1     
DIVISION OF CONSUMER PROTECTION AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Curtis S. Bramble

5     
House Sponsor: Joel Ferry

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions of the Business Opportunity Disclosure Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     amends provisions regarding filings;
14          ▸     amends provisions regarding seller disclosure statements;
15          ▸     amends provisions regarding furnishing a disclosure statement to a potential
16     purchaser;
17          ▸     amends provisions regarding enforcement of the Business Opportunity Disclosure
18     Act; and
19          ▸     makes technical and conforming changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     ENACTS:
26          13-15-201, Utah Code Annotated 1953
27          13-15-401, Utah Code Annotated 1953
28     RENUMBERS AND AMENDS:
29          13-15-101, (Renumbered from 13-15-1, as enacted by Laws of Utah 1981, Chapter 69)
30          13-15-102, (Renumbered from 13-15-2, as last amended by Laws of Utah 2012,
31     Chapter 152)
32          13-15-202, (Renumbered from 13-15-4, as last amended by Laws of Utah 2017,
33     Chapter 98)
34          13-15-203, (Renumbered from 13-15-5, as last amended by Laws of Utah 2010,
35     Chapter 378)
36          13-15-301, (Renumbered from 13-15-3, as last amended by Laws of Utah 2015,
37     Chapter 335)
38          13-15-302, (Renumbered from 13-15-6, as last amended by Laws of Utah 2006,
39     Chapter 47)
40     REPEALS:
41          13-15-4.5, as last amended by Laws of Utah 2009, Chapter 183
42          13-15-7, as last amended by Laws of Utah 1995, Chapter 85
43     

44     Be it enacted by the Legislature of the state of Utah:
45          Section 1. Section 13-15-101, which is renumbered from Section 13-15-1 is
46     renumbered and amended to read:
47     
CHAPTER 15. BUSINESS OPPORTUNITY DISCLOSURE ACT

48     
Part 1. General Provisions

49          [13-15-1].      13-15-101. Title.
50          This [act shall be known and may be cited] chapter is known as the "Business
51     Opportunity Disclosure Act."
52          Section 2. Section 13-15-102, which is renumbered from Section 13-15-2 is
53     renumbered and amended to read:
54          [13-15-2].      13-15-102. Definitions.
55          As used in this chapter:
56          [(1) (a) "Assisted marketing plan" means the sale or lease of any products, equipment,
57     supplies, or services that are sold to the purchaser upon payment of an initial required
58     consideration of $500 or more for the purpose of enabling the purchaser to start a business, and
59     in which the seller represents:]
60          [(i) that the seller will provide locations or assist the purchaser in finding locations for
61     the use or operation of vending machines, racks, display cases, or other similar devices, or
62     currency operated amusement machines or devices, on premises neither owned nor leased by
63     the purchaser or seller;]
64          [(ii) that the seller will purchase any or all products made, produced, fabricated, grown,
65     or modified by the purchaser, using in whole or in part the supplies, services, or chattels sold to
66     the purchaser;]
67          [(iii) that the seller will provide the purchaser with a guarantee that the purchaser will
68     receive income from the assisted marketing plan that exceeds the price paid for the assisted
69     marketing plan, or repurchase any of the products, equipment, supplies, or chattels supplied by
70     the seller if the purchaser is dissatisfied with the assisted marketing plan; or]
71          [(iv) that upon payment by the purchaser of a fee or sum of money, which exceeds
72     $500 to the seller, the seller will provide a sales program or marketing program that will enable
73     the purchaser to derive income from the assisted marketing plan that exceeds the price paid for
74     the marketing plan.]
