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H.B. 275 Enrolled
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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
15 Estate 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 licensees, 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
39 notify 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 and real estate
44 recovery funds; 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,
130 Chapter 382)
131 61-2-204, (Renumbered from 61-2-28, as last amended by Laws of Utah 2008,
132 Chapters 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,
138 Chapter 257)
139 61-2f-106, (Renumbered from 61-2-22, as last amended by Laws of Utah 1985,
140 Chapter 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,
148 Chapters 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,
156 Chapter 352)
157 61-2f-303, (Renumbered from 61-2-25, as enacted by Laws of Utah 2003, Chapter
158 264)
159 61-2f-304, (Renumbered from 61-2-8, as last amended by Laws of Utah 2000, Chapter
160 86)
161 61-2f-306, (Renumbered from 61-2-20, as last amended by Laws of Utah 2008,
162 Chapter 387)
163 61-2f-307, (Renumbered from 61-2-26, as last amended by Laws of Utah 2008,
164 Chapter 382)
165 61-2f-308, (Renumbered from 61-2-27, as enacted by Laws of Utah 2005, Chapter
166 252)
167 61-2f-401, (Renumbered from 61-2-11, as last amended by Laws of Utah 2009,
168 Chapter 352)
169 61-2f-402, (Renumbered from 61-2-11.5, as last amended by Laws of Utah 2007,
170 Chapter 325)
171 61-2f-403, (Renumbered from 61-2-24, as enacted by Laws of Utah 1996, Chapter
172 102)
173 61-2f-404, (Renumbered from 61-2-12, as last amended by Laws of Utah 2009,
174 Chapter 352)
175 61-2f-405, (Renumbered from 61-2-17, as last amended by Laws of Utah 2009,
176 Chapter 352)
177 61-2f-406, (Renumbered from 61-2-13, as last amended by Laws of Utah 2008,
178 Chapter 387)
179 61-2f-407, (Renumbered from 61-2-21, as last amended by Laws of Utah 2008,
180 Chapters 370, 382, and 387)
181 61-2f-408, (Renumbered from 61-2-13.5, as enacted by Laws of Utah 1997, Chapter
182 232)
183 61-2f-409, (Renumbered from 61-2-18, as last amended by Laws of Utah 1985,
184 Chapter 162)
185 61-2f-501, (Renumbered from 61-2a-1, as enacted by Laws of Utah 1975, Chapter
186 172)
187 61-2f-502, (Renumbered from 61-2a-2, as last amended by Laws of Utah 2009,
188 Chapter 352)
189 61-2f-503, (Renumbered from 61-2a-3, as last amended by Laws of Utah 2009,
190 Chapter 352)
191 61-2f-504, (Renumbered from 61-2a-12, as last amended by Laws of Utah 2009,
192 Chapter 352)
193 61-2f-505, (Renumbered from 61-2a-4, as last amended by Laws of Utah 2009,
194 Chapter 352)
195 61-2f-506, (Renumbered from 61-2a-5, as last amended by Laws of Utah 2009,
196 Chapter 352)
197 61-2f-507, (Renumbered from 61-2a-6, as last amended by Laws of Utah 2009,
198 Chapter 352)
199 61-2f-508, (Renumbered from 61-2a-7, as last amended by Laws of Utah 2009,
200 Chapter 352)
201 61-2f-509, (Renumbered from 61-2a-8, as last amended by Laws of Utah 1983,
202 Chapter 256)
203 61-2f-510, (Renumbered from 61-2a-9, as last amended by Laws of Utah 2009,
204 Chapter 352)
205 61-2f-511, (Renumbered from 61-2a-11, as last amended by Laws of Utah 2009,
206 Chapter 352)
207 61-2f-512, (Renumbered from 61-2a-10, as last amended by Laws of Utah 1983,
208 Chapter 256)
209 REPEALS:
210 61-2-4, as last amended by Laws of Utah 1996, Chapter 102
211 61-2b-11, as last amended by Laws of Utah 1999, Chapter 117
212 61-2b-16, as last amended by Laws of Utah 1999, Chapter 117
213 61-2c-207, as last amended by Laws of Utah 2009, Chapter 372
214 61-2c-208, as last amended by Laws of Utah 2009, Chapters 183 and 372
215 Utah Code Sections Affected by Coordination Clause:
216 61-2c-102, as last amended by Laws of Utah 2009, Chapter 372
217 61-2f-102, Utah Code Annotated 1953
218
219 Be it enacted by the Legislature of the state of Utah:
220 Section 1. Section 10-3-1110 is amended to read:
221 10-3-1110. Exemption from state licensure by Division of Real Estate.
222 In accordance with Section [
223 exempt from licensure under Title 61, Chapter [
224 Licensing and Practices Act:
225 (1) when engaging in an act on behalf of the municipality in accordance with:
226 (a) this title; or
227 (b) Title 11, Cities, Counties, and Local Taxing Units; and
228 (2) if the act described in Subsection (1) is related to one or more of the following:
229 (a) acquiring real [
230 (b) disposing of real [
231 (c) providing services that constitute property management, as defined in Section
232 [
233 (d) leasing real [
234 Section 2. Section 13-25a-111 is amended to read:
235 13-25a-111. Exemptions.
236 Notwithstanding any other provision of this chapter, Sections 13-25a-103 and
237 13-25a-108 do not apply to:
238 (1) a telephone call made for a charitable purpose as defined in Section 13-22-2 ;
239 (2) a charitable solicitation as defined in Section 13-22-2 ; or
240 (3) a person who holds a license or registration:
241 (a) under Title 31A, Insurance Code;
242 (b) issued by the Division of Real Estate established in Section [
243 (c) issued by the National Association of Securities Dealers.
244 Section 3. Section 16-11-2 is amended to read:
245 16-11-2. Definitions.
246 As used in this chapter:
247 (1) "Filed" means the division has received and approved, as to form, a document
248 submitted under the provisions of this chapter, and has marked on the face of the document a
249 stamp or seal indicating the time of day and date of approval, the name of the division, the
250 division director's signature and division seal, or facsimiles of the signature or seal.
251 (2) "Professional corporation" means a corporation organized under this chapter.
252 (3) "Professional service" means the personal service rendered by:
253 (a) a physician, surgeon, or doctor of medicine holding a license under Title 58,
254 Chapter 67, Utah Medical Practice Act, and any subsequent laws regulating the practice of
255 medicine;
256 (b) a doctor of dentistry holding a license under Title 58, Chapter 69, Dentist and
257 Dental Hygienist Practice Act, and any subsequent laws regulating the practice of dentistry;
258 (c) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
259 Utah Osteopathic Medical Practice Act, and any subsequent laws regulating the practice of
260 osteopathy;
261 (d) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
262 Practice Act, and any subsequent laws regulating the practice of chiropractic;
263 (e) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
264 Physician Licensing Act, and any subsequent laws regulating the practice of podiatry;
265 (f) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry
266 Practice Act, and any subsequent laws regulating the practice of optometry;
267 (g) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice
268 Act, and any subsequent laws regulating the practice of veterinary medicine;
269 (h) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
270 and any subsequent laws regulating the practice of architecture;
271 (i) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
272 Accountant Licensing Act, and any subsequent laws regulating the practice of public
273 accounting;
274 (j) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician
275 Practice Act, and any subsequent laws regulating the practice of naturopathy;
276 (k) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice
277 Act, and any subsequent laws regulating the practice of pharmacy;
278 (l) an attorney granted the authority to practice law by:
279 (i) the Utah Supreme Court; or
280 (ii) the Supreme Court, other court, agency, instrumentality, or regulating board that
281 licenses or regulates the authority to practice law in any state or territory of the United States
282 other than Utah;
283 (m) a professional engineer registered under Title 58, Chapter 22, Professional
284 Engineers and Professional Land Surveyors Licensing Act;
285 (n) a [
286 holding a license under Title 61, Chapter [
287 and Practices Act, and any subsequent laws regulating the selling, exchanging, purchasing,
288 renting, or leasing of real estate;
289 (o) a psychologist holding a license under Title 58, Chapter 61, Psychologist
290 Licensing Act, and any subsequent laws regulating the practice of psychology;
291 (p) a clinical or certified social worker holding a license under Title 58, Chapter 60,
292 Part 2, Social Worker Licensing Act, and any subsequent laws regulating the practice of social
293 work;
294 (q) a physical therapist holding a license under Title 58, Chapter 24b, Physical
295 Therapy Practice Act, and any subsequent laws regulating the practice of physical therapy;
296 (r) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
297 Chapter 44a, Nurse Midwife Practice Act; [
298 (s) a landscape architect licensed under Title 58, Chapter 53, Landscape Architects
299 Licensing Act, and any subsequent laws regulating landscape architects[
300 (t) an individual licensed, certified, or registered under Title 61, Chapter 2b, Real
301 Estate Appraiser Licensing and Certification Act, and any subsequent laws regulating the
302 practice of appraising real estate.
303 (4) "Regulating board" means the board that is charged with the licensing and
304 regulation of the practice of the profession which the professional corporation is organized to
305 render. The definitions of Title 16, Chapter 10a, Utah Revised Business Corporation Act,
306 apply to this chapter unless the context clearly indicates that a different meaning is intended.
307 Section 4. Section 17-50-106 is amended to read:
308 17-50-106. Exemption from state licensure by Division of Real Estate.
309 In accordance with Section [
310 from licensure under Title 61, Chapter [
311 and Practices Act:
312 (1) when engaging in an act on behalf of the county in accordance with:
313 (a) this title; or
314 (b) Title 11, Cities, Counties, and Local Taxing Units; and
315 (2) if the act described in Subsection (1) is related to one or more of the following:
316 (a) acquiring real [
317 (b) disposing of real [
318 (c) providing services that constitute property management, as defined in Section
319 [
320 (d) leasing real [
321 Section 5. Section 31A-2-402 is amended to read:
322 31A-2-402. Definitions.
323 As used in this part:
324 (1) "Commission" means the Title and Escrow Commission created in Section
325 31A-2-403 .
326 (2) "Concurrence" means the entities given a concurring role must jointly agree for the
327 action to be taken.
328 (3) "Dual licensed title licensee" means a title licensee who holds:
329 (a) a producer license as a title licensee; and
330 (b) a license or certificate under:
331 (i) Title 61, Chapter [
332 Practices Act;
333 (ii) Title 61, Chapter 2b, Real Estate Appraiser Licensing and Certification Act; or
334 (iii) Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act.
335 (4) "Real Estate Commission" means the Real Estate Commission created in Section
336 [
337 (5) "Title licensee" means a person licensed under this title as:
338 (a) an agency with a title insurance line of authority;
339 (b) a producer with:
340 (i) a general title insurance line of authority; or
341 (ii) a specific category of authority for title insurance; or
342 (c) a title insurance adjuster.
343 Section 6. Section 34-44-102 is amended to read:
344 34-44-102. Definitions.
345 As used in this chapter:
346 (1) "Business relationship" means an agreement that governs the relationship of
347 principal and sales representative.
348 (2) "Commission" means:
349 (a) compensation:
350 (i) that accrues to a sales representative;
351 (ii) for payment by a principal; and
352 (iii) at a rate expressed as a percentage of the dollar amount of sales, orders, or profits;
353 or
354 (b) any other method of compensation agreed to between a sales representative and a
355 principal including:
356 (i) fees for services; and
357 (ii) a retainer.
358 (3) "Principal" means a person who:
359 (a) engages in any of the following activities with regard to a product or service:
360 (i) manufactures;
361 (ii) produces;
362 (iii) imports;
363 (iv) sells; or
364 (v) distributes;
365 (b) establishes a business relationship with a sales representative to solicit orders for a
366 product or a service described in Subsection (3)(a); and
367 (c) agrees to compensate a sales representative, in whole or in part, by commission.
368 (4) (a) Except as provided in Subsection (4)(b), "sales representative" means a person
369 who enters into a business relationship with a principal:
370 (i) to solicit orders for a product or a service described in Subsection (3)(a); and
371 (ii) under which the person is compensated, in whole or in part, by commission.
372 (b) "Sales representative" does not include:
373 (i) an employee of a principal;
374 (ii) a person licensed under Title 31A, Insurance Code;
375 (iii) a person licensed under Title 41, Chapter 3, Part 2, Licensing;
376 (iv) a person licensed under Title 61, Chapter [
377 Estate Licensing and Practices Act;
378 (v) a person who provides a product or service under a business relationship with a
379 principal that is incident to the purchase or sale of real property; or
380 (vi) a person who places an order or purchases a product or service for that person's
381 own account for resale.
382 (5) "Terminates" or "termination" means the end of a business relationship between a
383 sales representative and a principal, whether by:
384 (a) agreement;
385 (b) expiration of a time period; or
386 (c) exercise of a right of termination by either the principal or the sales representative.
387 Section 7. Section 34A-2-104 is amended to read:
388 34A-2-104. "Employee," "worker," and "operative" defined -- Specific
389 circumstances -- Exemptions.
390 (1) As used in this chapter and Chapter 3, Utah Occupational Disease Act,
391 "employee," "worker," and "operative" mean:
392 (a) (i) an elective or appointive officer and any other person:
393 (A) in the service of:
394 (I) the state;
395 (II) a county, city, or town within the state; or
396 (III) a school district within the state;
397 (B) serving the state, or any county, city, town, or school district under:
398 (I) an election;
399 (II) appointment; or
400 (III) any contract of hire, express or implied, written or oral; and
401 (ii) including:
402 (A) an officer or employee of the state institutions of learning; and
403 (B) a member of the National Guard while on state active duty; and
404 (b) a person in the service of any employer, as defined in Section 34A-2-103 , who
405 employs one or more workers or operatives regularly in the same business, or in or about the
406 same establishment:
407 (i) under any contract of hire:
408 (A) express or implied; and
409 (B) oral or written;
410 (ii) including aliens and minors, whether legally or illegally working for hire; and
411 (iii) not including any person whose employment:
412 (A) is casual; and
413 (B) not in the usual course of the trade, business, or occupation of the employee's
414 employer.
415 (2) (a) Unless a lessee provides coverage as an employer under this chapter and
416 Chapter 3, any lessee in mines or of mining property and each employee and sublessee of the
417 lessee shall be:
418 (i) covered for compensation by the lessor under this chapter and Chapter 3;
419 (ii) subject to this chapter and Chapter 3; and
420 (iii) entitled to the benefits of this chapter and Chapter 3, to the same extent as if the
421 lessee, employee, or sublessee were employees of the lessor drawing the wages paid employees
422 for substantially similar work.
423 (b) The lessor may deduct from the proceeds of ores mined by the lessees an amount
424 equal to the insurance premium for that type of work.
425 (3) (a) A partnership or sole proprietorship may elect to include any partner of the
426 partnership or owner of the sole proprietorship as an employee of the partnership or sole
427 proprietorship under this chapter and Chapter 3.
428 (b) If a partnership or sole proprietorship makes an election under Subsection (3)(a),
429 the partnership or sole proprietorship shall serve written notice upon its insurance carrier
430 naming the persons to be covered.
431 (c) A partner of a partnership or owner of a sole proprietorship may not be considered
432 an employee of the partner's partnership or the owner's sole proprietorship under this chapter
433 or Chapter 3 until the notice described in Subsection (3)(b) is given.
434 (d) For premium rate making, the insurance carrier shall assume the salary or wage of
435 the partner or sole proprietor electing coverage under Subsection (3)(a) to be 100% of the
436 state's average weekly wage.
437 (4) (a) A corporation may elect not to include any director or officer of the corporation
438 as an employee under this chapter and Chapter 3.
439 (b) If a corporation makes an election under Subsection (4)(a), the corporation shall
440 serve written notice upon its insurance carrier naming the persons to be excluded from
441 coverage.
442 (c) A director or officer of a corporation is considered an employee under this chapter
443 and Chapter 3 until the notice described in Subsection (4)(b) is given.
444 (5) As used in this chapter and Chapter 3, "employee," "worker," and "operative" do
445 not include:
446 (a) a [
447 [
448 if:
449 (i) substantially all of the [
450 income for services is from real estate commissions; and
451 (ii) [
452 associate broker's services are performed under a written contract that provides that:
453 (A) the real estate agent is an independent contractor; and
454 (B) the [
455 an employee for federal income tax purposes;
456 (b) an offender performing labor under Section 64-13-16 or 64-13-19 , except as
457 required by federal statute or regulation;
458 (c) an individual who for an insurance producer, as defined in Section 31A-1-301 ,
459 solicits, negotiates, places or procures insurance if:
460 (i) substantially all of the individual's income from those services is from insurance
461 commissions; and
462 (ii) the services of the individual are performed under a written contract that states that
463 the individual:
464 (A) is an independent contractor;
465 (B) is not to be treated as an employee for federal income tax purposes; and
466 (C) can derive income from more than one insurance company;
467 (d) notwithstanding Subsection 34A-2-103 (4), an individual who provides domestic
468 work for a person if:
469 (i) the person for whom the domestic work is being provided receives or is eligible to
470 receive the domestic work under a state or federal program designed to pay the costs of
471 domestic work to prevent the person from being placed in:
472 (A) an institution; or
473 (B) a more restrictive placement than where that person resides at the time the person
474 receives the domestic work;
475 (ii) the individual is paid by a person designated by the Secretary of the Treasury in
476 accordance with Section 3504, Internal Revenue Code, as a fiduciary, agent, or other person
477 that has the control, receipt, custody, or disposal of, or pays the wages of the individual; and
478 (iii) the domestic work is performed under a written contract that notifies the
479 individual that the individual is not an employee under this chapter or Chapter 3; or
480 (e) subject to Subsections (6) and (7), an individual who:
481 (i) (A) owns a motor vehicle; or
482 (B) leases a motor vehicle to a motor carrier;
483 (ii) personally operates the motor vehicle described in Subsection (5)(e)(i);
484 (iii) operates the motor vehicle described in Subsection (5)(e)(i) under a written
485 agreement with the motor carrier that states that the individual operates the motor vehicle as
486 an independent contractor; and
487 (iv) provides to the motor carrier at the time the written agreement described in
488 Subsection (5)(e)(iii) is executed or as soon after the execution as provided by an insurer:
489 (A) a copy of a workers' compensation coverage waiver issued pursuant to Section
490 31A-22-1011 by an insurer to the individual; and
491 (B) proof that the individual is covered by occupational accident related insurance.
