has not previously been agreed to by the consumer;

(s) solicits or enters into a consumer transaction with an individual who lacks the mental ability to comprehend the nature and consequences of:

(i) the consumer transaction; or

(ii) the individual's ability to benefit from the consumer transaction;

(t) solicits for the sale of a product or service by providing a consumer with an unsolicited check or negotiable instrument the presentment or negotiation of which obligates the consumer to purchase a product or service, unless the supplier is:

(i) a depository institution under Section 7-1-103;

(ii) an affiliate of a depository institution; or

(iii) an entity regulated under Title 7, Financial Institutions Act;

(u) sends an unsolicited mailing to a person that appears to be a billing, statement, or request for payment for a product or service the person has not ordered or used, or that implies that the mailing requests payment for an ongoing product or service the person has not received or requested;

(v) issues a gift certificate, instrument, or other record in exchange for payment to provide the bearer, upon presentation, goods or services in a specified amount without printing in a readable manner on the gift certificate, instrument, packaging, or record any expiration date or information concerning a fee to be charged and deducted from the balance of the gift certificate, instrument, or other record;

(w) misrepresents the geographical origin or location of the supplier's business;

(x) fails to comply with the restrictions of Section 15-10-201 on automatic renewal provisions;

(y) violates Section 13-59-201;

(z) fails to comply with the restrictions of Subsection 13-54-202(2);

(aa) states or implies that a registration or application administered or enforced by the division is an endorsement, sanction, or approval by the division or a governmental agency or office;

(bb) fails to comply with the requirements of Section 71A-4-102 regarding assistance to veterans for benefits; or

(cc) fails to comply with the requirements of Chapter 82, Virtual Currency Kiosk Regulation.

(3)

(a) The notice required by Subsection (2)(m) shall:

(i) be a conspicuous statement written in dark bold with at least 12-point type on the first page of the purchase documentation; and

(ii) read as follows: "YOU, THE BUYER, MAY CANCEL THIS CONTRACT AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY (or time period reflecting the supplier's cancellation policy but not less than three business days) AFTER THE DATE OF THE TRANSACTION OR RECEIPT OF THE PRODUCT, WHICHEVER IS LATER."

(b) A supplier is exempt from the requirements of Subsection (2)(m) if the supplier's cancellation policy:

(i) is communicated to the buyer; and

(ii) offers greater rights to the buyer than Subsection (2)(m).

(4)

(a) A gift certificate, instrument, or other record that does not print an expiration date in accordance with Subsection (2)(v) does not expire.

(b) A gift certificate, instrument, or other record that does not include printed information concerning a fee to be charged and deducted from the balance of the gift certificate, instrument, or other record is not subject to the charging and deduction of the fee.

(c) Subsections (2)(v) and (4)(b) do not apply to a gift certificate, instrument, or other record useable at multiple, unaffiliated sellers of goods or services if an expiration date is printed on the gift certificate, instrument, or other record.

§ 13-11-4.1 Targeted solicitations involving financial information -- Restrictions.

(1) As used in this section:

(a) "Account holder" means a person for whom a personal account is held by a financial institution.

(b) "Financial institution" means:

(i) a state or federally chartered:

(A) bank;

(B) savings and loan association;

(D) industrial bank; or

(E) credit union;

(ii) any other institution under the jurisdiction of the commissioner of Financial Institutions as described in Title 7, Financial Institutions Act; or

(iii) a person who:

(A) is subject to Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act; and

(B) engages in the business of residential mortgage loans as defined in Section 61-2c-102.

(c)

(i) "Specific account information" means information that is:

(A) relative to the account of an account holder, in addition to the name of the account holder; and

(B) not provided by the financial institution that holds the account holder's account to the person offering a targeted solicitation.

(ii) "Specific account information" includes:

(A) a loan number;

(B) a loan amount; or

(d) "Targeted solicitation" means any written or oral advertisement or solicitation for products or services that:

(i) is addressed to an account holder;

(ii) contains specific account information;

(iii) is offered by a supplier that is not sponsored by or affiliated with the financial institution that holds the account holder's account; and

(iv) is not authorized by the financial institution that holds the account holder's account.

(2)

(a) A supplier who is not the financial institution of an account holder may not represent, directly or indirectly, that the supplier is the financial institution of the account holder.

(b) If a presiding officer or court determines appropriate after considering other relevant factors, the following actions by a supplier who is not the financial institution of an account holder establish a presumption that the supplier is representing that the supplier is the financial institution of the account holder in violation of Subsection (2)(a):

(i) the use or reference to the name, trade name, or trademark of the financial institution of the account holder, when sending a targeted solicitation, unless the supplier has written authorization from the financial institution;

(ii) the placement of specific account information on the outside of an envelope, visible through the envelope window, or on a postcard, when sending a targeted solicitation by direct mail; or

(iii) the placement of specific account information in the subject line, when sending a targeted solicitation by email.

(3)

(a) A targeted solicitation, if offered in writing, shall include a clear and conspicuous statement in bold type on the front page of the document containing:

(i) the name, address, and telephone number of the supplier offering the targeted solicitation; and

(ii) a statement indicating that the supplier offering the targeted solicitation is not sponsored by or affiliated with the financial institution that holds the account holder's account.

(b) If the targeted solicitation is offered orally, the supplier offering the targeted solicitation shall verbally communicate the statement described in Subsection (3)(a) at the time the oral solicitation is offered to the account holder.

(4) A supplier who violates this section commits a deceptive act or practice under Subsection 13-11-4(1).

§ 13-11-5 Unconscionable act or practice by supplier.

(1) A supplier that commits an unconscionable act or practice in connection with a consumer transaction violates this chapter whether the unconscionable act or practice occurs before, during, or after the transaction.

(2)

(a) The unconscionability of an act or practice is a question of law for a court with jurisdiction.

(b) If it is claimed or appears to the court that an act or practice may be unconscionable, the parties shall be given a reasonable opportunity to present evidence as to the act or practice's setting, purpose, and effect to aid the court in making the court's determination.

(3) In determining whether an act or practice is unconscionable, the court shall consider the circumstances that the supplier knew or had reason to know.

§ 13-11-6 Service of process.

(1) In addition to any other method provided by rule or statute, personal jurisdiction over a supplier may be acquired in a civil action or proceeding instituted in a court with jurisdiction by the service of process as provided in Subsection (3).

(2)

(a) A supplier that engages in any act or practice in this state governed by this chapter, or engages in a consumer transaction subject to this chapter, may designate an agent upon whom service of process may be made in the state.

(b) A supplier shall make a designation of an agent under Subsection (2)(a) in writing and file the designation with the Division of Corporations and Commercial Code.

(c) An agent designated under this Subsection (2) shall be a resident of or a corporation authorized to do business in the state.

(3)

(a) Subject to Subsection (3)(b), process upon a supplier may be served as provided in Section 16-17-301 if:

(i) a designation is not made and filed under Subsection (2); or

(ii) process cannot be served in the state upon the designated agent.

(b) Service upon a supplier is not effective unless the plaintiff promptly mails a copy of the process and pleadings by registered or certified mail to the supplier at the supplier's last reasonably ascertainable address.

(i) with the clerk of the court; and

(ii) on or before the return day of the process, if any, or within any future time the court allows.

§ 13-11-7 Duties of division -- Civil penalty for violation of restraining or injunctive orders.

(1) The division shall:

(a) enforce this chapter throughout the state;

(b) cooperate with state and local officials, officials of other states, and officials of the federal government in the administration of comparable statutes;

(c) inform consumers and suppliers on a continuing basis of the provisions of this chapter and of acts or practices that violate this chapter;

(d) receive and act on complaints; and

(e) maintain a public file of final judgments rendered under this chapter that have been either reported officially or made available for public dissemination under Subsection (1)(c), final consent judgments, and to the extent the division considers appropriate, assurances of voluntary compliance.

(2)

(a) On motion of the division, or on the court's own motion, the court may impose a civil penalty of not more than $5,000 for each day a temporary restraining order, preliminary injunction, or permanent injunction issued under this chapter is violated, if the supplier received notice of the restraining or injunctive order.

(b) Civil penalties imposed under this section shall be paid to the General Fund.

§ 13-11-8 Powers of division.

In addition to the authority described in Sections 13-2-106 and 13-2-107, the division may conduct research, hold public hearings, make inquiries, and publish studies relating to consumer sales acts or practices.

§ 13-11-9 Rule-making requirements.

In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division shall make rules that specify acts or practices that violate Subsection 13-11-4(1).

§ 13-11-16 Investigatory powers of the division.

(1) If the division has reason to believe that a person has engaged in, is engaging in, or is about to engage in an act or practice that violates this chapter, the division may investigate and otherwise act in accordance with Sections 13-2-106 and 13-2-107 and other provisions of this chapter.

(2)

(a) If the matter that the division subpoenas is located outside this state, the person subpoenaed may either make the matter available to the division at a convenient location within the state or pay the reasonable and necessary expenses for the division or the division's representative to examine the matter at the place where the matter is located.

(b) The division may designate representatives, including officials of the state in which the matter is located, to inspect the matter on the division's behalf, and may respond to similar requests from officials of other states.

(3) Upon failure of a person without lawful excuse to obey a subpoena and upon reasonable notice to all persons affected, the division may apply to the court for an order compelling compliance.

(4) In the event a witness asserts a privilege against self-incrimination, testimony and evidence from the witness may be compelled in accordance with Title 77, Chapter 22b, Grants of Immunity.

§ 13-11-17 Actions by the division.

(1) The division may bring an action in a court with jurisdiction to:

(a) obtain a declaratory judgment that an act or practice violates this chapter;

(b) enjoin, in accordance with the principles of equity, a supplier that has violated, is violating, or is otherwise likely to violate this chapter;

(d) recover, for each violation, restitution for actual damages, or obtain relief under Subsection (2)(b), on behalf of impacted consumers; and

(e) obtain a fine in an amount determined after considering the factors in Subsection (6).

(2)

(a) The division may bring a class action on behalf of consumers for the actual damages caused by an act or practice specified as violating this chapter in a rule adopted by the division under Section 13-11-9 before the consumer transactions on which the action is based, or declared to violate Section 13-11-4 or 13-11-5 by final judgment of courts of general jurisdiction and appellate courts of this state that was either reported officially or made available for public dissemination under Subsection 13-11-7(1)(c) by the division 10 days before the consumer transactions on which the action is based, or, with respect to a supplier who agreed to a consent judgment, was prohibited specifically by the terms of a consent judgment that became final before the consumer transactions on which the action is based.

(b)

(i) On motion of the division and without bond in an action under this Subsection (2), the court may make appropriate orders, including appointment of a master or receiver or sequestration of assets, but only if it appears that the defendant is threatening or is about to remove, conceal, or dispose of the defendant's property to the damage of persons for whom relief is requested.

(ii) An appropriate order described in Subsection (2)(b)(i) may include an order to:

(A) reimburse consumers found to have been damaged;

(B) carry out a transaction in accordance with consumers' reasonable expectations;

(D) impose a fine in an amount determined after considering the factors listed in Subsection (6); or

(E) grant other appropriate relief.

(iii) The court may assess the expenses of a master or receiver against a supplier.

(c) If an act or practice that violates this chapter unjustly enriches a supplier and damages can be computed with reasonable certainty, damages recoverable on behalf of consumers who cannot be located with due diligence shall be transferred to the state treasurer in accordance with Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act.

(d) If a supplier shows by a preponderance of the evidence that a violation of this chapter resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid the error, recovery under this Subsection (2) is limited to the amount, if any, by which the supplier was unjustly enriched by the violation.

(3)

(a)

(i) The division may terminate an investigation or an action other than a class action upon acceptance of the supplier's written assurance of voluntary compliance with this chapter.

(ii) Acceptance of an assurance may be conditioned on a commitment to reimburse consumers or take other appropriate corrective action.

(b)

(i) An assurance is not evidence of a prior violation of this chapter.

(ii) Unless an assurance has been rescinded by agreement of the parties or voided by a court for good cause, subsequent failure to comply with the terms of an assurance is prima facie evidence of a violation.

(4)

(a) In addition to other penalties and remedies set out under this chapter, and in addition to the division's other enforcement powers under Chapter 2, Division of Consumer Protection, the division director may issue a cease and desist order and impose an administrative fine of up to $2,500 for each violation of this chapter.

(b) All money received through fines imposed under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-109.

(5)

(a) Within 30 days after agency review or, if appealed to a court with jurisdiction, 30 days after judicial review of a final division order imposing an administrative fine, the supplier on whom the fine is imposed shall pay the fine in full.

(b) The unpaid amount of a fine is increased by 10%:

(i) if the fine has not been paid in full within 60 days after the final division order imposing the fine; and

(ii) unless the division waives the 10% increase in a stipulated payment plan.

(6) A court shall determine the fine imposed under Subsection (1)(e) or Subsection (2)(b)(ii)(D) after considering the following factors:

(a) the seriousness, nature, circumstances, extent, and persistence of the conduct constituting the violation, including whether the supplier acted knowingly or intentionally to deceive;

(b) the harm to other persons resulting either directly or indirectly from the violation;

(d) efforts by the supplier to prevent occurrences of the violation;

(e) efforts by the supplier to mitigate the harm caused by the violation, including a reimbursement made to a consumer injured by the act of the supplier;

(f) the history of previous violations by the supplier;

(g) the need to deter the supplier or other suppliers from committing the violation in the future;

(h) whether the individual harmed by the violation was a vulnerable adult; and

(i) other matters as justice may require.

§ 13-11-18 Noncompliance by supplier subject to other state supervision -- Cooperation of division and other official or agency.

(1)

(a) If the division receives a complaint or other information relating to noncompliance with this chapter by a supplier that is subject to other supervision in this state, the division shall inform the official or agency having that supervision.

(b) The division may request information about a supplier from the official or agency.

(2)

(a) The division and any other official or agency in this state having supervisory authority over a supplier shall consult and assist each other in maintaining compliance with this chapter.

(b) Within the scope of the division's authority, the division and any other official or agency in this state may jointly or separately make investigations, prosecute suits, and take other official action the division considers appropriate.

§ 13-11-19 Actions by consumer.

(1) Whether a consumer seeks or is entitled to damages or otherwise has an adequate remedy at law, the consumer may bring an action to:

(a) obtain a declaratory judgment that an act or practice violates this chapter; and

(b) enjoin, in accordance with the principles of equity, a supplier that has violated, is violating, or is likely to violate this chapter.

(2) A consumer who suffers loss as a result of a violation of this chapter may recover actual damages plus court costs, but not in a class action except as provided in this section.

(3) Whether a consumer seeks or is entitled to recover damages or has an adequate remedy at law, the consumer may bring a class action for declaratory judgment, an injunction, and appropriate ancillary relief against an act or practice that violates this chapter.

(4)

(a) A consumer who suffers loss as a result of a violation of this chapter may bring a class action for the actual damages caused by an act or practice specified as violating this chapter by a rule adopted by the division under Section 13-11-9 before the consumer transactions on which the action is based, or declared to violate Section 13-11-4 or 13-11-5 by a final judgment of the appropriate court or courts of general jurisdiction and appellate courts of this state that was either officially reported or made available for public dissemination under Subsection 13-11-7(1)(c) by the division 10 days before the consumer transactions on which the action is based, or with respect to a supplier who agreed to a consent judgment, was prohibited specifically by the terms of a consent judgment that became final before the consumer transactions on which the action is based.

(b) If an act or practice that violates this chapter unjustly enriches a supplier and the damages can be computed with reasonable certainty, damages recoverable on behalf of consumers who cannot be located with due diligence shall be transferred to the state treasurer in accordance with Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act.

(c) If a supplier shows by a preponderance of the evidence that a violation of this chapter resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid the error, recovery under this section is limited to the amount, if any, in which the supplier was unjustly enriched by the violation.

(5) Except for services performed by the division, the court may award to the prevailing party a reasonable attorney's fee limited to the work reasonably performed if:

(a) the consumer complaining of the act or practice that violates this chapter has brought or maintained an action the consumer knew to be groundless; or a supplier has committed an act or practice that violates this chapter; and

(b) an action under this section has been terminated by a judgment or required by the court to be settled under Subsection 13-11-21(1)(a).

(6) Except for consent judgment entered before testimony is taken, a final judgment in favor of the division under Section 13-11-17 is admissible as prima facie evidence of the facts on which an action is based in later proceedings under this section against the same person or a person in privity with the person against which the judgment is entered.

(7) When a judgment under this section becomes final, the prevailing party shall mail a copy to the division for inclusion in the public file maintained under Subsection 13-11-7(1)(e).

§ 13-11-20 Class actions.

(1) An action may be maintained as a class action under this act only if:

(a) the class is so numerous that joinder of all members is impracticable;

(b) there are questions of law or fact common to the class;

(d) the representative parties will fairly and adequately protect the interests of the class; and

(e)

(i) the prosecution of separate actions by or against individual members of the class would create a risk of:

(A) inconsistent or varying adjudications with respect to individual members of the class which would establish incompatible standards of conduct for the party opposing the class; or

(B) adjudications with respect to individual members of the class that would as a practical matter dispose of the interests of the other members not parties to the adjudications or substantially impair or impede their ability to protect the other members' interests;

(ii) the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole; or

(iii) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy.

(2) The matters pertinent to the findings under Subsection (1)(e)(iii) include:

(a) the interest of members of the class in individually controlling the prosecution or defense of separate actions;

(b) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class;

(d) the difficulties likely to be encountered in the management of a class action.

(3)

(a) As soon as practicable after the commencement of an action brought as a class action, the court shall determine by order whether the action is to be so maintained.

(b) An order under this subsection may be conditional, and the order may be amended before decision on the merits.

(4)

(a) In a class action maintained under Subsection (1)(e), the court may direct to the members of the class the best notice practicable under the circumstances, including individual notice to each member who can be identified through reasonable effort.

(b) The notice shall advise each member that:

(i) the court will exclude the member from the class, unless the member requests inclusion, by a specified date;

(ii) the judgment, whether favorable or not, will include all members who request inclusion; and

(iii) a member who requests inclusion may, if the member desires, enter an appearance through counsel.

(5) When appropriate, an action may be brought or maintained as a class action with respect to particular issues, or a class may be divided into subclasses and each subclass treated as a class.

(6) In the conduct of a class action the court may make appropriate orders:

(a) determining the course of proceedings or prescribing measures to prevent undue repetition or complication in the presentation of evidence or argument;

(b) requiring, for the protection of the members of the class or otherwise for the fair conduct of the action, that notice be given in the manner the court directs to some or all of the members or to the division of any step in the action, or of the proposed extent of the judgment, or of the opportunity of members to signify whether the members consider the representation fair and adequate, to intervene and present claims or defenses, or otherwise to come into the action;

(d) requiring that the pleadings be amended to eliminate allegations as to representation of absent persons, and that the action proceed accordingly; or

(e) dealing with similar procedural matters.

(7)

(a) A class action may not be dismissed or compromised without approval of the court.

(b) Notice of the proposed dismissal or compromise shall be given to all members of the class as the court directs.

(8)

(a) The judgment in an action maintained as a class action under Subsection (1)(e)(i) or (ii), whether or not favorable to the class, shall describe those whom the court finds to be members of the class.

(b) The judgment in a class action under Subsection (1)(e)(iii), whether or not favorable to the class, shall specify or describe the members to whom the notice provided in Subsection (4) was directed, and who have requested inclusion, and whom the court finds to be members of the class.

§ 13-11-21 Settlement of class action -- Complaint in class action delivered to enforcing authority.

(1)

(a)

(i)

(A) A defendant in a class action may file a written settlement offer.

(B) If the settlement offer is not accepted within a reasonable time by a plaintiff class representative, the defendant may file an affidavit reciting the rejection.

(ii)

(A) The court may determine that the settlement offer has enough merit to present to the members of the class.

(B) If the court determines that the settlement offer merits presenting, the court shall order a hearing to determine whether the settlement offer should be approved.

(iii) The court shall provide at least 60 days advance notice of the hearing:

(A) to the division; and

(B) to the extent practicable, to each member who can be identified through reasonable effort.

(iv) The notice described in Subsection (1)(a)(iii) shall specify the terms of the settlement offer and a reasonable period within which members of the class who request to be included in the class are entitled to be included in the class.

(v)

(A) The statute of limitations for the members that are excluded in accordance with this Subsection (1)(a)(v)(A) is tolled for the period the class action has been pending, plus an additional year.

(B) Within 60 days of receipt of the notice required by this Subsection (1)(a), the division may intervene in the class action for the limited purpose of objecting to the settlement offer.

(b)

(i) If a member who has previously lost an opportunity to be excluded from the class is excluded at the member's request in response to notice of the settlement offer during the period specified under Subsection (1)(a), the member may not thereafter participate in a class action for damages respecting the same consumer transaction, unless the court later disapproves the settlement offer or approves a settlement materially different from that proposed in the original settlement offer.

(ii) After the expiration of the period of limitations, a member of the class is not entitled to be excluded from the class.

(c)

(i) If the court later approves the settlement offer, including changes, if any, required by the court in the interest of a just settlement of the action, the court shall enter judgment, which is binding on all persons who are then members of the class.

(ii) If the court disapproves the settlement offer or approves a settlement materially different from that proposed in the original settlement offer, notice shall be given to a person who was excluded from the action at the person's request in response to notice of the settlement offer under Subsection (1)(a), and the person is entitled to rejoin the class and, in the case of the approval, participate in the settlement.

(2)

(a) On the commencement of a class action under Section 13-11-19, the class representative shall mail by certified mail with return receipt requested or personally serve a copy of the complaint on the division.

(b) Within 180 days after the receipt of a copy of the complaint, but not thereafter, the division may intervene in the class action for purposes of participation as an interested party in litigation of the class action.

§ 13-11-21.1 Retrospective Operation.

The provisions of Laws of Utah 2024, Chapter 222 apply to any claim for which a court has not issued a final, unappealable judgment or order as of May 1, 2024.

§ 13-11-22 Exemptions from application of act.

(1) This act does not apply to:

(a) an act or practice required or specifically permitted by or under state or federal law;

(b) a publisher, broadcaster, printer, or other person engaged in the dissemination of information or the reproduction of printed or pictorial matter so far as the information or matter has been disseminated or reproduced on behalf of others without actual knowledge that it violated this act;

(c) claim for personal injury or death or claim for damage to property other than the property that is the subject of the consumer transaction;

(d) credit terms of a transaction otherwise subject to this act; or

(e) any public utility subject to the regulating jurisdiction of the Public Service Commission of the state of Utah.

(2) A person alleged to have violated this act has the burden of showing the applicability of this section.

§ 13-11-23 Other remedies available -- Class action only as prescribed by act.

The remedies of this act are in addition to remedies otherwise available for the same conduct under state or local law, except that a class action relating to a transaction governed by this act may be brought only as prescribed by this act.

Chapter 11a Truth in Advertising

§ 13-11a-1 Purpose.

The purpose of this chapter is to prevent deceptive, misleading, and false advertising practices and forms in Utah. This chapter is to be construed to accomplish that purpose and not to prohibit any particular form of advertising so long as it is truthful and not otherwise misleading or deceptive.

§ 13-11a-2 Definitions.

As used in this chapter:

(1) "Advertisement" means any written, oral, or graphic statement or representation made by a supplier in connection with the solicitation of business. It includes, but is not limited to, communication by noncable television systems, radio, printed brochures, newspapers, leaflets, flyers, circulars, billboards, banners, or signs. It does not include any oral, in person, representation made by a sales representative to a prospective purchaser.

(2) To "clearly and conspicuously disclose" means:

(a) in the print media:

(i) to state in typeface that is sufficiently bold to be obviously seen;

(ii) to state in type size of at least 10 point type for a 14" x 23" document, and, in larger documents, of a type size of proportionately the same size; and

(iii) to place in the text so as to be obviously seen;

(b) in radio advertising, to verbally state in the same volume as that used in the advertisement;

(c) in television advertising, the method for print media or radio advertising is acceptable unless contrary to other governing laws.

(3) "Generic good" means a product which is offered for sale under its common descriptive name rather than under a trademark, trade name, brand name, house brand, or other distinguishing appellation.

(4) "Goods and services" means all items which may be the subject of a sales transaction.

(5) "Nondiscounted price" means a price at which the goods or services are offered at the time of the price assessment without a temporary store reduction in price.

(6) "Performing group" means a vocal or instrumental group that performs live music for a paying audience.

(7) "Person" means an individual, including a consumer, corporation, government, or governmental subdivision or agency, business trust, estate, trust, partnership, unincorporated association, two or more of any of the foregoing having a joint or common interest, or any other legal or commercial entity.

(8) "Price assessment" means the determination of the prices underlying a price comparison.

(9) "Price assessor" means a firm or individual that determines the prices, including the reference prices, underlying the price comparison, or who makes the price comparison.

(10) "Price comparison" means any express representation that a specific savings, reduction, or discount exists or will exist between the supplier's advertised price and another specific price. A representation which does not reasonably imply a comparison to identifiable prices or items does not express a price comparison. Language constituting mere sales "puffing" is not prohibited by this chapter.

(11) "Product area" means the geographical area in which the prospective purchasers to whom the advertisement is aimed could reasonably be expected to seek the goods or services in question.

(12) "Recording group" means a vocal or instrumental group at least one of the members of which has released a commercial sound recording under the group's name, if the member has a legal right to use of the group's name.

(13) "Reference price" means a higher price to which a supplier compares a lower price to indicate that a reduction in price exists or will exist.

(14) "Regular price" means the price at which a supplier has recently offered the goods or services for sale in good faith in the regular course of business. Every price represented in an advertisement is considered a regular price unless it is specifically represented as a price other than a regular price, such as a discount price or a manufacturer's suggested price. It is prima facie evidence that a price is other than a regular price when it was not offered as the nondiscount price of the goods or services for the 15 days immediately preceding an advertisement of the price, and the price change during the 15 day period was not due to price changes inherent in the pricing of seasonal or perishable goods, due to changes in cost of the goods or services to the supplier, or due to pricing changes made to match a competitor's price.

(15) "Sales transaction" means a sale, lease, assignment, award by chance, or other written or oral transfer or disposition of goods, services, or other property, both tangible and intangible (except securities and insurance), to a person or business, or a solicitation or offer by a supplier with respect to any of these transfers or dispositions. It includes any offer or solicitation, any agreement, and any performance of an agreement with respect to any of these transfers or dispositions.

(16) "Sound recording" means a work resulting from the fixation on a material object, such as a disk, tape, or phono-record, of musical or instrumental sounds.

(17) "Supplier" means a seller, lessor, assignor, offeror, broker, or other person who regularly solicits, engages in, or enforces sales transactions, whether or not he deals directly with the purchaser.

§ 13-11a-3 Deceptive trade practices enumerated -- Records to be kept -- Defenses.

(1) Deceptive trade practices occur when, in the course of a person's business, vocation, or occupation that person:

(a) passes off goods or services as those of another;

(b) causes likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;

(c) causes likelihood of confusion or of misunderstanding as to affiliation, connection, association with, or certification by another;

(d) uses deceptive representations or designations of geographic origin in connection with goods or services;

(e) represents that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or qualities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have;

(f) represents that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or second-hand;

(g) represents that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;

(h) disparages the goods, services, or business of another by false or misleading representation of fact;

(i) advertises goods or services or the price of goods and services with intent not to sell them as advertised;

(j) advertises goods or services with intent not to supply a reasonable expectable public demand, unless:

(i) the advertisement clearly and conspicuously discloses a limitation of quantity; or

(ii) the person issues rainchecks for the advertised goods or services;

(k) makes false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions, including the false use of any of the following expressions in an advertisement:

(i) "going out of business";

(ii) "bankruptcy sale";

(iii) "lost our lease";

(iv) "building coming down";

(v) "forced out of business";

(vi) "final days";

(vii) "liquidation sale";

(viii) "fire sale";

(ix) "quitting business"; or

(x) an expression similar to any of the expressions in Subsections (1)(k)(i) through (ix);

(l) makes a comparison between the person's own sale or discount price and a competitor's nondiscounted price without clearly and conspicuously disclosing that fact;

(m) without clearly and conspicuously disclosing the date of the price assessment makes a price comparison with the goods of another based upon a price assessment performed more than seven days prior to the date of the advertisement or uses in an advertisement the results of a price assessment performed more than seven days prior to the date of the advertisement without disclosing, in a print ad, the date of the price assessment, or in a radio or television ad, the time frame of the price assessment;

(n) advertises or uses in a price assessment or comparison a price that is not that person's own unless this fact is:

(i) clearly and conspicuously disclosed; and

(ii) the representation of the price is accurate;

(o) represents as independent an audit, accounting, price assessment, or comparison of prices of goods or services, when the audit, accounting, price assessment, or comparison is not independent;

(p) represents, in an advertisement of a reduction from the supplier's own prices, that the reduction is from a regular price, when the former price is not a regular price as defined in Subsection 13-11a-2(14);

(q) advertises a price comparison or the result of a price assessment or comparison that uses, in any way, an identified competitor's price without clearly and conspicuously disclosing the identity of the price assessor and any relationship between the price assessor and the supplier;

(r) makes a price comparison between a category of the supplier's goods and the same category of the goods of another, without randomly selecting the individual goods or services upon whose prices the comparison is based;

(s) makes a comparison between similar but nonidentical goods or services unless the nonidentical goods or services are of essentially similar quality to the advertised goods or services or the dissimilar aspects are clearly and conspicuously disclosed in the advertisements; or

(t) engages in any other conduct which similarly creates a likelihood of confusion or of misunderstanding.

(2)

(a) For purposes of Subsection (1)(i), if a specific advertised price will be in effect for less than one week from the advertisement date, the advertisement shall clearly and conspicuously disclose the specific time period during which the price will be in effect.

(b) For purposes of Subsection (1)(n), with respect to the price of a competitor, the price shall be one at which the competitor offered the goods or services for sale in the product area at the time of the price assessment, and may not be an isolated price.

(c) For purposes of Subsection (1)(o), an audit, accounting, price assessment, or comparison shall be independent if the price assessor randomly selects the goods to be compared, and the time and place of the comparison, and no agreement or understanding exists between the supplier and the price assessor that could cause the results of the assessment to be fraudulent or deceptive. The independence of an audit, accounting, or price comparison is not invalidated merely because the advertiser pays a fee for the audit, accounting, or price comparison, but is invalidated if the audit, accounting, or price comparison is done by a full or part-time employee of the advertiser.

(d) Examples of a disclosure that complies with Subsection (1)(q) are:

(i) "Price assessment performed by Store Z";

(ii) "Price assessment performed by a certified public accounting firm"; or

(iii) "Price assessment performed by employee of Store Y".

(e) For the purposes of Subsection (1)(r), goods or services are randomly selected when the supplier has no advance knowledge of what goods and services will be surveyed by the price assessor, and when the supplier certifies its lack of advance knowledge by an affidavit to be retained in the supplier's records for one year.

(f)

(i) It is prima facie evidence of compliance with Subsection (1)(s) if:

(A) the goods compared are substantially the same size; and

(B) the goods compared are of substantially the same quality, which may include similar models of competing brands of goods, or goods made of substantially the same materials and made with substantially the same workmanship.

(ii) It is prima facie evidence of a deceptive comparison under this section when the prices of brand name goods and generic goods are compared.

(3) Any supplier who makes a comparison with a competitor's price in advertising shall maintain for a period of one year records that disclose the factual basis for such price comparisons and from which the validity of such claim can be established.

(4) It is a defense to any claim of false or deceptive price representations under this chapter that a person:

(a) has no knowledge that the represented price is not genuine; and

(b) has made reasonable efforts to determine whether the represented price is genuine.

(5) Subsections (1)(m) and (q) do not apply to price comparisons made in catalogs in which a supplier compares the price of a single item of its goods or services with those of another.

(6) To prevail in an action under this chapter, a complainant need not prove competition between the parties or actual confusion or misunderstanding.

(7) This chapter does not affect unfair trade practices otherwise actionable at common law or under other statutes of this state.

§ 13-11a-4 Injunctive relief -- Damages -- Attorney fees -- Corrective advertising -- Notification required.

(1)

(a)

(i) Any person or the state may bring an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, to enjoin a continuance of any act in violation of this chapter and, if injured by the act, for the recovery of damages.

(ii) If, in such action, the court finds that the defendant is violating or has violated any of the provisions of this chapter, it shall enjoin the defendant from continuance of the violation.

(iii) It is not necessary that actual damages be proven.

(b) In addition to injunctive relief, the plaintiff is entitled to recover from the defendant the amount of actual damages sustained or $2,000, whichever is greater.

(c)

(i) Costs shall be allowed to the prevailing party unless the court otherwise directs.

(ii) The court shall award attorney fees to the prevailing party.

(2) The court may order the defendant to promulgate corrective advertising by the same media and with the same distribution and frequency as the advertising found to violate this chapter.

(3) The remedies of this section are in addition to remedies otherwise available for the same conduct under state or local law.

(4)

(a) No action for injunctive relief may be brought for a violation of this chapter unless the complaining person first gives notice of the alleged violation to the prospective defendant and provides the prospective defendant an opportunity to promulgate a correction notice by the same media as the allegedly violating advertisement.

(b) If the prospective defendant does not promulgate a correction notice within 10 days of receipt of the notice, the complaining person may file a lawsuit under this chapter.

§ 13-11a-5 Exemptions.

This chapter does not apply to:

(1) conduct in compliance with the orders or rules of, or a statute administered by, a federal, state, or local governmental agency;

(2) publishers, broadcasters, printers, or other persons engaged in the dissemination of information or reproduction of printed or pictorial matters who publish, broadcast, or reproduce material without knowledge of its deceptive character; or

(3) actions or appeals pending on the effective date of this chapter.

§ 13-11a-6 Truth in music advertising -- Exemptions -- Penalties.

(1) A person may not advertise or conduct a live musical performance by a performing group by using a false, deceptive, or otherwise misleading affiliation between a performing group and a recording group of the same name.

(2) This section does not apply to:

(a) a performing group that is the registrant and owner of a registered federal service mark for the group name;

(b) a performance by a performing group that is clearly identified in all advertising and promotional materials as a salute or tribute;

(c) a performing group at least one member of which was a member of the recording group and has a legal right to use of the group name;

(d) the advertising does not relate to a live musical performance occurring in this state; or

(e) a performance authorized in writing by the recording group.

(3)

(a) A person may enforce this section by bringing an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration.

(b) Notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, a person shall bring an action described in Subsection (3)(a) in the county in which the live musical performance is advertised or conducted if the person brings the action in the district court.

(d) The prevailing party in an action under Subsection (3)(a) may be awarded costs and attorney fees.

Chapter 12 Gasoline Products Marketing Act

§ 13-12-1 Citation.

This act shall be known and may be cited as the "Gasoline Products Marketing Act."

§ 13-12-2 Definitions.

As used in this act:

(1) "Distributor" means any person engaged in the refining of gasoline or motor fuels, who is engaged in the sale, consignment, or distribution of gasoline and oil products through retail outlets which it owns, leases, or otherwise controls, and who maintains an oral or written contractual relationship with a dealer for the sale of the products.

(2) "Dealer" means any person engaged in the retail sale of gasoline products under a marketing agreement entered into with a distributor, other than a person who is an employee of a distributor.

(3) "Refiner" means a person engaged in the refining of oil products.

(4) "Marketing agreement" means any agreement or contract between a refiner or a distributor or a distributor and or retailer or between a refiner and a distributor, under which such retailer or distributor is granted authority to use a trade mark, trade name, service mark, or other identifying symbol or name owned by such refiner or distributor, or any agreement or contract between such parties under which a retailer or distributor is granted authority to occupy premises owned, leased, or in any way controlled by a party to such agreement or contract, for the purpose of engaging in the distribution or sale of petroleum products for purposes other than resale.

(5) "Engaged in the retail sale of gasoline products" means that at least 30% of the dealer's gross revenue is derived from the retail sale of gasoline products.

(6) "Retail" means the sale of products for purposes other than resale.

§ 13-12-3 Refiners or distributors -- Unlawful practices -- Marketing agreements with dealers.

No refiner or distributor, directly or indirectly or through any office, agent, or employee, shall engage in any of the following practices:

(1) requiring a dealer, at the time of entering into a marketing agreement, to agree to a release, assignment, novation, waiver or estoppel which would relieve any person from any provision of this act;

(2) prohibiting, directly or indirectly, the right of free association among dealers for any lawful purpose;

(3) requiring a dealer to keep his retail outlet open for business for any specified number of hours per day, or days per week, unless those requirements are set forth in writing at the time of entering into the marketing agreement;

(4) fixing or maintaining the price at which the dealer must sell products, or attempting to fix or maintain those prices, through any form of coercion whatsoever; provided, that nothing herein shall be construed to prohibit a distributor or refiner from suggesting prices or counseling with dealers concerning those prices;

(5) requiring a dealer to use or utilize any promotion, premium, coupon, give-away, sales promotion or rebate in the operation of the business; provided that nothing herein shall be construed to prohibit a dealer from participating financially in a promotion, premium, coupon, give-away, sales promotion or rebate sponsored by the distributor or refiner if agreed to voluntarily by the parties;

(6) terminating, canceling or failing to renew any marketing agreement without having first given written notice setting forth all the reasons for such termination, cancellation, or intent not to renew the dealer at least 90 days in advance of such termination, cancellation, or failure to renew, except:

(a) where the alleged grounds are voluntary abandonment by the dealer of the marketing agreement relationship in which event the aforementioned written notice shall be given five business days in advance of such termination, cancellation, or failure to renew; and

(b) where the alleged grounds are caused by the conviction of the dealer or distributor in a court of competent jurisdiction of a criminal offense directly related to the business conducted pursuant to the marketing agreement, or the bankruptcy of the dealer or distributor, in which event the aforementioned termination, cancellation, or failure to renew may be effective immediately following such conviction or bankruptcy;

(i) failure of the dealer to substantially comply with the requirements of the marketing agreement;

(ii) action of the dealer fraudulently advising members of the motoring public of the necessity for unneeded automotive repairs, parts or accessories;

(iii) action of the dealer fraudulently representing either expressly or impliedly the trade mark or brand of product being sold by the dealer;

(iv) failure of the dealer to maintain the premises in a sufficiently clean and healthful manner to avoid constituting a nuisance to members of the motoring public or adjoining property owners as determined by the local board of health authority;

in which event the distributor shall provide the dealer with written notice of his intent to terminate, cancel or fail to renew, following which the dealer shall be allowed 10 days in which to comply, correct or respond to said allegations before further action can be taken by the distributor.

§ 13-12-4 Cancellation provisions -- Dealer or distributor -- Time limit to exercise.

(1) Every dealer or distributor shall have the right, which may not be waived, to cancel his marketing agreement until midnight of the seventh business day after the day on which the buyer signs the marketing agreement or, if that agreement is oral, after the day on which the buyer agrees thereto.

(2) Notice of cancellation shall be deemed to have been given when it is addressed to the distributor's or refiner's last known address, postage prepaid, and certified with a return receipt requested.

(3) Unless within 10 days after delivery of that notice of cancellation the dealer returns to the distributor or refiner any money, equipment or merchandise loaned, sold or delivered to the dealer and delivers up full possession of the business location to the distributor or refiner, that notice of cancellation shall be null and void ab initio.

(4)

(a) Except as provided in this subsection, within 10 days after notice of cancellation is delivered to him, the distributor or refiner shall tender to the buyer any payments made by the buyer and any note or other evidence of indebtedness.

(b) If the down payment includes goods traded in, the goods shall be tendered in substantially as good condition as when received by the distributor or refiner. If the distributor or refiner fails to tender the goods as provided by this subsection, the dealer may elect to recover an amount equal to the allowance established by their agreement.

(c) Notwithstanding the provisions of Subsection (3) until the distributor or refiner has complied with the obligations imposed by this subsection, the dealer may retain possession of goods delivered to him by the distributor or refiner and has a lien on the goods in his possession or control for any recovery to which he is entitled.

§ 13-12-5 Death of dealer or lessee -- Distributor to cooperate with heirs -- Offer to purchase -- Reasonable access to premises.

Upon the death of a dealer or lessee who operates under a marketing agreement, the distributor shall cooperate with the heirs or successors. Such cooperation shall include, but not be limited to, an offer to repurchase salable merchandise and equipment owned by the dealer at the fair market value not to exceed original invoice price and to permit the heirs or successors reasonable access to the premises for a reasonable period of time.

§ 13-12-6 Distributor electing not to continue doing business in state -- Repurchase merchandise.

If a distributor elects to discontinue doing business in the state of Utah during the term of a marketing agreement with the dealer, the distributor shall repurchase merchandise in salable condition at a fair wholesale market value not to exceed original invoice price which the dealer has purchased from the distributor.

§ 13-12-7 Equitable relief -- Attorney fees and costs -- Action for failure to renew -- Damages limited.

(1) Notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, a person may bring an action regarding a violation of this chapter in the county where the dealer resides or the dealership was to be established if the person brings the action in the district court.

(2) In addition to such relief as may be available at common law, the court may grant such equitable relief, both interim and final, as may be necessary to remedy those violations including declaratory judgments, injunctive relief, and punitive damages as well as actual damages.

(3) The prevailing party may, in the court's sole discretion, be awarded attorney fees and expert witness fees in addition to such other relief as the court may deem equitable.

(4) In any action for failure to renew an agreement, damages shall be limited to actual damages, including the value of the dealer's equity in the dealership, together with reasonable attorney fees and costs.

§ 13-12-8 Marketing agreements applicable after effective date.

This act shall apply to all marketing agreements made, renewed, or amended after the effective date of this act.

Chapter 13 Motion Picture Fair Licensing Act

§ 13-13-1 Title.

This chapter is known as the "Motion Picture Fair Licensing Act."

§ 13-13-2 Definitions.

As used in this chapter:

(1) "Distributor" means any person engaged in the business of renting, selling or licensing motion pictures to exhibitors.

(2) "Exhibitor" means any person engaged in the business of operating a theatre in this state.

(3) "License agreement" means any contract between a distributor and an exhibitor for the exhibition of a motion picture by the exhibitor in this state.

(4) "Theatre" means any establishment in which motion pictures are exhibited regularly to the public for a charge.

§ 13-13-4 Payment of percentage of receipts.

If an exhibitor is required by a license agreement to make any payment to the distributor that is based on a percentage of the theatre box office receipts the license agreement may not require a guarantee of a minimum payment to the distributor or require the exhibitor to charge any per capita amount for ticket sales.

§ 13-13-6 Provisions waiving or violating act void.

Any provision of a license agreement that fails to comply with this act is void and unenforceable.

§ 13-13-7 Violation an infraction.

It is unlawful for any person to willfully violate any provision of this chapter. A violation of this chapter is an infraction.

Chapter 14 New Automobile Franchise Act

Part 1 General Administration

§ 13-14-101 Title -- Legislative purpose.

(1) This chapter shall be cited as the "New Automobile Franchise Act."

(2) The Legislature finds that:

(a) The distribution and sales of new motor vehicles through franchise arrangements in the state vitally affects the general economy of the state, the public interest, and the public welfare. A substantial inequality of bargaining power between motor vehicle franchisors and motor vehicle franchisees enables a franchisor:

(i) to compel a franchisee to execute agreements that contain terms and conditions that a franchisee generally would not be agreed to absent the compulsion and duress that arise out of the inequality of bargaining power; and

(ii) in some cases to terminate a franchise without good cause, or to force a franchisee out of business by the use of unfair practices.

(b) Termination of franchises, without good cause or by unfair means:

(i) diminishes competition and, as a result, leads to higher retail prices and fewer purchase options;

(ii) adversely affects communities that depend on a franchisee to make available motor vehicles for sale or lease and to provide warranty work and other services related to vehicles; and

(iii) undercuts expectations of consumers concerning the availability of future services including warranty work from the franchisee.

(c) To promote the public welfare and in the exercise of the state's police powers, it is necessary to establish statutory guidelines regulating the relationship between franchisors and franchisees in the motor vehicle industry.

§ 13-14-102 Definitions.

As used in this chapter:

(1) "Affected municipality" means an incorporated city or town:

(a) that is located in the notice area; and

(b)

(i) within which a franchisor is proposing a new or relocated dealership that is within the relevant market area of an existing dealership of the same line-make owned by another franchisee; or

(ii) within which an existing dealership is located and a franchisor is proposing a new or relocated dealership within the relevant market area of that existing dealership of the same line-make.

(2) "Affiliate" has the meaning set forth in Section 16-10a-102.

(3) "Aftermarket product" means any product or service not included in the franchisor's suggested retail price of the new motor vehicle, as that price appears on the label required by 15 U.S.C. Sec. 1232(f).

(4) "Dealership" means a site or location in this state:

(a) at which a franchisee conducts the business of a new motor vehicle dealer; and

(b) that is identified as a new motor vehicle dealer's principal place of business for licensing purposes under Section 41-3-204.

(5) "Department" means the Department of Commerce.

(6) "Do-not-drive order" means an order issued by a franchisor that instructs an individual not to operate a motor vehicle of the franchisor's line-make due to a recall.

(7) "Executive director" means the executive director of the Department of Commerce.

(8)

(a) "Franchise" or "franchise agreement" means a written agreement, or in the absence of a written agreement, then a course of dealing or a practice for a definite or indefinite period, in which:

(i) a person grants to another person a license to use a trade name, trademark, service mark, or related characteristic; and

(ii) a community of interest exists in the marketing of new motor vehicles, new motor vehicle parts, and services related to the sale or lease of new motor vehicles at wholesale or retail.

(b) "Franchise" or "franchise agreement" includes a sales and service agreement.

(9) "Franchisee" means a person with whom a franchisor has agreed or permitted, in writing or in practice, to purchase, sell, or offer for sale new motor vehicles manufactured, produced, represented, or distributed by the franchisor.

(10) "Franchisor" means a person who has, in writing or in practice, agreed with or permits a franchisee to purchase, sell, or offer for sale new motor vehicles manufactured, produced, assembled, represented, or distributed by the franchisor, and includes:

(a) the manufacturer, producer, assembler, or distributor of the new motor vehicles;

(b) an intermediate distributor; and

(11) "Lead" means the referral by a franchisor to a franchisee of a potential customer whose contact information was obtained from a franchisor's program, process, or system designed to generate referrals for the purchase or lease of a new motor vehicle, or for service work related to the franchisor's vehicles.

(12) "Line-make" means:

(a) for other than a recreational vehicle, the motor vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the franchisor; or

(b) for a recreational vehicle, a specific series of recreational vehicle product that:

(i) is identified by a common series trade name or trademark;

(ii) is targeted to a particular market segment, as determined by decor, features, equipment, size, weight, and price range;

(iii) has a length and floor plan that distinguish the recreational vehicle from other recreational vehicles with substantially the same decor, features, equipment, size, weight, and price;

(iv) belongs to a single, distinct classification of recreational vehicle product type having a substantial degree of commonality in the construction of the chassis, frame, and body; and

(v) a franchise agreement authorizes a dealer to sell.

(13) "Mile" means 5,280 feet.

(14) "Motor home" means a self-propelled vehicle, primarily designed as a temporary dwelling for travel, recreational, or vacation use.

(15)

(a) "Motor vehicle" means:

(i) except as provided in Subsection (15)(b), a trailer;

(ii) a travel trailer;

(iii) except as provided in Subsection (15)(b), a motor vehicle as defined in Section 41-3-102;

(iv) a semitrailer as defined in Section 41-1a-102; and

(v) a recreational vehicle.

(b) "Motor vehicle" does not include:

(i) a motorcycle as defined in Section 41-1a-102;

(ii) an off-highway vehicle as defined in Section 41-3-102;

(iii) a small trailer;

(iv) a trailer that:

(A) is not designed for human habitation; and

(B) has a gross vehicle weight rating of less than 26,000 pounds;

(v) a mobile home as defined in Section 41-1a-102;

(vi) a trailer of 750 pounds or less unladen weight; and

(vii) a farm tractor or other machine or tool used in the production, harvesting, or care of a farm product.

(16) "New motor vehicle" means a motor vehicle that:

(a) has never been titled or registered; and

(b) for a motor vehicle that is not a trailer, travel trailer, or semitrailer, has been driven less than 7,500 miles.

(17) "New motor vehicle dealer" is a person who is licensed under Subsection 41-3-202(1) to sell new motor vehicles.

(18) "Notice" or "notify" includes both traditional written communications and all reliable forms of electronic communication unless expressly prohibited by statute or rule.

(19) "Notice area" means the geographic area that is:

(a) within a radius of at least six miles and no more than 10 miles from the site of an existing dealership; and

(b) located within a county with a population of at least 225,000.

(20) "Primary market area" means:

(a) for an existing dealership, the geographic area established by the franchisor that the existing dealership is intended to serve; or

(b) for a new or relocated dealership, the geographic area proposed by the franchisor that the new or relocated dealership is intended to serve.

(21) "Recall" means a determination by a franchisor or the National Highway Traffic Safety Administration that a motor vehicle has a safety-related defect or fails to meet a federal safety or emissions standard.

(22) "Recall repair" means any diagnostic work, labor, or part necessary to resolve an issue that is the basis of a recall.

(23)

(a) "Recreational vehicle" means a vehicular unit other than a mobile home, primarily designed as a temporary dwelling for travel, recreational, or vacation use, that is either self-propelled or pulled by another vehicle.

(b) "Recreational vehicle" includes:

(i) a travel trailer;

(ii) a camping trailer;

(iii) a motor home;

(iv) a fifth wheel trailer; and

(v) a van.

(24)

(a) "Relevant market area," except with respect to recreational vehicles, means:

(i) as applied to an existing dealership that is located in a county with a population of less than 225,000:

(A) the county in which the existing dealership is located; and

(B) the area within a 15-mile radius of the existing dealership; or

(ii) as applied to an existing dealership that is located in a county with a population of 225,000 or more, the area within a 10-mile radius of the existing dealership.

(b) "Relevant market area," with respect to recreational vehicles, means:

(i) the county in which the dealership is to be established or relocated; and

(ii) the area within a 35-mile radius from the site of the existing dealership.

(25) "Sale, transfer, or assignment" means any disposition of a franchise or an interest in a franchise, with or without consideration, including a bequest, inheritance, gift, exchange, lease, or license.

(26) "Serve" or "served," unless expressly indicated otherwise by statute or rule, includes any reliable form of communication.

(27) "Site-control agreement" means an agreement, however denominated and regardless of the agreement's form or of the parties to the agreement, that has the effect of:

(a) controlling in any way the use and development of the premises upon which a franchisee's business operations are located;

(b) requiring a franchisee to establish or maintain an exclusive dealership facility on the premises upon which the franchisee's business operations are located; or

(c) restricting the ability of the franchisee or, if the franchisee leases the dealership premises, the franchisee's lessor to transfer, sell, lease, develop, redevelop, or change the use of some or all of the dealership premises, whether by sublease, lease, collateral pledge of lease, right of first refusal to purchase or lease, option to purchase or lease, or any similar arrangement.

(28) "Small trailer" means the same as that term is defined in Section 41-3-102.

(29) "Stop-sale order" means an order issued by a franchisor that prohibits a franchisee from selling or leasing a certain used motor vehicle of the franchisor's line-make, which then or thereafter is in the franchisee's inventory, due to a recall.

(30) "Trailer" means the same as that term is defined in Section 41-3-102.

(31) "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable vehicle without motive power, designed as a temporary dwelling for travel, recreational, or vacation use that does not require a special highway movement permit when drawn by a self-propelled motor vehicle.

(32) "Used motor vehicle" means a motor vehicle that:

(a) has been titled and registered to a purchaser other than a franchisee; or

(b) for a motor vehicle that is not a trailer, travel trailer, or semitrailer, has been driven 7,500 or more miles.

(33) "Value of a used motor vehicle" means the average trade-in value for a used motor vehicle of the same year, make, and model as reported in a recognized, independent third-party used motor vehicle guide.

(34) "Written," "write," "in writing," or other variations of those terms shall include all reliable forms of electronic communication.

§ 13-14-104 Powers and duties of the executive director.

(1) The executive director shall:

(a) administer and enforce this chapter; and

(b) make rules for the administration of this chapter in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(2)

(a) An adjudicative proceeding under this chapter shall be conducted in accordance with Title 63G, Chapter 4, Administrative Procedures Act.

(b) In an adjudicative proceeding under this chapter, any order issued by the executive directorshall comply with Section 63G-4-208, whether the proceeding is a formal or an informal adjudicative proceeding under Title 63G, Chapter 4, Administrative Procedures Act.

(3) The executive director's decision under this section shall be made available to the public.

§ 13-14-105 Registration -- Fees.

(1) A franchisee or franchisor doing business in this state shall:

(a) annually register or renew its registration with the department in a manner established by the department; and

(b) pay an annual registration fee in an amount determined by the department in accordance with Sections 13-1-2 and 63J-1-504.

(2) The department shall register or renew the registration of a franchisee or franchisor if the franchisee or franchisor complies with this chapter and rules made by the department under this chapter.

(3) A franchisee or franchisor registered under this section shall comply with this chapter and any rules made by the department under this chapter including any amendments to this chapter or the rules made after a franchisee or franchisor enter into a franchise agreement.

(4) The fee imposed under Subsection (1)(b) shall be collected by the department and deposited into the Commerce Service Account created by Section 13-1-2.

(5) Notwithstanding Subsection (1), an agent, officer, or field or area representative of a franchisor does not need to be registered under this section if the franchisor is registered under this section.

§ 13-14-106 Administrative proceedings commenced by the agency.

(1) Except as provided in Subsection (3), after a hearing, if the executive director finds that a person has violated this chapter or any rule made under this chapter, the executive director may:

(a) issue a cease and desist order; and

(b) assess an administrative fine.

(2)

(a) In determining the amount and appropriateness of an administrative fine under Subsection (1), the executive director shall consider:

(i) the gravity of the violation;

(ii) any history of previous violations; and

(iii) any attempt made by the person to retaliate against another person for seeking relief under this chapter or other federal or state law relating to the motor vehicle industry.

(b) In addition to any other action permitted under Subsection (1), the department may file an action with a court seeking to enforce the executive director's order and pursue the executive director's assessment of a fine in an amount not to exceed $5,000 for each day a person violates an order of the executive director.

(3)

(a) In addition to the grounds for issuing an order on an emergency basis listed in Subsection 63G-4-502(1), the executive director may issue an order on an emergency basis if the executive director determines that irreparable damage is likely to occur if immediate action is not taken.

(b) In issuing an emergency order under Subsection (3)(a) the executive director shall comply with the requirements of Subsections 63G-4-502(2) and (3).

§ 13-14-107 Administrative proceedings -- Request for agency action.

(1)

(a) A person may commence an adjudicative proceeding in accordance with this chapter and Title 63G, Chapter 4, Administrative Procedures Act to:

(i) remedy a violation of this chapter;

(ii) obtain approval of an act regulated by this chapter; or

(iii) obtain any determination that this chapter specifically authorizes that person to request.

(b) A person shall commence an adjudicative proceeding by filing a request for agency action in accordance with Section 63G-4-201.

(2) The executive director shall apportion in a fair and equitable manner between the parties any costs of the adjudicative proceeding, including reasonable attorney fees.

§ 13-14-108 Applicability.

The provisions of this chapter do not apply to a person licensed as a direct-sale manufacturer under Title 41, Chapter 3, Motor Vehicle Business Regulation Act.

Part 2 Franchises in General

§ 13-14-201 Prohibited acts by franchisors -- Affiliates -- Disclosures.

(1) A franchisor may not in this state:

(a) except as provided in Subsection (3), require a franchisee to order or accept delivery of any new motor vehicle, part, accessory, equipment, or other item not otherwise required by law that is not voluntarily ordered by the franchisee;

(b) require a franchisee to:

(i) participate monetarily in any advertising campaign; or

(ii) participate in a contest, or purchase any promotional materials, display devices, or display decorations or materials;

(c) require a franchisee to change the capital structure of the franchisee's dealership or the means by or through which the franchisee finances the operation of the franchisee's dealership, if the dealership at all times meets reasonable capital standards determined by and applied in a nondiscriminatory manner by the franchisor;

(d) require a franchisee to refrain from participating in the management of, investment in, or acquisition of any other line of new motor vehicles or related products, if the franchisee:

(i) maintains a reasonable line of credit for each make or line of vehicles; and

(ii) complies with reasonable capital and facilities requirements of the franchisor;

(e) require a franchisee to prospectively agree to a release, assignment, novation, waiver, or estoppel that would:

(i) relieve a franchisor from any liability, including notice and hearing rights imposed on the franchisor by this chapter; or

(ii) require any controversy between the franchisee and a franchisor to be referred to a third party if the decision by the third party would be binding;

(f) require a franchisee to change the location of the principal place of business of the franchisee's dealership or make any substantial alterations to the dealership premises, if the change or alterations would be unreasonable or cause the franchisee to lose control of the premises or impose any other unreasonable requirement related to the facilities or premises;

(g) coerce or attempt to coerce a franchisee to join, contribute to, or affiliate with an advertising association;

(h) require, coerce, or attempt to coerce a franchisee to enter into an agreement with the franchisor or do any other act that is unfair or prejudicial to the franchisee, by threatening to cancel a franchise agreement or other contractual agreement or understanding existing between the franchisor and franchisee;

(i) adopt, change, establish, enforce, modify, or implement a plan or system for the allocation, scheduling, or delivery of new motor vehicles, parts, or accessories to the franchisor's franchisees so that the plan or system is not fair, reasonable, and equitable, including a plan or system that imposes a vehicle sales objective, goal, or quota on a franchisee, or that evaluates a franchisee's sales effectiveness or overall sales performance, without providing a reasonable opportunity for the franchisee to acquire the necessary vehicles in a timely manner from the franchisor on commercially reasonable terms;

(j) increase the price of any new motor vehicle that the franchisee has ordered from the franchisor and for which there exists at the time of the order a bona fide sale to a retail purchaser if the order was made before the franchisee's receipt of an official written price increase notification;

(k) fail to indemnify and hold harmless the franchisor's franchisee against any judgment for damages or settlement approved in writing by the franchisor:

(i) including court costs and attorney fees arising out of actions, claims, or proceedings including those based on:

(A) strict liability;

(B) negligence;

(D) express or implied warranty;

(E) revocation as described in Section 70A-2-608; or

(F) rejection as described in Section 70A-2-602; and

(ii) to the extent the judgment or settlement relates to alleged defective or negligent actions by the franchisor;

(l) threaten or coerce a franchisee to waive or forbear the franchisee's right to protest the establishment or relocation of a same line-make franchisee in the relevant market area of the affected franchisee;

(m) fail to ship monthly to a franchisee, if ordered by the franchisee, the number of new motor vehicles of each make, series, and model needed by the franchisee to achieve a percentage of total new vehicle sales of each make, series, and model equitably related to the total new vehicle production or importation being achieved nationally at the time of the order by each make, series, and model covered under the franchise agreement;

(n) require or otherwise coerce a franchisee to under-utilize the franchisee's existing dealer facility or facilities, including by:

(i) requiring or otherwise coercing a franchisee to exclude or remove from the franchisee's facility operations the selling or servicing of a line-make of vehicles for which the franchisee has a franchise agreement to utilize the facilities; or

(ii) prohibiting the franchisee from locating, relocating, or occupying a franchise or line-make in an existing facility owned or occupied by the franchisee that includes the selling or servicing of another franchise or line-make at the facility provided that the franchisee gives the franchisor written notice of the franchise co-location;

(o) fail to include in any franchise agreement or other agreement governing a franchisee's ownership of a dealership or a franchisee's conduct of business under a franchise the following language or language to the effect that: "If any provision in this agreement contravenes the laws or regulations of any state or other jurisdiction where this agreement is to be performed, or provided for by such laws or regulations, the provision is considered to be modified to conform to such laws or regulations, and all other terms and provisions shall remain in full force.";

(p) engage in the distribution, sale, offer for sale, or lease of a new motor vehicle to purchasers that acquire the vehicle in this state except through a franchisee with which the franchisor has established a written franchise agreement, if the franchisor's trade name, trademark, service mark, or related characteristic is an integral element in the distribution, sale, offer for sale, or lease;

(q) engage in the distribution or sale of a recreational vehicle that is manufactured, rented, sold, or offered for sale in this state without being constructed in accordance with the standards set by the American National Standards Institute for recreational vehicles and evidenced by a seal or plate attached to the vehicle;

(r) except as provided in Subsection (2), authorize or permit a person to perform warranty service repairs on motor vehicles, except warranty service repairs:

(i) by a franchisee with which the franchisor has entered into a franchise agreement for the sale and service of the franchisor's motor vehicles; or

(ii) on owned motor vehicles by a person or government entity that has purchased new motor vehicles in accordance with a franchisor's fleet discount program;

(s) fail to provide a franchisee with a written franchise agreement;

(t)

(i) except as provided in Subsection (1)(t)(ii) and notwithstanding any other provisions of this chapter:

(A) unreasonably fail or refuse to offer to the franchisor's same line-make franchised dealers all models manufactured for that line-make; or

(B) unreasonably require a dealer to:

(I) pay any extra fee, remodel, renovate, or recondition the dealer's existing facilities; or

(II) purchase unreasonable advertising displays or other materials as a prerequisite to receiving a model or series of vehicles; and

(ii) notwithstanding Subsection (1)(t)(i), a recreational vehicle franchisor may split a line-make between motor home and travel trailer products;

(u) except as provided in Subsection (6), directly or indirectly:

(i) own an interest in a new motor vehicle dealer or dealership;

(ii) operate or control a new motor vehicle dealer or dealership;

(iii) act in the capacity of a new motor vehicle dealer, as defined in Section 13-14-102; or

(iv) operate a motor vehicle service facility;

(v) fail to timely pay for all reimbursements to a franchisee for incentives and other payments made by the franchisor;

(w) directly or indirectly influence or direct potential customers to franchisees in an inequitable manner, including:

(i) charging a franchisee a fee for a referral regarding a potential sale or lease of any of the franchisee's products or services in an amount exceeding the actual cost of the referral;

(ii) giving a customer referral to a franchisee on the condition that the franchisee agree to sell the vehicle at a price fixed by the franchisor; or

(iii) advising a potential customer as to the amount that the potential customer should pay for a particular product;

(x) fail to provide comparable delivery terms to each franchisee for a product of the franchisor, including the time of delivery after the placement of an order by the franchisee;

(y) if a franchisor provides personnel training to the franchisor's franchisees, unreasonably fail to make that training available to each franchisee on proportionally equal terms;

(z) condition a franchisee's eligibility to participate in a sales incentive program on the requirement that a franchisee use the financing services of the franchisor or a subsidiary or affiliate of the franchisor for inventory financing;

(aa) make available for public disclosure, except with the franchisee's permission or under subpoena or in any administrative or judicial proceeding in which the franchisee or the franchisor is a party, any confidential financial information regarding a franchisee, including:

(i) monthly financial statements provided by the franchisee;

(ii) the profitability of a franchisee; or

(iii) the status of a franchisee's inventory of products;

(bb) use any performance standard, incentive program, or similar method to measure the performance of franchisees unless the standard or program:

(i) is designed and administered in a fair, reasonable, and equitable manner;

(ii) if based upon a survey, utilizes an actuarially generally acceptable, valid sample; and

(iii) is, upon request by a franchisee, disclosed and explained in writing to the franchisee, including:

(A) how the standard or program is designed;

(B) how the standard or program will be administered; and

(cc) other than sales to the federal government, directly or indirectly, sell, lease, offer to sell, or offer to lease, a new motor vehicle or any motor vehicle owned by the franchisor, except through a franchised new motor vehicle dealer;

(dd) compel a franchisee, through a finance subsidiary, to agree to unreasonable operating requirements, except that this Subsection (1)(dd) may not be construed to limit the right of a financing subsidiary to engage in business practices in accordance with the usage of trade in retail and wholesale motor vehicle financing;

(ee) condition the franchisor's participation in co-op advertising for a product category on the franchisee's participation in any program related to another product category or on the franchisee's achievement of any level of sales in a product category other than that which is the subject of the co-op advertising;

(ff) except as provided in Subsections (7) through (9), discriminate against a franchisee in the state in favor of another franchisee of the same line-make in the state:

(i) by selling or offering to sell a new motor vehicle to one franchisee at a higher actual price, including the price for vehicle transportation, than the actual price at which the same model similarly equipped is offered to or is made available by the franchisor to another franchisee in the state during a similar time period;

(ii) except as provided in Subsection (8), by using a promotional program or device or an incentive, payment, or other benefit, whether paid at the time of the sale of the new motor vehicle to the franchisee or later, that results in the sale of or offer to sell a new motor vehicle to one franchisee in the state at a higher price, including the price for vehicle transportation, than the price at which the same model similarly equipped is offered or is made available by the franchisor to another franchisee in the state during a similar time period;

(iii) except as provided in Subsection (9), by failing to provide or direct a lead in a fair, equitable, and timely manner; or

(iv) if the franchisee complies with any reasonable requirement concerning the sale of new motor vehicles, by using or considering the performance of any of the franchisor's franchisees located in this state relating to the sale of the franchisor's new motor vehicles in determining the:

(A) dealer's eligibility to purchase program, certified, or other used motor vehicles from the franchisor;

(B) volume, type, or model of program, certified, or other used motor vehicles the dealer is eligible to purchase from the franchisor;

(C) price of any program, certified, or other used motor vehicles that the dealer is eligible to purchase from the franchisor; or

(D) availability or amount of any discount, credit, rebate, or sales incentive the dealer is eligible to receive from the manufacturer for the purchase of any program, certified, or other motor vehicle offered for sale by the franchisor;

(gg)

(i) take control over funds owned or under the control of a franchisee based on the findings of a warranty audit, sales incentive audit, or recall repair audit, unless the following conditions are satisfied:

(A) the franchisor fully identifies in writing the basis for the franchisor's claim or charge back arising from the audit, including notifying the franchisee that the franchisee has 20 days from the day on which the franchisee receives the franchisor's claim or charge back to assert a protest in writing to the franchisor identifying the basis for the protest;

(B) the franchisee's protest shall inform the franchisor that the protest shall be submitted to a mediator in the state who is identified by name and address in the franchisee's notice to the franchisor;

(C) if mediation is requested under Subsection (1)(gg)(i)(B), mediation shall occur no later than 30 days after the day on which the franchisor receives the franchisee's protest of a claim or charge back;

(D) if mediation does not lead to a resolution of the protest, the protest shall be set for binding arbitration in the same venue in which the mediation occurred;

(E) binding arbitration under Subsection (1)(gg)(i)(D) shall be conducted:

(I) by an arbitrator mutually agreed upon by the franchisor and the franchisee; and

(II) on a date mutually agreed upon by the franchisor and the franchisee, but shall be held no later than 90 days after the franchisor's receipt of the franchisee's notice of protest;

(F) this Subsection (1)(gg)(i) applies exclusively to warranty audits, recall repair audits, and sales incentive audits;

(G) Subsections (1)(gg)(i)(A) through (E) do not apply if the franchisor reasonably believes that the amount of the claim or charge back is related to a fraudulent act by the franchisee; and

(H) the costs of the mediator or arbitrator instituted under this Subsection (1)(gg) shall be shared equally by the franchisor and the franchisee; or

(ii) require a franchisee to execute a written waiver of the requirements of Subsection (1)(gg)(i);

(hh) coerce, or attempt to coerce a franchisee to purchase or sell an aftermarket product manufactured by the franchisor, or obtained by the franchisor for resale from a third-party supplier and the franchisor or the franchisor's affiliate derives a financial benefit from the franchisee's sale or purchase of the aftermarket product as a condition to obtaining preferential status from the franchisor;

(ii) through an affiliate, take any action that would otherwise be prohibited under this chapter;

(jj) impose any fee, surcharge, or other charge on a franchisee designed to recover the cost of a warranty repair for which the franchisor pays the franchisee;

(kk) except as provided by the audit provisions of this chapter, take an action designed to recover a cost related to a recall, including:

(i) imposing a fee, surcharge, or other charge on a franchisee;

(ii) reducing the compensation the franchisor owes to a franchisee;

(iii) removing the franchisee from an incentive program; or

(iv) reducing the amount the franchisor owes to a franchisee under an incentive program;

(ll) directly or indirectly condition any of the following actions on the willingness of a franchisee, prospective new franchisee, or owner of an interest in a dealership facility to enter into a site-control agreement:

(i) the awarding of a franchise to a prospective new franchisee;

(ii) the addition of a line-make or franchise to an existing franchisee;

(iii) the renewal of an existing franchisee's franchise;

(iv) the approval of the relocation of an existing franchisee's dealership facility, unless the franchisor pays, and the franchisee voluntarily accepts, additional specified cash consideration to facilitate the relocation; or

(v) the approval of the sale or transfer of a franchise's ownership, unless the franchisor pays, and the buyer voluntarily accepts, additional specified cash consideration to facilitate the sale or transfer;

(mm) subject to Subsection (11), deny a franchisee the right to return any or all parts or accessories that:

(i) were specified for and sold to the franchisee under an automated ordering system required by the franchisor; and

(ii)

(A) are in good, resalable condition; and

(B)

(I) the franchisee received within the previous 12 months; or

(II) are listed in the current parts catalog;

(nn) subject to Subsection (12), obtain from a franchisee a waiver of a franchisee's right, by threatening:

(i) to impose a detriment upon the franchisee's business; or

(ii) to withhold any entitlement, benefit, or service:

(A) to which the franchisee is entitled under a franchise agreement, contract, statute, rule, regulation, or law; or

(B) that has been granted to more than one other franchisee of the franchisor in the state;

(oo) coerce a franchisee to establish, or provide by agreement, program, or incentive provision that a franchisee must establish, a price at which the franchisee is required to sell a product or service that is:

(i) sold in connection with the franchisee's sale of a motor vehicle; and

(ii)

(A) in the case of a product, not manufactured, provided, or distributed by the franchisor or an affiliate; or

(B) in the case of a service, not provided by the franchisor or an affiliate;

(pp) except as necessary to comply with a health or safety law, or to comply with a technology requirement compliance with which is necessary to sell or service a motor vehicle that the franchisee is authorized or licensed by the franchisor to sell or service, coerce or require a franchisee, through a penalty or other detriment to the franchisee's business, to:

(i) construct a new dealer facility or materially alter or remodel an existing dealer facility before the date that is 10 years after the date the construction of the new dealer facility at that location was completed, if the construction substantially complied with the franchisor's brand image standards or plans that the franchisor provided or approved; or

(ii) materially alter or remodel an existing dealer facility before the date that is 10 years after the date the previous alteration or remodeling at that location was completed, if the previous alteration or remodeling substantially complied with the franchisor's brand image standards or plans that the franchisor provided or approved;

(qq) notwithstanding the terms of a franchise agreement providing otherwise and subject to Subsection (14):

(i) coerce or require a franchisee, including by agreement, program, or incentive provision, to purchase a good or service, relating to a facility construction, alteration, or remodel, from a vendor that a franchisor or the franchisor's affiliate selects, identifies, or designates, without allowing the franchisee, after consultation with the franchisor, to obtain a like good or service of substantially similar quality from a vendor that the franchisee chooses; or

(ii) coerce or require a franchisee, including by agreement, program, or incentive provision, to lease a sign or other franchisor image element from the franchisor or an affiliate without providing the franchisee the right to purchase a sign or other franchisor image element of like kind and quality from a vendor that the franchisee chooses;

(rr) when providing a new motor vehicle to a franchisee for offer or sale to the public, fail to provide to the franchisee a written disclosure that may be provided to a potential buyer of the new motor vehicle of each accessory or function of the vehicle that may be initiated, updated, changed, or maintained by the franchisor or affiliate through over the air or remote means, and the charge to the customer at the time of sale for such initiation, update, change, or maintenance; or

(ss) fail to provide reasonable compensation to a franchisee for assistance requested by a customer whose vehicle was subjected to an over the air or remote change, repair, or update to any part, system, accessory, or function by the franchisor or affiliate and performed at the franchisee's dealership in order to satisfy the customer.

(2) Notwithstanding Subsection (1)(r), a franchisor may authorize or permit a person to perform warranty service repairs on motor vehicles if the warranty services are for a franchisor of recreational vehicles.

(3) Subsection (1)(a) does not prevent the franchisor from requiring that a franchisee carry a reasonable inventory of:

(a) new motor vehicle models offered for sale by the franchisor; and

(b) parts to service the repair of the new motor vehicles.

(4) Subsection (1)(d) does not prevent a franchisor from requiring that a franchisee maintain separate sales personnel or display space.

(5) Upon the written request of any franchisee, a franchisor shall disclose in writing to the franchisee the basis on which new motor vehicles, parts, and accessories are allocated, scheduled, and delivered among the franchisor's dealers of the same line-make.

(6)

(a) A franchisor may engage in any of the activities listed in Subsection (1)(u), for a period not to exceed 12 months if:

(i)

(A) the person from which the franchisor acquired the interest in or control of the new motor vehicle dealership was a franchised new motor vehicle dealer; and

(B) the franchisor's interest in the new motor vehicle dealership is for sale at a reasonable price and on reasonable terms and conditions; or

(ii) the franchisor is engaging in the activity listed in Subsection (1)(u) for the purpose of broadening the diversity of the franchisor's dealer body and facilitating the ownership of a new motor vehicle dealership by a person that:

(A) is part of a group that has been historically underrepresented in the franchisor's dealer body;

(B) would not otherwise be able to purchase a new motor vehicle dealership;

(D) has an ownership interest in the new motor vehicle dealership; and

(E) operates the new motor vehicle dealership under a plan to acquire full ownership of the dealership within a reasonable period of time and under reasonable terms and conditions.

(b) The executive director may, for good cause shown, extend the time limit set forth in Subsection (6)(a) for an additional period not to exceed 12 months.

(7) Subsection (1)(ff) does not apply to recreational vehicles.

(8) Subsection (1)(ff)(ii) does not prohibit a promotional or incentive program that is functionally available to all competing franchisees of the same line-make in the state on substantially comparable terms.

(9) Subsection (1)(ff)(iii) may not be construed to:

(a) permit provision of or access to customer information that is otherwise protected from disclosure by law or by contract between a franchisor and a franchisee; or

(b) require a franchisor to disregard the preference volunteered by a potential customer in providing or directing a lead.

(10) Subsection (1)(ii) does not limit the right of an affiliate to engage in business practices in accordance with the usage of trade in which the affiliate is engaged.

(11)

(a) Subsection (1)(mm) does not apply to parts or accessories that the franchisee ordered and purchased outside of an automated parts ordering system required by the franchisor.

(b) In determining whether parts or accessories in a franchisee's inventory were specified and sold under an automated ordering system required by the franchisor, the parts and accessories in the franchisee's inventory are presumed to be the most recent parts and accessories that the franchisor sold to the franchisee.

(12)

(a) Subsection (1)(nn) does not apply to a good faith settlement of a dispute, including a dispute relating to contract negotiations, in which the franchisee gives a waiver in exchange for fair consideration in the form of a benefit conferred on the franchisee.

(b) Subsection (12)(a) may not be construed to defeat a franchisee's claim that a waiver has been obtained in violation of Subsection (1)(nn).

(13)

(a) As used in Subsection (1)(pp):

(i) "Materially alter":

(A) means to make a material architectural, structural, or aesthetic alteration; and

(B) does not include routine maintenance, such as interior painting, reasonably necessary to keep a dealership facility in attractive condition.

(ii) "Penalty or other detriment" does not include a payment under an agreement, incentive, or program that is offered to but declined or not accepted by a franchisee, even if a similar payment is made to another franchisee in the state that chooses to participate in the agreement, incentive, or program.

(b) Subsection (1)(pp) does not apply to:

(i) a program that provides a lump sum payment to assist a franchisee to make a facility improvement or to pay for a sign or a franchisor image element, if the payment is not dependent on the franchisee selling or purchasing a specific number of new vehicles;

(ii) a program that is in effect on May 8, 2012, with more than one franchisee in the state or to a renewal or modification of the program;

(iii) a program that provides reimbursement to a franchisee on reasonable, written terms for a substantial portion of the franchisee's cost of making a facility improvement or installing signage or a franchisor image element; or

(iv) a written agreement between a franchisor and franchisee, in effect before May 8, 2012, under which a franchisee agrees to construct a new dealer facility.

(14)

(a) Subsection (1)(qq)(i) does not apply to:

(i) signage purchased by a franchisee in which the franchisor has an intellectual property right; or

(ii) a good used in a facility construction, alteration, or remodel that is:

(A) a moveable interior display that contains material subject to a franchisor's intellectual property right; or

(B) specifically eligible for reimbursement of over one-half the good's cost in accordance with a franchisor or distributor program or incentive granted to the franchisee on reasonable, written terms.

(b) Subsection (1)(qq)(ii) may not be construed to allow a franchisee to:

(i) impair or eliminate a franchisor's intellectual property right; or

(ii) erect or maintain a sign that does not conform to the franchisor's reasonable fabrication specifications and intellectual property usage guidelines.

(15) A franchisor may comply with Subsection (1)(rr) by notifying the franchisee that the information in a written disclosure described in Subsection (1)(rr) is available on a website or by other digital means.

§ 13-14-202 Sale or transfer of ownership.

(1)

(a) The franchisor shall give effect to the change in a franchise agreement as a result of an event listed in Subsection (1)(b):

(i) subject to Subsection 13-14-305(2)(b); and

(ii) unless exempted under Subsection (2).

(b) The franchisor shall give effect to the change in a franchise agreement pursuant to Subsection (1)(a) for the:

(i) sale of a dealership;

(ii) contract for sale of a dealership;

(iii) transfer of ownership of a franchisee's dealership by:

(A) sale;

(B) transfer of the business; or

(iv) change in the executive management of the franchisee's dealership.

(2) A franchisor is exempted from the requirements of Subsection (1) if:

(a) the transferee is denied, or would be denied, a new motor vehicle franchisee's license pursuant to Title 41, Chapter 3, Motor Vehicle Business Regulation Act; or

(b) the proposed sale or transfer of the business or change of executive management will be substantially detrimental to the distribution of franchisor's new motor vehicles or to competition in the relevant market area, provided that the franchisor has given written notice to the franchisee within 60 days following receipt by the franchisor of the following:

(i) a copy of the proposed contract of sale or transfer executed by the franchisee and the proposed transferee;

(ii) a completed copy of the franchisor's written application for approval of the change in ownership or executive management, if any, including the information customarily required by the franchisor; and

(iii)

(A) a written description of the business experience of the executive management of the transferee in the case of a proposed sale or transfer of the franchisee's business; or

(B) a written description of the business experience of the person involved in the proposed change of the franchisee's executive management in the case of a proposed change of executive management.

(3) For purposes of this section, the refusal by the franchisor to accept a proposed transferee is presumed to be unreasonable and undertaken without good cause if the proposed franchisee:

(a) is of good moral character; and

(b) otherwise meets the written, reasonable, and uniformly applied standards or qualifications, if any, of the franchisor relating to the business experience of executive management and financial capacity to operate and maintain the dealership required by the franchisor of its franchisees.

(4)

(a) If after receipt of the written notice from the franchisor described in Subsection (1) the franchisee objects to the franchisor's refusal to accept the proposed sale or transfer of the business or change of executive management, the franchisee may file an application for a hearing before the executive director up to 60 days from the date of receipt of the notice.

(b) After a hearing, the executive director shall determine, and enter an order providing that:

(i) the proposed transferee or change in executive management:

(A) shall be approved; or

(B) may not be approved for specified reasons; or

(ii) a proposed transferee or change in executive management is approved if specific conditions are timely satisfied.

(c)

(i) The franchisee shall have the burden of proof with respect to all issues raised by the franchisee's application for a hearing as provided in this section.

(ii) During the pendency of the hearing, the franchise agreement shall continue in effect in accordance with its terms.

(d) The executive director shall expedite, upon written request, any determination sought under this section.

§ 13-14-203 Succession to franchise.

(1)

(a) A successor, including a family member of a deceased or incapacitated franchisee, who is designated by the franchisee may succeed the franchisee in the ownership and operation of the dealership under the existing franchise agreement if:

(i) the designated successor gives the franchisor written notice of an intent to succeed to the rights of the deceased or incapacitated franchisee in the franchise agreement within 180 days after the franchisee's death or incapacity;

(ii) the designated successor agrees to be bound by all of the terms and conditions of the franchise agreement; and

(iii) the designated successor meets the criteria generally applied by the franchisor in qualifying franchisees.

(b) A franchisor may refuse to honor the existing franchise agreement with the designated successor only for good cause.

(2) The franchisor may request in writing from a designated successor the personal and financial data that is reasonably necessary to determine whether the existing franchise agreement should be honored. The designated successor shall supply the personal and financial data promptly upon the request.

(3)

(a) If a franchisor believes that good cause exists for refusing to honor the requested succession, the franchisor shall serve upon the designated successor notice of its refusal to approve the succession, within 60 days after the later of:

(i) receipt of the notice of the designated successor's intent to succeed the franchisee in the ownership and operation of the dealership; or

(ii) receipt of the requested personal and financial data.

(b) Failure to serve the notice pursuant to Subsection (3)(a) is considered approval of the designated successor and the franchise agreement is considered amended to reflect the approval of the succession the day following the last day the franchisor can serve notice under Subsection (3)(a).

(4) The notice of the franchisor provided in Subsection (3) shall:

(a) state the specific grounds for the refusal to approve the succession; and

(b) that discontinuance of the franchise agreement shall take effect not less than 180 days after the date the notice of refusal is served unless the proposed successor files an application for hearing under Subsection (6).

(5)

(a) This section does not prevent a franchisee from designating a person as the successor by written instrument filed with the franchisor.

(b) If a franchisee files an instrument under Subsection (5)(a), the instrument governs the succession rights to the management and operation of the dealership subject to the designated successor satisfying the franchisor's qualification requirements as described in this section.

(6)

(a) If a franchisor serves a notice of refusal to a designated successor pursuant to Subsection (3), the designated successor may, within the 180-day period provided in Subsection (4), file with the executive director an application for a hearing and a determination by the executive director regarding whether good cause exists for the refusal.

(b) If application for a hearing is timely filed, the franchisor shall continue to honor the franchise agreement until after:

(i) the requested hearing has been concluded;

(ii) a decision is rendered by the executive director; and

(iii) the applicable appeal period has expired following a decision by the executive director.

§ 13-14-204 Franchisor's obligations related to service -- Franchisor audits -- Time limits.

(1) Each franchisor shall specify in writing to each of the franchisor's franchisees licensed as a new motor vehicle dealer in this state:

(a) the franchisee's obligations for new motor vehicle preparation, delivery, warranty service, and recalls on the franchisor's products;

(b) the schedule of compensation to be paid to the franchisee for parts, work, and service; and

(2)

(a) The schedule of compensation described in Subsection (1) shall include reasonable compensation for diagnostic work, as well as repair service, parts, and labor.

(b) Time allowances described in Subsection (1) for the diagnosis and performance of warranty work and service shall be reasonable and adequate for the work to be performed.

(3)

(a) As used in this Subsection (3):

(i) "Qualified repair" means a repair to a motor vehicle that:

(A) would have come within the franchisor's new motor vehicle warranty but for such motor vehicle having exceeded the time or mileage limits of such warranty; and

(B) does not otherwise constitute warranty work.

(ii) "Qualified repair" does not include:

(A) routine maintenance, including without limitation the replacement of fluids, filters, non-electric vehicle batteries, bulbs, belts, brake pads, rotors, nuts, bolts, or fasteners;

(B) a replacement of or work on tires, wheels, or elements related to either, including without limitation wheel alignments and tire or wheel rotations;

(D) a repair that is the subject of a franchisor special event, promotion, or service campaign, or otherwise is subject to a franchisor discount;

(E) a repair of a motor vehicle owned by the franchisee or an employee of the franchisee;

(F) an installation of an accessory;

(G) a safety or vehicle emission inspection required by law;

(H) motor vehicle reconditioning;

(I) a part sold at wholesale;

(J) a repair or replacement with or to an aftermarket part;

(K) a franchisor-approved goodwill or policy repair or replacement; or

(L) a repair performed on a motor vehicle of a line-make other than that for which the franchisee is franchised by the franchisor.

(b)

(i) Reasonable compensation of the franchisee for parts and service in warranty or recall repair work may not be less than the rates charged by the franchisee for like parts and service to retail customers.

(ii) In the case of a recreational vehicle franchisee, reimbursement for parts used in the performance of warranty repairs, including those parts separately warranted directly to the consumer by a recreational vehicle parts supplier, may not be less than the franchisee's cost plus 20%.

(iii) For purposes of Subsection (3)(b)(ii), the term "cost" shall be that same price paid by a franchisee to a franchisor or supplier for the part when the part is purchased for a nonwarranty repair.

(c) A franchisee seeking to establish or modify the franchisee's retail labor rate, retail parts markup, or both, shall submit in writing or electronically to the franchisee's franchisor at the location and materially in the format theretofore specified by the franchisor in writing to the franchisee whichever of the following produces the fewer number of repair orders, all of which must be for repairs made no more than 180 days before such submission:

(i) all consecutive repair orders that include 100 sequential repair orders reflecting qualified repairs; or

(ii) all repair orders reflecting qualified repairs closed during any period of 90 consecutive days.

(d) A franchisee shall calculate the franchisee's:

(i) retail labor rate by determining the total charges for labor in the qualified repairs submitted and dividing that amount by the total number of hours in the qualified repairs that generated such charges; and

(ii) retail parts markup by determining the total charges for parts in the qualified repairs submitted, dividing such amount by the franchisee's total cost of the purchase of such parts, subtracting one, and multiplying by 100 to produce a percentage.

(e)

(i) A retail labor rate or retail parts markup described in Subsection (3)(c) is effective 30 days after the franchisee submits the notice described in Subsection (3)(c), unless, within 30 days after receiving the franchisee's submission, the franchisor delivers to the franchisee:

(A) a written objection to the material accuracy of the retail labor rate or retail parts markup; or

(B) a written request for supplemental repair orders pursuant to Subsection (3)(e)(ii).

(ii)

(A) If a franchisor determines from the franchisee's set of repair orders submitted pursuant to Subsections (3)(c) and (d) that the franchisee's submission for a retail labor rate or retail parts markup is substantially higher than the franchisee's current warranty rate, the franchisor may request, in writing, within 30 days after the franchisor's receipt of the notice described in Subsection (3)(c), all repair orders closed within the period of 30 days immediately preceding, or 30 days immediately following, the set of repair orders submitted by the franchisee.

(B) All time periods under this section shall be suspended until the franchisee submits the supplemental repair orders described in Subsection (3)(e)(ii)(A).

(iii) If a franchisor requests supplemental repair orders described in Subsection (3)(e)(ii), the franchisor may, within 30 days after receiving the supplemental repair orders, calculate a proposed adjusted retail labor rate or retail parts markup, as applicable, based upon any set of the qualified repair orders submitted by the franchisee, if the franchisor:

(A) uses the same requirements applicable to the franchisee's submission described in Subsection (3)(c);

(B) uses the formula to calculate the retail labor rate or retail parts markup described in Subsection (3)(d); and

(f) A franchisee may not seek to establish or modify the franchisee's:

(i) retail labor rate more frequently than once in a 12-month period; and

(ii) retail parts markup more frequently than once in a 12-month period.

(g) An approved adjusted retail labor rate or retail parts markup shall be effective on the later of 30 days after a franchisor receives:

(i) a submission described in Subsection (3)(c); or

(ii) supplemental repair orders described in Subsection (3)(e)(ii).

(h) A franchisor shall begin compensating the franchisee according to the effective retail labor rate and retail parts markup rate no later than 15 days after the effective date of the rate or rates.

(4) A franchisor may not fail to:

(a) perform any warranty obligation;

(b) include in written notices of franchisor's recalls to new motor vehicle owners and franchisees the expected date by which necessary parts and equipment will be available to franchisees for the correction of the defects; or

(c) in accordance with Subsections (2) and (3), compensate a franchisee for all diagnostic work, labor, and parts the franchisor requires to perform a recall repair.

(5) If a franchisor disallows a franchisee's claim for a defective part, alleging that the part is not defective, the franchisor at the franchisor's option shall:

(a) return the part to the franchisee at the franchisor's expense; or

(b) pay the franchisee the cost of the part.

(6)

(a) A claim made by a franchisee pursuant to this section for diagnostic work, labor, or parts shall be paid within 30 days after the claim's approval.

(b) The franchisor shall approve or disapprove a claim within 30 days after receipt of the claim on a form generally used by the franchisor and containing the generally required information. Any claim not specifically disapproved of in writing within 30 days after the receipt of the form is considered to be approved and payment shall be made within 30 days.

(7) A franchisor may conduct warranty service audits and recall repair audits of the franchisor's franchisee records on a reasonable basis.

(8) A franchisor may deny a franchisee's claim for warranty compensation or recall repair compensation only if:

(a) the franchisee's claim is based on a nonwarranty repair or a nonrecall repair;

(b) the franchisee lacks material documentation for the claim;

(c) the franchisee fails to comply materially with specific substantive terms and conditions of the franchisor's warranty compensation program or recall repair compensation program; or

(d) the franchisor has a bona fide belief based on competent evidence that the franchisee's claim is intentionally false, fraudulent, or misrepresented.

(9)

(a) Any charge back for a warranty part or service compensation, recall repair compensation, or service incentive is only enforceable for the six-month period immediately following the day on which the franchisor makes the payment compensating the franchisee for the warranty part or service, recall repair, or service incentive.

(b) Except as provided in Subsection (9)(e), all charge backs levied by a franchisor for sales compensation or sales incentives arising out of the sale or lease of a motor vehicle sold or leased by a franchisee shall be compensable only if written notice of the charge back is received by the franchisee within six months immediately following the sooner of:

(i) the day on which the franchisee reports the sale to the franchisor; or

(ii) the day on which the franchisor makes the payment for the sales compensation or sales incentive to the franchisee.

(c)

(i) Upon an audit, the franchisor shall provide the franchisee automated or written notice explaining the amount of and reason for a charge back.

(ii) A franchisee may respond in writing within 30 days after the notice under Subsection (9)(c)(i) to:

(A) explain a deficiency; or

(B) provide materials or information to correct and cure compliance with a provision that is a basis for a charge back.

(d) A charge back:

(i) may not be based on a nonmaterial error that is clerical in nature; and

(ii)

(A) shall be based on one or more specific instances of material noncompliance with the franchisor's warranty compensation program, sales incentive program, recall repair program, or recall compensation program; and

(B) may not be extrapolated from a sampling of warranty claims, recall repair claims, or sales incentive claims.

(e) The time limitations of this Subsection (9) do not preclude charge backs for any fraudulent claim that was previously paid.

(10)

(a) If within 30 days after the day on which a franchisor issues an initial notice of recall a part or remedy is not reasonably available to perform the recall repair on a used motor vehicle, each calendar month thereafter the franchisor shall pay the franchisee an amount equal to at least 1.35% of the value of the used motor vehicle, if:

(i) the franchisee holding the used motor vehicle for sale is authorized to sell and service a new vehicle of the same line-make;

(ii) after May 7, 2018, the franchisor issues a stop-sale or do-not-drive order on the used motor vehicle; and

(iii)

(A) the used motor vehicle is in the franchisee's inventory at the time the franchisor issued the order described in Subsection (10)(a)(ii); or

(B) after the franchisor issues the order described in Subsection (10)(a)(ii), the franchisee takes the used motor vehicle into the franchisee's inventory at the termination of the consumer lease for the vehicle, as a consumer trade-in accompanying the purchase of a new vehicle from the franchisee, or for any other reason in the ordinary course of business.

(b) A franchisor shall pay the compensation described in Subsection (10)(a):

(i) beginning:

(A) 30 days after the day on which the franchisee receives the stop-sale or do-not-drive order; or

(B) if a franchisee obtains the used motor vehicle more than 30 days after the day on which the franchisee receives the stop-sale or do-not-drive order, the day on which the franchisee obtains the used motor vehicle; and

(ii) ending the earlier of the day on which:

(A) the franchisor makes the recall part or remedy available for order and prompt shipment to the franchisee; or

(B) the franchisee sells, trades, or otherwise disposes of the used motor vehicle.

(c) A franchisor shall prorate the first and last payment for a used motor vehicle to a franchisee under this Subsection (10).

(d) A franchisor may direct the manner in which a franchisee demonstrates the inventory status of an affected used motor vehicle to determine eligibility under this Subsection (10), if the manner is not unduly burdensome.

(11)

(a) A franchisee that offsets recall repair compensation received from a franchisor under this section against recall repair compensation the franchisee receives under a state or federal recall repair compensation remedy may pursue any other available remedy against the franchisor.

(b) As an alternative to providing recall repair compensation under this section, a franchisor may compensate a franchisee for a recall repair:

(i) under a national recall repair compensation program, if the compensation is equal to or greater than the compensation provided under this section; or

(ii) as the franchisor and franchisee otherwise agree, if the compensation is equal to or greater than the compensation provided under this section.

(c) Nothing in this section requires a franchisor to provide compensation to a franchisee that exceeds the value of the used motor vehicle affected by a recall.

(12) During an audit under this section, a franchisor may not request a document from the franchisee that originated from the franchisor or a subsidiary of the franchisor, unless the document required additional information from the customer.

§ 13-14-205 Liability for damages to motor vehicles in transit -- Disclosure required.

(1)

(a) A franchisee is solely liable for damage to a new motor vehicle after delivery by and acceptance from the carrier.

(b) A delivery receipt or bill of lading, or similar document, signed by a franchisee is evidence of a franchisee's acceptance of a new motor vehicle.

(2) A franchisor is liable for all damage to a motor vehicle before delivery to and acceptance by the franchisee, including that time in which the vehicle is in the control of a carrier or transporter.

(3)

(a) A franchisor shall disclose to the franchisee any repairs made prior to delivery, except a recreational vehicle franchisor shall disclose to a recreational vehicle franchisee any repair made to the vehicle prior to delivery only if:

(i) the cost of the repair exceeds 3% of the manufacturer's wholesale price, as measured by retail repair costs; or

(ii) the repair is to the exterior sidewalls or roof of the vehicle, and repairs total over $500.

(b) Replacement of a recreational vehicle's glass, tires, wheels, audio equipment, in-dash components, instrument panels, appliances, furniture, and components other than built-in cabinetry contained in the vehicle's living quarters, is not considered a repair under this subsection if the component replaced has been replaced with original manufacturers parts and materials.

(4) Notwithstanding Subsections (1), (2), and (3), the franchisee is liable for damage to a new motor vehicle after delivery to the carrier or transporter if the franchisee selected:

(a) the method and mode of transportation; and

(b) the carrier or transporter.

§ 13-14-206 Site-control agreements.

(1) A site-control agreement entered into on or after May 11, 2010:

(a) may be voluntarily terminated by a franchisee, subject to Subsection (2)(a); and

(b) terminates immediately upon:

(i) a franchisor's sale, assignment, or other transfer of the right to manufacture or distribute the line-make of vehicles covered by the franchisee's franchise;

(ii) a franchisor's ceasing to manufacture or distribute the line-make of vehicles covered by the franchisee's franchise;

(iii) a franchisor's termination of a franchisee's franchise without cause and against the franchisee's will; or

(iv) the failure of the franchisor or its affiliate to exercise a right of first refusal to purchase the assets or ownership of the franchisee's business when given the opportunity to do so under the franchise or other agreement, subject to the repayment requirements of Subsection (2) if the right of first refusal arises because of the voluntary action of the franchisee.

(2)

(a) If a franchisee voluntarily terminates a site-control agreement after the franchisor has paid and the franchisee or other recipient has accepted additional specified cash consideration, the site-control agreement remains valid only until the franchisee or other recipient satisfies the repayment terms specified in Subsection (2)(b).

(b)

(i) If the franchisor's additional specified cash consideration was used for the construction of a building or improvement on the property that is the subject of the site-control agreement, the amount of the repayment under Subsection (2)(a):

(A) is based on any repayment terms specified in the site-control agreement, if the parties to the site-control agreement have willingly agreed to the terms; and

(B) may not exceed the market value of the portion of the building or improvement constructed with the additional specified cash consideration paid by the franchisor, after allowing for depreciation based on a market-based depreciation schedule, as determined by an independent appraiser at the request of the franchisee or other recipient.

(ii) If the franchisor's additional specified cash consideration was not used for construction of a building or improvement on the property that is the subject of the site-control agreement, the amount of the repayment under Subsection (2)(a) is an equitable portion of the cash consideration, as determined under any terms specified in the site-control agreement for the equitable repayment following a franchisee's voluntary termination of the agreement.

(i) the site-control agreement is terminated; and

(ii) the franchisor or other party that is the beneficiary under the site-control agreement shall prepare and deliver to the franchisee a recordable notice of termination of:

(A) the site-control agreement; and

(B) any lien or encumbrance arising because of the site-control agreement and previously recorded against the property that is the subject of the site-control agreement.

Part 3 Restrictions on Termination, Relocation, and Establishment of Franchises

§ 13-14-301 Termination or noncontinuance of franchise.

(1) Except as provided in Subsection (2), a franchisor may not terminate or refuse to continue a franchise agreement or the rights to sell and service a line-make pursuant to a franchise agreement, whether through termination or noncontinuance of the franchise, termination or noncontinuance of a line-make, or otherwise, unless:

(a) the franchisee has received written notice from the franchisor 60 days before the effective date of termination or noncontinuance setting forth the specific grounds for termination or noncontinuance that are relied on by the franchisor as establishing good cause for the termination or noncontinuance;

(b) the franchisor has good cause for termination or noncontinuance; and

(2) A franchisor may terminate a franchise, without complying with Subsection (1):

(a) if the franchisee's license as a new motor vehicle dealer is revoked under Title 41, Chapter 3, Motor Vehicle Business Regulation Act; or

(b) upon a mutual written agreement of the franchisor and franchisee.

(3)

(a) At any time before the effective date of termination or noncontinuance of the franchise, the franchisee may apply to the executive director for a hearing on the merits, and following notice to all parties concerned, the hearing shall be promptly held as provided in Section 13-14-304.

(b) A termination or noncontinuance subject to a hearing under Subsection (3)(a) may not become effective until:

(i) final determination of the issue by the executive director; and

(ii) the applicable appeal period has lapsed.

(4) A franchisee may voluntarily terminate its franchise if the franchisee provides written notice to the franchisor at least 30 days prior to the termination.

§ 13-14-302 Issuance of additional franchises -- Relocation of existing franchisees.

(1) Except as provided in Subsection (7), a franchisor shall provide the notice and documentation required under Subsection (3) if the franchisor seeks to:

(a) enter into a franchise agreement establishing a motor vehicle dealership within a relevant market area where the same line-make is represented by another franchisee; or

(b) relocate an existing motor vehicle franchisee.

(2) In determining whether a new or relocated dealership is within a relevant market area where the same line-make is represented by an existing dealership, the relevant market area is measured from the closest property boundary line of the existing dealership to the closest property boundary line of the new or relocated dealership.

(3)

(a) If a franchisor seeks to take an action listed in Subsection (1), before taking the action, the franchisor shall, in writing, notify the executive director, the clerk of each affected municipality, and each franchisee in that line-make in the relevant market area.

(b) The notice required by Subsection (3)(a) shall:

(i) specify the intended action described under Subsection (1);

(ii) specify the good cause on which it intends to rely for the action; and

(iii) be delivered by registered or certified mail or by any form of reliable delivery through which receipt is verifiable.

(4)

(a) Except as provided in Subsection (4)(c), the franchisor shall provide to the executive director, each affected municipality, and each franchisee in that line-make in the relevant market area the following documents relating to the notice described under Subsection (3):

(i)

(A) any aggregate economic data and all existing reports, analyses, or opinions based on the aggregate economic data that were relied on by the franchisor in reaching the decision to proceed with the action described in the notice; and

(B) the aggregate economic data under Subsection (4)(a)(i)(A) includes:

(I) motor vehicle registration data;

(II) market penetration data; and

(III) demographic data;

(ii) written documentation that the franchisor has in the franchisor's possession that it intends to rely on in establishing good cause under Section 13-14-306 relating to the notice;

(iii) a statement that describes in reasonable detail how the establishment of a new franchisee or the relocation of an existing franchisee will affect the amount of business transacted by other franchisees of the same line-make in the relevant market area, as compared to business available to the franchisees; and

(iv) a statement that describes in reasonable detail how the establishment of a new franchisee or the relocation of an existing franchisee will be beneficial or injurious to the public welfare or public interest.

(b) The franchisor shall provide the documents described under Subsection (4)(a) with the notice required under Subsection (3).

(i) the documents would be privileged under the Utah Rules of Evidence;

(ii) the documents contain confidential proprietary information;

(iii) the documents are subject to federal or state privacy laws;

(iv) the documents are correspondence between the franchisor and existing franchisees in that line-make in the relevant market area; or

(v) the franchisor reasonably believes that disclosure of the documents would violate:

(A) the privacy of another franchisee; or

(B) Section 13-14-201.

(5)

(a) Within 30 days of receiving notice required by Subsection (3), any franchisee that is required to receive notice under Subsection (3) may protest to the executive director the establishment or relocation of the dealership.

(b) No later than 10 days after the day on which a protest is filed, the department shall inform the franchisor that:

(i) a timely protest has been filed;

(ii) a hearing is required;

(iii) the franchisor may not establish or relocate the proposed dealership until the executive director has held a hearing; and

(iv) the franchisor may not establish or relocate a proposed dealership if the executive director determines that there is not good cause for permitting the establishment or relocation of the dealership.

(6) If multiple protests are filed under Subsection (5), hearings may be consolidated to expedite the disposition of the issue.

(7) Subsections (1) through (6) do not apply to a relocation of an existing or successor dealer to a location that is:

(a) within the same county and less than two miles from the existing location of the existing or successor franchisee's dealership; or

(b) further away from a dealership of a franchisee of the same line-make.

(8) For purposes of this section:

(a) relocation of an existing franchisee's dealership in excess of two miles from the dealership's existing location is considered the establishment of an additional franchise in the line-make of the relocating franchise;

(b) the reopening in a relevant market area of a dealership that has not been in operation for one year or more is considered the establishment of an additional motor vehicle dealership; and

(c)

(i) except as provided in Subsection (8)(c)(ii), the establishment of a temporary additional place of business by a recreational vehicle franchisee is considered the establishment of an additional motor vehicle dealership; and

(ii) the establishment of a temporary additional place of business by a recreational vehicle franchisee is not considered the establishment of an additional motor vehicle dealership if the recreational vehicle franchisee is participating in a trade show where three or more recreational vehicle dealers are participating.

§ 13-14-302.5 Application of new franchise process with respect to certain terminated franchises.

(1) As used in this section:

(a) "Covered franchisee":

(i) means a person who was a franchisee under a pre-bankruptcy franchise; and

(ii) is a "covered dealership," as that term is defined in the federal franchise arbitration law.

(b) "Covered franchisor":

(i) means a person who was a franchisor under a pre-bankruptcy franchise; and

(ii) is a "covered manufacturer," as that term is defined in the federal franchise arbitration law.

(c) "Federal franchise arbitration law" means Section 747 of the Consolidated Appropriations Act of 2010, Pub. L. No. 111-117.

(d) "New franchisor":

(i) means a person who is a franchisor of the same line-make as the franchisor under a pre-bankruptcy franchise that has become a terminated franchise; and

(ii) is a "covered manufacturer," as that term is defined in the federal franchise arbitration law.

(e) "Pre-bankruptcy franchise" means a franchise in effect as of October 3, 2008.

(f) "Reinstated franchise" means:

(i) a terminated franchise that a reinstatement order determines should be reinstated, renewed, continued, assigned, or assumed; or

(ii) a franchise that a reinstatement order otherwise determines should be reestablished in or added to the dealer network of a new franchisor in the geographic area where the covered franchisee was located before October 3, 2008.

(g) "Reinstated franchisee" means a covered franchisee:

(i) whose franchise became a terminated franchise with less than 90 days' notice prior to termination; and

(ii) that becomes entitled to a reinstated franchise under a reinstatement order.

(h) "Reinstatement order" means an arbitrator's written determination:

(i) in an arbitration proceeding held under the federal franchise arbitration law; and

(ii)

(A) that a terminated franchise should be reinstated, renewed, continued, assigned, or assumed; or

(B) that a covered franchisee should otherwise be reestablished as a franchisee in or added to the dealer network of a new franchisor in the geographic area where the covered franchisee was located before October 3, 2008.

(i) "Terminated franchise" means a covered franchisee's pre-bankruptcy franchise that was terminated or not continued or renewed as a result of a bankruptcy proceeding involving a covered franchisor as the bankruptcy debtor.

(2) The process under Sections 13-14-302, 13-14-304, and 13-14-306 for the issuance of a franchise, including Subsections 13-14-302(5) and (6) and Section 13-14-304 relating to a protest by another franchisee in the line-make in the relevant market area against the establishment or relocation of a franchise, does not apply to a reinstated franchise or reinstated franchisee.

§ 13-14-303 Effect of terminating a franchise.

If under Section 13-14-301 the executive director permits a franchisor to terminate or not continue a franchise and prohibits the franchisor from entering into a franchise for the sale of new motor vehicles of a line-make in a relevant market area, the franchisor may not enter into a franchise for the sale of new motor vehicles of that line-make in the specified relevant market area unless the executive director determines that there has been a change of circumstances so that the relevant market area at the time of the establishment of the new franchise agreement can reasonably be expected to support the new franchisee.

§ 13-14-304 Hearing regarding termination, relocation, or establishment of franchises.

(1)

(a) Within 10 days after the day on which the executive director receives an application from a franchisee under Subsection 13-14-301(3) challenging a franchisor's right to terminate or not continue a franchise, or an application under Section 13-14-302 challenging the establishment or relocation of a franchise, the executive director shall:

(i) enter an order designating the time and place for the hearing; and

(ii) send a copy of the order by certified or registered mail, with return receipt requested, or by any form of reliable delivery through which receipt is verifiable to:

(A) the applicant;

(B) the franchisor; and

(C) if the application involves the establishment of a new franchise or the relocation of an existing dealership, each affected municipality and to each franchisee in the relevant market area engaged in the business of offering to sell or lease the same line-make.

