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H.B. 111

             1     

STATE RESPONSIBILITY FOR REGULATION

             2     
OF POSTSECONDARY PROPRIETARY

             3     
SCHOOLS

             4     
2002 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Sponsor: Afton B. Bradshaw

             7      This act modifies provisions related to postsecondary proprietary schools. The act transfers
             8      the responsibility for registering and regulating postsecondary proprietary schools from the
             9      State Board of Regents to the Division of Consumer Protection. The act has a July 1, 2002
             10      effective date and provides a repealer.
             11      This act affects sections of Utah Code Annotated 1953 as follows:
             12      AMENDS:
             13          13-2-1, as last amended by Chapter 283, Laws of Utah 2001
             14          16-6a-401, as enacted by Chapter 300, Laws of Utah 2000
             15          16-10a-401, as last amended by Chapter 131, Laws of Utah 2000
             16          16-11-16, as enacted by Chapter 131, Laws of Utah 2000
             17          42-2-6.6, as last amended by Chapter 218, Laws of Utah 2001
             18          48-2a-102, as last amended by Chapter 131, Laws of Utah 2000
             19          48-2c-106, as enacted by Chapter 260, Laws of Utah 2001
             20      ENACTS:
             21          13-34-101, Utah Code Annotated 1953
             22          13-34-102, Utah Code Annotated 1953
             23          13-34-103, Utah Code Annotated 1953
             24          13-34-104, Utah Code Annotated 1953
             25          13-34-105, Utah Code Annotated 1953
             26          13-34-106, Utah Code Annotated 1953
             27          13-34-107, Utah Code Annotated 1953


             28          13-34-108, Utah Code Annotated 1953
             29          13-34-109, Utah Code Annotated 1953
             30          13-34-110, Utah Code Annotated 1953
             31          13-34-111, Utah Code Annotated 1953
             32          13-34-112, Utah Code Annotated 1953
             33          13-34-113, Utah Code Annotated 1953
             34          13-34-114, Utah Code Annotated 1953
             35          13-34-201, Utah Code Annotated 1953
             36      REPEALS:
             37          53B-5-101, as enacted by Chapter 167, Laws of Utah 1987
             38          53B-5-102, as last amended by Chapter 155, Laws of Utah 1990
             39          53B-5-103, as last amended by Chapter 287, Laws of Utah 1995
             40          53B-5-104, as last amended by Chapter 155, Laws of Utah 1990
             41          53B-5-105, as last amended by Chapter 287, Laws of Utah 1995
             42          53B-5-106, as last amended by Chapter 86, Laws of Utah 1998
             43          53B-5-107, as last amended by Chapter 58, Laws of Utah 2000
             44          53B-5-108, as last amended by Chapter 58, Laws of Utah 2000
             45          53B-5-109, as enacted by Chapter 167, Laws of Utah 1987
             46          53B-5-110, as enacted by Chapter 167, Laws of Utah 1987
             47          53B-5-111, as last amended by Chapter 38, Laws of Utah 1993
             48          53B-5-112, as last amended by Chapter 155, Laws of Utah 1990
             49          53B-5-113, as enacted by Chapter 287, Laws of Utah 1995
             50          53B-5-114, as last amended by Chapter 260, Laws of Utah 2001
             51          53B-5-201, as enacted by Chapter 167, Laws of Utah 1987
             52      Be it enacted by the Legislature of the state of Utah:
             53          Section 1. Section 13-2-1 is amended to read:
             54           13-2-1. Consumer protection division established -- Functions.
             55          (1) There is established within the Department of Commerce the Division of Consumer
             56      Protection.
             57          (2) The division shall administer and enforce the following:
             58          [(1)] (a) Chapter 5, Unfair Practices Act;


             59          [(2) ] (b) Chapter 10a, Music Licensing Practices Act;
             60          [(3) ] (c) Chapter 11, Utah Consumer Sales Practices Act;
             61          [(4) ] (d) Chapter 15, Business Opportunity Disclosure Act;
             62          [(5) ] (e) Chapter 20, New Motor [Vehicle] Vehicles Warranties Act;
             63          [(6) ] (f) Chapter 21, Credit Services Organizations Act;
             64          [(7) ] (g) Chapter 22, Charitable Solicitations Act;
             65          [(8) ] (h) Chapter 23, Health Spa Services Protection Act;
             66          [(9) ] (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
             67          [(10) ] (j) Chapter 26, Telephone Fraud Prevention Act;
             68          [(11) ] (k) Chapter 28, Prize Notices Regulation Act; [and]
             69          [(12) ] (l) Chapter 30, Utah Personal Introduction Services Protection Act[.]; and
             70          (m) Chapter 34, Utah Postsecondary Proprietary School Act.
             71          Section 2. Section 13-34-101 is enacted to read:
             72     
CHAPTER 34. UTAH POSTSECONDARY PROPRIETARY SCHOOL ACT

             73     
Part 1. General Provisions

             74          13-34-101. Title.
             75          This chapter is known as the "Utah Postsecondary Proprietary School Act."
             76          Section 3. Section 13-34-102 is enacted to read:
             77          13-34-102. Legislative intent.
             78          It is the policy of this state to do the following:
             79          (1) encourage private postsecondary education and training;
             80          (2) assure and protect the integrity of certificates and diplomas conferred by proprietary
             81      postsecondary educational institutions;
             82          (3) protect students and potential students from deceptively promoted, inadequately
             83      staffed, and unqualified proprietary institutions and programs; and
             84          (4) avoid unnecessary interference by the division with the internal academic policies and
             85      management practices of postsecondary educational institutions, but to facilitate disclosure of
             86      those matters to students and the public.
             87          Section 4. Section 13-34-103 is enacted to read:
             88          13-34-103. Definitions.
             89          As used in this chapter:


             90          (1) "Agent" means any person who owns an interest in or is employed by a proprietary
             91      school and who:
             92          (a) enrolls or attempts to enroll a resident of this state in a proprietary school;
             93          (b) offers to award educational credentials for remuneration on behalf of a proprietary
             94      school; or
             95          (c) holds himself out to residents of this state as representing a proprietary school for any
             96      purpose.
             97          (2) "Certificate of registration" means approval of the division to operate a school or
             98      institution in compliance with this chapter and rules adopted under this chapter. The registration
             99      is not an endorsement of the school or institution by either the division or the state of Utah.
             100          (3) "Division" means the Division of Consumer Protection.
             101          (4) "Educational credentials" means degrees, diplomas, certificates, transcripts, reports,
             102      documents, or letters of designation, marks, appellations, series of letters, numbers, or words
             103      which signify or appear to signify enrollment, attendance, progress, or satisfactory completion of
             104      the requirements or prerequisites for any educational program.
             105          (5) "Institution" means an individual, corporation, partnership, association, cooperative,
             106      or other legal entity.
             107          (6) "Offer" means to advertise, publicize, solicit, or encourage any person directly or
             108      indirectly.
             109          (7) "Operate" in this state means to have a significant presence within the state, to conduct
             110      significant educational activities within the state, or to offer postsecondary instruction leading to
             111      a postsecondary degree or certificate to any number of Utah residents assembled at a receiving site
             112      in Utah from a location outside the state by correspondence or any telecommunications or
             113      electronic media technology.
             114          (8) "Ownership" means the controlling interest in a school, institution, or college. If the
             115      school, institution, or college is owned or controlled by other than a natural person, "ownership"
             116      refers to the controlling interest in the legal entity which controls the school, institution, or college.
             117          (9) "Postsecondary education" means education or educational services offered primarily
             118      to persons who have completed or terminated their secondary or high school education or who are
             119      beyond the age of compulsory school attendance.
             120          (10) "Proprietary school" means any private institution, including business, modeling,


