No. 38125 (Amendment): Rule R152-26. Telephone Fraud Prevention Act

(Amendment)

DAR File No.: 38125
Filed: 11/08/2013 02:35:19 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 245 (1st Substitute, passed in the 2013 General Legislative Session) requires that an applicant for registration or for renewal of registration as a telephone soliciting business provide correct and complete information. If the applicant's information changes, or is incomplete, the applicant must correct the application. The division is required to establish by rule the process by which the application may be corrected.

Summary of the rule or change:

A definition of "durable goods" is added at Subsection R152-26-3(4). The process for correcting an application is added at Subsection R152-26-5(5). Limitations on correcting an application are stated at Subsection R152-26-5(5)(b).

State statutory or constitutional authorization for this rule:

• Section 13-26-3
• Section 13-2-5

Anticipated cost or savings to:

the state budget:

There should be no cost or savings to the state government. The process of evaluating applications and possible corrections can be accommodated in the division's current budget.

local governments:

There should be no cost or savings to local governments. Local governments do no register as telephone soliciting businesses and are not affected by this rule.

small businesses:

Small businesses that register as telephone soliciting businesses will only be affected by this change in the event they need to correct an application. Correcting an application should be the matter of a few moments work with negligible cost.

persons other than small businesses, businesses, or local governmental entities:

Persons that register as telephone soliciting businesses will only be affected by this change in the event they need to correct an application. Correcting an application should be the matter of a few moments work with negligible cost.

Compliance costs for affected persons:

Persons that register as telephone soliciting businesses will only be affected by this change in the event they need to correct an application. Correcting an application should be the matter of a few moments work with negligible cost.

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

Fiscal impact for business is limited to time and resources necessary to correct an application in the event that it is incomplete or provides incorrect information. This impact should be minimal.

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:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Angela Hendricks at the above address, by phone at 801-530-6035, by FAX at 801-538-6001, or by Internet E-mail at [e-mail]

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:

12/31/2013

This rule may become effective on:

01/07/2014

Authorized by:

Daniel O'Bannon, Director

RULE TEXT

R152. Commerce, Consumer Protection.

R152-26. Telephone Fraud Prevention Act.

R152-26-3. Definitions.

The following terms, in addition to the definitions appearing in Section 13-26-2, shall be used in construing this rule.

(1) "Director" means the director of the Utah Department of Commerce, Division of Consumer Protection.

(2) "Division" means the Utah Department of Commerce, Division of Consumer Protection.

(3) "Registrant" means any person who has submitted an application for registration to the division pursuant to Section 13-26-3.

(4) "Durable goods" means goods likely to be used for three years or more.

 

R152-26-5. Registration.

(1) A registrant shall submit an application for registration only on the form authorized by the division. An application may be summarily denied if:

(a) it is submitted on a form not authorized by the division;

(b) it is submitted on the authorized form but it is not legible; or

(c) it is submitted on the authorized form but it is incomplete in some material respect.

(2) The application shall include the following:

(a) the registrant's name, address, telephone number and facsimile number, if any;

(b) the names, addresses, birth dates and places, and social security numbers of all registrant's officers, directors, members, principals and/or key employees;

(c) the registrant's previous business addresses during the previous ten years;

(d) other names, if any, that the registrant does business under;

(e) identification of all licenses or permits currently held by the registrant and any that have been revoked or suspended;

(f) disclosure of any judgment, injunctive order or conviction of any of registrant's officers, directors, members, principals, or key-employees of racketeering or any offense involving fraud, thef t, embezzlement, fraudulent conversion of property, misappropriation of property or other similar crimes;

(g) the name and address of the registrant's registered agent;

(h) the location where telephone numbers are to be dialed; and

(i) a description of the goods or services that are to be the subject of the telephone solicitation.

(3) Each registrant shall submit copies of the following documents with their application:

(a) All scripts to be used in the telephone solicitation;

(b) Articles of incorporation or other organizational documentation showing registrant's current legal status.

(4) At the option of the director, the processing of an application by the division's staff may be delayed to give the registrant an opportunity to cure technical defects in his application.

(5) If information in an application for registration or for renewal of registration as a telephone soliciting business materially changes or becomes incorrect or incomplete, the applicant shall, within 30 days after the information changes or becomes incorrect or incomplete, submit the correct information on the corresponding page of the registration application with a cover page or letter clarifying that the submission is correcting information to an existing registration.

(a) Material changes to the legal status of the registrant's organization or ownership of the telephone soliciting business may not be submitted as an amendment to an existing registration. An initial application for registration must be completed and submitted for approval by the Division.

(b) The director may suspend or revoke a registration if material changes or corrections to the registration are not submitted as required by this rule.

 

KEY: telephones, fraud, consumers

Date of Enactment or Last Substantive Amendment: [February 23, 2007]2014

Notice of Continuation: August 9, 2011

Authorizing, and Implemented or Interpreted Law: 13-2-5

 

---