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H.B. 346 Enrolled

             1     

DIVISION OF REAL ESTATE RELATED

             2     
AMENDMENTS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Gage Froerer

             6     
Senate Sponsor: Sheldon L. Killpack

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies provisions related to areas regulated by the Division of Real Estate.
             11      Highlighted Provisions:
             12          This bill:
             13          .    addresses rulemaking by the Real Estate Commission;
             14          .    addresses fines that may be imposed;
             15          .    addresses firms;
             16          .    addresses disciplinary actions that may be imposed under provisions related to real
             17      estate brokers and agents, the Real Estate Appraiser Licensing and Certification Act,
             18      and the Utah Residential Mortgage Practices Act;
             19          .    provides for registration of trainees under the Real Estate Appraiser Licensing and
             20      Certification Act;
             21          .    addresses terminology for experts under the Real Estate Appraiser Licensing and
             22      Certification Act;
             23          .    modifies criminal penalties under the Real Estate Appraiser Licensing and
             24      Certification Act and the Utah Residential Mortgage Practices Act;
             25          .    addresses the hours required of prelicensing education for mortgage licensing
             26      including providing for rulemaking;
             27          .    removes grandfathering language related to principal lending manager;
             28          .    provides for deposit of certain fees into the Residential Mortgage Loan Education,
             29      Research, and Recovery Fund; and


             30          .    makes technical and conforming amendments.
             31      Monies Appropriated in this Bill:
             32          None
             33      Other Special Clauses:
             34          None
             35      Utah Code Sections Affected:
             36      AMENDS:
             37          61-2-5.5, as last amended by Laws of Utah 2007, Chapter 325
             38          61-2-13, as last amended by Laws of Utah 1991, Chapter 165
             39          61-2-20, as last amended by Laws of Utah 2007, Chapter 325
             40          61-2-21, as last amended by Laws of Utah 2007, Chapter 325
             41          61-2b-2, as last amended by Laws of Utah 2005, Chapter 199
             42          61-2b-6, as last amended by Laws of Utah 2005, Chapter 199
             43          61-2b-8, as last amended by Laws of Utah 2005, Chapter 199
             44          61-2b-18, as last amended by Laws of Utah 2005, Chapter 199
             45          61-2b-21, as last amended by Laws of Utah 2005, Chapter 199
             46          61-2b-22, as last amended by Laws of Utah 2005, Chapter 199
             47          61-2b-24, as last amended by Laws of Utah 2005, Chapter 199
             48          61-2b-25, as last amended by Laws of Utah 2007, Chapter 306
             49          61-2b-26, as last amended by Laws of Utah 2005, Chapter 199
             50          61-2b-27, as last amended by Laws of Utah 2005, Chapter 199
             51          61-2b-28, as last amended by Laws of Utah 2007, Chapter 325
             52          61-2b-29, as last amended by Laws of Utah 2007, Chapter 325
             53          61-2b-30.5, as last amended by Laws of Utah 2005, Chapter 199
             54          61-2b-31, as last amended by Laws of Utah 2007, Chapter 325
             55          61-2b-33, as last amended by Laws of Utah 2005, Chapter 199
             56          61-2c-202, as last amended by Laws of Utah 2007, Chapter 325
             57          61-2c-206, as last amended by Laws of Utah 2007, Chapter 325


             58          61-2c-403, as last amended by Laws of Utah 2007, Chapter 325
             59          61-2c-502, as last amended by Laws of Utah 2007, Chapter 325
             60      ENACTS:
             61          61-2c-405, Utah Code Annotated 1953
             62     
             63      Be it enacted by the Legislature of the state of Utah:
             64          Section 1. Section 61-2-5.5 is amended to read:
             65           61-2-5.5. Real Estate Commission.
             66          (1) There is created within the division a Real Estate Commission. The commission
             67      shall:
             68          (a) make rules for the administration of this chapter that are not inconsistent with this
             69      chapter, including:
             70          (i) licensing of:
             71          (A) principal brokers;
             72          (B) associate brokers;
             73          (C) sales agents;
             74          (D) real estate companies; and
             75          (E) branch offices;
             76          (ii) prelicensing and postlicensing education curricula;
             77          (iii) examination procedures;
             78          (iv) the certification and conduct of:
             79          (A) real estate schools;
             80          (B) course providers; and
             81          (C) instructors;
             82          (v) proper handling of funds received by real estate licensees;
             83          (vi) brokerage office procedures and recordkeeping requirements;
             84          (vii) property management;
             85          (viii) standards of conduct for real estate licensees; [and]


             86          (ix) rules made under Section 61-2-26 regarding an undivided fractionalized long-term
             87      estate; and
             88          (x) if the commission determines necessary, rules as provided in Subsection 61-2-20 (3)
             89      regarding legal forms;
             90          (b) establish, with the concurrence of the division, all fees as provided in this chapter
             91      and Title 61, Chapter 2a, Real Estate Recovery Fund Act;
             92          (c) conduct all administrative hearings not delegated by the commission to an
             93      administrative law judge or the division relating to the:
             94          (i) licensing of any applicant;
             95          (ii) conduct of any licensee;
             96          (iii) the certification or conduct of any real estate school, course provider, or instructor
             97      regulated under this chapter; or
             98          (iv) violation of this chapter by any person;
             99          (d) with the concurrence of the director, impose sanctions as provided in Section
             100      61-2-12 ;
             101          (e) advise the director on the administration and enforcement of any matters affecting
             102      the division and the real estate sales and property management industries;
             103          (f) advise the director on matters affecting the division budget;
             104          (g) advise and assist the director in conducting real estate seminars; and
             105          (h) perform other duties as provided by:
             106          (i) this chapter; and
             107          (ii) Title 61, Chapter 2a, Real Estate Recovery Fund Act.
             108          (2) (a) The commission shall be comprised of five members appointed by the governor
             109      and approved by the Senate.
             110          (b) Four of the commission members shall:
             111          (i) have at least five years' experience in the real estate business; and
             112          (ii) hold an active principal broker, associate broker, or sales agent license.
             113          (c) One commission member shall be a member of the general public.


             114          (d) No more than one commission member described in Subsection (2)(b) shall at the
             115      time of appointment reside in any given county in the state.
             116          (e) At least one commission member described in Subsection (2)(b) shall at the time of
             117      an appointment reside in a county that is not a county of the first or second class.
             118          (3) (a) Except as required by Subsection (3)(b), as terms of current commission
             119      members expire, the governor shall appoint each new member or reappointed member to a
             120      four-year term ending June 30.
             121          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             122      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             123      commission members are staggered so that approximately half of the commission is appointed
             124      every two years.
             125          (c) Upon the expiration of the term of a member of the commission, the member of the
             126      commission shall continue to hold office until a successor is appointed and qualified.
             127          (d) A commission member may not serve more than two consecutive terms.
             128          (e) Members of the commission shall annually select one member to serve as chair.
             129          (4) When a vacancy occurs in the membership for any reason, the replacement shall be
             130      appointed for the unexpired term.
             131          (5) (a) A member may not receive compensation or benefits for the member's services,
             132      but may receive per diem and expenses incurred in the performance of the member's official
             133      duties at the rates established by the Division of Finance under Sections 63A-3-106 and
             134      63A-3-107 .
             135          (b) A member may decline to receive per diem and expenses for the member's service.
             136          (6) (a) The commission shall meet at least monthly.
             137          (b) The director may call additional meetings:
             138          (i) at the director's discretion;
             139          (ii) upon the request of the chair; or
             140          (iii) upon the written request of three or more commission members.
             141          (7) Three members of the commission constitute a quorum for the transaction of


