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H.B. 317

             1     

ADMINISTRATIVE RULE CRIMINAL

             2     
PENALTY AMENDMENTS

             3     
2006 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: David Ure

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies certain statutes granting authority to assess criminal penalties.
             11      Highlighted Provisions:
             12          This bill:
             13          .    repeals the authority in certain statutes to specify by administrative rule what
             14      conduct constitutes a misdemeanor or a felony in these areas:
             15              .    Agriculture, Community and Culture, Alcoholic Beverage Control, Mines and
             16      Mining, Motor Vehicles, Public Funds and Accounts, Public Safety, Revenue
             17      and Taxation, State Lands, and the Utah Criminal Code.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          4-38-7, as last amended by Chapter 64, Laws of Utah 1993
             25          9-4-612, as last amended by Chapter 28, Laws of Utah 2000
             26          32A-12-104, as renumbered and amended by Chapter 23, Laws of Utah 1990
             27          40-6-12, as last amended by Chapter 241, Laws of Utah 1991


             28          40-8-9, as last amended by Chapter 194, Laws of Utah 2002
             29          41-3-210, as last amended by Chapter 249, Laws of Utah 2000
             30          41-3-701, as last amended by Chapters 165 and 221, Laws of Utah 1993
             31          41-3-702, as last amended by Chapter 334, Laws of Utah 2003
             32          41-6a-1115, as renumbered and amended by Chapter 2 and last amended by Chapter
             33      111, Laws of Utah 2005
             34          51-7-22.4, as last amended by Chapter 183, Laws of Utah 2005
             35          53-7-226, as renumbered and amended by Chapter 234, Laws of Utah 1993
             36          59-14-212, as last amended by Chapter 270, Laws of Utah 2001
             37          65A-3-1, as last amended by Chapter 267, Laws of Utah 1995
             38          76-10-1233 (Effective 05/01/06), as enacted by Chapter 281, Laws of Utah 2005
             39      ENACTS:
             40          76-10-1234, Utah Code Annotated 1953
             41     
             42      Be it enacted by the Legislature of the state of Utah:
             43          Section 1. Section 4-38-7 is amended to read:
             44           4-38-7. Licenses -- Fees -- Duties of licensees.
             45          (1) The commission may grant licenses for participation in racing and other activities
             46      associated with racetracks.
             47          (2) The commission shall establish a schedule of fees for the application for and
             48      renewal and reinstatement of all licenses issued under this chapter.
             49          (3) Each person holding a license under this chapter shall comply with this chapter and
             50      with all rules promulgated and all orders issued by the commission under this chapter.
             51          (4) Any person who holds a recognized race meet or who participates directly or
             52      indirectly in a recognized race meet without being first licensed by the commission as required
             53      under this chapter [or by the rules of the commission] and any person violating any of the
             54      provisions of this chapter is [guilty of a class A misdemeanor] liable for a civil or criminal
             55      penalty under Section 4-2-15 .
             56          Section 2. Section 9-4-612 is amended to read:
             57           9-4-612. Penalties for fraudulently obtaining or continuing to receive housing
             58      assistance benefits.


             59          (1) No person may knowingly, by misrepresentation, impersonation, or any other
             60      fraudulent means, make any false statement to housing authority personnel or, after being
             61      accepted as a recipient of housing authority benefits, fail to disclose to housing authority
             62      personnel any:
             63          (a) change in household composition;
             64          (b) employment change;
             65          (c) change in marital status;
             66          (d) receipt of any other monetary assistance;
             67          (e) receipt of in-kind gifts; or
             68          (f) any other material fact or change in circumstances which would affect the
             69      determination of that person's eligibility to receive housing assistance benefits, or would affect
             70      the amount of benefits for which he is eligible.
             71          (2) No person may fail to disclose any of the information described in Subsection (1)
             72      for the purpose of obtaining or continuing to receive funds or other housing assistance benefits
             73      to which he is not entitled, or in an amount larger than that to which he is entitled.
             74          (3) No person who has duties relating to the administration of any housing authority
             75      program may fraudulently misappropriate any funds or other assistance with which he has been
             76      entrusted, or of which he has gained possession by virtue of his position.
             77          (4) No person may knowingly:
             78          (a) file or falsify any claim, report, or document required by state or federal law[, rule],
             79      or provider agreement, to obtain or attempt to obtain unauthorized housing assistance benefits
             80      under this chapter; or
             81          (b) attempt to commit, or aid or abet the commission of, any act prohibited by this
             82      section.
             83          (5) The punishment for violation of any provision of this section by a housing
             84      assistance recipient is determined by the cumulative value of the funds or other benefits he
             85      received from all the frauds he committed, and not by each separate instance of fraud.
             86          (6) The punishment for the offenses of this section are:
             87          (a) a felony of the second degree if the value of the funds or other benefits received,
             88      misappropriated, claimed, or applied for, is equal to or exceeds $5,000;
             89          (b) a felony of the third degree if the value of the funds or other benefits received,