             121      paramedical, tax preparation, trade and technical schools, which offers postsecondary education
             122      in consideration of the payment of tuition or fees for the attainment of educational, professional,
             123      or vocational objectives, other than those schools exempted under this chapter.
             124          (11) "Rules" means those rules adopted by the division under the Utah Administrative
             125      Rulemaking Act necessary to enforce and administer this chapter.
             126          (12) "Utah school or institution" means a postsecondary educational school or institution
             127      whose headquarters or primary operations are in Utah.
             128          Section 5. Section 13-34-104 is enacted to read:
             129          13-34-104. Prohibited acts -- Exceptions -- Responsibilities of proprietary schools.
             130          (1) Except as provided in this chapter, a proprietary school may not offer, sell, or award
             131      a degree or any other type of educational credential unless the student has enrolled in and
             132      successfully completed a prescribed program of study as outlined in the school's catalogue.
             133          (2) This prohibition does not apply to honorary credentials clearly designated as such on
             134      the front side of a diploma, or certificates and awards by schools that offer other educational
             135      credentials requiring enrollment in and successful completion of a prescribed program of study in
             136      compliance with the requirements of this chapter.
             137          (3) A proprietary school must provide bona fide instruction through student-faculty
             138      interaction.
             139          (4) A proprietary school may not enroll a student in a program unless the school has made
             140      a good-faith determination that the student has the ability to benefit from the program.
             141          (5) The division shall establish standards and criteria for the following:
             142          (a) the awarding of educational credentials;
             143          (b) bona fide instruction through student-faculty interaction; and
             144          (c) determination of the ability of a student to benefit from a program.
             145          Section 6. Section 13-34-105 is enacted to read:
             146          13-34-105. Exempted institutions.
             147          (1) This chapter does not apply to the following institutions:
             148          (a) a Utah institution directly supported, to a substantial degree, with funds provided by
             149      the state, a local school district, or other Utah governmental subdivision;
             150          (b) an institution which offers instruction exclusively at or below the 12th grade level;
             151          (c) a lawful enterprise which offers only professional review programs, such as C.P.A.


             152      and bar examination review and preparation courses;
             153          (d) a Utah private, postsecondary educational institution that is owned, controlled,
             154      operated, or maintained by a bona fide church or religious denomination, which is exempted from
             155      property taxation under the laws of this state;
             156          (e) a Utah school or institution which is accredited by a regional or national accrediting
             157      agency recognized by the United States Department of Education. An institution, branch,
             158      extension, or facility operating within the state which is affiliated with an institution operating in
             159      another state must be separately approved by the affiliate's regional or national accrediting agency
             160      to qualify for this exemption. h [ If available evidence suggests that an accredited institution is not
             161      in compliance with the standards for registration under this chapter and applicable division rules,
             162      the division shall contact the institution and, if appropriate, its accrediting association and request
             163      corrective action;
] h

             164          (f) a business organization, trade or professional association, fraternal society, or labor
             165      union that sponsors or conducts courses of instruction or study predominantly for bona fide
             166      employees or members and does not, in advertising, describe itself as a school; for purposes of this
             167      subsection, a business organization, trade or professional association, fraternal society, or labor
             168      union that hires a majority of the persons who successfully complete its course of instruction or
             169      study with a reasonable degree of proficiency and apply for employment with that same entity is
             170      considered to be conducting the course predominantly for bona fide employees or members;
             171          (g) an institution that exclusively offers general education courses or instruction solely
             172      remedial, avocational, nonvocational, or recreational in nature, which does not advertise
             173      occupation objectives or grant educational credentials;
             174          (h) an institution which offers only workshops or seminars lasting no longer than three
             175      calendar days and for which academic credit is not awarded; and
             176          (i) an institution which offers programs in barbering, cosmetology, real estate, insurance,
             177      or flying that are regulated and approved by a state or federal governmental agency.
             178          (2) If available evidence suggests that an exempt institution under this section is not in
             179      compliance with the standards of registration under this chapter and applicable division rules, the
             180      division shall contact the institution and, if appropriate, the state or federal government agency to
             181      request corrective action. h SUBSECTION 2 DOES NOT APPLY TO AN INSTITUTION EXEMPTED
             181a      UNDER SUBSECTION (1)(e). h    
             182          Section 7. Section 13-34-106 is enacted to read:


             183          13-34-106. Responsibilities of division.
             184          The division is responsible for the administration of this chapter, and shall do the
             185      following:
             186          (1) prescribe the contents of the registration statements required by this chapter relating
             187      to the quality of education and ethical and business practices;
             188          (2) issue certification of registration upon receipt and approval of the registration statement
             189      required under Section 13-34-107 ;
             190          (3) receive, investigate, and make available for public inspection the registration
             191      statements filed by proprietary schools operating or intending to operate in the state;
             192          (4) maintain and publicize a list of proprietary schools for which a registration statement
             193      is on file with the division;
             194          (5) investigate, on its own initiative or in response to a complaint filed with it, any
             195      institution subject to, or reasonably believed by the division to be subject to, this chapter;
             196          (6) negotiate and enter into interstate reciprocity agreements with other states, if in the
             197      judgment of the division, the agreements are or will help to effectuate the purposes of this chapter;
             198      and
             199          (7) consent to the use of educational terms in business names in accordance with Section
             200      13-34-114 .
             201          Section 8. Section 13-34-107 is enacted to read:
             202          13-34-107. Operation of proprietary schools -- Required registration statement -- Fee
             203      -- Denial of registration -- Registration does not constitute endorsement.
             204          (1) An institution may not advertise, recruit students for, or operate a proprietary school
             205      in this state unless it has:
             206          (a) filed with the division a registration statement relating to the school that is in
             207      compliance with applicable rules promulgated by the division and is also in compliance with the
             208      other requirements set forth in this chapter; or
             209          (b) established an exemption with the division.
             210          (2) (a) The division may refuse to accept a statement of registration or exemption if:
             211          (i) the proprietary school or an owner, administrator, faculty, staff, or agent of the school
             212      has violated laws, federal regulations, or state rules as determined in a criminal, civil, or
             213      administrative proceeding; and


