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First Substitute H.B. 91

Representative Gage Froerer proposes the following substitute bill:


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


             57      Other Special Clauses:
             58          None
             59      Utah Code Sections Affected:
             60      AMENDS:
             61          7-5-1, as last amended by Laws of Utah 2003, Chapter 301
             62          13-21-2, as last amended by Laws of Utah 2008, Chapter 250
             63          16-11-2, as last amended by Laws of Utah 2010, Chapter 379
             64          17-17-2, as last amended by Laws of Utah 2010, Chapter 131
             65          31A-2-402, as last amended by Laws of Utah 2010, Chapter 379
             66          31A-23a-402, as last amended by Laws of Utah 2008, Chapter 382
             67          48-2c-1502, as last amended by Laws of Utah 2010, Chapter 379
             68          53C-4-103, as enacted by Laws of Utah 2008, Chapter 203
             69          57-11-16, as last amended by Laws of Utah 2009, Chapter 352
             70          59-1-404, as last amended by Laws of Utah 2008, Chapter 382
             71          59-2-701, as last amended by Laws of Utah 2001, Chapter 214
             72          61-2-201, as renumbered and amended by Laws of Utah 2010, Chapter 379
             73          61-2c-102, as last amended by Laws of Utah 2010, Chapters 184, 379 and last amended
             74      by Coordination Clause, Laws of Utah 2010, Chapter 379
             75          61-2c-103, as last amended by Laws of Utah 2010, Chapter 379
             76          61-2c-202, as last amended by Laws of Utah 2010, Chapter 379
             77          61-2c-203, as last amended by Laws of Utah 2010, Chapter 379
             78          61-2c-205, as last amended by Laws of Utah 2010, Chapter 379
             79          61-2c-301, as last amended by Laws of Utah 2010, Chapters 184 and 379
             80          61-2c-302, as last amended by Laws of Utah 2010, Chapter 379
             81          61-2c-402, as last amended by Laws of Utah 2010, Chapter 379
             82          61-2c-501.5, as enacted by Laws of Utah 2010, Chapter 379
             83          61-2c-507, as last amended by Laws of Utah 2010, Chapter 379
             84          61-2e-102, as enacted by Laws of Utah 2009, Chapter 269
             85          61-2e-103, as enacted by Laws of Utah 2009, Chapter 269
             86          61-2e-202, as enacted by Laws of Utah 2009, Chapter 269
             87          61-2e-203, as enacted by Laws of Utah 2009, Chapter 269


             88          61-2e-204, as enacted by Laws of Utah 2009, Chapter 269
             89          61-2e-301, as enacted by Laws of Utah 2009, Chapter 269
             90          61-2e-302, as enacted by Laws of Utah 2009, Chapter 269
             91          61-2e-307, as enacted by Laws of Utah 2009, Chapter 269
             92          61-2e-401, as enacted by Laws of Utah 2009, Chapter 269
             93          61-2e-402, as enacted by Laws of Utah 2009, Chapter 269
             94          61-2f-102, as last amended by Laws of Utah 2010, Chapter 184 and renumbered and
             95      amended by Laws of Utah 2010, Chapter 379 and last amended by Coordination
             96      Clause, Laws of Utah 2010, Chapter 379
             97          61-2f-105, as enacted by Laws of Utah 2010, Chapter 379
             98          61-2f-202, as last amended by Laws of Utah 2010, Chapter 184 and renumbered and
             99      amended by Laws of Utah 2010, Chapter 379
             100          61-2f-203, as renumbered and amended by Laws of Utah 2010, Chapter 379
             101          61-2f-204, as renumbered and amended by Laws of Utah 2010, Chapter 379
             102          61-2f-206, as enacted by Laws of Utah 2010, Chapter 379
             103          61-2f-301, as renumbered and amended by Laws of Utah 2010, Chapter 379
             104          61-2f-401, as last amended by Laws of Utah 2010, Chapter 184 and renumbered and
             105      amended by Laws of Utah 2010, Chapter 379
             106          63A-5-220, as last amended by Laws of Utah 2010, Chapter 278
             107          63A-5-401, as enacted by Laws of Utah 2008, Chapter 203
             108          70D-1-102, as renumbered and amended by Laws of Utah 2009, Chapter 72
             109          72-5-117, as enacted by Laws of Utah 2008, Chapter 203
             110          79-2-403, as renumbered and amended by Laws of Utah 2009, Chapter 344
             111      ENACTS:
             112          61-2g-302, Utah Code Annotated 1953
             113          61-2g-303, Utah Code Annotated 1953
             114      RENUMBERS AND AMENDS:
             115          61-2g-101, (Renumbered from 61-2b-1, as last amended by Laws of Utah 1999,
             116      Chapter 117)
             117          61-2g-102, (Renumbered from 61-2b-2, as last amended by Laws of Utah 2010,
             118      Chapter 379)


             119          61-2g-103, (Renumbered from 61-2b-25, as last amended by Laws of Utah 2010,
             120      Chapter 379)
             121          61-2g-201, (Renumbered from 61-2b-6, as last amended by Laws of Utah 2010,
             122      Chapter 379)
             123          61-2g-202, (Renumbered from 61-2b-37, as last amended by Laws of Utah 2009,
             124      Chapter 183)
             125          61-2g-203, (Renumbered from 61-2b-38, as last amended by Laws of Utah 2005,
             126      Chapter 199)
             127          61-2g-204, (Renumbered from 61-2b-7, as last amended by Laws of Utah 2010,
             128      Chapter 286)
             129          61-2g-205, (Renumbered from 61-2b-8, as last amended by Laws of Utah 2010,
             130      Chapter 379)
             131          61-2g-301, (Renumbered from 61-2b-3, as last amended by Laws of Utah 2010,
             132      Chapter 379)
             133          61-2g-304, (Renumbered from 61-2b-18, as last amended by Laws of Utah 2010,
             134      Chapter 379)
             135          61-2g-305, (Renumbered from 61-2b-19, as last amended by Laws of Utah 2010,
             136      Chapter 379)
             137          61-2g-306, (Renumbered from 61-2b-20, as last amended by Laws of Utah 2010,
             138      Chapter 379)
             139          61-2g-307, (Renumbered from 61-2b-40, as last amended by Laws of Utah 2010,
             140      Chapter 379)
             141          61-2g-308, (Renumbered from 61-2b-22, as last amended by Laws of Utah 2008,
             142      Chapters 382 and 387)
             143          61-2g-309, (Renumbered from 61-2b-21, as last amended by Laws of Utah 2008,
             144      Chapters 382 and 387)
             145          61-2g-310, (Renumbered from 61-2b-23, as last amended by Laws of Utah 1999,
             146      Chapter 117)
             147          61-2g-311, (Renumbered from 61-2b-10, as last amended by Laws of Utah 2010,
             148      Chapter 379)
             149          61-2g-312, (Renumbered from 61-2b-13, as last amended by Laws of Utah 2001,


             150      Chapter 214)
             151          61-2g-313, (Renumbered from 61-2b-14, as last amended by Laws of Utah 2010,
             152      Chapter 379)
             153          61-2g-314, (Renumbered from 61-2b-15, as last amended by Laws of Utah 2010,
             154      Chapter 379)
             155          61-2g-315, (Renumbered from 61-2b-24, as last amended by Laws of Utah 2008,
             156      Chapter 387)
             157          61-2g-401, (Renumbered from 61-2b-17, as last amended by Laws of Utah 2010,
             158      Chapter 379)
             159          61-2g-402, (Renumbered from 61-2b-26, as last amended by Laws of Utah 2008,
             160      Chapter 387)
             161          61-2g-403, (Renumbered from 61-2b-27, as last amended by Laws of Utah 2009,
             162      Chapter 352)
             163          61-2g-404, (Renumbered from 61-2b-32, as last amended by Laws of Utah 2010,
             164      Chapter 379)
             165          61-2g-405, (Renumbered from 61-2b-34, as last amended by Laws of Utah 2005,
             166      Chapter 199)
             167          61-2g-406, (Renumbered from 61-2b-36, as last amended by Laws of Utah 2010,
             168      Chapter 379)
             169          61-2g-407, (Renumbered from 61-2b-41, as enacted by Laws of Utah 1996, Chapter
             170      131)
             171          61-2g-501, (Renumbered from 61-2b-28, as last amended by Laws of Utah 2010,
             172      Chapter 379)
             173          61-2g-502, (Renumbered from 61-2b-29, as last amended by Laws of Utah 2010,
             174      Chapter 379)
             175          61-2g-503, (Renumbered from 61-2b-30.5, as last amended by Laws of Utah 2010,
             176      Chapter 379)
             177          61-2g-504, (Renumbered from 61-2b-31, as last amended by Laws of Utah 2008,
             178      Chapters 3 and 387)
             179          61-2g-505, (Renumbered from 61-2b-33, as last amended by Laws of Utah 2010,
             180      Chapter 379)


             181      REPEALS:
             182          57-11-19, as enacted by Laws of Utah 1973, Chapter 158
             183          61-2b-5, as enacted by Laws of Utah 1990, Chapter 212
             184          61-2b-9, as last amended by Laws of Utah 2005, Chapter 199
             185          61-2b-30, as last amended by Laws of Utah 2008, Chapter 382
             186          61-2b-39, as last amended by Laws of Utah 2010, Chapter 379
             187     
             188      Be it enacted by the Legislature of the state of Utah:
             189          Section 1. Section 7-5-1 is amended to read:
             190           7-5-1. Definitions -- Allowable trust companies -- Exceptions.
             191          (1) As used in this chapter:
             192          (a) "Business trust" means an entity engaged in a trade or business that is created by a
             193      declaration of trust that transfers property to trustees, to be held and managed by them for the
             194      benefit of persons holding certificates representing the beneficial interest in the trust estate and
             195      assets.
             196          (b) "Trust business" means, except as provided in Subsection (1)(c), a business in
             197      which one acts in any agency or fiduciary capacity, including that of personal representative,
             198      executor, administrator, conservator, guardian, assignee, receiver, depositary, or trustee under
             199      appointment as trustee for any purpose permitted by law, including the definition of "trust" set
             200      forth in Subsection 75-1-201 [(53)](55).
             201          (c) "Trust business" does not include the following means of holding [funds] money,
             202      assets, or other property:
             203          (i) [funds] money held in a client trust account by an attorney authorized to practice
             204      law in this state;
             205          (ii) [funds] money held in connection with the purchase or sale of real estate by a
             206      person [authorized to act as a real estate broker in this state] licensed as a principal broker in
             207      accordance with Title 61, Chapter 2f, Real Estate Licensing and Practices Act;
             208          (iii) [funds] money or other assets held in escrow by a person authorized by the
             209      department in accordance with Chapter 22, Regulation of Independent Escrow Agents, or by
             210      the Utah Insurance Department to act as an escrow agent in this state;
             211          (iv) [funds] money held by a homeowners' association or similar organization to pay


             212      maintenance and other related costs for commonly owned property;
             213          (v) [funds] money held in connection with the collection of debts or payments on loans
             214      by a person acting solely as the agent or representative or otherwise at the sole direction of the
             215      person to which the debt or payment is owed, including [funds] money held by an escrow agent
             216      for payment of taxes or insurance;
             217          (vi) [funds] money and other assets held in trust on an occasional or isolated basis by a
             218      person who does not represent that [he] the person is engaged in the trust business in Utah;
             219          (vii) [funds] money or other assets found by a court to be held in an implied, resulting,
             220      or constructive trust;
             221          (viii) [funds] money or other assets held by a court appointed conservator, guardian,
             222      receiver, trustee, or other fiduciary if:
             223          (A) the conservator, receiver, guardian, trustee, or other fiduciary is responsible to the
             224      court in the same manner as a personal representative under Title 75, Chapter 3, Part 5,
             225      Supervised Administration, or as a receiver under Rule 66, Utah Rules of Civil Procedure;
             226          (B) the conservator, trustee, or other fiduciary is a certified public accountant or has
             227      qualified for and received a designation as a certified financial planner, chartered financial
             228      consultant, certified financial analyst, or similar designation suitable to the court, that
             229      evidences the conservator's, trustee's, or other fiduciary's professional competence to manage
             230      financial matters;
             231          (C) no trust company is willing or eligible to serve as conservator, guardian, trustee, or
             232      receiver after notice has been given pursuant to Section 75-1-401 to all trust companies doing
             233      business in this state, including a statement of the value of the assets to be managed[. That],
             234      that notice need not be provided, however, if a trust company has been employed by the
             235      fiduciary to manage the assets; and
             236          (D) in the event guardianship services are needed, the person seeking appointment as a
             237      guardian under this Subsection (1) is a specialized care professional, as that term is defined in
             238      Section 75-5-311 , or a business or state agency that employs the services of one of those
             239      professionals for the purpose of caring for the incapacitated person, so long as the specialized
             240      care professional, business, or state agency does not:
             241          (I) profit financially or otherwise from, or receive compensation for acting in that
             242      capacity, except for the direct costs of providing guardianship or conservatorship services; or


             243          (II) otherwise have a conflict of interest in providing those services;
             244          (ix) [funds] money or other assets held by a credit services organization operating in
             245      compliance with Title 13, Chapter 21, Credit Services Organizations Act;
             246          (x) [funds] money, securities, or other assets held in a customer account in connection
             247      with the purchase or sale of securities by a regulated securities broker, dealer, or transfer agent;
             248      or
             249          (xi) [funds] money, assets, and other property held in a business trust for the benefit of
             250      holders of certificates of beneficial interest if the fiduciary activities of the business trust are
             251      merely incidental to conducting business in the business trust form.
             252          (d) "Trust company" means an institution authorized to engage in the trust business
             253      under this chapter. Only the following may be a trust company:
             254          (i) a Utah depository institution or its wholly owned subsidiary;
             255          (ii) an out-of-state depository institution authorized to engage in business as a
             256      depository institution in Utah or its wholly owned subsidiary;
             257          (iii) a corporation, including a credit union service organization, owned entirely by one
             258      or more federally insured depository institutions as defined in Subsection 7-1-103 (8);
             259          (iv) a direct or indirect subsidiary of a depository institution holding company that also
             260      has a direct or indirect subsidiary authorized to engage in business as a depository institution in
             261      Utah; and
             262          (v) any other corporation continuously and lawfully engaged in the trust business in
             263      this state since before July 1, 1981.
             264          (2) Only a trust company may engage in the trust business in this state.
             265          (3) The requirements of this chapter do not apply to:
             266          (a) an institution authorized to engage in a trust business in another state that is
             267      engaged in trust activities in this state solely to fulfill its duties as a trustee of a trust created
             268      and administered in another state;
             269          (b) a national bank, federal savings bank, federal savings and loan association, or
             270      federal credit union authorized to engage in business as a depository institution in Utah, or any
             271      wholly owned subsidiary of any of these, to the extent the institution is authorized by its
             272      primary federal regulator to engage in the trust business in this state; or
             273          (c) a state agency that is otherwise authorized by statute to act as a conservator,


             274      receiver, guardian, trustee, or in any other fiduciary capacity.
             275          Section 2. Section 13-21-2 is amended to read:
             276           13-21-2. Definitions -- Exemptions.
             277          As used in this chapter:
             278          (1) "Buyer" means an individual who is solicited to purchase or who purchases the
             279      services of a credit services organization.
             280          (2) "Credit reporting agency" means a person who, for a monetary fee, dues, or on a
             281      cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling
             282      or evaluating consumer credit information or other information on consumers for the purpose
             283      of furnishing consumer reports to third persons.
             284          (3) (a) "Credit services organization" means a person who represents that the person or
             285      an employee is a debt professional or credit counselor, or, with respect to the extension of
             286      credit by others, sells, provides, or performs, or represents that the person can or will sell,
             287      provide, or perform, in return for the payment of money or other valuable consideration any of
             288      the following services:
             289          (i) improving a buyer's credit record, history, or rating;
             290          (ii) providing advice, assistance, instruction, or instructional materials to a buyer with
             291      regard to Subsection (3)(a)(i); or
             292          (iii) debt reduction or debt management plans.
             293          (b) "Credit services organization" does not include:
             294          (i) a person authorized to make loans or extensions of credit under the laws of this state
             295      or the United States who is subject to regulation and supervision by this state or the United
             296      States and who derives at least 35% of the person's income from making loans and extensions
             297      of credit;
             298          (ii) a depository institution:
             299          (A) as defined in Section 7-1-103 ; or
             300          (B) that is regulated or supervised by the Federal Deposit Insurance Corporation or the
             301      National Credit Union Administration;
             302          (iii) a person licensed as a [real estate broker by this state] principal broker under Title
             303      61, Chapter 2f, Real Estate Licensing and Practices Act, if the person is acting within the
             304      course and scope of that license;


             305          (iv) a person licensed to practice law in this state if:
             306          (A) the person renders the services described in Subsection (3)(a) within the course and
             307      scope of the person's practice as an attorney; and
             308          (B) the services described in Subsection (3)(a) are incidental to the person's practice as
             309      an attorney;
             310          (v) a broker-dealer registered with the Securities and Exchange Commission or the
             311      Commodity Futures Trading Commission if the broker-dealer is acting within the course and
             312      scope of that regulation;
             313          (vi) a credit reporting agency if the services described in Subsection (3)(a) are
             314      incidental to the credit reporting agency's services; or
             315          (vii) a person who provides debt-management services and is required to be registered
             316      under Title 13, Chapter 42, Uniform Debt-Management Services Act.
             317          (4) "Extension of credit" means the right to defer payment of debt or to incur debt and
             318      defer its payment, offered or granted primarily for personal, family, or household purposes.
             319          Section 3. Section 16-11-2 is amended to read:
             320           16-11-2. Definitions.
             321          As used in this chapter:
             322          (1) "Filed" means the division has received and approved, as to form, a document
             323      submitted under [the provisions of] this chapter, and has marked on the face of the document a
             324      stamp or seal indicating the time of day and date of approval, the name of the division, the
             325      division director's signature and division seal, or facsimiles of the signature or seal.
             326          (2) "Professional corporation" means a corporation organized under this chapter.
             327          (3) "Professional service" means the personal service rendered by:
             328          (a) a physician, surgeon, or doctor of medicine holding a license under Title 58,
             329      Chapter 67, Utah Medical Practice Act, and any subsequent laws regulating the practice of
             330      medicine;
             331          (b) a doctor of dentistry holding a license under Title 58, Chapter 69, Dentist and
             332      Dental Hygienist Practice Act, and any subsequent laws regulating the practice of dentistry;
             333          (c) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
             334      Utah Osteopathic Medical Practice Act, and any subsequent laws regulating the practice of
             335      osteopathy;


             336          (d) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
             337      Practice Act, and any subsequent laws regulating the practice of [chiropractic] chiropractics;
             338          (e) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
             339      Physician Licensing Act, and any subsequent laws regulating the practice of podiatry;
             340          (f) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry
             341      Practice Act, and any subsequent laws regulating the practice of optometry;
             342          (g) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice Act,
             343      and any subsequent laws regulating the practice of veterinary medicine;
             344          (h) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
             345      and any subsequent laws regulating the practice of architecture;
             346          (i) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
             347      Accountant Licensing Act, and any subsequent laws regulating the practice of public
             348      accounting;
             349          (j) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician
             350      Practice Act, and any subsequent laws regulating the practice of naturopathy;
             351          (k) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice Act,
             352      and any subsequent laws regulating the practice of pharmacy;
             353          (l) an attorney granted the authority to practice law by:
             354          (i) the Utah Supreme Court; or
             355          (ii) the Supreme Court, other court, agency, instrumentality, or regulating board that
             356      licenses or regulates the authority to practice law in any state or territory of the United States
             357      other than Utah;
             358          (m) a professional engineer registered under Title 58, Chapter 22, Professional
             359      Engineers and Professional Land Surveyors Licensing Act;
             360          (n) a principal broker, associate broker, or sales agent holding a license under Title 61,
             361      Chapter 2f, Real Estate Licensing and Practices Act, and any subsequent laws regulating the
             362      selling, exchanging, purchasing, renting, or leasing of real estate;
             363          (o) a psychologist holding a license under Title 58, Chapter 61, Psychologist Licensing
             364      Act, and any subsequent laws regulating the practice of psychology;
             365          (p) a clinical or certified social worker holding a license under Title 58, Chapter 60,
             366      Part 2, Social Worker Licensing Act, and any subsequent laws regulating the practice of social


             367      work;
             368          (q) a physical therapist holding a license under Title 58, Chapter 24b, Physical Therapy
             369      Practice Act, and any subsequent laws regulating the practice of physical therapy;
             370          (r) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
             371      Chapter 44a, Nurse Midwife Practice Act;
             372          (s) a landscape architect licensed under Title 58, Chapter 53, Landscape Architects
             373      Licensing Act, and any subsequent laws regulating landscape architects; or
             374          (t) an individual licensed, certified, or registered under Title 61, Chapter [2b] 2g, Real
             375      Estate Appraiser Licensing and Certification Act, and any subsequent laws regulating the
             376      practice of appraising real estate.
             377          (4) "Regulating board" means the board that is charged with the licensing and
             378      regulation of the practice of the profession which the professional corporation is organized to
             379      render. The definitions of Title 16, Chapter 10a, Utah Revised Business Corporation Act,
             380      apply to this chapter unless the context clearly indicates that a different meaning is intended.
             381          Section 4. Section 17-17-2 is amended to read:
             382           17-17-2. Assessor to be state qualified -- Vacancy -- Filling vacancy.
             383          (1) (a) Except as provided in Subsection (1)(b), in addition to the requirements of
             384      Section 17-16-1 , any person elected to the office of county assessor after November 1, 1993,
             385      shall be a state-licensed or state-certified appraiser as defined in Title 61, Chapter [2b] 2g, Real
             386      Estate Appraiser Licensing and Certification Act, [prior to] before the expiration of 36 months
             387      from the day on which [his] the person's term of office begins.
             388          (b) Notwithstanding Subsection (1)(a), a county assessor of a county of the first
             389      through third class shall be a state-licensed or state-certified appraiser as defined in Title 61,
             390      Chapter [2b] 2g, Real Estate Appraiser Licensing and Certification Act, [prior to] before filing
             391      for office if the county assessor is:
             392          (i) elected to the office of county assessor on or after January 1, 2010; or
             393          (ii) selected to fill the vacancy of a county assessor as described in Subsection (2).
             394          (2) (a) If an assessor fails to meet the requirement of this section, the assessor's office
             395      is automatically vacant.
             396          (b) (i) (A) If a vacancy occurs under this section, the county legislative body shall fill
             397      the vacancy in the manner provided in Sections 17-53-104 and 20A-1-508 .


