First Substitute H.B. 275

Representative Gage Froerer proposes the following substitute bill:

1 DIVISION OF REAL ESTATE AMENDMENTS
2 2010 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Gage Froerer
5 Senate Sponsor: Wayne L. Niederhauser
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to the Division of Real Estates' regulation of the
10 appraisal, mortgage, and real estate industries.
11 Highlighted Provisions:
12 This bill:
13 . recodifies Title 61, Chapter 2, Division of Real Estate, and Chapter 2a, Real Estate
14 Recovery Fund Act, and as part of the recodification creates Chapter 2f, Real Estate
15 Licensing and Practices Act;
16 . addresses definitions and consistency of terminology;
17 . addresses powers under appraisal, mortgage, and real estate statutes, including:
18 . providing for the suspension of a license, registration, or certification for
19 payment of a fee with a dishonored instrument;
20 . addressing investigatory powers and costs;
21 . addressing the division providing lists of licensee, registrants, and certificate
22 holders;
23 . addressing the effect of a failure to accurately disclose a criminal history; and
24 . requiring deadlines for compliance with disciplinary actions;
25 . increases certain fines;

26 . clarifies procedures related to the renewal of a registration as a trainee under
27 appraisal statutes;
28 . modifies the powers of the Real Estate Appraiser Licensing and Certification Board
29 with regard to examinations and education;
30 . modifies requirements for licensing and certification under appraisal statutes;
31 . corrects references to trainees under appraisal statutes;
32 . addresses ability of persons licensed, certified, or registered under appraisal statutes
33 to operate as a professional corporation or limited liability company;
34 . requires that an individual licensed under mortgage statutes be sponsored by a
35 licensed entity;
36 . addresses education and examination requirements under mortgage statutes that are
37 specific to obtaining a license in Utah;
38 . addresses the process and requirements to obtain a license, renew a license, or notify
39 the division of changes in certain information;
40 . provides for certain past revocations of a license under mortgage statutes to be
41 converted to a suspension of the license;
42 . modifies criminal penalties;
43 . clarifies procedures for making claims against the mortgage recovery funds and real
44 estate; and
45 . makes technical and conforming amendments.
46 Monies Appropriated in this Bill:
47 None
48 Other Special Clauses:
49 This bill coordinates with H.B. 53, Foreclosure Rescue and Loan Modification
50 Amendments, to technically merge changes.
51 Utah Code Sections Affected:
52 AMENDS:
53 10-3-1110, as last amended by Laws of Utah 2008, Chapter 169
54 13-25a-111, as last amended by Laws of Utah 2005, Chapter 18
55 16-11-2, as last amended by Laws of Utah 2009, Chapter 220
56 17-50-106, as enacted by Laws of Utah 2008, Chapter 169

57 31A-2-402, as last amended by Laws of Utah 2009, Chapter 372
58 34-44-102, as enacted by Laws of Utah 2007, Chapter 65
59 34A-2-104, as last amended by Laws of Utah 2009, Chapter 185
60 41-1a-422, as last amended by Laws of Utah 2009, Chapters 183, 348, and 380
61 48-2c-1502, as last amended by Laws of Utah 2009, Chapter 141
62 57-11-2, as last amended by Laws of Utah 2009, Chapter 352
63 57-11-14, as last amended by Laws of Utah 2009, Chapter 352
64 57-19-14, as last amended by Laws of Utah 1990, Chapter 199
65 57-21-2, as last amended by Laws of Utah 2008, Chapter 382
66 57-23-5, as enacted by Laws of Utah 1991, Chapter 262
67 57-27-102, as enacted by Laws of Utah 2009, Chapter 194
68 58-56-16, as last amended by Laws of Utah 2009, Chapter 183
69 61-1-13, as last amended by Laws of Utah 2009, Chapters 351 and 355
70 61-2b-2, as last amended by Laws of Utah 2008, Chapters 382 and 387
71 61-2b-3, as last amended by Laws of Utah 2005, Chapter 199
72 61-2b-6, as last amended by Laws of Utah 2009, Chapters 183 and 352
73 61-2b-8, as last amended by Laws of Utah 2009, Chapter 352
74 61-2b-10, as last amended by Laws of Utah 2005, Chapter 199
75 61-2b-14, as last amended by Laws of Utah 2005, Chapter 199
76 61-2b-15, as last amended by Laws of Utah 2005, Chapter 199
77 61-2b-17, as last amended by Laws of Utah 2007, Chapter 325
78 61-2b-18, as last amended by Laws of Utah 2009, Chapter 183
79 61-2b-19, as last amended by Laws of Utah 2005, Chapter 199
80 61-2b-20, as last amended by Laws of Utah 2009, Chapter 352
81 61-2b-25, as last amended by Laws of Utah 2008, Chapter 387
82 61-2b-28, as last amended by Laws of Utah 2008, Chapters 382 and 387
83 61-2b-29, as last amended by Laws of Utah 2009, Chapter 352
84 61-2b-30.5, as last amended by Laws of Utah 2008, Chapter 387
85 61-2b-32, as last amended by Laws of Utah 1999, Chapter 117
86 61-2b-33, as last amended by Laws of Utah 2009, Chapter 352
87 61-2b-36, as last amended by Laws of Utah 2005, Chapter 199

88 61-2b-39, as last amended by Laws of Utah 2005, Chapter 199
89 61-2b-40, as last amended by Laws of Utah 2005, Chapter 199
90 61-2c-102, as last amended by Laws of Utah 2009, Chapter 372
91 61-2c-103, as last amended by Laws of Utah 2009, Chapters 183, 352, and 372
92 61-2c-104, as last amended by Laws of Utah 2009, Chapters 352 and 372
93 61-2c-105, as last amended by Laws of Utah 2009, Chapter 372
94 61-2c-106, as last amended by Laws of Utah 2009, Chapter 372
95 61-2c-201, as last amended by Laws of Utah 2009, Chapters 183 and 372
96 61-2c-202, as last amended by Laws of Utah 2009, Chapters 183 and 372
97 61-2c-203, as last amended by Laws of Utah 2009, Chapter 372
98 61-2c-204.1, as enacted by Laws of Utah 2009, Chapter 372
99 61-2c-205, as last amended by Laws of Utah 2009, Chapters 183, 352, and 372
100 61-2c-205.1, as enacted by Laws of Utah 2009, Chapter 372
101 61-2c-206, as last amended by Laws of Utah 2009, Chapters 183 and 372
102 61-2c-301, as last amended by Laws of Utah 2009, Chapters 72 and 372
103 61-2c-302, as last amended by Laws of Utah 2009, Chapter 372
104 61-2c-401, as last amended by Laws of Utah 2007, Chapter 325
105 61-2c-402, as last amended by Laws of Utah 2009, Chapters 352 and 372
106 61-2c-404, as last amended by Laws of Utah 2007, Chapter 325
107 61-2c-501, as last amended by Laws of Utah 2009, Chapter 352
108 61-2c-502, as last amended by Laws of Utah 2009, Chapters 352 and 372
109 61-2c-503, as last amended by Laws of Utah 2009, Chapter 352
110 61-2c-505, as enacted by Laws of Utah 2004, Chapter 297
111 61-2c-507, as last amended by Laws of Utah 2009, Chapter 372
112 63G-2-302, as last amended by Laws of Utah 2009, Chapters 126, 349, and 379
113 63J-1-602, as enacted by Laws of Utah 2009, Chapter 368
114 70D-3-102, as enacted by Laws of Utah 2009, Chapter 72
115 72-5-116, as last amended by Laws of Utah 2008, Chapter 169
116 ENACTS:
117 61-2-101, Utah Code Annotated 1953
118 61-2-102, Utah Code Annotated 1953

119 61-2-202, Utah Code Annotated 1953
120 61-2c-209, Utah Code Annotated 1953
121 61-2c-501.5, Utah Code Annotated 1953
122 61-2f-101, Utah Code Annotated 1953
123 61-2f-105, Utah Code Annotated 1953
124 61-2f-206, Utah Code Annotated 1953
125 61-2f-305, Utah Code Annotated 1953
126 RENUMBERS AND AMENDS:
127 61-2-201, (Renumbered from 61-2-5, as last amended by Laws of Utah 2009, Chapters
128 269 and 372)
129 61-2-203, (Renumbered from 61-2-5.1, as last amended by Laws of Utah 2008, Chapter
130 382)
131 61-2-204, (Renumbered from 61-2-28, as last amended by Laws of Utah 2008, Chapters
132 216 and 382)
133 61-2f-102, (Renumbered from 61-2-2, as last amended by Laws of Utah 2005, Chapter
134 257)
135 61-2f-103, (Renumbered from 61-2-5.5, as last amended by Laws of Utah 2008,
136 Chapter 387)
137 61-2f-104, (Renumbered from 61-2-14, as last amended by Laws of Utah 1983, Chapter
138 257)
139 61-2f-106, (Renumbered from 61-2-22, as last amended by Laws of Utah 1985, Chapter
140 162)
141 61-2f-201, (Renumbered from 61-2-1, as last amended by Laws of Utah 1996, Chapter
142 102)
143 61-2f-202, (Renumbered from 61-2-3, as last amended by Laws of Utah 2009, Chapter
144 356)
145 61-2f-203, (Renumbered from 61-2-6, as last amended by Laws of Utah 2009, Chapter
146 352)
147 61-2f-204, (Renumbered from 61-2-9, as last amended by Laws of Utah 2009, Chapters
148 183 and 352)
149 61-2f-205, (Renumbered from 61-2-7, as last amended by Laws of Utah 1991, Chapter

150 165)
151 61-2f-207, (Renumbered from 61-2-7.1, as last amended by Laws of Utah 2009,
152 Chapter 183)
153 61-2f-301, (Renumbered from 61-2-7.2, as last amended by Laws of Utah 2009,
154 Chapter 352)
155 61-2f-302, (Renumbered from 61-2-10, as last amended by Laws of Utah 2009, Chapter
156 352)
157 61-2f-303, (Renumbered from 61-2-25, as enacted by Laws of Utah 2003, Chapter 264)
158 61-2f-304, (Renumbered from 61-2-8, as last amended by Laws of Utah 2000, Chapter
159 86)
160 61-2f-306, (Renumbered from 61-2-20, as last amended by Laws of Utah 2008, Chapter
161 387)
162 61-2f-307, (Renumbered from 61-2-26, as last amended by Laws of Utah 2008, Chapter
163 382)
164 61-2f-308, (Renumbered from 61-2-27, as enacted by Laws of Utah 2005, Chapter 252)
165 61-2f-401, (Renumbered from 61-2-11, as last amended by Laws of Utah 2009, Chapter
166 352)
167 61-2f-402, (Renumbered from 61-2-11.5, as last amended by Laws of Utah 2007,
168 Chapter 325)
169 61-2f-403, (Renumbered from 61-2-24, as enacted by Laws of Utah 1996, Chapter 102)
170 61-2f-404, (Renumbered from 61-2-12, as last amended by Laws of Utah 2009, Chapter
171 352)
172 61-2f-405, (Renumbered from 61-2-17, as last amended by Laws of Utah 2009, Chapter
173 352)
174 61-2f-406, (Renumbered from 61-2-13, as last amended by Laws of Utah 2008, Chapter
175 387)
176 61-2f-407, (Renumbered from 61-2-21, as last amended by Laws of Utah 2008,
177 Chapters 370, 382, and 387)
178 61-2f-408, (Renumbered from 61-2-13.5, as enacted by Laws of Utah 1997, Chapter
179 232)
180 61-2f-409, (Renumbered from 61-2-18, as last amended by Laws of Utah 1985, Chapter

181 162)
182 61-2f-501, (Renumbered from 61-2a-1, as enacted by Laws of Utah 1975, Chapter 172)
183 61-2f-502, (Renumbered from 61-2a-2, as last amended by Laws of Utah 2009, Chapter
184 352)
185 61-2f-503, (Renumbered from 61-2a-3, as last amended by Laws of Utah 2009, Chapter
186 352)
187 61-2f-504, (Renumbered from 61-2a-12, as last amended by Laws of Utah 2009,
188 Chapter 352)
189 61-2f-505, (Renumbered from 61-2a-4, as last amended by Laws of Utah 2009, Chapter
190 352)
191 61-2f-506, (Renumbered from 61-2a-5, as last amended by Laws of Utah 2009, Chapter
192 352)
193 61-2f-507, (Renumbered from 61-2a-6, as last amended by Laws of Utah 2009, Chapter
194 352)
195 61-2f-508, (Renumbered from 61-2a-7, as last amended by Laws of Utah 2009, Chapter
196 352)
197 61-2f-509, (Renumbered from 61-2a-8, as last amended by Laws of Utah 1983, Chapter
198 256)
199 61-2f-510, (Renumbered from 61-2a-9, as last amended by Laws of Utah 2009, Chapter
200 352)
201 61-2f-511, (Renumbered from 61-2a-11, as last amended by Laws of Utah 2009,
202 Chapter 352)
203 61-2f-512, (Renumbered from 61-2a-10, as last amended by Laws of Utah 1983,
204 Chapter 256)
205 REPEALS:
206 61-2-4, as last amended by Laws of Utah 1996, Chapter 102
207 61-2b-11, as last amended by Laws of Utah 1999, Chapter 117
208 61-2b-16, as last amended by Laws of Utah 1999, Chapter 117
209 61-2c-207, as last amended by Laws of Utah 2009, Chapter 372
210 61-2c-208, as last amended by Laws of Utah 2009, Chapters 183 and 372
211 Utah Code Sections Affected by Coordination Clause:

212 61-2c-102, as last amended by Laws of Utah 2009, Chapter 372
213 61-2f-102, Utah Code Annotated 1953
214
215 Be it enacted by the Legislature of the state of Utah:
216 Section 1. Section 10-3-1110 is amended to read:
217 10-3-1110. Exemption from state licensure by Division of Real Estate.
218 In accordance with Section [ 61-2-3 ] 61-2f-202 , an employee of a municipality is
219 exempt from licensure under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate
220 Licensing and Practices Act:
221 (1) when engaging in an act on behalf of the municipality in accordance with:
222 (a) this title; or
223 (b) Title 11, Cities, Counties, and Local Taxing Units; and
224 (2) if the act described in Subsection (1) is related to one or more of the following:
225 (a) acquiring real [property] estate, including by eminent domain;
226 (b) disposing of real [property] estate;
227 (c) providing services that constitute property management, as defined in Section
228 [ 61-2-2 ] 61-2f-102 ; or
229 (d) leasing real [property] estate.
230 Section 2. Section 13-25a-111 is amended to read:
231 13-25a-111. Exemptions.
232 Notwithstanding any other provision of this chapter, Sections 13-25a-103 and
233 13-25a-108 do not apply to:
234 (1) a telephone call made for a charitable purpose as defined in Section 13-22-2 ;
235 (2) a charitable solicitation as defined in Section 13-22-2 ; or
236 (3) a person who holds a license or registration:
237 (a) under Title 31A, Insurance Code;
238 (b) issued by the Division of Real Estate established in Section [ 61-2-5 ] 61-2-201 ; or
239 (c) issued by the National Association of Securities Dealers.
240 Section 3. Section 16-11-2 is amended to read:
241 16-11-2. Definitions.
242 As used in this chapter:

243 (1) "Filed" means the division has received and approved, as to form, a document
244 submitted under the provisions of this chapter, and has marked on the face of the document a
245 stamp or seal indicating the time of day and date of approval, the name of the division, the
246 division director's signature and division seal, or facsimiles of the signature or seal.
247 (2) "Professional corporation" means a corporation organized under this chapter.
248 (3) "Professional service" means the personal service rendered by:
249 (a) a physician, surgeon, or doctor of medicine holding a license under Title 58,
250 Chapter 67, Utah Medical Practice Act, and any subsequent laws regulating the practice of
251 medicine;
252 (b) a doctor of dentistry holding a license under Title 58, Chapter 69, Dentist and
253 Dental Hygienist Practice Act, and any subsequent laws regulating the practice of dentistry;
254 (c) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
255 Utah Osteopathic Medical Practice Act, and any subsequent laws regulating the practice of
256 osteopathy;
257 (d) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
258 Practice Act, and any subsequent laws regulating the practice of chiropractic;
259 (e) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
260 Physician Licensing Act, and any subsequent laws regulating the practice of podiatry;
261 (f) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry
262 Practice Act, and any subsequent laws regulating the practice of optometry;
263 (g) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice Act,
264 and any subsequent laws regulating the practice of veterinary medicine;
265 (h) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
266 and any subsequent laws regulating the practice of architecture;
267 (i) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
268 Accountant Licensing Act, and any subsequent laws regulating the practice of public
269 accounting;
270 (j) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician
271 Practice Act, and any subsequent laws regulating the practice of naturopathy;
272 (k) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice Act,
273 and any subsequent laws regulating the practice of pharmacy;

274 (l) an attorney granted the authority to practice law by:
275 (i) the Utah Supreme Court; or
276 (ii) the Supreme Court, other court, agency, instrumentality, or regulating board that
277 licenses or regulates the authority to practice law in any state or territory of the United States
278 other than Utah;
279 (m) a professional engineer registered under Title 58, Chapter 22, Professional
280 Engineers and Professional Land Surveyors Licensing Act;
281 (n) a [real estate broker or real estate] principal broker, associate broker, or sales agent
282 holding a license under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing
283 and Practices Act, and any subsequent laws regulating the selling, exchanging, purchasing,
284 renting, or leasing of real estate;
285 (o) a psychologist holding a license under Title 58, Chapter 61, Psychologist Licensing
286 Act, and any subsequent laws regulating the practice of psychology;
287 (p) a clinical or certified social worker holding a license under Title 58, Chapter 60,
288 Part 2, Social Worker Licensing Act, and any subsequent laws regulating the practice of social
289 work;
290 (q) a physical therapist holding a license under Title 58, Chapter 24b, Physical Therapy
291 Practice Act, and any subsequent laws regulating the practice of physical therapy;
292 (r) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
293 Chapter 44a, Nurse Midwife Practice Act; [or]
294 (s) a landscape architect licensed under Title 58, Chapter 53, Landscape Architects
295 Licensing Act, and any subsequent laws regulating landscape architects[.]; or
296 (t) an individual licensed, certified, or registered under Title 61, Chapter 2b, Real
297 Estate Appraiser Licensing and Certification Act, and any subsequent laws regulating the
298 practice of appraising real estate.
299 (4) "Regulating board" means the board that is charged with the licensing and
300 regulation of the practice of the profession which the professional corporation is organized to
301 render. The definitions of Title 16, Chapter 10a, Utah Revised Business Corporation Act,
302 apply to this chapter unless the context clearly indicates that a different meaning is intended.
303 Section 4. Section 17-50-106 is amended to read:
304 17-50-106. Exemption from state licensure by Division of Real Estate.

305 In accordance with Section [ 61-2-3 ] 61-2f-202 , an employee of a county is exempt from
306 licensure under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and
307 Practices Act:
308 (1) when engaging in an act on behalf of the county in accordance with:
309 (a) this title; or
310 (b) Title 11, Cities, Counties, and Local Taxing Units; and
311 (2) if the act described in Subsection (1) is related to one or more of the following:
312 (a) acquiring real [property] estate, including by eminent domain;
313 (b) disposing of real [property] estate;
314 (c) providing services that constitute property management, as defined in Section
315 [ 61-2-2 ] 61-2f-102 ; or
316 (d) leasing real [property] estate.
317 Section 5. Section 31A-2-402 is amended to read:
318 31A-2-402. Definitions.
319 As used in this part:
320 (1) "Commission" means the Title and Escrow Commission created in Section
321 31A-2-403 .
322 (2) "Concurrence" means the entities given a concurring role must jointly agree for the
323 action to be taken.
324 (3) "Dual licensed title licensee" means a title licensee who holds:
325 (a) a producer license as a title licensee; and
326 (b) a license or certificate under:
327 (i) Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and
328 Practices Act;
329 (ii) Title 61, Chapter 2b, Real Estate Appraiser Licensing and Certification Act; or
330 (iii) Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act.
331 (4) "Real Estate Commission" means the Real Estate Commission created in Section
332 [ 61-2-5.5 ] 61-2f-103 .
333 (5) "Title licensee" means a person licensed under this title as:
334 (a) an agency with a title insurance line of authority;
335 (b) a producer with:

336 (i) a general title insurance line of authority; or
337 (ii) a specific category of authority for title insurance; or
338 (c) a title insurance adjuster.
339 Section 6. Section 34-44-102 is amended to read:
340 34-44-102. Definitions.
341 As used in this chapter:
342 (1) "Business relationship" means an agreement that governs the relationship of
343 principal and sales representative.
344 (2) "Commission" means:
345 (a) compensation:
346 (i) that accrues to a sales representative;
347 (ii) for payment by a principal; and
348 (iii) at a rate expressed as a percentage of the dollar amount of sales, orders, or profits;
349 or
350 (b) any other method of compensation agreed to between a sales representative and a
351 principal including:
352 (i) fees for services; and
353 (ii) a retainer.
354 (3) "Principal" means a person who:
355 (a) engages in any of the following activities with regard to a product or service:
356 (i) manufactures;
357 (ii) produces;
358 (iii) imports;
359 (iv) sells; or
360 (v) distributes;
361 (b) establishes a business relationship with a sales representative to solicit orders for a
362 product or a service described in Subsection (3)(a); and
363 (c) agrees to compensate a sales representative, in whole or in part, by commission.
364 (4) (a) Except as provided in Subsection (4)(b), "sales representative" means a person
365 who enters into a business relationship with a principal:
366 (i) to solicit orders for a product or a service described in Subsection (3)(a); and

367 (ii) under which the person is compensated, in whole or in part, by commission.
368 (b) "Sales representative" does not include:
369 (i) an employee of a principal;
370 (ii) a person licensed under Title 31A, Insurance Code;
371 (iii) a person licensed under Title 41, Chapter 3, Part 2, Licensing;
372 (iv) a person licensed under Title 61, Chapter [2, Division of Real Estate] 2f, Real
373 Estate Licensing and Practices Act;
374 (v) a person who provides a product or service under a business relationship with a
375 principal that is incident to the purchase or sale of real property; or
376 (vi) a person who places an order or purchases a product or service for that person's
377 own account for resale.
378 (5) "Terminates" or "termination" means the end of a business relationship between a
379 sales representative and a principal, whether by:
380 (a) agreement;
381 (b) expiration of a time period; or
382 (c) exercise of a right of termination by either the principal or the sales representative.
383 Section 7. Section 34A-2-104 is amended to read:
384 34A-2-104. "Employee," "worker," and "operative" defined -- Specific
385 circumstances -- Exemptions.
386 (1) As used in this chapter and Chapter 3, Utah Occupational Disease Act, "employee,"
387 "worker," and "operative" mean:
388 (a) (i) an elective or appointive officer and any other person:
389 (A) in the service of:
390 (I) the state;
391 (II) a county, city, or town within the state; or
392 (III) a school district within the state;
393 (B) serving the state, or any county, city, town, or school district under:
394 (I) an election;
395 (II) appointment; or
396 (III) any contract of hire, express or implied, written or oral; and
397 (ii) including:

398 (A) an officer or employee of the state institutions of learning; and
399 (B) a member of the National Guard while on state active duty; and
400 (b) a person in the service of any employer, as defined in Section 34A-2-103 , who
401 employs one or more workers or operatives regularly in the same business, or in or about the
402 same establishment:
403 (i) under any contract of hire:
404 (A) express or implied; and
405 (B) oral or written;
406 (ii) including aliens and minors, whether legally or illegally working for hire; and
407 (iii) not including any person whose employment:
408 (A) is casual; and
409 (B) not in the usual course of the trade, business, or occupation of the employee's
410 employer.
411 (2) (a) Unless a lessee provides coverage as an employer under this chapter and
412 Chapter 3, any lessee in mines or of mining property and each employee and sublessee of the
413 lessee shall be:
414 (i) covered for compensation by the lessor under this chapter and Chapter 3;
415 (ii) subject to this chapter and Chapter 3; and
416 (iii) entitled to the benefits of this chapter and Chapter 3, to the same extent as if the
417 lessee, employee, or sublessee were employees of the lessor drawing the wages paid employees
418 for substantially similar work.
419 (b) The lessor may deduct from the proceeds of ores mined by the lessees an amount
420 equal to the insurance premium for that type of work.
421 (3) (a) A partnership or sole proprietorship may elect to include any partner of the
422 partnership or owner of the sole proprietorship as an employee of the partnership or sole
423 proprietorship under this chapter and Chapter 3.
424 (b) If a partnership or sole proprietorship makes an election under Subsection (3)(a),
425 the partnership or sole proprietorship shall serve written notice upon its insurance carrier
426 naming the persons to be covered.
427 (c) A partner of a partnership or owner of a sole proprietorship may not be considered
428 an employee of the partner's partnership or the owner's sole proprietorship under this chapter or

429 Chapter 3 until the notice described in Subsection (3)(b) is given.
430 (d) For premium rate making, the insurance carrier shall assume the salary or wage of
431 the partner or sole proprietor electing coverage under Subsection (3)(a) to be 100% of the
432 state's average weekly wage.
433 (4) (a) A corporation may elect not to include any director or officer of the corporation
434 as an employee under this chapter and Chapter 3.
435 (b) If a corporation makes an election under Subsection (4)(a), the corporation shall
436 serve written notice upon its insurance carrier naming the persons to be excluded from
437 coverage.
438 (c) A director or officer of a corporation is considered an employee under this chapter
439 and Chapter 3 until the notice described in Subsection (4)(b) is given.
440 (5) As used in this chapter and Chapter 3, "employee," "worker," and "operative" do
441 not include:
442 (a) a [real estate] sales agent or [real estate] associate broker, as defined in Section
443 [ 61-2-2 ] 61-2f-102 , who performs services in that capacity for a [real estate] principal broker
444 if:
445 (i) substantially all of the [real estate] sales agent's or [associated] associate broker's
446 income for services is from real estate commissions; and
447 (ii) [the services of the real estate sales agent or associated broker] the sales agent's or
448 associate broker's services are performed under a written contract that provides that:
449 (A) the real estate agent is an independent contractor; and
450 (B) the [real estate] sales agent or [associated] associate broker is not to be treated as
451 an employee for federal income tax purposes;
452 (b) an offender performing labor under Section 64-13-16 or 64-13-19 , except as
453 required by federal statute or regulation;
454 (c) an individual who for an insurance producer, as defined in Section 31A-1-301 ,
455 solicits, negotiates, places or procures insurance if:
456 (i) substantially all of the individual's income from those services is from insurance
457 commissions; and
458 (ii) the services of the individual are performed under a written contract that states that
459 the individual:

460 (A) is an independent contractor;
461 (B) is not to be treated as an employee for federal income tax purposes; and
462 (C) can derive income from more than one insurance company;
463 (d) notwithstanding Subsection 34A-2-103 (4), an individual who provides domestic
464 work for a person if:
465 (i) the person for whom the domestic work is being provided receives or is eligible to
466 receive the domestic work under a state or federal program designed to pay the costs of
467 domestic work to prevent the person from being placed in:
468 (A) an institution; or
469 (B) a more restrictive placement than where that person resides at the time the person
470 receives the domestic work;
471 (ii) the individual is paid by a person designated by the Secretary of the Treasury in
472 accordance with Section 3504, Internal Revenue Code, as a fiduciary, agent, or other person
473 that has the control, receipt, custody, or disposal of, or pays the wages of the individual; and
474 (iii) the domestic work is performed under a written contract that notifies the
475 individual that the individual is not an employee under this chapter or Chapter 3; or
476 (e) subject to Subsections (6) and (7), an individual who:
477 (i) (A) owns a motor vehicle; or
478 (B) leases a motor vehicle to a motor carrier;
479 (ii) personally operates the motor vehicle described in Subsection (5)(e)(i);
480 (iii) operates the motor vehicle described in Subsection (5)(e)(i) under a written
481 agreement with the motor carrier that states that the individual operates the motor vehicle as an
482 independent contractor; and
483 (iv) provides to the motor carrier at the time the written agreement described in
484 Subsection (5)(e)(iii) is executed or as soon after the execution as provided by an insurer:
485 (A) a copy of a workers' compensation coverage waiver issued pursuant to Section
486 31A-22-1011 by an insurer to the individual; and
487 (B) proof that the individual is covered by occupational accident related insurance.
488 (6) An individual described in Subsection (5)(d) or (e) may become an employee under
489 this chapter and Chapter 3 if the employer of the individual complies with:
490 (a) this chapter and Chapter 3; and

491 (b) commission rules.
492 (7) For purposes of Subsection (5)(e):
493 (a) "Motor carrier" means a person engaged in the business of transporting freight,
494 merchandise, or other property by a commercial vehicle on a highway within this state.
495 (b) "Motor vehicle" means a self-propelled vehicle intended primarily for use and
496 operation on the highways, including a trailer or semitrailer designed for use with another
497 motorized vehicle.
498 (c) "Occupational accident related insurance" means insurance that provides the
499 following coverage for an injury sustained in the course of working under a written agreement
500 described in Subsection (5)(e)(iii):
501 (i) disability benefits;
502 (ii) death benefits;
503 (iii) medical expense benefits, which include:
504 (A) hospital coverage;
505 (B) surgical coverage;
506 (C) prescription drug coverage; and
507 (D) dental coverage.
508 Section 8. Section 41-1a-422 is amended to read:
509 41-1a-422. Support special group license plates -- Contributor -- Voluntary
510 contribution collection procedures.
511 (1) As used in this section:
512 (a) (i) Except as provided in Subsection (1)(a)(ii), "contributor" means a person who
513 has donated or in whose name at least $25 has been donated to:
514 (A) a scholastic scholarship fund of a single named institution;
515 (B) the Department of Veterans' Affairs for veterans' programs;
516 (C) the Division of Wildlife Resources for the Wildlife Resources Account created in
517 Section 23-14-13 , for conservation of wildlife and the enhancement, preservation, protection,
518 access, and management of wildlife habitat;
519 (D) the Department of Agriculture and Food for the benefit of conservation districts;
520 (E) the Division of Parks and Recreation for the benefit of snowmobile programs;
521 (F) the Guardian Ad Litem Services Account and the Children's Museum of Utah, with

522 the donation evenly divided between the two;
523 (G) the Boy Scouts of America for the benefit of a Utah Boy Scouts of America
524 council as specified by the contributor;
525 (H) No More Homeless Pets in Utah for distribution to organizations or individuals
526 that provide spay and neuter programs that subsidize the sterilization of domestic animals;
527 (I) the Utah Alliance of Boys and Girls Clubs, Inc. to provide and enhance youth
528 development programs;
529 (J) the Utah Association of Public School Foundations to support public education;
530 (K) the Utah Housing Opportunity Restricted Account created in Section [ 61-2-28 ]
531 61-2-204 to assist people who have severe housing needs;
532 (L) the Public Safety Honoring Heroes Restricted Account created in Section 53-1-118
533 to support the families of fallen Utah Highway Patrol troopers and other Department of Public
534 Safety employees;
535 (M) the Division of Parks and Recreation for distribution to organizations that provide
536 support for Zion National Park;
537 (N) the Firefighter Support Restricted Account created in Section 53-7-109 to support
538 firefighter organizations; or
539 (O) the Share the Road Bicycle Support Restricted Account created in Section
540 72-2-127 to support bicycle operation and safety awareness programs.
541 (ii) (A) For a veterans' special group license plate, "contributor" means a person who
542 has donated or in whose name at least a $25 donation at the time of application and $10 annual
543 donation thereafter has been made.
544 (B) For a Utah Housing Opportunity special group license plate, "contributor" means a
545 person who:
546 (I) has donated or in whose name at least $30 has been donated at the time of
547 application and annually after the time of application; and
548 (II) is a member of a trade organization for real estate licensees that has more than
549 15,000 Utah members.
550 (C) For an Honoring Heroes special group license plate, "contributor" means a person
551 who has donated or in whose name at least $35 has been donated at the time of application and
552 annually thereafter.

553 (D) For a firefighter support special group license plate, "contributor" means a person
554 who:
555 (I) has donated or in whose name at least $15 has been donated at the time of
556 application and annually after the time of application; and
557 (II) is a currently employed, volunteer, or retired firefighter.
558 (b) "Institution" means a state institution of higher education as defined under Section
559 53B-3-102 or a private institution of higher education in the state accredited by a regional or
560 national accrediting agency recognized by the United States Department of Education.
561 (2) (a) An applicant for original or renewal collegiate special group license plates under
562 Subsection (1)(a)(i) must be a contributor to the institution named in the application and
563 present the original contribution verification form under Subsection (2)(b) or make a
564 contribution to the division at the time of application under Subsection (3).
565 (b) An institution with a support special group license plate shall issue to a contributor
566 a verification form designed by the commission containing:
567 (i) the name of the contributor;
568 (ii) the institution to which a donation was made;
569 (iii) the date of the donation; and
570 (iv) an attestation that the donation was for a scholastic scholarship.
571 (c) The state auditor may audit each institution to verify that the moneys collected by
572 the institutions from contributors are used for scholastic scholarships.
573 (d) After an applicant has been issued collegiate license plates or renewal decals, the
574 commission shall charge the institution whose plate was issued, a fee determined in accordance
575 with Section 63J-1-504 for management and administrative expenses incurred in issuing and
576 renewing the collegiate license plates.
577 (e) If the contribution is made at the time of application, the contribution shall be
578 collected, treated, and deposited as provided under Subsection (3).
579 (3) (a) An applicant for original or renewal support special group license plates under
580 this section must be a contributor to the sponsoring organization associated with the license
581 plate.
582 (b) This contribution shall be:
583 (i) unless collected by the named institution under Subsection (2), collected by the

584 division;
585 (ii) considered a voluntary contribution for the funding of the activities specified under
586 this section and not a motor vehicle registration fee;
587 (iii) deposited into the appropriate account less actual administrative costs associated
588 with issuing the license plates; and
589 (iv) for a firefighter special group license plate, deposited into the appropriate account
590 less:
591 (A) the costs of reordering firefighter special group license plate decals; and
592 (B) the costs of replacing recognition special group license plates with new license
593 plates under Subsection 41-1a-1211 (13).
594 (c) The donation described in Subsection (1)(a) must be made in the 12 months prior to
595 registration or renewal of registration.
596 (d) The donation described in Subsection (1)(a) shall be a one-time donation made to
597 the division when issuing original:
598 (i) snowmobile license plates; or
599 (ii) conservation license plates.
600 (4) Veterans' license plates shall display one of the symbols representing the Army,
601 Navy, Air Force, Marines, Coast Guard, or American Legion.
602 Section 9. Section 48-2c-1502 is amended to read:
603 48-2c-1502. Definitions.
604 As used in this part:
605 (1) "Professional services company" means a limited liability company organized
606 under this part to render professional services.
607 (2) "Professional services" means the personal services rendered by:
608 (a) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
609 and any subsequent laws regulating the practice of architecture;
610 (b) an attorney granted the authority to practice law by the:
611 (i) Supreme Court of Utah; or
612 (ii) the Supreme Court, other court, agency, instrumentality, or regulating board that
613 licenses or regulates the authority to practice law in any state or territory of the United States
614 other than Utah;

615 (c) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
616 Practice Act, and any subsequent laws regulating the practice of chiropractic;
617 (d) a doctor of dentistry holding a license under Title 58, Chapter 69, [Dentists] Dentist
618 and Dental [Hygienists] Hygienist Practice Act, and any subsequent laws, regulating the
619 practice of dentistry;
620 (e) a professional engineer registered under Title 58, Chapter 22, Professional
621 Engineers and Professional Land Surveyors Licensing Act;
622 (f) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician
623 Practice Act, and any subsequent laws regulating the practice of naturopathy;
624 (g) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
625 Chapter 44a, Nurse Midwife Practice Act;
626 (h) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry
627 Practice Act, and any subsequent laws regulating the practice of optometry;
628 (i) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
629 Utah Osteopathic Medical Practice Act, and any subsequent laws regulating the practice of
630 osteopathy;
631 (j) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice Act,
632 and any subsequent laws regulating the practice of pharmacy;
633 (k) a physician, surgeon, or doctor of medicine holding a license under Title 58,
634 Chapter 67, Utah Medical Practice Act, and any subsequent laws regulating the practice of
635 medicine;
636 (l) a physical therapist holding a license under Title 58, Chapter 24b, Physical Therapy
637 Practice Act, and any subsequent laws regulating the practice of physical therapy;
638 (m) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
639 Physician Licensing Act, and any subsequent laws regulating the practice of podiatry;
640 (n) a psychologist holding a license under Title 58, Chapter 61, Psychologist Licensing
641 Act, and any subsequent laws regulating the practice of psychology;
642 (o) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
643 Accountant Licensing Act, and any subsequent laws regulating the practice of public
644 accounting;
645 (p) a [real estate broker or real estate] principal broker, associate broker, or sales agent

646 holding a license under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing
647 and Practices Act, and any subsequent laws regulating the sale, exchange, purchase, rental, or
648 leasing of real estate;
649 (q) a clinical or certified social worker holding a license under Title 58, Chapter 60,
650 Part 2, Social Worker Licensing Act, and any subsequent laws regulating the practice of social
651 work;
652 (r) a mental health therapist holding a license under Title 58, Chapter 60, Mental
653 Health Professional Practice Act, and any subsequent laws regulating the practice of mental
654 health therapy; [and]
655 (s) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice Act,
656 and any subsequent laws regulating the practice of veterinary medicine[.]; or
657 (t) an individual licensed, certified, or registered under Title 61, Chapter 2b, Real
658 Estate Appraiser Licensing and Certification Act, and any subsequent laws regulating the
659 practice of appraising real estate.
660 (3) "Regulating board" means the board or agency organized pursuant to state law that
661 is charged with the licensing and regulation of the practice of the profession that a company is
662 organized to render.
663 Section 10. Section 57-11-2 is amended to read:
664 57-11-2. Definitions.
665 As used in this chapter:
666 (1) (a) "Disposition" includes sale, lease, assignment, award by lottery, or any other
667 transaction concerning a subdivision, if undertaken for gain or profit.
668 (b) "Disposition" does not include the sale or lease of land held by railroads for right of
669 way if the land is within 400 feet of the center line of a railroad tract.
670 (2) "Division" means the Division of Real Estate created in Section [ 61-2-5 ] 61-2-201 .
671 (3) "Federal act" means the federal Interstate Land Sales Full Disclosure Act, 15
672 U.S.C. Sec. 1701, et seq., or any successor federal act.
673 (4) (a) "Industrial park" means a subdivision or subdivided lands offered as a part of a
674 common promotional plan of advertising and sale zoned for office, manufacturing,
675 warehousing, commercial, industrial, distribution, or wholesale use and utilized for one or
676 more of those purposes.

677 (b) "Industrial park" does not include land offered for sale that is designed or intended
678 to be used for recreational, residential, including multiple family dwellings, or agricultural
679 purposes.
680 (5) "Offer" includes an inducement, solicitation, or attempt to encourage a person to
681 acquire an interest in land if undertaken for gain or profit.
682 (6) "Person" includes:
683 (a) a business trust;
684 (b) an estate;
685 (c) a trust;
686 (d) a partnership;
687 (e) an unincorporated association;
688 (f) two or more of any entity having a joint or common interest; or
689 (g) any other legal or commercial entity.
690 (7) "Purchaser" means a person who acquires or attempts to acquire or succeeds to an
691 interest in land.
692 (8) "Residential building" means a structure intended for occupation as a residence
693 which, at the time of an offer or disposition of the unit on which it is situated, or on which
694 there is a legal obligation on the part of the seller to complete construction of it within two
695 years from date of disposition, has, or if completed would have, ready access to water, gas,
696 electricity, and roads.
697 (9) "Subdivider" means:
698 (a) an owner of an interest in subdivided lands who offers the subdivided lands for
699 disposition; or
700 (b) a principal agent of an owner of an interest in subdivided lands if the owner is
701 inactive.
702 (10) (a) "Subdivision" and "subdivided lands" means land that is divided or is proposed
703 to be divided for the purpose of disposition into 10 or more units including land, whether
704 contiguous or not, if 10 or more units are offered as a part of a common promotional plan of
705 advertising and sale.
706 (b) If a subdivision is offered by a developer or group of developers, and the land is
707 contiguous or is known, designated, or advertised as a common tract or by a common name,

708 that land is presumed, without regard to the number of units covered by each individual
709 offering, to be part of a common promotional plan.
710 (11) "Unit" includes a lot, parcel, or other interest in land separately offered for
711 disposition.
712 Section 11. Section 57-11-14 is amended to read:
713 57-11-14. Revocation, suspension, or denial of registration -- Grounds --
714 Suspension or revocation of real estate license.
715 (1) (a) If the division makes a written finding of fact that a subdivider engages in one
716 or more acts described in Subsection (1)(b), the division may:
717 (i) deny an application for registration;
718 (ii) revoke, suspend, or deny reissuance of a registration; or
719 (iii) impose a civil penalty not to exceed the greater of:
720 (A) $2,500 for each violation; or
721 (B) the amount of any gain or economic benefit derived from each violation.
722 (b) Subsection (1)(a) applies if the division makes a written finding of fact that a
723 subdivider:
724 (i) fails to comply with the terms of a cease and desist order;
725 (ii) is convicted in a court prior or subsequent to the filing of the application for
726 registration of a crime involving:
727 (A) fraud;
728 (B) deception;
729 (C) false pretenses;
730 (D) misrepresentation;
731 (E) false advertising; or
732 (F) dishonest dealing in real estate transactions;
733 (iii) is subject to an injunction or administrative order restraining a false or misleading
734 promotional plan involving land dispositions;
735 (iv) disposes of, conceals, or diverts funds or assets of any person so as to defeat the
736 rights of subdivision purchasers;
737 (v) fails to perform faithfully a stipulation or agreement made with the division as an
738 inducement to:

739 (A) grant a registration;
740 (B) reinstate a registration;
741 (C) revoke a cease and desist order; or
742 (D) approve any promotional plan or public offering statement;
743 (vi) makes an intentional misrepresentation, or conceals a material fact, in an
744 application for registration;
745 (vii) violates this chapter or the rules adopted under this chapter;
746 (viii) directly or through an agent or employee knowingly engages in false, deceptive,
747 or misleading advertising, promotional, or sales methods to offer or dispose of an interest in
748 subdivided lands;
749 (ix) engages in the offering of subdivided lands that has constituted or that may
750 constitute a fraud upon purchasers or prospective purchasers of the subdivided lands; or
751 (x) engages in a dishonest practice in any industry involving sales to consumers.
752 (c) The division shall accompany with a finding of fact required by this Subsection (1)
753 a concise and explicit statement of the underlying facts supporting the finding.
754 (2) As an alternative to revoking the registration of a subdivider, the director may issue
755 a cease and desist order if after notice and a hearing the director finds that the subdivider is
756 guilty of a violation for which revocation may be ordered.
757 (3) (a) The division shall suspend or revoke the license of a [real estate] principal
758 broker, associate broker, or [real estate] sales agent who violates this chapter for the period of
759 time the director determines to be justified under the circumstances.
760 (b) A suspension or revocation under this section is in addition to any other penalty
761 that may be imposed under this chapter, subject to [the provisions of] Section [ 61-2-12 ]
762 61-2f-404 .
763 Section 12. Section 57-19-14 is amended to read:
764 57-19-14. Registration of salesperson.
765 (1) Unless the transaction is exempt under Section 57-19-26 , it is unlawful for any
766 person to act as a salesperson marketing a project in this state without first registering under
767 this chapter as a salesperson.
768 (2) The fee for registration as a salesperson is waived by the division for persons
769 licensed by the division under Title 61, Chapter [2] 2f, Real Estate Licensing and Practices Act.

