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S.B. 210

             1     

AMENDMENTS RELATED TO USE OF BUSINESS NAMES

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Todd Weiler

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to conducting business under an assumed name
             10      and addresses rights to use an assumed name.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies a notice required on the certificate filed to use an assumed name;
             14          .    repeals a citation providing common law and other protections;
             15          .    creates a presumption that if a person registers an assumed name with the Division
             16      of Corporations and Commercial Code, the person has certain rights concerning the
             17      name; and
             18          .    makes technical changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          42-2-5, as last amended by Laws of Utah 2010, Chapter 43
             26          42-2-6.6, as last amended by Laws of Utah 2010, Chapter 218
             27          42-2-9, as last amended by Laws of Utah 2002, Chapter 318


             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 42-2-5 is amended to read:
             31           42-2-5. Certificate of assumed and of true name -- Contents -- Execution -- Filing
             32      -- Notice -- Data collection.
             33          (1) For purposes of this section, "filed" means the Division of Corporations and
             34      Commercial Code has:
             35          (a) received and approved, as to form, a document submitted under this chapter; and
             36          (b) marked on the face of the document a stamp or seal indicating:
             37          (i) the time of day and date of approval;
             38          (ii) the name of the division; and
             39          (iii) the division director's signature and division seal, or facsimiles of the signature or
             40      seal.
             41          (2) A person who carries on, conducts, or transacts business in this state under an
             42      assumed name, whether that business is carried on, conducted, or transacted as an individual,
             43      association, partnership, corporation, or otherwise, shall file with the Division of Corporations
             44      and Commercial Code a certificate setting forth:
             45          (a) the name under which the business is, or is to be carried on, conducted, or
             46      transacted;
             47          (b) the full true name, or names, of the person owning, and the person carrying on,
             48      conducting, or transacting the business; and
             49          (c) the location of the principal place of business, and the street address of the person.
             50          (3) A certificate filed under this section shall be:
             51          (a) executed by the person owning, and the person carrying on, conducting, or
             52      transacting the business;
             53          (b) filed not later than 30 days after the time of commencing to carry on, conduct, or
             54      transact the business; and
             55          (c) submitted in a machine printed format.
             56          (4) A certificate filed with the Division of Corporations and Commercial Code under
             57      this chapter shall include the following notice in a conspicuous place on the face [thereof] of
             58      the notice:


             59          NOTICE - THE FILING OF THIS APPLICATION AND ITS APPROVAL BY THE
             60      DIVISION OF CORPORATIONS AND COMMERCIAL CODE DOES NOT AUTHORIZE
             61      THE USE IN THE STATE OF UTAH OF AN ASSUMED NAME IN VIOLATION OF THE
             62      RIGHTS OF ANOTHER UNDER FEDERAL[,] OR STATE[, OR COMMON] LAW (SEE
             63      UTAH CODE ANN. SECTIONS 42-2-5 ET SEQ., BUT MAY PROVIDE PROTECTIONS
             64      OF YOUR ASSUMED NAME FROM UNAUTHORIZED USE).
             65          (5) (a) A certificate filed under this section shall include a portion that allows the
             66      person filing the form to voluntarily disclose the gender and race of one or more owners of the
             67      entity for which the filing is made.
             68          (b) Race shall be indicated under Subsection (5)(a) by selecting from the categories of
             69      race listed in 15 U.S.C. Sec. 631(f).
             70          (c) A person is not required to provide information under Subsection (5)(a) concerning
             71      the gender or race of one or more owners of the entity for which the filing is made.
             72          (d) (i) The Division of Corporations and Commercial Code shall compile information
             73      concerning the gender or race included on certificates filed with the Division of Corporations
             74      and Commercial Code.
             75          (ii) Information compiled by the Division of Corporations and Commercial Code under
             76      Subsection (5)(d)(i) may be compiled in a manner determined by the Division of Corporations
             77      and Commercial Code by rules made pursuant to Title 63G, Chapter 3, Utah Administrative
             78      Rulemaking Act.
             79          Section 2. Section 42-2-6.6 is amended to read:
             80           42-2-6.6. Assumed name.
             81          (1) The assumed name:
             82          (a) may not contain any word or phrase that indicates or implies that the business is
             83      organized for any purpose other than one or more of the purposes contained in its application;
             84          (b) shall be distinguishable from any registered name or trademark of record in the
             85      offices of the Division of Corporations and Commercial Code, as defined in Subsection
             86      16-10a-401 (5), except as authorized by the Division of Corporations and Commercial Code
             87      pursuant to Subsection (2);
             88          (c) without the written consent of the United States Olympic Committee, may not
             89      contain the words:


             90          (i) "Olympic";
             91          (ii) "Olympiad"; or
             92          (iii) "Citius Altius Fortius";
             93          (d) without the written consent of the Division of Consumer Protection issued in
             94      accordance with Section 13-34-114 , may not contain the words:
             95          (i) "university";
             96          (ii) "college"; or
             97          (iii) "institute" or "institution"; and
             98          (e) an assumed name authorized for use in this state on or after May 1, 2000, may not
             99      contain the words:
             100          (i) "incorporated";
             101          (ii) "inc."; or
             102          (iii) a variation of "incorporated" or "inc."
             103          (2) Notwithstanding Subsection (1)(e), an assumed name may contain a word listed in
             104      Subsection (1)(e) if the Division of Corporations and Commercial Code authorizes the use of
             105      the name by a corporation as defined in:
             106          (a) Subsection 16-6a-102 (25);
             107          (b) Subsection 16-6a-102 (34);
             108          (c) Subsection 16-10a-102 (11); or
             109          (d) Subsection 16-10a-102 (20).
             110          (3) The Division of Corporations and Commercial Code shall authorize the use of the
             111      name applied for if:
             112          (a) the name is distinguishable from one or more of the names and trademarks that are
             113      on the division's records; or
             114          (b) the applicant delivers to the division a certified copy of the final judgment of a
             115      court of competent jurisdiction establishing the applicant's right to use the name applied for in
             116      this state.
             117          (4) The assumed name, for purposes of recordation, shall be either translated into
             118      English or transliterated into letters of the English alphabet if it is not in English.
             119          (5) The Division of Corporations and Commercial Code may not approve an
             120      application for an assumed name to any person violating this section.


             121          (6) The director of the Division of Corporations and Commercial Code shall have the
             122      power and authority reasonably necessary to interpret and efficiently administer this section
             123      and to perform the duties imposed on the division by this section.
             124          (7) A name that implies by any word in the name that it is an agency of the state or of
             125      any of its political subdivisions, if it is not actually such a legally established agency, may not
             126      be approved for filing by the Division of Corporations and Commercial Code.
             127          (8) [Section] Subsections 16-10a-403 (1) and (3) [applies] apply to this chapter.
             128          (9) (a) The requirements of Subsection (1)(d) do not apply to a person who filed a
             129      certificate of assumed and of true name with the Division of Corporations and Commercial
             130      Code on or before May 4, 1998, until December 31, 1998.
             131          (b) On or after January 1, 1999, any person who carries on, conducts, or transacts
             132      business in this state under an assumed name shall comply with the requirements of Subsection
             133      (1)(d).
             134          Section 3. Section 42-2-9 is amended to read:
             135           42-2-9. Corporate names, limited liability company names, and trademark,
             136      service mark, and trade name rights not affected.
             137          (1) This chapter does not affect or apply to any corporation organized under the laws of
             138      any state if it does business under its true corporate name.
             139          (2) (a) This chapter does not affect the statutory [or common law] trademark, service
             140      mark, or trade name rights granted by state or federal statute.
             141          (b) An act listed in Subsection (2)(c) of itself does not authorize the use in this state of
             142      an assumed name in violation of the rights of another as established under:
             143          (i) this chapter;
             144          (ii) Title 70, Chapter 3a, Registration and Protection of Trademarks and Service Marks
             145      Act;
             146          (iii) the state law relating to names of corporations, partnerships, and other legal
             147      business entities; or
             148          (iv) the federal Trademark Act of 1946, 15 U.S.C. Section 1051 et seq.[; or]
             149          [(v) the common law, including rights in a trade name.]
             150          (c) Subsection (2)(b) applies to:
             151          (i) a filing under this chapter;


             152          (ii) an approval by the Division of Corporations and Commercial Code pursuant to this
             153      chapter; or
             154          (iii) the use of an assumed name.
             155          (3) This chapter does not affect or apply to any limited liability company doing
             156      business in this state under its true name.
             157          (4) Notwithstanding the other provisions of this section, if a person registers an
             158      assumed name with the Division of Corporations and Commercial Code pursuant to this
             159      chapter, and maintains the registration, the person is presumed to have use of the assumed
             160      name that is superior to another person's use of that name, unless the other person can
             161      demonstrate a superior right to use the name under trademark, service mark, or trade name
             162      rights granted by state or federal statute before the day on which the Division of Corporations
             163      and Commercial Code registers the assumed name.




Legislative Review Note
    as of 2-19-13 10:20 AM


Office of Legislative Research and General Counsel


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