First Substitute H.B. 332

Representative Gage Froerer proposes the following substitute bill:

1 REAL ESTATE AMENDMENTS
2 2014 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Gage Froerer
5 Senate Sponsor: J. Stuart Adams
6
7 LONG TITLE
8 General Description:
9 This bill amends provisions of Title 61, Securities Division - Real Estate Division.
10 Highlighted Provisions:
11 This bill:
12 . defines terms;
13 . modifies the scope of the business of residential mortgage loans;
14 . establishes a procedure for the voluntary surrender of a license issued under Title
15 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act; Title 61,
16 Chapter 2f, Real Estate Licensing and Practices Act; and Title 61, Chapter 2g, Real
17 Estate Appraiser Licensing and Certification Act;
18 . requires certain state agencies to obtain the concurrence of the Real Estate
19 Commission before the agency makes a rule that changes the rights, duties, or
20 obligations of buyers, sellers, or persons licensed under Title 61, Chapter 2f, Real
21 Estate Licensing and Practices Act, in relation to a real estate transaction between
22 private parties;
23 . clarifies the procedure for renewal of an expired license under Title 61, Chapter 2f,
24 Real Estate Licensing and Practices Act;
25 . provides that the division may send a license issued under Title 61, Chapter 2f, Real

26 Estate Licensing and Practices Act, by mail or by email;
27 . clarifies the circumstances under which a buyer's principal broker may directly
28 contact a seller who is represented by a principal broker;
29 . provides a statute of limitations for certain disciplinary actions;
30 . clarifies the effect of the expiration, revocation, or suspension of a license issued
31 under Title 61, Chapter 2f, Real Estate Licensing and Practices Act;
32 . provides that the education and experience requirements for a licensee under Title
33 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act, must meet or
34 exceed the requirements established by the Appraisal Qualification Board;
35 . provides that the Real Estate Appraiser Licensing and Certification Board may
36 delegate certain duties to the Division of Real Estate;
37 . establishes procedures to request the review of certain decisions relating to
38 licensure, certification, and registration under Title 61, Chapter 2g, Real Estate
39 Appraiser Licensing and Certification Act;
40 . broadens the applicability of the background check requirements described in Title
41 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act;
42 . clarifies the standards for reciprocal licensure under Title 61, Chapter 2g, Real
43 Estate Appraiser Licensing and Certification Act; and
44 . makes technical and conforming changes.
45 Money Appropriated in this Bill:
46 None
47 Other Special Clauses:
48 None
49 Utah Code Sections Affected:
50 AMENDS:
51 61-2c-102 , as last amended by Laws of Utah 2012, Chapter 166
52 61-2c-402.1 , as last amended by Laws of Utah 2009, Chapter 372
53 61-2f-103 , as last amended by Laws of Utah 2010, Chapter 286 and renumbered and
54 amended by Laws of Utah 2010, Chapter 379
55 61-2f-204 , as last amended by Laws of Utah 2013, Chapter 292
56 61-2f-205 , as renumbered and amended by Laws of Utah 2010, Chapter 379

57 61-2f-308 , as renumbered and amended by Laws of Utah 2010, Chapter 379
58 61-2f-402 , as renumbered and amended by Laws of Utah 2010, Chapter 379
59 61-2f-406 , as renumbered and amended by Laws of Utah 2010, Chapter 379
60 61-2g-102 , as last amended by Laws of Utah 2012, Chapter 166
61 61-2g-205 , as renumbered and amended by Laws of Utah 2011, Chapter 289
62 61-2g-302 , as enacted by Laws of Utah 2011, Chapter 289
63 61-2g-310 , as renumbered and amended by Laws of Utah 2011, Chapter 289
64 61-2g-311 , as renumbered and amended by Laws of Utah 2011, Chapter 289
65 61-2g-312 , as last amended by Laws of Utah 2012, Chapter 166
66 61-2g-313 , as renumbered and amended by Laws of Utah 2011, Chapter 289
67 61-2g-314 , as renumbered and amended by Laws of Utah 2011, Chapter 289
68 61-2g-501 , as renumbered and amended by Laws of Utah 2011, Chapter 289
69 ENACTS:
70 61-2c-210 , Utah Code Annotated 1953
71 61-2f-208 , Utah Code Annotated 1953
72 61-2f-410 , Utah Code Annotated 1953
73 61-2g-304.5 , Utah Code Annotated 1953
74 61-2g-316 , Utah Code Annotated 1953
75
76 Be it enacted by the Legislature of the state of Utah:
77 Section 1. Section 61-2c-102 is amended to read:
78 61-2c-102. Definitions.
79 (1) As used in this chapter:
80 (a) "Affiliation" means that a mortgage loan originator is associated with a principal
81 lending manager in accordance with Section 61-2c-209 .
82 (b) "Applicant" means a person applying for a license under this chapter.
83 (c) "Approved examination provider" means a person approved by the nationwide
84 database as an approved test provider.
85 (d) "Associate lending manager" means an individual who:
86 (i) qualifies under this chapter as a principal lending manager; and
87 (ii) works by or on behalf of another principal lending manager in transacting the

88 business of residential mortgage loans.
89 (e) "Branch lending manager" means an individual who is:
90 (i) licensed as a lending manager; and
91 (ii) designated in the nationwide database by the individual's sponsoring entity as being
92 responsible to work from a branch office and to supervise the business of residential mortgage
93 loans that is conducted at the branch office.
94 (f) "Branch office" means a licensed entity's office:
95 (i) for the transaction of the business of residential mortgage loans regulated under this
96 chapter;
97 (ii) other than the main office of the licensed entity; and
98 (iii) that operates under:
99 (A) the same business name as the licensed entity; or
100 (B) another trade name that is registered with the division under the entity license.
101 (g) "Business day" means a day other than:
102 (i) a Saturday;
103 (ii) a Sunday; or
104 (iii) a federal or state holiday.
105 (h) (i) "Business of residential mortgage loans" means for compensation or in the
106 expectation of compensation to:
107 (A) engage in an act that makes an individual a mortgage loan originator;
108 (B) make or originate a residential mortgage loan;
109 (C) directly or indirectly solicit a residential mortgage loan for another;
110 (D) unless excluded under Subsection (1)(h)(ii), render services related to the
111 origination of a residential mortgage loan including:
112 (I) preparing a loan package;
113 (II) communicating with the borrower or lender;
114 (III) advising on a loan term; [or]
115 (IV) acting as a loan processor without being employed by a licensed entity; or
116 (V) except as provided in Subsection (1)(h)(ii)(B) or (C), acting as a loan underwriter;
117 or
118 (E) engage in loan modification assistance.

119 (ii) "Business of residential mortgage loans" does not include:
120 (A) if working as an employee under the direction of and subject to the supervision and
121 instruction of a person licensed under this chapter, the performance of a clerical or support duty
122 [such as], including:
123 (I) the receipt, collection, or distribution of information common for the processing or
124 underwriting of a loan in the mortgage industry other than taking an application;
125 (II) communicating with a consumer to obtain information necessary for the processing
126 or underwriting of a residential mortgage loan;
127 (III) word processing;
128 (IV) sending correspondence;
129 (V) assembling files; or
130 (VI) acting as a loan processor;
131 (B) acting as a loan underwriter under the direction and control of an employer
132 licensed under this chapter;
133 (C) acting as a loan underwriter, as an employee of a depository institution, exclusively
134 in the capacity of the depository institution's employee;
135 [(B)] (D) ownership of an entity that engages in the business of residential mortgage
136 loans if the owner does not personally perform the acts listed in Subsection (1)(h)(i); [or]
137 [(C)] (E) except if an individual will engage in an activity as a mortgage loan
138 originator, acting in one or more of the following capacities:
139 (I) a loan wholesaler;
140 (II) an account executive for a loan wholesaler;
141 (III) a loan underwriter;
142 (IV) a loan closer; or
143 (V) funding a loan; or
144 [(D)] (F) if employed by a person who owns or services an existing residential
145 mortgage loan, the direct negotiation with the borrower for the purpose of loan modification.
146 (i) "Certified education provider" means a person who is certified under Section
147 61-2c-204.1 to provide one or more of the following:
148 (i) Utah-specific prelicensing education; or
149 (ii) Utah-specific continuing education.

