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S.B. 172

This document includes House Floor Amendments incorporated into the bill on Tue, Mar 1, 2005 at 9:25 AM by chopkin. -->              1     

DIVISION OF REAL ESTATE AMENDMENTS

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Michael G. Waddoups

             5     

             6      LONG TITLE
             7      General Description:
             8          This bill modifies provisions related to the regulation of the real estate, appraiser, and
             9      mortgage industries by the Division of Real Estate.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies the Real Estate provisions including:
             13              .    permitting a member of the Real Estate Commission to continue to hold office
             14      until a successor is appointed and qualified;
             15              .    allowing the Real Estate Commission to delegate functions to the division
             16      related to licensing;
             17              .    addressing changes in information provided to the division;
             18              .    making certain funds nonlapsing;
             19              .    addressing revocation of licenses;
             20              .    modifying grounds for disciplinary action; and
             21              .    addressing disciplinary action and judicial review;
             22          .    modifies the Real Estate Appraiser Licensing and Certification Act including:
             23              .    modifying references to registration;
             24              .    amending definition provisions;
             25              .    repealing references to senior appraisers;
             26              .    addressing when licensing and certification is required;
             27              .    modifying the duties of the division including determining fees;



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             .    providing for trainees;
             29              .    addressing registration of expert witnesses;
             30              .    addressing when division is to make available certain information;
             31              .    modifying provisions related to the Real Estate Appraiser Licensing and
             32      Certification Board including makeup and duties of the board;
             33              .    addressing applying for licensure or certification;
             34              .    effective January 1, 2008, modifying the authority and qualifications of a
             35      state-licensed appraiser;
             36              .    effective January 1, 2008, modifying provisions related to state-certified
             37      residential appraisers;
             38              .    effective January 1, 2008, modifying provisions related to state-certified general
             39      appraisers;
             40              .    modifying restrictions on use of terms and provisions related to appraisal
             41      reports;
             42              .    providing limits on a person acting as a trainee if the person's license or
             43      certification is revoked;
             44              .    addressing recordkeeping; and
             45              .    addressing the duty of the division to provide the public information concerning
             46      appraisers;
             47          .    modifies the Utah Residential Mortgage Practices Act including:
             48              .    modifying definition provisions;
             49              .    addressing fees charged by the division;
             50              .    making permissive providing a list of names and mailing addresses of licensees;
             51              .    providing for an alternate member to the Residential Mortgage Regulatory
             52      Commission;
             53              .    allowing the commission to delegate to the division authority related to
             54      licensing including outlining procedures in case of a denial of license;
             55              .    addressing when address information is public;
             56              .    addressing use of an assumed business name;
             57              .    providing for conversion of registrations to licenses;
             58              .    providing that certain fees are nonlapsing;



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             .    addressing post-revocation hearings and ability to apply for a new license;
             60              .    modifying qualifications for licensure related to criminal history;
             61              .    addressing renewal of licensing;
             62              .    requiring reporting of changes;
             63              .    addressing lending manager licenses;
             64              .    including title insurance agent in the list of capacities that a licensee cannot
             65      engage in with respect to the same residential mortgage loan transaction;
             66              .    clarifying language applicable to disciplinary action and adjudicative
             67      proceedings; and
             68              .    extending the implementation of the principal lender manager licensing; and
             69          .    makes technical changes.
             70      Monies Appropriated in this Bill:
             71          None
             72      Other Special Clauses:
             73          This bill provides an effective date.
             74      Utah Code Sections Affected:
             75      AMENDS:
             76          61-2-5.5, as last amended by Chapters 102 and 243, Laws of Utah 1996
             77          61-2-6, as last amended by Chapter 90, Laws of Utah 2004
             78          61-2-7.1, as last amended by Chapter 86, Laws of Utah 2000
             79          61-2-9, as last amended by Chapter 129, Laws of Utah 2004
             80          61-2-11, as last amended by Chapter 351, Laws of Utah 1997
             81          61-2-12, as last amended by Chapter 173, Laws of Utah 1999
             82          61-2b-2, as last amended by Chapter 117, Laws of Utah 1999
             83          61-2b-3, as last amended by Chapter 117, Laws of Utah 1999
             84          61-2b-6, as last amended by Chapter 86, Laws of Utah 2000
             85          61-2b-7, as last amended by Chapter 176, Laws of Utah 2002
             86          61-2b-8, as last amended by Chapter 117, Laws of Utah 1999
             87          61-2b-9, as last amended by Chapter 117, Laws of Utah 1999
             88          61-2b-10, as last amended by Chapter 214, Laws of Utah 2001
             89          61-2b-14, as last amended by Chapter 117, Laws of Utah 1999



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             90
         61-2b-15, as last amended by Chapter 117, Laws of Utah 1999
             91          61-2b-17, as last amended by Chapter 214, Laws of Utah 2001
             92          61-2b-18, as last amended by Chapter 86, Laws of Utah 2000
             93          61-2b-19, as last amended by Chapter 117, Laws of Utah 1999
             94          61-2b-20, as last amended by Chapter 117, Laws of Utah 1999
             95          61-2b-21, as last amended by Chapter 117, Laws of Utah 1999
             96          61-2b-22, as last amended by Chapter 117, Laws of Utah 1999
             97          61-2b-24, as last amended by Chapter 117, Laws of Utah 1999
             98          61-2b-26, as last amended by Chapter 86, Laws of Utah 2000
             99          61-2b-27, as last amended by Chapter 86, Laws of Utah 2000
             100          61-2b-28, as last amended by Chapter 117, Laws of Utah 1999
             101          61-2b-29, as last amended by Chapter 117, Laws of Utah 1999
             102          61-2b-30.5, as enacted by Chapter 117, Laws of Utah 1999
             103          61-2b-31, as last amended by Chapter 117, Laws of Utah 1999
             104          61-2b-33, as last amended by Chapter 117, Laws of Utah 1999
             105          61-2b-34, as last amended by Chapter 117, Laws of Utah 1999
             106          61-2b-36, as last amended by Chapter 117, Laws of Utah 1999
             107          61-2b-38, as last amended by Chapter 117, Laws of Utah 1999
             108          61-2b-39, as last amended by Chapter 117, Laws of Utah 1999
             109          61-2b-40, as last amended by Chapter 117, Laws of Utah 1999
             110          61-2c-102, as last amended by Chapter 297, Laws of Utah 2004
             111          61-2c-103, as last amended by Chapter 297, Laws of Utah 2004
             112          61-2c-104, as last amended by Chapters 297 and 297, Laws of Utah 2004
             113          61-2c-106 (Superseded 01/01/06), as last amended by Chapter 243, Laws of Utah 2003
             114          61-2c-106 (Effective 01/01/06), as last amended by Chapter 297, Laws of Utah 2004
             115          61-2c-201, as last amended by Chapter 297, Laws of Utah 2004
             116          61-2c-202, as last amended by Chapter 297, Laws of Utah 2004
             117          61-2c-203, as last amended by Chapter 297, Laws of Utah 2004
             118          61-2c-205, as last amended by Chapter 297, Laws of Utah 2004
             119          61-2c-206, as enacted by Chapter 297, Laws of Utah 2004
             120          61-2c-208, as enacted by Chapter 297, Laws of Utah 2004



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             121
         61-2c-301, as last amended by Chapter 297, Laws of Utah 2004
             122          61-2c-402, as last amended by Chapter 297, Laws of Utah 2004
             123          61-2c-404, as enacted by Chapter 297, Laws of Utah 2004
             124      ENACTS:
             125          61-2c-201.1, Utah Code Annotated 1953
             126          61-2c-402.1, Utah Code Annotated 1953
             127      REPEALS:
             128          61-2b-15.6, as enacted by Chapter 117, Laws of Utah 1999
             129      Uncodified Material Affected:
             130      AMENDS UNCODIFIED MATERIAL:
             131      Uncodified Section 32, Chapter 297, Laws of Utah 2004
             132     

             133      Be it enacted by the Legislature of the state of Utah:
             134          Section 1. Section 61-2-5.5 is amended to read:
             135           61-2-5.5. Real Estate Commission created -- Functions -- Appointment --
             136      Qualification and terms of members -- Expenses -- Meetings.
             137          (1) There is created within the division a Real Estate Commission. The commission
             138      shall:
             139          (a) make rules for the administration of this chapter [which] that are not inconsistent
             140      with this chapter, including:
             141          (i) licensing of:
             142          (A) principal brokers[,];
             143          (B) associate brokers[,];
             144          (C) sales agents[,];
             145          (D) real estate companies[,]; and
             146          (E) branch offices;
             147          (ii) prelicensing and postlicensing education curricula[,];
             148          (iii) examination procedures[, and];
             149          (iv) the certification and conduct of:
             150          (A) real estate schools[,];
             151          (B) course providers[,]; and



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         (C) instructors;
             153          [(iii)] (v) proper handling of funds received by real estate licensees[, and];
             154          (vi) brokerage office procedures and recordkeeping requirements;
             155          [(iv)] (vii) property management; and
             156          [(v)] (viii) standards of conduct for real estate licensees;
             157          (b) establish, with the concurrence of the division, all fees as provided in this chapter
             158      and Title 61, Chapter 2a, Real Estate Recovery Fund Act;
             159          (c) conduct all administrative hearings not delegated by [it] the commission to an
             160      administrative law judge or the division relating to the:
             161          (i) licensing of any applicant[,];
             162          (ii) conduct of any licensee[,]; or
             163          (iii) the certification or conduct of any real estate school, course provider, or instructor
             164      regulated under this chapter;
             165          (d) with the concurrence of the director, impose sanctions against licensees and
             166      certificate holders as provided in Section 61-2-11 ;
             167          (e) advise the director on the administration and enforcement of any matters affecting
             168      the division and the real estate sales and property management industries;
             169          (f) advise the director on matters affecting the division budget;
             170          (g) advise and assist the director in conducting real estate seminars; and
             171          (h) perform other duties as provided by:
             172          (i) this chapter; and
             173          (ii) Title 61, Chapter 2a, Real Estate Recovery Fund Act.
             174          (2) (a) The commission shall be comprised of five members appointed by the governor
             175      and approved by the Senate.
             176          (b) Four of the commission members shall:
             177          (i) have at least five years' experience in the real estate business; and [shall]
             178          (ii) hold an active principal broker, associate broker, or sales agent license.
             179          (c) One commission member shall be a member of the general public.
             180          (d) No more than one commission member may be appointed from any given county in
             181      the state.
             182          (3) (a) Except as required by Subsection (3)(b), as terms of current commission



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     members expire, the governor shall appoint each new member or reappointed member to a
             184      four-year term ending June 30.
             185          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             186      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             187      commission members are staggered so that approximately half of the commission is appointed
             188      every two years.
             189          (c) Upon the expiration of the term of a member of the commission, the member of the
             190      commission shall continue to hold office until a successor is appointed and qualified.
             191          [(c)] (d) A commission member may not serve more than one consecutive term.
             192          [(d)] (e) Members of the commission shall annually select one member to serve as
             193      chair.
             194          (4) When a vacancy occurs in the membership for any reason, the replacement shall be
             195      appointed for the unexpired term.
             196          (5) (a) [Members] A member shall receive no compensation or benefits for [their] the
             197      member's services, but may receive per diem and expenses incurred in the performance of the
             198      member's official duties at the rates established by the Division of Finance under Sections
             199      63A-3-106 and 63A-3-107 .
             200          (b) [Members] A member may decline to receive per diem and expenses for [their] the
             201      member's service.
             202          (6) (a) The commission shall meet at least monthly.
             203          (b) The director may call additional meetings:
             204          (i) at [his] the director's discretion [or];
             205          (ii) upon the request of the chair; or
             206          (iii) upon the written request of three or more commission members.
             207          (7) Three members of the commission constitute a quorum for the transaction of
             208      business.
             209          Section 2. Section 61-2-6 is amended to read:
             210           61-2-6. Licensing procedures and requirements.
             211          (1) (a) [The Real Estate Commission] Except as provided in Subsection (5), the
             212      commission shall determine the qualifications and requirements of applicants for:
             213          (i) a principal broker license[,];



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             214
         (ii) an associate broker[,] license; or
             215          (iii) a sales agent license.
             216          (b) The division, with the concurrence of the commission, shall require and pass upon
             217      proof necessary to determine the honesty, integrity, truthfulness, reputation, and competency of
             218      each applicant for an initial license or for renewal of an existing license.
             219          (c) (i) The division, with the concurrence of the commission, shall require an applicant
             220      for:
             221          (A) a sales agent license to complete an approved educational program not to exceed
             222      90 hours[,]; and [an applicant for]
             223          (B) an associate broker or principal broker license to complete an approved educational
             224      program not to exceed 120 hours.
             225          (ii) The hours required by this section mean 50 minutes of instruction in each 60
             226      minutes[; and the].
             227          (iii) The maximum number of program hours available to an individual is ten hours per
             228      day.
             229          (d) The division, with the concurrence of the commission, shall require the applicant to
             230      pass an examination approved by the commission covering:
             231          (i) the fundamentals of:
             232          (A) the English language[,];
             233          (B) arithmetic[,];
             234          (C) bookkeeping[,]; and
             235          (D) real estate principles and practices[,];
             236          (ii) the provisions of this chapter[,];
             237          (iii) the rules established by the [Real Estate Commission,] commission; and
             238          (iv) any other aspect of Utah real estate license law considered appropriate.
             239          (e) (i) Three years' full-time experience as a real estate sales agent or its equivalent is
             240      required before any applicant may apply for, and secure a principal broker or associate broker
             241      license in this state.
             242          (ii) The commission shall establish by rule, made in accordance with Title 63, Chapter
             243      46a, Utah Administrative Rulemaking Act, the criteria by which [it] the commission will
             244      accept experience or special education in similar fields of business in lieu of the three years'



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             245
     experience.
             246          (2) (a) The division, with the concurrence of the commission, may require an applicant
             247      to furnish a sworn statement setting forth evidence satisfactory to the division of the applicant's
             248      reputation and competency as set forth by rule.
             249          (b) The division shall require an applicant to provide [his] the applicant's Social
             250      Security number, which is a private record under Subsection 63-2-302 (1)(h).
             251          (3) (a) A nonresident principal broker may be licensed in this state by conforming to all
             252      the provisions of this chapter except that of residency.
             253          (b) A nonresident associate broker or sales agent may become licensed in this state by:
             254          (i) conforming to all the provisions of this chapter except that of residency; and [by]
             255          (ii) being employed or engaged as an independent contractor by or on behalf of a
             256      nonresident or resident principal broker who is licensed in this state.
             257          (4) [An] (a) Except as provided in Subsection 61-2-9 (1)(e)(iv), an applicant who has
             258      had a real estate license revoked:
             259          (i) shall be relicensed as prescribed for an original application[, but]; and
             260          (ii) may not apply for a new license until at least five years after the [revocation] day
             261      on which the license is revoked.
             262          (b) In the case of an applicant for a new license as a principal broker or associate
             263      broker, the applicant is not entitled to credit for experience gained prior to the revocation of a
             264      real estate license.
             265          (5) (a) Notwithstanding Subsection (1), the commission may delegate to the division
             266      the authority to:
             267          (i) review a class or category of applications for initial or renewed licenses;
             268          (ii) determine whether an applicant meets the licensing criteria in Subsection (1); and
             269          (iii) approve or deny a license application without concurrence by the commission.
             270          (b) (i) If the commission delegates to the division the authority to approve or deny an
             271      application without concurrence by the commission and the division denies an application for
             272      licensure, the applicant who is denied licensure may petition the commission for review of the
             273      denial of licensure.
             274          (ii) An applicant who is denied licensure pursuant to this Subsection (5) may seek
             275      agency review by the executive director only after the commission has reviewed the division's



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             276
     denial of the applicant's application.
             277          Section 3. Section 61-2-7.1 is amended to read:
             278           61-2-7.1. Change of information -- Failure to notify -- Notification to an
             279      applicant, licensee, or certificate holder.
             280          [Each] (1) An applicant, licensee, or certificate holder shall send the division a signed
             281      statement in the form required by the division notifying the division within ten business days of
             282      any change of [principal business location or home street address within ten business days of
             283      the change. In providing an address to the division]:
             284          (a) principal broker;
             285          (b) principal business location;
             286          (c) mailing address;
             287          (d) home street address;
             288          (e) an individual's name; or
             289          (f) business name.
             290          (2) The division may charge a fee established in accordance with Section 63-38-3.2 for
             291      processing any notification of change submitted by an applicant, licensee, or certificate holder.
             292          (3) (a) When providing the division a business location or home street address, a
             293      physical location or street address must be provided.
             294          (b) When providing a mailing address, an applicant, licensee, or certificate holder may
             295      provide a post office box or other mail drop location.
             296          (4) Failure to notify the division of a change [of business location] described in
             297      Subsection (1) is separate grounds for disciplinary action against the applicant, licensee, or
             298      certificate holder. [A]
             299          (5) An applicant, licensee, or certificate holder [will be] is considered to have received
             300      any notification [which] that has been sent to the last address furnished to the division by the
             301      applicant, licensee, or certificate holder.
             302          Section 4. Section 61-2-9 is amended to read:
             303           61-2-9. Examination and license fees -- Background check -- Renewal of licenses
             304      -- Education requirements -- Activation of inactive licenses -- Recertification -- Licenses
             305      of firm, partnership, or association -- Miscellaneous fees.
             306          (1) (a) Upon filing an application for a principal broker, associate broker, or sales agent



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     license examination, the applicant shall pay a nonrefundable fee as determined by the
             308      commission with the concurrence of the division under Section 63-38-3.2 for admission to the
             309      examination.
             310          (b) A principal broker, associate broker, or sales agent applicant shall pay a
             311      nonrefundable fee as determined by the commission with the concurrence of the division under
             312      Section 63-38-3.2 for issuance of an initial license or license renewal.
             313          (c) Each license issued under this Subsection (1) shall be issued for a period of not less
             314      than two years as determined by the division with the concurrence of the commission.
             315          (d) (i) Any new sales agent applicant shall:
             316          (A) submit fingerprint cards in a form acceptable to the division at the time the license
             317      application is filed; and [shall]
             318          (B) consent to a fingerprint background check by the Utah Bureau of Criminal
             319      Identification and the Federal Bureau of Investigation regarding the application.
             320          (ii) The division shall request the Department of Public Safety to complete a Federal
             321      Bureau of Investigation criminal background check for each new sales agent applicant through
             322      the national criminal history system (NCIC) or any successor system.
             323          (iii) The cost of the background check and the fingerprinting shall be borne by the
             324      applicant.
             325          (iv) Funds paid to the division by an applicant for the cost of the background check
             326      shall be nonlapsing.
             327          (e) (i) Any new sales agent license issued under this section shall be conditional,
             328      pending completion of the criminal background check. If the criminal background check
             329      discloses the applicant has failed to accurately disclose a criminal history, the license shall be
             330      immediately and automatically revoked.
             331          (ii) Any person whose conditional license has been revoked under Subsection (1)(e)(i)
             332      shall be entitled to a post-revocation hearing to challenge the revocation. The hearing shall be
             333      conducted in accordance with Title 63, Chapter 46b, Administrative Procedures Act.
             334          (iii) The division director shall designate one of the following to act as the presiding
             335      officer in a post-revocation hearing described in this Subsection (1)(e):
             336          (A) the division; or
             337          (B) the division with the concurrence of the commission.



