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7 LONG TITLE
8 General Description:
9 This bill repeals the Unfair Practices Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ repeals the Unfair Practices Act;
13 ▸ amends provisions related to the Unfair Practices Act; and
14 ▸ makes technical and conforming changes.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 This bill provides a special effective date.
19 Utah Code Sections Affected:
20 AMENDS:
21 13-2-1 (Superseded 12/31/23), as last amended by Laws of Utah 2022, Chapters 201
22 13-2-1 (Effective 12/31/23), as last amended by Laws of Utah 2022, Chapters 201 and
23 462
24 41-3-201, as last amended by Laws of Utah 2018, Chapter 387
25 59-14-509, as enacted by Laws of Utah 2009, Chapter 341
26 59-14-608, as enacted by Laws of Utah 2005, Chapter 204
27 59-14-808, as enacted by Laws of Utah 2020, Chapter 347
28 REPEALS:
29 13-5-1, Utah Code Annotated 1953
30 13-5-2, Utah Code Annotated 1953
31 13-5-2.5, as last amended by Laws of Utah 1987, Chapter 161
32 13-5-3, as last amended by Laws of Utah 2010, Chapter 378
33 13-5-4, Utah Code Annotated 1953
34 13-5-5, Utah Code Annotated 1953
35 13-5-6, Utah Code Annotated 1953
36 13-5-8, as last amended by Laws of Utah 1993, Chapter 4
37 13-5-9, as last amended by Laws of Utah 2008, Chapter 351
38 13-5-10, Utah Code Annotated 1953
39 13-5-11, Utah Code Annotated 1953
40 13-5-12, as last amended by Laws of Utah 2010, Chapter 378
41 13-5-13, Utah Code Annotated 1953
42 13-5-14, as last amended by Laws of Utah 1983, Chapter 58
43 13-5-15, as last amended by Laws of Utah 1983, Chapter 58
44 13-5-16, as last amended by Laws of Utah 2010, Chapter 378
45 13-5-17, Utah Code Annotated 1953
46 13-5-18, Utah Code Annotated 1953
47
48 Be it enacted by the Legislature of the state of Utah:
49 Section 1. Section 13-2-1 (Superseded 12/31/23) is amended to read:
50 13-2-1 (Superseded 12/31/23). Consumer protection division established --
51 Functions.
52 (1) There is established within the Department of Commerce the Division of Consumer
53 Protection.
54 (2) The division shall administer and enforce the following:
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67 Transaction Information Act;
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79 Section 2. Section 13-2-1 (Effective 12/31/23) is amended to read:
80 13-2-1 (Effective 12/31/23). Consumer protection division established --
81 Functions.
82 (1) There is established within the Department of Commerce the Division of Consumer
83 Protection.
84 (2) The division shall administer and enforce the following:
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97 Transaction Information Act;
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110 Section 3. Section 41-3-201 is amended to read:
111 41-3-201. Licenses required -- Restitution -- Education.
112 (1) As used in this section, "new applicant" means a person who is applying for a
113 license that the person has not been issued during the previous licensing year.
114 (2) A person may not act as any of the following without having procured a license
115 issued by the administrator:
116 (a) a dealer;
117 (b) salvage vehicle buyer;
118 (c) salesperson;
119 (d) manufacturer;
120 (e) transporter;
121 (f) dismantler;
122 (g) distributor;
123 (h) factory branch and representative;
124 (i) distributor branch and representative;
125 (j) crusher;
126 (k) remanufacturer; or
127 (l) body shop.
128 (3) (a) Except as provided in Subsection (3)(c), a person may not bid on or purchase a
129 vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 at or
130 through a motor vehicle auction unless the person is a licensed salvage vehicle buyer.
131 (b) Except as provided in Subsection (3)(c), a person may not offer for sale, sell, or
132 exchange a vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001
133 at or through a motor vehicle auction except to a licensed salvage vehicle buyer.
