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H.B. 191 Enrolled

             1     

REAL ESTATE AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gage Froerer

             5     
Senate Sponsor: Todd Weiler

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to real estate.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies provisions relating to timeshare and camp resort projects;
             13          .    modifies provisions of the Utah Mortgage Practices and Licensing Act;
             14          .    modifies provisions of the Appraisal Management Company Registration and
             15      Regulation Act;
             16          .    modifies provisions of the Real Estate Licensing and Practices Act; and
             17          .    modifies provisions of the Real Estate Appraiser Licensing and Certification Act.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill provides effective dates.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          57-8-3, as last amended by Laws of Utah 2011, Chapter 355
             25          57-8-27, as last amended by Laws of Utah 2007, Chapters 268 and 329
             26          57-19-2, as last amended by Laws of Utah 1989, Chapter 225
             27          57-19-6, as last amended by Laws of Utah 2000, Chapter 86
             28          57-19-8, as last amended by Laws of Utah 1991, Chapter 165
             29          57-19-12, as enacted by Laws of Utah 1987, Chapter 73


             30          57-19-13, as enacted by Laws of Utah 1987, Chapter 73
             31          57-19-26, as enacted by Laws of Utah 1987, Chapter 73
             32          61-2c-102, as last amended by Laws of Utah 2011, Chapter 289
             33          61-2c-103, as last amended by Laws of Utah 2011, Chapter 289
             34          61-2c-106, as last amended by Laws of Utah 2010, Chapter 379
             35          61-2c-203, as last amended by Laws of Utah 2011, Chapter 289
             36          61-2c-204.1, as last amended by Laws of Utah 2010, Chapter 379
             37          61-2c-205, as last amended by Laws of Utah 2011, Chapter 289
             38          61-2c-206, as last amended by Laws of Utah 2010, Chapter 379
             39          61-2c-209, as enacted by Laws of Utah 2010, Chapter 379
             40          61-2c-301, as last amended by Laws of Utah 2011, Chapter 289
             41          61-2c-302, as last amended by Laws of Utah 2011, Chapter 289
             42          61-2c-404, as last amended by Laws of Utah 2010, Chapter 379
             43          61-2e-104, as enacted by Laws of Utah 2009, Chapter 269
             44          61-2e-201, as enacted by Laws of Utah 2009, Chapter 269
             45          61-2e-204, as last amended by Laws of Utah 2011, Chapter 289
             46          61-2e-307, as last amended by Laws of Utah 2011, Chapter 289
             47          61-2e-401, as last amended by Laws of Utah 2011, Chapter 289
             48          61-2f-102, as last amended by Laws of Utah 2011, Chapter 289
             49          61-2f-203, as last amended by Laws of Utah 2011, Chapter 289
             50          61-2f-301, as last amended by Laws of Utah 2011, Chapter 289
             51          61-2f-401 (Superseded 07/01/12), as last amended by Laws of Utah 2011, Chapter 289
             52          61-2f-401 (Effective 07/01/12), as last amended by Laws of Utah 2011, Chapters 289
             53      and 353
             54          61-2g-102, as renumbered and amended by Laws of Utah 2011, Chapter 289
             55          61-2g-103 (Superseded 07/01/12), as renumbered and amended by Laws of Utah 2011,
             56      Chapter 289
             57          61-2g-103 (Effective 07/01/12), as last amended by Laws of Utah 2011, Chapter 353


             58      and renumbered and amended by Laws of Utah 2011, Chapter 289
             59          61-2g-201, as renumbered and amended by Laws of Utah 2011, Chapter 289
             60          61-2g-301, as renumbered and amended by Laws of Utah 2011, Chapter 289
             61          61-2g-304, as renumbered and amended by Laws of Utah 2011, Chapter 289
             62          61-2g-306, as renumbered and amended by Laws of Utah 2011, Chapter 289
             63          61-2g-308, as renumbered and amended by Laws of Utah 2011, Chapter 289
             64          61-2g-312, as renumbered and amended by Laws of Utah 2011, Chapter 289
             65          61-2g-315, as renumbered and amended by Laws of Utah 2011, Chapter 289
             66          61-2g-402, as renumbered and amended by Laws of Utah 2011, Chapter 289
             67          61-2g-403, as renumbered and amended by Laws of Utah 2011, Chapter 289
             68          61-2g-502, as renumbered and amended by Laws of Utah 2011, Chapter 289
             69          61-2g-503, as renumbered and amended by Laws of Utah 2011, Chapter 289
             70      REPEALS:
             71          61-2g-303, as enacted by Laws of Utah 2011, Chapter 289
             72     
             73      Be it enacted by the Legislature of the state of Utah:
             74          Section 1. Section 57-8-3 is amended to read:
             75           57-8-3. Definitions.
             76          As used in this chapter:
             77          (1) "Assessment" means any charge imposed by the association, including:
             78          (a) common expenses on or against a unit owner pursuant to the provisions of the
             79      declaration, bylaws, or this chapter; and
             80          (b) an amount that an association of unit owners assesses to a unit owner under
             81      Subsection 57-8-43 (9)(h).
             82          (2) "Association of unit owners" means all of the unit owners:
             83          (a) acting as a group in accordance with the declaration and bylaws; or
             84          (b) organized as a legal entity in accordance with the declaration.
             85          (3) "Building" means a building, containing units, and comprising a part of the


             86      property.
             87          (4) "Common areas and facilities" unless otherwise provided in the declaration or
             88      lawful amendments to the declaration means:
             89          (a) the land included within the condominium project, whether leasehold or in fee
             90      simple;
             91          (b) the foundations, columns, girders, beams, supports, main walls, roofs, halls,
             92      corridors, lobbies, stairs, stairways, fire escapes, entrances, and exits of the building;
             93          (c) the basements, yards, gardens, parking areas, and storage spaces;
             94          (d) the premises for lodging of janitors or persons in charge of the property;
             95          (e) installations of central services such as power, light, gas, hot and cold water,
             96      heating, refrigeration, air conditioning, and incinerating;
             97          (f) the elevators, tanks, pumps, motors, fans, compressors, ducts, and in general all
             98      apparatus and installations existing for common use;
             99          (g) such community and commercial facilities as may be provided for in the
             100      declaration; and
             101          (h) all other parts of the property necessary or convenient to its existence, maintenance,
             102      and safety, or normally in common use.
             103          (5) "Common expenses" means:
             104          (a) all sums lawfully assessed against the unit owners;
             105          (b) expenses of administration, maintenance, repair, or replacement of the common
             106      areas and facilities;
             107          (c) expenses agreed upon as common expenses by the association of unit owners; and
             108          (d) expenses declared common expenses by this chapter, or by the declaration or the
             109      bylaws.
             110          (6) "Common profits," unless otherwise provided in the declaration or lawful
             111      amendments to the declaration, means the balance of all income, rents, profits, and revenues
             112      from the common areas and facilities remaining after the deduction of the common expenses.
             113          (7) "Condominium" means the ownership of a single unit in a multiunit project


             114      together with an undivided interest in common in the common areas and facilities of the
             115      property.
             116          (8) "Condominium plat" means a plat or plats of survey of land and units prepared in
             117      accordance with Section 57-8-13 .
             118          (9) "Condominium project" means a real estate condominium project; a plan or project
             119      whereby two or more units, whether contained in existing or proposed apartments, commercial
             120      or industrial buildings or structures, or otherwise, are separately offered or proposed to be
             121      offered for sale. Condominium project also means the property when the context so requires.
             122          (10) "Condominium unit" means a unit together with the undivided interest in the
             123      common areas and facilities appertaining to that unit. Any reference in this chapter to a
             124      condominium unit includes both a physical unit together with its appurtenant undivided interest
             125      in the common areas and facilities and a time period unit together with its appurtenant
             126      undivided interest, unless the reference is specifically limited to a time period unit.
             127          (11) "Contractible condominium" means a condominium project from which one or
             128      more portions of the land within the project may be withdrawn in accordance with provisions
             129      of the declaration and of this chapter. If the withdrawal can occur only by the expiration or
             130      termination of one or more leases, then the condominium project is not a contractible
             131      condominium within the meaning of this chapter.
             132          (12) "Convertible land" means a building site which is a portion of the common areas
             133      and facilities, described by metes and bounds, within which additional units or limited common
             134      areas and facilities may be created in accordance with this chapter.
             135          (13) "Convertible space" means a portion of the structure within the condominium
             136      project, which portion may be converted into one or more units or common areas and facilities,
             137      including limited common areas and facilities in accordance with this chapter.
             138          (14) "Declarant" means all persons who execute the declaration or on whose behalf the
             139      declaration is executed. From the time of the recordation of any amendment to the declaration
             140      expanding an expandable condominium, all persons who execute that amendment or on whose
             141      behalf that amendment is executed shall also come within this definition. Any successors of


             142      the persons referred to in this subsection who come to stand in the same relation to the
             143      condominium project as their predecessors also come within this definition.
             144          (15) "Declaration" means the instrument by which the property is submitted to the
             145      provisions of this act, as it from time to time may be lawfully amended.
             146          (16) "Expandable condominium" means a condominium project to which additional
             147      land or an interest in it may be added in accordance with the declaration and this chapter.
             148          (17) "Leasehold condominium" means a condominium project in all or any portion of
             149      which each unit owner owns an estate for years in his unit, or in the land upon which that unit
             150      is situated, or both, with all those leasehold interests to expire naturally at the same time. A
             151      condominium project including leased land, or an interest in the land, upon which no units are
             152      situated or to be situated is not a leasehold condominium within the meaning of this chapter.
             153          (18) "Limited common areas and facilities" means those common areas and facilities
             154      designated in the declaration as reserved for use of a certain unit or units to the exclusion of the
             155      other units.
             156          (19) "Majority" or "majority of the unit owners," unless otherwise provided in the
             157      declaration or lawful amendments to the declaration, means the owners of more than 50% in
             158      the aggregate in interest of the undivided ownership of the common areas and facilities.
             159          (20) "Management committee" means the committee as provided in the declaration
             160      charged with and having the responsibility and authority to make and to enforce all of the
             161      reasonable rules covering the operation and maintenance of the property.
             162          (21) "Par value" means a number of dollars or points assigned to each unit by the
             163      declaration. Substantially identical units shall be assigned the same par value, but units located
             164      at substantially different heights above the ground, or having substantially different views, or
             165      having substantially different amenities or other characteristics that might result in differences
             166      in market value, may be considered substantially identical within the meaning of this
             167      subsection. If par value is stated in terms of dollars, that statement may not be considered to
             168      reflect or control the sales price or fair market value of any unit, and no opinion, appraisal, or
             169      fair market transaction at a different figure may affect the par value of any unit, or any


             170      undivided interest in the common areas and facilities, voting rights in the unit owners'
             171      association, liability for common expenses, or right to common profits, assigned on the basis
             172      thereof.
             173          (22) "Person" means an individual, corporation, partnership, association, trustee, or
             174      other legal entity.
             175          (23) "Property" means the land, whether leasehold or in fee simple, the building, if any,
             176      all improvements and structures thereon, all easements, rights, and appurtenances belonging
             177      thereto, and all articles of personal property intended for use in connection therewith.
             178          (24) "Record," "recording," "recorded," and "recorder" have the meaning stated in Title
             179      57, Chapter 3, Recording of Documents.
             180          (25) "Size" means the number of cubic feet, or the number of square feet of ground or
             181      floor space, within each unit as computed by reference to the record of survey map and rounded
             182      off to a whole number. Certain spaces within the units including attic, basement, or garage
             183      space may be omitted from the calculation or be partially discounted by the use of a ratio, if the
             184      same basis of calculation is employed for all units in the condominium project and if that basis
             185      is described in the declaration.
             186          (26) "Time period unit" means an annually recurring part or parts of a year specified in
             187      the declaration as a period for which a unit is separately owned and includes a timeshare estate
             188      as defined in Subsection 57-19-2 [(17)](19).
             189          (27) "Unit" means either a separate physical part of the property intended for any type
             190      of independent use, including one or more rooms or spaces located in one or more floors or
             191      part or parts of floors in a building or a time period unit, as the context may require. A
             192      convertible space shall be treated as a unit in accordance with Subsection 57-8-13.4 (3). A
             193      proposed condominium unit under an expandable condominium project, not constructed, is a
             194      unit two years after the date the recording requirements of Section 57-8-13.6 are met.
             195          (28) "Unit number" means the number, letter, or combination of numbers and letters
             196      designating the unit in the declaration and in the record of survey map.
             197          (29) "Unit owner" means the person or persons owning a unit in fee simple and an


             198      undivided interest in the fee simple estate of the common areas and facilities in the percentage
             199      specified and established in the declaration or, in the case of a leasehold condominium project,
             200      the person or persons whose leasehold interest or interests in the condominium unit extend for
             201      the entire balance of the unexpired term or terms.
             202          Section 2. Section 57-8-27 is amended to read:
             203           57-8-27. Separate taxation.
             204          (1) Each unit and its percentage of undivided interest in the common or community
             205      areas and facilities shall be considered to be a parcel and shall be subject to separate
             206      assessment and taxation by each assessing unit, local district, and special service district for all
             207      types of taxes authorized by law, including ad valorem levies and special assessments. Neither
             208      the building or buildings, the property, nor any of the common areas and facilities may be
             209      considered a parcel.
             210          (2) In the event any of the interests in real property made subject to this chapter by the
             211      declaration are leasehold interests, if the lease creating these interests is of record in the office
             212      of the county recorder, if the balance of the term remaining under the lease is at least 40 years
             213      at the time the leasehold interest is made subject to this chapter, if units are situated or are to be
             214      situated on or within the real property covered by the lease, and if the lease provides that the
             215      lessee shall pay all taxes and assessments imposed by governmental authority, then until 10
             216      years prior to the date that the leasehold is to expire or until the lease is terminated, whichever
             217      first occurs, all taxes and assessments on the real property covered by the lease shall be levied
             218      against the owner of the lessee's interest. If the owner of the reversion under the lease has
             219      executed the declaration and condominium plat, until 10 years prior to the date that the
             220      leasehold is to expire, or until the lease is terminated, whichever first occurs, all taxes and
             221      assessments on the real property covered by the lease shall be separately levied against the unit
             222      owners having an interest in the lease, with each unit owner for taxation purposes being
             223      considered the owner of a parcel consisting of his undivided condominium interest in the fee of
             224      the real property affected by the lease.
             225          (3) No forfeiture or sale of the improvements or the property as a whole for delinquent


             226      real estate taxes, special assessments, or charges shall divest or in anywise affect the title to an
             227      individual unit if the real estate taxes or duly levied share of the assessments and charges on the
             228      individual unit are currently paid.
             229          (4) Any exemption from taxes that may exist on real property or the ownership of the
             230      property may not be denied by virtue of the submission of the property to this chapter.
             231          (5) Timeshare interests and timeshare estates, as defined in Subsection
             232      57-19-2 [(17)](19), may not be separately taxed but shall be valued, assessed, and taxed at the
             233      unit level. The value of timeshare interests and timeshare estates, for purposes of ad valorem
             234      taxation, shall be determined by valuing the real property interest associated with the timeshare
             235      interest or timeshare estate, exclusive of the value of any intangible property and rights
             236      associated with the acquisition, operation, ownership, and use of the timeshare interest or
             237      timeshare estate, including the fees and costs associated with the sale of timeshare interests and
             238      timeshare estates that exceed those fees and costs normally incurred in the sale of other similar
             239      properties, the fees and costs associated with the operation, ownership, and use of timeshare
             240      interests and timeshare estates, vacation exchange rights, vacation conveniences and services,
             241      club memberships, and any other intangible rights and benefits available to a timeshare unit
             242      owner. Nothing in this section shall be construed as requiring the assessment of any real
             243      property interest associated with a timeshare interest or timeshare estate at less than its fair
             244      market value. Notice of assessment, delinquency, sale, or any other purpose required by law is
             245      considered sufficient for all purposes if the notice is given to the management committee.
             246          Section 3. Section 57-19-2 is amended to read:
             247           57-19-2. Definitions.
             248          As used in this chapter, unless the context clearly requires otherwise:
             249          (1) "Accommodations" includes hotel or motel rooms, condominium or cooperative
             250      units, cabins, lodges, apartments, and private or commercial structures designed for occupancy
             251      by one or more individuals.
             252          (2) "Advertisement" means a written, printed, audio, or visual offer made by general
             253      solicitation.


             254          (3) "Association" means an organized body consisting solely of owners of timeshare
             255      interests in a timeshare development that has been registered with the division.
             256          (4) "Business day" means a day other than a Saturday, Sunday, or state or federal
             257      holiday.
             258          [(3)] (5) "Camp resort" means any enterprise that has as its primary purpose the
             259      offering of a camp resort interest.
             260          [(4)] (6) "Camp resort interest" means the right to use and occupy a camping site.
             261          [(5)] (7) "Camping site" means a space designed or promoted for the purpose of
             262      locating a trailer, tent, tent trailer, pickup camper, or other similar device used for land-based
             263      portable housing.
             264          [(6)] (8) "Developer" means a person who:
             265          (a) establishes, promotes, owns, or operates a timeshare development or camp resort[.];
             266      or
             267          (b) engages one or more other persons to establish, promote, or operate a timeshare
             268      development or camp resort on the person's behalf.
             269          [(7)] (9) "Director" means the director of the division.
             270          [(8)] (10) "Division" means the Division of Real Estate of the Department of
             271      Commerce.
             272          [(9)] (11) "Executive director" means the executive director of the Department of
             273      Commerce.
             274          [(10)] (12) "Interest" means a camp resort interest or a timeshare interest.
             275          [(11)] (13) "Offer" means a solicitation intended to result in a person purchasing an
             276      interest in a project.
             277          [(12)] (14) "Project" means a camp resort or timeshare development.
             278          [(13)] (15) "Purchaser" means a person who purchases an interest in a project.
             279          [(14)] (16) "Sale" or "sell" means selling an interest in a project for value. It does not
             280      include charging a reasonable fee to offset the administrative costs of transferring an interest in
             281      a project.


