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State2009 Statute Number 2009 Statute Language2010 Statute Number 2010 Statute Language

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Utah13-2-1. 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 5, Unfair Practices Act;
(b) Chapter 10a, Music Licensing Practices Act;
(c) Chapter 11, Utah Consumer Sales Practices Act;
(d) Chapter 15, Business Opportunity Disclosure Act;
(e) Chapter 20, New Motor Vehicles Warranties Act;
(f) Chapter 21, Credit Services Organizations Act;
(g) Chapter 22, Charitable Solicitations Act;
(h) Chapter 23, Health Spa Services Protection Act;
(i) Chapter 25a, Telephone and Facsimile Solicitation Act;
(j) Chapter 26, Telephone Fraud Prevention Act;
(k) Chapter 28, Prize Notices Regulation Act;
(l) Chapter 32a, Pawnshop Transaction Information Act;
(m) Chapter 34, Utah Postsecondary Proprietary School Act;
(n) Chapter 41, Price Controls During Emergencies Act; and
(o) Chapter 42, Uniform Debt-Management Services Act.
13-2-1. 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 5, Unfair Practices Act;
(b) Chapter 10a, Music Licensing Practices Act;
(c) Chapter 11, Utah Consumer Sales Practices Act;
(d) Chapter 15, Business Opportunity Disclosure Act;
(e) Chapter 20, New Motor Vehicles Warranties Act;
(f) Chapter 21, Credit Services Organizations Act;
(g) Chapter 22, Charitable Solicitations Act;
(h) Chapter 23, Health Spa Services Protection Act;
(i) Chapter 25a, Telephone and Facsimile Solicitation Act;
(j) Chapter 26, Telephone Fraud Prevention Act;
(k) Chapter 28, Prize Notices Regulation Act;
(l) Chapter 32a, Pawnshop Transaction Information Act;
(m) Chapter 34, Utah Postsecondary Proprietary School Act;
(n) Chapter 41, Price Controls During Emergencies Act; and
(o) Chapter 42, Uniform Debt-Management Services Act.

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13-2-2. Director of division -- Appointment.The division shall be under the supervision, direction, and control of a director. The director shall be appointed by the executive director of commerce with the approval of the governor. The director shall hold office at the pleasure of the governor. 13-2-2. Director of division -- Appointment.The division shall be under the supervision, direction, and control of a director. The director shall be appointed by the executive director of commerce with the approval of the governor. The director shall hold office at the pleasure of the governor.

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13-2-3. 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 Department of Administrative Services.
(2) The executive director shall establish the salary of the director according to standards established by the Department of Administrative Services.
(3) The director may employ specialists, technical experts, or investigators to participate or assist in investigations if they reasonably require expertise beyond that normally required for division personnel.
(4) An investigator employed pursuant to Subsection (3) may be designated a special function officer, as defined in Section 53-13-105, by the director, but is not eligible for retirement benefits under the Public Safety Employee's Retirement System.
13-2-3. 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 Department of Administrative Services.
(2) The executive director shall establish the salary of the director according to standards established by the Department of Administrative Services.
(3) The director may employ specialists, technical experts, or investigators to participate or assist in investigations if they reasonably require expertise beyond that normally required for division personnel.
(4) An investigator employed pursuant to Subsection (3) may be designated a special function officer, as defined in Section 53-13-105, by the director, but is not eligible for retirement benefits under the Public Safety Employee's Retirement System.

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13-2-4. Annual report -- Budget.(1) On or before the 1st day of October each year, the director in connection with the executive director shall report to the governor and the Legislature for the preceding fiscal year on the operations, activities, and goals of the division.
(2) The director shall prepare and submit to the executive director a budget of the administrative expenses for the division.
13-2-4. Annual report -- Budget.(1) On or before the 1st day of October 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.

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13-2-5. Powers of director.The director has authority to:
(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;
(2) investigate the activities of any business governed by the laws administered and enforced by the division;
(3) take administrative and judicial action against persons in violation of the division rules and the laws administered and enforced by it, 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 organization providing such services; and
(6) coordinate with, assist, and utilize the assistance of federal, state, and local agencies in the performance of the director's duties and the protection of the public.
13-2-5. Powers of director.The director has authority to:
(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;
(2) investigate the activities of any business governed by the laws administered and enforced by the division;
(3) take administrative and judicial action against persons in violation of the division rules and the laws administered and enforced by it, 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 organization providing such services; 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.

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13-2-6. Enforcement powers.(1) In accordance with Title 63G, Chapter 4, Administrative Procedures Act, the division shall have authority to convene administrative hearings, issue cease and desist orders, and impose fines under all the chapters identified in Section 13-2-1.
(2) Any person who 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) If the division has reasonable cause to believe that any person is engaged in violating any chapter listed in Section 13-2-1, 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 being violated;
(ii) state that any request for review of the citation shall be made in writing and be received by the division no more than 10 days following issuance;
(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 any time period prescribed by this section, the following days may not be included:
(i) the day a citation is issued by the division;
(ii) the day the division received a request for review of a citation;
(iii) Saturdays and Sundays; and
(iv) a legal holiday set forth in Subsection 63G-1-301(1)(a).
(c) If the recipient of a citation makes a timely request for review, within 10 days of receiving the request, the division shall convene an adjudicative proceeding in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(d) (i) If the presiding officer finds that there is not substantial evidence that the recipient violated a chapter listed in Section 13-2-1 at the time the citation was issued, the citation may not become final, and the division shall immediately vacate the citation and promptly notify the recipient in writing.
(ii) If the presiding officer finds there is substantial evidence that the recipient violated a chapter listed in Section 13-2-1 at the time the citation was issued, the citation shall become final and the division may enter a cease and desist order against the recipient.
(e) A citation issued under this chapter may be personally served upon any person upon whom a summons may be served in accordance with the Utah Rules of Civil Procedure. A citation also may be served by first-class mail, postage prepaid.
(f) If the recipient fails to make a timely request for review, the citation shall become the final order of the division. The period to contest the citation may be extended by the director for good cause shown.
(g) If the chapter violated allows for an administrative fine, after a citation becomes final, the director may impose the administrative fine.
(4) (a) A person violating a chapter identified in Section 13-2-1 is subject to the division's jurisdiction if:
(i) the violation or attempted violation is committed either wholly or partly within the state;
(ii) conduct committed outside the state constitutes an attempt to commit a violation

within the state; or
(iii) 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) any mail drop or mail box, whether or not located on the premises of a United States Post Office;
(ii) any telephone or facsimile transmission device;
(iii) any internet connection by a resident or inhabitant of this state with either a resident or nonresident maintained internet site;
(iv) any business office or private residence used for a business-related purpose;
(v) any account with or services of a financial institution;
(vi) the services of a common or private carrier; or
(vii) the use of any city, county, or state asset or facility, including any road or highway.
(5) The director or the director's designee, for the purposes outlined in any chapter administered by the division, may administer oaths, issue subpoenas, compel the attendance of witnesses, and compel the production of papers, books, accounts, documents, and evidence.
13-2-6. Enforcement powers.(1) In accordance with Title 63G, Chapter 4, Administrative Procedures Act, the division shall have authority to convene administrative hearings, issue cease and desist orders, and impose fines under all the chapters identified in Section 13-2-1.
(2) Any person who 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) If the division has reasonable cause to believe that any person is engaged in violating any chapter listed in Section 13-2-1, 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 being violated;
(ii) state that any request for review of the citation shall be made in writing and be received by the division no more than 10 days following issuance;
(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 any time period prescribed by this section, the following days may not be included:
(i) the day a citation is issued by the division;
(ii) the day the division received a request for review of a citation;
(iii) Saturdays and Sundays; and
(iv) a legal holiday set forth in Subsection 63G-1-301(1)(a).
(c) If the recipient of a citation makes a timely request for review, within 10 days of receiving the request, the division shall convene an adjudicative proceeding in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(d) (i) If the presiding officer finds that there is not substantial evidence that the recipient violated a chapter listed in Section 13-2-1 at the time the citation was issued, the citation may not become final, and the division shall immediately vacate the citation and promptly notify the recipient in writing.
(ii) If the presiding officer finds there is substantial evidence that the recipient violated a chapter listed in Section 13-2-1 at the time the citation was issued, the citation shall become final and the division may enter a cease and desist order against the recipient.
(e) A citation issued under this chapter may be personally served upon any person upon whom a summons may be served in accordance with the Utah Rules of Civil Procedure. A citation also may be served by first-class mail, postage prepaid.
(f) If the recipient fails to make a timely request for review, the citation shall become the final order of the division. The period to contest the citation may be extended by the director for good cause shown.
(g) If the chapter violated allows for an administrative fine, after a citation becomes final, the director may impose the administrative fine.
(4) (a) A person violating a chapter identified in Section 13-2-1 is subject to the division's jurisdiction if:
(i) the violation or attempted violation is committed either wholly or partly within the state;
(ii) conduct committed outside the state constitutes an attempt to commit a violation

within the state; or
(iii) 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) any mail drop or mail box, whether or not located on the premises of a United States Post Office;
(ii) any telephone or facsimile transmission device;
(iii) any internet connection by a resident or inhabitant of this state with either a resident or nonresident maintained internet site;
(iv) any business office or private residence used for a business-related purpose;
(v) any account with or services of a financial institution;
(vi) the services of a common or private carrier; or
(vii) the use of any city, county, or state asset or facility, including any road or highway.
(5) The director or the director's designee, for the purposes outlined in any chapter administered by the division, may administer oaths, issue subpoenas, compel the attendance of witnesses, and compel the production of papers, books, accounts, documents, and evidence.

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13-2-7. Violation of restraining or injunctive order -- Civil penalty.If any restraining order, any chapter administered by the division, or injunction granted under this chapter is violated, the division may submit a motion for, or the court on its own motion, may impose a civil penalty of not more than $2,000 for each day a temporary restraining order, preliminary injunction or permanent injunction issued under this chapter is violated, if the party has received notice of the restraining or injunctive order.13-2-7. Violation of restraining or injunctive order -- Civil penalty.If any restraining order, any chapter administered by the division, or injunction granted under this chapter is violated, the division may submit a motion for, or the court on its own motion, may impose a civil penalty of not more than $2,000 for each day a temporary restraining order, preliminary injunction or permanent injunction issued under this chapter is violated, if the party has received notice of the restraining or injunctive order.

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13-2-8. Consumer Protection Education and Training Fund.(1) There is created a restricted 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, all money not distributed as consumer restitution that is received by the division from administrative fines and settlements, from criminal restitution, or from civil damages, forfeitures, penalties, and settlements when the division receives the money on its own behalf and not in a representative capacity, shall be deposited into the fund.
(b) Any portion of the fund may be maintained in an interest-bearing account.
(c) All interest earned on fund money shall be deposited into the fund.
(3) Notwithstanding Title 63J, Chapter 1, Budgetary Procedures Act, the division may use the 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 exceeds $100,000 at the close of any fiscal year, the excess shall be transferred to the General Fund.
13-2-8. Consumer Protection Education and Training Fund.(1) There is created a restricted 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, all money not distributed as consumer restitution that is received by the division from administrative fines and settlements, from criminal restitution, or from civil damages, forfeitures, penalties, and settlements when the division receives the money on its own behalf and not in a representative capacity, shall be deposited into the fund.
(b) Any portion of the fund may be maintained in an interest-bearing account.
(c) All interest earned on fund money shall be deposited into the fund.
(3) Notwithstanding Title 63J, Chapter 1, Budgetary Procedures Act, the division may use the 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 exceeds $100,000 at the close of any fiscal year, the excess shall be transferred to the General Fund.

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13-2-9. 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 6, Utah Procurement Code
13-2-9. 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 6, Utah Procurement Code

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R152-1-1. Purposes, Policies and Rules of Construction.A. These rules are promulgated pursuant to Subsection 13-2-5(1) to assist the orderly administration of the statutes listed in Utah Code Section 13-2-1.

B.(1) These substantive rules are adopted by the Director of the Division of Consumer Protection pursuant to general authority of Utah Code Section 13-2-5, and specific authority of the following statutory sections:

(a) Utah Code Subsection 13-11-8(2);

(b) Utah Code Subsection 13-15-3(1); and

(c) Utah Code Section Section 13-16-12.

(2) Without limiting the scope of any statute or rule, this rule is intended to promote its stated purposes and policies. The purposes and policies of this rule are to:

(a) protect consumers from individuals and businesses who have engaged in and committed deceptive acts or practices, or have engaged in and committed unconscionable acts or practices.

(b) supply consumers with pertinent information on the nature of those individuals or businesses who may be engaging in and committing deceptive acts or practices, or may be engaging in and committing unconscionable acts or practices, so as to aid consumers in their decision making.

(c) encourage the development of fair consumer sales practices and wise decision making by consumers in all their consumer purchase decisions.
R152-1-1. Purposes, Policies and Rules of Construction.A. These rules are promulgated pursuant to Subsection 13-2-5(1) to assist the orderly administration of the statutes listed in Utah Code Section 13-2-1.

B.(1) These substantive rules are adopted by the Director of the Division of Consumer Protection pursuant to general authority of Utah Code Section 13-2-5, and specific authority of the following statutory sections:

(a) Utah Code Subsection 13-11-8(2);

(b) Utah Code Subsection 13-15-3(1); and

(c) Utah Code Section Section 13-16-12.

(2) Without limiting the scope of any statute or rule, this rule is intended to promote its stated purposes and policies. The purposes and policies of this rule are to:

(a) protect consumers from individuals and businesses who have engaged in and committed deceptive acts or practices, or have engaged in and committed unconscionable acts or practices.

(b) supply consumers with pertinent information on the nature of those individuals or businesses who may be engaging in and committing deceptive acts or practices, or may be engaging in and committing unconscionable acts or practices, so as to aid consumers in their decision making.

(c) encourage the development of fair consumer sales practices and wise decision making by consumers in all their consumer purchase decisions.

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R152-1-2. Definitions.A. For the purposes of this rule:

(1) "Buyer Beware List" means the list of individuals or business compiled by the Division in accordance with this rule.

(2) "Department" means the Utah Department of Commerce.

(3) "Director" means the director of the Utah Department of Commerce, Division of Consumer Protection.

(4) "Division" means the Utah Department of Commerce, Division of Consumer Protection.

(5) "Emergency" means facts known or presented to the Utah Department of Commerce, Division of Consumer Protection that show:

(a) an immediate and significant danger to the public health, safety, or welfare exists with respect to the statutes listed in Utah Code Section 13-2-1; and

(b) the threat requires immediate action by the Division.

(6) "Executive Director" means the executive director of the Utah Department of Commerce.

(7) "Order" means an order of adjudication or a final order by default issued by the Utah Department of Commerce, Division of Consumer Protection after proper notice and hearing, as applicable, in accordance with Utah Code Title 63G, Chapter 4, Administrative Procedures Act.
R152-1-2. Definitions.A. For the purposes of this rule:

(1) "Buyer Beware List" means the list of individuals or business compiled by the Division in accordance with this rule.

(2) "Department" means the Utah Department of Commerce.

(3) "Director" means the director of the Utah Department of Commerce, Division of Consumer Protection.

(4) "Division" means the Utah Department of Commerce, Division of Consumer Protection.

(5) "Emergency" means facts known or presented to the Utah Department of Commerce, Division of Consumer Protection that show:

(a) an immediate and significant danger to the public health, safety, or welfare exists with respect to the statutes listed in Utah Code Section 13-2-1; and

(b) the threat requires immediate action by the Division.

(6) "Executive Director" means the executive director of the Utah Department of Commerce.

(7) "Order" means an order of adjudication or a final order by default issued by the Utah Department of Commerce, Division of Consumer Protection after proper notice and hearing, as applicable, in accordance with Utah Code Title 63G, Chapter 4, Administrative Procedures Act.

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R152-1-3. Placement on "Buyer Beware List".A.(1) The Division shall place the name of an individual or business on the "Buyer Beware List" if the Division concludes through issuance of an order that the individual or business has violated any of the statutes listed in Utah Code Section 13-2-1.

(2) The Division shall provide fifteen (15) business days written notice by certified mail prior to placing an individual or business on the Buyer Beware List unless notice has otherwise been given by a previously issued Division subpoena or written inquiry or unless the Director finds that an emergency exists. All individuals and businesses placed on the Buyer Beware List shall be notified in writing of the reasons for the proposed inclusion on the list. They will also be advised of what actions, if any, they can take to remove their name from the list.

B. (1) When the Director finds the public interest would be served, the Division may place the name of an individual or business on the "Buyer Beware List" for:

(a) failure or refusal to respond to an administrative subpoena of the Division; or

(b) failure or refusal to respond to a consumer complaint on file with the Division alleging violation of one or more of the acts administered by the Division after the business or individual has received notification from the Division and had an opportunity to respond to the Division and address the complaint.

(2) Unclaimed, returned or refused certified mail properly addressed to the individual or business that is received back by the Division shall constitute proof of failure or refusal to respond.

C.(1) Prior to placement on the Buyer Beware List for any reason set forth in R152-1-3B the Division shall, upon receipt of a consumer complaint, make reasonable efforts to communicate with an individual or business identified in the complaint including:

(a) at least one (1) initial written notice by certified mail or facsimile transmission;

(b) at least one (1) initial telephone call; and

(c) if the individual or business identified in the complaint is a Utah resident at least one initial (1) face to face contact by a Division representative either at the Division's offices or at the individual's or business' Utah address.

(2)(a) If the initial efforts set forth at R152-1-3C(1) have proven unsuccessful the Division shall provide fifteen (15) business days written notice by certified mail prior to placing an individual or business on the Buyer Beware List unless:

(i) notice has otherwise been given by a previously issued Division subpoena or written inquiry properly addressed; or

(ii) the Director finds that an emergency exists.

(b) All individuals and businesses placed on the Buyer Beware List shall be notified in writing of the reasons for the proposed inclusion on the list. They will also be advised of what actions, if any, they can take to remove their name from the list.

D. Each listing on the Buyer Beware List shall contain a listing of the individual's or businesses:

(1) name(s), including "doing businesses as";

(2) address(es);

(3) phone number(s); and

(4) a detailed basis for the individual or business being placed on the list, including whether:

(a) an administrative fine has been assessed and if so what amount; and

(b) a cease and desist order has been issued in accordance with Utah Code Section 13-2-6(1).

E. The Buyer Beware List is a public document under Utah Code Title 63G, Chapter 2, Government Records Access and Management Act.
R152-1-3. Placement on "Buyer Beware List".A.(1) The Division shall place the name of an individual or business on the "Buyer Beware List" if the Division concludes through issuance of an order that the individual or business has violated any of the statutes listed in Utah Code Section 13-2-1.

(2) The Division shall provide fifteen (15) business days written notice by certified mail prior to placing an individual or business on the Buyer Beware List unless notice has otherwise been given by a previously issued Division subpoena or written inquiry or unless the Director finds that an emergency exists. All individuals and businesses placed on the Buyer Beware List shall be notified in writing of the reasons for the proposed inclusion on the list. They will also be advised of what actions, if any, they can take to remove their name from the list.

B. (1) When the Director finds the public interest would be served, the Division may place the name of an individual or business on the "Buyer Beware List" for:

(a) failure or refusal to respond to an administrative subpoena of the Division; or

(b) failure or refusal to respond to a consumer complaint on file with the Division alleging violation of one or more of the acts administered by the Division after the business or individual has received notification from the Division and had an opportunity to respond to the Division and address the complaint.

(2) Unclaimed, returned or refused certified mail properly addressed to the individual or business that is received back by the Division shall constitute proof of failure or refusal to respond.

C.(1) Prior to placement on the Buyer Beware List for any reason set forth in R152-1-3B the Division shall, upon receipt of a consumer complaint, make reasonable efforts to communicate with an individual or business identified in the complaint including:

(a) at least one (1) initial written notice by certified mail or facsimile transmission;

(b) at least one (1) initial telephone call; and

(c) if the individual or business identified in the complaint is a Utah resident at least one initial (1) face to face contact by a Division representative either at the Division's offices or at the individual's or business' Utah address.

(2)(a) If the initial efforts set forth at R152-1-3C(1) have proven unsuccessful the Division shall provide fifteen (15) business days written notice by certified mail prior to placing an individual or business on the Buyer Beware List unless:

(i) notice has otherwise been given by a previously issued Division subpoena or written inquiry properly addressed; or

(ii) the Director finds that an emergency exists.

(b) All individuals and businesses placed on the Buyer Beware List shall be notified in writing of the reasons for the proposed inclusion on the list. They will also be advised of what actions, if any, they can take to remove their name from the list.

D. Each listing on the Buyer Beware List shall contain a listing of the individual's or businesses:

(1) name(s), including "doing businesses as";

(2) address(es);

(3) phone number(s); and

(4) a detailed basis for the individual or business being placed on the list, including whether:

(a) an administrative fine has been assessed and if so what amount; and

(b) a cease and desist order has been issued in accordance with Utah Code Section 13-2-6(1).

E. The Buyer Beware List is a public document under Utah Code Title 63G, Chapter 2, Government Records Access and Management Act.

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R152-1-4. Removal from "Buyer Beware List".A. The Division of Consumer Protection shall remove the name of the business or individual from the Buyer Beware List if:

(1) the individual or business:

(a) has had no other complaints with respect to a statute listed in Utah Code Section 13-2-1 for a period of 90 consecutive days after being placed on the list; and

(b) otherwise complies with all aspects of the order entered against the individual or business, including the payment of any administrative fines assessed;

(2) pursuant to R152-1-3B(1)(a), when a sufficient response is provided to an outstanding Division subpoena; or

(3) pursuant to R152-1-3B(1)(b), when a satisfactory response is made to outstanding Division inquiries to which the individual or business previously failed or refused to respond.
R152-1-4. Removal from "Buyer Beware List".A. The Division of Consumer Protection shall remove the name of the business or individual from the Buyer Beware List if:

(1) the individual or business:

(a) has had no other complaints with respect to a statute listed in Utah Code Section 13-2-1 for a period of 90 consecutive days after being placed on the list; and

(b) otherwise complies with all aspects of the order entered against the individual or business, including the payment of any administrative fines assessed;

(2) pursuant to R152-1-3B(1)(a), when a sufficient response is provided to an outstanding Division subpoena; or

(3) pursuant to R152-1-3B(1)(b), when a satisfactory response is made to outstanding Division inquiries to which the individual or business previously failed or refused to respond.

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13-15-1. Short title.This act shall be known and may be cited as the "Business Opportunity Disclosure Act." 13-15-1. Short title.This act shall be known and may be cited as the "Business Opportunity Disclosure Act."

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13-15-2. Definitions.As used in this chapter:
(1) (a) "Assisted marketing plan" means the sale or lease of any products, equipment, supplies, or services that are sold to the purchaser upon payment of an initial required consideration of $300 or more for the purpose of enabling the purchaser to start a business, and in which the seller represents:
(i) that the seller will provide locations or assist the purchaser in finding locations for the use or operation of vending machines, racks, display cases, or other similar devices, or currency operated amusement machines or devices, on premises neither owned nor leased by the purchaser or seller;
(ii) that the seller will purchase any or all products made, produced, fabricated, grown, or modified by the purchaser, using in whole or in part the supplies, services, or chattels sold to the purchaser;
(iii) that the seller will provide the purchaser with a guarantee that the purchaser will receive income from the assisted marketing plan that exceeds the price paid for the assisted marketing plan, or repurchase any of the products, equipment, supplies, or chattels supplied by the seller if the purchaser is dissatisfied with the assisted marketing plan; or
(iv) that upon payment by the purchaser of a fee or sum of money, which exceeds $300 to the seller, the seller will provide a sales program or marketing program that will enable the purchaser to derive income from the assisted marketing plan that exceeds the price paid for the marketing plan.
(b) "Assisted marketing plan" does not include:
(i) the sale of an ongoing business when the owner of that business sells and intends to sell only that one assisted marketing plan;
(ii) not-for-profit sale of sales demonstration equipment, materials, or samples for a total price of $300 or less; or
(iii) the sale of a package franchise or a product franchise defined by and in compliance with Federal Trade Commission rules governing franchise and business opportunity ventures.
(c) As used in Subsection (1)(a)(iii) "guarantee" means a written agreement, signed by the purchaser and seller, disclosing the complete details and any limitations or exceptions of the agreement.
(2) "Business opportunity" means an assisted marketing plan subject to this chapter.
(3) "Division" means the Division of Consumer Protection of the Department of Commerce.
(4) (a) "Initial required consideration" means the total amount a purchaser is obligated to pay under the terms of the assisted marketing plan, either prior to or at the time of delivery of the products, equipment, supplies, or services, or within six months of the commencement of operation of the assisted marketing plan by the purchaser. If payment is over a period of time, "initial required consideration" means the sum of the down payment and the total monthly payments.
(b) "Initial required consideration" does not mean the not-for-profit sale of sales demonstration equipment, materials, or supplies for a total price of less than $300.
(5) "Person" means any natural person, corporation, partnership, organization, association, trust, or any other legal entity.
(6) "Purchaser" means a person who becomes obligated to pay for an assisted marketing

plan.
(7) "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.
(8) "Seller" means a person who sells or offers to sell an assisted marketing plan.
As used in this chapter:
(1) (a) "Assisted marketing plan" means the sale or lease of any products, equipment, supplies, or services that are sold to the purchaser upon payment of an initial required consideration of $300 or more for the purpose of enabling the purchaser to start a business, and in which the seller represents:
(i) that the seller will provide locations or assist the purchaser in finding locations for the use or operation of vending machines, racks, display cases, or other similar devices, or currency operated amusement machines or devices, on premises neither owned nor leased by the purchaser or seller;
(ii) that the seller will purchase any or all products made, produced, fabricated, grown, or modified by the purchaser, using in whole or in part the supplies, services, or chattels sold to the purchaser;
(iii) that the seller will provide the purchaser with a guarantee that the purchaser will receive income from the assisted marketing plan that exceeds the price paid for the assisted marketing plan, or repurchase any of the products, equipment, supplies, or chattels supplied by the seller if the purchaser is dissatisfied with the assisted marketing plan; or
(iv) that upon payment by the purchaser of a fee or sum of money, which exceeds $300 to the seller, the seller will provide a sales program or marketing program that will enable the purchaser to derive income from the assisted marketing plan that exceeds the price paid for the marketing plan.
(b) "Assisted marketing plan" does not include:
(i) the sale of an ongoing business when the owner of that business sells and intends to sell only that one assisted marketing plan;
(ii) not-for-profit sale of sales demonstration equipment, materials, or samples for a total price of $300 or less; or
(iii) the sale of a package franchise or a product franchise defined by and in compliance with Federal Trade Commission rules governing franchise and business opportunity ventures.
(c) As used in Subsection (1)(a)(iii) "guarantee" means a written agreement, signed by the purchaser and seller, disclosing the complete details and any limitations or exceptions of the agreement.
(2) "Business opportunity" means an assisted marketing plan subject to this chapter.
(3) "Division" means the Division of Consumer Protection of the Department of Commerce.
(4) (a) "Initial required consideration" means the total amount a purchaser is obligated to pay under the terms of the assisted marketing plan, either prior to or at the time of delivery of the products, equipment, supplies, or services, or within six months of the commencement of operation of the assisted marketing plan by the purchaser. If payment is over a period of time, "initial required consideration" means the sum of the down payment and the total monthly payments.
(b) "Initial required consideration" does not mean the not-for-profit sale of sales demonstration equipment, materials, or supplies for a total price of less than $300.
(5) "Person" means any natural person, corporation, partnership, organization, association, trust, or any other legal entity.
(6) "Purchaser" means a person who becomes obligated to pay for an assisted marketing

plan.
(7) "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.
(8) "Seller" means a person who sells or offers to sell an assisted marketing plan.

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13-15-3. Administration and enforcement -- Powers -- Legal counsel -- Fees. (1) The division shall administer and enforce this chapter. In the exercise of its responsibilities, the division shall enjoy the powers, and be subject to the constraints, set forth in 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) All fees collected under this chapter shall be deposited in the Commerce Service Account created by Section 13-1-2.

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13-15-4. Information to be filed by seller -- Representations.13-15-4. Information to be filed by seller -- Representations. (1) Any seller of an assisted marketing plan shall file the following information with the division:
(a) the name, address, and principal place of business of the seller, and the name, address, and principal place of business of the parent or holding company of the seller, if any, who is responsible for statements made by the seller;
(b) all trademarks, trade names, service marks, or advertising or other commercial symbols that identify the products, equipment, supplies, or services to be offered, sold, or distributed by the prospective purchaser;
(c) an individual detailed statement covering the past five years of the business experience of each of the seller's current directors and executive officers and an individual statement covering the same period for the seller and the seller's parent company, if any, including the length of time each:
(i) has conducted a business of the type advertised or solicited for operation by a prospective purchaser;
(ii) has offered or sold the assisted marketing plan; and
(iii) has offered for sale or sold assisted marketing plans in other lines of business, together with a description of the other lines of business;
(d) a statement of the total amount that shall be paid by the purchaser to obtain or commence the business opportunity such as initial fees, deposits, down payments, prepaid rent, and equipment and inventory purchases; provided, that if all or part of these fees or deposits are returnable, the conditions under which they are returnable shall also be disclosed;
(e) a complete statement of the actual services the seller will perform for the purchaser;
(f) a complete statement of all oral, written, or visual representations that will be made to prospective purchasers about specific levels of potential sales, income, gross and net profits, or any other representations that suggest a specific level;
(g) a complete description of the type and length of any training promised to prospective purchasers;
(h) a complete description of any services promised to be performed by the seller in connection with the placement of the equipment, products, or supplies at any location from which they will be sold or used; and a complete description of those services together with any agreements that will be made by the seller with the owner or manager of the location where the purchaser's equipment, products, or supplies will be placed;
(i) a statement that discloses any person identified in Subsection (1)(a) who:
(i) has been convicted of a felony or misdemeanor or pleaded nolo contendere to a felony or misdemeanor charge if the felony or misdemeanor involved fraud, embezzlement, fraudulent conversion, or misappropriation of property;
(ii) has been held liable or consented to the entry of a stipulated judgment in any civil action based upon fraud, embezzlement, fraudulent conversion, misappropriation of property, or the use of untrue or misleading representations in the sale or attempted sale of any real or personal property, or upon the use of any unfair, unlawful or deceptive business practice; or
(iii) is subject to an injunction or restrictive order relating to business activity as the result of an action brought by a public agency;
(j) a financial statement of the seller signed by one of the seller's officers, directors, trustees, or general or limited partners, under a declaration that certifies that to the signatory's

knowledge and belief the information in the financial statement is true and accurate; a financial statement that is more than 13 months old is unacceptable;
(k) a copy of the entire marketing plan contract;
(l) the number of marketing plans sold to date, and the number of plans under negotiation;
(m) geographical information including all states in which the seller's assisted marketing plans have been sold, and the number of plans in each such state;
(n) the total number of marketing plans that were cancelled by the seller in the past 12 months; and
(o) the number of marketing plans that were voluntarily terminated by purchasers within the past 12 months and the total number of such voluntary terminations to date.
(2) The seller of an assisted marketing plan filing information under Subsection (1) shall pay a fee as determined by the department in accordance with Section 63J-1-504.
(3) Before commencing business in this state, the seller of an assisted marketing plan shall file the information required under Subsection (1) and receive from the division proof of receipt of the filing.
(4) A seller of an assisted marketing plan claiming an exemption from filing under this chapter shall file a notice of claim of exemption from filing with the division. A seller claiming an exemption from filing bears the burden of proving the exemption. The division shall collect a fee for filing a notice of claim of exemption, as determined by the department in accordance with Section 63J-1-504.
(5) A representation described in Subsection (1)(f) shall be relevant to the geographic market in which the business opportunity is to be located. When the statements or representations are made, a warning after the representation in not less than 12 point upper and lower case boldface type shall appear as follows:
CAUTION

No guarantee of earnings or ranges of earnings can be made. The number of purchasers who have earned through this business an amount in excess of the amount of their initial payment is at least _____ which represents _____% of the total number of purchasers of this business opportunity.

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13-15-4.5. Notice of exemption filing.(1) (a) Any franchise exempt from this chapter pursuant to Subsection 13-15-2(1)(b)(iii) shall, prior to offering for sale or selling a franchise to be located in this state or to a resident of this state, file with the division a notice that 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 and Business Opportunity Ventures, together with a filing fee determined by the department pursuant to Section 63J-1-504, not to exceed $100.
(b) The notice shall state:
(i) the name of the applicant;
(ii) the name of the franchise;
(iii) the name under which the applicant intends to or does transact business, if different than the name of the franchise;
(iv) the applicant's principal business address; and
(v) the applicant's federal employer identification number.
(2) (a) The initial exemption granted under this section is for a period of one year from the date of filing the notice.
(b) The exemption may be renewed each year for an additional one-year period upon filing a notice for renewal and paying a renewal fee determined pursuant to Section 63J-1-504, not to exceed $100.
(3) The division may make rules to implement this section.
13-15-4.5. Notice of exemption filing.(1) (a) Any franchise exempt from this chapter pursuant to Subsection 13-15-2(1)(b)(iii) shall, prior to offering for sale or selling a franchise to be located in this state or to a resident of this state, file with the division a notice that 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 and Business Opportunity Ventures, together with a filing fee determined by the department pursuant to Section 63J-1-504, not to exceed $100.
(b) The notice shall state:
(i) the name of the applicant;
(ii) the name of the franchise;
(iii) the name under which the applicant intends to or does transact business, if different than the name of the franchise;
(iv) the applicant's principal business address; and
(v) the applicant's federal employer identification number.
(2) (a) The initial exemption granted under this section is for a period of one year from the date of filing the notice.
(b) The exemption may be renewed each year for an additional one-year period upon filing a notice for renewal and paying a renewal fee determined pursuant to Section 63J-1-504, not to exceed $100.
(3) The division may make rules to implement this section.

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13-15-5. Disclosure statement furnished to buyer -- Contents.All the information required under Section 13-15-4 shall be contained in a single disclosure statement or prospectus which shall be provided to any prospective purchaser at least 10 business days prior to the earlier of:
(1) the execution by prospective purchaser of any agreement imposing a binding legal obligation on such prospective purchaser by which the seller knows or should know, in connection with the sale or proposed sale of the "assisted marketing plan"; or
(2) the payment by a prospective purchaser, by which the seller knows or should know of any consideration in connection with the sale or proposed sale of the "assisted market plan." The disclosure statement or prospectus may not contain any material or information other than that required under Section 13-15-4. However, the seller may give prospective purchasers nondeceptive information other than that contained in the disclosure statement or prospectus if it does not contradict the information required to appear in the disclosure statement or prospectus. A cover sheet attached to the disclosure statement or prospectus shall conspicuously state the name of the seller, the date of issuance of the disclosure statement or prospectus, and a notice printed in not less than 12 point upper and lower case boldface type as follows:
INFORMATION FOR PURCHASE OF A MARKETING PLAN:

To protect you, the State Division of Consumer Protection has required your seller to give you this information. The State Division of Consumer Protection has not verified this information as to its accuracy. The notice may contain additional precautions deemed necessary and pertinent. The seller, in lieu of the information requested by Section 13-15-4, may file with the commission and provide to prospective purchasers certified disclosure documents authorized for use by the Federal Trade Commission pursuant to Title 16, Chapter I, Subchapter d, Trade Regulation Rules, Part 436, "Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures."
13-15-5. Disclosure statement furnished to buyer -- Contents.All the information required under Section 13-15-4 shall be contained in a single disclosure statement or prospectus which shall be provided to any prospective purchaser at least 10 business days prior to the earlier of:
(1) the execution by prospective purchaser of any agreement imposing a binding legal obligation on such prospective purchaser by which the seller knows or should know, in connection with the sale or proposed sale of the "assisted marketing plan"; or
(2) the payment by a prospective purchaser, by which the seller knows or should know of any consideration in connection with the sale or proposed sale of the "assisted market plan." The disclosure statement or prospectus may not contain any material or information other than that required under Section 13-15-4. However, the seller may give prospective purchasers nondeceptive information other than that contained in the disclosure statement or prospectus if it does not contradict the information required to appear in the disclosure statement or prospectus. A cover sheet attached to the disclosure statement or prospectus shall conspicuously state the name of the seller, the date of issuance of the disclosure statement or prospectus, and a notice printed in not less than 12 point upper and lower case boldface type as follows:
INFORMATION FOR PURCHASE OF A MARKETING PLAN:

To protect you, the State Division of Consumer Protection has required your seller to give you this information. The State Division of Consumer Protection has not verified this information as to its accuracy. The notice may contain additional precautions deemed necessary and pertinent. The seller, in lieu of the information requested by Section 13-15-4, may file with the commission and provide to prospective purchasers certified disclosure documents authorized for use by the Federal Trade Commission pursuant to Title 16, Chapter I, Subchapter d, Trade Regulation Rules, Part 436, "Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures."

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13-15-6. Failure to file disclosures -- Relief where seller fails to comply with chapter -- Relief where division granted judgment or injunction -- Administrative fines.(1) If a seller fails to file the disclosures required under Section 13-15-4, or fails after demand by the division to file the disclosure within 15 days, the division, consistent with Section 13-2-5, shall begin adjudicative proceedings and shall issue a cease and desist order.
(2) Any purchaser of a business opportunity from a seller who does not comply with this chapter is entitled, in an appropriate court of competent jurisdiction, to rescission of the contract, to an award of a reasonable attorney's fee and costs of court in an action to enforce the right of rescission, and to the amount of actual damages or $2,000, whichever is greater.
(3) In the event the division is granted judgment or injunctive relief in an appropriate court of competent jurisdiction, the division, in addition to any other relief, is entitled to an award of reasonable attorney's fees, costs of court, and investigative fees.
(4) (a) In addition to other penalties under this chapter, and to its other enforcement powers under Title 13, Chapter 2, Division of Consumer Protection, the division director may impose an administrative fine of up to $2,500 for each violation of this chapter.
(b) All money received through administrative fines imposed under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.
13-15-6. Failure to file disclosures -- Relief where seller fails to comply with chapter -- Relief where division granted judgment or injunction -- Administrative fines.(1) If a seller fails to file the disclosures required under Section 13-15-4, or fails after demand by the division to file the disclosure within 15 days, the division, consistent with Section 13-2-5, shall begin adjudicative proceedings and shall issue a cease and desist order.
(2) Any purchaser of a business opportunity from a seller who does not comply with this chapter is entitled, in an appropriate court of competent jurisdiction, to rescission of the contract, to an award of a reasonable attorney's fee and costs of court in an action to enforce the right of rescission, and to the amount of actual damages or $2,000, whichever is greater.
(3) In the event the division is granted judgment or injunctive relief in an appropriate court of competent jurisdiction, the division, in addition to any other relief, is entitled to an award of reasonable attorney's fees, costs of court, and investigative fees.
(4) (a) In addition to other penalties under this chapter, and to its other enforcement powers under Title 13, Chapter 2, Division of Consumer Protection, the division director may impose an administrative fine of up to $2,500 for each violation of this chapter.
(b) All money received through administrative fines imposed under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.

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13-15-7. Civil penalty for violation of cease and desist order.Any person who violates any cease and desist order issued under this chapter is subject to a civil penalty not to exceed $5,000 for each violation. Civil penalties authorized by this chapter may be imposed in any civil action brought by the attorney general or by a county attorney under this section. All penalties received shall be deposited in the Consumer Protection Education and Training Fund created in Section 13-2-8. No action to collect a civil penalty may be commenced more than five years after the date the penalty was imposed. 13-15-7. Civil penalty for violation of cease and desist order.Any person who violates any cease and desist order issued under this chapter is subject to a civil penalty not to exceed $5,000 for each violation. Civil penalties authorized by this chapter may be imposed in any civil action brought by the attorney general or by a county attorney under this section. All penalties received shall be deposited in the Consumer Protection Education and Training Fund created in Section 13-2-8. No action to collect a civil penalty may be commenced more than five years after the date the penalty was imposed.

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13-22-1. Short title.This chapter is known as the "Charitable Solicitations Act." 13-22-1. Short title.This chapter is known as the "Charitable Solicitations Act."

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13-22-2. Definitions.As used in this chapter:
(1) (a) "Charitable organization" or "organization" means any person, joint venture, partnership, limited liability company, corporation, association, group, or other entity:
(i) that is or holds itself out 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 solicitation or employs an appeal that reasonably suggests or implies that there is a charitable purpose to any solicitation.
(b) "Charitable organization" includes a "chapter," "branch," "area," "office," or similar "affiliate" or any person soliciting contributions within the state for a charitable organization that has its principal place of business outside the state.
(2) "Charitable purpose" means any benevolent, educational, philanthropic, humane, patriotic, religious, eleemosynary, social welfare or advocacy, public health, environmental, conservation, civic, or other charitable objective or for the benefit of a public safety, law enforcement, or firefighter fraternal association.
(3) "Charitable solicitation" or "solicitation" means any request, directly or indirectly, for money, credit, property, financial assistance, or any other thing of value on the plea or representation that it will be used for a charitable purpose. A charitable solicitation may be made in any manner, including:
(a) any oral or written request, including any request by telephone, radio or television, or other advertising or communications media;
(b) the distribution, circulation, or posting of any handbill, written advertisement, or publication; or
(c) the sale of, offer or attempt to sell, or request of donations in exchange for any advertisement, book, card, chance, coupon, device, magazine, membership, merchandise, subscription, ticket, flower, flag, button, sticker, ribbon, token, trinket, tag, souvenir, candy, or any other article in connection with which any appeal is made for any charitable purpose, or the use of the name of any charitable organization or movement as an inducement or reason for making any purchase donation, or, in connection with any sale or donation, stating or implying that the whole or any part of the proceeds of any sale or donation will go to or be donated to any charitable purpose.
(4) "Charitable sales promotion" means an advertising or sales campaign, conducted by a commercial co-venturer, which represents that the purchase or use of goods or services offered by the commercial co-venturer will benefit, in whole or in part, a charitable organization or purpose.
(5) "Commercial co-venturer" means a person who for profit is regularly and primarily engaged in trade or commerce other than in connection with soliciting for charitable organizations or purposes.
(6) (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; and
(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 to a charitable organization by a financial institution in the ordinary course of business; or
(ii) fees, dues, or assessments paid by members when membership is not conferred solely as consideration for making a contribution.
(7) "Contributor" means any donor, pledgor, purchaser, or other person who makes a contribution.
(8) "Director" means the director of the Division of Consumer Protection.
(9) "Division" means the Division of Consumer Protection of the Department of Commerce.
(10) "Material fact" means information that a person of ordinary intelligence and prudence would consider relevant in deciding whether or not to make a contribution in response to a charitable solicitation.
(11) (a) "Professional fund raiser," except as provided in Subsection (11)(b), means any person who:
(i) for compensation or any other consideration solicits contributions for charitable purposes, or plans or manages the solicitation of contributions for or on behalf of any charitable organization or any other person;
(ii) engages in, or who holds himself out to persons in this state as being independently engaged in, the business of soliciting contributions for a charitable organization;
(iii) manages, supervises, or trains any solicitor whether as an employee or otherwise; or
(iv) uses a vending device or vending device decal for financial or other consideration that implies a solicitation of contributions or donations for any charitable organization or charitable purposes.
(b) "Professional fund raiser" does not include a bona fide officer, director, volunteer, or full-time employee of a charitable organization.
(12) (a) "Professional fund raising counsel or consultant" or other comparable designation or title means a person who:
(i) for compensation plans, manages, advises, counsels, consults, or prepares material for, or with respect to, the solicitation in this state of contributions for a charitable organization, whether or not at any time the person has custody of contributions from a solicitation;
(ii) does not solicit contributions; and
(iii) does not employ, procure, or engage any compensated person to solicit or receive contributions.
(b) "Professional fund raising counsel or consultant" does not include an attorney, investment counselor, or banker who in the conduct of that person's profession advises a client when actually engaged in the giving of legal, investment, or financial advice.
(13) "Vending device" means a container used by a charitable organization or professional fund raiser, 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. "Vending device" includes machines, boxes, jars, wishing wells, barrels, or any other container.
(14) "Vending device decal" means any 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, that would indicate that all or a portion of the proceeds from the purchase of items from the vending device will go to a specific charitable organization.
13-22-2. Definitions.As used in this chapter:
(1) (a) "Charitable organization" or "organization" means any person, joint venture, partnership, limited liability company, corporation, association, group, or other entity:
(i) that is or holds itself out 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 solicitation or employs an appeal that reasonably suggests or implies that there is a charitable purpose to any solicitation.
(b) "Charitable organization" includes a "chapter," "branch," "area," "office," or similar "affiliate" or any person soliciting contributions within the state for a charitable organization that has its principal place of business outside the state.
(2) "Charitable purpose" means any benevolent, educational, philanthropic, humane, patriotic, religious, eleemosynary, social welfare or advocacy, public health, environmental, conservation, civic, or other charitable objective or for the benefit of a public safety, law enforcement, or firefighter fraternal association.
(3) "Charitable solicitation" or "solicitation" means any request, directly or indirectly, for money, credit, property, financial assistance, or any other thing of value on the plea or representation that it will be used for a charitable purpose. A charitable solicitation may be made in any manner, including:
(a) any oral or written request, including any request by telephone, radio or television, or other advertising or communications media;
(b) the distribution, circulation, or posting of any handbill, written advertisement, or publication; or
(c) the sale of, offer or attempt to sell, or request of donations in exchange for any advertisement, book, card, chance, coupon, device, magazine, membership, merchandise, subscription, ticket, flower, flag, button, sticker, ribbon, token, trinket, tag, souvenir, candy, or any other article in connection with which any appeal is made for any charitable purpose, or the use of the name of any charitable organization or movement as an inducement or reason for making any purchase donation, or, in connection with any sale or donation, stating or implying that the whole or any part of the proceeds of any sale or donation will go to or be donated to any charitable purpose.
(4) "Charitable sales promotion" means an advertising or sales campaign, conducted by a commercial co-venturer, which represents that the purchase or use of goods or services offered by the commercial co-venturer will benefit, in whole or in part, a charitable organization or purpose.
(5) "Commercial co-venturer" means a person who for profit is regularly and primarily engaged in trade or commerce other than in connection with soliciting for charitable organizations or purposes.
(6) (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; and
(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 to a charitable organization by a financial institution in the ordinary course of business; or
(ii) fees, dues, or assessments paid by members when membership is not conferred solely as consideration for making a contribution.
(7) "Contributor" means any donor, pledgor, purchaser, or other person who makes a contribution.
(8) "Director" means the director of the Division of Consumer Protection.
(9) "Division" means the Division of Consumer Protection of the Department of Commerce.
(10) "Material fact" means information that a person of ordinary intelligence and prudence would consider relevant in deciding whether or not to make a contribution in response to a charitable solicitation.
(11) (a) "Professional fund raiser," except as provided in Subsection (11)(b), means any person who:
(i) for compensation or any other consideration solicits contributions for charitable purposes, or plans or manages the solicitation of contributions for or on behalf of any charitable organization or any other person;
(ii) engages in, or who holds himself out to persons in this state as being independently engaged in, the business of soliciting contributions for a charitable organization;
(iii) manages, supervises, or trains any solicitor whether as an employee or otherwise; or
(iv) uses a vending device or vending device decal for financial or other consideration that implies a solicitation of contributions or donations for any charitable organization or charitable purposes.
(b) "Professional fund raiser" does not include a bona fide officer, director, volunteer, or full-time employee of a charitable organization.
(12) (a) "Professional fund raising counsel or consultant" or other comparable designation or title means a person who:
(i) for compensation plans, manages, advises, counsels, consults, or prepares material for, or with respect to, the solicitation in this state of contributions for a charitable organization, whether or not at any time the person has custody of contributions from a solicitation;
(ii) does not solicit contributions; and
(iii) does not employ, procure, or engage any compensated person to solicit or receive contributions.
(b) "Professional fund raising counsel or consultant" does not include an attorney, investment counselor, or banker who in the conduct of that person's profession advises a client when actually engaged in the giving of legal, investment, or financial advice.
(13) "Vending device" means a container used by a charitable organization or professional fund raiser, 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. "Vending device" includes machines, boxes, jars, wishing wells, barrels, or any other container.
(14) "Vending device decal" means any 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, 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.

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13-22-3. Investigative and enforcement powers -- Education.(1) The division may make any investigation it considers necessary to determine whether any person is violating, has violated, or is about to violate any provision of 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) Whenever it appears to the director that substantial evidence exists that any person has engaged in, is engaging in, or is about to engage in any act or practice prohibited in this chapter or constituting a violation of this chapter or any rule made or order issued under this chapter, the director may do any of the following in addition to other specific duties under this chapter:
(a) in accordance with Title 63G, Chapter 4, Administrative Procedures Act, the director may issue an order to cease and desist from engaging in the act or practice or from doing any act in furtherance of the activity; or
(b) the director may bring an action in the appropriate district court of this state to enjoin the acts or practices constituting the violation or to enforce compliance with this chapter or any rule made or order issued under this chapter.
(3) Whenever it appears to the director by a preponderance of the evidence that a person has engaged in or is engaging in any act or practice prohibited in this chapter or constituting a violation of this chapter or any rule made or order issued under this chapter, the director may assess an administrative fine of up to $500 per violation up to $10,000 for any series of violations arising out of the same operative facts.
(4) Upon a proper showing, the court hearing an action brought under Subsection (2)(b) may:
(a) issue an injunction;
(b) enter a declaratory judgment;
(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 rescission of agreements violating this chapter;
(f) impose a fine of not more than $2,000 for each violation of this chapter; and
(g) impose a civil penalty, or any other relief the court considers just.
(5) (a) In assessing the amount of a fine or penalty under Subsection (3), (4)(f), or (4)(g), the director or court imposing the fine or penalty shall consider the gravity of the violation and the intent of the violator.
(b) If it does not appear by a preponderance of the evidence that the violator acted in bad faith or with intent to harm the public, the director or court shall excuse payment of the fine or penalty.
(6) The division may provide or contract to provide public education and voluntary education for applicants and registrants under this chapter. The education may be in the form of publications, advertisements, seminars, courses, or other appropriate means. The scope of the education may include:
(a) the requirements, prohibitions, and regulated practices under this chapter;

(b) suggestions for effective financial and organizational practices for charitable organizations;
(c) charitable giving and solicitation;
(d) potential problems with solicitations and fraudulent or deceptive practices; and
(e) any other matter relevant to the subject of this chapter.
13-22-3. Investigative and enforcement powers -- Education.(1) The division may make any investigation it considers necessary to determine whether any person is violating, has violated, or is about to violate any provision of 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) Whenever it appears to the director that substantial evidence exists that any person has engaged in, is engaging in, or is about to engage in any act or practice prohibited in this chapter or constituting a violation of this chapter or any rule made or order issued under this chapter, the director may do any of the following in addition to other specific duties under this chapter:
(a) in accordance with Title 63G, Chapter 4, Administrative Procedures Act, the director may issue an order to cease and desist from engaging in the act or practice or from doing any act in furtherance of the activity; or
(b) the director may bring an action in the appropriate district court of this state to enjoin the acts or practices constituting the violation or to enforce compliance with this chapter or any rule made or order issued under this chapter.
(3) Whenever it appears to the director by a preponderance of the evidence that a person has engaged in or is engaging in any act or practice prohibited in this chapter or constituting a violation of this chapter or any rule made or order issued under this chapter, the director may assess an administrative fine of up to $500 per violation up to $10,000 for any series of violations arising out of the same operative facts.
(4) Upon a proper showing, the court hearing an action brought under Subsection (2)(b) may:
(a) issue an injunction;
(b) enter a declaratory judgment;
(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 rescission of agreements violating this chapter;
(f) impose a fine of not more than $2,000 for each violation of this chapter; and
(g) impose a civil penalty, or any other relief the court considers just.
(5) (a) In assessing the amount of a fine or penalty under Subsection (3), (4)(f), or (4)(g), the director or court imposing the fine or penalty shall consider the gravity of the violation and the intent of the violator.
(b) If it does not appear by a preponderance of the evidence that the violator acted in bad faith or with intent to harm the public, the director or court shall excuse payment of the fine or penalty.
(6) The division may provide or contract to provide public education and voluntary education for applicants and registrants under this chapter. The education may be in the form of publications, advertisements, seminars, courses, or other appropriate means. The scope of the education may include:
(a) the requirements, prohibitions, and regulated practices under this chapter;

(b) suggestions for effective financial and organizational practices for charitable organizations;
(c) charitable giving and solicitation;
(d) potential problems with solicitations and fraudulent or deceptive practices; and
(e) any other matter relevant to the subject of this chapter.

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13-22-4. Violation a misdemeanor -- Damages.1) A person who willfully violates any provision of this chapter, either by failing to comply with any requirement or by doing any act prohibited in the chapter, is guilty of a class B misdemeanor. Each day the violation is committed or permitted to continue constitutes a separate punishable offense.
(2) Nothing in this section precludes any person damaged as a result of a charitable solicitation from maintaining a civil action for damages or injunctive relief.
(3) The division may maintain an action for damages or injunctive relief on behalf of itself or any other person to enforce compliance with this chapter.
13-22-4. Violation a misdemeanor -- Damages.1) A person who willfully violates any provision of this chapter, either by failing to comply with any requirement or by doing any act prohibited in the chapter, is guilty of a class B misdemeanor. Each day the violation is committed or permitted to continue constitutes a separate punishable offense.
(2) Nothing in this section precludes any person damaged as a result of a charitable solicitation from maintaining a civil action for damages or injunctive relief.
(3) The division may maintain an action for damages or injunctive relief on behalf of itself or any other person to enforce compliance with this chapter.