             142      business.
             143          Section 2. Section 61-2-13 is amended to read:
             144           61-2-13. Grounds for revocation of principal broker's license -- Automatic
             145      inactivation of affiliated associate brokers and sales agents licenses.
             146          (1) (a) [Any] An unlawful act or [any] violation of this chapter committed by [any real
             147      estate sales agent or associate broker employed or engaged as an independent contractor by or
             148      on behalf of a licensed principal broker or committed by any employee, officer, or member of a
             149      licensed principal broker] a person listed in Subsection (1)(b) is cause for:
             150          (i) the revocation, suspension, or probation of [the] a principal broker's license[,]; or
             151      [for]
             152          (ii) the imposition of a fine against the principal broker in an amount not to exceed
             153      [$500] $2,500 per violation.
             154          (b) Subsection (1)(a) applies to an act or violation by any of the following:
             155          (i) a real estate sales agent or associate broker employed by a licensed principal broker;
             156          (ii) a real estate sales agent or associate broker engaged as an independent contractor
             157      by or on behalf of a licensed principal broker; or
             158          (iii) an employee, officer, or member of a licensed principal broker.
             159          (2) (a) The revocation or suspension of a principal broker license automatically
             160      inactivates [every] an associate broker or sales agent license granted to [those persons] a person
             161      by reason of [their] that person's affiliation with the principal broker whose license [was] is
             162      revoked or suspended, pending a change of broker affiliation.
             163          (b) A principal broker shall, [prior to] before the effective date of [the] a suspension or
             164      revocation of [his] the principal broker's license, notify in writing every licensee affiliated with
             165      [him] the principal broker of the revocation or suspension of [his] the principal broker license.
             166          Section 3. Section 61-2-20 is amended to read:
             167           61-2-20. Rights and privileges of real estate licensees to fill out forms or
             168      documents.
             169          [A] (1) Except as provided in Subsection (2), a real estate licensee may fill out only


             170      those legal forms approved by the commission and the attorney general, and those forms
             171      provided by statute[, with the following exceptions:].
             172          [(1)] (2) (a) (i) A principal broker may fill out any documents associated with the
             173      closing of a real estate transaction.
             174          [(b)] (ii) A branch broker or associate broker may fill out any documents associated
             175      with the closing of a real estate transaction if designated to fill out the documents by the
             176      principal broker with whom the branch broker or associate broker is affiliated.
             177          [(2)] (b) A real estate licensee may fill out real estate forms prepared by legal counsel of
             178      the buyer, seller, lessor, or lessee.
             179          [(3)] (c) If the commission and the attorney general have not approved a specific form
             180      for the transaction, a principal broker, associate broker, or sales agent may fill out real estate
             181      forms prepared by any legal counsel, including legal counsel retained by the brokerage to
             182      develop these forms.
             183          (3) The commission may by rule, made in accordance with Title 63, Chapter 46a, Utah
             184      Administrative Rulemaking Act, provide a process for the approval of a legal form under this
             185      section by the commission and the attorney general.
             186          Section 4. Section 61-2-21 is amended to read:
             187           61-2-21. Remedies and action for violations.
             188          (1) (a) The director shall issue and serve upon a person an order directing that person
             189      to cease and desist from an act if:
             190          (i) the director has reason to believe that the person has been engaging, is about to
             191      engage, or is engaging in the act constituting a violation of this chapter; and
             192          (ii) it appears to the director that it would be in the public interest to stop the act.
             193          (b) Within ten days after receiving the order, the person upon whom the order is served
             194      may request [an adjudicative proceeding] a hearing.
             195          (c) Pending [the] a hearing requested under Subsection (1)(b), [any] a cease and desist
             196      order shall remain in effect.
             197          (d) If a request for a hearing is made, the division shall follow the procedures and


             198      requirements of Title 63, Chapter 46b, Administrative Procedures Act.
             199          (2) (a) After [the] a hearing requested under Subsection (1), if the commission and the
             200      director agree that [the] an act of the person violates this chapter, the director:
             201          (i) shall issue an order making the order issued under Subsection (1) permanent; and
             202          (ii) may impose [a civil penalty not to exceed the greater of:] another disciplinary action
             203      under Section 61-2-12 .
             204          [(A) $2,500 for each violation; or]
             205          [(B) the amount of any gain or economic benefit derived from each violation.]
             206          (b) The director shall file suit in the name of the Department of Commerce and the
             207      Division of Real Estate, in the district court in the county in which an act described in
             208      Subsection (1) [occurred] occurs or where the person resides or carries on business, to enjoin
             209      and restrain the person from violating this chapter if:
             210          (i) (A) [no] a hearing is not requested under Subsection (1); and
             211          (B) the person fails to cease the act described in Subsection (1); or
             212          (ii) after discontinuing the act described in Subsection (1), the person again commences
             213      the act.
             214          (c) [The] A district [courts] court of this state [shall have] has jurisdiction of an action
             215      brought under this section.
             216          (d) Upon a proper showing in an action brought under this section [related to an
             217      undivided fractionalized long-term estate], the court may:
             218          (i) issue a permanent or temporary, prohibitory or mandatory injunction;
             219          (ii) issue a restraining order or writ of mandamus;
             220          (iii) enter a declaratory judgment;
             221          (iv) appoint a receiver or conservator for the defendant or the defendant's assets;
             222          (v) order disgorgement;
             223          (vi) order rescission;
             224          (vii) impose a civil penalty not to exceed the greater of:
             225          (A) $2,500 for each violation; or


             226          (B) the amount of any gain or economic benefit derived from [each] a violation; and
             227          (viii) enter any other relief the court considers just.
             228          (e) The court may not require the division to post a bond in an action brought under
             229      this Subsection (2).
             230          (3) [The remedies and action] A remedy or action provided in this section [may] does
             231      not limit, interfere with, or prevent the prosecution of[, any other remedies or actions] another
             232      remedy or action, including a criminal [proceedings] proceeding.
             233          Section 5. Section 61-2b-2 is amended to read:
             234           61-2b-2. Definitions.
             235          (1) As used in this chapter:
             236          (a) (i) "Appraisal" means an unbiased analysis, opinion, or conclusion relating to the
             237      nature, quality, value, or utility of a specified [interests] interest in, or [aspects] aspect of,
             238      identified real estate or identified real property.
             239          (ii) An appraisal [shall be] is classified by the nature of the assignment as a valuation
             240      appraisal, an analysis assignment, or a review assignment in accordance with the following
             241      definitions:
             242          (A) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
             243      estimates the value of an identified parcel of real estate or identified real property at a particular
             244      point in time.
             245          (B) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that
             246      relates to the nature, quality, or utility of identified real estate or identified real property.
             247          (C) "Review assignment" means an unbiased analysis, opinion, or conclusion that forms
             248      an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis
             249      assignment.
             250          (b) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as
             251      an Illinois not-for-profit corporation on November 30, 1987.
             252          (c) (i) "Appraisal report" means [any] a communication, written or oral, of an appraisal.
             253          (ii) An appraisal report [shall be] is classified by the nature of the assignment as a


             254      valuation report, analysis report, or review report in accordance with the definitions provided in
             255      Subsection (1)(a)(ii).
             256          (iii) The testimony of a person relating to the person's analyses, conclusions, or
             257      opinions concerning identified real estate or identified real property is considered to be an oral
             258      appraisal report.
             259          (d) "Board" means the Real Estate Appraiser Licensing and Certification Board that is
             260      established in Section 61-2b-7 .
             261          (e) "Certified appraisal report" means a written or oral appraisal report that is certified
             262      by a state-certified general appraiser or state-certified residential appraiser.
             263          (f) (i) (A) "Consultation service" means an engagement to provide a real estate
             264      valuation service analysis, opinion, conclusion, or other service that does not fall within the
             265      definition of appraisal.
             266          (B) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
             267      review assignment.
             268          (ii) Regardless of the intention of the client or employer, if a person prepares an
             269      unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
             270      be an appraisal and not a consultation service.
             271          (g) "Contingent fee" means a fee or other form of compensation, payment of which is
             272      dependent on or conditioned by:
             273          (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
             274      performing the analysis, opinion, or conclusion; or
             275          (ii) achieving a result specified by the person requesting the analysis, opinion, or
             276      conclusion.
             277          (h) "Division" means the Division of Real Estate of the Department of Commerce.
             278          (i) "Federally related transaction" means [any] a real estate related transaction that is
             279      required by federal law or by federal regulation to be supported by an appraisal prepared by:
             280          (i) a state-licensed appraiser; or
             281          (ii) a state-certified appraiser.