             214          (ii) the division determines the violation is relevant to the appropriate operation of the
             215      school.
             216          (b) The statement of registration or exemption shall be verified by the oath or affirmation
             217      of the owner or a responsible officer of the school filing it.
             218          (c) The statement shall include a certification as to whether the school or an owner,
             219      administrator, faculty, staff, or agent of the school has violated laws, federal regulations, or state
             220      rules as determined in a criminal, civil, or administrative proceeding.
             221          (d) The proprietary school shall make available, upon request, a copy of the statement,
             222      showing the date upon which it was filed, and a certificate of registration shall be displayed by the
             223      proprietary school in a conspicuous place on its premises.
             224          (3) (a) A registration statement and the accompanying certificate of registration are not
             225      transferable.
             226          (b) In the event of a change in ownership or in the governing body of the proprietary
             227      school, the new owner or governing body, within 30 days after the change, shall file a new
             228      registration statement.
             229          (4) A registration statement or a renewal statement and the accompanying certificate of
             230      registration are effective for a period of two years after the date of filing and issuance.
             231          (5) (a) The division shall establish a graduated fee structure for the filing of registration
             232      statements by various classifications of institutions pursuant to Section 63-38-3.2 .
             233          (b) Fees are not refundable.
             234          (c) Fees shall be deposited in the Commerce Service Fund pursuant to Section 13-1-2 .
             235          (6) (a) Each proprietary school shall demonstrate fiscal responsibility at the time it files
             236      its registration statement as prescribed by rules of the division.
             237          (b) It shall provide evidence to the division that it is financially sound and can reasonably
             238      fulfill commitments to and obligations it has incurred with students and creditors.
             239          (c) A proprietary school applying for an initial certificate of registration to operate shall
             240      prepare and submit financial statements and supporting documentation as requested by the
             241      division.
             242          (d) A proprietary school applying for renewal of a certificate of registration to operate or
             243      renewal under new ownership must provide audited financial statements.
             244          (e) The division may require evidence of financial status at other times when it is in the


             245      best interest of students to require such information.
             246          (7) (a) A proprietary school applying for an initial certificate or seeking renewal shall
             247      provide a surety bond, certificate of deposit, or irrevocable letter of credit in a form approved by
             248      the division.
             249          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             250      division may make rules providing for:
             251          (i) the amount of the bond, certificate, or letter of credit required under Subsection (7)(a),
             252      not to exceed in amount the anticipated tuition and fees to be received by the proprietary school
             253      during a school year;
             254          (ii) the execution of the bond, certificate, or letter of credit;
             255          (iii) cancellation of the bond, certificate, or letter of credit during or at the end of the
             256      registration term; and
             257          (iv) any other matters related to providing the bond, certificate, or letter of credit required
             258      under Subsection (7)(a).
             259          (c) The bond, certificate, or letter of credit shall be used as a protection against loss of
             260      advanced tuition, book fees, supply fees, or equipment fees:
             261          (i) collected by the school from a student or a student's parent, guardian, or sponsor prior
             262      to the completion of the program or courses for which it was collected; or
             263          (ii) for which the student is liable.
             264          (8) (a) The division cannot refuse acceptance of a registration statement that is tendered
             265      for filing and, based on a preliminary review, appears to be in compliance with Subsections (1),
             266      (2), and (6), accompanied by the required fee.
             267          (b) A statement is effective upon approval by the division or its designated officer in
             268      accordance with division rules.
             269          (c) The division may not register a program at a proprietary institution if it determines that
             270      the educational credential associated with the program represents the undertaking or completion
             271      of educational achievement that has not been undertaken and earned.
             272          (d) A certificate of registration is effective upon the date of issuance.
             273          (e) The responsibility of compliance is upon the proprietary school and not upon the
             274      division.
             275          (f) If it appears to the division that a statement on file may not be in compliance with this


             276      chapter, the division may advise the proprietary school as to the apparent deficiencies.
             277          (g) A new or amended statement may then be presented for filing by the proprietary
             278      school, accompanied by the required fee.
             279          (9) The acceptance of a registration statement, renewal statement, or amended registration
             280      statement and issuance of a certificate of registration shall not constitute, nor be represented by any
             281      person to constitute, an endorsement or approval of the proprietary school by either the division
             282      or the state.
             283          Section 9. Section 13-34-108 is enacted to read:
             284          13-34-108. Information required to be available -- Fair and ethical practices.
             285          It is a violation of this chapter for any institution or school, which is required to file a
             286      registration statement under this chapter, to offer postsecondary education in this state unless:
             287          (1) it makes available to all applicants, prior to enrollment, information that includes the
             288      following:
             289          (a) the school name, which shall be representative of the programs offered at the school,
             290      its address, and location;
             291          (b) the facilities, faculty, training equipment, and instructional programs of the school;
             292          (c) enrollment qualifications;
             293          (d) tuition, fees, and other charges and expenses, as well as financial assistance,
             294      cancellation, and tuition refund policies, including the posting of a surety bond, certificate of
             295      credit, or irrevocable letter of credit;
             296          (e) length of programs;
             297          (f) graduation requirements; and
             298          (g) awarding of appropriate educational credentials to indicate satisfactory course
             299      completions;
             300          (2) all recruiting documents, advertising, solicitations, publicity releases, and other public
             301      statements regarding the school are fair and accurate; and
             302          (3) all agents or sales representatives of the school are required by the school to comply
             303      with ethical practices prescribed by the division.
             304          Section 10. Section 13-34-109 is enacted to read:
             305          13-34-109. Discontinuance of operations -- Filing of transcripts.
             306          (1) If a proprietary school elects to discontinue its operations in this state, the proprietor


             307      or administrator of the school shall file with the division a copy of each student's grade transcript
             308      in either written or microfilm form, relating to all courses of instruction and all students enrolled
             309      in the school during the previous ten years.
             310          (2) The responsibility to file records under this section is enforceable by injunction issued
             311      by a court of competent jurisdiction in an action brought upon the request of the division or, on
             312      his own initiative, by the attorney general or by the county attorney of the county in which the
             313      proprietary school is or was operating.
             314          (3) The division shall maintain for at least ten years a file of all records received by it
             315      under this section.
             316          Section 11. Section 13-34-110 is enacted to read:
             317          13-34-110. Enforcement of contracts or agreements -- Rescission based on defective
             318      registration statement.
             319          (1) A proprietary school shall be unable to enforce in the courts of this state any contract
             320      or agreement relating to postsecondary education services in this state unless, at the time the
             321      contract or agreement was entered into, an effective registration statement was on file with the
             322      division and made accessible to every applicant at the time of admission to the school.
             323          (2) It is a violation of this chapter if a proprietary school or its agent:
             324          (a) fails to file an effective registration statement;
             325          (b) willfully omits from a registration statement provided under Section 13-34-107 any
             326      material statement of fact required by this chapter and applicable regulations; or
             327          (c) includes in a registration statement any material statement of fact that was known, or
             328      should have been known, to the proprietary school to be false, deceptive, inaccurate, or misleading.
             329          (3) A student who enrolled in a proprietary school, in reliance upon the school's
             330      registration statement, may rescind the contract or agreement of enrollment and obtain a refund
             331      from the school of all tuition, fees, and other charges paid to the school if the school or its agent
             332      committed a violation under Subsection (2).
             333          (4) A violation of this chapter is also a violation of Section 13-11-4 .
             334          Section 12. Section 13-34-111 is enacted to read:
             335          13-34-111. Referral of suspected violations -- Penalty.
             336          (1) The division may report any information concerning a possible violation of this chapter
             337      or of rules promulgated under this chapter to the attorney general, the county attorney, or district


