Bill
Unfair Practices Act Amendments
- Number
- H.B. 35 (2023GS)
- Sponsor
- Rep. Thurston, N. (Thurston’s own bill)
- Final action
- Governor Signed 3/13/2023
- Outcome
- Became law — signed by Gov. Spencer J. Cox
Summary
This bill repeals the Unfair Practices Act.
What it does
- This bill:
- repeals the Unfair Practices Act;
- amends provisions related to the Unfair Practices Act; and
- makes technical and conforming changes.
Every vote on this bill
1/19/2023House Comm - Favorable Recommendation
House Business and Labor Committee
13 0 2YEA1/23/2023House/ passed 3rd reading
Senate Secretary
72 0 2YEA1/26/2023Senate Comm - Favorable Recommendation
Senate Business and Labor Committee
5 0 3not eligible / no record2/1/2023Senate/ passed 2nd reading
Senate 3rd Reading Calendar
24 0 5not eligible / no record2/2/2023Senate/ passed 3rd reading
Senate President
27 0 2not eligible / no recordBill text
introduced version · official source
UNFAIR PRACTICES ACT AMENDMENTS GENERAL SESSION STATE OF UTAH Chief Sponsor: Norman K Thurston Senate Sponsor: Curtis S. Bramble LONG TITLE Committee Note: The Business and Labor Interim Committee recommended this bill. Legislative Vote: 15 voting for 0 voting against 6 absent General Description: This bill repeals the Unfair Practices Act. Highlighted Provisions: This bill: ▸ repeals the Unfair Practices Act; ▸ amends provisions related to the Unfair Practices Act; and ▸ makes technical and conforming changes. Money Appropriated in this Bill: None Other Special Clauses: This bill provides a special effective date. Utah Code Sections Affected: AMENDS: 13-2-1 (Superseded 12/31/23) , as last amended by Laws of Utah 2022, Chapters 201 13-2-1 (Effective 12/31/23) , as last amended by Laws of Utah 2022, Chapters 201 and 462 41-3-201 , as last amended by Laws of Utah 2018, Chapter 387 59-14-509 , as enacted by Laws of Utah 2009, Chapter 341 59-14-608 , as enacted by Laws of Utah 2005, Chapter 204 59-14-808 , as enacted by Laws of Utah 2020, Chapter 347 REPEALS: 13-5-1 , Utah Code Annotated 1953 13-5-2 , Utah Code Annotated 1953 13-5-2.5 , as last amended by Laws of Utah 1987, Chapter 161 13-5-3 , as last amended by Laws of Utah 2010, Chapter 378 13-5-4 , Utah Code Annotated 1953 13-5-5 , Utah Code Annotated 1953 13-5-6 , Utah Code Annotated 1953 13-5-8 , as last amended by Laws of Utah 1993, Chapter 4 13-5-9 , as last amended by Laws of Utah 2008, Chapter 351 13-5-10 , Utah Code Annotated 1953 13-5-11 , Utah Code Annotated 1953 13-5-12 , as last amended by Laws of Utah 2010, Chapter 378 13-5-13 , Utah Code Annotated 1953 13-5-14 , as last amended by Laws of Utah 1983, Chapter 58 13-5-15 , as last amended by Laws of Utah 1983, Chapter 58 13-5-16 , as last amended by Laws of Utah 2010, Chapter 378 13-5-17 , Utah Code Annotated 1953 13-5-18 , Utah Code Annotated 1953 Be it enacted by the Legislature of the state of Utah: Section 1. Section 13-2-1 (Superseded 12/31/23) is amended to read: 13-2-1 (Superseded 12/31/23). 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) ] (a) Chapter 10a, Music Licensing Practices Act; [ (c) ] (b) Chapter 11, Utah Consumer Sales Practices Act; [ (d) ] (c) Chapter 15, Business Opportunity Disclosure Act; [ (e) ] (d) Chapter 20, New Motor Vehicle Warranties Act; [ (f) ] (e) Chapter 21, Credit Services Organizations Act; [ (g) ] (f) Chapter 22, Charitable Solicitations Act; [ (h) ] (g) Chapter 23, Health Spa Services Protection Act; [ (i) ] (h) Chapter 25a, Telephone and Facsimile Solicitation Act; [ (j) ] (i) Chapter 26, Telephone Fraud Prevention Act; [ (k) ] (j) Chapter 28, Prize Notices Regulation Act; [ (l) ] (k) Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter Transaction Information Act; [ (m) ] (l) Chapter 34, Utah Postsecondary Proprietary School Act; [ (n) ] (m) Chapter 34a, Utah Postsecondary School State Authorization Act; [ (o) ] (n) Chapter 41, Price Controls During Emergencies Act; [ (p) ] (o) Chapter 42, Uniform Debt-Management Services Act; [ (q) ] (p) Chapter 49, Immigration Consultants Registration Act; [ (r) ] (q) Chapter 51, Transportation Network Company Registration Act; [ (s) ] (r) Chapter 52, Residential Solar Energy Disclosure Act; [ (t) ] (s) Chapter 53, Residential, Vocational and Life Skills Program Act; [ (u) ] (t) Chapter 54, Ticket Website Sales Act; [ (v) ] (u) Chapter 56, Ticket Transferability Act; and [ (w) ] (v) Chapter 57, Maintenance Funding Practices Act. Section 2. Section 13-2-1 (Effective 12/31/23) is amended to read: 13-2-1 (Effective 12/31/23). 