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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);