(b) A copy of an order mailed under Subsection (1)(a) shall be addressed to the franchisee at the place where the franchisee's business is conducted.

(2) An affected municipality and any other person who can establish an interest in the application may intervene as a party to the hearing, whether or not that person receives notice.

(3) Any person, including an affected municipality, may appear and testify on the question of the public interest in the termination or noncontinuation of a franchise or in the establishment of an additional franchise.

(4)

(a)

(i) Any hearing ordered under Subsection (1) shall be conducted no later than 90 days after the day on which the application for hearing is filed.

(ii) A final decision on the challenge shall be made by the executive director no later than 20 days after the day on which the hearing ends.

(b) Failure to comply with the time requirements of Subsection (4)(a) is considered a determination that the franchisor acted with good cause or, in the case of a protest of a proposed establishment or relocation of a dealer, that good cause exists for permitting the proposed additional or relocated new motor vehicle dealer, unless:

(i) the delay is caused by acts of the franchisor or the additional or relocating franchisee; or

(ii) the delay is waived by the parties.

(5) The franchisor has the burden of proof to establish by a preponderance of the evidence that under the provisions of this chapter it should be granted permission to:

(a) terminate or not continue the franchise;

(b) enter into a franchise agreement establishing an additional franchise; or

(6) Any party to the hearing may appeal the executive director's final decision in accordance with Title 63G, Chapter 4, Administrative Procedures Act, including the franchisor, an existing franchisee of the same line-make whose relevant market area includes the site of the proposed dealership, or an affected municipality.

§ 13-14-305 Evidence to be considered in determining cause to terminate or discontinue.

(1) In determining whether a franchisor has established good cause for terminating or not continuing a franchise agreement, the executive director shall consider:

(a) the amount of business transacted by the franchisee, as compared to business available to the franchisee;

(b) the investment necessarily made and obligations incurred by the franchisee in the performance of the franchisee's part of the franchise agreement;

(d) whether it is injurious or beneficial to the public welfare or public interest for the business of the franchisee to be disrupted;

(e) whether the franchisee has adequate motor vehicle sales and service facilities, equipment, vehicle parts, and qualified service personnel to reasonably provide for the needs of the consumer for the new motor vehicles handled by the franchisee and has been and is rendering adequate services to the public;

(f) whether the franchisee refuses to honor warranties of the franchisor under which the warranty service work is to be performed pursuant to the franchise agreement, if the franchisor reimburses the franchisee for the warranty service work;

(g) failure by the franchisee to substantially comply with those requirements of the franchise agreement that are determined by the executive director to be:

(i) reasonable;

(ii) material; and

(iii) not in violation of this chapter;

(h) evidence of bad faith by the franchisee in complying with those terms of the franchise agreement that are determined by the executive director to be:

(i) reasonable;

(ii) material; and

(iii) not in violation of this chapter;

(i) prior misrepresentation by the franchisee in applying for the franchise;

(j) transfer of any ownership or interest in the franchise without first obtaining approval from the franchisor or the executive director; and

(k) any other factor the executive director considers relevant.

(2) Notwithstanding any franchise agreement, the following do not constitute good cause, as used in this chapter for the termination or noncontinuation of a franchise:

(a) the sole fact that the franchisor desires greater market penetration or more sales or leases of new motor vehicles;

(b) the change of ownership of the franchisee's dealership or the change of executive management of the franchisee's dealership unless the franchisor proves that the change of ownership or executive management will be substantially detrimental to the distribution of the franchisor's motor vehicles; or

(c) the fact that the franchisee has justifiably refused or declined to participate in any conduct covered by Section 13-14-201.

(3) For purposes of Subsection (2), "substantially detrimental" includes the failure of any proposed transferee to meet the objective criteria applied by the franchisor in qualifying franchisees at the time of application.

§ 13-14-306 Evidence to be considered in determining cause to relocate or establish a new franchised dealership.

In determining whether a franchisor has established good cause for relocating an existing franchisee or establishing a new franchised dealership for the same line-make in a given relevant market area, the executive director shall consider:

(1) the amount of business transacted by other franchisees of the same line-make in that relevant market area, as compared to business available to the franchisees;

(2) the investment necessarily made and obligations incurred by other franchisees of the same line-make in that relevant market area in the performance of their part of their franchisee agreements;

(3) the permanency of the existing and proposed investment;

(4) whether it is injurious or beneficial to the public welfare or public interest for an additional franchise to be established, including:

(a) the impact on any affected municipality;

(b) population growth trends in any affected municipality;

(c) the number of dealerships in the primary market area of the new or relocated dealership compared to the number of dealerships in each primary market area adjacent to the new or relocated dealership's primary market area; and

(d) how the new or relocated dealership would impact the distance and time that an individual in the new or relocated dealership's primary market area would have to travel to access a dealership in the same line-make as the new or relocated dealership;

(5) whether the franchisees of the same line-make in that relevant market area are providing adequate service to consumers for the motor vehicles of the line-make, which shall include the adequacy of:

(a) the motor vehicle sale and service facilities;

(b) equipment;

(d) qualified service personnel; and

(6) whether the relocation or establishment would cause any material negative economic effect on a dealer of the same line-make in the relevant market area.

§ 13-14-307 Franchisor's obligations upon termination or noncontinuation of franchise or line-make.

(1) Upon the termination or noncontinuation of a franchise or a line-make, the franchisor shall pay the franchisee:

(a) an amount calculated by:

(i) including the franchisee's cost of unsold motor vehicles that:

(A) are in the franchisee's inventory;

(B) were acquired:

(I) from the franchisor; or

(II) in the ordinary course of business from another franchisee of the same line-make;

(D) represent the current model year at the time of termination or noncontinuation, or the two model years immediately before the time of termination or noncontinuation;

(ii) reducing the amount in Subsection (1)(a)(i) by a prorated 1% for each 1,000 miles over 500 miles registered on a new vehicle's odometer;

(iii) adding any charges made by the franchisor, for distribution, delivery, or taxes;

(iv) adding the franchisee's cost of any franchisor accessories added on the vehicle, except only those recreational vehicle accessories that are listed in the franchisor's wholesale product literature as options for that vehicle shall be repurchased; and

(v) subtracting all allowances paid or credited to the franchisee by the franchisor;

(b) the franchisee's cost of new and undamaged motor vehicles in the franchisee's inventory of demonstrator vehicles, reduced by a prorated 1% for each 1000 miles over 500 miles registered on the demonstrator vehicle's odometer, except recreational vehicles whose cost shall be reduced by 2% for each 1,000 miles registered on the odometer of demonstrator self-propelled recreational vehicles, exclusive of miles incurred in delivery of the vehicle, and the cost of demonstrator nonself-propelled recreational vehicles shall be reduced by 10% of the franchisee's vehicle cost:

(i) plus any charges made by the franchisor for distribution, delivery, or taxes;

(ii) plus the franchisee's cost of any accessories added on the vehicles, except only those recreational vehicle accessories that are listed in the franchisor's wholesale product literature as options for that vehicle shall be repurchased; and

(iii) less all allowances paid or credited to the franchisee by the franchisor;

(c) the cost of all new, undamaged, and unsold supplies, parts, and accessories as set forth in the franchisor's catalog at the time of termination or noncontinuation for the supplies, parts, and accessories, less all allowances paid or credited to the franchisee by the franchisor;

(d) the fair market value, but not less than the franchisee's depreciated acquisition cost of each undamaged sign owned by the franchisee that bears a common name, trade name, or trademark of the franchisor if acquisition of the sign was recommended or required by the franchisor. If a recreational vehicle franchisee has a sign with multiple manufacturers listed, the franchisor is only responsible for its pro rata portion of the sign;

(e) the fair market value, but not less than the franchisee's depreciated acquisition cost, of all special tools, equipment, and furnishings acquired from the franchisor or sources approved by the franchisor that were required by the franchisor and are in good and usable condition;

(f) the cost of transporting, handling, packing, and loading motor vehicles, supplies, parts, accessories, signs, special tools, equipment, and furnishings;

(g) subject to Subsection (5), reasonable compensation to the franchisee for any cost incurred pertaining to the unexpired term of a lease agreement for the dealership's existing location;

(h) the negotiated fair market value of the dealership premises, based on the fair market value of the real property, if the dealer opts to sell the dealership premises; and

(i) compensate the franchisee for the blue sky or goodwill of the dealership, as determined in accordance with the applicable industry standards taking into consideration the effect that the timing of the manufacturer's announcement of discontinuance of a line make has or will have on future profitability of the dealership.

(2) Subsections (1)(g), (h), and (i) do not apply if a franchise is terminated:

(a) by the franchisor for cause as defined in Subsections 13-14-301(1)(b) and (2)(a);

(b) upon mutual written agreement of the franchisor and franchisee as provided in Subsection 13-14-301(2)(b); or

(3) The franchisor shall pay the franchisee the amounts specified in Subsection (1) within 90 days after the tender of the property to the franchisor if the franchisee:

(a) has clear title to the property; and

(b) is in a position to convey title to the franchisor.

(4) If repurchased inventory, equipment, or demonstrator vehicles are subject to a security interest, the franchisor may make payment jointly to the franchisee and to the holder of the security interest.

(5) Subsection (1)(g) does not relieve the franchisee or its lessor from an obligation under their lease agreement to mitigate damages.

(6)

(a) This section does not apply to a franchisee's voluntary termination or noncontinuation of its franchise that occurs as a result of the franchisee's sale of its dealership business entity or substantially all of the assets of that entity to a third party if the franchisor contemporaneously grants a franchise to the third party on terms and conditions that are comparable to those of the terminating or noncontinuing franchise.

(b) Subsection (6)(a) may not be construed to impair a contractual right of a terminating or noncontinuing franchisee under a franchise or related agreement with a franchisor or its affiliate, including a right to return unsold parts.

(7) This section does not apply to a termination, cancellation, or nonrenewal of:

(a) a recreational vehicle franchise; or

(b) a line-make by a recreational vehicle franchisor.

§ 13-14-307.5 Termination, cancellation, or nonrenewal of a recreational vehicle franchise agreement.

(1) This section applies only to a recreational vehicle franchisee's termination, cancellation, or nonrenewal of:

(a) a recreational vehicle franchise; or

(b) a recreational vehicle line-make.

(2)

(a) A recreational vehicle franchisee may, at any time and with or without good cause, terminate, cancel, or not renew its recreational vehicle franchise agreement or a recreational vehicle line-make by giving 30 days' prior written notice to the recreational vehicle franchisor.

(b) A franchisee has the burden of showing that a termination, cancellation, or nonrenewal is for good cause.

(i) the franchisor is convicted of or enters a plea of nolo contendere to a felony;

(ii) the business operations of the franchisor are:

(A) abandoned; or

(B) closed for 10 consecutive business days, unless the closing is due to an act of God, a strike, a labor difficulty, or another cause over which the franchisor has no control;

(iii) the franchisor makes a misrepresentation that materially and adversely affects the business relationship with the recreational vehicle franchisee;

(iv) a material violation of this chapter is not cured within 30 days after the franchisee gives 30 days' written notice of the violation to the recreational vehicle franchisor; or

(v) the recreational vehicle franchisor:

(A) becomes insolvent;

(B) declares bankruptcy; or

(3) If the franchisee terminates, cancels, or does not renew the recreational vehicle franchise agreement or line-make for cause, the franchisor shall, at the franchisee's election and within 45 days after termination, cancellation, or nonrenewal, repurchase:

(a)

(i) all new, unaltered recreational vehicles, including demonstrators, that the franchisee acquired from the franchisor within 18 months before the date of the termination, cancellation, or nonrenewal; and

(ii) for a repurchase price equal to 100% of the original net invoice cost, including transportation, reduced by:

(A) any applicable rebates and discounts to the franchisee; and

(B) the cost to repair any damage to a repurchased recreational vehicle, if the vehicle is damaged after delivery to the franchisee but before repurchase occurs;

(b)

(i) all undamaged accessories and proprietary parts sold by the recreational vehicle franchisor to the franchisee within one year before termination, cancellation, or nonrenewal, if accompanied by the original invoice; and

(ii) for a repurchase price equal to 100% of the original net invoice cost, plus an additional 5% of the original net invoice cost to compensate the franchisee for packing and shipping the returned accessories and parts to the franchisor; and

(c)

(i) any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery that:

(A) the franchisee purchased:

(I) from the franchisor within five years before termination, cancellation, or nonrenewal; and

(II) at the franchisor's request or because of the franchisor's requirement; and

(B) are no longer usable in the normal course of the franchisee's ongoing business, as the franchisee reasonably determines; and

(ii) for a repurchase price equal to 100% of the original net cost that the franchisee paid, plus any applicable shipping charges and sales taxes.

(4) A recreational vehicle franchisor shall pay the franchisee all money due under Subsection (3) within 30 days after the franchisor's receipt of the repurchased items.

§ 13-14-308 Private right of action.

(1) A franchisee has a private right of action for actual damages and reasonable attorney fees against a franchisor for a violation of this chapter that results in damage to the franchisee.

(2)

(a) As used in this Subsection (2):

(i) "New franchisor" has the same meaning as defined in Section 13-14-302.5.

(ii) "Reinstated franchise" has the same meaning as defined in Section 13-14-302.5.

(iii) "Reinstated franchisee" has the same meaning as defined in Section 13-14-302.5.

(b) A reinstated franchisee has a private right of action for actual damages and reasonable attorney fees against a new franchisor if:

(i) the new franchisor:

(A) establishes a new franchisee of the same line-make as a line-make of the reinstated franchisee within the relevant market area of the reinstated franchisee; or

(B) adds a line-make to another franchisor's existing franchisee within the relevant market area of the reinstated franchisee that is the same line-make as a line-make of the reinstated franchisee; and

(ii) the franchisor's action under Subsection (2)(b)(i) causes a substantial diminution in value of the reinstated franchisee's reinstated franchise.

(c) A new franchisor may not be held liable under Subsection (2)(b) based on a franchisee's purchase of another existing franchise, both of which are within the relevant market area of a reinstated franchisee, for the purpose of combining the purchased franchise with the franchise of the purchasing franchisee.

§ 13-14-309 Change in distribution plan.

If there is a change in the plan of distribution of a line make that contemplates a continuation of that line make in the state, a manufacturer or distributor may not directly or indirectly, through the action of any parent of the manufacturer or distributor, subsidiary of the manufacturer or distributor, or common entity cause a termination, cancellation, or nonrenewal of a dealer franchise agreement by a present or previous manufacturer or distributor unless, by the effective date of the action the manufacturer or distributor offers the new motor vehicle dealer whose dealer franchise agreement is terminated, cancelled, or not renewed, a dealer franchise agreement that is substantially similar to the dealer franchise agreement that existed with the previous manufacturer or distributor allowing the dealer to represent the line make under the new plan of distribution.

§ 13-14-310 Reporting requirement.

By September 1 of each year, the advisory board shall submit, in accordance with Section 68-3-14, an annual written report to the Business and Labor Interim Committee that, for the fiscal year immediately preceding the day on which the report is submitted, describes:

(1) the number of applications for a new or relocated dealership that the advisory board received; and

(2) for each application described in Subsection (1):

(a) the number of protests that the advisory board received;

(b) whether the advisory board conducted a hearing;

(d) the basis for any disposition described in Subsection (2)(c).

Chapter 14a Equipment Repurchase from Retail Dealers

§ 13-14a-1 Definitions.

(1)

(a) "Dealer" means any person, firm, or corporation engaged in the business of selling and retailing farm equipment, implements, utility and light industrial equipment, attachments, or repair parts, and includes retailers of yard and garden equipment not primarily engaged in the farm equipment business.

(b) "Dealer" does not include:

(i) a person who is engaged in the business of sales and service of heavy industrial or construction equipment; or

(ii) a person, firm, or corporation who serves as the dealer for a membership group purchasing program.

(2) "Independent wholesaler" means a person, firm, or corporation who stocks inventory for resale to retail dealers and who holds title to that inventory.

(3) "Manufacturer" means any person, firm, or corporation engaged in the business of manufacturing and distributing for retail sale farm implements, machinery, utility and light industrial equipment, attachments, or repair parts, and includes manufacturers of yard and garden equipment not primarily intended for farm use.

(4) "Parts inventory" means repair parts held for resale and used to service farm implements, machinery, attachments, utility and light industrial equipment, and yard and garden equipment.

(5) "Sales agreement" means a written, verbal, or implied on-going agreement between a dealer and a manufacturer or wholesaler under which the dealer agrees to sell at retail those items supplied by the manufacturer or wholesaler. "Sales agreement" can include an assignment of an exclusive sales area by the manufacturer or wholesaler or the filing of UCC security documents by the manufacturer or wholesaler.

(6) "Wholegoods" or "wholegoods inventory" means assembled or complete units of farm implements, machinery, utility and light industrial equipment, and yard and garden equipment and includes assembled or complete attachments.

(7) "Wholesaler" as an entity's business or as the context requires may mean:

(a) an independent wholesaler engaged in the business of distributing for retail sale the items listed in Subsection (4) or (6), that is obligated under Section 13-14a-2 to accept new and unsold wholegoods and parts from retailers on behalf of the manufacturer, but the obligation of the wholesaler may not exceed the obligation of the manufacturer; or

(b) a dealer, as defined in Subsection (1), who in addition to retailing distributes equipment at the wholesale level.

§ 13-14a-2 Right of return on termination of retailing agreement -- Credit on return.

(1) Upon termination of all sales agreements in which the dealer has agreed to offer the products of the manufacturer or wholesaler for retail sale and to stock wholegoods and parts inventories as may or may not be required by the manufacturer or wholesaler, the retailer is entitled to payment or credit from the manufacturer or wholesaler for all new and unsold wholegoods and parts inventories held by the dealer on the date the agreement was terminated.

(2)

(a) Except as otherwise provided in this section, the amount of payment or credit due for unsold and undamaged wholegoods is 100% of the original invoice price paid by or invoiced to the dealer, plus any freight charges paid by or billed to the dealer, less any volume, sales, or special discounts on the wholegoods previously paid to the dealer.

(b) The manufacturer shall bear the freight charges incurred by the dealer in shipping any wholegoods inventory to the manufacturer's choice of destination. The dealer is responsible for freight charges from the dealer's location to the wholesaler on inventory purchased from that wholesaler.

(3)

(a) Payment or credit due to the dealer on wholegoods inventory that has been in the dealer's inventory for more than 36 months from the date of invoice may be adjusted downward from the original invoice price to cover demonstration or rental use. The amount of adjustment shall be agreed upon by the dealer and the manufacturer or wholesaler, but in no case shall the adjustment cause the value of the wholegood to go below the wholesale value listed for that equipment in the edition of the trade-in guide customarily used by dealers or if the equipment is not listed in the trade-in guide, the local retail auction price will prevail at the dealer's choice.

(b) If an agreement cannot be made on adjustment, the adjustment shall be submitted to arbitration under procedures approved by both the manufacturer and the dealer. The manufacturer shall pay the cost of the arbitration.

(4)

(a) The amount of payment or credit due to the dealer for parts inventory is 100% of the current wholesale price of the parts listed in the manufacturer's or wholesaler's price book.

(b) The dealer is entitled to reimbursement for any handling or packaging incurred to return the parts inventory to the manufacturer or wholesaler in the amount of 5% of the currently listed wholesale price of the returned parts. The manufacturer or wholesaler shall bear the freight cost to return the inventory to their choice of destination.

(5)

(a) New, unsold parts that are listed and priced in the manufacturer's or wholesaler's price book at the time of the termination of the agreement are eligible for return.

(b) Parts with superseded part numbers are eligible for return at 85% of the price listed for the superseding part number, if they meet the criteria of being new and unsold.

(c) Parts that have been deleted from the price book within the previous 24 months prior to termination of the sales agreement shall be repurchased at 50% of the last published price.

(d) Parts that are not eligible for return are:

(i) parts that are normally sold at retail in packages of two or more due to precision machining, such as piston rings or connecting rod bearing liners, if one of the parts is missing; and

(ii) any parts that are improperly identified.

(e) Package quantity between the dealer and the manufacturer or wholesaler will not be cause for rejection of a returned part.

(f) Parts manuals, service manuals, and owners manuals that the dealer has purchased and held for resale at retail shall be repurchased at current wholesale cost.

(6) Upon the payment or credit due to the dealer's account of the amounts required by this section, title to the wholegoods, attachments, and parts inventories is vested in the manufacturer or wholesaler and the manufacturer or wholesaler is entitled to possession of those items.

(7) All credits due and the final payments to the dealer shall be made within 60 days of the date of shipment of the inventory back to the manufacturer or wholesaler.

(8) Special tools for repair of the manufacturer's equipment that the dealer maintains or tools that the manufacturer requires the dealer to maintain shall be repurchased by the manufacturer upon termination of the agreement. The repurchase price shall be the fair market value, but may not be less than 25% of the replacement cost for a usable tool.

(9) The manufacturer shall repurchase for fair market value:

(a) any sign that the dealer has purchased for the exclusive advertisement of the manufacturer's or wholesaler's product; and

(b) any computer or communication equipment the dealer has purchased for direct interface with the manufacturer or wholesaler.

(10) In calculating the fair market value of any item the manufacturer or wholesaler shall repurchase under Subsection (9), the depreciation of the item may not exceed 10% a year for the useful life of the item, but may not go below 25% of the replacement cost.

(11)

(a) A representative or agent of a manufacturer who does not stock inventory for resale or does not hold or anticipate holding title to any inventory is exempt from the repurchase obligations of this chapter.

(b) If a sales agreement is terminated, the manufacturer bears the responsibility to repurchase inventory sold by a manufacturer's representative or agent.

§ 13-14a-3 Right of return on death of dealer -- Continuation of business by heirs or survivors -- Right to sell business.

(1) Upon the death of a dealer, the death of a general partner in a partnership operating as a dealer, or the death of a majority shareholder in a corporation operating as a dealer, the manufacturer or wholesaler shall repurchase the inventory under Section 13-14a-2.

(2) Subsection (1) does not apply if the heirs of the decedent, the remaining partners, or the remaining shareholders elect to continue to operate the dealership and reaffirm an existing agreement or enter into a new agreement with the manufacturer or wholesaler within 180 days or any longer period as they may agree.

(3) A manufacturer may not unreasonably withhold approval of a new sales agreement from a third party if:

(a) the dealer elects to sell the dealer's business to the third party; or

(b) on the death of a dealer, the death of a general partner in a partnership operating as a dealer, or the death of a majority shareholder in a corporation operating as a dealer, the heirs of the decedent, the remaining partners, or the remaining shareholders elect to sell the business to the third party.

§ 13-14a-4 Termination of retailing agreement at will.

Any retailing agreement between a dealer and a manufacturer or wholesaler that is entered into or renewed after May 1, 1989, shall terminate at will, notwithstanding any agreement or law to the contrary, upon written notice of termination from the dealer. Any right arising from a prior breach of the contract survives a termination under this section.

§ 13-14a-5 Notice or consent required before changing terms of retailing agreement -- Limitations on pledge of personal assets -- Cancellation of retailing agreement.

(1) Each manufacturer, wholesaler, financing subsidiary or division of the manufacturer, or any independent lender shall give the dealer prior written notice and obtain the dealer's consent before:

(a) changing either the time or manner of payment;

(b) making any changes in notes or security;

(d) granting extensions or renewals in payment schedules on any contract that is executed by the dealer in behalf of and in the name of any third purchaser of goods or services in which the dealer is obligated to assume contingent liability for the repurchase of that contract upon default by that third party.

(2) A person who signs a security agreement or guarantee agreement with a manufacturer or wholesaler may not be required to pledge or encumber the person's personal assets in a value in excess of the amount of the indebtedness secured.

(3) If any manufacturer or wholesaler fails to give notice or obtain consent under Subsection (1), or fails to comply with Subsection (2), the guarantee or security agreement affected is considered cancelled and terminated.

§ 13-14a-6 Security interest of wholesaler or manufacturer not affected.

This chapter may not be construed to affect in any way any security interest that the wholesaler or manufacturer may have in the inventory of the dealer. The retailer, manufacturer, or wholesaler may furnish a representative to inspect all parts and certify their acceptability when packed for shipment.

§ 13-14a-7 Attorneys' fees and court costs -- Punitive damages.

The court, in any action to compel compliance with this chapter, shall award costs and reasonable attorneys' fees to the prevailing party. The court may award punitive damages.

§ 13-14a-8 Contractual right of return -- Election of penalties.

If the agreement between a dealer and a manufacturer or wholesaler confers rights and duties covering the return of wholegoods and parts inventories upon termination of the agreement, the dealer may elect to proceed under the agreement. The dealer is not considered to have made this election to the extent that the rights and duties conferred by this chapter exceed those conferred by the sales agreement.

§ 13-14a-9 Continuing obligation of manufacturer or wholesaler.

(1) If a manufacturer or wholesaler is purchased by or merges with another company, the purchasing or surviving entity shall bear all of the responsibilities of the original or purchased manufacturer or wholesaler under this chapter.

(2) If a manufacturer sells a product line, the purchasing entity bears the responsibility of repurchase.

(3) In the case of a wholesaler who discontinues representing a line for any reason, the manufacturer of that line bears the responsibility to repurchase.

Chapter 14b Uniform Equipment Dealers Warranty Reimbursement Act

§ 13-14b-101 Title.

This chapter is known as the "Uniform Equipment Dealers Warranty Reimbursement Act."

§ 13-14b-102 Definitions.

As used in this chapter:

(1) "Audit" means a review by a supplier of a dealer's warranty claims records.

(2) "Current net price" means the price charged to a dealer for repair parts as listed in the printed price list or catalog or invoice of the supplier in effect at the time a warranty claim is submitted.

(3) "Dealer agreement" means an oral or written contract or an agreement of definite or indefinite duration, between a supplier and an equipment dealer that authorizes or requires the equipment dealer to perform services or supply parts under a warranty, or to do both.

(4) "Equipment dealer" or "dealer" means a person or any other entity having a dealer agreement for selling and retailing:

(a) agricultural equipment;

(b) dairy and farmstead mechanization equipment;

(d) outdoor power equipment;

(e) lawn and garden equipment; or

(f) attachments or repair parts for equipment listed in Subsections (4)(a) through (e).

(5)

(a) "Supplier" means a person or any other entity engaged in the manufacturing, assembly, or wholesale distribution of an item listed in Subsections (4)(a) through (f).

(b) "Supplier" includes:

(i) any successor in interest, including a purchaser of assets or stock; and

(ii) a surviving corporation resulting from a merger, liquidation, or reorganization of the original supplier that issued the warranty.

(6) "Warranty claim" means a claim for payment submitted by an equipment dealer to a supplier for service or parts, or both, provided to a customer under a:

(a) warranty issued by the supplier; or

(b) recall or modification order issued by the supplier.

§ 13-14b-103 Warranty claims.

(1) An equipment dealer may submit a warranty claim to a supplier if a warranty defect is identified and documented prior to the expiration of a supplier's warranty:

(a) while a dealer agreement is in effect; or

(b) after the termination of a dealer agreement if the claim is for work performed while the dealer agreement was in effect.

(2)

(a) A supplier shall accept or reject a warranty claim submitted under Subsection (1) within 30 days of the date the supplier received the claim.

(b) A warranty claim not rejected within 30 days of the date the supplier received the claim is considered to be accepted by the supplier.

(3) No later than 30 days after the date a warranty claim is accepted or rejected under Subsection (2), the supplier shall:

(a) pay an accepted warranty claim; or

(b) send the dealer written notice of the reason the warranty claim was rejected.

(4)

(a)

(i) A supplier shall compensate the dealer for the warranty claim as follows:

(A) the dealer's established customer hourly retail labor rate multiplied by the reasonable and customary amount of time required to complete such work, including diagnostic time, expressed in hours and fractions of an hour;

(B) the dealer's current net price plus 20% for parts to reimburse the dealer for reasonable costs of doing business in performing the warranty service on the supplier's behalf; and

(ii) For purposes of Subsection (4)(a)(i)(C), "extraordinary freight and handling costs" mean costs that are above and beyond the normal reimbursement policy of the supplier for warranty repair work.

(b)

(i) The supplier shall give due consideration to any extraordinary expenses incurred by the dealer in performing necessary warranty repairs.

(ii) If the repair work is for safety or mandatory modifications ordered by the supplier, the supplier shall reimburse the dealer for transportation costs incurred by the dealer.

(5) After payment of a warranty claim, a supplier may not charge back, off-set, or otherwise attempt to recover from the dealer all or part of the amount of the claim unless:

(a) the warranty claim was fraudulent;

(b) the services for which the warranty claim was made were not properly performed or were unnecessary to comply with the warranty; or

(c) the dealer did not substantiate the warranty claim according to the written requirements of the supplier that were in effect when the equipment was delivered to the dealer by the customer for warranty repairs.

(6) If a supplier denies a warranty claim due to a particular item or part of the claim, the denial shall only affect the items or parts in question and not the complete warranty claim.

(7) A supplier may not pass the cost of covering warranty claims under this chapter on to a dealer through any means including:

(a) surcharges;

(b) reduction of discounts; or

(8)

(a) The provisions of this chapter do not apply to a supplier or dealer where a written dealer agreement provides for compensation to a dealer for warranty labor and parts costs either as part of the pricing of the equipment to the dealer or in the form of a lump-sum payment.

(b) The lump-sum payment under Subsection (8)(a) shall be at least 5% of the suggested retail price of the equipment.

§ 13-14b-104 Audits.

(1) A supplier may not audit a dealer's records concerning any paid warranty claim that was submitted to the supplier more than one year before the day on which the audit begins, except where an audit of records made within the one-year time period shows fraudulent claims, in which case this provision does not apply.

(2)

(a) After payment or rejection of a warranty claim under Subsection 13-14b-103(2), a supplier may not audit a warranty claim more than once.

(b) Subsection (2)(a) may not prevent a supplier from requiring additional information from a dealer if an initial audit finds potential errors, fraud, or inconsistencies.

§ 13-14b-105 Relief.

(1) A dealer may bring an action in a court of competent jurisdiction to obtain payment of a warranty claim submitted under this chapter to a supplier if a supplier:

(a) fails to make payment in accordance with the provisions of this chapter;

(b) wrongfully rejects the dealer's warranty claim; or

(2) The court shall award the dealer costs and reasonable attorney's fees if it finds that the supplier has committed a violation under Subsection (1)(a), (b), or (c).

Chapter 15 Business Opportunity Disclosure Act

Part 1 General Provisions

§ 13-15-102 Definitions.

As used in this chapter:

(1)

(a) "Business opportunity" means an arrangement under which a person:

(i) sells or leases a product, equipment, a supply, or a service:

(A) upon payment of initial required consideration of at least $500; and

(B) for the purpose of enabling the buyer or lessee to start a business; and

(ii) represents to the buyer or lessee that:

(A) the person will provide a location or assist the buyer or lessee find a location for the use or operation of a vending machine, rack, display case, or other similar device, or a currency-operated amusement machine or device, on premises neither owned nor leased by the person nor the buyer or lessee;

(B) the person will purchase a product the buyer or lessee makes, produces, fabricates, grows, or modifies, using in whole or in part the product, equipment, supply, or service the buyer or lessee buys or leases from the person;

(C) the person will provide the buyer or lessee with a guarantee that the buyer or lessee will receive income from the product, equipment, supply, or service the buyer or lessee buys or leases from the person that exceeds the amount the buyer or lessee pays to buy or lease the product, equipment, supply, or service, and if not the person will repurchase the product, equipment, supply, or service, if the buyer or lessee is dissatisfied; or

(D) the buyer or lessee will or may derive income from the business described in Subsection (1)(a)(i) that exceeds the amount the buyer or lessee pays to buy or lease the product, equipment, supply, or service.

(b) "Business opportunity" does not include:

(i) the sale of an ongoing business when the owner of that business sells and intends to sell only that one business; or

(ii) not-for-profit sale of sales demonstration equipment, materials, or samples for a total price of $500 or less.

(2) "Division" means the Division of Consumer Protection established by Section 13-2-102.

(3) "Franchise" means the same as that term is defined by Federal Trade Commission rules governing franchise and business opportunity ventures.

(4) "Guarantee" means a written agreement that:

(a) a purchaser and seller sign; and

(b) discloses the complete details and each limitation or exception of the agreement.

(5)

(a) "Initial required consideration" means the total amount a purchaser is obligated to pay under the terms of a business opportunity:

(i) before the day on which the purchaser receives the product, equipment, supply, or service;

(ii) the day on which the purchaser receives the product, equipment, supply, or service; or

(iii) within six months after the day on which the purchaser and seller enter into the business opportunity.

(b) "Initial required consideration" includes the sum of any down payment and the total of all additional payments, if the purchaser's payment under the terms of the business opportunity is over a period of time.

(c) "Initial required consideration" does not include the not-for-profit sale of sales demonstration equipment, materials, or supplies for a total amount of less than $500.

(6) "Principal" means as the division determines by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(7) "Purchaser" means a person who buys or leases from another person a business opportunity.

(8) "Registered trademark" or "service mark" means a trademark, trade name, or service mark registered with the United States Patent and Trademark Office, or Utah, or the state of incorporation if a corporation.

(9)

(a) "Seller" means a person who offers to sell, offers to lease, sells, or leases to another person a business opportunity or a franchise.

(b) "Seller" does not include an individual representative or salesperson, unless the individual is a principal of a sole proprietorship, partnership, association, joint venture, corporation, firm, or other organization or entity used in carrying on a business, that offers to sell, offers to lease, sells, or leases to another person a business opportunity or a franchise.

Part 2 Seller Duties

§ 13-15-201 Required filings -- Fees -- Rulemaking.

(1)

(a) Except as provided in Subsection (2), before a person may act as a seller in the state, the person shall obtain a proof of disclosure receipt from the division.

(b) To obtain a proof of disclosure receipt from the division, a person shall:

(i) file with the division a disclosure statement that complies with Section 13-15-202;

(ii) provide any information the division requires by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(iii) pay a filing fee as determined by the division in accordance with Section 63J-1-504.

(d) To renew a proof of disclosure receipt, a seller shall comply with the provisions of Subsection (1)(b) at least 30 days before the day on which the seller's current proof of disclosure receipt expires.

(2)

(a) Before a person offers for sale or sells a franchise to be located in the state or to a resident of the state, the person shall obtain a proof of notice receipt from the division.

(b) To obtain a proof of notice receipt from the division, a person shall:

(i) file with the division, in a manner the division determines, a notice that states:

(A) the franchisor is in substantial compliance with the requirements of the Federal Trade Commission rule found at Title 16, Chapter I, Subchapter d, Trade Regulation Rules, Part 436, Disclosure Requirements and Prohibitions Concerning Franchising;

(B) the name of the applicant;

(D) the name under which the applicant intends to transact or transacts business, if different than the name of the franchise;

(E) the address of the applicant's principal place of business;

(F) the applicant's state-issued business entity number or other government-issued, publicly available identifying number; and

(G) any information that the division requires by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(ii) pay a filing fee the division sets in accordance with Section 63J-1-504.

(d) A proof of notice receipt is valid for one year after the day on which the division issues the receipt.

(e) To renew a proof of notice receipt, a person offering for sale or selling a franchise to be located in the state or to a resident of the state, shall comply with the provisions of Subsection (2)(b) at least 30 days before the day on which the person's current proof of notice receipt expires.

(3) The division shall deposit all fees collected under this section into the Commerce Service Account created in Section 13-1-2.

(4) The division may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to carry out the provisions of this section.

(5) If information contained in a filing with the division becomes incorrect or incomplete, the filer shall update the information within 30 days after the day on which the information contained on the filing becomes incorrect or incomplete.

(6) A proof of disclosure receipt or a proof of notice receipt does not constitute an approval or endorsement of the seller by the division or the state.

(7) A seller may not:

(a) represent the division or the state endorses or approves the seller;

(b) omit from a filing with the division a material statement of fact required by this chapter or rule made by the division in accordance with this chapter; or

(c) include in a filing with the division a material statement of fact that the seller or the seller's principal knew or should have known is false, deceptive, inaccurate, or misleading.

§ 13-15-202 Disclosure statements.

(1) An applicant for a proof of disclosure receipt under Subsection 13-15-201(1) shall include the following in a disclosure statement:

(a) the name, address, and principal place of business of:

(i) the applicant; and

(ii) each parent, affiliate, or holding company of the applicant that is responsible for a statement that the applicant makes;

(b) an individual statement from each of the following, detailing the person's business experience for the five-year period immediately before the day on which the applicant files the disclosure statement:

(i) the applicant;

(ii) each parent company of the applicant;

(iii) each current director of the applicant; and

(iv) each current executive officer of the applicant;

(i) an individual statement from each person described in Subsections (1)(b)(i) and (ii) detailing the length of time, during the five-year period immediately before the day on which the applicant files the disclosure statement, the person has:

(A) operated a business of the type the purchaser would operate under the business opportunity; and

(B) offered to sell or lease that type of business opportunity;

(ii) each trademark, trade name, service mark, advertisement, or other commercial symbol that identifies a product, equipment, a supply, or a service that the applicant sells or leases under the business opportunity;

(iii) a complete statement of:

(A) the total amount that a purchaser pays to obtain or commence the operation of the business under the business opportunity;

(B) if all or part of a fee or deposit described in Subsection (1)(c)(iii)(A) is refundable, the conditions under which the fee or deposit is refundable;

(C) the product, equipment, supply, or service the applicant provides or performs for a purchaser under the business opportunity; and

(D) each oral, written, visual, or other representation that the applicant makes to a prospective purchaser about specific levels of potential sales, income, or gross and net profits under the business opportunity;

(iv) a complete description of:

(A) the type and length of training the applicant promises to a prospective purchaser, if any;

(B) each service the applicant promises to perform in connection with the placement of equipment, a product, or a supply at a location from which the equipment, product, or supply will be sold or used; and

(C) each agreement the applicant makes with an owner or manager of a location where a purchaser's equipment, product, or supply is placed; and

(v) a complete copy of each contract to which a purchaser under the business opportunity would be party;

(d) the total number of business opportunities the applicant has entered into as a seller in each state;

(e) the total number of business opportunities that the applicant has canceled within the 12 months before the day on which the applicant files the disclosure statement;

(f) the total number of business opportunities, to which the applicant is a party, for which a purchaser has requested a refund or cancellation within the 12 months before the day on which the applicant files the disclosure statement;

(g) a statement that discloses each person identified in Subsection (1)(a) who:

(i) has been convicted of a felony or misdemeanor or pleaded no contest to a felony or misdemeanor charge, if the felony or misdemeanor involved fraud, embezzlement, fraudulent conversion, or misappropriation of property;

(ii) has been held liable or consented to the entry of a stipulated judgment in an administrative or civil action based upon:

(A) fraud, embezzlement, fraudulent conversion, misappropriation of property;

(B) the use of untrue or misleading representations; or

(iii) is subject to an injunction or restrictive order relating to business activity as the result of a government agency action;

(h) a financial statement from the applicant that is:

(i) less than 13 months old; and

(ii) signed by an officer, director, trustee, or general or limited partner of the applicant, under a declaration that certifies that to the signatory's knowledge and belief the information in the financial statement is true and accurate; and

(i) a cover sheet that:

(i) is attached to the front or appears at the beginning of the disclosure statement; and

(ii) conspicuously states in at least 12-point upper- and lower-case boldface type:

(A) the name of the applicant;

(B) the date on which the applicant files the disclosure;

"INFORMATION FOR PURCHASE OF A BUSINESS OPPORTUNITY:

To protect you, the State of Utah has required your seller to give you this disclosure statement. The State of Utah has not verified the accuracy of the information in the disclosure statement."; and

(D) if the applicant makes a representation described in Subsection (1)(c)(iii)(D) or 13-15-102(1)(a)(ii)(D) the following notice:

"CAUTION

The number of purchasers who have earned through this business opportunity an amount in excess of the amount the purchaser pays for the business opportunity is at least _____ which represents at least _____% of the total number of purchasers of this business opportunity."

(2) The disclosure statement described in Subsection (1) may not include material or information other than the material and information required under Subsection (1).

§ 13-15-203 Disclosure statement furnished to purchaser -- Additional nondeceptive information permitted.

(1) A seller shall provide the disclosure statement described under Section 13-15-202 to a prospective purchaser at least 10 business days before the day on which the earlier of the following occurs:

(a) the prospective purchaser executes an agreement imposing a binding legal obligation on the prospective purchaser in connection with the seller's sale or proposed sale of a business opportunity; or

(b) the prospective purchaser makes a payment or provides consideration in connection with the seller's sale or proposed sale of a product or business opportunity.

(2) A seller may provide a prospective purchaser nondeceptive information apart from the disclosure statement described in Section 13-15-202, if the information does not contradict the information required in the disclosure statement.

Part 3 Enforcement

§ 13-15-301 Administration and enforcement -- Powers -- Legal counsel -- Fees.

(1) The division shall administer and enforce the provisions of this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2)

(a) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(i) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(ii) the division may bring an action in a court of competent jurisdiction to enforce a provision of this chapter.

(b) In a court action by the division to enforce a provision of this chapter, the court may:

(i) declare that an act or practice violates a provision of this chapter;

(ii) issue an injunction for a violation of this chapter;

(iii) order disgorgement of any money received in violation of this chapter;

(iv) order payment of disgorged money to an injured purchaser or consumer;

(v) impose a fine of up to $2,500 for each violation of this chapter; or

(vi) award any other relief that the court deems reasonable and necessary.

(3) If a court of competent jurisdiction grants judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(4)

(a) A person who violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.

(b) A civil penalty authorized under this section may be imposed in any civil action brought by the division.

§ 13-15-302 Private right of action.

(1) A purchaser may bring an action in a court of competent jurisdiction against a seller who does not comply with this chapter.

(2) If a court of competent jurisdiction finds that a seller violated this chapter, a purchaser who brings an action under Subsection (1) is entitled to:

(a) rescission of the contract;

(b) an award of reasonable attorney fees and costs of court in an action to enforce the right of rescission; and

(i) actual damages; or

(ii) $2,000.

§ 13-15-303 Denial, suspension, or revocation of proof of disclosure receipt or proof of notice receipt.

In accordance with Chapter 2, Division of Consumer Protection, and Title 63G, Chapter 4, Administrative Procedures Act, the division may initiate adjudicative proceedings to deny, suspend, or revoke, a proof of disclosure receipt or proof of notice receipt if:

(1) the division finds that the denial, suspension, or revocation is in the public interest; and

(2)

(a) the filing is incomplete, false, or misleading; or

(b) the seller or seller's principal:

(i) violates, causes a violation, or allows a violation or fails to satisfy the requirements of a provision of:

(A) this chapter; or

(B) a rule the division makes in accordance with this chapter;

(ii) violates Chapter 11, Utah Consumer Sales Practices Act;

(iii) is enjoined by a court, or is the subject of an administrative or judicial order issued in Utah or another state, if the order:

(A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or

(B) is based on a finding of a lack of integrity, truthfulness, or mental competence;

(iv) is convicted of a crime involving theft, fraud, or dishonesty;

(v) obtains or attempts to obtain a proof of disclosure receipt or proof of notice receipt by misrepresenting a material fact;

(vi) fails to provide information the division requests;

(vii) fails to pay an administrative fine imposed by the division or an administrative or judicial order; or

(viii) fails to pay the fee to file a registration application or a renewal application.

Chapter 19 Shopping Cart Retrieval Business

§ 13-19-1 Definition.

As used in this section, "shopping cart retrieval business" means the business of searching for, gathering, and restoring possession to the merchant or owner, for compensation or in expectation of compensation, of shopping carts located outside the premises of a retail mercantile establishment.

§ 13-19-2 Written authorization required.

Every person who engages in the shopping cart retrieval business shall retain records, showing written authorization from the merchant or owner to retrieve the carts and to be in possession of those carts retrieved, and shall maintain a copy of that authorization in any vehicle utilized for that retrieval.

§ 13-19-3 Violation an infraction.

Notwithstanding the penalty provisions of Title 76, Chapter 6, Part 6, Retail Theft, a violation of this chapter is an infraction.

§ 13-19-4 Exemption.

Exempted under this act are nonprofit charitable organizations.

Chapter 20 New Motor Vehicle Warranties Act

§ 13-20-1 Short title.

This chapter is known as the "New Motor Vehicles Warranties Act."

§ 13-20-2 Definitions.

As used in this chapter:

(1) "Consumer" means an individual who enters into an agreement or contract for the transfer, lease, purchase of a new motor vehicle other than for purposes of resale, or sublease during the duration of the period defined under Section 13-20-5.

(2) "Manufacturer" means manufacturer, importer, distributor, or anyone who is named as the warrantor on an express written warranty on a motor vehicle.

(3) "Motor home" means a self-propelled vehicular unit, primarily designed as a temporary dwelling for travel, recreational, and vacation use.

(4)

(a) "Motor vehicle" includes:

(i) a motor home, as defined in this section, but only the self-propelled vehicle and chassis sold in this state;

(ii) a motor vehicle, as defined in Section 41-1a-102, sold in this state; and

(iii) a motorcycle, as defined in Section 41-1a-102, sold in this state if the motorcycle is designed primarily for use and operation on paved highways.

(b) "Motor vehicle" does not include:

(i) those portions of a motor home designated, used, or maintained primarily as a mobile dwelling, office, or commercial space;

(ii) a road tractor or truck tractor as defined in Section 41-1a-102;

(iii) a mobile home as defined in Section 41-1a-102;

(iv) any motor vehicle with a gross laden weight of over 14,000 pounds, except:

(A) a motor home as defined under Subsection (3); and

(B) a farm tractor as defined in Section 41-1a-102;

(v) a motorcycle, as defined in Section 41-1a-102, if the motorcycle is designed primarily for use or operation over unimproved terrain;

(vi) an electric assisted bicycle as defined in Section 41-6a-102;

(vii) a moped as defined in Section 41-6a-102; or

(viii) a motor assisted scooter as defined in Section 41-6a-102.

(5) "Recreational vehicle trailer" means a travel trailer, camping trailer, or fifth wheel trailer.

§ 13-20-3 Nonconforming motor vehicles -- Repairs.

If a new motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the term of the express warranties or during the one-year period following the date of original delivery of the motor vehicle to a consumer, whichever is earlier, the manufacturer, its agent, or its authorized dealer shall make repairs necessary to conform the vehicle to the express warranties, whether or not these repairs are made after the expiration of the warranty term or the one-year period.

§ 13-20-4 Nonconforming motor vehicles -- Replacement -- Refund -- Criteria -- Defenses.

(1) If the manufacturer, its agent, or its authorized dealer is unable to conform the motor vehicle to any applicable express warranty by repairing or correcting any defect or condition that substantially impairs the use, market value, or safety of the motor vehicle after a reasonable number of attempts, the manufacturer shall replace the motor vehicle with a comparable new motor vehicle or accept return of the vehicle from the consumer and refund to the consumer the full purchase price including all collateral charges, less a reasonable allowance for the consumer's use of the vehicle. Refunds shall be made to the consumer, and any lienholders or lessors as their interests may appear.

(2) A reasonable allowance for use is that amount directly attributable to use by the consumer prior to the consumer's first report of the nonconformity to the manufacturer, its agent, or its authorized dealer, and during any subsequent period when the vehicle is not out of service because of repair.

(3) Upon receipt of any refund or replacement under Subsection (1), the consumer, lienholder, or lessor shall furnish to the manufacturer clear title to and possession of the motor vehicle.

(4) It is an affirmative defense to any claim under this chapter:

(a) that an alleged nonconformity does not substantially impair the consumer's use of the motor vehicle and does not substantially impair the market value or safety of the motor vehicle; or

(b) that an alleged nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of a motor vehicle by a consumer.

§ 13-20-5 Reasonable number of attempts to conform.

(1) It is presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties, if:

(a) the same nonconformity has been subject to repair four or more times by the manufacturer, its agent, or its authorized dealer within the express warranty term or during the one-year period following the date of original delivery of the motor vehicle to a consumer, whichever is earlier, but the nonconformity continues to exist; or

(b) the vehicle is out of service to the consumer because of repair for a cumulative total of 30 or more business days during the warranty term or during the one-year period, whichever is earlier.

(2) The term of an express warranty, the one-year period, and the 30-day period shall be extended by any period of time during which repair services are not available to the consumer because of a war, invasion, strike, fire, flood, or other natural disaster.

§ 13-20-6 Enforcement -- Limited liability of dealer -- No limit on other rights or remedies.

(1) The Division of Consumer Protection shall, or a consumer may, enforce the rights created under this chapter. An action may be commenced by a consumer only after the claim has been investigated and evaluated by the division.

(2) This chapter may not be interpreted as imposing any liability on an authorized dealer or creating a cause of action by a consumer against a dealer under this chapter, except regarding any written express warranties made by the dealer apart from the manufacturer's own warranties.

(3) This chapter does not limit the rights or remedies which are otherwise available to a consumer under any other law.

(4) In an action initiated under this section by the consumer, the court may award attorneys' fees to the prevailing party.

§ 13-20-7 Use of dispute settlement procedure.

If a manufacturer has established an informal dispute settlement procedure which complies with Title 16, Code of Federal Regulations, Part 703, then Section 13-20-4 concerning refunds or replacement does not apply to any consumer who has not first resorted to this procedure.

§ 13-20-8 Mediation concerning nonconformity in recreational vehicle trailer.

(1) An owner who purchases a new recreational vehicle trailer and the manufacturer of the recreational vehicle trailer shall engage in mediation concerning resolution of a nonconformity in the recreational vehicle trailer, as provided in this section, if:

(a) the owner notifies the manufacturer in writing of the nonconformity;

(b) the nonconformity is manifest in the structural or functional integrity of the roof, subfloor, or wall of the recreational vehicle trailer;

(c) following notification under Subsection (1)(a), the manufacturer makes at least four attempts to correct the nonconformity, but the nonconformity persists;

(d) following at least four attempts by the manufacturer to correct the nonconformity, the owner submits to the manufacturer a written request for mediation;

(e) the nonconformity substantially impairs the use, value, or safety of the recreational vehicle trailer; and

(f) the nonconformity does not include a defect or condition that occurs as a result of:

(i) the use of the recreational vehicle trailer for business or commercial purposes; or

(ii) abuse, neglect, modification, or alteration of the recreational vehicle trailer by a person other than the manufacturer or the manufacturer's authorized service agent.

(2) Mediation under this section shall:

(a) take place in the county in which the owner purchased the recreational vehicle trailer; and

(b) be conducted by the Consumer Arbitration Program for Recreation Vehicles.

(3) The manufacturer of the recreational vehicle trailer shall pay the cost of mediation.

(4) The failure of mediation to resolve an owner's concerns about an alleged nonconformity in the owner's recreational vehicle trailer does not impair or affect any right or remedy the owner otherwise has under the law.

Chapter 21 Credit Services Organizations Act

Part 1 General Provisions

§ 13-21-101 Definitions -- Exemptions.

As used in this chapter:

(1) "Buyer" means an individual who is solicited to purchase or who purchases the services of a credit services organization.

(2) "Credit report" means a written, oral, or other communication of information by a consumer reporting agent relating to a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living that the consumer reporting agent uses or collects to serve as a factor in establishing the consumer's eligibility for credit for personal, family, or household purposes.

(3) "Credit reporting agency" means a person who, for a monetary fee, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third persons.

(4)

(a) "Credit score" means a numerical value or a categorization that a person:

(i) derives from information in a consumer report;

(ii) derives from a statistical tool or modeling system; and

(iii) develops to predict the likelihood of credit behavior.

(b) "Credit score" includes:

(i) a risk predictor; or

(ii) a risk score.

(5)

(a) "Credit services organization" means a person who represents that the person or an employee is a debt professional or credit counselor, or, with respect to the extension of credit by others, sells, provides, or performs, or represents that the person can or will sell, provide, or perform, in return for the payment of money or other valuable consideration any of the following services:

(i) improving a buyer's credit record, history, or rating;

(ii) providing advice, assistance, instruction, or instructional materials to a buyer with regard to Subsection (5)(a)(i); or

(iii) debt reduction or debt management plans.

(b) "Credit services organization" does not include:

(i) a person authorized to make loans or extensions of credit under the laws of this state or the United States who is subject to regulation and supervision by this state or the United States and who derives at least 35% of the person's income from making loans and extensions of credit;

(ii) a depository institution:

(A) as defined in Section 7-1-103; or

(B) that is regulated or supervised by the Federal Deposit Insurance Corporation or the National Credit Union Administration;

(iii) a person licensed as a principal broker under Title 61, Chapter 2f, Real Estate Licensing and Practices Act, if the person is acting within the course and scope of that license;

(iv) a person licensed to practice law in this state if:

(A) the person renders the services described in Subsection (5)(a) within the course and scope of the person's practice as an attorney; and

(B) the services described in Subsection (5)(a) are incidental to the person's practice as an attorney;

(v) a broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission if the broker-dealer is acting within the course and scope of that regulation;

(vi) a credit reporting agency if the services described in Subsection (5)(a) are incidental to the credit reporting agency's services; or

(vii) a person who provides debt-management services and is required to be registered under Title 13, Chapter 42, Uniform Debt-Management Services Act.

(6) "Division" means the Division of Consumer Protection established in Section 13-2-102.

(7) "Extension of credit" means the right to defer payment of debt or to incur debt and defer its payment, offered or granted primarily for personal, family, or household purposes.

§ 13-21-102 Credit services organizations -- Prohibitions.

(1) A credit services organization, the credit services organization's salespersons, agents, and representatives, and independent contractors who sell or attempt to sell the services of a credit services organization may not do any of the following:

(a) conduct any business regulated by this chapter without first:

(i) securing a certificate of registration from the division; and

(ii) unless exempted under Section 13-21-104, maintaining the following in a manner the division approves and in an amount of $100,000:

(A) a surety bond issued by a surety authorized to transact surety business in the state; or

(B) a certificate of deposit in a financial institution authorized under the laws of this state;

(b) charge or receive any money or other valuable consideration prior to full and complete performance of the services the credit services organization has agreed to perform for the buyer;

(c) dispute or challenge, or assist a person in disputing or challenging an entry in a credit report prepared by a consumer reporting agency without a factual basis for believing and obtaining a written statement for each entry from the person stating that that person believes that the entry contains a material error or omission, outdated information, inaccurate information, or unverifiable information;

(d) charge or receive any money or other valuable consideration solely for referral of the buyer to a retail seller who will or may extend credit to the buyer, if the credit that is or will be extended to the buyer is upon substantially the same terms as those available to the general public;

(e) make, or counsel or advise any buyer to make, any statement that is untrue or misleading and that is known, or that by the exercise of reasonable care should be known, to be untrue or misleading, to a credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer is applying for an extension of credit, with respect to a buyer's creditworthiness, credit standing, or credit capacity;

(f) make or use any untrue or misleading representations in the offer or sale of the services of a credit services organization or engage, directly or indirectly, in any act, practice, or course of business that operates or would operate as fraud or deception upon any person in connection with the offer or sale of the services of a credit services organization;

(g) represent that the division or the state endorses or approves the credit services organization;

(h) omit from a filing with the division a material statement of fact required by this chapter or rule that the division makes in accordance with this chapter;

(i) include in a filing with the division a material statement of fact that the credit service organization or credit service organization's principal knew or should have known to be false, deceptive, inaccurate, or misleading; or

(j) cause or attempt to cause a buyer to waive a right established by this chapter.

(2)

(a) The division may claim a credit service organization's surety bond or certificate of deposit for the benefit of a buyer who incurs damages as the result of the credit service organization's failure to comply with this chapter.

(b) After a buyer described in Subsection (2) recovers actual damages, the division may recover from the surety bond or certificate of deposit any administrative fines, civil penalties, investigative costs, attorney fees, and other costs of collecting and distributing funds in accordance with this chapter.

§ 13-21-103 Registration and suspension of registration.

(1) A credit services organization shall file an application for registration with the division before engaging in any activity regulated by this chapter.

(2) The credit services organization shall include in the application described in Subsection (1):

(a) the name, mailing and physical address, and telephone number of the credit services organization;

(b) the name of a person that owns or controls more than 5% of the credit services organization, either directly or through another person or entity;

(d) the credit service organization's registered agent for service of process in the state, and the registered agent's:

(i) name;

(ii) street address;

(iii) mailing address; and

(iv) telephone number;

(e)

(i) the case title, docket number, the names and addresses of all parties, and a detailed explanation of any administrative, civil, or criminal action in which the organization or any person identified in Subsection (2)(b) or (c) is a party to an administrative, civil, or criminal action that arose in this state or any other jurisdiction involving the offer to provide or the provision of services described in Subsection 13-21-101(5)(a); or

(ii) an unsworn declaration made in accordance with Title 78B, Chapter 18a, Uniform Unsworn Declarations Act, made by the credit services organization's chief executive officer or principal that neither the organization nor any person identified in Subsection (2)(b) or (c) is a party to any administrative, civil, or criminal action described in Subsection (2)(e)(i);

(f) a detailed outline of the credit services organization's credit services program that the credit services organization will offer in this state;

(g) a copy of any contract and other document that the credit services organization requires the consumer to sign;

(h) a registration fee determined by the division; and

(i) any information that the division requires by rule made in accordance with Title 63G, Chapter 3, Administrative Rulemaking Act.

(3) A credit services organization shall update registration information within 30 days after the day on which any information the credit services organization provided on the application described in Subsection (1) becomes incorrect or incomplete.

(4) In accordance with Chapter 2, Division of Consumer Protection, and Title 63G, Chapter 4, Administrative Procedures Act, the division may initiate adjudicative proceedings to deny, suspend, or revoke an application or registration if:

(a) the division finds that the denial, suspension, or revocation is in the public interest; and

(b)

(i) the registration is incomplete, false, or misleading; or

(ii) the applicant or applicant's principal:

(A) violates, causes a violation, allows a violation, or fails to satisfy the requirements of a provision of this chapter or a rule made by the division in accordance with this chapter;

(B) violates Chapter 11, Utah Consumer Sales Practices Act;

(D) is the subject of an administrative or judicial order issued in Utah or another state, if the order includes a finding or admission of fraud, breach of fiduciary duty, or material representation or the order was based on a finding of a lack of integrity, truthfulness, or mental competence;

(E) is convicted of a crime involving theft, fraud, or dishonesty;

(F) obtains or attempts to obtain a registration by misrepresenting a material fact;

(G) fails to provide information that the division requests;

(H) fails to pay an administrative fine imposed by the division or an administrative or a judicial order; or

(I) fails to pay the fee to file a registration application or a renewal application.

(5) To renew a registration, a credit services organization shall submit a registration application at least 30 days before the day on which the credit service organization's current registration expires.

(6) A credit services organization's registration is effective for one year after the day on which the division issues the credit services organization's registration.

(7) A credit services organization obtaining a registration in accordance with this section does not constitute an approval or endorsement of the credit services organization by the division or the state.

§ 13-21-104 Surety bond or certificate of deposit -- Not required of agent if obtained by organization.

(1) If a credit services organization obtains a surety bond or certificate of deposit as described in Subsection 13-21-102(1), a salesperson, agent, or representative who sells the services of that organization is not required to post a separate surety bond or certificate of deposit.

(2) For purposes of this section, a person is a salesperson, agent, or representative of a credit services organization if:

(a) the person does business under the same name as the credit services organization; or

(b) the credit services organization and the issuer of the surety bond or certificate of deposit certify in writing that the surety bond or certificate of deposit covers the person.

§ 13-21-105 Written information statement required.

(1) Before the execution of a contract or agreement between the buyer and a credit services organization or before the receipt by the credit services organization of any money or other valuable consideration, whichever occurs first, the credit services organization shall provide the buyer with a statement in writing, containing all the information required by Section 13-21-106.

(2) A credit services organization shall maintain on file for a period of two years an exact copy of the statement described in Subsection (1), personally signed by the buyer, acknowledging receipt of a copy of the statement.

§ 13-21-106 Contents of statement.

The information statement required under Section 13-21-105 shall include all of the following:

(1) a complete and accurate statement of the buyer's right to review any file on the buyer a credit reporting agency maintains, as provided under 15 U.S.C. Sec. 1681 et seq., as amended, the Fair Credit Reporting Act;

(2) a statement that the credit reporting agency that issued a report upon which a credit denial was based shall conduct a review of the file on the buyer free of charge, if requested within 30 days after the day on which the buyer receives a notice of a denial of credit;

(3) the approximate price a credit reporting agency will charge the buyer for a copy of the file on the buyer;

(4) a complete and accurate statement of the buyer's right to dispute the completeness or accuracy of any item contained in any file on the buyer that a credit reporting agency maintains;

(5) a complete and detailed description of the services the credit services organization will perform for the buyer and the total amount the buyer will have to pay, or become obligated to pay, for the services;

(6) a statement asserting the buyer's right to proceed against the surety bond or trust account required under Section 13-21-102; and

(7) the name and address of the surety company which issued the surety bond, or the name and address of the depository and the trustee and the account number of the trust account.

§ 13-21-107 Written contracts required -- Contents -- Notice of cancellation of contract.

(1) A contract between the buyer and a credit services organization for the purchase of the services of the credit services organization shall be in writing, dated, signed by the buyer, and include all of the following:

(a) a conspicuous statement in bold type, in immediate proximity to the space reserved for the signature of the buyer, as follows: "You, the buyer, may cancel this contract at any time prior to midnight of the fifth day after the date of the transaction. See the attached notice of cancellation form for an explanation of this right.";

(b) the terms and conditions of payment, including the total of all payments to be made by the buyer, whether to the credit services organization or to some other person;

(c) a full and detailed description of the services the credit services organization will perform for the buyer, including all guarantees and all promises of full or partial refunds, and the estimated date by which the credit services organization will perform the services, or estimated length of time for performing the services; and

(d) the credit services organization's principal business address and the name and address of its agent, in Utah, authorized to receive service of process.

(2) The contract shall be accompanied by a completed form in duplicate, captioned "Notice of Cancellation," which shall be attached to the contract and easily detachable, and which shall contain in bold type the following statement written in the same language as used in the contract:

"Notice of Cancellation

You may cancel this contract, without any penalty or obligation, within five days from the date the contract is signed.

If you cancel, any payment made by you under this contract will be returned within 10 days following receipt by the seller of your cancellation notice.

To cancel this contract, mail or deliver a signed dated copy of this cancellation notice, or any other written notice, to _____(name of credit services organization)at (address of credit services organization) (place of business) not later than midnight (date).

I hereby cancel this transaction.

_______________(date)

(purchaser's signature)"

(3) The credit services organization shall give to the buyer:

(a) a copy of the completed contract; and

(b) all other documents the credit services organization requires the buyer to sign at the time the buyer signs the documents.

§ 13-21-108 Required disclosures.

When a credit services organization provides a credit report to a buyer, the credit services organization shall provide to the buyer a written disclosure that identifies:

(1) the credit reporting agency providing the information in the report;

(2) the name of the credit score model the credit reporting agency uses to calculate the credit score; and

(3) the minimum and maximum possible scores under the credit score model the credit reporting agency uses in the credit report.

§ 13-21-109 Burden of proving exception -- Penalties -- Court's criminal and equitable jurisdiction -- Prosecution.

(1) A waiver by a buyer of a part of this chapter is void.

(2) In a proceeding under this chapter, the person claiming the exemption or exception has the burden of proving an exemption or an exception from a definition.

(3)

(a) A person who violates this chapter is guilty of a class A misdemeanor.

(b) A court with jurisdiction under Title 78A, Judiciary and Judicial Administration, may restrain and enjoin a violation of this chapter.

(4) The attorney general, a county attorney, a district attorney, or a city attorney may prosecute misdemeanor actions or institute injunctive or civil proceedings, or both, under this chapter.

(5) The remedies, duties, prohibitions, and penalties of this chapter are not exclusive and are in addition to all other causes of action, remedies, and penalties provided by law.

(6) In addition to the division's enforcement powers described in Chapter 2, Division of Consumer Protection, the division may:

(a) impose an administrative fine of up to $2,500 for each violation of this chapter; and

(b) bring an action in a court with jurisdiction to enforce a provision of this chapter.

(7) In an action described in Subsection (6)(b), a court may:

(a) declare that an act or a practice violates a provision of this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured purchaser or consumer;

(e) impose a fine of up to $2,500 for each violation of this chapter; and

(f) award any other relief the court deems reasonable and necessary.

§ 13-21-110 Damages -- Punitive damages -- Attorney fees and costs -- Remedies.

(1) A buyer injured by a violation of this chapter may bring any action for recovery of damages.

(2) In an action brought by a buyer in accordance with Subsection (1):

(a) a court shall enter judgment for actual damages, that the court shall determine as at least the amount paid by the buyer to the credit services organization, plus reasonable attorney fees and costs; and

(b) the court may award the buyer punitive damages.

(3) The remedies provided under this chapter are in addition to any other procedures or remedies for a violation or conduct provided for in any other law.

(4)

(a) The division may maintain an action for damages or injunctive relief on behalf of the division or another person to enforce compliance with this chapter.

(b) A court shall include in a judgment the court grants in favor of the division, in addition to any other monetary award or injunctive relief, an award of reasonable attorney fees, court costs, and costs of investigation.

Chapter 22 Charitable Solicitations Act

§ 13-22-18 Local ordinance.

This chapter does not prohibit any political subdivision of the state from enacting any ordinance regulating the solicitation of contributions within the subdivision's boundaries so long as the ordinance only coordinates enforcement of this chapter with the division.

Part 1 General Provisions

§ 13-22-101 Definitions.

As used in this chapter:

(1) "Chapter" means a chapter, branch, area, office, or similar affiliate of a charitable organization.

(2)

(a) "Charitable organization" means any person, joint venture, partnership, limited liability company, corporation, association, group, or other entity that:

(i) is or claims to be established for any charitable purpose;

(ii) solicits or obtains contributions solicited from the public for a charitable purpose; or

(iii) employs a charitable appeal as the basis of a charitable solicitation or employs an appeal that reasonably suggests or implies that there is a charitable purpose to a charitable solicitation.

(b) "Charitable organization" includes a chapter or a person who solicits contributions within the state for a charitable organization.

(3) "Charitable purpose" means:

(a) any benevolent, educational, philanthropic, humane, patriotic, religious, eleemosynary, social welfare or advocacy, public health, environmental, conservation, civic, or other charitable objective; or

(b) for the benefit of a public safety, law enforcement, or firefighter fraternal association.

(4) "Charitable sales promotion" means an advertising or sales campaign, conducted by a commercial co-venturer, that represents that the purchase or use of goods or services that the commercial co-venturer offers will benefit, in whole or in part, a charitable organization or purpose.

(5)

(a) "Charitable solicitation" means a person's request, directly or indirectly, for money, credit, property, financial assistance, or another thing of value based on the plea or representation that the person will use the money, credit, property, financial assistance, or any other thing of value for a charitable purpose.

(b) "Charitable solicitation" includes:

(i) any of the following done, or purporting to be done, for a charitable purpose:

(A) an oral or a written request, including a request by telephone, radio, television, or other advertising or communications media;

(B) the distribution, circulation, or posting of a handbill, written advertisement, or publication; or

(ii) the sale of, offer or attempt to sell, or request of donations in exchange for any advertisement, membership, subscription, or other article in connection with which a person makes an appeal for a charitable purpose;

(iii) a person's use of the name of a charitable organization or movement as an inducement or reason for making a purchase or donation; or

(iv) in connection with a sale or donation, a person stating or implying that the person will give or donate all or a part of the proceeds of a sale or donation to a charitable purpose.

(6) "Commercial co-venturer" means a person that for profit regularly and primarily engages in trade or commerce other than in connection with soliciting for a charitable organization or purpose.

(7)

(a) "Contribution" means the pledge or grant for a charitable purpose of any money or property of any kind, including any of the following:

(i) a gift, subscription, loan, advance, or deposit of money or anything of value;

(ii) a contract, promise, or agreement, express or implied, whether or not legally enforceable, to make a contribution for charitable purposes; or

(iii) fees, dues, or assessments paid by members, when membership is conferred solely as consideration for making a contribution.

(b) "Contribution" does not include:

(i) money a financial institution loans to a charitable organization in the ordinary course of business; or

(ii) fees, dues, or assessments members pay when membership is not conferred solely as consideration for making a contribution.

(8) "Contributor" means a donor, pledgor, purchaser, or other person that makes a contribution.

(9) "Director" means the director of the division.

(10) "Division" means the Division of Consumer Protection established by Section 13-2-101.

(11)

(a) "Exempt function" means the function of influencing or attempting to influence the selection, nomination, election, or appointment of an individual to a federal, state, or local public office or an office in a political organization, or the election of presidential or vice-presidential electors, regardless of whether the individual or the electors are selected, nominated, elected, or appointed.

(b) "Exempt function" includes making an expenditure relating to an office described in Subsection (11)(a) which, if incurred by the individual, would be allowable as a deduction under section 162(a) of 26 I.R.C. Sec. 1.162-20.

(12) "Foreign nonprofit corporation" means the same as that term is defined in Section 16-6a-102.

(13) "Material fact" means information that an individual of ordinary intelligence and prudence would consider relevant in deciding whether to make a contribution in response to a charitable solicitation.

(14) "Nonprofit corporation" means the same as that term is defined in Section 16-6a-102.

(15) "Political organization" means an incorporated or unincorporated party, committee, association, fund, or other organization organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures for an exempt function.

(16)

(a) "Professional fundraiser" means a person that:

(i) for compensation or other consideration, for or on behalf of a charitable organization that is a nonprofit corporation, or other person that is not a political organization:

(A) solicits a contribution; or

(B) promotes or sponsors the charitable solicitation of a contribution;

(ii)

(A) for compensation or other consideration, plans, manages, consults, or prepares material for, or with respect to, the charitable solicitation of contributions for a charitable organization that is a nonprofit corporation, or other person that is not a political organization; and

(B) at any time has custody of a contribution for the charitable organization;

(iii) engages in, or represents being independently engaged in, the business of soliciting contributions for a charitable organization that is a nonprofit corporation;

(iv) manages, supervises, or trains any solicitor whether as an employee or otherwise; or

(v) uses a vending device or vending device decal for financial or other consideration that implies a charitable solicitation of contributions or donations for a charitable organization or charitable purposes.

(b) "Professional fundraiser" does not include:

(i) an individual acting in the individual's capacity as a bona fide officer, director, volunteer, or full-time employee of a charitable organization;

(ii) an attorney, investment counselor, or banker who, in the conduct of that individual's profession, advises a client regarding legal, investment, or financial advice;

(iii) an individual who tangentially prepares materials, including an individual who:

(A) makes copies;

(B) cuts or folds flyers; or

(iv) a political organization.

(17)

(a) "Professional fundraising consultant" means an individual who:

(i) for compensation or other consideration, plans, manages, consults, or prepares material for, or with respect to, the charitable solicitation of contributions for a charitable organization that is a nonprofit corporation or any other person that is not a political organization;

(ii) does not solicit contributions;

(iii) does not at any time have custody of a contribution from a charitable solicitation; and

(iv) does not employ, procure, or engage any compensated person to solicit or receive contributions.

(b) "Professional fundraising counsel or consultant" does not include:

(i) an individual acting in the individual's capacity as a bona fide officer, director, volunteer, or full-time employee of a charitable organization;

(ii) an attorney, investment counselor, or banker who, in the conduct of that person's profession, advises a client regarding legal, investment, or financial advice; or

(iii) an individual who tangentially prepares materials, including an individual who:

(A) makes copies;

(B) cuts or folds flyers; or

(18) "Public grant" means the same as the term "grant" is defined in Section 63G-6a-103.

(19)

(a) "Vending device" means a container used by a charitable organization or professional fundraiser, for the purpose of collecting a charitable solicitation, contribution, or donation whether or not the device offers a product or item in return for the contribution or donation.

(b) "Vending device" includes machines, boxes, jars, wishing wells, barrels, or any other container.

(20) "Vending device decal" means a decal, tag, or similar designation material that is attached to a vending device, regardless of whether a charitable organization or professional fundraiser uses or places the decal, tag, or similar designation material, that would indicate that all or a portion of the proceeds from the purchase of items from the vending device will go to a specific charitable organization.

§ 13-22-102 Investigative and enforcement powers -- Education.

(1) The division shall administer and enforce the provisions of this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2)

(a) The division may audit or investigate as necessary to determine whether a person is violating, has violated, or is about to violate a provision of this chapter or a rule made or order issued under this chapter.

(b) As part of an investigation the division conducts in accordance with this Subsection (2), the division may:

(i) require a person to file a statement in writing;

(ii) administer oaths, subpoena witnesses and compel a witness to attend, compel sworn responses to written questions, take evidence, and examine under oath a person in connection with an investigation; and

(iii) require the production of books, papers, documents, merchandise, or other material relevant to the investigation.

(3) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(a) the director may impose an administrative fine of up to $2,500 for each violation of this chapter; or

(b) the division may bring an action in a court with jurisdiction to enjoin the act or practice constituting the violation or to enforce compliance with this chapter or a rule made or order issued under this chapter.

(4) Upon a proper showing, the court hearing an action brought under Subsection (3)(b) may:

(a) issue an injunction;

(b) declare that an act or practice violates a provision of this chapter;

(d) order disgorgement of any money received in violation of this chapter;

(e) order payment of money described in Subsection (4)(d) to an injured consumer;

(f) order rescission of an agreement that violates this chapter;

(g) impose a fine of up to $2,500 for each violation of this chapter; and

(h) award any other relief the court determines reasonable and necessary.

(5) If a court with jurisdiction grants judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(6) In assessing the amount of a fine or penalty under Subsection (3)(a), or (4)(g) the director or court imposing the fine or penalty may consider the gravity of the violation.

(7)

(a) A person that violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of up to $5,000 for each violation.

(b) A court may impose a civil penalty authorized under this section in a civil action brought by the division.

(8)

(a) The division may provide or contract to provide public education and voluntary education for applicants and registrants under this chapter.

(b) The public education that the division provides or contracts to provide under this Subsection (8) may:

(i) be in the form of publications, advertisements, seminars, courses, or other appropriate means; and

(ii) include:

(A) the requirements, prohibitions, and regulated practices under this chapter;

(B) suggestions for effective financial and organizational practices for charitable organizations;

(D) potential problems with charitable solicitations and fraudulent or deceptive practices; and

(E) any other matter relevant to the subject of this chapter.

(9) Nothing in this chapter limits other available rights or remedies authorized under the laws of this state or the United States.

§ 13-22-103 Action for damages.

Nothing in this chapter precludes a person damaged as a result of a charitable solicitation from maintaining a civil action for damages or injunctive relief.

§ 13-22-104 Registration required.

(1) Unless a person acting as a professional fundraiser registers with the division in accordance with Section 13-22-105, the person may not:

(a) make or facilitate a charitable solicitation either directed toward the state or originating from the state; or

(b) maintain a place of business in the state or employ an individual located in the state.

(2) Unless a person acting as a professional fundraising consultant registers with the division in accordance with Section 13-22-105, the person may not:

(a) maintain a place of business in the state or employ an individual located in the state; or

(b) provide any service of a professional fundraising consultant to or for a charitable organization, or any other person, over which the state has general jurisdiction.

(3) Registration as a professional fundraiser or professional fundraising consultant does not mean the division or the state approves or endorses the professional fundraiser or professional fundraising consultant.

§ 13-22-105 Professional fundraiser's or fundraising consultant's registration.

(1) A person applying for or renewing a registration as a professional fundraiser or a professional fundraising consultant shall:

(a) pay an application fee the division determines under Section 63J-1-504; and

(b) submit a written application in a form the division approves that includes:

(i) the applicant's name, address, and telephone number;

(ii) the name and address of each organization or person controlled by, controlling, or affiliated with the applicant;

(iii) the applicant's business, occupation, or employment for the three-year period immediately preceding the date of the application;

(iv) whether the applicant is an individual, joint venture, partnership, limited liability company, corporation, association, or other entity;

(v) the names and mailing addresses of the applicant's officers and directors;

(vi) the applicant's registered agent for service of process in this state, and the registered agent's:

(A) name;

(B) street address;

(D) telephone number;

(vii) if the person is a professional fundraiser or applies for registration as a professional fundraiser:

(A) the purpose of the charitable solicitation and use of the contributions the person will solicit;

(B) the method by which the person will conduct the charitable solicitation and the projected length of time the person will conduct the charitable solicitation;

(C) a statement identifying how the person will be paid, and if the person charges a flat fee, the amount of the flat fee;

(D) a statement of what percentage of the contributions the person collects as a result of the charitable solicitation are projected to remain available to the charitable organization declared in the application; and

(E) a statement of total contributions collected or received by the person within the calendar year immediately preceding the day on which the person submits the person's application, including a description of the expenditures made from or the use made of the contributions;

(viii) if the person is a professional fundraising consultant or applies to become a professional fundraising consultant:

(A) the purpose of the plan, management, advice, or preparation of materials for, or with respect to, the charitable solicitation and use of the contributions solicited;

(B) the method by which the person will organize or coordinate the plan, management, advice, or preparation of materials for, or with respect to, the charitable solicitation and the projected length of time of the charitable solicitation;

(C) a statement of the percentage of the contributions the person collects as a result of the plan, management, advice, or preparation of materials for, or with respect to, the charitable solicitation are projected after deducting the total fees the person will earn or receive remain available to the charitable organization declared in the application; and

(D) a statement of total net fees the person earns or receives within the calendar year immediately preceding the day on which the person submits the applicant's application, including a description of the expenditures the person makes from or uses of the net fees the person earns or receives in the planning, management, advising, or preparation of materials for, or with respect to, the charitable solicitation and use of the contributions solicited for the charitable organization;

(ix) disclosure of:

(A) any injunction, judgment, or administrative order against the applicant; and

(B) any felony or misdemeanor conviction of the person that involves theft, fraud, or dishonesty for the ten-year period before the day on which the applicant files the application;

(x) each written agreement the applicant has with a charitable organization;

(xi) disclosure of an injunction, a judgment, or an administrative order or conviction of a crime involving a charitable solicitation or a felony involving fraud, dishonesty, a false statement, forgery, or theft with respect to an officer, a director, a manager, an operator, or a principal of the applicant;

(xii) an acknowledgment that fundraising in the state will not commence until both the professional fundraiser or professional fundraising consultant are registered and in compliance with this chapter; and

(xiii) additional information the division may require by rule.

(2) If information contained in the application for registration becomes incorrect or incomplete, the applicant or registrant shall, within 30 days after the information becomes incorrect or incomplete, correct the application or file the complete information required by the division.

(3) In addition to the registration fee, an applicant failing to file an application for registration or renewal by the due date or filing an incomplete application for registration or renewal shall pay an additional fee of $25 for each month or part of a month after the date on which the application for registration or renewal was due to be filed.

§ 13-22-106 Expiration of registration.

(1) A professional fundraiser's or professional fundraising consultant's registration issued under this chapter expires one year after the day on which the division issues the registration.

(2) A professional fundraiser or a professional fundraising consultant:

(a) may renew a registration only by complying with the requirements for obtaining the original registration; and

(b) shall submit an application to renew a registration at least 30 days before the day on which the professional fundraiser's or the professional fundraising consultant's registration expires.

§ 13-22-107 Grounds for denial, suspension, or revocation.

(1) the division finds that the denial, suspension, or revocation is in the public interest; and

(2)

(a) the application or registration is incomplete or misleading in a material respect;

(b) the applicant or the applicant's principal:

(i) violates this chapter, causes a violation of this chapter, allows a violation of this chapter, or fails to satisfy the requirements of a provision of:

(A) this chapter; or

(B) a rule the division makes in accordance with this chapter;

(ii) violates Chapter 11, Utah Consumer Sales Practices Act;

(iii) is enjoined by a court, or is subject to an administrative or judicial order, if the administrative or judicial order:

(A) includes a finding or admission of the applicant's fraud, breach of fiduciary duty, or material misrepresentation; or

(B) is based on a finding of the applicant's lack of integrity, truthfulness, or mental competence;

(iv) is convicted of a crime involving fraud, dishonesty, a false statement, forgery, or theft;

(v) obtains or attempts to obtain a registration by misrepresentation;

(vi) fails to provide information the division requests;

(vii) fails to pay an administrative fine that the division or an administrative order imposes; or

(viii) fails to pay the fee to file a registration application or a renewal application.

§ 13-22-108 Prohibited practices.

In connection with a charitable solicitation, each of the following acts and practices is prohibited:

(1) stating or implying that registration constitutes endorsement or approval by the division or a governmental entity;

(2) violating a requirement of this chapter or a rule made under this chapter;

(3) making a false statement of a material fact or failing to state a material fact necessary to make statements made, in the context of the circumstances under which they are made, not misleading, whether in connection with a charitable solicitation or a filing with the division; and

(4) violating an order issued by the division under Section 13-22-102.

§ 13-22-109 Accuracy not guaranteed.

(1)

(a) By issuing a registration, the state does not guarantee the accuracy of any representation contained in the registration, nor does the state warrant that a statement made by the holder of the registration is truthful.

(b) The state makes no certification as to the charitable worthiness of a charitable organization on whose behalf a charitable solicitation is made nor as to the moral character of the holder of the registration.

(2) The following statement shall appear on each registration: "THE STATE OF UTAH MAKES NO CERTIFICATION AS TO THE CHARITABLE WORTHINESS OF ANY ORGANIZATION ON WHOSE BEHALF A SOLICITATION IS MADE NOR AS TO THE MORAL CHARACTER OF THE HOLDER OF THE REGISTRATION."

§ 13-22-110 Financial reports required -- Rulemaking.

(1)

(a) Subject to Subsection (2), a charitable organization that is a nonprofit corporation, or that is a foreign nonprofit corporation, shall annually file with the Division of Corporations and Commercial Code an unredacted copy of the charitable organization's most recently filed IRS Form 990, 990-EZ, 990-N, or 990-PF.

(b) Subsection (1)(a) does not apply to a nonprofit corporation or a foreign nonprofit corporation that is not required to file a Form 990, 990-EZ, 990-N, or 990-PF with the IRS.

(c) An IRS Form 990, 990-EZ, or 990-PF for a tax year from more than three years before the day on which the charitable organization makes the filing with the Division of Corporations and Commercial Code does not satisfy the requirement of Subsection (1)(a).

(2)

(a)

(i) The division may not require a charitable organization to file Schedule B of a form described in Subsection (1).

(ii) An IRS Form 990-T is not required to be filed under this section.

(b) A charitable organization that has not yet filed an IRS Form 990, 990-EZ, 990-N, or 990-PF may file a tax exempt determination letter that the charitable organization receives from the IRS if the tax exempt determination letter is dated no more than two years before the day on which the charitable organization files the tax exempt determination letter with the Division of Corporations and Commercial Code.

(c) If a charitable organization files a tax exempt determination letter in accordance with Subsection (2)(b), that filing satisfies the filing requirement described in Subsection (1).

(d) The division shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish:

(i) the manner in which a charitable organization shall file the forms described in Subsection (1); and

(ii) the process by which a charitable organization shall file the forms described in Subsection (1).

§ 13-22-111 Separate accounts and receipts required.

(1)

(a) A professional fundraiser shall segregate and maintain all contributed funds in an account held separately from the professional fundraiser's operating account.

(b) A professional fundraiser shall deposit each contribution in the control or custody of the professional fundraiser into an account at a bank or other federally insured financial institution that is in the name of the charitable organization no later than 10 days after the day on which the professional fundraiser receives the contribution.

(i) maintain and administer the account described in Subsection (1)(b); and

(ii) have sole control of all withdrawals.

(2) A professional fundraiser shall:

(a) maintain a record of each contribution of money, securities, or cash equivalent sufficient to allow the charitable organization or professional fundraiser to provide a receipt to the contributor upon request or as required by law; and

(b) provide a contributor a receipt for each contribution upon request or as required by law.

(3) A professional fundraiser shall develop and maintain adequate internal controls for receipt, management, and disbursement of money that are reasonable in light of the charitable organization's or professional fundraiser's assets and organizational complexity.

§ 13-22-112 Written agreement required.

(1) A professional fundraiser or professional fundraising consultant may only engage in activities on behalf of a charitable organization through written agreement with the charitable organization.

(2) A charitable organization may only engage the services of a professional fundraiser or professional fundraising consultant through written agreement.

(3) A professional fundraiser or professional fundraising consultant shall file each agreement described in this section with the professional fundraiser's or professional fundraising consultant's application for registration.

§ 13-22-113 Reciprocal agreements.

(1) The division may convey or exchange information obtained under this chapter with another agency that has regulatory authority over charitable organizations.

(2) The division may accept information that a charitable organization, professional fundraiser, or fundraising consultant files in another state or with a federal agency or other organization in place of substantially similar information that is required to be filed under this chapter.

§ 13-22-114 Charitable sales promotions.

A commercial co-venturer shall disclose in each advertisement for a charitable sales promotion the dollar amount or percent per unit of goods or services purchased or used that will benefit the charitable organization or purpose.

§ 13-22-115 Fiduciary capacity.

A person soliciting, collecting, or expending a contribution for charitable purposes, and every officer, director, trustee, or employee of a person concerned with the charitable solicitation, collection, or expenditure of the contribution for charitable purposes, is a fiduciary and acts in a fiduciary capacity.

§ 13-22-116 Fundraising campaign recordkeeping requirements.

(1) As used in this section, "fundraising campaign" means a charitable solicitation activity that a professional fundraiser engages in on behalf of a charitable organization where the professional fundraiser receives a portion of the funds raised or other compensation in exchange for services.

(2) A professional fundraiser shall keep records of the following information:

(a) actual expenses and revenue for the fundraising campaign;

(b) bank account information for the bank account where the professional fundraiser holds contributions collected in connection with the fundraising campaign;

(d) an affirmation from the professional fundraiser that the charity approves the charitable solicitation materials to be used in the fund raising campaign;

(e) the name and contact information for each individual overseeing the fund raising campaign;

(f) contributions the professional fundraiser collects during the fundraising campaign;

(g) contributions paid to the charitable organization as a result of the fundraising campaign; and

(h) expenses the charitable organization pays to the professional fundraiser for the fundraising campaign.

(3) A professional fundraiser shall keep the records described in Subsection (2) for five years after the day on which the fundraising campaign ends.

Chapter 23 Fitness Center Services Protection Act

Part 1 General Provisions

§ 13-23-101 Definitions.

As used in this chapter:

(1) "Business enterprise" means a sole proprietorship, partnership, association, joint venture, corporation, limited liability company, or other entity used in carrying on a business.

(2) "Consumer" means a purchaser of fitness center services for consideration.

(3) "Division" means the Division of Consumer Protection established under Section 13-2-102.

(4)

(a) "Fitness center" means a business enterprise that provides access to a facility:

(i) for a charge or a fee; and

(ii) for the development or preservation of physical fitness or well-being, through exercise, weight control, or athletics.

(b) "Fitness center" does not include:

(i) a licensed physician who operates a facility at which the physician engages in the practice of medicine;

(ii) a hospital, intermediate care facility, or skilled nursing care facility;

(iii) a public or private school, college, or university;

(iv) the state or a political subdivision of the state;

(v) the United States or a political subdivision of the United States;

(vi) a person offering instruction if the person does not:

(A) utilize an employee or independent contractor; or

(B) grant a consumer the use of a facility containing exercise equipment;

(vii) a business enterprise, the primary operation of which is to teach self-defense or a martial art, including kickboxing, judo, or karate;

(viii) a business enterprise, the primary operation of which is to teach or allow an individual to develop a specific skill rather than develop or preserve physical fitness, including gymnastics, tennis, rock climbing, or a winter sport;

(ix) a business enterprise, the primary operation of which is to teach or allow an individual to practice yoga or Pilates;

(x) a private employer who owns and operates a facility exclusively for the benefit of the employer's employees, retirees, or family members, if the operation of the facility:

(A) is only incidental to the overall function and purpose of the employer's business; and

(B) is offered on a nonprofit basis;

(xi) an individual providing professional services within the scope of the individual's license with the Division of Professional Licensing;

(xii) a country club;

(xiii) a nonprofit religious, ethnic, or community organization;

(xiv) a residential weight reduction center;

(xv) a business enterprise that only offers virtual services;

(xvi) a business enterprise that only offers a credit for a service that a separate business enterprise offers;

(xvii) the owner of a lodging establishment, as defined in Section 29-2-102, if the owner only provides access to the lodging establishment's facility to:

(A) a guest, as defined in Section 29-2-102; or

(B) an operator or employee of the lodging establishment;

(xviii) an association, declarant, owner, lessor, or developer of a residential housing complex, planned community, or development, if at least 80% of the individuals accessing the facility reside in the housing complex, planned community, or development; or

(xix) a person offering a personal training service exclusively as an employee or independent contractor of a fitness center.

(5) "Fitness center facility" means a facility to which a business entity provides access:

(a) for a charge or a fee; and

(b) for the development or preservation of physical fitness or well-being, through exercise or athletics.

(6)

(a) "Fitness center service" means instruction, a service, a privilege, or a right that a fitness center offers for sale.

(b) "Fitness center service" includes a personal training service.

(7) "Personal training service" means the personalized instruction, training, supervision, or monitoring of an individual's physical fitness or well-being, through exercise or athletics.

(8) "Primary location" means the fitness center facility that a fitness center designates in a contract for fitness center services as the fitness center facility the consumer in the contract will primarily use for fitness center services.

§ 13-23-102 Contracts for fitness center services.

(1)

(a) A contract for the purchase of a fitness center service shall be in writing.

(b) The written contract described in Subsection (1)(a) shall constitute the entire agreement between the consumer and the fitness center.

(2)

(a) The fitness center shall provide the consumer with a fully completed copy of the contract required by Subsection (1):

(i) at the time of the contract's execution; and

(ii) at any time, upon the consumer's request.

(b) The copy described in Subsection (2)(a) shall show:

(i) the date of the transaction;

(ii) the name and address of the fitness center;

(iii) the name, address, and telephone number of the consumer; and

(iv) the consumer's primary location.

(3)

(a) A contract described in Subsection (1):

(i) may not have a term in excess of 36 months; and

(ii) subject to Subsection (3)(b), may include an automatic renewal provision.

(b) An automatic renewal provision described in Subsection (3)(a) is effective if notice of the automatic renewal provision is provided to the consumer no sooner than 60 days before, and no later than 30 days before, the day on which the contract automatically renews.

(4) A contract described in Subsection (1) or an attachment to the contract shall clearly state each rule of the fitness center that applies to:

(a) the consumer's use of the fitness center's facilities and services; and

(b) cancellation and refund policies of the fitness center.

(5) A contract described in Subsection (1) shall specify which equipment or facility of the fitness center:

(a) is omitted from the contract's coverage; or

(b) may be changed at the fitness center's discretion.

(6) A contract described in Subsection (1) shall clearly:

(a) state the consumer's rescission rights under Section 13-23-103; and

(b) provide an email address and a mailing address where the consumer can send the fitness center a notice of intent to rescind the contract.

(7)

(a) If a consumer and a fitness center enter into a contract described in Subsection (1) before May 4, 2022, the fitness center may:

(ii) change the consumer's primary location to a fitness center facility within five driving miles from the consumer's initial primary location.

(b) If a consumer and a fitness center enter into a contract described in Subsection (1) on or after May 4, 2022, the fitness center may not:

(i) assign the contract to another fitness center that requires the consumer to obtain a contracted fitness center service at a fitness center facility within five driving miles from the consumer's initial primary location, unless the fitness center that enters into the contract includes in the contract a disclaimer that:

(A) is in at least 12-point, bold font on the first page of the contract; and

(B) states that the fitness center may assign the contract to another fitness center requiring the consumer to obtain a contracted fitness center service at another facility within five driving miles from the consumer's initial primary location; or

(ii) change the consumer's primary location to a fitness center facility within five driving miles from the consumer's initial primary location, unless the fitness center includes in the contract a disclaimer that:

(A) is in at least 12-point, bold font on the first page of the contract; and

(B) states that the fitness center may change the consumer's primary location to a fitness center facility within five driving miles from the consumer's initial primary location.

(8)

(a) Except as permitted under Subsection (8)(b), a fitness center may not assign a contract for a fitness center service to a fitness center that requires the consumer to obtain a contracted fitness center service at a fitness center facility farther than five driving miles from the consumer's initial primary location, unless the fitness center:

(i) provides the consumer the option to cancel the contract; and

(ii) receives approval from the consumer to assign the contract.

(b) A fitness center may assign a consumer's contract for a fitness center service without complying with Subsection (8)(a), if:

(i) during the 60-day period immediately before the day on which the fitness center assigns the consumer's contract, the consumer uses a fitness center facility operated by the assignee more frequently than the consumer's primary location;

(ii) the assignee changes the consumer's primary location to the fitness center facility described in Subsection (8)(b)(i); and

(iii) the fitness center has a reciprocity agreement with the assignee.

(9)

(a) Except as permitted under Subsection (9)(b), before a fitness center changes a consumer's primary location to a fitness center facility farther than five driving miles from the consumer's initial primary location, the fitness center shall provide the consumer the option to:

(i) cancel the contract for a fitness center service; or

(ii)

(A) continue the contract at the new fitness center facility; and

(B) designate the new fitness center facility as the consumer's primary location.

(b) A fitness center may change a consumer's primary location without providing the consumer the option described in Subsection (9)(a), if:

(i) during the 60-day period immediately before the day on which the fitness center changes the consumer's primary location, the consumer uses a fitness center facility other than the consumer's primary location more frequently than the consumer's primary location; and

(ii) the fitness center changes the consumer's primary location to the fitness center facility described in Subsection (9)(b)(i).

(10) The provisions of this section apply regardless of when the execution of a contract described in Subsection (1)(a) occurs.

§ 13-23-103 Rescission.

(1) A consumer may rescind a contract for the purchase of a fitness center service by emailing or mailing written notice of the consumer's intent to rescind:

(a) to the email address or mailing address the fitness center provides in the contract, in accordance with Subsection 13-23-102(6)(b); and

(b)

(i) before midnight of the third business day after the day on which the consumer and fitness center execute the contract, as recorded by timestamp or postmark; or

(ii) if a consumer and fitness center execute the contract when the consumer's primary location is not fully operational and available for use, before midnight of the third business day after the day on which the consumer's primary location becomes fully operational and available for use, as recorded by timestamp or postmark.

(2) A consumer who rescinds a contract under this section is entitled to a refund of every payment the consumer made, less the reasonable value of any fitness center service the consumer actually received.

(3) The preparation and processing of the contract or other document is not a fitness center service that the fitness center may deduct under Subsection (2) from any refundable amount.

(4) In an enforcement action that the division initiates, a fitness center has the burden of proving that any value the fitness center retains under Subsection (2) is reasonable.

(5) The rescission of a contract under this section is effective upon the fitness center's receipt of written notice of the consumer's intent to rescind the contract.

§ 13-23-104 Registration -- Bond or certificate of deposit required -- Penalties.

(1) A fitness center may not operate a fitness center facility in this state unless the fitness center registers the fitness center facility with the division in accordance with this section.

(2) To register or renew a registration for a fitness center facility, a person shall submit to the division a registration application:

(a) in a manner the division determines; and

(b) that includes:

(i) a registration fee in an amount the division determines in accordance with Section 63J-1-504;

(ii) a designated registered agent for service of process in the state and the registered agent's:

(A) name;

(B) street address;

(D) telephone number;

(iii) a copy of the fitness center's liability policy of insurance that:

(A) covers the fitness center; and

(B) is in effect at the time of the registration or registration renewal; and

(iv) any other information that the division requires by rule that the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(3)

(a) A fitness center facility's registration is effective for one year after the day on which the division approves the fitness center's registration application.

(b) To renew a fitness center facility registration under this section, the fitness center shall submit a registration renewal application in accordance with Subsection (2) at least 30 days before the day on which the fitness center facility's registration expires.

(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division may establish:

(a) the initial fitness center facility registration process, including the content of any forms;

(b) the fitness center facility registration renewal process, including the content of any forms; and

(5) If a fitness center fails to submit a complete registration renewal application before the day on which a fitness center facility's registration expires, the fitness center shall pay a fee of $25 for each month or part of a month that passes:

(a) after the day on which the registration expires; and

(b) before the day on which the fitness center submits a complete registration renewal application.

(6) The fee described in Subsection (5) is in addition to the registration renewal fee described in Subsection (2)(b)(i).

(7)

(a) Except as provided in Section 13-23-105, for each fitness center facility a fitness center operates, the fitness center shall obtain and maintain:

(i) a surety bond issued by a surety authorized to transact surety business in this state; or

(ii) a certificate of deposit in a financial institution authorized under the laws of this state or the United States to accept deposits from the public.

(b) The fitness center shall make the bond or certificate of deposit described in Subsection (7)(a) payable to the division for the benefit of a consumer who incurs damages as the result of the fitness center:

(i) violating this chapter; or

(ii) going out of business.

(c) After each consumer recovers actual damages, the division may recover from the surety bond or certificate of deposit described in Subsection (7)(a) any administrative fine, civil penalty, investigative cost, attorney fees, or other cost of collecting and distributing funds in accordance with this chapter.

(8)

(a) In accordance with the schedule established in Subsection (8)(b), a fitness center shall base the minimum principal amount of the bond or certificate of deposit required under Subsection (7) on:

(i) the number of unexpired contracts for a fitness center service, at the time the fitness center submits the fitness center facility registration or registration renewal application, that designate the fitness center facility as the consumer's primary location; or

(ii) if at the time the fitness center submits the fitness center facility registration application the fitness center has not executed a contract for a fitness center service that designates the fitness center facility as a consumer's primary location, the number of contracts for a fitness center service designating the fitness center facility as a consumer's primary location that the fitness center reasonably expects to execute during the fitness center facility's first year of registration.

(b)

| | Principal Amount of Surety Bond or Certificate of Deposit | Number of Contracts | | --- | --- | --- | | | $5,000 | 100 or fewer | | | $10,000 | 101 to 250 | | | $15,000 | 251 to 500 | | | 35,000 | 501 to 1,500 | | | 50,000 | 1,501 to 3,000 | | | 75,000 | 3,001 or more |

(c) A fitness center shall comply with Subsections (8)(a) and (b) with respect to all of the fitness center's unexpired contracts for a fitness center service that do not satisfy the criteria in Section 13-23-105.

(9) A fitness center shall furnish a copy of the current surety bond or certificate of deposit to the division before selling, offering or attempting to sell, soliciting the sale of, or becoming a party to any contract to provide a fitness center service.

(10) A fitness center shall:

(a) maintain accurate records of:

(i) the surety bond or certificate of deposit; and

(ii) of each payment made, due, or to become due to the issuer; and

(b) open the records described in Subsection (10)(a) to inspection by the division at any time during normal business hours.

(11)

(a) A fitness center with a fitness center facility registered under this section shall submit a new initial registration for the fitness center facility, if the fitness center:

(i) changes ownership;

(ii) permanently ceases and then again commences operation at the fitness center facility; or

(iii) relocates the fitness center facility.

(b) The former owner of a fitness center may not release, cancel, or terminate the owner's liability under any surety bond or certificate of deposit previously filed with the division, unless:

(i) the new owner files a new bond or certificate of deposit for the benefit of consumers covered under the previous owner's surety bond or certificate of deposit; or

(ii) the former owner refunds all unearned payments to consumers.

(12) If a fitness center permanently ceases operation or relocates a fitness center facility, the fitness center shall provide the division notice at least 45 days before the day on which fitness center permanently ceases operation or relocates the fitness center facility.

(13) A fitness center may not:

(a) represent that the division or the state endorses or approves the fitness center;

(b) omit from a filing with the division a material statement of fact required by this chapter or rule the division makes in accordance with this chapter; or

(c) include in a filing with the division a material statement of fact that the fitness center or the fitness center's principal knew or should have known to be false, deceptive, inaccurate, or misleading.

(14) A fitness center commits a separate violation of this chapter for each day that the fitness center operates a fitness center facility without registering the fitness center facility with the division in accordance with Subsection (2).

§ 13-23-105 Exemptions from surety bond or certificate of deposit requirement.

(1) A fitness center is exempt from Subsections 13-23-104(7) through (10) for a fitness center facility, if the fitness center only offers access to a fitness center service at the fitness center facility through:

(a) the purchase of an individual class or session;

(b) the purchase of a package:

(i) with a defined number of classes or sessions; and

(ii) for which the health spa may not hold more than $150 worth of a consumer's unused credit;

(c) the purchase of a monthly membership or pass, payment for which the fitness center does not collect from a consumer more than two months in advance;

(d) an installment contract that:

(i) provides for the consumer to make all payments due under the contract, including a down payment, an enrollment fee, a membership fee, or any other payment to the fitness center, in equal monthly installments spread over the entire term of the contract; and

(ii) contains the following clause: "If this fitness center ceases operations at or changes the consumer's primary location in violation of Utah Code Subsection 13-23-102(7), (8), or (9), no further payments under this contract shall be due to anyone, including any assignee of the contract or purchaser of any note associated with or contained in this contract."; or

(e) a combination of fitness center services described in Subsections (1)(a) through (d).

(2) For purposes of finding the principal amount for the surety bond or certificate of deposit required under Section 13-23-104, a fitness center is not required to include in the calculation described in Subsection 13-23-104(8) a contract that offers access to a fitness center service as described in Subsection (1).

(3) A fitness center that claims exemption from Subsections 13-23-104(7) through (10) or that a contract should be excluded from the calculation described in Subsection 13-23-104(8) bears the burden of proving to the division that the health spa or contract meets the relevant criteria described in Subsection (1) or (2).

§ 13-23-106 Enforcement -- Costs and attorney fees -- Penalties.

(1) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection, the division may:

(a) impose an administrative fine of up to $2,500 for a violation of this chapter; and

(b) bring an action in a court with jurisdiction to enforce a provision of this chapter.

(2) In an action described in Subsection (1)(b), the court may:

(a) declare that an act or practice violates a provision of this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured purchaser or consumer;

(e) impose a fine of up to $2,500 for a violation of this chapter; and

(f) award any other relief that the court deems reasonable and necessary.

(3)

(a) A person who willfully violates a provision of this chapter, either by failing to comply with any requirement or by doing any act prohibited in this chapter, is guilty of a class B misdemeanor.

(b) Each day a person commits or permits to continue a violation described in Subsection (3)(a) constitutes a separate punishable offense.

(d) In the case of a third or subsequent offense, the person is guilty of a third degree felony.

§ 13-23-107 Grounds for denial, suspension, or revocation.

In accordance with Title 63G, Chapter 4, Administrative Procedures Act, the director may initiate adjudicative proceedings to deny, suspend, or revoke an application or registration if:

(1) the division finds that the denial, suspension, or revocation is in the public interest;

(2)

(a) the application for registration or renewal is incomplete or misleading in a material respect; or

(b) the applicant or the applicant's principal:

(i) violates, causes a violation, allows a violation, or fails to satisfy the requirements of a provision of:

(A) this chapter; or

(B) a rule the division makes in accordance with this chapter;

(ii) violates Chapter 11, Utah Consumer Sales Practices Act;

(iii) is enjoined by a court, or is the subject of an administrative order issued in this or another state, if the injunction or order:

(A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or

(B) is based on a finding of lack of integrity, truthfulness, or mental competence of the applicant;

(iv) obtains or attempts to obtain a registration by misrepresenting a material fact;

(v) fails to provide information the division requests; or

(vi) fails to pay a fine imposed by the division or a court;

(vii) fails to pay the fee described in Subsection 13-23-104(2)(b)(i); or

(viii) is convicted of a crime involving theft, fraud, or dishonesty.

(3) the applicant's or registrant's surety bond or certificate of deposit ceases to be in effect;

(4) the applicant or registrant requested an exemption from maintaining a surety bond or certificate of deposit under Section 13-23-105, but does not meet the requirements for exemption;

(5) the applicant or registrant excluded from the principal amount calculation described in Subsection 13-23-104(8) for a surety bond or certificate of deposit, a contract that did not meet the requirements for exclusion described in Section 13-23-105; or

(6) the applicant or registrant ceases to provide fitness center services.

Chapter 24 Uniform Trade Secrets Act

§ 13-24-1 Short title.

This chapter is known as the "Uniform Trade Secrets Act."

§ 13-24-2 Definitions.

As used in this chapter, unless the context requires otherwise:

(1) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.

(2) "Misappropriation" means:

(a) acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

(b) disclosure or use of a trade secret of another without express or implied consent by a person who:

(i) used improper means to acquire knowledge of the trade secret; or

(ii) at the time of disclosure or use, knew or had reason to know that his knowledge of the trade secret was:

(A) derived from or through a person who had utilized improper means to acquire it;

(B) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or

(C) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

(iii) before a material change of his position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

(3) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

(4) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(a) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and

(b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

§ 13-24-3 Injunctive relief.

(1) Actual or threatened misappropriation may be enjoined. Upon application to the court, an injunction shall be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time in order to eliminate commercial advantage that otherwise would be derived from the misappropriation.

(2) In exceptional circumstances, an injunction may condition future use upon payment of a reasonable royalty for no longer than the period of time for which use could have been prohibited. Exceptional circumstances include, but are not limited to, a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation that renders a prohibitive injunction inequitable.

(3) In appropriate circumstances, affirmative acts to protect a trade secret may be compelled by court order.

§ 13-24-4 Damages.

(1) Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable, a complainant is entitled to recover damages for misappropriation. Damages can include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss. In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator's unauthorized disclosure or use of a trade secret.

(2) If willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under Subsection (1).

§ 13-24-5 Attorneys' fees.

If a claim of misappropriation is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith, or willful and malicious misappropriation exists, the court may award reasonable attorneys' fees to the prevailing party.

§ 13-24-6 Preservation of secrecy.

