H.B. 332 Enrolled

             1     

REAL ESTATE AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gage Froerer

             5     
Senate Sponsor: J. Stuart Adams

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions of Title 61, Securities Division - Real Estate Division.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    modifies the scope of the business of residential mortgage loans;
             14          .    establishes a procedure for the voluntary surrender of a license issued under Title
             15      61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act; Title 61,
             16      Chapter 2f, Real Estate Licensing and Practices Act; and Title 61, Chapter 2g, Real
             17      Estate Appraiser Licensing and Certification Act;
             18          .    requires certain state agencies to obtain the concurrence of the Real Estate
             19      Commission before the agency makes a rule that changes the rights, duties, or
             20      obligations of buyers, sellers, or persons licensed under Title 61, Chapter 2f, Real
             21      Estate Licensing and Practices Act, in relation to a real estate transaction between
             22      private parties;
             23          .    clarifies the procedure for renewal of an expired license under Title 61, Chapter 2f,
             24      Real Estate Licensing and Practices Act;
             25          .    provides that the division may send a license issued under Title 61, Chapter 2f, Real
             26      Estate Licensing and Practices Act, by mail or by email;
             27          .    clarifies the circumstances under which a buyer's principal broker may directly
             28      contact a seller who is represented by a principal broker;
             29          .    provides a statute of limitations for certain disciplinary actions;


             30          .    clarifies the effect of the expiration, revocation, or suspension of a license issued
             31      under Title 61, Chapter 2f, Real Estate Licensing and Practices Act;
             32          .    provides that the education and experience requirements for a licensee under Title
             33      61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act, must meet or
             34      exceed the requirements established by the Appraisal Qualification Board;
             35          .    provides that the Real Estate Appraiser Licensing and Certification Board may
             36      delegate certain duties to the Division of Real Estate;
             37          .    establishes procedures to request the review of certain decisions relating to
             38      licensure, certification, and registration under Title 61, Chapter 2g, Real Estate
             39      Appraiser Licensing and Certification Act;
             40          .    broadens the applicability of the background check requirements described in Title
             41      61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act;
             42          .    clarifies the standards for reciprocal licensure under Title 61, Chapter 2g, Real
             43      Estate Appraiser Licensing and Certification Act; and
             44          .    makes technical and conforming changes.
             45      Money Appropriated in this Bill:
             46          None
             47      Other Special Clauses:
             48          None
             49      Utah Code Sections Affected:
             50      AMENDS:
             51           61-2c-102 , as last amended by Laws of Utah 2012, Chapter 166
             52           61-2c-402.1 , as last amended by Laws of Utah 2009, Chapter 372
             53           61-2f-103 , as last amended by Laws of Utah 2010, Chapter 286 and renumbered and
             54      amended by Laws of Utah 2010, Chapter 379
             55           61-2f-204 , as last amended by Laws of Utah 2013, Chapter 292
             56           61-2f-205 , as renumbered and amended by Laws of Utah 2010, Chapter 379
             57           61-2f-308 , as renumbered and amended by Laws of Utah 2010, Chapter 379


             58           61-2f-402 , as renumbered and amended by Laws of Utah 2010, Chapter 379
             59           61-2f-406 , as renumbered and amended by Laws of Utah 2010, Chapter 379
             60           61-2g-102 , as last amended by Laws of Utah 2012, Chapter 166
             61           61-2g-205 , as renumbered and amended by Laws of Utah 2011, Chapter 289
             62           61-2g-302 , as enacted by Laws of Utah 2011, Chapter 289
             63           61-2g-310 , as renumbered and amended by Laws of Utah 2011, Chapter 289
             64           61-2g-311 , as renumbered and amended by Laws of Utah 2011, Chapter 289
             65           61-2g-312 , as last amended by Laws of Utah 2012, Chapter 166
             66           61-2g-313 , as renumbered and amended by Laws of Utah 2011, Chapter 289
             67           61-2g-314 , as renumbered and amended by Laws of Utah 2011, Chapter 289
             68           61-2g-501 , as renumbered and amended by Laws of Utah 2011, Chapter 289
             69      ENACTS:
             70           61-2c-210 , Utah Code Annotated 1953
             71           61-2f-208 , Utah Code Annotated 1953
             72           61-2f-410 , Utah Code Annotated 1953
             73           61-2g-304.5 , Utah Code Annotated 1953
             74           61-2g-316 , Utah Code Annotated 1953
             75     
             76      Be it enacted by the Legislature of the state of Utah:
             77          Section 1. Section 61-2c-102 is amended to read:
             78           61-2c-102. Definitions.
             79          (1) As used in this chapter:
             80          (a) "Affiliation" means that a mortgage loan originator is associated with a principal
             81      lending manager in accordance with Section 61-2c-209 .
             82          (b) "Applicant" means a person applying for a license under this chapter.
             83          (c) "Approved examination provider" means a person approved by the nationwide
             84      database as an approved test provider.
             85          (d) "Associate lending manager" means an individual who:


             86          (i) qualifies under this chapter as a principal lending manager; and
             87          (ii) works by or on behalf of another principal lending manager in transacting the
             88      business of residential mortgage loans.
             89          (e) "Branch lending manager" means an individual who is:
             90          (i) licensed as a lending manager; and
             91          (ii) designated in the nationwide database by the individual's sponsoring entity as being
             92      responsible to work from a branch office and to supervise the business of residential mortgage
             93      loans that is conducted at the branch office.
             94          (f) "Branch office" means a licensed entity's office:
             95          (i) for the transaction of the business of residential mortgage loans regulated under this
             96      chapter;
             97          (ii) other than the main office of the licensed entity; and
             98          (iii) that operates under:
             99          (A) the same business name as the licensed entity; or
             100          (B) another trade name that is registered with the division under the entity license.
             101          (g) "Business day" means a day other than:
             102          (i) a Saturday;
             103          (ii) a Sunday; or
             104          (iii) a federal or state holiday.
             105          (h) (i) "Business of residential mortgage loans" means for compensation or in the
             106      expectation of compensation to:
             107          (A) engage in an act that makes an individual a mortgage loan originator;
             108          (B) make or originate a residential mortgage loan;
             109          (C) directly or indirectly solicit a residential mortgage loan for another;
             110          (D) unless excluded under Subsection (1)(h)(ii), render services related to the
             111      origination of a residential mortgage loan including:
             112          (I) preparing a loan package;
             113          (II) communicating with the borrower or lender;


             114          (III) advising on a loan term; [or]
             115          (IV) acting as a loan processor without being employed by a licensed entity; or
             116          (V) except as provided in Subsection (1)(h)(ii)(B) or (C), acting as a loan underwriter;
             117      or
             118          (E) engage in loan modification assistance.
             119          (ii) "Business of residential mortgage loans" does not include:
             120          (A) if working as an employee under the direction of and subject to the supervision and
             121      instruction of a person licensed under this chapter, the performance of a clerical or support duty
             122      [such as], including:
             123          (I) the receipt, collection, or distribution of information common for the processing or
             124      underwriting of a loan in the mortgage industry other than taking an application;
             125          (II) communicating with a consumer to obtain information necessary for the processing
             126      or underwriting of a residential mortgage loan;
             127          (III) word processing;
             128          (IV) sending correspondence;
             129          (V) assembling files; or
             130          (VI) acting as a loan processor;
             131          (B) acting as a loan underwriter under the direction and control of an employer
             132      licensed under this chapter;
             133          (C) acting as a loan underwriter, as an employee of a depository institution, exclusively
             134      in the capacity of the depository institution's employee;
             135          [(B)] (D) ownership of an entity that engages in the business of residential mortgage
             136      loans if the owner does not personally perform the acts listed in Subsection (1)(h)(i); [or]
             137          [(C)] (E) except if an individual will engage in an activity as a mortgage loan
             138      originator, acting in one or more of the following capacities:
             139          (I) a loan wholesaler;
             140          (II) an account executive for a loan wholesaler;
             141          (III) a loan underwriter;


             142          (IV) a loan closer; or
             143          (V) funding a loan; or
             144          [(D)] (F) if employed by a person who owns or services an existing residential
             145      mortgage loan, the direct negotiation with the borrower for the purpose of loan modification.
             146          (i) "Certified education provider" means a person who is certified under Section
             147      61-2c-204.1 to provide one or more of the following:
             148          (i) Utah-specific prelicensing education; or
             149          (ii) Utah-specific continuing education.
             150          (j) "Closed-end" means a loan:
             151          (i) with a fixed amount borrowed; and
             152          (ii) that does not permit additional borrowing secured by the same collateral.
             153          (k) "Commission" means the Residential Mortgage Regulatory Commission created in
             154      Section 61-2c-104 .
             155          (l) "Compensation" means anything of economic value that is paid, loaned, granted,
             156      given, donated, or transferred to an individual or entity for or in consideration of:
             157          (i) services;
             158          (ii) personal or real property; or
             159          (iii) another thing of value.
             160          (m) "Concurrence" means that entities given a concurring role must jointly agree for
             161      the action to be taken.
             162          (n) "Continuing education" means education taken by an individual licensed under this
             163      chapter in order to meet the education requirements imposed by Sections 61-2c-204.1 and
             164      61-2c-205 to renew a license under this chapter.
             165          (o) "Control," as used in Subsection 61-2c-105 (2)(f), means the power to directly or
             166      indirectly:
             167          (i) direct or exercise a controlling interest over:
             168          (A) the management or policies of an entity; or
             169          (B) the election of a majority of the directors, officers, managers, or managing partners


             170      of an entity;
             171          (ii) vote 20% or more of a class of voting securities of an entity by an individual; or
             172          (iii) vote more than 5% of a class of voting securities of an entity by another entity.
             173          (p) (i) "Control person" means an individual identified by an entity registered with the
             174      nationwide database as being an individual directing the management or policies of the entity.
             175          (ii) "Control person" may include one of the following who is identified as provided in
             176      Subsection (1)(p)(i):
             177          (A) a manager;
             178          (B) a managing partner;
             179          (C) a director;
             180          (D) an executive officer; or
             181          (E) an individual who performs a function similar to an individual listed in this
             182      Subsection (1)(p)(ii).
             183          (q) "Depository institution" is as defined in Section 7-1-103 .
             184          (r) "Director" means the director of the division.
             185          (s) "Division" means the Division of Real Estate.
             186          (t) "Dwelling" means a residential structure attached to real property that contains one
             187      to four units including any of the following if used as a residence:
             188          (i) a condominium unit;
             189          (ii) a cooperative unit;
             190          (iii) a manufactured home; or
             191          (iv) a house.
             192          (u) "Employee":
             193          (i) means an individual:
             194          (A) whose manner and means of work performance are subject to the right of control
             195      of, or are controlled by, another person; and
             196          (B) whose compensation for federal income tax purposes is reported, or is required to
             197      be reported, on a W-2 form issued by the controlling person; and