134 (c) A person may offer for sale, sell, or exchange a vehicle with a nonrepairable or
135 salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction:
136 (i) to an out-of-state or out-of-country purchaser not licensed under this section, but
137 that is authorized to do business in the domestic or foreign jurisdiction in which the person is
138 domiciled or registered to do business;
139 (ii) subject to the restrictions in Subsection (3)(d), to an in-state purchaser not licensed
140 under this section that:
141 (A) has a valid business license in Utah; and
142 (B) has a Utah sales tax license; and
143 (iii) to a crusher.
144 (d) (i) An operator of a motor vehicle auction shall verify that an in-state purchaser not
145 licensed under this section has the licenses required in Subsection (3)(c)(ii).
146 (ii) An operator of a motor vehicle auction may only offer for sale, sell, or exchange
147 five vehicles with a salvage certificate as defined in Section 41-1a-1001 at or through a motor
148 vehicle auction in any 12-month period to an in-state purchaser that does not have a salvage
149 vehicle buyer license issued in accordance with Subsection 41-3-202(17).
150 (iii) The five vehicle limitation under this Subsection (3)(d) applies to each Utah sales
151 tax license and not to each person with the authority to use a sales tax license.
152 (iv) An operator of a motor vehicle auction may not sell a vehicle with a nonrepairable
153 certificate as defined in Section 41-1a-1001 to a purchaser otherwise allowed to purchase a
154 vehicle under Subsection (3)(c)(ii).
155 (e) For a vehicle with a salvage certificate purchased under Subsection (3)(c)(ii), an
156 operator of a motor vehicle auction shall:
157 (i) (A) until Subsection (3)(e)(i)(B) applies, make application for a salvage certificate
158 of title on behalf of the Utah purchaser within seven days of the purchase if the purchaser does
159 not have a salvage vehicle buyer license, dealer license, body shop license, or dismantler
160 license issued in accordance with Section 41-3-202; or
161 (B) beginning on or after the date that the Motor Vehicle Division has implemented the
162 Motor Vehicle Division's GenTax system, make application electronically, in a form and time
163 period approved by the Motor Vehicle Division, for a salvage certificate of title to be issued in
164 the name of the purchaser;
165 (ii) give to the purchaser a disclosure printed on a separate piece of paper that states:
166 "THIS DISCLOSURE STATEMENT MUST BE GIVEN BY THE SELLER TO THE
167 BUYER EVERY TIME THIS VEHICLE IS RESOLD WITH A SALVAGE CERTIFICATE
168 Vehicle Identification Number (VIN)
169 Year: Make: Model:
170 SALVAGE VEHICLE--NOT FOR RESALE WITHOUT DISCLOSURE
171 WARNING: THIS SALVAGE VEHICLE MAY NOT BE SAFE FOR OPERATION
172 UNLESS PROPERLY REPAIRED. SOME STATES MAY REQUIRE AN INSPECTION
173 BEFORE THIS VEHICLE MAY BE REGISTERED. THE STATE OF UTAH MAY
174 REQUIRE THIS VEHICLE TO BE PERMANENTLY BRANDED AS A REBUILT
175 SALVAGE VEHICLE. OTHER STATES MAY ALSO PERMANENTLY BRAND THE
176 CERTIFICATE OF TITLE.
177 _________________________________________________________________
178 Signature of Purchaser Date"; and
179 (iii) if applicable, provide evidence to the Motor Vehicle Division of:
180 (A) payment of sales taxes on taxable sales in accordance with Section 41-1a-510;
181 (B) the identification number inspection required under Section 41-1a-511; and
182 (C) the odometer disclosure statement required under Section 41-1a-902.
183 (f) The Motor Vehicle Division shall include a link to the disclosure statement
184 described in Subsection (3)(e)(ii) on its website.
185 (g) The commission may impose an administrative entrance fee established in
186 accordance with the procedures and requirements of Section 63J-1-504 not to exceed $10 on a
187 person not holding a license described in Subsection (3)(e)(i) that enters the physical premises
188 of a motor vehicle auction for the purpose of viewing available salvage vehicles prior to an
189 auction.
190 (h) A vehicle sold at or through a motor vehicle auction to an out-of-state purchaser
191 with a nonrepairable or salvage certificate may not be certificated in Utah until the vehicle has
192 been certificated out-of-state.
193 (4) (a) An operator of a motor vehicle auction shall keep a record of the sale of each
194 salvage vehicle.
