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First Substitute H.B. 275

This document includes House Floor Amendments incorporated into the bill on Thu, Feb 18, 2010 at 5:14 PM by lerror. -->

Representative Gage Froerer proposes the following substitute bill:


             1     
DIVISION OF REAL ESTATE AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gage Froerer

             5     
Senate Sponsor: Wayne L. Niederhauser

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to the Division of Real Estates' regulation of the
             10      appraisal, mortgage, and real estate industries.
             11      Highlighted Provisions:
             12          This bill:
             13          .    recodifies Title 61, Chapter 2, Division of Real Estate, and Chapter 2a, Real Estate
             14      Recovery Fund Act, and as part of the recodification creates Chapter 2f, Real Estate
             15      Licensing and Practices Act;
             16          .    addresses definitions and consistency of terminology;
             17          .    addresses powers under appraisal, mortgage, and real estate statutes, including:
             18              .    providing for the suspension of a license, registration, or certification for
             19      payment of a fee with a dishonored instrument;
             20              .    addressing investigatory powers and costs;
             21              .    addressing the division providing lists of licensee, registrants, and certificate
             22      holders;
             23              .    addressing the effect of a failure to accurately disclose a criminal history; and
             24              .    requiring deadlines for compliance with disciplinary actions;
             25          .    increases certain fines;


             26          .    clarifies procedures related to the renewal of a registration as a trainee under
             27      appraisal statutes;
             28          .    modifies the powers of the Real Estate Appraiser Licensing and Certification Board
             29      with regard to examinations and education;
             30          .    modifies requirements for licensing and certification under appraisal statutes;
             31          .    corrects references to trainees under appraisal statutes;
             32          .    addresses ability of persons licensed, certified, or registered under appraisal statutes
             33      to operate as a professional corporation or limited liability company;
             34          .    requires that an individual licensed under mortgage statutes be sponsored by a
             35      licensed entity;
             36          .    addresses education and examination requirements under mortgage statutes that are
             37      specific to obtaining a license in Utah;
             38          .    addresses the process and requirements to obtain a license, renew a license, or notify
             39      the division of changes in certain information;
             40          .    provides for certain past revocations of a license under mortgage statutes to be
             41      converted to a suspension of the license;
             42          .    modifies criminal penalties;
             43          .    clarifies procedures for making claims against the mortgage recovery funds and real
             44      estate; and
             45          .    makes technical and conforming amendments.
             46      Monies Appropriated in this Bill:
             47          None
             48      Other Special Clauses:
             49          This bill coordinates with H.B. 53, Foreclosure Rescue and Loan Modification
             50      Amendments, to technically merge changes.
             51      Utah Code Sections Affected:
             52      AMENDS:
             53          10-3-1110, as last amended by Laws of Utah 2008, Chapter 169
             54          13-25a-111, as last amended by Laws of Utah 2005, Chapter 18
             55          16-11-2, as last amended by Laws of Utah 2009, Chapter 220
             56          17-50-106, as enacted by Laws of Utah 2008, Chapter 169


             57          31A-2-402, as last amended by Laws of Utah 2009, Chapter 372
             58          34-44-102, as enacted by Laws of Utah 2007, Chapter 65
             59          34A-2-104, as last amended by Laws of Utah 2009, Chapter 185
             60          41-1a-422, as last amended by Laws of Utah 2009, Chapters 183, 348, and 380
             61          48-2c-1502, as last amended by Laws of Utah 2009, Chapter 141
             62          57-11-2, as last amended by Laws of Utah 2009, Chapter 352
             63          57-11-14, as last amended by Laws of Utah 2009, Chapter 352
             64          57-19-14, as last amended by Laws of Utah 1990, Chapter 199
             65          57-21-2, as last amended by Laws of Utah 2008, Chapter 382
             66          57-23-5, as enacted by Laws of Utah 1991, Chapter 262
             67          57-27-102, as enacted by Laws of Utah 2009, Chapter 194
             68          58-56-16, as last amended by Laws of Utah 2009, Chapter 183
             69          61-1-13, as last amended by Laws of Utah 2009, Chapters 351 and 355
             70          61-2b-2, as last amended by Laws of Utah 2008, Chapters 382 and 387
             71          61-2b-3, as last amended by Laws of Utah 2005, Chapter 199
             72          61-2b-6, as last amended by Laws of Utah 2009, Chapters 183 and 352
             73          61-2b-8, as last amended by Laws of Utah 2009, Chapter 352
             74          61-2b-10, as last amended by Laws of Utah 2005, Chapter 199
             75          61-2b-14, as last amended by Laws of Utah 2005, Chapter 199
             76          61-2b-15, as last amended by Laws of Utah 2005, Chapter 199
             77          61-2b-17, as last amended by Laws of Utah 2007, Chapter 325
             78          61-2b-18, as last amended by Laws of Utah 2009, Chapter 183
             79          61-2b-19, as last amended by Laws of Utah 2005, Chapter 199
             80          61-2b-20, as last amended by Laws of Utah 2009, Chapter 352
             81          61-2b-25, as last amended by Laws of Utah 2008, Chapter 387
             82          61-2b-28, as last amended by Laws of Utah 2008, Chapters 382 and 387
             83          61-2b-29, as last amended by Laws of Utah 2009, Chapter 352
             84          61-2b-30.5, as last amended by Laws of Utah 2008, Chapter 387
             85          61-2b-32, as last amended by Laws of Utah 1999, Chapter 117
             86          61-2b-33, as last amended by Laws of Utah 2009, Chapter 352
             87          61-2b-36, as last amended by Laws of Utah 2005, Chapter 199


             88          61-2b-39, as last amended by Laws of Utah 2005, Chapter 199
             89          61-2b-40, as last amended by Laws of Utah 2005, Chapter 199
             90          61-2c-102, as last amended by Laws of Utah 2009, Chapter 372
             91          61-2c-103, as last amended by Laws of Utah 2009, Chapters 183, 352, and 372
             92          61-2c-104, as last amended by Laws of Utah 2009, Chapters 352 and 372
             93          61-2c-105, as last amended by Laws of Utah 2009, Chapter 372
             94          61-2c-106, as last amended by Laws of Utah 2009, Chapter 372
             95          61-2c-201, as last amended by Laws of Utah 2009, Chapters 183 and 372
             96          61-2c-202, as last amended by Laws of Utah 2009, Chapters 183 and 372
             97          61-2c-203, as last amended by Laws of Utah 2009, Chapter 372
             98          61-2c-204.1, as enacted by Laws of Utah 2009, Chapter 372
             99          61-2c-205, as last amended by Laws of Utah 2009, Chapters 183, 352, and 372
             100          61-2c-205.1, as enacted by Laws of Utah 2009, Chapter 372
             101          61-2c-206, as last amended by Laws of Utah 2009, Chapters 183 and 372
             102          61-2c-301, as last amended by Laws of Utah 2009, Chapters 72 and 372
             103          61-2c-302, as last amended by Laws of Utah 2009, Chapter 372
             104          61-2c-401, as last amended by Laws of Utah 2007, Chapter 325
             105          61-2c-402, as last amended by Laws of Utah 2009, Chapters 352 and 372
             106          61-2c-404, as last amended by Laws of Utah 2007, Chapter 325
             107          61-2c-501, as last amended by Laws of Utah 2009, Chapter 352
             108          61-2c-502, as last amended by Laws of Utah 2009, Chapters 352 and 372
             109          61-2c-503, as last amended by Laws of Utah 2009, Chapter 352
             110          61-2c-505, as enacted by Laws of Utah 2004, Chapter 297
             111          61-2c-507, as last amended by Laws of Utah 2009, Chapter 372
             112          63G-2-302, as last amended by Laws of Utah 2009, Chapters 126, 349, and 379
             113          63J-1-602, as enacted by Laws of Utah 2009, Chapter 368
             114          70D-3-102, as enacted by Laws of Utah 2009, Chapter 72
             115          72-5-116, as last amended by Laws of Utah 2008, Chapter 169
             116      ENACTS:
             117          61-2-101, Utah Code Annotated 1953
             118          61-2-102, Utah Code Annotated 1953


             119          61-2-202, Utah Code Annotated 1953
             120          61-2c-209, Utah Code Annotated 1953
             121          61-2c-501.5, Utah Code Annotated 1953
             122          61-2f-101, Utah Code Annotated 1953
             123          61-2f-105, Utah Code Annotated 1953
             124          61-2f-206, Utah Code Annotated 1953
             125          61-2f-305, Utah Code Annotated 1953
             126      RENUMBERS AND AMENDS:
             127          61-2-201, (Renumbered from 61-2-5, as last amended by Laws of Utah 2009, Chapters
             128      269 and 372)
             129          61-2-203, (Renumbered from 61-2-5.1, as last amended by Laws of Utah 2008, Chapter
             130      382)
             131          61-2-204, (Renumbered from 61-2-28, as last amended by Laws of Utah 2008, Chapters
             132      216 and 382)
             133          61-2f-102, (Renumbered from 61-2-2, as last amended by Laws of Utah 2005, Chapter
             134      257)
             135          61-2f-103, (Renumbered from 61-2-5.5, as last amended by Laws of Utah 2008,
             136      Chapter 387)
             137          61-2f-104, (Renumbered from 61-2-14, as last amended by Laws of Utah 1983, Chapter
             138      257)
             139          61-2f-106, (Renumbered from 61-2-22, as last amended by Laws of Utah 1985, Chapter
             140      162)
             141          61-2f-201, (Renumbered from 61-2-1, as last amended by Laws of Utah 1996, Chapter
             142      102)
             143          61-2f-202, (Renumbered from 61-2-3, as last amended by Laws of Utah 2009, Chapter
             144      356)
             145          61-2f-203, (Renumbered from 61-2-6, as last amended by Laws of Utah 2009, Chapter
             146      352)
             147          61-2f-204, (Renumbered from 61-2-9, as last amended by Laws of Utah 2009, Chapters
             148      183 and 352)
             149          61-2f-205, (Renumbered from 61-2-7, as last amended by Laws of Utah 1991, Chapter


             150      165)
             151          61-2f-207, (Renumbered from 61-2-7.1, as last amended by Laws of Utah 2009,
             152      Chapter 183)
             153          61-2f-301, (Renumbered from 61-2-7.2, as last amended by Laws of Utah 2009,
             154      Chapter 352)
             155          61-2f-302, (Renumbered from 61-2-10, as last amended by Laws of Utah 2009, Chapter
             156      352)
             157          61-2f-303, (Renumbered from 61-2-25, as enacted by Laws of Utah 2003, Chapter 264)
             158          61-2f-304, (Renumbered from 61-2-8, as last amended by Laws of Utah 2000, Chapter
             159      86)
             160          61-2f-306, (Renumbered from 61-2-20, as last amended by Laws of Utah 2008, Chapter
             161      387)
             162          61-2f-307, (Renumbered from 61-2-26, as last amended by Laws of Utah 2008, Chapter
             163      382)
             164          61-2f-308, (Renumbered from 61-2-27, as enacted by Laws of Utah 2005, Chapter 252)
             165          61-2f-401, (Renumbered from 61-2-11, as last amended by Laws of Utah 2009, Chapter
             166      352)
             167          61-2f-402, (Renumbered from 61-2-11.5, as last amended by Laws of Utah 2007,
             168      Chapter 325)
             169          61-2f-403, (Renumbered from 61-2-24, as enacted by Laws of Utah 1996, Chapter 102)
             170          61-2f-404, (Renumbered from 61-2-12, as last amended by Laws of Utah 2009, Chapter
             171      352)
             172          61-2f-405, (Renumbered from 61-2-17, as last amended by Laws of Utah 2009, Chapter
             173      352)
             174          61-2f-406, (Renumbered from 61-2-13, as last amended by Laws of Utah 2008, Chapter
             175      387)
             176          61-2f-407, (Renumbered from 61-2-21, as last amended by Laws of Utah 2008,
             177      Chapters 370, 382, and 387)
             178          61-2f-408, (Renumbered from 61-2-13.5, as enacted by Laws of Utah 1997, Chapter
             179      232)
             180          61-2f-409, (Renumbered from 61-2-18, as last amended by Laws of Utah 1985, Chapter


             181      162)
             182          61-2f-501, (Renumbered from 61-2a-1, as enacted by Laws of Utah 1975, Chapter 172)
             183          61-2f-502, (Renumbered from 61-2a-2, as last amended by Laws of Utah 2009, Chapter
             184      352)
             185          61-2f-503, (Renumbered from 61-2a-3, as last amended by Laws of Utah 2009, Chapter
             186      352)
             187          61-2f-504, (Renumbered from 61-2a-12, as last amended by Laws of Utah 2009,
             188      Chapter 352)
             189          61-2f-505, (Renumbered from 61-2a-4, as last amended by Laws of Utah 2009, Chapter
             190      352)
             191          61-2f-506, (Renumbered from 61-2a-5, as last amended by Laws of Utah 2009, Chapter
             192      352)
             193          61-2f-507, (Renumbered from 61-2a-6, as last amended by Laws of Utah 2009, Chapter
             194      352)
             195          61-2f-508, (Renumbered from 61-2a-7, as last amended by Laws of Utah 2009, Chapter
             196      352)
             197          61-2f-509, (Renumbered from 61-2a-8, as last amended by Laws of Utah 1983, Chapter
             198      256)
             199          61-2f-510, (Renumbered from 61-2a-9, as last amended by Laws of Utah 2009, Chapter
             200      352)
             201          61-2f-511, (Renumbered from 61-2a-11, as last amended by Laws of Utah 2009,
             202      Chapter 352)
             203          61-2f-512, (Renumbered from 61-2a-10, as last amended by Laws of Utah 1983,
             204      Chapter 256)
             205      REPEALS:
             206          61-2-4, as last amended by Laws of Utah 1996, Chapter 102
             207          61-2b-11, as last amended by Laws of Utah 1999, Chapter 117
             208          61-2b-16, as last amended by Laws of Utah 1999, Chapter 117
             209          61-2c-207, as last amended by Laws of Utah 2009, Chapter 372
             210          61-2c-208, as last amended by Laws of Utah 2009, Chapters 183 and 372
             211      Utah Code Sections Affected by Coordination Clause:


             212          61-2c-102, as last amended by Laws of Utah 2009, Chapter 372
             213          61-2f-102, Utah Code Annotated 1953
             214     
             215      Be it enacted by the Legislature of the state of Utah:
             216          Section 1. Section 10-3-1110 is amended to read:
             217           10-3-1110. Exemption from state licensure by Division of Real Estate.
             218          In accordance with Section [ 61-2-3 ] 61-2f-202 , an employee of a municipality is
             219      exempt from licensure under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate
             220      Licensing and Practices Act:
             221          (1) when engaging in an act on behalf of the municipality in accordance with:
             222          (a) this title; or
             223          (b) Title 11, Cities, Counties, and Local Taxing Units; and
             224          (2) if the act described in Subsection (1) is related to one or more of the following:
             225          (a) acquiring real [property] estate, including by eminent domain;
             226          (b) disposing of real [property] estate;
             227          (c) providing services that constitute property management, as defined in Section
             228      [ 61-2-2 ] 61-2f-102 ; or
             229          (d) leasing real [property] estate.
             230          Section 2. Section 13-25a-111 is amended to read:
             231           13-25a-111. Exemptions.
             232          Notwithstanding any other provision of this chapter, Sections 13-25a-103 and
             233      13-25a-108 do not apply to:
             234          (1) a telephone call made for a charitable purpose as defined in Section 13-22-2 ;
             235          (2) a charitable solicitation as defined in Section 13-22-2 ; or
             236          (3) a person who holds a license or registration:
             237          (a) under Title 31A, Insurance Code;
             238          (b) issued by the Division of Real Estate established in Section [ 61-2-5 ] 61-2-201 ; or
             239          (c) issued by the National Association of Securities Dealers.
             240          Section 3. Section 16-11-2 is amended to read:
             241           16-11-2. Definitions.
             242          As used in this chapter:


             243          (1) "Filed" means the division has received and approved, as to form, a document
             244      submitted under the provisions of this chapter, and has marked on the face of the document a
             245      stamp or seal indicating the time of day and date of approval, the name of the division, the
             246      division director's signature and division seal, or facsimiles of the signature or seal.
             247          (2) "Professional corporation" means a corporation organized under this chapter.
             248          (3) "Professional service" means the personal service rendered by:
             249          (a) a physician, surgeon, or doctor of medicine holding a license under Title 58,
             250      Chapter 67, Utah Medical Practice Act, and any subsequent laws regulating the practice of
             251      medicine;
             252          (b) a doctor of dentistry holding a license under Title 58, Chapter 69, Dentist and
             253      Dental Hygienist Practice Act, and any subsequent laws regulating the practice of dentistry;
             254          (c) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
             255      Utah Osteopathic Medical Practice Act, and any subsequent laws regulating the practice of
             256      osteopathy;
             257          (d) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
             258      Practice Act, and any subsequent laws regulating the practice of chiropractic;
             259          (e) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
             260      Physician Licensing Act, and any subsequent laws regulating the practice of podiatry;
             261          (f) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry
             262      Practice Act, and any subsequent laws regulating the practice of optometry;
             263          (g) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice Act,
             264      and any subsequent laws regulating the practice of veterinary medicine;
             265          (h) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
             266      and any subsequent laws regulating the practice of architecture;
             267          (i) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
             268      Accountant Licensing Act, and any subsequent laws regulating the practice of public
             269      accounting;
             270          (j) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician
             271      Practice Act, and any subsequent laws regulating the practice of naturopathy;
             272          (k) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice Act,
             273      and any subsequent laws regulating the practice of pharmacy;


             274          (l) an attorney granted the authority to practice law by:
             275          (i) the Utah Supreme Court; or
             276          (ii) the Supreme Court, other court, agency, instrumentality, or regulating board that
             277      licenses or regulates the authority to practice law in any state or territory of the United States
             278      other than Utah;
             279          (m) a professional engineer registered under Title 58, Chapter 22, Professional
             280      Engineers and Professional Land Surveyors Licensing Act;
             281          (n) a [real estate broker or real estate] principal broker, associate broker, or sales agent
             282      holding a license under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing
             283      and Practices Act, and any subsequent laws regulating the selling, exchanging, purchasing,
             284      renting, or leasing of real estate;
             285          (o) a psychologist holding a license under Title 58, Chapter 61, Psychologist Licensing
             286      Act, and any subsequent laws regulating the practice of psychology;
             287          (p) a clinical or certified social worker holding a license under Title 58, Chapter 60,
             288      Part 2, Social Worker Licensing Act, and any subsequent laws regulating the practice of social
             289      work;
             290          (q) a physical therapist holding a license under Title 58, Chapter 24b, Physical Therapy
             291      Practice Act, and any subsequent laws regulating the practice of physical therapy;
             292          (r) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
             293      Chapter 44a, Nurse Midwife Practice Act; [or]
             294          (s) a landscape architect licensed under Title 58, Chapter 53, Landscape Architects
             295      Licensing Act, and any subsequent laws regulating landscape architects[.]; or
             296          (t) an individual licensed, certified, or registered under Title 61, Chapter 2b, Real
             297      Estate Appraiser Licensing and Certification Act, and any subsequent laws regulating the
             298      practice of appraising real estate.
             299          (4) "Regulating board" means the board that is charged with the licensing and
             300      regulation of the practice of the profession which the professional corporation is organized to
             301      render. The definitions of Title 16, Chapter 10a, Utah Revised Business Corporation Act,
             302      apply to this chapter unless the context clearly indicates that a different meaning is intended.
             303          Section 4. Section 17-50-106 is amended to read:
             304           17-50-106. Exemption from state licensure by Division of Real Estate.


             305          In accordance with Section [ 61-2-3 ] 61-2f-202 , an employee of a county is exempt from
             306      licensure under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and
             307      Practices Act:
             308          (1) when engaging in an act on behalf of the county in accordance with:
             309          (a) this title; or
             310          (b) Title 11, Cities, Counties, and Local Taxing Units; and
             311          (2) if the act described in Subsection (1) is related to one or more of the following:
             312          (a) acquiring real [property] estate, including by eminent domain;
             313          (b) disposing of real [property] estate;
             314          (c) providing services that constitute property management, as defined in Section
             315      [ 61-2-2 ] 61-2f-102 ; or
             316          (d) leasing real [property] estate.
             317          Section 5. Section 31A-2-402 is amended to read:
             318           31A-2-402. Definitions.
             319          As used in this part:
             320          (1) "Commission" means the Title and Escrow Commission created in Section
             321      31A-2-403 .
             322          (2) "Concurrence" means the entities given a concurring role must jointly agree for the
             323      action to be taken.
             324          (3) "Dual licensed title licensee" means a title licensee who holds:
             325          (a) a producer license as a title licensee; and
             326          (b) a license or certificate under:
             327          (i) Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and
             328      Practices Act;
             329          (ii) Title 61, Chapter 2b, Real Estate Appraiser Licensing and Certification Act; or
             330          (iii) Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act.
             331          (4) "Real Estate Commission" means the Real Estate Commission created in Section
             332      [ 61-2-5.5 ] 61-2f-103 .
             333          (5) "Title licensee" means a person licensed under this title as:
             334          (a) an agency with a title insurance line of authority;
             335          (b) a producer with:


             336          (i) a general title insurance line of authority; or
             337          (ii) a specific category of authority for title insurance; or
             338          (c) a title insurance adjuster.
             339          Section 6. Section 34-44-102 is amended to read:
             340           34-44-102. Definitions.
             341          As used in this chapter:
             342          (1) "Business relationship" means an agreement that governs the relationship of
             343      principal and sales representative.
             344          (2) "Commission" means:
             345          (a) compensation:
             346          (i) that accrues to a sales representative;
             347          (ii) for payment by a principal; and
             348          (iii) at a rate expressed as a percentage of the dollar amount of sales, orders, or profits;
             349      or
             350          (b) any other method of compensation agreed to between a sales representative and a
             351      principal including:
             352          (i) fees for services; and
             353          (ii) a retainer.
             354          (3) "Principal" means a person who:
             355          (a) engages in any of the following activities with regard to a product or service:
             356          (i) manufactures;
             357          (ii) produces;
             358          (iii) imports;
             359          (iv) sells; or
             360          (v) distributes;
             361          (b) establishes a business relationship with a sales representative to solicit orders for a
             362      product or a service described in Subsection (3)(a); and
             363          (c) agrees to compensate a sales representative, in whole or in part, by commission.
             364          (4) (a) Except as provided in Subsection (4)(b), "sales representative" means a person
             365      who enters into a business relationship with a principal:
             366          (i) to solicit orders for a product or a service described in Subsection (3)(a); and


             367          (ii) under which the person is compensated, in whole or in part, by commission.
             368          (b) "Sales representative" does not include:
             369          (i) an employee of a principal;
             370          (ii) a person licensed under Title 31A, Insurance Code;
             371          (iii) a person licensed under Title 41, Chapter 3, Part 2, Licensing;
             372          (iv) a person licensed under Title 61, Chapter [2, Division of Real Estate] 2f, Real
             373      Estate Licensing and Practices Act;
             374          (v) a person who provides a product or service under a business relationship with a
             375      principal that is incident to the purchase or sale of real property; or
             376          (vi) a person who places an order or purchases a product or service for that person's
             377      own account for resale.
             378          (5) "Terminates" or "termination" means the end of a business relationship between a
             379      sales representative and a principal, whether by:
             380          (a) agreement;
             381          (b) expiration of a time period; or
             382          (c) exercise of a right of termination by either the principal or the sales representative.
             383          Section 7. Section 34A-2-104 is amended to read:
             384           34A-2-104. "Employee," "worker," and "operative" defined -- Specific
             385      circumstances -- Exemptions.
             386          (1) As used in this chapter and Chapter 3, Utah Occupational Disease Act, "employee,"
             387      "worker," and "operative" mean:
             388          (a) (i) an elective or appointive officer and any other person:
             389          (A) in the service of:
             390          (I) the state;
             391          (II) a county, city, or town within the state; or
             392          (III) a school district within the state;
             393          (B) serving the state, or any county, city, town, or school district under:
             394          (I) an election;
             395          (II) appointment; or
             396          (III) any contract of hire, express or implied, written or oral; and
             397          (ii) including:


             398          (A) an officer or employee of the state institutions of learning; and
             399          (B) a member of the National Guard while on state active duty; and
             400          (b) a person in the service of any employer, as defined in Section 34A-2-103 , who
             401      employs one or more workers or operatives regularly in the same business, or in or about the
             402      same establishment:
             403          (i) under any contract of hire:
             404          (A) express or implied; and
             405          (B) oral or written;
             406          (ii) including aliens and minors, whether legally or illegally working for hire; and
             407          (iii) not including any person whose employment:
             408          (A) is casual; and
             409          (B) not in the usual course of the trade, business, or occupation of the employee's
             410      employer.
             411          (2) (a) Unless a lessee provides coverage as an employer under this chapter and
             412      Chapter 3, any lessee in mines or of mining property and each employee and sublessee of the
             413      lessee shall be:
             414          (i) covered for compensation by the lessor under this chapter and Chapter 3;
             415          (ii) subject to this chapter and Chapter 3; and
             416          (iii) entitled to the benefits of this chapter and Chapter 3, to the same extent as if the
             417      lessee, employee, or sublessee were employees of the lessor drawing the wages paid employees
             418      for substantially similar work.
             419          (b) The lessor may deduct from the proceeds of ores mined by the lessees an amount
             420      equal to the insurance premium for that type of work.
             421          (3) (a) A partnership or sole proprietorship may elect to include any partner of the
             422      partnership or owner of the sole proprietorship as an employee of the partnership or sole
             423      proprietorship under this chapter and Chapter 3.
             424          (b) If a partnership or sole proprietorship makes an election under Subsection (3)(a),
             425      the partnership or sole proprietorship shall serve written notice upon its insurance carrier
             426      naming the persons to be covered.
             427          (c) A partner of a partnership or owner of a sole proprietorship may not be considered
             428      an employee of the partner's partnership or the owner's sole proprietorship under this chapter or


             429      Chapter 3 until the notice described in Subsection (3)(b) is given.
             430          (d) For premium rate making, the insurance carrier shall assume the salary or wage of
             431      the partner or sole proprietor electing coverage under Subsection (3)(a) to be 100% of the
             432      state's average weekly wage.
             433          (4) (a) A corporation may elect not to include any director or officer of the corporation
             434      as an employee under this chapter and Chapter 3.
             435          (b) If a corporation makes an election under Subsection (4)(a), the corporation shall
             436      serve written notice upon its insurance carrier naming the persons to be excluded from
             437      coverage.
             438          (c) A director or officer of a corporation is considered an employee under this chapter
             439      and Chapter 3 until the notice described in Subsection (4)(b) is given.
             440          (5) As used in this chapter and Chapter 3, "employee," "worker," and "operative" do
             441      not include:
             442          (a) a [real estate] sales agent or [real estate] associate broker, as defined in Section
             443      [ 61-2-2 ] 61-2f-102 , who performs services in that capacity for a [real estate] principal broker
             444      if:
             445          (i) substantially all of the [real estate] sales agent's or [associated] associate broker's
             446      income for services is from real estate commissions; and
             447          (ii) [the services of the real estate sales agent or associated broker] the sales agent's or
             448      associate broker's services are performed under a written contract that provides that:
             449          (A) the real estate agent is an independent contractor; and
             450          (B) the [real estate] sales agent or [associated] associate broker is not to be treated as
             451      an employee for federal income tax purposes;
             452          (b) an offender performing labor under Section 64-13-16 or 64-13-19 , except as
             453      required by federal statute or regulation;
             454          (c) an individual who for an insurance producer, as defined in Section 31A-1-301 ,
             455      solicits, negotiates, places or procures insurance if:
             456          (i) substantially all of the individual's income from those services is from insurance
             457      commissions; and
             458          (ii) the services of the individual are performed under a written contract that states that
             459      the individual:


             460          (A) is an independent contractor;
             461          (B) is not to be treated as an employee for federal income tax purposes; and
             462          (C) can derive income from more than one insurance company;
             463          (d) notwithstanding Subsection 34A-2-103 (4), an individual who provides domestic
             464      work for a person if:
             465          (i) the person for whom the domestic work is being provided receives or is eligible to
             466      receive the domestic work under a state or federal program designed to pay the costs of
             467      domestic work to prevent the person from being placed in:
             468          (A) an institution; or
             469          (B) a more restrictive placement than where that person resides at the time the person
             470      receives the domestic work;
             471          (ii) the individual is paid by a person designated by the Secretary of the Treasury in
             472      accordance with Section 3504, Internal Revenue Code, as a fiduciary, agent, or other person
             473      that has the control, receipt, custody, or disposal of, or pays the wages of the individual; and
             474          (iii) the domestic work is performed under a written contract that notifies the
             475      individual that the individual is not an employee under this chapter or Chapter 3; or
             476          (e) subject to Subsections (6) and (7), an individual who:
             477          (i) (A) owns a motor vehicle; or
             478          (B) leases a motor vehicle to a motor carrier;
             479          (ii) personally operates the motor vehicle described in Subsection (5)(e)(i);
             480          (iii) operates the motor vehicle described in Subsection (5)(e)(i) under a written
             481      agreement with the motor carrier that states that the individual operates the motor vehicle as an
             482      independent contractor; and
             483          (iv) provides to the motor carrier at the time the written agreement described in
             484      Subsection (5)(e)(iii) is executed or as soon after the execution as provided by an insurer:
             485          (A) a copy of a workers' compensation coverage waiver issued pursuant to Section
             486      31A-22-1011 by an insurer to the individual; and
             487          (B) proof that the individual is covered by occupational accident related insurance.
             488          (6) An individual described in Subsection (5)(d) or (e) may become an employee under
             489      this chapter and Chapter 3 if the employer of the individual complies with:
             490          (a) this chapter and Chapter 3; and


             491          (b) commission rules.
             492          (7) For purposes of Subsection (5)(e):
             493          (a) "Motor carrier" means a person engaged in the business of transporting freight,
             494      merchandise, or other property by a commercial vehicle on a highway within this state.
             495          (b) "Motor vehicle" means a self-propelled vehicle intended primarily for use and
             496      operation on the highways, including a trailer or semitrailer designed for use with another
             497      motorized vehicle.
             498          (c) "Occupational accident related insurance" means insurance that provides the
             499      following coverage for an injury sustained in the course of working under a written agreement
             500      described in Subsection (5)(e)(iii):
             501          (i) disability benefits;
             502          (ii) death benefits;
             503          (iii) medical expense benefits, which include:
             504          (A) hospital coverage;
             505          (B) surgical coverage;
             506          (C) prescription drug coverage; and
             507          (D) dental coverage.
             508          Section 8. Section 41-1a-422 is amended to read:
             509           41-1a-422. Support special group license plates -- Contributor -- Voluntary
             510      contribution collection procedures.
             511          (1) As used in this section:
             512          (a) (i) Except as provided in Subsection (1)(a)(ii), "contributor" means a person who
             513      has donated or in whose name at least $25 has been donated to:
             514          (A) a scholastic scholarship fund of a single named institution;
             515          (B) the Department of Veterans' Affairs for veterans' programs;
             516          (C) the Division of Wildlife Resources for the Wildlife Resources Account created in
             517      Section 23-14-13 , for conservation of wildlife and the enhancement, preservation, protection,
             518      access, and management of wildlife habitat;
             519          (D) the Department of Agriculture and Food for the benefit of conservation districts;
             520          (E) the Division of Parks and Recreation for the benefit of snowmobile programs;
             521          (F) the Guardian Ad Litem Services Account and the Children's Museum of Utah, with


             522      the donation evenly divided between the two;
             523          (G) the Boy Scouts of America for the benefit of a Utah Boy Scouts of America
             524      council as specified by the contributor;
             525          (H) No More Homeless Pets in Utah for distribution to organizations or individuals
             526      that provide spay and neuter programs that subsidize the sterilization of domestic animals;
             527          (I) the Utah Alliance of Boys and Girls Clubs, Inc. to provide and enhance youth
             528      development programs;
             529          (J) the Utah Association of Public School Foundations to support public education;
             530          (K) the Utah Housing Opportunity Restricted Account created in Section [ 61-2-28 ]
             531      61-2-204 to assist people who have severe housing needs;
             532          (L) the Public Safety Honoring Heroes Restricted Account created in Section 53-1-118
             533      to support the families of fallen Utah Highway Patrol troopers and other Department of Public
             534      Safety employees;
             535          (M) the Division of Parks and Recreation for distribution to organizations that provide
             536      support for Zion National Park;
             537          (N) the Firefighter Support Restricted Account created in Section 53-7-109 to support
             538      firefighter organizations; or
             539          (O) the Share the Road Bicycle Support Restricted Account created in Section
             540      72-2-127 to support bicycle operation and safety awareness programs.
             541          (ii) (A) For a veterans' special group license plate, "contributor" means a person who
             542      has donated or in whose name at least a $25 donation at the time of application and $10 annual
             543      donation thereafter has been made.
             544          (B) For a Utah Housing Opportunity special group license plate, "contributor" means a
             545      person who:
             546          (I) has donated or in whose name at least $30 has been donated at the time of
             547      application and annually after the time of application; and
             548          (II) is a member of a trade organization for real estate licensees that has more than
             549      15,000 Utah members.
             550          (C) For an Honoring Heroes special group license plate, "contributor" means a person
             551      who has donated or in whose name at least $35 has been donated at the time of application and
             552      annually thereafter.


             553          (D) For a firefighter support special group license plate, "contributor" means a person
             554      who:
             555          (I) has donated or in whose name at least $15 has been donated at the time of
             556      application and annually after the time of application; and
             557          (II) is a currently employed, volunteer, or retired firefighter.
             558          (b) "Institution" means a state institution of higher education as defined under Section
             559      53B-3-102 or a private institution of higher education in the state accredited by a regional or
             560      national accrediting agency recognized by the United States Department of Education.
             561          (2) (a) An applicant for original or renewal collegiate special group license plates under
             562      Subsection (1)(a)(i) must be a contributor to the institution named in the application and
             563      present the original contribution verification form under Subsection (2)(b) or make a
             564      contribution to the division at the time of application under Subsection (3).
             565          (b) An institution with a support special group license plate shall issue to a contributor
             566      a verification form designed by the commission containing:
             567          (i) the name of the contributor;
             568          (ii) the institution to which a donation was made;
             569          (iii) the date of the donation; and
             570          (iv) an attestation that the donation was for a scholastic scholarship.
             571          (c) The state auditor may audit each institution to verify that the moneys collected by
             572      the institutions from contributors are used for scholastic scholarships.
             573          (d) After an applicant has been issued collegiate license plates or renewal decals, the
             574      commission shall charge the institution whose plate was issued, a fee determined in accordance
             575      with Section 63J-1-504 for management and administrative expenses incurred in issuing and
             576      renewing the collegiate license plates.
             577          (e) If the contribution is made at the time of application, the contribution shall be
             578      collected, treated, and deposited as provided under Subsection (3).
             579          (3) (a) An applicant for original or renewal support special group license plates under
             580      this section must be a contributor to the sponsoring organization associated with the license
             581      plate.
             582          (b) This contribution shall be:
             583          (i) unless collected by the named institution under Subsection (2), collected by the


             584      division;
             585          (ii) considered a voluntary contribution for the funding of the activities specified under
             586      this section and not a motor vehicle registration fee;
             587          (iii) deposited into the appropriate account less actual administrative costs associated
             588      with issuing the license plates; and
             589          (iv) for a firefighter special group license plate, deposited into the appropriate account
             590      less:
             591          (A) the costs of reordering firefighter special group license plate decals; and
             592          (B) the costs of replacing recognition special group license plates with new license
             593      plates under Subsection 41-1a-1211 (13).
             594          (c) The donation described in Subsection (1)(a) must be made in the 12 months prior to
             595      registration or renewal of registration.
             596          (d) The donation described in Subsection (1)(a) shall be a one-time donation made to
             597      the division when issuing original:
             598          (i) snowmobile license plates; or
             599          (ii) conservation license plates.
             600          (4) Veterans' license plates shall display one of the symbols representing the Army,
             601      Navy, Air Force, Marines, Coast Guard, or American Legion.
             602          Section 9. Section 48-2c-1502 is amended to read:
             603           48-2c-1502. Definitions.
             604          As used in this part:
             605          (1) "Professional services company" means a limited liability company organized
             606      under this part to render professional services.
             607          (2) "Professional services" means the personal services rendered by:
             608          (a) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
             609      and any subsequent laws regulating the practice of architecture;
             610          (b) an attorney granted the authority to practice law by the:
             611          (i) Supreme Court of Utah; or
             612          (ii) the Supreme Court, other court, agency, instrumentality, or regulating board that
             613      licenses or regulates the authority to practice law in any state or territory of the United States
             614      other than Utah;


             615          (c) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
             616      Practice Act, and any subsequent laws regulating the practice of chiropractic;
             617          (d) a doctor of dentistry holding a license under Title 58, Chapter 69, [Dentists] Dentist
             618      and Dental [Hygienists] Hygienist Practice Act, and any subsequent laws, regulating the
             619      practice of dentistry;
             620          (e) a professional engineer registered under Title 58, Chapter 22, Professional
             621      Engineers and Professional Land Surveyors Licensing Act;
             622          (f) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician
             623      Practice Act, and any subsequent laws regulating the practice of naturopathy;
             624          (g) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
             625      Chapter 44a, Nurse Midwife Practice Act;
             626          (h) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry
             627      Practice Act, and any subsequent laws regulating the practice of optometry;
             628          (i) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
             629      Utah Osteopathic Medical Practice Act, and any subsequent laws regulating the practice of
             630      osteopathy;
             631          (j) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice Act,
             632      and any subsequent laws regulating the practice of pharmacy;
             633          (k) a physician, surgeon, or doctor of medicine holding a license under Title 58,
             634      Chapter 67, Utah Medical Practice Act, and any subsequent laws regulating the practice of
             635      medicine;
             636          (l) a physical therapist holding a license under Title 58, Chapter 24b, Physical Therapy
             637      Practice Act, and any subsequent laws regulating the practice of physical therapy;
             638          (m) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
             639      Physician Licensing Act, and any subsequent laws regulating the practice of podiatry;
             640          (n) a psychologist holding a license under Title 58, Chapter 61, Psychologist Licensing
             641      Act, and any subsequent laws regulating the practice of psychology;
             642          (o) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
             643      Accountant Licensing Act, and any subsequent laws regulating the practice of public
             644      accounting;
             645          (p) a [real estate broker or real estate] principal broker, associate broker, or sales agent


             646      holding a license under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing
             647      and Practices Act, and any subsequent laws regulating the sale, exchange, purchase, rental, or
             648      leasing of real estate;
             649          (q) a clinical or certified social worker holding a license under Title 58, Chapter 60,
             650      Part 2, Social Worker Licensing Act, and any subsequent laws regulating the practice of social
             651      work;
             652          (r) a mental health therapist holding a license under Title 58, Chapter 60, Mental
             653      Health Professional Practice Act, and any subsequent laws regulating the practice of mental
             654      health therapy; [and]
             655          (s) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice Act,
             656      and any subsequent laws regulating the practice of veterinary medicine[.]; or
             657          (t) an individual licensed, certified, or registered under Title 61, Chapter 2b, Real
             658      Estate Appraiser Licensing and Certification Act, and any subsequent laws regulating the
             659      practice of appraising real estate.
             660          (3) "Regulating board" means the board or agency organized pursuant to state law that
             661      is charged with the licensing and regulation of the practice of the profession that a company is
             662      organized to render.
             663          Section 10. Section 57-11-2 is amended to read:
             664           57-11-2. Definitions.
             665          As used in this chapter:
             666          (1) (a) "Disposition" includes sale, lease, assignment, award by lottery, or any other
             667      transaction concerning a subdivision, if undertaken for gain or profit.
             668          (b) "Disposition" does not include the sale or lease of land held by railroads for right of
             669      way if the land is within 400 feet of the center line of a railroad tract.
             670          (2) "Division" means the Division of Real Estate created in Section [ 61-2-5 ] 61-2-201 .
             671          (3) "Federal act" means the federal Interstate Land Sales Full Disclosure Act, 15
             672      U.S.C. Sec. 1701, et seq., or any successor federal act.
             673          (4) (a) "Industrial park" means a subdivision or subdivided lands offered as a part of a
             674      common promotional plan of advertising and sale zoned for office, manufacturing,
             675      warehousing, commercial, industrial, distribution, or wholesale use and utilized for one or
             676      more of those purposes.