             282          (j) "Real estate" means an identified parcel or tract of land including improvements if
             283      any.
             284          (k) "Real estate appraisal activity" means the act or process of making an appraisal of
             285      real estate or real property and preparing an appraisal report.
             286          (l) "Real estate related transaction" means:
             287          (i) the sale, lease, purchase, investment in, or exchange of real property or an interest in
             288      real property, or the financing of such a transaction;
             289          (ii) the refinancing of real property or an interest in real property; or
             290          (iii) the use of real property or an interest in real property as security for a loan or
             291      investment, including mortgage-backed securities.
             292          (m) "Real property" means one or more defined interests, benefits, or rights inherent in
             293      the ownership of real estate.
             294          (n) "State-certified general appraiser" means a person who holds a current, valid
             295      certification as a state-certified general appraiser issued under this chapter.
             296          (o) "State-certified residential appraiser" means a person who holds a current, valid
             297      certification as a state-certified residential real estate appraiser issued under this chapter.
             298          (p) "State-licensed appraiser" means a person who holds a current, valid license as a
             299      state-licensed appraiser issued under this chapter.
             300          [(q) "State-registered appraiser" means a person who before May 3, 1999, was
             301      registered as an appraiser under this chapter.]
             302          [(r)] (q) "Trainee" means an individual who:
             303          (i) does not hold an appraiser license or appraiser certification issued under this chapter;
             304      [and]
             305          (ii) works under the direct supervision of a [state-licensed appraiser or] state-certified
             306      appraiser to earn experience for licensure[.]; and
             307          (iii) is registered as a trainee under this chapter.
             308          [(s)] (r) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
             309      conclusion relating to the nature, quality, value, or utility of identified real estate or identified


             310      real property that is prepared by a person who is employed or retained to act, or would be
             311      perceived by third parties or the public as acting, as a disinterested third party in rendering the
             312      analysis, opinion, or conclusion.
             313          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             314      meaning established by the division by rule made in accordance with Title 63, Chapter 46a, Utah
             315      Administrative Rulemaking Act.
             316          (b) If a term not defined in this section is not defined by rule, the term shall have the
             317      meaning commonly accepted in the business community.
             318          Section 6. Section 61-2b-6 is amended to read:
             319           61-2b-6. Duties and powers of division.
             320          (1) The division [shall have] has the powers and duties listed in this Subsection (1).
             321          (a) The division shall:
             322          (i) receive [applications] an application for licensing [and], certification, or registration;
             323          (ii) establish appropriate administrative procedures for the processing of [applications]
             324      an application for licensure [or], certification, or registration;
             325          (iii) issue [licenses and certifications to qualified applicants] a license or certification to
             326      a qualified applicant pursuant to this chapter; and
             327          [(iv) maintain a registry of the names and addresses of individuals who are currently
             328      licensed or certified as appraisers under this chapter.]
             329          (iv) register an individual who applies for registration as a trainee under this chapter.
             330          (b) (i) The division shall require [a trainee to notify the division that the trainee is
             331      acting] an individual to register as a trainee with the division before the individual acts in the
             332      capacity of a trainee earning experience for licensure.
             333          (ii) The board shall adopt rules in accordance with Title 63, Chapter 46a, Utah
             334      Administrative Rulemaking Act, for the trainee [notification] registration required by this
             335      Subsection (1)(b).
             336          (c) The division shall hold public hearings under the direction of the board.
             337          (d) The division may:


             338          (i) solicit bids and enter into contracts with one or more educational testing services or
             339      organizations for the preparation of a bank of questions and answers approved by the board for
             340      licensing and certification examinations; and
             341          (ii) administer or contract for the administration of licensing and certification
             342      examinations as may be required to carry out the division's responsibilities under this chapter.
             343          (e) The division shall provide administrative assistance to the board by providing to the
             344      board the facilities, equipment, supplies, and personnel that are required to enable the board to
             345      carry out the board's responsibilities under this chapter.
             346          (f) The division shall assist the board in upgrading and improving the quality of the
             347      education and examinations required under this chapter.
             348          (g) The division shall assist the board in improving the quality of the continuing
             349      education available to [persons] a person licensed and certified under this chapter.
             350          (h) The division shall assist the board with respect to the proper interpretation or
             351      explanation of the Uniform Standards of Professional Appraisal Practice as required by Section
             352      61-2b-27 when an interpretation or explanation becomes necessary in the enforcement of this
             353      chapter.
             354          (i) The division shall establish fees in accordance with Section 63-38-3.2 :
             355          (i) for processing:
             356          (A) a trainee [notifications] registration;
             357          (B) [applications] an application for licensing and certification; and
             358          (C) [registration of expert witnesses] approval of an expert witness; and
             359          (ii) for all other functions required or permitted by this chapter.
             360          (j) The division may:
             361          (i) investigate [complaints] a complaint against:
             362          (A) [trainees] a trainee; [or]
             363          (B) [persons] a person licensed or certified under this chapter; or
             364          (C) a person required to be licensed, certified, or registered under this chapter;
             365          (ii) subpoena [witnesses and the production of books, documents, records, and other


             366      papers;] a witness;
             367          (iii) subpoena the production of a book, document, record, or other paper;
             368          [(iii)] (iv) administer [oaths] an oath; and
             369          [(iv)] (v) take testimony and receive evidence concerning [all matters] a matter within
             370      the division's jurisdiction.
             371          (k) The division may:
             372          (i) promote research and conduct studies relating to the profession of real estate
             373      appraising; and
             374          (ii) sponsor real estate appraisal educational activities.
             375          (l) The division shall adopt, with the concurrence of the board, rules for the
             376      administration of this chapter pursuant to Title 63, Chapter 46a, Utah Administrative
             377      Rulemaking Act, that are not inconsistent with this chapter or the constitution and laws of this
             378      state or of the United States.
             379          (m) The division shall employ an appropriate staff to investigate allegations that
             380      [persons] a person required to be licensed [or], certified, or registered under this chapter [failed]
             381      fails to comply with this chapter.
             382          (n) The division may employ [such] other professional, clerical, and technical staff as
             383      may be necessary to properly administer the work of the division under this chapter.
             384          (o) The division may make available, at a reasonable cost determined by the division, a
             385      list of the names and addresses of all persons licensed or certified by the division under this
             386      chapter to the extent the information is a public record under Title 63, Chapter 2, Government
             387      Records Access and Management Act.
             388          (2) (a) The division shall [register expert witnesses who are] approve an expert witness
             389      who is not otherwise licensed or certified under this chapter to appear in [all] an administrative
             390      [and] or judicial tax [proceedings] proceeding to provide evidence related to the valuation of
             391      real property that is assessed by the tax commission, provided that the:
             392          (i) [registration] approval is limited to a specific proceeding;
             393          (ii) [registration] approval is valid until the proceeding becomes final;


