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H.B. 275 Enrolled

             1     

DIVISION OF REAL ESTATE AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gage Froerer

             5     
Senate Sponsor: Wayne L. Niederhauser

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to the Division of Real Estates' regulation of the
             10      appraisal, mortgage, and real estate industries.
             11      Highlighted Provisions:
             12          This bill:
             13          .    recodifies Title 61, Chapter 2, Division of Real Estate, and Chapter 2a, Real Estate
             14      Recovery Fund Act, and as part of the recodification creates Chapter 2f, Real
             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 [ 61-2-3 ] 61-2f-202 , an employee of a municipality is
             223      exempt from licensure under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate
             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 [property] estate, including by eminent domain;
             230          (b) disposing of real [property] estate;
             231          (c) providing services that constitute property management, as defined in Section
             232      [ 61-2-2 ] 61-2f-102 ; or
             233          (d) leasing real [property] estate.
             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 [ 61-2-5 ] 61-2-201 ; or
             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 [real estate broker or real estate] principal broker, associate broker, or sales agent
             286      holding a license under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing
             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; [or]
             298          (s) a landscape architect licensed under Title 58, Chapter 53, Landscape Architects
             299      Licensing Act, and any subsequent laws regulating landscape architects[.]; or
             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 [ 61-2-3 ] 61-2f-202 , an employee of a county is exempt


             310      from licensure under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing
             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 [property] estate, including by eminent domain;
             317          (b) disposing of real [property] estate;
             318          (c) providing services that constitute property management, as defined in Section
             319      [ 61-2-2 ] 61-2f-102 ; or
             320          (d) leasing real [property] estate.
             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 [2, Division of Real Estate] 2f, Real Estate Licensing and
             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      [ 61-2-5.5 ] 61-2f-103 .
             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 [2, Division of Real Estate] 2f, Real
             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 [real estate] sales agent or [real estate] associate broker, as defined in Section
             447      [ 61-2-2 ] 61-2f-102 , who performs services in that capacity for a [real estate] principal broker
             448      if:
             449          (i) substantially all of the [real estate] sales agent's or [associated] associate broker's


             450      income for services is from real estate commissions; and
             451          (ii) [the services of the real estate sales agent or associated broker] the sales agent's or
             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 [real estate] sales agent or [associated] associate broker is not to be treated as
             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 [ 61-2-28 ]
             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, [Dentists]
             622      Dentist and Dental [Hygienists] Hygienist Practice Act, and any subsequent laws, regulating
             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 [real estate broker or real estate] principal broker, associate broker, or sales agent
             650      holding a license under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing
             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; [and]
             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[.]; or
             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 [ 61-2-5 ] 61-2-201 .
             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 [real estate] principal
             762      broker, associate broker, or [real estate] sales agent who violates this chapter for the period of
             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 [the provisions of] Section [ 61-2-12 ]
             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 [2] 2f, Real Estate Licensing and Practices
             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 [real estate] broker, an
             834      associate [real estate] broker, or a [real estate] sales agent as those terms are defined in Section
             835      [ 61-2-2 ] 61-2f-102 .
             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 [ 61-2-3 ] 61-2f-202 , an individual may not offer, sell, or
             846      otherwise dispose of a cooperative interest in this state unless [he] the individual is licensed by
             847      the division under Title 61, Chapter [2, Division of Real Estate] 2f, Real Estate Licensing and
             848      Practices Act, as a principal [real estate] broker, associate [real estate] broker, or [real estate]
             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 [2, Division of
             859      Real Estate] 2f, Real Estate Licensing and Practices Act.
             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 [2, Division of Real Estate] 2f,
             881      Real Estate Licensing and Practices Act; or
             882          (c) a sales agent or associate broker licensed under Title 61, Chapter [2, Division of
             883      Real Estate] 2f, Real Estate Licensing and Practices Act, who sells factory built housing as an
             884      agent for, and under the supervision of, the [licensed] principal broker with whom the sales
             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 [real estate] principal broker or associate broker licensed in this
             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 [or] of trust, or agreement, together with all the bonds or
             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 [ 61-2-26 ] 61-2f-103 .
             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 [2, Division of Real Estate] 2f, Real Estate Licensing
             1238      and Practices Act, as:
             1239          (i) a principal [real estate] broker;
             1240          (ii) an associate [real estate] broker; or
             1241          (iii) a [real estate] sales agent.
             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     
CHAPTER 2. DIVISION OF REAL ESTATE

             1247     
Part 1. General Provisions

             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     
Part 2. Organization

             1261           [61-2-5].     61-2-201. Division of Real Estate created -- Director appointed --