492 (6) An individual described in Subsection (5)(d) or (e) may become an employee
493 under this chapter and Chapter 3 if the employer of the individual complies with:
494 (a) this chapter and Chapter 3; and
495 (b) commission rules.
496 (7) For purposes of Subsection (5)(e):
497 (a) "Motor carrier" means a person engaged in the business of transporting freight,
498 merchandise, or other property by a commercial vehicle on a highway within this state.
499 (b) "Motor vehicle" means a self-propelled vehicle intended primarily for use and
500 operation on the highways, including a trailer or semitrailer designed for use with another
501 motorized vehicle.
502 (c) "Occupational accident related insurance" means insurance that provides the
503 following coverage for an injury sustained in the course of working under a written agreement
504 described in Subsection (5)(e)(iii):
505 (i) disability benefits;
506 (ii) death benefits;
507 (iii) medical expense benefits, which include:
508 (A) hospital coverage;
509 (B) surgical coverage;
510 (C) prescription drug coverage; and
511 (D) dental coverage.
512 Section 8. Section 41-1a-422 is amended to read:
513 41-1a-422. Support special group license plates -- Contributor -- Voluntary
514 contribution collection procedures.
515 (1) As used in this section:
516 (a) (i) Except as provided in Subsection (1)(a)(ii), "contributor" means a person who
517 has donated or in whose name at least $25 has been donated to:
518 (A) a scholastic scholarship fund of a single named institution;
519 (B) the Department of Veterans' Affairs for veterans' programs;
520 (C) the Division of Wildlife Resources for the Wildlife Resources Account created in
521 Section 23-14-13 , for conservation of wildlife and the enhancement, preservation, protection,
522 access, and management of wildlife habitat;
523 (D) the Department of Agriculture and Food for the benefit of conservation districts;
524 (E) the Division of Parks and Recreation for the benefit of snowmobile programs;
525 (F) the Guardian Ad Litem Services Account and the Children's Museum of Utah,
526 with the donation evenly divided between the two;
527 (G) the Boy Scouts of America for the benefit of a Utah Boy Scouts of America
528 council as specified by the contributor;
529 (H) No More Homeless Pets in Utah for distribution to organizations or individuals
530 that provide spay and neuter programs that subsidize the sterilization of domestic animals;
531 (I) the Utah Alliance of Boys and Girls Clubs, Inc. to provide and enhance youth
532 development programs;
533 (J) the Utah Association of Public School Foundations to support public education;
534 (K) the Utah Housing Opportunity Restricted Account created in Section [
535 61-2-204 to assist people who have severe housing needs;
536 (L) the Public Safety Honoring Heroes Restricted Account created in Section 53-1-118
537 to support the families of fallen Utah Highway Patrol troopers and other Department of Public
538 Safety employees;
539 (M) the Division of Parks and Recreation for distribution to organizations that provide
540 support for Zion National Park;
541 (N) the Firefighter Support Restricted Account created in Section 53-7-109 to support
542 firefighter organizations; or
543 (O) the Share the Road Bicycle Support Restricted Account created in Section
544 72-2-127 to support bicycle operation and safety awareness programs.
545 (ii) (A) For a veterans' special group license plate, "contributor" means a person who
546 has donated or in whose name at least a $25 donation at the time of application and $10
547 annual donation thereafter has been made.
548 (B) For a Utah Housing Opportunity special group license plate, "contributor" means a
549 person who:
550 (I) has donated or in whose name at least $30 has been donated at the time of
551 application and annually after the time of application; and
552 (II) is a member of a trade organization for real estate licensees that has more than
553 15,000 Utah members.
554 (C) For an Honoring Heroes special group license plate, "contributor" means a person
555 who has donated or in whose name at least $35 has been donated at the time of application
556 and annually thereafter.
557 (D) For a firefighter support special group license plate, "contributor" means a person
558 who:
559 (I) has donated or in whose name at least $15 has been donated at the time of
560 application and annually after the time of application; and
561 (II) is a currently employed, volunteer, or retired firefighter.
562 (b) "Institution" means a state institution of higher education as defined under Section
563 53B-3-102 or a private institution of higher education in the state accredited by a regional or
564 national accrediting agency recognized by the United States Department of Education.
565 (2) (a) An applicant for original or renewal collegiate special group license plates
566 under Subsection (1)(a)(i) must be a contributor to the institution named in the application and
567 present the original contribution verification form under Subsection (2)(b) or make a
568 contribution to the division at the time of application under Subsection (3).
569 (b) An institution with a support special group license plate shall issue to a contributor
570 a verification form designed by the commission containing:
571 (i) the name of the contributor;
572 (ii) the institution to which a donation was made;
573 (iii) the date of the donation; and
574 (iv) an attestation that the donation was for a scholastic scholarship.
575 (c) The state auditor may audit each institution to verify that the moneys collected by
576 the institutions from contributors are used for scholastic scholarships.
577 (d) After an applicant has been issued collegiate license plates or renewal decals, the
578 commission shall charge the institution whose plate was issued, a fee determined in
579 accordance with Section 63J-1-504 for management and administrative expenses incurred in
580 issuing and renewing the collegiate license plates.
581 (e) If the contribution is made at the time of application, the contribution shall be
582 collected, treated, and deposited as provided under Subsection (3).
583 (3) (a) An applicant for original or renewal support special group license plates under
584 this section must be a contributor to the sponsoring organization associated with the license
585 plate.
586 (b) This contribution shall be:
587 (i) unless collected by the named institution under Subsection (2), collected by the
588 division;
589 (ii) considered a voluntary contribution for the funding of the activities specified
590 under this section and not a motor vehicle registration fee;
591 (iii) deposited into the appropriate account less actual administrative costs associated
592 with issuing the license plates; and
593 (iv) for a firefighter special group license plate, deposited into the appropriate account
594 less:
595 (A) the costs of reordering firefighter special group license plate decals; and
596 (B) the costs of replacing recognition special group license plates with new license
597 plates under Subsection 41-1a-1211 (13).
598 (c) The donation described in Subsection (1)(a) must be made in the 12 months prior
599 to registration or renewal of registration.
600 (d) The donation described in Subsection (1)(a) shall be a one-time donation made to
601 the division when issuing original:
602 (i) snowmobile license plates; or
603 (ii) conservation license plates.
604 (4) Veterans' license plates shall display one of the symbols representing the Army,
605 Navy, Air Force, Marines, Coast Guard, or American Legion.
606 Section 9. Section 48-2c-1502 is amended to read:
607 48-2c-1502. Definitions.
608 As used in this part:
609 (1) "Professional services company" means a limited liability company organized
610 under this part to render professional services.
611 (2) "Professional services" means the personal services rendered by:
612 (a) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
613 and any subsequent laws regulating the practice of architecture;
614 (b) an attorney granted the authority to practice law by the:
615 (i) Supreme Court of Utah; or
616 (ii) the Supreme Court, other court, agency, instrumentality, or regulating board that
617 licenses or regulates the authority to practice law in any state or territory of the United States
618 other than Utah;
619 (c) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
620 Practice Act, and any subsequent laws regulating the practice of chiropractic;
621 (d) a doctor of dentistry holding a license under Title 58, Chapter 69, [
622 Dentist and Dental [
623 the practice of dentistry;
624 (e) a professional engineer registered under Title 58, Chapter 22, Professional
625 Engineers and Professional Land Surveyors Licensing Act;
626 (f) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician
627 Practice Act, and any subsequent laws regulating the practice of naturopathy;
628 (g) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
629 Chapter 44a, Nurse Midwife Practice Act;
630 (h) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry
631 Practice Act, and any subsequent laws regulating the practice of optometry;
632 (i) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
633 Utah Osteopathic Medical Practice Act, and any subsequent laws regulating the practice of
634 osteopathy;
635 (j) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice Act,
636 and any subsequent laws regulating the practice of pharmacy;
637 (k) a physician, surgeon, or doctor of medicine holding a license under Title 58,
638 Chapter 67, Utah Medical Practice Act, and any subsequent laws regulating the practice of
639 medicine;
640 (l) a physical therapist holding a license under Title 58, Chapter 24b, Physical Therapy
641 Practice Act, and any subsequent laws regulating the practice of physical therapy;
642 (m) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
643 Physician Licensing Act, and any subsequent laws regulating the practice of podiatry;
644 (n) a psychologist holding a license under Title 58, Chapter 61, Psychologist
645 Licensing Act, and any subsequent laws regulating the practice of psychology;
646 (o) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
647 Accountant Licensing Act, and any subsequent laws regulating the practice of public
648 accounting;
649 (p) a [
650 holding a license under Title 61, Chapter [
651 and Practices Act, and any subsequent laws regulating the sale, exchange, purchase, rental, or
652 leasing of real estate;
653 (q) a clinical or certified social worker holding a license under Title 58, Chapter 60,
654 Part 2, Social Worker Licensing Act, and any subsequent laws regulating the practice of social
655 work;
656 (r) a mental health therapist holding a license under Title 58, Chapter 60, Mental
657 Health Professional Practice Act, and any subsequent laws regulating the practice of mental
658 health therapy; [
659 (s) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice
660 Act, and any subsequent laws regulating the practice of veterinary medicine[
661 (t) an individual licensed, certified, or registered under Title 61, Chapter 2b, Real
662 Estate Appraiser Licensing and Certification Act, and any subsequent laws regulating the
663 practice of appraising real estate.
664 (3) "Regulating board" means the board or agency organized pursuant to state law that
665 is charged with the licensing and regulation of the practice of the profession that a company is
666 organized to render.
667 Section 10. Section 57-11-2 is amended to read:
668 57-11-2. Definitions.
669 As used in this chapter:
670 (1) (a) "Disposition" includes sale, lease, assignment, award by lottery, or any other
671 transaction concerning a subdivision, if undertaken for gain or profit.
672 (b) "Disposition" does not include the sale or lease of land held by railroads for right
673 of way if the land is within 400 feet of the center line of a railroad tract.
674 (2) "Division" means the Division of Real Estate created in Section [
675 (3) "Federal act" means the federal Interstate Land Sales Full Disclosure Act, 15
676 U.S.C. Sec. 1701, et seq., or any successor federal act.
677 (4) (a) "Industrial park" means a subdivision or subdivided lands offered as a part of a
678 common promotional plan of advertising and sale zoned for office, manufacturing,
679 warehousing, commercial, industrial, distribution, or wholesale use and utilized for one or
680 more of those purposes.
681 (b) "Industrial park" does not include land offered for sale that is designed or intended
682 to be used for recreational, residential, including multiple family dwellings, or agricultural
683 purposes.
684 (5) "Offer" includes an inducement, solicitation, or attempt to encourage a person to
685 acquire an interest in land if undertaken for gain or profit.
686 (6) "Person" includes:
687 (a) a business trust;
688 (b) an estate;
689 (c) a trust;
690 (d) a partnership;
691 (e) an unincorporated association;
692 (f) two or more of any entity having a joint or common interest; or
693 (g) any other legal or commercial entity.
694 (7) "Purchaser" means a person who acquires or attempts to acquire or succeeds to an
695 interest in land.
696 (8) "Residential building" means a structure intended for occupation as a residence
697 which, at the time of an offer or disposition of the unit on which it is situated, or on which
698 there is a legal obligation on the part of the seller to complete construction of it within two
699 years from date of disposition, has, or if completed would have, ready access to water, gas,
700 electricity, and roads.
701 (9) "Subdivider" means:
702 (a) an owner of an interest in subdivided lands who offers the subdivided lands for
703 disposition; or
704 (b) a principal agent of an owner of an interest in subdivided lands if the owner is
705 inactive.
706 (10) (a) "Subdivision" and "subdivided lands" means land that is divided or is
707 proposed to be divided for the purpose of disposition into 10 or more units including land,
708 whether contiguous or not, if 10 or more units are offered as a part of a common promotional
709 plan of advertising and sale.
710 (b) If a subdivision is offered by a developer or group of developers, and the land is
711 contiguous or is known, designated, or advertised as a common tract or by a common name,
712 that land is presumed, without regard to the number of units covered by each individual
713 offering, to be part of a common promotional plan.
714 (11) "Unit" includes a lot, parcel, or other interest in land separately offered for
715 disposition.
716 Section 11. Section 57-11-14 is amended to read:
717 57-11-14. Revocation, suspension, or denial of registration -- Grounds --
718 Suspension or revocation of real estate license.
719 (1) (a) If the division makes a written finding of fact that a subdivider engages in one
720 or more acts described in Subsection (1)(b), the division may:
721 (i) deny an application for registration;
722 (ii) revoke, suspend, or deny reissuance of a registration; or
723 (iii) impose a civil penalty not to exceed the greater of:
724 (A) $2,500 for each violation; or
725 (B) the amount of any gain or economic benefit derived from each violation.
726 (b) Subsection (1)(a) applies if the division makes a written finding of fact that a
727 subdivider:
728 (i) fails to comply with the terms of a cease and desist order;
729 (ii) is convicted in a court prior or subsequent to the filing of the application for
730 registration of a crime involving:
731 (A) fraud;
732 (B) deception;
733 (C) false pretenses;
734 (D) misrepresentation;
735 (E) false advertising; or
736 (F) dishonest dealing in real estate transactions;
737 (iii) is subject to an injunction or administrative order restraining a false or misleading
738 promotional plan involving land dispositions;
739 (iv) disposes of, conceals, or diverts funds or assets of any person so as to defeat the
740 rights of subdivision purchasers;
741 (v) fails to perform faithfully a stipulation or agreement made with the division as an
742 inducement to:
743 (A) grant a registration;
744 (B) reinstate a registration;
745 (C) revoke a cease and desist order; or
746 (D) approve any promotional plan or public offering statement;
747 (vi) makes an intentional misrepresentation, or conceals a material fact, in an
748 application for registration;
749 (vii) violates this chapter or the rules adopted under this chapter;
750 (viii) directly or through an agent or employee knowingly engages in false, deceptive,
751 or misleading advertising, promotional, or sales methods to offer or dispose of an interest in
752 subdivided lands;
753 (ix) engages in the offering of subdivided lands that has constituted or that may
754 constitute a fraud upon purchasers or prospective purchasers of the subdivided lands; or
755 (x) engages in a dishonest practice in any industry involving sales to consumers.
756 (c) The division shall accompany with a finding of fact required by this Subsection (1)
757 a concise and explicit statement of the underlying facts supporting the finding.
758 (2) As an alternative to revoking the registration of a subdivider, the director may
759 issue a cease and desist order if after notice and a hearing the director finds that the subdivider
760 is guilty of a violation for which revocation may be ordered.
761 (3) (a) The division shall suspend or revoke the license of a [
762 broker, associate broker, or [
763 time the director determines to be justified under the circumstances.
764 (b) A suspension or revocation under this section is in addition to any other penalty
765 that may be imposed under this chapter, subject to [
766 61-2f-404 .
767 Section 12. Section 57-19-14 is amended to read:
768 57-19-14. Registration of salesperson.
769 (1) Unless the transaction is exempt under Section 57-19-26 , it is unlawful for any
770 person to act as a salesperson marketing a project in this state without first registering under
771 this chapter as a salesperson.
772 (2) The fee for registration as a salesperson is waived by the division for persons
773 licensed by the division under Title 61, Chapter [
774 Act.
775 Section 13. Section 57-21-2 is amended to read:
776 57-21-2. Definitions.
777 As used in this chapter:
778 (1) "Aggrieved person" includes any person who:
779 (a) claims to have been injured by a discriminatory housing practice; or
780 (b) believes that the person will be injured by a discriminatory housing practice that is
781 about to occur.
782 (2) "Commission" means the Labor Commission.
783 (3) "Complainant" means an aggrieved person, including the director, who has
784 commenced a complaint with the division.
785 (4) "Conciliation" means the attempted resolution of issues raised by a complaint of
786 discriminatory housing practices by the investigation of the complaint through informal
787 negotiations involving the complainant, the respondent, and the division.
788 (5) "Conciliation agreement" means a written agreement setting forth the resolution of
789 the issues in conciliation.
790 (6) "Conciliation conference" means the attempted resolution of issues raised by a
791 complaint or by the investigation of a complaint through informal negotiations involving the
792 complainant, the respondent, and the division. The conciliation conference is not subject to
793 Title 63G, Chapter 4, Administrative Procedures Act.
794 (7) "Covered multifamily dwellings" means:
795 (a) buildings consisting of four or more dwelling units if the buildings have one or
796 more elevators; and
797 (b) ground floor units in other buildings consisting of four or more dwelling units.
798 (8) "Director" means the director of the division or a designee.
799 (9) (a) "Disability" means a physical or mental impairment that substantially limits
800 one or more of a person's major life activities, including a person having a record of such an
801 impairment or being regarded as having such an impairment.
802 (b) "Disability" does not include current illegal use of, or addiction to, any federally
803 controlled substance, as defined in Section 102 of the Controlled Substances Act, 21 U.S.C.
804 Sec. 802.
805 (10) "Discriminate" includes segregate or separate.
806 (11) "Discriminatory housing practice" means an act that is unlawful under this
807 chapter.
808 (12) "Division" means the Division of Antidiscrimination and Labor established under
809 the commission.
810 (13) (a) "Dwelling" means any building or structure, or a portion of a building or
811 structure, occupied as, or designed or intended for occupancy as, a residence of one or more
812 families.
