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H.B. 91 Enrolled

             1     

REAL ESTATE RELATED AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gage Froerer

             5     
Senate Sponsor: J. Stuart Adams

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to real estate in general and the Division of Real
             10      Estate to address the regulation of activities involving real estate.
             11      Highlighted Provisions:
             12          This bill:
             13          .    amends the Utah Uniform Land Sales Practices Act, including:
             14              .    modifying penalties; and
             15              .    repealing extradition proceedings;
             16          .    modifies the Utah Residential Mortgage Practices and Licensing Act, including:
             17              .    modifying the definition provisions;
             18              .    addressing payments to the division that are dishonored;
             19              .    addressing the establishment of fees;
             20              .    addressing qualifications for licensure and criminal histories;
             21              .    providing for enforcement of reporting requirements;
             22              .    modifying prohibited conduct;
             23              .    addressing recordkeeping requirements; and
             24              .    allowing for de novo review under certain circumstances;
             25          .    modifies the Appraisal Management Company Registration and Regulation Act,
             26      including:
             27              .    modifying the definition provisions;
             28              .    addressing when board action is taken with the concurrence of the division;
             29              .    addressing payments to the division that are dishonored;


             30              .    expanding provisions related to criminal histories;
             31              .    allowing the board to delegate to the division certain hearings;
             32              .    providing for the extension of the term of a license;
             33              .    modifying prohibited conduct;
             34              .    providing for the payment of certain costs related to investigations;
             35              .    increasing the amount of a civil penalty; and
             36              .    addressing the contents and affect of an order;
             37          .    modifies the Real Estate Licensing and Practices Act, including:
             38              .    modifying the definition provisions;
             39              .    addressing payments to the division that are dishonored;
             40              .    providing for de novo review in certain circumstances;
             41              .    addressing criminal histories;
             42              .    addressing when the division may extend the term of a license;
             43              .    providing for the enforcement of reporting requirements; and
             44              .    modifying grounds for disciplinary conduct;
             45          .    renumbers and amends the Real Estate Appraiser Licensing and Certification Act,
             46      including:
             47              .    addressing when the board may take action with the concurrence of the division;
             48              .    addressing criminal histories;
             49              .    addressing when the division may extend the term of a license;
             50              .    modifying reinstatement requirements; and
             51              .    allowing the board to delegate certain actions to the division; and
             52          .    makes technical and conforming amendments.
             53      Money Appropriated in this Bill:
             54          None
             55      Other Special Clauses:
             56          None
             57      Utah Code Sections Affected:


             58      AMENDS:
             59          7-5-1, as last amended by Laws of Utah 2003, Chapter 301
             60          13-21-2, as last amended by Laws of Utah 2008, Chapter 250
             61          16-11-2, as last amended by Laws of Utah 2010, Chapter 379
             62          17-17-2, as last amended by Laws of Utah 2010, Chapter 131
             63          31A-2-402, as last amended by Laws of Utah 2010, Chapter 379
             64          31A-23a-402, as last amended by Laws of Utah 2008, Chapter 382
             65          48-2c-1502, as last amended by Laws of Utah 2010, Chapter 379
             66          53C-4-103, as enacted by Laws of Utah 2008, Chapter 203
             67          57-11-16, as last amended by Laws of Utah 2009, Chapter 352
             68          59-1-404, as last amended by Laws of Utah 2008, Chapter 382
             69          59-2-701, as last amended by Laws of Utah 2001, Chapter 214
             70          61-2-201, as renumbered and amended by Laws of Utah 2010, Chapter 379
             71          61-2c-102, as last amended by Laws of Utah 2010, Chapters 184, 379 and last amended
             72      by Coordination Clause, Laws of Utah 2010, Chapter 379
             73          61-2c-103, as last amended by Laws of Utah 2010, Chapter 379
             74          61-2c-202, as last amended by Laws of Utah 2010, Chapter 379
             75          61-2c-203, as last amended by Laws of Utah 2010, Chapter 379
             76          61-2c-205, as last amended by Laws of Utah 2010, Chapter 379
             77          61-2c-301, as last amended by Laws of Utah 2010, Chapters 184 and 379
             78          61-2c-302, as last amended by Laws of Utah 2010, Chapter 379
             79          61-2c-402, as last amended by Laws of Utah 2010, Chapter 379
             80          61-2c-501.5, as enacted by Laws of Utah 2010, Chapter 379
             81          61-2c-507, as last amended by Laws of Utah 2010, Chapter 379
             82          61-2e-102, as enacted by Laws of Utah 2009, Chapter 269
             83          61-2e-103, as enacted by Laws of Utah 2009, Chapter 269
             84          61-2e-202, as enacted by Laws of Utah 2009, Chapter 269
             85          61-2e-203, as enacted by Laws of Utah 2009, Chapter 269


             86          61-2e-204, as enacted by Laws of Utah 2009, Chapter 269
             87          61-2e-301, as enacted by Laws of Utah 2009, Chapter 269
             88          61-2e-307, as enacted by Laws of Utah 2009, Chapter 269
             89          61-2e-401, as enacted by Laws of Utah 2009, Chapter 269
             90          61-2e-402, as enacted by Laws of Utah 2009, Chapter 269
             91          61-2f-102, as last amended by Laws of Utah 2010, Chapter 184 and renumbered and
             92      amended by Laws of Utah 2010, Chapter 379 and last amended by Coordination
             93      Clause, Laws of Utah 2010, Chapter 379
             94          61-2f-105, as enacted by Laws of Utah 2010, Chapter 379
             95          61-2f-202, as last amended by Laws of Utah 2010, Chapter 184 and renumbered and
             96      amended by Laws of Utah 2010, Chapter 379
             97          61-2f-203, as renumbered and amended by Laws of Utah 2010, Chapter 379
             98          61-2f-204, as renumbered and amended by Laws of Utah 2010, Chapter 379
             99          61-2f-206, as enacted by Laws of Utah 2010, Chapter 379
             100          61-2f-301, as renumbered and amended by Laws of Utah 2010, Chapter 379
             101          61-2f-401, as last amended by Laws of Utah 2010, Chapter 184 and renumbered and
             102      amended by Laws of Utah 2010, Chapter 379
             103          63A-5-220, as last amended by Laws of Utah 2010, Chapter 278
             104          63A-5-401, as enacted by Laws of Utah 2008, Chapter 203
             105          70D-1-102, as renumbered and amended by Laws of Utah 2009, Chapter 72
             106          72-5-117, as enacted by Laws of Utah 2008, Chapter 203
             107          79-2-403, as renumbered and amended by Laws of Utah 2009, Chapter 344
             108      ENACTS:
             109          61-2g-302, Utah Code Annotated 1953
             110          61-2g-303, Utah Code Annotated 1953
             111      RENUMBERS AND AMENDS:
             112          61-2g-101, (Renumbered from 61-2b-1, as last amended by Laws of Utah 1999,
             113      Chapter 117)


             114          61-2g-102, (Renumbered from 61-2b-2, as last amended by Laws of Utah 2010,
             115      Chapter 379)
             116          61-2g-103, (Renumbered from 61-2b-25, as last amended by Laws of Utah 2010,
             117      Chapter 379)
             118          61-2g-201, (Renumbered from 61-2b-6, as last amended by Laws of Utah 2010,
             119      Chapter 379)
             120          61-2g-202, (Renumbered from 61-2b-37, as last amended by Laws of Utah 2009,
             121      Chapter 183)
             122          61-2g-203, (Renumbered from 61-2b-38, as last amended by Laws of Utah 2005,
             123      Chapter 199)
             124          61-2g-204, (Renumbered from 61-2b-7, as last amended by Laws of Utah 2010,
             125      Chapter 286)
             126          61-2g-205, (Renumbered from 61-2b-8, as last amended by Laws of Utah 2010,
             127      Chapter 379)
             128          61-2g-301, (Renumbered from 61-2b-3, as last amended by Laws of Utah 2010,
             129      Chapter 379)
             130          61-2g-304, (Renumbered from 61-2b-18, as last amended by Laws of Utah 2010,
             131      Chapter 379)
             132          61-2g-305, (Renumbered from 61-2b-19, as last amended by Laws of Utah 2010,
             133      Chapter 379)
             134          61-2g-306, (Renumbered from 61-2b-20, as last amended by Laws of Utah 2010,
             135      Chapter 379)
             136          61-2g-307, (Renumbered from 61-2b-40, as last amended by Laws of Utah 2010,
             137      Chapter 379)
             138          61-2g-308, (Renumbered from 61-2b-22, as last amended by Laws of Utah 2008,
             139      Chapters 382 and 387)
             140          61-2g-309, (Renumbered from 61-2b-21, as last amended by Laws of Utah 2008,
             141      Chapters 382 and 387)


             142          61-2g-310, (Renumbered from 61-2b-23, as last amended by Laws of Utah 1999,
             143      Chapter 117)
             144          61-2g-311, (Renumbered from 61-2b-10, as last amended by Laws of Utah 2010,
             145      Chapter 379)
             146          61-2g-312, (Renumbered from 61-2b-13, as last amended by Laws of Utah 2001,
             147      Chapter 214)
             148          61-2g-313, (Renumbered from 61-2b-14, as last amended by Laws of Utah 2010,
             149      Chapter 379)
             150          61-2g-314, (Renumbered from 61-2b-15, as last amended by Laws of Utah 2010,
             151      Chapter 379)
             152          61-2g-315, (Renumbered from 61-2b-24, as last amended by Laws of Utah 2008,
             153      Chapter 387)
             154          61-2g-401, (Renumbered from 61-2b-17, as last amended by Laws of Utah 2010,
             155      Chapter 379)
             156          61-2g-402, (Renumbered from 61-2b-26, as last amended by Laws of Utah 2008,
             157      Chapter 387)
             158          61-2g-403, (Renumbered from 61-2b-27, as last amended by Laws of Utah 2009,
             159      Chapter 352)
             160          61-2g-404, (Renumbered from 61-2b-32, as last amended by Laws of Utah 2010,
             161      Chapter 379)
             162          61-2g-405, (Renumbered from 61-2b-34, as last amended by Laws of Utah 2005,
             163      Chapter 199)
             164          61-2g-406, (Renumbered from 61-2b-36, as last amended by Laws of Utah 2010,
             165      Chapter 379)
             166          61-2g-407, (Renumbered from 61-2b-41, as enacted by Laws of Utah 1996, Chapter
             167      131)
             168          61-2g-501, (Renumbered from 61-2b-28, as last amended by Laws of Utah 2010,
             169      Chapter 379)


             170          61-2g-502, (Renumbered from 61-2b-29, as last amended by Laws of Utah 2010,
             171      Chapter 379)
             172          61-2g-503, (Renumbered from 61-2b-30.5, as last amended by Laws of Utah 2010,
             173      Chapter 379)
             174          61-2g-504, (Renumbered from 61-2b-31, as last amended by Laws of Utah 2008,
             175      Chapters 3 and 387)
             176          61-2g-505, (Renumbered from 61-2b-33, as last amended by Laws of Utah 2010,
             177      Chapter 379)
             178      REPEALS:
             179          57-11-19, as enacted by Laws of Utah 1973, Chapter 158
             180          61-2b-5, as enacted by Laws of Utah 1990, Chapter 212
             181          61-2b-9, as last amended by Laws of Utah 2005, Chapter 199
             182          61-2b-30, as last amended by Laws of Utah 2008, Chapter 382
             183          61-2b-39, as last amended by Laws of Utah 2010, Chapter 379
             184     
             185      Be it enacted by the Legislature of the state of Utah:
             186          Section 1. Section 7-5-1 is amended to read:
             187           7-5-1. Definitions -- Allowable trust companies -- Exceptions.
             188          (1) As used in this chapter:
             189          (a) "Business trust" means an entity engaged in a trade or business that is created by a
             190      declaration of trust that transfers property to trustees, to be held and managed by them for the
             191      benefit of persons holding certificates representing the beneficial interest in the trust estate and
             192      assets.
             193          (b) "Trust business" means, except as provided in Subsection (1)(c), a business in
             194      which one acts in any agency or fiduciary capacity, including that of personal representative,
             195      executor, administrator, conservator, guardian, assignee, receiver, depositary, or trustee under
             196      appointment as trustee for any purpose permitted by law, including the definition of "trust" set
             197      forth in Subsection 75-1-201 [(53)](55).


             198          (c) "Trust business" does not include the following means of holding [funds] money,
             199      assets, or other property:
             200          (i) [funds] money held in a client trust account by an attorney authorized to practice
             201      law in this state;
             202          (ii) [funds] money held in connection with the purchase or sale of real estate by a
             203      person [authorized to act as a real estate broker in this state] licensed as a principal broker in
             204      accordance with Title 61, Chapter 2f, Real Estate Licensing and Practices Act;
             205          (iii) [funds] money or other assets held in escrow by a person authorized by the
             206      department in accordance with Chapter 22, Regulation of Independent Escrow Agents, or by
             207      the Utah Insurance Department to act as an escrow agent in this state;
             208          (iv) [funds] money held by a homeowners' association or similar organization to pay
             209      maintenance and other related costs for commonly owned property;
             210          (v) [funds] money held in connection with the collection of debts or payments on loans
             211      by a person acting solely as the agent or representative or otherwise at the sole direction of the
             212      person to which the debt or payment is owed, including [funds] money held by an escrow agent
             213      for payment of taxes or insurance;
             214          (vi) [funds] money and other assets held in trust on an occasional or isolated basis by a
             215      person who does not represent that [he] the person is engaged in the trust business in Utah;
             216          (vii) [funds] money or other assets found by a court to be held in an implied, resulting,
             217      or constructive trust;
             218          (viii) [funds] money or other assets held by a court appointed conservator, guardian,
             219      receiver, trustee, or other fiduciary if:
             220          (A) the conservator, receiver, guardian, trustee, or other fiduciary is responsible to the
             221      court in the same manner as a personal representative under Title 75, Chapter 3, Part 5,
             222      Supervised Administration, or as a receiver under Rule 66, Utah Rules of Civil Procedure;
             223          (B) the conservator, trustee, or other fiduciary is a certified public accountant or has
             224      qualified for and received a designation as a certified financial planner, chartered financial
             225      consultant, certified financial analyst, or similar designation suitable to the court, that


             226      evidences the conservator's, trustee's, or other fiduciary's professional competence to manage
             227      financial matters;
             228          (C) no trust company is willing or eligible to serve as conservator, guardian, trustee, or
             229      receiver after notice has been given pursuant to Section 75-1-401 to all trust companies doing
             230      business in this state, including a statement of the value of the assets to be managed[. That],
             231      that notice need not be provided, however, if a trust company has been employed by the
             232      fiduciary to manage the assets; and
             233          (D) in the event guardianship services are needed, the person seeking appointment as a
             234      guardian under this Subsection (1) is a specialized care professional, as that term is defined in
             235      Section 75-5-311 , or a business or state agency that employs the services of one of those
             236      professionals for the purpose of caring for the incapacitated person, so long as the specialized
             237      care professional, business, or state agency does not:
             238          (I) profit financially or otherwise from, or receive compensation for acting in that
             239      capacity, except for the direct costs of providing guardianship or conservatorship services; or
             240          (II) otherwise have a conflict of interest in providing those services;
             241          (ix) [funds] money or other assets held by a credit services organization operating in
             242      compliance with Title 13, Chapter 21, Credit Services Organizations Act;
             243          (x) [funds] money, securities, or other assets held in a customer account in connection
             244      with the purchase or sale of securities by a regulated securities broker, dealer, or transfer agent;
             245      or
             246          (xi) [funds] money, assets, and other property held in a business trust for the benefit of
             247      holders of certificates of beneficial interest if the fiduciary activities of the business trust are
             248      merely incidental to conducting business in the business trust form.
             249          (d) "Trust company" means an institution authorized to engage in the trust business
             250      under this chapter. Only the following may be a trust company:
             251          (i) a Utah depository institution or its wholly owned subsidiary;
             252          (ii) an out-of-state depository institution authorized to engage in business as a
             253      depository institution in Utah or its wholly owned subsidiary;


             254          (iii) a corporation, including a credit union service organization, owned entirely by one
             255      or more federally insured depository institutions as defined in Subsection 7-1-103 (8);
             256          (iv) a direct or indirect subsidiary of a depository institution holding company that also
             257      has a direct or indirect subsidiary authorized to engage in business as a depository institution in
             258      Utah; and
             259          (v) any other corporation continuously and lawfully engaged in the trust business in
             260      this state since before July 1, 1981.
             261          (2) Only a trust company may engage in the trust business in this state.
             262          (3) The requirements of this chapter do not apply to:
             263          (a) an institution authorized to engage in a trust business in another state that is
             264      engaged in trust activities in this state solely to fulfill its duties as a trustee of a trust created
             265      and administered in another state;
             266          (b) a national bank, federal savings bank, federal savings and loan association, or
             267      federal credit union authorized to engage in business as a depository institution in Utah, or any
             268      wholly owned subsidiary of any of these, to the extent the institution is authorized by its
             269      primary federal regulator to engage in the trust business in this state; or
             270          (c) a state agency that is otherwise authorized by statute to act as a conservator,
             271      receiver, guardian, trustee, or in any other fiduciary capacity.
             272          Section 2. Section 13-21-2 is amended to read:
             273           13-21-2. Definitions -- Exemptions.
             274          As used in this chapter:
             275          (1) "Buyer" means an individual who is solicited to purchase or who purchases the
             276      services of a credit services organization.
             277          (2) "Credit reporting agency" means a person who, for a monetary fee, dues, or on a
             278      cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling
             279      or evaluating consumer credit information or other information on consumers for the purpose
             280      of furnishing consumer reports to third persons.
             281          (3) (a) "Credit services organization" means a person who represents that the person or


             282      an employee is a debt professional or credit counselor, or, with respect to the extension of
             283      credit by others, sells, provides, or performs, or represents that the person can or will sell,
             284      provide, or perform, in return for the payment of money or other valuable consideration any of
             285      the following services:
             286          (i) improving a buyer's credit record, history, or rating;
             287          (ii) providing advice, assistance, instruction, or instructional materials to a buyer with
             288      regard to Subsection (3)(a)(i); or
             289          (iii) debt reduction or debt management plans.
             290          (b) "Credit services organization" does not include:
             291          (i) a person authorized to make loans or extensions of credit under the laws of this state
             292      or the United States who is subject to regulation and supervision by this state or the United
             293      States and who derives at least 35% of the person's income from making loans and extensions
             294      of credit;
             295          (ii) a depository institution:
             296          (A) as defined in Section 7-1-103 ; or
             297          (B) that is regulated or supervised by the Federal Deposit Insurance Corporation or the
             298      National Credit Union Administration;
             299          (iii) a person licensed as a [real estate broker by this state] principal broker under Title
             300      61, Chapter 2f, Real Estate Licensing and Practices Act, if the person is acting within the
             301      course and scope of that license;
             302          (iv) a person licensed to practice law in this state if:
             303          (A) the person renders the services described in Subsection (3)(a) within the course and
             304      scope of the person's practice as an attorney; and
             305          (B) the services described in Subsection (3)(a) are incidental to the person's practice as
             306      an attorney;
             307          (v) a broker-dealer registered with the Securities and Exchange Commission or the
             308      Commodity Futures Trading Commission if the broker-dealer is acting within the course and
             309      scope of that regulation;


             310          (vi) a credit reporting agency if the services described in Subsection (3)(a) are
             311      incidental to the credit reporting agency's services; or
             312          (vii) a person who provides debt-management services and is required to be registered
             313      under Title 13, Chapter 42, Uniform Debt-Management Services Act.
             314          (4) "Extension of credit" means the right to defer payment of debt or to incur debt and
             315      defer its payment, offered or granted primarily for personal, family, or household purposes.
             316          Section 3. Section 16-11-2 is amended to read:
             317           16-11-2. Definitions.
             318          As used in this chapter:
             319          (1) "Filed" means the division has received and approved, as to form, a document
             320      submitted under [the provisions of] this chapter, and has marked on the face of the document a
             321      stamp or seal indicating the time of day and date of approval, the name of the division, the
             322      division director's signature and division seal, or facsimiles of the signature or seal.
             323          (2) "Professional corporation" means a corporation organized under this chapter.
             324          (3) "Professional service" means the personal service rendered by:
             325          (a) a physician, surgeon, or doctor of medicine holding a license under Title 58,
             326      Chapter 67, Utah Medical Practice Act, and any subsequent laws regulating the practice of
             327      medicine;
             328          (b) a doctor of dentistry holding a license under Title 58, Chapter 69, Dentist and
             329      Dental Hygienist Practice Act, and any subsequent laws regulating the practice of dentistry;
             330          (c) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
             331      Utah Osteopathic Medical Practice Act, and any subsequent laws regulating the practice of
             332      osteopathy;
             333          (d) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
             334      Practice Act, and any subsequent laws regulating the practice of [chiropractic] chiropractics;
             335          (e) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
             336      Physician Licensing Act, and any subsequent laws regulating the practice of podiatry;
             337          (f) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry


             338      Practice Act, and any subsequent laws regulating the practice of optometry;
             339          (g) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice Act,
             340      and any subsequent laws regulating the practice of veterinary medicine;
             341          (h) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
             342      and any subsequent laws regulating the practice of architecture;
             343          (i) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
             344      Accountant Licensing Act, and any subsequent laws regulating the practice of public
             345      accounting;
             346          (j) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician
             347      Practice Act, and any subsequent laws regulating the practice of naturopathy;
             348          (k) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice Act,
             349      and any subsequent laws regulating the practice of pharmacy;
             350          (l) an attorney granted the authority to practice law by:
             351          (i) the Utah Supreme Court; or
             352          (ii) the Supreme Court, other court, agency, instrumentality, or regulating board that
             353      licenses or regulates the authority to practice law in any state or territory of the United States
             354      other than Utah;
             355          (m) a professional engineer registered under Title 58, Chapter 22, Professional
             356      Engineers and Professional Land Surveyors Licensing Act;
             357          (n) a principal broker, associate broker, or sales agent holding a license under Title 61,
             358      Chapter 2f, Real Estate Licensing and Practices Act, and any subsequent laws regulating the
             359      selling, exchanging, purchasing, renting, or leasing of real estate;
             360          (o) a psychologist holding a license under Title 58, Chapter 61, Psychologist Licensing
             361      Act, and any subsequent laws regulating the practice of psychology;
             362          (p) a clinical or certified social worker holding a license under Title 58, Chapter 60,
             363      Part 2, Social Worker Licensing Act, and any subsequent laws regulating the practice of social
             364      work;
             365          (q) a physical therapist holding a license under Title 58, Chapter 24b, Physical Therapy