             90      misappropriated, claimed, or applied for, is equal to or greater than $1,000 but less than
             91      $5,000;
             92          (c) a class A misdemeanor if the value of the funds or other benefits received,
             93      misappropriated, claimed, or applied for, is equal to or greater than $300 but less than $1,000;
             94      or
             95          (d) a class B misdemeanor if the value of the funds or other benefits received,
             96      misappropriated, claimed, or applied for, is less than $300.
             97          Section 3. Section 32A-12-104 is amended to read:
             98           32A-12-104. Violation of title a misdemeanor.
             99          Any person who violates this title [or the commission rules adopted under this title] is
             100      guilty of a class B misdemeanor, unless otherwise provided in this title.
             101          Section 4. Section 40-6-12 is amended to read:
             102           40-6-12. Evasion of chapter or rules -- Penalties -- Limitation of actions.
             103          (1) (a) A person is guilty of a class A misdemeanor if, for the purpose of evading this
             104      chapter or any [rule or] order of the board, he is convicted of any of the following:
             105          (i) making or causing to be made any false entry in any report, record, account, or
             106      memorandum required by this chapter or by any rule or order;
             107          (ii) omitting or causing to be omitted from any report, record, account, or
             108      memorandum, full, true, and correct entries as required by this chapter or by any [rule or]
             109      order; or
             110          (iii) removing from this state or destroying, mutilating, altering, or falsifying any
             111      record, account, or memorandum.
             112          (b) Upon conviction, that person is subject to a fine of not more than $5,000 or
             113      imprisonment for a term not exceeding six months, or to both fine and imprisonment.
             114          (2) No suit, action, or other proceeding based upon a violation of this chapter or any
             115      rule or order of the board may be commenced or maintained unless it is commenced within one
             116      year from the date of the alleged violation.
             117          Section 5. Section 40-8-9 is amended to read:
             118           40-8-9. Evasion of chapter or rules -- Penalties -- Limitations of actions --
             119      Violation of chapter or permit conditions -- Inspection -- Cessation order, abatement
             120      notice, or show cause order -- Suspension or revocation of permit -- Review -- Division


             121      enforcement authority -- Appeal provisions.
             122          (1) (a) A person, owner, or operator who willfully or knowingly evades this chapter, or
             123      who for the purpose of evading this chapter or any [rule or] order issued under this chapter,
             124      willfully or knowingly makes or causes to be made any false entry in any report, record,
             125      account, or memorandum required by this chapter, or by the [rule or] order, or who willfully or
             126      knowingly omits or causes to be omitted from a report, record, account, or memorandum, full,
             127      true, and correct entries as required by this chapter, or by the [rule or] order, or who willfully or
             128      knowingly removes from this state or destroys, mutilates, alters, or falsifies any record,
             129      account, or memorandum, is guilty of a misdemeanor and, upon conviction, is subject to a fine
             130      of not more than $10,000 for each violation.
             131          (b) Each day of willful failure to comply with an emergency order is a separate
             132      violation.
             133          (2) No suit, action, or other proceeding based upon a violation of this chapter, or any
             134      rule or order issued under this chapter, may be commenced or maintained unless the suit,
             135      action, or proceeding is commenced within five years from the date of the alleged violation.
             136          (3) (a) If, on the basis of information available, the division has reason to believe that a
             137      person is in violation of a requirement of this chapter or a permit condition required by this
             138      chapter, the division shall immediately order inspection of the mining operation at which the
             139      alleged violation is occurring, unless the information available to the division is a result of a
             140      previous inspection of the mining operation.
             141          (b) (i) If, on the basis of an inspection, the division determines that a condition or
             142      practice exists, or that a permittee is in violation of a requirement of this chapter or a permit
             143      condition required by this chapter, and the condition, practice, or violation also creates an
             144      imminent danger to the health or safety of the public, or is causing, or can reasonably be
             145      expected to cause significant, imminent environmental harm to land, air, or water resources,
             146      the division shall immediately order a cessation of mining and operations or the portion
             147      relevant to the condition, practice, or violation.
             148          (ii) The cessation order shall remain in effect until the division determines that the
             149      condition, practice, or violation has been abated, or until modified, vacated, or terminated by
             150      the division.
             151          (iii) If the division finds that the ordered cessation of mining operations, or a portion of