813 (b) "Dwelling" also includes vacant land that is offered for sale or lease for the
814 construction or location of a dwelling as described in Subsection (13)(a).
815 (14) (a) "Familial status" means one or more individuals who have not attained the age
816 of 18 years being domiciled with:
817 (i) a parent or another person having legal custody of the individual or individuals; or
818 (ii) the designee of the parent or other person having custody, with the written
819 permission of the parent or other person.
820 (b) The protections afforded against discrimination on the basis of familial status shall
821 apply to any person who:
822 (i) is pregnant;
823 (ii) is in the process of securing legal custody of any individual who has not attained
824 the age of 18 years; or
825 (iii) is a single individual.
826 (15) "National origin" means the place of birth of an individual or of any lineal
827 ancestors.
828 (16) "Person" includes one or more individuals, corporations, limited liability
829 companies, partnerships, associations, labor organizations, legal representatives, mutual
830 companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in
831 cases under the United States Bankruptcy Code, receivers, and fiduciaries.
832 (17) "Presiding officer" has the same meaning as provided in Section 63G-4-103 .
833 (18) "Real estate broker" or "salesperson" means a principal [
834 associate [
835 [
836 (19) "Respondent" means a person against whom a complaint of housing
837 discrimination has been initiated.
838 (20) "Sex" means gender and includes pregnancy, childbirth, and disabilities related to
839 pregnancy or childbirth.
840 (21) "Source of income" means the verifiable condition of being a recipient of federal,
841 state, or local assistance, including medical assistance, or of being a tenant receiving federal,
842 state, or local subsidies, including rental assistance or rent supplements.
843 Section 14. Section 57-23-5 is amended to read:
844 57-23-5. License required.
845 Except as provided by Section [
846 otherwise dispose of a cooperative interest in this state unless [
847 the division under Title 61, Chapter [
848 Practices Act, as a principal [
849 sales agent.
850 Section 15. Section 57-27-102 is amended to read:
851 57-27-102. Definitions.
852 As used in this chapter:
853 (1) "Contaminated" or "contamination" is as defined in Section 19-6-902 .
854 (2) "Decontaminated" or "decontamination" is as defined in Section 19-6-902 .
855 (3) (a) "Owner" means the holder of a legal or equitable title or interest in real
856 property.
857 (b) "Owner" includes a shareholder, partner, operator, or other legal entity.
858 (4) "Real estate professional" means a licensee under Title 61, Chapter [
859
860 Section 16. Section 58-56-16 is amended to read:
861 58-56-16. Registration of dealers -- Bonding requirements -- Renewal --
862 Exemptions -- Discipline.
863 (1) Each person engaged in the sale of factory built housing in the state, except as
864 provided in Subsection (4), shall register with the division as a dealer.
865 (2) Each applicant for registration under this section shall:
866 (a) submit an application in a form prescribed by the division;
867 (b) pay a fee determined by the department under Section 63J-1-504 ; and
868 (c) provide the division with a registration bond in accordance with rules established
869 by the division.
870 (3) (a) The division shall issue each registration under this section in accordance with
871 a two-year renewal cycle established by rule.
872 (b) The division may by rule extend or shorten a renewal cycle by as much as one year
873 to stagger the renewal cycles it administers.
874 (c) Each registration under this section automatically expires on the expiration date on
875 the certificate of registration unless the registrant renews it in accordance with Section
876 58-1-308 .
877 (4) Subsection (1) does not apply to:
878 (a) a person not regularly engaged in the sale of factory built housing who is selling a
879 unit the person owns for the person's own account;
880 (b) a principal broker licensed under Title 61, Chapter [
881 Real Estate Licensing and Practices Act; or
882 (c) a sales agent or associate broker licensed under Title 61, Chapter [
883
884 agent for, and under the supervision of, the [
885 agent or associate broker is affiliated.
886 (5) Grounds for refusing to issue a registration, for refusing to renew a registration, for
887 revoking, suspending, restricting, or placing on probation a registration, for issuing a public or
888 private reprimand to a registrant, and for issuing a cease and desist order shall be in
889 accordance with Section 58-1-401 .
890 Section 17. Section 61-1-13 is amended to read:
891 61-1-13. Definitions.
892 (1) As used in this chapter:
893 (a) "Affiliate" means a person that, directly or indirectly, through one or more
894 intermediaries, controls or is controlled by, or is under common control with a person
895 specified.
896 (b) (i) "Agent" means an individual other than a broker-dealer who represents a
897 broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities.
898 (ii) "Agent" does not include an individual who represents:
899 (A) an issuer, who receives no commission or other remuneration, directly or
900 indirectly, for effecting or attempting to effect purchases or sales of securities in this state, and
901 who effects transactions:
902 (I) in securities exempted by Subsection 61-1-14 (1)(a), (b), (c), or (g);
903 (II) exempted by Subsection 61-1-14 (2);
904 (III) in a covered security as described in Sections 18(b)(3) and 18(b)(4)(D) of the
905 Securities Act of 1933; or
906 (IV) with existing employees, partners, officers, or directors of the issuer; or
907 (B) a broker-dealer in effecting transactions in this state limited to those transactions
908 described in Section 15(h)(2) of the Securities Exchange Act of 1934.
909 (iii) A partner, officer, or director of a broker-dealer or issuer, or a person occupying a
910 similar status or performing similar functions, is an agent only if the partner, officer, director,
911 or person otherwise comes within the definition of "agent."
912 (iv) "Agent" does not include a person described in Subsection (3).
913 (c) (i) "Broker-dealer" means a person engaged in the business of effecting
914 transactions in securities for the account of others or for the person's own account.
915 (ii) "Broker-dealer" does not include:
916 (A) an agent;
917 (B) an issuer;
918 (C) a depository institution or trust company;
919 (D) a person who has no place of business in this state if:
920 (I) the person effects transactions in this state exclusively with or through:
921 (Aa) the issuers of the securities involved in the transactions;
922 (Bb) other broker-dealers;
923 (Cc) a depository institution, whether acting for itself or as a trustee;
924 (Dd) a trust company, whether acting for itself or as a trustee;
925 (Ee) an insurance company, whether acting for itself or as a trustee;
926 (Ff) an investment company, as defined in the Investment Company Act of 1940,
927 whether acting for itself or as a trustee;
928 (Gg) a pension or profit-sharing trust, whether acting for itself or as a trustee; or
929 (Hh) another financial institution or institutional buyer, whether acting for itself or as
930 a trustee; or
931 (II) during any period of 12 consecutive months the person does not direct more than
932 15 offers to sell or buy into this state in any manner to persons other than those specified in
933 Subsection (1)(c)(ii)(D)(I), whether or not the offeror or an offeree is then present in this state;
934 (E) a general partner who organizes and effects transactions in securities of three or
935 fewer limited partnerships, of which the person is the general partner, in any period of 12
936 consecutive months;
937 (F) a person whose participation in transactions in securities is confined to those
938 transactions made by or through a broker-dealer licensed in this state;
939 (G) a person who is a [
940 state and who effects transactions in a bond or other evidence of indebtedness secured by a
941 real or chattel mortgage or deed of trust, or by an agreement for the sale of real estate or
942 chattels, if the entire mortgage, deed [
943 other evidences of indebtedness secured thereby, is offered and sold as a unit;
944 (H) a person effecting transactions in commodity contracts or commodity options;
945 (I) a person described in Subsection (3); or
946 (J) other persons as the division, by rule or order, may designate, consistent with the
947 public interest and protection of investors, as not within the intent of this Subsection (1)(c).
948 (d) "Buy" or "purchase" means a contract for purchase of, contract to buy, or
949 acquisition of a security or interest in a security for value.
950 (e) "Commission" means the Securities Commission created in Section 61-1-18.5 .
951 (f) "Commodity" means, except as otherwise specified by the division by rule:
952 (i) an agricultural, grain, or livestock product or byproduct, except real property or a
953 timber, agricultural, or livestock product grown or raised on real property and offered or sold
954 by the owner or lessee of the real property;
955 (ii) a metal or mineral, including a precious metal, except a numismatic coin whose
956 fair market value is at least 15% greater than the value of the metal it contains;
957 (iii) a gem or gemstone, whether characterized as precious, semi-precious, or
958 otherwise;
959 (iv) a fuel, whether liquid, gaseous, or otherwise;
960 (v) a foreign currency; and
961 (vi) all other goods, articles, products, or items of any kind, except a work of art
962 offered or sold by art dealers, at public auction or offered or sold through a private sale by the
963 owner of the work.
964 (g) (i) "Commodity contract" means an account, agreement, or contract for the
965 purchase or sale, primarily for speculation or investment purposes and not for use or
966 consumption by the offeree or purchaser, of one or more commodities, whether for immediate
967 or subsequent delivery or whether delivery is intended by the parties, and whether
968 characterized as a cash contract, deferred shipment or deferred delivery contract, forward
969 contract, futures contract, installment or margin contract, leverage contract, or otherwise.
970 (ii) A commodity contract offered or sold shall, in the absence of evidence to the
971 contrary, be presumed to be offered or sold for speculation or investment purposes.
972 (iii) (A) A commodity contract may not include a contract or agreement that requires,
973 and under which the purchaser receives, within 28 calendar days from the payment in good
974 funds any portion of the purchase price, physical delivery of the total amount of each
975 commodity to be purchased under the contract or agreement.
976 (B) A purchaser is not considered to have received physical delivery of the total
977 amount of each commodity to be purchased under the contract or agreement when the
978 commodity or commodities are held as collateral for a loan or are subject to a lien of any
979 person when the loan or lien arises in connection with the purchase of each commodity or
980 commodities.
981 (h) (i) "Commodity option" means an account, agreement, or contract giving a party to
982 the option the right but not the obligation to purchase or sell one or more commodities or one
983 or more commodity contracts, or both whether characterized as an option, privilege,
984 indemnity, bid, offer, put, call, advance guaranty, decline guaranty, or otherwise.
985 (ii) "Commodity option" does not include an option traded on a national securities
986 exchange registered:
987 (A) with the Securities and Exchange Commission; or
988 (B) on a board of trade designated as a contract market by the Commodity Futures
989 Trading Commission.
990 (i) "Depository institution" is as defined in Section 7-1-103 .
991 (j) "Director" means the director of the division appointed in accordance with Section
992 61-1-18 .
993 (k) "Division" means the Division of Securities established by Section 61-1-18 .
994 (l) "Executive director" means the executive director of the Department of Commerce.
995 (m) "Federal covered adviser" means a person who:
996 (i) is registered under Section 203 of the Investment Advisers Act of 1940; or
997 (ii) is excluded from the definition of "investment adviser" under Section 202(a)(11)
998 of the Investment Advisers Act of 1940.
999 (n) "Federal covered security" means a security that is a covered security under
1000 Section 18(b) of the Securities Act of 1933 or rules or regulations promulgated under Section
1001 18(b) of the Securities Act of 1933.
1002 (o) "Fraud," "deceit," and "defraud" are not limited to their common-law meanings.
1003 (p) "Guaranteed" means guaranteed as to payment of principal or interest as to debt
1004 securities, or dividends as to equity securities.
1005 (q) (i) "Investment adviser" means a person who:
1006 (A) for compensation, engages in the business of advising others, either directly or
1007 through publications or writings, as to the value of securities or as to the advisability of
1008 investing in, purchasing, or selling securities; or
1009 (B) for compensation and as a part of a regular business, issues or promulgates
1010 analyses or reports concerning securities.
1011 (ii) "Investment adviser" includes a financial planner or other person who:
1012 (A) as an integral component of other financially related services, provides the
1013 investment advisory services described in Subsection (1)(q)(i) to others for compensation and
1014 as part of a business; or
1015 (B) holds the person out as providing the investment advisory services described in
1016 Subsection (1)(q)(i) to others for compensation.
1017 (iii) "Investment adviser" does not include:
1018 (A) an investment adviser representative;
1019 (B) a depository institution or trust company;
1020 (C) a lawyer, accountant, engineer, or teacher whose performance of these services is
1021 solely incidental to the practice of the profession;
1022 (D) a broker-dealer or its agent whose performance of these services is solely
1023 incidental to the conduct of its business as a broker-dealer and who receives no special
1024 compensation for the services;
1025 (E) a publisher of a bona fide newspaper, news column, news letter, news magazine,
1026 or business or financial publication or service, of general, regular, and paid circulation,
1027 whether communicated in hard copy form, or by electronic means, or otherwise, that does not
1028 consist of the rendering of advice on the basis of the specific investment situation of each
1029 client;
1030 (F) a person who is a federal covered adviser;
1031 (G) a person described in Subsection (3); or
1032 (H) such other persons not within the intent of this Subsection (1)(q) as the division
1033 may by rule or order designate.
1034 (r) (i) "Investment adviser representative" means a partner, officer, director of, or a
1035 person occupying a similar status or performing similar functions, or other individual, except
1036 clerical or ministerial personnel, who:
1037 (A) (I) is employed by or associated with an investment adviser who is licensed or
1038 required to be licensed under this chapter; or
1039 (II) has a place of business located in this state and is employed by or associated with
1040 a federal covered adviser; and
1041 (B) does any of the following:
1042 (I) makes a recommendation or otherwise renders advice regarding securities;
1043 (II) manages accounts or portfolios of clients;
1044 (III) determines which recommendation or advice regarding securities should be given;
1045 (IV) solicits, offers, or negotiates for the sale of or sells investment advisory services;
1046 or
1047 (V) supervises employees who perform any of the acts described in this Subsection
1048 (1)(r)(i)(B).
1049 (ii) "Investment adviser representative" does not include a person described in
1050 Subsection (3).
1051 (s) "Investment contract" includes:
1052 (i) an investment in a common enterprise with the expectation of profit to be derived
1053 through the essential managerial efforts of someone other than the investor; or
1054 (ii) an investment by which:
1055 (A) an offeree furnishes initial value to an offerer;
1056 (B) a portion of the initial value is subjected to the risks of the enterprise;
1057 (C) the furnishing of the initial value is induced by the offerer's promises or
1058 representations that give rise to a reasonable understanding that a valuable benefit of some
1059 kind over and above the initial value will accrue to the offeree as a result of the operation of
1060 the enterprise; and
1061 (D) the offeree does not receive the right to exercise practical or actual control over the
1062 managerial decisions of the enterprise.
1063 (t) "Isolated transaction" means not more than a total of two transactions that occur
1064 anywhere during six consecutive months.
1065 (u) (i) "Issuer" means a person who issues or proposes to issue a security or has
1066 outstanding a security that it has issued.
1067 (ii) With respect to a preorganization certificate or subscription, "issuer" means the
1068 one or more promoters of the person to be organized.
1069 (iii) "Issuer" means the one or more persons performing the acts and assuming duties
1070 of a depositor or manager under the provisions of the trust or other agreement or instrument
1071 under which the security is issued with respect to:
1072 (A) interests in trusts, including collateral trust certificates, voting trust certificates,
1073 and certificates of deposit for securities; or
1074 (B) shares in an investment company without a board of directors.
1075 (iv) With respect to an equipment trust certificate, a conditional sales contract, or
1076 similar securities serving the same purpose, "issuer" means the person by whom the equipment
1077 or property is to be used.
1078 (v) With respect to interests in partnerships, general or limited, "issuer" means the
1079 partnership itself and not the general partner or partners.
1080 (vi) With respect to certificates of interest or participation in oil, gas, or mining titles
1081 or leases or in payment out of production under the titles or leases, "issuer" means the owner
1082 of the title or lease or right of production, whether whole or fractional, who creates fractional
1083 interests therein for the purpose of sale.
1084 (v) (i) "Life settlement interest" means the entire interest or a fractional interest in any
1085 of the following that is the subject of a life settlement:
1086 (A) a policy; or
1087 (B) the death benefit under a policy.
1088 (ii) "Life settlement interest" does not include the initial purchase from the owner by a
1089 life settlement provider.
1090 (w) "Nonissuer" means not directly or indirectly for the benefit of the issuer.
1091 (x) "Person" means:
1092 (i) an individual;
1093 (ii) a corporation;
1094 (iii) a partnership;
1095 (iv) a limited liability company;
1096 (v) an association;
1097 (vi) a joint-stock company;
1098 (vii) a joint venture;
1099 (viii) a trust where the interests of the beneficiaries are evidenced by a security;
1100 (ix) an unincorporated organization;
1101 (x) a government; or
1102 (xi) a political subdivision of a government.
1103 (y) "Precious metal" means the following, whether in coin, bullion, or other form:
1104 (i) silver;
1105 (ii) gold;
1106 (iii) platinum;
1107 (iv) palladium;
1108 (v) copper; and
1109 (vi) such other substances as the division may specify by rule.
1110 (z) "Promoter" means a person who, acting alone or in concert with one or more
1111 persons, takes initiative in founding or organizing the business or enterprise of a person.
1112 (aa) (i) Except as provided in Subsection (1)(aa)(ii), "record" means information that
1113 is:
1114 (A) inscribed in a tangible medium; or
1115 (B) (I) stored in an electronic or other medium; and
1116 (II) retrievable in perceivable form.
1117 (ii) This Subsection (1)(aa) does not apply when the context requires otherwise,
1118 including when "record" is used in the following phrases:
1119 (A) "of record";
1120 (B) "official record"; or
1121 (C) "public record."
1122 (bb) (i) "Sale" or "sell" includes a contract for sale of, contract to sell, or disposition
1123 of, a security or interest in a security for value.
1124 (ii) "Offer" or "offer to sell" includes an attempt or offer to dispose of, or solicitation
1125 of an offer to buy, a security or interest in a security for value.