             366      Practice Act, and any subsequent laws regulating the practice of physical therapy;
             367          (r) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
             368      Chapter 44a, Nurse Midwife Practice Act;
             369          (s) a landscape architect licensed under Title 58, Chapter 53, Landscape Architects
             370      Licensing Act, and any subsequent laws regulating landscape architects; or
             371          (t) an individual licensed, certified, or registered under Title 61, Chapter [2b] 2g, Real
             372      Estate Appraiser Licensing and Certification Act, and any subsequent laws regulating the
             373      practice of appraising real estate.
             374          (4) "Regulating board" means the board that is charged with the licensing and
             375      regulation of the practice of the profession which the professional corporation is organized to
             376      render. The definitions of Title 16, Chapter 10a, Utah Revised Business Corporation Act,
             377      apply to this chapter unless the context clearly indicates that a different meaning is intended.
             378          Section 4. Section 17-17-2 is amended to read:
             379           17-17-2. Assessor to be state qualified -- Vacancy -- Filling vacancy.
             380          (1) (a) Except as provided in Subsection (1)(b), in addition to the requirements of
             381      Section 17-16-1 , any person elected to the office of county assessor after November 1, 1993,
             382      shall be a state-licensed or state-certified appraiser as defined in Title 61, Chapter [2b] 2g, Real
             383      Estate Appraiser Licensing and Certification Act, [prior to] before the expiration of 36 months
             384      from the day on which [his] the person's term of office begins.
             385          (b) Notwithstanding Subsection (1)(a), a county assessor of a county of the first
             386      through third class shall be a state-licensed or state-certified appraiser as defined in Title 61,
             387      Chapter [2b] 2g, Real Estate Appraiser Licensing and Certification Act, [prior to] before filing
             388      for office if the county assessor is:
             389          (i) elected to the office of county assessor on or after January 1, 2010; or
             390          (ii) selected to fill the vacancy of a county assessor as described in Subsection (2).
             391          (2) (a) If an assessor fails to meet the requirement of this section, the assessor's office
             392      is automatically vacant.
             393          (b) (i) (A) If a vacancy occurs under this section, the county legislative body shall fill


             394      the vacancy in the manner provided in Sections 17-53-104 and 20A-1-508 .
             395          (B) A person selected to fill the vacancy shall be a state-licensed or state-certified
             396      appraiser before assuming the office of county assessor.
             397          (ii) If a state-licensed or state-certified appraiser cannot be found to fill a vacancy
             398      which resulted from the requirements of this section, the county legislative body may contract
             399      with a state-licensed or state-certified appraiser from outside the county to fill the remainder of
             400      the term in the office of county assessor.
             401          Section 5. Section 31A-2-402 is amended to read:
             402           31A-2-402. Definitions.
             403          As used in this part:
             404          (1) "Commission" means the Title and Escrow Commission created in Section
             405      31A-2-403 .
             406          (2) "Concurrence" means the entities given a concurring role must jointly agree for the
             407      action to be taken.
             408          (3) "Dual licensed title licensee" means a title licensee who holds:
             409          (a) a producer license as a title licensee; and
             410          (b) a license or certificate under:
             411          (i) Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act;
             412          [(i)] (ii) Title 61, Chapter 2f, Real Estate Licensing and Practices Act; or
             413          [(ii)] (iii) Title 61, Chapter [2b] 2g, Real Estate Appraiser Licensing and Certification
             414      Act[; or].
             415          [(iii) Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act.]
             416          (4) "Real Estate Commission" means the Real Estate Commission created in Section
             417      61-2f-103 .
             418          (5) "Title licensee" means a person licensed under this title as:
             419          (a) an agency with a title insurance line of authority;
             420          (b) a producer with:
             421          (i) a general title insurance line of authority; or


             422          (ii) a specific category of authority for title insurance; or
             423          (c) a title insurance adjuster.
             424          Section 6. Section 31A-23a-402 is amended to read:
             425           31A-23a-402. Unfair marketing practices -- Communication -- Inducement --
             426      Unfair discrimination -- Coercion or intimidation -- Restriction on choice.
             427          (1) (a) (i) Any of the following may not make or cause to be made any communication
             428      that contains false or misleading information, relating to an insurance product or contract, any
             429      insurer, or any licensee under this title, including information that is false or misleading
             430      because it is incomplete:
             431          (A) a person who is or should be licensed under this title;
             432          (B) an employee or producer of a person described in Subsection (1)(a)(i)(A);
             433          (C) a person whose primary interest is as a competitor of a person licensed under this
             434      title; and
             435          (D) a person on behalf of any of the persons listed in this Subsection (1)(a)(i).
             436          (ii) As used in this Subsection (1), "false or misleading information" includes:
             437          (A) assuring the nonobligatory payment of future dividends or refunds of unused
             438      premiums in any specific or approximate amounts, but reporting fully and accurately past
             439      experience is not false or misleading information; and
             440          (B) with intent to deceive a person examining it:
             441          (I) filing a report;
             442          (II) making a false entry in a record; or
             443          (III) wilfully refraining from making a proper entry in a record.
             444          (iii) A licensee under this title may not:
             445          (A) use any business name, slogan, emblem, or related device that is misleading or
             446      likely to cause the insurer or other licensee to be mistaken for another insurer or other licensee
             447      already in business; or
             448          (B) use any advertisement or other insurance promotional material that would cause a
             449      reasonable person to mistakenly believe that a state or federal government agency:


             450          (I) is responsible for the insurance sales activities of the person;
             451          (II) stands behind the credit of the person;
             452          (III) guarantees any returns on insurance products of or sold by the person; or
             453          (IV) is a source of payment of any insurance obligation of or sold by the person.
             454          (iv) A person who is not an insurer may not assume or use any name that deceptively
             455      implies or suggests that person is an insurer.
             456          (v) A person other than persons licensed as health maintenance organizations under
             457      Chapter 8 may not use the term "Health Maintenance Organization" or "HMO" in referring to
             458      itself.
             459          (b) A licensee's violation creates a rebuttable presumption that the violation was also
             460      committed by the insurer if:
             461          (i) the licensee under this title distributes cards or documents, exhibits a sign, or
             462      publishes an advertisement that violates Subsection (1)(a), with reference to a particular
             463      insurer:
             464          (A) that the licensee represents; or
             465          (B) for whom the licensee processes claims; and
             466          (ii) the cards, documents, signs, or advertisements are supplied or approved by that
             467      insurer.
             468          (2) (a) (i) A licensee under this title, or an officer or employee of a licensee may not
             469      induce any person to enter into or continue an insurance contract or to terminate an existing
             470      insurance contract by offering benefits not specified in the policy to be issued or continued,
             471      including premium or commission rebates.
             472          (ii) An insurer may not make or knowingly allow any agreement of insurance that is
             473      not clearly expressed in the policy to be issued or renewed.
             474          (iii) This Subsection (2)(a) does not preclude:
             475          (A) an insurer from reducing premiums because of expense savings;
             476          (B) an insurer from providing to a policyholder or insured one or more incentives to
             477      participate in programs or activities designed to reduce claims or claim expenses;


             478          (C) the usual kinds of social courtesies not related to particular transactions; or
             479          (D) an insurer from receiving premiums under an installment payment plan.
             480          (iv) The commissioner may adopt rules in accordance with Title 63G, Chapter 3, Utah
             481      Administrative Rulemaking Act, to define what constitutes an incentive described in
             482      Subsection (2)(a)(iii)(B).
             483          (b) A licensee under this title may not absorb the tax under Section 31A-3-301 .
             484          (c) (i) A title insurer or producer or any officer or employee of either may not pay,
             485      allow, give, or offer to pay, allow, or give, directly or indirectly, as an inducement to obtaining
             486      any title insurance business:
             487          (A) any rebate, reduction, or abatement of any rate or charge made incident to the
             488      issuance of the title insurance;
             489          (B) any special favor or advantage not generally available to others; [or]
             490          (C) any money or other consideration, except if approved under Section 31A-2-405 ; or
             491          (D) material inducement.
             492          (ii) "Charge made incident to the issuance of the title insurance" includes escrow
             493      charges, and any other services that are prescribed in rule by the Title and Escrow Commission
             494      after consultation with the commissioner and subject to Section 31A-2-404 .
             495          (iii) An insured or any other person connected, directly or indirectly, with the
             496      transaction[, including a mortgage lender, real estate broker, builder, attorney, or any officer,
             497      employee, or agent of any of them,] may not knowingly receive or accept, directly or indirectly,
             498      any benefit referred to in Subsection (2)(c)(i)[.], including:
             499          (A) a person licensed under Title 61, Chapter 2c, Utah Residential Mortgage Practices
             500      and Licensing Act;
             501          (B) a person licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices
             502      Act;
             503          (C) a builder;
             504          (D) an attorney; or
             505          (E) an officer, employee, or agent of a person listed in this Subsection (2)(c)(iii).


             506          (3) (a) An insurer may not unfairly discriminate among policyholders by charging
             507      different premiums or by offering different terms of coverage, except on the basis of
             508      classifications related to the nature and the degree of the risk covered or the expenses involved.
             509          (b) Rates are not unfairly discriminatory if they are averaged broadly among persons
             510      insured under a group, blanket, or franchise policy, and the terms of those policies are not
             511      unfairly discriminatory merely because they are more favorable than in similar individual
             512      policies.
             513          (4) (a) This Subsection (4) applies to:
             514          (i) a person who is or should be licensed under this title;
             515          (ii) an employee of that licensee or person who should be licensed;
             516          (iii) a person whose primary interest is as a competitor of a person licensed under this
             517      title; and
             518          (iv) one acting on behalf of any person described in Subsections (4)(a)(i) through (iii).
             519          (b) A person described in Subsection (4)(a) may not commit or enter into any
             520      agreement to participate in any act of boycott, coercion, or intimidation that:
             521          (i) tends to produce:
             522          (A) an unreasonable restraint of the business of insurance; or
             523          (B) a monopoly in that business; or
             524          (ii) results in an applicant purchasing or replacing an insurance contract.
             525          (5) (a) (i) Subject to Subsection (5)(a)(ii), a person may not restrict in the choice of an
             526      insurer or licensee under this chapter, another person who is required to pay for insurance as a
             527      condition for the conclusion of a contract or other transaction or for the exercise of any right
             528      under a contract.
             529          (ii) A person requiring coverage may reserve the right to disapprove the insurer or the
             530      coverage selected on reasonable grounds.
             531          (b) The form of corporate organization of an insurer authorized to do business in this
             532      state is not a reasonable ground for disapproval, and the commissioner may by rule specify
             533      additional grounds that are not reasonable. This Subsection (5) does not bar an insurer from


             534      declining an application for insurance.
             535          (6) A person may not make any charge other than insurance premiums and premium
             536      financing charges for the protection of property or of a security interest in property, as a
             537      condition for obtaining, renewing, or continuing the financing of a purchase of the property or
             538      the lending of money on the security of an interest in the property.
             539          (7) (a) A licensee under this title may not refuse or fail to return promptly all indicia of
             540      agency to the principal on demand.
             541          (b) A licensee whose license is suspended, limited, or revoked under Section
             542      31A-2-308 , 31A-23a-111 , or 31A-23a-112 may not refuse or fail to return the license to the
             543      commissioner on demand.
             544          (8) (a) A person may not engage in any other unfair method of competition or any other
             545      unfair or deceptive act or practice in the business of insurance, as defined by the commissioner
             546      by rule, after a finding that they:
             547          (i) are misleading;
             548          (ii) are deceptive;
             549          (iii) are unfairly discriminatory;
             550          (iv) provide an unfair inducement; or
             551          (v) unreasonably restrain competition.
             552          (b) Notwithstanding Subsection (8)(a), for purpose of the title insurance industry, the
             553      Title and Escrow Commission shall make rules, subject to Section 31A-2-404 , that define any
             554      other unfair method of competition or any other unfair or deceptive act or practice after a
             555      finding that they:
             556          (i) are misleading;
             557          (ii) are deceptive;
             558          (iii) are unfairly discriminatory;
             559          (iv) provide an unfair inducement; or
             560          (v) unreasonably restrain competition.
             561          Section 7. Section 48-2c-1502 is amended to read:


             562           48-2c-1502. Definitions.
             563          As used in this part:
             564          (1) "Professional services company" means a limited liability company organized
             565      under this part to render professional services.
             566          (2) "Professional services" means the personal services rendered by:
             567          (a) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
             568      and any subsequent laws regulating the practice of architecture;
             569          (b) an attorney granted the authority to practice law by the:
             570          (i) Supreme Court of Utah; or
             571          (ii) the Supreme Court, other court, agency, instrumentality, or regulating board that
             572      licenses or regulates the authority to practice law in any state or territory of the United States
             573      other than Utah;
             574          (c) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
             575      Practice Act, and any subsequent laws regulating the practice of [chiropractic] chiropractics;
             576          (d) a doctor of dentistry holding a license under Title 58, Chapter 69, Dentist and
             577      Dental Hygienist Practice Act, and any subsequent laws, regulating the practice of dentistry;
             578          (e) a professional engineer registered under Title 58, Chapter 22, Professional
             579      Engineers and Professional Land Surveyors Licensing Act;
             580          (f) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician
             581      Practice Act, and any subsequent laws regulating the practice of naturopathy;
             582          (g) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
             583      Chapter 44a, Nurse Midwife Practice Act;
             584          (h) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry
             585      Practice Act, and any subsequent laws regulating the practice of optometry;
             586          (i) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
             587      Utah Osteopathic Medical Practice Act, and any subsequent laws regulating the practice of
             588      osteopathy;
             589          (j) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice Act,


             590      and any subsequent laws regulating the practice of pharmacy;
             591          (k) a physician, surgeon, or doctor of medicine holding a license under Title 58,
             592      Chapter 67, Utah Medical Practice Act, and any subsequent laws regulating the practice of
             593      medicine;
             594          (l) a physical therapist holding a license under Title 58, Chapter 24b, Physical Therapy
             595      Practice Act, and any subsequent laws regulating the practice of physical therapy;
             596          (m) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
             597      Physician Licensing Act, and any subsequent laws regulating the practice of podiatry;
             598          (n) a psychologist holding a license under Title 58, Chapter 61, Psychologist Licensing
             599      Act, and any subsequent laws regulating the practice of psychology;
             600          (o) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
             601      Accountant Licensing Act, and any subsequent laws regulating the practice of public
             602      accounting;
             603          (p) a principal broker, associate broker, or sales agent holding a license under Title 61,
             604      Chapter 2f, Real Estate Licensing and Practices Act, and any subsequent laws regulating the
             605      sale, exchange, purchase, rental, or leasing of real estate;
             606          (q) a clinical or certified social worker holding a license under Title 58, Chapter 60,
             607      Part 2, Social Worker Licensing Act, and any subsequent laws regulating the practice of social
             608      work;
             609          (r) a mental health therapist holding a license under Title 58, Chapter 60, Mental
             610      Health Professional Practice Act, and any subsequent laws regulating the practice of mental
             611      health therapy;
             612          (s) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice Act,
             613      and any subsequent laws regulating the practice of veterinary medicine; or
             614          (t) an individual licensed, certified, or registered under Title 61, Chapter [2b] 2g, Real
             615      Estate Appraiser Licensing and Certification Act, and any subsequent laws regulating the
             616      practice of appraising real estate.
             617          (3) "Regulating board" means the board or agency organized pursuant to state law that


             618      is charged with the licensing and regulation of the practice of the profession that a company is
             619      organized to render.
             620          Section 8. Section 53C-4-103 is amended to read:
             621           53C-4-103. Rulemaking for sale of real property -- Licensed or certified
             622      appraisers -- Exceptions.
             623          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if
             624      the administration buys, sells, or exchanges real property, the administration shall make rules
             625      to ensure that the value of the real property is congruent with the proposed price and other
             626      terms of the purchase, sale, or exchange.
             627          (2) The rules:
             628          (a) shall establish procedures for determining the value of the real property;
             629          (b) may provide that an appraisal, as defined under Section [ 61-2b-2 ] 61-2g-102 ,
             630      demonstrates the real property's value; and
             631          (c) may require that the appraisal be completed by a state-certified general appraiser, as
             632      defined under Section [ 61-2b-2 ] 61-2g-102 .
             633          (3) Subsection (1) does not apply to the purchase, sale, or exchange of real property, or
             634      to an interest in real property:
             635          (a) that is under a contract or other written agreement [prior to] before May 5, 2008; or
             636          (b) with a value of less than $100,000, as estimated by the state agency.
             637          Section 9. Section 57-11-16 is amended to read:
             638           57-11-16. Violations -- Duties of attorney general, county attorney, or district
             639      attorney.
             640          [(1) (a) This Subsection (1) applies to a person who willfully:]
             641          [(i) violates this chapter or a rule adopted under this chapter; or]
             642          [(ii) in an application for registration under this chapter or under the federal act, makes
             643      any untrue statement of a material fact or omits to state a material fact.]
             644          [(b) A person described in Subsection (1)(a) may be:]
             645          [(i) fined a civil penalty not to exceed the greater of:]


             646          [(A) $2,500 for each violation; or]
             647          [(B) double the amount of any gain or economic benefit derived from each violation;]
             648          [(ii) imprisoned for not more than two years; or]
             649          [(iii) both fined or imprisoned.]
             650          [(c) An indictment or information may not be returned or a complaint filed under this
             651      chapter more than five years after the alleged violation.]
             652          (1) (a) A person who violates this chapter is guilty of a class B misdemeanor, except as
             653      provided in Subsection (1)(b).
             654          (b) A person who knowingly makes an untrue statement or knowingly omits a material
             655      fact in an application for registration under this chapter or under the federal act is guilty of a
             656      class A misdemeanor.
             657          (2) (a) The attorney general shall advise the division and the division's staff in matters
             658      requiring legal counsel or services in the exercise of the division's power or performance of the
             659      division's duties.
             660          (b) In the prosecution or defense of an action under this section, the attorney general,
             661      the county attorney, or the district attorney of the appropriate county shall perform [all] the
             662      necessary legal services without compensation other than their regular salaries.
             663          Section 10. Section 59-1-404 is amended to read:
             664           59-1-404. Definitions -- Confidentiality of commercial information obtained from
             665      a property taxpayer or derived from the commercial information -- Rulemaking
             666      authority -- Exceptions -- Written explanation -- Signature requirements -- Retention of
             667      signed explanation by employer -- Penalty.
             668          (1) As used in this section:
             669          (a) "Appraiser" means an individual who holds an appraiser's certificate or license
             670      issued by the Division of Real Estate under Title 61, Chapter [2b] 2g, Real Estate Appraiser
             671      Licensing and Certification Act and includes an individual associated with an appraiser who
             672      assists the appraiser in preparing an appraisal.
             673          (b) "Appraisal" [means an appraisal] is as defined in Section [ 61-2b-2 ] 61-2g-102 .


             674          (c) (i) "Commercial information" means:
             675          (A) information of a commercial nature obtained from a property taxpayer regarding
             676      the property taxpayer's property; or
             677          (B) information derived from the information described in this Subsection (1)(c)(i).
             678          (ii) (A) "Commercial information" does not include information regarding a property
             679      taxpayer's property if the information is intended for public use.
             680          (B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             681      purposes of Subsection (1)(c)(ii)(A), the commission may by rule prescribe the circumstances
             682      under which information is intended for public use.
             683          (d) "Consultation service" [means a consultation service] is as defined in Section
             684      [ 61-2b-2 ] 61-2g-102 .
             685          (e) "Locally assessed property" means property that is assessed by a county assessor in
             686      accordance with Chapter 2, Part 3, County Assessment.
             687          (f) "Property taxpayer" means a person that:
             688          (i) is a property owner; or
             689          (ii) has in effect a contract with a property owner to:
             690          (A) make filings on behalf of the property owner;
             691          (B) process appeals on behalf of the property owner; or
             692          (C) pay a tax under Chapter 2, Property Tax Act, on the property owner's property.
             693          (g) "Property taxpayer's property" means property with respect to which a property
             694      taxpayer:
             695          (i) owns the property;
             696          (ii) makes filings relating to the property;
             697          (iii) processes appeals relating to the property; or
             698          (iv) pays a tax under Chapter 2, Property Tax Act, on the property.
             699          (h) "Protected commercial information" means commercial information that:
             700          (i) identifies a specific property taxpayer; or
             701          (ii) would reasonably lead to the identity of a specific property taxpayer.


