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S.B. 75

             1     

IDENTITY FRAUD

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Gene Davis

             5      AN ACT RELATING TO CRIMINAL CODE; AMENDING AUTHORITY OF THE DIVISION
             6      OF CONSUMER PROTECTION; MODIFYING DEFINITIONS; AMENDING THE
             7      CONSUMER SALES PRACTICES ACT; CREATING THE CRIMINAL OFFENSE OF
             8      IDENTITY FRAUD AND SPECIFYING EXCEPTIONS; PROVIDING INVESTIGATIVE AND
             9      PROSECUTORIAL POWERS, JURISDICTION, AND PUNISHMENT; AND PROVIDING
             10      THAT COURT S [ RECORDS REFLECT ] MAKE APPROPRIATE FINDINGS s THAT A PERSON
             10a      WHOSE IDENTITY OR FINANCIAL
             11      TRANSACTION CARD WAS USED WITHOUT CONSENT TO COMMIT A CRIME DID
             12      NOT COMMIT THE CRIME.
             13      This act affects sections of Utah Code Annotated 1953 as follows:
             14      AMENDS:
             15          13-11-3, as last amended by Chapter 105, Laws of Utah 1987
             16      S [     13-11-4, as last amended by Chapter 21, Laws of Utah 1999 ] s
             17          76-6-506.5, as last amended by Chapter 64, Laws of Utah 1998
             18      ENACTS:
             18a           S 13-11-4.5, Utah Code Annotated 1953 s
             19          76-6-1101, Utah Code Annotated 1953
             20          76-6-1102, Utah Code Annotated 1953
             21          76-6-1103, Utah Code Annotated 1953
             22          76-6-1104, Utah Code Annotated 1953
             23      Be it enacted by the Legislature of the state of Utah:
             24          Section 1. Section 13-11-3 is amended to read:
             25           13-11-3. Definitions.
             26          As used in this chapter:
             27          (1) "Charitable solicitation" means any request directly or indirectly for money, credit,
             28      property, financial assistance, or any other thing of value on the plea or representation that it will
             29      be used for a charitable purpose. A charitable solicitation may be made in any manner, including:
             30          (a) any oral or written request, including a telephone request;
             31          (b) the distribution, circulation, or posting of any handbill, written advertisement, or
             32      publication;
             33          (c) the sale of, offer or attempt to sell, or request of donations for any book, card, chance,
             34      coupon, device, magazine, membership, merchandise, subscription, ticket, flower, flag, button,
             35      sticker, ribbon, token, trinket, tag, souvenir, candy, or any other article in connection with which
             36      any appeal is made for any charitable purpose, or where the name of any charitable organization
             37      or movement is used or referred to as an inducement or reason for making any purchase donation,
             38      or where, in connection with any sale or donation, any statement is made that the whole or any part
             39      of the proceeds of any sale or donation will go to or be donated to any charitable purpose. A
             40      charitable solicitation is considered complete when made, whether or not the organization or
             41      person making the solicitation receives any contribution or makes any sale.
             42          (2) "Consumer transaction" means a sale, lease, assignment, award by chance, or other
             43      written or oral transfer or disposition of goods, services, or other property, both tangible and
             44      intangible (except securities and insurance), including the use or misuse of personal identifying
             45      information of any person in relation to a consumer transaction to, or apparently to, a person for
             46      primarily personal, family, or household purposes, or for purposes that relate to a business
             47      opportunity that requires both his expenditure of money or property and his personal services on
             48      a continuing basis and in which he has not been previously engaged, or a solicitation or offer by
             49      a supplier with respect to any of these transfers or dispositions. It includes any offer or solicitation,
             50      any agreement, any performance of an agreement with respect to any of these transfers or
             51      dispositions, and any charitable solicitation as defined in this section.
             52          (3) "Enforcing authority" means the Division of Consumer Protection.
             53          (4) "Final judgment" means a judgment, including any supporting opinion, that determines
             54      the rights of the parties and concerning which appellate remedies have been exhausted or the time
             55      for appeal has expired.
             56          (5) "Person" means an individual, corporation, government, governmental subdivision or
             57      agency, business trust, estate, trust, partnership, association, cooperative, or any other legal entity.
             58          (6) "Supplier" means a seller, lessor, assignor, offeror, broker, or other person who