75          (1) (a) "Business opportunity" means an arrangement under which a person:
76          (i) sells or leases a product, equipment, a supply, or a service:
77          (A) upon payment of initial required consideration of at least $500; and
78          (B) for the purpose of enabling the buyer or lessee to start a business; and
79          (ii) represents to the buyer or lessee that:
80          (A) the person will provide a location or assist the buyer or lessee find a location for
81     the use or operation of a vending machine, rack, display case, or other similar device, or a
82     currency-operated amusement machine or device, on premises neither owned nor leased by the
83     person nor the buyer or lessee;
84          (B) the person will purchase a product the buyer or lessee makes, produces, fabricates,
85     grows, or modifies, using in whole or in part the product, equipment, supply, or service the
86     buyer or lessee buys or leases from the person;
87          (C) the person will provide the buyer or lessee with a guarantee that the buyer or lessee
88     will receive income from the product, equipment, supply, or service the buyer or lessee buys or
89     leases from the person that exceeds the amount the buyer or lessee pays to buy or lease the
90     product, equipment, supply, or service, and if not the person will repurchase the product,
91     equipment, supply, or service, if the buyer or lessee is dissatisfied; or
92          (D) the buyer or lessee will or may derive income from the business described in
93     Subsection (1)(a)(i) that exceeds the amount the buyer or lessee pays to buy or lease the
94     product, equipment, supply, or service.
95          (b) ["Assisted marketing plan"] "Business opportunity" does not include:
96          (i) the sale of an ongoing business when the owner of that business sells and intends to
97     sell only that one [assisted marketing plan] business; or
98          (ii) not-for-profit sale of sales demonstration equipment, materials, or samples for a
99     total price of $500 or less[; or].
100          [(iii) the sale of a package franchise or a product franchise defined by and in
101     compliance with Federal Trade Commission rules governing franchise and business
102     opportunity ventures.]
103          [(c) As used in Subsection (1)(a)(iii) "guarantee" means a written agreement, signed by
104     the purchaser and seller, disclosing the complete details and any limitations or exceptions of
105     the agreement.]
106          [(2) "Business opportunity" means an assisted marketing plan subject to this chapter.]
107          [(3)] (2) "Division" means the Division of Consumer Protection of the Department of
108     Commerce.
109          (3) "Franchise" means the same as that term is defined by Federal Trade Commission
110     rules governing franchise and business opportunity ventures.
111          (4) "Guarantee" means a written agreement that:
112          (a) a purchaser and seller sign; and
113          (b) discloses the complete details and each limitation or exception of the agreement.
114          [(4)] (5) (a) "Initial required consideration" means the total amount a purchaser is
115     obligated to pay under the terms of [the assisted marketing plan, either prior to or at the time of
116     delivery of the products, equipment, supplies, or services, or] a business opportunity:
117          (i) before the day on which the purchaser receives the product, equipment, supply, or
118     service;
119          (ii) the day on which the purchaser receives the product, equipment, supply, or service;
120     or
121          (iii) within six months [of the commencement of operation of the assisted marketing
122     plan by] after the day on which the purchaser and seller enter into the business opportunity. [If
123     payment is over a period of time, "initial required consideration" means]
124          (b) "Initial required consideration" includes the sum of [the] any down payment and the
125     total [monthly] of all additional payments, if the purchaser's payment under the terms of the
126     business opportunity is over a period of time.
127          [(b)] (c) "Initial required consideration" does not [mean] include the not-for-profit sale
128     of sales demonstration equipment, materials, or supplies for a total [price] amount of less than
129     $500.
130          [(5) "Person" means any natural person, corporation, partnership, organization,
131     association, trust, or any other legal entity.]
132          (6) "Principal" means as the division determines by rule made in accordance with Title
133     63G, Chapter 3, Utah Administrative Rulemaking Act.
134          [(6)] (7) "Purchaser" means a person who [becomes obligated to pay for an assisted
135     marketing plan] buys or leases from another person a business opportunity.
136          [(7)] (8) "Registered trademark" or "service mark" means a trademark, trade name, or
137     service mark registered with the United States Patent and Trademark Office, or Utah, or the
138     state of incorporation if a corporation.
139          [(8)] (9) (a) "Seller" means a person who offers to sell, offers to lease, sells, or [offers
140     to sell an assisted marketing plan] leases to another person a business opportunity.