             702          (2) An individual listed under Subsection 59-1-403 (1)(a) may not disclose commercial
             703      information:
             704          (a) obtained in the course of performing any duty that the individual listed under
             705      Subsection 59-1-403 (1)(a) performs under Chapter 2, Property Tax Act; or
             706          (b) relating to an action or proceeding:
             707          (i) with respect to a tax imposed on property in accordance with Chapter 2, Property
             708      Tax Act; and
             709          (ii) that is filed in accordance with:
             710          (A) this chapter;
             711          (B) Chapter 2, Property Tax Act; or
             712          (C) this chapter and Chapter 2, Property Tax Act.
             713          (3) (a) Notwithstanding Subsection (2) and subject to Subsection (3)(b), an individual
             714      listed under Subsection 59-1-403 (1)(a) may disclose the following information:
             715          (i) the assessed value of property;
             716          (ii) the tax rate imposed on property;
             717          (iii) a legal description of property;
             718          (iv) the physical description or characteristics of property, including a street address or
             719      parcel number for the property;
             720          (v) the square footage or acreage of property;
             721          (vi) the square footage of improvements on property;
             722          (vii) the name of a property taxpayer;
             723          (viii) the mailing address of a property taxpayer;
             724          (ix) the amount of a property tax:
             725          (A) assessed on property;
             726          (B) due on property;
             727          (C) collected on property;
             728          (D) abated on property; or
             729          (E) deferred on property;


             730          (x) the amount of the following relating to property taxes due on property:
             731          (A) interest;
             732          (B) costs; or
             733          (C) other charges;
             734          (xi) the tax status of property, including:
             735          (A) an exemption;
             736          (B) a property classification;
             737          (C) a bankruptcy filing; or
             738          (D) whether the property is the subject of an action or proceeding under this title;
             739          (xii) information relating to a tax sale of property; or
             740          (xiii) information relating to single-family residential property.
             741          (b) (i) Subject to Subsection (3)(b)(ii), a person may receive the information described
             742      in Subsection (3)(a) in written format.
             743          (ii) The following may charge a reasonable fee to cover the actual cost of providing the
             744      information described in Subsection (3)(a) in written format:
             745          (A) the commission;
             746          (B) a county;
             747          (C) a city; or
             748          (D) a town.
             749          (4) (a) Notwithstanding Subsection (2) and except as provided in Subsection (4)(c), an
             750      individual listed under Subsection 59-1-403 (1)(a) shall disclose commercial information:
             751          (i) in accordance with judicial order;
             752          (ii) on behalf of the commission in any action or proceeding:
             753          (A) under this title;
             754          (B) under another law under which a property taxpayer is required to disclose
             755      commercial information; or
             756          (C) to which the commission is a party;
             757          (iii) on behalf of any party to any action or proceeding under this title if the commercial


             758      information is directly involved in the action or proceeding; or
             759          (iv) if the requirements of Subsection (4)(b) are met, that is:
             760          (A) relevant to an action or proceeding:
             761          (I) filed in accordance with this title; and
             762          (II) involving property; or
             763          (B) in preparation for an action or proceeding involving property.
             764          (b) Commercial information shall be disclosed in accordance with Subsection
             765      (4)(a)(iv):
             766          (i) if the commercial information is obtained from:
             767          (A) a real estate agent if the real estate agent is not a property taxpayer of the property
             768      that is the subject of the action or proceeding;
             769          (B) an appraiser if the appraiser:
             770          (I) is not a property taxpayer of the property that is the subject of the action or
             771      proceeding; and
             772          (II) did not receive the commercial information pursuant to Subsection (8);
             773          (C) a property manager if the property manager is not a property taxpayer of the
             774      property that is the subject of the action or proceeding; or
             775          (D) a property taxpayer other than a property taxpayer of the property that is the subject
             776      of the action or proceeding;
             777          (ii) regardless of whether the commercial information is disclosed in more than one
             778      action or proceeding; and
             779          (iii) (A) if a county board of equalization conducts the action or proceeding, the county
             780      board of equalization takes action to provide that any commercial information disclosed during
             781      the action or proceeding may not be disclosed by any person conducting or participating in the
             782      action or proceeding except as specifically allowed by this section;
             783          (B) if the commission conducts the action or proceeding, the commission enters a
             784      protective order or, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             785      Act, makes rules specifying that any commercial information disclosed during the action or


             786      proceeding may not be disclosed by any person conducting or participating in the action or
             787      proceeding except as specifically allowed by this section; or
             788          (C) if a court of competent jurisdiction conducts the action or proceeding, the court
             789      enters a protective order specifying that any commercial information disclosed during the
             790      action or proceeding may not be disclosed by any person conducting or participating in the
             791      action or proceeding except as specifically allowed by this section.
             792          (c) Notwithstanding Subsection (4)(a), a court may require the production of, and may
             793      admit in evidence, commercial information that is specifically pertinent to the action or
             794      proceeding.
             795          (5) Notwithstanding Subsection (2), this section does not prohibit:
             796          (a) the following from receiving a copy of any commercial information relating to the
             797      basis for assessing a tax that is charged to a property taxpayer:
             798          (i) the property taxpayer;
             799          (ii) a duly authorized representative of the property taxpayer;
             800          (iii) a person that has in effect a contract with the property taxpayer to:
             801          (A) make filings on behalf of the property taxpayer;
             802          (B) process appeals on behalf of the property taxpayer; or
             803          (C) pay a tax under Chapter 2, Property Tax Act, on the property taxpayer's property;
             804          (iv) a property taxpayer that purchases property from another property taxpayer; or
             805          (v) a person that the property taxpayer designates in writing as being authorized to
             806      receive the commercial information;
             807          (b) the publication of statistics as long as the statistics are classified to prevent the
             808      identification of a particular property taxpayer's commercial information; or
             809          (c) the inspection by the attorney general or other legal representative of the state or a
             810      legal representative of a political subdivision of the state of the commercial information of a
             811      property taxpayer:
             812          (i) that brings action to set aside or review a tax or property valuation based on the
             813      commercial information;


             814          (ii) against which an action or proceeding is contemplated or has been instituted under
             815      this title; or
             816          (iii) against which the state or a political subdivision of the state has an unsatisfied
             817      money judgment.
             818          (6) Notwithstanding Subsection (2), in accordance with Title 63G, Chapter 3, Utah
             819      Administrative Rulemaking Act, the commission may by rule establish standards authorizing
             820      an individual listed under Subsection 59-1-403 (1)(a) to disclose commercial information:
             821          (a) (i) in a published decision; or
             822          (ii) in carrying out official duties; and
             823          (b) if that individual listed under Subsection 59-1-403 (1)(a) consults with the property
             824      taxpayer that provided the commercial information.
             825          (7) Notwithstanding Subsection (2):
             826          (a) an individual listed under Subsection 59-1-403 (1)(a) may share commercial
             827      information with the following:
             828          (i) another individual listed in Subsection 59-1-403 (1)(a)(i) or (ii); or
             829          (ii) a representative, agent, clerk, or other officer or employee of a county as required
             830      to fulfill an obligation created by Chapter 2, Property Tax Act;
             831          (b) an individual listed under Subsection 59-1-403 (1)(a) may perform the following to
             832      fulfill an obligation created by Chapter 2, Property Tax Act:
             833          (i) publish notice;
             834          (ii) provide notice; or
             835          (iii) file a lien; or
             836          (c) the commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
             837      Administrative Rulemaking Act, share commercial information gathered from returns and other
             838      written statements with the federal government, any other state, any of the political
             839      subdivisions of another state, or any political subdivision of this state, if these political
             840      subdivisions or the federal government grant substantially similar privileges to this state.
             841          (8) Notwithstanding Subsection (2):


             842          (a) subject to the limitations in this section, an individual described in Subsection
             843      59-1-403 (1)(a) may share the following commercial information with an appraiser:
             844          (i) the sales price of locally assessed property and the related financing terms;
             845          (ii) capitalization rates and related rates and ratios related to the valuation of locally
             846      assessed property; and
             847          (iii) income and expense information related to the valuation of locally assessed
             848      property; and
             849          (b) except as provided in Subsection (4), an appraiser who receives commercial
             850      information:
             851          (i) may disclose the commercial information:
             852          (A) to an individual described in Subsection 59-1-403 (1)(a);
             853          (B) to an appraiser;
             854          (C) in an appraisal if protected commercial information is removed to protect its
             855      confidential nature; or
             856          (D) in performing a consultation service if protected commercial information is not
             857      disclosed; and
             858          (ii) may not use the commercial information:
             859          (A) for a purpose other than to prepare an appraisal or perform a consultation service;
             860      or
             861          (B) for a purpose intended to be, or which could reasonably be foreseen to be,
             862      anti-competitive to a property taxpayer.
             863          (9) (a) The commission shall:
             864          (i) prepare a written explanation of this section; and
             865          (ii) make the written explanation described in Subsection (9)(a)(i) available to the
             866      public.
             867          (b) An employer of a person described in Subsection 59-1-403 (1)(a) shall:
             868          (i) provide the written explanation described in Subsection (9)(a)(i) to each person
             869      described in Subsection 59-1-403 (1)(a) who is reasonably likely to receive commercial


             870      information;
             871          (ii) require each person who receives a written explanation in accordance with
             872      Subsection (9)(b)(i) to:
             873          (A) read the written explanation; and
             874          (B) sign the written explanation; and
             875          (iii) retain each written explanation that is signed in accordance with Subsection
             876      (9)(b)(ii) for a time period:
             877          (A) beginning on the day on which a person signs the written explanation in
             878      accordance with Subsection (9)(b)(ii); and
             879          (B) ending six years after the day on which the employment of the person described in
             880      Subsection (9)(b)(iii)(A) by the employer terminates.
             881          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             882      commission shall by rule define "employer."
             883          (10) (a) An individual described in Subsection (1)(a) or 59-1-403 (1)(a), or an
             884      individual that violates a protective order or similar limitation entered pursuant to Subsection
             885      (4)(b)(iii), is guilty of a class A misdemeanor if that person:
             886          (i) intentionally discloses commercial information in violation of this section; and
             887          (ii) knows that the disclosure described in Subsection (10)(a)(i) is prohibited by this
             888      section.
             889          (b) If the individual described in Subsection (10)(a) is an officer or employee of the
             890      state or a county and is convicted of violating this section, the individual shall be dismissed
             891      from office and be disqualified from holding public office in this state for a period of five years
             892      thereafter.
             893          (c) If the individual described in Subsection (10)(a) is an appraiser, the appraiser shall
             894      forfeit any certification or license received under Title 61, [Section 2b] Chapter 2g, Real Estate
             895      Appraiser Licensing and Certification Act, for a period of five years.
             896          (d) If the individual described in Subsection (10)(a) is an individual associated with an
             897      appraiser who assists the appraiser in preparing appraisals, the individual shall be prohibited


             898      from becoming licensed or certified under Title 61, [Section 2b] Chapter 2g, Real Estate
             899      Appraiser Licensing and Certification Act, for a period of five years.
             900          Section 11. Section 59-2-701 is amended to read:
             901           59-2-701. Appraisal by certified or licensed appraisers only -- Certification of
             902      elected county assessors.
             903          (1) Any person performing an appraisal for purposes of establishing fair market value
             904      of real estate or real property for the assessment roll shall be the holder of an appraiser's
             905      certificate or license issued by the Division of Real Estate under Title 61, Chapter [2b] 2g, Real
             906      Estate Appraiser Licensing and Certification Act, except uncertified or unlicensed appraiser
             907      trainees may, for up to 36 months after the date of hire or appointment as an appraiser trainee,
             908      appraise property under the direction of a holder of an appraiser's certificate or license issued
             909      by the division.
             910          (2) The limitations on appraisal authority under Subsections [ 61-2b-10 ] 61-2g-311 (1)
             911      and (2) and Section [ 61-2b-13 ] 61-2g-312 do not apply to a person performing an appraisal for
             912      purposes of establishing fair market value for the assessment roll.
             913          (3) The commission may prescribe additional requirements for any person performing
             914      an appraisal for purposes of establishing fair market value for the assessment roll.
             915          (4) The commission may, by rule, establish qualifications for personal property
             916      appraisers exempt from licensure under Title 61, Chapter [2b] 2g, Real Estate Appraiser
             917      Licensing and Certification Act.
             918          (5) It is the duty of a county assessor, as established in Section 17-17-1 , to ensure that
             919      the assessor's office is in compliance with this section and any additional rules or requirements
             920      for property appraisers established by the commission.
             921          Section 12. Section 61-2-201 is amended to read:
             922           61-2-201. Division of Real Estate created -- Director appointed -- Personnel.
             923          (1) There is created within the department a Division of Real Estate. The division is
             924      responsible for the administration and enforcement of:
             925          (a) this chapter;


             926          (b) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act;
             927          (c) Title 57, Chapter 19, Timeshare and Camp Resort Act;
             928          (d) Title 57, Chapter 23, Real Estate Cooperative Marketing Act;
             929          [(e) Chapter 2b, Real Estate Appraiser Licensing and Certification Act;]
             930          [(f)] (e) Chapter 2c, Utah Residential Mortgage Practices and Licensing Act;
             931          [(g)] (f) Chapter 2e, Appraisal Management Company Registration and Regulation
             932      Act; [and]
             933          [(h)] (g) Chapter 2f, Real Estate Licensing and Practices Act[.]; and
             934          (h) Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
             935          (2) The division is under the direction and control of a director appointed by the
             936      executive director of the department with the approval of the governor. The director holds the
             937      office of director at the pleasure of the governor.
             938          (3) The director, with the approval of the executive director, may employ personnel
             939      necessary to discharge the duties of the division at salaries to be fixed by the director according
             940      to standards established by the Department of Administrative Services.
             941          Section 13. Section 61-2c-102 is amended to read:
             942           61-2c-102. Definitions.
             943          (1) As used in this chapter:
             944          (a) "Affiliation" means that a mortgage loan originator is associated with a principal
             945      lending manager in accordance with Section 61-2c-209 .
             946          (b) "Applicant" means a person applying for a license under this chapter.
             947          (c) "Approved examination provider" means a person approved by the nationwide
             948      database as an approved test provider.
             949          (d) "Associate lending manager" means an individual who:
             950          (i) qualifies under this chapter as a principal lending manager; and
             951          (ii) works by or on behalf of another principal lending manager in transacting the
             952      business of residential mortgage loans.
             953          (e) "Branch office" means a licensed entity's office:


             954          (i) for the transaction of the business of residential mortgage loans regulated under this
             955      chapter;
             956          (ii) other than the main office of the licensed entity; and
             957          (iii) that operates under:
             958          (A) the same business name as the licensed entity[.]; or
             959          (B) another trade name that is registered with the division under the entity license.
             960          (f) "Business day" means a day other than:
             961          (i) a Saturday;
             962          (ii) a Sunday; or
             963          (iii) a federal or state holiday.
             964          (g) (i) "Business of residential mortgage loans" means for compensation or in the
             965      expectation of compensation to:
             966          (A) engage in an act that makes an individual a mortgage loan originator;
             967          (B) make or originate a residential mortgage loan;
             968          (C) directly or indirectly solicit a residential mortgage loan for another;
             969          (D) unless excluded under Subsection (1)(g)(ii), render services related to the
             970      origination of a residential mortgage loan including:
             971          (I) preparing a loan package;
             972          (II) communicating with the borrower [and] or lender; or
             973          (III) advising on a loan term; or
             974          (E) engage in loan modification assistance.
             975          (ii) "Business of residential mortgage loans" does not include:
             976          (A) if working as an employee under the direction of and subject to the supervision and
             977      instruction of a person licensed under this chapter, the performance of a clerical or support duty
             978      such as:
             979          (I) the receipt, collection, or distribution of information common for the processing or
             980      underwriting of a loan in the mortgage industry other than taking an application;
             981          (II) communicating with a consumer to obtain information necessary for the processing


             982      or underwriting of a residential mortgage loan;
             983          (III) word processing;
             984          (IV) sending correspondence; or
             985          (V) assembling files;
             986          (B) ownership of an entity that engages in the business of residential mortgage loans if
             987      the owner does not personally perform the acts listed in Subsection (1)(g)(i); or
             988          (C) except if an individual will engage in an activity as a mortgage loan originator,
             989      acting in one or more of the following capacities:
             990          (I) a loan wholesaler;
             991          (II) an account executive for a loan wholesaler;
             992          (III) a loan underwriter;
             993          (IV) a loan closer; or
             994          (V) funding a loan; or
             995          (D) if employed by a person who owns or services an [exiting] existing residential
             996      mortgage loan[, as defined in Section 70D-2-102 ], the direct negotiation with the borrower for
             997      the purpose of loan modification.
             998          (h) "Certified education provider" means a person who is certified under Section
             999      61-2c-204.1 to provide one or more of the following:
             1000          (i) Utah-specific prelicensing education; or
             1001          (ii) Utah-specific continuing education.
             1002          (i) "Closed-end" means a loan:
             1003          (i) with a fixed amount borrowed; and
             1004          (ii) that does not permit additional borrowing secured by the same collateral.
             1005          (j) "Commission" means the Residential Mortgage Regulatory Commission created in
             1006      Section 61-2c-104 .
             1007          (k) "Compensation" means anything of economic value that is paid, loaned, granted,
             1008      given, donated, or transferred to an individual or entity for or in consideration of:
             1009          (i) services;


             1010          (ii) personal or real property; or
             1011          (iii) another thing of value.
             1012          (l) "Concurrence" means that entities given a concurring [rule] role must jointly agree
             1013      for the action to be taken.
             1014          (m) "Continuing education" means education taken by an individual licensed under this
             1015      chapter in order to meet the education requirements imposed by Sections 61-2c-204.1 and
             1016      61-2c-205 to renew a license under this chapter.
             1017          (n) "Control," as used in Subsection 61-2c-105 (2)(f), means the power to directly or
             1018      indirectly:
             1019          (i) direct or exercise a controlling interest over:
             1020          (A) the management or policies of an entity; or
             1021          (B) the election of a majority of the directors, officers, managers, or managing partners
             1022      of an entity;
             1023          (ii) vote 20% or more of a class of voting securities of an entity by an individual; or
             1024          (iii) vote more than 5% of a class of voting securities of an entity by another entity.
             1025          (o) (i) "Control person" means an individual identified by an entity registered with the
             1026      nationwide database as being [the] an individual [primarily responsible for] directing the
             1027      management or policies of the entity.
             1028          (ii) "Control person" may include one of the following who is identified as provided in
             1029      Subsection (1)(o)(i):
             1030          (A) a manager;
             1031          (B) a managing partner;
             1032          (C) a director;
             1033          (D) an executive officer; or
             1034          (E) an individual who performs a function similar to an individual listed in this
             1035      Subsection (1)(o)(ii).
             1036          (p) "Depository institution" is as defined in Section 7-1-103 .
             1037          (q) "Director" means the director of the division.


             1038          (r) "Division" means the Division of Real Estate.
             1039          (s) "Dwelling" means a residential structure attached to real property that contains one
             1040      to four units including any of the following if used as a residence:
             1041          (i) a condominium unit;
             1042          (ii) a cooperative unit;
             1043          (iii) a manufactured home; or
             1044          (iv) a house.
             1045          (t) "Entity" means:
             1046          (i) a corporation;
             1047          (ii) a limited liability company;
             1048          (iii) a partnership;
             1049          (iv) a company;
             1050          (v) an association;
             1051          (vi) a joint venture;
             1052          (vii) a business trust;
             1053          (viii) a trust; or
             1054          (ix) another organization.
             1055          (u) "Executive director" means the executive director of the Department of Commerce.
             1056          (v) "Federal licensing requirements" means Secure and Fair Enforcement for Mortgage
             1057      Licensing, 12 U.S.C. Sec. 5101 et seq.
             1058          (w) "Foreclosure rescue" means, for compensation or with the expectation of receiving
             1059      valuable consideration, to:
             1060          (i) engage, or offer to engage, in an act that:
             1061          (A) the person represents will assist a borrower in preventing a foreclosure; and
             1062          (B) relates to a transaction involving the transfer of title to residential real property; or
             1063          (ii) as an employee or agent of another person:
             1064          (A) solicit, or offer that the other person will engage in an act described in Subsection
             1065      (1)(w)(i); or


             1066          (B) negotiate terms in relationship to an act described in Subsection (1)(w)(i).
             1067          (x) "Inactive status" means a dormant status into which an unexpired license is placed
             1068      when the holder of the license is not currently engaging in the business of residential mortgage
             1069      loans.
             1070          (y) "Licensee" means a person licensed with the division under this chapter.
             1071          (z) "Licensing examination" means the examination required by Section 61-2c-204.1 or
             1072      61-2c-206 for an individual to obtain a license under this chapter.
             1073          (aa) "Loan modification assistance" means, for compensation or with the expectation
             1074      of receiving valuable consideration, to:
             1075          (i) act, or offer to act, on behalf of a person to:
             1076          (A) obtain a loan term of a residential mortgage loan that is different from an existing
             1077      loan term including:
             1078          (I) an increase or decrease in an interest rate;
             1079          (II) a change to the type of interest rate;
             1080          (III) an increase or decrease in the principal amount of the residential mortgage loan;
             1081          (IV) a change in the number of required period payments;
             1082          (V) an addition of collateral;
             1083          (VI) a change to, or addition of, a prepayment penalty;
             1084          (VII) an addition of a cosigner; or
             1085          (VIII) a change in persons obligated under the existing residential mortgage loan; or
             1086          (B) substitute a new residential mortgage loan for an existing residential mortgage
             1087      loan; or
             1088          (ii) as an employee or agent of another person:
             1089          (A) solicit, or offer that the other person will engage in an act described in Subsection
             1090      (1)(aa)(i); or
             1091          (B) negotiate terms in relationship to an act described in Subsection (1)(aa)(i).
             1092          (bb) (i) Except as provided in Subsection (1)(bb)(ii), "mortgage loan originator" means
             1093      an individual who for compensation or in expectation of compensation:


             1094          (A) (I) takes a residential mortgage loan application; or
             1095          (II) offers or negotiates terms of a residential mortgage loan for the purpose of:
             1096          (Aa) a purchase;
             1097          (Bb) a refinance;
             1098          (Cc) a loan modification assistance; or
             1099          (Dd) a foreclosure rescue; and
             1100          (B) is licensed as a mortgage loan originator in accordance with this chapter.
             1101          (ii) "Mortgage loan originator" does not include a person who:
             1102          (A) is described in Subsection (1)(bb)(i), but who performs exclusively administrative
             1103      or clerical tasks as described in Subsection (1)(g)(ii)(A);
             1104          (B) (I) is licensed under Chapter 2f, Real Estate Licensing and Practices Act;
             1105          (II) performs only real estate brokerage activities; and
             1106          (III) receives no compensation from:
             1107          (Aa) a lender;
             1108          (Bb) a principal lending manager; or
             1109          (Cc) an agent of a lender or principal lending manager; or
             1110          (C) is solely involved in extension of credit relating to a timeshare plan, as defined in
             1111      11 U.S.C. Sec. 101(53D).
             1112          (cc) "Nationwide database" means the Nationwide Mortgage Licensing System and
             1113      Registry, authorized under federal licensing requirements.
             1114          (dd) "Nontraditional mortgage product" means a mortgage product other than a 30-year
             1115      fixed rate mortgage.
             1116          (ee) "Person" means an individual or entity.
             1117          (ff) "Prelicensing education" means education taken by an individual seeking to be
             1118      licensed under this chapter in order to meet the education requirements imposed by Section
             1119      61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
             1120          (gg) (i) "Principal lending manager" means an individual licensed as a principal
             1121      lending manager under Section 61-2c-206 to transact the business of residential mortgage


             1122      loans.
             1123          (ii) An individual who is a principal lending manager may transact the business of
             1124      residential mortgage loans as a mortgage loan originator.
             1125          (hh) "Record" means information that is:
             1126          (i) prepared, owned, received, or retained by a person; and
             1127          (ii) (A) inscribed on a tangible medium; or
             1128          (B) (I) stored in an electronic or other medium; and
             1129          (II) in a perceivable and reproducible form.
             1130          (ii) "Residential mortgage loan" means an extension of credit, if:
             1131          (i) the loan or extension of credit is secured by a:
             1132          (A) mortgage;
             1133          (B) deed of trust; or
             1134          (C) consensual security interest;
             1135          (ii) the mortgage, deed of trust, or consensual security interest described in Subsection
             1136      (1)(ii)(i):
             1137          (A) is on a dwelling located in the state; and
             1138          (B) is created with the consent of the owner of the residential real property; and
             1139          (iii) solely for the purposes of defining "mortgage loan originator," the extension of
             1140      credit is primarily for personal, family, or household use.
             1141          (jj) "Sponsorship" means an association in accordance with Section 61-2c-209 between
             1142      an individual licensed under this chapter and an entity licensed under this chapter.
             1143          (kk) "State" means:
             1144          (i) a state, territory, or possession of the United States;
             1145          (ii) the District of Columbia; or
             1146          (iii) the Commonwealth of Puerto Rico.
             1147          (ll) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
             1148          (mm) "Utah-specific" means an educational or examination requirement under this
             1149      chapter that relates specifically to Utah.