             394          (iii) applicant pays [a registration] an approval fee to the division;
             395          (iv) applicant provides the applicant's name, address, occupation, and professional
             396      credentials; and
             397          (v) applicant provides a notarized statement that:
             398          (A) the applicant is competent to render an appraisal and to testify as an expert witness
             399      in the proceeding; and
             400          (B) the appraisal and testimony to be offered shall be in accordance with the Uniform
             401      Standards of Professional Appraisal Practice adopted by the board.
             402          (b) Subsection (2)(a) [shall be] is effective for [all] an administrative [and] or judicial
             403      property tax [proceedings] proceeding related to the valuation of real property that is assessed
             404      by the tax commission, including those filed but which are not final as of May 3, 1994.
             405          (3) (a) [The division shall be] If the conditions of Subsection (3)(b) are met, the division
             406      is immune from any civil action or criminal prosecution for initiating or assisting in [any] a
             407      lawful investigation of [the actions of] an act of, or participating in [any] a disciplinary
             408      proceeding concerning [a trainee or]:
             409          (i) a person required to be licensed, certified, or registered pursuant to this chapter; or
             410          (ii) a person approved as an expert witness pursuant to this chapter [if the action is
             411      taken].
             412          (b) This Subsection (3) applies if the division takes the action:
             413          (i) without malicious intent; and
             414          (ii) in the reasonable belief that the action [was] is taken pursuant to the powers and
             415      duties vested in the [members of the] division under this chapter.
             416          Section 7. Section 61-2b-8 is amended to read:
             417           61-2b-8. Duties of board.
             418          (1) (a) The board shall provide technical assistance to the division relating to real estate
             419      appraisal standards and real estate appraiser qualifications [and shall have the responsibilities,
             420      powers,].
             421          (b) The board has the powers and duties listed in this section.


             422          [(1)] (2) The board shall:
             423          (a) determine the experience, education, and examination requirements appropriate for
             424      [persons] a person licensed under this chapter;
             425          (b) determine the experience, education, and examination requirements appropriate for
             426      [persons] a person certified under this chapter in compliance with the minimum requirements of
             427      Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and consistent with the
             428      intent of this chapter;
             429          (c) determine the appraisal related acts that may be performed by:
             430          (i) a trainee on the basis of the trainee's education and experience;
             431          (ii) clerical staff; and
             432          (iii) a person who:
             433          (A) does not hold a license or certification; and
             434          (B) assists [appraisers] an appraiser licensed or certified under this chapter in providing
             435      appraisal services or consultation services;
             436          (d) determine the procedures for a trainee [notifying] to register with the division [that
             437      the trainee will assist persons licensed or certified under this chapter in providing appraisal
             438      services or consultation services]; and
             439          (e) develop one or more programs to upgrade and improve the experience, education,
             440      and examinations as required under this chapter.
             441          [(2)] (3) (a) The experience, education, and examination requirements established by
             442      the board for [persons] a person licensed or certified under this chapter shall be the minimum
             443      criteria established by the Appraiser Qualification Board of the Appraisal Foundation, unless,
             444      after notice and a public hearing held in accordance with Title 63, Chapter 46a, Utah
             445      Administrative Rulemaking Act, the board finds that the minimum criteria are not appropriate
             446      for a state-licensed [appraisers or] appraiser or a state-certified [appraisers] appraiser in this
             447      state.
             448          (b) If under Subsection [(2)] (3)(a) the board makes a finding that the minimum criteria
             449      are not appropriate, the board shall recommend appropriate criteria to the Legislature.


             450          [(3)] (4) The board shall:
             451          (a) determine the continuing education requirements appropriate for the renewal of
             452      [licenses and certifications] a license or certification issued under this chapter;
             453          (b) develop one or more programs to upgrade and improve continuing education; and
             454          (c) recommend to the division one or more available continuing education courses that
             455      meet the requirements of this chapter.
             456          [(4)] (5) (a) The board shall consider the proper interpretation or explanation of the
             457      Uniform Standards of Professional Appraisal Practice as required by Section 61-2b-27 when:
             458          (i) an interpretation or explanation [becomes] is necessary in the enforcement of this
             459      chapter; and
             460          (ii) the Appraisal Standards Board of the Appraisal Foundation has not [as yet] issued
             461      an interpretation or explanation.
             462          (b) If the conditions of Subsection [(4)] (5)(a) are met, the board shall recommend to
             463      the division the appropriate interpretation or explanation that the division should adopt as a rule
             464      under this chapter.
             465          [(5)] (6) The board shall develop and establish or approve the examination
             466      specifications and the minimum score required to pass [the examinations] an examination for
             467      licensure [and] or certification.
             468          [(6)] (7) The board [shall] may review the:
             469          (a) bank of questions and answers that comprise the examination for [persons] a person
             470      licensed and certified under this chapter;
             471          (b) procedure that is established for selecting individual questions from the bank of
             472      questions for use in each scheduled examination; and
             473          (c) questions in the bank of questions and the related answers to determine whether
             474      they meet the examination specifications established by the board.
             475          [(7)] (8) (a) The board shall conduct an administrative [hearings] hearing, not delegated
             476      by the board to an administrative law judge, in connection with [all] a disciplinary [proceedings]
             477      proceeding under Sections 61-2b-30 and 61-2b-31 concerning:


             478          (i) a person required to be licensed [or], certified, or registered under this chapter; and
             479          (ii) the person's failure to comply with this chapter and the Uniform Standards of
             480      Professional Appraisal Practice as adopted under Section 61-2b-27 .
             481          (b) The board shall issue in [each] an administrative hearing a decision that contains
             482      findings of fact and conclusions of law.
             483          (c) When a determination is made that a person required to be licensed [or], certified, or
             484      registered under this chapter has violated [any provision of] this chapter, the division shall
             485      implement disciplinary action determined by the board.
             486          [(8) The members of the board shall be]
             487          (9) A member of the board is immune from [any] a civil action or criminal prosecution
             488      for [any] a disciplinary proceeding concerning a person required to be registered, licensed, [or]
             489      certified, or approved as an expert under this chapter if the action is taken without malicious
             490      intent and in the reasonable belief that the action taken was taken pursuant to the powers and
             491      duties vested in [the members] a member of the board under this chapter.
             492          [(9)] (10) The board shall require and pass upon proof necessary to determine the
             493      honesty, competency, integrity, and truthfulness of [each] an applicant for:
             494          (a) original [or renewal] licensure [or], certification, or registration; and
             495          (b) renewal licensure or certification.
             496          Section 8. Section 61-2b-18 is amended to read:
             497           61-2b-18. Application for licensure, certification, or registration -- Approval as
             498      an expert witness.
             499          (1) An application for the following shall be sent to the division on [forms] a form
             500      approved by the division:
             501          (a) original certification [or], licensure, or registration;
             502          (b) [registration] approval as an expert witness; and
             503          (c) renewal of certification or licensure.
             504          (2) The payment of the appropriate fee, as fixed by the division with the concurrence of
             505      the board in accordance with Section 63-38-3.2 , must accompany an application for:


             506          (a) [registration] approval as an expert witness;
             507          (b) original certification [or], licensure, or registration; and
             508          (c) renewal of certification or licensure.
             509          (3) At the time of filing an application described in Subsection (1), [each] an applicant
             510      shall:
             511          (a) sign a pledge to comply with the Uniform Standards of Professional Appraisal
             512      Practice and the ethical rules to be observed by an appraiser that are established under Section
             513      61-2b-27 for:
             514          (i) a certified or licensed [appraisers or registered expert witnesses] appraiser;
             515          (ii) a trainee; or
             516          (iii) an expert witness approved under this chapter; and
             517          (b) certify that the applicant understands the types of misconduct, as set forth in this
             518      chapter, for which a disciplinary [proceedings] proceeding may be initiated against [persons] a
             519      person certified [or], licensed, or registered under this chapter.
             520          Section 9. Section 61-2b-21 is amended to read:
             521           61-2b-21. Denial of licensure, certification, or registration.
             522          The division may, upon compliance with Title 63, Chapter 46b, Administrative
             523      Procedures Act, deny the issuance of a license [or], certification, or registration to an applicant
             524      on any of the grounds enumerated in this chapter.
             525          Section 10. Section 61-2b-22 is amended to read:
             526           61-2b-22. Licensing, certification, registration, or expert witness requirements for
             527      nonresidents -- Temporary license or certificate -- Revocation.
             528          (1) [Each] An applicant for [registration as an expert witness, licensure, or certification
             529      under this chapter] one of the following who is not a resident of this state shall submit with the
             530      applicant's application an irrevocable consent that service of process upon the applicant may be
             531      made by delivery of the process to the director of the division if, in an action against the
             532      applicant in a court of this state arising out of the applicant's activities [as a real estate
             533      appraiser] governed by this chapter in this state, the plaintiff cannot, in the exercise of due