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) ] (a) Chapter 10a, Music Licensing Practices Act; [ (c) ] (b) Chapter 11, Utah Consumer Sales Practices Act; [ (d) ] (c) Chapter 15, Business Opportunity Disclosure Act; [ (e) ] (d) Chapter 20, New Motor Vehicle Warranties Act; [ (f) ] (e) Chapter 21, Credit Services Organizations Act; [ (g) ] (f) Chapter 22, Charitable Solicitations Act; [ (h) ] (g) Chapter 23, Health Spa Services Protection Act; [ (i) ] (h) Chapter 25a, Telephone and Facsimile Solicitation Act; [ (j) ] (i) Chapter 26, Telephone Fraud Prevention Act; [ (k) ] (j) Chapter 28, Prize Notices Regulation Act; [ (l) ] (k) Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter Transaction Information Act; [ (m) ] (l) Chapter 34, Utah Postsecondary Proprietary School Act; [ (n) ] (m) Chapter 34a, Utah Postsecondary School State Authorization Act; [ (o) ] (n) Chapter 41, Price Controls During Emergencies Act; [ (p) ] (o) Chapter 42, Uniform Debt-Management Services Act; [ (q) ] (p) Chapter 49, Immigration Consultants Registration Act; [ (r) ] (q) Chapter 51, Transportation Network Company Registration Act; [ (s) ] (r) Chapter 52, Residential Solar Energy Disclosure Act; [ (t) ] (s) Chapter 53, Residential, Vocational and Life Skills Program Act; [ (u) ] (t) Chapter 54, Ticket Website Sales Act; [ (v) ] (u) Chapter 56, Ticket Transferability Act; [ (w) ] (v) Chapter 57, Maintenance Funding Practices Act; and [ (x) ] (w) Chapter 61, Utah Consumer Privacy Act. Section 3. Section 41-3-201 is amended to read: 41-3-201. Licenses required -- Restitution -- Education. (1) As used in this section, "new applicant" means a person who is applying for a license that the person has not been issued during the previous licensing year. (2) A person may not act as any of the following without having procured a license issued by the administrator: (a) a dealer; (b) salvage vehicle buyer; (c) salesperson; (d) manufacturer; (e) transporter; (f) dismantler; (g) distributor; (h) factory branch and representative; (i) distributor branch and representative; (j) crusher; (k) remanufacturer; or (l) body shop. (3) (a) Except as provided in Subsection (3)(c), a person may not bid on or purchase a vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction unless the person is a licensed salvage vehicle buyer. (b) Except as provided in Subsection (3)(c), a person may not offer for sale, sell, or exchange a vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction except to a licensed salvage vehicle buyer. (c) A person may offer for sale, sell, or exchange a vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction: (i) to an out-of-state or out-of-country purchaser not licensed under this section, but that is authorized to do business in the domestic or foreign jurisdiction in which the person is domiciled or registered to do business; (ii) subject to the restrictions in Subsection (3)(d), to an in-state purchaser not licensed under this section that: (A) has a valid business license in Utah; and (B) has a Utah sales tax license; and (iii) to a crusher. (d) (i) An operator of a motor vehicle auction shall verify that an in-state purchaser not licensed under this section has the licenses required in Subsection (3)(c)(ii). (ii) An operator of a motor vehicle auction may only offer for sale, sell, or exchange five vehicles with a salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction in any 12-month period to an in-state purchaser that does not have a salvage vehicle buyer license issued in accordance with Subsection 41-3-202 (17). (iii) The five vehicle limitation under this Subsection (3)(d) applies to each Utah sales tax license and not to each person with the authority to use a sales tax license. (iv) An operator