1126 (iii) The following are examples of the definitions in Subsection (1)(bb)(i) or (ii):
1127 (A) a security given or delivered with or as a bonus on account of a purchase of a
1128 security or any other thing, is part of the subject of the purchase, and is offered and sold for
1129 value;
1130 (B) a purported gift of assessable stock is an offer or sale as is each assessment levied
1131 on the stock;
1132 (C) an offer or sale of a security that is convertible into, or entitles its holder to acquire
1133 or subscribe to another security of the same or another issuer is an offer or sale of that security,
1134 and also an offer of the other security, whether the right to convert or acquire is exercisable
1135 immediately or in the future;
1136 (D) a conversion or exchange of one security for another constitutes an offer or sale of
1137 the security received in a conversion or exchange, and the offer to buy or the purchase of the
1138 security converted or exchanged;
1139 (E) securities distributed as a dividend wherein the person receiving the dividend
1140 surrenders the right, or the alternative right, to receive a cash or property dividend is an offer
1141 or sale;
1142 (F) a dividend of a security of another issuer is an offer or sale; or
1143 (G) the issuance of a security under a merger, consolidation, reorganization,
1144 recapitalization, reclassification, or acquisition of assets constitutes the offer or sale of the
1145 security issued as well as the offer to buy or the purchase of a security surrendered in
1146 connection therewith, unless the sole purpose of the transaction is to change the issuer's
1147 domicile.
1148 (iv) The terms defined in Subsections (1)(bb)(i) and (ii) do not include:
1149 (A) a good faith gift;
1150 (B) a transfer by death;
1151 (C) a transfer by termination of a trust or of a beneficial interest in a trust;
1152 (D) a security dividend not within Subsection (1)(bb)(iii)(E) or (F); or
1153 (E) a securities split or reverse split.
1154 (cc) "Securities Act of 1933," "Securities Exchange Act of 1934," and "Investment
1155 Company Act of 1940" mean the federal statutes of those names as amended before or after
1156 the effective date of this chapter.
1157 (dd) "Securities Exchange Commission" means the United States Securities Exchange
1158 Commission created by the Securities Exchange Act of 1934.
1159 (ee) (i) "Security" means a:
1160 (A) note;
1161 (B) stock;
1162 (C) treasury stock;
1163 (D) bond;
1164 (E) debenture;
1165 (F) evidence of indebtedness;
1166 (G) certificate of interest or participation in a profit-sharing agreement;
1167 (H) collateral-trust certificate;
1168 (I) preorganization certificate or subscription;
1169 (J) transferable share;
1170 (K) investment contract;
1171 (L) burial certificate or burial contract;
1172 (M) voting-trust certificate;
1173 (N) certificate of deposit for a security;
1174 (O) certificate of interest or participation in an oil, gas, or mining title or lease or in
1175 payments out of production under such a title or lease;
1176 (P) commodity contract or commodity option;
1177 (Q) interest in a limited liability company;
1178 (R) life settlement interest; or
1179 (S) in general, an interest or instrument commonly known as a "security," or a
1180 certificate of interest or participation in, temporary or interim certificate for, receipt for,
1181 guarantee of, or warrant or right to subscribe to or purchase an item listed in Subsections
1182 (1)(ee)(i)(A) through (R).
1183 (ii) "Security" does not include:
1184 (A) an insurance or endowment policy or annuity contract under which an insurance
1185 company promises to pay money in a lump sum or periodically for life or some other specified
1186 period;
1187 (B) an interest in a limited liability company in which the limited liability company is
1188 formed as part of an estate plan where all of the members are related by blood or marriage, or
1189 the person claiming this exception can prove that all of the members are actively engaged in
1190 the management of the limited liability company; or
1191 (C) (I) a whole long-term estate in real property;
1192 (II) an undivided fractionalized long-term estate in real property that consists of 10 or
1193 fewer owners; or
1194 (III) an undivided fractionalized long-term estate in real property that consists of more
1195 than 10 owners if, when the real property estate is subject to a management agreement:
1196 (Aa) the management agreement permits a simple majority of owners of the real
1197 property estate to not renew or to terminate the management agreement at the earlier of the end
1198 of the management agreement's current term, or 180 days after the day on which the owners
1199 give notice of termination to the manager;
1200 (Bb) the management agreement prohibits, directly or indirectly, the lending of the
1201 proceeds earned from the real property estate or the use or pledge of its assets to a person or
1202 entity affiliated with or under common control of the manager; and
1203 (Cc) the management agreement complies with any other requirement imposed by rule
1204 by the Real Estate Commission under Section [
1205 (iii) For purposes of Subsection (1)(ee)(ii)(B), evidence that members vote or have the
1206 right to vote, or the right to information concerning the business and affairs of the limited
1207 liability company, or the right to participate in management, may not establish, without more,
1208 that all members are actively engaged in the management of the limited liability company.
1209 (ff) "State" means a state, territory, or possession of the United States, the District of
1210 Columbia, and Puerto Rico.
1211 (gg) (i) "Undivided fractionalized long-term estate" means an ownership interest in
1212 real property by two or more persons that is a:
1213 (A) tenancy in common; or
1214 (B) any other legal form of undivided estate in real property including:
1215 (I) a fee estate;
1216 (II) a life estate; or
1217 (III) other long-term estate.
1218 (ii) "Undivided fractionalized long-term estate" does not include a joint tenancy.
1219 (hh) "Whole long-term estate" means a person owns or persons through joint tenancy
1220 own real property through:
1221 (i) a fee estate;
1222 (ii) a life estate; or
1223 (iii) other long-term estate.
1224 (ii) "Working days" means 8 a.m. to 5 p.m., Monday through Friday, exclusive of
1225 legal holidays listed in Section 63G-1-301 .
1226 (2) A term not defined in this section shall have the meaning as established by
1227 division rule. The meaning of a term neither defined in this section nor by rule of the division
1228 shall be the meaning commonly accepted in the business community.
1229 (3) (a) This Subsection (3) applies to:
1230 (i) the offer or sale of a real property estate exempted from the definition of security
1231 under Subsection (1)(ee)(ii)(C); or
1232 (ii) the offer or sale of an undivided fractionalized long-term estate that is the offer of
1233 a security.
1234 (b) A person who, directly or indirectly receives compensation in connection with the
1235 offer or sale as provided in this Subsection (3) of a real property estate is not an agent,
1236 broker-dealer, investment adviser, or investment adviser representative under this chapter if
1237 that person is licensed under Chapter [
1238 and Practices Act, as:
1239 (i) a principal [
1240 (ii) an associate [
1241 (iii) a [
1242 (4) The list of real property estates excluded from the definition of securities under
1243 Subsection (1)(ee)(ii)(C) is not an exclusive list of real property estates or interests that are not
1244 a security.
1245 Section 18. Section 61-2-101 is enacted to read:
1246
1247
1248 61-2-101. Title.
1249 This chapter is known as the "Division of Real Estate."
1250 Section 19. Section 61-2-102 is enacted to read:
1251 61-2-102. Definitions.
1252 As used in this chapter:
1253 (1) "Department" means the Department of Commerce.
1254 (2) "Director" means the director of the division appointed under Section 61-2-201 .
1255 (3) "Division" means the Division of Real Estate created in Section 61-2-201 .
1256 (4) "Executive director" means the executive director of the department appointed
1257 under Section 13-1-3 .
1258 Section 20. Section 61-2-201 , which is renumbered from Section 61-2-5 is
1259 renumbered and amended to read:
1260
1261 [
1262 Personnel.
1263 (1) There is created within the [
1264 Real Estate. [
1265 (a) this chapter;
1266 (b) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act;
1267 (c) Title 57, Chapter 19, Timeshare and Camp Resort Act;
1268 (d) Title 57, Chapter 23, Real Estate Cooperative Marketing Act;
1269 [
1270 [
1271 [
1272 [
1273 Act[
1274 (h) Chapter 2f, Real Estate Licensing and Practices Act.
1275 (2) The division is under the direction and control of a director appointed by the
1276 executive director of the department with the approval of the governor. The director holds the
1277 office of director at the pleasure of the governor.
1278 (3) The director, with the approval of the executive director, may employ personnel
1279 necessary to discharge the duties of the division at salaries to be fixed by the director
1280 according to standards established by the Department of Administrative Services.
1281 [
1282
1283
1284 [
1285
1286
1287 Section 21. Section 61-2-202 is enacted to read:
1288 61-2-202. Powers and duties of the director or division.
1289 (1) On or before October 1 of each year, in conjunction with the department, the
1290 director shall report to the governor and the Legislature concerning the division's work for the
1291 fiscal year immediately preceding the report.
1292 (2) In conjunction with the executive director, the director shall prepare and submit to
1293 the governor and the Legislature a budget for the fiscal year that follows the convening of the
1294 Legislature.
1295 Section 22. Section 61-2-203 , which is renumbered from Section 61-2-5.1 is
1296 renumbered and amended to read:
1297 [
1298 The [
1299
1300 [
1301 Section 23. Section 61-2-204 , which is renumbered from Section 61-2-28 is
1302 renumbered and amended to read:
1303 [
1304 (1) For purposes of this section, "account" means the Utah Housing Opportunity
1305 Restricted Account created by this section.
1306 [
1307 Housing Opportunity Restricted Account."
1308 [
1309 (a) contributions deposited into the [
1310 account in accordance with Section 41-1a-422 ;
1311 (b) private contributions; and
1312 (c) donations or grants from public or private entities.
1313 [
1314 [
1315 to Title 51, Chapter 7, State Money Management Act.
1316 (b) The Division of Finance shall deposit interest or other earnings derived from
1317 investment of account [
1318 [
1319 [
1320 charitable organizations that:
1321 (a) [
1322 and
1323 (b) have as a primary part of their mission to provide support to organizations that
1324 create affordable housing for those in severe need.
1325 [
1326 if it is:
1327 (a) proposed by an organization [
1328 (b) designed to provide support to organizations that create affordable housing for
1329 those in severe need.
1330 [
1331 division to receive a distribution in accordance with Subsection [
1332 (b) An organization that receives a distribution from the division in accordance with
1333 Subsection [
1334 create affordable housing for those in severe need.
1335 [
1336 Act, the division shall make rules providing procedures for an organization to apply to receive
1337 [
1338 Section 24. Section 61-2b-2 is amended to read:
1339 61-2b-2. Definitions.
1340 (1) As used in this chapter:
1341 (a) (i) "Appraisal" means an unbiased analysis, opinion, or conclusion relating to the
1342 nature, quality, value, or utility of a specified interest in, or aspect of, identified real estate or
1343 identified real property.
1344 (ii) An appraisal is classified by the nature of the assignment as a valuation appraisal,
1345 an analysis assignment, or a review assignment in accordance with the following definitions:
1346 (A) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that
1347 relates to the nature, quality, or utility of identified real estate or identified real property.
1348 (B) "Review assignment" means an unbiased analysis, opinion, or conclusion that
1349 forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an
1350 analysis assignment.
1351 (C) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
1352 estimates the value of an identified parcel of real estate or identified real property at a
1353 particular point in time.
1354 (b) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as
1355 an Illinois not-for-profit corporation on November 30, 1987.
1356 (c) (i) "Appraisal report" means a communication, written or oral, of an appraisal.
1357 (ii) An appraisal report is classified by the nature of the assignment as a valuation
1358 report, analysis report, or review report in accordance with the definitions provided in
1359 Subsection (1)(a)(ii).
1360 (iii) The testimony of a person relating to the person's analyses, conclusions, or
1361 opinions concerning identified real estate or identified real property is considered to be an oral
1362 appraisal report.
1363 (d) "Appraisal Qualification Board" means the Appraisal Qualification Board of the
1364 Appraisal Foundation.
1365 [
1366 that is established in Section 61-2b-7 .
1367 [
1368 certified by a state-certified general appraiser or state-certified residential appraiser.
1369 (g) "Concurrence" means that the entities that are given a concurring role jointly agree
1370 to an action.
1371 [
1372 valuation service analysis, opinion, conclusion, or other service that does not fall within the
1373 definition of appraisal.
1374 (B) "Consultation service" does not mean a valuation appraisal, analysis assignment,
1375 or review assignment.
1376 (ii) Regardless of the intention of the client or employer, if a person prepares an
1377 unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
1378 be an appraisal and not a consultation service.
1379 [
1380 which is dependent on or conditioned by:
1381 (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
1382 performing the analysis, opinion, or conclusion; or
1383 (ii) achieving a result specified by the person requesting the analysis, opinion, or
1384 conclusion.
1385 [
1386 Commerce.
1387 [
1388 required by federal law or by federal regulation to be supported by an appraisal prepared by:
1389 (i) a state-licensed appraiser; or
1390 (ii) a state-certified appraiser.
1391 [
1392 improvements if any.
1393 [
1394 appraisal of real estate or real property and preparing an appraisal report.
1395 [
1396 (i) the sale, lease, purchase, investment in, or exchange of real property or an interest
1397 in real property, or the financing of such a transaction;
1398 (ii) the refinancing of real property or an interest in real property; or
1399 (iii) the use of real property or an interest in real property as security for a loan or
1400 investment, including mortgage-backed securities.
1401 [
1402 inherent in the ownership of real estate.
1403 [
1404 certification as a state-certified general appraiser issued under this chapter.
1405 [
1406 valid certification as a state-certified residential real estate appraiser issued under this chapter.
1407 [
1408 as a state-licensed appraiser issued under this chapter.
1409 [
1410 (i) does not hold an appraiser license or appraiser certification issued under this
1411 chapter;
1412 (ii) works under the direct supervision of a state-certified appraiser to earn experience
1413 for licensure; and
1414 (iii) is registered as a trainee under this chapter.
1415 [
1416 conclusion relating to the nature, quality, value, or utility of identified real estate or identified
1417 real property that is prepared by a person who is employed or retained to act, or would be
1418 perceived by third parties or the public as acting, as a disinterested third party in rendering the
1419 analysis, opinion, or conclusion.
1420 (2) (a) If a term not defined in this section is defined by rule, the term shall have the
1421 meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
1422 Utah Administrative Rulemaking Act.
1423 (b) If a term not defined in this section is not defined by rule, the term shall have the
1424 meaning commonly accepted in the business community.
1425 Section 25. Section 61-2b-3 is amended to read:
1426 61-2b-3. License or certification required.
1427 (1) Except as provided in Subsection (2) and in Subsection 61-2b-6 (2), it is unlawful
1428 for [
1429 a certified appraisal report, or perform a consultation service relating to real estate or real
1430 property in this state without first being licensed or certified in accordance with this chapter.
1431 (2) This section does not apply to:
1432 (a) a [
1433 Section [
1434
1435 (i) regarding the value of real estate;
1436 (ii) to a potential seller or third party recommending a listing price of real estate; or
1437 (iii) to a potential buyer or third party recommending a purchase price of real estate;
1438 (b) an employee of a company who states an opinion of value or prepares a report
1439 containing value conclusions relating to real estate or real property solely for the company's
1440 use;
1441 (c) [
1442 the scope of the official's or employee's duties, unless otherwise required by Utah law;
1443 (d) an auditor or accountant who states an opinion of value or prepares a report
1444 containing value conclusions relating to real estate or real property while performing an audit;
1445 (e) an individual, except an individual who is required to be licensed or certified under
1446 this chapter, who states an opinion about the value of property in which the person has an
1447 ownership interest;
1448 (f) an individual who states an opinion of value if no consideration is paid or agreed to
1449 be paid for the opinion and no other party is reasonably expected to rely on the individual's
1450 appraisal expertise;
1451 (g) an individual, such as a researcher or a secretary, who does not render significant
1452 professional assistance, as defined by the board, in arriving at a real estate appraisal analysis,
1453 opinion, or conclusion; or
1454 (h) an attorney authorized to practice law in this state who, in the course of the
1455 attorney's practice, uses an appraisal report governed by this chapter or who states an opinion
1456 of the value of real estate.
1457 (3) An opinion of value or report containing value conclusions exempt under
1458 Subsection (2) may not be referred to as an appraisal.
1459 Section 26. Section 61-2b-6 is amended to read:
1460 61-2b-6. Duties and powers of division.
1461 (1) The division has the powers and duties listed in this Subsection (1).
1462 (a) The division shall:
1463 (i) receive an application for licensing, certification, or registration;
1464 (ii) establish appropriate administrative procedures for the processing of an
1465 application for licensure, certification, or registration;
1466 (iii) issue a license or certification to a qualified applicant pursuant to this chapter;
1467 and
1468 (iv) register an individual who applies and qualifies for registration as a trainee under
1469 this chapter.
1470 (b) (i) The division shall require an individual to register with the division as a trainee
1471 [
1472 licensure.
1473 (ii) Subject to Subsection (4), the board shall adopt rules in accordance with Title
1474 63G, Chapter 3, Utah Administrative Rulemaking Act, for:
1475 (A) the trainee registration required by this Subsection (1)(b); and
1476 (B) renewal of the trainee registration required by this Subsection (1)(b).
1477 (c) The division shall hold public hearings under the direction of the board.
1478 (d) The division may:
1479 (i) solicit bids and enter into contracts with one or more educational testing services or
1480 organizations for the preparation of a bank of questions and answers [
1481
1482 (ii) administer or contract for the administration of licensing and certification
1483 examinations as may be required to carry out the division's responsibilities under this chapter.
1484 (e) The division shall provide administrative assistance to the board by providing to
1485 the board the facilities, equipment, supplies, and personnel that are required to enable the
1486 board to carry out the board's responsibilities under this chapter.
1487 [
1488
1489 [
1490 education available to a person licensed [
1491 [
1492 explanation of the Uniform Standards of Professional Appraisal Practice as required by
1493 Section 61-2b-27 when an interpretation or explanation becomes necessary in the enforcement
1494 of this chapter.