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             338
         (iv) The decision on whether relief from the revocation of a license under this
             339      Subsection (1)(e) will be granted shall be made by the presiding officer.
             340          (v) Relief from a revocation under this Subsection (1)(e) may be granted only if:
             341          (A) the criminal history upon which the division based the revocation:
             342          (I) did not occur; or
             343          (II) is the criminal history of another person;
             344          (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
             345          (II) the applicant had a reasonable good faith belief at the time of application that there
             346      was no criminal history to be disclosed; or
             347          (C) the division failed to follow the prescribed procedure for the revocation.
             348          (vi) If a revocation under this Subsection (1)(e) is upheld after a post-revocation
             349      hearing, the person may not apply for a new license until at least 12 months after the day on
             350      which the final decision upholding the revocation is issued.
             351          (2) (a) (i) A license expires if it is not renewed on or before its expiration date.
             352          (ii) As [as] a condition of renewal, each active licensee shall demonstrate competence:
             353          (A) by viewing an approved real estate education video program and completing a
             354      supplementary workbook; or
             355          (B) by completing 12 hours of professional education approved by the division and
             356      commission within each two-year renewal period.
             357          (iii) The division with the concurrence of the commission shall certify education which
             358      may include:
             359          (A) state conventions[,];
             360          (B) home study courses[,];
             361          (C) video courses[,]; and
             362          (D) closed circuit television courses.
             363          (iv) The commission with concurrence of the division may exempt a licensee from
             364      [this] the education requirement of this Subsection (2)(a) for a period not to exceed four years:
             365          (A) upon a finding of reasonable cause, including military service; and
             366          (B) under conditions established by rule made in accordance with Title 63, Chapter
             367      46a, Utah Administrative Rulemaking Act.
             368          (b) For a period of 30 days after the expiration date of a license, [a] the license may be



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             369
     reinstated upon:
             370          (i) payment of a renewal fee and a late fee determined by the commission with the
             371      concurrence of the division under Section 63-38-3.2 ; and [upon]
             372          (ii) providing proof acceptable to the division and the commission of the licensee
             373      having completed the hours of education or demonstrated competence as required under
             374      Subsection (2)(a).
             375          (c) After [this] the 30-day period described in Subsection (2)(b), and until six months
             376      after the expiration date, the license may be reinstated by:
             377          (i) paying a renewal fee and a late fee determined by the commission with the
             378      concurrence of the division under Section 63-38-3.2 ;
             379          (ii) providing to the division proof of satisfactory completion of 12 hours of continuing
             380      education:
             381          (A) in addition to the requirements for a timely renewal; and
             382          (B) on a subject determined by the commission by rule made in accordance with Title
             383      63, Chapter 46a, Utah Administrative Rulemaking Act; and
             384          (iii) providing proof acceptable to the division and the commission of the licensee
             385      having completed the hours of education or demonstrated competence as required under
             386      Subsection (2)(a).
             387          (d) A person who does not renew [his] that person's license within six months after the
             388      expiration date shall be relicensed as prescribed for an original application.
             389          (3) (a) As a condition for the activation of an inactive license that was in an inactive
             390      status at the time of the licensee's most recent renewal, the licensee shall supply the division
             391      with proof of:
             392          (i) successful completion of the respective sales agent or broker licensing examination
             393      within six months prior to applying to activate the license; or
             394          (ii) the successful completion of 12 hours of continuing education that the licensee
             395      would have been required to complete under Subsection (2)(a) if the license had been on active
             396      status at the time of the licensee's most recent renewal.
             397          (b) The commission may, in accordance with Title 63, Chapter 46a, Utah
             398      Administrative Rulemaking Act, establish by rule:
             399          (i) the nature or type of continuing education required for reactivation of a license; and



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             400
         (ii) how long prior to reactivation the continuing education must have been completed.
             401          (4) (a) A principal broker license may be granted to a corporation, partnership, or
             402      association if the corporation, partnership, or association has affiliated with it an individual
             403      who:
             404          (i) has qualified as a principal broker under the terms of this chapter[,]; and [who]
             405          (ii) serves in the capacity of a principal broker.
             406          (b) Application for the license described in Subsection (4)(a) shall be made in
             407      accordance with the rules adopted by the division with the concurrence of the commission.
             408          (5) The division may charge and collect reasonable fees determined by the commission
             409      with the concurrence of the division under Section 63-38-3.2 to cover the costs for:
             410          (a) issuance of a new or duplicate license;
             411          (b) license histories or certifications;
             412          (c) certified copies of official documents, orders, and other papers and transcripts;
             413          (d) certifying real estate schools, courses, and instructors, the fees for which shall,
             414      notwithstanding Section 13-1-2 , be deposited in the Real Estate Education, Research, and
             415      Recovery Fund; and
             416          (e) other duties required by this chapter.
             417          (6) If a licensee submits or causes to be submitted a check, draft, or other negotiable
             418      instrument to the division for payment of fees, and the check, draft, or other negotiable
             419      instrument is dishonored, the transaction for which the payment was submitted is void and will
             420      be reversed by the division if payment of the applicable fee is not received in full.
             421          (7) (a) The fees under this chapter and the additional license fee for the Real Estate
             422      Education, Research, and Recovery Fund under Section 61-2a-4 are in lieu of all other license
             423      fees or assessments that might otherwise be imposed or charged by the state or any of its
             424      political subdivisions, upon, or as a condition of, the privilege of conducting the business
             425      regulated by this chapter, except that a political subdivision within the state may charge a
             426      business license fee if the licensee maintains a place of business within the jurisdiction of the
             427      political subdivision.
             428          (b) Unless otherwise exempt, each licensee under this chapter is subject to all taxes
             429      imposed under Title 59, Revenue and Taxation.
             430          Section 5. Section 61-2-11 is amended to read:



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             431
          61-2-11. Investigations -- Subpoena power of division -- Grounds for disciplinary
             432      action.
             433          The division may investigate or cause to be investigated the actions of any principal
             434      broker, associate broker, sales agent, real estate school, course provider, or school instructor
             435      licensed or certified by this state, or of any applicant for licensure or certification, or of any
             436      person who acts in any of those capacities within this state. The division is empowered to
             437      subpoena witnesses, take evidence, and require by subpoena duces tecum the production of
             438      books, papers, contracts, records, other documents, or information considered relevant to the
             439      investigation. The division may serve subpoenas by certified mail. Each failure to respond to a
             440      subpoena is considered as a separate violation of this chapter. The commission, with the
             441      concurrence of the director, may impose a civil penalty in an amount not to exceed $500 per
             442      violation, impose educational requirements, and suspend, revoke, place on probation, or deny
             443      renewal, reinstatement, or reissuance of any license or any certification if at any time the
             444      licensee or certificate holder, whether acting as an agent or on his own account, is found guilty
             445      of:
             446          (1) making any substantial misrepresentation;
             447          (2) making any false promises of a character likely to influence, persuade, or induce;
             448          (3) pursuing a continued and flagrant course of misrepresentation, or of making false
             449      promises through agents, sales agents, advertising, or otherwise;
             450          (4) acting for more than one party in a transaction without the informed consent of all
             451      parties;
             452          (5) (a) acting as an associate broker or sales agent while not licensed with a licensed
             453      principal broker[,];
             454          (b) representing or attempting to represent a broker other than the principal broker with
             455      whom [he] the person is affiliated[,]; or
             456          (c) representing as sales agent or having a contractual relationship similar to that of
             457      sales agent with other than a licensed principal broker;
             458          (6) (a) failing, within a reasonable time, to account for or to remit any monies coming
             459      into [his] the person's possession that belong to others[, or commingling those funds with his
             460      own, or diverting those funds];
             461          (b) commingling the funds described in Subsection (6)(a) with the person's own; or



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             462
         (c) diverting the funds described in Subsection (6)(a) from the purpose for which they
             463      were received;
             464          (7) paying or offering to pay valuable consideration, as defined by the commission, to
             465      any person not licensed under this chapter, except that:
             466          (a) valuable consideration may be shared with a licensed principal broker of another
             467      jurisdiction or as provided under the Professional Corporation Act or the Limited Liability
             468      Company Act; and
             469          (b) the valuable consideration to be paid to a licensee for the performance of any of the
             470      acts specified in this chapter may be paid by the licensee's principal broker to the licensee's
             471      Sub-Chapter S corporation;
             472          (8) being unworthy or incompetent to act as a principal broker, associate broker, or
             473      sales agent in such manner as to safeguard the interests of the public;
             474          (9) failing to voluntarily furnish copies of all documents to all parties executing the
             475      documents;
             476          (10) failing to keep and make available for inspection by the division a record of each
             477      transaction, including:
             478          (a) the names of buyers and sellers or lessees and lessors[,];
             479          (b) the identification of the property[,];
             480          (c) the sale or rental price[,];
             481          (d) any monies received in trust[,];
             482          (e) any agreements or instructions from buyers and sellers or lessees and lessors[,]; and
             483          (f) any other information required by rule;
             484          (11) failing to disclose, in writing, in the purchase, sale, or rental of property, whether
             485      the purchase, sale, or rental is made for himself or for an undisclosed principal;
             486          (12) regardless of whether the crime was related to real estate, being convicted of a
             487      criminal offense involving moral turpitude within five years of the most recent application,
             488      including a conviction based upon a plea of nolo contendere, or a plea held in abeyance to a
             489      criminal offense involving moral turpitude;
             490          (13) advertising the availability of real estate or the services of a licensee in a false,
             491      misleading, or deceptive manner;
             492          (14) in the case of a principal broker or a licensee who is a branch manager, failing to



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             493
     exercise reasonable supervision over the activities of [his] the principal broker's or branch
             494      manager's licensees and any unlicensed staff;
             495          (15) violating or disregarding this chapter, an order of the commission, or the rules
             496      adopted by the commission and the division;
             497          (16) breaching a fiduciary duty owed by a licensee to [his] the licensee's principal in a
             498      real estate transaction;
             499          (17) any other conduct which constitutes dishonest dealing;
             500          (18) unprofessional conduct as defined by statute or rule; or
             501          (19) suspension, revocation, surrender, or cancellation of a real estate license issued by
             502      another jurisdiction, or of another professional license issued by this or another jurisdiction,
             503      based on misconduct in a professional capacity that relates to character, honesty, integrity, or
             504      truthfulness.
             505          Section 6. Section 61-2-12 is amended to read:
             506           61-2-12. Disciplinary action -- Judicial review.
             507          (1) (a) [Before imposing an educational requirement, a civil penalty, revoking,
             508      suspending, placing on probation, or denying the renewal, reinstatement, or reissuance of any
             509      license or certificate based on] On the basis of a violation of Section 61-2-11 , the division shall
             510      give notice to the licensee or certificate holder and [schedule] commence an adjudicative
             511      proceeding[.] before:
             512          (i) imposing an educational requirement;
             513          (ii) imposing a civil penalty; or
             514          (iii) taking any of the following actions related to a license or certificate:
             515          (A) revoking;
             516          (B) suspending;
             517          (C) placing on probation; or
             518          (D) denying the renewal, reinstatement, or reissuance.
             519          (b) If the licensee is an active sales agent or active associate broker, the division shall
             520      inform the principal broker with whom the licensee is affiliated of the charge and of the time
             521      and place of [the] any hearing.
             522          (c) If [after] the presiding officer at a hearing [the commission] determines that any
             523      licensee or certificate holder is guilty of a violation of this chapter, the division by written order



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             524
     may:
             525          (i) with regard to the license or certificate [may be suspended, revoked, denied]:
             526          (A) suspend;
             527          (B) revoke;
             528          (C) place on probation; or
             529          (D) deny renewal, reinstatement, or reissuance[,]; or
             530          (ii) impose a civil penalty [may be imposed by written order of the commission in
             531      concurrence with the director].
             532          (2) (a) Any applicant, certificate holder, licensee, or person aggrieved, including the
             533      complainant, may obtain [judicial review or] agency review by the executive director and
             534      judicial review of any adverse ruling, order, or decision of the [director and the commission]
             535      division.
             536          (b) If the applicant, certificate holder, or licensee prevails in the appeal and the court
             537      finds that the state action was undertaken without substantial justification, the court may award
             538      reasonable litigation expenses to the applicant, certificate holder, or licensee as provided under
             539      Title 78, Chapter 27a, Small Business Equal Access to Justice Act.
             540          (c) (i) An order, [rule] ruling, or decision of the [director and the commission] division
             541      shall take effect and become operative 30 days after the service [thereof] of the order, ruling, or
             542      decision unless otherwise provided in the order.
             543          (ii) If an appeal is taken by a licensee, the division may stay enforcement of [the
             544      commission's action] an order, ruling, or decision in accordance with [the provisions of]
             545      Section 63-46b-18 .
             546          (iii) The appeal shall be governed by the Utah Rules of Appellate Procedure.
             547          (3) The commission and the director shall comply with the procedures and
             548      requirements of Title 63, Chapter 46b, Administrative Procedures Act, in [their] all
             549      adjudicative proceedings.
             550          Section 7. Section 61-2b-2 is amended to read:
             551           61-2b-2. Definitions.
             552          (1) As used in this chapter:
             553          [(1)] (a) (i) "Appraisal" means an unbiased analysis, opinion, or conclusion relating to
             554      the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate



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             555
     or identified real property.
             556          [(b) Appraisals] (ii) An appraisal shall be classified by the nature of the assignment as
             557      a valuation appraisal, an analysis assignment, or a review assignment in accordance with the
             558      following definitions:
             559          [(i)] (A) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
             560      estimates the value of an identified parcel of real estate or identified real property at a particular
             561      point in time.
             562          [(ii)] (B) “Analysis assignment" means an unbiased analysis, opinion, or conclusion
             563      that relates to the nature, quality, or utility of identified real estate or identified real property.
             564          [(iii)] (C) “Review assignment" means an unbiased analysis, opinion, or conclusion
             565      that forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an
             566      analysis assignment.
             567          [(2)] (b) "Appraisal Foundation" means the Appraisal Foundation that was
             568      incorporated as an Illinois not-for-profit corporation on November 30, 1987.
             569          [(3) (a)] (c) (i) "Appraisal report" means any communication, written or oral, of an
             570      appraisal.
             571          [(b)] (ii) An appraisal report shall be classified by the nature of the assignment as a
             572      valuation report, analysis report, or review report in accordance with the definitions provided in
             573      Subsection (1)[(b)](a)(ii).
             574          [(c)] (iii) The testimony of a person relating to the person's analyses, conclusions, or
             575      opinions concerning identified real estate or identified real property is considered to be an oral
             576      appraisal report.
             577          [(4)] (d) "Board" means the Real Estate Appraiser Licensing and Certification Board
             578      that is established in Section 61-2b-7 .
             579          [(5)] (e) "Certified appraisal report" means a written or oral appraisal report that is
             580      certified by a state-certified general appraiser or state-certified residential appraiser.
             581          [(6) (a) (i)] (f) (i) (A) “Consultation service” means an engagement to provide a real
             582      estate valuation service analysis, opinion, conclusion, or other service that does not fall within
             583      the definition of appraisal.
             584          [(ii)] (B) “Consultation service” does not mean a valuation appraisal, analysis
             585      assignment, or review assignment.



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             586
         [(b)] (ii) Regardless of the intention of the client or employer, if a person prepares an
             587      unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
             588      be an appraisal and not a consultation service.
             589          [(7)] (g) “Contingent fee” means a fee or other form of compensation, payment of
             590      which is dependent on or conditioned by:
             591          [(a)] (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
             592      performing the analysis, opinion, or conclusion; or
             593          [(b)] (ii) achieving a result specified by the person requesting the analysis, opinion, or
             594      conclusion.
             595          [(8)] (h) "Division" means the Division of Real Estate of the Department of
             596      Commerce.
             597          [(9)] (i) "Federally related transaction" means any real estate related transaction
             598      [which] that is required by federal law or by federal regulation to be supported by an appraisal
             599      prepared by:
             600          (i) a state-licensed appraiser; or
             601          (ii) a state-certified appraiser.
             602          [(10)] (j) "Real estate" means an identified parcel or tract of land including
             603      improvements if any.
             604          [(11)] (k) "Real estate appraisal activity" means the act or process of making an
             605      appraisal of real estate or real property and preparing an appraisal report.
             606          [(12)] (l) "Real estate related transaction" means:
             607          [(a)] (i) the sale, lease, purchase, investment in, or exchange of real property or an
             608      interest in real property, or the financing of such a transaction;
             609          [(b)] (ii) the refinancing of real property or an interest in real property; or
             610          [(c)] (iii) the use of real property or an interest in real property as security for a loan or
             611      investment, including mortgage-backed securities.
             612          [(13)] (m) "Real property" means one or more defined interests, benefits, or rights
             613      inherent in the ownership of real estate.
             614          [(14) "Senior appraiser" means a person grandfathered under this chapter who holds a
             615      current, valid state registration as a real estate appraiser whose registration was issued to the
             616      person based on the person's experience or designation as a member in good standing in an



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             617
     appraisal organization that is a member of the Appraisal Foundation.]
             618          [(15)] (n) "State-certified general appraiser" means a person who holds a current, valid
             619      certification as a state-certified general appraiser issued under [the provisions of] this chapter.
             620          [(16)] (o) "State-certified residential appraiser" means a person who holds a current,
             621      valid certification as a state-certified residential real estate appraiser issued under [the
             622      provisions of] this chapter.
             623          [(17)] (p) "State-licensed appraiser" means a person who holds a current, valid license
             624      as a state-licensed appraiser issued under [the provisions of] this chapter.
             625          [(18)] (q) "State-registered appraiser" means a person who [holds a current, valid state
             626      registration as a real estate appraiser issued under the provisions of] before May 3, 1999, was
             627      registered as an appraiser under this chapter.
             628          (r) "Trainee" means an individual who:
             629          (i) does not hold an appraiser license or appraiser certification issued under this
             630      chapter; and
             631          (ii) works under the direct supervision of a state-licensed appraiser or state-certified
             632      appraiser to earn experience for licensure.
             633          [(19)] (s) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
             634      conclusion relating to the nature, quality, value, or utility [or] of identified real estate or
             635      identified real property that is prepared by a person who is employed or retained to act, or
             636      would be perceived by third parties or the public as acting, as a disinterested third party in
             637      rendering the analysis, opinion, or conclusion.
             638          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             639      meaning established by the division by rule made in accordance with Title 63, Chapter 46a,
             640      Utah Administrative Rulemaking Act.
             641          (b) If a term not defined in this section is not defined by rule, the term shall have the
             642      meaning commonly accepted in the business community.
             643          Section 8. Section 61-2b-3 is amended to read:
             644           61-2b-3. License or certification required.
             645          (1) Except as provided in Subsection (2) and in Subsection 61-2b-6 (2), it is unlawful
             646      for anyone to prepare, for valuable consideration, an appraisal, an appraisal report, a certified
             647      appraisal report, or perform a consultation service relating to real estate or real property in this