             398          (B) A person selected to fill the vacancy shall be a state-licensed or state-certified
             399      appraiser before assuming the office of county assessor.
             400          (ii) If a state-licensed or state-certified appraiser cannot be found to fill a vacancy
             401      which resulted from the requirements of this section, the county legislative body may contract
             402      with a state-licensed or state-certified appraiser from outside the county to fill the remainder of
             403      the term in the office of county assessor.
             404          Section 5. Section 31A-2-402 is amended to read:
             405           31A-2-402. Definitions.
             406          As used in this part:
             407          (1) "Commission" means the Title and Escrow Commission created in Section
             408      31A-2-403 .
             409          (2) "Concurrence" means the entities given a concurring role must jointly agree for the
             410      action to be taken.
             411          (3) "Dual licensed title licensee" means a title licensee who holds:
             412          (a) a producer license as a title licensee; and
             413          (b) a license or certificate under:
             414          (i) Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act;
             415          [(i)] (ii) Title 61, Chapter 2f, Real Estate Licensing and Practices Act; or
             416          [(ii)] (iii) Title 61, Chapter [2b] 2g, Real Estate Appraiser Licensing and Certification
             417      Act[; or].
             418          [(iii) Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act.]
             419          (4) "Real Estate Commission" means the Real Estate Commission created in Section
             420      61-2f-103 .
             421          (5) "Title licensee" means a person licensed under this title as:
             422          (a) an agency with a title insurance line of authority;
             423          (b) a producer with:
             424          (i) a general title insurance line of authority; or
             425          (ii) a specific category of authority for title insurance; or
             426          (c) a title insurance adjuster.
             427          Section 6. Section 31A-23a-402 is amended to read:
             428           31A-23a-402. Unfair marketing practices -- Communication -- Inducement --


             429      Unfair discrimination -- Coercion or intimidation -- Restriction on choice.
             430          (1) (a) (i) Any of the following may not make or cause to be made any communication
             431      that contains false or misleading information, relating to an insurance product or contract, any
             432      insurer, or any licensee under this title, including information that is false or misleading
             433      because it is incomplete:
             434          (A) a person who is or should be licensed under this title;
             435          (B) an employee or producer of a person described in Subsection (1)(a)(i)(A);
             436          (C) a person whose primary interest is as a competitor of a person licensed under this
             437      title; and
             438          (D) a person on behalf of any of the persons listed in this Subsection (1)(a)(i).
             439          (ii) As used in this Subsection (1), "false or misleading information" includes:
             440          (A) assuring the nonobligatory payment of future dividends or refunds of unused
             441      premiums in any specific or approximate amounts, but reporting fully and accurately past
             442      experience is not false or misleading information; and
             443          (B) with intent to deceive a person examining it:
             444          (I) filing a report;
             445          (II) making a false entry in a record; or
             446          (III) wilfully refraining from making a proper entry in a record.
             447          (iii) A licensee under this title may not:
             448          (A) use any business name, slogan, emblem, or related device that is misleading or
             449      likely to cause the insurer or other licensee to be mistaken for another insurer or other licensee
             450      already in business; or
             451          (B) use any advertisement or other insurance promotional material that would cause a
             452      reasonable person to mistakenly believe that a state or federal government agency:
             453          (I) is responsible for the insurance sales activities of the person;
             454          (II) stands behind the credit of the person;
             455          (III) guarantees any returns on insurance products of or sold by the person; or
             456          (IV) is a source of payment of any insurance obligation of or sold by the person.
             457          (iv) A person who is not an insurer may not assume or use any name that deceptively
             458      implies or suggests that person is an insurer.
             459          (v) A person other than persons licensed as health maintenance organizations under


             460      Chapter 8 may not use the term "Health Maintenance Organization" or "HMO" in referring to
             461      itself.
             462          (b) A licensee's violation creates a rebuttable presumption that the violation was also
             463      committed by the insurer if:
             464          (i) the licensee under this title distributes cards or documents, exhibits a sign, or
             465      publishes an advertisement that violates Subsection (1)(a), with reference to a particular
             466      insurer:
             467          (A) that the licensee represents; or
             468          (B) for whom the licensee processes claims; and
             469          (ii) the cards, documents, signs, or advertisements are supplied or approved by that
             470      insurer.
             471          (2) (a) (i) A licensee under this title, or an officer or employee of a licensee may not
             472      induce any person to enter into or continue an insurance contract or to terminate an existing
             473      insurance contract by offering benefits not specified in the policy to be issued or continued,
             474      including premium or commission rebates.
             475          (ii) An insurer may not make or knowingly allow any agreement of insurance that is
             476      not clearly expressed in the policy to be issued or renewed.
             477          (iii) This Subsection (2)(a) does not preclude:
             478          (A) an insurer from reducing premiums because of expense savings;
             479          (B) an insurer from providing to a policyholder or insured one or more incentives to
             480      participate in programs or activities designed to reduce claims or claim expenses;
             481          (C) the usual kinds of social courtesies not related to particular transactions; or
             482          (D) an insurer from receiving premiums under an installment payment plan.
             483          (iv) The commissioner may adopt rules in accordance with Title 63G, Chapter 3, Utah
             484      Administrative Rulemaking Act, to define what constitutes an incentive described in
             485      Subsection (2)(a)(iii)(B).
             486          (b) A licensee under this title may not absorb the tax under Section 31A-3-301 .
             487          (c) (i) A title insurer or producer or any officer or employee of either may not pay,
             488      allow, give, or offer to pay, allow, or give, directly or indirectly, as an inducement to obtaining
             489      any title insurance business:
             490          (A) any rebate, reduction, or abatement of any rate or charge made incident to the


             491      issuance of the title insurance;
             492          (B) any special favor or advantage not generally available to others; [or]
             493          (C) any money or other consideration, except if approved under Section 31A-2-405 ; or
             494          (D) material inducement.
             495          (ii) "Charge made incident to the issuance of the title insurance" includes escrow
             496      charges, and any other services that are prescribed in rule by the Title and Escrow Commission
             497      after consultation with the commissioner and subject to Section 31A-2-404 .
             498          (iii) An insured or any other person connected, directly or indirectly, with the
             499      transaction[, including a mortgage lender, real estate broker, builder, attorney, or any officer,
             500      employee, or agent of any of them,] may not knowingly receive or accept, directly or indirectly,
             501      any benefit referred to in Subsection (2)(c)(i)[.], including:
             502          (A) a person licensed under Title 61, Chapter 2c, Utah Residential Mortgage Practices
             503      and Licensing Act;
             504          (B) a person licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices
             505      Act;
             506          (C) a builder;
             507          (D) an attorney; or
             508          (E) an officer, employee, or agent of a person listed in this Subsection (2)(c)(iii).
             509          (3) (a) An insurer may not unfairly discriminate among policyholders by charging
             510      different premiums or by offering different terms of coverage, except on the basis of
             511      classifications related to the nature and the degree of the risk covered or the expenses involved.
             512          (b) Rates are not unfairly discriminatory if they are averaged broadly among persons
             513      insured under a group, blanket, or franchise policy, and the terms of those policies are not
             514      unfairly discriminatory merely because they are more favorable than in similar individual
             515      policies.
             516          (4) (a) This Subsection (4) applies to:
             517          (i) a person who is or should be licensed under this title;
             518          (ii) an employee of that licensee or person who should be licensed;
             519          (iii) a person whose primary interest is as a competitor of a person licensed under this
             520      title; and
             521          (iv) one acting on behalf of any person described in Subsections (4)(a)(i) through (iii).


             522          (b) A person described in Subsection (4)(a) may not commit or enter into any
             523      agreement to participate in any act of boycott, coercion, or intimidation that:
             524          (i) tends to produce:
             525          (A) an unreasonable restraint of the business of insurance; or
             526          (B) a monopoly in that business; or
             527          (ii) results in an applicant purchasing or replacing an insurance contract.
             528          (5) (a) (i) Subject to Subsection (5)(a)(ii), a person may not restrict in the choice of an
             529      insurer or licensee under this chapter, another person who is required to pay for insurance as a
             530      condition for the conclusion of a contract or other transaction or for the exercise of any right
             531      under a contract.
             532          (ii) A person requiring coverage may reserve the right to disapprove the insurer or the
             533      coverage selected on reasonable grounds.
             534          (b) The form of corporate organization of an insurer authorized to do business in this
             535      state is not a reasonable ground for disapproval, and the commissioner may by rule specify
             536      additional grounds that are not reasonable. This Subsection (5) does not bar an insurer from
             537      declining an application for insurance.
             538          (6) A person may not make any charge other than insurance premiums and premium
             539      financing charges for the protection of property or of a security interest in property, as a
             540      condition for obtaining, renewing, or continuing the financing of a purchase of the property or
             541      the lending of money on the security of an interest in the property.
             542          (7) (a) A licensee under this title may not refuse or fail to return promptly all indicia of
             543      agency to the principal on demand.
             544          (b) A licensee whose license is suspended, limited, or revoked under Section
             545      31A-2-308 , 31A-23a-111 , or 31A-23a-112 may not refuse or fail to return the license to the
             546      commissioner on demand.
             547          (8) (a) A person may not engage in any other unfair method of competition or any other
             548      unfair or deceptive act or practice in the business of insurance, as defined by the commissioner
             549      by rule, after a finding that they:
             550          (i) are misleading;
             551          (ii) are deceptive;
             552          (iii) are unfairly discriminatory;


             553          (iv) provide an unfair inducement; or
             554          (v) unreasonably restrain competition.
             555          (b) Notwithstanding Subsection (8)(a), for purpose of the title insurance industry, the
             556      Title and Escrow Commission shall make rules, subject to Section 31A-2-404 , that define any
             557      other unfair method of competition or any other unfair or deceptive act or practice after a
             558      finding that they:
             559          (i) are misleading;
             560          (ii) are deceptive;
             561          (iii) are unfairly discriminatory;
             562          (iv) provide an unfair inducement; or
             563          (v) unreasonably restrain competition.
             564          Section 7. Section 48-2c-1502 is amended to read:
             565           48-2c-1502. Definitions.
             566          As used in this part:
             567          (1) "Professional services company" means a limited liability company organized
             568      under this part to render professional services.
             569          (2) "Professional services" means the personal services rendered by:
             570          (a) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
             571      and any subsequent laws regulating the practice of architecture;
             572          (b) an attorney granted the authority to practice law by the:
             573          (i) Supreme Court of Utah; or
             574          (ii) the Supreme Court, other court, agency, instrumentality, or regulating board that
             575      licenses or regulates the authority to practice law in any state or territory of the United States
             576      other than Utah;
             577          (c) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
             578      Practice Act, and any subsequent laws regulating the practice of [chiropractic] chiropractics;
             579          (d) a doctor of dentistry holding a license under Title 58, Chapter 69, Dentist and
             580      Dental Hygienist Practice Act, and any subsequent laws, regulating the practice of dentistry;
             581          (e) a professional engineer registered under Title 58, Chapter 22, Professional
             582      Engineers and Professional Land Surveyors Licensing Act;
             583          (f) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician


             584      Practice Act, and any subsequent laws regulating the practice of naturopathy;
             585          (g) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
             586      Chapter 44a, Nurse Midwife Practice Act;
             587          (h) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry
             588      Practice Act, and any subsequent laws regulating the practice of optometry;
             589          (i) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
             590      Utah Osteopathic Medical Practice Act, and any subsequent laws regulating the practice of
             591      osteopathy;
             592          (j) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice Act,
             593      and any subsequent laws regulating the practice of pharmacy;
             594          (k) a physician, surgeon, or doctor of medicine holding a license under Title 58,
             595      Chapter 67, Utah Medical Practice Act, and any subsequent laws regulating the practice of
             596      medicine;
             597          (l) a physical therapist holding a license under Title 58, Chapter 24b, Physical Therapy
             598      Practice Act, and any subsequent laws regulating the practice of physical therapy;
             599          (m) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
             600      Physician Licensing Act, and any subsequent laws regulating the practice of podiatry;
             601          (n) a psychologist holding a license under Title 58, Chapter 61, Psychologist Licensing
             602      Act, and any subsequent laws regulating the practice of psychology;
             603          (o) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
             604      Accountant Licensing Act, and any subsequent laws regulating the practice of public
             605      accounting;
             606          (p) a principal broker, associate broker, or sales agent holding a license under Title 61,
             607      Chapter 2f, Real Estate Licensing and Practices Act, and any subsequent laws regulating the
             608      sale, exchange, purchase, rental, or leasing of real estate;
             609          (q) a clinical or certified social worker holding a license under Title 58, Chapter 60,
             610      Part 2, Social Worker Licensing Act, and any subsequent laws regulating the practice of social
             611      work;
             612          (r) a mental health therapist holding a license under Title 58, Chapter 60, Mental
             613      Health Professional Practice Act, and any subsequent laws regulating the practice of mental
             614      health therapy;


             615          (s) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice Act,
             616      and any subsequent laws regulating the practice of veterinary medicine; or
             617          (t) an individual licensed, certified, or registered under Title 61, Chapter [2b] 2g, Real
             618      Estate Appraiser Licensing and Certification Act, and any subsequent laws regulating the
             619      practice of appraising real estate.
             620          (3) "Regulating board" means the board or agency organized pursuant to state law that
             621      is charged with the licensing and regulation of the practice of the profession that a company is
             622      organized to render.
             623          Section 8. Section 53C-4-103 is amended to read:
             624           53C-4-103. Rulemaking for sale of real property -- Licensed or certified
             625      appraisers -- Exceptions.
             626          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if
             627      the administration buys, sells, or exchanges real property, the administration shall make rules
             628      to ensure that the value of the real property is congruent with the proposed price and other
             629      terms of the purchase, sale, or exchange.
             630          (2) The rules:
             631          (a) shall establish procedures for determining the value of the real property;
             632          (b) may provide that an appraisal, as defined under Section [ 61-2b-2 ] 61-2g-102 ,
             633      demonstrates the real property's value; and
             634          (c) may require that the appraisal be completed by a state-certified general appraiser, as
             635      defined under Section [ 61-2b-2 ] 61-2g-102 .
             636          (3) Subsection (1) does not apply to the purchase, sale, or exchange of real property, or
             637      to an interest in real property:
             638          (a) that is under a contract or other written agreement [prior to] before May 5, 2008; or
             639          (b) with a value of less than $100,000, as estimated by the state agency.
             640          Section 9. Section 57-11-16 is amended to read:
             641           57-11-16. Violations -- Duties of attorney general, county attorney, or district
             642      attorney.
             643          [(1) (a) This Subsection (1) applies to a person who willfully:]
             644          [(i) violates this chapter or a rule adopted under this chapter; or]
             645          [(ii) in an application for registration under this chapter or under the federal act, makes


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


             677          (c) (i) "Commercial information" means:
             678          (A) information of a commercial nature obtained from a property taxpayer regarding
             679      the property taxpayer's property; or
             680          (B) information derived from the information described in this Subsection (1)(c)(i).
             681          (ii) (A) "Commercial information" does not include information regarding a property
             682      taxpayer's property if the information is intended for public use.
             683          (B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             684      purposes of Subsection (1)(c)(ii)(A), the commission may by rule prescribe the circumstances
             685      under which information is intended for public use.
             686          (d) "Consultation service" [means a consultation service] is as defined in Section
             687      [ 61-2b-2 ] 61-2g-102 .
             688          (e) "Locally assessed property" means property that is assessed by a county assessor in
             689      accordance with Chapter 2, Part 3, County Assessment.
             690          (f) "Property taxpayer" means a person that:
             691          (i) is a property owner; or
             692          (ii) has in effect a contract with a property owner to:
             693          (A) make filings on behalf of the property owner;
             694          (B) process appeals on behalf of the property owner; or
             695          (C) pay a tax under Chapter 2, Property Tax Act, on the property owner's property.
             696          (g) "Property taxpayer's property" means property with respect to which a property
             697      taxpayer:
             698          (i) owns the property;
             699          (ii) makes filings relating to the property;
             700          (iii) processes appeals relating to the property; or
             701          (iv) pays a tax under Chapter 2, Property Tax Act, on the property.
             702          (h) "Protected commercial information" means commercial information that:
             703          (i) identifies a specific property taxpayer; or
             704          (ii) would reasonably lead to the identity of a specific property taxpayer.
             705          (2) An individual listed under Subsection 59-1-403 (1)(a) may not disclose commercial
             706      information:
             707          (a) obtained in the course of performing any duty that the individual listed under


             708      Subsection 59-1-403 (1)(a) performs under Chapter 2, Property Tax Act; or
             709          (b) relating to an action or proceeding:
             710          (i) with respect to a tax imposed on property in accordance with Chapter 2, Property
             711      Tax Act; and
             712          (ii) that is filed in accordance with:
             713          (A) this chapter;
             714          (B) Chapter 2, Property Tax Act; or
             715          (C) this chapter and Chapter 2, Property Tax Act.
             716          (3) (a) Notwithstanding Subsection (2) and subject to Subsection (3)(b), an individual
             717      listed under Subsection 59-1-403 (1)(a) may disclose the following information:
             718          (i) the assessed value of property;
             719          (ii) the tax rate imposed on property;
             720          (iii) a legal description of property;
             721          (iv) the physical description or characteristics of property, including a street address or
             722      parcel number for the property;
             723          (v) the square footage or acreage of property;
             724          (vi) the square footage of improvements on property;
             725          (vii) the name of a property taxpayer;
             726          (viii) the mailing address of a property taxpayer;
             727          (ix) the amount of a property tax:
             728          (A) assessed on property;
             729          (B) due on property;
             730          (C) collected on property;
             731          (D) abated on property; or
             732          (E) deferred on property;
             733          (x) the amount of the following relating to property taxes due on property:
             734          (A) interest;
             735          (B) costs; or
             736          (C) other charges;
             737          (xi) the tax status of property, including:
             738          (A) an exemption;


             739          (B) a property classification;
             740          (C) a bankruptcy filing; or
             741          (D) whether the property is the subject of an action or proceeding under this title;
             742          (xii) information relating to a tax sale of property; or
             743          (xiii) information relating to single-family residential property.
             744          (b) (i) Subject to Subsection (3)(b)(ii), a person may receive the information described
             745      in Subsection (3)(a) in written format.
             746          (ii) The following may charge a reasonable fee to cover the actual cost of providing the
             747      information described in Subsection (3)(a) in written format:
             748          (A) the commission;
             749          (B) a county;
             750          (C) a city; or
             751          (D) a town.
             752          (4) (a) Notwithstanding Subsection (2) and except as provided in Subsection (4)(c), an
             753      individual listed under Subsection 59-1-403 (1)(a) shall disclose commercial information:
             754          (i) in accordance with judicial order;
             755          (ii) on behalf of the commission in any action or proceeding:
             756          (A) under this title;
             757          (B) under another law under which a property taxpayer is required to disclose
             758      commercial information; or
             759          (C) to which the commission is a party;
             760          (iii) on behalf of any party to any action or proceeding under this title if the commercial
             761      information is directly involved in the action or proceeding; or
             762          (iv) if the requirements of Subsection (4)(b) are met, that is:
             763          (A) relevant to an action or proceeding:
             764          (I) filed in accordance with this title; and
             765          (II) involving property; or
             766          (B) in preparation for an action or proceeding involving property.
             767          (b) Commercial information shall be disclosed in accordance with Subsection
             768      (4)(a)(iv):
             769          (i) if the commercial information is obtained from:


             770          (A) a real estate agent if the real estate agent is not a property taxpayer of the property
             771      that is the subject of the action or proceeding;
             772          (B) an appraiser if the appraiser:
             773          (I) is not a property taxpayer of the property that is the subject of the action or
             774      proceeding; and
             775          (II) did not receive the commercial information pursuant to Subsection (8);
             776          (C) a property manager if the property manager is not a property taxpayer of the
             777      property that is the subject of the action or proceeding; or
             778          (D) a property taxpayer other than a property taxpayer of the property that is the subject
             779      of the action or proceeding;
             780          (ii) regardless of whether the commercial information is disclosed in more than one
             781      action or proceeding; and
             782          (iii) (A) if a county board of equalization conducts the action or proceeding, the county
             783      board of equalization takes action to provide that any commercial information disclosed during
             784      the action or proceeding may not be disclosed by any person conducting or participating in the
             785      action or proceeding except as specifically allowed by this section;
             786          (B) if the commission conducts the action or proceeding, the commission enters a
             787      protective order or, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             788      Act, makes rules specifying that any commercial information disclosed during the action or
             789      proceeding may not be disclosed by any person conducting or participating in the action or
             790      proceeding except as specifically allowed by this section; or
             791          (C) if a court of competent jurisdiction conducts the action or proceeding, the court
             792      enters a protective order specifying that any commercial information disclosed during the
             793      action or proceeding may not be disclosed by any person conducting or participating in the
             794      action or proceeding except as specifically allowed by this section.
             795          (c) Notwithstanding Subsection (4)(a), a court may require the production of, and may
             796      admit in evidence, commercial information that is specifically pertinent to the action or
             797      proceeding.
             798          (5) Notwithstanding Subsection (2), this section does not prohibit:
             799          (a) the following from receiving a copy of any commercial information relating to the
             800      basis for assessing a tax that is charged to a property taxpayer:


             801          (i) the property taxpayer;
             802          (ii) a duly authorized representative of the property taxpayer;
             803          (iii) a person that has in effect a contract with the property taxpayer to:
             804          (A) make filings on behalf of the property taxpayer;
             805          (B) process appeals on behalf of the property taxpayer; or
             806          (C) pay a tax under Chapter 2, Property Tax Act, on the property taxpayer's property;
             807          (iv) a property taxpayer that purchases property from another property taxpayer; or
             808          (v) a person that the property taxpayer designates in writing as being authorized to
             809      receive the commercial information;
             810          (b) the publication of statistics as long as the statistics are classified to prevent the
             811      identification of a particular property taxpayer's commercial information; or
             812          (c) the inspection by the attorney general or other legal representative of the state or a
             813      legal representative of a political subdivision of the state of the commercial information of a
             814      property taxpayer:
             815          (i) that brings action to set aside or review a tax or property valuation based on the
             816      commercial information;
             817          (ii) against which an action or proceeding is contemplated or has been instituted under
             818      this title; or
             819          (iii) against which the state or a political subdivision of the state has an unsatisfied
             820      money judgment.
             821          (6) Notwithstanding Subsection (2), in accordance with Title 63G, Chapter 3, Utah
             822      Administrative Rulemaking Act, the commission may by rule establish standards authorizing
             823      an individual listed under Subsection 59-1-403 (1)(a) to disclose commercial information:
             824          (a) (i) in a published decision; or
             825          (ii) in carrying out official duties; and
             826          (b) if that individual listed under Subsection 59-1-403 (1)(a) consults with the property
             827      taxpayer that provided the commercial information.
             828          (7) Notwithstanding Subsection (2):
             829          (a) an individual listed under Subsection 59-1-403 (1)(a) may share commercial
             830      information with the following:
             831          (i) another individual listed in Subsection 59-1-403 (1)(a)(i) or (ii); or


             832          (ii) a representative, agent, clerk, or other officer or employee of a county as required
             833      to fulfill an obligation created by Chapter 2, Property Tax Act;
             834          (b) an individual listed under Subsection 59-1-403 (1)(a) may perform the following to
             835      fulfill an obligation created by Chapter 2, Property Tax Act:
             836          (i) publish notice;
             837          (ii) provide notice; or
             838          (iii) file a lien; or
             839          (c) the commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
             840      Administrative Rulemaking Act, share commercial information gathered from returns and other
             841      written statements with the federal government, any other state, any of the political
             842      subdivisions of another state, or any political subdivision of this state, if these political
             843      subdivisions or the federal government grant substantially similar privileges to this state.
             844          (8) Notwithstanding Subsection (2):
             845          (a) subject to the limitations in this section, an individual described in Subsection
             846      59-1-403 (1)(a) may share the following commercial information with an appraiser:
             847          (i) the sales price of locally assessed property and the related financing terms;
             848          (ii) capitalization rates and related rates and ratios related to the valuation of locally
             849      assessed property; and
             850          (iii) income and expense information related to the valuation of locally assessed
             851      property; and
             852          (b) except as provided in Subsection (4), an appraiser who receives commercial
             853      information:
             854          (i) may disclose the commercial information:
             855          (A) to an individual described in Subsection 59-1-403 (1)(a);
             856          (B) to an appraiser;
             857          (C) in an appraisal if protected commercial information is removed to protect its
             858      confidential nature; or
             859          (D) in performing a consultation service if protected commercial information is not
             860      disclosed; and
             861          (ii) may not use the commercial information:
             862          (A) for a purpose other than to prepare an appraisal or perform a consultation service;


             863      or
             864          (B) for a purpose intended to be, or which could reasonably be foreseen to be,
             865      anti-competitive to a property taxpayer.
             866          (9) (a) The commission shall:
             867          (i) prepare a written explanation of this section; and
             868          (ii) make the written explanation described in Subsection (9)(a)(i) available to the
             869      public.
             870          (b) An employer of a person described in Subsection 59-1-403 (1)(a) shall:
             871          (i) provide the written explanation described in Subsection (9)(a)(i) to each person
             872      described in Subsection 59-1-403 (1)(a) who is reasonably likely to receive commercial
             873      information;
             874          (ii) require each person who receives a written explanation in accordance with
             875      Subsection (9)(b)(i) to:
             876          (A) read the written explanation; and
             877          (B) sign the written explanation; and
             878          (iii) retain each written explanation that is signed in accordance with Subsection
             879      (9)(b)(ii) for a time period:
             880          (A) beginning on the day on which a person signs the written explanation in
             881      accordance with Subsection (9)(b)(ii); and
             882          (B) ending six years after the day on which the employment of the person described in
             883      Subsection (9)(b)(iii)(A) by the employer terminates.
             884          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             885      commission shall by rule define "employer."
             886          (10) (a) An individual described in Subsection (1)(a) or 59-1-403 (1)(a), or an
             887      individual that violates a protective order or similar limitation entered pursuant to Subsection
             888      (4)(b)(iii), is guilty of a class A misdemeanor if that person:
             889          (i) intentionally discloses commercial information in violation of this section; and
             890          (ii) knows that the disclosure described in Subsection (10)(a)(i) is prohibited by this
             891      section.
             892          (b) If the individual described in Subsection (10)(a) is an officer or employee of the
             893      state or a county and is convicted of violating this section, the individual shall be dismissed


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


             925           61-2-201. Division of Real Estate created -- Director appointed -- Personnel.
             926          (1) There is created within the department a Division of Real Estate. The division is
             927      responsible for the administration and enforcement of:
             928          (a) this chapter;
             929          (b) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act;
             930          (c) Title 57, Chapter 19, Timeshare and Camp Resort Act;
             931          (d) Title 57, Chapter 23, Real Estate Cooperative Marketing Act;
             932          [(e) Chapter 2b, Real Estate Appraiser Licensing and Certification Act;]
             933          [(f)] (e) Chapter 2c, Utah Residential Mortgage Practices and Licensing Act;
             934          [(g)] (f) Chapter 2e, Appraisal Management Company Registration and Regulation
             935      Act; [and]
             936          [(h)] (g) Chapter 2f, Real Estate Licensing and Practices Act[.]; and
             937          (h) Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
             938          (2) The division is under the direction and control of a director appointed by the
             939      executive director of the department with the approval of the governor. The director holds the
             940      office of director at the pleasure of the governor.
             941          (3) The director, with the approval of the executive director, may employ personnel
             942      necessary to discharge the duties of the division at salaries to be fixed by the director according
             943      to standards established by the Department of Administrative Services.
             944          Section 13. Section 61-2c-102 is amended to read:
             945           61-2c-102. Definitions.
             946          (1) As used in this chapter:
             947          (a) "Affiliation" means that a mortgage loan originator is associated with a principal
             948      lending manager in accordance with Section 61-2c-209 .
             949          (b) "Applicant" means a person applying for a license under this chapter.
             950          (c) "Approved examination provider" means a person approved by the nationwide
             951      database as an approved test provider.
             952          (d) "Associate lending manager" means an individual who:
             953          (i) qualifies under this chapter as a principal lending manager; and
             954          (ii) works by or on behalf of another principal lending manager in transacting the
             955      business of residential mortgage loans.


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


             987          (IV) sending correspondence; or
             988          (V) assembling files;
             989          (B) ownership of an entity that engages in the business of residential mortgage loans if
             990      the owner does not personally perform the acts listed in Subsection (1)(g)(i); or
             991          (C) except if an individual will engage in an activity as a mortgage loan originator,
             992      acting in one or more of the following capacities:
             993          (I) a loan wholesaler;
             994          (II) an account executive for a loan wholesaler;
             995          (III) a loan underwriter;
             996          (IV) a loan closer; or
             997          (V) funding a loan; or
             998          (D) if employed by a person who owns or services an [exiting] existing residential
             999      mortgage loan[, as defined in Section 70D-2-102 ], the direct negotiation with the borrower for
             1000      the purpose of loan modification.
             1001          (h) "Certified education provider" means a person who is certified under Section
             1002      61-2c-204.1 to provide one or more of the following:
             1003          (i) Utah-specific prelicensing education; or
             1004          (ii) Utah-specific continuing education.
             1005          (i) "Closed-end" means a loan:
             1006          (i) with a fixed amount borrowed; and
             1007          (ii) that does not permit additional borrowing secured by the same collateral.
             1008          (j) "Commission" means the Residential Mortgage Regulatory Commission created in
             1009      Section 61-2c-104 .
             1010          (k) "Compensation" means anything of economic value that is paid, loaned, granted,
             1011      given, donated, or transferred to an individual or entity for or in consideration of:
             1012          (i) services;
             1013          (ii) personal or real property; or
             1014          (iii) another thing of value.
             1015          (l) "Concurrence" means that entities given a concurring [rule] role must jointly agree
             1016      for the action to be taken.
             1017          (m) "Continuing education" means education taken by an individual licensed under this


             1018      chapter in order to meet the education requirements imposed by Sections 61-2c-204.1 and
             1019      61-2c-205 to renew a license under this chapter.
             1020          (n) "Control," as used in Subsection 61-2c-105 (2)(f), means the power to directly or
             1021      indirectly:
             1022          (i) direct or exercise a controlling interest over:
             1023          (A) the management or policies of an entity; or
             1024          (B) the election of a majority of the directors, officers, managers, or managing partners
             1025      of an entity;
             1026          (ii) vote 20% or more of a class of voting securities of an entity by an individual; or
             1027          (iii) vote more than 5% of a class of voting securities of an entity by another entity.
             1028          (o) (i) "Control person" means an individual identified by an entity registered with the
             1029      nationwide database as being [the] an individual [primarily responsible for] directing the
             1030      management or policies of the entity.
             1031          (ii) "Control person" may include one of the following who is identified as provided in
             1032      Subsection (1)(o)(i):
             1033          (A) a manager;
             1034          (B) a managing partner;
             1035          (C) a director;
             1036          (D) an executive officer; or
             1037          (E) an individual who performs a function similar to an individual listed in this
             1038      Subsection (1)(o)(ii).
             1039          (p) "Depository institution" is as defined in Section 7-1-103 .
             1040          (q) "Director" means the director of the division.
             1041          (r) "Division" means the Division of Real Estate.
             1042          (s) "Dwelling" means a residential structure attached to real property that contains one
             1043      to four units including any of the following if used as a residence:
             1044          (i) a condominium unit;
             1045          (ii) a cooperative unit;
             1046          (iii) a manufactured home; or
             1047          (iv) a house.
             1048          (t) "Entity" means:


             1049          (i) a corporation;
             1050          (ii) a limited liability company;
             1051          (iii) a partnership;
             1052          (iv) a company;
             1053          (v) an association;
             1054          (vi) a joint venture;
             1055          (vii) a business trust;
             1056          (viii) a trust; or
             1057          (ix) another organization.
             1058          (u) "Executive director" means the executive director of the Department of Commerce.
             1059          (v) "Federal licensing requirements" means Secure and Fair Enforcement for Mortgage
             1060      Licensing, 12 U.S.C. Sec. 5101 et seq.
             1061          (w) "Foreclosure rescue" means, for compensation or with the expectation of receiving
             1062      valuable consideration, to:
             1063          (i) engage, or offer to engage, in an act that:
             1064          (A) the person represents will assist a borrower in preventing a foreclosure; and
             1065          (B) relates to a transaction involving the transfer of title to residential real property; or
             1066          (ii) as an employee or agent of another person:
             1067          (A) solicit, or offer that the other person will engage in an act described in Subsection
             1068      (1)(w)(i); or
             1069          (B) negotiate terms in relationship to an act described in Subsection (1)(w)(i).
             1070          (x) "Inactive status" means a dormant status into which an unexpired license is placed
             1071      when the holder of the license is not currently engaging in the business of residential mortgage
             1072      loans.
             1073          (y) "Licensee" means a person licensed with the division under this chapter.
             1074          (z) "Licensing examination" means the examination required by Section 61-2c-204.1 or
             1075      61-2c-206 for an individual to obtain a license under this chapter.
             1076          (aa) "Loan modification assistance" means, for compensation or with the expectation
             1077      of receiving valuable consideration, to:
             1078          (i) act, or offer to act, on behalf of a person to:
             1079          (A) obtain a loan term of a residential mortgage loan that is different from an existing


             1080      loan term including:
             1081          (I) an increase or decrease in an interest rate;
             1082          (II) a change to the type of interest rate;
             1083          (III) an increase or decrease in the principal amount of the residential mortgage loan;
             1084          (IV) a change in the number of required period payments;
             1085          (V) an addition of collateral;
             1086          (VI) a change to, or addition of, a prepayment penalty;
             1087          (VII) an addition of a cosigner; or
             1088          (VIII) a change in persons obligated under the existing residential mortgage loan; or
             1089          (B) substitute a new residential mortgage loan for an existing residential mortgage
             1090      loan; or
             1091          (ii) as an employee or agent of another person:
             1092          (A) solicit, or offer that the other person will engage in an act described in Subsection
             1093      (1)(aa)(i); or
             1094          (B) negotiate terms in relationship to an act described in Subsection (1)(aa)(i).
             1095          (bb) (i) Except as provided in Subsection (1)(bb)(ii), "mortgage loan originator" means
             1096      an individual who for compensation or in expectation of compensation:
             1097          (A) (I) takes a residential mortgage loan application; or
             1098          (II) offers or negotiates terms of a residential mortgage loan for the purpose of:
             1099          (Aa) a purchase;
             1100          (Bb) a refinance;
             1101          (Cc) a loan modification assistance; or
             1102          (Dd) a foreclosure rescue; and
             1103          (B) is licensed as a mortgage loan originator in accordance with this chapter.
             1104          (ii) "Mortgage loan originator" does not include a person who:
             1105          (A) is described in Subsection (1)(bb)(i), but who performs exclusively administrative
             1106      or clerical tasks as described in Subsection (1)(g)(ii)(A);
             1107          (B) (I) is licensed under Chapter 2f, Real Estate Licensing and Practices Act;
             1108          (II) performs only real estate brokerage activities; and
             1109          (III) receives no compensation from:
             1110          (Aa) a lender;


             1111          (Bb) a principal lending manager; or
             1112          (Cc) an agent of a lender or principal lending manager; or
             1113          (C) is solely involved in extension of credit relating to a timeshare plan, as defined in
             1114      11 U.S.C. Sec. 101(53D).
             1115          (cc) "Nationwide database" means the Nationwide Mortgage Licensing System and
             1116      Registry, authorized under federal licensing requirements.
             1117          (dd) "Nontraditional mortgage product" means a mortgage product other than a 30-year
             1118      fixed rate mortgage.
             1119          (ee) "Person" means an individual or entity.
             1120          (ff) "Prelicensing education" means education taken by an individual seeking to be
             1121      licensed under this chapter in order to meet the education requirements imposed by Section
             1122      61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
             1123          (gg) (i) "Principal lending manager" means an individual licensed as a principal
             1124      lending manager under Section 61-2c-206 to transact the business of residential mortgage
             1125      loans.
             1126          (ii) An individual who is a principal lending manager may transact the business of
             1127      residential mortgage loans as a mortgage loan originator.
             1128          (hh) "Record" means information that is:
             1129          (i) prepared, owned, received, or retained by a person; and
             1130          (ii) (A) inscribed on a tangible medium; or
             1131          (B) (I) stored in an electronic or other medium; and
             1132          (II) in a perceivable and reproducible form.
             1133          (ii) "Residential mortgage loan" means an extension of credit, if:
             1134          (i) the loan or extension of credit is secured by a:
             1135          (A) mortgage;
             1136          (B) deed of trust; or
             1137          (C) consensual security interest;
             1138          (ii) the mortgage, deed of trust, or consensual security interest described in Subsection
             1139      (1)(ii)(i):
             1140          (A) is on a dwelling located in the state; and
             1141          (B) is created with the consent of the owner of the residential real property; and


             1142          (iii) solely for the purposes of defining "mortgage loan originator," the extension of
             1143      credit is primarily for personal, family, or household use.
             1144          (jj) "Sponsorship" means an association in accordance with Section 61-2c-209 between
             1145      an individual licensed under this chapter and an entity licensed under this chapter.
             1146          (kk) "State" means:
             1147          (i) a state, territory, or possession of the United States;
             1148          (ii) the District of Columbia; or
             1149          (iii) the Commonwealth of Puerto Rico.
             1150          (ll) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
             1151          (mm) "Utah-specific" means an educational or examination requirement under this
             1152      chapter that relates specifically to Utah.
             1153          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             1154      meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
             1155      Utah Administrative Rulemaking Act.
             1156          (b) If a term not defined in this section is not defined by rule, the term shall have the
             1157      meaning commonly accepted in the business community.
             1158          Section 14. Section 61-2c-103 is amended to read:
             1159           61-2c-103. Powers and duties of the division.
             1160          (1) The division shall administer this chapter.
             1161          (2) In addition to a power or duty expressly provided in this chapter, the division may:
             1162          (a) receive and act on a complaint including:
             1163          (i) taking action designed to obtain voluntary compliance with this chapter; or
             1164          (ii) commencing an administrative or judicial proceeding on the division's own
             1165      initiative;
             1166          (b) establish one or more programs for the education of consumers with respect to
             1167      residential mortgage loans;
             1168          (c) (i) make one or more studies appropriate to effectuate the purposes and policies of
             1169      this chapter; and
             1170          (ii) make the results of the studies described in Subsection (2)(c)(i) available to the
             1171      public;
             1172          (d) visit and investigate a person licensed under this chapter, regardless of whether the


             1173      person is located in Utah; [and]
             1174          (e) employ one or more necessary hearing examiners, investigators, clerks, and other
             1175      employees and agents[.]; and
             1176          (f) establish fees under Section 63J-1-504 for:
             1177          (i) processing an application for licensing or certification; and
             1178          (ii) any other function required or permitted by this chapter.
             1179          (3) The division shall make rules for the administration of this chapter in accordance
             1180      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, including:
             1181          (a) licensure procedures for:
             1182          (i) a person required by this chapter to obtain a license with the division; and
             1183          (ii) the establishment of a branch office by an entity;
             1184          (b) proper handling of money received by a licensee;
             1185          (c) record-keeping requirements by a licensee, including proper disposal of a record;
             1186          (d) certification procedures for certifying an education provider; and
             1187          (e) standards of conduct for a licensee or certified education provider.
             1188          (4) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
             1189      Administrative Rulemaking Act, require as a condition of maintaining a license or certification
             1190      under this chapter that a person comply with a requirement of the nationwide database if:
             1191          (a) required for uniformity amongst states; and
             1192          (b) not inconsistent with this chapter.
             1193          (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
             1194      Administrative Rulemaking Act, provide a process under which an individual may challenge
             1195      information contained in the nationwide database.
             1196          (6) The division shall annually:
             1197          (a) review the requirements related to the nationwide database imposed by federal
             1198      licensing requirements or the nationwide database on:
             1199          (i) the division;
             1200          (ii) a licensee under this chapter;
             1201          (iii) a certified education provider; or
             1202          (iv) an approved examination provider; and
             1203          (b) after the review required by Subsection (6)(a):


             1204          (i) report to the Business and Labor Interim Committee the impact of the requirements
             1205      on the implementation by the division of this chapter; and
             1206          (ii) recommend legislation, if any, to the Business and Labor Interim Committee
             1207      related to how the division should coordinate with the nationwide database.
             1208          (7) The division may enter into a relationship or contract with the nationwide database
             1209      or another entity designated by the nationwide database to do the following related to a licensee
             1210      or other person subject to this chapter:
             1211          (a) collect or maintain a record; and
             1212          (b) process a transaction fee or other fee.
             1213          (8) The division shall regularly report the following to the nationwide database:
             1214          (a) a violation of this chapter;
             1215          (b) disciplinary action under this chapter; and
             1216          (c) other information relevant to this chapter.
             1217          (9) If a person pays a fee or costs to the division with a negotiable instrument [and the
             1218      negotiable instrument] or any other method that is not honored for payment:
             1219          (a) the transaction for which the payment is submitted is voidable by the division;
             1220          (b) the division may reverse the transaction if payment of the applicable fee or costs is
             1221      not received in full; and
             1222          (c) the person's license, certification, or registration is automatically suspended:
             1223          (i) beginning the day on which the payment is due; and
             1224          (ii) ending the day on which payment is made in full.
             1225          Section 15. Section 61-2c-202 is amended to read:
             1226           61-2c-202. Licensure procedures.
             1227          (1) To apply for licensure under this chapter an applicant shall in a manner provided by
             1228      the division by rule:
             1229          (a) if the applicant is an entity, submit a licensure statement that:
             1230          (i) lists any name under which the entity will transact business in this state;
             1231          (ii) lists the address of the principal business location of the entity;
             1232          (iii) identifies the principal lending manager of the entity;
             1233          (iv) contains the signature of the principal lending manager;
             1234          (v) identifies the one or more control persons for the entity;