             59      regularly solicits, engages in, or enforces consumer transactions, whether or not he deals directly
             60      with the consumer.
             61           S [ Section 2. Section 13-11-4 is amended to read:
             62          13-11-4. Deceptive act or practice by supplier.
             63          (1) A deceptive act or practice by a supplier in connection with a consumer transaction
             64      violates this chapter whether it occurs before, during, or after the transaction.
             65          (2) Without limiting the scope of Subsection (1), a supplier or other person commits a
             66      deceptive act or practice if the supplier or other person knowingly or intentionally:
             67          (a) indicates that the subject of a consumer transaction has sponsorship, approval,
             68      performance characteristics, accessories, uses, or benefits, if it has not;
             69          (b) indicates that the subject of a consumer transaction is of a particular standard, quality,
             70      grade, style, or model, if it is not;
             71          (c) indicates that the subject of a consumer transaction is new, or unused, if it is not, or has
             72      been used to an extent that is materially different from the fact;
             73          (d) indicates that the subject of a consumer transaction is available to the consumer for a
             74      reason that does not exist;
             75          (e) indicates that the subject of a consumer transaction has been supplied in accordance
             76      with a previous representation, if it has not;
             77          (f) indicates that the subject of a consumer transaction will be supplied in greater quantity
             78      than the supplier intends;
             79          (g) indicates that replacement or repair is needed, if it is not;
             80          (h) indicates that a specific price advantage exists, if it does not;
             81          (i) indicates that the supplier has a sponsorship, approval, or affiliation the supplier does
             82      not have;
             83          (j) indicates that a consumer transaction involves or does not involve a warranty, a
             84      disclaimer of warranties, particular warranty terms, or other rights, remedies, or obligations, if the
             85      representation is false;
             86          (k) indicates that the consumer will receive a rebate, discount, or other benefit as an
             87      inducement for entering into a consumer transaction in return for giving the supplier the names of
             88      prospective consumers or otherwise helping the supplier to enter into other consumer transactions,
             89      if receipt of the benefit is contingent on an event occurring after the consumer enters into the
] s
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             90      transaction;
             91          (l) after receipt of payment for goods or services, fails to ship the goods or furnish the
             92      services within the time advertised or otherwise represented or, if no specific time is advertised
             93      or represented, fails to ship the goods or furnish the services within 30 days, unless within the
             94      applicable time period the supplier provides the buyer with the option to either cancel the sales
             95      agreement and receive a refund of all previous payments to the supplier or to extend the shipping
             96      date to a specific date proposed by the supplier, but any refund shall be mailed or delivered to the
             97      buyer within ten business days after the seller receives written notification from the buyer of the
             98      buyer's right to cancel the sales agreement and receive the refund;
             99          (m) fails to furnish a notice of the purchaser's right to cancel a direct solicitation sale
             100      within three business days of the time of purchase if the sale is made other than at the supplier's
             101      established place of business pursuant to the supplier's mail, telephone, or personal contact and if
             102      the sale price exceeds $25, unless the supplier's cancellation policy is communicated to the buyer
             103      and the policy offers greater rights to the buyer than this Subsection (2)(m), which notice shall be
             104      a conspicuous statement written in dark bold at least 12 point type, on the first page of the purchase
             105      documentation, and shall read as follows: "YOU, THE BUYER, MAY CANCEL THIS
             106      CONTRACT AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY (or
             107      time period reflecting the supplier's cancellation policy but not less than three business days)
             108      AFTER THE DATE OF THE TRANSACTION OR RECEIPT OF THE PRODUCT,
             109      WHICHEVER IS LATER.";
             110          (n) promotes, offers, or grants participation in a pyramid scheme as defined under Title
             111      76, Chapter 6a, Pyramid Scheme Act;
             112          (o) represents that the funds or property conveyed in response to a charitable solicitation
             113      will be donated or used for a particular purpose or will be donated to or used by a particular
             114      organization, if the representation is false; [or]
             115          (p) for any unlawful or deceptive purpose obtains or records personal identifying
             116      information which would assist in accessing the financial resources or medical information in the
             117      name of another person or accesses or attempts to access the financial resources or medical
             118      information in the name of another person through the use of personal identifying information as
             119      defined in Title 76, Chapter 6, Part 11, Identity Fraud Act; or
             120          [(p)] (q) if a consumer indicates his intention of making a claim for a motor vehicle repair
] s