150 (j) "Closed-end" means a loan:
151 (i) with a fixed amount borrowed; and
152 (ii) that does not permit additional borrowing secured by the same collateral.
153 (k) "Commission" means the Residential Mortgage Regulatory Commission created in
154 Section 61-2c-104 .
155 (l) "Compensation" means anything of economic value that is paid, loaned, granted,
156 given, donated, or transferred to an individual or entity for or in consideration of:
157 (i) services;
158 (ii) personal or real property; or
159 (iii) another thing of value.
160 (m) "Concurrence" means that entities given a concurring role must jointly agree for
161 the action to be taken.
162 (n) "Continuing education" means education taken by an individual licensed under this
163 chapter in order to meet the education requirements imposed by Sections 61-2c-204.1 and
164 61-2c-205 to renew a license under this chapter.
165 (o) "Control," as used in Subsection 61-2c-105 (2)(f), means the power to directly or
166 indirectly:
167 (i) direct or exercise a controlling interest over:
168 (A) the management or policies of an entity; or
169 (B) the election of a majority of the directors, officers, managers, or managing partners
170 of an entity;
171 (ii) vote 20% or more of a class of voting securities of an entity by an individual; or
172 (iii) vote more than 5% of a class of voting securities of an entity by another entity.
173 (p) (i) "Control person" means an individual identified by an entity registered with the
174 nationwide database as being an individual directing the management or policies of the entity.
175 (ii) "Control person" may include one of the following who is identified as provided in
176 Subsection (1)(p)(i):
177 (A) a manager;
178 (B) a managing partner;
179 (C) a director;
180 (D) an executive officer; or

181 (E) an individual who performs a function similar to an individual listed in this
182 Subsection (1)(p)(ii).
183 (q) "Depository institution" is as defined in Section 7-1-103 .
184 (r) "Director" means the director of the division.
185 (s) "Division" means the Division of Real Estate.
186 (t) "Dwelling" means a residential structure attached to real property that contains one
187 to four units including any of the following if used as a residence:
188 (i) a condominium unit;
189 (ii) a cooperative unit;
190 (iii) a manufactured home; or
191 (iv) a house.
192 (u) "Employee":
193 (i) means an individual:
194 (A) whose manner and means of work performance are subject to the right of control
195 of, or are controlled by, another person; and
196 (B) whose compensation for federal income tax purposes is reported, or is required to
197 be reported, on a W-2 form issued by the controlling person; and
198 (ii) does not include an independent contractor who performs duties other than at the
199 direction of, and subject to the supervision and instruction of, another person.
200 (v) "Entity" means:
201 (i) a corporation;
202 (ii) a limited liability company;
203 (iii) a partnership;
204 (iv) a company;
205 (v) an association;
206 (vi) a joint venture;
207 (vii) a business trust;
208 (viii) a trust; or
209 (ix) another organization.
210 (w) "Executive director" means the executive director of the Department of Commerce.
211 (x) "Federal licensing requirements" means Secure and Fair Enforcement for Mortgage

212 Licensing, 12 U.S.C. Sec. 5101 et seq.
213 (y) "Foreclosure rescue" means, for compensation or with the expectation of receiving
214 valuable consideration, to:
215 (i) engage, or offer to engage, in an act that:
216 (A) the person represents will assist a borrower in preventing a foreclosure; and
217 (B) relates to a transaction involving the transfer of title to residential real property; or
218 (ii) as an employee or agent of another person:
219 (A) solicit, or offer that the other person will engage in an act described in Subsection
220 (1)(y)(i); or
221 (B) negotiate terms in relationship to an act described in Subsection (1)(y)(i).
222 (z) "Inactive status" means a dormant status into which an unexpired license is placed
223 when the holder of the license is not currently engaging in the business of residential mortgage
224 loans.
225 (aa) "Lending manager" means an individual licensed as a lending manager under
226 Section 61-2c-206 to transact the business of residential mortgage loans.
227 (bb) "Licensee" means a person licensed with the division under this chapter.
228 (cc) "Licensing examination" means the examination required by Section 61-2c-204.1
229 or 61-2c-206 for an individual to obtain a license under this chapter.
230 (dd) "Loan modification assistance" means, for compensation or with the expectation
231 of receiving valuable consideration, to:
232 (i) act, or offer to act, on behalf of a person to:
233 (A) obtain a loan term of a residential mortgage loan that is different from an existing
234 loan term including:
235 (I) an increase or decrease in an interest rate;
236 (II) a change to the type of interest rate;
237 (III) an increase or decrease in the principal amount of the residential mortgage loan;
238 (IV) a change in the number of required period payments;
239 (V) an addition of collateral;
240 (VI) a change to, or addition of, a prepayment penalty;
241 (VII) an addition of a cosigner; or
242 (VIII) a change in persons obligated under the existing residential mortgage loan; or

243 (B) substitute a new residential mortgage loan for an existing residential mortgage
244 loan; or
245 (ii) as an employee or agent of another person:
246 (A) solicit, or offer that the other person will engage in an act described in Subsection
247 (1)(dd)(i); or
248 (B) negotiate terms in relationship to an act described in Subsection (1)(dd)(i).
249 (ee) (i) Except as provided in Subsection (1)(ee)(ii), "mortgage loan originator" means
250 an individual who for compensation or in expectation of compensation:
251 (A) (I) takes a residential mortgage loan application; or
252 (II) offers or negotiates terms of a residential mortgage loan for the purpose of:
253 (Aa) a purchase;
254 (Bb) a refinance;
255 (Cc) a loan modification assistance; or
256 (Dd) a foreclosure rescue; and
257 (B) is licensed as a mortgage loan originator in accordance with this chapter.
258 (ii) "Mortgage loan originator" does not include a person who:
259 (A) is described in Subsection (1)(ee)(i), but who performs exclusively administrative
260 or clerical tasks as described in Subsection (1)(h)(ii)(A);
261 (B) (I) is licensed under Chapter 2f, Real Estate Licensing and Practices Act;
262 (II) performs only real estate brokerage activities; and
263 (III) receives no compensation from:
264 (Aa) a lender;
265 (Bb) a lending manager; or
266 (Cc) an agent of a lender or lending manager; or
267 (C) is solely involved in extension of credit relating to a timeshare plan, as defined in
268 11 U.S.C. Sec. 101(53D).
269 (ff) "Nationwide database" means the Nationwide Mortgage Licensing System and
270 Registry, authorized under federal licensing requirements.
271 (gg) "Nontraditional mortgage product" means a mortgage product other than a 30-year
272 fixed rate mortgage.
273 (hh) "Person" means an individual or entity.

274 (ii) "Prelicensing education" means education taken by an individual seeking to be
275 licensed under this chapter in order to meet the education requirements imposed by Section
276 61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
277 (jj) "Principal lending manager" means an individual:
278 (i) licensed as a lending manager under Section 61-2c-206 ; and
279 (ii) identified in the nationwide database by the individual's sponsoring entity as the
280 entity's principal lending manager.
281 (kk) "Record" means information that is:
282 (i) prepared, owned, received, or retained by a person; and
283 (ii) (A) inscribed on a tangible medium; or
284 (B) (I) stored in an electronic or other medium; and
285 (II) in a perceivable and reproducible form.
286 (ll) "Referral fee":
287 (i) means any fee, kickback, or thing of value tendered for a referral of business or a
288 service incident to or part of a residential mortgage loan transaction; and
289 (ii) does not mean a payment made:
290 (A) by a licensed entity to an individual employed by the entity;
291 (B) under a contractual incentive program; and
292 (C) according to rules made by the division in accordance with Title 63G, Chapter 3,
293 Utah Administrative Rulemaking Act.
294 (mm) "Residential mortgage loan" means an extension of credit, if:
295 (i) the loan or extension of credit is secured by a:
296 (A) mortgage;
297 (B) deed of trust; or
298 (C) consensual security interest;
299 (ii) the mortgage, deed of trust, or consensual security interest described in Subsection
300 (1)(mm)(i):
301 (A) is on a dwelling located in the state; and
302 (B) is created with the consent of the owner of the residential real property; and
303 (iii) solely for the purposes of defining "mortgage loan originator," the extension of
304 credit is primarily for personal, family, or household use.

305 (nn) "Sponsorship" means an association in accordance with Section 61-2c-209
306 between an individual licensed under this chapter and an entity licensed under this chapter.
307 (oo) "State" means:
308 (i) a state, territory, or possession of the United States;
309 (ii) the District of Columbia; or
310 (iii) the Commonwealth of Puerto Rico.
311 (pp) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
312 (qq) "Utah-specific" means an educational or examination requirement under this
313 chapter that relates specifically to Utah.
314 (2) (a) If a term not defined in this section is defined by rule, the term shall have the
315 meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
316 Utah Administrative Rulemaking Act.
317 (b) If a term not defined in this section is not defined by rule, the term shall have the
318 meaning commonly accepted in the business community.
319 Section 2. Section 61-2c-210 is enacted to read:
320 61-2c-210. Surrender of license.
321 (1) The division may, by written agreement, accept the voluntary surrender of a license
322 issued under this chapter.
323 (2) Tender and acceptance of a voluntary surrender of a license under Subsection (1):
324 (a) does not prevent the division from pursuing additional action, including
325 disciplinary action, that relates to the surrendered license and is authorized by this chapter or by
326 rules made under this chapter; and
327 (b) terminates all rights and privileges associated with the license.
328 (3) A person may restore the rights and privileges described in Subsection (2)(b) only if
329 the person reapplies for, and is granted, licensure in accordance with the requirements
330 described in this chapter.
331 (4) Any documentation relating to the tender and acceptance of a voluntary surrender is
332 a public record.
333 Section 3. Section 61-2c-402.1 is amended to read:
334 61-2c-402.1. Adjudicative proceedings -- Review.
335 (1) (a) Before an action described in Section 61-2c-402 may be taken, the division

336 shall:
337 (i) give notice to the person against whom the action is brought; and
338 (ii) commence an adjudicative proceeding.
339 (b) If after the adjudicative proceeding is commenced under Subsection (1)(a) the
340 presiding officer determines that a person required to be licensed under this chapter has
341 violated this chapter, the division may take an action described in Section 61-2c-402 by written
342 order.
343 (2) In accordance with Title 63G, Chapter 4, Administrative Procedures Act, a person
344 against whom action is taken under this section may seek review by the executive director of
345 the action.
346 (3) If a person prevails in a judicial appeal and the court finds that the state action was
347 undertaken without substantial justification, the court may award reasonable litigation expenses
348 to that individual or entity as provided under Title 78B, Chapter 8, Part 5, Small Business
349 Equal Access to Justice Act.
350 (4) (a) An order issued under this section takes effect 30 days after the service of the
351 order unless otherwise provided in the order.
352 (b) If an appeal of an order issued under this section is taken by a person, the division
353 may stay enforcement of the order in accordance with Section 63G-4-405 .
354 (5) If ordered by the court of competent jurisdiction, the division shall promptly take an
355 action described in Section 61-2c-402 against a license granted under this chapter.
356 (6) (a) Except as provided in Subsection (6)(b), the division, shall commence a
357 disciplinary action under this chapter no later than the earlier of the following:
358 (i) four years after the day on which the violation is reported to the division; or
359 (ii) 10 years after the day on which the violation occurred.
360 (b) The division may commence a disciplinary action under this chapter after the time
361 period described in Subsection (6)(a) expires if:
362 (i) (A) the disciplinary action is in response to a civil or criminal judgment or
363 settlement; and
364 (B) the division initiates the disciplinary action no later than one year after the day on
365 which the judgment is issued or the settlement is final; or
366 (ii) the division and the person subject to a disciplinary action enter into a written