1495 [
1496 (i) for processing:
1497 [
1498 [
1499 [
1500 (ii) for [
1501 (i) If a person pays a fee or costs to the division with a negotiable instrument and the
1502 negotiable instrument is not honored for payment:
1503 (i) the transaction for which the payment is submitted is voidable by the division;
1504 (ii) the division may reverse the transaction if payment of the applicable fee or costs is
1505 not received in full; and
1506 (iii) the person's license, certification, or registration is automatically suspended:
1507 (A) beginning the day on which the payment is due; and
1508 (B) ending the day on which payment is made in full.
1509 (j) The division may:
1510 (i) investigate a complaint against:
1511 [
1512 [
1513 [
1514 (ii) subpoena a witness;
1515 (iii) subpoena the production of a book, paper, document, record, [
1516 contract, or evidence;
1517 (iv) administer an oath; and
1518 (v) take testimony and receive evidence concerning a matter within the division's
1519 jurisdiction.
1520 (k) The division may:
1521 (i) promote research and conduct studies relating to the profession of real estate
1522 appraising; and
1523 (ii) sponsor real estate appraisal educational activities.
1524 (l) The division shall adopt, with the concurrence of the board, rules for the
1525 administration of this chapter pursuant to Title 63G, Chapter 3, Utah Administrative
1526 Rulemaking Act, that are not inconsistent with this chapter or the constitution and laws of this
1527 state or of the United States.
1528 (m) The division shall employ an appropriate staff to investigate allegations that a
1529 person required to be licensed, certified, or registered under this chapter fails to comply with
1530 this chapter.
1531 (n) The division may employ other professional, clerical, and technical staff as may be
1532 necessary to properly administer the work of the division under this chapter.
1533 (o) [
1534
1535 the names and addresses of [
1536 under this chapter [
1537
1538 (ii) A person who requests a list under this Subsection (1)(o) shall pay the costs
1539 incurred by the division to make the list available.
1540 (2) (a) The division shall approve an expert witness who is not otherwise licensed or
1541 certified under this chapter to appear in an administrative or judicial tax proceeding to provide
1542 evidence related to the valuation of real property that is assessed by the State Tax
1543 Commission, [
1544 (i) approval is limited to a specific proceeding;
1545 (ii) approval is valid until the proceeding becomes final;
1546 (iii) applicant pays to the division an approval fee [
1547 accordance with Section 63J-1-504 ;
1548 (iv) applicant provides the applicant's name, address, occupation, and professional
1549 credentials; and
1550 (v) applicant provides a notarized statement that:
1551 (A) the applicant is competent to render an appraisal and to testify as an expert witness
1552 in the proceeding; and
1553 (B) the appraisal and testimony to be offered shall be in accordance with the Uniform
1554 Standards of Professional Appraisal Practice adopted by the board.
1555 (b) Subsection (2)(a) [
1556 tax proceeding related to the valuation of real property that is assessed by the State Tax
1557 Commission.
1558 (3) (a) If the conditions of Subsection (3)(b) are met, the division is immune from any
1559 civil action or criminal prosecution for initiating or assisting in a lawful investigation of an act
1560 of, or participating in a disciplinary proceeding concerning:
1561 (i) a person required to be licensed, certified, or registered pursuant to this chapter; or
1562 (ii) a person approved as an expert witness pursuant to this chapter.
1563 (b) This Subsection (3) applies if the division takes the action:
1564 (i) without malicious intent; and
1565 (ii) in the reasonable belief that the action is taken pursuant to the powers and duties
1566 vested in the division under this chapter.
1567 (4) (a) An individual applying to register as a trainee under this chapter shall:
1568 (i) submit a fingerprint card in a form acceptable to the division at the time of
1569 applying for registration; and
1570 (ii) consent to a criminal background check by:
1571 (A) the Utah Bureau of Criminal Identification; and
1572 (B) the Federal Bureau of Investigation.
1573 (b) The division shall request the Department of Public Safety to complete a Federal
1574 Bureau of Investigation criminal background check for an applicant through a national
1575 criminal history system.
1576 (c) The applicant shall pay the cost of:
1577 (i) the fingerprinting required by this section; and
1578 (ii) the criminal background check required by this section.
1579 (d) (i) A registration as a trainee under this chapter is conditional pending completion
1580 of the criminal background check required by this Subsection (4).
1581 (ii) [
1582
1583 criminal background check discloses that the applicant fails to accurately disclose a criminal
1584 history involving:
1585 (A) the appraisal industry;
1586 (B) fraud;
1587 (C) misrepresentation; or
1588 (D) deceit.
1589 (iii) If a criminal background check discloses that an applicant fails to accurately
1590 disclose a criminal history other than one described in Subsection (4)(d)(ii), the division:
1591 (A) shall review the application; and
1592 (B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
1593 Utah Administrative Rulemaking Act, may:
1594 (I) place one or more conditions on a registration;
1595 (II) place one or more restrictions on a registration;
1596 (III) revoke a registration; or
1597 (IV) refer the application to the board for a decision.
1598 [
1599 Subsection (4)(d)(ii) or whose registration is conditioned, restricted, or revoked under
1600 Subsection (4)(d)(iii) may appeal the [
1601 (A) after the [
1602 (B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
1603 [
1604 authority to conduct a hearing described in Subsection (4)(d)[
1605 [
1606 granted only if:
1607 (A) the criminal history upon which the division [
1608 (I) did not occur; or
1609 (II) is the criminal history of another person;
1610 (B) (I) the revocation is based on a failure to accurately disclose a criminal history;
1611 and
1612 (II) the applicant has a reasonable good faith belief at the time of application that there
1613 was no criminal history to be disclosed; or
1614 (C) the division fails to follow the prescribed procedure for the revocation.
1615 (e) If a registration is revoked or a revocation is upheld after a hearing described in
1616 Subsection (4)(d)[
1617 period of 12 months after the day on which the registration is revoked.
1618 (f) The board may delegate to the division the authority to make a decision on whether
1619 relief from a revocation should be granted.
1620 (g) [
1621 check [
1622 Section 27. Section 61-2b-8 is amended to read:
1623 61-2b-8. Duties of board.
1624 (1) (a) The board shall provide technical assistance to the division relating to real
1625 estate appraisal standards and real estate appraiser qualifications.
1626 (b) The board has the powers and duties listed in this section.
1627 (2) The board shall:
1628 (a) determine the experience[
1629 appropriate for a person licensed under this chapter;
1630 (b) determine the experience[
1631 appropriate for a person certified under this chapter:
1632 (i) in compliance with the minimum requirements of Financial Institutions Reform,
1633 Recovery, and Enforcement Act of 1989; and
1634 (ii) consistent with the intent of this chapter;
1635 (c) determine the appraisal related acts that may be performed by:
1636 (i) a trainee on the basis of the trainee's education and experience;
1637 (ii) clerical staff; and
1638 (iii) a person who:
1639 (A) does not hold a license or certification; and
1640 (B) assists an appraiser licensed or certified under this chapter in providing appraisal
1641 services or consultation services;
1642 (d) determine the procedures for a trainee to register and to renew a registration with
1643 the division; and
1644 (e) develop one or more programs to upgrade and improve the experience, education,
1645 and examinations as required under this chapter.
1646 (3) (a) The experience[
1647 by the board for a person licensed or certified under this chapter shall be the minimum criteria
1648 established by the [
1649 unless, after notice and a public hearing held in accordance with Title 63G, Chapter 3, Utah
1650 Administrative Rulemaking Act, the board finds that the minimum criteria are not appropriate
1651 for a state-licensed appraiser or a state-certified appraiser in this state.
1652 (b) If under Subsection (3)(a) the board makes a finding that the minimum criteria are
1653 not appropriate, the board shall recommend appropriate criteria to the Legislature.
1654 (4) The board shall:
1655 (a) determine the continuing education requirements appropriate for the renewal of a
1656 license, certification, or registration issued under this chapter, except that the continuing
1657 education requirements established by the board shall at least meet the minimum criteria
1658 established by the Appraisal Qualification Board;
1659 (b) develop one or more programs to upgrade and improve continuing education; and
1660 (c) recommend to the division one or more available continuing education courses that
1661 meet the requirements of this chapter.
1662 (5) (a) The board shall consider the proper interpretation or explanation of the
1663 Uniform Standards of Professional Appraisal Practice as required by Section 61-2b-27 when:
1664 (i) an interpretation or explanation is necessary in the enforcement of this chapter; and
1665 (ii) the Appraisal Standards Board of the Appraisal Foundation has not issued an
1666 interpretation or explanation.
1667 (b) If the conditions of Subsection (5)(a) are met, the board shall recommend to the
1668 division the appropriate interpretation or explanation that the division should adopt as a rule
1669 under this chapter.
1670 (c) The board may by rule made in accordance with Title 63G, Chapter 3, Utah
1671 Administrative Rulemaking Act, and Section 61-2b-27 provide for an exemption from a
1672 provision of the Uniform Standards of Professional Appraisal Practice for an activity engaged
1673 in on behalf of a governmental entity.
1674 [
1675
1676 [
1677 [
1678
1679 [
1680
1681 [
1682
1683 [
1684 board to an administrative law judge, in connection with a disciplinary proceeding under
1685 Sections 61-2b-30 and 61-2b-31 concerning:
1686 (i) a person required to be licensed, certified, or registered under this chapter; and
1687 (ii) the person's failure to comply with this chapter and the Uniform Standards of
1688 Professional Appraisal Practice as adopted under Section 61-2b-27 .
1689 (b) The board shall issue in an administrative hearing a decision that contains findings
1690 of fact and conclusions of law.
1691 (c) When a determination is made that a person required to be licensed, certified, or
1692 registered under this chapter has violated this chapter, the division shall implement
1693 disciplinary action determined by the board.
1694 [
1695 for a disciplinary proceeding concerning a person required to be registered, licensed, certified,
1696 or approved as an expert under this chapter if the action is taken without malicious intent and
1697 in the reasonable belief that the action taken was taken pursuant to the powers and duties
1698 vested in a member of the board under this chapter.
1699 [
1700 honesty, competency, integrity, and truthfulness of an applicant for:
1701 (a) original licensure, certification, or registration; and
1702 (b) renewal licensure [
1703 Section 28. Section 61-2b-10 is amended to read:
1704 61-2b-10. State-licensed appraiser -- Authority and qualifications.
1705 (1) A state-licensed appraiser is authorized to appraise complex and noncomplex 1-4
1706 family residential units in this state having a transaction value permitted under the Financial
1707 Institutions Reform, Recovery, and Enforcement Act of 1989, and related federal regulations.
1708 (2) A state-licensed appraiser is authorized to appraise vacant or unimproved land
1709 having a transaction value permitted under the Financial Institutions Reform, Recovery, and
1710 Enforcement Act of 1989, and related federal regulations that is utilized for 1-4 family
1711 purposes or for which the highest and best use is 1-4 family purposes and subdivisions for
1712 which a development analysis/appraisal is not necessary.
1713 (3) A state-licensed appraiser may not issue a certified appraisal report.
1714 (4) To qualify as a state-licensed appraiser, an applicant must:
1715 (a) be of good moral character;
1716 (b) demonstrate honesty, competency, integrity, and truthfulness;
1717 [
1718 [
1719 [
1720 [
1721 (i) real estate appraisal;
1722 (ii) the Uniform Standards of Professional Appraisal Practice; and
1723 (iii) ethical rules to be observed by a real estate appraiser as required by Section
1724 61-2b-27 ; and
1725 [
1726 appraisal as established by rule.
1727 (5) The courses of study under Subsection (4)[
1728 (a) a college or university;
1729 (b) a community or junior college;
1730 (c) a real estate appraisal or real estate related organization;
1731 (d) a state or federal agency or commission;
1732 (e) a proprietary school;
1733 (f) a provider approved by a state certification and licensing agency; or
1734 (g) the Appraisal Foundation or its boards.
1735 [
1736
1737 Section 29. Section 61-2b-14 is amended to read:
1738 61-2b-14. State-certified residential appraiser -- Application.
1739 (1) [
1740 division evidence of:
1741 (a) the applicant's good moral character, honesty, competency, integrity, and
1742 truthfulness;
1743 [
1744 determined by the [
1745 [
1746 (A) college;
1747 (B) junior college;
1748 (C) community college; or
1749 (D) university; or
1750 (ii) [
1751 subject matter courses from an accredited:
1752 (A) college;
1753 (B) junior college;
1754 (C) community college; or
1755 (D) university;
1756 [
1757 curriculum:
1758 (i) of specific appraisal education determined by rule made by the board; and
1759 (ii) that includes a course in the Uniform Standards of Professional Practice or its
1760 equivalent that [
1761 [
1762
1763 [
1764 established by rule; and
1765 [
1766 (1)(e) within a reasonable period, as determined by rule, immediately preceding the filing of
1767 the application for certification.
1768 (2) Upon request by the division, [
1769 division for examination:
1770 (a) a detailed listing of the real estate appraisal reports or file memoranda for each year
1771 for which experience is claimed; and
1772 (b) a sample selected by the division of appraisal reports that the applicant has
1773 prepared in the course of the applicant's appraisal practice.
1774 (3) The classroom hours required by Subsection (1)[
1775 (a) a college or university;
1776 (b) a community or junior college;
1777 (c) a real estate appraisal or real estate related organization;
1778 (d) a state or federal agency or commission;
1779 (e) a proprietary school;
1780 (f) a provider approved by a state certification and licensing agency; or
1781 (g) the Appraisal Foundation or its boards.
1782 Section 30. Section 61-2b-15 is amended to read:
1783 61-2b-15. State-certified general appraiser -- Application -- Qualifications.
1784 (1) [
1785 division evidence of:
1786 (a) the applicant's good moral character, honesty, competency, integrity, and
1787 truthfulness;
1788 [
1789 determined by the [
1790 [
1791 university; or
1792 (ii) [
1793 subject matter courses from an accredited:
1794 (A) college;
1795 (B) junior college;
1796 (C) community college; or
1797 (D) university;
1798 [
1799 curriculum:
1800 (i) of specific appraisal education determined by rule; and
1801 (ii) that includes a course in the Uniform Standards of Professional Practice or its
1802 equivalent that has been approved by the Appraisal [
1803
1804
1805 [
1806 established by rule; and
1807 [
1808 (1)(e) within a reasonable period, as determined by rule, immediately preceding the filing of
1809 the application for certification.
1810 (2) Upon request by the division, [
1811 division for examination:
1812 (a) a detailed listing of the real estate appraisal reports or file memoranda for each year
1813 for which experience is claimed; and
1814 (b) a sample selected by the division of appraisal reports that the applicant has
1815 prepared in the course of the applicant's appraisal practice.
1816 (3) The classroom hours required by Subsection (1)[
1817 (a) a college or university;
1818 (b) a community or junior college;
1819 (c) a real estate appraisal or real estate related organization;
1820 (d) a state or federal agency or commission;
1821 (e) a proprietary school;
1822 (f) a provider approved by a state certification and licensing agency; or
1823 (g) the Appraisal Foundation or its boards.
1824 Section 31. Section 61-2b-17 is amended to read:
1825 61-2b-17. State-certified and state-licensed appraisers -- Restrictions on use of
1826 terms -- Conduct prohibited or required -- Trainee.
1827 (1) (a) The terms "state-certified general appraiser," "state-certified residential
1828 appraiser," and "state-licensed appraiser":
1829 (i) may only be used to refer to an individual who is certified or licensed under this
1830 chapter; and
1831 (ii) may not be used following, or immediately in connection with, the name or
1832 signature of a firm, partnership, corporation, or group, or in any manner that it might be
1833 interpreted as referring to a firm, partnership, corporation, group, or to anyone other than the
1834 individual who is certified or licensed under this chapter.
1835 (b) The requirement of this Subsection (1) may not be construed to prevent a
1836 state-certified general appraiser from signing an appraisal report on behalf of a corporation,
1837 partnership, firm, or group practice if it is clear that:
1838 (i) only the individual is certified; and
1839 (ii) the corporation, partnership, firm, or group practice is not certified.
1840 (c) Except as provided in Section 61-2b-25 , a certificate or license may not be issued
1841 under this chapter to a corporation, partnership, firm, or group.
1842 (2) (a) A person other than a state-certified general appraiser or state-certified
1843 residential appraiser, may not assume or use any title, designation, or abbreviation likely to
1844 create the impression of certification in this state as a real estate appraiser.
1845 (b) A person other than a state-licensed appraiser may not assume or use any title,
1846 designation, or abbreviation likely to create the impression of licensure in this state as a real
1847 estate appraiser.
1848 (3) (a) Only an individual who has qualified under the certification requirements of
1849 this chapter is authorized to prepare and sign a certified appraisal report relating to real estate
1850 or real property in this state.
1851 (b) If a certified appraisal report is prepared and signed by a state-certified residential
1852 appraiser, the certified appraisal report shall state, immediately following the signature on the
1853 report, "State-Certified Residential Appraiser."
1854 (c) If a certified appraisal report is prepared and signed by a state-certified general
1855 appraiser, the certified appraisal report shall state, immediately following the signature on the
1856 report, "State-Certified General Appraiser."
1857 (d) An appraisal report prepared by a state-licensed appraiser shall state, immediately
1858 following the signature on the report, "State-Licensed Appraiser."
1859 (e) When signing a certified appraisal report, a state-certified appraiser shall also place
1860 on the report, immediately below the state-certified appraiser's signature the state-certified
1861 appraiser's certificate number and its expiration date.
1862 (f) A state-certified residential appraiser may not prepare a certified appraisal report
1863 outside the state-certified residential appraiser's authority as defined in Section 61-2b-13 .
1864 (g) A state-licensed appraiser who assisted in the preparation of a certified appraisal
1865 report is authorized to cosign the certified appraisal report.
1866 (4) A person who has not qualified under this chapter may not describe or refer to any
1867 appraisal or appraisal report relating to real estate or real property in this state by the terms
1868 "certified appraisal" or "certified appraisal report."
