S.B. 98

1

LICENSING OF SECURITY SERVICES
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Dan R. Eastman
5 House Sponsor: Stephen E. Sandstrom
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to the licensing of persons who provide security
10 services.
11 Highlighted Provisions:
12 This bill:
13 . modifies definitions related to the licensing of contract security companies and
14 private security officers by establishing new classifications for armored car
15 companies and armored car security officers;
16 . modifies the composition of the Security Services Licensing Board by including in
17 its membership an individual who is an officer or owner of a licensed armored car
18 company;
19 . provides for the licensing of armored car companies and armored car security
20 officers as new classifications;
21 . establishes qualifications for licensure as an armored car company and armored car
22 security officer;
23 . provides that it is unlawful conduct for an armored car company to employ the
24 services of an unlicensed armored car security officer, with certain exceptions; and
25 . provides unprofessional conduct and penalty provisions related to armored car
26 companies and armored car security officers.
27 Monies Appropriated in this Bill:

28 None
29 Other Special Clauses:
30 None
31 Utah Code Sections Affected:
32 AMENDS:
33 31A-22-1301, as last amended by Laws of Utah 1997, Chapter 10
34 58-63-102, as last amended by Laws of Utah 2005, Chapter 307
35 58-63-201, as last amended by Laws of Utah 1996, Chapter 228
36 58-63-301, as last amended by Laws of Utah 2001, Chapter 271
37 58-63-302, as last amended by Laws of Utah 2005, Chapter 81
38 58-63-306, as enacted by Laws of Utah 1995, Chapter 215
39 58-63-307, as enacted by Laws of Utah 1995, Chapter 215
40 58-63-308, as last amended by Laws of Utah 2001, Chapter 271
41 58-63-310, as last amended by Laws of Utah 2001, Chapter 271
42 58-63-501, as last amended by Laws of Utah 2003, Chapter 308
43 58-63-502, as last amended by Laws of Utah 2001, Chapter 271
44 58-63-503, as enacted by Laws of Utah 2003, Chapter 308
45
46 Be it enacted by the Legislature of the state of Utah:
47 Section 1. Section 31A-22-1301 is amended to read:
48 31A-22-1301. Liability insurance for armored car companies and contract
49 security companies.
50 Section 58-63-302 applies to liability insurance for armored car companies and contract
51 security companies.
52 Section 2. Section 58-63-102 is amended to read:
53 58-63-102. Definitions.
54 In addition to the definitions in Section 58-1-102 , as used in this chapter:
55 (1) "Armed courier service" means a person engaged in business as a contract security
56 company who transports or offers to transport tangible personal property from one place or
57 point to another under the control of an armed security officer employed by that service.
58 (2) "Armed private security officer" means an individual:

59 (a) employed by a contract security company;
60 (b) whose primary duty is [that of]:
61 (i) guarding personal or real property[,]; or
62 (ii) providing protection or security to the life and well being of humans or animals;
63 and
64 (c) who wears, carries, possesses, or has immediate access to a firearm [at any time] in
65 the performance of the individual's duties.
66 (3) "Armored car [service"] company" means a person engaged in business [as a
67 contract security company] under contract to others who transports or offers to transport
68 tangible personal property, currency, valuables, jewelry, food stamps, or any other high value
69 items, that require secured delivery from one place [or point] to another under the control of an
70 [armed or unarmed private] armored car security officer employed by the company using a
71 specially equipped motor vehicle offering a high degree of security.
72 (4) "Armored car security officer" means an individual:
73 (a) employed by an armored car company;
74 (b) whose primary duty is to guard the tangible property, currency, valuables, jewelry,
75 food stamps, or other high value items that require secured delivery from one place to another;
76 and
77 (c) who wears, carries, possesses, or has immediate access to a firearm in the
78 performance of the individual's duties.
79 [(4)] (5) "Board" means the Security Services Licensing Board created in Section
80 58-63-201 .
81 [(5)] (6) "Contract security company" means a person engaged in business to provide
82 security or guard services to another person [for the purpose of protecting tangible personal
83 property, real property, or the life and well being of human or animal life by assignment of
84 security officers employed by the company and the use of specialized resources, motor
85 vehicles, or equipment] on a contractual basis by assignment of an armed or unarmed private
86 security officer.
87 [(6)] (7) "Identification card" means a personal pocket or wallet size card issued by the
88 division to each armored car and armed or unarmed private security officer licensed under this
89 chapter.