141          (b) "Seller" does not include an individual representative or salesperson, unless the
142     individual is a principal of a sole proprietorship, partnership, association, joint venture,
143     corporation, firm, or other organization or entity used in carrying on a business, that offers to
144     sell, offers to lease, sells, or leases to another person a business opportunity.
145          Section 3. Section 13-15-201 is enacted to read:
146     
Part 2. Seller Duties

147          13-15-201. Required filings -- Fees -- Rulemaking.
148          (1) (a) Except as provided in Subsection (2), before a person may act as a seller in the
149     state, the person shall obtain a proof of disclosure receipt from the division.
150          (b) To obtain a proof of disclosure receipt from the division, a person shall:
151          (i) file with the division a disclosure statement that complies with Section 13-15-202;
152     and
153          (ii) pay a filing fee as determined by the division in accordance with Section
154     63J-1-504.
155          (c) A proof of disclosure receipt is valid for one year after the day on which the
156     division issues the receipt.
157          (d) To renew a proof of disclosure receipt, a seller shall comply with the provisions of
158     Subsection (1)(b) at least 30 days before the day on which the seller's current proof of
159     disclosure receipt expires.
160          (2) (a) Before a person offers for sale or sells a franchise to be located in the state or to
161     a resident of the state, the person shall obtain a proof of notice receipt from the division.
162          (b) To obtain a proof of notice receipt from the division, a person shall:
163          (i) file with the division a notice that states:
164          (A) the franchisor is in substantial compliance with the requirements of the Federal
165     Trade Commission rule found at Title 16, Chapter I, Subchapter d, Trade Regulation Rules,
166     Part 436, Disclosure Requirements and Prohibitions Concerning Franchising;
167          (B) the name of the applicant;
168          (C) the name of the franchise;
169          (D) the name under which the applicant intends to transact or transacts business, if
170     different than the name of the franchise;
171          (E) the address of the applicant's principal place of business; and
172          (F) the applicant's state-issued business entity number or other government-issued,
173     publicly available identifying number; and
174          (ii) pay a filing fee determined by the division in accordance with Section 63J-1-504,
175     not to exceed $100.
176          (c) A seller who does not qualify for a proof notice receipt under this Subsection (2) is
177     subject to Subsection (1).
178          (d) A proof of notice receipt is valid for one year after the day on which the division
179     issues the receipt.
180          (e) To renew a proof of notice receipt, a person offering for sale or selling a franchise
181     to be located in the state or to a resident of the state, shall comply with the provisions of
182     Subsection (2)(b) at least 30 days before the day on which the person's current proof of notice
183     receipt expires.
184          (3) The division shall deposit all fees collected under this section into the Commerce
185     Service Account created in Section 13-1-2.
186          (4) The division may make rules in accordance with Title 63G, Chapter 3, Utah
187     Administrative Rulemaking Act, to carry out the provisions of this section.
188          Section 4. Section 13-15-202, which is renumbered from Section 13-15-4 is
189     renumbered and amended to read:
190          [13-15-4].      13-15-202. Disclosure statements.