of a motor vehicle auction may not sell a vehicle with a nonrepairable certificate as defined in Section 41-1a-1001 to a purchaser otherwise allowed to purchase a vehicle under Subsection (3)(c)(ii). (e) For a vehicle with a salvage certificate purchased under Subsection (3)(c)(ii), an operator of a motor vehicle auction shall: (i) (A) until Subsection (3)(e)(i)(B) applies, make application for a salvage certificate of title on behalf of the Utah purchaser within seven days of the purchase if the purchaser does not have a salvage vehicle buyer license, dealer license, body shop license, or dismantler license issued in accordance with Section 41-3-202 ; or (B) beginning on or after the date that the Motor Vehicle Division has implemented the Motor Vehicle Division's GenTax system, make application electronically, in a form and time period approved by the Motor Vehicle Division, for a salvage certificate of title to be issued in the name of the purchaser; (ii) give to the purchaser a disclosure printed on a separate piece of paper that states: "THIS DISCLOSURE STATEMENT MUST BE GIVEN BY THE SELLER TO THE BUYER EVERY TIME THIS VEHICLE IS RESOLD WITH A SALVAGE CERTIFICATE Vehicle Identification Number (VIN) Year: Make: Model: SALVAGE VEHICLE--NOT FOR RESALE WITHOUT DISCLOSURE WARNING: THIS SALVAGE VEHICLE MAY NOT BE SAFE FOR OPERATION UNLESS PROPERLY REPAIRED. SOME STATES MAY REQUIRE AN INSPECTION BEFORE THIS VEHICLE MAY BE REGISTERED. THE STATE OF UTAH MAY REQUIRE THIS VEHICLE TO BE PERMANENTLY BRANDED AS A REBUILT SALVAGE VEHICLE. OTHER STATES MAY ALSO PERMANENTLY BRAND THE CERTIFICATE OF TITLE. _________________________________________________________________ Signature of Purchaser Date"; and (iii) if applicable, provide evidence to the Motor Vehicle Division of: (A) payment of sales taxes on taxable sales in accordance with Section 41-1a-510 ; (B) the identification number inspection required under Section 41-1a-511 ; and (C) the odometer disclosure statement required under Section 41-1a-902 . (f) The Motor Vehicle Division shall include a link to the disclosure statement described in Subsection (3)(e)(ii) on its website. (g) The commission may impose an administrative entrance fee established in accordance with the procedures and requirements of Section 63J-1-504 not to exceed $10 on a person not holding a license described in Subsection (3)(e)(i) that enters the physical premises of a motor vehicle auction for the purpose of viewing available salvage vehicles prior to an auction. (h) A vehicle sold at or through a motor vehicle auction to an out-of-state purchaser with a nonrepairable or salvage certificate may not be certificated in Utah until the vehicle has been certificated out-of-state. (4) (a) An operator of a motor vehicle auction shall keep a record of the sale of each salvage vehicle. (b) A record described under Subsection (4)(a) shall contain: (i) the purchaser's name and address; and (ii) the year, make, and vehicle identification number for each salvage vehicle sold. (c) An operator of a motor vehicle auction shall: (i) provide the record described in Subsection (4)(a) electronically in a method approved by the division to the division within two business days of the completion of the motor vehicle auction; (ii) retain the record described in this Subsection (4) for five years from the date of sale; and (iii) make a record described in this Subsection (4) available for inspection by the division at the location of the motor vehicle auction during normal business hours. (5) (a) An operator of a motor vehicle auction shall store a salvage vehicle sold at auction in a secure facility until the salvage vehicle is claimed as provided in this section. (b) Beginning at the time of purchase and until the salvage vehicle is claimed, the motor vehicle auction operator may collect a daily storage fee for the secure storage of each salvage vehicle sold at auction. (c) Except as provided in Subsection (5)(d), before releasing possession of a salvage vehicle purchased at a motor vehicle auction to a person not licensed under this part or certified as a tow truck operator under