             152      the operation, will not completely abate the imminent danger to the health or safety of the
             153      public or the significant imminent environmental harm to land, air, or water resources, the
             154      division shall, in addition to the cessation order, impose affirmative obligations on the operator
             155      requiring him to take whatever steps the division considers necessary to abate the imminent
             156      danger or the significant environmental harm.
             157          (c) (i) If, on the basis of an inspection, the division determines that a permittee is in
             158      violation of a requirement of this chapter or a permit condition required by this chapter, but the
             159      violation does not create an imminent danger to the health or safety of the public or cannot be
             160      reasonably expected to cause significant, imminent environmental harm to land, air, or water
             161      resources, the division shall issue a notice to the permittee or his agent specifying a reasonable
             162      time, but not more than 90 days, for the abatement of the violation and providing an
             163      opportunity for a conference with the division.
             164          (ii) If, upon expiration of the period of time as originally fixed or subsequently
             165      extended, for good cause shown, and upon the written finding of the division, the division finds
             166      that the violation has not been abated, it shall immediately order a cessation of mining
             167      operations or the portion of the mining operation relevant to the violation.
             168          (iii) The cessation order shall remain in effect until the division determines that the
             169      violation has been abated or until modified, vacated, or terminated by the division pursuant to
             170      this Subsection (3).
             171          (iv) In the order of cessation issued by the division under this Subsection (3), the
             172      division shall determine the steps necessary to abate the violation in the most expeditious
             173      manner possible and shall include the necessary measures in the order.
             174          (d) (i) Notices and orders issued under this section shall set forth with reasonable
             175      specificity:
             176          (A) the nature of the violation and the remedial action required;
             177          (B) the period of time established for abatement; and
             178          (C) a reasonable description of the portion of the mining and reclamation operation to
             179      which the notice or order applies.
             180          (ii) Each notice or order issued under this section shall be given promptly to the
             181      permittee or his agent by the division, and the notices and orders shall be in writing and shall
             182      be signed by the director, or his authorized representative who issues notices or orders.


             183          (iii) A notice or order issued under this section may be modified, vacated, or
             184      terminated by the division, but any notice or order issued under this section which requires
             185      cessation of mining by the operator shall expire within 30 days of the actual notice to the
             186      operator, unless a conference is held with the division.
             187          (4) (a) The division may request the attorney general to institute a civil action for relief,
             188      including a permanent or temporary injunction, restraining order, or any other appropriate order
             189      in the district court for the district in which the mining and reclamation operation is located, or
             190      in which the permittee of the operation has his principal office, if the permittee or his agent:
             191          (i) violates or fails or refuses to comply with an order or decision issued by the division
             192      under this chapter;
             193          (ii) interferes with, hinders, or delays the division, or its authorized representatives, in
             194      carrying out the provisions of this chapter;
             195          (iii) refuses to admit the authorized representatives to the mine;
             196          (iv) refuses to permit inspection of the mine by the authorized representative; or
             197          (v) refuses to furnish any information or report requested by the division in furtherance
             198      of the provisions of this chapter.
             199          (b) (i) The court shall have jurisdiction to provide the appropriate relief.
             200          (ii) Relief granted by the court to enforce an order under Subsection (4)(a)(i) shall
             201      continue in effect until the completion or final termination of all proceedings for review of that
             202      order under this chapter, unless, prior to this completion or termination, the district court
             203      granting the relief sets it aside or modifies the order.
             204          (5) (a) (i) A permittee issued a notice or order by the division, pursuant to the
             205      provisions of Subsections (3)(b) and (3)(c), or a person having an interest which may be
             206      adversely affected by the notice or order, may apply to the board for review of the notice or
             207      order within 30 days of receipt of the notice or order, or within 30 days of a modification,
             208      vacation, or termination of the notice or order.
             209          (ii) Upon receipt of this application, the board shall pursue an investigation as it
             210      considers appropriate.
             211          (iii) The investigation shall provide an opportunity for a public hearing at the request of
             212      the applicant or the person having an interest which is or may be adversely affected, to enable
             213      the applicant or that person to present information relating to the issuance and continuance of


             214      the notice or order of the modification, vacation, or termination of the notice or order.
             215          (iv) The filing of an application for review under this Subsection (5)(a) shall not
             216      operate as a stay of an order or notice.
             217          (b) (i) The permittee and other interested persons shall be given written notice of the
             218      time and place of the hearing at least five days prior to the hearing.
             219          (ii) This hearing shall be of record and shall be subject to judicial review.
             220          (c) (i) Pending completion of the investigation and hearing required by this section, the
             221      applicant may file with the board a written request that the board grant temporary relief from
             222      any notice or order issued under this section, with a detailed statement giving the reasons for
             223      granting this relief.
             224          (ii) The board shall issue an order or decision granting or denying this relief
             225      expeditiously.
             226          (d) (i) Following the issuance of an order to show cause as to why a permit should not
             227      be suspended or revoked pursuant to this section, the board shall hold a public hearing, after
             228      giving written notice of the time, place, and date of the hearing.
             229          (ii) The hearing shall be of record and shall be subject to judicial review.
             230          (iii) Within 60 days following the public hearing, the board shall issue and furnish to
             231      the permittee and all other parties to the hearing, a written decision, and the reasons for the
             232      decision, regarding suspension or revocation of the permit.
             233          (iv) If the board revokes the permit, the permittee shall immediately cease mining
             234      operations on the permit area and shall complete reclamation within a period specified by the
             235      board, or the board shall declare the performance bonds forfeited for the operation.
             236          (e) Action by the board taken under this section or any other provision of the state
             237      program shall be subject to judicial review by the appropriate district court within the state.
             238          (6) A criminal proceeding for a violation of this chapter, or a rule, regulation, or order
             239      issued under this chapter, shall be commenced within five years from the date of the alleged
             240      violation.
             241          Section 6. Section 41-3-210 is amended to read:
             242           41-3-210. License holders -- Prohibitions.
             243          (1) The holder of any license issued under this chapter may not:
             244          (a) intentionally publish, display, or circulate any advertising that is misleading or