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             121      against his motor vehicle insurance policy:
             122          (i) commences the repair without first giving the consumer oral and written notice of:
             123          (A) the total estimated cost of the repair; and
             124          (B) the total dollar amount the consumer is responsible to pay for the repair, which dollar
             125      amount may not exceed the applicable deductible or other copay arrangement in the consumer's
             126      insurance policy; or
             127          (ii) requests or collects from a consumer an amount that exceeds the dollar amount a
             128      consumer was initially told he was responsible to pay as an insurance deductible or other copay
             129      arrangement for a motor vehicle repair under Subsection (2)(p)(i), even if that amount is less than
             130      the full amount the motor vehicle insurance policy requires the insured to pay as a deductible or
             131      other copay arrangement, unless:
             132          (A) the consumer's insurance company denies that coverage exists for the repair, in which
             133      case, the full amount of the repair may be charged and collected from the consumer; or
             134          (B) the consumer misstates, before the repair is commenced, the amount of money the
             135      insurance policy requires the consumer to pay as a deductible or other copay arrangement, in which
             136      case, the supplier may charge and collect from the consumer an amount that does not exceed the
             137      amount the insurance policy requires the consumer to pay as a deductible or other copay
             138      arrangement.
]

             138a      Section 2. Section 13-11-4.5 is enacted to read:
             138b          13-11-4.5. Deceptive act or practice by person other than a supplier.
             138c          (1) A deceptive act or practice by a person other than a supplier in connection with a
             138d      consumer transaction violates this chapter when it occurs before, during, or after the transaction.
             138e          (2) Without limiting the scope of Subsection (1), a person other than a supplier commits a
             138f      deceptive act or practice if the person knowingly or intentionally, with fraudulent intent, obtains or
             138g      records personal identifying information which would assist in accessing the financial resources or
             138h      medical information in the name of another person or accesses or attempts to access the financial
             138i      resources or medical information in the name of another person through the use of personal
             138j      identifying information as defined in Title, 76, Chapter 6, Part 11, Identity Fraud Act. s
             139          Section 3. Section 76-6-506.5 is amended to read:
             140           76-6-506.5. Financial transaction card offenses -- Classification -- Multiple
             141      violations.
             142          (1) Any person found guilty of unlawful conduct described in Section 76-6-506.2 ,
             143      76-6-506.4 , or 76-6-506.6 shall be punished for:
             144          (a) a class B misdemeanor when the value of the property, money, or thing obtained or
             145      sought to be obtained is less than $300;
             146          (b) a class A misdemeanor when the value of the property, money, or thing obtained or
             147      sought to be obtained is or exceeds $300 but is less than $1,000;


             148          (c) a third degree felony when the value of the property, money, or thing obtained or
             149      sought to be obtained is or exceeds $1,000 but is less than $5,000; and
             150          (d) a second degree felony when the value of the property, money, or thing obtained or
             151      sought to be obtained is or exceeds $5,000.


