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-1-303.
(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, attorneys' 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 ten 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 ten 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.
Amended by Chapter 382, 2008 General Session
Download Code Section Zipped WordPerfect 13_26_000300.ZIP 3,624 Bytes
Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page
Last revised: Thursday, May 01, 2008