             1262      Personnel.
             1263          (1) There is created within the [Department of Commerce] department a Division of
             1264      Real Estate. [It] The division is responsible for the administration and enforcement of:
             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          [(e) Chapter 2a, Real Estate Recovery Fund Act;]
             1270          [(f)] (e) Chapter 2b, Real Estate Appraiser Licensing and Certification Act;
             1271          [(g)] (f) Chapter 2c, Utah Residential Mortgage Practices and Licensing Act; [and]
             1272          [(h)] (g) Chapter 2e, Appraisal Management Company Registration and Regulation
             1273      Act[.]; and
             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          [(4) On or before October 1 of each year, the director shall, in conjunction with the
             1282      department, report to the governor and the Legislature concerning the division's work for the
             1283      preceding fiscal year ending June 30.]
             1284          [(5) The director, in conjunction with the executive director, shall prepare and submit
             1285      to the governor and the Legislature a budget for the fiscal year next following the convening of
             1286      the Legislature.]
             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           [61-2-5.1].     61-2-203. Adjudicative proceedings.
             1298          The [Division of Real Estate] division shall comply with [the procedures and
             1299      requirements of] Title 63G, Chapter 4, Administrative Procedures Act, in [its] an adjudicative
             1300      [proceedings] proceeding under a chapter the division administers.
             1301          Section 23. Section 61-2-204 , which is renumbered from Section 61-2-28 is
             1302      renumbered and amended to read:
             1303           [61-2-28].     61-2-204. Utah Housing Opportunity Restricted Account.
             1304          (1) For purposes of this section, "account" means the Utah Housing Opportunity
             1305      Restricted Account created by this section.
             1306          [(1)] (2) There is created in the General Fund a restricted account known as the "Utah
             1307      Housing Opportunity Restricted Account."
             1308          [(2)] (3) The account shall be funded by:
             1309          (a) contributions deposited into the [Utah Housing Opportunity Restricted Account]
             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          [(3) Funds] (4) Money in the account [are] is nonlapsing.
             1314          [(4)] (5) (a) The state treasurer shall invest [monies] money in the account according
             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 [monies] money into the General Fund.


             1318          [(5)] (6) The Legislature shall appropriate money in the account to the division.
             1319          [(6)] (7) The division shall distribute the [funds] money in the account to one or more
             1320      charitable organizations that:
             1321          (a) [qualify as being] are tax exempt under Section 501(c)(3), Internal Revenue Code;
             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          [(7)] (8) The division may [only consider proposals that are] consider a proposal only
             1326      if it is:
             1327          (a) proposed by an organization [under] described in Subsection [(6)] (7); and
             1328          (b) designed to provide support to organizations that create affordable housing for
             1329      those in severe need.
             1330          [(8)] (9) (a) An organization described in Subsection [(6)] (7) may apply to the
             1331      division to receive a distribution in accordance with Subsection [(6)] (7).
             1332          (b) An organization that receives a distribution from the division in accordance with
             1333      Subsection [(6)] (7) shall expend the distribution only to provide support to organizations that
             1334      create affordable housing for those in severe need.
             1335          [(9)] (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             1336      Act, the division shall make rules providing procedures for an organization to apply to receive
             1337      [funds] money under this section.
             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          [(d)] (e) "Board" means the Real Estate Appraiser Licensing and Certification Board
             1366      that is established in Section 61-2b-7 .
             1367          [(e)] (f) "Certified appraisal report" means a written or oral appraisal report that is
             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          [(f)] (h) (i) (A) "Consultation service" means an engagement to provide a real estate
             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          [(g)] (i) "Contingent fee" means a fee or other form of compensation, payment of
             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          [(h)] (j) "Division" means the Division of Real Estate of the Department of
             1386      Commerce.
             1387          [(i)] (k) "Federally related transaction" means a real estate related transaction that is
             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          [(j)] (l) "Real estate" means an identified parcel or tract of land including
             1392      improvements if any.
             1393          [(k)] (m) "Real estate appraisal activity" means the act or process of making an
             1394      appraisal of real estate or real property and preparing an appraisal report.
             1395          [(l)] (n) "Real estate related transaction" means:
             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          [(m)] (o) "Real property" means one or more defined interests, benefits, or rights