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             648
     state without first being [registered,] licensed[,] or certified in accordance with [the provisions
             649      of] this chapter.
             650          (2) This section does not apply to:
             651          (a) a real estate broker or sales agent as defined by Section 61-2-2 licensed by this state
             652      who, in the ordinary course of [his] the real estate broker's or sales agent's business, gives an
             653      opinion:
             654          (i) regarding the value of real estate;
             655          (ii) to a potential seller or third party recommending a listing price of real estate; or
             656          (iii) to a potential buyer or third party recommending a purchase price of real estate;
             657          (b) an employee of a company who states an opinion of value or prepares a report
             658      containing value conclusions relating to real estate or real property solely for the company's
             659      use;
             660          (c) any official or employee of a government agency while acting solely within the
             661      scope of [his] the official's or employee's duties, unless otherwise required by Utah law;
             662          (d) an auditor or accountant who states an opinion of value or prepares a report
             663      containing value conclusions relating to real estate or real property while performing an audit;
             664          (e) an individual, except an individual who is required to be [registered,] licensed[,] or
             665      certified under this chapter, who states an opinion about the value of property in which [he] the
             666      person has an ownership interest;
             667          (f) an individual who states an opinion of value if no consideration is paid or agreed to
             668      be paid for the opinion and no other party is reasonably expected to rely on the individual's
             669      appraisal expertise;
             670          (g) an individual, such as a researcher or a secretary, who does not render significant
             671      professional assistance, as defined by the board, in arriving at a real estate appraisal analysis,
             672      opinion, or conclusion; or
             673          (h) an attorney authorized to practice law in this state who, in the course of [his] the
             674      attorney's practice, [utilizes] uses an appraisal report governed by this chapter or who states an
             675      opinion of the value of real estate.
             676          (3) [No] An opinion of value or report containing value conclusions exempt under
             677      Subsection (2) may not be referred to as an appraisal.
             678          Section 9. Section 61-2b-6 is amended to read:



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             679
          61-2b-6. Duties and powers of division.
             680          (1) The division shall have the [following] powers and duties[:] listed in this
             681      Subsection (1).
             682          (a) The division shall:
             683          (i) receive applications for licensing [as a state-licensed appraiser] and certification;
             684          (ii) establish appropriate administrative procedures for the processing of [licensing]
             685      applications for licensure or certification;
             686          (iii) issue licenses and certifications to qualified applicants pursuant to [the provisions
             687      of] this chapter; and
             688          (iv) maintain a registry of the names and addresses of individuals who are currently
             689      licensed [as state-licensed] or certified as appraisers under this chapter.
             690          [(b) The division shall:]
             691          [(i) receive applications for certification as a state-certified general appraiser or
             692      state-certified residential appraiser under this chapter;]
             693          [(ii) establish appropriate administrative procedures for the processing of certification
             694      applications;]
             695          [(iii) issue certificates to qualified applicants pursuant to the provisions of this chapter;
             696      and]
             697          [(iv) maintain a registry of the names and addresses of individuals who are currently
             698      registered, licensed, or certified under this chapter.]
             699          (b) (i) The division shall require a trainee to notify the division that the trainee is acting
             700      in the capacity of a trainee earning experience for licensure.
             701          (ii) The board shall adopt rules in accordance with Title 63, Chapter 46a, Utah
             702      Administrative Rulemaking Act, for the trainee notification required by this Subsection (1)(b).
             703          (c) The division shall hold public hearings under the direction of the board.
             704          (d) [(i)] The division [shall, at its option,] may:
             705          (i) solicit bids and enter into contracts with one or more educational testing services or
             706      organizations for the preparation of a bank of questions and answers approved by the board for
             707      licensing and certification examinations; and
             708          (ii) administer or contract for the administration of licensing and certification
             709      examinations as may be required to carry out [its] the division's responsibilities under this



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             710
     chapter.
             711          (e) The division shall provide administrative assistance to the board by providing to the
             712      board the facilities, equipment, supplies, and personnel that are required to enable the board to
             713      carry out [its] the board's responsibilities under this chapter.
             714          (f) The division shall assist the board in upgrading and improving the quality of the
             715      education and examinations required under this chapter.
             716          (g) The division shall assist the board in improving the quality of the continuing
             717      education available to persons [registered,] licensed[,] and certified under this chapter.
             718          (h) The division shall assist the board with respect to the proper interpretation or
             719      explanation of the Uniform Standards of Professional Appraisal Practice as required by Section
             720      61-2b-27 when an interpretation or explanation becomes necessary in the enforcement of this
             721      chapter.
             722          (i) The division shall [collect all registration, licensing, and certification fees] establish
             723      fees in accordance with Section 63-38-3.2 :
             724          (i) for processing:
             725          (A) trainee notifications;
             726          (B) applications for licensing and certification; and
             727          (C) registration of expert witnesses; and
             728          (ii) for all other functions required or permitted by this chapter.
             729          (j) The division may:
             730          (i) investigate complaints against:
             731          (A) trainees; or
             732          (B) persons [registered,] licensed[,] or certified under this chapter;
             733          (ii) subpoena witnesses and the production of books, documents, records, and other
             734      papers;
             735          (iii) administer oaths; and
             736          (iv) take testimony and receive evidence concerning all matters within [its] the
             737      division's jurisdiction.
             738          (k) The division may promote research and conduct studies relating to the profession of
             739      real estate appraising and sponsor real estate appraisal educational activities.
             740          (l) The division shall adopt, with the concurrence of the board, rules for the



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             741
     administration of this chapter pursuant to Title 63, Chapter 46a, Utah Administrative
             742      Rulemaking Act, that are not inconsistent with [the provisions of] this chapter or the
             743      constitution and laws of this state or of the United States.
             744          (m) The division shall employ an appropriate staff to investigate allegations that
             745      persons [registered,] licensed[,] or certified under this chapter failed to comply with [the terms
             746      and provisions of] this chapter.
             747          (n) The division may employ such other professional, clerical, and technical staff as
             748      may be necessary to properly administer the work of the division under this chapter.
             749          (o) The division may make available, at a reasonable cost determined by the division, a
             750      list of the names and addresses of all persons licensed or certified by the division under this
             751      chapter to the extent the information is a public record under Title 63, Chapter 2, Government
             752      Records Access and Management Act.
             753          (2) (a) The division shall register expert witnesses who are not otherwise [registered,]
             754      licensed[,] or certified under this chapter to appear in all administrative and judicial tax
             755      proceedings to provide evidence related to the valuation of real property that is assessed by the
             756      tax commission, provided that the:
             757          (i) registration is limited to a specific proceeding;
             758          (ii) registration is valid until the proceeding becomes final;
             759          (iii) applicant pays a registration fee to the division;
             760          (iv) applicant provides the applicant's name, address, occupation, and professional
             761      credentials; and
             762          (v) applicant provides a notarized statement that:
             763          (A) the applicant is competent to render an appraisal and to testify as an expert witness
             764      in the proceeding; and
             765          (B) the appraisal and testimony to be offered shall be in accordance with the Uniform
             766      Standards of Professional Appraisal Practice adopted by the board.
             767          (b) [The provisions of] Subsection (2)(a) shall be effective for all administrative and
             768      judicial property tax proceedings related to the valuation of real property that is assessed by the
             769      tax commission, including those filed but which are not final as of May 3, 1994.
             770          (3) The division shall be immune from any civil action or criminal prosecution for
             771      initiating or assisting in any lawful investigation of the actions of or participating in any



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             772
     disciplinary proceeding concerning a trainee or a person [registered,] licensed, [or] certified, or
             773      registered as an expert witness pursuant to this chapter if the action is taken without malicious
             774      intent and in the reasonable belief that the action was taken pursuant to the powers and duties
             775      vested in the members of the division under this chapter.
             776          Section 10. Section 61-2b-7 is amended to read:
             777           61-2b-7. Board established -- Composition -- Qualifications -- Meeting -- Chair --
             778      Terms of office -- Expenses -- Quorum.
             779          (1) (a) There is established a Real Estate Appraiser Licensing and Certification Board
             780      which shall consist of [seven] five regular members as follows:
             781          (i) one state-licensed or state-certified appraiser who may be either a residential or
             782      general licensee or certificate holder;
             783          (ii) [three] one state-certified [appraisers] residential appraiser;
             784          (iii) one state-certified general appraiser;
             785          (iv) one member who is certified as either a state-certified residential appraiser or a
             786      state-certified general appraiser; and
             787          [(iii)] (v) [two members] one member of the general public[; and].
             788          [(iv) the Commissioner of the Department of Financial Institutions or his designee.]
             789          (b) The term of the longest serving general public member of the board as of May 2,
             790      2005 terminates May 2, 2005.
             791          (c) A state-licensed or state-certified appraiser may be appointed as an alternate
             792      member of the board.
             793          [(b) All] (d) The governor shall appoint all members of the board [shall be appointed
             794      by the governor] with the consent of the Senate.
             795          (2) (a) Except as required by Subsection (2)(b), as terms of current board members
             796      expire, the governor shall appoint each new member or reappointed member to a four-year
             797      term beginning on July 1.
             798          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
             799      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             800      board members are staggered so that approximately half of the board is appointed every two
             801      years.
             802          (c) Upon the expiration of [his] a member's term, a member of the board shall continue



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             803
     to hold office until the appointment and qualification of [his] the member's successor.
             804          (d) [No] A person may not serve as a member of the board for more than two
             805      consecutive terms.
             806          (3) (a) When a vacancy occurs in the membership for any reason, the replacement shall
             807      be appointed for the unexpired term.
             808          (b) The governor may remove a board member for cause.
             809          (4) The public [members] member of the board may not be licensed or certified under
             810      this chapter.
             811          (5) The board shall meet at least quarterly to conduct its business. Public notice shall
             812      be given for all board meetings.
             813          (6) The members of the board shall elect a chair annually from among the members to
             814      preside at board meetings. [A quorum of the board shall be four members.]
             815          (7) (a) [(i) Members] A member who [are] is not a government [employees] employee
             816      shall receive no compensation or benefits for [their] the member's services, but may receive per
             817      diem and expenses incurred in the performance of the member's official duties at the rates
             818      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             819          [(ii) Members] (b) A member may decline to receive per diem and expenses for [their]
             820      the member's service.
             821          [(b) (i) State government officer and employee members who do not receive salary, per
             822      diem, or expenses from their agency for their service may receive per diem and expenses
             823      incurred in the performance of their official duties from the commission at the rates established
             824      by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .]
             825          [(ii) State government officer and employee members may decline to receive per diem
             826      and expenses for their service.]
             827          (8) (a) Three members of the board shall constitute a quorum for the transaction of
             828      business.
             829          (b) If a quorum of members is unavailable for any meeting, the alternate member of the
             830      board, if any, shall serve as a regular member of the board for that meeting if with the presence
             831      of the alternate member a quorum is present at the meeting.
             832          Section 11. Section 61-2b-8 is amended to read:
             833           61-2b-8. Duties of board.



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             834
         The board shall provide technical assistance to the division relating to real estate
             835      appraisal standards and real estate appraiser qualifications and shall have the [following]
             836      responsibilities, powers, and duties[:] listed in this section.
             837          (1) The board shall:
             838          (a) determine the experience, education, and examination requirements appropriate for
             839      persons [registered or] licensed under this chapter;
             840          (b) determine the experience, education, and examination requirements appropriate for
             841      persons certified under this chapter in compliance with the minimum requirements of Financial
             842      Institutions Reform, Recovery, and Enforcement Act of 1989, and consistent with the intent of
             843      this chapter; [and]
             844          (c) determine the appraisal related acts that may be performed by:
             845          (i) a trainee on the basis of the trainee's education and experience;
             846          (ii) clerical staff; and
             847          (iii) a person who:
             848          (A) does not hold a license or certification; and
             849          (B) assists appraisers licensed or certified under this chapter in providing appraisal
             850      services or consultation services;
             851          (d) determine the procedures for a trainee notifying the division that the trainee will
             852      assist persons licensed or certified under this chapter in providing appraisal services or
             853      consultation services; and
             854          [(c)] (e) develop programs to upgrade and improve the experience, education, and
             855      examinations as required under this chapter.
             856          (2) (a) The experience, education, and examination requirements established by the
             857      board for persons licensed or certified under this chapter shall be the minimum criteria
             858      established by the Appraiser Qualification Board of the Appraisal Foundation, unless, after
             859      notice and a public hearing held in accordance with [the provisions of] Title 63, Chapter 46a,
             860      Utah Administrative Rulemaking Act, the board [has found] finds that the minimum criteria
             861      are not appropriate for state-licensed appraisers or state-certified appraisers in this state [in
             862      which case the board].
             863          (b) If under Subsection (2)(a) the board makes a finding that the minimum criteria are
             864      not appropriate, the board shall recommend appropriate criteria to the Legislature.



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             865
         (3) The board shall:
             866          (a) determine the continuing education requirements appropriate for the renewal of
             867      licenses and certifications issued under this chapter[,];
             868          (b) develop programs to upgrade and improve continuing education[,]; and
             869          (c) recommend to the division available continuing education courses that meet the
             870      requirements of this chapter.
             871          (4) (a) The board shall consider the proper interpretation or explanation of the Uniform
             872      Standards of Professional Appraisal Practice as required by Section 61-2b-27 when:
             873          (i) an interpretation or explanation becomes necessary in the enforcement of this
             874      chapter[, and when]; and
             875          (ii) the Appraisal Standards Board of the Appraisal Foundation has not as yet issued
             876      an interpretation or explanation[, and].
             877          (b) If the conditions of Subsection (4)(a) are met, the board shall recommend to the
             878      division the appropriate interpretation or explanation that the division should adopt as a rule
             879      under this chapter.
             880          (5) The board shall develop and establish or approve the examination specifications
             881      and the minimum score required to pass the examinations for licensure and certification.
             882          (6) The board shall review the:
             883          (a) bank of questions and answers that comprise the examination for persons licensed
             884      and certified under this chapter;
             885          (b) procedure that is established for selecting individual questions from the bank of
             886      questions for use in each scheduled examination; and
             887          (c) questions in the bank of questions and the related answers to determine whether
             888      they meet the examination specifications established by the board.
             889          (7) (a) The board shall conduct administrative hearings, not delegated by the board to
             890      an administrative law judge, in connection with all disciplinary proceedings under Sections
             891      61-2b-30 and 61-2b-31 concerning [persons registered,]:
             892          (i) a person licensed[,] or certified under this chapter; and [their]
             893          (ii) the person's failure to comply with [the provisions of] this chapter and the Uniform
             894      Standards of Professional Appraisal Practice as adopted under Section 61-2b-27 .
             895          (b) The board shall issue in each administrative hearing a decision that contains



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             896
     findings of fact and conclusions of law.
             897          (c) When a determination is made that a person [registered,] licensed[,] or certified
             898      under this chapter has violated any provision of this chapter, the division shall implement
             899      disciplinary action determined by the board.
             900          (8) The members of the board shall be immune from any civil action or criminal
             901      prosecution for any disciplinary proceeding concerning a person registered, licensed, or
             902      certified under this chapter if the action is taken without malicious intent and in the reasonable
             903      belief that the action taken was taken pursuant to the powers and duties vested in the members
             904      of the board under this chapter.
             905          (9) The board shall require and pass upon proof necessary to determine the honesty,
             906      competency, integrity, and truthfulness of each applicant for original or renewal [registration,]
             907      licensure[,] or certification.
             908          Section 12. Section 61-2b-9 is amended to read:
             909           61-2b-9. Licensure or certification required -- Application.
             910          [Any] Except as provided in Subsections 61-2b-3 (2) and 61-2b-6 (2), any individual
             911      who prepares or causes to be prepared an appraisal, an appraisal report, or a certified appraisal
             912      report in this state, in order to lawfully engage in such activity in this state, shall:
             913          (1) make application in writing for [registration,] licensure[,] or certification as
             914      provided in this chapter in the form as the division may prescribe; and
             915          (2) become [registered,] licensed[,] or certified under this chapter.
             916          Section 13. Section 61-2b-10 is amended to read:
             917           61-2b-10. State-licensed appraiser -- Authority and qualifications.
             918          (1) A state-licensed appraiser is authorized to appraise complex and noncomplex 1-4
             919      family residential units in this state having a transaction value permitted under the Financial
             920      Institutions Reform, Recovery, and Enforcement Act of 1989, and related federal regulations.
             921          (2) A state-licensed appraiser is [also] authorized to appraise vacant or unimproved
             922      land having a transaction value permitted under the Financial Institutions Reform, Recovery,
             923      and Enforcement Act of 1989, and related federal regulations that is utilized for 1-4 family
             924      purposes or for which the highest and best use is 1-4 family purposes and subdivisions for
             925      which a development analysis/appraisal is not necessary.
             926          (3) A state-licensed appraiser may not issue a certified appraisal report.



