Chief Sponsor: Norman K. Thurston

Senate Sponsor: Kirk A. Cullimore


8     General Description:
9          This bill enacts the Health Care Consumer Protection Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     prohibits a health care provider from misrepresenting that the provider is a
14     contracted provider under a health benefit plan; and
15          ▸     makes technical changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          13-11-4, as last amended by Laws of Utah 2013, Chapter 124
23     ENACTS:
24          13-58-101, Utah Code Annotated 1953
25          13-58-102, Utah Code Annotated 1953
26          13-58-201, Utah Code Annotated 1953

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 13-11-4 is amended to read:

30          13-11-4. Deceptive act or practice by supplier.
31          (1) A deceptive act or practice by a supplier in connection with a consumer transaction
32     violates this chapter whether it occurs before, during, or after the transaction.
33          (2) Without limiting the scope of Subsection (1), a supplier commits a deceptive act or
34     practice if the supplier knowingly or intentionally:
35          (a) indicates that the subject of a consumer transaction has sponsorship, approval,
36     performance characteristics, accessories, uses, or benefits, if it has not;
37          (b) indicates that the subject of a consumer transaction is of a particular standard,
38     quality, grade, style, or model, if it is not;
39          (c) indicates that the subject of a consumer transaction is new, or unused, if it is not, or
40     has been used to an extent that is materially different from the fact;
41          (d) indicates that the subject of a consumer transaction is available to the consumer for
42     a reason that does not exist, including any of the following reasons falsely used in an
43     advertisement:
44          (i) "going out of business";
45          (ii) "bankruptcy sale";
46          (iii) "lost our lease";
47          (iv) "building coming down";
48          (v) "forced out of business";
49          (vi) "final days";
50          (vii) "liquidation sale";
51          (viii) "fire sale";
52          (ix) "quitting business"; or
53          (x) an expression similar to any of the expressions in Subsections (2)(d)(i) through
54     (ix);
55          (e) indicates that the subject of a consumer transaction has been supplied in accordance
56     with a previous representation, if it has not;
57          (f) indicates that the subject of a consumer transaction will be supplied in greater

58     quantity than the supplier intends;
59          (g) indicates that replacement or repair is needed, if it is not;
60          (h) indicates that a specific price advantage exists, if it does not;
61          (i) indicates that the supplier has a sponsorship, approval, or affiliation the supplier
62     does not have;
63          (j) (i) indicates that a consumer transaction involves or does not involve a warranty, a
64     disclaimer of warranties, particular warranty terms, or other rights, remedies, or obligations, if
65     the representation is false; or
66          (ii) fails to honor a warranty or a particular warranty term;
67          (k) indicates that the consumer will receive a rebate, discount, or other benefit as an
68     inducement for entering into a consumer transaction in return for giving the supplier the names
69     of prospective consumers or otherwise helping the supplier to enter into other consumer
70     transactions, if receipt of the benefit is contingent on an event occurring after the consumer
71     enters into the transaction;
72          (l) after receipt of payment for goods or services, fails to ship the goods or furnish the
73     services within the time advertised or otherwise represented or, if no specific time is advertised
74     or represented, fails to ship the goods or furnish the services within 30 days, unless within the
75     applicable time period the supplier provides the buyer with the option to:
76          (i) cancel the sales agreement and receive a refund of all previous payments to the
77     supplier if the refund is mailed or delivered to the buyer within 10 business days after the day
78     on which the seller receives written notification from the buyer of the buyer's intent to cancel
79     the sales agreement and receive the refund; or
80          (ii) extend the shipping date to a specific date proposed by the supplier;
81          (m) except as provided in Subsection (3)(b), fails to furnish a notice meeting the
82     requirements of Subsection (3)(a) of the purchaser's right to cancel a direct solicitation sale
83     within three business days of the time of purchase if:
84          (i) the sale is made other than at the supplier's established place of business pursuant to
85     the supplier's personal contact, whether through mail, electronic mail, facsimile transmission,

86     telephone, or any other form of direct solicitation; and
87          (ii) the sale price exceeds $25;
88          (n) promotes, offers, or grants participation in a pyramid scheme as defined under Title
89     76, Chapter 6a, Pyramid Scheme Act;
90          (o) represents that the funds or property conveyed in response to a charitable
91     solicitation will be donated or used for a particular purpose or will be donated to or used by a
92     particular organization, if the representation is false;
93          (p) if a consumer indicates the consumer's intention of making a claim for a motor
94     vehicle repair against the consumer's motor vehicle insurance policy:
95          (i) commences the repair without first giving the consumer oral and written notice of:
96          (A) the total estimated cost of the repair; and
97          (B) the total dollar amount the consumer is responsible to pay for the repair, which
98     dollar amount may not exceed the applicable deductible or other copay arrangement in the
99     consumer's insurance policy; or
100          (ii) requests or collects from a consumer an amount that exceeds the dollar amount a
101     consumer was initially told the consumer was responsible to pay as an insurance deductible or
102     other copay arrangement for a motor vehicle repair under Subsection (2)(p)(i), even if that
103     amount is less than the full amount the motor vehicle insurance policy requires the insured to
104     pay as a deductible or other copay arrangement, unless:
105          (A) the consumer's insurance company denies that coverage exists for the repair, in
106     which case, the full amount of the repair may be charged and collected from the consumer; or
107          (B) the consumer misstates, before the repair is commenced, the amount of money the
108     insurance policy requires the consumer to pay as a deductible or other copay arrangement, in
109     which case, the supplier may charge and collect from the consumer an amount that does not
110     exceed the amount the insurance policy requires the consumer to pay as a deductible or other
111     copay arrangement;
112          (q) includes in any contract, receipt, or other written documentation of a consumer
113     transaction, or any addendum to any contract, receipt, or other written documentation of a