             534      diligence, obtain personal service upon the applicant[.]:
             535          (a) approval as an expert witness; or
             536          (b) licensure, certification, or registration under this chapter.
             537          (2) A nonresident of this state who [has complied with the provisions of] complies with
             538      Subsection (1) may obtain [a registration] approval as an expert witness, a license, [or] a
             539      certification, or a registration in this state by complying with [all of] the provisions of this
             540      chapter relating to [registration of] approval as an expert [witnesses] witness, licensure, [or]
             541      certification, or registration.
             542          (3) A nonresident of this state who [has complied with the provisions of] complies with
             543      Subsection (1) may obtain a temporary permit for a license or certification to perform a contract
             544      relating to the appraisal of real estate or real property in this state. To qualify for the issuance
             545      of a temporary permit for a license or certification, an applicant must:
             546          (a) submit an application on a form approved by the division;
             547          (b) submit evidence that the applicant is licensed or certified in the state in which the
             548      applicant primarily conducts business;
             549          (c) certify that no formal charges alleging violation of state appraisal licensing or
             550      certification laws have been filed against the applicant by the applicant's state of domicile; and
             551          (d) pay an application fee in an amount established by the division with the concurrence
             552      of the board.
             553          (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             554      division, with the concurrence of the board, shall make rules establishing:
             555          (a) the duration of a temporary permit; and
             556          (b) procedures for renewal of a temporary permit.
             557          (5) A temporary permit issued under this section shall be immediately and automatically
             558      revoked if the appraiser's license or certification is suspended or revoked in the appraiser's state
             559      of domicile.
             560          (6) [Any] A person whose temporary permit for a license or certification [has been] is
             561      revoked under Subsection (5) is entitled to a postrevocation hearing to challenge the revocation.


             562      The hearing shall be conducted in accordance with Title 63, Chapter 46b, Administrative
             563      Procedures Act.
             564          Section 11. Section 61-2b-24 is amended to read:
             565           61-2b-24. Expert witness, licensing, certification, registration documents --
             566      Assigned number to be used on contracts -- Surrender of documents upon suspension.
             567          (1) The division shall issue to [each] a person [registered] approved as an expert
             568      witness, licensed, [or] certified, or registered under this chapter a document:
             569          (a) stating that the person is [registered] approved as an expert witness, licensed, [or]
             570      certified, or registered under this chapter; and
             571          (b) specifying the expiration date of [the] a license or certification.
             572          (2) (a) [A registration] An approval as an expert witness, a license, [or] a certification,
             573      or a registration document issued under this chapter shall bear [a registration] an approval,
             574      license, [or] certification, or registration number assigned by the division.
             575          (b) [The] An assigned number shall be used in [all statements of qualification, contracts,
             576      or other instruments used by the registration, license, or certificate holder] a statement of
             577      qualification, a contract, or another instrument used by the holder of the approval, license,
             578      certificate, or registration when reference is made to [his] the holder's status as being
             579      [registered] approved, licensed, [or] certified, or registered under this chapter.
             580          (3) (a) [Licensing, certification, and expert witness registration documents remain] An
             581      approval, license, certification, or registration document is the property of the state.
             582          (b) Upon [any] a suspension or revocation of a license [or], certification, or registration
             583      under this chapter, the individual holding the [respective documents] applicable document shall
             584      immediately return the document to the division.
             585          Section 12. Section 61-2b-25 is amended to read:
             586           61-2b-25. Other law unaffected.
             587          Nothing contained in this chapter shall be considered to prohibit [any] a person
             588      [registered] approved, licensed, or certified under this chapter from engaging in the practice of
             589      real estate appraising as a professional corporation or a limited liability company in accordance


             590      with [the provisions of]:
             591          (1) Title 16, Chapter 11, Professional Corporation Act; or
             592          (2) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act.
             593          Section 13. Section 61-2b-26 is amended to read:
             594           61-2b-26. Principal place of business -- Display of documents -- Notify of changes
             595      -- Nonresidents.
             596          (1) [Each] A person licensed or certified under this chapter shall:
             597          (a) designate and maintain a principal place of business; and [shall]
             598          (b) conspicuously display the person's license or certification.
             599          (2) (a) Upon [any] a change of a person's principal business location or home address, a
             600      person licensed or certified under this chapter shall promptly send the division a signed
             601      statement notifying the division of [any] the change within ten business days of the change.
             602          (b) Upon [any] a change of an expert witness's address listed on the expert witness's
             603      [registration] application for approval, the expert witness shall [promptly] send the division a
             604      signed statement notifying the division of [any] the change within ten business days of the
             605      change.
             606          (3) A nonresident licensee or certificate holder, or a nonresident [registered] approved
             607      as an expert witness is not required to maintain a place of business in this state if the nonresident
             608      maintains an active place of business in the nonresident's state of domicile.
             609          Section 14. Section 61-2b-27 is amended to read:
             610           61-2b-27. Professional conduct -- Uniform standards.
             611          (1) (a) [Each] A person licensed, certified, [or] registered, or approved as an expert
             612      witness under this chapter must comply with:
             613          (i) generally accepted standards of professional appraisal practice; and
             614          (ii) generally accepted ethical rules to be observed by a real estate appraiser.
             615          (b) Generally accepted standards of professional appraisal practice are evidenced by the
             616      Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal
             617      Foundation.


             618          (c) After a public hearing held in accordance with Title 63, Chapter 46a, Utah
             619      Administrative Rulemaking Act, the board shall adopt and may make modifications of or
             620      additions to the Uniform Standards of Professional Appraisal Practice as the board considers
             621      appropriate to comply with the Financial Institutions Reform, Recovery, and Enforcement Act
             622      of 1989.
             623          [(2) If the Appraisal Standards Board of the Appraisal Foundation modifies the Uniform
             624      Standards of Professional Appraisal Practice, issues supplemental appraisal standards which it
             625      considers appropriate for residential real estate appraisers or for general real estate appraisers,
             626      or issues ethical rules to be observed by a real estate appraiser and requests the board to
             627      consider the adoption of the modified or supplemental standards or ethical rules, the]
             628          (2) The board shall schedule a public hearing pursuant to Title 63, Chapter 46a, Utah
             629      Administrative Rulemaking Act, for the purpose of deciding whether or not the board should
             630      require [the] a modified or supplemental [standards] standard or the ethical [rules] rule to be
             631      observed by [persons] a person licensed, certified, [or] registered, or approved as an expert
             632      witness under this chapter[.] if the Appraisal Standards Board of the Appraisal Foundation:
             633          (a) (i) modifies the Uniform Standards of Professional Appraisal Practice;
             634          (ii) issues a supplemental appraisal standard which it considers appropriate for:
             635          (A) a residential real estate appraiser; or
             636          (B) a general real estate appraiser; or
             637          (iii) issues an ethical rule to be observed by a real estate appraiser; and
             638          (b) requests the board to consider the adoption of the modified or supplemental
             639      standard or ethical rule.
             640          (3) If, after the notice and public hearing described in Subsection (2), the board finds
             641      that [the] a modified or supplemental [standards] standard or the ethical [rules] rule issued by
             642      the Appraisal Standards Board of the Appraisal Foundation [are] is appropriate for [persons] a
             643      person licensed, certified, [or] registered, or approved as an expert witness under this chapter,
             644      the board shall recommend [rules] a rule requiring [all persons] a person licensed, certified, [or]
             645      registered, or approved as an expert witness under this chapter to observe the modified or