             677          (b) "Industrial park" does not include land offered for sale that is designed or intended
             678      to be used for recreational, residential, including multiple family dwellings, or agricultural
             679      purposes.
             680          (5) "Offer" includes an inducement, solicitation, or attempt to encourage a person to
             681      acquire an interest in land if undertaken for gain or profit.
             682          (6) "Person" includes:
             683          (a) a business trust;
             684          (b) an estate;
             685          (c) a trust;
             686          (d) a partnership;
             687          (e) an unincorporated association;
             688          (f) two or more of any entity having a joint or common interest; or
             689          (g) any other legal or commercial entity.
             690          (7) "Purchaser" means a person who acquires or attempts to acquire or succeeds to an
             691      interest in land.
             692          (8) "Residential building" means a structure intended for occupation as a residence
             693      which, at the time of an offer or disposition of the unit on which it is situated, or on which
             694      there is a legal obligation on the part of the seller to complete construction of it within two
             695      years from date of disposition, has, or if completed would have, ready access to water, gas,
             696      electricity, and roads.
             697          (9) "Subdivider" means:
             698          (a) an owner of an interest in subdivided lands who offers the subdivided lands for
             699      disposition; or
             700          (b) a principal agent of an owner of an interest in subdivided lands if the owner is
             701      inactive.
             702          (10) (a) "Subdivision" and "subdivided lands" means land that is divided or is proposed
             703      to be divided for the purpose of disposition into 10 or more units including land, whether
             704      contiguous or not, if 10 or more units are offered as a part of a common promotional plan of
             705      advertising and sale.
             706          (b) If a subdivision is offered by a developer or group of developers, and the land is
             707      contiguous or is known, designated, or advertised as a common tract or by a common name,


             708      that land is presumed, without regard to the number of units covered by each individual
             709      offering, to be part of a common promotional plan.
             710          (11) "Unit" includes a lot, parcel, or other interest in land separately offered for
             711      disposition.
             712          Section 11. Section 57-11-14 is amended to read:
             713           57-11-14. Revocation, suspension, or denial of registration -- Grounds --
             714      Suspension or revocation of real estate license.
             715          (1) (a) If the division makes a written finding of fact that a subdivider engages in one
             716      or more acts described in Subsection (1)(b), the division may:
             717          (i) deny an application for registration;
             718          (ii) revoke, suspend, or deny reissuance of a registration; or
             719          (iii) impose a civil penalty not to exceed the greater of:
             720          (A) $2,500 for each violation; or
             721          (B) the amount of any gain or economic benefit derived from each violation.
             722          (b) Subsection (1)(a) applies if the division makes a written finding of fact that a
             723      subdivider:
             724          (i) fails to comply with the terms of a cease and desist order;
             725          (ii) is convicted in a court prior or subsequent to the filing of the application for
             726      registration of a crime involving:
             727          (A) fraud;
             728          (B) deception;
             729          (C) false pretenses;
             730          (D) misrepresentation;
             731          (E) false advertising; or
             732          (F) dishonest dealing in real estate transactions;
             733          (iii) is subject to an injunction or administrative order restraining a false or misleading
             734      promotional plan involving land dispositions;
             735          (iv) disposes of, conceals, or diverts funds or assets of any person so as to defeat the
             736      rights of subdivision purchasers;
             737          (v) fails to perform faithfully a stipulation or agreement made with the division as an
             738      inducement to:


             739          (A) grant a registration;
             740          (B) reinstate a registration;
             741          (C) revoke a cease and desist order; or
             742          (D) approve any promotional plan or public offering statement;
             743          (vi) makes an intentional misrepresentation, or conceals a material fact, in an
             744      application for registration;
             745          (vii) violates this chapter or the rules adopted under this chapter;
             746          (viii) directly or through an agent or employee knowingly engages in false, deceptive,
             747      or misleading advertising, promotional, or sales methods to offer or dispose of an interest in
             748      subdivided lands;
             749          (ix) engages in the offering of subdivided lands that has constituted or that may
             750      constitute a fraud upon purchasers or prospective purchasers of the subdivided lands; or
             751          (x) engages in a dishonest practice in any industry involving sales to consumers.
             752          (c) The division shall accompany with a finding of fact required by this Subsection (1)
             753      a concise and explicit statement of the underlying facts supporting the finding.
             754          (2) As an alternative to revoking the registration of a subdivider, the director may issue
             755      a cease and desist order if after notice and a hearing the director finds that the subdivider is
             756      guilty of a violation for which revocation may be ordered.
             757          (3) (a) The division shall suspend or revoke the license of a [real estate] principal
             758      broker, associate broker, or [real estate] sales agent who violates this chapter for the period of
             759      time the director determines to be justified under the circumstances.
             760          (b) A suspension or revocation under this section is in addition to any other penalty
             761      that may be imposed under this chapter, subject to [the provisions of] Section [ 61-2-12 ]
             762      61-2f-404 .
             763          Section 12. Section 57-19-14 is amended to read:
             764           57-19-14. Registration of salesperson.
             765          (1) Unless the transaction is exempt under Section 57-19-26 , it is unlawful for any
             766      person to act as a salesperson marketing a project in this state without first registering under
             767      this chapter as a salesperson.
             768          (2) The fee for registration as a salesperson is waived by the division for persons
             769      licensed by the division under Title 61, Chapter [2] 2f, Real Estate Licensing and Practices Act.


             770          Section 13. Section 57-21-2 is amended to read:
             771           57-21-2. Definitions.
             772          As used in this chapter:
             773          (1) "Aggrieved person" includes any person who:
             774          (a) claims to have been injured by a discriminatory housing practice; or
             775          (b) believes that the person will be injured by a discriminatory housing practice that is
             776      about to occur.
             777          (2) "Commission" means the Labor Commission.
             778          (3) "Complainant" means an aggrieved person, including the director, who has
             779      commenced a complaint with the division.
             780          (4) "Conciliation" means the attempted resolution of issues raised by a complaint of
             781      discriminatory housing practices by the investigation of the complaint through informal
             782      negotiations involving the complainant, the respondent, and the division.
             783          (5) "Conciliation agreement" means a written agreement setting forth the resolution of
             784      the issues in conciliation.
             785          (6) "Conciliation conference" means the attempted resolution of issues raised by a
             786      complaint or by the investigation of a complaint through informal negotiations involving the
             787      complainant, the respondent, and the division. The conciliation conference is not subject to
             788      Title 63G, Chapter 4, Administrative Procedures Act.
             789          (7) "Covered multifamily dwellings" means:
             790          (a) buildings consisting of four or more dwelling units if the buildings have one or
             791      more elevators; and
             792          (b) ground floor units in other buildings consisting of four or more dwelling units.
             793          (8) "Director" means the director of the division or a designee.
             794          (9) (a) "Disability" means a physical or mental impairment that substantially limits one
             795      or more of a person's major life activities, including a person having a record of such an
             796      impairment or being regarded as having such an impairment.
             797          (b) "Disability" does not include current illegal use of, or addiction to, any federally
             798      controlled substance, as defined in Section 102 of the Controlled Substances Act, 21 U.S.C.
             799      Sec. 802.
             800          (10) "Discriminate" includes segregate or separate.


             801          (11) "Discriminatory housing practice" means an act that is unlawful under this
             802      chapter.
             803          (12) "Division" means the Division of Antidiscrimination and Labor established under
             804      the commission.
             805          (13) (a) "Dwelling" means any building or structure, or a portion of a building or
             806      structure, occupied as, or designed or intended for occupancy as, a residence of one or more
             807      families.
             808          (b) "Dwelling" also includes vacant land that is offered for sale or lease for the
             809      construction or location of a dwelling as described in Subsection (13)(a).
             810          (14) (a) "Familial status" means one or more individuals who have not attained the age
             811      of 18 years being domiciled with:
             812          (i) a parent or another person having legal custody of the individual or individuals; or
             813          (ii) the designee of the parent or other person having custody, with the written
             814      permission of the parent or other person.
             815          (b) The protections afforded against discrimination on the basis of familial status shall
             816      apply to any person who:
             817          (i) is pregnant;
             818          (ii) is in the process of securing legal custody of any individual who has not attained
             819      the age of 18 years; or
             820          (iii) is a single individual.
             821          (15) "National origin" means the place of birth of an individual or of any lineal
             822      ancestors.
             823          (16) "Person" includes one or more individuals, corporations, limited liability
             824      companies, partnerships, associations, labor organizations, legal representatives, mutual
             825      companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in
             826      cases under the United States Bankruptcy Code, receivers, and fiduciaries.
             827          (17) "Presiding officer" has the same meaning as provided in Section 63G-4-103 .
             828          (18) "Real estate broker" or "salesperson" means a principal [real estate] broker, an
             829      associate [real estate] broker, or a [real estate] sales agent as those terms are defined in Section
             830      [ 61-2-2 ] 61-2f-102 .
             831          (19) "Respondent" means a person against whom a complaint of housing


             832      discrimination has been initiated.
             833          (20) "Sex" means gender and includes pregnancy, childbirth, and disabilities related to
             834      pregnancy or childbirth.
             835          (21) "Source of income" means the verifiable condition of being a recipient of federal,
             836      state, or local assistance, including medical assistance, or of being a tenant receiving federal,
             837      state, or local subsidies, including rental assistance or rent supplements.
             838          Section 14. Section 57-23-5 is amended to read:
             839           57-23-5. License required.
             840          Except as provided by Section [ 61-2-3 ] 61-2f-202 , an individual may not offer, sell, or
             841      otherwise dispose of a cooperative interest in this state unless [he] the individual is licensed by
             842      the division under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and
             843      Practices Act, as a principal [real estate] broker, associate [real estate] broker, or [real estate]
             844      sales agent.
             845          Section 15. Section 57-27-102 is amended to read:
             846           57-27-102. Definitions.
             847          As used in this chapter:
             848          (1) "Contaminated" or "contamination" is as defined in Section 19-6-902 .
             849          (2) "Decontaminated" or "decontamination" is as defined in Section 19-6-902 .
             850          (3) (a) "Owner" means the holder of a legal or equitable title or interest in real
             851      property.
             852          (b) "Owner" includes a shareholder, partner, operator, or other legal entity.
             853          (4) "Real estate professional" means a licensee under Title 61, Chapter [2, Division of
             854      Real Estate] 2f, Real Estate Licensing and Practices Act.
             855          Section 16. Section 58-56-16 is amended to read:
             856           58-56-16. Registration of dealers -- Bonding requirements -- Renewal --
             857      Exemptions -- Discipline.
             858          (1) Each person engaged in the sale of factory built housing in the state, except as
             859      provided in Subsection (4), shall register with the division as a dealer.
             860          (2) Each applicant for registration under this section shall:
             861          (a) submit an application in a form prescribed by the division;
             862          (b) pay a fee determined by the department under Section 63J-1-504 ; and


             863          (c) provide the division with a registration bond in accordance with rules established
             864      by the division.
             865          (3) (a) The division shall issue each registration under this section in accordance with a
             866      two-year renewal cycle established by rule.
             867          (b) The division may by rule extend or shorten a renewal cycle by as much as one year
             868      to stagger the renewal cycles it administers.
             869          (c) Each registration under this section automatically expires on the expiration date on
             870      the certificate of registration unless the registrant renews it in accordance with Section
             871      58-1-308 .
             872          (4) Subsection (1) does not apply to:
             873          (a) a person not regularly engaged in the sale of factory built housing who is selling a
             874      unit the person owns for the person's own account;
             875          (b) a principal broker licensed under Title 61, Chapter [2, Division of Real Estate] 2f,
             876      Real Estate Licensing and Practices Act; or
             877          (c) a sales agent or associate broker licensed under Title 61, Chapter [2, Division of
             878      Real Estate] 2f, Real Estate Licensing and Practices Act, who sells factory built housing as an
             879      agent for, and under the supervision of, the [licensed] principal broker with whom the sales
             880      agent or associate broker is affiliated.
             881          (5) Grounds for refusing to issue a registration, for refusing to renew a registration, for
             882      revoking, suspending, restricting, or placing on probation a registration, for issuing a public or
             883      private reprimand to a registrant, and for issuing a cease and desist order shall be in accordance
             884      with Section 58-1-401 .
             885          Section 17. Section 61-1-13 is amended to read:
             886           61-1-13. Definitions.
             887          (1) As used in this chapter:
             888          (a) "Affiliate" means a person that, directly or indirectly, through one or more
             889      intermediaries, controls or is controlled by, or is under common control with a person
             890      specified.
             891          (b) (i) "Agent" means an individual other than a broker-dealer who represents a
             892      broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities.
             893          (ii) "Agent" does not include an individual who represents:


             894          (A) an issuer, who receives no commission or other remuneration, directly or
             895      indirectly, for effecting or attempting to effect purchases or sales of securities in this state, and
             896      who effects transactions:
             897          (I) in securities exempted by Subsection 61-1-14 (1)(a), (b), (c), or (g);
             898          (II) exempted by Subsection 61-1-14 (2);
             899          (III) in a covered security as described in Sections 18(b)(3) and 18(b)(4)(D) of the
             900      Securities Act of 1933; or
             901          (IV) with existing employees, partners, officers, or directors of the issuer; or
             902          (B) a broker-dealer in effecting transactions in this state limited to those transactions
             903      described in Section 15(h)(2) of the Securities Exchange Act of 1934.
             904          (iii) A partner, officer, or director of a broker-dealer or issuer, or a person occupying a
             905      similar status or performing similar functions, is an agent only if the partner, officer, director,
             906      or person otherwise comes within the definition of "agent."
             907          (iv) "Agent" does not include a person described in Subsection (3).
             908          (c) (i) "Broker-dealer" means a person engaged in the business of effecting transactions
             909      in securities for the account of others or for the person's own account.
             910          (ii) "Broker-dealer" does not include:
             911          (A) an agent;
             912          (B) an issuer;
             913          (C) a depository institution or trust company;
             914          (D) a person who has no place of business in this state if:
             915          (I) the person effects transactions in this state exclusively with or through:
             916          (Aa) the issuers of the securities involved in the transactions;
             917          (Bb) other broker-dealers;
             918          (Cc) a depository institution, whether acting for itself or as a trustee;
             919          (Dd) a trust company, whether acting for itself or as a trustee;
             920          (Ee) an insurance company, whether acting for itself or as a trustee;
             921          (Ff) an investment company, as defined in the Investment Company Act of 1940,
             922      whether acting for itself or as a trustee;
             923          (Gg) a pension or profit-sharing trust, whether acting for itself or as a trustee; or
             924          (Hh) another financial institution or institutional buyer, whether acting for itself or as a


             925      trustee; or
             926          (II) during any period of 12 consecutive months the person does not direct more than
             927      15 offers to sell or buy into this state in any manner to persons other than those specified in
             928      Subsection (1)(c)(ii)(D)(I), whether or not the offeror or an offeree is then present in this state;
             929          (E) a general partner who organizes and effects transactions in securities of three or
             930      fewer limited partnerships, of which the person is the general partner, in any period of 12
             931      consecutive months;
             932          (F) a person whose participation in transactions in securities is confined to those
             933      transactions made by or through a broker-dealer licensed in this state;
             934          (G) a person who is a [real estate] principal broker or associate broker licensed in this
             935      state and who effects transactions in a bond or other evidence of indebtedness secured by a real
             936      or chattel mortgage or deed of trust, or by an agreement for the sale of real estate or chattels, if
             937      the entire mortgage, deed [or] of trust, or agreement, together with all the bonds or other
             938      evidences of indebtedness secured thereby, is offered and sold as a unit;
             939          (H) a person effecting transactions in commodity contracts or commodity options;
             940          (I) a person described in Subsection (3); or
             941          (J) other persons as the division, by rule or order, may designate, consistent with the
             942      public interest and protection of investors, as not within the intent of this Subsection (1)(c).
             943          (d) "Buy" or "purchase" means a contract for purchase of, contract to buy, or
             944      acquisition of a security or interest in a security for value.
             945          (e) "Commission" means the Securities Commission created in Section 61-1-18.5 .
             946          (f) "Commodity" means, except as otherwise specified by the division by rule:
             947          (i) an agricultural, grain, or livestock product or byproduct, except real property or a
             948      timber, agricultural, or livestock product grown or raised on real property and offered or sold
             949      by the owner or lessee of the real property;
             950          (ii) a metal or mineral, including a precious metal, except a numismatic coin whose fair
             951      market value is at least 15% greater than the value of the metal it contains;
             952          (iii) a gem or gemstone, whether characterized as precious, semi-precious, or
             953      otherwise;
             954          (iv) a fuel, whether liquid, gaseous, or otherwise;
             955          (v) a foreign currency; and


             956          (vi) all other goods, articles, products, or items of any kind, except a work of art
             957      offered or sold by art dealers, at public auction or offered or sold through a private sale by the
             958      owner of the work.
             959          (g) (i) "Commodity contract" means an account, agreement, or contract for the
             960      purchase or sale, primarily for speculation or investment purposes and not for use or
             961      consumption by the offeree or purchaser, of one or more commodities, whether for immediate
             962      or subsequent delivery or whether delivery is intended by the parties, and whether characterized
             963      as a cash contract, deferred shipment or deferred delivery contract, forward contract, futures
             964      contract, installment or margin contract, leverage contract, or otherwise.
             965          (ii) A commodity contract offered or sold shall, in the absence of evidence to the
             966      contrary, be presumed to be offered or sold for speculation or investment purposes.
             967          (iii) (A) A commodity contract may not include a contract or agreement that requires,
             968      and under which the purchaser receives, within 28 calendar days from the payment in good
             969      funds any portion of the purchase price, physical delivery of the total amount of each
             970      commodity to be purchased under the contract or agreement.
             971          (B) A purchaser is not considered to have received physical delivery of the total
             972      amount of each commodity to be purchased under the contract or agreement when the
             973      commodity or commodities are held as collateral for a loan or are subject to a lien of any
             974      person when the loan or lien arises in connection with the purchase of each commodity or
             975      commodities.
             976          (h) (i) "Commodity option" means an account, agreement, or contract giving a party to
             977      the option the right but not the obligation to purchase or sell one or more commodities or one
             978      or more commodity contracts, or both whether characterized as an option, privilege, indemnity,
             979      bid, offer, put, call, advance guaranty, decline guaranty, or otherwise.
             980          (ii) "Commodity option" does not include an option traded on a national securities
             981      exchange registered:
             982          (A) with the Securities and Exchange Commission; or
             983          (B) on a board of trade designated as a contract market by the Commodity Futures
             984      Trading Commission.
             985          (i) "Depository institution" is as defined in Section 7-1-103 .
             986          (j) "Director" means the director of the division appointed in accordance with Section


             987      61-1-18 .
             988          (k) "Division" means the Division of Securities established by Section 61-1-18 .
             989          (l) "Executive director" means the executive director of the Department of Commerce.
             990          (m) "Federal covered adviser" means a person who:
             991          (i) is registered under Section 203 of the Investment Advisers Act of 1940; or
             992          (ii) is excluded from the definition of "investment adviser" under Section 202(a)(11) of
             993      the Investment Advisers Act of 1940.
             994          (n) "Federal covered security" means a security that is a covered security under Section
             995      18(b) of the Securities Act of 1933 or rules or regulations promulgated under Section 18(b) of
             996      the Securities Act of 1933.
             997          (o) "Fraud," "deceit," and "defraud" are not limited to their common-law meanings.
             998          (p) "Guaranteed" means guaranteed as to payment of principal or interest as to debt
             999      securities, or dividends as to equity securities.
             1000          (q) (i) "Investment adviser" means a person who:
             1001          (A) for compensation, engages in the business of advising others, either directly or
             1002      through publications or writings, as to the value of securities or as to the advisability of
             1003      investing in, purchasing, or selling securities; or
             1004          (B) for compensation and as a part of a regular business, issues or promulgates
             1005      analyses or reports concerning securities.
             1006          (ii) "Investment adviser" includes a financial planner or other person who:
             1007          (A) as an integral component of other financially related services, provides the
             1008      investment advisory services described in Subsection (1)(q)(i) to others for compensation and
             1009      as part of a business; or
             1010          (B) holds the person out as providing the investment advisory services described in
             1011      Subsection (1)(q)(i) to others for compensation.
             1012          (iii) "Investment adviser" does not include:
             1013          (A) an investment adviser representative;
             1014          (B) a depository institution or trust company;
             1015          (C) a lawyer, accountant, engineer, or teacher whose performance of these services is
             1016      solely incidental to the practice of the profession;
             1017          (D) a broker-dealer or its agent whose performance of these services is solely


             1018      incidental to the conduct of its business as a broker-dealer and who receives no special
             1019      compensation for the services;
             1020          (E) a publisher of a bona fide newspaper, news column, news letter, news magazine, or
             1021      business or financial publication or service, of general, regular, and paid circulation, whether
             1022      communicated in hard copy form, or by electronic means, or otherwise, that does not consist of
             1023      the rendering of advice on the basis of the specific investment situation of each client;
             1024          (F) a person who is a federal covered adviser;
             1025          (G) a person described in Subsection (3); or
             1026          (H) such other persons not within the intent of this Subsection (1)(q) as the division
             1027      may by rule or order designate.
             1028          (r) (i) "Investment adviser representative" means a partner, officer, director of, or a
             1029      person occupying a similar status or performing similar functions, or other individual, except
             1030      clerical or ministerial personnel, who:
             1031          (A) (I) is employed by or associated with an investment adviser who is licensed or
             1032      required to be licensed under this chapter; or
             1033          (II) has a place of business located in this state and is employed by or associated with a
             1034      federal covered adviser; and
             1035          (B) does any of the following:
             1036          (I) makes a recommendation or otherwise renders advice regarding securities;
             1037          (II) manages accounts or portfolios of clients;
             1038          (III) determines which recommendation or advice regarding securities should be given;
             1039          (IV) solicits, offers, or negotiates for the sale of or sells investment advisory services;
             1040      or
             1041          (V) supervises employees who perform any of the acts described in this Subsection
             1042      (1)(r)(i)(B).
             1043          (ii) "Investment adviser representative" does not include a person described in
             1044      Subsection (3).
             1045          (s) "Investment contract" includes:
             1046          (i) an investment in a common enterprise with the expectation of profit to be derived
             1047      through the essential managerial efforts of someone other than the investor; or
             1048          (ii) an investment by which:


             1049          (A) an offeree furnishes initial value to an offerer;
             1050          (B) a portion of the initial value is subjected to the risks of the enterprise;
             1051          (C) the furnishing of the initial value is induced by the offerer's promises or
             1052      representations that give rise to a reasonable understanding that a valuable benefit of some kind
             1053      over and above the initial value will accrue to the offeree as a result of the operation of the
             1054      enterprise; and
             1055          (D) the offeree does not receive the right to exercise practical or actual control over the
             1056      managerial decisions of the enterprise.
             1057          (t) "Isolated transaction" means not more than a total of two transactions that occur
             1058      anywhere during six consecutive months.
             1059          (u) (i) "Issuer" means a person who issues or proposes to issue a security or has
             1060      outstanding a security that it has issued.
             1061          (ii) With respect to a preorganization certificate or subscription, "issuer" means the one
             1062      or more promoters of the person to be organized.
             1063          (iii) "Issuer" means the one or more persons performing the acts and assuming duties
             1064      of a depositor or manager under the provisions of the trust or other agreement or instrument
             1065      under which the security is issued with respect to:
             1066          (A) interests in trusts, including collateral trust certificates, voting trust certificates, and
             1067      certificates of deposit for securities; or
             1068          (B) shares in an investment company without a board of directors.
             1069          (iv) With respect to an equipment trust certificate, a conditional sales contract, or
             1070      similar securities serving the same purpose, "issuer" means the person by whom the equipment
             1071      or property is to be used.
             1072          (v) With respect to interests in partnerships, general or limited, "issuer" means the
             1073      partnership itself and not the general partner or partners.
             1074          (vi) With respect to certificates of interest or participation in oil, gas, or mining titles or
             1075      leases or in payment out of production under the titles or leases, "issuer" means the owner of
             1076      the title or lease or right of production, whether whole or fractional, who creates fractional
             1077      interests therein for the purpose of sale.
             1078          (v) (i) "Life settlement interest" means the entire interest or a fractional interest in any
             1079      of the following that is the subject of a life settlement:


             1080          (A) a policy; or
             1081          (B) the death benefit under a policy.
             1082          (ii) "Life settlement interest" does not include the initial purchase from the owner by a
             1083      life settlement provider.
             1084          (w) "Nonissuer" means not directly or indirectly for the benefit of the issuer.
             1085          (x) "Person" means:
             1086          (i) an individual;
             1087          (ii) a corporation;
             1088          (iii) a partnership;
             1089          (iv) a limited liability company;
             1090          (v) an association;
             1091          (vi) a joint-stock company;
             1092          (vii) a joint venture;
             1093          (viii) a trust where the interests of the beneficiaries are evidenced by a security;
             1094          (ix) an unincorporated organization;
             1095          (x) a government; or
             1096          (xi) a political subdivision of a government.
             1097          (y) "Precious metal" means the following, whether in coin, bullion, or other form:
             1098          (i) silver;
             1099          (ii) gold;
             1100          (iii) platinum;
             1101          (iv) palladium;
             1102          (v) copper; and
             1103          (vi) such other substances as the division may specify by rule.
             1104          (z) "Promoter" means a person who, acting alone or in concert with one or more
             1105      persons, takes initiative in founding or organizing the business or enterprise of a person.
             1106          (aa) (i) Except as provided in Subsection (1)(aa)(ii), "record" means information that
             1107      is:
             1108          (A) inscribed in a tangible medium; or
             1109          (B) (I) stored in an electronic or other medium; and
             1110          (II) retrievable in perceivable form.


             1111          (ii) This Subsection (1)(aa) does not apply when the context requires otherwise,
             1112      including when "record" is used in the following phrases:
             1113          (A) "of record";
             1114          (B) "official record"; or
             1115          (C) "public record."
             1116          (bb) (i) "Sale" or "sell" includes a contract for sale of, contract to sell, or disposition of,
             1117      a security or interest in a security for value.
             1118          (ii) "Offer" or "offer to sell" includes an attempt or offer to dispose of, or solicitation of
             1119      an offer to buy, a security or interest in a security for value.
             1120          (iii) The following are examples of the definitions in Subsection (1)(bb)(i) or (ii):
             1121          (A) a security given or delivered with or as a bonus on account of a purchase of a
             1122      security or any other thing, is part of the subject of the purchase, and is offered and sold for
             1123      value;
             1124          (B) a purported gift of assessable stock is an offer or sale as is each assessment levied
             1125      on the stock;
             1126          (C) an offer or sale of a security that is convertible into, or entitles its holder to acquire
             1127      or subscribe to another security of the same or another issuer is an offer or sale of that security,
             1128      and also an offer of the other security, whether the right to convert or acquire is exercisable
             1129      immediately or in the future;
             1130          (D) a conversion or exchange of one security for another constitutes an offer or sale of
             1131      the security received in a conversion or exchange, and the offer to buy or the purchase of the
             1132      security converted or exchanged;
             1133          (E) securities distributed as a dividend wherein the person receiving the dividend
             1134      surrenders the right, or the alternative right, to receive a cash or property dividend is an offer or
             1135      sale;
             1136          (F) a dividend of a security of another issuer is an offer or sale; or
             1137          (G) the issuance of a security under a merger, consolidation, reorganization,
             1138      recapitalization, reclassification, or acquisition of assets constitutes the offer or sale of the
             1139      security issued as well as the offer to buy or the purchase of a security surrendered in
             1140      connection therewith, unless the sole purpose of the transaction is to change the issuer's
             1141      domicile.


             1142          (iv) The terms defined in Subsections (1)(bb)(i) and (ii) do not include:
             1143          (A) a good faith gift;
             1144          (B) a transfer by death;
             1145          (C) a transfer by termination of a trust or of a beneficial interest in a trust;
             1146          (D) a security dividend not within Subsection (1)(bb)(iii)(E) or (F); or
             1147          (E) a securities split or reverse split.
             1148          (cc) "Securities Act of 1933," "Securities Exchange Act of 1934," and "Investment
             1149      Company Act of 1940" mean the federal statutes of those names as amended before or after the
             1150      effective date of this chapter.
             1151          (dd) "Securities Exchange Commission" means the United States Securities Exchange
             1152      Commission created by the Securities Exchange Act of 1934.
             1153          (ee) (i) "Security" means a:
             1154          (A) note;
             1155          (B) stock;
             1156          (C) treasury stock;
             1157          (D) bond;
             1158          (E) debenture;
             1159          (F) evidence of indebtedness;
             1160          (G) certificate of interest or participation in a profit-sharing agreement;
             1161          (H) collateral-trust certificate;
             1162          (I) preorganization certificate or subscription;
             1163          (J) transferable share;
             1164          (K) investment contract;
             1165          (L) burial certificate or burial contract;
             1166          (M) voting-trust certificate;
             1167          (N) certificate of deposit for a security;
             1168          (O) certificate of interest or participation in an oil, gas, or mining title or lease or in
             1169      payments out of production under such a title or lease;
             1170          (P) commodity contract or commodity option;
             1171          (Q) interest in a limited liability company;
             1172          (R) life settlement interest; or


             1173          (S) in general, an interest or instrument commonly known as a "security," or a
             1174      certificate of interest or participation in, temporary or interim certificate for, receipt for,
             1175      guarantee of, or warrant or right to subscribe to or purchase an item listed in Subsections
             1176      (1)(ee)(i)(A) through (R).
             1177          (ii) "Security" does not include:
             1178          (A) an insurance or endowment policy or annuity contract under which an insurance
             1179      company promises to pay money in a lump sum or periodically for life or some other specified
             1180      period;
             1181          (B) an interest in a limited liability company in which the limited liability company is
             1182      formed as part of an estate plan where all of the members are related by blood or marriage, or
             1183      the person claiming this exception can prove that all of the members are actively engaged in the
             1184      management of the limited liability company; or
             1185          (C) (I) a whole long-term estate in real property;
             1186          (II) an undivided fractionalized long-term estate in real property that consists of 10 or
             1187      fewer owners; or
             1188          (III) an undivided fractionalized long-term estate in real property that consists of more
             1189      than 10 owners if, when the real property estate is subject to a management agreement:
             1190          (Aa) the management agreement permits a simple majority of owners of the real
             1191      property estate to not renew or to terminate the management agreement at the earlier of the end
             1192      of the management agreement's current term, or 180 days after the day on which the owners
             1193      give notice of termination to the manager;
             1194          (Bb) the management agreement prohibits, directly or indirectly, the lending of the
             1195      proceeds earned from the real property estate or the use or pledge of its assets to a person or
             1196      entity affiliated with or under common control of the manager; and
             1197          (Cc) the management agreement complies with any other requirement imposed by rule
             1198      by the Real Estate Commission under Section [ 61-2-26 ] 61-2f-103 .
             1199          (iii) For purposes of Subsection (1)(ee)(ii)(B), evidence that members vote or have the
             1200      right to vote, or the right to information concerning the business and affairs of the limited
             1201      liability company, or the right to participate in management, may not establish, without more,
             1202      that all members are actively engaged in the management of the limited liability company.
             1203          (ff) "State" means a state, territory, or possession of the United States, the District of


             1204      Columbia, and Puerto Rico.
             1205          (gg) (i) "Undivided fractionalized long-term estate" means an ownership interest in real
             1206      property by two or more persons that is a:
             1207          (A) tenancy in common; or
             1208          (B) any other legal form of undivided estate in real property including:
             1209          (I) a fee estate;
             1210          (II) a life estate; or
             1211          (III) other long-term estate.
             1212          (ii) "Undivided fractionalized long-term estate" does not include a joint tenancy.
             1213          (hh) "Whole long-term estate" means a person owns or persons through joint tenancy
             1214      own real property through:
             1215          (i) a fee estate;
             1216          (ii) a life estate; or
             1217          (iii) other long-term estate.
             1218          (ii) "Working days" means 8 a.m. to 5 p.m., Monday through Friday, exclusive of legal
             1219      holidays listed in Section 63G-1-301 .
             1220          (2) A term not defined in this section shall have the meaning as established by division
             1221      rule. The meaning of a term neither defined in this section nor by rule of the division shall be
             1222      the meaning commonly accepted in the business community.
             1223          (3) (a) This Subsection (3) applies to:
             1224          (i) the offer or sale of a real property estate exempted from the definition of security
             1225      under Subsection (1)(ee)(ii)(C); or
             1226          (ii) the offer or sale of an undivided fractionalized long-term estate that is the offer of a
             1227      security.
             1228          (b) A person who, directly or indirectly receives compensation in connection with the
             1229      offer or sale as provided in this Subsection (3) of a real property estate is not an agent,
             1230      broker-dealer, investment adviser, or investment adviser representative under this chapter if
             1231      that person is licensed under Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and
             1232      Practices Act, as:
             1233          (i) a principal [real estate] broker;
             1234          (ii) an associate [real estate] broker; or


             1235          (iii) a [real estate] sales agent.
             1236          (4) The list of real property estates excluded from the definition of securities under
             1237      Subsection (1)(ee)(ii)(C) is not an exclusive list of real property estates or interests that are not
             1238      a security.
             1239          Section 18. Section 61-2-101 is enacted to read:
             1240     
CHAPTER 2. DIVISION OF REAL ESTATE

             1241     
Part 1. General Provisions

             1242          61-2-101. Title.
             1243          This chapter is known as the "Division of Real Estate."
             1244          Section 19. Section 61-2-102 is enacted to read:
             1245          61-2-102. Definitions.
             1246          As used in this chapter:
             1247          (1) "Department" means the Department of Commerce.
             1248          (2) "Director" means the director of the division appointed under Section 61-2-201 .
             1249          (3) "Division" means the Division of Real Estate created in Section 61-2-201 .
             1250          (4) "Executive director" means the executive director of the department appointed
             1251      under Section 13-1-3 .
             1252          Section 20. Section 61-2-201 , which is renumbered from Section 61-2-5 is renumbered
             1253      and amended to read:
             1254     
Part 2. Organization

             1255           [61-2-5].     61-2-201. Division of Real Estate created -- Director appointed --
             1256      Personnel.
             1257          (1) There is created within the [Department of Commerce] department a Division of
             1258      Real Estate. [It] The division is responsible for the administration and enforcement of:
             1259          (a) this chapter;
             1260          (b) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act;
             1261          (c) Title 57, Chapter 19, Timeshare and Camp Resort Act;
             1262          (d) Title 57, Chapter 23, Real Estate Cooperative Marketing Act;
             1263          [(e) Chapter 2a, Real Estate Recovery Fund Act;]
             1264          [(f)] (e) Chapter 2b, Real Estate Appraiser Licensing and Certification Act;
             1265          [(g)] (f) Chapter 2c, Utah Residential Mortgage Practices and Licensing Act; [and]


             1266          [(h)] (g) Chapter 2e, Appraisal Management Company Registration and Regulation
             1267      Act[.]; and
             1268          (h) Chapter 2f, Real Estate Licensing and Practices Act.
             1269          (2) The division is under the direction and control of a director appointed by the
             1270      executive director of the department with the approval of the governor. The director holds the
             1271      office of director at the pleasure of the governor.
             1272          (3) The director, with the approval of the executive director, may employ personnel
             1273      necessary to discharge the duties of the division at salaries to be fixed by the director according
             1274      to standards established by the Department of Administrative Services.
             1275          [(4) On or before October 1 of each year, the director shall, in conjunction with the
             1276      department, report to the governor and the Legislature concerning the division's work for the
             1277      preceding fiscal year ending June 30.]
             1278          [(5) The director, in conjunction with the executive director, shall prepare and submit
             1279      to the governor and the Legislature a budget for the fiscal year next following the convening of
             1280      the Legislature.]
             1281          Section 21. Section 61-2-202 is enacted to read:
             1282          61-2-202. Powers and duties of the director or division.
             1283          (1) On or before October 1 of each year, in conjunction with the department, the
             1284      director shall report to the governor and the Legislature concerning the division's work for the
             1285      fiscal year immediately preceding the report.
             1286          (2) In conjunction with the executive director, the director shall prepare and submit to
             1287      the governor and the Legislature a budget for the fiscal year that follows the convening of the
             1288      Legislature.
             1289          Section 22. Section 61-2-203 , which is renumbered from Section 61-2-5.1 is
             1290      renumbered and amended to read:
             1291           [61-2-5.1].     61-2-203. Adjudicative proceedings.
             1292          The [Division of Real Estate] division shall comply with [the procedures and
             1293      requirements of] Title 63G, Chapter 4, Administrative Procedures Act, in [its] an adjudicative
             1294      [proceedings] proceeding under a chapter the division administers.
             1295          Section 23. Section 61-2-204 , which is renumbered from Section 61-2-28 is
             1296      renumbered and amended to read:


             1297           [61-2-28].     61-2-204. Utah Housing Opportunity Restricted Account.
             1298          (1) For purposes of this section, "account" means the Utah Housing Opportunity
             1299      Restricted Account created by this section.
             1300          [(1)] (2) There is created in the General Fund a restricted account known as the "Utah
             1301      Housing Opportunity Restricted Account."
             1302          [(2)] (3) The account shall be funded by:
             1303          (a) contributions deposited into the [Utah Housing Opportunity Restricted Account]
             1304      account in accordance with Section 41-1a-422 ;
             1305          (b) private contributions; and
             1306          (c) donations or grants from public or private entities.
             1307          [(3) Funds] (4) Money in the account [are] is nonlapsing.
             1308          [(4)] (5) (a) The state treasurer shall invest [monies] money in the account according to
             1309      Title 51, Chapter 7, State Money Management Act.
             1310          (b) The Division of Finance shall deposit interest or other earnings derived from
             1311      investment of account [monies] money into the General Fund.
             1312          [(5)] (6) The Legislature shall appropriate money in the account to the division.
             1313          [(6)] (7) The division shall distribute the [funds] money in the account to one or more
             1314      charitable organizations that:
             1315          (a) [qualify as being] are tax exempt under Section 501(c)(3), Internal Revenue Code;
             1316      and
             1317          (b) have as a primary part of their mission to provide support to organizations that
             1318      create affordable housing for those in severe need.
             1319          [(7)] (8) The division may [only consider proposals that are] consider a proposal only if
             1320      it is:
             1321          (a) proposed by an organization [under] described in Subsection [(6)] (7); and
             1322          (b) designed to provide support to organizations that create affordable housing for
             1323      those in severe need.
             1324          [(8)] (9) (a) An organization described in Subsection [(6)] (7) may apply to the division
             1325      to receive a distribution in accordance with Subsection [(6)] (7).
             1326          (b) An organization that receives a distribution from the division in accordance with
             1327      Subsection [(6)] (7) shall expend the distribution only to provide support to organizations that


             1328      create affordable housing for those in severe need.
             1329          [(9)] (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             1330      Act, the division shall make rules providing procedures for an organization to apply to receive
             1331      [funds] money under this section.
             1332          Section 24. Section 61-2b-2 is amended to read:
             1333           61-2b-2. Definitions.
             1334          (1) As used in this chapter:
             1335          (a) (i) "Appraisal" means an unbiased analysis, opinion, or conclusion relating to the
             1336      nature, quality, value, or utility of a specified interest in, or aspect of, identified real estate or
             1337      identified real property.
             1338          (ii) An appraisal is classified by the nature of the assignment as a valuation appraisal,
             1339      an analysis assignment, or a review assignment in accordance with the following definitions:
             1340          (A) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that
             1341      relates to the nature, quality, or utility of identified real estate or identified real property.
             1342          (B) "Review assignment" means an unbiased analysis, opinion, or conclusion that
             1343      forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis
             1344      assignment.
             1345          (C) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
             1346      estimates the value of an identified parcel of real estate or identified real property at a particular
             1347      point in time.
             1348          (b) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as
             1349      an Illinois not-for-profit corporation on November 30, 1987.
             1350          (c) (i) "Appraisal report" means a communication, written or oral, of an appraisal.
             1351          (ii) An appraisal report is classified by the nature of the assignment as a valuation
             1352      report, analysis report, or review report in accordance with the definitions provided in
             1353      Subsection (1)(a)(ii).
             1354          (iii) The testimony of a person relating to the person's analyses, conclusions, or
             1355      opinions concerning identified real estate or identified real property is considered to be an oral
             1356      appraisal report.
             1357          (d) "Appraisal Qualification Board" means the Appraisal Qualification Board of the
             1358      Appraisal Foundation.


             1359          [(d)] (e) "Board" means the Real Estate Appraiser Licensing and Certification Board
             1360      that is established in Section 61-2b-7 .
             1361          [(e)] (f) "Certified appraisal report" means a written or oral appraisal report that is
             1362      certified by a state-certified general appraiser or state-certified residential appraiser.
             1363          (g) "Concurrence" means that the entities that are given a concurring role jointly agree
             1364      to an action.
             1365          [(f)] (h) (i) (A) "Consultation service" means an engagement to provide a real estate
             1366      valuation service analysis, opinion, conclusion, or other service that does not fall within the
             1367      definition of appraisal.
             1368          (B) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
             1369      review assignment.
             1370          (ii) Regardless of the intention of the client or employer, if a person prepares an
             1371      unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
             1372      be an appraisal and not a consultation service.
             1373          [(g)] (i) "Contingent fee" means a fee or other form of compensation, payment of
             1374      which is dependent on or conditioned by:
             1375          (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
             1376      performing the analysis, opinion, or conclusion; or
             1377          (ii) achieving a result specified by the person requesting the analysis, opinion, or
             1378      conclusion.
             1379          [(h)] (j) "Division" means the Division of Real Estate of the Department of Commerce.
             1380          [(i)] (k) "Federally related transaction" means a real estate related transaction that is
             1381      required by federal law or by federal regulation to be supported by an appraisal prepared by:
             1382          (i) a state-licensed appraiser; or
             1383          (ii) a state-certified appraiser.
             1384          [(j)] (l) "Real estate" means an identified parcel or tract of land including
             1385      improvements if any.
             1386          [(k)] (m) "Real estate appraisal activity" means the act or process of making an
             1387      appraisal of real estate or real property and preparing an appraisal report.
             1388          [(l)] (n) "Real estate related transaction" means:
             1389          (i) the sale, lease, purchase, investment in, or exchange of real property or an interest in


             1390      real property, or the financing of such a transaction;
             1391          (ii) the refinancing of real property or an interest in real property; or
             1392          (iii) the use of real property or an interest in real property as security for a loan or
             1393      investment, including mortgage-backed securities.
             1394          [(m)] (o) "Real property" means one or more defined interests, benefits, or rights
             1395      inherent in the ownership of real estate.
             1396          [(n)] (p) "State-certified general appraiser" means a person who holds a current, valid
             1397      certification as a state-certified general appraiser issued under this chapter.
             1398          [(o)] (q) "State-certified residential appraiser" means a person who holds a current,
             1399      valid certification as a state-certified residential real estate appraiser issued under this chapter.
             1400          [(p)] (r) "State-licensed appraiser" means a person who holds a current, valid license as
             1401      a state-licensed appraiser issued under this chapter.
             1402          [(q)] (s) "Trainee" means an individual who:
             1403          (i) does not hold an appraiser license or appraiser certification issued under this
             1404      chapter;
             1405          (ii) works under the direct supervision of a state-certified appraiser to earn experience
             1406      for licensure; and
             1407          (iii) is registered as a trainee under this chapter.
             1408          [(r)] (t) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
             1409      conclusion relating to the nature, quality, value, or utility of identified real estate or identified
             1410      real property that is prepared by a person who is employed or retained to act, or would be
             1411      perceived by third parties or the public as acting, as a disinterested third party in rendering the
             1412      analysis, opinion, or conclusion.
             1413          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             1414      meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
             1415      Utah Administrative Rulemaking Act.
             1416          (b) If a term not defined in this section is not defined by rule, the term shall have the
             1417      meaning commonly accepted in the business community.
             1418          Section 25. Section 61-2b-3 is amended to read:
             1419           61-2b-3. License or certification required.
             1420          (1) Except as provided in Subsection (2) and in Subsection 61-2b-6 (2), it is unlawful


             1421      for [anyone] a person to prepare, for valuable consideration, an appraisal, an appraisal report, a
             1422      certified appraisal report, or perform a consultation service relating to real estate or real
             1423      property in this state without first being licensed or certified in accordance with this chapter.
             1424          (2) This section does not apply to:
             1425          (a) a [real estate broker] principal broker, associate broker, or sales agent as defined by
             1426      Section [ 61-2-2 ] 61-2f-102 licensed by this state who, in the ordinary course of the [real estate]
             1427      broker's or sales agent's business, gives an opinion:
             1428          (i) regarding the value of real estate;
             1429          (ii) to a potential seller or third party recommending a listing price of real estate; or
             1430          (iii) to a potential buyer or third party recommending a purchase price of real estate;
             1431          (b) an employee of a company who states an opinion of value or prepares a report
             1432      containing value conclusions relating to real estate or real property solely for the company's
             1433      use;
             1434          (c) [any] an official or employee of a government agency while acting solely within the
             1435      scope of the official's or employee's duties, unless otherwise required by Utah law;
             1436          (d) an auditor or accountant who states an opinion of value or prepares a report
             1437      containing value conclusions relating to real estate or real property while performing an audit;
             1438          (e) an individual, except an individual who is required to be licensed or certified under
             1439      this chapter, who states an opinion about the value of property in which the person has an
             1440      ownership interest;
             1441          (f) an individual who states an opinion of value if no consideration is paid or agreed to
             1442      be paid for the opinion and no other party is reasonably expected to rely on the individual's
             1443      appraisal expertise;
             1444          (g) an individual, such as a researcher or a secretary, who does not render significant
             1445      professional assistance, as defined by the board, in arriving at a real estate appraisal analysis,
             1446      opinion, or conclusion; or
             1447          (h) an attorney authorized to practice law in this state who, in the course of the
             1448      attorney's practice, uses an appraisal report governed by this chapter or who states an opinion
             1449      of the value of real estate.
             1450          (3) An opinion of value or report containing value conclusions exempt under
             1451      Subsection (2) may not be referred to as an appraisal.