367 stipulation to extend the time period described in Subsection (6)(a).
368 Section 4. Section 61-2f-103 is amended to read:
369 61-2f-103. Real Estate Commission.
370 (1) There is created within the division a Real Estate Commission. The commission
371 shall:
372 (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
373 make rules for the administration of this chapter that are not inconsistent with this chapter,
374 including:
375 (i) licensing of:
376 (A) a principal broker;
377 (B) an associate broker; and
378 (C) a sales agent;
379 (ii) registration of:
380 (A) an entity; and
381 (B) a branch office;
382 (iii) prelicensing and postlicensing education curricula;
383 (iv) examination procedures;
384 (v) the certification and conduct of:
385 (A) a real estate school;
386 (B) a course provider; or
387 (C) an instructor;
388 (vi) proper handling of money received by a licensee under this chapter;
389 (vii) brokerage office procedures and recordkeeping requirements;
390 (viii) property management;
391 (ix) standards of conduct for a licensee under this chapter;
392 (x) a rule made under Section 61-2f-307 regarding an undivided fractionalized
393 long-term estate; and
394 (xi) if the commission determines necessary, a rule as provided in Subsection
395 61-2f-306 (3) regarding a legal form;
396 (b) establish, with the concurrence of the division, a fee provided for in this chapter,
397 except a fee imposed under Part 5, Real Estate Education, Research, and Recovery Fund Act;

398 (c) conduct an administrative hearing not delegated by the commission to an
399 administrative law judge or the division relating to the:
400 (i) licensing of an applicant;
401 (ii) conduct of a licensee;
402 (iii) the certification or conduct of a real estate school, course provider, or instructor
403 regulated under this chapter; or
404 (iv) violation of this chapter by any person;
405 (d) with the concurrence of the director, impose a sanction as provided in Section
406 61-2f-404 ;
407 (e) advise the director on the administration and enforcement of a matter affecting the
408 division and the real estate sales and property management industries;
409 (f) advise the director on matters affecting the division budget;
410 (g) advise and assist the director in conducting real estate seminars; and
411 (h) perform other duties as provided by this chapter.
412 (2) (a) Except as provided in Subsection (2)(b), a state entity may not, without the
413 concurrence of the commission, make a rule that changes the rights, duties, or obligations of
414 buyers, sellers, or persons licensed under this chapter in relation to a real estate transaction
415 between private parties.
416 (b) Subsection (2)(a) does not apply to a rule made:
417 (i) under Title 31A, Insurance Code, or Title 7, Financial Institutions Act; or
418 (ii) by the Department of Commerce or any division or other rulemaking body within
419 the Department of Commerce.
420 [(2)] (3) (a) The commission shall be comprised of five members appointed by the
421 governor and approved by the Senate.
422 (b) Four of the commission members shall:
423 (i) have at least five years' experience in the real estate business; and
424 (ii) hold an active principal broker, associate broker, or sales agent license.
425 (c) One commission member shall be a member of the general public.
426 (d) The governor may not appoint a commission member described in Subsection [(2)]
427 (3)(b) who, at the time of appointment, resides in the same county in the state as another
428 commission member.

429 (e) At least one commission member described in Subsection [(2)] (3)(b) shall at the
430 time of an appointment reside in a county that is not a county of the first or second class.
431 [(3)] (4) (a) Except as required by Subsection [(3)] (4)(b), as terms of current
432 commission members expire, the governor shall appoint each new member or reappointed
433 member to a four-year term ending June 30.
434 (b) Notwithstanding the requirements of Subsection [(3)] (4)(a), the governor shall, at
435 the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
436 commission members are staggered so that approximately half of the commission is appointed
437 every two years.
438 (c) Upon the expiration of the term of a member of the commission, the member of the
439 commission shall continue to hold office until a successor is appointed and qualified.
440 (d) A commission member may not serve more than two consecutive terms.
441 (e) Members of the commission shall annually select one member to serve as chair.
442 [(4)] (5) When a vacancy occurs in the membership for any reason, the governor, with
443 the consent of the Senate, shall appoint a replacement for the unexpired term.
444 [(5)] (6) A member may not receive compensation or benefits for the member's service,
445 but may receive per diem and travel expenses in accordance with:
446 (a) Section 63A-3-106 ;
447 (b) Section 63A-3-107 ; and
448 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
449 63A-3-107 .
450 [(6)] (7) (a) The commission shall meet at least monthly.
451 (b) The director may call additional meetings:
452 (i) at the director's discretion;
453 (ii) upon the request of the chair; or
454 (iii) upon the written request of three or more commission members.
455 [(7)] (8) Three members of the commission constitute a quorum for the transaction of
456 business.
457 Section 5. Section 61-2f-204 is amended to read:
458 61-2f-204. Licensing fees and procedures -- Renewal fees and procedures.
459 (1) (a) Upon filing an application for an examination for a license under this chapter,

460 the applicant shall pay a nonrefundable fee established in accordance with Section 63J-1-504
461 for admission to the examination.
462 (b) An applicant for a principal broker, associate broker, or sales agent license shall
463 pay a nonrefundable fee as determined by the commission with the concurrence of the division
464 under Section 63J-1-504 for issuance of an initial license or license renewal.
465 (c) A license issued under this Subsection (1) shall be issued for a period of not less
466 than two years as determined by the division with the concurrence of the commission.
467 (d) (i) Any of the following applicants shall comply with this Subsection (1)(d):
468 (A) a new sales agent applicant;
469 (B) a principal broker applicant; or
470 (C) an associate broker applicant.
471 (ii) An applicant described in this Subsection (1)(d) shall:
472 (A) submit fingerprint cards in a form acceptable to the division at the time the license
473 application is filed; and
474 (B) consent to a criminal background check by the Utah Bureau of Criminal
475 Identification and the Federal Bureau of Investigation regarding the application.
476 (iii) The division shall request the Department of Public Safety to complete a Federal
477 Bureau of Investigation criminal background check for each applicant described in this
478 Subsection (1)(d) through the national criminal history system or any successor system.
479 (iv) The applicant shall pay the cost of the criminal background check and the
480 fingerprinting.
481 (v) Money paid to the division by an applicant for the cost of the criminal background
482 check is nonlapsing.
483 (e) (i) A license issued under Subsection (1)(d) is conditional, pending completion of
484 the criminal background check.
485 (ii) A license is immediately and automatically revoked if the criminal background
486 check discloses the applicant fails to accurately disclose a criminal history involving:
487 (A) the real estate industry; or
488 (B) a felony conviction on the basis of an allegation of fraud, misrepresentation, or
489 deceit.
490 (iii) If a criminal background check discloses that an applicant fails to accurately

491 disclose a criminal history other than one described in Subsection (1)(e)(ii), the division:
492 (A) shall review the application; and
493 (B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
494 Utah Administrative Rulemaking Act, may:
495 (I) place a condition on a license;
496 (II) place a restriction on a license;
497 (III) revoke a license; or
498 (IV) refer the application to the commission for a decision.
499 (iv) A person whose conditional license is automatically revoked under Subsection
500 (1)(e)(ii) or whose license is conditioned, restricted, or revoked under Subsection (1)(e)(iii)
501 may have a hearing after the action is taken to challenge the action. The hearing shall be
502 conducted in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
503 (v) The director shall designate one of the following to act as the presiding officer in a
504 hearing described in Subsection (1)(e)(iv):
505 (A) the division; or
506 (B) the division with the concurrence of the commission.
507 (vi) The decision on whether relief from an action under this Subsection (1)(e) will be
508 granted shall be made by the presiding officer.
509 (vii) Relief from an automatic revocation under Subsection (1)(e)(ii) may be granted
510 only if:
511 (A) the criminal history upon which the division based the revocation:
512 (I) did not occur; or
513 (II) is the criminal history of another person;
514 (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
515 (II) the applicant has a reasonable good faith belief at the time of application that there
516 was no criminal history to be disclosed; or
517 (C) the division fails to follow the prescribed procedure for the revocation.
518 (viii) If a license is revoked or a revocation under this Subsection (1)(e) is upheld after
519 a hearing, the individual may not apply for a new license until at least 12 months after the day
520 on which the license is revoked.
521 (2) (a) (i) A license expires if it is not renewed on or before its expiration date.