770 Section 13. Section 57-21-2 is amended to read:
771 57-21-2. Definitions.
772 As used in this chapter:
773 (1) "Aggrieved person" includes any person who:
774 (a) claims to have been injured by a discriminatory housing practice; or
775 (b) believes that the person will be injured by a discriminatory housing practice that is
776 about to occur.
777 (2) "Commission" means the Labor Commission.
778 (3) "Complainant" means an aggrieved person, including the director, who has
779 commenced a complaint with the division.
780 (4) "Conciliation" means the attempted resolution of issues raised by a complaint of
781 discriminatory housing practices by the investigation of the complaint through informal
782 negotiations involving the complainant, the respondent, and the division.
783 (5) "Conciliation agreement" means a written agreement setting forth the resolution of
784 the issues in conciliation.
785 (6) "Conciliation conference" means the attempted resolution of issues raised by a
786 complaint or by the investigation of a complaint through informal negotiations involving the
787 complainant, the respondent, and the division. The conciliation conference is not subject to
788 Title 63G, Chapter 4, Administrative Procedures Act.
789 (7) "Covered multifamily dwellings" means:
790 (a) buildings consisting of four or more dwelling units if the buildings have one or
791 more elevators; and
792 (b) ground floor units in other buildings consisting of four or more dwelling units.
793 (8) "Director" means the director of the division or a designee.
794 (9) (a) "Disability" means a physical or mental impairment that substantially limits one
795 or more of a person's major life activities, including a person having a record of such an
796 impairment or being regarded as having such an impairment.
797 (b) "Disability" does not include current illegal use of, or addiction to, any federally
798 controlled substance, as defined in Section 102 of the Controlled Substances Act, 21 U.S.C.
799 Sec. 802.
800 (10) "Discriminate" includes segregate or separate.

801 (11) "Discriminatory housing practice" means an act that is unlawful under this
802 chapter.
803 (12) "Division" means the Division of Antidiscrimination and Labor established under
804 the commission.
805 (13) (a) "Dwelling" means any building or structure, or a portion of a building or
806 structure, occupied as, or designed or intended for occupancy as, a residence of one or more
807 families.
808 (b) "Dwelling" also includes vacant land that is offered for sale or lease for the
809 construction or location of a dwelling as described in Subsection (13)(a).
810 (14) (a) "Familial status" means one or more individuals who have not attained the age
811 of 18 years being domiciled with:
812 (i) a parent or another person having legal custody of the individual or individuals; or
813 (ii) the designee of the parent or other person having custody, with the written
814 permission of the parent or other person.
815 (b) The protections afforded against discrimination on the basis of familial status shall
816 apply to any person who:
817 (i) is pregnant;
818 (ii) is in the process of securing legal custody of any individual who has not attained
819 the age of 18 years; or
820 (iii) is a single individual.
821 (15) "National origin" means the place of birth of an individual or of any lineal
822 ancestors.
823 (16) "Person" includes one or more individuals, corporations, limited liability
824 companies, partnerships, associations, labor organizations, legal representatives, mutual
825 companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in
826 cases under the United States Bankruptcy Code, receivers, and fiduciaries.
827 (17) "Presiding officer" has the same meaning as provided in Section 63G-4-103 .
828 (18) "Real estate broker" or "salesperson" means a principal [real estate] broker, an
829 associate [real estate] broker, or a [real estate] sales agent as those terms are defined in Section
830 [ 61-2-2 ] 61-2f-102 .
831 (19) "Respondent" means a person against whom a complaint of housing

832 discrimination has been initiated.
833 (20) "Sex" means gender and includes pregnancy, childbirth, and disabilities related to
834 pregnancy or childbirth.
835 (21) "Source of income" means the verifiable condition of being a recipient of federal,
836 state, or local assistance, including medical assistance, or of being a tenant receiving federal,
837 state, or local subsidies, including rental assistance or rent supplements.
838 Section 14. Section 57-23-5 is amended to read:
839 57-23-5. License required.
840 Except as provided by Section [ 61-2-3 ] 61-2f-202 , an individual may not offer, sell, or
841 otherwise dispose of a cooperative interest in this state unless [he] the individual is licensed by
842 the division under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and
843 Practices Act, as a principal [real estate] broker, associate [real estate] broker, or [real estate]
844 sales agent.
845 Section 15. Section 57-27-102 is amended to read:
846 57-27-102. Definitions.
847 As used in this chapter:
848 (1) "Contaminated" or "contamination" is as defined in Section 19-6-902 .
849 (2) "Decontaminated" or "decontamination" is as defined in Section 19-6-902 .
850 (3) (a) "Owner" means the holder of a legal or equitable title or interest in real
851 property.
852 (b) "Owner" includes a shareholder, partner, operator, or other legal entity.
853 (4) "Real estate professional" means a licensee under Title 61, Chapter [2, Division of
854 Real Estate] 2f, Real Estate Licensing and Practices Act.
855 Section 16. Section 58-56-16 is amended to read:
856 58-56-16. Registration of dealers -- Bonding requirements -- Renewal --
857 Exemptions -- Discipline.
858 (1) Each person engaged in the sale of factory built housing in the state, except as
859 provided in Subsection (4), shall register with the division as a dealer.
860 (2) Each applicant for registration under this section shall:
861 (a) submit an application in a form prescribed by the division;
862 (b) pay a fee determined by the department under Section 63J-1-504 ; and

863 (c) provide the division with a registration bond in accordance with rules established
864 by the division.
865 (3) (a) The division shall issue each registration under this section in accordance with a
866 two-year renewal cycle established by rule.
867 (b) The division may by rule extend or shorten a renewal cycle by as much as one year
868 to stagger the renewal cycles it administers.
869 (c) Each registration under this section automatically expires on the expiration date on
870 the certificate of registration unless the registrant renews it in accordance with Section
871 58-1-308 .
872 (4) Subsection (1) does not apply to:
873 (a) a person not regularly engaged in the sale of factory built housing who is selling a
874 unit the person owns for the person's own account;
875 (b) a principal broker licensed under Title 61, Chapter [2, Division of Real Estate] 2f,
876 Real Estate Licensing and Practices Act; or
877 (c) a sales agent or associate broker licensed under Title 61, Chapter [2, Division of
878 Real Estate] 2f, Real Estate Licensing and Practices Act, who sells factory built housing as an
879 agent for, and under the supervision of, the [licensed] principal broker with whom the sales
880 agent or associate broker is affiliated.
881 (5) Grounds for refusing to issue a registration, for refusing to renew a registration, for
882 revoking, suspending, restricting, or placing on probation a registration, for issuing a public or
883 private reprimand to a registrant, and for issuing a cease and desist order shall be in accordance
884 with Section 58-1-401 .
885 Section 17. Section 61-1-13 is amended to read:
886 61-1-13. Definitions.
887 (1) As used in this chapter:
888 (a) "Affiliate" means a person that, directly or indirectly, through one or more
889 intermediaries, controls or is controlled by, or is under common control with a person
890 specified.
891 (b) (i) "Agent" means an individual other than a broker-dealer who represents a
892 broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities.
893 (ii) "Agent" does not include an individual who represents:

894 (A) an issuer, who receives no commission or other remuneration, directly or
895 indirectly, for effecting or attempting to effect purchases or sales of securities in this state, and
896 who effects transactions:
897 (I) in securities exempted by Subsection 61-1-14 (1)(a), (b), (c), or (g);
898 (II) exempted by Subsection 61-1-14 (2);
899 (III) in a covered security as described in Sections 18(b)(3) and 18(b)(4)(D) of the
900 Securities Act of 1933; or
901 (IV) with existing employees, partners, officers, or directors of the issuer; or
902 (B) a broker-dealer in effecting transactions in this state limited to those transactions
903 described in Section 15(h)(2) of the Securities Exchange Act of 1934.
904 (iii) A partner, officer, or director of a broker-dealer or issuer, or a person occupying a
905 similar status or performing similar functions, is an agent only if the partner, officer, director,
906 or person otherwise comes within the definition of "agent."
907 (iv) "Agent" does not include a person described in Subsection (3).
908 (c) (i) "Broker-dealer" means a person engaged in the business of effecting transactions
909 in securities for the account of others or for the person's own account.
910 (ii) "Broker-dealer" does not include:
911 (A) an agent;
912 (B) an issuer;
913 (C) a depository institution or trust company;
914 (D) a person who has no place of business in this state if:
915 (I) the person effects transactions in this state exclusively with or through:
916 (Aa) the issuers of the securities involved in the transactions;
917 (Bb) other broker-dealers;
918 (Cc) a depository institution, whether acting for itself or as a trustee;
919 (Dd) a trust company, whether acting for itself or as a trustee;
920 (Ee) an insurance company, whether acting for itself or as a trustee;
921 (Ff) an investment company, as defined in the Investment Company Act of 1940,
922 whether acting for itself or as a trustee;
923 (Gg) a pension or profit-sharing trust, whether acting for itself or as a trustee; or
924 (Hh) another financial institution or institutional buyer, whether acting for itself or as a

925 trustee; or
926 (II) during any period of 12 consecutive months the person does not direct more than
927 15 offers to sell or buy into this state in any manner to persons other than those specified in
928 Subsection (1)(c)(ii)(D)(I), whether or not the offeror or an offeree is then present in this state;
929 (E) a general partner who organizes and effects transactions in securities of three or
930 fewer limited partnerships, of which the person is the general partner, in any period of 12
931 consecutive months;
932 (F) a person whose participation in transactions in securities is confined to those
933 transactions made by or through a broker-dealer licensed in this state;
934 (G) a person who is a [real estate] principal broker or associate broker licensed in this
935 state and who effects transactions in a bond or other evidence of indebtedness secured by a real
936 or chattel mortgage or deed of trust, or by an agreement for the sale of real estate or chattels, if
937 the entire mortgage, deed [or] of trust, or agreement, together with all the bonds or other
938 evidences of indebtedness secured thereby, is offered and sold as a unit;
939 (H) a person effecting transactions in commodity contracts or commodity options;
940 (I) a person described in Subsection (3); or
941 (J) other persons as the division, by rule or order, may designate, consistent with the
942 public interest and protection of investors, as not within the intent of this Subsection (1)(c).
943 (d) "Buy" or "purchase" means a contract for purchase of, contract to buy, or
944 acquisition of a security or interest in a security for value.
945 (e) "Commission" means the Securities Commission created in Section 61-1-18.5 .
946 (f) "Commodity" means, except as otherwise specified by the division by rule:
947 (i) an agricultural, grain, or livestock product or byproduct, except real property or a
948 timber, agricultural, or livestock product grown or raised on real property and offered or sold
949 by the owner or lessee of the real property;
950 (ii) a metal or mineral, including a precious metal, except a numismatic coin whose fair
951 market value is at least 15% greater than the value of the metal it contains;
952 (iii) a gem or gemstone, whether characterized as precious, semi-precious, or
953 otherwise;
954 (iv) a fuel, whether liquid, gaseous, or otherwise;
955 (v) a foreign currency; and

956 (vi) all other goods, articles, products, or items of any kind, except a work of art
957 offered or sold by art dealers, at public auction or offered or sold through a private sale by the
958 owner of the work.
959 (g) (i) "Commodity contract" means an account, agreement, or contract for the
960 purchase or sale, primarily for speculation or investment purposes and not for use or
961 consumption by the offeree or purchaser, of one or more commodities, whether for immediate
962 or subsequent delivery or whether delivery is intended by the parties, and whether characterized
963 as a cash contract, deferred shipment or deferred delivery contract, forward contract, futures
964 contract, installment or margin contract, leverage contract, or otherwise.
965 (ii) A commodity contract offered or sold shall, in the absence of evidence to the
966 contrary, be presumed to be offered or sold for speculation or investment purposes.
967 (iii) (A) A commodity contract may not include a contract or agreement that requires,
968 and under which the purchaser receives, within 28 calendar days from the payment in good
969 funds any portion of the purchase price, physical delivery of the total amount of each
970 commodity to be purchased under the contract or agreement.
971 (B) A purchaser is not considered to have received physical delivery of the total
972 amount of each commodity to be purchased under the contract or agreement when the
973 commodity or commodities are held as collateral for a loan or are subject to a lien of any
974 person when the loan or lien arises in connection with the purchase of each commodity or
975 commodities.
976 (h) (i) "Commodity option" means an account, agreement, or contract giving a party to
977 the option the right but not the obligation to purchase or sell one or more commodities or one
978 or more commodity contracts, or both whether characterized as an option, privilege, indemnity,
979 bid, offer, put, call, advance guaranty, decline guaranty, or otherwise.
980 (ii) "Commodity option" does not include an option traded on a national securities
981 exchange registered:
982 (A) with the Securities and Exchange Commission; or
983 (B) on a board of trade designated as a contract market by the Commodity Futures
984 Trading Commission.
985 (i) "Depository institution" is as defined in Section 7-1-103 .
986 (j) "Director" means the director of the division appointed in accordance with Section

987 61-1-18 .
988 (k) "Division" means the Division of Securities established by Section 61-1-18 .
989 (l) "Executive director" means the executive director of the Department of Commerce.
990 (m) "Federal covered adviser" means a person who:
991 (i) is registered under Section 203 of the Investment Advisers Act of 1940; or
992 (ii) is excluded from the definition of "investment adviser" under Section 202(a)(11) of
993 the Investment Advisers Act of 1940.
994 (n) "Federal covered security" means a security that is a covered security under Section
995 18(b) of the Securities Act of 1933 or rules or regulations promulgated under Section 18(b) of
996 the Securities Act of 1933.
997 (o) "Fraud," "deceit," and "defraud" are not limited to their common-law meanings.
998 (p) "Guaranteed" means guaranteed as to payment of principal or interest as to debt
999 securities, or dividends as to equity securities.
1000 (q) (i) "Investment adviser" means a person who:
1001 (A) for compensation, engages in the business of advising others, either directly or
1002 through publications or writings, as to the value of securities or as to the advisability of
1003 investing in, purchasing, or selling securities; or
1004 (B) for compensation and as a part of a regular business, issues or promulgates
1005 analyses or reports concerning securities.
1006 (ii) "Investment adviser" includes a financial planner or other person who:
1007 (A) as an integral component of other financially related services, provides the
1008 investment advisory services described in Subsection (1)(q)(i) to others for compensation and
1009 as part of a business; or
1010 (B) holds the person out as providing the investment advisory services described in
1011 Subsection (1)(q)(i) to others for compensation.
1012 (iii) "Investment adviser" does not include:
1013 (A) an investment adviser representative;
1014 (B) a depository institution or trust company;
1015 (C) a lawyer, accountant, engineer, or teacher whose performance of these services is
1016 solely incidental to the practice of the profession;
1017 (D) a broker-dealer or its agent whose performance of these services is solely

1018 incidental to the conduct of its business as a broker-dealer and who receives no special
1019 compensation for the services;
1020 (E) a publisher of a bona fide newspaper, news column, news letter, news magazine, or
1021 business or financial publication or service, of general, regular, and paid circulation, whether
1022 communicated in hard copy form, or by electronic means, or otherwise, that does not consist of
1023 the rendering of advice on the basis of the specific investment situation of each client;
1024 (F) a person who is a federal covered adviser;
1025 (G) a person described in Subsection (3); or
1026 (H) such other persons not within the intent of this Subsection (1)(q) as the division
1027 may by rule or order designate.
1028 (r) (i) "Investment adviser representative" means a partner, officer, director of, or a
1029 person occupying a similar status or performing similar functions, or other individual, except
1030 clerical or ministerial personnel, who:
1031 (A) (I) is employed by or associated with an investment adviser who is licensed or
1032 required to be licensed under this chapter; or
1033 (II) has a place of business located in this state and is employed by or associated with a
1034 federal covered adviser; and
1035 (B) does any of the following:
1036 (I) makes a recommendation or otherwise renders advice regarding securities;
1037 (II) manages accounts or portfolios of clients;
1038 (III) determines which recommendation or advice regarding securities should be given;
1039 (IV) solicits, offers, or negotiates for the sale of or sells investment advisory services;
1040 or
1041 (V) supervises employees who perform any of the acts described in this Subsection
1042 (1)(r)(i)(B).
1043 (ii) "Investment adviser representative" does not include a person described in
1044 Subsection (3).
1045 (s) "Investment contract" includes:
1046 (i) an investment in a common enterprise with the expectation of profit to be derived
1047 through the essential managerial efforts of someone other than the investor; or
1048 (ii) an investment by which:

1049 (A) an offeree furnishes initial value to an offerer;
1050 (B) a portion of the initial value is subjected to the risks of the enterprise;
1051 (C) the furnishing of the initial value is induced by the offerer's promises or
1052 representations that give rise to a reasonable understanding that a valuable benefit of some kind
1053 over and above the initial value will accrue to the offeree as a result of the operation of the
1054 enterprise; and
1055 (D) the offeree does not receive the right to exercise practical or actual control over the
1056 managerial decisions of the enterprise.
1057 (t) "Isolated transaction" means not more than a total of two transactions that occur
1058 anywhere during six consecutive months.
1059 (u) (i) "Issuer" means a person who issues or proposes to issue a security or has
1060 outstanding a security that it has issued.
1061 (ii) With respect to a preorganization certificate or subscription, "issuer" means the one
1062 or more promoters of the person to be organized.
1063 (iii) "Issuer" means the one or more persons performing the acts and assuming duties
1064 of a depositor or manager under the provisions of the trust or other agreement or instrument
1065 under which the security is issued with respect to:
1066 (A) interests in trusts, including collateral trust certificates, voting trust certificates, and
1067 certificates of deposit for securities; or
1068 (B) shares in an investment company without a board of directors.
1069 (iv) With respect to an equipment trust certificate, a conditional sales contract, or
1070 similar securities serving the same purpose, "issuer" means the person by whom the equipment
1071 or property is to be used.
1072 (v) With respect to interests in partnerships, general or limited, "issuer" means the
1073 partnership itself and not the general partner or partners.
1074 (vi) With respect to certificates of interest or participation in oil, gas, or mining titles or
1075 leases or in payment out of production under the titles or leases, "issuer" means the owner of
1076 the title or lease or right of production, whether whole or fractional, who creates fractional
1077 interests therein for the purpose of sale.
1078 (v) (i) "Life settlement interest" means the entire interest or a fractional interest in any
1079 of the following that is the subject of a life settlement:

1080 (A) a policy; or
1081 (B) the death benefit under a policy.
1082 (ii) "Life settlement interest" does not include the initial purchase from the owner by a
1083 life settlement provider.
1084 (w) "Nonissuer" means not directly or indirectly for the benefit of the issuer.
1085 (x) "Person" means:
1086 (i) an individual;
1087 (ii) a corporation;
1088 (iii) a partnership;
1089 (iv) a limited liability company;
1090 (v) an association;
1091 (vi) a joint-stock company;
1092 (vii) a joint venture;
1093 (viii) a trust where the interests of the beneficiaries are evidenced by a security;
1094 (ix) an unincorporated organization;
1095 (x) a government; or
1096 (xi) a political subdivision of a government.
1097 (y) "Precious metal" means the following, whether in coin, bullion, or other form:
1098 (i) silver;
1099 (ii) gold;
1100 (iii) platinum;
1101 (iv) palladium;
1102 (v) copper; and
1103 (vi) such other substances as the division may specify by rule.
1104 (z) "Promoter" means a person who, acting alone or in concert with one or more
1105 persons, takes initiative in founding or organizing the business or enterprise of a person.
1106 (aa) (i) Except as provided in Subsection (1)(aa)(ii), "record" means information that
1107 is:
1108 (A) inscribed in a tangible medium; or
1109 (B) (I) stored in an electronic or other medium; and
1110 (II) retrievable in perceivable form.

1111 (ii) This Subsection (1)(aa) does not apply when the context requires otherwise,
1112 including when "record" is used in the following phrases:
1113 (A) "of record";
1114 (B) "official record"; or
1115 (C) "public record."
1116 (bb) (i) "Sale" or "sell" includes a contract for sale of, contract to sell, or disposition of,
1117 a security or interest in a security for value.
1118 (ii) "Offer" or "offer to sell" includes an attempt or offer to dispose of, or solicitation of
1119 an offer to buy, a security or interest in a security for value.
1120 (iii) The following are examples of the definitions in Subsection (1)(bb)(i) or (ii):
1121 (A) a security given or delivered with or as a bonus on account of a purchase of a
1122 security or any other thing, is part of the subject of the purchase, and is offered and sold for
1123 value;
1124 (B) a purported gift of assessable stock is an offer or sale as is each assessment levied
1125 on the stock;
1126 (C) an offer or sale of a security that is convertible into, or entitles its holder to acquire
1127 or subscribe to another security of the same or another issuer is an offer or sale of that security,
1128 and also an offer of the other security, whether the right to convert or acquire is exercisable
1129 immediately or in the future;
1130 (D) a conversion or exchange of one security for another constitutes an offer or sale of
1131 the security received in a conversion or exchange, and the offer to buy or the purchase of the
1132 security converted or exchanged;
1133 (E) securities distributed as a dividend wherein the person receiving the dividend
1134 surrenders the right, or the alternative right, to receive a cash or property dividend is an offer or
1135 sale;
1136 (F) a dividend of a security of another issuer is an offer or sale; or
1137 (G) the issuance of a security under a merger, consolidation, reorganization,
1138 recapitalization, reclassification, or acquisition of assets constitutes the offer or sale of the
1139 security issued as well as the offer to buy or the purchase of a security surrendered in
1140 connection therewith, unless the sole purpose of the transaction is to change the issuer's
1141 domicile.

1142 (iv) The terms defined in Subsections (1)(bb)(i) and (ii) do not include:
1143 (A) a good faith gift;
1144 (B) a transfer by death;
1145 (C) a transfer by termination of a trust or of a beneficial interest in a trust;
1146 (D) a security dividend not within Subsection (1)(bb)(iii)(E) or (F); or
1147 (E) a securities split or reverse split.
1148 (cc) "Securities Act of 1933," "Securities Exchange Act of 1934," and "Investment
1149 Company Act of 1940" mean the federal statutes of those names as amended before or after the
1150 effective date of this chapter.
1151 (dd) "Securities Exchange Commission" means the United States Securities Exchange
1152 Commission created by the Securities Exchange Act of 1934.
1153 (ee) (i) "Security" means a:
1154 (A) note;
1155 (B) stock;
1156 (C) treasury stock;
1157 (D) bond;
1158 (E) debenture;
1159 (F) evidence of indebtedness;
1160 (G) certificate of interest or participation in a profit-sharing agreement;
1161 (H) collateral-trust certificate;
1162 (I) preorganization certificate or subscription;
1163 (J) transferable share;
1164 (K) investment contract;
1165 (L) burial certificate or burial contract;
1166 (M) voting-trust certificate;
1167 (N) certificate of deposit for a security;
1168 (O) certificate of interest or participation in an oil, gas, or mining title or lease or in
1169 payments out of production under such a title or lease;
1170 (P) commodity contract or commodity option;
1171 (Q) interest in a limited liability company;
1172 (R) life settlement interest; or

1173 (S) in general, an interest or instrument commonly known as a "security," or a
1174 certificate of interest or participation in, temporary or interim certificate for, receipt for,
1175 guarantee of, or warrant or right to subscribe to or purchase an item listed in Subsections
1176 (1)(ee)(i)(A) through (R).
1177 (ii) "Security" does not include:
1178 (A) an insurance or endowment policy or annuity contract under which an insurance
1179 company promises to pay money in a lump sum or periodically for life or some other specified
1180 period;
1181 (B) an interest in a limited liability company in which the limited liability company is
1182 formed as part of an estate plan where all of the members are related by blood or marriage, or
1183 the person claiming this exception can prove that all of the members are actively engaged in the
1184 management of the limited liability company; or
1185 (C) (I) a whole long-term estate in real property;
1186 (II) an undivided fractionalized long-term estate in real property that consists of 10 or
1187 fewer owners; or
1188 (III) an undivided fractionalized long-term estate in real property that consists of more
1189 than 10 owners if, when the real property estate is subject to a management agreement:
1190 (Aa) the management agreement permits a simple majority of owners of the real
1191 property estate to not renew or to terminate the management agreement at the earlier of the end
1192 of the management agreement's current term, or 180 days after the day on which the owners
1193 give notice of termination to the manager;
1194 (Bb) the management agreement prohibits, directly or indirectly, the lending of the
1195 proceeds earned from the real property estate or the use or pledge of its assets to a person or
1196 entity affiliated with or under common control of the manager; and
1197 (Cc) the management agreement complies with any other requirement imposed by rule
1198 by the Real Estate Commission under Section [ 61-2-26 ] 61-2f-103 .
1199 (iii) For purposes of Subsection (1)(ee)(ii)(B), evidence that members vote or have the
1200 right to vote, or the right to information concerning the business and affairs of the limited
1201 liability company, or the right to participate in management, may not establish, without more,
1202 that all members are actively engaged in the management of the limited liability company.
1203 (ff) "State" means a state, territory, or possession of the United States, the District of

1204 Columbia, and Puerto Rico.
1205 (gg) (i) "Undivided fractionalized long-term estate" means an ownership interest in real
1206 property by two or more persons that is a:
1207 (A) tenancy in common; or
1208 (B) any other legal form of undivided estate in real property including:
1209 (I) a fee estate;
1210 (II) a life estate; or
1211 (III) other long-term estate.
1212 (ii) "Undivided fractionalized long-term estate" does not include a joint tenancy.
1213 (hh) "Whole long-term estate" means a person owns or persons through joint tenancy
1214 own real property through:
1215 (i) a fee estate;
1216 (ii) a life estate; or
1217 (iii) other long-term estate.
1218 (ii) "Working days" means 8 a.m. to 5 p.m., Monday through Friday, exclusive of legal
1219 holidays listed in Section 63G-1-301 .
1220 (2) A term not defined in this section shall have the meaning as established by division
1221 rule. The meaning of a term neither defined in this section nor by rule of the division shall be
1222 the meaning commonly accepted in the business community.
1223 (3) (a) This Subsection (3) applies to:
1224 (i) the offer or sale of a real property estate exempted from the definition of security
1225 under Subsection (1)(ee)(ii)(C); or
1226 (ii) the offer or sale of an undivided fractionalized long-term estate that is the offer of a
1227 security.
1228 (b) A person who, directly or indirectly receives compensation in connection with the
1229 offer or sale as provided in this Subsection (3) of a real property estate is not an agent,
1230 broker-dealer, investment adviser, or investment adviser representative under this chapter if
1231 that person is licensed under Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and
1232 Practices Act, as:
1233 (i) a principal [real estate] broker;
1234 (ii) an associate [real estate] broker; or

1235 (iii) a [real estate] sales agent.
1236 (4) The list of real property estates excluded from the definition of securities under
1237 Subsection (1)(ee)(ii)(C) is not an exclusive list of real property estates or interests that are not
1238 a security.
1239 Section 18. Section 61-2-101 is enacted to read:
1240 CHAPTER 2. DIVISION OF REAL ESTATE
1241 Part 1. General Provisions
1242 61-2-101. Title.
1243 This chapter is known as the "Division of Real Estate."
1244 Section 19. Section 61-2-102 is enacted to read:
1245 61-2-102. Definitions.
1246 As used in this chapter:
1247 (1) "Department" means the Department of Commerce.
1248 (2) "Director" means the director of the division appointed under Section 61-2-201 .
1249 (3) "Division" means the Division of Real Estate created in Section 61-2-201 .
1250 (4) "Executive director" means the executive director of the department appointed
1251 under Section 13-1-3 .
1252 Section 20. Section 61-2-201 , which is renumbered from Section 61-2-5 is renumbered
1253 and amended to read:
1254 Part 2. Organization
1255 [61-2-5]. 61-2-201. Division of Real Estate created -- Director appointed --
1256 Personnel.
1257 (1) There is created within the [Department of Commerce] department a Division of
1258 Real Estate. [It] The division is responsible for the administration and enforcement of:
1259 (a) this chapter;
1260 (b) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act;
1261 (c) Title 57, Chapter 19, Timeshare and Camp Resort Act;
1262 (d) Title 57, Chapter 23, Real Estate Cooperative Marketing Act;
1263 [(e) Chapter 2a, Real Estate Recovery Fund Act;]
1264 [(f)] (e) Chapter 2b, Real Estate Appraiser Licensing and Certification Act;
1265 [(g)] (f) Chapter 2c, Utah Residential Mortgage Practices and Licensing Act; [and]

1266 [(h)] (g) Chapter 2e, Appraisal Management Company Registration and Regulation
1267 Act[.]; and
1268 (h) Chapter 2f, Real Estate Licensing and Practices Act.
1269 (2) The division is under the direction and control of a director appointed by the
1270 executive director of the department with the approval of the governor. The director holds the
1271 office of director at the pleasure of the governor.
1272 (3) The director, with the approval of the executive director, may employ personnel
1273 necessary to discharge the duties of the division at salaries to be fixed by the director according
1274 to standards established by the Department of Administrative Services.
1275 [(4) On or before October 1 of each year, the director shall, in conjunction with the
1276 department, report to the governor and the Legislature concerning the division's work for the
1277 preceding fiscal year ending June 30.]
1278 [(5) The director, in conjunction with the executive director, shall prepare and submit
1279 to the governor and the Legislature a budget for the fiscal year next following the convening of
1280 the Legislature.]
1281 Section 21. Section 61-2-202 is enacted to read:
1282 61-2-202. Powers and duties of the director or division.
1283 (1) On or before October 1 of each year, in conjunction with the department, the
1284 director shall report to the governor and the Legislature concerning the division's work for the
1285 fiscal year immediately preceding the report.
1286 (2) In conjunction with the executive director, the director shall prepare and submit to
1287 the governor and the Legislature a budget for the fiscal year that follows the convening of the
1288 Legislature.
1289 Section 22. Section 61-2-203 , which is renumbered from Section 61-2-5.1 is
1290 renumbered and amended to read:
1291 [61-2-5.1]. 61-2-203. Adjudicative proceedings.
1292 The [Division of Real Estate] division shall comply with [the procedures and
1293 requirements of] Title 63G, Chapter 4, Administrative Procedures Act, in [its] an adjudicative
1294 [proceedings] proceeding under a chapter the division administers.
1295 Section 23. Section 61-2-204 , which is renumbered from Section 61-2-28 is
1296 renumbered and amended to read:

1297 [61-2-28]. 61-2-204. Utah Housing Opportunity Restricted Account.
1298 (1) For purposes of this section, "account" means the Utah Housing Opportunity
1299 Restricted Account created by this section.
1300 [(1)] (2) There is created in the General Fund a restricted account known as the "Utah
1301 Housing Opportunity Restricted Account."
1302 [(2)] (3) The account shall be funded by:
1303 (a) contributions deposited into the [Utah Housing Opportunity Restricted Account]
1304 account in accordance with Section 41-1a-422 ;
1305 (b) private contributions; and
1306 (c) donations or grants from public or private entities.
1307 [(3) Funds] (4) Money in the account [are] is nonlapsing.
1308 [(4)] (5) (a) The state treasurer shall invest [monies] money in the account according to
1309 Title 51, Chapter 7, State Money Management Act.
1310 (b) The Division of Finance shall deposit interest or other earnings derived from
1311 investment of account [monies] money into the General Fund.
1312 [(5)] (6) The Legislature shall appropriate money in the account to the division.
1313 [(6)] (7) The division shall distribute the [funds] money in the account to one or more
1314 charitable organizations that:
1315 (a) [qualify as being] are tax exempt under Section 501(c)(3), Internal Revenue Code;
1316 and
1317 (b) have as a primary part of their mission to provide support to organizations that
1318 create affordable housing for those in severe need.
1319 [(7)] (8) The division may [only consider proposals that are] consider a proposal only if
1320 it is:
1321 (a) proposed by an organization [under] described in Subsection [(6)] (7); and
1322 (b) designed to provide support to organizations that create affordable housing for
1323 those in severe need.
1324 [(8)] (9) (a) An organization described in Subsection [(6)] (7) may apply to the division
1325 to receive a distribution in accordance with Subsection [(6)] (7).
1326 (b) An organization that receives a distribution from the division in accordance with
1327 Subsection [(6)] (7) shall expend the distribution only to provide support to organizations that

1328 create affordable housing for those in severe need.
1329 [(9)] (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
1330 Act, the division shall make rules providing procedures for an organization to apply to receive
1331 [funds] money under this section.
1332 Section 24. Section 61-2b-2 is amended to read:
1333 61-2b-2. Definitions.
1334 (1) As used in this chapter:
1335 (a) (i) "Appraisal" means an unbiased analysis, opinion, or conclusion relating to the
1336 nature, quality, value, or utility of a specified interest in, or aspect of, identified real estate or
1337 identified real property.
1338 (ii) An appraisal is classified by the nature of the assignment as a valuation appraisal,
1339 an analysis assignment, or a review assignment in accordance with the following definitions:
1340 (A) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that
1341 relates to the nature, quality, or utility of identified real estate or identified real property.
1342 (B) "Review assignment" means an unbiased analysis, opinion, or conclusion that
1343 forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis
1344 assignment.
1345 (C) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
1346 estimates the value of an identified parcel of real estate or identified real property at a particular
1347 point in time.
1348 (b) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as
1349 an Illinois not-for-profit corporation on November 30, 1987.
1350 (c) (i) "Appraisal report" means a communication, written or oral, of an appraisal.
1351 (ii) An appraisal report is classified by the nature of the assignment as a valuation
1352 report, analysis report, or review report in accordance with the definitions provided in
1353 Subsection (1)(a)(ii).
1354 (iii) The testimony of a person relating to the person's analyses, conclusions, or
1355 opinions concerning identified real estate or identified real property is considered to be an oral
1356 appraisal report.
1357 (d) "Appraisal Qualification Board" means the Appraisal Qualification Board of the
1358 Appraisal Foundation.

1359 [(d)] (e) "Board" means the Real Estate Appraiser Licensing and Certification Board
1360 that is established in Section 61-2b-7 .
1361 [(e)] (f) "Certified appraisal report" means a written or oral appraisal report that is
1362 certified by a state-certified general appraiser or state-certified residential appraiser.
1363 (g) "Concurrence" means that the entities that are given a concurring role jointly agree
1364 to an action.
1365 [(f)] (h) (i) (A) "Consultation service" means an engagement to provide a real estate
1366 valuation service analysis, opinion, conclusion, or other service that does not fall within the
1367 definition of appraisal.
1368 (B) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
1369 review assignment.
1370 (ii) Regardless of the intention of the client or employer, if a person prepares an
1371 unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
1372 be an appraisal and not a consultation service.
1373 [(g)] (i) "Contingent fee" means a fee or other form of compensation, payment of
1374 which is dependent on or conditioned by:
1375 (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
1376 performing the analysis, opinion, or conclusion; or
1377 (ii) achieving a result specified by the person requesting the analysis, opinion, or
1378 conclusion.
1379 [(h)] (j) "Division" means the Division of Real Estate of the Department of Commerce.
1380 [(i)] (k) "Federally related transaction" means a real estate related transaction that is
1381 required by federal law or by federal regulation to be supported by an appraisal prepared by:
1382 (i) a state-licensed appraiser; or
1383 (ii) a state-certified appraiser.
1384 [(j)] (l) "Real estate" means an identified parcel or tract of land including
1385 improvements if any.
1386 [(k)] (m) "Real estate appraisal activity" means the act or process of making an
1387 appraisal of real estate or real property and preparing an appraisal report.
1388 [(l)] (n) "Real estate related transaction" means:
1389 (i) the sale, lease, purchase, investment in, or exchange of real property or an interest in

1390 real property, or the financing of such a transaction;
1391 (ii) the refinancing of real property or an interest in real property; or
1392 (iii) the use of real property or an interest in real property as security for a loan or
1393 investment, including mortgage-backed securities.
1394 [(m)] (o) "Real property" means one or more defined interests, benefits, or rights
1395 inherent in the ownership of real estate.
1396 [(n)] (p) "State-certified general appraiser" means a person who holds a current, valid
1397 certification as a state-certified general appraiser issued under this chapter.
1398 [(o)] (q) "State-certified residential appraiser" means a person who holds a current,
1399 valid certification as a state-certified residential real estate appraiser issued under this chapter.
1400 [(p)] (r) "State-licensed appraiser" means a person who holds a current, valid license as
1401 a state-licensed appraiser issued under this chapter.
1402 [(q)] (s) "Trainee" means an individual who:
1403 (i) does not hold an appraiser license or appraiser certification issued under this
1404 chapter;
1405 (ii) works under the direct supervision of a state-certified appraiser to earn experience
1406 for licensure; and
1407 (iii) is registered as a trainee under this chapter.
1408 [(r)] (t) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
1409 conclusion relating to the nature, quality, value, or utility of identified real estate or identified
1410 real property that is prepared by a person who is employed or retained to act, or would be
1411 perceived by third parties or the public as acting, as a disinterested third party in rendering the
1412 analysis, opinion, or conclusion.
1413 (2) (a) If a term not defined in this section is defined by rule, the term shall have the
1414 meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
1415 Utah Administrative Rulemaking Act.
1416 (b) If a term not defined in this section is not defined by rule, the term shall have the
1417 meaning commonly accepted in the business community.
1418 Section 25. Section 61-2b-3 is amended to read:
1419 61-2b-3. License or certification required.
1420 (1) Except as provided in Subsection (2) and in Subsection 61-2b-6 (2), it is unlawful

1421 for [anyone] a person to prepare, for valuable consideration, an appraisal, an appraisal report, a
1422 certified appraisal report, or perform a consultation service relating to real estate or real
1423 property in this state without first being licensed or certified in accordance with this chapter.
1424 (2) This section does not apply to:
1425 (a) a [real estate broker] principal broker, associate broker, or sales agent as defined by
1426 Section [ 61-2-2 ] 61-2f-102 licensed by this state who, in the ordinary course of the [real estate]
1427 broker's or sales agent's business, gives an opinion:
1428 (i) regarding the value of real estate;
1429 (ii) to a potential seller or third party recommending a listing price of real estate; or
1430 (iii) to a potential buyer or third party recommending a purchase price of real estate;
1431 (b) an employee of a company who states an opinion of value or prepares a report
1432 containing value conclusions relating to real estate or real property solely for the company's
1433 use;
1434 (c) [any] an official or employee of a government agency while acting solely within the
1435 scope of the official's or employee's duties, unless otherwise required by Utah law;
1436 (d) an auditor or accountant who states an opinion of value or prepares a report
1437 containing value conclusions relating to real estate or real property while performing an audit;
1438 (e) an individual, except an individual who is required to be licensed or certified under
1439 this chapter, who states an opinion about the value of property in which the person has an
1440 ownership interest;
1441 (f) an individual who states an opinion of value if no consideration is paid or agreed to
1442 be paid for the opinion and no other party is reasonably expected to rely on the individual's
1443 appraisal expertise;
1444 (g) an individual, such as a researcher or a secretary, who does not render significant
1445 professional assistance, as defined by the board, in arriving at a real estate appraisal analysis,
1446 opinion, or conclusion; or
1447 (h) an attorney authorized to practice law in this state who, in the course of the
1448 attorney's practice, uses an appraisal report governed by this chapter or who states an opinion
1449 of the value of real estate.
1450 (3) An opinion of value or report containing value conclusions exempt under
1451 Subsection (2) may not be referred to as an appraisal.

