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490
10-3-209
13-2-101
13-2-1
13-2-1
13-2-2
13-2-3
13-2-4
13-2-5
13-2-6
13-2-7
13-2-8
13-2-9
13-2-10
13-2-11
13-11-8
13-11-16
13-11-17
13-15-101
13-15-102
13-15-201
13-15-301
13-15-303
13-21-1
13-21-2
13-21-3
13-21-3.5
13-21-4
13-21-5
13-21-6
13-21-7
13-21-7.5
13-21-8
13-21-9
13-22-1
13-22-2
13-22-3
13-22-4
13-22-5
13-22-9
13-22-11
13-22-12
13-22-13
13-22-14
13-22-15
13-22-16
13-22-17
13-22-19
13-22-22
13-22-23
13-22-24
13-23-1
13-23-2
13-23-3
13-23-4
13-23-5
13-23-6
13-23-7
13-23-8
13-25a-101
13-25a-105
13-26-1
13-26-2
13-26-3
13-26-103
13-26-4
13-26-5
13-26-8
13-26-10
13-26-11
13-28-7
13-32a-101
13-32a-102.5
13-32a-106.5
13-32a-112.1
13-34-102
13-34-103
13-34-104
13-34-105
13-34-106
13-34-108
13-34-109
13-34-111
13-34-201
13-34-202
13-34-302
13-41-202
13-42-101
13-42-102
13-42-103
13-42-104
13-42-105
13-42-106
13-42-107
13-42-108
13-42-109
13-42-110
13-42-111
13-42-112
13-42-113
13-42-114
13-42-118
13-42-119
13-42-121
13-42-122
13-42-123
13-42-128
13-42-129
13-42-132
13-42-133
13-42-134
13-42-135
13-42-140
13-49-101
13-49-102
13-49-201
13-49-202
13-49-203
13-49-204
13-49-301
13-49-302
13-49-303
13-49-304
13-49-305
13-49-306
13-49-401
13-49-402
13-49-403
13-49-404
13-51-101
13-51-102
13-51-104
13-51-104.1
13-51-105
13-51-110
13-51-201
13-51-203
13-51-204
13-52-101
13-52-102
13-52-202
13-52-207
13-52-301
13-52-302
13-53-101
13-53-103
13-53-104
13-53-105
13-53-108
13-53-110
13-57-101
13-57-102
13-57-201
13-57-201.1
13-57-202
13-57-203
13-57-302
13-57-401
13-57-402
13-57-502
13-61-101
13-64-101
13-64-301
13-65-203
13-68-101
13-68-201
13-68-202
13-68-203
13-68-204
13-68-205
13-68-301
13-68-302
13-68-303
13-68-304
13-68-305
13-68-401
13-68-402
13-68-403
13-68-404
13-70-101
13-70-301
13-71-101
13-71-301
13-72a-101
13-72a-204
13-76-101
13-77-101
13-77-102
13-78-101
13-78-102
13-78-103
13-78-104
16-6a-102
16-6a-203
16-6a-1503
17-70-401
20A-11-104
36-11-102
51-9-801
54-8b-18
58-16a-305
63G-2-305
63G-26-103
71A-4-101
76-5c-401
76-5c-402
78B-3-112
0
Consumer Protection Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Todd Weiler
House Sponsor: Ashlee Matthews
LONG TITLE
General Description:
This bill amends provisions relating to consumer protection.
Highlighted Provisions:
This bill:
defines terms;
renumbers Title 13, Chapter 2, Division of Consumer Protection;
renumbers Title 13, Chapter 21, Credit Services Organizations Act;
renumbers Title 13, Chapter 22, Charitable Solicitations Act;
renumbers and renames Title 13, Chapter 23, Health Spa Services Protection Act;
renumbers Title 13, Chapter 26, Telephone Fraud Prevention Act;
adds Title 13, Chapter 77, Generative Artificial Intelligence - Consumer Disclosures and
Enforcement, to the list of chapters the Division of Consumer Protection (division)
enforces;
amends the division's investigatory authority to investigate conduct related to statutes that
the division administers and enforces;
amends filing requirements a person makes with the division;
amends provisions relating to an entity's surety bond and certificate of deposit;
provides the circumstances under which the division may recover costs from a surety
bond or a certificate of deposit;
provides that a person correct information contained in a filing the person makes with the
division if the information becomes incorrect or incomplete;
provides that certain persons may not represent that the division or the state endorses or
approves the person;
clarifies that the issuance of certain documents does not constitute an approval or
endorsement by the division or the state;
provides the circumstances under which the division may deny, suspend, or revoke
certain documents;
requires that a person that registers with the division maintain a registered agent in this
state;
provides requirements for the information a person shall maintain for a registered agent in
this state;
amends provisions relating to the division's enforcement powers and penalties the
division may impose;
provides the actions a court may take when the division brings an enforcement action;
provides the circumstances under which a court may order disgorgement of money;
amends charitable solicitation financial report requirements;
changes references in Title 13, Chapter 23, Health Spa Service Protection Act from
"health spa" to "fitness center";
provides registration and renewal requirements for certain entities and individuals;
provides the length of a term for certain registrations;
amends provisions relating to criminal background checks for an entity applying for
registration with the division;
provides that a seller or a seller's solicitor provide a consumer certain disclosures;
provides the circumstances under which the attorney general shall give legal advice to
and act as counsel for the division;
updates terminology to refer to the division;
removes redundant provisions from provisions the division enforces;
amends provisions relating to an annual report a person is required to file with the
division;
removes references to the attorney general's enforcement powers in relation to the
division; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
10-3-209
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 447
13-11-8
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 442
13-11-16
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapters 302, 442
13-11-17
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 442
13-15-102
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2022,
Chapter 243
13-15-201
Effective
05/06/26
, as enacted by Laws of Utah 2022, Chapter 243
13-15-301
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2022,
Chapter 243
13-25a-105
Effective
05/06/26
, as last amended by Laws of Utah 2021, Chapter 289
13-28-7
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 302
13-32a-102.5
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 284
13-32a-106.5
Effective
05/06/26
, as last amended by Laws of Utah 2022, Chapter 201
13-34-102
Effective
05/06/26
, as repealed and reenacted by Laws of Utah 2023,
Chapter 458
13-34-103
Effective
05/06/26
, as repealed and reenacted by Laws of Utah 2023,
Chapter 458
13-34-104
Effective
05/06/26
, as repealed and reenacted by Laws of Utah 2023,
Chapter 458
13-34-105
Effective
05/06/26
, as repealed and reenacted by Laws of Utah 2023,
Chapter 458
13-34-106
Effective
05/06/26
, as repealed and reenacted by Laws of Utah 2023,
Chapter 458
13-34-108
Effective
05/06/26
, as repealed and reenacted by Laws of Utah 2023,
Chapter 458
13-34-109
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 19
13-34-111
Effective
05/06/26
, as repealed and reenacted by Laws of Utah 2023,
Chapter 458
13-34-201
Effective
05/06/26
, as repealed and reenacted by Laws of Utah 2023,
Chapter 458
13-34-202
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 458
13-34-302
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 458
13-41-202
Effective
05/06/26
, as last amended by Laws of Utah 2021, Chapter 226
13-42-102
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-103
Effective
05/06/26
, as enacted by Laws of Utah 2006, Chapter 154
13-42-104
Effective
05/06/26
, as enacted by Laws of Utah 2006, Chapter 154
13-42-105
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-106
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-107
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-108
Effective
05/06/26
, as enacted by Laws of Utah 2006, Chapter 154
13-42-109
Effective
05/06/26
, as last amended by Laws of Utah 2009, Chapter 183
13-42-110
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-111
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-112
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-113
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-114
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-118
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-119
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-121
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-122
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-123
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-128
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-129
Effective
05/06/26
, as enacted by Laws of Utah 2006, Chapter 154
13-42-132
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-133
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-134
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-42-135
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 152
13-49-102
Effective
05/06/26
, as last amended by Laws of Utah 2015, Chapter 236
13-49-201
Effective
05/06/26
, as last amended by Laws of Utah 2016, Chapter 348
13-49-202
Effective
05/06/26
, as last amended by Laws of Utah 2015, Chapter 236
13-49-204
Effective
05/06/26
, as last amended by Laws of Utah 2015, Chapter 236
13-49-301
Effective
05/06/26
, as last amended by Laws of Utah 2015, Chapter 236
13-49-302
Effective
05/06/26
, as enacted by Laws of Utah 2012, Chapter 375
13-49-303
Effective
05/06/26
, as last amended by Laws of Utah 2015, Chapter 236
13-49-305
Effective
05/06/26
, as last amended by Laws of Utah 2015, Chapter 236
13-49-401
Effective
05/06/26
, as enacted by Laws of Utah 2012, Chapter 375
13-49-402
Effective
05/06/26
, as last amended by Laws of Utah 2015, Chapter 236
13-49-403
Effective
05/06/26
, as enacted by Laws of Utah 2012, Chapter 375
13-49-404
Effective
05/06/26
, as enacted by Laws of Utah 2012, Chapter 375
13-51-102
Effective
05/06/26
, as last amended by Laws of Utah 2019, Chapter 459
13-51-104
Effective
05/06/26
, as enacted by Laws of Utah 2015, Chapter 461
13-51-105
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 351
13-52-102
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 181
13-52-202
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 181
13-52-207
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 136
13-52-301
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 136
13-52-302
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 181
13-53-103
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 51
13-53-104
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 51
13-53-105
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 51
13-53-108
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 51
13-53-110
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 51
13-57-102
Effective
05/06/26
, as enacted by Laws of Utah 2020, Chapter 118
13-57-201
Effective
05/06/26
, as enacted by Laws of Utah 2020, Chapter 118
13-57-202
Effective
05/06/26
, as enacted by Laws of Utah 2020, Chapter 118
13-57-203
Effective
05/06/26
, as enacted by Laws of Utah 2020, Chapter 118
13-57-302
Effective
05/06/26
, as enacted by Laws of Utah 2020, Chapter 118
13-57-401
Effective
05/06/26
, as enacted by Laws of Utah 2020, Chapter 118
13-57-402
Effective
05/06/26
, as enacted by Laws of Utah 2020, Chapter 118
13-57-502
Effective
05/06/26
, as enacted by Laws of Utah 2020, Chapter 118
13-61-101
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 186
13-64-101
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 509
13-64-301
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 509
13-65-203
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 377
13-68-101
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-201
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-202
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-204
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-301
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-302
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-303
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-401
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 209
13-68-402
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-403
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-404
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-70-101
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 132
13-70-301
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 132
13-71-101
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 206
13-71-301
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 206
13-72a-101
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 269
13-72a-204
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 269
13-76-101
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 446
13-77-101
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 465
13-77-102
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 465
13-78-101
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 237
13-78-102
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 237
13-78-103
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 237
13-78-104
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 237
16-6a-102
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 9
16-6a-203
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 102
16-6a-1503
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 102
17-70-401
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 13
20A-11-104
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 447
36-11-102
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 16
51-9-801
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 167
54-8b-18
Effective
05/06/26
, as enacted by Laws of Utah 1999, Chapter 113
58-16a-305
Effective
05/06/26
, as last amended by Laws of Utah 2012, Chapter 256
63G-2-305
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
63G-26-103
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 416
71A-4-101
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 231
76-5c-401
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
Chapter 173
76-5c-402
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
Chapter 173
78B-3-112
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 365
ENACTS:
13-2-101
Effective
05/06/26
, Utah Code Annotated 1953
13-15-303
Effective
05/06/26
, Utah Code Annotated 1953
13-26-103
Effective
05/06/26
, Utah Code Annotated 1953
13-49-306
Effective
05/06/26
, Utah Code Annotated 1953
13-51-104.1
Effective
05/06/26
, Utah Code Annotated 1953
13-51-110
Effective
05/06/26
, Utah Code Annotated 1953
13-57-201.1
Effective
05/06/26
, Utah Code Annotated 1953
13-68-205
Effective
05/06/26
, Utah Code Annotated 1953
RENUMBERS AND AMENDS:
13-2-102
Effective
05/06/26
Superseded
07/01/26
, (Renumbered from 13-2-1, as last
amended by Laws of Utah 2025, Chapters 51, 181, 237, and 269)
13-2-102
Effective
07/01/26
, (Renumbered from 13-2-1, as last amended by Laws of
Utah 2025, Chapter 468)
13-2-103
Effective
05/06/26
, (Renumbered from 13-2-2, as last amended by Laws of
Utah 1990, Chapter 93)
13-2-104
Effective
05/06/26
, (Renumbered from 13-2-3, as last amended by Laws of
Utah 2021, Chapter 344)
13-2-105
Effective
05/06/26
, (Renumbered from 13-2-4, as enacted by Laws of Utah
1983, Chapter 57)
13-2-106
Effective
05/06/26
, (Renumbered from 13-2-5, as last amended by Laws of
Utah 2008, Chapter 382)
13-2-107
Effective
05/06/26
, (Renumbered from 13-2-6, as last amended by Laws of
Utah 2025, Chapter 442)
13-2-108
Effective
05/06/26
, (Renumbered from 13-2-7, as last amended by Laws of
Utah 1994, Chapter 177)
13-2-109
Effective
05/06/26
, (Renumbered from 13-2-8, as last amended by Laws of
Utah 2023, Chapter 375)
13-2-110
Effective
05/06/26
, (Renumbered from 13-2-9, as last amended by Laws of
Utah 2012, Chapter 347)
13-2-111
Effective
05/06/26
, (Renumbered from 13-2-10, as enacted by Laws of
Utah 2023, Chapter 76)
13-2-112
Effective
05/06/26
, (Renumbered from 13-2-11, as enacted by Laws of
Utah 2024, Chapter 101)
13-21-101
Effective
05/06/26
, (Renumbered from 13-21-2, as last amended by Laws
of Utah 2011, Chapter 289)
13-21-102
Effective
05/06/26
, (Renumbered from 13-21-3, as last amended by Laws
of Utah 2009, Chapter 183)
13-21-103
Effective
05/06/26
, (Renumbered from 13-21-3.5, as enacted by Laws of
Utah 1994, Chapter 186)
13-21-104
Effective
05/06/26
, (Renumbered from 13-21-4, as last amended by Laws
of Utah 2025, Chapter 302)
13-21-105
Effective
05/06/26
, (Renumbered from 13-21-5, as enacted by Laws of
Utah 1985, Chapter 29)
13-21-106
Effective
05/06/26
, (Renumbered from 13-21-6, as last amended by Laws
of Utah 1988, Chapter 96)
13-21-107
Effective
05/06/26
, (Renumbered from 13-21-7, as last amended by Laws
of Utah 2007, Chapter 306)
13-21-108
Effective
05/06/26
, (Renumbered from 13-21-7.5, as enacted by Laws of
Utah 2024, Chapter 109)
13-21-109
Effective
05/06/26
, (Renumbered from 13-21-8, as last amended by Laws
of Utah 2024, Chapter 158)
13-21-110
Effective
05/06/26
, (Renumbered from 13-21-9, as last amended by Laws
of Utah 1988, Chapter 96)
13-22-101
Effective
05/06/26
, (Renumbered from 13-22-2, as last amended by Laws
of Utah 2024, Chapter 102)
13-22-102
Effective
05/06/26
, (Renumbered from 13-22-3, as last amended by Laws
of Utah 2024, Chapter 158)
13-22-103
Effective
05/06/26
, (Renumbered from 13-22-4, as last amended by Laws
of Utah 2024, Chapter 102)
13-22-104
Effective
05/06/26
, (Renumbered from 13-22-5, as last amended by Laws
of Utah 2024, Chapter 102)
13-22-105
Effective
05/06/26
, (Renumbered from 13-22-9, as last amended by Laws
of Utah 2024, Chapter 102)
13-22-106
Effective
05/06/26
, (Renumbered from 13-22-11, as last amended by
Laws of Utah 2024, Chapter 102)
13-22-107
Effective
05/06/26
, (Renumbered from 13-22-12, as last amended by
Laws of Utah 2024, Chapter 102)
13-22-108
Effective
05/06/26
, (Renumbered from 13-22-13, as last amended by
Laws of Utah 2024, Chapter 102)
13-22-109
Effective
05/06/26
, (Renumbered from 13-22-14, as last amended by
Laws of Utah 2024, Chapter 102)
13-22-110
Effective
05/06/26
, (Renumbered from 13-22-15, as repealed and
reenacted by Laws of Utah 2024, Chapter 102)
13-22-111
Effective
05/06/26
, (Renumbered from 13-22-16, as last amended by
Laws of Utah 2024, Chapter 102)
13-22-112
Effective
05/06/26
, (Renumbered from 13-22-17, as last amended by
Laws of Utah 2024, Chapter 102)
13-22-113
Effective
05/06/26
, (Renumbered from 13-22-19, as enacted by Laws of
Utah 1993, Chapter 280)
13-22-114
Effective
05/06/26
, (Renumbered from 13-22-22, as last amended by
Laws of Utah 2024, Chapter 102)
13-22-115
Effective
05/06/26
, (Renumbered from 13-22-23, as enacted by Laws of
Utah 2001, Chapter 210)
13-22-116
Effective
05/06/26
, (Renumbered from 13-22-24, as enacted by Laws of
Utah 2024, Chapter 102)
13-23-101
Effective
05/06/26
, (Renumbered from 13-23-2, as last amended by Laws
of Utah 2022, Chapters 400, 415)
13-23-102
Effective
05/06/26
, (Renumbered from 13-23-3, as last amended by Laws
of Utah 2022, Chapter 400)
13-23-103
Effective
05/06/26
, (Renumbered from 13-23-4, as last amended by Laws
of Utah 2022, Chapter 274)
13-23-104
Effective
05/06/26
, (Renumbered from 13-23-5, as last amended by Laws
of Utah 2022, Chapter 400)
13-23-105
Effective
05/06/26
, (Renumbered from 13-23-6, as last amended by Laws
of Utah 2022, Chapter 400)
13-23-106
Effective
05/06/26
, (Renumbered from 13-23-7, as last amended by Laws
of Utah 2021, Chapter 266)
13-23-107
Effective
05/06/26
, (Renumbered from 13-23-8, as last amended by Laws
of Utah 2022, Chapter 400)
13-26-101
Effective
05/06/26
, (Renumbered from 13-26-2, as last amended by Laws
of Utah 2022, Chapter 324)
13-26-102
Effective
05/06/26
, (Renumbered from 13-26-3, as last amended by Laws
of Utah 2022, Chapter 324)
13-26-104
Effective
05/06/26
, (Renumbered from 13-26-4, as last amended by Laws
of Utah 2022, Chapter 324)
13-26-105
Effective
05/06/26
, (Renumbered from 13-26-5, as last amended by Laws
of Utah 2022, Chapter 324)
13-26-106
Effective
05/06/26
, (Renumbered from 13-26-8, as last amended by Laws
of Utah 2022, Chapter 324)
13-26-107
Effective
05/06/26
, (Renumbered from 13-26-10, as enacted by Laws of
Utah 1991, Chapter 184)
13-26-108
Effective
05/06/26
, (Renumbered from 13-26-11, as last amended by
Laws of Utah 2022, Chapter 324)
REPEALS:
13-15-101
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2022,
Chapter 243
13-21-1
Effective
05/06/26
, as enacted by Laws of Utah 1985, Chapter 29
13-22-1
Effective
05/06/26
, as enacted by Laws of Utah 1987, Chapter 122
13-23-1
Effective
05/06/26
, as enacted by Laws of Utah 1987, Chapter 105
13-25a-101
Effective
05/06/26
, as enacted by Laws of Utah 1996, Chapter 26
13-26-1
Effective
05/06/26
, as enacted by Laws of Utah 1990, Chapter 154
13-32a-101
Effective
05/06/26
, as last amended by Laws of Utah 2022, Chapter 201
13-32a-112.1
Effective
05/06/26
, as last amended by Laws of Utah 2022, Chapter 201
13-42-101
Effective
05/06/26
, as enacted by Laws of Utah 2006, Chapter 154
13-42-140
Effective
05/06/26
, as enacted by Laws of Utah 2006, Chapter 154
13-49-101
Effective
05/06/26
, as enacted by Laws of Utah 2012, Chapter 375
13-49-203
Effective
05/06/26
, as last amended by Laws of Utah 2016, Chapter 348
13-49-304
Effective
05/06/26
, as last amended by Laws of Utah 2015, Chapter 236
13-51-101
Effective
05/06/26
, as enacted by Laws of Utah 2015, Chapter 461
13-51-201
Effective
05/06/26
, as last amended by Laws of Utah 2018, Chapter 111
13-51-203
Effective
05/06/26
, as last amended by Laws of Utah 2018, Chapter 111
13-51-204
Effective
05/06/26
, as enacted by Laws of Utah 2016, Chapter 359
13-52-101
Effective
05/06/26
, as enacted by Laws of Utah 2018, Chapter 290
13-53-101
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 51
13-57-101
Effective
05/06/26
, as enacted by Laws of Utah 2020, Chapter 118
13-68-203
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-304
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
13-68-305
Effective
05/06/26
, as enacted by Laws of Utah 2023, Chapter 536
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
10-3-209
is amended to read:
10-3-209
Effective
05/06/26
. Personal use expenditure -- Authorized and
prohibited uses of campaign funds -- Enforcement -- Penalties.
(1)
Unless a municipality adopts by ordinance more stringent definitions, the following are
defined terms for the purposes of this section:
(a)
"Candidate" means a person who:
(i)
files a declaration of candidacy for municipal office; or
(ii)
receives contributions, makes expenditures, or gives consent for any other person
to receive contributions or make expenditures to bring about the person's
nomination or election to a public office.
(b)
"Officeholder" means a person who is elected to and currently holds a municipal
office.
(c)
(i)
"Personal use expenditure" means an expenditure that:
(A)
is not excluded from the definition of personal use expenditure by Subsection
(2)
and primarily furthers a personal interest of a candidate or officeholder or a
candidate's or officeholder's family, which interest is not connected with the
performance of an activity as a candidate or an activity or duty of an
officeholder; or
(B)
would cause the candidate or officeholder to recognize the expenditure as
taxable income under federal law.
(ii)
"Personal use expenditure" includes:
(A)
a mortgage, rent, utility, or vehicle payment;
(B)
a household food item or supply;
(C)
a clothing expense, except:
(I)
clothing bearing the candidate's name or campaign slogan or logo that is
used in the candidate's campaign;
(II)
clothing bearing the logo or name of a jurisdiction, district, government
organization, government entity, caucus, or political party that the
officeholder represents or of which the officeholder is a member; or
(III)
repair or replacement of clothing that is damaged while the candidate or
officeholder is engaged in an activity of a candidate or officeholder;
(D)
an admission to a sporting, artistic, or recreational event or other form of
entertainment;
(E)
dues, fees, or gratuities at a country club, health club, or recreational facility;
(F)
a salary payment made to a candidate, officeholder, or a person who has not
provided a bona fide service to a candidate or officeholder;
(G)
a vacation;
(H)
a vehicle expense;
(I)
a meal expense;
(J)
a travel expense;
(K)
a payment of an administrative, civil, or criminal penalty;
(L)
a satisfaction of a personal debt;
(M)
a personal service, including the service of an attorney, accountant, physician,
or other professional person;
(N)
a membership fee for a professional or service organization; and
(O)
a payment in excess of the fair market value of the item or service purchased.
(2)
As used in this section, "personal use expenditure" does not mean an expenditure made:
(a)
for a political purpose;
(b)
for candidacy for public office;
(c)
to fulfill a duty or activity of an officeholder;
(d)
for a donation to a registered political party;
(e)
for a contribution to another candidate's campaign account, including sponsorship of
or attendance at an event, the primary purpose of which is to solicit a contribution for
another candidate's campaign account;
(f)
to return all or a portion of a contribution to a donor;
(g)
for the following items, if made in connection with the candidacy for public office or
an activity or duty of an officeholder:
(i)
(A)
a mileage allowance at the rate established by the Division of Finance under
Section
63A-3-107
; or
(B)
for motor fuel or special fuel, as defined in Section
59-13-102
;
(ii)
a meal expense;
(iii)
a travel expense, including an expense incurred for airfare or a rental vehicle;
(iv)
a payment for a service provided by an attorney or accountant;
(v)
a tuition payment or registration fee for participation in a meeting or conference;
(vi)
a gift;
(vii)
a payment for the following items in connection with an office space:
(A)
rent;
(B)
utilities;
(C)
a supply; or
(D)
furnishing;
(viii)
a booth at a meeting or event; or
(ix)
educational material;
(h)
to purchase or mail informational material, a survey, or a greeting card;
(i)
for a donation to a charitable organization, as defined by Section
13-22-2
13-22-101
,
including admission to or sponsorship of an event, the primary purpose of which is
charitable solicitation, as defined in Section
13-22-2
13-22-101
;
(j)
to repay a loan a candidate makes from the candidate's personal account to the
candidate's campaign account;
(k)
to pay membership dues to a national organization whose primary purpose is to
address general public policy;
(l)
for admission to or sponsorship of an event, the primary purpose of which is to
promote the social, educational, or economic well-being of the state or the candidate's
or officeholder's community;
(m)
for one or more guests of an officeholder or candidate to attend an event, meeting,
or conference described in this Subsection
(2)
; or
(n)
to pay childcare expenses of:
(i)
a candidate while the candidate is engaging in campaign activity; or
(ii)
an officeholder while the officeholder is engaging in the duties of an officeholder.
(3)
(a)
A municipality may adopt an ordinance prohibiting a personal use expenditure by
a candidate with requirements that are more stringent than the requirements provided
in Subsection
(4)
.
(b)
The municipality may adopt definitions that are more stringent than those provided
in Subsection
(1)
or
(2)
.
(c)
If a municipality fails to adopt a personal use expenditure ordinance described in
Subsection
(3)(a)
, a candidate shall comply with the requirements contained in
Subsection
(4)
.
(4)
A candidate or an officeholder may not use money deposited into a campaign account
for:
(a)
a personal use expenditure; or
(b)
an expenditure prohibited by law.
(5)
A municipality may enforce this section by adopting an ordinance:
(a)
to provide for the evaluation of a campaign finance statement to identify a personal
use expenditure; and
(b)
to commence informal adjudicative proceedings if, after an evaluation described in
Subsection
(5)(a)
, there is probable cause to believe that a candidate or officeholder
has made a personal use expenditure.
(6)
If, in accordance with the proceedings described in Subsection
(5)(b)
established in
municipal ordinance, a municipality determines that a candidate or officeholder has
made a personal use expenditure, the municipality:
(a)
may require the candidate or officeholder to:
(i)
remit an administrative penalty of an amount equal to 50% of the personal use
expenditure to the municipality; and
(ii)
deposit the amount of the personal use expenditure into the campaign account
from which the personal use expenditure was disbursed; and
(b)
shall deposit the money received under Subsection
(6)(a)(i)
into the municipal
general fund.
Section 2. Section
13-2-101
is enacted to read:
1. General Provisions
13-2-101
Effective
05/06/26
. 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
.
Section 3. Section
13-2-102
, which is renumbered from Section 13-2-1 is renumbered
and amended to read:
13-2-1
13-2-102
Effective
05/06/26
Superseded
07/01/26
. 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;
(c)
Chapter 15, Business Opportunity Disclosure 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,
Health Spa Services Protection Act
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
or
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;
and
(dd)
Chapter 77, Generative Artificial Intelligence - Consumer Disclosures and
Enforcement; and
(dd)
(ee)
Chapter 78, Earned Wage Access Services Act.
(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 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)
.
Section 4. Section
13-2-102
, which is renumbered from Section 13-2-1 is renumbered
and amended to read:
13-2-1
13-2-102
Effective
07/01/26
. 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;
(c)
Chapter 15, Business Opportunity Disclosure 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,
Health Spa Services Protection Act
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
or
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 78, Earned Wage Access Services Act;
and
(ee)
Chapter 77, Generative Artificial Intelligence - Consumer Disclosures and
Enforcement; and
(ee)
(ff)
Chapter 81, Utah Digital Choice Act.
(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 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)
.
Section 5. Section
13-2-103
, which is renumbered from Section 13-2-2 is renumbered
and amended to read:
13-2-2
13-2-103
Effective
05/06/26
. 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.
Section 6. Section
13-2-104
, which is renumbered from Section 13-2-3 is renumbered
and amended to read:
13-2-3
13-2-104
Effective
05/06/26
. 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
investigations
an investigation
if
they
the investigation
reasonably
require
requires
expertise beyond that normally required for division personnel.
(4)
(a)
An
Subject to Subsection
(4)(b)
, the director may designate an
investigator
employed
pursuant to
in accordance with
Subsection
(3)
may be designated
as
a
special function officer, as
that term is
defined in Section
53-13-105
, by the director,
.
(b)
but
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.
Section 7. Section
13-2-105
, which is renumbered from Section 13-2-4 is renumbered
and amended to read:
13-2-4
13-2-105
Effective
05/06/26
. Annual report -- Budget.
(1)
On or before
the 1st day of October
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.
Section 8. Section
13-2-106
, which is renumbered from Section 13-2-5 is renumbered
and amended to read:
13-2-5
13-2-106
Effective
05/06/26
. Powers of director.
The director
has authority to
may
:
(1)
in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, issue
rules to administer and enforce the chapters listed in Section
13-2-1
13-2-102
;
(2)
investigate
the activities of any business
conduct
governed by the laws
administered
and enforced by
the division
administers and enforces
;
(3)
take administrative and judicial action against
persons in violation of the division rules
and the laws administered and enforced by it
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
any
an
organization
providing such services
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.
Section 9. Section
13-2-107
, which is renumbered from Section 13-2-6 is renumbered
and amended to read:
13-2-6
13-2-107
Effective
05/06/26
.
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.
(1)
(2)
In accordance with Title 63G, Chapter 4, Administrative Procedures Act, the
division
shall have authority to
may
convene administrative hearings, issue cease and
desist orders, and impose fines under all the chapters identified in Section
13-2-1
13-2-102
.
(2)
(3)
A person
who
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.
(3)
(4)
If the division has reasonable cause to believe that a person has violated or is
violating any chapter listed in Section
13-2-1
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
(3)(c)(iii)
(4)(c)(iii)
, if the presiding officer
finds that there is not substantial evidence that the recipient violated a chapter
listed in Section
13-2-1
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
(3)(c)(iv)
(4)(c)(iv)
, if the presiding officer
finds that there is substantial evidence that the recipient violated a chapter listed in
Section
13-2-1
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 violated allows for an administrative fine, after a citation becomes
final, the director may impose the administrative fine.
(4)
(5)
(a)
A person
who
that
has violated, is violating, or has attempted
to violate
a chapter identified in Section
13-2-1
13-2-102
is subject to the division's
jurisdiction if:
(i)
(a)
the violation or attempted violation is committed wholly or partly within the state;
(ii)
(b)
conduct committed outside the state constitutes an attempt to commit a violation
within the state; or
(iii)
(c)
transactional resources located within the state are used by the offender to
directly or indirectly facilitate a violation or attempted violation.
(b)
As used in this section, "transactional resources" means:
(i)
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;
(ii)
a telephone or facsimile transmission device;
(iii)
an Internet connection by a resident or inhabitant of this state with a resident- or
nonresident-maintained Internet site;
(iv)
a business office or private residence used for a business-related purpose;
(v)
an account with or services of a financial institution;
(vi)
the services of a common or private carrier; or
(vii)
the use of a city, county, or state asset or facility, including a road or highway.
(5)
(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.
(6)
(7)
(a)
An administrative action filed under this chapter or a chapter listed in Section
13-2-1
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 listed in Section
13-2-1
13-2-102
shall be commenced no later than five years after the day on which the alleged
violation occurs.
(c)
The provisions of this Subsection
(6)
(7)
control over the provisions of Title 78B,
Chapter 2, Statutes of Limitations.
(7)
(8)
When granting a judgment in the division's favor in connection with the division's
exercise of any authority described in Section
13-2-5
13-2-106
or
13-2-6
13-2-107
, a
court shall award:
(a)
reasonable attorney fees;
(b)
court costs;
(c)
costs of investigation; and
(d)
any other relief the court deems appropriate.
Section 10. Section
13-2-108
, which is renumbered from Section 13-2-7 is renumbered
and amended to read:
13-2-7
13-2-108
Effective
05/06/26
. Violation of restraining or injunctive
order -- Civil penalty.
If
any
a person violates a
restraining order,
any
a
chapter
administered by
the division
administers
, or
an
injunction granted under this chapter
is violated
, the division may submit a
motion for, or the court on
its
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
is violated
, if the
party has
received
person receives
notice of the restraining or injunctive order.
Section 11. Section
13-2-109
, which is renumbered from Section 13-2-8 is renumbered
and amended to read:
13-2-8
13-2-109
Effective
05/06/26
. 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 listed in Section
13-2-1
13-2-102
,
the
division shall deposit into the Consumer Protection Education and Training Fund
all
money not distributed as consumer restitution that
is received by the division
the
division receives
from
:
(i)
administrative fines and settlements
,
;
(ii)
from
criminal restitution
,
;
or
(iii)
from
civil damages, forfeitures, penalties, and settlements when the division
receives the money on
its
the division's
own behalf and not in a representative
capacity
, shall be deposited into the fund
.
(b)
Any
The division may maintain any
portion of the
fund may be maintained
Consumer Protection Education and Training Fund
in an interest-bearing account.
(c)
All
The division shall deposit all
interest earned on fund money
shall be deposited
into the
fund
Consumer Protection Education and Training Fund
.
(3)
Notwithstanding
Title 63J, Chapter 1, Budgetary Procedures Act
, the division may use
the
fund
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
fund
Consumer Protection Education and Training Fund
exceeds
$1,000,000 at the close of any fiscal year, the
division shall transfer the
excess
shall be
transferred
to the General Fund.
Section 12. Section
13-2-110
, which is renumbered from Section 13-2-9 is renumbered
and amended to read:
13-2-9
13-2-110
Effective
05/06/26
. 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
.
