SALT LAKE CITY — The Utah House on Feb. 6 passed House Bill 96, which replaces a one-size-fits-all fraud penalty with a graduated schedule keyed to the value of the loss and whether the defendant purposefully hindered repossession of high-value property.

Representative Sam Cutler, sponsor of the bill, told the House the change is intended to give prosecutors better tools to pursue organized, high-dollar fraud—such as schemes involving expensive vehicles, boats or recreational vehicles that are hidden to prevent repossession. “Instead of a 1 size fits all for any fraud ... this puts in place a graduated schedule,” Cutler said.

Floor debate focused on the seriousness of elevating some fraud cases to felony status. Representative Thurston pressed the sponsor about circumstances that would lead to a second-degree felony and noted such felonies carry substantial prison terms. Thurston said he was ‘‘uncomfortable creating any new felonies’’ without assurance the conduct rises to that level.

In summation, Cutler said the bill aligns fraud penalties with existing theft statutes and that a second-degree felony would carry a potential sentence “1 to 15 years at the judge’s discretion,” putting fraud provisions in line with surrounding states and existing theft statutes, he said.

The floor vote approved the bill by a margin recorded in the House as 46 yes, 24 no; the bill will be transmitted to the Senate for consideration.

Key details: the sponsor said credit unions and banks currently have about $20 million in loans on their books where vehicles or other financed property cannot be located for repossession. The bill aims to create prosecutorial ability to pursue higher-value, organized fraud without subjecting petty offenders to disproportionate penalties.