             338      attorney of any county or prosecution district in which the activity is occurring or has occurred.
             339          (2) The attorney shall investigate the complaint and immediately prosecute or bring suit
             340      to enjoin an act determined to be a violation of the chapter or regulations.
             341          (3) (a) In addition to other penalties and remedies in this chapter, and in addition to its
             342      other enforcement powers under Section 13-2-6 , the division director may issue a cease and desist
             343      order and impose an administrative fine of up to $1,000 for each violation of this chapter.
             344          (b) All money received through administrative fines imposed under Subsection (3)(a) shall
             345      be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8 .
             346          (4) A willful violation of this chapter is a class B misdemeanor, except as otherwise
             347      provided in Subsection 13-34-201 (2).
             348          Section 13. Section 13-34-112 is enacted to read:
             349          13-34-112. Limitation of authority.
             350          Except for satisfying the criteria and standards for registration provided for in this chapter
             351      or by division rule, nothing in this chapter gives the division authority to regulate the content of
             352      individual courses or regulate the day-to-day operations of a proprietary educational institution.
             353          Section 14. Section 13-34-113 is enacted to read:
             354          13-34-113. Suspension, termination, or refusal to register.
             355          (1) The division may refuse to issue or renew a certificate of registration to operate or may
             356      initiate proceedings to terminate a certificate of registration to operate a postsecondary proprietary
             357      school if the school:
             358          (a) violates a rule adopted by the division under this chapter;
             359          (b) furnishes false, misleading, or incomplete information to the division, or fails to furnish
             360      information requested by the division; or
             361          (c) violates a commitment made in an application for a certificate of registration to operate
             362      the school.
             363          (2) Division staff may place reasonable limits upon a school's continued certificate of
             364      registration to operate if there are serious concerns about the school's ability to provide the training
             365      in the manner approved by the division and if limitation is warranted to protect the students'
             366      interests.
             367          (3) (a) Division staff may take interim action to suspend a school's certificate of
             368      registration to operate if there is substantive evidence indicating that the welfare of students is at


             369      risk through the school's noncompliance with rules adopted by the division.
             370          (b) Suspension may result in a termination action by the division under Subsection (1).
             371          Section 15. Section 13-34-114 is enacted to read:
             372          13-34-114. Consent to use of educational terms in business names.
             373          (1) For purposes of this section:
             374          (a) "Business name" means a name filed with the Division of Corporations and
             375      Commercial Code under:
             376          (i) Section 16-6a-401 ;
             377          (ii) Section 16-10a-401 ;
             378          (iii) Section 16-11-16 ;
             379          (iv) Section 42-2-6.6 ;
             380          (v) Section 48-2a-102 ; or
             381          (vi) Section 48-2c-106 .
             382          (b) "Educational term" means the term:
             383          (i) "university";
             384          (ii) "college"; or
             385          (iii) "institution."
             386          (2) If a statute listed in Subsection (1)(a) requires the written consent of the division to file
             387      a business name with the Division of Corporations and Commercial Code that includes an
             388      educational term, the division may consent to the use of an educational term in accordance with
             389      this statute.
             390          (3) The division shall consent to the use of an educational term in a business name if the
             391      person seeking to file the name:
             392          (a) is registered under this chapter;
             393          (b) is exempt from the chapter under Section 13-34-105 ; or
             394          (c) (i) is not engaged in educational activities; and
             395          (ii) does not represent that it is engaged in educational activities.
             396          (4) The division may withhold consent to use of an educational term in a business name
             397      if the person seeking to file the name:
             398          (a) offers, sells, or awards a degree or any other type of educational credential; and
             399          (b) fails to provide bona fide instruction through student-faculty interaction according to


             400      the standards and criteria established by the division under Subsection 13-34-104 (5).
             401          Section 16. Section 13-34-201 is enacted to read:
             402     
Part 2. Fraudulent Educational Credentials

             403          13-34-201. Fraudulent educational credentials.
             404          (1) A person may not use, give, or receive, or attempt or conspire to do so, in connection
             405      with a business, trade, profession, or occupation, a degree or other document which has been
             406      purchased, obtained, fraudulently or illegally issued, counterfeited, materially altered, or found,
             407      or which serves to evidence the undertaking or completion of scholastic achievement if the
             408      education has not been undertaken and attained.
             409          (2) A violation of this section is a class A misdemeanor.
             410          Section 17. Section 16-6a-401 is amended to read:
             411           16-6a-401. Corporate name.
             412          (1) The corporate name of a nonprofit corporation:
             413          (a) may, but need not contain:
             414          (i) the word "corporation," "incorporated," or "company"; or
             415          (ii) an abbreviation of "corporation," "incorporated," or "company";
             416          (b) may not contain any word or phrase that indicates or implies that it is organized for any
             417      purpose other than one or more of the purposes contained in Section 16-6a-301 and its articles of
             418      incorporation;
             419          (c) except as authorized by the division under Subsection (2), shall be distinguishable, as
             420      defined in Section 16-10a-401 , from:
             421          (i) the name of any domestic corporation incorporated in this state;
             422          (ii) the name of any foreign corporation authorized to conduct affairs in this state;
             423          (iii) the name of any domestic nonprofit corporation incorporated in this state;
             424          (iv) the name of any foreign nonprofit corporation authorized to conduct affairs in this
             425      state;
             426          (v) the name of any domestic limited liability company formed in this state;
             427          (vi) the name of any foreign limited liability company authorized to conduct affairs in this
             428      state;
             429          (vii) the name of any limited partnership formed or authorized to conduct affairs in this
             430      state;


