UT
Utah House Bill HB0382

Utah 2023 Regular Session

Utah House Bill HB0382 Compare Versions

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1-3rd Sub. H.B. 382
1+2nd Sub. H.B. 382
22 LEGISLATIVE GENERAL COUNSEL
33 6 Approved for Filing: E.A. Evans 6
4-6 02-16-23 4:43 PM 6
4+6 02-14-23 11:00 AM 6
55 H.B. 382
6-3rd Sub. (Cherry)
6+2nd Sub. (Gray)
77 Representative Cheryl K. Acton proposes the following substitute bill:
88 1 AUTOMATIC RENEWAL CONTRACT REQUI REMENTS
99 2 2023 GENERAL SESSION
1010 3 STATE OF UTAH
1111 4 Chief Sponsor: Cheryl K. Acton
12-5 Senate Sponsor: Daniel W. Thatcher
12+5 Senate Sponsor: ____________
1313 6
1414 7LONG TITLE
1515 8General Description:
1616 9 This bill addresses automatic renewal contract requirements.
1717 10Highlighted Provisions:
1818 11 This bill:
1919 12 <defines terms;
2020 13 <requires a person who offers a contract with an automatic renewal provision to
2121 14disclose certain information to the consumer regarding the renewal and cancellation
2222 15of the contract;
2323 16 <requires a person who offers a trial period offer to disclose certain information to
2424 17the consumer regarding the expiration of the trial period and purchase obligations
2525 18upon expiration;
2626 19 <authorizes the Division of Consumer Protection (division) to enforce the provisions
2727 20in this bill;
2828 21 <provides fines and civil penalties for a violation of the provisions in this bill;
2929 22 <requires fines and civil penalties received by the division for a violation of the
3030 23provisions in this bill to be placed in the Consumer Protection Education and
3131 24Training Fund;
3232 25 <grants administrative rulemaking authority; and
33-*HB0382S03* 3rd Sub. (Cherry) H.B. 382 02-16-23 4:43 PM
33+*HB0382S02* 2nd Sub. (Gray) H.B. 382 02-14-23 11:00 AM
3434 - 2 -
3535 26 <makes technical and conforming changes.
3636 27Money Appropriated in this Bill:
3737 28 None
3838 29Other Special Clauses:
3939 30 This bill provides a special effective date.
4040 31Utah Code Sections Affected:
4141 32AMENDS:
42-33 13-2-1 (Effective 12/31/23), as last amended by Laws of Utah 2022, Chapters 201, 462
43-34ENACTS:
44-35 13-63-101, Utah Code Annotated 1953
45-36 13-63-201, Utah Code Annotated 1953
46-37 13-63-301, Utah Code Annotated 1953
47-38
48-39Be it enacted by the Legislature of the state of Utah:
49-40 Section 1. Section 13-2-1 (Effective 12/31/23) is amended to read:
50-41 13-2-1 (Effective 12/31/23). Consumer protection division established --
51-42Functions.
52-43 (1) There is established within the Department of Commerce the Division of Consumer
53-44Protection.
54-45 (2) The division shall administer and enforce the following:
55-46 (a) Chapter 5, Unfair Practices Act;
56-47 (b) Chapter 10a, Music Licensing Practices Act;
57-48 (c) Chapter 11, Utah Consumer Sales Practices Act;
58-49 (d) Chapter 15, Business Opportunity Disclosure Act;
59-50 (e) Chapter 20, New Motor Vehicle Warranties Act;
60-51 (f) Chapter 21, Credit Services Organizations Act;
61-52 (g) Chapter 22, Charitable Solicitations Act;
62-53 (h) Chapter 23, Health Spa Services Protection Act;
63-54 (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
64-55 (j) Chapter 26, Telephone Fraud Prevention Act;
65-56 (k) Chapter 28, Prize Notices Regulation Act; 02-16-23 4:43 PM 3rd Sub. (Cherry) H.B. 382
42+33 13-2-1 (Superseded 12/31/23), as last amended by Laws of Utah 2022, Chapter 201
43+34 13-2-1 (Effective 12/31/23), as last amended by Laws of Utah 2022, Chapters 201, 462
44+35ENACTS:
45+36 13-63-101, Utah Code Annotated 1953
46+37 13-63-201, Utah Code Annotated 1953
47+38 13-63-301, Utah Code Annotated 1953
48+39
49+40Be it enacted by the Legislature of the state of Utah:
50+41 Section 1. Section 13-2-1 (Superseded 12/31/23) is amended to read:
51+42 13-2-1 (Superseded 12/31/23). Consumer protection division established --
52+43Functions.