In an action under this chapter, a court shall preserve the secrecy of an alleged trade secret by reasonable means, which may include granting protective orders in connection with discovery proceedings, holding in-camera hearings, sealing the records of the action, and ordering any person involved in the litigation not to disclose an alleged trade secret without prior court approval.

§ 13-24-7 Statute of limitations.

An action for misappropriation shall be brought within three years after the misappropriation is discovered or, by the exercise of reasonable diligence, should have been discovered. For the purposes of this section, a continuing misappropriation constitutes a single claim.

§ 13-24-8 Effect on other law.

(1) Except as provided in Subsection (2), this chapter displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret.

(2) This chapter does not affect:

(a) contractual remedies, whether or not based upon misappropriation of a trade secret;

(b) other civil remedies that are not based upon misappropriation of a trade secret; or

§ 13-24-9 Uniformity of application and construction.

This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of the chapter among states enacting it.

Chapter 25a Telephone and Facsimile Solicitation Act

§ 13-25a-102 Definitions.

As used in this chapter:

(1) "Advertisement" means material offering for sale, or advertising the availability or quality of, any property, good, or service.

(2)

(a) "Automated telephone dialing system" means equipment used to:

(i) store or produce telephone numbers;

(ii) call a stored or produced number; and

(iii) connect the number called with a recorded message or artificial voice.

(b) "Automated telephone dialing system" does not include a system used in an emergency involving the immediate health or safety of a person, including a burglar alarm system, voice messaging system, fire alarm system, or other similar system.

(3) "Division" means the Division of Consumer Protection.

(4)

(a) "Established business relationship" means a relationship that:

(i) is based on inquiry, application, purchase, or transaction regarding products or services offered;

(ii) is formed by a voluntary two-way communication between a person making a telephone solicitation and a person to whom a telephone solicitation is made; and

(iii) has not been terminated by:

(A) an act by either person; or

(B) the passage of 18 months since the most recent inquiry, application, purchase, transaction, or voluntary two-way communication.

(b) "Established business relationship" includes a relationship with an affiliate as defined in Section 16-10a-102.

(5) "Facsimile machine" means equipment used for:

(a) scanning or encoding text or images for conversion into electronic signals for transmission; or

(b) receiving electronic signals and reproducing them as a duplicate of the original text or image.

(6) "Negative response" means a statement from a person stating the person does not wish to listen to the sales presentation or participate in the solicitation presented in the telephone call.

(7) "On-call emergency provider" means an individual who is required by an employer to be on call to respond to a medical emergency.

(8) "Telephone solicitation" means the initiation of a telephone call or message for a commercial purpose or to seek a financial donation, including calls:

(a) encouraging the purchase or rental of, or investment in, property, goods, or services, regardless of whether the transaction involves a nonprofit organization;

(b) soliciting a sale of or extension of credit for property or services to the person called;

(i) the direct solicitation of a sale of property or services to the person called; or

(ii) an extension of credit to the person called for a sale of property or services;

(d) soliciting a charitable contribution; or

(e) encouraging the person called to sell real or personal property.

(9) "Telephone solicitor" means an individual, firm, organization, partnership, association, or corporation who makes or causes to be made an unsolicited telephone call, including calls made by use of an automated telephone dialing system.

(10) "Unsolicited telephone call" means a telephone call for a commercial purpose or to seek a financial donation other than a call made:

(a) in response to an express request of the person called;

(b) primarily in connection with an existing debt or contract, payment or performance of which has not been completed at the time of the call;

(d) as required by law for a medical purpose.

§ 13-25a-103 Prohibited conduct for telephone solicitations -- Exceptions.

(1) Except as provided in Subsection (2), a person may not operate or authorize the operation of an automated telephone dialing system to make a telephone solicitation.

(2) A person may operate an automated telephone dialing system if a call is made:

(a) with the prior express consent of the person who is called agreeing to receive a telephone solicitation from a specific solicitor; or

(b) to a person with whom the solicitor has an established business relationship.

(3) A person may not make a telephone solicitation to a residential telephone or cellular telephone without prior express consent during any of the following times:

(a) between the hours of 9 p.m. and 8 a.m. local time;

(b) on a Sunday; or

(4) A person may not make or authorize a telephone solicitation in violation of Title 47 U.S.C. 227.

(5) A telephone solicitor who makes an unsolicited telephone call to a telephone number shall:

(a) identify the telephone solicitor;

(b) identify the business on whose behalf the telephone solicitor is soliciting;

(c) promptly identify the purpose of the call upon making contact by telephone with the person who is the object of the telephone solicitation;

(d) discontinue the solicitation if the person being solicited gives a negative response at any time during the telephone call; and

(e) hang up the phone, or in the case of an automated telephone dialing system operator, disconnect the automated telephone dialing system from the telephone line within 25 seconds of the termination of the call by the person being called.

(6) If a telephone solicitor's service or equipment is capable of displaying the telephone solicitor's telephone number through a caller identification service, the telephone solicitor may not withhold the display of the telephone solicitor's telephone number from a caller identification service when that number is being used for telemarketing purposes.

§ 13-25a-104 Prohibited conduct for facsimiles -- Exceptions.

(1) Except as provided in Subsection (2), a person may not operate or authorize the operation of a facsimile machine to send an advertisement.

(2) A person may operate a facsimile machine if the advertisement is sent:

(a) with the prior express written consent of the person who receives the facsimile agreeing to receive the facsimile from a specific solicitor; or

(b) to a person with whom the solicitor has an established business relationship.

(3) A person may not make or authorize the sending of an advertisement by facsimile in violation of Title 47 U.S.C. 227.

§ 13-25a-105 Penalties -- Administrative and criminal.

(1) Any person who violates this chapter is subject to:

(a) a cease and desist order; and

(b) an administrative fine of not less than $100 or more than $2,500 for each separate violation.

(2) Any person who violates this chapter by soliciting an on-call emergency provider while the on-call emergency provider is on call is subject to:

(a) a cease and desist order; and

(b) an administrative fine of not less than $1,000 or more than $2,500 for each separate violation.

(3) All administrative fines collected under this chapter shall be deposited in the Consumer Protection Education and Training Fund created in Section 13-2-109.

(4) Any person who intentionally violates this chapter is guilty of a class A misdemeanor and may be fined up to $2,500.

(5) A person intentionally violates this chapter if the violation occurs after the division, attorney general, or a district or county attorney notifies the person by certified mail that the person is in violation of this chapter.

§ 13-25a-106 Enforcement.

(1) The division shall investigate and assess administrative fines for violations of this chapter.

(2)

(a) Upon referral from the division, the attorney general or any district or county attorney may:

(i) bring an action for temporary or permanent injunctive or other relief in any court of competent jurisdiction for any violation of this chapter;

(ii) upon entry of final judgment, award restitution when appropriate to any person suffering loss because of a violation of this part if proof of loss is submitted to the satisfaction of the court; or

(iii) bring an action in any court of competent jurisdiction for the collection of penalties authorized under Subsection 13-25a-105(1).

(b) In an action under Subsection (2)(a), the attorney general or any district or county attorney may recover costs, including investigative costs and attorney fees, from any violator of this chapter.

§ 13-25a-107 Private action.

(1) In addition to any other remedies, a person may bring an action in any state court of competent jurisdiction if:

(a)

(i) the person has received two or more telephone solicitations or facsimile advertisements from the same individual or entity that:

(A) violates this chapter; or

(B) violates Title 47 U.S.C. 227; and

(ii) the person, following the first telephone solicitation or facsimile advertisement, notified the sender of the person's objection to receiving the telephone solicitation or facsimile advertisement; or

(b) the person has received one telephone solicitation or facsimile advertisement in violation of:

(i) Subsection 13-25a-103(1);

(ii) Subsection 13-25a-103(3);

(iii) Subsection 13-25a-103(5);

(iv) Subsection 13-25a-103(6); or

(v) Subsection 13-25a-104(1).

(2) In a suit brought under Subsection (1):

(a) a person may:

(i) recover the greater of $500 or the amount of the pecuniary loss, if any;

(ii) recover court costs and reasonable attorneys' fees as determined by the court; and

(iii) seek to enjoin any conduct in violation of this chapter; and

(b) if the court finds that a violation was knowing and willful:

(i) the court may award an individual treble the amount of the individual's pecuniary loss; or

(ii) the court may award an individual the greater of $1,000 or treble the amount of the individual's pecuniary loss if:

(A) the individual who received the solicitation is an on-call emergency provider;

(B) the individual was on call at the time the violation occurred; and

§ 13-25a-107.2 Requests to a specific telephone solicitor.

(1) A telephone solicitor may not make or cause to be made a telephone solicitation to a person who has informed the telephone solicitor, either in writing or orally, that the person does not wish to receive a telephone call from the telephone solicitor.

(2) A telephone solicitor is not liable for a violation of this section if the telephone solicitor complies with 16 C.F.R. Part 310.4(b)(3) and (4).

§ 13-25a-108 Prohibited telephone solicitations.

(1) A person may not make or cause to be made an unsolicited telephone call to a person:

(a) located in the state; and

(b)

(i) at a Utah telephone number contained in the national "do-not-call" registry established and maintained by the Federal Trade Commission under 16 C.F.R. 310.4(b)(1)(iii)(B); or

(ii) at a non-Utah telephone number contained in the national "do-not-call" registry established and maintained by the Federal Trade Commission under 16 C.F.R. 310.4(b)(1)(iii)(B), if the person making the call or causing the call to be made knows or reasonably should know that the person receiving the call is in Utah.

(2) Each unsolicited telephone call made in violation of this section is a separate violation.

§ 13-25a-111 Exemptions.

Notwithstanding any other provision of this chapter, Sections 13-25a-103 and 13-25a-108 do not apply toa person who holds and acts within the scope of a license or registration:

(1) under Title 31A, Insurance Code;

(2) issued by the Division of Real Estate established in Section 61-2-201; or

(3) issued by the National Association of Securities Dealers.

Chapter 26 Telephone Fraud Prevention Act

Part 1 General Provisions

§ 13-26-101 Definitions.

As used in this chapter:

(1) "Affiliated person" means a seller or a seller's contractor, director, employee, officer, owner, or partner.

(2) "Continuity plan" means a shipment, with the prior express consent of the buyer, at regular intervals of similar special-interest products, in which there is no binding commitment period or purchase amount.

(3) "Director" means the director of the division appointed under Section 13-2-103.

(4) "Division" means the Division of Consumer Protection created in Section 13-2-102.

(5) "Fictitious personal name" means a name other than an individual's legal name.

(6) "Material fact" means information that a person of ordinary intelligence or prudence would consider important in deciding whether to accept an offer extended through a telephone solicitation.

(7) "Material statement" means a statement a seller or a solicitor makes that a person of ordinary intelligence or prudence would consider important in deciding whether to accept an offer extended through a telephone solicitation.

(8) "Participant" means a person seeking to register or renew a registration as a seller including:

(a) a seller;

(b) an owner;

(d) a director;

(e) a member or manager of a limited liability company;

(f) a principal;

(g) a trustee;

(h) a general or limited partner;

(i) a sole proprietor; or

(j) an individual with a controlling interest in an entity.

(9) "Premium" means a gift, bonus, prize, award, certificate, or other document by which a prospective purchaser is given a right, chance, or privilege to purchase or receive goods or services with a stated or represented value of $25 or more as an inducement to a prospective purchaser to purchase other goods or services.

(10) "Seller" means a person, or a group of persons engaged in a common effort to conduct a telephone solicitation, that:

(a) on behalf of the person, or the group of persons engaged in a common effort to conduct a telephone solicitation:

(i) makes a telephone solicitation; or

(ii) causes a telephone solicitation to be made; or

(b) through a solicitor:

(i) makes a telephone solicitation; or

(ii) causes a telephone solicitation to be made.

(11) "Solicitor" means an individual who engages in a telephone solicitation on behalf of a seller.

(12) "Standing order arrangements," means a product or service that a person provides, with the prior express request or consent of the buyer, for a specified period of time at a price dependent on the duration of service and to complement an initial purchase.

(13)

(a) "Telephone solicitation" means:

(i) a sale or solicitation of goods or services in which:

(A)

(I) the seller solicits the sale over the telephone;

(II) the purchaser's agreement to purchase is made over the telephone; and

(III) the purchaser, over the telephone, pays for or agrees to commit to payment for goods or services prior to or upon receipt by the purchaser of the goods or services;

(B) the seller, not exempt under Section 13-26-104, induces a prospective purchaser over the telephone, to make and keep an appointment that directly results in the purchase of goods or services by the purchaser that would not have occurred without the telephone solicitation and inducement by the seller;

(I) the seller induces the prospective purchaser to initiate a telephone contact with the seller; and

(II) the resulting solicitation meets the requirements of this Subsection (13)(a); or

(D) the seller solicits a charitable donation involving the exchange of any premium, prize, gift, ticket, subscription, or other benefit in connection with an appeal made for a charitable purpose by an organization that is not otherwise exempt under Subsection 13-26-104(2)(b)(iv); or

(ii) a person making or causing to be made an unsolicited telephone call, including calls made by use of an automated telephone dialing system.

(b) "Telephone solicitation" does not include a sale or solicitation that occurs solely through a website without the use of a telephone call.

§ 13-26-102 Registration and surety bond or certificate of deposit required.

(1)

(a) Unless exempt under Section 13-26-104, a seller shall register annually with the division before engaging in telephone solicitations if:

(i) the seller engages in telephone solicitations that:

(A) originate in Utah; or

(B) are received in Utah; or

(ii) the seller, or a solicitor on behalf of the seller, conducts a business operation in Utah.

(2) To register as a seller, a person shall submit to the division a registration application:

(a) in the manner the division determines; and

(b) that includes:

(i) a registration application fee in an amount the division determines in accordance with Section 63J-1-504;

(ii) any information the division requires by rule the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(iii) a designated registered agent for service of process in this state and the registered agent's:

(A) name;

(B) street address;

(D) telephone number.

(3) A seller that is subject to this chapter shall obtain and maintain the following:

(a) a surety bond issued by a surety authorized to transact security business in this state; or

(b) a certificate of deposit held in this state in a financial institution authorized under the laws of this state or the laws of the United States to accept deposits from the public.

(4) The surety bond or certificate of deposit described in Subsection (3) shall be:

(a) in the amount of:

(i) $25,000 if:

(A) the seller or an affiliated person has not violated this chapter in the three-year period immediately before the day on which the seller files the application; and

(B) the seller has fewer than 10 employees;

(ii) $50,000 if:

(A) the seller or an affiliated person has not violated this chapter in the three-year period immediately before the day on which the seller files the application; and

(B) the seller has 10 or more employees; or

(iii) $75,000 if the seller or an affiliated person has violated this chapter in the three-year period immediately before the day on which the seller files the application; and

(b) payable to the division for the benefit of a consumer who incurs damages as the result of the seller's violation of this chapter.

(5) If the consumer recovers actual damages from an action resulting from the seller's violation of this chapter before the division distributes the funds in the surety bond or certificate of deposit described in Subsection (3) to the consumer in accordance with Subsection (4)(b), the division may recover from the surety bond or certificate of deposit:

(a) administrative fines;

(b) civil penalties;

(d) attorney fees; and

(e) other costs of collecting and distributing funds under this chapter.

(6) A seller shall submit to the division, as part of the seller's registration application:

(a) a fingerprint card in a form the division approves;

(b) consent to a criminal background check conducted by:

(i) the Bureau of Criminal Identification created in Section 53-10-201; or

(ii) another state or federal agency that performs criminal background checks; and

(c) provide a disclosure that states whether a seller or an affiliated person has been convicted of a felony or misdemeanor involving theft, fraud, or dishonesty, in the 10-year period immediately preceding the day on which the seller files the application.

(7) A seller shall pay the cost of:

(a) the fingerprint card described in Subsection (6)(a); and

(b) the criminal background check described in Subsection (6)(b).

(8) A seller registration is effective for one year after the day on which the division approves a seller's registration application.

(9) To renew a seller registration, a seller shall submit a registration renewal application to the division at least 30 days before the day on which the seller's registration expires.

(10) Registration under this section does not constitute an approval or endorsement of the seller by the division or the state.

§ 13-26-103 Denial, suspension, or revocation of an application or registration.

(1) the division finds that the denial, suspension, or revocation is in the public interest; and

(2)

(a) the registration is incomplete, false, or misleading; or

(b) the applicant or the applicant's principal:

(i) violates, causes a violation, allows a violation, or fails to satisfy the requirements of a provision of:

(A) this chapter; or

(B) a rule the division makes in accordance with this chapter;

(ii) violates Chapter 11, Utah Consumer Sales Practices Act;

(iii) is enjoined by a court, or is the subject of an administrative or judicial order issued in Utah or another state, if the order:

(A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or

(B) is based on a finding of a lack of integrity, truthfulness, or mental competence;

(iv) is convicted of a crime involving theft, fraud, or dishonesty;

(v) obtains or attempts to obtain a registration by misrepresenting a material fact;

(vi) fails to provide information the division requests;

(vii) fails to pay an administrative fine the division or an administrative or judicial order imposes; or

(viii) fails to pay the fee to file a registration application or a renewal application.

§ 13-26-104 Exemptions from registration.

(1) In an enforcement action initiated by the division, a person claiming an exemption has the burden of proving that the person is entitled to the exemption.

(2) The following are exempt from this chapter except for the requirements described in Sections 13-26-106 and 13-26-108:

(a) a broker, agent, dealer, or sales professional licensed in this state, when soliciting sales within the scope of the broker's, agent's, dealer's, or sales professional's license;

(b) the solicitation of sales by:

(i) a public utility that is regulated under Title 54, Public Utilities, or by an affiliate of the public utility;

(ii) a newspaper of general circulation;

(iii) a solicitation of sale made by a broadcaster licensed by a state or federal authority;

(iv) a nonprofit organization if no part of the net earnings from the sale inures to the benefit of:

(A) a member, officer, trustee, or serving board member of the organization; or

(B) an individual, or a family member of an individual, holding a position of authority or trust in the organization; and

(v) a person who periodically publishes and delivers a catalog of the seller's merchandise to prospective purchasers, if the catalog:

(A) contains the price and a written description or illustration of each item offered for sale;

(B) includes the seller's business address;

(D) is distributed in more than one state; and

(E) has an annual circulation by mailing of not less than 250,000;

(c) a publicly traded corporation registered with the Securities and Exchange Commission, or a subsidiary of the publicly traded corporation;

(d) the solicitation of a depository institution as defined in Section 7-1-103, a subsidiary of a depository institution, personal property broker, securities broker, investment adviser, consumer finance lender, or insurer subject to regulation by an official agency of this state or the United States;

(e) the solicitation by a person soliciting only the sale of telephone services to be provided by the person or the person's employer;

(f) the solicitation of a person relating to a transaction regulated by the Commodities Futures Trading Commission, if:

(i) the person is registered with or temporarily licensed by the commission to conduct the activity under the Commodity Exchange Act; and

(ii) the registration or license has not expired or been suspended or revoked;

(g) the solicitation of a contract for the maintenance or repair of goods previously purchased from the person:

(i) who is making the solicitation; or

(ii) on whose behalf the solicitation is made;

(h) the solicitation of previous customers of the person on whose behalf the call is made if the person making the call:

(i) does not offer any premium in conjunction with a sale or offer;

(ii) is not selling an investment or an opportunity for an investment that is not registered with a state or federal authority; and

(iii) is not regularly engaged in telephone sales;

(i) the solicitation of a sale that is an isolated transaction and not done in the course of a pattern of repeated transactions of a similar nature;

(j) the solicitation of a person by a retail business that has been in operation for at least five years in Utah under the same name as that used in connection with telemarketing if the following occur on a continuing basis:

(i) at the retail business's place of business, the retail business:

(A) displays and offers products for sale; or

(B) offers services for sale and provides the services at the place of business; and

(ii) a majority of the retail business's business involves the activities described in Subsection (2)(j)(i);

(k) a person primarily soliciting the sale of a magazine or periodical sold by the publisher or the publisher's agent through a written agreement, or printed or recorded material through a contractual plan, such as a book or record club, continuity plan, or standing order arrangement, if:

(i) the person provides the consumer with a form that the consumer may use to instruct the person not to ship the offered merchandise, and the arrangement is regulated by the Federal Trade Commission trade regulation concerning use of negative option plans by a person making a sale in commerce; or

(ii)

(A) the person periodically ships merchandise to a consumer who has consented in advance to receive the merchandise on a periodic basis; and

(B) the consumer retains the right to cancel at any time and receive a full refund for the unused portion;

(l) a telephone marketing service company that provides telemarketing sales services under contract to a person making a sale if:

(i) the telephone marketing service company has been doing business regularly with customers in Utah for at least five years under the same business name and with the telephone marketing service company's principal office in the same location;

(ii) at least 75% of the telephone marketing service company's contracts are performed on behalf of persons exempt from registration under this chapter; and

(iii) neither the telephone marketing service company nor the telephone marketing service company's principals have been enjoined from doing business or subjected to criminal actions for the telephone marketing service company's or the telephone marketing company's principal's business activities in this or any other state;

(m) a credit services organization that holds a current registration with the division under Chapter 21, Credit Services Organizations Act, if the credit services organization's telephone solicitations are limited to the solicitation of services regulated under Chapter 21, Credit Services Organizations Act; and

(n) a provider that holds a current registration with the division under Chapter 42, Uniform Debt-Management Services Act, if the provider's telephone solicitations are limited to the solicitation of services regulated under Chapter 42, Uniform Debt-Management Services Act.

§ 13-26-105 Right of rescission -- Cancellation.

(1) As used in this section, "business day" means a day other than Saturday, Sunday or a federal or state holiday.

(2) Before engaging in a solicitation with a consumer, a seller or a seller's solicitor shall orally advise the consumer of the seller or the seller's solicitor's:

(a) legal name;

(b) telephone number;

(d) email address.

(3)

(a) Except as provided in Subsections (3)(b) and (c), in addition to any right to otherwise revoke an offer, a person who makes a purchase from a seller may cancel the sale at or before 11:59 p.m. on the third business day after the day on which the person receives the merchandise or premium, whichever is later, provided that the seller or the seller's solicitor advises the purchaser of the purchaser's cancellation rights under this chapter at the time the seller or seller's solicitor makes the solicitation.

(b) If the seller or the seller's solicitor fails to orally advise a purchaser of the right to cancel under this section at the time of a solicitation, the purchaser's right to cancel is extended to 90 days after the day on which the person receives the merchandise or premium.

(c) If the seller or the seller's solicitor fails to orally advise a purchaser of the seller's or the seller's solicitor's legal name, telephone number, and complete address at the time of a solicitation, the purchaser may cancel the sale at any time.

(d) Except as provided in Subsection (6), a seller shall provide a full refund to a purchaser who cancels a sale in accordance with this section.

(4) A purchaser may cancel a sale by:

(a) mailing a notice of cancellation to the seller or seller's solicitor's address, or email address the seller or seller's solicitor provides in accordance with Subsection (2); or

(b) if the seller or the seller's solicitor fails to provide the purchaser with the seller's or the seller's solicitor's address or email address in accordance with Subsection (2), sending a written notice of cancellation to the division's office.

(5)

(a) If a purchaser cancels a sale and the seller or the seller's solicitor complies with Subsection (2), the purchaser shall, within seven business days after the day on which the purchaser exercises the right to cancel, make a reasonable attempt to:

(i) if the canceled sale involves durable goods, return the goods to the seller; or

(ii) if the canceled sale involves expendable goods, return any unused portion of the goods to the seller.

(b) If the seller or the seller's solicitor fails to provide the information required by Subsection (2), a purchaser who cancels a sale is not required to return any canceled goods to the seller.

(6)

(a) If the purchaser who cancels a sale has used any portion of the services or goods purchased, the purchaser shall provide the seller a reasonable allowance for the value given.

(b) A seller may deduct the reasonable allowance described in Subsection (6)(a) from any refund due the purchaser.

§ 13-26-106 Penalties and enforcement.

(1) In addition to the division's enforcement powers described in Chapter 2, Division of Consumer Protection:

(a) the director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(b) the division may bring an action in a court with jurisdiction to enforce a provision of this chapter.

(2) If the division brings an action in accordance with Subsection (1)(b):

(a) the court may:

(i) declare that an act or practice violates a provision of this chapter;

(ii) issue an injunction for a violation of this chapter;

(iii) order disgorgement of any money received in violation of this chapter;

(iv) order payment of disgorged money to an injured purchaser or consumer;

(v) impose a fine of up to $2,500 for each violation of this chapter; or

(vi) award any other relief that the court deems reasonable and necessary; and

(b) if the court grants judgment or injunctive relief to the division, the court shall award the division:

(i) reasonable attorney fees;

(ii) court costs; and

(iii) investigative fees.

(3)

(a) A person that violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.

(b) A court may impose a civil penalty authorized under this section in a civil action brought by the division.

(4)

(a) A seller or solicitor who violates a provision of this chapter is guilty of:

(i) a class B misdemeanor for a first violation;

(ii) if the seller or solicitor has one prior violation of this chapter, a class A misdemeanor; and

(iii) if the seller or solicitor has two prior violations of this chapter, a third-degree felony.

(b) For the purposes of Subsection (5)(a), a prior violation includes:

(i) a final prior conviction;

(ii) a final determination by a court of competent jurisdiction; or

(iii) a final determination in an administrative adjudicative proceeding.

(5) For purposes of this section, each telephone solicitation a person makes in violation of this chapter is a separate violation.

§ 13-26-107 Provisions of chapter not exclusive.

The remedies, duties, prohibitions, and penalties of this chapter are not exclusive and are in addition to all other causes of action, remedies, and penalties provided by law.

§ 13-26-108 Prohibited practices.

(1) It is unlawful for a seller to:

(a) solicit a prospective purchaser if the seller is not registered with the division or is exempt from registration under this chapter;

(b) in connection with a telephone solicitation, make or cause to be made a false statement or fail to disclose a material fact necessary to make the seller's statement not misleading;

(c) make or authorize the making of a misrepresentation to a purchaser or prospective purchaser about the seller's compliance with this chapter;

(d) fail to refund within 30 days any amount due a purchaser who exercises the right to cancel under Section 13-26-105;

(e) unless the seller is exempt under Section 13-26-104, fail to orally advise a purchaser of the purchaser's right to cancel under Section 13-26-105;

(f) employ an inmate in a correctional facility for telephone soliciting operations when the employment would give the inmate access to an individual's personal data, including the individual's name, address, telephone number, Social Security number, credit card information, or physical description; or

(g) cause or permit a solicitor to violate a provision of this chapter.

(2) It is unlawful for a solicitor to:

(a) use a fictitious personal name in connection with a telephone solicitation;

(b) in connection with a telephone solicitation, make or cause to be made a false material statement or fail to disclose a material fact necessary to make the solicitor's statement not misleading;

(c) make a misrepresentation to a purchaser or prospective purchaser about the solicitor's compliance with this chapter; or

(d) unless the solicitor is exempt under Section 13-26-104, fail to orally advise a purchaser of the purchaser's right to cancel under Section 13-26-105.

(3) If a person knows or has reason to know that a seller or solicitor engages in an act or practice that violates this chapter, it is unlawful for the person to:

(a) benefit from the seller's or solicitor's services; or

(b) provide substantial assistance or support to the seller or solicitor.

(4) A seller or a seller's solicitor may not:

(a) represent that the division or the state approves or endorses the seller;

(b) omit from a filing with the division a material statement of fact required by:

(i) this chapter; or

(ii) a rule made by the division in accordance with this chapter; or

(c) include in a filing with the division a material statement of fact that the seller or seller's principal knew or should have known to be false, deceptive, inaccurate, or misleading.

(5) A solicitation of sale or telephone solicitation is considered complete when made, regardless of whether the person receiving the solicitation agrees to the sale or to make a charitable donation.

Chapter 28 Prize Notices Regulation Act

§ 13-28-1 Title.

This chapter shall be known as the "Prize Notices Regulation Act."

§ 13-28-2 Definitions.

For the purpose of this part:

(1) "Division" means the Division of Consumer Protection in the Department of Commerce.

(2) "Prize" means a gift, award, or other item or service of value.

(3)

(a) "Prize notice" means a notice given to an individual in this state that satisfies all of the following:

(i) is or contains a representation that the individual has been selected or may be eligible to receive a prize; and

(ii) conditions receipt of a prize on a payment or donation from the individual or requires or invites the individual to make a contact to learn how to receive the prize or to obtain other information related to the notice.

(b) "Prize notice" does not include:

(i) a notice given at the request of the individual; or

(ii) a notice informing the individual that he or she has been awarded a prize as a result of his actual prior entry in a game, drawing, sweepstakes, or other contest if the individual is awarded the prize stated in the notice.

(4) "Solicitor" means a person who represents to an individual that the individual has been selected or may be eligible to receive a prize.

(5) "Sponsor" means a person on whose behalf a solicitor gives a prize notice.

(6) "Verifiable retail value" of a prize means:

(a) a price at which the solicitor or sponsor can demonstrate that a substantial number of the prizes have been sold by a person other than the solicitor or sponsor in the trade area in which the prize notice is given; or

(b) if the solicitor or sponsor is unable to satisfy Subsection (6)(a), no more than 1.5 times the amount the solicitor or sponsor paid for the prize.

§ 13-28-3 Notice requirement.

If a solicitor represents to an individual that he has been selected or may be eligible to receive a prize, the solicitor may not request, and the solicitor or sponsor may not accept, a payment from the individual in any form before the individual receives a written prize notice that contains all of the information required under Subsection 13-28-4(1) presented in the manner required under Subsections 13-28-4(2) through (6).

§ 13-28-4 Contents of notices.

(1) A written prize notice shall contain all of the following information presented in the manner required under Subsections (2) through (6):

(a) the name and address of the solicitor and sponsor;

(b) the verifiable retail value of each prize the individual has been selected or may be eligible to receive;

(c) if the notice lists more than one prize that the individual has been selected or may be eligible to receive, a statement of the odds the individual has of receiving each prize;

(d) any requirement or invitation for the individual to view, hear, or attend a sales presentation in order to claim a prize, the approximate length of the sales presentation and a description of the property or service that is the subject of the sales presentation;

(e) any requirement that the individual pay shipping or handling fees or any other charges to obtain or use a prize;

(f) if receipt of the prize is subject to a restriction, a statement that a restriction applies, a description of the restriction, and a statement containing the location in the notice where the restriction is described; and

(g) any limitations on eligibility.

(2)

(a) The verifiable retail value and the statement of odds required in a written prize notice under Subsections (1)(b) and (c) shall be stated in immediate proximity to each listing of the prize in each place the prize appears on the written prize notice and shall be in the same size and boldness of type as the prize.

(b) The statement of odds shall include, for each prize, the total number of prizes to be given away and the total number of written prize notices to be delivered. The number of prizes and written prize notices shall be stated in Arabic numerals. The statement of odds shall be in the following form: "...(number of prizes) out of... written prize notices".

(3) If an individual is required to pay shipping or handling fees or any other charges to obtain or use a prize, the following statement shall appear in immediate proximity to each listing of the prize in each place the prize appears in the written prize notice and shall be in not less than 10-point boldface type: "YOU MUST PAY $.... IN ORDER TO RECEIVE OR USE THIS ITEM."

(4) The information required in a written prize notice under Subsection (1)(d) shall be on the first page of the written prize notice in not less than 10-point boldface type. The information required under Subsections (1)(f) and (g) shall be in not less than 10-point boldface type.

(5) If a written prize notice is given by a solicitor on behalf of a sponsor, the name of the sponsor shall be more prominently and conspicuously displayed than the name of the solicitor.

(6) A solicitor or sponsor may not do any of the following:

(a) place on an envelope containing a written prize notice any representation that the person to whom the envelope is addressed has been selected or may be eligible to receive a prize;

(b) deliver a written prize notice that contains language, or is designed in a manner that would lead a reasonable person to believe that it originates from a government agency, public utility, insurance company, consumer reporting agency, debt collector, accounting or law firm unless the written prize notice originates from that source; or

(c) represent directly or by implication that the number of individuals eligible for the prize is limited or that an individual has been separately selected to receive a particular prize unless the representation is true.

§ 13-28-5 Sales presentations.

If a prize notice requires or invites an individual to view, hear, or attend a sales presentation in order to claim a prize, the sales presentation may not begin until the solicitor does all of the following:

(1) informs the individual of the prize, if any, that has been selected to be received by or awarded to the individual; and

(2) if the individual has been awarded a prize, delivers to the individual the prize or the item selected by the individual under Section 13-28-6 if the prize is not available.

§ 13-28-6 Prize awards -- Options if unavailable.

(1) A solicitor who represents to an individual in a written prize notice that the individual has been awarded a prize shall provide the prize to the individual unless the prize is not available. If the prize is not available, the solicitor shall provide the individual with any one of the following items selected by the individual:

(a) any other prize listed in the written prize notice that is available and that is of equal or greater value;

(b) the verifiable retail value of the prize in the form of cash, a money order, or a certified check; or

(c) a voucher, certificate, or other evidence of obligation stating that the prize will be shipped to the individual within 30 days at no cost to the individual.

(2) If a voucher, certificate, or other evidence of obligation delivered under Subsection (1)(c) is not honored within 30 days, the solicitor shall deliver to the individual the verifiable retail value of the prize in the form of cash, a money order, or a certified check. The sponsor shall make the payment to the individual if the solicitor fails to do so.

§ 13-28-7 Penalties -- Administrative and criminal.

(1) Any person who violates this chapter shall be subject to:

(a) a cease and desist order; and

(b) an administrative fine of not less than $100 or more than $5,000 for each separate violation.

(2) All administrative fines shall be deposited in the Consumer Protection Education and Training Fund created in Section 13-2-109.

(3) Any person who intentionally violates this part is guilty of a class A misdemeanor and may be fined up to $10,000. A person intentionally violates this part if the violation occurs after the division, attorney general, or a district or county attorney notifies the person by certified mail that the person is in violation of this chapter.

§ 13-28-8 Enforcement.

(1) The division shall investigate and assess administrative fines for violations of this chapter.

(2) Upon referral from the division, the attorney general or any district or county attorney may:

(a) bring an action for temporary or permanent injunctive or other relief in any court of competent jurisdiction for any violation of this part. The court may, upon entry of final judgment, award restitution when appropriate to any person suffering loss because of a violation of this part if proof of loss is submitted to the satisfaction of the court;

(b) bring an action in any court of competent jurisdiction for the collection of penalties authorized under Subsection 13-28-7(1); or

§ 13-28-9 Private action.

In addition to any other remedies, a person suffering pecuniary loss because of a violation by another person of this chapter may bring an action in any court of competent jurisdiction and may recover:

(1) the greater of $500 or twice the amount of the pecuniary loss; and

(2) court costs and reasonable attorney's fees as determined by the court.

Chapter 31 Mold Retention and Lien Act

Part 1 General Provisions

§ 13-31-101 Title.

This chapter shall be known as the "Mold Retention and Lien Act."

§ 13-31-102 Definitions.

As used in this chapter:

(1) "All rights and title" does not include rights or title in patents or copyrights.

(2) "Customer" means a person that:

(a) causes a molder to fabricate, cast, or otherwise make a mold; or

(b) provides a molder with a mold to make a product for the customer.

(3) "Make" includes to manufacture, assemble, cast, or fabricate.

(4) "Mold" includes a die, form, or pattern.

(5)

(a) "Molder" means a person that makes or uses a mold for the purpose of making a product for a customer.

(b) "Molder" includes a tool or die maker.

§ 13-31-103 Relationship to federal law.

This chapter does not affect any right of a customer under federal law related to patent, copyright, or unfair competition.

Part 2 Retention of Molds

§ 13-31-201 Ownership rights to molds.

(1) Unless otherwise agreed to by the molder and the customer, the customer has all rights and title to a mold in the possession of the molder.

(2) If a customer does not claim possession from a molder of a mold within three years following the last prior use of the mold, all rights and title to the mold may be transferred to the molder in accordance with Section 13-31-202 for the purpose of destroying or otherwise disposing of the mold.

§ 13-31-202 Transfer of ownership to molder.

(1) If a customer does not claim possession from a molder of a mold within three years following the last prior use of the mold, the molder may transfer all rights and title to the mold in accordance with this section.

(2)

(a) Prior to obtaining all rights and title to the mold, the molder shall send written notice by registered mail to the last-known address of the customer notifying the customer that the molder is terminating the customer's rights and title to the mold.

(b) The notice required under Subsection (2)(a) shall disclose the rights of the customer under Subsection (3).

(3) All rights and title of the customer to the mold are transferred to the molder 120 days from the date the notice required by Subsection (2)(a) is sent unless the customer:

(a) responds in person or by mail to claim possession of the mold within the 120-day period; or

(b) makes other contractual arrangements with the molder for the storage of the mold.

(4) After rights and title to a mold are transferred to the molder under Subsection (2), the molder may destroy or otherwise dispose of the mold without liability to the customer.

§ 13-31-203 Scope of part.

In determining whether a customer has claimed possession of a mold within three years following the last prior use, a molder may include any period following the last prior use of a mold even if that period is prior to May 4, 1998.

Part 3 Mold Liens

§ 13-31-301 Mold liens.

(1) If a molder has possession of a mold belonging to a customer, the molder has a lien on the mold for the balance due from the customer for:

(a) work for the customer involving the mold; and

(b) the value of all materials related to work described in Subsection (1)(a).

(2)

(a) Prior to enforcing the lien, the molder shall deliver or send written notice by registered mail to the last-known address of the customer notifying the customer that the molder intends to enforce the lien.

(b) The notice required by Subsection (2)(a) shall:

(i) state that the lien is claimed for damages for failure to pay under a contract for work for the customer involving the mold;

(ii) include a demand for payment; and

(iii) be accompanied by the written contract, if any, for the work performed for the customer.

(3) If the molder is not paid the amount due within 60 days from the day the notice required by Subsection (2) is received by the customer, the molder may sell the mold at a public auction in accordance with Section 13-31-302.

§ 13-31-302 Sale of molds for payment of lien.

(1)

(a) Prior to selling a mold, the molder shall send written notice by registered mail to the last-known address of the customer.

(b) The notice required by Subsection (1)(a) shall include:

(i) the molder's intention to sell the mold 30 days from the day the customer received the notice;

(ii) the description of the mold to be sold;

(iii) the time and place of the sale; and

(iv) an itemized statement for the amount due the molder from the customer.

(c) A molder shall publish notice of the molder's intention to sell a mold in a newspaper of general circulation covering the customer's last-known address and as required in Section 45-1-101 if:

(i) the receipt of the mailing of the notice described in Subsection (1)(a) is not returned; or

(ii) the postal service returns the notice described in Subsection (1)(a) as being nondeliverable.

(d) The notice provided for in Subsection (1)(c) shall include a description of the mold.

(2) A molder may sell a mold 30 days from the later of the day:

(a) the customer received the notice in accordance with Subsection (1)(a); or

(b) the date the molder published the notice under Subsection (1)(c).

(3) If from the sale of a mold under this section the molder receives an amount in excess of the amount of the lien, the excess shall be paid as follows:

(a) to any prior lienholder known to the molder at the time of the sale; and

(b) after paying any lienholder under Subsection (3)(a), the remainder:

(i) if the customer's address is known at the time of sale, to the customer; or

(ii) if the customer's address is not known at the time of sale, to the state in accordance with Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act.

Chapter 32 Swap Meets and Flea Markets Act

§ 13-32-101 Title.

This chapter is known as the "Swap Meets and Flea Markets Act."

§ 13-32-102 Definitions.

(1) "Manufacturer's or distributor's representative" means a person who has available for public inspection written proof of authorization from the manufacturer or distributor of a product to offer that product for public retail sale.

(2) "New and unused property" means tangible personal property that:

(a) was acquired by the vendor directly from the producer, manufacturer, wholesaler, or retailer of that property in the ordinary course of business;

(b) has never been used since its production or manufacturing; and

(c) if the property was packaged when originally produced or manufactured, is in its original and unopened package or container.

(3)

(a) "Swap meet" or "flea market" means an event at which personal property is offered for sale or exchange:

(i) by two or more persons and a fee is charged to vendors for the privilege of offering or displaying such personal property or to prospective buyers for admission to the area where such personal property is offered or displayed for sale; or

(ii) if the event is held more than six times in any 12-month period, regardless of the number of persons offering or displaying personal property or the absence of fees.

(b) The terms "swap meet" and "flea market" do not include any events:

(i) that are organized for the exclusive benefit of any community chest, fund, foundation, association, or corporation organized and operated exclusively for religious, educational, or charitable purposes; or

(ii) at which all of the personal property offered for sale or displayed is new and unused property, and all persons selling, exchanging, offering, or displaying the personal property are manufacturer's or distributor's representatives.

(4) "Vendor" means a person who offers for sale or exchange six or more like items of new and unused property at a swap meet or flea market in this state.

§ 13-32-103 Prohibited sales.

A vendor who is not a manufacturer's or distributor's representative may not sell or offer for sale or exchange at a swap meet or flea market any:

(1) food product which is manufactured and packaged specifically for consumption by a child under two years of age;

(2) nonprescription or over-the-counter drug or medication other than herbal products, dietary supplements, botanical extracts, or vitamins; or

(3) cosmetic or personal care product which has an expiration date.

§ 13-32-104 Receipts and transaction records -- Retention of receipts and transaction records.

(1) Every vendor shall maintain receipts or a permanent record book for the acquisition of new and unused property which shall contain:

(a) the date of the transaction on which the property was acquired;

(b) the name and address of the person from whom the property was acquired;

(d) the price paid for such property; and

(e) the signatures of the person selling the property and the vendor.

(2) The receipt or record for each transaction required by Subsection (1) shall be maintained by the vendor for a period of not less than one year following the date of the transaction.

§ 13-32-105 Violations.

(1) It is a violation of this chapter for any vendor, required to maintain receipts or records under Section 13-32-104, to knowingly:

(a) falsify, obliterate, or destroy the receipts or records;

(b) refuse or fail to make such receipts available for inspection, upon the request of a law enforcement officer, within a reasonable period of time under the circumstances surrounding the request; or

(c) present credentials pursuant to the requirements of this chapter which are false, fraudulent, forged, or fraudulently obtained.

(2) Nothing contained within this section shall be construed to require a vendor to possess the receipts or records required by Section 13-32-104 on or about the vendor's person without reasonable notice.

§ 13-32-106 Penalties.

A person who violates this chapter is guilty of an infraction.

§ 13-32-107 Exemptions.

The provisions of this chapter do not apply to:

(1) the sale of a motor vehicle or trailer that is required to be registered or is subject to the certificate of title laws of this state;

(2) the sale of agricultural products, forestry products, livestock, or food products other than those which are manufactured and packaged specifically for consumption by a child under two years of age;

(3) business conducted at any industry or association trade show;

(4) the sale of arts or crafts by the person who produced such arts and crafts; and

(5) anyone who displays only samples, catalogs, or brochures and sells property for future delivery.

Chapter 32a Pawnshop, Secondhand Merchandise, and Catalytic Converter Transaction Information Act

§ 13-32a-102 Definitions.

As used in this chapter:

(1) "Account" means the Pawnbroker, Secondhand Merchandise, and Catalytic Converter Operations Restricted Account created in Section 13-32a-113.

(2) "Antique item" means an item:

(a) that is generally older than 25 years;

(b) whose value is based on age, rarity, condition, craftsmanship, or collectability;

(c) that is furniture or other decorative objects produced in a previous time period, as distinguished from new items of a similar nature; and

(d) obtained from auctions, estate sales, other antique shops, and individuals.

(3) "Antique shop" means a business operating at an established location that deals primarily in the purchase, exchange, or sale of antique items.

(4) "Automated recycling kiosk" means an interactive machine that:

(a) is installed inside a commercial site used for the selling of goods and services to consumers;

(b) is monitored remotely by a live representative during the hours of operation;

(d) has the following technological functions:

(i) verifies the seller's identity by a live representative using the individual's identification;

(ii) generates a ticket; and

(iii) electronically transmits the secondhand merchandise transaction information to the central database.

(5) "Automated recycling kiosk operator" means a person whose sole business activity is the operation of one or more automated recycling kiosks.

(6) "Catalytic converter" means the same as that term is defined in Section 76-6-1402.

(7)

(a) "Catalytic converter purchase" means a purchase from an individual of a used catalytic converter that is no longer affixed to a vehicle.

(b) "Catalytic converter purchase" does not mean a purchase of a catalytic converter:

(i) from a business regularly engaged in automobile repair, crushing, dismantling, recycling, or salvage;

(ii) from a new or used vehicle dealer licensed under Title 41, Chapter 3, Motor Vehicle Business Regulation Act;

(iii) from another catalytic converter purchaser; or

(iv) that has never been affixed to a vehicle.

(8) "Catalytic converter purchaser" means a person who purchases a used catalytic converter in a catalytic converter purchase.

(9) "Central database" or "database" means the electronic database created and operated under Section 13-32a-105.

(10) "Children's product" means a used item that is for the exclusive use of children, or for the care of children, including clothing and toys.

(11) "Children's product resale business" means a business operating at a commercial location and primarily selling children's products.

(12) "Coin" means a piece of currency, usually metallic and usually in the shape of a disc that is:

(a) stamped metal, and issued by a government as monetary currency; or

(b)

(i) worth more than its current value as currency; and

(ii) worth more than its metal content value.

(13) "Coin dealer" means a person whose sole business activity is the selling and purchasing of numismatic items and precious metals.

(14) "Collectible paper money" means paper currency that is no longer in circulation and is sold and purchased for the paper currency's collectible value.

(15)

(a) "Commercial grade precious metals" or "precious metals" means ingots, monetized bullion, art bars, medallions, medals, tokens, and currency that are marked by the refiner or fabricator indicating their fineness and include:

(i) .99 fine or finer ingots of gold, silver, platinum, palladium, or other precious metals; or

(ii) .925 fine sterling silver ingots, art bars, and medallions.

(b) "Commercial grade precious metals" or "precious metals" does not include jewelry.

(16) "Consignment shop" means a business, operating at an established location:

(a) that deals primarily in the offering for sale property owned by a third party; and

(b) where the owner of the property only receives consideration upon the sale of the property by the business.

(17) "Division" means the Division of Consumer Protection created in Chapter 1, Department of Commerce.

(18) "Exonumia" means a privately issued token for trade that is sold and purchased for the token's collectible value.

(19) "Gift card" means a record that:

(a) is usable at:

(i) a single merchant; or

(ii) a specified group of merchants;

(b) is prefunded before the record is used; and

(20) "Identification" means any of the following non-expired forms of identification issued by a state government, the United States government, or a federally recognized Indian tribe, if the identification includes a unique number, photograph of the bearer, and date of birth:

(a) a United States Passport or United States Passport Card;

(b) a state-issued driver license;

(d) a state-issued concealed carry permit;

(e) a United States military identification;

(f) a United States resident alien card;

(g) an identification of a federally recognized Indian tribe; or

(h) notwithstanding Section 53-3-207, a Utah driving privilege card.

(21) "IMEI number" means an International Mobile Equipment Identity number.

(22) "Indicia of being new" means property that:

(a) is represented by the individual pawning or selling the property as new;

(b) is unopened in the original packaging; or

(23) "Local law enforcement agency" means the law enforcement agency that has direct responsibility for ensuring compliance with central database reporting requirements for the jurisdiction where the pawn or secondhand business or catalytic converter purchaser is located.

(24) "Numismatic item" means a coin, collectible paper money, or exonumia.

(25) "Original victim" means a victim who is not a party to the pawn or sale transaction or catalytic converter purchase and includes:

(a) an authorized representative designated in writing by the original victim; and

(b) an insurer who has indemnified the original victim for the loss of the described property.

(26) "Pawn or secondhand business" means a business operated by a pawnbroker or secondhand merchandise dealer, or the owner or operator of the business.

(27) "Pawn transaction" means:

(a) an extension of credit in which an individual delivers property to a pawnbroker for an advance of money and retains the right to redeem the property for the redemption price within a fixed period of time;

(b) a loan of money on one or more deposits of personal property;

(c) the purchase, exchange, or possession of personal property on condition of selling the same property back again to the pledgor or depositor; or

(d) a loan or advance of money on personal property by the pawnbroker taking chattel mortgage security on the personal property, taking or receiving the personal property into the pawnbroker's possession, and selling the unredeemed pledges.

(28) "Pawnbroker" means a person whose business:

(a) engages in a pawn transaction; or

(b) holds itself out as being in the business of a pawnbroker or pawnshop, regardless of whether the person or business enters into pawn transactions or secondhand merchandise transactions.

(29) "Pawnshop" means the physical location or premises where a pawnbroker conducts business.

(30) "Pledgor" means an individual who conducts a pawn transaction with a pawnshop.

(31) "Property" means an article of tangible personal property, numismatic item, precious metal, gift card, transaction card, or other physical or digital card or certificate evidencing store credit, and includes a wireless communication device.

(32) "Retail media item" means recorded music, a movie, or a video game that is produced and distributed in hard copy format for retail sale.

(33) "Scrap jewelry" means an item purchased solely:

(a) for its gold, silver, or platinum content; and

(b) for the purpose of reuse of the metal content.

(34)

(a) "Secondhand merchandise dealer" means a person whose business:

(i) engages in a secondhand merchandise transaction; and

(ii) does not engage in a pawn transaction.

(b) "Secondhand merchandise dealer" includes a coin dealer and an automated recycling kiosk operator.

(i) an antique shop when dealing in antique items;

(ii) a person who operates an auction house, flea market, or vehicle, vessel, and outboard motor dealers as defined in Section 41-1a-102;

(iii) the sale of secondhand goods at events commonly known as "garage sales," "yard sales," "estate sales," "storage unit sales," or "storage unit auctions";

(iv) the sale or receipt of secondhand books, magazines, post cards, or nonelectronic:

(A) card games;

(B) table-top games; or

(v) the sale or receipt of used merchandise donated to recognized nonprofit, religious, or charitable organizations or any school-sponsored association, and for which no compensation is paid;

(vi) the sale or receipt of secondhand clothing, shoes, furniture, or appliances;

(vii) a person offering the person's own personal property for sale, purchase, consignment, or trade via the Internet;

(viii) a person offering the personal property of others for sale, purchase, consignment, or trade via the Internet, when that person does not have, and is not required to have, a local business or occupational license or other authorization for this activity;

(ix) an owner or operator of a retail business that:

(A) receives used merchandise as a trade-in for similar new merchandise ; or

(B) receives used retail media items as a trade-in for similar new or used retail media items;

(x) an owner or operator of a business that contracts with other persons to offer those persons' secondhand goods for sale, purchase, consignment, or trade via the Internet;

(xi) any dealer as defined in Section 76-6-1402, that concerns scrap metal and secondary metals;

(xii) the purchase of items in bulk that are:

(A) sold at wholesale in bulk packaging;

(B) sold by a person licensed to conduct business in Utah; and

(xiii) the owner or operator of a children's product resale business;

(xiv) a consignment shop when dealing in consigned property; or

(xv) a catalytic converter purchaser.

(35) "Secondhand merchandise transaction" means the purchase or exchange of used or secondhand property.

(36) "Ticket" means a document upon which information is entered when a pawn transaction or secondhand merchandise transaction is made.

(37) "Transaction card" means a card, code, or other means of access to a value with the retail business issued to a person that allows the person to obtain, purchase, or receive any of the following:

(a) goods;

(b) services;

(d) anything else of value.

(38) "Wireless communication device" means a cellular telephone or a portable electronic device designed to receive and transmit a text message, email, video, or voice communication.

§ 13-32a-102.5 Administration and enforcement.

(1) The division shall administer and enforce this chapter in accordance with the authority under Title 13, Chapter 2, Division of Consumer Protection.

(2) Reasonable attorney fees, costs, and interest shall be awarded to the division in any action brought to enforce the provisions of this chapter.

(3) Municipal and county law enforcement agencies, prosecutorial agencies, and governmental agencies may enforce the criminal and civil provisions of this chapter.

§ 13-32a-103.1 Transaction or gift cards.

(1) A retail business engaging in a transaction involving a transaction card or gift card issued by that retail business and that bears the branding of that retail business is not subject to this chapter.

(2) A pawn or secondhand business may not purchase or pawn a gift card or transaction card.

(3) This chapter does not prohibit a pawn or secondhand business from issuing or accepting as payment a gift card that:

(a) is issued solely by the pawn or secondhand business; and

(b) bears the brand or name of the pawn or secondhand business.

§ 13-32a-103.5 Specie legal tender exempt from chapter.

Specie legal tender as defined in Section 59-1-1501.1 that is used as legal tender is exempt from this chapter.

§ 13-32a-104 Tickets required to be maintained -- Contents -- Identification of items -- Exceptions -- Prohibition against pawning or selling certain property.

(1) A pawn or secondhand business shall keep a ticket for property a person pawns or sells to the pawn or secondhand business. A pawn or secondhand business shall document on the ticket the following information regarding the property:

(a) the date and time of the transaction;

(b) whether the transaction is a pawn or purchase;

(d) the date by which the property must be redeemed, if the property is pawned;

(e) the following information regarding the individual who pawns or sells the property:

(i) the individual's full name and date of birth as they appear on the individual's identification and the individual's residence address and telephone number;

(ii) the unique number and type of identification presented to the pawn or secondhand business;

(iii) the individual's signature; and

(iv)

(A) subject to any rule made under Subsection (8), an electronic or tangible legible fingerprint of the individual's right index finger, or if the right index finger cannot be fingerprinted, a legible fingerprint of the individual with a notation identifying the fingerprint and the reason why the right index fingerprint was unavailable; and

(B) notwithstanding the other provisions of this Subsection (1), an electronic legible fingerprint is not required to be documented on the ticket;

(f) the amount loaned on, paid for, or value for trade-in of each article of property;

(g) the full name of the individual conducting the pawn transaction or secondhand merchandise transaction on behalf of the pawn or secondhand business or the initials or a unique identifying number of the individual, if the pawn or secondhand business maintains a record of the initials or unique identifying number of the individual; and

(h) an accurate description of each article of property, with available identifying marks, including:

(i)

(A) names, brand names, numbers, serial numbers, model numbers, IMEI numbers, color, manufacturers' names, and size;

(B) metallic composition, and any jewels, stones, or glass;

(D) the weight of the property, if the payment is based on weight;

(E) any other unique identifying feature; and

(F) gold content, if indicated; or

(ii) if multiple articles of property of a similar nature are delivered together in one transaction and the articles of property do not bear serial or model numbers and do not include precious metals or gemstones, such as musical or video recordings, books, or hand tools, the description of the articles is adequate if it includes the quantity of the articles and a description of the type of articles delivered.

(2)

(a) A pawn or secondhand business may not accept property if, upon inspection, it is apparent that:

(i) a serial number or another form of indicia of ownership has been removed, altered, defaced, or obliterated;

(ii) the property is not a numismatic item and has indicia of being new, but is not accompanied by a written receipt or other satisfactory proof of ownership other than the seller's own statement; or

(iii) except as provided in Subsection 13-32a-103.1(3), the property is a gift card, transaction card, or other physical or digital card or certificate evidencing store credit.

(b) A pawn or secondhand business is not subject to Subsection (2)(a)(ii) if the pawn or secondhand business is the original seller of the property and is accepting a return of the property as provided by the pawn or secondhand business' established return policy.

(c) Property is presumed to have had indicia of being new at the time of a transaction if the property is subsequently advertised by the pawn or secondhand business as being new.

(3)

(a) An individual may not pawn or sell any property to a business regulated under this chapter if the property is subject to being turned over to a law enforcement agency in accordance with Title 77, Chapter 11d, Lost or Mislaid Property.

(b) If an individual attempts to sell or pawn property to a business regulated under this chapter and the employee or owner of the business knows or has reason to know that the property is subject to Title 77, Chapter 11d, Lost or Mislaid Property, the employee or owner shall advise the individual of the requirements of Title 77, Chapter 11d, Lost or Mislaid Property, and may not receive the property in pawn or sale.

(4) A coin dealer is subject to Section 13-32a-104.5 and not subject to this section.

(5) An automated recyling kiosk operator is subject to Section 13-32a-104.6 and is not subject to this section.

(6) A catalytic converter purchaser is subject to Section 13-32a-104.7 and is not subject to this section.

(7) A violation of this section is a class B misdemeanor and is also subject to civil penalties under Section 13-32a-110.

(8) The division shall establish standards and criteria for fingerprint legibility by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(9)

(a) As used in this Subsection (9), "jewelry" means:

(i) any jewelry purchased by the pawn or secondhand business, including scrap jewelry and watches; or

(ii) any jewelry pawned to a pawnbroker and the contract period between the pawnbroker and the pledgor has expired, including scrap jewelry and watches.

(b) On and after January 1, 2020, a pawn or secondhand business shall obtain:

(i) a color digital photograph clearly and accurately depicting:

(A) each item of jewelry; and

(B) if an item of jewelry has one or more engravings, an additional color digital photograph specifically depicting any engraving; and

(ii) a color digital photograph of an item that bears an identifying mark, including:

(A) a serial number, engraving, owner label, or similar identifying mark; and

(B) an additional photograph that clearly depicts the identifying mark described in Subsection (9)(b)(ii)(A).

§ 13-32a-104.5 Database information from coin dealers -- New and prior customers.

(1) A coin dealer shall maintain a ticket under this section for each secondhand merchandise transaction of a numismatic item or precious metal with an individual with whom the coin dealer has not previously conducted a secondhand merchandise transaction.

(2) For a secondhand merchandise transaction under Subsection (1), the coin dealer or the coin dealer's employee shall document the following information on the ticket regarding every numismatic item or precious metal transaction:

(a) the date and time of the transaction;

(b) the ticket number;

(i) the individual's full name and date of birth as they appear on the individual's identification and the individual's residence address and telephone number;

(ii) the unique number and type of identification presented to the coin dealer;

(iii) the individual's signature; and

(iv)

(A) subject to any rule made under Subsection (6), an electronic or tangible legible fingerprint of the individual's right index finger, or if the right index finger cannot be fingerprinted, a legible fingerprint of the individual with a notation identifying the fingerprint and the reason why a right index fingerprint is unavailable; and

(B) notwithstanding the other provisions of this Subsection (2), an electronic legible fingerprint is not required to be documented on the ticket;

(d) the amount paid for or trade-in value of each numismatic item or precious metal;

(e) the full name of the individual conducting the transaction on behalf of the pawn or secondhand business or the initials or unique identifying number, if the coin dealer maintains a record of the initials or unique identifying number of the individual; and

(f) an accurate description of each numismatic item or precious metal, with available identifying marks, including:

(i) type and name of numismatic item or type and content of precious metal;

(ii) metallic composition, and any jewels, stones, or glass;

(iii) any other marks of identification or indicia of ownership on the article;

(iv) the weight of the article, if the payment is based on weight;

(v) any other unique identifying feature; and

(vi) metallic content.

(3)

(a) If multiple numismatic items or precious metals of the same type in an amount that would make reporting of each item unreasonably difficult are part of a single sale transaction, a coin dealer shall document the property as a grouping.

(b) The description for a grouping described in Subsection (3)(a) must be an accurate description, with available identifying marks, including:

(i) type and name of numismatic items or type and content of precious metal;

(ii) metallic composition, and any jewels, stones, or glass;

(iii) any other marks of identification or indicia of ownership on the article;

(iv) the weight of the articles, if the payment is based on the weight;

(v) any other unique identifying features; and

(vi) metallic content.

(4) If the individual selling a numismatic item or precious metal to the coin dealer has an established previous transaction history with the coin dealer, the coin dealer or the coin dealer's employee shall document the following information on the ticket:

(a) the date and time of the transaction and the ticket number;

(b) indication that the coin dealer has conducted business with the seller previously;

(c) the full name of the individual conducting the transaction on behalf of the pawn or secondhand business or the initials or unique identifying number, if the coin dealer maintains a record of the initials or unique identifying number of the individual;

(d) the initials of the seller's legal name, including any middle name;

(e) form of identification presented by the seller at the time of sale;

(f) the last four digits of the unique identifying number on the form of identification;

(g) the individual's signature;

(h) the amount paid for or trade-in value of each numismatic item or precious metal; and

(i) the identifying information under Subsection (2)(f) and under Subsection (3) as applicable.

(5) A coin dealer may not accept any numismatic item or precious metal if, upon inspection, it is apparent that serial numbers or identifying characteristics have been intentionally defaced on that numismatic item or precious metal.

(6) The division shall establish standards and criteria for fingerprint legibility by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

§ 13-32a-104.6 Database information from automated recycling kiosk operators.

(1) An automated recycling kiosk operator shall generate a ticket under this section for each secondhand merchandise transaction in which the automated recycling kiosk operator engages. An automated recycling kiosk operator shall document on the ticket the following information:

(a) the date and time of the transaction;

(b) the ticket number;

(d) the following information regarding the individual who sells the wireless communication device:

(i) the individual's full name and date of birth as they appear on the individual's identification and the individual's residence address and telephone number;

(ii) the unique number and type of identification presented to the automated recycling kiosk;

(iii) the individual's signature;

(iv) a color digital photograph of the individual; and

(v)

(A) subject to rules made under Subsection (3), an electronic or tangible legible fingerprint of the individual's right index finger, or if the right index finger cannot be fingerprinted, a legible fingerprint of the individual with a notation identifying the fingerprint and the reason why the right index fingerprint was unavailable; and

(B) notwithstanding the other provisions of this Subsection (1), an electronic legible fingerprint is not required to be documented on the ticket;

(e) the full name of the individual conducting the secondhand merchandise transaction on behalf of the automated recycling kiosk operator or the initials or a unique identifying number of the individual, if the automated recycling kiosk maintains a record of the initials or unique identifying number of the individual;

(f) the amount paid for each wireless communication device; and

(g) subject to Subsection (4), an accurate description of each wireless communication device, including any:

(i) names, brand names, numbers, serial numbers, IMEI numbers, model numbers, color, manufacturers' names, and size;

(ii) other marks of identification or indicia of ownership on the wireless communication device; and

(iii) other unique identifying characteristics.

(2) A violation of this section is a class B misdemeanor and is also subject to civil penalties under Section 13-32a-110.

(3) The division shall establish standards and criteria for fingerprint legibility by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(4) If an automated recycling kiosk cannot electronically extract a wireless communication device's serial number or IMEI number from the wireless communication device at the time of the transaction:

(a) the automated recycling kiosk operator may not pay the seller more than $25 for the wireless communication device;

(b) the automated recycling kiosk operator shall engage in and document reasonable efforts to obtain and upload to the central database the wireless communication device's serial number and IMEI number within 15 calendar days of the date of the transaction; and

(c) the central database information for the wireless communication device may not be considered submitted for purposes of Subsection 13-32a-109(1)(b) until the earlier of when:

(i) the wireless communication device's serial number and IMEI number have both been uploaded to the central database; or

(ii) more than 45 calendar days have passed since the date of the transaction.

(5) An automated recycling kiosk operator may not purchase more than 10 wireless communication devices with serial numbers or IMEI numbers that cannot be electronically extracted by an automated recycling kiosk at the time of the transaction from the same individual during the same calendar year.

(6) An automated recycling kiosk operator may only purchase a wireless communication device with serial numbers or IMEI numbers that cannot be electronically extracted by an automated recycling kiosk at the time of the transaction in a single-item transaction.

§ 13-32a-104.7 Database information from catalytic converter purchasers -- Penalties.

(1) As soon as practicable, but no later than January 1, 2023, a catalytic converter purchaser shall document information for each catalytic converter purchase as required under this section and upload the information to the central database under Section 13-32a-106.

(2) A catalytic converter purchaser shall document the following information regarding a catalytic converter purchase:

(a) the date and time of the catalytic converter purchase;

(b) the following information regarding the individual selling the catalytic converter:

(i) the individual's:

(A) full name and date of birth as they appear on the individual's identification;

(B) residence address;

(D) signature on a certificate stating that the individual has the legal right to sell the catalytic converter;

(ii) the type of identification the individual presents under Subsection (2)(b)(i)(A) and the unique number on the identification;

(iii) a color digital photograph or still video of the individual taken at the time of the sale, or a clearly legible photocopy of the individual's identification; and

(iv) except as provided in Subsection (3), an electronic or tangible legible fingerprint of the individual's right index finger, or if the right index finger cannot be fingerprinted, a legible fingerprint of the individual with a notation identifying the finger fingerprinted and the reason why the right index fingerprint is unavailable;

(d) the full name of the individual conducting the purchase on behalf of the catalytic converter purchaser or the initials or unique identifying employee number, if the catalytic converter purchaser maintains a record of the initials or unique identifying employee number of the individual;

(e) an accurate description of the catalytic converter, with available identifying marks, including:

(i) if available, the name, brand name, number, serial number, model number, manufacturer information, and size of the catalytic converter;

(ii) any marks of identification or indicia of ownership on the catalytic converter;

(iii) the weight of the catalytic converter, if the payment is based on weight; and

(iv) other unique identifying characteristics of the catalytic converter; and

(f) a color, digital photograph of the catalytic converter.

(3) If the individual selling a catalytic converter to the catalytic converter purchaser in a catalytic converter purchase previously has sold one or more catalytic converters to the catalytic converter purchaser, the catalytic converter purchaser is not required to obtain the fingerprint under Subsection (2)(b)(iv).

(4) A catalytic converter purchaser may not accept a catalytic converter if, upon inspection, it is apparent that the serial number or identifying characteristics have been intentionally defaced on the catalytic converter.

(5) The division shall establish standards and criteria for fingerprint legibility under Subsection (2)(b)(iv) by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(6) A violation of this section is a class B misdemeanor and is also subject to civil penalties under Section 13-32a-110.

(7) A dealer, as defined in Section 76-6-1402, that makes a catalytic converter purchase under this section shall comply with Title 76, Chapter 6, Part 14, Regulation of Metal Dealers.

§ 13-32a-105 Central database -- Implementation -- Notification.

(1) In accordance with this section, there is created a central database as a statewide repository for:

(a) information that a pawn or secondhand business or a catalytic converter purchaser is required to submit in accordance with this chapter; and

(b) the use of a participating law enforcement agency that meets the requirements of Section 13-32a-111.

(2) The division shall:

(a) establish and operate the central database; or

(b) contract with a third party to establish and operate the central database in accordance with Title 63G, Chapter 6a, Utah Procurement Code.

(3) Funding for the creation and operation of the central database shall be from the account.

(4)

(a) An entity that operates the central database may not hold any financial or operating interest in a pawn or secondhand business or catalytic converter purchaser in any state.

(b) The division shall verify before a bid is awarded that the selected entity meets the requirements of Subsection (4)(a).

(c) If any entity is awarded a bid under this Subsection (4) and is later found to hold any interest in violation of Subsection (4)(a), the award is subject to being opened again for request for proposal.

(5)

(a) Beginning January 1, 2020, upon a query by a pawnbroker, the central database shall provide notification of the volume of business an individual seeking to enter into a transaction with the pawnbroker has engaged in with any pawnbroker regulated by this chapter within the previous 30 days based on the records in the central database at the time of the query.

(b) Information entered in the central database shall be retained for five years and shall then be deleted.

(6) Upon request, the entity responsible for establishing and operating the central database under Subsection (2) shall provide technical information and advice for an information technology representative of a pawn or secondhand business or catalytic converter purchaser that is required to provide information to the central database.

§ 13-32a-106 Transaction information provided to the central database -- Protected information.

(1)

(a) Except as provided in Subsection 13-32a-104.6(4), a pawn or secondhand business or catalytic converter purchaser shall transmit electronically in a compatible format information required to be recorded under Sections 13-32a-104, 13-32a-104.5, 13-32a-104.6, and 13-32a-104.7 that is capable of being transmitted electronically to the central database within 24 hours after entering into the transaction.

(b) The division may specify by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the information capable of being transmitted electronically under Subsection (1)(a).

(2)

(a) A pawn or secondhand business shall maintain tickets generated by the pawn or secondhand business and shall maintain the tickets in a manner so that the tickets are available to local law enforcement agencies as required by this chapter and as requested by any law enforcement agency as part of an investigation or reasonable random inspection conducted under this chapter.

(b)

(i) A catalytic converter purchaser is not required to generate or maintain a ticket for a catalytic converter purchase.

(ii) A catalytic converter purchaser shall make the information documented under Section 13-32a-104.7 available to a local law enforcement agency in accordance with this chapter and upon request by a law enforcement agency as part of an investigation or reasonable random inspection conducted under this chapter.

(3)

(a) If a pawn or secondhand business or catalytic converter purchaser experiences a computer or electronic malfunction that affects the business's or purchaser's ability to report transactions as required in Subsection (1), the pawn or secondhand business or catalytic converter purchaser shall immediately notify the division and the local law enforcement agency of the malfunction.

(b) The pawn or secondhand business or catalytic converter purchaser shall solve the malfunction within three business days after the day on which the business or purchaser experiences the malfunction or notify the division and the local law enforcement agency under Subsection (4).

(4) If the computer or electronic malfunction under Subsection (3) cannot be solved within three business days after the day on which the pawn or secondhand business or catalytic converter purchaser experiences the malfunction, the pawn or secondhand business or catalytic converter purchaser shall notify the division and the local law enforcement agency of the reasons for the delay and provide documentation from a reputable computer maintenance company of the reasons why the computer or electronic malfunction cannot be solved within three business days.

(5) A computer or electronic malfunction does not suspend the obligation of the pawn or secondhand business or catalytic converter purchaser to comply with all other provisions of this chapter.

(6) During the malfunction under Subsections (3) and (4), the pawn or secondhand business or catalytic converter purchaser shall:

(a) arrange with the local law enforcement agency a mutually acceptable alternative method by which the pawn or secondhand business or catalytic converter purchaser provides the required information to the local law enforcement agency; and

(b) a pawn or secondhand business or catalytic converter purchaser shall maintain the tickets, if applicable, and other related information required under this chapter in a written form.

(7) A pawn or secondhand business or catalytic converter purchaser that violates the electronic transaction reporting requirement under this section is subject to an administrative fine of $50 per day if:

(a) the pawn or secondhand business or catalytic converter purchaser is unable to submit the information electronically due to a computer or electronic malfunction;

(b) the three business day period under Subsection (3) has expired; and

(c) the pawn or secondhand business or catalytic converter purchaser has not provided documentation regarding the pawn or secondhand business's or catalytic converter purchaser's inability to solve the malfunction as required under Subsection (4).

(8) A pawn or secondhand business or catalytic converter purchaser is not responsible for a delay in transmission of information that results from a malfunction in the central database.

(9) A violation of this section is a class B misdemeanor and is also subject to civil penalties under Section 13-32a-110.

§ 13-32a-106.5 Confidentiality of pawn and purchase transactions.

(1) A ticket, copy of a ticket, information from a ticket, or information required under Section 13-32a-104.7 delivered to a local law enforcement agency or transmitted to the central database under Section 13-32a-106 is a protected record under Section 63G-2-305.

(2) In addition to use by the issuing pawn or secondhand business or catalytic converter purchaser, the ticket, copy of a ticket, information from a ticket, or information required under Section 13-32a-104.7 may be used only by a law enforcement agency and the division and only for the law enforcement and administrative enforcement purposes of:

(a) investigating possible criminal conduct involving the property delivered:

(i) to the pawn or secondhand business in a pawn transaction or secondhand merchandise transaction; or

(ii) to a catalytic converter purchaser in a catalytic converter purchase;

(b) investigating a possible violation of the record keeping or reporting requirements of this chapter when the local law enforcement agency or the division, based on a review of the records and information received, has reason to believe that a violation has occurred;

(c) responding to an inquiry from an insurance company investigating a claim for physical loss of described property by searching the central database to determine if property matching the description has been delivered to a pawn or secondhand business or catalytic converter purchaser by another person in a pawn transaction, secondhand merchandise purchase transaction, or catalytic converter purchase and if so, obtaining from the central database:

(i) a description of the property;

(ii) the name and address of the pawn or secondhand business or catalytic converter purchaser that received the property; and

(iii) the name, address, and date of birth of the conveying individual; and

(d) taking enforcement action under Section 13-2-106 against a pawn or secondhand business or catalytic converter purchaser.

(3) An insurance company making a request under Subsection (2)(c) shall provide the police report case number concerning the described property.

(4)

(a) A person may not knowingly and intentionally use, release, publish, or otherwise make available to any person any information obtained from the central database for any purpose other than those specified in Subsection (2).

(b) Each separate violation of Subsection (4)(a) is a class B misdemeanor.

§ 13-32a-108 Retention of records -- Reasonable inspection.

(1) A pawn or secondhand business or local law enforcement agency, whichever has custody of a ticket or copy of a ticket, shall retain the ticket or copy for no less than three years after the date of the transaction.

(2)

(a) A law enforcement agency or the division may conduct random reasonable inspections of pawn or secondhand businesses or catalytic converter purchasers for the purpose of monitoring compliance with the requirements of this chapter.

(b) A law enforcement agency or the division shall conduct an inspection under Subsection (2)(a) during the regular business hours of the pawn or secondhand business or catalytic converter purchaser.

(3) A violation of this section is a class B misdemeanor and is also subject to civil penalties under Section 13-32a-110.

§ 13-32a-109 Holding period for property -- Return of property -- Penalty.

(1)

(a) A pawnbroker may sell property pawned to the pawnbroker if:

(i) 15 calendar days have passed after the day on which the pawnbroker submits the information and any required photograph to the central database;

(ii) the contract period between the pawnbroker and the pledgor expires; and

(iii) the pawnbroker has complied with Sections 13-32a-104 and 13-32a-106.

(b) If property, including scrap jewelry, is purchased by a pawn or secondhand business or catalytic converter purchaser, the pawn or secondhand business or catalytic converter purchaser may sell the property if the pawn or secondhand business or catalytic converter purchaser has held the property for 15 calendar days after the day on which the pawn or secondhand business or catalytic converter purchaser submits the information to the central database, and complied with Sections 13-32a-104, 13-32a-104.6, 13-32a-104.7, and 13-32a-106, except that the pawn or secondhand business is not required to hold precious metals or numismatic items under this Subsection (1)(b).

(c)

(i) This Subsection (1) does not preclude a law enforcement agency from requiring a pawn or secondhand business or catalytic converter purchaser to hold property if necessary in the course of an investigation.

(ii) If the property is pawned, the law enforcement agency may require the property be held beyond the terms of the contract between the pledgor and the pawnbroker.

(iii) If the property is sold to the pawn or secondhand business or catalytic converter purchaser, the law enforcement agency may require the property be held if the pawn or secondhand business or catalytic converter purchaser has not sold the article.

(d) If the law enforcement agency requesting a hold on property under this Subsection (1) is not the local law enforcement agency, the requesting law enforcement agency shall notify the local law enforcement agency of the request and also the pawn or secondhand business or catalytic converter purchaser.

(2) If a law enforcement agency requires the pawn or secondhand business or catalytic converter purchaser to hold property as part of an investigation, the law enforcement agency shall provide to the pawn or secondhand business or catalytic converter purchaser a hold form issued by the law enforcement agency, that:

(a) states the active case number;

(b) confirms the date of the hold request and the property to be held; and

(c) facilitates the ability of the pawn or secondhand business or catalytic converter purchaser to track the property when the prosecution takes over the case.

(3) If property is not seized by a law enforcement agency that has placed a hold on the property, the property shall remain in the custody of the pawn or secondhand business or catalytic converter purchaser until further disposition by the law enforcement agency, and in accordance with this chapter.

(4)

(a) The initial hold by a law enforcement agency is for a period of 90 days.

(b) If the property is not seized by the law enforcement agency, the property shall remain in the custody of the pawn or secondhand business or catalytic converter purchaser and is subject to the hold unless exigent circumstances require the property to be seized by the law enforcement agency.

(5)

(a) A law enforcement agency may extend any hold for up to an additional 90 days if circumstances require the extension.

(b) If there is an extension of a hold under Subsection (5)(a), the requesting law enforcement agency shall notify the pawn or secondhand business or catalytic converter purchaser that is subject to the hold before the expiration of the initial 90 days.

(c) A law enforcement agency may not hold an item for more than the 180 days allowed under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.

(6) A hold on property under Subsection (2) takes precedence over any request to claim or purchase the property subject to the hold.

(7) If an original victim who has complied with Section 13-32a-115 has not been identified and the hold or seizure of the property is terminated, the law enforcement agency requiring the hold or seizure shall within 15 business days after the day on which the termination occurs:

(a) notify the pawn or secondhand business or catalytic converter purchaser in writing that the hold or seizure has been terminated;

(b) return the property subject to the seizure to the pawn or secondhand business or catalytic converter purchaser; or

(c) if the property is not returned to the pawn or secondhand business or catalytic converter purchaser, advise the pawn or secondhand business or catalytic converter purchaser either in writing or electronically of the specific alternative disposition of the property.

(8)

(a) If the original victim who has complied with Section 13-32a-115 has been identified and the hold or seizure of property is terminated, the law enforcement agency requiring the hold or seizure shall:

(i) document the original victim who has positively identified the property; and

(ii) provide the documented information concerning the original victim to the prosecuting agency to determine whether continued possession of the property is necessary for purposes of prosecution in accordance with Section 77-11a-301.

(b) If the prosecuting agency determines that continued possession of the property is not necessary for purposes of prosecution, the prosecuting agency shall provide a written or electronic notification to the law enforcement agency that authorizes the return of the property to an original victim who has complied with Section 13-32a-115.

(c)

(i) A law enforcement agency shall promptly provide notice to the pawn or secondhand business or catalytic converter purchaser of the authorized return of the property under this Subsection (8).

(ii) The notice shall identify the original victim, advise the pawn or secondhand business or catalytic converter purchaser that the original victim has identified the property, and direct the pawn or secondhand business or catalytic converter purchaser to release the property to the original victim at no cost to the original victim.

(iii) If the property was seized, the notice shall advise that the property will be returned to the original victim within 15 days after the day on which the pawn or secondhand business or catalytic converter purchaser receives the notice, except as provided under Subsection (8)(d).

(d) The pawn or secondhand business or catalytic converter purchaser shall release property under Subsection (8)(c) unless within 15 days after the day on which the notice is received the pawn or secondhand business or catalytic converter purchaser complies with Section 13-32a-116.5.

(9)

(a) If the law enforcement agency does not notify the pawn or secondhand business or catalytic converter purchaser that a hold on the property has expired, the pawn or secondhand business or catalytic converter purchaser shall send a letter by registered or certified mail to the law enforcement agency that ordered the hold and inform the agency that the holding period has expired.

(b) The law enforcement agency shall respond within 30 days by:

(i) confirming that the hold period has expired and that the pawn or secondhand business or catalytic converter purchaser may manage the property as if acquired in the ordinary course of business; or

(ii) providing written notice to the pawn or secondhand business or catalytic converter purchaser that a court order has continued the period of time for which the item shall be held.

(10) The written notice under Subsection (9)(b)(ii) is considered provided when:

(a) personally delivered to the pawn or secondhand business or catalytic converter purchaser with a signed receipt of delivery;

(b) delivered to the pawn or secondhand business or catalytic converter purchaser by registered or certified mail; or

(c) delivered by any other means with the mutual assent of the law enforcement agency and the pawn or secondhand business or catalytic converter purchaser.

(11) If the law enforcement agency does not respond within 30 days under Subsection (9), the pawn or secondhand business or catalytic converter purchaser may manage the property as if acquired in the ordinary course of business.

(12) A violation of this section is a class B misdemeanor and is also subject to civil penalties under Section 13-32a-110.

§ 13-32a-109.5 Seizure of property -- Notification to pawn or secondhand business or catalytic converter purchaser.

If a law enforcement agency determines seizure of property pawned or sold to a pawn or secondhand business or catalytic converter purchaser is necessary under this chapter during the course of a criminal investigation, in addition to the hold provisions under Section 13-32a-109, the law enforcement agency shall:

(1) notify the pawn or secondhand business or catalytic converter purchaser of the specific property to be seized; and

(2) issue to the pawn or secondhand business or catalytic converter purchaser a seizure form approved by the division and that:

(a) provides the active case number related to the property to be seized;

(b) provides the date of the seizure request;

(d) describes the property to be seized;

(e) states each reason the property is necessary during the course of a criminal investigation; and

(f) includes any information that facilitates the ability of the pawn or secondhand business or catalytic converter purchaser to track the property when the prosecution agency takes over the case.

§ 13-32a-110 Administrative or civil penalties -- Criminal prosecution.

(1) A violation of any of the following sections is subject to an administrative or civil penalty of not more than $500:

(a) Section 13-32a-104, tickets required to be maintained;

(b) Section 13-32a-104.5, database information from coin dealers;

(d) Section 13-32a-104.7, database information from catalytic converter purchasers;

(e) Section 13-32a-106, transaction information provided to the central database;

(f) Section 13-32a-108, retention of records;

(g) Section 13-32a-109, holding period for property;

(h) Section 13-32a-110.5, transactions with certain individuals prohibited;

(i) Section 13-32a-111, fees to fund account; or

(j) Section 13-32a-112.1, annual training.

(2) This section does not prohibit civil action by a governmental entity regarding the operation or license of a pawn or secondhand business or catalytic converter purchaser.

(3) The imposition of civil penalties under this section does not prohibit criminal prosecution by a governmental entity for criminal violations of this chapter.

§ 13-32a-110.5 Transactions with certain individuals prohibited.

A pawn or secondhand business or catalytic converter purchaser may not engage in a pawn transaction or secondhand merchandise transaction or catalytic converter purchase with an individual who:

(1) is younger than 18 years old; or

(2) appears to be under the influence of alcohol or a controlled substance.

§ 13-32a-111 Fees to fund account.

(1)

(a) A pawn or secondhand business or catalytic converter purchaser in operation shall pay an annual fee of no more than $500, set in accordance with Section 63J-1-504.

(b) A law enforcement agency within Utah that participates in the use of the central database shall pay an annual fee set in accordance with Section 63J-1-504.

(c) A law enforcement agency outside Utah that requests access to the central database shall pay an annual fee set in accordance with Section 63J-1-504.

(2) A fee paid under Subsection (1) shall be paid annually to the division on or before January 31.

(3) A fee received by the division under this section shall be deposited into the account.

(4) The division may only increase fees for a pawn or secondhand business or catalytic converter purchaser under Section 63J-1-504.

§ 13-32a-112.5 Temporary businesses subject to chapter.

A pawn or secondhand business or catalytic converter purchaser that operates on a temporary basis or from a location that is not a permanent retail location:

(1) shall comply with this chapter; and

(2) is subject to enforcement of this chapter.

§ 13-32a-113 Pawnbroker, Secondhand Merchandise, and Catalytic Converter Operations Restricted Account.

(1) There is created within the General Fund a restricted account known as the "Pawnbroker, Secondhand Merchandise, and Catalytic Converter Operations Restricted Account."

(2)

(a) The account shall be funded from fees and administrative and civil fines imposed and collected under Sections 13-32a-106, 13-32a-110, and 13-32a-111.

(b) The fees and administrative and civil fines shall be paid to the division, which shall deposit them in the account.

(i) the costs of providing training required under this chapter;

(ii) the costs of the central database created in Section 13-32a-105; and

(iii) the division's costs of administering this chapter.

§ 13-32a-114 Preemption of local ordinances -- Exceptions.

(1) This chapter preempts town, city, county, and other local ordinances governing pawn or secondhand businesses or catalytic converter purchasers, if the ordinances are more restrictive than the provisions of this chapter or are not consistent with this chapter.

(2) Subsection (1) does not preclude a city, county, or other local governmental unit from:

(a) enacting or enforcing local ordinances concerning public health, safety, or welfare, if the ordinances are uniform and equal in application to pawn and secondhand businesses or catalytic converter purchasers and other retail businesses or activities;

(b) requiring a pawn or secondhand business or catalytic converter purchaser to obtain and maintain a business license and providing for revocation of the business license based on multiple violations of Section 76-6-408; or

(c) enacting zoning ordinances that restrict areas where pawn or secondhand businesses or catalytic converter purchasers and other retail businesses or activities can be located.

§ 13-32a-115 Criminal investigation -- Prosecution -- Property disposition.

(1) If the property pawned or sold to a pawn or secondhand business or catalytic converter purchaser is the subject of a criminal investigation and a hold has been placed on the property under Section 13-32a-109, the original victim shall do the following to establish a claim:

(a) positively identify to law enforcement the property stolen or lost;

(b) if a police report has not already been filed for the original theft or loss of property, file a police report, and provide for the law enforcement agency information surrounding the original theft or loss of property; and

(i) claims ownership of the property;

(ii) references the original theft or loss; and

(iii) identifies the perpetrator if known.

(2) The pawn or secondhand business or catalytic converter purchaser shall retain possession of any property subject to a hold until a criminal prosecution is commenced relating to the property for which the hold was placed unless:

(a) during the course of a criminal investigation the actual physical possession by law enforcement of the property purchased or pawned is essential for the purpose of forensic testing of the property, or if the property contains unique or sensitive personal identifying information; or

(b) an agreement between the original victim and the pawn or secondhand business or catalytic converter purchaser to return the property is reached.

(3)

(a) Upon the commencement of a criminal prosecution, any property subject to a hold for investigation under this chapter may be seized by the law enforcement agency that requested the hold.

(b) Subsequent disposition of the property shall be consistent with this chapter.

(4) At all times during the course of a criminal investigation and subsequent prosecution, the property subject to a law enforcement hold shall be kept secure by the pawn or secondhand business or catalytic converter purchaser subject to the hold unless the pawned or purchased property has been seized by the law enforcement agency pursuant to Section 13-32a-109.5.

§ 13-32a-116 Property disposition -- Property subject to prosecution -- Property not used as evidence.

When property that is pawned or sold to a pawn or secondhand business or catalytic converter purchaser is the subject of a criminal proceeding, and has been seized by law enforcement pursuant to this chapter, the prosecuting agency shall notify the seizing agency, the original victim, and the pawn or secondhand business or catalytic converter purchaser in compliance with Subsection 13-32a-109(8), if the prosecuting agency determines the article is no longer needed as evidence pending resolution of the criminal case.

§ 13-32a-116.5 Contested disposition of property - Procedure.

(1) If a pawn or secondhand business or catalytic converter purchaser receives notice from a law enforcement agency under Section 13-32a-109 that property that is the subject of a hold or seizure shall be returned to an identified original victim, the pawn or secondhand business or catalytic converter purchaser may contest the determination and seek a specific alternative disposition if within 15 business days after the day on which the pawn or secondhand business or catalytic converter purchaser receives the notice:

(a) the pawn or secondhand business or catalytic converter purchaser gives notice to the identified original victim, by certified mail, that the pawn or secondhand business or catalytic converter purchaser contests the determination to return the property to the original victim; and

(b) the pawn or secondhand business or catalytic converter purchaser files a petition in a court having jurisdiction over the matter to determine rightful ownership of the property as provided in Section 77-11a-305.

(2) A pawn or secondhand business or catalytic converter purchaser is guilty of a class B misdemeanor if the pawn or secondhand business or catalytic converter purchaser:

(a) holds or sells property in violation of a notification from a law enforcement agency that the property is to be returned to an original victim; and

(b) does not comply with the requirements of this section within the time periods specified.

§ 13-32a-118 Payment limitation for catalytic converter purchases.

(1) A catalytic converter purchaser, when making a catalytic converter purchase, may not pay the seller for the catalytic converter with cash or a gift card.

(2) Subsection (1) does not apply to a catalytic converter purchase in which the amount paid to the seller is under $100.

Chapter 34 Utah Postsecondary School and State Authorization Act

Part 1 General Provisions

§ 13-34-101 Definitions.

As used in this chapter:

(1) "Accredited postsecondary school" means a postsecondary school that is accredited by an accrediting agency.

(2) "Accrediting agency" means a private educational association that:

(a) is recognized by the United States Department of Education;

(b) develops education criteria; and

(3) "Agent" means a person who:

(a) owns an interest in a postsecondary school;

(b) is employed by a postsecondary school;

(d) offers to award an educational credential on behalf of a postsecondary school; or

(e) holds oneself out to a Utah resident as representing a postsecondary school for any purpose.

(4) "Apprentice" means the same as that term is defined in Section 35A-6-102.

(5) "Apprenticeship" means the same as that term is defined in Section 35A-6-102.

(6) "Distance postsecondary education" means the same as that term is defined in 20 U.S.C. Sec. 1003(7).

(7) "Division" means the Division of Consumer Protection.

(8) "Educational credential" means a degree, diploma, certificate, transcript, report, document, letter of designation, mark, or series of letters, numbers, or words that represent enrollment, attendance, or satisfactory completion of the requirements or prerequisites of an educational program.

(9) "Longstanding nonprofit accredited postsecondary school" means an accredited postsecondary school that:

(a) is a nonprofit organization; and

(b) has operated continuously as a nonprofit for at least 20 years.

(10) "Nonprofit organization" means a nonprofit corporation or foreign nonprofit corporation as those terms are defined in Section 16-6a-102.

(11) "Operate" means to:

(a) maintain a physical presence in the state; or

(b) provide postsecondary education to an individual who resides in the state.

(12) "Physical presence" means:

(a) to maintain in the state a physical location where a student receives postsecondary education; or

(b) to provide to a student distance postsecondary education from a location in this state.

(13)

(a) "Postsecondary education" means education or educational services offered primarily to an individual who:

(i) has completed or terminated their secondary or high school education; or

(ii) is beyond the age of compulsory school attendance.

(b) "Postsecondary education" does not include instruction at or below the 12th grade level.

(14) "Postsecondary school" means a person that offers postsecondary education:

(a) in exchange for payment of tuition, fees, or other consideration; and

(b) for the purpose of attaining educational, professional, or vocational objectives.

(15) "Principal" means a postsecondary school's owner, officer, director, trustee, or administrator.

(16) "Public postsecondary school" means a postsecondary school that is:

(a)

(i) an institution listed in Section 53H-1-102; or

(ii) established by another state or other governmental entity; and

(b) substantially supported with government funds.

(17) "Reciprocity agreement" means an agreement the division enters into with another state in accordance with Section 13-34-303.

(18)

(a) "Registration certificate" means approval from the division to operate a postsecondary school in accordance with this chapter, and with rules adopted in accordance with this chapter.

(b) "Registration certificate" does not mean an approval or endorsement of the postsecondary school by the division or the state.

(19) "Registration statement" means an application and accompanying documentation required under this chapter for:

(a) a registration certificate; or

(b) a state authorization certificate.

(20)

(a) "State authorization certificate" means a certificate that the division issues to an accredited postsecondary school in accordance with Section 13-34-302.

(b) "State authorization certificate" does not mean an approval or endorsement of the accredited postsecondary school by the division or the state.

(21) "Student" means:

(a) a person who pays or is obligated to pay a postsecondary school for postsecondary education; or

(b) a legal guardian of a person described in Subsection (21)(a).

§ 13-34-102 Division responsibilities.

(1) The division shall:

(a) exercise the division's enforcement powers in accordance with Chapter 2, Division of Consumer Protection, and this chapter;

(b) make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to:

(i) establish the content of a registration statement required under this chapter;

(ii) establish a process for reviewing and responding to complaints the division receives in accordance with this chapter; and

(iii) establish a fee in accordance with Section 63J-1-504 for filing a registration statement;

(c) issue a registration certificate or state authorization certificate to a postsecondary school upon the division's receipt and approval of a qualifying registration statement;

(d) maintain and publish a list of postsecondary schools to which the division has issued a:

(i) registration certificate; or

(ii) state authorization certificate; and

(e) deposit fees established in accordance with Subsection (1)(b)(iii), and collected in accordance with this chapter into the Commerce Service Account created in Section 13-1-2.

(2) The division may:

(a) accept a copy of an educational credential from a postsecondary school that ceases operation;

(b) charge a reasonable fee for providing a copy of an educational credential;

(c) upon request, provide a letter confirming that a postsecondary school is exempt from registration in accordance with Section 13-34-111; and

(d) negotiate and enter into an interstate reciprocity agreement with another state, if in the judgment of the division, the agreement is consistent with the purposes of this chapter.

§ 13-34-103 Rulemaking authority.

In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division may make rules:

(1) establishing the form and content of:

(a) a registration statement; and

(b) a surety bond, certificate of deposit, or other proof of financial viability required under Section 13-34-202;

(2) specifying the information a postsecondary school is required to provide with a registration statement, which may vary based upon factors including:

(a) the certificate the postsecondary school seeks;

(b) whether the postsecondary school is an accredited postsecondary school; and

(3) establishing the amount of a surety bond or certificate of deposit required under Section 13-34-202, not to exceed an amount equal to the tuition and fees a postsecondary school anticipates receiving during a school year;

(4) providing for the execution and cancellation of the surety bond or certificate of deposit a postsecondary school obtains in accordance with Section 13-34-202;

(5) establishing the amount of money a school may charge a student in a 12 month period to qualify for an exemption in accordance with Subsection 13-34-111(3)(d)(i)(C);

(6) specifying acts or practices that:

(a) are prohibited in accordance with Section 13-34-108; and

(b) a postsecondary school that intends to cease operating is required to carry out;

(7) specifying student outcomes a postsecondary school is required to disclose under Section 13-34-109;

(8) specifying the electronic format in which a postsecondary school is required to maintain an educational credential in accordance with Section 13-34-203;

(9) establishing the type and number of credits required to obtain a degree or diploma from a postsecondary school that is not an accredited postsecondary school; and

(10) establishing:

(a) standards for granting to a postsecondary school a state authorization certificate in accordance with a reciprocity agreement;

(b) any filing, document, or fee required for a postsecondary school to obtain a state authorization certificate in accordance with a reciprocity agreement; and

§ 13-34-104 Enforcement powers -- Action by division -- Referral.

(1)

(a) In addition to the division's other enforcement powers under Chapter 2, Division of Consumer Protection, and elsewhere in this chapter, the division may, in response to a complaint or on the division's own initiative, investigate a postsecondary school to verify compliance with this chapter.

(b) For the purpose of an investigation described in Subsection (1)(a), the division may:

(i) administer an oath or affirmation;

(ii) issue a subpoena for testimony or the production of evidence;

(iii) visit a postsecondary school's physical location; and

(iv) conduct an audit.

(2)

(a) The division may provide information concerning a potential violation of this chapter or rule made under this chapter to the attorney general, the county attorney, or district attorney of any county or prosecution district in which the violation or potential violation is occurring or has occurred.

(b) The attorney described in Subsection (2)(a) shall investigate the information provided by the division and immediately prosecute or bring suit to enjoin an act determined to be a violation of the chapter or rule.

(3) In addition to other penalties and remedies in this chapter, and in addition to the division's other enforcement powers under Section 13-2-107, the division may:

(a) issue a cease and desist order;

(b) impose an administrative fine for a violation of this chapter as described in Section 13-34-105; or

(4) In an action the division brings to enforce a provision of this chapter, the court may:

(a) declare that an act or practice violates a provision of this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured person;

(e) impose a fine;

(f) order payment of a fine imposed under Section 13-34-105;

(g) order production of educational records to the division; or

(h) award any other relief the court deems reasonable and necessary.

(5) If a court of competent jurisdiction grants judgment or injunctive relief in the division's favor, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(6) The division shall deposit all money the division receives for the payment of a fine or civil penalty imposed under this section into the Consumer Protection Education and Training Fund created in Section 13-2-109.

§ 13-34-105 Penalties and remedies.

(1) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection, and elsewhere in this chapter, the division director may, for a violation of this chapter:

(a) issue a cease and desist order; and

(b) impose an administrative fine of up to:

(i) $250 per day that a postsecondary school operates without an effective registration certificate;

(ii) $1,000 for each violation of Section 13-34-203;

(iii) $2,500 for each violation of this chapter that is not:

(A) described in Subsections (1)(b)(i) or (ii); or

(B) an intentional violation; or

(iv) $5,000 for each intentional violation of this chapter.

(2) A person intentionally violates this chapter if:

(a)

(i) the violation occurs after one of the following notifies the person that the person has violated or is violating this chapter:

(A) the division;

(B) the attorney general; or

(ii) the violation is the same as the violation of which the person was notified under Subsection (2)(a)(i); or

(b) a person violates a cease and desist order the division issues under Subsection (1)(a).

(3) An intentional violation of this chapter is a class B misdemeanor.

(4) The division shall deposit all money the division receives as payment for administrative fines imposed under Subsection (1)(b) into the Consumer Protection Education and Training Fund created in Section 13-2-109.

§ 13-34-106 Denial, suspension, or revocation of registration statement, registration certificate, or state authorization certificate -- Limits on registration certificate and state authorization certificate.

(1) In accordance with Chapter 2, Division of Consumer Protection, and Title 63G, Chapter 4, Administrative Procedures Act, the division may initiate adjudicative proceedings to deny, suspend, or revoke a registration statement, registration certificate, or state authorization certificate if:

(a) the division finds that the denial, suspension, or revocation is in the public interest; and

(b)

(i) the registration statement is incomplete, false, or misleading;

(ii) the division determines that a postsecondary school's educational credential represents undertaking or completing an educational achievement that has not been undertaken or completed; or

(iii) a postsecondary school or a principal of the postsecondary school:

(A) violates, causes a violation, or allows a violation of a provision of:

(I) this chapter;

(II) a rule made by the division under this chapter; or

(III) a commitment made in a registration statement;

(B) violates Chapter 11, Utah Consumer Sales Practices Act;

(C) is enjoined by a court, or is the subject of an administrative or judicial order issued in Utah or another state, if the injunction or order:

(I) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or

(II) is based on a finding of lack of integrity, truthfulness, or mental competence;

(D) is convicted of a crime involving theft, fraud, or dishonesty;

(E) obtains or attempts to obtain a registration certificate by misrepresenting any material fact;

(F) fails to timely file with the division a report required by:

(I) this chapter; or

(II) a rule the division makes under this chapter;

(G) fails to provide information the division requests;

(H) fails to pay an administrative fine the division imposes under this chapter, or a fine an administrative or judicial order in Utah or another state imposes;

(I) fails to demonstrate fiscal responsibility;

(J) fails to pay the fee required to file a registration statement;

(K) fails to satisfy the requirements of this chapter or rule made by the division under this chapter; or

(L) fails to satisfy a reasonable restriction or condition the division imposes under Subsection (2).

(2) The division may impose reasonable restrictions and conditions on a postsecondary school's registration certificate or state authorization certificate if:

(a) the restriction or condition protects student interests; and

(b) a behavior or condition described in Subsection (1)(b) applies to the postsecondary school or the postsecondary school's principal, registration statement, or educational credential.

§ 13-34-107 Limitation of authority.

Except for satisfying the provisions of this chapter and any rule made by the division in accordance with this chapter, nothing in this chapter authorizes the division to regulate educational content or to regulate a postsecondary school's day-to-day operations.

§ 13-34-108 Prohibited acts.

(1) A person may not operate a postsecondary school in this state unless:

(a)

(i) the person files with the division a registration statement for the postsecondary school that complies with:

(A) the requirements of this chapter; and

(B) rules made by the division; and

(ii) the division issues a registration certificate to the postsecondary school; or

(b) the postsecondary school is exempt from the requirement to submit a registration statement under Section 13-34-111.

(2) A person that operates a postsecondary school, a postsecondary school, or a postsecondary school's agent or principal may not:

(a) omit from a registration statement a material statement of fact required by this chapter or rule the division makes under this chapter;

(b) include in a registration statement any material statement of fact that the person, postsecondary school, or the postsecondary school's principal or agent knew or should have known to be false, deceptive, inaccurate, or misleading;

(c) in connection with any investigation or request for information made by the division in accordance with this chapter, make any material statement of fact that the person, postsecondary school, or agent knew or should have known to be false, deceptive, inaccurate, or misleading;

(d) fail to provide a refund to a student within 30 days of receiving a valid request for a refund;

(e) engage in a deceptive act or practice in connection with offering or providing postsecondary education;

(f) make or cause to be made an oral, written, or visual statement or representation that the person who operates a postsecondary school, a postsecondary school, or a postsecondary school's principal or agent knows or should know is false, deceptive, substantially inaccurate, or misleading;

(g) fail to comply with the requirements of this chapter or rule made under this chapter; or

(h) fail to satisfy a reasonable restriction or condition the division imposes in accordance with Subsection 13-34-106(2).

(3)

(a) A postsecondary school may not offer, sell, or award an educational credential unless the recipient of the educational credential receives instruction and successfully completes requirements for the educational credential that are commensurate with reasonable standards applicable to the educational credential.

(b) Subsection (3)(a) does not apply to:

(i) an educational credential that is clearly and conspicuously designated as an honorary educational credential; or

(ii) a certificate or other award that does not designate enrollment in or successful completion of instruction or requirements to obtain a credential.

(4) A postsecondary school's name may not contain a reference that is misleading to a student or the public with respect to the type or nature of the postsecondary school's services, affiliation, or structure.

(5) A postsecondary school's principal or agent may not misrepresent the principal's or agent's level of educational attainment or other qualification in connection with the postsecondary school's operation.

(6) A postsecondary school may not represent that the division or the state endorses or approves the postsecondary school.

(7) After a postsecondary school provides notice to the division that the postsecondary school will cease operations as described in Section 13-34-205, the postsecondary school may not:

(a) advertise, recruit, enroll, or offer services to a new student;

(b) charge an existing student for services beyond the services for which the student has already paid or is obligated to pay;

(d) fail to comply with the requirements of Section 13-34-205.

(8) A violation of this chapter is also a violation of Subsection 13-11-4(1).

§ 13-34-109 Required disclosures.

(1) As used in this section, "cooling off period" means a three-business day period during which a student may rescind an enrollment agreement and receive a refund of all money paid, except:

(a) a reasonable application fee; and

(b) a deposit that does not exceed 10% of the total cost of tuition for the first term.

(2) Before a postsecondary school may enroll or accept payment from a student, the postsecondary school shall clearly and conspicuously disclose in writing to the student:

(a) the postsecondary school's name, address, and location;

(b) the requirements or qualifications a student is required to satisfy to enroll in the postsecondary school;

(i) facilities, faculty, resources, or equipment that the student may use in connection with the services, or to access the services;

(ii) the duration of services provided; and

(iii) completion or graduation requirements;

(d) information regarding how the postsecondary school's services relate to state licensing requirements if the services are intended to prepare a student for licensure;

(e) tuition, fees, and any other charge or expense to be paid by the student;

(f) a financial assistance policy, if any;

(g) the complete terms of any financing agreement, including an income sharing or other agreement, offered to the student;

(h) the postsecondary school's cancellation and tuition refund policy which shall include, at a minimum:

(i) a cooling off period that may not end before midnight on the third business day after the latest of:

(A) the day on which the student signs the enrollment agreement;

(B) the day on which the student pays the postsecondary school for services, other than an application fee;

(D) the day on which the student first gains access to the postsecondary school's services; and

(ii) a written description of the postsecondary school's refund policy following the cooling off period described in Subsection (2)(h)(i);

(i)

(i) whether the postsecondary school is accredited by an accrediting agency; and

(ii) whether the program in which a student intends to enroll is accredited by an accrediting agency, if applicable;

(j) the existence and amount of the postsecondary school's surety bond or certificate of deposit;

(k) information regarding how to file a complaint against the postsecondary school with the division, the postsecondary school's accrediting agency, and the postsecondary school's approval or licensing entity; and

(l) student outcomes specified in rules made by the division under Section 13-34-103.

(3) A postsecondary school may comply with Subsection (2)(k) by placing a conspicuous link on the postsecondary school's website that connects to:

(a) the contact information for each entity described in Subsection (2)(k) with which a person may file a complaint; or

(b) a third party's website that states the contact information for each entity described in Subsection (2)(k) with which a person may file a complaint.

§ 13-34-110 Requirement to provide official transcript and diploma to a student.

(1) A postsecondary school shall provide an official transcript or diploma to a student within 60 days of receiving a request from the student or the student's authorized representative.

(2) A postsecondary school may charge a reasonable fee to provide a transcript or diploma as described in Subsection (1).

§ 13-34-111 Exemptions.

(1) As used in this section, "State Authorization Reciprocity Agreement" or "SARA" means an agreement among member states, districts, and territories establishing comparable national standards for offering interstate postsecondary distance education courses and programs.

(2)

(a) Except as provided in Subsection (2)(b), this chapter does not apply to a public postsecondary school.

(b) Notwithstanding Subsection (2)(a), the division may issue a state authorization certificate to a public postsecondary school in accordance with Section 13-34-302.

(3) A postsecondary school is exempt from Sections 13-34-201 through 13-34-205 if:

(a) the postsecondary school:

(i) is an active participant institution in SARA that provides distance education to an individual in Utah in accordance with SARA; and

(ii) does not maintain a physical presence in the state;

(b) a bona fide church or religious organization that is exempt from property taxation by this state owns, controls, operates, or maintains the postsecondary school;

(i) sponsors or conducts postsecondary education primarily for its employees, independent contractors, or members; and

(ii) does not advertise as a school; or

(d) exclusively offers one or more of the following:

(i) postsecondary education:

(A)

(I) that is avocational, nonvocational, or recreational;

(II) for which the postsecondary school does not represent vocational objectives; and

(III) for which the postsecondary school does not grant a degree, diploma, or other educational credential commensurate with a degree or diploma;

(B)

(I) that is a prerequisite to obtain or maintain a license or certification issued by a government agency; and

(II) through a postsecondary school that a Utah or federal government agency regulates and licenses, registers, or otherwise approves to provide the education; or

(C)

(I) for which the postsecondary school charges a student less than an amount established by division rule in any 12-month period; and

(II) for which the postsecondary school does not grant a degree, diploma, or other educational credential commensurate with a degree or diploma;

(ii) preparation for an individual to teach courses or instruction described in Subsection (3)(d)(i)(A);

(iii) courses in English as a second language or other language courses;

(iv) instruction to advance personal development or a general professional skill:

(A) that is not independently sufficient to prepare an individual for specific employment; and

(B) for which the postsecondary school does not grant a degree, diploma, or other educational credential commensurate with a degree or diploma;

(v) instruction designed to prepare an individual to run for political office, for which the postsecondary school does not grant a degree, diploma, or other educational credential commensurate with a degree or diploma;

(vi) professional review programs, including certified public accountant or bar examination review and preparation courses; or

(vii) instruction to an apprentice:

(A) as part of an apprenticeship; and

(B) provided by a person who voluntarily conforms to Title 35A, Chapter 6, Apprenticeship Act, in accordance with Section 35A-6-104.