             1452          Section 26. Section 61-2b-6 is amended to read:
             1453           61-2b-6. Duties and powers of division.
             1454          (1) The division has the powers and duties listed in this Subsection (1).
             1455          (a) The division shall:
             1456          (i) receive an application for licensing, certification, or registration;
             1457          (ii) establish appropriate administrative procedures for the processing of an application
             1458      for licensure, certification, or registration;
             1459          (iii) issue a license or certification to a qualified applicant pursuant to this chapter; and
             1460          (iv) register an individual who applies and qualifies for registration as a trainee under
             1461      this chapter.
             1462          (b) (i) The division shall require an individual to register with the division as a trainee
             1463      [with the division] before the individual acts in the capacity of a trainee earning experience for
             1464      licensure.
             1465          (ii) Subject to Subsection (4), the board shall adopt rules in accordance with Title 63G,
             1466      Chapter 3, Utah Administrative Rulemaking Act, for:
             1467          (A) the trainee registration required by this Subsection (1)(b); and
             1468          (B) renewal of the trainee registration required by this Subsection (1)(b).
             1469          (c) The division shall hold public hearings under the direction of the board.
             1470          (d) The division may:
             1471          (i) solicit bids and enter into contracts with one or more educational testing services or
             1472      organizations for the preparation of a bank of questions and answers [approved by the board for
             1473      licensing and certification examinations]; and
             1474          (ii) administer or contract for the administration of licensing and certification
             1475      examinations as may be required to carry out the division's responsibilities under this chapter.
             1476          (e) The division shall provide administrative assistance to the board by providing to the
             1477      board the facilities, equipment, supplies, and personnel that are required to enable the board to
             1478      carry out the board's responsibilities under this chapter.
             1479          [(f) The division shall assist the board in upgrading and improving the quality of the
             1480      education and examinations required under this chapter.]
             1481          [(g)] (f) The division shall assist the board in improving the quality of the continuing
             1482      education available to a person licensed [and], certified, or registered under this chapter.


             1483          [(h)] (g) The division shall assist the board with respect to the proper interpretation or
             1484      explanation of the Uniform Standards of Professional Appraisal Practice as required by Section
             1485      61-2b-27 when an interpretation or explanation becomes necessary in the enforcement of this
             1486      chapter.
             1487          [(i)] (h) The division shall establish fees in accordance with Section 63J-1-504 :
             1488          (i) for processing:
             1489          [(A) a trainee registration;]
             1490          [(B)] (A) an application for licensing [and], certification, or registration; and
             1491          [(C)] (B) approval of an expert witness; and
             1492          (ii) for [all other functions] any other function required or permitted by this chapter.
             1493          (i) If a person pays a fee or costs to the division with a negotiable instrument and the
             1494      negotiable instrument is not honored for payment:
             1495          (i) the transaction for which the payment is submitted is voidable by the division;
             1496          (ii) the division may reverse the transaction if payment of the applicable fee or costs is
             1497      not received in full; and
             1498          (iii) the person's license, certification, or registration is automatically suspended:
             1499          (A) beginning the day on which the payment is due; and
             1500          (B) ending the day on which payment is made in full.
             1501          (j) The division may:
             1502          (i) investigate a complaint against:
             1503          [(A) a trainee;]
             1504          [(B)] (A) a person licensed [or], certified, or registered under this chapter; or
             1505          [(C)] (B) a person required to be licensed, certified, or registered under this chapter;
             1506          (ii) subpoena a witness;
             1507          (iii) subpoena the production of a book, paper, document, record, [or other paper]
             1508      contract, or evidence;
             1509          (iv) administer an oath; and
             1510          (v) take testimony and receive evidence concerning a matter within the division's
             1511      jurisdiction.
             1512          (k) The division may:
             1513          (i) promote research and conduct studies relating to the profession of real estate


             1514      appraising; and
             1515          (ii) sponsor real estate appraisal educational activities.
             1516          (l) The division shall adopt, with the concurrence of the board, rules for the
             1517      administration of this chapter pursuant to Title 63G, Chapter 3, Utah Administrative
             1518      Rulemaking Act, that are not inconsistent with this chapter or the constitution and laws of this
             1519      state or of the United States.
             1520          (m) The division shall employ an appropriate staff to investigate allegations that a
             1521      person required to be licensed, certified, or registered under this chapter fails to comply with
             1522      this chapter.
             1523          (n) The division may employ other professional, clerical, and technical staff as may be
             1524      necessary to properly administer the work of the division under this chapter.
             1525          (o) [The division may] (i) Upon request, the division shall make available[, at a
             1526      reasonable cost determined by the division], either directly or through a third party, a list of the
             1527      names and addresses of [all] the persons licensed, registered, or certified by the division under
             1528      this chapter [to the extent the information is a public record under Title 63G, Chapter 2,
             1529      Government Records Access and Management Act].
             1530          (ii) A person who requests a list under this Subsection (1)(o) shall pay the costs
             1531      incurred by the division to make the list available.
             1532          (2) (a) The division shall approve an expert witness who is not otherwise licensed or
             1533      certified under this chapter to appear in an administrative or judicial tax proceeding to provide
             1534      evidence related to the valuation of real property that is assessed by the State Tax Commission,
             1535      [provided that] if the:
             1536          (i) approval is limited to a specific proceeding;
             1537          (ii) approval is valid until the proceeding becomes final;
             1538          (iii) applicant pays to the division an approval fee [to] set by the division in accordance
             1539      with Section 63J-1-504 ;
             1540          (iv) applicant provides the applicant's name, address, occupation, and professional
             1541      credentials; and
             1542          (v) applicant provides a notarized statement that:
             1543          (A) the applicant is competent to render an appraisal and to testify as an expert witness
             1544      in the proceeding; and


             1545          (B) the appraisal and testimony to be offered shall be in accordance with the Uniform
             1546      Standards of Professional Appraisal Practice adopted by the board.
             1547          (b) Subsection (2)(a) [is effective for] applies to an administrative or judicial property
             1548      tax proceeding related to the valuation of real property that is assessed by the State Tax
             1549      Commission.
             1550          (3) (a) If the conditions of Subsection (3)(b) are met, the division is immune from any
             1551      civil action or criminal prosecution for initiating or assisting in a lawful investigation of an act
             1552      of, or participating in a disciplinary proceeding concerning:
             1553          (i) a person required to be licensed, certified, or registered pursuant to this chapter; or
             1554          (ii) a person approved as an expert witness pursuant to this chapter.
             1555          (b) This Subsection (3) applies if the division takes the action:
             1556          (i) without malicious intent; and
             1557          (ii) in the reasonable belief that the action is taken pursuant to the powers and duties
             1558      vested in the division under this chapter.
             1559          (4) (a) An individual applying to register as a trainee under this chapter shall:
             1560          (i) submit a fingerprint card in a form acceptable to the division at the time of applying
             1561      for registration; and
             1562          (ii) consent to a criminal background check by:
             1563          (A) the Utah Bureau of Criminal Identification; and
             1564          (B) the Federal Bureau of Investigation.
             1565          (b) The division shall request the Department of Public Safety to complete a Federal
             1566      Bureau of Investigation criminal background check for an applicant through a national criminal
             1567      history system.
             1568          (c) The applicant shall pay the cost of:
             1569          (i) the fingerprinting required by this section; and
             1570          (ii) the criminal background check required by this section.
             1571          (d) (i) A registration as a trainee under this chapter is conditional pending completion
             1572      of the criminal background check required by this Subsection (4).
             1573          (ii) [If a criminal background check discloses that an applicant fails to accurately
             1574      disclose a criminal history, the] A registration is immediately and automatically revoked[.] if a
             1575      criminal background check discloses that the applicant fails to accurately disclose a criminal


             1576      history involving:
             1577          (A) the appraisal industry;
             1578          (B) fraud;
             1579          (C) misrepresentation; or
             1580          (D) deceit.
             1581          (iii) If a criminal background check discloses that an applicant fails to accurately
             1582      disclose a criminal history other than one described in Subsection (4)(d)(ii), the division:
             1583          (A) shall review the application; and
             1584          (B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
             1585      Utah Administrative Rulemaking Act, may:
             1586          (I) place one or more conditions on a registration;
             1587          (II) place one or more restrictions on a registration;
             1588          (III) revoke a registration; or
             1589          (IV) refer the application to the board for a decision.
             1590          [(iii)] (iv) An individual whose conditional registration is automatically revoked under
             1591      Subsection (4)(d)(ii) or whose registration is conditioned, restricted, or revoked under
             1592      Subsection (4)(d)(iii) may appeal the [revocation] action in a hearing conducted by the board:
             1593          (A) after the [revocation] action is taken; and
             1594          (B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             1595          [(iv)] (v) The board may delegate to the division or an administrative law judge the
             1596      authority to conduct a hearing described in Subsection (4)(d)[(iii)](iv).
             1597          [(v)] (vi) Relief from [a] an automatic revocation under Subsection (4)(d)(ii) may be
             1598      granted only if:
             1599          (A) the criminal history upon which the division [based] bases the revocation:
             1600          (I) did not occur; or
             1601          (II) is the criminal history of another person;
             1602          (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
             1603          (II) the applicant has a reasonable good faith belief at the time of application that there
             1604      was no criminal history to be disclosed; or
             1605          (C) the division fails to follow the prescribed procedure for the revocation.
             1606          (e) If a registration is revoked or a revocation is upheld after a hearing described in


             1607      Subsection (4)(d)[(iii)](iv), the individual may not apply for a new [license] registration for a
             1608      period of 12 months after the day on which the registration is revoked.
             1609          (f) The board may delegate to the division the authority to make a decision on whether
             1610      relief from a revocation should be granted.
             1611          (g) [The funds] Money paid by an applicant for the cost of the criminal background
             1612      check [shall be] is nonlapsing.
             1613          Section 27. Section 61-2b-8 is amended to read:
             1614           61-2b-8. Duties of board.
             1615          (1) (a) The board shall provide technical assistance to the division relating to real estate
             1616      appraisal standards and real estate appraiser qualifications.
             1617          (b) The board has the powers and duties listed in this section.
             1618          (2) The board shall:
             1619          (a) determine the experience[,] and education[, and examination] requirements
             1620      appropriate for a person licensed under this chapter;
             1621          (b) determine the experience[,] and education[, and examination] requirements
             1622      appropriate for a person certified under this chapter:
             1623          (i) in compliance with the minimum requirements of Financial Institutions Reform,
             1624      Recovery, and Enforcement Act of 1989; and
             1625          (ii) consistent with the intent of this chapter;
             1626          (c) determine the appraisal related acts that may be performed by:
             1627          (i) a trainee on the basis of the trainee's education and experience;
             1628          (ii) clerical staff; and
             1629          (iii) a person who:
             1630          (A) does not hold a license or certification; and
             1631          (B) assists an appraiser licensed or certified under this chapter in providing appraisal
             1632      services or consultation services;
             1633          (d) determine the procedures for a trainee to register and to renew a registration with
             1634      the division; and
             1635          (e) develop one or more programs to upgrade and improve the experience, education,
             1636      and examinations as required under this chapter.
             1637          (3) (a) The experience[,] and education[, and examination] requirements established by


             1638      the board for a person licensed or certified under this chapter shall be the minimum criteria
             1639      established by the [Appraiser] Appraisal Qualification Board [of the Appraisal Foundation],
             1640      unless, after notice and a public hearing held in accordance with Title 63G, Chapter 3, Utah
             1641      Administrative Rulemaking Act, the board finds that the minimum criteria are not appropriate
             1642      for a state-licensed appraiser or a state-certified appraiser in this state.
             1643          (b) If under Subsection (3)(a) the board makes a finding that the minimum criteria are
             1644      not appropriate, the board shall recommend appropriate criteria to the Legislature.
             1645          (4) The board shall:
             1646          (a) determine the continuing education requirements appropriate for the renewal of a
             1647      license, certification, or registration issued under this chapter, except that the continuing
             1648      education requirements established by the board shall at least meet the minimum criteria
             1649      established by the Appraisal Qualification Board;
             1650          (b) develop one or more programs to upgrade and improve continuing education; and
             1651          (c) recommend to the division one or more available continuing education courses that
             1652      meet the requirements of this chapter.
             1653          (5) (a) The board shall consider the proper interpretation or explanation of the Uniform
             1654      Standards of Professional Appraisal Practice as required by Section 61-2b-27 when:
             1655          (i) an interpretation or explanation is necessary in the enforcement of this chapter; and
             1656          (ii) the Appraisal Standards Board of the Appraisal Foundation has not issued an
             1657      interpretation or explanation.
             1658          (b) If the conditions of Subsection (5)(a) are met, the board shall recommend to the
             1659      division the appropriate interpretation or explanation that the division should adopt as a rule
             1660      under this chapter.
             1661          (c) The board may by rule made in accordance with Title 63G, Chapter 3, Utah
             1662      Administrative Rulemaking Act, and Section 61-2b-27 provide for an exemption from a
             1663      provision of the Uniform Standards of Professional Appraisal Practice for an activity engaged
             1664      in on behalf of a governmental entity.
             1665          [(6) The board shall develop and establish or approve the examination specifications
             1666      and the minimum score required to pass an examination for licensure or certification.]
             1667          [(7) The board may review the:]
             1668          [(a) bank of questions and answers that comprise the examination for a person licensed


             1669      and certified under this chapter;]
             1670          [(b) procedure that is established for selecting individual questions from the bank of
             1671      questions for use in each scheduled examination; and]
             1672          [(c) questions in the bank of questions and the related answers to determine whether
             1673      they meet the examination specifications established by the board.]
             1674          [(8)] (6) (a) The board shall conduct an administrative hearing, not delegated by the
             1675      board to an administrative law judge, in connection with a disciplinary proceeding under
             1676      Sections 61-2b-30 and 61-2b-31 concerning:
             1677          (i) a person required to be licensed, certified, or registered under this chapter; and
             1678          (ii) the person's failure to comply with this chapter and the Uniform Standards of
             1679      Professional Appraisal Practice as adopted under Section 61-2b-27 .
             1680          (b) The board shall issue in an administrative hearing a decision that contains findings
             1681      of fact and conclusions of law.
             1682          (c) When a determination is made that a person required to be licensed, certified, or
             1683      registered under this chapter has violated this chapter, the division shall implement disciplinary
             1684      action determined by the board.
             1685          [(9)] (7) A member of the board is immune from a civil action or criminal prosecution
             1686      for a disciplinary proceeding concerning a person required to be registered, licensed, certified,
             1687      or approved as an expert under this chapter if the action is taken without malicious intent and
             1688      in the reasonable belief that the action taken was taken pursuant to the powers and duties
             1689      vested in a member of the board under this chapter.
             1690          [(10)] (8) The board shall require and pass upon proof necessary to determine the
             1691      honesty, competency, integrity, and truthfulness of an applicant for:
             1692          (a) original licensure, certification, or registration; and
             1693          (b) renewal licensure [or], certification, or registration.
             1694          Section 28. Section 61-2b-10 is amended to read:
             1695           61-2b-10. State-licensed appraiser -- Authority and qualifications.
             1696          (1) A state-licensed appraiser is authorized to appraise complex and noncomplex 1-4
             1697      family residential units in this state having a transaction value permitted under the Financial
             1698      Institutions Reform, Recovery, and Enforcement Act of 1989, and related federal regulations.
             1699          (2) A state-licensed appraiser is authorized to appraise vacant or unimproved land


             1700      having a transaction value permitted under the Financial Institutions Reform, Recovery, and
             1701      Enforcement Act of 1989, and related federal regulations that is utilized for 1-4 family
             1702      purposes or for which the highest and best use is 1-4 family purposes and subdivisions for
             1703      which a development analysis/appraisal is not necessary.
             1704          (3) A state-licensed appraiser may not issue a certified appraisal report.
             1705          (4) To qualify as a state-licensed appraiser, an applicant must:
             1706          (a) be of good moral character;
             1707          (b) demonstrate honesty, competency, integrity, and truthfulness;
             1708          [(b)] (c) pass the licensing examination with a satisfactory score as determined by the
             1709      [board] Appraisal Qualification Board;
             1710          [(c)] (d) successfully complete not less than 150 classroom hours in courses of study
             1711      [approved by the board] that relate to:
             1712          (i) real estate appraisal;
             1713          (ii) the Uniform Standards of Professional Appraisal Practice; and
             1714          (iii) ethical rules to be observed by a real estate appraiser as required by Section
             1715      61-2b-27 ; and
             1716          [(d)] (e) possess the minimum number of hours of experience in real property appraisal
             1717      as established by rule.
             1718          (5) The courses of study under Subsection (4)[(c)](d) shall be conducted by:
             1719          (a) a college or university;
             1720          (b) a community or junior college;
             1721          (c) a real estate appraisal or real estate related organization;
             1722          (d) a state or federal agency or commission;
             1723          (e) a proprietary school;
             1724          (f) a provider approved by a state certification and licensing agency; or
             1725          (g) the Appraisal Foundation or its boards.
             1726          [(6) The board shall require and pass upon proof necessary to determine the honesty,
             1727      competency, integrity, and truthfulness of each applicant.]
             1728          Section 29. Section 61-2b-14 is amended to read:
             1729           61-2b-14. State-certified residential appraiser -- Application.
             1730          (1) [Each] An applicant for certification as a residential appraiser shall provide to the


             1731      division evidence of:
             1732          (a) the applicant's good moral character, honesty, competency, integrity, and
             1733      truthfulness;
             1734          [(a) of] (b) completion of the certification examination with a satisfactory score as
             1735      determined by the [board] Appraisal Qualification Board;
             1736          [(b) (i) of] (c) (i) an associate degree or higher degree from an accredited:
             1737          (A) college;
             1738          (B) junior college;
             1739          (C) community college; or
             1740          (D) university; or
             1741          (ii) [of] successfully passing a curriculum determined by rule of collegiate level subject
             1742      matter courses from an accredited:
             1743          (A) college;
             1744          (B) junior college;
             1745          (C) community college; or
             1746          (D) university;
             1747          [(c) of] (d) satisfactory completion of not less than 200 classroom hours in a
             1748      curriculum:
             1749          (i) of specific appraisal education determined by rule made by the board; and
             1750          (ii) that includes a course in the Uniform Standards of Professional Practice or its
             1751      equivalent that [has been] is approved by the Appraisal [Qualifications] Qualification Board [of
             1752      the federal Appraisal Foundation authorized by Title XI of the Financial Institutions Reform,
             1753      Recovery, and Enforcement Act of 1989];
             1754          [(d) of] (e) the minimum number of hours of experience in real property appraisal as
             1755      established by rule; and
             1756          [(e) that] (f) acquiring the experience required under Subsection [(1)(d) was acquired]
             1757      (1)(e) within a reasonable period, as determined by rule, immediately preceding the filing of
             1758      the application for certification.
             1759          (2) Upon request by the division, [the] an applicant shall make available to the division
             1760      for examination:
             1761          (a) a detailed listing of the real estate appraisal reports or file memoranda for each year


             1762      for which experience is claimed; and
             1763          (b) a sample selected by the division of appraisal reports that the applicant has prepared
             1764      in the course of the applicant's appraisal practice.
             1765          (3) The classroom hours required by Subsection (1)[(c)](d) shall be provided by:
             1766          (a) a college or university;
             1767          (b) a community or junior college;
             1768          (c) a real estate appraisal or real estate related organization;
             1769          (d) a state or federal agency or commission;
             1770          (e) a proprietary school;
             1771          (f) a provider approved by a state certification and licensing agency; or
             1772          (g) the Appraisal Foundation or its boards.
             1773          Section 30. Section 61-2b-15 is amended to read:
             1774           61-2b-15. State-certified general appraiser -- Application -- Qualifications.
             1775          (1) [Each] An applicant for certification as a general appraiser shall provide to the
             1776      division evidence of:
             1777          (a) the applicant's good moral character, honesty, competency, integrity, and
             1778      truthfulness;
             1779          [(a) of] (b) completion of the certification examination with a satisfactory score as
             1780      determined by the [board] Appraisal Qualification Board;
             1781          [(b)] (c) (i) [of] a bachelors degree or higher degree from an accredited college or
             1782      university; or
             1783          (ii) [of] successfully passing a curriculum determined by rule of collegiate level subject
             1784      matter courses from an accredited:
             1785          (A) college;
             1786          (B) junior college;
             1787          (C) community college; or
             1788          (D) university;
             1789          [(c) of] (d) satisfactory completion of not less than 300 classroom hours in a
             1790      curriculum:
             1791          (i) of specific appraisal education determined by rule; and
             1792          (ii) that includes a course in the Uniform Standards of Professional Practice or its


             1793      equivalent that has been approved by the Appraisal [Qualifications] Qualification Board [of the
             1794      Appraisal Foundation authorized by Title XI of the Financial Institutions Reform, Recovery,
             1795      and Enforcement Act of 1989];
             1796          [(d) of] (e) the minimum number of hours of experience in real property appraisal as
             1797      established by rule; and
             1798          [(e) that] (f) acquiring the experience required under Subsection [(1)(d) is acquired]
             1799      (1)(e) within a reasonable period, as determined by rule, immediately preceding the filing of
             1800      the application for certification.
             1801          (2) Upon request by the division, [the] an applicant shall make available to the division
             1802      for examination:
             1803          (a) a detailed listing of the real estate appraisal reports or file memoranda for each year
             1804      for which experience is claimed; and
             1805          (b) a sample selected by the division of appraisal reports that the applicant has prepared
             1806      in the course of the applicant's appraisal practice.
             1807          (3) The classroom hours required by Subsection (1)[(c)](d) shall be provided by:
             1808          (a) a college or university;
             1809          (b) a community or junior college;
             1810          (c) a real estate appraisal or real estate related organization;
             1811          (d) a state or federal agency or commission;
             1812          (e) a proprietary school;
             1813          (f) a provider approved by a state certification and licensing agency; or
             1814          (g) the Appraisal Foundation or its boards.
             1815          Section 31. Section 61-2b-17 is amended to read:
             1816           61-2b-17. State-certified and state-licensed appraisers -- Restrictions on use of
             1817      terms -- Conduct prohibited or required -- Trainee.
             1818          (1) (a) The terms "state-certified general appraiser," "state-certified residential
             1819      appraiser," and "state-licensed appraiser":
             1820          (i) may only be used to refer to an individual who is certified or licensed under this
             1821      chapter; and
             1822          (ii) may not be used following, or immediately in connection with, the name or
             1823      signature of a firm, partnership, corporation, or group, or in any manner that it might be


             1824      interpreted as referring to a firm, partnership, corporation, group, or to anyone other than the
             1825      individual who is certified or licensed under this chapter.
             1826          (b) The requirement of this Subsection (1) may not be construed to prevent a
             1827      state-certified general appraiser from signing an appraisal report on behalf of a corporation,
             1828      partnership, firm, or group practice if it is clear that:
             1829          (i) only the individual is certified; and
             1830          (ii) the corporation, partnership, firm, or group practice is not certified.
             1831          (c) Except as provided in Section 61-2b-25 , a certificate or license may not be issued
             1832      under this chapter to a corporation, partnership, firm, or group.
             1833          (2) (a) A person other than a state-certified general appraiser or state-certified
             1834      residential appraiser, may not assume or use any title, designation, or abbreviation likely to
             1835      create the impression of certification in this state as a real estate appraiser.
             1836          (b) A person other than a state-licensed appraiser may not assume or use any title,
             1837      designation, or abbreviation likely to create the impression of licensure in this state as a real
             1838      estate appraiser.
             1839          (3) (a) Only an individual who has qualified under the certification requirements of this
             1840      chapter is authorized to prepare and sign a certified appraisal report relating to real estate or
             1841      real property in this state.
             1842          (b) If a certified appraisal report is prepared and signed by a state-certified residential
             1843      appraiser, the certified appraisal report shall state, immediately following the signature on the
             1844      report, "State-Certified Residential Appraiser."
             1845          (c) If a certified appraisal report is prepared and signed by a state-certified general
             1846      appraiser, the certified appraisal report shall state, immediately following the signature on the
             1847      report, "State-Certified General Appraiser."
             1848          (d) An appraisal report prepared by a state-licensed appraiser shall state, immediately
             1849      following the signature on the report, "State-Licensed Appraiser."
             1850          (e) When signing a certified appraisal report, a state-certified appraiser shall also place
             1851      on the report, immediately below the state-certified appraiser's signature the state-certified
             1852      appraiser's certificate number and its expiration date.
             1853          (f) A state-certified residential appraiser may not prepare a certified appraisal report
             1854      outside the state-certified residential appraiser's authority as defined in Section 61-2b-13 .


             1855          (g) A state-licensed appraiser who assisted in the preparation of a certified appraisal
             1856      report is authorized to cosign the certified appraisal report.
             1857          (4) A person who has not qualified under this chapter may not describe or refer to any
             1858      appraisal or appraisal report relating to real estate or real property in this state by the terms
             1859      "certified appraisal" or "certified appraisal report."
             1860          (5) If a trainee assists [a state-licensed appraiser or] a state-certified appraiser in the
             1861      preparation of an appraisal report, the appraisal report shall disclose:
             1862          (a) the trainee's name; and
             1863          (b) the extent to which the trainee assists in the preparation of the appraisal report.
             1864          Section 32. Section 61-2b-18 is amended to read:
             1865           61-2b-18. Application for licensure, certification, or registration -- Approval as
             1866      an expert witness.
             1867          (1) An application for the following shall be sent to the division on a form approved by
             1868      the division:
             1869          (a) original certification, licensure, or registration;
             1870          (b) approval as an expert witness; and
             1871          (c) renewal of certification [or], licensure, or registration.
             1872          (2) The payment of the appropriate fee, as [fixed] established by the division, with the
             1873      concurrence of the board, in accordance with Section 63J-1-504 , must accompany an
             1874      application for:
             1875          (a) approval as an expert witness;
             1876          (b) original certification, licensure, or registration; and
             1877          (c) renewal of certification [or], licensure, or registration.
             1878          (3) At the time of filing an application described in Subsection (1), an applicant shall:
             1879          (a) sign a pledge to comply with the Uniform Standards of Professional Appraisal
             1880      Practice and the ethical rules to be observed by an appraiser that are established under Section
             1881      61-2b-27 for:
             1882          (i) a certified or licensed appraiser;
             1883          (ii) a trainee; or
             1884          (iii) an expert witness approved under this chapter; and
             1885          (b) certify that the applicant understands the types of misconduct, as set forth in this


             1886      chapter, for which a disciplinary proceeding may be initiated against a person certified,
             1887      licensed, or registered under this chapter.
             1888          Section 33. Section 61-2b-19 is amended to read:
             1889           61-2b-19. Expiration of license, certification, or registration.
             1890          (1) [The] An initial license [or], certification, or registration issued under this chapter
             1891      expires on the expiration date indicated on the license [or], certificate, or registration.
             1892          (2) A renewal license [or], certification, or registration issued under this chapter
             1893      expires two years from the date of issuance.
             1894          (3) (a) The scheduled expiration date of [the] a license [or], certification, or registration
             1895      shall appear on the license [or], certification, or registration document [and no other notice of
             1896      its expiration need be given to its holder].
             1897          (b) H. (i) .H The division H. [ is not required to provide ] shall mail .H a holder of a
             1897a      license, certification, or
             1898      registration notice of its expiration H. to the last address stated on the division's records as the
             1898a      holder's current address .H .
             1898b      H. (ii) To be mailed a notice under this Subsection (3)(b), a holder of a license, certification,
             1898c      or registration shall provide to the division in writing the holder's current address.
             1898d      (iii) A holder's license, certification, or registration expires if not renewed by the holder
             1898e      notwithstanding whether the holder receives a notice of its expiration by the division under
             1898f      this Subsection (3)(b). .H
             1899          Section 34. Section 61-2b-20 is amended to read:
             1900           61-2b-20. Renewal of license, certification, or registration.
             1901          [(1) To obtain a renewal of a license or certification under this chapter, the holder of a
             1902      current, valid license or certification shall, in compliance with procedures established by the
             1903      division and the board, make application and pay the prescribed fee to the division before the
             1904      expiration date of the license or certification.]
             1905          [(2) An application for renewal of a license or certification shall be accompanied by]
             1906          (1) To renew a license, certification, or registration, before the license, certification, or
             1907      registration expires, the holder of the license, certification, or registration shall submit to the
             1908      division in compliance with procedures set by the division and the board:
             1909          (a) an application for renewal;
             1910          (b) a fee established by the division and the board, in accordance with Section
             1911      63J-1-504 ; and
             1912          (c) evidence in the form prescribed by the division of having completed the continuing
             1913      education requirements for renewal specified in this chapter.
             1914          [(3)] (2) (a) A license [or], certification,or registration expires if it is not renewed on or
             1915      before its expiration date.
             1916          (b) For a period of 30 days after the expiration date, a license [or], certification, or


             1917      registration may be reinstated upon:
             1918          (i) payment of a renewal fee and a late fee determined by the division and the board;
             1919      and
             1920          (ii) satisfying the continuing education requirements specified in Section 61-2b-40 .
             1921          (c) After the 30-day period described in Subsection [(3)] (2)(b), and until six months
             1922      after the expiration date, [the] a license [or], certification, or registration may be reinstated by:
             1923          (i) paying a renewal fee and a reinstatement fee determined by the division and the
             1924      board; and
             1925          (ii) satisfying the continuing education requirements specified in Section 61-2b-40 .
             1926          (d) After the six-month period described in Subsection [(3)] (2)(c), and until one year
             1927      after the expiration date, [the] a license [or], certification, or registration may be reinstated by:
             1928          (i) paying a renewal fee and a reinstatement fee determined by the division and the
             1929      board in accordance with Section 63J-1-504 ;
             1930          (ii) providing proof acceptable to the division and the board of the person having
             1931      satisfied the continuing education requirements of Section 61-2b-40 ; and
             1932          (iii) providing proof acceptable to the division and the board of the person completing
             1933      24 hours of continuing education:
             1934          (A) in addition to the requirements in Section 61-2b-40 ; and
             1935          (B) on a subject determined by the division by rule made in accordance with Title 63G,
             1936      Chapter 3, Utah Administrative Rulemaking Act.
             1937          (e) The division shall relicense [or], recertify, or reregister a person who does not
             1938      renew that person's license [or], certification, or registration within one year after the expiration
             1939      date as prescribed for an original application.
             1940          (f) Notwithstanding Subsection [(3)] (2)(a), the division may extend the term of a
             1941      license, certification, or registration that would expire under Subsection [(3)] (2)(a) except for
             1942      the extension if:
             1943          (i) the person complies with the requirements of this section to renew the license,
             1944      certification, or registration; and
             1945          (ii) at the time of the extension, there is pending under this chapter:
             1946          (A) the application for renewal of the license, certification, registration; or
             1947          (B) a disciplinary action.


             1948          [(4)] (3) A person who is licensed, certified, or registered under this chapter shall
             1949      notify the division of the following by sending the division a signed statement within 10
             1950      business days of:
             1951          (a) (i) a conviction of a criminal offense;
             1952          (ii) the entry of a plea in abeyance to a criminal offense; or
             1953          (iii) the potential resolution of a criminal case by:
             1954          (A) a diversion agreement; or
             1955          (B) any other agreement under which a criminal charge is suspended for a period of
             1956      time;
             1957          (b) filing a personal bankruptcy or business bankruptcy;
             1958          (c) the suspension, revocation, surrender, cancellation, or denial of a professional
             1959      license, certification, or registration of the person, whether the license, certification, or
             1960      registration is issued by this state or another jurisdiction; or
             1961          (d) the entry of a cease and desist order or a temporary or permanent injunction:
             1962          (i) against the person by a court or [licensing] administrative agency; and
             1963          (ii) on the basis of:
             1964          (A) conduct or a practice involving an act regulated by this chapter; or
             1965          (B) conduct involving fraud, misrepresentation, or deceit.
             1966          Section 35. Section 61-2b-25 is amended to read:
             1967           61-2b-25. Other law unaffected.
             1968          [Nothing contained in this] This chapter [shall] may not be considered to prohibit a
             1969      person approved, licensed, [or] certified, or registered under this chapter from engaging in the
             1970      practice of real estate appraising as a professional corporation or a limited liability company in
             1971      accordance with:
             1972          (1) Title 16, Chapter 11, Professional Corporation Act; or
             1973          (2) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act.
             1974          Section 36. Section 61-2b-28 is amended to read:
             1975           61-2b-28. Enforcement -- Investigation -- Orders -- Hearings.
             1976          (1) (a) The division may investigate the actions of:
             1977          (i) a person registered, licensed, or certified under this chapter;
             1978          (ii) an applicant for registration, licensure, or certification;


             1979          (iii) an applicant for renewal of registration, licensure, or certification; or
             1980          (iv) a person required to be registered, licensed, or certified under this chapter.
             1981          (b) The division may initiate an agency action against a person described in Subsection
             1982      (1)(a) in accordance with Title 63G, Chapter 4, Administrative Procedures Act, to:
             1983          (i) impose disciplinary action;
             1984          (ii) deny issuance to an applicant of:
             1985          (A) an original registration, license, or certification; or
             1986          (B) a renewal of a registration, license, or certification; or
             1987          (iii) issue a cease and desist order as provided in Subsection (3).
             1988          (2) (a) The division may:
             1989          (i) administer an oath or affirmation;
             1990          (ii) subpoena a witness or evidence;
             1991          (iii) take evidence; and
             1992          (iv) require the production of a book, paper, contract, record, [other] document, [or]
             1993      information, or evidence relevant to the investigation described in Subsection (1).
             1994          (b) The division may serve a subpoena by certified mail.
             1995          (c) A failure to respond to a request by the division in an investigation authorized under
             1996      this chapter is considered to be a separate violation of this chapter, including:
             1997          (i) failing to respond to a subpoena as a witness;
             1998          (ii) withholding evidence; or
             1999          (iii) failing to produce a book, paper, contract, document, information, or record.
             2000          (d) (i) H. [ A ] If a person is found to have violated this chapter or a rule made under
             2000a      this chapter, the .H person shall pay the costs incurred by the division to copy a book, paper,
             2001      contract, document, information, or record required under this chapter, including the costs
             2002      incurred to copy an electronic book, paper, contract, document, information, or record in a
             2003      universally readable format.
             2004          (ii) If a person fails to pay the costs described in Subsection (2)(d)(i) when due, the
             2005      person's license, certification, or registration is automatically suspended:
             2006          (A) beginning the day on which the payment of costs is due; and
             2007          (B) ending the day on which the costs are paid.
             2008          (3) (a) The director shall issue and serve upon a person an order directing that person to
             2009      cease and desist from an act if:


             2010          (i) the director has reason to believe that the person has been engaging, is about to
             2011      engage, or is engaging in the act constituting a violation of this chapter; and
             2012          (ii) it appears to the director that it would be in the public interest to stop the act.
             2013          (b) Within 10 days after receiving the order, the person upon whom the order is served
             2014      may request a hearing.
             2015          (c) Pending a hearing requested under Subsection (3)(b), a cease and desist order shall
             2016      remain in effect.
             2017          (d) If a request for hearing is made, the division shall follow the procedures and
             2018      requirements of Title 63G, Chapter 4, Administrative Procedures Act.
             2019          (4) (a) After a hearing requested under Subsection (3), if the board agrees that an act of
             2020      the person violates this chapter, the board:
             2021          (i) shall issue an order making the cease and desist order permanent; and
             2022          (ii) may impose another disciplinary action under Section 61-2b-29 .
             2023          (b) The director shall commence an action in the name of the Department of
             2024      Commerce and Division of Real Estate, in the district court in the county in which an act
             2025      described in Subsection (3) occurs or where the person resides or carries on business, to enjoin
             2026      and restrain the person from violating this chapter if:
             2027          (i) (A) a hearing is not requested under Subsection (3); and
             2028          (B) the person fails to cease the act described in Subsection (3); or
             2029          (ii) after discontinuing the act described in Subsection (3), the person again
             2030      commences the act.
             2031          (5) A remedy or action provided in this section does not limit, interfere with, or prevent
             2032      the prosecution of another remedy or action, including a criminal proceeding.
             2033          Section 37. Section 61-2b-29 is amended to read:
             2034           61-2b-29. Disciplinary action -- Grounds.
             2035          (1) (a) The board may order disciplinary action against a person:
             2036          (i) registered, licensed, or certified under this chapter; or
             2037          (ii) required to be registered, licensed, or certified under this chapter.
             2038          (b) On the basis of a ground listed in Subsection (2) for disciplinary action, board
             2039      action may include:
             2040          (i) revoking, suspending, or placing a person's registration, license, or certification on


             2041      probation;
             2042          (ii) denying a person's original registration, license, or certification;
             2043          (iii) denying a person's renewal license [or], certification, or registration;
             2044          (iv) in the case of denial or revocation of a registration, license, or certification, setting
             2045      a waiting period for an applicant to apply for a registration, license, or certification under this
             2046      chapter;
             2047          (v) ordering remedial education;
             2048          (vi) imposing a civil penalty upon a person not to exceed the greater of:
             2049          (A) [$2,500] $5,000 for each violation; or
             2050          (B) the amount of any gain or economic benefit from a violation;
             2051          (vii) issuing a cease and desist order;
             2052          (viii) modifying an action described in Subsections (1)(b)(i) through (vii) if the board
             2053      finds that the person complies with court ordered restitution; or
             2054          (ix) doing any combination of Subsections (1)(b)(i) through (viii).
             2055          (c) (i) If the board or division issues an order that orders a fine or educational
             2056      requirements as part of the disciplinary action against a person, including a stipulation and
             2057      order, the board or division shall state in the order the deadline by which the person shall
             2058      comply with the fine or educational requirements.
             2059          (ii) If a person fails to comply with a stated deadline:
             2060          (A) the person's license, certificate, or registration is automatically suspended:
             2061          (I) beginning on the day specified in the order as the deadline for compliance; and
             2062          (II) ending the day on which the person complies in full with the order; and
             2063          (B) if the person fails to pay a fine required by an order, the division may begin a
             2064      collection process:
             2065          (I) established by the division by rule made in accordance with Title 63G, Chapter 3,
             2066      Utah Administrative Rulemaking Act; and
             2067          (II) subject to Title 63A, Chapter 8, Office of State Debt Collection.
             2068          (2) The following are grounds for disciplinary action under this section:
             2069          (a) procuring or attempting to procure a registration, license, or certification under this
             2070      chapter:
             2071          (i) by fraud; or


             2072          (ii) by making a false statement, submitting false information, or making a material
             2073      misrepresentation in an application filed with the division;
             2074          (b) paying money or attempting to pay money other than a fee provided for by this
             2075      chapter to a member or employee of the division to procure a registration, license, or
             2076      certification under this chapter;
             2077          (c) an act or omission in the practice of real estate appraising that constitutes
             2078      dishonesty, fraud, or misrepresentation;
             2079          (d) entry of a judgment against a registrant, licensee, or certificate holder on grounds of
             2080      fraud, misrepresentation, or deceit in the making of an appraisal of real estate;
             2081          (e) a guilty plea to a criminal offense involving moral turpitude that is held in
             2082      abeyance, or a conviction, including a conviction based upon a plea of guilty or nolo
             2083      contendere, of a criminal offense involving moral turpitude;
             2084          (f) engaging in the business of real estate appraising under an assumed or fictitious
             2085      name not properly registered in this state;
             2086          (g) paying a finder's fee or a referral fee to a person not licensed or certified under this
             2087      chapter in connection with an appraisal of real estate or real property in this state;
             2088          (h) making a false or misleading statement in:
             2089          (i) that portion of a written appraisal report that deals with professional qualifications;
             2090      or
             2091          (ii) testimony concerning professional qualifications;
             2092          (i) violating or disregarding:
             2093          (i) [a provision of] this chapter;
             2094          (ii) an order of the board; or
             2095          (iii) a rule issued under this chapter;
             2096          (j) violating the confidential nature of governmental records to which a person
             2097      registered, licensed, certified, or approved as an expert under this chapter gained access
             2098      through employment or engagement as an appraiser by a governmental agency;
             2099          (k) accepting a contingent fee for performing an appraisal [as defined in Subsection
             2100      61-2b-2 (1)(a)] if in fact the fee is or was contingent upon:
             2101          (i) the appraiser reporting a predetermined analysis, opinion, or conclusion;
             2102          (ii) the analysis, opinion, conclusion, or valuation reached; or


             2103          (iii) the consequences resulting from the appraisal assignment;
             2104          (l) unprofessional conduct as defined by statute or rule;
             2105          (m) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             2106          (i) providing a title insurance product or service without the approval required by
             2107      Section 31A-2-405 ; or
             2108          (ii) knowingly providing false or misleading information in the statement required by
             2109      Subsection 31A-2-405 (2); or
             2110          (n) other conduct that constitutes dishonest dealing.
             2111          Section 38. Section 61-2b-30.5 is amended to read:
             2112           61-2b-30.5. Reinstatement of license, certification, registration, approval --
             2113      Expert witness -- Trainee.
             2114          (1) An individual [who has had a] whose license, certification, registration, or approval
             2115      is revoked under this chapter:
             2116          (a) may not apply for renewal of that license, certification, registration, or approval;
             2117      and
             2118          (b) may apply for licensure, certification, registration, or approval as prescribed for an
             2119      original license [or], certification, registration, or approval subject to the limitations in
             2120      Subsection (2).
             2121          (2) An applicant for licensure, certification, registration, or approval as an expert
             2122      witness under Subsection (1):
             2123          (a) may not apply for licensure, certification, registration, or approval until at least five
             2124      years after the date of revocation of the applicant's original license, certification, registration, or
             2125      approval; and
             2126          (b) is not entitled to credit for experience gained prior to the date of revocation in
             2127      determining whether the applicant meets the experience requirement for licensure, certification,
             2128      registration, or approval.
             2129          (3) A person whose license or certification is revoked may not act as a trainee until at
             2130      least four years after the day on which the person's license or certification is revoked.
             2131          Section 39. Section 61-2b-32 is amended to read:
             2132           61-2b-32. Registration, licensure, or certification prerequisite to suit for
             2133      compensation.


