13-26-102. Registration and surety bond or certificate of deposit required.
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Effective 5/6/2026
13-26-102. Registration and surety bond or certificate of deposit required.
(a)Unless exempt under Section 13-26-104 , a seller shall register annually with the division before engaging in telephone solicitations if:
(i)the seller engages in telephone solicitations that:
(A)originate in Utah; or
(B)are received in Utah; or
(ii)the seller, or a solicitor on behalf of the seller, conducts a business operation in Utah.
(2)To register as a seller, a person shall submit to the division a registration application:
(a)in the manner the division determines; and
(b)that includes:
(i)a registration application fee in an amount the division determines in accordance with Section 63J-1-504 ;
(ii)any information the division requires by rule the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(iii)a designated registered agent for service of process in this state and the registered agent's:
(A)name;
(B)street address;
(C)mailing address; and
(D)telephone number.
(3)A seller that is subject to this chapter shall obtain and maintain the following:
(a)a surety bond issued by a surety authorized to transact security business in this state; or
(b)a certificate of deposit held in this state in a financial institution authorized under the laws of this state or the laws of the United States to accept deposits from the public.
(4)The surety bond or certificate of deposit described in Subsection
(3)shall be:
(a)in the amount of:
(i)$25,000 if:
(A)the seller or an affiliated person has not violated this chapter in the three-year period immediately before the day on which the seller files the application; and
(B)the seller has fewer than 10 employees;
(ii)$50,000 if:
(A)the seller or an affiliated person has not violated this chapter in the three-year period immediately before the day on which the seller files the application; and
(B)the seller has 10 or more employees; or
(iii)$75,000 if the seller or an affiliated person has violated this chapter in the three-year period immediately before the day on which the seller files the application; and
(b)payable to the division for the benefit of a consumer who incurs damages as the result of the seller's violation of this chapter.
(5)If the consumer recovers actual damages from an action resulting from the seller's violation of this chapter before the division distributes the funds in the surety bond or certificate of deposit described in Subsection
(3)to the consumer in accordance with Subsection (4)(b) , the division may recover from the surety bond or certificate of deposit:
(a)administrative fines;
(b)civil penalties;
(c)investigative costs;
(d)attorney fees; and
(e)other costs of collecting and distributing funds under this chapter.
(6)A seller shall submit to the division, as part of the seller's registration application:
(a)a fingerprint card in a form the division approves;
(b)consent to a criminal background check conducted by:
(i)the Bureau of Criminal Identification created in Section 53-10-201 ; or
(ii)another state or federal agency that performs criminal background checks; and
(c)provide a disclosure that states whether a seller or an affiliated person has been convicted of a felony or misdemeanor involving theft, fraud, or dishonesty, in the 10-year period immediately preceding the day on which the seller files the application.
(7)A seller shall pay the cost of:
(a)the fingerprint card described in Subsection (6)(a) ; and
(b)the criminal background check described in Subsection (6)(b) .
(8)A seller registration is effective for one year after the day on which the division approves a seller's registration application.
(9)To renew a seller registration, a seller shall submit a registration renewal application to the division at least 30 days before the day on which the seller's registration expires.
(10)Registration under this section does not constitute an approval or endorsement of the seller by the division or the state.
Renumbered and Amended by Chapter 95 , 2026 General Session