Section 13. Section
13-2-111
, which is renumbered from Section 13-2-10 is renumbered
and amended to read:
13-2-10
13-2-111
Effective
05/06/26
. Social credit score reporting system --
Rulemaking -- Referral to other agencies.
(1)
As used in this section:
(a)
"Division" means the Division of Consumer Protection.
(b)
(a)
"Financial institution" means the same as that term is defined in Section
7-1-103
.
(c)
(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.
Section 14. Section
13-2-112
, which is renumbered from Section 13-2-11 is renumbered
and amended to read:
13-2-11
13-2-112
Effective
05/06/26
. 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
13-2-1
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)
.
(c)
"Filer" means a person who files a consumer complaint.
(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
is reclassified
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;
(C)
bank account information;
(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
.
Section 15. Section
13-11-8
is amended to read:
13-11-8
Effective
05/06/26
. Powers of division.
In addition to the authority described in Sections
13-2-5
13-2-106
and
13-2-6
13-2-107
,
the division may conduct research, hold public hearings, make inquiries, and publish studies
relating to consumer sales acts or practices.
Section 16. Section
13-11-16
is amended to read:
13-11-16
Effective
05/06/26
. 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
13-2-5
13-2-106
and
13-2-6
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
.
Section 17. Section
13-11-17
is amended to read:
13-11-17
Effective
05/06/26
. 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;
(c)
order disgorgement of money or any thing of value received in violation of 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;
(C)
strike or limit the application of unconscionable clauses of contracts to avoid
an unconscionable result;
(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
13-2-8
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;
(c)
cooperation by the supplier in an inquiry or investigation conducted by the division
concerning 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.
Section 18. Section
13-15-102
is amended to read:
13-15-102
Effective
05/06/26
. 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
of the Department of Commerce
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
.
Section 19. Section
13-15-201
is amended to read:
13-15-201
Effective
05/06/26
. 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
(ii)
(iii)
pay a filing fee as determined by the division in accordance with Section
63J-1-504
.
(c)
A proof of disclosure receipt is valid for one year after the day on which the division
issues the receipt.
(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;
(C)
the name of the franchise;
(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;
and
(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
determined by
the division
sets
in accordance with Section
63J-1-504
, not to exceed $100
.
(c)
A seller who does not qualify for a proof notice receipt under this Subsection
(2)
is
subject to Subsection
(1)
.
(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.
Section 20. Section
13-15-301
is amended to read:
13-15-301
Effective
05/06/26
. 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)
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)
(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.
(4)
(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
(c)
investigative fees.
(5)
(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 attorney general on behalf of
the division.
(6)
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
.
Section 21. Section
13-15-303
is enacted to read:
13-15-303
Effective
05/06/26
. 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.
Section 22. Section
13-21-101
, which is renumbered from Section 13-21-2 is renumbered
and amended to read:
1. General Provisions
13-21-2
13-21-101
Effective
05/06/26
. 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.
(2)
(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.
(3)
(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
(3)(a)(i)
(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
(3)(a)
(5)(a)
within
the course and scope of the person's practice as an attorney; and
(B)
the services described in Subsection
(3)(a)
(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
(3)(a)
(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
.
(4)
(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.
Section 23. Section
13-21-102
, which is renumbered from Section 13-21-3 is renumbered
and amended to read:
13-21-3
13-21-102
Effective
05/06/26
. Credit services organizations --
Prohibitions.
(1)
A credit services organization,
its
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
13-21-4
, posting a bond, letter of credit, or
certificate of deposit with the division in the amount of $100,000
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)
make a false statement, or fail to state a material fact, in connection with an
application for registration with the division;
(c)
(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;
(d)
(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;
(e)
(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;
(f)
(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;
(g)
(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;
and
(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.
(h)
transact any business as a credit services organization, as defined in Section
13-21-2
,
without first having registered with the division by paying an annual fee set pursuant
to Section
63J-1-504
and filing proof that it has obtained a bond or letter of credit as
required by Subsection
(2)
.
(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.
(2)
(a)
A bond, letter of credit from a Utah depository, or certificate of deposit posted
with the division shall be used to cover the losses of any person arising from a
violation of this chapter by the posting credit services organization. A bond, letter of
credit, or certificate of deposit may also be used to satisfy administrative fines and
civil damages arising from any enforcement action against the posting credit service
organization.
(b)
A bond, letter of credit, or certificate of deposit shall remain in force:
(i)
until replaced by a bond, letter of credit, or certificate of deposit of identical or
superior coverage; or
(ii)
for one year after the credit servicing organization notifies the division in writing
that it has ceased all activities regulated by this chapter.
Section 24. Section
13-21-103
, which is renumbered from Section 13-21-3.5 is renumbered
and amended to read:
13-21-3.5
13-21-103
Effective
05/06/26
. 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
shall include
described in Subsection
(1)
:
(a)
the name,
complete
mailing and physical
address, and telephone number of the
credit services
organization;
(b)
the name of
any
a
person
who
that
owns or controls more than 5% of the
credit
services
organization, either directly or through another person or entity;
(c)
the name of any individual who is responsible for the day-to-day operation of the
credit services
organization;
(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;
(d)
(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
(1)(b)
(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
Section
13-21-2(3)(a)
13-21-101(5)(a)
; or
(ii)
a notarized statement of the
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
(1)(b)
(2)(b)
or
(c)
is a party
to any administrative, civil, or criminal action described in Subsection
(1)(d)(i)
(2)(e)(i)
;
(e)
(f)
a detailed outline of the
credit services
organization's credit services program
to
be offered in
that the credit services organization will offer in
this state
, including
two copies of any contract, form, sales literature, or other relevant document that will
be used by the organization; and
;
(g)
a copy of any contract and other document that the credit services organization
requires the consumer to sign;
(f)
(h)
a
reasonable
registration fee
to be
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;
(C)
is enjoined by a court;
(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.
(2)
The division may deny, suspend, or revoke a registration under this chapter if:
(a)
a credit services organization has engaged, or is engaging in a violation of this
chapter; or
(b)
a person described in Subsection
(1)(b)
or
(c)
has been found in an administrative,
civil, or criminal action in any jurisdiction to have violated a law relating to the offer
to provide or provision of the types of services described in Subsection
13-21-2(3)(a)
.
Section 25. Section
13-21-104
, which is renumbered from Section 13-21-4 is renumbered
and amended to read:
13-21-4
13-21-104
Effective
05/06/26
. Surety bond or certificate of deposit --
Not required of agent if obtained by organization.
(1)
If a credit services organization
has obtained
obtains
a
surety
bond
, letter of credit,
or
certificate of deposit as
set forth
described
in Subsection
13-21-3(1)
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
, letter of credit,
or certificate of deposit.
(2)
As used in
For purposes of
this section, a person is
not
a salesperson, agent, or
representative of a credit services organization
unless
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
letter of credit
certificate of deposit
certify in writing that the
surety
bond or
letter of credit
certificate of deposit
covers the person.
Section 26. Section
13-21-105
, which is renumbered from Section 13-21-5 is renumbered
and amended to read:
13-21-5
13-21-105
Effective
05/06/26
. 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
13-21-6
13-21-106
.
(2)
The
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.
Section 27. Section
13-21-106
, which is renumbered from Section 13-21-6 is renumbered
and amended to read:
13-21-6
13-21-106
Effective
05/06/26
. Contents of statement.
The information statement required under Section
13-21-5
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
maintained by any
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
will be conducted
free
of charge
by the credit reporting agency that issued a report upon which a credit denial
was based
, if requested within 30 days
of the buyer receiving
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
will be charged
by a credit reporting agency
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
maintained by any credit
reporting agency
that a credit reporting agency maintains
;
(5)
a complete and detailed description of the services
to be performed by
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
13-21-3
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.
Section 28. Section
13-21-107
, which is renumbered from Section 13-21-7 is renumbered
and amended to read:
13-21-7
13-21-107
Effective
05/06/26
. Written contracts required -- Contents
-- Notice of cancellation of contract.
(1)
Each
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
to be performed by
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
are to be performed
, 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
seller
credit services organization
)_____at
_____(address of
seller
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
they are signed
the buyer signs the documents
.
Section 29. Section
13-21-108
, which is renumbered from Section 13-21-7.5 is renumbered
and amended to read:
13-21-7.5
13-21-108
Effective
05/06/26
. Required disclosures.
(1)
As used in this section:
(a)
"Consumer reporting agency" means the same as that term is defined in Section
13-45-102
.
(b)
"Credit report" means the same as that term is defined in Section
13-45-102
.
(c)
"Credit score" means the same as that term is defined in Section
31A-22-320
.
(2)
When a
consumer
credit services organization provides a credit report to a buyer, the
credit services organization shall provide to the buyer a written disclosure that identifies:
(a)
(1)
the
consumer
credit
reporting agency providing the information in the report;
(b)
(2)
the name of the credit score model
used by
the credit reporting agency
uses
to
calculate the credit score; and
(c)
(3)
the minimum and maximum possible scores under the credit score model
used by
the credit reporting agency
uses
in the credit report.
Section 30. Section
13-21-109
, which is renumbered from Section 13-21-8 is renumbered
and amended to read:
13-21-8
13-21-109
Effective
05/06/26
. Burden of proving exception --
Penalties -- Court's criminal and equitable jurisdiction -- Prosecution.
(1)
(a)
Any
A
waiver by a buyer of
any
a
part of this chapter is void.
(b)
Any attempt by a credit services organization to have a buyer waive rights given by
this chapter is a violation of this chapter.
(2)
In
any
a
proceeding
involving
under
this chapter,
the person claiming the exemption
or exception has
the burden of proving an exemption or an exception from a definition
is upon the person claiming the exemption or exception
.
(3)
(a)
Any
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,
any
a
county attorney,
any
a
district attorney, or
any
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)
(a)
In addition to
other penalties under this section, 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.
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.
(b)
All money received through administrative fines imposed under this section shall be
deposited into the Consumer Protection Education and Training Fund created by
Section
13-2-8
.
(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;
(c)
order disgorgement of any money received in 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.
Section 31. Section
13-21-110
, which is renumbered from Section 13-21-9 is renumbered
and amended to read:
13-21-9
13-21-110
Effective
05/06/26
. Damages -- Punitive damages --
Attorney fees and costs -- Remedies.
(1)
Any
A
buyer injured by a violation of this chapter may bring any action for recovery of
damages.
(2)
Judgment shall be entered
In an action brought by a buyer in accordance with
Subsection
(1)
:
(a)
a court shall enter judgment
for actual damages,
but in no case less than
that the
court shall determine as at least
the amount paid by the buyer to the credit services
organization, plus reasonable
attorneys'
attorney
fees and costs
.
; and
(b)
An award may also be entered for
the court may award the buyer
punitive damages.
(2)
(3)
The remedies provided under this chapter are in addition to any other procedures or
remedies for
any
a
violation or conduct provided for in any other law.
(3)
(4)
(a)
The
Division of Consumer Protection
division
may maintain an action for
damages or injunctive relief on behalf of
itself
the division
or
any other
another
person to enforce compliance with this chapter.
(b)
Any
A court shall include in a
judgment
granted
the court grants
in favor of the
division
shall include
, in addition to any other monetary award or injunctive relief,
an award of reasonable
attorneys'
attorney
fees, court costs, and costs of
investigation.
Section 32. Section
13-22-101
, which is renumbered from Section 13-22-2 is renumbered
and amended to read:
1. General Provisions
13-22-2
13-22-101
Effective
05/06/26
. 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"
or "organization"
means any person, joint venture,
partnership, limited liability company, corporation, association, group, or other entity
that
:
(i)
who
is or
holds itself out
claims
to be
:
(A)
a benevolent, educational, voluntary health, philanthropic, humane, patriotic,
religious or eleemosynary, social welfare or advocacy, public health,
environmental or conservation, or civic organization;
(B)
for the benefit of a public safety, law enforcement, or firefighter fraternal
association; or
(C)
established for any charitable purpose;
(ii)
who
solicits or obtains contributions solicited from the public for a charitable
purpose; or
(iii)
in any manner
employs a charitable appeal as the basis of
any
a
charitable
solicitation or employs an appeal that reasonably suggests or implies that there is a
charitable purpose to
any
a
charitable
solicitation.
(b)
"Charitable organization" includes a chapter or a person who solicits contributions
within the state for a charitable organization.
(c)
"Charitable organization" does not include a political 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,
which
that
represents that the purchase or use of goods or
services
offered by
that
the commercial co-venturer
offers
will benefit, in whole or in
part, a charitable organization or purpose.
(5)
(a)
"Charitable solicitation" or "solicitation"
"Charitable solicitation"
means
any
a
person's
request, directly or indirectly, for money, credit, property, financial
assistance, or
any other
another
thing of value
based
on the plea or representation
that
it will be used
the person will use the money, credit, property, financial
assistance, or any other thing of value
for a charitable purpose.
(b)
"Charitable solicitation" or "solicitation"
"Charitable solicitation"
includes:
(i)
any of the following done, or purporting to be done, for a charitable purpose:
(A)
any
an
oral or
a
written request, including
any
a
request by telephone,
radio, television, or other advertising or communications media;
(B)
the distribution, circulation, or posting of
any
a
handbill, written
advertisement, or publication; or
(C)
an application or other request for a
a
private grant or, if made by an
individual, a public grant;
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
any
a person makes an
appeal
is made for any
for a
charitable purpose
;
(iii)
, or the
a person's
use of the name of
any
a
charitable organization or
movement as an inducement or reason for making
any
a
purchase
or
donation
,
;
or
,
(iv)
in connection with
any
a
sale or donation,
a person
stating or implying that the
whole
person will give or donate all
or
any
a
part of the proceeds of
any
a
sale
or donation
will go to or be donated
to
any
a
charitable purpose.
(c)
"Charitable solicitation" or "solicitation"
"Charitable solicitation"
does not include
an entity's application or other request for a public grant.
(6)
"Commercial co-venturer" means a person
who
that
for profit
is
regularly and
primarily
engaged
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
loaned
a financial institution loans
to a charitable organization
by a
financial institution
in the ordinary course of business; or
(ii)
fees, dues, or assessments
paid by members
members pay
when membership is
not conferred solely as consideration for making a contribution.
(8)
"Contributor" means a donor, pledgor, purchaser, or other person
who
that
makes a
contribution.
(9)
"Director" means the director of the
Division of Consumer Protection
division
.
(10)
"Division" means the Division of Consumer Protection
of the Department of
Commerce
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
a person
an individual
of ordinary intelligence
and prudence would consider relevant in deciding whether
or not
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
fund raiser
fundraiser
" means a person
who
that
:
(i)
for compensation or
any
other consideration, for or on behalf of a charitable
organization that is a nonprofit corporation, or
any
other person that is not a
political organization:
(A)
solicits
contributions
a contribution
; or
(B)
promotes or sponsors the
charitable
solicitation of
contributions
a contribution
;
(ii)
(A)
for compensation or
any
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; 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
any
a
charitable organization or charitable purposes.
(b)
"Professional
fund raiser
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
person's
individual's
profession, advises a client regarding legal, investment, or financial
advice;
(iii)
a person
an individual
who tangentially prepares materials, including
a person
an individual
who:
(A)
makes copies;
(B)
cuts or folds flyers; or
(C)
creates a graphic design or other artwork without providing strategic or
campaign-related input; or
(iv)
a political organization.
(17)
(a)
"Professional
fund raising
fundraising
consultant" means
a person
an individual
who:
(i)
for compensation or
any
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
fund raising
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)
a person
an individual
who tangentially prepares materials, including
a person
an individual
who:
(A)
makes copies;
(B)
cuts or folds flyers; or
(C)
creates a graphic design or other artwork without providing strategic or
campaign-related input.
(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
fund raiser
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
any
a
decal, tag, or similar designation material that is
attached to a vending device,
whether or not used or placed by a charitable organization
or professional fund raiser
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.
Section 33. Section
13-22-102
, which is renumbered from Section 13-22-3 is renumbered
and amended to read:
13-22-3
13-22-102
Effective
05/06/26
. 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)
Upon request, the attorney general shall give legal advice to, and act as counsel for, the
division in the exercise of the division's responsibilities under this chapter.
(3)
(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
the
an
investigation
the division conducts in accordance with this
Subsection
(2)
, the division may:
(a)
(i)
require a person to file a statement in writing;
(b)
(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
(c)
(iii)
require the production of books, papers, documents, merchandise, or other
material relevant to the investigation.
(4)
(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
acts
act
or
practices
practice
constituting the violation or to enforce compliance with this
chapter or a rule made or order issued under this chapter.
(5)
(4)
Upon a proper showing, the court hearing an action brought under Subsection
(4)(b)
(3)(b)
may:
(a)
issue an injunction;
(b)
enter a declaratory judgment
declare that an act or practice violates a provision of
this chapter
;
(c)
appoint a receiver for the defendant or the defendant's assets;
(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;
(e)
(f)
order rescission of
agreements violating
an agreement that violates
this chapter;
(f)
(g)
impose
fines
a fine of up to $2,500
for each violation of this chapter; and
(g)
(h)
impose a civil penalty or
award
any other relief the court determines
reasonable and necessary.
(6)
(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
(c)
investigative fees.
(7)
(6)
In assessing the amount of a fine or penalty under Subsection
(4)(a)
, (5)(f), or
(5)(g),
(3)(a), or (4)(g)
the director or court imposing the fine or penalty may consider
the gravity of the violation.
(8)
(7)
(a)
A person
who
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 attorney general on behalf of
the division.
(9)
(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)
The scope of the education may
include:
(a)
(A)
the requirements, prohibitions, and regulated practices under this chapter;
(b)
(B)
suggestions for effective financial and organizational practices for
charitable organizations;
(c)
(C)
charitable giving and
charitable
solicitation;
(d)
(D)
potential problems with
charitable
solicitations and fraudulent or
deceptive practices; and
(e)
(E)
any other matter relevant to the subject of this chapter.
(10)
(9)
Nothing in this chapter limits other available rights or remedies authorized under
the laws of this state or the United States.
Section 34. Section
13-22-103
, which is renumbered from Section 13-22-4 is renumbered
and amended to read:
13-22-4
13-22-103
Effective
05/06/26
. Action for damages.
Nothing in this chapter precludes
any
a
person damaged as a result of a charitable
solicitation from maintaining a civil action for damages or injunctive relief.
Section 35. Section
13-22-104
, which is renumbered from Section 13-22-5 is renumbered
and amended to read:
13-22-5
13-22-104
Effective
05/06/26
. Registration required.
(1)
Unless a person acting as a professional
fund raiser is registered
fundraiser registers
with the division in accordance with Section
13-22-9
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
fund raising
fundraising
consultant
is
registered
registers
with the division in accordance with Section
13-22-9
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
fund raising
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.
Section 36. Section
13-22-105
, which is renumbered from Section 13-22-9 is renumbered
and amended to read:
13-22-9
13-22-105
Effective
05/06/26
. Professional fundraiser's or fundraising
consultant's registration.
(1)
A person applying for or renewing a registration as a professional
fund raiser
fundraiser
or a professional
fund raising
fundraising
consultant shall:
(a)
pay an application fee
as determined
the division determines
under Section
63J-1-504
; and
(b)
submit a written application
, verified under oath,
on
in
a form
approved by
the
division
approves
that includes:
(i)
the applicant's name, address,
and
telephone number
, facsimile number, if any
;
(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
it
the applicant
is an individual, joint venture, partnership, limited
liability company, corporation, association, or other entity;
(v)
the names and
residence
mailing
addresses of the applicant's officers and
directors;
(vi)
the
name and address of the
applicant's registered agent for service of process
and a consent to service of process
in this state, and the registered agent's:
(A)
name;
(B)
street address;
(C)
mailing address; and
(D)
telephone number
;
(vii)
if
the person is
a professional
fund raiser
fundraiser or applies for registration
as a professional fundraiser
:
(A)
the purpose of the
charitable
solicitation and use of the contributions
to be
solicited
the person will solicit
;
(B)
the method by which the
person will conduct the charitable
solicitation
will
be conducted
and the projected length of time
it is to be conducted
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;
(C)
the anticipated expenses of the solicitation, including all commissions, costs
of collection, salaries, and other expenses;
(D)
a statement of what percentage of the contributions
collected
the person
collects
as a result of the
charitable
solicitation are projected to remain
available to the charitable organization declared in the application
, including a
satisfactory statement of the factual basis for the projected percentage and
projected anticipated revenues provided to the charitable organization, and if a
flat fee is charged, documentation to support the reasonableness of the flat fee
;
and
(E)
a statement of total contributions collected or received by the
professional
fund raiser
person
within the calendar year immediately preceding the
date of
the application
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
fund raising
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
will be organized or coordinated
and the projected
length of time of the
charitable
solicitation;
(C)
the anticipated expenses of the plan, management, advice, or preparation of
materials for, or with respect to, the solicitation, including all commissions,
costs of collection, salaries, and other expenses;
(D)
(C)
a statement of
total fees to be earned or received from the charitable
organization declared in the application, and what
the
percentage of the
contributions
collected
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
to be earned
or received
the person will earn or receive
remain available to the charitable
organization declared in the application
, including a satisfactory statement of
the factual basis for the projected percentage and projected anticipated
revenues provided to the charitable organization, and if a flat fee is charged,
documentation to support the reasonableness of such flat fee
; and
(E)
(D)
a statement of total net fees
earned or received
the person earns or
receives
within the calendar year immediately preceding the
date of the
application
day on which the person submits the applicant's application
,
including a description of the expenditures
made
the person makes
from or
the use
uses
of the net
earned or received
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)
or the applicant's conviction of a crime involving a charitable solicitation or
a felony involving fraud, dishonesty, a false statement, forgery, or theft
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
any
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
any
an
officer,
a
director,
a
manager,
an
operator, or
a
principal of the applicant;
(xii)
a copy of all agreements to which the applicant is, or proposes to be, a party
regarding the use of proceeds;
(xiii)
(xii)
an acknowledgment that
fund raising
fundraising
in the state will not
commence until both the professional
fund raiser
fundraiser
or professional
fund
raising
fundraising
consultant
and the charity, and its parent foundation, if any,
are
are
registered and in compliance with this chapter; and
(xiv)
(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.
Section 37. Section
13-22-106
, which is renumbered from Section 13-22-11 is renumbered
and amended to read:
13-22-11
13-22-106
Effective
05/06/26
. Expiration of registration.
(1)
Each
A
professional
fund raiser's
fundraiser's or professional fundraising consultant's
registration issued under this chapter expires
annually on the date of issuance
one year
after the day on which the division issues the registration
.
(2)
Each professional fund raising consultant's registration issued under this chapter
expires annually on the date of issuance.
(3)
(2)
A
professional fundraiser or a professional fundraising consultant:
(a)
may renew a
registration
may be renewed
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.
Section 38. Section
13-22-107
, which is renumbered from Section 13-22-12 is renumbered
and amended to read:
13-22-12
13-22-107
Effective
05/06/26
. Grounds for denial, suspension, or
revocation.
The director may, in
In
accordance with
Chapter 2, Division of Consumer Protection,
and
Title 63G, Chapter 4, Administrative Procedures Act,
issue an order
the division may
initiate adjudicative proceedings
to deny, suspend, or revoke an application
or registration
,
upon a finding that the order is in the public interest and that
if
:
(1)
the division finds that the denial, suspension, or revocation is in the public interest; and
(1)
(2)
(a)
the application
for
or
registration
or renewal
is incomplete or misleading in
any
a
material respect;
(2)
(b)
the applicant or
registrant or an officer, director, agent, or employee of the
applicant or registrant has
the applicant's principal
:
(a)
(i)
violated
violates
this chapter
or committed a prohibited act or practice
described in 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;
(b)
been enjoined by a court, or is the subject of an administrative order issued in this or
another state, if the injunction or order includes a finding or admission of fraud,
breach of fiduciary duty, material misrepresentation, or if the injunction or order was
based on a finding of lack of integrity, truthfulness, or mental competence of the
applicant;
(c)
(iv)
been
is
convicted of a crime involving fraud, dishonesty, a false statement,
forgery, or theft;
(d)
(v)
obtained
obtains
or
attempted
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.
(e)
materially misrepresented or caused to be misrepresented the purpose and manner in
which contributed funds and property will be used in connection with a solicitation;
(f)
caused or allowed a paid solicitor to violate a rule made or order issued under this
chapter by the division;
(g)
failed to take corrective action with a solicitor that has violated this chapter or
committed an act or practice prohibited by this chapter;
(h)
used, or attempted to use a name that is deceptive or is reasonably likely to cause
confusion;
(i)
failed to timely file with the division a report or information required in this chapter
or by rules made under this chapter; or
(j)
failed to pay a fine imposed by the division in accordance with Section
13-22-3
.
Section 39. Section
13-22-108
, which is renumbered from Section 13-22-13 is renumbered
and amended to read:
13-22-13
13-22-108
Effective
05/06/26
. 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
13-22-3
13-22-102
.
Section 40. Section
13-22-109
, which is renumbered from Section 13-22-14 is renumbered
and amended to read:
13-22-14
13-22-109
Effective
05/06/26
. 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
it
the state
warrant that
any
a
statement made by the holder of the registration is truthful.
(b)
The state makes no certification as to the charitable worthiness of
any organization
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."
Section 41. Section
13-22-110
, which is renumbered from Section 13-22-15 is renumbered
and amended to read:
13-22-15
13-22-110
Effective
05/06/26
. Financial reports required --
Rulemaking.
(1)
(a)
Beginning January 1, 2025, and subject
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
recent
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)
.
(b)
(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
is required to
shall
file the forms
described in Subsection
(1)
; and
(ii)
the process by which a charitable organization
is required to
shall
file the forms
described in Subsection
(1)
.
Section 42. Section
13-22-111
, which is renumbered from Section 13-22-16 is renumbered
and amended to read:
13-22-16
13-22-111
Effective
05/06/26
. Separate accounts and receipts
required.
(1)
(a)
Each
A
professional
fund raiser
fundraiser
shall segregate and maintain all
contributed funds in an account held separately from the professional
fund raiser's
fundraiser's
operating account.
(b)
Each
A professional fundraiser shall deposit each
contribution in the control or
custody of the professional
fund raiser shall, no later than 10 days after the day on
which the contribution is received, be deposited
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
.
(c)
The charitable organization shall
:
(i)
maintain and administer the account
described in Subsection
(1)(b)
;
and
shall
(ii)
have sole control of all withdrawals.
(2)
Each
A
professional
fund raiser
fundraiser
shall:
(a)
maintain a record of each contribution of money, securities, or cash equivalent
sufficient to allow the
charitable
organization or professional
fund raiser
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
fund raiser
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
fund raiser's
fundraiser's
assets and
organizational complexity.
Section 43. Section
13-22-112
, which is renumbered from Section 13-22-17 is renumbered
and amended to read:
13-22-17
13-22-112
Effective
05/06/26
. Written agreement required.
(1)
A professional
fund raiser
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 professional fund raising consultant may only engage in activities on behalf of a
charitable organization through written agreement with the organization.
(3)
(2)
A charitable organization may only engage the services of a professional
fund
raiser
fundraiser
or professional
fund raising
fundraising
consultant through written
agreement.
(4)
(3)
A professional
fund raiser
fundraiser
or professional
fund raising
fundraising
consultant shall file each agreement described in this section with
its
the professional
fundraiser's or professional fundraising consultant's
application for registration.
Section 44. Section
13-22-113
, which is renumbered from Section 13-22-19 is renumbered
and amended to read:
13-22-19
13-22-113
Effective
05/06/26
. Reciprocal agreements.
(1)
The division may convey or exchange information obtained under this chapter with
other agencies having
another agency that has
regulatory authority over charitable
organizations.
(2)
The division may accept information that a charitable organization
,
or
professional
fund raiser
fundraiser, or fundraising consultant
files in another state or with
any
a
federal agency or other organization in place of substantially similar information that is
required to be filed under this chapter.
Section 45. Section
13-22-114
, which is renumbered from Section 13-22-22 is renumbered
and amended to read:
13-22-22
13-22-114
Effective
05/06/26
. 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.
Section 46. Section
13-22-115
, which is renumbered from Section 13-22-23 is renumbered
and amended to read:
13-22-23
13-22-115
Effective
05/06/26
. Fiduciary capacity.
Every
A
person soliciting, collecting, or expending
contributions
a contribution
for
charitable purposes, and every officer, director, trustee, or employee of
any
a
person
concerned with the
charitable
solicitation, collection, or expenditure of
those contributions
the
contribution for charitable purposes
,
shall be considered to be
is
a fiduciary and
acting
acts
in a fiduciary capacity.
Section 47. Section
13-22-116
, which is renumbered from Section 13-22-24 is renumbered
and amended to read:
13-22-24
13-22-116
Effective
05/06/26
. Fundraising campaign recordkeeping
requirements.
(1)
As used in this section,
"fund raising
"fundraising
campaign" means
a
charitable
solicitation activity that a professional
fund raiser
fundraiser
engages in on behalf of a
charitable organization where the professional
fund raiser
fundraiser
receives a portion
of the funds raised or other compensation in exchange for services.
(2)
Before commencing a fund raising campaign, a
A
professional
fund raiser shall
submit to the division
fundraiser shall keep records of the following information
:
(a)
projected
actual
expenses and revenue for the
fundraising
campaign;
(b)
bank account information for the bank account where the professional
fund raiser
will hold
fundraiser holds
contributions collected in connection with the
fund raising
fundraising
campaign;
(c)
the
charitable
solicitation scripts that will be used for the
fund raising
fundraising
campaign;
(d)
an affirmation from the professional
fund raiser
fundraiser
that the charity
has
approved
approves
the
charitable
solicitation materials to be used in the fund raising
campaign;
and
(e)
names
the name
and contact information for
the individuals
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)
No later than 90 days after the day on which the fund raising campaign ends, the
professional fund raiser shall submit a report to the division detailing:
(a)
all contributions collected during the fund raising campaign;
(b)
all contributions paid to the charitable organization as a result of the fund raising
campaign; and
(c)
expenses paid by the charitable organization to the professional fund raiser for the
fund raising campaign.
(4)
(3)
A professional
fund raiser
fundraiser
shall keep
the
records
related to the
information
described in Subsection
(2)
for five years after the day on which the
fund
raising
fundraising
campaign ends.
Section 48. Section
13-23-101
, which is renumbered from Section 13-23-2 is renumbered
and amended to read:
23. Fitness Center Services Protection Act
1. General Provisions
13-23-2
13-23-101
Effective
05/06/26
. 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
health spa
fitness center
services for consideration.
(3)
"Division" means the Division of Consumer Protection
established under Section
13-2-102
.
(4)
(a)
"Health spa
"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)
"Health spa
"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
health spa
fitness center
.
(5)
"Health spa
"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
, weight control,
or athletics.
(6)
(a)
"Health spa
"Fitness center
service" means instruction, a service, a privilege, or
a right that a
health spa
fitness center
offers for sale.
(b)
"Health spa
"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
, weight
control,
or athletics.
(8)
"Primary location" means the
health spa
fitness center
facility that a
health spa
fitness
center
designates in a contract for
health spa
fitness center
services as the
health spa
fitness center
facility the consumer in the contract will primarily use for
health spa
fitness center
services.
Section 49. Section
13-23-102
, which is renumbered from Section 13-23-3 is renumbered
and amended to read:
13-23-3
13-23-102
Effective
05/06/26
. Contracts for fitness center services.
(1)
(a)
A contract for the purchase of a
health spa
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
health spa
fitness center
.
(2)
(a)
The
health spa
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
health spa
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.
(c)
Except for a lifetime membership sold before May 1, 1995, a
health spa
fitness
center
may not offer a lifetime membership.
(4)
A contract described in Subsection
(1)
or an attachment to the contract shall clearly state
each rule of the
health spa
fitness center
that applies to:
(a)
the consumer's use of the
health spa's
fitness center's
facilities and services; and
(b)
cancellation and refund policies of the
health spa
fitness center
.
(5)
A contract described in Subsection
(1)
shall specify which equipment or facility of the
health spa
fitness center
:
(a)
is omitted from the contract's coverage; or
(b)
may be changed at the
health spa's
fitness center's
discretion.
(6)
A contract described in Subsection
(1)
shall clearly:
(a)
state the consumer's rescission rights under Section
13-23-4
13-23-103
; and
(b)
provide an email address and a mailing address where the consumer can send the
health spa
fitness center
a notice of intent to rescind the contract.
(7)
(a)
If a consumer and a
health spa
fitness center
enter into a contract described in
Subsection
(1)
before May 4, 2022, the
health spa
fitness center
may:
(i)
assign the contract to another
health spa
fitness center
that requires the consumer
to obtain a contracted
health spa
fitness center
service at a
health spa
fitness
center
facility within five driving miles from the consumer's initial primary
location; or
(ii)
change the consumer's primary location to a
health spa
fitness center
facility
within five driving miles from the consumer's initial primary location.
(b)
If a consumer and a
health spa
fitness center
enter into a contract described in
Subsection
(1)
on or after May 4, 2022, the
health spa
fitness center
may not:
(i)
assign the contract to another
health spa
fitness center
that requires the consumer
to obtain a contracted
health spa
fitness center
service at a
health spa
fitness
center
facility within five driving miles from the consumer's initial primary
location, unless the
health spa
fitness center
that enters into the contract includes
in the contract a disclaimer that:
(A)
is in at least 12-point, bold
type
font
on the first page of the contract; and
(B)
states that the
health spa
fitness center
may assign the contract to another
health spa
fitness center
requiring the consumer to obtain a contracted
health
spa
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
health spa
fitness center
facility
within five driving miles from the consumer's initial primary location, unless the
health spa
fitness center
includes in the contract a disclaimer that:
(A)
is in at least 12-point, bold
type
font
on the first page of the contract; and
(B)
states that the
health spa
fitness center
may change the consumer's primary
location to a
health spa
fitness center
facility within five driving miles from
the consumer's initial primary location.