             198          (ii) does not include an independent contractor who performs duties other than at the
             199      direction of, and subject to the supervision and instruction of, another person.
             200          (v) "Entity" means:
             201          (i) a corporation;
             202          (ii) a limited liability company;
             203          (iii) a partnership;
             204          (iv) a company;
             205          (v) an association;
             206          (vi) a joint venture;
             207          (vii) a business trust;
             208          (viii) a trust; or
             209          (ix) another organization.
             210          (w) "Executive director" means the executive director of the Department of Commerce.
             211          (x) "Federal licensing requirements" means Secure and Fair Enforcement for Mortgage
             212      Licensing, 12 U.S.C. Sec. 5101 et seq.
             213          (y) "Foreclosure rescue" means, for compensation or with the expectation of receiving
             214      valuable consideration, to:
             215          (i) engage, or offer to engage, in an act that:
             216          (A) the person represents will assist a borrower in preventing a foreclosure; and
             217          (B) relates to a transaction involving the transfer of title to residential real property; or
             218          (ii) as an employee or agent of another person:
             219          (A) solicit, or offer that the other person will engage in an act described in Subsection
             220      (1)(y)(i); or
             221          (B) negotiate terms in relationship to an act described in Subsection (1)(y)(i).
             222          (z) "Inactive status" means a dormant status into which an unexpired license is placed
             223      when the holder of the license is not currently engaging in the business of residential mortgage
             224      loans.
             225          (aa) "Lending manager" means an individual licensed as a lending manager under


             226      Section 61-2c-206 to transact the business of residential mortgage loans.
             227          (bb) "Licensee" means a person licensed with the division under this chapter.
             228          (cc) "Licensing examination" means the examination required by Section 61-2c-204.1
             229      or 61-2c-206 for an individual to obtain a license under this chapter.
             230          (dd) "Loan modification assistance" means, for compensation or with the expectation
             231      of receiving valuable consideration, to:
             232          (i) act, or offer to act, on behalf of a person to:
             233          (A) obtain a loan term of a residential mortgage loan that is different from an existing
             234      loan term including:
             235          (I) an increase or decrease in an interest rate;
             236          (II) a change to the type of interest rate;
             237          (III) an increase or decrease in the principal amount of the residential mortgage loan;
             238          (IV) a change in the number of required period payments;
             239          (V) an addition of collateral;
             240          (VI) a change to, or addition of, a prepayment penalty;
             241          (VII) an addition of a cosigner; or
             242          (VIII) a change in persons obligated under the existing residential mortgage loan; or
             243          (B) substitute a new residential mortgage loan for an existing residential mortgage
             244      loan; or
             245          (ii) as an employee or agent of another person:
             246          (A) solicit, or offer that the other person will engage in an act described in Subsection
             247      (1)(dd)(i); or
             248          (B) negotiate terms in relationship to an act described in Subsection (1)(dd)(i).
             249          (ee) (i) Except as provided in Subsection (1)(ee)(ii), "mortgage loan originator" means
             250      an individual who for compensation or in expectation of compensation:
             251          (A) (I) takes a residential mortgage loan application; or
             252          (II) offers or negotiates terms of a residential mortgage loan for the purpose of:
             253          (Aa) a purchase;


             254          (Bb) a refinance;
             255          (Cc) a loan modification assistance; or
             256          (Dd) a foreclosure rescue; and
             257          (B) is licensed as a mortgage loan originator in accordance with this chapter.
             258          (ii) "Mortgage loan originator" does not include a person who:
             259          (A) is described in Subsection (1)(ee)(i), but who performs exclusively administrative
             260      or clerical tasks as described in Subsection (1)(h)(ii)(A);
             261          (B) (I) is licensed under Chapter 2f, Real Estate Licensing and Practices Act;
             262          (II) performs only real estate brokerage activities; and
             263          (III) receives no compensation from:
             264          (Aa) a lender;
             265          (Bb) a lending manager; or
             266          (Cc) an agent of a lender or lending manager; or
             267          (C) is solely involved in extension of credit relating to a timeshare plan, as defined in
             268      11 U.S.C. Sec. 101(53D).
             269          (ff) "Nationwide database" means the Nationwide Mortgage Licensing System and
             270      Registry, authorized under federal licensing requirements.
             271          (gg) "Nontraditional mortgage product" means a mortgage product other than a 30-year
             272      fixed rate mortgage.
             273          (hh) "Person" means an individual or entity.
             274          (ii) "Prelicensing education" means education taken by an individual seeking to be
             275      licensed under this chapter in order to meet the education requirements imposed by Section
             276      61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
             277          (jj) "Principal lending manager" means an individual:
             278          (i) licensed as a lending manager under Section 61-2c-206 ; and
             279          (ii) identified in the nationwide database by the individual's sponsoring entity as the
             280      entity's principal lending manager.
             281          (kk) "Record" means information that is:


             282          (i) prepared, owned, received, or retained by a person; and
             283          (ii) (A) inscribed on a tangible medium; or
             284          (B) (I) stored in an electronic or other medium; and
             285          (II) in a perceivable and reproducible form.
             286          (ll) "Referral fee":
             287          (i) means any fee, kickback, or thing of value tendered for a referral of business or a
             288      service incident to or part of a residential mortgage loan transaction; and
             289          (ii) does not mean a payment made:
             290          (A) by a licensed entity to an individual employed by the entity;
             291          (B) under a contractual incentive program; and
             292          (C) according to rules made by the division in accordance with Title 63G, Chapter 3,
             293      Utah Administrative Rulemaking Act.
             294          (mm) "Residential mortgage loan" means an extension of credit, if:
             295          (i) the loan or extension of credit is secured by a:
             296          (A) mortgage;
             297          (B) deed of trust; or
             298          (C) consensual security interest;
             299          (ii) the mortgage, deed of trust, or consensual security interest described in Subsection
             300      (1)(mm)(i):
             301          (A) is on a dwelling located in the state; and
             302          (B) is created with the consent of the owner of the residential real property; and
             303          (iii) solely for the purposes of defining "mortgage loan originator," the extension of
             304      credit is primarily for personal, family, or household use.
             305          (nn) "Sponsorship" means an association in accordance with Section 61-2c-209
             306      between an individual licensed under this chapter and an entity licensed under this chapter.
             307          (oo) "State" means:
             308          (i) a state, territory, or possession of the United States;
             309          (ii) the District of Columbia; or


             310          (iii) the Commonwealth of Puerto Rico.
             311          (pp) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
             312          (qq) "Utah-specific" means an educational or examination requirement under this
             313      chapter that relates specifically to Utah.
             314          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             315      meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
             316      Utah Administrative Rulemaking Act.
             317          (b) If a term not defined in this section is not defined by rule, the term shall have the
             318      meaning commonly accepted in the business community.
             319          Section 2. Section 61-2c-210 is enacted to read:
             320          61-2c-210. Surrender of license.
             321          (1) The division may, by written agreement, accept the voluntary surrender of a license
             322      issued under this chapter.
             323          (2) Tender and acceptance of a voluntary surrender of a license under Subsection (1):
             324          (a) does not prevent the division from pursuing additional action, including
             325      disciplinary action, that relates to the surrendered license and is authorized by this chapter or by
             326      rules made under this chapter; and
             327          (b) terminates all rights and privileges associated with the license.
             328          (3) A person may restore the rights and privileges described in Subsection (2)(b) only if
             329      the person reapplies for, and is granted, licensure in accordance with the requirements
             330      described in this chapter.
             331          (4) Any documentation relating to the tender and acceptance of a voluntary surrender is
             332      a public record.
             333          Section 3. Section 61-2c-402.1 is amended to read:
             334           61-2c-402.1. Adjudicative proceedings -- Review.
             335          (1) (a) Before an action described in Section 61-2c-402 may be taken, the division
             336      shall:
             337          (i) give notice to the person against whom the action is brought; and


             338          (ii) commence an adjudicative proceeding.
             339          (b) If after the adjudicative proceeding is commenced under Subsection (1)(a) the
             340      presiding officer determines that a person required to be licensed under this chapter has
             341      violated this chapter, the division may take an action described in Section 61-2c-402 by written
             342      order.
             343          (2) In accordance with Title 63G, Chapter 4, Administrative Procedures Act, a person
             344      against whom action is taken under this section may seek review by the executive director of
             345      the action.
             346          (3) If a person prevails in a judicial appeal and the court finds that the state action was
             347      undertaken without substantial justification, the court may award reasonable litigation expenses
             348      to that individual or entity as provided under Title 78B, Chapter 8, Part 5, Small Business
             349      Equal Access to Justice Act.
             350          (4) (a) An order issued under this section takes effect 30 days after the service of the
             351      order unless otherwise provided in the order.
             352          (b) If an appeal of an order issued under this section is taken by a person, the division
             353      may stay enforcement of the order in accordance with Section 63G-4-405 .
             354          (5) If ordered by the court of competent jurisdiction, the division shall promptly take an
             355      action described in Section 61-2c-402 against a license granted under this chapter.
             356          (6) (a) Except as provided in Subsection (6)(b), the division shall commence a
             357      disciplinary action under this chapter no later than the earlier of the following:
             358          (i) four years after the day on which the violation is reported to the division; or
             359          (ii) 10 years after the day on which the violation occurred.
             360          (b) The division may commence a disciplinary action under this chapter after the time
             361      period described in Subsection (6)(a) expires if:
             362          (i) (A) the disciplinary action is in response to a civil or criminal judgment or
             363      settlement; and
             364          (B) the division initiates the disciplinary action no later than one year after the day on
             365      which the judgment is issued or the settlement is final; or


             366          (ii) the division and the person subject to a disciplinary action enter into a written
             367      stipulation to extend the time period described in Subsection (6)(a).
             368          Section 4. Section 61-2f-103 is amended to read:
             369           61-2f-103. Real Estate Commission.
             370          (1) There is created within the division a Real Estate Commission. The commission
             371      shall:
             372          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             373      make rules for the administration of this chapter that are not inconsistent with this chapter,
             374      including:
             375          (i) licensing of:
             376          (A) a principal broker;
             377          (B) an associate broker; and
             378          (C) a sales agent;
             379          (ii) registration of:
             380          (A) an entity; and
             381          (B) a branch office;
             382          (iii) prelicensing and postlicensing education curricula;
             383          (iv) examination procedures;
             384          (v) the certification and conduct of:
             385          (A) a real estate school;
             386          (B) a course provider; or
             387          (C) an instructor;
             388          (vi) proper handling of money received by a licensee under this chapter;
             389          (vii) brokerage office procedures and recordkeeping requirements;
             390          (viii) property management;
             391          (ix) standards of conduct for a licensee under this chapter;
             392          (x) a rule made under Section 61-2f-307 regarding an undivided fractionalized
             393      long-term estate; and


