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First Substitute H.B. 64

Representative Afton B. Bradshaw proposes the following substitute bill:




Sponsor: Afton B. Bradshaw

             5      This act amends the Commerce and Trade Code and the Utah Criminal Code. The act
             6      amends the definition of "unsolicited telephone call." The act adjusts the bonding
             7      requirements for those making telephone solicitations. The act amends the provision for
             8      investigations of identity theft violations. The act makes technical changes.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      AMENDS:
             11          13-25a-102, as last amended by Chapter 77, Laws of Utah 1998
             12          13-26-3, as last amended by Chapter 124, Laws of Utah 1999
             13          76-6-1102, as enacted by Chapter 57, Laws of Utah 2000
             14          76-6-1103, as enacted by Chapter 57, Laws of Utah 2000
             15      Be it enacted by the Legislature of the state of Utah:
             16          Section 1. Section 13-25a-102 is amended to read:
             17           13-25a-102. Definitions.
             18          As used in this chapter:
             19          (1) "Advertisement" means material offering for sale, or advertising the availability or
             20      quality of, any property, goods, or services.
             21          (2) (a) "Automated telephone dialing system" means equipment used to:
             22          (i) store or produce telephone numbers;
             23          (ii) call a stored or produced number; and
             24          (iii) connect the number called with a recorded message or artificial voice.
             25          (b) "Automated telephone dialing system" does not include equipment used with a burglar

             26      alarm system, voice messaging system, fire alarm system, or other system used in an emergency
             27      involving the immediate health or safety of a person.
             28          (3) "Established business relationship" means a relationship that:
             29          (a) is based on inquiry, application, purchase, or transaction regarding products or services
             30      offered;
             31          (b) is formed by a voluntary two-way communication between a person making a
             32      telephone solicitation and a person to whom a telephone solicitation is made; and
             33          (c) has not been terminated by either party.
             34          (4) "Facsimile machine" means equipment used for:
             35          (a) scanning or encoding text or images for conversion into electronic signals for
             36      transmission; or
             37          (b) receiving electronic signals and reproducing them as a duplicate of the original text or
             38      image.
             39          (5) "Negative response" means a statement from a party stating the party does not wish to
             40      listen to the sales presentation or participate in the solicitation presented in the telephone call.
             41          (6) "Telephone solicitation" means the initiation of a telephone call or message for the
             42      purpose of:
             43          (a) encouraging the purchase or rental of, or investment in, property, goods, or services;
             44          (b) soliciting a sale of or extension of credit for property or services to the person called;
             45          (c) soliciting information that will be used for:
             46          (i) the direct solicitation of a sale of property or services to the person called; or
             47          (ii) an extension of credit to the person called for a sale of property or services; or
             48          (d) soliciting a charitable donation involving the exchange of any premium, prize, gift,
             49      ticket, subscription, or other benefit in connection with any appeal made for a charitable purpose.
             50          (7) "Telephone solicitor" means any natural person, firm, organization, partnership,
             51      association, or corporation who makes or causes to be made an unsolicited telephone call,
             52      including calls made by use of an automated telephone dialing system.
             53          (8) "Unsolicited telephone call" means a telephone call for a commercial purpose or to
             54      seek a financial donation other than a call made:
             55          (a) in response to an express request of the person called;
             56          (b) primarily in connection with an existing debt or contract, payment or performance of

             57      which has not been completed at the time of the call; S [ or ] s
             58          (c) to any person with whom the telephone solicitor has an [existing] established business
             59      relationship S [ . ] ; OR
             59a      (d) AS REQUIRED BY LAW FOR A MEDICAL PURPOSE. s
             60          Section 2. Section 13-26-3 is amended to read:
             61           13-26-3. Registration and bond required.
             62          (1) (a) Each telephone soliciting business engaging in telephone solicitation or sales in this
             63      state shall register annually with the Division of Consumer Protection prior to doing or continuing
             64      to do business in this state.
             65          (b) The registration form shall designate an agent residing in this state who is authorized
             66      by the telephone soliciting business to receive service of process in any action brought by this state
             67      or a resident of this state.
             68          (c) If a telephone soliciting business fails to designate an agent to receive service or fails
             69      to appoint a successor to the agent, the business' application for an initial or renewal registration
             70      shall be denied, and any current registration shall be suspended until an agent is designated.
             71          (2) The division may impose an annual registration fee set pursuant to Section 63-38-3.2 .
             72          (3) (a) Each telephone soliciting business engaging in telephone solicitation or sales in this
             73      state shall obtain and maintain the following security:
             74          (i) a performance bond issued by a surety authorized to transact surety business in this
             75      state;
             76          (ii) an irrevocable letter of credit issued by a financial institution authorized to do business
             77      in this state; or
             78          (iii) a certificate of deposit held in this state in a depository institution regulated by the
             79      Department of Financial Institutions.
             80          (b) The bond, letter of credit, or certificate of deposit shall be payable to the division for
             81      the benefit of any consumer who incurs damages as the result of any telephone solicitation or sales
             82      violation of this chapter.
             83          (c) The division may recover from the bond, letter of credit, or certificate of deposit
             84      investigative costs, attorneys' fees, and other costs of collecting and distributing funds under this
             85      section and the costs of promoting consumer education, but only if the consumer has first
             86      recovered full damages.
             87          (d) A telephone soliciting business shall keep a bond, certificate of deposit, or letter of