             245      inaccurate in any material fact or that misrepresents any of the products sold, manufactured,
             246      remanufactured, handled, or furnished by a licensee;
             247          (b) intentionally publish, display, or circulate any advertising without identifying the
             248      seller as the licensee by including in the advertisement the full name under which the licensee
             249      is licensed or the licensee's number assigned by the division;
             250          (c) violate this chapter or the rules made by the administrator;
             251          (d) violate any law of the state respecting commerce in motor vehicles or any rule
             252      respecting commerce in motor vehicles made by any licensing or regulating authority of the
             253      state;
             254          (e) engage in business as a new motor vehicle dealer, special equipment dealer, used
             255      motor vehicle dealer, motor vehicle crusher, or body shop without having in effect a bond as
             256      required in this chapter;
             257          (f) act as a dealer, dismantler, crusher, manufacturer, transporter, remanufacturer, or
             258      body shop without maintaining a principal place of business;
             259          (g) engage in a business respecting the selling or exchanging of new or new and used
             260      motor vehicles for which he is not licensed, including selling or exchanging a new motor
             261      vehicle for which the licensee does not have a franchise, but this Subsection (1)(g) does not
             262      apply to a special equipment dealer who sells a new special equipment motor vehicle with a
             263      gross vehicle weight of 12,000 or more pounds after installing special equipment on the motor
             264      vehicle;
             265          (h) dismantle or transport to a crusher for crushing or other disposition any motor
             266      vehicle without first obtaining a dismantling or junk permit under Section 41-1a-1009 ,
             267      41-1a-1010 , or 41-1a-1011 ;
             268          (i) as a new motor vehicle dealer, special equipment dealer, or used motor vehicle
             269      dealer fail to give notice of sales or transfers as required in Section 41-3-301 ;
             270          (j) advertise or otherwise represent, or knowingly allow to be advertised or represented
             271      on his behalf or at his place of business, that no down payment is required in connection with
             272      the sale of a motor vehicle when a down payment is required and the buyer is advised or
             273      induced to finance a down payment by a loan in addition to any other loan financing the
             274      remainder of the purchase price of the motor vehicle;
             275          (k) as a crusher, crush or shred a motor vehicle brought to the crusher without


             276      obtaining proper evidence of ownership of the motor vehicle; proper evidence of ownership is
             277      a certificate of title endorsed according to law or a dismantling or junk permit issued under
             278      Section 41-1a-1009 , 41-1a-1010 , or 41-1a-1011 ;
             279          (l) as a manufacturer or remanufacturer assemble a motor vehicle that does not comply
             280      with construction, safety, or vehicle identification number standards fixed by law or rule of any
             281      licensing or regulating authority;
             282          (m) as anyone other than a salesperson licensed under this chapter, be present on a
             283      dealer display space and contact prospective customers to promote the sale of the dealer's
             284      vehicles;
             285          (n) sell, display for sale, or offer for sale motor vehicles at any location other than the
             286      principal place of business or additional places of business licensed under this chapter; this
             287      provision is construed to prevent dealers, salespersons, or any other representative of a
             288      dealership from selling, displaying, or offering motor vehicles for sale from their homes or
             289      other unlicensed locations;
             290          (o) (i) as a dealer, dismantler, body shop, or manufacturer, maintain a principal place of
             291      business or additional place of business that shares any common area with a business or
             292      activity not directly related to motor vehicle commerce; or
             293          (ii) maintain any places of business that share any common area with another dealer,
             294      dismantler, body shop, or manufacturer;
             295          (p) withhold delivery of license plates obtained by the licensee on behalf of a customer
             296      for any reason, including nonpayment of any portion of the vehicle purchase price or down
             297      payment;
             298          (q) issue a temporary permit for any vehicle that has not been sold by the licensee;
             299          (r) alter a temporary permit in any manner;
             300          (s) operate any principal place of business or additional place of business in a location
             301      that does not comply with local ordinances, including zoning ordinances; [or]
             302          (t) sell, display for sale, offer for sale, or exchange any new motor vehicle if the
             303      licensee does not:
             304          (i) have a new motor vehicle dealer's license under Section 41-3-202 ; and
             305          (ii) possess a franchise from the manufacturer of the new motor vehicle sold, displayed
             306      for sale, offered for sale, or exchanged by the licensee[.]; or


