This document includes Senate Committee Amendments incorporated into the bill on Mon, Mar 11, 2019 at 2:55 PM by estauffer.
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8 LONG TITLE
9 General Description:
10 This bill amends the Sales Representative Commission Payment Act.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ excludes a participant in a Ŝ→ [
14a the definition of
15 "sales representative"; and
16 ▸ makes technical and conforming changes.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 34-44-102, as last amended by Laws of Utah 2010, Chapter 379
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25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 34-44-102 is amended to read:
27 34-44-102. Definitions.
28 As used in this chapter:
29 (1) "Business relationship" means an agreement that governs the relationship of
30 principal and sales representative.
31 (2) "Commission" means:
32 (a) compensation:
33 (i) that accrues to a sales representative;
34 (ii) for payment by a principal; and
35 (iii) at a rate expressed as a percentage of the dollar amount of sales, orders, or profits;
36 or
37 (b) any other method of compensation agreed to between a sales representative and a
38 principal including:
39 (i) fees for services; and
40 (ii) a retainer.
41 (3) (a) " Ŝ→ [
42 (i) sells, distributes, or supplies for consideration a good or service through
43 participants:
44 (A) at different levels of distribution; or
45 (B) in accordance with a formula for compensating participants in whole or in part
46 based on:
47 (I) the sale of a good or service; and
48 (II) the recruitment of or the performance or action of another participant; and
49 (ii) (A) permits participants to recruit other participants to sell, distribute, or supply for
50 consideration the person's good or service; or
51 (B) provides for commission, cross-commissions, override commissions, bonuses,
52 refunds, dividends, or other consideration that is or may be paid as a result of:
53 (I) the sale of a good or service; or
54 (II) the recruitment of or the performance or action of another participant.
55 (b) As used in this Subsection (3), "participant" means an independent agent,
56 contractor, or distributor.
57 [
58 (a) engages in any of the following activities with regard to a product or service:
59 (i) manufactures;
60 (ii) produces;
61 (iii) imports;
62 (iv) sells; or
63 (v) distributes;
64 (b) establishes a business relationship with a sales representative to solicit orders for a
65 product or a service described in Subsection [
66 (c) agrees to compensate a sales representative, in whole or in part, by commission.
67 [
68 a person who enters into a business relationship with a principal:
69 (i) to solicit orders for a product or a service described in Subsection [
70 (ii) under which the person is compensated, in whole or in part, by commission.
71 (b) "Sales representative" does not include:
72 (i) an employee of a principal;
73 (ii) a person licensed under Title 31A, Insurance Code;
74 (iii) a person licensed under Title 41, Chapter 3, Part 2, Licensing;
75 (iv) a person licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices
76 Act;
77 (v) a person who provides a product or service under a business relationship with a
78 principal that is incident to the purchase or sale of real property; [
79 (vi) a person who places an order or purchases a product or service for that person's
80 own account for resale[
81 (vii) an independent agent, contractor, or distributor through whom a Ŝ→ [
82 marketing
83 [
84 between a sales representative and a principal, whether by:
85 (a) agreement;
86 (b) expiration of a time period; or
87 (c) exercise of a right of termination by either the principal or the sales representative.