(8)
(a)
Except as permitted under Subsection
(8)(b)
, a
health spa
fitness center
may not
assign a contract for a
health spa
fitness center
service to a
health spa
fitness center
that requires the consumer to obtain a contracted
health spa
fitness center
service at
a
health spa
fitness center
facility farther than five driving miles from the
consumer's initial primary location, unless the
health spa
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
health spa
fitness center
may assign a consumer's contract for a
health spa
fitness center
service without complying with Subsection
(8)(a)
, if:
(i)
during the 60-day period immediately before the day on which the
health spa
fitness center
assigns the consumer's contract, the consumer uses a
health spa
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
health spa
fitness
center
facility described in Subsection
(8)(b)(i)
; and
(iii)
the
health spa
fitness center
has a reciprocity agreement with the assignee.
(9)
(a)
Except as permitted under Subsection
(9)(b)
, before a
health spa
fitness center
changes a consumer's primary location to a
health spa
fitness center
facility farther
than five driving miles from the consumer's initial primary location, the
health spa
fitness center
shall provide the consumer the option to:
(i)
cancel the contract for a
health spa
fitness center
service; or
(ii)
(A)
continue the contract at the new
health spa
fitness center
facility; and
(B)
designate the new
health spa
fitness center
facility as the consumer's primary
location.
(b)
A
health spa
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
health spa
fitness center
changes the consumer's primary location, the consumer uses a
health spa
fitness center
facility other than the consumer's primary location more
frequently than the consumer's primary location; and
(ii)
the
health spa
fitness center
changes the consumer's primary location to the
health spa
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.
Section 50. Section
13-23-103
, which is renumbered from Section 13-23-4 is renumbered
and amended to read:
13-23-4
13-23-103
Effective
05/06/26
. Rescission.
(1)
A consumer may rescind a contract for the purchase of a
health spa
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
health spa provided
fitness center
provides
in the contract,
as described in
in accordance with
Subsection
13-23-3(6)(b)
13-23-102(6)(b)
; and
(b)
(i)
before midnight of the third business day after the day on which the consumer
and
health spa
fitness center
execute the contract, as recorded by timestamp or
postmark; or
(ii)
if a consumer and
health spa
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)
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
health spa
fitness center
service the consumer actually received.
(b)
(3)
The preparation and processing of the contract or
another
other
document is not a
health spa
fitness center
service
that is deductible
that the fitness center may deduct
under Subsection
(2)(a)
(2)
from any refundable amount.
(c)
(4)
In an enforcement action that the division initiates, a
health spa
fitness center
has
the burden of proving that any value the
health spa
fitness center
retains under
Subsection
(2)(a)
(2)
is reasonable.
(3)
(5)
The rescission of a contract under this section is effective upon the
health spa's
fitness center's
receipt of written notice of the consumer's intent to rescind the contract.
Section 51. Section
13-23-104
, which is renumbered from Section 13-23-5 is renumbered
and amended to read:
13-23-5
13-23-104
Effective
05/06/26
. Registration -- Bond or certificate of
deposit required -- Penalties.
(1)
(a)
(i)
A
health spa
fitness center
may not operate a
health spa
fitness center
facility in this state unless the
health spa
fitness center
registers the
health spa
fitness center
facility with the division in accordance with this section.
(ii)
Registration of a health spa facility under this chapter is effective for one year.
(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;
(C)
mailing address; and
(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.
(iii)
(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
health spa
fitness center
facility registration under this section, the
health spa
fitness center
shall submit a registration renewal application
to the
division
in accordance with Subsection
(2)
at least 30 days before the day on which
the
health spa
fitness center
facility's registration expires.
(iv)
(4)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
,
the division may establish:
(A)
(a)
the initial
health spa
fitness center
facility registration process, including the
content of any forms;
(B)
(b)
the
health spa
fitness center
facility registration renewal process, including the
content of any forms; and
(C)
(c)
a surety exemption process, including the content of any forms.
(b)
Each health spa registering a health spa facility in this state shall designate a
registered agent for receiving service of process.
(c)
A health spa's registered agent shall be reasonably available from 8 a.m. until 5 p.m.
during normal working days.
(d)
The division shall charge and collect a fee for registration and registration renewal
under guidelines provided in Section
63J-1-504
.
(e)
If a health spa fails to submit a complete registration renewal application before the
day on which a health spa facility's registration expires, the health spa shall pay a fee
of $25 for each month or part of a month that passes:
(i)
after the day on which the registration expires; and
(ii)
before the day on which the health spa submits a complete registration renewal
application.
(f)
The fee described in Subsection
(1)(e)
is in addition to the registration renewal fee
described in Subsection
(1)(d)
.
(g)
A health spa registering or renewing a registration shall provide the division a copy
of the liability insurance policy that:
(i)
covers the health spa; and
(ii)
is in effect at the time of the registration or registration renewal.
(h)
If information in an application to register or renew the registration of a health spa
facility materially changes or becomes incorrect or incomplete, the applicant shall,
within 30 days after the day on which the information changes or becomes incorrect
or incomplete, correct the application or submit the correct information to the
division in a manner that the division establishes by rule made in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
.
(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)
.
(2)
(7)
(a)
Except as provided in Section
13-23-6
13-23-105
, for each
health spa
fitness center
facility a
health spa
fitness center
operates, the
health spa
fitness
center
shall obtain and maintain:
(i)
a
performance
surety
bond issued by a surety authorized to transact surety
business in this state;
or
(ii)
an irrevocable letter of credit issued by a financial institution authorized to do
business in this state; or
(iii)
(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
, letter of credit,
or certificate of deposit
described in Subsection
(2)(a)
shall be
(7)(a)
payable to the division for the benefit
of a consumer who incurs damages as the result of the
health spa
fitness center
:
(i)
violating this chapter; or
(ii)
going out of business.
(c)
(i)
After each consumer
has fully recovered
recovers actual
damages, the
division may recover from the
surety
bond
, letter of credit,
or certificate of
deposit described in Subsection
(2)(a)
the costs of collecting and distributing
funds under this section, in an amount up to 10% of the face value of the bond,
letter of credit, or certificate of deposit
(7)(a) any administrative fine, civil
penalty, investigative cost, attorney fees, or other cost of collecting and
distributing funds in accordance with this chapter
.
(ii)
The total liability of the issuer of the bond, letter of credit, or certificate of
deposit described in this Subsection
(2)
may not exceed the amount of the bond,
letter of credit, or certificate of deposit.
(iii)
A health spa shall maintain a bond, letter of credit, or certificate of deposit
described in this Subsection
(2)
in force for one year after the day on which the
health spa notifies the division in writing that the health spa has ceased all
activities regulated under this chapter at the health spa facility.
(d)
(i)
The division may impose a fine against a health spa that fails to comply with
the requirements of this Subsection
(2)
of up to $100 per day that the health spa
remains out of compliance.
(ii)
The division shall deposit each fine the division collects under this Subsection
(2)(d)
into the Consumer Protection Education and Training Fund created in
Section
13-2-8
.
(3)
(8)
(a)
In accordance with the schedule established in Subsection
(3)(b)
(8)(b)
, a
health spa
fitness center
shall base the minimum principal amount of the bond
, letter
of credit,
or certificate of deposit required under Subsection
(2)
(7)
on:
(i)
the number of unexpired contracts for a
health spa
fitness center
service, at the
time the
health spa
fitness center
submits the
health spa
fitness center
facility
registration or registration renewal application, that designate the
health spa
fitness center
facility as the consumer's primary location; or
(ii)
if at the time the
health spa
fitness center
submits the
health spa
fitness center
facility registration application the
health spa
fitness center
has not executed a
contract for a
health spa
fitness center
service that designates the
health spa
fitness center
facility as a consumer's primary location, the number of contracts
for a
health spa
fitness center
service designating the
health spa
fitness center
facility as a consumer's primary location that the
health spa
fitness center
reasonably expects to execute during the
health spa
fitness center
facility's first
year of registration.
(b)
Principal Amount of
Surety
Bond
, Letter of Credit,
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
health spa
fitness center
shall comply with Subsections
(3)(a)
(8)(a)
and
(b)
with
respect to all of the
health spa's
fitness center's
unexpired contracts for a
health spa
fitness center
service that do not satisfy the criteria in Section
13-23-6
13-23-105
.
(4)
(9)
A
health spa
fitness center
shall furnish a copy of the current
surety
bond
, letter
of credit,
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
health spa
fitness center
service.
(5)
(10)
A
health spa
fitness center
shall:
(a)
maintain accurate records of:
(i)
the
surety
bond
, letter of credit,
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
(5)(a)
(10)(a)
to inspection by the division
at any time during normal business hours.
(6)
(11)
(a)
A
health spa
fitness center
with a
health spa
fitness center
facility
registered under this section shall submit a new initial registration for the
health spa
fitness center
facility, if the
health spa
fitness center
:
(i)
changes ownership;
(ii)
permanently ceases and then again commences operation at the
health spa
fitness
center
facility; or
(iii)
relocates the
health spa
fitness center
facility.
(b)
The former owner of a
health spa
fitness center
may not release, cancel, or
terminate the owner's liability under any
surety
bond
, letter of credit,
or certificate
of deposit previously filed with the division, unless:
(i)
the new owner
has filed
files
a new bond
, letter of credit,
or certificate of
deposit for the benefit of consumers covered under the previous owner's
surety
bond
, letter of credit,
or certificate of deposit; or
(ii)
the former owner
has refunded
refunds
all unearned payments to consumers.
(7)
(12)
If a
health spa
fitness center
permanently ceases operation or relocates a
health
spa
fitness center
facility, the
health spa
fitness center
shall provide the division notice
at least 45 days before the day on which
health spa
fitness center
permanently ceases
operation or relocates the
health spa
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)
.
Section 52. Section
13-23-105
, which is renumbered from Section 13-23-6 is renumbered
and amended to read:
13-23-6
13-23-105
Effective
05/06/26
. Exemptions from surety bond or
certificate of deposit requirement.
(1)
A
health spa
fitness center
is exempt from Subsections
13-23-5(2)
13-23-104(7)
through
(5)
(10)
for a
health spa
fitness center
facility, if the
health spa
fitness center
only offers access to a
health spa
fitness center
service at the
health spa
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
health spa
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
health spa
fitness center
, in equal monthly installments spread over the entire
term of the contract; and
(ii)
contains the following clause: "If this
health spa
fitness center
ceases operations
at or changes the consumer's primary location in violation of Utah Code
Subsection
13-23-3(7)
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
health spa
fitness center
services described in Subsections
(1)(a)
through
(d)
.
(2)
For purposes of finding the principal amount for the
surety
bond
, letter of credit,
or
certificate of deposit required under Section
13-23-5
13-23-104
, a
health spa
fitness
center
is not required to include in the calculation described in Subsection
13-23-5(3)
13-23-104(8)
a contract that offers access to a
health spa
fitness center
service as
described in Subsection
(1)
.
(3)
A
health spa
fitness center
that claims exemption from Subsections
13-23-5(2)
13-23-104(7)
through
(5)
(10)
or that a contract should be excluded from the
calculation described in Subsection
13-23-5(3)
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)
.
Section 53. Section
13-23-106
, which is renumbered from Section 13-23-7 is renumbered
and amended to read:
13-23-7
13-23-106
Effective
05/06/26
. Enforcement -- Costs and attorney fees
-- Penalties.
(1)
(a)
The division may, on behalf of a consumer or on the division's own behalf, file
an action for injunctive relief, damages, or both to enforce this chapter.
(b)
In addition to any relief granted, the division is entitled to an award for reasonable
attorney's fees, court costs, and reasonable investigative expenses.
(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;
(c)
order disgorgement of any money received in 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.
(2)
(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
(2)(a)
is committed or permitted to continue
(3)(a)
constitutes a separate
punishable offense.
(c)
In the case of a second offense, the person is guilty of a class A misdemeanor.
(d)
In the case of a third or subsequent offense, the person is guilty of a third degree
felony.
(3)
(a)
In addition to any other penalty available under this chapter, a person who
violates this chapter is subject to:
(i)
a cease and desist order; and
(ii)
an administrative fine of up to $2,500 for each separate violation that is not a
violation described in Subsection 13-23-5(2)(d) up to $10,000 for any series of
violations arising out of the same operative facts.
(b)
The division shall deposit all administrative fines collected under this chapter into
the Consumer Protection Education and Training Fund created in Section
13-2-8
.
Section 54. Section
13-23-107
, which is renumbered from Section 13-23-8 is renumbered
and amended to read:
13-23-8
13-23-107
Effective
05/06/26
. Grounds for denial, suspension, or
revocation.
The director may, in
In
accordance with
Title 63G, Chapter 4, Administrative
Procedures Act
,
issue an order
the director may initiate adjudicative proceedings
to deny,
suspend, or revoke an application or registration
upon a finding that the order is in the public
interest and that
if
:
(1)
the division finds that the denial, suspension, or revocation is in the public interest;
(1)
(2)
(a)
the application for registration or renewal is incomplete or misleading in a
material respect;
or
(2)
(b)
the applicant or
person registered under this chapter or an officer, director,
agent, or employee of the applicant or registrant has
the applicant's principal
:
(a)
(i)
violated this chapter
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
;
(b)
(ii)
violated
violates
Chapter 11, Utah Consumer Sales Practices Act
;
(c)
(iii)
been
is
enjoined by a court, or is the subject of an administrative order
issued in this or another state, if the injunction or order:
(i)
(A)
includes a finding or admission of fraud, breach of fiduciary duty, or
material misrepresentation; or
(ii)
(B)
is based on a finding of lack of integrity, truthfulness, or mental
competence of the applicant;
(d)
(iv)
obtained
obtains
or
attempted
attempts
to obtain a registration by
misrepresentation
misrepresenting a material fact
;
(e)
(v)
failed
fails
to
timely
provide
information
the division
with any
information required by this chapter
requests
; or
(f)
(vi)
failed
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
, letter of credit,
or certificate of deposit
ceases to be in effect;
(4)
the applicant or registrant requested an exemption from maintaining a
surety
bond
,
letter of credit,
or certificate of deposit under Section
13-23-6
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
13-23-5(3)
13-23-104(8)
for a
surety
bond
, letter of credit,
or certificate of
deposit, a contract that did not meet the requirements for exclusion described in Section
13-23-6
13-23-105
; or
(6)
the applicant or registrant ceases to provide
health spa
fitness center
services.
Section 55. Section
13-25a-105
is amended to read:
13-25a-105
Effective
05/06/26
. 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
13-2-8
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.
Section 56. Section
13-26-101
, which is renumbered from Section 13-26-2 is renumbered
and amended to read:
1. General Provisions
13-26-2
13-26-101
Effective
05/06/26
. Definitions.
As used in this chapter
, unless the context otherwise requires
:
(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
.
(3)
(4)
"Division" means the Division of Consumer Protection
created in Section
13-2-102
.
(4)
(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.
(5)
(7)
"Material statement"
or "material fact"
means
information
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.
(6)
(8)
"Participant" means a person seeking to register or renew a registration as a seller
including:
(a)
a seller;
(b)
an owner;
(c)
an officer;
(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.
(7)
(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.
(8)
(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
telephone
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.
(9)
(12)
"Subscription arrangements," "standing
"Standing
order arrangements,"
"supplements," and "series arrangements" mean products or services provided
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.
(10)
(13)
(a)
"Telephone solicitation
,
"
"sale," "selling," or "solicitation of sale"
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
13-26-4
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;
(C)
the seller offers or promises a premium to a prospective purchaser if:
(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
(10)
(a)
(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
13-26-4(2)(b)(iv)
13-26-104(2)(b)(iv)
; or
(ii)
a
telephone solicitation as defined in Section
13-25a-102
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
,
"
"sale," "selling," or "solicitation of sale"
does not
include a sale or solicitation that occurs solely through
an Internet
a
website without
the use of a telephone call.
(c)
A solicitation of sale or telephone solicitation is considered complete when made,
whether or not the person receiving the solicitation agrees to the sale or to make a
charitable donation.
(11)
"Telephone solicitor" or "solicitor" means an individual who engages in a telephone
solicitation on behalf of a seller.
Section 57. Section
13-26-102
, which is renumbered from Section 13-26-3 is renumbered
and amended to read:
13-26-3
13-26-102
Effective
05/06/26
. Registration and surety bond or
certificate of deposit required.
(1)
(a)
Unless exempt under Section
13-26-4
13-26-104
,
each
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
any business operations
a business operation
in Utah.
(b)
The registration form shall designate an agent residing in this state who is
authorized by the seller to receive service of process in any action brought by this
state or a resident of this state.
(c)
If a seller fails to designate an agent to receive service or fails to appoint a successor
to the agent, the division shall:
(i)
deny the seller's application for an initial or renewal registration; and
(ii)
if the application is for a renewal registration, suspend the seller's current
registration until the seller designates an agent.
(d)
For purposes of this section only, the registered agent of a seller shall provide the
division the registered agent's proof of residency in the state in the form of:
(i)
a valid Utah driver license;
(ii)
a valid governmental photo identification issued to a resident of this state; or
(iii)
other verifiable identification indicating residency in this state.
(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;
(C)
mailing address; and
(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.
(2)
The division may impose an annual registration fee set in accordance with Section
63J-1-504
that may include the cost of the criminal background check described in
Subsection
(4)
.
(3)
(a)
Each seller subject to this chapter engaging in telephone solicitation or sales in
this state shall obtain and maintain the following security:
(i)
a performance bond issued by a surety authorized to transact surety business in
this state;
(ii)
an irrevocable letter of credit issued by a financial institution authorized under
the laws of this state or the United States doing business in this state; or
(iii)
a certificate of deposit held in this state in a financial institution authorized
under the laws of this state or the United States to accept deposits from the public.
(b)
A seller's bond, letter of credit, or certificate of deposit shall be payable to the
division for the benefit of any consumer who incurs damages as the result of the
seller's violation of this chapter.
(c)
If the consumer has first recovered full damages, the division may recover from the
bond, letter of credit, or certificate of deposit administrative fines, civil penalties,
investigative costs, attorney fees, and other costs of collecting and distributing funds
under this section.
(d)
A seller shall keep a bond, certificate of deposit, or letter of credit in force for one
year after the day on which the seller notifies the division in writing that the seller
has ceased all activities regulated by this chapter.
(e)
(4)
The seller shall post a bond, irrevocable letter of credit, or certificate of deposit in
the amount of
The surety bond or certificate of deposit described in Subsection
(3)
shall
be:
(a)
in the amount of
:
(i)
$25,000 if:
(A)
neither
the seller
nor any
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)
neither
the seller
nor any
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
any
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.
(4)
To register or renew a registration as a seller, a participant:
(a)
may not have been convicted of a felony in the 10-year period immediately before
the day on which the participant files the application;
(b)
may not have been convicted of a misdemeanor involving moral turpitude,
including theft, fraud, or dishonesty, in the 10-year period immediately before the
day on which the participant files the application; and
(c)
shall submit to the division:
(i)
the participant's fingerprints, in a form acceptable to the division, for purposes of
a criminal background check; and
(ii)
consent to a criminal background check by the Bureau of Criminal Identification
created in Section
53-10-201
.
(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;
(c)
investigative costs;
(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.
(5)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, the
division may establish by rule the registration requirements for a seller.
(6)
If information in an application for registration or for renewal of registration as a seller
materially changes or becomes incorrect or incomplete, the applicant shall, within 30
days after the day on which information changes or becomes incorrect or incomplete,
submit the correct information to the division in a manner that the division establishes
by rule.
(7)
The division director may deny or revoke a registration under this section for any
violation of this chapter.
Section 58. Section
13-26-103
is enacted to read:
13-26-103
Effective
05/06/26
. Denial, suspension, or revocation of an
application or registration.
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:
(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.
Section 59. Section
13-26-104
, which is renumbered from Section 13-26-4 is renumbered
and amended to read:
13-26-4
13-26-104
Effective
05/06/26
. 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
13-26-8
13-26-106
and
13-26-11
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;
(C)
includes at least 24 pages of written material and illustrations;
(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,
subscription,
or
standing order arrangement,
or
supplement or series 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
.
Section 60. Section
13-26-105
, which is renumbered from Section 13-26-5 is renumbered
and amended to read:
13-26-5
13-26-105
Effective
05/06/26
. 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;
(c)
complete mailing address; and
(d)
email address.
(2)
(3)
(a)
Except as provided in Subsections
(2)(b)
(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
midnight of
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
is made
.
(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
(5)
(6)
, a seller shall provide a full refund to a
purchaser who cancels a sale in accordance with this section.
(3)
(4)
A purchaser may cancel a sale by:
(a)
mailing a notice of cancellation to the seller or seller's solicitor's
correct
address,
postage prepaid
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
correct
address
or email address in accordance with
Subsection
(2)
, sending a
written
notice of cancellation to the division's office
,
postage prepaid
.
(4)
(5)
(a)
If a purchaser cancels a sale and the seller or the seller's solicitor
provides
the purchaser with the seller's correct address
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 to a purchaser the seller's correct
address
provide the information required by Subsection
(2)
, a purchaser who cancels
a sale is not required to return any canceled goods to the seller.
(5)
(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
(5)(a)
(6)(a)
from any refund due the purchaser.
Section 61. Section
13-26-106
, which is renumbered from Section 13-26-8 is renumbered
and amended to read:
13-26-8
13-26-106
Effective
05/06/26
. 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.
(1)
(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
(1)(a)
(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.
(2)
A person who violates a provision of this chapter is subject to a civil penalty in a court
of competent jurisdiction of up to $2,500 for each violation of this chapter.
(3)
(5)
(a)
The division may:
(i)
in accordance with
Title 63G, Chapter 4, Administrative Procedures Act
, conduct
an administrative proceeding to enforce the provisions of this chapter;
(ii)
bring a court action to enforce the provisions of this chapter; and
(iii)
in addition to other penalties described in this chapter, issue a cease and desist
order and impose an administrative fine of up to $2,500 for each violation of this
chapter.
(b)
For purposes of this section, each telephone solicitation
made
a person makes
in
violation of this chapter is a separate violation.
(4)
The division shall deposit all administrative fines and civil penalties collected under
this chapter into the Consumer Protection Education and Training Fund created in
Section
13-2-8
.
Section 62. Section
13-26-107
, which is renumbered from Section 13-26-10 is renumbered
and amended to read:
13-26-10
13-26-107
Effective
05/06/26
. 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.
Section 63. Section
13-26-108
, which is renumbered from Section 13-26-11 is renumbered
and amended to read:
13-26-11
13-26-108
Effective
05/06/26
. 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
or a filing with the division
, make or
cause to be made a false
material
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
13-26-5
13-26-105
;
(e)
unless the seller is exempt under Section
13-26-4
13-26-104
, fail to orally advise a
purchaser of the purchaser's right to cancel under Section
13-26-5
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
13-26-4
13-26-104
, fail to orally advise
a purchaser of the purchaser's right to cancel under Section
13-26-5
13-26-105
.
(3)
If a person knows or has reason to know that a seller or solicitor
is engaged
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.
Section 64. Section
13-28-7
is amended to read:
13-28-7
Effective
05/06/26
. 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
13-2-8
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.
Section 65. Section
13-32a-102.5
is amended to read:
13-32a-102.5
Effective
05/06/26
. 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)
The attorney general, upon request, shall give legal advice to, and act as counsel for,
the division in the exercise of its responsibilities under this chapter.
(3)
(2)
Reasonable attorney fees, costs, and interest shall be awarded to the division in any
action brought to enforce the provisions of this chapter.
(4)
(3)
Municipal and county law enforcement agencies, prosecutorial agencies, and
governmental agencies may enforce the criminal and civil provisions of this chapter.
Section 66. Section
13-32a-106.5
is amended to read:
13-32a-106.5
Effective
05/06/26
. 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
13-2-5
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.
(c)
Each separate violation of Subsection
(4)(a)
is subject to a civil penalty not to exceed
$250.
Section 67. Section
13-34-102
is amended to read:
13-34-102
Effective
05/06/26
. Division responsibilities.
(1)
The division shall:
(a)
exercise
its
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
graduated
fee
structure
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.
Section 68. Section
13-34-103
is amended to read:
13-34-103
Effective
05/06/26
. 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,
irrevocable letter of credit,
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
(c)
whether the postsecondary school is a longstanding nonprofit accredited
postsecondary school;
(3)
establishing the amount of a surety bond
,
or
certificate of deposit
, or irrevocable letter
of credit
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
, or irrevocable letter of credit
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
(c)
penalties for a postsecondary school that fails to comply with rules the division
makes under this Subsection
(10)
.
Section 69. Section
13-34-104
is amended to read:
13-34-104
Effective
05/06/26
. 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
13-2-6
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
(c)
bring an action in a court of competent jurisdiction to enforce a provision of this
chapter.
(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;
(c)
order disgorgement of money received in 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
(c)
investigative fees.
(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
13-2-8
13-2-109
.
Section 70. Section
13-34-105
is amended to read:
13-34-105
Effective
05/06/26
. 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
(C)
a district attorney or county attorney; and
(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
13-2-8
13-2-109
.
Section 71. Section
13-34-106
is amended to read:
13-34-106
Effective
05/06/26
. 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
has
:
(A)
violated
violates
,
caused
causes
a violation, or
allowed
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)
violated
violates
Chapter 11, Utah Consumer Sales Practices Act
;
(C)
been
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)
was
is
based on a finding of lack of integrity, truthfulness, or mental
competence;
(D)
been
is
convicted of a crime involving theft, fraud, or dishonesty;
(E)
obtained
obtains
or
attempted
attempts
to obtain a registration certificate by
misrepresenting any material fact;
(F)
failed
fails
to timely file with the division a report required by:
(I)
this chapter; or
(II)
a rule
made by
the division
makes
under this chapter;
(G)
failed
fails
to
furnish
provide
information
requested by
the division
requests
;
(H)
failed
fails
to pay an administrative fine
imposed by
the division
imposes
under this chapter, or a fine
imposed by
an administrative or judicial order in
Utah or another state
imposes
;
(I)
failed
fails
to demonstrate fiscal responsibility;
(J)
failed
fails
to pay the fee required to file a registration statement;
(K)
failed
fails
to satisfy the requirements of this chapter or rule made by the
division under this chapter; or
(L)
failed
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.
Section 72. Section
13-34-108
is amended to read:
13-34-108
Effective
05/06/26
. 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
who
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
made by
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;
or
(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
has received
receives
instruction
and successfully
completed
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
shall
may
not contain
any
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
it is endorsed or approved by
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
those
the services
for which the
student has already paid or is obligated to pay;
(c)
fail to notify a student that the postsecondary school intends to cease operations; or
(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)
.
Section 73. Section
13-34-109
is amended to read:
13-34-109
Effective
05/06/26
. 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;
(c)
a complete description of the services for which the student will pay, including:
(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;
(C)
the day on which the student first attends the postsecondary school; or
(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
, or irrevocable letter of credit
;
(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.
Section 74. Section
13-34-111
is amended to read:
13-34-111
Effective
05/06/26
. 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
the
postsecondary school
:
(a)
(i)
the postsecondary school:
(i)
is an active participant institution in SARA that provides distance education to
a
person
an individual
in Utah in accordance with SARA; and
(ii)
does not maintain a physical presence in the state;
(b)
is owned, controlled, operated, or maintained by
a bona fide church or religious
organization that is exempt from property taxation by this state
owns, controls,
operates, or maintains the postsecondary school
;
(c)
is a business organization, trade or professional association, fraternal society, or
labor organization that:
(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
is regulated and licensed, registered,
or otherwise approved by
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
a person
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.
Section 75. Section
13-34-201
is amended to read:
13-34-201
Effective
05/06/26
. 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;
(c)
state whether the postsecondary school is:
(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 Federal Bureau of Investigation;
(B)
(A)
the Utah Bureau of Criminal Identification; or
(C)
(B)
another
state or federal
agency
of any state
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
has obtained
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.
Section 76. Section
13-34-202
is amended to read:
13-34-202
Effective
05/06/26
. 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
(c)
an irrevocable letter of credit; or
(d)
(c)
other proof of financial viability specified in rules the division makes under
Section
13-34-103
.
(2)
The
The division shall use the
surety bond
,
or
certificate of deposit
, or irrevocable
letter of credit shall be used
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
, or irrevocable letter of credit
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.
Section 77. Section
13-34-302
is amended to read:
13-34-302
Effective
05/06/26
. 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);
(c)
makes the postsecondary school independent of the state system of higher education;
and
(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.
Section 78. Section
13-41-202
is amended to read:
13-41-202
Effective
05/06/26
. 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
(5)
(6)
, if the division prevails, the court may award
the division:
(a)
court costs;
(b)
attorney fees; and
(c)
the division's costs incurred in the investigation of the violation of this chapter.
(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
13-2-8
13-2-109
.
Section 79. Section
13-42-102
is amended to read:
13-42-102
Effective
05/06/26
. Definitions.
In
As used in
this chapter:
(1)
"Administrator" means the Division of Consumer Protection.
(2)
(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)
subject to adjustment of the dollar amount pursuant to Subsection
13-42-132(6)
,
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
or
;
(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;
(v)
(vi)
an officer or director of, or an individual performing similar functions with
respect to, a person described in Subsection
(2)(b)(i)
(1)(b)(i)
;
(vi)
(vii)
the spouse of, or an individual occupying the residence of, an individual
described in Subsections
(2)(b)(i)
(1)(b)(i)
through
(v)
(vi)
; or
(vii)
(viii)
an individual who has the relationship specified in Subsection
(2)(a)(iv)
(1)(a)(iv) or (v)
to an individual or the spouse of an individual described in
Subsections
(2)(b)(i)
(1)(b)(i)
through
(v)
(vi)
.
(3)
(2)
"Agreement" means an agreement between a provider and an individual for the
performance of debt-management services.
(4)
(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.
(5)
(4)
"Business address" means the physical location of a business, including the name
and number of a street.
(6)
(5)
"Certified counselor" means an individual certified by a training program or
certifying organization,
approved by
the
administrator
division approves
, that
authenticates the competence of
individuals
each individual
providing education and
assistance to other individuals in connection with debt-management services.
(7)
(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.
(8)
(7)
"Day" means
a
calendar day.
(9)
(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
provided
an attorney provides
in an attorney-client relationship if:
(i)
the services are provided by an attorney who
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
provided
a certified public accountant provides
in an
accountant-client relationship if:
(i)
the
services are provided by a certified public accountant who
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
provided
a member of a financial-planning profession
provides
in a financial planner-client relationship
by a member of a
financial-planning profession
if:
(i)
the
administrator
division
, by rule, determines that
members are
a member of
that financial-planning profession is
:
(A)
licensed by this state;
(B)
subject to a disciplinary mechanism;
(C)
subject to a code of professional responsibility; and
(D)
subject to a continuing education requirement; and
(ii)
there is no intermediary between the individual and the creditor other than the
financial planner
member of a financial-planning profession
or an individual
under the direct supervision of the
financial planner
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
who
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
(c)
otherwise refers a customer to a provider.
(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)
The term
"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.
Section 80. Section
13-42-103
is amended to read:
13-42-103
Effective
05/06/26
. Exempt agreements and persons.
(1)
This chapter does not apply to an agreement with an individual who the provider has
no reason to know resides in this state at the time of the agreement.
(2)
(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
it
the provider
provides the services or from their creditors.
(3)
(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(2)(b)(i)
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.
Section 81. Section
13-42-104
is amended to read:
13-42-104
Effective
05/06/26
. Registration required.
(1)
Except as otherwise provided in Subsection
(2)
, a provider may not provide
debt-management services to an individual who
it
the provider
reasonably should know
resides in this state at the time
it
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
administrator
division
shall maintain and publicize a list of the names of all
registered providers.
Section 82. Section
13-42-105
is amended to read:
13-42-105
Effective
05/06/26
. Application for registration -- Form, fee, and
accompanying documents.
(1)
An application for registration as a provider shall be in a form
prescribed by the
administrator
the division approves
.
(2)
Subject to adjustment of dollar amounts
pursuant to
in accordance with
Subsection
13-42-132(6)
, an application for registration as a provider shall be accompanied by:
(a)
the fee
established by the administrator
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
administrator
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
approved
by the administrator
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
their
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
administrator
division
;
(e)
a record consenting to the jurisdiction of this state containing:
(i)
the name, business address, and other contact information of
its
the applicant's
registered agent in this state for purposes of service of process; or
(ii)
the appointment of the
administrator
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
administrator
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
pursuant to
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
allowed by
the
administrator
division
allows
under Subsection
(3)(a)
shall balance the reduction in risk
posed by
a provider
poses by
meeting the
stated
requirements
of Subsection
(2)(d)
against
any continued need for insurance against employee and director dishonesty.
Section 83. Section
13-42-106
is amended to read:
13-42-106
Effective
05/06/26
. Application for registration -- Required
information.
An
applicant shall sign an
application for registration as a provider
shall be signed
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,
electronic-mail
email
addresses, and
Internet
website
addresses;
(2)
all names
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
have no such location
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
every
each
jurisdiction in which, during the five years immediately
preceding the application:
(a)
the applicant or any of
its
the applicant's
officers or directors
has been
was
licensed
or registered to provide debt-management services; or
(b)
individuals have resided
an individual resided
when
they
the individual
received
debt-management services from the applicant;
(6)
a statement describing, to the extent
it is known or should be known by the applicant
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
its
the applicant's
officers, directors, owners, or agents
,
;
or
(c)
any person
who
that
is authorized to have access to the trust account required by
Section
13-42-122
;
(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
it
the applicant
has not been in operation for the two years preceding the application, for the period of
its
the applicant's
existence;
(8)
evidence of accreditation by an independent accrediting organization
approved by
the
administrator
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
used
the applicant uses
or
to be used
will use
in
those programs
the
educational programs
;
(11)
a description of the applicant's financial analysis and initial budget plan, including any
form or electronic model,
used
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
all employers
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)
any
an
affiliate of the applicant; or
(b)
any
an
entity that provides products or services to the applicant or
any
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
it
the applicant
has not been in operation for the three years preceding
the application, for the period of
its
the applicant's
existence;
(18)
the identity of each director who is an affiliate, as defined in Subsection
13-42-102(2)(a)
13-42-102(1)(a)
or
(2)(b)(i)
(1)(b)(i)
,
(ii)
,
(iv)
,
(v)
,
(vi)
,
or
(vii)
,
or
(viii)
of the applicant; and
(19)
any other information that the
administrator
division
reasonably requires to perform
the
administrator's
division's
duties under Section
13-42-109
.