             307          (u) as a new motor vehicle dealer or used motor vehicle dealer, encourage or conspire
             308      with any person who has not obtained a salesperson's license to solicit for prospective
             309      purchasers.
             310          (2) (a) If a new motor vehicle is constructed in more than one stage, such as a motor
             311      home, ambulance, or van conversion, the licensee shall advertise, represent, sell, and exchange
             312      the vehicle as the make designated by the final stage manufacturer, except in those specific
             313      situations where the licensee possesses a franchise from the initial or first stage manufacturer,
             314      presumably the manufacturer of the motor vehicle's chassis.
             315          (b) Sales of multiple stage manufactured motor vehicles shall include the transfer to the
             316      purchaser of a valid manufacturer's statement or certificate of origin from each manufacturer
             317      under Section 41-3-301 .
             318          (3) Each licensee, except salespersons, shall maintain and make available for
             319      inspection by peace officers and employees of the division:
             320          (a) a record of every motor vehicle bought, or exchanged by the licensee or received or
             321      accepted by the licensee for sale or exchange;
             322          (b) a record of every used part or used accessory bought or otherwise acquired;
             323          (c) a record of every motor vehicle bought or otherwise acquired and wrecked or
             324      dismantled by the licensee;
             325          (d) all buyers' orders, contracts, odometer statements, temporary permit records,
             326      financing records, and all other documents related to the purchase, sale, or consignment of
             327      motor vehicles; and
             328          (e) a record of the name and address of the person to whom any motor vehicle or motor
             329      vehicle body, chassis, or motor vehicle engine is sold or otherwise disposed of and a
             330      description of the motor vehicle by year, make, and vehicle identification number.
             331          (4) Each licensee required by this chapter to keep records shall:
             332          (a) be kept by the licensee at least for five years; and
             333          (b) furnish copies of those records upon request to any peace officer or employee of the
             334      division during reasonable business hours.
             335          (5) A manufacturer, distributor, distributor representative, or factory representative
             336      may not induce or attempt to induce by means of coercion, intimidation, or discrimination any
             337      dealer to:


             338          (a) accept delivery of any motor vehicle, parts, or accessories or any other commodity
             339      or commodities, including advertising material not ordered by the dealer;
             340          (b) order or accept delivery of any motor vehicle with special features, appliances,
             341      accessories, or equipment not included in the list price of the motor vehicle as publicly
             342      advertised by the manufacturer;
             343          (c) order from any person any parts, accessories, equipment, machinery, tools,
             344      appliances, or any other commodity;
             345          (d) enter into an agreement with the manufacturer, distributor, distributor
             346      representative, or factory representative of any of them, or to do any other act unfair to the
             347      dealer by threatening to cancel any franchise or contractual agreement between the
             348      manufacturer, distributor, distributor branch, or factory branch and the dealer;
             349          (e) refuse to deliver to any dealer having a franchise or contractual arrangement for the
             350      retail sale of new and unused motor vehicles sold or distributed by the manufacturer,
             351      distributor, distributor branch or factory branch, any motor vehicle, publicly advertised for
             352      immediate delivery within 60 days after the dealer's order is received; or
             353          (f) unfairly, without regard to the equities of the dealer, cancel the franchise of any
             354      motor vehicle dealer; the nonrenewal of a franchise or selling agreement without cause is a
             355      violation of this subsection and is an unfair cancellation.
             356          (6) A dealer may not assist an unlicensed dealer or salesperson in unlawful activity
             357      through active or passive participation in sales, or by allowing use of his facilities or dealer
             358      license number, or by any other means.
             359          (7) (a) The holder of any new motor vehicle dealer license issued under this chapter
             360      may not sell any new motor vehicle to:
             361          (i) another dealer licensed under this chapter who does not hold a valid franchise for
             362      the make of new motor vehicles sold, unless the selling dealer licenses and titles the new motor
             363      vehicle to the purchasing dealer; or
             364          (ii) any motor vehicle leasing or rental company located within this state, or who has
             365      any branch office within this state, unless the dealer licenses and titles the new motor vehicle to
             366      the purchasing, leasing, or rental company.
             367          (b) Subsection (7)(a)(i) does not apply to the sale of a new incomplete motor vehicle
             368      with a gross vehicle weight of 12,000 or more pounds to a special equipment dealer licensed


