13-42-109. Certification of registration -- Issuance or denial.
(1) Except as otherwise provided in Subsections (2) and (3), the administrator shall issue
a certificate of registration as a provider to a person that complies with Sections 13-42-105 and
13-42-106.
(2) The administrator may deny registration if:
(a) the application contains information that is materially erroneous or incomplete;
(b) an officer, director, or owner of the applicant has been convicted of a crime, or
suffered a civil judgment, involving dishonesty or the violation of state or federal securities laws;
(c) the applicant or any of its officers, directors, or owners has defaulted in the payment
of money collected for others; or
(d) the administrator finds that the financial responsibility, experience, character, or
general fitness of the applicant or its owners, directors, employees, or agents does not warrant
belief that the business will be operated in compliance with this chapter.
(3) The administrator shall deny registration if:
(a) the application is not accompanied by the fee established by the administrator in
accordance with Section 63J-1-303; or
(b) with respect to an applicant that is organized as a not-for-profit entity or has obtained
tax-exempt status under the Internal Revenue Code, 26 U.S.C. Section 501, the applicant's board
of directors is not independent of the applicant's employees and agents.
(4) Subject to adjustment of the dollar amount pursuant to Subsection 13-42-132(6), a
board of directors is not independent for purposes of Subsection (3) if more than one-fourth of its
members:
(a) are affiliates of the applicant, as defined in Subsection 13-42-102(2)(a) or
13-42-102(2)(b)(i), (ii), (iv), (v), (vi), or (vii); or
(b) after the date ten years before first becoming a director of the applicant, were
employed by or directors of a person that received from the applicant more than $25,000 in either
the current year or the preceding year.
Amended by Chapter 382, 2008 General Session
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Last revised: Thursday, May 01, 2008