Chief Sponsor: Andrew Stoddard

Senate Sponsor: ____________


9     General Description:
10          This bill requires certain disclosures or documentation related to unreinforced masonry
11     buildings in transactions involving real property.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines terms;
15          ▸     under certain conditions, requires an owner or lessor to disclose whether real estate
16     includes or may include an unreinforced masonry building;
17          ▸     establishes penalties for an owner or lessor's failure to provide written disclosure or
18     documentation regarding unreinforced masonry buildings; and
19          ▸     directs the Division of Consumer Protection to:
20               •     establish a process for reporting a violation of the Disclosure of Unreinforced
21     Masonry Buildings Act (Act);
22               •     investigate an alleged violation of the Act;
23               •     impose a fine for a violation of the Act; and
24               •     provide certain notifications.
25     Money Appropriated in this Bill:
26          None
27     Other Special Clauses:

28          None
29     Utah Code Sections Affected:
30     AMENDS:
31          13-2-1, as last amended by Laws of Utah 2020, Chapter 118
32     ENACTS:
33          57-30-101, Utah Code Annotated 1953
34          57-30-102, Utah Code Annotated 1953
35          57-30-201, Utah Code Annotated 1953
36          57-30-301, Utah Code Annotated 1953
37          57-30-302, Utah Code Annotated 1953
38          57-30-303, Utah Code Annotated 1953

40     Be it enacted by the Legislature of the state of Utah:
41          Section 1. Section 13-2-1 is amended to read:
42          13-2-1. Consumer protection division established -- Functions.
43          (1) There is established within the Department of Commerce the Division of Consumer
44     Protection.
45          (2) The division shall administer and enforce the following:
46          (a) Chapter 5, Unfair Practices Act;
47          (b) Chapter 10a, Music Licensing Practices Act;
48          (c) Chapter 11, Utah Consumer Sales Practices Act;
49          (d) Chapter 15, Business Opportunity Disclosure Act;
50          (e) Chapter 20, New Motor Vehicle Warranties Act;
51          (f) Chapter 21, Credit Services Organizations Act;
52          (g) Chapter 22, Charitable Solicitations Act;
53          (h) Chapter 23, Health Spa Services Protection Act;
54          (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
55          (j) Chapter 26, Telephone Fraud Prevention Act;
56          (k) Chapter 28, Prize Notices Regulation Act;
57          (l) Chapter 32a, Pawnshop and Secondhand Merchandise Transaction Information Act;
58          (m) Chapter 34, Utah Postsecondary Proprietary School Act;

59          (n) Chapter 34a, Utah Postsecondary School State Authorization Act;
60          (o) Chapter 39, Child Protection Registry;
61          (p) Chapter 41, Price Controls During Emergencies Act;
62          (q) Chapter 42, Uniform Debt-Management Services Act;
63          (r) Chapter 49, Immigration Consultants Registration Act;
64          (s) Chapter 51, Transportation Network Company Registration Act;
65          (t) Chapter 52, Residential Solar Energy Disclosure Act;
66          (u) Chapter 53, Residential, Vocational and Life Skills Program Act;
67          (v) Chapter 54, Ticket Website Sales Act;
68          (w) Chapter 56, Ticket Transferability Act; [and]
69          (x) Chapter 57, Maintenance Funding Practices Act[.]; and
70          (y) Title 57, Chapter 30, Disclosure of Unreinforced Masonry Buildings Act.
71          Section 2. Section 57-30-101 is enacted to read:

Part 1. General Provisions

74          57-30-101. Title.
75          This chapter is known as the "Disclosure of Unreinforced Masonry Buildings Act."
76          Section 3. Section 57-30-102 is enacted to read:
77          57-30-102. Definitions.
78          As used in this chapter:
79          (1) "Division" means the Division of Consumer Protection established in Section
80     13-2-1.
81          (2) "Load-bearing wall" means a wall supporting:
82          (a) a floor or roof; or
83          (b) a superimposed load of 100 pounds per lineal foot.
84          (3) "Masonry" means units of stone, clay brick, hollow clay brick, concrete brick, or
85     hollow concrete block.
86          (4) (a) "Owner" means the holder of a legal or equitable title or interest in real
87     property.
88          (b) "Owner" includes a shareholder, partner, operator, or other legal entity.
89          (5) "Real estate professional" means a licensee under Title 61, Chapter 2f, Real Estate

90     Licensing and Practices Act.
91          (6) "Unreinforced masonry building" means a building with a load-bearing wall
92     constructed:
93          (a) of grouted or stacked masonry; and
94          (b) with less than 50% of the steel reinforcement required under the 2018 International
95     Building Code issued by the International Code Council.
96          Section 4. Section 57-30-201 is enacted to read:
Part 2. Required Disclosure of Unreinforced Masonry Buildings