Title 72, Chapter 9, Part 6, Tow Truck Provisions, and if the person claiming the vehicle is a person other than the purchaser of the vehicle, the motor vehicle auction operator shall create a record that shall contain: (i) the name and address, as verified by government issued identification, of the person claiming the vehicle; (ii) the year, make, and vehicle identification number of the claimed vehicle; (iii) a written statement from the person claiming the vehicle indicating the location where the salvage vehicle will be delivered; and (iv) verification that the claimant has authorization from the purchaser to claim the vehicle. (d) If the salvage vehicle is claimed by a transporter or a tow truck operator, the transporter or the tow truck operator shall submit to the motor vehicle auction operator a written record on any release forms indicating the location where the salvage vehicle will be delivered if delivered within the state. (e) An operator of a motor vehicle auction shall: (i) retain the record described in Subsection (5)(c) for five years from the date of sale; and (ii) make the record available for inspection by the division at the location of the motor vehicle auction during normal business hours. (6) (a) If applicable, an operator of a motor vehicle auction shall comply with the reporting requirements of the National Motor Vehicle Title Information System overseen by the United States Department of Justice if the person sells a vehicle with a salvage certificate to an in-state purchaser under Subsection (3)(c)(ii). (b) The Motor Vehicle Division shall include a link to the National Motor Vehicle Title Information System on its website. (7) (a) An operator of a motor vehicle auction that sells a salvage vehicle to a person that is an out-of-country buyer shall: (i) stamp on the face of the title so as not to obscure the name, date, or mileage statement the words "FOR EXPORT ONLY" in all capital, black letters; and (ii) stamp in each unused reassignment space on the back of the title the words "FOR EXPORT ONLY." (b) The words "FOR EXPORT ONLY" shall be: (i) at least two inches wide; and (ii) clearly legible. (8) A dealer, manufacturer, remanufacturer, transporter, dismantler, crusher, or body shop shall obtain a supplemental license, in accordance with Section 41-3-201.7 for each additional place of business maintained by the licensee. (9) (a) A person who has been convicted of any law relating to motor vehicle commerce or motor vehicle fraud may not be issued a license or purchase a vehicle with a salvage or nonrepairable certificate unless full restitution regarding those convictions has been made. (b) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection (9)(a) if the division has informed the operator of the motor vehicle auction, the dealer, or the consignor in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable or salvage certificate under Subsection (9)(a). (10) (a) The division may not issue a license to a new applicant for a new or used motor vehicle dealer license, a direct-sale manufacturer license, a new or used motorcycle dealer license, or a small trailer dealer license unless the new applicant completes an eight-hour orientation class approved by the division that includes education on motor vehicle laws and rules. (b) The approved costs of the orientation class shall be paid by the new applicant. (c) The class shall be completed by the new applicant and the applicant's partners, corporate officers, bond indemnitors, and managers. (d) (i) The division shall approve: (A) providers of the orientation class; and (B) costs of the orientation class. (ii) A provider of an orientation class shall submit the orientation class curriculum to the division for approval prior to teaching the orientation class. (iii) A provider of an orientation class shall include in the orientation materials: (A) ethics training; (B) motor vehicle title and registration processes; [ (C) provisions of Title 13, Chapter 5, Unfair Practices Act, relating to motor vehicles; ] [ (D) ] (C) Department of Insurance requirements relating to motor vehicles; [ (E) ] (D) Department