53+44 (1) There is established within the Department of Commerce the Division of Consumer
54+45Protection.
55+46 (2) The division shall administer and enforce the following:
56+47 (a) Chapter 5, Unfair Practices Act;
57+48 (b) Chapter 10a, Music Licensing Practices Act;
58+49 (c) Chapter 11, Utah Consumer Sales Practices Act;
59+50 (d) Chapter 15, Business Opportunity Disclosure Act;
60+51 (e) Chapter 20, New Motor Vehicle Warranties Act;
61+52 (f) Chapter 21, Credit Services Organizations Act;
62+53 (g) Chapter 22, Charitable Solicitations Act;
63+54 (h) Chapter 23, Health Spa Services Protection Act;
64+55 (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
65+56 (j) Chapter 26, Telephone Fraud Prevention Act; 02-14-23 11:00 AM 2nd Sub. (Gray) H.B. 382
6666 - 3 -
67-57 (l) Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter
68-58Transaction Information Act;
69-59 (m) Chapter 34, Utah Postsecondary Proprietary School Act;
70-60 (n) Chapter 34a, Utah Postsecondary School State Authorization Act;
71-61 (o) Chapter 41, Price Controls During Emergencies Act;
72-62 (p) Chapter 42, Uniform Debt-Management Services Act;
73-63 (q) Chapter 49, Immigration Consultants Registration Act;
74-64 (r) Chapter 51, Transportation Network Company Registration Act;
75-65 (s) Chapter 52, Residential Solar Energy Disclosure Act;
76-66 (t) Chapter 53, Residential, Vocational and Life Skills Program Act;
77-67 (u) Chapter 54, Ticket Website Sales Act;
78-68 (v) Chapter 56, Ticket Transferability Act;
79-69 (w) Chapter 57, Maintenance Funding Practices Act; [and]
80-70 (x) Chapter 61, Utah Consumer Privacy Act[.]; and
81-71 (y) Chapter 63, Automatic Renewal Contracts Act.
82-72 Section 2. Section 13-63-101 is enacted to read:
83-73 CHAPTER 63. AUTOMATIC RENEWAL CONTRACTS ACT
84-74 Part 1. General Provisions
85-75 13-63-101. Definitions.
86-76 As used in this chapter:
87-77 (1) "Automatic renewal provision" means a provision under a contract that is
88-78automatically renewed at the end of a definite term for a subsequent term that is longer than 45
89-79days.
90-80 (2) "Clearly and conspicuously disclose" means to disclose:
91-81 (a) in print:
92-82 (i) in larger type than the surrounding text;
93-83 (ii) in contrasting type, font, or color to the surrounding text of the same size; or
94-84 (iii) in a manner set off from the surrounding text of the same size by symbols or other
95-85marks that clearly call attention to the language; or
96-86 (b) through audio, in a volume and cadence sufficient to be readily audible and
97-87understandable. 3rd Sub. (Cherry) H.B. 382 02-16-23 4:43 PM
67+57 (k) Chapter 28, Prize Notices Regulation Act;
68+58 (l) Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter
69+59Transaction Information Act;
70+60 (m) Chapter 34, Utah Postsecondary Proprietary School Act;
71+61 (n) Chapter 34a, Utah Postsecondary School State Authorization Act;
72+62 (o) Chapter 41, Price Controls During Emergencies Act;
73+63 (p) Chapter 42, Uniform Debt-Management Services Act;
74+64 (q) Chapter 49, Immigration Consultants Registration Act;
75+65 (r) Chapter 51, Transportation Network Company Registration Act;
76+66 (s) Chapter 52, Residential Solar Energy Disclosure Act;
77+67 (t) Chapter 53, Residential, Vocational and Life Skills Program Act;
78+68 (u) Chapter 54, Ticket Website Sales Act;
79+69 (v) Chapter 56, Ticket Transferability Act; [and]
80+70 (w) Chapter 57, Maintenance Funding Practices Act[.]; and
81+71 (x) Chapter 63, Automatic Renewal Contracts Act.
