2
3
4
5
6
7 LONG TITLE
8 Committee Note:
9 The Business and Labor Interim Committee recommended this bill.
10 Legislative Vote: 15 voting for 0 voting against 6 absent
11 General Description:
12 This bill repeals the Unfair Practices Act.
13 Highlighted Provisions:
14 This bill:
15 ▸ repeals the Unfair Practices Act;
16 ▸ amends provisions related to the Unfair Practices Act; and
17 ▸ makes technical and conforming changes.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill provides a special effective date.
22 Utah Code Sections Affected:
23 AMENDS:
24 13-2-1 (Superseded 12/31/23), as last amended by Laws of Utah 2022, Chapters 201
25 13-2-1 (Effective 12/31/23), as last amended by Laws of Utah 2022, Chapters 201 and
26 462
27 41-3-201, as last amended by Laws of Utah 2018, Chapter 387
28 59-14-509, as enacted by Laws of Utah 2009, Chapter 341
29 59-14-608, as enacted by Laws of Utah 2005, Chapter 204
30 59-14-808, as enacted by Laws of Utah 2020, Chapter 347
31 REPEALS:
32 13-5-1, Utah Code Annotated 1953
33 13-5-2, Utah Code Annotated 1953
34 13-5-2.5, as last amended by Laws of Utah 1987, Chapter 161
35 13-5-3, as last amended by Laws of Utah 2010, Chapter 378
36 13-5-4, Utah Code Annotated 1953
37 13-5-5, Utah Code Annotated 1953
38 13-5-6, Utah Code Annotated 1953
39 13-5-8, as last amended by Laws of Utah 1993, Chapter 4
40 13-5-9, as last amended by Laws of Utah 2008, Chapter 351
41 13-5-10, Utah Code Annotated 1953
42 13-5-11, Utah Code Annotated 1953
43 13-5-12, as last amended by Laws of Utah 2010, Chapter 378
44 13-5-13, Utah Code Annotated 1953
45 13-5-14, as last amended by Laws of Utah 1983, Chapter 58
46 13-5-15, as last amended by Laws of Utah 1983, Chapter 58
47 13-5-16, as last amended by Laws of Utah 2010, Chapter 378
48 13-5-17, Utah Code Annotated 1953
49 13-5-18, Utah Code Annotated 1953
50
51 Be it enacted by the Legislature of the state of Utah:
52 Section 1. Section 13-2-1 (Superseded 12/31/23) is amended to read:
53 13-2-1 (Superseded 12/31/23). Consumer protection division established --
54 Functions.
55 (1) There is established within the Department of Commerce the Division of Consumer
56 Protection.
57 (2) The division shall administer and enforce the following:
58 [
59 [
60 [
61 [
62 [
63 [
64 [
65 [
66 [
67 [
68 [
69 [
70 Transaction Information Act;
71 [
72 [
73 [
74 [
75 [
76 [
77 [
78 [
79 [
80 [
81 [
82 Section 2. Section 13-2-1 (Effective 12/31/23) is amended to read:
83 13-2-1 (Effective 12/31/23). Consumer protection division established --
84 Functions.
85 (1) There is established within the Department of Commerce the Division of Consumer
86 Protection.
87 (2) The division shall administer and enforce the following:
88 [
89 [
90 [
91 [
92 [
93 [
94 [
95 [
96 [
97 [
98 [
99 [
100 Transaction Information Act;
101 [
102 [
103 [
104 [
105 [
106 [
107 [
108 [
109 [
110 [
111 [
112 [
113 Section 3. Section 41-3-201 is amended to read:
114 41-3-201. Licenses required -- Restitution -- Education.
115 (1) As used in this section, "new applicant" means a person who is applying for a
116 license that the person has not been issued during the previous licensing year.
117 (2) A person may not act as any of the following without having procured a license
118 issued by the administrator:
119 (a) a dealer;
120 (b) salvage vehicle buyer;
121 (c) salesperson;
122 (d) manufacturer;
123 (e) transporter;
124 (f) dismantler;
125 (g) distributor;
126 (h) factory branch and representative;
127 (i) distributor branch and representative;
128 (j) crusher;
129 (k) remanufacturer; or
130 (l) body shop.
131 (3) (a) Except as provided in Subsection (3)(c), a person may not bid on or purchase a
132 vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 at or
133 through a motor vehicle auction unless the person is a licensed salvage vehicle buyer.