             1402      inherent in the ownership of real estate.
             1403          [(n)] (p) "State-certified general appraiser" means a person who holds a current, valid
             1404      certification as a state-certified general appraiser issued under this chapter.
             1405          [(o)] (q) "State-certified residential appraiser" means a person who holds a current,
             1406      valid certification as a state-certified residential real estate appraiser issued under this chapter.
             1407          [(p)] (r) "State-licensed appraiser" means a person who holds a current, valid license
             1408      as a state-licensed appraiser issued under this chapter.
             1409          [(q)] (s) "Trainee" means an individual who:
             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          [(r)] (t) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
             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 [anyone] a person to prepare, for valuable consideration, an appraisal, an appraisal report,
             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 [real estate broker] principal broker, associate broker, or sales agent as defined by
             1433      Section [ 61-2-2 ] 61-2f-102 licensed by this state who, in the ordinary course of the [real
             1434      estate] broker's or sales agent's business, gives an opinion:
             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) [any] an official or employee of a government agency while acting solely within
             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      [with the division] before the individual acts in the capacity of a trainee earning experience for
             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 [approved by the board
             1481      for licensing and certification examinations]; and
             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          [(f) The division shall assist the board in upgrading and improving the quality of the
             1488      education and examinations required under this chapter.]
             1489          [(g)] (f) The division shall assist the board in improving the quality of the continuing
             1490      education available to a person licensed [and], certified, or registered under this chapter.
             1491          [(h)] (g) The division shall assist the board with respect to the proper interpretation or
             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          [(i)] (h) The division shall establish fees in accordance with Section 63J-1-504 :
             1496          (i) for processing:
             1497          [(A) a trainee registration;]
             1498          [(B)] (A) an application for licensing [and], certification, or registration; and
             1499          [(C)] (B) approval of an expert witness; and
             1500          (ii) for [all other functions] any other function required or permitted by this chapter.
             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          [(A) a trainee;]
             1512          [(B)] (A) a person licensed [or], certified, or registered under this chapter; or
             1513          [(C)] (B) a person required to be licensed, certified, or registered under this chapter;


             1514          (ii) subpoena a witness;
             1515          (iii) subpoena the production of a book, paper, document, record, [or other paper]
             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) [The division may] (i) Upon request, the division shall make available[, at a
             1534      reasonable cost determined by the division], either directly or through a third party, a list of
             1535      the names and addresses of [all] the persons licensed, registered, or certified by the division
             1536      under this chapter [to the extent the information is a public record under Title 63G, Chapter 2,
             1537      Government Records Access and Management Act].
             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, [provided that] if the:
             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 [to] set by the division in
             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) [is effective for] applies to an administrative or judicial property
             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) [If a criminal background check discloses that an applicant fails to accurately
             1582      disclose a criminal history, the] A registration is immediately and automatically revoked[.] if a
             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          [(iii)] (iv) An individual whose conditional registration is automatically revoked under
             1599      Subsection (4)(d)(ii) or whose registration is conditioned, restricted, or revoked under
             1600      Subsection (4)(d)(iii) may appeal the [revocation] action in a hearing conducted by the board:
             1601          (A) after the [revocation] action is taken; and
             1602          (B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             1603          [(iv)] (v) The board may delegate to the division or an administrative law judge the
             1604      authority to conduct a hearing described in Subsection (4)(d)[(iii)](iv).
             1605          [(v)] (vi) Relief from [a] an automatic revocation under Subsection (4)(d)(ii) may be
             1606      granted only if:
             1607          (A) the criminal history upon which the division [based] bases the revocation:
             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)[(iii)](iv), the individual may not apply for a new [license] registration for a
             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) [The funds] Money paid by an applicant for the cost of the criminal background
             1621      check [shall be] is nonlapsing.
             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[,] and education[, and examination] requirements
             1629      appropriate for a person licensed under this chapter;
             1630          (b) determine the experience[,] and education[, and examination] requirements
             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[,] and education[, and examination] requirements established
             1647      by the board for a person licensed or certified under this chapter shall be the minimum criteria
             1648      established by the [Appraiser] Appraisal Qualification Board [of the Appraisal Foundation],
             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          [(6) The board shall develop and establish or approve the examination specifications
             1675      and the minimum score required to pass an examination for licensure or certification.]
             1676          [(7) The board may review the:]
             1677          [(a) bank of questions and answers that comprise the examination for a person
             1678      licensed and certified under this chapter;]
             1679          [(b) procedure that is established for selecting individual questions from the bank of
             1680      questions for use in each scheduled examination; and]
             1681          [(c) questions in the bank of questions and the related answers to determine whether


             1682      they meet the examination specifications established by the board.]
             1683          [(8)] (6) (a) The board shall conduct an administrative hearing, not delegated by the
             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          [(9)] (7) A member of the board is immune from a civil action or criminal prosecution
             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          [(10)] (8) The board shall require and pass upon proof necessary to determine the
             1700      honesty, competency, integrity, and truthfulness of an applicant for:
             1701          (a) original licensure, certification, or registration; and
             1702          (b) renewal licensure [or], certification, or registration.
             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          [(b)] (c) pass the licensing examination with a satisfactory score as determined by the
             1718      [board] Appraisal Qualification Board;
             1719          [(c)] (d) successfully complete not less than 150 classroom hours in courses of study
             1720      [approved by the board] that relate to:
             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          [(d)] (e) possess the minimum number of hours of experience in real property
             1726      appraisal as established by rule.
             1727          (5) The courses of study under Subsection (4)[(c)](d) shall be conducted by:
             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          [(6) The board shall require and pass upon proof necessary to determine the honesty,
             1736      competency, integrity, and truthfulness of each applicant.]
             1737          Section 29. Section 61-2b-14 is amended to read:


             1738           61-2b-14. State-certified residential appraiser -- Application.
             1739          (1) [Each] An applicant for certification as a residential appraiser shall provide to the
             1740      division evidence of:
             1741          (a) the applicant's good moral character, honesty, competency, integrity, and
             1742      truthfulness;
             1743          [(a) of] (b) completion of the certification examination with a satisfactory score as
             1744      determined by the [board] Appraisal Qualification Board;
             1745          [(b) (i) of] (c) (i) an associate degree or higher degree from an accredited:
             1746          (A) college;
             1747          (B) junior college;
             1748          (C) community college; or
             1749          (D) university; or
             1750          (ii) [of] successfully passing a curriculum determined by rule of collegiate level
             1751      subject matter courses from an accredited:
             1752          (A) college;
             1753          (B) junior college;
             1754          (C) community college; or
             1755          (D) university;
             1756          [(c) of] (d) satisfactory completion of not less than 200 classroom hours in a
             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 [has been] is approved by the Appraisal [Qualifications] Qualification Board
             1761      [of the federal Appraisal Foundation authorized by Title XI of the Financial Institutions
             1762      Reform, Recovery, and Enforcement Act of 1989];
             1763          [(d) of] (e) the minimum number of hours of experience in real property appraisal as
             1764      established by rule; and
             1765          [(e) that] (f) acquiring the experience required under Subsection [(1)(d) was acquired]


             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, [the] an applicant shall make available to the
             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)[(c)](d) shall be provided by:
             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) [Each] An applicant for certification as a general appraiser shall provide to the
             1785      division evidence of:
             1786          (a) the applicant's good moral character, honesty, competency, integrity, and
             1787      truthfulness;
             1788          [(a) of] (b) completion of the certification examination with a satisfactory score as
             1789      determined by the [board] Appraisal Qualification Board;
             1790          [(b)] (c) (i) [of] a bachelors degree or higher degree from an accredited college or
             1791      university; or
             1792          (ii) [of] successfully passing a curriculum determined by rule of collegiate level
             1793      subject matter courses from an accredited:


             1794          (A) college;
             1795          (B) junior college;
             1796          (C) community college; or
             1797          (D) university;
             1798          [(c) of] (d) satisfactory completion of not less than 300 classroom hours in a
             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 [Qualifications] Qualification Board [of
             1803      the Appraisal Foundation authorized by Title XI of the Financial Institutions Reform,
             1804      Recovery, and Enforcement Act of 1989];
             1805          [(d) of] (e) the minimum number of hours of experience in real property appraisal as
             1806      established by rule; and
             1807          [(e) that] (f) acquiring the experience required under Subsection [(1)(d) is acquired]
             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, [the] an applicant shall make available to the
             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)[(c)](d) shall be provided by:
             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 [a state-licensed appraiser or] a state-certified appraiser in the
             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 [or], licensure, or registration.
             1881          (2) The payment of the appropriate fee, as [fixed] established by the division, with the
             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 [or], licensure, or registration.
             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) [The] An initial license [or], certification, or registration issued under this chapter
             1900      expires on the expiration date indicated on the license [or], certificate, or registration.
             1901          (2) A renewal license [or], certification, or registration issued under this chapter
             1902      expires two years from the date of issuance.
             1903          (3) (a) The scheduled expiration date of [the] a license [or], certification, or
             1904      registration shall appear on the license [or], certification, or registration document [and no
             1905      other notice of its expiration need be given to its holder].