of Public Safety requirements relating to motor vehicles; [ (F) ] (E) federal requirements related to motor vehicles as determined by the division; and [ (G) ] (F) any required disclosure compliance forms as determined by the division. (11) A person or purchaser described in Subsection (3)(c)(ii): (a) may not purchase more than five salvage vehicles with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 in any 12-month period; (b) may not, without first complying with Section 41-1a-705 , offer for sale, sell, or exchange more than two vehicles with a salvage certificate as defined in Section 41-1a-1001 in any 12-month period to a person not licensed under this section; and (c) may not, without first complying with Section 41-1a-705 , offer for sale, sell, or exchange a vehicle with a nonrepairable certificate as defined in Section 41-1a-1001 to a person not licensed under this section. (12) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection (11)(a) if the division has informed the operator of the motor vehicle auction, the dealer, or the consignor in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable or salvage certificate under Subsection (11)(a). Section 4. Section 59-14-509 is amended to read: 59-14-509. Restrictions on mail order or Internet sales. (1) For purposes of this section: (a) "Distributor" means a person, wherever residing or located, who: (i) is licensed in this state to purchase non-taxed tobacco products; and (ii) stores, sells, or otherwise disposes of tobacco products. (b) "Licensed person" is as defined in Subsection 59-14-409 (1). (c) "Order or purchase" includes: (i) by mail or delivery service; (ii) through the Internet or computer network; (iii) by telephone; or (iv) through some other electronic method. (d) "Retailer" means any person who sells tobacco products to consumers for personal consumption. (2) A person, distributor, manufacturer, or retailer shall not: (a) cause tobacco products or cigarettes as defined in Section 59-22-202 to be ordered or purchased by anyone other than a licensed person; or (b) knowingly provide substantial assistance to a person who violates this section. (3) (a) Each order or purchase of a tobacco product or cigarettes as defined in Section 59-22-202 in violation of Subsection (2) shall constitute a separate violation under this section. (b) In addition to the penalties in Subsection (4), a person who violates this section is subject to: (i) a civil penalty in an amount not to exceed $5,000 for each violation of this section; (ii) an injunction to restrain a threatened or actual violation of this section; and (iii) recovery by the state for: (A) the costs of investigation; (B) the cost of expert witness fees; (C) the cost of the action; and (D) reasonable attorney's fees. (4) [ A ] If a person [ who ] knowingly violates this section [ has engaged in an unfair and deceptive trade practice in violation of Title 13, Chapter 5, Unfair Practices Act, and ] , the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the state treasurer for deposit in the General Fund. Section 5. Section 59-14-608 is amended to read: 59-14-608. License revocation and penalties. (1) (a) The commission may revoke or suspend the license of a stamping agent in the manner provided in Section 59-14-202 if the commission determines that the stamping agent has violated Sections 59-14-604 , 59-14-606 , or other rule adopted under the provisions of this part. (b) The penalty imposed under Subsection (1)(a) is in addition to or in lieu of any other civil or criminal remedy provided by law. (c) Each stamp affixed and each sale or offer to sell cigarettes in violation of Section 59-14-604 , or other rule adopted under the provisions of this part, shall constitute a separate violation. (d) For each violation under Subsection (1)(c), the commissioner may, in addition to the penalty imposed by Subsection (1)(a), impose a civil penalty in an amount not to exceed the greater of 500% of the retail value of the cigarettes or $5,000. (2) (a) Any cigarettes that have been sold, offered for sale, or possessed for sale, in this state, or imported