Utah Code Ann. § 13-26-3
§ 13-26-3. Registration and bond required
(1)
(a)
Unless exempt under Section 13-26-4, each telephone soliciting business shall register annually with
the Division before engaging in telephone solicitations if:
(i)
the telephone soliciting business engages in telephone solicitation that: (A) originate in Utah; or
(B) are received in Utah; or
(ii)
the telephone soliciting business conducts any business operations in Utah.
(b)
The registration form shall designate an agent residing in this state who is authorized by the
telephone soliciting business to receive service of process in any action brought by this state or a resident
of this state.
(c)
If a telephone soliciting business fails to designate an agent to receive service or fails to appoint a
successor to the agent: (i) the business' application for an initial or renewal registration shall be denied;
and (ii) any current registration shall be suspended until an agent is designated.
(2)
The division may impose an annual registration fee set pursuant to Section 63-38-3.2.
(3)
(a)
Each telephone soliciting business engaging in telephone solicitation or sales in this state shall
obtain and maintain the following security:
(i)
a performance bond issued by a surety authorized to transact surety business in this state;
(ii)
an irrevocable letter of credit issued by a financial institution authorized to do business in this
state; or
(iii)
a certificate of deposit held in this state in a depository institution regulated by the
Department of Financial Institutions.
(b)
The bond, letter of credit, or certificate of deposit shall be payable to the division for the benefit
of any consumer who incurs damages as the result of any telephone solicitation or sales violation of this
chapter.
(c)
The division may recover from the bond, letter of credit, or certificate of deposit investigative
costs, attorneys' fees, and other costs of collecting and distributing funds under this section and the costs
of promoting consumer education, but only if the consumer has first recovered full damages.
(d)
A telephone soliciting business shall keep a bond, certificate of deposit, or letter of credit in force
for one year after it notifies the division in writing that it has ceased all activities regulated by this
chapter.
(e)
The amount to be posted in the form of a bond, irrevocable letter of credit, or certificate of deposit
shall be:
(i)
$ 25,000 if: (A) neither the telephone soliciting business nor any affiliated person has violated
this chapter within three years preceding the date of the application; and (B) the telephone soliciting
business has fewer than ten employees;
(ii)
$ 50,000 if: (A) neither the telephone soliciting business nor any affiliated person has violated
this chapter within three years preceding the date of the application; and (B) the telephone soliciting
business has ten or more employees; or
(iii)
$ 75,000 if the telephone soliciting business or any affiliated person has violated this chapter
within three years preceding the date of the application.
(f)
For purposes of Subsection (3)(e) an "affiliated person" means a contractor, director, employee,
officer, owner, or partner of the telephone soliciting business.
(4)
The division may establish by rule the registration requirements for telephone soliciting businesses under
the terms of Title 63, Chapter 46a, Utah Administrative Rulemaking Act. An administrative proceeding conducted
by the division under this chapter shall comply with the requirements of Title 63, Chapter 46b, Administrative
Procedures Act.
(5)
The division director may revoke a registration under this section for any violation of this chapter.