             1150          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             1151      meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
             1152      Utah Administrative Rulemaking Act.
             1153          (b) If a term not defined in this section is not defined by rule, the term shall have the
             1154      meaning commonly accepted in the business community.
             1155          Section 14. Section 61-2c-103 is amended to read:
             1156           61-2c-103. Powers and duties of the division.
             1157          (1) The division shall administer this chapter.
             1158          (2) In addition to a power or duty expressly provided in this chapter, the division may:
             1159          (a) receive and act on a complaint including:
             1160          (i) taking action designed to obtain voluntary compliance with this chapter; or
             1161          (ii) commencing an administrative or judicial proceeding on the division's own
             1162      initiative;
             1163          (b) establish one or more programs for the education of consumers with respect to
             1164      residential mortgage loans;
             1165          (c) (i) make one or more studies appropriate to effectuate the purposes and policies of
             1166      this chapter; and
             1167          (ii) make the results of the studies described in Subsection (2)(c)(i) available to the
             1168      public;
             1169          (d) visit and investigate a person licensed under this chapter, regardless of whether the
             1170      person is located in Utah; [and]
             1171          (e) employ one or more necessary hearing examiners, investigators, clerks, and other
             1172      employees and agents[.]; and
             1173          (f) establish fees under Section 63J-1-504 for:
             1174          (i) processing an application for licensing or certification; and
             1175          (ii) any other function required or permitted by this chapter.
             1176          (3) The division shall make rules for the administration of this chapter in accordance
             1177      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, including:


             1178          (a) licensure procedures for:
             1179          (i) a person required by this chapter to obtain a license with the division; and
             1180          (ii) the establishment of a branch office by an entity;
             1181          (b) proper handling of money received by a licensee;
             1182          (c) record-keeping requirements by a licensee, including proper disposal of a record;
             1183          (d) certification procedures for certifying an education provider; and
             1184          (e) standards of conduct for a licensee or certified education provider.
             1185          (4) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
             1186      Administrative Rulemaking Act, require as a condition of maintaining a license or certification
             1187      under this chapter that a person comply with a requirement of the nationwide database if:
             1188          (a) required for uniformity amongst states; and
             1189          (b) not inconsistent with this chapter.
             1190          (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
             1191      Administrative Rulemaking Act, provide a process under which an individual may challenge
             1192      information contained in the nationwide database.
             1193          (6) The division shall annually:
             1194          (a) review the requirements related to the nationwide database imposed by federal
             1195      licensing requirements or the nationwide database on:
             1196          (i) the division;
             1197          (ii) a licensee under this chapter;
             1198          (iii) a certified education provider; or
             1199          (iv) an approved examination provider; and
             1200          (b) after the review required by Subsection (6)(a):
             1201          (i) report to the Business and Labor Interim Committee the impact of the requirements
             1202      on the implementation by the division of this chapter; and
             1203          (ii) recommend legislation, if any, to the Business and Labor Interim Committee
             1204      related to how the division should coordinate with the nationwide database.
             1205          (7) The division may enter into a relationship or contract with the nationwide database


             1206      or another entity designated by the nationwide database to do the following related to a licensee
             1207      or other person subject to this chapter:
             1208          (a) collect or maintain a record; and
             1209          (b) process a transaction fee or other fee.
             1210          (8) The division shall regularly report the following to the nationwide database:
             1211          (a) a violation of this chapter;
             1212          (b) disciplinary action under this chapter; and
             1213          (c) other information relevant to this chapter.
             1214          (9) If a person pays a fee or costs to the division with a negotiable instrument [and the
             1215      negotiable instrument] or any other method that is not honored for payment:
             1216          (a) the transaction for which the payment is submitted is voidable by the division;
             1217          (b) the division may reverse the transaction if payment of the applicable fee or costs is
             1218      not received in full; and
             1219          (c) the person's license, certification, or registration is automatically suspended:
             1220          (i) beginning the day on which the payment is due; and
             1221          (ii) ending the day on which payment is made in full.
             1222          Section 15. Section 61-2c-202 is amended to read:
             1223           61-2c-202. Licensure procedures.
             1224          (1) To apply for licensure under this chapter an applicant shall in a manner provided by
             1225      the division by rule:
             1226          (a) if the applicant is an entity, submit a licensure statement that:
             1227          (i) lists any name under which the entity will transact business in this state;
             1228          (ii) lists the address of the principal business location of the entity;
             1229          (iii) identifies the principal lending manager of the entity;
             1230          (iv) contains the signature of the principal lending manager;
             1231          (v) identifies the one or more control persons for the entity;
             1232          (vi) identifies the jurisdictions in which the entity is registered, licensed, or otherwise
             1233      regulated in the business of residential mortgage loans;


             1234          (vii) discloses any adverse administrative action taken by an administrative agency
             1235      against:
             1236          (A) the entity; or
             1237          (B) any control person for the entity;
             1238          (viii) discloses any history of criminal proceedings involving any control person for the
             1239      entity; and
             1240          (ix) includes any information required by the division by rule;
             1241          (b) if the applicant is an individual:
             1242          (i) submit a licensure statement that identifies the entity with which the applicant is
             1243      sponsored;
             1244          (ii) authorize a criminal background check through the nationwide database accessing:
             1245          (A) the Utah Bureau of Criminal Identification, if the nationwide database is able to
             1246      obtain information from the Utah Bureau of Criminal Identification; and
             1247          (B) the Federal Bureau of Investigation;
             1248          (iii) submit evidence using a method approved by the division by rule of having
             1249      successfully completed approved prelicensing education in accordance with Section
             1250      61-2c-204.1 ;
             1251          (iv) submit evidence using a method approved by the division by rule of having
             1252      successfully passed any required licensing examination in accordance with Section
             1253      61-2c-204.1 ; and
             1254          (v) submit evidence using a method approved by the division by rule of having
             1255      successfully registered in the nationwide database, including paying a fee required by the
             1256      nationwide database; and
             1257          (c) pay to the division:
             1258          (i) an application fee established by the division in accordance with Section 63J-1-504 ;
             1259      and
             1260          (ii) the reasonable expenses incurred by the division in processing the application for
             1261      licensure.


             1262          (2) (a) Upon receiving an application, the division, with the concurrence of the
             1263      commission, shall determine whether the applicant:
             1264          (i) meets the qualifications for licensure; and
             1265          (ii) complies with this section.
             1266          (b) If the division, with the concurrence of the commission, determines that an
             1267      applicant meets the qualifications for licensure and complies with this section, the division
             1268      shall issue the applicant a license.
             1269          (c) If the division, with the concurrence of the commission, determines that the
             1270      division requires more information to make a determination under Subsection (2)(a), the
             1271      division may:
             1272          (i) hold the application pending further information about an applicant's criminal
             1273      background or history related to adverse administrative action in any jurisdiction; or
             1274          (ii) issue a conditional license:
             1275          (A) pending the completion of a criminal background check; and
             1276          (B) subject to probation, suspension, or revocation if the criminal background check
             1277      reveals that the applicant did not truthfully or accurately disclose on the licensing application a
             1278      criminal history or other history related to adverse administrative action.
             1279          (3) (a) The commission may delegate to the division the authority to:
             1280          (i) review a class or category of application for an initial or renewed license;
             1281          (ii) determine whether an applicant meets the qualifications for licensure;
             1282          (iii) conduct a necessary hearing on an application; and
             1283          (iv) approve or deny a license application without concurrence by the commission.
             1284          (b) If the commission delegates to the division the authority to approve or deny an
             1285      application without concurrence by the commission and the division denies an application for
             1286      licensure, the applicant who is denied licensure may petition the commission for a de novo
             1287      review of the [denial] application.
             1288          (c) An applicant who is denied licensure under Subsection (3)(b) may seek agency
             1289      review by the executive director only after the commission reviews the division's denial of the


             1290      applicant's application.
             1291          (d) Subject to Subsection (3)(c) and in accordance with Title 63G, Chapter 4,
             1292      Administrative Procedures Act, an applicant who is denied licensure under this chapter may
             1293      submit a request for agency review to the executive director within 30 days following the day
             1294      on which the commission order denying the licensure is issued.
             1295          Section 16. Section 61-2c-203 is amended to read:
             1296           61-2c-203. General qualifications for licensure.
             1297          (1) To qualify for licensure under this chapter, a person shall demonstrate through
             1298      procedures established by rule made by the division in accordance with Title 63G, Chapter 3,
             1299      Utah Administrative Rulemaking Act:
             1300          (a) financial responsibility;
             1301          (b) good moral character, honesty, integrity, and truthfulness; and
             1302          (c) the competence to transact the business of residential mortgage loans, including
             1303      general fitness such as to command the confidence of the community and to warrant a
             1304      determination that the person will operate honestly, fairly, and efficiently within the purposes
             1305      of this chapter.
             1306          [(2) If an applicant is an individual, the applicant may not have:]
             1307          [(a) been convicted of, pled guilty to, pled no contest to, pled guilty in a similar manner
             1308      to, or resolved by diversion or its equivalent:]
             1309          [(i) a felony involving an act of fraud, dishonesty, a breach of trust, or money
             1310      laundering; or]
             1311          [(ii) a felony in the seven years preceding the day on which an application is submitted
             1312      to the division;]
             1313          [(b) in the five years preceding the day on which an application is submitted to the
             1314      division, been convicted of, pled guilty to, pled no contest to, pled guilty in a similar manner
             1315      to, or resolved by diversion its equivalent:]
             1316          [(i) a class B or class C misdemeanor involving moral turpitude; or]
             1317          [(ii) a crime in another jurisdiction that is the equivalent of a class B or class C


             1318      misdemeanor involving moral turpitude;]
             1319          [(c) had a license as a mortgage loan originator revoked by a governmental jurisdiction
             1320      at any time;]
             1321          [(d) had a license or registration suspended, surrendered, canceled, or denied in the five
             1322      years preceding the date the individual applies for licensure if:]
             1323          [(i) the registration or license is issued by this state or another jurisdiction; and]
             1324          [(ii) the suspension, surrender, cancellation, or denial is based on misconduct in a
             1325      professional capacity that relates to moral character, honesty, integrity, truthfulness, or the
             1326      competency to transact the business of residential mortgage loans;]
             1327          [(e) been the subject of a bar by the Securities and Exchange Commission, the New
             1328      York Stock Exchange, or the National Association of Securities Dealers within the five years
             1329      preceding the date the individual applies for registration; or]
             1330          [(f) had a permanent injunction entered against the individual:]
             1331          [(i) by a court or administrative agency; and]
             1332          [(ii) on the basis of:]
             1333          [(A) conduct or a practice involving the business of residential mortgage loans; or]
             1334          [(B) conduct involving fraud, misrepresentation, or deceit.]
             1335          [(3)] (2) If an applicant is an entity, the applicant may not have a control person who
             1336      fails to meet the requirements of Subsection [(2)] (1) for an individual applicant.
             1337          Section 17. Section 61-2c-205 is amended to read:
             1338           61-2c-205. Term of licensure -- Renewal -- Reporting of changes.
             1339          (1) (a) A license issued under this chapter expires as follows:
             1340          (i) for the calendar year the license is issued:
             1341          (A) if the license is issued on or before October 31, the license expires on December 31
             1342      of the same calendar year; and
             1343          (B) if the license is issued on or after November 1, the license expires on December 31
             1344      of the following calendar year; and
             1345          (ii) after the December 31 on which a license expires under Subsection (1)(a)(i), a


             1346      license expires annually on December 31.
             1347          (b) Notwithstanding Subsection (1)(a), the time period of a license may be extended or
             1348      shortened by as much as one year to maintain or change a renewal cycle established by rule by
             1349      the division.
             1350          (2) To renew a license, no later than the date the license expires, a licensee shall in a
             1351      manner provided by the division by rule:
             1352          (a) file a renewal statement;
             1353          (b) furnish the information required by Subsection 61-2c-202 (1);
             1354          (c) renew the licensee's registration with the nationwide database, including the
             1355      payment of a fee required by the nationwide database;
             1356          (d) pay a fee to the division established by the division in accordance with Section
             1357      63J-1-504 ; and
             1358          (e) if the licensee is an individual and the individual's license is in active status at the
             1359      time of application for renewal, submit proof of having completed during the year before
             1360      application the continuing education required under Section 61-2c-204.1 .
             1361          (3) (a) A licensee under this chapter shall notify the division in a manner provided by
             1362      the division by rule within 10 days of the date on which there is a change in:
             1363          (i) a name under which the licensee transacts the business of residential mortgage loans
             1364      in this state;
             1365          (ii) (A) if the licensee is an entity, the business location of the licensee; or
             1366          (B) if the licensee is an individual, the home and business addresses of the individual;
             1367          (iii) the principal lending manager of the entity;
             1368          (iv) the entity with which an individual licensee is licensed to conduct the business of
             1369      residential mortgage loans; or
             1370          (v) any other information that is defined as material by rule made by the division.
             1371          (b) Failure to notify the division of a change described in Subsection (3)(a) is separate
             1372      grounds for disciplinary action against a licensee.
             1373          (c) The division may charge a fee established in accordance with Section 63J-1-504 for


             1374      processing a change that a licensee is required to report to the division under Subsection (3)(a).
             1375          (4) (a) A licensee shall notify the division by sending the division a signed statement
             1376      within 10 business days of:
             1377          [(a)] (i) (A) a conviction of a [criminal offense] felony, class A misdemeanor, or class
             1378      B misdemeanor;
             1379          [(ii)] (B) the entry of a plea in abeyance to a [criminal offense] felony, class A
             1380      misdemeanor, or class B misdemeanor; or
             1381          [(iii)] (C) the potential resolution of a [criminal case] felony, class A misdemeanor, or
             1382      class B misdemeanor by[: (A)] a diversion agreement[;], or [(B)] any other agreement under
             1383      which a criminal charge is held in suspense for a period of time;
             1384          [(b)] (ii) filing a personal bankruptcy or bankruptcy of a business that transacts the
             1385      business of residential mortgage loans;
             1386          [(c)] (iii) the suspension, revocation, surrender, cancellation, or denial of a professional
             1387      license or professional registration of the licensee, whether the license or registration is issued
             1388      by this state or another jurisdiction; or
             1389          [(d)] (iv) the entry of a cease and desist order or a temporary or permanent injunction:
             1390          [(i)] (A) against the licensee by a court or licensing agency; and
             1391          [(ii)] (B) based on[: (A)] conduct or a practice involving the business of residential
             1392      mortgage loans[;], or [(B)] conduct involving fraud, misrepresentation, or deceit.
             1393          (b) The commission, with the concurrence of the division, shall enforce the reporting
             1394      requirement under this Subsection (4) pursuant to Section 61-2c-402 .
             1395          (5) (a) A license under this chapter expires if the licensee does not apply to renew the
             1396      license on or before the expiration date of the license.
             1397          (b) A licensee whose license has expired may apply to reinstate the expired license, in
             1398      a manner provided by the division by rule by:
             1399          (i) requesting reinstatement;
             1400          (ii) paying to the division a renewal fee and a late fee determined by the division under
             1401      Section 63J-1-504 ; and


             1402          (iii) reinstating the licensee's registration with the nationwide database, including the
             1403      payment of a fee required by the nationwide database.
             1404          Section 18. Section 61-2c-301 is amended to read:
             1405           61-2c-301. Prohibited conduct -- Violations of the chapter.
             1406          (1) A person transacting the business of residential mortgage loans in this state may
             1407      not:
             1408          (a) give or receive compensation or anything of value in exchange for a referral of
             1409      residential mortgage loan business;
             1410          (b) charge a fee in connection with a residential mortgage loan transaction:
             1411          (i) that is excessive; or
             1412          [(ii) if the person does not comply with Section 70D-2-305 ;]
             1413          (ii) without providing to the loan applicant a written statement signed by the loan
             1414      applicant:
             1415          (A) stating whether or not the fee or deposit is refundable; and
             1416          (B) describing the conditions, if any, under which all or a portion of the fee or deposit
             1417      will be refunded to the applicant;
             1418          (c) give or receive compensation or anything of value in exchange for a referral of
             1419      settlement or loan closing services related to a residential mortgage loan transaction;
             1420          (d) do any of the following to induce a lender to extend credit as part of a residential
             1421      mortgage loan transaction:
             1422          (i) make a false statement or representation;
             1423          (ii) cause false documents to be generated; or
             1424          (iii) knowingly permit false information to be submitted by any party;
             1425          (e) give or receive compensation or anything of value, or withhold or threaten to
             1426      withhold payment of an appraiser fee, to influence the independent judgment of an appraiser in
             1427      reaching a value conclusion in a residential mortgage loan transaction, except that it is not a
             1428      violation of this section for a licensee to withhold payment because of a bona fide dispute
             1429      regarding a failure of the appraiser to comply with the licensing law or the Uniform Standards


             1430      of Professional Appraisal Practice;
             1431          (f) violate or not comply with:
             1432          (i) this chapter;
             1433          (ii) an order of the commission or division; or
             1434          (iii) a rule made by the division;
             1435          (g) fail to respond within the required time period to:
             1436          (i) a notice or complaint of the division; or
             1437          (ii) a request for information from the division;
             1438          (h) make false representations to the division, including in a licensure statement;
             1439          (i) for a residential mortgage loan transaction beginning on or after January 1, 2004,
             1440      engage in the business of residential mortgage loans with respect to the transaction if the
             1441      person also acts in any of the following capacities with respect to the same residential mortgage
             1442      loan transaction:
             1443          (i) appraiser;
             1444          (ii) escrow agent;
             1445          (iii) real estate agent;
             1446          (iv) general contractor; or
             1447          (v) title insurance producer;
             1448          (j) order a title insurance report or hold a title insurance policy unless the person
             1449      provides to the title insurer a copy of a valid, current license under this chapter;
             1450          (k) engage in unprofessional conduct as defined by rule;
             1451          (l) engage in an act or omission in transacting the business of residential mortgage
             1452      loans that constitutes dishonesty, fraud, or misrepresentation;
             1453          (m) engage in false or misleading advertising;
             1454          (n) (i) fail to account for money received in connection with a residential mortgage
             1455      loan;
             1456          (ii) use money for a different purpose from the purpose for which the money is
             1457      received; or


             1458          (iii) except as provided in Subsection (4), retain money paid for services if the services
             1459      are not performed;
             1460          (o) fail, within 90 calendar days of a request from a borrower who has paid for an
             1461      appraisal, to give a copy of an appraisal ordered and used for a transaction to the borrower;
             1462          (p) engage in an act that is performed to:
             1463          (i) evade this chapter; or
             1464          (ii) assist another person to evade this chapter;
             1465          (q) recommend or encourage default, delinquency, or continuation of an existing
             1466      default or delinquency, by a mortgage applicant on an existing indebtedness before the closing
             1467      of a residential mortgage loan that will refinance all or part of the indebtedness;
             1468          (r) in the case of the principal lending manager of an entity or a branch office of an
             1469      entity, fail to exercise reasonable supervision over the activities of:
             1470          (i) unlicensed staff; and
             1471          (ii) a mortgage loan originator who is affiliated with the principal lending manager;
             1472          (s) pay or offer to pay an individual who does not hold a license under this chapter for
             1473      work that requires the individual to hold a license under this chapter;
             1474          (t) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             1475          (i) provide a title insurance product or service without the approval required by Section
             1476      31A-2-405 ; or
             1477          (ii) knowingly provide false or misleading information in the statement required by
             1478      Subsection 31A-2-405 (2);
             1479          (u) represent to the public that the person can or will perform any act of a mortgage
             1480      loan originator if that person is not licensed under this chapter because the person is exempt
             1481      under Subsection 61-2c-102 (1)(g)(ii)(A), including through:
             1482          (i) advertising;
             1483          (ii) a business card;
             1484          (iii) stationery;
             1485          (iv) a brochure;


             1486          (v) a sign;
             1487          (vi) a rate list; or
             1488          (vii) other promotional item; or
             1489          (v) (i) engage in an act of loan modification assistance without being licensed under
             1490      this chapter;
             1491          (ii) engage in an act of foreclosure rescue that requires licensure as a real estate agent
             1492      or real estate broker under Chapter 2, Division of Real Estate, without being licensed under
             1493      that chapter;
             1494          (iii) engage in an act of loan modification assistance without entering into a written
             1495      agreement specifying which one or more acts of loan modification assistance will be
             1496      completed;
             1497          [(iii)] (iv) request or require a person to pay a fee [if:] before obtaining:
             1498          [(A) the person is required to pay the fee before entering into a written agreement
             1499      specifying what one or more acts of loan modification assistance will be completed if the fee is
             1500      paid; or]
             1501          [(B) in a case when the residential mortgage loan that is the subject of the loan
             1502      modification assistance is foreclosed within one year of the day on which the person enters into
             1503      a written agreement, the person is required to forfeit the fee for any reason;]
             1504          (A) a written offer for a loan modification from the person's lender or servicer; and
             1505          (B) the person's written acceptance of the offer from the lender or servicer;
             1506          [(iv)] (v) induce a person seeking a loan modification to hire the licensee to engage in
             1507      an act of loan modification assistance by:
             1508          (A) suggesting to the person that the licensee has a special relationship with the
             1509      person's lender or loan servicer; or
             1510          (B) falsely representing or advertising that the licensee is acting on behalf of:
             1511          (I) a government agency;
             1512          (II) the person's lender or loan servicer; or
             1513          (III) a nonprofit or charitable institution;


             1514          [(v)] (vi) recommend or participate in a loan modification that requires a person to:
             1515          (A) transfer title to real property to the licensee or to a [third party] third-party with
             1516      whom the licensee has a business relationship or financial interest;
             1517          (B) make a mortgage payment to a person other than the person's loan servicer; or
             1518          (C) refrain from contacting the person's:
             1519          (I) lender;
             1520          (II) loan servicer;
             1521          (III) attorney;
             1522          (IV) credit counselor; or
             1523          (V) housing counselor; or
             1524          [(vi)] (vii) for an agreement for loan modification assistance entered into on or after
             1525      May 11, 2010, engage in an act of loan modification assistance without offering in writing to
             1526      the person entering into the agreement for loan modification assistance a right to cancel the
             1527      agreement within three business days after the day on which the person enters the agreement.
             1528          (2) Whether or not the crime is related to the business of residential mortgage loans, it
             1529      is a violation of this chapter for a licensee or a person who is a certified education provider to
             1530      do any of the following with respect to a criminal offense that involves moral turpitude:
             1531          (a) be convicted;
             1532          (b) plead guilty or nolo contendere;
             1533          (c) enter a plea in abeyance; or
             1534          (d) be subjected to a criminal disposition similar to the ones described in Subsections
             1535      (2)(a) through (c).
             1536          (3) A principal lending manager does not violate Subsection (1)(r) if:
             1537          (a) in contravention of the principal lending manager's written policies and
             1538      instructions, an affiliated licensee of the principal lending manager violates:
             1539          (i) this chapter; or
             1540          (ii) rules made by the division under this chapter;
             1541          (b) the principal lending manager established and followed reasonable procedures to