(4) A postsecondary school that is exempt under this section shall file a registration statement with the division within 30 days of the date on which the postsecondary school no longer qualifies for exemption.

(5)

(a) A postsecondary school that is exempt in accordance with this section may voluntarily submit a registration statement.

(b) A postsecondary school that voluntarily submits a registration statement as described in Subsection (5)(a), and obtains a registration certificate, is not exempt from Sections 13-34-201 through 13-34-205.

(6) A postsecondary school bears the burden of proving it is exempt under this section.

§ 13-34-112 Enforcement of contract or agreement -- Rescission based on defective registration statement -- Rescission based on revocation of certificate of state authorization.

(1) A postsecondary school subject to this chapter may not enforce in the courts of this state a contract or agreement relating to postsecondary education services unless, at the time the contract or agreement is executed:

(a) the division has issued a registration certificate to the postsecondary school; or

(b) the postsecondary school is exempt from this chapter under Section 13-34-111.

(2) If an accredited postsecondary school's state authorization certificate is revoked in accordance with Section 13-34-106, or the accredited postsecondary school loses its accreditation, a student who enrolled in the postsecondary school in reliance upon the benefits offered by the accredited postsecondary school's possession of a valid state authorization certificate or the accredited postsecondary school's accreditation may rescind an enrollment agreement.

(3) If a student rescinds an enrollment agreement as described in Subsection (2), the postsecondary school shall:

(a) release the student's future obligation to the postsecondary school for any tuition, fees, or other charges that the student paid to the postsecondary school; and

(b) refund the student any tuition, fees, or other charges that the student, or a person on the student's behalf, paid to the postsecondary school.

§ 13-34-113 Private right of action.

(1) A person may bring an action in a court of competent jurisdiction against a postsecondary school that does not comply with this chapter.

(2) If a court of competent jurisdiction finds that a postsecondary school violated this chapter, a person who brings an action under Subsection (1) is entitled to:

(a) declaratory judgment that an act or practice violates this chapter;

(b) injunctive relief;

(d) for a loss suffered as a result of a violation of this chapter, an amount equal to the greater of:

(i) actual damages; or

(ii) $2,000; and

(e) an award of reasonable attorney fees and court costs.

Part 2 Postsecondary School Responsibilities

§ 13-34-201 Registration statement -- Registration certificate -- Renewal.

(1) Unless exempt under Section 13-34-111, a person shall file a registration statement and obtain a registration certificate before operating a postsecondary school in this state.

(2) Before the division issues a registration certificate for a postsecondary school, the postsecondary school shall file with the division a registration statement that complies with:

(a) the requirements of this chapter; and

(b) rules made by the division in accordance with this chapter and Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(3) A registration statement shall:

(a) be submitted on a form approved by the division;

(b) designate the certificate that the postsecondary school seeks;

(i) not accredited by an accrediting agency;

(ii) an accredited postsecondary school; or

(iii) a longstanding nonprofit accredited postsecondary school;

(d) designate a person who is authorized to respond to an inquiry from the division; and

(e) include all information required by rules made by the division in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(4) A registration statement shall be:

(a) signed by the postsecondary school's owner or responsible officer; and

(b) verified by an unsworn declaration in accordance with Title 78B, Chapter 18a, Uniform Unsworn Declarations Act.

(5) A postsecondary school that submits a registration statement shall pay a non-refundable fee the division establishes in accordance with Sections 13-34-102 and 63J-1-504.

(6)

(a) The division may require a postsecondary school's principal to:

(i) submit a fingerprint card in a form acceptable to the division; and

(ii) consent to a criminal background check by:

(A) the Utah Bureau of Criminal Identification; or

(B) another state or federal agency that performs criminal background checks.

(b) The postsecondary school or the postsecondary school's principal who is the subject of the background check shall pay the cost of:

(i) the fingerprint card described in Subsection (6)(a)(i); and

(ii) the criminal background check described in Subsection (6)(a)(ii).

(7)

(a) A person shall submit a separate registration statement for each postsecondary school the person operates.

(b) Notwithstanding Subsection (7)(a), a longstanding nonprofit accredited postsecondary school that obtains and holds an active registration certificate is not required to submit a separate registration statement for a postsecondary school that:

(i) is wholly owned and operated by the longstanding nonprofit accredited postsecondary school;

(ii) is disclosed on the longstanding nonprofit accredited postsecondary school's registration statement; and

(iii) operates as a nonprofit organization.

(8) A registration certificate expires:

(a) one year after it is issued to a postsecondary school that is not an accredited postsecondary school; or

(b) two years after it is issued to an accredited postsecondary school.

(9) A registration statement, and any certificate issued in accordance with this chapter, are not transferable.

(10) Notwithstanding Subsection (8), the division may extend the period for which a registration certificate is effective so that expiration dates are staggered throughout the year.

(11) To renew a registration certificate under this section, a postsecondary school shall submit a registration renewal application to the division at least 30 days before the day on which the postsecondary school's registration expires.

§ 13-34-202 Surety requirements.

(1) A postsecondary school required to obtain a registration certificate in accordance with this chapter shall maintain, in a form and amount approved by the division:

(a) a surety bond issued by a surety authorized to transact surety business in the state;

(b) a certificate of deposit in a financial institution authorized under the laws of this state or the laws of the United States to accept deposits from the public; or

(2) The division shall use the surety bond or certificate of deposit as protection against loss of unearned tuition, tuition paid for credits that a student earned but that are not transferrable to a comparable postsecondary school, book fees, supply fees, or equipment fees:

(a) collected by the postsecondary school from a student or another person on a student's behalf; or

(b) that the student is obligated to pay.

(3) A surety bond or certificate of deposit obtained in accordance with this section may not expire:

(a) earlier than 60 days after the first day on which no student is enrolled in the postsecondary school; and

(b) while students are enrolled in the postsecondary school.

§ 13-34-203 Record keeping.

(1) A postsecondary school shall maintain a student's official transcript and any diploma, degree, or certificate:

(a) in an electronic format established by division rule in accordance with Section 13-34-103; and

(b) for not less than 60 years.

(2) A postsecondary school shall maintain an educational credential not described in Subsection (1):

(a) in an electronic format established by division rule in accordance with Section 13-34-103; and

(b) for not less than 10 years.

(3) A postsecondary school shall maintain a student's enrollment agreement, record of the student's payment, and any financing agreement:

(a) in an electronic format established by division rule in accordance with Section 13-34-103; and

(b) for not less than 10 years.

(4)

(a) The division may require a postsecondary school to provide an educational credential to the division.

(b) A postsecondary school shall provide a requested educational credential to the division within 14 days of a request from the division described in Subsection (4)(a).

(5) Each educational credential that is not maintained in accordance with this section constitutes a separate violation of this chapter.

(6)

(a) A postsecondary school may submit to the division a written petition to request that the 60-year period described in Subsection (1) be reduced.

(b) Upon receipt of a written petition from a postsecondary school, the division may reduce the 60-year period described in Subsection (1) if:

(i) the reduced period will not substantially harm student interests;

(ii) the reduced period is consistent with any applicable requirement imposed on the postsecondary school by its accreditor or by the United States Department of Education; and

(iii) the postsecondary school demonstrates good cause for the reduced period.

§ 13-34-204 Reporting material changes to registration statement.

(1) A postsecondary school shall notify the division in writing within 30 days of any material change to any information provided in a registration statement.

(2) The division may require a postsecondary school to submit a new registration statement based upon a material change to the information provided in a registration statement.

§ 13-34-205 Closure.

(1)

(a) A postsecondary school that has obtained a registration certificate, but has not obtained a state authorization certificate, may not cease operations unless the postsecondary school provides written notice to the division at least 30 days before the day on which the postsecondary school ceases operations that includes:

(i) the day on which the postsecondary school will cease operations;

(ii) a copy of a teach-out plan similar to one defined in 34 C.F.R. Sec. 602.3, or another written plan that describes how students will be impacted by the postsecondary school ceasing operations;

(iii) a current list of students enrolled in the postsecondary school, including:

(A) the program in which each student is enrolled;

(B) each student's anticipated graduation date; and

(iv) if the postsecondary school is an accredited postsecondary school, a written certification signed by the postsecondary school's principal that the postsecondary school is compliant with and will continue to comply with the postsecondary school's accrediting agency's closure requirements.

(b) A postsecondary school described in Subsection (1)(a) shall provide official transcripts to the division, upon request.

(2) A postsecondary school that has obtained a state authorization certificate may not cease operations unless the postsecondary school provides written notice to the division at least 30 days before the day on which the postsecondary school ceases operations that includes:

(a) the date on which the postsecondary school will cease operations;

(b) a written certification signed by the postsecondary school's principal that the postsecondary school is compliant and will continue to comply with the postsecondary school's accrediting agency's closure requirements;

(c) a copy of any teach-out plan, as defined by 34 C.F.R. Sec. 602.3, approved by the postsecondary school's accrediting agency; and

(d) to the extent permitted by law:

(i) a current list of students who are enrolled in the postsecondary school; and

(ii) for each student described in Subsection (2)(d)(i):

(A) the student's contact information;

(B) the program or programs in which the student is enrolled;

(D) the method of payment the student used to pay the postsecondary school.

(3) After a postsecondary school submits the written notice described in Subsection (1) or (2), the postsecondary school:

(a) may not recruit or enroll new students; and

(b) shall, within 14 days or another period approved by the division, inform its students in writing that it intends to cease operation.

(4)

(a) The provisions of this Subsection (4) apply to the extent not prohibited by federal law.

(b) If a postsecondary school that ceases operations possesses a student's educational credential, the postsecondary school shall:

(i) provide for storage of the educational credential;

(ii) provide the educational credential to a student in accordance with Section 13-34-110; and

(iii) if applicable, make the educational credential available to the same extent that an education record is available under the Family Educational Rights and Privacy Act, 34 C.F.R. Part 99.

Part 3 State Authorization

§ 13-34-301 State authorization -- State authorization certificate.

(1) A postsecondary school that operates in the state obtains state authorization for purposes of 34 C.F.R. Sec. 600.9 if the division issues to the postsecondary school a state authorization certificate in accordance with this chapter.

(2) A postsecondary school may obtain state authorization in a manner different from the manner described in Subsection (1) if the alternative manner is accepted by the United States Department of Education.

(3)

(a) A state authorization certificate is not an endorsement or approval of a postsecondary school by the division or the state.

(b) A postsecondary school may not represent that a state authorization certificate is an endorsement or approval by the division or the state.

§ 13-34-302 Registration statement for state authorization certificate -- Expiration -- Renewal.

(1) A postsecondary school may submit a registration statement to obtain a state authorization certificate if the postsecondary school is accredited by an accrediting agency recognized by the United States Department of Education.

(2) To obtain a state authorization certificate, a postsecondary school shall submit a registration statement on a form approved by the division that includes:

(a) proof of current accreditation from the postsecondary school's accrediting agency; and

(b) all information required by division rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(3)

(a) Except as provided in Subsection (3)(b), a state authorization certificate expires two years after the division issues the state authorization certificate to an accredited postsecondary school.

(b) Notwithstanding Subsection (3)(a), the division may extend the period for which a state authorization certificate is effective so that expiration dates are staggered throughout the year.

(4) A state authorization certificate that the division issues to a longstanding nonprofit accredited postsecondary school:

(a) expires two years after the division issues the state authorization certificate;

(b) establishes the postsecondary school by name as an educational institution in accordance with 34 C.F.R. Sec. 600.9(a)(1)(i);

(d) authorizes the postsecondary school to operate educational programs in the state that are beyond secondary education, including programs that lead to a degree or certificate.

(5) A state authorization certificate that the division issues to a public postsecondary school does not expire.

(6) A postsecondary school may satisfy Subsection (2)(a) by demonstrating to the division that the postsecondary school is:

(a) within a grace period provided by the United States Department of Education for obtaining new accreditation; or

(b) otherwise considered by the United States Department of Education to have recognized accreditation.

(7) To renew a state authorization certificate under this section, a postsecondary school shall submit a registration statement to the division at least 30 days before the day on which the postsecondary school's state authorization expires.

§ 13-34-303 Authority to execute interstate reciprocity agreement.

(1) As used in this section, "institution of higher education" means the same as that term is defined in Section 53H-1-101.

(2) The division may execute an interstate reciprocity agreement that is:

(a) for purposes of state authorization in accordance with 34 C.F.R. Sec. 600.9; and

(b) for the benefit of:

(i) postsecondary schools in the state; or

(ii)

(A) postsecondary schools in the state; and

(B) institutions of higher education.

(3) If the division executes an interstate reciprocity agreement described in Subsection (2) that includes institutions of higher education, the Utah Board of Higher Education may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:

(a) implement the reciprocity agreement; and

(b) relate to institutions of higher education.

Chapter 35 Powersport Vehicle Franchise Act

Part 1 General Administration

§ 13-35-101 Title.

This chapter is known as the "Powersport Vehicle Franchise Act."

§ 13-35-102 Definitions.

As used in this chapter:

(1) "Dealership" means a site or location in this state:

(a) at which a franchisee conducts the business of a new powersport vehicle dealer; and

(b) that is identified as a new powersport vehicle dealer's principal place of business for registration purposes under Section 13-35-105.

(2) "Department" means the Department of Commerce.

(3) "Executive director" means the executive director of the Department of Commerce.

(4) "Franchise" or "franchise agreement" means a written agreement, for a definite or indefinite period, in which:

(a) a person grants to another person a license to use a trade name, trademark, service mark, or related characteristic; and

(b) a community of interest exists in the marketing of new powersport vehicles, new powersport vehicle parts, and services related to the sale or lease of new powersport vehicles at wholesale or retail.

(5) "Franchisee" means a person with whom a franchisor has agreed or permitted, in writing or in practice, to purchase, sell, or offer for sale new powersport vehicles manufactured, produced, represented, or distributed by the franchisor.

(6)

(a) "Franchisor" means a person who has, in writing or in practice, agreed with or permits a franchisee to purchase, sell, or offer for sale new powersport vehicles manufactured, produced, represented, or distributed by the franchisor, and includes:

(i) the manufacturer or distributor of the new powersport vehicles;

(ii) an intermediate distributor;

(iii) an agent, officer, or field or area representative of the franchisor; and

(iv) a person who is affiliated with a manufacturer or a representative or who directly or indirectly through an intermediary is controlled by, or is under common control with the manufacturer.

(b) For purposes of Subsection (6)(a)(iv), a person is controlled by a manufacturer if the manufacturer has the authority directly or indirectly by law or by an agreement of the parties, to direct or influence the management and policies of the person.

(7) "Lead" means the referral by a franchisor to a franchisee of an actual or potential customer for the purchase or lease of a new powersport vehicle, or for service work related to the franchisor's vehicles.

(8) "Line-make" means the powersport vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the franchisor, or manufacturer of the powersport vehicle.

(9) "New powersport vehicle dealer" means a person who is engaged in the business of buying, selling, offering for sale, or exchanging new powersport vehicles either outright or on conditional sale, bailment, lease, chattel mortgage, or otherwise who has established a place of business for the sale, lease, trade, or display of powersport vehicles.

(10) "Notice" or "notify" includes both traditional written communications and all reliable forms of electronic communication unless expressly prohibited by statute or rule.

(11)

(a) "Powersport vehicle" means:

(i) an all-terrain type I, type II, or type III vehicle "ATV" defined in Section 41-22-2;

(ii) a snowmobile as defined in Section 41-22-2;

(iii) a motorcycle as defined in Section 41-1a-102;

(iv) a personal watercraft as defined in Section 73-18-2; or

(v) a moped as defined in Section 41-6a-102.

(b) "Powersport vehicle" does not include:

(i) an electric assisted bicycle defined in Section 41-6a-102;

(ii) a motor assisted scooter as defined in Section 41-6a-102; or

(iii) an electric personal assistive mobility device as defined in Section 41-6a-102.

(12) "Relevant market area" means:

(a) for a powersport dealership in a county that has a population of less than 225,000:

(i) the county in which the powersport dealership exists or is to be established or relocated; and

(ii) in addition to the county described in Subsection (12)(a)(i), the area within a 15-mile radius from the site of the existing, new, or relocated dealership; or

(b) for a powersport dealership in a county that has a population of 225,000 or more, the area within a 10-mile radius from the site of the existing, new, or relocated dealership.

(13) "Sale, transfer, or assignment" means any disposition of a franchise or an interest in a franchise, with or without consideration, including a bequest, inheritance, gift, exchange, lease, or license.

(14) "Serve" or "served," unless expressly indicated otherwise by statute or rule, includes any reliable form of communication.

(15) "Written," "write," "in writing," or other variations of those terms shall include all reliable forms of electronic communication.

§ 13-35-104 Powers and duties of the executive director.

(1) The executive director shall:

(a) administer and enforce this chapter; and

(b) make rules for the administration of this chapter in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(2)

(a) An adjudicative proceeding under this chapter shall be conducted in accordance with Title 63G, Chapter 4, Administrative Procedures Act.

§ 13-35-105 Registration -- Fees.

(1) A franchisee or franchisor doing business in this state shall:

(a) annually register or renew its registration with the department in a manner established by the department; and

(b) pay an annual registration fee in an amount determined by the department in accordance with Sections 13-1-2 and 63J-1-504.

(4) The fee imposed under Subsection (1)(b) shall be collected by the department and deposited into the Commerce Service Account created by Section 13-1-2.

§ 13-35-106 Administrative proceedings commenced by the agency.

(1) Except as provided in Subsection (3), after a hearing, if the executive director finds that a person has violated this chapter or any rule made under this chapter, the executive director may:

(a) issue a cease and desist order; and

(b) assess an administrative fine.

(2)

(a) In determining the amount and appropriateness of an administrative fine under Subsection (1), the executive director shall consider:

(i) the gravity of the violation;

(ii) any history of previous violations; and

(iii) any attempt made by the person to retaliate against another person for seeking relief under this chapter or other federal or state law relating to the motor vehicle industry.

(3)

(b) In issuing an emergency order under Subsection (3)(a), the executive director shall comply with the requirements of Subsections 63G-4-502(2) and (3).

§ 13-35-107 Administrative proceedings -- Request for agency action.

(1)

(a) A person may commence an adjudicative proceeding in accordance with this chapter and with Title 63G, Chapter 4, Administrative Procedures Act, to:

(i) remedy a violation of this chapter;

(ii) obtain approval of an act regulated by this chapter; or

(iii) obtain any determination that this chapter specifically authorizes that person to request.

(b) A person shall commence an adjudicative proceeding by filing a request for agency action in accordance with Section 63G-4-201.

(2) The executive director shall apportion in a fair and equitable manner between the parties any costs of the adjudicative proceeding, including reasonable attorney fees.

Part 2 Franchises in General

§ 13-35-201 Prohibited acts by franchisors -- Disclosures.

(1) A franchisor in this state may not:

(a) except as provided in Subsection (2), require a franchisee to order or accept delivery of any new powersport vehicle, part, accessory, equipment, or other item not otherwise required by law that is not voluntarily ordered by the franchisee;

(b) require a franchisee to:

(i) participate monetarily in any advertising campaign or contest; or

(ii) purchase any promotional materials, display devices, or display decorations or materials;

(d) require a franchisee to refrain from participating in the management of, investment in, or acquisition of any other line of new powersport vehicles or related products, if the franchisee:

(i) maintains a reasonable line of credit for each make or line of powersport vehicles; and

(ii) complies with reasonable capital and facilities requirements of the franchisor;

(e) require a franchisee to prospectively agree to a release, assignment, novation, waiver, or estoppel that would:

(i) relieve a franchisor from any liability, including notice and hearing rights imposed on the franchisor by this chapter; or

(ii) require any controversy between the franchisee and a franchisor to be referred to a third party if the decision by the third party would be binding;

(g) coerce or attempt to coerce a franchisee to join, contribute to, or affiliate with an advertising association;

(i) adopt, change, establish, modify, or implement a plan or system for the allocation, scheduling, or delivery of new powersport vehicles, parts, or accessories to its franchisees so that the plan or system is not fair, reasonable, and equitable;

(j) increase the price of any new powersport vehicle that the franchisee has ordered from the franchisor and for which there exists at the time of the order a bona fide sale to a retail purchaser if the order was made prior to the franchisee's receipt of an official written price increase notification;

(k) fail to indemnify and hold harmless its franchisee against any judgment for damages or settlement approved in writing by the franchisor:

(i) including court costs and attorneys' fees arising out of actions, claims, or proceedings including those based on:

(A) strict liability;

(B) negligence;

(D) express or implied warranty;

(E) revocation as described in Section 70A-2-608; or

(F) rejection as described in Section 70A-2-602; and

(ii) to the extent the judgment or settlement relates to alleged defective or negligent actions by the franchisor;

(l) threaten or coerce a franchisee to waive or forbear its right to protest the establishment or relocation of a same line-make franchisee in the relevant market area of the affected franchisee;

(m) fail to ship monthly to a franchisee, if ordered by the franchisee, the number of new powersport vehicles of each make, series, and model needed by the franchisee to achieve a percentage of total new vehicle sales of each make, series, and model equitably related to the total new vehicle production or importation being achieved nationally at the time of the order by each make, series, and model covered under the franchise agreement;

(n) require or otherwise coerce a franchisee to under-utilize the franchisee's existing facilities;

(o) fail to include in any franchise agreement the following language or language to the effect that: "If any provision in this agreement contravenes the laws, rules, or regulations of any state or other jurisdiction where this agreement is to be performed, or provided for by such laws or regulations, the provision is considered to be modified to conform to such laws, rules, or regulations, and all other terms and provisions shall remain in full force.";

(p) engage in the distribution, sale, offer for sale, or lease of a new powersport vehicle to purchasers who acquire the vehicle in this state except through a franchisee with whom the franchisor has established a written franchise agreement, if the franchisor's trade name, trademark, service mark, or related characteristic is an integral element in the distribution, sale, offer for sale, or lease;

(q) except as provided in Subsection (2), authorize or permit a person to perform warranty service repairs on powersport vehicles, except warranty service repairs:

(i) by a franchisee with whom the franchisor has entered into a franchise agreement for the sale and service of the franchisor's powersport vehicles; or

(ii) on owned powersport vehicles by a person or government entity who has purchased new powersport vehicles pursuant to a franchisor's or manufacturer's fleet discount program;

(r) fail to provide a franchisee with a written franchise agreement;

(s) notwithstanding any other provisions of this chapter, unreasonably fail or refuse to offer to its same line-make franchised dealers all models manufactured for that line-make, or unreasonably require a dealer to pay any extra fee, remodel, renovate, recondition the dealer's existing facilities, or purchase unreasonable advertising displays or other materials as a prerequisite to receiving a model or series of vehicles;

(t) except as provided in Subsection (5), directly or indirectly:

(i) own an interest in a new powersport vehicle dealer or dealership;

(ii) operate or control a new powersport vehicle dealer or dealership;

(iii) act in the capacity of a new powersport vehicle dealer, as defined in Section 13-35-102; or

(iv) operate a powersport vehicle service facility;

(u) fail to timely pay for all reimbursements to a franchisee for incentives and other payments made by the franchisor;

(v) directly or indirectly influence or direct potential customers to franchisees in an inequitable manner, including:

(i) charging a franchisee a fee for a referral regarding a potential sale or lease of any of the franchisee's products or services in an amount exceeding the actual cost of the referral;

(ii) giving a customer referral to a franchisee on the condition that the franchisee agree to sell the vehicle at a price fixed by the franchisor; or

(iii) advising a potential customer as to the amount that the potential customer should pay for a particular product;

(w) fail to provide comparable delivery terms to each franchisee for a product of the franchisor, including the time of delivery after the placement of an order by the franchisee;

(x) if personnel training is provided by the franchisor to its franchisees, unreasonably fail to make that training available to each franchisee on proportionally equal terms;

(y) condition a franchisee's eligibility to participate in a sales incentive program on the requirement that a franchisee use the financing services of the franchisor or a subsidiary or affiliate of the franchisor for inventory financing;

(z) make available for public disclosure, except with the franchisee's permission or under subpoena or in any administrative or judicial proceeding in which the franchisee or the franchisor is a party, any confidential financial information regarding a franchisee, including:

(i) monthly financial statements provided by the franchisee;

(ii) the profitability of a franchisee; or

(iii) the status of a franchisee's inventory of products;

(aa) use any performance standard, incentive program, or similar method to measure the performance of franchisees unless the standard or program:

(i) is designed and administered in a fair, reasonable, and equitable manner;

(ii) if based upon a survey, utilizes an actuarially generally acceptable, valid sample; and

(iii) is, upon request by a franchisee, disclosed and explained in writing to the franchisee, including:

(A) how the standard or program is designed;

(B) how the standard or program will be administered; and

(bb) other than sales to the federal government, directly or indirectly, sell, lease, offer to sell, or offer to lease, a new powersport vehicle or any powersport vehicle owned by the franchisor, except through a franchised new powersport vehicle dealer;

(cc) compel a franchisee, through a finance subsidiary, to agree to unreasonable operating requirements, except that this Subsection (1)(cc) may not be construed to limit the right of a financing subsidiary to engage in business practices in accordance with the usage of trade in retail and wholesale powersport vehicle financing;

(dd) condition the franchisor's participation in co-op advertising for a product category on the franchisee's participation in any program related to another product category or on the franchisee's achievement of any level of sales in a product category other than that which is the subject of the co-op advertising;

(ee) discriminate against a franchisee in the state in favor of another franchisee of the same line-make in the state by:

(i) selling or offering to sell a new powersport vehicle to one franchisee at a higher actual price, including the price for vehicle transportation, than the actual price at which the same model similarly equipped is offered to or is made available by the franchisor to another franchisee in the state during a similar time period;

(ii) except as provided in Subsection (6), using a promotional program or device or an incentive, payment, or other benefit, whether paid at the time of the sale of the new powersport vehicle to the franchisee or later, that results in the sale of or offer to sell a new powersport vehicle to one franchisee in the state at a higher price, including the price for vehicle transportation, than the price at which the same model similarly equipped is offered or is made available by the franchisor to another franchisee in the state during a similar time period; or

(iii) except as provided in Subsection (7), failing to provide or direct a lead in a fair, equitable, and timely manner; or

(ff) through an affiliate, take any action that would otherwise be prohibited under this chapter.

(2) Subsection (1)(a) does not prevent the franchisor from requiring that a franchisee carry a reasonable inventory of:

(a) new powersport vehicle models offered for sale by the franchisor; and

(b) parts to service the repair of the new powersport vehicles.

(3) Subsection (1)(d) does not prevent a franchisor from:

(a) requiring that a franchisee maintain separate sales personnel or display space; or

(b) refusing to permit a combination of new powersport vehicle lines, if justified by reasonable business considerations.

(4) Upon the written request of any franchisee, a franchisor shall disclose in writing to the franchisee the basis on which new powersport vehicles, parts, and accessories are allocated, scheduled, and delivered among the franchisor's dealers of the same line-make.

(5)

(a) A franchisor may engage in any of the activities listed in Subsection (1)(t), for a period not to exceed 12 months if:

(i)

(A) the person from whom the franchisor acquired the interest in or control of the new powersport vehicle dealership was a franchised new powersport vehicle dealer; and

(B) the franchisor's interest in the new powersport vehicle dealership is for sale at a reasonable price and on reasonable terms and conditions; or

(ii) the franchisor is engaging in the activity listed in Subsection (1)(t) for the purpose of broadening the diversity of its dealer body and facilitating the ownership of a new powersport vehicle dealership by a person who:

(A) is part of a group that has been historically underrepresented in the franchisor's dealer body;

(B) would not otherwise be able to purchase a new powersport vehicle dealership;

(D) has an ownership interest in the new powersport vehicle dealership; and

(E) operates the new powersport vehicle dealership under a plan to acquire full ownership of the dealership within a reasonable period of time and under reasonable terms and conditions.

(b) The executive director may, for good cause shown, extend the time limit set forth in Subsection (5)(a) for an additional period not to exceed 12 months.

(c) Notwithstanding Subsection (1)(t), a franchisor may own, operate, or control a new powersport vehicle dealership trading in a line-make of powersport vehicle if:

(i) as to that line-make of powersport vehicle, there are no more than four franchised new powersport vehicle dealerships licensed and in operation within the state as of January 1, 2002;

(ii) the franchisor does not own directly or indirectly, more than a 45% interest in the dealership;

(iii) at the time the franchisor first acquires ownership or assumes operation or control of the dealership, the distance between the dealership thus owned, operated, or controlled and the nearest unaffiliated new powersport vehicle dealership trading in the same line-make is not less than 150 miles;

(iv) all the franchisor's franchise agreements confer rights on the franchisee to develop and operate as many dealership facilities as the franchisee and franchisor shall agree are appropriate within a defined geographic territory or area; and

(v) as of January 1, 2002, no fewer than half of the franchisees of the line-make within the state own and operate two or more dealership facilities in the geographic area covered by the franchise agreement.

(6) Subsection (1)(ee)(ii) does not prohibit a promotional or incentive program that is functionally available to all franchisees of the same line-make in the state on substantially comparable terms.

(7) Subsection (1)(ee)(iii) may not be construed to:

(a) permit provision of or access to customer information that is otherwise protected from disclosure by law or by contract between franchisor and a franchisee; or

(b) require a franchisor to disregard the preference of a potential customer in providing or directing a lead, provided that the franchisor does not direct the customer to such a preference.

(8) Subsection (1)(ff) does not limit the right of an affiliate to engage in business practices in accordance with the usage of trade in which the affiliate is engaged.

§ 13-35-202 Sale or transfer of ownership.

(1)

(a) The franchisor shall give effect to the change in a franchise agreement as a result of an event listed in Subsection (1)(b):

(i) subject to Subsection 13-35-305(2)(b); and

(ii) unless exempted under Subsection (2).

(b) The franchisor shall give effect to the change in a franchise agreement pursuant to Subsection (1)(a) for the:

(i) sale of a dealership;

(ii) contract for sale of a dealership;

(iii) transfer of ownership of a franchisee's dealership by sale, transfer of the business, or by stock transfer; or

(iv) change in the executive management of the franchisee's dealership.

(2) A franchisor is exempted from the requirements of Subsection (1) if:

(a) the transferee is denied, or would be denied, a new powersport vehicle franchisee's registration pursuant to Section 13-35-105; or

(b) the proposed sale or transfer of the business or change of executive management will be substantially detrimental to the distribution of the franchisor's new powersport vehicles or to competition in the relevant market area, provided that the franchisor has given written notice to the franchisee within 60 days following receipt by the franchisor of the following:

(i) a copy of the proposed contract of sale or transfer executed by the franchisee and the proposed transferee;

(iii)

(A) a written description of the business experience of the executive management of the transferee in the case of a proposed sale or transfer of the franchisee's business; or

(B) a written description of the business experience of the person involved in the proposed change of the franchisee's executive management in the case of a proposed change of executive management.

(3) For purposes of this section, the refusal by the franchisor to accept a proposed transferee is presumed to be unreasonable and undertaken without good cause if the proposed franchisee:

(a) is of good moral character; and

(4)

(b) After a hearing, the executive director shall determine, and enter an order providing that:

(i) the proposed transferee or change in executive management:

(A) shall be approved; or

(B) may not be approved for specified reasons; or

(ii) a proposed transferee or change in executive management is approved if specific conditions are timely satisfied.

(c)

(i) The franchisee shall have the burden of proof with respect to all issues raised by the franchisee's application for a hearing as provided in this section.

(ii) During the pendency of the hearing, the franchise agreement shall continue in effect in accordance with its terms.

(d) The executive director shall expedite, upon written request, any determination sought under this section.

§ 13-35-203 Succession to franchise.

(1)

(ii) the designated successor agrees to be bound by all of the terms and conditions of the franchise agreement; and

(iii) the designated successor meets the criteria generally applied by the franchisor in qualifying franchisees.

(b) A franchisor may refuse to honor the existing franchise agreement with the designated successor only for good cause.

(2)

(a) The franchisor may request in writing from a designated successor the personal and financial data that is reasonably necessary to determine whether the existing franchise agreement should be honored.

(b) The designated successor shall supply the personal and financial data promptly upon the request.

(3)

(i) receipt of the notice of the designated successor's intent to succeed the franchisee in the ownership and operation of the dealership; or

(ii) the receipt of the requested personal and financial data.

(4) The notice of the franchisor provided in Subsection (3) shall state:

(a) the specific grounds for the refusal to approve the succession; and

(5)

(a) This section does not prevent a franchisee from designating a person as the successor by written instrument filed with the franchisor.

(6)

(b) If application for a hearing is timely filed, the franchisor shall continue to honor the franchise agreement until after:

(i) the requested hearing has been concluded;

(ii) a decision is rendered by the executive director; and

(iii) the applicable appeal period has expired following a decision by the executive director.

§ 13-35-204 Franchisor's obligations related to service -- Franchisor audits -- Time limits.

(1) Each franchisor shall specify in writing to each of its franchisees licensed as a new powersport vehicle dealer in this state:

(a) the franchisee's obligations for new powersport vehicle preparation, delivery, and warranty service on its products;

(b) the schedule of compensation to be paid to the franchisee for parts, work, and service; and

(2)

(a) The schedule of compensation described in Subsection (1) shall include reasonable compensation for diagnostic work, as well as repair service, parts, and labor.

(b) Time allowances described in Subsection (1) for the diagnosis and performance of warranty work and service shall be reasonable and adequate for the work to be performed.

(3)

(a) In the determination of what constitutes reasonable compensation under this section, the principal factor to be considered is the prevailing wage rates being paid by franchisees in the relevant market area in which the franchisee is doing business.

(b) Compensation of the franchisee for warranty service work may not be less than the amount charged by the franchisee for like parts and service to retail or fleet customers, if the amounts are reasonable. For purposes of this Subsection (3)(b), the term "cost" shall be that same price paid by a franchisee to a franchisor or supplier for the part when the part is purchased for a nonwarranty repair.

(4) A franchisor may not fail to:

(a) perform any warranty obligation;

(b) include in written notices of franchisor's recalls to new powersport vehicle owners and franchisees the expected date by which necessary parts and equipment will be available to franchisees for the correction of the defects; or

(5) If a franchisor disallows a franchisee's claim for a defective part, alleging that the part is not defective, the franchisor at its option shall:

(a) return the part to the franchisee at the franchisor's expense; or

(b) pay the franchisee the cost of the part.

(6)

(a) A claim made by a franchisee pursuant to this section for labor and parts shall be paid within 30 days after its approval.

(b)

(i) A claim shall be either approved or disapproved by the franchisor within 30 days after receipt of the claim on a form generally used by the franchisor and containing the generally required information.

(ii) Any claim not specifically disapproved of in writing within 30 days after the receipt of the form is considered to be approved, and payment shall be made within 30 days.

(7) Warranty service audits of franchisee records may be conducted by the franchisor on a reasonable basis.

(8) A franchisee's claim for warranty compensation may not be denied except for good cause such as performance of nonwarranty repairs, lack of material documentation, fraud, or misrepresentation.

(9)

(a) Any charge backs for warranty parts or service compensation and service incentives shall only be enforceable for the 12-month period immediately following the date the payment for warranty reimbursement was made by the franchisor.

(b) Except as provided in Subsection (9)(c), all charge backs levied by a franchisor for sales compensation or sales incentives arising out of the sale or lease of a powersport vehicle sold by a franchisee shall be compensable only if written notice of the charge back is received by the franchisee within 24 months immediately following the date when payment for the sales compensation was made by the franchisor.

(c) The time limitations of this Subsection (9) do not preclude charge backs for any fraudulent claim that was previously paid.

§ 13-35-205 Liability for damages to motor vehicles in transit -- Disclosure required.

(1)

(a) A franchisee is solely liable for damage to a new powersport vehicle after delivery by and acceptance from the carrier.

(b) A delivery receipt or bill of lading, or similar document, signed by a franchisee is evidence of a franchisee's acceptance of a new powersport vehicle.

(2) A franchisor is liable for all damage to a powersport vehicle before delivery to and acceptance by the franchisee, including that time in which the vehicle is in the control of a carrier or transporter.

(3) A franchisor shall disclose to the franchisee any repairs made prior to delivery, only if the cost of the repair exceeds 3% of the manufacturer's wholesale price, as measured by retail repair costs.

(4) Notwithstanding Subsections (1), (2), and (3), the franchisee is liable for damage to a new powersport vehicle after delivery to the carrier or transporter if the franchisee selected:

(a) the method and mode of transportation; and

(b) the carrier or transporter.

Part 3 Restrictions on Termination, Relocation, and Establishment of Franchises

§ 13-35-301 Termination or noncontinuance of franchise.

(1) Except as provided in Subsection (2), a franchisor may not terminate or refuse to continue a franchise agreement unless:

(b) the franchisor has good cause for termination or noncontinuance; and

(2) A franchisor may terminate a franchise, without complying with Subsection (1):

(a) if for a particular line-make the franchisor or manufacturer discontinues that line-make;

(b) if the franchisee's registration as a new powersport vehicle dealer is revoked under Section 13-35-105; or

(3)

(b) A termination or noncontinuance subject to a hearing under Subsection (3)(a) may not become effective until:

(i) final determination of the issue by the executive director; and

(ii) the applicable appeal period has lapsed.

§ 13-35-302 Issuance of additional franchises -- Relocation of existing franchisees.

(1)

(a) Except as provided in Subsection (2), a franchisor shall comply with Subsection (1)(b) if the franchisor seeks to:

(i) enter into a franchise establishing a powersport vehicle dealership within a relevant market area where the same line-make is represented by another franchisee; or

(ii) relocate an existing powersport vehicle dealership.

(b)

(i) If a franchisor seeks to take an action listed in Subsection (1)(a), prior to taking the action, the franchisor shall in writing notify the executive director and each franchisee in that line-make in the relevant market area that the franchisor intends to take an action described in Subsection (1)(a).

(ii) The notice required by Subsection (1)(b)(i) shall:

(A) specify the good cause on which it intends to rely for the action; and

(B) be delivered by registered or certified mail or by any form of reliable delivery through which receipt is verifiable.

(c) Within 45 days of receiving notice required by Subsection (1)(b), any franchisee that is required to receive notice under Subsection (1)(b) may protest to the executive director the establishing or relocating of the dealership. When a protest is filed, the department shall inform the franchisor that:

(i) a timely protest has been filed;

(ii) a hearing is required;

(iii) the franchisor may not establish or relocate the proposed dealership until the executive director has held a hearing; and

(d) If multiple protests are filed under Subsection (1)(c), hearings may be consolidated to expedite the disposition of the issue.

(2) Subsection (1) does not apply to the relocation of a franchisee's dealership:

(a) less than two miles from the existing location of the franchisee's dealership; or

(b) farther away from all powersport dealerships that are:

(i) of the same line-make as the franchisee's dealership; and

(ii) in the franchisee's existing dealership's relevant market area.

(3) For purposes of this section:

(a) relocation of an existing franchisee's dealership in excess of one mile from its existing location is considered the establishment of an additional franchise in the line-make of the relocating franchise;

(b) the reopening in a relevant market area of a dealership that has not been in operation for one year or more is considered the establishment of an additional powersport vehicle dealership; and

(c)

(i) except as provided in Subsection (3)(c)(ii), the establishment of a temporary additional place of business by a powersport vehicle franchisee is considered the establishment of an additional powersport vehicle dealership; and

(ii) the establishment of a temporary additional place of business by a powersport vehicle franchisee is not considered the establishment of an additional powersport vehicle dealership if the powersport vehicle franchisee is participating in a trade show where three or more powersport vehicle dealers are participating.

§ 13-35-303 Effect of terminating a franchise.

If under Section 13-35-301 the executive director permits a franchisor to terminate or not continue a franchise and prohibits the franchisor from entering into a franchise for the sale of new powersport vehicles of a line-make in a relevant market area, the franchisor may not enter into a franchise for the sale of new powersport vehicles of that line-make in the specified relevant market area unless the executive director determines that there has been a change of circumstances so that the relevant market area at the time of the establishment of the new franchise agreement can reasonably be expected to support the new franchisee.

§ 13-35-304 Hearing regarding termination, relocation, or establishment of franchises.

(1)

(a) Within 10 days of receiving an application from a franchisee under Subsection 13-35-301(3) challenging its franchisor's right to terminate or not continue a franchise, or an application under Subsection 13-35-302(1) challenging the establishment or relocation of a franchise, the executive director shall:

(i) enter an order designating the time and place for the hearing; and

(ii) send a copy of the order by certified or registered mail, with return receipt requested, or by any form of reliable delivery through which receipt is verifiable to:

(A) the applicant;

(B) the franchisor; and

(C) if the application involves the establishment of a new franchise or the relocation of an existing dealership, to all franchisees in the relevant market area engaged in the business of offering to sell or lease the same line-make.

(b) A copy of an order mailed under Subsection (1)(a) shall be addressed to the franchisee at the place where the franchisee's business is conducted.

(2) Any person who can establish an interest in the application may intervene as a party to the hearing, whether or not that person receives notice.

(3) Any person may appear and testify on the question of the public interest in the termination or noncontinuation of a franchise or in the establishment of an additional franchise.

(4)

(a)

(i) Any hearing ordered under Subsection (1) shall be conducted no later than 120 days after the application for hearing is filed.

(ii) A final decision on the challenge shall be made by the executive director no later than 30 days after the hearing.

(i) the delay is caused by acts of the franchisor or the additional or relocating franchisee; or

(ii) the delay is waived by the parties.

(5) The franchisor has the burden of proof to establish that under this chapter it should be granted permission to:

(a) terminate or not continue the franchise;

(b) enter into a franchise agreement establishing an additional franchise; or

§ 13-35-305 Evidence to be considered in determining cause to terminate or discontinue.

(1) In determining whether a franchisor has established good cause for terminating or not continuing a franchise agreement, the executive director shall consider:

(a) the amount of business transacted by the franchisee, as compared to business available to the franchisee;

(b) the investment necessarily made and obligations incurred by the franchisee in the performance of the franchisee's part of the franchise agreement;

(d) whether it is injurious or beneficial to the public welfare or public interest for the business of the franchisee to be disrupted;

(e) whether the franchisee has adequate powersport vehicle sales and service facilities, equipment, vehicle parts, and qualified service personnel to reasonably provide for the needs of the consumer for the new powersport vehicles handled by the franchisee and has been and is rendering adequate services to the public;

(g) failure by the franchisee to substantially comply with those requirements of the franchise agreement that are determined by the executive director to be:

(i) reasonable;

(ii) material; and

(iii) not in violation of this chapter;

(h) evidence of bad faith by the franchisee in complying with those terms of the franchise agreement that are determined by the executive director to be:

(i) reasonable;

(ii) material; and

(iii) not in violation of this chapter;

(i) prior misrepresentation by the franchisee in applying for the franchise;

(j) transfer of any ownership or interest in the franchise without first obtaining approval from the franchisor or the executive director; and

(k) any other factor the executive director considers relevant.

(2) Notwithstanding any franchise agreement, the following do not constitute good cause, as used in this chapter for the termination or noncontinuation of a franchise:

(a) the sole fact that the franchisor desires:

(i) greater market penetration; or

(ii) more sales or leases of new powersport vehicles;

(c) the fact that the franchisee has justifiably refused or declined to participate in any conduct covered by Section 13-35-201.

§ 13-35-306 Evidence to be considered in determining cause to relocate existing franchisee or establish a new franchised dealership.

(1) the amount of business transacted by other franchisees of the same line-make in that relevant market area, as compared to business available to the franchisees;

(2) the investment necessarily made and obligations incurred by other franchisees of the same line-make in that relevant market area in the performance of their part of their franchisee agreements;

(3) the permanency of the existing and proposed investment;

(4) whether it is injurious or beneficial to the public welfare or public interest for an additional franchise to be established; and

(5) whether the franchisees of the same line-make in that relevant market area are providing adequate service to consumers for the powersport vehicles of the line-make, which shall include the adequacy of:

(a) the powersport vehicle sale and service facilities;

(b) equipment;

(d) qualified service personnel.

§ 13-35-307 Franchisor's repurchase obligations upon termination or noncontinuation of franchise.

(1)

(a) Except as provided in Subsection (1)(b), if a franchise is terminated or not continued by the franchisor or franchisee, the franchisor shall pay the franchisee:

(i) the franchisee's cost of new, undamaged, unsold, and unregistered powersport vehicles in the franchisee's inventory acquired from the franchisor or another franchisee of the same line-make and invoiced during the 30-month period immediately before the franchise is terminated or not continued;

(ii) any charges made by the franchisor for distribution, delivery, or taxes;

(iii) the franchisee's cost of any accessories added on a vehicle;

(iv) the cost of new, undamaged, and unsold supplies, parts, and accessories as set forth in the franchisor's catalog at the time of termination or noncontinuation less all allowances paid or credited to the franchisee by the franchisor;

(v) except as provided in Subsection (1)(c), the fair market value, but not less than the franchisee's depreciated acquisition cost, of each undamaged sign owned by the franchisee that bears a common name, trade name, or trademark of the franchisor if acquisition of the sign was recommended or required by the franchisor;

(vi) the fair market value, but not less than the franchisee's depreciated acquisition cost, of all special tools, equipment, and furnishings acquired from the franchisor or sources approved by the franchisor that were recommended or required by the franchisor and are in good and usable condition; and

(vii) the cost of transporting, handling, packing, and loading powersport vehicles, supplies, parts, accessories, signs, special tools, equipment, and furnishings.

(b) The franchisor may deduct the sum of all allowances paid or credited to the franchisee by the franchisor from the amount owed under Subsection (1)(a).

(c) If a franchisee has a sign with multiple manufacturers listed, the franchisor shall pay only for its pro rata portion of the sign described in Subsection (1)(a)(v).

(2) The franchisor shall pay the franchisee the amounts specified in Subsection (1) within 90 days after the tender of the property to the franchisor if the franchisee has:

(a) clear title to the property; or

(b) the manufacturer's statement of origin.

(3) If repurchased inventory and equipment are subject to a security interest, the franchisor may make payment jointly to the franchisee and to the holder of the security interest.

Chapter 37 Notice of Intent to Sell Nonpublic Personal Information Act

Part 1 General Provisions

§ 13-37-101 Title.

This chapter is known as the "Notice of Intent to Sell Nonpublic Personal Information Act."

§ 13-37-102 Definitions.

As used in this chapter:

(1) "Affiliate" means a person that controls, is controlled by, or is under common control with:

(a) a commercial entity; and

(b)

(i) directly; or

(ii) indirectly through one or more intermediaries.

(2)

(a) Subject to Subsection (2)(b), "commercial entity" means a person that:

(i) maintains a physical office in the state; and

(ii) in the ordinary course transacts business at the physical office with consumers located in the state.

(b) "Commercial entity" does not include:

(i) a governmental entity; or

(ii) an entity providing services on behalf of a governmental entity.

(3) "Compensation" means anything of economic value that is paid or transferred to a commercial entity for or in direct consideration of the disclosure of nonpublic personal information.

(4)

(a) "Consumer transaction" means:

(i) a sale, lease, assignment, award by chance, or other written or oral transfer or disposition:

(A) that is initiated or completed in this state; and

(B) of:

(I) goods;

(II) services; or

(III) other tangible or intangible property, except securities and insurance or services related thereto; or

(ii) a transaction:

(A) that is initiated or completed in this state; and

(B) that constitutes credit offered or extended by a commercial entity to a person primarily for personal, family, or household purposes.

(b) "Consumer transaction" includes:

(i) the use of nonpublic personal information in relation to a transaction with a person if the transaction is for primarily personal, family, or household purposes; and

(ii) with respect to any transaction described in Subsection (4)(a):

(A) an offer or solicitation;

(B) an agreement;

(D) a charitable solicitation as defined in Section 13-11-3.

(5)

(a) "Nonpublic personal information" means information that:

(i) is not public information; and

(ii) either alone or in conjunction with public information, identifies a person in distinction from other persons.

(b) "Nonpublic personal information" includes:

(i) a person's Social Security number;

(ii) information used to determine a person's credit worthiness including a person's:

(A) income; or

(B) employment history;

(iii) the purchasing patterns of a person; or

(iv) the personal preferences of a person.

(6)

(a) "Physical office" means a location:

(i) accessible to the public during normal business hours;

(ii) staffed by one or more individuals who conduct business on behalf of the commercial entity; and

(iii) used for the primary purpose of transacting business with consumers in the state.

(b) "Physical office" does not include a post office box, mailing address, registered agent, or virtual office that a person solely relies on for business correspondence.

(7) "Public information" means a person's:

(a) name;

(b) telephone number; or

(8)

(a) Subject to Subsection (8)(b), "third party" means a person other than the commercial entity that obtains nonpublic personal information.

(b) "Third party" does not include an affiliate or agent of the commercial entity that obtains nonpublic personal information.

Part 2 Notice of Disclosure

§ 13-37-201 Required notice.

(1)

(a) In accordance with this section, a commercial entity shall provide the notice described in this section to a person if:

(i) the commercial entity enters into a consumer transaction with that person;

(ii) as a result of the consumer transaction described in this Subsection (1)(a), the commercial entity obtains nonpublic personal information concerning that person; and

(iii) the commercial entity intends to or wants the ability to disclose the nonpublic personal information:

(A) to a third party; and

(B) for compensation; and

(iv) the compensation described in Subsection (1)(a)(iii)(B):

(A) is the primary consideration for the commercial entity disclosing the nonpublic personal information;

(B) is directly related to the commercial entity disclosing the nonpublic personal information; and

(b) For purposes of this chapter, a commercial entity is considered to have obtained information as a result of a consumer transaction if:

(i) the person provides the information to the commercial entity:

(A) at any time during the consumer transaction; and

(B) at the request of the commercial entity; or

(ii)

(A) the commercial entity otherwise obtains the information; and

(B) but for the consumer transaction, the commercial entity would not obtain the information.

(2) The notice required by Subsection (1) shall be given before the earlier of:

(a) the point at which the person is requested to provide the nonpublic personal information; or

(b) the commercial entity otherwise obtains the nonpublic personal information as a result of the consumer transaction described in Subsection (1)(a).

(3) The notice required by Subsection (1):

(a) shall read substantially as follows: "We may choose to disclose nonpublic personal information about you, the consumer, to a third party for compensation.";

(b) may be made:

(i) orally, if the consumer transaction itself is entirely conducted orally; or

(ii) in writing, if the notice is written in dark bold; and

(c) shall be sufficiently conspicuous so that a reasonable person would perceive the notice before providing the nonpublic personal information.

(4) This chapter does not apply to:

(a) a commercial entity that is subject to a federal law or regulation that governs the disclosure of nonpublic information to a third party; or

(b) a covered entity as defined in 45 C.F.R. Parts 160 and 164.

(5) Notwithstanding the other provisions of this section, a commercial entity is not required to provide notice under this section if:

(a) the disclosure of the nonpublic personal information is related to the third party providing to the commercial entity:

(i) services, including business outsource services;

(ii) personal or real property; or

(iii) other thing of value; and

(b) compensation received by the commercial entity as part of the transaction is received by the commercial entity for or in consideration of the transaction described in Subsection (5)(a).

§ 13-37-202 Disclosure of nonpublic personal information prohibited without notice.

(1) A commercial entity may not disclose nonpublic personal information that the commercial entity obtained on or after January 1, 2004, as a result of a consumer transaction if the commercial entity fails to comply with Section 13-37-201.

(2) This chapter may not be interpreted as authorizing a commercial entity to disclose nonpublic personal information to a greater extent than the commercial entity is otherwise permitted to disclose nonpublic personal information.

§ 13-37-203 Liability and remedy.

(1) As a person's only remedy under this chapter, a person may bring an individual action, not a class action or act in a representative capacity, against a commercial entity in a federal or state court with jurisdiction if:

(a) the commercial entity enters into a consumer transaction with that person;

(b) as a result of the consumer transaction described in Subsection (1)(a), the commercial entity obtains nonpublic personal information concerning that person; and

(2) In an action brought under Subsection (1), a commercial entity that violates this chapter is liable to the person individually, but not to a class or to a person in a representative capacity, who brings the action for:

(a) $500 for each time the commercial entity fails to provide the notice required by this section in relation to the nonpublic personal information of the person who brings the action; and

(b) court costs.

(3) An action for a violation of this chapter may only be brought in accordance with Section 78B-2-302 within one year from the day of the consumer transaction at issue.

(4) The Legislature finds that since January 1, 2004, the prohibition on bringing a class action is a remedy provision and not merely procedural.

Chapter 38a Financial Transaction Card Protection Act

Part 1 General Provisions

§ 13-38a-101 Title.

(1) This chapter is known as the "Financial Transaction Card Protection Act."

(2) This part is known as "General Provisions."

§ 13-38a-102 Definitions.

As used in this chapter:

(1)

(a) "Financial transaction card" means any card, code, or other means of access to a person's account issued to a person that allows the person to obtain, purchase, or receive any of the following:

(i) goods;

(ii) services;

(iii) money; or

(iv) anything else of value.

(b) "Financial transaction card" includes:

(i) a credit card;

(ii) a credit plate;

(iii) a bank services card;

(iv) a banking card;

(v) a check guarantee card;

(vi) a debit card;

(vii) a telephone credit card; and

(viii) a device for access as defined in Section 7-16a-102.

(2) "Receipt" means any document related to the transaction of business provided to a person that uses a financial transaction card.

Part 2 Financial Transaction Card Receipts

§ 13-38a-201 Title.

This part is known as "Financial Transaction Card Receipts."

§ 13-38a-202 Limitation on information contained in receipts.

(1) A person that accepts a financial transaction card for the transaction of business may not, on a financial transaction card receipt:

(a) print more than the last five digits of the financial transaction card account number; or

(b) print the financial transaction card expiration date.

(2)

(a) This section applies only to receipts that are electronically printed.

(b) This section does not apply to transactions in which the initial means of recording the financial transaction card number is by:

(i) handwriting; or

(ii) an imprint or copy of the financial transaction card.

§ 13-38a-203 Private action.

(1) A person may bring an action in any state court of competent jurisdiction against a person that violates any of the requirements of this chapter.

(2) In an action under Subsection (1), a person may:

(a) recover the amount of any actual damages caused by the violation of this chapter;

(b) recover court costs and reasonable attorney fees as determined by the court; and

Chapter 39 Child Protection Registry

Part 1 General Provisions

§ 13-39-101 Title.

This chapter is known as the "Child Protection Registry."

§ 13-39-102 Definitions.

As used in this chapter:

(1) "Attorney general" means the same as that term is defined in Section 77-42-102.

(2) "Contact point" means an electronic identification to which a communication may be sent, including:

(a) an email address;

(b) an instant message identity, subject to rules made by the unit under Subsection 13-39-203(1);

(d) a facsimile number; or

(e) an electronic address:

(i) similar to a contact point listed in this Subsection (2); and

(ii) defined as a contact point by rule made by the unit under Subsection 13-39-203(1).

(3) "Registry" means the child protection registry established in Section 13-39-201.

(4) "Unit" means the Internet Crimes Against Children unit within the Office of the Attorney General created in Section 67-5-21.

Part 2 Operation of the Child Protection Registry

§ 13-39-201 Establishment of child protection registry.

(1) The unit shall:

(a) establish and operate a child protection registry to compile and secure a list of contact points the unit has received pursuant to this section; or

(b) contract with a third party to establish and secure the registry described in Subsection (1)(a).

(2)

(a) A person may register a contact point with the unit pursuant to rules established by the unit under Subsection 13-39-203(1) if:

(i) the contact point belongs to a minor;

(ii) a minor has access to the contact point; or

(iii) the contact point is used in a household in which a minor is present.

(b) A school or other institution that primarily serves minors may register its domain name with the unit pursuant to rules made by the unit under Subsection 13-39-203(1).

(c) The unit shall provide a disclosure in a confirmation message sent to a person who registers a contact point under this section that reads: "No solution is completely secure. The most effective way to protect children on the Internet is to supervise use and review all email messages and other correspondence. Under law, theft of a contact point from the Child Protection Registry is a second degree felony. While every attempt will be made to secure the Child Protection Registry, registrants and their guardians should be aware that their contact points may be at a greater risk of being misappropriated by marketers who choose to disobey the law."

(3) A person desiring to send a communication described in Subsection 13-39-202(1) to a contact point or domain shall:

(a) use a mechanism established by rule made by the unit under Subsection 13-39-203(2); and

(b) pay a fee for use of the mechanism described in Subsection (3)(a) determined by the unit in accordance with Section 63J-1-504.

(4) The unit may implement a program to offer discounted compliance fees to senders who meet enhanced security conditions established and verified by the division, the third party registry provider, or a designee.

(5) The contents of the registry, and any complaint filed about a sender who violates this chapter, are not subject to public disclosure under Title 63G, Chapter 2, Government Records Access and Management Act.

(6) The state shall promote the registry on the state's official Internet website.

§ 13-39-202 Prohibition of sending certain materials to a registered contact point -- Exception for consent.

(1) A person may not send, cause to be sent, or conspire with a third party to send a communication to a contact point or domain that has been registered for more than 30 calendar days with the unit under Section 13-39-201 if the communication:

(a) has the primary purpose of advertising or promoting a product or service that a minor is prohibited by law from purchasing; or

(b) contains or has the primary purpose of advertising or promoting material that is harmful to minors, as defined in Section 76-5c-101.

(2) Except as provided in Subsection (4), consent of a minor is not a defense to a violation of this section.

(3) An Internet service provider does not violate this section for solely transmitting a message across the network of the Internet service provider.

(4)

(a) Notwithstanding Subsection (1), a person may send a communication to a contact point if, before sending the communication, the person sending the communication receives consent from an adult who controls the contact point.

(b) Any person who proposes to send a communication under Subsection (4)(a) shall:

(i) verify the age of the adult who controls the contact point by inspecting the adult's government-issued identification card in a face-to-face transaction;

(ii) obtain a written record indicating the adult's consent that is signed by the adult;

(iii) include in each communication:

(A) a notice that the adult may rescind the consent; and

(B) information that allows the adult to opt out of receiving future communications; and

(iv) notify the unit that the person intends to send communications under this Subsection (4).

(c) The unit shall implement rules to verify that a person providing notification under Subsection (4)(b)(iv) complies with this Subsection (4).

§ 13-39-203 Rulemaking authority.

In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the unit shall make rules to establish procedures under which:

(1)

(a) a person may register a contact point with the unit under Section 13-39-201, including:

(i) the information necessary to register an instant message identity; and

(ii) for purposes of Subsection 13-39-102(2)(e), an electronic address that is similar to a contact point listed in Subsection 13-39-102(2); and

(b) a school or other institution that primarily serves minors may register its domain name with the unit under Section 13-39-201;

(2) the unit shall:

(a) provide a mechanism under which a person described in Subsection 13-39-201(3) may verify compliance with the registry to remove registered contact points from the person's communications; and

(b) establish the mechanism described in Subsection (2)(a) in a manner that protects the privacy and security of a contact point registered with the unit under Section 13-39-201; and

(3) the unit may:

(a) implement a program offering discounted fees to a sender who meets enhanced security conditions established and verified by the unit, the third party registry provider, or a designee; and

(b) allow the third party registry provider to assist in any public or industry awareness campaign promoting the registry.

Part 3 Enforcement

§ 13-39-301 Criminal penalty.

(1) A person who violates Section 13-39-202 commits a computer crime and is guilty of a:

(a) class B misdemeanor for a first offense with respect to a contact point registered with the unit under Subsection 13-39-201(2)(a); and

(b) class A misdemeanor:

(i) for each subsequent violation with respect to a contact point registered with the unit under Subsection 13-39-201(2)(a); or

(ii) for each violation with respect to a domain name registered with the unit under Subsection 13-39-201(2)(b).

(2) A person commits a computer crime and is guilty of a second degree felony if the person:

(a) uses information obtained from the unit under this chapter to violate Section 13-39-202;

(b) improperly:

(i) obtains contact points from the registry; or

(ii) attempts to obtain contact points from the registry; or

(3) A criminal conviction or penalty under this section does not relieve a person from civil liability in an action under Section 13-39-302.

(4) Each communication sent in violation of Section 13-39-202 is a separate offense under this section.

§ 13-39-302 Civil action for violation.

(1) For a violation of Section 13-39-202, an action may be brought by:

(a) a user of a contact point or domain name registered with the division under Section 13-39-201; or

(b) a legal guardian of a user described in Subsection (1)(a).

(2) In each action under Subsection (1):

(a) a person described in Subsection (1) may recover the greater of:

(i) actual damages; or

(ii) $1,000 for each communication sent in violation of Section 13-39-202; and

(b) the prevailing party shall be awarded costs and reasonable attorney fees.

§ 13-39-303 Administrative enforcement.

(1) The attorney general:

(a) shall investigate violations of this chapter; and

(b) may bring an action against a person who violates this chapter.

(2) A person who violates this chapter is subject to:

(a) a cease and desist order or other injunctive relief; and

(b) a fine of not more than $2,500 for each separate communication sent in violation of Section 13-39-202.

(3)

(a) A person who intentionally violates this chapter is subject to a fine of not more than $5,000 for each communication intentionally sent in violation of Section 13-39-202.

(b) For purposes of this section, a person intentionally violates this chapter if the violation occurs after the attorney general or a district or county attorney notifies the person by certified mail that the person is in violation of this chapter.

§ 13-39-304 Defenses.

It is a defense to an action brought under this chapter that a person:

(1) reasonably relied on the mechanism established by the unit under Subsection 13-39-203(2); and

(2) took reasonable measures to comply with this chapter.

Chapter 40 Utah E-Commerce Integrity Act

Part 1 General Provisions

§ 13-40-101 Title.

This chapter is known as the "Utah E-Commerce Integrity Act."

§ 13-40-102 Definitions.

As used in this chapter:

(1)

(a) "Cause to be copied" means to distribute or transfer computer software, or any component of computer software.

(b) "Cause to be copied" does not include providing:

(i) transmission, routing, intermediate temporary storage, or caching of software;

(ii) a storage or hosting medium, such as a compact disk, website, or computer server through which the software was distributed by a third party; or

(iii) an information location tool, such as a directory, index, reference, pointer, or hypertext link, through which the user of the computer located the software.

(2)

(a) "Computer software" means a sequence of instructions written in any programming language that is executed on a computer.

(b) "Computer software" does not include a data component of a webpage that is not executable independently of the webpage.

(3) "Computer virus" means a computer program or other set of instructions that is designed to degrade the performance of or disable a computer or computer network and is designed to have the ability to replicate itself on another computer or computer network without the authorization of the owner of the other computer or computer network.

(4) "Damage" means any significant impairment to the:

(a) performance of a computer; or

(b) integrity or availability of data, software, a system, or information.

(5) "Execute," when used with respect to computer software, means the performance of the functions or the carrying out of the instructions of the computer software.

(6) "False pretenses" means the representation of a fact or circumstance that is not true and is calculated to mislead.

(7)

(a) "Identifying information" means any information that can be used to access a person's financial accounts or to obtain goods and services, including the person's:

(i) address;

(ii) birth date;

(iii) Social Security number;

(iv) driver license number;

(v) non-driver governmental identification number;

(vi) telephone number;

(vii) bank account number;

(viii) student identification number;

(ix) credit or debit card number;

(x) personal identification number;

(xi) unique biometric data;

(xii) employee or payroll number;

(xiii) automated or electronic signature;

(xiv) computer image file;

(xv) photograph; or

(xvi) computer screen name or password.

(b) "Identifying information" does not include information that is lawfully obtained from publicly available information, or from federal, state, or local government records lawfully made available to the general public.

(8) "Intentionally deceptive" means any of the following:

(a) an intentionally and materially false or fraudulent statement;

(b) a statement or description that intentionally omits or misrepresents material information in order to deceive an owner or operator of a computer; or

(c) an intentional and material failure to provide a notice to an owner or operator concerning the installation or execution of computer software, for the purpose of deceiving the owner or operator.

(9) "Internet" means the global information system that is logically linked together by a globally unique address space based on the Internet protocol (IP), or its subsequent extensions, and that is able to support communications using the transmission control protocol/Internet protocol (TCP/IP) suite, or its subsequent extensions, or other IP-compatible protocols, and that provides, uses, or makes accessible, either publicly or privately, high-level services layered on communications and related infrastructure.

(10) "Internet service provider" means:

(a) an Internet service provider, as defined in Section 76-5c-401; or

(b) a hosting company, as defined in Section 76-5c-401.

(11) "Message" means a graphical or text communication presented to an authorized user of a computer.

(12)

(a) "Owner or operator" means the owner or lessee of a computer, or a person using a computer with the owner's or lessee's authorization.

(b) "Owner or operator" does not include a person who owned a computer before the first retail sale of the computer.

(13) "Person" means any individual, partnership, corporation, limited liability company, or other organization, or any combination thereof.

(14) "Personally identifiable information" means any of the following information if it allows the entity holding the information to identify the owner or operator of a computer:

(a) the first name or first initial in combination with the last name and a home or other physical address including street name;

(b) a personal identification code in conjunction with a password required to access an identified account, other than a password, personal identification number, or other identification number transmitted by an authorized user to the issuer of the account or its agent;

(c) a Social Security number, tax identification number, driver license number, passport number, or any other government-issued identification number; or

(d) an account balance, overdraft history, or payment history that personally identifies an owner or operator of a computer.

(15) "Webpage" means a location that has a single uniform resource locator (URL) with respect to the World Wide Web or another location that can be accessed on the Internet.

§ 13-40-103 Application of chapter.

This chapter applies to conduct involving a computer, software, or an advertisement located in, sent to, or displayed in this state.

Part 2 Phishing and Pharming

§ 13-40-201 Phishing and pharming.

(1) A person is guilty of phishing if, with intent to defraud or injure an individual, or with knowledge that the person is facilitating a fraud or injury to be perpetrated by another:

(a) the person makes a communication under false pretenses purporting to be by or on behalf of a legitimate business, without the authority or approval of the legitimate business; and

(b) the person uses the communication to induce, request, or solicit another person to provide identifying information or property.

(2) A person is guilty of pharming if, with intent to defraud or injure another, or with knowledge that the person is facilitating a fraud or injury to be perpetrated by another, the person:

(a) creates or operates a webpage that represents itself as belonging to or being associated with a legitimate business, without the authority or approval of the legitimate business, if that webpage may induce any user of the Internet to provide identifying information or property; or

(b) alters a setting on a user's computer or similar device or software program through which the user may search the Internet, causing any user of the Internet to view a communication that represents itself as belonging to or being associated with a legitimate business, if the message has been created or is operated without the authority or approval of the legitimate business and induces, requests, or solicits any user of the Internet to provide identifying information or property.

§ 13-40-202 Removal of domain name or content -- Liability.

If an Internet registrar or Internet service provider believes in good faith that an Internet domain name controlled or operated by the Internet registrar or Internet service provider, or content residing on an Internet website or other online location controlled or operated by the Internet registrar or Internet service provider, is used to engage in a violation of this part, the Internet registrar or Internet service provider is not liable under any provision of the laws of this state or of any political subdivision of the state for removing or disabling access to the Internet domain name or other content.

§ 13-40-203 Application of part.

(1) This part applies to the discovery of a phishing or pharming incident that occurs on or after July 1, 2010.

(2) This part does not apply to a telecommunications provider's or Internet service provider's good faith transmission or routing of, or intermediate temporary storing or caching of, identifying information.

§ 13-40-204 Relation to other law.

The conduct prohibited by this part is of statewide concern, and this part's provisions supersede and preempt any provision of law of a political subdivision of the state.

Part 3 Spyware Protection

§ 13-40-301 Prohibition on the use of software.

A person who is not an owner or operator of a computer may not cause computer software to be copied on the computer knowingly, with conscious avoidance of actual knowledge, or willfully, if the software is used to:

(1) modify, through intentionally deceptive means, settings of a computer controlling:

(a) the webpage that appears when an owner or operator launches an Internet browser or similar computer software used to access and navigate the Internet;

(b) the default provider or web proxy that an owner or operator uses to access or search the Internet; or

(2) collect, through intentionally deceptive means, personally identifiable information:

(a) through the use of a keystroke-logging function that records all or substantially all keystrokes made by an owner or operator of a computer and transfers that information from the computer to another person;

(b) in a manner that correlates personally identifiable information with data concerning all or substantially all of the webpages visited by an owner or operator, other than webpages operated by the person providing the software, if the computer software was installed in a manner designed to conceal from all authorized users of the computer the fact that the software is being installed; or

(c) by extracting from the hard drive of an owner's or an operator's computer, an owner's or an operator's Social Security number, tax identification number, driver license number, passport number, any other government-issued identification number, an account balance, or overdraft history for a purpose unrelated to any of the purposes of the software or service described to an authorized user;

(3) prevent, through intentionally deceptive means, an owner's or an operator's reasonable efforts to block or disable the installation or execution of computer software by causing computer software that the owner or operator has properly removed or disabled to automatically reinstall or reactivate on the computer without the authorization of an authorized user;

(4) intentionally misrepresent that computer software will be uninstalled or disabled by an owner's or an operator's action;

(5) through intentionally deceptive means, remove, disable, or render inoperative security, antispyware, or antivirus computer software installed on an owner's or an operator's computer;

(6) enable use of an owner's or an operator's computer to:

(a) access or use a modem or Internet service for the purpose of causing damage to an owner's or an operator's computer or causing an owner or operator, or a third party affected by that conduct, to incur financial charges for a service that the owner or operator did not authorize;

(b) open multiple, sequential, stand-alone messages in an owner's or an operator's computer without the authorization of an owner or operator and with knowledge that a reasonable computer user could not close the messages without turning off the computer or closing the software application in which the messages appear, unless the communication originated from the computer's operating system, a software application the user activated, or a service provider that the user chose to use, or was presented for any of the purposes described in Section 13-40-303; or

(c) transmit or relay commercial electronic mail or a computer virus from the computer, if the transmission or relay is initiated by a person other than the authorized user without the authorization of an authorized user;

(7) modify, without the authorization of an owner or operator, any of the following settings related the computer's access to, or use of, the Internet:

(a) settings that protect information about an owner or operator for the purpose of taking personally identifiable information of the owner or operator;

(b) security settings, for the purpose of causing damage to a computer; or

(8) prevent, without the authorization of an owner or operator, an owner's or an operator's reasonable efforts to block the installation of, or to disable, computer software by:

(a) presenting the owner or operator with an option to decline installation of computer software with knowledge that, when the option is selected by the authorized user, the installation nevertheless proceeds;

(b) falsely representing that computer software has been disabled;

(c) requiring in an intentionally deceptive manner the user to access the Internet to remove the software with knowledge or reckless disregard of the fact that the software frequently operates in a manner that prevents the user from accessing the Internet;

(d) changing the name, location, or other designation information of the software for the purpose of preventing an authorized user from locating the software to remove it;

(e) using randomized or intentionally deceptive filenames, directory folders, formats, or registry entries for the purpose of avoiding detection and removal of the software by an authorized user;

(f) causing the installation of software in a particular computer directory or in computer memory for the purpose of evading an authorized user's attempt to remove the software from the computer; or

(g) requiring, without the authority of the owner of the computer, that an authorized user obtain a special code or download software from a third party to uninstall the software.

§ 13-40-302 Other prohibited conduct.

A person who is not an owner or operator of a computer may not, with regard to the computer:

(1) induce an owner or operator to install a computer software component onto the owner's or the operator's computer by intentionally misrepresenting that installing the computer software is necessary for security or privacy reasons or in order to open, view, or play a particular type of content; or

(2) use intentionally deceptive means to cause the execution of a computer software component with the intent of causing the computer to use the computer software component in a manner that violates any other provision of this chapter.

§ 13-40-303 Exceptions.

Sections 13-40-301 and 13-40-302 do not apply to the monitoring of, or interaction with, an owner's or an operator's Internet or other network connection, service, or computer, by a telecommunications carrier, cable operator, computer hardware or software provider, or provider of information service or interactive computer service for network or computer security purposes, diagnostics, technical support, maintenance, repair, network management, authorized updates of computer software or system firmware, authorized remote system management, or detection or prevention of the unauthorized use of or fraudulent or other illegal activities in connection with a network, service, or computer software, including scanning for and removing computer software prescribed under this chapter.

Part 4 Enforcement

§ 13-40-401 Phishing and pharming violations.

(1) A civil action against a person who violates any provision of Part 2, Phishing and Pharming, may be filed by:

(a) an Internet service provider that is adversely affected by the violation;

(b) an owner of a webpage, computer server, or a trademark that is used without authorization in the violation; or

(2) A person permitted to bring a civil action under Subsection (1) may obtain either actual damages for a violation of this chapter or a civil penalty not to exceed $150,000 per violation of Part 2, Phishing and Pharming.

(3) A violation of Part 2, Phishing and Pharming, by a state-chartered or licensed financial institution is enforceable exclusively by the financial institution's primary state regulator.

§ 13-40-402 Spyware protection violations.

(1) The attorney general, an Internet service provider, or a software company that expends resources in good faith assisting authorized users harmed by a violation of Part 3, Spyware Protection, or a trademark owner whose mark is used to deceive authorized users in violation of Part 3, Spyware Protection, may bring a civil action against a person who violates Part 3, Spyware Protection, to recover:

(a) actual damages and liquidated damages of at least $1,000 per violation of Part 3, Spyware Protection, not to exceed $1,000,000 for a pattern or practice of violations; and

(b) attorney fees and costs.

(2) The court may increase a damage award to an amount equal to not more than three times the amount otherwise recoverable under Subsection (1) if the court determines that the defendant committed the violation willfully and knowingly.

(3) The court may reduce liquidated damages recoverable under Subsection (1) to a minimum of $100, not to exceed $100,000 for each violation, if the court finds that the defendant established and implemented practices and procedures reasonably designed to prevent a violation of Part 3, Spyware Protection.

(4) In the case of a violation of Subsection 13-40-301(6)(a) that causes a telecommunications carrier or provider of voice over Internet protocol service to incur costs for the origination, transport, or termination of a call triggered using the modem or Internet-capable device of a customer of the telecommunications carrier or provider of voice over Internet protocol as a result of the violation, the telecommunications carrier or provider of voice over Internet protocol may bring a civil action against the violator:

(a) to recover the charges the telecommunications carrier or provider of voice over Internet protocol is required to pay to another carrier or to an information service provider as a result of the violation, including charges for the origination, transport, or termination of the call;

(b) to recover the costs of handling customer inquiries or complaints with respect to amounts billed for the calls;

(d) for injunctive relief.

(5) For purposes of a civil action under Subsections (1), (2), and (3), a single action or conduct that violates more than one provision of Part 3, Spyware Protection, shall be considered as multiple violations based on the number of provisions violated.

Chapter 41 Price Controls During Emergencies Act

Part 1 General Provisions

§ 13-41-101 Title.

This chapter is known as the "Price Controls During Emergencies Act."

§ 13-41-102 Definitions.

For purposes of this chapter:

(1) "Consumer" means a person who seeks to acquire or acquires a good or service for consumption.

(2) "Division" means the Division of Consumer Protection.

(3)

(a) "Emergency territory" means the geographical area:

(i) for which there has been a state of emergency declared; and

(ii) that is directly affected by the events giving rise to a state of emergency.

(b) "Emergency territory" does not include a geographical area that is affected by the events giving rise to a state of emergency only by economic market forces.

(4) "Excessive price" means:

(a) for a person that sold the good or provided the service in the 30-day period immediately preceding the day on which a state of emergency is declared:

(i) a price for a good or service that exceeds by more than 10% the highest price the person charged for the good or service in the 30-day period immediately preceding the day on which the state of emergency is declared; or

(ii) if the person's total cost for the good or service exceeds the average total cost to the person for the good or service in the 30-day period immediately preceding the day on which the state of emergency is declared, a price that exceeds by more than 10% the sum of:

(A) the total cost to the person for the good or service; and

(B) the person's customary margin; or

(b) for a person that did not sell the good or provide the service in the 30-day period immediately preceding the day on which a state of emergency is declared, a price for a good or service that is more than twice the person's total cost for the good or service.

(5) "Good" means any personal property displayed, held, or offered for sale by a merchant that is necessary for consumption or use as a direct result of events giving rise to a state of emergency.

(6) "Margin" means the difference between the sale price and the total cost of the good or service.

(7) "Retail" means the level of distribution where a good or service is typically sold directly, or otherwise provided, to a member of the public who is an end user and does not resell the good or service.

(8) "Service" means any activity that is performed in whole or in part for the purpose of financial gain including personal service, professional service, rental, leasing, or licensing for use that is necessary for consumption or use as a direct result of events giving rise to a state of emergency.

(9) "State of emergency" means a declaration of:

(a) an emergency or major disaster by the president of the United States of America; or

(b) a state of emergency by the governor under Section 53-2a-206.

(10)

(a) "Total cost" means an amount equal to:

(i) the sum of all costs associated with a person obtaining a product or service and providing the product or service to a consumer, including fees, shipping, or employee labor; minus

(ii) any trade discount, cash discount, or manufacturer rebate.

(b) "Total cost" does not include an amount that incorporates an ongoing cost to operate a business that is not directly associated with a good or service.

Part 2 Excessive Prices Prohibited

§ 13-41-201 Excessive price prohibited.

(1) A person may not offer for sale, offer to provide, sell, or provide a good or service to a consumer at an excessive price, if:

(a) a state of emergency exists; and

(b) the person offers for sale, offers to provide, sells, or provides the good or service at retail:

(i)

(A) during the time period for which a state of emergency declared by the governor exists, if the state of emergency described in Subsection (1) is declared by the governor; or

(B) for 30 days after the day on which the state of emergency begins, if the state of emergency described in Subsection (1)(a) is declared by the president of the United States; and

(ii) within the emergency territory.

(2) A person may offer for sale, offer to provide, sell, or provide a good or service as otherwise prohibited under Subsection (1), if the person establishes that:

(a) the good or service is identical, similar, or comparable in nature to a good or service that the person sold or provided in the 30-day period immediately preceding the day on which the state of emergency described in Subsection (1)(a) is declared; and

(b) the person applies the same margin to the good or service as the margin applied to the identical, similar, or comparable good or service described in Subsection (2)(a) during the 30-day period immediately preceding the day on which the state of emergency described in Subsection (1)(a) is declared.

(3) Upon request of the division, a person allegedly offering for sale, offering to provide, selling, or providing a good or service at an excessive price in accordance with this chapter shall provide documentation to the division that the person is in compliance with this chapter.

§ 13-41-202 Enforcement -- Penalty.

(1) The division shall enforce this chapter.

(2) In determining whether to investigate, contact, or request information from a person in the enforcement of this chapter, the division shall consider:

(a) whether a complaint, information, or evidence reasonably justifies further division inquiry;

(b) the burden contact, investigation, or providing information places on the person;

(c) the result of a previous investigation of the person, including whether the previous investigation suggests that the person did not violate this chapter;

(d) whether the person may benefit from receiving information about requirements under this chapter; and

(e) the potential gravity of harm to consumers, considering price, availability, and volume of a good or service.

(3) In enforcing this chapter, the division may not publicly disclose the identity of a person the division investigates unless:

(a) the person's identity is a matter of public record in an enforcement proceeding; or

(b) the person consents to public disclosure.

(4) In determining whether to impose penalties against a person who violates this chapter, the division shall consider:

(a) the person's cost of doing business not accounted for in the total cost to the person for the good or service, including costs associated with a decrease in the supply available to a person who relies on a high volume of sales;

(b) the person's efforts to comply with this chapter;

(c) whether the average price charged by the person during the 30-day period immediately preceding the day on which the state of emergency is declared is artificially deflated because the good or service was on sale for a lower price than the person customarily charges for the good or service; and

(d) any other factor that the division considers appropriate.

(5)

(a) If the division finds that a person has violated, or is violating, this chapter, the division may:

(i) issue a cease and desist order; and

(ii) subject to Subsection (5)(b), impose an administrative fine for each violation of this chapter.

(b) Each instance of charging an excessive price under Section 13-41-201 constitutes a separate violation, but in no case shall the administrative fine imposed under Subsection (5)(a) exceed double the excessive portion of the price the person charged.

(6) The division may sue in a court of competent jurisdiction to enforce an order under Subsection (5).

(7) In a suit brought under Subsection (6), if the division prevails, the court may award the division:

(a) court costs;

(b) attorney fees; and

(8) All money received through an administrative fine imposed, or judgment obtained, under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-109.

Chapter 42 Uniform Debt-Management Services Act

§ 13-42-102 Definitions.

As used in this chapter:

(1) "Affiliate":

(a) with respect to an individual, means:

(i) the spouse of the individual;

(ii) a sibling of the individual or the spouse of a sibling;

(iii) an individual or the spouse of an individual who is a lineal ancestor or lineal descendant of the individual or the individual's spouse;

(iv) an aunt, uncle, great aunt, great uncle, first cousin, niece, nephew, grandniece, or grandnephew, whether related by the whole or the half blood or adoption, or the spouse of any of them; or

(v) any other individual occupying the residence of the individual; and

(b) with respect to an entity, means:

(i) a person that directly or indirectly controls, is controlled by, or is under common control with the entity;

(ii) an officer of, or an individual performing similar functions with respect to, the entity;

(iii) a director of, or an individual performing similar functions with respect to, the entity;

(iv) a person that receives or received more than $25,000 from the entity for debt management services in either the current year or the preceding year;

(v) a person that owns more than 10% of, or an individual who is employed by or is a director of, a person that receives or received more than $25,000 from the entity for debt management services in either the current year or the preceding year;

(vi) an officer or director of, or an individual performing similar functions with respect to, a person described in Subsection (1)(b)(i);

(vii) the spouse of, or an individual occupying the residence of, an individual described in Subsections (1)(b)(i) through (vi); or

(viii) an individual who has the relationship specified in Subsection (1)(a)(iv) or (v) to an individual or the spouse of an individual described in Subsections (1)(b)(i) through (vi).

(2) "Agreement" means an agreement between a provider and an individual for the performance of debt-management services.

(3) "Bank" means a financial institution, including a commercial bank, savings bank, savings and loan association, credit union, and trust company, engaged in the business of banking, chartered under federal or state law, and regulated by a federal or state banking regulatory authority.

(4) "Business address" means the physical location of a business, including the name and number of a street.

(5) "Certified counselor" means an individual certified by a training program or certifying organization, the division approves, that authenticates the competence of each individual providing education and assistance to other individuals in connection with debt-management services.

(6) "Concessions" means assent to repayment of a debt on terms more favorable to an individual than the terms of the contract between the individual and a creditor.

(7) "Day" means a calendar day.

(8) "Debt-management services" means services as an intermediary between an individual and one or more creditors of the individual for the purpose of obtaining concessions, but does not include:

(a) legal services an attorney provides in an attorney-client relationship if:

(i) the attorney who provides the legal services:

(A) is licensed or otherwise authorized to practice law in this state; and

(B) provides legal services in representing the individual in the individual's relationship with a creditor; and

(ii) there is no intermediary between the individual and the creditor other than the attorney or an individual under the direct supervision of the attorney;

(b) accounting services a certified public accountant provides in an accountant-client relationship if:

(i) the certified public accountant who provides the accounting services:

(A) is licensed to provide accounting services in this state; and

(B) provides accounting services in representing the individual in the individual's relationship with a creditor; and

(ii) there is no intermediary between the individual and the creditor other than the accountant or an individual under the direct supervision of the accountant; or

(c) financial-planning services a member of a financial-planning profession provides in a financial planner-client relationship if:

(i) the division, by rule, determines that a member of that financial-planning profession is:

(A) licensed by this state;

(B) subject to a disciplinary mechanism;

(D) subject to a continuing education requirement; and

(ii) there is no intermediary between the individual and the creditor other than the member of a financial-planning profession or an individual under the direct supervision of the member of a financial-planning profession.

(9) "Division" means the Division of Consumer Protection established in Section 13-2-102.

(10) "Entity" means a person other than an individual.

(11) "Good faith" means honesty in fact and the observance of reasonable standards of fair dealing.

(12) "Lead generator" means a person that, in the regular course of business:

(a) supplies a provider with the name of a potential customer;

(b) directs a communication of an individual to a provider; or

(13)

(a) "Person" means:

(i) an individual;

(ii) a corporation;

(iii) a business trust;

(iv) an estate;

(v) a trust;

(vi) a partnership;

(vii) a limited liability company;

(viii) an association;

(ix) a joint venture; or

(x) any other legal or commercial entity.

(b) "Person" does not include:

(i) a public corporation;

(ii) a government; or

(iii) a governmental subdivision, agency, or instrumentality.

(14) "Plan" means a program or strategy in which a provider furnishes debt-management services to an individual and which includes a schedule of payments to be made by or on behalf of the individual and used to pay debts owed by the individual.

(15) "Principal amount of the debt" means the amount of a debt at the time of an agreement.

(16) "Provider" means a person that provides, offers to provide, or agrees to provide debt-management services directly or through others.

(17) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(18) "Settlement fee" means a charge imposed on or paid by an individual in connection with a creditor's assent to accept in full satisfaction of a debt an amount less than the principal amount of the debt.

(19) "Sign" means, with present intent to authenticate or adopt a record:

(a) to execute or adopt a tangible symbol; or

(b) to attach to or logically associate with the record an electronic sound, symbol, or process.

(20) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

(21) "Trust account" means an account held by a provider that is:

(a) established in a bank in which deposit accounts are insured;

(b) separate from other accounts of the provider or its designee;

(c) designated as a trust account or other account designated to indicate that the money in the account is not the money of the provider or its designee; and

(d) used to hold money of one or more individuals for disbursement to creditors of the individuals.

§ 13-42-103 Exempt agreements and persons.

(1) This chapter does not apply to a provider to the extent that the provider:

(a) provides or agrees to provide debt-management, educational, or counseling services to an individual who the provider has no reason to know resides in this state at the time the provider agrees to provide the services; or

(b) receives no compensation for debt-management services from or on behalf of the individuals to whom the provider provides the services or from their creditors.

(2) This chapter does not apply to the following persons or their employees when the person or the employee is engaged in the regular course of the person's business or profession:

(a) a judicial officer, a person acting under an order of a court or an administrative agency, or an assignee for the benefit of creditors;

(b) a bank;

(c) an affiliate, as defined in Subsection 13-42-102(1)(b)(i), of a bank if the affiliate is regulated by a federal or state banking regulatory authority; or

(d) a title insurer, escrow company, or other person that provides bill-paying services if the provision of debt-management services is incidental to the bill-paying services.

§ 13-42-104 Registration required.

(1) Except as otherwise provided in Subsection (2), a provider may not provide debt-management services to an individual who the provider reasonably should know resides in this state at the time the provider agrees to provide the services, unless the provider is registered under this chapter.

(2) If a provider is registered under this chapter, Subsection (1) does not apply to an employee or agent of the provider.

(3) The division shall maintain and publicize a list of the names of all registered providers.

§ 13-42-105 Application for registration -- Form, fee, and accompanying documents.

(1) An application for registration as a provider shall be in a form the division approves.

(2) Subject to adjustment of dollar amounts in accordance with Subsection 13-42-132(6), an application for registration as a provider shall be accompanied by:

(a) the fee the division establishes in accordance with Section 63J-1-504;

(b) the bond required by Section 13-42-113;

(c) identification of all trust accounts subject to Section 13-42-122 and an irrevocable consent authorizing the division to review and examine the trust accounts;

(d) evidence of insurance in the amount of $250,000:

(i) against the risks of dishonesty, fraud, theft, and other misconduct on the part of the applicant or a director, employee, or agent of the applicant;

(ii) issued by an insurance company authorized to do business in this state and rated at least A or equivalent by a nationally recognized rating organization the division approves;

(iii) with a deductible not exceeding $5,000;

(iv) payable to the applicant and this state for the benefit of the residents of this state, as the applicant's interests may appear; and

(v) not subject to cancellation by the applicant or the insurer until 60 days after written notice has been given to the division;

(e) a record consenting to the jurisdiction of this state containing:

(i) the name, business address, and other contact information of the applicant's registered agent in this state for purposes of service of process; or

(ii) the appointment of the division as agent of the provider for purposes of service of process; and

(f) if the applicant is organized as a not-for-profit entity or has obtained tax exempt status under the Internal Revenue Code, 26 U.S.C. Sec. 501, evidence of not-for-profit or tax-exempt status, or both.

(3)

(a) The division may waive or reduce the insurance requirement in Subsection (2)(d) if the provider does not:

(i) maintain control of a trust account or receive money paid by an individual in accordance with a plan for distribution to creditors;

(ii) make payments to creditors on behalf of individuals;

(iii) collect fees by means of automatic payment from individuals; and

(iv) execute any powers of attorney that may be utilized by the provider to collect fees from or expend funds on behalf of an individual.

(b) A waiver or reduction in insurance requirements the division allows under Subsection (3)(a) shall balance the reduction in risk a provider poses by meeting the requirements of Subsection (2)(d) against any continued need for insurance against employee and director dishonesty.

§ 13-42-106 Application for registration -- Required information.

An applicant shall sign an application for registration as a provider under penalty of perjury and include in the application:

(1) the applicant's name, principal business address and telephone number, and all other business addresses in this state, email addresses, and website addresses;

(2) each name under which the applicant conducts business;

(3)

(a) the address of each location in this state at which the applicant will provide debt-management services; or

(b) a statement that the applicant will not have a location where the applicant will provide debt-management services;

(4) the name and home address of each officer and director of the applicant and each person that owns at least 10% of the applicant;

(5) identification of each jurisdiction in which, during the five years immediately preceding the application:

(a) the applicant or any of the applicant's officers or directors was licensed or registered to provide debt-management services; or

(b) an individual resided when the individual received debt-management services from the applicant;

(6) a statement describing, to the extent the applicant knows or should know, any material civil or criminal judgment or litigation and any material administrative or enforcement action by a governmental agency in any jurisdiction against:

(a) the applicant;

(b) any of the applicant's officers, directors, owners, or agents; or

(7) the applicant's financial statements, audited by an accountant licensed to conduct audits, for each of the two years immediately preceding the application or, if the applicant has not been in operation for the two years preceding the application, for the period of the applicant's existence;

(8) evidence of accreditation by an independent accrediting organization the division approves;

(9) evidence that, no later than 12 months after initial employment, each of the applicant's counselors becomes certified as a certified counselor;

(10) a description of the three most commonly used educational programs that the applicant provides or intends to provide to individuals who reside in this state and a copy of any materials the applicant uses or will use in the educational programs;

(11) a description of the applicant's financial analysis and initial budget plan, including any form or electronic model, the applicant uses to evaluate the financial condition of individuals;

(12) a copy of each form of agreement that the applicant will use with individuals who reside in this state;

(13) the schedule of fees and charges that the applicant will use with individuals who reside in this state;

(14) at the applicant's expense, the results of a criminal records check, including fingerprints, conducted within the immediately preceding 12 months, covering every officer of the applicant and every employee or agent of the applicant who is authorized to have access to the trust account required by Section 13-42-122;

(15) the names and addresses of each employer of each director during the 10 years immediately preceding the day on which the applicant submits the application;

(16) a description of any ownership interest of at least 10% by a director, owner, or employee of the applicant in:

(a) an affiliate of the applicant; or

(b) an entity that provides products or services to the applicant or an individual relating to the applicant's debt-management services;

(17) a statement of the amount of compensation of the applicant's five most highly compensated employees for each of the three years immediately preceding the application or, if the applicant has not been in operation for the three years preceding the application, for the period of the applicant's existence;

(18) the identity of each director who is an affiliate, as defined in Subsection 13-42-102(1)(a) or (1)(b)(i), (ii), (iv), (v), (vi), (vii), or (viii) of the applicant; and

(19) any other information that the division reasonably requires to perform the division's duties under Section 13-42-109.

§ 13-42-107 Application for registration -- Obligation to update information.

An applicant or registered provider shall notify the division no later than 10 days after the day on which the change in the information specified in Subsection 13-42-105(2)(d) or (f) or Subsection 13-42-106(1), (3), (6), (12), or (13) occurs.

§ 13-42-108 Application for registration -- Public information.

Except for the information required by Subsections 13-42-106(7), (14), and (17) and the addresses required by Subsection 13-42-106(4), the division shall make the information in an application for registration as a provider available to the public.

§ 13-42-109 Certification of registration -- Issuance or denial.

(1) Except as otherwise provided in Subsections (2) and (3), the division shall issue a certificate of registration as a provider to a person that complies with Sections 13-42-105 and 13-42-106.

(2) The division may deny registration if:

(a) the application contains information that is materially erroneous or incomplete;

(b) an officer, director, or owner of the applicant has been convicted of a crime, or suffered a civil judgment, involving dishonesty or the violation of state or federal securities laws;

(c) the applicant or any of the applicant's officers, directors, or owners has defaulted in the payment of money collected for others; or

(d) the division finds that the financial responsibility, experience, character, or general fitness of the applicant or the applicant's owners, directors, employees, or agents does not warrant belief that the business will be operated in compliance with this chapter.

(3) The division shall deny registration if:

(a) the application is not accompanied by the fee the division establishes in accordance with Section 63J-1-504; or

(b) with respect to an applicant that is organized as a not-for-profit entity or has obtained tax-exempt status under the Internal Revenue Code, 26 U.S.C. Sec. 501, the applicant's board of directors is not independent of the applicant's employees and agents.

(4) Subject to adjustment of the dollar amount in accordance with Subsection 13-42-132(6), a board of directors is not independent for purposes of Subsection (3) if more than one-fourth of the applicant's members:

(a) are affiliates of the applicant, as defined in Subsection 13-42-102(1)(a) or 13-42-102(1)(b)(i), (ii), (iv), (v), (vi), (vii), or (viii); or

(b) within 10 years before the day on which the applicant's member first became a director of the applicant, the applicant's member was employed by or a director of a person that received from the applicant more than $25,000 in either the current year or the preceding year.

§ 13-42-110 Certificate of registration -- Timing.

(1) The division shall approve or deny an initial registration as a provider no later than 120 days after the day on which the applicant files the applicant's application.

(2) In connection with a request in accordance with Subsection 13-42-106(19) for additional information, the division may extend the 120-day period for not more than 60 days.

(3) Within seven days after the day on which the division denies an application, the division, in writing, shall inform the applicant of the reasons for the denial.

(4) If the division denies an application for registration as a provider or does not act on an application within the time described in this section, the applicant may appeal and request a hearing in accordance with Title 63G, Chapter 4, Administrative Procedures Act.

(5) Subject to Subsection 13-42-111(4) and Section 13-42-134, a registration as a provider is valid for one year after the day on which the division issues a certificate of registration.

§ 13-42-111 Renewal of registration.

(1) A provider shall obtain a renewal of the provider's registration annually.

(2) To obtain a renewal of the provider's registration a provider shall:

(a) submit an application for renewal of registration as a provider in a form the division approves;

(b) sign the application for renewal under penalty of perjury;

(c) file the application for renewal no fewer than 30 days and no more than 60 days before the day on which the provider's current registration expires;

(d) accompany the application for renewal with:

(i) the fee the division establishes in accordance with Section 63J-1-504; and

(ii) the bond required by Section 13-42-113;

(e) include in the application for renewal of registration:

(i) the information required for initial registration as a provider by Subsections 13-42-106(8) and (9); and

(ii) a financial statement, audited by an accountant licensed to conduct audits, for the applicant's fiscal year immediately preceding the day on which the applicant submits the application for renewal;

(f) disclose in the application for renewal any change in the information contained in the applicant's application for registration or the applicant's immediately previous application for renewal, if applicable; and

(g) in the application for renewal:

(i) supply evidence of insurance in an amount equal to the larger of $250,000 or the highest daily balance in the trust account required by Section 13-42-122 during the six-month period immediately before the day on which the provider submits the application for renewal:

(A) against risks of dishonesty, fraud, theft, and other misconduct on the part of the applicant or a director, employee, or agent of the applicant;

(B) issued by an insurance company authorized to do business in this state and rated at least A- or equivalent by a nationally recognized rating organization approved by the division;

(D) payable to the applicant and this state for the benefit of the residents of this state, as their interests may appear; and

(E) not subject to cancellation by the applicant or the insurer until 60 days after the day on which written notice has been given to the division;

(ii) disclose the total amount of money received by the applicant in accordance with plans during the preceding 12 months from or on behalf of individuals who reside in this state and the total amount of money distributed to creditors of those individuals during that period;

(iii) disclose, to the best of the applicant's knowledge, the gross amount of money accumulated during the preceding 12 months in accordance with plans by or on behalf of individuals who reside in this state and with whom the applicant has agreements; and

(iv) provide any other information that the division reasonably requires to perform the division's duties under this section.

(3) Except for the information required by Subsections 13-42-106(7), (14), and (17) and the addresses required by Subsection 13-42-106(4), the division shall make the information in an application for renewal of registration as a provider available to the public.

(4) If a registered provider files a timely and complete application for renewal of registration, the registration remains effective until the division, in a record, notifies the applicant of a denial and states the reasons for the denial.

(5)

(a) If the division denies an application for renewal of registration as a provider, the applicant, no later than 30 days after receiving notice of the denial, may appeal and request a hearing in accordance with Title 63G, Chapter 4, Administrative Procedures Act.

(b) Subject to Section 13-42-134, while the appeal is pending the applicant shall continue to provide debt-management services to individuals with whom the applicant has agreements.

(c) If the denial is affirmed, subject to the division's order and Section 13-42-134, the applicant shall continue to provide debt-management services to individuals with whom the applicant has agreements until, with the approval of the division, the applicant transfers the agreements to another registered provider or returns to the individuals all unexpended money that is under the applicant's control.

(6)

(a) The division may waive or reduce the insurance requirement in Subsection (2)(g) if the provider does not:

(i) maintain control of a trust account or receive money paid by an individual in accordance with a plan for distribution to creditors;

(ii) make payments to creditors on behalf of individuals;

(iii) collect fees by means of automatic payment from individuals; and

(iv) execute any powers of attorney that the provider may utilize to collect fees from or expend funds on behalf of an individual.

(b) A waiver or reduction in insurance requirements the division allows under Subsection (6)(a) shall balance the reduction in risk posed by a provider that meets the stated requirements against any continued need for insurance against employee and director dishonesty.

§ 13-42-112 Registration in another state -- Rulemaking.

(1)

(a) Subject to rules made by the division, if a provider holds a license or certificate of registration in another state authorizing the provider to provide debt-management services, the provider may submit a copy of that license or certificate and the application for that license or certificate instead of an application in the form described in Subsection 13-42-105(1), Section 13-42-106, or Subsection 13-42-111(2).

(b) The division shall accept the application and the license or certificate from the other state as an application for registration as a provider or for renewal of registration as a provider, as appropriate, in this state if:

(i) the application in the other state contains information substantially similar to or more comprehensive than that required in an application submitted in this state;

(ii) the applicant provides the information required by Subsections 13-42-105(2)(d) and 13-42-106(1), (3), (7), (10), (12), and (13);

(iii) the applicant, under penalty of perjury, certifies that the information contained in the application is current or, to the extent it is not current, supplements the application to make the information current; and

(iv) the applicant files a surety bond or substitute in accordance with Section 13-42-113 or 13-42-114 that is solely payable or available to this state and to individuals who reside in this state.

(2) The division, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall make rules designating the states in which a provider may have a license or certificate that an applicant may submit to the division in compliance with this section.

§ 13-42-113 Surety bond required.

(1) Except as otherwise provided in Section 13-42-114, a provider that is required to be registered under this chapter shall file a surety bond with the division, which shall:

(a) be in effect during the period of registration and for two years after the day on which the provider ceases providing debt-management services to individuals in this state; and

(b) run to this state for the benefit of this state and of individuals who reside in this state when the individuals agree to receive debt-management services from the provider, as the individuals' interests may appear.

(2) Subject to adjustment of the dollar amount in accordance with Subsection 13-42-132(6), a surety bond filed in accordance with Subsection (1) shall:

(a) be in the amount of $100,000;

(b) be issued by a surety company authorized to do business in this state and rated at least A- by a nationally recognized rating organization; and

(3)

(a) If the principal amount of a surety bond is reduced by payment of a claim or a judgment, the provider shall immediately notify the division and, no later than 30 days after the day on which the division gives notice to the provider, file a new or additional surety bond in an amount to comply with the $100,000 requirement.

(b) If for any reason a surety terminates a bond, the provider shall immediately file a new surety bond in the amount of $100,000.

(4) The division or an individual may obtain satisfaction out of the surety bond procured in accordance with this section if:

(a) the division assesses expenses under Subsection 13-42-132(2)(a), issues a final order under Subsection 13-42-133(1)(b), or recovers a final judgment under Subsection 13-42-133(1)(d) or (e) or Subsection 13-42-133(4); or

(b) an individual recovers a final judgment in accordance with Subsection 13-42-135(1), Subsection 13-42-135(2), or Subsection 13-42-135(3)(a), (b), or (d).

(5) If claims against a surety bond exceed or are reasonably expected to exceed the amount of the bond, the division, on the initiative of the division or on petition of the surety, shall, unless the proceeds are adequate to pay all costs, judgments, and claims, distribute the proceeds in the following order:

(a) to satisfaction of a final order or judgment under Subsection 13-42-133(1)(a), (d), or (e) or Subsection 13-42-133(4);

(b) to final judgments recovered by individuals in accordance with Subsection 13-42-135(1), Subsection 13-42-135(2), or Subsection 13-42-135(3)(a), (b) or (d), pro rata;

(d) if a final order or judgment is issued under Subsection 13-42-133(1), to the expenses charged in accordance with Subsection 13-42-132(2)(a).

§ 13-42-114 Bond required -- Substitute.

(1) Instead of the surety bond required by Section 13-42-113, a provider, with the approval of the division and in the amount required by Subsection (2), may deliver to the division:

(a) an irrevocable letter of credit, issued or confirmed by a bank the division approves, payable on presentation of a certificate by the division stating that the provider or the provider's agent has not complied with this chapter; or

(b) bonds or other obligations of the United States or guaranteed by the United States or bonds or other obligations of this state or a political subdivision of this state, to be:

(i) deposited and maintained with a bank the division approves for this purpose; and

(ii) delivered by the bank to the division on presentation of a certificate by the division stating that the provider or provider's agent has not complied with this chapter.

(2) If a provider furnishes a substitute in accordance with Subsection (1), Subsections 13-42-113(1), (3), (4), and (5) apply to the substitute.

§ 13-42-115 Requirement of good faith.

A provider shall act in good faith in all matters under this chapter.

§ 13-42-116 Customer service.

A provider that is required to be registered under this chapter shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified counselor or customer service representative, as appropriate, during ordinary business hours.

§ 13-42-117 Prerequisites for providing debt-management services.

(1) Before providing debt-management services, a provider shall give the individual an itemized list of goods and services and the charges for each. The list shall be clear and conspicuous, be in a record the individual may keep whether or not the individual assents to an agreement, and describe the goods and services the provider offers:

(a) free of additional charge if the individual enters into an agreement;

(b) for a charge if the individual does not enter into an agreement; and

Set-up fee _________________________________________________

dollar amount of fee

Monthly service fee __________________________________________

dollar amount of fee or method of determining amount

Settlement fee ______________________________________________

dollar amount of fee or method of determining amount

Goods and services in addition to those provided in connection with a plan:

(item) dollar amount or method of determining amount

(item) dollar amount or method of determining amount.

(2) A provider may not furnish debt-management services unless the provider, through the services of a certified counselor:

(a) provides the individual with reasonable education about the management of personal finance;

(b) has prepared a financial analysis including at least the following matters affecting the individual's financial condition:

(i) assets;

(ii) income;

(iii) debt, including secured debt; and

(iv) other liabilities; and

(i) has prepared a plan for the individual;

(ii) has made a determination, based on the provider's analysis of the information provided by the individual and otherwise available to it, that the plan is suitable for the individual and the individual will be able to meet the payment obligations under the plan; and

(iii) believes that each creditor of the individual listed as a participating creditor in the plan will accept payment of the individual's debts as provided in the plan.

(3) Before an individual assents to an agreement to engage in a plan, a provider shall:

(a) provide the individual with a copy of the analysis and plan required by Subsection (2) in a record that identifies the provider and that the individual may keep whether or not the individual assents to the agreement;

(b) inform the individual of the availability, at the individual's option, of assistance by a toll-free communication system or in person to discuss the financial analysis and plan required by Subsection (2); and

(c) with respect to all creditors identified by the individual or otherwise known by the provider to be creditors of the individual, provide the individual with a list of:

(i) creditors that the provider expects to participate in the plan and grant concessions;

(ii) creditors that the provider expects to participate in the plan but not grant concessions;

(iii) creditors that the provider expects not to participate in the plan; and

(iv) all other creditors.

(4) Before an individual assents to an agreement, the provider shall inform the individual, in a separate record that the individual may keep whether or not the individual assents to the agreement:

(a) of the name and business address of the provider;

(b) that plans are not suitable for all individuals and the individual may ask the provider about other ways, including bankruptcy, to deal with indebtedness;

(d) if the provider intends to include a settlement offer to any of the individual's creditors or debt collectors:

(i) of the time by which the provider will make a bona fide settlement offer to any of the individual's creditors or debt collectors; and

(ii) of the amount of money or the percentage of each outstanding debt that the individual must accumulate before the provider will make a bona fide settlement offer to each creditor or debt collector;

(e) that establishment of a plan may adversely affect the individual's credit rating or credit scores;

(f) that nonpayment of debt may lead creditors to increase finance and other charges or undertake collection activity, including litigation;

(g) if the provider requests or requires the individual to place money in an account at an insured financial institution, that the individual:

(i) owns the funds held in the account;

(ii) may withdraw from the provider's plan at any time without penalty; and

(iii) is entitled to receive all money in the account, other than money that the provider earns as provided in Section 13-42-123, at the time the individual withdraws from the provider's plan;

(h) unless it is not true, that the provider may receive compensation from the creditors of the individual; and

(i) that, unless the individual is insolvent, if a creditor settles for less than the full amount of the debt, the plan may result in the creation of taxable income to the individual, even though the individual does not receive any money.

