Senator Curtis S. Bramble proposes the following substitute bill:


1     
CONSUMER LENDING AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Brad M. Daw

5     
Senate Sponsor: Curtis S. Bramble

6     Cosponsor:
Melissa G. Ballard

7     

8     LONG TITLE
9     General Description:
10          This bill amends Title 7, Chapter 23, Check Cashing and Deferred Deposit Lending
11     Registration Act, Title 12, Collection Agencies, and Title 78B, Chapter 6, Part 3,
12     Contempt.
13     Highlighted Provisions:
14          This bill:
15          ▸     amends registration requirements for deferred deposit lenders;
16          ▸     amends reporting requirements for deferred deposit lenders;
17          ▸     amends operational requirements for deferred deposit lenders;
18          ▸     amends reporting requirements for the Commissioner of Financial Institutions
19     regarding deferred deposit lenders;
20          ▸     amends provisions relating to bail bonds;
21          ▸     amends provisions related to damages to party aggrieved;
22          ▸     permits a third party debt collection agency that accepts a financial transaction card
23     for the transaction of business to charge a convenience fee under certain conditions;
24     and
25          ▸     makes technical and conforming changes.
26     Money Appropriated in this Bill:
27          None
28     Other Special Clauses:
29          This bill provides a coordination clause.
30     Utah Code Sections Affected:
31     AMENDS:
32          7-23-201, as last amended by Laws of Utah 2017, Chapter 37
33          7-23-401, as last amended by Laws of Utah 2017, Chapter 37
34          7-23-503, as last amended by Laws of Utah 2012, Chapter 323
35          12-1-11, as enacted by Laws of Utah 2010, Chapter 350
36          78B-6-306, as last amended by Laws of Utah 2014, Chapter 268
37          78B-6-311, as last amended by Laws of Utah 2014, Chapter 268
38     Utah Code Sections Affected by Coordination Clause:
39          13-38a-401, Utah Code Annotated 1953
40     

41     Be it enacted by the Legislature of the state of Utah:
42          Section 1. Section 7-23-201 is amended to read:
43          7-23-201. Registration -- Rulemaking.
44          (1) (a) It is unlawful for a person to engage in the business of cashing checks or the
45     business of deferred deposit lending in Utah or with a Utah resident unless the person:
46          (i) registers with the department in accordance with this chapter; and
47          (ii) maintains a valid registration.
48          (b) It is unlawful for a person to operate a mobile facility in this state to engage in the
49     business of:
50          (i) cashing checks; or
51          (ii) deferred deposit lending.
52          (c) An officer or employee of a person required to register under Subsection (1)(a) is
53     not required to register if the person for whom the individual is an officer or employee is
54     registered.
55          (2) (a) A registration and a renewal of a registration expires on December 31 of each
56     year unless on or before that date the person renews the registration.
57          (b) To register under this section, a person shall:
58          (i) pay an original registration fee established under Subsection 7-1-401(8);
59          (ii) submit a registration statement containing the information described in Subsection
60     (2)(d);
61          (iii) submit evidence satisfactory to the commissioner that the person is authorized to
62     conduct business in this state as a domestic or foreign entity pursuant to filings with the
63     Division of Corporations and Commercial Code under Title 16, Corporations, or Title 48,
64     Unincorporated Business Entity Act; and
65          (iv) if the person engages in the business of deferred deposit lending, submit evidence
66     satisfactory to the commissioner that the person is registered with the nationwide database.
67          (c) To renew a registration under this section, a person shall:
68          (i) pay the annual fee established under Subsection 7-1-401(5);
69          (ii) submit a renewal statement containing the information described in Subsection
70     (2)(d);
71          (iii) submit evidence satisfactory to the commissioner that the person is authorized to
72     conduct business in this state as a domestic or foreign entity pursuant to filings with the
73     Division of Corporations and Commercial Code under Title 16, Corporations, or Title 48,
74     Unincorporated Business Entity Act;
75          (iv) if the person engages in the business of deferred deposit lending, submit evidence
76     satisfactory to the commissioner that the person is registered with the nationwide database; and
77          (v) if the person engages in the business of deferred deposit lending, submit an
78     operations statement containing the information described in [Subsection] Subsections (2)(e)
79     and (f).