             1542      ensure that affiliated licensees receive adequate supervision;
             1543          (c) upon learning of a violation by an affiliated licensee, the principal lending manager
             1544      attempted to prevent or mitigate the damage;
             1545          (d) the principal lending manager did not participate in or ratify the violation by an
             1546      affiliated licensee; and
             1547          (e) the principal lending manager did not attempt to avoid learning of the violation.
             1548          (4) Notwithstanding Subsection (1)(n)(iii), a licensee may, upon compliance with
             1549      Section 70D-2-305 , charge a reasonable cancellation fee for work done originating a mortgage
             1550      if the mortgage is not closed.
             1551          Section 19. Section 61-2c-302 is amended to read:
             1552           61-2c-302. Record requirements.
             1553          (1) For the time period specified in Subsection (2), a licensee shall make or possess any
             1554      record required for that licensee by a rule made by the division.
             1555          (2) A licensee shall maintain and safeguard in its possession a record described in
             1556      Subsection (1) for four years from the last to occur of the following:
             1557          (a) the final entry on a residential mortgage loan is made by that licensee;
             1558          (b) if the residential mortgage loan is serviced by the licensee:
             1559          (i) the residential mortgage loan is paid in full; or
             1560          (ii) the licensee ceases to service the residential mortgage loan; or
             1561          (c) if the residential mortgage loan is not serviced by the licensee, the residential
             1562      mortgage loan is closed.
             1563          (3) A licensee shall:
             1564          (a) make available to the division for inspection and copying during normal business
             1565      hours all records required to be maintained under this chapter; and
             1566          (b) upon reasonable notice from the division to a licensee, produce all records
             1567      described in Subsection (3)(a) that are related to an investigation being conducted by the
             1568      division at the division office for inspection and copying by the division.
             1569          (4) A licensee who is an entity shall maintain and produce for inspection by the


             1570      division a current list of all individuals whose licenses are sponsored by the entity.
             1571          (5) (a) A licensee who engages in an activity as a mortgage loan originator shall
             1572      maintain a report of condition submitted to the nationwide database as required by 12 U.S.C.
             1573      Sec. 5104(e) for at least four years from the day on which the licensee submits the report of
             1574      condition to the nationwide database.
             1575          (b) Upon request by the division, a mortgage loan originator shall produce a report of
             1576      condition for inspection by the division.
             1577          Section 20. Section 61-2c-402 is amended to read:
             1578           61-2c-402. Disciplinary action.
             1579          (1) Subject to the requirements of Section 61-2c-402.1 , the commission, with the
             1580      concurrence of the division, may impose a sanction described in Subsection (2) against a
             1581      person if the person:
             1582          (a) (i) is a licensee or person required to be licensed under this chapter; and
             1583          (ii) violates this chapter; or
             1584          (b) (i) is a certified education provider or person required to be certified to provide
             1585      prelicensing or continuing education under this chapter; and
             1586          (ii) violates this chapter.
             1587          (2) The commission, with the concurrence of the director, may against a person
             1588      described in Subsection (1):
             1589          (a) impose an educational requirement;
             1590          (b) impose a civil penalty against the individual or entity in an amount not to exceed
             1591      the greater of:
             1592          (i) $5,000 for each violation; or
             1593          (ii) the amount equal to any gain or economic benefit derived from each violation;
             1594          (c) deny an application for an original license;
             1595          (d) do any of the following to a license under this chapter:
             1596          (i) suspend;
             1597          (ii) revoke;


             1598          (iii) place on probation;
             1599          (iv) deny renewal;
             1600          (v) deny reinstatement; or
             1601          (vi) in the case of a denial of a license or a suspension that extends to the expiration
             1602      date of a license, set a waiting period for a person to apply for a license under this chapter;
             1603          (e) issue a cease and desist order;
             1604          (f) require the reimbursement of the division of costs incurred by the division related to
             1605      the recovery, storage, or destruction of a record that the person disposes of in a manner that
             1606      violates this chapter or a rule made under this chapter;
             1607          (g) modify a sanction described in Subsections (2)(a) through (f) if the commission
             1608      finds that the person complies with court ordered restitution; or
             1609          (h) impose any combination of sanctions described in this Subsection (2).
             1610          (3) (a) If the commission, with the concurrence of the division, issues an order that
             1611      orders a fine or educational requirements as part of a disciplinary action against a person,
             1612      including a stipulation and order, the commission shall state in the order the deadline by which
             1613      the person shall comply with the fine or educational requirements.
             1614          (b) If a person fails to comply with a stated deadline:
             1615          (i) the person's license or certificate is automatically suspended:
             1616          (A) beginning the day specified in the order as the deadline for compliance; and
             1617          (B) ending the day on which the person complies in full with the order; and
             1618          (ii) if the person fails to pay a fine required by an order, the division may begin a
             1619      collection process:
             1620          (A) established by the division by rule made in accordance with Title 63G, Chapter 3,
             1621      Utah Administrative Rulemaking Act; and
             1622          (B) subject to Title 63A, Chapter 8, Office of State Debt Collection.
             1623          (4) (a) A person whose license was revoked under this chapter before May 11, 2010,
             1624      may request that the revocation be converted to a suspension under this Subsection (4):
             1625          (i) if the revocation was not as a result of a felony conviction involving fraud,


             1626      misrepresentation, [or] deceit, dishonesty, breach of trust, or money laundering; and
             1627          (ii) by filing a written request with the division.
             1628          (b) Upon receipt of a request to convert a revocation under this Subsection (4), the
             1629      commission, with the concurrence of the director, shall determine whether to convert the
             1630      revocation.
             1631          (c) The commission may delegate to the division the authority to make a decision on
             1632      whether to convert a revocation.
             1633          (d) If the division, acting under Subsection (4)(c), denies a request to convert a
             1634      revocation, the person who requests the conversion may appeal the decision in a hearing
             1635      conducted by the commission:
             1636          (i) after the division denies the request to convert the revocation; and
             1637          (ii) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             1638          (e) The commission may delegate to the division or an administrative law judge the
             1639      authority to conduct a hearing described in Subsection (4)(d).
             1640          Section 21. Section 61-2c-501.5 is amended to read:
             1641           61-2c-501.5. Definitions.
             1642          As used in this part:
             1643          (1) "Civil judgment" means a judgment in a civil action that:
             1644          (a) is awarded in an action brought against a [real estate licensee] person licensed
             1645      under this chapter on the basis of fraud, misrepresentation, or deceit in a residential mortgage
             1646      loan transaction; and
             1647          (b) awards actual damages.
             1648          (2) "Criminal restitution judgment" means a judgment that, in accordance with the
             1649      Utah Code of Criminal Procedure, orders criminal restitution to a person and against a [real
             1650      estate licensee] person licensed under this chapter for a criminal offense involving fraud,
             1651      misrepresentation, or deceit in a residential mortgage loan transaction.
             1652          (3) "Final judgment" means one of the following judgments upon termination of the
             1653      proceedings related to the judgment, including appeals:


             1654          (a) a civil judgment; or
             1655          (b) a criminal restitution judgment.
             1656          (4) "Fund" means the Residential Mortgage Loan Education, Research, and Recovery
             1657      Fund created in Section 61-2c-501 .
             1658          Section 22. Section 61-2c-507 is amended to read:
             1659           61-2c-507. Division subrogated -- Authority to revoke license.
             1660          (1) If the division pays a person from the fund in accordance with this part:
             1661          (a) the division is subrogated to the rights of that person for the amounts paid out of the
             1662      fund; and
             1663          (b) any amount and interest recovered by the division shall be deposited in the fund.
             1664          (2) (a) Subject to Subsection (2)(b), the license of a licensee for whom payment from
             1665      the fund is made under this part is automatically revoked as of the earlier of the day on which:
             1666          (i) the division is ordered by a court to pay from the fund; or
             1667          (ii) the division pays from the fund.
             1668          (b) (i) A person whose license is revoked under Subsection (2)(a) may appeal the
             1669      revocation in a de novo hearing conducted by the commission:
             1670          (A) after the revocation; and
             1671          (B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             1672          (ii) The commission may delegate:
             1673          (A) to the division or an administrative law judge the authority to conduct a hearing
             1674      described in Subsection (2)(b)(i); or
             1675          (B) to the division the authority to make a decision on whether relief from a revocation
             1676      should be granted.
             1677          (3) Unless the revocation is not upheld after a hearing described in Subsection (2)(b), a
             1678      licensee whose license is revoked pursuant to Subsection (2) may not apply for a new license
             1679      until the licensee pays into the fund:
             1680          (a) the amount paid out of the fund on behalf of the licensee; and
             1681          (b) interest at a rate determined by the division with the concurrence of the


             1682      commission.
             1683          Section 23. Section 61-2e-102 is amended to read:
             1684           61-2e-102. Definitions.
             1685          As used in this chapter:
             1686          (1) "Applicable appraisal standards" means:
             1687          (a) the Uniform Standards for Professional Appraisal Practice:
             1688          (i) published by the Appraisal Foundation; and
             1689          (ii) as adopted under Section [ 61-2b-27 ] 61-2g-403 ;
             1690          (b) Chapter [2b] 2g, Real Estate Appraiser Licensing and Certification Act; and
             1691          (c) rules made by the board under Chapter [2b] 2g, Real Estate Appraiser Licensing
             1692      and Certification Act.
             1693          (2) "Appraisal" is as defined in Section [ 61-2b-2 ] 61-2g-102 .
             1694          (3) "Appraisal foundation" is as defined in Section [ 61-2b-2 ] 61-2g-102 .
             1695          (4) "Appraisal management company" means an entity that serves as a third-party
             1696      broker of an appraisal service between a client and an appraiser by:
             1697          (a) [administers] administering a network of appraisers to perform real estate appraisal
             1698      activities for one or more clients;
             1699          (b) (i) [receives] receiving a request for a real estate appraisal activity from a client;
             1700      and
             1701          (ii) for a fee paid by the client, [enters] entering into an agreement with one or more
             1702      appraisers to perform the real estate appraisal activity contained in the request; or
             1703          [(c) otherwise serves as a third-party broker of an appraisal management service
             1704      between a client and an appraiser.]
             1705          (c) any other means.
             1706          (5) "Appraisal management service" means a process of:
             1707          (a) receiving a request for the performance of a real estate appraisal activity from a
             1708      client; and
             1709          (b) for a fee paid by the client, entering into an agreement with one or more appraisers


             1710      to perform the real estate appraisal activity contained in the request.
             1711          (6) "Appraisal report" is as defined in Section [ 61-2b-2 ] 61-2g-102 .
             1712          (7) "Appraiser" means an individual who engages in a real estate appraisal activity.
             1713          (8) "Appraiser panel" means a group of appraisers that are selected by an appraisal
             1714      management company to perform real estate appraisal activities for the appraisal management
             1715      company.
             1716          (9) "Board" means the Real Estate Appraiser Licensing and Certification Board that is
             1717      created in Section [ 61-2b-7 ] 61-2g-204 .
             1718          (10) "Client" means a person that enters into an agreement with an appraisal
             1719      management company for the performance of a real estate appraisal activity.
             1720          (11) "Concurrence" means that the entities that are given a concurring role must jointly
             1721      agree before an action may be taken.
             1722          [(11)] (12) "Controlling person" means:
             1723          (a) an owner, officer, or director of an entity seeking to offer appraisal management
             1724      services;
             1725          (b) an individual employed, appointed, or authorized by an appraisal management
             1726      company who has the authority to:
             1727          (i) enter into a contractual relationship with a client for the performance of an appraisal
             1728      management service; and
             1729          (ii) enter into an agreement with an appraiser for the performance of a real estate
             1730      appraisal activity; or
             1731          (c) an individual who possesses, directly or indirectly, the power to direct or cause the
             1732      direction of the management or policies of an appraisal management company.
             1733          [(12)] (13) "Director" means the director of the division.
             1734          [(13)] (14) "Division" means the Division of Real Estate of the Department of
             1735      Commerce.
             1736          [(14)] (15) "Entity" means:
             1737          (a) a corporation;


             1738          (b) a partnership;
             1739          (c) a sole proprietorship;
             1740          (d) a limited liability company;
             1741          (e) another business entity; or
             1742          (f) a subsidiary or unit of an entity described in Subsections [(14)] (15)(a) through (e).
             1743          [(15)] (16) "Person" means an individual or an entity.
             1744          [(16)] (17) "Real estate appraisal activity" is as defined in Section [ 61-2b-2 ]
             1745      61-2g-102 .
             1746          Section 24. Section 61-2e-103 is amended to read:
             1747           61-2e-103. Rulemaking.
             1748          In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1749      board may make rules, with the concurrence of the division, that are:
             1750          (1) consistent with this chapter; and
             1751          (2) necessary to implement this chapter.
             1752          Section 25. Section 61-2e-202 is amended to read:
             1753           61-2e-202. Initial registration process.
             1754          (1) (a) To register under this chapter as an appraisal management company, an entity
             1755      shall:
             1756          (i) file with the division a registration application in a form prescribed by the division;
             1757          (ii) pay to the division a fee determined in accordance with Section 63J-1-504 ;
             1758          (iii) if the entity is not a resident of this state, submit an irrevocable consent for service
             1759      of process meeting the requirements of Subsection (3); and
             1760          (iv) have the application for registration approved by the division.
             1761          (b) The division shall approve an application if the division finds that the entity:
             1762          (i) complies with this Subsection (1); and
             1763          (ii) meets the qualifications under Section 61-2e-201 .
             1764          (c) The division may, upon compliance with Title 63G, Chapter 4, Administrative
             1765      Procedures Act, deny the issuance of a registration to an applicant on any ground enumerated


             1766      in this chapter.
             1767          (d) If an entity pays a fee or costs to the division with a negotiable instrument or other
             1768      method that is not honored for payment:
             1769          (i) the transaction for which the payment is submitted is voidable by the division;
             1770          (ii) the division may reverse the transaction if payment of the applicable fee or costs is
             1771      not received in full; and
             1772          (iii) the entity's registration is automatically suspended:
             1773          (A) beginning the day on which the payment is due; and
             1774          (B) ending the day on which payment is made in full.
             1775          (2) A registration application shall include the following:
             1776          (a) the name of the entity seeking registration;
             1777          (b) a business address of the entity seeking registration;
             1778          (c) telephone contact information of the entity seeking registration;
             1779          (d) if the entity is not an entity domiciled in this state, the name and contact
             1780      information for the entity's agent for service of process in this state;
             1781          (e) for each individual who owns 10% or more of the entity:
             1782          (i) the individual's name, address, and contact information;
             1783          (ii) a statement of whether or not the individual has had a license or certificate to
             1784      engage in an act related to a real estate or mortgage transaction refused, denied, canceled, or
             1785      revoked in this state or in another state; and
             1786          (iii) (A) fingerprint cards in a form acceptable to the division at the time the
             1787      registration application is filed; and
             1788          (B) consent to a criminal background check by the Utah Bureau of Criminal
             1789      Identification and the Federal Bureau of Investigation regarding the application;
             1790          (f) the name, address, and contact information for each controlling person;
             1791          (g) for the controlling person designated as the contact as required by Section
             1792      61-2e-201 :
             1793          (i) a statement of whether or not the individual has had a license or certificate to


             1794      engage in an act related to a real estate or mortgage transaction refused, denied, canceled, or
             1795      revoked in this state or in another state; and
             1796          (ii) (A) fingerprint cards in a form acceptable to the division at the time the registration
             1797      application is filed; and
             1798          (B) consent to a criminal background check by the Utah Bureau of Criminal
             1799      Identification and the Federal Bureau of Investigation regarding the application;
             1800          (h) provide an explanation required by:
             1801          (i) Section 61-2e-301 , related to adding an individual to an appraiser panel;
             1802          (ii) Section 61-2e-302 , related to the review of the work of an appraiser; and
             1803          (iii) Section 61-2e-303 , related to recordkeeping; and
             1804          (i) any other information required by the board.
             1805          (3) An irrevocable consent for service of process required to be filed under Subsection
             1806      (1) shall provide that process may be served on the entity by delivering the process to the
             1807      director if:
             1808          (a) the service of process is for an action:
             1809          (i) in a court of this state against an entity; and
             1810          (ii) arising out of an act governed by this chapter; and
             1811          (b) a plaintiff cannot, in the exercise of due diligence, obtain personal service upon the
             1812      entity.
             1813          Section 26. Section 61-2e-203 is amended to read:
             1814           61-2e-203. Criminal background check -- Conditional registration -- Changes in
             1815      ownership or controlling person.
             1816          (1) The division shall request the Department of Public Safety to complete a Federal
             1817      Bureau of Investigation criminal background check for an individual described in Subsection
             1818      61-2e-202 [(1)](2)(e) or (g) through the national criminal history system or any successor
             1819      system.
             1820          (2) (a) The entity filing the application under Section 61-2e-202 shall pay the cost of
             1821      the criminal background check and the fingerprinting.


             1822          (b) [Monies] Money paid to the division by an entity for the cost of a criminal
             1823      background check [are] is nonlapsing.
             1824          (3) (a) A registration issued under Section 61-2e-202 is conditional, pending
             1825      completion of a criminal background check.
             1826          (b) [If] (i) A registration shall be immediately and automatically revoked if a criminal
             1827      background check discloses that an individual described in Subsection 61-2e-202 [(1)](2)(e) or
             1828      (g) fails to accurately disclose a criminal history[, the registration is immediately and
             1829      automatically revoked.] involving:
             1830          (A) the appraisal industry;
             1831          (B) the appraisal management industry; or
             1832          (C) a felony conviction on the basis of an allegation of fraud, misrepresentation, or
             1833      deceit.
             1834          (ii) If a criminal background check discloses that an individual described in Subsection
             1835      61-2e-202 (2)(e) or (g) fails to accurately disclose a criminal history other than that described in
             1836      Subsection (3)(b)(i), the division shall review the application, and in accordance with rules
             1837      made by the division pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1838      may:
             1839          (A) place a condition on a registration;
             1840          (B) place a restriction on a registration;
             1841          (C) revoke a registration; or
             1842          (D) refer the application to the board for a decision.
             1843          (c) An entity whose conditional registration is revoked under [this] Subsection (3)(b)(i)
             1844      or whose license is conditioned, restricted, or revoked under Subsection (3)(b)(ii) is entitled to
             1845      a post-revocation hearing conducted in accordance with Title 63G, Chapter 4, Administrative
             1846      Procedures Act, to challenge the revocation.
             1847          (d) The board shall decide whether relief from the revocation of a registration under
             1848      this Subsection (3) will be granted, except that relief from [a] an automatic revocation under
             1849      [this] Subsection (3)(b)(i) may be granted only if:


             1850          (i) the criminal history upon which the revocation is based:
             1851          (A) did not occur; or
             1852          (B) is the criminal history of another individual;
             1853          (ii) (A) the revocation is based on a failure to accurately disclose a criminal history;
             1854      and
             1855          (B) the entity has a reasonable good faith belief at the time of application that there is
             1856      no criminal history to be disclosed; or
             1857          (iii) the division fails to follow the prescribed procedure for the revocation.
             1858          (e) The board may delegate to the division the authority to conduct a post-revocation
             1859      hearing under Subsection (3)(d).
             1860          [(e)] (f) If a registration is revoked or a revocation under this Subsection (3) is upheld
             1861      after a post-revocation hearing, the entity may not apply for a new registration until at least 12
             1862      months after the day on which the registration is revoked.
             1863          (4) (a) An appraisal management company shall comply with this Subsection (4) if
             1864      there is a change in:
             1865          (i) an individual who owns 10% or more of the entity; or
             1866          (ii) the controlling person designated as the contact as required by Section 61-2e-201 .
             1867          (b) If there is a change in an individual described in Subsection (4)(a), within 30 days
             1868      of the day on which the change occurs, the appraisal management company shall file with the
             1869      division:
             1870          (i) the individual's name, address, and contact information;
             1871          (ii) a statement of whether or not the individual has had a license or certificate to
             1872      engage in an act related to a real estate or mortgage transaction refused, denied, canceled, or
             1873      revoked in this state or in another state; and
             1874          (iii) (A) fingerprint cards in a form acceptable to the division at the time the
             1875      registration application is filed; and
             1876          (B) consent to a criminal background check by the Utah Bureau of Criminal
             1877      Identification and the Federal Bureau of Investigation regarding the application.


             1878          Section 27. Section 61-2e-204 is amended to read:
             1879           61-2e-204. Renewal of a registration.
             1880          (1) (a) A registration under this chapter expires two years from the day on which the
             1881      registration is filed.
             1882          (b) Notwithstanding Subsection (1)(a), the time period of a registration may be
             1883      extended or shortened by as much as one year to maintain or change a renewal cycle
             1884      established by rule by the division.
             1885          (2) To renew a registration under this chapter, before the day on which the registration
             1886      expires, an appraisal management company shall:
             1887          (a) file with the division a renewal registration application on a form prescribed by the
             1888      division; and
             1889          (b) pay to the division a fee determined in accordance with Section 63J-1-504 .
             1890          (3) A renewal registration application shall include substantially similar information to
             1891      the information required under Section 61-2e-202 , except that for an individual described in
             1892      Subsection 61-2e-202 [(1)](2)(e) or (g), the entity is required to report whether the individual
             1893      has had:
             1894          (a) (i) a conviction of a criminal offense;
             1895          (ii) the entry of a plea in abeyance to a criminal offense; or
             1896          (iii) the potential resolution of a criminal case by:
             1897          (A) a diversion agreement; or
             1898          (B) another agreement under which a criminal charge is held in suspense for a period
             1899      of time;
             1900          (b) a filing of personal bankruptcy or bankruptcy of a business that transacts the
             1901      appraisal management services;
             1902          (c) the suspension, revocation, surrender, cancellation, or denial of a professional
             1903      license or certification, whether the license or registration is issued by this state or another
             1904      jurisdiction; or
             1905          (d) the entry of a cease and desist order or a temporary or permanent injunction:


             1906          (i) against the individual by a court or government agency; and
             1907          (ii) on the basis of:
             1908          (A) conduct or a practice involving the business of appraisal management services; or
             1909          (B) conduct involving fraud, misrepresentation, or deceit.
             1910          (4) A registration expires if it is not renewed on or before its expiration date, except
             1911      that for a period of 30 days after the expiration date, the registration may be reinstated upon
             1912      compliance with this section, including payment of a renewal fee and a late fee determined by
             1913      the division and the board.
             1914          (5) Notwithstanding Subsection (4), the division may extend the term of a license that
             1915      would expire under Subsection (4) except for the extension if:
             1916          (a) (i) the person complies with the requirements of this section to renew the
             1917      registration; and
             1918          (ii) the renewal application remains pending at the time of the extension; or
             1919          (b) at the time of the extension, there is pending under this chapter a disciplinary
             1920      action.
             1921          Section 28. Section 61-2e-301 is amended to read:
             1922           61-2e-301. Use of licensed or certified appraisers.
             1923          (1) An appraisal management company required to be registered under this chapter
             1924      may not enter into an agreement with an appraiser for the performance of a real estate appraisal
             1925      activity unless the appraiser is licensed or certified in good standing pursuant to Chapter [2b]
             1926      2g, Real Estate Appraiser Licensing and Certification Act.
             1927          (2) (a) An appraisal management company required to be registered under this chapter
             1928      shall have a system to verify that an individual added to the appraiser panel of the appraisal
             1929      management company holds a license or certificate in good standing in this state pursuant to
             1930      Chapter [2b] 2g, Real Estate Appraiser Licensing and Certification Act.
             1931          (b) As part of the registration process under Part 2, Registration, an appraisal
             1932      management company shall biennially provide an explanation of the system described in
             1933      Subsection (2)(a) in the form prescribed by the division.