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13-22-5. Registration required.(1) (a) It is unlawful for any organization to engage in an activity described in Subsection (1)(b) unless the organization is:
(i) exempt under Section 13-22-8; or
(ii) registered with the division in accordance with this chapter.
(b) Unless an organization meets the requirements of Subsection (1)(a), the organization may not knowingly solicit, request, promote, advertise, or sponsor a charitable solicitation if the charitable solicitation:
(i) originates in Utah;
(ii) is received in Utah; or
(iii) is caused to be made through business operations in Utah.
(2) Subsection (1) does not prohibit an organization from receiving an unsolicited contribution.
(3) It is unlawful for any professional fund raiser to knowingly solicit, request, promote, advertise, or sponsor the solicitation in this state of any contribution for a charitable organization, whether or not the charitable organization is exempt under Section 13-22-8, unless the professional fund raiser and any nonexempt charitable organization that is benefitted are registered with the division.
(4) It is unlawful for any professional fund raising counsel or consultant to knowingly plan, manage, advise, counsel, consult, or prepare material for, or with respect to, the solicitation in this state of a contribution for a charitable organization, whether or not the charitable organization is exempt under Section 13-22-8, unless the professional fund raising counsel or consultant and any nonexempt charitable organization that is benefitted are registered with the division.
13-22-5. Registration required.(1) (a) It is unlawful for any organization to engage in an activity described in Subsection (1)(b) unless the organization is:
(i) exempt under Section 13-22-8; or
(ii) registered with the division in accordance with this chapter.
(b) Unless an organization meets the requirements of Subsection (1)(a), the organization may not knowingly solicit, request, promote, advertise, or sponsor a charitable solicitation if the charitable solicitation:
(i) originates in Utah;
(ii) is received in Utah; or
(iii) is caused to be made through business operations in Utah.
(2) Subsection (1) does not prohibit an organization from receiving an unsolicited contribution.
(3) It is unlawful for any professional fund raiser to knowingly solicit, request, promote, advertise, or sponsor the solicitation in this state of any contribution for a charitable organization, whether or not the charitable organization is exempt under Section 13-22-8, unless the professional fund raiser and any nonexempt charitable organization that is benefitted are registered with the division.
(4) It is unlawful for any professional fund raising counsel or consultant to knowingly plan, manage, advise, counsel, consult, or prepare material for, or with respect to, the solicitation in this state of a contribution for a charitable organization, whether or not the charitable organization is exempt under Section 13-22-8, unless the professional fund raising counsel or consultant and any nonexempt charitable organization that is benefitted are registered with the division.

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13-22-6. Application for registration.(1) An applicant for registration or renewal of registration as a charitable organization shall:
(a) pay an application fee as determined under Section 63J-1-504; and
(b) submit an application on a form approved by the division which shall include:
(i) the organization's name, address, telephone number, facsimile number, if any, and the names and addresses of any organizations or persons controlled by, controlling, or affiliated with the applicant;
(ii) the specific legal nature of the organization, that is, whether it is an individual, joint venture, partnership, limited liability company, corporation, association, or other entity;
(iii) the names and residence addresses of the officers and directors of the organization;
(iv) the name and address of the registered agent for service of process and a consent to service of process;
(v) the purpose of the solicitation and use of the contributions to be solicited;
(vi) the method by which the solicitation will be conducted and the projected length of time it is to be conducted;
(vii) the anticipated expenses of the solicitation, including all commissions, costs of collection, salaries, and any other items;
(viii) a statement of what percentage of the contributions collected as a result of the solicitation are projected to remain available for application to the charitable purposes declared in the application, including a satisfactory statement of the factual basis for the projected percentage;
(ix) a statement of total contributions collected or received by the organization within the calendar year immediately preceding the date of the application, including a description of the expenditures made from or the use made of the contributions;
(x) a copy of any written agreements with any professional fund raiser involved with the solicitation;
(xi) disclosure of any injunction, judgment, or administrative order or conviction of any crime involving moral turpitude with respect to any officer, director, manager, operator, or principal of the organization;
(xii) a copy of all agreements to which the applicant is, or proposes to be, a party regarding the use of proceeds for the solicitation or fundraising;
(xiii) a statement of whether or not the charity, or its parent foundation, will be using the services of a professional fund raiser or of a professional fund raising counsel or consultant;
(xiv) if either the charity or its parent foundation will be using the services of a professional fund raiser or a professional fund raising counsel or consultant:
(A) a copy of all agreements related to the services; and
(B) an acknowledgment that fund raising in the state will not commence until both the charitable organization, its parent foundation, if any, and the professional fund raiser or professional fund raising counsel or consultant are registered and in compliance with this chapter; and
(xv) any additional information the division may require by rule.
(2) If any 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 organization failing to file a registration application or renewal by the due date or filing an incomplete registration application or renewal shall pay an additional fee of $25 for each month or part of a month after the date on which the registration application or renewal were due to be filed.
(4) Notwithstanding Subsection (1), the registration fee for a certified local museum under Section 9-6-603 is 65% of the registration fee established under Subsection (1).
13-22-6. Application for registration.(1) An applicant for registration or renewal of registration as a charitable organization shall:
(a) pay an application fee as determined under Section 63J-1-504; and
(b) submit an application on a form approved by the division which shall include:
(i) the organization's name, address, telephone number, facsimile number, if any, and the names and addresses of any organizations or persons controlled by, controlling, or affiliated with the applicant;
(ii) the specific legal nature of the organization, that is, whether it is an individual, joint venture, partnership, limited liability company, corporation, association, or other entity;
(iii) the names and residence addresses of the officers and directors of the organization;
(iv) the name and address of the registered agent for service of process and a consent to service of process;
(v) the purpose of the solicitation and use of the contributions to be solicited;
(vi) the method by which the solicitation will be conducted and the projected length of time it is to be conducted;
(vii) the anticipated expenses of the solicitation, including all commissions, costs of collection, salaries, and any other items;
(viii) a statement of what percentage of the contributions collected as a result of the solicitation are projected to remain available for application to the charitable purposes declared in the application, including a satisfactory statement of the factual basis for the projected percentage;
(ix) a statement of total contributions collected or received by the organization within the calendar year immediately preceding the date of the application, including a description of the expenditures made from or the use made of the contributions;
(x) a copy of any written agreements with any professional fund raiser involved with the solicitation;
(xi) disclosure of any injunction, judgment, or administrative order or conviction of any crime involving moral turpitude with respect to any officer, director, manager, operator, or principal of the organization;
(xii) a copy of all agreements to which the applicant is, or proposes to be, a party regarding the use of proceeds for the solicitation or fundraising;
(xiii) a statement of whether or not the charity, or its parent foundation, will be using the services of a professional fund raiser or of a professional fund raising counsel or consultant;
(xiv) if either the charity or its parent foundation will be using the services of a professional fund raiser or a professional fund raising counsel or consultant:
(A) a copy of all agreements related to the services; and
(B) an acknowledgment that fund raising in the state will not commence until both the charitable organization, its parent foundation, if any, and the professional fund raiser or professional fund raising counsel or consultant are registered and in compliance with this chapter; and
(xv) any additional information the division may require by rule.
(2) If any 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 organization failing to file a registration application or renewal by the due date or filing an incomplete registration application or renewal shall pay an additional fee of $25 for each month or part of a month after the date on which the registration application or renewal were due to be filed.
(4) Notwithstanding Subsection (1), the registration fee for a certified local museum under Section 9-6-603 is 65% of the registration fee established under Subsection (1).

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13-22-8. Exemptions.(1) Section 13-22-5 does not apply to:
(a) a solicitation that an organization conducts among its own established and bona fide membership exclusively through the voluntarily donated efforts of other members or officers of the organization;
(b) a bona fide religious, ecclesiastical, or denominational organization if:
(i) the solicitation is made for a church, missionary, religious, or humanitarian purpose; and
(ii) the organization is either:
(A) a lawfully organized corporation, institution, society, church, or established physical place of worship, at which nonprofit religious services and activities are regularly conducted and carried on;
(B) a bona fide religious group:
(I) that does not maintain specific places of worship;
(II) that is not subject to federal income tax; and
(III) not required to file an IRS Form 990 under any circumstance; or
(C) a separate group or corporation that is an integral part of an institution that is an income tax exempt organization under 26 U.S.C. Sec. 501(c)(3) and is not primarily supported by funds solicited outside its own membership or congregation;
(c) a solicitation by a broadcast media owned or operated by an educational institution or governmental entity, or any entity organized solely for the support of that broadcast media;
(d) except as provided in Subsection 13-22-21(1), a solicitation for the relief of any person sustaining a life-threatening illness or injury specified by name at the time of solicitation if the entire amount collected without any deduction is turned over to the named person;
(e) a political party authorized to transact its affairs within this state and any candidate and campaign worker of the party if the content and manner of any solicitation make clear that the solicitation is for the benefit of the political party or candidate;
(f) a political action committee or group soliciting funds relating to issues or candidates on the ballot if the committee or group is required to file financial information with a federal or state election commission;
(g) any school accredited by the state, any accredited institution of higher learning, or club or parent, teacher, or student organization within and authorized by the school in support of the operations or extracurricular activities of the school;
(h) a public or higher education foundation established under Title 53A or 53B;
(i) a television station, radio station, or newspaper of general circulation that donates air time or print space for no consideration as part of a cooperative solicitation effort on behalf of a charitable organization, whether or not that organization is required to register under this chapter;
(j) a volunteer fire department, rescue squad, or local civil defense organization whose financial oversight is under the control of a local governmental entity;
(k) any governmental unit of any state or the United States; and
(l) any corporation:
(i) established by an act of the United States Congress; and
(ii) that is required by federal law to submit an annual report:
(A) on the activities of the corporation, including an itemized report of all receipts and expenditures of the corporation; and

(B) to the United States Secretary of Defense to be:
(I) audited; and
(II) submitted to the United States Congress.
(2) Any organization claiming an exemption under this section bears the burden of proving its eligibility for, or the applicability of, the exemption claimed.
(3) Each organization exempt from registration pursuant to this section that makes a material change in its legal status, officers, address, or similar changes shall file a report informing the division of its current legal status, business address, business phone, officers, and primary contact person within 30 days of the change.
(4) The division may by rule:
(a) require organizations exempt from registration pursuant to this section to file a notice of claim of exemption;
(b) prescribe the contents of the notice of claim; and
(c) require a filing fee for the notice, as determined under Section 63J-1-504.
13-22-8. Exemptions.(1) Section 13-22-5 does not apply to:
(a) a solicitation that an organization conducts among its own established and bona fide membership exclusively through the voluntarily donated efforts of other members or officers of the organization;
(b) a bona fide religious, ecclesiastical, or denominational organization if:
(i) the solicitation is made for a church, missionary, religious, or humanitarian purpose; and
(ii) the organization is either:
(A) a lawfully organized corporation, institution, society, church, or established physical place of worship, at which nonprofit religious services and activities are regularly conducted and carried on;
(B) a bona fide religious group:
(I) that does not maintain specific places of worship;
(II) that is not subject to federal income tax; and
(III) not required to file an IRS Form 990 under any circumstance; or
(C) a separate group or corporation that is an integral part of an institution that is an income tax exempt organization under 26 U.S.C. Sec. 501(c)(3) and is not primarily supported by funds solicited outside its own membership or congregation;
(c) a solicitation by a broadcast media owned or operated by an educational institution or governmental entity, or any entity organized solely for the support of that broadcast media;
(d) except as provided in Subsection 13-22-21(1), a solicitation for the relief of any person sustaining a life-threatening illness or injury specified by name at the time of solicitation if the entire amount collected without any deduction is turned over to the named person;
(e) a political party authorized to transact its affairs within this state and any candidate and campaign worker of the party if the content and manner of any solicitation make clear that the solicitation is for the benefit of the political party or candidate;
(f) a political action committee or group soliciting funds relating to issues or candidates on the ballot if the committee or group is required to file financial information with a federal or state election commission;
(g) any school accredited by the state, any accredited institution of higher learning, or club or parent, teacher, or student organization within and authorized by the school in support of the operations or extracurricular activities of the school;
(h) a public or higher education foundation established under Title 53A or 53B;
(i) a television station, radio station, or newspaper of general circulation that donates air time or print space for no consideration as part of a cooperative solicitation effort on behalf of a charitable organization, whether or not that organization is required to register under this chapter;
(j) a volunteer fire department, rescue squad, or local civil defense organization whose financial oversight is under the control of a local governmental entity;
(k) any governmental unit of any state or the United States; and
(l) any corporation:
(i) established by an act of the United States Congress; and
(ii) that is required by federal law to submit an annual report:
(A) on the activities of the corporation, including an itemized report of all receipts and expenditures of the corporation; and

(B) to the United States Secretary of Defense to be:
(I) audited; and
(II) submitted to the United States Congress.
(2) Any organization claiming an exemption under this section bears the burden of proving its eligibility for, or the applicability of, the exemption claimed.
(3) Each organization exempt from registration pursuant to this section that makes a material change in its legal status, officers, address, or similar changes shall file a report informing the division of its current legal status, business address, business phone, officers, and primary contact person within 30 days of the change.
(4) The division may by rule:
(a) require organizations exempt from registration pursuant to this section to file a notice of claim of exemption;
(b) prescribe the contents of the notice of claim; and
(c) require a filing fee for the notice, as determined under Section 63J-1-504.

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13-22-9. Professional fund raiser's or fund raising counsel's or consultant's permit.(1) It is unlawful for any person or entity to act as a professional fund raiser or professional fund raising counsel or consultant, whether or not representing an organization exempt from registration under Section 13-22-8, without first obtaining a permit from the division by complying with all of the following application requirements:
(a) pay an application fee as determined under Section 63J-1-504; and
(b) submit a written application, verified under oath, on a form approved by the division that includes:
(i) the applicant's name, address, telephone number, facsimile number, if any;
(ii) the name and address of any 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 is an individual, joint venture, partnership, limited liability company, corporation, association, or other entity;
(v) the names and residence addresses of any officer or director of the applicant;
(vi) the name and address of the registered agent for service of process and a consent to service of process;
(vii) if a professional fund raiser:
(A) the purpose of the solicitation and use of the contributions to be solicited;
(B) the method by which the solicitation will be conducted and the projected length of time it is to be conducted;
(C) the anticipated expenses of the solicitation, including all commissions, costs of collection, salaries, and any other items;
(D) a statement of what percentage of the contributions collected as a result of the 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 within the calendar year immediately preceding the date of the application, including a description of the expenditures made from or the use made of the contributions;
(viii) if a professional fund raising counsel or consultant:
(A) the purpose of the plan, management, advise, counsel or preparation of materials for, or respect to the solicitation and use of the contributions solicited;
(B) the method by which the plan, management, advise, counsel, or preparation of materials for, or respect to the solicitation will be organized or coordinated and the projected length of time of the solicitation;
(C) the anticipated expenses of the plan, management, advise, counsel, or preparation of materials for, or respect to the solicitation, including all commissions, costs of collection, salaries, and any other items;
(D) a statement of total fees to be earned or received from the charitable organization declared in the application, and what percentage of the contributions collected as a result of the plan, management, advise, counsel, or preparation of materials for, or respect to the solicitation are projected after deducting the total fees to be earned or received 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) a statement of total net fees earned or received within the calendar year immediately preceding the date of the application, including a description of the expenditures made from or the use of the net earned or received fees in the planning, management, advising, counseling, or preparation of materials for, or respect to the solicitation and use of the contributions solicited for the charitable organization;
(ix) disclosure of any injunction, judgment, or administrative order against the applicant or the applicant's conviction of any crime involving moral turpitude;
(x) a copy of any written agreements with any charitable organization;
(xi) the disclosure of any injunction, judgment, or administrative order or conviction of any crime involving moral turpitude with respect to any officer, director, manager, operator, or 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) an acknowledgment that fund raising in the state will not commence until both the professional fund raiser or professional fund raising counsel or consultant and the charity, its parent foundation, if any, are registered and in compliance with this chapter; and
(xiv) any additional information the division may require by rule.
(2) If any information contained in the application for a permit 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 permit fee, an applicant failing to file a permit application or renewal by the due date or filing an incomplete permit application or renewal shall pay an additional fee of $25 for each month or part of a month after the date on which the permit application or renewal were due to be filed.
13-22-9. Professional fund raiser's or fund raising counsel's or consultant's permit.(1) It is unlawful for any person or entity to act as a professional fund raiser or professional fund raising counsel or consultant, whether or not representing an organization exempt from registration under Section 13-22-8, without first obtaining a permit from the division by complying with all of the following application requirements:
(a) pay an application fee as determined under Section 63J-1-504; and
(b) submit a written application, verified under oath, on a form approved by the division that includes:
(i) the applicant's name, address, telephone number, facsimile number, if any;
(ii) the name and address of any 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 is an individual, joint venture, partnership, limited liability company, corporation, association, or other entity;
(v) the names and residence addresses of any officer or director of the applicant;
(vi) the name and address of the registered agent for service of process and a consent to service of process;
(vii) if a professional fund raiser:
(A) the purpose of the solicitation and use of the contributions to be solicited;
(B) the method by which the solicitation will be conducted and the projected length of time it is to be conducted;
(C) the anticipated expenses of the solicitation, including all commissions, costs of collection, salaries, and any other items;
(D) a statement of what percentage of the contributions collected as a result of the 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 within the calendar year immediately preceding the date of the application, including a description of the expenditures made from or the use made of the contributions;
(viii) if a professional fund raising counsel or consultant:
(A) the purpose of the plan, management, advise, counsel or preparation of materials for, or respect to the solicitation and use of the contributions solicited;
(B) the method by which the plan, management, advise, counsel, or preparation of materials for, or respect to the solicitation will be organized or coordinated and the projected length of time of the solicitation;
(C) the anticipated expenses of the plan, management, advise, counsel, or preparation of materials for, or respect to the solicitation, including all commissions, costs of collection, salaries, and any other items;
(D) a statement of total fees to be earned or received from the charitable organization declared in the application, and what percentage of the contributions collected as a result of the plan, management, advise, counsel, or preparation of materials for, or respect to the solicitation are projected after deducting the total fees to be earned or received 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) a statement of total net fees earned or received within the calendar year immediately preceding the date of the application, including a description of the expenditures made from or the use of the net earned or received fees in the planning, management, advising, counseling, or preparation of materials for, or respect to the solicitation and use of the contributions solicited for the charitable organization;
(ix) disclosure of any injunction, judgment, or administrative order against the applicant or the applicant's conviction of any crime involving moral turpitude;
(x) a copy of any written agreements with any charitable organization;
(xi) the disclosure of any injunction, judgment, or administrative order or conviction of any crime involving moral turpitude with respect to any officer, director, manager, operator, or 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) an acknowledgment that fund raising in the state will not commence until both the professional fund raiser or professional fund raising counsel or consultant and the charity, its parent foundation, if any, are registered and in compliance with this chapter; and
(xiv) any additional information the division may require by rule.
(2) If any information contained in the application for a permit 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 permit fee, an applicant failing to file a permit application or renewal by the due date or filing an incomplete permit application or renewal shall pay an additional fee of $25 for each month or part of a month after the date on which the permit application or renewal were due to be filed.

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13-22-11. Expiration of registration and permits.(1) Each charitable organization registration issued under this chapter expires annually on the earlier of January 1, April 1, July 1, or October 1 following the completion of 12 months after the date of initial issuance.
(2) Each professional fund raiser's permit issued under this chapter expires the earlier of:
(a) annually on the date of issuance; or
(b) when the professional fund raiser ceases affiliation with the charitable organization named in the application for permit.
(3) Each professional fund raising counsel's or consultant's permit issued under this chapter expires the earlier of:
(a) annually on the date of issuance; or
(b) when the professional fundraising counsel or consultant ceases affiliation with the charitable organization named in the application for permit.
(4) A registration or permit may be renewed only by complying with the requirements for obtaining the original registration or permit.
13-22-11. Expiration of registration and permits.(1) Each charitable organization registration issued under this chapter expires annually on the earlier of January 1, April 1, July 1, or October 1 following the completion of 12 months after the date of initial issuance.
(2) Each professional fund raiser's permit issued under this chapter expires the earlier of:
(a) annually on the date of issuance; or
(b) when the professional fund raiser ceases affiliation with the charitable organization named in the application for permit.
(3) Each professional fund raising counsel's or consultant's permit issued under this chapter expires the earlier of:
(a) annually on the date of issuance; or
(b) when the professional fundraising counsel or consultant ceases affiliation with the charitable organization named in the application for permit.
(4) A registration or permit may be renewed only by complying with the requirements for obtaining the original registration or permit.

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13-22-12. Grounds for denial, suspension, or revocation.(1) The director may, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, issue an order to deny, suspend, or revoke an application, registration, permit, or information card, upon a finding that the order is in the public interest and that:
(a) the application for registration or renewal is incomplete or misleading in any material respect;
(b) the applicant or registrant or any officer, director, agent, or employee of the applicant or registrant has:
(i) violated this chapter or committed any of the prohibited acts and practices described in this chapter;
(ii) been enjoined by any 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;
(iii) been convicted of a crime involving moral turpitude;
(iv) obtained or attempted to obtain a registration or a permit by misrepresentation;
(v) materially misrepresented or caused to be misrepresented the purpose and manner in which contributed funds and property will be used in connection with any solicitation;
(vi) caused or allowed any paid solicitor to violate any rule made or order issued under this chapter by the division;
(vii) failed to take corrective action with its solicitors who have violated this chapter or committed any of the prohibited acts and practices of this chapter;
(viii) used, or attempted to use a name that either is deceptively similar to a name used by an existing registered or exempt charitable organization, or appears reasonably likely to cause confusion of names;
(ix) failed to timely file with the division any report required in this chapter or by rules made under this chapter; or
(x) failed to pay a fine imposed by the division in accordance with Section 13-22-3; or
(c) the applicant for registration or renewal has no charitable purpose.
(2) The director may, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, issue an order to revoke or suspend a claim of exemption filed under Subsection 13-22-8(4), upon a finding that the order is in the public interest and that:
(a) the notice of claim of exemption is incomplete or false or misleading in any material respect; or
(b) any provision of this chapter, or any rule made or order issued by the division under this chapter has been violated in connection with a charitable solicitation by any exempt organization.
13-22-12. Grounds for denial, suspension, or revocation.(1) The director may, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, issue an order to deny, suspend, or revoke an application, registration, permit, or information card, upon a finding that the order is in the public interest and that:
(a) the application for registration or renewal is incomplete or misleading in any material respect;
(b) the applicant or registrant or any officer, director, agent, or employee of the applicant or registrant has:
(i) violated this chapter or committed any of the prohibited acts and practices described in this chapter;
(ii) been enjoined by any 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;
(iii) been convicted of a crime involving moral turpitude;
(iv) obtained or attempted to obtain a registration or a permit by misrepresentation;
(v) materially misrepresented or caused to be misrepresented the purpose and manner in which contributed funds and property will be used in connection with any solicitation;
(vi) caused or allowed any paid solicitor to violate any rule made or order issued under this chapter by the division;
(vii) failed to take corrective action with its solicitors who have violated this chapter or committed any of the prohibited acts and practices of this chapter;
(viii) used, or attempted to use a name that either is deceptively similar to a name used by an existing registered or exempt charitable organization, or appears reasonably likely to cause confusion of names;
(ix) failed to timely file with the division any report required in this chapter or by rules made under this chapter; or
(x) failed to pay a fine imposed by the division in accordance with Section 13-22-3; or
(c) the applicant for registration or renewal has no charitable purpose.
(2) The director may, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, issue an order to revoke or suspend a claim of exemption filed under Subsection 13-22-8(4), upon a finding that the order is in the public interest and that:
(a) the notice of claim of exemption is incomplete or false or misleading in any material respect; or
(b) any provision of this chapter, or any rule made or order issued by the division under this chapter has been violated in connection with a charitable solicitation by any exempt organization.

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13-22-13. Prohibited practices.In connection with any solicitation, each of the following acts and practices is prohibited:
(1) stating or implying that registration constitutes endorsement or approval by the division or any governmental entity;
(2) violating any of the requirements of this chapter or any rule made under this chapter;
(3) making any untrue 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 Subsection 13-22-3(2) or (3).
13-22-13. Prohibited practices.In connection with any solicitation, each of the following acts and practices is prohibited:
(1) stating or implying that registration constitutes endorsement or approval by the division or any governmental entity;
(2) violating any of the requirements of this chapter or any rule made under this chapter;
(3) making any untrue 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 Subsection 13-22-3(2) or (3).

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13-22-14. Accuracy not guaranteed.(1) By issuing a permit, the state does not guarantee the accuracy of any representation contained in the permit, nor does it warrant that any statement made by the holder of the permit is truthful. The state 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 permit.
(2) The following statement shall appear on each permit: "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 PERMIT."
(3) No solicitation for charitable purposes shall use the fact or requirement of registration or of the filing of any report with the division pursuant to this chapter with the intent to cause or in a manner tending to cause any person to believe that the solicitation, the manner in which it is conducted, its purposes, any use to which the proceeds will be applied or the person or organization conducting it has been or will be in any way endorsed, sanctioned, or approved by the division or any governmental agency or office.
13-22-14. Accuracy not guaranteed.(1) By issuing a permit, the state does not guarantee the accuracy of any representation contained in the permit, nor does it warrant that any statement made by the holder of the permit is truthful. The state 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 permit.
(2) The following statement shall appear on each permit: "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 PERMIT."
(3) No solicitation for charitable purposes shall use the fact or requirement of registration or of the filing of any report with the division pursuant to this chapter with the intent to cause or in a manner tending to cause any person to believe that the solicitation, the manner in which it is conducted, its purposes, any use to which the proceeds will be applied or the person or organization conducting it has been or will be in any way endorsed, sanctioned, or approved by the division or any governmental agency or office.

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13-22-15. Financial reports required.(1) Each charitable organization registered under this chapter shall file each year of registration an annual financial report or an IRS Form 990, 990EZ, or 990PF. The financial report or IRS Form 990, 990EZ, or 990PF shall be filed with the division within 30 days after the end of the year reported. If an annual financial report or IRS Form 990, 990EZ, or 990PF are not available during its first year of registration, the charitable organization shall provide quarterly financial reports to the division within 30 days after the end of the quarter reported.
(2) Each financial report shall disclose:
(a) the gross amount of contributions received;
(b) the amount of contributions disbursed or to be disbursed to each charitable organization or charitable purpose represented;
(c) aggregate amounts paid to any professional fund raiser;
(d) amounts spent for overhead, expenses, commissions, and similar purposes; and
(e) the name and address of any professional fund raiser used by the organization.
(3) Each report required under this section shall be signed under oath by an officer or principal of the organization.
(4) The registration of any organization that fails to file a timely report or IRS Form 990, 990EZ, or 990PF as required in this section or files an incomplete report or IRS Form 990, 990EZ, or 990PF is automatically suspended pending a final order of the division under Section 13-22-12. The division may reinstate the registration after receiving:
(a) a report or IRS Form 990, 990EZ, or 990PF fulfilling the requirements of this section;
(b) an application for renewed registration; and
(c) a penalty of $25 for each month or part of a month after the date on which the quarterly report or IRS Form 990 was due to be filed.
13-22-15. Financial reports required.(1) Each charitable organization registered under this chapter shall file each year of registration an annual financial report or an IRS Form 990, 990EZ, or 990PF. The financial report or IRS Form 990, 990EZ, or 990PF shall be filed with the division within 30 days after the end of the year reported. If an annual financial report or IRS Form 990, 990EZ, or 990PF are not available during its first year of registration, the charitable organization shall provide quarterly financial reports to the division within 30 days after the end of the quarter reported.
(2) Each financial report shall disclose:
(a) the gross amount of contributions received;
(b) the amount of contributions disbursed or to be disbursed to each charitable organization or charitable purpose represented;
(c) aggregate amounts paid to any professional fund raiser;
(d) amounts spent for overhead, expenses, commissions, and similar purposes; and
(e) the name and address of any professional fund raiser used by the organization.
(3) Each report required under this section shall be signed under oath by an officer or principal of the organization.
(4) The registration of any organization that fails to file a timely report or IRS Form 990, 990EZ, or 990PF as required in this section or files an incomplete report or IRS Form 990, 990EZ, or 990PF is automatically suspended pending a final order of the division under Section 13-22-12. The division may reinstate the registration after receiving:
(a) a report or IRS Form 990, 990EZ, or 990PF fulfilling the requirements of this section;
(b) an application for renewed registration; and
(c) a penalty of $25 for each month or part of a month after the date on which the quarterly report or IRS Form 990 was due to be filed.

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13-22-16. Separate accounts and receipts required.(1) Each organization required to be registered under this chapter and each professional fund raiser shall segregate and maintain all contributed funds in an account held separately from its operating account. Each contribution in the control or custody of the professional solicitor shall, in its entirety and within 10 days of its receipt, be deposited in an account at a bank or other federally insured financial institution which shall be in the name of the charitable organization. The charitable organization shall maintain and administer the account and shall have sole control of all withdrawals.
(2) Each organization required to be registered under this chapter and each professional fund raiser shall maintain and use duplicate receipts for contributions of money, securities, and cash equivalents so that one receipt is issued to each contributor and one is maintained by the charitable organization.
13-22-16. Separate accounts and receipts required.(1) Each organization required to be registered under this chapter and each professional fund raiser shall segregate and maintain all contributed funds in an account held separately from its operating account. Each contribution in the control or custody of the professional solicitor shall, in its entirety and within 10 days of its receipt, be deposited in an account at a bank or other federally insured financial institution which shall be in the name of the charitable organization. The charitable organization shall maintain and administer the account and shall have sole control of all withdrawals.
(2) Each organization required to be registered under this chapter and each professional fund raiser shall maintain and use duplicate receipts for contributions of money, securities, and cash equivalents so that one receipt is issued to each contributor and one is maintained by the charitable organization.

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13-22-17. Written agreement required.(1) A professional fund raiser may only engage in activities on behalf of a charitable organization through written agreement with the organization.
(2) A professional fund raising counsel or consultant may only engage in activities on behalf of a charitable organization through written agreement with the organization.
(3) A charitable organization may only engage the services of a professional fund raiser or professional fund raising counsel or consultant through written agreement.
(4) Copies of the agreement required by this section shall be attached to all applications for registration and or a permit.
13-22-17. Written agreement required.(1) A professional fund raiser may only engage in activities on behalf of a charitable organization through written agreement with the organization.
(2) A professional fund raising counsel or consultant may only engage in activities on behalf of a charitable organization through written agreement with the organization.
(3) A charitable organization may only engage the services of a professional fund raiser or professional fund raising counsel or consultant through written agreement.
(4) Copies of the agreement required by this section shall be attached to all applications for registration and or a permit.

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13-22-18. Local ordinance.This chapter does not prohibit any political subdivision of the state from enacting any ordinance regulating the solicitation of contributions within the subdivision's boundaries so long as the ordinance only coordinates enforcement of this chapter with the division. 13-22-18. Local ordinance.This chapter does not prohibit any political subdivision of the state from enacting any ordinance regulating the solicitation of contributions within the subdivision's boundaries so long as the ordinance only coordinates enforcement of this chapter with the division.

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13-22-19. Reciprocal agreements.(1) The division may convey or exchange information obtained under this chapter with other agencies having regulatory authority over charitable organizations.
(2) The division may accept information that a charitable organization or professional fund raiser files in another state or with any federal agency or other organization in place of substantially similar information that is required to be filed under this chapter.
13-22-19. Reciprocal agreements.(1) The division may convey or exchange information obtained under this chapter with other agencies having regulatory authority over charitable organizations.
(2) The division may accept information that a charitable organization or professional fund raiser files in another state or with any federal agency or other organization in place of substantially similar information that is required to be filed under this chapter.

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13-22-21. Appeal on behalf of individual.(1) If a charitable campaign consisting of exempt solicitations for the relief of a named individual sustaining a life-threatening illness or injury, as described in Subsection 13-22-8(1)(d), collects proceeds in excess of $1,000, the organizer of the campaign shall give the division written notice of the following:
(a) the organizer's name and address;
(b) the name, whereabouts, and present condition of the person for whose relief the contributions are solicited including a letter from the person's attending physician detailing the illness or injury;
(c) the date the charitable campaign commenced; and
(d) the purpose to which the collected contributions are to be applied.
(2) Notice under Subsection (1) is due within 10 days after commencing the appeal or collecting in excess of $1,000, whichever is later.
(3) If the organizer fails to file timely notice, the division shall inform the organizer of the notice requirement and give the organizer 10 additional days as a grace period within which to file the notice. If the organizer fails to file the notice within the grace period, the division may issue a cease and desist order against the organizer.
(4) If, at any time, the division has reasonable cause to believe that the organizer is perpetrating a fraud against the public, or in any other way intends to profit from harming the public through the charitable campaign, it shall issue a cease and desist order against the organizer.
13-22-21. Appeal on behalf of individual.(1) If a charitable campaign consisting of exempt solicitations for the relief of a named individual sustaining a life-threatening illness or injury, as described in Subsection 13-22-8(1)(d), collects proceeds in excess of $1,000, the organizer of the campaign shall give the division written notice of the following:
(a) the organizer's name and address;
(b) the name, whereabouts, and present condition of the person for whose relief the contributions are solicited including a letter from the person's attending physician detailing the illness or injury;
(c) the date the charitable campaign commenced; and
(d) the purpose to which the collected contributions are to be applied.
(2) Notice under Subsection (1) is due within 10 days after commencing the appeal or collecting in excess of $1,000, whichever is later.
(3) If the organizer fails to file timely notice, the division shall inform the organizer of the notice requirement and give the organizer 10 additional days as a grace period within which to file the notice. If the organizer fails to file the notice within the grace period, the division may issue a cease and desist order against the organizer.
(4) If, at any time, the division has reasonable cause to believe that the organizer is perpetrating a fraud against the public, or in any other way intends to profit from harming the public through the charitable campaign, it shall issue a cease and desist order against the organizer.

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13-22-22. Charitable sales promotions.(1) Every charitable organization which agrees to permit a charitable sales promotion to be conducted by a commercial co-venturer on its behalf shall file with the division a notice of the promotion prior to its commencement within this state. The notice shall state:
(a) the names of the charitable organization and commercial co-venturer;
(b) that the charitable organization and the commercial co-venturer will conduct a charitable sales promotion; and
(c) the date the charitable sales promotion is expected to commence.
(2) Prior to the commencement of a charitable sales promotion within this state, every charitable organization which agrees to permit a charitable sales promotion to be conducted in its behalf, shall obtain a written agreement, containing such terms as may be required by rule of the division, from the commercial co-venturer which shall be available to the division upon request.
(3) A commercial co-venturer shall keep the final accounting for each charitable sales promotion conducted in this state for three years after the final accounting date and make the accounting available to the division upon request.
(4) The commercial co-venturer shall disclose in each advertisement for a charitable sales promotion the dollar amount or percent per unit of goods or services purchased or used that will benefit the charitable organization or purpose.
13-22-22. Charitable sales promotions.(1) Every charitable organization which agrees to permit a charitable sales promotion to be conducted by a commercial co-venturer on its behalf shall file with the division a notice of the promotion prior to its commencement within this state. The notice shall state:
(a) the names of the charitable organization and commercial co-venturer;
(b) that the charitable organization and the commercial co-venturer will conduct a charitable sales promotion; and
(c) the date the charitable sales promotion is expected to commence.
(2) Prior to the commencement of a charitable sales promotion within this state, every charitable organization which agrees to permit a charitable sales promotion to be conducted in its behalf, shall obtain a written agreement, containing such terms as may be required by rule of the division, from the commercial co-venturer which shall be available to the division upon request.
(3) A commercial co-venturer shall keep the final accounting for each charitable sales promotion conducted in this state for three years after the final accounting date and make the accounting available to the division upon request.
(4) The 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.

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13-22-23. Fiduciary capacity.Every person soliciting, collecting, or expending contributions for charitable purposes, and every officer, director, trustee, or employee of any person concerned with the solicitation, collection, or expenditure of those contributions, shall be considered to be a fiduciary and acting in a fiduciary capacity. 13-22-23. Fiduciary capacity.Every person soliciting, collecting, or expending contributions for charitable purposes, and every officer, director, trustee, or employee of any person concerned with the solicitation, collection, or expenditure of those contributions, shall be considered to be a fiduciary and acting in a fiduciary capacity.

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13-11-1. Citation of act.This act shall be known and may be cited as the "Utah Consumer Sales Practices Act." 13-11-1. Citation of act.This act shall be known and may be cited as the "Utah Consumer Sales Practices Act."

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13-11-2. Construction and purposes of act.This act shall be construed liberally to promote the following policies:
(1) to simplify, clarify, and modernize the law governing consumer sales practices;
(2) to protect consumers from suppliers who commit deceptive and unconscionable sales practices;
(3) to encourage the development of fair consumer sales practices;
(4) to make state regulation of consumer sales practices not inconsistent with the policies of the Federal Trade Commission Act relating to consumer protection;
(5) to make uniform the law, including the administrative rules, with respect to the subject of this act among those states which enact similar laws; and
(6) to recognize and protect suppliers who in good faith comply with the provisions of this act.
13-11-2. Construction and purposes of act.This act shall be construed liberally to promote the following policies:
(1) to simplify, clarify, and modernize the law governing consumer sales practices;
(2) to protect consumers from suppliers who commit deceptive and unconscionable sales practices;
(3) to encourage the development of fair consumer sales practices;
(4) to make state regulation of consumer sales practices not inconsistent with the policies of the Federal Trade Commission Act relating to consumer protection;
(5) to make uniform the law, including the administrative rules, with respect to the subject of this act among those states which enact similar laws; and
(6) to recognize and protect suppliers who in good faith comply with the provisions of this act.

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13-11-3. Definitions.As used in this chapter:
(1) "Charitable solicitation" means any request directly or indirectly for money, credit, property, financial assistance, or any other thing of value on the plea or representation that it will be used for a charitable purpose. A charitable solicitation may be made in any manner, including:
(a) any oral or written request, including a telephone request;
(b) the distribution, circulation, or posting of any handbill, written advertisement, or publication; or
(c) the sale of, offer or attempt to sell, or request of donations for any book, card, chance, coupon, device, magazine, membership, merchandise, subscription, ticket, flower, flag, button, sticker, ribbon, token, trinket, tag, souvenir, candy, or any other article in connection with which any appeal is made for any charitable purpose, or where the name of any charitable organization or movement is used or referred to as an inducement or reason for making any purchase donation, or where, in connection with any sale or donation, any statement is made that the whole or any part of the proceeds of any sale or donation will go to or be donated to any charitable purpose. A charitable solicitation is considered complete when made, whether or not the organization or person making the solicitation receives any contribution or makes any sale.
(2) (a) "Consumer transaction" means a sale, lease, assignment, award by chance, or other written or oral transfer or disposition of goods, services, or other property, both tangible and intangible (except securities and insurance) to, or apparently to, a person for:
(i) primarily personal, family, or household purposes; or
(ii) purposes that relate to a business opportunity that requires:
(A) expenditure of money or property by the person described in Subsection (2)(a); and
(B) the person described in Subsection (2)(a) to perform personal services on a continuing basis and in which the person described in Subsection (2)(a) has not been previously engaged.
(b) "Consumer transaction" includes:
(i) any of the following with respect to a transfer or disposition described in Subsection (2)(a):
(A) an offer;
(B) a solicitation;
(C) an agreement; or
(D) performance of an agreement; or
(ii) a charitable solicitation.
(3) "Enforcing authority" means the Division of Consumer Protection.
(4) "Final judgment" means a judgment, including any supporting opinion, that determines the rights of the parties and concerning which appellate remedies have been exhausted or the time for appeal has expired.
(5) "Person" means an individual, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, cooperative, or any other legal entity.
(6) "Supplier" means a seller, lessor, assignor, offeror, broker, or other person who regularly solicits, engages in, or enforces consumer transactions, whether or not he deals directly with the consumer.
13-11-3. Definitions.As used in this chapter:
(1) "Charitable solicitation" means any request directly or indirectly for money, credit, property, financial assistance, or any other thing of value on the plea or representation that it will be used for a charitable purpose. A charitable solicitation may be made in any manner, including:
(a) any oral or written request, including a telephone request;
(b) the distribution, circulation, or posting of any handbill, written advertisement, or publication; or
(c) the sale of, offer or attempt to sell, or request of donations for any book, card, chance, coupon, device, magazine, membership, merchandise, subscription, ticket, flower, flag, button, sticker, ribbon, token, trinket, tag, souvenir, candy, or any other article in connection with which any appeal is made for any charitable purpose, or where the name of any charitable organization or movement is used or referred to as an inducement or reason for making any purchase donation, or where, in connection with any sale or donation, any statement is made that the whole or any part of the proceeds of any sale or donation will go to or be donated to any charitable purpose. A charitable solicitation is considered complete when made, whether or not the organization or person making the solicitation receives any contribution or makes any sale.
(2) (a) "Consumer transaction" means a sale, lease, assignment, award by chance, or other written or oral transfer or disposition of goods, services, or other property, both tangible and intangible (except securities and insurance) to, or apparently to, a person for:
(i) primarily personal, family, or household purposes; or
(ii) purposes that relate to a business opportunity that requires:
(A) expenditure of money or property by the person described in Subsection (2)(a); and
(B) the person described in Subsection (2)(a) to perform personal services on a continuing basis and in which the person described in Subsection (2)(a) has not been previously engaged.
(b) "Consumer transaction" includes:
(i) any of the following with respect to a transfer or disposition described in Subsection (2)(a):
(A) an offer;
(B) a solicitation;
(C) an agreement; or
(D) performance of an agreement; or
(ii) a charitable solicitation.
(3) "Enforcing authority" means the Division of Consumer Protection.
(4) "Final judgment" means a judgment, including any supporting opinion, that determines the rights of the parties and concerning which appellate remedies have been exhausted or the time for appeal has expired.
(5) "Person" means an individual, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, cooperative, or any other legal entity.
(6) "Supplier" means a seller, lessor, assignor, offeror, broker, or other person who regularly solicits, engages in, or enforces consumer transactions, whether or not he deals directly with the consumer.

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13-11-4. Deceptive act or practice by supplier. (1) A deceptive act or practice by a supplier in connection with a consumer transaction violates this chapter whether it occurs before, during, or after the transaction.
(2) Without limiting the scope of Subsection (1), a supplier commits a deceptive act or practice if the supplier knowingly or intentionally:
(a) indicates that the subject of a consumer transaction has sponsorship, approval, performance characteristics, accessories, uses, or benefits, if it has not;
(b) indicates that the subject of a consumer transaction is of a particular standard, quality, grade, style, or model, if it is not;
(c) indicates that the subject of a consumer transaction is new, or unused, if it is not, or has been used to an extent that is materially different from the fact;
(d) indicates that the subject of a consumer transaction is available to the consumer for a reason that does not exist, including any of the following reasons falsely used in an advertisement:
(i) "going out of business";
(ii) "bankruptcy sale";
(iii) "lost our lease";
(iv) "building coming down";
(v) "forced out of business";
(vi) "final days";
(vii) "liquidation sale";
(viii) "fire sale";
(ix) "quitting business"; or
(x) an expression similar to any of the expressions in Subsections (2)(d)(i) through (ix);
(e) indicates that the subject of a consumer transaction has been supplied in accordance with a previous representation, if it has not;
(f) indicates that the subject of a consumer transaction will be supplied in greater quantity than the supplier intends;
(g) indicates that replacement or repair is needed, if it is not;
(h) indicates that a specific price advantage exists, if it does not;
(i) indicates that the supplier has a sponsorship, approval, or affiliation the supplier does not have;
(j) (i) indicates that a consumer transaction involves or does not involve a warranty, a disclaimer of warranties, particular warranty terms, or other rights, remedies, or obligations, if the representation is false; or
(ii) fails to honor a warranty or a particular warranty term;
(k) indicates that the consumer will receive a rebate, discount, or other benefit as an inducement for entering into a consumer transaction in return for giving the supplier the names of prospective consumers or otherwise helping the supplier to enter into other consumer transactions, if receipt of the benefit is contingent on an event occurring after the consumer enters into the transaction;
(l) after receipt of payment for goods or services, fails to ship the goods or furnish the services within the time advertised or otherwise represented or, if no specific time is advertised or represented, fails to ship the goods or furnish the services within 30 days, unless within the applicable time period the supplier provides the buyer with the option to:

(i) cancel the sales agreement and receive a refund of all previous payments to the supplier if the refund is mailed or delivered to the buyer within 10 business days after the day on which the seller receives written notification from the buyer of the buyer's intent to cancel the sales agreement and receive the refund; or
(ii) extend the shipping date to a specific date proposed by the supplier;
(m) except as provided in Subsection (3)(b), fails to furnish a notice meeting the requirements of Subsection (3)(a) of the purchaser's right to cancel a direct solicitation sale within three business days of the time of purchase if:
(i) the sale is made other than at the supplier's established place of business pursuant to the supplier's personal contact, whether through mail, electronic mail, facsimile transmission, telephone, or any other form of direct solicitation; and
(ii) the sale price exceeds $25;
(n) promotes, offers, or grants participation in a pyramid scheme as defined under Title 76, Chapter 6a, Pyramid Scheme Act;
(o) represents that the funds or property conveyed in response to a charitable solicitation will be donated or used for a particular purpose or will be donated to or used by a particular organization, if the representation is false;
(p) if a consumer indicates the consumer's intention of making a claim for a motor vehicle repair against the consumer's motor vehicle insurance policy:
(i) commences the repair without first giving the consumer oral and written notice of:
(A) the total estimated cost of the repair; and
(B) the total dollar amount the consumer is responsible to pay for the repair, which dollar amount may not exceed the applicable deductible or other copay arrangement in the consumer's insurance policy; or
(ii) requests or collects from a consumer an amount that exceeds the dollar amount a consumer was initially told the consumer was responsible to pay as an insurance deductible or other copay arrangement for a motor vehicle repair under Subsection (2)(p)(i), even if that amount is less than the full amount the motor vehicle insurance policy requires the insured to pay as a deductible or other copay arrangement, unless:
(A) the consumer's insurance company denies that coverage exists for the repair, in which case, the full amount of the repair may be charged and collected from the consumer; or
(B) the consumer misstates, before the repair is commenced, the amount of money the insurance policy requires the consumer to pay as a deductible or other copay arrangement, in which case, the supplier may charge and collect from the consumer an amount that does not exceed the amount the insurance policy requires the consumer to pay as a deductible or other copay arrangement;
(q) includes in any contract, receipt, or other written documentation of a consumer transaction, or any addendum to any contract, receipt, or other written documentation of a consumer transaction, any confession of judgment or any waiver of any of the rights to which a consumer is entitled under this chapter;
(r) charges a consumer for a consumer transaction that has not previously been agreed to by the consumer;
(s) solicits or enters into a consumer transaction with a person who lacks the mental ability to comprehend the nature and consequences of:
(i) the consumer transaction; or

(ii) the person's ability to benefit from the consumer transaction;
(t) solicits for the sale of a product or service by providing a consumer with an unsolicited check or negotiable instrument the presentment or negotiation of which obligates the consumer to purchase a product or service, unless the supplier is:
(i) a depository institution under Section 7-1-103;
(ii) an affiliate of a depository institution; or
(iii) an entity regulated under Title 7, Financial Institutions Act;
(u) sends an unsolicited mailing to a person that appears to be a billing, statement, or request for payment for a product or service the person has not ordered or used, or that implies that the mailing requests payment for an ongoing product or service the person has not received or requested;
(v) issues a gift certificate, instrument, or other record in exchange for payment to provide the bearer, upon presentation, goods or services in a specified amount without printing in a readable manner on the gift certificate, instrument, packaging, or record any expiration date or information concerning a fee to be charged and deducted from the balance of the gift certificate, instrument, or other record; or
(w) misrepresents the geographical origin or location of the supplier's business in connection with the sale of cut flowers, flower arrangements, or floral products.
(3) (a) The notice required by Subsection (2)(m) shall:
(i) be a conspicuous statement written in dark bold with at least 12 point type on the first page of the purchase documentation; and
(ii) read as follows: "YOU, THE BUYER, MAY CANCEL THIS CONTRACT AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY (or time period reflecting the supplier's cancellation policy but not less than three business days) AFTER THE DATE OF THE TRANSACTION OR RECEIPT OF THE PRODUCT, WHICHEVER IS LATER".
(b) A supplier is exempt from the requirements of Subsection (2)(m) if the supplier's cancellation policy:
(i) is communicated to the buyer; and
(ii) offers greater rights to the buyer than Subsection (2)(m).
(4) (a) A gift certificate, instrument, or other record that does not print an expiration date in accordance with Subsection (2)(v) does not expire.
(b) A gift certificate, instrument, or other record that does not include printed information concerning a fee to be charged and deducted from the balance of the gift certificate, instrument, or other record is not subject to the charging and deduction of the fee.
(c) Subsections (2)(v) and (4)(b) do not apply to a gift certificate, instrument, or other record useable at multiple, unaffiliated sellers of goods or services if an expiration date is printed on the gift certificate, instrument, or other record.
13-11-4. Deceptive act or practice by supplier. (1) A deceptive act or practice by a supplier in connection with a consumer transaction violates this chapter whether it occurs before, during, or after the transaction.
(2) Without limiting the scope of Subsection (1), a supplier commits a deceptive act or practice if the supplier knowingly or intentionally:
(a) indicates that the subject of a consumer transaction has sponsorship, approval, performance characteristics, accessories, uses, or benefits, if it has not;
(b) indicates that the subject of a consumer transaction is of a particular standard, quality, grade, style, or model, if it is not;
(c) indicates that the subject of a consumer transaction is new, or unused, if it is not, or has been used to an extent that is materially different from the fact;
(d) indicates that the subject of a consumer transaction is available to the consumer for a reason that does not exist, including any of the following reasons falsely used in an advertisement:
(i) "going out of business";
(ii) "bankruptcy sale";
(iii) "lost our lease";
(iv) "building coming down";
(v) "forced out of business";
(vi) "final days";
(vii) "liquidation sale";
(viii) "fire sale";
(ix) "quitting business"; or
(x) an expression similar to any of the expressions in Subsections (2)(d)(i) through (ix);
(e) indicates that the subject of a consumer transaction has been supplied in accordance with a previous representation, if it has not;
(f) indicates that the subject of a consumer transaction will be supplied in greater quantity than the supplier intends;
(g) indicates that replacement or repair is needed, if it is not;
(h) indicates that a specific price advantage exists, if it does not;
(i) indicates that the supplier has a sponsorship, approval, or affiliation the supplier does not have;
(j) (i) indicates that a consumer transaction involves or does not involve a warranty, a disclaimer of warranties, particular warranty terms, or other rights, remedies, or obligations, if the representation is false; or
(ii) fails to honor a warranty or a particular warranty term;
(k) indicates that the consumer will receive a rebate, discount, or other benefit as an inducement for entering into a consumer transaction in return for giving the supplier the names of prospective consumers or otherwise helping the supplier to enter into other consumer transactions, if receipt of the benefit is contingent on an event occurring after the consumer enters into the transaction;
(l) after receipt of payment for goods or services, fails to ship the goods or furnish the services within the time advertised or otherwise represented or, if no specific time is advertised or represented, fails to ship the goods or furnish the services within 30 days, unless within the applicable time period the supplier provides the buyer with the option to:

(i) cancel the sales agreement and receive a refund of all previous payments to the supplier if the refund is mailed or delivered to the buyer within 10 business days after the day on which the seller receives written notification from the buyer of the buyer's intent to cancel the sales agreement and receive the refund; or
(ii) extend the shipping date to a specific date proposed by the supplier;
(m) except as provided in Subsection (3)(b), fails to furnish a notice meeting the requirements of Subsection (3)(a) of the purchaser's right to cancel a direct solicitation sale within three business days of the time of purchase if:
(i) the sale is made other than at the supplier's established place of business pursuant to the supplier's personal contact, whether through mail, electronic mail, facsimile transmission, telephone, or any other form of direct solicitation; and
(ii) the sale price exceeds $25;
(n) promotes, offers, or grants participation in a pyramid scheme as defined under Title 76, Chapter 6a, Pyramid Scheme Act;
(o) represents that the funds or property conveyed in response to a charitable solicitation will be donated or used for a particular purpose or will be donated to or used by a particular organization, if the representation is false;
(p) if a consumer indicates the consumer's intention of making a claim for a motor vehicle repair against the consumer's motor vehicle insurance policy:
(i) commences the repair without first giving the consumer oral and written notice of:
(A) the total estimated cost of the repair; and
(B) the total dollar amount the consumer is responsible to pay for the repair, which dollar amount may not exceed the applicable deductible or other copay arrangement in the consumer's insurance policy; or
(ii) requests or collects from a consumer an amount that exceeds the dollar amount a consumer was initially told the consumer was responsible to pay as an insurance deductible or other copay arrangement for a motor vehicle repair under Subsection (2)(p)(i), even if that amount is less than the full amount the motor vehicle insurance policy requires the insured to pay as a deductible or other copay arrangement, unless:
(A) the consumer's insurance company denies that coverage exists for the repair, in which case, the full amount of the repair may be charged and collected from the consumer; or
(B) the consumer misstates, before the repair is commenced, the amount of money the insurance policy requires the consumer to pay as a deductible or other copay arrangement, in which case, the supplier may charge and collect from the consumer an amount that does not exceed the amount the insurance policy requires the consumer to pay as a deductible or other copay arrangement;
(q) includes in any contract, receipt, or other written documentation of a consumer transaction, or any addendum to any contract, receipt, or other written documentation of a consumer transaction, any confession of judgment or any waiver of any of the rights to which a consumer is entitled under this chapter;
(r) charges a consumer for a consumer transaction that has not previously been agreed to by the consumer;
(s) solicits or enters into a consumer transaction with a person who lacks the mental ability to comprehend the nature and consequences of:
(i) the consumer transaction; or

(ii) the person's ability to benefit from the consumer transaction;
(t) solicits for the sale of a product or service by providing a consumer with an unsolicited check or negotiable instrument the presentment or negotiation of which obligates the consumer to purchase a product or service, unless the supplier is:
(i) a depository institution under Section 7-1-103;
(ii) an affiliate of a depository institution; or
(iii) an entity regulated under Title 7, Financial Institutions Act;
(u) sends an unsolicited mailing to a person that appears to be a billing, statement, or request for payment for a product or service the person has not ordered or used, or that implies that the mailing requests payment for an ongoing product or service the person has not received or requested;
(v) issues a gift certificate, instrument, or other record in exchange for payment to provide the bearer, upon presentation, goods or services in a specified amount without printing in a readable manner on the gift certificate, instrument, packaging, or record any expiration date or information concerning a fee to be charged and deducted from the balance of the gift certificate, instrument, or other record; or
(w) misrepresents the geographical origin or location of the supplier's business in connection with the sale of cut flowers, flower arrangements, or floral products.
(3) (a) The notice required by Subsection (2)(m) shall:
(i) be a conspicuous statement written in dark bold with at least 12 point type on the first page of the purchase documentation; and
(ii) read as follows: "YOU, THE BUYER, MAY CANCEL THIS CONTRACT AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY (or time period reflecting the supplier's cancellation policy but not less than three business days) AFTER THE DATE OF THE TRANSACTION OR RECEIPT OF THE PRODUCT, WHICHEVER IS LATER".
(b) A supplier is exempt from the requirements of Subsection (2)(m) if the supplier's cancellation policy:
(i) is communicated to the buyer; and
(ii) offers greater rights to the buyer than Subsection (2)(m).
(4) (a) A gift certificate, instrument, or other record that does not print an expiration date in accordance with Subsection (2)(v) does not expire.
(b) A gift certificate, instrument, or other record that does not include printed information concerning a fee to be charged and deducted from the balance of the gift certificate, instrument, or other record is not subject to the charging and deduction of the fee.
(c) Subsections (2)(v) and (4)(b) do not apply to a gift certificate, instrument, or other record useable at multiple, unaffiliated sellers of goods or services if an expiration date is printed on the gift certificate, instrument, or other record.