1452 Section 26. Section 61-2b-6 is amended to read:
1453 61-2b-6. Duties and powers of division.
1454 (1) The division has the powers and duties listed in this Subsection (1).
1455 (a) The division shall:
1456 (i) receive an application for licensing, certification, or registration;
1457 (ii) establish appropriate administrative procedures for the processing of an application
1458 for licensure, certification, or registration;
1459 (iii) issue a license or certification to a qualified applicant pursuant to this chapter; and
1460 (iv) register an individual who applies and qualifies for registration as a trainee under
1461 this chapter.
1462 (b) (i) The division shall require an individual to register with the division as a trainee
1463 [with the division] before the individual acts in the capacity of a trainee earning experience for
1464 licensure.
1465 (ii) Subject to Subsection (4), the board shall adopt rules in accordance with Title 63G,
1466 Chapter 3, Utah Administrative Rulemaking Act, for:
1467 (A) the trainee registration required by this Subsection (1)(b); and
1468 (B) renewal of the trainee registration required by this Subsection (1)(b).
1469 (c) The division shall hold public hearings under the direction of the board.
1470 (d) The division may:
1471 (i) solicit bids and enter into contracts with one or more educational testing services or
1472 organizations for the preparation of a bank of questions and answers [approved by the board for
1473 licensing and certification examinations]; and
1474 (ii) administer or contract for the administration of licensing and certification
1475 examinations as may be required to carry out the division's responsibilities under this chapter.
1476 (e) The division shall provide administrative assistance to the board by providing to the
1477 board the facilities, equipment, supplies, and personnel that are required to enable the board to
1478 carry out the board's responsibilities under this chapter.
1479 [(f) The division shall assist the board in upgrading and improving the quality of the
1480 education and examinations required under this chapter.]
1481 [(g)] (f) The division shall assist the board in improving the quality of the continuing
1482 education available to a person licensed [and], certified, or registered under this chapter.

1483 [(h)] (g) The division shall assist the board with respect to the proper interpretation or
1484 explanation of the Uniform Standards of Professional Appraisal Practice as required by Section
1485 61-2b-27 when an interpretation or explanation becomes necessary in the enforcement of this
1486 chapter.
1487 [(i)] (h) The division shall establish fees in accordance with Section 63J-1-504 :
1488 (i) for processing:
1489 [(A) a trainee registration;]
1490 [(B)] (A) an application for licensing [and], certification, or registration; and
1491 [(C)] (B) approval of an expert witness; and
1492 (ii) for [all other functions] any other function required or permitted by this chapter.
1493 (i) If a person pays a fee or costs to the division with a negotiable instrument and the
1494 negotiable instrument is not honored for payment:
1495 (i) the transaction for which the payment is submitted is voidable by the division;
1496 (ii) the division may reverse the transaction if payment of the applicable fee or costs is
1497 not received in full; and
1498 (iii) the person's license, certification, or registration is automatically suspended:
1499 (A) beginning the day on which the payment is due; and
1500 (B) ending the day on which payment is made in full.
1501 (j) The division may:
1502 (i) investigate a complaint against:
1503 [(A) a trainee;]
1504 [(B)] (A) a person licensed [or], certified, or registered under this chapter; or
1505 [(C)] (B) a person required to be licensed, certified, or registered under this chapter;
1506 (ii) subpoena a witness;
1507 (iii) subpoena the production of a book, paper, document, record, [or other paper]
1508 contract, or evidence;
1509 (iv) administer an oath; and
1510 (v) take testimony and receive evidence concerning a matter within the division's
1511 jurisdiction.
1512 (k) The division may:
1513 (i) promote research and conduct studies relating to the profession of real estate

1514 appraising; and
1515 (ii) sponsor real estate appraisal educational activities.
1516 (l) The division shall adopt, with the concurrence of the board, rules for the
1517 administration of this chapter pursuant to Title 63G, Chapter 3, Utah Administrative
1518 Rulemaking Act, that are not inconsistent with this chapter or the constitution and laws of this
1519 state or of the United States.
1520 (m) The division shall employ an appropriate staff to investigate allegations that a
1521 person required to be licensed, certified, or registered under this chapter fails to comply with
1522 this chapter.
1523 (n) The division may employ other professional, clerical, and technical staff as may be
1524 necessary to properly administer the work of the division under this chapter.
1525 (o) [The division may] (i) Upon request, the division shall make available[, at a
1526 reasonable cost determined by the division], either directly or through a third party, a list of the
1527 names and addresses of [all] the persons licensed, registered, or certified by the division under
1528 this chapter [to the extent the information is a public record under Title 63G, Chapter 2,
1529 Government Records Access and Management Act].
1530 (ii) A person who requests a list under this Subsection (1)(o) shall pay the costs
1531 incurred by the division to make the list available.
1532 (2) (a) The division shall approve an expert witness who is not otherwise licensed or
1533 certified under this chapter to appear in an administrative or judicial tax proceeding to provide
1534 evidence related to the valuation of real property that is assessed by the State Tax Commission,
1535 [provided that] if the:
1536 (i) approval is limited to a specific proceeding;
1537 (ii) approval is valid until the proceeding becomes final;
1538 (iii) applicant pays to the division an approval fee [to] set by the division in accordance
1539 with Section 63J-1-504 ;
1540 (iv) applicant provides the applicant's name, address, occupation, and professional
1541 credentials; and
1542 (v) applicant provides a notarized statement that:
1543 (A) the applicant is competent to render an appraisal and to testify as an expert witness
1544 in the proceeding; and

1545 (B) the appraisal and testimony to be offered shall be in accordance with the Uniform
1546 Standards of Professional Appraisal Practice adopted by the board.
1547 (b) Subsection (2)(a) [is effective for] applies to an administrative or judicial property
1548 tax proceeding related to the valuation of real property that is assessed by the State Tax
1549 Commission.
1550 (3) (a) If the conditions of Subsection (3)(b) are met, the division is immune from any
1551 civil action or criminal prosecution for initiating or assisting in a lawful investigation of an act
1552 of, or participating in a disciplinary proceeding concerning:
1553 (i) a person required to be licensed, certified, or registered pursuant to this chapter; or
1554 (ii) a person approved as an expert witness pursuant to this chapter.
1555 (b) This Subsection (3) applies if the division takes the action:
1556 (i) without malicious intent; and
1557 (ii) in the reasonable belief that the action is taken pursuant to the powers and duties
1558 vested in the division under this chapter.
1559 (4) (a) An individual applying to register as a trainee under this chapter shall:
1560 (i) submit a fingerprint card in a form acceptable to the division at the time of applying
1561 for registration; and
1562 (ii) consent to a criminal background check by:
1563 (A) the Utah Bureau of Criminal Identification; and
1564 (B) the Federal Bureau of Investigation.
1565 (b) The division shall request the Department of Public Safety to complete a Federal
1566 Bureau of Investigation criminal background check for an applicant through a national criminal
1567 history system.
1568 (c) The applicant shall pay the cost of:
1569 (i) the fingerprinting required by this section; and
1570 (ii) the criminal background check required by this section.
1571 (d) (i) A registration as a trainee under this chapter is conditional pending completion
1572 of the criminal background check required by this Subsection (4).
1573 (ii) [If a criminal background check discloses that an applicant fails to accurately
1574 disclose a criminal history, the] A registration is immediately and automatically revoked[.] if a
1575 criminal background check discloses that the applicant fails to accurately disclose a criminal

1576 history involving:
1577 (A) the appraisal industry;
1578 (B) fraud;
1579 (C) misrepresentation; or
1580 (D) deceit.
1581 (iii) If a criminal background check discloses that an applicant fails to accurately
1582 disclose a criminal history other than one described in Subsection (4)(d)(ii), the division:
1583 (A) shall review the application; and
1584 (B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
1585 Utah Administrative Rulemaking Act, may:
1586 (I) place one or more conditions on a registration;
1587 (II) place one or more restrictions on a registration;
1588 (III) revoke a registration; or
1589 (IV) refer the application to the board for a decision.
1590 [(iii)] (iv) An individual whose conditional registration is automatically revoked under
1591 Subsection (4)(d)(ii) or whose registration is conditioned, restricted, or revoked under
1592 Subsection (4)(d)(iii) may appeal the [revocation] action in a hearing conducted by the board:
1593 (A) after the [revocation] action is taken; and
1594 (B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
1595 [(iv)] (v) The board may delegate to the division or an administrative law judge the
1596 authority to conduct a hearing described in Subsection (4)(d)[(iii)](iv).
1597 [(v)] (vi) Relief from [a] an automatic revocation under Subsection (4)(d)(ii) may be
1598 granted only if:
1599 (A) the criminal history upon which the division [based] bases the revocation:
1600 (I) did not occur; or
1601 (II) is the criminal history of another person;
1602 (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
1603 (II) the applicant has a reasonable good faith belief at the time of application that there
1604 was no criminal history to be disclosed; or
1605 (C) the division fails to follow the prescribed procedure for the revocation.
1606 (e) If a registration is revoked or a revocation is upheld after a hearing described in

1607 Subsection (4)(d)[(iii)](iv), the individual may not apply for a new [license] registration for a
1608 period of 12 months after the day on which the registration is revoked.
1609 (f) The board may delegate to the division the authority to make a decision on whether
1610 relief from a revocation should be granted.
1611 (g) [The funds] Money paid by an applicant for the cost of the criminal background
1612 check [shall be] is nonlapsing.
1613 Section 27. Section 61-2b-8 is amended to read:
1614 61-2b-8. Duties of board.
1615 (1) (a) The board shall provide technical assistance to the division relating to real estate
1616 appraisal standards and real estate appraiser qualifications.
1617 (b) The board has the powers and duties listed in this section.
1618 (2) The board shall:
1619 (a) determine the experience[,] and education[, and examination] requirements
1620 appropriate for a person licensed under this chapter;
1621 (b) determine the experience[,] and education[, and examination] requirements
1622 appropriate for a person certified under this chapter:
1623 (i) in compliance with the minimum requirements of Financial Institutions Reform,
1624 Recovery, and Enforcement Act of 1989; and
1625 (ii) consistent with the intent of this chapter;
1626 (c) determine the appraisal related acts that may be performed by:
1627 (i) a trainee on the basis of the trainee's education and experience;
1628 (ii) clerical staff; and
1629 (iii) a person who:
1630 (A) does not hold a license or certification; and
1631 (B) assists an appraiser licensed or certified under this chapter in providing appraisal
1632 services or consultation services;
1633 (d) determine the procedures for a trainee to register and to renew a registration with
1634 the division; and
1635 (e) develop one or more programs to upgrade and improve the experience, education,
1636 and examinations as required under this chapter.
1637 (3) (a) The experience[,] and education[, and examination] requirements established by

1638 the board for a person licensed or certified under this chapter shall be the minimum criteria
1639 established by the [Appraiser] Appraisal Qualification Board [of the Appraisal Foundation],
1640 unless, after notice and a public hearing held in accordance with Title 63G, Chapter 3, Utah
1641 Administrative Rulemaking Act, the board finds that the minimum criteria are not appropriate
1642 for a state-licensed appraiser or a state-certified appraiser in this state.
1643 (b) If under Subsection (3)(a) the board makes a finding that the minimum criteria are
1644 not appropriate, the board shall recommend appropriate criteria to the Legislature.
1645 (4) The board shall:
1646 (a) determine the continuing education requirements appropriate for the renewal of a
1647 license, certification, or registration issued under this chapter, except that the continuing
1648 education requirements established by the board shall at least meet the minimum criteria
1649 established by the Appraisal Qualification Board;
1650 (b) develop one or more programs to upgrade and improve continuing education; and
1651 (c) recommend to the division one or more available continuing education courses that
1652 meet the requirements of this chapter.
1653 (5) (a) The board shall consider the proper interpretation or explanation of the Uniform
1654 Standards of Professional Appraisal Practice as required by Section 61-2b-27 when:
1655 (i) an interpretation or explanation is necessary in the enforcement of this chapter; and
1656 (ii) the Appraisal Standards Board of the Appraisal Foundation has not issued an
1657 interpretation or explanation.
1658 (b) If the conditions of Subsection (5)(a) are met, the board shall recommend to the
1659 division the appropriate interpretation or explanation that the division should adopt as a rule
1660 under this chapter.
1661 (c) The board may by rule made in accordance with Title 63G, Chapter 3, Utah
1662 Administrative Rulemaking Act, and Section 61-2b-27 provide for an exemption from a
1663 provision of the Uniform Standards of Professional Appraisal Practice for an activity engaged
1664 in on behalf of a governmental entity.
1665 [(6) The board shall develop and establish or approve the examination specifications
1666 and the minimum score required to pass an examination for licensure or certification.]
1667 [(7) The board may review the:]
1668 [(a) bank of questions and answers that comprise the examination for a person licensed

1669 and certified under this chapter;]
1670 [(b) procedure that is established for selecting individual questions from the bank of
1671 questions for use in each scheduled examination; and]
1672 [(c) questions in the bank of questions and the related answers to determine whether
1673 they meet the examination specifications established by the board.]
1674 [(8)] (6) (a) The board shall conduct an administrative hearing, not delegated by the
1675 board to an administrative law judge, in connection with a disciplinary proceeding under
1676 Sections 61-2b-30 and 61-2b-31 concerning:
1677 (i) a person required to be licensed, certified, or registered under this chapter; and
1678 (ii) the person's failure to comply with this chapter and the Uniform Standards of
1679 Professional Appraisal Practice as adopted under Section 61-2b-27 .
1680 (b) The board shall issue in an administrative hearing a decision that contains findings
1681 of fact and conclusions of law.
1682 (c) When a determination is made that a person required to be licensed, certified, or
1683 registered under this chapter has violated this chapter, the division shall implement disciplinary
1684 action determined by the board.
1685 [(9)] (7) A member of the board is immune from a civil action or criminal prosecution
1686 for a disciplinary proceeding concerning a person required to be registered, licensed, certified,
1687 or approved as an expert under this chapter if the action is taken without malicious intent and
1688 in the reasonable belief that the action taken was taken pursuant to the powers and duties
1689 vested in a member of the board under this chapter.
1690 [(10)] (8) The board shall require and pass upon proof necessary to determine the
1691 honesty, competency, integrity, and truthfulness of an applicant for:
1692 (a) original licensure, certification, or registration; and
1693 (b) renewal licensure [or], certification, or registration.
1694 Section 28. Section 61-2b-10 is amended to read:
1695 61-2b-10. State-licensed appraiser -- Authority and qualifications.
1696 (1) A state-licensed appraiser is authorized to appraise complex and noncomplex 1-4
1697 family residential units in this state having a transaction value permitted under the Financial
1698 Institutions Reform, Recovery, and Enforcement Act of 1989, and related federal regulations.
1699 (2) A state-licensed appraiser is authorized to appraise vacant or unimproved land

1700 having a transaction value permitted under the Financial Institutions Reform, Recovery, and
1701 Enforcement Act of 1989, and related federal regulations that is utilized for 1-4 family
1702 purposes or for which the highest and best use is 1-4 family purposes and subdivisions for
1703 which a development analysis/appraisal is not necessary.
1704 (3) A state-licensed appraiser may not issue a certified appraisal report.
1705 (4) To qualify as a state-licensed appraiser, an applicant must:
1706 (a) be of good moral character;
1707 (b) demonstrate honesty, competency, integrity, and truthfulness;
1708 [(b)] (c) pass the licensing examination with a satisfactory score as determined by the
1709 [board] Appraisal Qualification Board;
1710 [(c)] (d) successfully complete not less than 150 classroom hours in courses of study
1711 [approved by the board] that relate to:
1712 (i) real estate appraisal;
1713 (ii) the Uniform Standards of Professional Appraisal Practice; and
1714 (iii) ethical rules to be observed by a real estate appraiser as required by Section
1715 61-2b-27 ; and
1716 [(d)] (e) possess the minimum number of hours of experience in real property appraisal
1717 as established by rule.
1718 (5) The courses of study under Subsection (4)[(c)](d) shall be conducted by:
1719 (a) a college or university;
1720 (b) a community or junior college;
1721 (c) a real estate appraisal or real estate related organization;
1722 (d) a state or federal agency or commission;
1723 (e) a proprietary school;
1724 (f) a provider approved by a state certification and licensing agency; or
1725 (g) the Appraisal Foundation or its boards.
1726 [(6) The board shall require and pass upon proof necessary to determine the honesty,
1727 competency, integrity, and truthfulness of each applicant.]
1728 Section 29. Section 61-2b-14 is amended to read:
1729 61-2b-14. State-certified residential appraiser -- Application.
1730 (1) [Each] An applicant for certification as a residential appraiser shall provide to the

1731 division evidence of:
1732 (a) the applicant's good moral character, honesty, competency, integrity, and
1733 truthfulness;
1734 [(a) of] (b) completion of the certification examination with a satisfactory score as
1735 determined by the [board] Appraisal Qualification Board;
1736 [(b) (i) of] (c) (i) an associate degree or higher degree from an accredited:
1737 (A) college;
1738 (B) junior college;
1739 (C) community college; or
1740 (D) university; or
1741 (ii) [of] successfully passing a curriculum determined by rule of collegiate level subject
1742 matter courses from an accredited:
1743 (A) college;
1744 (B) junior college;
1745 (C) community college; or
1746 (D) university;
1747 [(c) of] (d) satisfactory completion of not less than 200 classroom hours in a
1748 curriculum:
1749 (i) of specific appraisal education determined by rule made by the board; and
1750 (ii) that includes a course in the Uniform Standards of Professional Practice or its
1751 equivalent that [has been] is approved by the Appraisal [Qualifications] Qualification Board [of
1752 the federal Appraisal Foundation authorized by Title XI of the Financial Institutions Reform,
1753 Recovery, and Enforcement Act of 1989];
1754 [(d) of] (e) the minimum number of hours of experience in real property appraisal as
1755 established by rule; and
1756 [(e) that] (f) acquiring the experience required under Subsection [(1)(d) was acquired]
1757 (1)(e) within a reasonable period, as determined by rule, immediately preceding the filing of
1758 the application for certification.
1759 (2) Upon request by the division, [the] an applicant shall make available to the division
1760 for examination:
1761 (a) a detailed listing of the real estate appraisal reports or file memoranda for each year

1762 for which experience is claimed; and
1763 (b) a sample selected by the division of appraisal reports that the applicant has prepared
1764 in the course of the applicant's appraisal practice.
1765 (3) The classroom hours required by Subsection (1)[(c)](d) shall be provided by:
1766 (a) a college or university;
1767 (b) a community or junior college;
1768 (c) a real estate appraisal or real estate related organization;
1769 (d) a state or federal agency or commission;
1770 (e) a proprietary school;
1771 (f) a provider approved by a state certification and licensing agency; or
1772 (g) the Appraisal Foundation or its boards.
1773 Section 30. Section 61-2b-15 is amended to read:
1774 61-2b-15. State-certified general appraiser -- Application -- Qualifications.
1775 (1) [Each] An applicant for certification as a general appraiser shall provide to the
1776 division evidence of:
1777 (a) the applicant's good moral character, honesty, competency, integrity, and
1778 truthfulness;
1779 [(a) of] (b) completion of the certification examination with a satisfactory score as
1780 determined by the [board] Appraisal Qualification Board;
1781 [(b)] (c) (i) [of] a bachelors degree or higher degree from an accredited college or
1782 university; or
1783 (ii) [of] successfully passing a curriculum determined by rule of collegiate level subject
1784 matter courses from an accredited:
1785 (A) college;
1786 (B) junior college;
1787 (C) community college; or
1788 (D) university;
1789 [(c) of] (d) satisfactory completion of not less than 300 classroom hours in a
1790 curriculum:
1791 (i) of specific appraisal education determined by rule; and
1792 (ii) that includes a course in the Uniform Standards of Professional Practice or its

1793 equivalent that has been approved by the Appraisal [Qualifications] Qualification Board [of the
1794 Appraisal Foundation authorized by Title XI of the Financial Institutions Reform, Recovery,
1795 and Enforcement Act of 1989];
1796 [(d) of] (e) the minimum number of hours of experience in real property appraisal as
1797 established by rule; and
1798 [(e) that] (f) acquiring the experience required under Subsection [(1)(d) is acquired]
1799 (1)(e) within a reasonable period, as determined by rule, immediately preceding the filing of
1800 the application for certification.
1801 (2) Upon request by the division, [the] an applicant shall make available to the division
1802 for examination:
1803 (a) a detailed listing of the real estate appraisal reports or file memoranda for each year
1804 for which experience is claimed; and
1805 (b) a sample selected by the division of appraisal reports that the applicant has prepared
1806 in the course of the applicant's appraisal practice.
1807 (3) The classroom hours required by Subsection (1)[(c)](d) shall be provided by:
1808 (a) a college or university;
1809 (b) a community or junior college;
1810 (c) a real estate appraisal or real estate related organization;
1811 (d) a state or federal agency or commission;
1812 (e) a proprietary school;
1813 (f) a provider approved by a state certification and licensing agency; or
1814 (g) the Appraisal Foundation or its boards.
1815 Section 31. Section 61-2b-17 is amended to read:
1816 61-2b-17. State-certified and state-licensed appraisers -- Restrictions on use of
1817 terms -- Conduct prohibited or required -- Trainee.
1818 (1) (a) The terms "state-certified general appraiser," "state-certified residential
1819 appraiser," and "state-licensed appraiser":
1820 (i) may only be used to refer to an individual who is certified or licensed under this
1821 chapter; and
1822 (ii) may not be used following, or immediately in connection with, the name or
1823 signature of a firm, partnership, corporation, or group, or in any manner that it might be

1824 interpreted as referring to a firm, partnership, corporation, group, or to anyone other than the
1825 individual who is certified or licensed under this chapter.
1826 (b) The requirement of this Subsection (1) may not be construed to prevent a
1827 state-certified general appraiser from signing an appraisal report on behalf of a corporation,
1828 partnership, firm, or group practice if it is clear that:
1829 (i) only the individual is certified; and
1830 (ii) the corporation, partnership, firm, or group practice is not certified.
1831 (c) Except as provided in Section 61-2b-25 , a certificate or license may not be issued
1832 under this chapter to a corporation, partnership, firm, or group.
1833 (2) (a) A person other than a state-certified general appraiser or state-certified
1834 residential appraiser, may not assume or use any title, designation, or abbreviation likely to
1835 create the impression of certification in this state as a real estate appraiser.
1836 (b) A person other than a state-licensed appraiser may not assume or use any title,
1837 designation, or abbreviation likely to create the impression of licensure in this state as a real
1838 estate appraiser.
1839 (3) (a) Only an individual who has qualified under the certification requirements of this
1840 chapter is authorized to prepare and sign a certified appraisal report relating to real estate or
1841 real property in this state.
1842 (b) If a certified appraisal report is prepared and signed by a state-certified residential
1843 appraiser, the certified appraisal report shall state, immediately following the signature on the
1844 report, "State-Certified Residential Appraiser."
1845 (c) If a certified appraisal report is prepared and signed by a state-certified general
1846 appraiser, the certified appraisal report shall state, immediately following the signature on the
1847 report, "State-Certified General Appraiser."
1848 (d) An appraisal report prepared by a state-licensed appraiser shall state, immediately
1849 following the signature on the report, "State-Licensed Appraiser."
1850 (e) When signing a certified appraisal report, a state-certified appraiser shall also place
1851 on the report, immediately below the state-certified appraiser's signature the state-certified
1852 appraiser's certificate number and its expiration date.
1853 (f) A state-certified residential appraiser may not prepare a certified appraisal report
1854 outside the state-certified residential appraiser's authority as defined in Section 61-2b-13 .

1855 (g) A state-licensed appraiser who assisted in the preparation of a certified appraisal
1856 report is authorized to cosign the certified appraisal report.
1857 (4) A person who has not qualified under this chapter may not describe or refer to any
1858 appraisal or appraisal report relating to real estate or real property in this state by the terms
1859 "certified appraisal" or "certified appraisal report."
1860 (5) If a trainee assists [a state-licensed appraiser or] a state-certified appraiser in the
1861 preparation of an appraisal report, the appraisal report shall disclose:
1862 (a) the trainee's name; and
1863 (b) the extent to which the trainee assists in the preparation of the appraisal report.
1864 Section 32. Section 61-2b-18 is amended to read:
1865 61-2b-18. Application for licensure, certification, or registration -- Approval as
1866 an expert witness.
1867 (1) An application for the following shall be sent to the division on a form approved by
1868 the division:
1869 (a) original certification, licensure, or registration;
1870 (b) approval as an expert witness; and
1871 (c) renewal of certification [or], licensure, or registration.
1872 (2) The payment of the appropriate fee, as [fixed] established by the division, with the
1873 concurrence of the board, in accordance with Section 63J-1-504 , must accompany an
1874 application for:
1875 (a) approval as an expert witness;
1876 (b) original certification, licensure, or registration; and
1877 (c) renewal of certification [or], licensure, or registration.
1878 (3) At the time of filing an application described in Subsection (1), an applicant shall:
1879 (a) sign a pledge to comply with the Uniform Standards of Professional Appraisal
1880 Practice and the ethical rules to be observed by an appraiser that are established under Section
1881 61-2b-27 for:
1882 (i) a certified or licensed appraiser;
1883 (ii) a trainee; or
1884 (iii) an expert witness approved under this chapter; and
1885 (b) certify that the applicant understands the types of misconduct, as set forth in this

1886 chapter, for which a disciplinary proceeding may be initiated against a person certified,
1887 licensed, or registered under this chapter.
1888 Section 33. Section 61-2b-19 is amended to read:
1889 61-2b-19. Expiration of license, certification, or registration.
1890 (1) [The] An initial license [or], certification, or registration issued under this chapter
1891 expires on the expiration date indicated on the license [or], certificate, or registration.
1892 (2) A renewal license [or], certification, or registration issued under this chapter
1893 expires two years from the date of issuance.
1894 (3) (a) The scheduled expiration date of [the] a license [or], certification, or registration
1895 shall appear on the license [or], certification, or registration document [and no other notice of
1896 its expiration need be given to its holder].
1897 (b) The division is not required to provide a holder of a license, certification, or
1898 registration notice of its expiration.
1899 Section 34. Section 61-2b-20 is amended to read:
1900 61-2b-20. Renewal of license, certification, or registration.
1901 [(1) To obtain a renewal of a license or certification under this chapter, the holder of a
1902 current, valid license or certification shall, in compliance with procedures established by the
1903 division and the board, make application and pay the prescribed fee to the division before the
1904 expiration date of the license or certification.]
1905 [(2) An application for renewal of a license or certification shall be accompanied by]
1906 (1) To renew a license, certification, or registration, before the license, certification, or
1907 registration expires, the holder of the license, certification, or registration shall submit to the
1908 division in compliance with procedures set by the division and the board:
1909 (a) an application for renewal;
1910 (b) a fee established by the division and the board, in accordance with Section
1911 63J-1-504 ; and
1912 (c) evidence in the form prescribed by the division of having completed the continuing
1913 education requirements for renewal specified in this chapter.
1914 [(3)] (2) (a) A license [or], certification,or registration expires if it is not renewed on or
1915 before its expiration date.
1916 (b) For a period of 30 days after the expiration date, a license [or], certification, or

1917 registration may be reinstated upon:
1918 (i) payment of a renewal fee and a late fee determined by the division and the board;
1919 and
1920 (ii) satisfying the continuing education requirements specified in Section 61-2b-40 .
1921 (c) After the 30-day period described in Subsection [(3)] (2)(b), and until six months
1922 after the expiration date, [the] a license [or], certification, or registration may be reinstated by:
1923 (i) paying a renewal fee and a reinstatement fee determined by the division and the
1924 board; and
1925 (ii) satisfying the continuing education requirements specified in Section 61-2b-40 .
1926 (d) After the six-month period described in Subsection [(3)] (2)(c), and until one year
1927 after the expiration date, [the] a license [or], certification, or registration may be reinstated by:
1928 (i) paying a renewal fee and a reinstatement fee determined by the division and the
1929 board in accordance with Section 63J-1-504 ;
1930 (ii) providing proof acceptable to the division and the board of the person having
1931 satisfied the continuing education requirements of Section 61-2b-40 ; and
1932 (iii) providing proof acceptable to the division and the board of the person completing
1933 24 hours of continuing education:
1934 (A) in addition to the requirements in Section 61-2b-40 ; and
1935 (B) on a subject determined by the division by rule made in accordance with Title 63G,
1936 Chapter 3, Utah Administrative Rulemaking Act.
1937 (e) The division shall relicense [or], recertify, or reregister a person who does not
1938 renew that person's license [or], certification, or registration within one year after the expiration
1939 date as prescribed for an original application.
1940 (f) Notwithstanding Subsection [(3)] (2)(a), the division may extend the term of a
1941 license, certification, or registration that would expire under Subsection [(3)] (2)(a) except for
1942 the extension if:
1943 (i) the person complies with the requirements of this section to renew the license,
1944 certification, or registration; and
1945 (ii) at the time of the extension, there is pending under this chapter:
1946 (A) the application for renewal of the license, certification, registration; or
1947 (B) a disciplinary action.

1948 [(4)] (3) A person who is licensed, certified, or registered under this chapter shall
1949 notify the division of the following by sending the division a signed statement within 10
1950 business days of:
1951 (a) (i) a conviction of a criminal offense;
1952 (ii) the entry of a plea in abeyance to a criminal offense; or
1953 (iii) the potential resolution of a criminal case by:
1954 (A) a diversion agreement; or
1955 (B) any other agreement under which a criminal charge is suspended for a period of
1956 time;
1957 (b) filing a personal bankruptcy or business bankruptcy;
1958 (c) the suspension, revocation, surrender, cancellation, or denial of a professional
1959 license, certification, or registration of the person, whether the license, certification, or
1960 registration is issued by this state or another jurisdiction; or
1961 (d) the entry of a cease and desist order or a temporary or permanent injunction:
1962 (i) against the person by a court or [licensing] administrative agency; and
1963 (ii) on the basis of:
1964 (A) conduct or a practice involving an act regulated by this chapter; or
1965 (B) conduct involving fraud, misrepresentation, or deceit.
1966 Section 35. Section 61-2b-25 is amended to read:
1967 61-2b-25. Other law unaffected.
1968 [Nothing contained in this] This chapter [shall] may not be considered to prohibit a
1969 person approved, licensed, [or] certified, or registered under this chapter from engaging in the
1970 practice of real estate appraising as a professional corporation or a limited liability company in
1971 accordance with:
1972 (1) Title 16, Chapter 11, Professional Corporation Act; or
1973 (2) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act.
1974 Section 36. Section 61-2b-28 is amended to read:
1975 61-2b-28. Enforcement -- Investigation -- Orders -- Hearings.
1976 (1) (a) The division may investigate the actions of:
1977 (i) a person registered, licensed, or certified under this chapter;
1978 (ii) an applicant for registration, licensure, or certification;

1979 (iii) an applicant for renewal of registration, licensure, or certification; or
1980 (iv) a person required to be registered, licensed, or certified under this chapter.
1981 (b) The division may initiate an agency action against a person described in Subsection
1982 (1)(a) in accordance with Title 63G, Chapter 4, Administrative Procedures Act, to:
1983 (i) impose disciplinary action;
1984 (ii) deny issuance to an applicant of:
1985 (A) an original registration, license, or certification; or
1986 (B) a renewal of a registration, license, or certification; or
1987 (iii) issue a cease and desist order as provided in Subsection (3).
1988 (2) (a) The division may:
1989 (i) administer an oath or affirmation;
1990 (ii) subpoena a witness or evidence;
1991 (iii) take evidence; and
1992 (iv) require the production of a book, paper, contract, record, [other] document, [or]
1993 information, or evidence relevant to the investigation described in Subsection (1).
1994 (b) The division may serve a subpoena by certified mail.
1995 (c) A failure to respond to a request by the division in an investigation authorized under
1996 this chapter is considered to be a separate violation of this chapter, including:
1997 (i) failing to respond to a subpoena as a witness;
1998 (ii) withholding evidence; or
1999 (iii) failing to produce a book, paper, contract, document, information, or record.
2000 (d) (i) A person shall pay the costs incurred by the division to copy a book, paper,
2001 contract, document, information, or record required under this chapter, including the costs
2002 incurred to copy an electronic book, paper, contract, document, information, or record in a
2003 universally readable format.
2004 (ii) If a person fails to pay the costs described in Subsection (2)(d)(i) when due, the
2005 person's license, certification, or registration is automatically suspended:
2006 (A) beginning the day on which the payment of costs is due; and
2007 (B) ending the day on which the costs are paid.
2008 (3) (a) The director shall issue and serve upon a person an order directing that person to
2009 cease and desist from an act if:

2010 (i) the director has reason to believe that the person has been engaging, is about to
2011 engage, or is engaging in the act constituting a violation of this chapter; and
2012 (ii) it appears to the director that it would be in the public interest to stop the act.
2013 (b) Within 10 days after receiving the order, the person upon whom the order is served
2014 may request a hearing.
2015 (c) Pending a hearing requested under Subsection (3)(b), a cease and desist order shall
2016 remain in effect.
2017 (d) If a request for hearing is made, the division shall follow the procedures and
2018 requirements of Title 63G, Chapter 4, Administrative Procedures Act.
2019 (4) (a) After a hearing requested under Subsection (3), if the board agrees that an act of
2020 the person violates this chapter, the board:
2021 (i) shall issue an order making the cease and desist order permanent; and
2022 (ii) may impose another disciplinary action under Section 61-2b-29 .
2023 (b) The director shall commence an action in the name of the Department of
2024 Commerce and Division of Real Estate, in the district court in the county in which an act
2025 described in Subsection (3) occurs or where the person resides or carries on business, to enjoin
2026 and restrain the person from violating this chapter if:
2027 (i) (A) a hearing is not requested under Subsection (3); and
2028 (B) the person fails to cease the act described in Subsection (3); or
2029 (ii) after discontinuing the act described in Subsection (3), the person again
2030 commences the act.
2031 (5) A remedy or action provided in this section does not limit, interfere with, or prevent
2032 the prosecution of another remedy or action, including a criminal proceeding.
2033 Section 37. Section 61-2b-29 is amended to read:
2034 61-2b-29. Disciplinary action -- Grounds.
2035 (1) (a) The board may order disciplinary action against a person:
2036 (i) registered, licensed, or certified under this chapter; or
2037 (ii) required to be registered, licensed, or certified under this chapter.
2038 (b) On the basis of a ground listed in Subsection (2) for disciplinary action, board
2039 action may include:
2040 (i) revoking, suspending, or placing a person's registration, license, or certification on

2041 probation;
2042 (ii) denying a person's original registration, license, or certification;
2043 (iii) denying a person's renewal license [or], certification, or registration;
2044 (iv) in the case of denial or revocation of a registration, license, or certification, setting
2045 a waiting period for an applicant to apply for a registration, license, or certification under this
2046 chapter;
2047 (v) ordering remedial education;
2048 (vi) imposing a civil penalty upon a person not to exceed the greater of:
2049 (A) [$2,500] $5,000 for each violation; or
2050 (B) the amount of any gain or economic benefit from a violation;
2051 (vii) issuing a cease and desist order;
2052 (viii) modifying an action described in Subsections (1)(b)(i) through (vii) if the board
2053 finds that the person complies with court ordered restitution; or
2054 (ix) doing any combination of Subsections (1)(b)(i) through (viii).
2055 (c) (i) If the board or division issues an order that orders a fine or educational
2056 requirements as part of the disciplinary action against a person, including a stipulation and
2057 order, the board or division shall state in the order the deadline by which the person shall
2058 comply with the fine or educational requirements.
2059 (ii) If a person fails to comply with a stated deadline:
2060 (A) the person's license, certificate, or registration is automatically suspended:
2061 (I) beginning on the day specified in the order as the deadline for compliance; and
2062 (II) ending the day on which the person complies in full with the order; and
2063 (B) if the person fails to pay a fine required by an order, the division may begin a
2064 collection process:
2065 (I) established by the division by rule made in accordance with Title 63G, Chapter 3,
2066 Utah Administrative Rulemaking Act; and
2067 (II) subject to Title 63A, Chapter 8, Office of State Debt Collection.
2068 (2) The following are grounds for disciplinary action under this section:
2069 (a) procuring or attempting to procure a registration, license, or certification under this
2070 chapter:
2071 (i) by fraud; or

2072 (ii) by making a false statement, submitting false information, or making a material
2073 misrepresentation in an application filed with the division;
2074 (b) paying money or attempting to pay money other than a fee provided for by this
2075 chapter to a member or employee of the division to procure a registration, license, or
2076 certification under this chapter;
2077 (c) an act or omission in the practice of real estate appraising that constitutes
2078 dishonesty, fraud, or misrepresentation;
2079 (d) entry of a judgment against a registrant, licensee, or certificate holder on grounds of
2080 fraud, misrepresentation, or deceit in the making of an appraisal of real estate;
2081 (e) a guilty plea to a criminal offense involving moral turpitude that is held in
2082 abeyance, or a conviction, including a conviction based upon a plea of guilty or nolo
2083 contendere, of a criminal offense involving moral turpitude;
2084 (f) engaging in the business of real estate appraising under an assumed or fictitious
2085 name not properly registered in this state;
2086 (g) paying a finder's fee or a referral fee to a person not licensed or certified under this
2087 chapter in connection with an appraisal of real estate or real property in this state;
2088 (h) making a false or misleading statement in:
2089 (i) that portion of a written appraisal report that deals with professional qualifications;
2090 or
2091 (ii) testimony concerning professional qualifications;
2092 (i) violating or disregarding:
2093 (i) [a provision of] this chapter;
2094 (ii) an order of the board; or
2095 (iii) a rule issued under this chapter;
2096 (j) violating the confidential nature of governmental records to which a person
2097 registered, licensed, certified, or approved as an expert under this chapter gained access
2098 through employment or engagement as an appraiser by a governmental agency;
2099 (k) accepting a contingent fee for performing an appraisal [as defined in Subsection
2100 61-2b-2 (1)(a)] if in fact the fee is or was contingent upon:
2101 (i) the appraiser reporting a predetermined analysis, opinion, or conclusion;
2102 (ii) the analysis, opinion, conclusion, or valuation reached; or

2103 (iii) the consequences resulting from the appraisal assignment;
2104 (l) unprofessional conduct as defined by statute or rule;
2105 (m) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
2106 (i) providing a title insurance product or service without the approval required by
2107 Section 31A-2-405 ; or
2108 (ii) knowingly providing false or misleading information in the statement required by
2109 Subsection 31A-2-405 (2); or
2110 (n) other conduct that constitutes dishonest dealing.
2111 Section 38. Section 61-2b-30.5 is amended to read:
2112 61-2b-30.5. Reinstatement of license, certification, registration, approval --
2113 Expert witness -- Trainee.
2114 (1) An individual [who has had a] whose license, certification, registration, or approval
2115 is revoked under this chapter:
2116 (a) may not apply for renewal of that license, certification, registration, or approval;
2117 and
2118 (b) may apply for licensure, certification, registration, or approval as prescribed for an
2119 original license [or], certification, registration, or approval subject to the limitations in
2120 Subsection (2).
2121 (2) An applicant for licensure, certification, registration, or approval as an expert
2122 witness under Subsection (1):
2123 (a) may not apply for licensure, certification, registration, or approval until at least five
2124 years after the date of revocation of the applicant's original license, certification, registration, or
2125 approval; and
2126 (b) is not entitled to credit for experience gained prior to the date of revocation in
2127 determining whether the applicant meets the experience requirement for licensure, certification,
2128 registration, or approval.
2129 (3) A person whose license or certification is revoked may not act as a trainee until at
2130 least four years after the day on which the person's license or certification is revoked.
2131 Section 39. Section 61-2b-32 is amended to read:
2132 61-2b-32. Registration, licensure, or certification prerequisite to suit for
2133 compensation.