             394          (xi) if the commission determines necessary, a rule as provided in Subsection
             395      61-2f-306 (3) regarding a legal form;
             396          (b) establish, with the concurrence of the division, a fee provided for in this chapter,
             397      except a fee imposed under Part 5, Real Estate Education, Research, and Recovery Fund Act;
             398          (c) conduct an administrative hearing not delegated by the commission to an
             399      administrative law judge or the division relating to the:
             400          (i) licensing of an applicant;
             401          (ii) conduct of a licensee;
             402          (iii) the certification or conduct of a real estate school, course provider, or instructor
             403      regulated under this chapter; or
             404          (iv) violation of this chapter by any person;
             405          (d) with the concurrence of the director, impose a sanction as provided in Section
             406      61-2f-404 ;
             407          (e) advise the director on the administration and enforcement of a matter affecting the
             408      division and the real estate sales and property management industries;
             409          (f) advise the director on matters affecting the division budget;
             410          (g) advise and assist the director in conducting real estate seminars; and
             411          (h) perform other duties as provided by this chapter.
             412          (2) (a) Except as provided in Subsection (2)(b), a state entity may not, without the
             413      concurrence of the commission, make a rule that changes the rights, duties, or obligations of
             414      buyers, sellers, or persons licensed under this chapter in relation to a real estate transaction
             415      between private parties.
             416          (b) Subsection (2)(a) does not apply to a rule made:
             417          (i) under Title 31A, Insurance Code, or Title 7, Financial Institutions Act; or
             418          (ii) by the Department of Commerce or any division or other rulemaking body within
             419      the Department of Commerce.
             420          [(2)] (3) (a) The commission shall be comprised of five members appointed by the
             421      governor and approved by the Senate.


             422          (b) Four of the commission members shall:
             423          (i) have at least five years' experience in the real estate business; and
             424          (ii) hold an active principal broker, associate broker, or sales agent license.
             425          (c) One commission member shall be a member of the general public.
             426          (d) The governor may not appoint a commission member described in Subsection [(2)]
             427      (3)(b) who, at the time of appointment, resides in the same county in the state as another
             428      commission member.
             429          (e) At least one commission member described in Subsection [(2)] (3)(b) shall at the
             430      time of an appointment reside in a county that is not a county of the first or second class.
             431          [(3)] (4) (a) Except as required by Subsection [(3)] (4)(b), as terms of current
             432      commission members expire, the governor shall appoint each new member or reappointed
             433      member to a four-year term ending June 30.
             434          (b) Notwithstanding the requirements of Subsection [(3)] (4)(a), the governor shall, at
             435      the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             436      commission members are staggered so that approximately half of the commission is appointed
             437      every two years.
             438          (c) Upon the expiration of the term of a member of the commission, the member of the
             439      commission shall continue to hold office until a successor is appointed and qualified.
             440          (d) A commission member may not serve more than two consecutive terms.
             441          (e) Members of the commission shall annually select one member to serve as chair.
             442          [(4)] (5) When a vacancy occurs in the membership for any reason, the governor, with
             443      the consent of the Senate, shall appoint a replacement for the unexpired term.
             444          [(5)] (6) A member may not receive compensation or benefits for the member's service,
             445      but may receive per diem and travel expenses in accordance with:
             446          (a) Section 63A-3-106 ;
             447          (b) Section 63A-3-107 ; and
             448          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             449      63A-3-107 .


             450          [(6)] (7) (a) The commission shall meet at least monthly.
             451          (b) The director may call additional meetings:
             452          (i) at the director's discretion;
             453          (ii) upon the request of the chair; or
             454          (iii) upon the written request of three or more commission members.
             455          [(7)] (8) Three members of the commission constitute a quorum for the transaction of
             456      business.
             457          Section 5. Section 61-2f-204 is amended to read:
             458           61-2f-204. Licensing fees and procedures -- Renewal fees and procedures.
             459          (1) (a) Upon filing an application for an examination for a license under this chapter,
             460      the applicant shall pay a nonrefundable fee established in accordance with Section 63J-1-504
             461      for admission to the examination.
             462          (b) An applicant for a principal broker, associate broker, or sales agent license shall
             463      pay a nonrefundable fee as determined by the commission with the concurrence of the division
             464      under Section 63J-1-504 for issuance of an initial license or license renewal.
             465          (c) A license issued under this Subsection (1) shall be issued for a period of not less
             466      than two years as determined by the division with the concurrence of the commission.
             467          (d) (i) Any of the following applicants shall comply with this Subsection (1)(d):
             468          (A) a new sales agent applicant;
             469          (B) a principal broker applicant; or
             470          (C) an associate broker applicant.
             471          (ii) An applicant described in this Subsection (1)(d) shall:
             472          (A) submit fingerprint cards in a form acceptable to the division at the time the license
             473      application is filed; and
             474          (B) consent to a criminal background check by the Utah Bureau of Criminal
             475      Identification and the Federal Bureau of Investigation regarding the application.
             476          (iii) The division shall request the Department of Public Safety to complete a Federal
             477      Bureau of Investigation criminal background check for each applicant described in this