Section 84. Section
13-42-107
is amended to read:
13-42-107
Effective
05/06/26
. Application for registration -- Obligation to
update information.
An applicant or registered provider shall notify the
administrator
division
no later than
10 days after
a
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
.
Section 85. Section
13-42-108
is amended to read:
13-42-108
Effective
05/06/26
. 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
administrator
division
shall make the
information in an application for registration as a provider available to the public.
Section 86. Section
13-42-109
is amended to read:
13-42-109
Effective
05/06/26
. Certification of registration -- Issuance or denial.
(1)
Except as otherwise provided in Subsections
(2)
and
(3)
, the
administrator
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
administrator
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
its
the applicant's
officers, directors, or owners has defaulted
in the payment of money collected for others; or
(d)
the
administrator
division
finds that the financial responsibility, experience,
character, or general fitness of the applicant or
its
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
administrator
division
shall deny registration if:
(a)
the application is not accompanied by the fee
established by the administrator
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.
Section
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
pursuant to
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
its
the applicant's
members:
(a)
are affiliates of the applicant, as defined in Subsection
13-42-102(2)(a)
13-42-102(1)(a)
or
13-42-102(2)(b)(i)
13-42-102(1)(b)(i)
,
(ii)
,
(iv)
,
(v)
,
(vi)
,
or
(vii)
,
or (viii)
; or
(b)
after the date 10 years
within 10 years
before
the day on which the applicant's
member
first
becoming a director
became a director
of the applicant,
were
the
applicant's member was
employed by or
directors
a director
of a person that
received from the applicant more than $25,000 in either the current year or the
preceding year.
Section 87. Section
13-42-110
is amended to read:
13-42-110
Effective
05/06/26
. Certificate of registration -- Timing.
(1)
The
administrator
division
shall approve or deny an initial registration as a provider no
later than 120 days after
an application is filed
the day on which the applicant files the
applicant's application
.
(2)
In connection with a request
pursuant to
in accordance with
Subsection
13-42-106(19)
for additional information, the
administrator
division
may extend the
120-day period for not more than 60 days.
(3)
Within seven days after
denying
the day on which the division denies
an
application, the
administrator
division
, in
a record
writing
, shall inform the applicant
of the reasons for the denial.
(2)
(4)
If the
administrator
division
denies an application for registration as a provider or
does not act on an application within the time
prescribed in Subsection
(1)
described in
this section
, the applicant may appeal and request a hearing
pursuant to
in accordance
with
Title 63G, Chapter 4, Administrative Procedures Act
.
(3)
(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
.
Section 88. Section
13-42-111
is amended to read:
13-42-111
Effective
05/06/26
. Renewal of registration.
(1)
A provider shall obtain a renewal of
its
the provider's
registration annually.
(2)
An
To obtain a renewal of the provider's registration a provider shall:
(a)
submit an
application for renewal of registration as a provider
shall be
in a form
prescribed by the administrator, signed
under penalty of perjury, and:
the division
approves;
(b)
sign the application for renewal under penalty of perjury;
(a)
(c)
be filed
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;
(b)
(d)
be accompanied by
accompany the application for renewal with:
(i)
the fee
established by the administrator
the division establishes
in accordance
with Section
63J-1-504
;
and
(ii)
the bond required by Section
13-42-113
;
(c)
(e)
contain the matter
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
;
(d)
(f)
disclose
in the application for renewal
any
changes
change
in the information
contained in the applicant's application for registration or
its
the applicant's
immediately previous application for renewal,
as
if
applicable;
and
(e)
(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
preceding
before the day on which the
provider submits
the application
for renewal
:
(i)
(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;
(ii)
(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
administrator
division
;
(iii)
(C)
with a deductible not exceeding $5,000;
(iv)
(D)
payable to the applicant and this state for the benefit of the residents of
this state, as their interests may appear; and
(v)
(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
administrator
division
;
(f)
(ii)
disclose the total amount of money received by the applicant
pursuant to
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;
(g)
(iii)
disclose, to the best of the applicant's knowledge, the gross amount of
money accumulated during the preceding 12 months
pursuant to
in accordance
with
plans by or on behalf of individuals who reside in this state and with whom
the applicant has agreements; and
(h)
(iv)
provide any other information that the
administrator
division
reasonably
requires to perform the
administrator's
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
administrator
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
administrator
division
, in a
record, notifies the applicant of a denial and states the reasons for the denial.
(5)
(a)
If the
administrator
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
pursuant to
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
it
the
applicant
has agreements.
(c)
If the denial is affirmed, subject to the
administrator's
division's
order and
Section
13-42-134
, the applicant shall continue to provide debt-management services
to individuals with whom
it
the applicant
has agreements until, with the approval of
the
administrator
division
,
it
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
administrator
division
may waive or reduce the insurance requirement in
Subsection
(2)(e)
(2)(g)
if the provider does not:
(i)
maintain control of a trust account or receive money paid by an individual
pursuant to
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
the provider
may utilize
to collect fees from or expend funds on behalf of an individual.
(b)
A waiver or reduction in insurance requirements
allowed by the administrator
the
division allows
under Subsection
(6)(a)
shall balance the reduction in risk posed by a
provider
meeting the
that meets the
stated requirements against any continued need
for insurance against employee and director dishonesty.
Section 89. Section
13-42-112
is amended to read:
13-42-112
Effective
05/06/26
. Registration in another state -- Rulemaking.
(1)
(a)
Subject to rules made by the
administrator
division
, if a provider holds a license
or certificate of registration in another state authorizing
it
the provider
to provide
debt-management services, the provider may submit a copy of that license or
certificate and the application for
it
that license or certificate
instead of an
application in the form
prescribed by
described in
Subsection
13-42-105(1)
, Section
13-42-106
, or Subsection
13-42-111(2)
.
(b)
The
administrator
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
administrator
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
may be submitted
an applicant may
submit
to the
administrator
division
in compliance with this section.
Section 90. Section
13-42-113
is amended to read:
13-42-113
Effective
05/06/26
. 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
administrator
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
they
the individuals
agree to receive debt-management services from the
provider, as
their
the individuals'
interests may appear.
(2)
Subject to adjustment of the dollar amount
pursuant to
in accordance with
Subsection
13-42-132(6)
, a surety bond filed
pursuant to
in accordance with
Subsection
(1)
shall:
(a)
be in the amount of $100,000;
(b)
be issued by a
bonding,
surety
, or insurance company
company
authorized to do
business in this state and rated at least A- by a nationally recognized rating
organization; and
(c)
have payment conditioned on noncompliance of the provider or its agent with this
chapter.
(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
administrator
division
and, no
later than 30 days after
notice by the administrator
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
administrator
division
or an individual may obtain satisfaction out of the surety
bond procured
pursuant to
in accordance with
this section if:
(a)
the
administrator
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
pursuant to
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
administrator
division
, on the initiative of the
administrator
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
pursuant to
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;
(c)
to claims of individuals established to the satisfaction of the
administrator
division
,
pro rata; and
(d)
if a final order or judgment is issued under Subsection
13-42-133(1)
, to the expenses
charged
pursuant to
in accordance with
Subsection
13-42-132(2)(a)
.
Section 91. Section
13-42-114
is amended to read:
13-42-114
Effective
05/06/26
. Bond required -- Substitute.
(1)
Instead of the surety bond required by Section
13-42-113
, a provider, with the approval
of the
administrator
division
and in the amount required by Subsection
(2)
, may deliver
to the
administrator
division
:
(a)
an irrevocable letter of credit, issued or confirmed by a bank
approved by the
administrator
the division approves
, payable on presentation of a certificate by the
administrator
division
stating that the provider or
its
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
approved by the administrator
the division
approves
for this purpose; and
(ii)
delivered by the bank to the
administrator
division
on presentation of a
certificate by the
administrator
division
stating that the provider or
its
provider's
agent has not complied with this chapter.
(2)
If a provider furnishes a substitute
pursuant to
in accordance with
Subsection
(1)
,
Subsections
13-42-113(1)
,
(3)
,
(4)
, and
(5)
apply to the substitute.
Section 92. Section
13-42-118
is amended to read:
13-42-118
Effective
05/06/26
. Communication by electronic or other means.
(1)
In
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.
Section
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
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)
The
A provider shall present the
disclosures and materials required by Sections
13-42-117
,
13-42-119
, and
13-42-127
shall be presented
in a form that is capable of
being accurately reproduced for later reference.
(4)
With respect to disclosure by means of
an Internet
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)
the
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,
it
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
a
an individual requests that a
provider
is requested
, before the expiration of
90 days after
the day on which
an agreement is completed or terminated,
to
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
them
the
materials
at no charge no later than three business days after the
day on which the
provider receives the
request
,
.
(b)
but the
Notwithstanding Subsection
(6)(a)
, a
provider
need not
is not required to
comply with a request more than once per calendar month or if
it
the provider
reasonably believes the
individual makes the
request
is made
for purposes of
harassment.
(c)
If
an individual makes
a request
is made
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
an Internet
a
website shall disclose on the home page of
its
the provider's
website or on a page that is clearly and conspicuously connected to the
home page by a link that clearly reveals
its
the website's
contents:
(a)
its
the provider's
name and all names under which
it
the provider
does business;
(b)
its
the provider's
principal business address, telephone number, and electronic-mail
address, if any; and
(c)
the names of
its
the provider's
principal officers.
(8)
Subject to Subsection
(9)
, if a consumer who
has consented
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
its
the provider's
agreement with the consumer.
(9)
(a)
If a provider wishes to terminate an agreement with a consumer
pursuant to
in
accordance with
Subsection
(8)
,
it
the provider
shall notify the consumer that
it
the
provider
will terminate the agreement unless the consumer, no later than 30 days
after
receiving
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)
.
Section 93. Section
13-42-119
is amended to read:
13-42-119
Effective
05/06/26
. 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;
(c)
include the name of the individual and the address where the individual resides;
(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
to be provided
the provider will provide
;
(ii)
the amount, or method of determining the amount, of all fees, individually
itemized,
to be paid by the individual
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
will
be made
, 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
it will be made
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
its
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
its
the provider's
designee
has
received
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
administrator
division
with any questions
or complaints regarding the provider; and
(ix)
the address, telephone number, and
Internet
email
address or website of the
administrator
division
.
(2)
For purposes of Subsection
(1)(e)
, delivery of an electronic record occurs when
:
(a)
it is made
the provider makes the electronic record
available in a format in which
the individual may retrieve, save, and print
it
the electronic record;
and
(b)
the provider notifies
the individual
is notified
that
it
the electronic record
is
available.
(3)
If the
administrator
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
supplied by
the
administrator
division supplies
.
(4)
An agreement shall provide that:
(a)
the individual authorizes any bank in which the provider or
its
the provider's
agent
has established a trust account to disclose to the
administrator
division
any financial
records relating to the trust account; and
(b)
the provider will
notify
provide a notice to
the individual no later than five business
days after
learning
the day on which a creditor learns
of a creditor's final decision to
reject or withdraw from a plan and that
this
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
any
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.
Section
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;
(c)
contain a provision that restricts the individual's remedies under this chapter or law
other than this chapter; or
(d)
contain a provision that:
(i)
limits or releases the liability of
any
a
person for not performing the agreement or
for violating this chapter; or
(ii)
indemnifies
any
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.
Section 94. Section
13-42-121
is amended to read:
13-42-121
Effective
05/06/26
. Required language.
(1)
Unless the
administrator
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.
Section 95. Section
13-42-122
is amended to read:
13-42-122
Effective
05/06/26
. Trust account.
(1)
(a)
All
A provider shall hold all
money paid to
a
the
provider by or on behalf of an
individual for distribution to creditors
pursuant to
in accordance with
a plan
is held
in
a
trust
account
.
(b)
No later than two business days after
receipt
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
is furnishing
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
to be used
the provider uses
to pay a creditor or the provider's
fees, or both, if:
(a)
the
provider holds the
money
is held
in an insured account at a bank;
(b)
the individual owns the money held in the account
;
(c)
and is paid
the provider pays the individual
any interest accrued on the account;
(c)
(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(2)(b)(iv)
13-42-102(1)(b)(iv)
;
(d)
(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
(e)
(f)
the individual may terminate the agreement at any time without penalty and on
termination
must
shall
receive all money in the account, other than money earned by
the provider in
compliance
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
held in
a provider holds
in
trust
by a provider
is not property of the
provider or
its
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
has not been disbursed
to creditors of
the individual.
(5)
A provider shall:
(a)
maintain separate records of account for each individual to whom the provider
is
furnishing
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
any payments
a payment
that
are not made
the provider does not
make
or that
are misdirected
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
is furnishing
furnishes
debt-management services
with money of
other persons
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
pursuant to
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
its
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
administrator
division
by a method
approved by the administrator
the division
approves
.
(b)
Unless the
administrator
division
by rule provides otherwise, no later than five
days
thereafter
after the provider notifies the division in accordance with Subsection
(9)(a)
, the provider shall give notice to the
administrator
division
describing the
remedial action
taken or to be taken
the provider takes or will take
.
(10)
If an individual terminates an agreement or
it becomes reasonably apparent to
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
which has not been
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
administrator
division
of the name, business address, and telephone
number of the new bank.
(b)
As soon as practicable, the provider shall inform the
administrator
division
of the
account number of the trust account at the new bank.
Section 96. Section
13-42-123
is amended to read:
13-42-123
Effective
05/06/26
. 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
have signed
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
administrator
division
may authorize a provider to charge a fee based on the
nature and extent of the services
furnished by
the provider
furnishes
.
(4)
(a)
Subsections
(4)(b)
through
(d)
are subject to adjustment of dollar amounts
pursuant to
in accordance with
Subsection
13-42-132(6)
.
(b)
If an individual assents to a plan that contemplates that
creditors
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
the like
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
any
a
fee or consideration for the provider's service unless:
(i)
the provider
has renegotiated, settled, reduced, or otherwise altered
renegotiates,
settles, reduces, or otherwise alters
the terms of at least one debt under an
agreement
executed by
the individual
executes
;
(ii)
the individual
has made
makes
at least one payment
pursuant to that
in
accordance with the
agreement between the individual and the creditor or debt
collector; and
(iii)
the fee or consideration for
any
an
individual debt that
is renegotiated, settled,
reduced, or otherwise altered
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)
,
which
percentage
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
it
the provider
provides to the individual a fee not exceeding $100 or,
with the approval of the
administrator
division
, a larger fee.
(ii)
The
administrator
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
any
a
fee
paid pursuant to
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
pursuant to
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.
Section 97. Section
13-42-128
is amended to read:
13-42-128
Effective
05/06/26
. 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
held
the provider holds
in trust;
(c)
settle a debt on behalf of an individual, unless the individual assents to the settlement
after the creditor
has assented
assents to the settlement
;
(d)
take a power of attorney that authorizes
it
the provider
to settle a debt;
(e)
exercise or attempt to exercise a power of attorney after an individual
has terminated
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
pursuant to
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
its
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
its
the provider's
agreements, disclosures required by this chapter,
advertisements, or
Internet
website that
it
the provider
is:
(i)
a not-for-profit entity unless
it
the provider
is organized and properly operating
as a not-for-profit entity under the law of the state in which
it
the provider
was
formed; or
(ii)
a tax-exempt entity unless
it has received
the provider receives
certification of
tax-exempt status from the Internal Revenue Service and
is properly operating
properly operates
as a not-for-profit entity under the law of the state in which
it
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
is offered or
provided by a nonprofit entity
; or
(s)
make or use
any
an
untrue or
a
misleading statement:
(i)
to the
administrator
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;
(c)
lend money or provide credit to the individual, unless the loan or credit is:
(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
administrator
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
administrator
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
them
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.
Section 98. Section
13-42-129
is amended to read:
13-42-129
Effective
05/06/26
. Notice of litigation.
No later than 30 days after
the day on which
a provider
has been
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
administrator
division
in a record that
it
the provider
has been sued.
Section 99. Section
13-42-132
is amended to read:
13-42-132
Effective
05/06/26
. Powers of the division.
(1)
The
administrator
division
may
:
(a)
act on
its
the division's
own initiative or in response to complaints
and may
;
(b)
receive complaints
,
;
(c)
take action to obtain voluntary compliance with this chapter
,
;
(d)
refer cases to the attorney general
,
;
and
(e)
seek or provide remedies as provided in this chapter.
(2)
(a)
The
administrator
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
has delegated its
delegates the provider's
obligations under an agreement or this chapter, to determine compliance with this
chapter.
(b)
Information
The division may not disclose information
that identifies
individuals
who have agreements
an individual who has an agreement
with the provider
may
not be disclosed
to the public.
(c)
In connection with
the investigation
an investigation described under this
Subsection
(2)
, the
administrator
division
may:
(a)
(i)
charge the person
the reasonable expenses necessarily incurred
any
reasonable expense the division incurs
to conduct the examination;
(b)
(ii)
require or permit a person to file a statement under oath as to
all the facts
and circumstances
each fact and circumstances
of a matter
to be investigated
the
division investigates
; and
(c)
(iii)
seek a court order authorizing seizure from a bank at which the person
maintains
an account contemplated by
a trust account described in
Section
13-42-122
, any or all money, books, records, accounts, and other property of the
provider that
is in the control of
the bank
controls
and relates to
individuals who
reside
an individual who resides
in this state.
(3)
The
administrator
division
may adopt rules to implement the provisions of this chapter
in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
.
(4)
The
administrator
division
may
:
(a)
enter into
cooperative arrangements
a cooperative arrangement
with
any other
a
federal or state agency
having
that has
authority over providers
;
and
(b)
may
exchange with
any of those agencies
a federal or state agency
information
about a provider, including information
obtained
the division obtains
during an
examination of the provider.
(5)
The
administrator
division
shall establish fees in accordance with Section
63J-1-504
to be paid by providers
that a provider shall pay
for the expense of administering this
chapter.
(6)
(a)
The
administrator
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
that index
the United States Bureau of Labor Statistics Consumer Price Index
for All Urban Consumers
is not available, another index
adopted by rule by the
administrator
the division adopts by rule
.
(b)
The
administrator
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
shall be rounded
to the nearest $100,
except that
the division shall round
the amounts in Section
13-42-123
shall be
rounded
to the nearest dollar.
(7)
The
administrator
division
shall notify registered providers of any change in dollar
amounts made
pursuant to
in accordance with
Subsection
(6)
and make that
information available to the public.
Section 100. Section
13-42-133
is amended to read:
13-42-133
Effective
05/06/26
. Administrative remedies.
(1)
The
administrator
division
may enforce this chapter and rules
adopted
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
pursuant to
in
accordance with
Subsection
13-42-122(2)
, or director, employee, or other agent of a
provider to cease and desist from
any violations
a violation
;
(b)
ordering a provider, lead generator, person administering an account
pursuant to
in
accordance with
Subsection
13-42-122(2)
, or person that
has caused
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
pursuant to
in accordance with
Subsection
13-42-132(6)
, imposing on a provider, lead generator, person
administering an account
pursuant to
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
pursuant to
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
issued
the division issues
under Subsection
(1)(a)
or
(b)
, the
administrator
division
may impose an administrative fine not exceeding $20,000 for
each violation.
(3)
The
administrator
division
may maintain an action to enforce this chapter in any
county.
(4)
The
administrator
division
may recover the reasonable costs of enforcing the chapter
under Subsections
(1)
through
(3)
, including attorney fees based on the hours
reasonably expended
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
to impose
the division imposes
under Subsection
(1)
or
(2)
, the
administrator
division
director
shall consider
:
(a)
the seriousness of the violation
,
;
(b)
the good faith of the violator
,
;
(c)
any
a
previous
violations
violation
by 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
administrator
division director
considers relevant to the
determination of the administrative fine.
(6)
All money received through administrative fines imposed under this chapter shall be
deposited in the Consumer Protection Education and Training Fund created by Section
13-2-8
.
Section 101. Section
13-42-134
is amended to read:
13-42-134
Effective
05/06/26
. Suspension, revocation, or nonrenewal of
registration.
(1)
In this section, "insolvent" means
a provider
:
(a)
having generally ceased
ceases
to pay debts in the ordinary course of business other
than as a result of good-faith dispute;
(b)
being
is
unable to pay debts as
they
the debts
become due; or
(c)
being
is
insolvent within the meaning of the federal bankruptcy law, 11 U.S.C. Sec.
101 et seq.
(2)
The
administrator
division
may suspend, revoke, or deny renewal of a provider's
registration if:
(a)
a fact or condition exists that, if
it
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
has committed
commits
a material violation of this chapter or a rule or
order of the
administrator
division
under this chapter;
(c)
the provider is insolvent;
(d)
the provider, an employee or affiliate of the provider, a lead generator for the
provider, a person administering an account for the provider
pursuant to
in
accordance with
Subsection
13-42-122(2)
, or a person to
whom
which
the provider
has delegated its
delegates the provider's
obligations under an agreement or this
chapter
:
(i)
has refused
refuses
to permit the
administrator
division
to make an examination
authorized by this chapter
,
;
(ii)
failed
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)
made
makes
a material misrepresentation or omission in complying with
Subsection
13-42-132(2)(b)
; or
(e)
the provider
has not responded
fails to respond
within a reasonable time and in an
appropriate manner to
communications
a communication
from the
administrator
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
administrator's
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
does not
fails to
comply with Subsection
13-42-122(8)
or if the
administrator
division
otherwise finds that the public health or safety or general welfare
requires emergency action, the
administrator
division
may order a summary suspension
of the provider's registration, effective on the date
specified
the division specifies
in the
order.
(5)
If the
administrator
division
suspends, revokes, or denies renewal of the registration of
a provider, the
administrator
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
administrator
division
suspends or revokes a provider's registration, the provider
may appeal and request a hearing
pursuant to
in accordance with
Title 63G, Chapter 4,
Administrative Procedures Act
.
Section 102. Section
13-42-135
is amended to read:
13-42-135
Effective
05/06/26
. Private enforcement.
(1)
If an individual voids an agreement
pursuant to
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
pursuant to
in accordance with
the agreement, except
amounts paid to
creditors
a creditor
, in addition to the recovery under Subsections
(3)(c)
and
(d)
.
(2)
If an individual voids an agreement
pursuant to
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
made by the individual
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
caused
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
pursuant to
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;
(c)
punitive damages; and
(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
reasonably adapted
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
has received
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
of learning
after the day on which the provider learns
of the
violation.
(6)
The
administrator
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
.
Section 103. Section
13-49-102
is amended to read:
13-49-102
Effective
05/06/26
. 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
is paid, loaned, granted, given,
donated, or transferred
a person pays, loans, grants, gives, donates, or transfers
to
a
another
person
, directly or indirectly,
for or in consideration of:
(a)
services;
(b)
personal or real property; or
(c)
another thing of value.
(3)
"Department" means the Department of Commerce.
(4)
(3)
"Division" means the Division of Consumer Protection
in the department
established in Section
13-2-102
.
(5)
(4)
"Immigration consultant" means an individual who provides nonlegal assistance or
advice on an immigration matter including:
(a)
completing a document
provided by
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
provided by
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
provided by
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
valuable consideration
compensation
, referring a person to
a
another
person
who could undertake legal representation activities in an immigration matter.
(6)
(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.
Section 104. Section
13-49-201
is amended to read:
13-49-201
Effective
05/06/26
. Requirement to be registered as an immigration
consultant -- Exemptions.
(1)
(a)
Except as provided in Subsection
(1)(b)
(2)
, an individual may not engage
in
an activity of an immigration consultant
in an activity described in Subsection
13-49-102(4)
for compensation unless the individual is registered under this chapter.
(b)
(2)
Except for Subsections
13-49-303(3)
13-49-303(3)
, (4),
and
(4)
(5)
, this chapter
does not apply to an individual authorized:
(i)
(a)
to practice law in this state; or
(ii)
(b)
by federal law to represent an individual before the Board of Immigration
Appeals or the United States Citizenship and Immigration Services.
(2)
(3)
An immigration consultant may only offer nonlegal assistance or advice in an
immigration matter.
Section 105. Section
13-49-202
is amended to read:
13-49-202
Effective
05/06/26
. Application for registration -- Renewal.
(1)
To register as an immigration consultant an individual shall
submit to the division a
registration application
:
(a)
submit an annual application in a form prescribed by
in the manner
the division
determines
;
and
(b)
pay an annual
that includes:
(i)
a
registration
application
fee
determined by the department
in an amount the
division determines
in accordance with Section
63J-1-504
, which includes
;
(ii)
the costs of the criminal background check required
under
by
Subsection
(1)(e)
(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:
(c)
(a)
have good moral character in that the individual has
not
have
been convicted of:
(i)
a felony; or
(ii)
a misdemeanor involving theft, fraud, or dishonesty
within the
last
10 years
, a
misdemeanor involving theft, fraud, or dishonesty
immediately preceding the day
on which the applicant submits the applicant's application or renewal application
;
(d)
(b)
submit fingerprint cards in a form acceptable to the division at the time the
application is filed
applicant files the application
;
and
(e)
(c)
consent to a fingerprint background check of the individual by
:
(i)
the Utah Bureau of Criminal Identification
regarding the application.
; 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.
(2)
(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.
Section 106. Section
13-49-204
is amended to read:
13-49-204
Effective
05/06/26
. Bonds -- Exemption -- Statements dependent on
posting bond.
(1)
An immigration consultant shall
post a cash bond or surety bond
maintain the
following in a form the division approves, and in the amount of $50,000
:
(a)
in the amount of $50,000; and
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.
(b)
(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.
(2)
A bond required under this section shall be:
(a)
in a form approved by the division; and
(b)
conditioned upon the faithful compliance of an immigration consultant with this
chapter and division rules.
(3)
An immigration consultant shall keep the bond required under this section in force for
one year after the immigration consultant's registration expires or the immigration
consultant notifies the division in writing that the immigration consultant has ceased all
activities regulated under this chapter.
(4)
(3)
(a)
If a surety bond
posted by
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)
No
A person may not withdraw a
part of a
surety
bond
posted by
or certificate of
deposit
an immigration consultant
under
posts in accordance with
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 immigration consultant.
(5)
(4)
(a)
A
surety
bond
posted under this section by
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
(5)(a)
(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.
(6)
(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
has posted
posts
a
surety
bond
or certificate of deposit
under this section
that
is maintained
the individual maintains
throughout the period covered by the
statement.
(7)
(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.
Section 107. Section
13-49-301
is amended to read:
13-49-301
Effective
05/06/26
. 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
the
a
written contract
described in this Subsection
(1)
shall
comply with this section and rules
made by
the division
makes
in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
.
(b)
(c)
A client may cancel a written contract on or before midnight of the third
business day after
execution of
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
has been
hired
;
(b)
state the one or more services
to be performed
the immigration consultant will
perform
;
(c)
state the price for a service
to be performed
the immigration consultant will perform
;
(d)
include a statement printed in
10-point
12-point
boldface
type
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
to be prepared by
the immigration consultant
prepares
:
(i)
list the document
to be prepared
the immigration consultant will prepare
;
(ii)
explain the purpose of the document;
(iii)
explain the process
to be followed
the immigration consultant will follow
in
preparing of the document;
(iv)
explain the action
to be taken by
the immigration consultant
will take
;
(v)
state the agency or office where
the immigration consultant will file
each
document
will be filed
; 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
toll-free
telephone number and
Internet web site
website
;
and
(ii)
Office of Immigrant Assistance of the United States Department of Justice,
including a
toll-free
telephone number and
Internet
website;
(g)
include a provision stating that
a person may report
complaints concerning the
unauthorized practice of law
may be reported
to the Utah State Bar, including a
toll-free
telephone number and
Internet
website; and
(h)
in accordance with Subsection
(1)(b)
(1)(c)
, include a provision stating in
bold
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.
Section 108. Section
13-49-302
is amended to read:
13-49-302
Effective
05/06/26
. Accounting for services -- Receipts.
(1)
(a)
An immigration consultant shall provide a signed receipt to a client for each
payment
made by that
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;
(c)
that is typed or computer generated on the immigration consultant's letterhead;
(d)
that lists the individual charges and total charges for services; and
(e)
that lists the payments
made by
the client
makes
.
Section 109. Section
13-49-303
is amended to read:
13-49-303
Effective
05/06/26
. Notice to be displayed -- Disclosure to be
provided in writing.
(1)
An immigration consultant shall conspicuously display in the immigration consultant's
office a notice that shall be at least 12 by 20 inches with boldface type or print with each
character at least one inch in height and width in English and in the native language of
the immigration consultant's clientele, that contains the following information:
(a)
the full name, address, and evidence of compliance with any applicable bonding
requirement including the bond number;
(b)
a statement that the immigration consultant is not an attorney; and
(c)
the name of each immigration consultant employed at each location.
(2)
(1)
(a)
Before providing
any services
a service
, an immigration consultant shall
provide a client with a written disclosure in the native language of the client that
includes the following:
(i)
(a)
the immigration consultant's name, address, and telephone number;
(ii)
(b)
the immigration consultant's agent for service of process;
(iii)
(c)
evidence of
the immigration consultant's
compliance with any applicable
bonding
surety bond or certificate of deposit
requirement, including the bond number
or certificate of deposit number
;
and
(iv)
(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.
(b)
(2)
An immigration consultant shall obtain the signature of the client verifying that the
client received the written disclosures described in Subsection
(2)(a)
(1)
before
a
the
immigration consultant provides a
service
is provided
.
(3)
(a)
Except as provided in
Subsections
(3)(b)
and
(3)(c)
Subsection
(4)
, an
immigration consultant who prints, displays, publishes, distributes, or broadcasts, or
who causes to be printed, displayed, published, distributed, or broadcasted,
any
an
advertisement for services as an immigration consultant, shall include in
that
the
advertisement a clear and conspicuous statement that the immigration consultant is
not an attorney.
(b)
(4)
(a)
Subsection
(3)(a)
(3)
does not apply to an immigration consultant who is not
licensed as an attorney in
any
a
state or territory of the United States, but is
authorized by federal law to represent
persons
a person
before the Board of
Immigration Appeals or the United States Citizenship and Immigration Services.
(b)
A person described in this Subsection
(3)(b)
(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
persons
a person
before the Board of Immigration Appeals or the United
States Citizenship and Immigration Services.
(c)
Subsection
(3)(a)
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 and is admitted to practice before the Board of Immigration Appeals or the
United States Citizenship and Immigration Services. A person described in this
Subsection
(3)(c)
shall include in any advertisement for immigration 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, and is authorized by federal law to represent persons before the Board of
Immigration Appeals or the United States Citizenship and Immigration Services.
(4)
(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.
Section 110. Section
13-49-305
is amended to read:
13-49-305
Effective
05/06/26
. Documents -- Treatment of original documents.
(1)
(a)
An immigration consultant shall deliver to a client a copy of a document
completed
the immigration consultant completes
on behalf of the client.
(b)
An immigration consultant shall include on a document
delivered
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
date of
day on which the immigration consultant makes
the last
service to the client.
(3)
(a)
An immigration consultant shall return to a client
all original documents
each
original document
that the client
has provided
provides
to the immigration
consultant in support of the client's application including
:
(a)
an original birth certificate
,
;
(b)
a
rental agreement
,
;
(c)
a
utility bill
,
;
(d)
an
employment document
,
;
(e)
a registration document issued by the Division of Motor Vehicles
,
;
or
(f)
a passport.
(b)
(4)
An
An immigration consultant shall return to the client an
original document that
does not need
is not required
to be submitted to immigration authorities as an original
document
shall be returned by the immigration consultant
immediately after
making
the immigration consultant makes
a copy.
Section 111. Section
13-49-306
is enacted to read:
13-49-306
Effective
05/06/26
. Denial, suspension, or revocation of an
application or registration.
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:
(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.
Section 112. Section
13-49-401
is amended to read:
13-49-401
Effective
05/06/26
. Unlawful acts.
(1)
It is unlawful for an immigration consultant to:
(a)
make a false or misleading statement to a client while providing
services
a service
to
that
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;
or
(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.
(2)
A sign describing the prohibition described in Subsection
(1)(d)
shall be conspicuously
displayed in the office of an immigration consultant.
Section 113. Section
13-49-402
is amended to read:
13-49-402
Effective
05/06/26
. Violations -- Actions by division.
(1)
The division may make an investigation the division considers necessary to determine
whether a person is violating, has violated, or is about to violate this chapter or any rule
made or order issued under this chapter. As part of the investigation, the division may:
(a)
require a person to file a statement in writing;
(b)
administer oaths, subpoena witnesses and compel their attendance, take evidence,
and examine under oath any person in connection with an investigation; and
(c)
require the production of any books, papers, documents, merchandise, or other
material relevant to the investigation.
(2)
A person who violates this chapter is subject to:
(a)
a cease and desist order; and
(b)
an administrative fine of not less than $1,000 or more than $5,000 for each separate
violation.
(3)
An administrative fine shall be deposited in the Consumer Protection Education and
Training Fund created in Section
13-2-8
.
(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;
(c)
order disgorgement of any money received in 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)
(3)
(a)
A person
who
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.
Section 114. Section
13-49-403
is amended to read:
13-49-403
Effective
05/06/26
. Action by attorney general or district or county
attorney.