             1235          (vi) identifies the jurisdictions in which the entity is registered, licensed, or otherwise
             1236      regulated in the business of residential mortgage loans;
             1237          (vii) discloses any adverse administrative action taken by an administrative agency
             1238      against:
             1239          (A) the entity; or
             1240          (B) any control person for the entity;
             1241          (viii) discloses any history of criminal proceedings involving any control person for the
             1242      entity; and
             1243          (ix) includes any information required by the division by rule;
             1244          (b) if the applicant is an individual:
             1245          (i) submit a licensure statement that identifies the entity with which the applicant is
             1246      sponsored;
             1247          (ii) authorize a criminal background check through the nationwide database accessing:
             1248          (A) the Utah Bureau of Criminal Identification, if the nationwide database is able to
             1249      obtain information from the Utah Bureau of Criminal Identification; and
             1250          (B) the Federal Bureau of Investigation;
             1251          (iii) submit evidence using a method approved by the division by rule of having
             1252      successfully completed approved prelicensing education in accordance with Section
             1253      61-2c-204.1 ;
             1254          (iv) submit evidence using a method approved by the division by rule of having
             1255      successfully passed any required licensing examination in accordance with Section
             1256      61-2c-204.1 ; and
             1257          (v) submit evidence using a method approved by the division by rule of having
             1258      successfully registered in the nationwide database, including paying a fee required by the
             1259      nationwide database; and
             1260          (c) pay to the division:
             1261          (i) an application fee established by the division in accordance with Section 63J-1-504 ;
             1262      and
             1263          (ii) the reasonable expenses incurred by the division in processing the application for
             1264      licensure.
             1265          (2) (a) Upon receiving an application, the division, with the concurrence of the


             1266      commission, shall determine whether the applicant:
             1267          (i) meets the qualifications for licensure; and
             1268          (ii) complies with this section.
             1269          (b) If the division, with the concurrence of the commission, determines that an
             1270      applicant meets the qualifications for licensure and complies with this section, the division
             1271      shall issue the applicant a license.
             1272          (c) If the division, with the concurrence of the commission, determines that the
             1273      division requires more information to make a determination under Subsection (2)(a), the
             1274      division may:
             1275          (i) hold the application pending further information about an applicant's criminal
             1276      background or history related to adverse administrative action in any jurisdiction; or
             1277          (ii) issue a conditional license:
             1278          (A) pending the completion of a criminal background check; and
             1279          (B) subject to probation, suspension, or revocation if the criminal background check
             1280      reveals that the applicant did not truthfully or accurately disclose on the licensing application a
             1281      criminal history or other history related to adverse administrative action.
             1282          (3) (a) The commission may delegate to the division the authority to:
             1283          (i) review a class or category of application for an initial or renewed license;
             1284          (ii) determine whether an applicant meets the qualifications for licensure;
             1285          (iii) conduct a necessary hearing on an application; and
             1286          (iv) approve or deny a license application without concurrence by the commission.
             1287          (b) If the commission delegates to the division the authority to approve or deny an
             1288      application without concurrence by the commission and the division denies an application for
             1289      licensure, the applicant who is denied licensure may petition the commission for a de novo
             1290      review of the [denial] application.
             1291          (c) An applicant who is denied licensure under Subsection (3)(b) may seek agency
             1292      review by the executive director only after the commission reviews the division's denial of the
             1293      applicant's application.
             1294          (d) Subject to Subsection (3)(c) and in accordance with Title 63G, Chapter 4,
             1295      Administrative Procedures Act, an applicant who is denied licensure under this chapter may
             1296      submit a request for agency review to the executive director within 30 days following the day


             1297      on which the commission order denying the licensure is issued.
             1298          Section 16. Section 61-2c-203 is amended to read:
             1299           61-2c-203. General qualifications for licensure.
             1300          (1) To qualify for licensure under this chapter, a person shall demonstrate through
             1301      procedures established by rule made by the division in accordance with Title 63G, Chapter 3,
             1302      Utah Administrative Rulemaking Act:
             1303          (a) financial responsibility;
             1304          (b) good moral character, honesty, integrity, and truthfulness; and
             1305          (c) the competence to transact the business of residential mortgage loans, including
             1306      general fitness such as to command the confidence of the community and to warrant a
             1307      determination that the person will operate honestly, fairly, and efficiently within the purposes
             1308      of this chapter.
             1309          [(2) If an applicant is an individual, the applicant may not have:]
             1310          [(a) been convicted of, pled guilty to, pled no contest to, pled guilty in a similar manner
             1311      to, or resolved by diversion or its equivalent:]
             1312          [(i) a felony involving an act of fraud, dishonesty, a breach of trust, or money
             1313      laundering; or]
             1314          [(ii) a felony in the seven years preceding the day on which an application is submitted
             1315      to the division;]
             1316          [(b) in the five years preceding the day on which an application is submitted to the
             1317      division, been convicted of, pled guilty to, pled no contest to, pled guilty in a similar manner
             1318      to, or resolved by diversion its equivalent:]
             1319          [(i) a class B or class C misdemeanor involving moral turpitude; or]
             1320          [(ii) a crime in another jurisdiction that is the equivalent of a class B or class C
             1321      misdemeanor involving moral turpitude;]
             1322          [(c) had a license as a mortgage loan originator revoked by a governmental jurisdiction
             1323      at any time;]
             1324          [(d) had a license or registration suspended, surrendered, canceled, or denied in the five
             1325      years preceding the date the individual applies for licensure if:]
             1326          [(i) the registration or license is issued by this state or another jurisdiction; and]
             1327          [(ii) the suspension, surrender, cancellation, or denial is based on misconduct in a


             1328      professional capacity that relates to moral character, honesty, integrity, truthfulness, or the
             1329      competency to transact the business of residential mortgage loans;]
             1330          [(e) been the subject of a bar by the Securities and Exchange Commission, the New
             1331      York Stock Exchange, or the National Association of Securities Dealers within the five years
             1332      preceding the date the individual applies for registration; or]
             1333          [(f) had a permanent injunction entered against the individual:]
             1334          [(i) by a court or administrative agency; and]
             1335          [(ii) on the basis of:]
             1336          [(A) conduct or a practice involving the business of residential mortgage loans; or]
             1337          [(B) conduct involving fraud, misrepresentation, or deceit.]
             1338          [(3)] (2) If an applicant is an entity, the applicant may not have a control person who
             1339      fails to meet the requirements of Subsection [(2)] (1) for an individual applicant.
             1340          Section 17. Section 61-2c-205 is amended to read:
             1341           61-2c-205. Term of licensure -- Renewal -- Reporting of changes.
             1342          (1) (a) A license issued under this chapter expires as follows:
             1343          (i) for the calendar year the license is issued:
             1344          (A) if the license is issued on or before October 31, the license expires on December 31
             1345      of the same calendar year; and
             1346          (B) if the license is issued on or after November 1, the license expires on December 31
             1347      of the following calendar year; and
             1348          (ii) after the December 31 on which a license expires under Subsection (1)(a)(i), a
             1349      license expires annually on December 31.
             1350          (b) Notwithstanding Subsection (1)(a), the time period of a license may be extended or
             1351      shortened by as much as one year to maintain or change a renewal cycle established by rule by
             1352      the division.
             1353          (2) To renew a license, no later than the date the license expires, a licensee shall in a
             1354      manner provided by the division by rule:
             1355          (a) file a renewal statement;
             1356          (b) furnish the information required by Subsection 61-2c-202 (1);
             1357          (c) renew the licensee's registration with the nationwide database, including the
             1358      payment of a fee required by the nationwide database;


             1359          (d) pay a fee to the division established by the division in accordance with Section
             1360      63J-1-504 ; and
             1361          (e) if the licensee is an individual and the individual's license is in active status at the
             1362      time of application for renewal, submit proof of having completed during the year before
             1363      application the continuing education required under Section 61-2c-204.1 .
             1364          (3) (a) A licensee under this chapter shall notify the division in a manner provided by
             1365      the division by rule within 10 days of the date on which there is a change in:
             1366          (i) a name under which the licensee transacts the business of residential mortgage loans
             1367      in this state;
             1368          (ii) (A) if the licensee is an entity, the business location of the licensee; or
             1369          (B) if the licensee is an individual, the home and business addresses of the individual;
             1370          (iii) the principal lending manager of the entity;
             1371          (iv) the entity with which an individual licensee is licensed to conduct the business of
             1372      residential mortgage loans; or
             1373          (v) any other information that is defined as material by rule made by the division.
             1374          (b) Failure to notify the division of a change described in Subsection (3)(a) is separate
             1375      grounds for disciplinary action against a licensee.
             1376          (c) The division may charge a fee established in accordance with Section 63J-1-504 for
             1377      processing a change that a licensee is required to report to the division under Subsection (3)(a).
             1378          (4) (a) A licensee shall notify the division by sending the division a signed statement
             1379      within 10 business days of:
             1380          [(a)] (i) (A) a conviction of a [criminal offense] felony, class A misdemeanor, or class
             1381      B misdemeanor;
             1382          [(ii)] (B) the entry of a plea in abeyance to a [criminal offense] felony, class A
             1383      misdemeanor, or class B misdemeanor; or
             1384          [(iii)] (C) the potential resolution of a [criminal case] felony, class A misdemeanor, or
             1385      class B misdemeanor by[: (A)] a diversion agreement[;], or [(B)] any other agreement under
             1386      which a criminal charge is held in suspense for a period of time;
             1387          [(b)] (ii) filing a personal bankruptcy or bankruptcy of a business that transacts the
             1388      business of residential mortgage loans;
             1389          [(c)] (iii) the suspension, revocation, surrender, cancellation, or denial of a professional


             1390      license or professional registration of the licensee, whether the license or registration is issued
             1391      by this state or another jurisdiction; or
             1392          [(d)] (iv) the entry of a cease and desist order or a temporary or permanent injunction:
             1393          [(i)] (A) against the licensee by a court or licensing agency; and
             1394          [(ii)] (B) based on[: (A)] conduct or a practice involving the business of residential
             1395      mortgage loans[;], or [(B)] conduct involving fraud, misrepresentation, or deceit.
             1396          (b) The commission, with the concurrence of the division, shall enforce the reporting
             1397      requirement under this Subsection (4) pursuant to Section 61-2c-402 .
             1398          (5) (a) A license under this chapter expires if the licensee does not apply to renew the
             1399      license on or before the expiration date of the license.
             1400          (b) A licensee whose license has expired may apply to reinstate the expired license, in
             1401      a manner provided by the division by rule by:
             1402          (i) requesting reinstatement;
             1403          (ii) paying to the division a renewal fee and a late fee determined by the division under
             1404      Section 63J-1-504 ; and
             1405          (iii) reinstating the licensee's registration with the nationwide database, including the
             1406      payment of a fee required by the nationwide database.
             1407          Section 18. Section 61-2c-301 is amended to read:
             1408           61-2c-301. Prohibited conduct -- Violations of the chapter.
             1409          (1) A person transacting the business of residential mortgage loans in this state may
             1410      not:
             1411          (a) give or receive compensation or anything of value in exchange for a referral of
             1412      residential mortgage loan business;
             1413          (b) charge a fee in connection with a residential mortgage loan transaction:
             1414          (i) that is excessive; or
             1415          [(ii) if the person does not comply with Section 70D-2-305 ;]
             1416          (ii) without providing to the loan applicant a written statement signed by the loan
             1417      applicant:
             1418          (A) stating whether or not the fee or deposit is refundable; and
             1419          (B) describing the conditions, if any, under which all or a portion of the fee or deposit
             1420      will be refunded to the applicant;


             1421          (c) give or receive compensation or anything of value in exchange for a referral of
             1422      settlement or loan closing services related to a residential mortgage loan transaction;
             1423          (d) do any of the following to induce a lender to extend credit as part of a residential
             1424      mortgage loan transaction:
             1425          (i) make a false statement or representation;
             1426          (ii) cause false documents to be generated; or
             1427          (iii) knowingly permit false information to be submitted by any party;
             1428          (e) give or receive compensation or anything of value, or withhold or threaten to
             1429      withhold payment of an appraiser fee, to influence the independent judgment of an appraiser in
             1430      reaching a value conclusion in a residential mortgage loan transaction, except that it is not a
             1431      violation of this section for a licensee to withhold payment because of a bona fide dispute
             1432      regarding a failure of the appraiser to comply with the licensing law or the Uniform Standards
             1433      of Professional Appraisal Practice;
             1434          (f) violate or not comply with:
             1435          (i) this chapter;
             1436          (ii) an order of the commission or division; or
             1437          (iii) a rule made by the division;
             1438          (g) fail to respond within the required time period to:
             1439          (i) a notice or complaint of the division; or
             1440          (ii) a request for information from the division;
             1441          (h) make false representations to the division, including in a licensure statement;
             1442          (i) for a residential mortgage loan transaction beginning on or after January 1, 2004,
             1443      engage in the business of residential mortgage loans with respect to the transaction if the
             1444      person also acts in any of the following capacities with respect to the same residential mortgage
             1445      loan transaction:
             1446          (i) appraiser;
             1447          (ii) escrow agent;
             1448          (iii) real estate agent;
             1449          (iv) general contractor; or
             1450          (v) title insurance producer;
             1451          (j) order a title insurance report or hold a title insurance policy unless the person


             1452      provides to the title insurer a copy of a valid, current license under this chapter;
             1453          (k) engage in unprofessional conduct as defined by rule;
             1454          (l) engage in an act or omission in transacting the business of residential mortgage
             1455      loans that constitutes dishonesty, fraud, or misrepresentation;
             1456          (m) engage in false or misleading advertising;
             1457          (n) (i) fail to account for money received in connection with a residential mortgage
             1458      loan;
             1459          (ii) use money for a different purpose from the purpose for which the money is
             1460      received; or
             1461          (iii) except as provided in Subsection (4), retain money paid for services if the services
             1462      are not performed;
             1463          (o) fail, within 90 calendar days of a request from a borrower who has paid for an
             1464      appraisal, to give a copy of an appraisal ordered and used for a transaction to the borrower;
             1465          (p) engage in an act that is performed to:
             1466          (i) evade this chapter; or
             1467          (ii) assist another person to evade this chapter;
             1468          (q) recommend or encourage default, delinquency, or continuation of an existing
             1469      default or delinquency, by a mortgage applicant on an existing indebtedness before the closing
             1470      of a residential mortgage loan that will refinance all or part of the indebtedness;
             1471          (r) in the case of the principal lending manager of an entity or a branch office of an
             1472      entity, fail to exercise reasonable supervision over the activities of:
             1473          (i) unlicensed staff; and
             1474          (ii) a mortgage loan originator who is affiliated with the principal lending manager;
             1475          (s) pay or offer to pay an individual who does not hold a license under this chapter for
             1476      work that requires the individual to hold a license under this chapter;
             1477          (t) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             1478          (i) provide a title insurance product or service without the approval required by Section
             1479      31A-2-405 ; or
             1480          (ii) knowingly provide false or misleading information in the statement required by
             1481      Subsection 31A-2-405 (2);
             1482          (u) represent to the public that the person can or will perform any act of a mortgage


             1483      loan originator if that person is not licensed under this chapter because the person is exempt
             1484      under Subsection 61-2c-102 (1)(g)(ii)(A), including through:
             1485          (i) advertising;
             1486          (ii) a business card;
             1487          (iii) stationery;
             1488          (iv) a brochure;
             1489          (v) a sign;
             1490          (vi) a rate list; or
             1491          (vii) other promotional item; or
             1492          (v) (i) engage in an act of loan modification assistance without being licensed under
             1493      this chapter;
             1494          (ii) engage in an act of foreclosure rescue that requires licensure as a real estate agent
             1495      or real estate broker under Chapter 2, Division of Real Estate, without being licensed under
             1496      that chapter;
             1497          (iii) engage in an act of loan modification assistance without entering into a written
             1498      agreement specifying which one or more acts of loan modification assistance will be
             1499      completed;
             1500          [(iii)] (iv) request or require a person to pay a fee [if:] before obtaining:
             1501          [(A) the person is required to pay the fee before entering into a written agreement
             1502      specifying what one or more acts of loan modification assistance will be completed if the fee is
             1503      paid; or]
             1504          [(B) in a case when the residential mortgage loan that is the subject of the loan
             1505      modification assistance is foreclosed within one year of the day on which the person enters into
             1506      a written agreement, the person is required to forfeit the fee for any reason;]
             1507          (A) a written offer for a loan modification from the person's lender or servicer; and
             1508          (B) the person's written acceptance of the offer from the lender or servicer;
             1509          [(iv)] (v) induce a person seeking a loan modification to hire the licensee to engage in
             1510      an act of loan modification assistance by:
             1511          (A) suggesting to the person that the licensee has a special relationship with the
             1512      person's lender or loan servicer; or
             1513          (B) falsely representing or advertising that the licensee is acting on behalf of:


             1514          (I) a government agency;
             1515          (II) the person's lender or loan servicer; or
             1516          (III) a nonprofit or charitable institution;
             1517          [(v)] (vi) recommend or participate in a loan modification that requires a person to:
             1518          (A) transfer title to real property to the licensee or to a [third party] third-party with
             1519      whom the licensee has a business relationship or financial interest;
             1520          (B) make a mortgage payment to a person other than the person's loan servicer; or
             1521          (C) refrain from contacting the person's:
             1522          (I) lender;
             1523          (II) loan servicer;
             1524          (III) attorney;
             1525          (IV) credit counselor; or
             1526          (V) housing counselor; or
             1527          [(vi)] (vii) for an agreement for loan modification assistance entered into on or after
             1528      May 11, 2010, engage in an act of loan modification assistance without offering in writing to
             1529      the person entering into the agreement for loan modification assistance a right to cancel the
             1530      agreement within three business days after the day on which the person enters the agreement.
             1531          (2) Whether or not the crime is related to the business of residential mortgage loans, it
             1532      is a violation of this chapter for a licensee or a person who is a certified education provider to
             1533      do any of the following with respect to a criminal offense that involves moral turpitude:
             1534          (a) be convicted;
             1535          (b) plead guilty or nolo contendere;
             1536          (c) enter a plea in abeyance; or
             1537          (d) be subjected to a criminal disposition similar to the ones described in Subsections
             1538      (2)(a) through (c).
             1539          (3) A principal lending manager does not violate Subsection (1)(r) if:
             1540          (a) in contravention of the principal lending manager's written policies and
             1541      instructions, an affiliated licensee of the principal lending manager violates:
             1542          (i) this chapter; or
             1543          (ii) rules made by the division under this chapter;
             1544          (b) the principal lending manager established and followed reasonable procedures to


             1545      ensure that affiliated licensees receive adequate supervision;
             1546          (c) upon learning of a violation by an affiliated licensee, the principal lending manager
             1547      attempted to prevent or mitigate the damage;
             1548          (d) the principal lending manager did not participate in or ratify the violation by an
             1549      affiliated licensee; and
             1550          (e) the principal lending manager did not attempt to avoid learning of the violation.
             1551          (4) Notwithstanding Subsection (1)(n)(iii), a licensee may, upon compliance with
             1552      Section 70D-2-305 , charge a reasonable cancellation fee for work done originating a mortgage
             1553      if the mortgage is not closed.
             1554          Section 19. Section 61-2c-302 is amended to read:
             1555           61-2c-302. Record requirements.
             1556          (1) For the time period specified in Subsection (2), a licensee shall make or possess any
             1557      record required for that licensee by a rule made by the division.
             1558          (2) A licensee shall maintain and safeguard in its possession a record described in
             1559      Subsection (1) for four years from the last to occur of the following:
             1560          (a) the final entry on a residential mortgage loan is made by that licensee;
             1561          (b) if the residential mortgage loan is serviced by the licensee:
             1562          (i) the residential mortgage loan is paid in full; or
             1563          (ii) the licensee ceases to service the residential mortgage loan; or
             1564          (c) if the residential mortgage loan is not serviced by the licensee, the residential
             1565      mortgage loan is closed.
             1566          (3) A licensee shall:
             1567          (a) make available to the division for inspection and copying during normal business
             1568      hours all records required to be maintained under this chapter; and
             1569          (b) upon reasonable notice from the division to a licensee, produce all records
             1570      described in Subsection (3)(a) that are related to an investigation being conducted by the
             1571      division at the division office for inspection and copying by the division.
             1572          (4) A licensee who is an entity shall maintain and produce for inspection by the
             1573      division a current list of all individuals whose licenses are sponsored by the entity.
             1574          (5) (a) A licensee who engages in an activity as a mortgage loan originator shall
             1575      maintain a report of condition submitted to the nationwide database as required by 12 U.S.C.