             282          [(15)] (17) "Salesperson" means an individual who, for compensation and as agent for
             283      another, is engaged in obtaining commitments of persons to purchase an interest in a project by
             284      making direct sales presentations to those persons. It does not include purchasers or members
             285      engaged in the referral of persons without making a direct sales presentation to them.
             286          [(16)] (18) "Timeshare development" means any enterprise that has as its primary
             287      purpose the offering of a timeshare interest, including a project in which the purchase of an
             288      interest gives the purchaser the right to use and occupy an accommodation at one specific site
             289      or more than one site.
             290          [(17)] (19) "Timeshare interest" means a right to occupy fixed or variable
             291      accommodations during three or more separate fixed or variable time periods over a period of
             292      at least three years, including renewal options, whether or not coupled with an estate in land. It
             293      includes what is commonly known as a "timeshare estate," which is a small undivided
             294      fractional fee interest in real property by which the purchaser does not receive any right to use
             295      accommodations except as provided by contract, declaration, or other instrument defining a
             296      legal right.
             297          Section 4. Section 57-19-6 is amended to read:
             298           57-19-6. Effective date of application.
             299          (1) An application for registration filed pursuant to Section 57-19-5 is effective upon
             300      the expiration of 30 business days following its filing with the director, unless:
             301          (a) an order denying the application pursuant to Section 57-19-13 is in effect;
             302          (b) a prior effective date has been ordered by the director; or
             303          (c) the director has, prior to that date, notified the applicant of a defect in the
             304      registration application.
             305          (2) An applicant may consent to the delay of effectiveness until the director by order
             306      declares the registration to be effective.
             307          (3) (a) Notwithstanding Section 57-19-4 , the division may grant a temporary permit
             308      allowing the developer to begin a sales and marketing program while the registration is in
             309      process.


             310          (b) To obtain a temporary permit, the developer shall:
             311          [(a)] (i) submit an application to the division for a temporary permit in the form
             312      required by the division;
             313          [(b)] (ii) submit a substantially complete application for registration to the division,
             314      including all appropriate fees and exhibits required under Section 57-19-5 , plus a temporary
             315      permit fee of $100;
             316          [(c)] (iii) provide evidence acceptable to the division that all funds received by the
             317      developer or marketing agent will be placed into an independent escrow with instructions that
             318      funds will not be released until a final registration has been granted;
             319          [(d)] (iv) give to each purchaser and potential purchaser a copy of the proposed
             320      property report that the developer has submitted to the division with the initial application; and
             321          [(e)] (v) give to each purchaser the opportunity to cancel the purchase in accordance
             322      with Section 57-19-12 . [The]
             323          (c) A purchaser shall have an additional opportunity to cancel upon the issuance of an
             324      approved registration if the division determines that there is a substantial difference in the
             325      disclosures contained in the final property report and those given to the [purchase] purchaser in
             326      the proposed property report.
             327          (4) (a) Notwithstanding Section 57-19-4 , a developer or a person acting on behalf of a
             328      developer may market and accept a reservation and deposit from a prospective purchaser before
             329      submitting to the division a registration or temporary permit application for a project if:
             330          (i) the deposit is placed in a non-interest bearing escrow account with a licensed real
             331      estate broker, a title company, or another escrow that the division approves in advance; and
             332          (ii) the deposit is guaranteed to be fully refundable at any time at the request of the
             333      prospective purchaser.
             334          (b) A deposit that a prospective purchaser tenders under Subsection (4)(a) may not be
             335      released to the developer until after:
             336          (i) the division approves the project registration; and
             337          (ii) the prospective purchaser executes a written purchase contract creating a binding


             338      obligation to purchase.
             339          Section 5. Section 57-19-8 is amended to read:
             340           57-19-8. Filing proposed documents.
             341          (1) Every developer shall file with the director at least five business days prior to using
             342      any of the following in this state:
             343          [(a) copies or the proposed text of all advertisements and sales promotion literature;]
             344          [(b)] (a) the proposed form of its sales contracts; and
             345          [(c)] (b) copies or the text of any supplements to the written disclosure required to be
             346      furnished to prospective purchasers pursuant to Section 57-19-11 .
             347          (2) If the text, rather than copies, of the materials specified in Subsection (1) are filed,
             348      copies of these materials shall be filed with the director within five business days following the
             349      date the materials are first used.
             350          (3) The developer shall notify the division within five working days if he is convicted
             351      in any court of a crime involving fraud, deception, false pretenses, misrepresentation, false
             352      advertising, or dishonest dealing in real estate transactions, or has been subject to any
             353      injunction or administrative order restraining a false or misleading promotional plan involving
             354      land dispositions.
             355          (4) The developer must notify the division within five working days if the developer
             356      files a petition in bankruptcy or if any other event occurs which may have a material adverse
             357      effect on the subdivision.
             358          (5) (a) [In] If any suit by or against [the] a developer [involving] of a camp [resorts]
             359      resort or timeshare [developments] development results in a court finding that the developer
             360      engaged in fraud, deception, false pretenses, misrepresentation, false advertising, or dishonest
             361      dealing in a real estate transaction, the developer [promptly] shall promptly furnish the division
             362      [notice of the suit and copies of all pleadings. Failure to provide notice] a copy of the final
             363      order, settlement agreement, consent agreement, or other document evidencing resolution of
             364      the case at the trial level, whether or not an appeal is anticipated.
             365          (b) A developer's failure to comply with Subsection (5)(a) may, in the discretion of the


             366      division, constitute grounds for the division withholding any approval required by this [act]
             367      chapter.
             368          Section 6. Section 57-19-12 is amended to read:
             369           57-19-12. Purchaser's right to cancel.
             370          (1) (a) An agreement to purchase an interest in a project may be cancelled, at the option
             371      of the purchaser, if:
             372          (i) the purchaser provides to the developer, by hand delivery or certified mail, written
             373      notice of the cancellation; and
             374          (ii) the notice is delivered or postmarked not later than midnight of the fifth [calendar]
             375      business day following the day on which the agreement is signed.
             376          (b) In computing the number of [calendar] business days for purposes of this section,
             377      the day on which the agreement was signed [and legal holidays are] is not included [as
             378      "calendar days."].
             379          (c) Within 30 days after receipt of timely notice of cancellation, the developer shall
             380      refund any money or other consideration paid by the purchaser.
             381          (2) Every agreement to purchase an interest in a project which is subject to this chapter
             382      shall include the following statement in at least 10-point bold upper-case type, immediately
             383      preceding the space for the purchaser's signature:
             384          "PURCHASER'S RIGHT TO CANCEL: YOU MAY CANCEL THIS AGREEMENT
             385      WITHOUT ANY CANCELLATION FEE OR OTHER PENALTY BY HAND DELIVERING
             386      OR SENDING BY CERTIFIED MAIL WRITTEN NOTICE OF CANCELLATION TO:
             387      (NAME AND ADDRESS OF DEVELOPER). THE NOTICE MUST BE DELIVERED OR
             388      POSTMARKED BY MIDNIGHT OF THE FIFTH [CALENDAR] BUSINESS DAY
             389      FOLLOWING THE DAY ON WHICH THE AGREEMENT IS SIGNED. IN COMPUTING
             390      THE NUMBER OF [CALENDAR] BUSINESS DAYS, THE DAY ON WHICH THE
             391      CONTRACT IS SIGNED [AND LEGAL HOLIDAYS ARE] IS NOT INCLUDED."
             392          Section 7. Section 57-19-13 is amended to read:
             393           57-19-13. Suspension, revocation, or denial of registration -- Fine.


             394          (1) Subject to Section 57-19-17 , an application for registration of a project may be
             395      denied, an existing registration may be suspended or revoked, or a fine of not more than $500
             396      may be imposed by the director, if [he] the director finds that:
             397          (a) the developer's advertising or sales techniques or trade practices have been or are
             398      deceptive, false, or misleading;
             399          (b) the developer has failed to file copies of its [advertisements, promotion literature,
             400      or] sales contract forms as required by Section 57-19-8 ;
             401          (c) the developer has failed to comply with any provision of this chapter or the rules
             402      adopted under this chapter that materially affect or would affect the rights of purchasers or
             403      prospective purchasers of an interest in a project, or that materially affect the administration of
             404      this chapter;
             405          (d) the developer's offering of an interest in a project has worked or would work a
             406      fraud upon purchasers or prospective purchasers of such an interest;
             407          (e) the developer's application or any amendment to an application is incomplete in any
             408      material respect;
             409          (f) the developer's application or any amendment to an application contains material
             410      misrepresentations or omissions of material fact which are necessary to make the statements
             411      contained in the application or amendment not misleading;
             412          (g) the developer or any officer or director of the developer has been:
             413          (i) convicted of a felony, or any misdemeanor involving theft, fraud, or dishonesty;
             414          (ii) enjoined from, assessed a civil penalty for, or found to have engaged in the
             415      violation of any law designed to protect consumers; or
             416          (iii) engaged in dishonest practices in any industry involving sales to consumers;
             417          (h) the developer has represented or is representing to purchasers in connection with
             418      the offer or sale of an interest in a project that any accommodations, related facilities, or
             419      amenities are planned, without reasonable grounds to believe that they will be completed
             420      within a reasonable time;
             421          (i) the developer has disposed of, concealed, or diverted any funds or assets so as to


             422      defeat the rights of purchasers; [or]
             423          (j) the developer has failed to provide to purchasers copies of the written disclosure
             424      required by Section 57-19-11 [.]; or
             425          (k) the developer, the developer's successor in interest, or a managing association
             426      discloses a purchaser's name, address, or email address to an unaffiliated entity without first
             427      obtaining written consent from the purchaser, unless the disclosure is in response to a subpoena
             428      or an order of a court or administrative tribunal.
             429          (2) The authority to impose fines as provided in this section does not apply to
             430      Subsection (1)(e).
             431          (3) Notwithstanding Subsection (1)(k), a developer shall, upon request by the division,
             432      provide the division a list of all purchasers' names, addresses, and email addresses.
             433          Section 8. Section 57-19-26 is amended to read:
             434           57-19-26. Exemptions.
             435          (1) Unless entered into for the purpose of evading the provisions of this chapter, the
             436      following transactions are exempt from registration:
             437          (a) isolated transactions by an owner of an interest in a project or by a person holding
             438      such an owner's executed power of attorney;
             439          (b) an offer or sale by a governmental entity; and
             440          [(c) a bona fide pledge of interest in a project.]
             441          (c) the resale of an interest that is:
             442          (i) acquired:
             443          (A) by the developer who initially registered the project or by the managing association
             444      of the project; and
             445          (B) through a foreclosure, quitclaim deed, deed in lieu of foreclosure, or equivalent
             446      transfer;
             447          (ii) not offered as part of a project that includes one or more interests that are
             448      unregistered or have been registered by a different developer or as part of a different project;
             449      and


             450          (iii) closed after the developer or managing association provides a purchaser the
             451      disclosures required by Section 57-19-11 and the right to rescind required by Section 57-19-12 .
             452          (2) After a resale by a developer or managing association that is claimed to be exempt
             453      under Subsection (1)(c), the division retains jurisdiction to:
             454          (a) investigate a complaint regarding the resale; and
             455          (b) if applicable, take an administrative action against the developer or managing
             456      association on the basis of unprofessional conduct, as provided in Section 57-19-13 .
             457          [(2)] (3) (a) The director may, by rule or order, exempt any person from any or all
             458      requirements of this chapter if the director finds that the offering of an interest in a project is
             459      essentially noncommercial. [For purposes of this subsection, the]
             460          (b) The offering of [fewer than] one or more interests in a project that has a maximum
             461      of 10 interests [in a project] is considered essentially noncommercial.
             462          Section 9. Section 61-2c-102 is amended to read:
             463           61-2c-102. Definitions.
             464          (1) As used in this chapter:
             465          (a) "Affiliation" means that a mortgage loan originator is associated with a principal
             466      lending manager in accordance with Section 61-2c-209 .
             467          (b) "Applicant" means a person applying for a license under this chapter.
             468          (c) "Approved examination provider" means a person approved by the nationwide
             469      database as an approved test provider.
             470          (d) "Associate lending manager" means an individual who:
             471          (i) qualifies under this chapter as a principal lending manager; and
             472          (ii) works by or on behalf of another principal lending manager in transacting the
             473      business of residential mortgage loans.
             474          (e) "Branch lending manager" means an individual who is:
             475          (i) licensed as a lending manager; and
             476          (ii) designated in the nationwide database by the individual's sponsoring entity as being
             477      responsible to work from a branch office and to supervise the business of residential mortgage


             478      loans that is conducted at the branch office.
             479          [(e)] (f) "Branch office" means a licensed entity's office:
             480          (i) for the transaction of the business of residential mortgage loans regulated under this
             481      chapter;
             482          (ii) other than the main office of the licensed entity; and
             483          (iii) that operates under:
             484          (A) the same business name as the licensed entity; or
             485          (B) another trade name that is registered with the division under the entity license.
             486          [(f)] (g) "Business day" means a day other than:
             487          (i) a Saturday;
             488          (ii) a Sunday; or
             489          (iii) a federal or state holiday.
             490          [(g)] (h) (i) "Business of residential mortgage loans" means for compensation or in the
             491      expectation of compensation to:
             492          (A) engage in an act that makes an individual a mortgage loan originator;
             493          (B) make or originate a residential mortgage loan;
             494          (C) directly or indirectly solicit a residential mortgage loan for another;
             495          (D) unless excluded under Subsection (1)[(g)](h)(ii), render services related to the
             496      origination of a residential mortgage loan including:
             497          (I) preparing a loan package;
             498          (II) communicating with the borrower or lender; [or]
             499          (III) advising on a loan term; or
             500          (IV) acting as a loan processor without being employed by a licensed entity; or
             501          (E) engage in loan modification assistance.
             502          (ii) "Business of residential mortgage loans" does not include:
             503          (A) if working as an employee under the direction of and subject to the supervision and
             504      instruction of a person licensed under this chapter, the performance of a clerical or support duty
             505      such as:


             506          (I) the receipt, collection, or distribution of information common for the processing or
             507      underwriting of a loan in the mortgage industry other than taking an application;
             508          (II) communicating with a consumer to obtain information necessary for the processing
             509      or underwriting of a residential mortgage loan;
             510          (III) word processing;
             511          (IV) sending correspondence; [or]
             512          (V) assembling files; or
             513          (VI) acting as a loan processor;
             514          (B) ownership of an entity that engages in the business of residential mortgage loans if
             515      the owner does not personally perform the acts listed in Subsection (1)[(g)](h)(i); or
             516          (C) except if an individual will engage in an activity as a mortgage loan originator,
             517      acting in one or more of the following capacities:
             518          (I) a loan wholesaler;
             519          (II) an account executive for a loan wholesaler;
             520          (III) a loan underwriter;
             521          (IV) a loan closer; or
             522          (V) funding a loan; or
             523          (D) if employed by a person who owns or services an existing residential mortgage
             524      loan, the direct negotiation with the borrower for the purpose of loan modification.
             525          [(h)] (i) "Certified education provider" means a person who is certified under Section
             526      61-2c-204.1 to provide one or more of the following:
             527          (i) Utah-specific prelicensing education; or
             528          (ii) Utah-specific continuing education.
             529          [(i)] (j) "Closed-end" means a loan:
             530          (i) with a fixed amount borrowed; and
             531          (ii) that does not permit additional borrowing secured by the same collateral.
             532          [(j)] (k) "Commission" means the Residential Mortgage Regulatory Commission
             533      created in Section 61-2c-104 .


             534          [(k)] (l) "Compensation" means anything of economic value that is paid, loaned,
             535      granted, given, donated, or transferred to an individual or entity for or in consideration of:
             536          (i) services;
             537          (ii) personal or real property; or
             538          (iii) another thing of value.
             539          [(l)] (m) "Concurrence" means that entities given a concurring role must jointly agree
             540      for the action to be taken.
             541          [(m)] (n) "Continuing education" means education taken by an individual licensed
             542      under this chapter in order to meet the education requirements imposed by Sections
             543      61-2c-204.1 and 61-2c-205 to renew a license under this chapter.
             544          [(n)] (o) "Control," as used in Subsection 61-2c-105 (2)(f), means the power to directly
             545      or indirectly:
             546          (i) direct or exercise a controlling interest over:
             547          (A) the management or policies of an entity; or
             548          (B) the election of a majority of the directors, officers, managers, or managing partners
             549      of an entity;
             550          (ii) vote 20% or more of a class of voting securities of an entity by an individual; or
             551          (iii) vote more than 5% of a class of voting securities of an entity by another entity.
             552          [(o)] (p) (i) "Control person" means an individual identified by an entity registered with
             553      the nationwide database as being an individual directing the management or policies of the
             554      entity.
             555          (ii) "Control person" may include one of the following who is identified as provided in
             556      Subsection (1)[(o)](p)(i):
             557          (A) a manager;
             558          (B) a managing partner;
             559          (C) a director;
             560          (D) an executive officer; or
             561          (E) an individual who performs a function similar to an individual listed in this


             562      Subsection (1)[(o)](p)(ii).
             563          [(p)] (q) "Depository institution" is as defined in Section 7-1-103 .
             564          [(q)] (r) "Director" means the director of the division.
             565          [(r)] (s) "Division" means the Division of Real Estate.
             566          [(s)] (t) "Dwelling" means a residential structure attached to real property that contains
             567      one to four units including any of the following if used as a residence:
             568          (i) a condominium unit;
             569          (ii) a cooperative unit;
             570          (iii) a manufactured home; or
             571          (iv) a house.
             572          (u) "Employee":
             573          (i) means an individual:
             574          (A) whose manner and means of work performance are subject to the right of control
             575      of, or are controlled by, another person; and
             576          (B) whose compensation for federal income tax purposes is reported, or is required to
             577      be reported, on a W-2 form issued by the controlling person; and
             578          (ii) does not include an independent contractor who performs duties other than at the
             579      direction of, and subject to the supervision and instruction of, another person.
             580          [(t)] (v) "Entity" means:
             581          (i) a corporation;
             582          (ii) a limited liability company;
             583          (iii) a partnership;
             584          (iv) a company;
             585          (v) an association;
             586          (vi) a joint venture;
             587          (vii) a business trust;
             588          (viii) a trust; or
             589          (ix) another organization.