2134 [No] A person engaged in the business of real estate appraising in this state or acting in
2135 the capacity of a real estate appraiser in this state may not bring or maintain [any] an action [in
2136 any] as a plaintiff in a court of this state to collect compensation for the performance of real
2137 estate appraisal services for which registration, licensure, or certification is required by this
2138 chapter without alleging and proving that [he] the person was the holder of a valid registration,
2139 license, or certification in this state at all times during the performance of [such] the real estate
2140 appraisal services.
2141 Section 40. Section 61-2b-33 is amended to read:
2142 61-2b-33. Penalty for violating this chapter -- Automatic revocation.
2143 (1) In addition to being subject to a disciplinary action by the board, a person required
2144 to be licensed, certified, or registered under this chapter who violates this chapter:
2145 (a) is guilty of a class A misdemeanor, upon a conviction of a first violation of this
2146 chapter; and
2147 (b) is guilty of a third degree felony, upon conviction of a second or subsequent
2148 violation of this chapter.
2149 (2) A license [or], certification, or registration issued by the division to a person
2150 convicted of a violation of Section 76-6-1203 is automatically revoked.
2151 Section 41. Section 61-2b-36 is amended to read:
2152 61-2b-36. Contingent fees.
2153 (1) A person licensed or certified under this chapter who enters into an agreement to
2154 perform an appraisal [as defined in Subsection 61-2b-2 (1)(a)] may not accept a contingent fee.
2155 (2) A person licensed or certified under this chapter who enters into an agreement to
2156 provide consultation services [as defined in Subsection 61-2b-2 (1)(f)(i)(A)] may be paid a
2157 fixed fee or a contingent fee.
2158 (3) (a) If a person licensed or certified under this chapter enters into an agreement to
2159 perform consultation services for a contingent fee, this fact shall be clearly stated in each oral
2160 statement.
2161 (b) In addition to the requirements of Subsection (3)(a), if a person licensed or certified
2162 under this chapter prepares a written consultation report or summary, letter of transmittal, or
2163 certification statement for a contingent fee, the person shall clearly state in the report,
2164 summary, letter of transmittal, or certification statement that the report is prepared under a

2165 contingent fee arrangement.
2166 Section 42. Section 61-2b-39 is amended to read:
2167 61-2b-39. Registration, licensure, or certification history.
2168 The division may, upon payment of a fee [in an amount specified in rule] established by
2169 the division in accordance with Section 63J-1-504 , issue to [any] a person a verified [license]
2170 history of:
2171 (1) [any] a person licensed [or], certified, or registered under this chapter; or
2172 (2) [any] a person previously registered, licensed, or certified under this chapter.
2173 Section 43. Section 61-2b-40 is amended to read:
2174 61-2b-40. Continuing education requirements.
2175 (1) As a prerequisite to renewal of a license [or], certification, or registration, the
2176 applicant for renewal shall present evidence satisfactory to the division of having met the
2177 continuing education requirements of this section.
2178 (2) [For any] A person licensed [or], certified, or registered under this chapter[, the
2179 continuing education requirement for renewal of licensure or certification shall be the
2180 completion by the applicant,] shall complete during the two-year period immediately preceding
2181 the filing of an application for renewal[, of] not less than 28 classroom hours of instruction in
2182 courses or seminars that have received the approval of the [board] division.
2183 (3) The division may adopt rules for the implementation of this section to assure that
2184 each person renewing that person's license [or], certification, or registration under this chapter
2185 has a working knowledge of current real estate appraisal theories, practices, and techniques that
2186 will enable the person to provide competent real estate appraisal services to the members of the
2187 public with whom that person deals in a professional relationship under the authority of that
2188 person's license [or], certificate, or registration.
2189 (4) An amendment or repeal of a rule adopted by the division under this section [shall]
2190 does not operate to deprive a person of credit toward renewal of that person's license [or],
2191 certification, or registration for [any] a course of instruction that is successfully completed by
2192 the applicant [prior to] before the date of the amendment or repeal of the rule.
2193 (5) In lieu of meeting the requirements set forth in Subsection (2) and applicable rules,
2194 an applicant for renewal may satisfy all or part of the continuing education requirements that
2195 are imposed by the board in excess of the minimum requirements of the Appraisal

2196 Qualification Board by presenting evidence of the following:
2197 (a) completion of an educational program of study determined by the board to be
2198 equivalent, for continuing education purposes, to courses or seminars approved by the board; or
2199 (b) participation other than as a student in educational processes and programs
2200 approved by the board that relate to real property appraisal theory, practices, or techniques
2201 including teaching, program development, and preparation of textbooks, monographs, articles,
2202 and other instructional materials.
2203 (6) The board shall develop and propose to the division rules [for the implementation
2204 of this section to assure that a person who renews that person's license or certification has a
2205 working knowledge of current real estate appraisal theories, practices, and techniques that will
2206 enable the person to provide competent real estate appraisal services to the members of the
2207 public with whom that person deals in a professional relationship under the authority of that
2208 person's license or certification. These rules] described in Subsection (3). The rules developed
2209 and proposed by the board under this Subsection (6) shall prescribe:
2210 (a) policies and procedures to be followed in obtaining [board] division approval of
2211 courses of instruction and seminars;
2212 (b) standards, policies, and procedures to be used by the division in evaluating an
2213 applicant's claims of equivalency; and
2214 (c) standards, monitoring methods, and systems for recording attendance to be
2215 employed by course and seminar sponsors as a prerequisite to division approval of courses and
2216 seminars for credit.
2217 (7) (a) A person whose license [or], certification [has been], or registration is revoked
2218 or suspended as the result of a disciplinary action taken by the board may not apply for
2219 reinstatement unless the person presents evidence of completion of the continuing education
2220 requirement that is [provided in] required by this chapter for renewal.
2221 (b) The continuing education required under Subsection (7)(a) [shall] may not be
2222 imposed upon an applicant for reinstatement who has been required by the division to
2223 successfully complete the examination for licensure or certification required by Section
2224 61-2b-20 as a condition to reinstatement.
2225 Section 44. Section 61-2c-102 is amended to read:
2226 61-2c-102. Definitions.

2227 (1) As used in this chapter:
2228 [(a) "Affiliate" means a person who directly, or indirectly through one or more
2229 intermediaries, controls or is controlled by, or is under common control with, a specified
2230 individual or entity.]
2231 (a) "Affiliation" means that a mortgage loan originator is associated with a principal
2232 lending manager in accordance with Section 61-2c-209 .
2233 (b) "Applicant" means a person applying for a license under this chapter.
2234 (c) "Approved examination provider" means a person approved by the nationwide
2235 database as an approved test provider.
2236 (d) "Associate lending manager" means an individual who:
2237 (i) qualifies under this chapter as a principal lending manager; and
2238 (ii) works by or on behalf of another principal lending manager in transacting the
2239 business of residential mortgage loans.
2240 (e) "Branch office" means a licensed entity's office:
2241 (i) for the transaction of the business of residential mortgage loans regulated under this
2242 chapter;
2243 (ii) other than the main office of the licensed entity; and
2244 (iii) that operates under the same business name as the licensed entity.
2245 (f) (i) "Business of residential mortgage loans" means for compensation or in the
2246 expectation of compensation to:
2247 (A) engage in an act that makes an individual a mortgage loan originator;
2248 (B) make or originate a residential mortgage loan;
2249 (C) directly or indirectly solicit a residential mortgage loan for another; or
2250 (D) unless excluded under Subsection (1)(f)(ii), render services related to the
2251 origination of a residential mortgage loan including:
2252 (I) preparing a loan package;
2253 (II) communicating with the borrower and lender; or
2254 (III) advising on a loan term.
2255 (ii) "Business of residential mortgage loans" does not include:
2256 (A) if working as an employee under the direction of and subject to the supervision and
2257 instruction of a person licensed under this chapter, the performance of a clerical or support duty

2258 such as:
2259 (I) the receipt, collection, or distribution of information common for the processing or
2260 underwriting of a loan in the mortgage industry other than taking an application;
2261 (II) communicating with a consumer to obtain information necessary for the processing
2262 or underwriting of a residential mortgage loan;
2263 (III) word processing;
2264 (IV) sending correspondence; or
2265 (V) assembling files;
2266 (B) ownership of an entity that engages in the business of residential mortgage loans if
2267 the owner does not personally perform the acts listed in Subsection (1)(f)(i); or
2268 (C) except if an individual will engage in an activity as a mortgage loan originator,
2269 acting in one or more of the following capacities:
2270 (I) a loan wholesaler;
2271 (II) an account executive for a loan wholesaler;
2272 (III) a loan underwriter;
2273 (IV) a loan closer; or
2274 (V) funding a loan.
2275 (g) "Certified education provider" means a person who is certified under Section
2276 61-2c-204.1 to provide one or more of the following:
2277 (i) Utah-specific prelicensing education; or
2278 (ii) Utah-specific continuing education.
2279 (h) "Closed-end" means a loan:
2280 (i) with a fixed amount borrowed; and
2281 (ii) that does not permit additional borrowing secured by the same collateral.
2282 (i) "Commission" means the Residential Mortgage Regulatory Commission created in
2283 Section 61-2c-104 .
2284 (j) "Compensation" means anything of economic value that is paid, loaned, granted,
2285 given, donated, or transferred to an individual or entity for or in consideration of:
2286 (i) services;
2287 (ii) personal or real property; or
2288 (iii) another thing of value.

2289 (k) "Concurrence" means that entities given a concurring rule must jointly agree for the
2290 action to be taken.
2291 [(k)] (l) "Continuing education" means education taken by an individual licensed under
2292 this chapter in order to meet the education requirements imposed by Sections 61-2c-204.1 and
2293 61-2c-205 to renew a license under this chapter.
2294 [(l)] (m) "Control," as used in Subsection [(1)(a)] 61-2c-105 (2)(f), means the power to
2295 directly or indirectly:
2296 (i) direct or exercise a controlling interest over:
2297 (A) the management or policies of an entity; or
2298 (B) the election of a majority of the directors, officers, managers, or managing partners
2299 of an entity;
2300 (ii) vote 20% or more of a class of voting securities of an entity by an individual; or
2301 (iii) vote more than 5% of a class of voting securities of an entity by another entity.
2302 (n) (i) "Control person" means an individual identified by an entity registered with the
2303 nationwide database as being the individual primarily responsible for directing the management
2304 or policies of the entity.
2305 (ii) "Control person" may include one of the following who is identified as provided in
2306 Subsection (1)(n)(i):
2307 (A) a manager;
2308 (B) a managing partner;
2309 (C) a director;
2310 (D) an executive officer; or
2311 (E) an individual who performs a function similar to an individual listed in this
2312 Subsection (1)(n)(ii).
2313 [(m)] (o) "Depository institution" is as defined in Section 7-1-103 .
2314 [(n)] (p) "Director" means the director of the division.
2315 [(o)] (q) "Division" means the Division of Real Estate.
2316 [(p)] (r) "Dwelling" means a residential structure attached to real property that contains
2317 one to four units including any of the following if used as a residence:
2318 (i) a condominium unit;
2319 (ii) a cooperative unit;

2320 (iii) a manufactured home; or
2321 (iv) a house.
2322 [(q)] (s) "Entity" means:
2323 (i) a corporation;
2324 (ii) a limited liability company;
2325 (iii) a partnership;
2326 (iv) a company;
2327 (v) an association;
2328 (vi) a joint venture;
2329 (vii) a business trust;
2330 (viii) a trust; or
2331 (ix) another organization.
2332 [(r)] (t) "Executive director" means the executive director of the Department of
2333 Commerce.
2334 (u) "Federal licensing requirements" means Secure and Fair Enforcement for Mortgage
2335 Licensing, 12 U.S.C. Sec. 5101, et seq.
2336 [(s)] (v) "Inactive status" means a dormant status into which an unexpired license is
2337 placed when the holder of the license is not currently engaging in the business of residential
2338 mortgage loans.
2339 [(t)] (w) "Licensee" means a person licensed with the division under this chapter.
2340 [(u)] (x) "Licensing examination" means the examination required by Section
2341 61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
2342 [(v)] (y) (i) Except as provided in Subsection (1)[(v)](y)(ii), "mortgage loan originator"
2343 means an individual who for compensation or in expectation of compensation:
2344 (A) (I) takes a residential mortgage loan application; or
2345 [(B)] (II) offers or negotiates terms of a residential mortgage loan[.]; and
2346 (B) is licensed as a mortgage loan originator in accordance with this chapter.
2347 (ii) "[Loan] Mortgage loan originator" does not include a person who:
2348 (A) is described in Subsection (1)[(v)](y)(i), but who performs exclusively
2349 administrative or clerical tasks as described in Subsection (1)(f)(ii)(A);
2350 [(B) unless compensated by a lender, a principal lending manager, or an agent of a

2351 lender or principal lending manager:]
2352 [(I) only performs real estate brokerage activities; and]
2353 [(II) is licensed under Chapter 2, Division of Real Estate; and]
2354 (B) (I) is licensed under Chapter 2f, Real Estate Licensing and Practices Act;
2355 (II) performs only real estate brokerage activities; and
2356 (III) receives no compensation from:
2357 (Aa) a lender;
2358 (Bb) a principal lending manager; or
2359 (Cc) an agent of a lender or principal lending manager; or
2360 (C) is solely involved in extension of credit relating to a timeshare plan, as defined in
2361 11 U.S.C. Sec. 101(53D).
2362 [(w) "Mortgage officer" means an individual who is licensed with the division to
2363 transact the business of residential mortgage loans through a principal lending manager.]
2364 [(x)] (z) "Nationwide database" means the Nationwide Mortgage Licensing System and
2365 Registry, authorized under [Secure and Fair Enforcement for Mortgage Licensing, 12 U.S.C.
2366 Sec. 5101, et seq] federal licensing requirements.
2367 [(y)] (aa) "Nontraditional mortgage product" means a mortgage product other than a
2368 30-year fixed rate mortgage.
2369 [(z)] (bb) "Person" means an individual or entity.
2370 [(aa)] (cc) "Prelicensing education" means education taken by an individual seeking to
2371 be licensed under this chapter in order to meet the education requirements imposed by Section
2372 61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
2373 [(bb)] (dd) (i) "Principal lending manager" means an individual licensed as a principal
2374 lending manager under Section 61-2c-206 to transact the business of residential mortgage
2375 loans.
2376 (ii) An individual [licensed as] who is a principal lending manager may transact the
2377 business of residential mortgage loans as a mortgage [officer] loan originator.
2378 [(cc)] (ee) "Record" means information that is:
2379 (i) prepared, owned, received, or retained by a person; and
2380 (ii) (A) inscribed on a tangible medium; or
2381 (B) (I) stored in an electronic or other medium; and

2382 (II) [retrievable] in a perceivable and reproducible form.
2383 [(dd)] (ff) "Residential mortgage loan" means an extension of credit, if:
2384 (i) the loan or extension of credit is secured by a:
2385 (A) mortgage;
2386 (B) deed of trust; or
2387 (C) consensual security interest;
2388 (ii) the mortgage, deed of trust, or consensual security interest described in Subsection
2389 (1)[(dd)](ff)(i):
2390 (A) is on a dwelling located in the state; and
2391 (B) is created with the consent of the owner of the residential real property; and
2392 (iii) solely for the purposes of defining "mortgage loan originator," the extension of
2393 credit is primarily for personal, family, or household use.
2394 (gg) "Sponsorship" means an association in accordance with Section 61-2c-209
2395 between an individual licensed under this chapter and an entity licensed under this chapter.
2396 [(ee)] (hh) "State" means:
2397 (i) a state, territory, or possession of the United States;
2398 (ii) the District of Columbia; or
2399 (iii) the Commonwealth of Puerto Rico.
2400 [(ff)] (ii) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
2401 (jj) "Utah-specific" means an educational or examination requirement under this
2402 chapter that relates specifically to Utah.
2403 (2) (a) If a term not defined in this section is defined by rule, the term shall have the
2404 meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
2405 Utah Administrative Rulemaking Act.
2406 (b) If a term not defined in this section is not defined by rule, the term shall have the
2407 meaning commonly accepted in the business community.
2408 Section 45. Section 61-2c-103 is amended to read:
2409 61-2c-103. Powers and duties of the division.
2410 (1) The division shall administer this chapter.
2411 (2) In addition to a power or duty expressly provided in this chapter, the division may:
2412 (a) receive and act on a complaint including:

2413 (i) taking action designed to obtain voluntary compliance with this chapter; or
2414 (ii) commencing an administrative or judicial proceeding on the division's own
2415 initiative;
2416 (b) establish one or more programs for the education of consumers with respect to
2417 residential mortgage loans;
2418 (c) (i) make one or more studies appropriate to effectuate the purposes and policies of
2419 this chapter; and
2420 (ii) make the results of the studies described in Subsection (2)(c)(i) available to the
2421 public;
2422 (d) visit and investigate a person licensed under this chapter, regardless of whether the
2423 person is located in Utah; and
2424 (e) employ one or more necessary hearing examiners, investigators, clerks, and other
2425 employees and agents.
2426 (3) The division shall make rules for the administration of this chapter in accordance
2427 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, including:
2428 (a) licensure procedures for:
2429 (i) a person required by this chapter to obtain a license with the division; and
2430 (ii) the establishment of a branch office by an entity;
2431 (b) proper handling of [monies] money received by a licensee;
2432 (c) record-keeping requirements by a licensee, including proper disposal of a record;
2433 (d) certification procedures for certifying an education provider; and
2434 (e) standards of conduct for a licensee or certified education provider.
2435 (4) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
2436 Administrative Rulemaking Act, require as a condition of maintaining a license or certification
2437 under this chapter that a person comply with a requirement of the nationwide database if:
2438 (a) required for uniformity amongst states; and
2439 (b) not inconsistent with this chapter.
2440 (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
2441 Administrative Rulemaking Act, provide a process under which an individual may challenge
2442 information contained in the nationwide database.
2443 [(6) The division may make available to the public a list of the names and mailing

2444 addresses of licensees:]
2445 [(a) either directly or through a third party; and]
2446 [(b) at a reasonable cost.]
2447 [(7)] (6) The division shall annually:
2448 (a) review the requirements related to the nationwide database imposed by federal
2449 [law] licensing requirements or the nationwide database on:
2450 (i) the division;
2451 (ii) a licensee under this chapter;
2452 (iii) a certified education provider; or
2453 (iv) an approved examination provider; and
2454 (b) after the review required by Subsection [(7)] (6)(a):
2455 (i) report to the Business and Labor Interim Committee the impact of the requirements
2456 on the implementation by the division of this chapter; and
2457 (ii) recommend legislation, if any, to the Business and Labor Interim Committee
2458 related to how the division should coordinate with the nationwide database.
2459 [(8)] (7) The division may enter into a relationship or contract with the nationwide
2460 database or another entity designated by the nationwide database to do the following related to
2461 a licensee or other person subject to this chapter:
2462 (a) collect or maintain a record; and
2463 (b) process a transaction fee or other fee.
2464 [(9)] (8) The division shall regularly report the following to the nationwide database:
2465 (a) a violation of this chapter;
2466 (b) disciplinary action under this chapter; and
2467 (c) other information relevant to this chapter.
2468 (9) If a person pays a fee or costs to the division with a negotiable instrument and the
2469 negotiable instrument is not honored for payment:
2470 (a) the transaction for which the payment is submitted is voidable by the division;
2471 (b) the division may reverse the transaction if payment of the applicable fee or costs is
2472 not received in full; and
2473 (c) the person's license, certification, or registration is automatically suspended:
2474 (i) beginning the day on which the payment is due; and

2475 (ii) ending the day on which payment is made in full.
2476 Section 46. Section 61-2c-104 is amended to read:
2477 61-2c-104. Residential Mortgage Regulatory Commission.
2478 (1) (a) There is created within the division the "Residential Mortgage Regulatory
2479 Commission" consisting of the following members appointed by the executive director with the
2480 approval of the governor:
2481 (i) four members who:
2482 (A) have at least three years of experience in transacting the business of residential
2483 mortgage loans; and
2484 (B) are licensed under this chapter at the time of and during appointment; and
2485 (ii) one member from the general public.
2486 (b) (i) The executive director with the approval of the governor may appoint an
2487 alternate member to the board.
2488 (ii) The alternate member shall:
2489 (A) at the time of the appointment, have at least three years of experience in transacting
2490 the business of residential mortgage loans; and
2491 (B) be licensed under this chapter at the time of and during appointment.
2492 (2) (a) Except as required by Subsection (2)(b), the executive director shall appoint a
2493 new member or reappointed member subject to appointment by the executive director to a
2494 four-year term ending June 30.
2495 (b) Notwithstanding the requirements of Subsection (2)(a), the executive director shall,
2496 at the time of appointment or reappointment, adjust the length of terms to ensure that the terms
2497 of commission members are staggered so that approximately half of the commission is
2498 appointed every two years.
2499 (c) If a vacancy occurs in the membership of the commission for any reason, the
2500 executive director shall appoint a replacement for the unexpired term.
2501 (d) A member shall remain on the commission until the member's successor is
2502 appointed and qualified.
2503 (3) Members of the commission shall annually select one member to serve as chair.
2504 (4) (a) The commission shall meet at least quarterly.
2505 (b) The director may call a meeting in addition to the meetings required by Subsection

2506 (4)(a):
2507 (i) at the discretion of the director;
2508 (ii) at the request of the chair of the commission; or
2509 (iii) at the written request of three or more commission members.
2510 (5) (a) Three members of the commission constitute a quorum for the transaction of
2511 business.
2512 (b) If a quorum of members is unavailable for any meeting and an alternate member is
2513 appointed to the commission by the executive director with the approval of the governor, the
2514 alternate member shall serve as a regular member of the commission for that meeting if with
2515 the presence of the alternate member there is a quorum present at the meeting.
2516 (c) The action of a majority of a quorum present is an action of the commission.
2517 (6) (a) (i) A member who is not a government employee may not receive compensation
2518 or benefits for the member's services, but may receive per diem and expenses incurred in the
2519 performance of the member's official duties at the rates established by the Division of Finance
2520 under Sections 63A-3-106 and 63A-3-107 .
2521 (ii) A member who is not a government employee may decline to receive per diem and
2522 expenses for the member's service.
2523 (b) (i) A state government officer and employee member who does not receive salary,
2524 per diem, or expenses from the member's agency for the member's service may receive per
2525 diem and expenses incurred in the performance of the member's official duties from the
2526 commission at the rates established by the Division of Finance under Sections 63A-3-106 and
2527 63A-3-107 .
2528 (ii) A state government officer and employee member may decline to receive per diem
2529 and expenses for the member's service.
2530 (7) In addition to a duty or power expressly provided for elsewhere in this chapter, the
2531 commission shall:
2532 (a) except as provided in Subsection 61-2c-202 [(2)](3), concur in the licensure or
2533 denial of licensure of a person under this chapter in accordance with Part 2, Licensure;
2534 (b) take disciplinary action with the concurrence of the director in accordance with Part
2535 4, Enforcement; and
2536 (c) advise the division concerning matters related to the administration and

2537 enforcement of this chapter.
2538 Section 47. Section 61-2c-105 is amended to read:
2539 61-2c-105. Scope of chapter -- Exemptions.
2540 (1) (a) Except as to an individual who will engage in an activity as a mortgage loan
2541 originator, this chapter applies to a closed-end residential mortgage loan secured by a first lien
2542 or equivalent security interest on a dwelling.
2543 (b) This chapter does not apply to a transaction covered by Title 70C, Utah Consumer
2544 Credit Code.
2545 (2) The following are exempt from this chapter:
2546 (a) the federal government;
2547 (b) a state;
2548 (c) a political subdivision of a state;
2549 (d) an agency of or entity created by a governmental entity described in Subsections
2550 (2)(a) through (c) including:
2551 (i) the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah Housing
2552 Corporation Act;
2553 (ii) the Federal National Mortgage Corporation;
2554 (iii) the Federal Home Loan Mortgage Corporation;
2555 (iv) the Federal Deposit Insurance Corporation;
2556 (v) the Resolution Trust Corporation;
2557 (vi) the Government National Mortgage Association;
2558 (vii) the Federal Housing Administration;
2559 (viii) the National Credit Union Administration;
2560 (ix) the Farmers Home Administration; and
2561 (x) the United States Department of Veterans Affairs;
2562 (e) a depository institution;
2563 (f) an [affiliate of] entity that controls, is controlled by, or is under common control
2564 with a depository institution;
2565 (g) an employee or agent of an entity described in Subsections (2)(a) through (f):
2566 (i) when that person acts on behalf of the entity described in Subsections (2)(a) through
2567 (f); and

2568 (ii) including an employee of:
2569 (A) a depository institution;
2570 (B) a subsidiary of a depository institution that is:
2571 (I) owned and controlled by the depository institution; and
2572 (II) regulated by a federal banking agency, as defined in 12 U.S.C. Sec. 5102; or
2573 (C) an institution regulated by the Farm Credit Administration;
2574 (h) except as provided in Subsection (3), a person who:
2575 (i) makes a loan:
2576 (A) secured by an interest in real property;
2577 (B) with the person's own money; and
2578 (C) for the person's own investment; and
2579 (ii) that does not engage in the business of making loans secured by an interest in real
2580 property;
2581 (i) except as provided in Subsection (3), a person who receives a mortgage, deed of
2582 trust, or consensual security interest on real property if the individual or entity:
2583 (i) is the seller of real property; and
2584 (ii) receives the mortgage, deed of trust, or consensual security interest on real property
2585 as security for a separate money obligation;
2586 (j) a person who receives a mortgage, deed of trust, or consensual security interest on
2587 real property if:
2588 (i) the person receives the mortgage, deed of trust, or consensual security interest as
2589 security for an obligation payable on an installment or deferred payment basis;
2590 (ii) the obligation described in Subsection (2)(j)(i) arises from a person providing
2591 materials or services used in the improvement of the real property that is the subject of the
2592 mortgage, deed of trust, or consensual security interest; and
2593 (iii) the mortgage, deed of trust, or consensual security interest is created without the
2594 consent of the owner of the real property that is the subject of the mortgage, deed of trust, or
2595 consensual security interest;
2596 (k) a nonprofit corporation that:
2597 (i) is exempt from paying federal income taxes;
2598 (ii) is certified by the United States Small Business Administration as a small business

2599 investment company;
2600 (iii) is organized to promote economic development in this state; and
2601 (iv) has as its primary activity providing financing for business expansion;
2602 (l) except as provided in Subsection (3), a court appointed fiduciary; or
2603 (m) an attorney admitted to practice law in this state:
2604 (i) if the attorney is not principally engaged in the business of negotiating residential
2605 mortgage loans; and
2606 (ii) when the attorney renders services in the course of the attorney's practice as an
2607 attorney.
2608 (3) An individual who will engage in an activity as a mortgage loan originator is
2609 exempt from this chapter only if the individual is an employee or agent exempt under
2610 Subsection (2)(g).
2611 (4) (a) Notwithstanding Subsection (2)(m), an attorney exempt from this chapter may
2612 not engage in conduct described in Section 61-2c-301 when transacting business of residential
2613 mortgage loans.
2614 (b) If an attorney exempt from this chapter violates Subsection (4)(a), the attorney:
2615 (i) is not subject to enforcement by the division under Part 4, Enforcement; and
2616 (ii) is subject to disciplinary action generally applicable to an attorney admitted to
2617 practice law in this state.
2618 (c) If the division receives a complaint alleging an attorney exempt from this chapter is
2619 in violation of Subsection (4)(a), the division shall forward the complaint to the Utah State Bar
2620 for disciplinary action.
2621 (5) (a) An individual who is exempt under Subsection (2) or (3) may voluntarily obtain
2622 a license under this chapter by complying with Part 2, Licensure.
2623 (b) An individual who voluntarily obtains a license pursuant to this Subsection (5)
2624 shall comply with all the provisions of this chapter.
2625 Section 48. Section 61-2c-106 is amended to read:
2626 61-2c-106. Addresses provided the division.
2627 (1) (a) [In providing an address to the division under this chapter, a] A person shall
2628 provide a physical location or street address when the person provides the nationwide database
2629 an address required by the division.

2630 (b) The following when provided under this chapter is public information:
2631 (i) a business address; or
2632 (ii) a mailing address.
2633 (2) A licensee is considered to have received a notification that is mailed to the last
2634 mailing address furnished to the [division] nationwide database by:
2635 (a) if the licensee is an individual, the individual; or
2636 (b) if the licensee is an entity, the principal lending manager of the entity.
2637 Section 49. Section 61-2c-201 is amended to read:
2638 61-2c-201. Licensure required of person engaged in the business of residential
2639 mortgage loans -- Mortgage loan originator -- Principal lending manager.
2640 (1) Unless exempt from this chapter under Section 61-2c-105 , a person may not
2641 transact the business of residential mortgage loans without obtaining a license under this
2642 chapter.
2643 (2) For purposes of this chapter, a person transacts business in this state if:
2644 (a) (i) the person engages in an act that constitutes the business of residential mortgage
2645 loans; and
2646 (ii) (A) the act described in Subsection (2)(a)(i) is directed to or received in this state;
2647 and
2648 (B) the real property that is the subject of the act described in Subsection (2)(a)(i) is
2649 located in this state; or
2650 (b) a representation is made by the person that the person transacts the business of
2651 residential mortgage loans in this state.
2652 (3) An individual who has an ownership interest in an entity required to be licensed
2653 under this chapter is not required to obtain an individual license under this chapter unless the
2654 individual transacts the business of residential mortgage loans.
2655 (4) Unless otherwise exempted under this chapter, licensure under this chapter is
2656 required of both:
2657 (a) the individual who directly transacts the business of residential mortgage loans; and
2658 (b) if the individual transacts business as an employee or agent of an entity or
2659 individual, the entity or individual for whom the employee or agent transacts the business of
2660 residential mortgage loans.

2661 [(5) (a) An individual licensed under this chapter may not engage in the business of
2662 residential mortgage loans on behalf of more than one entity at the same time.]
2663 [(b) This Subsection (5) does not restrict the number of:]
2664 [(i) different lenders a person may use as a funding source for residential mortgage
2665 loans; or]
2666 [(ii) entities in which an individual may have an ownership interest, regardless of
2667 whether the entities are:]
2668 [(A) licensed under this chapter; or]
2669 [(B) exempt under Section 61-2c-105 .]
2670 [(6) An individual licensed under this chapter may not transact the business of
2671 residential mortgage loans for the following at the same time:]
2672 [(a) an entity licensed under this chapter; and]
2673 [(b) an entity that is exempt from licensure under Section 61-2c-105 .]
2674 [(7) A mortgage officer may not receive consideration for transacting the business of
2675 residential mortgage loans from any person or entity except the principal lending manager with
2676 whom the mortgage officer is licensed.]
2677 [(8) A mortgage officer shall conduct all business of residential mortgage loans:]
2678 [(a) through the principal lending manager with which the individual is licensed; and]
2679 [(b) in the business name under which the principal lending manager is authorized by
2680 the division to do business.]
2681 [(9)] (5) (a) If an entity that is [authorized by this chapter] licensed to transact the
2682 business of residential mortgage loans transacts the business of residential mortgage loans
2683 under an assumed business name, the entity shall in accordance with rules made by the
2684 division:
2685 (i) register the assumed name [with the division] under this chapter; and
2686 (ii) furnish [the division] proof that the assumed business name is filed with the
2687 Division of Corporations and Commercial Code pursuant to Title 42, Chapter 2, Conducting
2688 Business Under Assumed Name.
2689 (b) The division may charge a fee established in accordance with Section 63J-1-504 for
2690 registering an assumed name pursuant to this Subsection [(9)] (5).
2691 [(10) A licensee whose license is in inactive status may not transact the business of

2692 residential mortgage loans.]
2693 Section 50. Section 61-2c-202 is amended to read:
2694 61-2c-202. Licensure procedures.
2695 (1) To apply for licensure under this chapter an applicant shall in a manner provided by
2696 the division by rule:
2697 (a) if the applicant is an entity, submit [to the division] a licensure statement that:
2698 (i) lists any name under which the [applicant] entity will transact business in this state;
2699 (ii) lists the address of the principal business location of the [applicant] entity;
2700 [(iii) if the applicant is an entity:]
2701 [(A) lists] (iii) identifies the principal lending manager of the entity; [and]
2702 [(B)] (iv) contains the signature of the principal lending manager;
2703 [(iv) demonstrates that the applicant meets the qualifications listed in Section
2704 61-2c-203 ;]
2705 [(v) if the applicant is an entity, lists:]
2706 [(A) all jurisdictions in which the entity is registered, licensed, or otherwise regulated
2707 in the business of residential mortgage loans; and]
2708 [(B) the history of any disciplinary action or adverse administrative action taken
2709 against the entity by a regulatory agency; and]
2710 (v) identifies the one or more control persons for the entity;
2711 (vi) identifies the jurisdictions in which the entity is registered, licensed, or otherwise
2712 regulated in the business of residential mortgage loans;
2713 (vii) discloses any adverse administrative action taken by an administrative agency
2714 against:
2715 (A) the entity; or
2716 (B) any control person for the entity;
2717 (viii) discloses any history of criminal proceedings involving any control person for the
2718 entity; and
2719 [(vi)] (ix) includes any information required by the division by rule;
2720 (b) if the applicant is an individual[, the applicant shall provide]:
2721 [(i) (A) a fingerprint card in a form acceptable to the division; and]
2722 [(B) consent to a criminal background check by:]

2723 [(I) the Utah Bureau of Criminal Identification; and]
2724 (i) submit a licensure statement that identifies the entity with which the applicant is
2725 sponsored;
2726 (ii) authorize a criminal background check through the nationwide database accessing:
2727 (A) the Utah Bureau of Criminal Identification, if the nationwide database is able to
2728 obtain information from the Utah Bureau of Criminal Identification; and
2729 [(II)] (B) the Federal Bureau of Investigation;
2730 [(ii)] (iii) submit evidence using a method approved by the division by rule of having
2731 successfully completed approved prelicensing education in accordance with Section
2732 61-2c-204.1 ;
2733 [(iii)] (iv) submit evidence using a method approved by the division by rule of having
2734 successfully passed [a] any required licensing examination in accordance with Section
2735 61-2c-204.1 ; and
2736 [(iv) if the applicant will engage in an activity as a loan originator:]
2737 [(A) the individual's unique identifier;]
2738 [(B) any other evidence required by the division by rule demonstrating that the
2739 individual has submitted the following to the nationwide database:]
2740 [(I) a fingerprint card in a form acceptable to the nationwide database;]
2741 [(II) consent to a criminal background check by:]
2742 [(Aa) the Utah Bureau of Criminal Identification; and]
2743 [(Bb) the Federal Bureau of Investigation; and]
2744 [(III) information requested by the nationwide database regarding personal history and
2745 experience including authorization for the nationwide database and division to obtain:]
2746 [(Aa) an independent credit report obtained from a consumer reporting agency
2747 described in 15 U.S.C. Sec. 1681 et seq.; and]
2748 [(Bb) information related to an administrative, civil, or criminal finding of a
2749 governmental jurisdiction; and]
2750 (v) submit evidence using a method approved by the division by rule of having
2751 successfully registered in the nationwide database, including paying a fee required by the
2752 nationwide database; and
2753 (c) pay to the division:

2754 (i) an application fee established by the division in accordance with Section 63J-1-504 ;
2755 and
2756 (ii) the reasonable expenses incurred by the division in processing the application for
2757 licensure[, including the costs incurred by the division under Subsection (4)].
2758 [ (2) (a) The division shall issue a license to an applicant if the division, with the
2759 concurrence of the commission, finds that the applicant:]
2760 [(i) meets the qualifications of Sections 61-2c-203 and 61-2c-204.1 ; and]
2761 [(ii) complies with this section.]
2762 (2) (a) Upon receiving an application, the division, with the concurrence of the
2763 commission, shall determine whether the applicant:
2764 (i) meets the qualifications for licensure; and
2765 (ii) complies with this section.
2766 (b) If the division, with the concurrence of the commission, determines that an
2767 applicant meets the qualifications for licensure and complies with this section, the division
2768 shall issue the applicant a license.
2769 (c) If the division, with the concurrence of the commission, determines that the
2770 division requires more information to make a determination under Subsection (2)(a), the
2771 division may:
2772 (i) hold the application pending further information about an applicant's criminal
2773 background or history related to adverse administrative action in any jurisdiction; or
2774 (ii) issue a conditional license:
2775 (A) pending the completion of a criminal background check; and
2776 (B) subject to suspension or revocation if the criminal background check reveals that
2777 the applicant did not truthfully or accurately disclose on the licensing application a criminal
2778 history or other history related to adverse administrative action.
2779 [(b)] (3) (a) The commission may delegate to the division the authority to:
2780 (i) review a class or category of application for an initial or renewed license;
2781 (ii) determine whether an applicant meets the [licensing criteria in Sections 61-2c-203
2782 and 61-2c-204.1] qualifications for licensure;
2783 (iii) conduct a necessary hearing on an application; and
2784 (iv) approve or deny a license application without concurrence by the commission.