             1576      Sec. 5104(e) for at least four years from the day on which the licensee submits the report of
             1577      condition to the nationwide database.
             1578          (b) Upon request by the division, a mortgage loan originator shall produce a report of
             1579      condition for inspection by the division.
             1580          Section 20. Section 61-2c-402 is amended to read:
             1581           61-2c-402. Disciplinary action.
             1582          (1) Subject to the requirements of Section 61-2c-402.1 , the commission, with the
             1583      concurrence of the division, may impose a sanction described in Subsection (2) against a
             1584      person if the person:
             1585          (a) (i) is a licensee or person required to be licensed under this chapter; and
             1586          (ii) violates this chapter; or
             1587          (b) (i) is a certified education provider or person required to be certified to provide
             1588      prelicensing or continuing education under this chapter; and
             1589          (ii) violates this chapter.
             1590          (2) The commission, with the concurrence of the director, may against a person
             1591      described in Subsection (1):
             1592          (a) impose an educational requirement;
             1593          (b) impose a civil penalty against the individual or entity in an amount not to exceed
             1594      the greater of:
             1595          (i) $5,000 for each violation; or
             1596          (ii) the amount equal to any gain or economic benefit derived from each violation;
             1597          (c) deny an application for an original license;
             1598          (d) do any of the following to a license under this chapter:
             1599          (i) suspend;
             1600          (ii) revoke;
             1601          (iii) place on probation;
             1602          (iv) deny renewal;
             1603          (v) deny reinstatement; or
             1604          (vi) in the case of a denial of a license or a suspension that extends to the expiration
             1605      date of a license, set a waiting period for a person to apply for a license under this chapter;
             1606          (e) issue a cease and desist order;


             1607          (f) require the reimbursement of the division of costs incurred by the division related to
             1608      the recovery, storage, or destruction of a record that the person disposes of in a manner that
             1609      violates this chapter or a rule made under this chapter;
             1610          (g) modify a sanction described in Subsections (2)(a) through (f) if the commission
             1611      finds that the person complies with court ordered restitution; or
             1612          (h) impose any combination of sanctions described in this Subsection (2).
             1613          (3) (a) If the commission, with the concurrence of the division, issues an order that
             1614      orders a fine or educational requirements as part of a disciplinary action against a person,
             1615      including a stipulation and order, the commission shall state in the order the deadline by which
             1616      the person shall comply with the fine or educational requirements.
             1617          (b) If a person fails to comply with a stated deadline:
             1618          (i) the person's license or certificate is automatically suspended:
             1619          (A) beginning the day specified in the order as the deadline for compliance; and
             1620          (B) ending the day on which the person complies in full with the order; and
             1621          (ii) if the person fails to pay a fine required by an order, the division may begin a
             1622      collection process:
             1623          (A) established by the division by rule made in accordance with Title 63G, Chapter 3,
             1624      Utah Administrative Rulemaking Act; and
             1625          (B) subject to Title 63A, Chapter 8, Office of State Debt Collection.
             1626          (4) (a) A person whose license was revoked under this chapter before May 11, 2010,
             1627      may request that the revocation be converted to a suspension under this Subsection (4):
             1628          (i) if the revocation was not as a result of a felony conviction involving fraud,
             1629      misrepresentation, [or] deceit, dishonesty, breach of trust, or money laundering; and
             1630          (ii) by filing a written request with the division.
             1631          (b) Upon receipt of a request to convert a revocation under this Subsection (4), the
             1632      commission, with the concurrence of the director, shall determine whether to convert the
             1633      revocation.
             1634          (c) The commission may delegate to the division the authority to make a decision on
             1635      whether to convert a revocation.
             1636          (d) If the division, acting under Subsection (4)(c), denies a request to convert a
             1637      revocation, the person who requests the conversion may appeal the decision in a hearing


             1638      conducted by the commission:
             1639          (i) after the division denies the request to convert the revocation; and
             1640          (ii) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             1641          (e) The commission may delegate to the division or an administrative law judge the
             1642      authority to conduct a hearing described in Subsection (4)(d).
             1643          Section 21. Section 61-2c-501.5 is amended to read:
             1644           61-2c-501.5. Definitions.
             1645          As used in this part:
             1646          (1) "Civil judgment" means a judgment in a civil action that:
             1647          (a) is awarded in an action brought against a [real estate licensee] person licensed
             1648      under this chapter on the basis of fraud, misrepresentation, or deceit in a residential mortgage
             1649      loan transaction; and
             1650          (b) awards actual damages.
             1651          (2) "Criminal restitution judgment" means a judgment that, in accordance with the
             1652      Utah Code of Criminal Procedure, orders criminal restitution to a person and against a [real
             1653      estate licensee] person licensed under this chapter for a criminal offense involving fraud,
             1654      misrepresentation, or deceit in a residential mortgage loan transaction.
             1655          (3) "Final judgment" means one of the following judgments upon termination of the
             1656      proceedings related to the judgment, including appeals:
             1657          (a) a civil judgment; or
             1658          (b) a criminal restitution judgment.
             1659          (4) "Fund" means the Residential Mortgage Loan Education, Research, and Recovery
             1660      Fund created in Section 61-2c-501 .
             1661          Section 22. Section 61-2c-507 is amended to read:
             1662           61-2c-507. Division subrogated -- Authority to revoke license.
             1663          (1) If the division pays a person from the fund in accordance with this part:
             1664          (a) the division is subrogated to the rights of that person for the amounts paid out of the
             1665      fund; and
             1666          (b) any amount and interest recovered by the division shall be deposited in the fund.
             1667          (2) (a) Subject to Subsection (2)(b), the license of a licensee for whom payment from
             1668      the fund is made under this part is automatically revoked as of the earlier of the day on which:


             1669          (i) the division is ordered by a court to pay from the fund; or
             1670          (ii) the division pays from the fund.
             1671          (b) (i) A person whose license is revoked under Subsection (2)(a) may appeal the
             1672      revocation in a de novo hearing conducted by the commission:
             1673          (A) after the revocation; and
             1674          (B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             1675          (ii) The commission may delegate:
             1676          (A) to the division or an administrative law judge the authority to conduct a hearing
             1677      described in Subsection (2)(b)(i); or
             1678          (B) to the division the authority to make a decision on whether relief from a revocation
             1679      should be granted.
             1680          (3) Unless the revocation is not upheld after a hearing described in Subsection (2)(b), a
             1681      licensee whose license is revoked pursuant to Subsection (2) may not apply for a new license
             1682      until the licensee pays into the fund:
             1683          (a) the amount paid out of the fund on behalf of the licensee; and
             1684          (b) interest at a rate determined by the division with the concurrence of the
             1685      commission.
             1686          Section 23. Section 61-2e-102 is amended to read:
             1687           61-2e-102. Definitions.
             1688          As used in this chapter:
             1689          (1) "Applicable appraisal standards" means:
             1690          (a) the Uniform Standards for Professional Appraisal Practice:
             1691          (i) published by the Appraisal Foundation; and
             1692          (ii) as adopted under Section [ 61-2b-27 ] 61-2g-403 ;
             1693          (b) Chapter [2b] 2g, Real Estate Appraiser Licensing and Certification Act; and
             1694          (c) rules made by the board under Chapter [2b] 2g, Real Estate Appraiser Licensing
             1695      and Certification Act.
             1696          (2) "Appraisal" is as defined in Section [ 61-2b-2 ] 61-2g-102 .
             1697          (3) "Appraisal foundation" is as defined in Section [ 61-2b-2 ] 61-2g-102 .
             1698          (4) "Appraisal management company" means an entity that serves as a third-party
             1699      broker of an appraisal service between a client and an appraiser by:


             1700          (a) [administers] administering a network of appraisers to perform real estate appraisal
             1701      activities for one or more clients;
             1702          (b) (i) [receives] receiving a request for a real estate appraisal activity from a client;
             1703      and
             1704          (ii) for a fee paid by the client, [enters] entering into an agreement with one or more
             1705      appraisers to perform the real estate appraisal activity contained in the request; or
             1706          [(c) otherwise serves as a third-party broker of an appraisal management service
             1707      between a client and an appraiser.]
             1708          (c) any other means.
             1709          (5) "Appraisal management service" means a process of:
             1710          (a) receiving a request for the performance of a real estate appraisal activity from a
             1711      client; and
             1712          (b) for a fee paid by the client, entering into an agreement with one or more appraisers
             1713      to perform the real estate appraisal activity contained in the request.
             1714          (6) "Appraisal report" is as defined in Section [ 61-2b-2 ] 61-2g-102 .
             1715          (7) "Appraiser" means an individual who engages in a real estate appraisal activity.
             1716          (8) "Appraiser panel" means a group of appraisers that are selected by an appraisal
             1717      management company to perform real estate appraisal activities for the appraisal management
             1718      company.
             1719          (9) "Board" means the Real Estate Appraiser Licensing and Certification Board that is
             1720      created in Section [ 61-2b-7 ] 61-2g-204 .
             1721          (10) "Client" means a person that enters into an agreement with an appraisal
             1722      management company for the performance of a real estate appraisal activity.
             1723          (11) "Concurrence" means that the entities that are given a concurring role must jointly
             1724      agree before an action may be taken.
             1725          [(11)] (12) "Controlling person" means:
             1726          (a) an owner, officer, or director of an entity seeking to offer appraisal management
             1727      services;
             1728          (b) an individual employed, appointed, or authorized by an appraisal management
             1729      company who has the authority to:
             1730          (i) enter into a contractual relationship with a client for the performance of an appraisal


             1731      management service; and
             1732          (ii) enter into an agreement with an appraiser for the performance of a real estate
             1733      appraisal activity; or
             1734          (c) an individual who possesses, directly or indirectly, the power to direct or cause the
             1735      direction of the management or policies of an appraisal management company.
             1736          [(12)] (13) "Director" means the director of the division.
             1737          [(13)] (14) "Division" means the Division of Real Estate of the Department of
             1738      Commerce.
             1739          [(14)] (15) "Entity" means:
             1740          (a) a corporation;
             1741          (b) a partnership;
             1742          (c) a sole proprietorship;
             1743          (d) a limited liability company;
             1744          (e) another business entity; or
             1745          (f) a subsidiary or unit of an entity described in Subsections [(14)] (15)(a) through (e).
             1746          [(15)] (16) "Person" means an individual or an entity.
             1747          [(16)] (17) "Real estate appraisal activity" is as defined in Section [ 61-2b-2 ]
             1748      61-2g-102 .
             1749          Section 24. Section 61-2e-103 is amended to read:
             1750           61-2e-103. Rulemaking.
             1751          In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1752      board may make rules, with the concurrence of the division, that are:
             1753          (1) consistent with this chapter; and
             1754          (2) necessary to implement this chapter.
             1755          Section 25. Section 61-2e-202 is amended to read:
             1756           61-2e-202. Initial registration process.
             1757          (1) (a) To register under this chapter as an appraisal management company, an entity
             1758      shall:
             1759          (i) file with the division a registration application in a form prescribed by the division;
             1760          (ii) pay to the division a fee determined in accordance with Section 63J-1-504 ;
             1761          (iii) if the entity is not a resident of this state, submit an irrevocable consent for service


             1762      of process meeting the requirements of Subsection (3); and
             1763          (iv) have the application for registration approved by the division.
             1764          (b) The division shall approve an application if the division finds that the entity:
             1765          (i) complies with this Subsection (1); and
             1766          (ii) meets the qualifications under Section 61-2e-201 .
             1767          (c) The division may, upon compliance with Title 63G, Chapter 4, Administrative
             1768      Procedures Act, deny the issuance of a registration to an applicant on any ground enumerated
             1769      in this chapter.
             1770          (d) If an entity pays a fee or costs to the division with a negotiable instrument or other
             1771      method that is not honored for payment:
             1772          (i) the transaction for which the payment is submitted is voidable by the division;
             1773          (ii) the division may reverse the transaction if payment of the applicable fee or costs is
             1774      not received in full; and
             1775          (iii) the entity's registration is automatically suspended:
             1776          (A) beginning the day on which the payment is due; and
             1777          (B) ending the day on which payment is made in full.
             1778          (2) A registration application shall include the following:
             1779          (a) the name of the entity seeking registration;
             1780          (b) a business address of the entity seeking registration;
             1781          (c) telephone contact information of the entity seeking registration;
             1782          (d) if the entity is not an entity domiciled in this state, the name and contact
             1783      information for the entity's agent for service of process in this state;
             1784          (e) for each individual who owns 10% or more of the entity:
             1785          (i) the individual's name, address, and contact information;
             1786          (ii) a statement of whether or not the individual has had a license or certificate to
             1787      engage in an act related to a real estate or mortgage transaction refused, denied, canceled, or
             1788      revoked in this state or in another state; and
             1789          (iii) (A) fingerprint cards in a form acceptable to the division at the time the
             1790      registration application is filed; and
             1791          (B) consent to a criminal background check by the Utah Bureau of Criminal
             1792      Identification and the Federal Bureau of Investigation regarding the application;


             1793          (f) the name, address, and contact information for each controlling person;
             1794          (g) for the controlling person designated as the contact as required by Section
             1795      61-2e-201 :
             1796          (i) a statement of whether or not the individual has had a license or certificate to
             1797      engage in an act related to a real estate or mortgage transaction refused, denied, canceled, or
             1798      revoked in this state or in another state; and
             1799          (ii) (A) fingerprint cards in a form acceptable to the division at the time the registration
             1800      application is filed; and
             1801          (B) consent to a criminal background check by the Utah Bureau of Criminal
             1802      Identification and the Federal Bureau of Investigation regarding the application;
             1803          (h) provide an explanation required by:
             1804          (i) Section 61-2e-301 , related to adding an individual to an appraiser panel;
             1805          (ii) Section 61-2e-302 , related to the review of the work of an appraiser; and
             1806          (iii) Section 61-2e-303 , related to recordkeeping; and
             1807          (i) any other information required by the board.
             1808          (3) An irrevocable consent for service of process required to be filed under Subsection
             1809      (1) shall provide that process may be served on the entity by delivering the process to the
             1810      director if:
             1811          (a) the service of process is for an action:
             1812          (i) in a court of this state against an entity; and
             1813          (ii) arising out of an act governed by this chapter; and
             1814          (b) a plaintiff cannot, in the exercise of due diligence, obtain personal service upon the
             1815      entity.
             1816          Section 26. Section 61-2e-203 is amended to read:
             1817           61-2e-203. Criminal background check -- Conditional registration -- Changes in
             1818      ownership or controlling person.
             1819          (1) The division shall request the Department of Public Safety to complete a Federal
             1820      Bureau of Investigation criminal background check for an individual described in Subsection
             1821      61-2e-202 [(1)](2)(e) or (g) through the national criminal history system or any successor
             1822      system.
             1823          (2) (a) The entity filing the application under Section 61-2e-202 shall pay the cost of


             1824      the criminal background check and the fingerprinting.
             1825          (b) [Monies] Money paid to the division by an entity for the cost of a criminal
             1826      background check [are] is nonlapsing.
             1827          (3) (a) A registration issued under Section 61-2e-202 is conditional, pending
             1828      completion of a criminal background check.
             1829          (b) [If] (i) A registration shall be immediately and automatically revoked if a criminal
             1830      background check discloses that an individual described in Subsection 61-2e-202 [(1)](2)(e) or
             1831      (g) fails to accurately disclose a criminal history[, the registration is immediately and
             1832      automatically revoked.] involving:
             1833          (A) the appraisal industry;
             1834          (B) the appraisal management industry; or
             1835          (C) a felony conviction on the basis of an allegation of fraud, misrepresentation, or
             1836      deceit.
             1837          (ii) If a criminal background check discloses that an individual described in Subsection
             1838      61-2e-202 (2)(e) or (g) fails to accurately disclose a criminal history other than that described in
             1839      Subsection (3)(b)(i), the division shall review the application, and in accordance with rules
             1840      made by the division pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1841      may:
             1842          (A) place a condition on a registration;
             1843          (B) place a restriction on a registration;
             1844          (C) revoke a registration; or
             1845          (D) refer the application to the board for a decision.
             1846          (c) An entity whose conditional registration is revoked under [this] Subsection (3)(b)(i)
             1847      or whose license is conditioned, restricted, or revoked under Subsection (3)(b)(ii) is entitled to
             1848      a post-revocation hearing conducted in accordance with Title 63G, Chapter 4, Administrative
             1849      Procedures Act, to challenge the revocation.
             1850          (d) The board shall decide whether relief from the revocation of a registration under
             1851      this Subsection (3) will be granted, except that relief from [a] an automatic revocation under
             1852      [this] Subsection (3)(b)(i) may be granted only if:
             1853          (i) the criminal history upon which the revocation is based:
             1854          (A) did not occur; or


             1855          (B) is the criminal history of another individual;
             1856          (ii) (A) the revocation is based on a failure to accurately disclose a criminal history;
             1857      and
             1858          (B) the entity has a reasonable good faith belief at the time of application that there is
             1859      no criminal history to be disclosed; or
             1860          (iii) the division fails to follow the prescribed procedure for the revocation.
             1861          (e) The board may delegate to the division the authority to conduct a post-revocation
             1862      hearing under Subsection (3)(d).
             1863          [(e)] (f) If a registration is revoked or a revocation under this Subsection (3) is upheld
             1864      after a post-revocation hearing, the entity may not apply for a new registration until at least 12
             1865      months after the day on which the registration is revoked.
             1866          (4) (a) An appraisal management company shall comply with this Subsection (4) if
             1867      there is a change in:
             1868          (i) an individual who owns 10% or more of the entity; or
             1869          (ii) the controlling person designated as the contact as required by Section 61-2e-201 .
             1870          (b) If there is a change in an individual described in Subsection (4)(a), within 30 days
             1871      of the day on which the change occurs, the appraisal management company shall file with the
             1872      division:
             1873          (i) the individual's name, address, and contact information;
             1874          (ii) a statement of whether or not the individual has had a license or certificate to
             1875      engage in an act related to a real estate or mortgage transaction refused, denied, canceled, or
             1876      revoked in this state or in another state; and
             1877          (iii) (A) fingerprint cards in a form acceptable to the division at the time the
             1878      registration application is filed; and
             1879          (B) consent to a criminal background check by the Utah Bureau of Criminal
             1880      Identification and the Federal Bureau of Investigation regarding the application.
             1881          Section 27. Section 61-2e-204 is amended to read:
             1882           61-2e-204. Renewal of a registration.
             1883          (1) (a) A registration under this chapter expires two years from the day on which the
             1884      registration is filed.
             1885          (b) Notwithstanding Subsection (1)(a), the time period of a registration may be


             1886      extended or shortened by as much as one year to maintain or change a renewal cycle
             1887      established by rule by the division.
             1888          (2) To renew a registration under this chapter, before the day on which the registration
             1889      expires, an appraisal management company shall:
             1890          (a) file with the division a renewal registration application on a form prescribed by the
             1891      division; and
             1892          (b) pay to the division a fee determined in accordance with Section 63J-1-504 .
             1893          (3) A renewal registration application shall include substantially similar information to
             1894      the information required under Section 61-2e-202 , except that for an individual described in
             1895      Subsection 61-2e-202 [(1)](2)(e) or (g), the entity is required to report whether the individual
             1896      has had:
             1897          (a) (i) a conviction of a criminal offense;
             1898          (ii) the entry of a plea in abeyance to a criminal offense; or
             1899          (iii) the potential resolution of a criminal case by:
             1900          (A) a diversion agreement; or
             1901          (B) another agreement under which a criminal charge is held in suspense for a period
             1902      of time;
             1903          (b) a filing of personal bankruptcy or bankruptcy of a business that transacts the
             1904      appraisal management services;
             1905          (c) the suspension, revocation, surrender, cancellation, or denial of a professional
             1906      license or certification, whether the license or registration is issued by this state or another
             1907      jurisdiction; or
             1908          (d) the entry of a cease and desist order or a temporary or permanent injunction:
             1909          (i) against the individual by a court or government agency; and
             1910          (ii) on the basis of:
             1911          (A) conduct or a practice involving the business of appraisal management services; or
             1912          (B) conduct involving fraud, misrepresentation, or deceit.
             1913          (4) A registration expires if it is not renewed on or before its expiration date, except
             1914      that for a period of 30 days after the expiration date, the registration may be reinstated upon
             1915      compliance with this section, including payment of a renewal fee and a late fee determined by
             1916      the division and the board.


             1917          (5) Notwithstanding Subsection (4), the division may extend the term of a license that
             1918      would expire under Subsection (4) except for the extension if:
             1919          (a) (i) the person complies with the requirements of this section to renew the
             1920      registration; and
             1921          (ii) the renewal application remains pending at the time of the extension; or
             1922          (b) at the time of the extension, there is pending under this chapter a disciplinary
             1923      action.
             1924          Section 28. Section 61-2e-301 is amended to read:
             1925           61-2e-301. Use of licensed or certified appraisers.
             1926          (1) An appraisal management company required to be registered under this chapter
             1927      may not enter into an agreement with an appraiser for the performance of a real estate appraisal
             1928      activity unless the appraiser is licensed or certified in good standing pursuant to Chapter [2b]
             1929      2g, Real Estate Appraiser Licensing and Certification Act.
             1930          (2) (a) An appraisal management company required to be registered under this chapter
             1931      shall have a system to verify that an individual added to the appraiser panel of the appraisal
             1932      management company holds a license or certificate in good standing in this state pursuant to
             1933      Chapter [2b] 2g, Real Estate Appraiser Licensing and Certification Act.
             1934          (b) As part of the registration process under Part 2, Registration, an appraisal
             1935      management company shall biennially provide an explanation of the system described in
             1936      Subsection (2)(a) in the form prescribed by the division.
             1937          Section 29. Section 61-2e-302 is amended to read:
             1938           61-2e-302. Adherence to standards.
             1939          (1) An appraisal management company required to be registered under this chapter
             1940      shall have a system in place to review the work of an appraiser who performs a real estate
             1941      appraisal activity for the appraisal management company on a periodic basis to ensure that a
             1942      real estate appraisal activity is conducted in accordance with applicable appraisal standards.
             1943          (2) As part of the registration process under Part 2, Registration, an appraisal
             1944      management company shall biennially provide an explanation of the system described in
             1945      Subsection (1) in the form prescribed by the division.
             1946          (3) The board may make rules, made in accordance with Title 63G, Chapter 3, Utah
             1947      Administrative Rulemaking Act, as necessary to implement the requirements of 15 U.S.C. Sec.