             431          (viii) any name that is reserved under Section 16-6a-402 or 16-10a-402 ;
             432          (ix) the name of any entity that has registered its name under Section 42-2-5 ;
             433          (x) the name of any trademark or service mark registered by the division; or
             434          (xi) any assumed name filed under Section 42-2-5 ;
             435          (d) shall be, for purposes of recordation, either translated into English or transliterated into
             436      letters of the English alphabet if it is not in English;
             437          (e) without the written consent of the United States Olympic Committee, may not contain
             438      the words:
             439          (i) "Olympic";
             440          (ii) "Olympiad"; or
             441          (iii) "Citius Altius Fortius"; and
             442          (f) without the written consent of the [State Board of Regents] Division of Consumer
             443      Protection issued in accordance with Section [ 53B-5-114 ] 13-34-114 , may not contain the words:
             444          (i) "university";
             445          (ii) "college"; or
             446          (iii) "institute."
             447          (2) The division may authorize the use of the name applied for if:
             448          (a) the name is distinguishable from one or more of the names and trademarks described
             449      in Subsection (1)(c) that are on the division's records; or
             450          (b) if the applicant delivers to the division a certified copy of the final judgment of a court
             451      of competent jurisdiction establishing the applicant's right to use the name applied for in this state
             452      registered or reserved with the division pursuant to the laws of this state.
             453          (3) A corporation may use the name of another domestic or foreign corporation that is used
             454      in this state if:
             455          (a) the other corporation is incorporated or authorized to conduct affairs in this state; and
             456          (b) the proposed user corporation:
             457          (i) has merged with the other corporation;
             458          (ii) has been formed by reorganization of the other corporation; or
             459          (iii) has acquired all or substantially all of the assets, including the corporate name, of the
             460      other corporation.
             461          (4) (a) A nonprofit corporation may apply to the division for authorization to file its


             462      articles of incorporation under, or to register or reserve, a name that is not distinguishable upon
             463      the division's records from one or more of the names described in Subsection (1).
             464          (b) The division shall approve the application filed under Subsection (4)(a) if:
             465          (i) the other person whose name is not distinguishable from the name under which the
             466      applicant desires to file, or which the applicant desires to register or reserve:
             467          (A) consents to the filing, registration, or reservation in writing; and
             468          (B) submits an undertaking in a form satisfactory to the division to change its name to a
             469      name that is distinguishable from the name of the applicant; or
             470          (ii) the applicant delivers to the division a certified copy of the final judgment of a court
             471      of competent jurisdiction establishing the applicant's right to make the requested filing in this state
             472      under the name applied for.
             473          (5) Only names of corporations may contain the:
             474          (a) words "corporation," or "incorporated"; or
             475          (b) abbreviation "corp." or "inc."
             476          (6) The division may not issue a certificate of incorporation to any association violating
             477      the provisions of this section.
             478          Section 18. Section 16-10a-401 is amended to read:
             479           16-10a-401. Corporate name.
             480          (1) The name of a corporation:
             481          (a) except for the name of a depository institution as defined in Section 7-1-103 , must
             482      contain:
             483          (i) the word:
             484          (A) "corporation";
             485          (B) "incorporated"; or
             486          (C) "company";
             487          (ii) the abbreviation:
             488          (A) "corp.";
             489          (B) "inc."; or
             490          (C) "co."; or
             491          (iii) words or abbreviations of like import to the words or abbreviations listed in
             492      Subsections (1)(a)(i) and (ii) in another language;


             493          (b) may not contain language stating or implying that the corporation is organized for a
             494      purpose other than that permitted by:
             495          (i) Section 16-10a-301 ; and
             496          (ii) the corporation's articles of incorporation;
             497          (c) without the written consent of the United States Olympic Committee, may not contain
             498      the words:
             499          (i) "Olympic";
             500          (ii) "Olympiad"; or
             501          (iii) "Citius Altius Fortius"; and
             502          (d) without the written consent of the [State Board of Regents] Division of Consumer
             503      Protection issued in accordance with Section [ 53B-5-114 ] 13-34-114 , may not contain the words:
             504          (i) "university";
             505          (ii) "college"; or
             506          (iii) "institute."
             507          (2) Except as authorized by Subsections (3) and (4), the name of a corporation must be
             508      distinguishable, as defined in Subsection (5), upon the records of the division from:
             509          (a) the name of any domestic corporation incorporated in or foreign corporation authorized
             510      to transact business in this state;
             511          (b) the name of any domestic or foreign nonprofit corporation incorporated or authorized
             512      to transact business in this state;
             513          (c) the name of any domestic or foreign limited liability company formed or authorized
             514      to transact business in this state;
             515          (d) the name of any limited partnership formed or authorized to transact business in this
             516      state;
             517          (e) any name reserved or registered with the division for a corporation, limited liability
             518      company, or general or limited partnership, under the laws of this state; and
             519          (f) any business name, fictitious name, assumed name, trademark, or service mark
             520      registered by the division.
             521          (3) (a) A corporation may apply to the division for authorization to file its articles of
             522      incorporation under, or to register or reserve, a name that is not distinguishable upon its records
             523      from one or more of the names described in Subsection (2).


             524          (b) The division shall approve the application filed under Subsection (3)(a) if:
             525          (i) the other person whose name is not distinguishable from the name under which the
             526      applicant desires to file, or which the applicant desires to register or reserve:
             527          (A) consents to the filing, registration, or reservation in writing; and
             528          (B) submits an undertaking in a form satisfactory to the division to change its name to a
             529      name that is distinguishable from the name of the applicant; or
             530          (ii) the applicant delivers to the division a certified copy of the final judgment of a court
             531      of competent jurisdiction establishing the applicant's right to make the requested filing in this state
             532      under the name applied for.
             533          (4) A corporation may make a filing under the name, including the fictitious name, of
             534      another domestic or foreign corporation that is used or registered in this state if:
             535          (a) the other corporation is incorporated or authorized to transact business in this state; and
             536          (b) the filing corporation:
             537          (i) has merged with the other corporation; or
             538          (ii) has been formed by reorganization of the other corporation.
             539          (5) (a) A name is distinguishable from other names, trademarks, and service marks on the
             540      records of the division if it:
             541          (i) contains one or more different letters or numerals; or
             542          (ii) has a different sequence of letters or numerals from the other names on the division's
             543      records.
             544          (b) Differences which are not distinguishing are:
             545          (i) the words or abbreviations of the words:
             546          (A) "corporation";
             547          (B) "company";
             548          (C) "incorporated";
             549          (D) "limited partnership";
             550          (E) "L.P.";
             551          (F) "limited";
             552          (G) "ltd.";
             553          (H) "limited liability company";
             554          (I) "limited company";