             369      under this chapter.
             370          (8) A dealer licensed under this chapter may not take on consignment any new motor
             371      vehicle from anyone other than a new motor vehicle dealer, factory, or distributor who is
             372      licensed and franchised to distribute or sell that make of motor vehicle in this or any other
             373      state.
             374          (9) A body shop licensed under this chapter may not assist an unlicensed body shop in
             375      unlawful activity through active or passive means or by allowing use of its facilities, name,
             376      body shop number, or by any other means.
             377          (10) A used motor vehicle dealer licensed under this chapter may not advertise, offer
             378      for sale, or sell a new motor vehicle that has been driven less than 7,500 miles by obtaining a
             379      title only to the vehicle and representing it as a used motor vehicle.
             380          (11) (a) Except as provided in Subsection (11)(c), or in cases of undue hardship or
             381      emergency as provided by rule by the division, a dealer or salesperson licensed under this
             382      chapter may not, on consecutive days of Saturday and Sunday, sell, offer for sale, lease, or offer
             383      for lease a motor vehicle.
             384          (b) Each day a motor vehicle is sold, offered for sale, leased, or offered for lease in
             385      violation of Subsection (11)(a) and each motor vehicle sold, offered for sale, leased, or offered
             386      for lease in violation of Subsection (11)(a) shall constitute a separate offense.
             387          (c) The provisions of Subsection (11)(a) shall not apply to a dealer participating in a
             388      trade show or exhibition if:
             389          (i) there are five or more dealers participating in the trade show or exhibition; and
             390          (ii) the trade show or exhibition takes place at a location other than the principal place
             391      of business of one of the dealers participating in the trade show or exhibition.
             392          (12) For purposes of imposing the sales and use tax under Title 59, Chapter 12, Sales
             393      and Use Tax Act, a licensee issuing a temporary permit under Section 41-3-302 shall separately
             394      identify the fees required by Title 41, Chapter 1a, Motor Vehicle Act.
             395          Section 7. Section 41-3-701 is amended to read:
             396           41-3-701. Violations as misdemeanors.
             397          (1) Except as otherwise provided in this chapter, any person who violates this chapter
             398      [or any rule made by the administrator] is guilty of a class B misdemeanor.
             399          (2) A person who violates Section 41-3-201 is guilty of a class A misdemeanor.


             400          (3) A person who violates Section 41-3-301 is guilty of a class A misdemeanor unless
             401      the selling dealer complies with the requirements of Section 41-3-403 .
             402          Section 8. Section 41-3-702 is amended to read:
             403           41-3-702. Civil penalty for violation.
             404          (1) The following are civil violations under this chapter and are in addition to criminal
             405      violations under this chapter:
             406          (a) Level I:
             407          (i) failure to display business license;
             408          (ii) failure to surrender license of salesperson because of termination, suspension, or
             409      revocation;
             410          (iii) failure to maintain a separation from nonrelated motor vehicle businesses at
             411      licensed locations;
             412          (iv) issuing a temporary permit improperly;
             413          (v) failure to maintain records;
             414          (vi) selling a new motor vehicle to a nonfranchised dealer or leasing company without
             415      licensing the motor vehicle;
             416          (vii) special plate violation; and
             417          (viii) failure to maintain a sign at principal place of business.
             418          (b) Level II:
             419          (i) failure to report sale;
             420          (ii) dismantling without a permit;
             421          (iii) manufacturing without meeting construction or vehicle identification number
             422      standards;
             423          (iv) withholding customer license plates; or
             424          (v) selling a motor vehicle on consecutive days of Saturday and Sunday.
             425          (c) Level III:
             426          (i) operating without a principal place of business;
             427          (ii) selling a new motor vehicle without holding the franchise;
             428          (iii) crushing a motor vehicle without proper evidence of ownership;
             429          (iv) selling from an unlicensed location;
             430          (v) altering a temporary permit;


             431          (vi) refusal to furnish copies of records;
             432          (vii) assisting an unlicensed dealer or salesperson in sales of motor vehicles; [and]
             433          (viii) advertising violation[.];
             434          (ix) failure to separately identify the fees required by Title 41, Chapter 1a, Motor
             435      Vehicle Act; and
             436          (x) encouraging or conspiring with unlicensed persons to solicit for prospective
             437      purchasers.
             438          (2) (a) The schedule of civil penalties for violations of Subsection (1) is:
             439          (i) Level I: $25 for the first offense, $100 for the second offense, and $250 for the third
             440      and subsequent offenses;
             441          (ii) Level II: $100 for the first offense, $250 for the second offense, and $1,000 for the
             442      third and subsequent offenses; and
             443          (iii) Level III: $250 for the first offense, $1,000 for the second offense, and $5,000 for
             444      the third and subsequent offenses.
             445          (b) When determining under this section if an offense is a second or subsequent
             446      offense, only prior offenses committed within the 12 months prior to the commission of the
             447      current offense may be considered.
             448          (3) The following are civil violations in addition to criminal violations under Section
             449      41-1a-1008 :
             450          (a) knowingly selling a salvage vehicle, as defined in Section 41-1a-1001 , without
             451      disclosing that the salvage vehicle has been repaired or rebuilt;
             452          (b) knowingly making a false statement on a vehicle damage disclosure statement, as
             453      defined in Section 41-1a-1001 ; or
             454          (c) fraudulently certifying that a damaged motor vehicle is entitled to an unbranded
             455      title, as defined in Section 41-1a-1001 , when it is not.
             456          (4) The civil penalty for a violation under Subsection (3) is:
             457          (a) not less than $1,000, or treble the actual damages caused by the person, whichever
             458      is greater; and
             459          (b) reasonable attorneys' fees and costs of the action.
             460          (5) A civil action may be maintained by a purchaser or by the administrator.
             461          Section 9. Section 41-6a-1115 is amended to read:


             462           41-6a-1115. Motor assisted scooters -- Conflicting provisions -- Restrictions --
             463      Penalties.
             464          (1) (a) Except as otherwise provided in this section, a motor assisted scooter is subject
             465      to the provisions under this chapter for a bicycle, moped, or a motor-driven cycle.
             466          (b) For a person operating a motor assisted scooter, the following provisions do not
             467      apply:
             468          (i) seating positions under Section 41-6a-1501 ;
             469          (ii) required lights, horns, and mirrors under Section 41-6a-1506 ;
             470          (iii) entitlement to full use of a lane under Subsection 41-6a-1502 (1); and
             471          (iv) driver licensing requirements under Section 53-3-202 .
             472          (2) A person under 15 years of age may not operate a motor assisted scooter using the
             473      motor unless the person is under the direct supervision of the person's parent or guardian.
             474          (3) A person under eight years of age may not operate a motor assisted scooter with the
             475      motor running on any public property, highway, path, or sidewalk.
             476          (4) A person may not operate a motor assisted scooter:
             477          (a) in a public parking structure;
             478          (b) on public property posted as an area prohibiting skateboards;
             479          (c) on a highway consisting of a total of four or more lanes designated for regular
             480      vehicular traffic;
             481          (d) on a highway with a posted speed limit greater than 25 miles per hour;
             482          (e) while carrying more persons at one time than the number for which it is designed;
             483      or
             484          (f) that has been structurally or mechanically altered from the original manufacturer's
             485      design.
             486          (5) Except where posted or prohibited by [rule or] local ordinance, a motor assisted
             487      scooter is considered a nonmotorized vehicle if it is being used with the motor turned off.
             488          (6) An owner may not authorize or knowingly permit a person to operate a motor
             489      assisted scooter in violation of this section.
             490          (7) A person who violates this section is guilty of a class C misdemeanor.
             491          Section 10. Section 51-7-22.4 is amended to read:
             492           51-7-22.4. Penalties for violation by certified investment advisers.


             493          (1) [Each] An intentional violation by a certified investment adviser [who intentionally
             494      violates] of Section 51-7-7 , 51-7-11 , or 51-7-11.5 , or [who intentionally violates] any rule or
             495      order under this chapter is [guilty of a third degree felony.] punishable by a civil penalty of:
             496          (a) $1,000 for each day of noncompliance for the responsible person; and
             497          (b) $5,000 for each day of noncompliance for the firm or institution.
             498          (2) In addition to any other penalty for a criminal violation of this chapter, the
             499      sentencing judge may impose any penalty or remedy provided for in Subsection
             500      51-7-22.5 (1)(b).
             501          Section 11. Section 53-7-226 is amended to read:
             502           53-7-226. Violations -- Misdemeanor.
             503          A person is guilty of a class B misdemeanor if he:
             504          (1) violates this part;
             505          (2) violates any order made under this part;
             506          (3) produces, reproduces, or uses the official seal of registration of the division in any
             507      manner or for any purpose inconsistent with the [rules of the board] designated purpose of the
             508      seal;
             509          (4) removes, uses, or damages service tags or other labels or markings [required by the
             510      board] in a manner inconsistent with the [rules of the board] designated use of the service tag;
             511          (5) engages in the sale, storage, or handling of class C fireworks without a permit
             512      where a local government requires a permit;
             513          (6) sells at retail, transports, possesses, or discharges [fireworks that are not approved
             514      under rules made by the board] class C dangerous explosives as defined in Section 53-7-202 ;
             515          (7) performs or intends to perform services or induces the public to enter into any
             516      obligation relating to the performance of those services that are untrue, misleading, or
             517      reasonably known to be untrue or misleading; or
             518          (8) builds in violation of the division's plan review or written instructions conducted on
             519      building specifications, building plans, or amendments of those specifications or plans as
             520      required under this part.
             521          Section 12. Section 59-14-212 is amended to read:
             522           59-14-212. Reporting of imported cigarettes -- Penalty.
             523          (1) Except as provided under Subsection (2), any manufacturer, distributor, wholesaler,