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13-11-5. Unconscionable act or practice by supplier. (1) An unconscionable act or practice by a supplier in connection with a consumer transaction violates this act whether it occurs before, during, or after the transaction.
(2) The unconscionability of an act or practice is a question of law for the court. If it is claimed or appears to the court that an act or practice may be unconscionable, the parties shall be given a reasonable opportunity to present evidence as to its setting, purpose, and effect to aid the court in making its determination.
(3) In determining whether an act or practice is unconscionable, the court shall consider circumstances which the supplier knew or had reason to know.
13-11-5. Unconscionable act or practice by supplier. (1) An unconscionable act or practice by a supplier in connection with a consumer transaction violates this act whether it occurs before, during, or after the transaction.
(2) The unconscionability of an act or practice is a question of law for the court. If it is claimed or appears to the court that an act or practice may be unconscionable, the parties shall be given a reasonable opportunity to present evidence as to its setting, purpose, and effect to aid the court in making its determination.
(3) In determining whether an act or practice is unconscionable, the court shall consider circumstances which the supplier knew or had reason to know.

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13-11-6. Service of process.In addition to any other method provided by rule or statute, personal jurisdiction over a supplier may be acquired in a civil action or proceeding instituted in the district court by the service of process in the following manner. If a supplier engages in any act or practice in this state governed by this act, or engages in a consumer transaction subject to this act, he may designate an agent upon whom service of process may be made in this state. The agent shall be a resident of or a corporation authorized to do business in this state. The designation shall be in writing and filed with the Division of Corporations and Commercial Code. If no designation is made and filed, or if process cannot be served in this state upon the designated agent, whether or not the supplier is a resident of this state or is authorized to do business in this state, process may be served upon the director of the Division of Corporations and Commercial Code, but service upon him is not effective unless the plaintiff promptly mails a copy of the process and pleadings by registered or certified mail to the defendant at his last reasonably ascertainable address. An affidavit of compliance with this section shall be filed with the clerk of the court on or before the return day of the process, if any, or within any future time the court allows. 13-11-6. Service of process.In addition to any other method provided by rule or statute, personal jurisdiction over a supplier may be acquired in a civil action or proceeding instituted in the district court by the service of process in the following manner. If a supplier engages in any act or practice in this state governed by this act, or engages in a consumer transaction subject to this act, he may designate an agent upon whom service of process may be made in this state. The agent shall be a resident of or a corporation authorized to do business in this state. The designation shall be in writing and filed with the Division of Corporations and Commercial Code. If no designation is made and filed, or if process cannot be served in this state upon the designated agent, whether or not the supplier is a resident of this state or is authorized to do business in this state, process may be served upon the director of the Division of Corporations and Commercial Code, but service upon him is not effective unless the plaintiff promptly mails a copy of the process and pleadings by registered or certified mail to the defendant at his last reasonably ascertainable address. An affidavit of compliance with this section shall be filed with the clerk of the court on or before the return day of the process, if any, or within any future time the court allows.

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13-11-7. Duties of enforcing authority -- Confidentiality of identity of persons investigated -- Civil penalty for violation of restraining or injunctive orders.(1) The enforcing authority shall:
(a) enforce this chapter throughout the state;
(b) cooperate with state and local officials, officials of other states, and officials of the federal government in the administration of comparable statutes;
(c) inform consumers and suppliers on a continuing basis of the provisions of this chapter and of acts or practices that violate this chapter including mailing information concerning final judgments to persons who request it, for which he may charge a reasonable fee to cover the expense;
(d) receive and act on complaints; and
(e) maintain a public file of final judgments rendered under this chapter that have been either reported officially or made available for public dissemination under Subsection (1)(c), final consent judgments, and to the extent the enforcing authority considers appropriate, assurances of voluntary compliance.
(2) In carrying out his duties, the enforcing authority may not publicly disclose the identity of a person investigated unless his identity has become a matter of public record in an enforcement proceeding or he has consented to public disclosure.
(3) On motion of the enforcing authority, or on its own motion, the court may impose a civil penalty of not more than $5,000 for each day a temporary restraining order, preliminary injunction, or permanent injunction issued under this chapter is violated, if the supplier received notice of the restraining or injunctive order. Civil penalties imposed under this section shall be paid to the General Fund.
13-11-7. Duties of enforcing authority -- Confidentiality of identity of persons investigated -- Civil penalty for violation of restraining or injunctive orders.(1) The enforcing authority shall:
(a) enforce this chapter throughout the state;
(b) cooperate with state and local officials, officials of other states, and officials of the federal government in the administration of comparable statutes;
(c) inform consumers and suppliers on a continuing basis of the provisions of this chapter and of acts or practices that violate this chapter including mailing information concerning final judgments to persons who request it, for which he may charge a reasonable fee to cover the expense;
(d) receive and act on complaints; and
(e) maintain a public file of final judgments rendered under this chapter that have been either reported officially or made available for public dissemination under Subsection (1)(c), final consent judgments, and to the extent the enforcing authority considers appropriate, assurances of voluntary compliance.
(2) In carrying out his duties, the enforcing authority may not publicly disclose the identity of a person investigated unless his identity has become a matter of public record in an enforcement proceeding or he has consented to public disclosure.
(3) On motion of the enforcing authority, or on its own motion, the court may impose a civil penalty of not more than $5,000 for each day a temporary restraining order, preliminary injunction, or permanent injunction issued under this chapter is violated, if the supplier received notice of the restraining or injunctive order. Civil penalties imposed under this section shall be paid to the General Fund.

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13-11-8. Powers of enforcing authority.(1) The enforcing authority may conduct research, hold public hearings, make inquiries, and publish studies relating to consumer sales acts or practices.
(2) The enforcing authority shall adopt substantive rules that prohibit with specificity acts or practices that violate Section 13-11-4 and appropriate procedural rules.
13-11-8. Powers of enforcing authority.(1) The enforcing authority may conduct research, hold public hearings, make inquiries, and publish studies relating to consumer sales acts or practices.
(2) The enforcing authority shall adopt substantive rules that prohibit with specificity acts or practices that violate Section 13-11-4 and appropriate procedural rules.

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13-11-9. Rule-making requirements.(1) In addition to complying with other rule-making requirements imposed by this act, the enforcing authority shall:
(a) adopt as a rule a description of the organization of his office, stating the general course and method of operation of his office and method whereby the public may obtain information or make submissions or requests;
(b) adopt rules of practice setting forth the nature and requirements of all formal and informal procedures available, including a description of the forms and instructions used by the enforcing authority of his office; and
(c) make available for public inspection all rules, written statements of policy, and interpretations formulated, adopted, or used by the enforcing authority in discharging his functions.
(2) A rule of the enforcing authority is invalid, and may not be invoked by the enforcing authority for any purpose, until it has been made available for public inspection under Subsection (1). This provision does not apply to a person who has knowledge of a rule before engaging in an act or practice that violates this act.
13-11-9. Rule-making requirements.(1) In addition to complying with other rule-making requirements imposed by this act, the enforcing authority shall:
(a) adopt as a rule a description of the organization of his office, stating the general course and method of operation of his office and method whereby the public may obtain information or make submissions or requests;
(b) adopt rules of practice setting forth the nature and requirements of all formal and informal procedures available, including a description of the forms and instructions used by the enforcing authority of his office; and
(c) make available for public inspection all rules, written statements of policy, and interpretations formulated, adopted, or used by the enforcing authority in discharging his functions.
(2) A rule of the enforcing authority is invalid, and may not be invoked by the enforcing authority for any purpose, until it has been made available for public inspection under Subsection (1). This provision does not apply to a person who has knowledge of a rule before engaging in an act or practice that violates this act.

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13-11-16. Investigatory powers of enforcing authority. (1) If, by his own inquiries or as a result of complaints, the enforcing authority 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 act, he may administer oaths and affirmations, subpoena witnesses or matter, and collect evidence.
(2) If matter that the enforcing authority subpoenas is located outside this state, the person subpoenaed may either make it available to the enforcing authority at a convenient location within the state or pay the reasonable and necessary expenses for the enforcing authority or his representative to examine the matter at the place where it is located. The enforcing authority may designate representatives, including officials of the state in which the matter is located, to inspect the matter on his behalf, and he 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 enforcing authority 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 pursuant to Title 77, Chapter 22b, Grants of Immunity.
13-11-16. Investigatory powers of enforcing authority. (1) If, by his own inquiries or as a result of complaints, the enforcing authority 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 act, he may administer oaths and affirmations, subpoena witnesses or matter, and collect evidence.
(2) If matter that the enforcing authority subpoenas is located outside this state, the person subpoenaed may either make it available to the enforcing authority at a convenient location within the state or pay the reasonable and necessary expenses for the enforcing authority or his representative to examine the matter at the place where it is located. The enforcing authority may designate representatives, including officials of the state in which the matter is located, to inspect the matter on his behalf, and he 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 enforcing authority 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 pursuant to Title 77, Chapter 22b, Grants of Immunity.

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13-11-17. Actions by enforcing authority. (1) The enforcing authority may bring an action:
(a) to obtain a declaratory judgment that an act or practice violates this chapter;
(b) to enjoin, in accordance with the principles of equity, a supplier who has violated, is violating, or is otherwise likely to violate this chapter; and
(c) to recover, for each violation, actual damages, or obtain relief under Subsection (2)(b), on behalf of consumers who complained to the enforcing authority within a reasonable time after it instituted proceedings under this chapter.
(2) (a) The enforcing authority 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 enforcing authority under Subsection 13-11-8(2) 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 enforcing authority 10 days before the consumer transactions on which the action is based, or, with respect to a supplier who agreed to it, 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 enforcing authority 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. An appropriate order may include an order:
(A) to reimburse consumers found to have been damaged;
(B) to carry out a transaction in accordance with consumers' reasonable expectations;
(C) to strike or limit the application of unconscionable clauses of contracts to avoid an unconscionable result; or
(D) to grant other appropriate relief.
(ii) 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 pursuant to Title 67, Chapter 4a, 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.
(e) An action may not be brought by the enforcing authority under this Subsection (2) more than two years after the occurrence of a violation of this chapter.
(3) (a) The enforcing authority 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. Acceptance of an assurance may be conditioned on a commitment to reimburse consumers or take other appropriate corrective action.
(b) An assurance is not evidence of a prior violation of this chapter. 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 its other enforcement powers under Title 13, 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 administrative fines imposed under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.
13-11-17. Actions by enforcing authority. (1) The enforcing authority may bring an action:
(a) to obtain a declaratory judgment that an act or practice violates this chapter;
(b) to enjoin, in accordance with the principles of equity, a supplier who has violated, is violating, or is otherwise likely to violate this chapter; and
(c) to recover, for each violation, actual damages, or obtain relief under Subsection (2)(b), on behalf of consumers who complained to the enforcing authority within a reasonable time after it instituted proceedings under this chapter.
(2) (a) The enforcing authority 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 enforcing authority under Subsection 13-11-8(2) 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 enforcing authority 10 days before the consumer transactions on which the action is based, or, with respect to a supplier who agreed to it, 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 enforcing authority 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. An appropriate order may include an order:
(A) to reimburse consumers found to have been damaged;
(B) to carry out a transaction in accordance with consumers' reasonable expectations;
(C) to strike or limit the application of unconscionable clauses of contracts to avoid an unconscionable result; or
(D) to grant other appropriate relief.
(ii) 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 pursuant to Title 67, Chapter 4a, 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.
(e) An action may not be brought by the enforcing authority under this Subsection (2) more than two years after the occurrence of a violation of this chapter.
(3) (a) The enforcing authority 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. Acceptance of an assurance may be conditioned on a commitment to reimburse consumers or take other appropriate corrective action.
(b) An assurance is not evidence of a prior violation of this chapter. 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 its other enforcement powers under Title 13, 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 administrative fines imposed under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.

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13-11-17.5. Costs and attorney's fees. Any judgment granted in favor of the enforcing authority in connection with the enforcement of this chapter shall include, in addition to any other monetary award or injunctive relief, an award of reasonable attorney's fees, court costs, and costs of investigation. 13-11-17.5. Costs and attorney's fees. Any judgment granted in favor of the enforcing authority in connection with the enforcement of this chapter shall include, in addition to any other monetary award or injunctive relief, an award of reasonable attorney's fees, court costs, and costs of investigation.

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13-11-18. Noncompliance by supplier subject to other state supervision -- Cooperation of enforcing authority and other official or agency. (1) If the enforcing authority receives a complaint or other information relating to noncompliance with this act by a supplier who is subject to other supervision in this state, the enforcing authority shall inform the official or agency having that supervision. The enforcing authority may request information about suppliers from the official or agency.
(2) The enforcing authority and any other official or agency in this state having supervisory authority over a supplier shall consult and assist each other in maintaining compliance with this act. Within the scope of their authority, they may jointly or separately make investigations, prosecute suits, and take other official action they consider appropriate.
13-11-18. Noncompliance by supplier subject to other state supervision -- Cooperation of enforcing authority and other official or agency. (1) If the enforcing authority receives a complaint or other information relating to noncompliance with this act by a supplier who is subject to other supervision in this state, the enforcing authority shall inform the official or agency having that supervision. The enforcing authority may request information about suppliers from the official or agency.
(2) The enforcing authority and any other official or agency in this state having supervisory authority over a supplier shall consult and assist each other in maintaining compliance with this act. Within the scope of their authority, they may jointly or separately make investigations, prosecute suits, and take other official action they consider appropriate.

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13-11-19. Actions by consumer. (1) Whether he seeks or is entitled to damages or otherwise has an adequate remedy at law, a consumer may bring an action to:
(a) obtain a declaratory judgment that an act or practice violates this chapter; and
(b) enjoin, in accordance with the principles of equity, a supplier who has violated, is violating, or is likely to violate this chapter.
(2) A consumer who suffers loss as a result of a violation of this chapter may recover, but not in a class action, actual damages or $2,000, whichever is greater, plus court costs.
(3) Whether a consumer seeks or is entitled to recover damages or has an adequate remedy at law, he may bring a class action for declaratory judgment, an injunction, and appropriate ancillary relief against an act or practice that violates this chapter.
(4) (a) A consumer who suffers loss as a result of a violation of this chapter may bring a class action for the actual damages caused by an act or practice specified as violating this chapter by a rule adopted by the enforcing authority under Subsection 13-11-8(2) before the consumer transactions on which the action is based, or declared to violate Section 13-11-4 or 13-11-5 by a final judgment of the appropriate court or courts of general jurisdiction and appellate courts of this state that was either officially reported or made available for public dissemination under Subsection 13-11-7(1)(c) by the enforcing authority 10 days before the consumer transactions on which the action is based, or with respect to a supplier who agreed to it, was prohibited specifically by the terms of a consent judgment which became final before the consumer transactions on which the action is based.
(b) If an act or practice that violates this chapter unjustly enriches a supplier and the damages can be computed with reasonable certainty, damages recoverable on behalf of consumers who cannot be located with due diligence shall be transferred to the state treasurer pursuant to Title 67, Chapter 4a, Unclaimed Property Act.
(c) If a supplier shows by a preponderance of the evidence that a violation of this chapter resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid the error, recovery under this section is limited to the amount, if any, in which the supplier was unjustly enriched by the violation.
(5) Except for services performed by the enforcing authority, the court may award to the prevailing party a reasonable attorney's fee limited to the work reasonably performed if:
(a) the consumer complaining of the act or practice that violates this chapter has brought or maintained an action he knew to be groundless; or a supplier has committed an act or practice that violates this chapter; and
(b) an action under this section has been terminated by a judgment or required by the court to be settled under Subsection 13-11-21(1)(a).
(6) Except for consent judgment entered before testimony is taken, a final judgment in favor of the enforcing authority under Section 13-11-17 is admissible as prima facie evidence of the facts on which it is based in later proceedings under this section against the same person or a person in privity with him.
(7) When a judgment under this section becomes final, the prevailing party shall mail a copy to the enforcing authority for inclusion in the public file maintained under Subsection 13-11-7(1)(e).
(8) An action under this section shall be brought within two years after occurrence of a violation of this chapter, or within one year after the termination of proceedings by the enforcing

authority with respect to a violation of this chapter, whichever is later. When a supplier sues a consumer, he may assert as a counterclaim any claim under this chapter arising out of the transaction on which suit is brought.
13-11-19. Actions by consumer. (1) Whether he seeks or is entitled to damages or otherwise has an adequate remedy at law, a consumer may bring an action to:
(a) obtain a declaratory judgment that an act or practice violates this chapter; and
(b) enjoin, in accordance with the principles of equity, a supplier who has violated, is violating, or is likely to violate this chapter.
(2) A consumer who suffers loss as a result of a violation of this chapter may recover, but not in a class action, actual damages or $2,000, whichever is greater, plus court costs.
(3) Whether a consumer seeks or is entitled to recover damages or has an adequate remedy at law, he may bring a class action for declaratory judgment, an injunction, and appropriate ancillary relief against an act or practice that violates this chapter.
(4) (a) A consumer who suffers loss as a result of a violation of this chapter may bring a class action for the actual damages caused by an act or practice specified as violating this chapter by a rule adopted by the enforcing authority under Subsection 13-11-8(2) before the consumer transactions on which the action is based, or declared to violate Section 13-11-4 or 13-11-5 by a final judgment of the appropriate court or courts of general jurisdiction and appellate courts of this state that was either officially reported or made available for public dissemination under Subsection 13-11-7(1)(c) by the enforcing authority 10 days before the consumer transactions on which the action is based, or with respect to a supplier who agreed to it, was prohibited specifically by the terms of a consent judgment which became final before the consumer transactions on which the action is based.
(b) If an act or practice that violates this chapter unjustly enriches a supplier and the damages can be computed with reasonable certainty, damages recoverable on behalf of consumers who cannot be located with due diligence shall be transferred to the state treasurer pursuant to Title 67, Chapter 4a, Unclaimed Property Act.
(c) If a supplier shows by a preponderance of the evidence that a violation of this chapter resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid the error, recovery under this section is limited to the amount, if any, in which the supplier was unjustly enriched by the violation.
(5) Except for services performed by the enforcing authority, the court may award to the prevailing party a reasonable attorney's fee limited to the work reasonably performed if:
(a) the consumer complaining of the act or practice that violates this chapter has brought or maintained an action he knew to be groundless; or a supplier has committed an act or practice that violates this chapter; and
(b) an action under this section has been terminated by a judgment or required by the court to be settled under Subsection 13-11-21(1)(a).
(6) Except for consent judgment entered before testimony is taken, a final judgment in favor of the enforcing authority under Section 13-11-17 is admissible as prima facie evidence of the facts on which it is based in later proceedings under this section against the same person or a person in privity with him.
(7) When a judgment under this section becomes final, the prevailing party shall mail a copy to the enforcing authority for inclusion in the public file maintained under Subsection 13-11-7(1)(e).
(8) An action under this section shall be brought within two years after occurrence of a violation of this chapter, or within one year after the termination of proceedings by the enforcing

authority with respect to a violation of this chapter, whichever is later. When a supplier sues a consumer, he may assert as a counterclaim any claim under this chapter arising out of the transaction on which suit is brought.

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13-11-20. Class actions. (1) An action may be maintained as a class action under this act only if:
(a) the class is so numerous that joinder of all members is impracticable;
(b) there are questions of law or fact common to the class;
(c) the claims or defenses of the representative parties are typical of the claims or defenses of the class;
(d) the representative parties will fairly and adequately protect the interests of the class; and
(e) either:
(i) the prosecution of separate actions by or against individual members of the class would create a risk of:
(A) inconsistent or varying adjudications with respect to individual members of the class which would establish incompatible standards of conduct for the party opposing the class; or
(B) adjudications with respect to individual members of the class that would as a practical matter dispose of the interests of the other members not parties to the adjudications or substantially impair or impede their ability to protect their interests; or
(ii) the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole; or
(iii) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy.
(2) The matters pertinent to the findings under Subsection (1)(e)(iii) include:
(a) the interest of members of the class in individually controlling the prosecution or defense of separate actions;
(b) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class;
(c) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; and
(d) the difficulties likely to be encountered in the management of a class action.
(3) As soon as practicable after the commencement of an action brought as a class action, the court shall determine by order whether it is to be so maintained. An order under this subsection may be conditional, and it may be amended before decision on the merits.
(4) In a class action maintained under Subsection (1)(e) the court may direct to the members of the class the best notice practicable under the circumstances, including individual notice to each member who can be identified through reasonable effort. The notice shall advise each member that:
(a) the court will exclude him from the class, unless he requests inclusion, by a specified date;
(b) the judgment, whether favorable or not, will include all members who request inclusion; and
(c) a member who requests inclusion may, if he desires, enter an appearance through his counsel.
(5) When appropriate, an action may be brought or maintained as a class action with respect to particular issues, or a class may be divided into subclasses and each subclass treated as

a class.
(6) In the conduct of a class action the court may make appropriate orders:
(a) determining the course of proceedings or prescribing measures to prevent undue repetition or complication in the presentation of evidence or argument;
(b) requiring, for the protection of the members of the class or otherwise for the fair conduct of the action, that notice be given in the manner the court directs to some or all of the members or to the enforcing authority of any step in the action, or of the proposed extent of the judgment, or of the opportunity of members to signify whether they consider the representation fair and adequate, to intervene and present claims or defenses, or otherwise to come into the action;
(c) imposing conditions on the representative parties or on intervenors;
(d) requiring that the pleadings be amended to eliminate allegations as to representation of absent persons, and that the action proceed accordingly; or
(e) dealing with similar procedural matters.
(7) A class action may not be dismissed or compromised without approval of the court. Notice of the proposed dismissal or compromise shall be given to all members of the class as the court directs.
(8) The judgment in an action maintained as a class action under Subsection (1)(e)(i) or (ii), whether or not favorable to the class, shall describe those whom the court finds to be members of the class. The judgment in a class action under Subsection (1)(e)(iii), whether or not favorable to the class, shall specify or describe those to whom the notice provided in Subsection (4) was directed, and who have requested inclusion, and whom the court finds to be members of the class.
     13-11-20.   Class actions. (1) An action may be maintained as a class action under this act only if:
(a) the class is so numerous that joinder of all members is impracticable;
(b) there are questions of law or fact common to the class;
(c) the claims or defenses of the representative parties are typical of the claims or defenses of the class;
(d) the representative parties will fairly and adequately protect the interests of the class; and
(e) either:
(i) the prosecution of separate actions by or against individual members of the class would create a risk of:
(A) inconsistent or varying adjudications with respect to individual members of the class which would establish incompatible standards of conduct for the party opposing the class; or
(B) adjudications with respect to individual members of the class that would as a practical matter dispose of the interests of the other members not parties to the adjudications or substantially impair or impede their ability to protect their interests; or
(ii) the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole; or
(iii) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy.
(2) The matters pertinent to the findings under Subsection (1)(e)(iii) include:
(a) the interest of members of the class in individually controlling the prosecution or defense of separate actions;
(b) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class;
(c) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; and
(d) the difficulties likely to be encountered in the management of a class action.
(3) As soon as practicable after the commencement of an action brought as a class action, the court shall determine by order whether it is to be so maintained. An order under this subsection may be conditional, and it may be amended before decision on the merits.
(4) In a class action maintained under Subsection (1)(e) the court may direct to the members of the class the best notice practicable under the circumstances, including individual notice to each member who can be identified through reasonable effort. The notice shall advise each member that:
(a) the court will exclude him from the class, unless he requests inclusion, by a specified date;
(b) the judgment, whether favorable or not, will include all members who request inclusion; and
(c) a member who requests inclusion may, if he desires, enter an appearance through his counsel.
(5) When appropriate, an action may be brought or maintained as a class action with respect to particular issues, or a class may be divided into subclasses and each subclass treated as

a class.
(6) In the conduct of a class action the court may make appropriate orders:
(a) determining the course of proceedings or prescribing measures to prevent undue repetition or complication in the presentation of evidence or argument;
(b) requiring, for the protection of the members of the class or otherwise for the fair conduct of the action, that notice be given in the manner the court directs to some or all of the members or to the enforcing authority of any step in the action, or of the proposed extent of the judgment, or of the opportunity of members to signify whether they consider the representation fair and adequate, to intervene and present claims or defenses, or otherwise to come into the action;
(c) imposing conditions on the representative parties or on intervenors;
(d) requiring that the pleadings be amended to eliminate allegations as to representation of absent persons, and that the action proceed accordingly; or
(e) dealing with similar procedural matters.
(7) A class action may not be dismissed or compromised without approval of the court. Notice of the proposed dismissal or compromise shall be given to all members of the class as the court directs.
(8) The judgment in an action maintained as a class action under Subsection (1)(e)(i) or (ii), whether or not favorable to the class, shall describe those whom the court finds to be members of the class. The judgment in a class action under Subsection (1)(e)(iii), whether or not favorable to the class, shall specify or describe those to whom the notice provided in Subsection (4) was directed, and who have requested inclusion, and whom the court finds to be members of the class.

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13-11-21. Settlement of class action -- Complaint in class action delivered to enforcing authority. (1) (a) A defendant in a class action may file a written offer of settlement. If it is not accepted within a reasonable time by a plaintiff class representative, the defendant may file an affidavit reciting the rejection. The court may determine that the offer has enough merit to present to the members of the class. If it so determines, it shall order a hearing to determine whether the offer should be approved. It shall give the best notice of the hearing that is practicable under the circumstances, including notice to each member who can be identified through reasonable effort. The notice shall specify the terms of the offer and a reasonable period within which members of the class who request it are entitled to be included in the class. The statute of limitations for those who are excluded pursuant to this Subsection (1) is tolled for the period the class action has been pending, plus an additional year.
(b) If a member who has previously lost an opportunity to be excluded from the class is excluded at his request in response to notice of the offer of settlement during the period specified under Subsection (1)(a), he may not thereafter participate in a class action for damages respecting the same consumer transaction, unless the court later disapproves the offer of settlement or approves a settlement materially different from that proposed in the original offer of settlement. After the expiration of the period of limitations, a member of the class is not entitled to be excluded from it.
(c) If the court later approves the offer of settlement, including changes, if any, required by the court in the interest of a just settlement of the action, it shall enter judgment, which is binding on all persons who are then members of the class. If the court disapproves the offer or approves a settlement materially different from that proposed in the original offer, notice shall be given to a person who was excluded from the action at his request in response to notice of the offer under Subsection (1)(a), and he is entitled to rejoin the class and, in the case of the approval, participate in the settlement.
(2) On the commencement of a class action under Section 13-11-19, the class representative shall mail by certified mail with return receipt requested or personally serve a copy of the complaint on the enforcing authority. Within 30 days after the receipt of a copy of the complaint, but not thereafter, the enforcing authority may intervene in the class action.
13-11-21. Settlement of class action -- Complaint in class action delivered to enforcing authority. (1) (a) A defendant in a class action may file a written offer of settlement. If it is not accepted within a reasonable time by a plaintiff class representative, the defendant may file an affidavit reciting the rejection. The court may determine that the offer has enough merit to present to the members of the class. If it so determines, it shall order a hearing to determine whether the offer should be approved. It shall give the best notice of the hearing that is practicable under the circumstances, including notice to each member who can be identified through reasonable effort. The notice shall specify the terms of the offer and a reasonable period within which members of the class who request it are entitled to be included in the class. The statute of limitations for those who are excluded pursuant to this Subsection (1) is tolled for the period the class action has been pending, plus an additional year.
(b) If a member who has previously lost an opportunity to be excluded from the class is excluded at his request in response to notice of the offer of settlement during the period specified under Subsection (1)(a), he may not thereafter participate in a class action for damages respecting the same consumer transaction, unless the court later disapproves the offer of settlement or approves a settlement materially different from that proposed in the original offer of settlement. After the expiration of the period of limitations, a member of the class is not entitled to be excluded from it.
(c) If the court later approves the offer of settlement, including changes, if any, required by the court in the interest of a just settlement of the action, it shall enter judgment, which is binding on all persons who are then members of the class. If the court disapproves the offer or approves a settlement materially different from that proposed in the original offer, notice shall be given to a person who was excluded from the action at his request in response to notice of the offer under Subsection (1)(a), and he is entitled to rejoin the class and, in the case of the approval, participate in the settlement.
(2) On the commencement of a class action under Section 13-11-19, the class representative shall mail by certified mail with return receipt requested or personally serve a copy of the complaint on the enforcing authority. Within 30 days after the receipt of a copy of the complaint, but not thereafter, the enforcing authority may intervene in the class action.

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13-11-22. Exemptions from application of act. (1) This act does not apply to:
(a) an act or practice required or specifically permitted by or under federal law, or by or under state law;
(b) a publisher, broadcaster, printer, or other person engaged in the dissemination of information or the reproduction of printed or pictorial matter so far as the information or matter has been disseminated or reproduced on behalf of others without actual knowledge that it violated this act;
(c) claim for personal injury or death or claim for damage to property other than the property that is the subject of the consumer transaction;
(d) credit terms of a transaction otherwise subject to this act; or
(e) any public utility subject to the regulating jurisdiction of the Public Service Commission of the state of Utah.
(2) A person alleged to have violated this act has the burden of showing the applicability of this section.
13-11-22. Exemptions from application of act. (1) This act does not apply to:
(a) an act or practice required or specifically permitted by or under federal law, or by or under state law;
(b) a publisher, broadcaster, printer, or other person engaged in the dissemination of information or the reproduction of printed or pictorial matter so far as the information or matter has been disseminated or reproduced on behalf of others without actual knowledge that it violated this act;
(c) claim for personal injury or death or claim for damage to property other than the property that is the subject of the consumer transaction;
(d) credit terms of a transaction otherwise subject to this act; or
(e) any public utility subject to the regulating jurisdiction of the Public Service Commission of the state of Utah.
(2) A person alleged to have violated this act has the burden of showing the applicability of this section.

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13-11-23. Other remedies available -- Class action only as prescribed by act. The remedies of this act are in addition to remedies otherwise available for the same conduct under state or local law, except that a class action relating to a transaction governed by this act may be brought only as prescribed by this act.13-11-23. Other remedies available -- Class action only as prescribed by act. The remedies of this act are in addition to remedies otherwise available for the same conduct under state or local law, except that a class action relating to a transaction governed by this act may be brought only as prescribed by this act.

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13-21-1. Short title. This chapter is known as the "Credit Services Organizations Act." 13-21-1. Short title. This chapter is known as the "Credit Services Organizations Act."

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13-21-2. 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 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.
(3) (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); 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 real estate broker by this state 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) within the course and scope of the person's practice as an attorney; and
(B) the services described in Subsection (3)(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) 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.
(4) "Extension of credit" means the right to defer payment of debt or to incur debt and defer its payment, offered or granted primarily for personal, family, or household purposes.
13-21-2. 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 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.
(3) (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); 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 real estate broker by this state 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) within the course and scope of the person's practice as an attorney; and
(B) the services described in Subsection (3)(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) 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.
(4) "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.

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13-21-3. Credit services organizations -- Prohibitions. (1) A credit services organization, its 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;
(b) make a false statement, or fail to state a material fact, in connection with an application for registration with the division;
(c) 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) 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) 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) 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) 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
(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) 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.
13-21-3. Credit services organizations -- Prohibitions. (1) A credit services organization, its 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;
(b) make a false statement, or fail to state a material fact, in connection with an application for registration with the division;
(c) 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) 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) 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) 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) 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
(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) 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.

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13-21-3.5. 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. The application shall include:
(a) the name, complete address, and telephone number of the organization;
(b) the name of any person who owns or controls more than 5% of the 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 organization;
(d) (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) 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 Section 13-21-2(3)(a); or
(ii) a notarized statement of the credit services organization's chief executive officer or principal that neither the organization nor any person identified in Subsection (1)(b) or (c) is a party to any administrative, civil, or criminal action described in Subsection (1)(d)(i);
(e) a detailed outline of the organization's credit services program to be offered in this state, including two copies of any contract, form, sales literature, or other relevant document that will be used by the organization; and
(f) a reasonable registration fee to be determined by the division.
(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).
13-21-3.5. 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. The application shall include:
(a) the name, complete address, and telephone number of the organization;
(b) the name of any person who owns or controls more than 5% of the 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 organization;
(d) (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) 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 Section 13-21-2(3)(a); or
(ii) a notarized statement of the credit services organization's chief executive officer or principal that neither the organization nor any person identified in Subsection (1)(b) or (c) is a party to any administrative, civil, or criminal action described in Subsection (1)(d)(i);
(e) a detailed outline of the organization's credit services program to be offered in this state, including two copies of any contract, form, sales literature, or other relevant document that will be used by the organization; and
(f) a reasonable registration fee to be determined by the division.
(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).

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13-21-4. Bond, letter of credit, or certificate of deposit -- Not required of agent if obtained by organization. (1) If a credit services organization has obtained a bond, letter of credit, or certificate of deposit as set forth in Subsection 13-21-3(1) a salesperson, agent, or representative who sells the services of that organization is not required to post his own separate bond, letter of credit, or certificate of deposit.
(2) As used in this section, a person is not a salesperson, agent, or representative of a credit services organization unless:
(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 bond or letter of credit certify in writing that the bond or letter of credit covers the person.
13-21-4. Bond, letter of credit, or certificate of deposit -- Not required of agent if obtained by organization. (1) If a credit services organization has obtained a bond, letter of credit, or certificate of deposit as set forth in Subsection 13-21-3(1) a salesperson, agent, or representative who sells the services of that organization is not required to post his own separate bond, letter of credit, or certificate of deposit.
(2) As used in this section, a person is not a salesperson, agent, or representative of a credit services organization unless:
(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 bond or letter of credit certify in writing that the bond or letter of credit covers the person.

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13-21-5. Written information statement required. 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. The credit services organization shall maintain on file for a period of two years an exact copy of the statement, personally signed by the buyer, acknowledging receipt of a copy of the statement. 13-21-5. Written information statement required. 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. The credit services organization shall maintain on file for a period of two years an exact copy of the statement, personally signed by the buyer, acknowledging receipt of a copy of the statement.

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13-21-6.   Contents of statement. The information statement required under Section 13-21-5 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 credit reporting agency, as provided under 15 U.S.C. Sec. 1681 et seq., as amended, the Fair Credit Reporting Act;
(2) a statement that 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 a notice of a denial of credit;
(3) the approximate price 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;
(5) a complete and detailed description of the services to be performed by the credit services organization 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 bond or trust account required under Section 13-21-3; and
(7) the name and address of the surety company which issued the bond, or the name and address of the depository and the trustee and the account number of the trust account.
13-21-6. Contents of statement. The information statement required under Section 13-21-5 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 credit reporting agency, as provided under 15 U.S.C. Sec. 1681 et seq., as amended, the Fair Credit Reporting Act;
(2) a statement that 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 a notice of a denial of credit;
(3) the approximate price 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;
(5) a complete and detailed description of the services to be performed by the credit services organization 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 bond or trust account required under Section 13-21-3; and
(7) the name and address of the surety company which issued the bond, or the name and address of the depository and the trustee and the account number of the trust account.

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13-21-7. Written contracts required -- Contents -- Notice of cancellation of contract. (1) Each 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 for the buyer, including all guarantees and all promises of full or partial refunds, and the estimated date by which 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)_____at _____(address of seller)_____ (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 copy of the completed contract and all other documents the credit services organization requires the buyer to sign at the time they are signed.
13-21-7. Written contracts required -- Contents -- Notice of cancellation of contract. (1) Each 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 for the buyer, including all guarantees and all promises of full or partial refunds, and the estimated date by which 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)_____at _____(address of seller)_____ (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 copy of the completed contract and all other documents the credit services organization requires the buyer to sign at the time they are signed.

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13-21-8. Burden of proving exception -- Penalties -- Court's criminal and equitable jurisdiction -- Prosecution. (1) (a) Any waiver by a buyer of any 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 proceeding involving this chapter, the burden of proving an exemption or an exception from a definition is upon the person claiming the exemption or exception.
(3) (a) Any person who violates this chapter is guilty of a class A misdemeanor.
(b) Any district court of this state has jurisdiction to restrain and enjoin the violation of this chapter.
(4) The attorney general, any county attorney, any district attorney, or any 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.
(b) All money received through administrative fines imposed under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.
13-21-8. Burden of proving exception -- Penalties -- Court's criminal and equitable jurisdiction -- Prosecution. (1) (a) Any waiver by a buyer of any 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 proceeding involving this chapter, the burden of proving an exemption or an exception from a definition is upon the person claiming the exemption or exception.
(3) (a) Any person who violates this chapter is guilty of a class A misdemeanor.
(b) Any district court of this state has jurisdiction to restrain and enjoin the violation of this chapter.
(4) The attorney general, any county attorney, any district attorney, or any 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.
(b) All money received through administrative fines imposed under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.

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13-21-9. Damages -- Punitive damages -- Attorney's fees and costs -- Remedies. (1) Any buyer injured by a violation of this chapter may bring any action for recovery of damages. Judgment shall be entered for actual damages, but in no case less than the amount paid by the buyer to the credit services organization, plus reasonable attorneys' fees and costs. An award may also be entered for punitive damages.
(2) The remedies provided under this chapter are in addition to any other procedures or remedies for any violation or conduct provided for in any other law.
(3) The Division of Consumer Protection may maintain an action for damages or injunctive relief on behalf of itself or any other person to enforce compliance with this chapter. Any judgment granted in favor of the division shall include, in addition to any other monetary award or injunctive relief, an award of reasonable attorneys' fees, court costs, and costs of investigation.
13-21-9. Damages -- Punitive damages -- Attorney's fees and costs -- Remedies. (1) Any buyer injured by a violation of this chapter may bring any action for recovery of damages. Judgment shall be entered for actual damages, but in no case less than the amount paid by the buyer to the credit services organization, plus reasonable attorneys' fees and costs. An award may also be entered for punitive damages.
(2) The remedies provided under this chapter are in addition to any other procedures or remedies for any violation or conduct provided for in any other law.
(3) The Division of Consumer Protection may maintain an action for damages or injunctive relief on behalf of itself or any other person to enforce compliance with this chapter. Any judgment granted in favor of the division shall include, in addition to any other monetary award or injunctive relief, an award of reasonable attorneys' fees, court costs, and costs of investigation.

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13-23-1. Short title. This chapter is known as the "Health Spa Services Protection Act." 13-23-1. Short title. This chapter is known as the "Health Spa Services Protection Act."

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13-23-2. Definitions. As used in this chapter:
(1) "Consumer" means a purchaser of health spa services for valuable consideration.
(2) "Division" means the Division of Consumer Protection.
(3) (a) "Health spa" means any person, partnership, joint venture, corporation, association, or other entity that, for a charge or fee, provides as one of its primary purposes services or facilities that are purported to assist patrons to improve their physical condition or appearance through:
(i) aerobic conditioning;
(ii) strength training;
(iii) fitness training; or
(iv) other exercise.
(b) "Health spa" includes any establishment designated:
(i) as a "health spa";
(ii) as a "spa";
(iii) as an "exercise gym";
(iv) as a "health studio";
(v) as a "health club";
(vi) as a "personal training facility"; or
(vii) with any other similar terms.
(c) "Health spa" does not include:
(i) any facility operated by a licensed physician at which the physician engages in the practice of medicine;
(ii) any facility operated by a hospital, intermediate care facility, or skilled nursing care facility;
(iii) any public or private school, college, or university;
(iv) any facility owned or operated by the state or its political subdivisions;
(v) any facility owned or operated by the United States or its political subdivisions; or
(vi) instruction offered by an individual if:
(A) the individual offering the instruction does not utilize another individual as an employee or independent contractor; and
(B) a patron is not granted the use of a facility containing exercise equipment.
(4) "Health spa services" means any service provided by a health spa, including athletic facilities, equipment, and instruction.
13-23-2. Definitions. As used in this chapter:
(1) "Consumer" means a purchaser of health spa services for valuable consideration.
(2) "Division" means the Division of Consumer Protection.
(3) (a) "Health spa" means any person, partnership, joint venture, corporation, association, or other entity that, for a charge or fee, provides as one of its primary purposes services or facilities that are purported to assist patrons to improve their physical condition or appearance through:
(i) aerobic conditioning;
(ii) strength training;
(iii) fitness training; or
(iv) other exercise.
(b) "Health spa" includes any establishment designated:
(i) as a "health spa";
(ii) as a "spa";
(iii) as an "exercise gym";
(iv) as a "health studio";
(v) as a "health club";
(vi) as a "personal training facility"; or
(vii) with any other similar terms.
(c) "Health spa" does not include:
(i) any facility operated by a licensed physician at which the physician engages in the practice of medicine;
(ii) any facility operated by a hospital, intermediate care facility, or skilled nursing care facility;
(iii) any public or private school, college, or university;
(iv) any facility owned or operated by the state or its political subdivisions;
(v) any facility owned or operated by the United States or its political subdivisions; or
(vi) instruction offered by an individual if:
(A) the individual offering the instruction does not utilize another individual as an employee or independent contractor; and
(B) a patron is not granted the use of a facility containing exercise equipment.
(4) "Health spa services" means any service provided by a health spa, including athletic facilities, equipment, and instruction.

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13-23-3. Contracts for health spa services. (1) Any contract for the sale of health spa services shall be in writing. The written contract shall constitute the entire agreement between the consumer and the health spa.
(2) The health spa shall provide the consumer with a fully completed copy of the contract required by Subsection (1) at the time of its execution. The copy shall show:
(a) the date of the transaction;
(b) the name and address of the health spa; and
(c) the name, address, and telephone number of the consumer.
(3) (a) A contract may not have a term in excess of 36 months, but the contract may provide that the consumer may exercise an option to renew the term after its expiration.
(b) Except for a lifetime membership sold prior to May 1, 1995, a health spa may not offer a lifetime membership.
(4) The contract or an attachment to it shall clearly state any rules of the health spa that apply to:
(a) the consumer's use of its facilities and services; and
(b) cancellation and refund policies of the health spa.
(5) The contract shall specify which equipment or facility of the health spa:
(a) is omitted from the contract's coverage; or
(b) may be changed at the health spa's discretion.
(6) The contract shall clearly state that the consumer has a three-day period after the day on which the contract is executed to rescind the contract.
13-23-3. Contracts for health spa services. (1) Any contract for the sale of health spa services shall be in writing. The written contract shall constitute the entire agreement between the consumer and the health spa.
(2) The health spa shall provide the consumer with a fully completed copy of the contract required by Subsection (1) at the time of its execution. The copy shall show:
(a) the date of the transaction;
(b) the name and address of the health spa; and
(c) the name, address, and telephone number of the consumer.
(3) (a) A contract may not have a term in excess of 36 months, but the contract may provide that the consumer may exercise an option to renew the term after its expiration.
(b) Except for a lifetime membership sold prior to May 1, 1995, a health spa may not offer a lifetime membership.
(4) The contract or an attachment to it shall clearly state any rules of the health spa that apply to:
(a) the consumer's use of its facilities and services; and
(b) cancellation and refund policies of the health spa.
(5) The contract shall specify which equipment or facility of the health spa:
(a) is omitted from the contract's coverage; or
(b) may be changed at the health spa's discretion.
(6) The contract shall clearly state that the consumer has a three-day period after the day on which the contract is executed to rescind the contract.

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13-23-4. Rescission.
(1) A consumer may rescind a contract for the purchase of health spa services if he enters into the contract and gives value at a time when the health spa is not fully operational and available for use, and if the health spa does not become fully operational and available for use within 60 days after the date of the contract.
(2) A consumer's right to rescind his contract under this section continues for three business days after the health spa becomes fully operational and available for use.
(3) A consumer who rescinds his contract under this section is entitled to a refund of any payments he has made, less the reasonable value of any health spa services he actually received or $25, whichever is less. The preparation and processing of the contract and other documents are not considered to be health spa services that are deductible under this subsection from any refundable amount.
(4) Any rescission of a contract under this section is effective upon the health spa's receipt of written notice of the consumer's intent to rescind the contract. The notice may be delivered by hand or mailed by certified mail postmarked no later than midnight of the third day after the health spa becomes fully operational and available for use.

13-23-4. Rescission.
(1) A consumer may rescind a contract for the purchase of health spa services if he enters into the contract and gives value at a time when the health spa is not fully operational and available for use, and if the health spa does not become fully operational and available for use within 60 days after the date of the contract.
(2) A consumer's right to rescind his contract under this section continues for three business days after the health spa becomes fully operational and available for use.
(3) A consumer who rescinds his contract under this section is entitled to a refund of any payments he has made, less the reasonable value of any health spa services he actually received or $25, whichever is less. The preparation and processing of the contract and other documents are not considered to be health spa services that are deductible under this subsection from any refundable amount.
(4) Any rescission of a contract under this section is effective upon the health spa's receipt of written notice of the consumer's intent to rescind the contract. The notice may be delivered by hand or mailed by certified mail postmarked no later than midnight of the third day after the health spa becomes fully operational and available for use.

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13-23-5. Registration -- Bond, letter of credit, or certificate of deposit required -- Penalties.
(1) (a) (i) It is unlawful for any health spa facility to operate in this state unless the facility is registered with the division.
(ii) Registration is effective for one year. If the health spa facility renews its registration, the registration shall be renewed at least 30 days prior to its expiration.
(iii) The division shall provide by rule for the form, content, application process, and renewal process of the registration.
(b) Each health spa registering in this state shall designate a registered agent for receiving service of process. The registered agent shall be reasonably available from 8 a.m. until 5 p.m. during normal working days.
(c) The division shall charge and collect a fee for registration under guidelines provided in Section 63J-1-504.
(d) If an applicant fails to file a registration application or renewal by the due date, or files an incomplete registration application or renewal, the applicant shall pay a fee of $25 for each month or part of a month after the date on which the registration application or renewal were due to be filed, in addition to the registration fee described in Subsection (1)(c).
(2) (a) Each health spa shall obtain and maintain:
(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 to do business in this state; or
(iii) a certificate of deposit.
(b) The 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:
(i) the health spa's violation of this chapter; or
(ii) the health spa's going out of business or relocating and failing to offer an alternate location within five miles.
(c) (i) The division may recover from the bond, letter of credit, or certificate of deposit the costs of collecting and distributing funds under this section, up to 10% of the face value of the bond, letter of credit, or certificate of deposit but only if the consumers have fully recovered their damages first.
(ii) The total liability of the issuer of the bond, letter of credit, or certificate of deposit may not exceed the amount of the bond, letter of credit, or certificate of deposit.
(iii) The health spa shall maintain a bond, letter of credit, or certificate of deposit in force for one year after it notifies the division in writing that it has ceased all activities regulated by this chapter.
(d) A health spa providing services at more than one location shall comply with the requirements of Subsection (2)(a) for each separate location.
(e) The division may impose a fine against a health spa that fails to comply with the requirements of Subsection (2)(a) of up to $100 per day that the health spa remains out of compliance. All penalties received shall be deposited into the Consumer Protection Education and Training Fund created in Section 13-2-8.
(3) (a) The minimum principal amount of the bond, letter of credit, or certificate of credit required under Subsection (2) shall be based on the number of unexpired contracts for health spa

services to which the health spa is a party, in accordance with the following schedule:
Principal Amount of Number of Contracts
Bond, Letter of Credit,
or Certificate of Deposit
$15,000 500 or fewer
35,000 501 to 1,500
50,000 1,500 to 3,000
75,000 3,001 or more
(b) A health spa that is not exempt under Section 13-23-6 shall comply with Subsection (3)(a) with respect to all of the health spa's unexpired contracts for health spa services, regardless of whether a portion of those contracts satisfy the criteria in Section 13-23-6.
(4) Each health spa shall obtain the bond, letter of credit, or certificate of deposit and furnish a certified copy of the bond, letter of credit, or certificate of deposit to the division prior to selling, offering or attempting to sell, soliciting the sale of, or becoming a party to any contract to provide health spa services. A health spa is considered to be in compliance with this section only if the proof provided to the division shows that the bond, letter of credit, or certificate of credit is current.
(5) Each health spa shall:
(a) maintain accurate records of the bond, letter of credit, or certificate of credit and of any payments made, due, or to become due to the issuer; and
(b) open the records to inspection by the division at any time during normal business hours.
(6) If a health spa changes ownership, ceases operation, discontinues facilities, or relocates and fails to offer an alternate location within five miles within 30 days after its closing, the health spa is subject to the requirements of this section as if it were a new health spa coming into being at the time the health spa changed ownership. The former owner may not release, cancel, or terminate the owner's liability under any bond, letter of credit, or certificate of deposit previously filed with the division, unless:
(a) the new owner has filed a new bond, letter of credit, or certificate of deposit for the benefit of consumers covered under the previous owner's bond, letter of credit, or certificate of deposit; or
(b) the former owner has refunded all unearned payments to consumers.
(7) If a health spa ceases operation or relocates and fails to offer an alternative location within five miles, the health spa shall provide the division with 45 days prior notice.

13-23-5. Registration -- Bond, letter of credit, or certificate of deposit required -- Penalties.
(1) (a) (i) It is unlawful for any health spa facility to operate in this state unless the facility is registered with the division.
(ii) Registration is effective for one year. If the health spa facility renews its registration, the registration shall be renewed at least 30 days prior to its expiration.
(iii) The division shall provide by rule for the form, content, application process, and renewal process of the registration.
(b) Each health spa registering in this state shall designate a registered agent for receiving service of process. The registered agent shall be reasonably available from 8 a.m. until 5 p.m. during normal working days.
(c) The division shall charge and collect a fee for registration under guidelines provided in Section 63J-1-504.
(d) If an applicant fails to file a registration application or renewal by the due date, or files an incomplete registration application or renewal, the applicant shall pay a fee of $25 for each month or part of a month after the date on which the registration application or renewal were due to be filed, in addition to the registration fee described in Subsection (1)(c).
(2) (a) Each health spa shall obtain and maintain:
(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 to do business in this state; or
(iii) a certificate of deposit.
(b) The 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:
(i) the health spa's violation of this chapter; or
(ii) the health spa's going out of business or relocating and failing to offer an alternate location within five miles.
(c) (i) The division may recover from the bond, letter of credit, or certificate of deposit the costs of collecting and distributing funds under this section, up to 10% of the face value of the bond, letter of credit, or certificate of deposit but only if the consumers have fully recovered their damages first.
(ii) The total liability of the issuer of the bond, letter of credit, or certificate of deposit may not exceed the amount of the bond, letter of credit, or certificate of deposit.
(iii) The health spa shall maintain a bond, letter of credit, or certificate of deposit in force for one year after it notifies the division in writing that it has ceased all activities regulated by this chapter.
(d) A health spa providing services at more than one location shall comply with the requirements of Subsection (2)(a) for each separate location.
(e) The division may impose a fine against a health spa that fails to comply with the requirements of Subsection (2)(a) of up to $100 per day that the health spa remains out of compliance. All penalties received shall be deposited into the Consumer Protection Education and Training Fund created in Section 13-2-8.
(3) (a) The minimum principal amount of the bond, letter of credit, or certificate of credit required under Subsection (2) shall be based on the number of unexpired contracts for health spa

services to which the health spa is a party, in accordance with the following schedule:
Principal Amount of Number of Contracts
Bond, Letter of Credit,
or Certificate of Deposit
$15,000 500 or fewer
35,000 501 to 1,500
50,000 1,500 to 3,000
75,000 3,001 or more
(b) A health spa that is not exempt under Section 13-23-6 shall comply with Subsection (3)(a) with respect to all of the health spa's unexpired contracts for health spa services, regardless of whether a portion of those contracts satisfy the criteria in Section 13-23-6.
(4) Each health spa shall obtain the bond, letter of credit, or certificate of deposit and furnish a certified copy of the bond, letter of credit, or certificate of deposit to the division prior to selling, offering or attempting to sell, soliciting the sale of, or becoming a party to any contract to provide health spa services. A health spa is considered to be in compliance with this section only if the proof provided to the division shows that the bond, letter of credit, or certificate of credit is current.
(5) Each health spa shall:
(a) maintain accurate records of the bond, letter of credit, or certificate of credit and of any payments made, due, or to become due to the issuer; and
(b) open the records to inspection by the division at any time during normal business hours.
(6) If a health spa changes ownership, ceases operation, discontinues facilities, or relocates and fails to offer an alternate location within five miles within 30 days after its closing, the health spa is subject to the requirements of this section as if it were a new health spa coming into being at the time the health spa changed ownership. The former owner may not release, cancel, or terminate the owner's liability under any bond, letter of credit, or certificate of deposit previously filed with the division, unless:
(a) the new owner has filed a new bond, letter of credit, or certificate of deposit for the benefit of consumers covered under the previous owner's bond, letter of credit, or certificate of deposit; or
(b) the former owner has refunded all unearned payments to consumers.
(7) If a health spa ceases operation or relocates and fails to offer an alternative location within five miles, the health spa shall provide the division with 45 days prior notice.

