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7 LONG TITLE
8 General Description:
9 This bill amends provisions of the Utah Consumer Sales Practices Act relating to class
10 action lawsuits.
11 Highlighted Provisions:
12 This bill:
13 ▸ clarifies provisions relating to targeted solicitations involving financial information;
14 ▸ requires that a court provide notice to the enforcing authority 60 days before a
15 hearing related to a filed offer of settlement in a class action lawsuit;
16 ▸ allows the enforcing authority to intervene in the class action for the limited purpose
17 of objecting to the offer of settlement; and
18 ▸ increases the time period in which the enforcing authority may intervene as an
19 interested party in a class action.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides revisor instructions.
24 Utah Code Sections Affected:
25 AMENDS:
26 13-11-4.1, as enacted by Laws of Utah 2020, Chapter 173
27 13-11-21, as last amended by Laws of Utah 2010, Chapter 324
28 ENACTS:
29 13-11-21.1, Utah Code Annotated 1953
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31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 13-11-4.1 is amended to read:
33 13-11-4.1. Targeted solicitations involving financial information -- Restrictions.
34 (1) As used in this section:
35 (a) "Account holder" means a person for whom a personal account is held by a
36 financial institution.
37 (b) "Financial institution" means:
38 (i) a state or federally chartered:
39 (A) bank;
40 (B) savings and loan association;
41 (C) savings bank;
42 (D) industrial bank; or
43 (E) credit union;
44 (ii) any other institution under the jurisdiction of the commissioner of Financial
45 Institutions as described in Title 7, Financial Institutions Act; or
46 (iii) a person who:
47 (A) is subject to Title 61, Chapter 2c, Utah Residential Mortgage Practices and
48 Licensing Act; and
49 (B) engages in the business of residential mortgage loans as defined in Section
50 61-2c-102.
51 (c) (i) "Specific account information" means information that is:
52 (A) relative to the account of an account holder, in addition to the name of the account
53 holder; and
54 (B) not provided by the financial institution that holds the account holder's account to
55 the person offering a targeted solicitation.
56 (ii) "Specific account information" includes:
57 (A) a loan number;
58 (B) a loan amount; or
59 (C) any other specific account or loan information.
60 (d) "Targeted solicitation" means any written or oral advertisement or solicitation for
61 products or services that:
62 (i) is addressed to an account holder;
63 (ii) contains specific account information;
64 (iii) is offered by a supplier that is not sponsored by or affiliated with the financial
65 institution that holds the account holder's account; and
66 (iv) is not authorized by the financial institution that holds the account holder's
67 account.
68 (2) (a) A supplier who is not the financial institution of an account holder may not
69 represent, directly or indirectly, that the supplier is the financial institution of the account
70 holder.
71 (b) If a presiding officer or court determines appropriate after considering other
72 relevant factors, the following actions by a supplier who is not the financial institution of an
73 account holder establish a presumption that the supplier is representing that the supplier is the
74 financial institution of the account holder in violation of Subsection (2)(a):
75 (i) the use or reference to the name, trade name, or trademark of the financial
76 institution of the account holder, when sending a targeted solicitation, unless the supplier has
77 written authorization from the financial institution;
78 (ii) the placement of specific account information on the outside of an envelope, visible
79 through the envelope window, or on a postcard, when sending a [
80 direct mail; or
81 (iii) the placement of specific account information in the subject line, when sending a
82 targeted solicitation by email.
83 (3) (a) A targeted solicitation, if offered in writing, shall include a clear and
84 conspicuous statement in bold type on the front page of the document containing:
85 (i) the name, address, and telephone number of the supplier offering the targeted
86 solicitation; and
87 (ii) a statement indicating that the supplier offering the targeted solicitation is not
88 sponsored by or affiliated with the financial institution that holds the account holder's account.
89 (b) If the targeted solicitation is offered orally, the supplier offering the targeted
90 solicitation shall verbally communicate the statement described in Subsection (3)(a) at the time
91 the oral solicitation is offered to the account holder.
92 (4) A supplier who violates this section commits a deceptive act or practice under
93 Subsection 13-11-4(1).
94 Section 2. Section 13-11-21 is amended to read:
95 13-11-21. Settlement of class action -- Complaint in class action delivered to
96 enforcing authority.
97 (1) (a) (i) A defendant in a class action may file a written offer of settlement. If it is
98 not accepted within a reasonable time by a plaintiff class representative, the defendant may file
99 an affidavit reciting the rejection.
100 (ii) The court may determine that the offer has enough merit to present to the members
101 of the class. If [
102 whether the offer should be approved.
103 (iii) [
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105 hearing:
106 (A) to the enforcing authority; and
107 (B) [
108 reasonable effort.
109 (iv) The notice described in Subsection (1)(a)(iii) shall specify the terms of the offer
110 and a reasonable period within which members of the class who request it are entitled to be
111 included in the class.
112 (v) The statute of limitations for those who are excluded pursuant to this [
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114 additional year. Within 60 days of receipt of the notice required by this Subsection (1)(a), the
115 enforcing authority may intervene in the class action for the limited purpose of objecting to the
116 offer of settlement.
117 (b) If a member who has previously lost an opportunity to be excluded from the class is
118 excluded at his request in response to notice of the offer of settlement during the period
119 specified under Subsection (1)(a), he may not thereafter participate in a class action for
120 damages respecting the same consumer transaction, unless the court later disapproves the offer
121 of settlement or approves a settlement materially different from that proposed in the original
122 offer of settlement. After the expiration of the period of limitations, a member of the class is
123 not entitled to be excluded from it.
124 (c) If the court later approves the offer of settlement, including changes, if any,
125 required by the court in the interest of a just settlement of the action, it shall enter judgment,
126 which is binding on all persons who are then members of the class. If the court disapproves the
127 offer or approves a settlement materially different from that proposed in the original offer,
128 notice shall be given to a person who was excluded from the action at his request in response to
129 notice of the offer under Subsection (1)(a), and he is entitled to rejoin the class and, in the case
130 of the approval, participate in the settlement.
131 (2) On the commencement of a class action under Section 13-11-19, the class
132 representative shall mail by certified mail with return receipt requested or personally serve a
133 copy of the complaint on the enforcing authority. Within [
134 copy of the complaint, but not thereafter, the enforcing authority may intervene in the class
135 action for purposes of participation as an interested party in litigation of the class action.
136 The following section is affected by a revisor instruction at the end of this bill.
137 Section 3. Section 13-11-21.1 is enacted to read:
138 13-11-21.1. Retrospective Operation.
139 The provisions of this bill apply to any claim for which a court has not issued a final,
140 unappealable judgment or order as of May 1, 2024.
141 Section 4. Effective date.
142 This bill takes effect on May 1, 2024.
143 Section 5. Revisor instructions.
144 The Legislature intends that the reference to "this bill" in Section 13-11-21.1 be
145 replaced with the bill's designated chapter number in the Laws of Utah.