             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          [(1) To obtain a renewal of a license or certification under this chapter, the holder of a
             1917      current, valid license or certification shall, in compliance with procedures established by the
             1918      division and the board, make application and pay the prescribed fee to the division before the
             1919      expiration date of the license or certification.]
             1920          [(2) An application for renewal of a license or certification shall be accompanied by]
             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          [(3)] (2) (a) A license [or], certification, or registration expires if it is not renewed on
             1930      or before its expiration date.
             1931          (b) For a period of 30 days after the expiration date, a license [or], certification, or
             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 [(3)] (2)(b), and until six months
             1937      after the expiration date, [the] a license [or], certification, or registration may be reinstated by:
             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 [(3)] (2)(c), and until one year
             1942      after the expiration date, [the] a license [or], certification, or registration may be reinstated by:
             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 [or], recertify, or reregister a person who does not
             1953      renew that person's license [or], certification, or registration within one year after the
             1954      expiration date as prescribed for an original application.
             1955          (f) Notwithstanding Subsection [(3)] (2)(a), the division may extend the term of a
             1956      license, certification, or registration that would expire under Subsection [(3)] (2)(a) except for
             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          [(4)] (3) A person who is licensed, certified, or registered under this chapter shall
             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 [licensing] administrative agency; and
             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          [Nothing contained in this] This chapter [shall] may not be considered to prohibit a
             1984      person approved, licensed, [or] certified, or registered under this chapter from engaging in the
             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, [other] document, [or]
             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 [or], certification, or registration;
             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) [$2,500] $5,000 for each violation; or
             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) [a provision of] this chapter;
             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 [as defined in Subsection
             2116      61-2b-2 (1)(a)] if in fact the fee is or was contingent upon:
             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 [who has had a] whose license, certification, registration, or
             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 [or], certification, registration, or approval subject to the limitations in
             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          [No] A person engaged in the business of real estate appraising in this state or acting in
             2151      the capacity of a real estate appraiser in this state may not bring or maintain [any] an action
             2152      [in any] as a plaintiff in a court of this state to collect compensation for the performance of
             2153      real estate appraisal services for which registration, licensure, or certification is required by
             2154      this chapter without alleging and proving that [he] the person was the holder of a valid
             2155      registration, license, or certification in this state at all times during the performance of [such]
             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 [or], certification, or registration issued by the division to a person
             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 [as defined in Subsection 61-2b-2 (1)(a)] may not accept a contingent fee.
             2171          (2) A person licensed or certified under this chapter who enters into an agreement to
             2172      provide consultation services [as defined in Subsection 61-2b-2 (1)(f)(i)(A)] may be paid a
             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 [in an amount specified in rule] established
             2185      by the division in accordance with Section 63J-1-504 , issue to [any] a person a verified


             2186      [license] history of:
             2187          (1) [any] a person licensed [or], certified, or registered under this chapter; or
             2188          (2) [any] a person previously registered, licensed, or certified under this chapter.
             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 [or], certification, or registration, the
             2192      applicant for renewal shall present evidence satisfactory to the division of having met the
             2193      continuing education requirements of this section.
             2194          (2) [For any] A person licensed [or], certified, or registered under this chapter[, the
             2195      continuing education requirement for renewal of licensure or certification shall be the
             2196      completion by the applicant,] shall complete during the two-year period immediately
             2197      preceding the filing of an application for renewal[, of] not less than 28 classroom hours of
             2198      instruction in courses or seminars that have received the approval of the [board] division.
             2199          (3) The division may adopt rules for the implementation of this section to assure that
             2200      each person renewing that person's license [or], certification, or registration under this chapter
             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 [or], certificate, or registration.
             2205          (4) An amendment or repeal of a rule adopted by the division under this section [shall]
             2206      does not operate to deprive a person of credit toward renewal of that person's license [or],
             2207      certification, or registration for [any] a course of instruction that is successfully completed by
             2208      the applicant [prior to] before the date of the amendment or repeal of the rule.
             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 [for the implementation
             2221      of this section to assure that a person who renews that person's license or certification has a
             2222      working knowledge of current real estate appraisal theories, practices, and techniques that will
             2223      enable the person to provide competent real estate appraisal services to the members of the
             2224      public with whom that person deals in a professional relationship under the authority of that
             2225      person's license or certification. These rules] described in Subsection (3). The rules
             2226      developed and proposed by the board under this Subsection (6) shall prescribe:
             2227          (a) policies and procedures to be followed in obtaining [board] division approval of
             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 [or], certification [has been], or registration is revoked
             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 [provided in] required by this chapter for renewal.
             2238          (b) The continuing education required under Subsection (7)(a) [shall] may not be
             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          [(a) "Affiliate" means a person who directly, or indirectly through one or more
             2246      intermediaries, controls or is controlled by, or is under common control with, a specified
             2247      individual or entity.]
             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          [(k)] (l) "Continuing education" means education taken by an individual licensed
             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          [(l)] (m) "Control," as used in Subsection [(1)(a)] 61-2c-105 (2)(f), means the power to
             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          [(m)] (o) "Depository institution" is as defined in Section 7-1-103 .
             2331          [(n)] (p) "Director" means the director of the division.
             2332          [(o)] (q) "Division" means the Division of Real Estate.
             2333          [(p)] (r) "Dwelling" means a residential structure attached to real property that
             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          [(q)] (s) "Entity" means:
             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          [(r)] (t) "Executive director" means the executive director of the Department of
             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          [(s)] (v) "Inactive status" means a dormant status into which an unexpired license is