             88      credit in force for one year after it notifies the division in writing that it has ceased all activities
             89      regulated by this chapter.
             90          (e) The amount to be posted in the form of a bond, irrevocable letter of credit, or certificate
             91      of deposit shall be [determined as follows] h [ set by the director of the division at a reasonable level ] : h
             92      h [ in relation to the individual circumstances of the telephone soliciting business and shall not
             93      exceed:
] h

             94          (i) h [ $50,000 ] $25,000 h if neither the telephone soliciting business nor any affiliated person
             94a      [affiliated
             95      with the telephone soliciting business at the time of application has been found in an
             96      administrative, civil, or criminal proceeding] has violated this chapter within three years [of]
             97      preceding the date of the application h AND THE TELEPHONE SOLICITING BUSINESS HAS FEWER
             97a      THAN TEN EMPLOYEES; h [to have violated this chapter, the amount posted shall be
             98      $50,000] h [ ; or ]
             99           [ (ii) ] (iii) h $75,000 if the telephone soliciting business or any [currently] affiliated person has
             100      violated this chapter within three years preceding the date of the application[, the amount posted
             101      shall be $75,000; and].
             102          [(iii) for] (f) For purposes of Subsection (3)(e) an "affiliated person" means a contractor,
             103      director, employee, officer, owner, or partner of the telephone soliciting business.
             104          (4) The division may establish by rule the registration requirements for telephone soliciting
             105      businesses under the terms of Title 63, Chapter 46a, Utah Administrative Rulemaking Act. An
             106      administrative proceeding conducted by the division under this chapter shall comply with the
             107      requirements of Title 63, Chapter 46b, Administrative Procedures Act.
             108          (5) The division director may revoke a registration under this section for any violation of
             109      this chapter.
             110          Section 3. Section 76-6-1102 is amended to read:
             111           76-6-1102. Identity fraud crime.
             112          (1) For purposes of this part, "personal identifying information" may include:
             113          (a) name;
             114          (b) address;
             115          (c) telephone number;
             116          (d) driver's license number;
             117          (e) Social Security number;
             118          (f) place of employment;

             119          (g) employee identification numbers or other personal identification numbers;
             120          (h) mother's maiden name;
             121          (i) electronic identification numbers;
             122          (j) digital signatures or a private key; or
             123          (k) any other numbers or information that can be used to access a person's financial
             124      resources or medical information in the name of another person without the consent of that person
             125      except for numbers or information that can be prosecuted as financial transaction card offenses
             126      under Sections 76-6-506 through 76-6-506.4 .
             127          (2) A person is guilty of identity fraud when that person knowingly or intentionally:
             128          (a) obtains personal identifying information of another person without the authorization
             129      of that person; and
             130          (b) uses, or attempts to use, that information with fraudulent intent, including to obtain,
             131      or attempt to obtain, credit, goods, services, any other thing of value, or medical information in the
             132      name of another person without the consent of that person.
             133          (3) Identity fraud is:
             134          (a) a class B misdemeanor if the value of the credit, goods, services, or any other thing of
             135      value is less than $300;
             136          (b) a class A misdemeanor if:
             137          (i) a value cannot be determined and the personal identifying information has been used
             138      without the consent of that person to obtain medical information [in the name of another person
             139      without the consent of that person] or to obtain employment; or
             140          (ii) the value of the credit, goods, services, or any other thing of value is or exceeds $300
             141      but is less than $1,000;
             142          (c) a third degree felony if the value of the credit, goods, services, or any other thing of
             143      value is or exceeds $1,000 but is less than $5,000; or
             144          (d) a second degree felony if the value of the credit, goods, services, or any other thing of
             145      value is or exceeds $5,000.
             146          (4) Multiple violations within a 90-day period may be aggregated into a single offense, and
             147      the degree of the offense is determined by the total value of all credit, goods, services, or any other
             148      thing of value used, or attempted to be used, through the multiple violations.
             149          Section 4. Section 76-6-1103 is amended to read:

             150           76-6-1103. Investigation, jurisdiction, and prima facie evidence of violation.
             151          (1) In any criminal proceeding brought pursuant to this section, the crime shall be
             152      considered to have been committed in any county in which any part of the identity fraud took
             153      place, regardless of whether the defendant was ever actually in that county.
             154          (2) [The] In addition to investigations conducted by law enforcement agencies, the
             155      Division of Consumer Protection also has responsibility for investigating violations of this part
             156      where identity fraud is the primary violation that is alleged to have been committed.
             157          (3) A criminal conviction under this part is prima facie evidence of a violation of Section
             158      13-11-4 , of the Utah Consumer Sales Practices Act.
             159          (4) Any violation of this part constitutes a violation of Section 13-11-4 , of the Utah
             160      Consumer Sales Practices Act.

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