191          [(1) A seller of an assisted marketing plan shall annually file the following information
192     with the division:]
193          [(a) the name, address, and principal place of business of the seller, and the name,
194     address, and principal place of business of the parent or holding company of the seller, if any,
195     who is responsible for statements made by the seller;]
196          [(b) the trademarks, trade names, service marks, or advertising or other commercial
197     symbols that identify the products, equipment, supplies, or services to be offered, sold, or
198     distributed by the prospective purchaser;]
199          [(c) an individual detailed statement covering the past five years of the business
200     experience of each of the seller's current directors and executive officers and an individual
201     statement covering the same period for the seller and the seller's parent company, if any,
202     including the length of time each:]
203          [(i) has conducted a business of the type advertised or solicited for operation by a
204     prospective purchaser;]
205          [(ii) has offered or sold the assisted marketing plan; and]
206          [(iii) has offered for sale or sold assisted marketing plans in other lines of business,
207     together with a description of the other lines of business;]
208          [(d) (i) a statement of the total amount that shall be paid by the purchaser to obtain or
209     commence the business opportunity such as initial fees, deposits, down payments, prepaid rent,
210     and equipment and inventory purchases; and]
211          [(ii) if all or part of the fees or deposits described in Subsection (1)(d)(i) are returnable,
212     the conditions under which the fees or deposits are returnable;]
213          [(e) a complete statement of the actual services the seller will perform for the
214     purchaser;]
215          [(f) a complete statement of the oral, written, or visual representations that will be
216     made to prospective purchasers about specific levels of potential sales, income, gross and net
217     profits, or any other representations that suggest a specific level;]
218          [(g) a complete description of the type and length of any training promised to
219     prospective purchasers;]
220          [(h) (i) a complete description of any services promised to be performed by the seller in
221     connection with the placement of the equipment, products, or supplies at any location from
222     which they will be sold or used; and]
223          [(ii) a complete description of the services described in Subsection (1)(h)(i) together
224     with any agreements that will be made by the seller with the owner or manager of the location
225     where the purchaser's equipment, products, or supplies will be placed;]
226          [(i) a statement that discloses any person identified in Subsection (1)(a) who:]
227          [(i) has been convicted of a felony or misdemeanor or pleaded nolo contendere to a
228     felony or misdemeanor charge if the felony or misdemeanor involved fraud, embezzlement,
229     fraudulent conversion, or misappropriation of property;]
230          [(ii) has been held liable or consented to the entry of a stipulated judgment in a civil
231     action based upon fraud, embezzlement, fraudulent conversion, misappropriation of property,
232     or the use of untrue or misleading representations in the sale or attempted sale of any real or
233     personal property, or upon the use of any unfair, unlawful or deceptive business practice; or]
234          [(iii) is subject to an injunction or restrictive order relating to business activity as the
235     result of an action brought by a public agency;]
236          [(j) a financial statement that is less than 13 months old of the seller signed by one of
237     the seller's officers, directors, trustees, or general or limited partners, under a declaration that
238     certifies that to the signatory's knowledge and belief the information in the financial statement
239     is true and accurate;]
240          [(k) a copy of the entire marketing plan contract;]
241          [(l) the number of marketing plans sold to date, and the number of plans under
242     negotiation;]
243          [(m) geographical information, including the states in which the seller's assisted
244     marketing plans have been sold, and the number of plans in each state;]
245          [(n) the total number of marketing plans that were cancelled by the seller in the past 12
246     months; and]
247          [(o) the number of marketing plans that were voluntarily terminated by purchasers
248     within the past 12 months and the total number of such voluntary terminations to date.]
249          [(2) The seller of an assisted marketing plan filing information under Subsection (1)
250     shall pay an annual fee as determined by the department in accordance with Section 63J-1-504
251     when the seller files the information required under Subsection (1).]
252          [(3) (a) Before commencing business in this state, a seller of an assisted marketing plan
253     shall file the information required under Subsection (1) and receive from the division proof of
254     receipt of the filing.]
255          [(b) A seller shall annually comply with Subsections (1) and (2) by no later than the
256     anniversary of the day on which the seller receives from the division proof of receipt of the
257     filing.]
258          [(4) A seller of an assisted marketing plan claiming an exemption from filing under
259     this chapter shall file a notice of claim of exemption from filing with the division. A seller
260     claiming an exemption from filing bears the burden of proving the exemption. The division
261     shall collect a fee for filing a notice of claim of exemption, as determined by the department in
262     accordance with Section 63J-1-504.]