90 [(7)] (8) "Officer" means a president, vice president, secretary, treasurer, or other
91 officer of a corporation or limited liability company listed as an officer in the files with the
92 Division of Corporations and Commercial Code.
93 [(8)] (9) "Owner" means a proprietor or general partner of a proprietorship or
94 partnership, a lessee or assignee of the owner, the manager of the facility, or the event operator.
95 [(9)] (10) "Peace officer" means a person who:
96 (a) is a certified peace officer as defined in Title 53, Chapter 13, Peace Officer
97 Classifications; and
98 (b) derives total or special law enforcement powers from, and is an employee of, the
99 federal government, the state, or [any] a political subdivision, agency, department, branch, or
100 service of either, of [any] a municipality, or [of any other] a unit of local government.
101 [(10)] (11) "Regular basis" means at least 20 [or more] hours per month.
102 [(11)] (12) (a) "Security officer" means an individual who is licensed as an armed or
103 unarmed private security officer under this chapter and who:
104 (i) is employed by a contract security company securing, guarding, or otherwise
105 protecting tangible personal property, real property, or the life and well being of human or
106 animal life against:
107 (A) trespass or other unlawful intrusion or entry;
108 (B) larceny;
109 (C) vandalism or other abuse;
110 (D) arson or [any] other criminal activity; or
111 (E) personal injury caused by another person or as a result of [acts] an act or
112 [omissions] omission by another person;
113 (ii) is controlling, regulating, or directing the flow of movements of [individuals] an
114 individual or [vehicles] vehicle; or
115 (iii) providing street patrol service.
116 (b) "Security officer" does not include an individual whose duties are limited to
117 custodial or other services even though the presence of that individual may act to provide
118 [some of the services] a service set forth under Subsection [(11)] (12)(a).
119 (c) (i) "Security officer" does not include an individual whose duties include taking
120 admission tickets, checking credentials, ushering, or checking bags, purses, backpacks, or other

121 materials [to be carried] going into a facility as described in Subsection [(11)] (12)(c)(ii) if:
122 (A) the individual carries out these duties without the use [or aid] of [any] specialized
123 equipment;
124 (B) the authority of the individual is limited to denying entry or passage of a person
125 into or within the facility; and
126 (C) the individual is not authorized to use physical force in the performance of the
127 individual's duties under this Subsection [(11)] (12)(c).
128 (ii) As used in this Subsection [(11)] (12)(c), "facility" means a sports, concert, or
129 theatrical venue or [any], a convention center, fairgrounds, public assembly facility, or mass
130 gathering location.
131 [(12)] (13) "Security system" means equipment, [devices] a device, or [instruments] an
132 instrument installed for [the purpose of]:
133 (a) detecting and signaling entry or intrusion by [some] an individual into or onto, or
134 exit from the premises protected by the system; or
135 (b) signaling the commission of [a robbery or other] criminal activity at the election of
136 an individual having control of the features of the security system.
137 [(13)] (14) "Specialized [resources] resource, motor [vehicles] vehicle, or equipment"
138 means [items] an item of tangible personal property specifically designed for use in law
139 enforcement or in providing security or guard services, or that [have been] is specially
140 equipped with [devices] a device or [features specifically] feature designed for use in providing
141 law enforcement, security, or guard services, but [do] does not include:
142 (a) standardized clothing, whether or not bearing a company name or logo, if the
143 clothing does not bear the words "security" or "guard"; or
144 (b) [items] an item of tangible personal property, other than [firearms] a firearm or
145 nonlethal [weapons] weapon, that may be used without modification in providing security or
146 guard services.
147 [(14)] (15) "Street patrol service" means a [person engaged in business as a] contract
148 security company [who] that provides patrols by means of foot, vehicle, or other method of
149 transportation using public streets, thoroughfares, or property in the performance of [their] the
150 company's duties and responsibilities.
151 [(15)] (16) "Unarmed private security officer" means an individual:

152 (a) employed by a contract security company;
153 (b) whose primary duty is [that of] guarding personal or real property[,] or providing
154 protection or security to the life and well being of humans or animals;
155 (c) who [never wears, carries, possesses, or has] does not wear, carry, possess, or have
156 immediate access to a firearm [at any time] in the performance of [his] the individual's duties;
157 and
158 (d) who wears clothing of distinctive design or fashion bearing [any] a symbol, badge,
159 emblem, insignia, or other device that identifies [or tends to identify] the [wearer] individual as
160 a security officer.
161 [(16)] (17) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-63-501 .
162 [(17)] (18) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-63-502
163 and as may be further defined by rule.
164 Section 3. Section 58-63-201 is amended to read:
165 58-63-201. Board -- Duties.
166 (1) There is created the Security Services Licensing Board consisting of:
167 (a) [three] two individuals who are officers or owners of a licensed contract security
168 [companies] company;
169 (b) one individual who is an officer or owner of a licensed armored car company;
170 [(b)] (c) one individual from among nominees of the Utah Sheriff's Association;
171 [(c)] (d) one individual from among nominees of the Utah Chief's of Police
172 Association; and
173 [(d)] (e) one individual representing the general public.
174 (2) (a) The [board shall be appointed and serve] executive director shall appoint board
175 members in accordance with Section 58-1-201 .
176 (b) A board member serves in accordance with Section 58-1-201 .
177 (3) (a) The [duties and responsibilities of the] board shall [be] carry out its duties and
178 responsibilities in accordance with Sections 58-1-202 and 58-1-203 . [In addition, the]
179 (b) The board shall designate one of its members on a permanent or rotating basis to:
180 [(a)] (i) assist the division in reviewing [complaints] a complaint concerning the
181 unlawful or unprofessional conduct of a [licensee] person licensed under this chapter; and
182 [(b)] (ii) advise the division in its investigation of [these complaints] the complaint.

183 (4) A board member who, under Subsection (3), has reviewed a complaint or advised
184 in its investigation is disqualified from participating with the board when the board serves as a
185 presiding officer in an adjudicative proceeding concerning the complaint.
186 Section 4. Section 58-63-301 is amended to read:
187 58-63-301. Licensure required -- License classifications.
188 (1) A license is required to engage in the practice of a contract security company, an
189 armored car company, an armored car security officer, armed private security officer, or
190 unarmed private security officer, except as [specifically] otherwise provided in Section
191 58-63-304 , 58-63-310 , or 58-1-307 .
192 (2) The division shall issue to a person who qualifies under this chapter a license in the
193 following classifications:
194 (a) contract security company;
195 (b) armored car company;
196 (c) armored car security officer;
197 [(b)] (d) armed private security officer; or
198 [(c)] (e) unarmed private security officer.
199 Section 5. Section 58-63-302 is amended to read:
200 58-63-302. Qualifications for licensure.
201 (1) Each applicant for licensure as an armored car company or a contract security
202 company shall:
203 (a) submit an application in a form prescribed by the division;
204 (b) pay a fee determined by the department under Section 63-38-3.2 ;
205 (c) have a qualifying agent who:
206 (i) (A) is a resident of the state and an officer, director, partner, proprietor, or manager
207 of the applicant [who:]; and
208 [(i)] (B) passes an examination component established by rule by the division in
209 collaboration with the board; and
210 (ii) (A) demonstrates 6,000 hours of experience as a manager, supervisor, or
211 administrator of an armored car company or a contract security company; or
212 (B) demonstrates 6,000 hours of supervisory experience acceptable to the division in
213 collaboration with the board with a federal, United States military, state, county, or municipal