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13-23-6. Exemptions from bond, letter of credit, or certificate of deposit requirement. A health spa that offers no paid-in-full membership, but only memberships paid for by installment contracts is exempt from the application of Subsections 13-23-5(2) through (5) if:
(1) each contract contains the following clause: "If this health spa ceases operation and fails to offer an alternate location within five miles, no further payments under this contract shall be due to anyone, including any purchaser of any note associated with or contained in this contract.";
(2) all payments due under each contract, including down payments, enrollment fees, membership fees, or any other payments to the health spa, are in equal monthly installments spread over the entire term of the contract; and
(3) the term of each contract is clearly stated and is not capable of being extended.
13-23-6. Exemptions from bond, letter of credit, or certificate of deposit requirement. A health spa that offers no paid-in-full membership, but only memberships paid for by installment contracts is exempt from the application of Subsections 13-23-5(2) through (5) if:
(1) each contract contains the following clause: "If this health spa ceases operation and fails to offer an alternate location within five miles, no further payments under this contract shall be due to anyone, including any purchaser of any note associated with or contained in this contract.";
(2) all payments due under each contract, including down payments, enrollment fees, membership fees, or any other payments to the health spa, are in equal monthly installments spread over the entire term of the contract; and
(3) the term of each contract is clearly stated and is not capable of being extended.

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13-23-7. Enforcement -- Costs and attorney's fees -- Penalties. (1) The division may, on behalf of any consumer or on its own behalf, file an action for injunctive relief, damages, or both to enforce this chapter. In addition to any relief granted, the division is entitled to an award for reasonable attorney's fees, court costs, and reasonable investigative expenses.
(2) (a) A person who willfully violates any 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. Each day the violation is committed or permitted to continue constitutes a separate punishable offense.
(b) In the case of a second offense, the person is guilty of a class A misdemeanor.
(c) In the case of three or more offenses, 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)(e) up to $10,000 for any series of violations arising out of the same operative facts.
(b) All administrative fines collected under this chapter shall be deposited in the Consumer Protection Education and Training Fund created in Section 13-2-8.
13-23-7. Enforcement -- Costs and attorney's fees -- Penalties. (1) The division may, on behalf of any consumer or on its own behalf, file an action for injunctive relief, damages, or both to enforce this chapter. In addition to any relief granted, the division is entitled to an award for reasonable attorney's fees, court costs, and reasonable investigative expenses.
(2) (a) A person who willfully violates any 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. Each day the violation is committed or permitted to continue constitutes a separate punishable offense.
(b) In the case of a second offense, the person is guilty of a class A misdemeanor.
(c) In the case of three or more offenses, 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)(e) up to $10,000 for any series of violations arising out of the same operative facts.
(b) All administrative fines collected under this chapter shall be deposited in the Consumer Protection Education and Training Fund created in Section 13-2-8.

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13-20-1. Short title.This chapter is known as the "New Motor Vehicles Warranties Act." 13-20-1. Short title.This chapter is known as the "New Motor Vehicles Warranties Act."

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13-20-2. Definitions. As used in this chapter:
(1) "Consumer" means an individual who enters into an agreement or contract for the transfer, lease, purchase of a new motor vehicle other than for purposes of resale, or sublease during the duration of the period defined under Section 13-20-5.
(2) "Manufacturer" means manufacturer, importer, distributor, or anyone who is named as the warrantor on an express written warranty on a motor vehicle.
(3) "Motor home" means a self-propelled vehicular unit, primarily designed as a temporary dwelling for travel, recreational, and vacation use.
(4) (a) "Motor vehicle" includes:
(i) a motor home, as defined in this section, but only the self-propelled vehicle and chassis sold in this state;
(ii) a motor vehicle, as defined in Section 41-1a-102, sold in this state; and
(iii) a motorcycle, as defined in Section 41-1a-102, sold in this state if the motorcycle is designed primarily for use and operation on paved highways.
(b) "Motor vehicle" does not include:
(i) those portions of a motor home designated, used, or maintained primarily as a mobile dwelling, office, or commercial space;
(ii) a road tractor or truck tractor as defined in Section 41-1a-102;
(iii) a mobile home as defined in Section 41-1a-102;
(iv) any motor vehicle with a gross laden weight of over 12,000 pounds, except:
(A) a motor home as defined under Subsection (3); and
(B) a farm tractor as defined in Section 41-1a-102;
(v) a motorcycle, as defined in Section 41-1a-102, if the motorcycle is designed primarily for use or operation over unimproved terrain;
(vi) an electric assisted bicycle as defined in Section 41-6a-102;
(vii) a moped as defined in Section 41-6a-102;
(viii) a motor assisted scooter as defined in Section 41-6a-102; or
(ix) a motor-driven cycle as defined in Section 41-6a-102.
13-20-2. Definitions. As used in this chapter:
(1) "Consumer" means an individual who enters into an agreement or contract for the transfer, lease, purchase of a new motor vehicle other than for purposes of resale, or sublease during the duration of the period defined under Section 13-20-5.
(2) "Manufacturer" means manufacturer, importer, distributor, or anyone who is named as the warrantor on an express written warranty on a motor vehicle.
(3) "Motor home" means a self-propelled vehicular unit, primarily designed as a temporary dwelling for travel, recreational, and vacation use.
(4) (a) "Motor vehicle" includes:
(i) a motor home, as defined in this section, but only the self-propelled vehicle and chassis sold in this state;
(ii) a motor vehicle, as defined in Section 41-1a-102, sold in this state; and
(iii) a motorcycle, as defined in Section 41-1a-102, sold in this state if the motorcycle is designed primarily for use and operation on paved highways.
(b) "Motor vehicle" does not include:
(i) those portions of a motor home designated, used, or maintained primarily as a mobile dwelling, office, or commercial space;
(ii) a road tractor or truck tractor as defined in Section 41-1a-102;
(iii) a mobile home as defined in Section 41-1a-102;
(iv) any motor vehicle with a gross laden weight of over 12,000 pounds, except:
(A) a motor home as defined under Subsection (3); and
(B) a farm tractor as defined in Section 41-1a-102;
(v) a motorcycle, as defined in Section 41-1a-102, if the motorcycle is designed primarily for use or operation over unimproved terrain;
(vi) an electric assisted bicycle as defined in Section 41-6a-102;
(vii) a moped as defined in Section 41-6a-102;
(viii) a motor assisted scooter as defined in Section 41-6a-102; or
(ix) a motor-driven cycle as defined in Section 41-6a-102.

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13-20-3. Nonconforming motor vehicles -- Repairs. If a new motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the term of the express warranties or during the one-year period following the date of original delivery of the motor vehicle to a consumer, whichever is earlier, the manufacturer, its agent, or its authorized dealer shall make repairs necessary to conform the vehicle to the express warranties, whether or not these repairs are made after the expiration of the warranty term or the one-year period. 13-20-3. Nonconforming motor vehicles -- Repairs. If a new motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the term of the express warranties or during the one-year period following the date of original delivery of the motor vehicle to a consumer, whichever is earlier, the manufacturer, its agent, or its authorized dealer shall make repairs necessary to conform the vehicle to the express warranties, whether or not these repairs are made after the expiration of the warranty term or the one-year period.

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13-20-4. Nonconforming motor vehicles -- Replacement -- Refund -- Criteria -- Defenses. (1) If the manufacturer, its agent, or its authorized dealer is unable to conform the motor vehicle to any applicable express warranty by repairing or correcting any defect or condition that substantially impairs the use, market value, or safety of the motor vehicle after a reasonable number of attempts, the manufacturer shall replace the motor vehicle with a comparable new motor vehicle or accept return of the vehicle from the consumer and refund to the consumer the full purchase price including all collateral charges, less a reasonable allowance for the consumer's use of the vehicle. Refunds shall be made to the consumer, and any lienholders or lessors as their interests may appear.
(2) A reasonable allowance for use is that amount directly attributable to use by the consumer prior to his first report of the nonconformity to the manufacturer, its agent, or its authorized dealer, and during any subsequent period when the vehicle is not out of service because of repair.
(3) Upon receipt of any refund or replacement under Subsection (1), the consumer, lienholder, or lessor shall furnish to the manufacturer clear title to and possession of the motor vehicle.
(4) It is an affirmative defense to any claim under this chapter:
(a) that an alleged nonconformity does not substantially impair the consumer's use of the motor vehicle and does not substantially impair the market value or safety of the motor vehicle; or
(b) that an alleged nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of a motor vehicle by a consumer.
13-20-4. Nonconforming motor vehicles -- Replacement -- Refund -- Criteria -- Defenses. (1) If the manufacturer, its agent, or its authorized dealer is unable to conform the motor vehicle to any applicable express warranty by repairing or correcting any defect or condition that substantially impairs the use, market value, or safety of the motor vehicle after a reasonable number of attempts, the manufacturer shall replace the motor vehicle with a comparable new motor vehicle or accept return of the vehicle from the consumer and refund to the consumer the full purchase price including all collateral charges, less a reasonable allowance for the consumer's use of the vehicle. Refunds shall be made to the consumer, and any lienholders or lessors as their interests may appear.
(2) A reasonable allowance for use is that amount directly attributable to use by the consumer prior to his first report of the nonconformity to the manufacturer, its agent, or its authorized dealer, and during any subsequent period when the vehicle is not out of service because of repair.
(3) Upon receipt of any refund or replacement under Subsection (1), the consumer, lienholder, or lessor shall furnish to the manufacturer clear title to and possession of the motor vehicle.
(4) It is an affirmative defense to any claim under this chapter:
(a) that an alleged nonconformity does not substantially impair the consumer's use of the motor vehicle and does not substantially impair the market value or safety of the motor vehicle; or
(b) that an alleged nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of a motor vehicle by a consumer.

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13-20-5.   Reasonable number of attempts to conform. (1) It is presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties, if:
(a) the same nonconformity has been subject to repair four or more times by the manufacturer, its agent, or its authorized dealer within the express warranty term or during the one-year period following the date of original delivery of the motor vehicle to a consumer, whichever is earlier, but the nonconformity continues to exist; or
(b) the vehicle is out of service to the consumer because of repair for a cumulative total of 30 or more business days during the warranty term or during the one-year period, whichever is earlier.
(2) The term of an express warranty, the one-year period, and the 30-day period shall be extended by any period of time during which repair services are not available to the consumer because of a war, invasion, strike, fire, flood, or other natural disaster.
13-20-5. Reasonable number of attempts to conform. (1) It is presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties, if:
(a) the same nonconformity has been subject to repair four or more times by the manufacturer, its agent, or its authorized dealer within the express warranty term or during the one-year period following the date of original delivery of the motor vehicle to a consumer, whichever is earlier, but the nonconformity continues to exist; or
(b) the vehicle is out of service to the consumer because of repair for a cumulative total of 30 or more business days during the warranty term or during the one-year period, whichever is earlier.
(2) The term of an express warranty, the one-year period, and the 30-day period shall be extended by any period of time during which repair services are not available to the consumer because of a war, invasion, strike, fire, flood, or other natural disaster.

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13-20-6. Enforcement -- Limited liability of dealer -- No limit on other rights or remedies. (1) The Division of Consumer Protection shall, or a consumer may, enforce the rights created under this chapter. An action may be commenced by a consumer only after the claim has been investigated and evaluated by the division.
(2) This chapter may not be interpreted as imposing any liability on an authorized dealer or creating a cause of action by a consumer against a dealer under this chapter, except regarding any written express warranties made by the dealer apart from the manufacturer's own warranties.
(3) This chapter does not limit the rights or remedies which are otherwise available to a consumer under any other law.
(4) In an action initiated under this section by the consumer, the court may award attorneys' fees to the prevailing party.
13-20-6. Enforcement -- Limited liability of dealer -- No limit on other rights or remedies. (1) The Division of Consumer Protection shall, or a consumer may, enforce the rights created under this chapter. An action may be commenced by a consumer only after the claim has been investigated and evaluated by the division.
(2) This chapter may not be interpreted as imposing any liability on an authorized dealer or creating a cause of action by a consumer against a dealer under this chapter, except regarding any written express warranties made by the dealer apart from the manufacturer's own warranties.
(3) This chapter does not limit the rights or remedies which are otherwise available to a consumer under any other law.
(4) In an action initiated under this section by the consumer, the court may award attorneys' fees to the prevailing party.

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13-20-7. Use of dispute settlement procedure. If a manufacturer has established an informal dispute settlement procedure which complies with Title 16, Code of Federal Regulations, Part 703, then Section 13-20-4 concerning refunds or replacement does not apply to any consumer who has not first resorted to this procedure. 13-20-7. Use of dispute settlement procedure. If a manufacturer has established an informal dispute settlement procedure which complies with Title 16, Code of Federal Regulations, Part 703, then Section 13-20-4 concerning refunds or replacement does not apply to any consumer who has not first resorted to this procedure.

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13-32a-101. Title.
This chapter is known as the "Pawnshop and Secondhand Merchandise Transaction Information Act."
13-32a-101. Title.
This chapter is known as the "Pawnshop and Secondhand Merchandise Transaction Information Act."

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13-32a-102. Definitions.As used in this chapter:
(1) "Account" means the Pawnbroker and Secondhand Merchandise Operations Restricted Account created in Section 13-32a-113.
(2) "Antique item" means an item:
(a) that is generally older than 25 years;
(b) whose value is based on age, rarity, condition, craftsmanship, or collectability;
(c) that is furniture or other decorative objects produced in a previous time period, as distinguished from new items of a similar nature; and
(d) obtained from auctions, estate sales, other antique shops, and individuals.
(3) "Antique shop" means a business operating at an established location and that offers for sale antique items.
(4) "Board" means the Pawnshop and Secondhand Merchandise Advisory Board created by this chapter.
(5) "Central database" or "database" means the electronic database created and operated under Section 13-32a-105.
(6) "Coin" means a piece of currency, usually metallic and usually in the shape of a disc that is:
(a) stamped metal, and issued by a government as monetary currency; or
(b) (i) worth more than its current value as currency; and
(ii) worth more than its metal content value.
(7) "Coin dealer" means a person or business whose sole business activity is the selling and purchasing of coins and precious metals.
(8) "Commercial grade precious metals" or "precious metals" means ingots, monetized bullion, art bars, medallions, medals, tokens, and currency that are marked by the refiner or fabricator indicating their fineness and include:
(a) .99 fine or finer ingots of gold, silver, platinum, palladium, or other precious metals; or
(b) .925 fine sterling silver ingots, art bars, and medallions.
(9) "Division" means the Division of Consumer Protection in Title 13, Chapter 1, Department of Commerce.
(10) "Identification" means a form of positive identification issued by a governmental entity and that:
(a) contains a numerical identifier and a photograph of the person identified; and
(b) may include a state identification card, a state drivers license, a United States military identification card, or a United States passport.
(11) "Local law enforcement agency" means the law enforcement agency that has direct responsibility for ensuring compliance with central database reporting requirements for the jurisdiction where the pawnshop or secondhand business is located.
(12) "Misappropriated" means stolen, embezzled, converted, obtained by theft, or otherwise appropriated without authority of the lawful owner.
(13) "Original victim" means a victim who is not a party to the pawn or sale transaction.
(14) "Pawnbroker" means a person whose business engages in the following activities:
(a) loans money on one or more deposits of personal property;
(b) deals in the purchase, exchange, or possession of personal property on condition of

selling the same property back again to the pledgor or depositor;
(c) loans or advances money on personal property by taking chattel mortgage security on the property and takes or receives the personal property into his possession, and who sells the unredeemed pledges;
(d) deals in the purchase, exchange, or sale of used or secondhand merchandise or personal property; or
(e) engages in a licensed business enterprise as a pawnshop.
(15) "Pawn and secondhand business" means any business operated by a pawnbroker or secondhand merchandise dealer, or the owner or operator of the business.
(16) "Pawn ticket" means a document upon which information regarding a pawn transaction is entered when the pawn transaction is made.
(17) "Pawn transaction" means an extension of credit in which an individual delivers property to a pawnbroker for an advance of money and retains the right to redeem the property for the redemption price within a fixed period of time.
(18) "Pawnshop" means the physical location or premises where a pawnbroker conducts business.
(19) "Pledgor" means a person who conducts a pawn transaction with a pawnshop.
(20) "Property" means any tangible personal property.
(21) "Register" means the record of information required under this chapter to be maintained by pawn and secondhand businesses. The register is an electronic record that is in a format that is compatible with the central database.
(22) "Scrap jewelry" means any item purchased solely:
(a) for its gold, silver, or platinum content; and
(b) for the purpose of reuse of the metal content.
(23) (a) "Secondhand merchandise dealer" means an owner or operator of a business that:
(i) deals in the purchase, exchange, or sale of used or secondhand merchandise or personal property; and
(ii) does not function as a pawnbroker.
(b) "Secondhand merchandise dealer" does not include:
(i) the owner or operator of an antique shop;
(ii) any class of businesses exempt by administrative rule under Section 13-32a-112.5;
(iii) any person or entity who operates auction houses, flea markets, or vehicle, vessel, and outboard motor dealers as defined in Section 41-1a-102;
(iv) the sale of secondhand goods at events commonly known as "garage sales," "yard sales," or "estate sales";
(v) the sale or receipt of secondhand books, magazines, or post cards;
(vi) the sale or receipt of used merchandise donated to recognized nonprofit, religious, or charitable organizations or any school-sponsored association, and for which no compensation is paid;
(vii) the sale or receipt of secondhand clothing and shoes;
(viii) any person offering his own personal property for sale, purchase, consignment, or trade via the Internet;
(ix) any person or entity offering the personal property of others for sale, purchase, consignment, or trade via the Internet, when that person or entity does not have, and is not required to have, a local business or occupational license or other authorization for this activity;

(x) any owner or operator of a retail business that receives used merchandise as a trade-in for similar new merchandise;
(xi) an owner or operator of a business that contracts with other persons or entities to offer those persons' secondhand goods for sale, purchase, consignment, or trade via the Internet;
(xii) any dealer as defined in Section 76-10-901, which concerns scrap metal and secondary metals; or
(xiii) the purchase of items in bulk that are:
(A) sold at wholesale in bulk packaging;
(B) sold by a person licensed to conduct business in Utah; and
(C) regularly sold in bulk quantities as a recognized form of sale.
13-32a-102. Definitions.As used in this chapter:
(1) "Account" means the Pawnbroker and Secondhand Merchandise Operations Restricted Account created in Section 13-32a-113.
(2) "Antique item" means an item:
(a) that is generally older than 25 years;
(b) whose value is based on age, rarity, condition, craftsmanship, or collectability;
(c) that is furniture or other decorative objects produced in a previous time period, as distinguished from new items of a similar nature; and
(d) obtained from auctions, estate sales, other antique shops, and individuals.
(3) "Antique shop" means a business operating at an established location and that offers for sale antique items.
(4) "Board" means the Pawnshop and Secondhand Merchandise Advisory Board created by this chapter.
(5) "Central database" or "database" means the electronic database created and operated under Section 13-32a-105.
(6) "Coin" means a piece of currency, usually metallic and usually in the shape of a disc that is:
(a) stamped metal, and issued by a government as monetary currency; or
(b) (i) worth more than its current value as currency; and
(ii) worth more than its metal content value.
(7) "Coin dealer" means a person or business whose sole business activity is the selling and purchasing of coins and precious metals.
(8) "Commercial grade precious metals" or "precious metals" means ingots, monetized bullion, art bars, medallions, medals, tokens, and currency that are marked by the refiner or fabricator indicating their fineness and include:
(a) .99 fine or finer ingots of gold, silver, platinum, palladium, or other precious metals; or
(b) .925 fine sterling silver ingots, art bars, and medallions.
(9) "Division" means the Division of Consumer Protection in Title 13, Chapter 1, Department of Commerce.
(10) "Identification" means a form of positive identification issued by a governmental entity and that:
(a) contains a numerical identifier and a photograph of the person identified; and
(b) may include a state identification card, a state drivers license, a United States military identification card, or a United States passport.
(11) "Local law enforcement agency" means the law enforcement agency that has direct responsibility for ensuring compliance with central database reporting requirements for the jurisdiction where the pawnshop or secondhand business is located.
(12) "Misappropriated" means stolen, embezzled, converted, obtained by theft, or otherwise appropriated without authority of the lawful owner.
(13) "Original victim" means a victim who is not a party to the pawn or sale transaction.
(14) "Pawnbroker" means a person whose business engages in the following activities:
(a) loans money on one or more deposits of personal property;
(b) deals in the purchase, exchange, or possession of personal property on condition of

selling the same property back again to the pledgor or depositor;
(c) loans or advances money on personal property by taking chattel mortgage security on the property and takes or receives the personal property into his possession, and who sells the unredeemed pledges;
(d) deals in the purchase, exchange, or sale of used or secondhand merchandise or personal property; or
(e) engages in a licensed business enterprise as a pawnshop.
(15) "Pawn and secondhand business" means any business operated by a pawnbroker or secondhand merchandise dealer, or the owner or operator of the business.
(16) "Pawn ticket" means a document upon which information regarding a pawn transaction is entered when the pawn transaction is made.
(17) "Pawn transaction" means an extension of credit in which an individual delivers property to a pawnbroker for an advance of money and retains the right to redeem the property for the redemption price within a fixed period of time.
(18) "Pawnshop" means the physical location or premises where a pawnbroker conducts business.
(19) "Pledgor" means a person who conducts a pawn transaction with a pawnshop.
(20) "Property" means any tangible personal property.
(21) "Register" means the record of information required under this chapter to be maintained by pawn and secondhand businesses. The register is an electronic record that is in a format that is compatible with the central database.
(22) "Scrap jewelry" means any item purchased solely:
(a) for its gold, silver, or platinum content; and
(b) for the purpose of reuse of the metal content.
(23) (a) "Secondhand merchandise dealer" means an owner or operator of a business that:
(i) deals in the purchase, exchange, or sale of used or secondhand merchandise or personal property; and
(ii) does not function as a pawnbroker.
(b) "Secondhand merchandise dealer" does not include:
(i) the owner or operator of an antique shop;
(ii) any class of businesses exempt by administrative rule under Section 13-32a-112.5;
(iii) any person or entity who operates auction houses, flea markets, or vehicle, vessel, and outboard motor dealers as defined in Section 41-1a-102;
(iv) the sale of secondhand goods at events commonly known as "garage sales," "yard sales," or "estate sales";
(v) the sale or receipt of secondhand books, magazines, or post cards;
(vi) the sale or receipt of used merchandise donated to recognized nonprofit, religious, or charitable organizations or any school-sponsored association, and for which no compensation is paid;
(vii) the sale or receipt of secondhand clothing and shoes;
(viii) any person offering his own personal property for sale, purchase, consignment, or trade via the Internet;
(ix) any person or entity offering the personal property of others for sale, purchase, consignment, or trade via the Internet, when that person or entity does not have, and is not required to have, a local business or occupational license or other authorization for this activity;

(x) any owner or operator of a retail business that receives used merchandise as a trade-in for similar new merchandise;
(xi) an owner or operator of a business that contracts with other persons or entities to offer those persons' secondhand goods for sale, purchase, consignment, or trade via the Internet;
(xii) any dealer as defined in Section 76-10-901, which concerns scrap metal and secondary metals; or
(xiii) the purchase of items in bulk that are:
(A) sold at wholesale in bulk packaging;
(B) sold by a person licensed to conduct business in Utah; and
(C) regularly sold in bulk quantities as a recognized form of sale.

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13-32a-102.5. Administration and enforcement. (1) The division shall administer and enforce this chapter in accordance with the authority under Title 13, Chapter 2, Division of Consumer Protection.
(2) 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) Reasonable attorney fees, costs, and interest shall be awarded to the division in any action brought to enforce the provisions of this chapter.
13-32a-102.5. Administration and enforcement. (1) The division shall administer and enforce this chapter in accordance with the authority under Title 13, Chapter 2, Division of Consumer Protection.
(2) 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) Reasonable attorney fees, costs, and interest shall be awarded to the division in any action brought to enforce the provisions of this chapter.

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13-32a-103. Compliance with criminal code and this chapter.Every pawn or secondhand business shall, regarding each article of property a person pawns or sells, comply with the requirements of this chapter and the requirements of Subsections 76-6-408(2)(c)(i) through (iii) regarding the person's:
(1) legal right to the property;
(2) fingerprint; and
(3) picture identification.
13-32a-103. Compliance with criminal code and this chapter.Every pawn or secondhand business shall, regarding each article of property a person pawns or sells, comply with the requirements of this chapter and the requirements of Subsections 76-6-408(2)(c)(i) through (iii) regarding the person's:
(1) legal right to the property;
(2) fingerprint; and
(3) picture identification.

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13-32a-103.5. Applicability to coin dealers.This chapter applies to coin dealers, except where provisions otherwise specifically address coin dealers. 13-32a-103.5. Applicability to coin dealers.This chapter applies to coin dealers, except where provisions otherwise specifically address coin dealers.

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13-32a-104. Register required to be maintained -- Contents -- Identification of items. (1) Every pawnbroker or secondhand merchandise dealer shall keep a register of each article of property a person pawns or sells to the pawnbroker or secondhand merchandise dealer, except as provided in Subsection 13-32a-102(23)(b). Every pawn and secondhand business owner or operator, or his employee, shall enter the following information regarding every article pawned or sold to the owner or employee:
(a) the date and time of the transaction;
(b) the pawn transaction ticket number, if the article is pawned;
(c) the date by which the article must be redeemed;
(d) the following information regarding the person who pawns or sells the article:
(i) the person's name, residence address, and date of birth;
(ii) the number of the driver license or other form of positive identification presented by the person, and notations of discrepancies if the person's physical description, including gender, height, weight, race, age, hair color, and eye color, does not correspond with identification provided by the person;
(iii) the person's signature; and
(iv) a legible fingerprint of the person's right thumb, or if the right thumb cannot be fingerprinted, a legible fingerprint of the person with a written notation identifying the fingerprint and the reason why the thumb print was unavailable;
(e) the amount loaned on or paid for the article, or the article for which it was traded;
(f) the identification of the pawn or secondhand business owner or the employee, whoever is making the register entry; and
(g) an accurate description of the article of property, including available identifying marks such as:
(i) names, brand names, numbers, serial numbers, model numbers, color, manufacturers' names, and size;
(ii) metallic composition, and any jewels, stones, or glass;
(iii) any other marks of identification or indicia of ownership on the article;
(iv) the weight of the article, if the payment is based on weight;
(v) any other unique identifying feature;
(vi) gold content, if indicated; and
(vii) if multiple articles of a similar nature are delivered together in one transaction and the articles do not bear serial or model numbers and do not include precious metals or gemstones, such as musical or video recordings, books, or hand tools, the description of the articles is adequate if it includes the quantity of the articles and a description of the type of articles delivered.
(2) A pawn or secondhand business may not accept any personal property if, upon inspection, it is apparent that serial numbers, model names, or identifying characteristics have been intentionally defaced on that article of property.
13-32a-104. Register required to be maintained -- Contents -- Identification of items. (1) Every pawnbroker or secondhand merchandise dealer shall keep a register of each article of property a person pawns or sells to the pawnbroker or secondhand merchandise dealer, except as provided in Subsection 13-32a-102(23)(b). Every pawn and secondhand business owner or operator, or his employee, shall enter the following information regarding every article pawned or sold to the owner or employee:
(a) the date and time of the transaction;
(b) the pawn transaction ticket number, if the article is pawned;
(c) the date by which the article must be redeemed;
(d) the following information regarding the person who pawns or sells the article:
(i) the person's name, residence address, and date of birth;
(ii) the number of the driver license or other form of positive identification presented by the person, and notations of discrepancies if the person's physical description, including gender, height, weight, race, age, hair color, and eye color, does not correspond with identification provided by the person;
(iii) the person's signature; and
(iv) a legible fingerprint of the person's right thumb, or if the right thumb cannot be fingerprinted, a legible fingerprint of the person with a written notation identifying the fingerprint and the reason why the thumb print was unavailable;
(e) the amount loaned on or paid for the article, or the article for which it was traded;
(f) the identification of the pawn or secondhand business owner or the employee, whoever is making the register entry; and
(g) an accurate description of the article of property, including available identifying marks such as:
(i) names, brand names, numbers, serial numbers, model numbers, color, manufacturers' names, and size;
(ii) metallic composition, and any jewels, stones, or glass;
(iii) any other marks of identification or indicia of ownership on the article;
(iv) the weight of the article, if the payment is based on weight;
(v) any other unique identifying feature;
(vi) gold content, if indicated; and
(vii) if multiple articles of a similar nature are delivered together in one transaction and the articles do not bear serial or model numbers and do not include precious metals or gemstones, such as musical or video recordings, books, or hand tools, the description of the articles is adequate if it includes the quantity of the articles and a description of the type of articles delivered.
(2) A pawn or secondhand business may not accept any personal property if, upon inspection, it is apparent that serial numbers, model names, or identifying characteristics have been intentionally defaced on that article of property.

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13-32a-104.5. Database information from coin dealers -- New and prior customers.(1) A coin dealer shall maintain in a register and provide for the database the information under this section for each transaction of a coin or precious metal with a person with whom the coin dealer has not previously conducted a transaction.
(2) For transactions under Subsection (1), the coin dealer or the coin dealer's employee shall enter the following information in the register regarding every coin or precious metal transaction:
(a) the date and time of the transaction;
(b) the receipt number;
(c) the following information regarding the person who sells the coin or precious metal:
(i) the person's name, residence address, and date of birth;
(ii) the number of the driver license or other form of positive identification presented by the person, and notations of discrepancies if the person's physical description, including gender, height, weight, race, age, hair color, and eye color, does not correspond with identification provided by the person;
(iii) the person's signature; and
(iv) a legible fingerprint of the person's right thumb, or if the right thumb cannot be fingerprinted, a legible fingerprint of the person with a written notation identifying the fingerprint and the reason why the thumb print was unavailable;
(d) the amount paid for the article, or the article for which it was traded;
(e) the identification of the coin dealer or the employee who is conducting the transaction; and
(f) an accurate description of the coin or precious metal, including available identifying marks such as:
(i) type and name of coin or type and content of precious metal;
(ii) metallic composition, and any jewels, stones, or glass;
(iii) any other marks of identification or indicia of ownership on the article;
(iv) the weight of the article, if the payment is based on weight;
(v) any other unique identifying feature; and
(vi) metallic content.
(3) If multiple coins or precious metals in an amount that would make reporting of each item unreasonably difficult are part of a single sale transaction, a general description of the items and a photograph of the items, which shall be stored by the coin dealer with a copy of the invoice of the transaction for three years from the date of the transaction.
(4) If the person selling a coin or precious metal to the coin dealer has an established previous transaction history with the coin dealer, the coin dealer or the coin dealer's employee shall enter the following information in the register:
(a) the date and time of the transaction;
(b) indication that the coin dealer has conducted business with the seller previously;
(c) the identification of the coin dealer or the employee who is conducting the transaction;
(d) the initials of the seller's legal name, including any middle name;
(e) form of identification presented by the seller at the time of sale;
(f) the last four digits of the unique identifying number on the form of identification; and
(g) the identifying information under Subsection (2)(f) and under Subsection (3) as

applicable.
(5) A coin dealer may not accept any coin or precious metal if, upon inspection, it is apparent that serial numbers or identifying characteristics have been intentionally defaced on that coin or precious metal.
13-32a-104.5. Database information from coin dealers -- New and prior customers.(1) A coin dealer shall maintain in a register and provide for the database the information under this section for each transaction of a coin or precious metal with a person with whom the coin dealer has not previously conducted a transaction.
(2) For transactions under Subsection (1), the coin dealer or the coin dealer's employee shall enter the following information in the register regarding every coin or precious metal transaction:
(a) the date and time of the transaction;
(b) the receipt number;
(c) the following information regarding the person who sells the coin or precious metal:
(i) the person's name, residence address, and date of birth;
(ii) the number of the driver license or other form of positive identification presented by the person, and notations of discrepancies if the person's physical description, including gender, height, weight, race, age, hair color, and eye color, does not correspond with identification provided by the person;
(iii) the person's signature; and
(iv) a legible fingerprint of the person's right thumb, or if the right thumb cannot be fingerprinted, a legible fingerprint of the person with a written notation identifying the fingerprint and the reason why the thumb print was unavailable;
(d) the amount paid for the article, or the article for which it was traded;
(e) the identification of the coin dealer or the employee who is conducting the transaction; and
(f) an accurate description of the coin or precious metal, including available identifying marks such as:
(i) type and name of coin or type and content of precious metal;
(ii) metallic composition, and any jewels, stones, or glass;
(iii) any other marks of identification or indicia of ownership on the article;
(iv) the weight of the article, if the payment is based on weight;
(v) any other unique identifying feature; and
(vi) metallic content.
(3) If multiple coins or precious metals in an amount that would make reporting of each item unreasonably difficult are part of a single sale transaction, a general description of the items and a photograph of the items, which shall be stored by the coin dealer with a copy of the invoice of the transaction for three years from the date of the transaction.
(4) If the person selling a coin or precious metal to the coin dealer has an established previous transaction history with the coin dealer, the coin dealer or the coin dealer's employee shall enter the following information in the register:
(a) the date and time of the transaction;
(b) indication that the coin dealer has conducted business with the seller previously;
(c) the identification of the coin dealer or the employee who is conducting the transaction;
(d) the initials of the seller's legal name, including any middle name;
(e) form of identification presented by the seller at the time of sale;
(f) the last four digits of the unique identifying number on the form of identification; and
(g) the identifying information under Subsection (2)(f) and under Subsection (3) as

applicable.
(5) A coin dealer may not accept any coin or precious metal if, upon inspection, it is apparent that serial numbers or identifying characteristics have been intentionally defaced on that coin or precious metal.

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13-32a-105. Central database. (1) There is created under this section a central database as a statewide repository for all information pawn and secondhand businesses and coin dealers are required to submit in accordance with this chapter and for the use of all participating law enforcement agencies whose jurisdictions include one or more pawn or secondhand businesses.
(2) The Division of Purchasing and General Services created in Title 63A, Chapter 2, shall:
(a) meet with the board to determine the required elements of the database; and
(b) conduct a statewide request for proposal for the creation of and maintenance of the central database.
(3) Funding for the creation and operation of the central database shall be from the account.
(4) (a) Any entity submitting a bid to create, maintain, and operate the database pursuant to the request for proposal conducted by the Division of Purchasing and General Services may not hold any financial or operating interest in any pawnshop in any state.
(b) The Division of Purchasing and General Services, in conjunction with the Pawnshop and Secondhand Merchandise Advisory Board, shall verify before a bid is awarded that the selected entity meets the requirements of Subsection (4)(a).
(c) If any entity is awarded a bid under this Subsection (4) and is later found to hold any interest in violation of Subsection (4)(a), the award is subject to being opened again for request for proposal.
(5) Information entered in the database shall be retained for five years and shall then be deleted.
13-32a-105. Central database. (1) There is created under this section a central database as a statewide repository for all information pawn and secondhand businesses and coin dealers are required to submit in accordance with this chapter and for the use of all participating law enforcement agencies whose jurisdictions include one or more pawn or secondhand businesses.
(2) The Division of Purchasing and General Services created in Title 63A, Chapter 2, shall:
(a) meet with the board to determine the required elements of the database; and
(b) conduct a statewide request for proposal for the creation of and maintenance of the central database.
(3) Funding for the creation and operation of the central database shall be from the account.
(4) (a) Any entity submitting a bid to create, maintain, and operate the database pursuant to the request for proposal conducted by the Division of Purchasing and General Services may not hold any financial or operating interest in any pawnshop in any state.
(b) The Division of Purchasing and General Services, in conjunction with the Pawnshop and Secondhand Merchandise Advisory Board, shall verify before a bid is awarded that the selected entity meets the requirements of Subsection (4)(a).
(c) If any entity is awarded a bid under this Subsection (4) and is later found to hold any interest in violation of Subsection (4)(a), the award is subject to being opened again for request for proposal.
(5) Information entered in the database shall be retained for five years and shall then be deleted.

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13-32a-106. Transaction information provided to the central database -- Protected information.(1) The information required to be recorded under Sections 13-32a-103 and 13-32a-104 that is capable of being transmitted electronically shall be transmitted electronically to the central database on the next business day following the transaction.
(2) The pawnbroker shall maintain all pawn tickets generated by the pawnshop and shall maintain the tickets in a manner so that the tickets are available to local law enforcement agencies as required by this chapter and as requested by any law enforcement agency as part of an investigation or reasonable random inspection conducted pursuant to this chapter.
(3) (a) If a pawn or secondhand business experiences a computer or electronic malfunction that affects its ability to report transactions as required in Subsection (1), the pawn or secondhand business shall immediately notify the local law enforcement agency of the malfunction.
(b) The pawn or secondhand business shall solve the malfunction within three business days or notify law enforcement under Subsection (4).
(4) If the computer or electronic malfunction under Subsection (3) cannot be solved within three business days, the pawn or secondhand business shall notify the local law enforcement agency of the reasons for the delay and provide documentation from a reputable computer maintenance company of the reasons why the computer or electronic malfunction cannot be solved within three business days.
(5) A computer or electronic malfunction does not suspend the pawn or secondhand business' obligation to comply with all other provisions of this chapter.
(6) During the malfunction under Subsections (3) and (4), the pawn or secondhand business shall:
(a) arrange with the local law enforcement agency a mutually acceptable alternative method by which the pawn or secondhand business provides the required information to the local law enforcement official; and
(b) a pawnshop shall maintain the pawn tickets and other related information required under this chapter in a written form.
(7) A pawn or secondhand business that violates the electronic transaction reporting requirement of this section is subject to an administrative fine of $50 per day if:
(a) the pawn or secondhand business is unable to submit the information electronically due to a computer or electronic malfunction;
(b) the three business day period under Subsection (3) has expired; and
(c) the pawn or secondhand business has not provided documentation regarding its inability to solve the malfunction as required under Subsection (4).
(8) A pawn or secondhand business is not responsible for a delay in transmission of information that results from a malfunction in the central database.
13-32a-106. Transaction information provided to the central database -- Protected information.(1) The information required to be recorded under Sections 13-32a-103 and 13-32a-104 that is capable of being transmitted electronically shall be transmitted electronically to the central database on the next business day following the transaction.
(2) The pawnbroker shall maintain all pawn tickets generated by the pawnshop and shall maintain the tickets in a manner so that the tickets are available to local law enforcement agencies as required by this chapter and as requested by any law enforcement agency as part of an investigation or reasonable random inspection conducted pursuant to this chapter.
(3) (a) If a pawn or secondhand business experiences a computer or electronic malfunction that affects its ability to report transactions as required in Subsection (1), the pawn or secondhand business shall immediately notify the local law enforcement agency of the malfunction.
(b) The pawn or secondhand business shall solve the malfunction within three business days or notify law enforcement under Subsection (4).
(4) If the computer or electronic malfunction under Subsection (3) cannot be solved within three business days, the pawn or secondhand business shall notify the local law enforcement agency of the reasons for the delay and provide documentation from a reputable computer maintenance company of the reasons why the computer or electronic malfunction cannot be solved within three business days.
(5) A computer or electronic malfunction does not suspend the pawn or secondhand business' obligation to comply with all other provisions of this chapter.
(6) During the malfunction under Subsections (3) and (4), the pawn or secondhand business shall:
(a) arrange with the local law enforcement agency a mutually acceptable alternative method by which the pawn or secondhand business provides the required information to the local law enforcement official; and
(b) a pawnshop shall maintain the pawn tickets and other related information required under this chapter in a written form.
(7) A pawn or secondhand business that violates the electronic transaction reporting requirement of this section is subject to an administrative fine of $50 per day if:
(a) the pawn or secondhand business is unable to submit the information electronically due to a computer or electronic malfunction;
(b) the three business day period under Subsection (3) has expired; and
(c) the pawn or secondhand business has not provided documentation regarding its inability to solve the malfunction as required under Subsection (4).
(8) A pawn or secondhand business is not responsible for a delay in transmission of information that results from a malfunction in the central database.

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13-32a-106.5. Confidentiality of pawn and purchase transactions.(1) All pawn and purchase transaction records delivered to a local law enforcement official or transmitted to the central database pursuant to Section 13-32a-106 are protected records under Section 63G-2-305. These records may be used only by law enforcement officials and the division and only for the law enforcement and administrative enforcement purposes of:
(a) investigating possible criminal conduct involving the property delivered to the pawnbroker or secondhand business in a pawn or purchase transaction;
(b) investigating a possible violation of the record keeping or reporting requirements of this chapter when the local law enforcement official, 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 a person claiming ownership of described property by searching the database to determine if property matching the description has been delivered to a pawnbroker or secondhand business by another person in a pawn or purchase transaction and if so, obtaining from the database:
(i) a description of the property;
(ii) the name and address of the pawnbroker or secondhand business who received the property; and
(iii) the name, address, and date of birth of the conveying person; and
(d) taking enforcement action under Section 13-2-5 against a pawnbroker or secondhand business.
(2) (a) A person may not knowingly and intentionally use, release, publish, or otherwise make available to any person or entity any information obtained from the database for any purpose other than those specified in Subsection (1).
(b) Each separate violation of Subsection (2)(a) is a class B misdemeanor.
(c) Each separate violation of Subsection (2)(a) is subject to a civil penalty not to exceed $250.
13-32a-106.5.   Confidentiality of pawn and purchase transactions.(1) All pawn and purchase transaction records delivered to a local law enforcement official or transmitted to the central database pursuant to Section 13-32a-106 are protected records under Section 63G-2-305. These records may be used only by law enforcement officials and the division and only for the law enforcement and administrative enforcement purposes of:
(a) investigating possible criminal conduct involving the property delivered to the pawnbroker or secondhand business in a pawn or purchase transaction;
(b) investigating a possible violation of the record keeping or reporting requirements of this chapter when the local law enforcement official, 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 a person claiming ownership of described property by searching the database to determine if property matching the description has been delivered to a pawnbroker or secondhand business by another person in a pawn or purchase transaction and if so, obtaining from the database:
(i) a description of the property;
(ii) the name and address of the pawnbroker or secondhand business who received the property; and
(iii) the name, address, and date of birth of the conveying person; and
(d) taking enforcement action under Section 13-2-5 against a pawnbroker or secondhand business.
(2) (a) A person may not knowingly and intentionally use, release, publish, or otherwise make available to any person or entity any information obtained from the database for any purpose other than those specified in Subsection (1).
(b) Each separate violation of Subsection (2)(a) is a class B misdemeanor.
(c) Each separate violation of Subsection (2)(a) is subject to a civil penalty not to exceed $250.

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13-32a-107. Deadline for registers to be electronic -- Notice for updating.(1) On and after January 1, 2005, each pawn and secondhand business in the state that generates ten or more pawn transactions per month or 50 or more sales transactions per month shall maintain the register in an electronic format that is compatible with the central database computer system.

(2) (a) On and after January 15, 2005, pawn and secondhand businesses under Subsection (1) are subject to an administrative fine of $ 50 a day for each daily report required under Section 13-32a-106 that is submitted as a written report rather than electronically.

(b) Fines imposed under this section shall be paid to the division, which shall deposit the fines in the account.

(3) The operators of the central database shall establish written procedures in conjunction with the Pawnshop and Secondhand Merchandise Advisory Board to ensure that when the central database is upgraded, the affected pawn and secondhand businesses will receive adequate notice, information, and time to upgrade their computer systems so the systems are compatible with the upgraded central database.
13-32a-107. Deadline for registers to be electronic -- Notice for updating.(1) (a) On and after January 1, 2005, each pawn and secondhand business in the state that generates 10 or more pawn transactions per month or 50 or more sales transactions per month shall maintain the register in an electronic format that is compatible with the central database computer system.
(b) On and after January 1, 2011, each pawn and secondhand business in the state shall maintain the register in an electronic format that is compatible with the central database computer system.
(2) (a) (i) On and after January 15, 2005, pawn and secondhand businesses under Subsection (1)(a) are subject to an administrative fine of $50 a day for each daily report required under Section 13-32a-106 that is submitted as a written report rather than electronically.
(ii) On and after January 1, 2011, pawn and secondhand businesses under Subsection (1)(b) are subject to an administrative fine of $50 a day for each daily report required under Section 13-32a-106 that is submitted as a written report rather than electronically.
(b) Fines imposed under this section shall be paid to the division, which shall deposit the fines in the account.
(3) The operators of the central database shall establish written procedures in conjunction with the Pawnshop and Secondhand Merchandise Advisory Board to ensure that when the central database is upgraded, the affected pawn and secondhand businesses will receive adequate notice, information, and time to upgrade their computer systems so the systems are compatible with the upgraded central database.

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13-32a-108. Retention of records -- Reasonable inspection.(1) The pawnbroker or law enforcement agency, whichever has custody of pawn tickets, shall retain them for no less than three years from the date of the transaction.
(2) (a) A law enforcement agency may conduct random reasonable inspections of pawn or secondhand businesses for the purpose of monitoring compliance with the reporting requirements of this chapter. The inspections may be conducted to:
(i) confirm that pawned or sold items match the description reported to the database by the pawnshop; and
(ii) make spot checks of property at the pawn or secondhand business to determine if the property is appropriately reported.
(b) Inspections under Subsection (2)(a) shall be performed during the regular business hours of the pawn or secondhand business.
13-32a-108. Retention of records -- Reasonable inspection.(1) The pawnbroker or law enforcement agency, whichever has custody of pawn tickets, shall retain them for no less than three years from the date of the transaction.
(2) (a) A law enforcement agency may conduct random reasonable inspections of pawn or secondhand businesses for the purpose of monitoring compliance with the reporting requirements of this chapter. The inspections may be conducted to:
(i) confirm that pawned or sold items match the description reported to the database by the pawnshop; and
(ii) make spot checks of property at the pawn or secondhand business to determine if the property is appropriately reported.
(b) Inspections under Subsection (2)(a) shall be performed during the regular business hours of the pawn or secondhand business.

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13-32a-109. Holding period for articles.(1) (a) The pawnbroker may sell any article pawned to the pawnbroker:
(i) after the expiration of the contract period between the pawnbroker and the pledgor; and
(ii) if the pawnbroker has complied with the requirements of Section 13-32a-106 regarding reporting to the central database and Section 13-32a-103.
(b) If an article, including scrap jewelry, is purchased by a pawn or secondhand business or a coin dealer, the pawn or secondhand business or coin dealer may sell the article after the pawn or secondhand business or coin dealer has held the article for 15 days and complied with the requirements of Section 13-32a-106 regarding reporting to the central database and Section 13-32a-103, except that pawn, secondhand, and coin dealer businesses are not required to hold precious metals or coins under this Subsection (1)(b).
(c) This Subsection (1) does not preclude a law enforcement agency from requiring a pawn or secondhand business to hold an article if necessary in the course of an investigation.
(i) If the article was pawned, the law enforcement agency may require the article be held beyond the terms of the contract between the pledgor and the pawn broker.
(ii) If the article was sold to the pawn or secondhand business, the law enforcement agency may require the article be held if the pawn or secondhand business has not sold the article.
(d) If the law enforcement agency requesting a hold on property under this Subsection (1) is not the local law enforcement agency, the requesting law enforcement agency shall notify the local law enforcement agency of the request and also the pawn or secondhand business.
(2) If a law enforcement agency requires the pawn or secondhand business to hold an article as part of an investigation, the agency shall provide to the pawn or secondhand business a hold ticket issued by the agency, which:
(a) states the active case number;
(b) confirms the date of the hold request and the article to be held; and
(c) facilitates the ability of the pawn or secondhand business to track the article when the prosecution takes over the case.
(3) If an article is not seized by a law enforcement agency that has placed a hold on the property, the property may remain in the custody of the pawn or secondhand business until further disposition by the law enforcement agency, and as consistent with this chapter.
(4) The initial hold by a law enforcement agency is for a period of 90 days. If the article is not seized by the law enforcement agency, the article shall remain in the custody of the pawn or secondhand business and is subject to the hold unless exigent circumstances require the purchased or pawned article to be seized by the law enforcement agency.
(5) (a) A law enforcement agency may extend any hold for up to an additional 90 days when exigent circumstances require the extension.
(b) When there is an extension of a hold under Subsection (5)(a), the requesting law enforcement agency shall notify the pawn or secondhand business that is subject to the hold prior to the expiration of the initial 90 days.
(c) A law enforcement agency may not hold an item for more than the 180 days allowed under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.
(6) A hold on an article under Subsection (2) takes precedence over any request to claim or purchase the article subject to the hold.

(7) When the purpose for the hold on or seizure of an article is terminated, the law enforcement agency requiring the hold or seizure shall within 15 days after the termination:
(a) notify the pawn or secondhand business in writing that the hold or seizure has been terminated;
(b) return the article subject to the seizure to the pawn or secondhand business; or
(c) if the article is not returned to the pawn or secondhand business, advise the pawn or secondhand business either in writing or electronically of the specific alternative disposition of the article.
13-32a-109. Holding period for articles.(1) (a) The pawnbroker may sell any article pawned to the pawnbroker:
(i) after the expiration of the contract period between the pawnbroker and the pledgor; and
(ii) if the pawnbroker has complied with the requirements of Section 13-32a-106 regarding reporting to the central database and Section 13-32a-103.
(b) If an article, including scrap jewelry, is purchased by a pawn or secondhand business or a coin dealer, the pawn or secondhand business or coin dealer may sell the article after the pawn or secondhand business or coin dealer has held the article for 15 days and complied with the requirements of Section 13-32a-106 regarding reporting to the central database and Section 13-32a-103, except that pawn, secondhand, and coin dealer businesses are not required to hold precious metals or coins under this Subsection (1)(b).
(c) This Subsection (1) does not preclude a law enforcement agency from requiring a pawn or secondhand business to hold an article if necessary in the course of an investigation.
(i) If the article was pawned, the law enforcement agency may require the article be held beyond the terms of the contract between the pledgor and the pawn broker.
(ii) If the article was sold to the pawn or secondhand business, the law enforcement agency may require the article be held if the pawn or secondhand business has not sold the article.
(d) If the law enforcement agency requesting a hold on property under this Subsection (1) is not the local law enforcement agency, the requesting law enforcement agency shall notify the local law enforcement agency of the request and also the pawn or secondhand business.
(2) If a law enforcement agency requires the pawn or secondhand business to hold an article as part of an investigation, the agency shall provide to the pawn or secondhand business a hold ticket issued by the agency, which:
(a) states the active case number;
(b) confirms the date of the hold request and the article to be held; and
(c) facilitates the ability of the pawn or secondhand business to track the article when the prosecution takes over the case.
(3) If an article is not seized by a law enforcement agency that has placed a hold on the property, the property may remain in the custody of the pawn or secondhand business until further disposition by the law enforcement agency, and as consistent with this chapter.
(4) The initial hold by a law enforcement agency is for a period of 90 days. If the article is not seized by the law enforcement agency, the article shall remain in the custody of the pawn or secondhand business and is subject to the hold unless exigent circumstances require the purchased or pawned article to be seized by the law enforcement agency.
(5) (a) A law enforcement agency may extend any hold for up to an additional 90 days when exigent circumstances require the extension.
(b) When there is an extension of a hold under Subsection (5)(a), the requesting law enforcement agency shall notify the pawn or secondhand business that is subject to the hold prior to the expiration of the initial 90 days.
(c) A law enforcement agency may not hold an item for more than the 180 days allowed under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.
(6) A hold on an article under Subsection (2) takes precedence over any request to claim or purchase the article subject to the hold.

(7) When the purpose for the hold on or seizure of an article is terminated, the law enforcement agency requiring the hold or seizure shall within 15 days after the termination:
(a) notify the pawn or secondhand business in writing that the hold or seizure has been terminated;
(b) return the article subject to the seizure to the pawn or secondhand business; or
(c) if the article is not returned to the pawn or secondhand business, advise the pawn or secondhand business either in writing or electronically of the specific alternative disposition of the article.

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13-32a-109.5. Seizure of property.(1) If a law enforcement agency determines seizure of pawned or sold property is necessary during the course of a criminal investigation in addition to the holding provisions under Section 13-32a-109, the law enforcement agency shall:
(a) notify the pawnshop of the specific item to be seized;
(b) issue to the pawnshop a seizure ticket in a form approved by the division and that:
(i) provides the active case number related to the item to be seized;
(ii) provides the date of the seizure request;
(iii) describes the article to be seized; and
(iv) includes any information that facilitates the pawnbroker's ability to track the article when the prosecution agency takes over the case.
(2) If the law enforcement agency seizing the pawned or sold property is not the local law enforcement agency, the seizing agency shall, in addition to compliance with Subsection (1):
(a) notify the local law enforcement agency prior to any seizure; and
(b) facilitate the seizure of the pawned property in cooperation with the local law enforcement agency to provide the pawnshop or secondhand business the ability to monitor the proceedings under Section 13-32a-109.8.
13-32a-109.5. Seizure of property.(1) If a law enforcement agency determines seizure of pawned or sold property is necessary during the course of a criminal investigation in addition to the holding provisions under Section 13-32a-109, the law enforcement agency shall:
(a) notify the pawnshop of the specific item to be seized;
(b) issue to the pawnshop a seizure ticket in a form approved by the division and that:
(i) provides the active case number related to the item to be seized;
(ii) provides the date of the seizure request;
(iii) describes the article to be seized; and
(iv) includes any information that facilitates the pawnbroker's ability to track the article when the prosecution agency takes over the case.
(2) If the law enforcement agency seizing the pawned or sold property is not the local law enforcement agency, the seizing agency shall, in addition to compliance with Subsection (1):
(a) notify the local law enforcement agency prior to any seizure; and
(b) facilitate the seizure of the pawned property in cooperation with the local law enforcement agency to provide the pawnshop or secondhand business the ability to monitor the proceedings under Section 13-32a-109.8.

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13-32a-109.8. Pawned or sold property subject to law enforcement investigation.(1) If the article pawned or sold under Section 13-32a-109 is subject to an investigation and a criminal prosecution results, the prosecuting agency shall, prior to disposition of the case:

(a) request restitution to the pawn or secondhand business for the crimes perpetrated against the pawn or secondhand business as a victim of theft by deception; and

(b) request restitution for the original victim.

(2) If the original victim of the theft of the property files a police report and the property is subsequently located at a pawn or secondhand business, the victim must fully cooperate with the prosecution of the crimes perpetrated against the pawn or secondhand business as a victim of theft by deception, in order to qualify for restitution regarding the property.

(3) If the original victim does not pursue criminal charges or does not cooperate in the prosecution of the property theft crimes charged against the defendant and the theft by deception charges committed against the pawn or secondhand business, then the original victim must pay to the pawn or secondhand business the amount of money financed or paid by the pawn or secondhand business to the defendant in order to obtain the property.