             2354      placed when the holder of the license is not currently engaging in the business of residential
             2355      mortgage loans.
             2356          [(t)] (w) "Licensee" means a person licensed with the division under this chapter.
             2357          [(u)] (x) "Licensing examination" means the examination required by Section
             2358      61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
             2359          [(v)] (y) (i) Except as provided in Subsection (1)[(v)](y)(ii), "mortgage loan
             2360      originator" means an individual who for compensation or in expectation of compensation:
             2361          (A) (I) takes a residential mortgage loan application; or
             2362          [(B)] (II) offers or negotiates terms of a residential mortgage loan[.]; and
             2363          (B) is licensed as a mortgage loan originator in accordance with this chapter.
             2364          (ii) "[Loan] Mortgage loan originator" does not include a person who:
             2365          (A) is described in Subsection (1)[(v)](y)(i), but who performs exclusively
             2366      administrative or clerical tasks as described in Subsection (1)(f)(ii)(A);
             2367          [(B) unless compensated by a lender, a principal lending manager, or an agent of a
             2368      lender or principal lending manager:]
             2369          [(I) only performs real estate brokerage activities; and]
             2370          [(II) is licensed under Chapter 2, Division of Real Estate; and]
             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          [(w) "Mortgage officer" means an individual who is licensed with the division to
             2380      transact the business of residential mortgage loans through a principal lending manager.]
             2381          [(x)] (z) "Nationwide database" means the Nationwide Mortgage Licensing System


             2382      and Registry, authorized under [Secure and Fair Enforcement for Mortgage Licensing, 12
             2383      U.S.C. Sec. 5101, et seq] federal licensing requirements.
             2384          [(y)] (aa) "Nontraditional mortgage product" means a mortgage product other than a
             2385      30-year fixed rate mortgage.
             2386          [(z)] (bb) "Person" means an individual or entity.
             2387          [(aa)] (cc) "Prelicensing education" means education taken by an individual seeking to
             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          [(bb)] (dd) (i) "Principal lending manager" means an individual licensed as a principal
             2391      lending manager under Section 61-2c-206 to transact the business of residential mortgage
             2392      loans.
             2393          (ii) An individual [licensed as] who is a principal lending manager may transact the
             2394      business of residential mortgage loans as a mortgage [officer] loan originator.
             2395          [(cc)] (ee) "Record" means information that is:
             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) [retrievable] in a perceivable and reproducible form.
             2400          [(dd)] (ff) "Residential mortgage loan" means an extension of credit, if:
             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)[(dd)](ff)(i):
             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          [(ee)] (hh) "State" means:
             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          [(ff)] (ii) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
             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 [monies] money received by a licensee;
             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          [(6) The division may make available to the public a list of the names and mailing
             2462      addresses of licensees:]
             2463          [(a) either directly or through a third party; and]
             2464          [(b) at a reasonable cost.]
             2465          [(7)] (6) The division shall annually:


             2466          (a) review the requirements related to the nationwide database imposed by federal
             2467      [law] licensing requirements or the nationwide database on:
             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 [(7)] (6)(a):
             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          [(8)] (7) The division may enter into a relationship or contract with the nationwide
             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          [(9)] (8) The division shall regularly report the following to the nationwide database:
             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 [(2)](3), concur in the licensure or
             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 [affiliate of] entity that controls, is controlled by, or is under common control
             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) [In providing an address to the division under this chapter, a] A person shall
             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 [division] nationwide database by:
             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          [(5) (a) An individual licensed under this chapter may not engage in the business of
             2681      residential mortgage loans on behalf of more than one entity at the same time.]
             2682          [(b) This Subsection (5) does not restrict the number of:]
             2683          [(i) different lenders a person may use as a funding source for residential mortgage
             2684      loans; or]
             2685          [(ii) entities in which an individual may have an ownership interest, regardless of
             2686      whether the entities are:]
             2687          [(A) licensed under this chapter; or]
             2688          [(B) exempt under Section 61-2c-105 .]
             2689          [(6) An individual licensed under this chapter may not transact the business of


             2690      residential mortgage loans for the following at the same time:]
             2691          [(a) an entity licensed under this chapter; and]
             2692          [(b) an entity that is exempt from licensure under Section 61-2c-105 .]
             2693          [(7) A mortgage officer may not receive consideration for transacting the business of
             2694      residential mortgage loans from any person or entity except the principal lending manager with
             2695      whom the mortgage officer is licensed.]
             2696          [(8) A mortgage officer shall conduct all business of residential mortgage loans:]
             2697          [(a) through the principal lending manager with which the individual is licensed; and]
             2698          [(b) in the business name under which the principal lending manager is authorized by
             2699      the division to do business.]
             2700          [(9)] (5) (a) If an entity that is [authorized by this chapter] licensed to transact the
             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 [with the division] under this chapter; and
             2705          (ii) furnish [the division] proof that the assumed business name is filed with the
             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 [(9)] (5).
             2710          [(10) A licensee whose license is in inactive status may not transact the business of
             2711      residential mortgage loans.]
             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 [to the division] a licensure statement that:
             2717          (i) lists any name under which the [applicant] entity will transact business in this state;