80          (d) A registration or renewal statement shall state:
81          (i) the name of the person;
82          (ii) the name in which the business will be transacted if different from that required in
83     Subsection (2)(d)(i);
84          (iii) the address of the person's principal business office, which may be outside this
85     state;
86          (iv) the addresses of all offices in this state at which the person conducts the business
87     of:
88          (A) cashing checks; or
89          (B) deferred deposit lending;
90          (v) if the person conducts the business of cashing checks or the business of deferred
91     deposit lending in this state but does not maintain an office in this state, a brief description of
92     the manner in which the business is conducted;
93          (vi) the name and address in this state of a designated agent upon whom service of
94     process may be made;
95          (vii) whether there is a conviction of a crime:
96          (A) involving an act of fraud, dishonesty, breach of trust, or money laundering; and
97          (B) with respect to that person, an officer, director, manager, operator, or principal of
98     that person, or an employee of that person engaged in the business described in this chapter;
99     and
100          (viii) any other information required by the rules of the department.
101          (e) An operations statement required for a deferred deposit lender to renew a
102     registration shall state for the immediately preceding calendar year:
103          (i) the average principal amount of the deferred deposit loans extended by the deferred
104     deposit lender;
105          (ii) for deferred deposit loans paid in full, the average number of days a deferred
106     deposit loan is outstanding for the duration of time that interest is charged;
107          [(iii) the minimum and maximum dollar amount of interest and fees charged by the
108     deferred deposit lender for a deferred deposit loan of $100 with a loan term of seven days;]
109          [(iv)] (iii) the total number of deferred deposit loans rescinded by the deferred deposit
110     lender at the request of the customer pursuant to Subsection 7-23-401(3)(b);
111          [(v)] (iv) of the persons to whom the deferred deposit lender extended a deferred
112     deposit loan, the percentage that entered into an extended payment plan under Section
113     7-23-403;
114          [(vi)] (v) the total dollar amount of deferred deposit loans rescinded by the deferred
115     deposit lender at the request of the customer pursuant to Subsection 7-23-401(3)(b);
116          [(vii)] (vi) the average annual percentage rate charged on deferred deposit loans;
117          (vii) the range of annual percentage rates charged on deferred deposit loans;
118          (viii) the average dollar amount of extended payment plans entered into under Section
119     7-23-403 by the deferred deposit lender;
120          (ix) the number of deferred deposit loans carried to the maximum 10 weeks after the
121     day on which the deferred deposit loan is extended;
122          (x) the total dollar amount of deferred deposit loans carried to the maximum 10 weeks
123     after the day on which the deferred deposit loan is extended;
124          (xi) the number of deferred deposit loans not paid in full at the end of 10 weeks after
125     the day on which the deferred deposit loan is extended;
126          (xii) the total dollar amount of deferred deposit loans not paid in full at the end of 10
127     weeks after the day on which the deferred deposit loan is extended;
128          (xiii) the percentage of deferred deposit loans against which the deferred deposit lender
129     initiates civil action to collect on the deferred deposit loan; and
130          (xiv) for the civil actions described in Subsection (2)(e)(xiii), the percentage of those
131     civil actions whose deferred deposit loans have the following payment history:
132          (A) no payments;
133          (B) one payment;
134          (C) two payments;
135          (D) three payments;
136          (E) four payments;
137          (F) five payments;
138          (G) six payments;
139          (H) seven payments;
140          (I) eight payments;
141          (J) nine payments; and
142          (K) 10 or more payments.