134 (b) Except as provided in Subsection (3)(c), a person may not offer for sale, sell, or
135 exchange a vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001
136 at or through a motor vehicle auction except to a licensed salvage vehicle buyer.
137 (c) A person may offer for sale, sell, or exchange a vehicle with a nonrepairable or
138 salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction:
139 (i) to an out-of-state or out-of-country purchaser not licensed under this section, but
140 that is authorized to do business in the domestic or foreign jurisdiction in which the person is
141 domiciled or registered to do business;
142 (ii) subject to the restrictions in Subsection (3)(d), to an in-state purchaser not licensed
143 under this section that:
144 (A) has a valid business license in Utah; and
145 (B) has a Utah sales tax license; and
146 (iii) to a crusher.
147 (d) (i) An operator of a motor vehicle auction shall verify that an in-state purchaser not
148 licensed under this section has the licenses required in Subsection (3)(c)(ii).
149 (ii) An operator of a motor vehicle auction may only offer for sale, sell, or exchange
150 five vehicles with a salvage certificate as defined in Section 41-1a-1001 at or through a motor
151 vehicle auction in any 12-month period to an in-state purchaser that does not have a salvage
152 vehicle buyer license issued in accordance with Subsection 41-3-202(17).
153 (iii) The five vehicle limitation under this Subsection (3)(d) applies to each Utah sales
154 tax license and not to each person with the authority to use a sales tax license.
155 (iv) An operator of a motor vehicle auction may not sell a vehicle with a nonrepairable
156 certificate as defined in Section 41-1a-1001 to a purchaser otherwise allowed to purchase a
157 vehicle under Subsection (3)(c)(ii).
158 (e) For a vehicle with a salvage certificate purchased under Subsection (3)(c)(ii), an
159 operator of a motor vehicle auction shall:
160 (i) (A) until Subsection (3)(e)(i)(B) applies, make application for a salvage certificate
161 of title on behalf of the Utah purchaser within seven days of the purchase if the purchaser does
162 not have a salvage vehicle buyer license, dealer license, body shop license, or dismantler
163 license issued in accordance with Section 41-3-202; or
164 (B) beginning on or after the date that the Motor Vehicle Division has implemented the
165 Motor Vehicle Division's GenTax system, make application electronically, in a form and time
166 period approved by the Motor Vehicle Division, for a salvage certificate of title to be issued in
167 the name of the purchaser;
168 (ii) give to the purchaser a disclosure printed on a separate piece of paper that states:
169 "THIS DISCLOSURE STATEMENT MUST BE GIVEN BY THE SELLER TO THE
170 BUYER EVERY TIME THIS VEHICLE IS RESOLD WITH A SALVAGE CERTIFICATE
171 Vehicle Identification Number (VIN)
172 Year: Make: Model:
173 SALVAGE VEHICLE--NOT FOR RESALE WITHOUT DISCLOSURE
174 WARNING: THIS SALVAGE VEHICLE MAY NOT BE SAFE FOR OPERATION
175 UNLESS PROPERLY REPAIRED. SOME STATES MAY REQUIRE AN INSPECTION
176 BEFORE THIS VEHICLE MAY BE REGISTERED. THE STATE OF UTAH MAY
177 REQUIRE THIS VEHICLE TO BE PERMANENTLY BRANDED AS A REBUILT
178 SALVAGE VEHICLE. OTHER STATES MAY ALSO PERMANENTLY BRAND THE
179 CERTIFICATE OF TITLE.
180 _________________________________________________________________
181 Signature of Purchaser Date"; and
182 (iii) if applicable, provide evidence to the Motor Vehicle Division of:
183 (A) payment of sales taxes on taxable sales in accordance with Section 41-1a-510;
184 (B) the identification number inspection required under Section 41-1a-511; and
185 (C) the odometer disclosure statement required under Section 41-1a-902.
186 (f) The Motor Vehicle Division shall include a link to the disclosure statement
187 described in Subsection (3)(e)(ii) on its website.
188 (g) The commission may impose an administrative entrance fee established in
189 accordance with the procedures and requirements of Section 63J-1-504 not to exceed $10 on a
190 person not holding a license described in Subsection (3)(e)(i) that enters the physical premises
191 of a motor vehicle auction for the purpose of viewing available salvage vehicles prior to an
192 auction.