             590          [(u)] (w) "Executive director" means the executive director of the Department of
             591      Commerce.
             592          [(v)] (x) "Federal licensing requirements" means Secure and Fair Enforcement for
             593      Mortgage Licensing, 12 U.S.C. Sec. 5101 et seq.
             594          [(w)] (y) "Foreclosure rescue" means, for compensation or with the expectation of
             595      receiving valuable consideration, to:
             596          (i) engage, or offer to engage, in an act that:
             597          (A) the person represents will assist a borrower in preventing a foreclosure; and
             598          (B) relates to a transaction involving the transfer of title to residential real property; or
             599          (ii) as an employee or agent of another person:
             600          (A) solicit, or offer that the other person will engage in an act described in Subsection
             601      (1)[(w)](y)(i); or
             602          (B) negotiate terms in relationship to an act described in Subsection (1)[(w)](y)(i).
             603          [(x)] (z) "Inactive status" means a dormant status into which an unexpired license is
             604      placed when the holder of the license is not currently engaging in the business of residential
             605      mortgage loans.
             606          (aa) "Lending manager" means an individual licensed as a lending manager under
             607      Section 61-2c-206 to transact the business of residential mortgage loans.
             608          [(y)] (bb) "Licensee" means a person licensed with the division under this chapter.
             609          [(z)] (cc) "Licensing examination" means the examination required by Section
             610      61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
             611          [(aa)] (dd) "Loan modification assistance" means, for compensation or with the
             612      expectation of receiving valuable consideration, to:
             613          (i) act, or offer to act, on behalf of a person to:
             614          (A) obtain a loan term of a residential mortgage loan that is different from an existing
             615      loan term including:
             616          (I) an increase or decrease in an interest rate;
             617          (II) a change to the type of interest rate;


             618          (III) an increase or decrease in the principal amount of the residential mortgage loan;
             619          (IV) a change in the number of required period payments;
             620          (V) an addition of collateral;
             621          (VI) a change to, or addition of, a prepayment penalty;
             622          (VII) an addition of a cosigner; or
             623          (VIII) a change in persons obligated under the existing residential mortgage loan; or
             624          (B) substitute a new residential mortgage loan for an existing residential mortgage
             625      loan; or
             626          (ii) as an employee or agent of another person:
             627          (A) solicit, or offer that the other person will engage in an act described in Subsection
             628      (1)[(aa)](dd)(i); or
             629          (B) negotiate terms in relationship to an act described in Subsection (1)[(aa)](dd)(i).
             630          [(bb)] (ee) (i) Except as provided in Subsection (1)[(bb)](ee)(ii), "mortgage loan
             631      originator" means an individual who for compensation or in expectation of compensation:
             632          (A) (I) takes a residential mortgage loan application; or
             633          (II) offers or negotiates terms of a residential mortgage loan for the purpose of:
             634          (Aa) a purchase;
             635          (Bb) a refinance;
             636          (Cc) a loan modification assistance; or
             637          (Dd) a foreclosure rescue; and
             638          (B) is licensed as a mortgage loan originator in accordance with this chapter.
             639          (ii) "Mortgage loan originator" does not include a person who:
             640          (A) is described in Subsection (1)[(bb)](ee)(i), but who performs exclusively
             641      administrative or clerical tasks as described in Subsection (1)[(g)](h)(ii)(A);
             642          (B) (I) is licensed under Chapter 2f, Real Estate Licensing and Practices Act;
             643          (II) performs only real estate brokerage activities; and
             644          (III) receives no compensation from:
             645          (Aa) a lender;


             646          (Bb) a [principal] lending manager; or
             647          (Cc) an agent of a lender or [principal] lending manager; or
             648          (C) is solely involved in extension of credit relating to a timeshare plan, as defined in
             649      11 U.S.C. Sec. 101(53D).
             650          [(cc)] (ff) "Nationwide database" means the Nationwide Mortgage Licensing System
             651      and Registry, authorized under federal licensing requirements.
             652          [(dd)] (gg) "Nontraditional mortgage product" means a mortgage product other than a
             653      30-year fixed rate mortgage.
             654          [(ee)] (hh) "Person" means an individual or entity.
             655          [(ff)] (ii) "Prelicensing education" means education taken by an individual seeking to
             656      be licensed under this chapter in order to meet the education requirements imposed by Section
             657      61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
             658          [(gg) (i)] (jj) "Principal lending manager" means an individual:
             659          (i) licensed as a [principal] lending manager under Section 61-2c-206 [to transact the
             660      business of residential mortgage loans.]; and
             661          (ii) identified in the nationwide database by the individual's sponsoring entity as the
             662      entity's principal lending manager.
             663          [(ii) An individual who is a principal lending manager may transact the business of
             664      residential mortgage loans as a mortgage loan originator.]
             665          [(hh)] (kk) "Record" means information that is:
             666          (i) prepared, owned, received, or retained by a person; and
             667          (ii) (A) inscribed on a tangible medium; or
             668          (B) (I) stored in an electronic or other medium; and
             669          (II) in a perceivable and reproducible form.
             670          (ll) "Referral fee":
             671          (i) means any fee, kickback, or thing of value tendered for a referral of business or a
             672      service incident to or part of a residential mortgage loan transaction; and
             673          (ii) does not mean a payment made:


             674          (A) by a licensed entity to an individual employed by the entity;
             675          (B) under a contractual incentive program; and
             676          (C) according to rules made by the division in accordance with Title 63G, Chapter 3,
             677      Utah Administrative Rulemaking Act.
             678          [(ii)] (mm) "Residential mortgage loan" means an extension of credit, if:
             679          (i) the loan or extension of credit is secured by a:
             680          (A) mortgage;
             681          (B) deed of trust; or
             682          (C) consensual security interest;
             683          (ii) the mortgage, deed of trust, or consensual security interest described in Subsection
             684      (1)[(ii)](mm)(i):
             685          (A) is on a dwelling located in the state; and
             686          (B) is created with the consent of the owner of the residential real property; and
             687          (iii) solely for the purposes of defining "mortgage loan originator," the extension of
             688      credit is primarily for personal, family, or household use.
             689          [(jj)] (nn) "Sponsorship" means an association in accordance with Section 61-2c-209
             690      between an individual licensed under this chapter and an entity licensed under this chapter.
             691          [(kk)] (oo) "State" means:
             692          (i) a state, territory, or possession of the United States;
             693          (ii) the District of Columbia; or
             694          (iii) the Commonwealth of Puerto Rico.
             695          [(ll)] (pp) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
             696          [(mm)] (qq) "Utah-specific" means an educational or examination requirement under
             697      this chapter that relates specifically to Utah.
             698          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             699      meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
             700      Utah Administrative Rulemaking Act.
             701          (b) If a term not defined in this section is not defined by rule, the term shall have the


             702      meaning commonly accepted in the business community.
             703          Section 10. Section 61-2c-103 is amended to read:
             704           61-2c-103. Powers and duties of the division.
             705          (1) The division shall administer this chapter.
             706          (2) In addition to a power or duty expressly provided in this chapter, the division may:
             707          (a) receive and act on a complaint including:
             708          (i) taking action designed to obtain voluntary compliance with this chapter; or
             709          (ii) commencing an administrative or judicial proceeding on the division's own
             710      initiative;
             711          (b) establish one or more programs for the education of consumers with respect to
             712      residential mortgage loans;
             713          (c) (i) make one or more studies appropriate to effectuate the purposes and policies of
             714      this chapter; and
             715          (ii) make the results of the studies described in Subsection (2)(c)(i) available to the
             716      public;
             717          (d) visit and investigate a person licensed under this chapter, regardless of whether the
             718      person is located in Utah;
             719          (e) employ one or more necessary hearing examiners, investigators, clerks, and other
             720      employees and agents; and
             721          (f) establish fees under Section 63J-1-504 for:
             722          (i) processing an application for licensing or certification; and
             723          (ii) any other function required or permitted by this chapter.
             724          (3) The division shall make rules for the administration of this chapter in accordance
             725      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, including:
             726          (a) licensure procedures for:
             727          (i) a person required by this chapter to obtain a license with the division; and
             728          (ii) the establishment of a branch office by an entity;
             729          (b) proper handling of money received by a licensee;


             730          (c) record-keeping requirements by a licensee, including proper disposal of a record;
             731          (d) certification procedures for certifying an education provider; and
             732          (e) standards of conduct for a licensee or certified education provider.
             733          (4) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
             734      Administrative Rulemaking Act, require as a condition of maintaining a license or certification
             735      under this chapter that a person comply with a requirement of the nationwide database if:
             736          (a) required for uniformity amongst states; and
             737          (b) not inconsistent with this chapter.
             738          (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
             739      Administrative Rulemaking Act, provide a process under which an individual may challenge
             740      information contained in the nationwide database.
             741          (6) The division shall annually:
             742          (a) review the requirements related to the nationwide database imposed by federal
             743      licensing requirements or the nationwide database on:
             744          (i) the division;
             745          (ii) a licensee under this chapter;
             746          (iii) a certified education provider; or
             747          (iv) an approved examination provider; and
             748          (b) after the review required by Subsection (6)(a):
             749          (i) report to the Business and Labor Interim Committee the impact of the requirements
             750      on the implementation by the division of this chapter; and
             751          (ii) recommend legislation, if any, to the Business and Labor Interim Committee
             752      related to how the division should coordinate with the nationwide database.
             753          (7) The division may enter into a relationship or contract with the nationwide database
             754      or another entity designated by the nationwide database to do the following related to a licensee
             755      or other person subject to this chapter:
             756          (a) collect or maintain a record; and
             757          (b) process a transaction fee or other fee.


             758          (8) The division shall regularly report the following to the nationwide database:
             759          (a) a violation of this chapter;
             760          (b) licensing or disciplinary action under this chapter; and
             761          (c) other information relevant to this chapter.
             762          (9) If a person pays a fee or costs to the division with a negotiable instrument or any
             763      other method that is not honored for payment:
             764          (a) the transaction for which the payment is submitted is voidable by the division;
             765          (b) the division may reverse the transaction if payment of the applicable fee or costs is
             766      not received in full; and
             767          (c) the person's license, certification, or registration is automatically suspended:
             768          (i) beginning the day on which the payment is due; and
             769          (ii) ending the day on which payment is made in full.
             770          Section 11. Section 61-2c-106 is amended to read:
             771           61-2c-106. Addresses provided the division.
             772          (1) (a) A person shall provide a physical location or street address when the person
             773      provides the nationwide database an address required by the division.
             774          (b) The following when provided under this chapter is public information:
             775          (i) a business address; or
             776          (ii) a mailing address.
             777          (2) A licensee is considered to have received a notification that is mailed to the last
             778      mailing address furnished to the nationwide database by:
             779          (a) [if the licensee is an individual,] the individual, if the licensee is an individual; or
             780          (b) [if the licensee is an entity,] the [principal] lending manager [of] who is designated
             781      within the nationwide database to act as the principal lending manager for the entity, if the
             782      licensee is an entity.
             783          Section 12. Section 61-2c-203 is amended to read:
             784           61-2c-203. General qualifications for licensure.
             785          (1) To qualify for licensure under this chapter, a person shall demonstrate through


             786      procedures established by rule made by the division in accordance with Title 63G, Chapter 3,
             787      Utah Administrative Rulemaking Act:
             788          (a) financial responsibility;
             789          (b) good moral character, honesty, integrity, and truthfulness; and
             790          (c) the competence to transact the business of residential mortgage loans, including
             791      general fitness such as to command the confidence of the community and to warrant a
             792      determination that the person will operate honestly, fairly, and efficiently within the purposes
             793      of this chapter.
             794          (2) If an applicant is an entity, the applicant may not have a control person who fails to
             795      meet the requirements of Subsection (1) for an individual applicant.
             796          (3) (a) The division shall determine whether an applicant with a criminal history
             797      qualifies for licensure.
             798          (b) If the division, acting under Subsection (3)(a), denies or restricts a license or places
             799      a license on probation, the applicant may petition the commission for de novo review of the
             800      application.
             801          Section 13. Section 61-2c-204.1 is amended to read:
             802           61-2c-204.1. Education providers -- Education requirements -- Examination
             803      requirements.
             804          (1) As used in this section:
             805          (a) "Approved continuing education course" means a course of continuing education
             806      that is approved by the nationwide database.
             807          (b) "Approved prelicensing education course" means a course of prelicensing education
             808      that is approved by the nationwide database.
             809          (2) (a) A person may not provide Utah-specific prelicensing education or Utah-specific
             810      continuing education if that person is not certified by the division under this chapter.
             811          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             812      division shall make rules establishing:
             813          (i) certification criteria and procedures to become a certified education provider; and


             814          (ii) standards of conduct for a certified education provider.
             815          (c) In accordance with the rules described in Subsection (2)(b), the division shall
             816      certify a person to provide the education described in Subsection (2)(a).
             817          (d) (i) Upon request, the division shall make available to the public a list of the names
             818      and addresses of certified education providers either directly or through a third party.
             819          (ii) A person who requests a list under this Subsection (2)(d) shall pay the costs
             820      incurred by the division to make the list available.
             821          (e) In certifying a person as a certified education provider, the division by rule may:
             822          (i) distinguish between an individual instructor and an entity that provides education;
             823      or
             824          (ii) approve:
             825          (A) Utah-specific prelicensing education; or
             826          (B) Utah-specific continuing education courses.
             827          (3) (a) The division may not:
             828          (i) license an individual under this chapter as a mortgage loan originator who has not
             829      completed the prelicensing education required by this section:
             830          (A) before taking the one or more licensing examinations required by Subsection (4);
             831          (B) in the number of hours, not to exceed 90 hours, required by rule made by the
             832      division in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             833          (C) that includes the prelicensing education required by federal licensing regulations;
             834          (ii) subject to Subsection (6), renew a license of an individual who has not completed
             835      the continuing education required by this section and Section 61-2c-205 :
             836          (A) in the number of hours required by rule made by the division in accordance with
             837      Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             838          (B) that includes the continuing education required by federal licensing regulations; or
             839          (iii) license an individual under this chapter as a [principal] lending manager who has
             840      not completed the prelicensing education required by Section 61-2c-206 before taking the
             841      licensing examination required by Section 61-2c-206 .


             842          (b) Subject to Subsection (3)(a) and with the concurrence of the division, the
             843      commission shall determine:
             844          (i) except as provided in Subsection 61-2c-206 (1)(b), the appropriate number of hours
             845      of prelicensing education required to obtain a license;
             846          (ii) the subject matters of the prelicensing education required under this section and
             847      Section 61-2c-206 , including online education or distance learning options;
             848          (iii) the appropriate number of hours of continuing education required to renew a
             849      license; and
             850          (iv) the subject matter of courses the division may accept for continuing education
             851      purposes.
             852          (c) The commission may appoint a committee to make recommendations to the
             853      commission concerning approval of prelicensing education and continuing education courses,
             854      except that the commission shall appoint at least one member to the committee to represent
             855      each association that represents a significant number of individuals licensed under this chapter.
             856          (d) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
             857      Administrative Rulemaking Act, provide for the calculation of continuing education credits,
             858      except that the rules shall be consistent with 12 U.S.C. Sec. 5105.
             859          (4) (a) The division may not license an individual under this chapter unless that
             860      individual first passes the one or more licensing examinations that:
             861          (i) are adopted by the division in accordance with Title 63G, Chapter 3, Utah
             862      Administrative Rulemaking Act;
             863          (ii) meet the minimum federal licensing requirements; and
             864          (iii) are administered by an approved examination provider.
             865          (b) The commission, with the concurrence of the division, shall determine the
             866      requirements for:
             867          (i) a licensing examination that at least:
             868          (A) meets the minimum federal licensing requirements; and
             869          (B) tests knowledge of the:


             870          (I) fundamentals of the English language;
             871          (II) arithmetic;
             872          (III) provisions of this chapter;
             873          (IV) rules adopted under this chapter;
             874          (V) basic residential mortgage principles and practices; and
             875          (VI) any other aspect of Utah law the commission determines is appropriate; and
             876          (ii) a licensing examination required under Section 61-2c-206 that:
             877          (A) meets the requirements of Subsection (4)(b)(i); and
             878          (B) tests knowledge of the:
             879          (I) advanced residential mortgage principles and practices; and
             880          (II) other aspects of Utah law the commission, with the concurrence of the division,
             881      determines appropriate.
             882          (c) An individual who will engage in an activity as a mortgage loan originator, is not
             883      considered to have passed a licensing examination if that individual has not met the minimum
             884      competence requirements of 12 U.S.C. Sec. 5104(d)(3).
             885          (5) When reasonably practicable, the commission and the division shall make the
             886      Utah-specific education requirements described in this section available electronically through
             887      one or more distance education methods approved by the commission and division.
             888          (6) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             889      the commission, with the concurrence of the division, shall make rules establishing procedures
             890      under which a licensee may be exempted from a Utah-specific continuing education
             891      requirement:
             892          (i) for a period not to exceed four years; and
             893          (ii) upon a finding of reasonable cause.
             894          (b) An individual who engages in an activity as a mortgage loan originator may not
             895      under this Subsection (6) be exempted from the minimum continuing education required under
             896      federal licensing regulations for an individual who engages in an activity as a mortgage loan
             897      originator.