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             927
         (4) To qualify as a state-licensed appraiser, an applicant must:
             928          (a) be of good moral character;
             929          (b) pass the licensing examination with a satisfactory score as determined by the board;
             930          (c) successfully complete not less than [90] 150 classroom hours in courses of study
             931      approved by the board that relate to:
             932          (i) real estate appraisal;
             933          (ii) the Uniform Standards of Professional Appraisal Practice; and
             934          (iii) ethical rules to be observed by a real estate appraiser as required by Section
             935      61-2b-27 ; and
             936          (d) possess the minimum number of hours of experience in real property appraisal as
             937      established by rule.
             938          (5) The courses of study under Subsection (4)(c) shall be conducted by:
             939          [(a) an accredited university, college, or junior college;]
             940          [(b) an approved appraisal society, institute, or association; or]
             941          [(c) such other school as the board may approve.]
             942          (a) a college or university;
             943          (b) a community or junior college;
             944          (c) a real estate appraisal or real estate related organization;
             945          (d) a state or federal agency or commission;
             946          (e) a proprietary school;
             947          (f) a provider approved by a state certification and licensing agency; or
             948          (g) the Appraisal Foundation or its boards.
             949          (6) The board shall require and pass upon proof necessary to determine the honesty,
             950      competency, integrity, and truthfulness of each applicant.
             951          Section 14. Section 61-2b-14 is amended to read:
             952           61-2b-14. State-certified residential appraiser -- Application.
             953          (1) Each applicant for certification as a residential appraiser shall provide to the
             954      division evidence:
             955          (a) of completion of the certification examination with a satisfactory score as
             956      determined by the board;
             957          [(b) of satisfactory completion of not less than 120 classroom hours of education or



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             958
     their equivalent as required under this chapter;]
             959          [(c) that the applicant possesses]
             960          (b) (i) of an associate degree or higher degree from an accredited:
             961          (A) college;
             962          (B) junior college;
             963          (C) community college; or
             964          (D) university; or
             965          (ii) of successfully passing a curriculum determined by rule of collegiate level subject
             966      matter courses from an accredited:
             967          (A) college;
             968          (B) junior college;
             969          (C) community college; or
             970          (D) university;
             971          (c) of satisfactory completion of not less than 200 classroom hours in a curriculum:
             972          (i) of specific appraisal education determined by rule made by the board; and
             973          (ii) that includes a course in the Uniform Standards of Professional Practice or its
             974      equivalent that has been approved by the Appraisal Qualifications Board of the federal
             975      Appraisal Foundation authorized by Title XI of the Financial Institutions Reform, Recovery,
             976      and Enforcement Act of 1989;
             977          (d) of the minimum number of hours of experience in real property appraisal as
             978      established by rule; and
             979          [(d)] (e) that the experience required under Subsection (1)[(c)](d)[, or the equivalent,]
             980      was acquired within a reasonable period, as determined by [the board] rule, immediately
             981      preceding the filing of the application for certification.
             982          (2) Upon request by the division, the applicant shall [also] make available to the
             983      division for examination[,]:
             984          (a) a detailed listing of the real estate appraisal reports[,] or file memoranda for each
             985      year for which experience is claimed [and a sample of appraisal reports which the applicant has
             986      prepared in the course of his appraisal practice.]; and
             987          [(3) (a) To meet the 120 classroom hours required by Subsection (1)(b), an applicant
             988      must successfully complete courses of study approved by the board which relate to real estate



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             989
     appraisal theory and practice, including a course of study approved by the board which relates
             990      specifically to the Uniform Standards of Professional Appraisal Practice adopted under Section
             991      61-2b-27 , to the ethical rules to be observed by a real estate appraiser, and to the provisions of
             992      this chapter.]
             993          [(b) The courses of study referred to in Subsection (3)(a) must be conducted by:]
             994          [(i) an accredited university, college, or junior college;]
             995          [(ii) an approved appraisal society, institute, or association; or]
             996          [(iii) such other school as may be approved by the board.]
             997          (b) a sample selected by the division of appraisal reports that the applicant has prepared
             998      in the course of the applicant's appraisal practice.
             999          (3) The classroom hours required by Subsection (1)(c) shall be provided by:
             1000          (a) a college or university;
             1001          (b) a community or junior college;
             1002          (c) a real estate appraisal or real estate related organization;
             1003          (d) a state or federal agency or commission;
             1004          (e) a proprietary school;
             1005          (f) a provider approved by a state certification and licensing agency; or
             1006          (g) the Appraisal Foundation or its boards.
             1007          Section 15. Section 61-2b-15 is amended to read:
             1008           61-2b-15. State-certified general appraiser -- Application -- Qualifications.
             1009          (1) Each applicant for certification as a general appraiser shall provide to the division
             1010      evidence:
             1011          (a) of completion of the certification examination with a satisfactory score as
             1012      determined by the board;
             1013          [(b) of satisfactory completion of not less than 180 classroom hours of education or
             1014      their equivalent as required under this chapter;]
             1015          [(c) that the applicant possesses]
             1016          (b) (i) of a bachelors degree or higher degree from an accredited college or university;
             1017      or
             1018          (ii) of successfully passing a curriculum determined by rule of collegiate level subject
             1019      matter courses from an accredited:



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             1020
         (A) college;
             1021          (B) junior college;
             1022          (C) community college; or
             1023          (D) university;
             1024          (c) of satisfactory completion of not less than 300 classroom hours in a curriculum:
             1025          (i) of specific appraisal education determined by rule; and
             1026          (ii) that includes a course in the Uniform Standards of Professional Practice or its
             1027      equivalent that has been approved by the Appraisal Qualifications Board of the Appraisal
             1028      Foundation authorized by Title XI of the Financial Institutions Reform, Recovery, and
             1029      Enforcement Act of 1989;
             1030          (d) of the minimum number of hours of experience in real property appraisal as
             1031      established by rule; and
             1032          [(d)] (e) that the experience required under Subsection (1)[(c)](d)[, or the equivalent,
             1033      was] is acquired within a reasonable period, as determined by [the board] rule, immediately
             1034      preceding the filing of the application for certification.
             1035          [(2) To meet the 180 classroom hours required by Subsection (1)(b), an applicant must
             1036      successfully complete courses of study approved by the board which relate to real estate
             1037      appraisal theory and practice, including a course of study approved by the board which relates
             1038      specifically to the Uniform Standards of Professional Appraisal Practice adopted under Section
             1039      61-2b-27 , to the ethical rules to be observed by a real estate appraiser, and to the provisions of
             1040      this chapter.]
             1041          (2) Upon request by the division, the applicant shall make available to the division for
             1042      examination:
             1043          (a) a detailed listing of the real restate appraisal reports or file memoranda for each
             1044      year for which experience is claimed; and
             1045          (b) a sample selected by the division of appraisal reports that the applicant has prepared
             1046      in the course of the applicant's appraisal practice.
             1047          (3) The classroom hours required by Subsection (1)(c) shall be provided by:
             1048          (a) a college or university;
             1049          (b) a community or junior college;
             1050          (c) a real estate appraisal or real estate related organization;



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             1051
         (d) a state or federal agency or commission;
             1052          (e) a proprietary school;
             1053          (f) a provider approved by a state certification and licensing agency; or
             1054          (g) the Appraisal Foundation or its boards.
             1055          Section 16. Section 61-2b-17 is amended to read:
             1056           61-2b-17. State-certified and state-licensed appraisers -- Restrictions on use of
             1057      terms -- Conduct prohibited or required -- Trainee.
             1058          (1) (a) The terms "state-certified general appraiser," "state-certified residential
             1059      appraiser," and "state-licensed appraiser[,]" ["state-registered appraiser," and "senior
             1060      appraiser"]:
             1061          (i) may only be used to refer to an individual who is certified[,] or licensed[, or
             1062      registered] under this chapter; and
             1063          (ii) may not be used following, or immediately in connection with, the name or
             1064      signature of a firm, partnership, corporation, or group, or in any manner that it might be
             1065      interpreted as referring to a firm, partnership, corporation, group, or to anyone other than the
             1066      individual who is certified[, registered,] or licensed under this chapter.
             1067          (b) [This] The requirement [shall] of this Subsection (1) may not be construed to
             1068      prevent a state-certified general appraiser from signing an appraisal report on behalf of a
             1069      corporation, partnership, firm, or group practice if it is clear that only the individual is certified
             1070      and that the corporation, partnership, firm, or group practice is not certified.
             1071          (c) Except as provided in Section 61-2b-25 , [no] a certificate[, registration,] or license
             1072      may not be issued under [the provisions of] this chapter to a corporation, partnership, firm, or
             1073      group.
             1074          (2) (a) [No] A person other than a state-certified general appraiser or state-certified
             1075      residential appraiser, may not assume or use any title, designation, or abbreviation likely to
             1076      create the impression of certification in this state as a real estate appraiser.
             1077          (b) [No] A person other than a state-licensed appraiser may not assume or use any title,
             1078      designation, or abbreviation likely to create the impression of licensure in this state as a real
             1079      estate appraiser.
             1080          (3) (a) Only an individual who has qualified under the certification requirements of
             1081      Sections 61-2b-14 and 61-2b-15 is authorized to prepare and sign a certified appraisal report



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             1082
     relating to real estate or real property in this state.
             1083          (b) If a certified appraisal report is prepared and signed by a state-certified residential
             1084      appraiser, the certified appraisal report shall state, immediately following the signature on the
             1085      report, "State-Certified Residential Appraiser."
             1086          (c) If a certified appraisal report is prepared and signed by a state-certified general
             1087      appraiser, the certified appraisal report shall state, immediately following the signature on the
             1088      report, "State-Certified General Appraiser."
             1089          (d) An appraisal report prepared by a state-licensed appraiser shall state, immediately
             1090      following the signature on the report, "State-Licensed Appraiser."
             1091          (e) When signing a certified appraisal report, a state-certified appraiser shall also place
             1092      on the report, immediately below [his signature, a seal on the report showing his] the
             1093      state-certified appraiser's signature the state-certified appraiser's certificate number and its
             1094      expiration date.
             1095          (f) A state-certified residential appraiser may not prepare a certified appraisal report
             1096      outside [his area of expertise] the state-certified residential appraiser's authority as defined in
             1097      Section 61-2b-13 . [However, a state-certified residential appraiser may prepare an appraisal
             1098      report for any type property for which a state-licensed appraiser is authorized to appraise under
             1099      Section 61-2b-10 .]
             1100          (g) A state-licensed appraiser [or state-registered appraiser] who assisted in the
             1101      preparation of a certified appraisal report is authorized to cosign the certified appraisal report.
             1102          (4) A person who has not qualified under either Section 61-2b-14 or 61-2b-15 may not
             1103      describe or refer to any appraisal or appraisal report relating to real estate or real property in
             1104      this state by the terms "certified appraisal" or "certified appraisal report."
             1105          (5) If a trainee assists a state-licensed appraiser or a state-certified appraiser in the
             1106      preparation of an appraisal report, the appraisal report shall disclose:
             1107          (a) the trainee's name; and
             1108          (b) the extent to which the trainee assists in the preparation of the appraisal report.
             1109          Section 17. Section 61-2b-18 is amended to read:
             1110           61-2b-18. Application for certification or licensure -- Registration as an expert
             1111      witness.
             1112          (1) [Applications for] An application for the following shall be sent to the division on



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             1113
     forms approved by the division:
             1114          (a) original certification[,] or licensure;
             1115          (b) registration as an expert witness[, or licensure]; and
             1116          (c) renewal of certification[, registration,] or licensure [shall be sent to the division on
             1117      forms approved by the division].
             1118          (2) The payment of the appropriate fee, as fixed by the division with the concurrence of
             1119      the board in accordance with Section 63-38-3.2 , must accompany [all applications] an
             1120      application for:
             1121          (a) registration as an expert witness;
             1122          (b) original certification[, registration as an expert witness,] or licensure; and
             1123          (c) renewal of certification[, registration,] or licensure.
             1124          (3) [(a)] At the time of filing an application [for original certification, registration as an
             1125      expert witness, or licensure or for renewal of certification, registration, or licensure,] described
             1126      in Subsection (1), each applicant shall:
             1127          (a) sign a pledge to comply with the Uniform Standards of Professional Appraisal
             1128      Practice and the ethical rules to be observed by an appraiser that are established under Section
             1129      61-2b-27 for certified[, registered,] or licensed appraisers or registered expert witnesses under
             1130      this chapter[.]; and
             1131          (b) [Each applicant shall also] certify that [he] the applicant understands the types of
             1132      misconduct, as set forth in this chapter, for which disciplinary proceedings may be initiated
             1133      against persons certified[, registered,] or licensed under this chapter.
             1134          Section 18. Section 61-2b-19 is amended to read:
             1135           61-2b-19. Expiration of license or certification.
             1136          (1) The initial [registration,] license[,] or certification issued under this chapter expires
             1137      on the expiration date indicated on the [registration,] license[,] or certificate.
             1138          (2) A renewal [registration,] license[,] or certification issued under this chapter expires
             1139      two years from the date of issuance [except as provided in Section 61-2b-10.5 ].
             1140          (3) The scheduled expiration date of the [registration,] license[,] or certification shall
             1141      appear on the [registration,] license[,] or certification document and no other notice of its
             1142      expiration need be given to its holder.
             1143          Section 19. Section 61-2b-20 is amended to read:



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             1144
          61-2b-20. Renewal of license or certification.
             1145          (1) To obtain a renewal of a [registration,] license[,] or certification under this chapter,
             1146      the holder of a current, valid [registration,] license[,] or certification shall, in compliance with
             1147      procedures established by the division and the board, make application and pay the prescribed
             1148      fee to the division prior to the expiration date of the [registration,] license[,] or certification
             1149      then held.
             1150          (2) The application for renewal of a [registration,] license[,] or certification shall be
             1151      accompanied by evidence in the form prescribed by the division of having completed the
             1152      continuing education requirements for renewal specified in this chapter.
             1153          (3) A [registration,] license[,] or certification expires if it is not renewed on or before
             1154      its expiration date.
             1155          (a) For a period of 30 days after the expiration date, a [registration,] license[,] or
             1156      certification may be reinstated upon:
             1157          (i) payment of a renewal fee and a late fee determined by the division and the board [in
             1158      addition to]; and
             1159          (ii) satisfying the continuing education requirements specified in Section 61-2b-40 .
             1160          (b) After the 30-day period described in Subsection (3)(a), and until six months after
             1161      the expiration date, the [registration,] license[,] or certification may be reinstated by:
             1162          (i) paying a renewal fee and a reinstatement fee determined by the division and the
             1163      board [in addition to]; and
             1164          (ii) satisfying the continuing education requirements specified in Section 61-2b-40 .
             1165          (4) A person who does not renew [his registration,] that person's license[,] or
             1166      certification within six months after the expiration date shall be relicensed or recertified as
             1167      prescribed for an original application.
             1168          Section 20. Section 61-2b-21 is amended to read:
             1169           61-2b-21. Denial of licensure or certification.
             1170          The division may, upon compliance with [the provisions of] Title 63, Chapter 46b,
             1171      Administrative Procedures Act, deny the issuance of a [registration,] license[,] or certification
             1172      to an applicant on any of the grounds enumerated in this chapter.
             1173          Section 21. Section 61-2b-22 is amended to read:
             1174           61-2b-22. Licensing, certification, or expert witness requirements for



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             1175
     nonresidents -- Temporary license or certificate -- Revocation.
             1176          (1) Each applicant for registration as an expert witness, licensure, or certification under
             1177      this chapter who is not a resident of this state shall submit with [his] the applicant's application
             1178      an irrevocable consent that service of process upon [him] the applicant may be made by
             1179      delivery of the process to the director of the division if, in an action against the applicant in a
             1180      court of this state arising out of the applicant's activities as a real estate appraiser in this state,
             1181      the plaintiff cannot, in the exercise of due diligence, obtain personal service upon the applicant.
             1182          (2) A nonresident of this state who has complied with the provisions of Subsection (1)
             1183      may obtain a registration[,] as an expert witness, a license, or a certification in this state by
             1184      complying with all of the provisions of this chapter relating to registration of expert witnesses,
             1185      licensure, or certification.
             1186          (3) A nonresident of this state who has complied with the provisions of Subsection (1)
             1187      may obtain a temporary license or certification to perform a contract relating to the appraisal of
             1188      real estate or real property in this state. To qualify for the issuance of a temporary license or
             1189      certification, an applicant must:
             1190          (a) submit an application on a form approved by the division;
             1191          (b) submit evidence that [he] the applicant is licensed or certified in the state in which
             1192      [he] the applicant primarily conducts business;
             1193          (c) certify that no formal charges alleging violation of state appraisal licensing or
             1194      certification laws have been filed against the applicant by the applicant's state of domicile; and
             1195          (d) pay an application fee in an amount established by the division with the
             1196      concurrence of the board.
             1197          (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1198      division, with the concurrence of the board, shall make rules establishing the duration of a
             1199      temporary permit and procedures for renewal of a temporary permit.
             1200          (5) A temporary permit issued under this section shall be immediately and
             1201      automatically revoked if the appraiser's license or certification is suspended or revoked in the
             1202      appraiser's state of domicile.
             1203          (6) Any person whose license or certification has been revoked under Subsection (5) is
             1204      entitled to a postrevocation hearing to challenge the revocation. The hearing shall be
             1205      conducted in accordance with Title 63, Chapter 46b, Administrative Procedures Act.