for personal consumption in this state, in violation of Section 59-14-604 are: (i) contraband under Section 59-14-213 ; and (ii) subject to seizure and forfeiture as provided in Section 59-14-213 . (b) Cigarettes seized and forfeited under the provisions of this section shall be destroyed and not resold. (3) (a) The commission may seek an injunction to: (i) restrain a threatened or actual violation of this part by a stamping agent; or (ii) to compel the stamping agent to comply with this part. (b) In any action brought pursuant to this section, the state is entitled to recover the costs of investigation, costs of the action, and reasonable attorney fees. [ (4) A person who violates Section 59-14-604 engages in an unfair and deceptive trade practice in violation of Title 13, Chapter 5, Unfair Practices Act. ] Section 6. Section 59-14-808 is amended to read: 59-14-808. Restrictions on mail order or Internet sales. (1) For purposes of this section: (a) "Distributor" means a person, wherever residing or located, who: (i) is licensed in this state to purchase a non-taxed nicotine product or a non-taxed electronic cigarette product; and (ii) stores, sells, or otherwise disposes of a nicotine product or an electronic cigarette product. (b) "Licensed person" means the same as that term is defined in Section 59-14-409 . (c) "Order or purchase" includes: (i) by mail or delivery service; (ii) through the Internet or computer network; (iii) by telephone; or (iv) through some other electronic method. (d) "Retailer" means any person who sells a nicotine product or an electronic cigarette product to consumers for personal consumption. (2) A person, distributor, manufacturer, or retailer shall not: (a) cause a nicotine product or an electronic cigarette product to be ordered or purchased by anyone other than a licensed person; or (b) knowingly provide substantial assistance to a person who violates this section. (3) (a) Each order or purchase of a nicotine product or an electronic cigarette product in violation of Subsection (2) constitutes a separate violation under this section. (b) In addition to the penalties in Subsection (4), a person who violates this section is subject to: (i) a civil penalty in an amount not to exceed $5,000 for each violation of this section; (ii) an injunction to restrain a threatened or actual violation of this section; and (iii) recovery by the state for: (A) the costs of investigation; (B) the cost of expert witness fees; (C) the cost of the action; and (D) reasonable attorney's fees. (4) [ A ] If a person [ who ] knowingly violates this section , [ has engaged in an unfair and deceptive trade practice in violation of Title 13, Chapter 5, Unfair Practices Act, and ] the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the state treasurer for deposit in the General Fund. Section 7. Repealer. This bill repeals: Section 13-5-1 , Short title. Section 13-5-2 ,"Person" defined. Section 13-5-2.5 , Procedure to prevent unfair competition. Section 13-5-3 , Unlawful discriminations -- Burden of proof -- Taking or offering commissions -- Payments for benefit of customers -- Discrimination among purchasers -- Inducing discriminations. Section 13-5-4 , Return of net earnings or surplus by cooperatives to members. Section 13-5-5 ,"Commerce" defined. Section 13-5-6 , Liability of agents. Section 13-5-8 , Advertising goods not prepared to supply. Section 13-5-9 , Limitation on quantity of article or product sold or offered for sale to any one customer. Section 13-5-10 , Cost -- Purchase price at forced sales. Section 13-5-11 , Proceedings -- Local cost surveys as evidence. Section 13-5-12 , Sales exempt from chapter. Section 13-5-13 , Contracts in violation declared illegal. Section 13-5-14 , Injunctive relief -- Damages -- Immunity. Section 13-5-15 , Penalty for violation of chapter. Section 13-5-16 , Separability clause. Section 13-5-17 , Policy of act. Section 13-5-18 , Cost -- Separate entities of business. Section 8. Effective date. This bill takes effect on May 3, 2023, except that the amendments to Section 13-2-1 (Effective 12/31/23) take effect on December 31, 2023.