             898          Section 14. Section 61-2c-205 is amended to read:
             899           61-2c-205. Term of licensure -- Renewal -- Reporting of changes.
             900          (1) (a) A license issued under this chapter expires as follows:
             901          (i) for the calendar year the license is issued:
             902          (A) if the license is issued on or before October 31, the license expires on December 31
             903      of the same calendar year; and
             904          (B) if the license is issued on or after November 1, the license expires on December 31
             905      of the following calendar year; and
             906          (ii) after the December 31 on which a license expires under Subsection (1)(a)(i), a
             907      license expires annually on December 31.
             908          (b) Notwithstanding Subsection (1)(a), the time period of a license may be extended or
             909      shortened by as much as one year to maintain or change a renewal cycle established by rule by
             910      the division.
             911          (2) To renew a license, no later than the date the license expires, a licensee shall in a
             912      manner provided by the division by rule:
             913          (a) file a renewal statement;
             914          (b) furnish the information required by Subsection 61-2c-202 (1);
             915          (c) renew the licensee's registration with the nationwide database, including the
             916      payment of a fee required by the nationwide database;
             917          (d) pay a fee to the division established by the division in accordance with Section
             918      63J-1-504 ; and
             919          (e) if the licensee is an individual [and the individual's license is in active status at the
             920      time of application for renewal], submit proof of having completed [during the year before
             921      application] the continuing education required under Section 61-2c-204.1 , according to the
             922      deadline the division establishes by rule in accordance with Title 63G, Chapter 3, Utah
             923      Administrative Rulemaking Act.
             924          (3) (a) A licensee under this chapter shall notify the division in a manner provided by
             925      the division by rule within 10 days of the date on which there is a change in:


             926          (i) a name under which the licensee transacts the business of residential mortgage loans
             927      in this state;
             928          (ii) (A) if the licensee is an entity, the business location of the licensee; or
             929          (B) if the licensee is an individual, the home and business addresses of the individual;
             930          (iii) the principal lending manager of the entity;
             931          (iv) the entity with which an individual licensee is licensed to conduct the business of
             932      residential mortgage loans; or
             933          (v) any other information that is defined as material by rule made by the division.
             934          (b) Failure to notify the division of a change described in Subsection (3)(a) is separate
             935      grounds for disciplinary action against a licensee.
             936          (c) The division may charge a fee established in accordance with Section 63J-1-504 for
             937      processing a change that a licensee is required to report to the division under Subsection (3)(a).
             938          (4) (a) A licensee shall notify the division by sending the division a signed statement
             939      within 10 business days of:
             940          (i) [(A)] a conviction of, or the entry of a plea in abeyance to:
             941          (A) a felony[, class A misdemeanor, or class B misdemeanor]; or
             942          [(B) the entry of a plea in abeyance to a felony, class A misdemeanor, or class B
             943      misdemeanor; or]
             944          (B) a misdemeanor involving financial services or a financial services-related business,
             945      fraud, a false statement or omission, theft or wrongful taking of property, bribery, perjury,
             946      forgery, counterfeiting, or extortion;
             947          [(C)] (ii) the potential resolution of a felony[, class A misdemeanor,] or [class B] of a
             948      misdemeanor described in Subsection (4)(a)(i)(B) by a diversion agreement, or any other
             949      agreement under which a criminal charge is held in suspense for a period of time;
             950          [(ii)] (iii) filing a personal bankruptcy or bankruptcy of a business that transacts the
             951      business of residential mortgage loans;
             952          [(iii)] (iv) the suspension, revocation, surrender, cancellation, or denial of a
             953      professional license or professional registration of the licensee, whether the license or


             954      registration is issued by this state or another jurisdiction; or
             955          [(iv)] (v) the entry of a cease and desist order or a temporary or permanent injunction:
             956          (A) against the licensee by a court or licensing agency; and
             957          (B) based on conduct or a practice involving the business of residential mortgage loans,
             958      or conduct involving fraud, misrepresentation, or deceit.
             959          (b) The commission, with the concurrence of the division, shall enforce the reporting
             960      requirement under this Subsection (4) pursuant to Section 61-2c-402 .
             961          (5) (a) A license under this chapter expires if the licensee does not apply to renew the
             962      license on or before the expiration date of the license.
             963          (b) A licensee whose license has expired may apply to reinstate the expired license, in
             964      a manner provided by the division by rule by:
             965          (i) requesting reinstatement;
             966          (ii) paying to the division a renewal fee and a late fee determined by the division under
             967      Section 63J-1-504 ; and
             968          (iii) reinstating the licensee's registration with the nationwide database, including the
             969      payment of a fee required by the nationwide database.
             970          Section 15. Section 61-2c-206 is amended to read:
             971           61-2c-206. Lending manager licenses.
             972          (1) To qualify for licensure as a [principal] lending manager under this chapter, an
             973      individual shall:
             974          (a) meet the standards in Section 61-2c-203 ;
             975          (b) successfully complete the following education:
             976          (i) mortgage loan originator prelicensing education as required by federal licensing
             977      regulations; and
             978          (ii) 40 hours of Utah-specific prelicensing education for a [principal] lending manager
             979      that is approved by the division under Section 61-2c-204.1 ;
             980          (c) successfully complete the following examinations:
             981          (i) the mortgage loan originator licensing examination as approved by the nationwide


             982      database; and
             983          (ii) the [principal] lending manager licensing examination approved by the commission
             984      under Section 61-2c-204.1 ;
             985          (d) submit proof, on a form approved by the division, of three years of full-time active
             986      experience as a mortgage loan originator licensed in any state in the five years preceding the
             987      day on which the application is submitted, or equivalent experience as approved by the
             988      commission;
             989          (e) submit an application in a manner established by the division by rule;
             990          (f) establish sponsorship with an entity licensed under this chapter;
             991          (g) if the individual is not registered in the nationwide database as a mortgage loan
             992      originator at the time of application, submit to the criminal background check required by
             993      Subsection 61-2c-202 (1)(b); and
             994          (h) pay a fee determined by the division under Section 63J-1-504 .
             995          (2) A [principal] lending manager may not:
             996          (a) engage in the business of residential mortgage loans on behalf of more than one
             997      entity at the same time; [or]
             998          (b) be sponsored by more than one entity at the same time[.]; or
             999          (c) act simultaneously as the principal lending manager and branch lending manager
             1000      for the individual's sponsoring entity, if the entity operates from more than one office located
             1001      within the state.
             1002          (3) An individual who is a lending manager may:
             1003          (a) transact the business of residential mortgage loans as a mortgage loan originator;
             1004      and
             1005          (b) be designated within the nationwide database to act for the individual's sponsoring
             1006      entity as the principal lending manager, an associate lending manager, or a branch lending
             1007      manager.
             1008          Section 16. Section 61-2c-209 is amended to read:
             1009           61-2c-209. Sponsorship -- Affiliation.


             1010          (1) (a) The division may not license an individual, and an individual licensed under this
             1011      chapter may not conduct the business of residential mortgage loans unless:
             1012          (i) if licensed as a mortgage loan originator, the individual:
             1013          (A) is sponsored by an entity licensed under this chapter; and
             1014          (B) is affiliated with [a] the sponsoring entity's principal lending manager; or
             1015          (ii) if licensed as a [principal] lending manager, the individual is sponsored by an entity
             1016      licensed under this chapter.
             1017          (b) The division may not license any entity and an entity licensed under this chapter
             1018      may not conduct the business of residential mortgage loans unless the entity:
             1019          (i) sponsors a principal lending manager;
             1020          (ii) identifies at least one control person for the entity; and
             1021          (iii) provides a list of the mortgage loan originators sponsored by the entity.
             1022          (2) (a) A mortgage loan originator's license automatically becomes inactive the day on
             1023      which:
             1024          (i) the mortgage loan originator is not sponsored by an entity licensed under this
             1025      chapter;
             1026          (ii) the license of the entity with which the mortgage loan originator is sponsored
             1027      becomes inactive or terminates;
             1028          (iii) the mortgage loan originator is not affiliated with a principal lending manager; or
             1029          (iv) the license of the principal lending manager with whom the mortgage loan
             1030      originator is affiliated becomes inactive or terminates.
             1031          (b) A [principal] lending manager's license automatically becomes inactive the day on
             1032      which:
             1033          (i) the [principal] lending manager is not sponsored by an entity licensed under this
             1034      chapter; or
             1035          (ii) the license of the entity with which the [principal] lending manager is sponsored
             1036      becomes inactive or terminates.
             1037          (c) A entity licensed under this chapter automatically becomes inactive the day on


             1038      which the entity's sponsorship with its principal lending manager terminates.
             1039          (3) (a) A person whose license is inactive may not transact the business of residential
             1040      mortgage loans.
             1041          (b) To activate an inactive mortgage loan originator license, an individual shall:
             1042          (i) provide evidence that the individual:
             1043          (A) is sponsored by an entity that holds an active license under this chapter; and
             1044          (B) is affiliated with a principal lending manager who holds an active license under this
             1045      chapter; and
             1046          (ii) pay a fee to the division set in accordance with Section 63J-1-504 .
             1047          (c) To activate an inactive [principal] lending manager license, an individual shall:
             1048          (i) provide evidence that the individual is sponsored by an entity that holds an active
             1049      license under this chapter; and
             1050          (ii) pay a fee to the division set in accordance with Section 63J-1-504 .
             1051          (d) To activate an inactive license held by an entity, an entity shall:
             1052          (i) provide evidence of the entity's sponsorship of a principal lending manager; and
             1053          (ii) pay a fee to the division set in accordance with Section 63J-1-504 .
             1054          (4) (a) A mortgage loan originator shall conduct the business of residential mortgage
             1055      loans only:
             1056          (i) through the [principal lending manager with whom] entity by which the individual
             1057      is [affiliated] sponsored; and
             1058          (ii) in the business name under which the sponsoring entity's principal lending manager
             1059      is authorized by the division to do business.
             1060          (b) An individual licensed under this chapter may not:
             1061          (i) engage in the business of residential mortgage loans on behalf of more than one
             1062      entity at the same time;
             1063          (ii) be sponsored by more than one entity at the same time;
             1064          (iii) transact the business of residential mortgage loans for the following at the same
             1065      time:


             1066          (A) an entity licensed under this chapter; and
             1067          (B) an entity that is exempt from licensure under Section 61-2c-105 ; or
             1068          (iv) if the individual is a mortgage loan originator, receive consideration for transacting
             1069      the business of residential mortgage loans from any person except the principal lending
             1070      manager [with whom the mortgage loan originator is affiliated] of the mortgage loan
             1071      originator's sponsoring entity.
             1072          (c) This Subsection (4) does not restrict the number of:
             1073          (i) different lenders a person may use as a funding source for a residential mortgage
             1074      loan; or
             1075          (ii) entities in which an individual may have an ownership interest, regardless of
             1076      whether the entities are:
             1077          (A) licensed under this chapter; or
             1078          (B) exempt under Section 61-2c-105 .
             1079          (5) The division by rule made in accordance with Title 63G, Chapter 3, Utah
             1080      Administrative Rulemaking Act, may make rules that:
             1081          (a) define what constitutes:
             1082          (i) affiliation; or
             1083          (ii) sponsorship; and
             1084          (b) provide procedures by which:
             1085          (i) an individual who is licensed under this chapter may provide evidence of
             1086      sponsorship by an entity that is licensed under this chapter;
             1087          (ii) a mortgage loan originator may provide evidence of affiliation with a principal
             1088      lending manager; and
             1089          (iii) an entity licensed under this chapter may:
             1090          (A) provide evidence of its sponsorship of a principal lending manager;
             1091          (B) identify at least one control person for the entity; and
             1092          (C) provide a list of the one or more mortgage loan originators that the entity sponsors.
             1093          Section 17. Section 61-2c-301 is amended to read:


             1094           61-2c-301. Prohibited conduct -- Violations of the chapter.
             1095          (1) A person transacting the business of residential mortgage loans in this state may
             1096      not:
             1097          (a) give or receive a referral fee, other compensation, or anything of value in exchange
             1098      for a referral of residential mortgage loan business;
             1099          (b) charge a fee in connection with a residential mortgage loan transaction:
             1100          (i) that is excessive; or
             1101          (ii) without providing to the loan applicant a written statement signed by the loan
             1102      applicant:
             1103          (A) stating whether or not the fee or deposit is refundable; and
             1104          (B) describing the conditions, if any, under which all or a portion of the fee or deposit
             1105      will be refunded to the applicant;
             1106          (c) give or receive compensation or anything of value in exchange for a referral of
             1107      settlement or loan closing services related to a residential mortgage loan transaction;
             1108          (d) do any of the following to induce a lender to extend credit as part of a residential
             1109      mortgage loan transaction:
             1110          (i) make a false statement or representation;
             1111          (ii) cause false documents to be generated; or
             1112          (iii) knowingly permit false information to be submitted by any party;
             1113          (e) give or receive compensation or anything of value, or withhold or threaten to
             1114      withhold payment of an appraiser fee, to influence the independent judgment of an appraiser in
             1115      reaching a value conclusion in a residential mortgage loan transaction, except that it is not a
             1116      violation of this section for a licensee to withhold payment because of a bona fide dispute
             1117      regarding a failure of the appraiser to comply with the licensing law or the Uniform Standards
             1118      of Professional Appraisal Practice;
             1119          (f) violate or not comply with:
             1120          (i) this chapter;
             1121          (ii) an order of the commission or division; or


             1122          (iii) a rule made by the division;
             1123          (g) fail to respond within the required time period to:
             1124          (i) a notice or complaint of the division; or
             1125          (ii) a request for information from the division;
             1126          (h) make false representations to the division, including in a licensure statement;
             1127          (i) for a residential mortgage loan transaction beginning on or after January 1, 2004,
             1128      engage in the business of residential mortgage loans with respect to the transaction if the
             1129      person also acts in any of the following capacities with respect to the same residential mortgage
             1130      loan transaction:
             1131          (i) appraiser;
             1132          (ii) escrow agent;
             1133          (iii) real estate agent;
             1134          (iv) general contractor; or
             1135          (v) title insurance producer;
             1136          (j) order a title insurance report or hold a title insurance policy unless the person
             1137      provides to the title insurer a copy of a valid, current license under this chapter;
             1138          (k) engage in unprofessional conduct as defined by rule;
             1139          (l) engage in an act or omission in transacting the business of residential mortgage
             1140      loans that constitutes dishonesty, fraud, or misrepresentation;
             1141          (m) engage in false or misleading advertising;
             1142          (n) (i) fail to account for money received in connection with a residential mortgage
             1143      loan;
             1144          (ii) use money for a different purpose from the purpose for which the money is
             1145      received; or
             1146          (iii) except as provided in Subsection (4), retain money paid for services if the services
             1147      are not performed;
             1148          (o) fail, within 90 calendar days of a request from a borrower who has paid for an
             1149      appraisal, to give a copy of an appraisal ordered and used for a transaction to the borrower;


             1150          (p) engage in an act that is performed to:
             1151          (i) evade this chapter; or
             1152          (ii) assist another person to evade this chapter;
             1153          (q) recommend or encourage default, delinquency, or continuation of an existing
             1154      default or delinquency, by a mortgage applicant on an existing indebtedness before the closing
             1155      of a residential mortgage loan that will refinance all or part of the indebtedness;
             1156          (r) in the case of the [principal] lending manager of an entity or a branch office of an
             1157      entity, fail to exercise reasonable supervision over the activities of:
             1158          (i) unlicensed staff; and
             1159          (ii) a mortgage loan originator who is affiliated with the [principal] lending manager;
             1160          (s) pay or offer to pay an individual who does not hold a license under this chapter for
             1161      work that requires the individual to hold a license under this chapter;
             1162          (t) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             1163          (i) provide a title insurance product or service without the approval required by Section
             1164      31A-2-405 ; or
             1165          (ii) knowingly provide false or misleading information in the statement required by
             1166      Subsection 31A-2-405 (2);
             1167          (u) represent to the public that the person can or will perform any act of a mortgage
             1168      loan originator if that person is not licensed under this chapter because the person is exempt
             1169      under Subsection 61-2c-102 (1)[(g)](h)(ii)(A), including through:
             1170          (i) advertising;
             1171          (ii) a business card;
             1172          (iii) stationery;
             1173          (iv) a brochure;
             1174          (v) a sign;
             1175          (vi) a rate list; or
             1176          (vii) other promotional item; or
             1177          (v) (i) engage in an act of loan modification assistance without being licensed under


             1178      this chapter;
             1179          (ii) engage in an act of foreclosure rescue that requires licensure as a real estate agent
             1180      or real estate broker under Chapter 2, Division of Real Estate, without being licensed under
             1181      that chapter;
             1182          (iii) engage in an act of loan modification assistance without entering into a written
             1183      agreement specifying which one or more acts of loan modification assistance will be
             1184      completed;
             1185          (iv) request or require a person to pay a fee before obtaining:
             1186          (A) a written offer for a loan modification from the person's lender or servicer; and
             1187          (B) the person's written acceptance of the offer from the lender or servicer;
             1188          (v) induce a person seeking a loan modification to hire the licensee to engage in an act
             1189      of loan modification assistance by:
             1190          (A) suggesting to the person that the licensee has a special relationship with the
             1191      person's lender or loan servicer; or
             1192          (B) falsely representing or advertising that the licensee is acting on behalf of:
             1193          (I) a government agency;
             1194          (II) the person's lender or loan servicer; or
             1195          (III) a nonprofit or charitable institution;
             1196          (vi) recommend or participate in a loan modification that requires a person to:
             1197          (A) transfer title to real property to the licensee or to a third-party with whom the
             1198      licensee has a business relationship or financial interest;
             1199          (B) make a mortgage payment to a person other than the person's loan servicer; or
             1200          (C) refrain from contacting the person's:
             1201          (I) lender;
             1202          (II) loan servicer;
             1203          (III) attorney;
             1204          (IV) credit counselor; or
             1205          (V) housing counselor; or


             1206          (vii) for an agreement for loan modification assistance entered into on or after May 11,
             1207      2010, engage in an act of loan modification assistance without offering in writing to the person
             1208      entering into the agreement for loan modification assistance a right to cancel the agreement
             1209      within three business days after the day on which the person enters the agreement.
             1210          (2) Whether or not the crime is related to the business of residential mortgage loans, it
             1211      is a violation of this chapter for a licensee or a person who is a certified education provider to
             1212      do any of the following with respect to a criminal offense that involves moral turpitude:
             1213          (a) be convicted;
             1214          (b) plead guilty or nolo contendere;
             1215          (c) enter a plea in abeyance; or
             1216          (d) be subjected to a criminal disposition similar to the ones described in Subsections
             1217      (2)(a) through (c).
             1218          (3) A [principal] lending manager does not violate Subsection (1)(r) if:
             1219          (a) in contravention of the [principal] lending manager's written policies and
             1220      instructions, an affiliated licensee of the [principal] lending manager violates:
             1221          (i) this chapter; or
             1222          (ii) rules made by the division under this chapter;
             1223          (b) the [principal] lending manager established and followed reasonable procedures to
             1224      ensure that affiliated licensees receive adequate supervision;
             1225          (c) upon learning of a violation by an affiliated licensee, the [principal] lending
             1226      manager attempted to prevent or mitigate the damage;
             1227          (d) the [principal] lending manager did not participate in or ratify the violation by an
             1228      affiliated licensee; and
             1229          (e) the [principal] lending manager did not attempt to avoid learning of the violation.
             1230          (4) Notwithstanding Subsection (1)(n)(iii), a licensee may, upon compliance with
             1231      Section 70D-2-305 , charge a reasonable cancellation fee for work done originating a mortgage
             1232      if the mortgage is not closed.
             1233          Section 18. Section 61-2c-302 is amended to read:


             1234           61-2c-302. Record requirements.
             1235          (1) For the time period specified in Subsection (2), a licensee shall make or possess any
             1236      record required for that licensee by a rule made by the division.
             1237          (2) A licensee shall maintain and safeguard in its possession a record described in
             1238      Subsection (1) for four years from the last to occur of the following:
             1239          (a) the final entry on a residential mortgage loan is made by that licensee;
             1240          (b) if the residential mortgage loan is serviced by the licensee:
             1241          (i) the residential mortgage loan is paid in full; or
             1242          (ii) the licensee ceases to service the residential mortgage loan; or
             1243          (c) if the residential mortgage loan is not serviced by the licensee, the residential
             1244      mortgage loan is closed.
             1245          (3) A licensee shall, upon the division's request:
             1246          (a) make available to the division for inspection and copying during normal business
             1247      hours all records required to be maintained under this chapter; and
             1248          (b) [upon reasonable notice from the division to a licensee,] produce all records
             1249      described in Subsection (3)(a) that are related to an investigation being conducted by the
             1250      division at the division office for inspection and copying by the division.
             1251          (4) A licensee who is an entity shall maintain and produce for inspection by the
             1252      division a current list of all individuals whose licenses are sponsored by the entity.
             1253          (5) (a) A [licensee who engages in an activity as a mortgage loan originator] licensed
             1254      entity shall:
             1255          (i) create, for each quarter of the fiscal year, a report of condition identifying all
             1256      lending activities, including all loans closed by the entity's sponsored mortgage loan originators
             1257      during the quarter;
             1258          (ii) provide each quarterly report of condition to the nationwide database; and
             1259          (iii) maintain [a] each report of condition submitted to the nationwide database as
             1260      required by 12 U.S.C. Sec. 5104(e) for at least four years from the day on which the licensee
             1261      submits the report of condition to the nationwide database.