143          (f) In addition to the information in Subsection (2)(e), an operations statement required
144     for a deferred deposit lender to renew a registration shall state for the immediately preceding
145     calendar year:
146          (i) the total number of deferred deposit loans extended by the deferred deposit lender;
147          (ii) the total dollar amount of deferred deposit loans extended by the deferred deposit
148     lender;
149          (iii) the total number of individuals to whom the deferred deposit lender extended a
150     deferred deposit loan; and
151          (iv) the percentage of deferred deposit loans not repaid according to the terms of the
152     loan.
153          [(f)] (g) The commissioner may by rule, made in accordance with Title 63G, Chapter 3,
154     Utah Administrative Rulemaking Act, provide for the transition of persons registering with the
155     nationwide database.
156          (3) (a) Information provided by a deferred deposit lender under [Subsection]
157     Subsections (2)(e) and (f) is:
158          [(a)] (i) confidential in accordance with Section 7-1-802; and
159          [(b)] (ii) not subject to Title 63G, Chapter 2, Government Records Access and
160     Management Act.
161          (b) The department shall:
162          (i) only use information a deferred deposit lender provides to the department under
163     Subsection (2)(f) to determine compliance with this chapter; and
164          (ii) delete or otherwise destroy information a deferred deposit lender provides to the
165     department under Subsection (2)(f) within two years after the day on which the deferred
166     deposit lender provides the information.
167          (4) (a) The commissioner may impose an administrative fine determined under
168     Subsection (4)(b) on a person if:
169          (i) the person is required to be registered under this chapter;
170          (ii) the person fails to register or renew a registration in accordance with this chapter;
171          (iii) the department notifies the person that the person is in violation of this chapter for
172     failure to be registered; and
173          (iv) the person fails to register within 30 days after the day on which the person
174     receives the notice described in Subsection (4)(a)(iii).
175          (b) Subject to Subsection (4)(c), the administrative fine imposed under this section is:
176          (i) $500 if the person:
177          (A) has no office in this state at which the person conducts the business of:
178          (I) cashing checks; or
179          (II) deferred deposit lending; or
180          (B) has one office in this state at which the person conducts the business of:
181          (I) cashing checks; or
182          (II) deferred deposit lending; or
183          (ii) if the person has two or more offices in this state at which the person conducts the
184     business of cashing checks or the business of deferred deposit lending, $500 for each office at
185     which the person conducts the business of:
186          (A) cashing checks; or
187          (B) deferred deposit lending.
188          (c) The commissioner may reduce or waive a fine imposed under this Subsection (4) if
189     the person shows good cause.
190          (5) If the information in a registration, renewal, or operations statement required under
191     Subsection (2) becomes inaccurate after filing, a person is not required to notify the department
192     until:
193          (a) that person is required to renew the registration; or
194          (b) the department specifically requests earlier notification.
195          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
196     department may make rules consistent with this section providing for:
197          (a) the form, content, and filing of a registration and renewal statement described in
198     Subsection (2)(d); and
199          (b) the form and filing of an operations statement described in Subsection (2)(e).
200          (7) A deferred deposit loan that is made by a person who is required to be registered
201     under this chapter but who is not registered is void, and the person may not collect, receive, or
202     retain any principal or other interest or fees in connection with the deferred deposit loan.
203          (8) (a) At the time a person registers under this section, the person shall disclose a
204     conviction of a crime described in Subsection (2)(d)(vii) that is:
205          (i) known to the person; or
206          (ii) included in:
207          (A) a Utah Bureau of Criminal Identification report; or
208          (B) a background check acceptable to the department that provides information similar
209     to a Utah Bureau of Criminal Identification report.
210          (b) To comply with Subsection (8)(a), a person registered under this chapter shall, for
211     each individual described in Subsection (2)(d)(vii):
212          (i) obtain a Utah Bureau of Criminal Identification report; or
213          (ii) conduct a background check acceptable to the commissioner that provides
214     information similar to a Utah Bureau of Criminal Identification report.