263          [(5) A representation described in Subsection (1)(f) shall be relevant to the geographic
264     market in which the business opportunity is to be located. When the statements or
265     representations are made, a warning after the representation in not less than 12 point upper and
266     lower case boldface type shall appear as follows:]
267          (1) An applicant for a proof of disclosure receipt under Subsection 13-15-201(1) shall
268     include the following in a disclosure statement:
269          (a) the name, address, and principal place of business of:
270          (i) the applicant; and
271          (ii) each parent, affiliate, or holding company of the applicant that is responsible for a
272     statement that the applicant makes;
273          (b) an individual statement from each of the following, detailing the person's business
274     experience for the five-year period immediately before the day on which the applicant files the
275     disclosure statement:
276          (i) the applicant;
277          (ii) each parent company of the applicant;
278          (iii) each current director of the applicant; and
279          (iv) each current executive officer of the applicant;
280          (c) for each type of business opportunity the applicant offers to enter into or enters into
281     as a seller:
282          (i) an individual statement from each person described in Subsections (1)(b)(i) and (ii)
283     detailing the length of time, during the five-year period immediately before the day on which
284     the applicant files the disclosure statement, the person has:
285          (A) operated a business of the type the purchaser would operate under the business
286     opportunity; and
287          (B) offered to sell or lease that type of business opportunity;
288          (ii) each trademark, trade name, service mark, advertisement, or other commercial
289     symbol that identifies a product, equipment, a supply, or a service that the applicant sells or
290     leases under the business opportunity;
291          (iii) a complete statement of:
292          (A) the total amount that a purchaser pays to obtain or commence the operation of the
293     business under the business opportunity;
294          (B) if all or part of a fee or deposit described in Subsection (1)(c)(iii)(A) is refundable,
295     the conditions under which the fee or deposit is refundable;
296          (C) the product, equipment, supply, or service the applicant provides or performs for a
297     purchaser under the business opportunity; and
298          (D) each oral, written, visual, or other representation that the applicant makes to a
299     prospective purchaser about specific levels of potential sales, income, or gross and net profits
300     under the business opportunity;
301          (iv) a complete description of:
302          (A) the type and length of training the applicant promises to a prospective purchaser, if
303     any;
304          (B) each service the applicant promises to perform in connection with the placement of
305     equipment, a product, or a supply at a location from which the equipment, product, or supply
306     will be sold or used; and
307          (C) each agreement the applicant makes with an owner or manager of a location where
308     a purchaser's equipment, product, or supply is placed; and
309          (v) a complete copy of each contract to which a purchaser under the business
310     opportunity would be party;
311          (d) the total number of business opportunities the applicant has entered into as a seller
312     in each state;
313          (e) the total number of business opportunities that the applicant has canceled within the
314     12 months before the day on which the applicant files the disclosure statement;
315          (f) the total number of business opportunities, to which the applicant is a party, for
316     which a purchaser has requested a refund or cancellation within the 12 months before the day
317     on which the applicant files the disclosure statement;
318          (g) a statement that discloses each person identified in Subsection (1)(a) who:
319          (i) has been convicted of a felony or misdemeanor or pleaded no contest to a felony or
320     misdemeanor charge, if the felony or misdemeanor involved fraud, embezzlement, fraudulent
321     conversion, or misappropriation of property;
322          (ii) has been held liable or consented to the entry of a stipulated judgment in an
323     administrative or civil action based upon:
324          (A) fraud, embezzlement, fraudulent conversion, misappropriation of property;
325          (B) the use of untrue or misleading representations; or
326          (C) the use of any unfair, unlawful, or deceptive business practice; or
327          (iii) is subject to an injunction or restrictive order relating to business activity as the
328     result of a government agency action;
329          (h) a financial statement from the applicant that is:
330          (i) less than 13 months old; and
331          (ii) signed by an officer, director, trustee, or general or limited partner of the applicant,
332     under a declaration that certifies that to the signatory's knowledge and belief the information in
333     the financial statement is true and accurate; and
334          (i) a cover sheet that:
335          (i) is attached to the front or appears at the beginning of the disclosure statement; and
336          (ii) conspicuously states in at least 12-point upper- and lower-case boldface type:
337          (A) the name of the applicant;
338          (B) the date on which the applicant files the disclosure;
339          (C) the following notice:
340          "INFORMATION FOR PURCHASE OF A BUSINESS OPPORTUNITY:
341          To protect you, the State of Utah has required your seller to give you this disclosure
342     statement. The State of Utah has not verified the accuracy of the information in the disclosure
343     statement."; and
344          (D) if the applicant makes a representation described in Subsection (1)(c)(iii)(D) or
345     13-15-102(1)(a)(ii)(D) the following notice:
346     
"CAUTION

347          [No guarantee of earnings or ranges of earnings can be made.] The number of
348     purchasers who have earned through this business opportunity an amount in excess of the
349     amount [of their initial payment] the purchaser pays for the business opportunity is at least
350     _____ which represents at least _____% of the total number of purchasers of this business
351     opportunity."