(1)
Upon referral from the division, the attorney general or
any
a
district or county
attorney may:
(a)
(1)
bring an action for temporary or permanent injunctive or other relief in
any court
of competent jurisdiction
a court with jurisdiction
for
any
a
violation of this part;
(b)
(2)
bring an action in
any court of competent
a court with
jurisdiction for the
collection of penalties authorized under Subsection
13-49-402(2)
13-49-402(2
)
; or
(c)
(3)
bring an action under Subsection
13-49-402(4)
13-49-402(3)
.
(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.
Section 115. Section
13-49-404
is amended to read:
13-49-404
Effective
05/06/26
. Recovery of losses.
In addition to any other remedies, a person
suffering
that suffers
pecuniary loss because
of a violation by another person of this chapter may bring an action in
any court of competent
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
determined by the court
the court determines
.
Section 116. Section
13-51-102
is amended to read:
13-51-102
Effective
05/06/26
. Definitions.
(1)
"Division" means the Division of Consumer Protection
within the Department of
Commerce
established in Section
13-2-102
.
(2)
"Prearranged ride" means a period of time that:
(a)
begins when the transportation network driver
has accepted
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
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
is operating
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.
Section 117. Section
13-51-104
is amended to read:
13-51-104
Effective
05/06/26
. Registration -- Division audits -- Fines.
(1)
A person may not operate a transportation network company without registering with
the division
under
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;
(C)
mailing address; and
(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
;
(C)
discrimination policy required under Subsection
13-51-105(6)
; and
(D)
any information that the division requires by rule that the division makes in
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2)
(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)
.
(3)
A transportation network company's registration under Subsection
(2)
is:
(a)
valid until one year after the day on which the transportation network company
registers with the division; and
(b)
renewable if the transportation network company meets the requirements of
Subsection
(2)
.
(4)
The division may audit the records of a transportation network company, including a
random sample of the transportation network company's records related to transportation
network drivers:
(a)
no more than twice per year;
(b)
at a location agreed to by the division and the transportation network company; and
(c)
notwithstanding Subsection
(4)(a)
, at any time to investigate a complaint.
(5)
The division may fine a transportation network company up to $500 for each violation
of this chapter.
Section 118. Section
13-51-104.1
is enacted to read:
13-51-104.1
Effective
05/06/26
. Denial, suspension, or revocation of an
application or registration.
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:
(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.
Section 119. Section
13-51-105
is amended to read:
13-51-105
Effective
05/06/26
. Operating requirements.
(1)
A transportation network company shall maintain an agent for service of process in the
state
and shall notify the division of the name and address of the agent
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
used
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
each
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
paid
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
(c)
accept
any
a
means of payment other than payment through a transportation
network company's software application.
(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
occurred
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
personal
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
is repairing
conducts the repair on
the vehicle; or
(b)
jointly to the owner of the vehicle and the primary lienholder.
Section 120. Section
13-51-110
is enacted to read:
13-51-110
Effective
05/06/26
. 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.
Section 121. Section
13-52-102
is amended to read:
52. Residential Solar Energy Consumer Protection Act
13-52-102
Effective
05/06/26
. 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
who
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
(c)
purchases
, or is solicited to purchase,
electricity under a power purchase agreement.
(3)
"Division" means the Division of Consumer Protection, established in
Section
13-2-1
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
employed
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
designated by
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
generated by
that
a residential solar energy
system owned by the solar retailer
generates
; and
(c)
that provides for the customer to make payments over a term of at least five years.
(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
(c)
sells or proposes to sell electricity to a customer under a power purchase agreement.
(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.
Section 122. Section
13-52-202
is amended to read:
13-52-202
Effective
05/06/26
. 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
13-26-5(2)(a)
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 must 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 notice that the solar retailer may not sell the contract to another solar company
without express customer approval;
(17)
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
(18)
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.
Section 123. Section
13-52-207
is amended to read:
13-52-207
Effective
05/06/26
. 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
13-26-5(2)(a)
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
13-26-5
(2)(a)
13-2-105(3)(a)
.
Section 124. Section
13-52-301
is amended to read:
13-52-301
Effective
05/06/26
. 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;
(c)
imposing an administrative fine of up to $2,500 for each violation of this chapter; and
(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;
(c)
order disgorgement of any money received in 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
13-2-8
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.
Section 125. Section
13-52-302
is amended to read:
13-52-302
Effective
05/06/26
. 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)
The
Except as provided in Subsection
(1)(c)
, a
registration
under this section
is
valid for one year
except as provided in Subsection
(1)
(c).
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)
The
An
application for registration shall designate
an
a registered
agent
residing
for service of process
in this state
who is authorized by the solar retailer to receive
service of process in any action this state or a resident of this state brings to the court.
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)
For purposes of this section only, the registered agent of a solar retailer shall
provide the division the registered agent's proof of residency in the state in the form
of:
(i)
a valid Utah driver license;
(ii)
a valid governmental photo identification issued to a resident of this state; or
(iii)
other verifiable identification indicating residency in this state.
(e)
(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)
(a)
The division shall impose an annual registration fee set in accordance with
Section
63J-1-504
that
shall include
includes
the cost of the criminal background
check described in this Subsection
(3)
.
(b)
(4)
To register as a solar retailer,
the
a
solar retailer and the solar retailer's participants:
(i)
(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
(ii)
(b)
shall submit to the division:
(A)
(i)
the
each
participant's fingerprints, in a form acceptable to the division, for
purposes of a criminal background check;
(B)
(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
(C)
(iii)
payment for the cost of the fingerprint card and criminal background check
described
by
in
Subsections
(3)(b)(ii)
(A)
(4)(b)(i)
and
(B)
(ii)
.
(c)
(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.
(d)
(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
(3)(b)
(4)
.
(4)
(a)
(i)
(7)
The division may claim a solar retailer's
surety
bond or certificate of deposit for the
benefit of
any
a
customer who incurs damages as the result of the solar retailer's failure
to comply with this chapter.
(ii)
(8)
(a)
For purposes of this section, damages incurred by a customer include:
(A)
(i)
labor and materials necessary to complete the installation of a residential
solar energy system that is partially installed; and
(B)
(ii)
damage to a customer's home caused during installation or repair of the
residential solar energy system.
(b)
After
the
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.
(c)
(9)
The
A
solar retailer shall
post a bond or certificate of deposit in the amount of
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:
(i)
(a)
$100,000 if:
(A)
(i)
the solar retailer or
any
an
affiliated person has not violated a chapter
enforced by the division
the division enforces
, as described in Section
13-2-1
13-2-102
,
in
the three-year period immediately before the day on which the solar
retailer files the application;
(B)
(ii)
the solar retailer has fewer than ten employees; and
(C)
(iii)
the solar retailer sells fewer than 500 kilowatts nameplate capacity annually;
(ii)
(b)
$200,000 if:
(A)
(i)
the solar retailer or
any
an
affiliated person has not violated a chapter
enforced by the division
the division enforces
, as described in Section
13-2-1
13-2-102
,
in
the three-year period immediately before the day on which the solar
retailer files the application;
(B)
(ii)
the solar retailer has ten or more employees; or
(C)
(iii)
the solar retailer sells more than 500 kilowatts nameplate capacity annually;
or
(iii)
(c)
$300,000 if the solar retailer or
any
an
affiliated person has violated a chapter
enforced by
the division
enforces
, as described in Section
13-2-1
13-2-102
, the
three-year period immediately before the day on which the solar retailer files the
application.
(d)
(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.
(5)
(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)
violated
violates
a statute
enforced by the division
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.
Section 126. Section
13-53-103
is amended to read:
53. Residential Vocational or Life Skills Program Act
13-53-103
Effective
05/06/26
. 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
approved by
the division
approves;
and
(b)
shall require
include
:
(a)
(i)
the name, address, telephone number, email address,
and
website
, and
facsimile number, if any,
of the nonprofit corporation operating the residential
vocational or life skills program;
(b)
(ii)
the name and address of the registered agent of the corporation operating the
residential vocational or life skills program
a designated registered agent for
service of process in the state, and the registered agent's:
(A)
name;
(B)
street address;
(C)
mailing address; and
(D)
telephone number
;
(c)
(iii)
the name, address, telephone number, email address,
and
website
, and
facsimile number, if any,
of the residential vocational or life skills program;
(d)
(iv)
the name and address of
any
each
entity that controls, is controlled by, or is
affiliated with the residential vocational or life skills program;
(e)
(v)
the name and residential address of
any
each
officer, director, manager, or
administrator of the residential vocational or life skills program;
(f)
(vi)
the name, address, telephone number, email address,
and
website
, and
facsimile number, if any,
of
any
each
vocational training entity affiliated with
the residential vocational or life skills program;
(g)
(vii)
a disclosure indicating whether
any
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;
(h)
(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
crime of moral turpitude within the previous 10 years
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
;
(i)
(ix)
financial information described in Subsection
13-53-108(1)
;
(j)
(x)
proof of a commercial general liability and umbrella insurance policy
providing at least a $1,000,000 per occurrence limit of liability;
(k)
(xi)
a copy of the disclosure required under Section
13-53-106
;
(l)
(xii)
evidence that the applicant meets the description of a residential vocational
or life skills program under Subsection
13-53-102(5)
; and
(m)
(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.
Section 127. Section
13-53-104
is amended to read:
13-53-104
Effective
05/06/26
. 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
(b)
(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
required by
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.
(d)
the residential vocational or life skills program or an individual described in
Subsection
13-53-103(2)(e)
causes or allows to occur a violation of any provision of
municipal, state, or federal law, including an administrative rule made under this
chapter;
(e)
(i)
an individual described in Subsection
13-53-103(2)(e)
is convicted of a felony
or a crime of moral turpitude within the previous 10 years; and
(ii)
the residential vocational or life skills program does not have adequate controls
to minimize associated risks to the participants of the residential vocational or life
skills program and to the public; or
(f)
the residential vocational or life skills program fails to pay an administrative fine
that the division lawfully imposes on the residential vocational or life skills program.
(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)(e)
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.
Section 128. Section
13-53-105
is amended to read:
13-53-105
Effective
05/06/26
. Prohibited acts.
A residential vocational or life skills program may not:
(1)
operate without a registration
issued
that the division issues
under Section
13-53-103
;
(2)
utilize
any
a
behavioral intervention that is not peer-led or that uses the services of
any
a
professional or
any
a
person purporting to be a professional;
(3)
accept a participant before providing to the participant the disclosure described in
Section
13-53-106
;
or
(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.
Section 129. Section
13-53-108
is amended to read:
13-53-108
Effective
05/06/26
. Financial requirements.
(1)
When applying for registration under Subsection
13-53-103(2)
, an applicant shall
demonstrate
fiscal
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
fiscal
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;
and
(ii)
a commercial credit report for the residential vocational or life skills program;
or
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
its
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
fiscal
financial
audit of the residential vocational or life skills
program's financial statement,
performed by
that
a certified
or licensed
public
accountant
performs
.
(3)
In evaluating a residential vocational or life skills program's
fiscal
financial
responsibility, the division may consider:
(a)
any
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)
;
(c)
the residential vocational or life skills program's explanation for 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
fiscal
financial
responsibility.
(4)
The division may require evidence of financial status at other times when
it
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.
Section 130. Section
13-53-110
is amended to read:
13-53-110
Effective
05/06/26
. 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)
issue a cease and desist order;
(b)
impose an administrative fine of up to $2,500 for each violation of this chapter; and
(c)
seek injunctive relief in a court of competent jurisdiction.
(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;
(c)
order disgorgement of any money received in 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)
All money received from fines imposed under this section shall be deposited into the
Consumer Protection Education and Training Fund, created in Section
13-2-8
.
Section 131. Section
13-57-102
is amended to read:
13-57-102
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"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.
(2)
(1)
"Director" means the director of the
Division of Consumer Protection
division
.
(3)
(2)
"Division" means the Division of Consumer Protection
of the Department of
Commerce established in Section
13-2-1
established in Section
13-2-102
.
(4)
(3)
"Health care provider" means the same as that term is defined in Section
78B-3-403
.
(5)
(4)
"Individual" means a person who:
(a)
resides in this state; and
(b)
has or may have a pending legal action
in this state
.
(6)
(5)
"Legal funding" means a payment of $500,000 or less to an individual in exchange
for the right to receive an amount out of the potential proceeds of any realized
settlement, judgment, award, or verdict the individual may receive in a civil legal action.
(7)
(6)
"Maintenance funding agreement" means an agreement between an individual and
a maintenance funding provider under which the maintenance funding provider provides
legal funding to the individual.
(8)
(7)
(a)
"Maintenance funding provider" means a
business entity
person
that engages
in the business of legal funding.
(b)
"Maintenance funding provider" does not include:
(i)
an immediate family member of an individual;
(ii)
an accountant providing accounting services to an individual; or
(iii)
an attorney providing legal services to an individual.
Section 132. Section
13-57-201
is amended to read:
13-57-201
Effective
05/06/26
. Maintenance funding provider registration and
registration renewal.
(1)
Except as provided in Subsection
(4)
, a business entity
A person
may not act as a
maintenance funding provider in this state without registering with the division.
(2)
To register as a maintenance funding provider, a
business entity
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
determined by
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
made
the division makes
in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
.
(3)
A registration of a maintenance funding provider under this chapter is effective for one
year after the day on which the division issues the registration.
(3)
(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 maintenance funding provider registration in accordance with this section, a
maintenance funding provider shall submit a registration renewal application to the
division at least 30 days before the day on which the maintenance funding provider's
registration expires.
(6)
A maintenance funding provider shall update registration information within 30 days
after the day on which information the maintenance funding provider provides on the
application becomes incorrect or incomplete.
(4)
A business entity who acts as a maintenance funding provider in the state between May
12, 2019, and May 12, 2020, is permitted to continue to act as a maintenance funding
provider:
(a)
if the person:
(i)
applies for registration in accordance with this section; and
(ii)
complies with the requirements of this chapter; and
(b)
until the division makes a determination regarding the person's application for
registration under this section.
Section 133. Section
13-57-201.1
is enacted to read:
13-57-201.1
Effective
05/06/26
. Denial, suspension, or revocation of a
registration or application.
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:
(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.
Section 134. Section
13-57-202
is amended to read:
13-57-202
Effective
05/06/26
. Maintenance funding provider operations --
Prohibited acts.
(1)
A maintenance funding provider may only provide legal funding to an individual if the
maintenance funding provider and the individual enter into a maintenance funding
agreement that meets the requirements of Section
13-57-301
.
(2)
Before executing a maintenance funding agreement, a maintenance funding provider
shall file with the division a template of the maintenance funding agreement.
(3)
A 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 an individual to the 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 an individual to the person;
(c)
refer an individual or potential individual 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
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 maintenance funding provider provides
legal funding;
or
(f)
knowingly pay or offer to pay court costs, filing fees, or attorney fees using legal
funding
.
;
(g)
represent that the division or the state endorses the maintenance funding provider;
(h)
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
(i)
include in a filing with the division a material statement of fact that the maintenance
funding provider or maintenance funding provider's principal knows or should know
is false, deceptive, inaccurate, or misleading.
(4)
A maintenance funding provider shall provide an individual who enters a maintenance
funding agreement a copy of the executed maintenance funding agreement.
Section 135. Section
13-57-203
is amended to read:
13-57-203
Effective
05/06/26
. 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)
under oath
that includes an unsworn declaration that the maintenance funding
provider's chief financial officer or the 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
director
division
; and
(c)
in a form the
director prescribes
division approves
.
(2)
The report described in Subsection
(1)
shall include, for the preceding calendar year:
(a)
the number of maintenance funding agreements entered into by the maintenance
funding provider;
(b)
the total dollar amount of legal funding the maintenance funding provider provided;
(c)
the total dollar amount of charges under each maintenance funding agreement,
itemized and including the annual rate of return;
(d)
the total dollar amount and number of maintenance funding transactions in which the
realized profit to the company was as contracted in the maintenance funding
agreement;
(e)
the total dollar amount and number of maintenance funding transactions in which the
realized profit to the company was less than contracted; and
(f)
any other information the director requires concerning the maintenance funding
provider's business or operations in the state.
Section 136. Section
13-57-302
is amended to read:
13-57-302
Effective
05/06/26
. Required disclosures.
A maintenance funding provider shall disclose in a maintenance funding agreement:
(1)
that the 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
type
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 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 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
type
font
: "CONSUMER'S RIGHT TO
CANCELLATION: You may cancel this agreement without penalty or further
obligation within five business days after the day on which you enter into this agreement
with the maintenance funding provider if you either: 1. return to the maintenance
funding provider the full amount of the disbursed funds by delivering the maintenance
funding provider's uncashed check to the maintenance funding provider's office in
person; or 2. send, by insured, certified, or registered United States mail, to the
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 maintenance funding provider's uncashed check or a registered or
certified check or money order"; and
(5)
immediately above the line for the individual's signature, the following statement in at
least a 12-point
type
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."
Section 137. Section
13-57-401
is amended to read:
13-57-401
Effective
05/06/26
. 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
business entity
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.
Section 138. Section
13-57-402
is amended to read:
13-57-402
Effective
05/06/26
. Public education regarding legal funding --
Reporting to Legislature.
(1)
The director shall help educate the general public regarding legal funding in the state
by:
(a)
(1)
analyzing and summarizing data maintenance funding providers submit under
Section
13-57-203
; and
(b)
(2)
publishing the analysis and summary described in Subsection
(1)(a)
(1)
on the
division's web page
on January 1, of each odd-numbered year
.
(2)
Before October 1, 2022, the director shall report to the Business and Labor Interim
Committee on the status of legal funding in the state and make any recommendation the
director decides is necessary to improve the regulatory framework of legal funding,
including a recommendation on whether to limit charges a maintenance funding
provider may impose under a maintenance funding agreement.
Section 139. Section
13-57-502
is amended to read:
13-57-502
Effective
05/06/26
. Penalties -- Enforcement.
(1)
After notice and an opportunity for an administrative hearing in accordance with
Title
63G, Chapter 4, Administrative Procedures Act
, the division may, in addition to
exercising the division's enforcement powers under Section
13-2-6
, enforce the
provisions of this chapter by:
(a)
revoking or suspending a maintenance funding provider's registration;
(b)
ordering a maintenance funding provider to cease and desist from further legal
funding;
(c)
imposing a penalty of up to:
(i)
$1,000 per violation; or
(ii)
$10,000 per violation that the division finds willful; or
(d)
ordering the maintenance funding provider to make restitution to an individual.
(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;
(c)
order disgorgement of any money received in 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.
(2)
(4)
The division's enforcement powers under this section and Section
13-2-6
13-2-107
do not affect an individual's legal claim against a maintenance funding provider.
Section 140. Section
13-61-101
is amended to read:
13-61-101
Effective
05/06/26
. 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.
(c)
"Biometric data" does not include:
(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
(c)
the power to exercise controlling influence of the management of an entity.
(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)(b)(i)
and
(ii)
(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
13-2-1
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;
(C)
an individual's sexual orientation;
(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
(C)
frequency.
(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:
(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 the information's disclosure or use; and
(b)
is the subject of efforts that are reasonable under the circumstances to maintain the
information's secrecy.
Section 141. Section
13-64-101
is amended to read:
13-64-101
Effective
05/06/26
. 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
13-2-1
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.
(c)
"Vehicle value protection agreement" does not include:
(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
.
Section 142. Section
13-64-301
is amended to read:
13-64-301
Effective
05/06/26
. 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;
(c)
order disgorgement of any money received after 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
(c)
investigative fees.
(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
13-2-8
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.
Section 143. Section
13-65-203
is amended to read:
13-65-203
Effective
05/06/26
. Enforcement.
(1)
The division shall administer and enforce the provisions of this chapter 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)
(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.
(4)
(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
(c)
investigative fees.
(5)
(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 attorney general on behalf of
the division.
(6)
(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
13-2-109
.
Section 144. Section
13-68-101
is amended to read:
13-68-101
Effective
05/06/26
. 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)
that is provided
to whom a lawyer referral consultant provides
lawyer referral
services
by a lawyer referral consultant
; or
(b)
that enters into an agreement to receive services from a lawyer referral consultant
.
(3)
"Compensation" means anything of economic value that
is paid, loaned, granted, given,
donated, or transferred
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
(c)
another thing of value.
(4)
"Digital marketing service" means an
Internet-based
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
in the Department of Commerce
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.
Section 145. Section
13-68-201
is amended to read:
13-68-201
Effective
05/06/26
. Requirement to be registered as a lawyer referral
consultant.
(1)
(a)
Except as provided in Subsection
(1)(b)
(2)
, an individual may not engage in an
activity of a lawyer referral consultant for compensation unless the individual
is
registered
registers as a lawyer referral consultant
under this chapter.
(b)
(2)
Except as provided in Subsections
13-68-303(3)
, (4),
and
(4)
(5)
, this chapter does
not apply to an attorney.
(2)
(3)
A lawyer referral consultant may only offer nonlegal assistance or advice in
providing lawyer referral services.
Section 146. Section
13-68-202
is amended to read:
13-68-202
Effective
05/06/26
. Application for registration.
(1)
To register as a lawyer referral consultant an individual shall:
(a)
submit an annual application in a form
prescribed by the division
:
(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
, which shall include the costs of the criminal background check required
under Subsection
(1)(e)
;
(c)
not
have
good moral character in that the individual has not
been convicted of:
(i)
a felony; or
(ii)
within the
prior 10 years
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;
(d)
(e)
submit fingerprint cards in a form acceptable to the division at the time the
application is filed;
and
(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)
;
(e)
(g)
consent to a fingerprint background check of the individual by
:
(i)
the Bureau of Criminal Identification
regarding the application
; 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.
Section 147. Section
13-68-204
is amended to read:
13-68-204
Effective
05/06/26
. Bonds -- Exemption -- Statements dependent on
posting bond.
(1)
A lawyer referral consultant shall
post a cash bond or surety bond
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.
(a)
in the amount of $50,000; and
(b)
payable to the division for the benefit of any person damaged by any of the
following acts that a lawyer referral consultant or the lawyer referral consultant's
agent, representative, or employee commits:
(i)
fraud;
(ii)
misstatement;
(iii)
misrepresentation;
(iv)
unlawful act;
(v)
omission; or
(vi)
failure to provide lawyer referral services.
(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.
(2)
A bond under this section shall be:
(a)
in a form approved by the division;
(b)
conditioned upon the faithful compliance of a lawyer referral consultant with this
chapter and division rules; and
(c)
maintained at all times while the lawyer referral consultant provides lawyer referral
services.
(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.
(3)
A lawyer referral consultant shall keep the bond required under this section in force for
one year after:
(a)
the lawyer referral consultant's registration expires; or
(b)
the lawyer referral consultant notifies the division in writing that the lawyer referral
consultant has ceased all activities regulated under this chapter.
(4)
(a)
If a surety bond
posted by
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
posted by
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
posted under this section by
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
is revoked
.
(b)
Notwithstanding Subsection
(5)(a)
, the division may make a claim against a
surety
bond
posted by
or certificate of deposit that
a lawyer referral consultant
posts
for
money
owed
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
has posted a bond under this section
that is maintained throughout the period covered by the statement
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
the bonding requirements
of this section except as provided in this section
Subsection
(1)
.
Section 148. Section
13-68-205
is enacted to read:
13-68-205
Effective
05/06/26
. Denial, suspension, or revocation of an
application or registration.
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:
(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.
Section 149. Section
13-68-301
is amended to read:
13-68-301
Effective
05/06/26
. Requirements for written contract -- Prohibited
statements.
(1)
(a)
Before a
A
lawyer referral consultant
may provide lawyer referral services to a
client, the lawyer referral consultant
shall provide
the
a
client with a written contract
before providing a lawyer referral consulting service to the client
.
(b)
(2)
The contents of the written contract described in Subsection
(1)(a)
(1)
shall
comply with this section and rules
made by
the division
makes
in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
.
(c)
(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.
(2)
(4)
A written contract under this section shall be stated in both English and in the
client's native language.
(3)
(5)
A written contract under this section shall:
(a)
state the purpose for which the
client hires the
lawyer referral consultant
has been
hired
;
(b)
state the one or more lawyer referral services
to be performed
the lawyer referral
consultant will perform
;
(c)
state the price for a lawyer referral service
to be performed
the lawyer referral
consultant will perform
;
(d)
include a statement printed in
10-point
12-point
boldface
type
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
toll-free
telephone number and
Internet
website;
(f)
include a provision stating that complaints concerning the unauthorized practice of
law may be reported to the Utah State Bar, including a
toll-free
telephone number
and
Internet
website; and
(g)
in accordance with Subsection
(1)(b)
,
include a provision stating in boldface 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 a guarantee or promise
unless the lawyer referral consultant has some basis in fact for making the guarantee or
promise.
(5)
(6)
A lawyer referral consultant may not
make a guarantee or promise described in
Subsection
(4)
orally to a client
, 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
.
(6)
(7)
A written contract is void if not written in accordance with this section.
Section 150. Section
13-68-302
is amended to read:
13-68-302
Effective
05/06/26
. Accounting for services -- Receipts.
(1)
(a)
A lawyer referral consultant shall provide a signed receipt to a client for each
payment
made by that
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
make
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;
(c)
that lists the individual and total charges for services; and
(d)
that lists the payments made by
or on behalf of
the client.
Section 151. Section
13-68-303
is amended to read:
13-68-303
Effective
05/06/26
. Notice to be displayed -- Disclosure to be
provided in writing.
(1)
A lawyer referral consultant shall conspicuously display in the lawyer referral
consultant's office a notice that shall be at least 12 by 20 inches with boldface type or
print with each character at least one inch in height and width, that contains the
following information:
(a)
the full name, address, and evidence of compliance with any applicable bonding
requirement including the bond number;
(b)
a statement that the lawyer referral consultant is not an attorney; and
(c)
the name of each lawyer referral consultant employed at each location.
(2)
(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;
(C)
mailing address; and
(D)
telephone number;
(iii)
evidence of compliance with any applicable
bonding
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.
(b)
(2)
A lawyer referral consultant shall obtain the signature of the client verifying that
the client
received
receives
the written disclosure described in Subsection
(2)(a)
(1)
before a
lawyer referral consultant provides a
service
is provided
.
(3)
(a)
Except as provided in Subsection
(3)(b)
(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.
(b)
(i)
(4)
Subsection
(3)(a)
(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.
(ii)
(5)
A person described in Subsection
(3)(b)(i)
(4)
shall include in
any
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.
(4)
(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.
Section 152. Section
13-68-401
is amended to read:
13-68-401
Effective
05/06/26
. Unlawful acts.
(1)
It is unlawful for a lawyer referral consultant or
any other
another
person to:
(a)
make
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
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;
or
(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
is initiated by the prospective
client
; or
(iv)
the communication is requested by
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.
(2)
A sign describing the prohibition described in Subsection (1)(c) shall be conspicuously
displayed in the office of a lawyer referral consultant.
Section 153. Section
13-68-402
is amended to read:
13-68-402
Effective
05/06/26
. 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)
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)
(2)
(a)
In addition to the division's enforcement powers under
Chapter 2, Division
of Consumer Protection
:
(i)
(a)
the division director may impose an administrative fine of up to $2,500 for each
violation of this chapter; and
(ii)
(b)
the division may bring an action in a court
of competent
with
jurisdiction to
enforce a provision of this chapter.
(b)
(3)
In
a court action by the division to enforce a provision of this chapter
an action the
division brings in accordance with Subsection
(2)(b)
, the court may:
(i)
(a)
declare that an act or practice violates a provision of this chapter;
(ii)
(b)
issue an injunction for a violation of this chapter;
(iii)
(c)
order disgorgement of any money received in violation of this chapter;
(iv)
(d)
order payment of disgorged money to an injured purchaser or consumer;
(v)
(e)
impose a fine of up to $2,500 for each violation of this chapter; or
(vi)
(f)
award any other relief that the court deems reasonable and necessary.
(4)
If a court
of competent
with
jurisdiction grants judgment or injunctive relief to the
division, the court shall award the division:
(a)
reasonable attorney fees;
(b)
court costs; and
(c)
investigative fees.
(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
attorney general on behalf of the
division.
(c)
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
.
(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.
(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.
Section 154. Section
13-68-403
is amended to read:
13-68-403
Effective
05/06/26
. 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
(c)
bring an action under Subsection
13-68-402(4)
13-68-402(5)
.
(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.
Section 155. Section
13-68-404
is amended to read:
13-68-404
Effective
05/06/26
. Recovery of losses.
In addition to any other remedies, a person
suffering
that suffers
pecuniary loss because
of a violation by another person of this chapter may bring an action in any court
of competent
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
determined by
the court
determines
.
Section 156. Section
13-70-101
is amended to read:
13-70-101
Effective
05/06/26
. 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
type
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
13-2-1
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.
Section 157. Section
13-70-301
is amended to read:
13-70-301
Effective
05/06/26
. 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;
(c)
order disgorgement of any money received after 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
(c)
investigative fees.
(5)
(a)
A person
who
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
any
a
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 General Fund.
(6)
The division may make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to enforce this chapter.
Section 158. Section
13-71-101
is amended to read:
13-71-101
Effective
05/06/26
. 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
13-2-1
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
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)
.
Section 159. Section
13-71-301
is amended to read:
13-71-301
Effective
05/06/26
. 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.
(c)
If a 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.
(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
13-2-8
13-2-109
.
Section 160. Section
13-72a-101
is amended to read:
13-72a-101
Effective
05/06/26
. 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
13-2-1
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
(c)
generates non-scripted outputs similar to outputs created by a human, with limited or
no human oversight.
(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)
"Utah user" means an individual located in the state at the time the individual accesses
or uses a mental health chatbot.
(16)
(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.
Section 161. Section
13-72a-204
is amended to read:
13-72a-204
Effective
05/06/26
. 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)
The attorney general shall:
(a)
upon request, give legal advice to the division; and
(b)
act as counsel for the division in the exercise of the division's responsibilities under
this chapter.
(3)
(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.
(4)
(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;
(c)
order disgorgement of money received in 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.
(5)
(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
(c)
investigative fees.
(6)
(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.
(7)
The attorney general may bring a civil action on behalf of the division to collect a civil
penalty imposed under this section.
(6)
A court may impose a civil penalty authorized under this section in a civil action
brought by the division.
(8)
(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
13-2-109
.
Section 162. Section
13-76-101
is amended to read:
13-76-101
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"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;
(c)
"older teenager" which means an individual who is at least 16 years old and under 18
years old; or
(d)
"adult" which means an individual who is at least 18 years old.
(2)
"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.
(3)
"Age rating" means a classification that provides an assessment of the suitability of an
app's content for different age groups.
(4)
"App" means a software application or electronic service that a user may run or direct
on a mobile device.
(5)
"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.
(6)
"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.
(7)
"Content description" means a description of the specific content elements that informed
an app's age rating.
(8)
"Developer" means a person that owns or controls an app made available through an
app store in the state.
(9)
"Division" means the Division of Consumer Protection, established in Section
13-2-1
13-2-101
.
(10)
"Knowingly" means to act with actual knowledge or to act with knowledge fairly
inferred based on objective circumstances.
(11)
"Minor" means an individual under 18 years old.
(12)
"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.
(13)
"Mobile device" means a phone or general purpose tablet that:
(a)
provides cellular or wireless connectivity;
(b)
is capable of connecting to the
Internet
internet
;
(c)
runs a mobile operating system; and
(d)
is capable of running apps through the mobile operating system.
(14)
"Mobile operating system" means software that:
(a)
manages mobile device hardware resources;
(b)
provides common services for mobile device programs;
(c)
controls memory allocation; and
(d)
provides interfaces for applications to access device functionality.
(15)
"Parent" means, with respect to a minor, any of the following individuals who have
legal authority to make decisions on behalf of the minor:
(a)
an individual with a parent-child relationship under Section
78B-15-201
;
(b)
a legal guardian; or
(c)
an individual with legal custody.
(16)
"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 at least 18 years old through the app store provider's age verification
methods; and
(b)
may be affiliated with one or more minor accounts.
(17)
"Parental consent disclosure" means the following information that an app store
provider is required to provide to a parent before obtaining parental consent:
(a)
if the app store provider has an age rating for the app or in-app purchase, the app's or
in-app purchase's age rating;
(b)
if the app store provider has a content description for the app or in-app purchase, the
app's or in-app purchase's content description;
(c)
a description of:
(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.
(18)
"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;
(c)
adds new monetization features, including:
(i)
in-app purchases; or
(ii)
advertisements; or
(d)
materially changes the app's:
(i)
functionality; or
(ii)
user experience.
(19)
"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
(c)
requires the parent to make an affirmative choice to:
(i)
grant consent; or
(ii)
decline consent.
Section 163. Section
13-77-101
is amended to read:
13-77-101
Effective
05/06/26
. 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
13-2-1
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
(c)
generates non-scripted outputs similar to outputs created by a human, with limited or
no human oversight.
(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
(c)
other applications as defined by division rule.
(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
13-74-201
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
.
Section 164. Section
13-77-102
is amended to read:
13-77-102
Effective
05/06/26
. 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
13-2-1
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.
Section 165. Section
13-78-101
is amended to read:
13-78-101
Effective
05/06/26
. 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
.
(2)
(3)
"Earned but unpaid income" means compensation, including salary, wages, or other
income, that
is
:
(a)
earned or accrued by
a consumer
earns or accrues
through services
provided
the
consumer provides
to an employer or as an independent contractor; and
(b)
not paid yet to the consumer by
the employer or hiring party
has not yet paid to the
consumer
.
(3)
(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.
(4)
(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.
(5)
(6)
(a)
"Provider" means a person
engaged
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.
Section 166. Section
13-78-102
is amended to read:
13-78-102
Effective
05/06/26
. Provider registration and registration renewal.
(1)
Except as provided in Subsection
(4)
, a
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
Sections
13-1-2
and
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
Sections
13-1-2
and
Section
63J-1-504
;
and
(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;
(C)
mailing address; and
(D)
telephone number.