(5) If a provider may receive payments from an individual's creditors and the plan contemplates that the individual's creditors will reduce finance charges or fees for late payment, default, or delinquency, the provider may comply with Subsection (4) by providing the following disclosure, surrounded by black lines:

IMPORTANT INFORMATION FOR YOU TO CONSIDER

(1) Debt-management plans are not right for all individuals, and you may ask us to provide information about other ways, including bankruptcy, to deal with your debts.

(2) Using a debt-management plan may make it harder for you to obtain credit.

(3) We may receive compensation for our services from your creditors.

Name and business address of provider

(6) If a provider will not receive payments from an individual's creditors and the plan contemplates that the individual's creditors will reduce finance charges or fees for late payment, default, or delinquency, a provider may comply with Subsection (4) by providing the following disclosure, surrounded by black lines:

IMPORTANT INFORMATION FOR YOU TO CONSIDER

(1) Debt-management plans are not right for all individuals, and you may ask us to provide information about other ways, including bankruptcy, to deal with your debts.

(2) Using a debt-management plan may make it harder for you to obtain credit.

Name and business address of provider

(7) If an agreement contemplates that creditors will settle debts for less than the full principal amount of debt owed, a provider may comply with Subsection (4) by providing the following disclosure, surrounded by black lines:

IMPORTANT INFORMATION FOR YOU TO CONSIDER

(1) Our program is not right for all individuals, and you may ask us to provide information about bankruptcy and other ways to deal with your debts.

(2) Nonpayment of your debts under our program may

hurt your credit rating or credit scores;

lead your creditors to increase finance and other charges; and

lead your creditors to undertake activity, including lawsuits, to collect the debts.

(3) Reduction of debt under our program may result in taxable income to you, even though you will not actually receive any money.

Name and business address of provider

§ 13-42-118 Communication by electronic or other means.

(1) As used in this section:

(a) "Consumer" means an individual who seeks or obtains goods or services that are used primarily for personal, family, or household purposes.

(b) "Federal act" means the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq.

(2) A provider may satisfy the requirements of Section 13-42-117, 13-42-119, or 13-42-127 by means of the internet or other electronic means if the provider obtains a consumer's consent in the manner provided by Section 101(c)(1) of the federal act.

(3) A provider shall present the disclosures and materials required by Sections 13-42-117, 13-42-119, and 13-42-127 in a form that is capable of being accurately reproduced for later reference.

(4) With respect to disclosure by means of a website, the disclosure of the information required by Subsection 13-42-117(4) shall appear on one or more screens that:

(a) contain no other information; and

(b) an individual is able to see before proceeding to assent to formation of an agreement.

(5) At the time of providing the materials and agreement required by Subsections 13-42-117(3) and (4), Section 13-42-119, and Section 13-42-127, a provider shall inform the individual that on electronic, telephonic, or written request, the provider:

(a) will send the individual a written copy of the materials; and

(b) shall comply with a request as provided in Subsection (6).

(6)

(a) If an individual requests that a provider, before the expiration of 90 days after the day on which an agreement is completed or terminated, send the individual a written copy of the materials required by Subsections 13-42-117(3) and (4), Section 13-42-119, or Section 13-42-127, the provider shall send the materials at no charge no later than three business days after the day on which the provider receives the request.

(b) Notwithstanding Subsection (6)(a), a provider is not required to comply with a request more than once per calendar month or if the provider reasonably believes the individual makes the request for purposes of harassment.

(c) If an individual makes a request more than 90 days after the day on which an agreement is completed or terminated, the provider shall send within a reasonable time a written copy of the materials requested.

(7) A provider that maintains a website shall disclose on the home page of the provider's website or on a page that is clearly and conspicuously connected to the home page by a link that clearly reveals the website's contents:

(a) the provider's name and all names under which the provider does business;

(b) the provider's principal business address, telephone number, and electronic-mail address, if any; and

(8) Subject to Subsection (9), if a consumer who consents to electronic communication in the manner provided by Section 101 of the federal act withdraws consent as provided in the federal act, a provider may terminate the provider's agreement with the consumer.

(9)

(a) If a provider wishes to terminate an agreement with a consumer in accordance with Subsection (8), the provider shall notify the consumer that the provider will terminate the agreement unless the consumer, no later than 30 days after the day on which the consumer receives the notification, consents to electronic communication in the manner provided in Section 101(c) of the federal act.

(b) If the consumer consents to electronic communication as described in Subsection (9)(a), the provider may terminate the agreement only as permitted by Subsection 13-42-119(1)(f)(iv)(D).

§ 13-42-119 Form and contents of agreement.

(1) An agreement shall:

(a) be in a record;

(b) be dated and signed by the provider and the individual;

(d) include the name, business address, and telephone number of the provider;

(e) be delivered to the individual immediately upon formation of the agreement; and

(f) disclose:

(i) the services the provider will provide;

(ii) the amount, or method of determining the amount, of all fees, individually itemized, the individual will pay;

(iii) the schedule of payments to be made by or on behalf of the individual, including the amount of each payment, the date on which each payment is due, and an estimate of the date of the final payment;

(iv) if a plan provides for regular periodic payments to creditors:

(A) each creditor of the individual to which the provider will make payment, the amount owed to each creditor, and any concessions the provider reasonably believes each creditor will offer;

(B) the schedule of expected payments to each creditor, including the amount of each payment and the date on which the provider will make the payment;

(C) each creditor that the provider believes will not participate in the plan and to which the provider will not direct payment; and

(D) that the provider may terminate the agreement for good cause, upon return of unexpended money of the individual;

(v) if a plan contemplates the settlement of the individual's debt for less than the principal amount of the debt, an estimate of:

(A) the duration of the plan based on all enrolled debts;

(B) the length of time before the individual may reasonably expect a settlement offer; and

(C) the amount of savings needed to accrue before the individual may reasonably expect a settlement offer, expressed as either a dollar amount or a percentage, for each enrolled debt;

(vi) how the provider will comply with the provider's obligations under Subsection 13-42-127(1);

(vii) that the individual may terminate the agreement at any time by giving written or electronic notice, and that, if notice of termination is given, the individual will receive all unexpended money that the provider or the provider's designee receives from or on behalf of the individual for payment of a credit and, except to the extent they have been earned, the provider's fees;

(viii) that the individual may contact the division with any questions or complaints regarding the provider; and

(ix) the address, telephone number, and email address or website of the division.

(2) For purposes of Subsection (1)(e), delivery of an electronic record occurs when:

(a) the provider makes the electronic record available in a format in which the individual may retrieve, save, and print the electronic record; and

(b) the provider notifies the individual that the electronic record is available.

(3) If the division supplies the provider with any information required under Subsection (1)(f)(ix), the provider may comply with that requirement only by disclosing the information the division supplies.

(4) An agreement shall provide that:

(a) the individual authorizes any bank in which the provider or the provider's agent has established a trust account to disclose to the division any financial records relating to the trust account; and

(b) the provider will provide a notice to the individual no later than five business days after the day on which a creditor learns of a creditor's final decision to reject or withdraw from a plan and that the notice will include:

(i) the identity of the creditor; and

(ii) the right of the individual to modify or terminate the agreement.

(5) An agreement may not:

(a) provide for application of the law of a jurisdiction other than the United States and this state;

(b) except as permitted by Section 2 of the Federal Arbitration Act, 9 U.S.C. Sec. 2, or Title 78B, Chapter 11, Utah Uniform Arbitration Act, contain a provision that modifies or limits otherwise available forums or procedural rights, including the right to trial by jury, that are generally available to the individual under law other than this chapter;

(d) contain a provision that:

(i) limits or releases the liability of a person for not performing the agreement or for violating this chapter; or

(ii) indemnifies a person for liability arising under the agreement or this chapter.

(6) A provision in an agreement which violates Subsection (4) or (5) is void.

§ 13-42-120 Termination of agreement.

(1) An individual who is a party to an agreement may terminate the agreement at any time, without penalty or obligation, by giving the provider notice in a record.

(2) A provider may terminate an agreement if an individual who is a party to the agreement fails for 60 days to make a payment or deposit required by the agreement or if other good cause exists.

(3) If an agreement is terminated:

(a) the provider, no later than seven business days after the termination, shall pay the individual who is a party to the agreement all money the provider or its designee received from or on behalf of the individual, other than:

(i) an amount properly disbursed to a creditor; and

(ii) fees earned pursuant to Section 13-42-123; and

(b) any power of attorney granted by the individual to the provider is revoked.

§ 13-42-121 Required language.

(1) Unless the division, by rule, provides otherwise, the disclosures and documents required by this chapter shall be in English.

(2) If a provider communicates with an individual primarily in a language other than English, the provider shall furnish a translation in the other language of the disclosures and documents required by this chapter.

§ 13-42-122 Trust account.

(1)

(a) A provider shall hold all money paid to the provider by or on behalf of an individual for distribution to creditors in accordance with a plan in a trust account.

(b) No later than two business days after the day on which the provider receives the money, the provider shall deposit the money in a trust account established for the benefit of individuals to whom the provider furnishes debt-management services.

(2) A provider whose agreement contemplates the settlement of an individual's debt for less than the principal amount of the debt may request or require the individual to place money in an account the provider uses to pay a creditor or the provider's fees, or both, if:

(a) the provider holds the money in an insured account at a bank;

(b) the individual owns the money held in the account;

(d) the entity administering the account is not the provider or an affiliate of the provider, unless the affiliate is described in Subsection 13-42-102(1)(b)(iv);

(e) the entity administering the account does not give or accept any money or other compensation in exchange for a referral of business involving debt-management services; and

(f) the individual may terminate the agreement at any time without penalty and on termination shall receive all money in the account, other than money earned by the provider in accordance with this section.

(3) If an agreement contemplates the reduction of finance charges or fees for late payment, default, or delinquency, and the provider complies with Subsection (1), the provider may request or require the individual to make payment to be used for both distribution to creditors and payment of the provider's fees.

(4)

(a) Money a provider holds in trust is not property of the provider or the provider's designee.

(b) The money is not available to creditors of the provider or designee, except an individual from whom or on whose behalf the provider received money, to the extent that the provider has not disbursed the money to creditors of the individual.

(5) A provider shall:

(a) maintain separate records of account for each individual to whom the provider furnishes debt-management services;

(b) disburse money paid by or on behalf of the individual to creditors of the individual as disclosed in the agreement, except that:

(i) the provider may delay payment to the extent that a payment by the individual is not final; and

(ii) if a plan provides for regular periodic payments to creditors, the disbursement shall comply with the due dates established by each creditor; and

(c) promptly correct a payment that the provider does not make or that the provider misdirects as a result of an error by the provider or other person in control of the trust account and reimburse the individual for any costs or fees imposed by a creditor as a result of the failure to pay or misdirection.

(6) A provider may not commingle money in a trust account established for the benefit of individuals to whom the provider furnishes debt-management services with money of another person.

(7) A trust account shall at all times have a cash balance equal to the sum of the balances of each individual's account.

(8)

(a) If a provider has established a trust account in accordance with Subsection (1), the provider shall reconcile the trust account at least once a month.

(b) The reconciliation shall compare the cash balance in the trust account with the sum of the balances in each individual's account.

(c) If the provider or the provider's designee has more than one trust account, each trust account shall be individually reconciled.

(9)

(a) If a provider discovers, or has a reasonable suspicion of, embezzlement or other unlawful appropriation of money held in trust, the provider immediately shall notify the division by a method the division approves.

(b) Unless the division by rule provides otherwise, no later than five days after the provider notifies the division in accordance with Subsection (9)(a), the provider shall give notice to the division describing the remedial action the provider takes or will take.

(10) If an individual terminates an agreement or a provider determines that a plan has failed, the provider shall promptly refund to the individual all money paid by or on behalf of the individual that the provider has not paid to creditors, less fees that are payable to the provider under Section 13-42-123.

(11)

(a) Before relocating a trust account from one bank to another, a provider shall inform the division of the name, business address, and telephone number of the new bank.

(b) As soon as practicable, the provider shall inform the division of the account number of the trust account at the new bank.

§ 13-42-123 Fees and other charges.

(1) A provider may not impose directly or indirectly a fee or other charge on an individual or receive money from or on behalf of an individual for debt-management services except as permitted by this section.

(2) A provider may not impose charges or receive payment for debt-management services until the provider and the individual sign an agreement that complies with Sections 13-42-119 and 13-42-128.

(3)

(a) If an individual assents to an agreement, a provider may not impose a fee or other charge for educational, counseling, or similar services, except as otherwise provided in this section and Subsection 13-42-128(4).

(b) The division may authorize a provider to charge a fee based on the nature and extent of the services the provider furnishes.

(4)

(a) Subsections (4)(b) through (d) are subject to adjustment of dollar amounts in accordance with Subsection 13-42-132(6).

(b) If an individual assents to a plan that contemplates that a creditor will reduce finance charges or fees for late payment, default, or delinquency, the provider may charge:

(i) a fee not exceeding $50 for consultation, obtaining a credit report, setting up an account, and other similar services; and

(ii) a monthly service fee, not to exceed $10 times the number of accounts remaining in a plan at the time the fee is assessed, but not more than $50 in any month.

(c) If an individual assents to an agreement that contemplates that creditors will settle debts for less than the principal amount of the debt, a provider may not request or receive payment of a fee or consideration for the provider's service unless:

(i) the provider renegotiates, settles, reduces, or otherwise alters the terms of at least one debt under an agreement the individual executes;

(ii) the individual makes at least one payment in accordance with the agreement between the individual and the creditor or debt collector; and

(iii) the fee or consideration for an individual debt that an individual renegotiates, settles, reduces, or otherwise alters:

(A) bears the same proportion to the total fee for renegotiating, settling, reducing, or altering the terms of the entire debt as the individual debt amount at the time the debt was enrolled in the service bears to the entire debt amount at the time the debt was enrolled in the service; or

(B) is a percentage of the amount saved as a result of the renegotiation, settlement, reduction, or alteration, as calculated under Subsection (4)(e), that may not change from one individual debt to another.

(d)

(i) Except as otherwise provided in Subsection 13-42-128(4), if an individual does not assent to an agreement, a provider may receive for educational and counseling services the provider provides to the individual a fee not exceeding $100 or, with the approval of the division, a larger fee.

(ii) The division may approve a fee larger than $100 if the nature and extent of the educational and counseling services warrant the larger fee.

(e) For purposes of Subsection (4)(c)(iii)(B), the amount saved is calculated as the difference between the amount owed at the time the debt is enrolled in the service and the amount actually paid to satisfy the debt.

(5) If, before the expiration of 90 days after the completion or termination of educational or counseling services, an individual assents to an agreement, the provider shall refund to the individual a fee an individual pays in accordance with Subsection (4)(d).

(6) Except as otherwise provided in Subsections (3) and (4), if an agreement contemplates that creditors will settle an individual's debts for less than the principal amount of the debt:

(a) compensation for services in connection with settling a debt shall be reasonable and clearly disclosed in the agreement; and

(b) a fee for settling a debt may be collected only as the debt is settled.

(7) Subject to adjustment of the dollar amount in accordance with Subsection 13-42-132(6), if a payment to a provider by an individual under this chapter is dishonored, a provider may impose a reasonable charge on the individual, not to exceed the lesser of $25 and the amount permitted by law other than this chapter.

§ 13-42-124 Voluntary contributions.

A provider may not solicit a voluntary contribution from an individual or an affiliate of the individual for any service provided to the individual. A provider may accept voluntary contributions from an individual but, until 30 days after completion or termination of a plan, the aggregate amount of money received from or on behalf of the individual may not exceed the total amount the provider may charge the individual under Section 13-42-123.

§ 13-42-125 Voidable agreements.

(1) If a provider imposes a fee or other charge or receives money or other payments not authorized by Section 13-42-123 or 13-42-124, the individual may void the agreement and recover as provided in Section 13-42-135.

(2) If a provider is not registered as required by this chapter when an individual assents to an agreement, the agreement is voidable by the individual.

(3) If an individual voids an agreement under Subsection (2), the provider does not have a claim against the individual for breach of contract or for restitution.

§ 13-42-126 Retention of records.

(1) For each individual for whom a provider provides debt-management services, the provider shall maintain records for five years after the final payment made by the individual.

(2) The provider shall produce a copy of the records to the individual within a reasonable time after a request for the records.

(3) The provider may use electronic or other means of storage of the records.

§ 13-42-127 Periodic reports and retention of records.

(1) A provider shall provide the accounting required by Subsection (2):

(a) on cancellation or termination of an agreement; and

(b) before cancellation or termination of any agreement:

(i) at least once each month; and

(ii) no later than five business days after a request by an individual, but the provider need not comply with more than one request in any calendar month.

(2) A provider, in a record, shall provide each individual for whom it has established a plan an accounting of the following information:

(a) the amount in an account containing money paid by or on behalf of the individual for fees or distribution to a creditor, or both, as of the date one month before the date of the accounting;

(b) the amount paid into the account since the last report;

(c) the amounts and dates of disbursement made on the individual's behalf, or by the individual on the direction of the provider, since the last report to each creditor listed in the plan;

(d) the amounts deducted, as fees or otherwise, from the amount paid into the account since the last report;

(e) if, since the last report, a creditor has agreed to accept as payment in full an amount less than the principal amount of the debt owed by the individual:

(i) the total amount and terms of the settlement;

(ii) the amount of the debt when the individual assented to the plan;

(iii) the amount of the debt when the creditor agreed to the settlement; and

(iv) the calculation of a settlement fee; and

(f) the amount in the account as of the date of the accounting.

(3) If an agreement contemplates that a creditor will settle a debt for less than the principal amount of the debt and the provider delegates performance of its duties under this section to another person, the provider may provide the information required by Subsection (2)(e) in a record separate from the record containing the other information required by Subsection (2).

§ 13-42-128 Prohibited acts and practices.

(1) A provider may not, directly or indirectly:

(a) include a secured debt in a plan, except as authorized by law other than this chapter;

(b) misappropriate or misapply money the provider holds in trust;

(c) settle a debt on behalf of an individual, unless the individual assents to the settlement after the creditor assents to the settlement;

(d) take a power of attorney that authorizes the provider to settle a debt;

(e) exercise or attempt to exercise a power of attorney after an individual terminates an agreement;

(f) initiate a transfer from an individual's account at a bank or with another person unless the transfer is:

(i) a return of money to the individual; or

(ii) before termination of an agreement, properly authorized by the agreement and this chapter, and for:

(A) payment to one or more creditors in accordance with an agreement; or

(B) payment of a fee;

(g) offer a gift or bonus, premium, reward, or other compensation to an individual for executing an agreement;

(h) offer, pay, or give a gift or bonus, premium, reward, or other compensation to a lead generator or other person for referring a prospective customer, if the person making the referral:

(i) has a financial interest in the outcome of debt-management services provided to the customer, unless neither the provider nor the person making the referral communicates to the prospective customer the identity of the source of the referral; or

(ii) compensates its employees on the basis of a formula that incorporates the number of individuals the employee refers to the provider;

(i) receive a bonus, commission, or other benefit for referring an individual to a person;

(j) structure a plan in a manner that would result in a negative amortization of any of an individual's debts, unless a creditor that is owed a negatively amortizing debt agrees to refund or waive the finance charge on payment of the principal amount of the debt;

(k) compensate the provider's employees on the basis of a formula that incorporates the number of individuals the employee induces to enter into agreements;

(l) settle a debt or lead an individual to believe that a payment to a creditor is in settlement of a debt to the creditor unless, at the time of settlement, the individual receives a certification by the creditor that the payment:

(i) is in full settlement of the debt; or

(ii) is part of a settlement plan, the terms of which are included in the certification, that, if completed according to its terms, will satisfy the debt;

(m) make a representation that:

(i) the provider will furnish money to pay bills or prevent attachments;

(ii) payment of a certain amount will permit satisfaction of a certain amount or range of indebtedness; or

(iii) participation in a plan will or may prevent litigation, garnishment, attachment, repossession, foreclosure, eviction, or loss of employment;

(n) misrepresent that it is authorized or competent to furnish legal advice or perform legal services;

(o) represent in the provider's agreements, disclosures required by this chapter, advertisements, or website that the provider is:

(i) a not-for-profit entity unless the provider is organized and properly operating as a not-for-profit entity under the law of the state in which the provider was formed; or

(ii) a tax-exempt entity unless the provider receives certification of tax-exempt status from the Internal Revenue Service and properly operates as a not-for-profit entity under the law of the state in which the provider was formed;

(p) take a confession of judgment or power of attorney to confess judgment against an individual;

(q) employ an unfair, unconscionable, or deceptive act or practice;

(r) knowingly omit any material information or material aspect of any provider's service, including:

(i) the amount of money or the percentage of the debt amount that an individual may save by using the provider's service;

(ii) the amount of time necessary to achieve the results that the provider represents as achievable;

(iii) the amount of money or the percentage of each outstanding debt that the individual is required to accumulate before the provider will:

(A) initiate an attempt with the individual's creditors or debt collectors to negotiate, settle, or modify the terms of the individual's debt; or

(B) make a bona fide offer to negotiate, settle, or modify the terms of the individual's debt;

(iv) the effect of the service on:

(A) an individual's creditworthiness; or

(B) collection efforts of the individual's creditors or debt collectors;

(v) the percentage or number of individuals who achieve the results that the provider represents are achievable; and

(vi) whether a nonprofit entity offers or provides a provider's service; or

(s) make or use an untrue or a misleading statement:

(i) to the division; or

(ii) in the provision of services subject to this chapter.

(2) If a provider furnishes debt-management services to an individual, the provider may not, directly or indirectly:

(a) purchase a debt or obligation of the individual;

(b) receive from or on behalf of the individual:

(i) a promissory note or other negotiable instrument other than a check or a demand draft; or

(ii) a post-dated check or demand draft;

(i) a deferral of a settlement fee at no additional expense to the individual; or

(ii) through an affiliate that is licensed separately from the provider;

(d) obtain a mortgage or other security interest from any person in connection with the services provided to the individual;

(e) except as permitted by federal law, disclose the identity or identifying information of the individual or the identity of the individual's creditors, except to:

(i) the division, on proper demand;

(ii) a creditor of the individual, to the extent necessary to secure the cooperation of the creditor in a plan; or

(iii) the extent necessary to administer the plan;

(f) except as otherwise provided in Subsection 13-42-123(4)(c), provide the individual less than the full benefit of a compromise of a debt arranged by the provider;

(g) charge the individual for or provide credit or other insurance, coupons for goods or services, membership in a club, access to computers or the Internet, or any other matter not directly related to debt-management services or educational services concerning personal finance, except to the extent such services are expressly authorized by the division; or

(h) furnish legal advice or perform legal services, unless the person furnishing that advice to or performing those services for the individual is licensed to practice law.

(3) This chapter does not authorize any person to engage in the practice of law.

(4) A provider may not receive a gift or bonus, premium, reward, or other compensation, directly or indirectly, for advising, arranging, or assisting an individual in connection with obtaining, an extension of credit or other service from a lender or service provider, except:

(a) for educational or counseling services required in connection with a government-sponsored program; or

(b) as authorized in Subsection 13-42-123(4)(d).

(5) Unless a person supplies goods, services, or facilities generally and supplies the goods, services, or facilities to the provider at a cost no greater than the cost the person generally charges to others, a provider may not purchase goods, services, or facilities from the person if an employee or a person that the provider should reasonably know is an affiliate of the provider:

(a) owns more than 10% of the person; or

(b) is an employee or affiliate of the person.

(6) A provider may not:

(a) represent that the division or the state endorses the provider;

(b) omit from a filing with the division a material statement of fact required by this chapter or rule the division makes in accordance with this chapter; or

(c) include in a filing with the division a material statement of fact that the provider or the provider's principal knows or should know is false, deceptive, inaccurate, or misleading.

§ 13-42-129 Notice of litigation.

No later than 30 days after the day on which a provider is served with notice of a civil action for a violation of this chapter by or on behalf of an individual who resides in this state at either the time of an agreement or the time the notice is served, the provider shall notify the division in a record that the provider has been sued.

§ 13-42-130 Advertising.

(1) If a provider whose agreements contemplate that creditors will reduce finance charges or fees for late payment, default, or delinquency advertises debt-management services, it shall disclose, in an easily comprehensible manner, that using a debt-management plan may make it harder for the individual to obtain credit.

(2) If a provider whose agreements contemplate that creditors will settle for less than the full principal amount of debt that advertises debt-management services, it shall disclose, in an easily comprehensible manner:

(a) the information specified in Subsections 13-42-117(4)(e) and (f); and

(b) the provider's settlement fee structure, consistent with the limitations of Section 13-42-123.

§ 13-42-131 Provider liability for the conduct of other persons -- Prohibited conduct of person providing service to provider.

(1) If a provider delegates any of its duties or obligations under an agreement or this chapter to another person, including an independent contractor, the provider is liable for conduct of the person which, if done by the provider, would violate the agreement or this chapter.

(2) A lead generator or other person that provides services to or for a provider may not engage in an unfair, unconscionable, or deceptive act or practice, including the knowing omission of any material information, with respect to an individual who the lead generator or other person has reason to believe is or may become a customer of the provider.

§ 13-42-132 Powers of the division.

(1) The division may:

(a) act on the division's own initiative or in response to complaints;

(b) receive complaints;

(d) refer cases to the attorney general; and

(e) seek or provide remedies as provided in this chapter.

(2)

(a) The division may investigate and examine, in this state or elsewhere, by subpoena or otherwise, the activities, books, accounts, and records of:

(i) a person that provides or offers to provide debt-management services; or

(ii) a person to which a provider delegates the provider's obligations under an agreement or this chapter, to determine compliance with this chapter.

(b) The division may not disclose information that identifies an individual who has an agreement with the provider to the public.

(i) charge the person any reasonable expense the division incurs to conduct the examination;

(ii) require or permit a person to file a statement under oath as to each fact and circumstances of a matter the division investigates; and

(iii) seek a court order authorizing seizure from a bank at which the person maintains a trust account described in Section 13-42-122, any or all money, books, records, accounts, and other property of the provider that the bank controls and relates to an individual who resides in this state.

(3) The division may adopt rules to implement the provisions of this chapter in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(4) The division may:

(a) enter into a cooperative arrangement with a federal or state agency that has authority over providers; and

(b) exchange with a federal or state agency information about a provider, including information the division obtains during an examination of the provider.

(5) The division shall establish fees in accordance with Section 63J-1-504 that a provider shall pay for the expense of administering this chapter.

(6)

(a) The division, by rule, shall adopt dollar amounts instead of those specified in Sections 13-42-102, 13-42-105, 13-42-109, 13-42-113, 13-42-123, 13-42-133, and 13-42-135 to reflect inflation, as measured by:

(i) the United States Bureau of Labor Statistics Consumer Price Index for All Urban Consumers; or

(ii) if the United States Bureau of Labor Statistics Consumer Price Index for All Urban Consumers is not available, another index the division adopts by rule.

(b) The division shall adopt a base year and adjust the dollar amounts, effective on July 1 of each year, if the change in the index from the base year, as of December 31 of the preceding year, is at least 10%.

(c) The division shall round the dollar amount to the nearest $100, except that the division shall round the amounts in Section 13-42-123 to the nearest dollar.

(7) The division shall notify registered providers of any change in dollar amounts made in accordance with Subsection (6) and make that information available to the public.

§ 13-42-133 Administrative remedies.

(1) The division may enforce this chapter and rules the division adopts under this chapter by taking one or more of the following actions:

(a) ordering a provider, lead generator, person administering an account in accordance with Subsection 13-42-122(2), or director, employee, or other agent of a provider to cease and desist from a violation;

(b) ordering a provider, lead generator, person administering an account in accordance with Subsection 13-42-122(2), or person that causes a violation to correct the violation, including making restitution of money or property to a person aggrieved by a violation;

(c) subject to adjustment of the dollar amount in accordance with Subsection 13-42-132(6), imposing on a provider, lead generator, person administering an account in accordance with Subsection 13-42-122(2), or other person that violates or causes a violation an administrative fine not exceeding $10,000 for each violation;

(d) prosecuting a civil action to:

(i) enforce an order; or

(ii) obtain restitution or equitable relief, or both; or

(e) intervening in an action brought under Section 13-42-135.

(2) Subject to adjustment of the dollar amount in accordance with Subsection 13-42-132(6), if a person violates or knowingly authorizes, directs, or aids in the violation of a final order the division issues under Subsection (1)(a) or (b), the division may impose an administrative fine not exceeding $20,000 for each violation.

(3) The division may maintain an action to enforce this chapter in any county.

(4) The division may recover the reasonable costs of enforcing the chapter under Subsections (1) through (3), including attorney fees based on the hours the division reasonably expends and the hourly rates for attorneys of comparable experience in the community.

(5) In determining the amount of an administrative fine the division imposes under Subsection (1) or (2), the division director shall consider:

(a) the seriousness of the violation;

(b) the good faith of the violator;

(d) the deleterious effect of the violation on the public;

(e) the net worth of the violator; and

(f) any other factor the division director considers relevant to the determination of the administrative fine.

§ 13-42-134 Suspension, revocation, or nonrenewal of registration.

(1) In this section, "insolvent" means a provider:

(a) ceases to pay debts in the ordinary course of business other than as a result of good-faith dispute;

(b) is unable to pay debts as the debts become due; or

(2) The division may suspend, revoke, or deny renewal of a provider's registration if:

(a) a fact or condition exists that, if the fact or condition had existed when the registrant applied for registration as a provider, would have been a reason for the division denying the registration;

(b) the provider commits a material violation of this chapter or a rule or order of the division under this chapter;

(d) the provider, an employee or affiliate of the provider, a lead generator for the provider, a person administering an account for the provider in accordance with Subsection 13-42-122(2), or a person to which the provider delegates the provider's obligations under an agreement or this chapter:

(i) refuses to permit the division to make an examination authorized by this chapter;

(ii) fails to comply with Subsection 13-42-132(2)(b) no later than 15 days after the day on which the division makes a request in accordance with Section 13-42-132; or

(iii) makes a material misrepresentation or omission in complying with Subsection 13-42-132(2)(b); or

(e) the provider fails to respond within a reasonable time and in an appropriate manner to a communication from the division.

(3) If a provider becomes insolvent, the provider shall continue to provide debt-management services to an individual with whom the provider has an agreement until:

(a) with the division's approval, the provider transfers the agreement to another registered provider; or

(b) the provider returns to the individual all unexpended money that is under the provider's control.

(4) If a provider fails to comply with Subsection 13-42-122(8) or if the division otherwise finds that the public health or safety or general welfare requires emergency action, the division may order a summary suspension of the provider's registration, effective on the date the division specifies in the order.

(5) If the division suspends, revokes, or denies renewal of the registration of a provider, the division may seek a court order authorizing seizure of any or all of the money in a trust account required by Section 13-42-122, books, records, accounts, and other property of the provider which are located in this state.

(6) If the division suspends or revokes a provider's registration, the provider may appeal and request a hearing in accordance with Title 63G, Chapter 4, Administrative Procedures Act.

§ 13-42-135 Private enforcement.

(1) If an individual voids an agreement in accordance with Subsection 13-42-125(2), the individual may recover in a civil action all money paid or deposited by or on behalf of the individual in accordance with the agreement, except amounts paid to a creditor, in addition to the recovery under Subsections (3)(c) and (d).

(2) If an individual voids an agreement in accordance with Subsection 13-42-125(1), the individual may recover in a civil action three times the total amount of the fees, charges, money, and payments the individual makes to the provider, in addition to the recovery under Subsection (3)(d).

(3) Subject to Subsection (4), an individual with respect to whom a provider or other person violates this chapter may recover in a civil action from the provider, the person, and any person that causes the violation:

(a) compensatory damages for injury, including noneconomic injury, caused by the violation;

(b) except as otherwise provided in Subsection (4) and subject to adjustment of the dollar amount in accordance with Subsection 13-42-132(6), with respect to a violation of Section 13-42-117, 13-42-119, 13-42-120, 13-42-121, 13-42-122, 13-42-123, 13-42-124, 13-42-126, or 13-42-127, or Subsection 13-42-128(1), (2), or (4), the greater of the amount recoverable under Subsection (3)(a) or $5,000;

(d) reasonable attorney fees and costs.

(4) In a class action, except for a violation of Subsection 13-42-128(1)(f), the minimum damages provided in Subsection (3)(b) do not apply.

(5)

(a) A provider is not liable under this section for a violation of this chapter if the provider proves that the violation was not intentional and resulted from a good-faith error notwithstanding the maintenance of procedures the provider reasonably adopts to avoid the error.

(b) An error of legal judgment with respect to a provider's obligations under this chapter is not a good-faith error as described in this Subsection (5).

(c) If, in connection with a violation, the provider receives more money than authorized by an agreement or this chapter, the defense provided by this Subsection (5) is not available unless the provider refunds the excess no later than two business days after the day on which the provider learns of the violation.

(6) The division shall assist an individual in enforcing a judgment against the surety bond or other security provided under Section 13-42-113 or 13-42-114.

§ 13-42-136 Violation of Consumer Sales Practices Act.

If an act or practice of a provider violates both this chapter and Chapter 11, Utah Consumer Sales Practices Act, an individual may not recover under both for the same act or practice.

§ 13-42-137 Statute of limitations -- Tolling.

The period prescribed in Subsection 13-2-6(6) is tolled during any period during which the provider or, if different, the defendant has materially and willfully misrepresented information required by this chapter to be disclosed to the individual, if the information so misrepresented is material to the establishment of the liability of the defendant under this chapter.

§ 13-42-138 Uniformity of application and construction.

In applying and construing this uniform act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

§ 13-42-139 Relation to Electronic Signatures in Global and National Commerce Act.

This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. Section 7003(b).

§ 13-42-141 Severability.

If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.

Chapter 43 Property Rights Ombudsman Act

Part 1 General Provisions

§ 13-43-101 Title.

This chapter is known as the "Property Rights Ombudsman Act."

§ 13-43-102 Definitions.

As used in this chapter:

(1) "Constitutional taking" or "taking" means a governmental action resulting in a taking of real property that requires compensation to the owner of the property under:

(a) the Fifth or Fourteenth Amendment of the Constitution of the United States; or

(b) Utah Constitution Article I, Section 22.

(2) "Takings and eminent domain law" means the provisions of the federal and state constitutions, the case law interpreting those provisions, and any relevant statutory provisions that:

(a) involve constitutional issues arising from the use or ownership of real property;

(b) require a governmental unit to compensate a real property owner for a constitutional taking; or

Part 2 Office of the Property Rights Ombudsman

§ 13-43-201 Office of the Property Rights Ombudsman.

(1) There is created an Office of the Property Rights Ombudsman in the Department of Commerce.

(2) The executive director of the Department of Commerce, with the concurrence of the Land Use and Eminent Domain Advisory Board created in Section 13-43-202, shall appoint attorneys with background or expertise in takings, eminent domain, and land use law to fill legal positions within the Office of the Property Rights Ombudsman.

(3) A person appointed under this section is an exempt employee.

(4) An attorney appointed under this section is an at-will employee who may be terminated without cause by:

(a) the executive director of the Department of Commerce; or

(b) an action of the land Use and Eminent Domain Advisory Board.

§ 13-43-202 Land Use and Eminent Domain Advisory Board -- Appointment -- Compensation -- Duties.

(1) There is created the Land Use and Eminent Domain Advisory Board, within the Office of the Property Rights Ombudsman, consisting of the following seven members:

(a) one individual representing special service districts, nominated by the Utah Association of Special Districts;

(b) one individual representing municipal government, nominated by the Utah League of Cities and Towns;

(d) one individual representing the residential construction industry, nominated by the Utah Home Builders Association;

(e) one individual representing the real estate industry, nominated by the Utah Association of Realtors;

(f) one individual representing the land development community, jointly nominated by the Utah Association of Realtors and the Utah Home Builders Association; and

(g) one individual who:

(i) is a citizen with experience in land use issues;

(ii) does not hold public office; and

(iii) is not currently employed, nor has been employed in the previous 12 months, by any of the entities or industries listed in Subsections (1)(a) through (f).

(2) After receiving nominations, the governor shall appoint members to the board.

(3) The term of office of each member is four years, except that the governor shall appoint three of the members of the board to an initial two-year term.

(4) Each mid-term vacancy shall be filled for the unexpired term in the same manner as an appointment under Subsections (1) and (2).

(5)

(a) Board members shall elect a chair from their number and establish rules for the organization and operation of the board.

(b) Five members of the board constitute a quorum for the conduct of the board's business.

(6) A member may not receive compensation or benefits for the member's service, but may receive per diem and travel expenses in accordance with:

(a) Section 63A-3-106;

(b) Section 63A-3-107; and

(7) A member need not give a bond for the performance of official duties.

(8) The Office of the Property Rights Ombudsman shall provide staff to the board.

(9) The board shall:

(a) receive reports from the Office of the Property Rights Ombudsman that are requested by the board;

(b) establish rules of conduct and performance for the Office of the Property Rights Ombudsman;

(d) subject to any restriction placed on a donation or contribution received under Subsection (9)(c), authorize the expenditure of donations or contributions for the Office of the Property Rights Ombudsman's benefit;

(e) receive budget recommendations from the Office of the Property Rights Ombudsman; and

(f) revise budget recommendations received under Subsection (9)(e).

(10) The board shall maintain a resource list of qualified arbitrators and mediators who may be appointed under Section 13-43-204 and qualified persons who may be appointed to render advisory opinions under Section 13-43-205.

§ 13-43-203 Office of the Property Rights Ombudsman -- Duties.

(1) The Office of the Property Rights Ombudsman shall:

(a) develop and maintain expertise in and understanding of takings, eminent domain, and land use law;

(b) clearly identify the specific information that is prepared for distribution to property owners whose land is being acquired under the provisions of Section 78B-6-505;

(c) assist state agencies and local governments in developing the guidelines required by Title 63L, Chapter 4, Constitutional Takings Issues Act;

(d) at the request of a state agency or local government, assist the state agency or local government, in analyzing actions with potential takings implications or other land use issues;

(e) advise real property owners who:

(i) have a legitimate potential or actual takings claim against a state or local government entity or have questions about takings, eminent domain, and land use law; or

(ii) own a parcel of property that is landlocked, as to the owner's rights and options with respect to obtaining access to a public street;

(f) identify state or local government actions that have potential takings implications and, if appropriate, advise those state or local government entities about those implications;

(g) provide information to private citizens, civic groups, government entities, and other interested parties about takings, eminent domain, and land use law and their rights, including a right to just compensation, and responsibilities under the takings, eminent domain, or land use laws through seminars and publications, and by other appropriate means;

(h)

(i) provide, in a form that is easily accessible, the following information on the Office of the Property Rights Ombudsman's website:

(A) the information described in Section 78B-6-505;

(B) an explanation of the term, "fee simple title";

(D) an explanation that eminent domain may include taking a recorded interest held in real property, including a mineral right;

(E) an explanation that a property owner may be compensated for a recorded interest in real property, including a mineral right; and

(F) an explanation that a property owner can request a separate valuation for a recorded interest in real property; and

(ii) ensure that the information described in Subsection (1)(h)(i) is current; and

(i)

(i) provide education and training regarding:

(A) the drafting and application of land use laws and regulations; and

(B) land use dispute resolution; and

(ii) use any money transmitted in accordance with Subsection 15A-1-209(5) to pay for any expenses required to provide the education and training described in Subsection (1)(i)(i), including grants to a land use training organization that:

(A) the Land Use and Eminent Domain Advisory Board, created in Section 13-43-202, selects and proposes; and

(B) the property rights ombudsman and the executive director of the Department of Commerce jointly approve.

(2)

(a) Neither the Office of the Property Rights Ombudsman nor its individual attorneys may represent private parties, state agencies, local governments, or any other individual or entity in a legal action that arises from or relates to a matter addressed in this chapter.

(b) An action by an attorney employed by the Office of the Property Rights Ombudsman, by a neutral third party acting as mediator or arbitrator under Section 13-43-204, or by a neutral third party rendering an advisory opinion under Section 13-43-205 or 13-43-206, taken within the scope of the duties set forth in this chapter, does not create an attorney-client relationship between the Office of the Property Rights Ombudsman, or the office's attorneys or appointees, and an individual or entity.

(3) No member of the Office of the Property Rights Ombudsman nor a neutral third party rendering an advisory opinion under Section 13-43-205 or 13-43-206, may be compelled to testify in a civil action filed concerning the subject matter of any review, mediation, or arbitration by, or arranged through, the office.

(4)

(a) Except as provided in Subsection (4)(b), evidence of a review by the Office of the Property Rights Ombudsman and the opinions, writings, findings, and determinations of the Office of the Property Rights Ombudsman are not admissible as evidence in a judicial action.

(b) Subsection (4)(a) does not apply to:

(i) actions brought under authority of Title 78A, Chapter 8, Small Claims Courts;

(ii) a judicial confirmation or review of the arbitration itself as authorized in Title 78B, Chapter 11, Utah Uniform Arbitration Act;

(iii) actions for de novo review of an arbitration award or issue brought under the authority of Subsection 13-43-204(3)(a)(i); or

(iv) advisory opinions provided for in Sections 13-43-205 and 13-43-206.

§ 13-43-204 Office of the Property Rights Ombudsman -- Arbitration or mediation of disputes.

(1) If requested by the private property owner, or in the case of a water conveyance facility either the private property owner or the facility owner of the water conveyance facility, and if otherwise appropriate, the Office of the Property Rights Ombudsman shall mediate, or conduct or arrange arbitration for:

(a) a dispute between the owner and a government entity or other type of condemning entity:

(i) involving taking or eminent domain issues;

(ii) involved in an action for eminent domain under Title 78B, Chapter 6, Part 5, Eminent Domain; or

(iii) involving relocation assistance under Title 57, Chapter 12, Utah Relocation Assistance Act; or

(b) the private property owner and the facility owner of a water conveyance facility as described in Section 73-1-15.5 regarding:

(i) the relocation of the water conveyance facility; or

(ii) a modification to the method of water delivery of the water conveyance facility.

(2) If arbitration or mediation is requested by a private property owner under this section, Section 57-12-14, or 78B-6-522, or either the private property owner or the facility owner of a water conveyance facility under Section 73-1-15.5, and arranged by the Office of the Property Rights Ombudsman, the parties shall participate in the mediation or arbitration as if the matter were ordered to mediation or arbitration by a court.

(3)

(a)

(i) In conducting or arranging for arbitration under Subsection (1), the Office of the Property Rights Ombudsman shall follow the procedures and requirements of Title 78B, Chapter 11, Utah Uniform Arbitration Act.

(ii) In applying Title 78B, Chapter 11, Utah Uniform Arbitration Act, the arbitrator and parties shall treat the matter as if:

(A) it were ordered to arbitration by a court; and

(B) the Office of the Property Rights Ombudsman or other arbitrator chosen as provided for in this section was appointed as arbitrator by the court.

(iii) For the purpose of an arbitration conducted under this section, if the dispute to be arbitrated is not already the subject of legal action, the district court having jurisdiction over the county where the private property involved in the dispute is located is the court referred to in Title 78B, Chapter 11, Utah Uniform Arbitration Act.

(iv) An arbitration award under this chapter may not be vacated under the provisions of Subsection 78B-11-124(1)(e) because of the lack of an arbitration agreement between the parties.

(b) The Office of the Property Rights Ombudsman shall issue a written statement declining to mediate, arbitrate, or to appoint an arbitrator when, in the opinion of the Office of the Property Rights Ombudsman:

(i) the issues are not ripe for review;

(ii) assuming the alleged facts are true, no cause of action exists under United States or Utah law;

(iii) all issues raised are beyond the scope of the Office of the Property Rights Ombudsman's statutory duty to review; or

(iv) the mediation or arbitration is otherwise not appropriate.

(c)

(i) The Office of the Property Rights Ombudsman shall appoint another person to arbitrate a dispute when:

(A) either party objects to the Office of the Property Rights Ombudsman serving as the arbitrator and agrees to pay for the services of another arbitrator;

(B) the Office of the Property Rights Ombudsman declines to arbitrate the dispute for a reason other than those stated in Subsection (3)(b) and one or both parties are willing to pay for the services of another arbitrator; or

(C) the Office of the Property Rights Ombudsman determines that it is appropriate to appoint another person to arbitrate the dispute with no charge to the parties for the services of the appointed arbitrator.

(ii) In appointing another person to arbitrate a dispute, the Office of the Property Rights Ombudsman shall appoint an arbitrator who is agreeable to:

(A) both parties; or

(B) the Office of the Property Rights Ombudsman and the party paying for the arbitrator.

(iii) The Office of the Property Rights Ombudsman may, on its own initiative or upon agreement of both parties, appoint a panel of arbitrators to conduct the arbitration.

(iv) The Department of Commerce may pay an arbitrator per diem and reimburse expenses incurred in the performance of the arbitrator's duties at the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107.

(d) In arbitrating a dispute, the arbitrator shall apply the relevant statutes, case law, regulations, and rules of Utah and the United States in conducting the arbitration and in determining the award.

(e)

(i) The property owner and government entity, or other condemning entity, may agree in advance of arbitration that the arbitration is binding and that no de novo review may occur.

(ii) The private property owner and facility owner of a water conveyance facility, as described in Section 73-1-15.5, may agree in advance of arbitration that the arbitration is binding and that no de novo review may occur.

(f) Arbitration by or through the Office of the Property Rights Ombudsman is not necessary before bringing legal action to adjudicate any claim.

(g) The lack of arbitration by or through the Office of the Property Rights Ombudsman does not constitute, and may not be interpreted as constituting, a failure to exhaust available administrative remedies or as a bar to bringing legal action.

(h) Arbitration under this section is not subject to Title 63G, Chapter 4, Administrative Procedures Act, or Title 78B, Chapter 6, Part 2, Alternative Dispute Resolution Act.

(i) Within 30 days after an arbitrator issues a final award, and except as provided in Subsection (3)(e), any party to the arbitration may submit the dispute, the award, or any issue upon which the award is based, to the district court for review by trial de novo.

(4) The filing with the Office of the Property Rights Ombudsman of a request for mediation or arbitration of a constitutional taking issue does not stay:

(a) a county or municipal land use decision;

(b) a land use appeal authority decision; or

(5) A member of the Office of the Property Rights Ombudsman, or an arbitrator appointed by the office, may not be compelled to testify in a civil action filed concerning the subject matter of any review, mediation, or arbitration by the Office of the Property Rights Ombudsman.

§ 13-43-205 Advisory opinion.

(1) A local government, private entity, or a potentially aggrieved person may, in accordance with Section 13-43-206, request a written advisory opinion:

(a) from a neutral third party to determine compliance with:

(i) Sections 10-20-506, 10-20-507, 10-20-602, 10-20-604, 10-20-605, 10-20-902, 10-20-904, 10-20-905, 10-20-910, 10-20-911, 10-20-912, and 10-20-1003;

(ii) Sections 17-79-506, 17-79-507, 17-79-601, 17-79-602, 17-79-603, 17-79-803, 17-79-804, 17-79-805, 17-79-811, 17-79-812, 17-79-813, and 17-79-903; and

(iii) Title 11, Chapter 36a, Impact Fees Act; and

(b) at any time before:

(i) a final decision on a land use application by a local appeal authority under Title 11, Chapter 36a, Impact Fees Act, or Section 10-20-1108 or 17-79-1008;

(ii) the deadline for filing an appeal with the district court under Title 11, Chapter 36a, Impact Fees Act, or Section 10-20-1109 or 17-79-1009, if no local appeal authority is designated to hear the issue that is the subject of the request for an advisory opinion; or

(iii) the enactment of an impact fee, if the request for an advisory opinion is a request to review and comment on a proposed impact fee facilities plan or a proposed impact fee analysis as defined in Section 11-36a-102.

(2) A private property owner may, in accordance with Section 13-43-206, request a written advisory opinion from a neutral third party to determine if a condemning entity:

(a) is in occupancy of the owner's property;

(b) is occupying the property:

(i) for a public use authorized by law; and

(ii) without colorable legal or equitable authority; and

(c) continues to occupy the property without the owner's consent, the occupancy would constitute a taking of private property for a public use without just compensation.

(3) An advisory opinion issued under Subsection (2) may justify an award of attorney fees against a condemning entity in accordance with Section 13-43-206 only if the court finds that the condemning entity:

(a) does not have a colorable claim or defense for the entity's actions; and

(b) continued occupancy without payment of just compensation and in disregard of the advisory opinion.

§ 13-43-206 Advisory opinion -- Process.

(1) A request for an advisory opinion under Section 13-43-205 shall be:

(a) filed with the Office of the Property Rights Ombudsman; and

(b) accompanied by a filing fee of $150.

(2) The Office of the Property Rights Ombudsman may establish policies providing for partial fee waivers for a person who is financially unable to pay the entire fee.

(3) A person requesting an advisory opinion need not exhaust administrative remedies, including remedies described under Section 10-20-1109 or 17-79-1009, before requesting an advisory opinion.

(4) The Office of the Property Rights Ombudsman shall:

(a) deliver notice of the request to opposing parties indicated in the request;

(b) inquire of all parties if there are other necessary parties to the dispute; and

(5) If a governmental entity is an opposing party, the Office of the Property Rights Ombudsman shall deliver the request in the manner provided for in Section 63G-7-401.

(6)

(a) The Office of the Property Rights Ombudsman shall promptly determine if the parties can agree to a neutral third party to issue an advisory opinion.

(b) If no agreement can be reached within four business days after notice is delivered in accordance with Subsections (4) and (5), the Office of the Property Rights Ombudsman shall appoint a neutral third party to issue an advisory opinion.

(7) All parties that are the subject of the request for advisory opinion shall:

(a) share equally in the cost of the advisory opinion; and

(b) provide financial assurance for payment that the neutral third party requires.

(8) The neutral third party shall comply with the provisions of Section 78B-11-109, and shall promptly:

(a) seek a response from all necessary parties to the issues raised in the request for advisory opinion;

(b) investigate and consider all responses; and

(c) issue a written advisory opinion within 15 business days after the appointment of the neutral third party under Subsection (6)(b), unless:

(i) the parties agree to extend the deadline; or

(ii) the neutral third party determines that the matter is complex and requires additional time to render an opinion, which may not exceed 30 calendar days.

(9) An advisory opinion shall include a statement of the facts and law supporting the opinion's conclusions.

(10)

(a) Copies of any advisory opinion issued by the Office of the Property Rights Ombudsman shall be delivered as soon as practicable to all necessary parties.

(b) A copy of the advisory opinion shall be delivered to the government entity in the manner provided for in Section 63G-7-401.

(11) An advisory opinion issued by the Office of the Property Rights Ombudsman is not binding on any party to, nor admissible as evidence in, a dispute involving land use law except as provided in Subsection (12).

(12) Subject to Subsection (13), if the Office of the Property Rights Ombudsman issues an advisory opinion described in this section, and if the same issue that is the subject of the advisory opinion is subsequently litigated in court on a cause of action alleging the same facts and circumstances that are at issue in the advisory opinion, and if the court resolves the issue consistent with the advisory opinion, the court may award the substantially prevailing party:

(a) reasonable attorney fees and court costs pertaining to the development of the cause of action from the date the Office of the Property Rights Ombudsman delivers the advisory opinion to the date of the court's resolution; and

(b) if the court finds that the opposing party knowingly and intentionally violated the law governing the cause of action:

(i) a civil penalty of $250 per day; and

(ii) consequential damages;

(13)

(a) Subsection (12) does not apply unless the resolution described in Subsection (12)(a) is final.

(b) The civil penalty described in Subsection (12)(b)(i):

(i) begins to accrue on the later of:

(A) 30 days after the day on which the Office of the Property Rights Ombudsman delivers the advisory opinion; or

(B) the day on which the substantially prevailing party or opposing party filed the action in court; and

(ii) ends the day on which the court enters a final judgment.

(c) A court may not impose a civil penalty against a party under Subsection (12)(b)(i) unless the party is the land use applicant or a government entity.

(14) In addition to any amounts awarded under Subsection (12), if the dispute described in Subsection (12) in whole or in part concerns an impact fee, and if the result of the litigation requires that the political subdivision or private entity refund the impact fee in accordance with Section 11-36a-603, the political subdivision or private entity shall refund the impact fee in an amount that is based on the difference between the impact fee paid and what the impact fee should have been if the political subdivision or private entity had correctly calculated the impact fee.

(15) Nothing in this section is intended to create a new cause of action under land use law.

(16) Unless filed by the local government, a request for an advisory opinion under Section 13-43-205 does not stay the progress of a land use application, the effect of a land use decision, or the condemning entity's occupancy of a property.

Chapter 44 Protection of Personal Information Act

Part 1 General Provisions

§ 13-44-101 Title.

This chapter is known as the "Protection of Personal Information Act."

§ 13-44-102 Definitions.

As used in this chapter:

(1)

(a) "Breach of system security" means an unauthorized acquisition of computerized data maintained by a person that compromises the security, confidentiality, or integrity of personal information.

(b) "Breach of system security" does not include the acquisition of personal information by an employee or agent of the person possessing unencrypted computerized data unless the personal information is used for an unlawful purpose or disclosed in an unauthorized manner.

(2) "Consumer" means a natural person.

(3) "Financial institution" means the same as that term is defined in 15 U.S.C. Sec. 6809.

(4)

(a) "Personal information" means a person's first name or first initial and last name, combined with any one or more of the following data elements relating to that person when either the name or date element is unencrypted or not protected by another method that renders the data unreadable or unusable:

(i) Social Security number;

(ii)

(A) financial account number, or credit or debit card number; and

(B) any required security code, access code, or password that would permit access to the person's account; or

(iii) driver license number or state identification card number.

(b) "Personal information" does not include information regardless of its source, contained in federal, state, or local government records or in widely distributed media that are lawfully made available to the general public.

(5) "Record" includes materials maintained in any form, including paper and electronic.

§ 13-44-103 Applicability.

This chapter does not apply to a financial institution or an affiliate, as defined in 15 U.S.C. Sec. 6809, of a financial institution.

Part 2 Protection of Personal Information

§ 13-44-201 Protection of personal information.

(1) Any person who conducts business in the state and maintains personal information shall implement and maintain reasonable procedures to:

(a) prevent unlawful use or disclosure of personal information collected or maintained in the regular course of business; and

(b) destroy, or arrange for the destruction of, records containing personal information that are not to be retained by the person.

(2) The destruction of records under Subsection (1)(b) shall be by:

(a) shredding;

(b) erasing; or

§ 13-44-202 Personal information -- Disclosure of system security breach.

(1)

(a) A person who owns or licenses computerized data that includes personal information concerning a Utah resident shall, when the person becomes aware of a breach of system security, conduct in good faith a reasonable and prompt investigation to determine the likelihood that personal information has been or will be misused for identity theft or fraud purposes.

(b) If an investigation under Subsection (1)(a) reveals that the misuse of personal information for identity theft or fraud purposes has occurred, or is reasonably likely to occur, the person shall provide notification to each affected Utah resident.

(c) If an investigation under Subsection (1)(a) reveals that the misuse of personal information relating to 500 or more Utah residents, for identity theft or fraud purposes, has occurred or is reasonably likely to occur, the person shall, in addition to the notification required in Subsection (1)(b), provide notification to:

(i) the Office of the Attorney General; and

(ii) the Utah Cyber Center created in Section 63A-16-1102.

(d) If an investigation under Subsection (1)(a) reveals that the misuse of personal information relating to 1,000 or more Utah residents, for identity theft or fraud purposes, has occurred or is reasonably likely to occur, the person shall, in addition to the notification required in Subsections (1)(b) and (c), provide notification to each consumer reporting agency that compiles and maintains files on consumers on a nationwide basis, as defined in 15 U.S.C. Sec. 1681a.

(2) A person required to provide notification under Subsection (1) shall provide the notification in the most expedient time possible without unreasonable delay:

(a) considering legitimate investigative needs of law enforcement, as provided in Subsection (4)(a);

(b) after determining the scope of the breach of system security; and

(3)

(a) A person who maintains computerized data that includes personal information that the person does not own or license shall notify and cooperate with the owner or licensee of the information of any breach of system security immediately following the person's discovery of the breach if misuse of the personal information occurs or is reasonably likely to occur.

(b) Cooperation under Subsection (3)(a) includes sharing information relevant to the breach with the owner or licensee of the information.

(4)

(a) Notwithstanding Subsection (2), a person may delay providing notification under Subsection (1)(b) at the request of a law enforcement agency that determines that notification may impede a criminal investigation.

(b) A person who delays providing notification under Subsection (4)(a) shall provide notification in good faith without unreasonable delay in the most expedient time possible after the law enforcement agency informs the person that notification will no longer impede the criminal investigation.

(5)

(a) A notification required by Subsection (1)(b) may be provided:

(i) in writing by first-class mail to the most recent address the person has for the resident;

(ii) electronically, if the person's primary method of communication with the resident is by electronic means, or if provided in accordance with the consumer disclosure provisions of 15 U.S.C. Section 7001;

(iii) by telephone, including through the use of automatic dialing technology not prohibited by other law; or

(iv) for residents of the state for whom notification in a manner described in Subsections (5)(a)(i) through (iii) is not feasible, by publishing notice of the breach of system security:

(A) in a newspaper of general circulation; and

(B) as required in Section 45-1-101.

(b) If a person maintains the person's own notification procedures as part of an information security policy for the treatment of personal information the person is considered to be in compliance with the notification requirement in Subsection (1)(b) if the procedures are otherwise consistent with this chapter's timing requirements and the person notifies each affected Utah resident in accordance with the person's information security policy in the event of a breach.

(c) A person who is regulated by state or federal law and maintains procedures for a breach of system security under applicable law established by the primary state or federal regulator is considered to be in compliance with this part if the person notifies each affected Utah resident in accordance with the other applicable law in the event of a breach.

(6)

(a) The following information may be deemed confidential and classified as a protected record under Subsections 63G-2-305(1) and (2) if the requirements of Subsection 63G-2-309(1)(a)(i) are met:

(i) a notification submitted under Subsection (1)(c), including supporting information provided under Subsection (6)(b); and

(ii) information produced by the Office of the Attorney General or the Utah Cyber Center in providing coordination or assistance to the person providing notification under Subsection (1)(c).

(b) A person providing notification under Subsection (1)(c) to the Office of the Attorney General or the Utah Cyber Center of a breach of system security shall include the following information in the notification, to the extent the information is known or available at the time the person provides the notification:

(i) the date the breach of system security occurred;

(ii) the date the breach of system security was discovered;

(iii) the total number of people affected by the breach of system security, including the total number of Utah residents affected;

(iv) the type of personal information involved in the breach of system security; and

(v) a short description of the breach of system security that occurred.

(7) A waiver of this section is contrary to public policy and is void and unenforceable.

Part 3 Enforcement

§ 13-44-301 Enforcement -- Confidentiality agreement -- Penalties.

(1) The attorney general may enforce this chapter's provisions.

(2)

(a) Nothing in this chapter creates a private right of action.

(b) Nothing in this chapter affects any private right of action existing under other law, including contract or tort.

(3) A person who violates this chapter's provisions is subject to a civil penalty of:

(a) no greater than $2,500 for a violation or series of violations concerning a specific consumer; and

(b) no greater than $100,000 in the aggregate for related violations concerning more than one consumer, unless:

(i) the violations concern:

(A) 10,000 or more consumers who are residents of the state; and

(B) 10,000 or more consumers who are residents of other states; or

(ii) the person agrees to settle for a greater amount.

(4)

(a) In addition to the penalties provided in Subsection (3), the attorney general may seek, in an action brought under this chapter:

(i) injunctive relief to prevent future violations of this chapter; and

(ii) attorney fees and costs.

(b) Notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, if the attorney general brings an action under this chapter in the district court, the attorney general shall bring the action in:

(i) Salt Lake City; or

(ii) the county in which resides a consumer who is affected by the violation.

(5) The attorney general shall deposit any amount received under Subsection (3), (4), or (10) into the Attorney General Litigation Fund created in Section 67-5-40.

(6) In enforcing this chapter, the attorney general may:

(a) investigate the actions of any person alleged to violate Section 13-44-201 or 13-44-202;

(b) subpoena a witness;

(d) require the production of books, papers, contracts, records, or other information relevant to an investigation;

(e) conduct an adjudication in accordance with Title 63G, Chapter 4, Administrative Procedures Act, to enforce a civil provision under this chapter; and

(f) enter into a confidentiality agreement in accordance with Subsection (7).

(7)

(a) If the attorney general has reasonable cause to believe that an individual is in possession, custody, or control of information that is relevant to enforcing this chapter, the attorney general may enter into a confidentiality agreement with the individual.

(b) In a civil action brought under this chapter, a court may issue a confidentiality order that incorporates the confidentiality agreement described in Subsection (7)(a).

(c) A confidentiality agreement entered into under Subsection (7)(a) or a confidentiality order issued under Subsection (7)(b) may:

(i) address a procedure;

(ii) address testimony taken, a document produced, or material produced under this section;

(iii) provide whom may access testimony taken, a document produced, or material produced under this section;

(iv) provide for safeguarding testimony taken, a document produced, or material produced under this section; or

(v) require that the attorney general:

(A) return a document or material to an individual; or

(B) notwithstanding Section 63A-12-105 or a retention schedule created in accordance with Section 63G-2-604, destroy the document or material at a designated time.

(8) A subpoena issued under Subsection (6) may be served by certified mail.

(9) A person's failure to respond to a request or subpoena from the attorney general under Subsection (6)(b), (c), or (d) is a violation of this chapter.

(10)

(a) The attorney general may inspect and copy all records related to the business conducted by the person alleged to have violated this chapter, including records located outside the state.

(b) For records located outside of the state, the person who is found to have violated this chapter shall pay the attorney general's expenses to inspect the records, including travel costs.

(c) Upon notification from the attorney general of the attorney general's intent to inspect records located outside of the state, the person who is found to have violated this chapter shall pay the attorney general $500, or a higher amount if $500 is estimated to be insufficient, to cover the attorney general's expenses to inspect the records.

(d) To the extent an amount paid to the attorney general by a person who is found to have violated this chapter is not expended by the attorney general, the amount shall be refunded to the person who is found to have violated this chapter.

(e) The Division of Corporations and Commercial Code or any other relevant entity shall revoke any authorization to do business in this state of a person who fails to pay any amount required under this Subsection (10).

(11)

(a) Subject to Subsection (11)(c), the attorney general shall keep confidential a procedure agreed to, testimony taken, a document produced, or material produced under this section pursuant to a subpoena, confidentiality agreement, or confidentiality order, unless the individual who agreed to the procedure, provided testimony, produced the document, or produced material waives confidentiality in writing.

(b) Subject to Subsections (11)(c) and (11)(d), the attorney general may use, in an enforcement action taken under this section, testimony taken, a document produced, or material produced under this section to the extent the use is not restricted or prohibited by a confidentiality agreement or a confidentiality order.

(c) The attorney general may use, in an enforcement action taken under this section, testimony taken, a document produced, or material produced under this section that is restricted or prohibited from use by a confidentiality agreement or a confidentiality order if the individual who provided testimony or produced the document or material waives the restriction or prohibition in writing.

(d) The attorney general may disclose testimony taken, a document produced, or material produced under this section, without consent of the individual who provided the testimony or produced the document or material, or the consent of an individual being investigated, to:

(i) a grand jury; or

(ii) a federal or state law enforcement officer, if the person from whom the information was obtained is notified 20 days or greater before the day on which the information is disclosed, and the federal or state law enforcement officer certifies that the federal or state law enforcement officer will:

(A) maintain the confidentiality of the testimony, document, or material; and

(B) use the testimony, document, or material solely for an official law enforcement purpose.

(12)

(a) An administrative action filed under this chapter shall be commenced no later than 10 years after the day on which the alleged breach of system security last occurred.

(b) A civil action under this chapter shall be commenced no later than five years after the day on which the alleged breach of system security last occurred.

Chapter 45 Consumer Credit Protection Act

Part 1 General Provisions

§ 13-45-101 Title.

This chapter is known as the "Consumer Credit Protection Act."

§ 13-45-102 Definitions.

As used in this chapter:

(1) "Consumer" means an individual who is not a protected consumer.

(2) "Consumer reporting agency" means a person who, for a monetary fee, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing credit or consumer reports to third persons.

(3) "Consumer who is subject to a protected consumer security freeze" means an individual:

(a) for whom a credit reporting agency placed a security freeze under Section 13-45-503; and

(b) who, on the day on which a request for the removal of the security freeze is submitted under Section 13-45-504, is not a protected consumer.

(4) "Credit report" means a consumer report, as defined in the Fair Credit Reporting Act, 15 U.S.C. Sec. 1681a, that is used or collected in whole or part for the purpose of serving as a factor in establishing a consumer's eligibility for credit for personal, family, or household purposes.

(5) "File" means the same as that term is defined in 15 U.S.C. Sec. 1681a.

(6) "Incapacitated person" means an individual who is incapacitated, as defined in Section 75-1-201.

(7) "Normal business hours" means Sunday through Saturday, between the hours of 6:00 a.m. and 9:30 p.m., Mountain Standard or Mountain Daylight Time.

(8)

(a) "Personal information" means personally identifiable financial information:

(i) provided by a consumer to another person;

(ii) resulting from any transaction with the consumer or any service performed for the consumer; or

(iii) otherwise obtained by another person.

(b) "Personal information" does not include:

(i) publicly available information, as that term is defined in Section 13-61-101; or

(ii) any list, description, or other grouping of consumers, and publicly available information relating to a consumer, that is derived without using any nonpublic personal information.

(c) Notwithstanding Subsection (8)(b), "personal information" includes any list, description, or other grouping of consumers, and publicly available information relating to a consumer, that is derived using any nonpublic personal information other than publicly available information.

(9)

(a) "Proper identification" means the same as that term is defined in 15 U.S.C. Sec. 1681h(a)(1);

(b) "Proper identification" includes:

(i) the consumer's full name, including first, last, and middle names and any suffix;

(ii) any name the consumer previously used;

(iii) the consumer's current and recent full addresses, including street address, any apartment number, city, state, and ZIP code;

(iv) the consumer's Social Security number; and

(v) the consumer's date of birth.

(10) "Protected consumer" means an individual who, at the time a request for a security freeze is made, is:

(a) under 16 years old;

(b) an incapacitated person; or

(11) "Protected person" means the same as that term is defined in Section 75-5b-102.

(12) "Record" means a compilation of information that:

(a) identifies a protected consumer;

(b) is created by a consumer reporting agency solely for the purpose of complying with this section; and

(c) may not be created or used to consider the protected consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.

(13) "Representative" means a person that provides to a consumer reporting agency sufficient proof of authority to act on behalf of a protected consumer.

(14)

(a) "Sufficient proof of authority" means documentation that shows that a person has authority to act on behalf of a protected consumer.

(b) "Sufficient proof of authority" includes:

(i) a court order;

(ii) a lawfully executed power of attorney; or

(iii) a written, notarized statement signed by the person that expressly describes the person's authority to act on behalf of the protected consumer.

(15)

(a) "Sufficient proof of identification" means information or documentation that identifies a protected consumer or a representative.

(b) "Sufficient proof of identification" includes:

(i) a Social Security number or a copy of a Social Security card issued by the United States Social Security Administration;

(ii) a certified or official copy of a birth certificate; or

(iii) a copy of a government issued driver license or identification card.

Part 2 Security Freeze

§ 13-45-201 Security freeze.

(1) As used in this part:

(a) "Security freeze" means a prohibition, consistent with the provisions of this section, on a consumer reporting agency's furnishing of a consumer's credit report to a third party intending to use the credit report to determine the consumer's eligibility for credit.

(b) "Unique personal identifier" means a personal identification number, password, or other secure form of identity verification accepted by a consumer reporting agency and intended for use by a consumer to place, remove, or temporarily remove a security freeze in accordance with this chapter.

(2)

(a) A consumer may request a security freeze on a consumer's credit report by:

(i) submitting a request for a security freeze to the consumer reporting agency by:

(A) certified mail to the postal address identified by the consumer reporting agency in accordance with Subsection (5); or

(B) electronic means developed by the consumer reporting agency in accordance with Subsection (5); and

(ii) providing proper identification to the consumer reporting agency.

(b) Upon receipt of a request described in Subsection (2)(a), the consumer reporting agency shall:

(i) place a security freeze on the consumer's credit report:

(A) if the consumer submits the request by certified mail, as soon as practicable but no later than five business days after the business day on which the consumer reporting agency receives the request and the consumer's proper identification;

(B) if the consumer submits the request by a contact method described in Subsection (5)(b)(ii) or (iii) that is not a mobile application, as soon as practicable but no later than 24 hours after the consumer reporting agency receives the request and the consumer's proper identification; or

(C) if the consumer submits the request by mobile application, within 15 minutes after the consumer reporting agency receives the request and the consumer's proper identification;

(ii) provide the consumer a unique personal identifier, unless the consumer reporting agency previously provided the consumer a unique personal identifier; and

(iii) within five business days after the business day on which the consumer reporting agency places the security freeze, provide the consumer confirmation that the consumer reporting agency placed the security freeze.

(3) If a security freeze is in place, a consumer reporting agency may not release a consumer's credit report, or information from the credit report, to a third party that intends to use the information to determine a consumer's eligibility for credit without prior authorization from the consumer.

(4)

(a) Notwithstanding Subsection (3), a consumer reporting agency may communicate to a third party requesting a consumer's credit report that a security freeze is in effect on the consumer's credit report.

(b) If a third party requesting a consumer's credit report in connection with the consumer's application for credit is notified of the existence of a security freeze under Subsection (4)(a), the third party may treat the consumer's application as incomplete.

(5)

(a) A consumer reporting agency shall develop a contact method to receive and process a consumer's request to place, remove, or temporarily remove a security freeze.

(b) A contact method under Subsection (5)(a) shall include:

(i) a postal address;

(ii) an electronic contact method chosen by the consumer reporting agency, which may include the use of fax, Internet, or other electronic means; and

(iii) the use of telephone in a manner that is consistent with any federal requirements placed on the consumer reporting agency.

(6) A security freeze placed under this section may be removed only in accordance with Section 13-45-202.

(7)

(a) The time requirement described in Subsection (2)(b)(i)(B) or (C), as applicable, does not apply if the consumer reporting agency's ability to place the security freeze is prevented by:

(i) an act of God, including fire, earthquakes, hurricanes, storms, or similar natural disaster or phenomena;

(ii) unauthorized or illegal acts by a third party, including terrorism, sabotage, riot, vandalism, labor strikes or disputes disrupting operations, or similar occurrence;

(iii) operational interruption, including electrical failure, unanticipated delay in equipment or replacement part delivery, computer hardware or software failures inhibiting response time, or similar disruption;

(iv) governmental action, including emergency orders or regulations, judicial or law enforcement action, or similar directives;

(v) regularly scheduled maintenance, during other than normal business hours, of, or updates to, the consumer reporting agency's systems; or

(vi) commercially reasonable maintenance of, or repair to, the consumer reporting agency's systems that is unexpected or unscheduled.

(b) In the event of a circumstance described in Subsection (7)(a), the consumer reporting agency shall place the security freeze as soon as practicable.

§ 13-45-202 Removal of security freeze -- Requirements and timing.

(1) A consumer reporting agency shall remove a security freeze from a consumer's credit report only if:

(a)

(i) the consumer reporting agency receives the consumer's request through the contact method established and required in accordance with Subsection 13-45-201(5); and

(ii) the consumer reporting agency receives the consumer's proper identification or unique personal identifier; or

(b) the consumer makes a material misrepresentation of fact in connection with the placement of the security freeze and the consumer reporting agency notifies the consumer in writing before removing the security freeze.

(2) A consumer reporting agency shall temporarily remove a security freeze upon receipt of:

(a) the consumer's request through the contact method established by the consumer reporting agency in accordance with Subsection 13-45-201(5);

(b) the consumer's proper identification or unique personal identifier; and

(3) A consumer reporting agency shall remove or temporarily remove a security freeze from a consumer's credit report within:

(a) three business days after the business day on which the consumer's written request to remove the security freeze is received by the consumer reporting agency at the postal address chosen by the consumer reporting agency in accordance with Subsection 13-45-201(5)(b)(i); or

(b) 15 minutes after the consumer's request is received by the consumer reporting agency through a contact method described in Subsection 13-45-201(5)(b)(ii) or (iii), and includes the consumer's unique personal identifier.

(4)

(a) The time requirement described in Subsection (3)(b) does not apply if the consumer reporting agency's ability to remove the security freeze is prevented by:

(i) an act of God, including fire, earthquakes, hurricanes, storms, or similar natural disaster or phenomena;

(ii) unauthorized or illegal acts by a third party, including terrorism, sabotage, riot, vandalism, labor strikes or disputes disrupting operations, or similar occurrence;

(iv) governmental action, including emergency orders or regulations, judicial or law enforcement action, or similar directives;

(v) regularly scheduled maintenance, during other than normal business hours, of, or updates to, the consumer reporting agency's systems; or

(vi) commercially reasonable maintenance of, or repair to, the consumer reporting agency's systems that is unexpected or unscheduled.

(b) In the event of a circumstance described in Subsection (4)(a), the consumer reporting agency shall remove the security freeze as soon as practicable.

§ 13-45-203 Exceptions.

(1) Notwithstanding Section 13-45-201, a consumer reporting agency may furnish a consumer's credit report to a third party if:

(a)

(i) the purpose of the credit report is to:

(A) use the credit report for purposes permitted under 15 U.S.C. Sec. 1681b(c); or

(B) review the consumer's account with the third party, including for account maintenance or monitoring, credit line increases, or other upgrades or enhancements; or

(ii)

(A) the purpose of the credit report is to:

(I) review the consumer's account with another person; or

(II) collect on a financial obligation owed by the consumer to another person; and

(B) use the credit report for purposes permitted under 15 U.S.C. Sec. 1681b(c); or

(b) the third party requesting the credit report is a subsidiary, affiliate, agent, assignee, or prospective assignee of the person holding the consumer's account or to whom the consumer owes a financial obligation.

(2)

(a) The consumer's request for a security freeze does not prohibit the consumer reporting agency from disclosing the consumer's credit report for other than credit related purposes consistent with the definition of credit report found in Section 13-45-102.

(b) The following list identifies the types of credit report disclosures by consumer reporting agencies to third parties that are not prohibited by a security freeze:

(i) the third party does not use the credit report for the purpose of serving as a factor in establishing a consumer's eligibility for credit;

(ii) the third party is acting under a court order, warrant, or subpoena requiring release of the credit report;

(iii) the third party is a child support agency, or its agent or assignee, acting under Part D, Title IV of the Social Security Act or a similar state law;

(iv) the federal Department of Health and Human Services or a similar state agency, or its agent or assignee, investigating Medicare or Medicaid fraud;

(v)

(A) the purpose of the credit report is to investigate or collect delinquent taxes, assessments, or unpaid court orders; and

(B) the third party is:

(I) the federal Internal Revenue Service;

(II) a state taxing authority;

(III) the Department of Motor Vehicles;

(IV) a county, municipality, or other entity with taxing authority;

(V) a federal, state, or local law enforcement agency; or

(VI) the agent or assignee of any entity listed in Subsections (1)(b) and (2)(b)(v)(B);

(vi) the third party is administering a credit file monitoring subscription to which the consumer has subscribed; or

(vii) the third party requests the credit report for the sole purpose of providing the consumer with a copy of the consumer's credit report or credit score upon the consumer's request.

(3) Section 13-45-201 does not apply to:

(a) a consumer reporting agency, the sole purpose of which is to resell credit information by assembling and merging information contained in the database of another consumer reporting agency and that does not maintain a permanent database of credit information from which a consumer's credit report is produced;

(b) a check services or fraud prevention services company that issues:

(i) reports on incidents of fraud; or

(ii) authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar methods of payment; or

(c) a deposit account information service company that issues reports concerning account closures based on fraud, substantial overdrafts, automated teller machine abuse, or similar information concerning a consumer to a requesting financial institution for the purpose of evaluating a consumer's request to create a deposit account.

(4) Nothing in this chapter prohibits a person from obtaining, aggregating, or using information lawfully obtained from public records in a manner that does not otherwise violate this chapter.

§ 13-45-204 Fees for security freeze.

(1) A consumer reporting agency may not charge a fee for placing, removing, or temporarily removing a security freeze.

(2) A consumer reporting agency may not charge a fee to download or install a mobile application through which a person places or removes a security freeze.

§ 13-45-205 Changes to information in a credit report subject to a security freeze.

(1) If a credit report is subject to a security freeze, a consumer reporting agency shall notify the consumer who is the subject of the credit report within 30 days if the consumer reporting agency changes the consumer's:

(a) name;

(b) date of birth;

(d) address.

(2)

(a) Notwithstanding Subsection (1), a consumer reporting agency may make technical modifications to information in a credit report that is subject to a security freeze without providing notification to the consumer.

(b) Technical modifications under Subsection (2)(a) include:

(i) the addition or subtraction of abbreviations to names and addresses; and

(ii) transpositions or corrections of incorrect numbering or spelling.

(3) When providing notice of a change of address under Subsection (1), the consumer reporting agency shall provide notice to the consumer at both the new address and the former address.

Part 3 Protection of Personal Information

§ 13-45-301 Protection of personal information.

(1) Except as allowed by other law, a person may not display a Social Security number in a manner or location that is likely to be open to public view.

(2) The state, or a branch, agency, or political subdivision of the state, may not employ or contract for the employment of an inmate in any Department of Corrections facility or county jail in any capacity that would allow any inmate access to any other person's personal information.

Part 4 Enforcement

§ 13-45-401 Enforcement -- Confidentiality agreement -- Penalties.

(1) The attorney general may enforce the provisions of this chapter.

(2) A person who violates a provision of this chapter is subject to a civil fine of:

(a) no greater than $2,500 for a violation or series of violations concerning a specific consumer; and

(b) no greater than $100,000 in the aggregate for related violations concerning more than one consumer, unless:

(i) the violations concern:

(A) 10,000 or more consumers who are residents of the state; and

(B) 10,000 or more consumers who are residents of other states; or

(ii) the person agrees to settle for a greater amount.

(3)

(a) In addition to the penalties provided in Subsection (2), the attorney general may seek, in an action brought under this chapter:

(i) injunctive relief to prevent future violations of this chapter; and

(ii) attorney fees and costs.

(b) Notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, if the attorney general brings an action under this chapter in the district court, the attorney general shall bring the action in:

(i) Salt Lake City; or

(ii) the county in which resides a consumer who is the subject of a credit report on which a violation occurs.

(4) The attorney general shall deposit any amount received under Subsection (2) or (3) into the Attorney General Litigation Fund created in Section 67-5-40.

(5)

(b) In a civil action brought under this chapter, a court may issue a confidentiality order that incorporates the confidentiality agreement described in Subsection (5)(a).

(c) A confidentiality agreement entered into under Subsection (5)(a) or a confidentiality order issued under Subsection (5)(b) may:

(i) address a procedure;

(ii) address testimony taken, a document produced, or material produced under this section;

(iii) provide whom may access testimony taken, a document produced, or material produced under this section;

(iv) provide for safeguarding testimony taken, a document produced, or material produced under this section; or

(v) require that the attorney general:

(A) return a document or material to an individual; or

(B) notwithstanding Section 63A-12-105 or a retention schedule created in accordance with Section 63G-2-604, destroy the document or material at a designated time.

(6)

(a) Subject to Subsection (6)(c), the attorney general shall keep confidential a procedure agreed to, testimony taken, a document produced, or material produced under this section pursuant to a subpoena, confidentiality agreement, or confidentiality order, unless the individual who agreed to the procedure, provided testimony, or produced the document or material waives confidentiality in writing.

(b) Subject to Subsections (6)(c) and (6)(d), the attorney general may use, in an enforcement action taken under this section, testimony taken, a document produced, or material produced under this section to the extent the use is not restricted or prohibited by a confidentiality agreement or a confidentiality order.

(c) The attorney general may use, in an enforcement action taken under this section, testimony taken, a document produced, or material produced under this section that is restricted or prohibited from use by a confidentiality agreement or a confidentiality order if the individual who provided testimony, produced the document, or produced the material waives the restriction or prohibition in writing.

(d) The attorney general may disclose testimony taken, a document produced, or material produced under this section, without consent of the individual who provided the testimony, produced the document, or produced the material, or without the consent of an individual being investigated, to:

(i) a grand jury; or

(A) maintain the confidentiality of the testimony, document, or material; and

(B) use the testimony, document, or material solely for an official law enforcement purpose.

(7) A civil action filed under this chapter shall be commenced no later than five years after the day on which the alleged violation last occurred.

Part 5 Credit Report Protection for Minors

§ 13-45-501 Title.

This part is known as "Credit Report Protection for Minors."

§ 13-45-502 Definitions.

As used in this part, "security freeze" means:

(1) if a consumer reporting agency does not have a file that pertains to a protected consumer, a restriction that:

(a) is placed on the protected consumer's record in accordance with this part; and

(b) except as otherwise provided in this part, prohibits the consumer reporting agency from releasing the protected consumer's record; or

(2) if a consumer reporting agency has a file that pertains to the protected consumer, a restriction that:

(a) is placed on the protected consumer's credit report in accordance with this part; and

(b) except as otherwise provided in this part, prohibits the consumer reporting agency from releasing the protected consumer's credit report or any information derived from the protected consumer's credit report.

§ 13-45-503 Applicability.

This part does not apply to the use of a protected consumer's credit report or record by:

(1) a person administering a credit file monitoring subscription service to which:

(a) the protected consumer has subscribed; or

(b) the protected consumer's representative has subscribed on the protected consumer's behalf;

(2) a person who, upon request from the protected consumer or the protected consumer's representative, provides the protected consumer or the protected consumer's representative with a copy of the protected consumer's credit report;

(3) a check services or fraud prevention services company that issues:

(a) reports on incidents of fraud; or

(b) authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar payment methods;

(4) a deposit account information service company that issues reports regarding account closures due to fraud, substantial overdrafts, automated teller machine abuse, or similar information regarding an individual to inquiring banks or other financial institutions for use only in reviewing an individual's request for a deposit account at the inquiring bank or financial institution;

(5) an insurance company for the purpose of conducting the insurance company's ordinary business;

(6) a consumer reporting agency that:

(a) only resells credit information by assembling and merging information contained in a database of another consumer reporting agency or multiple consumer reporting agencies; and

(b) does not maintain a permanent database of credit information from which new credit reports are produced; or

(7) a consumer reporting agency's database or file that consists of information that:

(a) concerns and is used for:

(i) criminal record information;

(ii) fraud prevention or detection;

(iii) personal loss history information; or

(iv) employment, tenant, or individual background screening; and

(b) is not used for credit granting purposes.

§ 13-45-504 Security freeze for protected consumer.

(1) A consumer reporting agency shall place a security freeze for a protected consumer if:

(a) the consumer reporting agency receives a request from the protected consumer's representative for the placement of the security freeze; and

(b) the protected consumer's representative:

(i) submits the request described in Subsection (1)(a):

(A) to the address or other point of contact provided by the consumer reporting agency; and

(B) in the manner specified by the consumer reporting agency;

(ii) submits to the consumer reporting agency:

(A) sufficient proof of identification of the protected consumer;

(B) sufficient proof of identification of the protected consumer's representative; and

(iii) if applicable, pays the consumer reporting agency a fee described in Subsection 13-45-506(2).

(2) If a consumer reporting agency does not have a file that pertains to a protected consumer when the consumer reporting agency receives a request described in Subsection (1), the consumer reporting agency shall create a record for the protected consumer.

(3) A consumer reporting agency shall place a security freeze for a protected consumer within 30 days after the day on which the consumer reporting agency receives a request described in Subsection (1).

(4) After a consumer reporting agency places a security freeze under this section, the consumer reporting agency may not release the protected consumer's credit report, any information derived from the protected consumer's credit report, or any record created for the protected consumer, unless the security freeze for the protected consumer is removed in accordance with Section 13-45-505.

(5) A security freeze that is placed in accordance with this section shall remain in effect until:

(a) the protected consumer's representative or the consumer who is subject to a protected consumer security freeze requests the consumer reporting agency remove the security freeze in accordance with Subsection 13-45-505(1); or

(b) the security freeze is removed in accordance with Subsection 13-45-505(3).

§ 13-45-505 Removal of security freeze for protected consumer.

(1) To remove a security freeze that is placed under this part, the protected consumer's representative or the consumer who is subject to a protected consumer security freeze shall:

(a) submit a request for the removal of the security freeze to the consumer reporting agency:

(i) at the address or other point of contact provided by the consumer reporting agency; and

(ii) in the manner specified by the consumer reporting agency;

(b) provide to the consumer reporting agency:

(i) in the case of a request by a protected consumer's representative:

(A) sufficient proof of identification of the protected consumer;

(B) sufficient proof of identification of the protected consumer's representative; and

(ii) in the case of a request by the consumer who is subject to a protected consumer security freeze:

(A) sufficient proof of identification of the consumer who is subject to a protected consumer security freeze; and

(B) proof that the consumer who is subject to a protected consumer security freeze is not a protected consumer; and

(2) Within 30 days after the day on which a consumer reporting agency receives a request under Subsection (1), the consumer reporting agency shall remove the security freeze.

(3) A consumer reporting agency may remove a security freeze for a protected consumer or delete a record of a protected consumer if the security freeze was placed or the record was created based on a material misrepresentation of fact by the protected consumer or the protected consumer's representative.

§ 13-45-506 Fees.

(1) Except as provided in Subsection (2), a consumer reporting agency may not charge a fee for any service performed under this part.

(2) A consumer reporting agency may charge a reasonable fee, which does not exceed $5, for each placement or removal of a security freeze under this part, unless:

(a) the protected consumer's representative:

(i) has obtained a police report that states the protected consumer is the alleged victim of identity fraud; and

(ii) provides a copy of the report to the consumer reporting agency; or

(b)

(i) the protected consumer is less than 16 years of age at the time the request is submitted to the consumer reporting agency; and

(ii) the consumer reporting agency has a file that pertains to the protected consumer.

Part 6 Prohibitions

§ 13-45-601 Consumer reporting agency -- Prohibitions.

(1) Except as provided in Subsection (2), a consumer reporting agency may not report information relating to:

(a) an arrest not resulting in a conviction;

(b) a criminal charge not resulting in a conviction;

(d) a pardoned conviction.

(2) A consumer reporting agency may report:

(a) a pending criminal charge; or

(b) an arrest that has not reached a final disposition.

Chapter 47 Private Employer Verification Act

Part 1 General Provisions

§ 13-47-101 Title.

This chapter is known as the "Private Employer Verification Act."

§ 13-47-102 Definitions.

As used in this chapter:

(1) "Department" means the Department of Commerce.

(2) "Employee" means an individual:

(a) who is hired to perform services in Utah; and

(b) to whom a private employer provides a federal form required for federal taxation purposes to report income paid to the individual for the services performed.

(3)

(a) Except as provided in Subsection (3)(b), "private employer" means a person who for federal taxation purposes is required to provide a federal form:

(i) to an individual who performs services for the person in Utah; and

(ii) to report income paid to the individual who performs the services.

(b) "Private employer" does not mean a public employer as defined in Section 63G-12-102.

(4)

(a) "Status verification system" means an electronic system operated by the federal government, through which an employer may inquire to verify the federal legal working status of an individual who is a newly hired employee.

(b) "Status verification system" includes:

(i) the electronic verification of the work authorization program of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. Sec. 1324a;

(ii) a federal program equivalent to the program described in Subsection (4)(b)(i) that is designated by the United States Department of Homeland Security or other federal agency authorized to verify the employment eligibility status of a newly hired employee pursuant to the Immigration Reform and Control Act of 1986;

(iii) the Social Security Number Verification Service or similar online verification process implemented by the United States Social Security Administration; or

(iv) an independent third-party system with an equal or higher degree of reliability as the programs, systems, or processes described in Subsection (4)(b)(i), (ii), or (iii).

§ 13-47-103 Scope of chapter.

A private employer shall comply with this chapter, and this chapter shall be enforced without regard to race, color, national origin, gender, religion, age, disability, familial status, or source of income.

Part 2 Verification by Private Employer

§ 13-47-201 Verification required for new hires.

(1) A private employer who employs 150 or more employees on or after May 4, 2022, may not hire a new employee on or after May 4, 2022, unless the private employer:

(a) is registered with a status verification system to verify the federal legal working status of any new employee; and

(b) uses the status verification system to verify the federal legal working status of the new employee in accordance with the requirements of the status verification system.

(2) This section does not apply to a private employer of a foreign national if the foreign national holds a visa issued in response to a petition by the private employer that is classified as H-2A or H-2B.

§ 13-47-202 Liability protections.

(1) A private employer may not be held civilly liable under state law in a cause of action for the private employer's unlawful hiring of an unauthorized alien, as defined in 8 U.S.C. Sec. 1324a, if:

(a) the private employer complies with Section 13-47-201; and

(b) the information obtained in accordance with the status verification system indicated that the employee's federal legal status allowed the private employer to hire the employee.

(2) A private employer may not be held civilly liable under state law in a cause of action for the private employer's refusal to hire an individual if:

(a) the private employer complies with Section 13-47-201; and

(b) the information obtained in accordance with the status system verification indicated that the individual's federal legal status was that of an unauthorized alien as defined in 8 U.S.C. Sec. 1324a.

§ 13-47-203 Voluntary registration by private employer certifying participation in verification.

(1)

(a) A private employer may register with the department certifying that the private employer is in compliance with Section 13-47-201.

(b) A private employer may register with the department under this section regardless of whether the private employer is required to comply with Section 13-47-201.

(2) To register or renew a registration with the department under this part, a private employer shall:

(a) file a registration statement with the department that certifies compliance with Section 13-47-201; and

(b) pay a fee established by the department in accordance Section 63J-1-504 that reflects the cost of registering employers under this section and publishing the list described in Section 13-47-204.

(3) A registration under this part expires every two years on the anniversary of the day on which the registration is filed with the department.

(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department may make rules to provide for:

(a) the form of a registration statement under this section;

(b) the process of filing a registration statement under this section; and

§ 13-47-204 Department to publish list of registered private employers.

On and after July 1, 2010, the department shall publish electronically a list of private employers who register under Section 13-47-203 on a website accessible to the general public without a charge.

Chapter 48 Motor Vehicle Rental Company Disclosure Act

§ 13-48-101 Title.

This chapter is known as the "Motor Vehicle Rental Company Disclosure Act."

§ 13-48-102 Definitions.

As used in this chapter:

(1) "Motor vehicle license cost recovery fee" means a fee or charge that may be separately stated and charged on the short-term motor vehicle lease or rental contract in a motor vehicle lease or rental transaction originating in this state to recover the costs incurred by a motor vehicle rental company to license, title, register, obtain license plates for, and inspect rental motor vehicles.

(2) "Motor vehicle rental company" means any person or organization in the business of renting motor vehicles to the public.

§ 13-48-103 Motor vehicle rental company -- Fee disclosure and collection requirements.

(1) A motor vehicle rental company may include separately stated surcharges, fees, or charges in a rental agreement, including:

(a) motor vehicle license cost recovery fees;

(b) airport access fees;

(d) all applicable taxes.

(2) If a motor vehicle rental company includes a motor vehicle license cost recovery fee as a separately stated charge in a rental transaction, the amount of the fee shall represent the motor vehicle rental company's good-faith estimate of the motor vehicle rental company's daily charge as calculated by the motor vehicle rental company to recover its actual total annual motor vehicle titling, registration, obtaining a license plate, and motor vehicle inspection and emission costs.

(3) If the total amount of the motor vehicle license cost recovery fees collected by a motor vehicle rental company under this section in any calendar year exceeds the motor vehicle rental company's actual costs to license, title, register, and obtain a license plate for the motor vehicles and have the motor vehicles pass inspections and emissions for that calendar year, the motor vehicle rental company shall retain the excess amount and adjust the estimated average per motor vehicle license cost recovery fee for the following calendar year by the corresponding amount.

Chapter 48a Car-Sharing Programs

Part 1 General Provisions

§ 13-48a-101 Definitions.

As used in this chapter:

(1)

(a) "Car sharing" means the authorized use of a motor vehicle:

(i) by an individual other than the owner of the motor vehicle; and

(ii) through a peer-to-peer car-sharing program.

(b) "Car sharing" does not mean the business of providing private passenger motor vehicles to the public as used in Section 31A-22-311.

(2)

(a) "Car-sharing agreement" means an agreement:

(i) applicable to a shared vehicle owner and a shared vehicle driver; and

(ii) that governs a shared vehicle driver's use of a shared vehicle through a car-sharing program.

(b) "Car-sharing agreement" does not mean:

(i) a rental agreement, as defined in Section 31A-22-311; or

(ii) a short-term rental as that term is defined in Section 59-12-102.

(3) "Car-sharing delivery period" means the period of time during which a shared vehicle is being delivered to the location of the car-sharing start time, if applicable, as documented by the governing car-sharing agreement.

(4) "Car-sharing period" means the period of time that:

(a)

(i) begins at the car-sharing delivery period; or

(ii) if there is no car-sharing delivery period, begins at the car-sharing start time; and

(b) ends at the car-sharing termination time.

(5)

(a) "Car-sharing program" or "peer-to-peer car-sharing program" means a business platform that connects motor vehicle owners with drivers to enable the sharing of motor vehicles for consideration.

(b) "Car-sharing program" does not mean:

(i) a motor vehicle rental company, as defined in Section 13-48-102; or

(ii) a rental company, as defined in Section 31A-22-311.

(6) "Car-sharing start time" means the time when a shared vehicle becomes subject to the control of the shared vehicle driver at or after the time the reservation of the shared vehicle is scheduled to begin, as documented in the records of the car-sharing program.

(7) "Car-sharing termination time" means the earliest of the following events:

(a) the expiration of the agreed upon period of time established for the use of a shared vehicle according to the terms of the car-sharing agreement, if the shared vehicle is delivered to the location agreed upon in the car-sharing agreement;

(b) when the shared vehicle is returned to a location as alternatively agreed upon by the shared vehicle owner and shared vehicle driver as communicated through a car-sharing program, which alternatively agreed upon location shall be incorporated into the car-sharing agreement; and

(c) when the shared vehicle owner or shared vehicle owner's authorized designee takes possession and control of the shared vehicle.

(8) "Individual-owned shared vehicle" means:

(a) for a motor vehicle purchased in the state, a shared vehicle for which applicable sales tax and use tax was paid on the purchase; or

(b) for a motor vehicle not purchased in the state, a shared vehicle for which:

(i) an applicable use tax was paid to this state on the purchase; or

(ii) sales tax or use tax was paid on the purchase in the jurisdiction in which the motor vehicle was purchased.

(9) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.

(10) "Shared vehicle" means a motor vehicle that is available for use by an individual other than the shared vehicle owner through a car-sharing program.

(11)

(a) "Shared vehicle driver" means an individual who has been authorized to drive a shared vehicle by the shared vehicle owner under a car-sharing program.

(b) "Shared vehicle driver" does not mean a renter, as defined in Section 31A-22-311.

(12)

(a) "Shared vehicle owner" means:

(i) the registered owner of a motor vehicle made available for car sharing; or

(ii) a person designated by the registered owner of a motor vehicle made available for car sharing.

(b) "Shared vehicle owner" does not mean a rental company, as defined in Section 31A-22-311.

§ 13-48a-102 Limits on reach of chapter.

Nothing in this chapter:

(1) limits the liability of a car-sharing program for an act or omission of the car-sharing program that results in injury to a person as a result of the use of a shared vehicle through a car-sharing program; or

(2) limits the ability of the car-sharing program, by contract, to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the car-sharing program resulting from a breach of the terms and conditions of the car-sharing agreement.

Part 2 Consumer Protection Provisions

§ 13-48a-201 Notification about possible violation of lienholder agreement.

(1) As used in this section, "lienholder agreement" means an agreement between the owner of a motor vehicle and another person under which the other person has a lien against the motor vehicle.

(2) At the time that the owner of a motor vehicle registers to make the owner's motor vehicle available for sharing through a car-sharing program, the car-sharing program shall notify the owner that the use of the owner's motor vehicle through the car-sharing program, including without physical damage coverage, may violate the terms of a lienholder agreement that the motor vehicle may be subject to.

§ 13-48a-202 Safety recalls.

(1) At the time that the owner of a motor vehicle registers to make the owner's motor vehicle available for sharing through a car-sharing program, the car-sharing program shall:

(a) verify that the shared vehicle does not have any safety recalls for which the repairs have not been made; and

(b) notify the motor vehicle owner of the requirements under Subsections (2), (3), and (4).

(2) An owner of a motor vehicle may not register to make the owner's motor vehicle available for sharing through a car-sharing program if:

(a) the owner has received an actual notice of a safety recall applicable to the motor vehicle; and

(b) the safety recall repair has not been made.

(3) A shared vehicle owner who receives an actual notice of a safety recall applicable to the shared vehicle during the time that the shared vehicle is made available for sharing through a car-sharing program shall, as soon as practicably possible after receiving the notice, remove the shared vehicle from availability for sharing through the car-sharing program until the safety recall repair is made.

(4) A shared vehicle owner who receives an actual notice of a safety recall applicable to the shared vehicle during the time that the shared vehicle is in the possession of a shared vehicle driver under a car-sharing agreement shall, as soon as practicably possible after receiving the notice, notify the car-sharing program about the safety recall so that the shared vehicle owner may address the safety recall repair.

§ 13-48a-203 Required disclosures for a car-sharing agreement.

A car-sharing agreement shall disclose to the shared vehicle owner and the shared vehicle driver:

(1) a right of the car-sharing company to seek indemnification from the shared vehicle owner or shared vehicle driver for economic loss resulting from a breach of the car-sharing agreement;

(2) that a motor vehicle liability insurance policy issued to the shared vehicle owner or shared vehicle driver does not provide a defense or indemnification for any claim asserted by the car-sharing company;

(3) that the car-sharing program's insurance policy covering the shared vehicle owner and the shared vehicle driver is in effect only during the car-sharing period and that, for any use of the shared vehicle by the shared vehicle driver after the car-sharing termination time, the shared vehicle driver and the shared vehicle owner may not have insurance coverage;

(4) of the daily rate, fees, and, if applicable, insurance or protection package costs that are charged to the shared vehicle owner or shared vehicle driver;

(5) that the shared vehicle owner's motor vehicle liability insurance policy may not provide coverage for the shared vehicle;

(6) of an emergency telephone number to contact personnel capable of fielding roadside assistance or other customer service inquiries; and

(7) whether there are conditions under which a shared vehicle driver must maintain a personal automobile insurance policy with certain applicable coverage limits on a primary basis in order to book a shared vehicle.

§ 13-48a-204 Records relating to the use of shared vehicles.

(1) A car-sharing program shall collect and verify records pertaining to the use of a shared vehicle, including times used, car-sharing period pick up and drop off locations, fees paid by the shared vehicle driver, and revenues received by the shared vehicle owner, and provide that information upon request to the shared vehicle owner, the shared vehicle owner's insurer, or the shared vehicle driver's insurer to facilitate a claim coverage investigation, settlement, negotiation, or litigation.

(2) The car-sharing program shall retain the records for a time period not less than two years.

§ 13-48a-205 GPS or other special equipment.

(1) A car-sharing program:

(a) has sole responsibility for any GPS or other special equipment that the car-sharing company places on or in a shared vehicle to monitor the shared vehicle or facilitate the car-sharing agreement; and

(b) shall agree to indemnify and hold harmless the shared vehicle owner for any damage to the shared vehicle that:

(i) is a result of damage to or theft of equipment described in Subsection (1)(a);

(ii) occurs during the car-sharing period; and

(iii) is not caused by the shared vehicle owner.

(2) A car-sharing program may seek indemnity from a shared vehicle driver for any loss of or damage to equipment described in Subsection (1)(a) that occurs during the car-sharing period.

Part 3 Liability and Insurance for Covered Loss from Operation of Shared Vehicle

§ 13-48a-301 Car-sharing company assumption of liability for a covered loss -- Exception.

(1) Except as provided in Subsection (2), a car-sharing program shall assume liability of a shared vehicle owner for bodily injury or property damage to third parties or personal injury protection losses during the car-sharing period in an amount stated in the car-sharing agreement, which amount may not be less than those set forth in Section 31A-22-304.

(2) Notwithstanding the definition of car-sharing termination time, the assumption of liability under Subsection (1) does not apply to a shared vehicle owner when:

(a) a shared vehicle owner makes an intentional or fraudulent material misrepresentation or omission to the car-sharing program before the car-sharing period in which the loss occurred; or

(b) acting in concert with a shared vehicle driver who fails to return the shared vehicle pursuant to the terms of the car-sharing agreement.

(3) Notwithstanding the definition of car-sharing termination time, the assumption of liability under Subsection (1) would apply to bodily injury, property damage, or personal injury protection losses by damaged third parties required by Section 31A-22-304.

§ 13-48a-302 Motor vehicle liability insurance.

(1) A car-sharing program shall ensure that, during each car-sharing period, the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy that provides coverage in amounts no less than the minimum amounts set forth in Section 31A-22-304, and:

(a) recognizes that the shared vehicle insured under the policy is made available and used through a car-sharing program; or

(b) does not exclude use of a shared vehicle by a shared vehicle driver.

(2) The insurance described in Subsection (1) may be satisfied by motor vehicle liability insurance maintained by:

(a) a shared vehicle owner;

(b) a shared vehicle driver;

(d) a shared vehicle owner, a shared vehicle driver, and a car-sharing program.

(3) The insurance described in Subsection (1) that is satisfying the insurance requirement of Subsection (1) shall be primary during each car-sharing period and in the event that a claim occurs in another state with minimum financial responsibility limits higher than those in Section 31A-22-304, during the car-sharing period, the coverage maintained under Subsection (2) shall satisfy the difference in minimum coverage amounts, up to the applicable policy limits.

(4) The insurer, insurers, or car-sharing program providing coverage under Subsection (1) or (2) shall assume primary liability for a claim when:

(a) a dispute exists as to who was in control of the shared motor vehicle at the time of the loss and the car-sharing program does not have available, did not retain, or fails to provide the information required by Section 13-48a-203; or

(b) a dispute exists as to whether the shared vehicle was returned to the alternatively agreed upon location as required under Section 13-48a-101.

(5) If insurance maintained by a shared vehicle owner or shared vehicle driver in accordance with Subsection (2) has lapsed or does not provide the required coverage, insurance maintained by the car-sharing program shall provide the coverage required by Subsection (1) beginning with the first dollar of a claim and have the duty to defend the claim except under circumstances set forth in Subsection 13-48a-301(2).

(6) Coverage under an automobile insurance policy maintained by the car-sharing program is not dependent on another automobile insurer first denying a claim, nor shall another automobile insurance policy be required to first deny a claim.

§ 13-48a-303 Certain abilities of insurance companies preserved.

(1)

(a) A motor vehicle liability insurance policy may exclude coverage and a duty to defend or indemnify with respect to a claim arising during a motor vehicle's use as a shared vehicle, based on the motor vehicle's use as a shared vehicle.

(b) Coverage that may be excluded as provided in Subsection (1) includes coverage for:

(i) bodily injury or property damage suffered by a third party;

(ii) a claim covered by uninsured motorist coverage described in Section 31A-22-305;

(iii) a claim covered by underinsured motorist coverage described in Section 31A-22-305.5;

(iv) a claim covered by personal injury protection coverage and benefits described in Section 31A-22-307;

(v) a claim for medical payments;

(vi) a claim for comprehensive physical damage; and

(vii) a claim for collision physical damage.

(2) Nothing in this chapter invalidates, limits, or restricts the ability of an insurance company under other applicable law to:

(a) underwrite an insurance policy; or

(b) cancel or fail to renew an insurance policy.

(3) Nothing in this chapter invalidates or limits a provision in a motor vehicle liability insurance policy, including any insurance policy in use or approved for use, that excludes coverage for a motor vehicle made available for rent, sharing, hire, or any business use.

§ 13-48a-304 Insurable interest -- Insurance to cover various liabilities -- No liability to maintain certain insurance.

(1) Notwithstanding any other provision of law, a car-sharing program has an insurable interest in a shared vehicle during the car-sharing period.

(2) A car-sharing program may own and maintain as the named insured one or more policies of motor vehicle insurance that provide coverage for:

(a) a liability assumed by the car-sharing program under a car-sharing agreement;

(b) a liability of the shared vehicle owner;

(d) damage or loss to a shared vehicle.

(3) Nothing in this section requires a car-sharing program to maintain insurance coverage for the car-sharing program's liability under this chapter.

§ 13-48a-305 Recovery for claim excluded from insurance policy.

An insurance company that defends or indemnifies a claim against a shared vehicle that is excluded under the terms of the insurance company's policy shall have the right to seek recovery against the motor vehicle insurer of the car-sharing program if the claim is:

(1) made against the shared vehicle owner or shared vehicle driver for a loss or injury that occurs during the car-sharing period; and

(2) excluded under the terms of the policy of the insurance company that defends or indemnifies the claim.

§ 13-48a-306 Exemption from liability based on operation of a car-sharing program or on vehicle ownership.

Consistent with 49 U.S.C. Sec. 30106, a car-sharing program and a shared vehicle owner are exempt from vicarious liability under any state or local law that imposes liability solely based on vehicle ownership.

§ 13-48a-307 Driver license requirement and records.

