H.B. 449
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: E.A. Evans 6
6 02-13-23 9:49 AM 6
H.B. 449
1 FINANCIAL SERVICES REQUIREMENTS
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Ken Ivory
5 Senate Sponsor: ____________
6
7LONG TITLE
8General Description:
9 This bill addresses requirements for providing certain financial services.
10Highlighted Provisions:
11 This bill:
12 <defines terms;
13 <under certain circumstances, prohibits a financial institution from coordinating with
14another to deny a person a financial service;
15 <requires a financial institution to:
16 Cdisclose a subjective standard incorporated as part of a financial service to
17current and potential customers; and
18 Cobtain consent from a potential customer to incorporate the subjective standard
19as part of the financial service;
20 <allows a person to bring a civil action for injunctive relief or damages if a financial
21institution denies a financial service in coordination with another; and
22 <exempts certain violations of the provisions in this bill from damage and fine caps
23under the Utah Antitrust Act.
24Money Appropriated in this Bill:
25 None
26Other Special Clauses:
27 None
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28Utah Code Sections Affected:
29AMENDS:
30 76-10-3108, as last amended by Laws of Utah 2019, Chapter 348
31 76-10-3112, as last amended by Laws of Utah 2013, Chapter 285 and renumbered and
32amended by Laws of Utah 2013, Chapter 187
33ENACTS:
34 7-1-811, Utah Code Annotated 1953
35
36Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 7-1-811 is enacted to read:
38 7-1-811. Denial of financial services -- Disclosure and consent for use of subjective
39standards -- Civil action.
40 (1) As used in this section, "subjective standard" means a standard that is intended to
41penalize, inflict economic harm to, or change or limit the activities of another person who does
42not further the following interests:
43 (a) elimination, reduction, offset, or disclosure of greenhouse gas emissions;
44 (b) institution or assessment of a board of directors or employment, composition,
45compensation, or disclosure criteria that incorporates race, color, sex, religion, ancestry, or
46national origin;
47 (c) limitation on the activities or investments of a company for:
48 (i) failing or not committing to meet environmental standards or disclosures; or
49 (ii) facilitating or supporting the manufacture, importation, distribution, marketing,
50advertisement, sale, or lawful use of a firearm, ammunition, or a component or accessory of a
51firearm or ammunition; or
52 (d) access to abortion or sex characteristic surgical procedures.
53 (2) A financial institution may not, based on a subjective standard, deny, in
54coordination with another person, a financial product or service that the financial institution
55offers.
56 (3) (a) A financial institution may not offer a potential customer a financial product or
57service that incorporates a subjective standard unless, before providing the financial product or
58service to the potential customer, the financial institution: 02-13-23 9:49 AM H.B. 449
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59 (i) provides the potential customer a written explanation of:
60 (A) the subjective standard; and
61 (B) the process to opt-out of the financial product or service; and
62 (ii) obtains the potential customer's written consent to incorporate the subjective
63standard as part of the financial product or service.
64 (b) A financial institution shall, upon request, provide a customer a written explanation
65of:
66 (i) any subjective standards incorporated as part of a financial product or service the
67financial institution provides the customer; and
68 (ii) the process to opt-out of the financial product or service.
69 (4) (a) A person may bring an action to:
70 (i) enjoin a continuance of an act in violation of Subsection (2); or
71 (ii) recover damages for an injury caused by a violation of Subsection (2).
72 (b) The plaintiff in an action for a violation of Subsection (2) is entitled to recover, in
73addition to injunctive relief, the amount of actual damages or $10,000, whichever is greater.
74 (5) This section does not prohibit a person from seeking a remedy available to the
75person independent of this section, including a remedy under this title, Title 61, Chapter 1,
76Utah Uniform Securities Act, or Title 76, Chapter 10, Part 31, Utah Antitrust Act.
77 Section 2. Section 76-10-3108 is amended to read:
78 76-10-3108. Attorney general may bring action for injunctive relief, damages,
79and civil penalty.
80 (1) (a) The attorney general may bring an action for appropriate injunctive relief, a civil
81penalty, and damages in the name of the state, any of [its] the state's political subdivisions or
82agencies, or as parens patriae on behalf of natural persons in this state, for a violation of this
83act. [Actions]
84 (b) An action may be brought under this section regardless of whether the plaintiff
85dealt directly or indirectly with the defendant. [This]
86 (c) The remedy under this subsection is an additional remedy to any other remedies
87provided by law[. It] and may not diminish or offset any other remedy.
88 (2) [Any]
89 (a) (i) Except as provided in Subsection (2)(b), an individual who violates this act is H.B. 449 02-13-23 9:49 AM
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90subject to a civil penalty of not more than $100,000 for each violation. [Any]
91 (ii) A person, other than an individual, who violates this act is subject to a civil penalty
92of not more than $500,000 for each violation.
93 (b) The damage caps described in Subsection (2)(a) do not apply to a person whose
94violation of this act is a violation of Subsection 7-1-811(2).
95 Section 3. Section 76-10-3112 is amended to read:
96 76-10-3112. Fine for violation -- Certain vertical agreements excluded -- Nolo
97contendere.
98 (1) (a) [Any] A person who violates Section 76-10-3104 by price fixing, bid rigging,
99agreeing among competitors to divide customers or territories, or by engaging in a group
100boycott with specific intent of eliminating competition is guilty of a third degree felony and,
101notwithstanding Sections 76-3-301 and 76-3-302, is subject to:
102 (i) if an individual, a fine not to exceed $100,000; or
103 (ii) if by a person other than an individual, a fine not to exceed $500,000.
104 (b) Subsection (1)(a) [may not be construed to] does not include vertical agreements
105between a manufacturer, its distributors, or their subdistributors dividing customers and
106territories solely involving the manufacturer's commodity or service where the manufacturer
107distributes its commodity or service both directly and through distributors or subdistributors in
108competition with itself.
109 (c) The fine caps described in Subsection (1)(a) do not apply to a person whose
110violation of this act is a violation of Subsection 7-1-811(2).
111 (2) (a) A defendant may plead nolo contendere to a charge brought under this title but
112only with the consent of the court.
113 (b) The court may accept the defendant's plea only after due consideration of the views
114of the parties and the interest of the public in the effective administration of justice.