98          57-30-201. Disclosure of unreinforced masonry buildings.
99          (1) (a) If an owner or lessor of real property has actual knowledge that the real property
100     includes an unreinforced masonry building, the owner or lessor shall, in a real property lease,
101     conveyance, or other transaction related to the real property, provide written disclosure to the
102     buyer or lessee that the real property includes an unreinforced masonry building.
103          (b) The written disclosure required under Subsection (1)(a) shall clearly and
104     conspicuously state:
105          "This property includes an unreinforced masonry building. An unreinforced masonry
106     building does not have structural support designed to resist even a moderate earthquake (5.0 to
107     5.9 in magnitude). Utah is home to many active fault lines with 90% of the state's population
108     living in Utah's active earthquake belt. Experts say there is a 57% chance of a 6.0 magnitude or
109     larger earthquake, and a 43% chance of a 6.75 magnitude or larger earthquake, along Utah's
110     Wasatch Front region before 2066 (DuRoss, C.B., 2016, Earthquake forecast for the Wasatch
111     Front region of the Intermountain West: U.S. Geological Survey Fact Sheet 2016-3019). The
112     collapse of unreinforced masonry buildings is one of the major sources of deaths, injury, and
113     damage resulting from an earthquake."
114          (2) (a) If real property includes a building built before 1975, unless the owner or lessor
115     of the real property makes a written disclosure required under Subsection (1), the owner or
116     lessor of the real property shall provide the buyer or lessee of the real property:
117          (i) written disclosure that the real property may include an unreinforced masonry
118     building; or
119          (ii) documentation that the real property does not include an unreinforced masonry
120     building from an individual:

121          (A) licensed under Title 58, Chapter 22, Professional Engineers and Professional Land
122     Surveyors Licensing Act; and
123          (B) whom the Department of Occupational and Professional Licensing through rule
124     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
125     considers qualified to make the determination.
126          (b) The written disclosure described in Subsection (2)(a)(i) shall clearly and
127     conspicuously state:
128          "Buildings built before 1975 may be built with unreinforced masonry. An unreinforced
129     masonry building does not have structural support designed to resist even a moderate
130     earthquake (5.0 to 5.9 in magnitude). Utah is home to many active fault lines with 90% of the
131     state's population living in Utah's active earthquake belt. Experts say there is a 57% chance of a
132     6.0 magnitude or larger earthquake, and a 43% chance of a 6.75 magnitude or larger
133     earthquake, along Utah's Wasatch Front region before 2066 (DuRoss, C.B., 2016, Earthquake
134     forecast for the Wasatch Front region of the Intermountain West: U.S. Geological Survey Fact
135     Sheet 2016-3019). The collapse of unreinforced masonry buildings is one of the major sources
136     of deaths, injury, and damage resulting from an earthquake."
137          Section 5. Section 57-30-301 is enacted to read:
Part 3. Enforcement

139          57-30-301. Remedy.
140          (1) (a) If an owner fails to provide a buyer the written disclosure or documentation
141     required under Section 57-30-201, the buyer may:
142          (i) terminate the real estate purchase contract before the day on which closing occurs;
143     and
144          (ii) retain all earnest money the buyer deposited.
145          (b) The remedy described in Subsection (1)(a) is a buyer's exclusive remedy for the
146     owner's failure to provide the written disclosure or documentation required under Section
147     57-30-201.
148          (2) (a) If a lessor fails to provide a lessee the written disclosure or documentation
149     required under Section 57-30-201, the lessee may:
150          (i) report the lessor through the reporting process described in Section 57-30-302; and
151          (ii) upon receiving the notification described in Subsection 57-30-302(3)(b), terminate

152     the lease by:
153          (A) providing written notice to the lessor that the lessee is terminating the lease; and
154          (B) vacating the leased premises within 10 days after the day on which the lessee
155     provides the written notice described in Subsection (2)(a)(ii)(A).
156          (b) If a lessee terminates a lease as described in this subsection, the lessor:
157          (i) shall immediately pay the lessee:
158          (A) a prorated refund for any prepaid rent;
159          (B) any security deposit due the lessee; and
160          (ii) may not charge the lessee a fee or exact a penalty against the lessee for terminating
161     the lease.
162          Section 6. Section 57-30-302 is enacted to read:
163          57-30-302. Reporting -- Investigation -- Fines.
164          The division shall:
165          (1) develop, maintain, and make available to the public a reporting process for a
166     lessor's alleged violation of Section 57-30-201;
167          (2) investigate a lessor's alleged violation of Section 57-30-201; and
168          (3) if the division finds a lessor violated Section 57-30-201:
169          (a) impose a fine on the lessor, not to exceed:
170          (i) $300 for the first violation;
171          (ii) $600 for the second violation; and
172          (iii) $1,000 for the third or subsequent violation; and
173          (b) promptly notify the lessee against whom the violation occurred, that the division
174     found the lessor violated Section 57-30-201.
175          Section 7. Section 57-30-303 is enacted to read:
176          57-30-303. Real estate professional not liable.
177          A real estate professional is not liable for an owner or lessor of real property providing,
178     or failing to provide, a disclosure or documentation required under Section 57-30-201, unless
179     the real estate professional is also the owner or lessor of the real property.