1869 (5) If a trainee assists [
1870 preparation of an appraisal report, the appraisal report shall disclose:
1871 (a) the trainee's name; and
1872 (b) the extent to which the trainee assists in the preparation of the appraisal report.
1873 Section 32. Section 61-2b-18 is amended to read:
1874 61-2b-18. Application for licensure, certification, or registration -- Approval as
1875 an expert witness.
1876 (1) An application for the following shall be sent to the division on a form approved
1877 by the division:
1878 (a) original certification, licensure, or registration;
1879 (b) approval as an expert witness; and
1880 (c) renewal of certification [
1881 (2) The payment of the appropriate fee, as [
1882 concurrence of the board, in accordance with Section 63J-1-504 , must accompany an
1883 application for:
1884 (a) approval as an expert witness;
1885 (b) original certification, licensure, or registration; and
1886 (c) renewal of certification [
1887 (3) At the time of filing an application described in Subsection (1), an applicant shall:
1888 (a) sign a pledge to comply with the Uniform Standards of Professional Appraisal
1889 Practice and the ethical rules to be observed by an appraiser that are established under Section
1890 61-2b-27 for:
1891 (i) a certified or licensed appraiser;
1892 (ii) a trainee; or
1893 (iii) an expert witness approved under this chapter; and
1894 (b) certify that the applicant understands the types of misconduct, as set forth in this
1895 chapter, for which a disciplinary proceeding may be initiated against a person certified,
1896 licensed, or registered under this chapter.
1897 Section 33. Section 61-2b-19 is amended to read:
1898 61-2b-19. Expiration of license, certification, or registration.
1899 (1) [
1900 expires on the expiration date indicated on the license [
1901 (2) A renewal license [
1902 expires two years from the date of issuance.
1903 (3) (a) The scheduled expiration date of [
1904 registration shall appear on the license [
1905
1906 (b) (i) The division shall mail a holder of a license, certification, or registration notice
1907 of its expiration to the last address stated on the division's records as the holder's current
1908 address.
1909 (ii) To be mailed a notice under this Subsection (3)(b), a holder of a license,
1910 certification, or registration shall provide to the division in writing the holder's current address.
1911 (iii) A holder's license, certification, or registration expires if not renewed by the
1912 holder notwithstanding whether the holder receives a notice of its expiration by the division
1913 under this Subsection (3)(b).
1914 Section 34. Section 61-2b-20 is amended to read:
1915 61-2b-20. Renewal of license, certification, or registration.
1916 [
1917
1918
1919
1920 [
1921 (1) To renew a license, certification, or registration, before the license, certification, or
1922 registration expires, the holder of the license, certification, or registration shall submit to the
1923 division in compliance with procedures set by the division and the board:
1924 (a) an application for renewal;
1925 (b) a fee established by the division and the board, in accordance with Section
1926 63J-1-504 ; and
1927 (c) evidence in the form prescribed by the division of having completed the continuing
1928 education requirements for renewal specified in this chapter.
1929 [
1930 or before its expiration date.
1931 (b) For a period of 30 days after the expiration date, a license [
1932 registration may be reinstated upon:
1933 (i) payment of a renewal fee and a late fee determined by the division and the board;
1934 and
1935 (ii) satisfying the continuing education requirements specified in Section 61-2b-40 .
1936 (c) After the 30-day period described in Subsection [
1937 after the expiration date, [
1938 (i) paying a renewal fee and a reinstatement fee determined by the division and the
1939 board; and
1940 (ii) satisfying the continuing education requirements specified in Section 61-2b-40 .
1941 (d) After the six-month period described in Subsection [
1942 after the expiration date, [
1943 (i) paying a renewal fee and a reinstatement fee determined by the division and the
1944 board in accordance with Section 63J-1-504 ;
1945 (ii) providing proof acceptable to the division and the board of the person having
1946 satisfied the continuing education requirements of Section 61-2b-40 ; and
1947 (iii) providing proof acceptable to the division and the board of the person completing
1948 24 hours of continuing education:
1949 (A) in addition to the requirements in Section 61-2b-40 ; and
1950 (B) on a subject determined by the division by rule made in accordance with Title
1951 63G, Chapter 3, Utah Administrative Rulemaking Act.
1952 (e) The division shall relicense [
1953 renew that person's license [
1954 expiration date as prescribed for an original application.
1955 (f) Notwithstanding Subsection [
1956 license, certification, or registration that would expire under Subsection [
1957 the extension if:
1958 (i) the person complies with the requirements of this section to renew the license,
1959 certification, or registration; and
1960 (ii) at the time of the extension, there is pending under this chapter:
1961 (A) the application for renewal of the license, certification, or registration; or
1962 (B) a disciplinary action.
1963 [
1964 notify the division of the following by sending the division a signed statement within 10
1965 business days of:
1966 (a) (i) a conviction of a criminal offense;
1967 (ii) the entry of a plea in abeyance to a criminal offense; or
1968 (iii) the potential resolution of a criminal case by:
1969 (A) a diversion agreement; or
1970 (B) any other agreement under which a criminal charge is suspended for a period of
1971 time;
1972 (b) filing a personal bankruptcy or business bankruptcy;
1973 (c) the suspension, revocation, surrender, cancellation, or denial of a professional
1974 license, certification, or registration of the person, whether the license, certification, or
1975 registration is issued by this state or another jurisdiction; or
1976 (d) the entry of a cease and desist order or a temporary or permanent injunction:
1977 (i) against the person by a court or [
1978 (ii) on the basis of:
1979 (A) conduct or a practice involving an act regulated by this chapter; or
1980 (B) conduct involving fraud, misrepresentation, or deceit.
1981 Section 35. Section 61-2b-25 is amended to read:
1982 61-2b-25. Other law unaffected.
1983 [
1984 person approved, licensed, [
1985 practice of real estate appraising as a professional corporation or a limited liability company in
1986 accordance with:
1987 (1) Title 16, Chapter 11, Professional Corporation Act; or
1988 (2) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act.
1989 Section 36. Section 61-2b-28 is amended to read:
1990 61-2b-28. Enforcement -- Investigation -- Orders -- Hearings.
1991 (1) (a) The division may investigate the actions of:
1992 (i) a person registered, licensed, or certified under this chapter;
1993 (ii) an applicant for registration, licensure, or certification;
1994 (iii) an applicant for renewal of registration, licensure, or certification; or
1995 (iv) a person required to be registered, licensed, or certified under this chapter.
1996 (b) The division may initiate an agency action against a person described in
1997 Subsection (1)(a) in accordance with Title 63G, Chapter 4, Administrative Procedures Act, to:
1998 (i) impose disciplinary action;
1999 (ii) deny issuance to an applicant of:
2000 (A) an original registration, license, or certification; or
2001 (B) a renewal of a registration, license, or certification; or
2002 (iii) issue a cease and desist order as provided in Subsection (3).
2003 (2) (a) The division may:
2004 (i) administer an oath or affirmation;
2005 (ii) subpoena a witness or evidence;
2006 (iii) take evidence; and
2007 (iv) require the production of a book, paper, contract, record, [
2008 information, or evidence relevant to the investigation described in Subsection (1).
2009 (b) The division may serve a subpoena by certified mail.
2010 (c) A failure to respond to a request by the division in an investigation authorized
2011 under this chapter is considered to be a separate violation of this chapter, including:
2012 (i) failing to respond to a subpoena as a witness;
2013 (ii) withholding evidence; or
2014 (iii) failing to produce a book, paper, contract, document, information, or record.
2015 (d) (i) If a person is found to have violated this chapter or a rule made under this
2016 chapter, the person shall pay the costs incurred by the division to copy a book, paper, contract,
2017 document, information, or record required under this chapter, including the costs incurred to
2018 copy an electronic book, paper, contract, document, information, or record in a universally
2019 readable format.
2020 (ii) If a person fails to pay the costs described in Subsection (2)(d)(i) when due, the
2021 person's license, certification, or registration is automatically suspended:
2022 (A) beginning the day on which the payment of costs is due; and
2023 (B) ending the day on which the costs are paid.
2024 (3) (a) The director shall issue and serve upon a person an order directing that person
2025 to cease and desist from an act if:
2026 (i) the director has reason to believe that the person has been engaging, is about to
2027 engage, or is engaging in the act constituting a violation of this chapter; and
2028 (ii) it appears to the director that it would be in the public interest to stop the act.
2029 (b) Within 10 days after receiving the order, the person upon whom the order is served
2030 may request a hearing.
2031 (c) Pending a hearing requested under Subsection (3)(b), a cease and desist order shall
2032 remain in effect.
2033 (d) If a request for hearing is made, the division shall follow the procedures and
2034 requirements of Title 63G, Chapter 4, Administrative Procedures Act.
2035 (4) (a) After a hearing requested under Subsection (3), if the board agrees that an act
2036 of the person violates this chapter, the board:
2037 (i) shall issue an order making the cease and desist order permanent; and
2038 (ii) may impose another disciplinary action under Section 61-2b-29 .
2039 (b) The director shall commence an action in the name of the Department of
2040 Commerce and Division of Real Estate, in the district court in the county in which an act
2041 described in Subsection (3) occurs or where the person resides or carries on business, to enjoin
2042 and restrain the person from violating this chapter if:
2043 (i) (A) a hearing is not requested under Subsection (3); and
2044 (B) the person fails to cease the act described in Subsection (3); or
2045 (ii) after discontinuing the act described in Subsection (3), the person again
2046 commences the act.
2047 (5) A remedy or action provided in this section does not limit, interfere with, or prevent
2048 the prosecution of another remedy or action, including a criminal proceeding.
2049 Section 37. Section 61-2b-29 is amended to read:
2050 61-2b-29. Disciplinary action -- Grounds.
2051 (1) (a) The board may order disciplinary action against a person:
2052 (i) registered, licensed, or certified under this chapter; or
2053 (ii) required to be registered, licensed, or certified under this chapter.
2054 (b) On the basis of a ground listed in Subsection (2) for disciplinary action, board
2055 action may include:
2056 (i) revoking, suspending, or placing a person's registration, license, or certification on
2057 probation;
2058 (ii) denying a person's original registration, license, or certification;
2059 (iii) denying a person's renewal license [
2060 (iv) in the case of denial or revocation of a registration, license, or certification, setting
2061 a waiting period for an applicant to apply for a registration, license, or certification under this
2062 chapter;
2063 (v) ordering remedial education;
2064 (vi) imposing a civil penalty upon a person not to exceed the greater of:
2065 (A) [
2066 (B) the amount of any gain or economic benefit from a violation;
2067 (vii) issuing a cease and desist order;
2068 (viii) modifying an action described in Subsections (1)(b)(i) through (vii) if the board
2069 finds that the person complies with court ordered restitution; or
2070 (ix) doing any combination of Subsections (1)(b)(i) through (viii).
2071 (c) (i) If the board or division issues an order that orders a fine or educational
2072 requirements as part of the disciplinary action against a person, including a stipulation and
2073 order, the board or division shall state in the order the deadline by which the person shall
2074 comply with the fine or educational requirements.
2075 (ii) If a person fails to comply with a stated deadline:
2076 (A) the person's license, certificate, or registration is automatically suspended:
2077 (I) beginning on the day specified in the order as the deadline for compliance; and
2078 (II) ending the day on which the person complies in full with the order; and
2079 (B) if the person fails to pay a fine required by an order, the division may begin a
2080 collection process:
2081 (I) established by the division by rule made in accordance with Title 63G, Chapter 3,
2082 Utah Administrative Rulemaking Act; and
2083 (II) subject to Title 63A, Chapter 8, Office of State Debt Collection.
2084 (2) The following are grounds for disciplinary action under this section:
2085 (a) procuring or attempting to procure a registration, license, or certification under this
2086 chapter:
2087 (i) by fraud; or
2088 (ii) by making a false statement, submitting false information, or making a material
2089 misrepresentation in an application filed with the division;
2090 (b) paying money or attempting to pay money other than a fee provided for by this
2091 chapter to a member or employee of the division to procure a registration, license, or
2092 certification under this chapter;
2093 (c) an act or omission in the practice of real estate appraising that constitutes
2094 dishonesty, fraud, or misrepresentation;
2095 (d) entry of a judgment against a registrant, licensee, or certificate holder on grounds
2096 of fraud, misrepresentation, or deceit in the making of an appraisal of real estate;
2097 (e) a guilty plea to a criminal offense involving moral turpitude that is held in
2098 abeyance, or a conviction, including a conviction based upon a plea of guilty or nolo
2099 contendere, of a criminal offense involving moral turpitude;
2100 (f) engaging in the business of real estate appraising under an assumed or fictitious
2101 name not properly registered in this state;
2102 (g) paying a finder's fee or a referral fee to a person not licensed or certified under this
2103 chapter in connection with an appraisal of real estate or real property in this state;
2104 (h) making a false or misleading statement in:
2105 (i) that portion of a written appraisal report that deals with professional qualifications;
2106 or
2107 (ii) testimony concerning professional qualifications;
2108 (i) violating or disregarding:
2109 (i) [
2110 (ii) an order of the board; or
2111 (iii) a rule issued under this chapter;
2112 (j) violating the confidential nature of governmental records to which a person
2113 registered, licensed, certified, or approved as an expert under this chapter gained access
2114 through employment or engagement as an appraiser by a governmental agency;
2115 (k) accepting a contingent fee for performing an appraisal [
2116
2117 (i) the appraiser reporting a predetermined analysis, opinion, or conclusion;
2118 (ii) the analysis, opinion, conclusion, or valuation reached; or
2119 (iii) the consequences resulting from the appraisal assignment;
2120 (l) unprofessional conduct as defined by statute or rule;
2121 (m) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
2122 (i) providing a title insurance product or service without the approval required by
2123 Section 31A-2-405 ; or
2124 (ii) knowingly providing false or misleading information in the statement required by
2125 Subsection 31A-2-405 (2); or
2126 (n) other conduct that constitutes dishonest dealing.
2127 Section 38. Section 61-2b-30.5 is amended to read:
2128 61-2b-30.5. Reinstatement of license, certification, registration, approval --
2129 Expert witness -- Trainee.
2130 (1) An individual [
2131 approval is revoked under this chapter:
2132 (a) may not apply for renewal of that license, certification, registration, or approval;
2133 and
2134 (b) may apply for licensure, certification, registration, or approval as prescribed for an
2135 original license [
2136 Subsection (2).
2137 (2) An applicant for licensure, certification, registration, or approval as an expert
2138 witness under Subsection (1):
2139 (a) may not apply for licensure, certification, registration, or approval until at least five
2140 years after the date of revocation of the applicant's original license, certification, registration,
2141 or approval; and
2142 (b) is not entitled to credit for experience gained prior to the date of revocation in
2143 determining whether the applicant meets the experience requirement for licensure,
2144 certification, registration, or approval.
2145 (3) A person whose license or certification is revoked may not act as a trainee until at
2146 least four years after the day on which the person's license or certification is revoked.
2147 Section 39. Section 61-2b-32 is amended to read:
2148 61-2b-32. Registration, licensure, or certification prerequisite to suit for
2149 compensation.
2150 [
2151 the capacity of a real estate appraiser in this state may not bring or maintain [
2152 [
2153 real estate appraisal services for which registration, licensure, or certification is required by
2154 this chapter without alleging and proving that [
2155 registration, license, or certification in this state at all times during the performance of [
2156 the real estate appraisal services.
2157 Section 40. Section 61-2b-33 is amended to read:
2158 61-2b-33. Penalty for violating this chapter -- Automatic revocation.
2159 (1) In addition to being subject to a disciplinary action by the board, a person required
2160 to be licensed, certified, or registered under this chapter who violates this chapter:
2161 (a) is guilty of a class A misdemeanor, upon a conviction of a first violation of this
2162 chapter; and
2163 (b) is guilty of a third degree felony, upon conviction of a second or subsequent
2164 violation of this chapter.
2165 (2) A license [
2166 convicted of a violation of Section 76-6-1203 is automatically revoked.
2167 Section 41. Section 61-2b-36 is amended to read:
2168 61-2b-36. Contingent fees.
2169 (1) A person licensed or certified under this chapter who enters into an agreement to
2170 perform an appraisal [
2171 (2) A person licensed or certified under this chapter who enters into an agreement to
2172 provide consultation services [
2173 fixed fee or a contingent fee.
2174 (3) (a) If a person licensed or certified under this chapter enters into an agreement to
2175 perform consultation services for a contingent fee, this fact shall be clearly stated in each oral
2176 statement.
2177 (b) In addition to the requirements of Subsection (3)(a), if a person licensed or
2178 certified under this chapter prepares a written consultation report or summary, letter of
2179 transmittal, or certification statement for a contingent fee, the person shall clearly state in the
2180 report, summary, letter of transmittal, or certification statement that the report is prepared
2181 under a contingent fee arrangement.
2182 Section 42. Section 61-2b-39 is amended to read:
2183 61-2b-39. Registration, licensure, or certification history.
2184 The division may, upon payment of a fee [
2185 by the division in accordance with Section 63J-1-504 , issue to [
2186 [
2187 (1) [
2188 (2) [
2189 Section 43. Section 61-2b-40 is amended to read:
2190 61-2b-40. Continuing education requirements.
2191 (1) As a prerequisite to renewal of a license [
2192 applicant for renewal shall present evidence satisfactory to the division of having met the
2193 continuing education requirements of this section.