             555          (J) "L.C."; or
             556          (K) "L.L.C.";
             557          (ii) the presence or absence of the words or symbols of the words "the," "and," or "a";
             558          (iii) differences in punctuation and special characters;
             559          (iv) differences in capitalization;
             560          (v) differences between singular and plural forms of words for a corporation:
             561          (A) incorporated in or authorized to do business in this state on or after May 4, 1998; or
             562          (B) that changes its name on or after May 4, 1998;
             563          (vi) differences in whether the letters or numbers immediately follow each other or are
             564      separated by one or more spaces if:
             565          (A) the sequence of letters or numbers is identical; and
             566          (B) the corporation:
             567          (I) is incorporated in or authorized to do business in this state on or after May 3, 1999; or
             568          (II) changes its name on or after May 3, 1999; or
             569          (vii) differences in abbreviations, for a corporation:
             570          (A) incorporated in or authorized to do business in this state on or after May 1, 2000; or
             571          (B) that changes its name on or after May 1, 2000.
             572          (c) The director of the division has the power and authority reasonably necessary to
             573      interpret and efficiently administer this section and to perform the duties imposed on the division
             574      by this section.
             575          (6) A name that implies that the corporation is an agency of this state or of any of its
             576      political subdivisions, if it is not actually such a legally established agency or subdivision, may not
             577      be approved for filing by the division.
             578          (7) (a) The requirements of Subsection (1)(d) do not apply to a corporation incorporated
             579      in or authorized to do business in this state on or before May 4, 1998, until December 31, 1998.
             580          (b) On or after January 1, 1999, any corporation incorporated in or authorized to do
             581      business in this state shall comply with the requirements of Subsection (1)(d).
             582          Section 19. Section 16-11-16 is amended to read:
             583           16-11-16. Corporate name.
             584          (1) The name of each professional corporation as set forth in its articles of incorporation:
             585          (a) shall contain the terms:


             586          (i) "professional corporation"; or
             587          (ii) "P.C.";
             588          (b) may not contain the words:
             589          (i) "incorporated"; or
             590          (ii) "inc.";
             591          (c) may not contain language stating or implying that the professional corporation is
             592      organized for a purpose other than that permitted by:
             593          (i) Section 16-11-6 ; and
             594          (ii) the professional corporation's articles of incorporation;
             595          (d) without the written consent of the United States Olympic Committee, may not contain
             596      the words:
             597          (i) "Olympic";
             598          (ii) "Olympiad"; or
             599          (iii) "Citius Altius Fortius"; and
             600          (e) without the written consent of the [State Board of Regents] Division of Consumer
             601      Protection in accordance with Section [ 53B-5-114 ] 13-34-114 , may not contain the words:
             602          (i) "university";
             603          (ii) "college"; or
             604          (iii) "institute."
             605          (2) The professional corporation may not imply by any word in the name that it is an
             606      agency of the state or of any of its political subdivisions.
             607          (3) A person, other than a professional corporation formed or registered under this chapter,
             608      may not use in its name in this state any of the terms:
             609          (a) "professional corporation"; or
             610          (b) "P.C."
             611          (4) Except as authorized by Subsection (5), the name of the professional corporation must
             612      be distinguishable, as defined in Subsection (6), upon the records of the division from:
             613          (a) the name of any domestic corporation incorporated in or foreign corporation authorized
             614      to transact business in this state;
             615          (b) the name of any domestic or foreign nonprofit corporation incorporated or authorized
             616      to transact business in this state;


             617          (c) the name of any domestic or foreign limited liability company formed or authorized
             618      to transact business in this state;
             619          (d) the name of any limited partnership formed or authorized to transact business in this
             620      state;
             621          (e) any name reserved or registered with the division for a corporation, limited liability
             622      company, or general or limited partnership, under the laws of this state; and
             623          (f) any business name, fictitious name, assumed name, trademark, or service mark
             624      registered by the division.
             625          (5) (a) A professional corporation may apply to the division for authorization to file its
             626      articles of incorporation under, or to register or reserve, a name that is not distinguishable upon
             627      its records from one or more of the names described in Subsection (4).
             628          (b) The division shall approve the application filed under Subsection (5)(a) if:
             629          (i) the other person whose name is not distinguishable from the name under which the
             630      applicant desires to file, or which the applicant desires to register or reserve:
             631          (A) consents to the filing, registration, or reservation in writing; and
             632          (B) submits an undertaking in a form satisfactory to the division to change its name to a
             633      name that is distinguishable from the name of the applicant; or
             634          (ii) the applicant delivers to the division a certified copy of the final judgment of a court
             635      of competent jurisdiction establishing the applicant's right to make the requested filing in this state
             636      under the name applied for.
             637          (6) (a) A name is distinguishable from other names, trademarks, and service marks
             638      registered with the division if it:
             639          (i) contains one or more different letters or numerals from other names upon the division's
             640      records; or
             641          (ii) has a different sequence of letter or numerals from the other names on the division's
             642      records.
             643          (b) The following differences are not distinguishable:
             644          (i) the words or abbreviations of the words:
             645          (A) "corporation";
             646          (B) "incorporated";
             647          (C) "company";


             648          (D) "limited partnership";
             649          (E) "limited";
             650          (F) "L.P.";
             651          (G) "Ltd.";
             652          (H) "limited liability company";
             653          (I) "limited company";
             654          (J) "L.C."; or
             655          (K) "L.L.C.";
             656          (ii) the presence or absence of the words or symbols of the words "the," "and," "a," or
             657      "plus";
             658          (iii) differences in punctuation and special characters;
             659          (iv) differences in capitalization; or
             660          (v) differences in abbreviations.
             661          (7) The director of the division shall have the power and authority reasonably necessary
             662      to interpret and efficiently administer this section and to perform the duties imposed upon the
             663      division by this section.
             664          Section 20. Section 42-2-6.6 is amended to read:
             665           42-2-6.6. Assumed name.
             666          (1) The assumed name:
             667          (a) may not contain any word or phrase that indicates or implies that the business is
             668      organized for any purpose other than one or more of the purposes contained in its application;
             669          (b) shall be distinguishable from any registered name or trademark of record in the offices
             670      of the Division of Corporations and Commercial Code, as defined in Subsection 16-10a-401 (5),
             671      except as authorized by the Division of Corporations and Commercial Code pursuant to Subsection
             672      (2);
             673          (c) without the written consent of the United States Olympic Committee, may not contain
             674      the words:
             675          (i) "Olympic";
             676          (ii) "Olympiad"; or
             677          (iii) "Citius Altius Fortius";
             678          (d) without the written consent of the [State Board of Regents] Division of Consumer


