DAR File No. 28178

Commerce, Consumer Protection

R152-30

Utah Personal Introduction Services Protection Act

NOTICE OF PROPOSED RULE

DAR File No.: 28178
Filed: 08/29/2005, 03:20
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

In 2005, through H.B. 164, the Utah Legislature repealed the Utah Personal Introduction Services Protection Act. (DAR NOTE: H.B. 164 (2005) is found at UT L 2005 Ch 70, and was effective 05/02/2005.)

Summary of the rule or change:

This rule change repeals the rule previously enacted by the Division of Consumer Protection in connection with the Utah Personal Introduction Services Protection Act. The rule is repealed in its entirety.

State statutory or constitutional authorization for this rule:

Title 13, Chapter 30

Anticipated cost or savings to:

the state budget:

Utah will no longer receive registration fees from personal introduction services, but this change was mandated by H.B. 164 (2005).

local governments:

None--Local governments were not involved in the administration or enforcement of the statute or rules, and should not be affected by the repeal.

other persons:

Personal introduction services no longer will be required to pay registration fees, or to post a bond.

Compliance costs for affected persons:

Personal introduction services no longer will be required to pay registration fees, or to post a bond.

Comments by the department head on the fiscal impact the rule may have on businesses:

The Utah Legislature repealed the Utah Personal Introduction Services Protection Act, eliminating registration and bond requirements for affected businesses. Francine Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Thad LeVar at the above address, by phone at 801-530-6929, by FAX at 801-530-6001, or by Internet E-mail at tlevar@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/17/2005

This rule may become effective on:

10/18/2005

Authorized by:

Francine Giani, Director

RULE TEXT

R152. Commerce, Consumer Protection.

[R152-30. Utah Personal Introduction Services Protection Act.

R152-30-1. Authority.

These rules are promulgated under Section 13-2-5(1) to facilitate the orderly administration of the Utah Personal Introduction Services Protection Act (hereafter, "the Act"), Title 13, Chapter 30.

R152-30-2. Definitions--Clarifications.

(1) The definitions set forth in Section 13-30-102 are incorporated herein.

(2) In addition the following clarification of definition as regards the administration of R152-30 and Chapter 30 of Title 13 is deemed necessary by the division.

(a) As set forth in Section 13-30-102(5), the term "compensation" for the purposes of determining the appropriate monetary amount of the bond, certificate of deposit, or letter of credit to be posted in accordance with Section 13-30-106 means the charge of or receipt of any money or other valuable consideration prior to full and complete performance of the services the personal introduction service has agreed to perform for the buyer for contracts having an unexpired term exceeding 90 days, as more specifically set forth in R152-30-3.

R152-30-3. Bond, Certificate of Deposit, or Letter of Credit-- Sliding Scale--Posting--Recovery Against.

(1) The minimum principal amount of the bond, certificate of deposit, or letter of credit required under Section 13-30-106(2) shall, if compensation is received prior to complete performance of the services contracted for, be based on the number of unexpired contracts in excess of 90 days for personal introduction services to which the personal introduction services is a party, in accordance with the following schedule:

TABLE

     Principal Amount of       Number of Contracts

     Bond, Certificate of      with an Unexpired Term

     Deposit, or Letter        Exceeding 90 Days

     of Credit



     $ 50,000                     500 or fewer

       75,000                     501 to 1,500

      100,000                   1,501 or more

(2) Any person who is injured through the violation of the Act by a personal introduction service is entitled to recover the value of such losses from the personal introduction service's posted bond, certificate of deposit, or letter of credit.

(3) The division also may recover from the bond, certificate of deposit, or letter of credit of a personal introduction service the amount of any administrative fine it imposes, or the amount of any civil judgments it obtains, against the personal introduction service arising from a violation of the Act.

(4) payment is immediately due and owing to the division when:

(a) the director delivers a signed writing to the personal introduction service and the personal introduction service's surety or issuing institution demanding payment of a specified sum of money; and

(b) the personal introduction service's liability in the amount specified by the director is demonstrated by a certified copy of the division's final order or the civil judgment of any Utah or federal court, which copy shall be attached to the director's demand for payment.

(5) The division may make a demand on a bond, certificate of deposit, or letter of credit either in its own right or as the representative of consumers who have been injured by the personal introduction service's violation of the Act.

(6) Bonds, certificates of deposit, or letters of credit submitted may be executed in any form that the director deems commercially and legally reasonable and consistent with this rule. The division's acceptance of a non-conforming instrument does not result in a waiver of the requirements of this rule.

R152-30-4. Grounds for Denial, Suspension, or Revocation-- Procedure.

(1) The director may, in accordance with Title 63, Chapter 46b, Administrative Procedures Act, issue an order to deny an initial or renewal application for registration as per Section 13-30-112, and suspend or revoke a registration at anytime, if the necessity of such denial, suspension or revocation in the director's opinion is based on facts known by the division or presented to the division showing that an immediate and significant danger to the public health, safety or welfare exists, and if such threat requires immediate action by the director that such denial, suspension or revocation may issue forthwith as an emergency order, subject to the division's compliance with Section 63-46b-20.

KEY: consumer protection, personal services

December 30, 1998

Notice of Continuation December 16, 2003

13-2-5

13-30-101]

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Thad LeVar at the above address, by phone at 801-530-6929, by FAX at 801-530-6001, or by Internet E-mail at tlevar@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.