             1934          Section 29. Section 61-2e-307 is amended to read:
             1935           61-2e-307. Prohibitions related to an appraiser.
             1936          (1) An appraisal management company required to be registered under this chapter, or
             1937      a controlling person, employee, or agent of the appraisal management company may not
             1938      influence or attempt to influence the development, reporting, or review of an appraisal through:
             1939          (a) coercion;
             1940          (b) extortion;
             1941          (c) collusion;
             1942          (d) compensation;
             1943          (e) instruction;
             1944          (f) inducement;
             1945          (g) intimidation;
             1946          (h) bribery; or
             1947          (i) any other manner that would constitute undue influence.
             1948          (2) A violation of Subsection (1) includes doing one or more of the following for a
             1949      purpose listed in Subsection (1):
             1950          (a) withholding or threatening to withhold timely payment for an appraisal;
             1951          (b) withholding or threatening to withhold future business for an appraiser;
             1952          (c) taking adverse action or threatening to take adverse action against an appraiser
             1953      regarding use of the appraiser for a real estate appraisal activity;
             1954          (d) expressly or by implication promising future business or increased compensation
             1955      for an appraiser;
             1956          (e) conditioning one or more of the following on the opinion, conclusion, or valuation
             1957      to be reached, or on a preliminary estimate or opinion requested from an appraiser:
             1958          (i) a request for a real estate appraisal activity; or
             1959          (ii) the payment of consideration;
             1960          (f) requesting that an appraiser provide at any time before the appraiser's completion of
             1961      a real estate appraisal activity:


             1962          (i) an estimated, predetermined, or desired valuation in an appraisal report; or
             1963          (ii) an estimated value or comparable sale;
             1964          (g) except for a copy of a sales contract for a purchase transaction, providing to an
             1965      appraiser:
             1966          (i) an anticipated, estimated, encouraged, or desired value for a subject property; or
             1967          (ii) a proposed or target amount to be loaned to the borrower;
             1968          (h) providing to an appraiser, or an individual related to the appraiser, stock or other
             1969      financial or non-financial benefits;
             1970          (i) allowing the removal of an appraiser from an appraiser panel, without prior written
             1971      notice to the appraiser as required by Section 61-2e-306 ;
             1972          (j) obtaining, using, or paying for a subsequent appraisal or ordering an automated
             1973      valuation model in connection with a mortgage financing transaction unless:
             1974          (i) (A) there is a reasonable basis to believe that the initial appraisal does not meet
             1975      applicable appraisal standards; and
             1976          (B) the reasonable basis is noted in the loan file; or
             1977          (ii) the subsequent appraisal or automated valuation model is done pursuant to a pre- or
             1978      post-funding appraisal review or quality control process in accordance with applicable
             1979      appraisal standards;
             1980          (k) compensating an appraiser in a manner that the person should reasonably have
             1981      known would result in the appraiser not conducting a real estate appraisal activity in a manner
             1982      consistent with applicable appraisal standards;
             1983          (l) engaging in the business of an appraisal management company under an assumed or
             1984      fictitious name not properly registered in this state;
             1985          (m) accepting a contingent fee for performing an appraisal management service if the
             1986      fee is contingent on:
             1987          (i) the appraiser report having a predetermined analysis, opinion, or conclusion;
             1988          (ii) the analysis, opinion, conclusion, or valuation reached in an appraisal report; or
             1989          (iii) the consequences resulting from the appraisal assignment; or


             1990          (n) any other act or practice that impairs or attempts to impair an appraiser's
             1991      independence, objectivity, or impartiality.
             1992          (3) An appraisal management company required to be registered under this chapter, or
             1993      a controlling person, employee, or agent of the appraisal management company, may not
             1994      require an appraiser to indemnify the appraisal management company against liability except
             1995      liability for errors and omissions by the appraiser.
             1996          [(3)] (4) This section may not be construed to prohibit an appraisal management
             1997      company from requesting that an appraiser:
             1998          (a) provide additional information about the basis for a valuation; or
             1999          (b) correct an objective factual error in an appraisal report.
             2000          [(4)] (5) An appraisal management company required to be registered under this
             2001      chapter, or a controlling person, employee, or agent of the appraisal management company may
             2002      not alter, modify, or otherwise change a completed appraisal report submitted by an appraiser.
             2003          Section 30. Section 61-2e-401 is amended to read:
             2004           61-2e-401. Division authority -- Immunity.
             2005          (1) (a) In addition to a power or duty expressly provided in this chapter, the division
             2006      may:
             2007          (i) receive and act on a complaint including:
             2008          (A) taking action designed to obtain voluntary compliance with this chapter; or
             2009          (B) commencing an administrative or judicial proceeding on the division's own
             2010      initiative;
             2011          (ii) investigate an entity required to be registered under this chapter, regardless of
             2012      whether the entity is located in Utah; and
             2013          (iii) employ one or more investigators, clerks, or other employees or agents if:
             2014          (A) approved by the executive director; and
             2015          (B) within the budget of the division.
             2016          (b) A failure to respond to a request by the division in an investigation under this
             2017      chapter is considered to be a separate violation of this chapter, including:


             2018          (i) failing to respond to a subpoena;
             2019          (ii) withholding evidence; or
             2020          (iii) failing to produce a document or record.
             2021          (2) (a) If a person is found to have violated this chapter or a rule made under this
             2022      chapter, the person shall pay the costs incurred by the division to copy a book, paper, contract,
             2023      document, or record required under this chapter, including the costs incurred to copy an
             2024      electronic book, paper, contract, document, or record in a universally readable format.
             2025          (b) If a person fails to pay the costs described in Subsection (2)(a) when due, the
             2026      person's registration is automatically suspended:
             2027          (i) beginning the day on which the payment of costs is due; and
             2028          (ii) ending the day on which the costs are paid.
             2029          [(2)] (3) The division is immune from a civil action or criminal prosecution for
             2030      initiating or assisting in a lawful investigation of an act or participating in a disciplinary
             2031      proceeding under this chapter if the division takes the action:
             2032          (a) without malicious intent; and
             2033          (b) in the reasonable belief that the action is taken pursuant to the powers and duties
             2034      vested in the division under this chapter.
             2035          Section 31. Section 61-2e-402 is amended to read:
             2036           61-2e-402. Enforcement -- Immunity for board.
             2037          (1) (a) The board may order disciplinary action, with the concurrence of the division,
             2038      against:
             2039          (i) an entity registered under this chapter;
             2040          (ii) an entity required to be registered under this chapter; or
             2041          (iii) a controlling person of an entity described in this Subsection (1)(a).
             2042          (b) If the board, with the concurrence of the division, makes a finding described in
             2043      Subsection (2) pursuant to an adjudicative proceeding conducted in accordance with Title 63G,
             2044      Chapter 4, Administrative Procedures Act, the board, with the concurrence of the division,
             2045      may:


             2046          (i) revoke, suspend, or place an entity's registration on probation;
             2047          (ii) deny an entity's original registration;
             2048          (iii) deny an entity's renewal registration;
             2049          (iv) in the case of denial or revocation of a registration, set a waiting period for an
             2050      applicant to apply for a registration under this chapter;
             2051          (v) order remedial education;
             2052          (vi) impose a civil penalty upon a person not to exceed the greater of:
             2053          (A) [$2,500] $5,000 for each violation; or
             2054          (B) the amount of any gain or economic benefit from a violation;
             2055          (vii) issue a cease and desist order; or
             2056          (viii) do a combination of Subsections (1)(b)(i) through (vii).
             2057          (2) Subsection (1) applies if the board finds, with the concurrence of the division, that a
             2058      person has engaged in, is attempting to, or has attempted to engage in:
             2059          (a) an act that violates this chapter;
             2060          (b) an act that violates a rule made [by the board] under this chapter;
             2061          (c) procuring a registration for the person or another person by fraud,
             2062      misrepresentation, or deceit;
             2063          (d) paying money or attempting to pay money other than a fee provided for by this
             2064      chapter to an employee of the division to procure a registration under this chapter;
             2065          (e) an act or omission in the business of an appraisal management company that
             2066      constitutes dishonesty, fraud, or misrepresentation;
             2067          (f) unprofessional conduct as defined by statute or rule; or
             2068          (g) other conduct that constitutes dishonest dealing.
             2069          (3) (a) If the board, with the concurrence of the director, issues an order that orders a
             2070      fine or remedial education as part of a disciplinary action against a person, including a
             2071      stipulation and order, the board shall state in the order the deadline by which the person shall
             2072      comply with the fine or remedial education requirements.
             2073          (b) If a person fails to comply by the stated deadline, the person's registration shall be


             2074      immediately and automatically suspended:
             2075          (i) beginning the day specified in the order as the deadline for compliance; and
             2076          (ii) ending the day on which the person complies in full with the order.
             2077          (c) If a person fails to pay a fine required by an order, the division shall begin a
             2078      collection process:
             2079          (i) established by the division by rule made in accordance with Title 63G, Chapter 3,
             2080      Utah Administrative Rulemaking Act; and
             2081          (ii) subject to Title 63A, Chapter 8, Office of State Debt Collection.
             2082          (4) To the extent permitted by federal law, the board, with the concurrence of the
             2083      division, may bring a disciplinary proceeding under this chapter for a violation of 15 U.S.C.
             2084      Sec. 1639e(i).
             2085          [(3)] (5) A member of the board is immune from a civil action or criminal prosecution
             2086      for a disciplinary proceeding under this chapter if:
             2087          (a) the action is taken without malicious intent; and
             2088          (b) in the reasonable belief that the action taken was taken pursuant to the powers and
             2089      duties vested in a member of the board under this chapter.
             2090          Section 32. Section 61-2f-102 is amended to read:
             2091           61-2f-102. Definitions.
             2092          As used in this chapter:
             2093          (1) "Associate broker" means an individual who is:
             2094          (a) employed or engaged as an independent contractor by or on behalf of a principal
             2095      broker to perform an act set out in Subsection [(17)] (18) for valuable consideration; and
             2096          (b) licensed under this chapter as an associate broker.
             2097          (2) "Branch office" means a principal broker's real estate brokerage office that is not
             2098      the principal broker's main office.
             2099          (3) "Business day" means a day other than:
             2100          (a) a Saturday;
             2101          (b) a Sunday; or


             2102          (c) a federal or state holiday.
             2103          (4) "Business opportunity" means the sale, lease, or exchange of any business that
             2104      includes an interest in real estate.
             2105          [(4)] (5) "Commission" means the Real Estate Commission established under this
             2106      chapter.
             2107          [(5)] (6) "Concurrence" means the entities given a concurring role must jointly agree
             2108      for action to be taken.
             2109          [(6)] (7) "Condominium unit" is as defined in Section 57-8-3 .
             2110          [(7)] (8) "Condominium homeowners' association" means the condominium unit
             2111      owners acting as a group in accordance with declarations and bylaws.
             2112          [(8)] (9) (a) "Condominium hotel" means one or more condominium units that are
             2113      operated as a hotel.
             2114          (b) "Condominium hotel" does not mean a hotel consisting of condominium units, all
             2115      of which are owned by a single entity.
             2116          [(9)] (10) "Director" means the director of the Division of Real Estate.
             2117          [(10)] (11) "Division" means the Division of Real Estate.
             2118          [(11)] (12) "Entity" means:
             2119          (a) a corporation;
             2120          (b) a partnership;
             2121          (c) a limited liability company;
             2122          (d) a company;
             2123          (e) an association;
             2124          (f) a joint venture;
             2125          (g) a business trust;
             2126          (h) a trust; or
             2127          (i) any organization similar to an entity described in Subsections [(11)] (12)(a) through
             2128      (h).
             2129          [(12)] (13) "Executive director" means the director of the Department of Commerce.


             2130          [(13)] (14) "Foreclosure rescue" means, for compensation or with the expectation of
             2131      receiving valuable consideration, to:
             2132          (a) engage, or offer to engage, in an act that:
             2133          (i) the person represents will assist a borrower in preventing a foreclosure; and
             2134          (ii) relates to a transaction involving the transfer of title to residential real property; or
             2135          (b) as an employee or agent of another person:
             2136          (i) solicit, or offer that the other person will engage in an act described in Subsection
             2137      [(13)] (14)(a); or
             2138          (ii) negotiate terms in relationship to an act described in Subsection [(13)] (14)(a).
             2139          [(14)] (15) "Loan modification assistance" means, for compensation or with the
             2140      expectation of receiving valuable consideration, to:
             2141          (a) act, or offer to act, on behalf of a person to:
             2142          (i) obtain a loan term of a residential mortgage loan that is different from an existing
             2143      loan term including:
             2144          (A) an increase or decrease in an interest rate;
             2145          (B) a change to the type of interest rate;
             2146          (C) an increase or decrease in the principal amount of the residential mortgage loan;
             2147          (D) a change in the number of required period payments;
             2148          (E) an addition of collateral;
             2149          (F) a change to, or addition of, a prepayment penalty;
             2150          (G) an addition of a cosigner; or
             2151          (H) a change in persons obligated under the existing residential mortgage loan; or
             2152          (ii) substitute a new residential mortgage loan for an existing residential mortgage loan;
             2153      or
             2154          (b) as an employee or agent of another person:
             2155          (i) solicit, or offer that the other person will engage in an act described in Subsection
             2156      [(14)] (15)(a); or
             2157          (ii) negotiate terms in relationship to an act described in Subsection [(14)] (15)(a).


             2158          [(15)] (16) "Main office" means the address which a principal broker designates with
             2159      the division as the principal broker's primary brokerage office.
             2160          [(16)] (17) "Person" means an individual or entity.
             2161          [(17)] (18) "Principal broker" means an individual who is licensed as a principal broker
             2162      under this chapter and who:
             2163          (a) (i) sells or lists real estate or a business opportunity for sale with the expectation of
             2164      receiving valuable consideration;
             2165          (ii) buys, exchanges, or auctions real estate, [options] an option on real estate, a
             2166      business opportunity, or [improvements] an improvement on real estate with the expectation of
             2167      receiving valuable consideration; or
             2168          (iii) [who] advertises, offers, attempts, or otherwise holds the individual out to be
             2169      engaged in the business described in Subsection [(17)] (18)(a)(i) or (ii);
             2170          (b) is employed by or on behalf of the owner of real estate or by a prospective
             2171      purchaser of real estate and performs an act described in Subsection [(17)] (18)(a), whether the
             2172      individual's compensation is at a stated salary, a commission basis, upon a salary and
             2173      commission basis, or otherwise;
             2174          (c) (i) with the expectation of receiving valuable consideration, manages property
             2175      owned by another person; or
             2176          (ii) advertises or otherwise holds the individual out to be engaged in property
             2177      management;
             2178          (d) with the expectation of receiving valuable consideration, assists or directs in the
             2179      procurement of prospects for or the negotiation of a transaction listed in Subsections [(17)]
             2180      (18)(a) and (c);
             2181          (e) except for a mortgage lender, title insurance producer, or an employee of a
             2182      mortgage lender or title insurance producer, assists or directs in the closing of a real estate
             2183      transaction with the expectation of receiving valuable consideration; or
             2184          (f) (i) engages in foreclosure rescue; or
             2185          (ii) advertises, offers, attempts, or otherwise holds the person out as being engaged in


             2186      foreclosure rescue[; and].
             2187          [(g) is licensed as a principal broker under this chapter.]
             2188          [(18)] (19) (a) "Property management" means engaging in, with the expectation of
             2189      receiving valuable consideration, the management of real estate owned by another person or
             2190      advertising or otherwise claiming to be engaged in property management by:
             2191          (i) advertising for, arranging, negotiating, offering, or otherwise attempting or
             2192      participating in a transaction calculated to secure the rental or leasing of real estate;
             2193          (ii) collecting, agreeing, offering, or otherwise attempting to collect rent for the real
             2194      estate and accounting for and disbursing the money collected; or
             2195          (iii) authorizing expenditures for repairs to the real estate.
             2196          (b) "Property management" does not include:
             2197          (i) hotel or motel management;
             2198          (ii) rental of tourist accommodations, including hotels, motels, tourist homes,
             2199      condominiums, condominium hotels, mobile home park accommodations, campgrounds, or
             2200      similar public accommodations for a period of less than 30 consecutive days, and the
             2201      management activities associated with these rentals; or
             2202          (iii) the leasing or management of surface or subsurface minerals or oil and gas
             2203      interests, if the leasing or management is separate from a sale or lease of the surface estate.
             2204          [(19)] (20) "Real estate" includes leaseholds and business opportunities involving real
             2205      property.
             2206          [(20)] (21) (a) "Regular salaried employee" means an individual who performs a
             2207      service for wages or other remuneration, whose employer withholds federal employment taxes
             2208      under a contract of hire, written or oral, express or implied.
             2209          (b) "Regular salaried employee" does not include an individual who performs services
             2210      on a project-by-project basis or on a commission basis.
             2211          [(21)] (22) "Reinstatement" means restoring a license that has expired or has been
             2212      suspended.
             2213          [(22)] (23) "Reissuance" means the process by which a licensee may obtain a license


             2214      following revocation of the license.
             2215          [(23)] (24) "Renewal" means extending a license for an additional licensing period on
             2216      or before the date the license expires.
             2217          [(24)] (25) "Sales agent" means an individual who is:
             2218          (a) affiliated with a principal broker, either as an independent contractor or an
             2219      employee as provided in Section 61-2f-303 , to perform for valuable consideration an act
             2220      described in Subsection [(17)] (18); and
             2221          (b) licensed under this chapter as a sales agent.
             2222          [(25)] (26) (a) "Undivided fractionalized long-term estate" means an ownership interest
             2223      in real property by two or more persons that is:
             2224          (i) a tenancy in common; or
             2225          (ii) any other legal form of undivided estate in real property including:
             2226          (A) a fee estate;
             2227          (B) a life estate; or
             2228          (C) other long-term estate.
             2229          (b) "Undivided fractionalized long-term estate" does not include a joint tenancy.
             2230          Section 33. Section 61-2f-105 is amended to read:
             2231           61-2f-105. Fees.
             2232          (1) In addition to when expressly authorized in another provision of this chapter, the
             2233      division may charge and collect reasonable fees determined by the commission with the
             2234      concurrence of the division under Section 63J-1-504 to cover the costs for:
             2235          (a) issuing a new or duplicate license;
             2236          (b) registering an entity or branch office;
             2237          (c) certifying a real estate school, course, or instructor;
             2238          (d) providing a history of a license, registration, or certification; [and]
             2239          (e) producing a certified copy of an official document, order, or other paper or
             2240      transcript; and
             2241          (f) other duties required by this chapter.