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             1206
         Section 22. Section 61-2b-24 is amended to read:
             1207           61-2b-24. Expert witness, licensing, or certification documents -- Assigned
             1208      number to be used on contracts -- Surrender of documents upon suspension.
             1209          (1) The division shall issue to each person registered as an expert witness, licensed, or
             1210      certified under this chapter a document:
             1211          (a) stating that the person [has been] is registered as an expert witness, licensed, or
             1212      certified under this chapter; and
             1213          (b) specifying the expiration date of the [registration,] license[,] or certification.
             1214          (2) (a) A registration[,] as an expert witness, a license, or a certification document
             1215      issued under this chapter shall bear a registration, license, or certification number assigned by
             1216      the division.
             1217          (b) The assigned number shall be used in all statements of qualification, contracts, or
             1218      other instruments used by the registration, license, or certificate holder when reference is made
             1219      to his status as being registered, licensed, or certified under this chapter.
             1220          (3) (a) [Registration, licensing, and certification] Licensing, certification, and expert
             1221      witness registration documents remain the property of the state.
             1222          (b) Upon any suspension or revocation of a [registration,] license[,] or certification
             1223      under this chapter, the individual holding the respective documents shall immediately return
             1224      the document to the division[, together with any stamps or seals used for certified appraisal
             1225      reports].
             1226          [(4) The division shall maintain and keep open for public inspection during office
             1227      hours a complete and properly indexed record of all registration, licensing, and certification
             1228      documents issued, registrations, licenses, and certifications renewed, and registrations,
             1229      licenses, and certifications revoked, cancelled, or suspended under the provisions of this
             1230      chapter. A copy of any such record shall be made available to the public, upon application to
             1231      the division, at a price per copy as fixed by the division.]
             1232          Section 23. Section 61-2b-26 is amended to read:
             1233           61-2b-26. Principal place of business -- Display of documents -- Notify of changes
             1234      -- Nonresidents.
             1235          (1) Each person [registered,] licensed[,] or certified under this chapter shall designate
             1236      and maintain a principal place of business and shall conspicuously display [his registration,]



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             1237
     the person's license[,] or certification.
             1238          (2) (a) Upon any change of [his] a person's principal business location or home
             1239      address, a person [registered,] licensed[,] or certified under this chapter shall promptly send the
             1240      division a signed statement notifying the division of any change within ten business days of the
             1241      change.
             1242          (b) Upon any change of an expert witness's address listed on the expert witness's
             1243      registration application, the expert witness shall promptly send the division a signed statement
             1244      notifying the division of any change within ten business days of the change.
             1245          (3) A nonresident [registrant, licensee, or certificate holder] licensee or certificate
             1246      holder, or a nonresident registered as an expert witness is not required to maintain a place of
             1247      business in this state if [he] the nonresident maintains an active place of business in [his] the
             1248      nonresident's state of domicile.
             1249          Section 24. Section 61-2b-27 is amended to read:
             1250           61-2b-27. Professional conduct -- Uniform standards.
             1251          (1) (a) Each person [registered,] licensed, [or] certified, or registered as an expert
             1252      witness under this chapter must comply with generally accepted standards of professional
             1253      appraisal practice and generally accepted ethical rules to be observed by a real estate appraiser.
             1254          (b) Generally accepted standards of professional appraisal practice are [currently]
             1255      evidenced by the Uniform Standards of Professional Appraisal Practice promulgated by the
             1256      Appraisal Foundation.
             1257          (c) After a public hearing held in accordance with [the provisions of] Title 63, Chapter
             1258      46a, Utah Administrative Rulemaking Act, the board shall adopt and may make modifications
             1259      of or additions to the Uniform Standards of Professional Appraisal Practice as the board
             1260      considers appropriate to comply with the Financial Institutions Reform, Recovery, and
             1261      Enforcement Act of 1989.
             1262          (2) If the Appraisal Standards Board of the Appraisal Foundation modifies the Uniform
             1263      Standards of Professional Appraisal Practice, issues supplemental appraisal standards which it
             1264      considers appropriate for residential real estate appraisers or for general real estate appraisers,
             1265      or issues ethical rules to be observed by a real estate appraiser and requests the board to
             1266      consider the adoption of the modified or supplemental standards or ethical rules, the board
             1267      shall schedule a public hearing pursuant to [the provisions of] Title 63, Chapter 46a, Utah



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             1268
     Administrative Rulemaking Act, for the purpose of deciding whether or not [it] the board
             1269      should require the modified or supplemental standards or the ethical rules to be observed by
             1270      persons [registered,] licensed, [or] certified, or registered as an expert witness under this
             1271      chapter.
             1272          (3) If, after the notice and public hearing, the board finds that the modified or
             1273      supplemental standards or the ethical rules issued by the Appraisal Standards Board of the
             1274      Appraisal Foundation are appropriate for persons [registered,] licensed, [or] certified, or
             1275      registered as an expert witness under this chapter, the board shall recommend rules requiring
             1276      all persons [registered,] licensed, [or] certified, or registered as an expert witness under this
             1277      chapter to observe the modified or supplemental standards or the ethical rules.
             1278          [(4) A copy of each such rule adopted by the division shall be sent to the business
             1279      address of each person currently registered, licensed, or certified under this chapter.]
             1280          Section 25. Section 61-2b-28 is amended to read:
             1281           61-2b-28. Enforcement -- Investigation -- Orders -- Hearings.
             1282          (1) The division may investigate the actions of any person [registered,] licensed[,] or
             1283      certified under this chapter, [or] an applicant for [registration,] licensure[,] or certification, or
             1284      an applicant for renewal of licensure or certification, and may initiate an agency action in
             1285      accordance with Title 63, Chapter 46b, Administrative Procedures Act, to:
             1286          (a) impose disciplinary action on a person [registered,] licensed[,] or certified under
             1287      this chapter; or [to]
             1288          (b) deny issuance to an applicant of an original or renewal [registration,] license[,] or
             1289      certification.
             1290          (2) (a) The division may subpoena witnesses, take evidence, and require by subpoena
             1291      duces tecum the production of books, papers, contracts, records, other documents, or
             1292      information relevant to the investigation described in Subsection (1).
             1293          (b) The division may serve subpoenas by certified mail.
             1294          (c) Each failure to respond to a subpoena by a person [registered,] licensed[,] or
             1295      certified under this chapter is considered to be a separate violation of this chapter.
             1296          (3) (a) If the director has reason to believe that any person has been or is engaging in
             1297      acts constituting violations of this chapter, and if it appears to the director that it would be in
             1298      the public interest to stop these acts, [he] the director shall issue and serve upon the person an



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             1299
     order directing that person to cease and desist from those acts.
             1300          (b) Within ten days after receiving the order, the person upon whom the order is served
             1301      may request an adjudicative proceeding.
             1302          (c) Pending the hearing, the cease and desist order shall remain in effect.
             1303          (d) If a request for hearing is made, the division shall follow the procedures and
             1304      requirements of Title 63, Chapter 46b, Administrative Procedures Act.
             1305          (4) (a) After the hearing, if the board agrees that the acts of the person violate this
             1306      chapter, the board shall issue an order making the cease and desist order permanent.
             1307          (b) If no hearing is requested and if the person fails to cease the acts, or after
             1308      discontinuing the acts, again commences the acts, the director shall commence an action in the
             1309      name of the Department of Commerce and Division of Real Estate, in the district court in the
             1310      county in which the acts occurred or where the person resides or carries on business, to enjoin
             1311      and restrain the person from violating this chapter.
             1312          (5) The remedies and action provided in this section do not limit, interfere with, or
             1313      prevent the prosecution of any other remedies or actions including criminal proceedings.
             1314          Section 26. Section 61-2b-29 is amended to read:
             1315           61-2b-29. Disciplinary action -- Grounds.
             1316          (1) The board may order disciplinary action against any person [registered,] licensed[,]
             1317      or certified under this chapter. [Board] On the basis of any of the grounds listed in Subsection
             1318      (2) for disciplinary action, board action may include:
             1319          (a) revoking, suspending, or placing a person's [registration,] license[,] or certification
             1320      on probation[,];
             1321          (b) denying a person's original or renewal [registration,] license[,] or certification[,];
             1322          (c) ordering remedial education[,]; and
             1323          (d) imposing a civil penalty upon a person not to exceed $1,000 per violation [based on
             1324      any of the following grounds for disciplinary action:].
             1325          [(1)]     (2) The following are grounds for disciplinary action under this section:
             1326          (a) procuring or attempting to procure a [registration,] license[,] or certification under
             1327      this chapter by fraud or by making a false statement, submitting false information, or making a
             1328      material misrepresentation in an application filed with the division;
             1329          [(2)] (b) paying money or attempting to pay money other than the fees provided for by



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             1330
     this chapter to any member or employee of the division to procure a [registration,] license[,] or
             1331      certification under this chapter;
             1332          [(3)] (c) an act or omission in the practice of real estate appraising [which] that
             1333      constitutes dishonesty, fraud, or misrepresentation;
             1334          [(4)] (d) entry of a judgment against a [registrant,] licensee[,] or certificate holder on
             1335      grounds of fraud, misrepresentation, or deceit in the making of an appraisal of real estate;
             1336          [(5)] (e) a guilty plea to a criminal offense involving moral turpitude [which] that is
             1337      held in abeyance, or a conviction, including a conviction based upon a plea of guilty or nolo
             1338      contendere, of a criminal offense involving moral turpitude;
             1339          [(6)] (f) engaging in the business of real estate appraising under an assumed or
             1340      fictitious name not properly registered in this state;
             1341          [(7)] (g) paying a finder's fee or a referral fee to a person not [registered,] licensed[,] or
             1342      certified under this chapter in connection with an appraisal of real estate or real property in this
             1343      state;
             1344          [(8)] (h) making a false or misleading statement in that portion of a written appraisal
             1345      report that deals with professional qualifications or in any testimony concerning professional
             1346      qualifications;
             1347          [(9)] (i) violating or disregarding any provision of this chapter, an order of the board, or
             1348      any rule issued under this chapter;
             1349          [(10)] (j) violation of the confidential nature of governmental records to which a person
             1350      registered, licensed, or certified under this chapter gained access through employment or
             1351      engagement as an appraiser by a governmental agency;
             1352          [(11)] (k) acceptance of a contingent fee for performing an appraisal as defined in
             1353      Subsection 61-2b-2 (1)(a) if in fact the fee is or was contingent upon the appraiser reporting a
             1354      predetermined analysis, opinion, or conclusion or is or was contingent upon the analysis,
             1355      opinion, conclusion, or valuation reached or upon the consequences resulting from the
             1356      appraisal assignment;
             1357          [(12)] (l) unprofessional conduct as defined by statute or rule; or
             1358          [(13)] (m) any other conduct [which] that constitutes dishonest dealing.
             1359          Section 27. Section 61-2b-30.5 is amended to read:
             1360           61-2b-30.5. Reinstatement of license, certification -- Expert witness -- Trainee.



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             1361
         (1) An individual who has had an appraiser registration, license, or certification
             1362      revoked under this chapter may not apply for renewal of that registration, license, or
             1363      certification, but may apply for licensure or certification as prescribed for an original license or
             1364      certification subject to the limitations in Subsection (2).
             1365          (2) An applicant for licensure, certification, or for registration as an expert witness
             1366      under Subsection (1):
             1367          (a) may not apply for licensure or certification until at least five years after the date of
             1368      revocation of the applicant's original [registration,] license[,] or certification; and
             1369          (b) is not entitled to credit for experience gained prior to the date of revocation in
             1370      determining whether the applicant meets the experience requirement for licensure or
             1371      certification.
             1372          (3) A person whose license or certification is revoked may not act as a trainee until at
             1373      least four years after the day on which the person's license or certification is revoked.
             1374          Section 28. Section 61-2b-31 is amended to read:
             1375           61-2b-31. Disciplinary hearing process.
             1376          (1) Before disciplinary action may be taken by the board against a [registrant,]
             1377      licensee[,] or certificate holder, the division shall notify the [registrant,] licensee[,] or
             1378      certificate holder and commence an adjudicative proceeding.
             1379          (2) If, after the hearing, the board determines that the [registrant,] licensee[,] or
             1380      certificate holder has violated this chapter, the board may impose disciplinary action by written
             1381      order as provided in Section 61-2b-29 .
             1382          (3) The board may conduct hearings with the assistance of an administrative law judge
             1383      or may delegate hearings to an administrative law judge. If the hearing is delegated by the
             1384      board to an administrative law judge, the judge shall submit written findings of fact,
             1385      conclusions of law, and a recommended order to the board for its consideration.
             1386          (4) (a) Any applicant, [registrant,] licensee, certificate holder, or person aggrieved,
             1387      including the complainant, may obtain judicial review of any adverse ruling, order, or decision
             1388      of the board. Any appeal shall be governed by the Utah Rules of Appellate Procedure.
             1389          (b) If the applicant, [registrant,] licensee, or certificate holder prevails in the appeal and
             1390      the court finds that the state action was undertaken without substantial justification, the court
             1391      may award reasonable litigation expenses to the applicant, [registrant,] licensee, or certificate



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             1392
     holder as provided under Title 78, Chapter 27a, Small Business Equal Access to Justice Act.
             1393          Section 29. Section 61-2b-33 is amended to read:
             1394           61-2b-33. Criminal penalty -- Licensure or certification following conviction.
             1395          (1) Any person required by this chapter to be [registered,] licensed[,] or certified who
             1396      engages in real estate appraisal activity in this state without obtaining a [registration,] license[,]
             1397      or certification or who violates any provision of this chapter:
             1398          (a) is guilty of a class B misdemeanor punishable by a $1,000 fine and up to six months
             1399      in jail; and
             1400          (b) shall be ineligible to apply for a [registration,] license[,] or certificate for a period
             1401      of one year from the date of [his] the person's conviction of the offense.
             1402          (2) The division, in its discretion, may grant a [registration,] license[,] or certification
             1403      to a person ineligible pursuant to Subsection (1) within the one-year period upon application
             1404      and after an administrative hearing.
             1405          Section 30. Section 61-2b-34 is amended to read:
             1406           61-2b-34. Recordkeeping requirements.
             1407          (1) [All persons registered,] Subject to Subsection (2), a person licensed[,] or certified
             1408      under this chapter and a person required to be registered under this chapter before May 3, 2001,
             1409      shall retain for a period of five years the original or a true copy of:
             1410          (a) each written contract engaging [his] the person's services for real estate or real
             1411      property appraisal work;
             1412          (b) each appraisal report prepared or signed by [him] the person; and
             1413          (c) all supporting data assembled and formulated by the appraiser in preparing each
             1414      appraisal report.
             1415          (2) The five-year period for retention of records is applicable to each engagement of
             1416      the services of the appraiser and begins upon the date of the delivery of each appraisal report to
             1417      the client unless, within the five-year period, the appraiser is notified that the appraisal or the
             1418      appraisal report is involved in litigation, in which event the records must be maintained for the
             1419      longer of:
             1420          (a) five years[,]; or
             1421          (b) two years following the date of the final disposition of the litigation[, whichever is
             1422      longer].



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             1423
         (3) Upon reasonable notice, [all persons registered,] a person licensed[,] or certified
             1424      under this chapter and a person required to be registered under this chapter before May 3, 2001,
             1425      shall make all records required to be maintained under this chapter available to the division for
             1426      inspection and copying.
             1427          Section 31. Section 61-2b-36 is amended to read:
             1428           61-2b-36. Contingent fees.
             1429          (1) A person [registered,] licensed[,] or certified under this chapter who enters into an
             1430      agreement to perform an appraisal as defined in Subsection 61-2b-2 (1)(a) may not accept a
             1431      contingent fee.
             1432          (2) A person [registered,] licensed[,] or certified under this chapter who enters into an
             1433      agreement to provide consultation services as defined in Subsection
             1434      61-2b-2 [(6)(a)(i)](1)(f)(i)(A) may be paid a fixed fee or a contingent fee.
             1435          (3) (a) If a person [registered,] licensed[,] or certified under this chapter enters into an
             1436      agreement to perform consultation services for a contingent fee, this fact shall be clearly stated
             1437      in each oral statement.
             1438          (b) In addition to the requirements of Subsection (3)(a), if a person [registered,]
             1439      licensed[,] or certified under this chapter prepares a written consultation report or summary,
             1440      letter of transmittal, or certification statement for a contingent fee, the person shall clearly state
             1441      in the report, summary, letter of transmittal, or certification statement that the report is prepared
             1442      under a contingent fee arrangement.
             1443          Section 32. Section 61-2b-38 is amended to read:
             1444           61-2b-38. Division to publish roster of appraisers.
             1445          The division shall prepare and issue at least once each calendar year a roster of
             1446      appraisers containing the information required by the Federal Financial Institutions
             1447      Examination Council. [A copy of the roster shall be made available to the public, upon
             1448      application to the division, at a reasonable price per copy, as determined by the division.] The
             1449      division shall transmit the roster to the Federal Financial Institutions Examinations Council at
             1450      least annually.
             1451          Section 33. Section 61-2b-39 is amended to read:
             1452           61-2b-39. License history.
             1453          The division may, upon payment of a fee in an amount specified in rule, issue to any



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             1454
     person a verified license history [to] of:
             1455          (1) any person [registered,] licensed[,] or certified under this chapter[.]; or
             1456          (2) any person previously registered, licensed, or certified under this chapter.
             1457          Section 34. Section 61-2b-40 is amended to read:
             1458           61-2b-40. Continuing education requirements.
             1459          (1) As a prerequisite to renewal of a [registration, ] license[,] or certification, the
             1460      applicant for renewal shall present evidence satisfactory to the division of having met the
             1461      continuing education requirements of this section.
             1462          (2) For any person [registered,] licensed[,] or certified under this chapter, the
             1463      continuing education requirement for renewal of [registration,] licensure[,] or certification shall
             1464      be the completion by the applicant, during the two-year period immediately preceding the filing
             1465      of an application for renewal, of not less than 28 classroom hours of instruction in courses or
             1466      seminars that have received the approval of the board.
             1467          (3) The division may adopt rules for the implementation of [the provisions of] this
             1468      section to assure that each person renewing [his registration,] that person's license[,] or
             1469      certification under this chapter has a working knowledge of current real estate appraisal
             1470      theories, practices, and techniques that will enable the person to provide competent real estate
             1471      appraisal services to the members of the public with whom that person deals in a professional
             1472      relationship under the authority of that person's [registration,] license[,] or certificate.
             1473          (4) An amendment or repeal of a rule adopted by the division under this section shall
             1474      not operate to deprive a person of credit toward renewal of that person's [registration,]
             1475      license[,] or certification for any course of instruction that is successfully completed by the
             1476      applicant prior to the date of the amendment or repeal of the rule.
             1477          (5) In lieu of meeting the requirements set forth in Subsection (2) and applicable rules,
             1478      an applicant for renewal may satisfy all or part of the continuing education requirements by
             1479      presenting evidence of the following:
             1480          (a) completion of an educational program of study determined by the board to be
             1481      equivalent, for continuing education purposes, to courses or seminars approved by the board; or
             1482          (b) participation other than as a student in educational processes and programs
             1483      approved by the board that relate to real property appraisal theory, practices, or techniques
             1484      including teaching, program development, and preparation of textbooks, monographs, articles,



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             1485
     and other instructional materials.
             1486          (6) The board shall develop and propose to the division rules for the implementation of
             1487      [the provisions of] this section to assure that a person who renews [his registration,] that
             1488      person's license[,] or certification has a working knowledge of current real estate appraisal
             1489      theories, practices, and techniques that will enable the person to provide competent real estate
             1490      appraisal services to the members of the public with whom that person deals in a professional
             1491      relationship under the authority of that person's [registration,] license[,] or certification. These
             1492      rules shall prescribe:
             1493          (a) policies and procedures to be followed in obtaining board approval of courses of
             1494      instruction and seminars;
             1495          (b) standards, policies, and procedures to be used by the division in evaluating an
             1496      applicant's claims of equivalency; and
             1497          (c) standards, monitoring methods, and systems for recording attendance to be
             1498      employed by course and seminar sponsors as a prerequisite to division approval of courses and
             1499      seminars for credit.
             1500          (7) (a) A person whose [registration,] license[,] or certification has been revoked or
             1501      suspended as the result of a disciplinary action taken by the board may not apply for
             1502      reinstatement unless the person presents evidence of completion of the continuing education
             1503      requirement that is provided in this chapter for renewal.
             1504          (b) The continuing education required under Subsection (7)(a) shall not be imposed
             1505      upon an applicant for reinstatement who has been required by the division to successfully
             1506      complete the examination for licensure or certification required by Section 61-2b-20 as a
             1507      condition to reinstatement.
             1508          Section 35. Section 61-2c-102 is amended to read:
             1509           61-2c-102. Definitions.
             1510          (1) As used in this chapter:
             1511          [(1)] (a) "Affiliate" means an individual or an entity that directly, or indirectly through
             1512      one or more intermediaries, controls or is controlled by, or is under common control with, a
             1513      specified individual or entity.
             1514          [(2)] (b) "Applicant" means an individual or entity applying for a license under this
             1515      chapter.