(4) (a) The victim's cooperation in the prosecution of the property crimes and in the prosecution of the theft by deception offense committed against the pawn or secondhand business suspends the requirements of Subsections (2) and (3).

(b) If the victim cooperates in the prosecution under Subsection (4)(a) and the defendants are convicted, the prosecuting agency shall direct the pawn or secondhand business to turn over the property to the victim.

(c) Upon receipt of notice from the prosecuting agency that the property must be turned over to the victim, the pawn or secondhand business shall return the property to the victim as soon as reasonably possible.

(5) A pawn or secondhand business must fully cooperate in the prosecution of the property crimes committed against the original victim and the property crime of theft by deception committed against the pawn or secondhand business in order to participate in any court-ordered restitution.

(6) At all times during the course of a criminal investigation and subsequent prosecution, the article subject to a law enforcement hold shall be kept secure by the pawn or secondhand business subject to the hold unless a pawned article has been seized by the law enforcement agency pursuant to Section 13-32a-109.5.
13-32a-109.8. Pawned or sold property subject to law enforcement investigation.(1) If the article pawned or sold under Section 13-32a-109 is subject to an investigation and a criminal prosecution results, the prosecuting agency shall, prior to disposition of the case:
(a) request restitution to the pawn or secondhand business for the crimes perpetrated against the pawn or secondhand business as a victim of theft by deception; and
(b) request restitution for the original victim.
(2) If the original victim of the theft of the property files a police report and the property is subsequently located at a pawn or secondhand business, the victim shall fully cooperate with the prosecution of the crimes perpetrated against the pawn or secondhand business as a victim of theft by deception, in order to qualify for restitution regarding the property.
(3) If the original victim does not pursue criminal charges or does not cooperate in the prosecution of the property theft crimes charged against the defendant and the theft by deception charges committed against the pawn or secondhand business, then the original victim shall pay to the pawn or secondhand business the amount of money financed or paid by the pawn or secondhand business to the defendant in order to obtain the property.
(4) (a) The victim's cooperation in the prosecution of the property crimes and in the prosecution of the theft by deception offense committed against the pawn or secondhand business suspends the requirements of Subsections (2) and (3).
(b) If the victim cooperates in the prosecution under Subsection (4)(a) and the defendants are convicted, the prosecuting agency shall direct the pawn or secondhand business to turn over the property to the victim.
(c) Upon receipt of notice from the prosecuting agency that the property must be turned over to the victim, the pawn or secondhand business shall return the property to the victim as soon as reasonably possible.
(5) A pawn or secondhand business shall fully cooperate in the prosecution of the property crimes committed against the original victim and the property crime of theft by deception committed against the pawn or secondhand business in order to participate in any court-ordered restitution.
(6) At all times during the course of a criminal investigation and subsequent prosecution, the article subject to a law enforcement hold shall be kept secure by the pawn or secondhand business subject to the hold unless a pawned or sold article has been seized by the law enforcement agency pursuant to Section 13-32a-109.5.

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13-32a-110. Penalties.(1) A violation of any of the following sections is subject to a civil penalty of not more than $500:
(a) Section 13-32a-104, register required to be maintained;
(b) Section 13-32a-106, transaction information provided to law enforcement;
(c) Section 13-32a-108, retention of records;
(d) Section 13-32a-109, holding period for pawned articles;
(e) Section 13-32a-111, payment of fees as required; or
(f) Section 13-32a-112, training requirements for pawn, secondhand, and coin dealer business employees and officers of participating law enforcement agencies.
(2) This section does not prohibit civil action by a governmental entity regarding the pawnbroker's business operation or licenses.
13-32a-110.   Penalties.(1) A violation of any of the following sections is subject to a civil penalty of not more than $500:
(a) Section 13-32a-104, register required to be maintained;
(b) Section 13-32a-106, transaction information provided to law enforcement;
(c) Section 13-32a-108, retention of records;
(d) Section 13-32a-109, holding period for pawned articles;
(e) Section 13-32a-111, payment of fees as required; or
(f) Section 13-32a-112, training requirements for pawn, secondhand, and coin dealer business employees and officers of participating law enforcement agencies.
(2) This section does not prohibit civil action by a governmental entity regarding the pawnbroker's business operation or licenses.

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13-32a-111. Fees to fund training and central database.(1) (a) On and after January 1, 2005, each pawnshop or secondhand merchandise dealer in operation shall annually pay $250 to the division, to be deposited in the account.
(b) For the period of July 1, 2009 through December 31, 2009, each coin dealer in operation shall pay a fee of $250 to the division to be deposited in the account.
(c) On and after January 1, 2010, each coin dealer in operation shall annually on January 1 pay $250 to the division to be deposited in the account.
(2) On and after January 1, 2005, each law enforcement agency that participates in the use of the database shall annually pay to the division a fee of $2 per sworn law enforcement officer who is employed by the agency as of January 1 of that year. The fee shall be deposited in the account.
(3) The fees under Subsections (1) and (2) shall be paid to the account annually on or before January 30.
(4) (a) If a law enforcement agency outside Utah requests access to the central database, the requesting agency shall pay a yearly fee of $750 for the fiscal year beginning July 1, 2006, which shall be deposited in the account.
(b) The board may establish the fee amount for fiscal years beginning on and after July 1, 2007 under Section 63J-1-504.
13-32a-111. Fees to fund training and central database.(1) (a) On and after January 1, 2005, each pawnshop or secondhand merchandise dealer in operation shall annually pay $250 to the division, to be deposited in the account.
(b) For the period of July 1, 2009 through December 31, 2009, each coin dealer in operation shall pay a fee of $250 to the division to be deposited in the account.
(c) On and after January 1, 2010, each coin dealer in operation shall annually on January 1 pay $250 to the division to be deposited in the account.
(2) On and after January 1, 2005, each law enforcement agency that participates in the use of the database shall annually pay to the division a fee of $2 per sworn law enforcement officer who is employed by the agency as of January 1 of that year. The fee shall be deposited in the account.
(3) The fees under Subsections (1) and (2) shall be paid to the account annually on or before January 30.
(4) (a) If a law enforcement agency outside Utah requests access to the central database, the requesting agency shall pay a yearly fee of $750 for the fiscal year beginning July 1, 2006, which shall be deposited in the account.
(b) The board may establish the fee amount for fiscal years beginning on and after July 1, 2007 under Section 63J-1-504.

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13-32a-112. Secondhand Merchandise Advisory Board -- Membership -- Duties -- Providing training -- Records of compliance -- Training compliance -- Rulemaking.(1) There is created within the division the Secondhand Merchandise Advisory Board. The board consists of 11 voting members and one nonvoting member:
(a) one representative of the Utah Chiefs of Police Association;
(b) one representative of the Utah Sheriffs Association;
(c) one representative of the Statewide Association of Prosecutors;
(d) three representatives from the pawnshop industry, two representatives from the secondhand merchandise business industry, and one representative from the coin dealer industry who are all appointed by the director of the Utah Commission on Criminal and Juvenile Justice and who represent three separate pawnshops, two separate secondhand merchandise dealers, and one coin dealer, each of which are owned by a separate person or entity;
(e) one law enforcement officer who is appointed by the board members under Subsections (1)(a) through (d);
(f) one law enforcement officer whose work regularly involves pawn and secondhand businesses and who is appointed by the board members under Subsections (1)(a) through (d); and
(g) one representative from the central database, who is nonvoting.
(2) (a) The board shall elect one voting member as the chair of the board by a majority of the members present at the board's first meeting each year.
(b) The chair shall preside over the board for a period of one year.
(c) The advisory board shall meet quarterly upon the call of the chair.
(3) (a) The board shall conduct quarterly training sessions regarding compliance with this chapter and other applicable state laws for any person who owns or is employed by a pawn or secondhand business subject to this chapter.
(b) Each training session shall provide no fewer than two hours of training.
(4) (a) Each pawn, secondhand, and coin dealer business in operation as of January 1 shall ensure one or more persons employed by the pawn or secondhand business each participate in no fewer than two hours of compliance training within that year.
(b) This requirement does not limit the number of employees, directors, or officers of a pawn or secondhand business who attend the compliance training.
(5) The board shall monitor and keep a record of the hours of compliance training accrued by each pawn or secondhand business.
(6) The board shall provide each pawn or secondhand business with a certificate of compliance upon completion by an employee of the two hours of compliance training under Subsection (4).
(7) (a) Each law enforcement agency that has a pawn or secondhand business located within its jurisdiction shall ensure that at least one of its officers completes two hours of compliance training yearly.
(b) Subsection (7)(a) does not limit the number of law enforcement officers who attend the compliance training.
13-32a-112. Secondhand Merchandise Advisory Board -- Membership -- Duties -- Providing training -- Records of compliance -- Training compliance -- Rulemaking.(1) There is created within the division the Secondhand Merchandise Advisory Board. The board consists of 11 voting members and one nonvoting member:
(a) one representative of the Utah Chiefs of Police Association;
(b) one representative of the Utah Sheriffs Association;
(c) one representative of the Statewide Association of Prosecutors;
(d) three representatives from the pawnshop industry, two representatives from the secondhand merchandise business industry, and one representative from the coin dealer industry who are all appointed by the director of the Utah Commission on Criminal and Juvenile Justice and who represent three separate pawnshops, two separate secondhand merchandise dealers, and one coin dealer, each of which are owned by a separate person or entity;
(e) one law enforcement officer who is appointed by the board members under Subsections (1)(a) through (d);
(f) one law enforcement officer whose work regularly involves pawn and secondhand businesses and who is appointed by the board members under Subsections (1)(a) through (d); and
(g) one representative from the central database, who is nonvoting.
(2) (a) The board shall elect one voting member as the chair of the board by a majority of the members present at the board's first meeting each year.
(b) The chair shall preside over the board for a period of one year.
(c) The advisory board shall meet quarterly upon the call of the chair.
(3) (a) The board shall conduct quarterly training sessions regarding compliance with this chapter and other applicable state laws for any person who owns or is employed by a pawn or secondhand business subject to this chapter.
(b) Each training session shall provide no fewer than two hours of training.
(4) (a) Each pawn, secondhand, and coin dealer business in operation as of January 1 shall ensure one or more persons employed by the pawn or secondhand business each participate in no fewer than two hours of compliance training within that year.
(b) This requirement does not limit the number of employees, directors, or officers of a pawn or secondhand business who attend the compliance training.
(5) The board shall monitor and keep a record of the hours of compliance training accrued by each pawn or secondhand business.
(6) The board shall provide each pawn or secondhand business with a certificate of compliance upon completion by an employee of the two hours of compliance training under Subsection (4).
(7) (a) Each law enforcement agency that has a pawn or secondhand business located within its jurisdiction shall ensure that at least one of its officers completes two hours of compliance training yearly.
(b) Subsection (7)(a) does not limit the number of law enforcement officers who attend the compliance training.

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13-32a-112.5. Division may exempt certain businesses by rule.(1) (a) The division may exempt specific classes of businesses from regulation under this chapter by rules made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) The division shall consult with the board in determining which classes of businesses to exempt under this section.
(2) Businesses the division may exempt are classes of commercial enterprises clearly defined by administrative rule and that do not involve transactions in property that is recognized by law enforcement as regularly subject to theft and subsequent efforts to pawn or sell.
13-32a-112.5. Division may exempt certain businesses by rule.(1) (a) The division may exempt specific classes of businesses from regulation under this chapter by rules made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) The division shall consult with the board in determining which classes of businesses to exempt under this section.
(2) Businesses the division may exempt are classes of commercial enterprises clearly defined by administrative rule and that do not involve transactions in property that is recognized by law enforcement as regularly subject to theft and subsequent efforts to pawn or sell.

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13-32a-113. Secondhand Merchandise Operations Restricted Account.(1) There is created within the General Fund a restricted account known as the Secondhand Merchandise Operations Restricted Account.
(2) (a) The account shall be funded from the fees and administrative fines imposed and collected under Sections 13-32a-106, 13-32a-107, 13-32a-110, and 13-32a-111. These fees and administrative fines shall be paid to the division, which shall deposit them in the account.
(b) The Legislature shall appropriate the funds in this account:
(i) to the board for the costs of providing training required under this chapter, costs of the central database created in Section 13-32a-105, and for costs of operation of the board; and
(ii) to the division for management of fees and penalties paid under this chapter.
(c) The board shall account to the division for expenditures.
(d) The board shall account separately for expenditures for:
(i) training required under this chapter;
(ii) operation of the database; and
(iii) operation of the board.
13-32a-113. Secondhand Merchandise Operations Restricted Account.(1) There is created within the General Fund a restricted account known as the Secondhand Merchandise Operations Restricted Account.
(2) (a) The account shall be funded from the fees and administrative fines imposed and collected under Sections 13-32a-106, 13-32a-107, 13-32a-110, and 13-32a-111. These fees and administrative fines shall be paid to the division, which shall deposit them in the account.
(b) The Legislature shall appropriate the funds in this account:
(i) to the board for the costs of providing training required under this chapter, costs of the central database created in Section 13-32a-105, and for costs of operation of the board; and
(ii) to the division for management of fees and penalties paid under this chapter.
(c) The board shall account to the division for expenditures.
(d) The board shall account separately for expenditures for:
(i) training required under this chapter;
(ii) operation of the database; and
(iii) operation of the board.

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13-32a-114. Preemption of local ordinances -- Exceptions.(1) This chapter preempts all city, county, and other local ordinances governing pawn or secondhand businesses and pawnbroking transactions, if the ordinances are more restrictive than the provisions of this chapter or are not consistent with this chapter.
(2) Subsection (1) does not preclude a city, county, or other local governmental unit from:
(a) enacting or enforcing local ordinances concerning public health, safety, or welfare, if the ordinances are uniform and equal in application to pawn and secondhand businesses and other retail businesses or activities;
(b) requiring a pawn or secondhand business to obtain and maintain a business license; and
(c) enacting zoning ordinances that restrict areas where pawn or secondhand businesses and other retail businesses or activities can be located.
13-32a-114. Preemption of local ordinances -- Exceptions.(1) This chapter preempts all city, county, and other local ordinances governing pawn or secondhand businesses and pawnbroking transactions, if the ordinances are more restrictive than the provisions of this chapter or are not consistent with this chapter.
(2) Subsection (1) does not preclude a city, county, or other local governmental unit from:
(a) enacting or enforcing local ordinances concerning public health, safety, or welfare, if the ordinances are uniform and equal in application to pawn and secondhand businesses and other retail businesses or activities;
(b) requiring a pawn or secondhand business to obtain and maintain a business license; and
(c) enacting zoning ordinances that restrict areas where pawn or secondhand businesses and other retail businesses or activities can be located.

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13-41-101. Title.This chapter is known as the "Price Controls During Emergencies Act." 13-41-101. Title.This chapter is known as the "Price Controls During Emergencies Act."

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13-41-102. Definitions. For purposes of this chapter:

(1) "Consumer" means a person who acquires a good or service for consumption.

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

(3) (a) "Emergency territory" means the geographical area:

(i) for which there has been a state of emergency declared; and

(ii) that is directly affected by the events giving rise to a state of emergency.

(b) "Emergency territory" does not include a geographical area that is affected by the events giving rise to a state of emergency only by economic market forces.

(4) "Excessive price" means a price for a good or service that exceeds by more than 10% the average price charged by that person for that good or service in the 30-day period immediately preceding the day on which the state of emergency is declared.

(5) "Good" means any personal property displayed, held, or offered for sale by a merchant that is necessary for consumption or use as a direct result of events giving rise to a state of emergency.

(6) "Retail" means the level of distribution where a good or service is typically sold directly, or otherwise provided, to a member of the public who is an end-user and does not resell the good or service.

(7) "Service" means any activity that is performed in whole or in part for the purpose of financial gain including, but not limited to, personal service, professional service, rental, leasing, or licensing for use that is necessary for consumption or use as a direct result of events giving rise to a state of emergency.

(8) "State of emergency" means a declaration of:

(a) an emergency or major disaster by the President of the United States of America; or

(b) a state of emergency by the governor under Section 63K-4-203.
13-41-102. Definitions.For purposes of this chapter:
(1) "Consumer" means a person who acquires a good or service for consumption.
(2) "Division" means the Division of Consumer Protection.
(3) (a) "Emergency territory" means the geographical area:
(i) for which there has been a state of emergency declared; and
(ii) that is directly affected by the events giving rise to a state of emergency.
(b) "Emergency territory" does not include a geographical area that is affected by the events giving rise to a state of emergency only by economic market forces.
(4) "Excessive price" means a price for a good or service that exceeds by more than 10% the average price charged by that person for that good or service in the 30-day period immediately preceding the day on which the state of emergency is declared.
(5) "Good" means any personal property displayed, held, or offered for sale by a merchant that is necessary for consumption or use as a direct result of events giving rise to a state of emergency.
(6) "Retail" means the level of distribution where a good or service is typically sold directly, or otherwise provided, to a member of the public who is an end-user and does not resell the good or service.
(7) "Service" means any activity that is performed in whole or in part for the purpose of financial gain including personal service, professional service, rental, leasing, or licensing for use that is necessary for consumption or use as a direct result of events giving rise to a state of emergency.
(8) "State of emergency" means a declaration of:
(a) an emergency or major disaster by the President of the United States of America; or
(b) a state of emergency by the governor under Section 63K-4-203.

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13-41-201. Excessive price prohibited.(1) Except as provided in Subsection (2), if a state of emergency exists, a person may not charge a consumer an excessive price for goods or services sold or provided at retail:
(a) (i) during the time period for which a state of emergency declared by the governor exists; or
(ii) for 30 days after the day on which the state of emergency begins, if declared by the President of the United States; and
(b) within the emergency territory.
(2) A person may charge an excessive price if:
(a) that person's cost of obtaining the good or providing the service exceeds the average cost to the person of obtaining the good or providing the service in the 30-day period immediately preceding the day on which the state of emergency is declared; and
(b) the price charged for the good or service does not exceed the sum of:
(i) 10% above the total cost to that person of obtaining the good or providing the service; and
(ii) the person's customary markup.
(3) Upon request of the division, a person allegedly charging an excessive price under Subsection (2) shall provide documentation to the division that the person is in compliance with this chapter.
(4) If a good or service has not been sold by a person during the 30-day period immediately preceding the day on which the state of emergency is declared, a price is not excessive if it does not exceed 30% above the person's total cost of obtaining the good or providing the service.
13-41-201. Excessive price prohibited.(1) Except as provided in Subsection (2), if a state of emergency exists, a person may not charge a consumer an excessive price for goods or services sold or provided at retail:
(a) (i) during the time period for which a state of emergency declared by the governor exists; or
(ii) for 30 days after the day on which the state of emergency begins, if declared by the President of the United States; and
(b) within the emergency territory.
(2) A person may charge an excessive price if:
(a) that person's cost of obtaining the good or providing the service exceeds the average cost to the person of obtaining the good or providing the service in the 30-day period immediately preceding the day on which the state of emergency is declared; and
(b) the price charged for the good or service does not exceed the sum of:
(i) 10% above the total cost to that person of obtaining the good or providing the service; and
(ii) the person's customary markup.
(3) Upon request of the division, a person allegedly charging an excessive price under Subsection (2) shall provide documentation to the division that the person is in compliance with this chapter.
(4) If a good or service has not been sold by a person during the 30-day period immediately preceding the day on which the state of emergency is declared, a price is not excessive if it does not exceed 30% above the person's total cost of obtaining the good or providing the service.

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13-41-202. Enforcement -- Penalty.(1) The division shall enforce this chapter.
(2) 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 cost to the person of 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.
(3) (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 (3)(b), impose an administrative fine of up to $1,000 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 (3)(a) exceed $10,000 per day.
(4) The division may sue in a court of competent jurisdiction to enforce an order under Subsection (3).
(5) In a suit brought under Subsection (3), 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.
(6) 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.
13-41-202. Enforcement -- Penalty.(1) The division shall enforce this chapter.
(2) 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 cost to the person of 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.
(3) (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 (3)(b), impose an administrative fine of up to $1,000 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 (3)(a) exceed $10,000 per day.
(4) The division may sue in a court of competent jurisdiction to enforce an order under Subsection (3).
(5) In a suit brought under Subsection (3), 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.
(6) 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.

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13-28-1. Title.This chapter shall be known as the "Prize Notices Regulation Act." 13-28-1. Title.This chapter shall be known as the "Prize Notices Regulation Act."

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13-28-2. Definitions. For the purpose of this part:

(1) "Division" means the Division of Consumer Protection in the Department of Commerce.

(2) "Prize" means a gift, award, or other item or service of value.

(3) (a) "Prize notice" means a notice given to an individual in this state that satisfies all of the following:

(i) is or contains a representation that the individual has been selected or may be eligible to receive a prize; and

(ii) conditions receipt of a prize on a payment or donation from the individual or requires or invites the individual to make a contact to learn how to receive the prize or to obtain other information related to the notice.

(b) "Prize notice" does not include:

(i) a notice given at the request of the individual; or

(ii) a notice informing the individual that he or she has been awarded a prize as a result of his actual prior entry in a game, drawing, sweepstakes, or other contest if the individual is awarded the prize stated in the notice.

(4) "Solicitor" means a person who represents to an individual that the individual has been selected or may be eligible to receive a prize.

(5) "Sponsor" means a person on whose behalf a solicitor gives a prize notice.

(6) "Verifiable retail value" of a prize means:

(a) a price at which the solicitor or sponsor can demonstrate that a substantial number of the prizes have been sold by a person other than the solicitor or sponsor in the trade area in which the prize notice is given; or

(b) if the solicitor or sponsor is unable to satisfy Subsection (a), no more than 1.5 times the amount the solicitor or sponsor paid for the prize.
13-28-2. Definitions.For the purpose of this part:
(1) "Division" means the Division of Consumer Protection in the Department of Commerce.
(2) "Prize" means a gift, award, or other item or service of value.
(3) (a) "Prize notice" means a notice given to an individual in this state that satisfies all of the following:
(i) is or contains a representation that the individual has been selected or may be eligible to receive a prize; and
(ii) conditions receipt of a prize on a payment or donation from the individual or requires or invites the individual to make a contact to learn how to receive the prize or to obtain other information related to the notice.
(b) "Prize notice" does not include:
(i) a notice given at the request of the individual; or
(ii) a notice informing the individual that he or she has been awarded a prize as a result of his actual prior entry in a game, drawing, sweepstakes, or other contest if the individual is awarded the prize stated in the notice.
(4) "Solicitor" means a person who represents to an individual that the individual has been selected or may be eligible to receive a prize.
(5) "Sponsor" means a person on whose behalf a solicitor gives a prize notice.
(6) "Verifiable retail value" of a prize means:
(a) a price at which the solicitor or sponsor can demonstrate that a substantial number of the prizes have been sold by a person other than the solicitor or sponsor in the trade area in which the prize notice is given; or
(b) if the solicitor or sponsor is unable to satisfy Subsection (6)(a), no more than 1.5 times the amount the solicitor or sponsor paid for the prize.

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13-28-3. Notice requirement.If a solicitor represents to an individual that he has been selected or may be eligible to receive a prize, the solicitor may not request, and the solicitor or sponsor may not accept, a payment from the individual in any form before the individual receives a written prize notice that contains all of the information required under Subsection 13-28-4(1) presented in the manner required under Subsections 13-28-4(2) through (6). 13-28-3. Notice requirement.If a solicitor represents to an individual that he has been selected or may be eligible to receive a prize, the solicitor may not request, and the solicitor or sponsor may not accept, a payment from the individual in any form before the individual receives a written prize notice that contains all of the information required under Subsection 13-28-4(1) presented in the manner required under Subsections 13-28-4(2) through (6).

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13-28-4. Contents of notices.(1) A written prize notice shall contain all of the following information presented in the manner required under Subsections (2) through (6):
(a) the name and address of the solicitor and sponsor;
(b) the verifiable retail value of each prize the individual has been selected or may be eligible to receive;
(c) if the notice lists more than one prize that the individual has been selected or may be eligible to receive, a statement of the odds the individual has of receiving each prize;
(d) any requirement or invitation for the individual to view, hear, or attend a sales presentation in order to claim a prize, the approximate length of the sales presentation and a description of the property or service that is the subject of the sales presentation;
(e) any requirement that the individual pay shipping or handling fees or any other charges to obtain or use a prize;
(f) if receipt of the prize is subject to a restriction, a statement that a restriction applies, a description of the restriction, and a statement containing the location in the notice where the restriction is described; and
(g) any limitations on eligibility.
(2) (a) The verifiable retail value and the statement of odds required in a written prize notice under Subsections (1)(b) and (c) shall be stated in immediate proximity to each listing of the prize in each place the prize appears on the written prize notice and shall be in the same size and boldness of type as the prize.
(b) The statement of odds shall include, for each prize, the total number of prizes to be given away and the total number of written prize notices to be delivered. The number of prizes and written prize notices shall be stated in Arabic numerals. The statement of odds shall be in the following form: "...(number of prizes) out of... written prize notices".
(c) The verifiable retail value shall be in the following form: "verifiable retail value: $...".
(3) If an individual is required to pay shipping or handling fees or any other charges to obtain or use a prize, the following statement shall appear in immediate proximity to each listing of the prize in each place the prize appears in the written prize notice and shall be in not less than 10-point boldface type: "YOU MUST PAY $.... IN ORDER TO RECEIVE OR USE THIS ITEM."
(4) The information required in a written prize notice under Subsection (1)(d) shall be on the first page of the written prize notice in not less than 10-point boldface type. The information required under Subsections (1)(f) and (g) shall be in not less than 10-point boldface type.
(5) If a written prize notice is given by a solicitor on behalf of a sponsor, the name of the sponsor shall be more prominently and conspicuously displayed than the name of the solicitor.
(6) A solicitor or sponsor may not do any of the following:
(a) place on an envelope containing a written prize notice any representation that the person to whom the envelope is addressed has been selected or may be eligible to receive a prize;
(b) deliver a written prize notice that contains language, or is designed in a manner that would lead a reasonable person to believe that it originates from a government agency, public utility, insurance company, consumer reporting agency, debt collector, accounting or law firm unless the written prize notice originates from that source; or
(c) represent directly or by implication that the number of individuals eligible for the prize is limited or that an individual has been separately selected to receive a particular prize unless the

representation is true.
13-28-4. Contents of notices.(1) A written prize notice shall contain all of the following information presented in the manner required under Subsections (2) through (6):
(a) the name and address of the solicitor and sponsor;
(b) the verifiable retail value of each prize the individual has been selected or may be eligible to receive;
(c) if the notice lists more than one prize that the individual has been selected or may be eligible to receive, a statement of the odds the individual has of receiving each prize;
(d) any requirement or invitation for the individual to view, hear, or attend a sales presentation in order to claim a prize, the approximate length of the sales presentation and a description of the property or service that is the subject of the sales presentation;
(e) any requirement that the individual pay shipping or handling fees or any other charges to obtain or use a prize;
(f) if receipt of the prize is subject to a restriction, a statement that a restriction applies, a description of the restriction, and a statement containing the location in the notice where the restriction is described; and
(g) any limitations on eligibility.
(2) (a) The verifiable retail value and the statement of odds required in a written prize notice under Subsections (1)(b) and (c) shall be stated in immediate proximity to each listing of the prize in each place the prize appears on the written prize notice and shall be in the same size and boldness of type as the prize.
(b) The statement of odds shall include, for each prize, the total number of prizes to be given away and the total number of written prize notices to be delivered. The number of prizes and written prize notices shall be stated in Arabic numerals. The statement of odds shall be in the following form: "...(number of prizes) out of... written prize notices".
(c) The verifiable retail value shall be in the following form: "verifiable retail value: $...".
(3) If an individual is required to pay shipping or handling fees or any other charges to obtain or use a prize, the following statement shall appear in immediate proximity to each listing of the prize in each place the prize appears in the written prize notice and shall be in not less than 10-point boldface type: "YOU MUST PAY $.... IN ORDER TO RECEIVE OR USE THIS ITEM."
(4) The information required in a written prize notice under Subsection (1)(d) shall be on the first page of the written prize notice in not less than 10-point boldface type. The information required under Subsections (1)(f) and (g) shall be in not less than 10-point boldface type.
(5) If a written prize notice is given by a solicitor on behalf of a sponsor, the name of the sponsor shall be more prominently and conspicuously displayed than the name of the solicitor.
(6) A solicitor or sponsor may not do any of the following:
(a) place on an envelope containing a written prize notice any representation that the person to whom the envelope is addressed has been selected or may be eligible to receive a prize;
(b) deliver a written prize notice that contains language, or is designed in a manner that would lead a reasonable person to believe that it originates from a government agency, public utility, insurance company, consumer reporting agency, debt collector, accounting or law firm unless the written prize notice originates from that source; or
(c) represent directly or by implication that the number of individuals eligible for the prize is limited or that an individual has been separately selected to receive a particular prize unless the

representation is true.

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13-28-5. Sales presentations.If a prize notice requires or invites an individual to view, hear, or attend a sales presentation in order to claim a prize, the sales presentation may not begin until the solicitor does all of the following:
(1) informs the individual of the prize, if any, that has been selected to be received by or awarded to the individual; and
(2) if the individual has been awarded a prize, delivers to the individual the prize or the item selected by the individual under Section 13-28-6 if the prize is not available.
13-28-5. Sales presentations.If a prize notice requires or invites an individual to view, hear, or attend a sales presentation in order to claim a prize, the sales presentation may not begin until the solicitor does all of the following:
(1) informs the individual of the prize, if any, that has been selected to be received by or awarded to the individual; and
(2) if the individual has been awarded a prize, delivers to the individual the prize or the item selected by the individual under Section 13-28-6 if the prize is not available.

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13-28-6. Prize awards -- Options if unavailable.(1) A solicitor who represents to an individual in a written prize notice that the individual has been awarded a prize shall provide the prize to the individual unless the prize is not available. If the prize is not available, the solicitor shall provide the individual with any one of the following items selected by the individual:
(a) any other prize listed in the written prize notice that is available and that is of equal or greater value;
(b) the verifiable retail value of the prize in the form of cash, a money order, or a certified check; or
(c) a voucher, certificate, or other evidence of obligation stating that the prize will be shipped to the individual within 30 days at no cost to the individual.
(2) If a voucher, certificate, or other evidence of obligation delivered under Subsection (1)(c) is not honored within 30 days, the solicitor shall deliver to the individual the verifiable retail value of the prize in the form of cash, a money order, or a certified check. The sponsor shall make the payment to the individual if the solicitor fails to do so.
13-28-6. Prize awards -- Options if unavailable.(1) A solicitor who represents to an individual in a written prize notice that the individual has been awarded a prize shall provide the prize to the individual unless the prize is not available. If the prize is not available, the solicitor shall provide the individual with any one of the following items selected by the individual:
(a) any other prize listed in the written prize notice that is available and that is of equal or greater value;
(b) the verifiable retail value of the prize in the form of cash, a money order, or a certified check; or
(c) a voucher, certificate, or other evidence of obligation stating that the prize will be shipped to the individual within 30 days at no cost to the individual.
(2) If a voucher, certificate, or other evidence of obligation delivered under Subsection (1)(c) is not honored within 30 days, the solicitor shall deliver to the individual the verifiable retail value of the prize in the form of cash, a money order, or a certified check. The sponsor shall make the payment to the individual if the solicitor fails to do so.

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13-28-7. Penalties -- Administrative and criminal.(1) Any person who violates this chapter shall be subject to:
(a) a cease and desist order; and
(b) an administrative fine of not less than $100 or more than $5,000 for each separate violation.
(2) All administrative fines shall be deposited in the Consumer Protection Education and Training Fund created in Section 13-2-8.
(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 he is in violation of this chapter.
13-28-7. Penalties -- Administrative and criminal.(1) Any person who violates this chapter shall be subject to:
(a) a cease and desist order; and
(b) an administrative fine of not less than $100 or more than $5,000 for each separate violation.
(2) All administrative fines shall be deposited in the Consumer Protection Education and Training Fund created in Section 13-2-8.
(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 he is in violation of this chapter.

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13-28-8. Enforcement.(1) The division shall investigate and assess administrative fines for violations of this chapter.
(2) Upon referral from the division, the attorney general or any district or county attorney may:
(a) bring an action for temporary or permanent injunctive or other relief in any court of competent jurisdiction for any violation of this part. The court may, upon entry of final judgment, award restitution when appropriate to any person suffering loss because of a violation of this part if proof of loss is submitted to the satisfaction of the court;
(b) bring an action in any court of competent jurisdiction for the collection of penalties authorized under Subsection 13-28-7(1); or
(c) bring an action under Subsection 13-28-7(3).
13-28-8. Enforcement.(1) The division shall investigate and assess administrative fines for violations of this chapter.
(2) Upon referral from the division, the attorney general or any district or county attorney may:
(a) bring an action for temporary or permanent injunctive or other relief in any court of competent jurisdiction for any violation of this part. The court may, upon entry of final judgment, award restitution when appropriate to any person suffering loss because of a violation of this part if proof of loss is submitted to the satisfaction of the court;
(b) bring an action in any court of competent jurisdiction for the collection of penalties authorized under Subsection 13-28-7(1); or
(c) bring an action under Subsection 13-28-7(3).

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13-28-9. Private action.In addition to any other remedies, a person suffering pecuniary loss because of a violation by another person of this chapter may bring an action in any court of competent jurisdiction and may recover:
(1) the greater of $500 or twice the amount of the pecuniary loss; and
(2) court costs and reasonable attorney's fees as determined by the court.
13-28-9. Private action.In addition to any other remedies, a person suffering pecuniary loss because of a violation by another person of this chapter may bring an action in any court of competent jurisdiction and may recover:
(1) the greater of $500 or twice the amount of the pecuniary loss; and
(2) court costs and reasonable attorney's fees as determined by the court.

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13-34-101. Title.This chapter is known as the "Utah Postsecondary Proprietary School Act." 13-34-101. Title.This chapter is known as the "Utah Postsecondary Proprietary School Act."

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13-34-102. Legislative intent.It is the policy of this state to do the following:
(1) encourage private postsecondary education and training;
(2) assure and protect the integrity of certificates and diplomas conferred by proprietary postsecondary educational institutions;
(3) protect students and potential students from deceptively promoted, inadequately staffed, and unqualified proprietary institutions and programs; and
(4) avoid unnecessary interference by the division with the internal academic policies and management practices of postsecondary educational institutions, but to facilitate disclosure of those matters to students and the public.
13-34-102. Legislative intent.It is the policy of this state to do the following:
(1) encourage private postsecondary education and training;
(2) assure and protect the integrity of certificates and diplomas conferred by proprietary postsecondary educational institutions;
(3) protect students and potential students from deceptively promoted, inadequately staffed, and unqualified proprietary institutions and programs; and
(4) avoid unnecessary interference by the division with the internal academic policies and management practices of postsecondary educational institutions, but to facilitate disclosure of those matters to students and the public.

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13-34-103. Definitions.As used in this chapter:
(1) "Agent" means any person who owns an interest in or is employed by a proprietary school and who:
(a) enrolls or attempts to enroll a resident of this state in a proprietary school;
(b) offers to award educational credentials for remuneration on behalf of a proprietary school; or
(c) holds himself out to residents of this state as representing a proprietary school for any purpose.
(2) "Certificate of registration" means approval of the division to operate a school or institution in compliance with this chapter and rules adopted under this chapter. The registration is not an endorsement of the school or institution by either the division or the state of Utah.
(3) "Division" means the Division of Consumer Protection.
(4) "Educational credentials" means degrees, diplomas, certificates, transcripts, reports, documents, or letters of designation, marks, appellations, series of letters, numbers, or words which signify or appear to signify enrollment, attendance, progress, or satisfactory completion of the requirements or prerequisites for any educational program.
(5) "Institution" means an individual, corporation, partnership, association, cooperative, or other legal entity.
(6) "Offer" means to advertise, publicize, solicit, or encourage any person directly or indirectly.
(7) "Operate" in this state means to have a significant presence within the state, to conduct significant educational activities within the state, or to offer postsecondary instruction leading to a postsecondary degree or certificate to any number of Utah residents assembled at a receiving site in Utah from a location outside the state by correspondence or any telecommunications or electronic media technology.
(8) "Ownership" means the controlling interest in a school, institution, or college. If the school, institution, or college is owned or controlled by other than a natural person, "ownership" refers to the controlling interest in the legal entity which controls the school, institution, or college.
(9) "Postsecondary education" means education or educational services offered primarily to persons who have completed or terminated their secondary or high school education or who are beyond the age of compulsory school attendance.
(10) "Proprietary school" means any private institution, including business, modeling, paramedical, tax preparation, trade and technical schools, which offers postsecondary education in consideration of the payment of tuition or fees for the attainment of educational, professional, or vocational objectives, other than those schools exempted under this chapter.
(11) "Rules" means those rules adopted by the division under the Utah Administrative Rulemaking Act necessary to enforce and administer this chapter.
(12) "Utah school or institution" means a postsecondary educational school or institution whose headquarters or primary operations are in Utah.
13-34-103. Definitions.As used in this chapter:
(1) "Agent" means any person who owns an interest in or is employed by a proprietary school and who:
(a) enrolls or attempts to enroll a resident of this state in a proprietary school;
(b) offers to award educational credentials for remuneration on behalf of a proprietary school; or
(c) holds himself out to residents of this state as representing a proprietary school for any purpose.
(2) "Certificate of registration" means approval of the division to operate a school or institution in compliance with this chapter and rules adopted under this chapter. The registration is not an endorsement of the school or institution by either the division or the state of Utah.
(3) "Division" means the Division of Consumer Protection.
(4) "Educational credentials" means degrees, diplomas, certificates, transcripts, reports, documents, or letters of designation, marks, appellations, series of letters, numbers, or words which signify or appear to signify enrollment, attendance, progress, or satisfactory completion of the requirements or prerequisites for any educational program.
(5) "Institution" means an individual, corporation, partnership, association, cooperative, or other legal entity.
(6) "Offer" means to advertise, publicize, solicit, or encourage any person directly or indirectly.
(7) "Operate" in this state means to have a significant presence within the state, to conduct significant educational activities within the state, or to offer postsecondary instruction leading to a postsecondary degree or certificate to any number of Utah residents assembled at a receiving site in Utah from a location outside the state by correspondence or any telecommunications or electronic media technology.
(8) "Ownership" means the controlling interest in a school, institution, or college. If the school, institution, or college is owned or controlled by other than a natural person, "ownership" refers to the controlling interest in the legal entity which controls the school, institution, or college.
(9) "Postsecondary education" means education or educational services offered primarily to persons who have completed or terminated their secondary or high school education or who are beyond the age of compulsory school attendance.
(10) "Proprietary school" means any private institution, including business, modeling, paramedical, tax preparation, trade and technical schools, which offers postsecondary education in consideration of the payment of tuition or fees for the attainment of educational, professional, or vocational objectives, other than those schools exempted under this chapter.
(11) "Rules" means those rules adopted by the division under the Utah Administrative Rulemaking Act necessary to enforce and administer this chapter.
(12) "Utah school or institution" means a postsecondary educational school or institution whose headquarters or primary operations are in Utah.

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13-34-104. Prohibited acts -- Exceptions -- Responsibilities of proprietary schools. (1) Except as provided in this chapter, a proprietary school may not offer, sell, or award a degree or any other type of educational credential unless the student has enrolled in and successfully completed a prescribed program of study as outlined in the proprietary school's catalogue.

(2) The prohibition described in Subsection (1) does not apply to:

(a) honorary credentials clearly designated as such on the front side of a diploma; or

(b) certificates and awards by a proprietary school that offers other educational credentials requiring enrollment in and successful completion of a prescribed program of study in compliance with the requirements of this chapter.

(3) A proprietary school must provide bona fide instruction through student-faculty interaction.

(4) A proprietary school may not enroll a student in a program unless the proprietary school has made a good-faith determination that the student has the ability to benefit from the program.

(5) A proprietary school may not make or cause to be made any oral, written, or visual statement or representation that an institution described in Subsection 13-34-107(2)(a)(ii) knows or should know to be:

(a) false;

(b) deceptive;

(c) substantially inaccurate; or

(d) misleading.

(6) The division shall establish standards and criteria by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the following:

(a) the awarding of educational credentials;

(b) bona fide instruction through student-faculty interaction; and

(c) determination of the ability of a student to benefit from a program.
13-34-104. Prohibited acts -- Exceptions -- Responsibilities of proprietary schools. (1) Except as provided in this chapter, a proprietary school may not offer, sell, or award a degree or any other type of educational credential unless the student has enrolled in and successfully completed a prescribed program of study as outlined in the proprietary school's catalogue.
(2) The prohibition described in Subsection (1) does not apply to:
(a) honorary credentials clearly designated as such on the front side of a diploma; or
(b) certificates and awards by a proprietary school that offers other educational credentials requiring enrollment in and successful completion of a prescribed program of study in compliance with the requirements of this chapter.
(3) A proprietary school shall provide bona fide instruction through student-faculty interaction.
(4) A proprietary school may not enroll a student in a program unless the proprietary school has made a good-faith determination that the student has the ability to benefit from the program.
(5) A proprietary school may not make or cause to be made any oral, written, or visual statement or representation that an institution described in Subsection 13-34-107(2)(a)(ii) knows or should know to be:
(a) false;
(b) deceptive;
(c) substantially inaccurate; or
(d) misleading.
(6) The division shall establish standards and criteria by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the following:
(a) the awarding of educational credentials;
(b) bona fide instruction through student-faculty interaction; and
(c) determination of the ability of a student to benefit from a program.

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13-34-105. Exempted institutions.(1) This chapter does not apply to the following institutions:

(a) a Utah institution directly supported, to a substantial degree, with funds provided by:

(i) the state;

(ii) a local school district; or

(iii) other Utah governmental subdivision;

(b) an institution that offers instruction exclusively at or below the 12th grade level;

(c) a lawful enterprise that offers only professional review programs, such as C.P.A. and bar examination review and preparation courses;

(d) a private, postsecondary educational institution that is owned, controlled, operated, or maintained by a bona fide church or religious denomination, which is exempted from property taxation under the laws of this state;

(e) subject to Subsection (3), a school or institution that is accredited by a regional or national accrediting agency recognized by the United States Department of Education;

(f) subject to Subsection (4), a business organization, trade or professional association, fraternal society, or labor union that:

(i) sponsors or conducts courses of instruction or study predominantly for bona fide employees or members; and

(ii) does not, in advertising, describe itself as a school;

(g) an institution that exclusively offers general education courses or instruction solely remedial, avocational, nonvocational, or recreational in nature, that does not:

(i) advertise occupation objectives; or

(ii) grant educational credentials;

(h) an institution that offers only workshops or seminars:

(i) lasting no longer than three calendar days; and

(ii) for which academic credit is not awarded;

(i) an institution that offers programs:

(i) in barbering, cosmetology, real estate, or insurance; and

(ii) that are regulated and approved by a state or federal governmental agency;

(j) an education provider certified by the Division of Real Estate under Section 61-2c-103;

(k) an institution that offers aviation training if the institution:

(i) (A) is approved under Part 141, Federal Aviation Regulations, 14 C.F.R. Chapter 141; or

(B) provides aviation training under Part 61, Federal Aviation Regulations, 14 C.F.R. Chapter 61; and

(ii) exclusively offers aviation training that a student fully receives within 24 hours after the student pays any tuition, fee, or other charge for the aviation training; and

(l) an institution that provides emergency medical services training if all of the institution's instructors, course coordinators, and courses are approved by the Department of Health.

(2) (a) If available evidence suggests that an exempt institution under this section is not in compliance with the standards of registration under this chapter and applicable division rules, the division shall contact the institution and, if appropriate, the state or federal government agency to request corrective action.

(b) Subsection (2)(a) does not apply to an institution exempted under Subsection (1)(e).

(3) An institution, branch, extension, or facility operating within the state that is affiliated with an institution operating in another state must be separately approved by the affiliate's regional or national accrediting agency to qualify for the exemption described in Subsection (1)(e).

(4) For purposes of Subsection (1)(f), a business organization, trade or professional association, fraternal society, or labor union is considered to be conducting the course predominantly for bona fide employees or members if it hires a majority of the persons who:

(a) successfully complete its course of instruction or study with a reasonable degree of proficiency; and

(b) apply for employment with that same entity.
13-34-105. Exempted institutions.(1) This chapter does not apply to the following institutions:
(a) a Utah institution directly supported, to a substantial degree, with funds provided by:
(i) the state;
(ii) a local school district; or
(iii) other Utah governmental subdivision;
(b) an institution that offers instruction exclusively at or below the 12th grade level;
(c) a lawful enterprise that offers only professional review programs, such as C.P.A. and bar examination review and preparation courses;
(d) a private, postsecondary educational institution that is owned, controlled, operated, or maintained by a bona fide church or religious denomination, which is exempted from property taxation under the laws of this state;
(e) subject to Subsection (3), a school or institution that is accredited by a regional or national accrediting agency recognized by the United States Department of Education;
(f) subject to Subsection (4), a business organization, trade or professional association, fraternal society, or labor union that:
(i) sponsors or conducts courses of instruction or study predominantly for bona fide employees or members; and
(ii) does not, in advertising, describe itself as a school;
(g) an institution that exclusively offers general education courses or instruction solely remedial, avocational, nonvocational, or recreational in nature, that does not:
(i) advertise occupation objectives; or
(ii) grant educational credentials;
(h) an institution that offers only workshops or seminars:
(i) lasting no longer than three calendar days; and
(ii) for which academic credit is not awarded;
(i) an institution that offers programs:
(i) in barbering, cosmetology, real estate, or insurance; and
(ii) that are regulated and approved by a state or federal governmental agency;
(j) an education provider certified by the Division of Real Estate under Section 61-2c-204.1;
(k) an institution that offers aviation training if the institution:
(i) (A) is approved under Federal Aviation Regulations, 14 C.F.R. Part 141; or
(B) provides aviation training under Federal Aviation Regulations, 14 C.F.R. Part 61; and
(ii) exclusively offers aviation training that a student fully receives within 24 hours after the student pays any tuition, fee, or other charge for the aviation training; and
(l) an institution that provides emergency medical services training if all of the institution's instructors, course coordinators, and courses are approved by the Department of Health.
(2) (a) If available evidence suggests that an exempt institution under this section is not in compliance with the standards of registration under this chapter and applicable division rules, the division shall contact the institution and, if appropriate, the state or federal government agency to request corrective action.
(b) Subsection (2)(a) does not apply to an institution exempted under Subsection (1)(e).

(3) An institution, branch, extension, or facility operating within the state that is affiliated with an institution operating in another state shall be separately approved by the affiliate's regional or national accrediting agency to qualify for the exemption described in Subsection (1)(e).
(4) For purposes of Subsection (1)(f), a business organization, trade or professional association, fraternal society, or labor union is considered to be conducting the course predominantly for bona fide employees or members if it hires a majority of the persons who:
(a) successfully complete its course of instruction or study with a reasonable degree of proficiency; and
(b) apply for employment with that same entity.

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13-34-106. Responsibilities of division.The division is responsible for the administration of this chapter, and shall do the following:
(1) prescribe the contents of the registration statements required by this chapter relating to the quality of education and ethical and business practices;
(2) issue certification of registration upon receipt and approval of the registration statement required under Section 13-34-107;
(3) receive, investigate, and make available for public inspection the registration statements filed by proprietary schools operating or intending to operate in the state;
(4) maintain and publicize a list of proprietary schools for which a registration statement is on file with the division;
(5) investigate and audit, on the division's own initiative or in response to a complaint filed with the division, any institution subject to, or reasonably believed by the division to be subject to, this chapter;
(6) negotiate and enter into interstate reciprocity agreements with other states, if in the judgment of the division, the agreements are or will help to effectuate the purposes of this chapter; and
(7) consent to the use of educational terms in business names in accordance with Section 13-34-114.
13-34-106. Responsibilities of division.The division is responsible for the administration of this chapter, and shall do the following:
(1) prescribe the contents of the registration statements required by this chapter relating to the quality of education and ethical and business practices;
(2) issue certification of registration upon receipt and approval of the registration statement required under Section 13-34-107;
(3) receive, investigate, and make available for public inspection the registration statements filed by proprietary schools operating or intending to operate in the state;
(4) maintain and publicize a list of proprietary schools for which a registration statement is on file with the division;
(5) investigate and audit, on the division's own initiative or in response to a complaint filed with the division, any institution subject to, or reasonably believed by the division to be subject to, this chapter;
(6) negotiate and enter into interstate reciprocity agreements with other states, if in the judgment of the division, the agreements are or will help to effectuate the purposes of this chapter; and
(7) consent to the use of educational terms in business names in accordance with Section 13-34-114.

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13-34-107. Advertising, recruiting, or operating a proprietary school -- Required registration statement or exemption -- Certificate of registration -- Registration does not constitute endorsement.(1) (a) Unless an institution complies with Subsection (1)(b), the institution may not do any of the following in this state:
(i) advertise a proprietary school;
(ii) recruit students for a proprietary school; or
(iii) operate a proprietary school.
(b) An institution may not engage in an activity described in Subsection (1)(a) unless the institution:
(i) (A) files with the division a registration statement relating to the proprietary school that is in compliance with:
(I) applicable rules made by the division; and
(II) the requirements set forth in this chapter; and
(B) obtains a certificate of registration; or
(ii) establishes an exemption with the division.
(2) (a) The registration statement or exemption described in Subsection (1) shall be:
(i) verified by the oath or affirmation of the owner or a responsible officer of the proprietary school filing the registration statement or exemption; and
(ii) include a certification as to whether any of the following has violated laws, federal regulations, or state rules as determined in a criminal, civil, or administrative proceeding:
(A) the proprietary school; or
(B) any of the following with respect to the proprietary school:
(I) an owner;
(II) an officer;
(III) a director;
(IV) an administrator;
(V) a faculty member;
(VI) a staff member; or
(VII) an agent.
(b) The proprietary school shall:
(i) make available, upon request, a copy of the registration statement, showing the date upon which it was filed; and
(ii) display the certificate of registration obtained from the division in a conspicuous place on the proprietary school's premises.
(3) (a) A registration statement and the accompanying certificate of registration are not transferable.
(b) In the event of a change in ownership or in the governing body of the proprietary school, the new owner or governing body, within 30 days after the change, shall file a new registration statement.
(4) Except as provided in Subsection (3)(b), a registration statement or a renewal statement and the accompanying certificate of registration are effective for a period of two years after the date of filing and issuance.
(5) (a) The division shall establish a graduated fee structure for the filing of registration statements by various classifications of institutions pursuant to Section 63J-1-504.

(b) Fees are not refundable.
(c) Fees shall be deposited in the Commerce Service Account created by Section 13-1-2.
(6) (a) Each proprietary school shall:
(i) demonstrate fiscal responsibility at the time the proprietary school files its registration statement as prescribed by rules of the division; and
(ii) provide evidence to the division that the proprietary school:
(A) is financially sound; and
(B) can reasonably fulfill commitments to and obligations the proprietary school has incurred with students and creditors.
(b) A proprietary school applying for an initial certificate of registration to operate shall prepare and submit financial statements and supporting documentation as requested by the division.
(c) A proprietary school applying for renewal of a certificate of registration to operate or renewal under new ownership shall provide audited financial statements.
(d) The division may require evidence of financial status at other times when it is in the best interest of students to require such information.
(7) (a) A proprietary school applying for an initial certificate of registration or seeking renewal shall provide in a form approved by the division:
(i) a surety bond;
(ii) a certificate of deposit; or
(iii) an irrevocable letter of credit.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division may make rules providing for:
(i) the amount of the bond, certificate, or letter of credit required under Subsection (7)(a), not to exceed in amount the anticipated tuition and fees to be received by the proprietary school during a school year;
(ii) the execution of the bond, certificate, or letter of credit;
(iii) cancellation of the bond, certificate, or letter of credit during or at the end of the registration term; and
(iv) any other matters related to providing the bond, certificate, or letter of credit required under Subsection (7)(a).
(c) The bond, certificate, or letter of credit shall be used as a protection against loss of advanced tuition, book fees, supply fees, or equipment fees:
(i) collected by the proprietary school from a student or a student's parent, guardian, or sponsor prior to the completion of the program or courses for which it was collected; or
(ii) for which the student is liable.
(8) (a) Except as provided in Section 13-34-113, the division may not refuse acceptance of a registration statement that is:
(i) tendered for filing and, based on a preliminary review, appears to be in compliance with Subsections (1), (2), and (6); and
(ii) accompanied by:
(A) the required fee; and
(B) one of the following required by Subsection (7):
(I) surety bond;
(II) certificate of deposit; or

(III) irrevocable letter of credit.
(b) A certificate of registration is effective upon the date of issuance.
(c) The responsibility of compliance is upon the proprietary school and not upon the division.
(d) (i) If it appears to the division that a registration statement on file may not be in compliance with this chapter, the division may advise the proprietary school as to the apparent deficiencies.
(ii) After a proprietary school has been notified of a deficiency under Subsection (8)(d)(i), a new or amended statement may be presented for filing by the proprietary school, accompanied by:
(A) the required fee; and
(B) one of the following required by Subsection (7):
(I) surety bond;
(II) certificate of deposit; or
(III) irrevocable letter of credit.
(9) The following does not constitute and may not be represented by any person to constitute, an endorsement or approval of the proprietary school by either the division or the state:
(a) an acceptance of:
(i) a registration statement;
(ii) a renewal statement; or
(iii) an amended registration statement; and
(b) issuance of a certificate of registration.
13-34-107. Advertising, recruiting, or operating a proprietary school -- Required registration statement or exemption -- Certificate of registration -- Registration does not constitute endorsement.(1) (a) Unless an institution complies with Subsection (1)(b), the institution may not do any of the following in this state:
(i) advertise a proprietary school;
(ii) recruit students for a proprietary school; or
(iii) operate a proprietary school.
(b) An institution may not engage in an activity described in Subsection (1)(a) unless the institution:
(i) (A) files with the division a registration statement relating to the proprietary school that is in compliance with:
(I) applicable rules made by the division; and
(II) the requirements set forth in this chapter; and
(B) obtains a certificate of registration; or
(ii) establishes an exemption with the division.
(2) (a) The registration statement or exemption described in Subsection (1) shall be:
(i) verified by the oath or affirmation of the owner or a responsible officer of the proprietary school filing the registration statement or exemption; and
(ii) include a certification as to whether any of the following has violated laws, federal regulations, or state rules as determined in a criminal, civil, or administrative proceeding:
(A) the proprietary school; or
(B) any of the following with respect to the proprietary school:
(I) an owner;
(II) an officer;
(III) a director;
(IV) an administrator;
(V) a faculty member;
(VI) a staff member; or
(VII) an agent.
(b) The proprietary school shall:
(i) make available, upon request, a copy of the registration statement, showing the date upon which it was filed; and
(ii) display the certificate of registration obtained from the division in a conspicuous place on the proprietary school's premises.
(3) (a) A registration statement and the accompanying certificate of registration are not transferable.
(b) In the event of a change in ownership or in the governing body of the proprietary school, the new owner or governing body, within 30 days after the change, shall file a new registration statement.
(4) Except as provided in Subsection (3)(b), a registration statement or a renewal statement and the accompanying certificate of registration are effective for a period of two years after the date of filing and issuance.
(5) (a) The division shall establish a graduated fee structure for the filing of registration statements by various classifications of institutions pursuant to Section 63J-1-504.

