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Committee OKs change to keep Utah businesses from unintended out‑of‑state class actions
Summary
Senate Bill 150 clarifies that the 2003 Non‑Public Personal Information Act’s bar on class actions is a substantive remedy; sponsors said the change prevents plaintiffs from using federal procedural rules to pursue class suits against Utah businesses for data‑sale claims.
The committee voted unanimously to favorably recommend Senate Bill 150, which adjusts how Utah’s 2003 Non‑Public Personal Information Act treats class-action remedies.
Senator Cullimore explained the original 2003 act prohibited class actions for certain nonpublic personal information violations while providing statutory damages. Subsequent U.S. Supreme Court and federal-court developments — including discussion of Shady Grove — have created a scenario where out‑of‑state plaintiff firms have brought class actions in federal court against Utah businesses for alleged sales of nonpublic consumer information. Cullimore said SB 150 clarifies the statute by placing the class‑action bar into the law’s substantive remedies section so it cannot be severed as a procedural rule in federal court.
Sponsor Cullimore disclosed a potential conflict of interest as a private-practice attorney in Utah and said he had heard the bill from in‑state attorneys and businesses that face these suits. Committee members asked no substantive questions and saw no public testimony for or against the bill.
The committee voted 6–0 to move the bill to the floor with a favorable recommendation.