(1) A car-sharing program may not enter into a car-sharing agreement with a driver unless the driver who will operate the shared vehicle:

(a) holds a driver license issued under the applicable law of this state that authorizes the driver to operate vehicles of the class of the shared vehicle;

(b) is a nonresident who:

(i) has a driver license issued by the state or country of the driver's residence that authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle; and

(ii) is at least the same age as that required of a resident to drive; or

(2) A car-sharing program shall keep a record of:

(a) the name and address of the shared vehicle driver;

(b) the number of the driver license of the shared vehicle driver and each other person, if any, who will operate the shared vehicle; and

Chapter 49 Immigration Consultants Registration Act

Part 1 General Provisions

§ 13-49-102 Definitions.

As used in this chapter:

(1) "Client" means a person who receives services from or enters into an agreement to receive services from an immigration consultant.

(2) "Compensation" means anything of economic value that a person pays, loans, grants, gives, donates, or transfers to another person, directly or indirectly, for or in consideration of:

(a) services;

(b) personal or real property; or

(3) "Division" means the Division of Consumer Protection established in Section 13-2-102.

(4) "Immigration consultant" means an individual who provides nonlegal assistance or advice on an immigration matter including:

(a) completing a document a federal or state agency provides, but not advising a person as to the person's answers on the document;

(b) translating a person's answer to a question posed in a document a federal or state agency provides;

(c) securing for a person supporting documents, such as a birth certificate, that may be necessary to complete a document a federal or state agency provides;

(d) submitting a completed document on a person's behalf and at the person's request to the United States Citizenship and Immigration Services; or

(e) for compensation, referring a person to another person who could undertake legal representation activities in an immigration matter.

(5) "Immigration matter" means a proceeding, filing, or action affecting the immigration or citizenship status of a person that arises under:

(a) immigration and naturalization law;

(b) executive order or presidential proclamation; or

(c) action of the United States Citizenship and Immigration Services, the United States Department of State, or the United States Department of Labor.

Part 2 Registration Requirements

§ 13-49-201 Requirement to be registered as an immigration consultant -- Exemptions.

(1) Except as provided in Subsection (2), an individual may not engage in an activity described in Subsection 13-49-102(4) for compensation unless the individual is registered under this chapter.

(2) Except for Subsections 13-49-303(3), (4), and (5), this chapter does not apply to an individual authorized:

(a) to practice law in this state; or

(b) by federal law to represent an individual before the Board of Immigration Appeals or the United States Citizenship and Immigration Services.

(3) An immigration consultant may only offer nonlegal assistance or advice in an immigration matter.

§ 13-49-202 Application for registration -- Renewal.

(1) To register as an immigration consultant an individual shall submit to the division a registration application:

(a) in the manner the division determines; and

(b) that includes:

(i) a registration application fee in an amount the division determines in accordance with Section 63J-1-504;

(ii) the costs of the criminal background check required by Subsection (2)(c); and

(iii) any information that the division requires by rule the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(2) An applicant for registration as an immigration consultant shall:

(a) not have been convicted of:

(i) a felony; or

(ii) a misdemeanor involving theft, fraud, or dishonesty within the 10 years immediately preceding the day on which the applicant submits the applicant's application or renewal application;

(b) submit fingerprint cards in a form acceptable to the division at the time the applicant files the application;

(i) the Utah Bureau of Criminal Identification; or

(ii) another state agency or federal agency that performs criminal background checks; and

(d) not have violated Chapter 11, Utah Consumer Sales Practices Act.

(3) The division shall register an individual who qualifies under this chapter as an immigration consultant.

(4) An immigration consultant shall update registration information no later than 30 days after the day on which information the immigration consultant provides on the immigration consultant's application becomes incorrect or incomplete.

(5) Registration of an immigration consultant under this chapter is effective for one year after the day on which the division registers an individual as an immigration consultant.

(6) To renew an immigration consultant registration under this section, an immigration consultant shall submit a registration renewal application to the division at least 30 days before the day on which the immigration consultation's registration expires.

(7) Registration with the division does not constitute an approval or endorsement of an immigration consultant by the division or the state.

§ 13-49-204 Bonds -- Exemption -- Statements dependent on posting bond.

(1) An immigration consultant shall maintain the following in a form the division approves, and in the amount of $50,000:

(a) a surety bond issued by a surety authorized to transact security business in this state; or

(b) a certificate of deposit in a financial institution authorized under the laws of this state or the United States to accept deposits from the public.

(2) A surety bond or certificate of deposit described in Subsection (1) shall be payable to the division for the benefit of any person damaged by a fraud, misstatement, misrepresentation, unlawful act, omission, or failure to provide services of an immigration consultant, or an agent, representative, or employee of an immigration consultant.

(3)

(a) If a surety bond or certificate of deposit an immigration consultant posts under this section is canceled due to the immigration consultant's negligence, the division may assess a $300 reinstatement fee.

(b) A person may not withdraw a part of a surety bond or certificate of deposit an immigration consultant posts in accordance with this section:

(i) during the one-year period the registration under this chapter is in effect; or

(ii) while a revocation proceeding is pending against the immigration consultant.

(4)

(a) A surety bond or certificate of deposit an immigration consultant posts in accordance with this section may be forfeited if the immigration consultant's registration under this chapter is revoked.

(b) Notwithstanding Subsection (4)(a), the division may make a claim against a surety bond or certificate of deposit posted by an immigration consultant for money owed the division under this chapter without the division first revoking the immigration consultant's registration.

(5) An individual may not disseminate by any means a statement indicating that the individual is an immigration consultant, engages in the business of an immigration consultant, or proposes to engage in the business of an immigration consultant, unless the individual posts a surety bond or certificate of deposit under this section that the individual maintains throughout the period covered by the statement.

(6) An immigration consultant may not make or authorize the making of an oral or written reference to the immigration consultant's compliance with the bonding requirements of this section except as provided in this chapter.

(7) The division may claim an immigration consultant's surety bond or certificate of deposit for the benefit of any client who incurs damages as the result of the immigration consultant's failure to comply with this chapter.

(8) After the client recovers full damages, the division may recover from the surety bond or certificate of deposit any administrative fines, civil penalties, investigative costs, attorney fees, and other costs of collecting and distributing funds in accordance with this section.

Part 3 Operational Requirements

§ 13-49-301 Requirements for written contract -- Prohibited statements.

(1)

(a) Before an immigration consultant may provide services to a client, the immigration consultant shall provide the client with a written contract.

(b) The contents of a written contract described in this Subsection (1) shall comply with this section and rules the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(c) A client may cancel a written contract on or before midnight of the third business day after the day on which the immigration consultant and client execute the written contract, excluding weekends and state and federal holidays.

(2) A written contract under this section shall be stated in both English and in the client's native language.

(3) A written contract under this section shall:

(a) state the purpose for which the client has hired the immigration consultant;

(b) state the one or more services the immigration consultant will perform;

(d) include a statement printed in 12-point boldface font that the immigration consultant is not an attorney and may not perform the legal services that an attorney performs;

(e) with regard to a document the immigration consultant prepares:

(i) list the document the immigration consultant will prepare;

(ii) explain the purpose of the document;

(iii) explain the process the immigration consultant will follow in preparing of the document;

(iv) explain the action the immigration consultant will take;

(v) state the agency or office where the immigration consultant will file each document; and

(vi) state the approximate processing times according to current published agency guidelines;

(f) include a provision stating that the person may report complaints relating to an immigration consultant to the:

(i) division, including a telephone number and website; and

(ii) Office of Immigrant Assistance of the United States Department of Justice, including a telephone number and website;

(g) include a provision stating that a person may report complaints concerning the unauthorized practice of law to the Utah State Bar, including a telephone number and website; and

(h) in accordance with Subsection (1)(c), include a provision stating in 12-point boldface font on the first page of the written contract in both English and in the client's native language in accordance with Subsection (2): "You may cancel this contract on or before midnight of the third business day after execution of the written contract."

(4) A written contract may not contain a provision relating to the following:

(a) a guarantee or promise, unless the immigration consultant has some basis in fact for making the guarantee or promise; or

(b) a statement that the immigration consultant can or will obtain a special favor from or has special influence with the United States Citizenship and Immigration Services, or any other governmental agency, employee, or official, that may have a bearing on a client's immigration matter.

(5) An immigration consultant may not make a statement described in Subsection (4) orally to a client.

(6) A written contract is void if not written in accordance with this section.

§ 13-49-302 Accounting for services -- Receipts.

(1)

(a) An immigration consultant shall provide a signed receipt to a client for each payment that the client, or a person acting on the client's behalf, makes.

(b) The receipt described in Subsection (1)(a) shall be typed or computer generated on the immigration consultant's letterhead.

(2) An immigration consultant shall make a statement of accounting for the services rendered and payments made:

(a) in the client's native language;

(b) to the client every two months;

(d) that lists the individual charges and total charges for services; and

(e) that lists the payments the client makes.

§ 13-49-303 Notice to be displayed -- Disclosure to be provided in writing.

(1) Before providing a service, an immigration consultant shall provide a client with a written disclosure in the native language of the client that includes the following:

(a) the immigration consultant's name, address, and telephone number;

(b) the immigration consultant's agent for service of process;

(c) evidence of the immigration consultant's compliance with any applicable surety bond or certificate of deposit requirement, including the bond number or certificate of deposit number;

(d) a list of the services that the immigration consultant provides and the current and total fee for each service; and

(e) a statement that the immigration consultant:

(i) is not an attorney; and

(ii) may not charge a client a fee for the referral of the client to another person for a service that the immigration consultant cannot or will not provide to the client.

(2) An immigration consultant shall obtain the signature of the client verifying that the client received the written disclosures described in Subsection (1) before the immigration consultant provides a service.

(3) Except as provided in Subsection (4), an immigration consultant who prints, displays, publishes, distributes, or broadcasts, or who causes to be printed, displayed, published, distributed, or broadcasted, an advertisement for services as an immigration consultant, shall include in the advertisement a clear and conspicuous statement that the immigration consultant is not an attorney.

(4)

(a) Subsection (3) does not apply to an immigration consultant who is not licensed as an attorney in a state or territory of the United States, but is authorized by federal law to represent a person before the Board of Immigration Appeals or the United States Citizenship and Immigration Services.

(b) A person described in this Subsection (4) shall include in an advertisement for services as an immigration consultant a clear and conspicuous statement that the immigration consultant is not an attorney, but is authorized by federal law to represent a person before the Board of Immigration Appeals or the United States Citizenship and Immigration Services.

(5) If an advertisement subject to this section is in a language other than English, the statement required by Subsection (3) shall be in the same language as the advertisement.

§ 13-49-305 Documents -- Treatment of original documents.

(1)

(a) An immigration consultant shall deliver to a client a copy of a document the immigration consultant completes on behalf of the client.

(b) An immigration consultant shall include on a document the immigration consultant delivers to a client the name and address of the immigration consultant.

(2) An immigration consultant shall retain a copy of a document of a client for not less than three years from the day on which the immigration consultant makes the last service to the client.

(3) An immigration consultant shall return to a client each original document that the client provides to the immigration consultant in support of the client's application including:

(a) an original birth certificate;

(b) a rental agreement;

(d) an employment document;

(e) a registration document issued by the Division of Motor Vehicles; or

(f) a passport.

(4) An immigration consultant shall return to the client an original document that is not required to be submitted to immigration authorities as an original document immediately after the immigration consultant makes a copy.

§ 13-49-306 Denial, suspension, or revocation of an application or registration.

(1) the division finds that the denial, suspension, or revocation is in the public interest; and

(2)

(a) the registration is incomplete, false, or misleading; or

(b) the applicant:

(i) violates, causes a violation, allows a violation, or fails to satisfy the requirements of a provision of:

(A) this chapter; or

(B) a rule the division makes in accordance with this chapter;

(ii) violates Chapter 11, Utah Consumer Sales Practices Act;

(iii) is enjoined by a court, or is the subject of an administrative order or judicial order issued in Utah or another state, if the order:

(A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or

(B) is based on a finding of lack of integrity, truthfulness, or mental competence;

(iv) is convicted of a crime involving theft, fraud, or dishonesty;

(v) obtains or attempts to obtain a registration by misrepresenting a material fact;

(vi) fails to provide information the division requests;

(vii) fails to pay an administrative fine that the division or an administrative or judicial order imposes; or

(viii) fails to pay the fee to file a registration application or a renewal application.

Part 4 Prohibited Acts and Penalties

§ 13-49-401 Unlawful acts.

(1) It is unlawful for an immigration consultant to:

(a) make a false or misleading statement to a client while providing a service to the client;

(b) make a guarantee or promise to a client, unless the guarantee or promise is in writing and the immigration consultant has some basis in fact for making the guarantee or promise;

(c) make a statement that the immigration consultant can or will obtain a special favor from or has special influence with the United States Citizenship and Immigration Services, or any other governmental agency, employee, or official, that may have a bearing on a client's immigration matter;

(d) charge a client a fee for the referral of the client to another person for services that the immigration consultant cannot or will not provide to the client;

(e) represent that the division or the state endorses the immigration consultant;

(f) omit from a filing with the division a material statement of fact this chapter or a rule the division makes in accordance with this chapter requires; or

(g) include in a filing with the division a material statement of fact that the immigration consultant or immigration consultant's principal knows or should know is false, deceptive, inaccurate, or misleading.

(2) An immigration consultant may not translate a document or other information in a way that falsely represents or implies that the immigration consultant is an attorney.

§ 13-49-402 Violations -- Actions by division.

(1) In addition to the division's enforcement powers described in Chapter 2, Division of Consumer Protection:

(a) the division director may impose an administrative fine of up to $2,500 for a violation of this chapter; and

(b) the division may bring an action in a court with jurisdiction to enforce a provision of this chapter.

(2) In a court action the division brings to enforce a provision of this chapter, the court may:

(a) declare that an act or practice violates a provision of this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured purchaser or consumer;

(e) impose a fine of up to $2,500 for each violation of this chapter; or

(f) award any other relief that the court deems reasonable and necessary.

(3)

(a) A person that intentionally violates this chapter:

(i) is guilty of a class A misdemeanor; and

(ii) may be fined up to $10,000.

(b) A person intentionally violates this part if the violation occurs after the division, attorney general, or a district or county attorney notifies the person by certified mail that the person is in violation of this chapter.

§ 13-49-403 Action by attorney general or district or county attorney.

Upon referral from the division, the attorney general or a district or county attorney may:

(1) bring an action for temporary or permanent injunctive or other relief in a court with jurisdiction for a violation of this part;

(2) bring an action in a court with jurisdiction for the collection of penalties authorized under Subsection 13-49-402(2); or

(3) bring an action under Subsection 13-49-402(3).

§ 13-49-404 Recovery of losses.

In addition to any other remedies, a person that suffers pecuniary loss because of a violation by another person of this chapter may bring an action in a court with jurisdiction and may recover:

(1) the greater of $500 or twice the amount of the pecuniary loss; and

(2) court costs and reasonable attorney fees as the court determines.

Chapter 50 Residential Construction Contracts Act

Part 1 General Provisions

§ 13-50-101 Title.

(1) This chapter is known as the "Residential Construction Contracts Act."

(2) This part is known as "General Provisions."

§ 13-50-102 Definitions.

As used in this chapter:

(1) "Rebate" means:

(a) any allowance or discount against charged fees; or

(b) payment of any form of compensation, except for an item of nominal value, to:

(i) an insured; or

(ii) a person directly or indirectly associated with a residential building.

(2) "Repair work" means any work done to siding, gutters, a roof system, or a window system to repair damage caused by wind or hail.

(3) "Residential building" means a single or multiple family dwelling of up to four units.

(4) "Residential contractor" means a person that, for compensation, other than wages as an employee, contracts or offers to contract to:

(a) perform repair work on a residential building;

(b) arrange for, manage, or process repair work on a residential building; or

(c) serve as a representative, agent, or assignee of the owner or possessor of a residential building for purposes of repair work on the residential building.

(5) "Roof system" includes roof coverings, roof sheathing, roof weatherproofing, roof framing, roof ventilation, and roof insulation.

Part 2 Right to Cancel Certain Residential Construction Contracts

§ 13-50-201 Title.

This part is known as "Right to Cancel Certain Residential Construction Contracts."

§ 13-50-202 Right to cancel.

(1) A person that enters into a written contract with a residential contractor for the performance of repair work on a residential building may cancel the contract if:

(a) at the time of the execution of the contract, the residential contractor knew or should have known that the person intended that all or part of the contract would be paid with proceeds of a property and casualty insurance policy;

(b) the property and casualty insurer denies any part of the person's claim relating to the repair work governed by the contract; and

(c) within five business days after the day on which the person receives written notice from the person's property and casualty insurer that all or part of the person's claim relating to the repair work governed by the contract is denied, the person deposits in the United States mail, or otherwise provides, written notice of cancellation to the physical address provided in the contract.

(2) Except as provided in Subsection (3), within 10 business days after the day on which a person cancels a contract under Subsection (1), the residential contractor shall return to the person all payments, partial payments, deposits, and evidence of indebtedness made by the person in relation to the contract.

(3) A residential contractor may retain or collect the reasonable value of any repair work described in the contract that was actually performed, if the owner of the residential building expressly instructed the residential contractor to perform the repair work without waiting for the property and casualty insurer to provide notice of whether it accepts or denies coverage of the contract.

§ 13-50-203 Required provisions.

A written contract between a person and a residential contractor for the performance of repair work on a residential building shall:

(1) include a notice of the person's right to cancel the contract, as described in Section 13-50-202, that is in substantially the following form:

"Utah Code Section 13-50-202 provides that if, when you signed this contract, the residential contractor knew or should have known that you intended that all or part of the contract would be paid with proceeds of a property and casualty insurance policy, you may cancel this contract within five business days after the day on which you receive written notification from your property and casualty insurer that your claim, or a portion of your claim, has been denied";

(2) state the mailing address where the residential contractor receives written notice; and

(3) include a detachable copy of a notice of cancellation that is in substantially the following form:

"NOTICE OF CANCELLATION

If your property and casualty insurer denies your claim, or a portion of your claim, to pay for the repair work to be provided under this contract, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written cancellation notice to ______ (name of residential contractor) at ______ (address where residential contractor receives notices) any time within five business days after the day on which you receive written notice from your property and casualty insurer that your claim, or a portion of your claim, for coverage of the repair services described in this contract has been denied. If you cancel, any payments made by you under the contract will be returned within 10 business days after the day on which the residential contractor receives your written cancellation notice, except that the residential contractor may retain or collect the reasonable value of any repair work actually performed, if you expressly instructed the residential contractor to perform the repair work without waiting for notice of coverage from your property and casualty insurer.

I HEREBY CANCEL THIS TRANSACTION.

Dated_____________

Signature_____________________"

Part 3 Insured Homeowners Protection Act

§ 13-50-301 Post-loss assignment of rights or benefits to a residential contractor.

(1) A post-loss assignment of rights or benefits to a residential contractor under a property and casualty insurance policy insuring a residential building:

(a) may authorize a residential contractor to be named as a copayee for the payment of benefits under a property and casualty insurance policy covering the residential building;

(b) shall include:

(i) an itemized description of the work to be done on the insured residential building; and

(ii) the total amount the insured agreed to pay for the work described in Subsection (1)(b)(i);

(c) shall include a statement that the residential contractor has made no assurances that an insurance contract will fully cover the claimed loss;

(d) shall include a notice in substantially the following form and in capitalized 14-point type:

"YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING.

THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE SHOWN IN THIS ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE INSURER. THE INSURER HAS THE RIGHT TO PAY ONLY FOR THE COST TO REPAIR OR REPLACE DAMAGED PROPERTY CAUSED BY A COVERED PERIL.";

(e) may not impair the interest of a mortgagee listed on the declarations page of the property and casualty insurance policy that is the subject of the assignment; and

(f) may not prevent or inhibit an insurer from communicating with a named insured listed on the declarations page of the property and casualty insurance policy that is the subject of the assignment.

(2) A party receiving the assignment described in Subsection (1) shall:

(a) deliver the assignment to the insurer of the residential building within five business days after the earlier of the day on which:

(i) the assignment is executed; or

(ii) repair work begins on the residential building; and

(b) cooperate with the insurer of the residential building in an investigation into the claimed loss by:

(i) providing each document and record the insurer requests; and

(ii) complying with each post-loss duty included in the insurance policy.

§ 13-50-302 Residential contractor, prohibited acts.

A residential contractor may not rebate or offer to rebate any portion of an insurance deductible as an inducement to the sale of a good or service.

§ 13-50-303 Violation notice.

(1) Any written contract, repair estimate, or work order that a residential contractor prepares to provide a good or service paid for from the proceeds of a property and casualty insurance policy shall include a notice of the prohibition described in Section 13-50-302 in substantially the following form and in capitalized 14-point type:

"IT IS A VIOLATION OF UTAH LAW FOR A RESIDENTIAL CONTRACTOR TO REBATE ANY PORTION OF AN INSURANCE DEDUCTIBLE AS AN INDUCEMENT TO THE INSURED TO ACCEPT A RESIDENTIAL CONTRACTOR'S PROPOSAL TO REPAIR DAMAGED PROPERTY. REBATE OF A DEDUCTIBLE INCLUDES GRANTING ANY ALLOWANCE OR OFFERING ANY DISCOUNT AGAINST THE FEES TO BE CHARGED FOR WORK TO BE PERFORMED OR PAYING THE INSURED POLICYHOLDER THE DEDUCTIBLE AMOUNT SET FORTH IN THE INSURANCE POLICY.

THE INSURED POLICY HOLDER IS PERSONALLY RESPONSIBLE FOR PAYMENT OF THE DEDUCTIBLE.".

(2) Under any agreement in which a residential contractor provides a good or service paid for from the proceeds of a property and casualty insurance policy, no payment may be made to the residential contractor until:

(a) the named insured signs the notice described in Subsection (1); and

(b) the residential contractor delivers the notice signed in accordance with Subsection (2)(a) to the named insured's insurance company.

§ 13-50-304 Violation of part.

A post-loss assignment of rights or benefits entered into with a residential contractor is void if the residential contractor violates a provision of this part.

Chapter 51 Transportation Network Company Registration Act

Part 1 Registration

§ 13-51-102 Definitions.

(1) "Division" means the Division of Consumer Protection established in Section 13-2-102.

(2) "Prearranged ride" means a period of time that:

(a) begins when the transportation network driver accepts a passenger's request for a ride through the transportation network company's software application; and

(b) ends when the passenger exits the transportation network driver's vehicle.

(3) "Software application" means an internet-connected software platform, including a mobile application, that a transportation network company uses to:

(a) connect a transportation network driver to a passenger; and

(b) process passenger requests.

(4) "Transportation network company" means an entity that:

(a) uses a software application to connect a passenger to a transportation network driver providing transportation network services;

(b) is not:

(i) a taxicab, as that term is defined in Section 53-3-102; or

(ii) a motor carrier, as that term is defined in Section 72-9-102; and

(c) except in certain cases involving a motor vehicle with a level four or five automated driving system, as defined in Section 41-26-102.1, does not own, control, operate, or manage the vehicle used to provide the transportation network services.

(5) "Transportation network driver" means:

(a) an individual who:

(i) pays a fee to a transportation network company, and, in exchange, receives a connection to a potential passenger from the transportation network company;

(ii) operates a motor vehicle that:

(A) the individual owns, leases, or is authorized to use; and

(B) the individual uses to provide transportation network services; and

(iii) receives, in exchange for providing a passenger a ride, compensation that exceeds the individual's cost to provide the ride; or

(b) a level four or five automated driving system, as that term is defined in Section 41-26-102.1, when the automated driving system operates the vehicle and is used to provide a passenger a ride in exchange for compensation.

(6) "Transportation network services" means, for a transportation network driver providing services through a transportation network company:

(a) providing a prearranged ride; or

(b) being engaged in a waiting period.

(7) "Waiting period" means a period of time when:

(a) a transportation network driver is logged into a transportation network company's software application; and

(b) the transportation network driver is not engaged in a prearranged ride.

§ 13-51-103 Exemptions -- Transportation network company and transportation network driver.

(1) A transportation network company or a transportation network driver is not subject to the requirements applicable to:

(a) a motor carrier, under Title 72, Chapter 9, Motor Carrier Safety Act;

(b) a common carrier, under Title 59, Chapter 12, Sales and Use Tax Act; or

(2) A transportation network driver is:

(a)

(i) an independent contractor of a transportation network company; and

(ii) not an employee of a transportation network company; or

(b) for a motor vehicle with a level four or five automated driving system as defined in Section 41-26-102.1, in driverless operation, an automated driving system if dispatched:

(i) at the direction of, on behalf of, or as an agent of a transportation network company; or

(ii) at the direction of, on behalf of, or as an agent of a third party pursuant to an agreement between the third party and a transportation network company, operated on behalf of and as an agent of the transportation network company.

§ 13-51-104 Registration -- Division audits -- Fines.

(1) A person may not operate a transportation network company without registering with the division in accordance with Subsection (2).

(2) To register as a transportation network company, a person shall submit to the division a registration application:

(a) in a form the division approves; and

(b) that includes:

(i) a registration application fee in an amount the division determines in accordance with Section 63J-1-504;

(ii) a designated registered agent for service of process in the state and the registered agent's:

(A) name;

(B) street address;

(D) telephone number; and

(iii) a copy of the transportation network company's:

(A) policy of insurance, including each amendment and endorsement to the policy in accordance with Section 13-51-108;

(B) drug and alcohol use policy required under Section 13-51-106;

(D) any information that the division requires by rule that the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(3) The division shall register a person to operate a transportation network company if:

(a) the person:

(i) demonstrates to the division that the person meets the definition of a transportation network company under Section 13-51-102; and

(ii) pays a registration fee in an amount determined by the division in accordance with Section 63J-1-504; and

(b) the division determines that the person complies with the operating requirements for a transportation network company described in this chapter.

(4) To renew a transportation network company registration under this section, a transportation network company shall submit a registration renewal application to the division at least 30 days before the day on which the transportation network company's registration expires in accordance with Subsection (8).

(5) A transportation network company shall update registration information within 30 days after the day on which information the transportation network company provides on the application becomes incorrect or incomplete.

(6) Registration with the division does not constitute an approval or endorsement of the provider by the division or the state.

(7) A transportation network company may not:

(a) represent that the division or the state endorses or approves the transportation network company;

(b) omit from a filing with the division a material statement of fact that this chapter or a rule the division makes in accordance with this chapter requires; or

(c) include in a filing with the division a material statement that the transportation network company or transportation network company's principal knows or should know is false, deceptive, inaccurate, or misleading.

(8) Registration of a transportation network company under this chapter is effective for one year after the day on which the division issues the registration in accordance with Subsection (3).

§ 13-51-104.1 Denial, suspension, or revocation of an application or registration.

(1) the division finds that the denial, suspension, or revocation is in the public interest; and

(2)

(a) the registration is incomplete, false, or misleading; or

(b) the applicant or the applicant's principal:

(i) violates, causes a violation, allows a violation, or fails to satisfy the requirements of a provision of:

(A) this chapter; or

(B) a rule the division makes in accordance with this chapter;

(ii) violates Chapter 11, Utah Consumer Sales Practices Act;

(iii) is enjoined by a court, or is the subject of an administrative or judicial order issued in Utah or another state, if the order:

(A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or

(B) is based on a finding of a lack of integrity, truthfulness, or mental competence;

(iv) is convicted of a crime involving theft, fraud, or dishonesty;

(v) obtains or attempts to obtain a registration by misrepresenting a material fact;

(vi) fails to provide information the division requests;

(vii) fails to pay an administrative fine the division or an administrative or judicial order imposes; or

(viii) fails to pay the fee to file a registration application or a renewal application.

§ 13-51-105 Operating requirements.

(1) A transportation network company shall maintain an agent for service of process in the state in accordance with Subsection 13-51-104(2).

(2) A transportation network company may collect, on behalf of a transportation network driver, a fare for a prearranged ride if the transportation network company:

(a) posts the method for calculating the fare on the transportation network company's software application;

(b) provides a passenger the rate the transportation network company uses to calculate the fare for a prearranged ride; and

(c) allows a passenger the option to obtain an estimated fare for a prearranged ride before the passenger enters a transportation network driver's vehicle.

(3) For a prearranged ride, a transportation network company shall:

(a) before a passenger enters a transportation network driver's vehicle, display on the transportation network company's software application a picture of the transportation network driver;

(b) shortly after the prearranged ride is complete, transmit an electronic receipt to the passenger that lists:

(i) the prearranged ride's origin and destination;

(ii) the prearranged ride's total time and distance; and

(iii) an itemization of the total fare the passenger pays, if any; and

(c) allow a passenger to notify a transportation network driver if a passenger has skis, a snowboard, other oversize luggage, or child restraint device.

(4) A transportation network driver may not, while providing transportation network services:

(a) provide a ride to an individual who requests the ride by a means other than a transportation network company's software application;

(b) solicit or accept cash payments from a passenger; or

(5) A transportation network company shall maintain a record of:

(a) all trips, for a minimum of five years after the day on which the trip occurs; and

(b) all information in a transportation network company's possession regarding a transportation network driver, for a minimum of five years after the day on which the transportation network driver last provided transportation network services using the transportation network company's software application.

(6) A transportation network company shall adopt a policy that prohibits unlawful discrimination with respect to a passenger and shall:

(a) provide a copy of the policy to each transportation network driver; or

(b) post the policy on the transportation network company's website.

(7)

(a) A transportation network driver shall accommodate:

(i) a service animal; or

(ii) an individual with a physical disability.

(b) A transportation network driver or transportation network company may not impose an additional charge to provide the accommodations described in Subsections (7)(a) and (8).

(8) A transportation network company shall:

(a) allow a passenger to request a prearranged ride in a wheelchair-accessible vehicle; and

(b) if a wheelchair-accessible vehicle is not available to a passenger who requests a wheelchair-accessible vehicle under Subsection (8)(a), direct the passenger to a transportation service that provides wheelchair-accessible service, if available.

(9) A transportation network company shall disclose to a transportation network driver:

(a) a description of the insurance coverage the transportation network company provides the transportation network driver while the transportation network driver is providing transportation network services, including the insurance coverage's liability limit;

(b) that the transportation network company's automobile insurance policy may not provide coverage to the transportation network driver during a waiting period or a prearranged ride;

(c) that if the vehicle the transportation network driver uses to provide transportation network services has a lien against the vehicle, the transportation network driver is required to notify the lienholder that the transportation network driver is using the vehicle to provide transportation network services; and

(d) that using a vehicle with a lien against the vehicle to provide transportation network services may violate the transportation network driver's contract with the lienholder.

(10) A transportation network company and the transportation network company's insurer shall, for an incident that occurs while a transportation network driver is providing transportation network services:

(a) cooperate with a liability insurer that insures the vehicle the transportation network driver uses to provide the transportation network services;

(b) provide, to the liability insurer, the precise date and time that an incident occurred, including the precise time when a driver logged in or out of the transportation network company's software application; and

(c) provide the information described in Subsection (10)(b) to a liability insurer no later than 10 business days after the day on which the liability insurer requests the information from the transportation network company.

(11) If a transportation network company's insurer insures a vehicle with a lien against the vehicle, and the transportation network company's insurer covers a claim regarding the vehicle under comprehensive or collision coverage, the transportation network company shall direct the transportation network company's insurer to issue the payment for the claim:

(a) directly to the person that conducts the repair on the vehicle; or

(b) jointly to the owner of the vehicle and the primary lienholder.

§ 13-51-106 Transportation network driver drug or alcohol use policy.

(1) A transportation network company shall implement a policy that:

(a) provides that a transportation network driver may not use a drug or alcohol or be under the influence of a drug or alcohol while providing transportation network services;

(b) is posted on the transportation network company's website or software application; and

(c) provides procedures for a passenger to report to the transportation network company a transportation network driver who the passenger suspects violated the policy.

(2) If a transportation network company receives a complaint about a transportation network driver under Subsection (1)(c), the transportation network company shall:

(a) suspend the transportation network company driver; and

(b) conduct an investigation into the transportation network company driver and the conduct alleged in the complaint.

(3) A transportation network company shall maintain records related to a complaint or investigation under this section for a minimum of two years after the day on which the transportation network company receives the complaint.

§ 13-51-107 Driver requirements.

(1) Before a transportation network company allows an individual to use the transportation network company's software application as a transportation network driver, the transportation network company shall:

(a) require the individual to submit to the transportation network company:

(i) the individual's name, address, and age;

(ii) a copy of the individual's driver license, including the driver license number; and

(iii) proof that the vehicle that the individual will use to provide transportation network services is registered with the Division of Motor Vehicles;

(b) require the individual to consent to a criminal background check of the individual by the transportation network company or the transportation network company's designee; and

(2) A transportation company may not allow an individual to provide transportation network services as a transportation network driver if the individual:

(a) has committed more than three moving violations in the three years before the day on which the individual applies to become a transportation network driver;

(b) has been convicted, in the seven years before the day on which the individual applies to become a transportation network driver, of:

(i) driving under the influence of alcohol or drugs;

(ii) fraud;

(iii) a sexual offense;

(iv) a felony involving a motor vehicle;

(v) a crime involving property damage;

(vi) a crime involving theft;

(vii) a crime of violence; or

(viii) an act of terror;

(c) is required to register as a sex offender, kidnap offender, or child abuse offender in accordance with Title 53, Chapter 29, Sex, Kidnap, and Child Abuse Offender Registry;

(d) does not have a valid Utah driver license; or

(e) is not at least 18 years old.

(3)

(a) A transportation network company shall prohibit a transportation network driver from accepting a request for a prearranged ride if the motor vehicle that the transportation network driver uses to provide transportation network services fails to comply with:

(i) equipment standards described in Section 41-6a-1601; and

(ii) emission requirements adopted by a county under Section 41-6a-1642.

(b)

(i) If upon visual inspection, a defect relating to the equipment standards described in Section 41-6a-1601 can be reasonably identified, an airport operator may perform a safety inspection of a transportation network driver's vehicle operating within the airport to ensure compliance with equipment standards described in Section 41-6a-1601.

(ii) An airport operator shall conduct all inspections under this Subsection (3) in such a manner to minimize impact to the transportation network driver's and transportation network company vehicle's availability to provide prearranged rides.

(4) A transportation network driver, while providing transportation network services, shall carry proof, in physical or electronic form, that the transportation network driver is covered by insurance that satisfies the requirements of Section 13-51-108.

§ 13-51-108 Insurance.

(1) A transportation network company or a transportation network driver shall maintain insurance that covers, on a primary basis, a transportation network driver's use of a vehicle during a prearranged ride and that includes:

(a) an acknowledgment that the transportation network driver is using the vehicle in connection with a transportation network company during a prearranged ride or that the transportation network driver is otherwise using the vehicle for a commercial purpose;

(b) liability coverage for a minimum amount of $1,000,000 per occurrence;

(d) uninsured motorist coverage where required by Section 31A-22-305; and

(e) underinsured motorist coverage where required by Section 31A-22-305.3.

(2) A transportation network company or a transportation network driver shall maintain insurance that covers, on a primary basis, a transportation network driver's use of a vehicle during a waiting period and that includes:

(a) an acknowledgment that the transportation network driver is using the vehicle in connection with a transportation network company during a waiting period or that the transportation network driver is otherwise using the vehicle for a commercial purpose;

(b) liability coverage in a minimum amount, per occurrence, of:

(i) $50,000 to any one individual;

(ii) $100,000 to all individuals; and

(iii) $30,000 for property damage;

(d) uninsured motorist coverage where required by Section 31A-22-305; and

(e) underinsured motorist coverage where required by Section 31A-22-305.3.

(3) A transportation network company and a transportation network driver may satisfy the requirements of Subsections (1) and (2) by:

(a) the transportation network driver purchasing coverage that complies with Subsections (1) and (2);

(b) the transportation network company purchasing, on the transportation network driver's behalf, coverage that complies with Subsections (1) and (2); or

(4) An insurer may offer to a transportation network driver a personal automobile liability insurance policy, or an amendment or endorsement to a personal automobile liability policy, that:

(a) covers a private passenger motor vehicle while used to provide transportation network services; and

(b) satisfies the coverage requirements described in Subsection (1) or (2).

(5) Nothing in this section requires a personal automobile insurance policy to provide coverage while a driver is providing transportation network services.

(6) If a transportation network company does not purchase a policy that complies with Subsections (1) and (2) on behalf of a transportation network driver, the transportation network company shall verify that the driver has purchased a policy that complies with Subsections (1) and (2).

(7) An insurance policy that a transportation network company or a transportation network driver maintains under Subsection (1) or (2):

(a) satisfies the security requirements of Section 41-12a-301; and

(b) may be placed with:

(i) an insurer that is certified under Section 31A-4-103; or

(ii) a surplus lines insurer eligible under Section 31A-15-103.

(8) An insurer that provides coverage for a transportation network driver explicitly for the transportation network driver's transportation network services under Subsection (1) or (2) shall have the duty to defend a liability claim arising from an occurrence while the transportation network driver is providing transportation network services.

(9) If insurance a transportation network driver maintains under Subsection (1) or (2) lapses or ceases to exist, a transportation network company shall provide coverage complying with Subsection (1) or (2) beginning with the first dollar of a claim.

(10)

(a) An insurance policy that a transportation network company or transportation network driver maintains under Subsection (1) or (2) may not provide that coverage is dependent on a transportation network driver's personal automobile insurance policy first denying a claim.

(b) Subsection (10)(a) does not apply to coverage a transportation network company provides under Subsection (9) in the event a transportation network driver's coverage under Subsection (1) or (2) lapses or ceases to exist.

(11) A personal automobile insurer:

(a) notwithstanding Section 31A-22-302, may offer a personal automobile liability policy that excludes coverage for a loss that arises from the use of the insured vehicle to provide transportation network services; and

(b) does not have the duty to defend or indemnify a loss if an exclusion described in Subsection (11)(a) excludes coverage according to the policy's terms.

§ 13-51-109 Preemption clause.

(1) Except as provided in Subsection (2), this chapter supersedes any regulation of a municipality, county, or local government regarding a transportation network company, a transportation network driver, or transportation network services.

(2) This chapter does not supersede a municipal, county, or local government regulation regarding a transportation network driver providing transportation network services at an airport.

§ 13-51-110 Enforcement powers of the division.

(1) In addition to the division's enforcement powers described in Chapter 2, Division of Consumer Protection:

(a) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(b) the division may bring an action in a court with jurisdiction to enforce a provision of this chapter.

(2) If the division brings an action in accordance with Subsection (1)(b):

(a) the court may:

(i) declare that an act or practice violates a provision of this chapter;

(ii) issue an injunction for a violation of this chapter;

(iii) order disgorgement of any money received in violation of this chapter;

(iv) order payment of disgorged money to an injured purchaser or consumer;

(v) impose a fine of up to $2,500 for each violation of this chapter; or

(vi) award any other relief that the court deems reasonable and necessary; and

(b) if the court grants judgment or injunctive relief to the division, the court shall award the division:

(i) reasonable attorney fees;

(ii) court costs; and

(iii) investigative fees.

Chapter 52 Residential Solar Energy Consumer Protection Act

Part 1 General Provisions

§ 13-52-102 Definitions.

As used in this chapter:

(1) "Actual energy production" means the average kilowatt-hours produced and measured by the residential solar energy system during the 12 consecutive months immediately following the residential solar energy system's activation.

(2) "Customer" means a person that, for primarily personal, family, or household purposes:

(a) purchases, or is solicited to purchase, a residential solar energy system under a system purchase agreement;

(b) leases, or is solicited to lease, a residential solar energy system under a system lease agreement; or

(3) "Division" means the Division of Consumer Protection, established in Section 13-2-102.

(4)

(a) "Employee" means an individual whose compensation for federal income tax purposes is reported, or is required to be reported, on a W-2 form the employer issues.

(b) "Employee" does not include an independent contractor whose manner and means of work performance are not subject to direction, supervision, or instruction from the person who employs the independent contractor.

(5) "Estimated energy production" means the solar retailer's estimate, measured by kilowatt-hour, of how much energy the residential solar energy system will produce.

(6) "Nameplate capacity" means the sum of the maximum rated outputs of all electrical generating equipment under specific conditions the manufacturer designates, as indicated on the nameplate physically attached to the equipment.

(7) "Participant" means an owner, officer, director, member or manager of a limited liability company, principal, trustee, general or limited partner, sole proprietor, or an individual, with a controlling interest in an entity.

(8) "Power purchase agreement" means an agreement:

(a) between a customer and a solar retailer;

(b) for the customer's purchase of electricity that a residential solar energy system owned by the solar retailer generates; and

(9)

(a) "Residential solar energy system" means a solar energy system that:

(i) is installed in the state;

(ii) generates electricity primarily for on-site consumption for personal, family, or household purposes;

(iii) is situated on no more than four units of residential real property; and

(iv) has an electricity delivery capacity that exceeds one kilowatt.

(b) "Residential solar energy system" does not include a generator that:

(i) produces electricity; and

(ii) is intended for occasional use.

(10) "Sales representative" means an individual who:

(a)

(i) enters into a business relationship with a solar retailer to sell or attempt to sell a residential solar energy system through direct contact with customers and potential customers; and

(ii) as part of the business relationship described in Subsection (10)(a), is compensated, in whole or in part, by commission; or

(b) sets appointments or discusses the benefits of solar energy with a potential customer on behalf of a solar retailer.

(11) "Solar agreement" means a system purchase agreement, a system lease agreement, or a power purchase agreement.

(12) "Solar energy system" means a system or configuration of solar energy devices that collects and uses solar energy to generate electricity.

(13) "Solar retailer" means a person who:

(a) sells or proposes to sell a residential solar energy system to a customer under a system purchase agreement;

(b) owns the residential solar energy system that is the subject of a system lease agreement or proposed system lease agreement; or

(14) "System lease agreement" means an agreement:

(a) under which a customer leases a residential solar energy system from a solar retailer; and

(b) that provides for the customer to make payments over a term of at least five years for the lease of the residential solar energy system.

(15) "System purchase agreement" means an agreement under which a customer purchases a residential solar energy system from a solar retailer.

§ 13-52-103 Applicability of chapter.

This chapter:

(1) applies to each solar agreement entered into on or after September 3, 2018, including a solar agreement that accompanies the transfer of ownership or lease of real property; and

(2) does not apply to:

(a) the transfer of title or rental of real property on which a residential solar energy system is or is expected to be located, if the presence of the residential solar energy system is incidental to the transfer of title or rental;

(b) a lender, governmental entity, or other third party that enters into an agreement with a customer to finance a residential solar energy system but is not a party to a system purchase agreement, power purchase agreement, or lease agreement;

(c) a sale or lease of, or the purchase of electricity from, a solar energy system that is not a residential solar energy system; or

(d) the lease of a residential solar energy system or the purchase of power from a residential solar energy system under an agreement providing for payments over a term of less than five years.

Part 2 Disclosure Statement

§ 13-52-201 Disclosure statement required.

(1) At the time of entering a solar agreement, a solar retailer shall provide to a potential customer a separate, written disclosure statement as provided in this section and, as applicable, Sections 13-52-202, 13-52-203, 13-52-204, and 13-52-205.

(2) A disclosure statement under Subsection (1) shall:

(a) be in paper form;

(b) be in at least 12-point font;

(i) the name, address, telephone number, and any email address of the potential customer;

(ii) the name, address, telephone number, and email address of the solar retailer; and

(iii)

(A) the name, address, telephone number, email address, and state contractor license number of the person who is expected to install the system that is the subject of the solar agreement; and

(B) if the solar retailer selected the person who is expected to provide operations or maintenance support to the potential customer or introduced that person to the potential customer, the name, address, telephone number, email address, and state contractor license of the operations or maintenance support person; and

(d) include applicable information and disclosures as provided in Sections 13-52-202, 13-52-203, 13-52-204, and 13-52-205.

§ 13-52-202 Contents of disclosure statement for any solar agreement.

If a solar retailer is proposing to enter any solar agreement with a potential customer, the disclosure statement required in Subsection 13-52-201(1) shall include:

(1) a statement indicating that operations or maintenance services are not included as part of the solar agreement, if those services are not included as part of the solar agreement;

(2) if the solar retailer provides any written estimate of the savings the potential customer is projected to realize from the residential solar energy system:

(a)

(i) the estimated projected savings over the life of the solar agreement; and

(ii) at the discretion of the solar retailer, the estimated projected savings over any longer period not to exceed the anticipated 20-year useful life of the residential solar energy system;

(b) any material assumptions used to calculate estimated projected savings and the source of those assumptions, including:

(i) if an annual electricity rate increase is assumed, the rate of the assumed increase, which may not be greater than 3%, and the solar retailer's basis for the assumption of the rate increase;

(ii) the potential customer's eligibility for or receipt of tax credits or other governmental or utility incentives;

(iii) residential solar energy system production data, including production degradation;

(iv) the residential solar energy system's eligibility for interconnection under any net metering or similar program;

(v) electrical usage and the residential solar energy system's designed offset of the electrical usage;

(vi) historical utility costs paid by the potential customer;

(vii) any rate escalation affecting a payment between the potential customer and the solar retailer; and

(viii) the costs associated with replacing equipment making up part of the residential solar energy system or, if those costs are not assumed, a statement indicating that those costs are not assumed; and

(c) three separate statements in capital letters in close proximity to any written estimate of projected savings, with substantially the following form and content:

(i) "THIS IS AN ESTIMATE. UTILITY RATES MAY GO UP OR DOWN AND ACTUAL SAVINGS, IF ANY, MAY VARY. HISTORICAL DATA ARE NOT NECESSARILY REPRESENTATIVE OF FUTURE RESULTS. FOR FURTHER INFORMATION REGARDING RATES, CONTACT YOUR LOCAL UTILITY OR THE STATE PUBLIC SERVICE COMMISSION.";

(ii) "ESTIMATES OF ENERGY PRODUCTION GENERATED BY A RESIDENTIAL SOLAR ENERGY SYSTEM MAY VARY. THE RESIDENTIAL SOLAR ENERGY SYSTEM MAY PRODUCE MORE OR LESS THAN THE ESTIMATED ENERGY PRODUCTION."; and

(iii) "TAX AND OTHER FEDERAL, STATE, AND LOCAL INCENTIVES VARY AS TO REFUNDABILITY AND ARE SUBJECT TO CHANGE OR TERMINATION BY LEGISLATIVE OR REGULATORY ACTION, WHICH MAY IMPACT SAVINGS ESTIMATES. CONSULT A TAX PROFESSIONAL FOR MORE INFORMATION.";

(3) a notice stating: "Legislative or regulatory action may affect or eliminate your ability to sell or get credit for any excess power generated by the solar energy system, and may affect the price or value of that power.";

(4) the notice described in Subsection 13-11-4(2)(m) or Subsection 13-26-105(3)(a), if applicable;

(5) a statement describing the solar energy system and indicating the solar energy system design assumptions, including the make and model of the solar panels and inverters, solar energy system size, positioning of the panels on the customer's property, estimated first-year energy production, and estimated annual energy production degradation, including the overall percentage degradation over the term of the solar agreement or, at the solar retailer's option, over the estimated useful life of the solar energy system;

(6) a description of any warranty, representation, or guarantee of energy production of the solar energy system;

(7) the approximate start and completion dates for the installation of the solar energy system;

(8) the statement: "The solar retailer may not begin installation of the system until at least four business days after the day on which the solar retailer and customer enter into a contract.";

(9)

(a) a statement indicating whether the solar retailer may transfer any warranty or maintenance obligations related to the solar energy system to a third party; and

(b) if the solar retailer may transfer any warranty or maintenance obligations related to the solar energy system, the statement: "The maintenance and repair obligations under your contract may be assigned or transferred without your consent to a third party who will be bound to all the terms of the contract. If a transfer occurs, you will be notified of any change to the address, email address, or phone number to use for questions or payments or to request solar energy system maintenance or repair.";

(10) if the solar retailer will not obtain customer approval to connect the solar energy system to the customer's utility, a statement to that effect and a description of what the customer shall do to interconnect the solar energy system to the utility;

(11) a description of any roof penetration warranty or other warranty that the solar retailer provides the customer or a statement, in bold capital letters, that the solar retailer does not provide any warranty;

(12) a statement indicating whether the solar retailer will make a fixture filing or other notice in the county real property records covering the solar energy system, including a Notice of Independently Owned Solar Energy System, and any fees or other costs associated with the filing that the solar retailer may charge the customer;

(13) a statement in capital letters with the following form and content: "NO EMPLOYEE OR REPRESENTATIVE OF [name of solar retailer] IS AUTHORIZED TO MAKE ANY PROMISE TO YOU THAT IS NOT CONTAINED IN THIS DISCLOSURE STATEMENT CONCERNING COST SAVINGS, TAX BENEFITS, OR GOVERNMENT OR UTILITY INCENTIVES. YOU SHOULD NOT RELY UPON ANY PROMISE OR ESTIMATE THAT IS NOT INCLUDED IN THIS DISCLOSURE STATEMENT.";

(14) a statement in capital letters with substantially the following form and content: "[name of solar retailer] IS NOT AFFILIATED WITH ANY UTILITY COMPANY OR GOVERNMENT AGENCY. NO EMPLOYEE OR REPRESENTATIVE OF [name of solar retailer] IS AUTHORIZED TO CLAIM AFFILIATION WITH A UTILITY COMPANY OR GOVERNMENT AGENCY.";

(15) a statement with the name and contact information of the person that will perform the installation;

(16) a statement that the state may require the potential customer, at full cost to the potential customer, to:

(a) test a residential solar energy system for a hazardous substance before disposal; and

(b) dispose of a residential solar energy system in accordance with state law or risk a civil penalty up to $10,000 per day for each day of violation;

(17) a notice that the solar retailer may not sell the contract to another solar company without express customer approval;

(18) a conspicuous list of:

(a) finance fees, including those not charged directly to the customer; and

(b) solar energy system operation and maintenance that the customer is obligated to perform to comply with the terms of the guarantee of the minimum energy production; and

(19) any additional information, statement, or disclosure the solar retailer considers appropriate, as long as the additional information, statement, or disclosure does not have the purpose or effect of obscuring the disclosures required under this part.

§ 13-52-203 Contents of disclosure statement for system purchase agreement.

If a solar retailer is proposing to enter a system purchase agreement with a potential customer, the disclosure statement required in Subsection 13-52-201(1) shall include:

(1) a statement with substantially the following form and content: "You are entering an agreement to purchase an energy generation system. You will own the system installed on your property. You may be entitled to federal tax credits because of the purchase. You should consult your tax advisor.";

(2) the price quoted to the potential customer for a cash purchase of the system;

(3)

(a) the schedule of required and anticipated payments from the customer to the solar retailer and third parties over the term of the system purchase agreement, including application fees, up-front charges, down payment, scheduled payments under the system purchase agreement, payments at the end of the term of the system purchase agreement, payments for any operations or maintenance contract offered by or through the solar retailer in connection with the system purchase agreement, and payments for replacement of system components likely to require replacement before the end of the useful life of the system as a whole; and

(b) the total of all payments referred to in Subsection (3)(a);

(4) a statement indicating that the cost of insuring the system is not included within the schedule of payments under Subsection (3);

(5) a statement, if applicable, with substantially the following form and content: "You are responsible for obtaining insurance coverage for any loss or damage to the system. You should consult an insurance professional to understand how to protect against the risk of loss or damage to the system. You should also consult your home insurer about the potential impact of installing a system."; and

(6) information about whether the system may be transferred to a purchaser of the home or real property where the system is located and any conditions for a transfer.

§ 13-52-204 Contents of disclosure statement for system lease agreement.

If a solar retailer is proposing to enter a system lease agreement with a potential customer, the disclosure statement required in Subsection 13-52-201(1) shall include:

(1) a statement with substantially the following form and content: "You are entering an agreement to lease an energy generation system. You will lease (not own) the system installed on your property. You will not be entitled to any federal tax credit associated with the lease.";

(2) information about whether the system lease agreement may be transferred to a purchaser of the home or real property where the system is located and, if so, any conditions for a transfer;

(3) if the solar retailer will not obtain insurance against damage or loss to the system, a statement to that effect and a description of the consequences to the customer if there is damage or loss to the system; and

(4) information about what will happen to the system at the end of the term of the system lease agreement.

§ 13-52-205 Contents of disclosure statement for power purchase agreement.

If a solar retailer is proposing to enter a power purchase agreement with a potential customer, the disclosure statement required in Subsection 13-52-201(1) shall include:

(1) a statement with substantially the following form and content: "You are entering an agreement to purchase power from an energy generation system. You will not own the system installed on your property. You will not be entitled to any federal tax credit associated with the purchase.";

(2) information about whether the power purchase agreement may be transferred to a purchaser of the home or real property where the system is located and, if so, any conditions for a transfer;

(4) information about what will happen to the system at the end of the term of the power purchase agreement.

§ 13-52-206 Good faith estimate -- Obligation to repair.

(1) A solar retailer that does not have, at the time of providing a disclosure statement required by Subsection 13-52-201(1), information required under Section 13-52-202, 13-52-203, 13-52-204, or 13-52-205 to be included in the disclosure statement may make a good faith estimate of that information to the customer, if the solar retailer clearly indicates that the information is an estimate and provides the basis for the estimate.

(2) For 18 months after the day on which a residential solar energy system begins producing usable power, a customer may notify the solar retailer that the residential solar energy system is producing less than 80% of the solar retailer's good faith estimate of energy production.

(3)

(a) A solar retailer that receives a notification described in Subsection (2) shall repair or improve a residential solar energy system's performance so that the residential solar energy system produces 90% or more of the original estimated energy production.

(b) A solar retailer shall make the repairs or improvements described in Subsection (3)(a) within six months after the day on which the solar retailer receives notification from a customer.

(4)

(a) A customer that notifies the solar retailer in accordance with Subsection (2) may pursue any other available remedies or rights authorized under the laws of this state.

(b) A solar retailer may offer warranty terms that exceed the protection offered by this section.

§ 13-52-207 Customer ability to cancel solar agreement.

(1) A solar retailer shall provide to the customer a copy of the signed solar agreement, including any disclosures required under this chapter:

(a) in electronic and in paper form, unless the customer declines the paper copy in writing; and

(b) if the solar retailer marketed services for residential solar energy systems to the customer in a language other than English, in that language.

(2) A solar agreement is not enforceable against the customer unless the requirements in Subsection (1) are met.

(3) A solar retailer may not begin installation of any solar equipment until four business days after the day on which the solar retailer provides the customer the solar agreement described in Subsection (1).

(4) If a customer cancels a solar agreement under Subsection 13-11-4(2)(m) or Subsection 13-26-105(3)(a), the solar retailer shall within 10 days:

(a) return any check signed by the customer as payment under the terms of the solar agreement; and

(b) refund any money provided by the customer under the terms of the solar agreement.

(5) A solar agreement described in Subsection (1) shall clearly:

(a) state the customer's right to cancel the solar agreement under this section; and

(b) provide an email address and a mailing address where the customer can send the solar retailer a notice of cancellation of the solar agreement.

(6) Subsection (1)(a) only applies to sales where the customer has a right to cancel the purchase as described in Subsection 13-11-4(2)(m) or Subsection 13-2-105(3)(a).

Part 3 Enforcement

§ 13-52-301 Division enforcement authority -- Administrative fine.

(1) Subject to Subsection (2), the division may enforce the provisions of this chapter by:

(a) conducting an investigation into an alleged violation of this chapter;

(b) issuing a cease and desist order against a further violation of this chapter;

(d) the division may bring an action in a court of competent jurisdiction to enforce a provision of this chapter.

(2) In a court action by the division to enforce a provision of this chapter, the court may:

(a) declare that an act or practice violates a provision of this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured purchaser or consumer;

(e) impose a fine of up to $2,500 for each violation of this chapter; or

(f) award any other relief that the court deems reasonable and necessary.

(3) The division shall, in its discretion:

(a) deposit an administrative fine collected under Subsection (1)(c) in the Consumer Protection Education and Training Fund created in Section 13-2-109; or

(b) distribute an administrative fine collected under Subsection (1)(c) to a customer adversely affected by the solar retailer's failure or violation resulting in a fine under Subsection (1)(c), if the division has conducted an administrative proceeding resulting in a determination of the appropriateness and amount of any distribution to a customer.

(4) Nothing in this chapter may be construed to affect:

(a) a remedy a customer has independent of this chapter; or

(b) the division's ability or authority to enforce any other law or regulation.

§ 13-52-302 Registration and security required.

(1)

(a) On or after July 1, 2026, a solar retailer may not operate in this state without being registered with the division.

(b) Except as provided in Subsection (1)(c), a registration under this section is valid for one year after the day on which the solar retailer registers with the division.

(c) The division may extend the period for which a solar retailer's registration is effective by up to six months so that expiration dates are staggered throughout the year.

(2)

(a) A solar retailer shall submit an application for registration to the division in a manner the division establishes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:

(i) the solar retailer's sales representative communicates with customers or potential customers in the state; or

(ii) the solar retailer, or the solar retailer's sales representative, conducts any business operations in the state.

(b) An application for registration shall designate a registered agent for service of process in this state and include the registered agent's:

(i) name;

(ii) street address;

(iii) mailing address; and

(iv) telephone number.

(c) If a solar retailer fails to designate an agent to receive service or fails to appoint a successor to the agent, the division shall deny the solar retailer's application for registration.

(d) As a part of the registration, each solar retailer shall submit proof of obtaining and maintaining the following security in a form approved by the division:

(i) a performance bond issued by a surety authorized to transact surety business in this state; or

(ii) a certificate of deposit in a financial institution authorized under the laws of this state or the United States to accept deposits from the public.

(3) The division shall impose an annual registration fee set in accordance with Section 63J-1-504 that includes the cost of the criminal background check described in this Subsection (3).

(4) To register as a solar retailer, a solar retailer and the solar retailer's participants:

(a) may not have been convicted of a felony or misdemeanor involving theft, fraud, or dishonesty, in the 10-year period immediately before the day on which the solar retailer files the application; and

(b) shall submit to the division:

(i) each participant's fingerprints, in a form acceptable to the division, for purposes of a criminal background check;

(ii) consent to a criminal background check by:

(A) the Bureau of Criminal Identification created in Section 53-10-201; or

(B) another state or federal agency that performs criminal background checks in this state or the United States; and

(iii) payment for the cost of the fingerprint card and criminal background check described in Subsections (4)(b)(i) and (ii).

(5) A solar retailer shall update registration information within 30 days after the day on which information provided on the application becomes incorrect or incomplete.

(6) A solar retailer that is a publicly traded corporation registered with the Securities and Exchange Commission is exempt from the requirements described in Subsection (4).

(7) The division may claim a solar retailer's surety bond or certificate of deposit for the benefit of a customer who incurs damages as the result of the solar retailer's failure to comply with this chapter.

(8)

(a) For purposes of this section, damages incurred by a customer include:

(i) labor and materials necessary to complete the installation of a residential solar energy system that is partially installed; and

(ii) damage to a customer's home caused during installation or repair of the residential solar energy system.

(b) After a customer recovers full damages, the division may recover from the bond or certificate of deposit any administrative fines, civil penalties, investigative costs, attorney fees, and other costs of collecting and distributing funds under this section.

(9) A solar retailer shall submit proof of obtaining and maintaining the following in a form the division approves:

(a) a surety bond issued by a surety authorized to transact business in this state; or

(b) a certificate of deposit in a financial institution authorized under the laws of this state or the laws of the United States to accept deposits from the public.

(10) The surety bond or certificate of deposit described in Subsection (9) shall be in the amount of:

(a) $100,000 if:

(i) the solar retailer or an affiliated person has not violated a chapter the division enforces, as described in Section 13-2-102, in the three-year period immediately before the day on which the solar retailer files the application;

(ii) the solar retailer has fewer than ten employees; and

(iii) the solar retailer sells fewer than 500 kilowatts nameplate capacity annually;

(b) $200,000 if:

(ii) the solar retailer has ten or more employees; or

(iii) the solar retailer sells more than 500 kilowatts nameplate capacity annually; or

(c) $300,000 if the solar retailer or an affiliated person has violated a chapter the division enforces, as described in Section 13-2-102, the three-year period immediately before the day on which the solar retailer files the application.

(11) Beginning July 1, 2026, a solar retailer that operates in this state violates this chapter each time the solar retailer sells a residential solar energy system without first registering with the division.

(12) The division director may deny, suspend, or revoke a solar retailer's registration if:

(a) a solar retailer or a solar retailer's participant:

(i) violates a statute the division enforces within the preceding five years; or

(ii) fails to pay a fine or comply with a term of settlement with the division;

(b) the division claims the solar retailer's bond or certificate of deposit; or

(c) the division receives ten or more complaints from consumers about the solar retailer related to the solar energy system's energy production and finds substantial evidence that the solar retailer has provided good faith estimates for residential solar energy systems that do not produce 80% or more of the solar retailer's estimated energy production.

(13) A solar retailer may not:

(a) represent that the division or the state endorses or approves the solar retailer;

(b) omit from a filing with the division a material statement of fact that this chapter or rule the division makes in accordance with this chapter requires; or

(c) include in a filing with the division a material statement of fact that the solar retailer or the solar retailer's principal knows or should know is false, deceptive, inaccurate, or misleading.

Part 4 Sales Representative

§ 13-52-401 Sales representative relationship.

A sales representative shall be an employee of the solar retailer.

Part 5 Financial Obligations

§ 13-52-501 Customer financial obligations.

(1) A customer shall pay, on the date provided in the solar agreement, the costs of the solar energy system's:

(a) design, not to exceed the greater of $1,500 or 3% of the total cost of the solar agreement;

(b) equipment procurement, not to exceed 25% of the total cost of the solar agreement; and

(c) installation, not to exceed 80% of the total cost of the solar agreement inclusive of payments due in accordance with Subsections (1)(a) and (1)(b).

(d) A solar retailer may not collect the remaining balance of the solar agreement from a customer until the residential solar energy system is producing usable energy.

Chapter 53 Residential Vocational Or Life Skills Program Act

§ 13-53-102 Definitions.

As used in this chapter:

(1) "Division" means the Division of Consumer Protection.

(2) "Human services program" means the same as that term is defined in Section 26B-2-101.

(3) "Participant" means an individual who:

(a) resides at a residential vocational or life skills program facility;

(b) receives from the residential vocational or life skills program:

(i) vocational training; or

(ii) life skills training; and

(4) "Postsecondary school" means the same as that term is defined in Section 13-34-101.

(5) "Residential vocational or life skills program" means a program that:

(a) is operated by a nonprofit corporation, as defined in Section 16-6a-102;

(b) does not accept local, state, or federal government funding, government grant money, or any other form of government assistance to operate or provide services or training;

(d) houses at a program facility in this state participants who are unrelated to an owner or a manager of the program facility without charging money for lodging, food, clothing, or training;

(e) may house transitional graduates for a fee;

(f) provides vocational or life skills training to participants;

(g) maintains a director or senior staff member at a program facility at all times when the facility is in use;

(h) does not provide mental health services;

(i) does not provide substance use disorder treatment;

(j) does not accept payment from an insurance provider for a participant;

(k) does not award a degree, diploma, or other educational credential commensurate with a degree or diploma;

(l) does not hold itself out as a human services program; and

(m) does not hold itself out as a postsecondary school.

(6) "Transitional graduate" means an individual who:

(a) graduated from a residential vocational or life skills program;

(b) continues to reside at the residential vocational or life skills program facility; and

(7) "Vocational training entity" is a commercial entity where a participant receives vocational training.

§ 13-53-103 Registration of a residential vocational or life skills program.

(1) An owner or a manager of a residential vocational or life skills program shall annually register the residential vocational or life skills program with the division.

(2) An application for registration shall:

(a) be on a form the division approves; and

(b) include:

(i) the name, address, telephone number, email address, and website of the nonprofit corporation operating the residential vocational or life skills program;

(ii) a designated registered agent for service of process in the state, and the registered agent's:

(A) name;

(B) street address;

(D) telephone number;

(iii) the name, address, telephone number, email address, and website of the residential vocational or life skills program;

(iv) the name and address of each entity that controls, is controlled by, or is affiliated with the residential vocational or life skills program;

(v) the name and residential address of each officer, director, manager, or administrator of the residential vocational or life skills program;

(vi) the name, address, telephone number, email address, and website of each vocational training entity affiliated with the residential vocational or life skills program;

(vii) a disclosure indicating whether an officer, a director, or an administrator of the residential vocational or life skills program has been the subject of an administrative action by the division;

(viii) a disclosure indicating whether any officer, director, or administrator of the residential vocational or life skills program has been convicted of a felony or a misdemeanor involving theft, fraud, or dishonesty, in the 10-year period preceding the day on which the residential vocational or life skills program files the application;

(ix) financial information described in Subsection 13-53-108(1);

(x) proof of a commercial general liability and umbrella insurance policy providing at least a $1,000,000 per occurrence limit of liability;

(xi) a copy of the disclosure required under Section 13-53-106;

(xii) evidence that the applicant meets the description of a residential vocational or life skills program under Subsection 13-53-102(5); and

(xiii) additional information that the division requires, as provided in administrative rule.

(3) A residential vocational or life skills program is registered on the day that the division issues the registration.

(4) The division's issuance of a registration for a residential vocational or life skills program does not constitute the state's or the division's endorsement or approval of the residential vocational or life skills program.

(5) An applicant for the registration of a residential vocational or life skills program shall file a separate application and pay a separate application fee for each residential vocational or life skills program location.

(6) The division may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement the registration application process and administer this chapter.

(7) The division may set fees in accordance with Section 63J-1-504 for a residential vocational or life skills program registration application.

(8) An applicant for the registration of a residential vocational or life skills program shall update registration information within 30 days after the day on which information the applicant provides in the application becomes incorrect or incomplete.

(9) Registration of a residential vocational or life skills program is effective for one year after the day on which the division issues the registration.

(10) To renew a residential vocational or life skills program registration under this section, a residential vocation or life skills program shall submit a registration renewal application to the division at least 30 days before the day on which the residential vocational or life skills program's registration expires.

§ 13-53-104 Registration denial, suspension, or revocation.

(1) In accordance with Chapter 2, Division of Consumer Protection, and Title 63G, Chapter 4, Administrative Procedures Act, the division may initiate proceedings to deny, suspend, or revoke the registration of a residential vocational or life skills program, if the division finds that the denial, suspension, or revocation is in the public interest and:

(a)

(i) the entity holding the registration fails to meet the description of a residential vocational or life skills program under Subsection 13-53-102(5); and

(ii) the operation of the residential vocational or life skills program creates a serious risk to public safety or welfare;

(b) the residential vocational or life skills program does not have adequate controls to minimize associated risks to:

(i) the participants of the residential vocational or life skills program; and

(ii) the public;

(c) the registration application or any supplemental information the division requires is incomplete, false, misleading, or filed in an untimely manner; or

(d) the applicant or the applicant's principal:

(i) violates, causes a violation, allows a violation, or fails to satisfy the requirements of a provision of:

(A) this chapter; or

(B) a rule the division makes in accordance with this chapter;

(ii) violates Chapter 11, Utah Consumer Sales Practices Act;

(iii) is enjoined by a court, or is the subject of an administrative or judicial order issued in Utah or another state, if the order:

(A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or

(B) is based on a finding of a lack of integrity, truthfulness, or mental competence;

(iv) is convicted of a crime involving theft, fraud, or dishonesty;

(v) obtains or attempts to obtain a registration by misrepresenting a material fact;

(vi) fails to provide information the division requests;

(vii) fails to pay an administrative fine the division or an administrative or judicial order imposes; or

(viii) fails to pay the fee to file a registration application or a renewal application.

(2) The division may place reasonable limits upon a residential vocational or life skills program's operations, if:

(a) the division has reasonable concerns about the residential vocational or life skills program's ability to comply with this chapter; and

(b) the limitation is reasonably calculated to protect the interests of the public or the participants of the residential vocational or life skills program.

(3) When the demands of public safety permit, the division shall allow a residential vocational or life skills program a reasonable amount of time to remedy a violation under this chapter before the division suspends or revokes a registration.

(4) The division may require an individual described in Subsection 13-53-103(2)(b)(v) to submit to a criminal background check, at the individual's expense or the expense of the residential vocational or life skills program.

§ 13-53-105 Prohibited acts.

A residential vocational or life skills program may not:

(1) operate without a registration that the division issues under Section 13-53-103;

(2) utilize a behavioral intervention that is not peer-led or that uses the services of a professional or a person purporting to be a professional;

(3) accept a participant before providing to the participant the disclosure described in Section 13-53-106;

(4) use physical force or permit the use of physical force;

(5) represent that the division or the state endorses the residential vocational or life skills program;

(6) omit from a filing with the division a material statement of fact that this chapter or a rule the division makes in accordance with this chapter requires; or

(7) include in a filing with the division a material statement that the residential vocational or life skills program or the residential vocational or life skills program's principal knows or should know is false, deceptive, inaccurate, or misleading.

§ 13-53-106 Disclosure to participants.

(1) Before accepting a participant, a residential vocational or life skills program shall provide to the prospective participant a written disclosure.

(2) The written disclosure shall include:

(a) a statement that the program is a registered residential vocational or life skills program, but that the residential vocational or life skills program is not endorsed by the state or the division;

(b) a statement that the prospective participant's continuation in the program is voluntary and that a participant may leave at any time;

(c) the conditions under which a participant is removed from the residential vocational or life skills program or required to leave a program facility;

(d) a statement that the residential vocational or life skills program will contact the Division of Adult Probation and Parole created in Section 64-14-202, if required by law; and

(e) a description of:

(i) the lodging, food, clothing, and other resources that are available to a participant;

(ii) the nature and scope of the residential vocational or life skills program, including any activities or work that a participant is required to perform;

(iii) the scope and substance of peer-led activities;

(iv) the types of vocational training available to a participant, including the limitations on availability;

(v) the nature and extent of possible exposure to profanity, accusation, confrontation, nonphysical threats, or nonphysical corrective interaction;

(vi) the terms of any prohibition from contact with a participant's family, friends, or associates; and

(vii) any crimes committed within the previous two years at the residential vocational or life skills program facility or at a vocational training entity affiliated with the residential vocational or life skills program.

§ 13-53-107 Participant screening.

(1) A residential vocational or life skills program shall interview and screen all prospective participants for medical prescriptions, physical and mental health history, and recent alcohol or drug use.

(2) Unless an individual obtains a medical clearance from a physician or physician assistant, a residential vocational or life skills program may not have as a participant an individual who:

(a) has a recent diagnosis of a mental, social, psychiatric, or psychological illness; or

(b) has an active prescription for medication for a mental, social, psychiatric, or psychological illness.

(3) A residential vocational or life skills program may not admit a minor.

§ 13-53-108 Financial requirements.

(1) When applying for registration under Subsection 13-53-103(2), an applicant shall demonstrate financial responsibility by providing evidence to the division that the residential vocational or life skills program:

(a) is financially sound; and

(b) reasonably has the financial ability to fulfill commitments and obligations to the participants of the residential vocational or life skills program.

(2) Evidence acceptable to satisfy the requirement described in Subsection (1) includes:

(a) for a residential vocational or life skills program that has been in operation less than one fiscal year:

(i) pro forma financial statements until further information described in Subsection (2)(b) is available;

(ii) a commercial credit report for the residential vocational or life skills program; and

(iii) a personal credit report for:

(A) each owner of the residential vocational or life skills program who controls at least 10% of the ownership interests in the residential vocational or life skills program; or

(B) each individual that exercises substantial control over the residential or life skills program; or

(b) for a residential vocational or life skills program that has completed a fiscal year, and as soon as the residential vocational or life skills program completes the residential vocational or life skills program's first fiscal year:

(i) a current financial statement, with all applicable footnotes, for the most recent fiscal year, including a balance sheet, a statement of income, a statement of retained earnings, and a statement of cash flow; and

(ii) a certified financial audit of the residential vocational or life skills program's financial statement, that a certified public accountant performs.

(3) In evaluating a residential vocational or life skills program's financial responsibility, the division may consider:

(a) a judgment, tax lien, collection action, bankruptcy schedule, or history of late payments to creditors;

(b) documentation showing the resolution of a matter described in Subsection (3)(a);

(d) a guarantee agreement provided for the residential vocational or life skills program; and

(e) history of a prior entity that:

(i) is owned or operated by any individual who is an officer, a director, or an administrator of the residential vocational or life skills program; and

(ii) has failed to maintain financial responsibility.

(4) The division may require evidence of financial status at other times when requiring evidence of financial status is in the best interest of the program participants to require the information.

(5) The division may perform a fiscal audit of a residential vocational or life skills program.

(6) A residential vocational or life skills program shall develop and maintain adequate internal controls for receipt, management, and disbursement of money that are reasonable in light of the residential vocational or life skills program's organizational complexity.

§ 13-53-109 Discontinuance of operations.

(1) A residential vocational or life skills program that is closing shall adopt a plan for the provision of food, shelter, and clothing for at least 30 days from the date of closure to participants displaced by the closure.

(2) At least 30 days before the day on which the residential vocational or life skills program will close, the residential vocational or life skills program shall provide written notice to the division of:

(a) the intended date of closure; and

(b) the plan described in Subsection (1).

§ 13-53-110 Enforcement.

(1) The division may investigate facilities and enforce this chapter under the authority described in Chapter 2, Division of Consumer Protection.

(2) To monitor the welfare of participants and transitional graduates, if any, and to monitor the safe operation of a residential vocational or life skills program, the division shall:

(a) annually perform an on-site inspection of a registered residential vocational or life skills program;

(b) refer each concern that the division identifies during the on-site inspection to the state or municipal entity responsible for the area of concern; and

(c) coordinate with each relevant state and municipal entity to monitor the residential vocational or life skills program's compliance with the entity's relevant health and safety regulations.

(3) In addition to penalties established by this chapter and in addition to the enforcement authority described in Chapter 2, Division of Consumer Protection, the division may:

(a) impose an administrative fine of up to $2,500 for a violation of this chapter; and

(b) the division may bring an action in a court with jurisdiction to enforce a provision of this chapter.

(4) In a court action the division brings to enforce a provision of this chapter, the court may:

(a) declare that an act or practice violates a provision of this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured purchaser or consumer;

(e) impose a fine of up to $2,500 for each violation of this chapter; or

(f) award any other relief that the court deems reasonable and necessary.

§ 13-53-111 Recidivism reporting requirements.

(1) On or before August 31 of each year, a residential vocational or life skills program shall collect and report data on recidivism of participants to the Department of Criminal Justice.

(2) The report described in Subsection (1) shall include the metrics and requirements described in Section 75E-2-203.

(3) The Department of Criminal Justice shall include the information provided under this section in the report described in Subsection 75E-2-202(19).

Chapter 54 Ticket Website Sales Act

Part 1 General Provisions

§ 13-54-101 Title.

This chapter is known as the "Ticket Website Sales Act."

§ 13-54-102 Definitions.

(1) "Consumer" means a person who purchases a ticket for use by the person or the person's invitee.

(2) "Division" means the Division of Consumer Protection in the Department of Commerce.

(3) "Domain" means the portion of text in a URL that is to the left of the top-level domain.

(4) "Event" means a single, specific occurrence of one of the following, that takes place at a venue:

(a) a concert;

(b) a game;

(d) a show; or

(e) an occasion similar to the occasions described in Subsections (4)(a) through (d).

(5) "Event participant" means any of the following persons who is associated with an event or on behalf of whom a person sells a ticket to an event:

(a) an artist;

(b) a league;

(d) a tour group;

(e) a venue; or

(f) any person similar to the persons described in Subsections (5)(a) through (e).

(6) "Person" does not include a government entity.

(7) "Primary ticket seller" means the person who first sells a particular ticket.

(8)

(a) "Reseller" means a person who sells or offers for sale a ticket after it is sold by a primary ticket seller.

(b) "Reseller" includes a person who engages in conduct described in Subsection (8)(a), regardless of whether the person is also the primary ticket seller of the ticket or the primary ticket seller of another ticket to the same event.

(c) "Reseller" does not include a person who transfers a ticket to another person without reimbursement or consideration.

(9) "Ticket" means evidence of an individual's right of entry to an event.

(10) "Ticket aggregator" means a person who aggregates the prices for which other persons offer tickets for sale or resale.

(11) "Ticket purchasing software" means software that is primarily designed for the purpose of:

(a) interfering with the sale of tickets by circumventing controls or measures on a ticket website to bypass posted event ticket purchasing limits; or

(b) undermining the integrity of posted online ticket purchasing order rules.

(12) "Ticket website" means:

(a) with respect to a reseller, a website on which the reseller sells or offers for sale or resale one or more tickets; or

(b) with respect to a ticket aggregator, a website on which the ticket aggregator aggregates the prices for which other persons offer tickets for sale or resale.

(13) "Top-level domain" includes .com, .net, and .org.

(14) "URL" means the uniform resource locator for a website on the Internet.

(15)

(a) "Venue" means real property located in the state where one or more persons host a concert, game, performance, show, or similar occasion.

(b) "Venue" includes an arena, a stadium, a theater, a concert hall, an amphitheater, a fairground, a club, a convention center, a public assembly facility, or a mass gathering location.

§ 13-54-103 Exemptions.

(1) This chapter does not apply to:

(a) an entity that is owned, controlled, operated, or maintained by a bona fide church or religious organization that is exempt from property taxation under the laws of the state; or

(b) a consumer reselling a ticket that the consumer purchased as a consumer.

(2) A person who claims an exemption under this section has the burden of proving that the person is entitled to the exemption.

Part 2 Requirements and Prohibited Practices

§ 13-54-201 Disclosure requirements.

(1) A reseller or ticket aggregator shall clearly and conspicuously disclose on each of its ticket websites that:

(a) the website is a secondary market and is not the primary ticket seller; and

(b) the price of a ticket on the website may be higher than face value.

(2) A primary ticket seller and a reseller shall clearly and conspicuously disclose during the checkout process an itemization of the total price for which the primary ticket seller or reseller is offering the ticket for sale or resale, including taxes and each fee.

§ 13-54-202 Prohibited practices.

(1)

(a) It is unlawful for any person who is not a primary ticket seller to represent, directly or indirectly, that the person is a primary ticket seller.

(b) If a presiding officer or court determines appropriate after considering other relevant factors, the following actions by a person who is not a primary ticket seller establish a presumption that the person is representing that the person is a primary ticket seller in violation of Subsection (1)(a):

(i) using the name of an event in the domain of the person's ticket website, unless the person has written authorization from an agent of the event;

(ii) using the name of an event participant in the domain of the person's ticket website, unless the person has written authorization from the event participant or an agent of the event participant;

(iii) using, in paid search results, the name of an event or event participant in a manner described in Subsection (1)(b)(i) or (ii);

(iv) using on the person's website any of the following that individually or in combination is substantially similar to a primary ticket seller's, venue's, or event's website, with the intent to mislead a potential purchaser, without written authorization:

(A) text;

(B) images;

(D) website design; or

(E) Internet address.

(2) It is unlawful for a person who lists or offers a ticket for sale to:

(a) accept payment for the ticket; and

(b) fail to deliver to the consumer who purchases the ticket a ticket that reflects the transaction to which the parties agreed.

(3) It is unlawful for a person to:

(a) knowingly sell more than one copy of the same ticket;

(b) use ticket purchasing software to circumvent any portion of the process for purchasing a ticket on a ticket website, including:

(i) circumventing:

(A) security measures;

(B) identity validation measures; or

(ii) disguising the identity of a ticket purchaser for the purpose of purchasing a number of tickets that exceeds the maximum number of tickets allowed for a person to purchase.

(4) It is unlawful for a person to fail to comply with a provision of Section 13-54-201.

(5) Nothing in this section prohibits a person from including the name of an event or an event participant in a URL after the top-level domain.

§ 13-54-203 Resale refund requirements.

A primary ticket seller or reseller from which a consumer purchases a ticket shall guarantee a full refund, including handling fees, if:

(1) the event for which the primary ticket seller or reseller sold the ticket is canceled;

(2) the ticket does not grant the purchaser admission to the event;

(3) the ticket is counterfeit; or

(4) the ticket fails to conform to the description that the primary ticket seller or reseller advertised to the purchaser.

Part 3 Enforcement

§ 13-54-301 Enforcement powers.

(1) The division may enforce the provisions of this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2)

(a) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(i) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(ii) the division may bring an action in a court of competent jurisdiction to enforce the provisions of this chapter.

(b) In a court action by the division to enforce a provision of this chapter, the court may:

(i) find that an act or practice violates a provision of this chapter; and

(ii) award, for each violation of this chapter:

(A) actual damages on behalf of each consumer who complained to the division within a reasonable time after the division initiated the court action; and

(B) a fine of up to $2,500.

(i) costs, including the costs of investigation; and

(ii) reasonable attorney fees.

(3) Each ticket sold or offered for sale while a person is in violation of a provision of this chapter constitutes a separate violation of this chapter.

(4) Nothing in this chapter affects:

(a) a remedy available to a person independent of this chapter; or

(b) the division's ability or authority to enforce any other law.

Chapter 56 Ticket Transferability Act

Part 1 General Provisions

§ 13-56-101 Title.

This chapter is known as the "Ticket Transferability Act."

§ 13-56-102 Definitions.

As used in this section:

(1) "Division" means the Division of Consumer Protection in the Department of Commerce.

(2) "Event" means a single, specific occurrence of one of the following, that takes place at a venue:

(a) a concert;

(b) a game;

(d) a show; or

(e) an occasion similar to the occasions described in Subsections (2)(a) through (d).

(3) "Exempt entity" means:

(a) a Division I college postseason basketball tournament;

(b) a nonprofit organization that:

(i) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue Code;

(ii) is domiciled in the state; and

(iii) produces an annual international film festival in the state; or

(4) "Restricted ticket" means a ticket to an event that is subject to a restriction that prohibits the purchaser from reselling or otherwise transferring the ticket by any lawful method.

(5) "Transferrable ticket" means a ticket to an event that a person issues using a delivery method that enables the purchaser to lawfully resell the ticket independent of the person who issued the ticket or the person's agent or operator.

(6)

(a) "Venue" means real property located in the state where one or more persons host a concert, game, performance, show, or similar occasion.

(b) "Venue" includes an arena, a stadium, a theater, a concert hall, an amphitheater, a fairground, a club, a convention center, a public assembly facility, or a mass gathering location.

(7) "Venue operator" means a person who operates a venue.

§ 13-56-103 Scope.

(1) This chapter does not apply to an event or venue of an exempt entity.

(2) Nothing in this chapter prohibits a venue operator from maintaining and enforcing one or more policies regarding conduct or behavior at or in connection with the venue.

Part 2 Ticket Resale Restrictions

§ 13-56-201 Limitations on ticket resale restrictions -- Disclosures.

(1) Except as provided in Subsection (2), each ticket issued for an event shall be a transferrable ticket.

(2)

(a)

(i) Up to 10% of the total number of tickets issued for an event may be restricted tickets.

(ii) The total number of tickets described in Subsection (2)(a)(i):

(A) includes each ticket that provides access to the event, regardless of whether the ticket is made available for sale; and

(B) does not include a ticket that is part of a youth basketball program associated with a professional sports team where tickets are donated or issued at a reduced rate.

(b) Notwithstanding Subsection (2)(a), each calendar year, an unlimited number of restricted tickets may be issued for up to 10% of the total concert and theater events held at the same venue during the calendar year.

(3) A person who issues a restricted ticket shall provide the purchaser a clear and conspicuous written notice that states the ticket may not be resold or transferred.

(4) A person may not discriminate against an individual or deny an individual admission to an event solely because the individual:

(a) resold a ticket to the event independent of the person who issued the ticket or the person's agent or operator; or

(b) purchased a resold ticket to the event independent of the person who issued the ticket or the person's agent or operator.

Part 3 Enforcement and Reporting

§ 13-56-301 Enforcement powers -- Penalty.

(1) The division may enforce the provisions of this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2) A person who violates a provision of this chapter is subject to a fine of up to $250 per violation.

§ 13-56-302 Reporting.

(1) As used in this section, "reporting period" means:

(a) for a report submitted under this section in compliance with a July 15 deadline, January 1 through June 30 of the calendar year in which the report is submitted; or

(b) for a report submitted under this section in compliance with a January 15 deadline, July 1 through December 31 of the calendar year immediately preceding the calendar year in which the report is submitted.

(2) On or before July 15, 2020, and July 15 of each year thereafter, a venue operator shall submit a report described in Subsection (4) to the division, if there was an event scheduled at the venue during the reporting period for which a person issued one or more restricted tickets.

(3) On or before January 15, 2021, and January 15 of each year thereafter, a venue operator shall submit a report described in Subsection (4) to the division, if there was an event scheduled at the venue during the reporting period for which a person issued one or more restricted tickets.

(4) A report submitted in accordance with this section shall contain the following information:

(a) for each event scheduled at the venue during the reporting period and for which a person issued a restricted ticket:

(i) the total number of tickets issued for the event;

(ii) the number of restricted tickets issued for the event;

(iii) the date of the event; and

(iv) the type of event;

(b)

(i) for a report submitted in compliance with a July 15 deadline, the number of concert or theater events scheduled at the venue during the reporting period; or

(ii) for a report submitted in compliance with a January 15 deadline, the number of concert or theater events scheduled at the venue during the preceding calendar year; and

(c) the number of concert or theater events scheduled at the venue during the reporting period for which a person issued a restricted ticket under Subsection 13-56-201(2)(b).

Chapter 57 Maintenance Funding Practices Act

§ 13-57-601 Commercial maintenance funding prohibitions.

(1) A commercial maintenance funding provider may not enter into a commercial maintenance funding agreement directly or indirectly with a foreign entity of concern or a foreign country or person of concern.

(2) A commercial maintenance funding provider may not receive, access, or use any documents or information subject to a court order to seal or protect that the court issues in the course of the civil proceeding unless a court order specifically allows a commercial maintenance funding provider to have access to such documents or information.

(3)

(a) A commercial maintenance funding provider may not direct, or have a contractual right to control, the party or the party's attorney with respect to the conduct of the underlying legal claim or a settlement or resolution of the legal claim.

(b) The right to make the decisions Subsection (3)(a) describes remains solely with the party and the party's attorney in the civil proceeding.

Part 1 General Provisions

§ 13-57-102 Definitions.

As used in this chapter:

(1)

(a) "Commercial maintenance funding agreement" means a written agreement:

(i) whereby a third party agrees to provide funds to a named party affiliated with a legal claim; and

(ii) that creates a direct or collateralized interest in the proceeds of a legal claim by settlement, verdict, judgment, or otherwise, which interest is based in whole or in part on a funding-based obligation to a legal claim.

(b) "Commercial maintenance funding agreement" does not include:

(i) a consumer maintenance funding agreement;

(ii) an agreement between an attorney and a client for the attorney to provide legal services on a contingency-fee basis or to advance the clients legal costs;

(iii) a health insurance plan or agreement;

(iv) a repayment agreement with a financial institution if the repayment is not contingent upon the outcome of the legal claim;

(v) a funding agreement to a nonprofit organization that represents a client on a pro bono basis;

(vi) an agreement of an assigned claim to prosecute an environmental contamination matter seeking remediation of, or to recover the cost of remediating, a site that has been on the U.S. Environmental Protection Agency's Superfund National Priorities List;

(vii) an agreement between a health care provider and a patient to provide medical treatment on a lien if the repayment is not contingent on the outcome of the legal claim; or

(viii) an agreement between a third party and a party to a legal claim to provide funding for medical treatment related to a legal claim on a lien if the repayment is not contingent upon the outcome of the legal claim.

(2)

(a) "Commercial maintenance funding provider" means a person that enters into a commercial maintenance funding agreement with a party to a legal claim.

(b) "Commercial maintenance funding provider" does not include a nonprofit organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code.

(3) "Consumer" means:

(a) an individual who resides or is domiciled in the state;

(b) an individual who is a plaintiff with a legal claim in the state; or

(4)

(a) "Consumer maintenance funding agreement" means a non-recourse transaction in which a consumer maintenance funding provider purchases contingent rights to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer's legal claim, with funds paid directly to the consumer.

(b) "Consumer maintenance funding agreement" does not include:

(i) an agreement between a health care provider and a patient for providing medical treatment on a lien basis if repayment is not contingent on the outcome of the legal claim; or

(ii) an agreement between a third party and a party to a legal claim for providing funds for medical treatment related to the legal claim on a lien basis if repayment is not contingent on the outcome of the legal claim.

(5)

(a) "Consumer maintenance funding provider" means a person that enters into a consumer maintenance funding agreement with a consumer.

(b) "Consumer maintenance funding provider" does not include:

(i) an immediate family member of a consumer;

(ii) an accountant providing accounting services to a consumer;

(iii) an attorney providing legal services to a consumer; or

(iv) a bank, lender, financing entity, or other special purpose entity:

(A) that provides financing to a consumer litigation funding company; or

(B) to which a consumer litigation funding company grants a security interest or transfers a right or interest in a consumer litigation funding agreement.

(6) "Director" means the director of the division.

(7) "Division" means the Division of Consumer Protection established in Section 13-2-102.

(8) "Foreign country or person of concern" means:

(a) a foreign government or person listed in 15 C.F.R. Sec. 791.4; or

(b) an entity designated as a restricted foreign entity in accordance with Section 63L-13-101.

(9)

(a) "Foreign entity of concern" means a partnership, association, corporation, organization, or other legal entity that:

(i) is organized or incorporated in a foreign country of concern;

(ii) is owned or operated by a government, a political subdivision, or a political party of a foreign country of concern;

(iii) has a principal place of business in a foreign country of concern; or

(iv) a foreign organization owns, organizes, or controls that:

(A) is on the federal Office of Foreign Assets Control specially designated nationals and blocked persons list; or

(B) the United States Secretary of State designates as a foreign terrorist organization.

(b) "Foreign entity of concern" includes an individual that owns, has a controlling interest in, or is a director or senior officer of any entity that falls within Subsection (10)(a).

(10) "Health care provider" means the same as that term is defined in Section 78B-3-403.

(11) "Maintenance funding provider" means a consumer maintenance funding provider or a commercial maintenance funding provider.

Part 2 Maintenance Funding Providers

§ 13-57-201 Maintenance funding provider registration and registration renewal.

(1)

(a) A person may not act as a consumer maintenance funding provider in this state without registering with the division.

(b) A person who regularly engages as a commercial maintenance funding provider may not act as a commercial maintenance funding provider in this state without registering with the division.

(2) To register as a maintenance funding provider, a person shall submit to the division an application for registration:

(a) in the manner the division determines; and

(b) that includes:

(i) an application fee in an amount the division determines in accordance with Sections 13-1-2 and 63J-1-504; and

(ii) anything else the division requires as established in rule the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(3) A registration of a consumer maintenance funding provider under this chapter is effective for one year after the day on which the division issues the registration.

(4) Each year a maintenance funding provider shall renew the maintenance funding provider's registration by submitting to the division an application for registration renewal:

(a) in the manner the division determines; and

(b) that includes:

(i) an application fee in an amount determined by the division in accordance with Sections 13-1-2 and 63J-1-504; and

(ii) anything else the division requires as established in rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(5) To renew a consumer maintenance funding provider registration in accordance with this section, a consumer maintenance funding provider shall submit a registration renewal application to the division at least 30 days before the day on which the consumer maintenance funding provider's registration expires.

(6) A consumer maintenance funding provider shall update registration information within 30 days after the day on which information the consumer maintenance funding provider provides on the application becomes incorrect or incomplete.

§ 13-57-201.1 Denial, suspension, or revocation of a registration or application.

(1) the division finds that the denial, suspension, or revocation is in the public interest; and

(2)

(a) the registration is incomplete, false, or misleading; or

(b) the applicant or the applicant's principal:

(i) violates, causes a violation, allows a violation, or fails to satisfy the requirements of a provision of:

(A) this chapter; or

(B) a rule the division makes in accordance with this chapter;

(ii) violates Chapter 11, Utah Consumer Sales Practices Act; or

(iii) is enjoined by a court, or is the subject of an administrative or judicial order issued in Utah or another state, if the order:

(A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or

(B) is based on a finding of a lack of integrity, truthfulness, or mental competence;

(iv) is convicted of a crime involving theft, fraud, or dishonesty;

(v) obtains or attempts to obtain a registration by misrepresenting a material fact;

(vi) fails to provide information the division requests;

(vii) fails to pay an administrative fine the division or an administrative or judicial order imposes; or

(viii) fails to pay the fee to file a registration application or a renewal application.

§ 13-57-202 Consumer maintenance funding provider operations -- Prohibited acts.

(1) A consumer maintenance funding provider may only provide legal funding to a consumer if the consumer maintenance funding provider and the consumer enter into a consumer maintenance funding agreement that meets the requirements of Section 13-57-301.

(2) Before executing a consumer maintenance funding agreement, a consumer maintenance funding provider shall file with the division a template of the consumer maintenance funding agreement.

(3) A consumer maintenance funding provider may not:

(a) pay or offer to pay a commission, referral fee, or any other form of consideration to the following for referring a consumer to the consumer maintenance funding provider:

(i) an attorney authorized to practice law;

(ii) a health care provider; or

(iii) an employee, independent contractor, or other person affiliated with a person described in Subsection (3)(a)(i) or (ii);

(b) accept a commission, referral fee, or any other form of consideration from a person described in Subsection (3)(a) for referring a consumer to the person;

(c) refer a consumer or potential consumer to a person described in Subsection (3)(a), unless the referral is to a local or state bar association referral service;

(d) intentionally advertise materially false or misleading information about the consumer maintenance funding provider's services;

(e) make or attempt to influence a decision relating to the conduct, settlement, or resolution of a legal action for which the consumer maintenance funding provider provides legal funding;

(f) knowingly pay or offer to pay court costs, filing fees, or attorney fees using legal funding;

(g) attempt to obtain a waiver of a remedy or right from the consumer, including the right to trial by jury.

(h) represent that the division or the state endorses the consumer maintenance funding provider;

(i) omit from a filing with the division a material statement of fact that this chapter or a rule the division makes in accordance with this chapter requires; or

(j) include in a filing with the division a material statement of fact that the consumer maintenance funding provider or consumer maintenance funding provider's principal knows or should know is false, deceptive, inaccurate, or misleading.

(4) A consumer maintenance funding provider shall provide a consumer who enters a consumer maintenance funding agreement a copy of the executed consumer maintenance funding agreement.

(5) A consumer maintenance funding provider may not offer maintenance funding to a consumer who has retained, or been referred by, an attorney or law firm that has a financial interest in the consumer maintenance funding provider.

(6) A consumer maintenance funding provider may not enter into a consumer maintenance funding agreement directly or indirectly with a foreign entity of concern or a foreign country or person of concern.

§ 13-57-203 Annual reports.

(1) On or before April 1 of each year, a maintenance funding provider registered in accordance with Section 13-57-201 shall file a report:

(a) that includes an unsworn declaration that the consumer maintenance funding provider's chief financial officer or the consumer maintenance funding provider's principal makes in accordance with Title 78B, Chapter 18a, Uniform Unsworn Declarations Act, confirming the report's accuracy;

(b) with the division; and

(2) The report described in Subsection (1) shall include, for the preceding calendar year:

(a) the number of consumer maintenance funding agreements and commercial maintenance funding agreements entered into by the maintenance funding provider;

(b) the total dollar amount of funding the maintenance funding provider provided;

(c) the total dollar amount of charges under each consumer maintenance funding agreement and each commercial maintenance funding agreement, itemized and including the annual rate of return;

(d) the total dollar amount and number of funding transactions in which the realized profit to the maintenance funding provider was as contracted;

(e) the total dollar amount and number of funding transactions in which the realized profit to the maintenance funding provider was less than contracted; and

(f) any other information the director requires concerning the maintenance funding provider's business or operations in the state.

Part 3 Maintenance Funding Agreements

§ 13-57-301 Consumer maintenance funding agreements.

(1) A consumer maintenance funding agreement shall:

(a) be in writing;

(b) be written in a clear and coherent manner using words with common, everyday meanings so that the average consumer, who makes a reasonable effort under ordinary circumstances, can read and understand the terms of the consumer maintenance funding agreement without requiring the assistance of a professional;

(d) contain a right of rescission permitting the consumer to cancel the consumer maintenance funding agreement without penalty or further obligation, if the consumer returns to the consumer maintenance funding provider the full amount of the disbursed funds:

(i) within 10 business days after the day on which the consumer and consumer maintenance funding provider enter the agreement; and

(ii)

(A) in person by delivering the consumer maintenance funding provider's uncashed check to the consumer maintenance funding provider's office; or

(B) by insured, certified, or registered United States mail to the address specified in the consumer maintenance funding agreement in the form of the consumer maintenance funding provider's uncashed check or a registered or certified check or money order;

(e) contain the disclosures described in Section 13-57-302;

(f) include the amount of money the consumer maintenance funding provider provides to the consumer;

(g) include an itemization of one-time charges;

(h) include a payment schedule that:

(i) includes the funded amount and all charges; and

(ii) lists the total amount of any realized settlement, judgment, award, or verdict to be paid to the consumer maintenance funding provider at the end of each six-month period, if the consumer maintenance funding agreement is satisfied during that period;

(i) include a provision that the consumer maintenance funding agreement includes no charge or fee other than the charges and fees disclosed in the agreement;

(j) include a provision that:

(i) if there are no available proceeds from the legal action, the consumer will owe the consumer maintenance funding provider nothing; and

(ii) the consumer maintenance funding provider's total charges will be paid only to the extent there are available proceeds from the legal action after the settlement of all liens, fees, and other costs; and

(k) if the consumer seeks more than one consumer maintenance funding agreement from the same company, a disclosure providing the cumulative amount due from the consumer for all transactions, including charges under all consumer maintenance funding agreements, if repayment is made any time after the consumer maintenance funding agreements are executed.

(2) A consumer maintenance funding agreement may not require a consumer to make a payment to the consumer maintenance funding provider in an amount determined as a percentage of the recovery from the legal action.

(3) A consumer maintenance funding agreement is not valid unless the agreement includes a written certification signed by the consumer stating that:

(a) the consumer, with the consumer's attorney, reviewed the mandatory disclosures in Section 13-57-302;

(b) the consumer is represented by an attorney in the legal claim on a contingency fee basis in accordance with a written fee agreement;

(c) the consumer will direct the consumer's attorney to receive and disburse all proceeds of the legal claim through the attorney's trust account or a settlement fund established for the benefit of the consumer; and

(d) the consumer will direct the consumer's attorney to disburse funds in accordance with the terms of the consumer maintenance funding agreement.

(4)

(a) The consumer maintenance funding agreement is null and void if the consumer does not provide the acknowledgment Subsection (3) requires.

(b) The consumer maintenance funding agreement remains valid and enforceable if the consumer terminates an attorney or law firm that the consumer retains.

(5) A consumer maintenance funding provider may not charge or collect a prepayment penalty or fee.

§ 13-57-302 Required disclosures.

A consumer maintenance funding provider shall disclose in a consumer maintenance funding agreement:

(1) that the consumer maintenance funding provider may not participate in deciding whether, when, or the amount for which a legal action is settled;

(2) that the maintenance funding provider may not interfere with the independent professional judgment of the attorney handling the legal action or any settlement of the legal action;

(3) the following statement in substantially the following form, in all capital letters and at least a 12-point font: "THE FUNDED AMOUNT AND AGREED-TO CHARGES SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM, AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT OWE (INSERT NAME OF THE CONSUMER MAINTENANCE FUNDING PROVIDER HERE) ANYTHING IF THERE ARE NO PROCEEDS FROM YOUR LEGAL CLAIM, UNLESS YOU HAVE VIOLATED A MATERIAL TERM OF THIS AGREEMENT OR YOU HAVE COMMITTED FRAUD AGAINST THE CONSUMER MAINTENANCE FUNDING PROVIDER.";

(4) in accordance with Section 13-57-301, the following statement in substantially the following form and at least a 12-point font: "CONSUMER'S RIGHT TO CANCELLATION: You may cancel this agreement without penalty or further obligation within 10 business days after the day on which you enter into this agreement with the consumer maintenance funding provider if you either: 1. return to the consumer maintenance funding provider the full amount of the disbursed funds by delivering the consumer maintenance funding provider's uncashed check to the consumer maintenance funding provider's office in person; or 2. send, by insured, certified, or registered United States mail, to the consumer maintenance funding provider at the address specified in this agreement, a notice of cancellation and include in the mailing a return of the full amount of disbursed funds in the form of the consumer maintenance funding provider's uncashed check or a registered or certified check or money order"; and

(5) immediately above the line for the consumer's signature, the following statement in at least a 12-point font: "Do not sign this agreement before you read it completely or if it contains any blank spaces. You are entitled to a completed copy of the agreement. Before you sign this agreement, you should obtain the advice of an attorney. Depending on your circumstances, you may want to consult a tax, benefits planning, or financial professional."

Part 4 Division Duties

§ 13-57-401 Rulemaking.

The division shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to:

(1) establish an application process for a person to register with the division as a maintenance funding provider, in accordance with Section 13-57-201;

(2) establish a filing process for a maintenance funding provider to file a maintenance funding agreement with the division;

(3) establish a filing process for annual reports required under Section 13-57-203; and

(4) carry out the provisions of this chapter.

§ 13-57-402 Public education regarding legal funding -- Reporting to Legislature.

The director shall help educate the general public regarding legal funding in the state by:

(1) analyzing and summarizing data maintenance funding providers submit under Section 13-57-203; and

(2) publishing the analysis and summary described in Subsection (1) on the division's web page on January 1, of each odd-numbered year.

Part 5 Miscellaneous

§ 13-57-501 Enforceability.

If a maintenance funding provider willfully violates a provision of this chapter, a maintenance funding agreement associated with the violation is unenforceable by the maintenance funding provider or any successor-in-interest to the maintenance funding agreement.

§ 13-57-502 Penalties -- Enforcement.

(1) The division shall administer and enforce the provisions of this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(a) the division director may impose an administrative fine of up to $2,500 for a violation of this chapter; and

(b) the division may bring an action in a court with jurisdiction to enforce a provision of this chapter.

(3) In an action the division brings in accordance with Subsection (2)(b), a court may:

(a) declare that an act or practice violates a provision of this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured purchaser or consumer;

(e) impose a fine of up to $2,500 for a violation of this chapter; or

(f) award any other relief that the court deems reasonable and necessary.

(4) The division's enforcement powers under this section and Section 13-2-107 do not affect an individual's legal claim against a maintenance funding provider.

§ 13-57-503 Applicability.

The requirements of this chapter for a maintenance funding provider do not apply to:

(1) a bank while in the course of conducting a banking business as described in Section 7-3-1;

(2) a deferred deposit lender, as defined in Section 7-23-102, while engaged in the business of deferred deposit lending;

(3) a title lender, as defined in Section 7-24-102, while engaged in the business of extending a title loan; or

(4) a creditor, as defined in Section 70C-1-302, subject to the provisions of Title 70C, Utah Consumer Credit Code.

§ 13-57-504 Assignability -- Liens.

(1) The contingent right to receive an amount of the potential proceeds of a legal claim is assignable by a party to a maintenance funding provider.

(2) Only attorney's liens related to the legal claim that is the subject of the maintenance funding or Medicare or other statutory liens related to the legal claim take priority over a lien of the maintenance funding provider.

Chapter 58 Motorboat Agreements Act

Part 1 General Provisions

§ 13-58-101 Title.

This chapter is known as the "Motorboat Agreements Act."

§ 13-58-102 Definitions.

As used in this chapter:

(1) "Agreement" means an agreement between:

(a) a motorboat dealer; and

(b)

(i) a manufacturer; or

(ii) a distributor.

(2) "Distributor" means a person who:

(a) has an agreement with a manufacturer of motorboats to distribute motorboats within this state; and

(b) in whole or in part sells or distributes motorboats to motorboat dealers.

(3) "Manufacturer" means a person engaged in the business of constructing, manufacturing, assembling, producing, or importing new motorboats for the purpose of sale or trade.

(4) "Motorboat" means the same as that term is defined in Section 73-18-2.

(5) "Motorboat dealer" means a person who:

(a) is engaged in the business of buying, selling, offering for sale, or exchanging new motorboats either outright or on conditional sale, bailment, lease, chattel mortgage, or otherwise; and

(b) has established in this state a place of business for the sale, lease, trade, or display of new motorboats.

Part 2 Agreements

§ 13-58-201 Agreement requirement -- Terms of agreements.

(1) A person may not act as a motorboat dealer in this state without entering into an agreement.

(2) An agreement shall include:

(a) each working capital standard, inventory standard, facility standard, equipment standard, and tool standard, if any, including each agreed upon minimum product stocking requirement;

(b) provisions for termination or nonrenewal of the agreement;

(d) the obligations of the manufacturer, distributor, and motorboat dealer in the preparation and delivery of, and warranty service on, new motorboats and new motorboat motors;

(e) the obligations of the manufacturer, distributor, and new motorboat dealer upon termination of the agreement, including obligations in relation to:

(i) inventory of new motorboats;

(ii) inventory of new motorboat motors;

(iii) inventory of parts;

(iv) equipment;

(v) furnishings;

(vi) special tools; and

(vii) required signs;

(f) each standard for maintenance of:

(i) a dedicated or self-funded line of credit, if any; and

(ii) a trade-in line of credit or self-funded trade-in line of credit, if any; and

(g) dispute resolution procedures.

Part 3 Default

§ 13-58-301 Motorboat dealer default.

A motorboat dealer defaults on an agreement if the motorboat dealer:

(1) materially fails to:

(a) meet minimum product stocking requirements as specified under the agreement;

(b) make timely payment of a material obligation as specified under the agreement; or

(i) a dedicated or self-funded line of credit; or

(ii) a trade-in or self-funded trade-in line of credit; or

(2) markets the manufacturer's motorboats outside of the motorboat dealer's territory in violation of the agreement.

§ 13-58-302 Cure of default.