215          (c) A person registered under this section shall keep a record of the information
216     described in Subsection (8)(b) for the time period required by the department by rule made in
217     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
218          Section 2. Section 7-23-401 is amended to read:
219          7-23-401. Operational requirements for deferred deposit loans.
220          (1) If a deferred deposit lender extends a deferred deposit loan, the deferred deposit
221     lender shall:
222          (a) post in a conspicuous location on its premises that can be viewed by a person
223     seeking a deferred deposit loan:
224          (i) a complete schedule of any interest or fees charged for a deferred deposit loan that
225     states the interest and fees using dollar amounts;
226          (ii) a number the person can call to make a complaint to the department regarding the
227     deferred deposit loan; and
228          (iii) a list of states where the deferred deposit lender is registered or authorized to offer
229     deferred deposit loans through the Internet or other electronic means;
230          (b) enter into a written contract for the deferred deposit loan;
231          (c) conspicuously disclose in the written contract:
232          (i) that under Subsection (3)(a), a person receiving a deferred deposit loan may make a
233     partial payment in increments of at least $5 on the principal owed on the deferred deposit loan
234     without incurring additional charges above the charges provided in the written contract;
235          (ii) that under Subsection (3)(b), a person receiving a deferred deposit loan may rescind
236     the deferred deposit loan on or before 5 p.m. of the next business day without incurring any
237     charges;
238          (iii) that under Subsection (4)(b), the deferred deposit loan may not be rolled over
239     without the person receiving the deferred deposit loan requesting the rollover of the deferred
240     deposit loan;
241          (iv) that under Subsection (4)(c), the deferred deposit loan may not be rolled over if the
242     rollover requires the person to pay the amount owed by the person under the deferred deposit
243     loan in whole or in part more than 10 weeks after the day on which the deferred deposit loan is
244     executed; and
245          (v) (A) the name and address of a designated agent required to be provided the
246     department under Subsection 7-23-201(2)(d)(vi); and
247          (B) a statement that service of process may be made to the designated agent;
248          (d) provide the person seeking the deferred deposit loan:
249          (i) a copy of the written contract described in Subsection (1)(c); and
250          (ii) written notice that the person seeking the deferred deposit loan is eligible to enter
251     into an extended payment plan described in Section 7-23-403;
252          (e) orally review with the person seeking the deferred deposit loan the terms of the
253     deferred deposit loan including:
254          (i) the amount of any interest rate or fee;
255          (ii) the date on which the full amount of the deferred deposit loan is due;
256          (iii) that under Subsection (3)(a), a person receiving a deferred deposit loan may make
257     a partial payment in increments of at least $5 on the principal owed on the deferred deposit
258     loan without incurring additional charges above the charges provided in the written contract;
259          (iv) that under Subsection (3)(b), a person receiving a deferred deposit loan may
260     rescind the deferred deposit loan on or before 5 p.m. of the next business day without incurring
261     any charges;
262          (v) that under Subsection (4)(b), the deferred deposit loan may not be rolled over
263     without the person receiving the deferred deposit loan requesting the rollover of the deferred
264     deposit loan; and
265          (vi) that under Subsection (4)(c), the deferred deposit loan may not be rolled over if the
266     rollover requires the person to pay the amount owed by the person under the deferred deposit
267     loan in whole or in part more than 10 weeks after the day on which the deferred deposit loan is
268     executed;
269          (f) comply with the following as in effect on the date the deferred deposit loan is
270     extended:
271          (i) Truth in Lending Act, 15 U.S.C. Sec. 1601 et seq., and its implementing federal
272     regulations;
273          (ii) Equal Credit Opportunity Act, 15 U.S.C. Sec. 1691, and its implementing federal
274     regulations;
275          (iii) Bank Secrecy Act, 12 U.S.C. Sec. 1829b, 12 U.S.C. Sec. 1951 through 1959, and
276     31 U.S.C. Sec. 5311 through 5332, and its implementing regulations; and
277          (iv) Title 70C, Utah Consumer Credit Code;
278          (g) in accordance with Subsection (6), make an inquiry to determine whether a person
279     attempting to receive a deferred deposit loan has the ability to repay the deferred deposit loan
280     in the ordinary course, which may include rollovers or extended payment plans as allowed
281     under this chapter;
282          (h) in accordance with Subsection (7), receive a signed acknowledgment from a person
283     attempting to receive a deferred deposit loan that the person has the ability to repay the
284     deferred deposit loan, which may include rollovers or extended payment plans as allowed by
285     this chapter; and
286          (i) report the original loan amount, payment in full, or default of a deferred deposit
287     loan to a consumer reporting agency, as defined in 15 U.S.C. Sec. 1681a, in accordance with
288     procedures established by the consumer reporting agency.