195 (b) A record described under Subsection (4)(a) shall contain:
196 (i) the purchaser's name and address; and
197 (ii) the year, make, and vehicle identification number for each salvage vehicle sold.
198 (c) An operator of a motor vehicle auction shall:
199 (i) provide the record described in Subsection (4)(a) electronically in a method
200 approved by the division to the division within two business days of the completion of the
201 motor vehicle auction;
202 (ii) retain the record described in this Subsection (4) for five years from the date of
203 sale; and
204 (iii) make a record described in this Subsection (4) available for inspection by the
205 division at the location of the motor vehicle auction during normal business hours.
206 (5) (a) An operator of a motor vehicle auction shall store a salvage vehicle sold at
207 auction in a secure facility until the salvage vehicle is claimed as provided in this section.
208 (b) Beginning at the time of purchase and until the salvage vehicle is claimed, the
209 motor vehicle auction operator may collect a daily storage fee for the secure storage of each
210 salvage vehicle sold at auction.
211 (c) Except as provided in Subsection (5)(d), before releasing possession of a salvage
212 vehicle purchased at a motor vehicle auction to a person not licensed under this part or certified
213 as a tow truck operator under Title 72, Chapter 9, Part 6, Tow Truck Provisions, and if the
214 person claiming the vehicle is a person other than the purchaser of the vehicle, the motor
215 vehicle auction operator shall create a record that shall contain:
216 (i) the name and address, as verified by government issued identification, of the person
217 claiming the vehicle;
218 (ii) the year, make, and vehicle identification number of the claimed vehicle;
219 (iii) a written statement from the person claiming the vehicle indicating the location
220 where the salvage vehicle will be delivered; and
221 (iv) verification that the claimant has authorization from the purchaser to claim the
222 vehicle.
223 (d) If the salvage vehicle is claimed by a transporter or a tow truck operator, the
224 transporter or the tow truck operator shall submit to the motor vehicle auction operator a
225 written record on any release forms indicating the location where the salvage vehicle will be
226 delivered if delivered within the state.
227 (e) An operator of a motor vehicle auction shall:
228 (i) retain the record described in Subsection (5)(c) for five years from the date of sale;
229 and
230 (ii) make the record available for inspection by the division at the location of the motor
231 vehicle auction during normal business hours.
232 (6) (a) If applicable, an operator of a motor vehicle auction shall comply with the
233 reporting requirements of the National Motor Vehicle Title Information System overseen by
234 the United States Department of Justice if the person sells a vehicle with a salvage certificate to
235 an in-state purchaser under Subsection (3)(c)(ii).
236 (b) The Motor Vehicle Division shall include a link to the National Motor Vehicle
237 Title Information System on its website.
238 (7) (a) An operator of a motor vehicle auction that sells a salvage vehicle to a person
239 that is an out-of-country buyer shall:
240 (i) stamp on the face of the title so as not to obscure the name, date, or mileage
241 statement the words "FOR EXPORT ONLY" in all capital, black letters; and
242 (ii) stamp in each unused reassignment space on the back of the title the words "FOR
243 EXPORT ONLY."
244 (b) The words "FOR EXPORT ONLY" shall be:
245 (i) at least two inches wide; and
246 (ii) clearly legible.
247 (8) A dealer, manufacturer, remanufacturer, transporter, dismantler, crusher, or body
248 shop shall obtain a supplemental license, in accordance with Section 41-3-201.7 for each
249 additional place of business maintained by the licensee.
250 (9) (a) A person who has been convicted of any law relating to motor vehicle
251 commerce or motor vehicle fraud may not be issued a license or purchase a vehicle with a
252 salvage or nonrepairable certificate unless full restitution regarding those convictions has been
253 made.
254 (b) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a
255 vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection (9)(a) if
256 the division has informed the operator of the motor vehicle auction, the dealer, or the consignor
257 in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable or
258 salvage certificate under Subsection (9)(a).
259 (10) (a) The division may not issue a license to a new applicant for a new or used
260 motor vehicle dealer license, a direct-sale manufacturer license, a new or used motorcycle
261 dealer license, or a small trailer dealer license unless the new applicant completes an eight-hour
262 orientation class approved by the division that includes education on motor vehicle laws and
263 rules.