(1) If a motorboat dealer defaults as described in Section 13-58-301, the manufacturer or distributor who is part of the agreement shall:

(a) give the dealer written notice of the dealer's default; and

(b) allow the dealer to cure the default within the period described in Subsection (2).

(2) A motorboat dealer may cure a default no later than:

(a) 30 days after the day on which the dealer receives the notice described in Subsection (1), if the dealer defaulted as described in Subsection 13-58-301(1)(b) or (2);

(b) 60 days after the day on which the dealer receives the notice described in Subsection (1), if the dealer defaulted as described in Subsection 13-58-301(1)(a); and

(c) 160 days after the day on which the dealer receives the notice described in Subsection (1), if the dealer defaulted as described in Subsection 13-58-301(1)(c).

Part 4 Termination or Nonrenewal of Agreements

§ 13-58-401 Termination or nonrenewal of agreement -- Notice -- Repurchase obligations.

(1) Except as provided in Section 13-58-402, a manufacturer or distributor may not terminate or fail to renew an agreement with a motorboat dealer unless:

(a) the motorboat dealer defaults as described in Section 13-58-301;

(b) the manufacturer or distributor gives the motorboat dealer written notice as described in Section 13-58-302 that clearly and concisely states:

(i) the default; and

(ii) that if the dealer fails to cure the default, the manufacturer or distributor may terminate the agreement;

(c) the manufacturer or distributor provides the motorboat dealer the applicable period to cure the default as described in Subsection 13-58-302(2); and

(d) the motorboat dealer fails to cure the default during the applicable period described in Subsection 13-58-302(2).

(2) If an agreement is terminated or not renewed in violation of this section, the manufacturer shall pay to the motorboat dealer:

(a) an amount that equals:

(i) the dealer's cost of each new, undamaged, unsold, and unregistered motorboat, motorboat motor, and trailer in the dealer's inventory that the dealer:

(A) acquired from the manufacturer or from another dealer; and

(B) invoiced during the 24-month period immediately before the day on which the agreement terminates or is not renewed; minus

(ii) each applicable dealer rebate and discount;

(b) for each charge the manufacturer made for distribution, delivery, or taxes;

(d) an amount that equals:

(i) the cost of all new, undamaged, and unsold supplies, parts, and accessories, as advertised in the manufacturer's catalog or website on the day on which the agreement terminates or is not renewed; minus

(ii) all allowance the manufacturer paid or credited to the dealer;

(e) an amount that equals the greater of the fair market value for or the dealer's depreciated acquisition cost of a sign, if:

(i) the manufacturer required or recommended the dealer to acquire the sign;

(ii) the sign bears the manufacturer's name, trade name, or trademark;

(iii) the sign is undamaged; and

(iv) the dealer owns the sign;

(f) an amount that equals the greater of the fair market value for or the dealer's depreciated acquisition cost of all special tools, equipment, and furnishings:

(i) acquired from the manufacturer or a source the manufacturer approved;

(ii) that the manufacturer required the dealer to acquire; and

(iii) that are in good and usable condition; and

(g) the cost of transporting, handling, packing, and loading all motorboats, motorboat motors, trailers, supplies, parts, accessories, signs, special tools, equipment, and furnishings.

(3) A manufacturer shall pay a motorboat dealer the amounts described in Subsection (2) within 90 days after the day on which the tender of the property to the manufacturer occurs, if the dealer has:

(a) clear title to the property; or

(b) the manufacturer's statement of origin.

(4) If an item described in Subsection (2) is subject to a security interest, the manufacturer may make payment jointly to:

(a) the motorboat dealer; and

(b) the holder of the security interest.

§ 13-58-402 Termination without time to cure.

A manufacturer or distributor may terminate an agreement with a motorboat dealer upon written notice and without a cure period described in Section 13-58-302, if:

(1) the motorboat dealer:

(a) financially defaults to the manufacturer, the distributor, or a financing source;

(b) becomes subject to an order for relief, as defined in 11 U.S.C. Sec. 102;

(d) has had an involuntary petition in bankruptcy filed against the motorboat dealer;

(e) engages in an act of material fraud in relation to the performance of a right or obligation under the agreement;

(f) is a corporation that ceases to exist;

(g) becomes insolvent;

(h) takes or fails to take an action that constitutes an admission of inability to pay debts as the debts mature;

(i) makes a general assignment for the benefit of creditors to an agent authorized to liquidate any substantial amount of assets;

(j) applies to a court for the appointment of a receiver for any assets or properties;

(k) fails to substantially comply with a federal, state, or local law, rule, regulation, ordinance, or order applicable to the agreement;

(l) receives three valid notices of a default under Section 13-58-302 for the same default within a 12-month period, regardless of whether the dealer cures the default;

(m) transfers an interest in the dealership without the manufacturer's written consent;

(n) has pleaded guilty to or has been convicted of a felony, or of any misdemeanor relating to the relationship between the motorboat dealer and manufacturer;

(o) or one of the owners of the motorboat dealer is convicted or enters a plea of nolo contendere to a felony; or

(p) makes a material misrepresentation;

(2) there is a closeout or sale of a substantial part of the dealer's assets related to the motorboat dealership;

(3) there is a commencement or dissolution or liquidation of the motorboat dealership;

(4) there is a change without the prior written approval of the manufacturer in the location of the motorboat dealer's principal place of business under the dealership agreement; or

(5) the motorboat dealer's license is suspended, revoked, or is not renewed.

Chapter 59 Health Care Consumer Protection Act

Part 1 General Provisions

§ 13-59-101 Title.

This chapter is known as the "Health Care Consumer Protection Act."

§ 13-59-102 Definitions.

As used in this chapter:

(1) "Enrollee" means the same as that term is defined in Section 31A-1-301.

(2) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.

(3) "Health care provider" means a person licensed to provide health care under:

(a) Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection; or

(b) Title 58, Occupations and Professions.

Part 2 Consumer Protection Violations

§ 13-59-201 Misrepresentation of health insurance coverage.

(1) A health care provider or a health care provider's representative may not represent to an enrollee that the health care provider is a contracted provider under the enrollee's health benefit plan if the health care provider is not a contracted provider under the enrollee's health benefit plan.

(2) A knowing or intentional violation of Subsection (1) is a deceptive act or practice under Section 13-11-4.

Chapter 60 Genetic Information Privacy Act

Part 1 Genetic Information Privacy Act

§ 13-60-101 Title.

This chapter is known as the "Genetic Information Privacy Act."

§ 13-60-102 Definitions.

As used in this part:

(1) "Biological sample" means any human material known to contain DNA, including tissue, blood, urine, or saliva.

(2) "Consumer" means an individual who is a resident of the state.

(3) "Deidentified data" means data that:

(a) cannot reasonably be linked to an identifiable individual; and

(b) possessed by a company that:

(i) takes administrative and technical measures to ensure that the data cannot be associated with a particular consumer;

(ii) makes a public commitment to maintain and use data in deidentified form and not attempt to reidentify data; and

(iii) enters into legally enforceable contractual obligation that prohibits a recipient of the data from attempting to reidentify the data.

(4) "Direct-to-consumer genetic testing company" or "company" means an entity that:

(a) offers consumer genetic testing products or services directly to consumers; or

(b) collects, uses, or analyzes genetic data that a consumer provides to the entity.

(5) "DNA" means deoxyribonucleic acid.

(6) "Express consent" means a consumer's affirmative response to a clear, meaningful, and prominent notice regarding the collection, use, or disclosure of genetic data for a specific purpose.

(7)

(a) "Genetic data" means any data, regardless of format, concerning a consumer's genetic characteristics.

(b) "Genetic data" includes:

(i) raw sequence data that result from sequencing all or a portion of a consumer's extracted DNA;

(ii) genotypic and phenotypic information obtained from analyzing a consumer's raw sequence data; and

(iii) self-reported health information regarding a consumer's health conditions that the consumer provides to a company that the company:

(A) uses for scientific research or product development; and

(B) analyzes in connection with the consumer's raw sequence data.

(8) "Genetic testing" means:

(a) a laboratory test of a consumer's complete DNA, regions of DNA, chromosomes, genes, or gene products to determine the presence of genetic characteristics of the consumer; or

(b) an interpretation of a consumer's genetic data.

§ 13-60-103 Limitations.

This part does not apply to:

(1) protected health information that is collected by a covered entity or business associate as those terms are defined in 45 C.F.R. Parts 160 and 164;

(2) a public or private institution of higher education; or

(3) an entity owned or operated by a public or private institution of higher education.

§ 13-60-104 Consumer genetic information -- Privacy notice -- Consent -- Access -- Deletion -- Destruction.

(1) A direct-to-consumer genetic testing company shall:

(a) provide to a consumer:

(i) essential information about the company's collection, use, and disclosure of genetic data; and

(ii) a prominent, publicly available privacy notice that includes information about the company's data collection, consent, use, access, disclosure, transfer, security, retention, and deletion practices;

(b) obtain a consumer's initial express consent for collection, use, or disclosure of the consumer's genetic data that:

(i) clearly describes the company's use of the genetic data that the company collects through the company's genetic testing product or service;

(ii) specifies who has access to test results; and

(iii) specifies how the company may share the genetic data;

(i) separate express consent for:

(A) the transfer or disclosure of the consumer's genetic data to any person other than the company's vendors and service providers;

(B) the use of genetic data beyond the primary purpose of the company's genetic testing product or service; or

(C) the company's retention of any biological sample provided by the consumer following the company's completion of the initial testing service requested by the consumer;

(ii) informed consent in accordance with the Federal Policy for the Protection of Human Subjects, 45 C.F.R. Part 46, for transfer or disclosure of the consumer's genetic data to a third party for:

(A) research purposes; or

(B) research conducted under the control of the company for the purpose of publication or generalizable knowledge; and

(iii) express consent for:

(A) marketing to a consumer based on the consumer's genetic data; or

(B) marketing by a third party person to a consumer based on the consumer having ordered or purchased a genetic testing product or service;

(d) require valid legal process for the company's disclosure of a consumer's genetic data to law enforcement or any government entity without the consumer's express written consent;

(e) develop, implement, and maintain a comprehensive security program to protect a consumer's genetic data against unauthorized access, use, or disclosure; and

(f) provide a process for a consumer to:

(i) access the consumer's genetic data;

(ii) delete the consumer's account and genetic data; and

(iii) destroy the consumer's biological sample.

(2) Notwithstanding Subsection (1)(c)(iii), a direct-to-consumer genetic testing company with a first-party relationship to a consumer may, without obtaining the consumer's express consent, provide customized content or offers on the company's website or through the company's application or service.

§ 13-60-105 Prohibited disclosures.

A direct-to-consumer genetic testing company may not disclose a consumer's genetic data without the consumer's written consent to:

(1) an entity that offers health insurance, life insurance, or long-term care insurance; or

(2) an employer of the consumer.

§ 13-60-106 Enforcement powers of the attorney general.

(1) The attorney general may enforce this part.

(2) The attorney general may initiate a civil enforcement action against a person for violating this part.

(3) In an action to enforce this part, the attorney general may recover:

(a) actual damages to the consumer;

(b) costs;

(d) $2,500 for each violation of this part.

Part 2 Genetic Testing and Procedure Privacy Act

§ 13-60-203 Definitions.

As used in this part:

(1) "Blood relative" means an individual's biologically related:

(a) parent;

(b) grandparent;

(d) grandchild;

(e) sibling;

(f) uncle;

(g) aunt;

(h) nephew;

(i) niece; or

(j) first cousin.

(2) "DNA" means:

(a) deoxyribonucleic acid, ribonucleic acid, and chromosomes, which may be analyzed to detect heritable diseases or conditions, including the identification of carriers, predicting risk of disease, or establishing a clinical diagnosis; or

(b) proteins, enzymes, or other molecules associated with a genetic process, which may be modified, replaced in part or whole, superseded, or bypassed in function by a health or medical procedure.

(3) "DNA sample" means any human biological specimen from which DNA can be extracted, or DNA extracted from such specimen.

(4) "Employer" means the same as that term is defined in Section 34A-2-103.

(5)

(a) "Genetic analysis" or "genetic test" means the testing, detection, or analysis of an identifiable individual's DNA that results in information that is derived from the presence, absence, alteration, or mutation of an inherited gene or genes, or the presence or absence of a specific DNA marker or markers.

(b) "Genetic analysis" or "genetic test" does not mean:

(i) a routine physical examination;

(ii) a routine chemical, blood, or urine analysis;

(iii) a test to identify the presence of drugs or HIV infection; or

(iv) a test performed due to the presence of signs, symptoms, or other manifestations of a disease, illness, impairment, or other disorder.

(6) "Genetic procedure" means any therapy, treatment, or medical procedure that is intended to:

(a) add, remove, alter, activate, change, or cause mutation in an individual's inherited DNA; or

(b) replace, supersede, or bypass a normal DNA function.

(7) "Health care insurance" means the same as that term is defined in Section 31A-1-301.

(8)

(a) "Private genetic information" means any information about an identifiable individual that:

(i) is derived from:

(A) the presence, absence, alteration, or mutation of an inherited gene or genes; or

(B) the presence or absence of a specific DNA marker or markers; and

(ii) has been obtained:

(A) from a genetic test or analysis of the individual's DNA;

(B) from a genetic test or analysis of the DNA of a blood relative of the individual; or

(b) "Private genetic information" does not include information that is derived from:

(i) a routine physical examination;

(ii) a routine chemical, blood, or urine analysis;

(iii) a test to identify the presence of drugs or HIV infection; or

(iv) a test performed due to the presence of signs, symptoms, or other manifestations of a disease, illness, impairment, or other disorder.

§ 13-60-204 Restrictions on employers.

(1) Except as provided in Subsection (2), an employer may not in connection with a hiring, promotion, retention, or other related decision:

(a) access or otherwise take into consideration private genetic information about an individual;

(b) request or require an individual to consent to a release for the purpose of accessing private genetic information about the individual;

(i) a genetic test; or

(ii) a genetic procedure; or

(d) inquire into or otherwise take into consideration the fact that an individual or the individual's blood relative has:

(i) taken or refused to take a genetic test; or

(ii) undergone or refused to undergo a genetic procedure.

(2)

(a) Notwithstanding Subsection (1), an employer may seek an order compelling the disclosure of private genetic information held by an individual or third party pursuant to Subsection (2)(b) in connection with:

(i) an employment-related judicial or administrative proceeding in which the individual has placed his health at issue; or

(ii) an employment-related decision in which the employer has a reasonable basis to believe that the individual's health condition poses a real and unjustifiable safety risk requiring the change or denial of an assignment.

(b)

(i) An order compelling the disclosure of private genetic information pursuant to this Subsection (2) may only be entered upon a finding that:

(A) other ways of obtaining the private information are not available or would not be effective; and

(B) there is a compelling need for the private genetic information which substantially outweighs the potential harm to the privacy interests of the individual.

(ii) An order compelling the disclosure of private genetic information pursuant to this Subsection (2) shall:

(A) limit disclosure to those parts of the record containing information essential to fulfill the objective of the order;

(B) limit disclosure to those persons whose need for the information is the basis of the order; and

§ 13-60-205 Restrictions on health insurers.

(1) Except as provided in Subsection (2), an insurer offering health care insurance may not in connection with the offer or renewal of an insurance product or in the determination of premiums, coverage, renewal, cancellation, or any other underwriting decision that pertains directly to the individual or any group of which the individual is a member that purchases insurance jointly:

(a) access or otherwise take into consideration private genetic information about an asymptomatic individual;

(b) request or require an asymptomatic individual to consent to a release for the purpose of accessing private genetic information about the individual;

(d) inquire into or otherwise take into consideration the fact that an asymptomatic individual or the individual's blood relative has taken or refused to take a genetic test;

(e) request or require an individual or the individual's blood relative to submit to a genetic procedure; or

(f) inquire into the results of a genetic procedure that an individual or the individual's blood relative undergoes.

(2) An insurer offering health care insurance:

(a) may request information regarding the necessity of a genetic test, but not the results of the test, if a claim for payment for the test has been made against an individual's health insurance policy;

(b) may request information regarding the necessity of a genetic procedure, including the results of the procedure, if a claim for payment for the procedure has been made against an individual's health insurance policy;

(c) may request that portion of private genetic information that is necessary to determine the insurer's obligation to pay for health care services where:

(i) the primary basis for rendering such services to an individual is the result of a genetic test; and

(ii) a claim for payment for such services has been made against the individual's health insurance policy;

(d) may only store information obtained under this Subsection (2) in accordance with the provisions of the Health Insurance Portability and Accountability Act of 1996; and

(e) may only use or otherwise disclose the information obtained under this Subsection (2) in connection with a proceeding to determine the obligation of an insurer to pay for a genetic test or health care services, provided that, in accordance with the provisions of the Health Insurance Portability and Accountability Act of 1996, the insurer makes a reasonable effort to limit disclosure to the minimum necessary to carry out the purposes of the disclosure.

(3)

(a) An insurer may, to the extent permitted by Subsection (2), seek an order compelling the disclosure of private genetic information held by an individual or third party.

(b) An order authorizing the disclosure of private genetic information pursuant to this Subsection (2) shall:

(i) limit disclosure to those parts of the record containing information essential to fulfill the objectives of the order;

(ii) limit disclosure to those persons whose need for the information is the basis for the order; and

(iii) include such other measures as may be necessary to limit disclosure for the protection of the individual.

(4) Nothing in this section may be construed as restricting the ability of an insurer to use information other than private genetic information to take into account the health status of an individual, group, or population in determining premiums or making other underwriting decisions.

(5) Nothing in this section may be construed as:

(a) requiring an insurer to pay for genetic testing or a genetic procedure; or

(b) prohibiting the use of step-therapy protocols.

(6) Information maintained by an insurer about an individual under this section may be redisclosed:

(a) to protect the interests of the insurer in detecting, prosecuting, or taking legal action against criminal activity, fraud, material misrepresentations, and material omissions;

(b) to enable business decisions to be made about the purchase, transfer, merger, reinsurance, or sale of all or part of the insurer's business; and

§ 13-60-206 Private right of action.

(1)

(a) An individual whose legal rights arising under this part have been violated after June 30, 2003, may recover damages and be granted equitable relief in a civil action.

(b) Subsection (1)(a) does not create a legal right prior to the Legislature enacting the right under this part.

(2) Any insurance company or employer who violates the legal rights of an individual arising from this part shall be liable to the individual for each separate violation in an amount equal to:

(a) actual damages sustained as a result of the violation;

(b)

(i) $100,000 if the violation is the result of an intentional and willful act; or

(ii) punitive damages if the violation is the result of a malicious act; and

§ 13-60-207 Enforcement.

(1) Whenever the attorney general has reason to believe that any person is using or is about to use any method, act, or practice in violation of the provisions of this part, and that proceedings would be in the public interest, the attorney general may bring an action against the person to restrain or enjoin the use of such method, act, or practice.

(2) In addition to restraining or enjoining the use of a method, act, or practice, the court may, after June 30, 2003, require the payment of:

(a) a civil fine of not more than $25,000 for each separate intentional violation; and

(b) reasonable costs of investigation and litigation, including reasonable attorneys' fees.

Chapter 61 Utah Consumer Privacy Act

Part 1 General Provisions

§ 13-61-101 Definitions.

As used in this chapter:

(1) "Account" means the Consumer Privacy Restricted Account established in Section 13-61-403.

(2) "Affiliate" means an entity that:

(a) controls, is controlled by, or is under common control with another entity; or

(b) shares common branding with another entity.

(3) "Aggregated data" means information that relates to a group or category of consumers:

(a) from which individual consumer identities have been removed; and

(b) that is not linked or reasonably linkable to any consumer.

(4) "Air carrier" means the same as that term is defined in 49 U.S.C. Sec. 40102.

(5) "Authenticate" means to use reasonable means to determine that a consumer's request to exercise the rights described in Section 13-61-201 is made by the consumer who is entitled to exercise those rights.

(6)

(a) "Biometric data" means data generated by automatic measurements of an individual's unique biological characteristics.

(b) "Biometric data" includes data described in Subsection (6)(a) that are generated by automatic measurements of an individual's fingerprint, voiceprint, eye retinas, irises, or any other unique biological pattern or characteristic that is used to identify a specific individual.

(i) a physical or digital photograph;

(ii) a video or audio recording;

(iii) data generated from an item described in Subsection (6)(c)(i) or (ii);

(iv) information captured from a patient in a health care setting; or

(v) information collected, used, or stored for treatment, payment, or health care operations as those terms are defined in 45 C.F.R. Parts 160, 162, and 164.

(7) "Business associate" means the same as that term is defined in 45 C.F.R. Sec. 160.103.

(8) "Child" means an individual younger than 13 years old.

(9) "Consent" means an affirmative act by a consumer that unambiguously indicates the consumer's voluntary and informed agreement to allow a person to process personal data related to the consumer.

(10)

(a) "Consumer" means an individual who is a resident of the state acting in an individual or household context.

(b) "Consumer" does not include an individual acting in an employment or commercial context.

(11) "Control" or "controlled" as used in Subsection (2) means:

(a) ownership of, or the power to vote, more than 50% of the outstanding shares of any class of voting securities of an entity;

(b) control in any manner over the election of a majority of the directors or of the individuals exercising similar functions; or

(12) "Controller" means a person doing business in the state who determines the purposes for which and the means by which personal data are processed, regardless of whether the person makes the determination alone or with others.

(13) "Covered entity" means the same as that term is defined in 45 C.F.R. Sec. 160.103.

(14)

(a) "Deidentified data" means data that:

(i) cannot reasonably be linked to an identified individual or an identifiable individual; and

(ii) are possessed by a controller who:

(A) takes reasonable measures to ensure that a person cannot associate the data with an individual;

(B) publicly commits to maintain and use the data only in deidentified form and not attempt to reidentify the data; and

(C) contractually obligates any recipients of the data to comply with the requirements described in Subsections (14)(a)(ii)(A) and (B).

(b) "Deidentified data" includes synthetic data.

(15) "Director" means the director of the Division of Consumer Protection.

(16) "Division" means the Division of Consumer Protection created in Section 13-2-102.

(17) "Governmental entity" means the same as that term is defined in Section 63G-2-103.

(18) "Health care facility" means the same as that term is defined in Section 26B-2-201.

(19) "Health care provider" means the same as that term is defined in Section 78B-3-403.

(20) "Identifiable individual" means an individual who can be readily identified, directly or indirectly.

(21) "Institution of higher education" means a public or private institution of higher education.

(22) "Local political subdivision" means the same as that term is defined in Section 11-14-102.

(23) "Nonprofit corporation" means:

(a) the same as that term is defined in Section 16-6a-102; or

(b) a foreign nonprofit corporation as defined in Section 16-6a-102.

(24)

(a) "Personal data" means information that is linked or reasonably linkable to an identified individual or an identifiable individual.

(b) "Personal data" does not include deidentified data, aggregated data, or publicly available information.

(25) "Process" means an operation or set of operations performed on personal data, including collection, use, storage, disclosure, analysis, deletion, or modification of personal data.

(26) "Processor" means a person who processes personal data on behalf of a controller.

(27) "Protected health information" means the same as that term is defined in 45 C.F.R. Sec. 160.103.

(28) "Pseudonymous data" means personal data that cannot be attributed to a specific individual without the use of additional information, if the additional information is:

(a) kept separate from the consumer's personal data; and

(b) subject to appropriate technical and organizational measures to ensure that the personal data are not attributable to an identified individual or an identifiable individual.

(29) "Publicly available information" means information that a person:

(a) lawfully obtains from a record of a governmental entity;

(b) reasonably believes a consumer or widely distributed media has lawfully made available to the general public; or

(c) if the consumer has not restricted the information to a specific audience, obtains from a person to whom the consumer disclosed the information.

(30) "Right" means a consumer right described in Section 13-61-201.

(31)

(a) "Sale," "sell," or "sold" means the exchange of personal data for monetary consideration by a controller to a third party.

(b) "Sale," "sell," or "sold" does not include:

(i) a controller's disclosure of personal data to a processor who processes the personal data on behalf of the controller;

(ii) a controller's disclosure of personal data to an affiliate of the controller;

(iii) considering the context in which the consumer provided the personal data to the controller, a controller's disclosure of personal data to a third party if the purpose is consistent with a consumer's reasonable expectations;

(iv) the disclosure or transfer of personal data when a consumer directs a controller to:

(A) disclose the personal data; or

(B) interact with one or more third parties;

(v) a consumer's disclosure of personal data to a third party for the purpose of providing a product or service requested by the consumer or a parent or legal guardian of a child;

(vi) the disclosure of information that the consumer:

(A) intentionally makes available to the general public via a channel of mass media; and

(B) does not restrict to a specific audience; or

(vii) a controller's transfer of personal data to a third party as an asset that is part of a proposed or actual merger, an acquisition, or a bankruptcy in which the third party assumes control of all or part of the controller's assets.

(32)

(a) "Sensitive data" means:

(i) personal data that reveals:

(A) an individual's racial or ethnic origin;

(B) an individual's religious beliefs;

(D) an individual's citizenship or immigration status; or

(E) information regarding an individual's medical history, mental or physical health condition, or medical treatment or diagnosis by a health care professional;

(ii) the processing of genetic personal data or biometric data, if the processing is for the purpose of identifying a specific individual; or

(iii) specific geolocation data.

(b) "Sensitive data" does not include personal data that reveals an individual's:

(i) racial or ethnic origin, if the personal data are processed by a video communication service; or

(ii) if the personal data are processed by a person licensed to provide health care under Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection, or Title 58, Occupations and Professions, information regarding an individual's medical history, mental or physical health condition, or medical treatment or diagnosis by a health care professional.

(33)

(a) "Specific geolocation data" means information derived from technology, including global position system level latitude and longitude coordinates, that directly identifies an individual's specific location, accurate within a radius of 1,750 feet or less.

(b) "Specific geolocation data" does not include:

(i) the content of a communication; or

(ii) any data generated by or connected to advanced utility metering infrastructure systems or equipment for use by a utility.

(34) "Synthetic data" means data that has been generated by computer algorithms or statistical models and does not contain personal data.

(35)

(a) "Targeted advertising" means displaying an advertisement to a consumer where the advertisement is selected based on personal data obtained from the consumer's activities over time and across nonaffiliated websites or online applications to predict the consumer's preferences or interests.

(b) "Targeted advertising" does not include advertising:

(i) based on a consumer's activities within a controller's website or online application or any affiliated website or online application;

(ii) based on the context of a consumer's current search query or visit to a website or online application;

(iii) directed to a consumer in response to the consumer's request for information, product, a service, or feedback; or

(iv) processing personal data solely to measure or report advertising:

(A) performance;

(B) reach; or

(36) "Third party" means a person other than:

(a) the consumer, controller, or processor; or

(b) an affiliate or contractor of the controller or the processor.

(37) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(b) is the subject of efforts that are reasonable under the circumstances to maintain the information's secrecy.

§ 13-61-102 Applicability.

(1) This chapter applies to any controller or processor who:

(a)

(i) conducts business in the state; or

(ii) produces a product or service that is targeted to consumers who are residents of the state;

(b) has annual revenue of $25,000,000 or more; and

(i) during a calendar year, controls or processes personal data of 100,000 or more consumers; or

(ii) derives over 50% of the entity's gross revenue from the sale of personal data and controls or processes personal data of 25,000 or more consumers.

(2) This chapter does not apply to:

(a) a governmental entity or a third party under contract with a governmental entity when the third party is acting on behalf of the governmental entity;

(b) a tribe;

(d) a nonprofit corporation;

(e) a covered entity;

(f) a business associate;

(g) information that meets the definition of:

(i) protected health information for purposes of the federal Health Insurance Portability and Accountability Act of 1996, 42 U.S.C. Sec. 1320d et seq., and related regulations;

(ii) patient identifying information for purposes of 42 C.F.R. Part 2;

(iii) identifiable private information for purposes of the Federal Policy for the Protection of Human Subjects, 45 C.F.R. Part 46;

(iv) identifiable private information or personal data collected as part of human subjects research pursuant to or under the same standards as:

(A) the good clinical practice guidelines issued by the International Council for Harmonisation; or

(B) the Protection of Human Subjects under 21 C.F.R. Part 50 and Institutional Review Boards under 21 C.F.R. Part 56;

(v) personal data used or shared in research conducted in accordance with one or more of the requirements described in Subsection (2)(g)(iv);

(vi) information and documents created specifically for, and collected and maintained by, a committee but not a board or council listed in Section 26B-1-204;

(vii) information and documents created for purposes of the federal Health Care Quality Improvement Act of 1986, 42 U.S.C. Sec. 11101 et seq., and related regulations;

(viii) patient safety work product for purposes of 42 C.F.R. Part 3; or

(ix) information that is:

(A) deidentified in accordance with the requirements for deidentification set forth in 45 C.F.R. Part 164; and

(B) derived from any of the health care-related information listed in this Subsection (2)(g);

(h) information originating from, and intermingled to be indistinguishable with, information under Subsection (2)(g) that is maintained by:

(i) a health care facility or health care provider; or

(ii) a program or a qualified service organization as defined in 42 C.F.R. Sec. 2.11;

(i) information used only for public health activities and purposes as described in 45 C.F.R. Sec. 164.512;

(j)

(i) an activity by:

(A) a consumer reporting agency, as defined in 15 U.S.C. Sec. 1681a;

(B) a furnisher of information, as set forth in 15 U.S.C. Sec. 1681s-2, who provides information for use in a consumer report, as defined in 15 U.S.C. Sec. 1681a; or

(ii) subject to regulation under the federal Fair Credit Reporting Act, 15 U.S.C. Sec. 1681 et seq.; and

(iii) involving the collection, maintenance, disclosure, sale, communication, or use of any personal data bearing on a consumer's:

(A) credit worthiness;

(B) credit standing;

(D) character;

(E) general reputation;

(F) personal characteristics; or

(G) mode of living;

(k) a financial institution or an affiliate of a financial institution governed by, or personal data collected, processed, sold, or disclosed in accordance with, Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. Sec. 6801 et seq., and related regulations;

(l) personal data collected, processed, sold, or disclosed in accordance with the federal Driver's Privacy Protection Act of 1994, 18 U.S.C. Sec. 2721 et seq.;

(m) personal data regulated by the federal Family Education Rights and Privacy Act, 20 U.S.C. Sec. 1232g, and related regulations;

(n) personal data collected, processed, sold, or disclosed in accordance with the federal Farm Credit Act of 1971, 12 U.S.C. Sec. 2001 et seq.;

(o) data that are processed or maintained:

(i) in the course of an individual applying to, being employed by, or acting as an agent or independent contractor of a controller, processor, or third party, to the extent the collection and use of the data are related to the individual's role;

(ii) as the emergency contact information of an individual described in Subsection (2)(o)(i) and used for emergency contact purposes; or

(iii) to administer benefits for another individual relating to an individual described in Subsection (2)(o)(i) and used for the purpose of administering the benefits;

(p) an individual's processing of personal data for purely personal or household purposes; or

(q) an air carrier.

(3) A controller is in compliance with any obligation to obtain parental consent under this chapter if the controller complies with the verifiable parental consent mechanisms under the Children's Online Privacy Protection Act, 15 U.S.C. Sec. 6501 et seq., and the act's implementing regulations and exemptions.

(4) This chapter does not require a person to take any action in conflict with the federal Health Insurance Portability and Accountability Act of 1996, 42 U.S.C. Sec. 1320d et seq., or related regulations.

§ 13-61-103 Preemption -- Reference to other laws.

(1) This chapter supersedes and preempts any ordinance, resolution, rule, or other regulation adopted by a local political subdivision regarding the processing of personal data by a controller or processor.

(2) Any reference to federal law in this chapter includes any rules or regulations promulgated under the federal law.

Part 2 Rights Relating to Personal Data

§ 13-61-201 Consumer rights -- Access -- Deletion -- Portability -- Opt out of certain processing.

(1) A consumer has the right to:

(a) confirm whether a controller is processing the consumer's personal data; and

(b) access the consumer's personal data.

(2) A consumer has the right to delete the consumer's personal data that the consumer provided to the controller.

(3) A consumer has the right to obtain a copy of the consumer's personal data, that the consumer previously provided to the controller, in a format that:

(a) to the extent technically feasible, is portable;

(b) to the extent practicable, is readily usable; and

(c) allows the consumer to transmit the data to another controller without impediment, where the processing is carried out by automated means.

(4) A consumer has the right to request that a controller correct inaccuracies in the consumer's personal data, taking into account the nature of the personal data and the purposes of the processing of the consumer's personal data.

(5) A consumer has the right to opt out of the processing of the consumer's personal data for purposes of:

(a) targeted advertising; or

(b) the sale of personal data.

(6) Nothing in this section requires a person to cause a breach of security system as defined in Section 13-44-102.

§ 13-61-202 Exercising consumer rights.

(1) A consumer may exercise a right by submitting a request to a controller, by means prescribed by the controller, specifying the right the consumer intends to exercise.

(2) In the case of processing personal data concerning a known child, the parent or legal guardian of the known child shall exercise a right on the child's behalf.

(3) In the case of processing personal data concerning a consumer subject to guardianship, conservatorship, or other protective arrangement under Title 75, Chapter 5, Protection of Persons Under Disability and Their Property, the guardian or the conservator of the consumer shall exercise a right on the consumer's behalf.

§ 13-61-203 Controller's response to requests.

(1) Subject to the other provisions of this chapter, a controller shall comply with a consumer's request under Section 13-61-202 to exercise a right.

(2)

(a) Within 45 days after the day on which a controller receives a request to exercise a right, the controller shall:

(i) take action on the consumer's request; and

(ii) inform the consumer of any action taken on the consumer's request.

(b) The controller may extend once the initial 45-day period by an additional 45 days if reasonably necessary due to the complexity of the request or the volume of the requests received by the controller.

(i) inform the consumer of the extension, including the length of the extension; and

(ii) provide the reasons the extension is reasonably necessary as described in Subsection (2)(b).

(d) The 45-day period does not apply if the controller reasonably suspects the consumer's request is fraudulent and the controller is not able to authenticate the request before the 45-day period expires.

(3) If, in accordance with this section, a controller chooses not to take action on a consumer's request, the controller shall within 45 days after the day on which the controller receives the request, inform the consumer of the reasons for not taking action.

(4)

(a) A controller may not charge a fee for information in response to a request, unless the request is the consumer's second or subsequent request during the same 12-month period.

(b)

(i) Notwithstanding Subsection (4)(a), a controller may charge a reasonable fee to cover the administrative costs of complying with a request or refuse to act on a request, if:

(A) the request is excessive, repetitive, technically infeasible, or manifestly unfounded;

(B) the controller reasonably believes the primary purpose in submitting the request was something other than exercising a right; or

(C) the request, individually or as part of an organized effort, harasses, disrupts, or imposes undue burden on the resources of the controller's business.

(ii) A controller that charges a fee or refuses to act in accordance with this Subsection (4)(b) bears the burden of demonstrating the request satisfied one or more of the criteria described in Subsection (4)(b)(i).

(5) If a controller is unable to authenticate a consumer request to exercise a right described in Section 13-61-201 using commercially reasonable efforts, the controller:

(a) is not required to comply with the request; and

(b) may request that the consumer provide additional information reasonably necessary to authenticate the request.

Part 3 Requirements for Controllers and Processors

§ 13-61-301 Responsibility according to role.

(1) A processor shall:

(a) adhere to the controller's instructions; and

(b) taking into account the nature of the processing and information available to the processor, by appropriate technical and organizational measures, insofar as reasonably practicable, assist the controller in meeting the controller's obligations, including obligations related to the security of processing personal data and notification of a breach of security system described in Section 13-44-202.

(2) Before a processor performs processing on behalf of a controller, the processor and controller shall enter into a contract that:

(a) clearly sets forth instructions for processing personal data, the nature and purpose of the processing, the type of data subject to processing, the duration of the processing, and the parties' rights and obligations;

(b) requires the processor to ensure each person processing personal data is subject to a duty of confidentiality with respect to the personal data; and

(c) requires the processor to engage any subcontractor pursuant to a written contract that requires the subcontractor to meet the same obligations as the processor with respect to the personal data.

(3)

(a) Determining whether a person is acting as a controller or processor with respect to a specific processing of data is a fact-based determination that depends upon the context in which personal data are to be processed.

(b) A processor that adheres to a controller's instructions with respect to a specific processing of personal data remains a processor.

§ 13-61-302 Responsibilities of controllers -- Transparency -- Purpose specification and data minimization -- Consent for secondary use -- Security -- Nondiscrimination -- Nonretaliation -- Nonwaiver of consumer rights.

(1)

(a) A controller shall provide consumers with a reasonably accessible and clear privacy notice that includes:

(i) the categories of personal data processed by the controller;

(ii) the purposes for which the categories of personal data are processed;

(iii) how consumers may exercise a right;

(iv) the categories of personal data that the controller shares with third parties, if any; and

(v) the categories of third parties, if any, with whom the controller shares personal data.

(b) If a controller sells a consumer's personal data to one or more third parties or engages in targeted advertising, the controller shall clearly and conspicuously disclose to the consumer the manner in which the consumer may exercise the right to opt out of the:

(i) sale of the consumer's personal data; or

(ii) processing for targeted advertising.

(2)

(a) A controller shall establish, implement, and maintain reasonable administrative, technical, and physical data security practices designed to:

(i) protect the confidentiality and integrity of personal data; and

(ii) reduce reasonably foreseeable risks of harm to consumers relating to the processing of personal data.

(b) Considering the controller's business size, scope, and type, a controller shall use data security practices that are appropriate for the volume and nature of the personal data at issue.

(3) Except as otherwise provided in this chapter, a controller may not process sensitive data collected from a consumer without:

(a) first presenting the consumer with clear notice and an opportunity to opt out of the processing; or

(b) in the case of the processing of personal data concerning a known child, processing the data in accordance with the federal Children's Online Privacy Protection Act, 15 U.S.C. Sec. 6501 et seq., and the act's implementing regulations and exemptions.

(4)

(a) A controller may not discriminate against a consumer for exercising a right by:

(i) denying a good or service to the consumer;

(ii) charging the consumer a different price or rate for a good or service; or

(iii) providing the consumer a different level of quality of a good or service.

(b) This Subsection (4) does not prohibit a controller from offering a different price, rate, level, quality, or selection of a good or service to a consumer, including offering a good or service for no fee or at a discount, if:

(i) the consumer has opted out of targeted advertising; or

(ii) the offer is related to the consumer's voluntary participation in a bona fide loyalty, rewards, premium features, discounts, or club card program.

(5) A controller is not required to provide a product, service, or functionality to a consumer if:

(a) the consumer's personal data are or the processing of the consumer's personal data is reasonably necessary for the controller to provide the consumer the product, service, or functionality; and

(b) the consumer does not:

(i) provide the consumer's personal data to the controller; or

(ii) allow the controller to process the consumer's personal data.

(6) Any provision of a contract that purports to waive or limit a consumer's right under this chapter is void.

§ 13-61-303 Processing deidentified data or pseudonymous data.

(1) The provisions of this chapter do not require a controller or processor to:

(a) reidentify deidentified data or pseudonymous data;

(b) maintain data in identifiable form or obtain, retain, or access any data or technology for the purpose of allowing the controller or processor to associate a consumer request with personal data; or

(c) comply with an authenticated consumer request to exercise a right described in Subsections 13-61-202(1) through (3), if:

(i)

(A) the controller is not reasonably capable of associating the request with the personal data; or

(B) it would be unreasonably burdensome for the controller to associate the request with the personal data;

(ii) the controller does not:

(A) use the personal data to recognize or respond to the consumer who is the subject of the personal data; or

(B) associate the personal data with other personal data about the consumer; and

(iii) the controller does not sell or otherwise disclose the personal data to any third party other than a processor, except as otherwise permitted in this section.

(2) The rights described in Subsections 13-61-201(1) through (3) do not apply to pseudonymous data if a controller demonstrates that any information necessary to identify a consumer is kept:

(a) separately; and

(b) subject to appropriate technical and organizational measures to ensure the personal data are not attributed to an identified individual or an identifiable individual.

(3) A controller who uses pseudonymous data or deidentified data shall take reasonable steps to ensure the controller:

(a) complies with any contractual obligations to which the pseudonymous data or deidentified data are subject; and

(b) promptly addresses any breach of a contractual obligation described in Subsection (3)(a).

§ 13-61-304 Limitations.

(1) The requirements described in this chapter do not restrict a controller's or processor's ability to:

(a) comply with a federal, state, or local law, rule, or regulation;

(b) comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by a federal, state, local, or other governmental entity;

(c) cooperate with a law enforcement agency concerning activity that the controller or processor reasonably and in good faith believes may violate federal, state, or local laws, rules, or regulations;

(d) investigate, establish, exercise, prepare for, or defend a legal claim;

(e) provide a product or service requested by a consumer or a parent or legal guardian of a child;

(f) perform a contract to which the consumer or the parent or legal guardian of a child is a party, including fulfilling the terms of a written warranty or taking steps at the request of the consumer or parent or legal guardian before entering into the contract with the consumer;

(g) take immediate steps to protect an interest that is essential for the life or physical safety of the consumer or of another individual;

(h)

(i) detect, prevent, protect against, or respond to a security incident, identity theft, fraud, harassment, malicious or deceptive activity, or any illegal activity; or

(ii) investigate, report, or prosecute a person responsible for an action described in Subsection (1)(h)(i);

(i)

(i) preserve the integrity or security of systems; or

(ii) investigate, report, or prosecute a person responsible for harming or threatening the integrity or security of systems, as applicable;

(j) if the controller discloses the processing in a notice described in Section 13-61-302, engage in public or peer-reviewed scientific, historical, or statistical research in the public interest that adheres to all other applicable ethics and privacy laws;

(k) assist another person with an obligation described in this subsection;

(l) process personal data to:

(i) conduct internal analytics or other research to develop, improve, or repair a controller's or processor's product, service, or technology;

(ii) identify and repair technical errors that impair existing or intended functionality; or

(iii) effectuate a product recall;

(m) process personal data to perform an internal operation that is:

(i) reasonably aligned with the consumer's expectations based on the consumer's existing relationship with the controller; or

(ii) otherwise compatible with processing to aid the controller or processor in providing a product or service specifically requested by a consumer or a parent or legal guardian of a child or the performance of a contract to which the consumer or a parent or legal guardian of a child is a party; or

(n) retain a consumer's email address to comply with the consumer's request to exercise a right.

(2) This chapter does not apply if a controller's or processor's compliance with this chapter:

(a) violates an evidentiary privilege under Utah law;

(b) as part of a privileged communication, prevents a controller or processor from providing personal data concerning a consumer to a person covered by an evidentiary privilege under Utah law; or

(3) A controller or processor is not in violation of this chapter if:

(a) the controller or processor discloses personal data to a third party controller or processor in compliance with this chapter;

(b) the third party processes the personal data in violation of this chapter; and

(c) the disclosing controller or processor did not have actual knowledge of the third party's intent to commit a violation of this chapter.

(4) If a controller processes personal data under an exemption described in Subsection (1), the controller bears the burden of demonstrating that the processing qualifies for the exemption.

(5) Nothing in this chapter requires a controller, processor, third party, or consumer to disclose a trade secret.

§ 13-61-305 No private cause of action.

A violation of this chapter does not provide a basis for, nor is a violation of this chapter subject to, a private right of action under this chapter or any other law.

Part 4 Enforcement

§ 13-61-401 Investigative powers of division.

(1) The division shall establish and administer a system to receive consumer complaints regarding a controller's or processor's alleged violation of this chapter.

(2)

(a) The division may investigate a consumer complaint to determine whether the controller or processor violated or is violating this chapter.

(b) If the director has reasonable cause to believe that substantial evidence exists that a person identified in a consumer complaint is in violation of this chapter, the director shall refer the matter to the attorney general.

(c) Upon request, the division shall provide consultation and assistance to the attorney general in enforcing this chapter.

§ 13-61-402 Enforcement powers of the attorney general.

(1) The attorney general has the exclusive authority to enforce this chapter.

(2) Upon referral from the division, the attorney general may initiate an enforcement action against a controller or processor for a violation of this chapter.

(3)

(a) At least 30 days before the day on which the attorney general initiates an enforcement action against a controller or processor, the attorney general shall provide the controller or processor:

(i) written notice identifying each provision of this chapter the attorney general alleges the controller or processor has violated or is violating; and

(ii) an explanation of the basis for each allegation.

(b) The attorney general may not initiate an action if the controller or processor:

(i) cures the noticed violation within 30 days after the day on which the controller or processor receives the written notice described in Subsection (3)(a); and

(ii) provides the attorney general an express written statement that:

(A) the violation has been cured; and

(B) no further violation of the cured violation will occur.

(i) fails to cure a violation after receiving the notice described in Subsection (3)(a); or

(ii) after curing a noticed violation and providing a written statement in accordance with Subsection (3)(b), continues to violate this chapter.

(d) In an action described in Subsection (3)(c), the attorney general may recover:

(i) actual damages to the consumer; and

(ii) for each violation described in Subsection (3)(c), an amount not to exceed $7,500.

(4) All money received from an action under this chapter shall be deposited into the Consumer Privacy Account established in Section 13-61-403.

(5) If more than one controller or processor are involved in the same processing in violation of this chapter, the liability for the violation shall be allocated among the controllers or processors according to the principles of comparative fault.

§ 13-61-403 Consumer Privacy Restricted Account.

(1) There is created a restricted account known as the "Consumer Privacy Account."

(2) The account shall be funded by money received through civil enforcement actions under this chapter.

(3) Upon appropriation, the division or the attorney general may use money deposited into the account for:

(a) investigation and administrative costs incurred by the division in investigating consumer complaints alleging violations of this chapter;

(b) recovery of costs and attorney fees accrued by the attorney general in enforcing this chapter; and

(i) consumer rights under this chapter; and

(ii) compliance with the provisions of this chapter for controllers and processors.

(4) If the balance in the account exceeds $4,000,000 at the close of any fiscal year, the Division of Finance shall transfer the amount that exceeds $4,000,000 into the General Fund.

§ 13-61-404 Attorney general report.

(1) The attorney general and the division shall compile a report:

(a) evaluating the liability and enforcement provisions of this chapter, including the effectiveness of the attorney general's and the division's efforts to enforce this chapter; and

(b) summarizing the data protected and not protected by this chapter including, with reasonable detail, a list of the types of information that are publicly available from local, state, and federal government sources.

(2) The attorney general and the division may update the report as new information becomes available.

(3) The attorney general and the division shall submit the report to the Business and Labor Interim Committee before July 1, 2025.

Part 5 Motor Vehicle Data Privacy

§ 13-61-501 Definitions.

As used in this part:

(1) "Connected device" means a consumer's mobile phone, tablet, or similar personal electronic device that connects to a motor vehicle through the in-vehicle interface for purposes of accessing the device's applications, contacts, or other data through the vehicle's display.

(2) "In-vehicle interface" means a display screen, control panel, or other interactive system in a motor vehicle through which an individual may access or control motor vehicle functions or settings.

(3) "Readily accessible data" means personal data that:

(a) a consumer directly inputs into or provides to the motor vehicle from a connected device through a motor vehicle's in-vehicle interface; and

(b) is stored locally on the motor vehicle and accessible through the in-vehicle interface.

§ 13-61-502 Motor vehicle manufacturer requirements.

(1) Except as provided in Subsection (2), a motor vehicle manufacturer shall, for a motor vehicle with a model year 2030 or later, provide in-vehicle privacy controls that allow a consumer to:

(a) view the categories of personal data the vehicle data collection system collects;

(b) view the categories of third parties with whom the motor vehicle manufacturer shares personal data;

(d) delete readily accessible data.

(2) A motor vehicle manufacturer is not required to comply with Subsection (1) for a specific motor vehicle model if the manufacturer demonstrates that the model is not technologically capable of providing the privacy controls described in Subsection (1).

(3) A motor vehicle manufacturer shall make the in-vehicle privacy controls described in Subsection (1):

(a) accessible through the motor vehicle's in-vehicle interface;

(b) accessible to any individual operating the motor vehicle; and

(4) The settings selected by a consumer using the in-vehicle privacy controls shall remain in effect until the consumer changes the settings.

(5) A motor vehicle manufacturer may provide the consumer with access to privacy controls through a website or mobile application in addition to the in-vehicle privacy controls required by this section, but may not require the consumer to use a website or mobile application to exercise the rights described in this section.

(6) If a motor vehicle manufacturer receives a court order requiring deletion or a request that includes a copy of a legally issued protective order, the motor vehicle manufacturer shall delete all personal data within five business days after the day on which the motor vehicle manufacturer receives the court order or request.

§ 13-61-503 Exemptions for motor vehicle manufacturers.

(1) A motor vehicle manufacturer may collect personal data for the purpose of improving the motor vehicle manufacturer's product if the motor vehicle manufacturer:

(a) collects only the minimum personal data necessary to accomplish the purpose; and

(b) uses the personal data only for internal product improvement purposes.

(2) Personal data collected in accordance with Subsection (1) is not subject to the consent requirements of Section 13-61-302.

(3) Section 13-61-302 does not apply to personal data that a vehicle data collection system:

(a) collects solely for the purpose of:

(i) vehicle safety, including airbag deployment, operational safety, passenger safety, collision avoidance, or other safety features required by federal law;

(ii) vehicle operation, including engine control, battery level, transmission operation, or other mechanical functions necessary to operate the motor vehicle; or

(iii) compliance with a federal or state law, rule, or regulation; or

(b) processes temporarily and does not transmit outside the motor vehicle or store for longer than necessary.

§ 13-61-504 Motor Vehicle Division notification requirements.

The Motor Vehicle Division, created in Section 41-1a-106, shall provide information on the division's website regarding the data privacy rights of motor vehicle owners under this part.

Chapter 62 Digital Asset Management Act

Part 1 General Provisions

§ 13-62-101 Definitions.

As used in this chapter:

(1) "Agent" means a person who is authorized to act on behalf of an owner with respect to a digital asset.

(2) "Control" means:

(a) an owner or an agent has the exclusive legal authority to conduct a transaction relating to the digital asset, including by means of a private key or the use of a multi-signature arrangement the owner or agent authorizes; or

(b) a secured party has created a smart contract that gives the secured party exclusive legal authority to conduct a transaction relating to a digital security.

(3)

(a) "Digital asset" means a representation of economic, proprietary, or access rights that is stored in a computer readable format.

(b) "Digital asset" includes:

(i) a digital user asset; or

(ii) a digital security.

(4) "Digital security" means a digital asset that constitutes a security, as that term is defined in Section 70A-8-101.

(5)

(a) "Digital user asset" means a digital asset that is used or bought primarily for consumptive, personal, or household purposes.

(b) "Digital user asset" includes an open blockchain token.

(6) "Multi-signature arrangement" means a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the digital asset, in which two or more private keys are required to conduct a transaction.

(7) "Private key" means a unique element of cryptographic data that is:

(a) held by a person;

(b) paired with a public key; and

(8) "Public key" means a unique element of cryptographic data that:

(a) is publicly available;

(b) is paired with a private key that is held by the owner of the public key; and

(9) "Smart contract" means a transaction that is comprised of code, script, or programming language that executes the terms of an agreement, and which may include taking custody of and transferring a digital asset, or issuing executable instructions for these actions, based on the occurrence or nonoccurrence of specified conditions.

§ 13-62-102 Ownership of digital assets.

(1) Digital securities are intangible personal property and shall be considered securities and investment property for purposes of this chapter, Title 70A, Chapter 8, Uniform Commercial Code - Investment Securities, and Title 70A, Chapter 9a, Uniform Commercial Code - Secured Transactions.

(2) An owner of a digital user asset may demonstrate ownership of the digital user asset through control.

(3) Nothing in this chapter shall be interpreted to restrict or impair an owner's right to own a digital asset.

§ 13-62-103 Protection of private keys.

(1)

(a) Except as provided in Subsection (1)(b), a person may not be compelled to produce a private key, or any components that allow the derivation of a private key, or make a private key known to any other person in any civil, criminal, administrative, legislative, or other proceeding in the state that relates to a digital asset, digital identity, or other interest or right to which the private key provides access.

(b) A person may be compelled in a civil, criminal, administrative, legislative, or other lawful proceeding in the state to produce a private key if a public key is unavailable or unable to disclose the information requested to be obtained.

(2) A person may be compelled by court order to:

(a) produce, sell, transfer, convey, or disclose a digital asset, digital identity, or other interest or right to which a private key provides access; or

(b) disclose information about the digital asset, digital identity, or other interest or right.

Chapter 64 Vehicle Value Protection Agreement Act

Part 1 General Provisions

§ 13-64-101 Definitions.

As used in this chapter:

(1) "Administrative functions" means the same as that term is defined in Section 31A-6b-102.

(2) "Agreement administrator" means a person who provides administrative functions related to a vehicle value protection agreement.

(3) "Covered vehicle" means a vehicle that is covered under a vehicle value protection agreement.

(4) "Division" means the Division of Consumer Protection established in Section 13-2-102.

(5) "Finance agreement" means the same as that term is defined in Section 31A-6b-102.

(6) "Insurer" means the same as that term is defined in Section 31A-1-301.

(7) "Preliminary period" means a time period that:

(a) begins the day on which the vehicle value protection agreement becomes effective; and

(b) ends the last day on which the purchaser may cancel the vehicle value protection agreement with a full refund.

(8) "Provider" means a person who is obligated to provide a benefit to another person under a vehicle value protection agreement.

(9) "Purchaser" means a person who purchases a benefit from another person under a vehicle value protection agreement.

(10) "Security" means the same as that term is defined in Section 31A-1-301.

(11) "Vehicle" means the same as that term is defined in Section 31A-6b-102.

(12)

(a) "Vehicle value protection agreement" means an agreement for a separate charge between a provider and purchaser under which the provider agrees to, upon damage, total loss, or unrecovered theft of the purchaser's covered vehicle, provide a benefit to the purchaser that may be applied to:

(i) the cash value of the covered vehicle when traded in for a replacement vehicle;

(ii) the finance agreement for a replacement vehicle; or

(iii) the purchase or lease price of a replacement vehicle.

(b) "Vehicle value protection agreement" includes:

(i) a vehicle trade-in agreement;

(ii) a vehicle diminished value agreement;

(iii) a vehicle cash down payment protection agreement; and

(iv) a vehicle depreciation benefit agreement.

(i) insurance or an insurance contract regulated under Title 31A, Insurance Code;

(ii) a guaranteed asset protection waiver, as defined in Section 31A-6b-102;

(iii) a debt cancellation agreement, as defined in Section 31A-21-109; or

(iv) a debt suspension contract, as defined in Section 31A-21-109.

Part 2 Vehicle Value Protection Agreements

§ 13-64-201 Vehicle value protection agreement -- Required disclosures -- Finance agreement conditions.

(1) A person may not issue, sell, offer to sell, or otherwise provide a vehicle value protection agreement that does not comply with this chapter.

(2) A vehicle value protection agreement shall conspicuously disclose:

(a) the name, address, and contact information of:

(i) the provider;

(ii) the agreement administrator, if any; and

(iii) the purchaser;

(b) the terms of the vehicle value protection agreement, including:

(i) the charges under the vehicle value protection agreement;

(ii) the benefit eligibility requirements;

(iii) the conditions imposed by the vehicle value protection agreement; and

(iv) the procedure a purchaser is required to follow to obtain the benefit; and

(c) subject to Subsection (3), the terms or restrictions governing cancellation of the vehicle value protection agreement, including:

(i) that the purchaser may cancel the vehicle value protection agreement during the preliminary period;

(ii) the length of the preliminary period;

(iii) the purchaser's right to a refund for cancellation under Section 13-64-203; and

(iv) the methodology for calculating any refund to the purchaser for cancellation.

(3) The disclosure described in Subsection (2)(c)(i) shall:

(a) be written in dark bold with at least 12-point type on the first page of the vehicle value protection agreement; and

(b) read as follows: "IN ACCORDANCE WITH UTAH CODE SECTION 13-64-203, YOU, THE PURCHASER, MAY CANCEL THIS AGREEMENT AT ANY TIME BEFORE THE END OF THE PRELIMINARY PERIOD DESCRIBED IN THIS AGREEMENT."

(4) The provider shall provide the purchaser a copy of the vehicle value protection agreement at the time the provider and purchaser enter into the vehicle value protection agreement.

(5) A finance agreement or vehicle purchase agreement may not be conditioned on a purchaser entering into a vehicle value protection agreement.

§ 13-64-202 Liability insurance -- Security for payment -- Provider net worth value.

(1) A provider under a vehicle value protection agreement shall:

(a) insure all vehicle value protection agreements the provider enters into under a contractual liability insurance policy that:

(i)

(A) is issued by an insurer authorized to do business in this state that has a surplus as to policyholders and paid-in capital of less than $10,000,000 and more than $5,000,000 and provides evidence to the division that the insurer maintains a ratio of net written premiums to surplus as to policyholders and paid-in capital of not greater than three to one; or

(B) is issued by an insurer authorized to do business in this state that has as a surplus as to policyholders and paid-in capital of more than $10,000,000; and

(ii)

(A) requires the insurer to reimburse the purchaser if the provider fails to perform the provider's obligations under a vehicle value protection agreement;

(B) covers any amount the provider is required to pay for failure to perform under a vehicle value protection agreement; and

(C) allows a purchaser to file with the insurer a claim for reimbursement under the vehicle value protection agreement if the provider does not pay the purchaser within 60 days after the day on which proof of damage, total loss, or unrecovered theft of the covered vehicle is provided to the provider in accordance with the terms of the vehicle value protection agreement;

(b)

(i) maintain a funded reserve account to cover the provider's obligations under all vehicle value protection agreements the provider enters into that is equal to or greater than 40% of money received by, less claims paid to, the provider for the vehicle value protection agreements; and

(ii) place in trust with the division a security that is equal to at least 5% of money received by, less claims paid to, the provider for all vehicle value protection agreements the provider enters into and more than $25,000; or

(c) maintain, or together with the provider's parent company maintain, a net worth or stockholders' equity of $100,000,000.

(2)

(a) An insurer described in Subsection (1)(a) shall annually file with the division:

(i) a copy of the insurer's audited financial statements;

(ii) the insurer's National Association of Insurance Commissioner annual statement; and

(iii) the actuarial certification filed in the insurer's state of domicile.

(b) The division may examine a reserve account described in Subsection (1)(b).

(i) the provider's or the provider's parent company's most recent Form 10-K or Form 20-F filed with the Securities and Exchange Commission; or

(ii) if the provider does not file with the Securities and Exchange Commission, a copy of the provider's audited financial statements that shows the net worth of the provider or the provider's parent company.

§ 13-64-203 Preliminary period -- Cancellation -- Refund.

(1)

(a) A vehicle value protection agreement shall provide for a preliminary period of at least 30 days.

(b) If a purchaser cancels a vehicle value protection agreement within the preliminary period, the purchaser is entitled to a refund of the charges under the vehicle value protection agreement as follows:

(i) if benefits have not been provided, a full refund; or

(ii) if benefits have been provided, a refund to the extent provided for in the vehicle value protection agreement.

(2)

(a) Except as provided in Subsection (2)(b), if a provider cancels a vehicle value protection agreement, the provider shall mail a written notice to the purchaser at least five days before the day on which the vehicle value protection agreement is canceled.

(b) A provider may immediately cancel a vehicle value protection agreement upon sending a notice of cancellation to the purchaser if the reason for the cancellation is:

(i) the purchaser's failure to pay the provider's fee under the vehicle value protection agreement; or

(ii) the purchaser's breach of the purchaser's duties relating to the covered vehicle.

(3) A notice described in Subsection (2) shall include:

(a) the effective date of the cancellation; and

(b) the reason for the cancellation.

(4) If a provider cancels a vehicle value protection agreement for a reason other than the purchaser's failure to pay the provider's fee under the vehicle value protection agreement, the provider:

(a) shall refund the purchaser any unearned provider fee under the vehicle value protection agreement;

(b) may charge the purchaser an administrative fee of up to $75; and

Part 3 Enforcement

§ 13-64-301 Administration and enforcement -- Division powers -- Fees -- Rulemaking.

(1) The division shall administer and enforce this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(a) the division director may impose an administrative fine of up to $2,500 for each act that is in violation of this chapter, including failure to insure or consider a vehicle value protection agreement as required under Subsection 13-64-202(1); and

(b) the division may bring a civil action to enforce this chapter.

(3) In a civil action by the division to enforce this chapter, the court may:

(a) declare that an act or practice violates this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured individual;

(e) impose a civil penalty of up to $2,500 for each violation of this chapter; or

(f) award any other relief that the court deems reasonable and necessary.

(4) If a court grants judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(5)

(a) A person who violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.

(b) A civil penalty authorized under this section may be imposed in any civil action brought by the division.

(c) The division shall deposit money received for the payment of a fine or civil penalty under this section into the Consumer Protection Education and Training Fund created in Section 13-2-109.

(6) The division may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer and enforce this chapter.

Chapter 65 Utah Commercial Email Act

Part 1 General Provisions

§ 13-65-101 Definitions.

As used in this chapter:

(1) "Advertiser" means a person who advertises the person's product, service, or website through the use of commercial email.

(2) "Commercial email" means an email used primarily to:

(a) advertise or promote a commercial website, product, or service; or

(b) solicit money, property, or personal information.

(3) "Division" means the Division of Consumer Protection.

(4) "Domain name" means any alphanumeric designation that is registered with or assigned by any domain name registrar, domain name registry, or other domain name registration authority as part of an electronic address on the Internet.

(5) "Electronic mail service provider" means a company or a service that provides routing, relaying, handling, storage, or support for email addresses and email inboxes.

(6) "Header information" means information attached to an email, including:

(a) the originating domain name;

(b) the originating email address;

(d) the routing information; and

(e) any other information that appears in the header line identifying, or purporting to identify, a person initiating the message.

(7) "Initiate" means an act of:

(a) originating, transmitting, or sending commercial email; or

(b) promising, paying, or providing other consideration for another person to originate, transmit, or send a commercial email.

(8)

(a) "Initiator" means a person who:

(i) originates, transmits, or sends commercial email; or

(ii) promises, pays, or provides other consideration for another person to originate, transmit, or send a commercial email.

(b) "Initiator" does not include a person whose activities are a routine conveyance.

(9) "Preexisting or current business relationship" means a situation where the recipient has:

(a) made an inquiry and provided an email address; or

(b) made an application, a purchase, or a transaction, with or without consideration, related to a product or a service offered by the advertiser.

(10) "Recipient" means an addressee of an unsolicited email.

(11) "Routine conveyance" means an Internet service provider's or email provider's automatic electronic mail message processes, including routing, relaying, handling, or storing through an automatic technical process, for which a person other than the Internet service provider or email provider has identified the electronic mail message recipients and provided the recipients' addresses.

(12) "Unsolicited commercial email" means a commercial email sent by an advertiser to a recipient that:

(a) has not provided direct consent to the advertiser to receive the commercial email; and

(b) does not have a preexisting or current relationship with the advertiser.

(13) "Utah email address" means an email address that :

(a) is provided by an electronic mail service provider that sends bills for providing and maintaining that email address to a mailing address in this state;

(b) is ordinarily accessed from a computer located in this state;

(d) results in delivery of an email to a server in Utah.

Part 2 Restrictions on Commercial Email

§ 13-65-201 Prohibited uses of email.

An advertiser or an initiator may not initiate or advertise in a commercial email sent from this state or sent to a Utah email address if:

(1) the commercial email contains or is accompanied by a third party's domain name without the permission of the third party;

(2) the commercial email contains or is accompanied by false, misrepresented, or forged header information, even if the commercial email contains truthful identifying information for the advertiser in the body of the email; or

(3) the commercial email has a subject line that is likely to mislead a recipient, acting reasonably under the circumstances, about a material fact regarding the identity of the advertiser, the contents, or the subject matter of the commercial email.

§ 13-65-202 Cause of action.

(1)

(a) The following persons may bring a claim against an advertiser or initiator who violates Section 13-65-201:

(i) an electronic mail service provider;

(ii) a recipient of an unsolicited commercial email; or

(iii) a person whose brand, trademark, email address, or domain name an advertiser or initiator uses, without authorization, in the header information.

(b) There is a rebuttable presumption that a commercial email that violates Section 13-65-201 is an unsolicited commercial email.

(2)

(a) A person described in Subsection (1)(a)(i) or (ii) may recover:

(i) actual damages; and

(ii) except as provided in Subsection (2)(c), liquidated damages of $1,000 for each unsolicited commercial email transmitted in violation of Section 13-65-201.

(b) If an addressee of an unsolicited commercial email has more than one email address to which an advertiser or an initiator sends an unsolicited commercial email, the addressee is considered a separate recipient for each email address to which the advertiser or the initiator sends the unsolicited commercial email.

(c) If a court finds that an advertiser or an initiator used due diligence to establish and implement practices and procedures to effectively prevent unsolicited commercial emails in violation of this chapter, the court shall reduce the liquidated damages to $100 for each unsolicited commercial email transmitted in violation of Section 13-65-201.

(3) A person described in Subsection (1)(a)(iii) may recover:

(a) actual damages; and

(b) liquidated damages in an amount equal to the lesser of:

(i) $1,000 for each commercial email transmitted in violation of this chapter that uses, without authorization, a person's brand, trademark, email address, or domain name in the header information; and

(ii) $2,000,000.

(4) The prevailing party in an action brought under this section may recover reasonable attorney fees and costs.

(5)

(a) Defendants in an action under this section are jointly and severally liable.

(b) There is no cause of action under this section against an electronic mail service provider who is involved only in the routine conveyance of commercial email over the email service provider's computer network.

§ 13-65-203 Enforcement.

(1) The division shall administer and enforce the provisions of this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2)

(a) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(i) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(ii) the division may bring an action in a court of competent jurisdiction to enforce a provision of this chapter.

(b) In a court action by the division to enforce a provision of this chapter, the court may:

(i) declare that an act or practice violates a provision of this chapter;

(ii) issue an injunction for a violation of this chapter;

(iii) order disgorgement of any money received in violation of this chapter;

(iv) order payment of disgorged money to an injured purchaser or consumer;

(v) impose a fine of up to $2,500 for each violation of this chapter; or

(vi) award any other relief that the court deems reasonable and necessary.

(3) If a court of competent jurisdiction grants judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(4)

(a) A person who violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.

(b) A civil penalty authorized under this section may be imposed in any civil action brought by the division.

(5) All money received for the payment of a fine or civil penalty imposed under this section shall be deposited into the Consumer Protection Education and Training Fund created in Section 13-2-109.

Chapter 66 Business Services Boycott Restrictions

Part 1 General Provisions

§ 13-66-101 Definitions.

As used in this chapter:

(1) "Boycotted company" means a company that:

(a) engages in, facilitates, or supports the manufacture, import, distribution, advertising, sale, or lawful use of a firearm, ammunition, or another component or accessory of a firearm or ammunition; or

(b) does not meet or commit to meet:

(i) environmental, social, or governance criteria in that the company engages in the exploration, production, utilization, transportation, sale, or manufacture of fossil fuel-based or nuclear energy, timber, mining, or agriculture; or

(ii) environmental standards, including standards for eliminating, reducing, offsetting, or disclosing greenhouse gas-emissions, beyond applicable state and federal law requirements.

(2)

(a) "Company" means a corporation, partnership, limited liability company, or similar entity.

(b) "Company" includes any wholly-owned subsidiary, majority-owned subsidiary, parent company, or affiliate of an entity described in Subsection (2)(a).

Part 2 Prohibitions

§ 13-66-201 Coordinated elimination of boycotted company's options to obtain a product or service prohibited -- Civil action -- Damages -- Exceptions.

(1) Except as provided in Subsection (4), a company that offers a product or service may not, with the specific intent of destroying a boycotted company and without an ordinary business purpose, coordinate or conspire with another company to eliminate the viable options for the boycotted company to obtain the product or service.

(2)

(a) A person who is injured or is threatened with injury to the person's business or property by a violation of Subsection (1) may bring an action for injunctive relief or damages.

(b) In an action for a violation of Subsection (1), the court:

(i) shall award attorney fees and costs to the prevailing party; and

(ii) may not reduce a judgment to an amount less than the amount of actual damages sustained.

(3) A person may not recover damages under this section from:

(a) a political subdivision;

(b) an official or employee of a political subdivision acting in an official capacity; or

(c) another person based on an official action directed by a political subdivision or a political subdivision's official or employee acting in an official capacity.

(4) This section does not prohibit a person from engaging in an activity to the extent the activity is regulated or supervised by state government officers or agencies under the laws of this state or federal government officers or agencies under the laws of the United States.

Chapter 67 Online Dating Safety Act

§ 13-67-101 Definitions.

As used in this chapter:

(1) "Banned member" means a member whose account or profile is the subject of a fraud ban.

(2) "Criminal background screening" means a name search for an individual's criminal conviction and is conducted by searching:

(a) available and regularly updated government public record databases that in the aggregate provide national coverage for criminal conviction records; or

(b) a regularly updated database with national coverage of criminal conviction records and sexual offender registries maintained by a private vendor.

(3)

(a) "Criminal conviction" means a conviction for a crime in this state, another state, or under federal law.

(b) "Criminal conviction" includes an offense that would require registration under Title 53, Chapter 29, Sex, Kidnap, and Child Abuse Offender Registry, or under a similar law in a different jurisdiction.

(4) "Division" means the Division of Consumer Protection in the Department of Commerce.

(5) "Fraud ban" means the expulsion of a member from an online dating service because, in the judgment of the online dating service provider, there is a significant risk the member will attempt to obtain money from another member through fraudulent means.

(6) "Member" means an individual who submits to an online dating service provider the information required by the online dating service provider to access the online dating service provider's online dating service.

(7) "Online dating service" means a product or service that is:

(a) conducted through a website or a mobile application; and

(b) primarily marketed and intended to offer a member access to dating or romantic relationships with another member by arranging or facilitating the social introduction of members.

(8) "Online dating service provider" means a person predominantly engaged in the business of offering an online dating service.

(9) "Utah member" means a member who provides a Utah billing address or zip code when registering with an online dating service provider.

§ 13-67-102 Applicability of chapter.

This chapter does not apply to an Internet service provider serving as an intermediary for a transmission of an electronic message between members of an online dating service provider.

§ 13-67-103 Criminal background screening disclosures.

(1) An online dating service provider that offers services to residents of this state and does not conduct a criminal background screening on each member shall, before permitting a Utah member to communicate through the online dating service provider with another member, clearly and conspicuously disclose to the Utah member that the online dating service provider does not conduct a criminal background screening on each member.

(2) An online dating service provider that offers services to residents of this state and conducts a criminal background screening on each member shall, before permitting a Utah member to communicate through the provider with another member, clearly and conspicuously:

(a) disclose to the Utah member that the online dating service provider conducts a criminal background screening on each member; and

(b) include on the online dating service provider's website or mobile application:

(i) a statement of whether the online dating service provider excludes from the online dating service provider's online dating service an individual who is identified as having a criminal conviction; and

(ii) a statement that a criminal background screening:

(A) may be inaccurate or incomplete;

(B) may give a member a false sense of security; and

§ 13-67-104 Safety awareness disclosures.

(1) An online dating service provider that offers services to residents of this state shall clearly and conspicuously provide a safety awareness notification to all Utah members that includes a list of safety measures reasonably designed to increase awareness of safer online dating practices and clear guidelines and resources for reporting crimes committed by an online dating service member.

(2)

(a) A safety awareness notification described in Subsection (1) shall:

(i) have a heading or headings substantially similar to:

(A) "Online Dating Safety Awareness";

(B) "Protecting Yourself from Sexual Assault and Dating Violence"; and

(ii) include information relevant to member safety awareness, including the following or substantially similar information, which may be revised or updated to reflect current information and best safety practices:

(A) a notice that engaging in sexual conduct without the other person's consent is a criminal act and subject to prosecution;

(B) an advisory that getting to know an individual through an online dating service may be risky and a member should follow safety precautions when sharing information or meeting in person;

(C) an advisory that a member should avoid sharing the member's last name, email address, home address, phone number, place of work, social security number, details of the member's daily routine, or other identifying information in the member's dating profile or initial email messages or communications;

(D) an advisory that a member should stop communicating with an individual who pressures the member for personal or financial information or attempts to trick the member into revealing personal or financial information;

(E) an advisory that a member should not send money to an individual the member meets on an online dating service, especially by wire transfer, even if the individual claims to be experiencing an emergency;

(F) an advisory that if a member decides to meet another member in person, the member should tell someone in the member's family or a friend where the member is going and when the member is planning to return;

(G) an advisory that a member should provide the member's own transportation to and from an in-person date and meet in a public place with many people around;

(H) an advisory that an individual may provide false information in a dating profile;

(I) a notice that a member should block and report to the online dating service a member whose behavior is suspicious, offensive, harassing, threatening, fraudulent, or involves a request for money or an attempt to sell a product or service;

(J) a request that if a member is the victim or survivor of sexual or intimate partner violence or a financial crime through someone the member met on the online dating service, the member should report the incident to the online dating service and to law enforcement;

(K) a notice that if a member is the victim or survivor of sexual or intimate partner violence or a financial crime through someone the member met on the online dating service, the member is not to blame and may seek support through national or local hotlines and services; and

(L) an advisory that reporting criminal activity by another member may help prevent a perpetrator of a rape, assault, or financial crime from hurting or continuing to hurt others, and may be necessary for an online dating service to take responsive action against the member who perpetrated the crime.

(b)

(i) An online dating service provider shall provide a clear and conspicuous method for a Utah member to contact the online dating service provider to report a member who engages in an act of sexual or intimate partner violence, a financial crime, or other misconduct.

(ii) An online dating service provider shall include the information described in Subsection (2)(b)(i) in the safety awareness notification described in Subsection (1).

(3) An online dating service provider that provides the notification required under this section shall give the notification at the time a Utah member registers with the online dating service provider and by way of a link on the online dating service provider's main website or mobile application.

§ 13-67-105 Fraud ban notification.

(1) An online dating service provider shall provide to a Utah member a fraud ban notification if the Utah member has received and responded to a message from a banned member.

(2) A fraud ban notification under Subsection (1) shall include:

(a) to the extent permitted by law, the banned member's username, identification number, or other profile identifier;

(b) a statement that the banned member may have been using a false identity or attempting to defraud members;

(d) an online link to information regarding ways to avoid online fraud or being defrauded by a member of an online dating service.

(3) A fraud ban notification under Subsection (1) shall be:

(a) clear and conspicuous;

(b) sent by email, text message, or other appropriate means of communication consented to by the Utah member; and

(c)

(i) except as provided in Subsection (3)(c)(ii), sent within 24 hours after a fraud ban is initiated against a banned member; or

(ii) sent within three days after the day on which a fraud ban is initiated against a banned member if, in the judgment of the online dating service provider, the circumstances require the fraud ban notification be sent after the 24-hour period.

(4) Except as provided in Section 13-67-106, an online dating service provider or an online dating service provider's employees and agents who are acting in good faith and in compliance with this section are not liable to a person based on:

(a) the means of communication used to issue a fraud ban notification to a Utah member under this section;

(b) the timing of a fraud ban notification sent to a Utah member under this section; or

(i) information that a member is a banned member or the subject of a fraud ban;

(ii) the banned member's username, identification number, or other profile identifier; or

(iii) the reason that the online dating service provider initiated the fraud ban of the banned member.

§ 13-67-106 Violation -- Enforcement -- Limitations.

(1)

(a) The division may enforce the provisions of this chapter in accordance with Chapter 2, Division of Consumer Protection.

(b) In addition to the division's enforcement powers under Subsection (1)(a), a municipal, county, or state prosecuting authority may enforce this chapter through a civil action if the prosecuting authority is screening or prosecuting a criminal matter based on sexual or intimate partner violence or a financial crime perpetrated against a Utah member by an individual the Utah member met on an online dating service.

(2)

(a) An online dating service provider that violates this chapter is, in addition to any other penalties established by law, liable for:

(i) a civil penalty not to exceed $250 for each Utah member at the time of the violation; and

(ii) filing fees and reasonable attorney fees.

(b) A court shall enjoin an online dating service provider who violates this chapter from an additional violation of this chapter.

(3) This chapter does not:

(a) provide a basis for or create a private right of action; or

(b) diminish or adversely affect protections for an online dating service provider under 47 U.S.C. Sec. 230.

Chapter 68 Lawyer Referral Consultants Registration Act

Part 1 General Provisions

§ 13-68-101 Definitions.

As used in this chapter:

(1) "Attorney" means an individual who is authorized to provide legal services in any state or territory of the United States.

(2) "Client" means a person:

(a) to whom a lawyer referral consultant provides lawyer referral services; or

(b) that enters into an agreement to receive services from a lawyer referral consultant.

(3) "Compensation" means anything of economic value that a person pays, loans, grants, gives, donates, or transfers to a person, directly or indirectly, for or in consideration of:

(a) services;

(b) personal or real property; or

(4) "Digital marketing service" means an internet-based company that:

(a) advertises legal services on behalf of a law firm; and

(b) does not contact prospective clients individually.

(5) "Division" means the Division of Consumer Protection established in Section 13-2-102.

(6) "Law firm" means an entity consisting of one or more licensed lawyers lawfully engaged in the practice of law.

(7) "Lawyer referral consultant" means an individual that engages in lawyer referral service.

(8)

(a) "Lawyer referral service" means assisting a person to find an attorney or law firm that provides legal services in the legal field appropriate for the person's legal matter.

(b) "Lawyer referral service" does not include a digital marketing service.

(9) "Legal services" means any form of legal advice or legal representation that is subject to the laws of this state.

Part 2 Registration Requirements

§ 13-68-201 Requirement to be registered as a lawyer referral consultant.

(1) Except as provided in Subsection (2), an individual may not engage in an activity of a lawyer referral consultant for compensation unless the individual registers as a lawyer referral consultant under this chapter.

(2) Except as provided in Subsections 13-68-303(3), (4), and (5), this chapter does not apply to an attorney.

(3) A lawyer referral consultant may only offer nonlegal assistance or advice in providing lawyer referral services.

§ 13-68-202 Application for registration.

(1) To register as a lawyer referral consultant an individual shall:

(a) submit an annual application in a form:

(i) in the manner the division determines; and

(ii) including any information that the division requires by rule the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;

(b) pay an annual registration fee determined by the division in accordance with Section 63J-1-504;

(i) a felony; or

(ii) within the 10 years before the day on which the applicant submits the application or renewal application, a misdemeanor involving theft, fraud, or dishonesty;

(d) not have violated Chapter 11, Utah Consumer Sales Practices Act;

(e) submit fingerprint cards in a form acceptable to the division at the time the application is filed;

(f) pay the cost of:

(i) the fingerprint card described in Subsection (1)(e); and

(ii) the criminal background check described in Subsection (1)(g);

(g) consent to a fingerprint background check of the individual by:

(i) the Bureau of Criminal Identification; or

(ii) another state or federal agency that performs criminal background checks; and

(h) designate a registered agent for service of process in the state, and state the registered agent's:

(i) name;

(ii) street address;

(iii) mailing address; and

(iv) telephone number.

(2) The division shall register an individual who qualifies under this chapter as a lawyer referral consultant.

(3) A lawyer referral consultant shall update registration information within 30 days after the day on which information the lawyer referral consultant provides to the division on the application becomes incorrect or incomplete.

(4) Registration of a lawyer referral consultant in accordance with this chapter is effective for one year after the day on which the division registers an individual as a lawyer referral consultant.

(5) To renew a lawyer referral consultant registration in accordance with this section, a lawyer referral consultant shall submit a registration renewal application to the division at least 30 days before the day on which the lawyer referral consultant's registration expires.

(6) Registration with the division does not constitute an approval or endorsement of the lawyer referral consultant by the division or the state.

§ 13-68-204 Bonds -- Exemption -- Statements dependent on posting bond.

(1) A lawyer referral consultant shall submit proof of obtaining and maintaining the following in a form the division approves and in the amount of $50,000:

(a) a surety bond that a surety authorized to transact business in this state issues; or

(b) a certificate of deposit in a financial institution authorized under the laws of this state or the United States to accept deposits from the public.

(2) The division may claim a lawyer referral consultant's surety bond or certificate of deposit for the benefit of a consumer who incurs actual damages as a result of the lawyer referral consultant's failure to comply with this chapter.

(3) After a consumer recovers actual damages, the division may recover from the surety bond or certificate of deposit any administrative fine, civil penalty, investigative cost, attorney fees, and other costs of collecting and distributing funds under this section.

(4)

(a) If a surety bond or certificate of deposit that a lawyer referral consultant posts under this section is canceled due to the lawyer referral consultant's negligence, the division may assess a $300 reinstatement fee.

(b) No part of a surety bond or certificate of deposit a lawyer referral consultant posts under this section may be withdrawn:

(i) during the one-year period the registration under this chapter is in effect; or

(ii) while a revocation proceeding is pending against the lawyer referral consultant.

(5)

(a) A surety bond or certificate of deposit that a lawyer referral consultant posts under this section may be forfeited if the division revokes the lawyer referral consultant's registration under this chapter.

(b) Notwithstanding Subsection (5)(a), the division may make a claim against a surety bond or certificate of deposit that a lawyer referral consultant posts for money the lawyer referral consultant owes to the division under this chapter without the division first revoking the lawyer referral consultant's registration.

(6) An individual may not disseminate by any means a statement indicating that the individual is a lawyer referral consultant, or proposes to engage in the business of a lawyer referral consultant, unless the individual complies with Subsection (1).

(7) A lawyer referral consultant may not make or authorize the making of an oral or written reference to the lawyer referral consultant's compliance with Subsection (1).

§ 13-68-205 Denial, suspension, or revocation of an application or registration.

(1) the division finds that the denial, suspension, or revocation is in the public interest; and

(2)

(a) the registration is incomplete, false, or misleading; or

(b) the applicant or the applicant's principal:

(i) violates, causes a violation, allows a violation, or fails to satisfy the requirements of a provision of:

(A) this chapter; or

(B) a rule the division makes in accordance with this chapter;

(ii) violates Chapter 11, Utah Consumer Sales Practices Act;

(iii) is enjoined by a court, or is the subject of an administrative or judicial order issued in Utah or another state, if the order:

(A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or

(B) is based on a finding of a lack of integrity, truthfulness, or mental competence;

(iv) is convicted of a crime involving theft, fraud, or dishonesty;

(v) obtains or attempts to obtain a registration by misrepresenting a material fact;

(vi) fails to provide information the division requests;

(vii) fails to pay an administrative fine the division or an administrative or judicial order imposes; or

(viii) fails to pay the fee to file a registration application or a renewal application.

Part 3 Operational Requirements

§ 13-68-301 Requirements for written contract -- Prohibited statements.

(1) A lawyer referral consultant shall provide a client with a written contract before providing a lawyer referral consulting service to the client.

(2) The contents of the written contract described in Subsection (1) shall comply with this section and rules the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(3) A prospective client may cancel a written contract on or before midnight of the third business day after execution of the written contract, excluding weekends and state and federal holidays.

(4) A written contract under this section shall be stated in both English and in the client's native language.

(5) A written contract under this section shall:

(a) state the purpose for which the client hires the lawyer referral consultant;

(b) state the one or more lawyer referral services the lawyer referral consultant will perform;

(d) include a statement printed in 12-point boldface font that the lawyer referral consultant:

(i) is not an attorney; and

(ii) may not perform the legal services that an attorney performs;

(e) include a provision stating that the client may report complaints relating to a lawyer referral consultant to the division, including a telephone number and website;

(f) include a provision stating that complaints concerning the unauthorized practice of law may be reported to the Utah State Bar, including a telephone number and website; and

(g) include a provision stating in boldface on the first page of the written contract: "You may cancel this contract on or before midnight of the third business day after execution of the written contract."

(6) A lawyer referral consultant may not, without some basis in fact:

(a) include in a written contract a guarantee or promise; or

(b) orally represent that the lawyer referral service includes a guarantee or promise.

(7) A written contract is void if not written in accordance with this section.

§ 13-68-302 Accounting for services -- Receipts.

(1)

(a) A lawyer referral consultant shall provide a signed receipt to a client for each payment the client makes.

(b) A receipt described in Subsection (1)(a) shall be typed or computer generated on the lawyer referral consultant's letterhead.

(2) A lawyer referral consultant shall provide a statement of accounting for the lawyer referral services rendered and payments made:

(a) in the client's native language;

(b) that is typed or computer generated on the lawyer referral consultant's letterhead;

(d) that lists the payments made by or on behalf of the client.

§ 13-68-303 Notice to be displayed -- Disclosure to be provided in writing.

(1)

(a) Before providing any services, a lawyer referral consultant shall provide a client with a written disclosure in the native language of the client that includes the following:

(i) the lawyer referral consultant's name, address, and telephone number;

(ii) the lawyer referral consultant's agent for service of process in this state, including the agent's:

(A) name;

(B) street address;

(D) telephone number;

(iii) evidence of compliance with any applicable surety bond or certificate of deposit requirement, including the surety bond or certificate of deposit number; and

(iv) a list of the services that the lawyer referral consultant provides and the current and total fee for each service.

(2) A lawyer referral consultant shall obtain the signature of the client verifying that the client receives the written disclosure described in Subsection (1) before a lawyer referral consultant provides a service.

(3) Except as provided in Subsection (4), a lawyer referral consultant who prints, displays, publishes, distributes, or broadcasts, or who causes to be printed, displayed, published, distributed, or broadcasted, any advertisement for services as a lawyer referral consultant, shall include in that advertisement a clear and conspicuous statement that the lawyer referral consultant is not an attorney.

(4) Subsection (3) does not apply to a person who is not an active member of the Utah State Bar, but is an attorney licensed in another state or territory of the United States.

(5) A person described in Subsection (4) shall include in an advertisement for lawyer referral services a clear and conspicuous statement that the person is not an attorney licensed to practice law in this state, but is an attorney licensed in another state or territory of the United States.

(6) If an advertisement subject to this section is in a language other than English, the statement required by Subsection (3) shall be in the same language as the advertisement.

Part 4 Prohibited Acts and Penalties

§ 13-68-401 Unlawful acts.

(1) It is unlawful for a lawyer referral consultant or another person to:

(a) make, cause, or allow to be made a false or misleading statement to a client or prospective client while providing or soliciting services to that client or prospective client;

(b) make, cause, or allow to be made a guarantee or promise to a client or prospective client, unless the guarantee or promise is in writing and there is basis in fact for making the guarantee or promise;

(c) charge a client a fee for referral of the client to another person for services that the lawyer referral consultant cannot or will not provide to the client;

(d) communicate with a prospective client for the purpose of obtaining or referring business if the communication concerns a disaster, or an action for personal injury or wrongful death, unless:

(i) the disaster, injury, or death occurred more than 30 days before the communication;

(ii) the prospective client is a person who has a prior familial, prior personal, or prior professional relationship with the lawyer to be referred, the lawyer referral consultant, or the person communicating with the prospective client;

(iii) the prospective client initiates the communication; or

(iv) a third party who has a prior familial or prior close personal relationship with the prospective client requests the communication;

(e) represent that the division or the state endorses or approves the lawyer referral consultant;

(f) omit from a filing with the division a material statement of fact that this chapter or a rule the division makes in accordance with this section requires; or

(g) include in a filing with the division a material statement of fact that the lawyer referral consultant or the lawyer referral consultant's principal knows or should know is false, deceptive, inaccurate, or misleading.

(2) A lawyer referral consultant may not translate a document or other information in a way that falsely represents or implies that the lawyer referral consultant is an attorney.

§ 13-68-402 Violations -- Actions by division.

(1) The division shall administer and enforce the provisions of this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(a) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(b) the division may bring an action in a court with jurisdiction to enforce a provision of this chapter.

(3) In an action the division brings in accordance with Subsection (2)(b), the court may:

(a) declare that an act or practice violates a provision of this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured purchaser or consumer;

(e) impose a fine of up to $2,500 for each violation of this chapter; or

(f) award any other relief that the court deems reasonable and necessary.

(4) If a court with jurisdiction grants judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(5)

(a) A person who violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.

(b) A civil penalty authorized under this section may be imposed in any civil action brought by the division.

(6)

(a) A person who intentionally violates this chapter:

(i) is guilty of a class A misdemeanor; and

(ii) may be fined up to $10,000.

§ 13-68-403 Action by attorney general or district or county attorney.

(1) Upon referral from the division, the attorney general or any district or county attorney may:

(a) bring an action for temporary or permanent injunctive or other relief in any court of competent jurisdiction for any violation of this part;

(b) bring an action in any court of competent jurisdiction for the collection of penalties authorized under Subsection 13-68-402(2); or

(2) A court may, upon entry of final judgment, award restitution when appropriate to any person suffering loss because of a violation of this part if proof of loss is submitted to the satisfaction of the court.

§ 13-68-404 Recovery of losses.

In addition to any other remedies, a person that suffers pecuniary loss because of a violation by another person of this chapter may bring an action in any court with jurisdiction and may recover:

(1) the greater of:

(a) $500; or

(b) twice the amount of the pecuniary loss; and

(2) court costs and reasonable attorney fees as the court determines.

Chapter 69 Fiduciary Duty for Certain Providers of Legal Services

Part 1 General Provisions

§ 13-69-101 Definitions.

As used in this chapter:

(1) "Business entity" means a sole proprietorship, partnership, limited partnership, limited liability company, corporation, or other legal entity that is:

(a) used to carry on a business for profit; and

(b) a participant in the sandbox.

(2) "Court rule" means rules of procedure, evidence, or practice for use of the courts of this state.

(3) "Out-of-state attorney" means an individual admitted and licensed to practice law in another state or territory of the United States who is authorized by court rule to practice law in this state without being admitted and licensed to practice law in this state.

(4) "Participant" means a business entity or a business entity's officer, director, partner, or employee that provides legal services under the sandbox:

(a) to a person other than the business entity; and

(b) for the business entity's profit.

(5) "Sandbox" means the regulatory sandbox program established by the Utah Supreme Court for authorizing nontraditional legal service providers to practice law on a limited and temporary basis under Utah Supreme Court Rule of Professional Practice 14-802.

Chapter 70 Automatic Renewal Contracts Act

Part 1 General Provisions

§ 13-70-101 Definitions.

As used in this chapter:

(1) "Automatic renewal provision" means a provision under a contract that is automatically renewed at the end of a definite, paid term for a subsequent, paid term that is longer than 45 days.

(2) "Clearly and conspicuously disclose" means to disclose:

(a) in print:

(i) in larger font than the surrounding text;

(ii) in contrasting type, font, or color to the surrounding text of the same size; or

(iii) in a manner set off from the surrounding text of the same size by symbols or other marks that clearly call attention to the language; or

(b) through audio, in a volume and cadence sufficient to be readily audible and understandable.

(3) "Division" means the Division of Consumer Protection established in Section 13-2-102.

(4) "Rental agreement" means any agreement, written or oral, which establishes or modifies the terms, conditions, rules, or any other provisions regarding the use or occupancy of real property for residential or commercial purposes.

(5) "Trial period offer" means an offer to provide a period of time to sample or use a product or service without payment.

Part 2 Automatic Renewal Contract

§ 13-70-201 Automatic renewal provisions -- Trial period offers -- Notice -- Exceptions.

(1) Except as provided in Subsection (3), a person who provides an individual a product or service under a contract with an automatic renewal provision shall provide a notice to the individual, at least 30 but not more than 60 days before the day on which the automatic renewal provision renews, that clearly and conspicuously discloses:

(a) the renewal date;

(b) the total renewal cost; and

(2) Except as provided in Subsection (3), a person who provides an individual a trial period offer shall provide a notice to the individual, at least three days before the day on which the period of time under the trial period offer expires, that clearly and conspicuously discloses:

(a) the trial period offer expiration date;

(b) the price to be charged for the product or service, or any further purchase obligations to be imposed on the individual, after the expiration date; and

(3) This section does not apply to:

(a) any individual or entity regulated under Title 31A, Insurance Code, or an affiliate of the individual or entity;

(b) a person providing a service contract, as defined in Section 31A-6a-101;

(c) a financial institution or an affiliate of a financial institution regulated under Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. Sec. 6801 et seq.;

(d) a public utility, as defined in Section 54-2-1;

(e) an entity or affiliate of the entity that provides services regulated by the Federal Communications Commission, Federal Energy Regulatory Commission, or Federal Professional Services Council;

(f) a rental agreement; or

(g) an agreement for property management, as defined in 61-2f-102.

(4) An automatic renewal provision that violates this section is void.

Part 3 Enforcement

§ 13-70-301 Administration and enforcement -- Division powers -- Fees -- Rulemaking.

(1) The division shall administer and enforce this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(a) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(b) the division may bring a civil action to enforce this chapter.

(3) In a civil action by the division to enforce this chapter, the court may:

(a) declare that an act or practice violates this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured individual;

(e) impose a civil penalty of up to $2,500 for each violation of this chapter; or

(f) award any other relief that the court deems reasonable and necessary.

(4) If a court grants judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(5)

(a) A person that violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.

(b) A civil penalty authorized under this section may be imposed in a civil action brought by the division.

(6) The division may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to enforce this chapter.

Chapter 71 Utah Minor Protection in Social Media Act

Part 1 General Provisions

§ 13-71-101 Definitions.

(1) "Account holder" means a person who has, creates, or opens an account or profile to use a social media service.

(2) "Age assurance system" means measures reasonably calculated to enable a social media company to identify whether a current or prospective Utah account holder is a minor with an accuracy rate of at least 95%.

(3) "Connected account" means an account on the social media service that is directly connected to:

(a) the minor account holder's account; or

(b) an account that is directly connected to an account directly connected to the minor account holder's account.

(4) "Content" means any information, visual depictions, tools, features, links, software, or other materials that appear on or are available or enabled through a social media service.

(5) "Directly connected" means an account on the social media service that is connected to another account by:

(a) sending a request to connect to another account holder and having the request to connect accepted by the other account holder; or

(b) receiving a request to connect from another account holder and accepting the request to connect.

(6) "Director" means the director of the division.

(7) "Division" means the Division of Consumer Protection created in Section 13-2-102.

(8) "Minor" means an individual under 18 years old that:

(a) has not been emancipated as that term is defined in Section 80-7-102; or

(b) has not been married.

(9) "Parent" includes a legal guardian.

(10)

(a) "Personal information" means information that is linked or can be reasonably linked to an identified individual or an identifiable individual.

(b) "Personal information" includes a person's:

(i) first and last name;

(ii) date of birth;

(iii) home or physical address, including street name and city;

(iv) screen or user name that reveals an individual's email address, first name, or last name;

(v) telephone number;

(vi) social security number;

(vii) photograph, video, or audio file containing a person's image or voice;

(viii) geolocation information sufficient to identify street name and city; and

(ix) any other identifier that a person may use to contact a specific individual.

(11) "Push notification" means an automatic electronic message displayed on an account holder's device, when the user interface for the social media service is not actively open or visible on the device, that prompts the account holder to repeatedly check and engage with the social media service.

(12) "Resident" means the same as that term is defined in Section 53-3-102.

(13) "Social media company" means an entity that owns or operates a social media service.

(14)

(a) "Social media service" means a public website or application that:

(i) displays content that is primarily generated by account holders and not by the social media company;

(ii) permits an individual to register as an account holder and create a profile that is made visible to the general public or a set of other users defined by the account holder;

(iii) connects account holders to allow users to interact socially with each other within the website or application;

(iv) makes available to each account holder a list or lists of other account holders with whom the account holder shares a connection within the system; and

(v) allows account holders to post content viewable by other users.

(b) "Social media service" does not include:

(i) email;

(ii) cloud storage; or

(iii) document viewing, sharing, or collaboration services.

(15) "User" means an individual who accesses or uses a social media service.

(16)

(a) "Utah account holder" means a person who is a Utah resident and an account holder.

(b) "Utah account holder" includes a Utah minor account holder.

(17) "Utah minor account holder" means a Utah account holder who is a minor.

(18) "Verifiable parental consent" means authorization from a parent for a social media service to collect, use, and disclose personal information of a Utah minor account holder, that complies with the following verifiability requirements:

(a) the social media service shall provide advance notice to the parent describing information practices related to the minor account holder's personal information; and

(b) the social media service shall receive confirmation that the parent received the notice described in Subsection (18)(a).

§ 13-71-102 Legislative findings.

The Legislature finds that:

(1) the state has a compelling interest in safeguarding the well-being and privacy of minors in the state;

(2) the proliferation of social media services has led to the widespread collection and utilization of personal information, exposing minors to potential privacy and identity related harms;

(3) the addictive design features of certain social media services contribute to excessive use of a social media service by minors, impacting sleep patterns, academic performance, and overall health;

(4) social media services are designed without sufficient tools to allow adequate parental oversight, exposing minors to risks that could be mitigated with proper parental involvement and control;

(5) the state has enacted safeguards around products and activities that pose risks to minors, including regulations on motor vehicles, medications, and products and services targeted to children;

(6) prolonged and unregulated social media use has been linked to adverse effects on the mental health of minors, including increased rates of anxiety, depression, and social isolation;

(7) existing measures employed by social media companies to protect minors have proven insufficient; and

(8) the state should ensure that minors' personal data is given special protection, as minors may have less awareness of the risks, consequences, and safeguards related to a social media company's processing of minors' personal data.

Part 2 General Requirements

§ 13-71-201 Age assurance required.

(1) A social media company shall implement an age assurance system to determine whether a current or prospective Utah account holder on the social media company's social media service is a minor.

(2) A Utah account holder that the social media company identifies as a minor through the use of an age assurance system is subject to the requirements in Sections 13-71-202 and 13-71-203.

(3) A social media company shall:

(a) implement a review process allowing account holders to appeal the account holder's age designation by submitting documentary evidence to establish the account holder's age range; and

(b) review evidence submitted by the account holder and make a determination within 30 days of submission of the evidence.

(4) A social media company shall segregate any personal information gathered specifically within the age assurance system and shall not use the personal information for any other purposes except for the purposes listed in Subsections 13-71-204(4)(a) through (f).

§ 13-71-202 Requirements for Utah minor account holders.

A social media company shall, for Utah minor account holders on the social media service:

(1) set default privacy settings to prioritize maximum privacy, including settings that:

(a) restrict the visibility of a Utah minor account holder's account to only connected accounts;

(b) limit the Utah minor account holder's ability to share content to only connected accounts;

(c) restrict any data collection and sale of data from a Utah minor account holder's account that is not required for core functioning of the social media service;

(d) disable search engine indexing of Utah minor account holder profiles;

(e) restrict a Utah minor account holder's direct messaging capabilities to only allow direct messaging to connected accounts; and

(f) allow a Utah minor account holder to download a file with all information associated with the Utah minor account holder's account;

(2) implement and maintain reasonable security measures, including data encryption, to protect the confidentiality, security, and integrity of personal information collected from a Utah minor account holder;

(3) provide an easily accessible and understandable notice that:

(a) describes any information the social media company collects from a Utah minor account holder; and

(b) explains how the information may be used or disclosed;

(4) upon request of a Utah minor account holder:

(a) delete the personal information of the Utah minor account holder, unless the information is required to be retained under Section 13-61-203, or a different provision of state or federal law; and

(b) remove any information or material the Utah minor account holder made publicly available through the social media service; and

(5) disable the following features that prolong user engagement:

(a) autoplay functions that continuously play content without user interaction;

(b) scroll or pagination that loads additional content as long as the user continues scrolling; and

§ 13-71-203 Supervisory tools.

(1) A social media company shall offer supervisory tools for a Utah minor account holder that the Utah minor account holder may decide to activate.

(2) The supervisory tools described in Subsection (1) shall include capabilities for an individual selected by the Utah minor account holder to:

(a) set time limits for the Utah minor account holder's daily social media service usage across devices;

(b) schedule mandatory breaks for the Utah minor account holder during selected days and times across devices;

(i) data detailing the Utah minor account holder's total and average daily time spent on the social media service across devices;

(ii) a list of connected accounts;

(iii) a list of accounts blocked by the Utah minor account holder;

(iv) the Utah minor account holder's:

(A) privacy settings;

(B) content sensitivity settings; and

(d) receive notifications when the Utah minor account holder changes an account setting described in this Subsection (2).

§ 13-71-204 Parental consent -- Data privacy for Utah minor accounts.

(1) A social media company may not allow a Utah minor account holder to change the default data privacy setting described in Subsection 13-71-202(1) without first obtaining verifiable parental consent.

(2) A social media company's terms of service related to a Utah minor account holder shall be presumed to include an assurance of confidentiality for the Utah minor account holder's personal information.

(3) The presumption of confidentiality in Subsection (2) may be overcome if the social media company obtains verifiable parental consent.

(4) The presumption of confidentiality in Subsection (2) does not apply to a social media company's internal use or external sharing of a Utah minor account holder's personal information if the use or sharing is necessary to:

(a) maintain or analyze functioning of the social media service;

(b) enable network communications;

(d) display a username chosen by the Utah minor account holder;

(e) obtain age assurance information as required under Section 13-71-201; or

(f) comply with the requirements of this chapter or other federal or state laws.

Part 3 Division Enforcement Powers

§ 13-71-301 Enforcement powers.

(1) The division shall administer and enforce the provisions of Part 2, General Requirements, in accordance with Chapter 2, Division of Consumer Protection.

(2) The attorney general, upon request, shall give legal advice to, and act as counsel for, the division in the exercise of the division's responsibilities under this part.

(3)

(a) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(i) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(ii) the division may bring an action in court to enforce a provision of this chapter.

(b) In a court action by the division to enforce a provision of this chapter, the court may:

(i) declare that the act or practice violates a provision of this chapter;

(ii) enjoin actions that violate this chapter;

(iii) order disgorgement of any money received in violation of this chapter;

(iv) order payment of disgorged money to an injured purchaser or consumer;

(v) impose a civil penalty of up to $2,500 for each violation of this chapter;

(vi) award actual damages to an injured purchaser or consumer; and

(vii) award any other relief that the court deems reasonable and necessary.

(i) reasonable attorney fees;

(ii) court costs; and

(iii) investigative fees.

(4)

(a) A person who violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.

(b) A civil penalty authorized under this section may be imposed in any civil action brought by the division, or by the attorney general on behalf of the division.

(5) All money received for the payment of a fine or civil penalty imposed under this section shall be deposited into the Consumer Protection Education and Training Fund established in Section 13-2-109.

§ 13-71-302 Age assurance and verifiable parental consent safe harbor.

(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division shall make rules:

(a) to establish processes and means by which a social media company may:

(i) assure whether an account holder is a minor in accordance with Section 13-71-201; and

(ii) obtain verifiable parental consent in accordance with Section 13-71-203; and

(b) to establish criteria a social media company may use to determine whether the social media company's age assurance system is 95% accurate.

(2) A social media company is not subject to an enforcement action for a violation of Section 13-71-201 if the social media company implements and maintains an age assurance system that complies with rules made by the division as described in Subsection (1)(a)(i).

(3) A social media company is considered to have obtained verifiable parental consent if the social media company obtains parental consent through a mechanism that complies with the rules made by the division as described in Subsection (1)(a)(ii).

Part 4 Severability

§ 13-71-401 Severability.

(1) If any provision of this chapter or the application of any provision to any person or circumstance is held invalid by a final decision of a court of competent jurisdiction, the remainder of this chapter shall be given effect without the invalid provision or application.

(2) The provisions of this chapter are severable.

(3) Nothing in this chapter shall displace any other available remedies or rights authorized under the laws of this state or the United States.

Chapter 72 Artificial Intelligence Policy Act

Part 1 General Provisions

§ 13-72-101 Definitions.

As used in this chapter:

(1) "Agency" means the same as that term is defined in Section 63G-4-103.

(2) "Agency head" means the same as that term is defined in Section 63G-4-103.

(3) "Artificial intelligence" means a machine-based system that makes predictions, recommendations, or decisions influencing real or virtual environments.

(4) "Artificial intelligence technology" means a computer system, application, or other product that uses or incorporates one or more forms of artificial intelligence.

(5) "Audit" means the same as that term is defined in Section 63G-2-103.

(6) "Demonstration period" means the period during which:

(a) regulatory mitigation is in effect in accordance with the terms of a regulatory mitigation agreement; or

(b) joint interpretation is in effect in accordance with the terms of a joint interpretation agreement.

(7) "Department" means the Department of Commerce.

(8) "Director" means the director of the office.

(9) "Executive director" means the executive director of the Department of Commerce.

(10) "Governmental entity" means:

(a) the judiciary;

(b) a state-funded institution of higher education or public education; or

(11) "Governmental entity head" means the individual or body with ultimate executive or administrative authority over a governmental entity.

(12) "Joint interpretation agreement" means an agreement between a participant, the office, and a relevant agency or governmental entity that clarifies the application of a provision of state law or rule to artificial intelligence technology.

(13) "Learning agenda" means the areas of artificial intelligence applications, risks, and policy considerations selected by the office for focus by the learning laboratory.

(14) "Learning laboratory" means the artificial intelligence analysis and research program created in Section 13-72-301.

(15) "Office" means the Office of Artificial Intelligence Policy created in Section 13-72-201.

(16) "Participant" means a person seeking or holding a regulatory mitigation agreement or a joint interpretation agreement with the office.

(17) "Political subdivision" means the same as that term is defined in Section 63G-7-102.

(18) "Regulatory mitigation agreement" means an agreement between a participant, the office, and a relevant agency or a governmental entity described in Section 13-72-401 that:

(a) permits a participant to use or deploy artificial intelligence technology despite a law or rule that might impede or interfere with that use or deployment; and

(b)

(i) sets terms and conditions related to any cure period or similar remedies before penalties may be assessed;

(ii) provides for reduced civil fines during the demonstration period; or

(iii) sets other terms and conditions tailored to identified issues of the artificial intelligence technology, including reporting requirements and safeguards necessary for safe and successful use or deployment.

Part 2 Office of Artificial Intelligence Policy

§ 13-72-201 Creation of Office of Artificial Intelligence Policy -- Director appointed -- Duties and authority.