2194 (2) [
2195
2196
2197 preceding the filing of an application for renewal[
2198 instruction in courses or seminars that have received the approval of the [
2199 (3) The division may adopt rules for the implementation of this section to assure that
2200 each person renewing that person's license [
2201 has a working knowledge of current real estate appraisal theories, practices, and techniques
2202 that will enable the person to provide competent real estate appraisal services to the members
2203 of the public with whom that person deals in a professional relationship under the authority of
2204 that person's license [
2205 (4) An amendment or repeal of a rule adopted by the division under this section [
2206 does not operate to deprive a person of credit toward renewal of that person's license [
2207 certification, or registration for [
2208 the applicant [
2209 (5) In lieu of meeting the requirements set forth in Subsection (2) and applicable rules,
2210 an applicant for renewal may satisfy all or part of the continuing education requirements that
2211 are imposed by the board in excess of the minimum requirements of the Appraisal
2212 Qualification Board by presenting evidence of the following:
2213 (a) completion of an educational program of study determined by the board to be
2214 equivalent, for continuing education purposes, to courses or seminars approved by the board;
2215 or
2216 (b) participation other than as a student in educational processes and programs
2217 approved by the board that relate to real property appraisal theory, practices, or techniques
2218 including teaching, program development, and preparation of textbooks, monographs, articles,
2219 and other instructional materials.
2220 (6) The board shall develop and propose to the division rules [
2221
2222
2223
2224
2225
2226 developed and proposed by the board under this Subsection (6) shall prescribe:
2227 (a) policies and procedures to be followed in obtaining [
2228 courses of instruction and seminars;
2229 (b) standards, policies, and procedures to be used by the division in evaluating an
2230 applicant's claims of equivalency; and
2231 (c) standards, monitoring methods, and systems for recording attendance to be
2232 employed by course and seminar sponsors as a prerequisite to division approval of courses and
2233 seminars for credit.
2234 (7) (a) A person whose license [
2235 or suspended as the result of a disciplinary action taken by the board may not apply for
2236 reinstatement unless the person presents evidence of completion of the continuing education
2237 requirement that is [
2238 (b) The continuing education required under Subsection (7)(a) [
2239 imposed upon an applicant for reinstatement who has been required by the division to
2240 successfully complete the examination for licensure or certification required by Section
2241 61-2b-20 as a condition to reinstatement.
2242 Section 44. Section 61-2c-102 is amended to read:
2243 61-2c-102. Definitions.
2244 (1) As used in this chapter:
2245 [
2246
2247
2248 (a) "Affiliation" means that a mortgage loan originator is associated with a principal
2249 lending manager in accordance with Section 61-2c-209 .
2250 (b) "Applicant" means a person applying for a license under this chapter.
2251 (c) "Approved examination provider" means a person approved by the nationwide
2252 database as an approved test provider.
2253 (d) "Associate lending manager" means an individual who:
2254 (i) qualifies under this chapter as a principal lending manager; and
2255 (ii) works by or on behalf of another principal lending manager in transacting the
2256 business of residential mortgage loans.
2257 (e) "Branch office" means a licensed entity's office:
2258 (i) for the transaction of the business of residential mortgage loans regulated under this
2259 chapter;
2260 (ii) other than the main office of the licensed entity; and
2261 (iii) that operates under the same business name as the licensed entity.
2262 (f) (i) "Business of residential mortgage loans" means for compensation or in the
2263 expectation of compensation to:
2264 (A) engage in an act that makes an individual a mortgage loan originator;
2265 (B) make or originate a residential mortgage loan;
2266 (C) directly or indirectly solicit a residential mortgage loan for another; or
2267 (D) unless excluded under Subsection (1)(f)(ii), render services related to the
2268 origination of a residential mortgage loan including:
2269 (I) preparing a loan package;
2270 (II) communicating with the borrower and lender; or
2271 (III) advising on a loan term.
2272 (ii) "Business of residential mortgage loans" does not include:
2273 (A) if working as an employee under the direction of and subject to the supervision
2274 and instruction of a person licensed under this chapter, the performance of a clerical or support
2275 duty such as:
2276 (I) the receipt, collection, or distribution of information common for the processing or
2277 underwriting of a loan in the mortgage industry other than taking an application;
2278 (II) communicating with a consumer to obtain information necessary for the
2279 processing or underwriting of a residential mortgage loan;
2280 (III) word processing;
2281 (IV) sending correspondence; or
2282 (V) assembling files;
2283 (B) ownership of an entity that engages in the business of residential mortgage loans if
2284 the owner does not personally perform the acts listed in Subsection (1)(f)(i); or
2285 (C) except if an individual will engage in an activity as a mortgage loan originator,
2286 acting in one or more of the following capacities:
2287 (I) a loan wholesaler;
2288 (II) an account executive for a loan wholesaler;
2289 (III) a loan underwriter;
2290 (IV) a loan closer; or
2291 (V) funding a loan.
2292 (g) "Certified education provider" means a person who is certified under Section
2293 61-2c-204.1 to provide one or more of the following:
2294 (i) Utah-specific prelicensing education; or
2295 (ii) Utah-specific continuing education.
2296 (h) "Closed-end" means a loan:
2297 (i) with a fixed amount borrowed; and
2298 (ii) that does not permit additional borrowing secured by the same collateral.
2299 (i) "Commission" means the Residential Mortgage Regulatory Commission created in
2300 Section 61-2c-104 .
2301 (j) "Compensation" means anything of economic value that is paid, loaned, granted,
2302 given, donated, or transferred to an individual or entity for or in consideration of:
2303 (i) services;
2304 (ii) personal or real property; or
2305 (iii) another thing of value.
2306 (k) "Concurrence" means that entities given a concurring rule must jointly agree for
2307 the action to be taken.
2308 [
2309 under this chapter in order to meet the education requirements imposed by Sections
2310 61-2c-204.1 and 61-2c-205 to renew a license under this chapter.
2311 [
2312 directly or indirectly:
2313 (i) direct or exercise a controlling interest over:
2314 (A) the management or policies of an entity; or
2315 (B) the election of a majority of the directors, officers, managers, or managing partners
2316 of an entity;
2317 (ii) vote 20% or more of a class of voting securities of an entity by an individual; or
2318 (iii) vote more than 5% of a class of voting securities of an entity by another entity.
2319 (n) (i) "Control person" means an individual identified by an entity registered with the
2320 nationwide database as being the individual primarily responsible for directing the
2321 management or policies of the entity.
2322 (ii) "Control person" may include one of the following who is identified as provided in
2323 Subsection (1)(n)(i):
2324 (A) a manager;
2325 (B) a managing partner;
2326 (C) a director;
2327 (D) an executive officer; or
2328 (E) an individual who performs a function similar to an individual listed in this
2329 Subsection (1)(n)(ii).
2330 [
2331 [
2332 [
2333 [
2334 contains one to four units including any of the following if used as a residence:
2335 (i) a condominium unit;
2336 (ii) a cooperative unit;
2337 (iii) a manufactured home; or
2338 (iv) a house.
2339 [
2340 (i) a corporation;
2341 (ii) a limited liability company;
2342 (iii) a partnership;
2343 (iv) a company;
2344 (v) an association;
2345 (vi) a joint venture;
2346 (vii) a business trust;
2347 (viii) a trust; or
2348 (ix) another organization.
2349 [
2350 Commerce.
2351 (u) "Federal licensing requirements" means Secure and Fair Enforcement for Mortgage
2352 Licensing, 12 U.S.C. Sec. 5101 et seq.
2353 [
2354 placed when the holder of the license is not currently engaging in the business of residential
2355 mortgage loans.
2356 [
2357 [
2358 61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
2359 [
2360 originator" means an individual who for compensation or in expectation of compensation:
2361 (A) (I) takes a residential mortgage loan application; or
2362 [
2363 (B) is licensed as a mortgage loan originator in accordance with this chapter.
2364 (ii) "[
2365 (A) is described in Subsection (1)[
2366 administrative or clerical tasks as described in Subsection (1)(f)(ii)(A);
2367 [
2368
2369 [
2370 [
2371 (B) (I) is licensed under Chapter 2f, Real Estate Licensing and Practices Act;
2372 (II) performs only real estate brokerage activities; and
2373 (III) receives no compensation from:
2374 (Aa) a lender;
2375 (Bb) a principal lending manager; or
2376 (Cc) an agent of a lender or principal lending manager; or
2377 (C) is solely involved in extension of credit relating to a timeshare plan, as defined in
2378 11 U.S.C. Sec. 101(53D).
2379 [
2380
2381 [
2382 and Registry, authorized under [
2383
2384 [
2385 30-year fixed rate mortgage.
2386 [
2387 [
2388 be licensed under this chapter in order to meet the education requirements imposed by Section
2389 61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
2390 [
2391 lending manager under Section 61-2c-206 to transact the business of residential mortgage
2392 loans.
2393 (ii) An individual [
2394 business of residential mortgage loans as a mortgage [
2395 [
2396 (i) prepared, owned, received, or retained by a person; and
2397 (ii) (A) inscribed on a tangible medium; or
2398 (B) (I) stored in an electronic or other medium; and
2399 (II) [
2400 [
2401 (i) the loan or extension of credit is secured by a:
2402 (A) mortgage;
2403 (B) deed of trust; or
2404 (C) consensual security interest;
2405 (ii) the mortgage, deed of trust, or consensual security interest described in Subsection
2406 (1)[
2407 (A) is on a dwelling located in the state; and
2408 (B) is created with the consent of the owner of the residential real property; and
2409 (iii) solely for the purposes of defining "mortgage loan originator," the extension of
2410 credit is primarily for personal, family, or household use.
2411 (gg) "Sponsorship" means an association in accordance with Section 61-2c-209
2412 between an individual licensed under this chapter and an entity licensed under this chapter.
2413 [
2414 (i) a state, territory, or possession of the United States;
2415 (ii) the District of Columbia; or
2416 (iii) the Commonwealth of Puerto Rico.
2417 [
2418 (jj) "Utah-specific" means an educational or examination requirement under this
2419 chapter that relates specifically to Utah.
2420 (2) (a) If a term not defined in this section is defined by rule, the term shall have the
2421 meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
2422 Utah Administrative Rulemaking Act.
2423 (b) If a term not defined in this section is not defined by rule, the term shall have the
2424 meaning commonly accepted in the business community.
2425 Section 45. Section 61-2c-103 is amended to read:
2426 61-2c-103. Powers and duties of the division.
2427 (1) The division shall administer this chapter.
2428 (2) In addition to a power or duty expressly provided in this chapter, the division may:
2429 (a) receive and act on a complaint including:
2430 (i) taking action designed to obtain voluntary compliance with this chapter; or
2431 (ii) commencing an administrative or judicial proceeding on the division's own
2432 initiative;
2433 (b) establish one or more programs for the education of consumers with respect to
2434 residential mortgage loans;
2435 (c) (i) make one or more studies appropriate to effectuate the purposes and policies of
2436 this chapter; and
2437 (ii) make the results of the studies described in Subsection (2)(c)(i) available to the
2438 public;
2439 (d) visit and investigate a person licensed under this chapter, regardless of whether the
2440 person is located in Utah; and
2441 (e) employ one or more necessary hearing examiners, investigators, clerks, and other
2442 employees and agents.
2443 (3) The division shall make rules for the administration of this chapter in accordance
2444 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, including:
2445 (a) licensure procedures for:
2446 (i) a person required by this chapter to obtain a license with the division; and
2447 (ii) the establishment of a branch office by an entity;
2448 (b) proper handling of [
2449 (c) record-keeping requirements by a licensee, including proper disposal of a record;
2450 (d) certification procedures for certifying an education provider; and
2451 (e) standards of conduct for a licensee or certified education provider.
2452 (4) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
2453 Administrative Rulemaking Act, require as a condition of maintaining a license or
2454 certification under this chapter that a person comply with a requirement of the nationwide
2455 database if:
2456 (a) required for uniformity amongst states; and
2457 (b) not inconsistent with this chapter.
2458 (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
2459 Administrative Rulemaking Act, provide a process under which an individual may challenge
2460 information contained in the nationwide database.
2461 [
2462
2463 [
2464 [
2465 [
2466 (a) review the requirements related to the nationwide database imposed by federal
2467 [
2468 (i) the division;
2469 (ii) a licensee under this chapter;
2470 (iii) a certified education provider; or
2471 (iv) an approved examination provider; and
2472 (b) after the review required by Subsection [
2473 (i) report to the Business and Labor Interim Committee the impact of the requirements
2474 on the implementation by the division of this chapter; and
2475 (ii) recommend legislation, if any, to the Business and Labor Interim Committee
2476 related to how the division should coordinate with the nationwide database.
2477 [
2478 database or another entity designated by the nationwide database to do the following related to
2479 a licensee or other person subject to this chapter:
2480 (a) collect or maintain a record; and
2481 (b) process a transaction fee or other fee.
2482 [
2483 (a) a violation of this chapter;
2484 (b) disciplinary action under this chapter; and
2485 (c) other information relevant to this chapter.
2486 (9) If a person pays a fee or costs to the division with a negotiable instrument and the
2487 negotiable instrument is not honored for payment:
2488 (a) the transaction for which the payment is submitted is voidable by the division;
2489 (b) the division may reverse the transaction if payment of the applicable fee or costs is
2490 not received in full; and
2491 (c) the person's license, certification, or registration is automatically suspended:
2492 (i) beginning the day on which the payment is due; and
2493 (ii) ending the day on which payment is made in full.
2494 Section 46. Section 61-2c-104 is amended to read:
2495 61-2c-104. Residential Mortgage Regulatory Commission.
2496 (1) (a) There is created within the division the "Residential Mortgage Regulatory
2497 Commission" consisting of the following members appointed by the executive director with
2498 the approval of the governor:
2499 (i) four members who:
2500 (A) have at least three years of experience in transacting the business of residential
2501 mortgage loans; and
2502 (B) are licensed under this chapter at the time of and during appointment; and
2503 (ii) one member from the general public.
2504 (b) (i) The executive director with the approval of the governor may appoint an
2505 alternate member to the board.
2506 (ii) The alternate member shall:
2507 (A) at the time of the appointment, have at least three years of experience in
2508 transacting the business of residential mortgage loans; and
2509 (B) be licensed under this chapter at the time of and during appointment.
2510 (2) (a) Except as required by Subsection (2)(b), the executive director shall appoint a
2511 new member or reappointed member subject to appointment by the executive director to a
2512 four-year term ending June 30.
2513 (b) Notwithstanding the requirements of Subsection (2)(a), the executive director
2514 shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the
2515 terms of commission members are staggered so that approximately half of the commission is
2516 appointed every two years.
2517 (c) If a vacancy occurs in the membership of the commission for any reason, the
2518 executive director shall appoint a replacement for the unexpired term.
2519 (d) A member shall remain on the commission until the member's successor is
2520 appointed and qualified.
2521 (3) Members of the commission shall annually select one member to serve as chair.
2522 (4) (a) The commission shall meet at least quarterly.
2523 (b) The director may call a meeting in addition to the meetings required by Subsection
2524 (4)(a):
2525 (i) at the discretion of the director;
2526 (ii) at the request of the chair of the commission; or
2527 (iii) at the written request of three or more commission members.
2528 (5) (a) Three members of the commission constitute a quorum for the transaction of
2529 business.
2530 (b) If a quorum of members is unavailable for any meeting and an alternate member is
2531 appointed to the commission by the executive director with the approval of the governor, the
2532 alternate member shall serve as a regular member of the commission for that meeting if with
2533 the presence of the alternate member there is a quorum present at the meeting.
2534 (c) The action of a majority of a quorum present is an action of the commission.
2535 (6) (a) (i) A member who is not a government employee may not receive compensation
2536 or benefits for the member's services, but may receive per diem and expenses incurred in the
2537 performance of the member's official duties at the rates established by the Division of Finance
2538 under Sections 63A-3-106 and 63A-3-107 .
2539 (ii) A member who is not a government employee may decline to receive per diem and
2540 expenses for the member's service.
2541 (b) (i) A state government officer and employee member who does not receive salary,
2542 per diem, or expenses from the member's agency for the member's service may receive per
2543 diem and expenses incurred in the performance of the member's official duties from the
2544 commission at the rates established by the Division of Finance under Sections 63A-3-106 and
2545 63A-3-107 .
2546 (ii) A state government officer and employee member may decline to receive per diem
2547 and expenses for the member's service.
2548 (7) In addition to a duty or power expressly provided for elsewhere in this chapter, the
2549 commission shall:
2550 (a) except as provided in Subsection 61-2c-202 [
2551 denial of licensure of a person under this chapter in accordance with Part 2, Licensure;
2552 (b) take disciplinary action with the concurrence of the director in accordance with
2553 Part 4, Enforcement; and
2554 (c) advise the division concerning matters related to the administration and
2555 enforcement of this chapter.
2556 Section 47. Section 61-2c-105 is amended to read:
2557 61-2c-105. Scope of chapter -- Exemptions.
2558 (1) (a) Except as to an individual who will engage in an activity as a mortgage loan
2559 originator, this chapter applies to a closed-end residential mortgage loan secured by a first lien
2560 or equivalent security interest on a dwelling.