(4)
A person that acts as a provider on May 7, 2025, may continue to act as a provider:
(a)
if the person:
(i)
applies for registration in accordance with this section on or before October 6,
2025; and
(ii)
complies with the requirements of this chapter; and
(b)
until the day on which the division issues a decision on the registration application
after which:
(i)
a person for which a registration application is denied may no longer operate; and
(ii)
a person for which a registration application is granted may operate as provider.
(5)
(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 Federal Bureau of Investigation;
(B)
(A)
the
Utah
Bureau of Criminal Identification; or
(C)
(B)
another
state or federal
agency
of any state
that performs criminal
background checks.
(b)
The provider shall pay the cost of:
(i)
the fingerprint card described in Subsection
(5)(a)(i)
(4)(a)(i)
; and
(ii)
the criminal background check described in Subsection
(5)(a)(ii)
(4)(a)(ii)
.
(6)
(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.
Section 167. Section
13-78-103
is amended to read:
13-78-103
Effective
05/06/26
. 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;
(c)
accept payment with a credit card or charge card;
(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;
or
(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)
.
Section 168. Section
13-78-104
is amended to read:
13-78-104
Effective
05/06/26
. Penalties and enforcement -- Powers -- Legal
counsel -- Fees.
(1)
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.
(2)
(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.
(3)
(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
(c)
investigative fees.
(4)
(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
attorney general on behalf of the
division.
(5)
The division shall deposit money received for the payment of a fine or civil penalty
imposed under this section into the Consumer Protection Education and Training Fund
created in Section
13-2-8
.
Section 169. Section
16-6a-102
is amended to read:
16-6a-102
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
(a)
"Address" means a location where mail can be delivered by the United States
Postal Service.
(b)
"Address" includes:
(i)
a post office box number;
(ii)
a rural free delivery route number; and
(iii)
a street name and number.
(2)
"Affiliate" means a person that directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, the person specified.
(3)
"Articles of incorporation" include:
(a)
amended articles of incorporation;
(b)
restated articles of incorporation;
(c)
articles of merger; and
(d)
a document of a similar import to the documents described in Subsections
(3)(a)
through
(c)
.
(4)
"Assumed corporate name" means a name assumed for use in this state:
(a)
by a:
(i)
foreign corporation as described in Section
16-10a-1506
; or
(ii)
a foreign nonprofit corporation as described in Section
16-6a-1506
; and
(b)
because the corporate name of the foreign corporation described in Subsection
(4)(a)
is not available for use in this state.
(5)
(a)
Except as provided in Subsection
(5)(b)
, "board of directors" means the body
authorized to manage the affairs of a domestic or foreign nonprofit corporation.
(b)
Notwithstanding Subsection
(5)(a)
, a person may not be considered a member of the
board of directors because of a power delegated to that person under Subsection
16-6a-801(2)
.
(6)
(a)
"Bylaws" means the one or more codes of rules, other than the articles of
incorporation, adopted under this chapter for the regulation or management of the
affairs of a domestic or foreign nonprofit corporation irrespective of the one or more
names by which the codes of rules are designated.
(b)
"Bylaws" includes:
(i)
amended bylaws; and
(ii)
restated bylaws.
(7)
(a)
"Cash" or "money" means:
(i)
legal tender;
(ii)
a negotiable instrument; or
(iii)
other cash equivalent readily convertible into legal tender.
(b)
"Cash" and "money" are used interchangeably in this chapter.
(8)
"Charitable organization" means the same as that term is defined in Section
13-22-2
13-22-101
.
(9)
(a)
"Class" means a group of memberships that has the same right with respect to
voting, dissolution, redemption, transfer, or other characteristics.
(b)
For purposes of Subsection
(9)(a)
, a right is considered the same if it is determined
by a formula applied uniformly to a group of memberships.
(10)
(a)
"Conspicuous" means so written that a reasonable person against whom the
writing is to operate should have noticed the writing.
(b)
"Conspicuous" includes printing or typing in:
(i)
italics;
(ii)
boldface;
(iii)
contrasting color;
(iv)
capitals; or
(v)
underlining.
(11)
"Control" or a "controlling interest" means the direct or indirect possession of the
power to direct or cause the direction of the management and policies of an entity by:
(a)
the ownership of voting shares;
(b)
contract; or
(c)
a means other than those specified in Subsection
(11)(a)
or
(b)
.
(12)
Subject to Section
16-6a-207
, "cooperative nonprofit corporation" or "cooperative"
means a nonprofit corporation organized or existing under this chapter.
(13)
"Corporate name" means:
(a)
the name of a domestic corporation as stated in the domestic corporation's articles of
incorporation;
(b)
the name of a domestic nonprofit corporation as stated in the domestic nonprofit
corporation's articles of incorporation;
(c)
the name of a foreign corporation as stated in the foreign corporation's:
(i)
articles of incorporation; or
(ii)
document of similar import to articles of incorporation; or
(d)
the name of a foreign nonprofit corporation as stated in the foreign nonprofit
corporation's:
(i)
articles of incorporation; or
(ii)
document of similar import to articles of incorporation.
(14)
(a)
"Corporate records" means the records described in Section
16-6a-1601
.
(b)
"Corporate records" does not include correspondence, communications, notes, or
other similar information, regardless of format or method of storage, that are not an
official decision, published document, or record of the corporation.
(15)
"Corporation" or "domestic corporation" means a corporation for profit that:
(a)
is not a foreign corporation; and
(b)
is incorporated under or subject to Chapter 10a, Utah Revised Business Corporation
Act.
(16)
"Delegate" means a person elected or appointed to vote in a representative assembly:
(a)
for the election of a director; or
(b)
on matters other than the election of a director.
(17)
"Deliver" includes delivery by mail or another means of transmission authorized by
Section
16-6a-103
, except that delivery to the division means actual receipt by the
division.
(18)
"Director" means a member of the board of directors.
(19)
(a)
"Distribution" means the payment of a dividend or any part of the income or
profit of a nonprofit corporation to the nonprofit corporation's:
(i)
members;
(ii)
directors; or
(iii)
officers.
(b)
"Distribution" does not include a fair-value payment for:
(i)
a good sold; or
(ii)
a service received.
(20)
"Division" means the Division of Corporations and Commercial Code.
(21)
"Effective date," when referring to a document filed by the division, means the time
and date determined in accordance with Section
16-6a-108
.
(22)
"Effective date of notice" means the date notice is effective as provided in Section
16-6a-103
.
(23)
"Electronic transmission" or "electronically transmitted" means a process of
communication not directly involving the physical transfer of paper that is suitable for
the receipt, retention, retrieval, and reproduction of information by the recipient,
whether by email, texting, facsimile, or otherwise.
(24)
(a)
"Employee" includes an officer of a nonprofit corporation.
(b)
(i)
Except as provided in Subsection
(24)(b)(ii)
, "employee" does not include a
director of a nonprofit corporation.
(ii)
Notwithstanding Subsection
(24)(b)(i)
, a director may accept one or more duties
that make that director an employee of a nonprofit corporation.
(25)
"Entity" includes:
(a)
a domestic or foreign corporation;
(b)
a domestic or foreign nonprofit corporation;
(c)
a limited liability company;
(d)
a profit or nonprofit unincorporated association;
(e)
a business trust;
(f)
an estate;
(g)
a partnership;
(h)
a trust;
(i)
two or more persons having a joint or common economic interest;
(j)
a state;
(k)
the United States; or
(l)
a foreign government.
(26)
"Executive director" means the executive director of the Department of Commerce.
(27)
"Foreign corporation" means a corporation for profit incorporated under a law other
than the laws of this state.
(28)
"Foreign nonprofit corporation" means an entity:
(a)
incorporated under a law other than the laws of this state; and
(b)
that would be a nonprofit corporation if formed under the laws of this state.
(29)
"Governmental entity" means:
(a)
(i)
the executive branch of the state;
(ii)
the judicial branch of the state;
(iii)
the legislative branch of the state;
(iv)
an independent entity, as defined in Section
63E-1-102
;
(v)
a political subdivision of the state;
(vi)
an institution of higher education, as defined in Section
53H-1-101
;
(vii)
an entity within the state system of public education; or
(viii)
the National Guard; or
(b)
any of the following that is established or controlled by a governmental entity listed
in Subsection
(29)(a)
to carry out the public's business:
(i)
an office;
(ii)
a division;
(iii)
an agency;
(iv)
a board;
(v)
a bureau;
(vi)
a committee;
(vii)
a department;
(viii)
an advisory board;
(ix)
an administrative unit; or
(x)
a commission.
(30)
"Governmental subdivision" means:
(a)
a county;
(b)
a city;
(c)
a town; or
(d)
another type of governmental subdivision authorized by the laws of this state.
(31)
"Individual" means:
(a)
a natural person;
(b)
the estate of an incompetent individual; or
(c)
the estate of a deceased individual.
(32)
"Internal Revenue Code" means the federal "Internal Revenue Code of 1986," as
amended from time to time, or to corresponding provisions of subsequent internal
revenue laws of the United States of America.
(33)
(a)
"Mail," "mailed," or "mailing" means deposit, deposited, or depositing in the
United States mail, properly addressed, first-class postage prepaid.
(b)
"Mail," "mailed," or "mailing" includes registered or certified mail for which the
proper fee is paid.
(34)
(a)
"Member" means one or more persons identified or otherwise appointed as a
member of a domestic or foreign nonprofit corporation as provided:
(i)
in the articles of incorporation;
(ii)
in the bylaws;
(iii)
by a resolution of the board of directors; or
(iv)
by a resolution of the members of the nonprofit corporation.
(b)
"Member" includes:
(i)
"voting member"; and
(ii)
a shareholder in a water company.
(35)
"Membership" refers to the rights and obligations of a member or members.
(36)
"Mutual benefit corporation" means a nonprofit corporation:
(a)
that issues shares of stock to its members evidencing a right to receive distribution of
water or otherwise representing property rights; or
(b)
all of whose assets are contributed or acquired by or for the members of the nonprofit
corporation or the members' predecessors in interest to serve the mutual purposes of
the members.
(37)
"Nonprofit corporation" or "domestic nonprofit corporation" means an entity that:
(a)
is not a foreign nonprofit corporation; and
(b)
is incorporated under or subject to this chapter.
(38)
"Notice" means the same as that term is defined in Section
16-6a-103
.
(39)
"Party related to a director" means:
(a)
the spouse of the director;
(b)
a child of the director;
(c)
a grandchild of the director;
(d)
a sibling of the director;
(e)
a parent of the director;
(f)
the spouse of an individual described in Subsections
(39)(b)
through
(e)
;
(g)
an individual having the same home as the director;
(h)
a trust or estate of which the director or another individual specified in this
Subsection
(39)
is a substantial beneficiary; or
(i)
any of the following of which the director is a fiduciary:
(i)
a trust;
(ii)
an estate;
(iii)
an incompetent;
(iv)
a conservatee; or
(v)
a minor.
(40)
"Person" means an:
(a)
individual; or
(b)
entity.
(41)
"Principal office" means:
(a)
the office, in or out of this state, designated by a domestic or foreign nonprofit
corporation as its principal office in the most recent document on file with the
division providing that information, including:
(i)
an annual report;
(ii)
an application for a certificate of authority; or
(iii)
a notice of change of principal office; or
(b)
if no principal office can be determined, a domestic or foreign nonprofit
corporation's registered office.
(42)
"Proceeding" includes:
(a)
a civil suit;
(b)
arbitration;
(c)
mediation;
(d)
a criminal action;
(e)
an administrative action; or
(f)
an investigatory action.
(43)
"Receive," when used in reference to receipt of a writing or other document by a
domestic or foreign nonprofit corporation, means the writing or other document is
actually received:
(a)
by the domestic or foreign nonprofit corporation at:
(i)
its registered office in this state; or
(ii)
its principal office;
(b)
by the secretary of the domestic or foreign nonprofit corporation, wherever the
secretary is found; or
(c)
by another person authorized by the bylaws or the board of directors to receive the
writing or other document, wherever that person is found.
(44)
(a)
"Record date" means the date established under Part
6, Members
, or Part
7,
Member Meetings and Voting
, on which a nonprofit corporation determines the
identity of the nonprofit corporation's members.
(b)
The determination described in Subsection
(44)(a)
shall be made as of the close of
business on the record date unless another time for doing so is specified when the
record date is fixed.
(45)
"Registered agent" means the registered agent of:
(a)
a domestic nonprofit corporation; or
(b)
a foreign nonprofit corporation.
(46)
"Registered office" means the office within this state designated by a domestic or
foreign nonprofit corporation as its registered office in the most recent document on file
with the division providing that information, including:
(a)
articles of incorporation;
(b)
an application for a certificate of authority; or
(c)
a notice of change of registered office.
(47)
"Secretary" means the corporate officer to whom the bylaws or the board of directors
delegates responsibility under Subsection
16-6a-818(3)
for:
(a)
the preparation and maintenance of:
(i)
minutes of the meetings of:
(A)
the board of directors; or
(B)
the members; and
(ii)
the other records and information required to be kept by the nonprofit corporation
as described in Section
16-6a-1601
; and
(b)
authenticating records of the nonprofit corporation.
(48)
"Share" means a unit of interest in a nonprofit corporation.
(49)
"Shareholder" means a person in whose name a share is registered in the records of a
nonprofit corporation.
(50)
"State," when referring to a part of the United States, includes:
(a)
a state;
(b)
a commonwealth;
(c)
the District of Columbia;
(d)
an agency or governmental and political subdivision of a state, commonwealth, or
District of Columbia;
(e)
territory or insular possession of the United States; or
(f)
an agency or governmental and political subdivision of a territory or insular
possession of the United States.
(51)
"Street address" means:
(a)
(i)
street name and number;
(ii)
city or town; and
(iii)
United States post office zip code designation; or
(b)
if, by reason of rural location or otherwise, a street name, number, city, or town does
not exist, an appropriate description other than that described in Subsection
(51)(a)
fixing as nearly as possible the actual physical location, but only if the information
includes:
(i)
the rural free delivery route;
(ii)
the county; and
(iii)
the United States post office zip code designation.
(52)
"Tribal nonprofit corporation" means a nonprofit corporation:
(a)
incorporated under the law of a tribe; and
(b)
that is at least 51% owned or controlled by the tribe.
(53)
"Tribe" means a tribe, band, nation, pueblo, or other organized group or community of
Indians, including an Alaska Native village, that is legally recognized as eligible for and
is consistent with a special program, service, or entitlement provided by the United
States to Indians because of the tribe's status as Indians.
(54)
"United States" includes a district, authority, office, bureau, commission, department,
and another agency of the United States of America.
(55)
"Vote" includes authorization by:
(a)
written ballot; and
(b)
written consent.
(56)
(a)
"Voting group" means all the members of one or more classes of members or
directors that, under this chapter, the articles of incorporation, or the bylaws, are
entitled to vote and be counted together collectively on a matter.
(b)
All members or directors entitled by this chapter, the articles of incorporation, or the
bylaws to vote generally on a matter are for that purpose a single voting group.
(57)
(a)
"Voting member" means a person entitled to vote for all matters required or
permitted under this chapter to be submitted to a vote of the members, except as
otherwise provided in the articles of incorporation or bylaws.
(b)
A person is not a voting member solely because of:
(i)
a right the person has as a delegate;
(ii)
a right the person has to designate a director; or
(iii)
a right the person has as a director.
(c)
Except as the bylaws may otherwise provide, "voting member" includes a
"shareholder" if the nonprofit corporation has shareholders.
(58)
"Water company" means:
(a)
the same as that term is defined in Subsection
16-4-102(5)
; or
(b)
a mutual benefit corporation, when the stock in the mutual benefit corporation
represents a right to receive a distribution of water for beneficial use.
Section 170. Section
16-6a-203
is amended to read:
16-6a-203
Effective
05/06/26
. Incorporation -- Required filings.
(1)
A nonprofit corporation is incorporated, and its corporate existence begins:
(a)
when the articles of incorporation are filed by the division; or
(b)
if a delayed effective date is specified as described in Subsection
16-6a-108(2)
, on
the delayed effective date, unless a certificate of withdrawal is filed prior to the
delayed effective date.
(2)
Notwithstanding Subsection
16-6a-110(4)
, the filing of the articles of incorporation by
the division is conclusive proof that all conditions precedent to incorporation have been
satisfied, except in a proceeding by the state to:
(a)
cancel or revoke the incorporation; or
(b)
involuntarily dissolve the nonprofit corporation.
(3)
Beginning January 1, 2025, a nonprofit corporation that is a charitable organization,
unless exempted by Section
13-22-15
13-22-110
, shall file with the division the
information described by Section
13-22-15
13-22-110
in the form described in Section
13-22-15
13-22-110
.
Section 171. Section
16-6a-1503
is amended to read:
16-6a-1503
Effective
05/06/26
. Application for authority to conduct affairs.
(1)
A foreign nonprofit corporation may apply for authority to conduct affairs in this state
by delivering to the division for filing an application for authority to conduct affairs
setting forth:
(a)
its corporate name and its assumed corporate name, if any;
(b)
the name of the state or country under whose law it is incorporated;
(c)
its date of incorporation;
(d)
its period of duration;
(e)
the street address of its principal office;
(f)
the information required by Subsection
16-17-203(1)
;
(g)
the names and usual business addresses of its current directors and officers;
(h)
the date it commenced or expects to commence conducting affairs in this state; and
(i)
the additional information the division determines is necessary or appropriate to
determine whether the application for authority to conduct affairs should be filed.
(2)
With the completed application required by Subsection
(1)
the foreign nonprofit
corporation shall deliver to the division for a certificate of existence, or a document of
similar import that is:
(a)
authenticated by the division or other official having custody of corporate records in
the state or country under whose law it is incorporated; and
(b)
dated within 90 days before the day on which the application for authority to conduct
affairs is filed.
(3)
The foreign nonprofit corporation shall include in the application for authority to
conduct affairs, or in an accompanying document, written consent to appointment by its
designated registered agent.
(4)
Beginning January 1, 2025, a foreign nonprofit corporation that is a charitable
organization, unless exempted by Section
13-22-15
13-22-110
, shall file the
information described in Section
13-22-15
13-22-110
in the form described in Section
13-22-15
13-22-110
.
(5)
(a)
The division may permit a tribal nonprofit corporation to apply for authority to
conduct affairs in this state in the same manner as a nonprofit corporation
incorporated in another state.
(b)
If a tribal nonprofit corporation elects to apply for authority to conduct affairs in this
state, for purposes of this chapter, the tribal nonprofit corporation shall be treated in
the same manner as a foreign nonprofit corporation incorporated under the laws of
another state.
Section 172. Section
17-70-401
is amended to read:
17-70-401
Effective
05/06/26
. Definitions.
As used in this part:
(1)
(a)
"Contribution" means any of the following when done for a political purpose:
(i)
a gift, subscription, donation, loan, advance, deposit of money, or anything of
value given to the filing entity;
(ii)
an express, legally enforceable contract, promise, or agreement to make a gift,
subscription, donation, unpaid or partially unpaid loan, advance, deposit of
money, or anything of value to the filing entity;
(iii)
any transfer of funds from another reporting entity to the filing entity;
(iv)
compensation paid by any person or reporting entity other than the filing entity
for personal services provided without charge to the filing entity;
(v)
a loan made by a county office candidate or local school board candidate
deposited into the county office candidate's or local school board candidate's own
campaign account; or
(vi)
an in-kind contribution.
(b)
"Contribution" does not include:
(i)
services provided by an individual volunteering a portion or all of the individual's
time on behalf of the filing entity if the services are provided without
compensation by the filing entity or any other person;
(ii)
money lent to the filing entity by a financial institution in the ordinary course of
business; or
(iii)
goods or services provided for the benefit of a county office candidate or local
school board candidate at less than fair market value that are not authorized by or
coordinated with the county office candidate or the local school board candidate.
(2)
"County office" means an office described in Section
17-66-102
that is required to be
filled by an election.
(3)
"County office candidate" means an individual who:
(a)
files a declaration of candidacy for a county office; or
(b)
receives a contribution, makes an expenditure, or gives consent for any other person
to receive a contribution or make an expenditure to bring about the individual's
nomination or election to a county office.
(4)
"County officer" means an individual who holds a county office.
(5)
(a)
Except as provided in Subsection
(5)(b)
, "expenditure" means any of the
following made by a reporting entity or an agent of a reporting entity on behalf of the
reporting entity:
(i)
any disbursement from contributions, receipts, or the separate bank account
required under Section
17-70-403
;
(ii)
a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
or anything of value made for a political purpose;
(iii)
an express, legally enforceable contract, promise, or agreement to make any
purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
or anything of value for a political purpose;
(iv)
compensation paid by a filing entity for personal services rendered by a person
without charge to a reporting entity;
(v)
a transfer of funds between the filing entity and a county office candidate's, or a
local school board candidate's, personal campaign committee; or
(vi)
goods or services provided by the filing entity to or for the benefit of another
reporting entity for a political purpose at less than fair market value.
(b)
"Expenditure" does not include:
(i)
services provided without compensation by an individual volunteering a portion or
all of the individual's time on behalf of a reporting entity;
(ii)
money lent to a reporting entity by a financial institution in the ordinary course of
business; or
(iii)
anything described in Subsection
(5)(a)
that is given by a reporting entity to a
candidate or officer in another state.
(6)
"Filing entity" means:
(a)
a county office candidate;
(b)
a county officer;
(c)
a local school board candidate;
(d)
a local school board member; or
(e)
a reporting entity that is required to meet a campaign finance disclosure requirement
adopted by a county in accordance with Section
17-70-403
.
(7)
"In-kind contribution" means anything of value, other than money, that is accepted by or
coordinated with a filing entity.
(8)
"Local school board candidate" means an individual who:
(a)
files a declaration of candidacy for local school board; or
(b)
receives a contribution, makes an expenditure, or gives consent for any other person
to receive a contribution or make an expenditure to bring about the individual's
nomination or election to a local school board.
(9)
(a)
"Personal use expenditure" means an expenditure that:
(i)
(A)
is not excluded from the definition of personal use expenditure by
Subsection
(9)(c)
; and
(B)
primarily furthers a personal interest of a county office candidate, county
officer, local school board candidate, or a local school board member, or a
member of a county office candidate's, county officer's, local school board
candidate's, or local school board member's family; or
(ii)
would cause the county office candidate, county officer, local school board
candidate, or local school board member to recognize the expenditure as taxable
income under federal law.
(b)
"Personal use expenditure" includes:
(i)
a mortgage, rent, utility, or vehicle payment;
(ii)
a household food item or supply;
(iii)
a clothing expense, except:
(A)
clothing bearing the county office candidate's or local school board
candidate's name or campaign slogan or logo that is used in the county office
candidate's or local school board candidate's campaign;
(B)
clothing bearing the logo or name of a jurisdiction, district, government
organization, government entity, caucus, or political party that the county
officer or local school board member represents or of which the county officer
or local school board member is a member;
(C)
repair or replacement of clothing that is damaged while the county office
candidate or county officer is engaged in an activity of a county office
candidate or county officer; or
(D)
repair or replacement of clothing that is damaged while the local school board
candidate or local school board member is engaged in an activity of a local
school board candidate or local school board member;
(iv)
admission to a sporting, artistic, or recreational event or other form of
entertainment;
(v)
dues, fees, or gratuities at a country club, health club, or recreational facility;
(vi)
a salary payment made to:
(A)
a county office candidate, county officer, local school board candidate, or
local school board member; or
(B)
a person who has not provided a bona fide service to a county candidate,
county officer, local school board candidate, or local school board member;
(vii)
a vacation;
(viii)
a vehicle expense;
(ix)
a meal expense;
(x)
a travel expense;
(xi)
payment of an administrative, civil, or criminal penalty;
(xii)
satisfaction of a personal debt;
(xiii)
a personal service, including the service of an attorney, accountant, physician,
or other professional person;
(xiv)
a membership fee for a professional or service organization; and
(xv)
a payment in excess of the fair market value of the item or service purchased.
(c)
"Personal use expenditure" does not include an expenditure made:
(i)
for a political purpose;
(ii)
for candidacy for county office or local school board;
(iii)
to fulfill a duty or activity of a county officer or local school board member;
(iv)
for a donation to a registered political party;
(v)
for a contribution to another candidate's campaign account, including sponsorship
of or attendance at an event, the primary purpose of which is to solicit a
contribution for another candidate's campaign account;
(vi)
to return all or a portion of a contribution to a contributor;
(vii)
for the following items, if made in connection with the candidacy for county
office or local school board, or an activity or duty of a county officer or local
school board member:
(A)
a mileage allowance at the rate established by the political subdivision that
provides the mileage allowance;
(B)
for motor fuel or special fuel, as defined in Section
59-13-102
;
(C)
a meal expense;
(D)
a travel expense, including an expense incurred for airfare or a rental vehicle;
(E)
a payment for a service provided by an attorney or accountant;
(F)
a tuition payment or registration fee for participation in a meeting or
conference;
(G)
a gift;
(H)
a payment for rent, utilities, a supply, or furnishings, in connection with an
office space;
(I)
a booth at a meeting or event; or
(J)
educational material;
(viii)
to purchase or mail informational material, a survey, or a greeting card;
(ix)
for a donation to a charitable organization, as defined in Section
13-22-2
13-22-101
, including admission to or sponsorship of an event, the primary
purpose of which is charitable solicitation, as defined in Section
13-22-2
13-22-101
;
(x)
to repay a loan a county office candidate or local school board candidate makes
from the candidate's personal account to the candidate's campaign account;
(xi)
to pay membership dues to a national organization whose primary purpose is to
address general public policy;
(xii)
for admission to or sponsorship of an event, the primary purpose of which is to
promote the social, educational, or economic well-being of the state or the county
candidate's, county officer's, local school board candidate's, or local school board
member's community;
(xiii)
for one or more guests of a county office candidate, county officer, local school
board candidate, or local school board member to attend an event, meeting, or
conference described in this Subsection
(9)(c)
;
(xiv)
that is connected with the performance of an activity as a county office
candidate or local school board member, or an activity or duty of a county officer
or local school board member; or
(xv)
to pay childcare expenses of:
(A)
a candidate while the candidate is engaging in campaign activity; or
(B)
an officeholder while the officeholder is engaging in the duties of an
officeholder.
(10)
"Political purpose" means an act done with the intent or in a way to influence or tend
to influence, directly or indirectly, any person to refrain from voting or to vote for or
against any candidate or a person seeking an office at any caucus, political convention,
or election.
(11)
"Reporting entity":
(a)
means the same as that term is defined in Section
20A-11-101
; and
(b)
includes a county office candidate, a county office candidate's personal campaign
committee, a county officer, a local school board candidate, a local school board
candidate's personal campaign committee, and a local school board member.
Section 173. Section
20A-11-104
is amended to read:
20A-11-104
Effective
05/06/26
. Personal use expenditure -- Authorized and
prohibited uses of campaign funds -- Enforcement -- Penalties.
(1)
(a)
As used in this chapter, "personal use expenditure" means an expenditure that:
(i)
(A)
is not excluded from the definition of personal use expenditure by
Subsection
(2)
; and
(B)
primarily furthers a personal interest of a candidate or officeholder or a
candidate's or officeholder's family, which interest is not connected with the
performance of an activity as a candidate or an activity or duty of an
officeholder; or
(ii)
would likely cause the candidate or officeholder to recognize the expenditure as
taxable income under federal or state law.
(b)
"Personal use expenditure" includes:
(i)
a mortgage, rent, utility, or vehicle payment;
(ii)
a household food item or supply;
(iii)
a clothing expense, except:
(A)
clothing bearing the candidate's name or campaign slogan or logo that is used
in the candidate's campaign;
(B)
clothing bearing the logo or name of a jurisdiction, district, government
organization, government entity, caucus, or political party that the officeholder
represents or of which the officeholder is a member; or
(C)
repair or replacement of clothing that is damaged while the candidate or
officeholder is engaged in an activity of a candidate or officeholder;
(iv)
an admission to a sporting, artistic, or recreational event or other form of
entertainment;
(v)
dues, fees, or gratuities at a country club, health club, or recreational facility;
(vi)
a salary payment made to:
(A)
a candidate or officeholder; or
(B)
a person who has not provided a bona fide service to a candidate or
officeholder;
(vii)
a vacation;
(viii)
a vehicle expense;
(ix)
a meal expense;
(x)
a travel expense;
(xi)
a payment of an administrative, civil, or criminal penalty;
(xii)
a satisfaction of a personal debt;
(xiii)
a personal service, including the service of an attorney, accountant, physician,
or other professional person;
(xiv)
a membership fee for a professional or service organization; and
(xv)
a payment in excess of the fair market value of the item or service purchased.
(2)
As used in this chapter, "personal use expenditure" does not include an expenditure
made:
(a)
for a political purpose;
(b)
for candidacy for public office;
(c)
to fulfill a duty or activity of an officeholder;
(d)
for a donation to a registered political party;
(e)
for a contribution to another candidate's campaign account, including sponsorship of
or attendance at an event, the primary purpose of which is to solicit a contribution for
another candidate's campaign account;
(f)
to return all or a portion of a contribution to a contributor;
(g)
for the following items, if made in connection with the candidacy for public office or
an activity or duty of an officeholder:
(i)
(A)
a mileage allowance at the rate established by the Division of Finance under
Section
63A-3-107
; or
(B)
for motor fuel or special fuel, as defined in Section
59-13-102
;
(ii)
a food expense, including food or beverages:
(A)
served at a campaign event;
(B)
served at a charitable event;
(C)
consumed, or provided to others, by a candidate while the candidate is
engaged in campaigning;
(D)
consumed, or provided to others, by an officeholder while the officeholder is
acting in the capacity of an officeholder; or
(E)
provided as a gift to an individual who works on a candidate's campaign or
who assists an officeholder in the officeholder's capacity as an officeholder;
(iii)
a travel expense of a candidate, if the primary purpose of the travel is related to
the candidate's campaign, including airfare, car rental, other transportation, hotel,
or other expenses incidental to the travel;
(iv)
a travel expense of an individual assisting a candidate, if the primary purpose of
the travel by the individual is to assist the candidate with the candidate's
campaign, including an expense described in Subsection
(2)(g)(iii)
;
(v)
a travel expense of an officeholder, if the primary purpose of the travel is related
to an activity or duty of the officeholder, including an expense described in
Subsection
(2)(g)(iii)
;
(vi)
a travel expense of an individual assisting an officeholder, if the primary purpose
of the travel by the individual is to assist the officeholder in an activity or duty of
an officeholder, including an expense described in Subsection
(2)(g)(iii)
;
(vii)
a payment for a service provided by an attorney or accountant;
(viii)
a tuition payment or registration fee for participation in a meeting or conference;
(ix)
a gift;
(x)
a payment for the following items in connection with an office space:
(A)
rent;
(B)
utilities;
(C)
a supply; or
(D)
furnishing;
(xi)
a booth at a meeting or event;
(xii)
educational material; or
(xiii)
an item purchased for a purpose related to a campaign or to an activity or duty
of an officeholder;
(h)
to purchase or mail informational material, a survey, or a greeting card;
(i)
for a donation to a charitable organization, as defined by Section
13-22-2
13-22-101
,
including admission to or sponsorship of an event, the primary purpose of which is
charitable solicitation, as defined in Section
13-22-2
13-22-101
;
(j)
to repay a loan a candidate makes from the candidate's personal account to the
candidate's campaign account;
(k)
to pay membership dues to a national organization whose primary purpose is to
address general public policy;
(l)
for admission to or sponsorship of an event, the primary purpose of which is to
promote the social, educational, or economic well-being of the state or the candidate's
or officeholder's community;
(m)
for one or more guests of an officeholder or candidate to attend an event, meeting,
or conference described in this Subsection
(2)
, including related travel expenses and
other expenses, if attendance by the guest is for a primary purpose described in
Subsection
(2)(g)(iv)
or
(vi)
; or
(n)
to pay childcare expenses of:
(i)
a candidate while the candidate is engaging in campaign activity; or
(ii)
an officeholder while the officeholder is engaging in the duties of an officeholder.
(3)
(a)
The lieutenant governor shall enforce this chapter prohibiting a personal use
expenditure by:
(i)
evaluating a financial statement to identify a personal use expenditure; and
(ii)
commencing an informal adjudicative proceeding in accordance with Title 63G,
Chapter 4, Administrative Procedures Act, if the lieutenant governor has probable
cause to believe a candidate or officeholder has made a personal use expenditure.
(b)
Following the proceeding, the lieutenant governor may issue a signed order requiring
a candidate or officeholder who has made a personal use expenditure to:
(i)
remit an administrative penalty of an amount equal to 50% of the personal use
expenditure to the lieutenant governor; and
(ii)
deposit the amount of the personal use expenditure in the campaign account from
which the personal use expenditure was disbursed.
(c)
The lieutenant governor shall deposit money received under Subsection
(3)(b)(i)
in
into
the General Fund.
Section 174. Section
36-11-102
is amended to read:
36-11-102
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Aggregate daily expenditures" means:
(a)
for a single lobbyist, principal, or government officer, the total of all expenditures
made within a calendar day by the lobbyist, principal, or government officer for the
benefit of an individual public official;
(b)
for an expenditure made by a member of a lobbyist group, the total of all
expenditures made within a calendar day by every member of the lobbyist group for
the benefit of an individual public official; or
(c)
for a multiclient lobbyist, the total of all expenditures made by the multiclient
lobbyist within a calendar day for the benefit of an individual public official,
regardless of whether the expenditures were attributed to different clients.
(2)
"Approved activity" means an event, a tour, or a meeting:
(a)
(i)
to which a legislator or another nonexecutive branch public official is invited;
and
(ii)
attendance at which is approved by:
(A)
the speaker of the House of Representatives, if the public official is a member
of the House of Representatives or another nonexecutive branch public official;
or
(B)
the president of the Senate, if the public official is a member of the Senate or
another nonexecutive branch public official; or
(b)
(i)
to which a public official who holds a position in the executive branch of state
government is invited; and
(ii)
attendance at which is approved by the governor or the lieutenant governor.
