Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 174 First Substitute (2024GS)

Sponsor

Rep. Acton, C.K.

Final action

Governor Signed 3/13/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• requires a person who offers a contract with an automatic renewal provision to disclose certain information to the consumer regarding the renewal and cancellation of the contract;
• requires a person who offers a trial period offer to disclose certain information to the consumer regarding the expiration of the trial period and purchase obligations upon expiration;
• authorizes the Division of Consumer Protection (division) to enforce the provisions in this bill;
• requires fines and civil penalties for a violation of the provisions in this bill;
• requires fines and civil penalties received by the division for a violation of the provisions in this bill to be placed in the Consumer Protection Education and Training Fund;
• grants administrative rulemaking authority;
• makes technical and conforming changes; and
• defines terms.

Every vote on this bill

Bill text

AUTOMATIC RENEWAL CONTRACT REQUIREMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Cheryl K. Acton
Senate Sponsor: 
 Todd D. Weiler
LONG TITLE
General Description:
This bill addresses automatic renewal contract requirements. 
Highlighted Provisions:
This bill:
▸ requires a person who offers a contract with an automatic renewal provision to
disclose certain information to the consumer regarding the renewal and cancellation
of the contract;
▸ requires a person who offers a trial period offer to disclose certain information to
the consumer regarding the expiration of the trial period and purchase obligations
upon expiration;
▸ authorizes the Division of Consumer Protection (division) to enforce the provisions
in this bill;
▸ requires fines and civil penalties for a violation of the provisions in this bill;
▸ requires fines and civil penalties received by the division for a violation of the
provisions in this bill to be placed in the Consumer Protection Education and
Training Fund;
▸ grants administrative rulemaking authority;
▸ makes technical and conforming changes; and
▸ defines terms.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
13-2-1
 (Effective 05/02/24)
, as last amended by Laws of Utah 2023, Chapters 31, 36,
377, 458, 477, 498, 509, and 536
ENACTS:
13-70-101
, Utah Code Annotated 1953
13-70-201
, Utah Code Annotated 1953
13-70-301
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
13-2-1 (Effective 05/02/24)
 is amended to read:
13-2-1 (Effective 05/02/24).
Consumer protection division established --
Functions.
(1) There is established within the Department of Commerce the Division of Consumer
Protection.
(2) The division shall administer and enforce the following:
(a) Chapter 10a, Music Licensing Practices Act;
(b) Chapter 11, Utah Consumer Sales Practices Act;
(c) Chapter 15, Business Opportunity Disclosure Act;
(d) Chapter 20, New Motor Vehicle Warranties Act;
(e) Chapter 21, Credit Services Organizations Act;
(f) Chapter 22, Charitable Solicitations Act;
(g) Chapter 23, Health Spa Services Protection Act;
(h) Chapter 25a, Telephone and Facsimile Solicitation Act;
(i) Chapter 26, Telephone Fraud Prevention Act;
(j) Chapter 28, Prize Notices Regulation Act;
(k) Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter
Transaction Information Act;
(l) Chapter 34, Utah Postsecondary School and State Authorization Act;
(m) Chapter 41, Price Controls During Emergencies Act;
(n) Chapter 42, Uniform Debt-Management Services Act;
(o) Chapter 49, Immigration Consultants Registration Act;
(p) Chapter 51, Transportation Network Company Registration Act;
(q) Chapter 52, Residential Solar Energy Disclosure Act;
(r) Chapter 53, Residential, Vocational and Life Skills Program Act;
(s) Chapter 54, Ticket Website Sales Act;
(t) Chapter 56, Ticket Transferability Act;
(u) Chapter 57, Maintenance Funding Practices Act;
(v) Chapter 61, Utah Consumer Privacy Act;
(w) Chapter 63, Utah Social Media Regulation Act;
(x) Chapter 64, Vehicle Value Protection Agreement Act;
(y) Chapter 65, Utah Commercial Email Act;
(z) Chapter 67, Online Dating Safety Act; [
and
]
(aa) Chapter 68, Lawyer Referral Consultants Registration Act[
.
]
; and
(bb) Chapter 70, Automatic Renewal Contracts Act.
Section 2. Section 
13-70-101
 is enacted to read:
CHAPTER 70. AUTOMATIC RENEWAL CONTRACTS ACT
Part 1. General Provisions
 13-70-101.
Definitions.