             679      Protection issued in accordance with Section [ 53B-5-114 ] 13-34-114 , may not contain the words:
             680          (i) "university";
             681          (ii) "college"; or
             682          (iii) "institute"; and
             683          (e) an assumed name authorized for use in this state on or after May 1, 2000, may not
             684      contain the words:
             685          (i) "incorporated";
             686          (ii) "inc."; or
             687          (iii) a variation of "incorporated" or "inc."
             688          (2) Notwithstanding Subsection (1)(e), an assumed name may contain a word listed in
             689      Subsection (1)(e) if the Division of Corporations and Commercial Code authorizes the use of the
             690      name by a corporation as defined in:
             691          (a) Subsection 16-6a-102 (26);
             692          (b) Subsection 16-6a-102 (33);
             693          (c) Subsection 16-10a-102 (11); or
             694          (d) Subsection 16-10a-102 (20).
             695          (3) The Division of Corporations and Commercial Code shall authorize the use of the
             696      name applied for if:
             697          (a) the name is distinguishable from one or more of the names and trademarks that are on
             698      the division's records; or
             699          (b) the applicant delivers to the division a certified copy of the final judgment of a court
             700      of competent jurisdiction establishing the applicant's right to use the name applied for in this state.
             701          (4) The assumed name, for purposes of recordation, shall be either translated into English
             702      or transliterated into letters of the English alphabet if it is not in English.
             703          (5) The Division of Corporations and Commercial Code may not approve an application
             704      for an assumed name to any person violating this section.
             705          (6) The director of the Division of Corporations and Commercial Code shall have the
             706      power and authority reasonably necessary to interpret and efficiently administer this section and
             707      to perform the duties imposed on the division by this section.
             708          (7) A name that implies by any word in the name that it is an agency of the state or of any
             709      of its political subdivisions, if it is not actually such a legally established agency, may not be


             710      approved for filing by the Division of Corporations and Commercial Code.
             711          (8) Section 16-10a-403 applies to this chapter.
             712          (9) (a) The requirements of Subsection (1)(d) do not apply to a person who filed a
             713      certificate of assumed and of true name with the Division of Corporations and Commercial Code
             714      on or before May 4, 1998, until December 31, 1998.
             715          (b) On or after January 1, 1999, any person who carries on, conducts, or transacts business
             716      in this state under an assumed name shall comply with the requirements of Subsection (1)(d).
             717          Section 21. Section 48-2a-102 is amended to read:
             718           48-2a-102. Name.
             719          (1) The name of each limited partnership as set forth in its certificate of limited
             720      partnership:
             721          (a) shall contain the terms:
             722          (i) "limited partnership";
             723          (ii) "limited";
             724          (iii) "L.P."; or
             725          (iv) "Ltd.";
             726          (b) may not contain the name of a limited partner unless:
             727          (i) it is the name of a general partner;
             728          (ii) it is the corporate name of a corporate general partner; or
             729          (iii) the business of the limited partnership had been carried on under that name before the
             730      admission of that limited partner;
             731          (c) may not contain:
             732          (i) the words:
             733          (A) "association";
             734          (B) "corporation"; or
             735          (C) "incorporated";
             736          (ii) any abbreviation of a word listed in this Subsection (1)(c); or
             737          (iii) any word or abbreviation that is of like import to the words listed in Subsection
             738      (1)(c)(i) in any other language;
             739          (d) without the written consent of the United States Olympic Committee, may not contain
             740      the words:


             741          (i) "Olympic";
             742          (ii) "Olympiad"; or
             743          (iii) "Citius Altius Fortius"; and
             744          (e) without the written consent of the [State Board of Regents] Division of Consumer
             745      Protection issued in accordance with Section [ 53B-5-114 ] 13-34-114 , may not contain the words:
             746          (i) "university";
             747          (ii) "college"; or
             748          (iii) "institute."
             749          (2) (a) A person or entity other than a limited partnership formed or registered under this
             750      title may not use in its name in this state any of the terms:
             751          (i) "limited";
             752          (ii) "limited partnership";
             753          (iii) "Ltd."; or
             754          (iv) "L.P."
             755          (b) Notwithstanding Subsection (2)(a):
             756          (i) a foreign corporation whose actual name includes the word "limited" or "Ltd." may use
             757      its actual name in this state if it also uses:
             758          (A) "corporation";
             759          (B) "incorporated"; or
             760          (C) any abbreviation of a word listed in this Subsection (2)(b)(i);
             761          (ii) a limited liability company may use in its name in this state the terms:
             762          (A) "limited";
             763          (B) "limited company";
             764          (C) "L.C.";
             765          (D) "L.L.C.";
             766          (E) "LC"; or
             767          (F) "LLC"; and
             768          (iii) a limited liability partnership may use the terms "limited liability partnership,"
             769      "L.L.P.," or "LLP" in the manner allowed in Section 48-1-45 .
             770          (3) Except as authorized by Subsection (4), the name of a limited partnership must be
             771      distinguishable as defined in Subsection (5) upon the records of the division from:


             772          (a) the name of any limited partnership formed or authorized to transact business in this
             773      state;
             774          (b) the corporate name of any corporation incorporated or authorized to transact business
             775      in this state;
             776          (c) any limited partnership name reserved under this chapter;
             777          (d) any corporate name reserved under Title 16, Chapter 10a, Utah Revised Business
             778      Corporation Act;
             779          (e) any fictitious name adopted by a foreign corporation or limited partnership authorized
             780      to transact business in this state because its real name is unavailable;
             781          (f) any corporate name of a not-for-profit corporation incorporated or authorized to
             782      transact business in this state; and
             783          (g) any assumed business name, trademark, or service mark registered by the division.
             784          (4) (a) A limited partnership may apply to the division for approval to file its certificate
             785      under, or to reserve, a name that is not distinguishable upon the division's records from one or
             786      more of the names described in Subsection (3).
             787          (b) The division shall approve of the name for which application is made under Subsection
             788      (4)(a) if:
             789          (i) the other person whose name is not distinguishable from the name under which the
             790      applicant desires to file:
             791          (A) consents to the filing in writing; and
             792          (B) submits an undertaking in a form satisfactory to the division to change its name to a
             793      name that is distinguishable from the name of the applicant; or
             794          (ii) the applicant delivers to the division a certified copy of the final judgment of a court
             795      of competent jurisdiction establishing the applicant's right to use in this state the name for which
             796      the application is made.
             797          (5) A name is distinguishable from other names, trademarks, and service marks registered
             798      with the division if it contains one or more different letters or numerals from other names upon the
             799      division's records.
             800          (6) The following differences are not distinguishing:
             801          (a) the terms:
             802          (i) "corporation";


             803          (ii) "incorporated";
             804          (iii) "company";
             805          (iv) "limited partnership";
             806          (v) "limited";
             807          (vi) "L.P."; or
             808          (vii) "Ltd.";
             809          (b) an abbreviation of a word listed in Subsection (6)(a);
             810          (c) the presence or absence of the words or symbols of the words "the," "and," "a," or
             811      "plus";
             812          (d) differences in punctuation and special characters;
             813          (e) differences in capitalization;
             814          (f) differences between singular and plural forms of words for a limited partnership:
             815          (i) formed in or registered as a foreign limited partnership in this state on or after May 4,
             816      1998; or
             817          (ii) that changes its name on or after May 4, 1998;
             818          (g) differences in whether the letters or numbers immediately follow each other or are
             819      separated by one or more spaces if:
             820          (i) the sequence of letters or numbers is identical; and
             821          (ii) the limited partnership:
             822          (A) is formed in or registered as a foreign limited partnership in this state on or after May
             823      3, 1999; or
             824          (B) changes its name on or after May 3, 1999; or
             825          (h) differences in abbreviations, for a limited partnership:
             826          (i) formed in or registered as a foreign limited partnership in this state on or after May 1,
             827      2000; or
             828          (ii) that changes its name on or after May 1, 2000.
             829          (7) The director of the division shall have the power and authority reasonably necessary
             830      to interpret and efficiently administer this section and to perform the duties imposed upon the
             831      division by this section.
             832          (8) A name that implies that the limited partnership is an agency of this state or any of its
             833      political subdivisions, if it is not actually such a legally established agency or subdivision, may not