264 (b) The approved costs of the orientation class shall be paid by the new applicant.
265 (c) The class shall be completed by the new applicant and the applicant's partners,
266 corporate officers, bond indemnitors, and managers.
267 (d) (i) The division shall approve:
268 (A) providers of the orientation class; and
269 (B) costs of the orientation class.
270 (ii) A provider of an orientation class shall submit the orientation class curriculum to
271 the division for approval prior to teaching the orientation class.
272 (iii) A provider of an orientation class shall include in the orientation materials:
273 (A) ethics training;
274 (B) motor vehicle title and registration processes;
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281 (11) A person or purchaser described in Subsection (3)(c)(ii):
282 (a) may not purchase more than five salvage vehicles with a nonrepairable or salvage
283 certificate as defined in Section 41-1a-1001 in any 12-month period;
284 (b) may not, without first complying with Section 41-1a-705, offer for sale, sell, or
285 exchange more than two vehicles with a salvage certificate as defined in Section 41-1a-1001 in
286 any 12-month period to a person not licensed under this section; and
287 (c) may not, without first complying with Section 41-1a-705, offer for sale, sell, or
288 exchange a vehicle with a nonrepairable certificate as defined in Section 41-1a-1001 to a
289 person not licensed under this section.
290 (12) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a
291 vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection (11)(a) if
292 the division has informed the operator of the motor vehicle auction, the dealer, or the consignor
293 in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable or
294 salvage certificate under Subsection (11)(a).
295 Section 4. Section 59-14-509 is amended to read:
296 59-14-509. Restrictions on mail order or Internet sales.
297 (1) For purposes of this section:
298 (a) "Distributor" means a person, wherever residing or located, who:
299 (i) is licensed in this state to purchase non-taxed tobacco products; and
300 (ii) stores, sells, or otherwise disposes of tobacco products.
301 (b) "Licensed person" is as defined in Subsection 59-14-409(1).
302 (c) "Order or purchase" includes:
303 (i) by mail or delivery service;
304 (ii) through the Internet or computer network;
305 (iii) by telephone; or
306 (iv) through some other electronic method.
307 (d) "Retailer" means any person who sells tobacco products to consumers for personal
308 consumption.
309 (2) A person, distributor, manufacturer, or retailer shall not:
310 (a) cause tobacco products or cigarettes as defined in Section 59-22-202 to be ordered
311 or purchased by anyone other than a licensed person; or
312 (b) knowingly provide substantial assistance to a person who violates this section.
313 (3) (a) Each order or purchase of a tobacco product or cigarettes as defined in Section
314 59-22-202 in violation of Subsection (2) shall constitute a separate violation under this section.
315 (b) In addition to the penalties in Subsection (4), a person who violates this section is
316 subject to:
317 (i) a civil penalty in an amount not to exceed $5,000 for each violation of this section;
318 (ii) an injunction to restrain a threatened or actual violation of this section; and
319 (iii) recovery by the state for:
320 (A) the costs of investigation;
321 (B) the cost of expert witness fees;
322 (C) the cost of the action; and
323 (D) reasonable attorney's fees.
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326 shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged
327 and paid to the state treasurer for deposit in the General Fund.
328 Section 5. Section 59-14-608 is amended to read:
329 59-14-608. License revocation and penalties.
330 (1) (a) The commission may revoke or suspend the license of a stamping agent in the
331 manner provided in Section 59-14-202 if the commission determines that the stamping agent
332 has violated Sections 59-14-604, 59-14-606, or other rule adopted under the provisions of this
333 part.
334 (b) The penalty imposed under Subsection (1)(a) is in addition to or in lieu of any other
335 civil or criminal remedy provided by law.
336 (c) Each stamp affixed and each sale or offer to sell cigarettes in violation of Section
337 59-14-604, or other rule adopted under the provisions of this part, shall constitute a separate
338 violation.
339 (d) For each violation under Subsection (1)(c), the commissioner may, in addition to
340 the penalty imposed by Subsection (1)(a), impose a civil penalty in an amount not to exceed the
341 greater of 500% of the retail value of the cigarettes or $5,000.