             1948      1639e(i), except that the rules may not apply to an appraisal management company that is a
             1949      subsidiary owned and controlled by a financial institution regulated by a federal financial
             1950      institution regulatory agency.
             1951          Section 30. Section 61-2e-307 is amended to read:
             1952           61-2e-307. Prohibitions related to an appraiser.
             1953          (1) An appraisal management company required to be registered under this chapter, or
             1954      a controlling person, employee, or agent of the appraisal management company may not
             1955      influence or attempt to influence the development, reporting, or review of an appraisal through:
             1956          (a) coercion;
             1957          (b) extortion;
             1958          (c) collusion;
             1959          (d) compensation;
             1960          (e) instruction;
             1961          (f) inducement;
             1962          (g) intimidation;
             1963          (h) bribery; or
             1964          (i) any other manner that would constitute undue influence.
             1965          (2) A violation of Subsection (1) includes doing one or more of the following for a
             1966      purpose listed in Subsection (1):
             1967          (a) withholding or threatening to withhold timely payment for an appraisal;
             1968          (b) withholding or threatening to withhold future business for an appraiser;
             1969          (c) taking adverse action or threatening to take adverse action against an appraiser
             1970      regarding use of the appraiser for a real estate appraisal activity;
             1971          (d) expressly or by implication promising future business or increased compensation
             1972      for an appraiser;
             1973          (e) conditioning one or more of the following on the opinion, conclusion, or valuation
             1974      to be reached, or on a preliminary estimate or opinion requested from an appraiser:
             1975          (i) a request for a real estate appraisal activity; or
             1976          (ii) the payment of consideration;
             1977          (f) requesting that an appraiser provide at any time before the appraiser's completion of
             1978      a real estate appraisal activity:


             1979          (i) an estimated, predetermined, or desired valuation in an appraisal report; or
             1980          (ii) an estimated value or comparable sale;
             1981          (g) except for a copy of a sales contract for a purchase transaction, providing to an
             1982      appraiser:
             1983          (i) an anticipated, estimated, encouraged, or desired value for a subject property; or
             1984          (ii) a proposed or target amount to be loaned to the borrower;
             1985          (h) providing to an appraiser, or an individual related to the appraiser, stock or other
             1986      financial or non-financial benefits;
             1987          (i) allowing the removal of an appraiser from an appraiser panel, without prior written
             1988      notice to the appraiser as required by Section 61-2e-306 ;
             1989          (j) obtaining, using, or paying for a subsequent appraisal or ordering an automated
             1990      valuation model in connection with a mortgage financing transaction unless:
             1991          (i) (A) there is a reasonable basis to believe that the initial appraisal does not meet
             1992      applicable appraisal standards; and
             1993          (B) the reasonable basis is noted in the loan file; or
             1994          (ii) the subsequent appraisal or automated valuation model is done pursuant to a pre- or
             1995      post-funding appraisal review or quality control process in accordance with applicable
             1996      appraisal standards;
             1997          (k) compensating an appraiser in a manner that the person should reasonably have
             1998      known would result in the appraiser not conducting a real estate appraisal activity in a manner
             1999      consistent with applicable appraisal standards;
             2000          (l) engaging in the business of an appraisal management company under an assumed or
             2001      fictitious name not properly registered in this state;
             2002          (m) accepting a contingent fee for performing an appraisal management service if the
             2003      fee is contingent on:
             2004          (i) the appraiser report having a predetermined analysis, opinion, or conclusion;
             2005          (ii) the analysis, opinion, conclusion, or valuation reached in an appraisal report; or
             2006          (iii) the consequences resulting from the appraisal assignment; or
             2007          (n) any other act or practice that impairs or attempts to impair an appraiser's
             2008      independence, objectivity, or impartiality.
             2009          (3) An appraisal management company required to be registered under this chapter, or


             2010      a controlling person, employee, or agent of the appraisal management company, may not
             2011      require an appraiser to indemnify the appraisal management company against liability except
             2012      liability for errors and omissions by the appraiser.
             2013          [(3)] (4) This section may not be construed to prohibit an appraisal management
             2014      company from requesting that an appraiser:
             2015          (a) provide additional information about the basis for a valuation; or
             2016          (b) correct an objective factual error in an appraisal report.
             2017          [(4)] (5) An appraisal management company required to be registered under this
             2018      chapter, or a controlling person, employee, or agent of the appraisal management company may
             2019      not alter, modify, or otherwise change a completed appraisal report submitted by an appraiser.
             2020          Section 31. Section 61-2e-401 is amended to read:
             2021           61-2e-401. Division authority -- Immunity.
             2022          (1) (a) In addition to a power or duty expressly provided in this chapter, the division
             2023      may:
             2024          (i) receive and act on a complaint including:
             2025          (A) taking action designed to obtain voluntary compliance with this chapter; or
             2026          (B) commencing an administrative or judicial proceeding on the division's own
             2027      initiative;
             2028          (ii) investigate an entity required to be registered under this chapter, regardless of
             2029      whether the entity is located in Utah; and
             2030          (iii) employ one or more investigators, clerks, or other employees or agents if:
             2031          (A) approved by the executive director; and
             2032          (B) within the budget of the division.
             2033          (b) A failure to respond to a request by the division in an investigation under this
             2034      chapter is considered to be a separate violation of this chapter, including:
             2035          (i) failing to respond to a subpoena;
             2036          (ii) withholding evidence; or
             2037          (iii) failing to produce a document or record.
             2038          (2) (a) If a person is found to have violated this chapter or a rule made under this
             2039      chapter, the person shall pay the costs incurred by the division to copy a book, paper, contract,
             2040      document, or record required under this chapter, including the costs incurred to copy an


             2041      electronic book, paper, contract, document, or record in a universally readable format.
             2042          (b) If a person fails to pay the costs described in Subsection (2)(a) when due, the
             2043      person's registration is automatically suspended:
             2044          (i) beginning the day on which the payment of costs is due; and
             2045          (ii) ending the day on which the costs are paid.
             2046          [(2)] (3) The division is immune from a civil action or criminal prosecution for
             2047      initiating or assisting in a lawful investigation of an act or participating in a disciplinary
             2048      proceeding under this chapter if the division takes the action:
             2049          (a) without malicious intent; and
             2050          (b) in the reasonable belief that the action is taken pursuant to the powers and duties
             2051      vested in the division under this chapter.
             2052          Section 32. Section 61-2e-402 is amended to read:
             2053           61-2e-402. Enforcement -- Immunity for board.
             2054          (1) (a) The board may order disciplinary action, with the concurrence of the division,
             2055      against:
             2056          (i) an entity registered under this chapter;
             2057          (ii) an entity required to be registered under this chapter; or
             2058          (iii) a controlling person of an entity described in this Subsection (1)(a).
             2059          (b) If the board, with the concurrence of the division, makes a finding described in
             2060      Subsection (2) pursuant to an adjudicative proceeding conducted in accordance with Title 63G,
             2061      Chapter 4, Administrative Procedures Act, the board, with the concurrence of the division,
             2062      may:
             2063          (i) revoke, suspend, or place an entity's registration on probation;
             2064          (ii) deny an entity's original registration;
             2065          (iii) deny an entity's renewal registration;
             2066          (iv) in the case of denial or revocation of a registration, set a waiting period for an
             2067      applicant to apply for a registration under this chapter;
             2068          (v) order remedial education;
             2069          (vi) impose a civil penalty upon a person not to exceed the greater of:
             2070          (A) [$2,500] $5,000 for each violation; or
             2071          (B) the amount of any gain or economic benefit from a violation;


             2072          (vii) issue a cease and desist order; or
             2073          (viii) do a combination of Subsections (1)(b)(i) through (vii).
             2074          (2) Subsection (1) applies if the board finds, with the concurrence of the division, that a
             2075      person has engaged in, is attempting to, or has attempted to engage in:
             2076          (a) an act that violates this chapter;
             2077          (b) an act that violates a rule made [by the board] under this chapter;
             2078          (c) procuring a registration for the person or another person by fraud,
             2079      misrepresentation, or deceit;
             2080          (d) paying money or attempting to pay money other than a fee provided for by this
             2081      chapter to an employee of the division to procure a registration under this chapter;
             2082          (e) an act or omission in the business of an appraisal management company that
             2083      constitutes dishonesty, fraud, or misrepresentation;
             2084          (f) unprofessional conduct as defined by statute or rule; or
             2085          (g) other conduct that constitutes dishonest dealing.
             2086          (3) (a) If the board, with the concurrence of the director, issues an order that orders a
             2087      fine or remedial education as part of a disciplinary action against a person, including a
             2088      stipulation and order, the board shall state in the order the deadline by which the person shall
             2089      comply with the fine or remedial education requirements.
             2090          (b) If a person fails to comply by the stated deadline, the person's registration shall be
             2091      immediately and automatically suspended:
             2092          (i) beginning the day specified in the order as the deadline for compliance; and
             2093          (ii) ending the day on which the person complies in full with the order.
             2094          (c) If a person fails to pay a fine required by an order, the division shall begin a
             2095      collection process:
             2096          (i) established by the division by rule made in accordance with Title 63G, Chapter 3,
             2097      Utah Administrative Rulemaking Act; and
             2098          (ii) subject to Title 63A, Chapter 8, Office of State Debt Collection.
             2099          [(3)] (4) A member of the board is immune from a civil action or criminal prosecution
             2100      for a disciplinary proceeding under this chapter if:
             2101          (a) the action is taken without malicious intent; and
             2102          (b) in the reasonable belief that the action taken was taken pursuant to the powers and


             2103      duties vested in a member of the board under this chapter.
             2104          Section 33. Section 61-2f-102 is amended to read:
             2105           61-2f-102. Definitions.
             2106          As used in this chapter:
             2107          (1) "Associate broker" means an individual who is:
             2108          (a) employed or engaged as an independent contractor by or on behalf of a principal
             2109      broker to perform an act set out in Subsection [(17)] (18) for valuable consideration; and
             2110          (b) licensed under this chapter as an associate broker.
             2111          (2) "Branch office" means a principal broker's real estate brokerage office that is not
             2112      the principal broker's main office.
             2113          (3) "Business day" means a day other than:
             2114          (a) a Saturday;
             2115          (b) a Sunday; or
             2116          (c) a federal or state holiday.
             2117          (4) "Business opportunity" means the sale, lease, or exchange of any business that
             2118      includes an interest in real estate.
             2119          [(4)] (5) "Commission" means the Real Estate Commission established under this
             2120      chapter.
             2121          [(5)] (6) "Concurrence" means the entities given a concurring role must jointly agree
             2122      for action to be taken.
             2123          [(6)] (7) "Condominium unit" is as defined in Section 57-8-3 .
             2124          [(7)] (8) "Condominium homeowners' association" means the condominium unit
             2125      owners acting as a group in accordance with declarations and bylaws.
             2126          [(8)] (9) (a) "Condominium hotel" means one or more condominium units that are
             2127      operated as a hotel.
             2128          (b) "Condominium hotel" does not mean a hotel consisting of condominium units, all
             2129      of which are owned by a single entity.
             2130          [(9)] (10) "Director" means the director of the Division of Real Estate.
             2131          [(10)] (11) "Division" means the Division of Real Estate.
             2132          [(11)] (12) "Entity" means:
             2133          (a) a corporation;


             2134          (b) a partnership;
             2135          (c) a limited liability company;
             2136          (d) a company;
             2137          (e) an association;
             2138          (f) a joint venture;
             2139          (g) a business trust;
             2140          (h) a trust; or
             2141          (i) any organization similar to an entity described in Subsections [(11)] (12)(a) through
             2142      (h).
             2143          [(12)] (13) "Executive director" means the director of the Department of Commerce.
             2144          [(13)] (14) "Foreclosure rescue" means, for compensation or with the expectation of
             2145      receiving valuable consideration, to:
             2146          (a) engage, or offer to engage, in an act that:
             2147          (i) the person represents will assist a borrower in preventing a foreclosure; and
             2148          (ii) relates to a transaction involving the transfer of title to residential real property; or
             2149          (b) as an employee or agent of another person:
             2150          (i) solicit, or offer that the other person will engage in an act described in Subsection
             2151      [(13)] (14)(a); or
             2152          (ii) negotiate terms in relationship to an act described in Subsection [(13)] (14)(a).
             2153          [(14)] (15) "Loan modification assistance" means, for compensation or with the
             2154      expectation of receiving valuable consideration, to:
             2155          (a) act, or offer to act, on behalf of a person to:
             2156          (i) obtain a loan term of a residential mortgage loan that is different from an existing
             2157      loan term including:
             2158          (A) an increase or decrease in an interest rate;
             2159          (B) a change to the type of interest rate;
             2160          (C) an increase or decrease in the principal amount of the residential mortgage loan;
             2161          (D) a change in the number of required period payments;
             2162          (E) an addition of collateral;
             2163          (F) a change to, or addition of, a prepayment penalty;
             2164          (G) an addition of a cosigner; or


             2165          (H) a change in persons obligated under the existing residential mortgage loan; or
             2166          (ii) substitute a new residential mortgage loan for an existing residential mortgage loan;
             2167      or
             2168          (b) as an employee or agent of another person:
             2169          (i) solicit, or offer that the other person will engage in an act described in Subsection
             2170      [(14)] (15)(a); or
             2171          (ii) negotiate terms in relationship to an act described in Subsection [(14)] (15)(a).
             2172          [(15)] (16) "Main office" means the address which a principal broker designates with
             2173      the division as the principal broker's primary brokerage office.
             2174          [(16)] (17) "Person" means an individual or entity.
             2175          [(17)] (18) "Principal broker" means an individual who is licensed as a principal broker
             2176      under this chapter and who:
             2177          (a) (i) sells or lists real estate or a business opportunity for sale with the expectation of
             2178      receiving valuable consideration;
             2179          (ii) buys, exchanges, or auctions real estate, [options] an option on real estate, a
             2180      business opportunity, or [improvements] an improvement on real estate with the expectation of
             2181      receiving valuable consideration; or
             2182          (iii) [who] advertises, offers, attempts, or otherwise holds the individual out to be
             2183      engaged in the business described in Subsection [(17)] (18)(a)(i) or (ii);
             2184          (b) is employed by or on behalf of the owner of real estate or by a prospective
             2185      purchaser of real estate and performs an act described in Subsection [(17)] (18)(a), whether the
             2186      individual's compensation is at a stated salary, a commission basis, upon a salary and
             2187      commission basis, or otherwise;
             2188          (c) (i) with the expectation of receiving valuable consideration, manages property
             2189      owned by another person; or
             2190          (ii) advertises or otherwise holds the individual out to be engaged in property
             2191      management;
             2192          (d) with the expectation of receiving valuable consideration, assists or directs in the
             2193      procurement of prospects for or the negotiation of a transaction listed in Subsections [(17)]
             2194      (18)(a) and (c);
             2195          (e) except for a mortgage lender, title insurance producer, or an employee of a


             2196      mortgage lender or title insurance producer, assists or directs in the closing of a real estate
             2197      transaction with the expectation of receiving valuable consideration; or
             2198          (f) (i) engages in foreclosure rescue; or
             2199          (ii) advertises, offers, attempts, or otherwise holds the person out as being engaged in
             2200      foreclosure rescue[; and].
             2201          [(g) is licensed as a principal broker under this chapter.]
             2202          [(18)] (19) (a) "Property management" means engaging in, with the expectation of
             2203      receiving valuable consideration, the management of real estate owned by another person or
             2204      advertising or otherwise claiming to be engaged in property management by:
             2205          (i) advertising for, arranging, negotiating, offering, or otherwise attempting or
             2206      participating in a transaction calculated to secure the rental or leasing of real estate;
             2207          (ii) collecting, agreeing, offering, or otherwise attempting to collect rent for the real
             2208      estate and accounting for and disbursing the money collected; or
             2209          (iii) authorizing expenditures for repairs to the real estate.
             2210          (b) "Property management" does not include:
             2211          (i) hotel or motel management;
             2212          (ii) rental of tourist accommodations, including hotels, motels, tourist homes,
             2213      condominiums, condominium hotels, mobile home park accommodations, campgrounds, or
             2214      similar public accommodations for a period of less than 30 consecutive days, and the
             2215      management activities associated with these rentals; or
             2216          (iii) the leasing or management of surface or subsurface minerals or oil and gas
             2217      interests, if the leasing or management is separate from a sale or lease of the surface estate.
             2218          [(19)] (20) "Real estate" includes leaseholds and business opportunities involving real
             2219      property.
             2220          [(20)] (21) (a) "Regular salaried employee" means an individual who performs a
             2221      service for wages or other remuneration, whose employer withholds federal employment taxes
             2222      under a contract of hire, written or oral, express or implied.
             2223          (b) "Regular salaried employee" does not include an individual who performs services
             2224      on a project-by-project basis or on a commission basis.
             2225          [(21)] (22) "Reinstatement" means restoring a license that has expired or has been
             2226      suspended.


             2227          [(22)] (23) "Reissuance" means the process by which a licensee may obtain a license
             2228      following revocation of the license.
             2229          [(23)] (24) "Renewal" means extending a license for an additional licensing period on
             2230      or before the date the license expires.
             2231          [(24)] (25) "Sales agent" means an individual who is:
             2232          (a) affiliated with a principal broker, either as an independent contractor or an
             2233      employee as provided in Section 61-2f-303 , to perform for valuable consideration an act
             2234      described in Subsection [(17)] (18); and
             2235          (b) licensed under this chapter as a sales agent.
             2236          [(25)] (26) (a) "Undivided fractionalized long-term estate" means an ownership interest
             2237      in real property by two or more persons that is:
             2238          (i) a tenancy in common; or
             2239          (ii) any other legal form of undivided estate in real property including:
             2240          (A) a fee estate;
             2241          (B) a life estate; or
             2242          (C) other long-term estate.
             2243          (b) "Undivided fractionalized long-term estate" does not include a joint tenancy.
             2244          Section 34. Section 61-2f-105 is amended to read:
             2245           61-2f-105. Fees.
             2246          (1) In addition to when expressly authorized in another provision of this chapter, the
             2247      division may charge and collect reasonable fees determined by the commission with the
             2248      concurrence of the division under Section 63J-1-504 to cover the costs for:
             2249          (a) issuing a new or duplicate license;
             2250          (b) registering an entity or branch office;
             2251          (c) certifying a real estate school, course, or instructor;
             2252          (d) providing a history of a license, registration, or certification; [and]
             2253          (e) producing a certified copy of an official document, order, or other paper or
             2254      transcript; and
             2255          (f) other duties required by this chapter.
             2256          (2) Notwithstanding Section 13-1-2 , a fee collected under Subsection (1)(c) shall be
             2257      deposited in the Real Estate Education, Research, and Recovery Fund.


             2258          (3) If a person pays a fee or costs to the division with a negotiable instrument [and the
             2259      negotiable instrument] or other payment method that is not honored for payment:
             2260          (a) the transaction for which the payment is submitted is voidable by the division;
             2261          (b) the division may reverse the transaction if payment of the applicable fee or costs is
             2262      not received in full; and
             2263          (c) the person's license, certification, or registration is automatically suspended:
             2264          (i) beginning the day on which the payment is due; and
             2265          (ii) ending the day on which payment is made in full.
             2266          (4) (a) A fee under this chapter is in lieu of all other license fees or assessments that
             2267      might otherwise be imposed or charged by the state or any of its political subdivisions upon, or
             2268      as a condition of, the privilege of conducting the business regulated by this chapter, except that
             2269      a political subdivision within the state may charge a business license fee on a principal broker
             2270      if the principal broker maintains a place of business within the jurisdiction of the political
             2271      subdivision.
             2272          (b) Unless otherwise exempt, a licensee under this chapter is subject to the taxes
             2273      imposed under Title 59, Revenue and Taxation.
             2274          Section 35. Section 61-2f-202 is amended to read:
             2275           61-2f-202. Exempt persons and transactions.
             2276          (1) (a) Except as provided in Subsection (1)(b), a license under this chapter is not
             2277      required for:
             2278          (i) an individual who as owner or lessor performs an act described in Subsection
             2279      61-2f-102 [(17)](18) with reference to real estate owned or leased by that individual;
             2280          (ii) a regular salaried employee of the owner or lessor of real estate who, with reference
             2281      to nonresidential real estate owned or leased by the employer, performs an act described in
             2282      Subsection 61-2f-102 [(17)](18)(a) or (b);
             2283          (iii) a regular salaried employee of the owner of real estate who performs property
             2284      management services with reference to real estate owned by the employer, except that the
             2285      employee may only manage real estate for one employer;
             2286          (iv) an individual who performs property management services for the apartments at
             2287      which that individual resides in exchange for free or reduced rent on that individual's
             2288      apartment;


             2289          (v) a regular salaried employee of a condominium homeowners' association who
             2290      manages real estate subject to the declaration of condominium that established the
             2291      condominium homeowners' association, except that the employee may only manage real estate
             2292      for one condominium homeowners' association; and
             2293          (vi) a regular salaried employee of a licensed property management company who
             2294      performs support services, as prescribed by rule, for the property management company.
             2295          (b) Subsection (1)(a) does not exempt from licensing:
             2296          (i) an employee engaged in the sale of real estate regulated under:
             2297          (A) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act; [and] or
             2298          (B) Title 57, Chapter 19, Timeshare and Camp Resort Act;
             2299          (ii) an employee engaged in the sale of cooperative interests regulated under Title 57,
             2300      Chapter 23, Real Estate Cooperative Marketing Act; or
             2301          (iii) an individual whose interest as an owner or lessor is obtained by that individual or
             2302      transferred to that individual for the purpose of evading the application of this chapter, and not
             2303      for another legitimate business reason.
             2304          (2) A license under this chapter is not required for:
             2305          (a) an isolated transaction by an individual holding a duly executed power of attorney
             2306      from an owner;
             2307          (b) services rendered by an attorney in performing the attorney's duties as an attorney;
             2308          (c) a receiver, trustee in bankruptcy, administrator, executor, or an individual acting
             2309      under order of a court;
             2310          (d) a trustee or employee of a trustee under a deed of trust or a will;
             2311          (e) a public utility, officer of a public utility, or regular salaried employee of a public
             2312      utility, unless performance of an act described in Subsection 61-2f-102 [(17)](18) is in
             2313      connection with the sale, purchase, lease, or other disposition of real estate or investment in
             2314      real estate unrelated to the principal business activity of that public utility;
             2315          (f) a regular salaried employee or authorized agent working under the oversight of the
             2316      Department of Transportation when performing an act on behalf of the Department of
             2317      Transportation in connection with one or more of the following:
             2318          (i) the acquisition of real estate pursuant to Section 72-5-103 ;
             2319          (ii) the disposal of real estate pursuant to Section 72-5-111 ;