(b) Fees are not refundable.
(c) Fees shall be deposited in the Commerce Service Account created by Section 13-1-2.
(6) (a) Each proprietary school shall:
(i) demonstrate fiscal responsibility at the time the proprietary school files its registration statement as prescribed by rules of the division; and
(ii) provide evidence to the division that the proprietary school:
(A) is financially sound; and
(B) can reasonably fulfill commitments to and obligations the proprietary school has incurred with students and creditors.
(b) A proprietary school applying for an initial certificate of registration to operate shall prepare and submit financial statements and supporting documentation as requested by the division.
(c) A proprietary school applying for renewal of a certificate of registration to operate or renewal under new ownership shall provide audited financial statements.
(d) The division may require evidence of financial status at other times when it is in the best interest of students to require such information.
(7) (a) A proprietary school applying for an initial certificate of registration or seeking renewal shall provide in a form approved by the division:
(i) a surety bond;
(ii) a certificate of deposit; or
(iii) an irrevocable letter of credit.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division may make rules providing for:
(i) the amount of the bond, certificate, or letter of credit required under Subsection (7)(a), not to exceed in amount the anticipated tuition and fees to be received by the proprietary school during a school year;
(ii) the execution of the bond, certificate, or letter of credit;
(iii) cancellation of the bond, certificate, or letter of credit during or at the end of the registration term; and
(iv) any other matters related to providing the bond, certificate, or letter of credit required under Subsection (7)(a).
(c) The bond, certificate, or letter of credit shall be used as a protection against loss of advanced tuition, book fees, supply fees, or equipment fees:
(i) collected by the proprietary school from a student or a student's parent, guardian, or sponsor prior to the completion of the program or courses for which it was collected; or
(ii) for which the student is liable.
(8) (a) Except as provided in Section 13-34-113, the division may not refuse acceptance of a registration statement that is:
(i) tendered for filing and, based on a preliminary review, appears to be in compliance with Subsections (1), (2), and (6); and
(ii) accompanied by:
(A) the required fee; and
(B) one of the following required by Subsection (7):
(I) surety bond;
(II) certificate of deposit; or

(III) irrevocable letter of credit.
(b) A certificate of registration is effective upon the date of issuance.
(c) The responsibility of compliance is upon the proprietary school and not upon the division.
(d) (i) If it appears to the division that a registration statement on file may not be in compliance with this chapter, the division may advise the proprietary school as to the apparent deficiencies.
(ii) After a proprietary school has been notified of a deficiency under Subsection (8)(d)(i), a new or amended statement may be presented for filing by the proprietary school, accompanied by:
(A) the required fee; and
(B) one of the following required by Subsection (7):
(I) surety bond;
(II) certificate of deposit; or
(III) irrevocable letter of credit.
(9) The following does not constitute and may not be represented by any person to constitute, an endorsement or approval of the proprietary school by either the division or the state:
(a) an acceptance of:
(i) a registration statement;
(ii) a renewal statement; or
(iii) an amended registration statement; and
(b) issuance of a certificate of registration.

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13-34-108. Information required to be available -- Documents to be fair and accurate -- Fair and ethical practices.(1) It is a violation of this chapter for any institution or proprietary school, which is required to file a registration statement under this chapter, to offer postsecondary education in this state unless:
(a) the institution or proprietary school makes available:
(i) in writing;
(ii) to all applicants;
(iii) prior to:
(A) enrollment of the applicant; or
(B) the receipt of any tuition by the institution or proprietary school; and
(iv) information that includes the following:
(A) the proprietary school name, which shall be representative of the programs offered at the proprietary school;
(B) the address of the proprietary school;
(C) the location of the proprietary school;
(D) the facilities, faculty, training equipment, and instructional programs of the proprietary school;
(E) enrollment qualifications;
(F) accurate information regarding the relationship of the program of the institution or proprietary school to state licensure requirements for practicing a related occupation and profession in Utah;
(G) tuition, fees, and other charges and expenses;
(H) financial assistance, cancellation, and tuition refund policies, including the posting of:
(I) a surety bond;
(II) a certificate of credit; or
(III) an irrevocable letter of credit;
(I) length of programs;
(J) graduation requirements;
(K) subject to Subsection (2), for each of the immediately preceding three years:
(I) graduation rates; and
(II) employment rates; and
(L) awarding of appropriate educational credentials to indicate satisfactory course completions;
(b) all recruiting documents, advertising, solicitations, publicity releases, and other public statements regarding the proprietary school are fair and accurate;
(c) all agents or sales representatives of the proprietary school are required by the proprietary school to comply with ethical practices prescribed by the division; and
(d) the institution or proprietary school makes available to the division for inspection during normal business hours all records relevant to:
(i) the operation of the institution or proprietary school; and
(ii) the efforts of the institution or proprietary school to comply with this chapter.
(2) (a) Beginning on May 2, 2005 an institution or proprietary school shall collect and maintain the information necessary to comply with Subsection (1)(a)(iv)(K).

(b) Prior to May 2, 2008, if an institution or proprietary school has the information described in Subsection (1)(a)(iv)(K) for a time period of three years or less, the institution or proprietary school shall provide the information for the time period the institution or proprietary school has the information.
13-34-108. Information required to be available -- Documents to be fair and accurate -- Fair and ethical practices.(1) It is a violation of this chapter for any institution or proprietary school, which is required to file a registration statement under this chapter, to offer postsecondary education in this state unless:
(a) the institution or proprietary school makes available:
(i) in writing;
(ii) to all applicants;
(iii) prior to:
(A) enrollment of the applicant; or
(B) the receipt of any tuition by the institution or proprietary school; and
(iv) information that includes the following:
(A) the proprietary school name, which shall be representative of the programs offered at the proprietary school;
(B) the address of the proprietary school;
(C) the location of the proprietary school;
(D) the facilities, faculty, training equipment, and instructional programs of the proprietary school;
(E) enrollment qualifications;
(F) accurate information regarding the relationship of the program of the institution or proprietary school to state licensure requirements for practicing a related occupation and profession in Utah;
(G) tuition, fees, and other charges and expenses;
(H) financial assistance, cancellation, and tuition refund policies, including the posting of:
(I) a surety bond;
(II) a certificate of credit; or
(III) an irrevocable letter of credit;
(I) length of programs;
(J) graduation requirements;
(K) subject to Subsection (2), for each of the immediately preceding three years:
(I) graduation rates; and
(II) employment rates; and
(L) awarding of appropriate educational credentials to indicate satisfactory course completions;
(b) all recruiting documents, advertising, solicitations, publicity releases, and other public statements regarding the proprietary school are fair and accurate;
(c) all agents or sales representatives of the proprietary school are required by the proprietary school to comply with ethical practices prescribed by the division; and
(d) the institution or proprietary school makes available to the division for inspection during normal business hours all records relevant to:
(i) the operation of the institution or proprietary school; and
(ii) the efforts of the institution or proprietary school to comply with this chapter.
(2) (a) Beginning on May 2, 2005 an institution or proprietary school shall collect and maintain the information necessary to comply with Subsection (1)(a)(iv)(K).

(b) Prior to May 2, 2008, if an institution or proprietary school has the information described in Subsection (1)(a)(iv)(K) for a time period of three years or less, the institution or proprietary school shall provide the information for the time period the institution or proprietary school has the information.

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13-34-109. Discontinuance of operations -- Filing of transcripts.(1) If a proprietary school elects to discontinue its operations in this state, the proprietor or administrator of the school shall file with the division a copy of each student's grade transcript in either written or microfilm form, relating to all courses of instruction and all students enrolled in the school during the previous 10 years.
(2) The responsibility to file records under this section is enforceable by injunction issued by a court of competent jurisdiction in an action brought upon the request of the division or, on his own initiative, by the attorney general or by the county attorney of the county in which the proprietary school is or was operating.
(3) The division shall maintain for at least 10 years a file of all records received by it under this section.
13-34-109. Discontinuance of operations -- Filing of transcripts.(1) If a proprietary school elects to discontinue its operations in this state, the proprietor or administrator of the school shall file with the division a copy of each student's grade transcript in either written or microfilm form, relating to all courses of instruction and all students enrolled in the school during the previous 10 years.
(2) The responsibility to file records under this section is enforceable by injunction issued by a court of competent jurisdiction in an action brought upon the request of the division or, on his own initiative, by the attorney general or by the county attorney of the county in which the proprietary school is or was operating.
(3) The division shall maintain for at least 10 years a file of all records received by it under this section.

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13-34-110. Enforcement of contracts or agreements -- Rescission based on defective registration statement.(1) A proprietary school shall be unable to enforce in the courts of this state any contract or agreement relating to postsecondary education services in this state unless, at the time the contract or agreement was entered into, an effective registration statement was on file with the division and made accessible to every applicant at the time of admission to the school.
(2) It is a violation of this chapter if a proprietary school or its agent:
(a) fails to file an effective registration statement;
(b) willfully omits from a registration statement provided under Section 13-34-107 any material statement of fact required by this chapter and applicable regulations; or
(c) includes in a registration statement any material statement of fact that was known, or should have been known, to the proprietary school to be false, deceptive, inaccurate, or misleading.
(3) A student who enrolled in a proprietary school, in reliance upon the school's registration statement, may rescind the contract or agreement of enrollment and obtain a refund from the school of all tuition, fees, and other charges paid to the school if the school or its agent committed a violation under Subsection (2).
(4) A violation of this chapter is also a violation of Section 13-11-4.
13-34-110. Enforcement of contracts or agreements -- Rescission based on defective registration statement.(1) A proprietary school shall be unable to enforce in the courts of this state any contract or agreement relating to postsecondary education services in this state unless, at the time the contract or agreement was entered into, an effective registration statement was on file with the division and made accessible to every applicant at the time of admission to the school.
(2) It is a violation of this chapter if a proprietary school or its agent:
(a) fails to file an effective registration statement;
(b) willfully omits from a registration statement provided under Section 13-34-107 any material statement of fact required by this chapter and applicable regulations; or
(c) includes in a registration statement any material statement of fact that was known, or should have been known, to the proprietary school to be false, deceptive, inaccurate, or misleading.
(3) A student who enrolled in a proprietary school, in reliance upon the school's registration statement, may rescind the contract or agreement of enrollment and obtain a refund from the school of all tuition, fees, and other charges paid to the school if the school or its agent committed a violation under Subsection (2).
(4) A violation of this chapter is also a violation of Section 13-11-4.

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13-34-111. Referral of suspected violations -- Penalty. (1) The division may report any information concerning a possible violation of this chapter or of rules made under this chapter to the attorney general, the county attorney, or district attorney of any county or prosecution district in which the activity is occurring or has occurred.
(2) The attorney described in Subsection (1) shall investigate the complaint and immediately prosecute or bring suit to enjoin an act determined to be a violation of the chapter or rules.
(3) (a) In addition to other penalties and remedies in this chapter, and in addition to its other enforcement powers under Section 13-2-6, the division director may:
(i) issue a cease and desist order; and
(ii) impose an administrative fine of up to:
(A) $100 per day that a proprietary school operates without an effective certificate of registration if the violation is not an intentional violation;
(B) $1,000 for each violation of this chapter that is not:
(I) described in Subsection (3)(a)(ii)(A); or
(II) an intentional violation; or
(C) $5,000 for each intentional violation of this chapter.
(b) All money received through administrative fines imposed under Subsection (3)(a) shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.
(4) An intentional violation of this chapter is a class B misdemeanor, except as otherwise provided in Subsection 13-34-201(2).
(5) A person intentionally violates this chapter if:
(a) the violation occurs after one of the following notifies the person by certified mail that the person is in violation of the chapter:
(i) the division;
(ii) the attorney general; or
(iii) a district or county attorney; and
(b) the violation is the same as the violation for which the person received the notification described in Subsection (5)(a).
13-34-111. Referral of suspected violations -- Penalty. (1) The division may report any information concerning a possible violation of this chapter or of rules made under this chapter to the attorney general, the county attorney, or district attorney of any county or prosecution district in which the activity is occurring or has occurred.
(2) The attorney described in Subsection (1) shall investigate the complaint and immediately prosecute or bring suit to enjoin an act determined to be a violation of the chapter or rules.
(3) (a) In addition to other penalties and remedies in this chapter, and in addition to its other enforcement powers under Section 13-2-6, the division director may:
(i) issue a cease and desist order; and
(ii) impose an administrative fine of up to:
(A) $100 per day that a proprietary school operates without an effective certificate of registration if the violation is not an intentional violation;
(B) $1,000 for each violation of this chapter that is not:
(I) described in Subsection (3)(a)(ii)(A); or
(II) an intentional violation; or
(C) $5,000 for each intentional violation of this chapter.
(b) All money received through administrative fines imposed under Subsection (3)(a) shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.
(4) An intentional violation of this chapter is a class B misdemeanor, except as otherwise provided in Subsection 13-34-201(2).
(5) A person intentionally violates this chapter if:
(a) the violation occurs after one of the following notifies the person by certified mail that the person is in violation of the chapter:
(i) the division;
(ii) the attorney general; or
(iii) a district or county attorney; and
(b) the violation is the same as the violation for which the person received the notification described in Subsection (5)(a).

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13-34-112. Limitation of authority.Except for satisfying the criteria and standards for registration provided for in this chapter or by division rule, nothing in this chapter gives the division authority to regulate the content of individual courses or regulate the day-to-day operations of a proprietary educational institution. 13-34-112. Limitation of authority.Except for satisfying the criteria and standards for registration provided for in this chapter or by division rule, nothing in this chapter gives the division authority to regulate the content of individual courses or regulate the day-to-day operations of a proprietary educational institution.

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13-34-113. Denial, suspension, or revocation of a certificate of registration -- Limitations.(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 a certificate of registration to operate a proprietary school under this chapter if:
(a) the division finds that the order is in the public interest; and
(b) (i) the registration statement or renewal statement is incomplete, false, or misleading in any respect;
(ii) the division determines that the educational credential associated with the proprietary school represents the undertaking or completion of educational achievement that has not been undertaken and earned; or
(iii) the proprietary school or an individual described in Subsection 13-34-107(2)(a)(ii)(B) has:
(A) violated any provision of:
(I) this chapter;
(II) the rules made by the division pursuant to this chapter; or
(III) a commitment made in a registration statement for a certificate of registration to operate the proprietary school;
(B) caused or allowed to occur a violation of any provision of:
(I) this chapter;
(II) the rules made by the division pursuant to this chapter; or
(III) a commitment made in a registration statement for a certificate of registration to operate the proprietary school;
(C) been enjoined by any court, or is the subject of an administrative or judicial order issued in this 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 based on a finding of lack of integrity, truthfulness, or mental competence;
(D) been convicted of a crime involving moral turpitude;
(E) obtained or attempted to obtain a certificate of registration under this chapter by misrepresentation;
(F) failed to timely file with the division any report required by:
(I) this chapter; or
(II) rules made by the division pursuant to this chapter;
(G) failed to furnish information requested by the division; or
(H) failed to pay an administrative fine imposed by the division in accordance with this chapter.
(2) Division staff may place reasonable limits upon a proprietary school's continued certificate of registration to operate if:
(a) there are serious concerns about the proprietary school's ability to provide the training in the manner approved by the division; and
(b) limitation is warranted to protect the students' interests.
(3) The division may:
(a) conduct a criminal background check on an individual described in Subsection

13-34-107(2)(a)(ii)(B); and
(b) require a proprietary school to provide to the division any information necessary to conduct a criminal background check on an individual described in Subsection 13-34-107(2)(a)(ii)(B).
13-34-113. Denial, suspension, or revocation of a certificate of registration -- Limitations.(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 a certificate of registration to operate a proprietary school under this chapter if:
(a) the division finds that the order is in the public interest; and
(b) (i) the registration statement or renewal statement is incomplete, false, or misleading in any respect;
(ii) the division determines that the educational credential associated with the proprietary school represents the undertaking or completion of educational achievement that has not been undertaken and earned; or
(iii) the proprietary school or an individual described in Subsection 13-34-107(2)(a)(ii)(B) has:
(A) violated any provision of:
(I) this chapter;
(II) the rules made by the division pursuant to this chapter; or
(III) a commitment made in a registration statement for a certificate of registration to operate the proprietary school;
(B) caused or allowed to occur a violation of any provision of:
(I) this chapter;
(II) the rules made by the division pursuant to this chapter; or
(III) a commitment made in a registration statement for a certificate of registration to operate the proprietary school;
(C) been enjoined by any court, or is the subject of an administrative or judicial order issued in this 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 based on a finding of lack of integrity, truthfulness, or mental competence;
(D) been convicted of a crime involving moral turpitude;
(E) obtained or attempted to obtain a certificate of registration under this chapter by misrepresentation;
(F) failed to timely file with the division any report required by:
(I) this chapter; or
(II) rules made by the division pursuant to this chapter;
(G) failed to furnish information requested by the division; or
(H) failed to pay an administrative fine imposed by the division in accordance with this chapter.
(2) Division staff may place reasonable limits upon a proprietary school's continued certificate of registration to operate if:
(a) there are serious concerns about the proprietary school's ability to provide the training in the manner approved by the division; and
(b) limitation is warranted to protect the students' interests.
(3) The division may:
(a) conduct a criminal background check on an individual described in Subsection

13-34-107(2)(a)(ii)(B); and
(b) require a proprietary school to provide to the division any information necessary to conduct a criminal background check on an individual described in Subsection 13-34-107(2)(a)(ii)(B).

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13-34-114. Consent to use of educational terms in business names.(1) For purposes of this section:
(a) "Business name" means a name filed with the Division of Corporations and Commercial Code under:
(i) Section 16-6a-401;
(ii) Section 16-10a-401;
(iii) Section 16-11-16;
(iv) Section 42-2-6.6;
(v) Section 48-2a-102; or
(vi) Section 48-2c-106.
(b) "Educational term" means the term:
(i) "university";
(ii) "college"; or
(iii) "institute" or "institution."
(2) If a statute listed in Subsection (1)(a) requires the written consent of the division to file a business name with the Division of Corporations and Commercial Code that includes an educational term, the division may consent to the use of an educational term in accordance with this statute.
(3) The division shall consent to the use of an educational term in a business name if the person seeking to file the name:
(a) is registered under this chapter;
(b) is exempt from the chapter under Section 13-34-105; or
(c) (i) is not engaged in educational activities; and
(ii) does not represent that it is engaged in educational activities.
(4) The division may withhold consent to use of an educational term in a business name if the person seeking to file the name:
(a) offers, sells, or awards a degree or any other type of educational credential; and
(b) fails to provide bona fide instruction through student-faculty interaction according to the standards and criteria established by the division under Subsection 13-34-104(5).
13-34-114. Consent to use of educational terms in business names.(1) For purposes of this section:
(a) "Business name" means a name filed with the Division of Corporations and Commercial Code under:
(i) Section 16-6a-401;
(ii) Section 16-10a-401;
(iii) Section 16-11-16;
(iv) Section 42-2-6.6;
(v) Section 48-2a-102; or
(vi) Section 48-2c-106.
(b) "Educational term" means the term:
(i) "university";
(ii) "college"; or
(iii) "institute" or "institution."
(2) If a statute listed in Subsection (1)(a) requires the written consent of the division to file a business name with the Division of Corporations and Commercial Code that includes an educational term, the division may consent to the use of an educational term in accordance with this statute.
(3) The division shall consent to the use of an educational term in a business name if the person seeking to file the name:
(a) is registered under this chapter;
(b) is exempt from the chapter under Section 13-34-105; or
(c) (i) is not engaged in educational activities; and
(ii) does not represent that it is engaged in educational activities.
(4) The division may withhold consent to use of an educational term in a business name if the person seeking to file the name:
(a) offers, sells, or awards a degree or any other type of educational credential; and
(b) fails to provide bona fide instruction through student-faculty interaction according to the standards and criteria established by the division under Subsection 13-34-104(5).

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13-34-201. Fraudulent educational credentials.(1) A person may not use, give, or receive, or attempt or conspire to do so, in connection with a business, trade, profession, or occupation, a degree or other document which has been purchased, obtained, fraudulently or illegally issued, counterfeited, materially altered, or found, or which serves to evidence the undertaking or completion of scholastic achievement if the education has not been undertaken and attained.
(2) A violation of this section is a class A misdemeanor.
13-34-201. Fraudulent educational credentials.(1) A person may not use, give, or receive, or attempt or conspire to do so, in connection with a business, trade, profession, or occupation, a degree or other document which has been purchased, obtained, fraudulently or illegally issued, counterfeited, materially altered, or found, or which serves to evidence the undertaking or completion of scholastic achievement if the education has not been undertaken and attained.
(2) A violation of this section is a class A misdemeanor.

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76-6a-1. Short title.This act shall be known and may be cited as the "Pyramid Scheme Act." 76-6a-1. Short title.This act shall be known and may be cited as the "Pyramid Scheme Act."

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76-6a-2. Definitions.As used in this chapter:
(1) (a) "Compensation" means money, money bonuses, overrides, prizes, or other real or personal property, tangible or intangible.
(b) "Compensation" does not include payment based on the sale of goods or services to anyone purchasing the goods or services for actual personal use or consumption.
(2) "Consideration" does not include payment for sales demonstration equipment and materials furnished at cost for use in making sales and not for resale, or time or effort spent in selling or recruiting activities.
(3) "Person" includes a business trust, estate, trust, joint venture, or any other legal or commercial entity.
(4) "Pyramid scheme" means any sales device or plan under which a person gives consideration to another person in exchange for compensation or the right to receive compensation which is derived primarily from the introduction of other persons into the sales device or plan rather than from the sale of goods, services, or other property.
76-6a-2. Definitions.As used in this chapter:
(1) (a) "Compensation" means money, money bonuses, overrides, prizes, or other real or personal property, tangible or intangible.
(b) "Compensation" does not include payment based on the sale of goods or services to anyone purchasing the goods or services for actual personal use or consumption.
(2) "Consideration" does not include payment for sales demonstration equipment and materials furnished at cost for use in making sales and not for resale, or time or effort spent in selling or recruiting activities.
(3) "Person" includes a business trust, estate, trust, joint venture, or any other legal or commercial entity.
(4) "Pyramid scheme" means any sales device or plan under which a person gives consideration to another person in exchange for compensation or the right to receive compensation which is derived primarily from the introduction of other persons into the sales device or plan rather than from the sale of goods, services, or other property.

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76-6a-3. Schemes prohibited -- Violation as deceptive consumer sales practice -- Prosecution of civil violations.(1) A person may not participate in, organize, establish, promote, or administer any pyramid scheme.
(2) A criminal conviction under this chapter is prima facie evidence of a violation of Section 13-11-4, the Utah Consumer Sales Practices Act.
(3) Any violation of this chapter constitutes a violation of Section 13-11-4, the Utah Consumer Sales Practices Act.
(4) All civil violations of this chapter shall be investigated and prosecuted as prescribed by the Utah Consumer Sales Practices Act.
76-6a-3. Schemes prohibited -- Violation as deceptive consumer sales practice -- Prosecution of civil violations.(1) A person may not participate in, organize, establish, promote, or administer any pyramid scheme.
(2) A criminal conviction under this chapter is prima facie evidence of a violation of Section 13-11-4, the Utah Consumer Sales Practices Act.
(3) Any violation of this chapter constitutes a violation of Section 13-11-4, the Utah Consumer Sales Practices Act.
(4) All civil violations of this chapter shall be investigated and prosecuted as prescribed by the Utah Consumer Sales Practices Act.

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76-6a-4. Operation as felony -- Participation as misdemeanor -- Investigation -- Prosecution.(1) Any person who knowingly organizes, establishes, promotes, or administers a pyramid scheme is guilty of a third degree felony.
(2) Any person who participates in a pyramid scheme only by receiving compensation for the introduction of other persons into the pyramid scheme rather than from the sale of goods, services, or other property is guilty of a class B misdemeanor.
(3) The appropriate county attorney or district attorney has primary responsibility for investigating and prosecuting criminal violations of this chapter.
76-6a-4. Operation as felony -- Participation as misdemeanor -- Investigation -- Prosecution.(1) Any person who knowingly organizes, establishes, promotes, or administers a pyramid scheme is guilty of a third degree felony.
(2) Any person who participates in a pyramid scheme only by receiving compensation for the introduction of other persons into the pyramid scheme rather than from the sale of goods, services, or other property is guilty of a class B misdemeanor.
(3) The appropriate county attorney or district attorney has primary responsibility for investigating and prosecuting criminal violations of this chapter.

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76-6a-5. Plan provisions not constituting defenses.It is not a defense to an action brought under this chapter if:
(1) The sales device or plan limits the number of persons who may be introduced into it;
(2) The sales device or plan includes additional conditions affecting eligibility for introduction into it or when compensation is received from it; or
(3) A person receives property or services in addition to the compensation or right to receive compensation in connection with a pyramid scheme.
76-6a-5. Plan provisions not constituting defenses.It is not a defense to an action brought under this chapter if:
(1) The sales device or plan limits the number of persons who may be introduced into it;
(2) The sales device or plan includes additional conditions affecting eligibility for introduction into it or when compensation is received from it; or
(3) A person receives property or services in addition to the compensation or right to receive compensation in connection with a pyramid scheme.

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76-6a-6. Rights of persons giving consideration in scheme.(1) Any person giving consideration in connection with a pyramid scheme may, notwithstanding any agreement to the contrary, declare his giving of consideration and the related sale or contract for sale void, and may bring a court action to recover the consideration. In the action, the court shall, in addition to any judgment awarded to the plaintiff, require the defendant to pay to the plaintiff interest as provided in Section 15-1-4, reasonable attorneys' fees, and the costs of the action reduced by any compensation paid by the defendant to the plaintiff in connection with the pyramid scheme.
(2) The rights, remedies, and penalties provided in this chapter are independent of and supplemental to each other and to any other right, remedy or penalty available in law or equity. Nothing contained in this chapter shall be construed to diminish or abrogate any other right, remedy or penalty.
76-6a-6. Rights of persons giving consideration in scheme.(1) Any person giving consideration in connection with a pyramid scheme may, notwithstanding any agreement to the contrary, declare his giving of consideration and the related sale or contract for sale void, and may bring a court action to recover the consideration. In the action, the court shall, in addition to any judgment awarded to the plaintiff, require the defendant to pay to the plaintiff interest as provided in Section 15-1-4, reasonable attorneys' fees, and the costs of the action reduced by any compensation paid by the defendant to the plaintiff in connection with the pyramid scheme.
(2) The rights, remedies, and penalties provided in this chapter are independent of and supplemental to each other and to any other right, remedy or penalty available in law or equity. Nothing contained in this chapter shall be construed to diminish or abrogate any other right, remedy or penalty.

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13-25a-101. Title.This chapter is known as the "Telephone and Facsimile Solicitation Act." 13-25a-101. Title.This chapter is known as the "Telephone and Facsimile Solicitation Act."

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13-25a-102. Definitions.As used in this chapter:
(1) "Advertisement" means material offering for sale, or advertising the availability or quality of, any property, goods, or services.
(2) (a) "Automated telephone dialing system" means equipment used to:
(i) store or produce telephone numbers;
(ii) call a stored or produced number; and
(iii) connect the number called with a recorded message or artificial voice.
(b) "Automated telephone dialing system" does not include equipment used with a burglar alarm system, voice messaging system, fire alarm system, or other system used in an emergency involving the immediate health or safety of a person.
(3) "Division" means the Division of Consumer Protection in the Department of Commerce.
(4) (a) "Established business relationship" means a relationship that:
(i) is based on inquiry, application, purchase, or transaction regarding products or services offered;
(ii) is formed by a voluntary two-way communication between a person making a telephone solicitation and a person to whom a telephone solicitation is made; and
(iii) has not been terminated by:
(A) an act by either party; or
(B) the passage of 18 months since the most recent inquiry, application, purchase, transaction, or voluntary two-way communication.
(b) "Established business relationship" includes a relationship with an affiliate as defined in Section 16-10a-102.
(5) "Facsimile machine" means equipment used for:
(a) scanning or encoding text or images for conversion into electronic signals for transmission; or
(b) receiving electronic signals and reproducing them as a duplicate of the original text or image.
(6) "Negative response" means a statement from a party stating the party does not wish to listen to the sales presentation or participate in the solicitation presented in the telephone call.
(7) "Telephone solicitation" means the initiation of a telephone call or message for a commercial purpose or to seek a financial donation, including calls:
(a) encouraging the purchase or rental of, or investment in, property, goods, or services, regardless of whether the transaction involves a nonprofit organization;
(b) soliciting a sale of or extension of credit for property or services to the person called;
(c) soliciting information that will be used for:
(i) the direct solicitation of a sale of property or services to the person called; or
(ii) an extension of credit to the person called for a sale of property or services; or
(d) soliciting a charitable donation involving the exchange of any premium, prize, gift, ticket, subscription, or other benefit in connection with any appeal made for a charitable purpose.
(8) "Telephone solicitor" means any natural person, firm, organization, partnership, association, or corporation who makes or causes to be made an unsolicited telephone call, including calls made by use of an automated telephone dialing system.
(9) "Unsolicited telephone call" means a telephone call for a commercial purpose or to

seek a financial donation other than a call made:
(a) in response to an express request of the person called;
(b) primarily in connection with an existing debt or contract, payment or performance of which has not been completed at the time of the call;
(c) to any person with whom the telephone solicitor has an established business relationship; or
(d) as required by law for a medical purpose.
13-25a-102. Definitions.As used in this chapter:
(1) "Advertisement" means material offering for sale, or advertising the availability or quality of, any property, goods, or services.
(2) (a) "Automated telephone dialing system" means equipment used to:
(i) store or produce telephone numbers;
(ii) call a stored or produced number; and
(iii) connect the number called with a recorded message or artificial voice.
(b) "Automated telephone dialing system" does not include equipment used with a burglar alarm system, voice messaging system, fire alarm system, or other system used in an emergency involving the immediate health or safety of a person.
(3) "Division" means the Division of Consumer Protection in the Department of Commerce.
(4) (a) "Established business relationship" means a relationship that:
(i) is based on inquiry, application, purchase, or transaction regarding products or services offered;
(ii) is formed by a voluntary two-way communication between a person making a telephone solicitation and a person to whom a telephone solicitation is made; and
(iii) has not been terminated by:
(A) an act by either party; or
(B) the passage of 18 months since the most recent inquiry, application, purchase, transaction, or voluntary two-way communication.
(b) "Established business relationship" includes a relationship with an affiliate as defined in Section 16-10a-102.
(5) "Facsimile machine" means equipment used for:
(a) scanning or encoding text or images for conversion into electronic signals for transmission; or
(b) receiving electronic signals and reproducing them as a duplicate of the original text or image.
(6) "Negative response" means a statement from a party stating the party does not wish to listen to the sales presentation or participate in the solicitation presented in the telephone call.
(7) "Telephone solicitation" means the initiation of a telephone call or message for a commercial purpose or to seek a financial donation, including calls:
(a) encouraging the purchase or rental of, or investment in, property, goods, or services, regardless of whether the transaction involves a nonprofit organization;
(b) soliciting a sale of or extension of credit for property or services to the person called;
(c) soliciting information that will be used for:
(i) the direct solicitation of a sale of property or services to the person called; or
(ii) an extension of credit to the person called for a sale of property or services; or
(d) soliciting a charitable donation involving the exchange of any premium, prize, gift, ticket, subscription, or other benefit in connection with any appeal made for a charitable purpose.
(8) "Telephone solicitor" means any natural person, firm, organization, partnership, association, or corporation who makes or causes to be made an unsolicited telephone call, including calls made by use of an automated telephone dialing system.
(9) "Unsolicited telephone call" means a telephone call for a commercial purpose or to

seek a financial donation other than a call made:
(a) in response to an express request of the person called;
(b) primarily in connection with an existing debt or contract, payment or performance of which has not been completed at the time of the call;
(c) to any person with whom the telephone solicitor has an established business relationship; or
(d) as required by law for a medical purpose.

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13-25a-103. Prohibited conduct for telephone solicitations -- Exceptions.(1) Except as provided in Subsection (2), a person may not operate or authorize the operation of an automated telephone dialing system to make a telephone solicitation.
(2) A person may operate an automated telephone dialing system if a call is made:
(a) with the prior express consent of the person who is called agreeing to receive a telephone solicitation from a specific solicitor; or
(b) to a person with whom the solicitor has an established business relationship.
(3) A person may not make a telephone solicitation to a residential telephone without prior express consent during any of the following times:
(a) before 8 a.m. or after 9 p.m. local time;
(b) on a Sunday; or
(c) on a legal holiday.
(4) A person may not make or authorize a telephone solicitation in violation of Title 47 U.S.C. 227.
(5) Any telephone solicitor who makes an unsolicited telephone call to a telephone number shall:
(a) identify the telephone solicitor;
(b) identify the business on whose behalf the telephone solicitor is soliciting;
(c) identify the purpose of the call promptly upon making contact by telephone with the person who is the object of the telephone solicitation;
(d) discontinue the solicitation if the person being solicited gives a negative response at any time during the telephone call; and
(e) hang up the phone, or in the case of an automated telephone dialing system operator, disconnect the automated telephone dialing system from the telephone line within 25 seconds of the termination of the call by the person being called.
(6) A telephone solicitor may not withhold the display of the telephone solicitor's telephone number from a caller identification service when that number is being used for telemarketing purposes and when the telephone solicitor's service or equipment is capable of allowing the display of the number.
13-25a-103. Prohibited conduct for telephone solicitations -- Exceptions.(1) Except as provided in Subsection (2), a person may not operate or authorize the operation of an automated telephone dialing system to make a telephone solicitation.
(2) A person may operate an automated telephone dialing system if a call is made:
(a) with the prior express consent of the person who is called agreeing to receive a telephone solicitation from a specific solicitor; or
(b) to a person with whom the solicitor has an established business relationship.
(3) A person may not make a telephone solicitation to a residential telephone without prior express consent during any of the following times:
(a) before 8 a.m. or after 9 p.m. local time;
(b) on a Sunday; or
(c) on a legal holiday.
(4) A person may not make or authorize a telephone solicitation in violation of Title 47 U.S.C. 227.
(5) Any telephone solicitor who makes an unsolicited telephone call to a telephone number shall:
(a) identify the telephone solicitor;
(b) identify the business on whose behalf the telephone solicitor is soliciting;
(c) identify the purpose of the call promptly upon making contact by telephone with the person who is the object of the telephone solicitation;
(d) discontinue the solicitation if the person being solicited gives a negative response at any time during the telephone call; and
(e) hang up the phone, or in the case of an automated telephone dialing system operator, disconnect the automated telephone dialing system from the telephone line within 25 seconds of the termination of the call by the person being called.
(6) A telephone solicitor may not withhold the display of the telephone solicitor's telephone number from a caller identification service when that number is being used for telemarketing purposes and when the telephone solicitor's service or equipment is capable of allowing the display of the number.

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13-25a-104. Prohibited conduct for facsimiles -- Exceptions.(1) Except as provided in Subsection (2), a person may not operate or authorize the operation of a facsimile machine to send an advertisement.
(2) A person may operate a facsimile machine if the advertisement is sent:
(a) with the prior express written consent of the person who receives the facsimile agreeing to receive the facsimile from a specific solicitor; or
(b) to a person with whom the solicitor has an established business relationship.
(3) A person may not make or authorize the sending of an advertisement by facsimile in violation of Title 47 U.S.C. 227.
13-25a-104. Prohibited conduct for facsimiles -- Exceptions.(1) Except as provided in Subsection (2), a person may not operate or authorize the operation of a facsimile machine to send an advertisement.
(2) A person may operate a facsimile machine if the advertisement is sent:
(a) with the prior express written consent of the person who receives the facsimile agreeing to receive the facsimile from a specific solicitor; or
(b) to a person with whom the solicitor has an established business relationship.
(3) A person may not make or authorize the sending of an advertisement by facsimile in violation of Title 47 U.S.C. 227.

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13-25a-105. Penalties -- Administrative and criminal.(1) Any person who violates this chapter is subject to:
(a) a cease and desist order; and
(b) an administrative fine of not less than $100 or more than $2,500 for each separate violation.
(2) All administrative fines collected under this chapter shall be deposited in the Consumer Protection Education and Training Fund created in Section 13-2-8.
(3) Any person who intentionally violates this chapter is guilty of a class A misdemeanor and may be fined up to $2,500. 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 he is in violation of this chapter.
13-25a-105. Penalties -- Administrative and criminal.(1) Any person who violates this chapter is subject to:
(a) a cease and desist order; and
(b) an administrative fine of not less than $100 or more than $2,500 for each separate violation.
(2) All administrative fines collected under this chapter shall be deposited in the Consumer Protection Education and Training Fund created in Section 13-2-8.
(3) Any person who intentionally violates this chapter is guilty of a class A misdemeanor and may be fined up to $2,500. 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 he is in violation of this chapter.

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13-25a-106. Enforcement.(1) The division shall investigate and assess administrative fines for violations of this chapter.
(2) (a) Upon referral from the division, the attorney general or any district or county attorney may:
(i) bring an action for temporary or permanent injunctive or other relief in any court of competent jurisdiction for any violation of this chapter;
(ii) upon entry of final judgment, award restitution when appropriate to any person suffering loss because of a violation of this part if proof of loss is submitted to the satisfaction of the court; or
(iii) bring an action in any court of competent jurisdiction for the collection of penalties authorized under Subsection 13-25a-105(1).
(b) In an action under Subsection (2)(a), the attorney general or any district or county attorney may recover costs, including investigative costs and attorney fees, from any violator of this chapter.
13-25a-106. Enforcement.(1) The division shall investigate and assess administrative fines for violations of this chapter.
(2) (a) Upon referral from the division, the attorney general or any district or county attorney may:
(i) bring an action for temporary or permanent injunctive or other relief in any court of competent jurisdiction for any violation of this chapter;
(ii) upon entry of final judgment, award restitution when appropriate to any person suffering loss because of a violation of this part if proof of loss is submitted to the satisfaction of the court; or
(iii) bring an action in any court of competent jurisdiction for the collection of penalties authorized under Subsection 13-25a-105(1).
(b) In an action under Subsection (2)(a), the attorney general or any district or county attorney may recover costs, including investigative costs and attorney fees, from any violator of this chapter.

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13-25a-107. Private action.(1) In addition to any other remedies, a person may bring an action in any state court of competent jurisdiction if:
(a) (i) the person has received two or more telephone solicitations or facsimile advertisements from the same individual or entity that:
(A) violates this chapter; or
(B) violates Title 47 U.S.C. 227; and
(ii) the person, following the first telephone solicitation or facsimile advertisement, notified the sender of the person's objection to receiving the telephone solicitation or facsimile advertisement; or
(b) the person has received one telephone solicitation or facsimile advertisement in violation of:
(i) Subsection 13-25a-103(1);
(ii) Subsection 13-25a-103(3);
(iii) Subsection 13-25a-103(5);
(iv) Subsection 13-25a-103(6); or
(v) Subsection 13-25a-104(1).
(2) In a suit brought under Subsection (1), a person may:
(a) recover the greater of $500 or the amount of the pecuniary loss, if any;
(b) recover court costs and reasonable attorneys' fees as determined by the court; and
(c) seek to enjoin any conduct in violation of this chapter.
13-25a-107. Private action.(1) In addition to any other remedies, a person may bring an action in any state court of competent jurisdiction if:
(a) (i) the person has received two or more telephone solicitations or facsimile advertisements from the same individual or entity that:
(A) violates this chapter; or
(B) violates Title 47 U.S.C. 227; and
(ii) the person, following the first telephone solicitation or facsimile advertisement, notified the sender of the person's objection to receiving the telephone solicitation or facsimile advertisement; or
(b) the person has received one telephone solicitation or facsimile advertisement in violation of:
(i) Subsection 13-25a-103(1);
(ii) Subsection 13-25a-103(3);
(iii) Subsection 13-25a-103(5);
(iv) Subsection 13-25a-103(6); or
(v) Subsection 13-25a-104(1).
(2) In a suit brought under Subsection (1), a person may:
(a) recover the greater of $500 or the amount of the pecuniary loss, if any;
(b) recover court costs and reasonable attorneys' fees as determined by the court; and
(c) seek to enjoin any conduct in violation of this chapter.

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13-25a-107.2. Requests to a specific telephone solicitor.(1) A telephone solicitor may not make or cause to be made a telephone solicitation to a person who has informed the telephone solicitor, either in writing or orally, that the person does not wish to receive a telephone call from the telephone solicitor.
(2) A telephone solicitor is not liable for a violation of this section if the telephone solicitor complies with 16 C.F.R. Part 310.4(b)(3) and (4).
13-25a-107.2. Requests to a specific telephone solicitor.(1) A telephone solicitor may not make or cause to be made a telephone solicitation to a person who has informed the telephone solicitor, either in writing or orally, that the person does not wish to receive a telephone call from the telephone solicitor.
(2) A telephone solicitor is not liable for a violation of this section if the telephone solicitor complies with 16 C.F.R. Part 310.4(b)(3) and (4).

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13-25a-108. Objections to telephone solicitations.A person may not make or cause to be made an unsolicited telephone call within Utah to a telephone number contained in the no-call database established under Section 13-25a-109. 13-25a-108. Objections to telephone solicitations.A person may not make or cause to be made an unsolicited telephone call within Utah to a telephone number contained in the no-call database established under Section 13-25a-109.

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13-25a-109. No-call database.(1) (a) In accordance with Subsection (1)(b), the division shall establish and provide for the operation of a no-call database to compile a list of telephone numbers of persons who have provided notice of the person's objection to receiving an unsolicited telephone call.
(b) The no-call database described in Subsection (1)(a) shall consist of the Utah telephone numbers contained in the national "do-not-call" registry established and maintained by the Federal Trade Commission pursuant to 16 C.F.R. 310.4(b)(1)(iii)(B).
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division may adopt rules to:
(a) define the improper use of the no-call database;
(b) define administrative fines for the improper use of the no-call database, which may not be greater than those imposed for a violation of the national "do-not-call" registry described in Subsection (1)(b); and
(c) define administrative fines against a person that registers another person to the no-call database without that person's consent.
(3) Information contained in the no-call database maintained under this section shall be classified as private under Title 63G, Chapter 2, Government Records Access and Management Act, and shall be used only for purposes of:
(a) compliance with this chapter; or
(b) a proceeding or action to enforce this chapter.
13-25a-109. No-call database.(1) (a) In accordance with Subsection (1)(b), the division shall establish and provide for the operation of a no-call database to compile a list of telephone numbers of persons who have provided notice of the person's objection to receiving an unsolicited telephone call.
(b) The no-call database described in Subsection (1)(a) shall consist of the Utah telephone numbers contained in the national "do-not-call" registry established and maintained by the Federal Trade Commission pursuant to 16 C.F.R. 310.4(b)(1)(iii)(B).
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division may adopt rules to:
(a) define the improper use of the no-call database;
(b) define administrative fines for the improper use of the no-call database, which may not be greater than those imposed for a violation of the national "do-not-call" registry described in Subsection (1)(b); and
(c) define administrative fines against a person that registers another person to the no-call database without that person's consent.
(3) Information contained in the no-call database maintained under this section shall be classified as private under Title 63G, Chapter 2, Government Records Access and Management Act, and shall be used only for purposes of:
(a) compliance with this chapter; or
(b) a proceeding or action to enforce this chapter.

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13-25a-111. Exemptions. Notwithstanding any other provision of this chapter, Sections 13-25a-103 and 13-25a-108 do not apply to:

(1) a telephone call made for a charitable purpose as defined in Section 13-22-2;

(2) a charitable solicitation as defined in Section 13-22-2; or

(3) a person who holds a license or registration:

(a) under Title 31A, Insurance Code;

(b) issued by the Division of Real Estate established in Section 61-2-5; or

(c) issued by the National Association of Securities Dealers.
13-25a-111. Exemptions.Notwithstanding any other provision of this chapter, Sections 13-25a-103 and 13-25a-108 do not apply to:
(1) a telephone call made for a charitable purpose as defined in Section 13-22-2;
(2) a charitable solicitation as defined in Section 13-22-2; or
(3) a person who holds a license or registration:
(a) under Title 31A, Insurance Code;
(b) issued by the Division of Real Estate established in Section 61-2-201; or
(c) issued by the National Association of Securities Dealers.

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13-26-1. Short title.This chapter is known as the "Telephone Fraud Prevention Act." 13-26-1. Short title.This chapter is known as the "Telephone Fraud Prevention Act."

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13-26-2. Definitions.As used in this chapter, unless the context otherwise requires:
(1) "Continuity plan" means a shipment, with the prior express consent of the buyer, at regular intervals of similar special-interest products. A continuity plan is distinguished from a subscription arrangement by no binding commitment period or purchase amount.
(2) "Division" means the Division of Consumer Protection.
(3) "Fictitious personal name" means a name other than an individual's true name. An "individual's true name" is the name taken at birth unless changed by operation of law or by civil action.
(4) "Material statement" or "material fact" means information that a person of ordinary intelligence or prudence would consider important in deciding whether or not to accept an offer extended through a telephone solicitation.
(5) "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.
(6) "Subscription arrangements," "standing order arrangements," "supplements," and "series arrangements" mean products or services provided, 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.
(7) (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 solicitor, not exempt under Section 13-26-4, 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 solicitor;
(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 telephone soliciting business; and
(II) the resulting solicitation meets the requirements of Subsection (7)(a); or
(D) the solicitor solicits a charitable donation involving the exchange of any premium, prize, gift, ticket, subscription, or other benefit in connection with any appeal made for a charitable purpose by an organization that is not otherwise exempt under Subsection 13-26-4(2)(b)(iv); or
(ii) a telephone solicitation as defined in Section 13-25a-102.
(b) 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.
(8) "Telephone soliciting business" means a sole proprietorship, partnership, limited liability company, corporation, or other association of individuals engaged in a common effort to conduct telephone solicitations.

(9) "Telephone solicitor" or "solicitor" means a person, partnership, limited liability company, corporation, or other entity that:
(a) makes a telephone solicitation; or
(b) causes a telephone solicitation to be made.
13-26-2. Definitions.As used in this chapter, unless the context otherwise requires:
(1) "Continuity plan" means a shipment, with the prior express consent of the buyer, at regular intervals of similar special-interest products. A continuity plan is distinguished from a subscription arrangement by no binding commitment period or purchase amount.
(2) "Division" means the Division of Consumer Protection.
(3) "Fictitious personal name" means a name other than an individual's true name. An "individual's true name" is the name taken at birth unless changed by operation of law or by civil action.
(4) "Material statement" or "material fact" means information that a person of ordinary intelligence or prudence would consider important in deciding whether or not to accept an offer extended through a telephone solicitation.
(5) "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.
(6) "Subscription arrangements," "standing order arrangements," "supplements," and "series arrangements" mean products or services provided, 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.
(7) (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 solicitor, not exempt under Section 13-26-4, 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 solicitor;
(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 telephone soliciting business; and
(II) the resulting solicitation meets the requirements of Subsection (7)(a); or
(D) the solicitor solicits a charitable donation involving the exchange of any premium, prize, gift, ticket, subscription, or other benefit in connection with any appeal made for a charitable purpose by an organization that is not otherwise exempt under Subsection 13-26-4(2)(b)(iv); or
(ii) a telephone solicitation as defined in Section 13-25a-102.
(b) 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.
(8) "Telephone soliciting business" means a sole proprietorship, partnership, limited liability company, corporation, or other association of individuals engaged in a common effort to conduct telephone solicitations.

(9) "Telephone solicitor" or "solicitor" means a person, partnership, limited liability company, corporation, or other entity that:
(a) makes a telephone solicitation; or
(b) causes a telephone solicitation to be made.

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13-26-3. Registration and bond required. (1) (a) Unless exempt under Section 13-26-4, each telephone soliciting business shall register annually with the division before engaging in telephone solicitations if:
(i) the telephone soliciting business engages in telephone solicitations that:
(A) originate in Utah; or
(B) are received in Utah; or
(ii) the telephone soliciting business conducts any business operations in Utah.
(b) The registration form shall designate an agent residing in this state who is authorized by the telephone soliciting business to receive service of process in any action brought by this state or a resident of this state.
(c) If a telephone soliciting business fails to designate an agent to receive service or fails to appoint a successor to the agent:
(i) the business' application for an initial or renewal registration shall be denied; and
(ii) any current registration shall be suspended until an agent is designated.
(2) The division may impose an annual registration fee set pursuant to Section 63J-1-504.
(3) (a) Each telephone soliciting business 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 to do business in this state; or
(iii) a certificate of deposit held in this state in a depository institution regulated by the Department of Financial Institutions.
(b) The 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 any telephone solicitation or sales violation of this chapter.
(c) The division may recover from the bond, letter of credit, or certificate of deposit investigative costs, attorney fees, and other costs of collecting and distributing funds under this section and the costs of promoting consumer education, but only if the consumer has first recovered full damages.
(d) A telephone soliciting business shall keep a bond, certificate of deposit, or letter of credit in force for one year after it notifies the division in writing that it has ceased all activities regulated by this chapter.
(e) The amount to be posted in the form of a bond, irrevocable letter of credit, or certificate of deposit shall be:
(i) $25,000 if:
(A) neither the telephone soliciting business nor any affiliated person has violated this chapter within three years preceding the date of the application; and
(B) the telephone soliciting business has fewer than 10 employees;
(ii) $50,000 if:
(A) neither the telephone soliciting business nor any affiliated person has violated this chapter within three years preceding the date of the application; and
(B) the telephone soliciting business has 10 or more employees; or
(iii) $75,000 if the telephone soliciting business or any affiliated person has violated this

chapter within three years preceding the date of the application.
(f) For purposes of Subsection (3)(e) an "affiliated person" means a contractor, director, employee, officer, owner, or partner of the telephone soliciting business.
(4) The division may establish by rule the registration requirements for telephone soliciting businesses under the terms of Title 63G, Chapter 3, Utah Administrative Rulemaking Act. An administrative proceeding conducted by the division under this chapter shall comply with the requirements of Title 63G, Chapter 4, Administrative Procedures Act.
(5) The division director may revoke a registration under this section for any violation of this chapter.
13-26-3. Registration and bond required. (1) (a) Unless exempt under Section 13-26-4, each telephone soliciting business shall register annually with the division before engaging in telephone solicitations if:
(i) the telephone soliciting business engages in telephone solicitations that:
(A) originate in Utah; or
(B) are received in Utah; or
(ii) the telephone soliciting business conducts any business operations in Utah.
(b) The registration form shall designate an agent residing in this state who is authorized by the telephone soliciting business to receive service of process in any action brought by this state or a resident of this state.
(c) If a telephone soliciting business fails to designate an agent to receive service or fails to appoint a successor to the agent:
(i) the business' application for an initial or renewal registration shall be denied; and
(ii) any current registration shall be suspended until an agent is designated.
(2) The division may impose an annual registration fee set pursuant to Section 63J-1-504.
(3) (a) Each telephone soliciting business 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 to do business in this state; or
(iii) a certificate of deposit held in this state in a depository institution regulated by the Department of Financial Institutions.
(b) The 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 any telephone solicitation or sales violation of this chapter.
(c) The division may recover from the bond, letter of credit, or certificate of deposit investigative costs, attorney fees, and other costs of collecting and distributing funds under this section and the costs of promoting consumer education, but only if the consumer has first recovered full damages.
(d) A telephone soliciting business shall keep a bond, certificate of deposit, or letter of credit in force for one year after it notifies the division in writing that it has ceased all activities regulated by this chapter.
(e) The amount to be posted in the form of a bond, irrevocable letter of credit, or certificate of deposit shall be:
(i) $25,000 if:
(A) neither the telephone soliciting business nor any affiliated person has violated this chapter within three years preceding the date of the application; and
(B) the telephone soliciting business has fewer than 10 employees;
(ii) $50,000 if:
(A) neither the telephone soliciting business nor any affiliated person has violated this chapter within three years preceding the date of the application; and
(B) the telephone soliciting business has 10 or more employees; or
(iii) $75,000 if the telephone soliciting business or any affiliated person has violated this

chapter within three years preceding the date of the application.
(f) For purposes of Subsection (3)(e) an "affiliated person" means a contractor, director, employee, officer, owner, or partner of the telephone soliciting business.
(4) The division may establish by rule the registration requirements for telephone soliciting businesses under the terms of Title 63G, Chapter 3, Utah Administrative Rulemaking Act. An administrative proceeding conducted by the division under this chapter shall comply with the requirements of Title 63G, Chapter 4, Administrative Procedures Act.
(5) The division director may revoke a registration under this section for any violation of this chapter.