             646      supplemental [standards] standard or the ethical [rules] rule.
             647          Section 15. Section 61-2b-28 is amended to read:
             648           61-2b-28. Enforcement -- Investigation -- Orders -- Hearings.
             649          (1) (a) The division may investigate the actions of:
             650          (i) [any] a person registered, licensed, or certified under this chapter;
             651          (ii) an applicant for registration, licensure, or certification;
             652          (iii) an applicant for renewal of licensure or certification; or
             653          (iv) a person required to be registered, licensed, or certified under this chapter.
             654          (b) The division may initiate an agency action against a person described in Subsection
             655      (1)(a) in accordance with Title 63, Chapter 46b, Administrative Procedures Act, to:
             656          (i) impose disciplinary action;
             657          (ii) deny issuance to an applicant of:
             658          (A) an original [or renewal] registration, license, or certification; or
             659          (B) a renewal of a license or certification; or
             660          (iii) issue a cease and desist order as provided in Subsection (3).
             661          (2) (a) The division may:
             662          (i) administer an oath or affirmation;
             663          (ii) subpoena [witnesses] a witness;
             664          (iii) take evidence; and
             665          (iv) require the production of [books, papers, contracts, records,] a book, paper,
             666      contract, record, other [documents] document, or information relevant to the investigation
             667      described in Subsection (1).
             668          (b) The division may serve [subpoenas] a subpoena by certified mail.
             669          (c) [Each] A failure to respond to a request by the division in an investigation
             670      authorized under this chapter is considered to be a separate violation of this chapter, including:
             671          (i) failing to respond to a subpoena;
             672          (ii) withholding evidence; or
             673          (iii) failing to produce [documents or records] a document or record.


             674          (3) (a) The director shall issue and serve upon a person an order directing that person
             675      to cease and desist from an act if:
             676          (i) the director has reason to believe that the person has been engaging, is about to
             677      engage, or is engaging in the act constituting a violation of this chapter; and
             678          (ii) it appears to the director that it would be in the public interest to stop the act.
             679          (b) Within ten days after receiving the order, the person upon whom the order is served
             680      may request [an adjudicative proceeding] a hearing.
             681          (c) Pending [the] a hearing requested under Subsection (3)(b), [the] a cease and desist
             682      order shall remain in effect.
             683          (d) If a request for hearing is made, the division shall follow the procedures and
             684      requirements of Title 63, Chapter 46b, Administrative Procedures Act.
             685          (4) (a) After [the] a hearing requested under Subsection (3), if the board agrees that
             686      [the acts] an act of the person [violate] violates this chapter, the board:
             687          (i) shall issue an order making the cease and desist order permanent; and
             688          (ii) may impose [a civil penalty not to exceed the greater of:] another disciplinary action
             689      under Section 61-2b-29 .
             690          [(A) $2,500 for each violation; or]
             691          [(B) the amount of any gain or economic benefit derived from each violation.]
             692          (b) The director shall commence an action in the name of the Department of Commerce
             693      and Division of Real Estate, in the district court in the county in which an act described in
             694      Subsection (3) occurs or where the person resides or carries on business, to enjoin and restrain
             695      the person from violating this chapter if:
             696          (i) (A) [no] a hearing is not requested under Subsection (3); and
             697          (B) the person fails to cease the act described in Subsection (3); or
             698          (ii) after discontinuing the act described in Subsection (3), the person again commences
             699      the act.
             700          (5) [The remedies and action] A remedy or action provided in this section [do] does not
             701      limit, interfere with, or prevent the prosecution of [any other remedies or actions] another


             702      remedy or action, including a criminal [proceedings] proceeding.
             703          Section 16. Section 61-2b-29 is amended to read:
             704           61-2b-29. Disciplinary action -- Grounds.
             705          (1) (a) The board may order disciplinary action against [any] a person:
             706          (i) registered, licensed, or certified under this chapter; or
             707          (ii) required to be registered, licensed, or certified under this chapter.
             708          (b) On the basis of [any of the grounds] a ground listed in Subsection (2) for
             709      disciplinary action, board action may include:
             710          (i) revoking, suspending, or placing a person's registration, license, or certification on
             711      probation;
             712          (ii) denying a person's original [or renewal] registration, license, or certification;
             713          (iii) denying a person's renewal license or certification;
             714          [(iii)] (iv) in the case of denial or revocation of a registration, license, or certification,
             715      setting a waiting period for an applicant to apply for a registration, license, or certification under
             716      this chapter;
             717          [(iv)] (v) ordering remedial education;
             718          [(v)] (vi) imposing a civil penalty upon a person not to exceed the greater of:
             719          (A) $2,500 for each violation; or
             720          (B) the amount of any gain or economic benefit from [each] a violation;
             721          [(vi)] (vii) issuing a cease and desist order; or
             722          [(vii)] (viii) doing any combination of Subsections (1)(b)(i) through [(vi)](vii).
             723          (2) The following are grounds for disciplinary action under this section:
             724          (a) procuring or attempting to procure a registration, license, or certification under this
             725      chapter:
             726          (i) by fraud; or
             727          (ii) by making a false statement, submitting false information, or making a material
             728      misrepresentation in an application filed with the division;
             729          (b) paying money or attempting to pay money other than [the fees] a fee provided for


             730      by this chapter to [any] a member or employee of the division to procure a registration, license,
             731      or certification under this chapter;
             732          (c) an act or omission in the practice of real estate appraising that constitutes
             733      dishonesty, fraud, or misrepresentation;
             734          (d) entry of a judgment against a registrant, licensee, or certificate holder on grounds of
             735      fraud, misrepresentation, or deceit in the making of an appraisal of real estate;
             736          (e) a guilty plea to a criminal offense involving moral turpitude that is held in abeyance,
             737      or a conviction, including a conviction based upon a plea of guilty or nolo contendere, of a
             738      criminal offense involving moral turpitude;
             739          (f) engaging in the business of real estate appraising under an assumed or fictitious
             740      name not properly registered in this state;
             741          (g) paying a finder's fee or a referral fee to a person not licensed or certified under this
             742      chapter in connection with an appraisal of real estate or real property in this state;
             743          (h) making a false or misleading statement in:
             744          (i) that portion of a written appraisal report that deals with professional qualifications;
             745      or [in any]
             746          (ii) testimony concerning professional qualifications;
             747          (i) violating or disregarding [any]:
             748          (i) a provision of this chapter[,];
             749          (ii) an order of the board[,]; or [any]
             750          (iii) a rule issued under this chapter;
             751          (j) violating the confidential nature of governmental records to which a person
             752      registered, licensed, [or] certified, or approved as an expert under this chapter gained access
             753      through employment or engagement as an appraiser by a governmental agency;
             754          (k) accepting a contingent fee for performing an appraisal as defined in Subsection
             755      61-2b-2 (1)(a) if in fact the fee is or was contingent upon:
             756          (i) the appraiser reporting a predetermined analysis, opinion, or conclusion [or is or was
             757      contingent upon];