As used in this chapter:
(1) "Automatic renewal provision" means a provision under a contract that is
automatically renewed at the end of a definite term for a subsequent term that is longer than 45
days.
(2) "Clearly and conspicuously disclose" means to disclose:
(a) in print:
(i) in larger type than the surrounding text;
(ii) in contrasting type, font, or color to the surrounding text of the same size; or
(iii) in a manner set off from the surrounding text of the same size by symbols or other
marks that clearly call attention to the language; or
(b) through audio, in a volume and cadence sufficient to be readily audible and
understandable.
(3) "Division" means the Division of Consumer Protection established in Section
13-2-1
.
(4) "Trial period offer" means an offer to provide a period of time to sample or use a
product or service without payment.
Section 3. Section 
13-70-201
 is enacted to read:
Part 2. Automatic Renewal Contract
 13-70-201.
Automatic renewal provisions -- Trial period offers -- Notice --
Exceptions.
(1) Except as provided in Subsection (3), a person who provides an individual a
product or service under a contract with an automatic renewal provision shall provide a notice
to the individual, at least 30 but not more than 60 days before th day on which the automatic
renewal provision renews, that clearly and conspicuously discloses:
(a) the renewal date;
(b) the total renewal cost; and
(c) options for cancellation of the contract.
(2) Except as provided in Subsection (3), a person who provides an individual a trial
period offer shall provide a notice to the individual, at least three days before the day on which
the period of time under the trial period offer expires, that clearly and conspicuously discloses:
(a) the trial period offer expiration date; and
(b) the price to be charged for the product or service, or any further purchase
obligations to be imposed on the individual, after the expiration date.
(3) This section does not apply to:
(a) an insurance organization or an affiliate of an insurance organization regulated
under Title 31A, Insurance Code;
(b) a person providing a service contract, as defined in Section 
31A-6a-101
;
(c) a financial institution or an affiliate of a financial institution regulated under Title V
of the Gramm-Leach-Bliley Act, 15 U.S.C. Sec. 6801 et seq.;
(d) a public utility, as defined in Section 
54-2-1
; or
(e) an entity or affiliate of the entity that provides services regulated by the Federal
Communications commission, Federal Energy Regulatory Commission, or federal Professional
Services Council.
Section 4. Section 
13-70-301
 is enacted to read:
Part 3. Enforcement
 13-70-301.
Administration and enforcement -- Division powers -- Fees --
Rulemaking.
(1) The division shall administer and enforce this chapter in accordance with Chapter
2, Division of Consumer Protection.
(2) In addition to the division's enforcement powers under Chapter 2, Division of
Consumer Protection:
(a) the division director may impose an administrative fine of up to $2,500 for each
violation of this chapter; and
(b) the division may bring a civil action to enforce this chapter.
(3) In a civil action by the division to enforce this chapter, the court may:
(a) declare that an act or practice violates this chapter;
(b) issue an injunction for a violation of this chapter;
(c) order disgorgement of any money received after a violation of this chapter;
(d) order payment of disgorged money to an injured individual;
(e) impose a civil penalty of up to $2,500 for each violation of this chapter; or
(f) award any other relief that the court deems reasonable and necessary.
(4) If a court grants judgment or injunctive relief to the division, the court shall award
the division:
(a) reasonable attorney fees;
(b) court costs; and
(c) investigative fees.
(5) (a) A person who violates an administrative or court order issued for a violation of
this chapter is subject to a civil penalty of no more than $5,000 for each violation.
(b) A civil penalty authorized under this section may be imposed in any civil action
brought by the division.
(c) The division shall deposit money received for the payment of a fine or civil penalty
under this section into the Consumer Protection Education and Training Fund created in
Section 
13-2-8
.
(6) The division may make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to enforce this chapter.
Section 5. 
Effective date.
This bill takes effect on January 1, 2025.