193 (h) A vehicle sold at or through a motor vehicle auction to an out-of-state purchaser
194 with a nonrepairable or salvage certificate may not be certificated in Utah until the vehicle has
195 been certificated out-of-state.
196 (4) (a) An operator of a motor vehicle auction shall keep a record of the sale of each
197 salvage vehicle.
198 (b) A record described under Subsection (4)(a) shall contain:
199 (i) the purchaser's name and address; and
200 (ii) the year, make, and vehicle identification number for each salvage vehicle sold.
201 (c) An operator of a motor vehicle auction shall:
202 (i) provide the record described in Subsection (4)(a) electronically in a method
203 approved by the division to the division within two business days of the completion of the
204 motor vehicle auction;
205 (ii) retain the record described in this Subsection (4) for five years from the date of
206 sale; and
207 (iii) make a record described in this Subsection (4) available for inspection by the
208 division at the location of the motor vehicle auction during normal business hours.
209 (5) (a) An operator of a motor vehicle auction shall store a salvage vehicle sold at
210 auction in a secure facility until the salvage vehicle is claimed as provided in this section.
211 (b) Beginning at the time of purchase and until the salvage vehicle is claimed, the
212 motor vehicle auction operator may collect a daily storage fee for the secure storage of each
213 salvage vehicle sold at auction.
214 (c) Except as provided in Subsection (5)(d), before releasing possession of a salvage
215 vehicle purchased at a motor vehicle auction to a person not licensed under this part or certified
216 as a tow truck operator under Title 72, Chapter 9, Part 6, Tow Truck Provisions, and if the
217 person claiming the vehicle is a person other than the purchaser of the vehicle, the motor
218 vehicle auction operator shall create a record that shall contain:
219 (i) the name and address, as verified by government issued identification, of the person
220 claiming the vehicle;
221 (ii) the year, make, and vehicle identification number of the claimed vehicle;
222 (iii) a written statement from the person claiming the vehicle indicating the location
223 where the salvage vehicle will be delivered; and
224 (iv) verification that the claimant has authorization from the purchaser to claim the
225 vehicle.
226 (d) If the salvage vehicle is claimed by a transporter or a tow truck operator, the
227 transporter or the tow truck operator shall submit to the motor vehicle auction operator a
228 written record on any release forms indicating the location where the salvage vehicle will be
229 delivered if delivered within the state.
230 (e) An operator of a motor vehicle auction shall:
231 (i) retain the record described in Subsection (5)(c) for five years from the date of sale;
232 and
233 (ii) make the record available for inspection by the division at the location of the motor
234 vehicle auction during normal business hours.
235 (6) (a) If applicable, an operator of a motor vehicle auction shall comply with the
236 reporting requirements of the National Motor Vehicle Title Information System overseen by
237 the United States Department of Justice if the person sells a vehicle with a salvage certificate to
238 an in-state purchaser under Subsection (3)(c)(ii).
239 (b) The Motor Vehicle Division shall include a link to the National Motor Vehicle
240 Title Information System on its website.
241 (7) (a) An operator of a motor vehicle auction that sells a salvage vehicle to a person
242 that is an out-of-country buyer shall:
243 (i) stamp on the face of the title so as not to obscure the name, date, or mileage
244 statement the words "FOR EXPORT ONLY" in all capital, black letters; and
245 (ii) stamp in each unused reassignment space on the back of the title the words "FOR
246 EXPORT ONLY."
247 (b) The words "FOR EXPORT ONLY" shall be:
248 (i) at least two inches wide; and
249 (ii) clearly legible.
250 (8) A dealer, manufacturer, remanufacturer, transporter, dismantler, crusher, or body
251 shop shall obtain a supplemental license, in accordance with Section 41-3-201.7 for each
252 additional place of business maintained by the licensee.
253 (9) (a) A person who has been convicted of any law relating to motor vehicle
254 commerce or motor vehicle fraud may not be issued a license or purchase a vehicle with a
255 salvage or nonrepairable certificate unless full restitution regarding those convictions has been
256 made.
257 (b) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a
258 vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection (9)(a) if
259 the division has informed the operator of the motor vehicle auction, the dealer, or the consignor
260 in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable or
261 salvage certificate under Subsection (9)(a).