             2718          (ii) lists the address of the principal business location of the [applicant] entity;
             2719          [(iii) if the applicant is an entity:]
             2720          [(A) lists] (iii) identifies the principal lending manager of the entity; [and]
             2721          [(B)] (iv) contains the signature of the principal lending manager;
             2722          [(iv) demonstrates that the applicant meets the qualifications listed in Section
             2723      61-2c-203 ;]
             2724          [(v) if the applicant is an entity, lists:]
             2725          [(A) all jurisdictions in which the entity is registered, licensed, or otherwise regulated
             2726      in the business of residential mortgage loans; and]
             2727          [(B) the history of any disciplinary action or adverse administrative action taken
             2728      against the entity by a regulatory agency; and]
             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          [(vi)] (ix) includes any information required by the division by rule;
             2739          (b) if the applicant is an individual[, the applicant shall provide]:
             2740          [(i) (A) a fingerprint card in a form acceptable to the division; and]
             2741          [(B) consent to a criminal background check by:]
             2742          [(I) the Utah Bureau of Criminal Identification; and]
             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          [(II)] (B) the Federal Bureau of Investigation;
             2749          [(ii)] (iii) submit evidence using a method approved by the division by rule of having
             2750      successfully completed approved prelicensing education in accordance with Section
             2751      61-2c-204.1 ;
             2752          [(iii)] (iv) submit evidence using a method approved by the division by rule of having
             2753      successfully passed [a] any required licensing examination in accordance with Section
             2754      61-2c-204.1 ; and
             2755          [(iv) if the applicant will engage in an activity as a loan originator:]
             2756          [(A) the individual's unique identifier;]
             2757          [(B) any other evidence required by the division by rule demonstrating that the
             2758      individual has submitted the following to the nationwide database:]
             2759          [(I) a fingerprint card in a form acceptable to the nationwide database;]
             2760          [(II) consent to a criminal background check by:]
             2761          [(Aa) the Utah Bureau of Criminal Identification; and]
             2762          [(Bb) the Federal Bureau of Investigation; and]
             2763          [(III) information requested by the nationwide database regarding personal history and
             2764      experience including authorization for the nationwide database and division to obtain:]
             2765          [(Aa) an independent credit report obtained from a consumer reporting agency
             2766      described in 15 U.S.C. Sec. 1681 et seq.; and]
             2767          [(Bb) information related to an administrative, civil, or criminal finding of a
             2768      governmental jurisdiction; and]
             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[, including the costs incurred by the division under Subsection (4)].
             2777          [ (2) (a) The division shall issue a license to an applicant if the division, with the
             2778      concurrence of the commission, finds that the applicant:]
             2779          [(i) meets the qualifications of Sections 61-2c-203 and 61-2c-204.1 ; and]
             2780          [(ii) complies with this section.]
             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          [(b)] (3) (a) The commission may delegate to the division the authority to:
             2799          (i) review a class or category of application for an initial or renewed license;
             2800          (ii) determine whether an applicant meets the [licensing criteria in Sections 61-2c-203
             2801      and 61-2c-204.1] qualifications for licensure;


             2802          (iii) conduct a necessary hearing on an application; and
             2803          (iv) approve or deny a license application without concurrence by the commission.
             2804          [(c)] (b) If the commission delegates to the division the authority to approve or deny
             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          [(d)] (c) An applicant who is denied licensure under Subsection [(2)] (3)(b) may seek
             2809      agency review by the executive director only after the commission reviews the division's
             2810      denial of the applicant's application.
             2811          [(3)] (d) Subject to Subsection [(2)(d)](3)(c) and in accordance with Title 63G,
             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          [(4) (a) The division shall request the Department of Public Safety to complete:]
             2816          [(i) for an applicant who will engage in an activity as a loan originator, a criminal
             2817      background check by the Utah Bureau of Criminal Identification; or]
             2818          [(ii) for an applicant who will not engage in an activity as a loan originator, a Federal
             2819      Bureau of Investigation criminal background check through a national criminal history
             2820      system.]
             2821          [(b) An applicant shall pay the cost of:]
             2822          [(i) the fingerprinting required by this section; and]
             2823          [(ii) the criminal background check required by this section.]
             2824          [(c) The funds paid by an applicant for the cost of the criminal background check shall
             2825      be nonlapsing.]
             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, [an individual:] a person shall
             2829      demonstrate through procedures established by rule made by the division in accordance with


             2830      Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2831          [(a) shall demonstrate:]
             2832          [(i)] (a) financial responsibility;
             2833          [(ii)] (b) good moral character, honesty, integrity, and truthfulness; and
             2834          [(iii)] (c) the competence to transact the business of residential mortgage loans,
             2835      including general fitness such as to command the confidence of the community and to warrant
             2836      a determination that the [individual] person will operate honestly, fairly, and efficiently within
             2837      the purposes of this chapter[;].
             2838          [(b) except as provided in Subsection (3), may not have]
             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          [(iii) in the 10 years preceding the day on which an application is submitted to the
             2847      division of:]
             2848          [(A) a felony or class A misdemeanor involving moral turpitude; or]
             2849          [(B) a crime in another jurisdiction that is the equivalent of a felony or class A
             2850      misdemeanor involving moral turpitude;]
             2851          [(iv)] (b) in the five years preceding the day on which an application is submitted to
             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          [(A)] (i) a class B or class C misdemeanor involving moral turpitude; or
             2855          [(B)] (ii) a crime in another jurisdiction that is the equivalent of a class B or class C
             2856      misdemeanor involving moral turpitude;
             2857          (c) [if the applicant will engage in an activity as a loan originator, may not have] had a