             524      or retail dealer who under Section 59-14-205 affixes a stamp to an individual package or
             525      container of cigarettes imported to the United States shall provide to the commission the
             526      following as they pertain to the imported cigarettes:
             527          (a) a copy of the importer's federal import permit;
             528          (b) the customs form showing the tax information required by federal law;
             529          (c) a statement signed under penalty of perjury by the manufacturer or importer that the
             530      manufacturer or importer has complied with:
             531          (i) 15 U.S.C. 1333 of the Federal Cigarette Labeling and Advertising Act, regarding
             532      warning labels and other package information; and
             533          (ii) 15 U.S.C. 1335a of the Federal Cigarette Labeling and Advertising Act, regarding
             534      reporting of added ingredients;
             535          (d) the name of the person from whom the person affixing the stamp received the
             536      cigarettes;
             537          (e) the name of the person to whom the person affixing the stamp delivered the
             538      cigarettes, unless the person receiving the cigarettes was the ultimate consumer;
             539          (f) the quantity of cigarettes in the package or container; and
             540          (g) the brand and brand style of the cigarettes.
             541          (2) Subsection (1) does not apply to cigarettes sold or intended to be sold as duty-free
             542      merchandise by a duty-free sales enterprise in accordance with the provisions of 19 U.S.C.
             543      1555(b) and any implementing regulations unless the cigarettes are brought back into the
             544      customs territory for resale within the customs territory.
             545          (3) The information under Subsection (1) shall be provided on a quarterly basis
             546      [pursuant to rules established by the commission in accordance with Title 63, Chapter 46a,
             547      Utah Administrative Rulemaking Act] on forms specified by the agency.
             548          (4) A person who fails to comply with the reporting requirement or provides false or
             549      misleading information under Subsection (1):
             550          (a) is guilty of a class B misdemeanor; and
             551          (b) may be subject to:
             552          (i) revocation or suspension of a license issued under Section 59-14-202 ; and
             553          (ii) a civil penalty imposed by the commission in an amount not to exceed the greater
             554      of:


             555          (A) 500% of the retail value of the cigarettes for which a report was not properly made;
             556      or
             557          (B) $5,000.
             558          (5) The information under Subsection (1) may be disclosed by the commission as
             559      provided under Subsection 59-1-403 (3)(g).
             560          Section 13. Section 65A-3-1 is amended to read:
             561           65A-3-1. Trespassing on state lands -- Penalties.
             562          (1) A person is guilty of a class B misdemeanor and liable for the civil damages
             563      prescribed in Subsection (2) if he[: (a)], without written authorization from the division:
             564          [(i)] (a) removes, extracts, uses, consumes, or destroys any mineral resource, gravel,
             565      sand, soil, vegetation, or improvement on state lands;
             566          [(ii)] (b) grazes livestock on state lands;
             567          [(iii)] (c) uses, occupies, or constructs improvements or structures on state lands;
             568          [(iv)] (d) uses or occupies state lands for more than 30 days after the cancellation or
             569      expiration of written authorization;
             570          [(v)] (e) knowingly and willfully uses state lands for commercial gain; or
             571          [(vi)] (f) appropriates, alters, injures, or destroys any historical, prehistorical,
             572      archaeological, or paleontological resource on state lands[; or].
             573          [(b) uses or occupies state lands in violation of division rules.]
             574          (2) A person who commits any act described in Subsection (1) is liable for damages in
             575      the amount of:
             576          (a) three times the value of the mineral or other resource removed, destroyed, or
             577      extracted;
             578          (b) three times the amount of damage committed; or
             579          (c) three times the consideration which would have been charged by the division for
             580      use of the land during the period of trespass.
             581          (3) In addition to the damages described in Subsection (2), a person found guilty of a
             582      misdemeanor under Subsection (1) is subject to the penalties provided in Section 76-3-204 .
             583          (4) Money collected under this section shall be deposited in the fund in which like
             584      revenues from that land would be deposited.
             585          Section 14. Section 76-10-1233 (Effective 05/01/06) is amended to read:


             586           76-10-1233 (Effective 05/01/06). Content providers -- Material harmful to minors.
             587          (1) A content provider that is domiciled in Utah, or generates or hosts content in Utah,
             588      shall restrict access to material harmful to minors.
             589          [(2) The Division of Consumer Protection shall make rules in accordance with Title 63,
             590      Chapter 46a, Utah Administrative Rulemaking Act, to establish acceptable rating methods to
             591      be implemented by a content provider under Subsection (1).]
             592          [(3)] (2) If the attorney general determines that a content provider violates Subsection
             593      (1), the attorney general shall:
             594          (a) notify the content provider that the content provider is in violation of Subsection
             595      (1); and
             596          (b) notify the content provider that the content provider has 30 days to comply with
             597      Subsection (1) or be subject to Subsection [(4)] (3).
             598          [(4)] (3) If a content provider violates this section more than 30 days after receiving the
             599      notice provided in Subsection [(3)] (2), the content provider is guilty of a third degree felony.
             600          Section 15. Section 76-10-1234 is enacted to read:
             601          76-10-1234. Rulemaking authority.
             602          The Division of Consumer Protection shall make rules in accordance with Title 63,
             603      Chapter 46a, Utah Administrative Rulemaking Act, to establish acceptable rating methods to
             604      be implemented by a content provider under Subsection 76-10-1233 (1).




Legislative Review Note
    as of 1-24-06 8:16 AM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


Legislative Committee Note
    as of 01-24-06 10:33 AM


The Administrative Rules Review Committee recommended this bill.


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