522 (ii) As a condition of renewal, an active licensee shall demonstrate competence by
523 completing 18 hours of continuing education within a two-year renewal period subject to rules
524 made by the commission, with the concurrence of the division.
525 (iii) In making a rule described in Subsection (2)(c)(ii), the division and commission
526 shall consider:
527 (A) evaluating continuing education on the basis of competency, rather than course
528 time;
529 (B) allowing completion of courses in a significant variety of topic areas that the
530 division and commission determine are valuable in assisting an individual licensed under this
531 chapter to increase the individual's competency; and
532 (C) allowing completion of courses that will increase a licensee's professional
533 competency in the area of practice of the licensee.
534 (iv) The division may award credit to a licensee for a continuing education requirement
535 of this Subsection (2)(a) for a reasonable period of time upon a finding of reasonable cause,
536 including:
537 (A) military service; or
538 (B) if an individual is elected or appointed to government service, the individual's
539 government service during which the individual spends a substantial time addressing real estate
540 issues subject to conditions established by rule made in accordance with Title 63G, Chapter 3,
541 Utah Administrative Rulemaking Act.
542 (b) For a period of 30 days after [the expiration date of] the day on which a license
543 expires, the license may be reinstated [upon]:
544 (i) if the applicant's license was inactive on the day on which the applicant's license
545 expired, upon payment of a renewal fee and a late fee determined by the commission with the
546 concurrence of the division under Section 63J-1-504 ; or
547 (ii) if the applicant's license was active on the day on which the applicant's license
548 expired, upon [(i)] payment of a renewal fee and a late fee determined by the commission with
549 the concurrence of the division under Section 63J-1-504 [;], and [(ii)] providing proof
550 acceptable to the division and the commission of the licensee having:
551 (A) completed the hours of education required by Subsection (2)(a); or
552 (B) demonstrated competence as required under Subsection (2)(a).

553 (c) After the 30-day period described in Subsection (2)(b), and until six months after
554 the [expiration date] day on which an active or inactive license expires, the license may be
555 reinstated by:
556 (i) paying a renewal fee and a late fee determined by the commission with the
557 concurrence of the division under Section 63J-1-504 ;
558 (ii) providing to the division proof of satisfactory completion of six hours of continuing
559 education:
560 (A) in addition to the requirements for a timely renewal; and
561 (B) on a subject determined by the commission by rule made in accordance with Title
562 63G, Chapter 3, Utah Administrative Rulemaking Act; and
563 (iii) providing proof acceptable to the division and the commission of the licensee
564 having:
565 (A) completed the hours of education required under Subsection (2)(a); or
566 (B) demonstrated competence as required under Subsection (2)(a).
567 (d) After the six-month period described in Subsection (2)(c), and until one year after
568 the [expiration date] day on which an active or inactive license expires, the license may be
569 reinstated by:
570 (i) paying a renewal fee and a late fee determined by the commission with the
571 concurrence of the division under Section 63J-1-504 ;
572 (ii) providing to the division proof of satisfactory completion of 24 hours of continuing
573 education:
574 (A) in addition to the requirements for a timely renewal; and
575 (B) on a subject determined by the commission by rule made in accordance with Title
576 63G, Chapter 3, Utah Administrative Rulemaking Act; and
577 (iii) providing proof acceptable to the division and the commission of the licensee
578 having:
579 (A) completed the hours of education required by Subsection (2)(a); or
580 (B) demonstrated competence as required under Subsection (2)(a).
581 (e) The division shall relicense a person who does not renew that person's license
582 within one year as prescribed for an original application.
583 (f) Notwithstanding Subsection (2)(a), the division may extend the term of a license

584 that would expire under Subsection (2)(a) except for the extension if:
585 (i) (A) the person complies with the requirements of this section to renew the license;
586 and
587 (B) the renewal application remains pending at the time of the extension; or
588 (ii) at the time of the extension, there is pending a disciplinary action under this
589 chapter.
590 (3) (a) As a condition for the activation of an inactive license that was in an inactive
591 status at the time of the licensee's most recent renewal, the licensee shall supply the division
592 with proof of:
593 (i) successful completion of the respective sales agent or principal broker licensing
594 examination within six months before applying to activate the license; or
595 (ii) the successful completion of the hours of continuing education that the licensee
596 would have been required to complete under Subsection (2)(a) if the license had been on active
597 status at the time of the licensee's most recent renewal.
598 (b) The commission may, in accordance with Title 63G, Chapter 3, Utah
599 Administrative Rulemaking Act, establish by rule:
600 (i) the nature or type of continuing education required for reactivation of a license; and
601 (ii) how long before reactivation the continuing education must be completed.
602 Section 6. Section 61-2f-205 is amended to read:
603 61-2f-205. Form of license -- Display of license.
604 (1) The division shall issue to a licensee a wall license that contains:
605 (a) the name and address of the licensee;
606 (b) the seal of the state; and
607 (c) any other matter prescribed by the division.
608 (2) The division shall send, by mail or email, the license described in Subsection (1) to
609 the licensee at the mailing address or email address furnished by the licensee.
610 (3) A principal broker shall keep the license of the principal broker and the license of
611 any associate broker or sales agent affiliated with the principal broker in the office in which the
612 licensee works to be made available on request.
613 Section 7. Section 61-2f-208 is enacted to read:
614 61-2f-208. Surrender of license.

615 (1) The division may, by written agreement, accept the voluntary surrender of a license
616 issued under this chapter.
617 (2) Tender and acceptance of a voluntary surrender of a license under Subsection (1):
618 (a) does not prevent the division from pursuing additional action, including
619 disciplinary action, that relates to the surrendered license and is authorized by this chapter or by
620 rules made under this chapter; and
621 (b) terminates all rights and privileges associated with the license.
622 (3) A person may restore the rights and privileges described in Subsection (2)(b) only if
623 the person reapplies for, and is granted, licensure in accordance with the requirements
624 described in this chapter.
625 (4) Any documentation relating to the tender and acceptance of a voluntary surrender is
626 a public record.
627 Section 8. Section 61-2f-308 is amended to read:
628 61-2f-308. Brokerage agreements.
629 (1) As used in this section:
630 (a) "Brokerage agreement" means a written agreement between a client and a principal
631 broker:
632 (i) (A) to list for sale, lease, or exchange, real estate, an option on real estate, or an
633 improvement on real estate; or
634 (B) for representation in the purchase, lease, or exchange of real estate, an option on
635 real estate, or an improvement on real estate; and
636 (ii) that gives the principal broker the expectation of receiving valuable consideration
637 in exchange for the principal broker's services.
638 [(a)] (b) "Client" means a person who makes an exclusive brokerage agreement with a
639 principal broker under Subsection (1)[(c)](d).
640 [(b)] (c) "Closed" means that:
641 (i) the documents required to be executed under the contract are executed;
642 (ii) the money required to be paid by either party under the contract is paid in the form
643 of collected or cleared funds;
644 (iii) the proceeds of any new loan are delivered by the lender to the seller; and
645 (iv) the applicable documents are recorded in the office of the county recorder for the

646 county in which the real estate is located.
647 [(c)] (d) "Exclusive brokerage agreement" means a [written agreement between a client
648 and a principal broker: (i) (A) to list for sale, lease, or exchange: (I) real estate; (II) an option
649 on real estate; or (III) an improvement on real estate; or (B) for representation in the purchase,
650 lease, or exchange of: (I) real estate; (II) an option on real estate; or (III) an improvement on
651 real estate; (ii)] brokerage agreement that gives the principal broker the sole right to act as the
652 agent or representative of the client for the purchase, sale, lease, or exchange of[:] real estate,
653 an option on real estate, or an improvement on real estate.
654 [(A) real estate;]
655 [(B) an option on real estate; or]
656 [(C) an improvement on real estate; and]
657 [(iii) that gives the principal broker the expectation of receiving valuable consideration
658 in exchange for the principal broker's services.]
659 (2) (a) Except as provided in Subsection (2)(b), a principal broker subject to an
660 exclusive brokerage agreement shall:
661 (i) accept delivery of and present to the client offers and counteroffers to buy, lease, or
662 exchange the client's real estate;
663 (ii) assist the client in developing, communicating, and presenting offers, counteroffers,
664 and notices; and
665 (iii) answer any question the client has concerning:
666 (A) an offer;
667 (B) a counteroffer;
668 (C) a notice; and
669 (D) a contingency.
670 (b) A principal broker subject to an exclusive brokerage agreement need not comply
671 with Subsection (2)(a) after:
672 (i) (A) an agreement for the sale, lease, or exchange of the real estate, option on real
673 estate, or improvement on real estate is signed;
674 (B) the contingencies related to the sale, lease, or exchange are satisfied or waived; and
675 (C) the sale, lease, or exchange is closed; or
676 (ii) the exclusive brokerage agreement expires or terminates.