114     consumer transaction, any confession of judgment or any waiver of any of the rights to which a
115     consumer is entitled under this chapter;
116          (r) charges a consumer for a consumer transaction or a portion of a consumer
117     transaction that has not previously been agreed to by the consumer;
118          (s) solicits or enters into a consumer transaction with a person who lacks the mental
119     ability to comprehend the nature and consequences of:
120          (i) the consumer transaction; or
121          (ii) the person's ability to benefit from the consumer transaction;
122          (t) solicits for the sale of a product or service by providing a consumer with an
123     unsolicited check or negotiable instrument the presentment or negotiation of which obligates
124     the consumer to purchase a product or service, unless the supplier is:
125          (i) a depository institution under Section 7-1-103;
126          (ii) an affiliate of a depository institution; or
127          (iii) an entity regulated under Title 7, Financial Institutions Act;
128          (u) sends an unsolicited mailing to a person that appears to be a billing, statement, or
129     request for payment for a product or service the person has not ordered or used, or that implies
130     that the mailing requests payment for an ongoing product or service the person has not received
131     or requested;
132          (v) issues a gift certificate, instrument, or other record in exchange for payment to
133     provide the bearer, upon presentation, goods or services in a specified amount without printing
134     in a readable manner on the gift certificate, instrument, packaging, or record any expiration
135     date or information concerning a fee to be charged and deducted from the balance of the gift
136     certificate, instrument, or other record;
137          (w) misrepresents the geographical origin or location of the supplier's business; [or]
138          (x) fails to comply with the restrictions of Section 15-10-201 on automatic renewal
139     provisions[.]; or
140          (y) violates Section 13-58-201.
141          (3) (a) The notice required by Subsection (2)(m) shall:

142          (i) be a conspicuous statement written in dark bold with at least 12-point type on the
143     first page of the purchase documentation; and
144          (ii) read as follows: "YOU, THE BUYER, MAY CANCEL THIS CONTRACT AT
146     reflecting the supplier's cancellation policy but not less than three business days) AFTER THE
148     LATER."
149          (b) A supplier is exempt from the requirements of Subsection (2)(m) if the supplier's
150     cancellation policy:
151          (i) is communicated to the buyer; and
152          (ii) offers greater rights to the buyer than Subsection (2)(m).
153          (4) (a) A gift certificate, instrument, or other record that does not print an expiration
154     date in accordance with Subsection (2)(v) does not expire.
155          (b) A gift certificate, instrument, or other record that does not include printed
156     information concerning a fee to be charged and deducted from the balance of the gift
157     certificate, instrument, or other record is not subject to the charging and deduction of the fee.
158          (c) Subsections (2)(v) and (4)(b) do not apply to a gift certificate, instrument, or other
159     record useable at multiple, unaffiliated sellers of goods or services if an expiration date is
160     printed on the gift certificate, instrument, or other record.
161          Section 2. Section 13-58-101 is enacted to read:

Part 1. General Provisions

164          13-58-101. Title.
165          This chapter is known as the "Health Care Consumer Protection Act."
166          Section 3. Section 13-58-102 is enacted to read:
167          13-58-102. Definitions.
168          As used in this chapter:
169          (1) "Enrollee" means the same as that term is defined in Section 31A-1-301.

170          (2) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
171          (3) "Health care provider" means a person licensed to provide health care under:
172          (a) Title 26, Chapter 21, Health Care Facility Licensing and Inspection Act; or
173          (b) Title 58, Occupations and Professions.
174          Section 4. Section 13-58-201 is enacted to read:
Part 2. Consumer Protection Violations

176          13-58-201. Misrepresentation of health insurance coverage.
177          (1) A health care provider or a health care provider's representative may not represent
178     to an enrollee that the health care provider is a contracted provider under the enrollee's health
179     benefit plan if the health care provider is not a contracted provider under the enrollee's health
180     benefit plan.
181          (2) A knowing or intentional violation of Subsection (1) is a deceptive act or practice
182     under Section 13-11-4.