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13-26-4. Exemptions from registration.(1) In any enforcement action initiated by the division, the person claiming an exemption has the burden of proving that the person is entitled to the exemption.
(2) The following are exempt from the requirements of this chapter except for the requirements of Sections 13-26-8 and 13-26-11:
(a) a broker, agent, dealer, or sales professional licensed under the licensure laws of this state, when soliciting sales within the scope of his license;
(b) the solicitation of sales by:
(i) a public utility that is regulated under Title 54 or by an affiliate of the utility;
(ii) a newspaper of general circulation;
(iii) a solicitation of sales made by a broadcaster licensed by any state or federal authority;
(iv) a nonprofit organization if no part of the net earnings from the sale inures to the benefit of any member, officer, trustee, or serving board member of the organization, or individual, or 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 solicitor'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 business address of the solicitor;
(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) any publicly-traded corporation registered with the Securities and Exchange Commission, or any subsidiary of the corporation;
(d) the solicitation of any 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 that 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 business 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 any 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 like nature;
(j) the solicitation of a person by a retail business establishment that has been in operation for at least five years in Utah under the same name as that used in connection with telemarketing if both of the following occur on a continuing basis:
(i) products are displayed and offered for sale at the place of business, or services are offered for sale and provided at the place of business; and
(ii) a majority of the seller's business involves the buyer obtaining the products or services at the seller's place of business;
(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, standing order arrangement, or supplement or series arrangement if:
(i) the seller provides the consumer with a form that the consumer may use to instruct the seller 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 sellers in commerce; or
(ii) (A) the seller 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; or
(l) a telephone marketing service company that provides telemarketing sales services under contract to sellers if:
(i) it has been doing business regularly with customers in Utah for at least five years under the same business name and with its principal office in the same location;
(ii) at least 75% of its contracts are performed on behalf of persons exempted from registration under this chapter; and
(iii) neither the company nor its principals have been enjoined from doing business or subjected to criminal actions for their business activities in this or any other state.
13-26-4. Exemptions from registration.(1) In any enforcement action initiated by the division, the person claiming an exemption has the burden of proving that the person is entitled to the exemption.
(2) The following are exempt from the requirements of this chapter except for the requirements of Sections 13-26-8 and 13-26-11:
(a) a broker, agent, dealer, or sales professional licensed under the licensure laws of this state, when soliciting sales within the scope of his license;
(b) the solicitation of sales by:
(i) a public utility that is regulated under Title 54 or by an affiliate of the utility;
(ii) a newspaper of general circulation;
(iii) a solicitation of sales made by a broadcaster licensed by any state or federal authority;
(iv) a nonprofit organization if no part of the net earnings from the sale inures to the benefit of any member, officer, trustee, or serving board member of the organization, or individual, or 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 solicitor'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 business address of the solicitor;
(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) any publicly-traded corporation registered with the Securities and Exchange Commission, or any subsidiary of the corporation;
(d) the solicitation of any 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 that 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 business 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 any 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 like nature;
(j) the solicitation of a person by a retail business establishment that has been in operation for at least five years in Utah under the same name as that used in connection with telemarketing if both of the following occur on a continuing basis:
(i) products are displayed and offered for sale at the place of business, or services are offered for sale and provided at the place of business; and
(ii) a majority of the seller's business involves the buyer obtaining the products or services at the seller's place of business;
(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, standing order arrangement, or supplement or series arrangement if:
(i) the seller provides the consumer with a form that the consumer may use to instruct the seller 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 sellers in commerce; or
(ii) (A) the seller 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; or
(l) a telephone marketing service company that provides telemarketing sales services under contract to sellers if:
(i) it has been doing business regularly with customers in Utah for at least five years under the same business name and with its principal office in the same location;
(ii) at least 75% of its contracts are performed on behalf of persons exempted from registration under this chapter; and
(iii) neither the company nor its principals have been enjoined from doing business or subjected to criminal actions for their business activities in this or any other state.

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13-26-5. Right of rescission -- Cancellation.(1) (a) Except as provided in Subsections (1)(b) and (c), in addition to any right to otherwise revoke an offer, a person making a purchase from a telephone soliciting business required to be registered under this chapter may cancel the sale up to midnight of the third business day after the receipt of the merchandise or premium, whichever is later, provided the solicitor advises the purchaser of his cancellation rights under this chapter at the time any solicitation is made.
(b) If the solicitor required to be registered under this chapter fails to orally advise a purchaser of the right to cancel under this section at the time of any solicitation, the purchaser's right to cancel shall be extended to 90 days.
(c) If the solicitor required to be registered under this chapter fails to orally advise a purchaser of his true name, telephone number, and complete street address at the time of any solicitation, the purchaser may cancel the sale at any time.
(2) Sales shall be cancelled by mailing a notice of cancellation to the telephone solicitor's correct street address, postage prepaid. If the telephone solicitor provided no correct street address, cancellation can be accomplished by sending a notice of cancellation to the division's offices, postage prepaid.
(3) (a) If a cancellation involves durable goods, as defined by rule, those goods shall be returned to the seller.
(b) If expendable goods are involved, the purchaser shall return any unused portion of those goods.
(c) A reasonable attempt shall be made to return goods to the solicitor's correct street address within seven days of exercising the right to cancel, providing the solicitor has provided the purchaser with the address. If the solicitor has failed to give a correct address, no return is required to qualify for a full refund of the purchase price.
(d) If the purchaser has used any portion of the services or goods purchased, the solicitor or telephone soliciting business shall receive a reasonable allowance for value given. This allowance may be deducted from any refund due the purchaser.
(e) A solicitor shall be jointly and severally liable with the telephone soliciting business for any refund amount due following the cancellation of a sale made by the solicitor.
(4) For the purposes of this section, "business day" does not include Sunday or a federal or state holiday.
13-26-5. Right of rescission -- Cancellation.(1) (a) Except as provided in Subsections (1)(b) and (c), in addition to any right to otherwise revoke an offer, a person making a purchase from a telephone soliciting business required to be registered under this chapter may cancel the sale up to midnight of the third business day after the receipt of the merchandise or premium, whichever is later, provided the solicitor advises the purchaser of his cancellation rights under this chapter at the time any solicitation is made.
(b) If the solicitor required to be registered under this chapter fails to orally advise a purchaser of the right to cancel under this section at the time of any solicitation, the purchaser's right to cancel shall be extended to 90 days.
(c) If the solicitor required to be registered under this chapter fails to orally advise a purchaser of his true name, telephone number, and complete street address at the time of any solicitation, the purchaser may cancel the sale at any time.
(2) Sales shall be cancelled by mailing a notice of cancellation to the telephone solicitor's correct street address, postage prepaid. If the telephone solicitor provided no correct street address, cancellation can be accomplished by sending a notice of cancellation to the division's offices, postage prepaid.
(3) (a) If a cancellation involves durable goods, as defined by rule, those goods shall be returned to the seller.
(b) If expendable goods are involved, the purchaser shall return any unused portion of those goods.
(c) A reasonable attempt shall be made to return goods to the solicitor's correct street address within seven days of exercising the right to cancel, providing the solicitor has provided the purchaser with the address. If the solicitor has failed to give a correct address, no return is required to qualify for a full refund of the purchase price.
(d) If the purchaser has used any portion of the services or goods purchased, the solicitor or telephone soliciting business shall receive a reasonable allowance for value given. This allowance may be deducted from any refund due the purchaser.
(e) A solicitor shall be jointly and severally liable with the telephone soliciting business for any refund amount due following the cancellation of a sale made by the solicitor.
(4) For the purposes of this section, "business day" does not include Sunday or a federal or state holiday.

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13-26-8. Penalties.(1) (a) Any telephone soliciting business or any person associated with a telephone soliciting business, including solicitors, salespersons, agents, representatives of a solicitor, or independent contractor, who violates this chapter as a first offense is guilty of a class B misdemeanor.
(b) In the case of a second offense, the person is guilty of a class A misdemeanor.
(c) In the case of three or more offenses, the person is guilty of a third degree felony.
(d) In addition to other penalties under this Subsection (1), 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. All money received through administrative fines imposed under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.
(2) Any telephone soliciting business or any person associated with a telephone soliciting business, including solicitors, salespersons, agents, representatives of a solicitor, or independent contractors, who violates any provision of this chapter shall be subject to a civil penalty in a court of competent jurisdiction not exceeding $2,500 for each unlawful transaction.
13-26-8. Penalties.(1) (a) Any telephone soliciting business or any person associated with a telephone soliciting business, including solicitors, salespersons, agents, representatives of a solicitor, or independent contractor, who violates this chapter as a first offense is guilty of a class B misdemeanor.
(b) In the case of a second offense, the person is guilty of a class A misdemeanor.
(c) In the case of three or more offenses, the person is guilty of a third degree felony.
(d) In addition to other penalties under this Subsection (1), 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. All money received through administrative fines imposed under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.
(2) Any telephone soliciting business or any person associated with a telephone soliciting business, including solicitors, salespersons, agents, representatives of a solicitor, or independent contractors, who violates any provision of this chapter shall be subject to a civil penalty in a court of competent jurisdiction not exceeding $2,500 for each unlawful transaction.

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13-26-10. Provisions of chapter not exclusive.The remedies, duties, prohibitions, and penalties of this chapter are not exclusive and are in addition to all other causes of action, remedies, and penalties provided by law. 13-26-10. 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.

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13-26-11. Prohibited practices.(1) It is unlawful for any solicitor:
(a) to solicit prospective purchasers on behalf of a telephone soliciting business that is not registered with the division or exempt from registration under this chapter;
(b) to use a fictitious personal name in connection with a telephone solicitation;
(c) to make or cause to be made any untrue material statement, or fail to disclose a material fact necessary to make any statement made not misleading, whether in connection with a telephone solicitation or a filing with the division;
(d) to make or authorize the making of any misrepresentation about its compliance with this chapter to any prospective or actual purchaser;
(e) to fail to refund within 30 days any amount due a purchaser who exercises the right to cancel under Section 13-26-5; or
(f) to fail to orally advise a purchaser of the purchaser's right to cancel under Section 13-26-5 unless the solicitor is exempt under Section 13-26-4.
(2) It is unlawful for any telephone soliciting business:
(a) to cause or permit any solicitor to violate any provision of this chapter; or
(b) to use inmates in telephone soliciting operations where inmates have access to personal data about an individual sufficient to physically locate or contact that individual, such as names, addresses, telephone numbers, Social Security numbers, credit card information, or physical descriptions.
13-26-11. Prohibited practices.(1) It is unlawful for any solicitor:
(a) to solicit prospective purchasers on behalf of a telephone soliciting business that is not registered with the division or exempt from registration under this chapter;
(b) to use a fictitious personal name in connection with a telephone solicitation;
(c) to make or cause to be made any untrue material statement, or fail to disclose a material fact necessary to make any statement made not misleading, whether in connection with a telephone solicitation or a filing with the division;
(d) to make or authorize the making of any misrepresentation about its compliance with this chapter to any prospective or actual purchaser;
(e) to fail to refund within 30 days any amount due a purchaser who exercises the right to cancel under Section 13-26-5; or
(f) to fail to orally advise a purchaser of the purchaser's right to cancel under Section 13-26-5 unless the solicitor is exempt under Section 13-26-4.
(2) It is unlawful for any telephone soliciting business:
(a) to cause or permit any solicitor to violate any provision of this chapter; or
(b) to use inmates in telephone soliciting operations where inmates have access to personal data about an individual sufficient to physically locate or contact that individual, such as names, addresses, telephone numbers, Social Security numbers, credit card information, or physical descriptions.

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13-5-1. Short title.This act shall be known and may be cited as the "Unfair Practices Act." 13-5-1. Short title.This act shall be known and may be cited as the "Unfair Practices Act."

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13-5-2. "Person" defined.When used in this act, unless the context otherwise requires, the term "person" means an individual, a corporation, a partnership, an association, a joint stock company, a business trust or any unincorporated organization. 13-5-2. "Person" defined.When used in this act, unless the context otherwise requires, the term "person" means an individual, a corporation, a partnership, an association, a joint stock company, a business trust or any unincorporated organization.

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13-5-2.5. Procedure to prevent unfair competition.Unless otherwise provided in this chapter:
(1) Unfair methods of competition in commerce or trade are unlawful and shall be enjoined as provided by this section.
(2) The division may prevent persons, except banks, common carriers, and other public utilities subject to regulation, from using unfair methods of competition in commerce or trade.
(3) If the division has reason to believe that any person has been or is using unfair methods of competition in commerce or trade, and it appears to the division that it would be in the interest of the public to stop the unfair methods of competition, the division may begin adjudicative proceedings and may issue an order directing the person to cease and desist from using those methods of competition.
(4) The division may file suit to enjoin and restrain a person from conducting the unfair competition if:
(a) after the adjudicative proceedings, the executive director believes that the method of competition in question is prohibited by this section; or
(b) no hearing is requested; and
(i) the person accused of unfair competition does not cease the unfair competition; or
(ii) the person accused of unfair competition begins the unfair competition again after discontinuing it.
(5) The attorney general, or the county attorneys in their respective counties, shall conduct unfair competition proceedings upon request by the division.
(6) No order of the division or judgment of the court to enforce the order may waive the liability of any person under the antitrust laws or other laws of this state.
(7) (a) Complaints, orders, notices, and the processes of the division may be served by anyone authorized by the division by:
(i) delivering a copy to the person to be served, to a member of the partnership to be served, or to the president, secretary, other executive officer, or a director of the corporation to be served;
(ii) leaving a copy at the principal office or place of business of the person; or
(iii) sending by registered mail a copy addressed to the person at his principal place of business or office.
(b) The verified return by the person serving the complaint, order, notice, or other process setting forth the manner of service or the return post-office receipt for the complaint, order, notice, or other process sent by registered mail is proof of service.
13-5-2.5. Procedure to prevent unfair competition.Unless otherwise provided in this chapter:
(1) Unfair methods of competition in commerce or trade are unlawful and shall be enjoined as provided by this section.
(2) The division may prevent persons, except banks, common carriers, and other public utilities subject to regulation, from using unfair methods of competition in commerce or trade.
(3) If the division has reason to believe that any person has been or is using unfair methods of competition in commerce or trade, and it appears to the division that it would be in the interest of the public to stop the unfair methods of competition, the division may begin adjudicative proceedings and may issue an order directing the person to cease and desist from using those methods of competition.
(4) The division may file suit to enjoin and restrain a person from conducting the unfair competition if:
(a) after the adjudicative proceedings, the executive director believes that the method of competition in question is prohibited by this section; or
(b) no hearing is requested; and
(i) the person accused of unfair competition does not cease the unfair competition; or
(ii) the person accused of unfair competition begins the unfair competition again after discontinuing it.
(5) The attorney general, or the county attorneys in their respective counties, shall conduct unfair competition proceedings upon request by the division.
(6) No order of the division or judgment of the court to enforce the order may waive the liability of any person under the antitrust laws or other laws of this state.
(7) (a) Complaints, orders, notices, and the processes of the division may be served by anyone authorized by the division by:
(i) delivering a copy to the person to be served, to a member of the partnership to be served, or to the president, secretary, other executive officer, or a director of the corporation to be served;
(ii) leaving a copy at the principal office or place of business of the person; or
(iii) sending by registered mail a copy addressed to the person at his principal place of business or office.
(b) The verified return by the person serving the complaint, order, notice, or other process setting forth the manner of service or the return post-office receipt for the complaint, order, notice, or other process sent by registered mail is proof of service.

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13-5-3. Unlawful discriminations -- Burden of proof -- Taking or offering commissions -- Payments for benefit of customers -- Discrimination among purchasers -- Inducing discriminations. (1) (a) It is unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly, to discriminate in price between different purchasers of commodities of like grade and quality, where either or any of the purchasers involved in such discrimination are in commerce, where such commodities are sold for use, consumption, or resale within the state and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them.

(b) Nothing in this chapter shall prevent:

(i) differentials which make only due allowance for differences in the cost of manufacture, sale, or delivery resulting from the different methods or quantities in which such commodities are to such purchasers sold or delivered;

(ii) persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade; and

(iii) price changes from time to time in response to changing conditions affecting the market for or the marketability of the goods concerned, such as, but not limited to, actual or imminent deterioration of perishable goods, obsolescence of seasonal goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned.

(2) Upon proof being made, at any suit on a complaint under this section, that there has been discrimination in price or services or facilities furnished or in payment for services or facilities to be rendered, the burden of rebutting the prima-facie case thus made by showing justification shall be upon the person charged with a violation of this section. However nothing in this chapter shall prevent a seller rebutting the prima-facie case thus made by showing that his lower price or the furnishing of services or facilities to any purchaser or purchasers was made in good faith to meet an equally low price of a competitor, or the services or facilities furnished by a competitor.

(3) It is unlawful for any person engaged in commerce in the course of such commerce, to pay or grant, or to receive or accept, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, except for and not exceeding the actual cost of such services rendered in connection with the sale or purchase of goods, wares, or merchandise.

(4) It is unlawful for any person engaged in commerce to pay or contract for the payment of anything of value to or for the benefit of a customer of such person in the course of such commerce as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the processing, handling, sale, or offering for sale of any products, or commodities manufactured, sold, or offered for sale by such person, unless such payment or consideration is available on proportionally equal terms to all other customers competing in the distribution of such products or commodities.

(5) It is unlawful for any person to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale with or without processing, by contracting to furnish or furnishing, or by contributing to the furnishing of, any services or facilities connected with the processing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all purchasers on proportionally equal terms.

(6) It is unlawful for any person engaged in commerce, in the course of such commerce, knowingly to induce or receive a discrimination in price which is prohibited by this section.
13-5-3. Unlawful discriminations -- Burden of proof -- Taking or offering commissions -- Payments for benefit of customers -- Discrimination among purchasers -- Inducing discriminations.(1) (a) It is unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly, to discriminate in price between different purchasers of commodities of like grade and quality, where either or any of the purchasers involved in such discrimination are in commerce, where such commodities are sold for use, consumption, or resale within the state and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them.
(b) Nothing in this chapter prevents:
(i) differentials which make only due allowance for differences in the cost of manufacture, sale, or delivery resulting from the different methods or quantities in which such commodities are to such purchasers sold or delivered;
(ii) persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade; and
(iii) price changes from time to time in response to changing conditions affecting the market for or the marketability of the goods concerned, including actual or imminent deterioration of perishable goods, obsolescence of seasonal goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned.
(2) Upon proof being made, at any suit on a complaint under this section, that there has been discrimination in price or services or facilities furnished or in payment for services or facilities to be rendered, the burden of rebutting the prima-facie case thus made by showing justification shall be upon the person charged with a violation of this section. However nothing in this chapter shall prevent a seller rebutting the prima-facie case thus made by showing that his lower price or the furnishing of services or facilities to any purchaser or purchasers was made in good faith to meet an equally low price of a competitor, or the services or facilities furnished by a competitor.
(3) It is unlawful for any person engaged in commerce in the course of such commerce, to pay or grant, or to receive or accept, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, except for and not exceeding the actual cost of such services rendered in connection with the sale or purchase of goods, wares, or merchandise.
(4) It is unlawful for any person engaged in commerce to pay or contract for the payment of anything of value to or for the benefit of a customer of such person in the course of such commerce as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the processing, handling, sale, or offering for sale of any products, or commodities manufactured, sold, or offered for sale by such person, unless such payment or consideration is available on proportionally equal terms to all other customers competing in the distribution of such products or commodities.
(5) It is unlawful for any person to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale with or without processing, by contracting to furnish or furnishing, or by contributing to the furnishing of, any services or facilities connected with the processing, handling, sale, or offering for sale of such commodity so

purchased upon terms not accorded to all purchasers on proportionally equal terms.
(6) It is unlawful for any person engaged in commerce, in the course of such commerce, knowingly to induce or receive a discrimination in price which is prohibited by this section.

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13-5-4. Return of net earnings or surplus by cooperatives to members.Nothing in this act shall prevent a cooperative association from returning to its members, producers or consumers the whole, or any part of, the net earnings or surplus resulting from its trading operations, in proportion to their purchases or sales from, to or through the association. 13-5-4. Return of net earnings or surplus by cooperatives to members.Nothing in this act shall prevent a cooperative association from returning to its members, producers or consumers the whole, or any part of, the net earnings or surplus resulting from its trading operations, in proportion to their purchases or sales from, to or through the association.

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13-5-5. "Commerce" defined.Definition of "commerce" as used in this bill shall be construed to mean intrastate commerce in the state of Utah. 13-5-5. "Commerce" defined.Definition of "commerce" as used in this bill shall be construed to mean intrastate commerce in the state of Utah.

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13-5-6. Liability of agents.Any person who, either as director, officer or agent of any firm or corporation or as agent of any person, violating the provisions of this act, assists or aids directly or indirectly, in such violation shall be responsible therefor equally with the person, firm or corporation for whom or for which he acts. 13-5-6. Liability of agents.Any person who, either as director, officer or agent of any firm or corporation or as agent of any person, violating the provisions of this act, assists or aids directly or indirectly, in such violation shall be responsible therefor equally with the person, firm or corporation for whom or for which he acts.

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13-5-8. Advertising goods not prepared to supply.It shall be unlawful for any person engaged in business within the state to advertise goods, wares, or merchandise that person is not prepared to supply. 13-5-8. Advertising goods not prepared to supply.It shall be unlawful for any person engaged in business within the state to advertise goods, wares, or merchandise that person is not prepared to supply.

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13-5-9. Limitation on quantity of article or product sold or offered for sale to any one customer.A person may not circumvent the provisions of this chapter relating to the quantity of articles or products any one customer may purchase by requiring presentation of coupons, certificates, special purchase authorizations, or any other procedures designed in any way to limit quantity of purchases as provided herein. 13-5-9. Limitation on quantity of article or product sold or offered for sale to any one customer.A person may not circumvent the provisions of this chapter relating to the quantity of articles or products any one customer may purchase by requiring presentation of coupons, certificates, special purchase authorizations, or any other procedures designed in any way to limit quantity of purchases as provided herein.

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13-5-10. Cost -- Purchase price at forced sales.In establishing the cost of a given article, product or commodity to the distributor and vendor, the invoice cost of said article, product or commodity purchased at a forced, bankrupt, closeout sale or other sale outside of the ordinary channels of trade may not be used as a basis for justifying a price lower than one based upon the replacement cost as of the date of said sale of said article, product or commodity replaced through the ordinary channels of trade, unless said articles, product or commodity is kept separate from goods purchased in the ordinary channels of trade and unless said article, product or commodity is advertised and sold as merchandise purchased at a forced, bankrupt, closeout sale, or by means other than through the ordinary channels of trade, and said advertising shall state the conditions under which said goods were so purchased, and the quantity of such merchandise to be sold or offered for sale. 13-5-10. Cost -- Purchase price at forced sales.In establishing the cost of a given article, product or commodity to the distributor and vendor, the invoice cost of said article, product or commodity purchased at a forced, bankrupt, closeout sale or other sale outside of the ordinary channels of trade may not be used as a basis for justifying a price lower than one based upon the replacement cost as of the date of said sale of said article, product or commodity replaced through the ordinary channels of trade, unless said articles, product or commodity is kept separate from goods purchased in the ordinary channels of trade and unless said article, product or commodity is advertised and sold as merchandise purchased at a forced, bankrupt, closeout sale, or by means other than through the ordinary channels of trade, and said advertising shall state the conditions under which said goods were so purchased, and the quantity of such merchandise to be sold or offered for sale.

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13-5-11. Proceedings -- Local cost surveys as evidence.In any injunction proceedings or in the prosecution of any person as officer, director or agent, it shall be sufficient to allege and prove the unlawful intent of the person, firm or corporation for whom or for which he acts. Where a particular trade or industry of which the person, firm or corporation complained against is a member, has an established cost survey for the locality and vicinity in which the offense is committed, the said cost survey shall be deemed prima-facie evidence in proving the costs of the person, firm or corporation complained against within the provisions of this act, unless the person, firm or corporation shall have kept a continuous, accurate and comprehensive record of the cost of business of the person, firm or corporation, in which event said record may be introduced to rebut the cost survey. 13-5-11. Proceedings -- Local cost surveys as evidence.In any injunction proceedings or in the prosecution of any person as officer, director or agent, it shall be sufficient to allege and prove the unlawful intent of the person, firm or corporation for whom or for which he acts. Where a particular trade or industry of which the person, firm or corporation complained against is a member, has an established cost survey for the locality and vicinity in which the offense is committed, the said cost survey shall be deemed prima-facie evidence in proving the costs of the person, firm or corporation complained against within the provisions of this act, unless the person, firm or corporation shall have kept a continuous, accurate and comprehensive record of the cost of business of the person, firm or corporation, in which event said record may be introduced to rebut the cost survey.

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13-5-12. Sales exempt from chapter.(1) The provisions of this chapter shall not apply to any sale made:

(a) in closing out in good faith the owner's stock or any part thereof for the purpose of discontinuing his trade in any such stock or commodity, and in the case of the sale of seasonal goods, or to the bona fide sale of perishable goods to prevent loss to the vendor by spoilage or depreciation; provided, prior notice is given to the public thereof;

(b) when the goods are damaged or deteriorated in quality, and prior notice is given to the public thereof;

(c) by an officer acting under the orders of any court;

(d) in an endeavor made in good faith to meet the legal prices of a competitor as herein defined selling the same article, product or commodity in the same locality or trade area;

(e) by manufacturers, producers, brokers or wholesale distributors meeting in good faith prices established by interstate competition regardless of cost; provided, such prices are available to all persons buying on like terms and conditions in the same locality and vicinity.

(2) Any person, who performs work upon, renovates, alters or improves any personal property belonging to another person, except necessary repairs due to damage in transit, shall be construed to be a vendor within the meaning of this chapter.
13-5-12. Sales exempt from chapter.(1) The provisions of this chapter do not apply to any sale made:
(a) in closing out in good faith the owner's stock or any part thereof for the purpose of discontinuing his trade in any such stock or commodity, and in the case of the sale of seasonal goods, or to the bona fide sale of perishable goods to prevent loss to the vendor by spoilage or depreciation; provided, prior notice is given to the public thereof;
(b) when the goods are damaged or deteriorated in quality, and prior notice is given to the public thereof;
(c) by an officer acting under the orders of any court;
(d) in an endeavor made in good faith to meet the legal prices of a competitor as herein defined selling the same article, product or commodity in the same locality or trade area;
(e) by manufacturers, producers, brokers or wholesale distributors meeting in good faith prices established by interstate competition regardless of cost; provided, such prices are available to all persons buying on like terms and conditions in the same locality and vicinity.
(2) Any person, who performs work upon, renovates, alters or improves any personal property belonging to another person, except necessary repairs due to damage in transit, shall be construed to be a vendor within the meaning of this chapter.

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13-5-13. Contracts in violation declared illegal. Any contract expressed or implied, made by any person, in violation of any of the provisions of this act is declared to be an illegal contract and no recovery thereon shall be had. 13-5-13. Contracts in violation declared illegal. Any contract expressed or implied, made by any person, in violation of any of the provisions of this act is declared to be an illegal contract and no recovery thereon shall be had.

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13-5-14. Injunctive relief -- Damages -- Immunity.Any person or the state of Utah may maintain an action to enjoin a continuance of any act in violation of this chapter, and, if injured by the act, for the recovery of damages. If, in such action, the court finds that the defendant is violating or has violated any of the provisions of this chapter, it shall enjoin the defendant from a continuance of the violation. It is not necessary that actual damages to the plaintiff be alleged or proved. In addition to such injunctive relief, the plaintiff is entitled to recover from the defendant three times the amount of the actual damages sustained or $2,000, whichever is greater, plus court costs.
Any defendant in an action brought under this section may be required to testify. The books and records of such defendant may be brought into court and introduced, by reference, into evidence. No information so obtained may be used against the defendant as a basis for a misdemeanor prosecution under this chapter.

Amended by Chapter 58, 1983 General Session
13-5-14. Injunctive relief -- Damages -- Immunity.Any person or the state of Utah may maintain an action to enjoin a continuance of any act in violation of this chapter, and, if injured by the act, for the recovery of damages. If, in such action, the court finds that the defendant is violating or has violated any of the provisions of this chapter, it shall enjoin the defendant from a continuance of the violation. It is not necessary that actual damages to the plaintiff be alleged or proved. In addition to such injunctive relief, the plaintiff is entitled to recover from the defendant three times the amount of the actual damages sustained or $2,000, whichever is greater, plus court costs.
Any defendant in an action brought under this section may be required to testify. The books and records of such defendant may be brought into court and introduced, by reference, into evidence. No information so obtained may be used against the defendant as a basis for a misdemeanor prosecution under this chapter.

Amended by Chapter 58, 1983 General Session

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13-5-15. Penalty for violation of chapter.Any person, whether as principal, agent, officer or director, for himself or for another person, who knowingly violates this chapter, is guilty of a misdemeanor for each violation. Upon conviction he shall be punished by a fine not to exceed $5,000, or by imprisonment not to exceed 12 months or by both. 13-5-15. Penalty for violation of chapter.Any person, whether as principal, agent, officer or director, for himself or for another person, who knowingly violates this chapter, is guilty of a misdemeanor for each violation. Upon conviction he shall be punished by a fine not to exceed $5,000, or by imprisonment not to exceed 12 months or by both.

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13-5-16. Separability clause.
If any section, sentence, clause or phrase of this act is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of the act. The Legislature hereby declares that it would have passed this act, and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more other sections, sentences, clauses or phrases be declared unconstitutional.
13-5-16. Separability clause.If any section, sentence, clause or phrase of this act is for any reason held to be unconstitutional, such decision does not affect the validity of the remaining portions of the act. The Legislature hereby declares that it would have passed this act, and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more other sections, sentences, clauses or phrases be declared unconstitutional.

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13-5-17. Policy of act.The Legislature declared that the purpose of this act is to safeguard the public against the creation or perpetuation of monopolies and to foster and encourage competition, by prohibiting unfair and discriminatory practices by which fair and honest competition is destroyed or prevented. This act shall be liberally construed that its beneficial purposes may be subserved. 13-5-17. Policy of act.The Legislature declared that the purpose of this act is to safeguard the public against the creation or perpetuation of monopolies and to foster and encourage competition, by prohibiting unfair and discriminatory practices by which fair and honest competition is destroyed or prevented. This act shall be liberally construed that its beneficial purposes may be subserved.

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13-5-18. Cost -- Separate entities of business.For the purposes of this act, manufacturing, jobbing, wholesaling and retailing activities of a person shall be considered separate and distinct entities of business in establishing and determining cost of any article, product or commodity. 13-5-18. Cost -- Separate entities of business.For the purposes of this act, manufacturing, jobbing, wholesaling and retailing activities of a person shall be considered separate and distinct entities of business in establishing and determining cost of any article, product or commodity.

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13-42-101. Title. This chapter shall be known as the "Uniform Debt-Management Services Act." 13-42-101. Title. This chapter shall be known as the "Uniform Debt-Management Services Act."

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13-42-102. Definitions.
In this chapter:
(1) "Administrator" means the Division of Consumer Protection.
(2) "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 in either the current year or the preceding year or 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 in either the current year or the preceding year;
(v) an officer or director of, or an individual performing similar functions with respect to, a person described in Subsection (2)(b)(i);
(vi) the spouse of, or an individual occupying the residence of, an individual described in Subsections (2)(b)(i) through (v); or
(vii) an individual who has the relationship specified in Subsection (2)(a)(iv) to an individual or the spouse of an individual described in Subsections (2)(b)(i) through (v).
(3) "Agreement" means an agreement between a provider and an individual for the performance of debt-management services.
(4) "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) "Business address" means the physical location of a business, including the name and number of a street.
(6) "Certified counselor" means an individual certified by a training program or certifying organization, approved by the administrator, that authenticates the competence of individuals providing education and assistance to other individuals in connection with debt-management services.
(7) "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) "Day" means calendar day.

(9) "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 in an attorney-client relationship by an attorney licensed or otherwise authorized to practice law in this state;
(b) accounting services provided in an accountant-client relationship by a certified public accountant licensed to provide accounting services in this state; or
(c) financial-planning services provided in a financial planner-client relationship by a member of a financial-planning profession whose members the administrator, by rule, determines are:
(i) licensed by this state;
(ii) subject to a disciplinary mechanism;
(iii) subject to a code of professional responsibility; and
(iv) subject to a continuing education requirement.
(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) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, or any other legal or commercial entity. The term does not include a public corporation, government, or governmental subdivision, agency, or instrumentality.
(13) "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.
(14) "Principal amount of the debt" means the amount of a debt at the time of an agreement.
(15) "Provider" means a person that provides, offers to provide, or agrees to provide debt-management services directly or through others.
(16) "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.
(17) "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.
(18) "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.
(19) "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.
(20) "Trust account" means an account held by a provider that is:
(a) established in an insured bank;
(b) separate from other accounts of the provider or its designee;
(c) designated as a trust account or other account designated to indicate that the money in the account is not the money of the provider or its designee; and

(d) used to hold money of one or more individuals for disbursement to creditors of the individuals.

13-42-102. Definitions.
In this chapter:
(1) "Administrator" means the Division of Consumer Protection.
(2) "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 in either the current year or the preceding year or 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 in either the current year or the preceding year;
(v) an officer or director of, or an individual performing similar functions with respect to, a person described in Subsection (2)(b)(i);
(vi) the spouse of, or an individual occupying the residence of, an individual described in Subsections (2)(b)(i) through (v); or
(vii) an individual who has the relationship specified in Subsection (2)(a)(iv) to an individual or the spouse of an individual described in Subsections (2)(b)(i) through (v).
(3) "Agreement" means an agreement between a provider and an individual for the performance of debt-management services.
(4) "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) "Business address" means the physical location of a business, including the name and number of a street.
(6) "Certified counselor" means an individual certified by a training program or certifying organization, approved by the administrator, that authenticates the competence of individuals providing education and assistance to other individuals in connection with debt-management services.
(7) "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) "Day" means calendar day.

(9) "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 in an attorney-client relationship by an attorney licensed or otherwise authorized to practice law in this state;
(b) accounting services provided in an accountant-client relationship by a certified public accountant licensed to provide accounting services in this state; or
(c) financial-planning services provided in a financial planner-client relationship by a member of a financial-planning profession whose members the administrator, by rule, determines are:
(i) licensed by this state;
(ii) subject to a disciplinary mechanism;
(iii) subject to a code of professional responsibility; and
(iv) subject to a continuing education requirement.
(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) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, or any other legal or commercial entity. The term does not include a public corporation, government, or governmental subdivision, agency, or instrumentality.
(13) "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.
(14) "Principal amount of the debt" means the amount of a debt at the time of an agreement.
(15) "Provider" means a person that provides, offers to provide, or agrees to provide debt-management services directly or through others.
(16) "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.
(17) "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.
(18) "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.
(19) "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.
(20) "Trust account" means an account held by a provider that is:
(a) established in an insured bank;
(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.

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13-42-103. 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) 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 provides the services or from their creditors.
(3) 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), of a bank if the affiliate is regulated by a federal or state banking regulatory authority; or
(d) a title insurer, escrow company, or other person that provides bill-paying services if the provision of debt-management services is incidental to the bill-paying services.
13-42-103. 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) 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 provides the services or from their creditors.
(3) 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), 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.

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13-42-104. Registration required.(1) Except as otherwise provided in Subsection (2), a provider may not provide debt-management services to an individual who it reasonably should know resides in this state at the time it 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 shall maintain and publicize a list of the names of all registered providers.
13-42-104. Registration required.(1) Except as otherwise provided in Subsection (2), a provider may not provide debt-management services to an individual who it reasonably should know resides in this state at the time it 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 shall maintain and publicize a list of the names of all registered providers.

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13-42-105. Application for registration -- Form, fee, and accompanying documents.(1) An application for registration as a provider must be in a form prescribed by the administrator.

(2) Subject to adjustment of dollar amounts pursuant to Subsection 13-42-132(6), an application for registration as a provider must be accompanied by:

(a) the fee established by the administrator in accordance with Section 63J-1-303;

(b) the bond required by Section 13-42-113;

(c) identification of all trust accounts required by Section 13-42-122 and an irrevocable consent authorizing the administrator 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 by a nationally recognized rating organization;

(iii) with no deductible;

(iv) payable to the applicant, the individuals who have agreements with the applicant, and this state, as their interests may appear; and

(v) not subject to cancellation by the applicant without the approval of the administrator;

(e) a record consenting to the jurisdiction of this state containing:

(i) the name, business address, and other contact information of its registered agent in this state for purposes of service of process; or

(ii) the appointment of the administrator 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 is exempt from taxation, evidence of not-for-profit and tax-exempt status applicable to the applicant under the Internal Revenue Code, 26 U.S.C. Section 501.
13-42-105. 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.
(2) Subject to adjustment of dollar amounts pursuant to Subsection 13-42-132(6), an application for registration as a provider shall be accompanied by:
(a) the fee established by the administrator in accordance with Section 63J-1-504;
(b) the bond required by Section 13-42-113;
(c) identification of all trust accounts required by Section 13-42-122 and an irrevocable consent authorizing the administrator 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;
(iii) with a deductible not exceeding $5,000;
(iv) payable for the benefit of the applicant, this state, and individuals who are residents of this state, as their 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;
(e) a record consenting to the jurisdiction of this state containing:
(i) the name, business address, and other contact information of its registered agent in this state for purposes of service of process; or
(ii) the appointment of the administrator 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 is exempt from taxation, evidence of not-for-profit and tax-exempt status applicable to the applicant under the Internal Revenue Code, 26 U.S.C. Section 501.
(3) (a) The administrator may waive or reduce the insurance requirement in Subsection 13-42-105(2)(d) if the provider does not:
(i) maintain control of a trust account or receive money paid by an individual pursuant to 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 under Subsection (3)(a) shall balance the reduction in risk posed by a provider meeting the stated requirements against any continued need for insurance against employee and director dishonesty.

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13-42-106. Application for registration -- Required information. An application for registration must be signed under penalty of perjury and include:

(1) the applicant's name, principal business address and telephone number, and all other business addresses in this state, electronic-mail addresses, and Internet website addresses;

(2) all names under which the applicant conducts business;

(3) the address of each location in this state at which the applicant will provide debt-management services or a statement that the applicant will have no such location;

(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 jurisdiction in which, during the five years immediately preceding the application:

(a) the applicant or any of its officers or directors has been licensed or registered to provide debt-management services; or

(b) individuals have resided when they received debt-management services from the applicant;

(6) a statement describing, to the extent it is known or should be known by the applicant, any material civil or criminal judgment or litigation and any material administrative or enforcement action by a governmental agency in any jurisdiction against the applicant, any of its officers, directors, owners, or agents, or any person who 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 has not been in operation for the two years preceding the application, for the period of its existence;

(8) evidence of accreditation by an independent accrediting organization approved by the administrator;

(9) evidence that, within 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 or to be used in those programs;

(11) a description of the applicant's financial analysis and initial budget plan, including any form or electronic model, used 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 of each director during the ten years immediately preceding 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 affiliate of the applicant; or

(b) any entity that provides products or services to the applicant or any 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 has not been in operation for the three years preceding the application, for the period of its existence;

(18) the identity of each director who is an affiliate, as defined in Subsection 13-42-102(2)(a) or (2)(b)(i), (ii), (iv), (v), (vi), or (vii), of the applicant; and

(19) any other information that the administrator reasonably requires to perform the administrator's duties under Section 13-42-109.
13-42-106. Application for registration -- Required information. An application for registration shall be signed under penalty of perjury and include:
(1) the applicant's name, principal business address and telephone number, and all other business addresses in this state, electronic-mail addresses, and Internet website addresses;
(2) all names under which the applicant conducts business;
(3) the address of each location in this state at which the applicant will provide debt-management services or a statement that the applicant will have no such location;
(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 jurisdiction in which, during the five years immediately preceding the application:
(a) the applicant or any of its officers or directors has been licensed or registered to provide debt-management services; or
(b) individuals have resided when they received debt-management services from the applicant;
(6) a statement describing, to the extent it is known or should be known by the applicant, any material civil or criminal judgment or litigation and any material administrative or enforcement action by a governmental agency in any jurisdiction against the applicant, any of its officers, directors, owners, or agents, or any person who 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 has not been in operation for the two years preceding the application, for the period of its existence;
(8) evidence of accreditation by an independent accrediting organization approved by the administrator;
(9) evidence that, within 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 or to be used in those programs;
(11) a description of the applicant's financial analysis and initial budget plan, including any form or electronic model, used 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 of each director during the 10 years immediately preceding 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 affiliate of the applicant; or

(b) any entity that provides products or services to the applicant or any 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 has not been in operation for the three years preceding the application, for the period of its existence;
(18) the identity of each director who is an affiliate, as defined in Subsection 13-42-102(2)(a) or (2)(b)(i), (ii), (iv), (v), (vi), or (vii), of the applicant; and
(19) any other information that the administrator reasonably requires to perform the administrator's duties under Section 13-42-109.

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13-42-107. Application for registration -- Obligation to update information. An applicant or registered provider shall notify the administrator within 10 days after a 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). 13-42-107. Application for registration -- Obligation to update information. An applicant or registered provider shall notify the administrator within 10 days after a 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).

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13-42-108. Application for registration -- Public information. Except for the information required by Subsections 13-42-106(7), (14), and (17) and the addresses required by Subsection 13-42-106(4), the administrator shall make the information in an application for registration as a provider available to the public. 13-42-108. Application for registration -- Public information. Except for the information required by Subsections 13-42-106(7), (14), and (17) and the addresses required by Subsection 13-42-106(4), the administrator shall make the information in an application for registration as a provider available to the public.

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13-42-109. Certification of registration -- Issuance or denial.(1) Except as otherwise provided in Subsections (2) and (3), the administrator 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 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 officers, directors, or owners has defaulted in the payment of money collected for others; or
(d) the administrator finds that the financial responsibility, experience, character, or general fitness of the applicant or its owners, directors, employees, or agents does not warrant belief that the business will be operated in compliance with this chapter.
(3) The administrator shall deny registration if:
(a) the application is not accompanied by the fee established by the administrator 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 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 Subsection 13-42-132(6), a board of directors is not independent for purposes of Subsection (3) if more than one-fourth of its members:
(a) are affiliates of the applicant, as defined in Subsection 13-42-102(2)(a) or 13-42-102(2)(b)(i), (ii), (iv), (v), (vi), or (vii); or
(b) after the date 10 years before first becoming a director of the applicant, were employed by or directors of a person that received from the applicant more than $25,000 in either the current year or the preceding year.
13-42-109. Certification of registration -- Issuance or denial.(1) Except as otherwise provided in Subsections (2) and (3), the administrator 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 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 officers, directors, or owners has defaulted in the payment of money collected for others; or
(d) the administrator finds that the financial responsibility, experience, character, or general fitness of the applicant or its owners, directors, employees, or agents does not warrant belief that the business will be operated in compliance with this chapter.
(3) The administrator shall deny registration if:
(a) the application is not accompanied by the fee established by the administrator 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 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 Subsection 13-42-132(6), a board of directors is not independent for purposes of Subsection (3) if more than one-fourth of its members:
(a) are affiliates of the applicant, as defined in Subsection 13-42-102(2)(a) or 13-42-102(2)(b)(i), (ii), (iv), (v), (vi), or (vii); or
(b) after the date 10 years before first becoming a director of the applicant, were employed by or directors of a person that received from the applicant more than $25,000 in either the current year or the preceding year.

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13-42-110. Certificate of registration -- Timing.(1) The administrator shall approve or deny an initial registration as a provider within 120 days after an application is filed. In connection with a request pursuant to Subsection 13-42-106(19) for additional information, the administrator may extend the 120-day period for not more than 60 days. Within seven days after denying an application, the administrator, in a record, shall inform the applicant of the reasons for the denial.
(2) If the administrator denies an application for registration as a provider or does not act on an application within the time prescribed in Subsection (1), the applicant may appeal and request a hearing pursuant to Title 63G, Chapter 4, Administrative Procedures Act.
(3) Subject to Subsection 13-42-111(4) and Section 13-42-134, a registration as a provider is valid for one year.
13-42-110. Certificate of registration -- Timing.(1) The administrator shall approve or deny an initial registration as a provider within 120 days after an application is filed. In connection with a request pursuant to Subsection 13-42-106(19) for additional information, the administrator may extend the 120-day period for not more than 60 days. Within seven days after denying an application, the administrator, in a record, shall inform the applicant of the reasons for the denial.
(2) If the administrator denies an application for registration as a provider or does not act on an application within the time prescribed in Subsection (1), the applicant may appeal and request a hearing pursuant to Title 63G, Chapter 4, Administrative Procedures Act.
(3) Subject to Subsection 13-42-111(4) and Section 13-42-134, a registration as a provider is valid for one year.

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§ 13-42-111. Renewal of registration (1) A provider must obtain a renewal of its registration annually.

(2) An application for renewal of registration as a provider must be in a form prescribed by the administrator, signed under penalty of perjury, and:

(a) be filed no fewer than 30 and no more than 60 days before the registration expires;

(b) be accompanied by the fee established by the administrator in accordance with Section 63J-1-303 and the bond required by Section 13-42-113;

(c) contain the matter required for initial registration as a provider by Subsections 13-42-106(8) and (9) and a financial statement, audited by an accountant licensed to conduct audits, for the applicant's fiscal year immediately preceding the application;

(d) disclose any changes in the information contained in the applicant's application for registration or its immediately previous application for renewal, as applicable;

(e) 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 the application:

(i) 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) issued by an insurance company authorized to do business in this state and rated at least A by a nationally recognized rating organization;

(iii) with no deductible;

(iv) payable to the applicant, the individuals who have agreements with the applicant, and this state, as their interests may appear; and

(v) not subject to cancellation by the applicant without the approval of the administrator;

(f) disclose the total amount of money received by the applicant pursuant to 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) disclose, to the best of the applicant's knowledge, the gross amount of money accumulated during the preceding 12 months pursuant to plans by or on behalf of individuals who reside in this state and with whom the applicant has agreements; and

(h) provide any other information that the administrator reasonably requires to perform the administrator'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 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, in a record, notifies the applicant of a denial and states the reasons for the denial.

(5) If the administrator denies an application for renewal of registration as a provider, the applicant, within 30 days after receiving notice of the denial, may appeal and request a hearing pursuant to Title 63G, Chapter 4, Administrative Procedures Act. 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 has agreements. If the denial is affirmed, subject to the administrator's order and Section 13-42-134, the applicant shall continue to provide debt-management services to individuals with whom it has agreements until, with the approval of the administrator, it transfers the agreements to another registered provider or returns to the individuals all unexpended money that is under the applicant's control.
13-42-111. Renewal of registration.(1) A provider shall obtain a renewal of its registration annually.
(2) An application for renewal of registration as a provider shall be in a form prescribed by the administrator, signed under penalty of perjury, and:
(a) be filed no fewer than 30 and no more than 60 days before the registration expires;
(b) be accompanied by the fee established by the administrator in accordance with Section 63J-1-504 and the bond required by Section 13-42-113;
(c) contain the matter required for initial registration as a provider by Subsections 13-42-106(8) and (9) and a financial statement, audited by an accountant licensed to conduct audits, for the applicant's fiscal year immediately preceding the application;
(d) disclose any changes in the information contained in the applicant's application for registration or its immediately previous application for renewal, as applicable;
(e) 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 the application:
(i) 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) 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;
(iii) with a deductible not exceeding $5,000;
(iv) payable for the benefit of the applicant, this state, and individuals who are residents of this state, as their 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;
(f) disclose the total amount of money received by the applicant pursuant to 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) disclose, to the best of the applicant's knowledge, the gross amount of money accumulated during the preceding 12 months pursuant to plans by or on behalf of individuals who reside in this state and with whom the applicant has agreements; and
(h) provide any other information that the administrator reasonably requires to perform the administrator'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 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, in a record, notifies the applicant of a denial and states the reasons for the denial.
(5) If the administrator denies an application for renewal of registration as a provider, the applicant, within 30 days after receiving notice of the denial, may appeal and request a hearing pursuant to Title 63G, Chapter 4, Administrative Procedures Act. 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 has agreements. If the denial is affirmed, subject to the administrator's order and Section 13-42-134, the applicant shall continue to provide debt-management services

to individuals with whom it has agreements until, with the approval of the administrator, it 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 may waive or reduce the insurance requirement in Subsection (2)(e) if the provider does not:
(i) maintain control of a trust account or receive money paid by an individual pursuant to 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 under Subsection (6)(a) shall balance the reduction in risk posed by a provider meeting the stated requirements against any continued need for insurance against employee and director dishonesty.

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13-42-112. Registration in another state -- Rulemaking.(1) (a) Subject to rules made by the administrator, if a provider holds a license or certificate of registration in another state authorizing it to provide debt-management services, the provider may submit a copy of that license or certificate and the application for it instead of an application in the form prescribed by Subsection 13-42-105(1), Section 13-42-106, or Subsection 13-42-111(2).
(b) The administrator 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 13-42-106(1), (3), (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, 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 to the administrator in compliance with this section.
13-42-112. Registration in another state -- Rulemaking.(1) (a) Subject to rules made by the administrator, if a provider holds a license or certificate of registration in another state authorizing it to provide debt-management services, the provider may submit a copy of that license or certificate and the application for it instead of an application in the form prescribed by Subsection 13-42-105(1), Section 13-42-106, or Subsection 13-42-111(2).
(b) The administrator 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 13-42-106(1), (3), (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, 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 to the administrator in compliance with this section.

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§ 13-42-113. 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, which must:

(a) be in effect during the period of registration and for two years after 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 agree to receive debt-management services from the provider, as their interests may appear.

(2) Subject to adjustment of the dollar amount pursuant to Subsection 13-42-132(6), a surety bond filed pursuant to Subsection (1) must:

(a) be in the amount of $ 100,000;

(b) be issued by a bonding, surety, or insurance company authorized to do business in this state and rated at least A by a nationally recognized rating organization; and

(c) have payment conditioned upon noncompliance of the provider or its agent with this chapter.

(3) 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 and, within 30 days after notice by the administrator, file a new or additional surety bond in an amount to comply with the $ 100,000 requirement. 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 or an individual may obtain satisfaction out of the surety bond procured pursuant to this section if:

(a) the administrator 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 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, on the initiative of the administrator 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 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, pro rata; and

(d) if a final order or judgment is issued under Subsection 13-42-133(1), to the expenses charged pursuant to Subsection 13-42-132(2)(a).
13-42-113. 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, which shall:
(a) be in effect during the period of registration and for two years after 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 agree to receive debt-management services from the provider, as their interests may appear.
(2) Subject to adjustment of the dollar amount pursuant to Subsection 13-42-132(6), a surety bond filed pursuant to Subsection (1) shall:
(a) be in the amount of $100,000;
(b) be issued by a bonding, surety, or insurance company authorized to do business in this state and rated at least A by a nationally recognized rating organization; and
(c) have payment conditioned upon noncompliance of the provider or its agent with this chapter.
(3) 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 and, within 30 days after notice by the administrator, file a new or additional surety bond in an amount to comply with the $100,000 requirement. 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 or an individual may obtain satisfaction out of the surety bond procured pursuant to this section if:
(a) the administrator 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 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, on the initiative of the administrator 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 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, pro rata; and
(d) if a final order or judgment is issued under Subsection 13-42-133(1), to the expenses charged pursuant to Subsection 13-42-132(2)(a).

.

13-42-114. Bond required -- Substitute.(1) Instead of the surety bond required by Section 13-42-113, a provider may deliver to the administrator, in the amount required by Subsection 13-42-113(2), and, except as otherwise provided in Subsection (1)(c)(i), payable or available to this state and to individuals who reside in this state when they agree to receive debt-management services from the provider, as their interests may appear, if the provider or its agent does not comply with this chapter:
(a) a certificate of insurance:
(i) 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; and
(ii) with no deductible, or if the provider supplies a bond in the amount of $5,000, a deductible not exceeding $5,000;
(b) a certificate of deposit issued or confirmed by a bank approved by the administrator, payable upon presentation of a certificate by the administrator stating that the provider or its agent has not complied with this chapter; or
(c) with the approval of the administrator:
(i) an irrevocable letter of credit, issued or confirmed by a bank approved by the administrator, payable upon presentation of a certificate by the administrator stating that the provider or its agent has not complied with this chapter; or
(ii) 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 deposited and maintained with a bank approved by the administrator for this purpose.
(2) If a provider furnishes a substitute pursuant to Subsection (1), the provisions of Subsections 13-42-113(1), (3), (4), and (5) apply to the substitute.
13-42-114. Bond required -- Substitute.(1) Instead of the surety bond required by Section 13-42-113, a provider may deliver to the administrator, in the amount required by Subsection 13-42-113(2), and, except as otherwise provided in Subsection (1)(c)(i), payable or available to this state and to individuals who reside in this state when they agree to receive debt-management services from the provider, as their interests may appear, if the provider or its agent does not comply with this chapter:
(a) a certificate of insurance:
(i) 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; and
(ii) with no deductible, or if the provider supplies a bond in the amount of $5,000, a deductible not exceeding $5,000;
(b) a certificate of deposit issued or confirmed by a bank approved by the administrator, payable upon presentation of a certificate by the administrator stating that the provider or its agent has not complied with this chapter; or
(c) with the approval of the administrator:
(i) an irrevocable letter of credit, issued or confirmed by a bank approved by the administrator, payable upon presentation of a certificate by the administrator stating that the provider or its agent has not complied with this chapter; or
(ii) 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 deposited and maintained with a bank approved by the administrator for this purpose.
(2) If a provider furnishes a substitute pursuant to Subsection (1), the provisions of Subsections 13-42-113(1), (3), (4), and (5) apply to the substitute.

.

13-42-115. Requirement of good faith. A provider shall act in good faith in all matters under this chapter. 13-42-115. Requirement of good faith. A provider shall act in good faith in all matters under this chapter.

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13-42-116. Customer service.A provider that is required to be registered under this chapter shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified counselor or customer service representative, as appropriate, during ordinary business hours. 13-42-116. Customer service.A provider that is required to be registered under this chapter shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified counselor or customer service representative, as appropriate, during ordinary business hours.

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§ 13-42-117. Prerequisites for providing debt-management services(1) Before providing debt-management services, a registered provider shall give the individual an itemized list of goods and services and the charges for each. The list must be clear and conspicuous, be in a record the individual may keep whether or not the individual assents to an agreement, and describe the goods and services the provider offers:

(a) free of additional charge if the individual enters into an agreement;

(b) for a charge if the individual does not enter into an agreement; and

(c) for a charge if the individual enters into an agreement, using the following terminology, as applicable, and format:
Set-up fee
dollar amount of fee




Monthly service fee
dollar amount of fee or method of
determining amount




Settlement fee
dollar amount of fee or method of
determining amount




Goods and services in addition to those provided in connection
with a plan:





(item) dollar amount or method of determining amount





(item) dollar amount or method of determining amount.