             2320          (iii) services that constitute property management; or
             2321          (iv) the leasing of real estate; and
             2322          (g) a regular salaried employee of a county, city, or town when performing an act on
             2323      behalf of the county, city, or town:
             2324          (i) in accordance with:
             2325          (A) if a regular salaried employee of a city or town:
             2326          (I) Title 10, Utah Municipal Code; or
             2327          (II) Title 11, Cities, Counties, and Local Taxing Units; and
             2328          (B) if a regular salaried employee of a county:
             2329          (I) Title 11, Cities, Counties, and Local Taxing Units; and
             2330          (II) Title 17, Counties; and
             2331          (ii) in connection with one or more of the following:
             2332          (A) the acquisition of real estate, including by eminent domain;
             2333          (B) the disposal of real estate;
             2334          (C) services that constitute property management; or
             2335          (D) the leasing of real estate.
             2336          (3) A license under this chapter is not required for an individual registered to act as a
             2337      broker-dealer, agent, or investment adviser under the Utah and federal securities laws in the
             2338      sale or the offer for sale of real estate if:
             2339          (a) (i) the real estate is a necessary element of a "security" as that term is defined by the
             2340      Securities Act of 1933 and the Securities Exchange Act of 1934; and
             2341          (ii) the security is registered for sale in accordance with:
             2342          (A) the Securities Act of 1933; or
             2343          (B) Title 61, Chapter 1, Utah Uniform Securities Act; or
             2344          (b) (i) it is a transaction in a security for which a Form D, described in 17 C.F.R. Sec.
             2345      239.500, has been filed with the Securities and Exchange Commission pursuant to Regulation
             2346      D, Rule 506, 17 C.F.R. Sec. 230.506; and
             2347          (ii) the selling agent and the purchaser are not residents of this state.
             2348          Section 36. Section 61-2f-203 is amended to read:
             2349           61-2f-203. Licensing requirements.
             2350          (1) (a) Except as provided in Subsection (5), the commission shall determine the


             2351      qualifications and requirements of an applicant for:
             2352          (i) a principal broker license;
             2353          (ii) an associate broker license; or
             2354          (iii) a sales agent license.
             2355          (b) The division, with the concurrence of the commission, shall require and pass upon
             2356      proof necessary to determine the honesty, integrity, truthfulness, reputation, and competency of
             2357      each applicant for an initial license or for renewal of an existing license.
             2358          (c) (i) The division, with the concurrence of the commission, shall require an applicant
             2359      for:
             2360          (A) a sales agent license to complete an approved educational program consisting of
             2361      the number of hours designated by rule made by the commission with the concurrence of the
             2362      division, except that the rule may not require less than 120 hours; and
             2363          (B) an associate broker or a principal broker license to complete an approved
             2364      educational program consisting of the number of hours designated by rule made by the
             2365      commission with the concurrence of the division, except that the rule may not require less than
             2366      120 hours.
             2367          (ii) An hour required by this section means 50 minutes of instruction in each 60
             2368      minutes.
             2369          (iii) The maximum number of program hours available to an individual is eight hours
             2370      per day.
             2371          (d) The division, with the concurrence of the commission, shall require the applicant to
             2372      pass an examination approved by the commission covering:
             2373          (i) the fundamentals of:
             2374          (A) the English language;
             2375          (B) arithmetic;
             2376          (C) bookkeeping; and
             2377          (D) real estate principles and practices;
             2378          (ii) [the provisions of] this chapter;
             2379          (iii) the rules established by the commission; and
             2380          (iv) any other aspect of Utah real estate license law considered appropriate.
             2381          (e) (i) Three years' full-time experience as a sales agent or its equivalent is required


             2382      before an applicant may apply for, and secure a principal broker or associate broker license in
             2383      this state.
             2384          (ii) The commission shall establish by rule, made in accordance with Title 63G,
             2385      Chapter 3, Utah Administrative Rulemaking Act, the criteria by which the commission will
             2386      accept experience or special education in similar fields of business in lieu of the three years'
             2387      experience.
             2388          (2) (a) The division, with the concurrence of the commission, may require an applicant
             2389      to furnish a sworn statement setting forth evidence satisfactory to the division of the applicant's
             2390      reputation and competency as set forth by rule.
             2391          (b) The division shall require an applicant to provide the applicant's Social Security
             2392      number, which is a private record under Subsection 63G-2-302 (1)(h).
             2393          (3) (a) An individual who is not a resident of this state may be licensed in this state if
             2394      the person complies with [all the provisions of] this chapter.
             2395          (b) An individual who is not a resident of this state may be licensed as an associate
             2396      broker or sales agent in this state by:
             2397          (i) complying with [all the provisions of] this chapter; and
             2398          (ii) being employed or engaged as an independent contractor by or on behalf of a
             2399      principal broker who is licensed in this state, regardless of whether the principal broker is a
             2400      resident of this state.
             2401          (4) (a) [Except as provided in Subsection 61-2f-204 (1)(e)(vi), the] The division and
             2402      commission shall treat an application to be relicensed of an applicant whose real estate license
             2403      is revoked as an original application.
             2404          (b) In the case of an applicant for a new license as a principal broker or associate
             2405      broker, the applicant is not entitled to credit for experience gained before the revocation of a
             2406      real estate license.
             2407          (5) (a) Notwithstanding Subsection (1), the commission may delegate to the division
             2408      the authority to:
             2409          (i) review a class or category of applications for initial or renewed licenses;
             2410          (ii) determine whether an applicant meets the licensing criteria in Subsection (1); and
             2411          (iii) approve or deny a license application without concurrence by the commission.
             2412          (b) (i) If the commission delegates to the division the authority to approve or deny an


             2413      application without concurrence by the commission and the division denies an application for
             2414      licensure, the applicant who is denied licensure may petition the commission for de novo
             2415      review of the [denial of licensure] application.
             2416          (ii) An applicant who is denied licensure pursuant to this Subsection (5) may seek
             2417      agency review by the executive director only after the commission has reviewed the division's
             2418      denial of the applicant's application.
             2419          Section 37. Section 61-2f-204 is amended to read:
             2420           61-2f-204. Licensing fees and procedures -- Renewal fees and procedures.
             2421          (1) (a) Upon filing an application for an examination for a license under this chapter,
             2422      the applicant shall pay a nonrefundable fee as determined by the commission with the
             2423      concurrence of the division under Section 63J-1-504 for admission to the examination.
             2424          (b) An applicant for a principal broker, associate broker, or sales agent license shall
             2425      pay a nonrefundable fee as determined by the commission with the concurrence of the division
             2426      under Section 63J-1-504 for issuance of an initial license or license renewal.
             2427          (c) A license issued under this Subsection (1) shall be issued for a period of not less
             2428      than two years as determined by the division with the concurrence of the commission.
             2429          (d) (i) Any of the following applicants shall comply with this Subsection (1)(d):
             2430          (A) a new sales agent applicant;
             2431          (B) a principal broker applicant; or
             2432          (C) an associate broker applicant.
             2433          (ii) An applicant described in this Subsection (1)(d) shall:
             2434          (A) submit fingerprint cards in a form acceptable to the division at the time the license
             2435      application is filed; and
             2436          (B) consent to a criminal background check by the Utah Bureau of Criminal
             2437      Identification and the Federal Bureau of Investigation regarding the application.
             2438          (iii) The division shall request the Department of Public Safety to complete a Federal
             2439      Bureau of Investigation criminal background check for each applicant described in this
             2440      Subsection (1)(d) through the national criminal history system or any successor system.
             2441          (iv) The applicant shall pay the cost of the criminal background check and the
             2442      fingerprinting.
             2443          (v) Money paid to the division by an applicant for the cost of the criminal background


             2444      check is nonlapsing.
             2445          (e) (i) A license issued under Subsection (1)(d) is conditional, pending completion of
             2446      the criminal background check.
             2447          (ii) A license is immediately and automatically revoked if the criminal background
             2448      check discloses the applicant fails to accurately disclose a criminal history involving:
             2449          (A) the real estate industry; or
             2450          [(B) fraud;]
             2451          [(C) misrepresentation; or]
             2452          [(D) deceit.]
             2453          (B) a felony conviction on the basis of an allegation of fraud, misrepresentation, or
             2454      deceit.
             2455          (iii) If a criminal background check discloses that an applicant fails to accurately
             2456      disclose a criminal history other than one described in Subsection (1)(e)(ii), the division:
             2457          (A) shall review the application; and
             2458          (B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
             2459      Utah Administrative Rulemaking Act, may:
             2460          (I) place a condition on a license;
             2461          (II) place a restriction on a license;
             2462          (III) revoke a license; or
             2463          (IV) refer the application to the commission for a decision.
             2464          (iv) A person whose conditional license is automatically revoked under Subsection
             2465      (1)(e)(ii) or whose license is conditioned, restricted, or revoked under Subsection (1)(e)(iii)
             2466      may have a hearing after the action is taken to challenge the action. The hearing shall be
             2467      conducted in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             2468          (v) The director shall designate one of the following to act as the presiding officer in a
             2469      hearing described in Subsection (1)(e)(iv):
             2470          (A) the division; or
             2471          (B) the division with the concurrence of the commission.
             2472          (vi) The decision on whether relief from an action under this Subsection (1)(e) will be
             2473      granted shall be made by the presiding officer.
             2474          (vii) Relief from an automatic revocation under Subsection (1)(e)(ii) may be granted


             2475      only if:
             2476          (A) the criminal history upon which the division based the revocation:
             2477          (I) did not occur; or
             2478          (II) is the criminal history of another person;
             2479          (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
             2480          (II) the applicant has a reasonable good faith belief at the time of application that there
             2481      was no criminal history to be disclosed; or
             2482          (C) the division fails to follow the prescribed procedure for the revocation.
             2483          (viii) If a license is revoked or a revocation under this Subsection (1)(e) is upheld after
             2484      a hearing, the individual may not apply for a new license until at least 12 months after the day
             2485      on which the license is revoked.
             2486          (2) (a) (i) A license expires if it is not renewed on or before its expiration date.
             2487          (ii) As a condition of renewal, an active licensee shall demonstrate competence by
             2488      completing 18 hours of continuing education within a two-year renewal period subject to rules
             2489      made by the commission, with the concurrence of the division.
             2490          (iii) In making a rule described in Subsection (2)(c)(ii), the division and commission
             2491      shall consider:
             2492          (A) evaluating continuing education on the basis of competency, rather than course
             2493      time;
             2494          (B) allowing completion of courses in a significant variety of topic areas that the
             2495      division and commission determine are valuable in assisting an individual licensed under this
             2496      chapter to increase the individual's competency; and
             2497          (C) allowing completion of courses that will increase a licensee's professional
             2498      competency in the area of practice of the licensee.
             2499          (iv) The division may award credit to a licensee for a continuing education requirement
             2500      of this Subsection (2)(a) for a reasonable period of time upon a finding of reasonable cause,
             2501      including:
             2502          (A) military service; or
             2503          (B) if an individual is elected or appointed to government service, the individual's
             2504      government service during which the individual spends a substantial time addressing real estate
             2505      issues subject to conditions established by rule made in accordance with Title 63G, Chapter 3,


             2506      Utah Administrative Rulemaking Act.
             2507          (b) For a period of 30 days after the expiration date of a license, the license may be
             2508      reinstated upon:
             2509          (i) payment of a renewal fee and a late fee determined by the commission with the
             2510      concurrence of the division under Section 63J-1-504 ; and
             2511          (ii) providing proof acceptable to the division and the commission of the licensee
             2512      having:
             2513          (A) completed the hours of education required by Subsection (2)(a); or
             2514          (B) demonstrated competence as required under Subsection (2)(a).
             2515          (c) After the 30-day period described in Subsection (2)(b), and until six months after
             2516      the expiration date, the license may be reinstated by:
             2517          (i) paying a renewal fee and a late fee determined by the commission with the
             2518      concurrence of the division under Section 63J-1-504 ;
             2519          (ii) providing to the division proof of satisfactory completion of six hours of continuing
             2520      education:
             2521          (A) in addition to the requirements for a timely renewal; and
             2522          (B) on a subject determined by the commission by rule made in accordance with Title
             2523      63G, Chapter 3, Utah Administrative Rulemaking Act; and
             2524          (iii) providing proof acceptable to the division and the commission of the licensee
             2525      having:
             2526          (A) completed the hours of education required under Subsection (2)(a); or
             2527          (B) demonstrated competence as required under Subsection (2)(a).
             2528          (d) After the six-month period described in Subsection (2)(c), and until one year after
             2529      the expiration date, the license may be reinstated by:
             2530          (i) paying a renewal fee and a late fee determined by the commission with the
             2531      concurrence of the division under Section 63J-1-504 ;
             2532          (ii) providing to the division proof of satisfactory completion of 24 hours of continuing
             2533      education:
             2534          (A) in addition to the requirements for a timely renewal; and
             2535          (B) on a subject determined by the commission by rule made in accordance with Title
             2536      63G, Chapter 3, Utah Administrative Rulemaking Act; and


             2537          (iii) providing proof acceptable to the division and the commission of the licensee
             2538      having:
             2539          (A) completed the hours of education required by Subsection (2)(a); or
             2540          (B) demonstrated competence as required under Subsection (2)(a).
             2541          (e) The division shall relicense a person who does not renew that person's license
             2542      within one year as prescribed for an original application.
             2543          (f) Notwithstanding Subsection (2)(a), the division may extend the term of a license
             2544      that would expire under Subsection (2)(a) except for the extension if:
             2545          (i) (A) the person complies with the requirements of this section to renew the license;
             2546      and
             2547          [(ii)] (B) the renewal application remains pending at the time of the extension[, there is
             2548      pending under this chapter:]; or
             2549          [(A) the application for renewal of the license; or]
             2550          [(B)] (ii) at the time of the extension, there is pending a disciplinary action under this
             2551      chapter.
             2552          (3) (a) As a condition for the activation of an inactive license that was in an inactive
             2553      status at the time of the licensee's most recent renewal, the licensee shall supply the division
             2554      with proof of:
             2555          (i) successful completion of the respective sales agent or principal broker licensing
             2556      examination within six months [prior to] before applying to activate the license; or
             2557          (ii) the successful completion of the hours of continuing education that the licensee
             2558      would have been required to complete under Subsection (2)(a) if the license had been on active
             2559      status at the time of the licensee's most recent renewal.
             2560          (b) The commission may, in accordance with Title 63G, Chapter 3, Utah
             2561      Administrative Rulemaking Act, establish by rule:
             2562          (i) the nature or type of continuing education required for reactivation of a license; and
             2563          (ii) how long before reactivation the continuing education must be completed.
             2564          Section 38. Section 61-2f-206 is amended to read:
             2565           61-2f-206. Registration of entity or branch office -- Certification of education
             2566      providers and courses -- Specialized licenses.
             2567          (1) (a) An entity may not engage in an activity described in Section 61-2f-201 , unless it


             2568      is registered with the division.
             2569          (b) To register with the division under this Subsection (1), an entity shall submit to the
             2570      division:
             2571          (i) an application in a form required by the division;
             2572          (ii) evidence of an affiliation with a principal broker;
             2573          (iii) evidence that the entity is registered and in good standing with the Division of
             2574      Corporations and Commercial Code; and
             2575          (iv) a registration fee established by the commission with the concurrence of the
             2576      division under Section 63J-1-504 .
             2577          (2) (a) A principal broker shall register with the division each of the principal broker's
             2578      branch offices.
             2579          (b) To register a branch office with the division under this Subsection (2), a principal
             2580      broker shall submit to the division:
             2581          (i) an application in a form required by the division; and
             2582          (ii) a registration fee established by the commission with the concurrence of the
             2583      division under Section 63J-1-504 .
             2584          (3) (a) In accordance with rules made by the commission, the division shall certify:
             2585          (i) a real estate school;
             2586          (ii) a course provider; or
             2587          (iii) an instructor.
             2588          (b) In accordance with rules made by the commission, and with the concurrence of the
             2589      commission, the division shall certify a continuing education course that is required under this
             2590      [section] chapter.
             2591          (4) (a) Except as provided by rule, a principal broker may not be responsible for more
             2592      than one registered entity at the same time.
             2593          (b) (i) In addition to issuing a principal broker license, associate broker license, or sales
             2594      agent license authorizing the performance of an act set forth in Section 61-2f-201 , the division
             2595      may issue a specialized sales license or specialized property management license with the
             2596      scope of practice limited to the specialty.
             2597          (ii) An individual may hold a specialized license in addition to a license as a principal
             2598      broker, associate broker, or a sales agent.


             2599          (iii) The commission may adopt rules pursuant to Title 63G, Chapter 3, Utah
             2600      Administrative Rulemaking Act, for the administration of this Subsection (4), including:
             2601          (A) prelicensing and postlicensing education requirements;
             2602          (B) examination requirements;
             2603          (C) affiliation with real estate brokerages or property management companies; and
             2604          (D) other licensing procedures.
             2605          Section 39. Section 61-2f-301 is amended to read:
             2606           61-2f-301. Reporting requirements.
             2607          (1) A licensee shall notify the division of the following by sending the division a
             2608      signed statement within 10 business days of:
             2609          [(1)] (a) (i) a conviction of a [criminal offense] felony, class A misdemeanor, or class
             2610      B misdemeanor;
             2611          [(b)] (ii) the entry of a plea in abeyance to a [criminal offense] felony, class A
             2612      misdemeanor, or class B misdemeanor; or
             2613          [(c)] (iii) the potential resolution of a [criminal case] felony, class A misdemeanor, or
             2614      class B misdemeanor by:
             2615          [(i)] (A) a diversion agreement; or
             2616          [(ii)] (B) another agreement under which a criminal charge is held in suspense for a
             2617      period of time;
             2618          [(2)] (b) filing a personal or brokerage bankruptcy;
             2619          [(3)] (c) the suspension, revocation, surrender, cancellation, or denial of a license or
             2620      registration of the licensee that is necessary to engage in an occupation or profession,
             2621      regardless of whether the license or registration is issued by this state or another jurisdiction; or
             2622          [(4)] (d) the entry of a cease and desist order or a temporary or permanent injunction:
             2623          [(a)] (i) against the licensee by a court or administrative agency; and
             2624          [(b)] (ii) on the basis of:
             2625          [(i)] (A) conduct or a practice involving the business of real estate; or
             2626          [(ii)] (B) conduct involving fraud, misrepresentation, or deceit.
             2627          (2) The commission, with the concurrence of the director, shall enforce the reporting
             2628      requirement under this section pursuant to Section 61-2f-404 .
             2629          Section 40. Section 61-2f-401 is amended to read:


             2630           61-2f-401. Grounds for disciplinary action.
             2631          The following acts are unlawful for a person required to be licensed under this chapter:
             2632          (1) (a) making a substantial misrepresentation;
             2633          (b) making an intentional misrepresentation;
             2634          (c) pursuing a continued and flagrant course of misrepresentation;
             2635          (d) making a false representation or promise through an agent, sales agent, advertising,
             2636      or otherwise; or
             2637          (e) making a false representation or promise of a character likely to influence,
             2638      persuade, or induce;
             2639          (2) acting for more than one party in a transaction without the informed consent of [all]
             2640      the parties;
             2641          (3) (a) acting as an associate broker or sales agent while not affiliated with a principal
             2642      broker;
             2643          (b) representing or attempting to represent a principal broker other than the principal
             2644      broker with whom the person is affiliated; or
             2645          (c) representing as sales agent or having a contractual relationship similar to that of
             2646      sales agent with a person other than a principal broker;
             2647          (4) (a) failing, within a reasonable time, to account for or to remit money that belongs
             2648      to another and comes into the person's possession;
             2649          (b) commingling money described in Subsection (4)(a) with the person's own money;
             2650      or
             2651          (c) diverting money described in Subsection (4)(a) from the purpose for which the
             2652      money is received;
             2653          (5) paying or offering to pay valuable consideration, as defined by the commission, to a
             2654      person not licensed under this chapter, except that valuable consideration may be shared:
             2655          (a) with a principal broker of another jurisdiction; or
             2656          (b) as provided under:
             2657          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act;
             2658          (ii) Title 16, Chapter 11, Professional Corporation Act; or
             2659          (iii) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act;
             2660          (6) being incompetent to act as a principal broker, associate broker, or sales agent in


             2661      such manner as to safeguard the interests of the public;
             2662          (7) failing to voluntarily furnish a copy of a document to [all] the parties before and
             2663      after the execution of a document;
             2664          (8) failing to keep and make available for inspection by the division a record of each
             2665      transaction, including:
             2666          (a) the names of buyers and sellers or lessees and lessors;
             2667          (b) the identification of real estate;
             2668          (c) the sale or rental price;
             2669          (d) money received in trust;
             2670          (e) agreements or instructions from buyers and sellers or lessees and lessors; and
             2671          (f) any other information required by rule;
             2672          (9) failing to disclose, in writing, in the purchase, sale, or rental of real estate, whether
             2673      the purchase, sale, or rental is made for that person or for an undisclosed principal;
             2674          (10) being convicted of a criminal offense involving moral turpitude within five years
             2675      of the most recent application:
             2676          (a) regardless of whether the criminal offense is related to real estate; and
             2677          (b) including:
             2678          (i) a conviction based upon a plea of nolo contendere; or
             2679          (ii) a plea held in abeyance to a criminal offense involving moral turpitude;
             2680          (11) advertising the availability of real estate or the services of a licensee in a false,
             2681      misleading, or deceptive manner;
             2682          (12) in the case of a principal broker or a licensee who is a branch manager, failing to
             2683      exercise reasonable supervision over the activities of the principal broker's or branch manager's
             2684      licensed or unlicensed staff;
             2685          (13) violating or disregarding:
             2686          (a) this chapter;
             2687          (b) an order of the commission; or
             2688          (c) the rules adopted by the commission and the division;
             2689          (14) breaching a fiduciary duty owed by a licensee to the licensee's principal in a real
             2690      estate transaction;
             2691          (15) any other conduct which constitutes dishonest dealing;