262 (10) (a) The division may not issue a license to a new applicant for a new or used
263 motor vehicle dealer license, a direct-sale manufacturer license, a new or used motorcycle
264 dealer license, or a small trailer dealer license unless the new applicant completes an eight-hour
265 orientation class approved by the division that includes education on motor vehicle laws and
266 rules.
267 (b) The approved costs of the orientation class shall be paid by the new applicant.
268 (c) The class shall be completed by the new applicant and the applicant's partners,
269 corporate officers, bond indemnitors, and managers.
270 (d) (i) The division shall approve:
271 (A) providers of the orientation class; and
272 (B) costs of the orientation class.
273 (ii) A provider of an orientation class shall submit the orientation class curriculum to
274 the division for approval prior to teaching the orientation class.
275 (iii) A provider of an orientation class shall include in the orientation materials:
276 (A) ethics training;
277 (B) motor vehicle title and registration processes;
278 [
279 [
280 [
281 [
282 and
283 [
284 (11) A person or purchaser described in Subsection (3)(c)(ii):
285 (a) may not purchase more than five salvage vehicles with a nonrepairable or salvage
286 certificate as defined in Section 41-1a-1001 in any 12-month period;
287 (b) may not, without first complying with Section 41-1a-705, offer for sale, sell, or
288 exchange more than two vehicles with a salvage certificate as defined in Section 41-1a-1001 in
289 any 12-month period to a person not licensed under this section; and
290 (c) may not, without first complying with Section 41-1a-705, offer for sale, sell, or
291 exchange a vehicle with a nonrepairable certificate as defined in Section 41-1a-1001 to a
292 person not licensed under this section.
293 (12) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a
294 vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection (11)(a) if
295 the division has informed the operator of the motor vehicle auction, the dealer, or the consignor
296 in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable or
297 salvage certificate under Subsection (11)(a).
298 Section 4. Section 59-14-509 is amended to read:
299 59-14-509. Restrictions on mail order or Internet sales.
300 (1) For purposes of this section:
301 (a) "Distributor" means a person, wherever residing or located, who:
302 (i) is licensed in this state to purchase non-taxed tobacco products; and
303 (ii) stores, sells, or otherwise disposes of tobacco products.
304 (b) "Licensed person" is as defined in Subsection 59-14-409(1).
305 (c) "Order or purchase" includes:
306 (i) by mail or delivery service;
307 (ii) through the Internet or computer network;
308 (iii) by telephone; or
309 (iv) through some other electronic method.
310 (d) "Retailer" means any person who sells tobacco products to consumers for personal
311 consumption.
312 (2) A person, distributor, manufacturer, or retailer shall not:
313 (a) cause tobacco products or cigarettes as defined in Section 59-22-202 to be ordered
314 or purchased by anyone other than a licensed person; or
315 (b) knowingly provide substantial assistance to a person who violates this section.
316 (3) (a) Each order or purchase of a tobacco product or cigarettes as defined in Section
317 59-22-202 in violation of Subsection (2) shall constitute a separate violation under this section.
318 (b) In addition to the penalties in Subsection (4), a person who violates this section is
319 subject to:
320 (i) a civil penalty in an amount not to exceed $5,000 for each violation of this section;
321 (ii) an injunction to restrain a threatened or actual violation of this section; and
322 (iii) recovery by the state for:
323 (A) the costs of investigation;
324 (B) the cost of expert witness fees;
325 (C) the cost of the action; and
326 (D) reasonable attorney's fees.
327 (4) [
328
329 shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged
330 and paid to the state treasurer for deposit in the General Fund.
331 Section 5. Section 59-14-608 is amended to read:
332 59-14-608. License revocation and penalties.
333 (1) (a) The commission may revoke or suspend the license of a stamping agent in the
334 manner provided in Section 59-14-202 if the commission determines that the stamping agent
335 has violated Sections 59-14-604, 59-14-606, or other rule adopted under the provisions of this
336 part.
337 (b) The penalty imposed under Subsection (1)(a) is in addition to or in lieu of any other
338 civil or criminal remedy provided by law.
339 (c) Each stamp affixed and each sale or offer to sell cigarettes in violation of Section
340 59-14-604, or other rule adopted under the provisions of this part, shall constitute a separate
341 violation.