677 (3) A principal broker who violates this section is subject to Sections 61-2f-404 and
678 61-2f-405 .
679 (4) (a) Subject to Subsection (4)(b), a principal broker who represents a buyer may
680 directly contact a seller who is subject to a brokerage agreement or an exclusive brokerage
681 agreement if:
682 (i) the seller's principal broker gives the buyer's principal broker written authorization;
683 or
684 (ii) subject to Subsection (4)(c), the seller gives the buyer's principal broker written
685 authorization.
686 (b) If a buyer's principal broker obtains a written authorization described in Subsection
687 (4)(a), the buyer's principal broker may contact the seller directly to:
688 (i) discuss items related to a real estate transaction between the buyer and the seller;
689 (ii) provide the seller with blank state-approved forms; and
690 (iii) negotiate the terms of a real estate transaction between the buyer and the seller.
691 (c) A buyer's principal broker may not solicit from a seller a written authorization
692 described in Subsection (4)(a)(ii).
693 (5) A principal broker who, in accordance with Subsection (4), engages in the conduct
694 described in Subsection (4)(b) is not, by that conduct, representing that the principal broker is
695 acting on behalf of both the buyer and the seller.
696 Section 9. Section 61-2f-402 is amended to read:
697 61-2f-402. Investigations.
698 (1) The division may make an investigation within or outside of this state as the
699 division considers necessary to determine whether a person has violated, is violating, or is
700 about to violate this chapter or any rule or order under this chapter.
701 (2) To aid in the enforcement of this chapter or in the prescribing of rules and forms
702 under this chapter, the division may require or permit a person to file a statement in writing,
703 under oath or otherwise as to the facts and circumstances concerning the matter to be
704 investigated.
705 (3) For the purpose of the investigation described in Subsection (1), the division or an
706 employee designated by the division may:
707 (a) administer an oath or affirmation;

708 (b) subpoena witnesses and evidence;
709 (c) take evidence;
710 (d) require the production of a book, paper, contract, record, other document, or
711 information relevant to the investigation; and
712 (e) serve a subpoena by certified mail.
713 (4) (a) If a person is found to have violated this chapter or a rule made under this
714 chapter, the person shall pay the costs incurred by the division to copy a book, paper, contract,
715 document, or record required under this chapter, including the costs incurred to copy an
716 electronic book, paper, contract, document, or record in a universally readable format.
717 (b) If a person fails to pay the costs described in Subsection (4)(a) when due, the
718 person's license, certification, or registration is automatically suspended:
719 (i) beginning the day on which the payment of costs is due; and
720 (ii) ending the day on which the costs are paid.
721 (5) (a) Except as provided in Subsection (5)(b), the division shall commence a
722 disciplinary action under this chapter no later than the earlier of the following:
723 (i) four years after the day on which the violation is reported to the division; or
724 (ii) 10 years after the day on which the violation occurred.
725 (b) The division may commence a disciplinary action under this chapter after the time
726 period described in Subsection (5)(a) expires if:
727 (i) (A) the disciplinary action is in response to a civil or criminal judgment or
728 settlement; and
729 (B) the division initiates the disciplinary action no later than one year after the day on
730 which the judgment is issued or the settlement is final; or
731 (ii) the division and the person subject to a disciplinary action enter into a written
732 stipulation to extend the time period described in Subsection (5)(a).
733 Section 10. Section 61-2f-406 is amended to read:
734 61-2f-406. Grounds for revocation of principal broker's license.
735 (1) [(a)] An unlawful act or violation of this chapter committed by a person listed in
736 Subsection [(1)(b)] (2) is cause for:
737 [(i)] (a) the revocation, suspension, or probation of a principal broker's license; or
738 [(ii)] (b) the imposition of a fine against the principal broker in an amount not to

739 exceed $5,000 per violation.
740 [(b)] (2) Subsection (1)[(a)] applies to an act or violation by any of the following:
741 [(i)] (a) a sales agent or associate broker employed by a principal broker;
742 [(ii)] (b) a sales agent or associate broker engaged as an independent contractor by or
743 on behalf of a principal broker; or
744 [(iii)] (c) an employee, officer, or member of a principal broker.
745 [(2) (a) The revocation or suspension of a principal broker license automatically
746 inactivates an associate broker or sales agent license granted to an individual by reason of that
747 individual's affiliation with the principal broker whose license is revoked or suspended,
748 pending a change of principal broker affiliation.]
749 [(b) A principal broker shall, before the effective date of a suspension or revocation of
750 the principal broker's license, notify in writing every licensee affiliated with the principal
751 broker of the revocation or suspension of the principal broker license.]
752 Section 11. Section 61-2f-410 is enacted to read:
753 61-2f-410. Effect of expiration, revocation, or suspension -- Notice required.
754 (1) (a) The revocation or suspension of a principal broker license automatically
755 inactivates an associate broker license or a sales agent license that was issued based upon the
756 licensee's affiliation with the principal broker whose license is revoked or suspended, pending a
757 change of principal broker affiliation.
758 (b) If an individual's associate broker license or sales agent license becomes inactive
759 under Subsection (1)(a), the individual may affiliate with another principal broker licensed
760 under this chapter.
761 (2) Before the day on which a suspension or revocation of a principal broker's license is
762 effective, the principal broker shall notify, in writing, each licensee affiliated with the principal
763 broker:
764 (a) that the principal broker's license will be revoked or suspended;
765 (b) of the day on which the revocation or suspension is effective; and
766 (c) that the licensee's license will be inactive beginning on the day on which the
767 principal broker's license is revoked or suspended.
768 (3) If a principal broker fails to timely renew the principal broker's license in
769 accordance with this chapter, on the day on which the principal broker's license expires, the

770 principal broker shall notify, in writing, each licensee affiliated with the principal broker:
771 (a) that the principal broker's license is expired;
772 (b) of the day on which the principal broker's license expired; and
773 (c) that the licensee's license is inactive beginning on the day on which the principal
774 broker's license expired.
775 Section 12. Section 61-2g-102 is amended to read:
776 61-2g-102. Definitions.
777 (1) As used in this chapter:
778 (a) (i) "Appraisal" means an analysis, opinion, or conclusion relating to the nature,
779 quality, value, or utility of a specified interest in, or aspect of, identified real estate or identified
780 real property.
781 (ii) An appraisal is classified by the nature of the assignment as a valuation appraisal,
782 an analysis assignment, or a review assignment in accordance with the following definitions:
783 (A) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that
784 relates to the nature, quality, or utility of identified real estate or identified real property.
785 (B) "Review assignment" means an unbiased analysis, opinion, or conclusion that
786 forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis
787 assignment.
788 (C) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
789 estimates the value of an identified parcel of real estate or identified real property at a particular
790 point in time.
791 (b) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as
792 an Illinois not-for-profit corporation on November 30, 1987.
793 (c) (i) "Appraisal report" means a communication, written or oral, of an appraisal.
794 (ii) An appraisal report is classified by the nature of the assignment as a valuation
795 report, analysis report, or review report in accordance with the definitions provided in
796 Subsection (1)(a)(ii).
797 (iii) The testimony of a person relating to the person's analyses, conclusions, or
798 opinions concerning identified real estate or identified real property is considered to be an oral
799 appraisal report.
800 (d) "Appraisal Qualification Board" means the Appraisal Qualification Board of the

801 Appraisal Foundation.
802 (e) "Board" means the Real Estate Appraiser Licensing and Certification Board that is
803 established in Section 61-2g-204 .
804 (f) "Certified appraisal report" means a written or oral appraisal report that is certified
805 by a state-certified general appraiser or state-certified residential appraiser.
806 (g) "Concurrence" means that the entities that are given a concurring role jointly agree
807 to an action.
808 (h) (i) (A) "Consultation service" means an engagement to provide a real estate
809 valuation service analysis, opinion, conclusion, or other service that does not fall within the
810 definition of appraisal.
811 (B) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
812 review assignment.
813 (ii) Regardless of the intention of the client or employer, if a person prepares an
814 unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
815 be an appraisal and not a consultation service.
816 (i) "Contingent fee" means a fee or other form of compensation, payment of which is
817 dependent on or conditioned by:
818 (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
819 performing the analysis, opinion, or conclusion; or
820 (ii) achieving a result specified by the person requesting the analysis, opinion, or
821 conclusion.
822 (j) "Credential" means a state-issued registration, license, or certification that allows an
823 individual to perform any act or service that requires licensure or certification under this
824 chapter.
825 [(j)] (k) "Division" means the Division of Real Estate of the Department of Commerce.
826 (l) "Executive director" means the executive director of the Department of Commerce.
827 [(k)] (m) "Federally related transaction" means a real estate related transaction that is
828 required by federal law or by federal regulation to be supported by an appraisal prepared by:
829 (i) a state-licensed appraiser; or
830 (ii) a state-certified appraiser.
831 [(l)] (n) "Real estate" means an identified parcel or tract of land including

832 improvements if any.
833 [(m)] (o) "Real estate appraisal activity" means the act or process of making an
834 appraisal of real estate or real property and preparing an appraisal report.
835 [(n)] (p) "Real estate related transaction" means:
836 (i) the sale, lease, purchase, investment in, or exchange of real property or an interest in
837 real property, or the financing of such a transaction;
838 (ii) the refinancing of real property or an interest in real property; or
839 (iii) the use of real property or an interest in real property as security for a loan or
840 investment, including mortgage-backed securities.
841 [(o)] (q) "Real property" means one or more defined interests, benefits, or rights
842 inherent in the ownership of real estate.
843 [(p)] (r) "State-certified general appraiser" means a person who holds a current, valid
844 certification as a state-certified general appraiser issued under this chapter.
845 [(q)] (s) "State-certified residential appraiser" means a person who holds a current,
846 valid certification as a state-certified residential real estate appraiser issued under this chapter.
847 [(r)] (t) "State-licensed appraiser" means a person who holds a current, valid license as
848 a state-licensed appraiser issued under this chapter.
849 [(s)] (u) "Trainee" means an individual who:
850 (i) does not hold an appraiser license or appraiser certification issued under this
851 chapter;
852 (ii) works under the direct supervision of a state-certified appraiser to earn experience
853 for licensure; and
854 (iii) is registered as a trainee under this chapter.
855 [(t)] (v) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
856 conclusion relating to the nature, quality, value, or utility of identified real estate or identified
857 real property that is prepared by a person who is employed or retained to act, or would be
858 perceived by third parties or the public as acting, as a disinterested third-party in rendering the
859 analysis, opinion, or conclusion.
860 (2) (a) If a term not defined in this section is defined by rule, the term shall have the
861 meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
862 Utah Administrative Rulemaking Act.