             478      Subsection (1)(d) through the national criminal history system or any successor system.
             479          (iv) The applicant shall pay the cost of the criminal background check and the
             480      fingerprinting.
             481          (v) Money paid to the division by an applicant for the cost of the criminal background
             482      check is nonlapsing.
             483          (e) (i) A license issued under Subsection (1)(d) is conditional, pending completion of
             484      the criminal background check.
             485          (ii) A license is immediately and automatically revoked if the criminal background
             486      check discloses the applicant fails to accurately disclose a criminal history involving:
             487          (A) the real estate industry; or
             488          (B) a felony conviction on the basis of an allegation of fraud, misrepresentation, or
             489      deceit.
             490          (iii) If a criminal background check discloses that an applicant fails to accurately
             491      disclose a criminal history other than one described in Subsection (1)(e)(ii), the division:
             492          (A) shall review the application; and
             493          (B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
             494      Utah Administrative Rulemaking Act, may:
             495          (I) place a condition on a license;
             496          (II) place a restriction on a license;
             497          (III) revoke a license; or
             498          (IV) refer the application to the commission for a decision.
             499          (iv) A person whose conditional license is automatically revoked under Subsection
             500      (1)(e)(ii) or whose license is conditioned, restricted, or revoked under Subsection (1)(e)(iii)
             501      may have a hearing after the action is taken to challenge the action. The hearing shall be
             502      conducted in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             503          (v) The director shall designate one of the following to act as the presiding officer in a
             504      hearing described in Subsection (1)(e)(iv):
             505          (A) the division; or


             506          (B) the division with the concurrence of the commission.
             507          (vi) The decision on whether relief from an action under this Subsection (1)(e) will be
             508      granted shall be made by the presiding officer.
             509          (vii) Relief from an automatic revocation under Subsection (1)(e)(ii) may be granted
             510      only if:
             511          (A) the criminal history upon which the division based the revocation:
             512          (I) did not occur; or
             513          (II) is the criminal history of another person;
             514          (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
             515          (II) the applicant has a reasonable good faith belief at the time of application that there
             516      was no criminal history to be disclosed; or
             517          (C) the division fails to follow the prescribed procedure for the revocation.
             518          (viii) If a license is revoked or a revocation under this Subsection (1)(e) is upheld after
             519      a hearing, the individual may not apply for a new license until at least 12 months after the day
             520      on which the license is revoked.
             521          (2) (a) (i) A license expires if it is not renewed on or before its expiration date.
             522          (ii) As a condition of renewal, an active licensee shall demonstrate competence by
             523      completing 18 hours of continuing education within a two-year renewal period subject to rules
             524      made by the commission, with the concurrence of the division.
             525          (iii) In making a rule described in Subsection (2)(c)(ii), the division and commission
             526      shall consider:
             527          (A) evaluating continuing education on the basis of competency, rather than course
             528      time;
             529          (B) allowing completion of courses in a significant variety of topic areas that the
             530      division and commission determine are valuable in assisting an individual licensed under this
             531      chapter to increase the individual's competency; and
             532          (C) allowing completion of courses that will increase a licensee's professional
             533      competency in the area of practice of the licensee.


             534          (iv) The division may award credit to a licensee for a continuing education requirement
             535      of this Subsection (2)(a) for a reasonable period of time upon a finding of reasonable cause,
             536      including:
             537          (A) military service; or
             538          (B) if an individual is elected or appointed to government service, the individual's
             539      government service during which the individual spends a substantial time addressing real estate
             540      issues subject to conditions established by rule made in accordance with Title 63G, Chapter 3,
             541      Utah Administrative Rulemaking Act.
             542          (b) For a period of 30 days after [the expiration date of] the day on which a license
             543      expires, the license may be reinstated [upon]:
             544          (i) if the applicant's license was inactive on the day on which the applicant's license
             545      expired, upon payment of a renewal fee and a late fee determined by the commission with the
             546      concurrence of the division under Section 63J-1-504 ; or
             547          (ii) if the applicant's license was active on the day on which the applicant's license
             548      expired, upon [(i)] payment of a renewal fee and a late fee determined by the commission with
             549      the concurrence of the division under Section 63J-1-504 [;], and [(ii)] providing proof
             550      acceptable to the division and the commission of the licensee having:
             551          (A) completed the hours of education required by Subsection (2)(a); or
             552          (B) demonstrated competence as required under Subsection (2)(a).
             553          (c) After the 30-day period described in Subsection (2)(b), and until six months after
             554      the [expiration date] day on which an active or inactive license expires, the license may be
             555      reinstated by:
             556          (i) paying a renewal fee and a late fee determined by the commission with the
             557      concurrence of the division under Section 63J-1-504 ;
             558          (ii) providing to the division proof of satisfactory completion of six hours of continuing
             559      education:
             560          (A) in addition to the requirements for a timely renewal; and
             561          (B) on a subject determined by the commission by rule made in accordance with Title


             562      63G, Chapter 3, Utah Administrative Rulemaking Act; and
             563          (iii) providing proof acceptable to the division and the commission of the licensee
             564      having:
             565          (A) completed the hours of education required under Subsection (2)(a); or
             566          (B) demonstrated competence as required under Subsection (2)(a).
             567          (d) After the six-month period described in Subsection (2)(c), and until one year after
             568      the [expiration date] day on which an active or inactive license expires, the license may be
             569      reinstated by:
             570          (i) paying a renewal fee and a late fee determined by the commission with the
             571      concurrence of the division under Section 63J-1-504 ;
             572          (ii) providing to the division proof of satisfactory completion of 24 hours of continuing
             573      education:
             574          (A) in addition to the requirements for a timely renewal; and
             575          (B) on a subject determined by the commission by rule made in accordance with Title
             576      63G, Chapter 3, Utah Administrative Rulemaking Act; and
             577          (iii) providing proof acceptable to the division and the commission of the licensee
             578      having:
             579          (A) completed the hours of education required by Subsection (2)(a); or
             580          (B) demonstrated competence as required under Subsection (2)(a).
             581          (e) The division shall relicense a person who does not renew that person's license
             582      within one year as prescribed for an original application.
             583          (f) Notwithstanding Subsection (2)(a), the division may extend the term of a license
             584      that would expire under Subsection (2)(a) except for the extension if:
             585          (i) (A) the person complies with the requirements of this section to renew the license;
             586      and
             587          (B) the renewal application remains pending at the time of the extension; or
             588          (ii) at the time of the extension, there is pending a disciplinary action under this
             589      chapter.