2785 [(c)] (b) If the commission delegates to the division the authority to approve or deny an
2786 application without concurrence by the commission and the division denies an application for
2787 licensure, the applicant who is denied licensure may petition the commission for review of the
2788 denial.
2789 [(d)] (c) An applicant who is denied licensure under Subsection [(2)] (3)(b) may seek
2790 agency review by the executive director only after the commission reviews the division's denial
2791 of the applicant's application.
2792 [(3)] (d) Subject to Subsection [(2)(d)](3)(c) and in accordance with Title 63G, Chapter
2793 4, Administrative Procedures Act, an applicant who is denied licensure under this chapter may
2794 submit a request for agency review to the executive director within 30 days following the day
2795 on which the commission order denying the licensure is issued.
2796 [(4) (a) The division shall request the Department of Public Safety to complete:]
2797 [(i) for an applicant who will engage in an activity as a loan originator, a criminal
2798 background check by the Utah Bureau of Criminal Identification; or]
2799 [(ii) for an applicant who will not engage in an activity as a loan originator, a Federal
2800 Bureau of Investigation criminal background check through a national criminal history system.]
2801 [(b) An applicant shall pay the cost of:]
2802 [(i) the fingerprinting required by this section; and]
2803 [(ii) the criminal background check required by this section.]
2804 [(c) The funds paid by an applicant for the cost of the criminal background check shall
2805 be nonlapsing.]
2806 Section 51. Section 61-2c-203 is amended to read:
2807 61-2c-203. General qualifications for licensure.
2808 (1) To qualify for licensure under this chapter, [an individual:] a person shall
2809 demonstrate through procedures established by rule made by the division in accordance with
2810 Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
2811 [(a) shall demonstrate:]
2812 [(i)] (a) financial responsibility;
2813 [(ii)] (b) good moral character, honesty, integrity, and truthfulness; and
2814 [(iii)] (c) the competence to transact the business of residential mortgage loans,
2815 including general fitness such as to command the confidence of the community and to warrant

2816 a determination that the [individual] person will operate honestly, fairly, and efficiently within
2817 the purposes of this chapter[;].
2818 [(b) except as provided in Subsection (3), may not have]
2819 (2) If an applicant is an individual, the applicant may not have:
2820 (a) been convicted of, pled guilty to, pled no contest to, pled guilty in a similar manner
2821 to, or resolved by diversion or its equivalent:
2822 (i) a felony involving an act of fraud, dishonesty, a breach of trust, or money
2823 laundering; or
2824 (ii) a felony in the seven years preceding the day on which an application is submitted
2825 to the division;
2826 [(iii) in the 10 years preceding the day on which an application is submitted to the
2827 division of:]
2828 [(A) a felony or class A misdemeanor involving moral turpitude; or]
2829 [(B) a crime in another jurisdiction that is the equivalent of a felony or class A
2830 misdemeanor involving moral turpitude;]
2831 [(iv)] (b) in the five years preceding the day on which an application is submitted to the
2832 division, been convicted of, pled guilty to, pled no contest to, pled guilty in a similar manner
2833 to, or resolved by diversion its equivalent:
2834 [(A)] (i) a class B or class C misdemeanor involving moral turpitude; or
2835 [(B)] (ii) a crime in another jurisdiction that is the equivalent of a class B or class C
2836 misdemeanor involving moral turpitude;
2837 (c) [if the applicant will engage in an activity as a loan originator, may not have] had a
2838 license as a mortgage loan originator revoked by a governmental jurisdiction at any time;
2839 (d) [except as provided in Subsection (3), may not have] had a license or registration
2840 suspended, [revoked,] surrendered, canceled, or denied in the five years preceding the date the
2841 individual applies for licensure if:
2842 (i) the registration or license is issued by this state or another jurisdiction; and
2843 (ii) the suspension, [revocation,] surrender, [probation, fine,] cancellation, or denial is
2844 based on misconduct in a professional capacity that relates to moral character, honesty,
2845 integrity, truthfulness, or the competency to transact the business of residential mortgage loans;
2846 (e) [except as provided in Subsection (3), may not have] been the subject of a bar by

2847 the Securities and Exchange Commission, the New York Stock Exchange, or the National
2848 Association of Securities Dealers within the five years preceding the date the individual applies
2849 for registration; [and] or
2850 (f) [may not have] had a [temporary or] permanent injunction entered against the
2851 individual:
2852 (i) by a court or [licensing] administrative agency; and
2853 (ii) on the basis of:
2854 (A) conduct or a practice involving the business of residential mortgage loans; or
2855 (B) conduct involving fraud, misrepresentation, or deceit.
2856 [(2) To qualify for licensure under this chapter an entity may not have:]
2857 [(a) any of the following individuals in management]
2858 (3) If an applicant is an entity, the applicant may not have a control person who fails to
2859 meet the requirements of Subsection [(1)] (2) for an individual [who will engage in an activity
2860 as a loan originator:] applicant.
2861 [(i) a manager or a managing partner;]
2862 [(ii) a director;]
2863 [(iii) an executive officer; or]
2864 [(iv) an individual occupying a position or performing functions similar to those
2865 described in Subsections (2)(a)(i) through (iii); or]
2866 [(b) a principal lending manager who fails to meet the requirements of Subsection (1)
2867 for an individual who will engage in an activity as a loan originator.]
2868 [(3) (a) Notwithstanding the failure to meet the requirements of Subsections (1)(b)(iii),
2869 (b)(iv), (d), (e), and (f) and except as provided in Subsection (3)(b), the division may permit a
2870 person to be licensed under this chapter if the individual applicant or a person listed in
2871 Subsection (2):]
2872 [(i) fails to meet the requirements of Subsections (1)(b)(iii), (b)(iv), (d), (e), and (f);]
2873 [(ii) otherwise meets the qualifications for licensure; and]
2874 [(iii) provides evidence satisfactory to the division with the concurrence of the
2875 commission that the individual applicant or person described in Subsection (2):]
2876 [(A) is of good moral character;]
2877 [(B) is honest;]

2878 [(C) has integrity;]
2879 [(D) is truthful; and]
2880 [(E) has the competency to transact the business of residential mortgage loans.]
2881 [(b) The division may not license an individual under this Subsection (3) if that
2882 individual will engage in an activity as a loan originator.]
2883 Section 52. Section 61-2c-204.1 is amended to read:
2884 61-2c-204.1. Education providers -- Education requirements -- Examination
2885 requirements.
2886 (1) As used in this section:
2887 (a) "Approved continuing education course" means a course of continuing education
2888 that is approved by the nationwide database.
2889 (b) "Approved prelicensing education course" means a course of prelicensing education
2890 that is approved by the nationwide database.
2891 (2) (a) A person may not provide Utah-specific prelicensing education or Utah-specific
2892 continuing education if that person is not certified by the division under this chapter.
2893 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2894 division shall make rules establishing:
2895 (i) certification criteria and procedures to become a certified education provider; and
2896 (ii) standards of conduct for a certified education provider.
2897 (c) In accordance with the rules described in Subsection (2)(b), the division shall
2898 certify a person to provide [one or more of the following:] the education described in
2899 Subsection (2)(a).
2900 [(i) prelicensing education; or]
2901 [(ii) continuing education.]
2902 (d) [The] (i) Upon request, the division shall make available to the public a list of the
2903 names and addresses of certified education providers either directly or through a third party.
2904 (ii) A person who requests a list under this Subsection (2)(d) shall pay the costs
2905 incurred by the division to make the list available.
2906 (e) In certifying [an] a person as a certified education provider, the division by rule
2907 may:
2908 (i) distinguish between an individual instructor and an entity that provides education;

2909 or
2910 (ii) approve:
2911 (A) Utah-specific prelicensing education; or
2912 (B) Utah-specific continuing education courses.
2913 (3) (a) The division may not:
2914 (i) license an individual under this chapter as a mortgage [officer] loan originator who
2915 has not completed the prelicensing education required by this section:
2916 (A) before taking the one or more licensing [examination] examinations required by
2917 Subsection (4); [and]
2918 (B) in the number of hours, not to exceed 90 hours, required by rule made by the
2919 division in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act[,
2920 except that the division shall require that a person who will engage in an activity as a loan
2921 originator complete at least 20 hours of approved prelicensing education courses that include at
2922 least:]; and
2923 [(I) three hours of federal law and regulation;]
2924 [(II) three hours of ethics that includes instruction on fraud, consumer protection, and
2925 fair lending issues; and]
2926 [(III) two hours of training related to lending standards for the nontraditional mortgage
2927 product marketplace;]
2928 (C) that includes the prelicensing education required by federal licensing regulations;
2929 (ii) subject to Subsection (6), renew a license of an individual who has not completed
2930 the continuing education required by this section and Section 61-2c-205 [; or]:
2931 (A) in the number of hours required by rule made by the division in accordance with
2932 Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
2933 (B) that includes the continuing education required by federal licensing regulations; or
2934 (iii) [the division may not] license an individual under this chapter as a principal
2935 lending manager who has not completed the prelicensing education required by Section
2936 61-2c-206 before taking the licensing examination required by Section 61-2c-206 .
2937 (b) Subject to Subsection (3)(a) and with the concurrence of the division, the
2938 commission shall determine:
2939 (i) except as provided in Subsection 61-2c-206 (1)[(c)](b), the appropriate number of

2940 hours of prelicensing education required to obtain a license;
2941 (ii) the subject matters of the prelicensing education required under this section and
2942 Section 61-2c-206 , including online education or distance learning options;
2943 (iii) the appropriate number of hours of continuing education required to renew a
2944 license[, except that at a minimum the continuing education required for a person who engages
2945 in an activity as a loan originator shall include at least eight hours annually of approved
2946 continuing education courses that include at least:]; and
2947 [(A) three hours of federal law and regulations;]
2948 [(B) two hours of ethics, that include instruction on fraud, consumer protection, and
2949 fair lending issues; and]
2950 [(C) two hours of training related to lending standards for the nontraditional mortgage
2951 product marketplace; and]
2952 (iv) the subject matter of courses the division may accept for continuing education
2953 purposes.
2954 (c) The commission may appoint a committee to make recommendations to the
2955 commission concerning approval of prelicensing education and continuing education courses,
2956 except that the commission shall appoint at least one member to the committee to represent
2957 each association that represents a significant number of individuals licensed under this chapter.
2958 (d) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
2959 Administrative Rulemaking Act, provide for the calculation of continuing education credits,
2960 except that the rules shall be consistent with 12 U.S.C. Sec. 5105.
2961 (4) (a) The division may not license an individual under this chapter unless that
2962 individual first passes [a licensing examination] the one or more licensing examinations that:
2963 (i) are adopted by the division in accordance with Title 63G, Chapter 3, Utah
2964 Administrative Rulemaking Act;
2965 (ii) meet the minimum federal licensing requirements; and
2966 (iii) are administered by an approved examination provider.
2967 (b) The commission, with the concurrence of the division, shall determine the
2968 requirements for:
2969 (i) a licensing examination that at least:
2970 [(A) includes the qualified written test developed by the nationwide database; and]

2971 (A) meet the minimum federal licensing requirements; and
2972 (B) tests knowledge of the:
2973 (I) fundamentals of the English language;
2974 (II) arithmetic;
2975 (III) provisions of this chapter;
2976 (IV) rules adopted under this chapter;
2977 (V) basic residential mortgage principles and practices; and
2978 (VI) any other aspect of Utah law the commission determines is appropriate; and
2979 (ii) a licensing examination required under Section 61-2c-206 that:
2980 [(A) includes the qualified written test developed by the nationwide database; and]
2981 (A) meets the requirements of Subsection (4)(b)(i); and
2982 (B) tests knowledge of the:
2983 (I) advanced residential mortgage principles and practices; and
2984 (II) other aspects of Utah law the commission, with the concurrence of the division,
2985 determines appropriate.
2986 (c) An individual who will engage in an activity as a mortgage loan originator, is not
2987 considered to have passed a licensing examination if that individual has not met the minimum
2988 competence requirements of 12 U.S.C. Sec. 5104(d)(3).
2989 (5) When reasonably practicable, the commission and the division shall make the
2990 [licensing examination, prelicensing education, and continuing education] Utah-specific
2991 education requirements described in this section available electronically through one or more
2992 distance education methods approved by the commission and division.
2993 (6) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2994 the commission, with the concurrence of the division, shall make rules establishing procedures
2995 under which a licensee may be exempted from a Utah-specific continuing education
2996 [requirements] requirement:
2997 (i) for a period not to exceed four years; and
2998 (ii) upon a finding of reasonable cause.
2999 (b) An individual who engages in an activity as a mortgage loan originator may not
3000 under this Subsection (6) be exempted from the [eight hours of] minimum continuing
3001 education required under [Subsection (3)(b)(iii)] federal licensing regulations for an individual

3002 who engages in an activity as a mortgage loan originator.
3003 Section 53. Section 61-2c-205 is amended to read:
3004 61-2c-205. Term of licensure -- Renewal -- Reporting of changes.
3005 (1) (a) A license issued under this chapter [is valid for one year.] expires as follows:
3006 (i) for the calendar year the license is issued:
3007 (A) if the license is issued on or before October 31, the license expires on December 31
3008 of the same calendar year; and
3009 (B) if the license is issued on or after November 1, the license expires on December 31
3010 of the following calendar year; and
3011 (ii) after the December 31 on which a license expires under Subsection (1)(a)(i), a
3012 license expires annually on December 31.
3013 (b) Notwithstanding Subsection (1)(a), the time period of a license may be extended or
3014 shortened by as much as one year to maintain or change a renewal cycle established by rule by
3015 the division.
3016 (2) To renew a license, no later than the date the license expires, a licensee shall in a
3017 manner provided by the division by rule:
3018 [(a) (i) file the renewal form required by the division; and]
3019 (a) file a renewal statement;
3020 [(ii)] (b) furnish the information required by Subsection 61-2c-202 (1);
3021 (c) renew the licensee's registration with the nationwide database, including the
3022 payment of a fee required by the nationwide database;
3023 [(b)] (d) pay a fee to the division established by the division in accordance with Section
3024 63J-1-504 ; and
3025 [(c)] (e) if the licensee is an individual and the individual's license is in active status at
3026 the time of application for renewal, submit proof [using forms approved by the division] of
3027 having completed during the year before application the continuing education required under
3028 Section 61-2c-204.1 .
3029 (3) (a) A licensee under this chapter shall notify the division [using the form required
3030 by the division] in a manner provided by the division by rule within 10 days of the date on
3031 which there is a change in:
3032 (i) a name under which the licensee transacts the business of residential mortgage loans

3033 in this state;
3034 (ii) (A) if the licensee is an entity, the business location of the licensee; or
3035 (B) if the licensee is an individual, the home and business addresses of the individual;
3036 (iii) the principal lending manager of the entity;
3037 (iv) the entity with which an individual licensee is licensed to conduct the business of
3038 residential mortgage loans; or
3039 (v) any other information that is defined as material by rule made by the division.
3040 (b) Failure to notify the division of a change described in Subsection (3)(a) is separate
3041 grounds for disciplinary action against a licensee.
3042 (c) The division may charge a fee established in accordance with Section 63J-1-504 for
3043 processing a change that a licensee is required to report to the division under Subsection (3)(a).
3044 (4) A licensee shall notify the division by sending the division a signed statement
3045 within 10 business days of:
3046 (a) (i) a conviction of a criminal offense;
3047 (ii) the entry of a plea in abeyance to a criminal offense; or
3048 (iii) the potential resolution of a criminal case by:
3049 (A) a diversion agreement; or
3050 (B) any other agreement under which a criminal charge is held in suspense for a period
3051 of time;
3052 (b) filing a personal bankruptcy or bankruptcy of a business that transacts the business
3053 of residential mortgage loans;
3054 (c) the suspension, revocation, surrender, cancellation, or denial of a professional
3055 license or professional registration of the licensee, whether the license or registration is issued
3056 by this state or another jurisdiction; or
3057 (d) the entry of a cease and desist order or a temporary or permanent injunction:
3058 (i) against the licensee by a court or licensing agency; and
3059 (ii) based on:
3060 (A) conduct or a practice involving the business of residential mortgage loans; or
3061 (B) conduct involving fraud, misrepresentation, or deceit.
3062 (5) (a) A license under this chapter expires if the licensee does not apply to renew the
3063 license on or before the expiration date of the license.

3064 (b) [Within 30 calendar days after the expiration date, a] A licensee whose license has
3065 expired may apply to reinstate the expired license, in a manner provided by the division by rule
3066 by:
3067 (i) requesting reinstatement;
3068 [(i)] (ii) paying to the division a renewal fee and a late fee determined by the division
3069 under Section 63J-1-504 ; and
3070 [(ii) if the licensee is an individual and is applying to reinstate a license to active status,
3071 providing proof using forms approved by the division of having completed, during the year
3072 before application, the continuing education required under Section 61-2c-204.1 .]
3073 [(c) After the 30 calendar days described in Subsection (5)(b) and within six months
3074 after the expiration date, a licensee whose license has expired may apply to reinstate an expired
3075 license by:]
3076 [(i) paying a renewal fee and a late fee determined by the division under Section
3077 63J-1-504 ;]
3078 [(ii) if the licensee is an individual and is applying to reinstate a license to active status,
3079 providing proof using forms approved by the division of having completed, during the year
3080 before application, the continuing education required under Section 61-2c-204.1 ; and]
3081 [(iii) in addition to the continuing education described in Subsection (5)(c)(ii),
3082 providing proof of completing an additional 12 hours of continuing education meeting the
3083 requirements of Section 61-2c-204.1 .]
3084 [(d) The division shall issue a license to a licensee whose license expires under this
3085 Subsection (5) for more than six months as if the licensee is a new applicant filing an
3086 application for an original license under Section 61-2c-202 .]
3087 [(e) Notwithstanding Subsection (5)(a), the division may extend the term of a license
3088 that would expire under Subsection (5)(a) except for the extension if:]
3089 [(i) the person complies with the requirements of this section to renew the license; and]
3090 [(ii) at the time of the extension, there is pending under this chapter:]
3091 [(A) the application for renewal of the license; or]
3092 [(B) a disciplinary action.]
3093 [(6) The division may charge a fee established in accordance with Section 63J-1-504
3094 for processing a change that a licensee is required to report to the division under this section.]

3095 (iii) reinstating the licensee's registration with the nationwide database, including the
3096 payment of a fee required by the nationwide database.
3097 Section 54. Section 61-2c-205.1 is amended to read:
3098 61-2c-205.1. Transition to use of nationwide database.
3099 (1) An individual not required to be licensed under this chapter as in effect on
3100 December 31, 2010, who is required to be licensed under this chapter as in effect on January 1,
3101 2011, may not engage in the business of residential mortgage loans on or after January 1, 2011
3102 without holding a license under this chapter.
3103 (2) An individual who applies for a license under this chapter on or after January 1,
3104 2011, shall meet the requirements of this chapter as in effect on January 1, 2011.
3105 (3) (a) This Subsection (3) applies to a licensee who:
3106 (i) will engage in an activity as a mortgage loan originator on or after January 1, 2011;
3107 and
3108 (ii) holds an active license under this chapter on December 31, 2010.
3109 (b) A licensee shall comply with the requirements of this chapter as in effect on
3110 January 1, 2011, by no later than January 1, 2011, in order to hold an active license on or after
3111 January 1, 2011.
3112 (c) The license of a licensee that fails to comply with this section on or before January
3113 1, 2011 becomes inactive on January 1, 2011 until:
3114 (i) the day on which the licensee complies with the requirements of this chapter; or
3115 (ii) the license expires.
3116 (4) (a) A license of an individual who will engage in an activity as a mortgage loan
3117 originator that is inactive on December 31, 2010, terminates as of January 1, 2011 unless that
3118 licensee provides on or before January 1, 2011, evidence satisfactory to the division that the
3119 licensee has complied with the requirements for registration under the nationwide database.
3120 (b) The division may by rule, made in accordance with Title 63G, Chapter 3, Utah
3121 Administrative Rulemaking Act, [proscribe] prescribe:
3122 (i) the "requirements for registration under the nationwide database" described in
3123 Subsection (4)(a);
3124 (ii) the evidence required by this Subsection (4); and
3125 (iii) the procedure for submitting the evidence required by this Subsection (4).

3126 (5) The division may make rules in accordance with Title 63G, Chapter 3, Utah
3127 Administrative Rulemaking Act, providing a process:
3128 (a) that is consistent with this section to transition the licensing of individuals engaged
3129 in the business of residential mortgage loans to the license requirements under this chapter as
3130 in effect on January 1, 2011; or
3131 (b) to suspend a requirement for holding a license under this chapter that is related to
3132 the nationwide database if:
3133 (i) the suspension is related to changes made to [Secure and Fair Enforcement for
3134 Mortgage Licensing, 12 U.S.C. Sec. 5105, et seq.,] federal licensing requirements on or after
3135 January 1, 2009; and
3136 (ii) the suspension ends on or before December 31, 2011.
3137 (6) The division may report or provide recommendations to the Legislature regarding
3138 changes, if any, that could be made to this chapter in response to changes made to the
3139 nationwide database or under [Secure and Fair Enforcement for Mortgage Licensing, 12 U.S.C.
3140 Sec. 5101, et seq.] federal licensing requirements, including changes related to grandfathering.
3141 Section 55. Section 61-2c-206 is amended to read:
3142 61-2c-206. Principal lending manager licenses.
3143 (1) To qualify for licensure as a principal lending manager under this chapter, an
3144 individual shall[, in addition to meeting]:
3145 (a) meet the standards in Section 61-2c-203 [:];
3146 [(a) submit an application on a form approved by the division;]
3147 [(b) pay a fee determined by the division under Section 63J-1-504 ;]
3148 [(c) submit proof of having successfully completed]
3149 (b) successfully complete the following education:
3150 (i) mortgage loan originator prelicensing education as required by federal licensing
3151 regulations; and
3152 (ii) 40 hours of Utah-specific prelicensing education for a principal lending manager
3153 that is approved by the [commission] division under Section 61-2c-204.1 ;
3154 [(d) submit proof of having successfully completed]
3155 (c) successfully complete the following examinations:
3156 (i) the mortgage loan originator licensing examination as approved by the nationwide

3157 database; and
3158 (ii) the principal lending manager licensing examination approved by the commission
3159 under Section 61-2c-204.1 ;
3160 [(e)] (d) submit proof on a form approved by the division of three years of full-time
3161 active experience as a mortgage [officer] loan originator licensed in any state in the five years
3162 preceding the day on which the application is submitted[, or its equivalent as approved by the
3163 commission; and];
3164 (e) submit an application in a manner established by the division by rule;
3165 (f) establish sponsorship with an entity licensed under this chapter;
3166 [(f)] (g) if the individual is not [licensed under this chapter] registered in the
3167 nationwide database as a mortgage loan originator at the time of application, submit to the
3168 criminal background check required by Subsection 61-2c-202 (1)(b)[.]; and
3169 (h) pay a fee determined by the division under Section 63J-1-504 .
3170 (2) A principal lending manager may not:
3171 (a) engage in the business of residential mortgage loans on behalf of more than one
3172 entity at the same time[.]; or
3173 (b) be sponsored by more than one entity at the same time.
3174 Section 56. Section 61-2c-209 is enacted to read:
3175 61-2c-209. Sponsorship -- Affiliation.
3176 (1) (a) The division may not license an individual, and an individual licensed under this
3177 chapter may not conduct the business of residential mortgage loans unless:
3178 (i) if licensed as a mortgage loan originator, the individual:
3179 (A) is sponsored by an entity licensed under this chapter; and
3180 (B) is affiliated with a principal lending manager; or
3181 (ii) if licensed as a principal lending manager, the individual is sponsored by an entity
3182 licensed under this chapter.
3183 (b) The division may not license any entity and an entity licensed under this chapter
3184 may not conduct the business of residential mortgage loans unless the entity:
3185 (i) sponsors a principal lending manager;
3186 (ii) identifies at least one control person for the entity; and
3187 (iii) provides a list of the mortgage loan originators sponsored by the entity.

3188 (2) (a) A mortgage loan originator's license automatically becomes inactive the day on
3189 which:
3190 (i) the mortgage loan originator is not sponsored by an entity licensed under this
3191 chapter;
3192 (ii) the license of the entity with which the mortgage loan originator is sponsored
3193 becomes inactive or terminates;
3194 (iii) the mortgage loan originator is not affiliated with a principal lending manager; or
3195 (iv) the license of the principal lending manager with whom the mortgage loan
3196 originator is affiliated becomes inactive or terminates.
3197 (b) A principal lending manager's license automatically becomes inactive the day on
3198 which:
3199 (i) the principal lending manager is not sponsored by an entity licensed under this
3200 chapter; or
3201 (ii) the license of the entity with which the principal lending manager is sponsored
3202 becomes inactive or terminates.
3203 (c) A entity licensed under this chapter automatically becomes inactive the day on
3204 which the entity's sponsorship with its principal lending manager terminates.
3205 (3) (a) A person whose license is inactive may not transact the business of residential
3206 mortgage loans.
3207 (b) To activate an inactive mortgage loan originator license, an individual shall:
3208 (i) provide evidence that the individual:
3209 (A) is sponsored by an entity that holds an active license under this chapter; and
3210 (B) is affiliated with a principal lending manager who holds an active license under this
3211 chapter; and
3212 (ii) pay a fee to the division set in accordance with Section 63J-1-504 .
3213 (c) To activate an inactive principal lending manager license, an individual shall:
3214 (i) provide evidence that the individual is sponsored by an entity that holds an active
3215 license under this chapter; and
3216 (ii) pay a fee to the division set in accordance with Section 63J-1-504 .
3217 (d) To activate an inactive license held by an entity, an entity shall:
3218 (i) provide evidence of the entity's sponsorship of a principal lending manager; and

3219 (ii) pay a fee to the division set in accordance with Section 63J-1-504 .
3220 (4) (a) A mortgage loan originator shall conduct the business of residential mortgage
3221 loans only:
3222 (i) through the principal lending manager with whom the individual is affiliated; and
3223 (ii) in the business name under which the principal lending manager is authorized by
3224 the division to do business.
3225 (b) An individual licensed under this chapter may not:
3226 (i) engage in the business of residential mortgage loans on behalf of more than one
3227 entity at the same time;
3228 (ii) be sponsored by more than one entity at the same time;
3229 (iii) transact the business of residential mortgage loans for the following at the same
3230 time:
3231 (A) an entity licensed under this chapter; and
3232 (B) an entity that is exempt from licensure under Section 61-2c-105 ; or
3233 (iv) if the individual is a mortgage loan originator, receive consideration for transacting
3234 the business of residential mortgage loans from any person except the principal lending
3235 manager with whom the mortgage loan originator is affiliated.
3236 (c) This Subsection (4) does not restrict the number of:
3237 (i) different lenders a person may use as a funding source for a residential mortgage
3238 loan; or
3239 (ii) entities in which an individual may have an ownership interest, regardless of
3240 whether the entities are:
3241 (A) licensed under this chapter; or
3242 (B) exempt under Section 61-2c-105 .
3243 (5) The division by rule made in accordance with Title 63G, Chapter 3, Utah
3244 Administrative Rulemaking Act, may make rules that:
3245 (a) define what constitutes:
3246 (i) affiliation; or
3247 (ii) sponsorship; and
3248 (b) provide procedures by which:
3249 (i) an individual who is licensed under this chapter may provide evidence of

3250 sponsorship by an entity that is licensed under this chapter;
3251 (ii) a mortgage loan originator may provide evidence of affiliation with a principal
3252 lending manager; and
3253 (iii) an entity licensed under this chapter may:
3254 (A) provide evidence of its sponsorship of a principal lending manager;
3255 (B) identify at least one control person for the entity; and
3256 (C) provide a list of the one or more mortgage loan originators that the entity sponsors.
3257 Section 57. Section 61-2c-301 is amended to read:
3258 61-2c-301. Prohibited conduct -- Violations of the chapter.
3259 (1) A person transacting the business of residential mortgage loans in this state may
3260 not:
3261 (a) give or receive compensation or anything of value in exchange for a referral of
3262 residential mortgage loan business;
3263 (b) charge a fee in connection with a residential mortgage loan transaction:
3264 (i) that is excessive; or
3265 (ii) if the person does not comply with Section 70D-2-305 ;
3266 (c) give or receive compensation or anything of value in exchange for a referral of
3267 settlement or loan closing services related to a residential mortgage loan transaction;
3268 (d) do any of the following to induce a lender to extend credit as part of a residential
3269 mortgage loan transaction:
3270 (i) make a false statement or representation;
3271 (ii) cause false documents to be generated; or
3272 (iii) knowingly permit false information to be submitted by any party;
3273 (e) give or receive compensation or anything of value, or withhold or threaten to
3274 withhold payment of an appraiser fee, to influence the independent judgment of an appraiser in
3275 reaching a value conclusion in a residential mortgage loan transaction, except that it is not a
3276 violation of this section for a licensee to withhold payment because of a bona fide dispute
3277 regarding a failure of the appraiser to comply with the licensing law or the Uniform Standards
3278 of Professional Appraisal Practice;
3279 (f) violate or not comply with:
3280 (i) this chapter;

3281 (ii) an order of the commission or division; or
3282 (iii) a rule made by the division;
3283 (g) fail to respond within the required time period to:
3284 (i) a notice or complaint of the division; or
3285 (ii) a request for information from the division;
3286 (h) make false representations to the division, including in a licensure statement;
3287 (i) for a residential mortgage loan transaction beginning on or after January 1, 2004,
3288 engage in the business of residential mortgage loans with respect to the transaction if the
3289 person also acts in any of the following capacities with respect to the same residential mortgage
3290 loan transaction:
3291 (i) appraiser;
3292 (ii) escrow agent;
3293 (iii) real estate agent;
3294 (iv) general contractor; or
3295 (v) title insurance [agent] producer;
3296 (j) order a title insurance report or hold a title insurance policy unless the person
3297 provides to the title insurer a copy of a valid, current license under this chapter;
3298 (k) engage in unprofessional conduct as defined by rule;
3299 (l) engage in an act or omission in transacting the business of residential mortgage
3300 loans that constitutes dishonesty, fraud, or misrepresentation;
3301 (m) engage in false or misleading advertising;
3302 (n) (i) fail to account for [monies] money received in connection with a residential
3303 mortgage loan;
3304 (ii) use [monies] money for a different purpose from the purpose for which the [monies
3305 are] money is received; or
3306 (iii) except as provided in Subsection (4), retain [monies] money paid for services if
3307 the services are not performed;
3308 (o) fail, within 90 calendar days of a request from a borrower who has paid for an
3309 appraisal, to give a copy of an appraisal ordered and used for a transaction to the borrower;
3310 (p) engage in an act that is performed to:
3311 (i) evade this chapter; or

3312 (ii) assist another person to evade this chapter;
3313 (q) recommend or encourage default, delinquency, or continuation of an existing
3314 default or delinquency, by a mortgage applicant on an existing indebtedness before the closing
3315 of a residential mortgage loan that will refinance all or part of the indebtedness;
3316 (r) in the case of the principal lending manager of an entity or a branch office of an
3317 entity, fail to exercise reasonable supervision over the activities of:
3318 (i) unlicensed staff; and
3319 (ii) a mortgage [officer] loan originator who is [licensed] affiliated with the principal
3320 lending manager;
3321 (s) pay or offer to pay an individual who does not hold a license under this chapter for
3322 work that requires the individual to hold a license under this chapter;
3323 (t) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
3324 (i) provide a title insurance product or service without the approval required by Section
3325 31A-2-405 ; or
3326 (ii) knowingly provide false or misleading information in the statement required by
3327 Subsection 31A-2-405 (2); or
3328 (u) represent to the public that the person can or will perform any act of a mortgage
3329 loan originator if that person is not licensed under this chapter because the person is exempt
3330 under Subsection 61-2c-102 (1)(f)(ii)(A), including through:
3331 (i) advertising;
3332 (ii) a business card;
3333 (iii) [stationary] stationery;
3334 (iv) a brochure;
3335 (v) a sign;
3336 (vi) a rate list; or
3337 (vii) other promotional item.
3338 (2) Whether or not the crime is related to the business of residential mortgage loans, it
3339 is a violation of this chapter for a licensee or a person who is a certified education provider to
3340 do any of the following with respect to a criminal offense that involves moral turpitude:
3341 (a) be convicted;
3342 (b) plead guilty or nolo contendere;

3343 (c) enter a plea in abeyance; or
3344 (d) be subjected to a criminal disposition similar to the ones described in Subsections
3345 (2)(a) through (c).
3346 (3) A principal lending manager does not violate Subsection (1)(r) if:
3347 (a) in contravention of the principal lending manager's written policies and
3348 instructions, an affiliated licensee of the principal lending manager violates:
3349 (i) this chapter; or
3350 (ii) rules made by the division under this chapter;
3351 (b) the principal lending manager established and followed reasonable procedures to
3352 ensure that affiliated licensees receive adequate supervision;
3353 (c) upon learning of a violation by an affiliated licensee, the principal lending manager
3354 attempted to prevent or mitigate the damage;
3355 (d) the principal lending manager did not participate in or ratify the violation by an
3356 affiliated licensee; and
3357 (e) the principal lending manager did not attempt to avoid learning of the violation.
3358 (4) Notwithstanding Subsection (1)(n)(iii), a licensee may, upon compliance with
3359 Section 70D-2-305 , charge a reasonable cancellation fee for work done originating a mortgage
3360 if the mortgage is not closed.
3361 Section 58. Section 61-2c-302 is amended to read:
3362 61-2c-302. Record requirements.
3363 (1) For the time period specified in Subsection (2), a licensee shall make or possess any
3364 record required for that licensee by a rule made by the division.
3365 (2) A licensee shall maintain in its possession a record described in Subsection (1) for
3366 four years from the last to occur of the following:
3367 (a) the final entry on a residential mortgage loan is made by that licensee;
3368 (b) if the residential mortgage loan is serviced by the licensee:
3369 (i) the residential mortgage loan is paid in full; or
3370 (ii) the licensee ceases to service the residential mortgage loan; or
3371 (c) if the residential mortgage loan is not serviced by the licensee, the residential
3372 mortgage loan is closed.
3373 (3) A licensee shall:

3374 (a) make available to the division for inspection and copying during normal business
3375 hours all records required to be maintained under this chapter; and
3376 (b) upon reasonable notice from the division to a licensee, produce all records
3377 described in Subsection (3)(a) that are related to an investigation being conducted by the
3378 division at the division office for inspection and copying by the division.
3379 (4) A licensee who is an entity shall maintain and produce for inspection by the
3380 division a current list of all individuals whose licenses are [affiliated with] sponsored by the
3381 entity.
3382 (5) (a) A licensee who engages in an activity as a mortgage loan originator shall
3383 maintain [and produce for inspection by the division] a report of condition submitted to the
3384 nationwide database as required by 12 U.S.C. Sec. 5104(e) for at least four years from the day
3385 on which the licensee submits the report of condition to the nationwide database.
3386 (b) Upon request by the division, a mortgage loan originator shall produce a report of
3387 condition for inspection by the division.
3388 Section 59. Section 61-2c-401 is amended to read:
3389 61-2c-401. Investigations.
3390 (1) The division may investigate or cause to be investigated the actions of:
3391 (a) (i) a licensee;
3392 (ii) a person required to be licensed under this chapter; or
3393 (iii) the following with respect to an entity that is a licensee or an entity required to be
3394 licensed under this chapter:
3395 (A) a manager;
3396 (B) a managing partner;
3397 (C) a director;
3398 (D) an executive officer; or
3399 (E) an individual who performs a function similar to an individual listed in this
3400 Subsection (1)(a)(iii);
3401 (b) (i) an applicant for licensure or renewal of licensure under this chapter; or
3402 (ii) the following with respect to an entity that has applied for a license or renewal of
3403 licensure under this chapter:
3404 (A) a manager;

3405 (B) a managing partner;
3406 (C) a director;
3407 (D) an executive officer; or
3408 (E) an individual who performs a function similar to an individual listed in this
3409 Subsection (1)(b)(ii); or
3410 (c) [any individual or entity that] a person who transacts the business of residential
3411 mortgage loans within this state.
3412 (2) In conducting investigations, records inspections, and adjudicative proceedings, the
3413 division may:
3414 (a) administer an oath or affirmation;
3415 (b) subpoena witnesses and evidence;
3416 (c) take evidence;
3417 (d) require the production of [books, papers, contracts, records, other documents,] a
3418 record or information relevant to an investigation; and
3419 (e) serve a subpoena by certified mail.
3420 (3) A failure to respond to a request by the division in an investigation authorized
3421 under this chapter is considered as a separate violation of this chapter, including:
3422 (a) failing to respond to a subpoena;
3423 (b) withholding evidence; or
3424 (c) failing to produce [documents or records] a record.
3425 (4) The division may inspect and copy [all records] a record related to the business of
3426 residential mortgage loans by a licensee under this chapter, regardless of whether the [records
3427 are] record is maintained at a business location in Utah, in conducting:
3428 (a) investigations of complaints; or
3429 (b) inspections of the [records] record required to be maintained under:
3430 (i) this chapter; or
3431 (ii) rules adopted by the division under this chapter.
3432 (5) (a) If a licensee maintains [the records] a record required by this chapter and the
3433 rules adopted by the division under this chapter outside Utah, the licensee is responsible for all
3434 reasonable costs, including reasonable travel costs, incurred by the division in inspecting [those
3435 records] the record.

3436 (b) Upon receipt of notification from the division that [records] a record maintained
3437 outside Utah [are] is to be examined in connection with an investigation or an examination, the
3438 licensee shall deposit with the division a deposit of $500 to cover the division's expenses in
3439 connection with the examination of the [records] record.
3440 (c) If the deposit described in Subsection (5)(b) is insufficient to meet the estimated
3441 costs and expenses of examination of the [records] record, the licensee shall make an additional
3442 deposit to cover the estimated costs and expenses of the division.
3443 (d) (i) [All deposits] A deposit under this Subsection (5) shall be deposited in the
3444 General Fund as a dedicated credit to be used by the division under Subsection (5)(a).
3445 (ii) The division, with the concurrence of the executive director, may use [the deposit
3446 monies deposited in the General Fund under this Subsection (5)(d)] a deposit as a dedicated
3447 credit for the records inspection costs under Subsection (5)(a).
3448 (iii) A deposit under this Subsection (5) shall be refunded to the licensee to the extent it
3449 is not used, together with an itemized statement from the division of all amounts it has used.
3450 (e) [All deposits] A deposit under this Subsection (5) [shall be] is nonlapsing.
3451 (6) Failure to deposit with the division a deposit required to cover the costs of
3452 examination of [records] a record that [are] is maintained outside Utah shall result in automatic
3453 suspension of a license until the deposit is made.
3454 (7) (a) A person shall pay the costs incurred by the division to copy a record required
3455 under this chapter, including the costs incurred to copy an electronic record in a universally
3456 readable format.
3457 (b) If a person fails to pay the costs described in Subsection (7)(a) when due, the
3458 person's license or certification is automatically suspended:
3459 (i) beginning the day on which the payment of costs is due; and
3460 (ii) ending the day on which the costs are paid.
3461 Section 60. Section 61-2c-402 is amended to read:
3462 61-2c-402. Disciplinary action.
3463 (1) Subject to the requirements of Section 61-2c-402.1 , the commission, with the
3464 concurrence of the division, may impose a sanction described in Subsection (2) against a
3465 person if the person:
3466 (a) (i) is a licensee or person required to be licensed under this chapter; and

3467 (ii) violates this chapter; or
3468 (b) (i) is a certified education provider or person required to be certified to provide
3469 prelicensing or continuing education under this chapter; and
3470 (ii) violates this chapter.
3471 (2) The commission, with the concurrence of the director, may against a person
3472 described in Subsection (1):
3473 (a) impose an educational requirement;
3474 (b) impose a civil penalty against the individual or entity in an amount not to exceed
3475 the greater of:
3476 (i) [$2,500] $5,000 for each violation; or
3477 (ii) the amount equal to any gain or economic benefit derived from each violation;
3478 (c) deny an application for an original license;
3479 (d) do any of the following to a license under this chapter:
3480 (i) suspend;
3481 (ii) revoke;
3482 (iii) place on probation;
3483 (iv) deny renewal;
3484 (v) deny reinstatement; or
3485 (vi) in the case of a denial [or revocation] of a license or a suspension that extends to
3486 the expiration date of a license, set a waiting period for a person to apply for a license under
3487 this chapter;
3488 (e) issue a cease and desist order;
3489 (f) require the reimbursement of the division of costs incurred by the division related to
3490 the recovery, storage, or destruction of a record that the person disposes of in a manner that
3491 violates this chapter or a rule made under this chapter;
3492 (g) modify a sanction described in Subsections (2)(a) through (f) if the commission
3493 finds that the person complies with court ordered restitution; or
3494 (h) impose any combination of sanctions described in this Subsection (2).
3495 (3) (a) If the commission, with the concurrence of the division, issues an order that
3496 orders a fine or educational requirements as part of a disciplinary action against a person,
3497 including a stipulation and order, the commission shall state in the order the deadline by which

3498 the person shall comply with the fine or education requirements.
3499 (b) If a person fails to comply with a stated deadline:
3500 (i) the person's license or certificate is automatically suspended:
3501 (A) beginning the day specified in the order as the deadline for compliance; and
3502 (B) ending the day on which the person complies in full with the order; and
3503 (ii) if the person fails to pay a fine required by an order, the division may begin a
3504 collection process:
3505 (A) established by the division by rule made in accordance with Title 63G, Chapter 3,
3506 Utah Administrative Rulemaking Act; and
3507 (B) subject to Title 63A, Chapter 8, Office of State Debt Collection.
3508 (4) (a) A person whose license was revoked under this chapter before May 11, 2010,
3509 may request that the revocation be converted to a suspension under this Subsection (4):
3510 (i) if the revocation was not as a result of fraud, misrepresentation, or deceit; and
3511 (ii) by filing a written request with the division.
3512 (b) Upon receipt of a request to convert a revocation under this Subsection (4), the
3513 commission, with the concurrence of the director, shall determine whether to convert the
3514 revocation.
3515 (c) The commission may delegate to the division the authority to make a decision on
3516 whether to convert a revocation.
3517 (d) If the division, acting under Subsection (4)(c), denies a request to convert a
3518 revocation, the person who requests the conversion may appeal the decision in a hearing
3519 conducted by the commission:
3520 (i) after the division denies the request to convert the revocation; and
3521 (ii) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
3522 (e) The commission may delegate to the division or an administrative law judge the
3523 authority to conduct a hearing described in Subsection (4)(d).
3524 Section 61. Section 61-2c-404 is amended to read:
3525 61-2c-404. Civil actions.
3526 (1) (a) A person who violates this chapter is liable for an additional penalty, as
3527 determined by the court, of at least the amount the person received in consequence of a
3528 violation of this chapter as:

3529 (i) commission;
3530 (ii) compensation; or
3531 (iii) profit.
3532 (b) A person aggrieved by a violation of this chapter may:
3533 (i) bring an action for a penalty described in Subsection (1)(a); and
3534 (ii) use a penalty obtained under Subsection (1)(a) for the person's own use and benefit.
3535 (2) A person who is not licensed under this chapter at the time of an act or service that
3536 requires a license under this chapter may not bring an action in court for the recovery of a
3537 commission, fee, or compensation for that act or service.
3538 (3) (a) A mortgage [officer] loan originator may not bring an action in the mortgage
3539 [officer's] loan originator's own name for the recovery of a fee, commission, or compensation
3540 for transacting the business of residential mortgage loans unless the action is brought against
3541 the principal lending manager with whom the mortgage [officer] loan originator is licensed at
3542 the time of the act or service that is the subject of the action.
3543 (b) An action by an entity for the recovery of a fee, commission, or other compensation
3544 shall be brought by:
3545 (i) an entity; or
3546 (ii) the principal lending manager of an entity on behalf of the entity.
3547 (4) A principal lending manager who transacts the business of residential mortgage
3548 loans on the principal lending manager's own behalf may sue in the principal lending manager's
3549 own name for the recovery of a fee, commission, or compensation for transacting the business
3550 of residential mortgage loans.
3551 Section 62. Section 61-2c-501 is amended to read:
3552 61-2c-501. Fund created.
3553 (1) [(a)] There is created a restricted special revenue fund known as the "Residential
3554 Mortgage Loan Education, Research, and Recovery Fund."
3555 [(b) As used in this part, "fund" means the Residential Mortgage Loan Education,
3556 Research, and Recovery Fund.]
3557 (2) The interest earned on the fund shall be deposited into the fund.
3558 (3) [(a)] At the beginning of each [state] fiscal year, the division shall make available
3559 $100,000 [shall remain available] in the fund to satisfy final judgments rendered against a

3560 person licensed under this chapter.
3561 [(b) For purposes of this part, a "judgment" includes a criminal restitution judgment.]
3562 Section 63. Section 61-2c-501.5 is enacted to read:
3563 61-2c-501.5. Definitions.
3564 As used in this part:
3565 (1) "Civil judgment" means a judgment in a civil action that:
3566 (a) is awarded in an action brought against a real estate licensee on the basis of fraud,
3567 misrepresentation, or deceit in a residential mortgage loan transaction; and
3568 (b) awards actual damages.
3569 (2) "Criminal restitution judgment" means a judgment that, in accordance with the
3570 Utah Code of Criminal Procedure, orders criminal restitution to a person and against a real
3571 estate licensee for a criminal offense involving fraud, misrepresentation, or deceit in a
3572 residential mortgage loan transaction.
3573 (3) "Final judgment" means one of the following judgments upon termination of the
3574 proceedings related to the judgment, including appeals:
3575 (a) a civil judgment; or
3576 (b) a criminal restitution judgment.
3577 (4) "Fund" means the Residential Mortgage Loan Education, Research, and Recovery
3578 Fund created in Section 61-2c-501 .
3579 Section 64. Section 61-2c-502 is amended to read:
3580 61-2c-502. Additional license fee.
3581 (1) An individual who applies for or renews a license shall pay, in addition to [the
3582 application or renewal fee] any other fee required under this chapter, a reasonable annual fee:
3583 (a) determined by the division with the concurrence of the commission; and
3584 (b) not to exceed $18.
3585 (2) (a) An entity that applies for or renews an entity license shall pay, in addition to
3586 [the application or renewal fee] any other fee required under this chapter, a reasonable annual
3587 fee:
3588 [(a)] (i) determined by the division with the concurrence of the commission; and
3589 [(b)] (ii) not to exceed $25.
3590 (b) This Subsection (2) applies:

3591 (i) notwithstanding that an entity is operating under an assumed name registered with
3592 the division as required by Subsection 61-2c-201 (9); and
3593 (ii) to each branch office of an entity that is licensed under this chapter.
3594 (3) Notwithstanding Section 13-1-2 , the following shall be paid into the fund to be
3595 used as provided in this part:
3596 (a) a fee provided in this section;
3597 (b) a fee for certifying:
3598 (i) a school as a certified education provider;
3599 (ii) a prelicensing or continuing education course; or
3600 (iii) a prelicensing or continuing education provider as an instructor; and
3601 (c) a civil penalty imposed under this chapter.
3602 (4) If the balance in the fund that is available to satisfy a judgment against a licensee
3603 decreases to less than $100,000, the division may make an additional assessment to a licensee
3604 to maintain the balance available at $100,000 to satisfy judgments.
3605 Section 65. Section 61-2c-503 is amended to read:
3606 61-2c-503. Notice to division -- Judgment against mortgage licensee -- Fraud,
3607 misrepresentation, or deceit -- Verified petition for order directing payment from fund --
3608 Limitations and procedure.
3609 (1) [(a) Subject to Subsection (6), a] A person may bring a claim against the fund if
3610 [the person sends a signed notification to the division at the time the person files an action: (i)
3611 against a licensee; and (ii)]:
3612 (a) the person obtains a final judgment;
3613 (b) the person complies with the requirements under this part;
3614 (c) the person is not complicit in the fraud, misrepresentation, or deceit that is the basis
3615 of the claim; and
3616 (d) the final judgment that is the basis for the claim:
3617 (i) has not been discharged in bankruptcy; and
3618 (ii) when a bankruptcy proceeding is open or commenced during the pendency of the
3619 claim, the person obtains an order from the bankruptcy court declaring the final judgment and
3620 related debt to be nondischargeable.
3621 (2) (a) A person may not bring a claim against the fund for money owed under a civil

3622 judgment unless, within 10 business days of the day on which the person brings the civil action
3623 that results in the civil judgment, the person sends to the division a signed notification alleging
3624 fraud, misrepresentation, or deceit.
3625 (b) Within 30 calendar days [of receipt of the notice described in Subsection (1)(a),] of
3626 the day on which the division receives a notice under Subsection (1), the division may
3627 intervene in the action.
3628 [(c) If a person making a claim against the fund obtains a final judgment in a court of
3629 competent jurisdiction in Utah against a licensee based on fraud, misrepresentation, or deceit in
3630 a residential mortgage loan transaction, the person making the claim may, upon termination of
3631 all proceedings including appeals,]
3632 (3) (a) After obtaining a final judgment, to file a claim against the fund, a person shall:
3633 (i) file a verified petition in the court where the final judgment [was] is entered [for]
3634 seeking an order directing payment from the fund [for] of an amount equal to the uncollected
3635 actual damages [included in the judgment.] owed under the final judgment that are unpaid;
3636 (ii) serve a copy of the verified petition described in Subsection (3)(a)(i) on the
3637 division; and
3638 (iii) file a copy of the affidavit of service of the verified petition with the court.
3639 [(d)] (b) A recovery from the fund may not include:
3640 (i) punitive damages[,];
3641 (ii) attorney fees;
3642 (iii) interest[,]; or
3643 (iv) court costs.
3644 [(e)] (c) Regardless of the number of claimants or number of loans involved in a
3645 transaction, the liability of the fund may not exceed:
3646 (i) $15,000 for a single transaction;
3647 (ii) $45,000 for an individual licensee; or
3648 (iii) $45,000 for an entity.
3649 [(2) A person making a claim against the fund shall:]
3650 [(a) serve a copy of the petition on the division; and]
3651 [(b) file a copy of the affidavit of the service of the petition described in Subsection
3652 (2)(a) with the court.]

