Section 304 – Definition — Limitations on maintaining a class action that relates to a tax or fee — Requirements for a person to be included as a member of a class in a class action — Rulemaking authority — Limitations on recovery by members of a class — Severability.

Effective 5/10/2016
59-1-304. Definition — Limitations on maintaining a class action that relates to a tax or fee — Requirements for a person to be included as a member of a class in a class action — Rulemaking authority — Limitations on recovery by members of a class — Severability.

• (1) As used in this section, “tax or fee” means a tax or fee administered by the commission.

• (2) A class action that relates to a tax or fee may not be maintained in any court if a claim sought by a representative party seeking to maintain the class action arises as a result of:
  • (a) a person collecting a tax or fee from the representative party if the representative party is not required by law to pay the tax or fee; or
  • (b) any of the following that requires a change in the manner in which a tax or fee is required to be collected or paid:
    • (i) an administrative rule made by the commission;
    • (ii) a private letter ruling issued by the commission; or
    • (iii) a decision issued by:
      • (A) the commission; or
      • (B) a court of competent jurisdiction.

• (3)
  • (a) A person may be included as a member of a class in a class action relating to a tax or fee only if the person:
    • (i) exhausts all administrative remedies with the commission; and
    • (ii) requests in writing to be included as a member of the class.
  • (b)
    • (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules to simplify and expedite the administrative remedies a person shall exhaust as required by Subsection (3)(a).
    • (ii) The rules required by Subsection (3)(b)(i) may include rules providing for:
      • (A) expedited filing procedures and forms;
      • (B) consolidation of hearings procedures as may be reasonably needed to accommodate potential inclusion of similarly situated persons; and
      • (C) the designation of test or sample cases to avoid multiple hearings.

• (4) Subject to Subsection (5), in a class action brought under this section against the state or its political subdivisions in which members of the class are awarded a refund or credit of a tax or fee by a court of competent jurisdiction, the total amount that may be recovered by members of the class may not exceed the difference between:
  • (a) the sum of:
    • (i) the amount of the refund or credit awarded to members of the class; and
    • (ii) interest as provided in Section 59-1-402; and
  • (b) if awarded in accordance with Subsection (5), the sum of:
    • (i) reasonable costs; and
    • (ii) reasonable attorney fees.

• (5)
  • (a) For purposes of Subsection (4), at the discretion of the court, the court may award:
    • (i) reasonable costs as determined by the court; and
    • (ii) reasonable attorney fees determined under Subsection (5)(b).
  • (b) Reasonable attorney fees awarded in a class action may not exceed a reasonable hourly rate for work actually performed:
    • (i) as determined by the court; and
    • (ii) taking into account all facts and circumstances that the court considers reasonable.

• (6) If any provision of this section, or the application of any provision of this section to any person or circumstance is held unconstitutional or invalid by a court of competent jurisdiction, the remainder of the section shall be given effect without the invalid provision or application.

Amended by Chapter 135, 2016 General Session