             834      be approved for filing by the division.
             835          (9) (a) The requirements of Subsection (1)(e) do not apply to a limited partnership that is
             836      formed in or registered as a foreign limited partnership in this state on or before May 4, 1998, until
             837      December 31, 1998.
             838          (b) On or after January 1, 1999, any limited partnership formed in or registered as a foreign
             839      limited partnership in this state shall comply with the requirements of Subsection (1)(e).
             840          Section 22. Section 48-2c-106 is amended to read:
             841           48-2c-106. Name -- Exclusive right.
             842          (1) The name of each company as set forth in the articles of organization:
             843          (a) shall contain the terms:
             844          (i) "limited company";
             845          (ii) "limited liability company";
             846          (iii) "L.C." or "LC"; or
             847          (iv) "L.L.C." or "LLC";
             848          (b) may not contain:
             849          (i) the terms:
             850          (A) "association";
             851          (B) "corporation";
             852          (C) "incorporated";
             853          (D) "limited partnership";
             854          (E) "limited";
             855          (F) "L.P."; or
             856          (G) "Ltd."; or
             857          (ii) words or any abbreviation with a similar meaning in any other language;
             858          (c) without the written consent of the United States Olympic Committee, may not contain
             859      the words:
             860          (i) "Olympic";
             861          (ii) "Olympiad"; or
             862          (iii) "Citius Altius Fortius"; and
             863          (d) without the written consent of the [State Board of Regents] Division of Consumer
             864      Protection in accordance with Section [ 53B-5-114 ] 13-34-114 , may not contain the words:


             865          (i) "university";
             866          (ii) "college"; or
             867          (iii) "institute".
             868          (2) (a) A person, other than a company formed under this chapter or a foreign company
             869      authorized to transact business in this state, may not use in its name in this state any of the terms:
             870          (i) "limited liability company";
             871          (ii) "limited company";
             872          (iii) "L.L.C.";
             873          (iv) "L.C.";
             874          (v) "LLC"; or
             875          (vi) "LC".
             876          (b) Notwithstanding Subsection (2)(a):
             877          (i) a foreign corporation whose actual name includes the word "limited" or "Ltd." may use
             878      its actual name in this state if it also uses:
             879          (A) "corporation" or "corp."; or
             880          (B) "incorporated" or "inc."; and
             881          (ii) a limited liability partnership may use in its name the terms:
             882          (A) "limited liability partnership";
             883          (B) "L.L.P."; or
             884          (C) "LLP".
             885          (3) Except as authorized by Subsection (4), the name of a company must be
             886      distinguishable as defined in Subsection (5) upon the records of the division from:
             887          (a) the actual name, reserved name, or fictitious or assumed name of any entity registered
             888      with the division; or
             889          (b) any tradename, trademark, or service mark registered with the division.
             890          (4) (a) A company may apply to the division for approval to file its articles of organization
             891      under or to reserve a name that is not distinguishable upon the division's records from one or more
             892      of the names described in Subsection (3).
             893          (b) The division shall approve the name for which the company applies under Subsection
             894      (4)(a) if:
             895          (i) the other person whose name is not distinguishable from the name under which the


             896      applicant desires to file:
             897          (A) consents to the filing in writing; and
             898          (B) submits an undertaking in a form satisfactory to the division to change its name to a
             899      name that is distinguishable from the name of the applicant; or
             900          (ii) the applicant delivers to the division a certified copy of the final judgment of a court
             901      of competent jurisdiction establishing the applicant's right to use the name in this state.
             902          (5) A name is distinguishable from other names, trademarks, and service marks registered
             903      with the division if it contains one or more different words, letters, or numerals from other names
             904      upon the division's records.
             905          (6) The following differences are not distinguishing:
             906          (a) the terms:
             907          (i) "corporation";
             908          (ii) "incorporated";
             909          (iii) "company";
             910          (iv) "limited partnership";
             911          (v) "limited";
             912          (vi) "L.P." or "LP";
             913          (vii) "Ltd.";
             914          (viii) "limited liability company";
             915          (ix) "limited company";
             916          (x) "L.C." or "LC"; or
             917          (xi) "L.L.C." or "LLC";
             918          (b) an abbreviation of a word listed in Subsection (6)(a);
             919          (c) the presence or absence of the words or symbols of the words "the," "and," "a," or
             920      "plus";
             921          (d) differences in punctuation and special characters;
             922          (e) differences in capitalization; or
             923          (f) for a company that is formed in this state on or after May 4, 1998, or registered as a
             924      foreign company in this state on or after May 4, 1998, differences between singular and plural
             925      forms of words.
             926          (7) A name that implies that a company is an agency of this state or any of its political


             927      subdivisions, if it is not actually a legally established agency or political subdivision, may not be
             928      approved for filing by the division.
             929          Section 23. Repealer.
             930          This act repeals:
             931          Section 53B-5-101, Short title.
             932          Section 53B-5-102, Legislative intent.
             933          Section 53B-5-103, Definitions.
             934          Section 53B-5-104, Prohibited acts -- Exceptions -- Responsibilities of proprietary
             935      schools.
             936          Section 53B-5-105, Exempted institutions.
             937          Section 53B-5-106, Responsibilities of Board of Regents.
             938          Section 53B-5-107, Operation of proprietary schools -- Required registration
             939      statement -- Fee -- Denial of registration -- Registration does not constitute endorsement.
             940          Section 53B-5-108, Information required to be available -- Fair and ethical practices.
             941          Section 53B-5-109, Discontinuance of operations -- Filing of transcripts.
             942          Section 53B-5-110, Enforcement of contracts or agreements -- Rescission based on
             943      defective registration statement.
             944          Section 53B-5-111, Referral of suspected violations -- Penalty.
             945          Section 53B-5-112, Limitation of authority.
             946          Section 53B-5-113, Suspension, termination, or refusal to register.
             947          Section 53B-5-114, Consent to use of educational terms in business names.
             948          Section 53B-5-201, Fraudulent education credentials.
             949          Section 24. Effective date.
             950          This act takes effect on July 1, 2002.




Legislative Review Note
    as of 1-4-02 2:01 PM


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

Office of Legislative Research and General Counsel


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