             2692          (16) unprofessional conduct as defined by statute or rule;
             2693          (17) having one of the following suspended, revoked, surrendered, or cancelled on the
             2694      basis of misconduct in a professional capacity that relates to character, honesty, integrity, or
             2695      truthfulness:
             2696          (a) a real estate license, registration, or certificate issued by another jurisdiction; or
             2697          (b) another license, registration, or certificate to engage in an occupation or profession
             2698      issued by this state or another jurisdiction;
             2699          (18) failing to respond to a request by the division in an investigation authorized under
             2700      this chapter, including:
             2701          (a) failing to respond to a subpoena;
             2702          (b) withholding evidence; or
             2703          (c) failing to produce documents or records;
             2704          (19) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             2705          (a) providing a title insurance product or service without the approval required by
             2706      Section 31A-2-405 ; or
             2707          (b) knowingly providing false or misleading information in the statement required by
             2708      Subsection 31A-2-405 (2);
             2709          (20) violating an independent contractor agreement between a principal broker and a
             2710      sales agent or associate broker as evidenced by a final judgment of a court;
             2711          (21) (a) engaging in a foreclosure rescue if not licensed under this chapter;
             2712          (b) engaging in an act of loan modification assistance that requires licensure as a
             2713      mortgage officer under Chapter 2c, Utah Residential Mortgage Practices and Licensing Act,
             2714      without being licensed under that chapter;
             2715          (c) engaging in an act of foreclosure rescue without entering into a written agreement
             2716      specifying what one or more acts of foreclosure rescue will be completed;
             2717          [(c)] (d) requesting or requiring a person to pay a fee [if:] for a foreclosure rescue
             2718      service before obtaining a written agreement:
             2719          [(i) the person is required to pay the fee before entering into a written agreement
             2720      specifying what one or more acts of foreclosure rescue will be completed if the fee is paid; or]
             2721          [(ii) in a case when the financing that is the subject of the foreclosure rescue is
             2722      foreclosed within one year from the day on which the person enters into a written agreement,


             2723      the person is required to forfeit the fee for any reason;]
             2724          (i) between the person and the person's lender or servicer; and
             2725          (ii) by which title to the residential real estate at risk of foreclosure will be transferred;
             2726          [(d)] (e) inducing a person who is at risk of foreclosure to hire the licensee to engage in
             2727      an act of foreclosure rescue by:
             2728          (i) suggesting to the person that the licensee has a special relationship with the person's
             2729      lender or loan servicer; or
             2730          (ii) falsely representing or advertising that the licensee is acting on behalf of:
             2731          (A) a government agency;
             2732          (B) the person's lender or loan servicer; or
             2733          (C) a nonprofit or charitable institution; or
             2734          [(e)] (f) recommending or participating in a foreclosure rescue that requires a person
             2735      to:
             2736          (i) transfer title to real [property] estate to the licensee or to a [third party] third-party
             2737      with whom the licensee has a business relationship or financial interest;
             2738          (ii) make a mortgage payment to a person other than the person's loan servicer; or
             2739          (iii) refrain from contacting the person's:
             2740          (A) lender;
             2741          (B) loan servicer;
             2742          (C) attorney;
             2743          (D) credit counselor; or
             2744          (E) housing counselor; or
             2745          (22) for an agreement for foreclosure rescue entered into on or after May 11, 2010,
             2746      engaging in an act of foreclosure rescue without offering in writing to the person entering into
             2747      the agreement for foreclosure rescue a right to cancel the agreement within three business days
             2748      after the day on which the person enters the agreement.
             2749          Section 41. Section 61-2g-101 , which is renumbered from Section 61-2b-1 is
             2750      renumbered and amended to read:
             2751     
CHAPTER 2g. REAL ESTATE APPRAISER LICENSING AND CERTIFICATION

             2752     
ACT

             2753     
Part 1. General Provisions


             2754           [61-2b-1].     61-2g-101. Title.
             2755          This chapter is known as the "Real Estate Appraiser Licensing and Certification Act."
             2756          Section 42. Section 61-2g-102 , which is renumbered from Section 61-2b-2 is
             2757      renumbered and amended to read:
             2758           [61-2b-2].     61-2g-102. Definitions.
             2759          (1) As used in this chapter:
             2760          (a) (i) "Appraisal" means an unbiased analysis, opinion, or conclusion relating to the
             2761      nature, quality, value, or utility of a specified interest in, or aspect of, identified real estate or
             2762      identified real property.
             2763          (ii) An appraisal is classified by the nature of the assignment as a valuation appraisal,
             2764      an analysis assignment, or a review assignment in accordance with the following definitions:
             2765          (A) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that
             2766      relates to the nature, quality, or utility of identified real estate or identified real property.
             2767          (B) "Review assignment" means an unbiased analysis, opinion, or conclusion that
             2768      forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis
             2769      assignment.
             2770          (C) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
             2771      estimates the value of an identified parcel of real estate or identified real property at a particular
             2772      point in time.
             2773          (b) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as
             2774      an Illinois not-for-profit corporation on November 30, 1987.
             2775          (c) (i) "Appraisal report" means a communication, written or oral, of an appraisal.
             2776          (ii) An appraisal report is classified by the nature of the assignment as a valuation
             2777      report, analysis report, or review report in accordance with the definitions provided in
             2778      Subsection (1)(a)(ii).
             2779          (iii) The testimony of a person relating to the person's analyses, conclusions, or
             2780      opinions concerning identified real estate or identified real property is considered to be an oral
             2781      appraisal report.
             2782          (d) "Appraisal Qualification Board" means the Appraisal Qualification Board of the
             2783      Appraisal Foundation.
             2784          (e) "Board" means the Real Estate Appraiser Licensing and Certification Board that is


             2785      established in Section [ 61-2b-7 ] 61-2g-204 .
             2786          (f) "Certified appraisal report" means a written or oral appraisal report that is certified
             2787      by a state-certified general appraiser or state-certified residential appraiser.
             2788          (g) "Concurrence" means that the entities that are given a concurring role jointly agree
             2789      to an action.
             2790          (h) (i) (A) "Consultation service" means an engagement to provide a real estate
             2791      valuation service analysis, opinion, conclusion, or other service that does not fall within the
             2792      definition of appraisal.
             2793          (B) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
             2794      review assignment.
             2795          (ii) Regardless of the intention of the client or employer, if a person prepares an
             2796      unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
             2797      be an appraisal and not a consultation service.
             2798          (i) "Contingent fee" means a fee or other form of compensation, payment of which is
             2799      dependent on or conditioned by:
             2800          (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
             2801      performing the analysis, opinion, or conclusion; or
             2802          (ii) achieving a result specified by the person requesting the analysis, opinion, or
             2803      conclusion.
             2804          (j) "Division" means the Division of Real Estate of the Department of Commerce.
             2805          (k) "Federally related transaction" means a real estate related transaction that is
             2806      required by federal law or by federal regulation to be supported by an appraisal prepared by:
             2807          (i) a state-licensed appraiser; or
             2808          (ii) a state-certified appraiser.
             2809          (l) "Real estate" means an identified parcel or tract of land including improvements if
             2810      any.
             2811          (m) "Real estate appraisal activity" means the act or process of making an appraisal of
             2812      real estate or real property and preparing an appraisal report.
             2813          (n) "Real estate related transaction" means:
             2814          (i) the sale, lease, purchase, investment in, or exchange of real property or an interest in
             2815      real property, or the financing of such a transaction;


             2816          (ii) the refinancing of real property or an interest in real property; or
             2817          (iii) the use of real property or an interest in real property as security for a loan or
             2818      investment, including mortgage-backed securities.
             2819          (o) "Real property" means one or more defined interests, benefits, or rights inherent in
             2820      the ownership of real estate.
             2821          (p) "State-certified general appraiser" means a person who holds a current, valid
             2822      certification as a state-certified general appraiser issued under this chapter.
             2823          (q) "State-certified residential appraiser" means a person who holds a current, valid
             2824      certification as a state-certified residential real estate appraiser issued under this chapter.
             2825          (r) "State-licensed appraiser" means a person who holds a current, valid license as a
             2826      state-licensed appraiser issued under this chapter.
             2827          (s) "Trainee" means an individual who:
             2828          (i) does not hold an appraiser license or appraiser certification issued under this
             2829      chapter;
             2830          (ii) works under the direct supervision of a state-certified appraiser to earn experience
             2831      for licensure; and
             2832          (iii) is registered as a trainee under this chapter.
             2833          (t) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
             2834      conclusion relating to the nature, quality, value, or utility of identified real estate or identified
             2835      real property that is prepared by a person who is employed or retained to act, or would be
             2836      perceived by third parties or the public as acting, as a disinterested [third party] third-party in
             2837      rendering the analysis, opinion, or conclusion.
             2838          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             2839      meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
             2840      Utah Administrative Rulemaking Act.
             2841          (b) If a term not defined in this section is not defined by rule, the term shall have the
             2842      meaning commonly accepted in the business community.
             2843          Section 43. Section 61-2g-103 , which is renumbered from Section 61-2b-25 is
             2844      renumbered and amended to read:
             2845           [61-2b-25].     61-2g-103. Other law unaffected.
             2846          This chapter may not be considered to prohibit a person approved, licensed, certified, or


             2847      registered under this chapter from engaging in the practice of real estate appraising as a
             2848      professional corporation or a limited liability company in accordance with:
             2849          (1) Title 16, Chapter 11, Professional Corporation Act; or
             2850          (2) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act.
             2851          Section 44. Section 61-2g-201 , which is renumbered from Section 61-2b-6 is
             2852      renumbered and amended to read:
             2853     
Part 2. Division and Board

             2854           [61-2b-6].     61-2g-201. Duties and powers of division in general.
             2855          (1) The division shall administer and enforce this chapter.
             2856          [(1)] (2) The division has the following powers and duties [listed in this Subsection
             2857      (1).]:
             2858          (a) The division shall:
             2859          (i) receive an application for licensing, certification, or registration;
             2860          (ii) establish appropriate administrative procedures for the processing of an application
             2861      for licensure, certification, or registration;
             2862          (iii) issue a license or certification to a qualified applicant pursuant to this chapter; and
             2863          (iv) register an individual who applies and qualifies for registration as a trainee under
             2864      this chapter.
             2865          [(b) (i) The division shall require an individual to register with the division as a trainee
             2866      before the individual acts in the capacity of a trainee earning experience for licensure.]
             2867          [(ii) Subject to Subsection (4), the board shall adopt rules in accordance with Title
             2868      63G, Chapter 3, Utah Administrative Rulemaking Act, for:]
             2869          [(A) the trainee registration required by this Subsection (1)(b); and]
             2870          [(B) renewal of the trainee registration required by this Subsection (1)(b).]
             2871          [(c)] (b) The division shall hold public hearings under the direction of the board.
             2872          [(d)] (c) The division may:
             2873          (i) solicit bids and enter into contracts with one or more educational testing services or
             2874      organizations for the preparation of a bank of questions and answers; and
             2875          (ii) administer or contract for the administration of licensing and certification
             2876      examinations as may be required to carry out the division's responsibilities under this chapter.
             2877          [(e)] (d) The division shall provide administrative assistance to the board by providing


             2878      to the board the facilities, equipment, supplies, and personnel that are required to enable the
             2879      board to carry out the board's responsibilities under this chapter.
             2880          [(f)] (e) The division shall assist the board in improving the quality of the continuing
             2881      education available to a person licensed, certified, or registered under this chapter.
             2882          [(g)] (f) The division shall assist the board with respect to the proper interpretation or
             2883      explanation of the Uniform Standards of Professional Appraisal Practice as required by Section
             2884      [ 61-2b-27 ] 61-2g-403 when an interpretation or explanation becomes necessary in the
             2885      enforcement of this chapter.
             2886          [(h) The division shall establish fees in accordance with Section 63J-1-504 :]
             2887          [(i) for processing:]
             2888          [(A) an application for licensing, certification, or registration; and]
             2889          [(B) approval of an expert witness; and]
             2890          [(ii) for any other function required or permitted by this chapter.]
             2891          [(i) If a person pays a fee or costs to the division with a negotiable instrument and the
             2892      negotiable instrument is not honored for payment:]
             2893          [(i) the transaction for which the payment is submitted is voidable by the division;]
             2894          [(ii) the division may reverse the transaction if payment of the applicable fee or costs is
             2895      not received in full; and]
             2896          [(iii) the person's license, certification, or registration is automatically suspended:]
             2897          [(A) beginning the day on which the payment is due; and]
             2898          [(B) ending the day on which payment is made in full.]
             2899          [(j) The division may:]
             2900          [(i) investigate a complaint against:]
             2901          [(A) a person licensed, certified, or registered under this chapter; or]
             2902          [(B) a person required to be licensed, certified, or registered under this chapter;]
             2903          [(ii) subpoena a witness;]
             2904          [(iii) subpoena the production of a book, paper, document, record, contract, or
             2905      evidence;]
             2906          [(iv) administer an oath; and]
             2907          [(v) take testimony and receive evidence concerning a matter within the division's
             2908      jurisdiction.]


             2909          [(k)] (g) The division may:
             2910          (i) promote research and conduct studies relating to the profession of real estate
             2911      appraising; and
             2912          (ii) sponsor real estate appraisal educational activities.
             2913          [(l)] (h) The division shall adopt, with the concurrence of the board, rules for the
             2914      administration of this chapter pursuant to Title 63G, Chapter 3, Utah Administrative
             2915      Rulemaking Act, that are not inconsistent with this chapter or the constitution and laws of this
             2916      state or of the United States.
             2917          [(m)] (i) The division shall employ an appropriate staff to investigate allegations that a
             2918      person required to be licensed, certified, or registered under this chapter fails to comply with
             2919      this chapter.
             2920          [(n)] (j) The division may employ other professional, clerical, and technical staff as
             2921      may be necessary to properly administer the work of the division under this chapter.
             2922          [(o)] (k) (i) Upon request, the division shall make available, either directly or through a
             2923      [third party] third-party, a list of the names and addresses of the persons licensed, registered, or
             2924      certified by the division under this chapter.
             2925          (ii) A person who requests a list under this Subsection (1)[(o)](k) shall pay the costs
             2926      incurred by the division to make the list available.
             2927          [(2) (a) The division shall approve an expert witness who is not otherwise licensed or
             2928      certified under this chapter to appear in an administrative or judicial tax proceeding to provide
             2929      evidence related to the valuation of real property that is assessed by the State Tax Commission,
             2930      if the:]
             2931          [(i) approval is limited to a specific proceeding;]
             2932          [(ii) approval is valid until the proceeding becomes final;]
             2933          [(iii) applicant pays to the division an approval fee set by the division in accordance
             2934      with Section 63J-1-504 ;]
             2935          [(iv) applicant provides the applicant's name, address, occupation, and professional
             2936      credentials; and]
             2937          [(v) applicant provides a notarized statement that:]
             2938          [(A) the applicant is competent to render an appraisal and to testify as an expert
             2939      witness in the proceeding; and]


             2940          [(B) the appraisal and testimony to be offered shall be in accordance with the Uniform
             2941      Standards of Professional Appraisal Practice adopted by the board.]
             2942          [(b) Subsection (2)(a) applies to an administrative or judicial property tax proceeding
             2943      related to the valuation of real property that is assessed by the State Tax Commission.]
             2944          [(3)] (2) (a) If the conditions of Subsection [(3)] (2)(b) are met, the division is immune
             2945      from any civil action or criminal prosecution for initiating or assisting in a lawful investigation
             2946      of an act of, or participating in a disciplinary proceeding concerning:
             2947          (i) a person required to be licensed, certified, or registered pursuant to this chapter; or
             2948          (ii) a person approved as an expert witness pursuant to this chapter.
             2949          (b) This Subsection [(3)] (2) applies if the division takes the action:
             2950          (i) without malicious intent; and
             2951          (ii) in the reasonable belief that the action is taken pursuant to the powers and duties
             2952      vested in the division under this chapter.
             2953          [(4) (a) An individual applying to register as a trainee under this chapter shall:]
             2954          [(i) submit a fingerprint card in a form acceptable to the division at the time of
             2955      applying for registration; and]
             2956          [(ii) consent to a criminal background check by:]
             2957          [(A) the Utah Bureau of Criminal Identification; and]
             2958          [(B) the Federal Bureau of Investigation.]
             2959          [(b) The division shall request the Department of Public Safety to complete a Federal
             2960      Bureau of Investigation criminal background check for an applicant through a national criminal
             2961      history system.]
             2962          [(c) The applicant shall pay the cost of:]
             2963          [(i) the fingerprinting required by this section; and]
             2964          [(ii) the criminal background check required by this section.]
             2965          [(d) (i) A registration as a trainee under this chapter is conditional pending completion
             2966      of the criminal background check required by this Subsection (4).]
             2967          [(ii) A registration is immediately and automatically revoked if a criminal background
             2968      check discloses that the applicant fails to accurately disclose a criminal history involving:]
             2969          [(A) the appraisal industry;]
             2970          [(B) fraud;]


             2971          [(C) misrepresentation; or]
             2972          [(D) deceit.]
             2973          [(iii) If a criminal background check discloses that an applicant fails to accurately
             2974      disclose a criminal history other than one described in Subsection (4)(d)(ii), the division:]
             2975          [(A) shall review the application; and]
             2976          [(B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
             2977      Utah Administrative Rulemaking Act, may:]
             2978          [(I) place one or more conditions on a registration;]
             2979          [(II) place one or more restrictions on a registration;]
             2980          [(III) revoke a registration; or]
             2981          [(IV) refer the application to the board for a decision.]
             2982          [(iv) An individual whose conditional registration is automatically revoked under
             2983      Subsection (4)(d)(ii) or whose registration is conditioned, restricted, or revoked under
             2984      Subsection (4)(d)(iii) may appeal the action in a hearing conducted by the board:]
             2985          [(A) after the action is taken; and]
             2986          [(B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.]
             2987          [(v) The board may delegate to the division or an administrative law judge the
             2988      authority to conduct a hearing described in Subsection (4)(d)(iv).]
             2989          [(vi) Relief from an automatic revocation under Subsection (4)(d)(ii) may be granted
             2990      only if:]
             2991          [(A) the criminal history upon which the division bases the revocation:]
             2992          [(I) did not occur; or]
             2993          [(II) is the criminal history of another person;]
             2994          [(B) (I) the revocation is based on a failure to accurately disclose a criminal history;
             2995      and]
             2996          [(II) the applicant has a reasonable good faith belief at the time of application that there
             2997      was no criminal history to be disclosed; or]
             2998          [(C) the division fails to follow the prescribed procedure for the revocation.]
             2999          [(e) If a registration is revoked or a revocation is upheld after a hearing described in
             3000      Subsection (4)(d)(iv), the individual may not apply for a new registration for a period of 12
             3001      months after the day on which the registration is revoked.]


             3002          [(f) The board may delegate to the division the authority to make a decision on whether
             3003      relief from a revocation should be granted.]
             3004          [(g) Money paid by an applicant for the cost of the criminal background check is
             3005      nonlapsing.]
             3006          Section 45. Section 61-2g-202 , which is renumbered from Section 61-2b-37 is
             3007      renumbered and amended to read:
             3008           [61-2b-37].     61-2g-202. Division service fees -- Federal registry fees.
             3009          (1) The division, with the concurrence of the board, shall establish and collect fees in
             3010      accordance with Section 63J-1-504 for its services under this chapter.
             3011          (2) The division shall collect the annual registry fee established by the Federal
             3012      Financial Institutions Examinations Council from those certificate holders who seek to perform
             3013      appraisals in federally related transactions. The division shall transmit the fees to the federal
             3014      Appraisal Subcommittee at least annually.
             3015          (3) If a person pays a fee or costs to the division with a negotiable instrument or any
             3016      other payment method that is not honored:
             3017          (a) the transaction for which the payment is submitted is voidable by the division;
             3018          (b) the division may reverse the transaction if payment of the applicable fee or costs is
             3019      not received in full; and
             3020          (c) the person's license, certification, or registration is automatically suspended:
             3021          (i) beginning the day on which the payment is due; and
             3022          (ii) ending the day on which payment is made in full.
             3023          Section 46. Section 61-2g-203 , which is renumbered from Section 61-2b-38 is
             3024      renumbered and amended to read:
             3025           [61-2b-38].     61-2g-203. Division to publish roster of appraisers.
             3026          (1) The division shall prepare and issue at least once each calendar year a roster of
             3027      appraisers containing the information required by the Federal Financial Institutions
             3028      Examination Council. The division shall transmit the roster to the Federal Financial
             3029      Institutions Examinations Council at least annually.
             3030          (2) The division may, upon payment of a fee established by the division in accordance
             3031      with Section 63J-1-504 , issue to a person a verified history of a person:
             3032          (a) licensed, certified, or registered under this chapter; or


             3033          (b) previously registered, licensed, or certified under this chapter.
             3034          Section 47. Section 61-2g-204 , which is renumbered from Section 61-2b-7 is
             3035      renumbered and amended to read:
             3036           [61-2b-7].     61-2g-204. Real Estate Appraiser Licensing and Certification
             3037      Board.
             3038          (1) (a) There is established a Real Estate Appraiser Licensing and Certification Board
             3039      [which shall consist] that consists of five regular members as follows:
             3040          (i) one state-licensed or state-certified appraiser who may be either a residential or
             3041      general licensee or certificate holder;
             3042          (ii) one state-certified residential appraiser;
             3043          (iii) one state-certified general appraiser;
             3044          (iv) one member who is certified as either a state-certified residential appraiser or a
             3045      state-certified general appraiser; and
             3046          (v) one member of the general public.
             3047          (b) A state-licensed or state-certified appraiser may be appointed as an alternate
             3048      member of the board.
             3049          (c) The governor shall appoint all members of the board with the consent of the Senate.
             3050          (2) (a) Except as required by Subsection (2)(b), as terms of current board members
             3051      expire, the governor shall appoint each new member or reappointed member to a four-year
             3052      term beginning on July 1.
             3053