             1262          (b) Upon request by the division, a mortgage loan originator shall produce a report of
             1263      condition for inspection by the division.
             1264          Section 19. Section 61-2c-404 is amended to read:
             1265           61-2c-404. Civil actions.
             1266          (1) (a) A person who violates this chapter is liable for an additional penalty, as
             1267      determined by the court, of at least the amount the person received in consequence of a
             1268      violation of this chapter as:
             1269          (i) commission;
             1270          (ii) compensation; or
             1271          (iii) profit.
             1272          (b) A person aggrieved by a violation of this chapter may:
             1273          (i) bring an action for a penalty described in Subsection (1)(a); and
             1274          (ii) use a penalty obtained under Subsection (1)(a) for the person's own use and benefit.
             1275          (2) A person who is not licensed under this chapter at the time of an act or service that
             1276      requires a license under this chapter may not bring an action in court for the recovery of a
             1277      commission, fee, or compensation for that act or service.
             1278          (3) (a) A mortgage loan originator may not bring an action in the mortgage loan
             1279      originator's own name for the recovery of a fee, commission, or compensation for transacting
             1280      the business of residential mortgage loans unless the action is brought against the [principal
             1281      lending manager with whom] entity by which the mortgage loan originator is [licensed]
             1282      sponsored at the time of the act or service that is the subject of the action.
             1283          (b) An action by an entity for the recovery of a fee, commission, or other compensation
             1284      shall be brought by:
             1285          (i) an entity; or
             1286          (ii) the principal lending manager of an entity on behalf of the entity.
             1287          (4) A principal lending manager who transacts the business of residential mortgage
             1288      loans on the principal lending manager's own behalf may sue in the principal lending manager's
             1289      own name for the recovery of a fee, commission, or compensation for transacting the business


             1290      of residential mortgage loans.
             1291          Section 20. Section 61-2e-104 is amended to read:
             1292           61-2e-104. Exemption.
             1293          This chapter does not apply to:
             1294          (1) an entity that:
             1295          (a) exclusively employs an individual on an employer-employee basis for the
             1296      performance of a real estate appraisal activity in the normal course of the entity's business;
             1297      [and]
             1298          (b) is responsible for ensuring that the real estate appraisal activity being performed by
             1299      an employee is performed in accordance with applicable appraisal standards; and
             1300          (c) is an appraisal management company that is a subsidiary owned and controlled by a
             1301      financial institution regulated by a federal financial institution regulatory agency;
             1302          (2) an individual who:
             1303          (a) is an appraiser; and
             1304          (b) in the normal course of business enters into an agreement, whether written or
             1305      otherwise, with another appraiser for the performance of a real estate appraisal activity that the
             1306      individual cannot complete for any reason, including:
             1307          (i) competency;
             1308          (ii) work load;
             1309          (iii) schedule; or
             1310          (iv) geographic location; or
             1311          (3) an individual who:
             1312          (a) in the normal course of business enters into an agreement, whether written or
             1313      otherwise, with an appraiser for the performance of a real estate appraisal activity; and
             1314          (b) under the agreement, cosigns the report of the appraiser performing the real estate
             1315      appraisal activity upon the completion of the real estate appraisal activity[; or].
             1316          [(4) an appraisal management company that contracts with one or more appraisers for
             1317      the performance of fewer than 10 appraisals in this state in a calendar year.]


             1318          Section 21. Section 61-2e-201 is amended to read:
             1319           61-2e-201. Registration required -- Qualification for registration.
             1320          (1) Unless exempted under Section 61-2e-104 , an appraisal management company is
             1321      required to register under this chapter if the company:
             1322          (a) contracts with one or more appraisers for the performance of 10 or more appraisals
             1323      in the state in a calendar year; or
             1324          (b) oversees a network or panel of more than 15 appraisers certified or licensed in the
             1325      state.
             1326          [(1)] (2) Unless registered under this chapter or exempt under Section 61-2e-104 , an
             1327      entity may not with regard to a real estate appraisal activity for real estate located in this state:
             1328          (a) directly or indirectly engage or attempt to engage in business as an appraisal
             1329      management company;
             1330          (b) directly or indirectly engage or attempt to perform an appraisal management
             1331      service; or
             1332          (c) advertise or hold itself out as engaging in or conducting business as an appraisal
             1333      management company.
             1334          [(2)] (3) To qualify to be registered as an appraisal management company under this
             1335      chapter:
             1336          (a) each individual who owns, directly or indirectly, more than 10% of the appraisal
             1337      management company shall:
             1338          (i) be of good moral character, as determined by the board; and
             1339          (ii) not have had a license or certificate to engage in an act related to a real estate or
             1340      mortgage transaction refused, denied, canceled, or revoked in this state or in another state; and
             1341          (b) the appraisal management company shall designate a main contact for
             1342      communication between the appraisal management company and either the board or division
             1343      who:
             1344          (i) is a controlling person;
             1345          (ii) is of good moral character, as determined by the board; and


             1346          (iii) has not had a license or certificate to engage in an act related to a real estate or
             1347      mortgage transaction refused, denied, canceled, or revoked in this state or in another state.
             1348          [(3)] (4) This section applies without regard to whether the entity uses the term:
             1349          (a) "appraisal management company";
             1350          (b) "mortgage technology company"; or
             1351          (c) another name.
             1352          Section 22. Section 61-2e-204 is amended to read:
             1353           61-2e-204. Renewal of a registration.
             1354          (1) (a) A registration under this chapter expires two years from the day on which the
             1355      registration is filed.
             1356          (b) Notwithstanding Subsection (1)(a), the time period of a registration may be
             1357      extended or shortened by as much as one year to maintain or change a renewal cycle
             1358      established by rule by the division.
             1359          (2) To renew a registration under this chapter, before the day on which the registration
             1360      expires, an appraisal management company shall:
             1361          (a) file with the division a renewal registration application on a form prescribed by the
             1362      division; [and]
             1363          (b) pay to the division a fee determined in accordance with Section 63J-1-504 [.]; and
             1364          (c) file with the division a certificate evidencing that the appraisal management
             1365      company has secured and will maintain a surety bond with one or more corporate sureties
             1366      authorized to do business in the state in the amount of at least $25,000, as the division provides
             1367      by rule.
             1368          (3) A renewal registration application shall include substantially similar information to
             1369      the information required under Section 61-2e-202 , except that for an individual described in
             1370      Subsection 61-2e-202 (2)(e) or (g), the entity is required to report whether the individual has
             1371      had:
             1372          (a) (i) a conviction of a criminal offense;
             1373          (ii) the entry of a plea in abeyance to a criminal offense; or


             1374          (iii) the potential resolution of a criminal case by:
             1375          (A) a diversion agreement; or
             1376          (B) another agreement under which a criminal charge is held in suspense for a period
             1377      of time;
             1378          (b) a filing of personal bankruptcy or bankruptcy of a business that transacts the
             1379      appraisal management services;
             1380          (c) the suspension, revocation, surrender, cancellation, or denial of a professional
             1381      license or certification, whether the license or registration is issued by this state or another
             1382      jurisdiction; or
             1383          (d) the entry of a cease and desist order or a temporary or permanent injunction:
             1384          (i) against the individual by a court or government agency; and
             1385          (ii) on the basis of:
             1386          (A) conduct or a practice involving the business of appraisal management services; or
             1387          (B) conduct involving fraud, misrepresentation, or deceit.
             1388          (4) A registration expires if it is not renewed on or before its expiration date, except
             1389      that for a period of 30 days after the expiration date, the registration may be reinstated upon
             1390      compliance with this section, including payment of a renewal fee and a late fee determined by
             1391      the division and the board.
             1392          (5) Notwithstanding Subsection (4), the division may extend the term of a license that
             1393      would expire under Subsection (4) except for the extension if:
             1394          (a) (i) the person complies with the requirements of this section to renew the
             1395      registration; and
             1396          (ii) the renewal application remains pending at the time of the extension; or
             1397          (b) at the time of the extension, there is pending under this chapter a disciplinary
             1398      action.
             1399          Section 23. Section 61-2e-307 is amended to read:
             1400           61-2e-307. Prohibited acts -- Exclusions.
             1401          (1) An appraisal management company required to be registered under this chapter and


             1402      a controlling person, employee, or agent of the appraisal management company may not:
             1403          (a) engage in an act of coercion, extortion, intimidation, or bribery for any purpose
             1404      related to an appraisal;
             1405          (b) compensate an appraiser in a manner that the person should reasonably know
             1406      would result in the appraiser not conducting a real estate appraisal activity in a manner
             1407      consistent with applicable appraisal standards;
             1408          (c) engage in the business of an appraisal management company under an assumed or
             1409      fictitious name not properly registered in the state;
             1410          (d) accept a contingent fee for performing an appraisal management service if the fee is
             1411      contingent on:
             1412          (i) the appraisal report having a predetermined analysis, opinion, or conclusion;
             1413          (ii) the analysis, opinion, conclusion, or valuation reached in an appraisal report; or
             1414          (iii) the consequences resulting from the appraisal assignment;
             1415          (e) require an appraiser to indemnify the appraisal management company against
             1416      liability except liability for errors and omissions by the appraiser; or
             1417          (f) alter, modify, or otherwise change a completed appraisal report submitted by an
             1418      appraiser.
             1419          [(1)] (2) An appraisal management company required to be registered under this
             1420      chapter, or a controlling person, employee, or agent of the appraisal management company may
             1421      not influence or attempt to influence the development, reporting, or review of an appraisal
             1422      through:
             1423          (a) coercion;
             1424          (b) extortion;
             1425          (c) collusion;
             1426          (d) compensation;
             1427          (e) instruction;
             1428          (f) inducement;
             1429          (g) intimidation;


             1430          (h) bribery; or
             1431          (i) any other manner that would constitute undue influence.
             1432          [(2)] (3) A violation of Subsection [(1)] (2) includes doing one or more of the
             1433      following for a purpose listed in Subsection [(1)] (2):
             1434          (a) withholding or threatening to withhold timely payment for an appraisal;
             1435          (b) withholding or threatening to withhold future business for an appraiser;
             1436          (c) taking adverse action or threatening to take adverse action against an appraiser
             1437      regarding use of the appraiser for a real estate appraisal activity;
             1438          (d) expressly or by implication promising future business or increased compensation
             1439      for an appraiser;
             1440          (e) conditioning one or more of the following on the opinion, conclusion, or valuation
             1441      to be reached, or on a preliminary estimate or opinion requested from an appraiser:
             1442          (i) a request for a real estate appraisal activity; or
             1443          (ii) the payment of consideration;
             1444          (f) requesting that an appraiser provide at any time before the appraiser's completion of
             1445      a real estate appraisal activity:
             1446          (i) an estimated, predetermined, or desired valuation in an appraisal report; or
             1447          (ii) an estimated value or comparable sale;
             1448          (g) except for a copy of a sales contract for a purchase transaction, providing to an
             1449      appraiser:
             1450          (i) an anticipated, estimated, encouraged, or desired value for a subject property; or
             1451          (ii) a proposed or target amount to be loaned to the borrower;
             1452          (h) providing to an appraiser, or an individual related to the appraiser, stock or other
             1453      financial or non-financial benefits;
             1454          (i) allowing the removal of an appraiser from an appraiser panel, without prior written
             1455      notice to the appraiser as required by Section 61-2e-306 ;
             1456          (j) obtaining, using, or paying for a subsequent appraisal or ordering an automated
             1457      valuation model in connection with a mortgage financing transaction unless:


             1458          (i) (A) there is a reasonable basis to believe that the initial appraisal does not meet
             1459      applicable appraisal standards; and
             1460          (B) the reasonable basis is noted in the loan file; or
             1461          (ii) the subsequent appraisal or automated valuation model is done pursuant to a pre- or
             1462      post-funding appraisal review or quality control process in accordance with applicable
             1463      appraisal standards; or
             1464          [(k) compensating an appraiser in a manner that the person should reasonably have
             1465      known would result in the appraiser not conducting a real estate appraisal activity in a manner
             1466      consistent with applicable appraisal standards;]
             1467          [(l) engaging in the business of an appraisal management company under an assumed
             1468      or fictitious name not properly registered in this state;]
             1469          [(m) accepting a contingent fee for performing an appraisal management service if the
             1470      fee is contingent on:]
             1471          [(i) the appraiser report having a predetermined analysis, opinion, or conclusion;]
             1472          [(ii) the analysis, opinion, conclusion, or valuation reached in an appraisal report; or]
             1473          [(iii) the consequences resulting from the appraisal assignment; or]
             1474          [(n)] (k) engaging in any other act or practice that impairs or attempts to impair an
             1475      appraiser's independence, objectivity, or impartiality.
             1476          [(3) An appraisal management company required to be registered under this chapter, or
             1477      a controlling person, employee, or agent of the appraisal management company, may not
             1478      require an appraiser to indemnify the appraisal management company against liability except
             1479      liability for errors and omissions by the appraiser.]
             1480          (4) This section may not be construed to prohibit an appraisal management company
             1481      from requesting that an appraiser:
             1482          (a) provide additional information about the basis for a valuation; or
             1483          (b) correct an objective factual error in an appraisal report.
             1484          [(5) An appraisal management company required to be registered under this chapter, or
             1485      a controlling person, employee, or agent of the appraisal management company may not alter,


             1486      modify, or otherwise change a completed appraisal report submitted by an appraiser.]
             1487          Section 24. Section 61-2e-401 is amended to read:
             1488           61-2e-401. Division authority -- Immunity.
             1489          (1) (a) In addition to a power or duty expressly provided in this chapter, the division
             1490      may:
             1491          (i) receive and act on a complaint including:
             1492          (A) taking action designed to obtain voluntary compliance with this chapter, including
             1493      the issuance of a cease and desist order if the person against whom the order is issued is given
             1494      the right to petition the board for review of the order; or
             1495          (B) commencing an administrative or judicial proceeding on the division's own
             1496      initiative;
             1497          (ii) investigate an entity required to be registered under this chapter, regardless of
             1498      whether the entity is located in Utah; and
             1499          (iii) employ one or more investigators, clerks, or other employees or agents if:
             1500          (A) approved by the executive director; and
             1501          (B) within the budget of the division.
             1502          (b) A failure to respond to a request by the division in an investigation under this
             1503      chapter is considered to be a separate violation of this chapter, including:
             1504          (i) failing to respond to a subpoena;
             1505          (ii) withholding evidence; or
             1506          (iii) failing to produce a document or record.
             1507          (2) (a) If a person is found to have violated this chapter or a rule made under this
             1508      chapter, the person shall pay the costs incurred by the division to copy a book, paper, contract,
             1509      document, or record required under this chapter, including the costs incurred to copy an
             1510      electronic book, paper, contract, document, or record in a universally readable format.
             1511          (b) If a person fails to pay the costs described in Subsection (2)(a) when due, the
             1512      person's registration is automatically suspended:
             1513          (i) beginning the day on which the payment of costs is due; and


             1514          (ii) ending the day on which the costs are paid.
             1515          (3) The division is immune from a civil action or criminal prosecution for initiating or
             1516      assisting in a lawful investigation of an act or participating in a disciplinary proceeding under
             1517      this chapter if the division takes the action:
             1518          (a) without malicious intent; and
             1519          (b) in the reasonable belief that the action is taken pursuant to the powers and duties
             1520      vested in the division under this chapter.
             1521          Section 25. Section 61-2f-102 is amended to read:
             1522           61-2f-102. Definitions.
             1523          As used in this chapter:
             1524          (1) "Associate broker" means an individual who is:
             1525          (a) employed or engaged as an independent contractor by or on behalf of a principal
             1526      broker to perform an act set out in Subsection (18) for valuable consideration; and
             1527          (b) licensed under this chapter as an associate broker.
             1528          (2) "Branch office" means a principal broker's real estate brokerage office that is not
             1529      the principal broker's main office.
             1530          (3) "Business day" means a day other than:
             1531          (a) a Saturday;
             1532          (b) a Sunday; or
             1533          (c) a federal or state holiday.
             1534          (4) "Business opportunity" means the sale, lease, or exchange of any business that
             1535      includes an interest in real estate.
             1536          (5) "Commission" means the Real Estate Commission established under this chapter.
             1537          (6) "Concurrence" means the entities given a concurring role must jointly agree for
             1538      action to be taken.
             1539          (7) "Condominium unit" is as defined in Section 57-8-3 .
             1540          (8) "Condominium homeowners' association" means the condominium unit owners
             1541      acting as a group in accordance with declarations and bylaws.