352          (2) The disclosure statement described in Subsection (1) may not include material or
353     information other than the material and information required under Subsection (1).
354          Section 5. Section 13-15-203, which is renumbered from Section 13-15-5 is
355     renumbered and amended to read:
356          [13-15-5].      13-15-203. Disclosure statement furnished to purchaser --
357     Additional nondeceptive information permitted.
358          [All the information required under Section 13-15-4 shall be contained in a single
359     disclosure statement or prospectus which shall be provided to any prospective purchaser at
360     least 10 business days prior to the earlier of:]
361          (1) A seller shall provide the disclosure statement described under Section 13-15-202
362     to a prospective purchaser at least 10 business days before the day on which the earlier of the
363     following occurs:
364          [(1)] (a) the [execution by prospective purchaser of any] prospective purchaser
365     executes an agreement imposing a binding legal obligation on [such] the prospective purchaser
366     [by which the seller knows or should know,] in connection with the seller's sale or proposed
367     sale of [the "assisted marketing plan"] a business opportunity; or
368          [(2)] (b) the [payment by a] prospective purchaser[, by which the seller knows or
369     should know of any consideration] makes a payment or provides consideration in connection
370     with the seller's sale or proposed sale of [the "assisted market plan." The disclosure statement
371     or prospectus may not contain any material or information other than that required under
372     Section 13-15-4. However, the seller may give prospective purchasers nondeceptive
373     information other than that contained in the disclosure statement or prospectus if it does not
374     contradict the information required to appear in the disclosure statement or prospectus. A
375     cover sheet attached to the disclosure statement or prospectus shall conspicuously state the
376     name of the seller, the date of issuance of the disclosure statement or prospectus, and a notice
377     printed in not less than 12 point upper and lower case boldface type as follows:] a product or
378     business opportunity.
379     
[INFORMATION FOR PURCHASE OF A MARKETING PLAN:]

380          [To protect you, the State Division of Consumer Protection has required your seller to
381     give you this information. The State Division of Consumer Protection has not verified this
382     information as to its accuracy. The notice may contain additional precautions deemed necessary
383     and pertinent. The seller, in lieu of the information requested by Section 13-15-4, may file
384     with the commission and provide to prospective purchasers certified disclosure documents
385     authorized for use by the Federal Trade Commission pursuant to Title 16, Chapter I,
386     Subchapter d, Trade Regulation Rules, Part 436, "Disclosure Requirements and Prohibitions
387     Concerning Franchising and Business Opportunity Ventures."]
388          (2) A seller may provide a prospective purchaser nondeceptive information apart from
389     the disclosure statement described in Section 13-15-202, if the information does not contradict
390     the information required in the disclosure statement.
391          Section 6. Section 13-15-301, which is renumbered from Section 13-15-3 is
392     renumbered and amended to read:
393     
Part 3. Enforcement

394          [13-15-3].      13-15-301. Administration and enforcement -- Powers -- Legal
395     counsel -- Fees.
396          (1) The division shall administer and enforce the provisions of this chapter[. In the
397     exercise of its responsibilities, the division shall enjoy the powers, and be subject to the
398     constraints, set forth in Title 13, Chapter 2, Division of Consumer Protection] in accordance
399     with Chapter 2, Division of Consumer Protection.