(3)
"Board of education" means:
(a)
a local school board described in
Title 53G, Chapter 4, School Districts
;
(b)
the State Board of Education;
(c)
the State Charter School Board created under Section
53G-5-201
; or
(d)
a charter school governing board described in Title
53G, Chapter 5
, Charter Schools.
(4)
"Capitol hill complex" means capitol hill, as defined in Section
63O-1-101
.
(5)
(a)
"Compensation" means anything of economic value, however designated, that is
paid, loaned, granted, given, donated, or transferred to an individual for the provision
of services or ownership before any withholding required by federal or state law.
(b)
"Compensation" includes:
(i)
a salary or commission;
(ii)
a bonus;
(iii)
a benefit;
(iv)
a contribution to a retirement program or account;
(v)
a payment includable in gross income, as defined in Section 62, Internal Revenue
Code, and subject to social security deductions, including a payment in excess of
the maximum amount subject to deduction under social security law;
(vi)
an amount that the individual authorizes to be deducted or reduced for salary
deferral or other benefits authorized by federal law; or
(vii)
income based on an individual's ownership interest.
(6)
"Compensation payor" means a person who pays compensation to a public official in
the ordinary course of business:
(a)
because of the public official's ownership interest in the compensation payor; or
(b)
for services rendered by the public official on behalf of the compensation payor.
(7)
"Education action" means:
(a)
a resolution, policy, or other official action for consideration by a board of education;
(b)
a nomination or appointment by an education official or a board of education;
(c)
a vote on an administrative action taken by a vote of a board of education;
(d)
an adjudicative proceeding over which an education official has direct or indirect
control;
(e)
a purchasing or contracting decision;
(f)
drafting or making a policy, resolution, or rule;
(g)
determining a rate or fee; or
(h)
making an adjudicative decision.
(8)
"Education official" means:
(a)
a member of a board of education;
(b)
an individual appointed to or employed in a position under a board of education, if
that individual:
(i)
occupies a policymaking position or makes purchasing or contracting decisions;
(ii)
drafts resolutions or policies or drafts or makes rules;
(iii)
determines rates or fees;
(iv)
makes decisions relating to an education budget or the expenditure of public
money; or
(v)
makes adjudicative decisions; or
(c)
an immediate family member of an individual described in Subsection
(8)(a)
or
(b)
.
(9)
"Event" means entertainment, a performance, a contest, or a recreational activity that an
individual participates in or is a spectator at, including a sporting event, an artistic event,
a play, a movie, dancing, or singing.
(10)
"Executive action" means:
(a)
a nomination or appointment by the governor;
(b)
the proposal, drafting, amendment, enactment, or defeat by a state agency of a rule
made in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
;
(c)
agency ratemaking proceedings; or
(d)
an adjudicative proceeding of a state agency.
(11)
(a)
"Expenditure" means any of the items listed in this Subsection
(11)(a)
when
given to or for the benefit of a public official unless consideration of equal or greater
value is received:
(i)
a purchase, payment, or distribution;
(ii)
a loan, gift, or advance;
(iii)
a deposit, subscription, or forbearance;
(iv)
services or goods;
(v)
money;
(vi)
real property;
(vii)
a ticket or admission to an event; or
(viii)
a contract, promise, or agreement, whether or not legally enforceable, to
provide any item listed in Subsections
(11)(a)(i)
through
(vii)
.
(b)
"Expenditure" does not mean:
(i)
a commercially reasonable loan made in the ordinary course of business;
(ii)
a campaign contribution:
(A)
reported in accordance with
Title 20A, Chapter 11, Campaign and Financial
Reporting Requirements
, Section
10-3-208
, Section
17-70-403
, or any
applicable ordinance adopted under Subsection
10-3-208(7)
or
17-70-403(1)
; or
(B)
lawfully given to a person that is not required to report the contribution under
a law or ordinance described in Subsection
(11)(b)(ii)(A)
;
(iii)
printed informational material that is related to the performance of the recipient's
official duties;
(iv)
a devise or inheritance;
(v)
any item listed in Subsection
(11)(a)
if:
(A)
given by a relative;
(B)
given by a compensation payor for a purpose solely unrelated to the public
official's position as a public official;
(C)
the item is food or beverage with a value that does not exceed the food
reimbursement rate, and the aggregate daily expenditures for food and
beverage do not exceed the food reimbursement rate; or
(D)
the item is not food or beverage, has a value of less than $10, and the
aggregate daily expenditures do not exceed $10;
(vi)
food or beverage that is provided at an event, a tour, or a meeting to which the
following are invited:
(A)
all members of the Legislature;
(B)
all members of a standing or interim committee;
(C)
all members of an official legislative task force;
(D)
all members of a party caucus; or
(E)
all members of a group described in Subsections
(11)(b)(vi)(A)
through
(D)
who are attending a meeting of a national organization whose primary purpose
is addressing general legislative policy;
(vii)
food or beverage that is provided at an event, a tour, or a meeting to a public
official who is:
(A)
giving a speech at the event, tour, or meeting;
(B)
participating in a panel discussion at the event, tour, or meeting; or
(C)
presenting or receiving an award at the event, tour, or meeting;
(viii)
a plaque, commendation, or award that:
(A)
is presented in public; and
(B)
has the name of the individual receiving the plaque, commendation, or award
inscribed, etched, printed, or otherwise permanently marked on the plaque,
commendation, or award;
(ix)
a gift that:
(A)
is an item that is not consumable and not perishable;
(B)
a public official, other than a local official or an education official, accepts on
behalf of the state;
(C)
the public official promptly remits to the state;
(D)
a property administrator does not reject under Section
63G-23-103
;
(E)
does not constitute a direct benefit to the public official before or after the
public official remits the gift to the state; and
(F)
after being remitted to the state, is not transferred, divided, distributed, or used
to distribute a gift or benefit to one or more public officials in a manner that
would otherwise qualify the gift as an expenditure if the gift were given
directly to a public official;
(x)
any of the following with a cash value not exceeding $30:
(A)
a publication; or
(B)
a commemorative item;
(xi)
admission to or attendance at an event, a tour, or a meeting, the primary purpose
of which is:
(A)
to solicit a contribution that is reportable under Title
20A, Chapter 11
,
Campaign and Financial Reporting Requirements, 2 U.S.C. Sec. 434, Section
10-3-208
, Section
17-70-403
, or an applicable ordinance adopted under
Subsection
10-3-208(7)
or
17-70-403(1)
;
(B)
to solicit a campaign contribution that a person is not required to report under
a law or ordinance described in Subsection
(11)(b)(xi)(A)
; or
(C)
charitable solicitation, as defined in Section
13-22-2
13-22-101
;
(xii)
travel to, lodging at, food or beverage served at, and admission to an approved
activity;
(xiii)
sponsorship of an approved activity;
(xiv)
notwithstanding Subsection
(11)(a)(vii)
, admission to, attendance at, or travel to
or from an event, a tour, or a meeting:
(A)
that is sponsored by a governmental entity;
(B)
that is widely attended and related to a governmental duty of a public official;
(C)
for a local official, that is sponsored by an organization that represents only
local governments, including the Utah Association of Counties, the Utah
League of Cities and Towns, or the Utah Association of Special Districts; or
(D)
for an education official, that is sponsored by a public school, a charter
school, or an organization that represents only public schools or charter
schools, including the Utah Association of Public Charter Schools, the Utah
School Boards Association, or the Utah School Superintendents Association; or
(xv)
travel to a widely attended tour or meeting related to a governmental duty of a
public official if that travel results in a financial savings to:
(A)
for a public official who is not a local official or an education official, the
state; or
(B)
for a public official who is a local official or an education official, the local
government or board of education to which the public official belongs.
(12)
"Food reimbursement rate" means the total amount set by the director of the Division
of Finance, by rule, under Section
63A-3-107
, for in-state meal reimbursement, for an
employee of the executive branch, for an entire day.
(13)
(a)
"Foreign agent" means an individual who engages in lobbying under contract
with a foreign government.
(b)
"Foreign agent" does not include an individual who is recognized by the United
States Department of State as a duly accredited diplomatic or consular officer of a
foreign government, including a duly accredited honorary consul.
(14)
"Foreign government" means a government other than the government of:
(a)
the United States;
(b)
a state within the United States;
(c)
a territory or possession of the United States; or
(d)
a political subdivision of the United States.
(15)
(a)
"Government officer" means:
(i)
an individual elected to a position in state or local government, when acting in the
capacity of the state or local government position;
(ii)
an individual elected to a board of education, when acting in the capacity of a
member of a board of education;
(iii)
an individual appointed to fill a vacancy in a position described in Subsection
(15)(a)(i)
or
(ii)
, when acting in the capacity of the position; or
(iv)
an individual appointed to or employed in a full-time position by state
government, local government, or a board of education, when acting in the
capacity of the individual's appointment or employment.
(b)
"Government officer" does not mean a member of the legislative branch of state
government.
(16)
"Immediate family" means:
(a)
a spouse;
(b)
a child residing in the household; or
(c)
an individual claimed as a dependent for tax purposes.
(17)
"Legislative action" means:
(a)
a bill, resolution, amendment, nomination, veto override, or other matter pending or
proposed in either house of the Legislature or its committees or requested by a
legislator; and
(b)
the action of the governor in approving or vetoing legislation.
(18)
"Lobbying" means communicating with a public official for the purpose of influencing
a legislative action, executive action, local action, or education action.
(19)
(a)
"Lobbyist" means:
(i)
an individual who is employed by a principal; or
(ii)
an individual who contracts for economic consideration, other than
reimbursement for reasonable travel expenses, with a principal to lobby a public
official.
(b)
"Lobbyist" does not include:
(i)
a government officer;
(ii)
a member or employee of the legislative branch of state government;
(iii)
a person, including a principal, while appearing at, or providing written
comments to, a hearing conducted in accordance with
Title 63G, Chapter 3, Utah
Administrative Rulemaking Act
, or
Title 63G, Chapter 4, Administrative
Procedures Act
;
(iv)
a person participating on or appearing before an advisory or study task force,
commission, board, or committee, constituted by the Legislature, a local
government, a board of education, or any agency or department of state
government, except legislative standing, appropriation, or interim committees;
(v)
a representative of a political party;
(vi)
an individual representing a bona fide church solely for the purpose of protecting
the right to practice the religious doctrines of the church, unless the individual or
church makes an expenditure that confers a benefit on a public official;
(vii)
a newspaper, television station or network, radio station or network, periodical
of general circulation, or book publisher for the purpose of publishing news items,
editorials, other comments, or paid advertisements that directly or indirectly urge
legislative action, executive action, local action, or education action;
(viii)
an individual who appears on the individual's own behalf before a committee of
the Legislature, an agency of the executive branch of state government, a board of
education, the governing body of a local government, a committee of a local
government, or a committee of a board of education, solely for the purpose of
testifying in support of or in opposition to legislative action, executive action,
local action, or education action; or
(ix)
an individual representing a business, entity, or industry, who:
(A)
interacts with a public official, in the public official's capacity as a public
official, while accompanied by a registered lobbyist who is lobbying in relation
to the subject of the interaction or while presenting at a legislative committee
meeting at the same time that the registered lobbyist is attending another
legislative committee meeting; and
(B)
does not make an expenditure for, or on behalf of, a public official in relation
to the interaction or during the period of interaction.
(20)
"Lobbyist group" means two or more lobbyists, principals, government officers, or any
combination of lobbyists, principals, and government officers, who each contribute a
portion of an expenditure made to benefit a public official or member of the public
official's immediate family.
(21)
"Local action" means:
(a)
an ordinance or resolution for consideration by a local government;
(b)
a nomination or appointment by a local official or a local government;
(c)
a vote on an administrative action taken by a vote of a local government's legislative
body;
(d)
an adjudicative proceeding over which a local official has direct or indirect control;
(e)
a purchasing or contracting decision;
(f)
drafting or making a policy, resolution, or rule;
(g)
determining a rate or fee; or
(h)
making an adjudicative decision.
(22)
"Local government" means:
(a)
a county, city, or town;
(b)
a special district governed by
Title 17B, Limited Purpose Local Government Entities
- Special Districts
;
(c)
a special service district governed by
Title 17D, Chapter 1
, Special Service District
Act;
(d)
a community reinvestment agency governed by
Title 17C, Limited Purpose Local
Government Entities - Community Reinvestment Agency Act;
(e)
a conservation district governed by
Title 17D, Chapter 3
, Conservation District Act;
(f)
a redevelopment agency; or
(g)
an interlocal entity or a joint cooperative undertaking governed by
Title 11, Chapter
13
, Interlocal Cooperation Act.
(23)
"Local official" means:
(a)
an elected member of a local government;
(b)
an individual appointed to or employed in a position in a local government if that
individual:
(i)
occupies a policymaking position or makes purchasing or contracting decisions;
(ii)
drafts ordinances or resolutions or drafts or makes rules;
(iii)
determines rates or fees; or
(iv)
makes adjudicative decisions; or
(c)
an immediate family member of an individual described in Subsection
(23)(a)
or
(b)
.
(24)
"Meeting" means a gathering of people to discuss an issue, receive instruction, or make
a decision, including a conference, seminar, or summit.
(25)
"Multiclient lobbyist" means a single lobbyist, principal, or government officer who
represents two or more clients and divides the aggregate daily expenditure made to
benefit a public official or member of the public official's immediate family between
two or more of those clients.
(26)
"Principal" means a person that employs an individual to perform lobbying, either as
an employee or as an independent contractor.
(27)
"Public official" means:
(a)
(i)
a member of the Legislature;
(ii)
an individual elected to a position in the executive branch of state government; or
(iii)
an individual appointed to or employed in a position in the executive or
legislative branch of state government if that individual:
(A)
occupies a policymaking position or makes purchasing or contracting
decisions;
(B)
drafts legislation or makes rules;
(C)
determines rates or fees; or
(D)
makes adjudicative decisions;
(b)
an immediate family member of a person described in Subsection
(27)(a)
;
(c)
a local official; or
(d)
an education official.
(28)
"Public official type" means a notation to identify whether a public official is:
(a)
(i)
a member of the Legislature;
(ii)
an individual elected to a position in the executive branch of state government;
(iii)
an individual appointed to or employed in a position in the legislative branch of
state government who meets the definition of public official under Subsection
(27)(a)(iii)
;
(iv)
an individual appointed to or employed in a position in the executive branch of
state government who meets the definition of public official under Subsection
(27)(a)(iii)
;
(v)
a local official, including a description of the type of local government for which
the individual is a local official; or
(vi)
an education official, including a description of the type of board of education for
which the individual is an education official; or
(b)
an immediate family member of an individual described in Subsection
(27)(a)
, (c), or
(d).
(29)
"Quarterly reporting period" means the three-month period covered by each financial
report required under Subsection
36-11-201(2)(a)
.
(30)
"Related person" means a person, agent, or employee who knowingly and intentionally
assists a lobbyist, principal, or government officer in lobbying.
(31)
"Relative" means:
(a)
a spouse;
(b)
a child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law,
sister-in-law, nephew, niece, aunt, uncle, or first cousin; or
(c)
a spouse of an individual described in Subsection
(31)(b)
.
(32)
"Tour" means visiting a location, for a purpose relating to the duties of a public
official, and not primarily for entertainment, including:
(a)
viewing a facility;
(b)
viewing the sight of a natural disaster; or
(c)
assessing a circumstance in relation to which a public official may need to take
action within the scope of the public official's duties.
Section 175. Section
51-9-801
is amended to read:
51-9-801
Effective
05/06/26
. Opioid Litigation Proceeds Fund.
(1)
As used in this section:
(a)
"Fund" means the Opioid Litigation Proceeds Fund created in this section.
(b)
(i)
"Principal" means money deposited into the fund in accordance with this
section.
(ii)
"Principal" does not include:
(A)
earnings credited to the fund, including interest and dividends; or
(B)
up to $21 million of money described in Subsection
(4)
that the Legislature
allocated through July 1, 2026, to be spent for various purposes through June
30, 2027.
(2)
There is created the Opioid Litigation Proceeds Fund.
(3)
The fund consists of:
(a)
any money deposited into the fund in accordance with Subsection
(4)
;
(b)
interest and dividends earned on money in the fund; and
(c)
money appropriated to the fund by the Legislature.
(4)
Notwithstanding Sections
13-2-8
13-2-109
and
67-5-40
, after reimbursement to the
attorney general and the Department of Commerce for expenses related to the matters
described in Subsection
(4)(a)
or
(b)
, the following shall be deposited into the fund:
(a)
all money received by the attorney general or the Department of Commerce as a
result of any judgment, settlement, or compromise of claims pertaining to alleged
violations of law related to the manufacture, marketing, distribution, or sale of
opioids from a case designated as an opioid case by the attorney general in a legal
services contract; and
(b)
all money received by the attorney general or the Department of Commerce as a
result of any multistate judgment, settlement, or compromise of claims pertaining to
alleged violations of law related to the manufacture, marketing, distribution, or sale
of opioids.
(5)
The state treasurer shall:
(a)
invest the money in the fund:
(i)
for the benefit of the people of the state in perpetuity; and
(ii)
with the following goals, in order of priority:
(A)
providing for growth of the principal; and
(B)
fund stability; and
(b)
invest and manage fund money as a prudent investor would by:
(i)
considering the purpose, terms, distribution requirements, and other circumstances
of the fund; and
(ii)
exercising reasonable care, skill, and caution in order to meet the standard of care
of a prudent investor.
(6)
The state treasurer may deduct any administrative costs incurred by managing the fund
from earnings generated by investments in the fund.
(7)
(a)
The Legislature may not appropriate principal from the fund.
(b)
Subject to appropriation by the Legislature, money in the account other than
principal shall be used:
(i)
to address the effects of alleged violations of law related to the manufacture,
marketing, distribution, or sale of opioids; or
(ii)
if applicable, in accordance with the terms of a settlement agreement described in
Subsection
(4)(a)
or
(b)
entered into by the state.
Section 176. Section
54-8b-18
is amended to read:
54-8b-18
Effective
05/06/26
. Definitions -- Unauthorized change of
telecommunications provider -- Unauthorized charges -- Procedures for verification --
Penalties -- Authority of commission.
(1)
For purposes of this section:
(a)
"Agents" includes any person, firm, or corporation representing a
telecommunications corporation for purposes of requesting a change in a subscriber's
telecommunications provider, but does not include a local service provider when
executing a request submitted by another service provider or
its
another service
provider's
agents.
(b)
"Freeze" means a directive from a subscriber to retain the provider of public
telecommunications services selected by the subscriber until the subscriber provides
authorization for a change to another provider of public telecommunications services
through any means by which a freeze is implemented.
(c)
"Small commercial subscriber" is a person or entity conducting a business,
agriculture, or other enterprise in the state having less than five telecommunications
lines.
(d)
"Subscriber" means a corporation, person, or government, or a person acting legally
on behalf of a corporation, person, or government who has purchased public
telecommunications services from a telecommunications corporation.
(2)
No telecommunications corporation or
its
the telecommunications corporation's
agents
shall make any change or authorize a different telecommunications corporation to make
any change in the provider of any public telecommunications service to a subscriber
unless it complies, at a minimum, with Subsections
(2)(a)
through
(e)
.
This Subsection
(2)
does not apply to a telecommunications corporation that effectuates a change in
service provider
pursuant to
in accordance with
a change authorization submitted or
requested by another telecommunications corporation.
(a)
The telecommunications corporation or
its
the telecommunications corporation's
agents shall, at a minimum, inform the subscriber of the nature, extent, and rates of
the service being offered and any charges associated with the change.
(b)
Notwithstanding Section
13-26-4
13-26-104
, changes in provider of
telecommunication service accomplished through telephone solicitation shall comply
with the Telephone Fraud Prevention Act, Sections
13-26-2
13-26-101
,
13-26-8
13-26-106
,
13-26-10
13-26-107
, and
13-26-11
13-26-108
.
(c)
For sales of residential service or small commercial subscriber service, the
telecommunications corporation or
its
the telecommunications corporation's
agents
shall confirm that the subscriber is aware of any charges that the subscriber must pay
associated with the change and that the subscriber authorizes the change of provider.
The subscriber's authorization to change the provider shall be confirmed by any one
of the following methods:
(i)
obtaining the subscriber's written authorization;
(ii)
having the subscriber's oral authorization verified by an independent third party;
or
(iii)
any means provided by rule of the Federal Communications Commission or the
commission.
(d)
If the subscriber is not an individual, an authorization shall be valid only if given by
an authorized representative of the subscriber.
(e)
(i)
The written authorization to change the provider shall be signed by the
subscriber and shall contain a clear, conspicuous, and unequivocal request by the
subscriber for a change of telecommunications provider.
(ii)
A written authorization is not valid if it is presented to the subscriber for signature
in connection with a sweepstakes, game of chance, or any other means prohibited
by commission rule.
(iii)
Nothing in this section shall be construed to prohibit any person from offering a
premium, incentive, or a thing of value to another as consideration for authorizing
a change of telecommunications service provider, provided that no element of
chance or skill is associated with the offer of the premium, incentive, or thing of
value or its receipt.
(3)
The confirmation by a third-party verifier shall, at a minimum:
(a)
confirm the subscriber's identity with information unique to the customer, unless the
customer refuses to provide identifying information, then that fact shall be noted;
(b)
confirm that the subscriber agrees to the requested change in telecommunications
service providers; and
(c)
confirm that the subscriber has the authority to select the provider as the provider of
that service.
(4)
A third-party verifier shall meet each of the following criteria:
(a)
any criteria for third-party verifiers set by the Federal Communications Commission;
(b)
not be directly or indirectly managed, controlled, directed, or owned wholly or in
part:
(i)
by the telecommunications corporation or
its
the telecommunications
corporation's
agents that seek to provide the telecommunications service or by any
corporation, firm, or person who directly or indirectly manages, controls, directs,
or owns more than 5% of the telecommunications corporation; or
(ii)
by the marketing entity that seeks to market the telecommunications service or by
any corporation, firm, or person who directly or indirectly manages, controls,
directs, or owns more than 5% of the marketing entity;
(c)
operate from facilities physically separated from:
(i)
those of the telecommunications corporation or its agents that seek to provide the
subscriber's telecommunications service; or
(ii)
those of the marketing entity that seeks to market a telecommunications service to
the subscriber; and
(d)
not derive commissions or compensation based upon the number of change
authorizations verified.
(5)
A telecommunications corporation or its agents seeking to verify the change
authorization shall connect the subscriber to the third-party verifier or arrange for the
third-party verifier to call the subscriber to verify the change authorization.
(6)
A third-party verifier that obtains the subscriber's oral verification regarding the change
shall record that verification by obtaining appropriate verification data.
(7)
(a)
The record verifying a subscriber's change of provider shall be available to the
subscriber upon request.
(b)
Information obtained from the subscriber through verification may not be used for
any other purpose.
(c)
Any intentional unauthorized release of the information in Subsection
(7)(b)
is
grounds for penalties or other action by the commission or remedies provided by law
to the aggrieved subscriber against the telecommunications corporation, third-party
verifier, their agents, or their employees who are responsible for the violation.
(8)
The third-party verification shall occur in the same language as that in which the change
was solicited.
(9)
The verification requirements described in this section shall apply to all changes in the
provider of any public telecommunications service.
(10)
The commission may promulgate rules:
(a)
necessary to implement this section;
(b)
consistent with any rules promulgated by the Federal Communications Commission;
and
(c)
in a nondiscriminatory and competitively neutral manner.
(11)
(a)
Each subscriber may elect to require the telecommunications corporation
providing the subscriber's local exchange service to implement a freeze until the
subscriber provides authorization for a change to another provider of public
telecommunications services.
(b)
Once a subscriber has elected the freeze option under Subsection
(11)(a)
, the
telecommunications corporation providing the subscriber's local exchange service
may not process a request to change the subscriber to another provider of
telecommunications services without prior authorization directly from the subscriber.
(12)
(a)
Whenever the subscriber's provider of a telecommunications service changes, the
new provider shall:
(i)
retain a record of the verified change authorization consistent with requirements of
the Federal Communications Commission or rules issued by the commission; and
(ii)
be responsible for providing a conspicuous notice of the change within 30 days of
the effective date of the change of service.
(b)
At a minimum, the notice in Subsection
(12)(a)(ii)
shall identify the new provider,
contain a general description of the service and price, and provide information
necessary for the subscriber to have questions answered or to rescind the change.
(13)
Any bill shall identify each telecommunications service provider of telecommunication
service for which billing is rendered.
(14)
(a)
Any person or provider of telecommunications service inadvertently or
knowingly designating or changing the subscriber's telecommunications service
provider in violation of this section shall refund to the subscriber any amounts
required by the rules of the Federal Communications Commission and the
commission.
(b)
The unauthorized provider in Subsection
(14)(a)
additionally shall:
(i)
bear all costs of restoring the customer to the service of the subscriber's original
service provider; and
(ii)
pay to any other telecommunications provider any fees set by the commission for
the designation or change.
(15)
Proceedings for violations of this section may be commenced by request for agency
action filed with the commission by a subscriber, a telecommunications corporation, the
Division of Public Utilities, or by the commission on its own motion.
(16)
Any telecommunications corporation, its agents, or a third-party verifier who violates
this section or rules adopted to implement this section shall be subject to the provisions
of Sections
54-7-23
through
54-7-29
.
(17)
The commission is granted authority to enforce provisions relating to an unauthorized
telecommunication service provider change in interstate and intrastate
telecommunication service involving telecommunications corporations operating in the
state.
Section 177. Section
58-16a-305
is amended to read:
58-16a-305
Effective
05/06/26
. License -- Exemptions.
In addition to the exemptions from licensure in Section
58-1-307
, the following persons
may engage in acts included in the definition of the practice of optometry subject to the stated
circumstances and limitations without being licensed under this chapter:
(1)
a person who sells contact lenses on prescription provided by a person authorized under
state law to practice either optometry or medicine and surgery if the person complies
with Section
58-16a-801
;
(2)
a person who sells eyeglasses or spectacles as articles of merchandise or who fabricates
them from a prescription if the person complies with Subsection
58-16a-801(2)
, and if
the person:
(a)
does so in the ordinary course of trade from a permanently located and established
place of business;
(b)
does not traffic or attempt to traffic upon assumed skill in testing the eye and
adapting lenses according to the test;
(c)
does not duplicate, replace, or accept for replacement any ophthalmic lens, except in
the case of an emergency;
(d)
does not use in the testing of the eyes any lenses or instruments other than the lenses
actually sold; and
(e)
does not give or offer eyeglasses or spectacles as premiums as defined in Section
13-26-2
13-26-101
; and
(3)
a person who fits contact lenses under the following conditions:
(a)
he has a current certification from both the American Board of Opticianry and the
National Contact Lens Examiners;
(b)
he does not give or offer contact lenses as premiums;
(c)
he does not perform a refraction, over-refraction, or attempt to traffic upon assumed
skill in testing the eye;
(d)
he operates in the ordinary course of trade from a permanently located and
established place of business;
(e)
he performs the work involved in fitting contact lenses himself and does not delegate
the contact lens fitting to any other individual who is not qualified under this
Subsection
(3)
;
(f)
he does not use in the testing of the eye any lenses or instruments other than the
lenses he actually will sell;
(g)
he provides services only to a patient who:
(i)
presents an unexpired contact lens prescription; or
(ii)
has had an eye examination within the prior six months by an optometrist or
ophthalmologist meeting the requirements under Section
58-16a-306
;
(h)
he maintains a copy of the patient's contact lens prescription for not less than seven
years;
(i)
he enters into a written agreement with an optometrist or an ophthalmologist before
July 1, 2000, to fit contact lenses prescribed by that optometrist or ophthalmologist;
(j)
he fits contact lenses for at least two years under the direct supervision of the
optometrist or ophthalmologist identified in Subsection
(3)(i)
before July 1, 2000, as
documented in the written agreement; and
(k)
the optometrist or ophthalmologist described in Subsection
(3)(i)
:
(i)
ensures that the final contact lens is accurate;
(ii)
presents a written copy of the prescription to the person fitting the contact lens;
and
(iii)
ensures that a copy of the prescription is provided to the patient, except as
provided in Section
58-16a-306
.
Section 178. Section
63G-2-305
is amended to read:
63G-2-305
Effective
05/06/26
. Protected records.