863 (b) If a term not defined in this section is not defined by rule, the term shall have the
864 meaning commonly accepted in the business community.
865 Section 13. Section 61-2g-205 is amended to read:
866 61-2g-205. Duties of board.
867 (1) (a) The board shall provide technical assistance to the division relating to real estate
868 appraisal standards and real estate appraiser qualifications.
869 (b) The board has the powers and duties listed in this section.
870 (2) The board shall:
871 (a) determine the experience and education requirements appropriate for a person
872 licensed under this chapter;
873 (b) determine the experience and education requirements appropriate for a person
874 certified under this chapter:
875 (i) in compliance with the minimum requirements of Financial Institutions Reform,
876 Recovery, and Enforcement Act of 1989; and
877 (ii) consistent with the intent of this chapter;
878 (c) determine the appraisal related acts that may be performed by:
879 (i) a trainee on the basis of the trainee's education and experience;
880 (ii) clerical staff; and
881 (iii) a person who:
882 (A) does not hold a license or certification; and
883 (B) assists an appraiser licensed or certified under this chapter in providing appraisal
884 services or consultation services;
885 (d) determine the procedures for a trainee to register and to renew a registration with
886 the division; and
887 (e) develop one or more programs to upgrade and improve the experience, education,
888 and examinations as required under this chapter.
889 (3) [(a)] The experience and education requirements [established] determined by the
890 board for a person licensed or certified under this chapter shall [be] meet or exceed the
891 minimum criteria established by the Appraisal Qualification Board[, unless, after notice and a
892 public hearing held in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
893 Act, the board finds that the minimum criteria are not appropriate for a state-licensed appraiser

894 or a state-certified appraiser in this state].
895 [(b) If under Subsection (3)(a) the board makes a finding that the minimum criteria are
896 not appropriate, the board shall recommend appropriate criteria to the Legislature.]
897 (4) The board shall:
898 (a) determine the continuing education requirements appropriate for the renewal of a
899 license, certification, or registration issued under this chapter[,] [except that the continuing
900 education requirements established by the board shall at least] that meet or exceed the
901 minimum criteria established by the Appraisal Qualification Board;
902 (b) develop one or more programs to upgrade and improve continuing education; and
903 (c) recommend to the division one or more available continuing education courses that
904 meet the requirements of this chapter.
905 (5) (a) The board shall consider the proper interpretation or explanation of the Uniform
906 Standards of Professional Appraisal Practice as required by Section 61-2g-403 when:
907 (i) an interpretation or explanation is necessary in the enforcement of this chapter; and
908 (ii) the Appraisal Standards Board of the Appraisal Foundation has not issued an
909 interpretation or explanation.
910 (b) If the conditions of Subsection (5)(a) are met, the board shall recommend to the
911 division the appropriate interpretation or explanation that the division should adopt as a rule
912 under this chapter.
913 (c) The board may by rule made in accordance with Title 63G, Chapter 3, Utah
914 Administrative Rulemaking Act, and Section 61-2g-403 , and with the concurrence of the
915 division, provide for an exemption from a provision of the Uniform Standards of Professional
916 Appraisal Practice for an activity engaged in on behalf of a governmental entity.
917 (6) (a) The board shall conduct an administrative hearing, not delegated by the board to
918 an administrative law judge, in connection with a disciplinary proceeding under Section
919 61-2g-504 concerning:
920 (i) a person required to be licensed, certified, or registered under this chapter; and
921 (ii) the person's failure to comply with this chapter and the Uniform Standards of
922 Professional Appraisal Practice as adopted under Section 61-2g-403 .
923 (b) The board, with the concurrence of the division, shall issue in an administrative
924 hearing a decision that contains findings of fact and conclusions of law.

925 (c) When a determination is made that a person required to be licensed, certified, or
926 registered under this chapter has violated this chapter, the division shall implement disciplinary
927 action determined through concurrence of the board and the division.
928 (7) A member of the board is immune from a civil action or criminal prosecution for a
929 disciplinary proceeding concerning a person required to be registered, licensed, certified, or
930 approved as an expert under this chapter if the action is taken without malicious intent and in
931 the reasonable belief that the action taken was taken pursuant to the powers and duties vested
932 in a member of the board under this chapter.
933 (8) (a) The board shall require and pass upon proof necessary to determine the honesty,
934 competency, integrity, [and] truthfulness, and general fitness to command the confidence of the
935 community of an applicant for:
936 [(a)] (i) original licensure, certification, or registration; and
937 [(b)] (ii) renewal licensure, certification, or registration.
938 (b) The board may delegate to the division the authority to:
939 (i) review a class or category of applications for an original or renewed license,
940 certification, or registration;
941 (ii) determine whether an applicant meets the qualifications for licensure, certification,
942 or registration;
943 (iii) conduct any necessary hearing on an application for an original or renewed license,
944 certification, or registration; and
945 (iv) approve or deny an application for an original or renewed license, certification, or
946 registration.
947 (c) Except as provided in Subsections (8)(d) and (e), and in accordance with Title 63G,
948 Chapter 4, Administrative Procedures Act, an applicant who is denied licensure, certification,
949 or registration under this chapter may submit a request for agency review to the executive
950 director of the division within 30 days after the day on which the board issues the order
951 denying the applicant's application.
952 (d) If the board delegates to the division the authority to approve or deny an application
953 without the concurrence of the board under Subsection (8)(b), and the division denies an
954 application for licensure, certification, or registration, the applicant may, in accordance with
955 Title 63G, Chapter 4, Administrative Procedures Act, petition the board for a de novo review

956 of the application within 30 days after the day on which the division issues the order denying
957 the applicant's application.
958 (e) If the board denies an applicant's application for licensure, certification, or
959 registration after a de novo review under Subsection (8)(c), the applicant may, in accordance
960 with Title 63G, Chapter 4, Administrative Procedures Act, petition the executive director for
961 review of the board's denial within 30 days after the day on which the board issues the order
962 denying the applicant's application.
963 Section 14. Section 61-2g-302 is amended to read:
964 61-2g-302. Registration as trainee.
965 (1) [(a)] An individual [is required to] shall register with the division as a trainee
966 before the individual acts in the capacity of a trainee [earning] or earns experience for
967 licensure.
968 [(b)] (2) Subject to Subsection (2), the board, with the concurrence of the division,
969 shall [adopt] make rules in accordance with Title 63G, Chapter 3, Utah Administrative
970 Rulemaking Act, for:
971 [(i)] (a) the trainee registration required [by this] under Subsection (1); and
972 [(ii)] (b) renewal of [the] a trainee registration [required by this Subsection (1)].
973 [(2) (a) An individual applying to register as a trainee under this chapter shall:]
974 [(i) submit a fingerprint card in a form acceptable to the division at the time of
975 applying for registration; and]
976 [(ii) consent to a criminal background check by:]
977 [(A) the Utah Bureau of Criminal Identification; and]
978 [(B) the Federal Bureau of Investigation.]
979 [(b) The division shall request the Department of Public Safety to complete a Federal
980 Bureau of Investigation criminal background check for an applicant through a national criminal
981 history system.]
982 [(c) The applicant shall pay the cost of:]
983 [(i) the fingerprinting required by this section; and]
984 [(ii) the criminal background check required by this section.]
985 [(d) (i) A registration as a trainee under this chapter is conditional pending completion
986 of the criminal background check required by this Subsection (2).]

987 [(ii) A registration is immediately and automatically revoked if a criminal background
988 check discloses that the applicant fails to accurately disclose a criminal history involving:]
989 [(A) the appraisal industry; or]
990 [(B) a felony conviction on the basis of an allegation of fraud, misrepresentation, or
991 deceit.]
992 [(iii) If a criminal background check discloses that an applicant fails to accurately
993 disclose a criminal history other than one described in Subsection (2)(d)(ii), the division shall
994 review the application, and in accordance with rules made by the division pursuant to Title
995 63G, Chapter 3, Utah Administrative Rulemaking Act, may:]
996 [(A) place one or more conditions on a registration;]
997 [(B) place one or more restrictions on a registration;]
998 [(C) revoke a registration; or]
999 [(D) refer the application to the board for a decision.]
1000 [(iv) An individual whose conditional registration is automatically revoked under
1001 Subsection (2)(d)(ii) or whose registration is conditioned, restricted, or revoked under
1002 Subsection (2)(d)(iii) may appeal the action in a hearing conducted by the board:]
1003 [(A) after the action is taken; and]
1004 [(B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.]
1005 [(v) The board may delegate to the division or an administrative law judge the
1006 authority to conduct a hearing described in Subsection (2)(d)(iv).]
1007 [(vi) Relief from an automatic revocation under Subsection (2)(d)(ii) may be granted
1008 only if:]
1009 [(A) the criminal history upon which the division bases the revocation did not occur or
1010 is the criminal history of another person;]
1011 [(B) the revocation is based on a failure to accurately disclose a criminal history, and
1012 the applicant has a reasonable good faith belief at the time of application that there was no
1013 criminal history to be disclosed; or]
1014 [(C) the division fails to follow the prescribed procedure for the revocation.]
1015 [(e) If a registration is revoked or a revocation is upheld after a hearing described in
1016 Subsection (2)(d)(iv), the individual may not apply for a new registration for a period of 12
1017 months after the day on which the registration is revoked.]