342 (d) For each violation under Subsection (1)(c), the commissioner may, in addition to
343 the penalty imposed by Subsection (1)(a), impose a civil penalty in an amount not to exceed the
344 greater of 500% of the retail value of the cigarettes or $5,000.
345 (2) (a) Any cigarettes that have been sold, offered for sale, or possessed for sale, in this
346 state, or imported for personal consumption in this state, in violation of Section 59-14-604 are:
347 (i) contraband under Section 59-14-213; and
348 (ii) subject to seizure and forfeiture as provided in Section 59-14-213.
349 (b) Cigarettes seized and forfeited under the provisions of this section shall be
350 destroyed and not resold.
351 (3) (a) The commission may seek an injunction to:
352 (i) restrain a threatened or actual violation of this part by a stamping agent; or
353 (ii) to compel the stamping agent to comply with this part.
354 (b) In any action brought pursuant to this section, the state is entitled to recover the
355 costs of investigation, costs of the action, and reasonable attorney fees.
356 [
357
358 Section 6. Section 59-14-808 is amended to read:
359 59-14-808. Restrictions on mail order or Internet sales.
360 (1) For purposes of this section:
361 (a) "Distributor" means a person, wherever residing or located, who:
362 (i) is licensed in this state to purchase a non-taxed nicotine product or a non-taxed
363 electronic cigarette product; and
364 (ii) stores, sells, or otherwise disposes of a nicotine product or an electronic cigarette
365 product.
366 (b) "Licensed person" means the same as that term is defined in Section 59-14-409.
367 (c) "Order or purchase" includes:
368 (i) by mail or delivery service;
369 (ii) through the Internet or computer network;
370 (iii) by telephone; or
371 (iv) through some other electronic method.
372 (d) "Retailer" means any person who sells a nicotine product or an electronic cigarette
373 product to consumers for personal consumption.
374 (2) A person, distributor, manufacturer, or retailer shall not:
375 (a) cause a nicotine product or an electronic cigarette product to be ordered or
376 purchased by anyone other than a licensed person; or
377 (b) knowingly provide substantial assistance to a person who violates this section.
378 (3) (a) Each order or purchase of a nicotine product or an electronic cigarette product in
379 violation of Subsection (2) constitutes a separate violation under this section.
380 (b) In addition to the penalties in Subsection (4), a person who violates this section is
381 subject to:
382 (i) a civil penalty in an amount not to exceed $5,000 for each violation of this section;
383 (ii) an injunction to restrain a threatened or actual violation of this section; and
384 (iii) recovery by the state for:
385 (A) the costs of investigation;
386 (B) the cost of expert witness fees;
387 (C) the cost of the action; and
388 (D) reasonable attorney's fees.
389 (4) [
390
391 shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged
392 and paid to the state treasurer for deposit in the General Fund.
393 Section 7. Repealer.
394 This bill repeals:
395 Section 13-5-1, Short title.
396 Section 13-5-2,"Person" defined.
397 Section 13-5-2.5, Procedure to prevent unfair competition.
398 Section 13-5-3, Unlawful discriminations -- Burden of proof -- Taking or offering
399 commissions -- Payments for benefit of customers -- Discrimination among purchasers --
400 Inducing discriminations.
401 Section 13-5-4, Return of net earnings or surplus by cooperatives to members.
402 Section 13-5-5,"Commerce" defined.
403 Section 13-5-6, Liability of agents.
404 Section 13-5-8, Advertising goods not prepared to supply.
405 Section 13-5-9, Limitation on quantity of article or product sold or offered for sale
406 to any one customer.
407 Section 13-5-10, Cost -- Purchase price at forced sales.
408 Section 13-5-11, Proceedings -- Local cost surveys as evidence.
409 Section 13-5-12, Sales exempt from chapter.
410 Section 13-5-13, Contracts in violation declared illegal.
411 Section 13-5-14, Injunctive relief -- Damages -- Immunity.
412 Section 13-5-15, Penalty for violation of chapter.
413 Section 13-5-16, Separability clause.
414 Section 13-5-17, Policy of act.
415 Section 13-5-18, Cost -- Separate entities of business.
416 Section 8. Effective date.
417 This bill takes effect on May 3, 2023, except that the amendments to Section 13-2-1
418 (Effective 12/31/23) take effect on December 31, 2023.