3653 [(3) (a) The] (4) A court shall conduct a hearing on [the] a petition [within 30 calendar
3654 days after service] filed under Subsection (3) as scheduled by the court.
3655 [(b) The petitioner shall recover from the fund only if the petitioner shows:]
3656 [(i) that the petitioner is not:]
3657 (5) Subject to Subsection (6), a court may order payment from the fund under this
3658 section only if the person who files the petition shows that the person:
3659 (a) is not:
3660 [(A)] (i) in the case of a civil judgment, the spouse of the judgment debtor; [or]
3661 (ii) in the case of a criminal judgment, the spouse of the criminal defendant; or
3662 [(B) the] (iii) a personal representative of [the spouse of the judgment debtor] an
3663 individual described in Subsection (5)(a)(i) or (ii);
3664 [(ii) that the petitioner] (b) has complied with this chapter;
3665 [(iii) that the petitioner has obtained]
3666 (c) is owed damages under a final judgment that:
3667 (i) is issued by the court in the manner prescribed under this section[, indicating]; and
3668 (ii) indicates the amount of the final judgment awarded;
3669 [(iv) that the petitioner]
3670 (d) has proved the amount still owing on the final judgment [at the date of] on the day
3671 on which the petition is filed;
3672 [(v) (A) that:]
3673 [(I) the petitioner]
3674 (e) (i) (A) has a writ of execution issued upon the final judgment; and
3675 [(II)] (B) has received a return made by the officer executing the writ [has made a
3676 return] showing that no property subject to execution in satisfaction of the final judgment could
3677 be found; [and] or
3678 [(B)] (ii) if execution is levied against the property of the judgment debtor[, that] or
3679 criminal defendant:
3680 [(I) the amount realized was insufficient]
3681 (A) has not realized an amount sufficient to satisfy the final judgment; and
3682 [(II)] (B) is owed a balance [remains] on the final judgment after application of the
3683 amount realized; [and]

3684 [(vi) that the petitioner has:]
3685 [(A)] (f) has made reasonable searches and inquiries to ascertain whether the judgment
3686 debtor or criminal defendant has any interest in property, real or personal, that may satisfy the
3687 final judgment; and
3688 [(B)] (g) has exercised reasonable diligence to secure payment of the final judgment
3689 from the assets of the judgment debtor or criminal defendant.
3690 [(4) If the petitioner] (6) If a person satisfies the court that it is not practicable for the
3691 [petitioner] person to comply with one or more of the requirements in Subsections [(3)(b)(v)
3692 and (3)(b)(vi)] (5)(e) through (g), the court may waive those requirements.
3693 [(5) (a) A judgment that is the basis for a claim against the fund may not have been
3694 discharged in bankruptcy.]
3695 [(b) In the case of a bankruptcy proceeding that is open or that is commenced during
3696 the pendency of the claim, the claimant shall, prior to obtaining a claim against the fund, obtain
3697 an order from the bankruptcy court declaring the judgment and debt to be nondischargeable.]
3698 [(6) A person may not bring a claim against the fund if the person is substantially
3699 complicit in the fraud, misrepresentation, or deceit that is the basis of the claim.]
3700 Section 66. Section 61-2c-505 is amended to read:
3701 61-2c-505. Court determination and order.
3702 If the court determines that a claim should be levied against the portion of the fund
3703 allocated to carry out [the provisions of] this chapter, the court shall enter an order requiring
3704 the division to pay from the fund the portion of [the petitioner's] a final judgment that is
3705 payable from the fund under Section 61-2c-503 .
3706 Section 67. Section 61-2c-507 is amended to read:
3707 61-2c-507. Division subrogated -- Authority to revoke license.
3708 (1) If the division pays a [judgment creditor] a person from the fund in accordance with
3709 this part:
3710 (a) the division is subrogated to the rights of [the judgment creditor] that person for the
3711 amounts paid out of the fund; and
3712 (b) any amount and interest recovered by the division shall be deposited in the fund.
3713 (2) (a) Subject to Subsection (2)(b), the license of a licensee for whom payment from
3714 the fund is made under this part is automatically revoked as of the earlier of the day on which:

3715 (i) the division is ordered by a court to pay from the fund; or
3716 (ii) the division pays from the fund.
3717 (b) (i) A person whose license is revoked under Subsection (2)(a) may appeal the
3718 revocation in a hearing conducted by the commission:
3719 (A) after the revocation; and
3720 (B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
3721 (ii) The commission may delegate:
3722 (A) to the division or an administrative law judge the authority to conduct a hearing
3723 described in Subsection (2)(b)(i); or
3724 (B) to the division the authority to make a decision on whether relief from a revocation
3725 should be granted.
3726 (3) Unless the revocation is not upheld after a hearing described in Subsection (2)(b), a
3727 licensee whose license is revoked pursuant to Subsection (2) may not apply for a new license
3728 until the licensee pays into the fund:
3729 (a) the amount paid out of the fund on behalf of the licensee; and
3730 (b) interest at a rate determined by the division with the concurrence of the
3731 commission.
3732 Section 68. Section 61-2f-101 is enacted to read:
3733 CHAPTER 2f. REAL ESTATE LICENSING AND PRACTICES ACT
3734 Part 1. General Provisions
3735 61-2f-101. Title.
3736 This chapter is known as the "Real Estate Licensing and Practices Act."
3737 Section 69. Section 61-2f-102 , which is renumbered from Section 61-2-2 is
3738 renumbered and amended to read:
3739 [61-2-2]. 61-2f-102. Definitions.
3740 As used in this chapter:
3741 (1) "Associate [real estate broker" and "associate] broker" means [any person] an
3742 individual who is:
3743 (a) employed or engaged as an independent contractor by or on behalf of a [licensed]
3744 principal [real estate] broker to perform [any] an act set out in Subsection [(12)] (14) for
3745 valuable consideration[, who has qualified]; and

3746 (b) licensed under this chapter as [a principal real estate] an associate broker.
3747 (2) "Branch office" means a principal broker's real estate brokerage office [other than]
3748 that is not the principal broker's main office.
3749 (3) "Commission" means the Real Estate Commission established under this chapter.
3750 (4) "Concurrence" means the entities given a concurring role must jointly agree for
3751 action to be taken.
3752 (5) "Condominium[" or "condominium] unit" is as defined in Section 57-8-3 .
3753 (6) "Condominium homeowners' association" means [all of] the condominium unit
3754 owners acting as a group in accordance with declarations and bylaws.
3755 (7) (a) "Condominium hotel" means one or more condominium units that are operated
3756 as a hotel.
3757 (b) "Condominium hotel" does not mean a hotel consisting of condominium units, all
3758 of which are owned by a single entity.
3759 (8) "Director" means the director of the Division of Real Estate.
3760 (9) "Division" means the Division of Real Estate.
3761 (10) "Entity" means:
3762 (a) a corporation;
3763 (b) a partnership;
3764 (c) a limited liability company;
3765 (d) a company;
3766 (e) an association;
3767 (f) a joint venture;
3768 (g) a business trust;
3769 (h) a trust; or
3770 (i) any organization similar to an entity described in Subsections (10)(a) through (h).
3771 [(10)] (11) "Executive director" means the director of the Department of Commerce.
3772 [(11)] (12) "Main office" means the address which a principal broker designates with
3773 the division as the principal broker's primary brokerage office.
3774 (13) "Person" means an individual or entity.
3775 [(12)] (14) "Principal [real estate broker" and "principal] broker" means [any person]
3776 an individual who:

3777 (a) (i) [who] sells or lists real estate for sale[,] with the expectation of receiving
3778 valuable consideration;
3779 (ii) buys, exchanges, or auctions real estate, options on real estate, or improvements on
3780 real estate with the expectation of receiving valuable consideration; or
3781 [(ii)] (iii) who advertises, offers, attempts, or otherwise holds [himself] the individual
3782 out to be engaged in the business described in Subsection [(12)(a)(i)] (14)(a)(i) or (ii);
3783 (b) is employed by or on behalf of the owner of real estate or by a prospective
3784 purchaser of real estate [who performs any of the acts] and performs an act described in
3785 Subsection [(12)] (14)(a), whether the [person's] individual's compensation is at a stated salary,
3786 a commission basis, upon a salary and commission basis, or otherwise;
3787 (c) [who,] (i) with the expectation of receiving valuable consideration, manages
3788 property owned by another person; or [who]
3789 (ii) advertises or otherwise holds [himself] the individual out to be engaged in property
3790 management;
3791 (d) [who,] with the expectation of receiving valuable consideration, assists or directs in
3792 the procurement of prospects for or the negotiation of [the transactions] a transaction listed in
3793 Subsections [(12)] (14)(a) and (c); [and]
3794 (e) except for [mortgage lenders, title insurance agents, and their employees, who] a
3795 mortgage lender, title insurance producer, or an employee of a mortgage lender or title
3796 insurance producer, assists or directs in the closing of [any] a real estate transaction with the
3797 expectation of receiving valuable consideration[.]; and
3798 (f) is licensed as a principal broker under this chapter.
3799 [(13)] (15) (a) "Property management" means engaging in, with the expectation of
3800 receiving valuable consideration, the management of [property] real estate owned by another
3801 person or advertising or otherwise claiming to be engaged in property management by:
3802 (i) advertising for, arranging, negotiating, offering, or otherwise attempting or
3803 participating in a transaction calculated to secure the rental or leasing of real estate;
3804 (ii) collecting, agreeing, offering, or otherwise attempting to collect rent for the real
3805 estate and accounting for and disbursing the money collected; or
3806 (iii) authorizing expenditures for repairs to the real estate.
3807 (b) "Property management" does not include:

3808 (i) hotel or motel management;
3809 (ii) rental of tourist accommodations, including hotels, motels, tourist homes,
3810 condominiums, condominium hotels, mobile home park accommodations, campgrounds, or
3811 similar public accommodations for [any] a period of less than 30 consecutive days, and the
3812 management activities associated with these rentals; or
3813 (iii) the leasing or management of surface or subsurface minerals or oil and gas
3814 interests, if the leasing or management is separate from a sale or lease of the surface estate.
3815 [(14)] (16) "Real estate" includes leaseholds and business opportunities involving real
3816 property.
3817 [(15) "Real estate sales agent" and "sales agent" mean any person affiliated with a
3818 licensed principal real estate broker, either as an independent contractor or an employee as
3819 provided in Section 61-2-25 , to perform for valuable consideration any act set out in
3820 Subsection (12).]
3821 [(16)] (17) (a) "Regular salaried employee" means an individual who performs a
3822 service for wages or other remuneration, whose employer withholds federal employment taxes
3823 under a contract of hire, written or oral, express or implied.
3824 (b) "Regular salaried employee" does not include [a person] an individual who
3825 performs services on a project-by-project basis or on a commission basis.
3826 [(17)] (18) "Reinstatement" means restoring a license that has expired or has been
3827 suspended.
3828 [(18)] (19) "Reissuance" means the process by which a licensee may obtain a license
3829 following revocation of the license.
3830 [(19)] (20) "Renewal" means extending a license for an additional licensing period on
3831 or before the date the license expires.
3832 (21) "Sales agent" means an individual who is:
3833 (a) affiliated with a principal broker, either as an independent contractor or an
3834 employee as provided in Section 61-2f-303 , to perform for valuable consideration an act
3835 described in Subsection (14); and
3836 (b) licensed under this chapter as a sales agent.
3837 [(20)] (22) (a) "Undivided fractionalized long-term estate" means an ownership interest
3838 in real property by two or more persons that is [a]:

3839 (i) a tenancy in common; or
3840 (ii) any other legal form of undivided estate in real property including:
3841 (A) a fee estate;
3842 (B) a life estate; or
3843 (C) other long-term estate.
3844 (b) "Undivided fractionalized long-term estate" does not include a joint tenancy.
3845 Section 70. Section 61-2f-103 , which is renumbered from Section 61-2-5.5 is
3846 renumbered and amended to read:
3847 [61-2-5.5]. 61-2f-103. Real Estate Commission.
3848 (1) There is created within the division a Real Estate Commission. The commission
3849 shall:
3850 (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3851 make rules for the administration of this chapter that are not inconsistent with this chapter,
3852 including:
3853 (i) licensing of:
3854 (A) a principal [brokers;] broker;
3855 (B) associate brokers; and
3856 (C) a sales [agents] agent;
3857 [(D) real estate companies; and]
3858 (ii) registration of:
3859 (A) an entity; and
3860 [(E)] (B) a branch [offices] office;
3861 [(ii)] (iii) prelicensing and postlicensing education curricula;
3862 [(iii)] (iv) examination procedures;
3863 [(iv)] (v) the certification and conduct of:
3864 (A) a real estate [schools] school;
3865 (B) a course [providers; and] provider; or
3866 [(C) instructors;]
3867 (C) an instructor;
3868 [(v)] (vi) proper handling of [funds] money received by [real estate licensees] a
3869 licensee under this chapter;

3870 [(vi)] (vii) brokerage office procedures and recordkeeping requirements;
3871 [(vii)] (viii) property management;
3872 [(viii)] (ix) standards of conduct for [real estate licensees] a licensee under this chapter;
3873 [(ix) rules] (x) a rule made under Section [ 61-2-26 ] 61-2f-307 regarding an undivided
3874 fractionalized long-term estate; and
3875 [(x)] (xi) if the commission determines necessary, [rules] a rule as provided in
3876 Subsection [ 61-2-20 ] 61-2f-306 (3) regarding a legal [forms] form;
3877 (b) establish, with the concurrence of the division, [all fees as] a fee provided for in
3878 this chapter [and Title 61, Chapter 2a, Real Estate Recovery Fund Act], except a fee imposed
3879 under Part 5, Real Estate Education, Research, and Recovery Fund Act;
3880 (c) conduct [all] an administrative [hearings] hearing not delegated by the commission
3881 to an administrative law judge or the division relating to the:
3882 (i) licensing of [any] an applicant;
3883 (ii) conduct of [any] a licensee;
3884 (iii) the certification or conduct of [any] a real estate school, course provider, or
3885 instructor regulated under this chapter; or
3886 (iv) violation of this chapter by any person;
3887 (d) with the concurrence of the director, impose [sanctions] a sanction as provided in
3888 Section [ 61-2-12 ] 61-2f-404 ;
3889 (e) advise the director on the administration and enforcement of [any matters] a matter
3890 affecting the division and the real estate sales and property management industries;
3891 (f) advise the director on matters affecting the division budget;
3892 (g) advise and assist the director in conducting real estate seminars; and
3893 (h) perform other duties as provided by[: (i)] this chapter[; and].
3894 [(ii) Title 61, Chapter 2a, Real Estate Recovery Fund Act.]
3895 (2) (a) The commission shall be comprised of five members appointed by the governor
3896 and approved by the Senate.
3897 (b) Four of the commission members shall:
3898 (i) have at least five years' experience in the real estate business; and
3899 (ii) hold an active principal broker, associate broker, or sales agent license.
3900 (c) One commission member shall be a member of the general public.

3901 (d) [No more than one] The governor may not appoint a commission member
3902 described in Subsection (2)(b) [shall] who, at the time of appointment [reside in any given],
3903 resides in the same county in the state as another commission member.
3904 (e) At least one commission member described in Subsection (2)(b) shall at the time of
3905 an appointment reside in a county that is not a county of the first or second class.
3906 (3) (a) Except as required by Subsection (3)(b), as terms of current commission
3907 members expire, the governor shall appoint each new member or reappointed member to a
3908 four-year term ending June 30.
3909 (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
3910 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
3911 commission members are staggered so that approximately half of the commission is appointed
3912 every two years.
3913 (c) Upon the expiration of the term of a member of the commission, the member of the
3914 commission shall continue to hold office until a successor is appointed and qualified.
3915 (d) A commission member may not serve more than two consecutive terms.
3916 (e) Members of the commission shall annually select one member to serve as chair.
3917 (4) When a vacancy occurs in the membership for any reason, [the replacement shall be
3918 appointed] the governor, with the consent of the Senate shall appoint a replacement for the
3919 unexpired term.
3920 (5) (a) A member may not receive compensation or benefits for the member's services,
3921 but may receive per diem and expenses incurred in the performance of the member's official
3922 duties at the rates established by the Division of Finance under Sections 63A-3-106 and
3923 63A-3-107 .
3924 (b) A member may decline to receive per diem and expenses for the member's service.
3925 (6) (a) The commission shall meet at least monthly.
3926 (b) The director may call additional meetings:
3927 (i) at the director's discretion;
3928 (ii) upon the request of the chair; or
3929 (iii) upon the written request of three or more commission members.
3930 (7) Three members of the commission constitute a quorum for the transaction of
3931 business.

3932 Section 71. Section 61-2f-104 , which is renumbered from Section 61-2-14 is
3933 renumbered and amended to read:
3934 [61-2-14]. 61-2f-104. List of licensees, registrants, and certificate holders to be
3935 available.
3936 [The] (1) Upon request, the division shall make available [at reasonable cost] a list of
3937 the names and addresses of [all] the persons licensed, registered, or certified by it under this
3938 chapter either directly or through a third party.
3939 (2) A person who requests a list under Subsection (1) shall pay the costs incurred by
3940 the division to make the list available.
3941 Section 72. Section 61-2f-105 is enacted to read:
3942 61-2f-105. Fees.
3943 (1) In addition to when expressly authorized in another provision of this chapter, the
3944 division may charge and collect reasonable fees determined by the commission with the
3945 concurrence of the division under Section 63J-1-504 to cover the costs for:
3946 (a) issuing a new or duplicate license;
3947 (b) registering an entity or branch office;
3948 (c) certifying a real estate school, course, or instructor;
3949 (d) providing a history of a license, registration, or certification; and
3950 (e) producing a certified copy of an official document, order, or other paper or
3951 transcript; and
3952 (f) other duties required by this chapter.
3953 (2) Notwithstanding Section 13-1-2 , a fee collected under Subsection (1)(c) shall be
3954 deposited in the Real Estate Education, Research, and Recovery Fund.
3955 (3) If a person pays a fee or costs to the division with a negotiable instrument and the
3956 negotiable instrument is not honored for payment:
3957 (a) the transaction for which the payment is submitted is voidable by the division;
3958 (b) the division may reverse the transaction if payment of the applicable fee or costs is
3959 not received in full; and
3960 (c) the person's license, certification, or registration is automatically suspended:
3961 (i) beginning the day on which the payment is due; and
3962 (ii) ending the day on which payment is made in full.

3963 (4) (a) A fee under this chapter is in lieu of all other license fees or assessments that
3964 might otherwise be imposed or charged by the state or any of its political subdivisions upon, or
3965 as a condition of, the privilege of conducting the business regulated by this chapter, except that
3966 a political subdivision within the state may charge a business license fee on a principal broker
3967 if the principal broker maintains a place of business within the jurisdiction of the political
3968 subdivision.
3969 (b) Unless otherwise exempt, a licensee under this chapter is subject to the taxes
3970 imposed under Title 59, Revenue and Taxation.
3971 Section 73. Section 61-2f-106 , which is renumbered from Section 61-2-22 is
3972 renumbered and amended to read:
3973 [61-2-22]. 61-2f-106. Severability.
3974 If [any] a provision of this chapter, or the application of [any] a provision to any person
3975 or circumstance, is held invalid, the remainder of this chapter [shall not be affected thereby]
3976 shall be given effect without the invalid provision or application. The provisions of this
3977 provision are severable.
3978 Section 74. Section 61-2f-201 , which is renumbered from Section 61-2-1 is
3979 renumbered and amended to read:
3980 Part 2. Licensure, Registration, and Certification
3981 [61-2-1]. 61-2f-201. License required.
3982 (1) [It is unlawful for any person to] Unless a person is licensed under this chapter, it is
3983 unlawful for the person to do the following with respect to real estate located in this state:
3984 (a) engage in the business[,] of a principal broker, associate broker, or sales agent;
3985 (b) act in the capacity of[,] a principal broker, associate broker, or sales agent;
3986 (c) advertise[,] or assume to act as a principal [real estate] broker, associate [real
3987 estate] broker, or a [real estate] sales agent [within this state without a license obtained under
3988 this chapter].
3989 [(2) It is unlawful for any person outside the state to engage in the business, act in the
3990 capacity of, advertise, or assume to act as a principal real estate broker, associate real estate
3991 broker, or a real estate sales agent with respect to real estate located within the state without a
3992 license obtained under this chapter.]
3993 (2) Except as provided in Section 61-2f-202 , an individual is required to be licensed as

3994 a principal broker, associate broker, or a sales agent if the individual performs, offers to
3995 perform, or attempts to perform one act for valuable consideration of:
3996 (a) buying, selling, leasing, managing, or exchanging real estate for another person; or
3997 (b) offering for another person to buy, sell, lease, manage, or exchange real estate.
3998 Section 75. Section 61-2f-202 , which is renumbered from Section 61-2-3 is
3999 renumbered and amended to read:
4000 [61-2-3]. 61-2f-202. Exempt persons and transactions.
4001 (1) (a) Except as provided in Subsection (1)(b), a license under this chapter is not
4002 required for:
4003 (i) [a person] an individual who as owner or lessor performs [the acts] an act described
4004 in Subsection [ 61-2-2 (12)] 61-2f-102 (14) with reference to [property] real estate owned or
4005 leased by that [person] individual;
4006 (ii) a regular salaried employee of the owner or lessor of real estate who, with reference
4007 to nonresidential real estate owned or leased by the employer, performs [the acts enumerated in
4008 Subsections 61-2-2 (12)(a) and (b)] an act described in Subsection 61-2f-102 (14)(a) or (b);
4009 (iii) a regular salaried employee of the owner of real estate who performs property
4010 management services with reference to real estate owned by the employer, except that the
4011 employee may only manage [property] real estate for one employer;
4012 (iv) [a person] an individual who performs property management services for the
4013 apartments at which that [person] individual resides in exchange for free or reduced rent on
4014 that [person's] individual's apartment;
4015 (v) a regular salaried employee of a condominium homeowners' association who
4016 manages real [property] estate subject to the declaration of condominium that established the
4017 condominium homeowners' association, except that the employee may only manage [property]
4018 real estate for one condominium homeowners' association; and
4019 (vi) a regular salaried employee of a licensed property management company who
4020 performs support services, as prescribed by rule, for the property management company.
4021 (b) Subsection (1)(a) does not exempt from licensing:
4022 (i) an employee engaged in the sale of [properties] real estate regulated under:
4023 (A) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act; and
4024 (B) Title 57, Chapter 19, Timeshare and Camp Resort Act;

4025 (ii) an employee engaged in the sale of cooperative interests regulated under Title 57,
4026 Chapter 23, Real Estate Cooperative Marketing Act; or
4027 (iii) [a person] an individual whose interest as an owner or lessor is obtained by that
4028 [person] individual or transferred to that [person] individual for the purpose of evading the
4029 application of this chapter, and not for [any other] another legitimate business reason.
4030 (2) A license under this chapter is not required for:
4031 (a) an isolated transaction by [a person] an individual holding a duly executed power of
4032 attorney from [the] an owner;
4033 (b) services rendered by an attorney in performing the attorney's duties as an attorney;
4034 (c) a receiver, trustee in bankruptcy, administrator, executor, or [a person] an
4035 individual acting under order of [any] a court;
4036 (d) a trustee or employee of a trustee under a deed of trust or a will;
4037 (e) a public utility, officer of a public utility, or regular salaried employee of a public
4038 utility, unless performance of [any of the acts set out] an act described in Subsection
4039 [ 61-2-2 (12)] 61-2f-102 (14) is in connection with the sale, purchase, lease, or other disposition
4040 of real estate or investment in real estate unrelated to the principal business activity of that
4041 public utility;
4042 (f) a regular salaried employee or authorized agent working under the oversight of the
4043 Department of Transportation when performing an act on behalf of the Department of
4044 Transportation in connection with one or more of the following:
4045 (i) the acquisition of real [property] estate pursuant to Section 72-5-103 ;
4046 (ii) the disposal of real [property] estate pursuant to Section 72-5-111 ;
4047 (iii) services that constitute property management; or
4048 (iv) the leasing of real [property;] estate; and
4049 (g) a regular salaried employee of a county, city, or town when performing an act on
4050 behalf of the county, city, or town:
4051 (i) in accordance with:
4052 (A) if a regular salaried employee of a city or town:
4053 (I) Title 10, Utah Municipal Code; or
4054 (II) Title 11, Cities, Counties, and Local Taxing Units; and
4055 (B) if a regular salaried employee of a county:

4056 (I) Title 11, Cities, Counties, and Local Taxing Units; and
4057 (II) Title 17, Counties; and
4058 (ii) in connection with one or more of the following:
4059 (A) the acquisition of real [property] estate, including by eminent domain;
4060 (B) the disposal of real [property] estate;
4061 (C) services that constitute property management; or
4062 (D) the leasing of real [property] estate.
4063 (3) A license under this chapter is not required for [a person] an individual registered to
4064 act as a broker-dealer, agent, or investment adviser under the Utah and federal securities laws
4065 in the sale or the offer for sale of real estate if:
4066 (a) (i) the real estate is a necessary element of a "security" as that term is defined by the
4067 Securities Act of 1933 and the Securities Exchange Act of 1934; and
4068 (ii) the security is registered for sale in accordance with:
4069 (A) [pursuant to] the Securities Act of 1933; or
4070 (B) [by] Title 61, Chapter 1, Utah Uniform Securities Act; or
4071 (b) (i) it is a transaction in a security for which a Form D, described in 17 C.F.R. Sec.
4072 239.500, has been filed with the Securities and Exchange Commission pursuant to Regulation
4073 D, Rule 506, 17 C.F.R. Sec. 230.506; and
4074 (ii) the selling agent and the purchaser are not residents of this state.
4075 Section 76. Section 61-2f-203 , which is renumbered from Section 61-2-6 is
4076 renumbered and amended to read:
4077 [61-2-6]. 61-2f-203. Licensing requirements.
4078 (1) (a) Except as provided in Subsection (5), the commission shall determine the
4079 qualifications and requirements of an applicant for:
4080 (i) a principal broker license;
4081 (ii) an associate broker license; or
4082 (iii) a sales agent license.
4083 (b) The division, with the concurrence of the commission, shall require and pass upon
4084 proof necessary to determine the honesty, integrity, truthfulness, reputation, and competency of
4085 each applicant for an initial license or for renewal of an existing license.
4086 (c) (i) The division, with the concurrence of the commission, shall require an applicant

4087 for:
4088 (A) a sales agent license to complete an approved educational program consisting of
4089 the number of hours designated by rule made by the commission with the concurrence of the
4090 division, except that the rule may not require less than 120 hours; and
4091 (B) an associate broker or a principal broker license to complete an approved
4092 educational program consisting of the number of hours designated by rule made by the
4093 commission with the concurrence of the division, except that the rule may not require less than
4094 120 hours.
4095 (ii) An hour required by this section means 50 minutes of instruction in each 60
4096 minutes.
4097 (iii) The maximum number of program hours available to an individual is [10] eight
4098 hours per day.
4099 (d) The division, with the concurrence of the commission, shall require the applicant to
4100 pass an examination approved by the commission covering:
4101 (i) the fundamentals of:
4102 (A) the English language;
4103 (B) arithmetic;
4104 (C) bookkeeping; and
4105 (D) real estate principles and practices;
4106 (ii) the provisions of this chapter;
4107 (iii) the rules established by the commission; and
4108 (iv) any other aspect of Utah real estate license law considered appropriate.
4109 (e) (i) Three years' full-time experience as a [real estate] sales agent or its equivalent is
4110 required before an applicant may apply for, and secure a principal broker or associate broker
4111 license in this state.
4112 (ii) The commission shall establish by rule, made in accordance with Title 63G,
4113 Chapter 3, Utah Administrative Rulemaking Act, the criteria by which the commission will
4114 accept experience or special education in similar fields of business in lieu of the three years'
4115 experience.
4116 (2) (a) The division, with the concurrence of the commission, may require an applicant
4117 to furnish a sworn statement setting forth evidence satisfactory to the division of the applicant's

4118 reputation and competency as set forth by rule.
4119 (b) The division shall require an applicant to provide the applicant's Social Security
4120 number, which is a private record under Subsection 63G-2-302 (1)(h).
4121 (3) (a) [A nonresident principal broker may be licensed in this state by complying] An
4122 individual who is not a resident of this state may be licensed in this state if the person complies
4123 with all the provisions of this chapter [except that of residency].
4124 (b) [A nonresident] An individual who is not a resident of this state may be licensed as
4125 an associate broker or sales agent [may become licensed] in this state by:
4126 (i) complying with all the provisions of this chapter [except that of residency]; and
4127 (ii) being employed or engaged as an independent contractor by or on behalf of a
4128 [nonresident or resident] principal broker who is licensed in this state, regardless of whether
4129 the principal broker is a resident of this state.
4130 (4) (a) Except as provided in Subsection [ 61-2-9 ] 61-2f-204 (1)(e)[(iv)](vi), the division
4131 and commission shall treat an application to be relicensed of an applicant whose real estate
4132 license is revoked as an original application.
4133 (b) In the case of an applicant for a new license as a principal broker or associate
4134 broker, the applicant is not entitled to credit for experience gained before the revocation of a
4135 real estate license.
4136 (5) (a) Notwithstanding Subsection (1), the commission may delegate to the division
4137 the authority to:
4138 (i) review a class or category of applications for initial or renewed licenses;
4139 (ii) determine whether an applicant meets the licensing criteria in Subsection (1); and
4140 (iii) approve or deny a license application without concurrence by the commission.
4141 (b) (i) If the commission delegates to the division the authority to approve or deny an
4142 application without concurrence by the commission and the division denies an application for
4143 licensure, the applicant who is denied licensure may petition the commission for review of the
4144 denial of licensure.
4145 (ii) An applicant who is denied licensure pursuant to this Subsection (5) may seek
4146 agency review by the executive director only after the commission has reviewed the division's
4147 denial of the applicant's application.
4148 Section 77. Section 61-2f-204 , which is renumbered from Section 61-2-9 is

4149 renumbered and amended to read:
4150 [61-2-9]. 61-2f-204. Licensing fees and procedures -- Renewal fees and
4151 procedures.
4152 (1) (a) Upon filing an application for [a principal broker, associate broker, or sales
4153 agent license examination] an examination for a license under this chapter, the applicant shall
4154 pay a nonrefundable fee as determined by the commission with the concurrence of the division
4155 under Section 63J-1-504 for admission to the examination.
4156 (b) [A] An applicant for a principal broker, associate broker, or sales agent [applicant]
4157 license shall pay a nonrefundable fee as determined by the commission with the concurrence of
4158 the division under Section 63J-1-504 for issuance of an initial license or license renewal.
4159 (c) A license issued under this Subsection (1) shall be issued for a period of not less
4160 than two years as determined by the division with the concurrence of the commission.
4161 (d) (i) Any of the following applicants shall comply with this Subsection (1)(d):
4162 (A) a new sales agent applicant; [or]
4163 (B) a principal broker applicant[.]; or
4164 (C) an associate broker applicant.
4165 (ii) An applicant described in this Subsection (1)(d) shall:
4166 (A) submit fingerprint cards in a form acceptable to the division at the time the license
4167 application is filed; and
4168 (B) consent to a criminal background check by the Utah Bureau of Criminal
4169 Identification and the Federal Bureau of Investigation regarding the application.
4170 (iii) The division shall request the Department of Public Safety to complete a Federal
4171 Bureau of Investigation criminal background check for each applicant described in this
4172 Subsection (1)(d) through the national criminal history system or any successor system.
4173 (iv) The applicant shall pay the cost of the criminal background check and the
4174 fingerprinting.
4175 (v) [Monies] Money paid to the division by an applicant for the cost of the criminal
4176 background check [are] is nonlapsing.
4177 (e) (i) A license issued under Subsection (1)(d) is conditional, pending completion of
4178 the criminal background check. [If]
4179 (ii) A license is immediately and automatically revoked if the criminal background

4180 check discloses the applicant fails to accurately disclose a criminal history[, the license shall be
4181 immediately and automatically revoked.] involving:
4182 (A) the real estate industry;
4183 (B) fraud;
4184 (C) misrepresentation; or
4185 (D) deceit.
4186 (iii) If a criminal background check discloses that an applicant fails to accurately
4187 disclose a criminal history other than one described in Subsection (1)(e)(ii), the division:
4188 (A) shall review the application; and
4189 (B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
4190 Utah Administrative Rulemaking Act, may:
4191 (I) place a condition on a license;
4192 (II) place a restriction on a license;
4193 (III) revoke a license; or
4194 (IV) refer the application to the commission for a decision.
4195 [(ii)] (iv) A person whose conditional license is automatically revoked under
4196 Subsection (1)(e)[(i)](ii) or whose license is conditioned, restricted, or revoked under
4197 Subsection (1)(e)(iii) may have a [post-revocation] hearing after the action is taken to challenge
4198 the [revocation] action. The hearing shall be conducted in accordance with Title 63G, Chapter
4199 4, Administrative Procedures Act.
4200 [(iii)] (v) The [division] director shall designate one of the following to act as the
4201 presiding officer in a [postrevocation] hearing described in [this] Subsection (1)(e)(iv):
4202 (A) the division; or
4203 (B) the division with the concurrence of the commission.
4204 [(iv)] (vi) The decision on whether relief from [the revocation of a license] an action
4205 under this Subsection (1)(e) will be granted shall be made by the presiding officer.
4206 [(v)] (vii) Relief from [a] an automatic revocation under [this] Subsection (1)(e)(ii)
4207 may be granted only if:
4208 (A) the criminal history upon which the division based the revocation:
4209 (I) did not occur; or
4210 (II) is the criminal history of another person;

4211 (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
4212 (II) the applicant has a reasonable good faith belief at the time of application that there
4213 was no criminal history to be disclosed; or
4214 (C) the division fails to follow the prescribed procedure for the revocation.
4215 [(vi)] (viii) If a license is revoked or a revocation under this Subsection (1)(e) is upheld
4216 after a [post-revocation] hearing, the [person] individual may not apply for a new license until
4217 at least 12 months after the day on which the license is revoked.
4218 (2) (a) (i) A license expires if it is not renewed on or before its expiration date.
4219 (ii) As a condition of renewal, an active licensee shall demonstrate competence by
4220 completing 18 hours of continuing education within a two-year renewal period subject to rules
4221 made by the commission, with the concurrence of the division.
4222 (iii) In making a rule described in Subsection (2)(c)(ii), the division and commission
4223 shall consider:
4224 (A) evaluating continuing education on the basis of competency, rather than course
4225 time;
4226 (B) allowing completion of courses in a significant variety of topic areas that the
4227 division and commission determine are valuable in assisting an individual licensed under this
4228 chapter to increase the individual's competency; and
4229 (C) allowing completion of courses that will increase a licensee's professional
4230 competency in the area of practice of the licensee.
4231 [(iv) The division with the concurrence of the commission shall certify the continuing
4232 education required under this Subsection (2)(a) which may include:]
4233 [(A) state conventions;]
4234 [(B) home study courses;]
4235 [(C) video courses; and]
4236 [(D) closed circuit television courses.]
4237 [(v)] (iv) The [commission with concurrence of the] division may [exempt] award
4238 credit to a licensee [from all or a part of the] for a continuing education requirement of this
4239 Subsection (2)(a) for a reasonable period of time[: (A)] upon a finding of reasonable cause,
4240 including:
4241 [(I)] (A) military service; or

4242 [(II)] (B) if an individual is elected or appointed to government service, the individual's
4243 government service during which the individual spends a substantial time addressing real estate
4244 issues[; and (B) under] subject to conditions established by rule made in accordance with Title
4245 63G, Chapter 3, Utah Administrative Rulemaking Act.
4246 (b) For a period of 30 days after the expiration date of a license, the license may be
4247 reinstated upon:
4248 (i) payment of a renewal fee and a late fee determined by the commission with the
4249 concurrence of the division under Section 63J-1-504 ; and
4250 (ii) providing proof acceptable to the division and the commission of the licensee
4251 having:
4252 (A) completed the hours of education required by Subsection (2)(a); or
4253 (B) demonstrated competence as required under Subsection (2)(a).
4254 (c) After the 30-day period described in Subsection (2)(b), and until six months after
4255 the expiration date, the license may be reinstated by:
4256 (i) paying a renewal fee and a late fee determined by the commission with the
4257 concurrence of the division under Section 63J-1-504 ;
4258 (ii) providing to the division proof of satisfactory completion of [12] six hours of
4259 continuing education:
4260 (A) in addition to the requirements for a timely renewal; and
4261 (B) on a subject determined by the commission by rule made in accordance with Title
4262 63G, Chapter 3, Utah Administrative Rulemaking Act; and
4263 (iii) providing proof acceptable to the division and the commission of the licensee
4264 having:
4265 (A) completed the hours of education required under Subsection (2)(a); or
4266 (B) demonstrated competence as required under Subsection (2)(a).
4267 (d) After the six-month period described in Subsection (2)(c), and until one year after
4268 the expiration date, the license may be reinstated by:
4269 (i) paying a renewal fee and a late fee determined by the commission with the
4270 concurrence of the division under Section 63J-1-504 ;
4271 (ii) providing to the division proof of satisfactory completion of 24 hours of continuing
4272 education:

4273 (A) in addition to the requirements for a timely renewal; and
4274 (B) on a subject determined by the commission by rule made in accordance with Title
4275 63G, Chapter 3, Utah Administrative Rulemaking Act; and
4276 (iii) providing proof acceptable to the division and the commission of the licensee
4277 having:
4278 (A) completed the hours of education required by Subsection (2)(a); or
4279 (B) demonstrated competence as required under Subsection (2)(a).
4280 (e) The division shall relicense a person who does not renew that person's license
4281 within one year as prescribed for an original application.
4282 (f) Notwithstanding Subsection (2)(a), the division may extend the term of a license
4283 that would expire under Subsection (2)(a) except for the extension if:
4284 (i) the person complies with the requirements of this section to renew the license; and
4285 (ii) at the time of the extension, there is pending under this chapter:
4286 (A) the application for renewal of the license; or
4287 (B) a disciplinary action.
4288 (3) (a) As a condition for the activation of an inactive license that was in an inactive
4289 status at the time of the licensee's most recent renewal, the licensee shall supply the division
4290 with proof of:
4291 (i) successful completion of the respective sales agent or principal broker licensing
4292 examination within six months prior to applying to activate the license; or
4293 (ii) the successful completion of the hours of continuing education that the licensee
4294 would have been required to complete under Subsection (2)(a) if the license had been on active
4295 status at the time of the licensee's most recent renewal.
4296 (b) The commission may, in accordance with Title 63G, Chapter 3, Utah
4297 Administrative Rulemaking Act, establish by rule:
4298 (i) the nature or type of continuing education required for reactivation of a license; and
4299 (ii) how long before reactivation the continuing education must be completed.
4300 [(4) (a) A principal broker license may be granted to a corporation, partnership, or
4301 association if the corporation, partnership, or association has affiliated with it an individual
4302 who:]
4303 [(i) has qualified as a principal broker under the terms of this chapter; and]

4304 [(ii) serves in the capacity of a principal broker.]
4305 [(b) Application for the license described in Subsection (4)(a) shall be made in
4306 accordance with the rules adopted by the division with the concurrence of the commission.]
4307 [(5) The division may charge and collect reasonable fees determined by the
4308 commission with the concurrence of the division under Section 63J-1-504 to cover the costs
4309 for:]
4310 [(a) issuance of a new or duplicate license;]
4311 [(b) a license history or certification;]
4312 [(c) a certified copy of an official document, order, or other paper or transcript;]
4313 [(d) certifying a real estate school, course, or instructor, the fees for which shall,
4314 notwithstanding Section 13-1-2 , be deposited in the Real Estate Education, Research, and
4315 Recovery Fund; and]
4316 [(e) other duties required by this chapter.]
4317 [(6) If a licensee submits or causes to be submitted a check, draft, or other negotiable
4318 instrument to the division for payment of a fee, and the check, draft, or other negotiable
4319 instrument is dishonored, the transaction for which the payment is submitted is void and will
4320 be reversed by the division if payment of the applicable fee is not received in full.]
4321 [(7) (a) A fee under this chapter and the additional license fee for the Real Estate
4322 Education, Research, and Recovery Fund under Section 61-2a-4 are in lieu of all other license
4323 fees or assessments that might otherwise be imposed or charged by the state or any of its
4324 political subdivisions, upon, or as a condition of, the privilege of conducting the business
4325 regulated by this chapter, except that a political subdivision within the state may charge a
4326 business license fee on a principal broker if the principal broker maintains a place of business
4327 within the jurisdiction of the political subdivision.]
4328 [(b) Unless otherwise exempt, a licensee under this chapter is subject to all taxes
4329 imposed under Title 59, Revenue and Taxation.]
4330 Section 78. Section 61-2f-205 , which is renumbered from Section 61-2-7 is
4331 renumbered and amended to read:
4332 [61-2-7]. 61-2f-205. Form of license -- Display of license.
4333 (1) The division shall issue to [each] a licensee a wall license [showing] that contains:
4334 (a) the name and address of the licensee[. The];

4335 (b) the seal of the state [shall be affixed to each license. Each license shall contain];
4336 and
4337 (c) any other matter prescribed by the division [and shall be delivered or mailed to].
4338 (2) The division shall send the license described in Subsection (1) to the licensee at the
4339 address furnished by the licensee. [The wall licenses of principal brokers, associate brokers,
4340 and sales agents who are affiliated with an office shall be kept in the office]
4341 (3) A principal broker shall keep the license of the principal broker and the license of
4342 any associate broker or sales agent affiliated with the principal broker in the office in which the
4343 licensee works to be made available on request.
4344 Section 79. Section 61-2f-206 is enacted to read:
4345 61-2f-206. Registration of entity or branch office -- Certification of education
4346 providers and courses -- Specialized licenses.
4347 (1) (a) An entity may not engage in an activity described in Section 61-2f-201 , unless it
4348 is registered with the division.
4349 (b) To register with the division under this Subsection (1), an entity shall submit to the
4350 division:
4351 (i) an application in a form required by the division;
4352 (ii) evidence of an affiliation with a principal broker;
4353 (iii) evidence that the entity is registered and in good standing with the Division of
4354 Corporations and Commercial Code; and
4355 (iv) a registration fee established by the commission with the concurrence of the
4356 division under Section 63J-1-504 .
4357 (2) (a) A principal broker shall register with the division each of the principal broker's
4358 branch offices.
4359 (b) To register a branch office with the division under this Subsection (2), a principal
4360 broker shall submit to the division:
4361 (i) an application in a form required by the division; and
4362 (ii) a registration fee established by the commission with the concurrence of the
4363 division under Section 63J-1-504 .
4364 (3) (a) In accordance with rules made by the commission, the division shall certify:
4365 (i) a real estate school;

4366 (ii) a course provider; or
4367 (iii) an instructor.
4368 (b) In accordance with rules made by the commission, and with the concurrence of the
4369 commission, the division shall certify a continuing education course that is required under this
4370 section.
4371 (4) (a) Except as provided by rule, a principal broker may not be responsible for more
4372 than one registered entity at the same time.
4373 (b) (i) In addition to issuing a principal broker license, associate broker license, or sales
4374 agent license authorizing the performance of an act set forth in Section 61-2f-201 , the division
4375 may issue a specialized sales license or specialized property management license with the
4376 scope of practice limited to the specialty.
4377 (ii) An individual may hold a specialized license in addition to a license as a principal
4378 broker, associate broker, or a sales agent.
4379 (iii) The commission may adopt rules pursuant to Title 63G, Chapter 3, Utah
4380 Administrative Rulemaking Act, for the administration of this Subsection (4), including:
4381 (A) prelicensing and postlicensing education requirements;
4382 (B) examination requirements;
4383 (C) affiliation with real estate brokerages or property management companies; and
4384 (D) other licensing procedures.
4385 Section 80. Section 61-2f-207 , which is renumbered from Section 61-2-7.1 is
4386 renumbered and amended to read:
4387 [61-2-7.1]. 61-2f-207. Change of information -- Failure to notify.
4388 (1) An applicant, licensee, registrant, or certificate holder shall send the division a
4389 signed statement in the form required by the division notifying the division within 10 business
4390 days of any change of:
4391 (a) principal broker;
4392 (b) principal business location;
4393 (c) mailing address;
4394 (d) home street address;
4395 (e) an individual's name; or
4396 (f) business name.

4397 (2) The division may charge a fee established by the commission with the concurrence
4398 of the division in accordance with Section 63J-1-504 for processing any notification of change
4399 submitted by an applicant, licensee, registrant, or certificate holder.
4400 (3) (a) When providing the division a business location or home street address, a
4401 physical location or street address must be provided.
4402 (b) When providing a mailing address, an applicant, licensee, registrant, or certificate
4403 holder may provide a post office box or other mail drop location.
4404 (4) Failure to notify the division of a change described in Subsection (1) is separate
4405 grounds for disciplinary action against [the] an applicant, licensee, registrant, or certificate
4406 holder.
4407 (5) An applicant, licensee, registrant, or certificate holder is considered to have
4408 received any notification that has been sent to the last address furnished to the division by the
4409 applicant, licensee, registrant, or certificate holder.
4410 Section 81. Section 61-2f-301 , which is renumbered from Section 61-2-7.2 is
4411 renumbered and amended to read:
4412 Part 3. Operational Requirements
4413 [61-2-7.2]. 61-2f-301. Reporting requirements.
4414 A licensee shall notify the division of the following by sending the division a signed
4415 statement within 10 business days of:
4416 (1) (a) a conviction of a criminal offense;
4417 (b) the entry of a plea in abeyance to a criminal offense; or
4418 (c) the potential resolution of a criminal case by:
4419 (i) a diversion agreement; or
4420 (ii) [any other] another agreement under which a criminal charge is held in suspense
4421 for a period of time; [or]
4422 (2) filing a personal or brokerage bankruptcy[.];
4423 (3) the suspension, revocation, surrender, cancellation, or denial of a license or
4424 registration of the licensee that is necessary to engage in an occupation or profession,
4425 regardless of whether the license or registration is issued by this state or another jurisdiction; or
4426 (4) the entry of a cease and desist order or a temporary or permanent injunction:
4427 (a) against the licensee by a court or administrative agency; and

4428 (b) on the basis of:
4429 (i) conduct or a practice involving the business of real estate; or
4430 (ii) conduct involving fraud, misrepresentation, or deceit.
4431 Section 82. Section 61-2f-302 , which is renumbered from Section 61-2-10 is
4432 renumbered and amended to read:
4433 [61-2-10]. 61-2f-302. Affiliation with more than one principal broker --
4434 Specialized licenses -- Designation of agents or brokers.
4435 [(1) (a) Except as provided in Subsection (1)(b), an associate broker or sales agent may
4436 not accept valuable consideration for the performance of an act specified in this chapter from a
4437 person except the principal broker with whom the associate broker or sales agent is affiliated
4438 and licensed.]
4439 [(b) An associate broker or sales agent may receive valuable consideration for the
4440 performance of an act specified in this chapter from a person other than the principal broker
4441 with whom the associate broker or sales agent is affiliated if:]
4442 [(i) the valuable consideration is paid with a payment instrument prepared by a title
4443 insurance agent;]
4444 [(ii) the title insurance agent provides the payment instrument to the principal broker;]
4445 [(iii) the title insurance agent complies with the written instructions of the principal
4446 broker:]
4447 [(A) in preparing the payment instrument; and]
4448 [(B) delivering the payment instrument to the principal broker; and]
4449 [(iv) the principal broker directly delivers the payment instrument to the associate
4450 broker or sales agent.]
4451 [(c) The commission, with the concurrence of the division, shall make rules in
4452 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:]
4453 [(i) defining what constitutes a "payment instrument" for purposes of this Subsection
4454 (1); or]
4455 [(ii) the form and contents of the written instructions required by Subsection (1)(b),
4456 including providing that the contents of the written instructions indicate that the payment
4457 instrument process is an assignment to the associate broker or sales agent by the principal
4458 broker of a portion of the consideration the title insurance agent is obligated to pay the

4459 principal broker.]
4460 (1) An individual who is not a principal broker may not engage in an act described in
4461 Section 61-2f-201 unless the individual is affiliated with a principal broker as:
4462 (a) an associate broker; or
4463 (b) a sales agent.
4464 (2) (a) An inactive associate broker or sales agent may not conduct a real estate
4465 transaction until the inactive associate broker or sales agent becomes affiliated with a
4466 [licensed] principal broker and submits the required documentation to the division.
4467 (b) An inactive principal broker may not conduct a real estate transaction until the
4468 principal broker's license is activated with the division.
4469 (3) A sales agent or associate broker may not affiliate with more than one principal
4470 broker at the same time.
4471 [(4) (a) Except as provided by rule, a principal broker may not be responsible for more
4472 than one real estate brokerage at the same time.]
4473 [(b) (i) In addition to issuing principal broker, associate broker, and sales agent licenses
4474 authorizing the performance of all of the acts set forth in Subsection 61-2-2 (12), the division
4475 may issue specialized sales licenses and specialized property management licenses with the
4476 scope of practice limited to the specialty.]
4477 [(ii) An individual may hold a specialized license in addition to a license to act as a
4478 principal broker, an associate broker, or a sales agent.]
4479 [(iii) The commission may adopt rules pursuant to Title 63G, Chapter 3, Utah
4480 Administrative Procedures Act, for the administration of this Subsection (4), including:]
4481 [(A) prelicensing and postlicensing education requirements;]
4482 [(B) examination requirements;]
4483 [(C) affiliation with real estate brokerages or property management companies; and]
4484 [(D) other licensing procedures.]
4485 [(c)] (4) An individual may not be a principal broker of [a brokerage] an entity and a
4486 sales agent or associate broker for a different [brokerage] entity at the same time.
4487 (5) An owner, purchaser, lessor, or lessee who engages the services of a principal
4488 broker may designate which sales agents or associate brokers affiliated with that principal
4489 broker will also represent that owner, purchaser, lessor, or lessee in the purchase, sale, lease, or

4490 exchange of real estate, or in exercising an option relating to real estate.
4491 Section 83. Section 61-2f-303 , which is renumbered from Section 61-2-25 is
4492 renumbered and amended to read:
4493 [61-2-25]. 61-2f-303. Sales agents or associate broker -- Affiliated with
4494 principal broker as independent contractors or employees -- Presumption.
4495 A sales agent or associate broker may be affiliated with a [licensed] principal [real
4496 estate] broker either as an independent contractor or as an employee. The relationship between
4497 sales agent or associate broker and principal broker is presumed to be an independent
4498 contractor relationship unless there is clear and convincing evidence that the relationship was
4499 intended by the parties to be an employer employee relationship.
4500 Section 84. Section 61-2f-304 , which is renumbered from Section 61-2-8 is
4501 renumbered and amended to read:
4502 [61-2-8]. 61-2f-304. Termination of associate broker or sales agent by
4503 principal broker -- Notice.
4504 [If] (1) If a principal broker terminates an associate broker or sales agent [is discharged
4505 by a principal broker], the principal broker shall[, within three days, send] by no later than three
4506 days from the day on which the principal broker terminates the associate broker or sales agent:
4507 (a) provide the division a signed statement notifying the division of the [discharge.
4508 The principal broker shall address a communication] termination; and
4509 (b) send to the last-known residence address of that associate broker or sales agent
4510 [advising him that notice of his termination has been delivered or sent to the division. It is
4511 unlawful for any] notice that the principal broker has notified the division of the termination of
4512 the associate broker or sales agent.
4513 (2) An associate broker or sales agent [to] may not perform any [of the acts] act under
4514 this chapter, directly or indirectly, from and after the date of receipt of the termination notice by
4515 the division until [affiliation with a principal broker has been established] the day on which the
4516 associate broker or sales agent is affiliated with a principal broker.
4517 Section 85. Section 61-2f-305 is enacted to read:
4518 61-2f-305. Restrictions on commissions.
4519 (1) Except as provided in Subsection (2), an associate broker or sales agent may not
4520 accept valuable consideration for the performance of an act specified in this chapter from a

4521 person except the principal broker with whom the associate broker or sales agent is affiliated.
4522 (2) An associate broker or sales agent may receive valuable consideration for the
4523 performance of an act specified in this chapter from a person other than the principal broker
4524 with whom the associate broker or sales agent is affiliated if:
4525 (a) the valuable consideration is paid with a payment instrument prepared by a title
4526 insurance agent;
4527 (b) the title insurance agent provides the payment instrument to the principal broker;
4528 (c) the title insurance agent complies with the written instructions of the principal
4529 broker:
4530 (i) in preparing the payment instrument; and
4531 (ii) delivering the payment instrument to the principal broker; and
4532 (d) the principal broker directly delivers the payment instrument to the associate broker
4533 or sales agent.
4534 (3) The commission, with the concurrence of the division, shall make rules in
4535 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
4536 (a) defining what constitutes a "payment instrument" for purposes of this section; or
4537 (b) the form and contents of the written instructions required by Subsection (2),
4538 including providing that the contents of the written instructions indicate that the payment
4539 instrument process is an assignment to the associate broker or sales agent by the principal
4540 broker of a portion of the consideration the title insurance agent is obligated to pay the
4541 principal broker.
4542 Section 86. Section 61-2f-306 , which is renumbered from Section 61-2-20 is
4543 renumbered and amended to read:
4544 [61-2-20]. 61-2f-306. Rights and privileges of real estate licensees to fill out
4545 forms or documents.
4546 (1) Except as provided in Subsection (2), a real estate licensee may fill out only those
4547 legal forms approved by the commission and the attorney general, and those forms provided by
4548 statute.
4549 (2) (a) (i) A principal broker may fill out any documents associated with the closing of
4550 a real estate transaction.
4551 (ii) A branch broker or associate broker may fill out any documents associated with the

4552 closing of a real estate transaction if designated to fill out the documents by the principal
4553 broker with whom the branch broker or associate broker is affiliated.
4554 (b) A real estate licensee may fill out real estate forms prepared by legal counsel of the
4555 buyer, seller, lessor, or lessee.
4556 (c) If the commission and the attorney general have not approved a specific form for
4557 the transaction, a principal broker, associate broker, or sales agent may fill out real estate forms
4558 prepared by any legal counsel, including legal counsel retained by the brokerage to develop
4559 these forms.
4560 (3) The commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
4561 Administrative Rulemaking Act, provide a process for the approval of a legal form under this
4562 section by the commission and the attorney general.
4563 Section 87. Section 61-2f-307 , which is renumbered from Section 61-2-26 is
4564 renumbered and amended to read:
4565 [61-2-26]. 61-2f-307. Rulemaking required for offer or sale of an undivided
4566 fractionalized long-term estate -- Disclosures -- Management agreement.
4567 (1) (a) A licensee or certificate holder under this chapter who sells or offers to sell an
4568 undivided fractionalized long-term estate shall comply with the disclosure requirements
4569 imposed by rules made by the commission under this section.
4570 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4571 commission shall make rules as to the timing, form, and substance of disclosures required to be
4572 made by a licensee or certificate holder under this section.
4573 (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4574 commission shall make rules imposing requirements for a management agreement related to an
4575 undivided fractionalized long-term estate that makes the offer or sale of the undivided
4576 fractionalized long-term estate treated as a real estate transaction and not treated as an offer or
4577 sale of a security under Chapter 1, Utah Uniform Securities Act.
4578 (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4579 commission shall make rules establishing:
4580 (a) the disclosures required in the sale or offer of an undivided fractionalized long-term
4581 estate that is subject to a master lease;
4582 (b) requirements for the management of a master lease on an undivided fractionalized

4583 long-term estate; and
4584 (c) the requirements on the structure of a master lease on an undivided fractionalized
4585 long-term estate.
4586 Section 88. Section 61-2f-308 , which is renumbered from Section 61-2-27 is
4587 renumbered and amended to read:
4588 [61-2-27]. 61-2f-308. Exclusive brokerage agreement.
4589 (1) As used in this section:
4590 (a) "Client" means a person who makes an exclusive brokerage agreement with a
4591 principal broker under Subsection (1)(c).
4592 (b) "Closed" means that:
4593 (i) [all] the documents required to be executed under the contract are executed;
4594 (ii) [all monies] the money required to be paid by either party under the contract [are]
4595 is paid in the form of collected or cleared funds;
4596 (iii) the proceeds of any new loan are delivered by the lender to the seller; and
4597 (iv) [all] the applicable documents are recorded in the office of the county recorder for
4598 the county in which the [property] real estate is located.
4599 (c) "Exclusive brokerage agreement" means a written agreement between a client and a
4600 principal broker:
4601 (i) (A) to list for sale, lease, or exchange:
4602 (I) real estate;
4603 (II) an option on real estate; or
4604 (III) an improvement on real estate; or
4605 (B) for representation in the purchase, lease, or exchange of:
4606 (I) real estate;
4607 (II) an option on real estate; or
4608 (III) an improvement on real estate;
4609 (ii) that gives the principal broker the sole right to act as the agent or representative of
4610 the client for the purchase, sale, lease, or exchange of:
4611 (A) real estate;
4612 (B) an option on real estate; or
4613 (C) an improvement on real estate; and

4614 (iii) that gives the principal broker the expectation of receiving valuable consideration
4615 in exchange for the principal broker's services.
4616 (2) (a) Except as provided in Subsection (2)(b), a principal broker subject to an
4617 exclusive brokerage agreement shall:
4618 (i) accept delivery of and present to the client offers and counteroffers to buy, lease, or
4619 exchange the client's [property] real estate;
4620 (ii) assist the client in developing, communicating, and presenting offers, counteroffers,
4621 and notices; and
4622 (iii) answer any question the client has concerning:
4623 (A) an offer;
4624 (B) a counteroffer;
4625 (C) a notice; and
4626 (D) a contingency.
4627 (b) A principal broker subject to an exclusive brokerage agreement need not comply
4628 with Subsection (2)(a) after:
4629 (i) (A) an agreement for the sale, lease, or exchange of the real estate, option on real
4630 estate, or improvement on real estate is[: (A)] signed;
4631 (B) [all] the contingencies related to the sale, lease, or exchange are satisfied or
4632 waived; and
4633 (C) the sale, lease, or exchange is closed; or
4634 (ii) the exclusive brokerage agreement expires or terminates.
4635 (3) A principal broker who violates this section is subject to [Section 61-2-17 ] Sections
4636 61-2f-404 and 61-2f-405 .
4637 Section 89. Section 61-2f-401 , which is renumbered from Section 61-2-11 is
4638 renumbered and amended to read:
4639 Part 4. Enforcement
4640 [61-2-11]. 61-2f-401. Grounds for disciplinary action.
4641 The following acts are unlawful for a person required to be licensed under this chapter:
4642 (1) (a) making a substantial misrepresentation;
4643 (b) making an intentional misrepresentation;
4644 (c) pursuing a continued and flagrant course of misrepresentation;

4645 (d) making a false representation or promise through an agent, sales agent, advertising,
4646 or otherwise; or
4647 [(2)] (e) making a false representation or promise of a character likely to influence,
4648 persuade, or induce;
4649 [(3) pursuing a continued and flagrant course of misrepresentation, or of making false
4650 promises through agents, sales agents, advertising, or otherwise;]
4651 [(4)] (2) acting for more than one party in a transaction without the informed consent
4652 of all parties;
4653 [(5)] (3) (a) acting as an associate broker or sales agent while not [licensed] affiliated
4654 with a [licensed] principal broker;
4655 (b) representing or attempting to represent a principal broker other than the principal
4656 broker with whom the person is affiliated; or
4657 (c) representing as sales agent or having a contractual relationship similar to that of
4658 sales agent with a person other than a [licensed] principal broker;
4659 [(6)] (4) (a) failing, within a reasonable time, to account for or to remit [monies coming
4660 into the] money that belongs to another and comes into the person's possession [that belong to
4661 others];
4662 (b) commingling [the monies] money described in Subsection [(6)] (4)(a) with the
4663 person's own [monies] money; or
4664 (c) diverting [the monies] money described in Subsection [(6)] (4)(a) from the purpose
4665 for which [they were] the money is received;
4666 [(7)] (5) paying or offering to pay valuable consideration, as defined by the
4667 commission, to a person not licensed under this chapter, except that valuable consideration
4668 may be shared:
4669 (a) with a [licensed] principal broker of another jurisdiction; or
4670 (b) as provided under:
4671 (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act;
4672 (ii) Title 16, Chapter 11, Professional Corporation Act; or
4673 (iii) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act;
4674 [(8)] (6) being [unworthy or] incompetent to act as a principal broker, associate broker,
4675 or sales agent in such manner as to safeguard the interests of the public;

4676 [(9)] (7) failing to voluntarily furnish a copy of a document to all parties [executing
4677 the] before and after the execution of a document;
4678 [(10)] (8) failing to keep and make available for inspection by the division a record of
4679 each transaction, including:
4680 (a) the names of buyers and sellers or lessees and lessors;
4681 (b) the identification of [the property] real estate;
4682 (c) the sale or rental price;
4683 (d) [monies] money received in trust;
4684 (e) agreements or instructions from buyers and sellers or lessees and lessors; and
4685 (f) any other information required by rule;
4686 [(11)] (9) failing to disclose, in writing, in the purchase, sale, or rental of [property]
4687 real estate, whether the purchase, sale, or rental is made for that person or for an undisclosed
4688 principal;
4689 [(12) regardless of whether the crime is related to real estate,]
4690 (10) being convicted of a criminal offense involving moral turpitude within five years
4691 of the most recent application[,]:
4692 (a) regardless of whether the criminal offense is related to real estate; and
4693 (b) including:
4694 [(a)] (i) a conviction based upon a plea of nolo contendere; or
4695 [(b)] (ii) a plea held in abeyance to a criminal offense involving moral turpitude;
4696 [(13)] (11) advertising the availability of real estate or the services of a licensee in a
4697 false, misleading, or deceptive manner;
4698 [(14)] (12) in the case of a principal broker or a licensee who is a branch manager,
4699 failing to exercise reasonable supervision over the activities of the principal broker's or branch
4700 manager's [licensee] licensed or unlicensed staff;
4701 [(15)] (13) violating or disregarding:
4702 (a) this chapter;
4703 (b) an order of the commission; or
4704 (c) the rules adopted by the commission and the division;
4705 [(16)] (14) breaching a fiduciary duty owed by a licensee to the licensee's principal in a
4706 real estate transaction;

4707 [(17)] (15) any other conduct which constitutes dishonest dealing;
4708 [(18)] (16) unprofessional conduct as defined by statute or rule;
4709 [(19) on the basis of misconduct in a professional capacity that relates to character,
4710 honesty, integrity, or truthfulness,]
4711 (17) having one of the following suspended, revoked, surrendered, or cancelled on the
4712 basis of misconduct in a professional capacity that relates to character, honesty, integrity, or
4713 truthfulness:
4714 (a) a real estate license, registration, or certificate issued by another jurisdiction; or
4715 (b) another [professional] license, registration, or certificate to engage in an occupation
4716 or profession issued by this state or another jurisdiction;
4717 [(20)] (18) failing to respond to a request by the division in an investigation authorized
4718 under this chapter, including:
4719 (a) failing to respond to a subpoena;
4720 (b) withholding evidence; or
4721 (c) failing to produce documents or records;
4722 [(21)] (19) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
4723 (a) providing a title insurance product or service without the approval required by
4724 Section 31A-2-405 ; or
4725 (b) knowingly providing false or misleading information in the statement required by
4726 Subsection 31A-2-405 (2); or
4727 [(22)] (20) violating an independent contractor agreement between a principal broker
4728 and a sales agent or associate broker as evidenced by a final judgment of a court.
4729 Section 90. Section 61-2f-402 , which is renumbered from Section 61-2-11.5 is
4730 renumbered and amended to read:
4731 [61-2-11.5]. 61-2f-402. Investigations.
4732 (1) The division may make [any] an investigation within or outside of this state as the
4733 division considers necessary to determine whether [any] a person has violated, is violating, or
4734 is about to violate this chapter or any rule or order under this chapter.
4735 (2) To aid in the enforcement of this chapter or in the prescribing of rules and forms
4736 under this chapter, the division may require or permit [any] a person to file a statement in
4737 writing, under oath or otherwise as to [all] the facts and circumstances concerning the matter to

4738 be investigated.
4739 (3) For the purpose of the investigation described in Subsection (1), the division or
4740 [any] an employee designated by the division may:
4741 (a) administer an oath or affirmation;
4742 (b) subpoena witnesses and evidence;
4743 (c) take evidence;
4744 (d) require the production of a book, paper, contract, record, other document, or
4745 information relevant to the investigation; and
4746 (e) serve a subpoena by certified mail.
4747 (4) (a) A person shall pay the costs incurred by the division to copy a book, paper,
4748 contract, document, or record required under this chapter, including the costs incurred to copy
4749 an electronic book, paper, contract, document, or record in a universally readable format.
4750 (b) If a person fails to pay the costs described in Subsection (4)(a) when due, the
4751 person's license, certification, or registration is automatically suspended:
4752 (i) beginning the day on which the payment of costs is due; and
4753 (ii) ending the day on which the costs are paid.
4754 Section 91. Section 61-2f-403 , which is renumbered from Section 61-2-24 is
4755 renumbered and amended to read:
4756 [61-2-24]. 61-2f-403. Mishandling of trust funds.
4757 (1) The division may audit principal brokers' trust accounts or other accounts in which
4758 a licensee maintains trust [funds] money under this chapter. If the division's audit shows, in the
4759 opinion of the division, gross mismanagement, commingling, or misuse of [funds] money, the
4760 division, with the concurrence of the commission, may order a complete audit of the account
4761 by a certified public accountant at the licensee's expense, or take other action in accordance
4762 with Section [ 61-2-12 ] 61-2f-404 .
4763 (2) The licensee may obtain agency review by the executive director or judicial review
4764 of any division order.
4765 (3) (a) If it appears that a person has grossly mismanaged, commingled, or otherwise
4766 misused trust [funds] money, the division, with or without prior administrative proceedings,
4767 may bring an action:
4768 (i) in the district court of the district where:

4769 (A) the person resides [or];
4770 (B) the person maintains a place of business[,]; or [where]
4771 (C) the act or practice occurred or is about to occur[,]; and
4772 (ii) to enjoin the [acts or practices] act or practice and to enforce compliance with this
4773 chapter or any rule or order under this chapter.
4774 (b) Upon a proper showing, [the] a court shall grant injunctive relief or a temporary
4775 restraining order, and may appoint a receiver or conservator. The division is not required to
4776 post a bond in any court proceeding.
4777 Section 92. Section 61-2f-404 , which is renumbered from Section 61-2-12 is
4778 renumbered and amended to read:
4779 [61-2-12]. 61-2f-404. Disciplinary action -- Judicial review.
4780 (1) (a) On the basis of a violation of this chapter, the commission with the concurrence
4781 of the director, may issue an order:
4782 (i) imposing an educational requirement;
4783 (ii) imposing a civil penalty not to exceed the greater of:
4784 (A) [$2,500] $5,000 for each violation; or
4785 (B) the amount of any gain or economic benefit derived from each violation;
4786 (iii) taking any of the following actions related to a license, registration, or certificate:
4787 (A) revoking;
4788 (B) suspending;
4789 (C) placing on probation;
4790 (D) denying the renewal, reinstatement, or application for an original license,
4791 registration, or certificate; or
4792 (E) in the case of denial or revocation of a license, registration, or certificate, setting a
4793 waiting period for an applicant to apply for a license, registration, or certificate under this title;
4794 (iv) issuing a cease and desist order;
4795 (v) modifying an action described in Subsections (1)(a)(i) through (iv) if the
4796 commission finds that the person complies with court ordered restitution; or
4797 (vi) doing any combination of Subsections (1)(a)(i) through (v).
4798 (b) (i) If the commission with the concurrence of the director issues an order that
4799 orders a fine or educational requirements as part of a disciplinary action against a person,

4800 including a stipulation and order, the commission shall state in the order the deadline by which
4801 the person shall comply with the fine or educational requirements.
4802 (ii) If a person fails to comply by the stated deadline:
4803 (A) the person's license, registration, or certificate is automatically suspended:
4804 (I) beginning the day specified in the order as the deadline for compliance; and
4805 (II) ending the day on which the person complies in full with the order; and
4806 (B) if the person fails to pay a fine required by an order, the division may begin a
4807 collection process:
4808 (I) established by the division, with the concurrence of the commission, by rule made
4809 in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
4810 (II) subject to Title 63A, Chapter 8, Office of State Debt Collection.
4811 [(b)] (c) If a licensee is an active sales agent or active associate broker, the division
4812 shall inform the principal broker with whom the licensee is affiliated of the charge and of the
4813 time and place of any hearing.
4814 (2) (a) An applicant, certificate holder, licensee, registrant, or person aggrieved,
4815 including the complainant, may obtain agency review by the executive director and judicial
4816 review of any adverse ruling, order, or decision of the division.
4817 (b) If an applicant, certificate holder, registrant, or licensee prevails in the appeal and
4818 the court finds that the state action was undertaken without substantial justification, the court
4819 may award reasonable litigation expenses to the applicant, certificate holder, registrant, or
4820 licensee as provided under Title 78B, Chapter 8, Part 5, Small Business Equal Access to
4821 Justice Act.
4822 (c) (i) An order, ruling, or decision of the division shall take effect and become
4823 operative 30 days after the service of the order, ruling, or decision unless otherwise provided in
4824 the order.
4825 (ii) If an appeal is taken by a licensee, registrant, or certificate holder, the division may
4826 stay enforcement of an order, ruling, or decision in accordance with Section 63G-4-405 .
4827 (iii) An appeal is governed by the Utah Rules of Appellate Procedure.
4828 (3) The commission and the director shall comply with the procedures and
4829 requirements of Title 63G, Chapter 4, Administrative Procedures Act, in an adjudicative
4830 proceeding.

4831 Section 93. Section 61-2f-405 , which is renumbered from Section 61-2-17 is
4832 renumbered and amended to read:
4833 [61-2-17]. 61-2f-405. Criminal penalties for violation of chapter -- Other
4834 penalties.
4835 (1) (a) An individual required to be licensed under this chapter who violates this
4836 chapter, in addition to being subject to a license sanction or a fine ordered by the commission,
4837 is, upon conviction of a first violation, guilty of a class A misdemeanor.
4838 (b) For a conviction under this Subsection (1)[(a)], imprisonment shall be for a term
4839 not to exceed six months.
4840 [(b) If a violator of this chapter is a corporation, the corporation is, upon conviction of
4841 a first violation, guilty of a class A misdemeanor.]
4842 (2) (a) Upon conviction of a second or subsequent violation, an individual is guilty of a
4843 third degree felony.
4844 (b) Imprisonment for a conviction under this Subsection (2)(a) shall be for a term not
4845 to exceed two years.
4846 [(b) If a corporation is convicted of a second or subsequent violation, the corporation is
4847 guilty of a third degree felony.]
4848 (3) An officer or agent of a corporation, [or] a member or agent of a partnership or
4849 association, or an individual in a similar position of another type of entity who personally
4850 participates in or is an accessory to any violation of this chapter by the [corporation,
4851 partnership, or association,] entity is subject to the penalties prescribed for an individual.
4852 (4) If a person receives money or its equivalent, as commission, compensation, or
4853 profit by or in consequence of a violation of this chapter, that person is liable for an additional
4854 penalty of not less than the amount of the money received and not more than three times the
4855 amount of money received, as may be determined by the court. This penalty may be sued for in
4856 any court of competent jurisdiction, and recovered by any person aggrieved for the person's
4857 own use and benefit.
4858 (5) A fine imposed by the commission and the director under this chapter shall,
4859 notwithstanding Section 13-1-2 , be deposited into the Real Estate Education, Research, and
4860 Recovery Fund to be used in a manner consistent with the requirements of [Chapter 2a] Part 5,
4861 Real Estate Education, Research, and Recovery Fund Act.

4862 Section 94. Section 61-2f-406 , which is renumbered from Section 61-2-13 is
4863 renumbered and amended to read:
4864 [61-2-13]. 61-2f-406. Grounds for revocation of principal broker's license --
4865 Automatic inactivation of affiliated associate brokers and sales agents licenses.
4866 (1) (a) An unlawful act or violation of this chapter committed by a person listed in
4867 Subsection (1)(b) is cause for:
4868 (i) the revocation, suspension, or probation of a principal broker's license; or
4869 (ii) the imposition of a fine against the principal broker in an amount not to exceed
4870 [$2,500] $5,000 per violation.
4871 (b) Subsection (1)(a) applies to an act or violation by any of the following:
4872 (i) a [real estate] sales agent or associate broker employed by a [licensed] principal
4873 broker;
4874 (ii) a [real estate] sales agent or associate broker engaged as an independent contractor
4875 by or on behalf of a [licensed] principal broker; or
4876 (iii) an employee, officer, or member of a [licensed] principal broker.
4877 (2) (a) The revocation or suspension of a principal broker license automatically
4878 inactivates an associate broker or sales agent license granted to [a person] an individual by
4879 reason of that [person's] individual's affiliation with the principal broker whose license is
4880 revoked or suspended, pending a change of principal broker affiliation.
4881 (b) A principal broker shall, before the effective date of a suspension or revocation of
4882 the principal broker's license, notify in writing every licensee affiliated with the principal
4883 broker of the revocation or suspension of the principal broker license.
4884 Section 95. Section 61-2f-407 , which is renumbered from Section 61-2-21 is
4885 renumbered and amended to read:
4886 [61-2-21]. 61-2f-407. Remedies and action for violations.
4887 (1) (a) The director shall issue and serve upon a person an order directing that person to
4888 cease and desist from an act if:
4889 (i) the director has reason to believe that the person has been engaging, is about to
4890 engage, or is engaging in the act constituting a violation of this chapter; and
4891 (ii) it appears to the director that it would be in the public interest to stop the act.
4892 (b) Within 10 days after receiving the order, the person upon whom the order is served

4893 may request a hearing.
4894 (c) Pending a hearing requested under Subsection (1)(b), a cease and desist order shall
4895 remain in effect.
4896 (d) If a request for a hearing is made, the division shall follow the procedures and
4897 requirements of Title 63G, Chapter 4, Administrative Procedures Act.
4898 (2) (a) After a hearing requested under Subsection (1), if the commission and the
4899 director agree that an act of the person violates this chapter, the director:
4900 (i) shall issue an order making the order issued under Subsection (1) permanent; and
4901 (ii) may impose another disciplinary action under Section [ 61-2-12 ] 61-2f-404 .
4902 (b) The director shall file suit in the name of the Department of Commerce and the
4903 Division of Real Estate, in the district court in the county in which an act described in
4904 Subsection (1) occurs or where the person resides or carries on business, to enjoin and restrain
4905 the person from violating this chapter if:
4906 (i) (A) a hearing is not requested under Subsection (1); and
4907 (B) the person fails to cease the act described in Subsection (1); or
4908 (ii) after discontinuing the act described in Subsection (1), the person again
4909 commences the act.
4910 (c) A district court of this state has jurisdiction of an action brought under this section.
4911 (d) Upon a proper showing in an action brought under this section or upon a conviction
4912 under Section 76-6-1203 , the court may:
4913 (i) issue a permanent or temporary, prohibitory or mandatory injunction;
4914 (ii) issue a restraining order or writ of mandamus;
4915 (iii) enter a declaratory judgment;
4916 (iv) appoint a receiver or conservator for the defendant or the defendant's assets;
4917 (v) order disgorgement;
4918 (vi) order rescission;
4919 (vii) impose a civil penalty not to exceed the greater of:
4920 (A) [$2,500] $5,000 for each violation; or
4921 (B) the amount of any gain or economic benefit derived from a violation; and
4922 (viii) enter any other relief the court considers just.
4923 (e) The court may not require the division to post a bond in an action brought under

4924 this Subsection (2).
4925 (3) [Any] A license, certificate, or registration issued by the division to any person [or
4926 entity] convicted of a violation of Section 76-6-1203 is automatically revoked.
4927 (4) A remedy or action provided in this section does not limit, interfere with, or prevent
4928 the prosecution of another remedy or action, including a criminal proceeding.
4929 Section 96. Section 61-2f-408 , which is renumbered from Section 61-2-13.5 is
4930 renumbered and amended to read:
4931 [61-2-13.5]. 61-2f-408. Court-ordered discipline.
4932 The division shall promptly withhold, suspend, restrict, or reinstate the use of a license
4933 issued under this chapter if so ordered by a court.
4934 Section 97. Section 61-2f-409 , which is renumbered from Section 61-2-18 is
4935 renumbered and amended to read:
4936 [61-2-18]. 61-2f-409. Actions for recovery of compensation restricted.
4937 (1) [No] A person may not bring or maintain an action in any court of this state for the
4938 recovery of a commission, fee, or compensation for any act done or service rendered which is
4939 prohibited under this chapter to other than [licensed] principal brokers, unless the person was
4940 [duly] licensed as a principal broker at the time of the doing of the act or rendering the service.
4941 (2) [No] (a) A sales agent or associate broker may not sue in [his] that individual's
4942 own name for the recovery of a fee, commission, or compensation for services as a sales agent
4943 or associate broker unless the action is against the principal broker with whom [he] the sales
4944 agent or associate broker is or was [licensed. Any] affiliated.
4945 (b) An action for the recovery of a fee, commission, or other compensation may only
4946 be instituted and brought by the principal broker with whom [the] a sales agent or associate
4947 broker is affiliated.
4948 Section 98. Section 61-2f-501 , which is renumbered from Section 61-2a-1 is
4949 renumbered and amended to read:
4950 Part 5. Real Estate Education, Research, and Recovery Fund Act
4951 [61-2a-1]. 61-2f-501. Title.
4952 This [act shall be known and may be cited] part is known as the "Real Estate Education,
4953 Research, and Recovery Fund Act."
4954 Section 99. Section 61-2f-502 , which is renumbered from Section 61-2a-2 is