             590          (3) (a) As a condition for the activation of an inactive license that was in an inactive
             591      status at the time of the licensee's most recent renewal, the licensee shall supply the division
             592      with proof of:
             593          (i) successful completion of the respective sales agent or principal broker licensing
             594      examination within six months before applying to activate the license; or
             595          (ii) the successful completion of the hours of continuing education that the licensee
             596      would have been required to complete under Subsection (2)(a) if the license had been on active
             597      status at the time of the licensee's most recent renewal.
             598          (b) The commission may, in accordance with Title 63G, Chapter 3, Utah
             599      Administrative Rulemaking Act, establish by rule:
             600          (i) the nature or type of continuing education required for reactivation of a license; and
             601          (ii) how long before reactivation the continuing education must be completed.
             602          Section 6. Section 61-2f-205 is amended to read:
             603           61-2f-205. Form of license -- Display of license.
             604          (1) The division shall issue to a licensee a wall license that contains:
             605          (a) the name and address of the licensee;
             606          (b) the seal of the state; and
             607          (c) any other matter prescribed by the division.
             608          (2) The division shall send, by mail or email, the license described in Subsection (1) to
             609      the licensee at the mailing address or email address furnished by the licensee.
             610          (3) A principal broker shall keep the license of the principal broker and the license of
             611      any associate broker or sales agent affiliated with the principal broker in the office in which the
             612      licensee works to be made available on request.
             613          Section 7. Section 61-2f-208 is enacted to read:
             614          61-2f-208. Surrender of license.
             615          (1) The division may, by written agreement, accept the voluntary surrender of a license
             616      issued under this chapter.
             617          (2) Tender and acceptance of a voluntary surrender of a license under Subsection (1):


             618          (a) does not prevent the division from pursuing additional action, including
             619      disciplinary action, that relates to the surrendered license and is authorized by this chapter or by
             620      rules made under this chapter; and
             621          (b) terminates all rights and privileges associated with the license.
             622          (3) A person may restore the rights and privileges described in Subsection (2)(b) only if
             623      the person reapplies for, and is granted, licensure in accordance with the requirements
             624      described in this chapter.
             625          (4) Any documentation relating to the tender and acceptance of a voluntary surrender is
             626      a public record.
             627          Section 8. Section 61-2f-308 is amended to read:
             628           61-2f-308. Brokerage agreements.
             629          (1) As used in this section:
             630          (a) "Brokerage agreement" means a written agreement between a client and a principal
             631      broker:
             632          (i) (A) to list for sale, lease, or exchange, real estate, an option on real estate, or an
             633      improvement on real estate; or
             634          (B) for representation in the purchase, lease, or exchange of real estate, an option on
             635      real estate, or an improvement on real estate; and
             636          (ii) that gives the principal broker the expectation of receiving valuable consideration
             637      in exchange for the principal broker's services.
             638          [(a)] (b) "Client" means a person who makes an exclusive brokerage agreement with a
             639      principal broker under Subsection (1)[(c)](d).
             640          [(b)] (c) "Closed" means that:
             641          (i) the documents required to be executed under the contract are executed;
             642          (ii) the money required to be paid by either party under the contract is paid in the form
             643      of collected or cleared funds;
             644          (iii) the proceeds of any new loan are delivered by the lender to the seller; and
             645          (iv) the applicable documents are recorded in the office of the county recorder for the


             646      county in which the real estate is located.
             647          [(c)] (d) "Exclusive brokerage agreement" means a [written agreement between a client
             648      and a principal broker: (i) (A) to list for sale, lease, or exchange: (I) real estate; (II) an option
             649      on real estate; or (III) an improvement on real estate; or (B) for representation in the purchase,
             650      lease, or exchange of: (I) real estate; (II) an option on real estate; or (III) an improvement on
             651      real estate; (ii)] brokerage agreement that gives the principal broker the sole right to act as the
             652      agent or representative of the client for the purchase, sale, lease, or exchange of[:] real estate,
             653      an option on real estate, or an improvement on real estate.
             654          [(A) real estate;]
             655          [(B) an option on real estate; or]
             656          [(C) an improvement on real estate; and]
             657          [(iii) that gives the principal broker the expectation of receiving valuable consideration
             658      in exchange for the principal broker's services.]
             659          (2) (a) Except as provided in Subsection (2)(b), a principal broker subject to an
             660      exclusive brokerage agreement shall:
             661          (i) accept delivery of and present to the client offers and counteroffers to buy, lease, or
             662      exchange the client's real estate;
             663          (ii) assist the client in developing, communicating, and presenting offers, counteroffers,
             664      and notices; and
             665          (iii) answer any question the client has concerning:
             666          (A) an offer;
             667          (B) a counteroffer;
             668          (C) a notice; and
             669          (D) a contingency.
             670          (b) A principal broker subject to an exclusive brokerage agreement need not comply
             671      with Subsection (2)(a) after:
             672          (i) (A) an agreement for the sale, lease, or exchange of the real estate, option on real
             673      estate, or improvement on real estate is signed;