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             1516
         [(3)] (c) "Associate lending manager" means a person who:
             1517          [(a)] (i) has qualified under this chapter as a principal lending manager; and
             1518          [(b)] (ii) works by or on behalf of another principal lending manager in transacting the
             1519      business of residential mortgage loans.
             1520          [(4)] (d) "Branch office" means a licensed entity's office:
             1521          [(a)] (i) for the transaction of the business of residential mortgage loans regulated
             1522      under this chapter; and
             1523          [(b)] (ii) other than the main office of the licensed entity.
             1524          [(5) (a)] (e) (i) "Business of residential mortgage loans" means for compensation to:
             1525          [(i)] (A) make or originate a residential mortgage loan;
             1526          [(ii)] (B) directly or indirectly solicit, place, or negotiate a residential mortgage loan for
             1527      another; or
             1528          [(iii)] (C) render services related to the origination [or funding] of a residential
             1529      mortgage loan including:
             1530          [(A)] (I) taking applications; and
             1531          [(B)] (II) communicating with the borrower and lender.
             1532          [(b)] (ii) "Business of residential mortgage loans" does not include:
             1533          [(i)] (A) the performance of clerical functions such as:
             1534          [(A)] (I) gathering information related to a residential mortgage loan on behalf of the
             1535      prospective borrower or a person licensed under this chapter; or
             1536          [(B)] (II) requesting or gathering information, word processing, sending
             1537      correspondence, or assembling files by an individual who works under the instruction of a
             1538      person licensed under this chapter; [or]
             1539          [(ii)] (B) ownership of an entity that engages in the business of residential mortgage
             1540      loans if the owner does not personally perform the acts listed in Subsection [(5)(a).] (1)(e)(i);
             1541          (C) acting as a loan wholesaler;
             1542          (D) acting as an account executive for a loan wholesaler;
             1543          (E) acting as a loan underwriter;
             1544          (F) acting as a loan closer; or
             1545          (G) funding a loan.
             1546          [(6)] (f) "Closed-end" means a loan with a fixed amount borrowed and which does not



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             1547
     permit additional borrowing secured by the same collateral.
             1548          [(7)] (g) "Commission" means the Residential Mortgage Regulatory Commission
             1549      created in Section 61-2c-104 .
             1550          [(8)] (h) "Compensation" means anything of economic value that is paid, loaned,
             1551      granted, given, donated, or transferred to an individual or entity for or in consideration of:
             1552          [(a)] (i) services;
             1553          [(b)] (ii) personal or real property; or
             1554          [(c)] (iii) other thing of value.
             1555          (i) "Control," as used in Subsection (1)(a), means the power to directly or indirectly:
             1556          (i) direct or exercise a controlling interest over:
             1557          (A) the management or policies of an entity; or
             1558          (B) the election of a majority of the directors, officers, managers, or managing partners
             1559      of an entity;
             1560          (ii) vote 20% or more of any class of voting securities of an entity by an individual; or
             1561          (iii) vote more than 5% of any class of voting securities of any entity by another entity.
             1562          [(9)] (j) "Control person" means an individual who is designated by an entity as the
             1563      individual who directly manages or controls the entity's transaction of the business of
             1564      residential mortgage loans secured by Utah dwellings.
             1565          [(10)] (k) "Depository institution" is as defined in Section 7-1-103 .
             1566          [(11)] (l) "Director" means the director of the division.
             1567          [(12)] (m) "Division" means the Division of Real Estate.
             1568          [(13)] (n) "Dwelling" means a residential structure attached to real property that
             1569      contains one to four units including any of the following if used as a residence:
             1570          [(a)] (i) a condominium unit;
             1571          [(b)] (ii) a cooperative unit;
             1572          [(c)] (iii) a manufactured home; or
             1573          [(d)] (iv) a house.
             1574          [(14)] (o) "Entity" means any corporation, limited liability company, partnership,
             1575      company, association, joint venture, business trust, trust, or other organization.
             1576          [(15)] (p) "Executive director" means the executive director of the Department of
             1577      Commerce.



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             1578
         [(16)] (q) "Inactive status" means a dormant status into which an unexpired license is
             1579      placed when the holder of the license is not currently engaging in the business of residential
             1580      mortgage loans.
             1581          [(17)] (r) "Lending manager" or "principal lending manager" means a person licensed
             1582      as a principal lending manager under Section 61-2c-206 .
             1583          [(18)] (s) "Licensee" means an individual or entity licensed with the division under this
             1584      chapter.
             1585          [(19) (a) ] (t) (i) Except as provided in Subsection [(19)(b)] (1)(t)(ii), "mortgage
             1586      officer" means an individual who is licensed with the division to transact the business of
             1587      residential mortgage loans through a principal lending manager.
             1588          [(b)] (ii) "Mortgage officer" does not include a principal lending manager.
             1589          [(20)] (u) "Record" means information that is:
             1590          [(a)] (i) prepared, owned, received, or retained by an individual or entity; and
             1591          [(b) (i)] (ii) (A) inscribed on a tangible medium; or
             1592          [(ii) (A)] (B) (I) stored in an electronic or other medium; and
             1593          [(B)] (II) retrievable in perceivable form.
             1594          (v) "Registration" means the permission to engage in the business of residential
             1595      mortgage loans issued by the division before January 1, 2004.
             1596          [(21)] (w) "Residential mortgage loan" means a closed-end, first mortgage loan or
             1597      extension of credit, if:
             1598          [(a)] (i) the loan or extension of credit is secured by a:
             1599          [(i)] (A) mortgage;
             1600          [(ii)] (B) deed of trust; or
             1601          [(iii)] (C) lien interest; and
             1602          [(b)] (ii) the mortgage, deed of trust, or lien interest described in Subsection [(21)(a)]
             1603      (1)(w)(i):
             1604          [(i)] (A) is on a dwelling located in the state; and
             1605          [(ii)] (B) created with the consent of the owner of the residential real property.
             1606          [(22)] (x) "State" means:
             1607          [(a)] (i) a state, territory, or possession of the United States;
             1608          [(b)] (ii) the District of Columbia; or



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             1609
         [(c)] (iii) the Commonwealth of Puerto Rico.
             1610          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             1611      meaning established by the division by rule made in accordance with Title 63, Chapter 46a,
             1612      Utah Administrative Rulemaking Act.
             1613          (b) If a term not defined in this section is not defined by rule, the term shall have the
             1614      meaning commonly accepted in the business community.
             1615          Section 36. Section 61-2c-103 is amended to read:
             1616           61-2c-103. Powers and duties of the division.
             1617          (1) The division shall administer this chapter.
             1618          (2) In addition to any power or duty expressly provided in this chapter, the division
             1619      may:
             1620          (a) receive and act on complaints including:
             1621          (i) taking action designed to obtain voluntary compliance with this chapter; or
             1622          (ii) commencing administrative or judicial proceedings on the division's own initiative;
             1623          (b) establish programs for the education of consumers with respect to residential
             1624      mortgage loans;
             1625          (c) (i) make studies appropriate to effectuate the purposes and policies of this chapter;
             1626      and
             1627          (ii) make the results of the studies described in Subsection (2)(c)(i) available to the
             1628      public;
             1629          (d) visit and investigate an entity licensed under this chapter, regardless of whether the
             1630      entity is located in Utah; and
             1631          (e) employ any necessary hearing examiners, investigators, clerks, and other employees
             1632      and agents.
             1633          (3) The division shall make rules for the administration of this chapter in accordance
             1634      with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, including:
             1635          (a) licensure procedures for:
             1636          (i) individuals and entities required by this chapter to obtain a license with the division;
             1637      and
             1638          (ii) the establishment of a branch office by an entity;
             1639          (b) proper handling of funds received by licensees;



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             1640
         (c) record-keeping requirements by licensees; and
             1641          (d) standards of conduct for licensees.
             1642          (4) [(a)] The division [shall] may make available to the public a list of the names and
             1643      mailing addresses of all licensees[.]:
             1644          (a) either directly or through a third party; and
             1645          (b) at a reasonable cost.
             1646          [(b) The division may charge a fee established by the division in accordance with
             1647      Section 63-38-3.2 for obtaining the list described in Subsection (4)(a).]
             1648          (5) The division shall:
             1649          (a) certify education providers who offer:
             1650          (i) prelicensing education to candidates for licensure under this chapter; or
             1651          (ii) continuing education to individuals licensed under this chapter; and
             1652          (b) make available to the public, licensees, and candidates for licensure a list of the
             1653      names and addresses of all education providers certified under this Subsection (5).
             1654          (6) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1655      division shall make rules establishing:
             1656          (a) certification criteria and procedures for providers of prelicensing education and
             1657      continuing education; and
             1658          (b) standards of conduct for certified education providers.
             1659          (7) The division may charge a fee established in accordance with Section 63-38-3.2 for
             1660      processing any of the changes that a licensee is required by Subsection 61-2c-205 to report to
             1661      the division.
             1662          Section 37. Section 61-2c-104 is amended to read:
             1663           61-2c-104. Residential Mortgage Regulatory Commission.
             1664          (1) (a) There is created within the division the Residential Mortgage Regulatory
             1665      Commission consisting of H. [ :
             1666          [(a)] (i)
] .H
the following members appointed by the executive director with the approval
             1667      of the governor:
             1668           H. [ [ ] (i) [ ] ] [ (A) ] [ three ] four .H members having at least three years of experience in
             1668a      transacting the
             1669      business of residential mortgage loans and who are currently licensed under this chapter; and
             1670           H. [ [ ] (ii) [ ] ] [ (B) ] .H one member from the general public; and



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             1671
          H. [ [(b)] (ii) the commissioner of the Department of Financial Institutions or the
             1672      commissioner's designee.
] .H

             1673          (b) (i) The executive director with the approval of the governor may appoint an
             1674      alternate member to the board.
             1675          (ii) The alternate member shall:
             1676          (A) at the time of the appointment, have at least three years of experience in transacting
             1677      the business of residential mortgage loans; and
             1678          (B) be licensed under this chapter at the time of and during appointment.
             1679          (2) (a) Except as required by Subsection (2)(b), the executive director shall appoint
             1680      each new member or reappointed member subject to appointment by the executive director to a
             1681      four-year term ending June 30.
             1682          (b) Notwithstanding the requirements of Subsection (2)(a), the executive director shall,
             1683      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms
             1684      of commission members are staggered so that approximately half of the commission is
             1685      appointed every two years.
             1686          (c) If a vacancy occurs in the membership of the commission for any reason, the
             1687      replacement shall be appointed for the unexpired term.
             1688          (3) Members of the commission shall annually select one member to serve as chair.
             1689          (4) (a) The commission shall meet at least quarterly.
             1690          (b) The director may call a meeting in addition to the meetings required by Subsection
             1691      (4)(a):
             1692          (i) at the discretion of the director;
             1693          (ii) at the request of the chair of the commission; or
             1694          (iii) at the written request of three or more commission members.
             1695          (5) (a) Three members of the commission constitute a quorum for the transaction of
             1696      business.
             1697          (b) If a quorum of members is unavailable for any meeting and an alternate member
             1698      has been appointed to the commission by the executive director with the approval of the
             1699      governor, the alternate member shall serve as a regular member of the commission for that
             1700      meeting if with the presence of the alternate member there is a quorum present at the meeting.
             1701          [(b)] (c) The action of a majority of a quorum present is an action of the commission.



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             1702
         (6) (a) (i) [Members] A member who [are] is not a government [employees] employee
             1703      shall receive no compensation or benefits for [their] the member's services, but may receive per
             1704      diem and expenses incurred in the performance of the member's official duties at the rates
             1705      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1706          (ii) [Members] A member who [are] is not a government [employees] employee may
             1707      decline to receive per diem and expenses for [their] the member's service.
             1708          (b) (i) [State] A state government officer and employee [members] member who [do]
             1709      does not receive salary, per diem, or expenses from [their] the member's agency for [their] the
             1710      member's service may receive per diem and expenses incurred in the performance of [their] the
             1711      member's official duties from the commission at the rates established by the Division of
             1712      Finance under Sections 63A-3-106 and 63A-3-107 .
             1713          (ii) [State] A state government officer and employee [members] member may decline
             1714      to receive per diem and expenses for [their] the member's service.
             1715          (7) The commission shall:
             1716          (a) except as provided in Subsection 61-2c-202 (2), concur in the licensure or denial of
             1717      licensure of individuals and entities under this chapter in accordance with Part 2, Licensure;
             1718          (b) take disciplinary action with the concurrence of the director in accordance with Part
             1719      4, Enforcement;
             1720          (c) advise the division concerning matters related to the administration and
             1721      enforcement of this chapter; and
             1722          (d) with the concurrence of the division, determine the requirements for:
             1723          (i) the examination required under Section 61-2c-202 , covering at least:
             1724          (A) the fundamentals of the English language;
             1725          (B) arithmetic;
             1726          (C) the provisions of this chapter;
             1727          (D) rules adopted by the division;
             1728          (E) basic residential mortgage principles and practices; and
             1729          (F) any other aspect of Utah law the commission determines is appropriate;
             1730          (ii) with the concurrence of the division, the continuing education requirements under
             1731      Section 61-2c-205 , including:
             1732          (A) except as provided in Subsection 61-2c-202 (4)(a)(i)(C) and Subsection



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             1733
     61-2c-206 (1)(c), the appropriate number of hours of prelicensing education and required
             1734      continuing education; and
             1735          (B) the subject matter of courses the division may accept for continuing education
             1736      purposes;
             1737          (iii) with the concurrence of the division, the prelicensing education required under
             1738      Sections 61-2c-202 and 61-2c-206 , including online education or distance learning options; and
             1739          (iv) the examination required under Section 61-2c-206 covering:
             1740          (A) advanced residential mortgage principles and practices; and
             1741          (B) other aspects of Utah law the commission, with the concurrence of the division,
             1742      determines appropriate.
             1743          (8) The commission may appoint a committee to make recommendations to the
             1744      commission concerning approval of prelicensing education and continuing education courses.
             1745          (9) The commission and the division shall make the examination and prelicensing
             1746      education and continuing education requirements described in this section available through
             1747      the Internet or other distance education methods approved by the commission and division
             1748      when reasonably practicable.
             1749          (10) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             1750      the commission, with the concurrence of the division, shall make rules establishing procedures
             1751      under which a licensee may be exempted from continuing education requirements:
             1752          (a) for a period not to exceed four years; and
             1753          (b) upon a finding of reasonable cause.
             1754          Section 38. Section 61-2c-106 (Superseded 01/01/06) is amended to read:
             1755           61-2c-106 (Superseded 01/01/06). Addresses provided the division.
             1756          (1) (a) In providing an address to the division under this chapter, a physical location or
             1757      street address shall be provided.
             1758          (b) The following are public information:
             1759          (i) a business address; or
             1760          (ii) a mailing address.
             1761          (2) An individual or entity licensed under this chapter will be considered to have
             1762      received any notification that is mailed to the last mailing address furnished to the division by
             1763      the individual, or by a control person of the entity, licensed under this chapter.



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             1764
         Section 39. Section 61-2c-106 (Effective 01/01/06) is amended to read:
             1765           61-2c-106 (Effective 01/01/06). Addresses provided the division.
             1766          (1) (a) In providing an address to the division under this chapter, a physical location or
             1767      street address shall be provided.
             1768          (b) The following are public information:
             1769          (i) a business address; or
             1770          (ii) a mailing address.
             1771          (2) An individual or entity licensed under this chapter will be considered to have
             1772      received any notification that is mailed to the last mailing address furnished to the division by
             1773      the individual, or by the principal lending manager of the entity, licensed under this chapter.
             1774          Section 40. Section 61-2c-201 is amended to read:
             1775           61-2c-201. Licensure required of individuals and entities engaged in the business
             1776      of residential mortgage loans -- Mortgage officer -- Principal lending manager.
             1777          (1) Unless exempt from this chapter under Section 61-2c-105 , an individual or entity
             1778      may not transact the business of residential mortgage loans, as defined in Section 61-2c-102 ,
             1779      without obtaining a license under this chapter.
             1780          (2) For purposes of this chapter, an individual or entity transacts business in this state
             1781      if:
             1782          (a) (i) the individual or entity engages in an act that constitutes the business of
             1783      residential mortgage loans; and
             1784          (ii) (A) the act described in Subsection (2)(a)(i) is directed to or received in this state;
             1785      and
             1786          (B) the real property that is the subject of the act described in Subsection (2)(a)(i) is
             1787      located in this state; or
             1788          (b) a representation is made by the individual or entity that the individual or entity
             1789      transacts the business of residential mortgage loans in this state.
             1790          (3) An individual who has an ownership interest in an entity required to be licensed
             1791      under this chapter is not required to obtain an individual license under this chapter unless the
             1792      individual transacts the business of residential mortgage loans.
             1793          (4) Unless otherwise exempted under this chapter, licensure under this chapter is
             1794      required of both:



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             1795
         (a) the individual who directly transacts the business of residential mortgage loans; and
             1796          (b) if the individual transacts business as an employee or agent of an entity or
             1797      individual, the entity or individual for whom the employee or agent transacts the business of
             1798      residential mortgage loans.
             1799          (5) (a) On or after [January] May 1, 2006, a license issued under this chapter to an
             1800      individual who has not obtained a license as a principal lending manager automatically
             1801      converts to a mortgage officer license.
             1802          (b) A mortgage officer license issued pursuant to Subsection (5)(a) shall be placed on
             1803      inactive status until the holder of the license has submitted to the division the forms required to
             1804      activate the license with a principal lending manager.
             1805          (6) (a) An individual licensed under this chapter may not engage in the business of
             1806      residential mortgage loans on behalf of more than one entity at the same time.
             1807          (b) This Subsection (6) does not restrict the number of:
             1808          (i) different lenders an individual or entity may use as a funding source for residential
             1809      mortgage loans; or
             1810          (ii) entities in which an individual may have an ownership interest, regardless of
             1811      whether the entities are:
             1812          (A) licensed under this chapter; or
             1813          (B) exempt under Section 61-2c-105 .
             1814          (7) An individual licensed under this chapter may not transact the business of
             1815      residential mortgage loans for the following at the same time:
             1816          (a) an entity licensed under this chapter; and
             1817          (b) an entity that is exempt from licensure under Section 61-2c-105 .
             1818          (8) On or after [January] May 1, 2006, except as provided under Title 16, Chapter 11,
             1819      Professional Corporation Act or under Title 48, Chapter 2c, Utah Revised Limited Liability
             1820      Company Act, a mortgage officer may not receive consideration for transacting the business of
             1821      residential mortgage loans from any person or entity except the principal lending manager with
             1822      whom the mortgage officer is licensed.
             1823          (9) On or after [January] May 1, 2006, a mortgage officer shall conduct all business of
             1824      residential mortgage loans:
             1825          (a) through the principal lending manager with which the individual is licensed; and