             2242          (2) Notwithstanding Section 13-1-2 , a fee collected under Subsection (1)(c) shall be
             2243      deposited in the Real Estate Education, Research, and Recovery Fund.
             2244          (3) If a person pays a fee or costs to the division with a negotiable instrument [and the
             2245      negotiable instrument] or other payment method that is not honored for payment:
             2246          (a) the transaction for which the payment is submitted is voidable by the division;
             2247          (b) the division may reverse the transaction if payment of the applicable fee or costs is
             2248      not received in full; and
             2249          (c) the person's license, certification, or registration is automatically suspended:
             2250          (i) beginning the day on which the payment is due; and
             2251          (ii) ending the day on which payment is made in full.
             2252          (4) (a) A fee under this chapter is in lieu of all other license fees or assessments that
             2253      might otherwise be imposed or charged by the state or any of its political subdivisions upon, or
             2254      as a condition of, the privilege of conducting the business regulated by this chapter, except that
             2255      a political subdivision within the state may charge a business license fee on a principal broker
             2256      if the principal broker maintains a place of business within the jurisdiction of the political
             2257      subdivision.
             2258          (b) Unless otherwise exempt, a licensee under this chapter is subject to the taxes
             2259      imposed under Title 59, Revenue and Taxation.
             2260          Section 34. Section 61-2f-202 is amended to read:
             2261           61-2f-202. Exempt persons and transactions.
             2262          (1) (a) Except as provided in Subsection (1)(b), a license under this chapter is not
             2263      required for:
             2264          (i) an individual who as owner or lessor performs an act described in Subsection
             2265      61-2f-102 [(17)](18) with reference to real estate owned or leased by that individual;
             2266          (ii) a regular salaried employee of the owner or lessor of real estate who, with reference
             2267      to nonresidential real estate owned or leased by the employer, performs an act described in
             2268      Subsection 61-2f-102 [(17)](18)(a) or (b);
             2269          (iii) a regular salaried employee of the owner of real estate who performs property


             2270      management services with reference to real estate owned by the employer, except that the
             2271      employee may only manage real estate for one employer;
             2272          (iv) an individual who performs property management services for the apartments at
             2273      which that individual resides in exchange for free or reduced rent on that individual's
             2274      apartment;
             2275          (v) a regular salaried employee of a condominium homeowners' association who
             2276      manages real estate subject to the declaration of condominium that established the
             2277      condominium homeowners' association, except that the employee may only manage real estate
             2278      for one condominium homeowners' association; and
             2279          (vi) a regular salaried employee of a licensed property management company who
             2280      performs support services, as prescribed by rule, for the property management company.
             2281          (b) Subsection (1)(a) does not exempt from licensing:
             2282          (i) an employee engaged in the sale of real estate regulated under:
             2283          (A) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act; [and] or
             2284          (B) Title 57, Chapter 19, Timeshare and Camp Resort Act;
             2285          (ii) an employee engaged in the sale of cooperative interests regulated under Title 57,
             2286      Chapter 23, Real Estate Cooperative Marketing Act; or
             2287          (iii) an individual whose interest as an owner or lessor is obtained by that individual or
             2288      transferred to that individual for the purpose of evading the application of this chapter, and not
             2289      for another legitimate business reason.
             2290          (2) A license under this chapter is not required for:
             2291          (a) an isolated transaction by an individual holding a duly executed power of attorney
             2292      from an owner;
             2293          (b) services rendered by an attorney in performing the attorney's duties as an attorney;
             2294          (c) a receiver, trustee in bankruptcy, administrator, executor, or an individual acting
             2295      under order of a court;
             2296          (d) a trustee or employee of a trustee under a deed of trust or a will;
             2297          (e) a public utility, officer of a public utility, or regular salaried employee of a public


             2298      utility, unless performance of an act described in Subsection 61-2f-102 [(17)](18) is in
             2299      connection with the sale, purchase, lease, or other disposition of real estate or investment in
             2300      real estate unrelated to the principal business activity of that public utility;
             2301          (f) a regular salaried employee or authorized agent working under the oversight of the
             2302      Department of Transportation when performing an act on behalf of the Department of
             2303      Transportation in connection with one or more of the following:
             2304          (i) the acquisition of real estate pursuant to Section 72-5-103 ;
             2305          (ii) the disposal of real estate pursuant to Section 72-5-111 ;
             2306          (iii) services that constitute property management; or
             2307          (iv) the leasing of real estate; and
             2308          (g) a regular salaried employee of a county, city, or town when performing an act on
             2309      behalf of the county, city, or town:
             2310          (i) in accordance with:
             2311          (A) if a regular salaried employee of a city or town:
             2312          (I) Title 10, Utah Municipal Code; or
             2313          (II) Title 11, Cities, Counties, and Local Taxing Units; and
             2314          (B) if a regular salaried employee of a county:
             2315          (I) Title 11, Cities, Counties, and Local Taxing Units; and
             2316          (II) Title 17, Counties; and
             2317          (ii) in connection with one or more of the following:
             2318          (A) the acquisition of real estate, including by eminent domain;
             2319          (B) the disposal of real estate;
             2320          (C) services that constitute property management; or
             2321          (D) the leasing of real estate.
             2322          (3) A license under this chapter is not required for an individual registered to act as a
             2323      broker-dealer, agent, or investment adviser under the Utah and federal securities laws in the
             2324      sale or the offer for sale of real estate if:
             2325          (a) (i) the real estate is a necessary element of a "security" as that term is defined by the


             2326      Securities Act of 1933 and the Securities Exchange Act of 1934; and
             2327          (ii) the security is registered for sale in accordance with:
             2328          (A) the Securities Act of 1933; or
             2329          (B) Title 61, Chapter 1, Utah Uniform Securities Act; or
             2330          (b) (i) it is a transaction in a security for which a Form D, described in 17 C.F.R. Sec.
             2331      239.500, has been filed with the Securities and Exchange Commission pursuant to Regulation
             2332      D, Rule 506, 17 C.F.R. Sec. 230.506; and
             2333          (ii) the selling agent and the purchaser are not residents of this state.
             2334          Section 35. Section 61-2f-203 is amended to read:
             2335           61-2f-203. Licensing requirements.
             2336          (1) (a) Except as provided in Subsection (5), the commission shall determine the
             2337      qualifications and requirements of an applicant for:
             2338          (i) a principal broker license;
             2339          (ii) an associate broker license; or
             2340          (iii) a sales agent license.
             2341          (b) The division, with the concurrence of the commission, shall require and pass upon
             2342      proof necessary to determine the honesty, integrity, truthfulness, reputation, and competency of
             2343      each applicant for an initial license or for renewal of an existing license.
             2344          (c) (i) The division, with the concurrence of the commission, shall require an applicant
             2345      for:
             2346          (A) a sales agent license to complete an approved educational program consisting of
             2347      the number of hours designated by rule made by the commission with the concurrence of the
             2348      division, except that the rule may not require less than 120 hours; and
             2349          (B) an associate broker or a principal broker license to complete an approved
             2350      educational program consisting of the number of hours designated by rule made by the
             2351      commission with the concurrence of the division, except that the rule may not require less than
             2352      120 hours.
             2353          (ii) An hour required by this section means 50 minutes of instruction in each 60


             2354      minutes.
             2355          (iii) The maximum number of program hours available to an individual is eight hours
             2356      per day.
             2357          (d) The division, with the concurrence of the commission, shall require the applicant to
             2358      pass an examination approved by the commission covering:
             2359          (i) the fundamentals of:
             2360          (A) the English language;
             2361          (B) arithmetic;
             2362          (C) bookkeeping; and
             2363          (D) real estate principles and practices;
             2364          (ii) [the provisions of] this chapter;
             2365          (iii) the rules established by the commission; and
             2366          (iv) any other aspect of Utah real estate license law considered appropriate.
             2367          (e) (i) Three years' full-time experience as a sales agent or its equivalent is required
             2368      before an applicant may apply for, and secure a principal broker or associate broker license in
             2369      this state.
             2370          (ii) The commission shall establish by rule, made in accordance with Title 63G,
             2371      Chapter 3, Utah Administrative Rulemaking Act, the criteria by which the commission will
             2372      accept experience or special education in similar fields of business in lieu of the three years'
             2373      experience.
             2374          (2) (a) The division, with the concurrence of the commission, may require an applicant
             2375      to furnish a sworn statement setting forth evidence satisfactory to the division of the applicant's
             2376      reputation and competency as set forth by rule.
             2377          (b) The division shall require an applicant to provide the applicant's Social Security
             2378      number, which is a private record under Subsection 63G-2-302 (1)(h).
             2379          (3) (a) An individual who is not a resident of this state may be licensed in this state if
             2380      the person complies with [all the provisions of] this chapter.
             2381          (b) An individual who is not a resident of this state may be licensed as an associate


             2382      broker or sales agent in this state by:
             2383          (i) complying with [all the provisions of] this chapter; and
             2384          (ii) being employed or engaged as an independent contractor by or on behalf of a
             2385      principal broker who is licensed in this state, regardless of whether the principal broker is a
             2386      resident of this state.
             2387          (4) (a) [Except as provided in Subsection 61-2f-204 (1)(e)(vi), the] The division and
             2388      commission shall treat an application to be relicensed of an applicant whose real estate license
             2389      is revoked as an original application.
             2390          (b) In the case of an applicant for a new license as a principal broker or associate
             2391      broker, the applicant is not entitled to credit for experience gained before the revocation of a
             2392      real estate license.
             2393          (5) (a) Notwithstanding Subsection (1), the commission may delegate to the division
             2394      the authority to:
             2395          (i) review a class or category of applications for initial or renewed licenses;
             2396          (ii) determine whether an applicant meets the licensing criteria in Subsection (1); and
             2397          (iii) approve or deny a license application without concurrence by the commission.
             2398          (b) (i) If the commission delegates to the division the authority to approve or deny an
             2399      application without concurrence by the commission and the division denies an application for
             2400      licensure, the applicant who is denied licensure may petition the commission for de novo
             2401      review of the [denial of licensure] application.
             2402          (ii) An applicant who is denied licensure pursuant to this Subsection (5) may seek
             2403      agency review by the executive director only after the commission has reviewed the division's
             2404      denial of the applicant's application.
             2405          Section 36. Section 61-2f-204 is amended to read:
             2406           61-2f-204. Licensing fees and procedures -- Renewal fees and procedures.
             2407          (1) (a) Upon filing an application for an examination for a license under this chapter,
             2408      the applicant shall pay a nonrefundable fee as determined by the commission with the
             2409      concurrence of the division under Section 63J-1-504 for admission to the examination.


             2410          (b) An applicant for a principal broker, associate broker, or sales agent license shall
             2411      pay a nonrefundable fee as determined by the commission with the concurrence of the division
             2412      under Section 63J-1-504 for issuance of an initial license or license renewal.
             2413          (c) A license issued under this Subsection (1) shall be issued for a period of not less
             2414      than two years as determined by the division with the concurrence of the commission.
             2415          (d) (i) Any of the following applicants shall comply with this Subsection (1)(d):
             2416          (A) a new sales agent applicant;
             2417          (B) a principal broker applicant; or
             2418          (C) an associate broker applicant.
             2419          (ii) An applicant described in this Subsection (1)(d) shall:
             2420          (A) submit fingerprint cards in a form acceptable to the division at the time the license
             2421      application is filed; and
             2422          (B) consent to a criminal background check by the Utah Bureau of Criminal
             2423      Identification and the Federal Bureau of Investigation regarding the application.
             2424          (iii) The division shall request the Department of Public Safety to complete a Federal
             2425      Bureau of Investigation criminal background check for each applicant described in this
             2426      Subsection (1)(d) through the national criminal history system or any successor system.
             2427          (iv) The applicant shall pay the cost of the criminal background check and the
             2428      fingerprinting.
             2429          (v) Money paid to the division by an applicant for the cost of the criminal background
             2430      check is nonlapsing.
             2431          (e) (i) A license issued under Subsection (1)(d) is conditional, pending completion of
             2432      the criminal background check.
             2433          (ii) A license is immediately and automatically revoked if the criminal background
             2434      check discloses the applicant fails to accurately disclose a criminal history involving:
             2435          (A) the real estate industry; or
             2436          [(B) fraud;]
             2437          [(C) misrepresentation; or]


             2438          [(D) deceit.]
             2439          (B) a felony conviction on the basis of an allegation of fraud, misrepresentation, or
             2440      deceit.
             2441          (iii) If a criminal background check discloses that an applicant fails to accurately
             2442      disclose a criminal history other than one described in Subsection (1)(e)(ii), the division:
             2443          (A) shall review the application; and
             2444          (B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
             2445      Utah Administrative Rulemaking Act, may:
             2446          (I) place a condition on a license;
             2447          (II) place a restriction on a license;
             2448          (III) revoke a license; or
             2449          (IV) refer the application to the commission for a decision.
             2450          (iv) A person whose conditional license is automatically revoked under Subsection
             2451      (1)(e)(ii) or whose license is conditioned, restricted, or revoked under Subsection (1)(e)(iii)
             2452      may have a hearing after the action is taken to challenge the action. The hearing shall be
             2453      conducted in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             2454          (v) The director shall designate one of the following to act as the presiding officer in a
             2455      hearing described in Subsection (1)(e)(iv):
             2456          (A) the division; or
             2457          (B) the division with the concurrence of the commission.
             2458          (vi) The decision on whether relief from an action under this Subsection (1)(e) will be
             2459      granted shall be made by the presiding officer.
             2460          (vii) Relief from an automatic revocation under Subsection (1)(e)(ii) may be granted
             2461      only if:
             2462          (A) the criminal history upon which the division based the revocation:
             2463          (I) did not occur; or
             2464          (II) is the criminal history of another person;
             2465          (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and


             2466          (II) the applicant has a reasonable good faith belief at the time of application that there
             2467      was no criminal history to be disclosed; or
             2468          (C) the division fails to follow the prescribed procedure for the revocation.
             2469          (viii) If a license is revoked or a revocation under this Subsection (1)(e) is upheld after
             2470      a hearing, the individual may not apply for a new license until at least 12 months after the day
             2471      on which the license is revoked.
             2472          (2) (a) (i) A license expires if it is not renewed on or before its expiration date.
             2473          (ii) As a condition of renewal, an active licensee shall demonstrate competence by
             2474      completing 18 hours of continuing education within a two-year renewal period subject to rules
             2475      made by the commission, with the concurrence of the division.
             2476          (iii) In making a rule described in Subsection (2)(c)(ii), the division and commission
             2477      shall consider:
             2478          (A) evaluating continuing education on the basis of competency, rather than course
             2479      time;
             2480          (B) allowing completion of courses in a significant variety of topic areas that the
             2481      division and commission determine are valuable in assisting an individual licensed under this
             2482      chapter to increase the individual's competency; and
             2483          (C) allowing completion of courses that will increase a licensee's professional
             2484      competency in the area of practice of the licensee.
             2485          (iv) The division may award credit to a licensee for a continuing education requirement
             2486      of this Subsection (2)(a) for a reasonable period of time upon a finding of reasonable cause,
             2487      including:
             2488          (A) military service; or
             2489          (B) if an individual is elected or appointed to government service, the individual's
             2490      government service during which the individual spends a substantial time addressing real estate
             2491      issues subject to conditions established by rule made in accordance with Title 63G, Chapter 3,
             2492      Utah Administrative Rulemaking Act.
             2493          (b) For a period of 30 days after the expiration date of a license, the license may be


             2494      reinstated upon:
             2495          (i) payment of a renewal fee and a late fee determined by the commission with the
             2496      concurrence of the division under Section 63J-1-504 ; and
             2497          (ii) providing proof acceptable to the division and the commission of the licensee
             2498      having:
             2499          (A) completed the hours of education required by Subsection (2)(a); or
             2500          (B) demonstrated competence as required under Subsection (2)(a).
             2501          (c) After the 30-day period described in Subsection (2)(b), and until six months after
             2502      the expiration date, the license may be reinstated by:
             2503          (i) paying a renewal fee and a late fee determined by the commission with the
             2504      concurrence of the division under Section 63J-1-504 ;
             2505          (ii) providing to the division proof of satisfactory completion of six hours of continuing
             2506      education:
             2507          (A) in addition to the requirements for a timely renewal; and
             2508          (B) on a subject determined by the commission by rule made in accordance with Title
             2509      63G, Chapter 3, Utah Administrative Rulemaking Act; and
             2510          (iii) providing proof acceptable to the division and the commission of the licensee
             2511      having:
             2512          (A) completed the hours of education required under Subsection (2)(a); or
             2513          (B) demonstrated competence as required under Subsection (2)(a).
             2514          (d) After the six-month period described in Subsection (2)(c), and until one year after
             2515      the expiration date, the license may be reinstated by:
             2516          (i) paying a renewal fee and a late fee determined by the commission with the
             2517      concurrence of the division under Section 63J-1-504 ;
             2518          (ii) providing to the division proof of satisfactory completion of 24 hours of continuing
             2519      education:
             2520          (A) in addition to the requirements for a timely renewal; and
             2521          (B) on a subject determined by the commission by rule made in accordance with Title


             2522      63G, Chapter 3, Utah Administrative Rulemaking Act; and
             2523          (iii) providing proof acceptable to the division and the commission of the licensee
             2524      having:
             2525          (A) completed the hours of education required by Subsection (2)(a); or
             2526          (B) demonstrated competence as required under Subsection (2)(a).
             2527          (e) The division shall relicense a person who does not renew that person's license
             2528      within one year as prescribed for an original application.
             2529          (f) Notwithstanding Subsection (2)(a), the division may extend the term of a license
             2530      that would expire under Subsection (2)(a) except for the extension if:
             2531          (i) (A) the person complies with the requirements of this section to renew the license;
             2532      and
             2533          [(ii)] (B) the renewal application remains pending at the time of the extension[, there is
             2534      pending under this chapter:]; or
             2535          [(A) the application for renewal of the license; or]
             2536          [(B)] (ii) at the time of the extension, there is pending a disciplinary action under this
             2537      chapter.
             2538          (3) (a) As a condition for the activation of an inactive license that was in an inactive
             2539      status at the time of the licensee's most recent renewal, the licensee shall supply the division
             2540      with proof of:
             2541          (i) successful completion of the respective sales agent or principal broker licensing
             2542      examination within six months [prior to] before applying to activate the license; or
             2543          (ii) the successful completion of the hours of continuing education that the licensee
             2544      would have been required to complete under Subsection (2)(a) if the license had been on active
             2545      status at the time of the licensee's most recent renewal.
             2546          (b) The commission may, in accordance with Title 63G, Chapter 3, Utah
             2547      Administrative Rulemaking Act, establish by rule:
             2548          (i) the nature or type of continuing education required for reactivation of a license; and
             2549          (ii) how long before reactivation the continuing education must be completed.


             2550          Section 37. Section 61-2f-206 is amended to read:
             2551           61-2f-206. Registration of entity or branch office -- Certification of education
             2552      providers and courses -- Specialized licenses.
             2553          (1) (a) An entity may not engage in an activity described in Section 61-2f-201 , unless it
             2554      is registered with the division.
             2555          (b) To register with the division under this Subsection (1), an entity shall submit to the
             2556      division:
             2557          (i) an application in a form required by the division;
             2558          (ii) evidence of an affiliation with a principal broker;
             2559          (iii) evidence that the entity is registered and in good standing with the Division of
             2560      Corporations and Commercial Code; and
             2561          (iv) a registration fee established by the commission with the concurrence of the
             2562      division under Section 63J-1-504 .
             2563          (2) (a) A principal broker shall register with the division each of the principal broker's
             2564      branch offices.
             2565          (b) To register a branch office with the division under this Subsection (2), a principal
             2566      broker shall submit to the division:
             2567          (i) an application in a form required by the division; and
             2568          (ii) a registration fee established by the commission with the concurrence of the
             2569      division under Section 63J-1-504 .
             2570          (3) (a) In accordance with rules made by the commission, the division shall certify:
             2571          (i) a real estate school;
             2572          (ii) a course provider; or
             2573          (iii) an instructor.
             2574          (b) In accordance with rules made by the commission, and with the concurrence of the
             2575      commission, the division shall certify a continuing education course that is required under this
             2576      [section] chapter.
             2577          (4) (a) Except as provided by rule, a principal broker may not be responsible for more


             2578      than one registered entity at the same time.
             2579          (b) (i) In addition to issuing a principal broker license, associate broker license, or sales
             2580      agent license authorizing the performance of an act set forth in Section 61-2f-201 , the division
             2581      may issue a specialized sales license or specialized property management license with the
             2582      scope of practice limited to the specialty.
             2583          (ii) An individual may hold a specialized license in addition to a license as a principal
             2584      broker, associate broker, or a sales agent.
             2585          (iii) The commission may adopt rules pursuant to Title 63G, Chapter 3, Utah
             2586      Administrative Rulemaking Act, for the administration of this Subsection (4), including:
             2587          (A) prelicensing and postlicensing education requirements;
             2588          (B) examination requirements;
             2589          (C) affiliation with real estate brokerages or property management companies; and
             2590          (D) other licensing procedures.
             2591          Section 38. Section 61-2f-301 is amended to read:
             2592           61-2f-301. Reporting requirements.
             2593          (1) A licensee shall notify the division of the following by sending the division a
             2594      signed statement within 10 business days of:
             2595          [(1)] (a) (i) a conviction of a [criminal offense] felony, class A misdemeanor, or class
             2596      B misdemeanor;
             2597          [(b)] (ii) the entry of a plea in abeyance to a [criminal offense] felony, class A
             2598      misdemeanor, or class B misdemeanor; or
             2599          [(c)] (iii) the potential resolution of a [criminal case] felony, class A misdemeanor, or
             2600      class B misdemeanor by:
             2601          [(i)] (A) a diversion agreement; or
             2602          [(ii)] (B) another agreement under which a criminal charge is held in suspense for a
             2603      period of time;
             2604          [(2)] (b) filing a personal or brokerage bankruptcy;
             2605          [(3)] (c) the suspension, revocation, surrender, cancellation, or denial of a license or


             2606      registration of the licensee that is necessary to engage in an occupation or profession,
             2607      regardless of whether the license or registration is issued by this state or another jurisdiction; or
             2608          [(4)] (d) the entry of a cease and desist order or a temporary or permanent injunction:
             2609          [(a)] (i) against the licensee by a court or administrative agency; and
             2610          [(b)] (ii) on the basis of:
             2611          [(i)] (A) conduct or a practice involving the business of real estate; or
             2612          [(ii)] (B) conduct involving fraud, misrepresentation, or deceit.
             2613          (2) The commission, with the concurrence of the director, shall enforce the reporting
             2614      requirement under this section pursuant to Section 61-2f-404 .
             2615          Section 39. Section 61-2f-401 is amended to read:
             2616           61-2f-401. Grounds for disciplinary action.
             2617          The following acts are unlawful for a person required to be licensed under this chapter:
             2618          (1) (a) making a substantial misrepresentation;
             2619          (b) making an intentional misrepresentation;
             2620          (c) pursuing a continued and flagrant course of misrepresentation;
             2621          (d) making a false representation or promise through an agent, sales agent, advertising,
             2622      or otherwise; or
             2623          (e) making a false representation or promise of a character likely to influence,
             2624      persuade, or induce;
             2625          (2) acting for more than one party in a transaction without the informed consent of [all]
             2626      the parties;
             2627          (3) (a) acting as an associate broker or sales agent while not affiliated with a principal
             2628      broker;
             2629          (b) representing or attempting to represent a principal broker other than the principal
             2630      broker with whom the person is affiliated; or
             2631          (c) representing as sales agent or having a contractual relationship similar to that of
             2632      sales agent with a person other than a principal broker;
             2633          (4) (a) failing, within a reasonable time, to account for or to remit money that belongs


             2634      to another and comes into the person's possession;
             2635          (b) commingling money described in Subsection (4)(a) with the person's own money;
             2636      or
             2637          (c) diverting money described in Subsection (4)(a) from the purpose for which the
             2638      money is received;
             2639          (5) paying or offering to pay valuable consideration, as defined by the commission, to a
             2640      person not licensed under this chapter, except that valuable consideration may be shared:
             2641          (a) with a principal broker of another jurisdiction; or
             2642          (b) as provided under:
             2643          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act;
             2644          (ii) Title 16, Chapter 11, Professional Corporation Act; or
             2645          (iii) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act;
             2646          (6) being incompetent to act as a principal broker, associate broker, or sales agent in
             2647      such manner as to safeguard the interests of the public;
             2648          (7) failing to voluntarily furnish a copy of a document to [all] the parties before and
             2649      after the execution of a document;
             2650          (8) failing to keep and make available for inspection by the division a record of each
             2651      transaction, including:
             2652          (a) the names of buyers and sellers or lessees and lessors;
             2653          (b) the identification of real estate;
             2654          (c) the sale or rental price;
             2655          (d) money received in trust;
             2656          (e) agreements or instructions from buyers and sellers or lessees and lessors; and
             2657          (f) any other information required by rule;
             2658          (9) failing to disclose, in writing, in the purchase, sale, or rental of real estate, whether
             2659      the purchase, sale, or rental is made for that person or for an undisclosed principal;
             2660          (10) being convicted of a criminal offense involving moral turpitude within five years
             2661      of the most recent application:


             2662          (a) regardless of whether the criminal offense is related to real estate; and
             2663          (b) including:
             2664          (i) a conviction based upon a plea of nolo contendere; or
             2665          (ii) a plea held in abeyance to a criminal offense involving moral turpitude;
             2666          (11) advertising the availability of real estate or the services of a licensee in a false,
             2667      misleading, or deceptive manner;
             2668          (12) in the case of a principal broker or a licensee who is a branch manager, failing to
             2669      exercise reasonable supervision over the activities of the principal broker's or branch manager's
             2670      licensed or unlicensed staff;
             2671          (13) violating or disregarding:
             2672          (a) this chapter;
             2673          (b) an order of the commission; or
             2674          (c) the rules adopted by the commission and the division;
             2675          (14) breaching a fiduciary duty owed by a licensee to the licensee's principal in a real
             2676      estate transaction;
             2677          (15) any other conduct which constitutes dishonest dealing;
             2678          (16) unprofessional conduct as defined by statute or rule;
             2679          (17) having one of the following suspended, revoked, surrendered, or cancelled on the
             2680      basis of misconduct in a professional capacity that relates to character, honesty, integrity, or
             2681      truthfulness:
             2682          (a) a real estate license, registration, or certificate issued by another jurisdiction; or
             2683          (b) another license, registration, or certificate to engage in an occupation or profession
             2684      issued by this state or another jurisdiction;
             2685          (18) failing to respond to a request by the division in an investigation authorized under
             2686      this chapter, including:
             2687          (a) failing to respond to a subpoena;
             2688          (b) withholding evidence; or
             2689          (c) failing to produce documents or records;