214 law enforcement agency;
215 (d) if a corporation, provide:
216 (i) the names, addresses, dates of birth, and Social Security numbers of all corporate
217 officers, directors, and those responsible management personnel employed within the state or
218 having direct responsibility for managing operations of the applicant within the state; and
219 (ii) the names, addresses, dates of birth, and Social Security numbers, of all
220 shareholders owning 5% or more of the outstanding shares of the corporation, [except this may
221 not be required] unless waived by the division if the stock is publicly listed and traded;
222 (e) if a limited liability company, provide:
223 (i) the names, addresses, dates of birth, and Social Security numbers of all company
224 officers, and those responsible management personnel employed within the state or having
225 direct responsibility for managing operations of the applicant within the state; and
226 (ii) the names, addresses, dates of birth, and Social Security numbers of all individuals
227 owning 5% or more of the equity of the company;
228 (f) if a partnership, the names, addresses, dates of birth, and Social Security numbers of
229 all general partners, and those responsible management personnel employed within the state or
230 having direct responsibility for managing operations of the applicant within the state;
231 (g) if a proprietorship, the names, addresses, dates of birth, and Social Security
232 numbers of the proprietor, and those responsible management personnel employed within the
233 state or having direct responsibility for managing operations of the applicant within the state;
234 (h) [be of] have good moral character in that officers, directors, shareholders described
235 in Subsection (1)(d)(ii), partners, proprietors, and responsible management personnel have not
236 been convicted of:
237 (i) a felony[,];
238 (ii) a misdemeanor involving moral turpitude[,]; or [any other]
239 (iii) a crime that when considered with the duties and responsibilities of a contract
240 security company [is considered] or an armored car company by the division and the board [to
241 indicate] indicates that the best interests of the public are not served by granting the applicant a
242 license;
243 (i) document that none of the applicant's officers, directors, shareholders described in
244 Subsection (1)(d)(ii), partners, proprietors, and responsible management personnel:

245 (i) have been declared by [any] a court of competent jurisdiction incompetent by reason
246 of mental defect or disease and not been restored; and
247 (ii) currently suffer from habitual drunkenness or from drug addiction or dependence;
248 (j) file and maintain with the division evidence of:
249 (i) comprehensive general liability insurance in a form and in amounts [to be]
250 established by rule by the division in collaboration with the board;
251 (ii) workers' compensation insurance that covers employees of the applicant in
252 accordance with applicable Utah law;
253 (iii) registration with the Division of Corporations and Commercial Code; and
254 (iv) registration as required by applicable law with the:
255 (A) Unemployment Insurance Division in the Department of Workforce Services, for
256 purposes of Title 35A, Chapter 4, Employment Security Act;
257 (B) State Tax Commission; and
258 (C) Internal Revenue Service; and
259 (k) meet with the division and board if requested by the division or board.
260 (2) Each applicant for licensure as an armed private security officer shall:
261 (a) submit an application in a form prescribed by the division;
262 (b) pay a fee determined by the department under Section 63-38-3.2 ;
263 (c) [be of] have good moral character in that the applicant has not been convicted of:
264 (i) a felony[,];
265 (ii) a misdemeanor involving moral turpitude[,]; or [any other]
266 (iii) a crime that when considered with the duties and responsibilities of an armed
267 private security officer [is considered] by the division and the board [to indicate] indicates that
268 the best interests of the public are not served by granting the applicant a license;
269 (d) not have been declared incompetent by [any] a court of competent jurisdiction
270 [incompetent] by reason of mental defect or disease and not been restored;
271 (e) not be currently suffering from habitual drunkenness or from drug addiction or
272 dependence;
273 (f) successfully complete basic education and training requirements established by rule
274 by the division in collaboration with the board;
275 (g) successfully complete firearms training requirements established by rule by the

276 division in collaboration with the board;
277 (h) pass the examination requirement established by rule by the division in
278 collaboration with the board; and
279 (i) meet with the division and board if requested by the division or the board.
280 (3) Each applicant for licensure as an unarmed private security officer shall:
281 (a) submit an application in a form prescribed by the division;
282 (b) pay a fee determined by the department under Section 63-38-3.2 ;
283 (c) [be of] have good moral character in that the applicant has not been convicted of:
284 (i) a felony[,];
285 (ii) a misdemeanor involving moral turpitude[,]; or [any other]
286 (iii) a crime that when considered with the duties and responsibilities of an unarmed
287 private security officer [is considered] by the division and the board [to indicate] indicates that
288 the best interests of the public are not served by granting the applicant a license;
289 (d) not have been declared incompetent by [any] a court of competent jurisdiction
290 [incompetent] by reason of mental defect or disease and not been restored;
291 (e) not be currently suffering from habitual drunkenness or from drug addiction or
292 dependence;
293 (f) successfully complete basic education and training requirements established by rule
294 by the division in collaboration with the board;
295 (g) pass the examination requirement established by rule by the division in
296 collaboration with the board; and
297 (h) meet with the division and board if requested by the division or board.
298 (4) Each applicant for licensure as an armored car security officer shall:
299 (a) submit an application in a form prescribed by the division;
300 (b) pay a fee determined by the department under Section 63-38-3.2 ;
301 (c) have good moral character in that the applicant has not been convicted of:
302 (i) a felony;
303 (ii) a misdemeanor involving moral turpitude; or
304 (iii) a crime that when considered with the duties and responsibilities of an armored car
305 security officer by the division and the board indicates that the best interests of the public are
306 not served by granting the applicant a license;