289          (2) If a deferred deposit lender extends a deferred deposit loan through the Internet or
290     other electronic means, the deferred deposit lender shall provide the information described in
291     Subsection (1)(a) to the person receiving the deferred deposit loan:
292          (a) in a conspicuous manner; and
293          (b) prior to the person entering into the deferred deposit loan.
294          (3) A deferred deposit lender that engages in a deferred deposit loan shall permit a
295     person receiving a deferred deposit loan to:
296          (a) make partial payments in increments of at least $5 on the principal owed on the
297     deferred deposit loan at any time prior to maturity without incurring additional charges above
298     the charges provided in the written contract; and
299          (b) rescind the deferred deposit loan without incurring any charges by returning the
300     deferred deposit loan amount to the deferred deposit lender on or before 5 p.m. the next
301     business day following the deferred deposit loan transaction.
302          (4) A deferred deposit lender that engages in a deferred deposit loan may not:
303          (a) collect additional interest on a deferred deposit loan with an outstanding principal
304     balance 10 weeks after the day on which the deferred deposit loan is executed;
305          (b) roll over a deferred deposit loan without the person receiving the deferred deposit
306     loan requesting the rollover of the deferred deposit loan;
307          (c) roll over a deferred deposit loan if the rollover requires a person to pay the amount
308     owed by the person under a deferred deposit loan in whole or in part more than 10 weeks from
309     the day on which the deferred deposit loan is first executed;
310          (d) extend a new deferred deposit loan to a person on the same business day that the
311     person makes a payment on another deferred deposit loan if:
312          (i) the payment results in the principal of that deferred deposit loan being paid in full;
313     and
314          (ii) the combined terms of the original deferred deposit loan and the new deferred
315     deposit loan total more than 10 weeks of consecutive interest;
316          (e) avoid the limitations of Subsections (4)(a) and (4)(c) by extending a new deferred
317     deposit loan whose proceeds are used to satisfy or refinance any portion of an existing deferred
318     deposit loan;
319          (f) threaten to use or use the criminal process in any state to collect on the deferred
320     deposit loan;
321          (g) in connection with the collection of money owed on a deferred deposit loan,
322     communicate with a person who owes money on a deferred deposit loan at the person's place of
323     employment if the person or the person's employer communicates, orally or in writing, to the
324     deferred deposit lender that the person's employer prohibits the person from receiving these
325     communications; [or]
326          (h) modify by contract the venue provisions in Title 78B, Chapter 3, Actions and
327     Venue[.]; or
328          (i) avoid the requirements of Subsection 7-23-403(1)(c) by extending an
329     interest-bearing loan within seven calendar days before the day on which the 10-week period
330     ends.
331          (5) Notwithstanding Subsections (4)(a) and (f), a deferred deposit lender that is the
332     holder of a check used to obtain a deferred deposit loan that is dishonored may use the
333     remedies and notice procedures provided in Chapter 15, Dishonored Instruments, except that
334     the issuer, as defined in Section 7-15-1, of the check may not be:
335          (a) asked by the holder to pay the amount described in Subsection 7-15-1(6)(a)(iii) as a
336     condition of the holder not filing a civil action; or
337          (b) held liable for the damages described in Subsection 7-15-1(7)(b)(vi).