4955 renumbered and amended to read:
4956 [61-2a-2]. 61-2f-502. Definitions.
4957 [(1) The purposes of this chapter are as follows:]
4958 [(a) (i) This chapter creates the Real Estate Education, Research, and Recovery Fund to
4959 reimburse the public out of the fund for damages up to $15,000 caused by a real estate licensee
4960 in a real estate transaction as provided in Subsection 61-2a-5 (1).]
4961 [(ii) This chapter applies to damages caused by an individual licensee. Reimbursement
4962 may not be made for a judgment against a corporation, partnership, association, or other legal
4963 entity.]
4964 [(b) This chapter provides revenue for improving the real estate profession through
4965 education and research with the goal of making licensees more responsible to the public.]
4966 [(2) For purposes of this chapter:]
4967 [(a) "Commission" means the Real Estate Commission.]
4968 [(b) "Division" means the Division of Real Estate.]
4969 For purposes of this part:
4970 (1) "Civil judgment" means a judgment in a civil action that:
4971 (a) is awarded in an action brought against a real estate licensee on the basis of fraud,
4972 misrepresentation, or deceit in a real estate transaction; and
4973 (b) awards actual damages.
4974 (2) "Criminal restitution judgment" means a judgment that, in accordance with the
4975 Utah Code of Criminal Procedure, orders criminal restitution to a person and against a real
4976 estate licensee for a criminal offense involving fraud, misrepresentation, or deceit in a real
4977 estate transaction.
4978 (3) "Final judgment" means one of the following judgments upon termination of the
4979 proceedings related to the judgment, including appeals:
4980 (a) a civil judgment; or
4981 (b) a criminal restitution judgment.
4982 [(c)] (4) "Fund" means the Real Estate Education, Research, and Recovery Fund
4983 created in Section [ 61-2a-3 ] 61-2f-503 .
4984 [(d) "Judgment" includes a criminal restitution judgment award.]
4985 Section 100. Section 61-2f-503 , which is renumbered from Section 61-2a-3 is

4986 renumbered and amended to read:
4987 [61-2a-3]. 61-2f-503. Education, Research, and Recovery Fund.
4988 (1) (a) There is created a restricted special revenue fund [to be] known as the "Real
4989 Estate Education, Research, and Recovery Fund."
4990 (b) The actual interest earned on the fund shall be deposited into the fund.
4991 [(2) At the commencement of each fiscal year, $100,000 shall be available in the fund
4992 for satisfying judgments rendered against a person licensed under Title 61, Chapter 2, Division
4993 of Real Estate.]
4994 (2) The money in the fund includes:
4995 (a) a fee imposed under Section 61-2f-505 ; and
4996 (b) interest described in Subsection (1)(b).
4997 (3) The division shall administer the fund to:
4998 (a) reimburse the public for damages caused in a real estate transaction by an
4999 individual licensed under this chapter; and
5000 (b) in accordance with Section 61-2f-504 :
5001 (i) investigate violations of this chapter related to fraud, misrepresentation, or deceit; or
5002 (ii) provide revenue for improving the real estate profession through education and
5003 research with the goal of making licensees more responsible to the public.
5004 (4) This part applies to damages caused by an individual licensee. Reimbursement
5005 may not be made for a final judgment against an entity.
5006 (5) At the beginning of each fiscal year, the division shall make available $100,000 in
5007 the fund to satisfy final judgments rendered against a person licensed under this chapter.
5008 Section 101. Section 61-2f-504 , which is renumbered from Section 61-2a-12 is
5009 renumbered and amended to read:
5010 [61-2a-12]. 61-2f-504. Use of money.
5011 (1) Money accumulated in the fund in excess of $100,000 shall be set aside and
5012 segregated to be used by the division to:
5013 (a) investigate violations of this chapter [or Chapter 2, Division of Real Estate,] related
5014 to fraud, misrepresentation, or deceit; and
5015 (b) advance education and research in the field of real estate.
5016 (2) The division may [only] use the [excess monies] money described in Subsection (1)

5017 only in a manner consistent with Subsection (1), including for [courses] a course:
5018 (a) sponsored by the division;
5019 (b) offered by the division in conjunction with any university or college in the state; or
5020 (c) provided for by contracting for a particular research project in the field of real estate
5021 for the state.
5022 Section 102. Section 61-2f-505 , which is renumbered from Section 61-2a-4 is
5023 renumbered and amended to read:
5024 [61-2a-4]. 61-2f-505. Additional license fee.
5025 (1) [A person] An individual who applies for or renews a [real estate] principal broker
5026 or associate broker license shall pay, in addition to the application or renewal fee, a reasonable
5027 annual fee of up to $18, as determined by the division with the concurrence of the commission.
5028 (2) [A person] An individual who applies for or renews a [real estate] sales agent
5029 license shall pay in addition to the application or renewal fee a reasonable annual fee of up to
5030 $12, as determined by the division with the concurrence of the commission.
5031 (3) Notwithstanding Section 13-1-2 , the additional fees under this section shall be paid
5032 into the fund [to be used for the purposes of this chapter].
5033 Section 103. Section 61-2f-506 , which is renumbered from Section 61-2a-5 is
5034 renumbered and amended to read:
5035 [61-2a-5]. 61-2f-506. Procedure to make a claim against the fund.
5036 (1) [(a) Except as provided in Subsection (6), a] A person may bring a claim against
5037 the fund [only if the person sends] if:
5038 (a) the person obtains a final judgment;
5039 (b) the person complies with the requirements under this part;
5040 (c) the person is not complicit in the fraud, misrepresentation, or deceit that is the basis
5041 of the claim; and
5042 (d) the final judgment that is the basis for the claim:
5043 (i) has not been discharged in bankruptcy; and
5044 (ii) when a bankruptcy proceeding is open or commenced during the pendency of the
5045 claim, the person obtains an order from the bankruptcy court declaring the final judgment and
5046 related debt to be nondischargeable.
5047 (2) (a) A person may not bring a claim against the fund for money owed under a civil

5048 judgment unless, within 10 business days of the day on which the person brings the civil action
5049 that results in the civil judgment, the person sends to the division a signed notification [to the
5050 division at the time the person files an action against a real estate licensee] alleging fraud,
5051 misrepresentation, or deceit by a real estate licensee.
5052 (b) Within 30 days [of receipt of the notice,] of the day on which the division receives
5053 a notice under Subsection (1), the division has an unconditional right to intervene in the civil
5054 action.
5055 [(c) If the person making a claim against the fund obtains a final judgment in a court of
5056 competent jurisdiction in this state against the licensee based upon fraud, misrepresentation, or
5057 deceit in a real estate transaction, the person making the claim may, upon termination of all
5058 proceedings including appeals, file]
5059 (3) (a) After obtaining a final judgment, to file a claim against the fund, a person shall:
5060 (i) file a verified petition in the court where the final judgment [was] is entered [for]
5061 seeking an order directing payment from the fund [for the] of an amount equal to the
5062 uncollected actual damages [included in the judgment and unpaid.] owed under the final
5063 judgment that are unpaid;
5064 (ii) serve a copy of the verified petition described in Subsection (3)(a)(i) on the
5065 division; and
5066 (iii) file a copy of the affidavit of service of the verified petition with the court.
5067 [(d)] (b) Recovery from the fund may not include:
5068 (i) punitive damages;
5069 (ii) attorney fees;
5070 (iii) interest; or
5071 (iv) court costs.
5072 [(e)] (c) Regardless of the number of claimants or parcels of real estate involved in a
5073 real estate transaction, the liability of the fund may not exceed:
5074 (i) $15,000 for a single transaction; and
5075 (ii) $50,000 for one licensee.
5076 [(2) A copy of the petition shall be served upon the division, and an affidavit of the
5077 service shall be filed with the court.]
5078 [(3) The] (4) A court shall conduct a hearing on [the] a petition [within 30 days after

5079 service. The petitioner shall recover from the fund only if the petitioner shows all of the
5080 following:] filed under Subsection (3) as scheduled by the court.
5081 (5) Subject to Subsection (6), a court may order payment from the fund under this
5082 section only if the person who files the petition shows that the person:
5083 (a) [the petitioner] is not:
5084 (i) in the case of a civil judgment, the spouse of the judgment debtor [or the];
5085 (ii) in the case of a criminal judgment, the spouse of the criminal defendant; or
5086 (iii) a personal representative of [the spouse] an individual described in Subsection
5087 (5)(a)(i) or (ii);
5088 (b) [the petitioner has complied] is in compliance with this chapter;
5089 (c) [the petitioner has obtained] is owed damages under a final judgment that:
5090 (i) is issued by the court in the manner prescribed under this section[, indicating]; and
5091 (ii) indicates the amount of the final judgment awarded;
5092 (d) [the petitioner] has proved the amount still owing on the final judgment [at] on the
5093 date [of] the petition is filed;
5094 (e) (i) (A) [the petitioner] has had a writ of execution issued upon the final judgment[,];
5095 and
5096 (B) has received a return made by the officer executing the writ [has made a return]
5097 showing that no property subject to execution in satisfaction of the final judgment could be
5098 found; or
5099 [(f)] (ii) if execution is levied against the property of the judgment debtor or criminal
5100 defendant:
5101 [(i) that the amount realized was insufficient]
5102 (A) has not realized an amount sufficient to satisfy the final judgment; and
5103 [(ii) the amount realized and the]
5104 (B) is owed a specific balance remaining on the final judgment after application of the
5105 amount realized;
5106 [(g) the petitioner] (f) has made reasonable searches and inquiries to ascertain whether
5107 the judgment debtor or criminal defendant has any interest in property, real or personal, that
5108 may satisfy the final judgment; and
5109 [(h) the petitioner] (g) has exercised reasonable diligence to secure payment of the

5110 final judgment from the assets of the judgment debtor or criminal defendant.
5111 [(4)] (6) If [the petitioner] a person satisfies the court under Subsection (5) that it is not
5112 practicable for the petitioner to comply with one or more of the requirements enumerated in
5113 Subsections [(3)] (5)(e) through [(h)] (g), the court may waive those requirements.
5114 [(5) (a) A judgment that is the basis for a claim against the fund may not have been
5115 discharged in bankruptcy.]
5116 [(b) In the case of a bankruptcy proceeding that is still open or that is commenced
5117 during the pendency of the claim, the claimant shall obtain an order from the bankruptcy court
5118 declaring the judgment and debt to be nondischargeable.]
5119 [(6) A person may not bring a claim against the fund if the person is substantially
5120 complicit in the fraud, misrepresentation, or deceit that is the basis of the claim.]
5121 Section 104. Section 61-2f-507 , which is renumbered from Section 61-2a-6 is
5122 renumbered and amended to read:
5123 [61-2a-6]. 61-2f-507. Division authority to act upon receipt of petition.
5124 [(1) Upon receipt of a petition as required by Section 61-2a-5 , the division may answer,
5125 initiate review proceedings of its own, or]
5126 (1) When the division is served a petition under Section 61-2f-506 , the division may:
5127 (a) file an answer to the petition in the court;
5128 (b) initiate a review proceeding conducted by the division; or
5129 (c) appear in any proceeding in the name of the defendant to the action or on behalf of
5130 the fund.
5131 [(2) The division may, subject to court approval, compromise a claim based upon the
5132 application of a petitioner.]
5133 (2) The division may settle a claim against the fund if:
5134 (a) the person who brings the claim requests a settlement; and
5135 (b) the court in which the petition is filed approves the settlement.
5136 Section 105. Section 61-2f-508 , which is renumbered from Section 61-2a-7 is
5137 renumbered and amended to read:
5138 [61-2a-7]. 61-2f-508. Court determination and order.
5139 If [the] a court determines that [a claim should be levied against that portion of the fund
5140 allocated for the purpose of carrying out the provisions of this chapter,] the fund should pay a

5141 claim under this part, in its order the court shall [enter an order directed to] direct the division
5142 [requiring payment from the fund of] to pay from the fund that portion of the [petitioner's] final
5143 judgment that is payable from the fund [pursuant to Section 61-2a-5 ] in accordance with
5144 Section 61-2f-506 .
5145 Section 106. Section 61-2f-509 , which is renumbered from Section 61-2a-8 is
5146 renumbered and amended to read:
5147 [61-2a-8]. 61-2f-509. Insufficient funds to satisfy judgments -- Procedure and
5148 interest.
5149 If [the] money deposited in the fund and allotted for satisfying [judgments against
5150 licensees] a final judgment against a real estate licensee is insufficient to satisfy [any
5151 authorized claim for payment, the division shall,] an order issued in accordance with Section
5152 61-2f-508 , when sufficient money [has been] is deposited in the fund, the division shall:
5153 (1) satisfy the unpaid claims in the order that [they were] the unpaid claims are
5154 originally filed[, together with]; and
5155 (2) pay with the claim accumulated interest at the rate of 8% per annum.
5156 Section 107. Section 61-2f-510 , which is renumbered from Section 61-2a-9 is
5157 renumbered and amended to read:
5158 [61-2a-9]. 61-2f-510. Division subrogated to judgment creditor -- Authority to
5159 revoke license.
5160 (1) (a) If the division [makes payment from the fund to a judgment creditor, the
5161 division shall be] pays a claim against the fund in accordance with this chapter, the division is
5162 subrogated to the rights of the [judgment creditor] person who is paid the claim for the amounts
5163 paid out of the fund [and any amount and].
5164 (b) The division shall deposit in the fund any amount and interest recovered by the
5165 division [shall be deposited in the fund] under this part.
5166 (2) (a) The license of a real estate licensee for whom payment from the fund is made
5167 under this chapter shall be automatically revoked.
5168 (b) [A licensee] A person whose real estate license is revoked under Subsection (2)(a)
5169 may not apply for a new license [until] under this chapter until the person pays in full:
5170 (i) the amount paid [out on the licensee's account, plus] by the fund for a claim that is
5171 based on a final judgment against the person; and

5172 (ii) interest at a rate determined by the division with the concurrence of the
5173 commission[, is repaid in full].
5174 Section 108. Section 61-2f-511 , which is renumbered from Section 61-2a-11 is
5175 renumbered and amended to read:
5176 [61-2a-11]. 61-2f-511. Authority to take disciplinary action.
5177 (1) [Nothing contained in this chapter shall] This part does not limit the authority of
5178 the director of the division to take disciplinary action against a real estate licensee for a
5179 violation of [Chapter 2, Division of Real Estate,] this chapter or of the rules of the commission
5180 and division.
5181 (2) [The repayment in full of all obligations to the fund by a licensee] A real estate
5182 licensee's payment of all the obligations of the real estate licensee to the fund does not nullify
5183 or modify the effect of any other disciplinary proceeding brought pursuant to [Chapter 2,
5184 Division of Real Estate,] this chapter or the rules of the commission.
5185 Section 109. Section 61-2f-512 , which is renumbered from Section 61-2a-10 is
5186 renumbered and amended to read:
5187 [61-2a-10]. 61-2f-512. Failure to comply with provisions constitutes a waiver.
5188 [The failure of any person] A person's failure to comply with [the provisions of this
5189 chapter shall constitute] this part constitutes a waiver of any [rights provided under it] right
5190 under this part.
5191 Section 110. Section 63G-2-302 is amended to read:
5192 63G-2-302. Private records.
5193 (1) The following records are private:
5194 (a) records concerning an individual's eligibility for unemployment insurance benefits,
5195 social services, welfare benefits, or the determination of benefit levels;
5196 (b) records containing data on individuals describing medical history, diagnosis,
5197 condition, treatment, evaluation, or similar medical data;
5198 (c) records of publicly funded libraries that when examined alone or with other records
5199 identify a patron;
5200 (d) records received or generated for a Senate or House Ethics Committee concerning
5201 any alleged violation of the rules on legislative ethics, prior to the meeting, and after the
5202 meeting, if the ethics committee meeting was closed to the public;

5203 (e) records received or generated for a Senate confirmation committee concerning
5204 character, professional competence, or physical or mental health of an individual:
5205 (i) if prior to the meeting, the chair of the committee determines release of the records:
5206 (A) reasonably could be expected to interfere with the investigation undertaken by the
5207 committee; or
5208 (B) would create a danger of depriving a person of a right to a fair proceeding or
5209 impartial hearing; and
5210 (ii) after the meeting, if the meeting was closed to the public;
5211 (f) employment records concerning a current or former employee of, or applicant for
5212 employment with, a governmental entity that would disclose that individual's home address,
5213 home telephone number, Social Security number, insurance coverage, marital status, or payroll
5214 deductions;
5215 (g) records or parts of records under Section 63G-2-303 that a current or former
5216 employee identifies as private according to the requirements of that section;
5217 (h) that part of a record indicating a person's Social Security number or federal
5218 employer identification number if provided under Section 31A-23a-104 , 31A-25-202 ,
5219 31A-26-202 , 58-1-301 , 61-1-4 , or [ 61-2-6 ] 61-2f-203 ;
5220 (i) that part of a voter registration record identifying a voter's driver license or
5221 identification card number, Social Security number, or last four digits of the Social Security
5222 number;
5223 (j) a record that:
5224 (i) contains information about an individual;
5225 (ii) is voluntarily provided by the individual; and
5226 (iii) goes into an electronic database that:
5227 (A) is designated by and administered under the authority of the Chief Information
5228 Officer; and
5229 (B) acts as a repository of information about the individual that can be electronically
5230 retrieved and used to facilitate the individual's online interaction with a state agency;
5231 (k) information provided to the Commissioner of Insurance under:
5232 (i) Subsection 31A-23a-115 (2)(a);
5233 (ii) Subsection 31A-23a-302 (3); or

5234 (iii) Subsection 31A-26-210 (3);
5235 (l) information obtained through a criminal background check under Title 11, Chapter
5236 40, Criminal Background Checks by Political Subdivisions Operating Water Systems;
5237 (m) information provided by an offender that is:
5238 (i) required by the registration requirements of Section 77-27-21.5 ; and
5239 (ii) not required to be made available to the public under Subsection 77-27-21.5 (27);
5240 and
5241 (n) a statement and any supporting documentation filed with the attorney general in
5242 accordance with Section 34-45-107 , if the federal law or action supporting the filing involves
5243 homeland security.
5244 (2) The following records are private if properly classified by a governmental entity:
5245 (a) records concerning a current or former employee of, or applicant for employment
5246 with a governmental entity, including performance evaluations and personal status information
5247 such as race, religion, or disabilities, but not including records that are public under Subsection
5248 63G-2-301 (2)(b) or 63G-2-301 (3)(o), or private under Subsection (1)(b);
5249 (b) records describing an individual's finances, except that the following are public:
5250 (i) records described in Subsection 63G-2-301 (2);
5251 (ii) information provided to the governmental entity for the purpose of complying with
5252 a financial assurance requirement; or
5253 (iii) records that must be disclosed in accordance with another statute;
5254 (c) records of independent state agencies if the disclosure of those records would
5255 conflict with the fiduciary obligations of the agency;
5256 (d) other records containing data on individuals the disclosure of which constitutes a
5257 clearly unwarranted invasion of personal privacy;
5258 (e) records provided by the United States or by a government entity outside the state
5259 that are given with the requirement that the records be managed as private records, if the
5260 providing entity states in writing that the record would not be subject to public disclosure if
5261 retained by it; and
5262 (f) any portion of a record in the custody of the Division of Aging and Adult Services,
5263 created in Section 62A-3-102 , that may disclose, or lead to the discovery of, the identity of a
5264 person who made a report of alleged abuse, neglect, or exploitation of a vulnerable adult.

5265 (3) (a) As used in this Subsection (3), "medical records" means medical reports,
5266 records, statements, history, diagnosis, condition, treatment, and evaluation.
5267 (b) Medical records in the possession of the University of Utah Hospital, its clinics,
5268 doctors, or affiliated entities are not private records or controlled records under Section
5269 63G-2-304 when the records are sought:
5270 (i) in connection with any legal or administrative proceeding in which the patient's
5271 physical, mental, or emotional condition is an element of any claim or defense; or
5272 (ii) after a patient's death, in any legal or administrative proceeding in which any party
5273 relies upon the condition as an element of the claim or defense.
5274 (c) Medical records are subject to production in a legal or administrative proceeding
5275 according to state or federal statutes or rules of procedure and evidence as if the medical
5276 records were in the possession of a nongovernmental medical care provider.
5277 Section 111. Section 63J-1-602 is amended to read:
5278 63J-1-602. Nonlapsing accounts and funds.
5279 (1) The following revenue collections, appropriations from a fund or account, and
5280 appropriations to a program are nonlapsing:
5281 (a) appropriations made to the Legislature and its committees;
5282 (b) funds collected by the grain grading program, as provided in Section 4-2-2 ;
5283 (c) the Salinity Offset Fund created in Section 4-2-8.5 ;
5284 (d) the Invasive Species Mitigation Fund created in Section 4-2-8.7 ;
5285 (e) funds collected by pesticide dealer license registration fees, as provided in Section
5286 4-14-3 ;
5287 (f) funds collected by pesticide applicator business registration fees, as provided in
5288 Section 4-14-13 ;
5289 (g) the Rangeland Improvement Fund created in Section 4-20-2 ;
5290 (h) funds deposited as dedicated credits under the Insect Infestation Emergency Control
5291 Act, as provided in Section 4-35-6 ;
5292 (i) the Percent-for-Art Program created in Section 9-6-404 ;
5293 (j) the Centennial History Fund created in Section 9-8-604 ;
5294 (k) the Uintah Basin Revitalization Fund, as provided in Section 9-10-108 ;
5295 (l) the Navajo Revitalization Fund created in Section 9-11-104 ;

5296 (m) the LeRay McAllister Critical Land Conservation Program created in Section
5297 11-38-301 ;
5298 (n) the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 ;
5299 (o) fees deposited as dedicated credits for hazardous waste plan reviews, as provided in
5300 Section 19-6-120 ;
5301 (p) an appropriation made to the Division of Wildlife Resources for the appraisal and
5302 purchase of lands under the Pelican Management Act, as provided in Section 23-21a-6 ;
5303 (q) award monies under the Crime Reduction Assistance Program, as provided under
5304 Section 24-1-19 ;
5305 (r) funds collected from the emergency medical services grant program, as provided in
5306 Section 26-8a-207 ;
5307 (s) fees and other funding available to purchase training equipment and to administer
5308 tests and conduct quality assurance reviews, as provided in Section 26-8a-208 ;
5309 (t) funds collected as a result of a sanction under Section 1919 of Title XIX of the
5310 federal Social Security Act, as provided in Section 26-18-3 ;
5311 (u) the Utah Health Care Workforce Financial Assistance Program created in Section
5312 26-46-102 ;
5313 (v) monies collected from subscription fees for publications prepared or distributed by
5314 the insurance commissioner, as provided in Section 31A-2-208 ;
5315 (w) monies received by the Insurance Department for administering, investigating
5316 under, and enforcing the Insurance Fraud Act, as provided in Section 31A-31-108 ;
5317 (x) certain monies received for penalties paid under the Insurance Fraud Act, as
5318 provided in Section 31A-31-109 ;
5319 (y) the fund for operating the state's Federal Health Care Tax Credit Program, as
5320 provided in Section 31A-38-104 ;
5321 (z) certain funds in the Department of Workforce Services' program for the education,
5322 training, and transitional counseling of displaced homemakers, as provided in Section
5323 35A-3-114 ;
5324 (aa) the Employment Security Administration Fund created in Section 35A-4-505 ;
5325 (bb) the Special Administrative Expense Fund created in Section 35A-4-506 ;
5326 (cc) funding for a new program or agency that is designated as nonlapsing under

5327 Section 36-24-101 ;
5328 (dd) the Oil and Gas Conservation Account created in Section 40-6-14.5 ;
5329 (ee) funds available to the State Tax Commission for purchase and distribution of
5330 license plates and decals, as provided in Section 41-1a-1201 ;
5331 (ff) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
5332 provided in Section 41-1a-1221 ;
5333 (gg) certain fees collected for administering and enforcing the Motor Vehicle Business
5334 Regulation Act, as provided in Section 41-3-601 ;
5335 (hh) certain fees for the cost of electronic payments under the Motor Vehicle Business
5336 Regulation Act, as provided in Section 41-3-604 ;
5337 (ii) the Off-Highway Access and Education Restricted Account created in Section
5338 41-22-19.5 ;
5339 (jj) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
5340 provided in Section 41-22-36 ;
5341 (kk) monies collected under the Notaries Public Reform Act, as provided under
5342 46-1-23 ;
5343 (ll) certain funds associated with the Law Enforcement Operations Account, as
5344 provided in Section 51-9-411 ;
5345 (mm) the Public Safety Honoring Heroes Restricted Account created in Section
5346 53-1-118 ;
5347 (nn) funding for the Search and Rescue Financial Assistance Program, as provided in
5348 Section 53-2-107 ;
5349 (oo) appropriations made to the Department of Public Safety from the Department of
5350 Public Safety Restricted Account, as provided in Section 53-3-106 ;
5351 (pp) appropriations to the Motorcycle Rider Education Program, as provided in Section
5352 53-3-905 ;
5353 (qq) fees collected by the State Fire Marshal Division under the Utah Fire Prevention
5354 and Safety Act, as provided in Section 53-7-314 ;
5355 (rr) the DNA Specimen Restricted Account created in Section 53-10-407 ;
5356 (ss) the minimum school program, as provided in Section 53A-17a-105 ;
5357 (tt) certain funds appropriated from the Uniform School Fund to the State Board of

5358 Education for new teacher bonus and performance-based compensation plans, as provided in
5359 Section 53A-17a-148 ;
5360 (uu) certain funds appropriated from the Uniform School Fund to the State Board of
5361 Education for implementation of proposals to improve mathematics achievement test scores, as
5362 provided in Section 53A-17a-152 ;
5363 (vv) the School Building Revolving Account created in Section 53A-21-401 ;
5364 (ww) monies received by the State Office of Rehabilitation for the sale of certain
5365 products or services, as provided in Section 53A-24-105 ;
5366 (xx) the State Board of Regents, as provided in Section 53B-6-104 ;
5367 (yy) certain funds appropriated from the General Fund to the State Board of Regents
5368 for teacher preparation programs, as provided in Section 53B-6-104 ;
5369 (zz) a certain portion of monies collected for administrative costs under the School
5370 Institutional Trust Lands Management Act, as provided under Section 53C-3-202 ;
5371 (aaa) certain surcharges on residence and business telecommunications access lines
5372 imposed by the Public Service Commission, as provided in Section 54-8b-10 ;
5373 (bbb) certain fines collected by the Division of Occupational and Professional
5374 Licensing for violation of unlawful or unprofessional conduct that are used for education and
5375 enforcement purposes, as provided in Section 58-17b-505 ;
5376 (ccc) the Nurse Education and Enforcement Fund created in Section 58-31b-103 ;
5377 (ddd) funding of the controlled substance database, as provided in Section 58-37-7.7 ;
5378 (eee) the Certified Nurse Midwife Education and Enforcement Fund created in Section
5379 58-44a-103 ;
5380 (fff) funding for the building inspector's education program, as provided in Section
5381 58-56-9 ;
5382 (ggg) certain fines collected by the Division of Occupational and Professional
5383 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
5384 provided in Section 58-63-103 ;
5385 (hhh) the Professional Geologist Education and Enforcement Fund created in Section
5386 58-76-103 ;
5387 (iii) certain monies in the Water Resources Conservation and Development Fund, as
5388 provided in Section 59-12-103 ;

5389 (jjj) funds paid to the Division of Real Estate for the cost of a criminal background
5390 check for principal broker, associate broker, and sales agent licenses, as provided in Section
5391 [ 61-2-9 ] 61-2f-204 ;
5392 (kkk) the Utah Housing Opportunity Restricted Account created in Section [ 61-2-28 ]
5393 61-2-204 ;
5394 (lll) funds paid to the Division of Real Estate for the cost of a criminal background
5395 check for a mortgage loan license, as provided in Section 61-2c-202 ;
5396 (mmm) funds paid to the Division of Real Estate in relation to examination of records
5397 in an investigation, as provided in Section 61-2c-401 ;
5398 (nnn) certain funds donated to the Department of Human Services, as provided in
5399 Section 62A-1-111 ;
5400 (ooo) certain funds donated to the Division of Child and Family Services, as provided
5401 in Section 62A-4a-110 ;
5402 (ppp) the Mental Health Therapist Grant and Scholarship Program, as provided in
5403 Section 62A-13-109 ;
5404 (qqq) assessments for DUI violations that are forwarded to an account created by a
5405 county treasurer, as provided in Section 62A-15-503 ;
5406 (rrr) appropriations to the Division of Services for People with Disabilities, as provided
5407 in Section 62A-5-102 ;
5408 (sss) certain donations to the Division of Substance Abuse and Mental Health, as
5409 provided in Section 62A-15-103 ;
5410 (ttt) certain funds received by the Division of Parks and Recreation from the sale or
5411 disposal of buffalo, as provided under Section 63-11-19.2 ;
5412 (uuu) revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
5413 Park, or Jordan River State Park, as provided under Section 63-11-19.5 ;
5414 (vvv) revenue for golf user fees at the Green River State Park, as provided under
5415 Section 63-11-19.6 ;
5416 (www) the Centennial Nonmotorized Paths and Trail Crossings Program created under
5417 Section 63-11a-503 ;
5418 (xxx) the Bonneville Shoreline Trail Program created under Section 63-11a-504 ;
5419 (yyy) the account for the Utah Geological Survey, as provided in Section 63-73-10 ;

5420 (zzz) the Risk Management Fund created under Section 63A-4-201 ;
5421 (aaaa) the Child Welfare Parental Defense Fund created in Section 63A-11-203 ;
5422 (bbbb) the Constitutional Defense Restricted Account created in Section 63C-4-103 ;
5423 (cccc) a portion of the funds appropriated to the Utah Seismic Safety Commission, as
5424 provided in Section 63C-6-104 ;
5425 (dddd) funding for the Medical Education Program administered by the Medical
5426 Education Council, as provided in Section 63C-8-102 ;
5427 (eeee) certain monies payable for commission expenses of the Pete Suazo Utah
5428 Athletic Commission, as provided under Section 63C-11-301 ;
5429 (ffff) funds collected for publishing the Division of Administrative Rules' publications,
5430 as provided in Section 63G-3-402 ;
5431 (gggg) the appropriation to fund the Governor's Office of Economic Development's
5432 Enterprise Zone Act, as provided in Section 63M-1-416 ;
5433 (hhhh) the Tourism Marketing Performance Account, as provided in Section
5434 63M-1-1406 ;
5435 (iiii) certain funding for rural development provided to the Office of Rural
5436 Development in the Governor's Office of Economic Development, as provided in Section
5437 63M-1-1604 ;
5438 (jjjj) certain monies in the Development for Disadvantaged Rural Communities
5439 Restricted Account, as provided in Section 63M-1-2003 ;
5440 (kkkk) appropriations to the Utah Science Technology and Research Governing
5441 Authority, created under Section 63M-2-301 , as provided under Section 63M-3-302 ;
5442 (llll) certain monies in the Rural Broadband Service Fund, as provided in Section
5443 63M-1-2303 ;
5444 (mmmm) funds collected from monthly offender supervision fees, as provided in
5445 Section 64-13-21.2 ;
5446 (nnnn) funds collected by the housing of state probationary inmates or state parole
5447 inmates, as provided in Subsection 64-13e-104 (2);
5448 (oooo) the Sovereign Lands Management account created in Section 65A-5-1 ;
5449 (pppp) certain forestry and fire control funds utilized by the Division of Forestry, Fire,
5450 and State Lands, as provided in Section 65A-8-103 ;

5451 (qqqq) the Department of Human Resource Management user training program, as
5452 provided in Section 67-19-6 ;
5453 (rrrr) funds for the University of Utah Poison Control Center program, as provided in
5454 Section 69-2-5.5 ;
5455 (ssss) appropriations to the Transportation Corridor Preservation Revolving Loan
5456 Fund, as provided in Section 72-2-117 ;
5457 (tttt) appropriations to the Local Transportation Corridor Preservation Fund, as
5458 provided in Section 72-2-117.5 ;
5459 (uuuu) appropriations to the Tollway Restricted Special Revenue Fund, as provided in
5460 Section 77-2-120 ;
5461 (vvvv) appropriations to the Aeronautics Construction Revolving Loan Fund, as
5462 provided in Section 77-2-122 ;
5463 (wwww) appropriations to the State Park Access Highways Improvement Program, as
5464 provided in Section 72-3-207 ;
5465 (xxxx) the Traffic Noise Abatement Program created in Section 72-6-112 ;
5466 (yyyy) certain funds received by the Office of the State Engineer for well drilling fines
5467 or bonds, as provided in Section 73-3-25 ;
5468 (zzzz) certain monies appropriated to increase the carrying capacity of the Jordan River
5469 that are transferred to the Division of Parks and Recreation, as provided in Section 73-10e-1 ;
5470 (aaaaa) certain fees for the cost of electronic payments under the State Boating Act, as
5471 provided in Section 73-18-25 ;
5472 (bbbbb) certain monies appropriated from the Water Resources Conservation and
5473 Development Fund, as provided in Section 73-23-2 ;
5474 (ccccc) the Lake Powell Pipeline Project Operation and Maintenance Fund created in
5475 Section 73-28-404 ;
5476 (ddddd) certain funds in the Water Development and Flood Mitigation Reserve
5477 Account, as provided in Section 73-103-1 ;
5478 (eeeee) certain funds appropriated for compensation for special prosecutors, as
5479 provided in Section 77-10a-19 ;
5480 (fffff) the Indigent Aggravated Murder Defense Trust Fund created in Section
5481 77-32-601 ;

5482 (ggggg) the Indigent Felony Defense Trust Fund created in Section 77-32-701 ;
5483 (hhhhh) funds donated or paid to a juvenile court by private sources, as provided in
5484 Subsection 78A-6-203 (1)(c);
5485 (iiiii) a state rehabilitative employment program, as provided in Section 78A-6-210 ;
5486 and
5487 (jjjjj) fees from the issuance and renewal of licenses for certified court interpreters, as
5488 provided in Section 78B-1-146 .
5489 (2) No revenue collection, appropriation from a fund or account, or appropriation to a
5490 program may be treated as nonlapsing unless:
5491 (a) it is expressly referenced by this section;
5492 (b) it is designated in a condition of appropriation in the appropriations bill; or
5493 (c) nonlapsing authority is granted under Section 63J-1-603 .
5494 (3) Each legislative appropriations subcommittee shall review the accounts and funds
5495 that have been granted nonlapsing authority under this section or Section 63J-1-603 .
5496 Section 112. Section 70D-3-102 is amended to read:
5497 70D-3-102. Definitions.
5498 As used in this chapter:
5499 (1) "Administrative or clerical tasks" means:
5500 (a) the receipt, collection, and distribution of information common for the process or
5501 underwriting of a loan in the mortgage industry; and
5502 (b) a communication with a consumer to obtain information necessary for the
5503 processing or underwriting of a residential mortgage loan.
5504 (2) "Affiliate" shall be defined by the commissioner by rule made in accordance with
5505 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
5506 (3) "Applicant" means an individual applying for a license under this chapter.
5507 (4) "Approved examination provider" means a person approved by the nationwide
5508 database as an approved test provider.
5509 (5) "Business as a loan originator" means for compensation or in the expectation of
5510 compensation to engage in an act that makes an individual a loan originator.
5511 (6) "Clerical or support duties" includes after the receipt of an application for a
5512 residential mortgage loan:

5513 (a) the receipt, collection, distribution, and analysis of information common for the
5514 processing or underwriting of a residential mortgage loan; and
5515 (b) communicating with a consumer to obtain the information necessary for the
5516 processing or underwriting of the residential mortgage loan, to the extent that the
5517 communication does not include:
5518 (i) offering or negotiating a residential mortgage loan rate or term; or
5519 (ii) counseling a consumer about a residential mortgage loan rate or term.
5520 (7) "Compensation" means anything of economic value that is paid, loaned, granted,
5521 given, donated, or transferred to an individual or entity for or in consideration of:
5522 (a) services;
5523 (b) personal or real property; or
5524 (c) another thing of value.
5525 (8) "Continuing education" means education taken by an individual licensed under this
5526 chapter in order to meet the education requirements imposed by Section 70D-3-303 to renew a
5527 license under this chapter.
5528 (9) "Covered subsidiary" means a subsidiary that is:
5529 (a) owned and controlled by a depository institution; and
5530 (b) regulated by a federal banking agency.
5531 (10) "Federal banking agency" means:
5532 (a) the Board of Governors of the Federal Reserve System;
5533 (b) the Comptroller of the Currency;
5534 (c) the Director of the Office of Thrift Supervision;
5535 (d) the National Credit Union Administration; or
5536 (e) the Federal Deposit Insurance Corporation.
5537 (11) "Licensee" means an individual licensed under this chapter.
5538 (12) (a) Except as provided in Subsection (12)(b), "loan originator" means an
5539 individual who for compensation or in the expectation of compensation:
5540 (i) takes a residential mortgage loan application; or
5541 (ii) offers or negotiates a term of a residential mortgage loan.
5542 (b) "Loan originator" does not include:
5543 (i) an individual who is engaged solely as a loan processor or underwriter;

5544 (ii) unless compensated by a lender, broker, other loan originator, or an agent of a
5545 lender, broker, or other loan originator, a person who:
5546 (A) only performs real estate brokerage activities; and
5547 (B) is licensed under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate
5548 Licensing and Practices Act;
5549 (iii) a person who is solely involved in extension of credit relating to a timeshare plan,
5550 as defined in 11 U.S.C. Sec. 101(53D); or
5551 (iv) an attorney licensed to practice law in this state who, in the course of the attorney's
5552 practice as an attorney, assists a person in obtaining a residential mortgage loan.
5553 (13) "Loan processor or underwriter" means an individual who as an employee
5554 performs clerical or support duties:
5555 (a) at the direction of and subject to the supervision and instruction of:
5556 (i) a licensee; or
5557 (ii) a registered loan originator; and
5558 (b) as an employee of:
5559 (i) the licensee; or
5560 (ii) a registered loan originator.
5561 (14) "Nationwide database" means the Nationwide Mortgage Licensing System and
5562 Registry, authorized under Secure and Fair Enforcement for Mortgage Licensing, 12 U.S.C.
5563 Sec. 5101, et seq.
5564 (15) "Nontraditional mortgage product" means a mortgage product other than a 30-year
5565 fixed rate mortgage.
5566 (16) "Owned and controlled by a depository institution" may be defined by rule made
5567 by the commissioner in accordance with Title 63G, Chapter 3, Utah Administrative
5568 Rulemaking Act.
5569 (17) "Prelicensing education" means education taken by an individual seeking to be
5570 licensed under this chapter in order to meet the education requirements imposed by Section
5571 70D-3-301 for an individual to obtain a license under this chapter.
5572 (18) "Registered loan originator" means an individual who:
5573 (a) engages in an act as a loan originator only as an employee of:
5574 (i) a depository institution;

5575 (ii) a covered subsidiary; or
5576 (iii) an institution regulated by the Farm Credit Administration; and
5577 (b) is registered with, and maintains a unique identifier through, the nationwide
5578 database.
5579 (19) (a) Subject to Subsection (19)(b), "residential mortgage loan" means:
5580 (i) a mortgage loan; or
5581 (ii) a loan that is:
5582 (A) secured by a mortgage; and
5583 (B) subject to Title 70C, Utah Consumer Credit Code.
5584 (b) A loan described in Subsection (19)(a) is a "residential mortgage loan" only if the
5585 mortgage securing the loan is on:
5586 (i) a dwelling located in the state; or
5587 (ii) real property located in the state, upon which is constructed or intended to be
5588 constructed a dwelling.
5589 (20) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
5590 Section 113. Section 72-5-116 is amended to read:
5591 72-5-116. Exemption from state licensure.
5592 In accordance with Section [ 61-2-3 ] 61-2f-202 , an employee or authorized agent
5593 working under the oversight of the department when engaging in an act on behalf of the
5594 department related to one or more of the following is exempt from licensure under Title 61,
5595 Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and Practices Act:
5596 (1) acquiring real [property] estate pursuant to Section 72-5-103 ;
5597 (2) disposing of real [property] estate pursuant to Section 72-5-111 ;
5598 (3) providing services that constitute property management, as defined in Section
5599 [ 61-2-2 ] 61-2f-102 ; or
5600 (4) leasing of real [property] estate.
5601 Section 114. Repealer.
5602 This bill repeals:
5603 Section 61-2-4, One act for compensation qualifies person as broker or sales agent.
5604 Section 61-2b-11, Curriculum to be determined by board.
5605 Section 61-2b-16, Certification and licensing examinations.

5606 Section 61-2c-207, Reciprocal licensure.
5607 Section 61-2c-208, Activation and inactivation of license.
5608 Section 115. Coordinating H.B. 275 with H.B. 53 -- Technical amendments.
5609 If this H.B. 275 and H.B. 53, Foreclosure Rescue and Loan Modification Amendments,
5610 both pass, it is the intent of the Legislature that the Office of Legislative Research and General
5611 Counsel in preparing the Utah Code database for publication:
5612 (1) modify Subsection 61-2c-102 (1)(y) as amended in this bill to read as follows:
5613 "[(v)] (y) (i) Except as provided in Subsection (1)[(v)](y)(ii), "mortgage loan
5614 originator" means an individual who for compensation or in expectation of compensation:
5615 (A) (I) takes a residential mortgage loan application; or
5616 [(B)] (II) offers or negotiates terms of a residential mortgage loan[.] for the purpose of:
5617 (Aa) a purchase;
5618 (Bb) a refinance;
5619 (Cc) a loan modification assistance; or
5620 (Dd) a foreclosure rescue; and
5621 (B) is licensed as a mortgage loan originator in accordance with this chapter."; and
5622 (2) treat the amendments in this bill to Subsections 61-2f-102 (1) and (14) as
5623 superseding the amendments in H.B. 53 to the corresponding subsections, except that the
5624 Office of Legislative Research and General Counsel shall correct the internal subsection cites
5625 in Section 61-2f-102 accordingly.