             2690          (19) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             2691          (a) providing a title insurance product or service without the approval required by
             2692      Section 31A-2-405 ; or
             2693          (b) knowingly providing false or misleading information in the statement required by
             2694      Subsection 31A-2-405 (2);
             2695          (20) violating an independent contractor agreement between a principal broker and a
             2696      sales agent or associate broker as evidenced by a final judgment of a court;
             2697          (21) (a) engaging in a foreclosure rescue if not licensed under this chapter;
             2698          (b) engaging in an act of loan modification assistance that requires licensure as a
             2699      mortgage officer under Chapter 2c, Utah Residential Mortgage Practices and Licensing Act,
             2700      without being licensed under that chapter;
             2701          (c) engaging in an act of foreclosure rescue without entering into a written agreement
             2702      specifying what one or more acts of foreclosure rescue will be completed;
             2703          [(c)] (d) requesting or requiring a person to pay a fee [if:] for a foreclosure rescue
             2704      service before obtaining a written agreement:
             2705          [(i) the person is required to pay the fee before entering into a written agreement
             2706      specifying what one or more acts of foreclosure rescue will be completed if the fee is paid; or]
             2707          [(ii) in a case when the financing that is the subject of the foreclosure rescue is
             2708      foreclosed within one year from the day on which the person enters into a written agreement,
             2709      the person is required to forfeit the fee for any reason;]
             2710          (i) between the person and the person's lender or servicer; and
             2711          (ii) by which title to the residential real estate at risk of foreclosure will be transferred;
             2712          [(d)] (e) inducing a person who is at risk of foreclosure to hire the licensee to engage in
             2713      an act of foreclosure rescue by:
             2714          (i) suggesting to the person that the licensee has a special relationship with the person's
             2715      lender or loan servicer; or
             2716          (ii) falsely representing or advertising that the licensee is acting on behalf of:
             2717          (A) a government agency;


             2718          (B) the person's lender or loan servicer; or
             2719          (C) a nonprofit or charitable institution; or
             2720          [(e)] (f) recommending or participating in a foreclosure rescue that requires a person
             2721      to:
             2722          (i) transfer title to real [property] estate to the licensee or to a [third party] third-party
             2723      with whom the licensee has a business relationship or financial interest;
             2724          (ii) make a mortgage payment to a person other than the person's loan servicer; or
             2725          (iii) refrain from contacting the person's:
             2726          (A) lender;
             2727          (B) loan servicer;
             2728          (C) attorney;
             2729          (D) credit counselor; or
             2730          (E) housing counselor; or
             2731          (22) for an agreement for foreclosure rescue entered into on or after May 11, 2010,
             2732      engaging in an act of foreclosure rescue without offering in writing to the person entering into
             2733      the agreement for foreclosure rescue a right to cancel the agreement within three business days
             2734      after the day on which the person enters the agreement.
             2735          Section 40. Section 61-2g-101 , which is renumbered from Section 61-2b-1 is
             2736      renumbered and amended to read:
             2737     
CHAPTER 2g. REAL ESTATE APPRAISER LICENSING AND     CERTIFICATION

             2738     
ACT

             2739     
Part 1. General Provisions

             2740           [61-2b-1].     61-2g-101. Title.
             2741          This chapter is known as the "Real Estate Appraiser Licensing and Certification Act."
             2742          Section 41. Section 61-2g-102 , which is renumbered from Section 61-2b-2 is
             2743      renumbered and amended to read:
             2744           [61-2b-2].     61-2g-102. Definitions.
             2745          (1) As used in this chapter:


             2746          (a) (i) "Appraisal" means an unbiased analysis, opinion, or conclusion relating to the
             2747      nature, quality, value, or utility of a specified interest in, or aspect of, identified real estate or
             2748      identified real property.
             2749          (ii) An appraisal is classified by the nature of the assignment as a valuation appraisal,
             2750      an analysis assignment, or a review assignment in accordance with the following definitions:
             2751          (A) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that
             2752      relates to the nature, quality, or utility of identified real estate or identified real property.
             2753          (B) "Review assignment" means an unbiased analysis, opinion, or conclusion that
             2754      forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis
             2755      assignment.
             2756          (C) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
             2757      estimates the value of an identified parcel of real estate or identified real property at a particular
             2758      point in time.
             2759          (b) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as
             2760      an Illinois not-for-profit corporation on November 30, 1987.
             2761          (c) (i) "Appraisal report" means a communication, written or oral, of an appraisal.
             2762          (ii) An appraisal report is classified by the nature of the assignment as a valuation
             2763      report, analysis report, or review report in accordance with the definitions provided in
             2764      Subsection (1)(a)(ii).
             2765          (iii) The testimony of a person relating to the person's analyses, conclusions, or
             2766      opinions concerning identified real estate or identified real property is considered to be an oral
             2767      appraisal report.
             2768          (d) "Appraisal Qualification Board" means the Appraisal Qualification Board of the
             2769      Appraisal Foundation.
             2770          (e) "Board" means the Real Estate Appraiser Licensing and Certification Board that is
             2771      established in Section [ 61-2b-7 ] 61-2g-204 .
             2772          (f) "Certified appraisal report" means a written or oral appraisal report that is certified
             2773      by a state-certified general appraiser or state-certified residential appraiser.


             2774          (g) "Concurrence" means that the entities that are given a concurring role jointly agree
             2775      to an action.
             2776          (h) (i) (A) "Consultation service" means an engagement to provide a real estate
             2777      valuation service analysis, opinion, conclusion, or other service that does not fall within the
             2778      definition of appraisal.
             2779          (B) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
             2780      review assignment.
             2781          (ii) Regardless of the intention of the client or employer, if a person prepares an
             2782      unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
             2783      be an appraisal and not a consultation service.
             2784          (i) "Contingent fee" means a fee or other form of compensation, payment of which is
             2785      dependent on or conditioned by:
             2786          (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
             2787      performing the analysis, opinion, or conclusion; or
             2788          (ii) achieving a result specified by the person requesting the analysis, opinion, or
             2789      conclusion.
             2790          (j) "Division" means the Division of Real Estate of the Department of Commerce.
             2791          (k) "Federally related transaction" means a real estate related transaction that is
             2792      required by federal law or by federal regulation to be supported by an appraisal prepared by:
             2793          (i) a state-licensed appraiser; or
             2794          (ii) a state-certified appraiser.
             2795          (l) "Real estate" means an identified parcel or tract of land including improvements if
             2796      any.
             2797          (m) "Real estate appraisal activity" means the act or process of making an appraisal of
             2798      real estate or real property and preparing an appraisal report.
             2799          (n) "Real estate related transaction" means:
             2800          (i) the sale, lease, purchase, investment in, or exchange of real property or an interest in
             2801      real property, or the financing of such a transaction;


             2802          (ii) the refinancing of real property or an interest in real property; or
             2803          (iii) the use of real property or an interest in real property as security for a loan or
             2804      investment, including mortgage-backed securities.
             2805          (o) "Real property" means one or more defined interests, benefits, or rights inherent in
             2806      the ownership of real estate.
             2807          (p) "State-certified general appraiser" means a person who holds a current, valid
             2808      certification as a state-certified general appraiser issued under this chapter.
             2809          (q) "State-certified residential appraiser" means a person who holds a current, valid
             2810      certification as a state-certified residential real estate appraiser issued under this chapter.
             2811          (r) "State-licensed appraiser" means a person who holds a current, valid license as a
             2812      state-licensed appraiser issued under this chapter.
             2813          (s) "Trainee" means an individual who:
             2814          (i) does not hold an appraiser license or appraiser certification issued under this
             2815      chapter;
             2816          (ii) works under the direct supervision of a state-certified appraiser to earn experience
             2817      for licensure; and
             2818          (iii) is registered as a trainee under this chapter.
             2819          (t) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
             2820      conclusion relating to the nature, quality, value, or utility of identified real estate or identified
             2821      real property that is prepared by a person who is employed or retained to act, or would be
             2822      perceived by third parties or the public as acting, as a disinterested [third party] third-party in
             2823      rendering the analysis, opinion, or conclusion.
             2824          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             2825      meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
             2826      Utah Administrative Rulemaking Act.
             2827          (b) If a term not defined in this section is not defined by rule, the term shall have the
             2828      meaning commonly accepted in the business community.
             2829          Section 42. Section 61-2g-103 , which is renumbered from Section 61-2b-25 is


             2830      renumbered and amended to read:
             2831           [61-2b-25].     61-2g-103. Other law unaffected.
             2832          This chapter may not be considered to prohibit a person approved, licensed, certified, or
             2833      registered under this chapter from engaging in the practice of real estate appraising as a
             2834      professional corporation or a limited liability company in accordance with:
             2835          (1) Title 16, Chapter 11, Professional Corporation Act; or
             2836          (2) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act.
             2837          Section 43. Section 61-2g-201 , which is renumbered from Section 61-2b-6 is
             2838      renumbered and amended to read:
             2839     
Part 2. Division and Board

             2840           [61-2b-6].     61-2g-201. Duties and powers of division in general.
             2841          (1) The division shall administer and enforce this chapter.
             2842          [(1)] (2) The division has the following powers and duties [listed in this Subsection
             2843      (1).]:
             2844          (a) The division shall:
             2845          (i) receive an application for licensing, certification, or registration;
             2846          (ii) establish appropriate administrative procedures for the processing of an application
             2847      for licensure, certification, or registration;
             2848          (iii) issue a license or certification to a qualified applicant pursuant to this chapter; and
             2849          (iv) register an individual who applies and qualifies for registration as a trainee under
             2850      this chapter.
             2851          [(b) (i) The division shall require an individual to register with the division as a trainee
             2852      before the individual acts in the capacity of a trainee earning experience for licensure.]
             2853          [(ii) Subject to Subsection (4), the board shall adopt rules in accordance with Title
             2854      63G, Chapter 3, Utah Administrative Rulemaking Act, for:]
             2855          [(A) the trainee registration required by this Subsection (1)(b); and]
             2856          [(B) renewal of the trainee registration required by this Subsection (1)(b).]
             2857          [(c)] (b) The division shall hold public hearings under the direction of the board.


             2858          [(d)] (c) The division may:
             2859          (i) solicit bids and enter into contracts with one or more educational testing services or
             2860      organizations for the preparation of a bank of questions and answers; and
             2861          (ii) administer or contract for the administration of licensing and certification
             2862      examinations as may be required to carry out the division's responsibilities under this chapter.
             2863          [(e)] (d) The division shall provide administrative assistance to the board by providing
             2864      to the board the facilities, equipment, supplies, and personnel that are required to enable the
             2865      board to carry out the board's responsibilities under this chapter.
             2866          [(f)] (e) The division shall assist the board in improving the quality of the continuing
             2867      education available to a person licensed, certified, or registered under this chapter.
             2868          [(g)] (f) The division shall assist the board with respect to the proper interpretation or
             2869      explanation of the Uniform Standards of Professional Appraisal Practice as required by Section
             2870      [ 61-2b-27 ] 61-2g-403 when an interpretation or explanation becomes necessary in the
             2871      enforcement of this chapter.
             2872          [(h) The division shall establish fees in accordance with Section 63J-1-504 :]
             2873          [(i) for processing:]
             2874          [(A) an application for licensing, certification, or registration; and]
             2875          [(B) approval of an expert witness; and]
             2876          [(ii) for any other function required or permitted by this chapter.]
             2877          [(i) If a person pays a fee or costs to the division with a negotiable instrument and the
             2878      negotiable instrument is not honored for payment:]
             2879          [(i) the transaction for which the payment is submitted is voidable by the division;]
             2880          [(ii) the division may reverse the transaction if payment of the applicable fee or costs is
             2881      not received in full; and]
             2882          [(iii) the person's license, certification, or registration is automatically suspended:]
             2883          [(A) beginning the day on which the payment is due; and]
             2884          [(B) ending the day on which payment is made in full.]
             2885          [(j) The division may:]


             2886          [(i) investigate a complaint against:]
             2887          [(A) a person licensed, certified, or registered under this chapter; or]
             2888          [(B) a person required to be licensed, certified, or registered under this chapter;]
             2889          [(ii) subpoena a witness;]
             2890          [(iii) subpoena the production of a book, paper, document, record, contract, or
             2891      evidence;]
             2892          [(iv) administer an oath; and]
             2893          [(v) take testimony and receive evidence concerning a matter within the division's
             2894      jurisdiction.]
             2895          [(k)] (g) The division may:
             2896          (i) promote research and conduct studies relating to the profession of real estate
             2897      appraising; and
             2898          (ii) sponsor real estate appraisal educational activities.
             2899          [(l)] (h) The division shall adopt, with the concurrence of the board, rules for the
             2900      administration of this chapter pursuant to Title 63G, Chapter 3, Utah Administrative
             2901      Rulemaking Act, that are not inconsistent with this chapter or the constitution and laws of this
             2902      state or of the United States.
             2903          [(m)] (i) The division shall employ an appropriate staff to investigate allegations that a
             2904      person required to be licensed, certified, or registered under this chapter fails to comply with
             2905      this chapter.
             2906          [(n)] (j) The division may employ other professional, clerical, and technical staff as
             2907      may be necessary to properly administer the work of the division under this chapter.
             2908          [(o)] (k) (i) Upon request, the division shall make available, either directly or through a
             2909      [third party] third-party, a list of the names and addresses of the persons licensed, registered, or
             2910      certified by the division under this chapter.
             2911          (ii) A person who requests a list under this Subsection [(1)(o)] (2)(k) shall pay the costs
             2912      incurred by the division to make the list available.
             2913          [(2) (a) The division shall approve an expert witness who is not otherwise licensed or


             2914      certified under this chapter to appear in an administrative or judicial tax proceeding to provide
             2915      evidence related to the valuation of real property that is assessed by the State Tax Commission,
             2916      if the:]
             2917          [(i) approval is limited to a specific proceeding;]
             2918          [(ii) approval is valid until the proceeding becomes final;]
             2919          [(iii) applicant pays to the division an approval fee set by the division in accordance
             2920      with Section 63J-1-504 ;]
             2921          [(iv) applicant provides the applicant's name, address, occupation, and professional
             2922      credentials; and]
             2923          [(v) applicant provides a notarized statement that:]
             2924          [(A) the applicant is competent to render an appraisal and to testify as an expert
             2925      witness in the proceeding; and]
             2926          [(B) the appraisal and testimony to be offered shall be in accordance with the Uniform
             2927      Standards of Professional Appraisal Practice adopted by the board.]
             2928          [(b) Subsection (2)(a) applies to an administrative or judicial property tax proceeding
             2929      related to the valuation of real property that is assessed by the State Tax Commission.]
             2930          (3) (a) If the conditions of Subsection (3)(b) are met, the division is immune from any
             2931      civil action or criminal prosecution for initiating or assisting in a lawful investigation of an act
             2932      of, or participating in a disciplinary proceeding concerning:
             2933          (i) a person required to be licensed, certified, or registered pursuant to this chapter; or
             2934          (ii) a person approved as an expert witness pursuant to this chapter.
             2935          (b) This Subsection (3) applies if the division takes the action:
             2936          (i) without malicious intent; and
             2937          (ii) in the reasonable belief that the action is taken pursuant to the powers and duties
             2938      vested in the division under this chapter.
             2939          [(4) (a) An individual applying to register as a trainee under this chapter shall:]
             2940          [(i) submit a fingerprint card in a form acceptable to the division at the time of
             2941      applying for registration; and]


             2942          [(ii) consent to a criminal background check by:]
             2943          [(A) the Utah Bureau of Criminal Identification; and]
             2944          [(B) the Federal Bureau of Investigation.]
             2945          [(b) The division shall request the Department of Public Safety to complete a Federal
             2946      Bureau of Investigation criminal background check for an applicant through a national criminal
             2947      history system.]
             2948          [(c) The applicant shall pay the cost of:]
             2949          [(i) the fingerprinting required by this section; and]
             2950          [(ii) the criminal background check required by this section.]
             2951          [(d) (i) A registration as a trainee under this chapter is conditional pending completion
             2952      of the criminal background check required by this Subsection (4).]
             2953          [(ii) A registration is immediately and automatically revoked if a criminal background
             2954      check discloses that the applicant fails to accurately disclose a criminal history involving:]
             2955          [(A) the appraisal industry;]
             2956          [(B) fraud;]
             2957          [(C) misrepresentation; or]
             2958          [(D) deceit.]
             2959          [(iii) If a criminal background check discloses that an applicant fails to accurately
             2960      disclose a criminal history other than one described in Subsection (4)(d)(ii), the division:]
             2961          [(A) shall review the application; and]
             2962          [(B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
             2963      Utah Administrative Rulemaking Act, may:]
             2964          [(I) place one or more conditions on a registration;]
             2965          [(II) place one or more restrictions on a registration;]
             2966          [(III) revoke a registration; or]
             2967          [(IV) refer the application to the board for a decision.]
             2968          [(iv) An individual whose conditional registration is automatically revoked under
             2969      Subsection (4)(d)(ii) or whose registration is conditioned, restricted, or revoked under


             2970      Subsection (4)(d)(iii) may appeal the action in a hearing conducted by the board:]
             2971          [(A) after the action is taken; and]
             2972          [(B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.]
             2973          [(v) The board may delegate to the division or an administrative law judge the
             2974      authority to conduct a hearing described in Subsection (4)(d)(iv).]
             2975          [(vi) Relief from an automatic revocation under Subsection (4)(d)(ii) may be granted
             2976      only if:]
             2977          [(A) the criminal history upon which the division bases the revocation:]
             2978          [(I) did not occur; or]
             2979          [(II) is the criminal history of another person;]
             2980          [(B) (I) the revocation is based on a failure to accurately disclose a criminal history;
             2981      and]
             2982          [(II) the applicant has a reasonable good faith belief at the time of application that there
             2983      was no criminal history to be disclosed; or]
             2984          [(C) the division fails to follow the prescribed procedure for the revocation.]
             2985          [(e) If a registration is revoked or a revocation is upheld after a hearing described in
             2986      Subsection (4)(d)(iv), the individual may not apply for a new registration for a period of 12
             2987      months after the day on which the registration is revoked.]
             2988          [(f) The board may delegate to the division the authority to make a decision on whether
             2989      relief from a revocation should be granted.]
             2990          [(g) Money paid by an applicant for the cost of the criminal background check is
             2991      nonlapsing.]
             2992          Section 44. Section 61-2g-202 , which is renumbered from Section 61-2b-37 is
             2993      renumbered and amended to read:
             2994           [61-2b-37].     61-2g-202. Division service fees -- Federal registry fees.
             2995          (1) The division, with the concurrence of the board, shall establish and collect fees in
             2996      accordance with Section 63J-1-504 for its services under this chapter.
             2997          (2) The division shall collect the annual registry fee established by the Federal


             2998      Financial Institutions Examinations Council from those certificate holders who seek to perform
             2999      appraisals in federally related transactions. The division shall transmit the fees to the federal
             3000      Appraisal Subcommittee at least annually.
             3001          (3) If a person pays a fee or costs to the division with a negotiable instrument or any
             3002      other payment method that is not honored:
             3003          (a) the transaction for which the payment is submitted is voidable by the division;
             3004          (b) the division may reverse the transaction if payment of the applicable fee or costs is
             3005      not received in full; and
             3006          (c) the person's license, certification, or registration is automatically suspended:
             3007          (i) beginning the day on which the payment is due; and
             3008          (ii) ending the day on which payment is made in full.
             3009          Section 45. Section 61-2g-203 , which is renumbered from Section 61-2b-38 is
             3010      renumbered and amended to read:
             3011           [61-2b-38].     61-2g-203. Division to publish roster of appraisers.
             3012          (1) The division shall prepare and issue at least once each calendar year a roster of
             3013      appraisers containing the information required by the Federal Financial Institutions
             3014      Examination Council. The division shall transmit the roster to the Federal Financial
             3015      Institutions Examinations Council at least annually.
             3016          (2) The division may, upon payment of a fee established by the division in accordance
             3017      with Section 63J-1-504 , issue to a person a verified history of a person:
             3018          (a) licensed, certified, or registered under this chapter; or
             3019          (b) previously registered, licensed, or certified under this chapter.
             3020          Section 46. Section 61-2g-204 , which is renumbered from Section 61-2b-7 is
             3021      renumbered and amended to read:
             3022           [61-2b-7].     61-2g-204. Real Estate Appraiser Licensing and Certification
             3023      Board.
             3024          (1) (a) There is established a Real Estate Appraiser Licensing and Certification Board
             3025      [which shall consist] that consists of five regular members as follows:


             3026          (i) one state-licensed or state-certified appraiser who may be either a residential or
             3027      general licensee or certificate holder;
             3028          (ii) one state-certified residential appraiser;
             3029          (iii) one state-certified general appraiser;
             3030          (iv) one member who is certified as either a state-certified residential appraiser or a
             3031      state-certified general appraiser; and
             3032          (v) one member of the general public.
             3033          (b) A state-licensed or state-certified appraiser may be appointed as an alternate
             3034      member of the board.
             3035          (c) The governor shall appoint all members of the board with the consent of the Senate.
             3036          (2) (a) Except as required by Subsection (2)(b), as terms of current board members
             3037      expire, the governor shall appoint each new member or reappointed member to a four-year
             3038      term beginning on July 1.
             3039          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
             3040      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             3041      board members are staggered so that approximately half of the board is appointed every two
             3042      years.
             3043          (c) Upon the expiration of a member's term, a member of the board shall continue to
             3044      hold office until the appointment and qualification of the member's successor.
             3045          (d) A person may not serve as a member of the board for more than two consecutive
             3046      terms.
             3047          (3) (a) When a vacancy occurs in the membership for any reason, the replacement shall
             3048      be appointed for the unexpired term.
             3049          (b) The governor may remove a [board] member for cause.
             3050          (4) The public member of the board may not be licensed or certified under this chapter.
             3051          (5) The board shall meet at least quarterly to conduct its business. [Public notice shall
             3052      be given for all board meetings.] The division shall give public notice of a board meeting.
             3053          (6) The members of the board shall elect a chair annually from among the members to


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