             2134          [No] A person engaged in the business of real estate appraising in this state or acting in
             2135      the capacity of a real estate appraiser in this state may not bring or maintain [any] an action [in
             2136      any] as a plaintiff in a court of this state to collect compensation for the performance of real
             2137      estate appraisal services for which registration, licensure, or certification is required by this
             2138      chapter without alleging and proving that [he] the person was the holder of a valid registration,
             2139      license, or certification in this state at all times during the performance of [such] the real estate
             2140      appraisal services.
             2141          Section 40. Section 61-2b-33 is amended to read:
             2142           61-2b-33. Penalty for violating this chapter -- Automatic revocation.
             2143          (1) In addition to being subject to a disciplinary action by the board, a person required
             2144      to be licensed, certified, or registered under this chapter who violates this chapter:
             2145          (a) is guilty of a class A misdemeanor, upon a conviction of a first violation of this
             2146      chapter; and
             2147          (b) is guilty of a third degree felony, upon conviction of a second or subsequent
             2148      violation of this chapter.
             2149          (2) A license [or], certification, or registration issued by the division to a person
             2150      convicted of a violation of Section 76-6-1203 is automatically revoked.
             2151          Section 41. Section 61-2b-36 is amended to read:
             2152           61-2b-36. Contingent fees.
             2153          (1) A person licensed or certified under this chapter who enters into an agreement to
             2154      perform an appraisal [as defined in Subsection 61-2b-2 (1)(a)] may not accept a contingent fee.
             2155          (2) A person licensed or certified under this chapter who enters into an agreement to
             2156      provide consultation services [as defined in Subsection 61-2b-2 (1)(f)(i)(A)] may be paid a
             2157      fixed fee or a contingent fee.
             2158          (3) (a) If a person licensed or certified under this chapter enters into an agreement to
             2159      perform consultation services for a contingent fee, this fact shall be clearly stated in each oral
             2160      statement.
             2161          (b) In addition to the requirements of Subsection (3)(a), if a person licensed or certified
             2162      under this chapter prepares a written consultation report or summary, letter of transmittal, or
             2163      certification statement for a contingent fee, the person shall clearly state in the report,
             2164      summary, letter of transmittal, or certification statement that the report is prepared under a


             2165      contingent fee arrangement.
             2166          Section 42. Section 61-2b-39 is amended to read:
             2167           61-2b-39. Registration, licensure, or certification history.
             2168          The division may, upon payment of a fee [in an amount specified in rule] established by
             2169      the division in accordance with Section 63J-1-504 , issue to [any] a person a verified [license]
             2170      history of:
             2171          (1) [any] a person licensed [or], certified, or registered under this chapter; or
             2172          (2) [any] a person previously registered, licensed, or certified under this chapter.
             2173          Section 43. Section 61-2b-40 is amended to read:
             2174           61-2b-40. Continuing education requirements.
             2175          (1) As a prerequisite to renewal of a license [or], certification, or registration, the
             2176      applicant for renewal shall present evidence satisfactory to the division of having met the
             2177      continuing education requirements of this section.
             2178          (2) [For any] A person licensed [or], certified, or registered under this chapter[, the
             2179      continuing education requirement for renewal of licensure or certification shall be the
             2180      completion by the applicant,] shall complete during the two-year period immediately preceding
             2181      the filing of an application for renewal[, of] not less than 28 classroom hours of instruction in
             2182      courses or seminars that have received the approval of the [board] division.
             2183          (3) The division may adopt rules for the implementation of this section to assure that
             2184      each person renewing that person's license [or], certification, or registration under this chapter
             2185      has a working knowledge of current real estate appraisal theories, practices, and techniques that
             2186      will enable the person to provide competent real estate appraisal services to the members of the
             2187      public with whom that person deals in a professional relationship under the authority of that
             2188      person's license [or], certificate, or registration.
             2189          (4) An amendment or repeal of a rule adopted by the division under this section [shall]
             2190      does not operate to deprive a person of credit toward renewal of that person's license [or],
             2191      certification, or registration for [any] a course of instruction that is successfully completed by
             2192      the applicant [prior to] before the date of the amendment or repeal of the rule.
             2193          (5) In lieu of meeting the requirements set forth in Subsection (2) and applicable rules,
             2194      an applicant for renewal may satisfy all or part of the continuing education requirements that
             2195      are imposed by the board in excess of the minimum requirements of the Appraisal


             2196      Qualification Board by presenting evidence of the following:
             2197          (a) completion of an educational program of study determined by the board to be
             2198      equivalent, for continuing education purposes, to courses or seminars approved by the board; or
             2199          (b) participation other than as a student in educational processes and programs
             2200      approved by the board that relate to real property appraisal theory, practices, or techniques
             2201      including teaching, program development, and preparation of textbooks, monographs, articles,
             2202      and other instructional materials.
             2203          (6) The board shall develop and propose to the division rules [for the implementation
             2204      of this section to assure that a person who renews that person's license or certification has a
             2205      working knowledge of current real estate appraisal theories, practices, and techniques that will
             2206      enable the person to provide competent real estate appraisal services to the members of the
             2207      public with whom that person deals in a professional relationship under the authority of that
             2208      person's license or certification. These rules] described in Subsection (3). The rules developed
             2209      and proposed by the board under this Subsection (6) shall prescribe:
             2210          (a) policies and procedures to be followed in obtaining [board] division approval of
             2211      courses of instruction and seminars;
             2212          (b) standards, policies, and procedures to be used by the division in evaluating an
             2213      applicant's claims of equivalency; and
             2214          (c) standards, monitoring methods, and systems for recording attendance to be
             2215      employed by course and seminar sponsors as a prerequisite to division approval of courses and
             2216      seminars for credit.
             2217          (7) (a) A person whose license [or], certification [has been], or registration is revoked
             2218      or suspended as the result of a disciplinary action taken by the board may not apply for
             2219      reinstatement unless the person presents evidence of completion of the continuing education
             2220      requirement that is [provided in] required by this chapter for renewal.
             2221          (b) The continuing education required under Subsection (7)(a) [shall] may not be
             2222      imposed upon an applicant for reinstatement who has been required by the division to
             2223      successfully complete the examination for licensure or certification required by Section
             2224      61-2b-20 as a condition to reinstatement.
             2225          Section 44. Section 61-2c-102 is amended to read:
             2226           61-2c-102. Definitions.


             2227          (1) As used in this chapter:
             2228          [(a) "Affiliate" means a person who directly, or indirectly through one or more
             2229      intermediaries, controls or is controlled by, or is under common control with, a specified
             2230      individual or entity.]
             2231          (a) "Affiliation" means that a mortgage loan originator is associated with a principal
             2232      lending manager in accordance with Section 61-2c-209 .
             2233          (b) "Applicant" means a person applying for a license under this chapter.
             2234          (c) "Approved examination provider" means a person approved by the nationwide
             2235      database as an approved test provider.
             2236          (d) "Associate lending manager" means an individual who:
             2237          (i) qualifies under this chapter as a principal lending manager; and
             2238          (ii) works by or on behalf of another principal lending manager in transacting the
             2239      business of residential mortgage loans.
             2240          (e) "Branch office" means a licensed entity's office:
             2241          (i) for the transaction of the business of residential mortgage loans regulated under this
             2242      chapter;
             2243          (ii) other than the main office of the licensed entity; and
             2244          (iii) that operates under the same business name as the licensed entity.
             2245          (f) (i) "Business of residential mortgage loans" means for compensation or in the
             2246      expectation of compensation to:
             2247          (A) engage in an act that makes an individual a mortgage loan originator;
             2248          (B) make or originate a residential mortgage loan;
             2249          (C) directly or indirectly solicit a residential mortgage loan for another; or
             2250          (D) unless excluded under Subsection (1)(f)(ii), render services related to the
             2251      origination of a residential mortgage loan including:
             2252          (I) preparing a loan package;
             2253          (II) communicating with the borrower and lender; or
             2254          (III) advising on a loan term.
             2255          (ii) "Business of residential mortgage loans" does not include:
             2256          (A) if working as an employee under the direction of and subject to the supervision and
             2257      instruction of a person licensed under this chapter, the performance of a clerical or support duty


             2258      such as:
             2259          (I) the receipt, collection, or distribution of information common for the processing or
             2260      underwriting of a loan in the mortgage industry other than taking an application;
             2261          (II) communicating with a consumer to obtain information necessary for the processing
             2262      or underwriting of a residential mortgage loan;
             2263          (III) word processing;
             2264          (IV) sending correspondence; or
             2265          (V) assembling files;
             2266          (B) ownership of an entity that engages in the business of residential mortgage loans if
             2267      the owner does not personally perform the acts listed in Subsection (1)(f)(i); or
             2268          (C) except if an individual will engage in an activity as a mortgage loan originator,
             2269      acting in one or more of the following capacities:
             2270          (I) a loan wholesaler;
             2271          (II) an account executive for a loan wholesaler;
             2272          (III) a loan underwriter;
             2273          (IV) a loan closer; or
             2274          (V) funding a loan.
             2275          (g) "Certified education provider" means a person who is certified under Section
             2276      61-2c-204.1 to provide one or more of the following:
             2277          (i) Utah-specific prelicensing education; or
             2278          (ii) Utah-specific continuing education.
             2279          (h) "Closed-end" means a loan:
             2280          (i) with a fixed amount borrowed; and
             2281          (ii) that does not permit additional borrowing secured by the same collateral.
             2282          (i) "Commission" means the Residential Mortgage Regulatory Commission created in
             2283      Section 61-2c-104 .
             2284          (j) "Compensation" means anything of economic value that is paid, loaned, granted,
             2285      given, donated, or transferred to an individual or entity for or in consideration of:
             2286          (i) services;
             2287          (ii) personal or real property; or
             2288          (iii) another thing of value.


             2289          (k) "Concurrence" means that entities given a concurring rule must jointly agree for the
             2290      action to be taken.
             2291          [(k)] (l) "Continuing education" means education taken by an individual licensed under
             2292      this chapter in order to meet the education requirements imposed by Sections 61-2c-204.1 and
             2293      61-2c-205 to renew a license under this chapter.
             2294          [(l)] (m) "Control," as used in Subsection [(1)(a)] 61-2c-105 (2)(f), means the power to
             2295      directly or indirectly:
             2296          (i) direct or exercise a controlling interest over:
             2297          (A) the management or policies of an entity; or
             2298          (B) the election of a majority of the directors, officers, managers, or managing partners
             2299      of an entity;
             2300          (ii) vote 20% or more of a class of voting securities of an entity by an individual; or
             2301          (iii) vote more than 5% of a class of voting securities of an entity by another entity.
             2302          (n) (i) "Control person" means an individual identified by an entity registered with the
             2303      nationwide database as being the individual primarily responsible for directing the management
             2304      or policies of the entity.
             2305          (ii) "Control person" may include one of the following who is identified as provided in
             2306      Subsection (1)(n)(i):
             2307          (A) a manager;
             2308          (B) a managing partner;
             2309          (C) a director;
             2310          (D) an executive officer; or
             2311          (E) an individual who performs a function similar to an individual listed in this
             2312      Subsection (1)(n)(ii).
             2313          [(m)] (o) "Depository institution" is as defined in Section 7-1-103 .
             2314          [(n)] (p) "Director" means the director of the division.
             2315          [(o)] (q) "Division" means the Division of Real Estate.
             2316          [(p)] (r) "Dwelling" means a residential structure attached to real property that contains
             2317      one to four units including any of the following if used as a residence:
             2318          (i) a condominium unit;
             2319          (ii) a cooperative unit;


             2320          (iii) a manufactured home; or
             2321          (iv) a house.
             2322          [(q)] (s) "Entity" means:
             2323          (i) a corporation;
             2324          (ii) a limited liability company;
             2325          (iii) a partnership;
             2326          (iv) a company;
             2327          (v) an association;
             2328          (vi) a joint venture;
             2329          (vii) a business trust;
             2330          (viii) a trust; or
             2331          (ix) another organization.
             2332          [(r)] (t) "Executive director" means the executive director of the Department of
             2333      Commerce.
             2334          (u) "Federal licensing requirements" means Secure and Fair Enforcement for Mortgage
             2335      Licensing, 12 U.S.C. Sec. 5101, et seq.
             2336          [(s)] (v) "Inactive status" means a dormant status into which an unexpired license is
             2337      placed when the holder of the license is not currently engaging in the business of residential
             2338      mortgage loans.
             2339          [(t)] (w) "Licensee" means a person licensed with the division under this chapter.
             2340          [(u)] (x) "Licensing examination" means the examination required by Section
             2341      61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
             2342          [(v)] (y) (i) Except as provided in Subsection (1)[(v)](y)(ii), "mortgage loan originator"
             2343      means an individual who for compensation or in expectation of compensation:
             2344          (A) (I) takes a residential mortgage loan application; or
             2345          [(B)] (II) offers or negotiates terms of a residential mortgage loan[.]; and
             2346          (B) is licensed as a mortgage loan originator in accordance with this chapter.
             2347          (ii) "[Loan] Mortgage loan originator" does not include a person who:
             2348          (A) is described in Subsection (1)[(v)](y)(i), but who performs exclusively
             2349      administrative or clerical tasks as described in Subsection (1)(f)(ii)(A);
             2350          [(B) unless compensated by a lender, a principal lending manager, or an agent of a


             2351      lender or principal lending manager:]
             2352          [(I) only performs real estate brokerage activities; and]
             2353          [(II) is licensed under Chapter 2, Division of Real Estate; and]
             2354          (B) (I) is licensed under Chapter 2f, Real Estate Licensing and Practices Act;
             2355          (II) performs only real estate brokerage activities; and
             2356          (III) receives no compensation from:
             2357          (Aa) a lender;
             2358          (Bb) a principal lending manager; or
             2359          (Cc) an agent of a lender or principal lending manager; or
             2360          (C) is solely involved in extension of credit relating to a timeshare plan, as defined in
             2361      11 U.S.C. Sec. 101(53D).
             2362          [(w) "Mortgage officer" means an individual who is licensed with the division to
             2363      transact the business of residential mortgage loans through a principal lending manager.]
             2364          [(x)] (z) "Nationwide database" means the Nationwide Mortgage Licensing System and
             2365      Registry, authorized under [Secure and Fair Enforcement for Mortgage Licensing, 12 U.S.C.
             2366      Sec. 5101, et seq] federal licensing requirements.
             2367          [(y)] (aa) "Nontraditional mortgage product" means a mortgage product other than a
             2368      30-year fixed rate mortgage.
             2369          [(z)] (bb) "Person" means an individual or entity.
             2370          [(aa)] (cc) "Prelicensing education" means education taken by an individual seeking to
             2371      be licensed under this chapter in order to meet the education requirements imposed by Section
             2372      61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
             2373          [(bb)] (dd) (i) "Principal lending manager" means an individual licensed as a principal
             2374      lending manager under Section 61-2c-206 to transact the business of residential mortgage
             2375      loans.
             2376          (ii) An individual [licensed as] who is a principal lending manager may transact the
             2377      business of residential mortgage loans as a mortgage [officer] loan originator.
             2378          [(cc)] (ee) "Record" means information that is:
             2379          (i) prepared, owned, received, or retained by a person; and
             2380          (ii) (A) inscribed on a tangible medium; or
             2381          (B) (I) stored in an electronic or other medium; and


             2382          (II) [retrievable] in a perceivable and reproducible form.
             2383          [(dd)] (ff) "Residential mortgage loan" means an extension of credit, if:
             2384          (i) the loan or extension of credit is secured by a:
             2385          (A) mortgage;
             2386          (B) deed of trust; or
             2387          (C) consensual security interest;
             2388          (ii) the mortgage, deed of trust, or consensual security interest described in Subsection
             2389      (1)[(dd)](ff)(i):
             2390          (A) is on a dwelling located in the state; and
             2391          (B) is created with the consent of the owner of the residential real property; and
             2392          (iii) solely for the purposes of defining "mortgage loan originator," the extension of
             2393      credit is primarily for personal, family, or household use.
             2394          (gg) "Sponsorship" means an association in accordance with Section 61-2c-209
             2395      between an individual licensed under this chapter and an entity licensed under this chapter.
             2396          [(ee)] (hh) "State" means:
             2397          (i) a state, territory, or possession of the United States;
             2398          (ii) the District of Columbia; or
             2399          (iii) the Commonwealth of Puerto Rico.
             2400          [(ff)] (ii) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
             2401          (jj) "Utah-specific" means an educational or examination requirement under this
             2402      chapter that relates specifically to Utah.
             2403          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             2404      meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
             2405      Utah Administrative Rulemaking Act.
             2406          (b) If a term not defined in this section is not defined by rule, the term shall have the
             2407      meaning commonly accepted in the business community.
             2408          Section 45. Section 61-2c-103 is amended to read:
             2409           61-2c-103. Powers and duties of the division.
             2410          (1) The division shall administer this chapter.
             2411          (2) In addition to a power or duty expressly provided in this chapter, the division may:
             2412          (a) receive and act on a complaint including:


             2413          (i) taking action designed to obtain voluntary compliance with this chapter; or
             2414          (ii) commencing an administrative or judicial proceeding on the division's own
             2415      initiative;
             2416          (b) establish one or more programs for the education of consumers with respect to
             2417      residential mortgage loans;
             2418          (c) (i) make one or more studies appropriate to effectuate the purposes and policies of
             2419      this chapter; and
             2420          (ii) make the results of the studies described in Subsection (2)(c)(i) available to the
             2421      public;
             2422          (d) visit and investigate a person licensed under this chapter, regardless of whether the
             2423      person is located in Utah; and
             2424          (e) employ one or more necessary hearing examiners, investigators, clerks, and other
             2425      employees and agents.
             2426          (3) The division shall make rules for the administration of this chapter in accordance
             2427      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, including:
             2428          (a) licensure procedures for:
             2429          (i) a person required by this chapter to obtain a license with the division; and
             2430          (ii) the establishment of a branch office by an entity;
             2431          (b) proper handling of [monies] money received by a licensee;
             2432          (c) record-keeping requirements by a licensee, including proper disposal of a record;
             2433          (d) certification procedures for certifying an education provider; and
             2434          (e) standards of conduct for a licensee or certified education provider.
             2435          (4) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
             2436      Administrative Rulemaking Act, require as a condition of maintaining a license or certification
             2437      under this chapter that a person comply with a requirement of the nationwide database if:
             2438          (a) required for uniformity amongst states; and
             2439          (b) not inconsistent with this chapter.
             2440          (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
             2441      Administrative Rulemaking Act, provide a process under which an individual may challenge
             2442      information contained in the nationwide database.
             2443          [(6) The division may make available to the public a list of the names and mailing


             2444      addresses of licensees:]
             2445          [(a) either directly or through a third party; and]
             2446          [(b) at a reasonable cost.]
             2447          [(7)] (6) The division shall annually:
             2448          (a) review the requirements related to the nationwide database imposed by federal
             2449      [law] licensing requirements or the nationwide database on:
             2450          (i) the division;
             2451          (ii) a licensee under this chapter;
             2452          (iii) a certified education provider; or
             2453          (iv) an approved examination provider; and
             2454          (b) after the review required by Subsection [(7)] (6)(a):
             2455          (i) report to the Business and Labor Interim Committee the impact of the requirements
             2456      on the implementation by the division of this chapter; and
             2457          (ii) recommend legislation, if any, to the Business and Labor Interim Committee
             2458      related to how the division should coordinate with the nationwide database.
             2459          [(8)] (7) The division may enter into a relationship or contract with the nationwide
             2460      database or another entity designated by the nationwide database to do the following related to
             2461      a licensee or other person subject to this chapter:
             2462          (a) collect or maintain a record; and
             2463          (b) process a transaction fee or other fee.
             2464          [(9)] (8) The division shall regularly report the following to the nationwide database:
             2465          (a) a violation of this chapter;
             2466          (b) disciplinary action under this chapter; and
             2467          (c) other information relevant to this chapter.
             2468          (9) If a person pays a fee or costs to the division with a negotiable instrument and the
             2469      negotiable instrument is not honored for payment:
             2470          (a) the transaction for which the payment is submitted is voidable by the division;
             2471          (b) the division may reverse the transaction if payment of the applicable fee or costs is
             2472      not received in full; and
             2473          (c) the person's license, certification, or registration is automatically suspended:
             2474          (i) beginning the day on which the payment is due; and


             2475          (ii) ending the day on which payment is made in full.
             2476          Section 46. Section 61-2c-104 is amended to read:
             2477           61-2c-104. Residential Mortgage Regulatory Commission.
             2478          (1) (a) There is created within the division the "Residential Mortgage Regulatory
             2479      Commission" consisting of the following members appointed by the executive director with the
             2480      approval of the governor:
             2481          (i) four members who:
             2482          (A) have at least three years of experience in transacting the business of residential
             2483      mortgage loans; and
             2484          (B) are licensed under this chapter at the time of and during appointment; and
             2485          (ii) one member from the general public.
             2486          (b) (i) The executive director with the approval of the governor may appoint an
             2487      alternate member to the board.
             2488          (ii) The alternate member shall:
             2489          (A) at the time of the appointment, have at least three years of experience in transacting
             2490      the business of residential mortgage loans; and
             2491          (B) be licensed under this chapter at the time of and during appointment.
             2492          (2) (a) Except as required by Subsection (2)(b), the executive director shall appoint a
             2493      new member or reappointed member subject to appointment by the executive director to a
             2494      four-year term ending June 30.
             2495          (b) Notwithstanding the requirements of Subsection (2)(a), the executive director shall,
             2496      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms
             2497      of commission members are staggered so that approximately half of the commission is
             2498      appointed every two years.
             2499          (c) If a vacancy occurs in the membership of the commission for any reason, the
             2500      executive director shall appoint a replacement for the unexpired term.
             2501          (d) A member shall remain on the commission until the member's successor is
             2502      appointed and qualified.
             2503          (3) Members of the commission shall annually select one member to serve as chair.
             2504          (4) (a) The commission shall meet at least quarterly.
             2505          (b) The director may call a meeting in addition to the meetings required by Subsection


             2506      (4)(a):
             2507          (i) at the discretion of the director;
             2508          (ii) at the request of the chair of the commission; or
             2509          (iii) at the written request of three or more commission members.
             2510          (5) (a) Three members of the commission constitute a quorum for the transaction of
             2511      business.
             2512          (b) If a quorum of members is unavailable for any meeting and an alternate member is
             2513      appointed to the commission by the executive director with the approval of the governor, the
             2514      alternate member shall serve as a regular member of the commission for that meeting if with
             2515      the presence of the alternate member there is a quorum present at the meeting.
             2516          (c) The action of a majority of a quorum present is an action of the commission.
             2517          (6) (a) (i) A member who is not a government employee may not receive compensation
             2518      or benefits for the member's services, but may receive per diem and expenses incurred in the
             2519      performance of the member's official duties at the rates established by the Division of Finance
             2520      under Sections 63A-3-106 and 63A-3-107 .
             2521          (ii) A member who is not a government employee may decline to receive per diem and
             2522      expenses for the member's service.
             2523          (b) (i) A state government officer and employee member who does not receive salary,
             2524      per diem, or expenses from the member's agency for the member's service may receive per
             2525      diem and expenses incurred in the performance of the member's official duties from the
             2526      commission at the rates established by the Division of Finance under Sections 63A-3-106 and
             2527      63A-3-107 .
             2528          (ii) A state government officer and employee member may decline to receive per diem
             2529      and expenses for the member's service.
             2530          (7) In addition to a duty or power expressly provided for elsewhere in this chapter, the
             2531      commission shall:
             2532          (a) except as provided in Subsection 61-2c-202 [(2)](3), concur in the licensure or
             2533      denial of licensure of a person under this chapter in accordance with Part 2, Licensure;
             2534          (b) take disciplinary action with the concurrence of the director in accordance with Part
             2535      4, Enforcement; and
             2536          (c) advise the division concerning matters related to the administration and


             2537      enforcement of this chapter.
             2538          Section 47. Section 61-2c-105 is amended to read:
             2539           61-2c-105. Scope of chapter -- Exemptions.
             2540          (1) (a) Except as to an individual who will engage in an activity as a mortgage loan
             2541      originator, this chapter applies to a closed-end residential mortgage loan secured by a first lien
             2542      or equivalent security interest on a dwelling.
             2543          (b) This chapter does not apply to a transaction covered by Title 70C, Utah Consumer
             2544      Credit Code.
             2545          (2) The following are exempt from this chapter:
             2546          (a) the federal government;
             2547          (b) a state;
             2548          (c) a political subdivision of a state;
             2549          (d) an agency of or entity created by a governmental entity described in Subsections
             2550      (2)(a) through (c) including:
             2551          (i) the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah Housing
             2552      Corporation Act;
             2553          (ii) the Federal National Mortgage Corporation;
             2554          (iii) the Federal Home Loan Mortgage Corporation;
             2555          (iv) the Federal Deposit Insurance Corporation;
             2556          (v) the Resolution Trust Corporation;
             2557          (vi) the Government National Mortgage Association;
             2558          (vii) the Federal Housing Administration;
             2559          (viii) the National Credit Union Administration;
             2560          (ix) the Farmers Home Administration; and
             2561          (x) the United States Department of Veterans Affairs;
             2562          (e) a depository institution;
             2563          (f) an [affiliate of] entity that controls, is controlled by, or is under common control
             2564      with a depository institution;
             2565          (g) an employee or agent of an entity described in Subsections (2)(a) through (f):
             2566          (i) when that person acts on behalf of the entity described in Subsections (2)(a) through
             2567      (f); and


             2568          (ii) including an employee of:
             2569          (A) a depository institution;
             2570          (B) a subsidiary of a depository institution that is:
             2571          (I) owned and controlled by the depository institution; and
             2572          (II) regulated by a federal banking agency, as defined in 12 U.S.C. Sec. 5102; or
             2573          (C) an institution regulated by the Farm Credit Administration;
             2574          (h) except as provided in Subsection (3), a person who:
             2575          (i) makes a loan:
             2576          (A) secured by an interest in real property;
             2577          (B) with the person's own money; and
             2578          (C) for the person's own investment; and
             2579          (ii) that does not engage in the business of making loans secured by an interest in real
             2580      property;
             2581          (i) except as provided in Subsection (3), a person who receives a mortgage, deed of
             2582      trust, or consensual security interest on real property if the individual or entity:
             2583          (i) is the seller of real property; and
             2584          (ii) receives the mortgage, deed of trust, or consensual security interest on real property
             2585      as security for a separate money obligation;
             2586          (j) a person who receives a mortgage, deed of trust, or consensual security interest on
             2587      real property if:
             2588          (i) the person receives the mortgage, deed of trust, or consensual security interest as
             2589      security for an obligation payable on an installment or deferred payment basis;
             2590          (ii) the obligation described in Subsection (2)(j)(i) arises from a person providing
             2591      materials or services used in the improvement of the real property that is the subject of the
             2592      mortgage, deed of trust, or consensual security interest; and
             2593          (iii) the mortgage, deed of trust, or consensual security interest is created without the
             2594      consent of the owner of the real property that is the subject of the mortgage, deed of trust, or
             2595      consensual security interest;
             2596          (k) a nonprofit corporation that:
             2597          (i) is exempt from paying federal income taxes;
             2598          (ii) is certified by the United States Small Business Administration as a small business


             2599      investment company;
             2600          (iii) is organized to promote economic development in this state; and
             2601          (iv) has as its primary activity providing financing for business expansion;
             2602          (l) except as provided in Subsection (3), a court appointed fiduciary; or
             2603          (m) an attorney admitted to practice law in this state:
             2604          (i) if the attorney is not principally engaged in the business of negotiating residential
             2605      mortgage loans; and
             2606          (ii) when the attorney renders services in the course of the attorney's practice as an
             2607      attorney.
             2608          (3) An individual who will engage in an activity as a mortgage loan originator is
             2609      exempt from this chapter only if the individual is an employee or agent exempt under
             2610      Subsection (2)(g).
             2611          (4) (a) Notwithstanding Subsection (2)(m), an attorney exempt from this chapter may
             2612      not engage in conduct described in Section 61-2c-301 when transacting business of residential
             2613      mortgage loans.
             2614          (b) If an attorney exempt from this chapter violates Subsection (4)(a), the attorney:
             2615          (i) is not subject to enforcement by the division under Part 4, Enforcement; and
             2616          (ii) is subject to disciplinary action generally applicable to an attorney admitted to
             2617      practice law in this state.
             2618          (c) If the division receives a complaint alleging an attorney exempt from this chapter is
             2619      in violation of Subsection (4)(a), the division shall forward the complaint to the Utah State Bar
             2620      for disciplinary action.
             2621          (5) (a) An individual who is exempt under Subsection (2) or (3) may voluntarily obtain
             2622      a license under this chapter by complying with Part 2, Licensure.
             2623          (b) An individual who voluntarily obtains a license pursuant to this Subsection (5)
             2624      shall comply with all the provisions of this chapter.
             2625          Section 48. Section 61-2c-106 is amended to read:
             2626           61-2c-106. Addresses provided the division.
             2627          (1) (a) [In providing an address to the division under this chapter, a] A person shall
             2628      provide a physical location or street address when the person provides the nationwide database
             2629      an address required by the division.


             2630          (b) The following when provided under this chapter is public information:
             2631          (i) a business address; or
             2632          (ii) a mailing address.
             2633          (2) A licensee is considered to have received a notification that is mailed to the last
             2634      mailing address furnished to the [division] nationwide database by:
             2635          (a) if the licensee is an individual, the individual; or
             2636          (b) if the licensee is an entity, the principal lending manager of the entity.
             2637          Section 49. Section 61-2c-201 is amended to read:
             2638           61-2c-201. Licensure required of person engaged in the business of residential
             2639      mortgage loans -- Mortgage loan originator -- Principal lending manager.
             2640          (1) Unless exempt from this chapter under Section 61-2c-105 , a person may not
             2641      transact the business of residential mortgage loans without obtaining a license under this
             2642      chapter.
             2643          (2) For purposes of this chapter, a person transacts business in this state if:
             2644          (a) (i) the person engages in an act that constitutes the business of residential mortgage
             2645      loans; and
             2646          (ii) (A) the act described in Subsection (2)(a)(i) is directed to or received in this state;
             2647      and
             2648          (B) the real property that is the subject of the act described in Subsection (2)(a)(i) is
             2649      located in this state; or
             2650          (b) a representation is made by the person that the person transacts the business of
             2651      residential mortgage loans in this state.
             2652          (3) An individual who has an ownership interest in an entity required to be licensed
             2653      under this chapter is not required to obtain an individual license under this chapter unless the
             2654      individual transacts the business of residential mortgage loans.
             2655          (4) Unless otherwise exempted under this chapter, licensure under this chapter is
             2656      required of both:
             2657          (a) the individual who directly transacts the business of residential mortgage loans; and
             2658          (b) if the individual transacts business as an employee or agent of an entity or
             2659      individual, the entity or individual for whom the employee or agent transacts the business of
             2660      residential mortgage loans.


             2661          [(5) (a) An individual licensed under this chapter may not engage in the business of
             2662      residential mortgage loans on behalf of more than one entity at the same time.]
             2663          [(b) This Subsection (5) does not restrict the number of:]
             2664          [(i) different lenders a person may use as a funding source for residential mortgage
             2665      loans; or]
             2666          [(ii) entities in which an individual may have an ownership interest, regardless of
             2667      whether the entities are:]
             2668          [(A) licensed under this chapter; or]
             2669          [(B) exempt under Section 61-2c-105 .]
             2670          [(6) An individual licensed under this chapter may not transact the business of
             2671      residential mortgage loans for the following at the same time:]
             2672          [(a) an entity licensed under this chapter; and]
             2673          [(b) an entity that is exempt from licensure under Section 61-2c-105 .]
             2674          [(7) A mortgage officer may not receive consideration for transacting the business of
             2675      residential mortgage loans from any person or entity except the principal lending manager with
             2676      whom the mortgage officer is licensed.]
             2677          [(8) A mortgage officer shall conduct all business of residential mortgage loans:]
             2678          [(a) through the principal lending manager with which the individual is licensed; and]
             2679          [(b) in the business name under which the principal lending manager is authorized by
             2680      the division to do business.]
             2681          [(9)] (5) (a) If an entity that is [authorized by this chapter] licensed to transact the
             2682      business of residential mortgage loans transacts the business of residential mortgage loans
             2683      under an assumed business name, the entity shall in accordance with rules made by the
             2684      division:
             2685          (i) register the assumed name [with the division] under this chapter; and
             2686          (ii) furnish [the division] proof that the assumed business name is filed with the
             2687      Division of Corporations and Commercial Code pursuant to Title 42, Chapter 2, Conducting
             2688      Business Under Assumed Name.
             2689          (b) The division may charge a fee established in accordance with Section 63J-1-504 for
             2690      registering an assumed name pursuant to this Subsection [(9)] (5).
             2691          [(10) A licensee whose license is in inactive status may not transact the business of


             2692      residential mortgage loans.]
             2693          Section 50. Section 61-2c-202 is amended to read:
             2694           61-2c-202. Licensure procedures.
             2695          (1) To apply for licensure under this chapter an applicant shall in a manner provided by
             2696      the division by rule:
             2697          (a) if the applicant is an entity, submit [to the division] a licensure statement that:
             2698          (i) lists any name under which the [applicant] entity will transact business in this state;
             2699          (ii) lists the address of the principal business location of the [applicant] entity;
             2700          [(iii) if the applicant is an entity:]
             2701          [(A) lists] (iii) identifies the principal lending manager of the entity; [and]
             2702          [(B)] (iv) contains the signature of the principal lending manager;
             2703          [(iv) demonstrates that the applicant meets the qualifications listed in Section
             2704      61-2c-203 ;]
             2705          [(v) if the applicant is an entity, lists:]
             2706          [(A) all jurisdictions in which the entity is registered, licensed, or otherwise regulated
             2707      in the business of residential mortgage loans; and]
             2708          [(B) the history of any disciplinary action or adverse administrative action taken
             2709      against the entity by a regulatory agency; and]
             2710          (v) identifies the one or more control persons for the entity;
             2711          (vi) identifies the jurisdictions in which the entity is registered, licensed, or otherwise
             2712      regulated in the business of residential mortgage loans;
             2713          (vii) discloses any adverse administrative action taken by an administrative agency
             2714      against:
             2715          (A) the entity; or
             2716          (B) any control person for the entity;
             2717          (viii) discloses any history of criminal proceedings involving any control person for the
             2718      entity; and
             2719          [(vi)] (ix) includes any information required by the division by rule;
             2720          (b) if the applicant is an individual[, the applicant shall provide]:
             2721          [(i) (A) a fingerprint card in a form acceptable to the division; and]
             2722          [(B) consent to a criminal background check by:]


             2723          [(I) the Utah Bureau of Criminal Identification; and]
             2724          (i) submit a licensure statement that identifies the entity with which the applicant is
             2725      sponsored;
             2726          (ii) authorize a criminal background check through the nationwide database accessing:
             2727          (A) the Utah Bureau of Criminal Identification, if the nationwide database is able to
             2728      obtain information from the Utah Bureau of Criminal Identification; and
             2729          [(II)] (B) the Federal Bureau of Investigation;
             2730          [(ii)] (iii) submit evidence using a method approved by the division by rule of having
             2731      successfully completed approved prelicensing education in accordance with Section
             2732      61-2c-204.1 ;
             2733          [(iii)] (iv) submit evidence using a method approved by the division by rule of having
             2734      successfully passed [a] any required licensing examination in accordance with Section
             2735      61-2c-204.1 ; and
             2736          [(iv) if the applicant will engage in an activity as a loan originator:]
             2737          [(A) the individual's unique identifier;]
             2738          [(B) any other evidence required by the division by rule demonstrating that the
             2739      individual has submitted the following to the nationwide database:]
             2740          [(I) a fingerprint card in a form acceptable to the nationwide database;]
             2741          [(II) consent to a criminal background check by:]
             2742          [(Aa) the Utah Bureau of Criminal Identification; and]
             2743          [(Bb) the Federal Bureau of Investigation; and]
             2744          [(III) information requested by the nationwide database regarding personal history and
             2745      experience including authorization for the nationwide database and division to obtain:]
             2746          [(Aa) an independent credit report obtained from a consumer reporting agency
             2747      described in 15 U.S.C. Sec. 1681 et seq.; and]
             2748          [(Bb) information related to an administrative, civil, or criminal finding of a
             2749      governmental jurisdiction; and]
             2750          (v) submit evidence using a method approved by the division by rule of having
             2751      successfully registered in the nationwide database, including paying a fee required by the
             2752      nationwide database; and
             2753          (c) pay to the division:


             2754          (i) an application fee established by the division in accordance with Section 63J-1-504 ;
             2755      and
             2756          (ii) the reasonable expenses incurred by the division in processing the application for
             2757      licensure[, including the costs incurred by the division under Subsection (4)].
             2758          [ (2) (a) The division shall issue a license to an applicant if the division, with the
             2759      concurrence of the commission, finds that the applicant:]
             2760          [(i) meets the qualifications of Sections 61-2c-203 and 61-2c-204.1 ; and]
             2761          [(ii) complies with this section.]
             2762          (2) (a) Upon receiving an application, the division, with the concurrence of the
             2763      commission, shall determine whether the applicant:
             2764          (i) meets the qualifications for licensure; and
             2765          (ii) complies with this section.
             2766          (b) If the division, with the concurrence of the commission, determines that an
             2767      applicant meets the qualifications for licensure and complies with this section, the division
             2768      shall issue the applicant a license.
             2769          (c) If the division, with the concurrence of the commission, determines that the
             2770      division requires more information to make a determination under Subsection (2)(a), the
             2771      division may:
             2772          (i) hold the application pending further information about an applicant's criminal
             2773      background or history related to adverse administrative action in any jurisdiction; or
             2774          (ii) issue a conditional license:
             2775          (A) pending the completion of a criminal background check; and
             2776          (B) subject to suspension or revocation if the criminal background check reveals that
             2777      the applicant did not truthfully or accurately disclose on the licensing application a criminal
             2778      history or other history related to adverse administrative action.
             2779          [(b)] (3) (a) The commission may delegate to the division the authority to:
             2780          (i) review a class or category of application for an initial or renewed license;
             2781          (ii) determine whether an applicant meets the [licensing criteria in Sections 61-2c-203
             2782      and 61-2c-204.1] qualifications for licensure;
             2783          (iii) conduct a necessary hearing on an application; and
             2784          (iv) approve or deny a license application without concurrence by the commission.