400          (2) The attorney general, upon request, shall give legal advice to, and act as counsel
401     for, the division in the exercise of [its] the division's responsibilities under this chapter.
402          (3) (a) In addition to the division's enforcement powers under Chapter 2, Division of
403     Consumer Protection:
404          (i) the division director may impose an administrative fine of up to $2,500 for each
405     violation of this chapter; and
406          (ii) the division may bring an action in a court of competent jurisdiction to enforce a
407     provision of this chapter.
408          (b) In a court action by the division to enforce a provision of this chapter, the court
409     may:
410          (i) declare that an act or practice violates a provision of this chapter;
411          (ii) issue an injunction for a violation of this chapter;
412          (iii) order disgorgement of any money received in violation of this chapter;
413          (iv) order payment of disgorged money to an injured purchaser or consumer;
414          (v) impose a fine of up to $2,500 for each violation of this chapter; or
415          (vi) award any other relief that the court deems reasonable and necessary.
416          (4) If a court of competent jurisdiction grants judgment or injunctive relief to the
417     division, the court shall award the division:
418          (a) reasonable attorney fees;
419          (b) court costs; and
420          (c) investigative fees.
421          (5) (a) A person who violates an administrative or court order issued for a violation of
422     this chapter is subject to a civil penalty of no more than $5,000 for each violation.
423          (b) A civil penalty authorized under this section may be imposed in any civil action
424     brought by the attorney general on behalf of the division.
425          (6) All money received for the payment of a fine or civil penalty imposed under this
426     section shall be deposited into the Consumer Protection Education and Training Fund created
427     in Section 13-2-8.
428          [(3) All fees collected under this chapter shall be deposited in the Commerce Service
429     Account created by Section 13-1-2.]
430          [(4) (a) As used in this Subsection (4), "consumer complaint" means a complaint that:]
431          [(i) is filed with the division by a consumer or business;]
432          [(ii) alleges facts relating to conduct that the division regulates under this chapter; and]
433          [(iii) (A) alleges a loss to the consumer or business of $3,500 or more; or]
434          [(B) is one of at least 50 other complaints against the same person filed by other
435     consumers or businesses during the four years immediately preceding the filing of the
436     complaint.]
437          [(b) For purposes of determining the number of complaints against the same person
438     under Subsection (4)(a)(iii)(B), the division may consider complaints filed against multiple
439     corporations, limited liability companies, partnerships, or other business entities under
440     common ownership to be complaints against the same person.]
441          [(c) Notwithstanding Subsection 13-11-7(2) and subject to Subsections (4)(d) and (e), a
442     consumer complaint:]
443          [(i) is a public record; and]
444          [(ii) may not be classified as a private, controlled, or protected record under Title 63G,
445     Chapter 2, Government Records Access and Management Act.]
446          [(d) Subsection (4)(c) does not apply to a consumer complaint:]
447          [(i) (A) if the division determines through an administrative proceeding that the
448     consumer complaint is nonmeritorious; and]
449          [(B) beginning when the nonmeritorious determination is made; or]
450          [(ii) that has been on file with the division for more than four years.]
451          [(e) Before making a consumer complaint that is subject to Subsection (4)(c) or a
452     response described in Subsection (4)(f) available to the public, the division:]
453          [(i) shall redact from the consumer complaint or response any information that would
454     disclose the address, Social Security number, bank account information, email address, or
455     telephone number of the consumer or business; and]
456          [(ii) may redact the name of the consumer or business and any other information that
457     could, in the division's judgment, disclose the identity of the consumer or business filing the
458     consumer complaint.]
459          [(f) A person's initial, written response to a consumer complaint that is subject to
460     Subsection (4)(c) is a public record.]
461          Section 7. Section 13-15-302, which is renumbered from Section 13-15-6 is
462     renumbered and amended to read:
463          [13-15-6].      13-15-302. Private right of action.
