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