338          (6) (a) The inquiry required by Subsection (1)(g) applies solely to the initial period of a
339     deferred deposit loan transaction with a person and does not apply to any rollover or extended
340     payment plan of a deferred deposit loan.
341          (b) Subject to Subsection (6)(c), a deferred deposit lender is in compliance with
342     Subsection (1)(g) if the deferred deposit lender, at the time of the initial period of the deferred
343     deposit loan transaction:
344          (i) obtains one of the following regarding the person seeking the deferred deposit loan:
345          (A) a consumer report, as defined in 15 U.S.C. Sec. 1681a, from a consumer reporting
346     agency, as defined in 15 U.S.C. Sec. 1681a; or
347          (B) written proof or verification of income from the person seeking the deferred
348     deposit loan; or
349          (ii) relies on the prior repayment history with the deferred deposit lender from the
350     records of the deferred deposit lender.
351          (c) If a person seeking a deferred deposit loan has not previously received a deferred
352     deposit loan from that deferred deposit lender, to be in compliance with Subsection (1)(g), the
353     deferred deposit lender, at the time of the initial period of the deferred deposit loan transaction,
354     shall obtain a consumer report, as defined in 15 U.S.C. Sec. 1681a, from a consumer reporting
355     agency, as defined in 15 U.S.C. Sec. 1681a.
356          (7) A deferred deposit lender is in compliance with Subsection (1)(h) if the deferred
357     deposit lender obtains from the person seeking the deferred deposit loan a signed
358     acknowledgment that is in 14-point bold font, that the person seeking the deferred deposit loan
359     has:
360          (a) reviewed the payment terms of the deferred deposit loan agreement;
361          (b) received a disclosure that a deferred deposit loan may not be rolled over if the
362     rollover requires the person to pay the amount owed by the person under the deferred deposit
363     loan in whole or in part more than 10 weeks after the day on which the deferred deposit loan is
364     first executed;
365          (c) received a disclosure explaining the extended payment plan options; and
366          (d) acknowledged the ability to repay the deferred deposit loan in the ordinary course,
367     which may include rollovers, or extended payment plans as allowed under this chapter.
368          (8) (a) Before initiating a civil action against a person who owes money on a deferred
369     deposit loan, a deferred deposit lender shall provide the person at least [10] 30 days notice of
370     default, describing that:
371          (i) the person must remedy the default; and
372          (ii) the deferred deposit lender may initiate a civil action against the person if the
373     person fails to cure the default within the [10] 30-day period or through an extended payment
374     plan meeting the requirements of Section 7-23-403 .
375          (b) A deferred deposit lender may provide the notice required under this Subsection
376     (8):
377          (i) by sending written notice to the address provided by the person to the deferred
378     deposit lender;
379          (ii) by sending an electronic transmission to a person if electronic contact information
380     is provided to the deferred deposit lender; or
381          (iii) pursuant to the Utah Rules of Civil Procedure.
382          (c) A notice under this Subsection (8), in addition to complying with Subsection (8)(a),
383     shall:
384          (i) be in English, if the initial transaction is conducted in English;
385          (ii) state the date by which the person must act to enter into an extended payment plan;
386          (iii) explain the procedures the person must follow to enter into an extended payment
387     plan;
388          (iv) subject to Subsection 7-23-403(7), if the deferred deposit lender requires the
389     person to make an initial payment to enter into an extended payment plan:
390          (A) explain the requirement; and
391          (B) state the amount of the initial payment and the date the initial payment shall be
392     made;
393          (v) state that the person has the opportunity to enter into an extended payment plan for
394     a time period meeting the requirements of Subsection 7-23-403(2)(b); and
395          (vi) include the following amounts:
396          (A) the remaining balance on the original deferred deposit loan;
397          (B) the total payments made on the deferred deposit loan;
398          (C) any charges added to the deferred deposit loan amount allowed pursuant to this
399     chapter; and
400          (D) the total amount due if the person enters into an extended payment plan.