             1542          (9) (a) "Condominium hotel" means one or more condominium units that are operated
             1543      as a hotel.
             1544          (b) "Condominium hotel" does not mean a hotel consisting of condominium units, all
             1545      of which are owned by a single entity.
             1546          (10) "Director" means the director of the Division of Real Estate.
             1547          (11) "Division" means the Division of Real Estate.
             1548          (12) "Entity" means:
             1549          (a) a corporation;
             1550          (b) a partnership;
             1551          (c) a limited liability company;
             1552          (d) a company;
             1553          (e) an association;
             1554          (f) a joint venture;
             1555          (g) a business trust;
             1556          (h) a trust; or
             1557          (i) any organization similar to an entity described in Subsections (12)(a) through (h).
             1558          (13) "Executive director" means the director of the Department of Commerce.
             1559          (14) "Foreclosure rescue" means, for compensation or with the expectation of receiving
             1560      valuable consideration, to:
             1561          (a) engage, or offer to engage, in an act that:
             1562          (i) the person represents will assist a borrower in preventing a foreclosure; and
             1563          (ii) relates to a transaction involving the transfer of title to residential real property; or
             1564          (b) as an employee or agent of another person:
             1565          (i) solicit, or offer that the other person will engage in an act described in Subsection
             1566      (14)(a); or
             1567          (ii) negotiate terms in relationship to an act described in Subsection (14)(a).
             1568          (15) "Loan modification assistance" means, for compensation or with the expectation
             1569      of receiving valuable consideration, to:


             1570          (a) act, or offer to act, on behalf of a person to:
             1571          (i) obtain a loan term of a residential mortgage loan that is different from an existing
             1572      loan term including:
             1573          (A) an increase or decrease in an interest rate;
             1574          (B) a change to the type of interest rate;
             1575          (C) an increase or decrease in the principal amount of the residential mortgage loan;
             1576          (D) a change in the number of required period payments;
             1577          (E) an addition of collateral;
             1578          (F) a change to, or addition of, a prepayment penalty;
             1579          (G) an addition of a cosigner; or
             1580          (H) a change in persons obligated under the existing residential mortgage loan; or
             1581          (ii) substitute a new residential mortgage loan for an existing residential mortgage loan;
             1582      or
             1583          (b) as an employee or agent of another person:
             1584          (i) solicit, or offer that the other person will engage in an act described in Subsection
             1585      (15)(a); or
             1586          (ii) negotiate terms in relationship to an act described in Subsection (15)(a).
             1587          (16) "Main office" means the address which a principal broker designates with the
             1588      division as the principal broker's primary brokerage office.
             1589          (17) "Person" means an individual or entity.
             1590          (18) "Principal broker" means an individual who is licensed as a principal broker under
             1591      this chapter and who:
             1592          (a) (i) sells or lists for sale real estate, including real estate being sold as part of a
             1593      foreclosure rescue, or a business opportunity [for sale] with the expectation of receiving
             1594      valuable consideration;
             1595          (ii) buys, exchanges, or auctions real estate, an option on real estate, a business
             1596      opportunity, or an improvement on real estate with the expectation of receiving valuable
             1597      consideration; or


             1598          (iii) advertises, offers, attempts, or otherwise holds the individual out to be engaged in
             1599      the business described in Subsection (18)(a)(i) or (ii);
             1600          (b) is employed by or on behalf of the owner of real estate or by a prospective
             1601      purchaser of real estate and performs an act described in Subsection (18)(a), whether the
             1602      individual's compensation is at a stated salary, a commission basis, upon a salary and
             1603      commission basis, or otherwise;
             1604          (c) (i) with the expectation of receiving valuable consideration, manages property
             1605      owned by another person; or
             1606          (ii) advertises or otherwise holds the individual out to be engaged in property
             1607      management;
             1608          (d) with the expectation of receiving valuable consideration, assists or directs in the
             1609      procurement of prospects for or the negotiation of a transaction listed in Subsections (18)(a)
             1610      and (c);
             1611          (e) except for a mortgage lender, title insurance producer, or an employee of a
             1612      mortgage lender or title insurance producer, assists or directs in the closing of a real estate
             1613      transaction with the expectation of receiving valuable consideration; or
             1614          (f) (i) engages in foreclosure rescue; or
             1615          (ii) advertises, offers, attempts, or otherwise holds the person out as being engaged in
             1616      foreclosure rescue.
             1617          (19) (a) "Property management" means engaging in, with the expectation of receiving
             1618      valuable consideration, the management of real estate owned by another person or advertising
             1619      or otherwise claiming to be engaged in property management by:
             1620          (i) advertising for, arranging, negotiating, offering, or otherwise attempting or
             1621      participating in a transaction calculated to secure the rental or leasing of real estate;
             1622          (ii) collecting, agreeing, offering, or otherwise attempting to collect rent for the real
             1623      estate and accounting for and disbursing the money collected; or
             1624          (iii) authorizing expenditures for repairs to the real estate.
             1625          (b) "Property management" does not include:


             1626          (i) hotel or motel management;
             1627          (ii) rental of tourist accommodations, including hotels, motels, tourist homes,
             1628      condominiums, condominium hotels, mobile home park accommodations, campgrounds, or
             1629      similar public accommodations for a period of less than 30 consecutive days, and the
             1630      management activities associated with these rentals; or
             1631          (iii) the leasing or management of surface or subsurface minerals or oil and gas
             1632      interests, if the leasing or management is separate from a sale or lease of the surface estate.
             1633          (20) "Real estate" includes leaseholds and business opportunities involving real
             1634      property.
             1635          (21) (a) "Regular salaried employee" means an individual who performs a service for
             1636      wages or other remuneration, whose employer withholds federal employment taxes under a
             1637      contract of hire, written or oral, express or implied.
             1638          (b) "Regular salaried employee" does not include an individual who performs services
             1639      on a project-by-project basis or on a commission basis.
             1640          (22) "Reinstatement" means restoring a license that has expired or has been suspended.
             1641          (23) "Reissuance" means the process by which a licensee may obtain a license
             1642      following revocation of the license.
             1643          (24) "Renewal" means extending a license for an additional licensing period on or
             1644      before the date the license expires.
             1645          (25) "Sales agent" means an individual who is:
             1646          (a) affiliated with a principal broker, either as an independent contractor or an
             1647      employee as provided in Section 61-2f-303 , to perform for valuable consideration an act
             1648      described in Subsection (18); and
             1649          (b) licensed under this chapter as a sales agent.
             1650          (26) (a) "Undivided fractionalized long-term estate" means an ownership interest in
             1651      real property by two or more persons that is:
             1652          (i) a tenancy in common; or
             1653          (ii) any other legal form of undivided estate in real property including:


             1654          (A) a fee estate;
             1655          (B) a life estate; or
             1656          (C) other long-term estate.
             1657          (b) "Undivided fractionalized long-term estate" does not include a joint tenancy.
             1658          Section 26. Section 61-2f-203 is amended to read:
             1659           61-2f-203. Licensing requirements.
             1660          (1) (a) (i) The division shall determine whether an applicant with a criminal history
             1661      qualifies for licensure.
             1662          (ii) If the division, acting under Subsection (1)(a)(i), denies or restricts a license or
             1663      places a license on probation, the applicant may petition the commission for de novo review of
             1664      the application.
             1665          [(1) (a)] (b) Except as provided in Subsection (5), the commission shall determine [the]
             1666      all other qualifications and requirements of an applicant for:
             1667          (i) a principal broker license;
             1668          (ii) an associate broker license; or
             1669          (iii) a sales agent license.
             1670          [(b)] (c) The division, with the concurrence of the commission, shall require and pass
             1671      upon proof necessary to determine the honesty, integrity, truthfulness, reputation, and
             1672      competency of each applicant for an initial license or for renewal of an existing license.
             1673          [(c)] (d) (i) The division, with the concurrence of the commission, shall require an
             1674      applicant for:
             1675          (A) a sales agent license to complete an approved educational program consisting of
             1676      the number of hours designated by rule made by the commission with the concurrence of the
             1677      division, except that the rule may not require less than 120 hours; and
             1678          (B) an associate broker or a principal broker license to complete an approved
             1679      educational program consisting of the number of hours designated by rule made by the
             1680      commission with the concurrence of the division, except that the rule may not require less than
             1681      120 hours.


             1682          (ii) An hour required by this section means 50 minutes of instruction in each 60
             1683      minutes.
             1684          (iii) The maximum number of program hours available to an individual is eight hours
             1685      per day.
             1686          [(d)] (e) The division, with the concurrence of the commission, shall require the
             1687      applicant to pass an examination approved by the commission covering:
             1688          (i) the fundamentals of:
             1689          (A) the English language;
             1690          (B) arithmetic;
             1691          (C) bookkeeping; and
             1692          (D) real estate principles and practices;
             1693          (ii) this chapter;
             1694          (iii) the rules established by the commission; and
             1695          (iv) any other aspect of Utah real estate license law considered appropriate.
             1696          [(e)] (f) (i) Three years' full-time experience as a sales agent or its equivalent is
             1697      required before an applicant may apply for, and secure a principal broker or associate broker
             1698      license in this state.
             1699          (ii) The commission shall establish by rule, made in accordance with Title 63G,
             1700      Chapter 3, Utah Administrative Rulemaking Act, the criteria by which the commission will
             1701      accept experience or special education in similar fields of business in lieu of the three years'
             1702      experience.
             1703          (2) (a) The division, with the concurrence of the commission, may require an applicant
             1704      to furnish a sworn statement setting forth evidence satisfactory to the division of the applicant's
             1705      reputation and competency as set forth by rule.
             1706          (b) The division shall require an applicant to provide the applicant's Social Security
             1707      number, which is a private record under Subsection 63G-2-302 (1)(h).
             1708          (3) (a) An individual who is not a resident of this state may be licensed in this state if
             1709      the person complies with this chapter.


             1710          (b) An individual who is not a resident of this state may be licensed as an associate
             1711      broker or sales agent in this state by:
             1712          (i) complying with this chapter; and
             1713          (ii) being employed or engaged as an independent contractor by or on behalf of a
             1714      principal broker who is licensed in this state, regardless of whether the principal broker is a
             1715      resident of this state.
             1716          (4) (a) The division and commission shall treat an application to be relicensed of an
             1717      applicant whose real estate license is revoked as an original application.
             1718          (b) In the case of an applicant for a new license as a principal broker or associate
             1719      broker, the applicant is not entitled to credit for experience gained before the revocation of a
             1720      real estate license.
             1721          (5) (a) Notwithstanding Subsection (1)(b), the commission may delegate to the division
             1722      the authority to:
             1723          (i) review a class or category of applications for initial or renewed licenses;
             1724          (ii) determine whether an applicant meets the licensing criteria in Subsection (1); and
             1725          (iii) approve or deny a license application without concurrence by the commission.
             1726          (b) (i) If the commission delegates to the division the authority to approve or deny an
             1727      application without concurrence by the commission and the division denies an application for
             1728      licensure, the applicant who is denied licensure may petition the commission for de novo
             1729      review of the application.
             1730          (ii) An applicant who is denied licensure pursuant to this Subsection (5) may seek
             1731      agency review by the executive director only after the commission has reviewed the division's
             1732      denial of the applicant's application.
             1733          Section 27. Section 61-2f-301 is amended to read:
             1734           61-2f-301. Reporting requirements.
             1735          (1) A licensee shall notify the division of the following by sending the division a
             1736      signed statement within 10 business days of:
             1737          (a) [(i)] a conviction of, or the entry of a plea in abeyance to:


             1738          (i) a felony[, class A misdemeanor, or class B misdemeanor]; or
             1739          (ii) a misdemeanor involving financial services or a financial services-related business,
             1740      fraud, a false statement or omission, theft or wrongful taking of property, bribery, perjury,
             1741      forgery, counterfeiting, or extortion;
             1742          [(ii) the entry of a plea in abeyance to a felony, class A misdemeanor, or class B
             1743      misdemeanor; or]
             1744          [(iii)] (b) the potential resolution of a felony[, class A] or of a misdemeanor[, or class B
             1745      misdemeanor] described in Subsection (1)(a)(ii) by:
             1746          [(A)] (i) a diversion agreement; or
             1747          [(B)] (ii) another agreement under which a criminal charge is held in suspense for a
             1748      period of time;
             1749          [(b)] (c) the filing of a personal or brokerage bankruptcy, if the licensee is a principal
             1750      broker;
             1751          [(c)] (d) the suspension, revocation, surrender, cancellation, or denial of a license or
             1752      registration of the licensee that is necessary to engage in an occupation or profession,
             1753      regardless of whether the license or registration is issued by this state or another jurisdiction; or
             1754          [(d)] (e) the entry of a cease and desist order or a temporary or permanent injunction:
             1755          (i) against the licensee by a court or administrative agency; and
             1756          (ii) on the basis of:
             1757          (A) conduct or a practice involving the business of real estate; or
             1758          (B) conduct involving fraud, misrepresentation, or deceit.
             1759          (2) The commission, with the concurrence of the director, shall enforce the reporting
             1760      requirement under this section pursuant to Section 61-2f-404 .
             1761          Section 28. Section 61-2f-401 (Superseded 07/01/12) is amended to read:
             1762           61-2f-401 (Superseded 07/01/12). Grounds for disciplinary action.
             1763          The following acts are unlawful for a person licensed or required to be licensed under
             1764      this chapter:
             1765          (1) (a) making a substantial misrepresentation;


             1766          (b) making an intentional misrepresentation;
             1767          (c) pursuing a continued and flagrant course of misrepresentation;
             1768          (d) making a false representation or promise through an agent, sales agent, advertising,
             1769      or otherwise; or
             1770          (e) making a false representation or promise of a character likely to influence,
             1771      persuade, or induce;
             1772          (2) acting for more than one party in a transaction without the informed consent of the
             1773      parties;
             1774          (3) (a) acting as an associate broker or sales agent while not affiliated with a principal
             1775      broker;
             1776          (b) representing or attempting to represent a principal broker other than the principal
             1777      broker with whom the person is affiliated; or
             1778          (c) representing as sales agent or having a contractual relationship similar to that of
             1779      sales agent with a person other than a principal broker;
             1780          (4) (a) failing, within a reasonable time, to account for or to remit money that belongs
             1781      to another and comes into the person's possession;
             1782          (b) commingling money described in Subsection (4)(a) with the person's own money;
             1783      or
             1784          (c) diverting money described in Subsection (4)(a) from the purpose for which the
             1785      money is received;
             1786          (5) paying or offering to pay valuable consideration, as defined by the commission, to a
             1787      person not licensed under this chapter, except that valuable consideration may be shared:
             1788          (a) with a principal broker of another jurisdiction; or
             1789          (b) as provided under:
             1790          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act;
             1791          (ii) Title 16, Chapter 11, Professional Corporation Act; or
             1792          (iii) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act;
             1793          (6) being incompetent to act as a principal broker, associate broker, or sales agent in


             1794      such manner as to safeguard the interests of the public;
             1795          (7) failing to voluntarily furnish a copy of a document to the parties before and after the
             1796      execution of a document;
             1797          (8) failing to keep and make available for inspection by the division a record of each
             1798      transaction, including:
             1799          (a) the names of buyers and sellers or lessees and lessors;
             1800          (b) the identification of real estate;
             1801          (c) the sale or rental price;
             1802          (d) money received in trust;
             1803          (e) agreements or instructions from buyers and sellers or lessees and lessors; and
             1804          (f) any other information required by rule;
             1805          (9) failing to disclose, in writing, in the purchase, sale, or rental of real estate, whether
             1806      the purchase, sale, or rental is made for that person or for an undisclosed principal;
             1807          (10) being convicted of a criminal offense involving moral turpitude within five years
             1808      of the most recent application:
             1809          (a) regardless of whether the criminal offense is related to real estate; and
             1810          (b) including:
             1811          (i) a conviction based upon a plea of nolo contendere; or
             1812          (ii) a plea held in abeyance to a criminal offense involving moral turpitude;
             1813          (11) advertising the availability of real estate or the services of a licensee in a false,
             1814      misleading, or deceptive manner;
             1815          (12) in the case of a principal broker or a licensee who is a branch manager, failing to
             1816      exercise reasonable supervision over the activities of the principal broker's or branch manager's
             1817      licensed or unlicensed staff;
             1818          (13) violating or disregarding:
             1819          (a) this chapter;
             1820          (b) an order of the commission; or
             1821          (c) the rules adopted by the commission and the division;


             1822          (14) breaching a fiduciary duty owed by a licensee to the licensee's principal in a real
             1823      estate transaction;
             1824          (15) any other conduct which constitutes dishonest dealing;
             1825          (16) unprofessional conduct as defined by statute or rule;
             1826          (17) having one of the following suspended, revoked, surrendered, or cancelled on the
             1827      basis of misconduct in a professional capacity that relates to character, honesty, integrity, or
             1828      truthfulness:
             1829          (a) a real estate license, registration, or certificate issued by another jurisdiction; or
             1830          (b) another license, registration, or certificate to engage in an occupation or profession
             1831      issued by this state or another jurisdiction;
             1832          (18) failing to respond to a request by the division in an investigation authorized under
             1833      this chapter, including:
             1834          (a) failing to respond to a subpoena;
             1835          (b) withholding evidence; or
             1836          (c) failing to produce documents or records;
             1837          (19) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             1838          (a) providing a title insurance product or service without the approval required by
             1839      Section 31A-2-405 ; or
             1840          (b) knowingly providing false or misleading information in the statement required by
             1841      Subsection 31A-2-405 (2);
             1842          (20) violating an independent contractor agreement between a principal broker and a
             1843      sales agent or associate broker as evidenced by a final judgment of a court; or
             1844          [(21) (a) engaging in a foreclosure rescue if not licensed under this chapter;]
             1845          [(b)] (21) (a) engaging in an act of loan modification assistance that requires licensure
             1846      as a mortgage officer under Chapter 2c, Utah Residential Mortgage Practices and Licensing
             1847      Act, without being licensed under that chapter;
             1848          [(c)] (b) engaging in an act of foreclosure rescue without entering into a written
             1849      agreement specifying what one or more acts of foreclosure rescue will be completed;


             1850          [(d) requesting or requiring a person to pay a fee for a foreclosure rescue service before
             1851      obtaining a written agreement:]
             1852          [(i) between the person and the person's lender or servicer; and]
             1853          [(ii) by which title to the residential real estate at risk of foreclosure will be
             1854      transferred;]
             1855          [(e)] (c) inducing a person who is at risk of foreclosure to hire the licensee to engage in
             1856      an act of foreclosure rescue by:
             1857          (i) suggesting to the person that the licensee has a special relationship with the person's
             1858      lender or loan servicer; or
             1859          (ii) falsely representing or advertising that the licensee is acting on behalf of:
             1860          (A) a government agency;
             1861          (B) the person's lender or loan servicer; or
             1862          (C) a nonprofit or charitable institution; or
             1863          [(f)] (d) recommending or participating in a foreclosure rescue that requires a person
             1864      to:
             1865          (i) transfer title to real estate to the licensee or to a third-party with whom the licensee
             1866      has a business relationship or financial interest;
             1867          (ii) make a mortgage payment to a person other than the person's loan servicer; or
             1868          (iii) refrain from contacting the person's:
             1869          (A) lender;
             1870          (B) loan servicer;
             1871          (C) attorney;
             1872          (D) credit counselor; or
             1873          (E) housing counselor[; or].
             1874          [(22) for an agreement for foreclosure rescue entered into on or after May 11, 2010,
             1875      engaging in an act of foreclosure rescue without offering in writing to the person entering into
             1876      the agreement for foreclosure rescue a right to cancel the agreement within three business days
             1877      after the day on which the person enters the agreement.]