82+72 Section 2. Section 13-2-1 (Effective 12/31/23) is amended to read:
83+73 13-2-1 (Effective 12/31/23). Consumer protection division established --
84+74Functions.
85+75 (1) There is established within the Department of Commerce the Division of Consumer
86+76Protection.
87+77 (2) The division shall administer and enforce the following:
88+78 (a) Chapter 5, Unfair Practices Act;
89+79 (b) Chapter 10a, Music Licensing Practices Act;
90+80 (c) Chapter 11, Utah Consumer Sales Practices Act;
91+81 (d) Chapter 15, Business Opportunity Disclosure Act;
92+82 (e) Chapter 20, New Motor Vehicle Warranties Act;
93+83 (f) Chapter 21, Credit Services Organizations Act;
94+84 (g) Chapter 22, Charitable Solicitations Act;
95+85 (h) Chapter 23, Health Spa Services Protection Act;
96+86 (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
97+87 (j) Chapter 26, Telephone Fraud Prevention Act; 2nd Sub. (Gray) H.B. 382 02-14-23 11:00 AM
9898 - 4 -
99-88 (3) "Division" means the Division of Consumer Protection established in Section
100-8913-2-1.
101-90 (4) "Trial period offer" means an offer to provide a period of time to sample or use a
102-91product or service without payment.
103-92 Section 3. Section 13-63-201 is enacted to read:
104-93 Part 2. Automatic Renewal Contract
105-94 13-63-201. Automatic renewal provisions -- Trial period offers -- Notice --
106-95Exceptions.
107-96 (1) Except as provided in Subsection (3), a person who provides an individual a
108-97product or service under a contract with an automatic renewal provision shall provide a notice
109-98to the individual, at least 30 but not more than 60 days before the day on which the automatic
110-99renewal provision renews, that clearly and conspicuously discloses:
111-100 (a) the renewal date;
112-101 (b) the total renewal cost; and
113-102 (c) options for cancellation of the contract.
114-103 (2) Except as provided in Subsection (3), a person who provides an individual a trial
115-104period offer shall provide a notice to the individual, at least three days before the day on which
116-105the period of time under the trial period offer expires, that clearly and conspicuously discloses:
117-106 (a) the trial period offer expiration date; and
118-107 (b) the price to be charged for the product or service, or any further purchase
119-108obligations to be imposed on the individual, after the expiration date.
120-109 (3) This section does not apply to:
121-110 (a) an insurance organization or an affiliate of an insurance organization regulated
122-111under Title 31A, Insurance Code;
123-112 (b) a person providing a service contract, as defined in Section 31A-6a-101;
124-113 (c) a financial institution or an affiliate of a financial institution regulated under Title V
125-114of the Gramm-Leach-Bliley Act, 15 U.S.C. Sec. 6801 et seq.;
126-115 (d) a public utility, as defined in Section 54-2-1; or
127-116 (e) an entity or an affiliate of the entity that provides services regulated by the Federal
128-117Communications Commission, Federal Energy Regulatory Commission, or federal
129-118Professional Services Council. 02-16-23 4:43 PM 3rd Sub. (Cherry) H.B. 382
99+88 (k) Chapter 28, Prize Notices Regulation Act;
100+89 (l) Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter
101+90Transaction Information Act;
102+91 (m) Chapter 34, Utah Postsecondary Proprietary School Act;
103+92 (n) Chapter 34a, Utah Postsecondary School State Authorization Act;
104+93 (o) Chapter 41, Price Controls During Emergencies Act;
105+94 (p) Chapter 42, Uniform Debt-Management Services Act;
106+95 (q) Chapter 49, Immigration Consultants Registration Act;
107+96 (r) Chapter 51, Transportation Network Company Registration Act;
108+97 (s) Chapter 52, Residential Solar Energy Disclosure Act;
109+98 (t) Chapter 53, Residential, Vocational and Life Skills Program Act;
110+99 (u) Chapter 54, Ticket Website Sales Act;
111+100 (v) Chapter 56, Ticket Transferability Act;
112+101 (w) Chapter 57, Maintenance Funding Practices Act; [and]
113+102 (x) Chapter 61, Utah Consumer Privacy Act[.]; and
114+103 (y) Chapter 63, Automatic Renewal Contracts Act.