1018 [(f) The board may delegate to the division the authority to make a decision on whether
1019 relief from a revocation should be granted.]
1020 [(g) Money paid by an applicant for the cost of the criminal background check is
1021 nonlapsing.]
1022 Section 15. Section 61-2g-304.5 is enacted to read:
1023 61-2g-304.5. Background checks.
1024 (1) (a) An individual applying for licensure, certification, or registration under this
1025 chapter shall:
1026 (i) submit, with the individual's application, a fingerprint card in a form acceptable to
1027 the division; and
1028 (ii) consent to a criminal background check by:
1029 (A) the Utah Bureau of Criminal Identification; and
1030 (B) the Federal Bureau of Investigation.
1031 (b) The division shall request that the Department of Public Safety complete a Federal
1032 Bureau of Investigation criminal background check for each applicant through the national
1033 criminal history system or any system that succeeds the national criminal history system.
1034 (c) The applicant shall pay the cost of:
1035 (i) the fingerprint card described in Subsection (1)(a)(i); and
1036 (ii) a criminal background check.
1037 (d) (i) A license, certification, or registration issued under this chapter is conditional
1038 pending completion of a criminal background check.
1039 (ii) A license, certification, or registration issued under this chapter is immediately and
1040 automatically revoked if a criminal background check reveals that the applicant failed to
1041 accurately disclose a criminal history that:
1042 (A) relates to the appraisal industry; or
1043 (B) includes a felony conviction based on fraud, misrepresentation, or deceit.
1044 (iii) If a criminal background check reveals that an applicant failed to accurately
1045 disclose a criminal history other than a type described in Subsection (2)(d)(ii), the division
1046 shall review the application and, in accordance with rules made by the division pursuant to
1047 Title 63G, Chapter 3, Utah Administrative Rulemaking Act, may:
1048 (A) place one or more conditions on the license, certification, or registration;

1049 (B) place one or more restrictions on the license, certification, or registration;
1050 (C) revoke the license, certification, or registration; or
1051 (D) refer the application to the board for a decision.
1052 (iv) An individual whose conditional license, certification, or registration is
1053 automatically revoked under Subsection (1)(d)(ii) or whose license, certification, or registration
1054 is conditioned, restricted, or revoked under Subsection (1)(d)(iii) may appeal the action in a
1055 hearing conducted by the board in accordance with Title 63G, Chapter 4, Administrative
1056 Procedures Act.
1057 (v) The board may delegate to the division or an administrative law judge the authority
1058 to conduct a hearing described in Subsection (1)(d)(iv).
1059 (vi) The board, the division, or an administrative law judge may reverse an automatic
1060 revocation under Subsection (1)(d)(ii) only if:
1061 (A) the criminal history upon which the revocation was based did not occur or is the
1062 criminal history of another individual;
1063 (B) at the time the applicant disclosed the applicant's criminal history, the applicant
1064 had a reasonable good faith belief that there was no criminal history to be disclosed; or
1065 (C) the division failed to follow the prescribed procedure for the revocation.
1066 (e) (i) If an individual's conditional license, certification, or registration is revoked
1067 under Subsection (1)(d) and the individual does not appeal the revocation in accordance with
1068 Subsection (1)(d)(iv), the individual may not apply for a new certification, license, or
1069 registration under this chapter for a period of 12 months after the day on which the conditional
1070 license, certification, or registration is revoked.
1071 (ii) If an individual's conditional license, certification, or registration is revoked, the
1072 individual appeals that revocation in accordance with Subsection (1)(d)(iv), and the revocation
1073 is upheld, the individual may not apply for a new license, certification, or registration under
1074 this chapter for a period of 12 months after the day on which the decision from the appeal is
1075 issued.
1076 (f) The board may delegate to the division the authority to make a decision on whether
1077 relief from a revocation should be granted.
1078 (g) Money an applicant pays for the cost of the criminal background check is
1079 nonlapsing.

1080 Section 16. Section 61-2g-310 is amended to read:
1081 61-2g-310. Reciprocal licensure.
1082 (1) An applicant for licensure or certification in this state who is [licensed or certified]
1083 credentialed under the laws of any other state, territory, or district may obtain a [license or
1084 certification] reciprocal credential in this state [upon the terms and conditions determined by
1085 the division and the board, if, in the determination of the division and the board] if:
1086 [(1) the state, territory, or the District of Columbia is considered to have substantially
1087 equivalent licensing laws for real estate appraisers;]
1088 [(2) the laws of that state, territory, or the District of Columbia accord substantially
1089 equal reciprocal rights to a person licensed or certified and in good standing in this state; and]
1090 [(3) no formal charges alleging violation of state appraisal licensing or certification
1091 laws have been filed against the applicant by the applicant's state of domicile.]
1092 (a) the individual holds a current, valid credential issued by a state that, on the day on
1093 which the individual submits an application, is in compliance with Title XI of the Financial
1094 Institutions Reform, Recovery and Enforcement Act of 1989, as determined by the Appraisal
1095 Subcommittee of the Federal Financial Institutions Examination Council; and
1096 (b) the credentialing requirements of that state, that are in force on the day on which
1097 the individual submits an application, meet or exceed the credentialing requirements described
1098 in this chapter and the rules made under this chapter.
1099 (2) An individual who holds a reciprocal credential described in Subsection (1) shall
1100 comply with all statutes and rules that govern the appraisal industry in this state, including
1101 requirements relating to:
1102 (a) the payment of fees; and
1103 (b) continuing education.
1104 Section 17. Section 61-2g-311 is amended to read:
1105 61-2g-311. State-licensed appraiser -- Authority and qualifications.
1106 (1) A state-licensed appraiser is authorized to appraise complex and noncomplex 1-4
1107 family residential units in this state having a transaction value permitted under the Financial
1108 Institutions Reform, Recovery, and Enforcement Act of 1989, and related federal regulations.
1109 (2) A state-licensed appraiser is authorized to appraise vacant or unimproved land
1110 having a transaction value permitted under the Financial Institutions Reform, Recovery, and

1111 Enforcement Act of 1989, and related federal regulations that is utilized for 1-4 family
1112 purposes or for which the highest and best use is 1-4 family purposes and subdivisions for
1113 which a development analysis/appraisal is not necessary.
1114 (3) A state-licensed appraiser may not issue a certified appraisal report.
1115 (4) To qualify as a state-licensed appraiser, an applicant must:
1116 (a) be of good moral character;
1117 (b) demonstrate honesty, competency, integrity, [and] truthfulness, and general fitness
1118 to command the confidence of the community;
1119 (c) pass the licensing examination with a satisfactory score as determined by the
1120 Appraisal Qualification Board;
1121 (d) successfully complete [not less than 150 classroom hours in courses of study that
1122 relate to:] the educational requirements established by rule in accordance with Subsection (5);
1123 and
1124 [(i) real estate appraisal;]
1125 [(ii) the Uniform Standards of Professional Appraisal Practice; and]
1126 [(iii) ethical rules to be observed by a real estate appraiser as required by Section
1127 61-2g-403 ; and]
1128 (e) possess [the minimum number of hours of] the experience in real property appraisal
1129 [as] established by rule in accordance with Subsection (5).
1130 [(5) The courses of study under Subsection (4)(d) shall be conducted by:]
1131 [(a) a college or university;]
1132 [(b) a community or junior college;]
1133 [(c) a real estate appraisal or real estate related organization;]
1134 [(d) a state or federal agency or commission;]
1135 [(e) a proprietary school;]
1136 [(f) a provider approved by a state certification and licensing agency; or]
1137 [(g) the Appraisal Foundation or its boards.]
1138 (5) (a) The division shall, with the concurrence of the board, make rules in accordance
1139 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that establish:
1140 (i) the educational requirements described in Subsection (4)(d); and
1141 (ii) the experience in real property appraisal described in Subsection (4)(e).

1142 (b) The educational and experience requirements established under Subsection (5)(a)
1143 shall meet or exceed the educational requirements and the hourly experience requirements
1144 adopted by the Appraisal Qualification Board.
1145 Section 18. Section 61-2g-312 is amended to read:
1146 61-2g-312. State-certified appraisers -- Authority.
1147 (1) A state-certified residential appraiser:
1148 (a) is authorized to appraise the types of real estate [which] that a state-licensed
1149 appraiser is authorized to appraise[.];
1150 [(2) A state-certified residential appraiser is also]
1151 (b) is authorized to appraise 1-4 unit residential real estate without regard to transaction
1152 value or complexity[.]; and
1153 [(3) A state-certified residential appraiser]
1154 (c) is not authorized to appraise subdivisions for which a development
1155 analysis/appraisal is necessary.
1156 [(4)] (2) A state-certified general appraiser is authorized to appraise all types of real
1157 estate and real property.
1158 (3) A state-certified appraiser who satisfies all requirements described in this chapter
1159 and in rule made under this chapter may supervise trainees as allowed by rule.
1160 Section 19. Section 61-2g-313 is amended to read:
1161 61-2g-313. State-certified residential appraiser -- Authority and qualifications.
1162 (1) An applicant for certification as a residential appraiser shall provide to the division
1163 evidence of:
1164 (a) the applicant's good moral character, honesty, competency, integrity, [and]
1165 truthfulness, and general fitness to command the confidence of the community;
1166 (b) completion of the certification examination with a satisfactory score as determined
1167 by the Appraisal Qualification Board;
1168 [(c) (i) an associate degree or higher degree from an accredited:]
1169 [(A) college;]
1170 [(B) junior college;]
1171 [(C) community college; or]
1172 [(D) university; or]

