Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 443 First Substitute (2024GS)

Sponsor

Rep. Cobb, J.

Final action

Governor Signed 3/13/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• clarifies provisions relating to targeted solicitations involving financial information;
• requires that a court provide notice to the enforcing authority 60 days before a hearing related to a filed offer of settlement in a class action lawsuit;
• allows the enforcing authority to intervene in the class action for the limited purpose of objecting to the offer of settlement; and
• increases the time period in which the enforcing authority may intervene as an interested party in a class action.

Every vote on this bill

Bill text

UTAH CONSUMER SALES PRACTICES ACT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: James Cobb
Senate Sponsor: 
 Kirk A. Cullimore
LONG TITLE
General Description:
This bill amends provisions of the Utah Consumer Sales Practices Act relating to class
action lawsuits.
Highlighted Provisions:
This bill:
▸ clarifies provisions relating to targeted solicitations involving financial information;
▸ requires that a court provide notice to the enforcing authority 60 days before a
hearing related to a filed offer of settlement in a class action lawsuit;
▸ allows the enforcing authority to intervene in the class action for the limited purpose
of objecting to the offer of settlement; and
▸ increases the time period in which the enforcing authority may intervene as an
interested party in a class action.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
13-11-4.1
, as enacted by Laws of Utah 2020, Chapter 173
13-11-21
, as last amended by Laws of Utah 2010, Chapter 324
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
13-11-4.1
 is amended to read:
13-11-4.1.
Targeted solicitations involving financial information -- Restrictions.
(1) As used in this section:
(a) "Account holder" means a person for whom a personal account is held by a
financial institution.
(b) "Financial institution" means:
(i) a state or federally chartered:
(A) bank;
(B) savings and loan association;
(C) savings bank;
(D) industrial bank; or
(E) credit union;
(ii) any other institution under the jurisdiction of the commissioner of Financial
Institutions as described in Title 7, Financial Institutions Act; or
(iii) a person who:
(A) is subject to Title 61, Chapter 2c, Utah Residential Mortgage Practices and
Licensing Act; and
(B) engages in the business of residential mortgage loans as defined in Section
61-2c-102
.
(c) (i) "Specific account information" means information that is:
(A) relative to the account of an account holder, in addition to the name of the account
holder; and
(B) not provided by the financial institution that holds the account holder's account to
the person offering a targeted solicitation.
(ii) "Specific account information" includes:
(A) a loan number;
(B) a loan amount; or
(C) any other specific account or loan information.
(d) "Targeted solicitation" means any written or oral advertisement or solicitation for
products or services that:
(i) is addressed to an account holder;
(ii) contains specific account information;
(iii) is offered by a supplier that is not sponsored by or affiliated with the financial
institution that holds the account holder's account; and
(iv) is not authorized by the financial institution that holds the account holder's
account.
(2) (a) A supplier who is not the financial institution of an account holder may not
represent, directly or indirectly, that the supplier is the financial institution of the account
holder.
(b) If a presiding officer or court determines appropriate after considering other
relevant factors, the following actions by a supplier who is not the financial institution of an
account holder establish a presumption that the supplier is representing that the supplier is the
financial institution of the account holder in violation of Subsection (2)(a):
(i) the use or reference to the name, trade name, or trademark of the financial
institution of the account holder, 
when sending a targeted solicitation,
 unless the supplier has
written authorization from the financial institution;
(ii) the placement of specific account information on the outside of an envelope, visible
through the envelope window, or on a postcard, when sending a [
target
] 
targeted
 solicitation by
direct mail; or
(iii) the placement of specific account information in the subject line, when sending a
targeted solicitation by email.
(3) (a) A targeted solicitation, if offered in writing, shall include a clear and
conspicuous statement in bold type on the front page of the document containing:
(i) the name, address, and telephone number of the supplier offering the targeted
solicitation; and
(ii) a statement indicating that the supplier offering the targeted solicitation is not
sponsored by or affiliated with the financial institution that holds the account holder's account.
(b) If the targeted solicitation is offered orally, the supplier offering the targeted
solicitation shall verbally communicate the statement described in Subsection (3)(a) at the time
the oral solicitation is offered to the account holder.
(4) A supplier who violates this section commits a deceptive act or practice under
Subsection 
13-11-4
(1).
Section 2. Section 
13-11-21
 is amended to read:
13-11-21.
Settlement of class action -- Complaint in class action delivered to
enforcing authority.
(1) (a) 
(i)
 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.
(ii)
 The court may determine that the offer has enough merit to present to the members
of the class. If [
it
] 
the court
 so determines, [
it
] 
the court
 shall order a hearing to determine
whether the offer should be approved.
(iii)
 [
It shall give the best notice of the hearing that is practicable under the
circumstances, including
] 
The court shall provide at least 60 days advance
 notice 
of the
hearing:
(A) to the enforcing authority; and
(B)
 [
to
] 
to the extent practicable, to
 each member who can be identified through
reasonable effort.
(iv)
 The notice 
described in Subsection (1)(a)(iii)
 shall specify the terms of the offer
and a reasonable period within which members of the class who request it are entitled to be
included in the class.
(v)
 The statute of limitations for those who are excluded pursuant to this [
Subsection
(1)
] 
Subsection (1)(a)(v)
 is tolled for the period the class action has been pending, plus an
additional year. 
Within 60 days of receipt of the notice required by this Subsection (1)(a), the
enforcing authority may intervene in the class action for the limited purpose of objecting to the
offer of settlement.
(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 [
] 
 days after the receipt of a
copy of the complaint, but not thereafter, the enforcing authority may intervene in the class
action 
for purposes of participation as an interested party in litigation of the class action
.
Section 3. 
Effective date.
This bill takes effect on May 1, 2024.