             2785          [(c)] (b) If the commission delegates to the division the authority to approve or deny an
             2786      application without concurrence by the commission and the division denies an application for
             2787      licensure, the applicant who is denied licensure may petition the commission for review of the
             2788      denial.
             2789          [(d)] (c) An applicant who is denied licensure under Subsection [(2)] (3)(b) may seek
             2790      agency review by the executive director only after the commission reviews the division's denial
             2791      of the applicant's application.
             2792          [(3)] (d) Subject to Subsection [(2)(d)](3)(c) and in accordance with Title 63G, Chapter
             2793      4, Administrative Procedures Act, an applicant who is denied licensure under this chapter may
             2794      submit a request for agency review to the executive director within 30 days following the day
             2795      on which the commission order denying the licensure is issued.
             2796          [(4) (a) The division shall request the Department of Public Safety to complete:]
             2797          [(i) for an applicant who will engage in an activity as a loan originator, a criminal
             2798      background check by the Utah Bureau of Criminal Identification; or]
             2799          [(ii) for an applicant who will not engage in an activity as a loan originator, a Federal
             2800      Bureau of Investigation criminal background check through a national criminal history system.]
             2801          [(b) An applicant shall pay the cost of:]
             2802          [(i) the fingerprinting required by this section; and]
             2803          [(ii) the criminal background check required by this section.]
             2804          [(c) The funds paid by an applicant for the cost of the criminal background check shall
             2805      be nonlapsing.]
             2806          Section 51. Section 61-2c-203 is amended to read:
             2807           61-2c-203. General qualifications for licensure.
             2808          (1) To qualify for licensure under this chapter, [an individual:] a person shall
             2809      demonstrate through procedures established by rule made by the division in accordance with
             2810      Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2811          [(a) shall demonstrate:]
             2812          [(i)] (a) financial responsibility;
             2813          [(ii)] (b) good moral character, honesty, integrity, and truthfulness; and
             2814          [(iii)] (c) the competence to transact the business of residential mortgage loans,
             2815      including general fitness such as to command the confidence of the community and to warrant


             2816      a determination that the [individual] person will operate honestly, fairly, and efficiently within
             2817      the purposes of this chapter[;].
             2818          [(b) except as provided in Subsection (3), may not have]
             2819          (2) If an applicant is an individual, the applicant may not have:
             2820          (a) been convicted of, pled guilty to, pled no contest to, pled guilty in a similar manner
             2821      to, or resolved by diversion or its equivalent:
             2822          (i) a felony involving an act of fraud, dishonesty, a breach of trust, or money
             2823      laundering; or
             2824          (ii) a felony in the seven years preceding the day on which an application is submitted
             2825      to the division;
             2826          [(iii) in the 10 years preceding the day on which an application is submitted to the
             2827      division of:]
             2828          [(A) a felony or class A misdemeanor involving moral turpitude; or]
             2829          [(B) a crime in another jurisdiction that is the equivalent of a felony or class A
             2830      misdemeanor involving moral turpitude;]
             2831          [(iv)] (b) in the five years preceding the day on which an application is submitted to the
             2832      division, been convicted of, pled guilty to, pled no contest to, pled guilty in a similar manner
             2833      to, or resolved by diversion its equivalent:
             2834          [(A)] (i) a class B or class C misdemeanor involving moral turpitude; or
             2835          [(B)] (ii) a crime in another jurisdiction that is the equivalent of a class B or class C
             2836      misdemeanor involving moral turpitude;
             2837          (c) [if the applicant will engage in an activity as a loan originator, may not have] had a
             2838      license as a mortgage loan originator revoked by a governmental jurisdiction at any time;
             2839          (d) [except as provided in Subsection (3), may not have] had a license or registration
             2840      suspended, [revoked,] surrendered, canceled, or denied in the five years preceding the date the
             2841      individual applies for licensure if:
             2842          (i) the registration or license is issued by this state or another jurisdiction; and
             2843          (ii) the suspension, [revocation,] surrender, [probation, fine,] cancellation, or denial is
             2844      based on misconduct in a professional capacity that relates to moral character, honesty,
             2845      integrity, truthfulness, or the competency to transact the business of residential mortgage loans;
             2846          (e) [except as provided in Subsection (3), may not have] been the subject of a bar by


             2847      the Securities and Exchange Commission, the New York Stock Exchange, or the National
             2848      Association of Securities Dealers within the five years preceding the date the individual applies
             2849      for registration; [and] or
             2850          (f) [may not have] had a [temporary or] permanent injunction entered against the
             2851      individual:
             2852          (i) by a court or [licensing] administrative agency; and
             2853          (ii) on the basis of:
             2854          (A) conduct or a practice involving the business of residential mortgage loans; or
             2855          (B) conduct involving fraud, misrepresentation, or deceit.
             2856          [(2) To qualify for licensure under this chapter an entity may not have:]
             2857          [(a) any of the following individuals in management]
             2858          (3) If an applicant is an entity, the applicant may not have a control person who fails to
             2859      meet the requirements of Subsection [(1)] (2) for an individual [who will engage in an activity
             2860      as a loan originator:] applicant.
             2861          [(i) a manager or a managing partner;]
             2862          [(ii) a director;]
             2863          [(iii) an executive officer; or]
             2864          [(iv) an individual occupying a position or performing functions similar to those
             2865      described in Subsections (2)(a)(i) through (iii); or]
             2866          [(b) a principal lending manager who fails to meet the requirements of Subsection (1)
             2867      for an individual who will engage in an activity as a loan originator.]
             2868          [(3) (a) Notwithstanding the failure to meet the requirements of Subsections (1)(b)(iii),
             2869      (b)(iv), (d), (e), and (f) and except as provided in Subsection (3)(b), the division may permit a
             2870      person to be licensed under this chapter if the individual applicant or a person listed in
             2871      Subsection (2):]
             2872          [(i) fails to meet the requirements of Subsections (1)(b)(iii), (b)(iv), (d), (e), and (f);]
             2873          [(ii) otherwise meets the qualifications for licensure; and]
             2874          [(iii) provides evidence satisfactory to the division with the concurrence of the
             2875      commission that the individual applicant or person described in Subsection (2):]
             2876          [(A) is of good moral character;]
             2877          [(B) is honest;]


             2878          [(C) has integrity;]
             2879          [(D) is truthful; and]
             2880          [(E) has the competency to transact the business of residential mortgage loans.]
             2881          [(b) The division may not license an individual under this Subsection (3) if that
             2882      individual will engage in an activity as a loan originator.]
             2883          Section 52. Section 61-2c-204.1 is amended to read:
             2884           61-2c-204.1. Education providers -- Education requirements -- Examination
             2885      requirements.
             2886          (1) As used in this section:
             2887          (a) "Approved continuing education course" means a course of continuing education
             2888      that is approved by the nationwide database.
             2889          (b) "Approved prelicensing education course" means a course of prelicensing education
             2890      that is approved by the nationwide database.
             2891          (2) (a) A person may not provide Utah-specific prelicensing education or Utah-specific
             2892      continuing education if that person is not certified by the division under this chapter.
             2893          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2894      division shall make rules establishing:
             2895          (i) certification criteria and procedures to become a certified education provider; and
             2896          (ii) standards of conduct for a certified education provider.
             2897          (c) In accordance with the rules described in Subsection (2)(b), the division shall
             2898      certify a person to provide [one or more of the following:] the education described in
             2899      Subsection (2)(a).
             2900          [(i) prelicensing education; or]
             2901          [(ii) continuing education.]
             2902          (d) [The] (i) Upon request, the division shall make available to the public a list of the
             2903      names and addresses of certified education providers either directly or through a third party.
             2904          (ii) A person who requests a list under this Subsection (2)(d) shall pay the costs
             2905      incurred by the division to make the list available.
             2906          (e) In certifying [an] a person as a certified education provider, the division by rule
             2907      may:
             2908          (i) distinguish between an individual instructor and an entity that provides education;


             2909      or
             2910          (ii) approve:
             2911          (A) Utah-specific prelicensing education; or
             2912          (B) Utah-specific continuing education courses.
             2913          (3) (a) The division may not:
             2914          (i) license an individual under this chapter as a mortgage [officer] loan originator who
             2915      has not completed the prelicensing education required by this section:
             2916          (A) before taking the one or more licensing [examination] examinations required by
             2917      Subsection (4); [and]
             2918          (B) in the number of hours, not to exceed 90 hours, required by rule made by the
             2919      division in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act[,
             2920      except that the division shall require that a person who will engage in an activity as a loan
             2921      originator complete at least 20 hours of approved prelicensing education courses that include at
             2922      least:]; and
             2923          [(I) three hours of federal law and regulation;]
             2924          [(II) three hours of ethics that includes instruction on fraud, consumer protection, and
             2925      fair lending issues; and]
             2926          [(III) two hours of training related to lending standards for the nontraditional mortgage
             2927      product marketplace;]
             2928          (C) that includes the prelicensing education required by federal licensing regulations;
             2929          (ii) subject to Subsection (6), renew a license of an individual who has not completed
             2930      the continuing education required by this section and Section 61-2c-205 [; or]:
             2931          (A) in the number of hours required by rule made by the division in accordance with
             2932      Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             2933          (B) that includes the continuing education required by federal licensing regulations; or
             2934          (iii) [the division may not] license an individual under this chapter as a principal
             2935      lending manager who has not completed the prelicensing education required by Section
             2936      61-2c-206 before taking the licensing examination required by Section 61-2c-206 .
             2937          (b) Subject to Subsection (3)(a) and with the concurrence of the division, the
             2938      commission shall determine:
             2939          (i) except as provided in Subsection 61-2c-206 (1)[(c)](b), the appropriate number of


             2940      hours of prelicensing education required to obtain a license;
             2941          (ii) the subject matters of the prelicensing education required under this section and
             2942      Section 61-2c-206 , including online education or distance learning options;
             2943          (iii) the appropriate number of hours of continuing education required to renew a
             2944      license[, except that at a minimum the continuing education required for a person who engages
             2945      in an activity as a loan originator shall include at least eight hours annually of approved
             2946      continuing education courses that include at least:]; and
             2947          [(A) three hours of federal law and regulations;]
             2948          [(B) two hours of ethics, that include instruction on fraud, consumer protection, and
             2949      fair lending issues; and]
             2950          [(C) two hours of training related to lending standards for the nontraditional mortgage
             2951      product marketplace; and]
             2952          (iv) the subject matter of courses the division may accept for continuing education
             2953      purposes.
             2954          (c) The commission may appoint a committee to make recommendations to the
             2955      commission concerning approval of prelicensing education and continuing education courses,
             2956      except that the commission shall appoint at least one member to the committee to represent
             2957      each association that represents a significant number of individuals licensed under this chapter.
             2958          (d) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
             2959      Administrative Rulemaking Act, provide for the calculation of continuing education credits,
             2960      except that the rules shall be consistent with 12 U.S.C. Sec. 5105.
             2961          (4) (a) The division may not license an individual under this chapter unless that
             2962      individual first passes [a licensing examination] the one or more licensing examinations that:
             2963          (i) are adopted by the division in accordance with Title 63G, Chapter 3, Utah
             2964      Administrative Rulemaking Act;
             2965          (ii) meet the minimum federal licensing requirements; and
             2966          (iii) are administered by an approved examination provider.
             2967          (b) The commission, with the concurrence of the division, shall determine the
             2968      requirements for:
             2969          (i) a licensing examination that at least:
             2970          [(A) includes the qualified written test developed by the nationwide database; and]


             2971          (A) meet the minimum federal licensing requirements; and
             2972          (B) tests knowledge of the:
             2973          (I) fundamentals of the English language;
             2974          (II) arithmetic;
             2975          (III) provisions of this chapter;
             2976          (IV) rules adopted under this chapter;
             2977          (V) basic residential mortgage principles and practices; and
             2978          (VI) any other aspect of Utah law the commission determines is appropriate; and
             2979          (ii) a licensing examination required under Section 61-2c-206 that:
             2980          [(A) includes the qualified written test developed by the nationwide database; and]
             2981          (A) meets the requirements of Subsection (4)(b)(i); and
             2982          (B) tests knowledge of the:
             2983          (I) advanced residential mortgage principles and practices; and
             2984          (II) other aspects of Utah law the commission, with the concurrence of the division,
             2985      determines appropriate.
             2986          (c) An individual who will engage in an activity as a mortgage loan originator, is not
             2987      considered to have passed a licensing examination if that individual has not met the minimum
             2988      competence requirements of 12 U.S.C. Sec. 5104(d)(3).
             2989          (5) When reasonably practicable, the commission and the division shall make the
             2990      [licensing examination, prelicensing education, and continuing education] Utah-specific
             2991      education requirements described in this section available electronically through one or more
             2992      distance education methods approved by the commission and division.
             2993          (6) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             2994      the commission, with the concurrence of the division, shall make rules establishing procedures
             2995      under which a licensee may be exempted from a Utah-specific continuing education
             2996      [requirements] requirement:
             2997          (i) for a period not to exceed four years; and
             2998          (ii) upon a finding of reasonable cause.
             2999          (b) An individual who engages in an activity as a mortgage loan originator may not
             3000      under this Subsection (6) be exempted from the [eight hours of] minimum continuing
             3001      education required under [Subsection (3)(b)(iii)] federal licensing regulations for an individual


             3002      who engages in an activity as a mortgage loan originator.
             3003          Section 53. Section 61-2c-205 is amended to read:
             3004           61-2c-205. Term of licensure -- Renewal -- Reporting of changes.
             3005          (1) (a) A license issued under this chapter [is valid for one year.] expires as follows:
             3006          (i) for the calendar year the license is issued:
             3007          (A) if the license is issued on or before October 31, the license expires on December 31
             3008      of the same calendar year; and
             3009          (B) if the license is issued on or after November 1, the license expires on December 31
             3010      of the following calendar year; and
             3011          (ii) after the December 31 on which a license expires under Subsection (1)(a)(i), a
             3012      license expires annually on December 31.
             3013          (b) Notwithstanding Subsection (1)(a), the time period of a license may be extended or
             3014      shortened by as much as one year to maintain or change a renewal cycle established by rule by
             3015      the division.
             3016          (2) To renew a license, no later than the date the license expires, a licensee shall in a
             3017      manner provided by the division by rule:
             3018          [(a) (i) file the renewal form required by the division; and]
             3019          (a) file a renewal statement;
             3020          [(ii)] (b) furnish the information required by Subsection 61-2c-202 (1);
             3021          (c) renew the licensee's registration with the nationwide database, including the
             3022      payment of a fee required by the nationwide database;
             3023          [(b)] (d) pay a fee to the division established by the division in accordance with Section
             3024      63J-1-504 ; and
             3025          [(c)] (e) if the licensee is an individual and the individual's license is in active status at
             3026      the time of application for renewal, submit proof [using forms approved by the division] of
             3027      having completed during the year before application the continuing education required under
             3028      Section 61-2c-204.1 .
             3029          (3) (a) A licensee under this chapter shall notify the division [using the form required
             3030      by the division] in a manner provided by the division by rule within 10 days of the date on
             3031      which there is a change in:
             3032          (i) a name under which the licensee transacts the business of residential mortgage loans


             3033      in this state;
             3034          (ii) (A) if the licensee is an entity, the business location of the licensee; or
             3035          (B) if the licensee is an individual, the home and business addresses of the individual;
             3036          (iii) the principal lending manager of the entity;
             3037          (iv) the entity with which an individual licensee is licensed to conduct the business of
             3038      residential mortgage loans; or
             3039          (v) any other information that is defined as material by rule made by the division.
             3040          (b) Failure to notify the division of a change described in Subsection (3)(a) is separate
             3041      grounds for disciplinary action against a licensee.
             3042          (c) The division may charge a fee established in accordance with Section 63J-1-504 for
             3043      processing a change that a licensee is required to report to the division under Subsection (3)(a).
             3044          (4) A licensee shall notify the division by sending the division a signed statement
             3045      within 10 business days of:
             3046          (a) (i) a conviction of a criminal offense;
             3047          (ii) the entry of a plea in abeyance to a criminal offense; or
             3048          (iii) the potential resolution of a criminal case by:
             3049          (A) a diversion agreement; or
             3050          (B) any other agreement under which a criminal charge is held in suspense for a period
             3051      of time;
             3052          (b) filing a personal bankruptcy or bankruptcy of a business that transacts the business
             3053      of residential mortgage loans;
             3054          (c) the suspension, revocation, surrender, cancellation, or denial of a professional
             3055      license or professional registration of the licensee, whether the license or registration is issued
             3056      by this state or another jurisdiction; or
             3057          (d) the entry of a cease and desist order or a temporary or permanent injunction:
             3058          (i) against the licensee by a court or licensing agency; and
             3059          (ii) based on:
             3060          (A) conduct or a practice involving the business of residential mortgage loans; or
             3061          (B) conduct involving fraud, misrepresentation, or deceit.
             3062          (5) (a) A license under this chapter expires if the licensee does not apply to renew the
             3063      license on or before the expiration date of the license.


             3064          (b) [Within 30 calendar days after the expiration date, a] A licensee whose license has
             3065      expired may apply to reinstate the expired license, in a manner provided by the division by rule
             3066      by:
             3067          (i) requesting reinstatement;
             3068          [(i)] (ii) paying to the division a renewal fee and a late fee determined by the division
             3069      under Section 63J-1-504 ; and
             3070          [(ii) if the licensee is an individual and is applying to reinstate a license to active status,
             3071      providing proof using forms approved by the division of having completed, during the year
             3072      before application, the continuing education required under Section 61-2c-204.1 .]
             3073          [(c) After the 30 calendar days described in Subsection (5)(b) and within six months
             3074      after the expiration date, a licensee whose license has expired may apply to reinstate an expired
             3075      license by:]
             3076          [(i) paying a renewal fee and a late fee determined by the division under Section
             3077      63J-1-504 ;]
             3078          [(ii) if the licensee is an individual and is applying to reinstate a license to active status,
             3079      providing proof using forms approved by the division of having completed, during the year
             3080      before application, the continuing education required under Section 61-2c-204.1 ; and]
             3081          [(iii) in addition to the continuing education described in Subsection (5)(c)(ii),
             3082      providing proof of completing an additional 12 hours of continuing education meeting the
             3083      requirements of Section 61-2c-204.1 .]
             3084          [(d) The division shall issue a license to a licensee whose license expires under this
             3085      Subsection (5) for more than six months as if the licensee is a new applicant filing an
             3086      application for an original license under Section 61-2c-202 .]
             3087          [(e) Notwithstanding Subsection (5)(a), the division may extend the term of a license
             3088      that would expire under Subsection (5)(a) except for the extension if:]
             3089          [(i) the person complies with the requirements of this section to renew the license; and]
             3090          [(ii) at the time of the extension, there is pending under this chapter:]
             3091          [(A) the application for renewal of the license; or]
             3092          [(B) a disciplinary action.]
             3093          [(6) The division may charge a fee established in accordance with Section 63J-1-504
             3094      for processing a change that a licensee is required to report to the division under this section.]


             3095          (iii) reinstating the licensee's registration with the nationwide database, including the
             3096      payment of a fee required by the nationwide database.
             3097          Section 54. Section 61-2c-205.1 is amended to read:
             3098           61-2c-205.1. Transition to use of nationwide database.
             3099          (1) An individual not required to be licensed under this chapter as in effect on
             3100      December 31, 2010, who is required to be licensed under this chapter as in effect on January 1,
             3101      2011, may not engage in the business of residential mortgage loans on or after January 1, 2011
             3102      without holding a license under this chapter.
             3103          (2) An individual who applies for a license under this chapter on or after January 1,
             3104      2011, shall meet the requirements of this chapter as in effect on January 1, 2011.
             3105          (3) (a) This Subsection (3) applies to a licensee who:
             3106          (i) will engage in an activity as a mortgage loan originator on or after January 1, 2011;
             3107      and
             3108          (ii) holds an active license under this chapter on December 31, 2010.
             3109          (b) A licensee shall comply with the requirements of this chapter as in effect on
             3110      January 1, 2011, by no later than January 1, 2011, in order to hold an active license on or after
             3111      January 1, 2011.
             3112          (c) The license of a licensee that fails to comply with this section on or before January
             3113      1, 2011 becomes inactive on January 1, 2011 until:
             3114          (i) the day on which the licensee complies with the requirements of this chapter; or
             3115          (ii) the license expires.
             3116          (4) (a) A license of an individual who will engage in an activity as a mortgage loan
             3117      originator that is inactive on December 31, 2010, terminates as of January 1, 2011 unless that
             3118      licensee provides on or before January 1, 2011, evidence satisfactory to the division that the
             3119      licensee has complied with the requirements for registration under the nationwide database.
             3120          (b) The division may by rule, made in accordance with Title 63G, Chapter 3, Utah
             3121      Administrative Rulemaking Act, [proscribe] prescribe:
             3122          (i) the "requirements for registration under the nationwide database" described in
             3123      Subsection (4)(a);
             3124          (ii) the evidence required by this Subsection (4); and
             3125          (iii) the procedure for submitting the evidence required by this Subsection (4).


             3126          (5) The division may make rules in accordance with Title 63G, Chapter 3, Utah
             3127      Administrative Rulemaking Act, providing a process:
             3128          (a) that is consistent with this section to transition the licensing of individuals engaged
             3129      in the business of residential mortgage loans to the license requirements under this chapter as
             3130      in effect on January 1, 2011; or
             3131          (b) to suspend a requirement for holding a license under this chapter that is related to
             3132      the nationwide database if:
             3133          (i) the suspension is related to changes made to [Secure and Fair Enforcement for
             3134      Mortgage Licensing, 12 U.S.C. Sec. 5105, et seq.,] federal licensing requirements on or after
             3135      January 1, 2009; and
             3136          (ii) the suspension ends on or before December 31, 2011.
             3137          (6) The division may report or provide recommendations to the Legislature regarding
             3138      changes, if any, that could be made to this chapter in response to changes made to the
             3139      nationwide database or under [Secure and Fair Enforcement for Mortgage Licensing, 12 U.S.C.
             3140      Sec. 5101, et seq.] federal licensing requirements, including changes related to grandfathering.
             3141          Section 55. Section 61-2c-206 is amended to read:
             3142           61-2c-206. Principal lending manager licenses.
             3143          (1) To qualify for licensure as a principal lending manager under this chapter, an
             3144      individual shall[, in addition to meeting]:
             3145          (a) meet the standards in Section 61-2c-203 [:];
             3146          [(a) submit an application on a form approved by the division;]
             3147          [(b) pay a fee determined by the division under Section 63J-1-504 ;]
             3148          [(c) submit proof of having successfully completed]
             3149          (b) successfully complete the following education:
             3150          (i) mortgage loan originator prelicensing education as required by federal licensing
             3151      regulations; and
             3152          (ii) 40 hours of Utah-specific prelicensing education for a principal lending manager
             3153      that is approved by the [commission] division under Section 61-2c-204.1 ;
             3154          [(d) submit proof of having successfully completed]
             3155          (c) successfully complete the following examinations:
             3156          (i) the mortgage loan originator licensing examination as approved by the nationwide


             3157      database; and
             3158          (ii) the principal lending manager licensing examination approved by the commission
             3159      under Section 61-2c-204.1 ;
             3160          [(e)] (d) submit proof on a form approved by the division of three years of full-time
             3161      active experience as a mortgage [officer] loan originator licensed in any state in the five years
             3162      preceding the day on which the application is submitted[, or its equivalent as approved by the
             3163      commission; and];
             3164          (e) submit an application in a manner established by the division by rule;
             3165          (f) establish sponsorship with an entity licensed under this chapter;
             3166          [(f)] (g) if the individual is not [licensed under this chapter] registered in the
             3167      nationwide database as a mortgage loan originator at the time of application, submit to the
             3168      criminal background check required by Subsection 61-2c-202 (1)(b)[.]; and
             3169          (h) pay a fee determined by the division under Section 63J-1-504 .
             3170          (2) A principal lending manager may not:
             3171          (a) engage in the business of residential mortgage loans on behalf of more than one
             3172      entity at the same time[.]; or
             3173          (b) be sponsored by more than one entity at the same time.
             3174          Section 56. Section 61-2c-209 is enacted to read:
             3175          61-2c-209. Sponsorship -- Affiliation.
             3176          (1) (a) The division may not license an individual, and an individual licensed under this
             3177      chapter may not conduct the business of residential mortgage loans unless:
             3178          (i) if licensed as a mortgage loan originator, the individual:
             3179          (A) is sponsored by an entity licensed under this chapter; and
             3180          (B) is affiliated with a principal lending manager; or
             3181          (ii) if licensed as a principal lending manager, the individual is sponsored by an entity
             3182      licensed under this chapter.
             3183          (b) The division may not license any entity and an entity licensed under this chapter
             3184      may not conduct the business of residential mortgage loans unless the entity:
             3185          (i) sponsors a principal lending manager;
             3186          (ii) identifies at least one control person for the entity; and
             3187          (iii) provides a list of the mortgage loan originators sponsored by the entity.


             3188          (2) (a) A mortgage loan originator's license automatically becomes inactive the day on
             3189      which:
             3190          (i) the mortgage loan originator is not sponsored by an entity licensed under this
             3191      chapter;
             3192          (ii) the license of the entity with which the mortgage loan originator is sponsored
             3193      becomes inactive or terminates;
             3194          (iii) the mortgage loan originator is not affiliated with a principal lending manager; or
             3195          (iv) the license of the principal lending manager with whom the mortgage loan
             3196      originator is affiliated becomes inactive or terminates.
             3197          (b) A principal lending manager's license automatically becomes inactive the day on
             3198      which:
             3199          (i) the principal lending manager is not sponsored by an entity licensed under this
             3200      chapter; or
             3201          (ii) the license of the entity with which the principal lending manager is sponsored
             3202      becomes inactive or terminates.
             3203          (c) A entity licensed under this chapter automatically becomes inactive the day on
             3204      which the entity's sponsorship with its principal lending manager terminates.
             3205          (3) (a) A person whose license is inactive may not transact the business of residential
             3206      mortgage loans.
             3207          (b) To activate an inactive mortgage loan originator license, an individual shall:
             3208          (i) provide evidence that the individual:
             3209          (A) is sponsored by an entity that holds an active license under this chapter; and
             3210          (B) is affiliated with a principal lending manager who holds an active license under this
             3211      chapter; and
             3212          (ii) pay a fee to the division set in accordance with Section 63J-1-504 .
             3213          (c) To activate an inactive principal lending manager license, an individual shall:
             3214          (i) provide evidence that the individual is sponsored by an entity that holds an active
             3215      license under this chapter; and
             3216          (ii) pay a fee to the division set in accordance with Section 63J-1-504 .
             3217          (d) To activate an inactive license held by an entity, an entity shall:
             3218          (i) provide evidence of the entity's sponsorship of a principal lending manager; and


             3219          (ii) pay a fee to the division set in accordance with Section 63J-1-504 .
             3220          (4) (a) A mortgage loan originator shall conduct the business of residential mortgage
             3221      loans only:
             3222          (i) through the principal lending manager with whom the individual is affiliated; and
             3223          (ii) in the business name under which the principal lending manager is authorized by
             3224      the division to do business.
             3225          (b) An individual licensed under this chapter may not:
             3226          (i) engage in the business of residential mortgage loans on behalf of more than one
             3227      entity at the same time;
             3228          (ii) be sponsored by more than one entity at the same time;
             3229          (iii) transact the business of residential mortgage loans for the following at the same
             3230      time:
             3231          (A) an entity licensed under this chapter; and
             3232          (B) an entity that is exempt from licensure under Section 61-2c-105 ; or
             3233          (iv) if the individual is a mortgage loan originator, receive consideration for transacting
             3234      the business of residential mortgage loans from any person except the principal lending
             3235      manager with whom the mortgage loan originator is affiliated.
             3236          (c) This Subsection (4) does not restrict the number of:
             3237          (i) different lenders a person may use as a funding source for a residential mortgage
             3238      loan; or
             3239          (ii) entities in which an individual may have an ownership interest, regardless of
             3240      whether the entities are:
             3241          (A) licensed under this chapter; or
             3242          (B) exempt under Section 61-2c-105 .
             3243          (5) The division by rule made in accordance with Title 63G, Chapter 3, Utah
             3244      Administrative Rulemaking Act, may make rules that:
             3245          (a) define what constitutes:
             3246          (i) affiliation; or
             3247          (ii) sponsorship; and
             3248          (b) provide procedures by which:
             3249          (i) an individual who is licensed under this chapter may provide evidence of


             3250      sponsorship by an entity that is licensed under this chapter;
             3251          (ii) a mortgage loan originator may provide evidence of affiliation with a principal
             3252      lending manager; and
             3253          (iii) an entity licensed under this chapter may:
             3254          (A) provide evidence of its sponsorship of a principal lending manager;
             3255          (B) identify at least one control person for the entity; and
             3256          (C) provide a list of the one or more mortgage loan originators that the entity sponsors.
             3257          Section 57. Section 61-2c-301 is amended to read:
             3258           61-2c-301. Prohibited conduct -- Violations of the chapter.
             3259          (1) A person transacting the business of residential mortgage loans in this state may
             3260      not:
             3261          (a) give or receive compensation or anything of value in exchange for a referral of
             3262      residential mortgage loan business;
             3263          (b) charge a fee in connection with a residential mortgage loan transaction:
             3264          (i) that is excessive; or
             3265          (ii) if the person does not comply with Section 70D-2-305 ;
             3266          (c) give or receive compensation or anything of value in exchange for a referral of
             3267      settlement or loan closing services related to a residential mortgage loan transaction;
             3268          (d) do any of the following to induce a lender to extend credit as part of a residential
             3269      mortgage loan transaction:
             3270          (i) make a false statement or representation;
             3271          (ii) cause false documents to be generated; or
             3272          (iii) knowingly permit false information to be submitted by any party;
             3273          (e) give or receive compensation or anything of value, or withhold or threaten to
             3274      withhold payment of an appraiser fee, to influence the independent judgment of an appraiser in
             3275      reaching a value conclusion in a residential mortgage loan transaction, except that it is not a
             3276      violation of this section for a licensee to withhold payment because of a bona fide dispute
             3277      regarding a failure of the appraiser to comply with the licensing law or the Uniform Standards
             3278      of Professional Appraisal Practice;
             3279          (f) violate or not comply with:
             3280          (i) this chapter;


             3281          (ii) an order of the commission or division; or
             3282          (iii) a rule made by the division;
             3283          (g) fail to respond within the required time period to:
             3284          (i) a notice or complaint of the division; or
             3285          (ii) a request for information from the division;
             3286          (h) make false representations to the division, including in a licensure statement;
             3287          (i) for a residential mortgage loan transaction beginning on or after January 1, 2004,
             3288      engage in the business of residential mortgage loans with respect to the transaction if the
             3289      person also acts in any of the following capacities with respect to the same residential mortgage
             3290      loan transaction:
             3291          (i) appraiser;
             3292          (ii) escrow agent;
             3293          (iii) real estate agent;
             3294          (iv) general contractor; or
             3295          (v) title insurance [agent] producer;
             3296          (j) order a title insurance report or hold a title insurance policy unless the person
             3297      provides to the title insurer a copy of a valid, current license under this chapter;
             3298          (k) engage in unprofessional conduct as defined by rule;
             3299          (l) engage in an act or omission in transacting the business of residential mortgage
             3300      loans that constitutes dishonesty, fraud, or misrepresentation;
             3301          (m) engage in false or misleading advertising;
             3302          (n) (i) fail to account for [monies] money received in connection with a residential
             3303      mortgage loan;
             3304          (ii) use [monies] money for a different purpose from the purpose for which the [monies
             3305      are] money is received; or
             3306          (iii) except as provided in Subsection (4), retain [monies] money paid for services if
             3307      the services are not performed;
             3308          (o) fail, within 90 calendar days of a request from a borrower who has paid for an
             3309      appraisal, to give a copy of an appraisal ordered and used for a transaction to the borrower;
             3310          (p) engage in an act that is performed to:
             3311          (i) evade this chapter; or


             3312          (ii) assist another person to evade this chapter;
             3313          (q) recommend or encourage default, delinquency, or continuation of an existing
             3314      default or delinquency, by a mortgage applicant on an existing indebtedness before the closing
             3315      of a residential mortgage loan that will refinance all or part of the indebtedness;
             3316          (r) in the case of the principal lending manager of an entity or a branch office of an
             3317      entity, fail to exercise reasonable supervision over the activities of:
             3318          (i) unlicensed staff; and
             3319          (ii) a mortgage [officer] loan originator who is [licensed] affiliated with the principal
             3320      lending manager;
             3321          (s) pay or offer to pay an individual who does not hold a license under this chapter for
             3322      work that requires the individual to hold a license under this chapter;
             3323          (t) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             3324          (i) provide a title insurance product or service without the approval required by Section
             3325      31A-2-405 ; or
             3326          (ii) knowingly provide false or misleading information in the statement required by
             3327      Subsection 31A-2-405 (2); or
             3328          (u) represent to the public that the person can or will perform any act of a mortgage
             3329      loan originator if that person is not licensed under this chapter because the person is exempt
             3330      under Subsection 61-2c-102 (1)(f)(ii)(A), including through:
             3331          (i) advertising;
             3332          (ii) a business card;
             3333          (iii) [stationary] stationery;
             3334          (iv) a brochure;
             3335          (v) a sign;
             3336          (vi) a rate list; or
             3337          (vii) other promotional item.
             3338          (2) Whether or not the crime is related to the business of residential mortgage loans, it
             3339      is a violation of this chapter for a licensee or a person who is a certified education provider to
             3340      do any of the following with respect to a criminal offense that involves moral turpitude:
             3341          (a) be convicted;
             3342          (b) plead guilty or nolo contendere;


             3343          (c) enter a plea in abeyance; or
             3344          (d) be subjected to a criminal disposition similar to the ones described in Subsections
             3345      (2)(a) through (c).
             3346          (3) A principal lending manager does not violate Subsection (1)(r) if:
             3347          (a) in contravention of the principal lending manager's written policies and
             3348      instructions, an affiliated licensee of the principal lending manager violates:
             3349          (i) this chapter; or
             3350          (ii) rules made by the division under this chapter;
             3351          (b) the principal lending manager established and followed reasonable procedures to
             3352      ensure that affiliated licensees receive adequate supervision;
             3353          (c) upon learning of a violation by an affiliated licensee, the principal lending manager
             3354      attempted to prevent or mitigate the damage;
             3355          (d) the principal lending manager did not participate in or ratify the violation by an
             3356      affiliated licensee; and
             3357          (e) the principal lending manager did not attempt to avoid learning of the violation.
             3358          (4) Notwithstanding Subsection (1)(n)(iii), a licensee may, upon compliance with
             3359      Section 70D-2-305 , charge a reasonable cancellation fee for work done originating a mortgage
             3360      if the mortgage is not closed.
             3361          Section 58. Section 61-2c-302 is amended to read:
             3362           61-2c-302. Record requirements.
             3363          (1) For the time period specified in Subsection (2), a licensee shall make or possess any
             3364      record required for that licensee by a rule made by the division.
             3365          (2) A licensee shall maintain in its possession a record described in Subsection (1) for
             3366      four years from the last to occur of the following:
             3367          (a) the final entry on a residential mortgage loan is made by that licensee;
             3368          (b) if the residential mortgage loan is serviced by the licensee:
             3369          (i) the residential mortgage loan is paid in full; or
             3370          (ii) the licensee ceases to service the residential mortgage loan; or
             3371          (c) if the residential mortgage loan is not serviced by the licensee, the residential
             3372      mortgage loan is closed.
             3373          (3) A licensee shall:


             3374          (a) make available to the division for inspection and copying during normal business
             3375      hours all records required to be maintained under this chapter; and
             3376          (b) upon reasonable notice from the division to a licensee, produce all records
             3377      described in Subsection (3)(a) that are related to an investigation being conducted by the
             3378      division at the division office for inspection and copying by the division.
             3379          (4) A licensee who is an entity shall maintain and produce for inspection by the
             3380      division a current list of all individuals whose licenses are [affiliated with] sponsored by the
             3381      entity.
             3382          (5) (a) A licensee who engages in an activity as a mortgage loan originator shall
             3383      maintain [and produce for inspection by the division] a report of condition submitted to the
             3384      nationwide database as required by 12 U.S.C. Sec. 5104(e) for at least four years from the day
             3385      on which the licensee submits the report of condition to the nationwide database.
             3386          (b) Upon request by the division, a mortgage loan originator shall produce a report of
             3387      condition for inspection by the division.
             3388          Section 59. Section 61-2c-401 is amended to read:
             3389           61-2c-401. Investigations.
             3390          (1) The division may investigate or cause to be investigated the actions of:
             3391          (a) (i) a licensee;
             3392          (ii) a person required to be licensed under this chapter; or
             3393          (iii) the following with respect to an entity that is a licensee or an entity required to be
             3394      licensed under this chapter:
             3395          (A) a manager;
             3396          (B) a managing partner;
             3397          (C) a director;
             3398          (D) an executive officer; or
             3399          (E) an individual who performs a function similar to an individual listed in this
             3400      Subsection (1)(a)(iii);
             3401          (b) (i) an applicant for licensure or renewal of licensure under this chapter; or
             3402          (ii) the following with respect to an entity that has applied for a license or renewal of
             3403      licensure under this chapter:
             3404          (A) a manager;


             3405          (B) a managing partner;
             3406          (C) a director;
             3407          (D) an executive officer; or
             3408          (E) an individual who performs a function similar to an individual listed in this
             3409      Subsection (1)(b)(ii); or
             3410          (c) [any individual or entity that] a person who transacts the business of residential
             3411      mortgage loans within this state.
             3412          (2) In conducting investigations, records inspections, and adjudicative proceedings, the
             3413      division may:
             3414          (a) administer an oath or affirmation;
             3415          (b) subpoena witnesses and evidence;
             3416          (c) take evidence;
             3417          (d) require the production of [books, papers, contracts, records, other documents,] a
             3418      record or information relevant to an investigation; and
             3419          (e) serve a subpoena by certified mail.
             3420          (3) A failure to respond to a request by the division in an investigation authorized
             3421      under this chapter is considered as a separate violation of this chapter, including:
             3422          (a) failing to respond to a subpoena;
             3423          (b) withholding evidence; or
             3424          (c) failing to produce [documents or records] a record.
             3425          (4) The division may inspect and copy [all records] a record related to the business of
             3426      residential mortgage loans by a licensee under this chapter, regardless of whether the [records
             3427      are] record is maintained at a business location in Utah, in conducting:
             3428          (a) investigations of complaints; or
             3429          (b) inspections of the [records] record required to be maintained under:
             3430          (i) this chapter; or
             3431          (ii) rules adopted by the division under this chapter.
             3432          (5) (a) If a licensee maintains [the records] a record required by this chapter and the
             3433      rules adopted by the division under this chapter outside Utah, the licensee is responsible for all
             3434      reasonable costs, including reasonable travel costs, incurred by the division in inspecting [those
             3435      records] the record.


             3436          (b) Upon receipt of notification from the division that [records] a record maintained
             3437      outside Utah [are] is to be examined in connection with an investigation or an examination, the
             3438      licensee shall deposit with the division a deposit of $500 to cover the division's expenses in
             3439      connection with the examination of the [records] record.
             3440          (c) If the deposit described in Subsection (5)(b) is insufficient to meet the estimated
             3441      costs and expenses of examination of the [records] record, the licensee shall make an additional
             3442      deposit to cover the estimated costs and expenses of the division.
             3443          (d) (i) [All deposits] A deposit under this Subsection (5) shall be deposited in the
             3444      General Fund as a dedicated credit to be used by the division under Subsection (5)(a).
             3445          (ii) The division, with the concurrence of the executive director, may use [the deposit
             3446      monies deposited in the General Fund under this Subsection (5)(d)] a deposit as a dedicated
             3447      credit for the records inspection costs under Subsection (5)(a).
             3448          (iii) A deposit under this Subsection (5) shall be refunded to the licensee to the extent it
             3449      is not used, together with an itemized statement from the division of all amounts it has used.
             3450          (e) [All deposits] A deposit under this Subsection (5) [shall be] is nonlapsing.
             3451          (6) Failure to deposit with the division a deposit required to cover the costs of
             3452      examination of [records] a record that [are] is maintained outside Utah shall result in automatic
             3453      suspension of a license until the deposit is made.
             3454      (7) (a) H. [ A ] If a person is found to have violated this chapter or a rule made under this
             3454a      chapter, the .H person shall pay the costs incurred by the division to copy a record required
             3455      under this chapter, including the costs incurred to copy an electronic record in a universally
             3456      readable format.
             3457          (b) If a person fails to pay the costs described in Subsection (7)(a) when due, the
             3458      person's license or certification is automatically suspended:
             3459          (i) beginning the day on which the payment of costs is due; and
             3460          (ii) ending the day on which the costs are paid.
             3461          Section 60. Section 61-2c-402 is amended to read:
             3462           61-2c-402. Disciplinary action.
             3463          (1) Subject to the requirements of Section 61-2c-402.1 , the commission, with the
             3464      concurrence of the division, may impose a sanction described in Subsection (2) against a
             3465      person if the person:
             3466          (a) (i) is a licensee or person required to be licensed under this chapter; and


             3467          (ii) violates this chapter; or
             3468          (b) (i) is a certified education provider or person required to be certified to provide
             3469      prelicensing or continuing education under this chapter; and
             3470          (ii) violates this chapter.
             3471          (2) The commission, with the concurrence of the director, may against a person
             3472      described in Subsection (1):
             3473          (a) impose an educational requirement;
             3474          (b) impose a civil penalty against the individual or entity in an amount not to exceed
             3475      the greater of:
             3476          (i) [$2,500] $5,000 for each violation; or
             3477          (ii) the amount equal to any gain or economic benefit derived from each violation;
             3478          (c) deny an application for an original license;
             3479          (d) do any of the following to a license under this chapter:
             3480          (i) suspend;
             3481          (ii) revoke;
             3482          (iii) place on probation;
             3483          (iv) deny renewal;
             3484          (v) deny reinstatement; or
             3485          (vi) in the case of a denial [or revocation] of a license or a suspension that extends to
             3486      the expiration date of a license, set a waiting period for a person to apply for a license under
             3487      this chapter;
             3488          (e) issue a cease and desist order;
             3489          (f) require the reimbursement of the division of costs incurred by the division related to
             3490      the recovery, storage, or destruction of a record that the person disposes of in a manner that
             3491      violates this chapter or a rule made under this chapter;
             3492          (g) modify a sanction described in Subsections (2)(a) through (f) if the commission
             3493      finds that the person complies with court ordered restitution; or
             3494          (h) impose any combination of sanctions described in this Subsection (2).
             3495          (3) (a) If the commission, with the concurrence of the division, issues an order that
             3496      orders a fine or educational requirements as part of a disciplinary action against a person,
             3497      including a stipulation and order, the commission shall state in the order the deadline by which


             3498      the person shall comply with the fine or education requirements.
             3499          (b) If a person fails to comply with a stated deadline:
             3500          (i) the person's license or certificate is automatically suspended:
             3501          (A) beginning the day specified in the order as the deadline for compliance; and
             3502          (B) ending the day on which the person complies in full with the order; and
             3503          (ii) if the person fails to pay a fine required by an order, the division may begin a
             3504      collection process:
             3505          (A) established by the division by rule made in accordance with Title 63G, Chapter 3,
             3506      Utah Administrative Rulemaking Act; and
             3507          (B) subject to Title 63A, Chapter 8, Office of State Debt Collection.
             3508          (4) (a) A person whose license was revoked under this chapter before May 11, 2010,
             3509      may request that the revocation be converted to a suspension under this Subsection (4):
             3510          (i) if the revocation was not as a result of fraud, misrepresentation, or deceit; and
             3511          (ii) by filing a written request with the division.
             3512          (b) Upon receipt of a request to convert a revocation under this Subsection (4), the
             3513      commission, with the concurrence of the director, shall determine whether to convert the
             3514      revocation.
             3515          (c) The commission may delegate to the division the authority to make a decision on
             3516      whether to convert a revocation.
             3517          (d) If the division, acting under Subsection (4)(c), denies a request to convert a
             3518      revocation, the person who requests the conversion may appeal the decision in a hearing
             3519      conducted by the commission:
             3520          (i) after the division denies the request to convert the revocation; and
             3521          (ii) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             3522          (e) The commission may delegate to the division or an administrative law judge the
             3523      authority to conduct a hearing described in Subsection (4)(d).
             3524          Section 61. Section 61-2c-404 is amended to read:
             3525           61-2c-404. Civil actions.
             3526          (1) (a) A person who violates this chapter is liable for an additional penalty, as
             3527      determined by the court, of at least the amount the person received in consequence of a
             3528      violation of this chapter as:


             3529          (i) commission;
             3530          (ii) compensation; or
             3531          (iii) profit.
             3532          (b) A person aggrieved by a violation of this chapter may:
             3533          (i) bring an action for a penalty described in Subsection (1)(a); and
             3534          (ii) use a penalty obtained under Subsection (1)(a) for the person's own use and benefit.
             3535          (2) A person who is not licensed under this chapter at the time of an act or service that
             3536      requires a license under this chapter may not bring an action in court for the recovery of a
             3537      commission, fee, or compensation for that act or service.
             3538          (3) (a) A mortgage [officer] loan originator may not bring an action in the mortgage
             3539      [officer's] loan originator's own name for the recovery of a fee, commission, or compensation
             3540      for transacting the business of residential mortgage loans unless the action is brought against
             3541      the principal lending manager with whom the mortgage [officer] loan originator is licensed at
             3542      the time of the act or service that is the subject of the action.
             3543          (b) An action by an entity for the recovery of a fee, commission, or other compensation
             3544      shall be brought by:
             3545          (i) an entity; or
             3546          (ii) the principal lending manager of an entity on behalf of the entity.
             3547          (4) A principal lending manager who transacts the business of residential mortgage
             3548      loans on the principal lending manager's own behalf may sue in the principal lending manager's
             3549      own name for the recovery of a fee, commission, or compensation for transacting the business
             3550      of residential mortgage loans.
             3551          Section 62. Section 61-2c-501 is amended to read:
             3552           61-2c-501. Fund created.
             3553          (1) [(a)] There is created a restricted special revenue fund known as the "Residential
             3554      Mortgage Loan Education, Research, and Recovery Fund."
             3555          [(b) As used in this part, "fund" means the Residential Mortgage Loan Education,
             3556      Research, and Recovery Fund.]
             3557          (2) The interest earned on the fund shall be deposited into the fund.
             3558          (3) [(a)] At the beginning of each [state] fiscal year, the division shall make available
             3559      $100,000 [shall remain available] in the fund to satisfy final judgments rendered against a


             3560      person licensed under this chapter.
             3561          [(b) For purposes of this part, a "judgment" includes a criminal restitution judgment.]
             3562          Section 63. Section 61-2c-501.5 is enacted to read:
             3563          61-2c-501.5. Definitions.
             3564          As used in this part:
             3565          (1) "Civil judgment" means a judgment in a civil action that:
             3566          (a) is awarded in an action brought against a real estate licensee on the basis of fraud,
             3567      misrepresentation, or deceit in a residential mortgage loan transaction; and
             3568          (b) awards actual damages.
             3569          (2) "Criminal restitution judgment" means a judgment that, in accordance with the
             3570      Utah Code of Criminal Procedure, orders criminal restitution to a person and against a real
             3571      estate licensee for a criminal offense involving fraud, misrepresentation, or deceit in a
             3572      residential mortgage loan transaction.
             3573          (3) "Final judgment" means one of the following judgments upon termination of the
             3574      proceedings related to the judgment, including appeals:
             3575          (a) a civil judgment; or
             3576          (b) a criminal restitution judgment.
             3577          (4) "Fund" means the Residential Mortgage Loan Education, Research, and Recovery
             3578      Fund created in Section 61-2c-501 .
             3579          Section 64. Section 61-2c-502 is amended to read:
             3580           61-2c-502. Additional license fee.
             3581          (1) An individual who applies for or renews a license shall pay, in addition to [the
             3582      application or renewal fee] any other fee required under this chapter, a reasonable annual fee:
             3583          (a) determined by the division with the concurrence of the commission; and
             3584          (b) not to exceed $18.
             3585          (2) (a) An entity that applies for or renews an entity license shall pay, in addition to
             3586      [the application or renewal fee] any other fee required under this chapter, a reasonable annual
             3587      fee:
             3588          [(a)] (i) determined by the division with the concurrence of the commission; and
             3589          [(b)] (ii) not to exceed $25.
             3590          (b) This Subsection (2) applies:


             3591          (i) notwithstanding that an entity is operating under an assumed name registered with
             3592      the division as required by Subsection 61-2c-201 (9); and
             3593          (ii) to each branch office of an entity that is licensed under this chapter.
             3594          (3) Notwithstanding Section 13-1-2 , the following shall be paid into the fund to be
             3595      used as provided in this part:
             3596          (a) a fee provided in this section;
             3597          (b) a fee for certifying:
             3598          (i) a school as a certified education provider;
             3599          (ii) a prelicensing or continuing education course; or
             3600          (iii) a prelicensing or continuing education provider as an instructor; and
             3601          (c) a civil penalty imposed under this chapter.
             3602          (4) If the balance in the fund that is available to satisfy a judgment against a licensee
             3603      decreases to less than $100,000, the division may make an additional assessment to a licensee
             3604      to maintain the balance available at $100,000 to satisfy judgments.
             3605          Section 65. Section 61-2c-503 is amended to read:
             3606           61-2c-503. Notice to division -- Judgment against mortgage licensee -- Fraud,
             3607      misrepresentation, or deceit -- Verified petition for order directing payment from fund --
             3608      Limitations and procedure.
             3609          (1) [(a) Subject to Subsection (6), a] A person may bring a claim against the fund if
             3610      [the person sends a signed notification to the division at the time the person files an action: (i)
             3611      against a licensee; and (ii)]:
             3612          (a) the person obtains a final judgment;
             3613          (b) the person complies with the requirements under this part;
             3614          (c) the person is not complicit in the fraud, misrepresentation, or deceit that is the basis
             3615      of the claim; and
             3616          (d) the final judgment that is the basis for the claim:
             3617          (i) has not been discharged in bankruptcy; and
             3618          (ii) when a bankruptcy proceeding is open or commenced during the pendency of the
             3619      claim, the person obtains an order from the bankruptcy court declaring the final judgment and
             3620      related debt to be nondischargeable.
             3621          (2) (a) A person may not bring a claim against the fund for money owed under a civil


             3622      judgment unless, within 10 business days of the day on which the person brings the civil action
             3623      that results in the civil judgment, the person sends to the division a signed notification alleging
             3624      fraud, misrepresentation, or deceit.
             3625          (b) Within 30 calendar days [of receipt of the notice described in Subsection (1)(a),] of
             3626      the day on which the division receives a notice under Subsection (1), the division may
             3627      intervene in the action.
             3628          [(c) If a person making a claim against the fund obtains a final judgment in a court of
             3629      competent jurisdiction in Utah against a licensee based on fraud, misrepresentation, or deceit in
             3630      a residential mortgage loan transaction, the person making the claim may, upon termination of
             3631      all proceedings including appeals,]
             3632          (3) (a) After obtaining a final judgment, to file a claim against the fund, a person shall:
             3633          (i) file a verified petition in the court where the final judgment [was] is entered [for]
             3634      seeking an order directing payment from the fund [for] of an amount equal to the uncollected
             3635      actual damages [included in the judgment.] owed under the final judgment that are unpaid;
             3636          (ii) serve a copy of the verified petition described in Subsection (3)(a)(i) on the
             3637      division; and
             3638          (iii) file a copy of the affidavit of service of the verified petition with the court.
             3639          [(d)] (b) A recovery from the fund may not include:
             3640          (i) punitive damages[,];
             3641          (ii) attorney fees;
             3642          (iii) interest[,]; or
             3643          (iv) court costs.
             3644          [(e)] (c) Regardless of the number of claimants or number of loans involved in a
             3645      transaction, the liability of the fund may not exceed:
             3646          (i) $15,000 for a single transaction;
             3647          (ii) $45,000 for an individual licensee; or
             3648          (iii) $45,000 for an entity.
             3649          [(2) A person making a claim against the fund shall:]
             3650          [(a) serve a copy of the petition on the division; and]
             3651          [(b) file a copy of the affidavit of the service of the petition described in Subsection
             3652      (2)(a) with the court.]