             2858      license as a mortgage loan originator revoked by a governmental jurisdiction at any time;
             2859          (d) [except as provided in Subsection (3), may not have] had a license or registration
             2860      suspended, [revoked,] surrendered, canceled, or denied in the five years preceding the date the
             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, [revocation,] surrender, [probation, fine,] cancellation, or denial is
             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) [except as provided in Subsection (3), may not have] been the subject of a bar by
             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; [and] or
             2871          (f) [may not have] had a [temporary or] permanent injunction entered against the
             2872      individual:
             2873          (i) by a court or [licensing] administrative agency; and
             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          [(2) To qualify for licensure under this chapter an entity may not have:]
             2878          [(a) any of the following individuals in management]
             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 [(1)] (2) for an individual [who will engage in an
             2881      activity as a loan originator:] applicant.
             2882          [(i) a manager or a managing partner;]
             2883          [(ii) a director;]
             2884          [(iii) an executive officer; or]
             2885          [(iv) an individual occupying a position or performing functions similar to those


             2886      described in Subsections (2)(a)(i) through (iii); or]
             2887          [(b) a principal lending manager who fails to meet the requirements of Subsection (1)
             2888      for an individual who will engage in an activity as a loan originator.]
             2889          [(3) (a) Notwithstanding the failure to meet the requirements of Subsections (1)(b)(iii),
             2890      (b)(iv), (d), (e), and (f) and except as provided in Subsection (3)(b), the division may permit a
             2891      person to be licensed under this chapter if the individual applicant or a person listed in
             2892      Subsection (2):]
             2893          [(i) fails to meet the requirements of Subsections (1)(b)(iii), (b)(iv), (d), (e), and (f);]
             2894          [(ii) otherwise meets the qualifications for licensure; and]
             2895          [(iii) provides evidence satisfactory to the division with the concurrence of the
             2896      commission that the individual applicant or person described in Subsection (2):]
             2897          [(A) is of good moral character;]
             2898          [(B) is honest;]
             2899          [(C) has integrity;]
             2900          [(D) is truthful; and]
             2901          [(E) has the competency to transact the business of residential mortgage loans.]
             2902          [(b) The division may not license an individual under this Subsection (3) if that
             2903      individual will engage in an activity as a loan originator.]
             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 [one or more of the following:] the education described in
             2921      Subsection (2)(a).
             2922          [(i) prelicensing education; or]
             2923          [(ii) continuing education.]
             2924          (d) [The] (i) Upon request, the division shall make available to the public a list of the
             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 [an] a person as a certified education provider, the division by rule
             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 [officer] loan originator who
             2937      has not completed the prelicensing education required by this section:
             2938          (A) before taking the one or more licensing [examination] examinations required by
             2939      Subsection (4); [and]
             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      except that the division shall require that a person who will engage in an activity as a loan
             2943      originator complete at least 20 hours of approved prelicensing education courses that include
             2944      at least:]; and
             2945          [(I) three hours of federal law and regulation;]
             2946          [(II) three hours of ethics that includes instruction on fraud, consumer protection, and
             2947      fair lending issues; and]
             2948          [(III) two hours of training related to lending standards for the nontraditional mortgage
             2949      product marketplace;]
             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 [; or]:
             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) [the division may not] license an individual under this chapter as a principal
             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)[(c)](b), the appropriate number of
             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[, except that at a minimum the continuing education required for a person who
             2967      engages in an activity as a loan originator shall include at least eight hours annually of
             2968      approved continuing education courses that include at least:]; and
             2969          [(A) three hours of federal law and regulations;]


             2970          [(B) two hours of ethics, that include instruction on fraud, consumer protection, and
             2971      fair lending issues; and]
             2972          [(C) two hours of training related to lending standards for the nontraditional mortgage
             2973      product marketplace; and]
             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 [a licensing examination] the one or more licensing examinations that:
             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          [(A) includes the qualified written test developed by the nationwide database; and]
             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          [(A) includes the qualified written test developed by the nationwide database; and]
             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      [licensing examination, prelicensing education, and continuing education] Utah-specific
             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      [requirements] requirement:
             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 [eight hours of] minimum continuing
             3024      education required under [Subsection (3)(b)(iii)] federal licensing regulations for an individual
             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 [is valid for one year.] expires as follows:
             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 annually on December 31.