342 (2) (a) Any cigarettes that have been sold, offered for sale, or possessed for sale, in this
343 state, or imported for personal consumption in this state, in violation of Section 59-14-604 are:
344 (i) contraband under Section 59-14-213; and
345 (ii) subject to seizure and forfeiture as provided in Section 59-14-213.
346 (b) Cigarettes seized and forfeited under the provisions of this section shall be
347 destroyed and not resold.
348 (3) (a) The commission may seek an injunction to:
349 (i) restrain a threatened or actual violation of this part by a stamping agent; or
350 (ii) to compel the stamping agent to comply with this part.
351 (b) In any action brought pursuant to this section, the state is entitled to recover the
352 costs of investigation, costs of the action, and reasonable attorney fees.
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355 Section 6. Section 59-14-808 is amended to read:
356 59-14-808. Restrictions on mail order or Internet sales.
357 (1) For purposes of this section:
358 (a) "Distributor" means a person, wherever residing or located, who:
359 (i) is licensed in this state to purchase a non-taxed nicotine product or a non-taxed
360 electronic cigarette product; and
361 (ii) stores, sells, or otherwise disposes of a nicotine product or an electronic cigarette
362 product.
363 (b) "Licensed person" means the same as that term is defined in Section 59-14-409.
364 (c) "Order or purchase" includes:
365 (i) by mail or delivery service;
366 (ii) through the Internet or computer network;
367 (iii) by telephone; or
368 (iv) through some other electronic method.
369 (d) "Retailer" means any person who sells a nicotine product or an electronic cigarette
370 product to consumers for personal consumption.
371 (2) A person, distributor, manufacturer, or retailer shall not:
372 (a) cause a nicotine product or an electronic cigarette product to be ordered or
373 purchased by anyone other than a licensed person; or
374 (b) knowingly provide substantial assistance to a person who violates this section.
375 (3) (a) Each order or purchase of a nicotine product or an electronic cigarette product in
376 violation of Subsection (2) constitutes a separate violation under this section.
377 (b) In addition to the penalties in Subsection (4), a person who violates this section is
378 subject to:
379 (i) a civil penalty in an amount not to exceed $5,000 for each violation of this section;
380 (ii) an injunction to restrain a threatened or actual violation of this section; and
381 (iii) recovery by the state for:
382 (A) the costs of investigation;
383 (B) the cost of expert witness fees;
384 (C) the cost of the action; and
385 (D) reasonable attorney's fees.
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388 shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged
389 and paid to the state treasurer for deposit in the General Fund.
390 Section 7. Repealer.
391 This bill repeals:
392 Section 13-5-1, Short title.
393 Section 13-5-2,"Person" defined.
394 Section 13-5-2.5, Procedure to prevent unfair competition.
395 Section 13-5-3, Unlawful discriminations -- Burden of proof -- Taking or offering
396 commissions -- Payments for benefit of customers -- Discrimination among purchasers --
397 Inducing discriminations.
398 Section 13-5-4, Return of net earnings or surplus by cooperatives to members.
399 Section 13-5-5,"Commerce" defined.
400 Section 13-5-6, Liability of agents.
401 Section 13-5-8, Advertising goods not prepared to supply.
402 Section 13-5-9, Limitation on quantity of article or product sold or offered for sale
403 to any one customer.
404 Section 13-5-10, Cost -- Purchase price at forced sales.
405 Section 13-5-11, Proceedings -- Local cost surveys as evidence.
406 Section 13-5-12, Sales exempt from chapter.
407 Section 13-5-13, Contracts in violation declared illegal.
408 Section 13-5-14, Injunctive relief -- Damages -- Immunity.
409 Section 13-5-15, Penalty for violation of chapter.
410 Section 13-5-16, Separability clause.
411 Section 13-5-17, Policy of act.
412 Section 13-5-18, Cost -- Separate entities of business.
413 Section 8. Effective date.
414 This bill takes effect on May 3, 2023, except that the amendments to Section 13-2-1
415 (Effective 12/31/23) take effect on December 31, 2023.