115+104 Section 3. Section 13-63-101 is enacted to read:
116+105 CHAPTER 63. AUTOMATIC RENEWAL CONTRACTS ACT
117+106 Part 1. General Provisions
118+107 13-63-101. Definitions.
119+108 As used in this chapter:
120+109 (1) "Automatic renewal provision" means a provision under a contract that is
121+110automatically renewed at the end of a definite term for a subsequent term that is longer than 45
122+111days.
123+112 (2) "Clearly and conspicuously disclose" means to disclose:
124+113 (a) in print:
125+114 (i) in larger type than the surrounding text;
126+115 (ii) in contrasting type, font, or color to the surrounding text of the same size; or
127+116 (iii) in a manner set off from the surrounding text of the same size by symbols or other
128+117marks that clearly call attention to the language; or
129+118 (b) through audio, in a volume and cadence sufficient to be readily audible and 02-14-23 11:00 AM 2nd Sub. (Gray) H.B. 382
130130 - 5 -
131-119 Section 4. Section 13-63-301 is enacted to read:
132-120 Part 3. Enforcement
133-121 13-63-301. Administration and enforcement -- Division powers -- Fees --
134-122Rulemaking.
135-123 (1) The division shall administer and enforce this chapter in accordance with Chapter
136-1242, Division of Consumer Protection.
137-125 (2) In addition to the division's enforcement powers under Chapter 2, Division of
138-126Consumer Protection:
139-127 (a) the division director may impose an administrative fine of up to $2,500 for each
140-128violation of this chapter; and
141-129 (b) the division may bring a civil action to enforce this chapter.
142-130 (3) In a civil action by the division to enforce this chapter, the court may:
143-131 (a) declare that an act or practice violates this chapter;
144-132 (b) issue an injunction for a violation of this chapter;
145-133 (c) order disgorgement of any money received after a violation of this chapter;
146-134 (d) order payment of disgorged money to an injured individual;
147-135 (e) impose a civil penalty of up to $2,500 for each violation of this chapter; or
148-136 (f) award any other relief that the court deems reasonable and necessary.
149-137 (4) If a court grants judgment or injunctive relief to the division, the court shall award
150-138the division:
151-139 (a) reasonable attorney fees;
152-140 (b) court costs; and
153-141 (c) investigative fees.
154-142 (5) (a) A person who violates an administrative or court order issued for a violation of
155-143this chapter is subject to a civil penalty of no more than $5,000 for each violation.
156-144 (b) A civil penalty authorized under this section may be imposed in any civil action
157-145brought by the division.
158-146 (c) The division shall deposit money received for the payment of a fine or civil penalty
159-147under this section into the Consumer Protection Education and Training Fund created in
160-148Section 13-2-8.
161-149 (6) The division may make rules in accordance with Title 63G, Chapter 3, Utah 3rd Sub. (Cherry) H.B. 382 02-16-23 4:43 PM
131+119understandable.
132+120 (3) "Division" means the Division of Consumer Protection established in Section
133+12113-2-1.
134+122 (4) "Trial period offer" means an offer to provide a period of time to sample or use a
135+123product or service without payment.
136+124 Section 4. Section 13-63-201 is enacted to read:
137+125 Part 2. Automatic Renewal Contract
138+126 13-63-201. Automatic renewal provisions -- Trial period offers -- Notice --
139+127Exceptions.
