SB 38: Consumer Protection Modifications - Utah

Substitute #2 → Enrolled · 6 edits · Mar 17, 2026

MODERATE

This bill amends Utah consumer protection laws to clarify enforcement powers, update registration requirements for credit services and charitable fundraisers, and establish new funding mechanisms. Key changes include defining 'transactional resources' to expand jurisdiction over out-of-state violations, adding specific grounds for denying credit service registrations, and requiring detailed financial disclosures from professional fundraisers.

Scope change

The bill expands the division's jurisdiction to cover violations facilitated by out-of-state 'transactional resources' (like mail or internet connections) and clarifies the scope of services regulated under the credit services and charitable fundraising chapters.

ENFORCEMENT

Added a specific definition of 'transactional resources' (including mail drops, internet connections, and business offices) to establish jurisdiction over violations that occur outside the state but use in-state resources.

Clarified that courts must award reasonable attorney fees, court costs, and investigation costs when granting judgments in favor of the division in administrative or civil actions.

REQUIREMENT

Updated registration requirements for credit services organizations to include detailed outlines of their programs, specific contract forms, and a notarized statement regarding any pending legal actions involving the organization or its owners.

Added new registration requirements for professional fundraising consultants to disclose their management plans, anticipated expenses, and the percentage of contributions projected to remain for the charitable organization.

FISCAL

Modified the Consumer Protection Education and Training Fund to allow the division to deposit administrative fines, criminal restitution, and civil damages directly into the fund for education and training purposes.

TECHNICAL

Corrected various formatting inconsistencies, such as inconsistent capitalization of 'internet' versus 'Internet' and renumbered sections to align with the new bill structure.

Introduced → Substitute #1 · 6 edits

MODERATE

This bill reorganizes Utah's consumer protection laws by renumbering multiple chapters and adding a new chapter on Generative Artificial Intelligence. It updates definitions to reflect modern business models, such as changing 'health spa' to 'fitness center' and adding 'fitness center services' to the list of regulated entities. The bill also clarifies enforcement powers, allowing the Division of Consumer Protection to recover costs from surety bonds and imposing stricter penalties for violations. Additionally, it mandates that registered agents maintain specific contact information and requires sellers to correct filing information if it becomes inaccurate.

Scope change

The bill expands the scope of consumer protection by adding Generative Artificial Intelligence and Fitness Center Services to the list of regulated industries and updates terminology to reflect current industry standards.

SCOPE

Added Title 13, Chapter 77 to regulate Generative Artificial Intelligence consumer disclosures and enforcement.

DEFINITION

Changed references from 'health spa' to 'fitness center' and added 'Fitness Center Services Protection Act' to the list of chapters enforced by the Division of Consumer Protection.

REQUIREMENT

Added a requirement for registered agents to maintain specific contact information and for filers to update incorrect information within 30 days.

ENFORCEMENT

Clarified that the Division of Consumer Protection may recover costs from surety bonds or certificates of deposit when entities violate the law.

Updated administrative fines and penalties, including the ability to impose fines up to $2,500 per violation and recover investigative costs.

TECHNICAL

Renumbered numerous existing chapters and sections to reorganize the code structure.

Substitute #1 → Substitute #2 · 7 edits

MODERATE

This bill reorganizes Utah's consumer protection laws by renumbering multiple chapters and adding new sections for Generative Artificial Intelligence and Earned Wage Access. It strengthens enforcement by allowing the Division of Consumer Protection to investigate a broader range of activities, recover costs from surety bonds, and impose higher fines. The bill also clarifies that registration does not constitute state endorsement and updates terminology to reflect modern business practices.

Scope change

The scope of the Division of Consumer Protection was expanded to include enforcement of new chapters regarding Generative Artificial Intelligence and Earned Wage Access Services, while existing chapters were renumbered for clarity.

SCOPE

Added enforcement authority for Title 13, Chapter 77 (Generative Artificial Intelligence) and Chapter 78 (Earned Wage Access Services).

REQUIREMENT

Required registered entities to maintain a registered agent in Utah and keep specific records for that agent.

Amended filing requirements to mandate updates within 30 days if information becomes incorrect or incomplete.

ENFORCEMENT

Expanded the Division's investigatory authority to cover all statutes it administers and enforces, not just specific ones.

Clarified circumstances under which the Division can recover costs from surety bonds or certificates of deposit.

DEFINITION

Updated terminology throughout the code to refer consistently to the 'Division of Consumer Protection' and renamed 'Health Spa Services' to 'Fitness Center Services'.

TECHNICAL

Renumbered and reorganized numerous existing chapters (e.g., Credit Services, Charitable Solicitations) to improve structure and consistency.

Consumer Protection Modifications

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