2561 (b) This chapter does not apply to a transaction covered by Title 70C, Utah Consumer
2562 Credit Code.
2563 (2) The following are exempt from this chapter:
2564 (a) the federal government;
2565 (b) a state;
2566 (c) a political subdivision of a state;
2567 (d) an agency of or entity created by a governmental entity described in Subsections
2568 (2)(a) through (c) including:
2569 (i) the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah Housing
2570 Corporation Act;
2571 (ii) the Federal National Mortgage Corporation;
2572 (iii) the Federal Home Loan Mortgage Corporation;
2573 (iv) the Federal Deposit Insurance Corporation;
2574 (v) the Resolution Trust Corporation;
2575 (vi) the Government National Mortgage Association;
2576 (vii) the Federal Housing Administration;
2577 (viii) the National Credit Union Administration;
2578 (ix) the Farmers Home Administration; and
2579 (x) the United States Department of Veterans Affairs;
2580 (e) a depository institution;
2581 (f) an [
2582 with a depository institution;
2583 (g) an employee or agent of an entity described in Subsections (2)(a) through (f):
2584 (i) when that person acts on behalf of the entity described in Subsections (2)(a)
2585 through (f); and
2586 (ii) including an employee of:
2587 (A) a depository institution;
2588 (B) a subsidiary of a depository institution that is:
2589 (I) owned and controlled by the depository institution; and
2590 (II) regulated by a federal banking agency, as defined in 12 U.S.C. Sec. 5102; or
2591 (C) an institution regulated by the Farm Credit Administration;
2592 (h) except as provided in Subsection (3), a person who:
2593 (i) makes a loan:
2594 (A) secured by an interest in real property;
2595 (B) with the person's own money; and
2596 (C) for the person's own investment; and
2597 (ii) that does not engage in the business of making loans secured by an interest in real
2598 property;
2599 (i) except as provided in Subsection (3), a person who receives a mortgage, deed of
2600 trust, or consensual security interest on real property if the individual or entity:
2601 (i) is the seller of real property; and
2602 (ii) receives the mortgage, deed of trust, or consensual security interest on real
2603 property as security for a separate money obligation;
2604 (j) a person who receives a mortgage, deed of trust, or consensual security interest on
2605 real property if:
2606 (i) the person receives the mortgage, deed of trust, or consensual security interest as
2607 security for an obligation payable on an installment or deferred payment basis;
2608 (ii) the obligation described in Subsection (2)(j)(i) arises from a person providing
2609 materials or services used in the improvement of the real property that is the subject of the
2610 mortgage, deed of trust, or consensual security interest; and
2611 (iii) the mortgage, deed of trust, or consensual security interest is created without the
2612 consent of the owner of the real property that is the subject of the mortgage, deed of trust, or
2613 consensual security interest;
2614 (k) a nonprofit corporation that:
2615 (i) is exempt from paying federal income taxes;
2616 (ii) is certified by the United States Small Business Administration as a small business
2617 investment company;
2618 (iii) is organized to promote economic development in this state; and
2619 (iv) has as its primary activity providing financing for business expansion;
2620 (l) except as provided in Subsection (3), a court appointed fiduciary; or
2621 (m) an attorney admitted to practice law in this state:
2622 (i) if the attorney is not principally engaged in the business of negotiating residential
2623 mortgage loans; and
2624 (ii) when the attorney renders services in the course of the attorney's practice as an
2625 attorney.
2626 (3) An individual who will engage in an activity as a mortgage loan originator is
2627 exempt from this chapter only if the individual is an employee or agent exempt under
2628 Subsection (2)(g).
2629 (4) (a) Notwithstanding Subsection (2)(m), an attorney exempt from this chapter may
2630 not engage in conduct described in Section 61-2c-301 when transacting business of residential
2631 mortgage loans.
2632 (b) If an attorney exempt from this chapter violates Subsection (4)(a), the attorney:
2633 (i) is not subject to enforcement by the division under Part 4, Enforcement; and
2634 (ii) is subject to disciplinary action generally applicable to an attorney admitted to
2635 practice law in this state.
2636 (c) If the division receives a complaint alleging an attorney exempt from this chapter is
2637 in violation of Subsection (4)(a), the division shall forward the complaint to the Utah State Bar
2638 for disciplinary action.
2639 (5) (a) An individual who is exempt under Subsection (2) or (3) may voluntarily
2640 obtain a license under this chapter by complying with Part 2, Licensure.
2641 (b) An individual who voluntarily obtains a license pursuant to this Subsection (5)
2642 shall comply with all the provisions of this chapter.
2643 Section 48. Section 61-2c-106 is amended to read:
2644 61-2c-106. Addresses provided the division.
2645 (1) (a) [
2646 provide a physical location or street address when the person provides the nationwide database
2647 an address required by the division.
2648 (b) The following when provided under this chapter is public information:
2649 (i) a business address; or
2650 (ii) a mailing address.
2651 (2) A licensee is considered to have received a notification that is mailed to the last
2652 mailing address furnished to the [
2653 (a) if the licensee is an individual, the individual; or
2654 (b) if the licensee is an entity, the principal lending manager of the entity.
2655 Section 49. Section 61-2c-201 is amended to read:
2656 61-2c-201. Licensure required of person engaged in the business of residential
2657 mortgage loans.
2658 (1) Unless exempt from this chapter under Section 61-2c-105 , a person may not
2659 transact the business of residential mortgage loans without obtaining a license under this
2660 chapter.
2661 (2) For purposes of this chapter, a person transacts business in this state if:
2662 (a) (i) the person engages in an act that constitutes the business of residential mortgage
2663 loans; and
2664 (ii) (A) the act described in Subsection (2)(a)(i) is directed to or received in this state;
2665 and
2666 (B) the real property that is the subject of the act described in Subsection (2)(a)(i) is
2667 located in this state; or
2668 (b) a representation is made by the person that the person transacts the business of
2669 residential mortgage loans in this state.
2670 (3) An individual who has an ownership interest in an entity required to be licensed
2671 under this chapter is not required to obtain an individual license under this chapter unless the
2672 individual transacts the business of residential mortgage loans.
2673 (4) Unless otherwise exempted under this chapter, licensure under this chapter is
2674 required of both:
2675 (a) the individual who directly transacts the business of residential mortgage loans;
2676 and
2677 (b) if the individual transacts business as an employee or agent of an entity or
2678 individual, the entity or individual for whom the employee or agent transacts the business of
2679 residential mortgage loans.
2680 [
2681
2682 [
2683 [
2684
2685 [
2686
2687 [
2688 [
2689 [
2690
2691 [
2692 [
2693 [
2694
2695
2696 [
2697 [
2698 [
2699
2700 [
2701 business of residential mortgage loans transacts the business of residential mortgage loans
2702 under an assumed business name, the entity shall in accordance with rules made by the
2703 division:
2704 (i) register the assumed name [
2705 (ii) furnish [
2706 Division of Corporations and Commercial Code pursuant to Title 42, Chapter 2, Conducting
2707 Business Under Assumed Name.
2708 (b) The division may charge a fee established in accordance with Section 63J-1-504
2709 for registering an assumed name pursuant to this Subsection [
2710 [
2711
2712 Section 50. Section 61-2c-202 is amended to read:
2713 61-2c-202. Licensure procedures.
2714 (1) To apply for licensure under this chapter an applicant shall in a manner provided
2715 by the division by rule:
2716 (a) if the applicant is an entity, submit [
2717 (i) lists any name under which the [
2718 (ii) lists the address of the principal business location of the [
2719 [
2720 [
2721 [
2722 [
2723
2724 [
2725 [
2726
2727 [
2728
2729 (v) identifies the one or more control persons for the entity;
2730 (vi) identifies the jurisdictions in which the entity is registered, licensed, or otherwise
2731 regulated in the business of residential mortgage loans;
2732 (vii) discloses any adverse administrative action taken by an administrative agency
2733 against:
2734 (A) the entity; or
2735 (B) any control person for the entity;
2736 (viii) discloses any history of criminal proceedings involving any control person for
2737 the entity; and
2738 [
2739 (b) if the applicant is an individual[
2740 [
2741 [
2742 [
2743 (i) submit a licensure statement that identifies the entity with which the applicant is
2744 sponsored;
2745 (ii) authorize a criminal background check through the nationwide database accessing:
2746 (A) the Utah Bureau of Criminal Identification, if the nationwide database is able to
2747 obtain information from the Utah Bureau of Criminal Identification; and
2748 [
2749 [
2750 successfully completed approved prelicensing education in accordance with Section
2751 61-2c-204.1 ;
2752 [
2753 successfully passed [
2754 61-2c-204.1 ; and
2755 [
2756 [
2757 [
2758
2759 [
2760 [
2761 [
2762 [
2763 [
2764
2765 [
2766
2767 [
2768
2769 (v) submit evidence using a method approved by the division by rule of having
2770 successfully registered in the nationwide database, including paying a fee required by the
2771 nationwide database; and
2772 (c) pay to the division:
2773 (i) an application fee established by the division in accordance with Section
2774 63J-1-504 ; and
2775 (ii) the reasonable expenses incurred by the division in processing the application for
2776 licensure[
2777 [
2778
2779 [
2780 [
2781 (2) (a) Upon receiving an application, the division, with the concurrence of the
2782 commission, shall determine whether the applicant:
2783 (i) meets the qualifications for licensure; and
2784 (ii) complies with this section.
2785 (b) If the division, with the concurrence of the commission, determines that an
2786 applicant meets the qualifications for licensure and complies with this section, the division
2787 shall issue the applicant a license.
2788 (c) If the division, with the concurrence of the commission, determines that the
2789 division requires more information to make a determination under Subsection (2)(a), the
2790 division may:
2791 (i) hold the application pending further information about an applicant's criminal
2792 background or history related to adverse administrative action in any jurisdiction; or
2793 (ii) issue a conditional license:
2794 (A) pending the completion of a criminal background check; and
2795 (B) subject to suspension or revocation if the criminal background check reveals that
2796 the applicant did not truthfully or accurately disclose on the licensing application a criminal
2797 history or other history related to adverse administrative action.
2798 [
2799 (i) review a class or category of application for an initial or renewed license;
2800 (ii) determine whether an applicant meets the [
2801
2802 (iii) conduct a necessary hearing on an application; and
2803 (iv) approve or deny a license application without concurrence by the commission.
2804 [
2805 an application without concurrence by the commission and the division denies an application
2806 for licensure, the applicant who is denied licensure may petition the commission for review of
2807 the denial.
2808 [
2809 agency review by the executive director only after the commission reviews the division's
2810 denial of the applicant's application.
2811 [
2812 Chapter 4, Administrative Procedures Act, an applicant who is denied licensure under this
2813 chapter may submit a request for agency review to the executive director within 30 days
2814 following the day on which the commission order denying the licensure is issued.
2815 [
2816 [
2817
2818 [
2819
2820
2821 [
2822 [
2823 [
2824 [
2825
2826 Section 51. Section 61-2c-203 is amended to read:
2827 61-2c-203. General qualifications for licensure.
2828 (1) To qualify for licensure under this chapter, [
2829 demonstrate through procedures established by rule made by the division in accordance with
2830 Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
2831 [
2832 [
2833 [
2834 [
2835 including general fitness such as to command the confidence of the community and to warrant
2836 a determination that the [
2837 the purposes of this chapter[
2838 [
2839 (2) If an applicant is an individual, the applicant may not have:
2840 (a) been convicted of, pled guilty to, pled no contest to, pled guilty in a similar manner
2841 to, or resolved by diversion or its equivalent:
2842 (i) a felony involving an act of fraud, dishonesty, a breach of trust, or money
2843 laundering; or
2844 (ii) a felony in the seven years preceding the day on which an application is submitted
2845 to the division;
2846 [
2847
2848 [
2849 [
2850
2851 [
2852 the division, been convicted of, pled guilty to, pled no contest to, pled guilty in a similar
2853 manner to, or resolved by diversion its equivalent:
2854 [
2855 [
2856 misdemeanor involving moral turpitude;
2857 (c) [
2858 license as a mortgage loan originator revoked by a governmental jurisdiction at any time;
2859 (d) [
2860 suspended, [
2861 individual applies for licensure if:
2862 (i) the registration or license is issued by this state or another jurisdiction; and
2863 (ii) the suspension, [
2864 based on misconduct in a professional capacity that relates to moral character, honesty,
2865 integrity, truthfulness, or the competency to transact the business of residential mortgage
2866 loans;
2867 (e) [
2868 the Securities and Exchange Commission, the New York Stock Exchange, or the National
2869 Association of Securities Dealers within the five years preceding the date the individual
2870 applies for registration; [
2871 (f) [
2872 individual:
2873 (i) by a court or [
2874 (ii) on the basis of:
2875 (A) conduct or a practice involving the business of residential mortgage loans; or
2876 (B) conduct involving fraud, misrepresentation, or deceit.
2877 [
2878 [
2879 (3) If an applicant is an entity, the applicant may not have a control person who fails
2880 to meet the requirements of Subsection [
2881
2882 [
2883 [
2884 [
2885 [
2886
2887 [
2888
2889 [
2890
2891
2892
2893 [
2894 [
2895 [
2896
2897 [
2898 [
2899 [
2900 [
2901 [
2902 [
2903
2904 Section 52. Section 61-2c-204.1 is amended to read:
2905 61-2c-204.1. Education providers -- Education requirements -- Examination
2906 requirements.
2907 (1) As used in this section:
2908 (a) "Approved continuing education course" means a course of continuing education
2909 that is approved by the nationwide database.
2910 (b) "Approved prelicensing education course" means a course of prelicensing
2911 education that is approved by the nationwide database.
2912 (2) (a) A person may not provide Utah-specific prelicensing education or
2913 Utah-specific continuing education if that person is not certified by the division under this
2914 chapter.
2915 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2916 the division shall make rules establishing:
2917 (i) certification criteria and procedures to become a certified education provider; and
2918 (ii) standards of conduct for a certified education provider.
2919 (c) In accordance with the rules described in Subsection (2)(b), the division shall
2920 certify a person to provide [
2921 Subsection (2)(a).
2922 [
2923 [
2924 (d) [
2925 names and addresses of certified education providers either directly or through a third party.
2926 (ii) A person who requests a list under this Subsection (2)(d) shall pay the costs
2927 incurred by the division to make the list available.
2928 (e) In certifying [
2929 may:
2930 (i) distinguish between an individual instructor and an entity that provides education;
2931 or
2932 (ii) approve:
2933 (A) Utah-specific prelicensing education; or
2934 (B) Utah-specific continuing education courses.
2935 (3) (a) The division may not:
2936 (i) license an individual under this chapter as a mortgage [
2937 has not completed the prelicensing education required by this section:
2938 (A) before taking the one or more licensing [
2939 Subsection (4); [
2940 (B) in the number of hours, not to exceed 90 hours, required by rule made by the
2941 division in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act[
2942
2943
2944
2945 [
2946 [
2947
2948 [
2949
2950 (C) that includes the prelicensing education required by federal licensing regulations;
2951 (ii) subject to Subsection (6), renew a license of an individual who has not completed
2952 the continuing education required by this section and Section 61-2c-205 [
2953 (A) in the number of hours required by rule made by the division in accordance with
2954 Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
2955 (B) that includes the continuing education required by federal licensing regulations; or
2956 (iii) [
2957 lending manager who has not completed the prelicensing education required by Section
2958 61-2c-206 before taking the licensing examination required by Section 61-2c-206 .
2959 (b) Subject to Subsection (3)(a) and with the concurrence of the division, the
2960 commission shall determine:
2961 (i) except as provided in Subsection 61-2c-206 (1)[
2962 hours of prelicensing education required to obtain a license;
2963 (ii) the subject matters of the prelicensing education required under this section and
2964 Section 61-2c-206 , including online education or distance learning options;
2965 (iii) the appropriate number of hours of continuing education required to renew a
2966 license[
2967
2968
2969 [
2970 [
2971
2972 [
2973
2974 (iv) the subject matter of courses the division may accept for continuing education
2975 purposes.
2976 (c) The commission may appoint a committee to make recommendations to the
2977 commission concerning approval of prelicensing education and continuing education courses,
2978 except that the commission shall appoint at least one member to the committee to represent
2979 each association that represents a significant number of individuals licensed under this
2980 chapter.
2981 (d) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
2982 Administrative Rulemaking Act, provide for the calculation of continuing education credits,
2983 except that the rules shall be consistent with 12 U.S.C. Sec. 5105.
2984 (4) (a) The division may not license an individual under this chapter unless that
2985 individual first passes [
2986 (i) are adopted by the division in accordance with Title 63G, Chapter 3, Utah
2987 Administrative Rulemaking Act;
2988 (ii) meet the minimum federal licensing requirements; and
2989 (iii) are administered by an approved examination provider.
2990 (b) The commission, with the concurrence of the division, shall determine the
2991 requirements for:
2992 (i) a licensing examination that at least:
2993 [
2994 (A) meets the minimum federal licensing requirements; and
2995 (B) tests knowledge of the:
2996 (I) fundamentals of the English language;
2997 (II) arithmetic;
2998 (III) provisions of this chapter;
2999 (IV) rules adopted under this chapter;
3000 (V) basic residential mortgage principles and practices; and
3001 (VI) any other aspect of Utah law the commission determines is appropriate; and
3002 (ii) a licensing examination required under Section 61-2c-206 that:
3003 [
3004 (A) meets the requirements of Subsection (4)(b)(i); and
3005 (B) tests knowledge of the:
3006 (I) advanced residential mortgage principles and practices; and
3007 (II) other aspects of Utah law the commission, with the concurrence of the division,
3008 determines appropriate.
3009 (c) An individual who will engage in an activity as a mortgage loan originator, is not
3010 considered to have passed a licensing examination if that individual has not met the minimum
3011 competence requirements of 12 U.S.C. Sec. 5104(d)(3).
3012 (5) When reasonably practicable, the commission and the division shall make the
3013 [
3014 education requirements described in this section available electronically through one or more
3015 distance education methods approved by the commission and division.
3016 (6) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3017 the commission, with the concurrence of the division, shall make rules establishing procedures
3018 under which a licensee may be exempted from a Utah-specific continuing education
3019 [
3020 (i) for a period not to exceed four years; and
3021 (ii) upon a finding of reasonable cause.
3022 (b) An individual who engages in an activity as a mortgage loan originator may not
3023 under this Subsection (6) be exempted from the [
3024 education required under [
3025 who engages in an activity as a mortgage loan originator.
3026 Section 53. Section 61-2c-205 is amended to read:
3027 61-2c-205. Term of licensure -- Renewal -- Reporting of changes.
3028 (1) (a) A license issued under this chapter [
3029 (i) for the calendar year the license is issued:
3030 (A) if the license is issued on or before October 31, the license expires on December
3031 31 of the same calendar year; and
3032 (B) if the license is issued on or after November 1, the license expires on December 31
3033 of the following calendar year; and
3034 (ii) after the December 31 on which a license expires under Subsection (1)(a)(i), a
3035 license expires an