             3653          [(3) (a) The] (4) A court shall conduct a hearing on [the] a petition [within 30 calendar
             3654      days after service] filed under Subsection (3) as scheduled by the court.
             3655          [(b) The petitioner shall recover from the fund only if the petitioner shows:]
             3656          [(i) that the petitioner is not:]
             3657          (5) Subject to Subsection (6), a court may order payment from the fund under this
             3658      section only if the person who files the petition shows that the person:
             3659          (a) is not:
             3660          [(A)] (i) in the case of a civil judgment, the spouse of the judgment debtor; [or]
             3661          (ii) in the case of a criminal judgment, the spouse of the criminal defendant; or
             3662          [(B) the] (iii) a personal representative of [the spouse of the judgment debtor] an
             3663      individual described in Subsection (5)(a)(i) or (ii);
             3664          [(ii) that the petitioner] (b) has complied with this chapter;
             3665          [(iii) that the petitioner has obtained]
             3666          (c) is owed damages under a final judgment that:
             3667          (i) is issued by the court in the manner prescribed under this section[, indicating]; and
             3668          (ii) indicates the amount of the final judgment awarded;
             3669          [(iv) that the petitioner]
             3670          (d) has proved the amount still owing on the final judgment [at the date of] on the day
             3671      on which the petition is filed;
             3672          [(v) (A) that:]
             3673          [(I) the petitioner]
             3674          (e) (i) (A) has a writ of execution issued upon the final judgment; and
             3675          [(II)] (B) has received a return made by the officer executing the writ [has made a
             3676      return] showing that no property subject to execution in satisfaction of the final judgment could
             3677      be found; [and] or
             3678          [(B)] (ii) if execution is levied against the property of the judgment debtor[, that] or
             3679      criminal defendant:
             3680          [(I) the amount realized was insufficient]
             3681          (A) has not realized an amount sufficient to satisfy the final judgment; and
             3682          [(II)] (B) is owed a balance [remains] on the final judgment after application of the
             3683      amount realized; [and]


             3684          [(vi) that the petitioner has:]
             3685          [(A)] (f) has made reasonable searches and inquiries to ascertain whether the judgment
             3686      debtor or criminal defendant has any interest in property, real or personal, that may satisfy the
             3687      final judgment; and
             3688          [(B)] (g) has exercised reasonable diligence to secure payment of the final judgment
             3689      from the assets of the judgment debtor or criminal defendant.
             3690          [(4) If the petitioner] (6) If a person satisfies the court that it is not practicable for the
             3691      [petitioner] person to comply with one or more of the requirements in Subsections [(3)(b)(v)
             3692      and (3)(b)(vi)] (5)(e) through (g), the court may waive those requirements.
             3693          [(5) (a) A judgment that is the basis for a claim against the fund may not have been
             3694      discharged in bankruptcy.]
             3695          [(b) In the case of a bankruptcy proceeding that is open or that is commenced during
             3696      the pendency of the claim, the claimant shall, prior to obtaining a claim against the fund, obtain
             3697      an order from the bankruptcy court declaring the judgment and debt to be nondischargeable.]
             3698          [(6) A person may not bring a claim against the fund if the person is substantially
             3699      complicit in the fraud, misrepresentation, or deceit that is the basis of the claim.]
             3700          Section 66. Section 61-2c-505 is amended to read:
             3701           61-2c-505. Court determination and order.
             3702          If the court determines that a claim should be levied against the portion of the fund
             3703      allocated to carry out [the provisions of] this chapter, the court shall enter an order requiring
             3704      the division to pay from the fund the portion of [the petitioner's] a final judgment that is
             3705      payable from the fund under Section 61-2c-503 .
             3706          Section 67. Section 61-2c-507 is amended to read:
             3707           61-2c-507. Division subrogated -- Authority to revoke license.
             3708          (1) If the division pays a [judgment creditor] a person from the fund in accordance with
             3709      this part:
             3710          (a) the division is subrogated to the rights of [the judgment creditor] that person for the
             3711      amounts paid out of the fund; and
             3712          (b) any amount and interest recovered by the division shall be deposited in the fund.
             3713          (2) (a) Subject to Subsection (2)(b), the license of a licensee for whom payment from
             3714      the fund is made under this part is automatically revoked as of the earlier of the day on which:


             3715          (i) the division is ordered by a court to pay from the fund; or
             3716          (ii) the division pays from the fund.
             3717          (b) (i) A person whose license is revoked under Subsection (2)(a) may appeal the
             3718      revocation in a hearing conducted by the commission:
             3719          (A) after the revocation; and
             3720          (B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             3721          (ii) The commission may delegate:
             3722          (A) to the division or an administrative law judge the authority to conduct a hearing
             3723      described in Subsection (2)(b)(i); or
             3724          (B) to the division the authority to make a decision on whether relief from a revocation
             3725      should be granted.
             3726          (3) Unless the revocation is not upheld after a hearing described in Subsection (2)(b), a
             3727      licensee whose license is revoked pursuant to Subsection (2) may not apply for a new license
             3728      until the licensee pays into the fund:
             3729          (a) the amount paid out of the fund on behalf of the licensee; and
             3730          (b) interest at a rate determined by the division with the concurrence of the
             3731      commission.
             3732          Section 68. Section 61-2f-101 is enacted to read:
             3733     
CHAPTER 2f. REAL ESTATE LICENSING AND PRACTICES ACT

             3734     
Part 1. General Provisions

             3735          61-2f-101. Title.
             3736          This chapter is known as the "Real Estate Licensing and Practices Act."
             3737          Section 69. Section 61-2f-102 , which is renumbered from Section 61-2-2 is
             3738      renumbered and amended to read:
             3739           [61-2-2].     61-2f-102. Definitions.
             3740          As used in this chapter:
             3741          (1) "Associate [real estate broker" and "associate] broker" means [any person] an
             3742      individual who is:
             3743          (a) employed or engaged as an independent contractor by or on behalf of a [licensed]
             3744      principal [real estate] broker to perform [any] an act set out in Subsection [(12)] (14) for
             3745      valuable consideration[, who has qualified]; and


             3746          (b) licensed under this chapter as [a principal real estate] an associate broker.
             3747          (2) "Branch office" means a principal broker's real estate brokerage office [other than]
             3748      that is not the principal broker's main office.
             3749          (3) "Commission" means the Real Estate Commission established under this chapter.
             3750          (4) "Concurrence" means the entities given a concurring role must jointly agree for
             3751      action to be taken.
             3752          (5) "Condominium[" or "condominium] unit" is as defined in Section 57-8-3 .
             3753          (6) "Condominium homeowners' association" means [all of] the condominium unit
             3754      owners acting as a group in accordance with declarations and bylaws.
             3755          (7) (a) "Condominium hotel" means one or more condominium units that are operated
             3756      as a hotel.
             3757          (b) "Condominium hotel" does not mean a hotel consisting of condominium units, all
             3758      of which are owned by a single entity.
             3759          (8) "Director" means the director of the Division of Real Estate.
             3760          (9) "Division" means the Division of Real Estate.
             3761          (10) "Entity" means:
             3762          (a) a corporation;
             3763          (b) a partnership;
             3764          (c) a limited liability company;
             3765          (d) a company;
             3766          (e) an association;
             3767          (f) a joint venture;
             3768          (g) a business trust;
             3769          (h) a trust; or
             3770          (i) any organization similar to an entity described in Subsections (10)(a) through (h).
             3771          [(10)] (11) "Executive director" means the director of the Department of Commerce.
             3772          [(11)] (12) "Main office" means the address which a principal broker designates with
             3773      the division as the principal broker's primary brokerage office.
             3774          (13) "Person" means an individual or entity.
             3775          [(12)] (14) "Principal [real estate broker" and "principal] broker" means [any person]
             3776      an individual who:


             3777          (a) (i) [who] sells or lists real estate for sale[,] with the expectation of receiving
             3778      valuable consideration;
             3779          (ii) buys, exchanges, or auctions real estate, options on real estate, or improvements on
             3780      real estate with the expectation of receiving valuable consideration; or
             3781          [(ii)] (iii) who advertises, offers, attempts, or otherwise holds [himself] the individual
             3782      out to be engaged in the business described in Subsection [(12)(a)(i)] (14)(a)(i) or (ii);
             3783          (b) is employed by or on behalf of the owner of real estate or by a prospective
             3784      purchaser of real estate [who performs any of the acts] and performs an act described in
             3785      Subsection [(12)] (14)(a), whether the [person's] individual's compensation is at a stated salary,
             3786      a commission basis, upon a salary and commission basis, or otherwise;
             3787          (c) [who,] (i) with the expectation of receiving valuable consideration, manages
             3788      property owned by another person; or [who]
             3789          (ii) advertises or otherwise holds [himself] the individual out to be engaged in property
             3790      management;
             3791          (d) [who,] with the expectation of receiving valuable consideration, assists or directs in
             3792      the procurement of prospects for or the negotiation of [the transactions] a transaction listed in
             3793      Subsections [(12)] (14)(a) and (c); [and]
             3794          (e) except for [mortgage lenders, title insurance agents, and their employees, who] a
             3795      mortgage lender, title insurance producer, or an employee of a mortgage lender or title
             3796      insurance producer, assists or directs in the closing of [any] a real estate transaction with the
             3797      expectation of receiving valuable consideration[.]; and
             3798          (f) is licensed as a principal broker under this chapter.
             3799          [(13)] (15) (a) "Property management" means engaging in, with the expectation of
             3800      receiving valuable consideration, the management of [property] real estate owned by another
             3801      person or advertising or otherwise claiming to be engaged in property management by:
             3802          (i) advertising for, arranging, negotiating, offering, or otherwise attempting or
             3803      participating in a transaction calculated to secure the rental or leasing of real estate;
             3804          (ii) collecting, agreeing, offering, or otherwise attempting to collect rent for the real
             3805      estate and accounting for and disbursing the money collected; or
             3806          (iii) authorizing expenditures for repairs to the real estate.
             3807          (b) "Property management" does not include:


             3808          (i) hotel or motel management;
             3809          (ii) rental of tourist accommodations, including hotels, motels, tourist homes,
             3810      condominiums, condominium hotels, mobile home park accommodations, campgrounds, or
             3811      similar public accommodations for [any] a period of less than 30 consecutive days, and the
             3812      management activities associated with these rentals; or
             3813          (iii) the leasing or management of surface or subsurface minerals or oil and gas
             3814      interests, if the leasing or management is separate from a sale or lease of the surface estate.
             3815          [(14)] (16) "Real estate" includes leaseholds and business opportunities involving real
             3816      property.
             3817          [(15) "Real estate sales agent" and "sales agent" mean any person affiliated with a
             3818      licensed principal real estate broker, either as an independent contractor or an employee as
             3819      provided in Section 61-2-25 , to perform for valuable consideration any act set out in
             3820      Subsection (12).]
             3821          [(16)] (17) (a) "Regular salaried employee" means an individual who performs a
             3822      service for wages or other remuneration, whose employer withholds federal employment taxes
             3823      under a contract of hire, written or oral, express or implied.
             3824          (b) "Regular salaried employee" does not include [a person] an individual who
             3825      performs services on a project-by-project basis or on a commission basis.
             3826          [(17)] (18) "Reinstatement" means restoring a license that has expired or has been
             3827      suspended.
             3828          [(18)] (19) "Reissuance" means the process by which a licensee may obtain a license
             3829      following revocation of the license.
             3830          [(19)] (20) "Renewal" means extending a license for an additional licensing period on
             3831      or before the date the license expires.
             3832          (21) "Sales agent" means an individual who is:
             3833          (a) affiliated with a principal broker, either as an independent contractor or an
             3834      employee as provided in Section 61-2f-303 , to perform for valuable consideration an act
             3835      described in Subsection (14); and
             3836          (b) licensed under this chapter as a sales agent.
             3837          [(20)] (22) (a) "Undivided fractionalized long-term estate" means an ownership interest
             3838      in real property by two or more persons that is [a]:


             3839          (i) a tenancy in common; or
             3840          (ii) any other legal form of undivided estate in real property including:
             3841          (A) a fee estate;
             3842          (B) a life estate; or
             3843          (C) other long-term estate.
             3844          (b) "Undivided fractionalized long-term estate" does not include a joint tenancy.
             3845          Section 70. Section 61-2f-103 , which is renumbered from Section 61-2-5.5 is
             3846      renumbered and amended to read:
             3847           [61-2-5.5].     61-2f-103. Real Estate Commission.
             3848          (1) There is created within the division a Real Estate Commission. The commission
             3849      shall:
             3850          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             3851      make rules for the administration of this chapter that are not inconsistent with this chapter,
             3852      including:
             3853          (i) licensing of:
             3854          (A) a principal [brokers;] broker;
             3855          (B) associate brokers; and
             3856          (C) a sales [agents] agent;
             3857          [(D) real estate companies; and]
             3858          (ii) registration of:
             3859          (A) an entity; and
             3860          [(E)] (B) a branch [offices] office;
             3861          [(ii)] (iii) prelicensing and postlicensing education curricula;
             3862          [(iii)] (iv) examination procedures;
             3863          [(iv)] (v) the certification and conduct of:
             3864          (A) a real estate [schools] school;
             3865          (B) a course [providers; and] provider; or
             3866          [(C) instructors;]
             3867          (C) an instructor;
             3868          [(v)] (vi) proper handling of [funds] money received by [real estate licensees] a
             3869      licensee under this chapter;


             3870          [(vi)] (vii) brokerage office procedures and recordkeeping requirements;
             3871          [(vii)] (viii) property management;
             3872          [(viii)] (ix) standards of conduct for [real estate licensees] a licensee under this chapter;
             3873          [(ix) rules] (x) a rule made under Section [ 61-2-26 ] 61-2f-307 regarding an undivided
             3874      fractionalized long-term estate; and
             3875          [(x)] (xi) if the commission determines necessary, [rules] a rule as provided in
             3876      Subsection [ 61-2-20 ] 61-2f-306 (3) regarding a legal [forms] form;
             3877          (b) establish, with the concurrence of the division, [all fees as] a fee provided for in
             3878      this chapter [and Title 61, Chapter 2a, Real Estate Recovery Fund Act], except a fee imposed
             3879      under Part 5, Real Estate Education, Research, and Recovery Fund Act;
             3880          (c) conduct [all] an administrative [hearings] hearing not delegated by the commission
             3881      to an administrative law judge or the division relating to the:
             3882          (i) licensing of [any] an applicant;
             3883          (ii) conduct of [any] a licensee;
             3884          (iii) the certification or conduct of [any] a real estate school, course provider, or
             3885      instructor regulated under this chapter; or
             3886          (iv) violation of this chapter by any person;
             3887          (d) with the concurrence of the director, impose [sanctions] a sanction as provided in
             3888      Section [ 61-2-12 ] 61-2f-404 ;
             3889          (e) advise the director on the administration and enforcement of [any matters] a matter
             3890      affecting the division and the real estate sales and property management industries;
             3891          (f) advise the director on matters affecting the division budget;
             3892          (g) advise and assist the director in conducting real estate seminars; and
             3893          (h) perform other duties as provided by[: (i)] this chapter[; and].
             3894          [(ii) Title 61, Chapter 2a, Real Estate Recovery Fund Act.]
             3895          (2) (a) The commission shall be comprised of five members appointed by the governor
             3896      and approved by the Senate.
             3897          (b) Four of the commission members shall:
             3898          (i) have at least five years' experience in the real estate business; and
             3899          (ii) hold an active principal broker, associate broker, or sales agent license.
             3900          (c) One commission member shall be a member of the general public.


             3901          (d) [No more than one] The governor may not appoint a commission member
             3902      described in Subsection (2)(b) [shall] who, at the time of appointment [reside in any given],
             3903      resides in the same county in the state as another commission member.
             3904          (e) At least one commission member described in Subsection (2)(b) shall at the time of
             3905      an appointment reside in a county that is not a county of the first or second class.
             3906          (3) (a) Except as required by Subsection (3)(b), as terms of current commission
             3907      members expire, the governor shall appoint each new member or reappointed member to a
             3908      four-year term ending June 30.
             3909          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             3910      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             3911      commission members are staggered so that approximately half of the commission is appointed
             3912      every two years.
             3913          (c) Upon the expiration of the term of a member of the commission, the member of the
             3914      commission shall continue to hold office until a successor is appointed and qualified.
             3915          (d) A commission member may not serve more than two consecutive terms.
             3916          (e) Members of the commission shall annually select one member to serve as chair.
             3917          (4) When a vacancy occurs in the membership for any reason, [the replacement shall be
             3918      appointed] the governor, with the consent of the Senate shall appoint a replacement for the
             3919      unexpired term.
             3920          (5) (a) A member may not receive compensation or benefits for the member's services,
             3921      but may receive per diem and expenses incurred in the performance of the member's official
             3922      duties at the rates established by the Division of Finance under Sections 63A-3-106 and
             3923      63A-3-107 .
             3924          (b) A member may decline to receive per diem and expenses for the member's service.
             3925          (6) (a) The commission shall meet at least monthly.
             3926          (b) The director may call additional meetings:
             3927          (i) at the director's discretion;
             3928          (ii) upon the request of the chair; or
             3929          (iii) upon the written request of three or more commission members.
             3930          (7) Three members of the commission constitute a quorum for the transaction of
             3931      business.


             3932          Section 71. Section 61-2f-104 , which is renumbered from Section 61-2-14 is
             3933      renumbered and amended to read:
             3934           [61-2-14].     61-2f-104. List of licensees, registrants, and certificate holders to be
             3935      available.
             3936          [The] (1) Upon request, the division shall make available [at reasonable cost] a list of
             3937      the names and addresses of [all] the persons licensed, registered, or certified by it under this
             3938      chapter either directly or through a third party.
             3939          (2) A person who requests a list under Subsection (1) shall pay the costs incurred by
             3940      the division to make the list available.
             3941          Section 72. Section 61-2f-105 is enacted to read:
             3942          61-2f-105. Fees.
             3943          (1) In addition to when expressly authorized in another provision of this chapter, the
             3944      division may charge and collect reasonable fees determined by the commission with the
             3945      concurrence of the division under Section 63J-1-504 to cover the costs for:
             3946          (a) issuing a new or duplicate license;
             3947          (b) registering an entity or branch office;
             3948          (c) certifying a real estate school, course, or instructor;
             3949          (d) providing a history of a license, registration, or certification; and
             3950          (e) producing a certified copy of an official document, order, or other paper or
             3951      transcript; and
             3952          (f) other duties required by this chapter.
             3953          (2) Notwithstanding Section 13-1-2 , a fee collected under Subsection (1)(c) shall be
             3954      deposited in the Real Estate Education, Research, and Recovery Fund.
             3955          (3) If a person pays a fee or costs to the division with a negotiable instrument and the
             3956      negotiable instrument is not honored for payment:
             3957          (a) the transaction for which the payment is submitted is voidable by the division;
             3958          (b) the division may reverse the transaction if payment of the applicable fee or costs is
             3959      not received in full; and
             3960          (c) the person's license, certification, or registration is automatically suspended:
             3961          (i) beginning the day on which the payment is due; and
             3962          (ii) ending the day on which payment is made in full.


             3963          (4) (a) A fee under this chapter is in lieu of all other license fees or assessments that
             3964      might otherwise be imposed or charged by the state or any of its political subdivisions upon, or
             3965      as a condition of, the privilege of conducting the business regulated by this chapter, except that
             3966      a political subdivision within the state may charge a business license fee on a principal broker
             3967      if the principal broker maintains a place of business within the jurisdiction of the political
             3968      subdivision.
             3969          (b) Unless otherwise exempt, a licensee under this chapter is subject to the taxes
             3970      imposed under Title 59, Revenue and Taxation.
             3971          Section 73. Section 61-2f-106 , which is renumbered from Section 61-2-22 is
             3972      renumbered and amended to read:
             3973           [61-2-22].     61-2f-106. Severability.
             3974          If [any] a provision of this chapter, or the application of [any] a provision to any person
             3975      or circumstance, is held invalid, the remainder of this chapter [shall not be affected thereby]
             3976      shall be given effect without the invalid provision or application. The provisions of this
             3977      provision are severable.
             3978          Section 74. Section 61-2f-201 , which is renumbered from Section 61-2-1 is
             3979      renumbered and amended to read:
             3980     
Part 2. Licensure, Registration, and Certification

             3981           [61-2-1].     61-2f-201. License required.
             3982          (1) [It is unlawful for any person to] Unless a person is licensed under this chapter, it is
             3983      unlawful for the person to do the following with respect to real estate located in this state:
             3984          (a) engage in the business[,] of a principal broker, associate broker, or sales agent;
             3985          (b) act in the capacity of[,] a principal broker, associate broker, or sales agent;
             3986          (c) advertise[,] or assume to act as a principal [real estate] broker, associate [real
             3987      estate] broker, or a [real estate] sales agent [within this state without a license obtained under
             3988      this chapter].
             3989          [(2) It is unlawful for any person outside the state to engage in the business, act in the
             3990      capacity of, advertise, or assume to act as a principal real estate broker, associate real estate
             3991      broker, or a real estate sales agent with respect to real estate located within the state without a
             3992      license obtained under this chapter.]
             3993          (2) Except as provided in Section 61-2f-202 , an individual is required to be licensed as


             3994      a principal broker, associate broker, or a sales agent if the individual performs, offers to
             3995      perform, or attempts to perform one act for valuable consideration of:
             3996          (a) buying, selling, leasing, managing, or exchanging real estate for another person; or
             3997          (b) offering for another person to buy, sell, lease, manage, or exchange real estate.
             3998          Section 75. Section 61-2f-202 , which is renumbered from Section 61-2-3 is
             3999      renumbered and amended to read:
             4000           [61-2-3].     61-2f-202. Exempt persons and transactions.
             4001          (1) (a) Except as provided in Subsection (1)(b), a license under this chapter is not
             4002      required for:
             4003          (i) [a person] an individual who as owner or lessor performs [the acts] an act described
             4004      in Subsection [ 61-2-2 (12)] 61-2f-102 (14) with reference to [property] real estate owned or
             4005      leased by that [person] individual;
             4006          (ii) a regular salaried employee of the owner or lessor of real estate who, with reference
             4007      to nonresidential real estate owned or leased by the employer, performs [the acts enumerated in
             4008      Subsections 61-2-2 (12)(a) and (b)] an act described in Subsection 61-2f-102 (14)(a) or (b);
             4009          (iii) a regular salaried employee of the owner of real estate who performs property
             4010      management services with reference to real estate owned by the employer, except that the
             4011      employee may only manage [property] real estate for one employer;
             4012          (iv) [a person] an individual who performs property management services for the
             4013      apartments at which that [person] individual resides in exchange for free or reduced rent on
             4014      that [person's] individual's apartment;
             4015          (v) a regular salaried employee of a condominium homeowners' association who
             4016      manages real [property] estate subject to the declaration of condominium that established the
             4017      condominium homeowners' association, except that the employee may only manage [property]
             4018      real estate for one condominium homeowners' association; and
             4019          (vi) a regular salaried employee of a licensed property management company who
             4020      performs support services, as prescribed by rule, for the property management company.
             4021          (b) Subsection (1)(a) does not exempt from licensing:
             4022          (i) an employee engaged in the sale of [properties] real estate regulated under:
             4023          (A) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act; and
             4024          (B) Title 57, Chapter 19, Timeshare and Camp Resort Act;


             4025          (ii) an employee engaged in the sale of cooperative interests regulated under Title 57,
             4026      Chapter 23, Real Estate Cooperative Marketing Act; or
             4027          (iii) [a person] an individual whose interest as an owner or lessor is obtained by that
             4028      [person] individual or transferred to that [person] individual for the purpose of evading the
             4029      application of this chapter, and not for [any other] another legitimate business reason.
             4030          (2) A license under this chapter is not required for:
             4031          (a) an isolated transaction by [a person] an individual holding a duly executed power of
             4032      attorney from [the] an owner;
             4033          (b) services rendered by an attorney in performing the attorney's duties as an attorney;
             4034          (c) a receiver, trustee in bankruptcy, administrator, executor, or [a person] an
             4035      individual acting under order of [any] a court;
             4036          (d) a trustee or employee of a trustee under a deed of trust or a will;
             4037          (e) a public utility, officer of a public utility, or regular salaried employee of a public
             4038      utility, unless performance of [any of the acts set out] an act described in Subsection
             4039      [ 61-2-2 (12)] 61-2f-102 (14) is in connection with the sale, purchase, lease, or other disposition
             4040      of real estate or investment in real estate unrelated to the principal business activity of that
             4041      public utility;
             4042          (f) a regular salaried employee or authorized agent working under the oversight of the
             4043      Department of Transportation when performing an act on behalf of the Department of
             4044      Transportation in connection with one or more of the following:
             4045          (i) the acquisition of real [property] estate pursuant to Section 72-5-103 ;
             4046          (ii) the disposal of real [property] estate pursuant to Section 72-5-111 ;
             4047          (iii) services that constitute property management; or
             4048          (iv) the leasing of real [property;] estate; and
             4049          (g) a regular salaried employee of a county, city, or town when performing an act on
             4050      behalf of the county, city, or town:
             4051          (i) in accordance with:
             4052          (A) if a regular salaried employee of a city or town:
             4053          (I) Title 10, Utah Municipal Code; or
             4054          (II) Title 11, Cities, Counties, and Local Taxing Units; and
             4055          (B) if a regular salaried employee of a county:


             4056          (I) Title 11, Cities, Counties, and Local Taxing Units; and
             4057          (II) Title 17, Counties; and
             4058          (ii) in connection with one or more of the following:
             4059          (A) the acquisition of real [property] estate, including by eminent domain;
             4060          (B) the disposal of real [property] estate;
             4061          (C) services that constitute property management; or
             4062          (D) the leasing of real [property] estate.
             4063          (3) A license under this chapter is not required for [a person] an individual registered to
             4064      act as a broker-dealer, agent, or investment adviser under the Utah and federal securities laws
             4065      in the sale or the offer for sale of real estate if:
             4066          (a) (i) the real estate is a necessary element of a "security" as that term is defined by the
             4067      Securities Act of 1933 and the Securities Exchange Act of 1934; and
             4068          (ii) the security is registered for sale in accordance with:
             4069          (A) [pursuant to] the Securities Act of 1933; or
             4070          (B) [by] Title 61, Chapter 1, Utah Uniform Securities Act; or
             4071          (b) (i) it is a transaction in a security for which a Form D, described in 17 C.F.R. Sec.
             4072      239.500, has been filed with the Securities and Exchange Commission pursuant to Regulation
             4073      D, Rule 506, 17 C.F.R. Sec. 230.506; and
             4074          (ii) the selling agent and the purchaser are not residents of this state.
             4075          Section 76. Section 61-2f-203 , which is renumbered from Section 61-2-6 is
             4076      renumbered and amended to read:
             4077           [61-2-6].     61-2f-203. Licensing requirements.
             4078          (1) (a) Except as provided in Subsection (5), the commission shall determine the
             4079      qualifications and requirements of an applicant for:
             4080          (i) a principal broker license;
             4081          (ii) an associate broker license; or
             4082          (iii) a sales agent license.
             4083          (b) The division, with the concurrence of the commission, shall require and pass upon
             4084      proof necessary to determine the honesty, integrity, truthfulness, reputation, and competency of
             4085      each applicant for an initial license or for renewal of an existing license.
             4086          (c) (i) The division, with the concurrence of the commission, shall require an applicant


             4087      for:
             4088          (A) a sales agent license to complete an approved educational program consisting of
             4089      the number of hours designated by rule made by the commission with the concurrence of the
             4090      division, except that the rule may not require less than 120 hours; and
             4091          (B) an associate broker or a principal broker license to complete an approved
             4092      educational program consisting of the number of hours designated by rule made by the
             4093      commission with the concurrence of the division, except that the rule may not require less than
             4094      120 hours.
             4095          (ii) An hour required by this section means 50 minutes of instruction in each 60
             4096      minutes.
             4097          (iii) The maximum number of program hours available to an individual is [10] eight
             4098      hours per day.
             4099          (d) The division, with the concurrence of the commission, shall require the applicant to
             4100      pass an examination approved by the commission covering:
             4101          (i) the fundamentals of:
             4102          (A) the English language;
             4103          (B) arithmetic;
             4104          (C) bookkeeping; and
             4105          (D) real estate principles and practices;
             4106          (ii) the provisions of this chapter;
             4107          (iii) the rules established by the commission; and
             4108          (iv) any other aspect of Utah real estate license law considered appropriate.
             4109          (e) (i) Three years' full-time experience as a [real estate] sales agent or its equivalent is
             4110      required before an applicant may apply for, and secure a principal broker or associate broker
             4111      license in this state.
             4112          (ii) The commission shall establish by rule, made in accordance with Title 63G,
             4113      Chapter 3, Utah Administrative Rulemaking Act, the criteria by which the commission will
             4114      accept experience or special education in similar fields of business in lieu of the three years'
             4115      experience.
             4116          (2) (a) The division, with the concurrence of the commission, may require an applicant
             4117      to furnish a sworn statement setting forth evidence satisfactory to the division of the applicant's


             4118      reputation and competency as set forth by rule.
             4119          (b) The division shall require an applicant to provide the applicant's Social Security
             4120      number, which is a private record under Subsection 63G-2-302 (1)(h).
             4121          (3) (a) [A nonresident principal broker may be licensed in this state by complying] An
             4122      individual who is not a resident of this state may be licensed in this state if the person complies
             4123      with all the provisions of this chapter [except that of residency].
             4124          (b) [A nonresident] An individual who is not a resident of this state may be licensed as
             4125      an associate broker or sales agent [may become licensed] in this state by:
             4126          (i) complying with all the provisions of this chapter [except that of residency]; and
             4127          (ii) being employed or engaged as an independent contractor by or on behalf of a
             4128      [nonresident or resident] principal broker who is licensed in this state, regardless of whether
             4129      the principal broker is a resident of this state.
             4130          (4) (a) Except as provided in Subsection [ 61-2-9 ] 61-2f-204 (1)(e)[(iv)](vi), the division
             4131      and commission shall treat an application to be relicensed of an applicant whose real estate
             4132      license is revoked as an original application.
             4133          (b) In the case of an applicant for a new license as a principal broker or associate
             4134      broker, the applicant is not entitled to credit for experience gained before the revocation of a
             4135      real estate license.
             4136          (5) (a) Notwithstanding Subsection (1), the commission may delegate to the division
             4137      the authority to:
             4138          (i) review a class or category of applications for initial or renewed licenses;
             4139          (ii) determine whether an applicant meets the licensing criteria in Subsection (1); and
             4140          (iii) approve or deny a license application without concurrence by the commission.
             4141          (b) (i) If the commission delegates to the division the authority to approve or deny an
             4142      application without concurrence by the commission and the division denies an application for
             4143      licensure, the applicant who is denied licensure may petition the commission for review of the
             4144      denial of licensure.
             4145          (ii) An applicant who is denied licensure pursuant to this Subsection (5) may seek
             4146      agency review by the executive director only after the commission has reviewed the division's
             4147      denial of the applicant's application.
             4148          Section 77. Section 61-2f-204 , which is renumbered from Section 61-2-9 is


             4149      renumbered and amended to read:
             4150           [61-2-9].     61-2f-204. Licensing fees and procedures -- Renewal fees and
             4151      procedures.
             4152          (1) (a) Upon filing an application for [a principal broker, associate broker, or sales
             4153      agent license examination] an examination for a license under this chapter, the applicant shall
             4154      pay a nonrefundable fee as determined by the commission with the concurrence of the division
             4155      under Section 63J-1-504 for admission to the examination.
             4156          (b) [A] An applicant for a principal broker, associate broker, or sales agent [applicant]
             4157      license shall pay a nonrefundable fee as determined by the commission with the concurrence of
             4158      the division under Section 63J-1-504 for issuance of an initial license or license renewal.
             4159          (c) A license issued under this Subsection (1) shall be issued for a period of not less
             4160      than two years as determined by the division with the concurrence of the commission.
             4161          (d) (i) Any of the following applicants shall comply with this Subsection (1)(d):
             4162          (A) a new sales agent applicant; [or]
             4163          (B) a principal broker applicant[.]; or
             4164          (C) an associate broker applicant.
             4165          (ii) An applicant described in this Subsection (1)(d) shall:
             4166          (A) submit fingerprint cards in a form acceptable to the division at the time the license
             4167      application is filed; and
             4168          (B) consent to a criminal background check by the Utah Bureau of Criminal
             4169      Identification and the Federal Bureau of Investigation regarding the application.
             4170          (iii) The division shall request the Department of Public Safety to complete a Federal
             4171      Bureau of Investigation criminal background check for each applicant described in this
             4172      Subsection (1)(d) through the national criminal history system or any successor system.
             4173          (iv) The applicant shall pay the cost of the criminal background check and the
             4174      fingerprinting.
             4175          (v) [Monies] Money paid to the division by an applicant for the cost of the criminal
             4176      background check [are] is nonlapsing.
             4177          (e) (i) A license issued under Subsection (1)(d) is conditional, pending completion of
             4178      the criminal background check. [If]
             4179          (ii) A license is immediately and automatically revoked if the criminal background


             4180      check discloses the applicant fails to accurately disclose a criminal history[, the license shall be
             4181      immediately and automatically revoked.] involving:
             4182          (A) the real estate industry;
             4183          (B) fraud;
             4184          (C) misrepresentation; or
             4185          (D) deceit.
             4186          (iii) If a criminal background check discloses that an applicant fails to accurately
             4187      disclose a criminal history other than one described in Subsection (1)(e)(ii), the division:
             4188          (A) shall review the application; and
             4189          (B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
             4190      Utah Administrative Rulemaking Act, may:
             4191          (I) place a condition on a license;
             4192          (II) place a restriction on a license;
             4193          (III) revoke a license; or
             4194          (IV) refer the application to the commission for a decision.
             4195          [(ii)] (iv) A person whose conditional license is automatically revoked under
             4196      Subsection (1)(e)[(i)](ii) or whose license is conditioned, restricted, or revoked under
             4197      Subsection (1)(e)(iii) may have a [post-revocation] hearing after the action is taken to challenge
             4198      the [revocation] action. The hearing shall be conducted in accordance with Title 63G, Chapter
             4199      4, Administrative Procedures Act.
             4200          [(iii)] (v) The [division] director shall designate one of the following to act as the
             4201      presiding officer in a [postrevocation] hearing described in [this] Subsection (1)(e)(iv):
             4202          (A) the division; or
             4203          (B) the division with the concurrence of the commission.
             4204          [(iv)] (vi) The decision on whether relief from [the revocation of a license] an action
             4205      under this Subsection (1)(e) will be granted shall be made by the presiding officer.
             4206          [(v)] (vii) Relief from [a] an automatic revocation under [this] Subsection (1)(e)(ii)
             4207      may be granted only if:
             4208          (A) the criminal history upon which the division based the revocation:
             4209          (I) did not occur; or
             4210          (II) is the criminal history of another person;


             4211          (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
             4212          (II) the applicant has a reasonable good faith belief at the time of application that there
             4213      was no criminal history to be disclosed; or
             4214          (C) the division fails to follow the prescribed procedure for the revocation.
             4215          [(vi)] (viii) If a license is revoked or a revocation under this Subsection (1)(e) is upheld
             4216      after a [post-revocation] hearing, the [person] individual may not apply for a new license until
             4217      at least 12 months after the day on which the license is revoked.
             4218          (2) (a) (i) A license expires if it is not renewed on or before its expiration date.
             4219          (ii) As a condition of renewal, an active licensee shall demonstrate competence by
             4220      completing 18 hours of continuing education within a two-year renewal period subject to rules
             4221      made by the commission, with the concurrence of the division.
             4222          (iii) In making a rule described in Subsection (2)(c)(ii), the division and commission
             4223      shall consider:
             4224          (A) evaluating continuing education on the basis of competency, rather than course
             4225      time;
             4226          (B) allowing completion of courses in a significant variety of topic areas that the
             4227      division and commission determine are valuable in assisting an individual licensed under this
             4228      chapter to increase the individual's competency; and
             4229          (C) allowing completion of courses that will increase a licensee's professional
             4230      competency in the area of practice of the licensee.
             4231          [(iv) The division with the concurrence of the commission shall certify the continuing
             4232      education required under this Subsection (2)(a) which may include:]
             4233          [(A) state conventions;]
             4234          [(B) home study courses;]
             4235          [(C) video courses; and]
             4236          [(D) closed circuit television courses.]
             4237          [(v)] (iv) The [commission with concurrence of the] division may [exempt] award
             4238      credit to a licensee [from all or a part of the] for a continuing education requirement of this
             4239      Subsection (2)(a) for a reasonable period of time[: (A)] upon a finding of reasonable cause,
             4240      including:
             4241          [(I)] (A) military service; or


             4242          [(II)] (B) if an individual is elected or appointed to government service, the individual's
             4243      government service during which the individual spends a substantial time addressing real estate
             4244      issues[; and (B) under] subject to conditions established by rule made in accordance with Title
             4245      63G, Chapter 3, Utah Administrative Rulemaking Act.
             4246          (b) For a period of 30 days after the expiration date of a license, the license may be
             4247      reinstated upon:
             4248          (i) payment of a renewal fee and a late fee determined by the commission with the
             4249      concurrence of the division under Section 63J-1-504 ; and
             4250          (ii) providing proof acceptable to the division and the commission of the licensee
             4251      having:
             4252          (A) completed the hours of education required by Subsection (2)(a); or
             4253          (B) demonstrated competence as required under Subsection (2)(a).
             4254          (c) After the 30-day period described in Subsection (2)(b), and until six months after
             4255      the expiration date, the license may be reinstated by:
             4256          (i) paying a renewal fee and a late fee determined by the commission with the
             4257      concurrence of the division under Section 63J-1-504 ;
             4258          (ii) providing to the division proof of satisfactory completion of [12] six hours of
             4259      continuing education:
             4260          (A) in addition to the requirements for a timely renewal; and
             4261          (B) on a subject determined by the commission by rule made in accordance with Title
             4262      63G, Chapter 3, Utah Administrative Rulemaking Act; and
             4263          (iii) providing proof acceptable to the division and the commission of the licensee
             4264      having:
             4265          (A) completed the hours of education required under Subsection (2)(a); or
             4266          (B) demonstrated competence as required under Subsection (2)(a).
             4267          (d) After the six-month period described in Subsection (2)(c), and until one year after
             4268      the expiration date, the license may be reinstated by:
             4269          (i) paying a renewal fee and a late fee determined by the commission with the
             4270      concurrence of the division under Section 63J-1-504 ;
             4271          (ii) providing to the division proof of satisfactory completion of 24 hours of continuing
             4272      education:


             4273          (A) in addition to the requirements for a timely renewal; and
             4274          (B) on a subject determined by the commission by rule made in accordance with Title
             4275      63G, Chapter 3, Utah Administrative Rulemaking Act; and
             4276          (iii) providing proof acceptable to the division and the commission of the licensee
             4277      having:
             4278          (A) completed the hours of education required by Subsection (2)(a); or
             4279          (B) demonstrated competence as required under Subsection (2)(a).
             4280          (e) The division shall relicense a person who does not renew that person's license
             4281      within one year as prescribed for an original application.
             4282          (f) Notwithstanding Subsection (2)(a), the division may extend the term of a license
             4283      that would expire under Subsection (2)(a) except for the extension if:
             4284          (i) the person complies with the requirements of this section to renew the license; and
             4285          (ii) at the time of the extension, there is pending under this chapter:
             4286          (A) the application for renewal of the license; or
             4287          (B) a disciplinary action.
             4288          (3) (a) As a condition for the activation of an inactive license that was in an inactive
             4289      status at the time of the licensee's most recent renewal, the licensee shall supply the division
             4290      with proof of:
             4291          (i) successful completion of the respective sales agent or principal broker licensing
             4292      examination within six months prior to applying to activate the license; or
             4293          (ii) the successful completion of the hours of continuing education that the licensee
             4294      would have been required to complete under Subsection (2)(a) if the license had been on active
             4295      status at the time of the licensee's most recent renewal.
             4296          (b) The commission may, in accordance with Title 63G, Chapter 3, Utah
             4297      Administrative Rulemaking Act, establish by rule:
             4298          (i) the nature or type of continuing education required for reactivation of a license; and
             4299          (ii) how long before reactivation the continuing education must be completed.
             4300          [(4) (a) A principal broker license may be granted to a corporation, partnership, or
             4301      association if the corporation, partnership, or association has affiliated with it an individual
             4302      who:]
             4303          [(i) has qualified as a principal broker under the terms of this chapter; and]


             4304          [(ii) serves in the capacity of a principal broker.]
             4305          [(b) Application for the license described in Subsection (4)(a) shall be made in
             4306      accordance with the rules adopted by the division with the concurrence of the commission.]
             4307          [(5) The division may charge and collect reasonable fees determined by the
             4308      commission with the concurrence of the division under Section 63J-1-504 to cover the costs
             4309      for:]
             4310          [(a) issuance of a new or duplicate license;]
             4311          [(b) a license history or certification;]
             4312          [(c) a certified copy of an official document, order, or other paper or transcript;]
             4313          [(d) certifying a real estate school, course, or instructor, the fees for which shall,
             4314      notwithstanding Section 13-1-2 , be deposited in the Real Estate Education, Research, and
             4315      Recovery Fund; and]
             4316          [(e) other duties required by this chapter.]
             4317          [(6) If a licensee submits or causes to be submitted a check, draft, or other negotiable
             4318      instrument to the division for payment of a fee, and the check, draft, or other negotiable
             4319      instrument is dishonored, the transaction for which the payment is submitted is void and will
             4320      be reversed by the division if payment of the applicable fee is not received in full.]
             4321          [(7) (a) A fee under this chapter and the additional license fee for the Real Estate
             4322      Education, Research, and Recovery Fund under Section 61-2a-4 are in lieu of all other license
             4323      fees or assessments that might otherwise be imposed or charged by the state or any of its
             4324      political subdivisions, upon, or as a condition of, the privilege of conducting the business
             4325      regulated by this chapter, except that a political subdivision within the state may charge a
             4326      business license fee on a principal broker if the principal broker maintains a place of business
             4327      within the jurisdiction of the political subdivision.]
             4328          [(b) Unless otherwise exempt, a licensee under this chapter is subject to all taxes
             4329      imposed under Title 59, Revenue and Taxation.]
             4330          Section 78. Section 61-2f-205 , which is renumbered from Section 61-2-7 is
             4331      renumbered and amended to read:
             4332           [61-2-7].     61-2f-205. Form of license -- Display of license.
             4333          (1) The division shall issue to [each] a licensee a wall license [showing] that contains:
             4334          (a) the name and address of the licensee[. The];


             4335          (b) the seal of the state [shall be affixed to each license. Each license shall contain];
             4336      and
             4337          (c) any other matter prescribed by the division [and shall be delivered or mailed to].
             4338          (2) The division shall send the license described in Subsection (1) to the licensee at the
             4339      address furnished by the licensee. [The wall licenses of principal brokers, associate brokers,
             4340      and sales agents who are affiliated with an office shall be kept in the office]
             4341          (3) A principal broker shall keep the license of the principal broker and the license of
             4342      any associate broker or sales agent affiliated with the principal broker in the office in which the
             4343      licensee works to be made available on request.
             4344          Section 79. Section 61-2f-206 is enacted to read:
             4345          61-2f-206. Registration of entity or branch office -- Certification of education
             4346      providers and courses -- Specialized licenses.
             4347          (1) (a) An entity may not engage in an activity described in Section 61-2f-201 , unless it
             4348      is registered with the division.
             4349          (b) To register with the division under this Subsection (1), an entity shall submit to the
             4350      division:
             4351          (i) an application in a form required by the division;
             4352          (ii) evidence of an affiliation with a principal broker;
             4353          (iii) evidence that the entity is registered and in good standing with the Division of
             4354      Corporations and Commercial Code; and
             4355          (iv) a registration fee established by the commission with the concurrence of the
             4356      division under Section 63J-1-504 .
             4357          (2) (a) A principal broker shall register with the division each of the principal broker's
             4358      branch offices.
             4359          (b) To register a branch office with the division under this Subsection (2), a principal
             4360      broker shall submit to the division:
             4361          (i) an application in a form required by the division; and
             4362          (ii) a registration fee established by the commission with the concurrence of the
             4363      division under Section 63J-1-504 .
             4364          (3) (a) In accordance with rules made by the commission, the division shall certify:
             4365          (i) a real estate school;


             4366          (ii) a course provider; or
             4367          (iii) an instructor.
             4368          (b) In accordance with rules made by the commission, and with the concurrence of the
             4369      commission, the division shall certify a continuing education course that is required under this
             4370      section.
             4371          (4) (a) Except as provided by rule, a principal broker may not be responsible for more
             4372      than one registered entity at the same time.
             4373          (b) (i) In addition to issuing a principal broker license, associate broker license, or sales
             4374      agent license authorizing the performance of an act set forth in Section 61-2f-201 , the division
             4375      may issue a specialized sales license or specialized property management license with the
             4376      scope of practice limited to the specialty.
             4377          (ii) An individual may hold a specialized license in addition to a license as a principal
             4378      broker, associate broker, or a sales agent.
             4379          (iii) The commission may adopt rules pursuant to Title 63G, Chapter 3, Utah
             4380      Administrative Rulemaking Act, for the administration of this Subsection (4), including:
             4381          (A) prelicensing and postlicensing education requirements;
             4382          (B) examination requirements;
             4383          (C) affiliation with real estate brokerages or property management companies; and
             4384          (D) other licensing procedures.
             4385          Section 80. Section 61-2f-207 , which is renumbered from Section 61-2-7.1 is
             4386      renumbered and amended to read:
             4387           [61-2-7.1].     61-2f-207. Change of information -- Failure to notify.
             4388          (1) An applicant, licensee, registrant, or certificate holder shall send the division a
             4389      signed statement in the form required by the division notifying the division within 10 business
             4390      days of any change of:
             4391          (a) principal broker;
             4392          (b) principal business location;
             4393          (c) mailing address;
             4394          (d) home street address;
             4395          (e) an individual's name; or
             4396          (f) business name.


             4397          (2) The division may charge a fee established by the commission with the concurrence
             4398      of the division in accordance with Section 63J-1-504 for processing any notification of change
             4399      submitted by an applicant, licensee, registrant, or certificate holder.
             4400          (3) (a) When providing the division a business location or home street address, a
             4401      physical location or street address must be provided.
             4402          (b) When providing a mailing address, an applicant, licensee, registrant, or certificate
             4403      holder may provide a post office box or other mail drop location.
             4404          (4) Failure to notify the division of a change described in Subsection (1) is separate
             4405      grounds for disciplinary action against [the] an applicant, licensee, registrant, or certificate
             4406      holder.
             4407          (5) An applicant, licensee, registrant, or certificate holder is considered to have
             4408      received any notification that has been sent to the last address furnished to the division by the
             4409      applicant, licensee, registrant, or certificate holder.
             4410          Section 81. Section 61-2f-301 , which is renumbered from Section 61-2-7.2 is
             4411      renumbered and amended to read:
             4412     
Part 3. Operational Requirements

             4413           [61-2-7.2].     61-2f-301. Reporting requirements.
             4414          A licensee shall notify the division of the following by sending the division a signed
             4415      statement within 10 business days of:
             4416          (1) (a) a conviction of a criminal offense;
             4417          (b) the entry of a plea in abeyance to a criminal offense; or
             4418          (c) the potential resolution of a criminal case by:
             4419          (i) a diversion agreement; or
             4420          (ii) [any other] another agreement under which a criminal charge is held in suspense
             4421      for a period of time; [or]
             4422          (2) filing a personal or brokerage bankruptcy[.];
             4423          (3) the suspension, revocation, surrender, cancellation, or denial of a license or
             4424      registration of the licensee that is necessary to engage in an occupation or profession,
             4425      regardless of whether the license or registration is issued by this state or another jurisdiction; or
             4426          (4) the entry of a cease and desist order or a temporary or permanent injunction:
             4427          (a) against the licensee by a court or administrative agency; and


             4428          (b) on the basis of:
             4429          (i) conduct or a practice involving the business of real estate; or
             4430          (ii) conduct involving fraud, misrepresentation, or deceit.
             4431          Section 82. Section 61-2f-302 , which is renumbered from Section 61-2-10 is
             4432      renumbered and amended to read:
             4433           [61-2-10].     61-2f-302. Affiliation with more than one principal broker --
             4434      Specialized licenses -- Designation of agents or brokers.
             4435          [(1) (a) Except as provided in Subsection (1)(b), an associate broker or sales agent may
             4436      not accept valuable consideration for the performance of an act specified in this chapter from a
             4437      person except the principal broker with whom the associate broker or sales agent is affiliated
             4438      and licensed.]
             4439          [(b) An associate broker or sales agent may receive valuable consideration for the
             4440      performance of an act specified in this chapter from a person other than the principal broker
             4441      with whom the associate broker or sales agent is affiliated if:]
             4442          [(i) the valuable consideration is paid with a payment instrument prepared by a title
             4443      insurance agent;]
             4444          [(ii) the title insurance agent provides the payment instrument to the principal broker;]
             4445          [(iii) the title insurance agent complies with the written instructions of the principal
             4446      broker:]
             4447          [(A) in preparing the payment instrument; and]
             4448          [(B) delivering the payment instrument to the principal broker; and]
             4449          [(iv) the principal broker directly delivers the payment instrument to the associate
             4450      broker or sales agent.]
             4451          [(c) The commission, with the concurrence of the division, shall make rules in
             4452      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:]
             4453          [(i) defining what constitutes a "payment instrument" for purposes of this Subsection
             4454      (1); or]
             4455          [(ii) the form and contents of the written instructions required by Subsection (1)(b),
             4456      including providing that the contents of the written instructions indicate that the payment
             4457      instrument process is an assignment to the associate broker or sales agent by the principal
             4458      broker of a portion of the consideration the title insurance agent is obligated to pay the


             4459      principal broker.]
             4460          (1) An individual who is not a principal broker may not engage in an act described in
             4461      Section 61-2f-201 unless the individual is affiliated with a principal broker as:
             4462          (a) an associate broker; or
             4463          (b) a sales agent.
             4464          (2) (a) An inactive associate broker or sales agent may not conduct a real estate
             4465      transaction until the inactive associate broker or sales agent becomes affiliated with a
             4466      [licensed] principal broker and submits the required documentation to the division.
             4467          (b) An inactive principal broker may not conduct a real estate transaction until the
             4468      principal broker's license is activated with the division.
             4469          (3) A sales agent or associate broker may not affiliate with more than one principal
             4470      broker at the same time.
             4471          [(4) (a) Except as provided by rule, a principal broker may not be responsible for more
             4472      than one real estate brokerage at the same time.]
             4473          [(b) (i) In addition to issuing principal broker, associate broker, and sales agent licenses
             4474      authorizing the performance of all of the acts set forth in Subsection 61-2-2 (12), the division
             4475      may issue specialized sales licenses and specialized property management licenses with the
             4476      scope of practice limited to the specialty.]
             4477          [(ii) An individual may hold a specialized license in addition to a license to act as a
             4478      principal broker, an associate broker, or a sales agent.]
             4479          [(iii) The commission may adopt rules pursuant to Title 63G, Chapter 3, Utah
             4480      Administrative Procedures Act, for the administration of this Subsection (4), including:]
             4481          [(A) prelicensing and postlicensing education requirements;]
             4482          [(B) examination requirements;]
             4483          [(C) affiliation with real estate brokerages or property management companies; and]
             4484          [(D) other licensing procedures.]
             4485          [(c)] (4) An individual may not be a principal broker of [a brokerage] an entity and a
             4486      sales agent or associate broker for a different [brokerage] entity at the same time.
             4487          (5) An owner, purchaser, lessor, or lessee who engages the services of a principal
             4488      broker may designate which sales agents or associate brokers affiliated with that principal
             4489      broker will also represent that owner, purchaser, lessor, or lessee in the purchase, sale, lease, or


             4490      exchange of real estate, or in exercising an option relating to real estate.
             4491          Section 83. Section 61-2f-303 , which is renumbered from Section 61-2-25 is
             4492      renumbered and amended to read:
             4493           [61-2-25].     61-2f-303. Sales agents or associate broker -- Affiliated with
             4494      principal broker as independent contractors or employees -- Presumption.
             4495          A sales agent or associate broker may be affiliated with a [licensed] principal [real
             4496      estate] broker either as an independent contractor or as an employee. The relationship between
             4497      sales agent or associate broker and principal broker is presumed to be an independent
             4498      contractor relationship unless there is clear and convincing evidence that the relationship was
             4499      intended by the parties to be an employer employee relationship.
             4500          Section 84. Section 61-2f-304 , which is renumbered from Section 61-2-8 is
             4501      renumbered and amended to read:
             4502           [61-2-8].     61-2f-304. Termination of associate broker or sales agent by
             4503      principal broker -- Notice.
             4504          [If] (1) If a principal broker terminates an associate broker or sales agent [is discharged
             4505      by a principal broker], the principal broker shall[, within three days, send] by no later than three
             4506      days from the day on which the principal broker terminates the associate broker or sales agent:
             4507          (a) provide the division a signed statement notifying the division of the [discharge.
             4508      The principal broker shall address a communication] termination; and
             4509          (b) send to the last-known residence address of that associate broker or sales agent
             4510      [advising him that notice of his termination has been delivered or sent to the division. It is
             4511      unlawful for any] notice that the principal broker has notified the division of the termination of
             4512      the associate broker or sales agent.
             4513          (2) An associate broker or sales agent [to] may not perform any [of the acts] act under
             4514      this chapter, directly or indirectly, from and after the date of receipt of the termination notice by
             4515      the division until [affiliation with a principal broker has been established] the day on which the
             4516      associate broker or sales agent is affiliated with a principal broker.
             4517          Section 85. Section 61-2f-305 is enacted to read:
             4518          61-2f-305. Restrictions on commissions.
             4519          (1) Except as provided in Subsection (2), an associate broker or sales agent may not
             4520      accept valuable consideration for the performance of an act specified in this chapter from a


             4521      person except the principal broker with whom the associate broker or sales agent is affiliated.
             4522          (2) An associate broker or sales agent may receive valuable consideration for the
             4523      performance of an act specified in this chapter from a person other than the principal broker
             4524      with whom the associate broker or sales agent is affiliated if:
             4525          (a) the valuable consideration is paid with a payment instrument prepared by a title
             4526      insurance agent;
             4527          (b) the title insurance agent provides the payment instrument to the principal broker;
             4528          (c) the title insurance agent complies with the written instructions of the principal
             4529      broker:
             4530          (i) in preparing the payment instrument; and
             4531          (ii) delivering the payment instrument to the principal broker; and
             4532          (d) the principal broker directly delivers the payment instrument to the associate broker
             4533      or sales agent.
             4534          (3) The commission, with the concurrence of the division, shall make rules in
             4535      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             4536          (a) defining what constitutes a "payment instrument" for purposes of this section; or
             4537          (b) the form and contents of the written instructions required by Subsection (2),
             4538      including providing that the contents of the written instructions indicate that the payment
             4539      instrument process is an assignment to the associate broker or sales agent by the principal
             4540      broker of a portion of the consideration the title insurance agent is obligated to pay the
             4541      principal broker.
             4542          Section 86. Section 61-2f-306 , which is renumbered from Section 61-2-20 is
             4543      renumbered and amended to read:
             4544           [61-2-20].     61-2f-306. Rights and privileges of real estate licensees to fill out
             4545      forms or documents.
             4546          (1) Except as provided in Subsection (2), a real estate licensee may fill out only those
             4547      legal forms approved by the commission and the attorney general, and those forms provided by
             4548      statute.
             4549          (2) (a) (i) A principal broker may fill out any documents associated with the closing of
             4550      a real estate transaction.
             4551          (ii) A branch broker or associate broker may fill out any documents associated with the


             4552      closing of a real estate transaction if designated to fill out the documents by the principal
             4553      broker with whom the branch broker or associate broker is affiliated.
             4554          (b) A real estate licensee may fill out real estate forms prepared by legal counsel of the
             4555      buyer, seller, lessor, or lessee.
             4556          (c) If the commission and the attorney general have not approved a specific form for
             4557      the transaction, a principal broker, associate broker, or sales agent may fill out real estate forms
             4558      prepared by any legal counsel, including legal counsel retained by the brokerage to develop
             4559      these forms.
             4560          (3) The commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
             4561      Administrative Rulemaking Act, provide a process for the approval of a legal form under this
             4562      section by the commission and the attorney general.
             4563          Section 87. Section 61-2f-307 , which is renumbered from Section 61-2-26 is
             4564      renumbered and amended to read:
             4565           [61-2-26].     61-2f-307. Rulemaking required for offer or sale of an undivided
             4566      fractionalized long-term estate -- Disclosures -- Management agreement.
             4567          (1) (a) A licensee or certificate holder under this chapter who sells or offers to sell an
             4568      undivided fractionalized long-term estate shall comply with the disclosure requirements
             4569      imposed by rules made by the commission under this section.
             4570          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             4571      commission shall make rules as to the timing, form, and substance of disclosures required to be
             4572      made by a licensee or certificate holder under this section.
             4573          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             4574      commission shall make rules imposing requirements for a management agreement related to an
             4575      undivided fractionalized long-term estate that makes the offer or sale of the undivided
             4576      fractionalized long-term estate treated as a real estate transaction and not treated as an offer or
             4577      sale of a security under Chapter 1, Utah Uniform Securities Act.
             4578          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             4579      commission shall make rules establishing:
             4580          (a) the disclosures required in the sale or offer of an undivided fractionalized long-term
             4581      estate that is subject to a master lease;
             4582          (b) requirements for the management of a master lease on an undivided fractionalized


             4583      long-term estate; and
             4584          (c) the requirements on the structure of a master lease on an undivided fractionalized
             4585      long-term estate.
             4586          Section 88. Section 61-2f-308 , which is renumbered from Section 61-2-27 is
             4587      renumbered and amended to read:
             4588           [61-2-27].     61-2f-308. Exclusive brokerage agreement.
             4589          (1) As used in this section:
             4590          (a) "Client" means a person who makes an exclusive brokerage agreement with a
             4591      principal broker under Subsection (1)(c).
             4592          (b) "Closed" means that:
             4593          (i) [all] the documents required to be executed under the contract are executed;
             4594          (ii) [all monies] the money required to be paid by either party under the contract [are]
             4595      is paid in the form of collected or cleared funds;
             4596          (iii) the proceeds of any new loan are delivered by the lender to the seller; and
             4597          (iv) [all] the applicable documents are recorded in the office of the county recorder for
             4598      the county in which the [property] real estate is located.
             4599          (c) "Exclusive brokerage agreement" means a written agreement between a client and a
             4600      principal broker:
             4601          (i) (A) to list for sale, lease, or exchange:
             4602          (I) real estate;
             4603          (II) an option on real estate; or
             4604          (III) an improvement on real estate; or
             4605          (B) for representation in the purchase, lease, or exchange of:
             4606          (I) real estate;
             4607          (II) an option on real estate; or
             4608          (III) an improvement on real estate;
             4609          (ii) that gives the principal broker the sole right to act as the agent or representative of
             4610      the client for the purchase, sale, lease, or exchange of:
             4611          (A) real estate;
             4612          (B) an option on real estate; or
             4613          (C) an improvement on real estate; and


             4614          (iii) that gives the principal broker the expectation of receiving valuable consideration
             4615      in exchange for the principal broker's services.
             4616          (2) (a) Except as provided in Subsection (2)(b), a principal broker subject to an
             4617      exclusive brokerage agreement shall:
             4618          (i) accept delivery of and present to the client offers and counteroffers to buy, lease, or
             4619      exchange the client's [property] real estate;
             4620          (ii) assist the client in developing, communicating, and presenting offers, counteroffers,
             4621      and notices; and
             4622          (iii) answer any question the client has concerning:
             4623          (A) an offer;
             4624          (B) a counteroffer;
             4625          (C) a notice; and
             4626          (D) a contingency.
             4627          (b) A principal broker subject to an exclusive brokerage agreement need not comply
             4628      with Subsection (2)(a) after:
             4629          (i) (A) an agreement for the sale, lease, or exchange of the real estate, option on real
             4630      estate, or improvement on real estate is[: (A)] signed;
             4631          (B) [all] the contingencies related to the sale, lease, or exchange are satisfied or
             4632      waived; and
             4633          (C) the sale, lease, or exchange is closed; or
             4634          (ii) the exclusive brokerage agreement expires or terminates.
             4635          (3) A principal broker who violates this section is subject to [Section 61-2-17 ] Sections
             4636      61-2f-404 and 61-2f-405 .
             4637          Section 89. Section 61-2f-401 , which is renumbered from Section 61-2-11 is
             4638      renumbered and amended to read:
             4639     
Part 4. Enforcement

             4640           [61-2-11].     61-2f-401. Grounds for disciplinary action.
             4641          The following acts are unlawful for a person required to be licensed under this chapter:
             4642          (1) (a) making a substantial misrepresentation;
             4643          (b) making an intentional misrepresentation;
             4644          (c) pursuing a continued and flagrant course of misrepresentation;


             4645          (d) making a false representation or promise through an agent, sales agent, advertising,
             4646      or otherwise; or
             4647          [(2)] (e) making a false representation or promise of a character likely to influence,
             4648      persuade, or induce;
             4649          [(3) pursuing a continued and flagrant course of misrepresentation, or of making false
             4650      promises through agents, sales agents, advertising, or otherwise;]
             4651          [(4)] (2) acting for more than one party in a transaction without the informed consent
             4652      of all parties;
             4653          [(5)] (3) (a) acting as an associate broker or sales agent while not [licensed] affiliated
             4654      with a [licensed] principal broker;
             4655          (b) representing or attempting to represent a principal broker other than the principal
             4656      broker with whom the person is affiliated; or
             4657          (c) representing as sales agent or having a contractual relationship similar to that of
             4658      sales agent with a person other than a [licensed] principal broker;
             4659          [(6)] (4) (a) failing, within a reasonable time, to account for or to remit [monies coming
             4660      into the] money that belongs to another and comes into the person's possession [that belong to
             4661      others];
             4662          (b) commingling [the monies] money described in Subsection [(6)] (4)(a) with the
             4663      person's own [monies] money; or
             4664          (c) diverting [the monies] money described in Subsection [(6)] (4)(a) from the purpose
             4665      for which [they were] the money is received;
             4666          [(7)] (5) paying or offering to pay valuable consideration, as defined by the
             4667      commission, to a person not licensed under this chapter, except that valuable consideration
             4668      may be shared:
             4669          (a) with a [licensed] principal broker of another jurisdiction; or
             4670          (b) as provided under:
             4671          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act;
             4672          (ii) Title 16, Chapter 11, Professional Corporation Act; or
             4673          (iii) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act;
             4674          [(8)] (6) being [unworthy or] incompetent to act as a principal broker, associate broker,
             4675      or sales agent in such manner as to safeguard the interests of the public;


             4676          [(9)] (7) failing to voluntarily furnish a copy of a document to all parties [executing
             4677      the] before and after the execution of a document;
             4678          [(10)] (8) failing to keep and make available for inspection by the division a record of
             4679      each transaction, including:
             4680          (a) the names of buyers and sellers or lessees and lessors;
             4681          (b) the identification of [the property] real estate;
             4682          (c) the sale or rental price;
             4683          (d) [monies] money received in trust;
             4684          (e) agreements or instructions from buyers and sellers or lessees and lessors; and
             4685          (f) any other information required by rule;
             4686          [(11)] (9) failing to disclose, in writing, in the purchase, sale, or rental of [property]
             4687      real estate, whether the purchase, sale, or rental is made for that person or for an undisclosed
             4688      principal;
             4689          [(12) regardless of whether the crime is related to real estate,]
             4690          (10) being convicted of a criminal offense involving moral turpitude within five years
             4691      of the most recent application[,]:
             4692          (a) regardless of whether the criminal offense is related to real estate; and
             4693          (b) including:
             4694          [(a)] (i) a conviction based upon a plea of nolo contendere; or
             4695          [(b)] (ii) a plea held in abeyance to a criminal offense involving moral turpitude;
             4696          [(13)] (11) advertising the availability of real estate or the services of a licensee in a
             4697      false, misleading, or deceptive manner;
             4698          [(14)] (12) in the case of a principal broker or a licensee who is a branch manager,
             4699      failing to exercise reasonable supervision over the activities of the principal broker's or branch
             4700      manager's [licensee] licensed or unlicensed staff;
             4701          [(15)] (13) violating or disregarding:
             4702          (a) this chapter;
             4703          (b) an order of the commission; or
             4704          (c) the rules adopted by the commission and the division;
             4705          [(16)] (14) breaching a fiduciary duty owed by a licensee to the licensee's principal in a
             4706      real estate transaction;


             4707          [(17)] (15) any other conduct which constitutes dishonest dealing;
             4708          [(18)] (16) unprofessional conduct as defined by statute or rule;
             4709          [(19) on the basis of misconduct in a professional capacity that relates to character,
             4710      honesty, integrity, or truthfulness,]
             4711          (17) having one of the following suspended, revoked, surrendered, or cancelled on the
             4712      basis of misconduct in a professional capacity that relates to character, honesty, integrity, or
             4713      truthfulness:
             4714          (a) a real estate license, registration, or certificate issued by another jurisdiction; or
             4715          (b) another [professional] license, registration, or certificate to engage in an occupation
             4716      or profession issued by this state or another jurisdiction;
             4717          [(20)] (18) failing to respond to a request by the division in an investigation authorized
             4718      under this chapter, including:
             4719          (a) failing to respond to a subpoena;
             4720          (b) withholding evidence; or
             4721          (c) failing to produce documents or records;
             4722          [(21)] (19) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             4723          (a) providing a title insurance product or service without the approval required by
             4724      Section 31A-2-405 ; or
             4725          (b) knowingly providing false or misleading information in the statement required by
             4726      Subsection 31A-2-405 (2); or
             4727          [(22)] (20) violating an independent contractor agreement between a principal broker
             4728      and a sales agent or associate broker as evidenced by a final judgment of a court.
             4729          Section 90. Section 61-2f-402 , which is renumbered from Section 61-2-11.5 is
             4730      renumbered and amended to read:
             4731           [61-2-11.5].     61-2f-402. Investigations.
             4732          (1) The division may make [any] an investigation within or outside of this state as the
             4733      division considers necessary to determine whether [any] a person has violated, is violating, or
             4734      is about to violate this chapter or any rule or order under this chapter.
             4735          (2) To aid in the enforcement of this chapter or in the prescribing of rules and forms
             4736      under this chapter, the division may require or permit [any] a person to file a statement in
             4737      writing, under oath or otherwise as to [all] the facts and circumstances concerning the matter to


             4738      be investigated.
             4739          (3) For the purpose of the investigation described in Subsection (1), the division or
             4740      [any] an employee designated by the division may:
             4741          (a) administer an oath or affirmation;
             4742          (b) subpoena witnesses and evidence;
             4743          (c) take evidence;
             4744          (d) require the production of a book, paper, contract, record, other document, or
             4745      information relevant to the investigation; and
             4746          (e) serve a subpoena by certified mail.
             4747          (4) (a) H. [ A ] If a person is found to have violated this chapter or a rule made under
             4747a      this chapter, the .H person shall pay the costs incurred by the division to copy a book, paper,
             4748      contract, document, or record required under this chapter, including the costs incurred to copy
             4749      an electronic book, paper, contract, document, or record in a universally readable format.
             4750          (b) If a person fails to pay the costs described in Subsection (4)(a) when due, the
             4751      person's license, certification, or registration is automatically suspended:
             4752          (i) beginning the day on which the payment of costs is due; and
             4753          (ii) ending the day on which the costs are paid.
             4754          Section 91. Section 61-2f-403 , which is renumbered from Section 61-2-24 is
             4755      renumbered and amended to read:
             4756           [61-2-24].     61-2f-403. Mishandling of trust funds.
             4757          (1) The division may audit principal brokers' trust accounts or other accounts in which
             4758      a licensee maintains trust [funds] money under this chapter. If the division's audit shows, in the
             4759      opinion of the division, gross mismanagement, commingling, or misuse of [funds] money, the
             4760      division, with the concurrence of the commission, may order a complete audit of the account
             4761      by a certified public accountant at the licensee's expense, or take other action in accordance
             4762      with Section [ 61-2-12 ] 61-2f-404 .
             4763          (2) The licensee may obtain agency review by the executive director or judicial review
             4764      of any division order.
             4765          (3) (a) If it appears that a person has grossly mismanaged, commingled, or otherwise
             4766      misused trust [funds] money, the division, with or without prior administrative proceedings,
             4767      may bring an action:
             4768          (i) in the district court of the district where:


             4769          (A) the person resides [or];
             4770          (B) the person maintains a place of business[,]; or [where]
             4771          (C) the act or practice occurred or is about to occur[,]; and
             4772          (ii) to enjoin the [acts or practices] act or practice and to enforce compliance with this
             4773      chapter or any rule or order under this chapter.
             4774          (b) Upon a proper showing, [the] a court shall grant injunctive relief or a temporary
             4775      restraining order, and may appoint a receiver or conservator. The division is not required to
             4776      post a bond in any court proceeding.
             4777          Section 92. Section 61-2f-404 , which is renumbered from Section 61-2-12 is
             4778      renumbered and amended to read:
             4779           [61-2-12].     61-2f-404. Disciplinary action -- Judicial review.
             4780          (1) (a) On the basis of a violation of this chapter, the commission with the concurrence
             4781      of the director, may issue an order:
             4782          (i) imposing an educational requirement;
             4783          (ii) imposing a civil penalty not to exceed the greater of:
             4784          (A) [$2,500] $5,000 for each violation; or
             4785          (B) the amount of any gain or economic benefit derived from each violation;
             4786          (iii) taking any of the following actions related to a license, registration, or certificate:
             4787          (A) revoking;
             4788          (B) suspending;
             4789          (C) placing on probation;
             4790          (D) denying the renewal, reinstatement, or application for an original license,
             4791      registration, or certificate; or
             4792          (E) in the case of denial or revocation of a license, registration, or certificate, setting a
             4793      waiting period for an applicant to apply for a license, registration, or certificate under this title;
             4794          (iv) issuing a cease and desist order;
             4795          (v) modifying an action described in Subsections (1)(a)(i) through (iv) if the
             4796      commission finds that the person complies with court ordered restitution; or
             4797          (vi) doing any combination of Subsections (1)(a)(i) through (v).
             4798          (b) (i) If the commission with the concurrence of the director issues an order that
             4799      orders a fine or educational requirements as part of a disciplinary action against a person,


             4800      including a stipulation and order, the commission shall state in the order the deadline by which
             4801      the person shall comply with the fine or educational requirements.
             4802          (ii) If a person fails to comply by the stated deadline:
             4803          (A) the person's license, registration, or certificate is automatically suspended:
             4804          (I) beginning the day specified in the order as the deadline for compliance; and
             4805          (II) ending the day on which the person complies in full with the order; and
             4806          (B) if the person fails to pay a fine required by an order, the division may begin a
             4807      collection process:
             4808          (I) established by the division, with the concurrence of the commission, by rule made
             4809      in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             4810          (II) subject to Title 63A, Chapter 8, Office of State Debt Collection.
             4811          [(b)] (c) If a licensee is an active sales agent or active associate broker, the division
             4812      shall inform the principal broker with whom the licensee is affiliated of the charge and of the
             4813      time and place of any hearing.
             4814          (2) (a) An applicant, certificate holder, licensee, registrant, or person aggrieved,
             4815      including the complainant, may obtain agency review by the executive director and judicial
             4816      review of any adverse ruling, order, or decision of the division.
             4817          (b) If an applicant, certificate holder, registrant, or licensee prevails in the appeal and
             4818      the court finds that the state action was undertaken without substantial justification, the court
             4819      may award reasonable litigation expenses to the applicant, certificate holder, registrant, or
             4820      licensee as provided under Title 78B, Chapter 8, Part 5, Small Business Equal Access to
             4821      Justice Act.
             4822          (c) (i) An order, ruling, or decision of the division shall take effect and become
             4823      operative 30 days after the service of the order, ruling, or decision unless otherwise provided in
             4824      the order.
             4825          (ii) If an appeal is taken by a licensee, registrant, or certificate holder, the division may
             4826      stay enforcement of an order, ruling, or decision in accordance with Section 63G-4-405 .
             4827          (iii) An appeal is governed by the Utah Rules of Appellate Procedure.
             4828          (3) The commission and the director shall comply with the procedures and
             4829      requirements of Title 63G, Chapter 4, Administrative Procedures Act, in an adjudicative
             4830      proceeding.


             4831          Section 93. Section 61-2f-405 , which is renumbered from Section 61-2-17 is
             4832      renumbered and amended to read:
             4833           [61-2-17].     61-2f-405. Criminal penalties for violation of chapter -- Other
             4834      penalties.
             4835          (1) (a) An individual required to be licensed under this chapter who violates this
             4836      chapter, in addition to being subject to a license sanction or a fine ordered by the commission,
             4837      is, upon conviction of a first violation, guilty of a class A misdemeanor.
             4838          (b) For a conviction under this Subsection (1)[(a)], imprisonment shall be for a term
             4839      not to exceed six months.
             4840          [(b) If a violator of this chapter is a corporation, the corporation is, upon conviction of
             4841      a first violation, guilty of a class A misdemeanor.]
             4842          (2) (a) Upon conviction of a second or subsequent violation, an individual is guilty of a
             4843      third degree felony.
             4844          (b) Imprisonment for a conviction under this Subsection (2)(a) shall be for a term not
             4845      to exceed two years.
             4846          [(b) If a corporation is convicted of a second or subsequent violation, the corporation is
             4847      guilty of a third degree felony.]
             4848          (3) An officer or agent of a corporation, [or] a member or agent of a partnership or
             4849      association, or an individual in a similar position of another type of entity who personally
             4850      participates in or is an accessory to any violation of this chapter by the [corporation,
             4851      partnership, or association,] entity is subject to the penalties prescribed for an individual.
             4852          (4) If a person receives money or its equivalent, as commission, compensation, or
             4853      profit by or in consequence of a violation of this chapter, that person is liable for an additional
             4854      penalty of not less than the amount of the money received and not more than three times the
             4855      amount of money received, as may be determined by the court. This penalty may be sued for in
             4856      any court of competent jurisdiction, and recovered by any person aggrieved for the person's
             4857      own use and benefit.
             4858          (5) A fine imposed by the commission and the director under this chapter shall,
             4859      notwithstanding Section 13-1-2 , be deposited into the Real Estate Education, Research, and
             4860      Recovery Fund to be used in a manner consistent with the requirements of [Chapter 2a] Part 5,
             4861      Real Estate Education, Research, and Recovery Fund Act.


             4862          Section 94. Section 61-2f-406 , which is renumbered from Section 61-2-13 is
             4863      renumbered and amended to read:
             4864           [61-2-13].     61-2f-406. Grounds for revocation of principal broker's license --
             4865      Automatic inactivation of affiliated associate brokers and sales agents licenses.
             4866          (1) (a) An unlawful act or violation of this chapter committed by a person listed in
             4867      Subsection (1)(b) is cause for:
             4868          (i) the revocation, suspension, or probation of a principal broker's license; or
             4869          (ii) the imposition of a fine against the principal broker in an amount not to exceed
             4870      [$2,500] $5,000 per violation.
             4871          (b) Subsection (1)(a) applies to an act or violation by any of the following:
             4872          (i) a [real estate] sales agent or associate broker employed by a [licensed] principal
             4873      broker;
             4874          (ii) a [real estate] sales agent or associate broker engaged as an independent contractor
             4875      by or on behalf of a [licensed] principal broker; or
             4876          (iii) an employee, officer, or member of a [licensed] principal broker.
             4877          (2) (a) The revocation or suspension of a principal broker license automatically
             4878      inactivates an associate broker or sales agent license granted to [a person] an individual by
             4879      reason of that [person's] individual's affiliation with the principal broker whose license is
             4880      revoked or suspended, pending a change of principal broker affiliation.
             4881          (b) A principal broker shall, before the effective date of a suspension or revocation of
             4882      the principal broker's license, notify in writing every licensee affiliated with the principal
             4883      broker of the revocation or suspension of the principal broker license.
             4884          Section 95. Section 61-2f-407 , which is renumbered from Section 61-2-21 is
             4885      renumbered and amended to read:
             4886           [61-2-21].     61-2f-407. Remedies and action for violations.
             4887          (1) (a) The director shall issue and serve upon a person an order directing that person to
             4888      cease and desist from an act if:
             4889          (i) the director has reason to believe that the person has been engaging, is about to
             4890      engage, or is engaging in the act constituting a violation of this chapter; and
             4891          (ii) it appears to the director that it would be in the public interest to stop the act.
             4892          (b) Within 10 days after receiving the order, the person upon whom the order is served


             4893      may request a hearing.
             4894          (c) Pending a hearing requested under Subsection (1)(b), a cease and desist order shall
             4895      remain in effect.
             4896          (d) If a request for a hearing is made, the division shall follow the procedures and
             4897      requirements of Title 63G, Chapter 4, Administrative Procedures Act.
             4898          (2) (a) After a hearing requested under Subsection (1), if the commission and the
             4899      director agree that an act of the person violates this chapter, the director:
             4900          (i) shall issue an order making the order issued under Subsection (1) permanent; and
             4901          (ii) may impose another disciplinary action under Section [ 61-2-12 ] 61-2f-404 .
             4902          (b) The director shall file suit in the name of the Department of Commerce and the
             4903      Division of Real Estate, in the district court in the county in which an act described in
             4904      Subsection (1) occurs or where the person resides or carries on business, to enjoin and restrain
             4905      the person from violating this chapter if:
             4906          (i) (A) a hearing is not requested under Subsection (1); and
             4907          (B) the person fails to cease the act described in Subsection (1); or
             4908          (ii) after discontinuing the act described in Subsection (1), the person again
             4909      commences the act.
             4910          (c) A district court of this state has jurisdiction of an action brought under this section.
             4911          (d) Upon a proper showing in an action brought under this section or upon a conviction
             4912      under Section 76-6-1203 , the court may:
             4913          (i) issue a permanent or temporary, prohibitory or mandatory injunction;
             4914          (ii) issue a restraining order or writ of mandamus;
             4915          (iii) enter a declaratory judgment;
             4916          (iv) appoint a receiver or conservator for the defendant or the defendant's assets;
             4917          (v) order disgorgement;
             4918          (vi) order rescission;
             4919          (vii) impose a civil penalty not to exceed the greater of:
             4920          (A) [$2,500] $5,000 for each violation; or
             4921          (B) the amount of any gain or economic benefit derived from a violation; and
             4922          (viii) enter any other relief the court considers just.
             4923          (e) The court may not require the division to post a bond in an action brought under


             4924      this Subsection (2).
             4925          (3) [Any] A license, certificate, or registration issued by the division to any person [or
             4926      entity] convicted of a violation of Section 76-6-1203 is automatically revoked.
             4927          (4) A remedy or action provided in this section does not limit, interfere with, or prevent
             4928      the prosecution of another remedy or action, including a criminal proceeding.
             4929          Section 96. Section 61-2f-408 , which is renumbered from Section 61-2-13.5 is
             4930      renumbered and amended to read:
             4931           [61-2-13.5].     61-2f-408. Court-ordered discipline.
             4932          The division shall promptly withhold, suspend, restrict, or reinstate the use of a license
             4933      issued under this chapter if so ordered by a court.
             4934          Section 97. Section 61-2f-409 , which is renumbered from Section 61-2-18 is
             4935      renumbered and amended to read:
             4936           [61-2-18].     61-2f-409. Actions for recovery of compensation restricted.
             4937          (1) [No] A person may not bring or maintain an action in any court of this state for the
             4938      recovery of a commission, fee, or compensation for any act done or service rendered which is
             4939      prohibited under this chapter to other than [licensed] principal brokers, unless the person was
             4940      [duly] licensed as a principal broker at the time of the doing of the act or rendering the service.
             4941          (2) [No] (a) A sales agent or associate broker may not sue in [his] that individual's
             4942      own name for the recovery of a fee, commission, or compensation for services as a sales agent
             4943      or associate broker unless the action is against the principal broker with whom [he] the sales
             4944      agent or associate broker is or was [licensed. Any] affiliated.
             4945          (b) An action for the recovery of a fee, commission, or other compensation may only
             4946      be instituted and brought by the principal broker with whom [the] a sales agent or associate
             4947      broker is affiliated.
             4948          Section 98. Section 61-2f-501 , which is renumbered from Section 61-2a-1 is
             4949      renumbered and amended to read:
             4950     
Part 5. Real Estate Education, Research, and Recovery Fund Act

             4951           [61-2a-1].     61-2f-501. Title.
             4952          This [act shall be known and may be cited] part is known as the "Real Estate Education,
             4953      Research, and Recovery Fund Act."
             4954          Section 99. Section 61-2f-502 , which is renumbered from Section 61-2a-2 is