(2) A provider may not furnish debt-management services unless the provider, through the services of a certified counselor:

(a) provides the individual with reasonable education about the management of personal finance;

(b) has prepared a financial analysis; and

(c) if the individual is to make regular, periodic payments:

(i) has prepared a plan for the individual;

(ii) has made a determination, based on the provider's analysis of the information provided by the individual and otherwise available to it, that the plan is suitable for the individual and the individual will be able to meet the payment obligations under the plan; and

(iii) believes that each creditor of the individual listed as a participating creditor in the plan will accept payment of the individual's debts as provided in the plan.

(3) Before an individual assents to an agreement to engage in a plan, a provider shall:

(a) provide the individual with a copy of the analysis and plan required by Subsection (2) in a record that identifies the provider and that the individual may keep whether or not the individual assents to the agreement;

(b) inform the individual of the availability, at the individual's option, of assistance by a toll-free communication system or in person to discuss the financial analysis and plan required by Subsection (2); and

(c) with respect to all creditors identified by the individual or otherwise known by the provider to be creditors of the individual, provide the individual with a list of:

(i) creditors that the provider expects to participate in the plan and grant concessions;

(ii) creditors that the provider expects to participate in the plan but not grant concessions;

(iii) creditors that the provider expects not to participate in the plan; and

(iv) all other creditors.

(4) Before an individual assents to an agreement to engage in a plan, the provider shall inform the individual, in a record that contains nothing else, that is given separately, and that the individual may keep whether or not the individual assents to the agreement:

(a) of the name and business address of the provider;

(b) that plans are not suitable for all individuals and the individual may ask the provider about other ways, including bankruptcy, to deal with indebtedness;

(c) that establishment of a plan may adversely affect the individual's credit rating or credit scores;

(d) that nonpayment of debt may lead creditors to increase finance and other charges or undertake collection activity, including litigation;

(e) unless it is not true, that the provider may receive compensation from the creditors of the individual; and

(f) that, unless the individual is insolvent, if a creditor settles for less than the full amount of the debt, the plan may result in the creation of taxable income to the individual, even though the individual does not receive any money.

(5) If a provider may receive payments from an individual's creditors and the plan contemplates that the individual's creditors will reduce finance charges or fees for late payment, default, or delinquency, the provider may comply with Subsection (4) by providing the following disclosure, surrounded by black lines:





IMPORTANT INFORMATION FOR YOU TO CONSIDER

(1) Debt-management plans are not right for all individuals, and you may
ask us to provide information about other ways, including bankruptcy, to
deal with your debts.
(2) Using a debt-management plan may hurt your credit rating or credit
scores.
(3) We may receive compensation for our services from your creditors.





Name and business address of provider





(6) If a provider will not receive payments from an individual's creditors and the plan contemplates that the individual's creditors will reduce finance charges or fees for late payment, default, or delinquency, a provider may comply with Subsection (4) by providing the following disclosure, surrounded by black lines:

IMPORTANT INFORMATION FOR YOU TO CONSIDER

(1) Debt-management plans are not right for all individuals, and you may
ask us to provide information about other ways, including bankruptcy, to
deal with your debts.
(2) Using a debt-management plan may hurt your credit rating or credit
scores.





Name and business address of provider





(7) If a plan contemplates that creditors will settle debts for less than the full principal amount of debt owed, a provider may comply with Subsection (4) by providing the following disclosure, surrounded by black lines:



IMPORTANT INFORMATION FOR YOU TO CONSIDER

(1) Our program is not right for all individuals, and you may ask us to provide information about bankruptcy and other ways to deal with your debts.
(2) Nonpayment of your debts under our program may hurt your credit rating or credit scores;
lead your creditors to increase finance and other charges; and
lead your creditors to undertake activity, including lawsuits, to collect the debts.
(3) Reduction of debt under our program may result in taxable income to you, even though you will not actually receive any money.


Name and business address of provider
13-42-117. Prerequisites for providing debt-management services.(1) Before providing debt-management services, a registered provider shall give the individual an itemized list of goods and services and the charges for each. The list shall be clear and conspicuous, be in a record the individual may keep whether or not the individual assents to an agreement, and describe the goods and services the provider offers:
(a) free of additional charge if the individual enters into an agreement;
(b) for a charge if the individual does not enter into an agreement; and
(c) for a charge if the individual enters into an agreement, using the following terminology, as applicable, and format:
Set-up fee _________________________________________________
dollar amount of fee
Monthly service fee __________________________________________
dollar amount of fee or method of determining amount
Settlement fee ______________________________________________
dollar amount of fee or method of determining amount
Goods and services in addition to those provided in connection with a plan:
_____________ ____________________________________________
(item) dollar amount or method of determining amount
_____________ ____________________________________________
(item) dollar amount or method of determining amount.
(2) A provider may not furnish debt-management services unless the provider, through the services of a certified counselor:
(a) provides the individual with reasonable education about the management of personal finance;
(b) has prepared a financial analysis; and
(c) if the individual is to make regular, periodic payments to a creditor or a provider:
(i) has prepared a plan for the individual;
(ii) has made a determination, based on the provider's analysis of the information provided by the individual and otherwise available to it, that the plan is suitable for the individual and the individual will be able to meet the payment obligations under the plan; and
(iii) believes that each creditor of the individual listed as a participating creditor in the plan will accept payment of the individual's debts as provided in the plan.
(3) Before an individual assents to an agreement to engage in a plan, a provider shall:
(a) provide the individual with a copy of the analysis and plan required by Subsection (2) in a record that identifies the provider and that the individual may keep whether or not the individual assents to the agreement;
(b) inform the individual of the availability, at the individual's option, of assistance by a toll-free communication system or in person to discuss the financial analysis and plan required by Subsection (2); and
(c) with respect to all creditors identified by the individual or otherwise known by the provider to be creditors of the individual, provide the individual with a list of:
(i) creditors that the provider expects to participate in the plan and grant concessions;
(ii) creditors that the provider expects to participate in the plan but not grant concessions;
(iii) creditors that the provider expects not to participate in the plan; and
(iv) all other creditors.

(4) Before an individual assents to an agreement, the provider shall inform the individual, in a record that contains nothing else, that is given separately, and that the individual may keep whether or not the individual assents to the agreement:
(a) of the name and business address of the provider;
(b) that plans are not suitable for all individuals and the individual may ask the provider about other ways, including bankruptcy, to deal with indebtedness;
(c) that establishment of a plan may adversely affect the individual's credit rating or credit scores;
(d) that nonpayment of debt may lead creditors to increase finance and other charges or undertake collection activity, including litigation;
(e) unless it is not true, that the provider may receive compensation from the creditors of the individual; and
(f) that, unless the individual is insolvent, if a creditor settles for less than the full amount of the debt, the plan may result in the creation of taxable income to the individual, even though the individual does not receive any money.
(5) If a provider may receive payments from an individual's creditors and the plan contemplates that the individual's creditors will reduce finance charges or fees for late payment, default, or delinquency, the provider may comply with Subsection (4) by providing the following disclosure, surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER

(1) Debt-management plans are not right for all individuals, and you may ask us to provide information about other ways, including bankruptcy, to deal with your debts.
(2) Using a debt-management plan may make it harder for you to obtain credit.
(3) We may receive compensation for our services from your creditors.
_______________________________________

Name and business address of provider

(6) If a provider will not receive payments from an individual's creditors and the plan contemplates that the individual's creditors will reduce finance charges or fees for late payment, default, or delinquency, a provider may comply with Subsection (4) by providing the following disclosure, surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER

(1) Debt-management plans are not right for all individuals, and you may ask us to provide information about other ways, including bankruptcy, to deal with your debts.
(2) Using a debt-management plan may make it harder for you to obtain credit.
______________________________________

Name and business address of provider

(7) If an agreement contemplates that creditors will settle debts for less than the full principal amount of debt owed, a provider may comply with Subsection (4) by providing the following disclosure, surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER

(1) Our program is not right for all individuals, and you may ask us to provide information about bankruptcy and other ways to deal with your debts.
(2) Nonpayment of your debts under our program may
hurt your credit rating or credit scores;
lead your creditors to increase finance and other charges; and

lead your creditors to undertake activity, including lawsuits, to collect the debts.
(3) Reduction of debt under our program may result in taxable income to you, even though you will not actually receive any money.
_________________________________________

Name and business address of provider

.

13-42-118. Communication by electronic or other means.(1) 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 7001 et seq.

(2) A provider may satisfy the requirements of Section 13-42-117, 13-42-119, or 13-42-127 by means of the Internet or other electronic means if the provider obtains a consumer's consent in the manner provided by Section 101(c)(1) of the federal act.

(3) 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 website, the disclosure of the information required by Subsection 13-42-117(4) must appear on one or more screens that:

(a) contain no other information; and

(b) the individual must see before proceeding to assent to formation of a plan.

(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 upon electronic, telephonic, or written request, it will send the individual a written copy of the materials, and shall comply with a request as provided in Subsection (6).

(6) If a provider is requested, before the expiration of 90 days after a plan is completed or terminated, to send 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 at no charge within three business days after the request, but the provider need not comply with a request more than once per calendar month or if it reasonably believes the request is made for purposes of harassment. If a request is made more than 90 days after a plan 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 website shall disclose on the home page of its website or on a page that is clearly and conspicuously connected to the home page by a link that clearly reveals its contents:

(a) its name and all names under which it does business;

(b) its principal business address, telephone number, and electronic-mail address, if any; and

(c) the names of its principal officers.

(8) Subject to Subsection (9), if a consumer who has consented 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 agreement with the consumer.

(9) If a provider wishes to terminate an agreement with a consumer pursuant to Subsection (8), it shall notify the consumer that it will terminate the agreement unless the consumer, within 30 days after receiving the notification, consents to electronic communication in the manner provided in Section 101(c) of the federal act. If the consumer consents, the provider may terminate the agreement only as permitted by Subsection 13-42-119(1)(f)(vii).
13-42-118. Communication by electronic or other means.(1) 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 7001 et seq.
(2) A provider may satisfy the requirements of Section 13-42-117, 13-42-119, or 13-42-127 by means of the Internet or other electronic means if the provider obtains a consumer's consent in the manner provided by Section 101(c)(1) of the federal act.
(3) 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 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 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 upon electronic, telephonic, or written request, it will send the individual a written copy of the materials, and shall comply with a request as provided in Subsection (6).
(6) If a provider is requested, before the expiration of 90 days after an agreement is completed or terminated, to send 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 at no charge within three business days after the request, but the provider need not comply with a request more than once per calendar month or if it reasonably believes the request is made for purposes of harassment. If a request is made more than 90 days after 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 website shall disclose on the home page of its website or on a page that is clearly and conspicuously connected to the home page by a link that clearly reveals its contents:
(a) its name and all names under which it does business;
(b) its principal business address, telephone number, and electronic-mail address, if any; and
(c) the names of its principal officers.
(8) Subject to Subsection (9), if a consumer who has consented 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 agreement with the consumer.
(9) If a provider wishes to terminate an agreement with a consumer pursuant to Subsection (8), it shall notify the consumer that it will terminate the agreement unless the consumer, within 30 days after receiving the notification, consents to electronic communication in the manner provided in Section 101(c) of the federal act. If the consumer consents, the provider may terminate the agreement only as permitted by Subsection 13-42-119(1)(f)(vii).

.

§ 13-42-119. Form and contents of agreement
(1) An agreement must:

(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;

(ii) the amount, or method of determining the amount, of all fees, individually itemized, to be paid by the individual;

(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 payment will be made, the amount owed to each creditor, and any concessions the provider reasonably believes each creditor will offer; and

(B) the schedule of expected payments to each creditor, including the amount of each payment and the date on which it will be made;

(v) each creditor that the provider believes will not participate in the plan and to which the provider will not direct payment;

(vi) how the provider will comply with its obligations under Subsection 13-42-127(1);

(vii) that the provider may terminate the agreement for good cause, upon return of unexpended money of the individual;

(viii) that the individual may cancel the agreement as provided in Section 13-42-120;

(ix) that the individual may contact the administrator with any questions or complaints regarding the provider; and

(x) the address, telephone number, and Internet address or website of the administrator.

(2) For purposes of Subsection (1)(e), delivery of an electronic record occurs when it is made available in a format in which the individual may retrieve, save, and print it and the individual is notified that it is available.

(3) If the administrator supplies the provider with any information required under Subsection (1)(f)(x), the provider may comply with that requirement only by disclosing the information supplied by the administrator.

(4) An agreement must provide that:

(a) the individual has a right to terminate the agreement at any time, without penalty or obligation, by giving the provider written or electronic notice, in which event:

(i) the provider will refund all unexpended money that the provider or its agent has received from or on behalf of the individual for the reduction or satisfaction of the individual's debt;

(ii) with respect to an agreement that contemplates that creditors will settle debts for less than the principal amount of debt, the provider will refund 65% of any portion of the set-up fee that has not been credited against the settlement fee; and

(iii) all powers of attorney granted by the individual to the provider are revoked and ineffective;

(b) the individual authorizes any bank in which the provider or its agent has established a trust account to disclose to the administrator any financial records relating to the trust account; and

(c) the provider will notify the individual within five days after learning of a creditor's decision to reject or withdraw from a plan and that this 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 confer on a provider a power of attorney to settle the individual's debt for no more than 50% of the principal amount of the debt. An agreement may not confer a power of attorney to settle a debt for more than 50% of that amount, but may confer a power of attorney to negotiate with creditors of the individual on behalf of the individual. An agreement must provide that the provider will obtain the assent of the individual after a creditor has assented to a settlement for more than 50% of the principal amount of the debt.

(6) An agreement may not:

(a) provide for application of the law of any 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 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 person for not performing the agreement or for violating this chapter; or

(ii) indemnifies any person for liability arising under the agreement or this chapter.

(7) All rights and obligations specified in Subsection (4) and Section 13-42-120 exist even if not provided in the agreement. A provision in an agreement which violates Subsection (4), (5), or (6) is void.
13-42-119. Form and contents of agreement.(1) An agreement shall:
(a) be in a record;
(b) be dated and signed by the provider and the individual;
(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;
(ii) the amount, or method of determining the amount, of all fees, individually itemized, to be paid by the individual;
(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 payment will be made, the amount owed to each creditor, and any concessions the provider reasonably believes each creditor will offer; and
(B) the schedule of expected payments to each creditor, including the amount of each payment and the date on which it will be made;
(v) each creditor that the provider believes will not participate in the plan and to which the provider will not direct payment;
(vi) how the provider will comply with its obligations under Subsection 13-42-127(1);
(vii) that the provider may terminate the agreement for good cause, upon return of unexpended money of the individual;
(viii) that the individual may cancel the agreement as provided in Section 13-42-120;
(ix) that the individual may contact the administrator with any questions or complaints regarding the provider; and
(x) the address, telephone number, and Internet address or website of the administrator.
(2) For purposes of Subsection (1)(e), delivery of an electronic record occurs when it is made available in a format in which the individual may retrieve, save, and print it and the individual is notified that it is available.
(3) If the administrator supplies the provider with any information required under Subsection (1)(f)(x), the provider may comply with that requirement only by disclosing the information supplied by the administrator.
(4) An agreement shall provide that:
(a) the individual has a right to terminate the agreement at any time, without penalty or obligation, by giving the provider written or electronic notice, in which event:
(i) the provider will refund all unexpended money that the provider or its agent has received from or on behalf of the individual for the reduction or satisfaction of the individual's debt;
(ii) with respect to an agreement that contemplates that creditors will settle debts for less than the principal amount of debt, the provider will refund 65% of any portion of the set-up fee that has not been credited against the settlement fee; and
(iii) all powers of attorney granted by the individual to the provider are revoked and ineffective;

(b) the individual authorizes any bank in which the provider or its agent has established a trust account to disclose to the administrator any financial records relating to the trust account; and
(c) the provider will notify the individual within five days after learning of a creditor's final decision to reject or withdraw from a plan and that this 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 confer on a provider a power of attorney to settle the individual's debt for no more than 50% of the principal amount of the debt. An agreement may not confer a power of attorney to settle a debt for more than 50% of that amount, but may confer a power of attorney to negotiate with creditors of the individual on behalf of the individual. An agreement shall provide that the provider will obtain the assent of the individual after a creditor has assented to a settlement for more than 50% of the principal amount of the debt.
(6) An agreement may not:
(a) provide for application of the law of any 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 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 person for not performing the agreement or for violating this chapter; or
(ii) indemnifies any person for liability arising under the agreement or this chapter.
(7) All rights and obligations specified in Subsection (4) and Section 13-42-120 exist even if not provided in the agreement. A provision in an agreement which violates Subsection (4), (5), or (6) is void.

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§ 13-42-120. Cancellation of agreement -- Waiver (1) An individual may cancel an agreement before midnight of the third business day after the individual assents to it, unless the agreement does not comply with Subsection (2) or Section 13-42-119 or Section 13-42-128, in which event the individual may cancel the agreement within 30 days after the individual assents to it. To exercise the right to cancel, the individual must give notice in a record to the provider. Notice by mail is given when mailed.

(2) An agreement must be accompanied by a form that contains in bold-face type, surrounded by bold black lines:

Notice of Right to Cancel

You may cancel this agreement, without any penalty or obligation, at any
time before midnight of the third business day that begins the day after
you agree to it by electronic communication or by signing it.
To cancel this agreement during this period, send an e-mail to

E-mail address of provider
or mail or deliver a signed, dated copy of this notice, or any other
written notice to
Name of provider
at before midnight on .
Address of provider Date




If you cancel this agreement within the 3-day period, we will refund all
money you already have paid us.
You also may terminate this agreement at any later time, but we are not
required to refund fees you have paid us.
I cancel this agreement,





Print your name





Signature





Date





(3) If a personal financial emergency necessitates the disbursement of an individual's money to one or more of the individual's creditors before the expiration of three days after an agreement is signed, an individual may waive the right to cancel. To waive the right, the individual must send or deliver a signed, dated statement in the individual's own words describing the circumstances that necessitate a waiver. The waiver must explicitly waive the right to cancel. A waiver by means of a standard form record is void.
13-42-120. Cancellation of agreement -- Waiver.(1) An individual may cancel an agreement before midnight of the third business day after the individual assents to it, unless the agreement does not comply with Subsection (2) or Section 13-42-119 or Section 13-42-128, in which event the individual may cancel the agreement within 30 days after the individual assents to it. To exercise the right to cancel, the individual shall give notice in a record to the provider. Notice by mail is given when mailed.
(2) An agreement shall be accompanied by a form that contains in bold-face type, surrounded by bold black lines:
Notice of Right to Cancel

You may cancel this agreement, without any penalty or obligation, at any time before midnight of the third business day that begins the day after you agree to it by electronic communication or by signing it.
To cancel this agreement during this period, send an e-mail to
____________________________ or mail or deliver a signed, dated copy of this
E-mail address of provider
notice, or any other written notice to ___________________________________
Name of provider
at _______________________________ before midnight on ___________________.
Address of provider Date
If you cancel this agreement within the 3-day period, we will refund all money you already have paid us.
You also may terminate this agreement at any later time, but we may not be required to refund fees you have paid us.
I cancel this agreement,
__________________________________
Print your name
__________________________________
Signature
__________________________________
Date
(3) If a personal financial emergency necessitates the disbursement of an individual's money to one or more of the individual's creditors before the expiration of three days after an agreement is signed, an individual may waive the right to cancel. To waive the right, the individual shall send or deliver a signed, dated statement in the individual's own words describing the circumstances that necessitate a waiver. The waiver shall explicitly waive the right to cancel. A waiver by means of a standard form record is void.

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§ 13-42-121. Required language Unless the administrator, by rule, provides otherwise, the disclosures and documents required by this chapter must be in English. If a provider communicates with an individual primarily in a language other than English, the provider must furnish a translation into the other language of the disclosures and documents required by this chapter. 13-42-121. Required language. Unless the administrator, by rule, provides otherwise, the disclosures and documents required by this chapter shall be in English. If a provider communicates with an individual primarily in a language other than English, the provider shall furnish a translation into the other language of the disclosures and documents required by this chapter.

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§ 13-42-122. Trust account(1) All money paid to a provider by or on behalf of an individual pursuant to a plan for distribution to creditors is held in trust. Within two business days after receipt, the provider shall deposit the money in a trust account established for the benefit of individuals to whom the provider is furnishing debt-management services.

(2) Money held in trust by a provider is not property of the provider or its designee. 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 money has not been disbursed to creditors of the individual.

(3) A provider shall:

(a) maintain separate records of account for each individual to whom the provider is furnishing 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 must comply with the due dates established by each creditor; and

(c) promptly correct any payments that are not made or that are misdirected 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.

(4) A provider may not commingle money in a trust account established for the benefit of individuals to whom the provider is furnishing debt-management services with money of other persons.

(5) A trust account must at all times have a cash balance equal to the sum of the balances of each individual's account.

(6) If a provider has established a trust account pursuant to Subsection (1), the provider shall reconcile the trust account at least once a month. The reconciliation must compare the cash balance in the trust account with the sum of the balances in each individual's account. If the provider or its designee has more than one trust account, each trust account must be individually reconciled.

(7) 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 by a method approved by the administrator. Unless the administrator by rule provides otherwise, within five days thereafter, the provider shall give notice to the administrator describing the remedial action taken or to be taken.

(8) If an individual terminates an agreement or it becomes reasonably apparent to a provider 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 paid to creditors, less fees that are payable to the provider under Section 13-42-123.

(9) Before relocating a trust account from one bank to another, a provider shall inform the administrator of the name, business address, and telephone number of the new bank. As soon as practicable, the provider shall inform the administrator of the account number of the trust account at the new bank.
13-42-122. Trust account.(1) All money paid to a provider by or on behalf of an individual for distribution to creditors pursuant to a plan is held in trust. Within two business days after receipt, the provider shall deposit the money in a trust account established for the benefit of individuals to whom the provider is furnishing debt-management services.
(2) Money held in trust by a provider is not property of the provider or its designee. 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 money has not been disbursed to creditors of the individual.
(3) A provider shall:
(a) maintain separate records of account for each individual to whom the provider is furnishing 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 that are not made or that are misdirected 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.
(4) A provider may not commingle money in a trust account established for the benefit of individuals to whom the provider is furnishing debt-management services with money of other persons.
(5) A trust account shall at all times have a cash balance equal to the sum of the balances of each individual's account.
(6) If a provider has established a trust account pursuant to Subsection (1), the provider shall reconcile the trust account at least once a month. The reconciliation shall compare the cash balance in the trust account with the sum of the balances in each individual's account. If the provider or its designee has more than one trust account, each trust account shall be individually reconciled.
(7) 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 by a method approved by the administrator. Unless the administrator by rule provides otherwise, within five days thereafter, the provider shall give notice to the administrator describing the remedial action taken or to be taken.
(8) If an individual terminates an agreement or it becomes reasonably apparent to a provider 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 paid to creditors, less fees that are payable to the provider under Section 13-42-123.
(9) Before relocating a trust account from one bank to another, a provider shall inform the administrator of the name, business address, and telephone number of the new bank. As soon as practicable, the provider shall inform the administrator of the account number of the trust account at the new bank.

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13-42-123. Fees and other charges.(1) A provider may not impose directly or indirectly a fee or other charge on an individual or receive money from or on behalf of an individual for debt-management services except as permitted by this section.
(2) A provider may not impose charges or receive payment for debt-management services until the provider and the individual have signed an agreement that complies with Sections 13-42-119 and 13-42-128.
(3) If an individual assents to an agreement, a provider may not impose a fee or other charge for educational or counseling services, or the like, except as otherwise provided in this Subsection (3) and Subsection 13-42-128(4). The administrator may authorize a provider to charge a fee based on the nature and extent of the educational or counseling services furnished by the provider.
(4) Subject to adjustment of dollar amounts pursuant to Subsection 13-42-132(6), the following rules apply:
(a) If an individual assents to a plan that contemplates that creditors 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; 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.
(b) 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 charge:
(i) subject to Subsection 13-42-119(4), a fee for consultation, obtaining a credit report, setting up an account, and the like, in an amount not exceeding the lesser of $400 and 4% of the debt in the plan at the inception of the plan; 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) A provider may not impose or receive fees under both Subsections (4)(a) and (b).
(d) 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 provides to the individual a fee not exceeding $100 or, with the approval of the administrator, a larger fee. The administrator may approve a fee larger than $100 if the nature and extent of the educational and counseling services warrant the larger fee.
(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 fee paid pursuant to Subsection (4)(d).
(6) (a) 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, compensation for services in connection with settling a debt may not exceed one of the following applicable settlement fee limits in Subsection (6)(b) or (c), the terms of which shall be clearly disclosed in the agreement.
(b) (i) With respect to agreements where a flat settlement fee is charged based on the overall amount of included debt, total aggregate fees charged may not exceed 17% of the principal amount of debt included in the agreement, including any fees charged under Subsections (4)(b)(i) and (ii).

(ii) The flat settlement fee authorized under this Subsection (6)(b) shall be assessed in equal monthly payments over no less than half of the length of the plan, as estimated at the plan's inception, unless:
(A) payment is voluntarily accelerated by the individual in a separate record; and
(B) at least half of the principal amount of overall debt included in the agreement at its inception has been settled.
(c) (i) With respect to agreements where fees are calculated as a percentage of the amount saved by an individual, a settlement fee may not exceed 30% of the excess of the outstanding amount of each debt over the amount actually paid to the creditor, as calculated at the time of settlement.
(ii) Settlement fees authorized under this Subsection (6)(c):
(A) may be collected only as debts are settled; and
(B) the total aggregate amount of fees charged to any individual under this chapter, including fees charged under Subsections (4)(b)(i) and (ii), may not exceed 20% of the principal amount of debt included in the agreement at the agreement's inception.
(d) A provider may not impose or receive fees under both Subsections (6)(b) and (c).
(7) Subject to adjustment of the dollar amount pursuant to Subsection 13-42-132(6), if a payment to a provider by an individual under this chapter is dishonored, a provider may impose a reasonable charge on the individual, not to exceed the lesser of $25 and the amount permitted by law other than this chapter.
13-42-123. Fees and other charges.(1) A provider may not impose directly or indirectly a fee or other charge on an individual or receive money from or on behalf of an individual for debt-management services except as permitted by this section.
(2) A provider may not impose charges or receive payment for debt-management services until the provider and the individual have signed an agreement that complies with Sections 13-42-119 and 13-42-128.
(3) If an individual assents to an agreement, a provider may not impose a fee or other charge for educational or counseling services, or the like, except as otherwise provided in this Subsection (3) and Subsection 13-42-128(4). The administrator may authorize a provider to charge a fee based on the nature and extent of the educational or counseling services furnished by the provider.
(4) Subject to adjustment of dollar amounts pursuant to Subsection 13-42-132(6), the following rules apply:
(a) If an individual assents to a plan that contemplates that creditors 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; 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.
(b) 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 charge:
(i) subject to Subsection 13-42-119(4), a fee for consultation, obtaining a credit report, setting up an account, and the like, in an amount not exceeding the lesser of $400 and 4% of the debt in the plan at the inception of the plan; 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) A provider may not impose or receive fees under both Subsections (4)(a) and (b).
(d) 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 provides to the individual a fee not exceeding $100 or, with the approval of the administrator, a larger fee. The administrator may approve a fee larger than $100 if the nature and extent of the educational and counseling services warrant the larger fee.
(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 fee paid pursuant to Subsection (4)(d).
(6) (a) 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, compensation for services in connection with settling a debt may not exceed one of the following applicable settlement fee limits in Subsection (6)(b) or (c), the terms of which shall be clearly disclosed in the agreement.
(b) (i) With respect to agreements where a flat settlement fee is charged based on the overall amount of included debt, total aggregate fees charged may not exceed 17% of the principal amount of debt included in the agreement, including any fees charged under Subsections (4)(b)(i) and (ii).

(ii) The flat settlement fee authorized under this Subsection (6)(b) shall be assessed in equal monthly payments over no less than half of the length of the plan, as estimated at the plan's inception, unless:
(A) payment is voluntarily accelerated by the individual in a separate record; and
(B) at least half of the principal amount of overall debt included in the agreement at its inception has been settled.
(c) (i) With respect to agreements where fees are calculated as a percentage of the amount saved by an individual, a settlement fee may not exceed 30% of the excess of the outstanding amount of each debt over the amount actually paid to the creditor, as calculated at the time of settlement.
(ii) Settlement fees authorized under this Subsection (6)(c):
(A) may be collected only as debts are settled; and
(B) the total aggregate amount of fees charged to any individual under this chapter, including fees charged under Subsections (4)(b)(i) and (ii), may not exceed 20% of the principal amount of debt included in the agreement at the agreement's inception.
(d) A provider may not impose or receive fees under both Subsections (6)(b) and (c).
(7) Subject to adjustment of the dollar amount pursuant to 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.

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13-42-124. Voluntary contributions. A provider may not solicit a voluntary contribution from an individual or an affiliate of the individual for any service provided to the individual. A provider may accept voluntary contributions from an individual but, until 30 days after completion or termination of a plan, the aggregate amount of money received from or on behalf of the individual may not exceed the total amount the provider may charge the individual under Section 13-42-123. 13-42-124. Voluntary contributions. A provider may not solicit a voluntary contribution from an individual or an affiliate of the individual for any service provided to the individual. A provider may accept voluntary contributions from an individual but, until 30 days after completion or termination of a plan, the aggregate amount of money received from or on behalf of the individual may not exceed the total amount the provider may charge the individual under Section 13-42-123.

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13-42-125. Voidable agreements.1) If a provider imposes a fee or other charge or receives money or other payments not authorized by Section 13-42-123 or 13-42-124, the individual may void the agreement and recover as provided in Section 13-42-135.
(2) If a provider is not registered as required by this chapter when an individual assents to an agreement, the agreement is voidable by the individual.
(3) If an individual voids an agreement under Subsection (2), the provider does not have a claim against the individual for breach of contract or for restitution.
13-42-125. Voidable agreements.1) If a provider imposes a fee or other charge or receives money or other payments not authorized by Section 13-42-123 or 13-42-124, the individual may void the agreement and recover as provided in Section 13-42-135.
(2) If a provider is not registered as required by this chapter when an individual assents to an agreement, the agreement is voidable by the individual.
(3) If an individual voids an agreement under Subsection (2), the provider does not have a claim against the individual for breach of contract or for restitution.

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13-42-126. Termination of agreements.(1) If an individual who has entered into an agreement fails for 60 days to make payments required by the agreement, a provider may terminate the agreement.
(2) If a provider or an individual terminates an agreement, the provider shall immediately return to the individual:
(a) any money of the individual held in trust for the benefit of the individual; and
(b) 65% of any portion of the set-up fee received pursuant to Subsection 13-42-123(4)(b) which has not been credited against settlement fees.
13-42-126. Termination of agreements.(1) If an individual who has entered into an agreement fails for 60 days to make payments required by the agreement, a provider may terminate the agreement.
(2) If a provider or an individual terminates an agreement, the provider shall immediately return to the individual:
(a) any money of the individual held in trust for the benefit of the individual; and
(b) 65% of any portion of the set-up fee received pursuant to Subsection 13-42-123(4)(b) which has not been credited against settlement fees.

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13-42-127. Periodic reports and retention of records.(1) A provider shall provide the accounting required by Subsection (2):
(a) upon cancellation or termination of an agreement; and
(b) before cancellation or termination of any agreement:
(i) at least once each month; and
(ii) within five business days after a request by an individual, but the provider need not comply with more than one request in any calendar month.
(2) A provider, in a record, shall provide each individual for whom it has established a plan an accounting of the following information:
(a) the amount of money received from the individual since the last report;
(b) the amounts and dates of disbursement made on the individual's behalf, or by the individual upon the direction of the provider, since the last report to each creditor listed in the plan;
(c) the amounts deducted from the amount received from the individual;
(d) the amount held in reserve; and
(e) if, since the last report, a creditor has agreed to accept as payment in full an amount less than the principal amount of the debt owed by the individual:
(i) the total amount and terms of the settlement;
(ii) the amount of the debt when the individual assented to the plan;
(iii) the amount of the debt when the creditor agreed to the settlement; and
(iv) the calculation of a settlement fee.
(3) A provider shall maintain records for each individual for whom it provides debt-management services for five years after the final payment made by the individual and produce a copy of them to the individual within a reasonable time after a request for them. The provider may use electronic or other means of storage of the records.
13-42-127. Periodic reports and retention of records.(1) A provider shall provide the accounting required by Subsection (2):
(a) upon cancellation or termination of an agreement; and
(b) before cancellation or termination of any agreement:
(i) at least once each month; and
(ii) within five business days after a request by an individual, but the provider need not comply with more than one request in any calendar month.
(2) A provider, in a record, shall provide each individual for whom it has established a plan an accounting of the following information:
(a) the amount of money received from the individual since the last report;
(b) the amounts and dates of disbursement made on the individual's behalf, or by the individual upon the direction of the provider, since the last report to each creditor listed in the plan;
(c) the amounts deducted from the amount received from the individual;
(d) the amount held in reserve; and
(e) if, since the last report, a creditor has agreed to accept as payment in full an amount less than the principal amount of the debt owed by the individual:
(i) the total amount and terms of the settlement;
(ii) the amount of the debt when the individual assented to the plan;
(iii) the amount of the debt when the creditor agreed to the settlement; and
(iv) the calculation of a settlement fee.
(3) A provider shall maintain records for each individual for whom it provides debt-management services for five years after the final payment made by the individual and produce a copy of them to the individual within a reasonable time after a request for them. The provider may use electronic or other means of storage of the records.

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13-42-128. Prohibited acts and practices.(1) A provider may not, directly or indirectly:
(a) misappropriate or misapply money held in trust;
(b) settle a debt on behalf of an individual for more than 50% of the principal amount of the debt owed a creditor, unless the individual assents to the settlement after the creditor has assented;
(c) take a power of attorney that authorizes it to settle a debt, unless the power of attorney expressly limits the provider's authority to settle debts for not more than 50% of the principal amount of the debt owed a creditor;
(d) exercise or attempt to exercise a power of attorney after an individual has terminated an agreement;
(e) 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 an agreement; or
(B) payment of a fee;
(f) offer a gift or bonus, premium, reward, or other compensation to an individual for executing an agreement;
(g) offer, pay, or give a gift or bonus, premium, reward, or other compensation to a person for referring a prospective customer, if the person making the referral 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;
(h) receive a bonus, commission, or other benefit for referring an individual to a person;
(i) 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 upon payment of the principal amount of the debt;
(j) compensate its employees on the basis of a formula that incorporates the number of individuals the employee induces to enter into agreements;
(k) 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:
(i) receives a certification by the creditor that the payment is in full settlement of the debt; or
(ii) is part of a payment plan, the terms of which are included in the certification, which upon completion will result in full settlement of the debt;
(l) 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;
(m) misrepresent that it is authorized or competent to furnish legal advice or perform legal services;

(n) represent in its agreements, disclosures required by this chapter, advertisements, or Internet website that it is:
(i) a not-for-profit entity unless it is organized and properly operating as a not-for-profit entity under the law of the state in which it was formed; or
(ii) a tax-exempt entity unless it has received certification of tax-exempt status from the Internal Revenue Service and is properly operating as a not-for-profit entity under the law of the state in which it was formed;
(o) take a confession of judgment or power of attorney to confess judgment against an individual;
(p) employ an unfair, unconscionable, or deceptive act or practice, including the knowing omission of any material information; or
(q) make or use any untrue or misleading statement:
(i) to the administrator; 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, except as a deferral of a settlement fee at no additional expense to the individual;
(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, upon 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(6), 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; 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 for educational or counseling services required in connection with a government-sponsored program.
(5) Unless a person supplies goods, services, or facilities generally and supplies them 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.
13-42-128. Prohibited acts and practices.(1) A provider may not, directly or indirectly:
(a) misappropriate or misapply money held in trust;
(b) settle a debt on behalf of an individual for more than 50% of the principal amount of the debt owed a creditor, unless the individual assents to the settlement after the creditor has assented;
(c) take a power of attorney that authorizes it to settle a debt, unless the power of attorney expressly limits the provider's authority to settle debts for not more than 50% of the principal amount of the debt owed a creditor;
(d) exercise or attempt to exercise a power of attorney after an individual has terminated an agreement;
(e) 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 an agreement; or
(B) payment of a fee;
(f) offer a gift or bonus, premium, reward, or other compensation to an individual for executing an agreement;
(g) offer, pay, or give a gift or bonus, premium, reward, or other compensation to a person for referring a prospective customer, if the person making the referral 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;
(h) receive a bonus, commission, or other benefit for referring an individual to a person;
(i) 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 upon payment of the principal amount of the debt;
(j) compensate its employees on the basis of a formula that incorporates the number of individuals the employee induces to enter into agreements;
(k) 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:
(i) receives a certification by the creditor that the payment is in full settlement of the debt; or
(ii) is part of a payment plan, the terms of which are included in the certification, which upon completion will result in full settlement of the debt;
(l) 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;
(m) misrepresent that it is authorized or competent to furnish legal advice or perform legal services;

(n) represent in its agreements, disclosures required by this chapter, advertisements, or Internet website that it is:
(i) a not-for-profit entity unless it is organized and properly operating as a not-for-profit entity under the law of the state in which it was formed; or
(ii) a tax-exempt entity unless it has received certification of tax-exempt status from the Internal Revenue Service and is properly operating as a not-for-profit entity under the law of the state in which it was formed;
(o) take a confession of judgment or power of attorney to confess judgment against an individual;
(p) employ an unfair, unconscionable, or deceptive act or practice, including the knowing omission of any material information; or
(q) make or use any untrue or misleading statement:
(i) to the administrator; 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, except as a deferral of a settlement fee at no additional expense to the individual;
(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, upon 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(6), 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; 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 for educational or counseling services required in connection with a government-sponsored program.
(5) Unless a person supplies goods, services, or facilities generally and supplies them 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.

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13-42-129. Notice of litigation.No later than 30 days after a provider has been served with notice of a civil action for 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 in a record that it has been sued. 13-42-129. Notice of litigation.No later than 30 days after a provider has been served with notice of a civil action for 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 in a record that it has been sued.

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13-42-130. Advertising.(1) If a provider whose agreements contemplate that creditors will reduce finance charges or fees for late payment, default, or delinquency advertises debt-management services, it shall disclose, in an easily comprehensible manner, that using a debt-management plan may make it harder for the individual to obtain credit.
(2) If a provider whose agreements contemplate that creditors will settle for less than the full principal amount of debt that advertises debt-management services, it shall disclose, in an easily comprehensible manner:
(a) the information specified in Subsections 13-42-117(4)(c) and (d); and
(b) the provider's settlement fee structure, consistent with the limitations of Section 13-42-123.
13-42-130. Advertising.(1) If a provider whose agreements contemplate that creditors will reduce finance charges or fees for late payment, default, or delinquency advertises debt-management services, it shall disclose, in an easily comprehensible manner, that using a debt-management plan may make it harder for the individual to obtain credit.
(2) If a provider whose agreements contemplate that creditors will settle for less than the full principal amount of debt that advertises debt-management services, it shall disclose, in an easily comprehensible manner:
(a) the information specified in Subsections 13-42-117(4)(c) and (d); and
(b) the provider's settlement fee structure, consistent with the limitations of Section 13-42-123.

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13-42-131. Liability for the conduct of other persons.13-42-131. Liability for the conduct of other persons.
If a provider delegates any of its duties or obligations under an agreement or this chapter to another person, including an independent contractor, the provider is liable for conduct of the person which, if done by the provider, would violate the agreement or this chapter.
13-42-131. Liability for the conduct of other persons.13-42-131. Liability for the conduct of other persons.
If a provider delegates any of its duties or obligations under an agreement or this chapter to another person, including an independent contractor, the provider is liable for conduct of the person which, if done by the provider, would violate the agreement or this chapter.

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13-42-132. Powers of administrator.
(1) The administrator may act on its own initiative or in response to complaints and may receive complaints, take action to obtain voluntary compliance with this chapter, refer cases to the attorney general, and seek or provide remedies as provided in this chapter.
(2) The administrator may investigate and examine, in this state or elsewhere, by subpoena or otherwise, the activities, books, accounts, and records of a person that provides or offers to provide debt-management services, or a person to which a provider has delegated its obligations under an agreement or this chapter, to determine compliance with this chapter. Information that identifies individuals who have agreements with the provider may not be disclosed to the public. In connection with the investigation, the administrator may:
(a) charge the person the reasonable expenses necessarily incurred to conduct the examination;
(b) require or permit a person to file a statement under oath as to all the facts and circumstances of a matter to be investigated; and
(c) seek a court order authorizing seizure from a bank at which the person maintains a trust account required by 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 and relates to individuals who reside in this state.
(3) The administrator may adopt rules to implement the provisions of this chapter in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(4) The administrator may enter into cooperative arrangements with any other federal or state agency having authority over providers and may exchange with any of those agencies information about a provider, including information obtained during an examination of the provider.
(5) The administrator shall establish fees in accordance with Section 63J-1-504 to be paid by providers for the expense of administering this chapter.
(6) The administrator, 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 the United States Bureau of Labor Statistics Consumer Price Index for All Urban Consumers or, if that index is not available, another index adopted by rule by the administrator. The administrator 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%. The dollar amount shall be rounded to the nearest $100, except that the amounts in Section 13-42-123 shall be rounded to the nearest dollar.
(7) The administrator shall notify registered providers of any change in dollar amounts made pursuant to Subsection (6) and make that information available to the public.

13-42-132. Powers of administrator.
(1) The administrator may act on its own initiative or in response to complaints and may receive complaints, take action to obtain voluntary compliance with this chapter, refer cases to the attorney general, and seek or provide remedies as provided in this chapter.
(2) The administrator may investigate and examine, in this state or elsewhere, by subpoena or otherwise, the activities, books, accounts, and records of a person that provides or offers to provide debt-management services, or a person to which a provider has delegated its obligations under an agreement or this chapter, to determine compliance with this chapter. Information that identifies individuals who have agreements with the provider may not be disclosed to the public. In connection with the investigation, the administrator may:
(a) charge the person the reasonable expenses necessarily incurred to conduct the examination;
(b) require or permit a person to file a statement under oath as to all the facts and circumstances of a matter to be investigated; and
(c) seek a court order authorizing seizure from a bank at which the person maintains a trust account required by 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 and relates to individuals who reside in this state.
(3) The administrator may adopt rules to implement the provisions of this chapter in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(4) The administrator may enter into cooperative arrangements with any other federal or state agency having authority over providers and may exchange with any of those agencies information about a provider, including information obtained during an examination of the provider.
(5) The administrator shall establish fees in accordance with Section 63J-1-504 to be paid by providers for the expense of administering this chapter.
(6) The administrator, 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 the United States Bureau of Labor Statistics Consumer Price Index for All Urban Consumers or, if that index is not available, another index adopted by rule by the administrator. The administrator 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%. The dollar amount shall be rounded to the nearest $100, except that the amounts in Section 13-42-123 shall be rounded to the nearest dollar.
(7) The administrator shall notify registered providers of any change in dollar amounts made pursuant to Subsection (6) and make that information available to the public.

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13-42-133. Administrative remedies.(1) The administrator may enforce this chapter and rules adopted under this chapter by taking one or more of the following actions:
(a) ordering a provider or a director, employee, or other agent of a provider to cease and desist from any violations;
(b) ordering a provider or a person that has caused 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 Subsection 13-42-132(6), imposing on a provider or a person that has caused 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 an injunction or other 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 Subsection 13-42-132(6), if a person violates or knowingly authorizes, directs, or aids in the violation of a final order issued under Subsection (1)(a) or (b), the administrator may impose an administrative fine not exceeding $20,000 for each violation.
(3) The administrator may maintain an action to enforce this chapter in any county.
(4) The administrator may recover the reasonable costs of enforcing the chapter under Subsections (1) through (3), including attorney's fees based on the hours reasonably expended and the hourly rates for attorneys of comparable experience in the community.
(5) In determining the amount of an administrative fine to impose under Subsection (1) or (2), the administrator shall consider the seriousness of the violation, the good faith of the violator, any previous violations by the violator, the deleterious effect of the violation on the public, the net worth of the violator, and any other factor the administrator 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.
13-42-133. Administrative remedies.(1) The administrator may enforce this chapter and rules adopted under this chapter by taking one or more of the following actions:
(a) ordering a provider or a director, employee, or other agent of a provider to cease and desist from any violations;
(b) ordering a provider or a person that has caused 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 Subsection 13-42-132(6), imposing on a provider or a person that has caused 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 an injunction or other 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 Subsection 13-42-132(6), if a person violates or knowingly authorizes, directs, or aids in the violation of a final order issued under Subsection (1)(a) or (b), the administrator may impose an administrative fine not exceeding $20,000 for each violation.
(3) The administrator may maintain an action to enforce this chapter in any county.
(4) The administrator may recover the reasonable costs of enforcing the chapter under Subsections (1) through (3), including attorney's fees based on the hours reasonably expended and the hourly rates for attorneys of comparable experience in the community.
(5) In determining the amount of an administrative fine to impose under Subsection (1) or (2), the administrator shall consider the seriousness of the violation, the good faith of the violator, any previous violations by the violator, the deleterious effect of the violation on the public, the net worth of the violator, and any other factor the administrator 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.

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13-42-134. Suspension, revocation, or nonrenewal of registration.(1) In this section, "insolvent" means:
(a) having generally ceased to pay debts in the ordinary course of business other than as a result of good-faith dispute;
(b) being unable to pay debts as they become due; or
(c) being insolvent within the meaning of the federal bankruptcy law, 11 U.S.C. Section 101 et seq.
(2) The administrator may suspend, revoke, or deny renewal of a provider's registration if:
(a) a fact or condition exists that, if it had existed when the registrant applied for registration as a provider, would have been a reason for denying registration;
(b) the provider has committed a material violation of this chapter or a rule or order of the administrator under this chapter;
(c) the provider is insolvent;
(d) the provider or an employee or affiliate of the provider has refused to permit the administrator to make an examination authorized by this chapter, failed to comply with Subsection 13-42-132(2)(b) within 15 days after request, or made a material misrepresentation or omission in complying with Subsection 13-42-132(2)(b); or
(e) the provider has not responded within a reasonable time and in an appropriate manner to communications from the administrator.
(3) If a provider does not comply with Subsection 13-42-122(6) or if the administrator otherwise finds that the public health or safety or general welfare requires emergency action, the administrator may order a summary suspension of the provider's registration, effective on the date specified in the order.
(4) If the administrator suspends, revokes, or denies renewal of the registration of a provider, the administrator 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.
(5) If the administrator suspends or revokes a provider's registration, the provider may appeal and request a hearing pursuant to Title 63G, Chapter 4, Administrative Procedures Act.
13-42-134. Suspension, revocation, or nonrenewal of registration.(1) In this section, "insolvent" means:
(a) having generally ceased to pay debts in the ordinary course of business other than as a result of good-faith dispute;
(b) being unable to pay debts as they become due; or
(c) being insolvent within the meaning of the federal bankruptcy law, 11 U.S.C. Section 101 et seq.
(2) The administrator may suspend, revoke, or deny renewal of a provider's registration if:
(a) a fact or condition exists that, if it had existed when the registrant applied for registration as a provider, would have been a reason for denying registration;
(b) the provider has committed a material violation of this chapter or a rule or order of the administrator under this chapter;
(c) the provider is insolvent;
(d) the provider or an employee or affiliate of the provider has refused to permit the administrator to make an examination authorized by this chapter, failed to comply with Subsection 13-42-132(2)(b) within 15 days after request, or made a material misrepresentation or omission in complying with Subsection 13-42-132(2)(b); or
(e) the provider has not responded within a reasonable time and in an appropriate manner to communications from the administrator.
(3) If a provider does not comply with Subsection 13-42-122(6) or if the administrator otherwise finds that the public health or safety or general welfare requires emergency action, the administrator may order a summary suspension of the provider's registration, effective on the date specified in the order.
(4) If the administrator suspends, revokes, or denies renewal of the registration of a provider, the administrator 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.
(5) If the administrator suspends or revokes a provider's registration, the provider may appeal and request a hearing pursuant to Title 63G, Chapter 4, Administrative Procedures Act.

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13-42-135. Private enforcement.(1) If an individual voids an agreement pursuant to 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 the agreement, except amounts paid to creditors, in addition to the recovery under Subsections (3)(c) and (d).
(2) If an individual voids an agreement pursuant to 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 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 violates this chapter may recover in a civil action from the provider and any person that caused 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 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, 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's fees and costs.
(4) In a class action, except for a violation of Subsection 13-42-128(1)(e), the minimum damages provided in Subsection (3)(b) do not apply.
(5) In addition to the remedy available under Subsection (3), if a provider violates an individual's rights under Section 13-42-120, the individual may recover in a civil action all money paid or deposited by or on behalf of the individual pursuant to the agreement, except for amounts paid to creditors.
(6) 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 to avoid the error. An error of legal judgment with respect to a provider's obligations under this chapter is not a good-faith error. If, in connection with a violation, the provider has received more money than authorized by an agreement or this chapter, the defense provided by this Subsection (6) is not available unless the provider refunds the excess within two business days of learning of the violation.
(7) The administrator shall assist an individual in enforcing a judgment against the surety bond or other security provided under Section 13-42-113 or 13-42-114.
13-42-135. Private enforcement.(1) If an individual voids an agreement pursuant to 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 the agreement, except amounts paid to creditors, in addition to the recovery under Subsections (3)(c) and (d).
(2) If an individual voids an agreement pursuant to 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 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 violates this chapter may recover in a civil action from the provider and any person that caused 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 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, 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's fees and costs.
(4) In a class action, except for a violation of Subsection 13-42-128(1)(e), the minimum damages provided in Subsection (3)(b) do not apply.
(5) In addition to the remedy available under Subsection (3), if a provider violates an individual's rights under Section 13-42-120, the individual may recover in a civil action all money paid or deposited by or on behalf of the individual pursuant to the agreement, except for amounts paid to creditors.
(6) 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 to avoid the error. An error of legal judgment with respect to a provider's obligations under this chapter is not a good-faith error. If, in connection with a violation, the provider has received more money than authorized by an agreement or this chapter, the defense provided by this Subsection (6) is not available unless the provider refunds the excess within two business days of learning of the violation.
(7) The administrator 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.

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13-42-136. Violation of Consumer Sales Practices Act.If an act or practice of a provider violates both this chapter and Chapter 11, Utah Consumer Sales Practices Act, an individual may not recover under both for the same act or practice. 13-42-136. Violation of Consumer Sales Practices Act.If an act or practice of a provider violates both this chapter and Chapter 11, Utah Consumer Sales Practices Act, an individual may not recover under both for the same act or practice.

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§ 13-42-137. Statute of limitations(1) An action or proceeding brought pursuant to Subsection 13-42-133(1), (2), or (3) must be commenced within four years after the conduct that is the basis of the administrator's complaint.

(2) An action brought pursuant to Section 13-42-135 must be commenced within two years after the latest of:

(a) the individual's last transmission of money to a provider;

(b) the individual's last transmission of money to a creditor at the direction of the provider;

(c) the provider's last disbursement to a creditor of the individual;

(d) the provider's last accounting to the individual pursuant to Subsection 13-42-127(1);

(e) the date on which the individual discovered or reasonably should have discovered the facts giving rise to the individual's claim; or

(f) termination of actions or proceedings by the administrator with respect to a violation of the chapter.

(3) The period prescribed in Subsection (2)(e) is tolled during any period during which the provider or, if different, the defendant has materially and willfully misrepresented information required by this chapter to be disclosed to the individual, if the information so misrepresented is material to the establishment of the liability of the defendant under this chapter.
13-42-137. Statute of limitations.(1) An action or proceeding brought pursuant to Subsection 13-42-133(1), (2), or (3) shall be commenced within four years after the conduct that is the basis of the administrator's complaint.
(2) An action brought pursuant to Section 13-42-135 shall be commenced within two years after the latest of:
(a) the individual's last transmission of money to a provider;
(b) the individual's last transmission of money to a creditor at the direction of the provider;
(c) the provider's last disbursement to a creditor of the individual;
(d) the provider's last accounting to the individual pursuant to Subsection 13-42-127(1);
(e) the date on which the individual discovered or reasonably should have discovered the facts giving rise to the individual's claim; or
(f) termination of actions or proceedings by the administrator with respect to a violation of the chapter.
(3) The period prescribed in Subsection (2)(e) is tolled during any period during which the provider or, if different, the defendant has materially and willfully misrepresented information required by this chapter to be disclosed to the individual, if the information so misrepresented is material to the establishment of the liability of the defendant under this chapter.

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§ 13-42-138. Uniformity of application and construction In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. 13-42-138. Uniformity of application and construction. In applying and construing this uniform act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

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13-42-139. Relation to Electronic Signatures in Global and National Commerce Act. This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. Section 7003(b). 13-42-139. Relation to Electronic Signatures in Global and National Commerce Act. This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. Section 7003(b).

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13-42-140. Transitional provisions -- Application to existing transactions.(1) Transactions entered into before July 1, 2007 and the rights, duties, and interests resulting from them may be completed, terminated, or enforced as required or permitted by a law amended, repealed, or modified by this chapter as though the amendment, repeal, or modification had not occurred.
(2) (a) A person registered under Chapter 21, Credit Services Organizations Act, on June 30, 2007, that is required to be registered under this chapter on July 1, 2007, shall be considered to be registered under this chapter until the license in effect on June 30, 2007, expires.
(b) Notwithstanding Subsection (2)(a), except for the registration requirement, a person subject to this chapter shall comply with this chapter for any transaction entered into on or after July 1, 2007.
13-42-140. Transitional provisions -- Application to existing transactions.(1) Transactions entered into before July 1, 2007 and the rights, duties, and interests resulting from them may be completed, terminated, or enforced as required or permitted by a law amended, repealed, or modified by this chapter as though the amendment, repeal, or modification had not occurred.
(2) (a) A person registered under Chapter 21, Credit Services Organizations Act, on June 30, 2007, that is required to be registered under this chapter on July 1, 2007, shall be considered to be registered under this chapter until the license in effect on June 30, 2007, expires.
(b) Notwithstanding Subsection (2)(a), except for the registration requirement, a person subject to this chapter shall comply with this chapter for any transaction entered into on or after July 1, 2007.

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13-42-141. Severability. If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. 13-42-141. Severability. If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.