             152          (2) Multiple violations of Subsection 76-6-506.2 (1), Sections 76-6-506.4 , and 76-6-506.6
             153      may be aggregated into a single offense, and the degree of the offense is determined by the total
             154      value of all property, money, or things obtained or sought to be obtained through the multiple
             155      violations.
             156          (3) The court S [ records ] s shall S [ reflect ] MAKE APPROPRIATE FINDINGS IN ANY
             156a      PROSECUTION UNDER THIS SECTION s that the card holder did not commit the crime if:
             157          (a) another person uses the financial transaction card without the card holder's consent; and
             158          (b) that person commits a crime in addition to a financial transaction card offense with the
             159      card holder's financial transaction card.
             160          Section 4. Section 76-6-1101 is enacted to read:
             161     
Part 11. Identity Fraud Act

             162          76-6-1101. Identity fraud.
             163          This part is known as the "Identity Fraud Act."
             164          Section 5. Section 76-6-1102 is enacted to read:
             165          76-6-1102. Identity fraud crime.
             166          (1) For purposes of this part, "personal identifying information" may include:
             167          (a) name;
             168          (b) address;
             169          (c) telephone number;
             170          (d) driver's license number;
             171          (e) Social Security number;
             172          (f) place of employment;
             173          (g) employee identification numbers or other personal identification numbers;
             174          (h) mother's maiden name;
             175          (i) electronic identification numbers;
             176          (j) digital signatures S OR A PRIVATE KEY s ; or
             177          (k) any other numbers or information that can be used to access a person's financial
             178      resources or medical information in the name of another person without the consent of that person
             179      except for numbers or information that can be prosecuted as financial transaction card offenses
             180      under Sections 76-6-506 through 76-6-506.4 .
             181          (2) A person is guilty of identity fraud when that person knowingly or intentionally:
             182          (a) obtains personal identifying information of another person without the authorization


             183      of that person; and
             184          (b) uses, or attempts to use, that information S [ for any unlawful purpose ] WITH
             184a      FRAUDULENT INTENT s , including to obtain,
             185      or attempt to obtain, credit, goods, services, any other thing of value, or medical information in the
             186      name of another person without the consent of that person.
             187          (3) Identity fraud is:
             188          (a) a class B misdemeanor if the value of the credit, goods, services, or any other thing of
             189      value is less than $300;
             190          (b) a class A misdemeanor if:
             191          (i) a value cannot be determined and the personal identifying information has been used
             192      to obtain medical information in the name of another person without the consent of that person;
             193      or
             194          (ii) the value of the credit, goods, services, or any other thing of value is or exceeds $300
             195      but is less than $1,000;
             196          (c) a third degree felony if the value of the credit, goods, services, or any other thing of
             197      value is or exceeds $1,000 but is less than $5,000; or
             198          (d) a second degree felony if the value of the credit, goods, services, or any other thing of
             199      value is or exceeds $5,000.
             200          (4) Multiple violations within a 90-day period may be aggregated into a single offense, and
             201      the degree of the offense is determined by the total value of all credit, goods, services, or any other
             202      thing of value used, or attempted to be used, through the multiple violations.
             203          Section 6. Section 76-6-1103 is enacted to read:
             204          76-6-1103. Investigation, jurisdiction, and prima facie evidence of violation.
             205          (1) In any criminal proceeding brought pursuant to this section, the crime shall be
             206      considered to have been committed in any county in which any part of the identity fraud took
             207      place, regardless of whether the defendant was ever actually in that county.
             208          (2) The Division of Consumer Protection has S [ primary ] s responsibility for investigating
             209      violations of this part.
             210          (3) A criminal conviction under this part is prima facie evidence of a violation of Section
             211      13-11-4 , of the Utah Consumer Sales Practices Act.
             212          (4) Any violation of this part constitutes a violation of Section 13-11-4 , of the Utah
             213      Consumer Sales Practices Act.


             214          Section 7. Section 76-6-1104 is enacted to read:
             215          76-6-1104. Court records.
             216          In any case in which a person commits identify fraud and uses the personal identifying
             217      information obtained to commit a crime in addition to the identity fraud, the court S [ records ] s shall
             218      S [ reflect ] APPROPRIATE FINDINGS IN ANY PROSECUTION OF SUCH A CRIME s that the person
             218a      whose identity was falsely used to commit the crime did not commit the
             219      crime.




Legislative Review Note
    as of 11-17-99 12:46 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


Committee Note

The Public Utilities and Technology Interim Committee recommended this bill.


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