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Committee backs SB150 to preserve Utah's bar on class actions over nonpublic personal information
Summary
The Judiciary Committee unanimously favorably recommended first substitute SB150, a bill that repositions Utah's longstanding bar on class actions over nonpublic personal information as a substantive right after federal courts' procedural rulings raised a conflict in federal litigation.
The Utah House Judiciary Committee on Oct. 12 voted unanimously to favorably recommend first substitute SB150, a bill that restates the state's long-established bar on class actions over nonpublic personal information as a substantive right to prevent federal courts from treating the bar as merely procedural.
Sponsor Senator Kollemore told the committee the measure is "somewhat legally technical in nature," and said it "is not really changing policy of Utah at all." He said a U.S. Supreme Court case, Shady Grove, led some federal courts to treat procedural state-law bars as overridden by federal civil-procedure rules. Because federal courts in Utah have at times ruled that the existing Utah code provision barring class actions in these claims is procedural, out-of-state plaintiffs have used that route to bring class suits against Utah businesses. Kollemore said the bill moves the bar into a part of the code that ensures it will be treated as a substantive state law right.
Representative Auxier asked for a plain-language summary: "So in layman's terms, this means that you can't bring class actions not because of choice, but because it's part of the underlying law. Is that Correct. That's what we're saying here." Kollemore answered in the affirmative.
During public comment, Dave Davis, president of the Utah Retail Merchants Association, testified in support, saying, "This is a good bill. You should vote for it." No opposing public testimony was recorded.
Representative Loubay moved that the committee favorably recommend first substitute SB150 to the House floor. Committee members characterized the change as clarifying legislative intent so the state's long-standing rule would apply in both state and federal courts. The motion passed unanimously.
The bill addresses litigation strategy and venue outcomes for suits alleging unlawful sale or disclosure of nonpublic personal information; sponsors say it clarifies the legislature's intent that the bar to class actions in such claims is substantive. The committee recorded no numeric roll-call; votes were taken by voice and recorded as unanimous.
SB150 will move to the House floor with a favorable committee recommendation.