1173 [(ii) successfully passing a curriculum determined by rule of collegiate level subject
1174 matter courses from an accredited:]
1175 [(A) college;]
1176 [(B) junior college;]
1177 [(C) community college; or]
1178 [(D) university;]
1179 [(d) satisfactory completion of not less than 200 classroom hours in a curriculum:]
1180 [(i) of specific appraisal education determined by rule made by the board, with the
1181 concurrence of the division; and]
1182 [(ii) that includes a course in the Uniform Standards of Professional Practice or its
1183 equivalent that is approved by the Appraisal Qualification Board;]
1184 (c) completion of the educational requirements established by rule in accordance with
1185 Subsection (3); and
1186 [(e)] (d) [the minimum number of hours of] experience in real property appraisal as
1187 established by rule[; and] in accordance with Subsection (3).
1188 [(f) acquiring the experience required under Subsection (1)(e) within a reasonable
1189 period, as determined by rule, immediately preceding the filing of the application for
1190 certification.]
1191 (2) Upon request by the division, an applicant shall make available to the division for
1192 examination:
1193 (a) a detailed listing of the real estate appraisal reports or file memoranda [for each
1194 year] for which experience is claimed; and
1195 (b) a sample selected by the division of appraisal reports that the applicant has prepared
1196 in the course of the applicant's appraisal practice.
1197 [(3) The classroom hours required by Subsection (1)(d) shall be provided by:]
1198 [(a) a college or university;]
1199 [(b) a community or junior college;]
1200 [(c) a real estate appraisal or real estate related organization;]
1201 [(d) a state or federal agency or commission;]
1202 [(e) a proprietary school;]
1203 [(f) a provider approved by a state certification and licensing agency; or]

1204 [(g) the Appraisal Foundation or its boards.]
1205 (3) (a) The division shall, with the concurrence of the board, make rules in accordance
1206 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that establish:
1207 (i) the educational requirements described in Subsection (1)(c); and
1208 (ii) the experience in real property appraisal described in Subsection (1)(d).
1209 (b) The educational and experience requirements established under Subsection (3)(a)
1210 shall meet or exceed the educational requirements and the hourly experience requirements
1211 adopted by the Appraisal Qualification Board.
1212 Section 20. Section 61-2g-314 is amended to read:
1213 61-2g-314. State-certified general appraiser -- Application -- Qualifications.
1214 (1) An applicant for certification as a general appraiser shall provide to the division
1215 evidence of:
1216 (a) the applicant's good moral character, honesty, competency, integrity, [and]
1217 truthfulness, and general fitness to command the confidence of the community;
1218 (b) completion of the certification examination with a satisfactory score as determined
1219 by the Appraisal Qualification Board;
1220 [(c) (i) a bachelors degree or higher degree from an accredited college or university; or]
1221 [(ii) successfully passing a curriculum determined by rule of collegiate level subject
1222 matter courses from an accredited:]
1223 [(A) college;]
1224 [(B) junior college;]
1225 [(C) community college; or]
1226 [(D) university;]
1227 [(d) satisfactory completion of not less than 300 classroom hours in a curriculum:]
1228 [(i) of specific appraisal education determined by rule; and]
1229 [(ii) that includes a course in the Uniform Standards of Professional Practice or its
1230 equivalent that has been approved by the Appraisal Qualification Board;]
1231 (c) completion of the educational requirements established by rule in accordance with
1232 Subsection (3); and
1233 [(e)] (d) [the minimum number of hours of] experience in real property appraisal as
1234 established by rule[; and] in accordance with Subsection (3).

1235 [(f) acquiring the experience required under Subsection (1)(e) within a reasonable
1236 period, as determined by rule, immediately preceding the filing of the application for
1237 certification.]
1238 (2) Upon request by the division, an applicant shall make available to the division for
1239 examination:
1240 (a) a detailed listing of the real estate appraisal reports or file memoranda [for each
1241 year] for which experience is claimed; and
1242 (b) a sample selected by the division of appraisal reports that the applicant has prepared
1243 in the course of the applicant's appraisal practice.
1244 [(3) The classroom hours required by Subsection (1)(d) shall be provided by:]
1245 [(a) a college or university;]
1246 [(b) a community or junior college;]
1247 [(c) a real estate appraisal or real estate related organization;]
1248 [(d) a state or federal agency or commission;]
1249 [(e) a proprietary school;]
1250 [(f) a provider approved by a state certification and licensing agency; or]
1251 [(g) the Appraisal Foundation or its boards.]
1252 (3) (a) The division shall, with the concurrence of the board, make rules in accordance
1253 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that establish:
1254 (i) the educational requirements described in Subsection (1)(c); and
1255 (ii) the experience in real property appraisal described in Subsection (1)(d).
1256 (b) The educational and experience requirements established under Subsection (3)(a)
1257 shall meet or exceed the educational requirements and the hourly experience requirements
1258 adopted by the Appraisal Qualification Board.
1259 Section 21. Section 61-2g-316 is enacted to read:
1260 61-2g-316. Surrender of license.
1261 (1) The division may, by written agreement, accept the voluntary surrender of a license
1262 issued under this chapter.
1263 (2) Tender and acceptance of a voluntary surrender of a license under Subsection (1):
1264 (a) does not prevent the division from pursuing additional action, including
1265 disciplinary action, that relates to the surrendered license and is authorized by this chapter or by

1266 rules made under this chapter; and
1267 (b) terminates all rights and privileges associated with the license.
1268 (3) A person may restore the rights and privileges described in Subsection (2)(b) only if
1269 the person reapplies for, and is granted, licensure in accordance with the requirements
1270 described in this chapter.
1271 (4) Any documentation relating to the tender and acceptance of a voluntary surrender is
1272 a public record.
1273 Section 22. Section 61-2g-501 is amended to read:
1274 61-2g-501. Enforcement -- Investigation -- Orders -- Hearings.
1275 (1) (a) The division may investigate the actions of:
1276 (i) a person registered, licensed, or certified under this chapter;
1277 (ii) an applicant for registration, licensure, or certification;
1278 (iii) an applicant for renewal of registration, licensure, or certification; or
1279 (iv) a person required to be registered, licensed, or certified under this chapter.
1280 (b) The division may initiate an agency action against a person described in Subsection
1281 (1)(a) in accordance with Title 63G, Chapter 4, Administrative Procedures Act, to:
1282 (i) impose disciplinary action;
1283 (ii) deny issuance to an applicant of:
1284 (A) an original registration, license, or certification; or
1285 (B) a renewal of a registration, license, or certification; or
1286 (iii) issue a cease and desist order as provided in Subsection (3).
1287 (2) (a) The division may:
1288 (i) administer an oath or affirmation;
1289 (ii) subpoena a witness or evidence;
1290 (iii) take evidence; and
1291 (iv) require the production of a book, paper, contract, record, document, information,
1292 or evidence relevant to the investigation described in Subsection (1).
1293 (b) The division may serve a subpoena by certified mail.
1294 (c) A failure to respond to a request by the division in an investigation authorized
1295 under this chapter is considered to be a separate violation of this chapter, including:
1296 (i) failing to respond to a subpoena as a witness;

1297 (ii) withholding evidence; or
1298 (iii) failing to produce a book, paper, contract, document, information, or record.
1299 (d) (i) If a person is found to have violated this chapter or a rule made under this
1300 chapter, the person shall pay the costs incurred by the division to copy a book, paper, contract,
1301 document, information, or record required under this chapter, including the costs incurred to
1302 copy an electronic book, paper, contract, document, information, or record in a universally
1303 readable format.
1304 (ii) If a person fails to pay the costs described in Subsection (2)(d)(i) when due, the
1305 person's license, certification, or registration is automatically suspended:
1306 (A) beginning the day on which the payment of costs is due; and
1307 (B) ending the day on which the costs are paid.
1308 (3) (a) The director shall issue and serve upon a person an order directing that person to
1309 cease and desist from an act if:
1310 (i) the director has reason to believe that the person has been engaging, is about to
1311 engage, or is engaging in the act constituting a violation of this chapter; and
1312 (ii) it appears to the director that it would be in the public interest to stop the act.
1313 (b) Within 10 days after receiving the order, the person upon whom the order is served
1314 may request a hearing.
1315 (c) Pending a hearing requested under Subsection (3)(b), a cease and desist order shall
1316 remain in effect.
1317 (d) If a request for hearing is made, the division shall follow the procedures and
1318 requirements of Title 63G, Chapter 4, Administrative Procedures Act.
1319 (4) (a) After a hearing requested under Subsection (3), if the board and division concur
1320 that an act of the person violates this chapter, the board, with the concurrence of the division:
1321 (i) shall issue an order making the cease and desist order permanent; and
1322 (ii) may impose another disciplinary action under Section 61-2g-502 .
1323 (b) The director shall commence an action in the name of the Department of
1324 Commerce and Division of Real Estate, in the district court in the county in which an act
1325 described in Subsection (3) occurs or where the person resides or carries on business, to enjoin
1326 and restrain the person from violating this chapter if:
1327 (i) (A) a hearing is not requested under Subsection (3); and

1328 (B) the person fails to cease the act described in Subsection (3); or
1329 (ii) after discontinuing the act described in Subsection (3), the person again
1330 commences the act.
1331 (5) A remedy or action provided in this section does not limit, interfere with, or prevent
1332 the prosecution of another remedy or action, including a criminal proceeding.
1333 (6) (a) Except as provided in Subsection (6)(b), the division, shall commence a
1334 disciplinary action under this chapter no later than the earlier of the following:
1335 (i) four years after the day on which the violation is reported to the division; or
1336 (ii) 10 years after the day on which the violation occurred.
1337 (b) The division may commence a disciplinary action under this chapter after the time
1338 period described in Subsection (6)(a) expires if:
1339 (i) (A) the disciplinary action is in response to a civil or criminal judgment or
1340 settlement; and
1341 (B) the division initiates the disciplinary action no later than one year after the day on
1342 which the judgment is issued or the settlement is final; or
1343 (ii) the division and the person subject to a disciplinary action enter into a written
1344 stipulation to extend the time period described in Subsection (6)(a).