401          Section 3. Section 7-23-503 is amended to read:
402          7-23-503. Reporting by commissioner.
403          (1) Subject to Subsection (2), as part of the commissioner's annual report to the
404     governor and Legislature under Section 7-1-211, the commissioner shall report to the governor
405     and Legislature on the operations on an aggregate basis of deferred deposit lenders operating in
406     the state.
407          (2) In preparing the report required by Subsection (1), the commissioner:
408          (a) shall include in the report for the immediately preceding calendar year aggregate
409     information from the one or more operations statements filed under Subsection 7-23-201(2)(e)
410     by deferred deposit lenders for that calendar year;
411          (b) shall include in the report:
412          (i) the total number of written complaints concerning issues material to deferred
413     deposit loan transactions received by the department in a calendar year from persons who have
414     entered into a deferred deposit loan with a deferred deposit lender;
415          (ii) for deferred deposit lenders who are registered with the department:
416          (A) the number of the complaints described in Subsection (2)(b)(i) that the department
417     considers resolved; and
418          (B) the number of the complaints described in Subsection (2)(b)(i) that the department
419     considers unresolved; and
420          (iii) for deferred deposit lenders who are not registered with the department:
421          (A) the number of the complaints described in Subsection (2)(b)(i) that the department
422     considers resolved; and
423          (B) the number of the complaints described in Subsection (2)(b)(i) that the department
424     considers unresolved; [and]
425          (c) may not include in the report information from an operations statement filed with
426     the department that could identify a specific deferred deposit lender[.]; and
427          (d) may not include in the report information from an operations statement filed under
428     Subsection 7-23-201(2)(f).
429          Section 4. Section 12-1-11 is amended to read:
430          12-1-11. Collection fee -- Convenience fees.
431          (1) As used in this section:
432          (a) "Creditor" is as defined in 15 U.S.C. Sec. 1692a.
433          (b) "Debt" means an obligation or alleged obligation to pay money arising out of a
434     transaction for money, property, insurance, or services.
435          (c) "Debtor" means a person obligated or allegedly obligated to pay a debt.
436          (d) "Financial transaction card" means the same as that term is defined in Section
437     13-38a-102.
438          [(d)] (e) "Third party debt collection agency" means:
439          (i) a debt collector as defined in 15 U.S.C. Sec. 1692a; or
440          (ii) a person who would be a debt collector under 15 U.S.C. Sec. 1692a, except that the
441     person does not use an instrumentality of interstate commerce or the mail.
442          (2) (a) A creditor may require a debtor to pay a collection fee in addition to any other
443     amount owed to the creditor for a debt if:
444          [(a)] (i) imposing a collection fee on the debtor or in relation to the debt is not
445     prohibited or otherwise restricted by another federal or state law;
446          [(b)] (ii) the creditor contracts with a third party debt collection agency or licensed
447     attorney to collect the debt;
448          [(c)] (iii) the third party debt collection agency with which the creditor contracts is
449     registered under this title;
450          [(d)] (iv) there is a written agreement between the creditor and the debtor that:
451          [(i)] (A) creates the debt; and
452          [(ii)] (B) provides for the imposition of the collection fee in accordance with this
453     section; and
454          [(e)] (v) the obligation to pay the collection fee is imposed at the time of assignment of
455     the debt to a third party debt collection agency or licensed attorney in accordance with an
456     agreement described in Subsection (2)[(d)] (a)(iv).