             758          (ii) the analysis, opinion, conclusion, or valuation reached; or [upon]
             759          (iii) the consequences resulting from the appraisal assignment;
             760          (l) unprofessional conduct as defined by statute or rule;
             761          (m) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             762          (i) providing a title insurance product or service without the approval required by
             763      Section 31A-2-405 ; or
             764          (ii) knowingly providing false or misleading information in the statement required by
             765      Subsection 31A-2-405 (2); or
             766          (n) [any] other conduct that constitutes dishonest dealing.
             767          Section 17. Section 61-2b-30.5 is amended to read:
             768           61-2b-30.5. Reinstatement of license, certification, registration, approval --
             769      Expert witness -- Trainee.
             770          (1) An individual who has had [an appraiser registration,] a license, [or] certification,
             771      registration, or approval revoked under this chapter:
             772          (a) may not apply for renewal of that [registration,] license, [or] certification, [but]
             773      registration, or approval; and
             774          (b) may apply for licensure [or], certification, registration, or approval as prescribed for
             775      an original license or certification subject to the limitations in Subsection (2).
             776          (2) An applicant for licensure, certification, [or for] registration, or approval as an
             777      expert witness under Subsection (1):
             778          (a) may not apply for licensure [or], certification, registration, or approval until at least
             779      five years after the date of revocation of the applicant's original license [or], certification,
             780      registration, or approval; and
             781          (b) is not entitled to credit for experience gained prior to the date of revocation in
             782      determining whether the applicant meets the experience requirement for licensure [or],
             783      certification, registration, or approval.
             784          (3) A person whose license or certification is revoked may not act as a trainee until at
             785      least four years after the day on which the person's license or certification is revoked.


             786          Section 18. Section 61-2b-31 is amended to read:
             787           61-2b-31. Disciplinary hearing process.
             788          (1) Before disciplinary action may be taken by the board, the division shall:
             789          (a) notify the person against whom the board seeks to take disciplinary action; and
             790          (b) commence an adjudicative proceeding.
             791          (2) If, after the hearing, the board determines that a person described in Subsection (1)
             792      violated this chapter, the board may impose disciplinary action by written order as provided in
             793      Section 61-2b-29 .
             794          (3) (a) The board may:
             795          (i) conduct hearings with the assistance of an administrative law judge; or [may]
             796          (ii) delegate hearings to an administrative law judge.
             797          (b) If [the] a hearing is delegated by the board to an administrative law judge, the
             798      administrative law judge shall submit to the board for its consideration:
             799          (i) written findings of fact[,];
             800          (ii) written conclusions of law[,]; and
             801          (iii) a recommended order [to the board for its consideration].
             802          (4) (a) [Any] An applicant, licensee, certificate holder, registrant, or person aggrieved,
             803      including the complainant, may obtain judicial review of [any] an adverse ruling, order, or
             804      decision of the board. [Any appeal shall be governed by the Utah Rules of Appellate
             805      Procedure.]
             806          (b) If [the] an applicant, licensee, [or] certificate holder, or registrant prevails in [the] an
             807      appeal and the court finds that the state action [was] is undertaken without substantial
             808      justification, the court may award reasonable litigation expenses to the applicant, licensee, [or]
             809      certificate holder, or registrant as provided under Title [78] 78B, Chapter [27a,] 8, Part 5, Small
             810      Business Equal Access to Justice Act.
             811          Section 19. Section 61-2b-33 is amended to read:
             812           61-2b-33. Penalty for violating this chapter.
             813          [(1) Any person required by this chapter to be licensed or certified who engages in real


             814      estate appraisal activity in this state without obtaining a license or certification or] In addition to
             815      being subject to a disciplinary action by the board, a person who violates [any provision of] this
             816      chapter:
             817          [(a)] (1) is guilty of a class [B] A misdemeanor [punishable by a $1,000 fine and up to
             818      six months in jail], upon a conviction of a first violation of this chapter; and
             819          (2) is guilty of a third degree felony, upon conviction of a second or subsequent
             820      violation of this chapter.
             821          [(b) shall be ineligible to apply for a license or certificate for a period of one year from
             822      the date of the person's conviction of the offense.]
             823          [(2) The division, in its discretion, may grant a license or certification to a person
             824      ineligible pursuant to Subsection (1) within the one-year period upon application and after an
             825      administrative hearing.]
             826          Section 20. Section 61-2c-202 is amended to read:
             827           61-2c-202. Licensure procedures.
             828          (1) To apply for licensure under this chapter an applicant shall:
             829          (a) submit to the division a licensure statement that:
             830          (i) lists any name under which the individual or entity will transact business in this state;
             831          (ii) lists the address of the principal business location of the applicant;
             832          (iii) if the applicant is an entity:
             833          (A) lists the principal lending manager of the entity; and
             834          (B) contains the signature of the principal lending manager;
             835          (iv) demonstrates that the applicant meets the qualifications listed in Section 61-2c-203 ;
             836          (v) if the applicant is an entity, lists:
             837          (A) all jurisdictions in which the entity is registered, licensed, or otherwise regulated in
             838      the business of residential mortgage loans; and
             839          (B) the history of any disciplinary action or adverse administrative action taken against
             840      the entity by any regulatory agency within the ten years preceding the application; and
             841          (vi) includes any information required by the division by rule;


             842          (b) pay to the division:
             843          (i) an application fee established by the division in accordance with Section 63-38-3.2 ;
             844      and
             845          (ii) the reasonable expenses incurred in processing the application for licensure,
             846      including the costs incurred by the division under Subsection (4); and
             847          (c) comply with Subsection (4).
             848          (2) (a) The division shall issue a license to an applicant if the division, with the
             849      concurrence of the commission, finds that the applicant:
             850          (i) meets the qualifications of Section 61-2c-203 ; and
             851          (ii) complies with this section.
             852          (b) The commission may delegate to the division the authority to:
             853          (i) review [any] a class or category of application for an initial or renewed [licenses]
             854      license;
             855          (ii) determine whether an applicant meets the licensing criteria in Section 61-2c-203 ;
             856          (iii) conduct [any] a necessary hearing on an application; and
             857          (iv) approve or deny a license application without concurrence by the commission.
             858          (c) If the commission delegates to the division the authority to approve or deny an
             859      application without concurrence by the commission and the division denies an application for
             860      licensure, the applicant who is denied licensure may petition the commission for review of the
             861      denial.
             862          (d) An applicant who is denied licensure under [this] Subsection (2)(b) may seek agency
             863      review by the executive director only after the commission [has reviewed] reviews the division's
             864      denial of the applicant's application.
             865          (3) Subject to Subsection (2)(d) and in accordance with Title 63, Chapter 46b,
             866      Administrative Procedures Act, an applicant who is denied licensure under this chapter may
             867      submit a request for agency review to the executive director within 30 days following the
             868      [issuance of] day on which the commission order denying the licensure is issued.
             869          (4) (a) An individual applying for a license under this chapter shall:


             870          (i) submit a fingerprint card in a form acceptable to the division at the time the licensure
             871      statement is filed;
             872          (ii) consent to a criminal background check by:
             873          (A) the Utah Bureau of Criminal Identification; and
             874          (B) the Federal Bureau of Investigation;
             875          (iii) provide proof using [methods] a method approved by the division of having
             876      successfully completed [20 hours of] approved prelicensing education required by the
             877      commission under Section 61-2c-104 :
             878          (A) before taking the examination required by Subsection (4)(a)(iv); and
             879          (B) in the number of hours, not to exceed 90 hours, required by rule made by the
             880      division in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act; and
             881          (iv) provide proof using [methods] a method approved by the division of having
             882      successfully passed an examination approved by the commission under Section 61-2c-104 .
             883          (b) The division shall request the Department of Public Safety to complete a Federal
             884      Bureau of Investigation criminal background check for [each] an applicant [and each control
             885      person of an applicant] through a national criminal history system.
             886          (c) The applicant shall pay the cost of:
             887          (i) the fingerprinting required by this section; and
             888          (ii) the criminal background check required by this section.
             889          (d) (i) A license under this chapter is conditional pending completion of the criminal
             890      background check required by this Subsection (4).
             891          (ii) If a criminal background check discloses that an applicant [failed] fails to accurately
             892      disclose a criminal history, the license shall be immediately and automatically revoked.
             893          (iii) An individual or entity whose conditional license is revoked under Subsection
             894      (4)(d)(ii) may appeal the revocation in a hearing conducted by the commission:
             895          (A) after the revocation; and
             896          (B) in accordance with Title 63, Chapter 46b, Administrative Procedures Act.
             897          (iv) The commission may delegate to the division or an administrative law judge the