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             1826
         (b) in the business name under which the principal lending manager is authorized by
             1827      the division to do business.
             1828          (10) (a) (i) [If] Subject to Subsection (10)(a)(ii) and until May 1, 2006, if an individual
             1829      who is authorized by this chapter to transact the business of residential mortgage loans as an
             1830      individual transacts the business of residential mortgage loans under an assumed business
             1831      name, the individual shall:
             1832          (A) register the assumed business name with the division; and
             1833          (B) furnish to the division proof that the assumed business name has been filed with
             1834      the Division of Corporations and Commercial Code pursuant to Title 42, Chapter 2,
             1835      Conducting Business Under Assumed Name.
             1836          (ii) This Subsection (10)(a) does not apply to an individual who transacts the business
             1837      of residential mortgage loans as an employee or agent of another individual or entity.
             1838          (iii) If an entity that is authorized by this chapter to transact the business of residential
             1839      mortgage loans transacts the business of residential mortgage loans under an assumed business
             1840      name, the entity shall:
             1841          (A) register the assumed name with the division; and
             1842          (B) furnish the division proof that the assumed business name has been filed with the
             1843      Division of Corporations and Commercial Code pursuant to Title 42, Chapter 2, Conducting
             1844      Business Under Assumed Name.
             1845          (b) The division may charge a fee established in accordance with Section 63-38-3.2 for
             1846      registering an assumed name pursuant to this Subsection (10).
             1847          (11) (a) A licensee whose license is in inactive status may not transact the business of
             1848      residential mortgage loans.
             1849          (b) On or after [January] May 1, 2006, a mortgage officer whose license has been
             1850      placed in inactive status may not transact the business of residential mortgage loans until the
             1851      mortgage officer has licensed with a principal lending manager by following the procedures
             1852      established by the division by rule made in accordance with Title 63, Chapter 46a, Utah
             1853      Administrative Rulemaking Act, including submission of all required forms and payment of all
             1854      required activation fees.
             1855          (12) (a) On or after May 3, 2004 and before [January] May 1, 2006, if a licensed entity
             1856      terminates its control person, or if the control person of a licensed entity resigns, dies, or



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             1857
     becomes unable to act as control person due to disability, the entity shall cease all business of
             1858      residential mortgage loans until the entity has submitted all forms and fees to the division that
             1859      are required to affiliate another control person with the licensed entity.
             1860          (b) On or after [January] May 1, 2006, if a licensed entity terminates its principal
             1861      lending manager, or if the principal lending manager of a licensed entity resigns, dies, or
             1862      becomes unable to act as a principal lending manager due to disability, the entity may not
             1863      transact the business of residential mortgage loans until the entity has submitted all forms and
             1864      fees to the division that are required to affiliate another principal lending manager with the
             1865      entity.
             1866          Section 41. Section 61-2c-201.1 is enacted to read:
             1867          61-2c-201.1. Conversion of registrations.
             1868          On January 1, 2004, any unexpired registration authorizing an individual or entity to
             1869      engage in the business of residential mortgage loans automatically converts from a registration
             1870      to a license, retaining the expiration date of the registration as the expiration date of the
             1871      converted license.
             1872          Section 42. Section 61-2c-202 is amended to read:
             1873           61-2c-202. Licensure procedures.
             1874          (1) To apply for licensure under this chapter an applicant shall:
             1875          (a) submit to the division a licensure statement that:
             1876          (i) lists any name under which the individual or entity will transact business in this
             1877      state;
             1878          (ii) lists the address of the principal business location of the applicant;
             1879          (iii) on or after May 3, 2004 and before [January] May 1, 2006, if the applicant is an
             1880      entity:
             1881          (A) lists the control person of the applicant; and
             1882          (B) contains the signature of the control person;
             1883          (iv) on or after [January] May 1, 2006, if the applicant is an entity:
             1884          (A) lists the principal lending manager of the entity; and
             1885          (B) contains the signature of the principal lending manager;
             1886          (v) demonstrates [to the satisfaction of the division with the concurrence of the
             1887      commission] that the applicant meets the qualifications listed in Section 61-2c-203 ;



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             1888
         (vi) if the applicant is an entity, lists:
             1889          (A) all jurisdictions in which the entity is registered, licensed, or otherwise regulated in
             1890      the business of residential mortgage loans; and
             1891          (B) the history of any disciplinary action or adverse administrative action taken against
             1892      the entity by any regulatory agency within the ten years preceding the application; and
             1893          (vii) includes any information required by the division by rule;
             1894          (b) pay to the division:
             1895          (i) an application fee established by the division in accordance with Section 63-38-3.2 ;
             1896      and
             1897          (ii) the reasonable expenses incurred in processing the application for licensure
             1898      including the costs incurred by the division under Subsection (4); and
             1899          (c) comply with Subsection (4).
             1900          (2) (a) The division[, with the concurrence of the commission,] shall [grant] issue a
             1901      license to an applicant if the division, with the concurrence of the commission, finds that the
             1902      applicant:
             1903          [(a)] (i) meets the qualifications of Section 61-2c-203 ; and
             1904          [(b)] (ii) complies with this section.
             1905          (b) The commission may delegate to the division the authority to:
             1906          (i) review any class or category of application for initial or renewed licenses;
             1907          (ii) determine whether an applicant meets the licensing criteria in Section 61-2c-203 ;
             1908          (iii) conduct any necessary hearing on an application; and
             1909          (iv) approve or deny a license application without concurrence by the commission.
             1910          (c) If the commission delegates to the division the authority to approve or deny an
             1911      application without concurrence by the commission and the division denies an application for
             1912      licensure, the applicant who is denied licensure may petition the commission for review of the
             1913      denial.
             1914          (d) An applicant who is denied licensure under this Subsection (2)(b) may seek agency
             1915      review by the executive director only after the commission has reviewed the division's denial of
             1916      the applicant's application.
             1917          (3) [In] Subject to Subsection (2)(d) and in accordance with Title 63, Chapter 46b,
             1918      Administrative Procedures Act, an applicant who is denied licensure under this chapter may



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             1919
     submit a request for agency review to the executive director within 30 days following the
             1920      issuance of the commission order denying the licensure.
             1921          (4) (a) (i) An individual applying for a license under this chapter and any control
             1922      person of the applicant shall:
             1923          (A) submit a fingerprint card in a form acceptable to the division at the time the
             1924      licensure statement is filed;
             1925          (B) consent to a fingerprint background check by:
             1926          (I) the Utah Bureau of Criminal Identification; and
             1927          (II) the Federal Bureau of Investigation;
             1928          (C) on or after January 1, 2005, provide proof using methods approved by the division
             1929      of having successfully completed 20 hours of approved prelicensing education required by the
             1930      commission under Section 61-2c-104 before taking the examination required by Subsection
             1931      (4)(a)(i)(D); and
             1932          (D) provide proof using methods approved by the division of having successfully
             1933      passed an examination approved by the commission under Section 61-2c-104 .
             1934          (ii) Notwithstanding Subsections (4)(a)(i)(C) and (4)(a)(i)(D), an individual [who was
             1935      registered with the division under this chapter prior to January 1, 2004] meeting the conditions
             1936      of Subsection (4)(a)(iii) may engage in the business of residential mortgage loans until January
             1937      1, 2005 without having:
             1938          (A) completed the prelicensing education described in Subsection (4)(a)(i)(C); and
             1939          (B) passed the examination described in Subsection (4)(a)(i)(D).
             1940          (iii) Subsection (4)(a)(ii) applies to an individual:
             1941          (A) who was registered with the division under this chapter prior to January 1, 2004;
             1942          (B) whose registration was converted to a license under Section 61-2c-201.1 ; and
             1943          (C) whose converted license either:
             1944          (I) does not expire before January 1, 2005; or
             1945          (II) is renewed prior to January 1, 2005.
             1946          (b) The division shall request the Department of Public Safety to complete a Federal
             1947      Bureau of Investigation criminal background check for each applicant and each control person
             1948      of an applicant through a national criminal history system.
             1949          (c) The applicant shall pay the cost of:



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             1950
         (i) the fingerprinting required by this section; and
             1951          (ii) the background check required by this section.
             1952          (d) (i) A license under this chapter is conditional pending completion of the criminal
             1953      background check required by this Subsection (4).
             1954          (ii) If a criminal background check discloses that an applicant or an applicant's control
             1955      person failed to accurately disclose a criminal history, the license shall be immediately and
             1956      automatically revoked.
             1957          (iii) An individual or entity whose conditional license is revoked under Subsection
             1958      (4)(d)(ii) may appeal the revocation in a hearing conducted by the commission:
             1959          (A) after the revocation; and
             1960          (B) in accordance with Title 63, Chapter 46b, Administrative Procedures Act.
             1961          (iv) The commission may delegate to the division or an administrative law judge the
             1962      authority to conduct a hearing described in Subsection (4)(d)(iii).
             1963          [(iv)] (v) Relief from a revocation may be granted only if:
             1964          (A) the criminal history upon which the division based the revocation:
             1965          (I) did not occur; or
             1966          (II) [was] is the criminal history of another person;
             1967          (B) (I) the revocation [was] is based on a failure to accurately disclose a criminal
             1968      history; and
             1969          (II) the applicant had a reasonable good faith belief at the time of application that there
             1970      was no criminal history to be disclosed; or
             1971          (C) the division failed to follow the prescribed procedure for the revocation.
             1972          (e) If a revocation is upheld after a hearing described in Subsection (4)(d)(iii), the
             1973      person may not apply for a new license for a period of 12 months or longer not to exceed five
             1974      years after the revocation, as determined by the presiding officer.
             1975          (f) The funds paid by an applicant for the cost of the background check shall be
             1976      nonlapsing.
             1977          (g) The commission may delegate to the division the authority to make a decision on
             1978      whether relief from a revocation should be granted.
             1979          Section 43. Section 61-2c-203 is amended to read:
             1980           61-2c-203. Qualifications for licensure.



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             1981
         (1) To qualify for licensure under this chapter, an individual:
             1982          (a) shall have good moral character and the competency to transact the business of
             1983      residential mortgage loans;
             1984          (b) shall demonstrate honesty, integrity, and truthfulness;
             1985          [(c) may not have been convicted of a felony or misdemeanor involving moral
             1986      turpitude in the five years preceding the date the individual applies for a license, except as
             1987      provided in Subsection (3);]
             1988          (c) except as provided in Subsection (3), may not have been convicted in the ten years
             1989      preceding the day on which an application is submitted to the division of:
             1990          (i) any felony or class A misdemeanor involving moral turpitude; or
             1991          (ii) any crime in any other jurisdiction that is the equivalent of a felony or class A
             1992      misdemeanor involving moral turpitude;
             1993          (d) except as provided in Subsection (3), may not have been convicted in the five years
             1994      preceding the day on which an application is submitted to the division of:
             1995          (i) any class B or class C misdemeanor involving moral turpitude; or
             1996          (ii) any crime in another jurisdiction that is the equivalent of a class B or class C
             1997      misdemeanor involving moral turpitude;
             1998          (e) except as provided in Subsection (3), in relationship to a crime set forth in
             1999      Subsections (1)(c) and (d) during the time period set forth in Subsections (1)(c) and (d), may
             2000      not have:
             2001          (i) entered a guilty plea, a no contest plea, or its equivalent; and
             2002          (ii) resolved by diversion or its equivalent;
             2003          [(d)] (f) except as provided in Subsection 61-2c-202 (4)(e), may not have had a license
             2004      or registration suspended, revoked, surrendered, canceled, or denied in the five years preceding
             2005      the date the individual applies for licensure except as provided in Subsection (3), if:
             2006          (i) the registration or license is issued by this state or another jurisdiction; and
             2007          (ii) the suspension, revocation, surrender, probation, fine, cancellation, or denial is
             2008      based on misconduct in a professional capacity that relates to moral character, honesty,
             2009      integrity, truthfulness, or the competency to transact the business of residential mortgage loans;
             2010          [(e)] (g) except as provided in Subsection (3), may not have been the subject of a bar
             2011      by the Securities and Exchange Commission, the New York Stock Exchange, or the National



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             2012
     Association of Securities Dealers within the five years preceding the date the individual applies
             2013      for registration; and
             2014          [(f)] (h) may not have had any temporary or permanent injunction entered against the
             2015      individual:
             2016          (i) by a court or licensing agency; and
             2017          (ii) based on:
             2018          (A) conduct or a practice involving the business of residential mortgage loans; or
             2019          (B) conduct involving fraud, misrepresentation, or deceit.
             2020          (2) To qualify for licensure under this chapter an entity may not have:
             2021          (a) any of the following individuals in management who fails to meet the requirements
             2022      of Subsection (1):
             2023          (i) a manager or a managing partner;
             2024          (ii) a director;
             2025          (iii) an executive officer; or
             2026          (iv) an individual occupying a position or performing functions similar to those
             2027      described in Subsections (2)(a)(i) through (iii); or
             2028          (b) (i) before [January] May 1, 2006, a control person who fails to meet the
             2029      requirements of Subsection (1); or
             2030          (ii) on or after [January] May 1, 2006, a principal lending manager who fails to meet
             2031      the requirements of Subsection (1).
             2032          (3) Notwithstanding the failure to meet the requirements of Subsections (1)(c) through
             2033      [(f)] (h), the division may permit an individual or entity to be licensed under this chapter if the
             2034      individual applicant or a person listed in Subsection (2):
             2035          (a) fails to meet the requirements of Subsections (1)(c) through [(f)] (h);
             2036          (b) otherwise meets the qualifications for licensure; and
             2037          (c) provides evidence satisfactory to the division with the concurrence of the
             2038      commission that the individual applicant or person described in Subsection (2):
             2039          (i) is of good moral character;
             2040          (ii) is honest;
             2041          (iii) has integrity;
             2042          (iv) is truthful; and



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             2043
         (v) has the competency to transact the business of residential mortgage loans.
             2044          Section 44. Section 61-2c-205 is amended to read:
             2045           61-2c-205. Term of licensure -- Renewal -- Reporting of changes.
             2046          (1) (a) A license under this chapter is valid for a two-year period.
             2047          (b) Notwithstanding Subsection (1)(a), the time period of a license may be extended or
             2048      shortened by as much as one year to maintain or change a renewal cycle established by rule by
             2049      the division.
             2050          (2) To renew a license, no later than the date the license expires, a licensee shall:
             2051          [(a) file a licensure statement meeting the requirements of Section 61-2c-202 ;]
             2052          (a) (i) file the renewal form required by the division; and
             2053          (ii) furnish the information required by Subsection 61-2c-202 (1);
             2054          (b) pay a fee to the division established by the division in accordance with Section
             2055      63-38-3.2 ; and
             2056          (c) if the licensee is an individual and the individual's license is in active status at the
             2057      time of application for renewal, submit proof using forms approved by the division of having
             2058      completed during the two years prior to application the continuing education required by the
             2059      commission under Section 61-2c-104 .
             2060          (3) (a) A licensee under this chapter shall [amend its licensure statement filed with the
             2061      division] notify the division using the form required by the division within ten days of the date
             2062      on which there is a change in:
             2063          (i) a name under which the licensee transacts the business of residential mortgage loans
             2064      in this state;
             2065          (ii) (A) if the licensee is an entity, the business location of the licensee; or
             2066          (B) if the licensee is an individual, the home and business addresses of the individual;
             2067          (iii) (A) on or after May 3, 2004 and before [January] May 1, 2006, the control person
             2068      of the licensee; or
             2069          (B) on or after [January] May 1, 2006, the principal lending manager of the entity; [or]
             2070          (iv) the entity with which an individual licensee is licensed to conduct the business of
             2071      residential mortgage loans; or
             2072          [(iv)] (v) any other information that is defined as material by rule made by the division.
             2073          (b) Failure to notify the division of a change described in Subsection (3)(a) is separate



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             2074
     grounds for disciplinary action against a licensee.
             2075          (4) A licensee shall notify the division by sending the division a signed statement
             2076      within ten business days of:
             2077          (a) (i) a conviction of any criminal offense;
             2078          (ii) the entry of a plea in abeyance to any criminal offense; or
             2079          (iii) the potential resolution of any criminal case by:
             2080          (A) a diversion agreement; or
             2081          (B) any other agreement under which criminal charges are held in suspense for a period
             2082      of time;
             2083          (b) filing a personal bankruptcy or bankruptcy of a business that transacts the business
             2084      of residential mortgage loans;
             2085          (c) the suspension, revocation, surrender, cancellation, or denial of a professional
             2086      license or professional registration of the licensee, whether the license or registration is issued
             2087      by this state or another jurisdiction; or
             2088          (d) the entry of a cease and desist order or a temporary or permanent injunction:
             2089          (i) against the licensee by a court or licensing agency; and
             2090          (ii) based on:
             2091          (A) conduct or a practice involving the business of residential mortgage loans; or
             2092          (B) conduct involving fraud, misrepresentation, or deceit.
             2093          (5) (a) A license under this chapter expires if the licensee does not apply to renew the
             2094      license on or before the expiration date of the license.
             2095          (b) Within 30 calendar days after the expiration date, a licensee whose license has
             2096      expired may apply to reinstate the expired license upon:
             2097          (i) payment of a renewal fee and a late fee determined by the division under Section
             2098      63-38-3.2 ; and
             2099          (ii) if the licensee is an individual and is applying to reinstate a license to active status,
             2100      providing proof using forms approved by the division of having completed, during the two
             2101      years prior to application, the continuing education required by the commission under Section
             2102      61-2c-104 .
             2103          (c) After the 30 calendar days described in Subsection (5)(b) and within six months
             2104      after the expiration date, a licensee whose license has expired may apply to reinstate an expired



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             2105
     license upon:
             2106          (i) payment of a renewal fee and a late fee determined by the division under Section
             2107      63-38-3.2 ;
             2108          (ii) if the licensee is an individual and is applying to reinstate a license to active status,
             2109      providing proof using forms approved by the division of having completed, during the two
             2110      years prior to application, the continuing education required by the commission under Section
             2111      61-2c-104 ; and
             2112          (iii) in addition to the continuing education required for a timely renewal, completing
             2113      an additional 12 hours of continuing education approved by the commission under Section
             2114      61-2c-104 .
             2115          (d) A licensee whose license has been expired for more than six months shall be
             2116      relicensed as prescribed for an original application under Section 61-2c-202 .
             2117          Section 45. Section 61-2c-206 is amended to read:
             2118           61-2c-206. Lending manager licenses.
             2119          (1) Except as provided in Subsection [(3)] (2), on or after [September] January 1,
             2120      [2005] 2006, to qualify as a principal lending manager under this chapter, an individual shall,
             2121      in addition to meeting the standards in Section 61-2c-203 :
             2122          (a) submit an application on a form approved by the division;
             2123          (b) pay fees determined by the division under Section 63-38-3.2 ;
             2124          (c) submit proof of having successfully completed 40 hours of prelicensing education
             2125      approved by the commission under Section 61-2c-104 ;
             2126          (d) submit proof of having successfully completed the principal lending manager
             2127      examination approved by the commission under Section 61-2c-104 ;
             2128          (e) submit proof on forms approved by the division of three years of full-time active
             2129      experience as a mortgage officer in the five years preceding the day on which the application is
             2130      submitted, or its equivalent as approved by the commission; and
             2131          (f) if the individual is not licensed under this chapter at the time of application, submit
             2132      to the background check required by Subsection 61-2c-202 (4).
             2133          (2) (a) Notwithstanding Subsection (1), an individual described in Subsection (2)(b)
             2134      may qualify as a principal lending manager without:
             2135          (i) meeting the requirements of Subsection (1)(c); and