140+128 (1) Except as provided in Subsection (3), a person who provides an individual a
141+129product or service under a contract with an automatic renewal provision shall provide a notice
142+130to the individual, at least three but not more than five days before the day on which the
143+131automatic renewal provision renews, that clearly and conspicuously discloses:
144+132 (a) the renewal date;
145+133 (b) the total renewal cost; and
146+134 (c) options for cancellation of the contract.
147+135 (2) Except as provided in Subsection (3), a person who provides an individual a trial
148+136period offer shall provide a notice to the individual, at least three but not more than five days
149+137before the day on which the period of time under the trial period offer expires, that clearly and
150+138conspicuously discloses:
151+139 (a) the trial period offer expiration date; and
152+140 (b) the price to be charged for the product or service, or any further purchase
153+141obligations to be imposed on the individual, after the expiration date.
154+142 (3) This section does not apply to:
155+143 (a) an insurance organization or an affiliate of an insurance organization regulated
156+144under Title 31A, Insurance Code;
157+145 (b) a person providing a service contract, as defined in Section 31A-6a-101;
158+146 (c) a financial institution or an affiliate of a financial institution regulated under Title V
159+147of the Gramm-Leach-Bliley Act, 15 U.S.C. Sec. 6801 et seq.;
160+148 (d) a person providing a contract for electricity, gas, water, sewer, or another utility
161+149service; or 2nd Sub. (Gray) H.B. 382 02-14-23 11:00 AM
162162 - 6 -
163-150Administrative Rulemaking Act, to enforce this chapter.
164-151 Section 5. Effective date.
165-152 This bill takes effect on January 1, 2024.
163+150 (e) an entity providing services regulated by the Federal Communications Commission,
164+151Federal Energy Regulatory Commission, or federal Professional Services Council.
165+152 Section 5. Section 13-63-301 is enacted to read:
166+153 Part 3. Enforcement
167+154 13-63-301. Administration and enforcement -- Division powers -- Fees --
168+155Rulemaking.
169+156 (1) The division shall administer and enforce this chapter in accordance with Chapter
170+1572, Division of Consumer Protection.
171+158 (2) In addition to the division's enforcement powers under Chapter 2, Division of
172+159Consumer Protection:
173+160 (a) the division director may impose an administrative fine of up to $2,500 for each
174+161violation of this chapter; and
175+162 (b) the division may bring a civil action to enforce this chapter.
176+163 (3) In a civil action by the division to enforce this chapter, the court may:
177+164 (a) declare that an act or practice violates this chapter;
178+165 (b) issue an injunction for a violation of this chapter;
179+166 (c) order disgorgement of any money received after a violation of this chapter;
180+167 (d) order payment of disgorged money to an injured individual;
181+168 (e) impose a civil penalty of up to $2,500 for each violation of this chapter; or
182+169 (f) award any other relief that the court deems reasonable and necessary.
183+170 (4) If a court grants judgment or injunctive relief to the division, the court shall award
184+171the division:
185+172 (a) reasonable attorney fees;
186+173 (b) court costs; and
187+174 (c) investigative fees.
188+175 (5) (a) A person who violates an administrative or court order issued for a violation of
189+176this chapter is subject to a civil penalty of no more than $5,000 for each violation.
190+177 (b) A civil penalty authorized under this section may be imposed in any civil action
191+178brought by the division.
192+179 (c) The division shall deposit money received for the payment of a fine or civil penalty
193+180under this section into the Consumer Protection Education and Training Fund created in 02-14-23 11:00 AM 2nd Sub. (Gray) H.B. 382
194+- 7 -
195+181Section 13-2-8.
196+182 (6) The division may make rules in accordance with Title 63G, Chapter 3, Utah
197+183Administrative Rulemaking Act, to enforce this chapter.
198+184 Section 6. Effective date.
199+185 This bill takes effect on May 3, 2023, except that the amendments to Section 13-2-1
200+186(Effective 12/31/23) take effect on December 31, 2023.