The following records are protected if properly classified by a governmental entity:
(1)
trade secrets as defined in Section
13-24-2
if the person submitting the trade secret has
provided the governmental entity with the information specified in Section
63G-2-309
;
(2)
commercial information or nonindividual financial information obtained from a person
if:
(a)
disclosure of the information could reasonably be expected to result in unfair
competitive injury to the person submitting the information or would impair the
ability of the governmental entity to obtain necessary information in the future;
(b)
the person submitting the information has a greater interest in prohibiting access than
the public in obtaining access; and
(c)
the person submitting the information has provided the governmental entity with the
information specified in Section
63G-2-309
;
(3)
commercial or financial information acquired or prepared by a governmental entity to
the extent that disclosure would lead to financial speculations in currencies, securities, or
commodities that will interfere with a planned transaction by the governmental entity or
cause substantial financial injury to the governmental entity or state economy;
(4)
records, the disclosure of which could cause commercial injury to, or confer a
competitive advantage upon a potential or actual competitor of, a commercial project
entity as defined in Subsection
11-13-103(4)
;
(5)
test questions and answers to be used in future license, certification, registration,
employment, or academic examinations;
(6)
records, the disclosure of which would impair governmental procurement proceedings
or give an unfair advantage to any person proposing to enter into a contract or agreement
with a governmental entity, except, subject to Subsections
(1)
and
(2)
, that this
Subsection
(6)
does not restrict the right of a person to have access to, after the contract
or grant has been awarded and signed by all parties:
(a)
a bid, proposal, application, or other information submitted to or by a governmental
entity in response to:
(i)
an invitation for bids;
(ii)
a request for proposals;
(iii)
a request for quotes;
(iv)
a grant; or
(v)
other similar document; or
(b)
an unsolicited proposal, as defined in Section
63G-6a-712
;
(7)
information submitted to or by a governmental entity in response to a request for
information, except, subject to Subsections
(1)
and
(2)
, that this Subsection
(7)
does not
restrict the right of a person to have access to the information, after:
(a)
a contract directly relating to the subject of the request for information has been
awarded and signed by all parties; or
(b)
(i)
a final determination is made not to enter into a contract that relates to the
subject of the request for information; and
(ii)
at least two years have passed after the day on which the request for information
is issued;
(8)
records that would identify real property or the appraisal or estimated value of real or
personal property, including intellectual property, under consideration for public
acquisition before any rights to the property are acquired unless:
(a)
public interest in obtaining access to the information is greater than or equal to the
governmental entity's need to acquire the property on the best terms possible;
(b)
the information has already been disclosed to persons not employed by or under a
duty of confidentiality to the entity;
(c)
in the case of records that would identify property, potential sellers of the described
property have already learned of the governmental entity's plans to acquire the
property;
(d)
in the case of records that would identify the appraisal or estimated value of
property, the potential sellers have already learned of the governmental entity's
estimated value of the property; or
(e)
the property under consideration for public acquisition is a single family residence
and the governmental entity seeking to acquire the property has initiated negotiations
to acquire the property as required under Section
78B-6-505
;
(9)
records prepared in contemplation of sale, exchange, lease, rental, or other compensated
transaction of real or personal property including intellectual property, which, if
disclosed prior to completion of the transaction, would reveal the appraisal or estimated
value of the subject property, unless:
(a)
the public interest in access is greater than or equal to the interests in restricting
access, including the governmental entity's interest in maximizing the financial
benefit of the transaction; or
(b)
when prepared by or on behalf of a governmental entity, appraisals or estimates of
the value of the subject property have already been disclosed to persons not
employed by or under a duty of confidentiality to the entity;
(10)
records created or maintained for civil, criminal, or administrative enforcement
purposes or audit purposes, or for discipline, licensing, certification, or registration
purposes, if release of the records:
(a)
reasonably could be expected to interfere with investigations undertaken for
enforcement, discipline, licensing, certification, or registration purposes;
(b)
reasonably could be expected to interfere with audits, disciplinary, or enforcement
proceedings;
(c)
would create a danger of depriving a person of a right to a fair trial or impartial
hearing;
(d)
reasonably could be expected to disclose the identity of a source who is not generally
known outside of government and, in the case of a record compiled in the course of
an investigation, disclose information furnished by a source not generally known
outside of government if disclosure would compromise the source; or
(e)
reasonably could be expected to disclose investigative or audit techniques,
procedures, policies, or orders not generally known outside of government if
disclosure would interfere with enforcement or audit efforts;
(11)
records the disclosure of which would jeopardize the life or safety of an individual;
(12)
records the disclosure of which would jeopardize the security of governmental
property, governmental programs, or governmental recordkeeping systems from
damage, theft, or other appropriation or use contrary to law or public policy;
(13)
records that, if disclosed, would jeopardize the security or safety of a correctional
facility, or records relating to incarceration, treatment, probation, or parole, that would
interfere with the control and supervision of an offender's incarceration, treatment,
probation, or parole;
(14)
records that, if disclosed, would reveal recommendations made to the Board of
Pardons and Parole by an employee of or contractor for the Department of Corrections,
the Board of Pardons and Parole, or the Department of Health and Human Services that
are based on the employee's or contractor's supervision, diagnosis, or treatment of any
person within the board's jurisdiction;
(15)
records and audit workpapers that identify audit, collection, and operational procedures
and methods used by the State Tax Commission, if disclosure would interfere with
audits or collections;
(16)
records of a governmental audit agency relating to an ongoing or planned audit until
the final audit is released;
(17)
records that are subject to the attorney client privilege;
(18)
records prepared for or by an attorney, consultant, surety, indemnitor, insurer,
employee, or agent of a governmental entity for, or in anticipation of, litigation or a
judicial, quasi-judicial, or administrative proceeding;
(19)
(a)
(i)
personal files of a state legislator, including personal correspondence to or
from a member of the Legislature; and
(ii)
notwithstanding Subsection
(19)(a)(i)
, correspondence that gives notice of
legislative action or policy may not be classified as protected under this section;
and
(b)
(i)
an internal communication that is part of the deliberative process in connection
with the preparation of legislation between:
(A)
members of a legislative body;
(B)
a member of a legislative body and a member of the legislative body's staff; or
(C)
members of a legislative body's staff; and
(ii)
notwithstanding Subsection
(19)(b)(i)
, a communication that gives notice of
legislative action or policy may not be classified as protected under this section;
(20)
(a)
records in the custody or control of the Office of Legislative Research and
General Counsel, that, if disclosed, would reveal a particular legislator's
contemplated legislation or contemplated course of action before the legislator has
elected to support the legislation or course of action, or made the legislation or course
of action public; and
(b)
notwithstanding Subsection
(20)(a)
, the form to request legislation submitted to the
Office of Legislative Research and General Counsel is a public document unless a
legislator asks that the records requesting the legislation be maintained as protected
records until such time as the legislator elects to make the legislation or course of
action public;
(21)
a research request from a legislator to a legislative staff member and research findings
prepared in response to the request;
(22)
drafts, unless otherwise classified as public;
(23)
records concerning a governmental entity's strategy about:
(a)
collective bargaining; or
(b)
imminent or pending litigation;
(24)
records of investigations of loss occurrences and analyses of loss occurrences that may
be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the
Uninsured Employers' Fund, or similar divisions in other governmental entities;
(25)
records, other than personnel evaluations, that contain a personal recommendation
concerning an individual if disclosure would constitute a clearly unwarranted invasion
of personal privacy, or disclosure is not in the public interest;
(26)
records that reveal the location of historic, prehistoric, paleontological, or biological
resources that if known would jeopardize the security of those resources or of valuable
historic, scientific, educational, or cultural information;
(27)
records of independent state agencies if the disclosure of the records would conflict
with the fiduciary obligations of the agency;
(28)
records of an institution of higher education defined in Section
53H-1-101
regarding
tenure evaluations, appointments, applications for admissions, retention decisions, and
promotions, which could be properly discussed in a meeting closed in accordance with
Title
52, Chapter 4
, Open and Public Meetings Act, provided that records of the final
decisions about tenure, appointments, retention, promotions, or those students admitted,
may not be classified as protected under this section;
(29)
records of the governor's office, including budget recommendations, legislative
proposals, and policy statements, that if disclosed would reveal the governor's
contemplated policies or contemplated courses of action before the governor has
implemented or rejected those policies or courses of action or made them public;
(30)
records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
revenue estimates, and fiscal notes of proposed legislation before issuance of the final
recommendations in these areas;
(31)
records provided by the United States or by a government entity outside the state that
are given to the governmental entity with a requirement that they be managed as
protected records if the providing entity certifies that the record would not be subject to
public disclosure if retained by it;
(32)
transcripts, minutes, recordings, or reports of the closed portion of a meeting of a
public body except as provided in Section
52-4-206
;
(33)
records that would reveal the contents of settlement negotiations but not including final
settlements or empirical data to the extent that they are not otherwise exempt from
disclosure;
(34)
memoranda prepared by staff and used in the decision-making process by an
administrative law judge, a member of the Board of Pardons and Parole, or a member of
any other body charged by law with performing a quasi-judicial function;
(35)
records that would reveal negotiations regarding assistance or incentives offered by or
requested from a governmental entity for the purpose of encouraging a person to expand
or locate a business in Utah, but only if disclosure would result in actual economic harm
to the person or place the governmental entity at a competitive disadvantage, but this
section may not be used to restrict access to a record evidencing a final contract;
(36)
materials to which access must be limited for purposes of securing or maintaining the
governmental entity's proprietary protection of intellectual property rights including
patents, copyrights, and trade secrets;
(37)
the name of a donor or a prospective donor to a governmental entity, including an
institution of higher education defined in Section
53H-1-101
, and other information
concerning the donation that could reasonably be expected to reveal the identity of the
donor, provided that:
(a)
the donor requests anonymity in writing;
(b)
any terms, conditions, restrictions, or privileges relating to the donation may not be
classified protected by the governmental entity under this Subsection
(37)
; and
(c)
except for an institution of higher education defined in Section
53H-1-101
, the
governmental unit to which the donation is made is primarily engaged in educational,
charitable, or artistic endeavors, and has no regulatory or legislative authority over
the donor, a member of the donor's immediate family, or any entity owned or
controlled by the donor or the donor's immediate family;
(38)
accident reports, except as provided in Sections
41-6a-404
,
41-12a-202
, and
73-18-13
;
(39)
a notification of workers' compensation insurance coverage described in Section
34A-2-205
;
(40)
subject to Subsections
(40)(g)
and
(h)
, the following records of an institution of higher
education defined in Section
53H-1-101
, which have been developed, discovered,
disclosed to, or received by or on behalf of faculty, staff, employees, or students of the
institution:
(a)
unpublished lecture notes;
(b)
unpublished notes, data, and information:
(i)
relating to research; and
(ii)
of:
(A)
the institution of higher education defined in Section
53H-1-101
; or
(B)
a sponsor of sponsored research;
(c)
unpublished manuscripts;
(d)
creative works in process;
(e)
scholarly correspondence;
and
(f)
confidential information contained in research proposals;
(g)
this Subsection
(40)
may not be construed to prohibit disclosure of public
information required
pursuant to
in accordance with
Subsection
53H-14-202(2)(a)
or (b); and
(h)
this Subsection
(40)
may not be construed to affect the ownership of a record;
(41)
(a)
records in the custody or control of the Office of the Legislative Auditor General
that would reveal the name of a particular legislator who requests a legislative audit
prior to the date that audit is completed and made public; and
(b)
notwithstanding Subsection
(41)(a)
, a request for a legislative audit submitted to the
Office of the Legislative Auditor General is a public document unless the legislator
asks that the records in the custody or control of the Office of the Legislative Auditor
General that would reveal the name of a particular legislator who requests a
legislative audit be maintained as protected records until the audit is completed and
made public;
(42)
records that provide detail as to the location of an explosive, including a map or other
document that indicates the location of:
(a)
a production facility; or
(b)
a magazine;
(43)
information contained in the statewide database of the Division of Aging and Adult
Services created by Section
26B-6-210
;
(44)
information contained in the Licensing Information System described in Title
80,
Chapter 2
, Child Welfare Services;
(45)
information regarding National Guard operations or activities in support of the
National Guard's federal mission;
(46)
records provided by any pawn or secondhand business to a law enforcement agency or
to the central database in compliance with Title
13, Chapter 32a
, Pawnshop, Secondhand
Merchandise, and Catalytic Converter Transaction Information Act;
(47)
information regarding food security, risk, and vulnerability assessments performed by
the Department of Agriculture and Food;
(48)
except to the extent that the record is exempt from this chapter
pursuant to
in
accordance with
Section
63G-2-106
, records related to an emergency plan or program, a
copy of which is provided to or prepared or maintained by the Division of Emergency
Management, and the disclosure of which would jeopardize:
(a)
the safety of the general public; or
(b)
the security of:
(i)
governmental property;
(ii)
governmental programs; or
(iii)
the property of a private person who provides the Division of Emergency
Management information;
(49)
records of the Department of Agriculture and Food that provides for the identification,
tracing, or control of livestock diseases, including any program established under Title
4, Chapter 24
, Utah Livestock Brand and Anti-Theft Act, or Title
4, Chapter 31
, Control
of Animal Disease;
(50)
as provided in Section
26B-2-709
:
(a)
information or records held by the Department of Health and Human Services related
to a complaint regarding a provider, program, or facility which the department is
unable to substantiate; and
(b)
information or records related to a complaint received by the Department of Health
and Human Services from an anonymous complainant regarding a provider, program,
or facility;
(51)
unless otherwise classified as public under Section
63G-2-301
and except as provided
under Section
41-1a-116
, an individual's home address, home telephone number, or
personal mobile phone number, if:
(a)
the individual is required to provide the information in order to comply with a law,
ordinance, rule, or order of a government entity; and
(b)
the subject of the record has a reasonable expectation that this information will be
kept confidential due to:
(i)
the nature of the law, ordinance, rule, or order; and
(ii)
the individual complying with the law, ordinance, rule, or order;
(52)
the portion of the following documents that contains a candidate's residential or
mailing address, if the candidate provides to the filing officer another address or phone
number where the candidate may be contacted:
(a)
a declaration of candidacy, a nomination petition, or a certificate of nomination,
described in Section
20A-9-201
,
20A-9-202
,
20A-9-203
,
20A-9-404
,
20A-9-405
,
20A-9-408
,
20A-9-408.5
,
20A-9-502
, or
20A-9-601
;
(b)
an affidavit of impecuniosity, described in Section
20A-9-201
; or
(c)
a notice of intent to gather signatures for candidacy, described in Section
20A-9-408
;
(53)
the name, home address, work addresses, and telephone numbers of an individual that
is engaged in, or that provides goods or services for, medical or scientific research that is:
(a)
conducted within the state system of higher education, as described in Section
53H-1-102
; and
(b)
conducted using animals;
(54)
in accordance with Section
78A-12-203
, any record of the Judicial Performance
Evaluation Commission concerning an individual commissioner's vote, in relation to
whether a judge meets or exceeds minimum performance standards under Subsection
78A-12-203(4)
, and information disclosed under Subsection
78A-12-203(5)(e)
;
(55)
information collected and a report prepared by the Judicial Performance Evaluation
Commission concerning a judge, unless Section
20A-7-702
or Title
78A, Chapter 12
,
Judicial Performance Evaluation Commission Act, requires disclosure of, or makes
public, the information or report;
(56)
records provided or received by the Public Lands Policy Coordinating Office in
furtherance of any contract or other agreement made in accordance with Section
63L-11-202
;
(57)
information requested by and provided to the 911 Division under Section
63H-7a-302
;
(58)
in accordance with Section
73-10-33
:
(a)
a management plan for a water conveyance facility in the possession of the Division
of Water Resources or the Board of Water Resources; or
(b)
an outline of an emergency response plan in possession of the state or a county or
municipality;
(59)
the following records in the custody or control of the Office of Inspector General of
Medicaid Services, created in Section
63A-13-201
:
(a)
records that would disclose information relating to allegations of personal
misconduct, gross mismanagement, or illegal activity of a person if the information
or allegation cannot be corroborated by the Office of Inspector General of Medicaid
Services through other documents or evidence, and the records relating to the
allegation are not relied upon by the Office of Inspector General of Medicaid
Services in preparing a final investigation report or final audit report;
(b)
records and audit workpapers to the extent they would disclose the identity of a
person who, during the course of an investigation or audit, communicated the
existence of any Medicaid fraud, waste, or abuse, or a violation or suspected
violation of a law, rule, or regulation adopted under the laws of this state, a political
subdivision of the state, or any recognized entity of the United States, if the
information was disclosed on the condition that the identity of the person be
protected;
(c)
before the time that an investigation or audit is completed and the final investigation
or final audit report is released, records or drafts circulated to a person who is not an
employee or head of a governmental entity for the person's response or information;
(d)
records that would disclose an outline or part of any investigation, audit survey plan,
or audit program; or
(e)
requests for an investigation or audit, if disclosure would risk circumvention of an
investigation or audit;
(60)
records that reveal methods used by the Office of Inspector General of Medicaid
Services, the fraud unit, or the Department of Health and Human Services, to discover
Medicaid fraud, waste, or abuse;
(61)
information provided to the Department of Health and Human Services or the Division
of Professional Licensing under Subsections
58-67-304(3)
and
(4)
and Subsections
58-68-304(3)
and
(4)
;
(62)
a record described in Section
63G-12-210
;
(63)
captured plate data that is obtained through an automatic license plate reader system
used by a governmental entity as authorized in Section
41-6a-2003
;
(64)
an audio or video recording created by a body-worn camera, as that term is defined in
Section
77-7a-103
, that records sound or images inside a hospital or health care facility
as those terms are defined in Section
78B-3-403
, inside a clinic of a health care provider,
as that term is defined in Section
78B-3-403
, or inside a human service program as that
term is defined in Section
26B-2-101
, except for recordings that:
(a)
depict the commission of an alleged crime;
(b)
record any encounter between a law enforcement officer and a person that results in
death or bodily injury, or includes an instance when an officer fires a weapon;
(c)
record any encounter that is the subject of a complaint or a legal proceeding against a
law enforcement officer or law enforcement agency;
(d)
contain an officer involved critical incident as defined in Subsection
76-2-408(1)(f)
;
or
(e)
have been requested for reclassification as a public record by a subject or authorized
agent of a subject featured in the recording;
(65)
a record pertaining to the search process for a president of an institution of higher
education described in Section
53H-3-302
;
(66)
an audio recording that is:
(a)
produced by an audio recording device that is used in conjunction with a device or
piece of equipment designed or intended for resuscitating an individual or for treating
an individual with a life-threatening condition;
(b)
produced during an emergency event when an individual employed to provide law
enforcement, fire protection, paramedic, emergency medical, or other first responder
service:
(i)
is responding to an individual needing resuscitation or with a life-threatening
condition; and
(ii)
uses a device or piece of equipment designed or intended for resuscitating an
individual or for treating an individual with a life-threatening condition; and
(c)
intended and used for purposes of training emergency responders how to improve
their response to an emergency situation;
(67)
records submitted by or prepared in relation to an applicant seeking a recommendation
by the Research and General Counsel Subcommittee, the Budget Subcommittee, or the
Legislative Audit Subcommittee, established under Section
36-12-8
, for an employment
position with the Legislature;
(68)
work papers as defined in Section
31A-2-204
;
(69)
a record made available to Adult Protective Services or a law enforcement agency
under Section
61-1-206
;
(70)
a record submitted to the Insurance Department in accordance with Section
31A-37-201
;
(71)
a record described in Section
31A-37-503
;
(72)
any record created by the Division of Professional Licensing as a result of Subsection
58-37f-304(5)
or
58-37f-702(2)(a)(ii)
;
(73)
a record described in Section
72-16-306
that relates to the reporting of an injury
involving an amusement ride;
(74)
except as provided in Subsection
63G-2-305.5(1)
, the signature of an individual on a
political petition, or on a request to withdraw a signature from a political petition,
including a petition or request described in the following titles:
(a)
Title
10, Utah Municipal Code
;
(b)
Title
17, Counties
;
(c)
Title
17B, Limited Purpose Local Government Entities - Special Districts
;
(d)
Title
17D, Limited Purpose Local Government Entities - Other Entities
; and
(e)
Title
20A, Election Code
;
(75)
except as provided in Subsection
63G-2-305.5(2)
, the signature of an individual in a
voter registration record;
(76)
except as provided in Subsection
63G-2-305.5(3)
, any signature, other than a signature
described in Subsection
(74)
or
(75)
, in the custody of the lieutenant governor or a local
political subdivision collected or held under, or in relation to, Title
20A, Election Code
;
(77)
a Form I-918 Supplement B certification as described in Title
77, Chapter 38, Part 5
,
Victims Guidelines for Prosecutors Act;
(78)
a record submitted to the Insurance Department under Section
31A-48-103
;
(79)
personal information, as defined in Section
63G-26-102
, to the extent disclosure is
prohibited under Section
63G-26-103
;
(80)
an image taken of an individual during the process of booking the individual into jail,
unless:
(a)
the individual is convicted of a criminal offense based upon the conduct for which
the individual was incarcerated at the time the image was taken;
(b)
a law enforcement agency releases or disseminates the image:
(i)
after determining that the individual is a fugitive or an imminent threat to an
individual or to public safety and releasing or disseminating the image will assist
in apprehending the individual or reducing or eliminating the threat; or
(ii)
to a potential witness or other individual with direct knowledge of events relevant
to a criminal investigation or criminal proceeding for the purpose of identifying or
locating an individual in connection with the criminal investigation or criminal
proceeding;
(c)
a judge orders the release or dissemination of the image based on a finding that the
release or dissemination is in furtherance of a legitimate law enforcement interest; or
(d)
the image is displayed to a person who is permitted to view the image under Section
17-72-802
;
(81)
a record:
(a)
concerning an interstate claim to the use of waters in the Colorado River system;
(b)
relating to a judicial proceeding, administrative proceeding, or negotiation with a
representative from another state or the federal government as provided in Section
63M-14-205
; and
(c)
the disclosure of which would:
(i)
reveal a legal strategy relating to the state's claim to the use of the water in the
Colorado River system;
(ii)
harm the ability of the Colorado River Authority of Utah or river commissioner to
negotiate the best terms and conditions regarding the use of water in the Colorado
River system; or
(iii)
give an advantage to another state or to the federal government in negotiations
regarding the use of water in the Colorado River system;
(82)
any part of an application described in Section
63N-16-201
that the Governor's Office
of Economic Opportunity determines is nonpublic, confidential information that if
disclosed would result in actual economic harm to the applicant, but this Subsection
(82)
may not be used to restrict access to a record evidencing a final contract or approval
decision;
(83)
the following records of a drinking water or wastewater facility:
(a)
an engineering or architectural drawing of the drinking water or wastewater facility;
and
(b)
except as provided in Section
63G-2-106
, a record detailing tools or processes the
drinking water or wastewater facility uses to secure, or prohibit access to, the records
described in Subsection
(83)(a)
;
(84)
a statement that an employee of a governmental entity provides to the governmental
entity as part of the governmental entity's personnel or administrative investigation into
potential misconduct involving the employee if the governmental entity:
(a)
requires the statement under threat of employment disciplinary action, including
possible termination of employment, for the employee's refusal to provide the
statement; and
(b)
provides the employee assurance that the statement cannot be used against the
employee in any criminal proceeding;
(85)
any part of an application for a Utah Fits All Scholarship account described in Section
53F-6-402
or other information identifying a scholarship student as defined in Section
53F-6-401
;
(86)
a record:
(a)
concerning a claim to the use of waters in the Great Salt Lake;
(b)
relating to a judicial proceeding, administrative proceeding, or negotiation with a
person concerning the claim, including a representative from another state or the
federal government; and
(c)
the disclosure of which would:
(i)
reveal a legal strategy relating to the state's claim to the use of the water in the
Great Salt Lake;
(ii)
harm the ability of the Great Salt Lake commissioner to negotiate the best terms
and conditions regarding the use of water in the Great Salt Lake; or
(iii)
give an advantage to another person including another state or to the federal
government in negotiations regarding the use of water in the Great Salt Lake;
(87)
a consumer complaint described in Section
13-2-11
13-2-112
, unless the consumer
complaint is reclassified as public as described in Subsection
13-2-11
(4)
13-2-112(3)
;
(88)
a record of the Utah water agent, appointed under Section
73-10g-702
:
(a)
concerning a claim to the use of waters;
(b)
relating to a judicial proceeding, administrative proceeding, or negotiation with a
representative from another state, a tribe, the federal government, or other
government entity as provided in
Title
73, Ch
apter
10g, Part 7, Utah Water Agent;
and
(c)
the disclosure of which would:
(i)
reveal a legal strategy relating to the state's claim to the use of the water;
(ii)
harm the ability of the Utah water agent to negotiate the best terms and conditions
regarding the use of water; or
(iii)
give an advantage to another state, a tribe, the federal government, or other
government entity in negotiations regarding the use of water; and
(89)
a record created or maintained for an investigation of the Prosecutor Conduct
Commission, created in Section
63M-7-1102
, that contains any personal identifying
information of a prosecuting attorney, including:
(a)
a complaint, or a document that is submitted or created for a complaint, received by
the Prosecutor Conduct Commission; or
(b)
a finding by the Prosecutor Conduct Commission.
Section 179. Section
63G-26-103
is amended to read:
63G-26-103
Effective
05/06/26
. Protection of personal information.
(1)
Except as provided in Subsections
(2)
, (3), and (4), a public agency may not:
(a)
require an individual who is a donor to a nonprofit entity to provide the public
agency with personal information or otherwise compel the release of personal
information;
(b)
require a nonprofit entity to provide the public agency with personal information or
compel the nonprofit entity to release personal information;
(c)
release, publicize, or otherwise publicly disclose personal information in possession
of a public agency; or
(d)
request or require a current or prospective contractor or grantee of the public agency
to provide the public agency with a list of nonprofit entities to which the current or
prospective contractor or grantee has provided financial or nonfinancial support.
(2)
Subsection
(1)
does not apply to:
(a)
a disclosure of personal information required under Title 20A, Election Code, or
Title 36, Chapter 11, Lobbyist Disclosure and Regulation Act;
(b)
the release of personal information by a public agency if the information is
voluntarily released to the public by the individual or nonprofit entity to which the
personal information relates, including:
(i)
as part of public comment or in a public meeting; or
(ii)
in another manner that is publicly accessible;
(c)
a disclosure of personal information
pursuant to
in accordance with
a lawful warrant
or court order issued by a court with jurisdiction;
(d)
a lawful request for discovery of personal information in litigation or a criminal
proceeding if the court with jurisdiction:
(i)
finds that the requestor demonstrates a compelling need for the personal
information by clear and convincing evidence; and
(ii)
issues a protective order barring disclosure of personal information to a person
not named in the litigation;
(e)
admission of personal information as relevant evidence before a court with
jurisdiction, except that a court may not publicly reveal personal information absent a
specific finding of good cause;
(f)
a nonprofit created under Title 11, Chapter 13a, Governmental Nonprofit
Corporations Act;
(g)
disclosure of personal information to the Department of Financial Institutions to
conduct regulatory oversight of federally insured depositories to comply with the
requirements of statute, rule, or regulation;
(h)
disclosure of personal information to the Insurance Department to conduct regulatory
oversight of persons licensed under Title 31A, Insurance Code, to comply with the
requirements of statute, rule, or regulation; or
(i)
disclosure of personal information that is required, requested, or released by the
following divisions of the Department of Commerce, provided that each division may
only use personal information in connection with the specific request to which the
personal information relates and for a related proceeding:
(i)
by the Division of Consumer Protection in accordance with the Division of
Consumer Protection's administration and enforcement of a chapter described in
Section
13-2-1
13-2-102
;
(ii)
by the Division of Corporations and Commercial Code in accordance with the
Division of Corporations and Commercial Code's authority under Title 13,
Chapter 1a, Division of Corporations and Commercial Code, and in the course of
the Division of Corporations and Commercial Code's administration of:
(A)
Title 3, Uniform Agricultural Cooperative Association Act;
(B)
Title 16, Corporations;
(C)
Title 42, Chapter 2, Conducting Business Under Assumed Name;
(D)
Title 48, Unincorporated Business Entity Act;
(E)
Title 70, Chapter 3a, Registration and Protection of Trademarks and Service
Marks Act; and
(F)
Title 70A, Chapter 9a, Uniform Commercial Code - Secured Transactions; and
(iii)
by the Division of Securities to conduct regulatory oversight of persons regulated
under Title 61, Chapter 1, Utah Uniform Securities Act, to comply with the
requirements of statute, rule, or regulation.
(3)
Subsections
(1)(a)
, (b), and (d) do not apply to:
(a)
the request or use of personal information necessary to the State Tax Commission's
administration of tax or motor vehicle laws, except that the State Tax Commission
may only use personal information in connection with the administration of tax or
motor vehicle laws or for a related proceeding; or
(b)
access to personal information by the Office of the Legislative Auditor General to
conduct an audit authorized under Utah Constitution, Article VI, Section 33, and
Section
36-12-15
, or the state auditor's office to conduct an audit authorized under
Title 67, Chapter 3, Auditor, except the legislative auditor general or state auditor
may only use the personal information in connection with the specific audit to which
the request relates.
(4)
Subsection
(1)
does not apply to disclosure of a contributor to a sponsoring
organization, as those terms are defined in Section
41-1a-1601
.
Section 180. Section
71A-4-101
is amended to read:
71A-4-101
Effective
05/06/26
. Definitions.
(1)
As used in this chapter:
(a)
"Accredited" means a veterans service organization, representative, agent, or attorney
to whom authority has been granted by the VA to provide assistance to claimants in
the preparation, presentation, and prosecution of claims for VA benefits.
(b)
"Assistance" means an act performed by a person on behalf of a claimant to:
(i)
provide claimant-specific recommendations for VA benefits; or
(ii)
prepare or submit an application for VA benefits on behalf of a claimant.
(c)
"Certify" means to submit in writing to a veteran or the veteran's dependents certain
disclosure forms provided by the department.
(d)
"Claimant" means an individual who has filed or has expressed to an accredited
person an intention to file a written application for determination of entitlement to
benefits provided under United States Code,
Title 38
, and implementing directives.
(e)
"Compensation" means payment of money, a thing of financial value, or a financial
benefit.
(f)
"Division" means the Division of Consumer Protection
created within the
Department of Commerce
established
in Section
13-2-1
13-2-102
.
(g)
"Non-compliant referral" means referring a veteran's or a veteran's dependent's
original claim for veteran benefits for assistance to a person who is in violation of the
provisions of this chapter.
(h)
"VA benefits" means any payment, service, commodity, function, or status
entitlement that is determined under laws administered by the VA pertaining to
veterans, dependents, and survivors, as well as other potential beneficiaries under
United States Code
Title 38
.
(i)
"Veteran" includes all eligible dependents.
(2)
Terms defined in Section
71A-1-101
apply to this chapter.
Section 181. Section
76-5c-401
is amended to read:
76-5c-401
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Consumer" means an individual residing in this state who subscribes to a service
provided by a service provider for personal or residential use.
(2)
"Content provider" means a person domiciled in Utah or that generates or hosts content
in Utah, and that creates, collects, acquires, or organizes electronic data for electronic
delivery to a consumer with the intent of making a profit.
(3)
"Division" means the Division of Consumer Protection established in Section
13-2-102
.
(3)
(4)
(a)
"Hosting company" means a person that provides services or facilities for
storing or distributing content over the Internet without editorial or creative alteration
of the content.
(b)
A hosting company may have policies concerning acceptable use without becoming
a content provider under Subsection
(2)
.
(4)
(5)
"Internet service provider" means a person engaged in the business of providing
broadband
Internet
internet
access service, with the intent of making a profit, to
consumers in Utah.
(5)
(6)
"Properly rated" means content using a labeling system to label material harmful to
minors provided by the content provider in a way that:
(a)
accurately apprises a consumer of the presence of material harmful to minors; and
(b)
allows the consumer the ability to control access to material harmful to minors based
on the material's rating by use of reasonably priced commercially available software,
including software in the public domain.
(6)
(7)
"Restrict" means to limit access to material harmful to minors by:
(a)
properly rating content; or
(b)
any other reasonable measures feasible under available technology.
(7)
(8)
(a)
"Service provider" means an
Internet
internet
service provider.
(b)
"Service provider" does not include a person who does not terminate a service in this
state, but merely transmits data through:
(i)
a wire;
(ii)
a cable; or
(iii)
an antenna.
(c)
"Service provider," notwithstanding Subsection
(7)(b)
(8)(b)
, includes a person who
leases or rents a wire or cable for the transmission of data.
Section 182. Section
76-5c-402
is amended to read:
76-5c-402
Effective
05/06/26
. Data service providers -- Internet content
harmful to minors.
(1)
(a)
Upon request by a consumer, a service provider shall filter content to prevent the
transmission of material harmful to minors to the consumer.
(b)
A service provider complies with Subsection
(1)(a)
if the service provider makes a
good faith effort to apply a generally accepted and commercially reasonable method
of filtering.
(c)
At the time of a consumer's subscription to a service provider's service, the service
provider shall notify the consumer in a conspicuous manner that the consumer may
request to have material harmful to minors blocked under Subsection
(1)(a)
.
(2)
The Division of Consumer Protection within the Department of Commerce
A service
provider
shall
:
,
(a)
every other year request from each service provider information on
no later than
July 1 of each even-numbered year, provide information to the division that describes
how the service provider complies with Subsection
(1)(a)
;
.
(b)
(3)
The division shall:
(a)
publish on the division's website a compilation of the information the division
receives under Subsection
(2)(a)
(2)
; and
(b)
update the compilation described in Subsection
(3)(a)
by July 1 of each
odd-numbered year.
(c)
update the compilation described in Subsection
(2)(b)
every other year.
(3)
(4)
(a)
A service provider may comply with Subsection
(1)(a)
by providing
in-network filtering to prevent the receipt of material harmful to minors, provided
that the filtering does not affect or interfere with access to
Internet
internet
content
for consumers who do not request filtering under Subsection
(1)(a)
.
(b)
A service provider may comply with Subsection
(1)(a)
by engaging a third party to
provide or referring a consumer to a third party that provides a commercially
reasonable method of filtering to block the receipt of material harmful to minors.
(c)
A service provider may charge a consumer a commercially reasonable fee for
providing filtering under this Subsection
(3)
(4)
.
(4)
(5)
If the attorney general determines that a service provider violates Subsection
(1)
,
the attorney general shall:
(a)
notify the service provider that the service provider is in violation of Subsection
(1)
;
and
(b)
notify the service provider that the service provider has 90 days to comply with the
provision being violated or be subject to the civil penalties described in Subsection
(5)
(6)
.
(5)
(6)
(a)
A service provider that intentionally or knowingly violates Subsection
(1)(a)
is subject to a civil fine of $2,500 for each separate violation of Subsection
(1)(a)
, up
to $15,000 per day.
(b)
A service provider that intentionally or knowingly violates Subsection
(1)(c)
is
subject to a civil fine up to $10,000.
(6)
(7)
A proceeding
Only the attorney general may bring an action
to impose a civil fine
under Subsection
(5)
may only be brought by the attorney general
(6)
.
Section 183. Section
78B-3-112
is amended to read:
78B-3-112
Effective
05/06/26
. Action for mistaken or fraudulent transaction on
a reversible blockchain.
(1)
As used in this section:
(a)
"Blockchain" means a digital ledger of transactions:
(i)
that is distributed across multiple nodes;
(ii)
that is mathematically verified; and
(iii)
where the validity of transactions is maintained by consensus of nodes.
(b)
"Blockchain administrator" means a person that is responsible for maintaining and
overseeing a blockchain.
(c)
"Division" means the Division of Consumer Protection created in Section
13-2-1
13-2-102
.
(d)
"Fraudulent transaction" means a transaction that a person undertakes with the intent
to deceive another person, including a transaction that involves:
(i)
false representation;
(ii)
omissions of material fact; or
(iii)
the use of a false or stolen identity.
(e)
"Node" means a computer connected to a blockchain.
(f)
"Proof of identity" means government-issued identification that contains the
following information:
(i)
a person's name;
(ii)
an individual's date of birth;
(iii)
a person's address, which is:
(A)
for an individual, a residential or business street address;
(B)
for an individual who does not have a residential or business street address, a
Post Office box number or the residential or business street address of next of
kin or of another contact individual; or
(C)
for a person other than an individual, the principal place of business; and
(iv)
an identification number, which is:
(A)
for a United States person, a taxpayer identification number; or
(B)
for a non-United States person, a taxpayer identification number, passport
number and country of issuance, alien identification card number, or the
number and country of issuance of any other government-issued document
evidencing nationality or residence and bearing a photograph or similar
safeguard.
(g)
"Reversible blockchain" means a blockchain that:
(i)
requires the blockchain's users to:
(A)
provide proof of identity to the blockchain administrator;
(B)
acknowledge and agree that all transactions occurring on the blockchain are
subject to reversal by a sheriff node; and
(C)
agree to be subject to jurisdiction of a court in Utah; and
(ii)
requires the blockchain administrator to:
(A)
verify a user's identity by checking the user's proof of identity against
government-issued identification databases; and
(B)
maintain records of a user's proof of identity for a minimum of five years.
(h)
"Sheriff node" means the same as that term is defined in Section
67-5-39
.
(i)
"Transaction" means the transfer of digital assets, rights, privileges, or obligations
from one person to another that occurs on a blockchain.
(j)
(i)
"User" means a person that interacts with a blockchain.
(ii)
"User" includes a person that is:
(A)
sending or receiving transactions;
(B)
accessing data stored on the blockchain;
(C)
participating in consensus or governance mechanisms;
(D)
running a node on the blockchain;
(E)
interacting with smart contracts or decentralized applications; or
(F)
holding or managing digital assets.
(2)
A plaintiff may bring a cause of action against a person to reverse:
(a)
a fraudulent transaction if:
(i)
the transaction occurred on a reversible blockchain;
(ii)
the plaintiff entered into the transaction with reasonable reliance on the person's:
(A)
fraudulent representation;
(B)
omission of material fact; or
(C)
use of a false or stolen identity; and
(iii)
the plaintiff was injured as a result of that reasonable reliance; or
(b)
a mistaken transaction if:
(i)
the transaction occurs on a reversible blockchain;
(ii)
the transaction resulted in a transfer of assets:
(A)
to the wrong recipient; or
(B)
in the wrong amount; and
(iii)
the recipient's refusal to return the assets resulted in the unjust enrichment of the
recipient.
(3)
Upon a finding of a mistaken or fraudulent transaction, the court shall issue an order to
the Office of the Attorney General to reverse the transaction in accordance with Section
67-5-39
.
Section 184.
Repealer.
Title.
Short title.
Short title.
Short title.
Title.
Short title.
Title.
Annual training.
Title.
Transitional provisions -- Application to existing transactions.
Title.
Requirement to submit to criminal background check.
Translations -- Prohibited acts.
Title.
Transportation Network Vehicle Recovery Fund -- Creation -- Report
to the Legislature.
Payment of a claim from the fund.
State not liable.
Title.
Title.
Title.
Requirement to submit to criminal background check.
Translations -- Prohibited acts.
Documents -- Treatment of original documents.
Section 185.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect May 6, 2026.
(2)
The actions affecting Section 13-2-102 (Effective 07/01/26) take effect on July 1, 2026.
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