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             2136
         (ii) completing the portions of the principal lending manager examination described in
             2137      Subsection (1)(d) that:
             2138          (A) relate to federal law; and
             2139          (B) do not relate to Utah law.
             2140          (b) An individual may qualify as a principal lending manager pursuant to Subsection
             2141      (2)(a) if the individual:
             2142          (i) submits to the division an affidavit that the individual has five years of experience
             2143      in the business of residential mortgage loans;
             2144          (ii) establishes that the individual's experience described in this Subsection (2)(b) was
             2145      acquired:
             2146          (A) under requirements substantially equivalent to the [licensing] requirements of this
             2147      chapter; and
             2148          (B) in compliance with the requirements of this chapter; and
             2149          (iii) provides any other information required by the division by rule under Subsection
             2150      (2)(c).
             2151          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2152      division shall define the information an individual shall provide to the division pursuant to
             2153      Subsection (2)(b).
             2154          (3) A principal lending manager may not engage in the business of residential
             2155      mortgage loans on behalf of more than one entity at the same time.
             2156          Section 46. Section 61-2c-208 is amended to read:
             2157           61-2c-208. Activation and inactivation of license.
             2158          (1) (a) A licensee may request that the division place the license on inactive status by
             2159      submitting an inactivation form approved by the division.
             2160          (b) On or after [January] May 1, 2006, if the license of a principal lending manager is
             2161      revoked, suspended, or expires, the license of any mortgage officer licensed with that principal
             2162      lending manager shall automatically convert to inactive status.
             2163          (2) To activate a license that has been placed on inactive status, a licensee shall:
             2164          (a) submit an activation form approved by the division;
             2165          (b) pay an activation fee established by the division under Section 63-38-3.2 ; and
             2166          (c) if the licensee is an individual whose license was in inactive status at the time of the



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             2167
     previous renewal, the licensee shall supply the division with proof of the successful completion
             2168      of the number of hours of continuing education that the licensee would have been required to
             2169      complete under [Section] Subsection 61-2c-205 (2)(c) if the licensee's license had been on
             2170      active status, up to a maximum of the number of hours required for two licensing periods.
             2171          (3) On or after [January] May 1, 2006, in addition to the requirements of Subsection
             2172      (2), a mortgage officer whose license has been placed on inactive status shall obtain the
             2173      signature of the principal lending manager with whom the mortgage officer will be actively
             2174      licensed on the form required by the division.
             2175          (4) (a) On or after May 3, 2004 and before [January] May 1, 2006, in addition to the
             2176      requirements of Subsection (2), an entity whose license has been placed on inactive status
             2177      because of the termination, death, disability, or departure of its control person shall submit the
             2178      forms required by the division to affiliate the license of another control person with the entity.
             2179          (b) On or after [January] May 1, 2006, in addition to the requirements of Subsection
             2180      (2), an entity whose license has been placed on inactive status because of the termination,
             2181      death, disability, or departure of its principal lending manager shall submit the forms required
             2182      by the division to affiliate the license of another principal lending manager with the entity.
             2183          Section 47. Section 61-2c-301 is amended to read:
             2184           61-2c-301. Prohibited conduct -- Violations of the chapter.
             2185          (1) An individual or entity transacting the business of residential mortgage loans in this
             2186      state may not:
             2187          (a) give or receive compensation or anything of value in exchange for a referral of
             2188      residential mortgage loan business;
             2189          (b) charge a fee in connection with a residential mortgage loan transaction:
             2190          (i) that is excessive; or
             2191          (ii) if the individual or entity does not comply with Section 70D-1-6 ;
             2192          (c) give or receive compensation or anything of value in exchange for a referral of
             2193      settlement or loan closing services related to a residential mortgage loan transaction;
             2194          (d) do any of the following to induce a lender to extend credit as part of a residential
             2195      mortgage loan transaction:
             2196          (i) make a false statement or representation;
             2197          (ii) cause false documents to be generated; or



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             2198
         (iii) knowingly permit false information to be submitted by any party;
             2199          (e) give or receive compensation or anything of value, or withhold or threaten to
             2200      withhold payment of an appraiser fee, to influence the independent judgment of an appraiser in
             2201      reaching a value conclusion in a residential mortgage loan transaction, except that it is not a
             2202      violation of this section for a licensee to withhold payment because of a bona fide dispute
             2203      regarding a failure of the appraiser to comply with the licensing law or the Uniform Standards
             2204      of Professional Appraisal Practice;
             2205          (f) violate or not comply with:
             2206          (i) this chapter;
             2207          (ii) an order of the commission or division; or
             2208          (iii) a rule made by the division;
             2209          (g) fail to respond within the required time period to:
             2210          (i) a notice or complaint of the division; or
             2211          (ii) a request for information from the division;
             2212          (h) make false representations to the division, including in a licensure statement;
             2213          (i) for any residential mortgage loan transaction beginning on or after January 1, 2004,
             2214      engage in the business of residential mortgage loans with respect to the transaction if the
             2215      individual or entity also acts in any of the following capacities with respect to the same
             2216      residential mortgage loan transaction:
             2217          (i) appraiser;
             2218          (ii) escrow agent;
             2219          (iii) real estate agent; [or]
             2220          (iv) general contractor; or
             2221          (v) title insurance agent;
             2222          (j) order a title insurance report or hold a title insurance policy unless the individual or
             2223      entity provides to the title insurer a copy of a valid, current license under this chapter;
             2224          (k) engage in unprofessional conduct as defined by rule;
             2225          (l) engage in an act or omission in transacting the business of residential mortgage
             2226      loans that constitutes dishonesty, fraud, or misrepresentation;
             2227          (m) engage in false or misleading advertising;
             2228          (n) (i) fail to account for all funds received in connection with a residential mortgage



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             2229
     loan;
             2230          (ii) use funds for a different purpose from the purpose for which the funds were
             2231      received; or
             2232          (iii) [(A)] except as provided in Subsection [(1)(n)(iii)(B)] (4), retain funds paid for
             2233      services if the services were not actually performed;
             2234          [(B) notwithstanding Subsection (1)(n)(iii)(A), a licensee may, upon compliance with
             2235      Section 70D-1-6 , charge a reasonable cancellation fee for work done originating a mortgage if
             2236      the mortgage is not closed;]
             2237          (o) fail, within 90 calendar days of a request from a borrower who has paid for an
             2238      appraisal, to give a copy of an appraisal ordered and used for a transaction to the borrower;
             2239          (p) engage in an act that is performed to:
             2240          (i) evade this chapter; or
             2241          (ii) assist another person to evade this chapter;
             2242          (q) recommend or encourage default or delinquency, or continuation of an existing
             2243      default or delinquency, by a mortgage applicant on an existing indebtedness prior to the closing
             2244      of a residential mortgage loan that will refinance all or part of the indebtedness;
             2245          (r) in the case of a control person of an entity, fail to exercise reasonable supervision
             2246      over the activities of:
             2247          (i) the individuals engaged in the business of residential mortgage loans on behalf of
             2248      the entity; or
             2249          (ii) any unlicensed staff;
             2250          (s) on or after [January] May 1, 2006, in the case of the principal lending manager of
             2251      an entity or a branch office of an entity, fail to exercise reasonable supervision over the
             2252      activities of the mortgage officers who are licensed with the principal lending manager; or
             2253          (t) pay or offer to pay an individual who does not hold a license under this chapter for
             2254      work that requires the individual to hold a license under this chapter.
             2255          (2) Whether or not the crime is related to the business of residential mortgage loans, it
             2256      is a violation of this chapter for a licensee, a control person of a licensee, or a person who is a
             2257      certified education provider to do any of the following with respect to a criminal offense which
             2258      involves moral turpitude:
             2259          (a) be convicted;



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             2260
         (b) plead guilty or nolo contendere;
             2261          (c) enter a plea in abeyance; or
             2262          (d) be subjected to a criminal disposition similar to the ones described in Subsections
             2263      (2)(a) through (c).
             2264          (3) A principal lending manager does not violate Subsection (1)(s) if:
             2265          (a) in contravention of the principal lending manager's written policies and
             2266      instructions, an affiliated licensee of the principal lending manager violates a provision of:
             2267          (i) this chapter; or
             2268          (ii) rules made by the division under this chapter;
             2269          (b) the principal lending manager established and followed reasonable procedures to
             2270      ensure that affiliated licensees receive adequate supervision;
             2271          (c) upon learning of a violation by an affiliated licensee, the principal lending manager
             2272      attempted to prevent or mitigate the damage;
             2273          (d) the principal lending manager did not participate in or ratify the violation by an
             2274      affiliated licensee; and
             2275          (e) the principal lending manager did not attempt to avoid learning of the violation.
             2276          (4) Notwithstanding Subsection (1)(n)(iii), a licensee may, upon compliance with
             2277      Section 70D-1-6 , charge a reasonable cancellation fee for work done originating a mortgage if
             2278      the mortgage is not closed.
             2279          Section 48. Section 61-2c-402 is amended to read:
             2280           61-2c-402. Disciplinary action -- Reinstatement.
             2281          (1) Subject to the requirements of [this] Section 61-2c-402.1 , if an individual or entity
             2282      required to be licensed under this chapter violates this chapter, or an education provider
             2283      required to be certified under this chapter violates this chapter, the commission, with the
             2284      concurrence of the director, may:
             2285          (a) impose a civil penalty against the individual or entity in an amount not to exceed
             2286      $2,500 per violation;
             2287          (b) do any of the following to a license under this chapter:
             2288          (i) suspend;
             2289          (ii) revoke;
             2290          (iii) place on probation;



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             2291
         (iv) deny renewal; or
             2292          (v) deny reinstatement; or
             2293          (c) do both Subsections (1)(a) and (b).
             2294          (2) (a) If a license under this chapter is revoked, the individual or entity may apply to
             2295      have the license reinstated by complying with the requirements of Section 61-2c-202 for
             2296      licensure.
             2297          (b) Notwithstanding Subsection (2)(a) and except as provided in Subsection
             2298      61-2c-202 (4)(e), if a license under this chapter is revoked, the individual or entity may not
             2299      apply for reinstatement of the license sooner than five years after the day on which the license
             2300      is revoked in accordance with this section.
             2301          (c) If an individual or entity whose license has been revoked applies for reinstatement
             2302      in accordance with Subsection (2)(b), the presiding officer may grant the application for
             2303      reinstatement if the presiding officer finds that:
             2304          (i) (A) there has been good conduct on the part of the applicant subsequent to the
             2305      events that led to the revocation; and
             2306          (B) the subsequent good conduct outweighs the events that led to the revocation; and
             2307          (ii) the interest of the public is not likely to be harmed by the granting of the license.
             2308          (3) Subject to the requirements of Section 61-2c-402.1 , if an individual or entity
             2309      required to be licensed under this chapter violates this chapter, or an education provider
             2310      required to be certified under this chapter violates this chapter, the presiding officer in an
             2311      adjudicative proceeding commenced after a person or an entity applies for an original or
             2312      renewed license may:
             2313          (a) deny an application for an original license;
             2314          (b) deny an application for renewal;
             2315          (c) deny an application for reinstatement; or
             2316          (d) issue or renew the license but:
             2317          (i) place the license on probation;
             2318          (ii) suspend the license for a period of time;
             2319          (iii) impose a civil penalty not to exceed $2,500 per violation; or
             2320          (iv) any combination of Subsections (3)(d)(i) through (iii).
             2321          [(2) (a) Before the commission and the division may take an action described in



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             2322
     Subsection (1), the division shall:]
             2323          [(i) give notice to the individual or entity; and]
             2324          [(ii) schedule an adjudicative proceeding.]
             2325          [(b) If after the adjudicative proceeding scheduled under Subsection (2)(a), the
             2326      commission and the director determine that an individual or entity required to be licensed
             2327      under this chapter has violated this chapter, the commission may take an action described in
             2328      Subsection (1) by written order.]
             2329          [(3) In accordance with Title 63, Chapter 46b, Administrative Procedures Act, an
             2330      individual or entity against whom disciplinary action is taken under this section may seek
             2331      review by the executive director of the disciplinary action.]
             2332          [(4) If an individual or entity prevails in a judicial appeal and the court finds that the
             2333      state action was undertaken without substantial justification, the court may award reasonable
             2334      litigation expenses to that individual or entity as provided under Title 78, Chapter 27a, Small
             2335      Business Equal Access to Justice Act.]
             2336          [(5) (a) An order issued under this section takes effect 30 days after the service of the
             2337      order unless otherwise provided in the order.]
             2338          [(b) If an appeal of an order issued under this section is taken by an individual or
             2339      entity, the division may stay enforcement of the commission's order in accordance with Section
             2340      63-46b-18 .]
             2341          [(6) If ordered by the court of competent jurisdiction, the division shall promptly take
             2342      an action described in Subsection (1)(b) against a license granted under this chapter.]
             2343          [(7) (a) If a license under this chapter is revoked, the individual or entity may apply to
             2344      have the license reinstated by complying with the requirements of Section 61-2c-202 for
             2345      licensure.]
             2346          [(b) Notwithstanding Subsection (7)(a), if a license under this chapter is revoked, the
             2347      individual or entity may not apply for reinstatement of the license sooner than five years after
             2348      the date the license is revoked in accordance with this section.]
             2349          [(c) If an individual or entity whose license has been revoked applies for reinstatement
             2350      in accordance with Subsection (7)(b), the commission and the division may grant the
             2351      application for reinstatement if they find that:]
             2352          [(i) there has been good conduct on the part of the applicant subsequent to the events



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             2353
     that led to the revocation, and that the subsequent good conduct outweighs the events which led
             2354      to the revocation; and]
             2355          [(ii) the interest of the public is not likely to be harmed by the granting of the license.]
             2356          Section 49. Section 61-2c-402.1 is enacted to read:
             2357          61-2c-402.1. Adjudicative proceedings -- Review.
             2358          (1) (a) Before the actions described in Section 61-2c-402 may be taken, the division
             2359      shall:
             2360          (i) give notice to the individual or entity; and
             2361          (ii) commence an adjudicative proceeding.
             2362          (b) If after the adjudicative proceeding is commenced under Subsection (1)(a) the
             2363      presiding officer determines that an individual or entity required to be licensed under this
             2364      chapter has violated this chapter, the division may take an action described in Section
             2365      61-2c-402 by written order.
             2366          (2) In accordance with Title 63, Chapter 46b, Administrative Procedures Act, an
             2367      individual or entity against whom action is taken under this section may seek review by the
             2368      executive director of the action.
             2369          (3) If an individual or entity prevails in a judicial appeal and the court finds that the
             2370      state action was undertaken without substantial justification, the court may award reasonable
             2371      litigation expenses to that individual or entity as provided under Title 78, Chapter 27a, Small
             2372      Business Equal Access to Justice Act.
             2373          (4) (a) An order issued under this section takes effect 30 days after the service of the
             2374      order unless otherwise provided in the order.
             2375          (b) If an appeal of an order issued under this section is taken by an individual or entity,
             2376      the division may stay enforcement of the order in accordance with Section 63-46b-18 .
             2377          (5) If ordered by the court of competent jurisdiction, the division shall promptly take an
             2378      action described in Section 61-2c-402 against a license granted under this chapter.
             2379          Section 50. Section 61-2c-404 is amended to read:
             2380           61-2c-404. Civil actions.
             2381          (1) (a) A person who violates this chapter is liable for an additional penalty, as
             2382      determined by the court, of at least the amount the person received in consequence of a
             2383      violation of this chapter as:



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             2384
         (i) commission;
             2385          (ii) compensation; or
             2386          (iii) profit.
             2387          (b) A person aggrieved by a violation of this chapter may:
             2388          (i) bring an action for a penalty described in Subsection (1)(a); and
             2389          (ii) use a penalty obtained under Subsection (1)(a) for the person's own use and benefit.
             2390          (2) A person who is not licensed under this chapter at the time of an act or service that
             2391      requires a license under this chapter may not bring an action in court for the recovery of a
             2392      commission, fee, or compensation for that act or service.
             2393          (3) On or after [January] May 1, 2006:
             2394          (a) a mortgage officer may not bring an action in the mortgage officer's own name for
             2395      the recovery of a fee, commission, or compensation for transacting the business of residential
             2396      mortgage loans unless the action is brought against the principal lending manager with whom
             2397      the mortgage officer was licensed at the time of the act or service that is the subject of the
             2398      action; and
             2399          (b) an action by an entity for the recovery of a fee, commission, or other compensation
             2400      shall be brought by:
             2401          (i) an entity; or
             2402          (ii) the principal lending manager of an entity on behalf of the entity.
             2403          (4) On or after [January] May 1, 2006, a principal lending manager who transacts the
             2404      business of residential mortgage loans on the principal lending manager's own behalf may sue
             2405      in the principal lending manager's own name for the recovery of a fee, commission, or
             2406      compensation for transacting the business of residential mortgage loans.
             2407          Section 51. Uncodified Section 32, Chapter 297, Laws of Utah 2004 is amended to
             2408      read:
             2409          Section 32. Effective date.
             2410          This bill takes effect on May 3, 2004, except that:
             2411          (1) the amendments to Section 61-2c-106 take effect on [January] May 1, 2006; and
             2412          (2) the amendments to Section [ 62-2c-104 ] 61-2c-104 (Effective 07/01/04) take effect
             2413      on July 1, 2004.
             2414          Section 52. Effective date.



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             2415
         (1) Except as provided in Subsection (2), this bill takes effect on May 2, 2005.
             2416          (2) The amendments in this bill to:
             2417          (a) Section 61-2b-10 take effect on January 1, 2008;
             2418          (b) Section 61-2b-14 take effect on January 1, 2008;
             2419          (c) Section 61-2b-15 take effect on January 1, 2008; and
             2420          (d) Section 61-2c-106 (Effective January 1, 2006) take effect on May 1, 2006.
             2421          Section 53. Repealer.
             2422          This bill repeals:
             2423          Section 61-2b-15.6, Conversion of senior appraisers to state-licensed appraisers.





Legislative Review Note
    as of 2-4-05 1:28 PM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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