(1) There is created in the department the Office of Artificial Intelligence Policy.

(2) The executive director of the department shall appoint a director to oversee the management and operations of the office.

(3) The office shall:

(a) create and administer an artificial intelligence learning laboratory program;

(b) consult with businesses and other stakeholders in the state about potential regulatory proposals;

(i) required participant disclosures to consumers;

(ii) reporting requirements for participants to the office;

(iii) criteria for limited extension of the participation period; and

(iv) other requirements necessary to administer the learning laboratory; and

(d) report annually, before November 30, to the Business and Labor Interim Committee regarding:

(i) the proposed learning agenda for the learning laboratory;

(ii) the findings, participation, and outcomes of the learning laboratory;

(iii) any regulatory mitigation or joint interpretation agreements executed by the office; and

(iv) recommended legislation from findings from the learning laboratory.

(4) The office may develop and publish guidance and other resources, including best practices, to inform and educate Utah consumers about artificial intelligence technology.

Part 3 Artificial Intelligence Learning Laboratory Program

§ 13-72-301 Artificial Intelligence Learning Laboratory Program.

(1) There is established the Artificial Intelligence Learning Laboratory Program, to be administered by the office.

(2) The purpose of the learning laboratory is to:

(a) analyze and research the risks, benefits, impacts, and policy implications of artificial intelligence technologies to inform the state regulatory framework;

(b) encourage responsible deployment of artificial intelligence technologies in the state;

(c) evaluate the effectiveness and viability of current, potential, or proposed regulation on artificial intelligence technologies with artificial intelligence companies; and

(d) produce findings and recommendations for legislation and regulation of artificial intelligence.

(3)

(a) The office shall periodically set a learning agenda for the learning laboratory that establishes the specific areas of artificial intelligence policy the office intends to study.

(b) In establishing the learning agenda, the office may consult with individuals from:

(i) relevant agencies;

(ii) governmental entities;

(iii) relevant industries;

(iv) academic institutions in the state; and

(v) other public or private entities with relevant knowledge, experience, or expertise in the area.

(i) the individual's knowledge of artificial intelligence technology and applications;

(ii) the individual's expertise in artificial intelligence policy; and

(iii) the individual's relevant experience.

Part 4 Regulatory Mitigation And Joint Interpretation Agreements

§ 13-72-401 Regulatory mitigation agreements and joint interpretation agreements.

(1) A participant who uses or wants to utilize an artificial intelligence technology in the state may apply for a regulatory mitigation agreement or a joint interpretation agreement according to criteria and procedures outlined by the office by rule made under Section 13-72-201.

(2) The office may grant, on a temporary basis, regulatory mitigation to a participant by entering into a regulatory mitigation agreement or a joint interpretation agreement with the office and relevant agency heads or governmental entity heads.

(3) To receive a regulatory mitigation agreement or a joint interpretation agreement, a participant must demonstrate that the participant meets eligibility criteria established in Section 13-72-402.

(4) A regulatory mitigation agreement or a joint interpretation agreement between a participant and the office and relevant agencies or governmental entities shall specify:

(a) limitations on scope of the use of the participant's artificial intelligence technology, which may include:

(i) the number and types of users;

(ii) geographic limitations; and

(iii) other limitations to implementation;

(b) safeguards to be implemented;

(d) any required disclosures to consumers; and

(e) reporting requirements to comply with audits from the office.

(5) The office shall consult with relevant agencies and governmental entities regarding appropriate terms in a regulatory mitigation agreement or a joint interpretation agreement.

(6) The office shall perform regular audits of a participant's application of artificial intelligence technology while a regulatory mitigation agreement or a joint interpretation agreement remains in effect.

(7) A participant remains subject to all legal and regulatory requirements not expressly waived or modified by the terms of the regulatory mitigation agreement or clarified in a joint interpretation agreement.

(8)

(a) The office may terminate a regulatory mitigation agreement or a joint interpretation agreement at any time and for any reason, and the participant does not have an expectation of a property right or license to participate in the learning laboratory.

(b) A participant using or deploying an artificial intelligence technology that violates legal or regulatory requirements or the terms of a regulatory mitigation agreement or a joint interpretation agreement may be immediately removed from further participation and subject to all applicable civil and criminal penalties.

(9) Participation in the learning laboratory, including signing a regulatory mitigation agreement or joint interpretation agreement, does not constitute an endorsement or approval from the state.

(10) The state shall not be responsible for any claims, liabilities, damages, losses, or expenses arising out of a participant's:

(a) involvement in the learning laboratory; or

(b) actions taken in accordance with a regulatory mitigation agreement or joint interpretation agreement.

§ 13-72-402 Regulatory mitigation and joint interpretation agreement eligibility requirements -- Application evaluation and admission.

(1) To be eligible for a regulatory mitigation agreement or a joint interpretation agreement, a participant shall demonstrate to the office that:

(a) the participant has the technical expertise and capability to responsibly develop, implement, and use or supervise the use of the proposed artificial intelligence technology;

(b) the participant has sufficient financial resources to meet obligations during testing;

(c) the artificial intelligence technology provides potential substantial consumer benefits that may outweigh identified risks from mitigated enforcement of regulations;

(d) the participant has an effective plan to monitor and minimize identified risks from testing; and

(e) the scale, scope, and duration of proposed testing is appropriately limited based on risk assessments.

(2) To evaluate whether a participant meets eligibility criteria to obtain a regulatory mitigation agreement or a joint interpretation agreement, the office may consult with relevant agencies, governmental entities, and outside experts regarding the application.

§ 13-72-403 Agreement extension.

(1) The demonstration period for an initial regulatory mitigation agreement or a joint interpretation agreement may not exceed 12 months.

(2) A participant may request a 12-month extension of the demonstration period for any regulatory mitigation agreement or joint interpretation agreement no later than 30 days before the end of the ongoing demonstration period.

(3) The office shall grant or deny an extension request before expiration of an ongoing demonstration period.

(4) The office may grant up to two extensions for any regulatory mitigation or joint interpretation agreement.

Chapter 72a Artificial Intelligence Applications Relating to Mental Health

Part 1 General Provisions

§ 13-72a-101 Definitions.

As used in this chapter:

(1) "Artificial intelligence" means the same as that term is defined in Section 13-72-101.

(2) "Artificial intelligence technology" means the same as that term is defined in Section 13-72-101.

(3) "Confidential communications" means the same as that term is defined in Section 58-60-102.

(4) "Covered entity" means the same as that term is defined in 45 C.F.R. Sec. 160.103.

(5) "Division" means the Division of Consumer Protection created in Section 13-2-102.

(6) "Generative artificial intelligence" means an artificial intelligence technology system that:

(a) is trained on data;

(b) is designed to simulate human conversation with a consumer through one or more of the following:

(i) text;

(ii) audio; or

(iii) visual communication; and

(7) "Health care provider" means the same as that term is defined in 45 C.F.R. Sec. 160.103.

(8) "Health plan" means the same as that term is defined in 45 C.F.R. Sec. 160.103.

(9) "Individually identifiable health information" means any information, whether oral or recorded in any form or medium, that relates to the physical or mental health or condition of an individual.

(10)

(a) "Mental health chatbot" means an artificial intelligence technology that:

(i) uses generative artificial intelligence to engage in interactive conversations with a user of the mental health chatbot similar to the confidential communications that an individual would have with a licensed mental health therapist; and

(ii) a supplier represents, or a reasonable person would believe, can or will provide mental health therapy or help a user manage or treat mental health conditions.

(b) "Mental health chatbot" does not include artificial intelligence technology that only:

(i) provides scripted output, such as guided meditations or mindfulness exercises; or

(ii) analyzes an individual's input for the purpose of connecting the individual with a human mental health therapist.

(11) "Mental health therapist" means the same as that term is defined in Section 58-60-102.

(12) "Personal data" means the same as that term is defined in Section 63A-19-101.

(13) "Scientific research development" means research:

(a) conducted by a researcher affiliated with:

(i) an institution of higher education;

(ii) a research organization; or

(iii) a healthcare facility; and

(b) that is:

(i) approved by an institutional review board; and

(ii) conducted in accordance with applicable ethics requirements for human subject research.

(14) "Supplier" means the same as that term is defined in Section 13-11-3.

(15) "User input" means content provided to a mental health chatbot by a Utah user.

(16) "Utah user" means an individual located in the state at the time the individual accesses or uses a mental health chatbot.

Part 2 Protections for Users of Mental Health Chatbots

§ 13-72a-201 Protection of personal information.

(1) A supplier of a mental health chatbot may not sell to or share with any third party any:

(a) individually identifiable health information of a Utah user; or

(b) user input of a Utah user.

(2) Subsection (1) does not apply to individually identifiable health information:

(a) requested by a health care provider with the consent of the Utah user;

(b) provided to a health plan of a Utah user upon request of the Utah user; or

(3)

(a) A supplier may share individually identifiable health information necessary to ensure the effective functionality of the mental health chatbot with another party with which the supplier has a contract related to such functionality.

(b) When sharing information under Subsection (3)(a), the supplier and the other entity shall comply with all applicable privacy and security provisions of 45 C.F.R. Part 160 and 45 C.F.R. Part 164, Subparts A and E, as if the supplier were a covered entity and the other entity were a business associate, as such terms are defined in 45 C.F.R. 160.103.

§ 13-72a-202 Restrictions on advertising.

(1) A supplier may not use a mental health chatbot to advertise a specific product or service to a Utah user in a conversation between the Utah user and the mental health chatbot unless the mental health chatbot:

(a) clearly and conspicuously identifies the advertisement as an advertisement; and

(b) clearly and conspicuously discloses to the Utah user any:

(i) sponsorship;

(ii) business affiliation; or

(iii) agreement that the supplier has with a third party to promote, advertise, or recommend the product or service.

(2) A supplier of a mental health chatbot may not use a Utah user's input to:

(a) determine whether to display an advertisement for a product or service to the Utah user, unless the advertisement is for the mental health chatbot itself;

(b) determine a product, service, or category of product or service, to advertise to the Utah user; or

(3) This section does not prohibit a mental health chatbot from recommending that a Utah user seek counseling, therapy, or other assistance from a licensed professional, including a specific licensed professional.

§ 13-72a-203 Disclosure requirements.

(1) A supplier of a mental health chatbot shall cause the mental health chatbot to clearly and conspicuously disclose to a Utah user that the mental health chatbot is an artificial intelligence technology and not a human.

(2) The disclosure described in Subsection (1) shall be made:

(a) before the Utah user may access the features of the mental health chatbot;

(b) at the beginning of any interaction with the Utah user if the Utah user has not accessed the mental health chatbot within the previous seven days; and

(c) any time a Utah user asks or otherwise prompts the mental health chatbot about whether artificial intelligence is being used.

§ 13-72a-204 Violations -- Enforcement authority.

(1) The division shall administer and enforce the provisions of this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(a) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(b) the division may bring an action in a court of competent jurisdiction to enforce a provision of this chapter.

(3) In a court action by the division to enforce a provision of this chapter, the court may:

(a) declare that an act or practice violates a provision of this chapter;

(b) issue an injunction for a violation of this part;

(d) order payment of disgorged money to an injured purchaser or consumer;

(e) impose a fine of up to $2,500 for each violation of this chapter; or

(f) award other relief that the court determines reasonable and necessary.

(4) If a court awards judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(5) A court may impose a civil penalty of no more than $5,000 for each violation of an administrative or court order issued for a violation of this chapter.

(6) A court may impose a civil penalty authorized under this section in a civil action brought by the division.

(7) The division shall deposit all fines and civil penalties collected under this section into the Consumer Protection Education and Training Fund created in Section 13-2-109.

Part 3 Severability

§ 13-72a-301 Severability.

(1) If any provision of this chapter or the application of any provision of this chapter to any person or circumstance is held invalid by a final decision of a court of competent jurisdiction, the remainder of this chapter shall be given effect without the invalid provision or application.

(2) The provisions of this chapter are severable.

Chapter 72b Digital Voyeurism Prevention Act

Part 1 General Provisions

§ 13-72b-101 Definitions.

As used in this chapter:

(1) "Artificial intelligence technology" means the same as that term is defined in Section 13-72-101.

(2) "Consent" means express permission, freely and voluntarily given by an identifiable individual, with full knowledge of the nature and purpose of the generation of an intimate image depicting the individual, where the consent:

(a) is specific to the particular intimate image being generated;

(b) is obtained before the generation of the intimate image; and

(3) "Counterfeit intimate image" means a "digital forgery" as that term is defined in the Take It Down Act.

(4) "Covered platform" means the same as that term is defined in Section 3 of the Take It Down Act, Public Law 119-12, 139 Stat. 59, codified at 47 U.S.C. 230 note.

(5)

(a) "Distribute" means to sell, exhibit, display, publish, provide, give, provide access to, or otherwise transfer a counterfeit intimate image, with or without consideration.

(b) "Distribute" includes the generation of a counterfeit intimate image by a generation service and the subsequent provision of that counterfeit intimate image to the user.

(6) "Generate" means to create, produce, compose, materially edit, or facilitate the creation of an intimate image through the use of artificial intelligence technology.

(7) "Generation service" means a person that operates, maintains, or provides an interactive computer service that:

(a) enables users to generate intimate images;

(b) processes user image generation requests through servers, computer systems, or computing resources controlled by the service operator rather than solely on the user's local device; and

(8) "Identifiable individual" means an individual who is recognizable as an actual human individual by the human individual's face, likeness, or other distinguishing characteristic, including a unique physical feature or other recognizable attribute.

(9) "Interactive computer service" means the same as that term is defined in 47 U.S.C. Sec. 230(f)(2).

(10) "Intimate image" means an "intimate visual depiction" as those terms are defined in the Take It Down Act.

(11) "Reasonable expectation of privacy" means an individual's expectation that:

(a) the individual's body will not be viewed, recorded, or depicted in an intimate image without the individual's knowledge and consent; and

(b) an intimate image of the individual will not be generated, created, distributed, or manipulated without the individual's knowledge and consent.

(12) "Sexually explicit conduct" means the same as that term is defined in 18 U.S.C. Sec. 2256(2)(A).

(13) "Take It Down Act" means the Tools to Address Known Exploitation by Immobilizing Technological Deepfakes on Websites and Networks Act, Public Law 119-12, codified at 47 U.S.C. Sec. 230 note.

Part 2 Generation Services

§ 13-72b-201 Unlawful distribution of non-consensual counterfeit intimate images.

(1) The distribution of a counterfeit intimate image by a generation service without the consent of the identifiable individual depicted in the image is a violation of the individual's reasonable expectation of privacy.

(2) A generation service may not distribute a counterfeit intimate image without first obtaining consent from the identifiable individual depicted in the counterfeit intimate image.

(3) To obtain consent sufficient to meet the requirements of Subsection (2), a generation service shall implement and maintain a consent system that:

(a) requires the identifiable individual depicted in the counterfeit intimate image to affirmatively provide consent before the counterfeit intimate image is distributed;

(b) assures the identity of the individual providing consent with reasonable accuracy; and

(4) A generation service may not require an individual to disclose personally identifiable information beyond what is reasonably necessary to assure the individual's identity and obtain valid consent.

§ 13-72b-202 Civil liability for generation services.

(1) A person, or the heirs of a deceased person, who has been injured by a violation recognized in Section 13-72b-201 may bring a civil action against the generation service that committed the violation.

(2) If in an action described in Subsection (1) the court finds the defendant is violating or has violated any provision of Section 13-72b-201, the court shall:

(a) enjoin the defendant from continuing the violation; and

(b) order the defendant to remove or destroy any counterfeit intimate image distributed in violation of Section 13-72b-201 and all copies of the counterfeit intimate image within the defendant's possession or control.

(3) It is not necessary that actual damages to the plaintiff be alleged or proved in an action under this section.

(4) A plaintiff in an action under this section is entitled to recover:

(a) actual damages sustained, if any, including damages for emotional distress;

(b) punitive damages, if the violation is found to be willful, reckless, or malicious; and

(5) Each distribution of a counterfeit intimate image depicting an identifiable individual without consent constitutes a separate violation.

(6) The statute of limitations for a civil action under this section is the later of:

(a) three years from the date the plaintiff discovered or reasonably should have discovered the violation; or

(b) 10 years from the date of the violation.

§ 13-72b-203 Safe harbor for generation services.

(1) A generation service is not liable under Section 13-72b-202 if the generation service demonstrates that:

(a) the generation service does not hold itself out as providing services for creating counterfeit intimate images;

(b) the generation service has implemented and maintains a written policy that:

(i) prohibits the generation and distribution of non-consensual counterfeit intimate images;

(ii) includes reasonable safeguards designed to prevent the creation of counterfeit intimate images; and

(iii) includes procedures for responding to reports of violations;

(c) the generation service acted in accordance with the policy described in Subsection (1)(b) with respect to the alleged violation;

(d) the generation service published the policy described in Subsection (1)(b) in a clear and conspicuous location accessible to the public on the generation service's website or primary user interface;

(e) the generation service published a general description of the reasonable safeguards described in Subsection (1)(b)(ii), which may describe technical measures in general terms without disclosing proprietary implementation details that could be exploited to circumvent the safeguards;

(f) the generation service implemented and maintained a consent system that complies with Subsection 13-72b-201(3); and

(g) upon receiving notice that a counterfeit intimate image was created or distributed without consent, the generation service took prompt action to prevent further distribution.

(2) A generation service qualifies for the safe harbor under Subsection (1) even if a non-consensual counterfeit intimate image was distributed through the service if the generation service demonstrates that:

(a) the generation service had no actual knowledge that the image was created or distributed without consent before receiving notice;

(b) the generation service's consent system was operating as designed;

(d) upon discovering the violation, the generation service took prompt action to prevent further distribution.

(3) A generation service that has implemented and maintains a written policy and reasonable technical safeguards that categorically prevent the generation of intimate images by the service is not required to comply with the consent requirements in Subsections (1)(b), (1)(c), (1)(e), (1)(f), (2)(b), and (2)(c) to qualify for safe harbor protection under this section.

(4) In determining whether a generation service qualifies for safe harbor protection under this section, the court shall, among other relevant factors, consider whether the generation service's safeguards and policies:

(a) are consistent with widely accepted industry standards;

(b) are regularly updated to address emerging technologies and methods for creating counterfeit intimate images;

(d) include reasonable measures to ensure that users are not attempting to circumvent the safeguards.

(5) A generation service may assert the safe harbor protections under this section by motion before trial and is not required to proceed to trial to establish eligibility for the safe harbor.

§ 13-72b-204 Heightened pleading standard for actions against generation services.

(1) In any action brought under Section 13-72b-202 against a generation service, the complaint shall plead with particularity facts establishing that the generation service does not qualify for safe harbor protection under Section 13-72b-203.

(2) To meet the pleading requirements of Subsection (1), the plaintiff shall include specific factual allegations, including dates, communications, and other evidence, demonstrating that the generation service does not qualify for safe harbor protection under Section 13-72b-203, including facts showing one or more of the following:

(a) that the generation service holds itself out as providing services for creating counterfeit intimate images;

(b) that the generation service failed to implement a written policy that:

(i) prohibits the generation and distribution of non-consensual counterfeit intimate images;

(ii) includes reasonable safeguards designed to prevent the creation of counterfeit intimate images; and

(iii) includes procedures for responding to reports of violations;

(c) that the generation service distributed a counterfeit intimate image depicting the plaintiff without requesting or obtaining the plaintiff's consent;

(d) that the generation service had actual knowledge that a counterfeit intimate image was created or distributed without consent and failed to take prompt action to prevent further distribution; or

(e) that the generation service intentionally designed the service to facilitate the creation of non-consensual counterfeit intimate images.

(3) General or conclusory allegations that a generation service violated this part are insufficient to state a claim.

(4) If a complaint fails to meet the pleading requirements of this section, the court shall dismiss the action without prejudice.

(5) A generation service may bring a motion to dismiss under this section before filing an answer or other responsive pleading.

(6) If the court grants a motion to dismiss under this section and the plaintiff files an amended complaint that again fails to meet the pleading requirements of this section, the court shall:

(a) dismiss the action with prejudice; and

(b) award the generation service reasonable attorney fees and costs incurred in bringing the motion to dismiss the amended complaint.

§ 13-72b-205 Transparency and reporting requirements.

(1) A generation service shall take reasonable measures to inform users that:

(a) distribution of non-consensual counterfeit intimate images is prohibited;

(b) violations of this part may result in civil liability; and

(2) A generation service shall clearly and conspicuously provide to users procedures for reporting violations to the generation service.

(3) A generation service shall publish in a clear and conspicuous location on the generation service's website or primary user interface:

(a) the written policy required by Subsection 13-72b-203(1)(b); and

(b) a general description of the safeguards implemented to prevent the generation of non-consensual counterfeit intimate images, which may describe technical measures in general terms without disclosing proprietary implementation details that could be exploited to circumvent the safeguards.

Part 3 Covered Platforms

§ 13-72b-301 Unlawful distribution of non-consensual counterfeit intimate images on platforms.

(1) A covered platform may not knowingly allow the distribution of a counterfeit intimate image without consent from the identifiable individual depicted in the counterfeit intimate image.

(2) A covered platform knowingly allows the distribution of a counterfeit intimate image without consent if the covered platform:

(a) receives notice under Section 13-72b-302 that a counterfeit intimate image has been distributed without consent; and

(b) fails to comply with the takedown requirements in Section 13-72b-302.

§ 13-72b-302 Duty to remove -- Notice and takedown requirements.

(1) A covered platform shall establish and implement notice and removal procedures that comply with the requirements established in Section 3(a) of the Take It Down Act.

(2) The requirements described in Subsection (1) include:

(a) establishing a mechanism for an individual depicted in a counterfeit intimate image to notify the covered platform that the image has been published on the covered platform without the individual's consent;

(b) providing clear and conspicuous notice of the mechanism described in Subsection (2)(a);

(c) upon receiving notice that meets the requirements established in the Take It Down Act, removing the reported counterfeit intimate image within 48 hours after receiving the notice; and

(d) making reasonable efforts to identify and remove any identical copy of the counterfeit intimate image.

(3) A covered platform that complies in good faith with the notice and takedown procedures required by this section is not liable under this chapter for actions taken in accordance with this section before receiving notice.

§ 13-72b-303 Civil liability for covered platforms.

(1) A person, or the heirs of a deceased person, who has been injured by a violation of Section 13-72b-301 may bring a civil action against the covered platform that committed the violation.

(2) If in an action described in Subsection (1) the court finds the defendant is violating or has violated any provision of Section 13-72b-301, the court shall:

(a) enjoin the defendant from continued violation; and

(b) order the defendant to remove or destroy any counterfeit intimate image distributed in violation of Section 13-72b-301 and all copies of the counterfeit intimate image within the defendant's possession or control.

(3) It is not necessary that actual damages to the plaintiff be alleged or proved in an action under this section.

(4) A plaintiff in an action under this section is entitled to recover:

(a) actual damages sustained, if any, including damages for emotional distress;

(b) punitive damages, if the violation is found to be willful, reckless, or malicious; and

(5) Each failure to comply with the notice and takedown requirements established in Section 13-72b-302 after receiving notice of a counterfeit intimate image constitutes a separate violation of this chapter.

(6) The statute of limitations for a civil action under this section is the later of:

(a) three years from the date the plaintiff discovered or reasonably should have discovered the violation; or

(b) 10 years from the date of the violation.

§ 13-72b-304 Safe harbor for covered platforms.

(1) A covered platform is not liable under Section 13-72b-303 if the covered platform demonstrates that:

(a) the covered platform implemented and maintained notice and removal procedures that comply with Section 13-72b-302; and

(b) the covered platform acted in good faith in responding to notices of non-consensual counterfeit intimate images.

(2) A covered platform qualifies for safe harbor protection under this section even if a non-consensual counterfeit intimate image appeared on the platform if the covered platform demonstrates that:

(a) the covered platform had no actual knowledge of the image before receiving notice under Section 13-72b-302; and

(b) upon receiving notice, the covered platform complied with the takedown requirements in Section 13-72b-302.

(3) In determining whether a covered platform acted in good faith in responding to a notice of a non-consensual counterfeit intimate image, the court shall consider:

(a) the size and resources of the covered platform;

(b) the volume of content distributed on the platform;

(d) whether the platform's measures are consistent with widely accepted industry standards.

(4) A covered platform may establish the safe harbor protections under this section by motion to dismiss or motion for summary judgment.

(5) If a court determines that a covered platform has established safe harbor protection under this section on a motion to dismiss or motion for summary judgment, the court shall:

(a) dismiss the action or grant summary judgment in favor of the covered platform; and

(b) award the covered platform reasonable attorney fees and costs.

§ 13-72b-305 Heightened pleading standard for actions against covered platforms.

(1) In any action brought under Section 13-72b-303 against a covered platform, the complaint shall plead with particularity facts establishing that the covered platform does not qualify for safe harbor protection under Section 13-72b-304.

(2) To meet the pleading requirements of Subsection (1), the plaintiff shall include specific factual allegations demonstrating that the covered platform does not qualify for safe harbor protection under Section 13-72b-304, including facts showing one or more of the following:

(a) that the covered platform failed to implement notice and removal procedures that comply with Section 13-72b-302;

(b) that the covered platform failed to act in good faith in responding to notices of non-consensual counterfeit intimate images;

(i) the specific date and method by which notice was provided;

(ii) the content of the notice provided;

(iii) the covered platform's response or failure to respond; and

(iv) facts establishing that the covered platform failed to comply with the takedown requirements in Section 13-72b-302; or

(d) if the plaintiff did not provide notice under Section 13-72b-302:

(i) facts establishing that the covered platform had actual knowledge of the non-consensual counterfeit intimate image before the plaintiff provided notice; and

(ii) facts establishing that the covered platform failed to take reasonable steps to remove the image within 48 hours after obtaining actual knowledge.

(3) General or conclusory allegations that a covered platform violated this part are insufficient to state a claim.

(4) If a complaint fails to meet the pleading requirements of this section, the court shall dismiss the action without prejudice.

(5) A covered platform may bring a motion to dismiss under this section before filing an answer or other responsive pleading.

(6) If the court grants a motion to dismiss under this section and the plaintiff files an amended complaint that again fails to meet the pleading requirements of this section, the court shall:

(a) dismiss the action with prejudice; and

(b) award the covered platform reasonable attorney fees and costs incurred in bringing the motion to dismiss the amended complaint.

§ 13-72b-306 Relationship to federal law.

(1) This part does not expand or modify the notice and takedown requirements established in the Take It Down Act.

(2) This part does not alter, modify, or limit Section 230 of the Communications Decency Act, 47 U.S.C. Sec. 230, and may not be construed to impose liability on a covered platform for acting as the publisher or speaker of information provided by another information content provider.

Part 4 Severability

§ 13-72b-401 Severability.

(2) The provisions of this chapter are severable.

Chapter 72c Digital Content Provenance Standards Act

Part 1 General Provisions

§ 13-72c-101 Definitions.

As used in this chapter:

(1) "Artificial intelligence" means a machine-based system that makes predictions, recommendations, or decisions influencing real or virtual environments.

(2) "Capture device" means a device that can record photographs, audio, or video content, including a video camera, a still photography camera, a mobile phone with a built-in camera or microphone, or a voice recorder.

(3)

(a) "Capture device manufacturer" means a person who produces a capture device for sale in the state.

(b) "Capture device manufacturer" does not include a person exclusively engaged in the assembly of a capture device.

(4) "Compliant system provenance data" means system provenance data that is compliant with widely adopted specifications of an established standards-setting body.

(5)

(a) "Covered provider" means a person that creates, codes, or otherwise produces a generative artificial intelligence system that:

(i) has over 1,000,000 monthly visitors or users; and

(ii) is publicly accessible within the geographic boundaries of the state.

(b) "Covered provider" does not include a person that creates, codes, or otherwise produces a generative artificial intelligence system that is used exclusively for the person's internal business operations and is not made publicly accessible.

(6) "Digital signature" means a cryptography-based method that identifies the user or entity that attests to the information provided in the signed section.

(7) "Generative artificial intelligence system" means an artificial intelligence system that can generate derived synthetic content, including text, images, video, or audio, that emulates the structure and characteristics of the system's training data.

(8)

(a) "Large online platform" means a public-facing social media platform, mass messaging platform, or stand-alone search engine that distributes content to users who did not create or collaborate in creating the content and that exceeded 2,000,000 unique monthly users during the preceding 12 months.

(b) "Large online platform" does not include:

(i) a broadband internet access service, as defined in 47 C.F.R. Sec. 8.1(b); or

(ii) a telecommunications service, as defined in 47 U.S.C. Sec. 153.

(9) "Latent" means present but not manifest.

(10) "Manifest" means easily perceived, understood, or recognized by a natural person.

(11) "Mass messaging platform" means a direct messaging platform that allows users to distribute content to more than 100 users simultaneously.

(12) "Metadata" means structural or descriptive information about data.

(13) "Personal information" means the same as that term is defined in Section 13-61-101.

(14) "Provenance data" means data that is embedded into digital content, or that is included in the digital content's metadata, for the purpose of verifying the digital content's authenticity, origin, or history of modification.

(15) "System provenance data" means provenance data that is not reasonably capable of being associated with a particular user and that contains:

(a) information regarding the type of device, system, or service that was used to generate a piece of digital content; or

(b) information related to content authenticity.

(16) "User" means a Utah resident who accesses, interacts with, or uses an interactive computer service, platform, generation service, generative artificial intelligence system, or capture device.

(17) "User interface" means the method by which an individual interacts with, controls, or receives information from a computer, software application, website, or electronic device.

Part 2 Content Provenance Standards And Requirements

§ 13-72c-201 Requirements for large online platforms.

(1) A large online platform shall:

(a) detect whether compliant system provenance data is embedded into or attached to content distributed on the large online platform;

(b) provide a user interface to disclose the availability of system provenance data; and

(i) directly through the large online platform's user interface described in Subsection (1)(b);

(ii) by allowing the user to download the content's compliant system provenance data; or

(iii) by providing a link to the content's system provenance data displayed on an internet website or in another application provided either by the large online platform or a third party.

(2) A large online platform may not, to the extent technically feasible, knowingly strip any system provenance data or digital signature that is compliant with widely adopted specifications adopted by an established standards-setting body from content uploaded or distributed on the large online platform.

§ 13-72c-202 Requirements for capture devices.

(1) A capture device manufacturer shall include a latent disclosure in content captured by the capture device that conveys:

(a)

(i) the name of the capture device manufacturer; or

(ii) digital signatures sufficient to prove whether the content was created using a type of capture device; and

(b) the time and date of the content's creation or alteration.

(2) A capture device manufacturer may provide a user with the option to disable the latent disclosure on a capture device required in Subsection (1).

(3) A capture device manufacturer shall comply with this section only to the extent technically feasible and compliant with widely adopted specifications adopted by an established standards-setting body.

(4) This section applies to any capture device a capture device manufacturer produces for sale in the state on or after January 1, 2028.

§ 13-72c-203 User disclosures.

A covered provider shall include a latent disclosure in image, video, or audio content, or content that is any combination of image, video, or audio, created or substantially modified by the covered provider's generative artificial intelligence system that meets the following criteria:

(1) to the extent that it is technically feasible and reasonable, the disclosure conveys the following information, either directly or through a link to a permanent internet website:

(a) the time and date of the content's creation or alteration; and

(b) either:

(i) the name of the capture device manufacturer; or

(ii) digital signatures sufficient to prove whether the content was created or substantially altered using a generative artificial intelligence system; and

(2) the disclosure is consistent with widely accepted industry standards.

Part 3 Enforcement

§ 13-72c-301 Enforcement -- Civil liability.

(1) The Division of Consumer Protection shall administer and enforce the provisions of Part 2, Content Provenance Standards and Requirements in accordance with Chapter 2, Division of Consumer Protection.

(2) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(a) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(b) the division may bring an action in a court of competent jurisdiction to enforce a provision of this chapter.

(3) In a court action by the division to enforce a provision of this chapter, the court may:

(a) declare that an act or practice violates a provision of this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an injured purchaser or consumer;

(e) impose a fine of up to $2,500 for each violation of this chapter; or

(f) award other relief that the court determines reasonable and necessary.

(4) If a court awards judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(5) A court may impose a civil penalty of no more than $5,000 for each violation of an administrative or court order issued for a violation of this chapter.

(6) The attorney general may bring a civil action on behalf of the division to collect a civil penalty imposed under this section.

(7) The division shall deposit all fines and civil penalties collected under this section into the Consumer Protection Education and Training Fund created in Section 13-2-8.

(8) Nothing in this chapter shall displace any other available remedies or rights authorized under the laws of this state or the United States.

Chapter 73 Motor Vehicle Consumer Data Protection

Part 1 General Provisions

§ 13-73-101 Definitions.

As used in this chapter:

(1) "Authorized integrator" means a third party with whom a franchisee enters into a contract to perform a specific function for a franchisee that allows the third party to access protected dealer data or to write data to a dealer data system, or both, to carry out the specified function.

(2) "Consumer data" means non-public personal information defined in 15 U.S.C. Sec. 6809(4) as it existed on January 1, 2024.

(3) "Cyber ransom" means to encrypt, restrict, or prohibit, or to threaten or attempt to encrypt, restrict, or prohibit a franchisee's or a franchisee's authorized integrator's access to protected dealer data or other dealer data to obtain payment not agreed to by the franchisee or the franchisee's authorized integrator in a written contract for services or goods.

(4)

(a) "Dealer data system" means a software, hardware, or firmware system that is owned, leased, or licensed by a franchisee, that includes a system of web-based applications, computer software, or computer hardware, whether located at the franchisee's dealership or hosted remotely, and that stores or provides access to protected dealer data.

(b) "Dealer data system" means a dealership management system or a consumer relationship management system.

(5) "Dealer data vendor" means a third party dealer management system provider, consumer relationship management system provider, or third party vendor providing similar services that store protected dealer data pursuant to a contract with the franchisee.

(6) "Dealership" means the same as that term is defined in Section 13-14-102.

(7) "Fee" means payment for access to protected dealer data which is in addition to charges written in an executed contract for goods or services.

(8) "Franchisee" means the same as that term is defined in Section 13-14-102.

(9) "Franchisee program" means a bonus, incentive, rebate, or other payment program that a franchisor offers to a franchisee.

(10) "Franchisor" means the same as that term is defined in Section 13-14-102.

(11)

(a) "Manufacturer" means a manufacturer of new motor vehicles.

(b) "Manufacturer" does not include a manufacturer acting in the capacity of a vendor, service provider, dealer data vendor, or an affiliate or subsidiary of a manufacturer operating as a vendor, service provider, or a dealer data vendor.

(12) "Other generally accepted standards" means security standards that are at least as comprehensive as STAR standards.

(13) "Prior express written consent" means a franchisee's express written consent to protected dealer data sharing that:

(a) is in a document separate from any other:

(i) consent;

(ii) contract;

(iii) franchise agreement; or

(iv) writing;

(b) identifies all parties with whom the protected dealer data may be shared; and

(i) all details that the franchisee requires relating to the scope and nature of the protected dealer data to be shared, including the data fields and the duration for which the sharing is authorized; and

(ii) all provisions and restrictions that are required under federal law to allow sharing the protected dealer data.

(14)

(a) "Protected dealer data" means:

(i) consumer data that:

(A)

(I) a consumer provides to a franchisee; or

(II) a franchisee otherwise obtains; and

(B) is stored in the franchisee's dealer data system;

(ii) other data that relates to a franchisee's daily business operations and is stored in the franchisee's dealer data system; and

(iii) motor vehicle diagnostic data.

(b) "Protected dealer data" does not include data that:

(i) is otherwise publicly available; or

(ii) a franchisor or third party obtains through another source.

(15)

(a) "Required manufacturer data" means data that:

(i) a manufacturer is required to obtain under federal or state law;

(ii) is required to complete or verify a transaction between the franchisee and the manufacturer;

(iii) is motor vehicle diagnostic data; or

(iv) is reasonably necessary for:

(A) a safety notice, recall notice, manufacturer field action, or other legal notice obligation relating to the repair, service, and update of a motor vehicle;

(B) the sale and delivery of a new motor vehicle or certified used motor vehicle to a consumer, including necessary data for the vehicle manufacturer to activate services purchased by the consumer;

(D) claims for franchisee-supplied services relating to warranty parts or repairs;

(E) the evaluation of franchisee performance, including the evaluation of the franchisee's monthly financial statements and sales or service, consumer satisfaction with the franchisee through direct consumer contact, or consumer surveys;

(F) franchisee and market analytics;

(G) the identification of the franchisee that sold or leased a specific motor vehicle and the date of the transaction;

(H) marketing purposes designed for the benefit of franchisees, or to direct leads to the franchisee providing the dealer protected data to the franchisor;

(I) the development, evaluation, or improvement of the manufacturer's products or services; or

(J) the daily operational interactions of the franchisee with the manufacturer or other franchisees through applications hosted on the manufacturer's dealer electronic communications system.

(b) "Required manufacturer data" does not include:

(i) consumer data on the consumer's credit application; or

(ii) a franchisee's individualized notes about a consumer that are not related to a transaction.

(16) "Service provider" means a person that processes protected dealer data on behalf of a franchisee and that receives, from or on behalf of the franchisee, consumer protected dealer data for a business purpose pursuant to a written contract, if the contract prohibits the person from:

(a) selling or sharing the protected dealer data;

(b) retaining, using, or disclosing the protected dealer data for any purpose other than for the business purposes specified in the contract for the franchisee, including retaining, using, or disclosing the protected dealer data for a commercial purpose other than the business purposes specified in the contract with the franchisee, or as permitted under this title;

(c) retaining, using, or disclosing the protected dealer data outside of the direct business relationship between the service provider and the franchisee; or

(d) combining the protected dealer data that the service provider receives from, or on behalf of, the franchisee with personal information that the service provider receives from, or on behalf of, another person or persons, or collects from the service provider's own interaction with the consumer.

(17) "STAR standards" means the current, applicable security standards published by the Standards for Technology in Automotive Retail.

(18)

(a) "Third party" means a person other than a franchisee.

(b) "Third party" includes:

(i) a service provider;

(ii) a vendor, including a dealer data vendor and authorized integrator;

(iii) a manufacturer acting in the capacity of a vendor, service provider, or dealer data vendor; or

(iv) an affiliate of a manufacturer described in Subsection (18)(b)(iii).

(i) a governmental entity acting pursuant to federal, state, or local law;

(ii) a person acting pursuant to a valid court order;

(iii) a manufacturer, not acting in the capacity of a vendor, service provider, or dealer data vendor; or

(iv) an affiliate of a manufacturer described in Subsection (18)(c)(iii).

(19) "Vendor" means a person to whom a franchisee makes available protected dealer data for a business purpose, pursuant to a written contract with the franchisee, if the contract:

(a) prohibits the vendor from:

(i) selling or sharing the protected dealer data;

(ii) retaining, using, or disclosing the protected dealer data for any purpose other than for the business purposes specified in the contract, including retaining, using, or disclosing the protected dealer data for a commercial purpose other than the business purposes specified in the contract, or as otherwise permitted under this title;

(iii) retaining, using, or disclosing the protected dealer data outside of the direct business relationship between the vendor and the franchisee; and

(iv) combining the protected dealer data that the vendor receives pursuant to a written contract with the franchisee with personal information that the vendor receives from or on behalf of another person or persons, or collects from the vendor's own interaction with the consumer;

(b) includes a certification made by the vendor that the vendor understands the restrictions in Subsection (19)(a)(i) and will comply with the restrictions; and

(c) permits, subject to agreement with the vendor, the franchisee to monitor the vendor's compliance with the contract through measures, including ongoing manual reviews, automated scans, regular assessments, audits, or other technical and operational testing at least once every 12 months.

(20) "Unreasonable restriction" means:

(a) an unreasonable limitation or condition on the scope or nature of the data that is shared with an authorized integrator;

(b) an unreasonable limitation or condition on the ability of an authorized integrator to write data to a dealer data system;

(c) an unreasonable limitation or condition on a third party that accesses or shares protected dealer data or that writes data to a dealer data system;

(d) requiring unreasonable access to a franchisor's or a third party's sensitive, competitive, or other confidential business information as a condition for accessing protected dealer data or sharing protected dealer data with an authorized integrator;

(e) prohibiting or limiting a franchisee's ability to store, copy, securely share, or use protected dealer data outside of the dealer data system in any manner or for any reason; or

(f) allowing access to, or accessing protected dealer data without, the franchisee's prior express written consent.

§ 13-73-102 Applicability.

This chapter does not:

(1) govern, restrict, or apply to data outside of a dealer data system, including data that is generated by a motor vehicle or a device that a consumer connects to a motor vehicle;

(2) authorize a franchisee or third party to use data that the franchisee or third party obtains from a person in a manner that is inconsistent with:

(a) an agreement with the person; or

(b) the purposes for which the person provides the data to the franchisee or third party; or

(3) except as is necessary to fulfill a franchisee's obligation to provide warranty, repair, or service to consumers, grant a franchisee:

(a) ownership of motor vehicle diagnostic data; or

(b) rights to share or use motor vehicle diagnostic data.

Part 2 Data Protection Regulations

§ 13-73-201 Data submissions to franchisors or third parties.

(1) A franchisor or third party may not require a franchisee to grant to the franchisor, third party, or person acting on behalf of the franchisor or third party, direct or indirect access to the franchisee's dealer data system.

(2) A franchisee may submit or push data or information to a franchisor or third party through an electronic file format or protocol if the electronic file format or protocol:

(a) is widely accepted; and

(b) complies with:

(i) STAR standards; or

(ii) other generally accepted standards.

§ 13-73-202 Service provider contracts -- Franchisors and third parties -- Prohibitions -- Requirements.

(1)

(a) A service provider contract may permit the franchisee to monitor the service provider's compliance with the contract through ongoing manual reviews, automated scans, regular assessments, audits, or other technical and operational testing, at least once every 12 months.

(b) If a service provider or vendor engages another person to assist the service provider or vendor in processing protected dealer data for a business purpose on behalf of the franchisee, or if another person engaged by the service provider or vendor engages a person to assist in processing protected dealer data for that business purpose, the service provider or vendor shall notify the franchisee of that engagement, and the engagement shall be pursuant to a written contract binding the person to observe all the requirements described in Subsection 13-73-101(16).

(2) A franchisor or third party may not:

(a) access, share, sell, copy, use, or transmit protected dealer data without prior express written consent;

(b) engage in any act of cyber ransom; or

(c) take action to prohibit or limit a franchisee's ability to protect, store, copy, share, or use protected dealer data, including:

(i) imposing a fee for, or other restriction on, the franchisee or authorized integrator:

(A) accessing or sharing protected dealer data;

(B) writing data to a dealer data system; or

(ii) unreasonably prohibiting a third party or an authorized integrator that satisfies STAR standards or other generally accepted standards from integrating into the franchisee's dealer data system; or

(iii) placing an unreasonable restriction on integration by an authorized integrator or third party.

(3)

(a) Notwithstanding Subsection (2)(c)(i)(A), a franchisor or a third party may charge a franchisee the franchisor's or third party's actual third party costs, including a reasonable profit margin for providing access to protected dealer data to a franchisee, authorized integrator, or other third party if the franchisor or third party:

(i) discloses the charge to the franchisee in writing; and

(ii) upon written request by the franchisee, provides to the franchisee documentation that the charges were agreed to in writing by the franchisee or provided for in the contract for services or goods.

(b) If a third party fails to comply with Subsection (3)(a), a charge described in Subsection (3)(a) is a fee prohibited under Subsection (2)(c)(i).

(4)

(a) A franchisee may unilaterally revoke or amend the prior express written consent described in Subsection (2)(a):

(i) with 60 days notice without cause; or

(ii) immediately for cause.

(b)

(i) Except as provided in Subsection (4)(b)(ii), a franchisor may not seek or require prior express written consent as a condition of or factor for consideration or eligibility for a:

(A) franchisor program;

(B) standard or policy; or

(ii) If a franchisor's program reasonably requires delivery of information that is protected dealer data to qualify for the program and receive franchisor program benefits, a franchisee shall provide the information to participate in the franchisor program.

(5) This section does not:

(a) limit a franchisee's, franchisor's, or third party's obligations:

(i) as a service provider;

(ii) under federal, state, or local law, to protect and secure protected dealer data; or

(iii) regarding required manufacturer data; and

(b) require a franchisor to pay a benefit to a franchisee if the franchisee refuses to provide data reasonably necessary to participate in the franchisor program.

(6) A franchisor or franchisor's selected third party may not require a franchisee to pay a fee for sharing required manufacturer data if:

(a) the franchisor requires a franchisee to provide required manufacturer data through a specific third party that the franchisor selects;

(b) the franchisor does not allow the franchisee to submit the required manufacturer data using the franchisee's choice of a third party vendor;

(d) the third party vendor satisfies the STAR standards or other generally accepted standards.

(7) A franchisor may not access, sell, copy, use, transmit, or require a franchisee to share or provide access to protected dealer data, unless:

(a) the protected dealer data is required manufacturer data; or

(b) the franchisee provides prior express written consent.

(8) A franchisor may only use required manufacturer data that the franchisor obtains from a dealer data system for the purposes described in Subsection 13-73-101(14).

(9)

(a) A franchisor, authorized integrator, or other third party shall indemnify a franchisee for any claims or damages if:

(i) the claims or damages directly result from a violation of this section by the party from whom the franchisee is seeking indemnification;

(ii) the claims or damages directly result from a violation of this section by:

(A) a vendor or contractor as an agent acting on behalf of the party from whom the franchisee is seeking indemnification; or

(B) a vendor or other service provider who the party from whom the franchisee is seeking indemnification required the franchisee to use; and

(iii) the claims or damages result from a violation of this section for:

(A) accessing or providing access to protected dealer data;

(B) using protected dealer data; or

(b) A franchisee bringing a cause of action against a franchisor, authorized integrator, or other third party for a violation of this section has the burden of proof.

(10) Notwithstanding Subsection (6), this chapter does not restrict or limit a franchisor's right to:

(a) access or obtain required manufacturer data;

(b) use, share, copy, or transmit required manufacturer data for the purposes described in Subsection 13-73-101(15); or

(i) proprietary to the franchisor;

(ii) created by the franchisor;

(iii) obtained from a source other than the franchisee; or

(iv) public information.

§ 13-73-203 Dealer data vendors -- Authorized integrators -- Requirements.

(1)

(a) A dealer data vendor shall adopt and make available to a franchisee and authorized integrator in a standardized framework:

(i) the exchange, integration, and sharing of data between a dealer data system and an authorized integrator; and

(ii) the retrieval of data by an authorized integrator.

(b) The standardized framework described in Subsection (1)(a) shall comply with STAR standards or other generally accepted standards.

(2)

(a) Except as provided in Subsection (2)(b), a dealer data vendor shall provide to an authorized integrator access to open application programming interfaces for the standardized framework described in Subsection (1) that meet the reasonable commercial or technical standard for secure data integration.

(b) If the open application interfaces described in Subsection (2)(a) do not meet the reasonable commercial or technical standard for secure data integration, a dealer data vendor may provide to an authorized integrator a similar open access integration method that:

(i) provides the same or better access to an authorized integrator as an application programming interface; and

(ii) uses the standardized framework described in Subsection (1).

(3) A dealer data vendor and an authorized integrator:

(a) may access, use, store, or share protected dealer data or any other data from a dealer data system only to the extent allowed in the written agreement with the franchisee;

(b) shall, upon a franchisee's request, provide the franchisee with a list of all persons:

(i) with whom the dealer data vendor or authorized integrator is sharing, or has shared, protected dealer data; or

(ii) to whom the dealer data vendor or authorized integrator has allowed or is allowing access to protected dealer data; and

(c) shall allow a franchisee to audit the dealer data vendor's or authorized integrator's access to and use of protected dealer data.

(4) A franchisee may terminate an agreement between a dealer data vendor or authorized integrator and the franchisee relating to access to, sharing of, selling of, copying, using, or transmitting protected dealer data upon 90 days' notice.

(5)

(a) If a dealer data vendor or authorized integrator receives a franchisee's notice described in Subsection (4), the dealer data vendor or authorized integrator shall ensure a secure transition of all protected dealer data to a successor dealer data vendor or successor authorized integrator.

(b) In fulfilling the dealer data vendor's or authorized integrator's duties under Subsection (5)(a), a dealer data vendor or authorized integrator shall:

(i) provide access to or an electronic copy of all protected dealer data and all other data stored in the dealer data system in:

(A) a commercially reasonable time; and

(B) a format that the successor dealer data vendor or successor authorized integrator can access and use; and

(ii) before the agreement terminates, delete or return to the franchisee all protected dealer data pursuant to the franchisee's written directions.

Chapter 74 Firearm Financial Transactions

Part 1 General Provisions

§ 13-74-101 Definitions.

(1) "Ammunition" means ammunition or cartridge cases, primers, bullets, or propellant powder designed for use in a firearm.

(2) "Customer" means an individual who presents a payment card to a merchant for the purchase of a good or service.

(3) "Financial entity" means any person involved in facilitating or processing a payment card transaction, including:

(a) a payment card network;

(b) a merchant acquirer; or

(4) "Firearm" means the same as that term is defined in Section 76-11-101.

(5)

(a) "Firearm accessory or component" means a device specifically adapted to:

(i) enable the wearing or carrying about one's person or the storage or mounting in or on any conveyance of a firearm; or

(ii) be inserted into or affixed to a firearm to enable, alter, or improve the functioning or capabilities of the firearm.

(b) "Firearm accessory or component" includes a telescopic or laser sight, magazine, flash or sound suppressor, folding or aftermarket stock or grip, speedloader, brace, ammunition carrier, or light for target illumination.

(6) "Firearms code" means the merchant category code 5723, approved in September 2022 by the International Organization for Standardization, for firearms retailers.

(7) "Firearms retailer" means a merchant engaged in the lawful business of selling or trading firearms, firearm accessories or components, or ammunition.

(8) "Merchant" means a person physically located in the state who accepts a payment card from a customer for the purchase of a good or service.

(9) "Payment card" means a card, code, or other means by which a person may debit a deposit account or use a line of credit to purchase a good or service.

(10) "Reloading supplies" means any equipment, component, or material designed for the reloading of ammunition, including reloading presses, shell holders, powder measures, priming tools, reloading manuals, casings, and gunpowder.

Part 2 Prohibited Conduct

§ 13-74-201 Limitations on firearms merchant codes.

(1) For the processing of a payment card transaction, a financial entity may not assign to a firearms retailer or require a firearms retailer to use the firearms code.

(2) For purposes of the sale of a firearm, a firearm accessory or component, ammunition, or reloading supplies, a firearms retailer may not provide the firearms code to a financial entity.

(3) A financial entity may not otherwise classify a firearms retailer separately from general merchandise retailers or sporting goods retailers.

(4) Nothing in this chapter:

(a) limits a financial entity's ability to:

(i) negotiate with responsible parties; or

(ii) comply with state or federal laws or regulations; or

(b) impairs a financial entity's activities related to dispute processing, fraud or compliance management, or protecting transaction integrity from concerns related to illegal or suspicious activities, data breaches, or cyber risks.

Part 3 Enforcement

§ 13-74-301 Enforcement powers of the attorney general.

(1)

(a) The attorney general has the sole authority to enforce the provisions of this chapter.

(b) Nothing in this chapter creates a private right of action.

(2)

(a) If a person believes that a financial entity violated or is in violation of this chapter, the person may file a complaint with the attorney general.

(b) Upon receipt of a complaint, the attorney general shall initiate an investigation.

(3) If, based on investigation, the attorney general believes that a financial entity violated or is in violation of this chapter, the attorney general shall send the financial entity written notice that identifies each violation and directs the financial entity to cease each violation within 30 days after the day on which the financial entity receives the notice.

(4)

(a) The attorney general shall initiate a civil action against a financial entity that fails to cease a violation of this chapter within the 30-day time period described in Subsection (3).

(b) In an action under this subsection, the attorney general may seek, and the court may order:

(i) injunctive relief;

(ii)

(A) if the court determines that the financial entity recklessly violated a provision of this chapter, a civil fine of $10,000 for each violation or actual damages, whichever is greater; or

(B) if the court determines that the financial entity willfully violated a provision of this chapter, a civil fine of $25,000 for each violation or actual damages, whichever is greater; and

(iii) costs and reasonable attorney fees to the attorney general if the court issues an injunction or imposes a civil fine.

Chapter 75 Franchise Protection Act

Part 1 General Provisions

§ 13-75-101 Definitions.

(1)

(a) "Franchise agreement" means a written agreement that:

(i) grants a franchisee the right to engage in a business of offering, selling, or distributing goods or services;

(ii) grants the franchisee license to use a trademark, service mark, trade name, advertising, or other commercial symbol that the franchisor owns or leases; and

(iii) requires the franchisee to pay a franchise fee.

(b) "Franchise agreement" includes all written documents incorporated in the written agreement by reference.

(i) Chapter 14, New Automobile Franchise Act; or

(ii) Title 29, Hotels and Hotel Keepers.

(2)

(a) "Franchisee" means a person to which a franchisor grants a franchise.

(b) "Franchisee" does not include:

(i) a person that is regulated by Chapter 14, New Automobile Franchise Act; or

(ii) a person that is regulated by Title 29, Hotels and Hotel Keepers.

(3)

(a) "Franchisor" means a person that grants a franchise to another person.

(b) "Franchisor" does not include:

(i) a person that is regulated by Chapter 14, New Automobile Franchise Act;

(ii) a person that is regulated by Title 29, Hotels and Hotel Keepers; or

(iii) a person that is granting franchises for the right to operate businesses regulated by Title 29, Hotels and Hotel Keepers.

(4) "Original franchise agreement" means the initial franchise agreement that the franchisee and franchisor sign.

(5) "Religious day operation requirement" means any requirement that has the effect of requiring a franchisee to operate a franchise on a day when operating would conflict with the franchisee's sincerely held religious belief.

(6) "Violation" means a franchisor's failure to comply with this chapter resulting in a court with jurisdiction imposing a civil penalty under Section 13-75-201 against the franchisor.

Part 2 Franchisee Protection

§ 13-75-201 Franchisee religious day operation protection.

(1) Except as provided in Subsection (2), when a franchisee asserts a sincerely held religious belief, a franchisor may not:

(a) unilaterally impose a religious day operation requirement;

(b) require a franchisee to accept a religious day operation requirement as a part of an amendment to the franchise agreement; or

(c) refuse to renew a franchise agreement based solely on a franchisee's failure to comply with a religious day operation requirement.

(2) Subsection (1) does not apply when:

(a) the original franchise agreement provides a religious day operation requirement;

(b) the franchisee agrees through a renewal or an amendment to the franchise agreement to a religious day operation requirement; or

(c) the franchisor and the franchisee enter into a franchise agreement to develop an additional franchise location that contains a religious day operation requirement.

(3) The protections provided in Subsection (1) are not transferable.

(4) If a court with jurisdiction finds reasonable cause to believe that a franchisor violated Subsection (1), the court may order:

(a) actual damages, reasonable attorney fees, and costs to the franchisee;

(b) a permanent or temporary injunction, a temporary restraining order, or other appropriate order; and

(i) $10,000 for a first violation;

(ii) $25,000 for a second violation within three years after the day on which the franchisee filed the complaint for the first violation; or

(iii) $50,000 for a violation subsequent to a second violation within five years after the day on which the franchisee filed the complaint for the first violation.

Chapter 76 App Store Accountability Act

Part 1 General Provisions

§ 13-76-101 Definitions.

As used in this chapter:

(1) "Account holder" means an individual who is associated with a mobile device.

(2) "Age category" means one of the following categories of individuals based on age:

(a) "child" which means an individual who is under 13 years old;

(b) "younger teenager" which means an individual who is at least 13 years old and under 16 years old;

(d) "adult" which means an individual who is at least 18 years old.

(3) "Age category data" means information about a user's age category that is:

(a) collected by an app store provider; and

(b) shared with a developer.

(4) "Age rating" means a classification that provides an assessment of the suitability of an app's content for different age groups.

(5) "App" means a software application or electronic service that a user may run or direct on a mobile device.

(6) "App store" means a publicly available website, software application, or electronic service that allows users to download apps from third-party developers onto a mobile device.

(7) "App store provider" means a person that owns, operates, or controls an app store that allows users in the state to download apps onto a mobile device.

(8) "Content description" means a description of the specific content elements that informed an app's age rating.

(9) "Developer" means a person that owns or controls an app made available through an app store in the state.

(10) "In-app purchase" means a charge associated with any user conduct within an app and billed by an app store for the acquisition of virtual currency, digital goods, digital services, or other apps.

(11) "Knowingly" means to act with actual knowledge or to act with knowledge fairly inferred based on objective circumstances.

(12) "Minor" means an individual under 18 years old that:

(a) has not been emancipated as that term is defined in Section 80-7-102; or

(b) has not been married.

(13) "Minor account" means an account with an app store provider that:

(a) is established by an individual who the app store provider has determined is under 18 years old through the app store provider's age verification methods; and

(b) requires affiliation with a parent account.

(14) "Mobile device" means a phone or general purpose tablet that:

(a) provides cellular or wireless connectivity;

(b) is capable of connecting to the internet;

(d) is capable of running apps through the mobile operating system.

(15) "Mobile operating system" means software that:

(a) manages mobile device hardware resources;

(b) provides common services for mobile device programs;

(d) provides interfaces for applications to access device functionality.

(16) "Parent" means, with respect to a minor, an individual who is reasonably believed to be:

(a) an individual who has a parent-child relationship, as defined in Section 81-5-102, with the minor;

(b) a legal guardian;

(d) any other individual who has legal authority to make decisions on behalf of a minor.

(17) "Parent account" means an account with an app store provider that:

(a) is verified to be established by an individual who the app store provider has determined is not a minor through the app store provider's age verification methods; and

(b) may be affiliated with one or more minor accounts.

(18) "Parental consent disclosure" means the following information that an app store provider is required to provide to a parent before obtaining verifiable parental consent:

(a) if the app store provider has an age rating for the app, the app's age rating;

(b) if the app store provider has a content description for the app, the app's content description;

(i) the personal data collected by the app from a user; and

(ii) the personal data shared by the app with a third party; and

(d) if personal data is collected by the app, the methods implemented by the developer to protect the personal data.

(19)

(a) "Pre-installed application" means an app, or portion of an app, that is present on a mobile device at the time of:

(i) purchase;

(ii) initial activation; or

(iii) first use by a consumer.

(b) "Pre-installed application" includes:

(i) an app, or portion of an app, installed or partially installed by:

(A) the device manufacturer;

(B) a wireless service provider;

(D) any other party before purchase, initial activation, or first use by the consumer; and

(ii) browsers, search engines, and messaging applications.

(i) core operating system functions;

(ii) essential device drivers;

(iii) applications necessary for basic device operation, including:

(A) phone applications;

(B) settings applications; or

(iv) security or system maintenance applications essential to device functionality.

(20) "Significant change" means a material modification to an app's terms of service or privacy policy that:

(a) changes the categories of data collected, stored, or shared;

(b) alters the app's age rating or content descriptions;

(d) introduces advertisements where no advertisements were previously present in the app.

(21) "Verifiable parental consent" means authorization that:

(a) is provided by an individual who the app store provider has verified is an adult;

(b) is given after the app store provider has clearly and conspicuously provided the parental consent disclosure to the individual; and

(i) grant consent; or

(ii) decline consent.

Part 2 App Store Provider and Developer Requirements

§ 13-76-201 App store provider requirements.

(1) Beginning May 6, 2027, an app store provider shall:

(a) at the time an individual who is located in the state creates an account with the app store provider, or for an existing account, within 12 months after the day on which the obligations described in this section take effect:

(i) request age category information from the individual; and

(ii) verify the individual's age category using commercially available methods that are reasonably designed to ensure accuracy, which for a minor shall include affirmative age attestation by a parent together with other age information collected as part of the creation or use of an account;

(b) if the age verification method or process described in Subsection (1)(a) determines the individual is a minor:

(i) require the account to be affiliated with a parent account; and

(ii) obtain verifiable parental consent from the holder of the affiliated parent account before allowing the minor to:

(A) download an app;

(B) purchase an app; or

(i) notify the account holder of the significant change; and

(ii) for a minor account:

(A) notify the holder of the affiliated parent account; and

(B) obtain renewed verifiable parental consent;

(d) provide to a developer, in response to a request authorized under Section 13-76-202:

(i) age category data for a user located in the state; and

(ii) the status of verified parental consent for a minor located in the state;

(e) notify a developer when a parent revokes parental consent;

(f) protect age category data and any associated verification data by:

(i) limiting collection and processing to data necessary for:

(A) verifying an account holder's age;

(B) obtaining verifiable parental consent; or

(ii) transmitting age category data using industry-standard encryption protocols that ensure:

(A) data integrity; and

(B) data confidentiality;

(g) for a pre-installed application:

(i) provide available age category information in response to a request from a developer; and

(ii) take reasonable measures to facilitate verifiable parental consent for use of the app in response to a request from a developer; and

(h) comply with a developer's request made in accordance with Subsection 13-76-202(6) to prevent minor accounts from downloading or purchasing the developer's app.

(2) Beginning May 6, 2027, an app store provider may not:

(a) enforce a contract or terms of service against a minor unless the app store provider has obtained verifiable parental consent;

(b) knowingly misrepresent the information in the parental consent disclosure; or

(i) between an app store provider and a developer as required by this chapter; or

(ii) as required by law.

§ 13-76-202 Developer requirements.

(1) Beginning May 6, 2027, a developer shall:

(a) verify through the app store's data sharing methods:

(i) the age category data of account holders located in the state; and

(ii) for a minor account, whether verifiable parental consent has been obtained;

(b) notify app store providers of a significant change to the app; and

(i) at the time an account holder:

(A) downloads an app;

(B) purchases an app; or

(ii) when implementing a significant change to the app; or

(iii) to comply with applicable laws or regulations.

(2) Beginning May 6, 2027, a developer may request age category data:

(a) no more than once during each 12-month period to verify:

(i) accuracy of age category data associated with an account holder; or

(ii) continued account use within the verified age category;

(b) when there is reasonable suspicion of:

(i) account transfer; or

(ii) misuse outside the verified age category; or

(3)

(a) Beginning May 6, 2027, when initially implementing any developer-created safety-related features or defaults, a developer shall use the lowest age category indicated by:

(i) age verification data provided by an app store provider; or

(ii) age data independently collected by the developer.

(b) Subsection (3)(a) does not prohibit a developer from allowing a parent to customize age-related restrictions, safety-related features, or content settings for individual users within a minor account after the initial defaults described in Subsection (3)(a) are set.

(4) Beginning May 6, 2027, a developer may not:

(a) enforce a contract or terms of service against a minor unless the developer has verified through the app store's data sharing methods that verifiable parental consent has been obtained;

(b) knowingly misrepresent any information in the parental consent disclosure; or

(5) Beginning May 6, 2027, a developer may only use age category data received through the app store's data sharing methods to:

(a) enforce any developer-created age-related restrictions;

(b) ensure compliance with applicable laws and regulations; or

(6) Beginning May 6, 2027, a developer may request that an app store provider prevent minor accounts from downloading or purchasing the developer's app.

Part 4 Enforcement and Safe Harbor

§ 13-76-401 Enforcement.

(1)

(a) Beginning May 6, 2027, only a minor, or the parent of that minor, who has been harmed by a violation of Subsection 13-76-201(2) may bring a civil action against an app store provider.

(b) Beginning May 6, 2027, only a minor, or the parent of that minor, who has been harmed by a violation of Subsection 13-76-202(4) may bring a civil action against a developer.

(2) In an action described in Subsection (1), the court shall award a prevailing parent:

(a) the greater of:

(i) actual damages; or

(ii) $1,000 for each violation;

(b) reasonable attorney fees; and

§ 13-76-402 Safe harbor.

(1) A developer is not liable for a violation of this chapter if the developer demonstrates that the developer:

(a) relied in good faith on:

(i) age category data received through an app store's data sharing methods; and

(ii) notification from an app store provider that verifiable parental consent was obtained if the age category data indicates that the account holder is a minor; and

(b) complied with the requirements described in Section 13-76-202.

(2) The safe harbor described in this section:

(a) applies only to actions brought under this chapter; and

(b) does not limit a developer or app store provider's liability under any other applicable law.

§ 13-76-403 Severability.

(2) The provisions of this chapter are severable.

§ 13-76-404 Application and limitations.

Nothing in this chapter shall be construed to:

(1) prevent an app store provider or developer from taking reasonable measures to:

(a) block, detect, or prevent distribution to minors of:

(i) unlawful material;

(ii) obscene material; or

(iii) other harmful material;

(b) block or filter spam;

(d) protect app store or app security;

(2) require an app store provider to disclose user information to a developer beyond:

(a) age category data; or

(b) verification of parental consent status;

(3) allow an app store provider or developer to implement measures required by this chapter in a manner that is:

(a) arbitrary;

(b) capricious;

(d) unlawful;

(4) require a developer to collect, retain, reidentify, or link any information beyond what is:

(a) necessary to verify age categories and parental consent status as required by this chapter; and

(b) collected, retained, reidentified, or linked in the developer's ordinary course of business;

(5) require an app store provider or developer to block access to an application that an account holder has downloaded or installed onto a mobile device before the day on which the obligations described in Sections 13-76-201 and 13-76-202 take effect, except to the extent that:

(a) a parent account revokes verifiable parental consent for an affiliated minor account; or

(b) a significant change to the application has occurred;

(6) require a developer or app store provider to create, adopt, or implement an app age rating system or content classification framework; or

(7) displace any other available remedies or rights authorized under the laws of this state or the United States.

Chapter 77 Generative Artificial Intelligence — Consumer Disclosures and Enforcement

Part 1 General Provisions

§ 13-77-101 Definitions.

As used in this chapter:

(1) "Artificial intelligence technology" means the same as that term is defined in Section 13-72-101.

(2) "Consumer transaction" means the same as that term is defined in Section 13-11-3.

(3) "Division" means the Division of Consumer Protection created in Section 13-2-102.

(4) "Generative artificial intelligence" means an artificial intelligence technology system that:

(a) is trained on data;

(b) is designed to simulate human conversation with a consumer through one or more of the following:

(i) text;

(ii) audio; or

(iii) visual communication; and

(5) "High-risk artificial intelligence interaction" means an interaction with generative artificial intelligence that involves:

(a) the collection of sensitive personal information, including:

(i) health data;

(ii) financial data; or

(iii) biometric data;

(b) the provision of personalized recommendations, advice, or information that could reasonably be relied upon to make significant personal decisions, including the provision of:

(i) financial advice or services;

(ii) legal advice or services;

(iii) medical advice or services; or

(iv) mental health advice or services; or

(6) "License" means a state-granted authorization for an individual to engage in a specified occupation:

(a) based on the individual meeting personal qualifications established under state law; and

(b) that is required before the individual may lawfully engage in the occupation for compensation.

(7) "Office" means the Office of Artificial Intelligence Policy created in Section 13-72-201.

(8) "Regulated occupation" means an occupation that:

(a) is regulated by the Department of Commerce; and

(b) requires an individual to obtain a license or state certification to practice the occupation.

(9) "State certification" means a state-granted authorization that:

(a) permits an individual to use the term "state certified" as part of a designated title related to a specified occupation:

(i) based on the individual meeting personal qualifications established under state law; and

(ii) where state law prohibits a noncertified individual from using the term "state certified" as part of a designated title; and

(b) does not prohibit a noncertified individual from engaging in the occupation for compensation.

(10) "Supplier" means the same as that term is defined in Section 13-11-3.

§ 13-77-102 Liability for violation of consumer protection law.

It is not a defense to the violation of any statute administered and enforced by the division under Section 13-2-102 that generative artificial intelligence:

(1) made the violative statement;

(2) undertook the violative act; or

(3) was used in furtherance of the violation.

§ 13-77-103 Required disclosures.

(1)

(a) A supplier that uses generative artificial intelligence to interact with an individual in connection with a consumer transaction shall disclose to the individual that the individual is interacting with generative artificial intelligence and not a human, if the individual asks or otherwise prompts the supplier about whether artificial intelligence is being used.

(b) The individual's prompt or question under Subsection (1)(a) must be a clear and unambiguous request to determine whether the interaction is with a human or with artificial intelligence.

(2) An individual providing services in a regulated occupation shall:

(a) prominently disclose when an individual receiving services is interacting with generative artificial intelligence in the provision of regulated services if the use of generative artificial intelligence constitutes a high-risk artificial intelligence interaction; and

(b) comply with all requirements of the regulated occupation when providing services through generative artificial intelligence.

(3) A disclosure required under Subsection (2) shall be provided:

(a) verbally at the start of a verbal interaction; and

(b) in writing before the start of a written interaction.

§ 13-77-104 Safe harbor.

(1) A person is not subject to an enforcement action for violating Section 13-77-103 if the person's generative artificial intelligence clearly and conspicuously discloses:

(a) at the outset of any interaction with an individual in connection with:

(i) a consumer transaction; or

(ii) the provision of regulated services; and

(b) throughout the interaction that it:

(i) is generative artificial intelligence;

(ii) is not human; or

(iii) is an artificial intelligence assistant.

(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division in consultation with the office, may make rules specifying forms and methods of disclosure that:

(a) satisfy the requirements of Subsection (1); or

(b) do not satisfy the requirements of Subsection (1).

§ 13-77-105 Enforcement.

(1) A violation of this chapter constitutes a violation of Subsection 13-11-4(1).

(2) The division shall administer and enforce this chapter in accordance with Chapter 2, Division of Consumer Protection.

(3) The attorney general shall:

(a) give legal advice to the division regarding the division's responsibilities under this chapter; and

(b) act as counsel for the division in the exercise of the division's responsibilities under this chapter.

(4) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(a) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(b) the division may bring an action in court to enforce this chapter.

(5) In an action brought by the division to enforce this chapter, the court may:

(a) declare that an act or practice violates this chapter;

(b) issue an injunction for a violation of this chapter;

(d) order payment of disgorged money to an individual injured by a violation of this chapter;

(e) impose a fine of up to $2,500 for each violation of this chapter; or

(f) award other reasonable and necessary relief.

(6) If a court of competent jurisdiction grants judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(7)

(a) A person who violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of up to $5,000 for each violation.

(b) The attorney general may impose a civil penalty authorized under this section in any civil action brought on behalf of the division.

§ 13-77-106 Scope.

This chapter does not displace any other remedy or right authorized under:

(1) the laws of this state; or

(2) federal law.

Chapter 78 Earned Wage Access Services Act

§ 13-78-101 Definitions.

As used in this chapter:

(1) "Consumer" means an individual who resides in the state.

(2) "Division" means the Division of Consumer Protection established in Section 13-2-102.

(3) "Earned but unpaid income" means compensation, including salary, wages, or other income, that:

(a) a consumer earns or accrues through services the consumer provides to an employer or as an independent contractor; and

(b) the employer or hiring party has not yet paid to the consumer.

(4) "Earned wage access services" means the payment of funds to a consumer determined by:

(a)

(i) a consumer's representation; and

(ii) the provider's reasonable determination of earned but unpaid income; or

(b) employment, income, and attendance data obtained directly or indirectly by a provider from an employer or an employer's payroll service provider.

(5)

(a) "Fee" means a charge the provider imposes on a consumer for earned wage access services, expedited delivery of funds, or a subscription or membership that includes earned wage access services.

(b) "Fee" does not include a voluntary tip, gratuity, or donation.

(6)

(a) "Provider" means a person that engages in the business of offering earned wage access services.

(b) "Provider" does not include:

(i) a service provider, such as a payroll service provider, that verifies, but does not fund, earned wages;

(ii) an employer that advances a portion of earned wages directly to employees or independent contractors; or

(iii) a person regulated under Title 7, Financial Institutions Act.

§ 13-78-102 Provider registration and registration renewal.

(1) A person may not act as a provider without registering with the division.

(2) To register as a provider, a person shall submit to the division a registration application:

(a) in the manner the division determines; and

(b) that includes:

(i) a registration application fee in an amount the division determines in accordance with Section 63J-1-504;

(ii) a copy of the agreement for earned wage access services the provider uses with a consumer; and

(iii) any information that the division requires by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(3) Each year a provider shall renew the provider's registration by submitting to the division an application for registration renewal:

(a) in a manner the division determines; and

(b) that includes:

(i) a registration renewal application fee in an amount the division determines in accordance with Section 63J-1-504;

(ii) any information the division requires by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(iii) a designated registered agent for service of process in the state and the registered agent's:

(A) name;

(B) street address;

(D) telephone number.

(4)

(a) The division shall require a provider's principal to:

(i) submit a fingerprint card in a form acceptable to the division; and

(ii) consent to a criminal background check by:

(A) the Bureau of Criminal Identification; or

(B) another state or federal agency that performs criminal background checks.

(b) The provider shall pay the cost of:

(i) the fingerprint card described in Subsection (4)(a)(i); and

(ii) the criminal background check described in Subsection (4)(a)(ii).

(5) The division may grant or deny the registration application or the renewal application in accordance with Section 13-78-105.

(6) A provider shall update registration information within 30 days after the day on which information the provider provides on the application becomes incorrect or incomplete.

(7) Registration with the division does not constitute an approval or endorsement of the provider by the division or the state.

§ 13-78-103 Regulation of earned wage access services.

(1) A provider is exempt from Title 7, Financial Institutions Act, and Title 12, Collection Agencies.

(2) A provider shall:

(a) develop and implement procedures to address consumer questions and complaints;

(b) before entering into an agreement for earned wage access services with a consumer, clearly and conspicuously disclose:

(i) the consumer's rights under the agreement;

(ii) all fees; and

(iii) any voluntary tip, gratuity, or donation opportunities;

(c)

(i) obtain customer consent to changes to terms and conditions of the earned wage access services; or

(ii) clearly and conspicuously disclose any material changes to terms and conditions of the earned wage access services at least 30 days before the effective date of the material changes;

(d) allow a consumer to cancel the use of earned wage access services at any time without incurring a penalty;

(e) offer at least one no-fee option to receive funds and clearly and conspicuously disclose how to select the no-fee option to receive funds;

(f) comply with all applicable local, state, and federal privacy and information security laws;

(g) deliver funds through any method agreed upon by the consumer and provider;

(h) reimburse overdraft or non-sufficient fund fees the consumer incurs as a result of the provider's error in disclosed or actual payment amount or payment date unless the funds were acquired by a consumer through fraudulent means;

(i) clearly and conspicuously disclose the voluntary nature of tips, gratuities, or donations and ensure the availability or terms of the earned wage access services are not contingent upon the payment of tips, gratuities, or donations;

(j) provide information to a consumer on how to file a complaint with the division;

(k) provide the following disclosures to a consumer at the time the consumer makes a request for funds:

(i) the anticipated timeline the consumer will receive the requested funds;

(ii) the amount of funds the consumer has requested;

(iii) the amount of the fee charged;

(iv) the amount of funds the consumer will receive;

(v) the account that will receive the funds; and

(vi) the date the provider is authorized to withdraw funds from the consumer's account, including fees and voluntary payments; and

(l) before initiating an advance, require the customer to acknowledge receiving the opportunity to view all disclosures listed in Subsection (2)(k) and any costs and fees.

(3) A provider may not:

(a) compel a consumer to repay funds by:

(i) using or threatening to use civil lawsuits, outbound calls, third-party collections, or debt sales;

(ii) reporting or threatening to report nonpayment to consumer reporting agencies; or

(iii) charging or threatening to charge interest, finance charges, late fees, or other penalties for nonpayment;

(b) use a consumer's credit report or credit score as defined by 15 U.S.C. Sec. 1681 et seq., to determine eligibility for earned wage access services;

(d) condition receipt of funds based on fees, tips, gratuities, or donations;

(e) mislead a consumer about the voluntary nature of tips, gratuities, or donations;

(f) charge a consumer a fee, interest, or any other penalty for failure to repay outstanding proceeds, fees, tips, or gratuities;

(g) provide earned wage access services in this state without first registering with the division;

(h) represent that the division or the state endorses the provider;

(i) omit from a filing with the division a material statement of fact that this chapter or a rule the division makes in accordance with this chapter requires; or

(j) include in a filing with the division a material statement of fact that the provider or the provider's principal knows or should know is false, deceptive, inaccurate, or misleading.

(4) Each act performed in violation of Subsection (3) is a separate violation of this chapter.

(5) The provider may prohibit a consumer from requesting a transaction if the consumer has outstanding unpaid proceeds from a previous transaction with the provider.

(6) A provider is not entitled to the exemption described by Subsection 13-11-22(1)(d).

§ 13-78-104 Penalties and enforcement -- Powers -- Legal counsel -- Fees.

(1)

(a) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(i) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(ii) the division may bring an action in a court with jurisdiction to enforce a provision of this chapter.

(b) In a court action by the division to enforce a provision of this chapter, the court may:

(i) declare that an act or practice violates a provision of this chapter;

(ii) issue an injunction for a violation of this chapter;

(iii) order disgorgement of any money received in violation of this chapter;

(iv) order payment of disgorged money to an injured purchaser or consumer;

(v) impose a fine of up to $2,500 for each violation of this chapter; or

(vi) award any other relief that the court deems reasonable and necessary.

(2) If a court grants judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(3)

(a) A person that violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.

(b) The court may impose a civil penalty authorized under this section in any civil action brought by the division.

§ 13-78-105 Denial, suspension, or revocation of provider registration.

(1) the division finds that the denial, suspension, or revocation is in the public interest; and

(2)

(a) the registration is incomplete, false, or misleading; or

(b) the provider or the provider's principal has:

(i) violated, caused a violation, or allowed a violation of a provision of:

(A) this chapter; or

(B) a rule made by the division under this chapter;

(ii) violated Chapter 11, Utah Consumer Sales Practices Act;

(iii) been enjoined by a court, or is the subject of an administrative or judicial order issued in Utah or another state, if the order:

(A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or

(B) was based on a finding of lack of integrity, truthfulness, or mental competence;

(iv) been convicted of a crime involving theft, fraud, or dishonesty;

(v) obtained or attempted to obtain a registration by misrepresenting any material fact;

(vi) failed to provide information the division requests;

(vii) failed to pay an administrative fine that the division or an administrative or judicial order imposed;

(viii) failed to pay the fee to file a registration application or a renewal application; or

(ix) failed to satisfy the requirements of this chapter or rule made by the division under this chapter.

§ 13-78-106 Applicability.

(1) A provider offering or providing earned wage access services in this state:

(a) does not violate state law governing deductions from payroll, salary, wages, compensation, or other income or the purchase, sale or assignment of, or an order for earned but unpaid income;

(b) is not offering a loan or other form of credit or debt, if the provider is not a creditor, a debt collector, or a lender; or

(2) Fees, voluntary tips, gratuities, or other donations paid to the provider, in accordance with this chapter, are not interest or finance charges.

Chapter 79 Office of the Homeowners' Association Ombudsman

Part 1 Office of the Homeowners' Association Ombudsman

§ 13-79-101 Definitions.

As used in this part:

(1) "Association of lot owners" means an association as that term is defined in Section 57-8a-102.

(2) "Association of unit owners" means the same as that term is defined in Section 57-8-3.

(3) "Department" means the Department of Commerce created in Section 13-1-2.

(4) "Governing documents of an association of lot owners" means the same as governing documents as that term is defined in Section 57-8a-102.

(5) "Governing documents of an association of unit owners" means the same as governing documents as that term is defined in Section 57-8-3.

(6) "Lot owner" means the same as that term is defined in Section 57-8a-102.

(7) "Office" means the Office of the Homeowners' Association Ombudsman created in Section 13-79-102.

(8) "Unit owner" means the same as that term is defined in Section 57-8-3.

§ 13-79-102 Creation of Office of the Homeowners' Association Ombudsman.

(1) There is created an Office of the Homeowners' Association Ombudsman in the department.

(2) The executive director of the department shall appoint attorneys with background or expertise in community association law to fill legal positions within the office in the department.

(3) An individual appointed under this section is an exempt employee.

§ 13-79-103 Duties and jurisdiction of office.

(1) The attorneys of the office shall:

(a) develop and maintain expertise in and understanding of issues and statutes impacting unit owners, lot owners, associations of lot owners, and associations of unit owners; and

(b) upon request:

(i) analyze a complaint from a lot owner, a unit owner, an association of lot owners, or an association of unit owners regarding the conduct of a lot owner, a unit owner, an association of lot owners, or an association of unit owners; and

(ii) provide an advisory opinion as described in Section 13-79-104.

(2)

(a) Neither the office nor the office's attorneys may represent private parties, state agencies, local governments, or any other individual or entity in a legal action that arises from or relates to a matter addressed in this chapter.

(b) No attorney of the office may be compelled to testify in a civil action filed concerning the subject matter of any review or advisory opinion arranged through the office.

(3) Except as provided in Subsection 13-79-104(10), evidence of a review by the office and the opinions, writings, findings, and determinations of the office are not admissible as evidence in a judicial action or arbitration.

(4) The office shall:

(a) analyze a complaint and issue an advisory opinion only for issues relating to a violation of a state statute;

(b) make public each advisory opinion the office issues in accordance with Subsection (4)(a);

(i) a list of statutes that impact unit owners, lot owners, associations of lot owners, and associations of unit owners; and

(ii) a list of frequently asked questions that the office receives and answers to those questions;

(d) publish educational materials on the office's website providing, in simple and easy to understand language, a brief overview of state law governing associations of unit owners and associations of lot owners, including:

(i) a description of the rights and responsibilities provided in Title 57, Chapter 8, Condominium Ownership Act, to a party under the jurisdiction of Title 57, Chapter 8, Condominium Ownership Act;

(ii) a description of the rights and responsibilities provided in Title 57, Chapter 8a, Community Association Act, to a party under the jurisdiction of Title 57, Chapter 8a, Community Association Act; and

(iii) instructions regarding how an association of unit owners or an association of lot owners may be organized and dismantled in accordance with this chapter; and

(e) direct an individual that makes a phone call to the office to the resources described in this Subsection (4).

(5) The office may not provide any service that requires interpreting the governing documents of an association of lot owners or the governing documents of an association of unit owners, including determining whether a provision of the governing documents is reasonable.

(6) An action that an attorney employed by the office takes within the scope of the attorney's employment in the office does not create an attorney-client relationship between the office or the office's attorneys and any of the following:

(a) a lot owner;

(b) a unit owner;

(d) an association of unit owners.

§ 13-79-104 Advisory opinion -- Process of advisory opinions.

(1) A lot owner, a unit owner, an association of lot owners, or an association of unit owners may request a written advisory opinion:

(a) from the office to determine compliance with:

(i) Title 57, Chapter 8, Condominium Ownership Act, and Title 57, Chapter 8a, Community Association Act; or

(ii) other applicable statutes of this state; and

(b) at any time before the commencement of:

(i) an action in a court with jurisdiction; or

(ii) binding arbitration.

(2)

(a) A person making a request for an advisory opinion described in Subsection (1) shall:

(i) file the request with the office;

(ii) pay a nonrefundable filing fee of $150;

(iii)

(A) file the request no later than one year after the day on which the person making the request knew or should have known about the alleged act that is the subject of the advisory opinion; and

(B) include in the request facts that demonstrate that the person submits the request no later than a year after the day on which the person making the request knew or should have known about the alleged act that is the subject of the advisory opinion; and

(iv) in the request for an advisory opinion, describe:

(A) the alleged act that is the subject of the advisory opinion; and

(B) the impact of the alleged act that is the subject of the advisory opinion on the person making the request.

(b) A person making a request under this Subsection (2) may allege actual damages as a result of the alleged act that is the subject of the advisory opinion.

(3) The office may establish policies providing for partial fee waivers for a person who is financially unable to pay the entire fee described in Subsection (2)(a)(ii).

(4)

(a) Except as provided in Subsection (4)(b), the office may not issue an advisory opinion unless the person requesting an advisory opinion exhausts all existing dispute resolution procedures provided in:

(i) the governing documents of an association of lot owners, if the dispute involves a lot owner; or

(ii) the governing documents of an association of unit owners, if the dispute involves a unit owner.

(b) An association of unit owners or an association of lot owners may not require that a person engage in binding arbitration before requesting an advisory opinion from the office.

(c) A person requesting an advisory opinion shall include in the person's complaint a description of how that person complied with this Subsection (4).

(5) Upon receipt of a request for an advisory opinion, the office shall:

(a) inquire of all parties if there are other necessary parties to the dispute;

(b) determine whether the person bringing the request has complied with Subsections (1) through (4); and

(c) deliver notice of the request to the opposing parties indicated in the request and any other necessary party identified in accordance with Subsection (5)(a).

(6) Subject to Subsection (7), after analyzing a complaint, the office shall:

(a) issue a written advisory opinion addressing the issues described in the request for an advisory opinion;

(b) include in the advisory opinion a statement of the facts and law supporting the opinion's conclusions; and

(7)

(a) The office shall issue a written statement declining to issue an advisory opinion when, in the opinion of the office:

(i) the issues are not ripe for review;

(ii) the person bringing the request has not exhausted all existing procedures provided in the applicable governing documents; or

(iii) the issues raised are beyond the scope of the office's statutory duty to review.

(b) Notwithstanding Subsection (7)(a), the office shall issue a written statement declining to review a request, if the request deals solely with a contractual dispute.

(8)

(a)

(i) If in the process of issuing an advisory opinion, the office determines that a person knowingly filed a false or fraudulent request for an advisory opinion, the office shall prohibit that person from filing a complaint with the office for two years after the day on which the office makes the determination.

(ii) The office may impose a civil penalty of up to $1,000 against a person if the office determines under this Subsection (8)(a) that the person filed a false or fraudulent request for an advisory opinion.

(b)

(i) The office may designate a person as a vexatious filer if the person has filed a request for three or more advisory opinions and for each request the office:

(A) determines that the person requesting the advisory opinion has not exhausted all existing procedures, as described in Subsection (4)(a);

(B) declines to issue an advisory opinion, as described in Subsection (7)(a); or

(ii) If the office designates a person as a vexatious filer under this Subsection (8)(b), the office may not accept a request by the person unless:

(A) the person submits a written copy of the request to the executive director of the department; and

(B) the executive director of the department authorizes the person to file the request for the advisory opinion with the office.

(9) An advisory opinion issued under this section is neither binding on any party to, nor admissible as evidence in, a dispute involving an association of lot owners or an association of unit owners, except as provided in Subsection (10).

(10)

(a) As used in this Subsection (10), "qualifying conditions" means:

(i) the office issues an advisory opinion described in this section;

(ii) the same issue that is the subject of the advisory opinion is subsequently litigated in court; and

(iii) the court rules in favor of the same party as the advisory opinion in a final judgment.

(b) If the qualifying conditions are met, the court may award the substantially prevailing party:

(i) reasonable attorney fees and court costs relating to the development of the cause of action from the date the office delivers the advisory opinion to the date of the court's resolution; and

(ii) if the court finds that the opposing party knowingly and intentionally violated the law governing the cause of action, a civil penalty of up to $5,000.

Chapter 80 Food Delivery Act

Part 1 Definitions

§ 13-80-101 Definitions.

As used in this chapter:

(1) "Delivery driver" means an individual working for a food delivery service.

(2) "Department" means the Department of Veterans and Military Affairs established in Section 71A-1-201.

(3) "Food delivery company" means an entity that operates a food delivery service.

(4) "Food delivery dead zone" means a defined geographic area in which a food delivery service may not:

(a) permit the delivery or pickup of food; or

(b) allow an individual delivering food on behalf of the food delivery service to enter.

(5) "Food delivery service" means a service that:

(a) facilitates the delivery of food from a restaurant or other food establishment to a consumer; and

(b) conducts operations online or through a mobile application.

(6) "Military land" means the same as that term is defined in Section 10-20-620.

Part 2 Food Delivery Dead Zone Food delivery dead zone

§ 13-80-201 Department to enforce food delivery dead zone.

(1) A food delivery company shall ensure that the physical boundaries of military land are marked as a food delivery dead zone.

(2) A delivery driver may report to the department a food delivery company's failure to mark the physical boundaries of military land as a food delivery dead zone.

(3) Staff employed on military land may report to the department any deliveries made by a delivery driver.

(4) The department shall:

(a) create a process by which a delivery driver or staff employed on military land may make a report described in Subsection (2);

(b) upon receiving a report described in Subsection (2), investigate whether the food delivery company has marked the physical boundaries of military land as a food delivery dead zone; and

(c) if the investigation demonstrates that a food delivery company has not marked the physical boundaries of military land as a food delivery dead zone, the department shall impose a fine on the food delivery company of $1,000.

Chapter 81 Utah Digital Choice Act

Part 1 General Provisions

§ 13-81-101 Definitions.

As used in this chapter:

(1) "Open protocol" means a publicly available technical standard that:

(a) enables interoperability and data exchange between social media services by providing a common data infrastructure where multiple social media services can access, contribute to, and synchronize a user's personal data;

(b) is free from:

(i) licensing fees; and

(ii) patent restrictions; and

(2)

(a) "Personal data" means the same as that term is defined in Section 13-61-101.

(b) "Personal data" includes a user's social graph.

(3)

(a) "Social graph" means data that represents a person's connections and interactions within a social media service.

(b) "Social graph" includes:

(i) the person's social connections with other users;

(ii) content created by the person;

(iii) the person's responses to other users' content, including comments, reactions, and shares;

(iv) other users' responses to the person's content; and

(v) metadata associated with the items described in Subsections (3)(b)(i) through (iv).

(c) "Social graph" does not include another user's or an entity's content and responses that have been designated private by those users and entities, including private messages.

(4) "Social media company" means an entity that owns or operates a social media service.

(5)

(a) "Social media service" means a public website or application that:

(i) displays content that is primarily generated by account holders and not by the social media company;

(ii) permits an individual to register as an account holder and create a profile that is made visible to the general public or a set of other users defined by the account holder;

(iii) connects account holders to allow users to interact socially with each other within the website or application; and

(iv) allows account holders to post content viewable by other users.

(b) "Social media service" does not include:

(i) email;

(ii) cloud storage; or

(iii) document viewing, sharing, or collaboration services.

(6) "User" means an individual located in the state who accesses or uses a social media service.

§ 13-81-102 Legislative findings.

The Legislature finds that:

(1) an individual has a right to control and move the individual's own personal data, including social interactions online;

(2) companies have demonstrated a pattern of restricting the interoperability of content, preventing users from easily sharing posts and interactions across different platforms; and

(3) the state should ensure that individuals have the right to access a complete personal data record from social media platforms.

Part 2 Data Rights and Requirements

§ 13-81-201 Data portability requirements.

If a consumer requests a copy of the consumer's personal data under Section 13-61-201, a social media service shall provide the personal data, including the user's social graph, in a format that:

(1) is portable, to the extent technically feasible;

(2) is readily usable, to the extent practicable; and

(3) allows the consumer to transmit the data to another controller without impediment if the controller processes the data by automated means.

§ 13-81-202 Data interoperability requirements.

(1) A social media company shall implement a transparent, third-party-accessible interoperability interface or interfaces to allow users to choose to:

(a) share a common set of the user's personal data between the social media services designated by the user; and

(b) enable third parties to access content created by the user and to be notified when new or updated content is available, with the user's permission.

(2) A social media company shall reasonably secure all personal data obtained through an interoperability interface.

(3) To achieve interoperability under Subsection (1), a social media company shall:

(a) utilize an open protocol;

(b) facilitate and maintain interoperability and synchronous data sharing with other social media services through an interoperability interface, based on reasonable terms that do not discriminate between social media services;

(c) establish reasonable and proportionate thresholds related to the frequency, nature, and volume of requests, beyond which the social media company may assess a reasonable fee for such access;

(d) offer to other social media companies a functionally equivalent version of any internal interfaces created by the social media company for the social media company's own social media services; and

(e) disclose to other social media companies complete, accurate, and regularly updated documentation describing access to the interoperability interface required under this section.

(4) A social media company or third party shall safeguard the privacy and security of a user's personal data obtained from other social media services through the interoperability interface in accordance with the social media company's or third party's privacy notice and administrative, technical, and physical data security practices.

(5) A social media company or third party may not share or receive a user's personal data through the interoperability interface except with the user's consent.

(6) A social media company shall adopt an accessible, prominent, and persistent method for users to give consent for data sharing with other social media services or third parties through the interoperability interface.

(7) A social media company is not required to:

(a) provide access to:

(i) inferences, analyses, or derived data that the social media company has generated internally about a user; or

(ii) proprietary algorithms, ranking systems, or other internal operating mechanisms; or

(b) transmit personal data that:

(i) is stored or structured in a proprietary format; and

(ii) meets both of the following criteria:

(A) no open, industry-standard format is reasonably available; and

(B) transmitting the data would disclose information described in Subsection (7)(a).

(8) This chapter does not apply to an entity that is:

(a) owned, controlled, operated, or maintained by a religious organization; and

(b) exempt from property taxation under state law.

Part 3 Administrative Provisions

§ 13-81-301 Rulemaking authority -- Rebuttable presumptions.

(1) The division may identify open protocols that the division has determined, after an assessment, meet the requirements of Section 13-81-202.

(2) If a social media company uses an open protocol that the division identifies under Subsection (1), the social media company shall be entitled to a rebuttable presumption of providing access on reasonable terms that do not discriminate between social media services.

§ 13-81-302 Enforcement.

(1) The division shall administer and enforce this chapter, within existing budget allocations, in accordance with Chapter 2, Division of Consumer Protection.

(2) The attorney general, upon request, shall give legal advice to, and act as counsel for, the division in the exercise of the division's responsibilities under this chapter.

(3)

(a) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(i) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(ii) the division may bring an action in court to enforce a provision of this chapter.

(b) In a court action by the division to enforce a provision of this chapter, the court may:

(i) declare that the act or practice violates a provision of this chapter;

(ii) enjoin actions that violate this chapter;

(iii) order disgorgement of any money received in violation of this chapter;

(iv) order payment of disgorged money to an injured purchaser or consumer;

(v) impose a civil penalty of up to $2,500 for each violation of this chapter;

(vi) award actual damages to an injured purchaser or consumer; and

(vii) award any other relief that the court deems reasonable and necessary.

(i) reasonable attorney fees;

(ii) court costs; and

(iii) investigative fees.

(d)

(i) A person who violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.

(ii) A civil penalty authorized under this section may be imposed in any civil action brought by the division, or by the attorney general on behalf of the division.

Part 4 Special Provisions

§ 13-81-401 Severability.

(2) The provisions of this chapter are severable.

Chapter 82 Feminine Hygiene Products

Part 1 General Provisions

§ 13-82-101 Definitions.

As used in this section:

(1) "Chemical" means:

(a) lead;

(b) cadmium;

(d) dioxin (2,3,7,8-tetrachlordibenzo-p-dioxin (TCDD)); or

(e) PFAS.

(2)

(a) "Confidential business information" means an ingredient intentionally added, or a combination of ingredients intentionally added, for which:

(i) the Administrator of the United States Environmental Protection Agency has approved a claim for inclusion on the confidential portion of the Toxic Substances Control Act Chemical Substance Inventory in accordance with 15 U.S.C. Sec. 2607(b); or

(ii) the manufacturer claims is a trade secret, as that term is defined in Section 13-24-2, in accordance with Title 13, Chapter 24, Uniform Trade Secrets Act.

(b) "Confidential business information" does not include a chemical.

(3) "Division" means the Division of Consumer Protection established in Section 13-2-1.

(4) "Ingredient intentionally added" means a chemical, substance, or combination of substances in a menstrual product that serves a technical or functional purpose in the finished menstrual product.

(5) "Manufacturer" means a manufacturer of a menstrual product sold, offered for sale, or distributed in the state.

(6) "Menstrual product" means, whether disposable or reusable:

(a) a tampon;

(b) a sanitary napkin;

(d) another similar product designed for hygiene in connection with the human menstrual cycle.

(7) "Perfluoroalkyl and polyfluoroalkyl substances" or "PFAS" means a substance that is a member of the class of fluorinated organic chemicals containing at least one fully fluorinated carbon atom.

Part 2 Requirements And Prohibited Practices

§ 13-82-201 Feminine hygiene products -- Labeling.

(1) Beginning December 1, 2027, a manufacturer shall include a label on the package of the menstrual product manufactured on or after December 1, 2027, that lists each ingredient intentionally added.

(2)

(a) The label described in Subsection (1) shall:

(i) except as provided in Subsection (2)(b), list each ingredient intentionally added in order of predominance by weight as a percentage of the weight of the menstrual product;

(ii) be in a conspicuous location on the outside packaging of the menstrual product; and

(iii) be in legible type.

(b) If the weight of an ingredient intentionally added is less than 1% of the weight of the menstrual product, the ingredient intentionally added may be listed in any order following the other ingredients intentionally added listed as described in Subsection (2)(a).

(3) Reasonable variations in the amount of an ingredient intentionally added in a menstrual product listed on the label as described in Subsection (2) is permitted.

(4) Nothing in this section prohibits a manufacturer from using technology, including a link to an internet website, to provide the information required under Subsections (1) and (2).

(5)

(a) This section may not be construed to require a manufacturer to disclose confidential business information on the package of a menstrual product or on the manufacturer's website.

(b) If an ingredient intentionally added is confidential business information, the ingredient intentionally added may be listed as described in this section by the common name of the ingredient intentionally added.

(6) A manufacturer shall revise the list required under Subsection (1) no later than:

(a) for a label on the package of a menstrual product, 18 months after the day on which an intentionally added ingredient is added or changed in the menstrual product; or

(b) for a list of intentionally added ingredients using technology as described in Subsection (4), 6 months after the day on which an intentionally added ingredient is added or changed in the menstrual product.

Part 3 Enforcement

§ 13-82-301 Administration and enforcement -- Powers -- Legal counsel -- Fees.

(1) The division shall administer and enforce the provisions of this chapter in accordance with Chapter 2, Division of Consumer Protection.

(2)

(a) In addition to the division's enforcement powers under Chapter 2, Division of Consumer Protection:

(i) the division director may impose an administrative fine of up to $2,500 for each violation of this chapter; and

(ii) the division may bring an action in a court of competent jurisdiction to enforce a provision of this chapter.

(b) In a court action by the division to enforce a provision of this chapter, the court may:

(i) declare that an act or practice violates a provision of this chapter;

(ii) issue an injunction for a violation of this chapter;

(iii) impose a fine of up to $2,500 for each violation of this chapter; or

(iv) award any other relief that the court deems reasonable and necessary.

(3) If a court of competent jurisdiction grants judgment or injunctive relief to the division, the court shall award the division:

(a) reasonable attorney fees;

(b) court costs; and

(4)

(a) A person who violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.

(b) A civil penalty authorized under this section may be imposed in any civil action brought by the division.

(5) All money received for the payment of a fine or civil penalty imposed under this section shall be deposited into the Consumer Protection Education and Training Fund created in Section 13-2-8.

Chapter 83 Virtual Currency Kiosk Regulation

§ 13-83-101 Definitions.

As used in this chapter:

(1) "Transaction hash" means a unique identifier made up of a string of characters that act as a record and provide proof the transaction was verified and added to the blockchain.

(2) "Virtual currency" means a digital representation of value that is used as a medium of exchange, unit of account, or store of value and is not money, whether or not denominated in money.

(3) "Virtual currency address" means an alphanumeric identifier associated with a virtual currency wallet identifying the location to which a virtual currency transaction may be sent.

(4) "Virtual currency kiosk" means an electronic terminal acting as a mechanical agent of the virtual currency kiosk operator to enable the virtual currency kiosk operator to facilitate the exchange of virtual currency for money, bank credit, or other virtual currency.

(5) "Virtual currency kiosk operator" means a person that operates a virtual currency kiosk in this state.

(6) "Virtual currency kiosk transaction" means a transaction conducted or performed, in whole or in part, by electronic means via a virtual currency kiosk to purchase virtual currency with fiat currency or to sell virtual currency for fiat currency.

(7) "Virtual currency wallet" means a software application or other mechanism providing a means to hold, store, or transfer virtual currency.

§ 13-83-102 Transaction limits.

(1) A virtual currency kiosk operator may not accept virtual currency kiosk transactions from a single customer that exceed a cumulative total of:

(a) during the three calendar days following the day on which the customer completes the customer's first virtual currency kiosk transaction with the virtual currency kiosk operator, $2,000 of cash or the equivalent in virtual currency per calendar day; or

(b) after the three-day period described in Subsection 13-83-102(1)(a), $5,000 of cash or the equivalent in virtual currency per calendar day.

(2) Subsection 13-83-102(1) applies to virtual currency kiosk transactions in this state via one or more virtual currency kiosks operated by the same virtual currency kiosk operator.

§ 13-83-103 Disclosures and warnings -- Receipt requirements.

(1) A virtual currency kiosk operator shall disclose in a clear, conspicuous, and easily readable manner in the chosen language of the customer:

(a) all relevant terms and conditions generally associated with the products, services, and activities of the virtual currency kiosk operator and virtual currency; and

(b) that digital assets and transactions conducted through the virtual currency kiosk are not insured or guaranteed by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation.

(2) The virtual currency kiosk operator shall receive acknowledgment of receipt of all disclosures required under this section via confirmation of consent.

(3) Each virtual currency kiosk shall include a fraud prevention warning in English and Spanish, written prominently and in bold type.

(4) The fraud prevention warning described in Subsection 13-83-103(3) shall state: "WARNING: NEVER SEND MONEY TO SOMEONE YOU DO NOT KNOW. THESE TRANSACTIONS ARE IRREVERSIBLE. NO GOVERNMENT AGENCY OR OFFICIAL WILL EVER REQUEST PAYMENT USING THIS KIOSK. IF YOU SUSPECT FRAUD, CALL LOCAL LAW ENFORCEMENT BEFORE PROCEEDING."

(5) After the completion of each transaction, the virtual currency kiosk operator shall provide an individual with a receipt in the language chosen by the customer.

(6) The receipt described in Subsection 13-83-103(5) shall contain:

(a) the virtual currency kiosk operator's name and contact information, including a telephone number to answer questions and register complaints;

(b) the relevant state law enforcement or government agency for reporting fraud;

(d) the transaction hash;

(e) each applicable virtual currency address;

(f) the transaction amount in both virtual currency and United States dollars;

(g) all fees charged;

(h) the exchange rate of the virtual currency to United States dollars;

(i) customer service contact information; and

(j) a statement of the virtual currency kiosk operator's refund policy.

(7) A virtual currency kiosk operator performing business in this state shall provide a toll-free customer service line, available 24 hours per day, seven days per week, and display the number for the toll-free customer service line on the virtual currency kiosk or the virtual currency kiosk screens.

§ 13-83-104 Recordkeeping and law enforcement cooperation.

(1) Each virtual currency kiosk operator shall maintain complete and accurate records of all virtual currency kiosk transactions and related customer information as required under applicable state and federal law.

(2) At a minimum, the records described in Subsection 13-83-104(1) shall be preserved for the period of time required by:

(a) rules made by the division under Section 13-83-106; or

(b) other applicable law.

(3) A virtual currency kiosk operator shall cooperate with law enforcement authorities in the investigation and prevention of fraud and other unlawful activity, including:

(a) promptly complying with lawful subpoenas, court orders, and other official requests for records or information relating to virtual currency kiosk transactions or customers;

(b) responding in good faith to lawful requests from the division or law enforcement relating to fraud involving a virtual currency kiosk; and

(c) designating a point of contact within the operator's organization for communication with the division and law enforcement regarding fraud-related matters.

(4) Upon request by the division, a virtual currency kiosk operator shall make the operator's records available to the division for examination or audit to verify compliance with this chapter.

§ 13-83-105 Annual location reporting.

(1) Each virtual currency kiosk operator shall submit to the division an annual report listing all virtual currency kiosk locations operated by the operator in this state.

(2) The report described in Subsection 13-83-105(1) shall be:

(a) filed in accordance with rules made by the division under Section 13-83-106; and

(b) filed at least once per calendar year.

(3) The report described in Subsection 13-83-105(1) shall include, for each virtual currency kiosk location:

(a) the name of the business or establishment where the virtual currency kiosk is located;

(b) the physical address of the location, including street address, city, and ZIP code;

(d) if applicable, the date on which the virtual currency kiosk ceased operation at that location.

(4) In addition to the annual report required under Subsection 13-83-105(1), a virtual currency kiosk operator shall notify the division within 30 days after:

(a) installing a new virtual currency kiosk at a location in this state; or

(b) removing a virtual currency kiosk from a location in this state.

§ 13-83-106 Enforcement -- Rulemaking.

(1) The division shall administer and enforce the provisions of this part.

(2) The division may, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules:

(a) establishing the time period, format, and content requirements for records maintained under Section 13-83-104; and

(b) establishing the form, content, filing date, and submission procedures for the report described in Section 13-83-105.

(3)

(a) In addition to the division's enforcement powers under Title 13, Chapter 2, Division of Consumer Protection:

(i) the division director may impose an administrative fine of up to $2,500 for each violation of this part; and

(ii) the division may bring an action in court to enforce a provision of this part.

(b) In a court action by the division to enforce a provision of this part, the court may:

(i) declare that the act or practice violates a provision of this part;

(ii) enjoin actions that violate this part;

(iii) order disgorgement of any money received in violation of this part;

(iv) order payment of disgorged money to an injured purchaser or consumer;

(v) impose a civil penalty of up to $2,500 for each violation of this part;

(vi) award actual damages to an injured purchaser or consumer; and

(vii) award any other relief that the court deems reasonable and necessary.

(i) reasonable attorney fees;

(ii) court costs; and

(iii) investigative fees.

(4)

(a) A person who violates an administrative or court order issued for a violation of this part is subject to a civil penalty of no more than $5,000 for each violation.

(b) A civil penalty authorized under this section may be imposed in a civil action.

(5) A violation of this part constitutes a deceptive act or practice under Title 13, Chapter 11, Utah Consumer Sales Practices Act.