464          [(1) If a seller fails to file the disclosures required under Section 13-15-4, or fails after
465     demand by the division to file the disclosure within 15 days, the division, consistent with
466     Section 13-2-5, shall begin adjudicative proceedings and shall issue a cease and desist order.]
467          [(2)] (1) [Any] A purchaser [of a business opportunity from] may bring an action in a
468     court of competent jurisdiction against a seller who does not comply with this chapter.
469          (2) If a court of competent jurisdiction finds that a seller violated this chapter, a
470     purchaser who brings an action under Subsection (1) is entitled[, in an appropriate court of
471     competent jurisdiction,] to:
472          (a) rescission of the contract[, to];
473          (b) an award of [a] reasonable [attorney's fee] attorney fees and costs of court in an
474     action to enforce the right of rescission[, and to the]; and
475          (c) an amount equal to the greater of:
476          (i) actual damages; or
477          (ii) $2,000[, whichever is greater].
478          [(3) In the event the division is granted judgment or injunctive relief in an appropriate
479     court of competent jurisdiction, the division, in addition to any other relief, is entitled to an
480     award of reasonable attorney's fees, costs of court, and investigative fees.]
481          [(4) (a) In addition to other penalties under this chapter, and to its other enforcement
482     powers under Title 13, Chapter 2, Division of Consumer Protection, the division director may
483     impose an administrative fine of up to $2,500 for each violation of this chapter.]
484          [(b) All money received through administrative fines imposed under this section shall
485     be deposited in the Consumer Protection Education and Training Fund created by Section
486     13-2-8.]
487          Section 8. Section 13-15-401 is enacted to read:
488     
Part 4. Miscellaneous

489          13-15-401. Consumer complaints.
490          (1) As used in this section, "consumer complaint" means a complaint that:
491          (a) a consumer or business files with the division;
492          (b) alleges facts relating to conduct that the division regulates under this chapter; and
493          (c) (i) alleges a loss to the consumer or business described in Subsection (1)(a) of
494     $3,500 or more; or
495          (ii) is one of at least 50 complaints filed with the division:
496          (A) against the same person; and
497          (B) during the four-year period immediately before the day on which the consumer or
498     business described in Subsection (1)(a) files the complaint.
499          (2) For purposes of determining the number of complaints against the same person
500     under Subsection (1)(c)(ii)(A), the division may consider complaints filed against multiple
501     corporations, limited liability companies, partnerships, or other business entities under
502     common ownership to be complaints against the same person.
503          (3) Notwithstanding Subsection 13-11-7(2) and subject to Subsections (4) and (5), a
504     consumer complaint:
505          (a) is a public record; and
506          (b) may not be classified as a private, controlled, or protected record under Title 63G,
507     Chapter 2, Government Records Access and Management Act.
508          (4) Subsection (3) does not apply to a consumer complaint:
509          (a) that is nonmeritorious, beginning the day on which:
510          (i) the division determines through an administrative proceeding that the consumer
511     complaint is nonmeritorious; or
512          (ii) a court of competent jurisdiction finds the complaint nonmeritorious; or
513          (b) that is on file with the division for more than four years after the day on which the
514     person files the complaint.
515          (5) Before making a consumer complaint that is subject to Subsection (3) or a response
516     described in Subsection (6) available to the public, the division:
517          (a) shall redact from the consumer complaint and the seller's response any information
518     that would disclose:
519          (i) the consumer or seller's:
520          (A) address;
521          (B) social security number;
522          (C) bank account information;
523          (D) email address; or
524          (E) telephone number; or
525          (ii) information similar in nature to the information described in Subsection (5)(a)(i);
526     and
527          (b) may redact the name of the consumer or business and any other information that
528     could, in the division's judgment, disclose the identity of the consumer or business filing the
529     consumer complaint.
530          (6) A seller's initial, written response to a consumer complaint that is subject to
531     Subsection (3) is a public record.
532          Section 9. Repealer.
533          This bill repeals:
534          Section 13-15-4.5, Notice of exemption filing.
535          Section 13-15-7, Civil penalty for violation of cease and desist order.