             1878          Section 29. Section 61-2f-401 (Effective 07/01/12) is amended to read:
             1879           61-2f-401 (Effective 07/01/12). Grounds for disciplinary action.
             1880          The following acts are unlawful for a person licensed or required to be licensed under
             1881      this chapter:
             1882          (1) (a) making a substantial misrepresentation;
             1883          (b) making an intentional misrepresentation;
             1884          (c) pursuing a continued and flagrant course of misrepresentation;
             1885          (d) making a false representation or promise through an agent, sales agent, advertising,
             1886      or otherwise; or
             1887          (e) making a false representation or promise of a character likely to influence,
             1888      persuade, or induce;
             1889          (2) acting for more than one party in a transaction without the informed consent of the
             1890      parties;
             1891          (3) (a) acting as an associate broker or sales agent while not affiliated with a principal
             1892      broker;
             1893          (b) representing or attempting to represent a principal broker other than the principal
             1894      broker with whom the person is affiliated; or
             1895          (c) representing as sales agent or having a contractual relationship similar to that of
             1896      sales agent with a person other than a principal broker;
             1897          (4) (a) failing, within a reasonable time, to account for or to remit money that belongs
             1898      to another and comes into the person's possession;
             1899          (b) commingling money described in Subsection (4)(a) with the person's own money;
             1900      or
             1901          (c) diverting money described in Subsection (4)(a) from the purpose for which the
             1902      money is received;
             1903          (5) paying or offering to pay valuable consideration, as defined by the commission, to a
             1904      person not licensed under this chapter, except that valuable consideration may be shared:
             1905          (a) with a principal broker of another jurisdiction; or


             1906          (b) as provided under:
             1907          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act;
             1908          (ii) Title 16, Chapter 11, Professional Corporation Act; or
             1909          (iii) Title 48, Chapter 3, Utah Revised Uniform Limited Liability Company Act;
             1910          (6) being incompetent to act as a principal broker, associate broker, or sales agent in
             1911      such manner as to safeguard the interests of the public;
             1912          (7) failing to voluntarily furnish a copy of a document to the parties before and after the
             1913      execution of a document;
             1914          (8) failing to keep and make available for inspection by the division a record of each
             1915      transaction, including:
             1916          (a) the names of buyers and sellers or lessees and lessors;
             1917          (b) the identification of real estate;
             1918          (c) the sale or rental price;
             1919          (d) money received in trust;
             1920          (e) agreements or instructions from buyers and sellers or lessees and lessors; and
             1921          (f) any other information required by rule;
             1922          (9) failing to disclose, in writing, in the purchase, sale, or rental of real estate, whether
             1923      the purchase, sale, or rental is made for that person or for an undisclosed principal;
             1924          (10) being convicted of a criminal offense involving moral turpitude within five years
             1925      of the most recent application:
             1926          (a) regardless of whether the criminal offense is related to real estate; and
             1927          (b) including:
             1928          (i) a conviction based upon a plea of nolo contendere; or
             1929          (ii) a plea held in abeyance to a criminal offense involving moral turpitude;
             1930          (11) advertising the availability of real estate or the services of a licensee in a false,
             1931      misleading, or deceptive manner;
             1932          (12) in the case of a principal broker or a licensee who is a branch manager, failing to
             1933      exercise reasonable supervision over the activities of the principal broker's or branch manager's


             1934      licensed or unlicensed staff;
             1935          (13) violating or disregarding:
             1936          (a) this chapter;
             1937          (b) an order of the commission; or
             1938          (c) the rules adopted by the commission and the division;
             1939          (14) breaching a fiduciary duty owed by a licensee to the licensee's principal in a real
             1940      estate transaction;
             1941          (15) any other conduct which constitutes dishonest dealing;
             1942          (16) unprofessional conduct as defined by statute or rule;
             1943          (17) having one of the following suspended, revoked, surrendered, or cancelled on the
             1944      basis of misconduct in a professional capacity that relates to character, honesty, integrity, or
             1945      truthfulness:
             1946          (a) a real estate license, registration, or certificate issued by another jurisdiction; or
             1947          (b) another license, registration, or certificate to engage in an occupation or profession
             1948      issued by this state or another jurisdiction;
             1949          (18) failing to respond to a request by the division in an investigation authorized under
             1950      this chapter, including:
             1951          (a) failing to respond to a subpoena;
             1952          (b) withholding evidence; or
             1953          (c) failing to produce documents or records;
             1954          (19) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             1955          (a) providing a title insurance product or service without the approval required by
             1956      Section 31A-2-405 ; or
             1957          (b) knowingly providing false or misleading information in the statement required by
             1958      Subsection 31A-2-405 (2);
             1959          (20) violating an independent contractor agreement between a principal broker and a
             1960      sales agent or associate broker as evidenced by a final judgment of a court; or
             1961          [(21) (a) engaging in a foreclosure rescue if not licensed under this chapter;]


             1962          [(b)] (21) (a) engaging in an act of loan modification assistance that requires licensure
             1963      as a mortgage officer under Chapter 2c, Utah Residential Mortgage Practices and Licensing
             1964      Act, without being licensed under that chapter;
             1965          [(c)] (b) engaging in an act of foreclosure rescue without entering into a written
             1966      agreement specifying what one or more acts of foreclosure rescue will be completed;
             1967          [(d) requesting or requiring a person to pay a fee for a foreclosure rescue service before
             1968      obtaining a written agreement:]
             1969          [(i) between the person and the person's lender or servicer; and]
             1970          [(ii) by which title to the residential real estate at risk of foreclosure will be
             1971      transferred;]
             1972          [(e)] (c) inducing a person who is at risk of foreclosure to hire the licensee to engage in
             1973      an act of foreclosure rescue by:
             1974          (i) suggesting to the person that the licensee has a special relationship with the person's
             1975      lender or loan servicer; or
             1976          (ii) falsely representing or advertising that the licensee is acting on behalf of:
             1977          (A) a government agency;
             1978          (B) the person's lender or loan servicer; or
             1979          (C) a nonprofit or charitable institution; or
             1980          [(f)] (d) recommending or participating in a foreclosure rescue that requires a person
             1981      to:
             1982          (i) transfer title to real estate to the licensee or to a third-party with whom the licensee
             1983      has a business relationship or financial interest;
             1984          (ii) make a mortgage payment to a person other than the person's loan servicer; or
             1985          (iii) refrain from contacting the person's:
             1986          (A) lender;
             1987          (B) loan servicer;
             1988          (C) attorney;
             1989          (D) credit counselor; or


             1990          (E) housing counselor[; or].
             1991          [(22) for an agreement for foreclosure rescue entered into on or after May 11, 2010,
             1992      engaging in an act of foreclosure rescue without offering in writing to the person entering into
             1993      the agreement for foreclosure rescue a right to cancel the agreement within three business days
             1994      after the day on which the person enters the agreement.]
             1995          Section 30. Section 61-2g-102 is amended to read:
             1996           61-2g-102. Definitions.
             1997          (1) As used in this chapter:
             1998          (a) (i) "Appraisal" means an [unbiased] analysis, opinion, or conclusion relating to the
             1999      nature, quality, value, or utility of a specified interest in, or aspect of, identified real estate or
             2000      identified real property.
             2001          (ii) An appraisal is classified by the nature of the assignment as a valuation appraisal,
             2002      an analysis assignment, or a review assignment in accordance with the following definitions:
             2003          (A) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that
             2004      relates to the nature, quality, or utility of identified real estate or identified real property.
             2005          (B) "Review assignment" means an unbiased analysis, opinion, or conclusion that
             2006      forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis
             2007      assignment.
             2008          (C) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
             2009      estimates the value of an identified parcel of real estate or identified real property at a particular
             2010      point in time.
             2011          (b) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as
             2012      an Illinois not-for-profit corporation on November 30, 1987.
             2013          (c) (i) "Appraisal report" means a communication, written or oral, of an appraisal.
             2014          (ii) An appraisal report is classified by the nature of the assignment as a valuation
             2015      report, analysis report, or review report in accordance with the definitions provided in
             2016      Subsection (1)(a)(ii).
             2017          (iii) The testimony of a person relating to the person's analyses, conclusions, or


             2018      opinions concerning identified real estate or identified real property is considered to be an oral
             2019      appraisal report.
             2020          (d) "Appraisal Qualification Board" means the Appraisal Qualification Board of the
             2021      Appraisal Foundation.
             2022          (e) "Board" means the Real Estate Appraiser Licensing and Certification Board that is
             2023      established in Section 61-2g-204 .
             2024          (f) "Certified appraisal report" means a written or oral appraisal report that is certified
             2025      by a state-certified general appraiser or state-certified residential appraiser.
             2026          (g) "Concurrence" means that the entities that are given a concurring role jointly agree
             2027      to an action.
             2028          (h) (i) (A) "Consultation service" means an engagement to provide a real estate
             2029      valuation service analysis, opinion, conclusion, or other service that does not fall within the
             2030      definition of appraisal.
             2031          (B) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
             2032      review assignment.
             2033          (ii) Regardless of the intention of the client or employer, if a person prepares an
             2034      unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
             2035      be an appraisal and not a consultation service.
             2036          (i) "Contingent fee" means a fee or other form of compensation, payment of which is
             2037      dependent on or conditioned by:
             2038          (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
             2039      performing the analysis, opinion, or conclusion; or
             2040          (ii) achieving a result specified by the person requesting the analysis, opinion, or
             2041      conclusion.
             2042          (j) "Division" means the Division of Real Estate of the Department of Commerce.
             2043          (k) "Federally related transaction" means a real estate related transaction that is
             2044      required by federal law or by federal regulation to be supported by an appraisal prepared by:
             2045          (i) a state-licensed appraiser; or


             2046          (ii) a state-certified appraiser.
             2047          (l) "Real estate" means an identified parcel or tract of land including improvements if
             2048      any.
             2049          (m) "Real estate appraisal activity" means the act or process of making an appraisal of
             2050      real estate or real property and preparing an appraisal report.
             2051          (n) "Real estate related transaction" means:
             2052          (i) the sale, lease, purchase, investment in, or exchange of real property or an interest in
             2053      real property, or the financing of such a transaction;
             2054          (ii) the refinancing of real property or an interest in real property; or
             2055          (iii) the use of real property or an interest in real property as security for a loan or
             2056      investment, including mortgage-backed securities.
             2057          (o) "Real property" means one or more defined interests, benefits, or rights inherent in
             2058      the ownership of real estate.
             2059          (p) "State-certified general appraiser" means a person who holds a current, valid
             2060      certification as a state-certified general appraiser issued under this chapter.
             2061          (q) "State-certified residential appraiser" means a person who holds a current, valid
             2062      certification as a state-certified residential real estate appraiser issued under this chapter.
             2063          (r) "State-licensed appraiser" means a person who holds a current, valid license as a
             2064      state-licensed appraiser issued under this chapter.
             2065          (s) "Trainee" means an individual who:
             2066          (i) does not hold an appraiser license or appraiser certification issued under this
             2067      chapter;
             2068          (ii) works under the direct supervision of a state-certified appraiser to earn experience
             2069      for licensure; and
             2070          (iii) is registered as a trainee under this chapter.
             2071          (t) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
             2072      conclusion relating to the nature, quality, value, or utility of identified real estate or identified
             2073      real property that is prepared by a person who is employed or retained to act, or would be


             2074      perceived by third parties or the public as acting, as a disinterested third-party in rendering the
             2075      analysis, opinion, or conclusion.
             2076          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             2077      meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
             2078      Utah Administrative Rulemaking Act.
             2079          (b) If a term not defined in this section is not defined by rule, the term shall have the
             2080      meaning commonly accepted in the business community.
             2081          Section 31. Section 61-2g-103 (Superseded 07/01/12) is amended to read:
             2082           61-2g-103 (Superseded 07/01/12). Other law unaffected.
             2083          This chapter may not be considered to prohibit a person [approved,] licensed, certified,
             2084      or registered under this chapter from engaging in the practice of real estate appraising as a
             2085      professional corporation or a limited liability company in accordance with:
             2086          (1) Title 16, Chapter 11, Professional Corporation Act; or
             2087          (2) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act.
             2088          Section 32. Section 61-2g-103 (Effective 07/01/12) is amended to read:
             2089           61-2g-103 (Effective 07/01/12). Other law unaffected.
             2090          This chapter may not be considered to prohibit a person [approved,] licensed, certified,
             2091      or registered under this chapter from engaging in the practice of real estate appraising as a
             2092      professional corporation or a limited liability company in accordance with:
             2093          (1) Title 16, Chapter 11, Professional Corporation Act; or
             2094          (2) Title 48, Chapter 3, Utah Revised Uniform Limited Liability Company Act.
             2095          Section 33. Section 61-2g-201 is amended to read:
             2096           61-2g-201. Duties and powers of division in general.
             2097          (1) The division shall administer and enforce this chapter.
             2098          (2) The division has the following powers and duties:
             2099          (a) The division shall:
             2100          (i) receive an application for licensing, certification, or registration;
             2101          (ii) establish appropriate administrative procedures for the processing of an application


             2102      for licensure, certification, or registration;
             2103          (iii) issue a license or certification to a qualified applicant pursuant to this chapter; and
             2104          (iv) register an individual who applies and qualifies for registration as a trainee under
             2105      this chapter.
             2106          (b) The division shall hold public hearings under the direction of the board.
             2107          (c) The division may:
             2108          (i) solicit bids and enter into contracts with one or more educational testing services or
             2109      organizations for the preparation of a bank of questions and answers; and
             2110          (ii) administer or contract for the administration of licensing and certification
             2111      examinations as may be required to carry out the division's responsibilities under this chapter.
             2112          (d) The division shall provide administrative assistance to the board by providing to the
             2113      board the facilities, equipment, supplies, and personnel that are required to enable the board to
             2114      carry out the board's responsibilities under this chapter.
             2115          (e) The division shall assist the board in improving the quality of the continuing
             2116      education available to a person licensed, certified, or registered under this chapter.
             2117          (f) The division shall assist the board with respect to the proper interpretation or
             2118      explanation of the Uniform Standards of Professional Appraisal Practice as required by Section
             2119      61-2g-403 when an interpretation or explanation becomes necessary in the enforcement of this
             2120      chapter.
             2121          (g) The division may:
             2122          (i) promote research and conduct studies relating to the profession of real estate
             2123      appraising; and
             2124          (ii) sponsor real estate appraisal educational activities.
             2125          (h) The division shall adopt, with the concurrence of the board, rules for the
             2126      administration of this chapter pursuant to Title 63G, Chapter 3, Utah Administrative
             2127      Rulemaking Act, that are not inconsistent with this chapter or the constitution and laws of this
             2128      state or of the United States.
             2129          (i) The division shall employ an appropriate staff to investigate allegations that a


             2130      person required to be licensed, certified, or registered under this chapter fails to comply with
             2131      this chapter.
             2132          (j) The division may employ other professional, clerical, and technical staff as may be
             2133      necessary to properly administer the work of the division under this chapter.
             2134          (k) (i) Upon request, the division shall make available, either directly or through a
             2135      third-party, a list of the names and addresses of the persons licensed, registered, or certified by
             2136      the division under this chapter.
             2137          (ii) A person who requests a list under this Subsection (2)(k) shall pay the costs
             2138      incurred by the division to make the list available.
             2139          (3) (a) If the conditions of Subsection (3)(b) are met, the division is immune from any
             2140      civil action or criminal prosecution for initiating or assisting in a lawful investigation of an act
             2141      of, or participating in a disciplinary proceeding concerning[: (i)] a person required to be
             2142      licensed, certified, or registered pursuant to this chapter[; or (ii) a person approved as an expert
             2143      witness pursuant to this chapter].
             2144          (b) This Subsection (3) applies if the division takes the action:
             2145          (i) without malicious intent; and
             2146          (ii) in the reasonable belief that the action is taken pursuant to the powers and duties
             2147      vested in the division under this chapter.
             2148          Section 34. Section 61-2g-301 is amended to read:
             2149           61-2g-301. License or certification required.
             2150          (1) Except as provided in Subsection (2) [and in Section 61-2g-303 ], it is unlawful for
             2151      a person to prepare, for valuable consideration, an appraisal, an appraisal report, a certified
             2152      appraisal report, or perform a consultation service relating to real estate or real property in this
             2153      state without first being licensed or certified in accordance with this chapter.
             2154          (2) This section does not apply to:
             2155          (a) a principal broker, associate broker, or sales agent as defined by Section 61-2f-102
             2156      licensed by this state who, in the ordinary course of the broker's or sales agent's business, gives
             2157      an opinion:


             2158          (i) regarding the value of real estate;
             2159          (ii) to a potential seller or third-party recommending a listing price of real estate; or
             2160          (iii) to a potential buyer or third-party recommending a purchase price of real estate;
             2161          (b) an employee of a company who states an opinion of value or prepares a report
             2162      containing value conclusions relating to real estate or real property solely for the company's
             2163      use;
             2164          (c) an official or employee of a government agency while acting solely within the scope
             2165      of the official's or employee's duties, unless otherwise required by Utah law;
             2166          (d) an auditor or accountant who states an opinion of value or prepares a report
             2167      containing value conclusions relating to real estate or real property while performing an audit;
             2168          (e) an individual, except an individual who is required to be licensed or certified under
             2169      this chapter, who states an opinion about the value of property in which the person has an
             2170      ownership interest;
             2171          (f) an individual who states an opinion of value if no consideration is paid or agreed to
             2172      be paid for the opinion and no other party is reasonably expected to rely on the individual's
             2173      appraisal expertise;
             2174          (g) an individual, such as a researcher or a secretary, who does not render significant
             2175      professional assistance, as defined by the board, in arriving at a real estate appraisal analysis,
             2176      opinion, or conclusion; or
             2177          (h) an attorney authorized to practice law in [this] any state who, in the course of the
             2178      attorney's practice or tax appeal services, uses an appraisal report governed by this chapter or
             2179      who states an opinion of the value of real estate.
             2180          (3) An opinion of value or report containing value conclusions exempt under
             2181      Subsection (2) may not be referred to as an appraisal.
             2182          (4) Except as provided in Subsection (2) [and Section 61-2g-303 ], to prepare or cause
             2183      to be prepared in this state an appraisal, an appraisal report, or a certified appraisal report an
             2184      individual shall:
             2185          (a) apply in writing for licensure or certification as provided in this chapter in the form


             2186      as the division may prescribe; and
             2187          (b) become licensed or certified under this chapter.
             2188          Section 35. Section 61-2g-304 is amended to read:
             2189           61-2g-304. Application for licensure, certification, or registration.
             2190          (1) An application for the following shall be sent to the division on a form approved by
             2191      the division:
             2192          (a) original certification, licensure, or registration; and
             2193          [(b) approval as an expert witness; and]
             2194          [(c)] (b) renewal of certification, licensure, or registration.
             2195          (2) The payment of the appropriate fee, as established by the division, with the
             2196      concurrence of the board, in accordance with Section 63J-1-504 , must accompany an
             2197      application for:
             2198          [(a) approval as an expert witness;]
             2199          [(b)] (a) original certification, licensure, or registration; and
             2200          [(c)] (b) renewal of certification, licensure, or registration.
             2201          (3) At the time of filing an application described in Subsection (1), an applicant shall:
             2202          (a) sign a pledge to comply with the Uniform Standards of Professional Appraisal
             2203      Practice and the ethical rules to be observed by an appraiser that are established under Section
             2204      61-2g-403 for:
             2205          (i) a certified or licensed appraiser; or
             2206          (ii) a trainee; [or] and
             2207          [(iii) an expert witness approved under this chapter; and]
             2208          (b) certify that the applicant understands the types of misconduct, as set forth in this
             2209      chapter, for which a disciplinary proceeding may be initiated against a person certified,
             2210      licensed, or registered under this chapter.
             2211          Section 36. Section 61-2g-306 is amended to read:
             2212           61-2g-306. Renewal of license, certification, or registration.
             2213          (1) To renew a license, certification, or registration, before the license, certification, or