             4955      renumbered and amended to read:
             4956           [61-2a-2].     61-2f-502. Definitions.
             4957          [(1) The purposes of this chapter are as follows:]
             4958          [(a) (i) This chapter creates the Real Estate Education, Research, and Recovery Fund to
             4959      reimburse the public out of the fund for damages up to $15,000 caused by a real estate licensee
             4960      in a real estate transaction as provided in Subsection 61-2a-5 (1).]
             4961          [(ii) This chapter applies to damages caused by an individual licensee. Reimbursement
             4962      may not be made for a judgment against a corporation, partnership, association, or other legal
             4963      entity.]
             4964          [(b) This chapter provides revenue for improving the real estate profession through
             4965      education and research with the goal of making licensees more responsible to the public.]
             4966          [(2) For purposes of this chapter:]
             4967          [(a) "Commission" means the Real Estate Commission.]
             4968          [(b) "Division" means the Division of Real Estate.]
             4969          For purposes of this part:
             4970          (1) "Civil judgment" means a judgment in a civil action that:
             4971          (a) is awarded in an action brought against a real estate licensee on the basis of fraud,
             4972      misrepresentation, or deceit in a real estate transaction; and
             4973          (b) awards actual damages.
             4974          (2) "Criminal restitution judgment" means a judgment that, in accordance with the
             4975      Utah Code of Criminal Procedure, orders criminal restitution to a person and against a real
             4976      estate licensee for a criminal offense involving fraud, misrepresentation, or deceit in a real
             4977      estate transaction.
             4978          (3) "Final judgment" means one of the following judgments upon termination of the
             4979      proceedings related to the judgment, including appeals:
             4980          (a) a civil judgment; or
             4981          (b) a criminal restitution judgment.
             4982          [(c)] (4) "Fund" means the Real Estate Education, Research, and Recovery Fund
             4983      created in Section [ 61-2a-3 ] 61-2f-503 .
             4984          [(d) "Judgment" includes a criminal restitution judgment award.]
             4985          Section 100. Section 61-2f-503 , which is renumbered from Section 61-2a-3 is


             4986      renumbered and amended to read:
             4987           [61-2a-3].     61-2f-503. Education, Research, and Recovery Fund.
             4988          (1) (a) There is created a restricted special revenue fund [to be] known as the "Real
             4989      Estate Education, Research, and Recovery Fund."
             4990          (b) The actual interest earned on the fund shall be deposited into the fund.
             4991          [(2) At the commencement of each fiscal year, $100,000 shall be available in the fund
             4992      for satisfying judgments rendered against a person licensed under Title 61, Chapter 2, Division
             4993      of Real Estate.]
             4994          (2) The money in the fund includes:
             4995          (a) a fee imposed under Section 61-2f-505 ; and
             4996          (b) interest described in Subsection (1)(b).
             4997          (3) The division shall administer the fund to:
             4998          (a) reimburse the public for damages caused in a real estate transaction by an
             4999      individual licensed under this chapter; and
             5000          (b) in accordance with Section 61-2f-504 :
             5001          (i) investigate violations of this chapter related to fraud, misrepresentation, or deceit; or
             5002          (ii) provide revenue for improving the real estate profession through education and
             5003      research with the goal of making licensees more responsible to the public.
             5004          (4) This part applies to damages caused by an individual licensee. Reimbursement
             5005      may not be made for a final judgment against an entity.
             5006          (5) At the beginning of each fiscal year, the division shall make available $100,000 in
             5007      the fund to satisfy final judgments rendered against a person licensed under this chapter.
             5008          Section 101. Section 61-2f-504 , which is renumbered from Section 61-2a-12 is
             5009      renumbered and amended to read:
             5010           [61-2a-12].     61-2f-504. Use of money.
             5011          (1) Money accumulated in the fund in excess of $100,000 shall be set aside and
             5012      segregated to be used by the division to:
             5013          (a) investigate violations of this chapter [or Chapter 2, Division of Real Estate,] related
             5014      to fraud, misrepresentation, or deceit; and
             5015          (b) advance education and research in the field of real estate.
             5016          (2) The division may [only] use the [excess monies] money described in Subsection (1)


             5017      only in a manner consistent with Subsection (1), including for [courses] a course:
             5018          (a) sponsored by the division;
             5019          (b) offered by the division in conjunction with any university or college in the state; or
             5020          (c) provided for by contracting for a particular research project in the field of real estate
             5021      for the state.
             5022          Section 102. Section 61-2f-505 , which is renumbered from Section 61-2a-4 is
             5023      renumbered and amended to read:
             5024           [61-2a-4].     61-2f-505. Additional license fee.
             5025          (1) [A person] An individual who applies for or renews a [real estate] principal broker
             5026      or associate broker license shall pay, in addition to the application or renewal fee, a reasonable
             5027      annual fee of up to $18, as determined by the division with the concurrence of the commission.
             5028          (2) [A person] An individual who applies for or renews a [real estate] sales agent
             5029      license shall pay in addition to the application or renewal fee a reasonable annual fee of up to
             5030      $12, as determined by the division with the concurrence of the commission.
             5031          (3) Notwithstanding Section 13-1-2 , the additional fees under this section shall be paid
             5032      into the fund [to be used for the purposes of this chapter].
             5033          Section 103. Section 61-2f-506 , which is renumbered from Section 61-2a-5 is
             5034      renumbered and amended to read:
             5035           [61-2a-5].     61-2f-506. Procedure to make a claim against the fund.
             5036          (1) [(a) Except as provided in Subsection (6), a] A person may bring a claim against
             5037      the fund [only if the person sends] if:
             5038          (a) the person obtains a final judgment;
             5039          (b) the person complies with the requirements under this part;
             5040          (c) the person is not complicit in the fraud, misrepresentation, or deceit that is the basis
             5041      of the claim; and
             5042          (d) the final judgment that is the basis for the claim:
             5043          (i) has not been discharged in bankruptcy; and
             5044          (ii) when a bankruptcy proceeding is open or commenced during the pendency of the
             5045      claim, the person obtains an order from the bankruptcy court declaring the final judgment and
             5046      related debt to be nondischargeable.
             5047          (2) (a) A person may not bring a claim against the fund for money owed under a civil


             5048      judgment unless, within 10 business days of the day on which the person brings the civil action
             5049      that results in the civil judgment, the person sends to the division a signed notification [to the
             5050      division at the time the person files an action against a real estate licensee] alleging fraud,
             5051      misrepresentation, or deceit by a real estate licensee.
             5052          (b) Within 30 days [of receipt of the notice,] of the day on which the division receives
             5053      a notice under Subsection (1), the division has an unconditional right to intervene in the civil
             5054      action.
             5055          [(c) If the person making a claim against the fund obtains a final judgment in a court of
             5056      competent jurisdiction in this state against the licensee based upon fraud, misrepresentation, or
             5057      deceit in a real estate transaction, the person making the claim may, upon termination of all
             5058      proceedings including appeals, file]
             5059          (3) (a) After obtaining a final judgment, to file a claim against the fund, a person shall:
             5060          (i) file a verified petition in the court where the final judgment [was] is entered [for]
             5061      seeking an order directing payment from the fund [for the] of an amount equal to the
             5062      uncollected actual damages [included in the judgment and unpaid.] owed under the final
             5063      judgment that are unpaid;
             5064          (ii) serve a copy of the verified petition described in Subsection (3)(a)(i) on the
             5065      division; and
             5066          (iii) file a copy of the affidavit of service of the verified petition with the court.
             5067          [(d)] (b) Recovery from the fund may not include:
             5068          (i) punitive damages;
             5069          (ii) attorney fees;
             5070          (iii) interest; or
             5071          (iv) court costs.
             5072          [(e)] (c) Regardless of the number of claimants or parcels of real estate involved in a
             5073      real estate transaction, the liability of the fund may not exceed:
             5074          (i) $15,000 for a single transaction; and
             5075          (ii) $50,000 for one licensee.
             5076          [(2) A copy of the petition shall be served upon the division, and an affidavit of the
             5077      service shall be filed with the court.]
             5078          [(3) The] (4) A court shall conduct a hearing on [the] a petition [within 30 days after


             5079      service. The petitioner shall recover from the fund only if the petitioner shows all of the
             5080      following:] filed under Subsection (3) as scheduled by the court.
             5081          (5) Subject to Subsection (6), a court may order payment from the fund under this
             5082      section only if the person who files the petition shows that the person:
             5083          (a) [the petitioner] is not:
             5084          (i) in the case of a civil judgment, the spouse of the judgment debtor [or the];
             5085          (ii) in the case of a criminal judgment, the spouse of the criminal defendant; or
             5086          (iii) a personal representative of [the spouse] an individual described in Subsection
             5087      (5)(a)(i) or (ii);
             5088          (b) [the petitioner has complied] is in compliance with this chapter;
             5089          (c) [the petitioner has obtained] is owed damages under a final judgment that:
             5090          (i) is issued by the court in the manner prescribed under this section[, indicating]; and
             5091          (ii) indicates the amount of the final judgment awarded;
             5092          (d) [the petitioner] has proved the amount still owing on the final judgment [at] on the
             5093      date [of] the petition is filed;
             5094          (e) (i) (A) [the petitioner] has had a writ of execution issued upon the final judgment[,];
             5095      and
             5096          (B) has received a return made by the officer executing the writ [has made a return]
             5097      showing that no property subject to execution in satisfaction of the final judgment could be
             5098      found; or
             5099          [(f)] (ii) if execution is levied against the property of the judgment debtor or criminal
             5100      defendant:
             5101          [(i) that the amount realized was insufficient]
             5102          (A) has not realized an amount sufficient to satisfy the final judgment; and
             5103          [(ii) the amount realized and the]
             5104          (B) is owed a specific balance remaining on the final judgment after application of the
             5105      amount realized;
             5106          [(g) the petitioner] (f) has made reasonable searches and inquiries to ascertain whether
             5107      the judgment debtor or criminal defendant has any interest in property, real or personal, that
             5108      may satisfy the final judgment; and
             5109          [(h) the petitioner] (g) has exercised reasonable diligence to secure payment of the


             5110      final judgment from the assets of the judgment debtor or criminal defendant.
             5111          [(4)] (6) If [the petitioner] a person satisfies the court under Subsection (5) that it is not
             5112      practicable for the petitioner to comply with one or more of the requirements enumerated in
             5113      Subsections [(3)] (5)(e) through [(h)] (g), the court may waive those requirements.
             5114          [(5) (a) A judgment that is the basis for a claim against the fund may not have been
             5115      discharged in bankruptcy.]
             5116          [(b) In the case of a bankruptcy proceeding that is still open or that is commenced
             5117      during the pendency of the claim, the claimant shall obtain an order from the bankruptcy court
             5118      declaring the judgment and debt to be nondischargeable.]
             5119          [(6) A person may not bring a claim against the fund if the person is substantially
             5120      complicit in the fraud, misrepresentation, or deceit that is the basis of the claim.]
             5121          Section 104. Section 61-2f-507 , which is renumbered from Section 61-2a-6 is
             5122      renumbered and amended to read:
             5123           [61-2a-6].     61-2f-507. Division authority to act upon receipt of petition.
             5124          [(1) Upon receipt of a petition as required by Section 61-2a-5 , the division may answer,
             5125      initiate review proceedings of its own, or]
             5126          (1) When the division is served a petition under Section 61-2f-506 , the division may:
             5127          (a) file an answer to the petition in the court;
             5128          (b) initiate a review proceeding conducted by the division; or
             5129          (c) appear in any proceeding in the name of the defendant to the action or on behalf of
             5130      the fund.
             5131          [(2) The division may, subject to court approval, compromise a claim based upon the
             5132      application of a petitioner.]
             5133          (2) The division may settle a claim against the fund if:
             5134          (a) the person who brings the claim requests a settlement; and
             5135          (b) the court in which the petition is filed approves the settlement.
             5136          Section 105. Section 61-2f-508 , which is renumbered from Section 61-2a-7 is
             5137      renumbered and amended to read:
             5138           [61-2a-7].     61-2f-508. Court determination and order.
             5139          If [the] a court determines that [a claim should be levied against that portion of the fund
             5140      allocated for the purpose of carrying out the provisions of this chapter,] the fund should pay a


             5141      claim under this part, in its order the court shall [enter an order directed to] direct the division
             5142      [requiring payment from the fund of] to pay from the fund that portion of the [petitioner's] final
             5143      judgment that is payable from the fund [pursuant to Section 61-2a-5 ] in accordance with
             5144      Section 61-2f-506 .
             5145          Section 106. Section 61-2f-509 , which is renumbered from Section 61-2a-8 is
             5146      renumbered and amended to read:
             5147           [61-2a-8].     61-2f-509. Insufficient funds to satisfy judgments -- Procedure and
             5148      interest.
             5149          If [the] money deposited in the fund and allotted for satisfying [judgments against
             5150      licensees] a final judgment against a real estate licensee is insufficient to satisfy [any
             5151      authorized claim for payment, the division shall,] an order issued in accordance with Section
             5152      61-2f-508 , when sufficient money [has been] is deposited in the fund, the division shall:
             5153          (1) satisfy the unpaid claims in the order that [they were] the unpaid claims are
             5154      originally filed[, together with]; and
             5155          (2) pay with the claim accumulated interest at the rate of 8% per annum.
             5156          Section 107. Section 61-2f-510 , which is renumbered from Section 61-2a-9 is
             5157      renumbered and amended to read:
             5158           [61-2a-9].     61-2f-510. Division subrogated to judgment creditor -- Authority to
             5159      revoke license.
             5160          (1) (a) If the division [makes payment from the fund to a judgment creditor, the
             5161      division shall be] pays a claim against the fund in accordance with this chapter, the division is
             5162      subrogated to the rights of the [judgment creditor] person who is paid the claim for the amounts
             5163      paid out of the fund [and any amount and].
             5164          (b) The division shall deposit in the fund any amount and interest recovered by the
             5165      division [shall be deposited in the fund] under this part.
             5166          (2) (a) The license of a real estate licensee for whom payment from the fund is made
             5167      under this chapter shall be automatically revoked.
             5168          (b) [A licensee] A person whose real estate license is revoked under Subsection (2)(a)
             5169      may not apply for a new license [until] under this chapter until the person pays in full:
             5170          (i) the amount paid [out on the licensee's account, plus] by the fund for a claim that is
             5171      based on a final judgment against the person; and


             5172          (ii) interest at a rate determined by the division with the concurrence of the
             5173      commission[, is repaid in full].
             5174          Section 108. Section 61-2f-511 , which is renumbered from Section 61-2a-11 is
             5175      renumbered and amended to read:
             5176           [61-2a-11].     61-2f-511. Authority to take disciplinary action.
             5177          (1) [Nothing contained in this chapter shall] This part does not limit the authority of
             5178      the director of the division to take disciplinary action against a real estate licensee for a
             5179      violation of [Chapter 2, Division of Real Estate,] this chapter or of the rules of the commission
             5180      and division.
             5181          (2) [The repayment in full of all obligations to the fund by a licensee] A real estate
             5182      licensee's payment of all the obligations of the real estate licensee to the fund does not nullify
             5183      or modify the effect of any other disciplinary proceeding brought pursuant to [Chapter 2,
             5184      Division of Real Estate,] this chapter or the rules of the commission.
             5185          Section 109. Section 61-2f-512 , which is renumbered from Section 61-2a-10 is
             5186      renumbered and amended to read:
             5187           [61-2a-10].     61-2f-512. Failure to comply with provisions constitutes a waiver.
             5188          [The failure of any person] A person's failure to comply with [the provisions of this
             5189      chapter shall constitute] this part constitutes a waiver of any [rights provided under it] right
             5190      under this part.
             5191          Section 110. Section 63G-2-302 is amended to read:
             5192           63G-2-302. Private records.
             5193          (1) The following records are private:
             5194          (a) records concerning an individual's eligibility for unemployment insurance benefits,
             5195      social services, welfare benefits, or the determination of benefit levels;
             5196          (b) records containing data on individuals describing medical history, diagnosis,
             5197      condition, treatment, evaluation, or similar medical data;
             5198          (c) records of publicly funded libraries that when examined alone or with other records
             5199      identify a patron;
             5200          (d) records received or generated for a Senate or House Ethics Committee concerning
             5201      any alleged violation of the rules on legislative ethics, prior to the meeting, and after the
             5202      meeting, if the ethics committee meeting was closed to the public;


             5203          (e) records received or generated for a Senate confirmation committee concerning
             5204      character, professional competence, or physical or mental health of an individual:
             5205          (i) if prior to the meeting, the chair of the committee determines release of the records:
             5206          (A) reasonably could be expected to interfere with the investigation undertaken by the
             5207      committee; or
             5208          (B) would create a danger of depriving a person of a right to a fair proceeding or
             5209      impartial hearing; and
             5210          (ii) after the meeting, if the meeting was closed to the public;
             5211          (f) employment records concerning a current or former employee of, or applicant for
             5212      employment with, a governmental entity that would disclose that individual's home address,
             5213      home telephone number, Social Security number, insurance coverage, marital status, or payroll
             5214      deductions;
             5215          (g) records or parts of records under Section 63G-2-303 that a current or former
             5216      employee identifies as private according to the requirements of that section;
             5217          (h) that part of a record indicating a person's Social Security number or federal
             5218      employer identification number if provided under Section 31A-23a-104 , 31A-25-202 ,
             5219      31A-26-202 , 58-1-301 , 61-1-4 , or [ 61-2-6 ] 61-2f-203 ;
             5220          (i) that part of a voter registration record identifying a voter's driver license or
             5221      identification card number, Social Security number, or last four digits of the Social Security
             5222      number;
             5223          (j) a record that:
             5224          (i) contains information about an individual;
             5225          (ii) is voluntarily provided by the individual; and
             5226          (iii) goes into an electronic database that:
             5227          (A) is designated by and administered under the authority of the Chief Information
             5228      Officer; and
             5229          (B) acts as a repository of information about the individual that can be electronically
             5230      retrieved and used to facilitate the individual's online interaction with a state agency;
             5231          (k) information provided to the Commissioner of Insurance under:
             5232          (i) Subsection 31A-23a-115 (2)(a);
             5233          (ii) Subsection 31A-23a-302 (3); or


             5234          (iii) Subsection 31A-26-210 (3);
             5235          (l) information obtained through a criminal background check under Title 11, Chapter
             5236      40, Criminal Background Checks by Political Subdivisions Operating Water Systems;
             5237          (m) information provided by an offender that is:
             5238          (i) required by the registration requirements of Section 77-27-21.5 ; and
             5239          (ii) not required to be made available to the public under Subsection 77-27-21.5 (27);
             5240      and
             5241          (n) a statement and any supporting documentation filed with the attorney general in
             5242      accordance with Section 34-45-107 , if the federal law or action supporting the filing involves
             5243      homeland security.
             5244          (2) The following records are private if properly classified by a governmental entity:
             5245          (a) records concerning a current or former employee of, or applicant for employment
             5246      with a governmental entity, including performance evaluations and personal status information
             5247      such as race, religion, or disabilities, but not including records that are public under Subsection
             5248      63G-2-301 (2)(b) or 63G-2-301 (3)(o), or private under Subsection (1)(b);
             5249          (b) records describing an individual's finances, except that the following are public:
             5250          (i) records described in Subsection 63G-2-301 (2);
             5251          (ii) information provided to the governmental entity for the purpose of complying with
             5252      a financial assurance requirement; or
             5253          (iii) records that must be disclosed in accordance with another statute;
             5254          (c) records of independent state agencies if the disclosure of those records would
             5255      conflict with the fiduciary obligations of the agency;
             5256          (d) other records containing data on individuals the disclosure of which constitutes a
             5257      clearly unwarranted invasion of personal privacy;
             5258          (e) records provided by the United States or by a government entity outside the state
             5259      that are given with the requirement that the records be managed as private records, if the
             5260      providing entity states in writing that the record would not be subject to public disclosure if
             5261      retained by it; and
             5262          (f) any portion of a record in the custody of the Division of Aging and Adult Services,
             5263      created in Section 62A-3-102 , that may disclose, or lead to the discovery of, the identity of a
             5264      person who made a report of alleged abuse, neglect, or exploitation of a vulnerable adult.


             5265          (3) (a) As used in this Subsection (3), "medical records" means medical reports,
             5266      records, statements, history, diagnosis, condition, treatment, and evaluation.
             5267          (b) Medical records in the possession of the University of Utah Hospital, its clinics,
             5268      doctors, or affiliated entities are not private records or controlled records under Section
             5269      63G-2-304 when the records are sought:
             5270          (i) in connection with any legal or administrative proceeding in which the patient's
             5271      physical, mental, or emotional condition is an element of any claim or defense; or
             5272          (ii) after a patient's death, in any legal or administrative proceeding in which any party
             5273      relies upon the condition as an element of the claim or defense.
             5274          (c) Medical records are subject to production in a legal or administrative proceeding
             5275      according to state or federal statutes or rules of procedure and evidence as if the medical
             5276      records were in the possession of a nongovernmental medical care provider.
             5277          Section 111. Section 63J-1-602 is amended to read:
             5278           63J-1-602. Nonlapsing accounts and funds.
             5279          (1) The following revenue collections, appropriations from a fund or account, and
             5280      appropriations to a program are nonlapsing:
             5281          (a) appropriations made to the Legislature and its committees;
             5282          (b) funds collected by the grain grading program, as provided in Section 4-2-2 ;
             5283          (c) the Salinity Offset Fund created in Section 4-2-8.5 ;
             5284          (d) the Invasive Species Mitigation Fund created in Section 4-2-8.7 ;
             5285          (e) funds collected by pesticide dealer license registration fees, as provided in Section
             5286      4-14-3 ;
             5287          (f) funds collected by pesticide applicator business registration fees, as provided in
             5288      Section 4-14-13 ;
             5289          (g) the Rangeland Improvement Fund created in Section 4-20-2 ;
             5290          (h) funds deposited as dedicated credits under the Insect Infestation Emergency Control
             5291      Act, as provided in Section 4-35-6 ;
             5292          (i) the Percent-for-Art Program created in Section 9-6-404 ;
             5293          (j) the Centennial History Fund created in Section 9-8-604 ;
             5294          (k) the Uintah Basin Revitalization Fund, as provided in Section 9-10-108 ;
             5295          (l) the Navajo Revitalization Fund created in Section 9-11-104 ;


             5296          (m) the LeRay McAllister Critical Land Conservation Program created in Section
             5297      11-38-301 ;
             5298          (n) the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 ;
             5299          (o) fees deposited as dedicated credits for hazardous waste plan reviews, as provided in
             5300      Section 19-6-120 ;
             5301          (p) an appropriation made to the Division of Wildlife Resources for the appraisal and
             5302      purchase of lands under the Pelican Management Act, as provided in Section 23-21a-6 ;
             5303          (q) award monies under the Crime Reduction Assistance Program, as provided under
             5304      Section 24-1-19 ;
             5305          (r) funds collected from the emergency medical services grant program, as provided in
             5306      Section 26-8a-207 ;
             5307          (s) fees and other funding available to purchase training equipment and to administer
             5308      tests and conduct quality assurance reviews, as provided in Section 26-8a-208 ;
             5309          (t) funds collected as a result of a sanction under Section 1919 of Title XIX of the
             5310      federal Social Security Act, as provided in Section 26-18-3 ;
             5311          (u) the Utah Health Care Workforce Financial Assistance Program created in Section
             5312      26-46-102 ;
             5313          (v) monies collected from subscription fees for publications prepared or distributed by
             5314      the insurance commissioner, as provided in Section 31A-2-208 ;
             5315          (w) monies received by the Insurance Department for administering, investigating
             5316      under, and enforcing the Insurance Fraud Act, as provided in Section 31A-31-108 ;
             5317          (x) certain monies received for penalties paid under the Insurance Fraud Act, as
             5318      provided in Section 31A-31-109 ;
             5319          (y) the fund for operating the state's Federal Health Care Tax Credit Program, as
             5320      provided in Section 31A-38-104 ;
             5321          (z) certain funds in the Department of Workforce Services' program for the education,
             5322      training, and transitional counseling of displaced homemakers, as provided in Section
             5323      35A-3-114 ;
             5324          (aa) the Employment Security Administration Fund created in Section 35A-4-505 ;
             5325          (bb) the Special Administrative Expense Fund created in Section 35A-4-506 ;
             5326          (cc) funding for a new program or agency that is designated as nonlapsing under


             5327      Section 36-24-101 ;
             5328          (dd) the Oil and Gas Conservation Account created in Section 40-6-14.5 ;
             5329          (ee) funds available to the State Tax Commission for purchase and distribution of
             5330      license plates and decals, as provided in Section 41-1a-1201 ;
             5331          (ff) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
             5332      provided in Section 41-1a-1221 ;
             5333          (gg) certain fees collected for administering and enforcing the Motor Vehicle Business
             5334      Regulation Act, as provided in Section 41-3-601 ;
             5335          (hh) certain fees for the cost of electronic payments under the Motor Vehicle Business
             5336      Regulation Act, as provided in Section 41-3-604 ;
             5337          (ii) the Off-Highway Access and Education Restricted Account created in Section
             5338      41-22-19.5 ;
             5339          (jj) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
             5340      provided in Section 41-22-36 ;
             5341          (kk) monies collected under the Notaries Public Reform Act, as provided under
             5342      46-1-23 ;
             5343          (ll) certain funds associated with the Law Enforcement Operations Account, as
             5344      provided in Section 51-9-411 ;
             5345          (mm) the Public Safety Honoring Heroes Restricted Account created in Section
             5346      53-1-118 ;
             5347          (nn) funding for the Search and Rescue Financial Assistance Program, as provided in
             5348      Section 53-2-107 ;
             5349          (oo) appropriations made to the Department of Public Safety from the Department of
             5350      Public Safety Restricted Account, as provided in Section 53-3-106 ;
             5351          (pp) appropriations to the Motorcycle Rider Education Program, as provided in Section
             5352      53-3-905 ;
             5353          (qq) fees collected by the State Fire Marshal Division under the Utah Fire Prevention
             5354      and Safety Act, as provided in Section 53-7-314 ;
             5355          (rr) the DNA Specimen Restricted Account created in Section 53-10-407 ;
             5356          (ss) the minimum school program, as provided in Section 53A-17a-105 ;
             5357          (tt) certain funds appropriated from the Uniform School Fund to the State Board of


             5358      Education for new teacher bonus and performance-based compensation plans, as provided in
             5359      Section 53A-17a-148 ;
             5360          (uu) certain funds appropriated from the Uniform School Fund to the State Board of
             5361      Education for implementation of proposals to improve mathematics achievement test scores, as
             5362      provided in Section 53A-17a-152 ;
             5363          (vv) the School Building Revolving Account created in Section 53A-21-401 ;
             5364          (ww) monies received by the State Office of Rehabilitation for the sale of certain
             5365      products or services, as provided in Section 53A-24-105 ;
             5366          (xx) the State Board of Regents, as provided in Section 53B-6-104 ;
             5367          (yy) certain funds appropriated from the General Fund to the State Board of Regents
             5368      for teacher preparation programs, as provided in Section 53B-6-104 ;
             5369          (zz) a certain portion of monies collected for administrative costs under the School
             5370      Institutional Trust Lands Management Act, as provided under Section 53C-3-202 ;
             5371          (aaa) certain surcharges on residence and business telecommunications access lines
             5372      imposed by the Public Service Commission, as provided in Section 54-8b-10 ;
             5373          (bbb) certain fines collected by the Division of Occupational and Professional
             5374      Licensing for violation of unlawful or unprofessional conduct that are used for education and
             5375      enforcement purposes, as provided in Section 58-17b-505 ;
             5376          (ccc) the Nurse Education and Enforcement Fund created in Section 58-31b-103 ;
             5377          (ddd) funding of the controlled substance database, as provided in Section 58-37-7.7 ;
             5378          (eee) the Certified Nurse Midwife Education and Enforcement Fund created in Section
             5379      58-44a-103 ;
             5380          (fff) funding for the building inspector's education program, as provided in Section
             5381      58-56-9 ;
             5382          (ggg) certain fines collected by the Division of Occupational and Professional
             5383      Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
             5384      provided in Section 58-63-103 ;
             5385          (hhh) the Professional Geologist Education and Enforcement Fund created in Section
             5386      58-76-103 ;
             5387          (iii) certain monies in the Water Resources Conservation and Development Fund, as
             5388      provided in Section 59-12-103 ;


             5389          (jjj) funds paid to the Division of Real Estate for the cost of a criminal background
             5390      check for principal broker, associate broker, and sales agent licenses, as provided in Section
             5391      [ 61-2-9 ] 61-2f-204 ;
             5392          (kkk) the Utah Housing Opportunity Restricted Account created in Section [ 61-2-28 ]
             5393      61-2-204 ;
             5394          (lll) funds paid to the Division of Real Estate for the cost of a criminal background
             5395      check for a mortgage loan license, as provided in Section 61-2c-202 ;
             5396          (mmm) funds paid to the Division of Real Estate in relation to examination of records
             5397      in an investigation, as provided in Section 61-2c-401 ;
             5398          (nnn) certain funds donated to the Department of Human Services, as provided in
             5399      Section 62A-1-111 ;
             5400          (ooo) certain funds donated to the Division of Child and Family Services, as provided
             5401      in Section 62A-4a-110 ;
             5402          (ppp) the Mental Health Therapist Grant and Scholarship Program, as provided in
             5403      Section 62A-13-109 ;
             5404          (qqq) assessments for DUI violations that are forwarded to an account created by a
             5405      county treasurer, as provided in Section 62A-15-503 ;
             5406          (rrr) appropriations to the Division of Services for People with Disabilities, as provided
             5407      in Section 62A-5-102 ;
             5408          (sss) certain donations to the Division of Substance Abuse and Mental Health, as
             5409      provided in Section 62A-15-103 ;
             5410          (ttt) certain funds received by the Division of Parks and Recreation from the sale or
             5411      disposal of buffalo, as provided under Section 63-11-19.2 ;
             5412          (uuu) revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
             5413      Park, or Jordan River State Park, as provided under Section 63-11-19.5 ;
             5414          (vvv) revenue for golf user fees at the Green River State Park, as provided under
             5415      Section 63-11-19.6 ;
             5416          (www) the Centennial Nonmotorized Paths and Trail Crossings Program created under
             5417      Section 63-11a-503 ;
             5418          (xxx) the Bonneville Shoreline Trail Program created under Section 63-11a-504 ;
             5419          (yyy) the account for the Utah Geological Survey, as provided in Section 63-73-10 ;


             5420          (zzz) the Risk Management Fund created under Section 63A-4-201 ;
             5421          (aaaa) the Child Welfare Parental Defense Fund created in Section 63A-11-203 ;
             5422          (bbbb) the Constitutional Defense Restricted Account created in Section 63C-4-103 ;
             5423          (cccc) a portion of the funds appropriated to the Utah Seismic Safety Commission, as
             5424      provided in Section 63C-6-104 ;
             5425          (dddd) funding for the Medical Education Program administered by the Medical
             5426      Education Council, as provided in Section 63C-8-102 ;
             5427          (eeee) certain monies payable for commission expenses of the Pete Suazo Utah
             5428      Athletic Commission, as provided under Section 63C-11-301 ;
             5429          (ffff) funds collected for publishing the Division of Administrative Rules' publications,
             5430      as provided in Section 63G-3-402 ;
             5431          (gggg) the appropriation to fund the Governor's Office of Economic Development's
             5432      Enterprise Zone Act, as provided in Section 63M-1-416 ;
             5433          (hhhh) the Tourism Marketing Performance Account, as provided in Section
             5434      63M-1-1406 ;
             5435          (iiii) certain funding for rural development provided to the Office of Rural
             5436      Development in the Governor's Office of Economic Development, as provided in Section
             5437      63M-1-1604 ;
             5438          (jjjj) certain monies in the Development for Disadvantaged Rural Communities
             5439      Restricted Account, as provided in Section 63M-1-2003 ;
             5440          (kkkk) appropriations to the Utah Science Technology and Research Governing
             5441      Authority, created under Section 63M-2-301 , as provided under Section 63M-3-302 ;
             5442          (llll) certain monies in the Rural Broadband Service Fund, as provided in Section
             5443      63M-1-2303 ;
             5444          (mmmm) funds collected from monthly offender supervision fees, as provided in
             5445      Section 64-13-21.2 ;
             5446          (nnnn) funds collected by the housing of state probationary inmates or state parole
             5447      inmates, as provided in Subsection 64-13e-104 (2);
             5448          (oooo) the Sovereign Lands Management account created in Section 65A-5-1 ;
             5449          (pppp) certain forestry and fire control funds utilized by the Division of Forestry, Fire,
             5450      and State Lands, as provided in Section 65A-8-103 ;


             5451          (qqqq) the Department of Human Resource Management user training program, as
             5452      provided in Section 67-19-6 ;
             5453          (rrrr) funds for the University of Utah Poison Control Center program, as provided in
             5454      Section 69-2-5.5 ;
             5455          (ssss) appropriations to the Transportation Corridor Preservation Revolving Loan
             5456      Fund, as provided in Section 72-2-117 ;
             5457          (tttt) appropriations to the Local Transportation Corridor Preservation Fund, as
             5458      provided in Section 72-2-117.5 ;
             5459          (uuuu) appropriations to the Tollway Restricted Special Revenue Fund, as provided in
             5460      Section 77-2-120 ;
             5461          (vvvv) appropriations to the Aeronautics Construction Revolving Loan Fund, as
             5462      provided in Section 77-2-122 ;
             5463          (wwww) appropriations to the State Park Access Highways Improvement Program, as
             5464      provided in Section 72-3-207 ;
             5465          (xxxx) the Traffic Noise Abatement Program created in Section 72-6-112 ;
             5466          (yyyy) certain funds received by the Office of the State Engineer for well drilling fines
             5467      or bonds, as provided in Section 73-3-25 ;
             5468          (zzzz) certain monies appropriated to increase the carrying capacity of the Jordan River
             5469      that are transferred to the Division of Parks and Recreation, as provided in Section 73-10e-1 ;
             5470          (aaaaa) certain fees for the cost of electronic payments under the State Boating Act, as
             5471      provided in Section 73-18-25 ;
             5472          (bbbbb) certain monies appropriated from the Water Resources Conservation and
             5473      Development Fund, as provided in Section 73-23-2 ;
             5474          (ccccc) the Lake Powell Pipeline Project Operation and Maintenance Fund created in
             5475      Section 73-28-404 ;
             5476          (ddddd) certain funds in the Water Development and Flood Mitigation Reserve
             5477      Account, as provided in Section 73-103-1 ;
             5478          (eeeee) certain funds appropriated for compensation for special prosecutors, as
             5479      provided in Section 77-10a-19 ;
             5480          (fffff) the Indigent Aggravated Murder Defense Trust Fund created in Section
             5481      77-32-601 ;


             5482          (ggggg) the Indigent Felony Defense Trust Fund created in Section 77-32-701 ;
             5483          (hhhhh) funds donated or paid to a juvenile court by private sources, as provided in
             5484      Subsection 78A-6-203 (1)(c);
             5485          (iiiii) a state rehabilitative employment program, as provided in Section 78A-6-210 ;
             5486      and
             5487          (jjjjj) fees from the issuance and renewal of licenses for certified court interpreters, as
             5488      provided in Section 78B-1-146 .
             5489          (2) No revenue collection, appropriation from a fund or account, or appropriation to a
             5490      program may be treated as nonlapsing unless:
             5491          (a) it is expressly referenced by this section;
             5492          (b) it is designated in a condition of appropriation in the appropriations bill; or
             5493          (c) nonlapsing authority is granted under Section 63J-1-603 .
             5494          (3) Each legislative appropriations subcommittee shall review the accounts and funds
             5495      that have been granted nonlapsing authority under this section or Section 63J-1-603 .
             5496          Section 112. Section 70D-3-102 is amended to read:
             5497           70D-3-102. Definitions.
             5498          As used in this chapter:
             5499          (1) "Administrative or clerical tasks" means:
             5500          (a) the receipt, collection, and distribution of information common for the process or
             5501      underwriting of a loan in the mortgage industry; and
             5502          (b) a communication with a consumer to obtain information necessary for the
             5503      processing or underwriting of a residential mortgage loan.
             5504          (2) "Affiliate" shall be defined by the commissioner by rule made in accordance with
             5505      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             5506          (3) "Applicant" means an individual applying for a license under this chapter.
             5507          (4) "Approved examination provider" means a person approved by the nationwide
             5508      database as an approved test provider.
             5509          (5) "Business as a loan originator" means for compensation or in the expectation of
             5510      compensation to engage in an act that makes an individual a loan originator.
             5511          (6) "Clerical or support duties" includes after the receipt of an application for a
             5512      residential mortgage loan:


             5513          (a) the receipt, collection, distribution, and analysis of information common for the
             5514      processing or underwriting of a residential mortgage loan; and
             5515          (b) communicating with a consumer to obtain the information necessary for the
             5516      processing or underwriting of the residential mortgage loan, to the extent that the
             5517      communication does not include:
             5518          (i) offering or negotiating a residential mortgage loan rate or term; or
             5519          (ii) counseling a consumer about a residential mortgage loan rate or term.
             5520          (7) "Compensation" means anything of economic value that is paid, loaned, granted,
             5521      given, donated, or transferred to an individual or entity for or in consideration of:
             5522          (a) services;
             5523          (b) personal or real property; or
             5524          (c) another thing of value.
             5525          (8) "Continuing education" means education taken by an individual licensed under this
             5526      chapter in order to meet the education requirements imposed by Section 70D-3-303 to renew a
             5527      license under this chapter.
             5528          (9) "Covered subsidiary" means a subsidiary that is:
             5529          (a) owned and controlled by a depository institution; and
             5530          (b) regulated by a federal banking agency.
             5531          (10) "Federal banking agency" means:
             5532          (a) the Board of Governors of the Federal Reserve System;
             5533          (b) the Comptroller of the Currency;
             5534          (c) the Director of the Office of Thrift Supervision;
             5535          (d) the National Credit Union Administration; or
             5536          (e) the Federal Deposit Insurance Corporation.
             5537          (11) "Licensee" means an individual licensed under this chapter.
             5538          (12) (a) Except as provided in Subsection (12)(b), "loan originator" means an
             5539      individual who for compensation or in the expectation of compensation:
             5540          (i) takes a residential mortgage loan application; or
             5541          (ii) offers or negotiates a term of a residential mortgage loan.
             5542          (b) "Loan originator" does not include:
             5543          (i) an individual who is engaged solely as a loan processor or underwriter;


             5544          (ii) unless compensated by a lender, broker, other loan originator, or an agent of a
             5545      lender, broker, or other loan originator, a person who:
             5546          (A) only performs real estate brokerage activities; and
             5547          (B) is licensed under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate
             5548      Licensing and Practices Act;
             5549          (iii) a person who is solely involved in extension of credit relating to a timeshare plan,
             5550      as defined in 11 U.S.C. Sec. 101(53D); or
             5551          (iv) an attorney licensed to practice law in this state who, in the course of the attorney's
             5552      practice as an attorney, assists a person in obtaining a residential mortgage loan.
             5553          (13) "Loan processor or underwriter" means an individual who as an employee
             5554      performs clerical or support duties:
             5555          (a) at the direction of and subject to the supervision and instruction of:
             5556          (i) a licensee; or
             5557          (ii) a registered loan originator; and
             5558          (b) as an employee of:
             5559          (i) the licensee; or
             5560          (ii) a registered loan originator.
             5561          (14) "Nationwide database" means the Nationwide Mortgage Licensing System and
             5562      Registry, authorized under Secure and Fair Enforcement for Mortgage Licensing, 12 U.S.C.
             5563      Sec. 5101, et seq.
             5564          (15) "Nontraditional mortgage product" means a mortgage product other than a 30-year
             5565      fixed rate mortgage.
             5566          (16) "Owned and controlled by a depository institution" may be defined by rule made
             5567      by the commissioner in accordance with Title 63G, Chapter 3, Utah Administrative
             5568      Rulemaking Act.
             5569          (17) "Prelicensing education" means education taken by an individual seeking to be
             5570      licensed under this chapter in order to meet the education requirements imposed by Section
             5571      70D-3-301 for an individual to obtain a license under this chapter.
             5572          (18) "Registered loan originator" means an individual who:
             5573          (a) engages in an act as a loan originator only as an employee of:
             5574          (i) a depository institution;


             5575          (ii) a covered subsidiary; or
             5576          (iii) an institution regulated by the Farm Credit Administration; and
             5577          (b) is registered with, and maintains a unique identifier through, the nationwide
             5578      database.
             5579          (19) (a) Subject to Subsection (19)(b), "residential mortgage loan" means:
             5580          (i) a mortgage loan; or
             5581          (ii) a loan that is:
             5582          (A) secured by a mortgage; and
             5583          (B) subject to Title 70C, Utah Consumer Credit Code.
             5584          (b) A loan described in Subsection (19)(a) is a "residential mortgage loan" only if the
             5585      mortgage securing the loan is on:
             5586          (i) a dwelling located in the state; or
             5587          (ii) real property located in the state, upon which is constructed or intended to be
             5588      constructed a dwelling.
             5589          (20) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
             5590          Section 113. Section 72-5-116 is amended to read:
             5591           72-5-116. Exemption from state licensure.
             5592          In accordance with Section [ 61-2-3 ] 61-2f-202 , an employee or authorized agent
             5593      working under the oversight of the department when engaging in an act on behalf of the
             5594      department related to one or more of the following is exempt from licensure under Title 61,
             5595      Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and Practices Act:
             5596          (1) acquiring real [property] estate pursuant to Section 72-5-103 ;
             5597          (2) disposing of real [property] estate pursuant to Section 72-5-111 ;
             5598          (3) providing services that constitute property management, as defined in Section
             5599      [ 61-2-2 ] 61-2f-102 ; or
             5600          (4) leasing of real [property] estate.
             5601          Section 114. Repealer.
             5602          This bill repeals:
             5603          Section 61-2-4, One act for compensation qualifies person as broker or sales agent.
             5604          Section 61-2b-11, Curriculum to be determined by board.
             5605          Section 61-2b-16, Certification and licensing examinations.


             5606          Section 61-2c-207, Reciprocal licensure.
             5607          Section 61-2c-208, Activation and inactivation of license.
             5608          Section 115. Coordinating H.B. 275 with H.B. 53 -- Technical amendments.
             5609          If this H.B. 275 and H.B. 53, Foreclosure Rescue and Loan Modification Amendments,
             5610      both pass, it is the intent of the Legislature that the Office of Legislative Research and General
             5611      Counsel in preparing the Utah Code database for publication:
             5612          (1) modify Subsection 61-2c-102 (1)(y) as amended in this bill to read as follows:
             5613          "[(v)] (y) (i) Except as provided in Subsection (1)[(v)](y)(ii), "mortgage loan
             5614      originator" means an individual who for compensation or in expectation of compensation:
             5615          (A) (I) takes a residential mortgage loan application; or
             5616          [(B)] (II) offers or negotiates terms of a residential mortgage loan[.] for the purpose of:
             5617          (Aa) a purchase;
             5618          (Bb) a refinance;
             5619          (Cc) a loan modification assistance; or
             5620          (Dd) a foreclosure rescue; and
             5621          (B) is licensed as a mortgage loan originator in accordance with this chapter."; and
             5622          (2) treat the amendments in this bill to Subsections 61-2f-102 (1) and (14) as
             5623      superseding the amendments in H.B. 53 to the corresponding subsections, except that the
             5624      Office of Legislative Research and General Counsel shall correct the internal subsection cites
             5625      in Section 61-2f-102 accordingly.


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