             898      authority to conduct a hearing described in Subsection (4)(d)(iii).
             899          (v) Relief from a revocation may be granted only if:
             900          (A) the criminal history upon which the division based the revocation:
             901          (I) did not occur; or
             902          (II) is the criminal history of another person;
             903          (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
             904          (II) the applicant had a reasonable good faith belief at the time of application that there
             905      was no criminal history to be disclosed; or
             906          (C) the division [failed] fails to follow the prescribed procedure for the revocation.
             907          (e) If a license is revoked or a revocation is upheld after a hearing described in
             908      Subsection (4)(d)(iii), the person may not apply for a new license for a period of 12 months
             909      after the day on which the license is revoked.
             910          (f) The funds paid by an applicant for the cost of the criminal background check shall be
             911      nonlapsing.
             912          (g) The commission may delegate to the division the authority to make a decision on
             913      whether relief from a revocation should be granted.
             914          Section 21. Section 61-2c-206 is amended to read:
             915           61-2c-206. Principal lending manager licenses.
             916          (1) [Except as provided in Subsection (2), to] To qualify as a principal lending manager
             917      under this chapter, an individual shall, in addition to meeting the standards in Section
             918      61-2c-203 :
             919          (a) submit an application on a form approved by the division;
             920          (b) pay [fees] a fee determined by the division under Section 63-38-3.2 ;
             921          (c) submit proof of having successfully completed 40 hours of prelicensing education
             922      approved by the commission under Section 61-2c-104 ;
             923          (d) submit proof of having successfully completed the principal lending manager
             924      examination approved by the commission under Section 61-2c-104 ;
             925          (e) submit proof on [forms] a form approved by the division of three years of full-time


             926      active experience as a mortgage officer in the five years preceding the day on which the
             927      application is submitted, or its equivalent as approved by the commission; and
             928          (f) if the individual is not licensed under this chapter at the time of application, submit
             929      to the criminal background check required by Subsection 61-2c-202 (4).
             930          [(2) (a) Notwithstanding Subsection (1), an individual described in Subsection (2)(b)
             931      may qualify as a principal lending manager without:]
             932          [(i) meeting the requirements of Subsection (1)(c); and]
             933          [(ii) completing the portions of the principal lending manager examination described in
             934      Subsection (1)(d) that:]
             935          [(A) relate to federal law; and]
             936          [(B) do not relate to Utah law.]
             937          [(b) An individual may qualify as a principal lending manager pursuant to Subsection
             938      (2)(a) if the individual:]
             939          [(i) submits to the division an affidavit that the individual has five years of experience in
             940      the business of residential mortgage loans;]
             941          [(ii) establishes that the individual's experience described in this Subsection (2)(b) was
             942      acquired:]
             943          [(A) under requirements substantially equivalent to the requirements of this chapter;
             944      and]
             945          [(B) in compliance with the requirements of this chapter; and]
             946          [(iii) provides any other information required by the division by rule under Subsection
             947      (2)(c).]
             948          [(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             949      the division shall define the information an individual shall provide to the division pursuant to
             950      Subsection (2)(b).]
             951          [(3)] (2) A principal lending manager may not engage in the business of residential
             952      mortgage loans on behalf of more than one entity at the same time.
             953          Section 22. Section 61-2c-403 is amended to read:


             954           61-2c-403. Cease and desist orders.
             955          (1) (a) The director may issue and serve by certified mail, or by personal service, on an
             956      individual or entity an order to cease and desist from an act if:
             957          (i) the director has reason to believe that the individual or entity has been engaged, is
             958      engaging in, or is about to engage in [acts] the act constituting a violation of this chapter; and
             959          (ii) it appears to the director that it would be in the public interest to stop the [acts] act.
             960          (b) Within ten days after service of the order, the party named in the order may request
             961      [an adjudicative proceeding] a hearing to be held in accordance with Title 63, Chapter 46b,
             962      Administrative Procedures Act.
             963          (c) Pending [the] a hearing requested under Subsection (1)(b), [the] a cease and desist
             964      order shall remain in effect.
             965          (2) (a) After the hearing described in Subsection (1), if the director finds that [the acts]
             966      an act of the individual or entity [violate] violates this chapter, the director:
             967          (i) shall issue an order making the cease and desist order permanent; and
             968          (ii) may impose [a civil penalty not to exceed the greater of:] another disciplinary action
             969      under Section 61-2c-402 .
             970          [(A) $2,500 for each violation; or]
             971          [(B) the amount of any gain or economic benefit derived from each violation.]
             972          (b) (i) The director may file suit in the name of the division to enjoin and restrain an
             973      individual or entity on whom an order is served under this section from violating this chapter if:
             974          (A) (I) the individual or entity [did] does not request a hearing under Subsection (1); or
             975          (II) a permanent cease and desist order is issued against the individual or entity
             976      following a hearing or stipulation; and
             977          (B) (I) the individual or entity fails to cease the [acts] act; or
             978          (II) after discontinuing the [acts] act, the individual or entity again commences the
             979      [acts] act.
             980          (ii) The suit described in Subsection (2)(b)(i) shall be filed in the district court in the
             981      county:


             982          (A) in which the [acts occurred] act occurs;
             983          (B) where the individual resides; or
             984          (C) where the individual or entity carries on business.
             985          (3) The cease and desist order issued under this section may not interfere with or
             986      prevent the prosecution of a remedy or action enforcement under this chapter.
             987          (4) An individual who violates a cease and desist order issued under this section is
             988      guilty of a class A misdemeanor.
             989          Section 23. Section 61-2c-405 is enacted to read:
             990          61-2c-405. Penalty for violation of chapter.
             991          In addition to being subject to a disciplinary action by the commission, a person who
             992      violates this chapter:
             993          (1) is guilty of a class A misdemeanor, upon conviction of a first violation of this
             994      chapter; and
             995          (2) is guilty of a third degree felony, upon conviction of a second or subsequent
             996      violation of this chapter.
             997          Section 24. Section 61-2c-502 is amended to read:
             998           61-2c-502. Additional license fee.
             999          (1) An individual who applies for or renews a license shall pay, in addition to the
             1000      application or renewal fee, a reasonable annual fee:
             1001          (a) determined by the division with the concurrence of the commission; and
             1002          (b) not to exceed $18.
             1003          (2) An entity that applies for or renews an entity license shall pay, in addition to the
             1004      application or renewal fee, a reasonable annual fee:
             1005          (a) determined by the division with the concurrence of the commission; and
             1006          (b) not to exceed $25.
             1007          (3) Notwithstanding Section 13-1-2 , the following shall be paid into the [fund]
             1008      Residential Mortgage Loan Education, Research, and Recovery Fund to be used as provided in
             1009      this part:


             1010          (a) [fees] a fee provided in this section; [and]
             1011          (b) a fee for certifying:
             1012          (i) a mortgage school;
             1013          (ii) a mortgage course; or
             1014          (iii) a mortgage instructor; and
             1015          [(b)] (c) a civil [penalties] penalty imposed under this chapter.
             1016          (4) If the balance in the [fund] Residential Mortgage Loan Education, Research, and
             1017      Recovery Fund that is available to satisfy [judgments] a judgment against [licensees] a licensee
             1018      decreases to less than $100,000, the division may make an additional [assessments] assessment
             1019      to [licensees] a licensee to maintain the balance available at $100,000 to satisfy judgments.


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