             2214      registration expires, the holder of the license, certification, or registration shall submit to the
             2215      division in compliance with procedures set through the concurrence of the division and the
             2216      board:
             2217          (a) an application for renewal;
             2218          (b) a fee established by the division and the board, in accordance with Section
             2219      63J-1-504 ; and
             2220          (c) evidence in the form prescribed by the division of having completed the continuing
             2221      education requirements for renewal specified in this chapter.
             2222          (2) (a) A license, certification, or registration expires if it is not renewed on or before
             2223      its expiration date.
             2224          (b) For a period of 30 days after the expiration date, a license, certification, or
             2225      registration may be reinstated upon:
             2226          (i) payment of a renewal fee and a late fee determined through the concurrence of the
             2227      division and the board; and
             2228          (ii) satisfying the continuing education requirements specified in Section 61-2g-307 .
             2229          (c) After the 30-day period described in Subsection (2)(b), and until six months after
             2230      the expiration date, a license, certification, or registration may be reinstated by:
             2231          (i) paying a renewal fee and a reinstatement fee determined through the concurrence of
             2232      the division and the board; and
             2233          (ii) satisfying the continuing education requirements specified in Section 61-2g-307 .
             2234          (d) After the six-month period described in Subsection (2)(c), and until one year after
             2235      the expiration date, a license, certification, or registration may be reinstated by:
             2236          (i) paying a renewal fee and a reinstatement fee determined through the concurrence of
             2237      the division and the board in accordance with Section 63J-1-504 ;
             2238          (ii) providing proof acceptable to the division, with the concurrence of the board, of the
             2239      person having satisfied the continuing education requirements of Section 61-2g-307 ; and
             2240          (iii) providing proof acceptable to the division, with the concurrence of the board, of
             2241      the person completing 24 hours of continuing education:


             2242          (A) in addition to the requirements in Section 61-2g-307 ; and
             2243          (B) on a subject determined by the division by rule made in accordance with Title 63G,
             2244      Chapter 3, Utah Administrative Rulemaking Act.
             2245          (e) The division shall relicense, recertify, or reregister a person who does not renew
             2246      that person's license, certification, or registration within one year after the expiration date as
             2247      prescribed for an original application.
             2248          (f) Notwithstanding Subsection (2)(a), the division may extend the term of a license,
             2249      certification, or registration that would expire under Subsection (2)(a) except for the extension
             2250      if:
             2251          (i) (A) the person complies with the requirements of this section to renew the license,
             2252      certification, or registration; and
             2253          (B) the application for renewal remains pending at the time of the extension; or
             2254          (ii) at the time of the extension, there is pending under this chapter a disciplinary
             2255      action.
             2256          (3) A person who is licensed, certified, or registered under this chapter shall notify the
             2257      division of the following by sending the division a signed statement within 10 business days of:
             2258          (a) [(i)] a conviction of [a: (A)], or the entry of a plea in abeyance to:
             2259          (i) a felony; or
             2260          [(B) class A misdemeanor; or]
             2261          [(C) class B misdemeanor;]
             2262          [(ii) the entry of a plea in abeyance to a:]
             2263          [(A) felony;]
             2264          [(B) class A misdemeanor; or]
             2265          [(C) class B misdemeanor; or]
             2266          (ii) a misdemeanor involving financial services or a financial services-related business,
             2267      fraud, a false statement or omission, theft or wrongful taking of property, bribery, perjury,
             2268      forgery, counterfeiting, or extortion;
             2269          [(iii)] (b) the potential resolution of a felony[, class A] or of a misdemeanor[, or class B


             2270      misdemeanor] described in Subsection (3)(a)(ii) by:
             2271          [(A)] (i) a diversion agreement; or
             2272          [(B)] (ii) any other agreement under which a criminal charge is suspended for a period
             2273      of time;
             2274          [(b) filing a personal bankruptcy or business bankruptcy;]
             2275          (c) the suspension, revocation, surrender, cancellation, or denial of a professional
             2276      license, certification, or registration of the person, whether the license, certification, or
             2277      registration is issued by this state or another jurisdiction; or
             2278          (d) the entry of a cease and desist order or a temporary or permanent injunction:
             2279          (i) against the person by a court or administrative agency; and
             2280          (ii) on the basis of:
             2281          (A) conduct or a practice involving an act regulated by this chapter; or
             2282          (B) conduct involving fraud, misrepresentation, or deceit.
             2283          (4) The board, with the concurrence of the division, shall enforce the reporting
             2284      requirement of Subsection (3) pursuant to Section 61-2g-502 .
             2285          Section 37. Section 61-2g-308 is amended to read:
             2286           61-2g-308. Licensing, certification, or registration requirements for nonresidents
             2287      -- Temporary license or certificate -- Revocation.
             2288          (1) An individual applicant for [one of the following] licensure, certification, or
             2289      registration under this chapter who is not a resident of this state shall submit with the
             2290      applicant's application an irrevocable consent that service of process upon the applicant may be
             2291      made by delivery of the process to the director of the division if, in an action against the
             2292      applicant in a court of this state arising out of the applicant's activities governed by this chapter
             2293      in this state, the plaintiff cannot, in the exercise of due diligence, obtain personal service upon
             2294      the applicant[: (a) approval as an expert witness; or (b) licensure, certification, or registration
             2295      under this chapter].
             2296          (2) A nonresident of this state who complies with Subsection (1) may obtain [approval
             2297      as an expert witness,] a license, a certification, or a registration in this state by complying with


             2298      this chapter relating to [approval as an expert witness,] licensure, certification, or registration.
             2299          (3) (a) A nonresident of this state who complies with Subsection (1) may obtain a
             2300      temporary permit for a license or certification to perform a contract relating to the appraisal of
             2301      real estate or real property in this state.
             2302          (b) To qualify for the issuance of a temporary permit for a license or certification, an
             2303      applicant [must] shall:
             2304          [(a)] (i) submit an application on a form approved by the division;
             2305          [(b)] (ii) submit evidence that the applicant is licensed or certified in the state in which
             2306      the applicant primarily conducts business;
             2307          [(c)] (iii) certify that no formal charges alleging violation of state appraisal licensing or
             2308      certification laws have been filed against the applicant by the applicant's state of domicile; and
             2309          [(d)] (iv) pay an application fee in an amount established by the division with the
             2310      concurrence of the board.
             2311          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2312      division, with the concurrence of the board, shall make rules establishing:
             2313          (a) the duration of a temporary permit; and
             2314          (b) procedures for renewal of a temporary permit.
             2315          (5) A temporary permit issued under this section shall be immediately and
             2316      automatically revoked if the appraiser's license or certification is suspended or revoked in the
             2317      appraiser's state of domicile.
             2318          (6) A person whose temporary permit for a license or certification is revoked under
             2319      Subsection (5) is entitled to a postrevocation hearing to challenge the revocation. The hearing
             2320      shall be conducted in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             2321          Section 38. Section 61-2g-312 is amended to read:
             2322           61-2g-312. State-certified appraisers -- Authority.
             2323          (1) A state-certified residential appraiser is authorized to appraise the types of real
             2324      estate which a state-licensed appraiser is authorized to appraise.
             2325          (2) A state-certified residential appraiser is also authorized to appraise 1-4 unit


             2326      residential real estate without regard to transaction value or complexity.
             2327          (3) A state-certified residential appraiser is not authorized to appraise subdivisions for
             2328      which a development analysis/appraisal is necessary.
             2329          (4) A state-certified general appraiser is authorized to appraise [the] all types of real
             2330      estate and real property.
             2331          Section 39. Section 61-2g-315 is amended to read:
             2332           61-2g-315. Licensing, certification, and registration documents -- Assigned
             2333      number to be used on contracts -- Surrender of documents upon suspension.
             2334          (1) The division shall issue to a person [approved as an expert witness,] licensed,
             2335      certified, or registered under this chapter a document:
             2336          (a) stating that the person is [approved as an expert witness,] licensed, certified, or
             2337      registered under this chapter; and
             2338          (b) specifying the expiration date of a license or certification.
             2339          (2) (a) [An approval as an expert witness, a] A license, a certification, or a registration
             2340      document issued under this chapter shall bear [an approval,] a license, certification, or
             2341      registration number assigned by the division.
             2342          (b) An assigned number shall be used in a statement of qualification, a contract, or
             2343      another instrument used by the holder of the [approval,] license, certificate, or registration
             2344      when reference is made to the holder's status as being [approved,] licensed, certified, or
             2345      registered under this chapter.
             2346          (3) (a) [An approval,] A license, certification, or registration document is the property
             2347      of the state.
             2348          (b) Upon a suspension or revocation of a license, certification, or registration under this
             2349      chapter, the individual holding the applicable document shall immediately return the document
             2350      to the division.
             2351          Section 40. Section 61-2g-402 is amended to read:
             2352           61-2g-402. Principal place of business -- Display of documents -- Notify of
             2353      changes -- Nonresidents.


             2354          (1) A person licensed or certified under this chapter shall:
             2355          (a) designate and maintain a principal place of business; and
             2356          (b) conspicuously display the person's license or certification.
             2357          (2) [(a)] Upon a change of a person's principal business location or home address, a
             2358      person licensed or certified under this chapter shall promptly send the division a signed
             2359      statement notifying the division of the change within 10 business days of the change.
             2360          [(b) Upon a change of an expert witness's address listed on the expert witness's
             2361      application for approval, the expert witness shall send the division a signed statement notifying
             2362      the division of the change within 10 business days of the change.]
             2363          (3) A nonresident licensee or certificate holder[, or a nonresident approved as an expert
             2364      witness] is not required to maintain a place of business in this state if the nonresident maintains
             2365      an active place of business in the nonresident's state of domicile.
             2366          Section 41. Section 61-2g-403 is amended to read:
             2367           61-2g-403. Professional conduct -- Uniform standards.
             2368          (1) (a) A person licensed, certified, or registered[, or approved as an expert witness]
             2369      under this chapter shall comply with:
             2370          (i) generally accepted standards of professional appraisal practice; and
             2371          (ii) generally accepted ethical rules to be observed by a real estate appraiser.
             2372          (b) Subject to the other provisions of this Subsection (1), generally accepted standards
             2373      of professional appraisal practice are evidenced by the Uniform Standards of Professional
             2374      Appraisal Practice promulgated by the Appraisal Foundation.
             2375          (c) After a public hearing held in accordance with Title 63G, Chapter 3, Utah
             2376      Administrative Rulemaking Act, the board, with the concurrence of the division:
             2377          (i) shall adopt and may make modifications of or additions to the Uniform Standards of
             2378      Professional Appraisal Practice as the board considers appropriate to comply with the Financial
             2379      Institutions Reform, Recovery, and Enforcement Act of 1989; or
             2380          (ii) may by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2381      Rulemaking Act, exempt a person licensed, certified, or registered[, or approved as an expert


             2382      witness] from complying with a provision of the Uniform Standards of Professional Appraisal
             2383      Practice for an activity that the person engages in on behalf of a governmental entity.
             2384          (d) When an individual is a state-licensed appraiser or state-certified appraiser and also
             2385      holds a license issued under Chapter 2f, Real Estate Licensing and Practices Act, the individual
             2386      may provide an opinion of price of real estate without complying with the Uniform Standards
             2387      of Professional Appraisal Practice if the individual provides the opinion of price as a licensee
             2388      under Chapter 2f, Real Estate Licensing and Practices Act.
             2389          (e) A state-licensed or state-certified appraiser who also holds a license issued under
             2390      Chapter 2c, Utah Residential Mortgage Practices and Licensing Act, or Chapter 2f, Real Estate
             2391      Licensing and Practices Act, may not act under more than one license in a single transaction.
             2392          (2) When instructed by the board, the division shall schedule a public hearing pursuant
             2393      to Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the purpose of deciding
             2394      whether or not the board should require a modified or supplemental standard or the ethical rule
             2395      to be observed by a person licensed, certified, or registered[, or approved as an expert witness]
             2396      under this chapter if the Appraisal Standards Board of the Appraisal Foundation:
             2397          (a) (i) modifies the Uniform Standards of Professional Appraisal Practice;
             2398          (ii) issues a supplemental appraisal standard which it considers appropriate for:
             2399          (A) a residential real estate appraiser; or
             2400          (B) a general real estate appraiser; or
             2401          (iii) issues an ethical rule to be observed by a real estate appraiser; and
             2402          (b) requests the board to consider the adoption of the modified or supplemental
             2403      standard or ethical rule.
             2404          (3) If, after the notice and public hearing described in Subsection (2), the board finds
             2405      that a modified or supplemental standard or the ethical rule issued by the Appraisal Standards
             2406      Board of the Appraisal Foundation is appropriate for a person licensed, certified, or registered[,
             2407      or approved as an expert witness] under this chapter, the board shall recommend a rule
             2408      requiring a person licensed, certified, or registered[, or approved as an expert witness] under
             2409      this chapter to observe the modified or supplemental standard or the ethical rule.


             2410          Section 42. Section 61-2g-502 is amended to read:
             2411           61-2g-502. Disciplinary action -- Grounds.
             2412          (1) (a) The board may order disciplinary action, with the concurrence of the division,
             2413      against a person:
             2414          (i) registered, licensed, or certified under this chapter; or
             2415          (ii) required to be registered, licensed, or certified under this chapter.
             2416          (b) On the basis of a ground listed in Subsection (2) for disciplinary action, board
             2417      action may include:
             2418          (i) revoking, suspending, or placing a person's registration, license, or certification on
             2419      probation;
             2420          (ii) denying a person's original registration, license, or certification;
             2421          (iii) denying a person's renewal license, certification, or registration;
             2422          (iv) in the case of denial or revocation of a registration, license, or certification, setting
             2423      a waiting period for an applicant to apply for a registration, license, or certification under this
             2424      chapter;
             2425          (v) ordering remedial education;
             2426          (vi) imposing a civil penalty upon a person not to exceed the greater of:
             2427          (A) $5,000 for each violation; or
             2428          (B) the amount of any gain or economic benefit from a violation;
             2429          (vii) issuing a cease and desist order;
             2430          (viii) modifying an action described in Subsections (1)(b)(i) through (vii) if the board,
             2431      with the concurrence of the division, finds that the person complies with court ordered
             2432      restitution; or
             2433          (ix) doing any combination of Subsections (1)(b)(i) through (viii).
             2434          (c) (i) If the board or division issues an order that orders a fine or educational
             2435      requirements as part of the disciplinary action against a person, including a stipulation and
             2436      order, the board or division shall state in the order the deadline by which the person shall
             2437      comply with the fine or educational requirements.


             2438          (ii) If a person fails to comply with a stated deadline:
             2439          (A) the person's license, certificate, or registration is automatically suspended:
             2440          (I) beginning on the day specified in the order as the deadline for compliance; and
             2441          (II) ending the day on which the person complies in full with the order; and
             2442          (B) if the person fails to pay a fine required by an order, the division may begin a
             2443      collection process:
             2444          (I) established by the division by rule made in accordance with Title 63G, Chapter 3,
             2445      Utah Administrative Rulemaking Act; and
             2446          (II) subject to Title 63A, Chapter [8] 3, Part 5, Office of State Debt Collection.
             2447          (2) The following are grounds for disciplinary action under this section:
             2448          (a) procuring or attempting to procure a registration, license, or certification under this
             2449      chapter:
             2450          (i) by fraud; or
             2451          (ii) by making a false statement, submitting false information, or making a material
             2452      misrepresentation in an application filed with the division;
             2453          (b) paying money or attempting to pay money other than a fee provided for by this
             2454      chapter to a member or employee of the division to procure a registration, license, or
             2455      certification under this chapter;
             2456          (c) an act or omission in the practice of real estate appraising that constitutes
             2457      dishonesty, fraud, or misrepresentation;
             2458          (d) entry of a judgment against a registrant, licensee, or certificate holder on grounds of
             2459      fraud, misrepresentation, or deceit in the making of an appraisal of real estate;
             2460          (e) a guilty plea to a criminal offense involving moral turpitude that is held in
             2461      abeyance, or a conviction, including a conviction based upon a plea of guilty or nolo
             2462      contendere, of a criminal offense involving moral turpitude;
             2463          (f) engaging in the business of real estate appraising under an assumed or fictitious
             2464      name not properly registered in this state;
             2465          (g) paying a finder's fee or a referral fee to a person not licensed or certified under this


             2466      chapter in connection with an appraisal of real estate or real property in this state;
             2467          (h) making a false or misleading statement in:
             2468          (i) that portion of a written appraisal report that deals with professional qualifications;
             2469      or
             2470          (ii) testimony concerning professional qualifications;
             2471          (i) violating or disregarding:
             2472          (i) this chapter;
             2473          (ii) an order of:
             2474          (A) the board; or
             2475          (B) the division, in a case when the board delegates to the division the authority to
             2476      make a decision on behalf of the board; or
             2477          (iii) a rule issued under this chapter;
             2478          (j) violating the confidential nature of governmental records to which a person
             2479      registered, licensed, or certified[, or approved as an expert] under this chapter gained access
             2480      through employment or engagement as an appraiser by a governmental agency;
             2481          (k) accepting a contingent fee for performing an appraisal if in fact the fee is or was
             2482      contingent upon:
             2483          (i) the appraiser reporting a predetermined analysis, opinion, or conclusion;
             2484          (ii) the analysis, opinion, conclusion, or valuation reached; or
             2485          (iii) the consequences resulting from the appraisal assignment;
             2486          (l) unprofessional conduct as defined by statute or rule;
             2487          (m) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             2488          (i) providing a title insurance product or service without the approval required by
             2489      Section 31A-2-405 ; or
             2490          (ii) knowingly providing false or misleading information in the statement required by
             2491      Subsection 31A-2-405 (2); or
             2492          (n) other conduct that constitutes dishonest dealing.
             2493          Section 43. Section 61-2g-503 is amended to read:


             2494           61-2g-503. Reinstatement of license, certification, and registration.
             2495          (1) An individual whose license, certification, or registration[, or approval] is revoked
             2496      under this chapter:
             2497          (a) may not apply for renewal or reinstatement of that license, certification, or
             2498      registration[, or approval]; and
             2499          (b) may apply for licensure, certification, or registration[, or approval] as prescribed for
             2500      an original license, certification, or registration[, or approval] subject to the limitations in
             2501      Subsection (2).
             2502          (2) An applicant for licensure, certification, or registration[, or approval as an expert
             2503      witness] under Subsection (1) is not entitled to credit for experience gained before the date of
             2504      revocation in determining whether the applicant meets the experience requirement for
             2505      licensure, certification, or registration[, or approval].
             2506          Section 44. Repealer.
             2507          This bill repeals:
             2508          Section 61-2g-303, Approval of an expert.
             2509          Section 45. Effective dates.
             2510          (1) Except as provided in Subsection (2), this bill takes effect May 8, 2012.
             2511          (2) Section 61-2f-401 (Effective 07/01/12) and Section 61-2g-103 (Effective 07/01/12)
             2512      take effect July 1, 2012.


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