307 (d) not have been declared incompetent by a court of competent jurisdiction by reason
308 of mental defect or disease and not been restored;
309 (e) not be currently suffering from habitual drunkenness or from drug addiction or
310 dependence;
311 (f) successfully complete basic education and training requirements established by rule
312 by the division in collaboration with the board;
313 (g) successfully complete firearms training requirements established by rule by the
314 division in collaboration with the board;
315 (h) pass the examination requirements established by rule by the division in
316 collaboration with the board; and
317 (i) meet with the division and board if requested by the division or the board.
318 [(4)] (5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
319 Act, the division may make [rules] a rule establishing when the division shall request a Federal
320 Bureau of Investigation [records shall be checked] records' review for [applicants] an applicant.
321 [(5)] (6) To determine if an applicant meets the qualifications of Subsections (1)(h),
322 (2)(c), [and] (3)(c), and (4)(c), the division shall provide an appropriate number of copies of
323 fingerprint cards to the Department of Public Safety with the division's request to:
324 (a) conduct a search of records of the Department of Public Safety for criminal history
325 information relating to each applicant for licensure under this chapter and each applicant's
326 officers, directors, shareholders described in Subsection (1)(d)(ii), partners, proprietors, and
327 responsible management personnel; and
328 (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
329 requiring a check of records of the F.B.I. for criminal history information under this section.
330 [(6)] (7) The Department of Public Safety shall send [to] the division:
331 (a) a written record of criminal history, or certification of no criminal history record, as
332 contained in the records of the Department of Public Safety in a timely manner after receipt of
333 a fingerprint card from the division and a request for review of Department of Public Safety
334 records; and
335 (b) the results of the F.B.I. review concerning an applicant in a timely manner after
336 receipt of information from the F.B.I.
337 [(7)] (8) (a) The division shall charge each applicant a fee, in accordance with Section

338 63-38-3.2 , equal to the cost of performing the records reviews under this section.
339 (b) The division shall pay the Department of Public Safety the costs of all records
340 reviews, and the Department of Public Safety shall pay the F.B.I. the costs of records reviews
341 under this chapter.
342 [(8) Information obtained by the division]
343 (9) The division shall use or disseminate the information it obtains from the reviews of
344 criminal history records of the Department of Public Safety and the F.B.I. [shall be used or
345 disseminated by the division] only [for the purpose of determining] to determine if an applicant
346 for licensure under this chapter is qualified for licensure.
347 Section 6. Section 58-63-306 is amended to read:
348 58-63-306. Replacement of qualifying agent.
349 If the qualifying agent of an armored car company or a contract security company
350 ceases to perform the agent's duties on a regular basis, the licensee shall:
351 (1) notify the division within 15 days by registered or certified mail[,]; and [shall]
352 (2) replace the qualifying agent within [30] 60 days after the time required for
353 notification to the division.
354 Section 7. Section 58-63-307 is amended to read:
355 58-63-307. Use of firearms.
356 (1) An individual licensed as an armored car security officer or an armed private
357 security officer may carry a firearm only while acting as an armored car security officer or an
358 armed private security officer in accordance with this chapter and rules made under this
359 chapter.
360 (2) An individual licensed as an armored car security officer or an armed private
361 security officer is exempt from the provisions of [Sections] Section 76-10-505 and [ 53-5-704 ]
362 Title 53, Chapter 5, Part 7, Concealed Weapon Act, while acting as an armored car security
363 officer or an armed private security officer in accordance with this chapter and rules made
364 under this chapter.
365 Section 8. Section 58-63-308 is amended to read:
366 58-63-308. Evidence of licensure.
367 An individual licensed as an armed private security officer, armored car security officer,
368 or unarmed private security officer shall:

369 (1) carry a copy of the individual's license on the individual's person at all times while
370 acting as a licensee; and
371 (2) display the license upon the request of a peace officer, a representative of the
372 division, or a member of the public.
373 Section 9. Section 58-63-310 is amended to read:
374 58-63-310. Interim permits.
375 (1) [Upon receipt of a complete application for licensure in accordance with Section
376 58-63-302 ,] The division may issue an interim permit to an applicant for licensure as an armed
377 private security officer, armored car security officer, or unarmed private security officer [may
378 be issued an interim permit] upon receipt of a complete application for licensure in accordance
379 with Section 58-63-302 .
380 (2) (a) Each interim permit [shall expire] expires 90 days after it is issued or on the
381 date on which the applicant is issued a license, whichever is earlier.
382 (b) The division may reissue an interim permit if the delay in approving a license is
383 beyond the control or influence of the interim permit holder.
384 (3) An interim permit holder may engage in the scope of practice defined for the
385 license classification that the interim permit holder is seeking.
386 Section 10. Section 58-63-501 is amended to read:
387 58-63-501. Unlawful conduct.
388 "Unlawful conduct" includes:
389 (1) a contract security company employing the services of an unlicensed armed private
390 security officer or unarmed private security officer, except as provided under Section
391 58-63-304 or 58-63-310 ;
392 (2) an armored car company employing the services of an unlicensed armored car
393 security officer, except as provided under Section 58-63-304 or 58-63-310 ;
394 [(2)] (3) filing with the division fingerprint cards for an applicant [which] that are not
395 those of the applicant, or are in any other way false or fraudulent and intended to mislead the
396 division in its consideration of the qualifications of the applicant for licensure; [and]
397 [(3)] (4) practicing or engaging in, or attempting to practice or engage in, activity for
398 which a license is required under this chapter, unless the individual:
399 (a) holds the appropriate license under this chapter; or

400 (b) is exempted from licensure as provided under Section 58-63-304 or 58-63-310 [.];
401 and
402 (5) knowingly employing another person to engage in or practice or attempt to engage
403 in or practice an occupation or profession licensed under this chapter, if the employee:
404 (a) is not licensed to do so under this chapter; or
405 (b) is not exempt from licensure.
406 Section 11. Section 58-63-502 is amended to read:
407 58-63-502. Unprofessional conduct.
408 "Unprofessional conduct" includes:
409 (1) failing as an armored car company or a contract security company to notify the
410 division of the cessation of performance of its qualifying agent or failing to replace its
411 qualifying agent, as required under Section 58-63-306 ;
412 (2) failing as an armed private security officer, armored car security officer, or unarmed
413 private security officer, to carry or display a copy of the licensee's license as required under
414 Section 58-63-308 ;
415 (3) employment by an armored car company or a contract security company of a
416 qualifying agent, armed private security officer, armored car security officer, or unarmed
417 private security officer knowing that the individual has engaged in conduct that is inconsistent
418 with the duties and responsibilities of a licensee under this chapter; and
419 (4) failing to comply with operating standards established by rule.
420 Section 12. Section 58-63-503 is amended to read:
421 58-63-503. Penalties.
422 (1) Unless Subsection (2) applies, an individual who commits an act of unlawful
423 conduct under Section 58-63-501 or who fails to comply with a citation issued under this
424 section after it becomes final is guilty of a class A misdemeanor.
425 (2) The division may immediately suspend a license issued under this chapter of a
426 person who is given a citation for violating Subsection 58-63-501 (1), (2), (4), or [(3)] (5).
427 (3) (a) If upon inspection or investigation, the division determines that a person has
428 violated Subsection 58-63-501 (1), (2), (4), or [(3)] (5) or any rule made or order issued under
429 those subsections, and that disciplinary action is warranted, the director or the director's
430 designee within the division shall promptly issue a citation to the person and:

431 (i) attempt to negotiate a stipulated settlement; or
432 (ii) notify the person to appear for an adjudicative proceeding conducted under Title
433 63, Chapter 46b, Administrative Procedures Act.
434 (b) (i) The division may fine a person who [is in violation of] violates Subsection
435 58-63-501 (1), (2), (4), or [(3)] (5), as evidenced by an uncontested citation, a stipulated
436 settlement, or a finding of a violation in an adjudicative proceeding held under Subsection
437 (3)(a)(ii), or order the person to cease and desist from the violation, or do both.
438 (ii) Except for a cease and desist order, the division may not impose the licensure
439 sanctions listed in Section 58-63-401 through the issuance of a citation under this section.
440 (c) The written citation shall:
441 (i) [be in writing and] describe the nature of the violation, including a reference to the
442 allegedly violated statute, rule, or order [alleged to have been violated];
443 (ii) state the recipient must notify the division in writing within 20 calendar days of
444 issuance of the citation if the recipient wants to contest the citation at the adjudicative
445 proceeding referred to in Subsection (3)(a)(ii); and
446 (iii) explain the consequences of failure to timely contest the citation or to make
447 payment of [any fines] a fine assessed under the citation with the time specified in the citation.
448 (d) (i) [A] The division may serve a citation issued under this section, or a copy of the
449 citation, [may be served] upon [any person upon whom a summons may be served] an
450 individual who is subject to service of a summons under the Utah Rules of Civil Procedure.
451 (ii) (A) The division may serve the individual [may be served] personally or [service
452 may be made upon] serve the individual's agent[, and in either case the service can be made].
453 (B) The division may serve the summons by a division investigator, by a person
454 designated by the director, or by mail.
455 (e) (i) If within 20 days from the service of a citation the person to whom the citation
456 was issued fails to request a hearing to contest the citation, the citation becomes the final order
457 of the division and is not subject to further agency review.
458 (ii) The division may grant an extension of the 20-day period for cause.
459 (f) The division may refuse to issue or renew, suspend, revoke, or place on probation
460 the license of a licensee who fails to comply with a citation after it becomes final.
461 (g) The division may not issue a citation for an alleged violation under this section

462 after the expiration of six months following the occurrence of the alleged violation.
463 (h) The director or the director's designee may assess fines under this section as
464 follows:
465 (i) for a first offense under Subsection (3)(a), a fine of up to $1,000;
466 (ii) for a second offense under Subsection (3)(a), a fine of up to $2,000; and
467 (iii) for [any] a subsequent offense under Subsection (3)(a), a fine of up to $2,000 for
468 each day of continued violation.
469 (i) (i) For purposes of issuing a final order under this section and assessing a fine under
470 Subsection (3)(h), an offense is a second or subsequent offense if:
471 (A) the division previously issued a final order determining that a person committed a
472 first or second offense in violation of Subsection 58-63-501 (1) or [(3)] (4); or
473 (B) (I) the division initiated an action for a first or second offense;
474 (II) no final order has been issued by the division in an action initiated under
475 Subsection (3)(i)(i)(B)(I);
476 (III) the division determines during an investigation that occurred after the initiation of
477 the action under Subsection (3)(i)(i)(B)(I) that the person committed a second or subsequent
478 violation of Subsection 58-63-501 (1) or [(3)] (4); and
479 (IV) after determining that the person committed a second or subsequent offense under
480 Subsection (3)(i)(i)(B)(III), the division issues a final order on the action initiated under
481 Subsection (3)(i)(i)(B)(I).
482 (ii) In issuing a final order for a second or subsequent offense under Subsection
483 (3)(i)(i), the division shall comply with the requirements of this section.
484 (4) (a) [A] The division shall deposit a fine imposed by the director under Subsection
485 (3)(h) [shall be deposited] in the General Fund as a dedicated [credits to be used] credit for use
486 by the division for the purposes listed in Section 58-63-103 .
487 (b) The director may collect a Subsection (3)(h) fine which is not paid by:
488 (i) referring the matter to the Office of State Debt Collection or a collection agency; or
489 (ii) bringing an action in the district court of the county in which the person resides or
490 in the county where the office of the director is located.
491 (c) The director may seek legal assistance from the attorney general or the county or
492 district attorney of the district in which the action is brought to collect the fine.

493 (d) The court shall award reasonable [attorney's] attorney fees and costs to the division
494 for successful actions under Subsection (4)(b)(ii).




Legislative Review Note
as of 11-8-07 9:22 AM

Office of Legislative Research and General Counsel