457          [(3)] (b) The creditor shall establish the amount of the collection fee imposed under
458     this [section] Subsection (2), except that the amount may not exceed the lesser of:
459          [(a)] (i) the actual amount a creditor is required to pay a third party debt collection
460     agency or licensed attorney, regardless of whether that amount is a specific dollar amount or a
461     percentage of the principal amount owed to the creditor for a debt; or
462          [(b)] (ii) 40% of the principal amount owed to the creditor for a debt.
463          [(4)] (c) An obligation to pay a collection fee imposed under this [section] Subsection
464     (2) is in addition to any obligation to pay attorney fees that may otherwise exist.
465          (3) (a) Subject to Subsection (3)(b), a third party debt collection agency that accepts a
466     financial transaction card for the transaction of business may charge a convenience fee for a
467     transaction processed over:
468          (i) the phone;
469          (ii) text or similar short message service; or
470          (iii) the Internet.
471          (b) Before a third party debt collection agency charges a convenience fee as described
472     in Subsection (3)(a), the third party debt collection agency shall:
473          (i) clearly disclose to the debtor that the third party debt collection agency will charge
474     the debtor a convenience fee, in a time and manner that allows the debtor to accept or reject the
475     convenience fee;
476          (ii) disclose to the debtor the amount of the convenience fee; and
477          (iii) give the debtor an alternative payment method option for which a convenience fee
478     does not apply.
479          Section 5. Section 78B-6-306 is amended to read:
480          78B-6-306. Bail bond -- Form.
481          [(1)] When a direction to allow the person arrested to post bail is contained in the
482     warrant of attachment, the person shall be released if bond is posted and the person executes a
483     written promise to appear on the return of the warrant, and abide by the order of the court or
484     judge.
485          [(2) Any bail posted is subject to the provisions of Section 78B-6-311.]
486          Section 6. Section 78B-6-311 is amended to read:
487          78B-6-311. Damages to party aggrieved.
488          (1) If an actual loss or injury to a party in an action or special proceeding is caused by
489     the contempt, the court[,]:
490          (a) in lieu of or in addition to the fine or imprisonment imposed for the contempt, may
491     order the person proceeded against to pay the party aggrieved a sum of money sufficient to
492     indemnify and satisfy the aggrieved party's costs and expenses[. The court:]; and
493          (b) may order that any bail posted by the person proceeded against be used to satisfy all
494     or part of the money ordered to be paid to the aggrieved party.
495          (2) The order described in Subsection (1)(b), and the acceptance of money under [it]
496     the order, is a bar to an action by the aggrieved party for the loss and injury.
497          [(2) A judgment creditor may request that the court pay bail posted by a judgment
498     debtor to the judgment creditor if:]
499          [(a) the judgment debtor owes the judgment creditor funds pursuant to a court-ordered
500     judgment;]
501          [(b) the judgment creditor provides the court with a copy of the valid judgment; and]
502          [(c) bail was posted in cash, or by credit or debit card.]
503          [(3) Upon receipt of a request by a judgment creditor, the court shall require the
504     judgment debtor to provide either proof of payment or good cause why the court should not
505     order the forfeiture of bail to then be paid to the judgment creditor. The court shall find that
506     good cause exists if the judgment debtor provides admissible evidence that the bail was paid by
507     a third party.]
508          [(4) The court may, in its discretion, order all or a portion of the funds deposited with
509     the court as bail to be paid to the judgment creditor towards the amount of the judgment. If the
510     amount paid to the court exceeds the amount of the judgment, the court shall refund the excess
511     to the judgment debtor.]
512          [(5) Within seven days of the receipt of funds, the judgment creditor shall provide to
513     the judgment debtor an accounting of amounts received and the balance still due, if any.]
514          Section 7. Coordinating H.B. 319 with H.B. 113 -- Substantive amendment.
515          If this H.B. 319 and H.B. 113, Consumer Sales Practices Amendments, both pass and
516     become law, it is the intent of the Legislature that the Office of Legislative Research and
517     General Counsel, in preparing the Utah Code database for publication, not enact Section
518     13-38a-401 in H.B. 113.