             674          (B) the contingencies related to the sale, lease, or exchange are satisfied or waived; and
             675          (C) the sale, lease, or exchange is closed; or
             676          (ii) the exclusive brokerage agreement expires or terminates.
             677          (3) A principal broker who violates this section is subject to Sections 61-2f-404 and
             678      61-2f-405 .
             679          (4) (a) Subject to Subsection (4)(b), a principal broker who represents a buyer may
             680      directly contact a seller who is subject to a brokerage agreement or an exclusive brokerage
             681      agreement if:
             682          (i) the seller's principal broker gives the buyer's principal broker written authorization;
             683      or
             684          (ii) subject to Subsection (4)(c), the seller gives the buyer's principal broker written
             685      authorization.
             686          (b) If a buyer's principal broker obtains a written authorization described in Subsection
             687      (4)(a), the buyer's principal broker may contact the seller directly to:
             688          (i) discuss items related to a real estate transaction between the buyer and the seller;
             689          (ii) provide the seller with blank state-approved forms; and
             690          (iii) negotiate the terms of a real estate transaction between the buyer and the seller.
             691          (c) A buyer's principal broker may not solicit from a seller a written authorization
             692      described in Subsection (4)(a)(ii).
             693          (5) A principal broker who, in accordance with Subsection (4), engages in the conduct
             694      described in Subsection (4)(b) is not, by that conduct, representing that the principal broker is
             695      acting on behalf of both the buyer and the seller.
             696          Section 9. Section 61-2f-402 is amended to read:
             697           61-2f-402. Investigations.
             698          (1) The division may make an investigation within or outside of this state as the
             699      division considers necessary to determine whether a person has violated, is violating, or is
             700      about to violate this chapter or any rule or order under this chapter.
             701          (2) To aid in the enforcement of this chapter or in the prescribing of rules and forms


             702      under this chapter, the division may require or permit a person to file a statement in writing,
             703      under oath or otherwise as to the facts and circumstances concerning the matter to be
             704      investigated.
             705          (3) For the purpose of the investigation described in Subsection (1), the division or an
             706      employee designated by the division may:
             707          (a) administer an oath or affirmation;
             708          (b) subpoena witnesses and evidence;
             709          (c) take evidence;
             710          (d) require the production of a book, paper, contract, record, other document, or
             711      information relevant to the investigation; and
             712          (e) serve a subpoena by certified mail.
             713          (4) (a) If a person is found to have violated this chapter or a rule made under this
             714      chapter, the person shall pay the costs incurred by the division to copy a book, paper, contract,
             715      document, or record required under this chapter, including the costs incurred to copy an
             716      electronic book, paper, contract, document, or record in a universally readable format.
             717          (b) If a person fails to pay the costs described in Subsection (4)(a) when due, the
             718      person's license, certification, or registration is automatically suspended:
             719          (i) beginning the day on which the payment of costs is due; and
             720          (ii) ending the day on which the costs are paid.
             721          (5) (a) Except as provided in Subsection (5)(b), the division shall commence a
             722      disciplinary action under this chapter no later than the earlier of the following:
             723          (i) four years after the day on which the violation is reported to the division; or
             724          (ii) 10 years after the day on which the violation occurred.
             725          (b) The division may commence a disciplinary action under this chapter after the time
             726      period described in Subsection (5)(a) expires if:
             727          (i) (A) the disciplinary action is in response to a civil or criminal judgment or
             728      settlement; and
             729          (B) the division initiates the disciplinary action no later than one year after the day on


             730      which the judgment is issued or the settlement is final; or
             731          (ii) the division and the person subject to a disciplinary action enter into a written
             732      stipulation to extend the time period described in Subsection (5)(a).
             733          Section 10. Section 61-2f-406 is amended to read:
             734           61-2f-406. Grounds for revocation of principal broker's license.
             735          (1) [(a)] An unlawful act or violation of this chapter committed by a person listed in
             736      Subsection [(1)(b)] (2) is cause for:
             737          [(i)] (a) the revocation, suspension, or probation of a principal broker's license; or
             738          [(ii)] (b) the imposition of a fine against the principal broker in an amount not to
             739      exceed $5,000 per violation.
             740          [(b)] (2) Subsection (1)[(a)] applies to an act or violation by any of the following:
             741          [(i)] (a) a sales agent or associate broker employed by a principal broker;
             742          [(ii)] (b) a sales agent or associate broker engaged as an independent contractor by or
             743      on behalf of a principal broker; or
             744          [(iii)] (c) an employee, officer, or member of a principal broker.
             745          [(2) (a) The revocation or suspension of a principal broker license automatically
             746      inactivates an associate broker or sales agent license granted to an individual by reason of that
             747      individual's affiliation with the principal broker whose license is revoked or suspended,
             748      pending a change of principal broker affiliation.]
             749          [(b) A principal broker shall, before the effective date of a suspension or revocation of
             750      the principal broker's license, notify in writing every licensee affiliated with the principal
             751      broker of the revocation or suspension of the principal broker license.]
             752          Section 11. Section 61-2f-410 is enacted to read:
             753          61-2f-410. Effect of expiration, revocation, or suspension -- Notice required.
             754          (1) (a) The revocation or suspension of a principal broker license automatically
             755      inactivates an associate broker license or a sales agent license that was issued based upon the
             756      licensee's affiliation with the principal broker whose license is revoked or suspended, pending a
             757      change of principal broker affiliation.


             758          (b) If an individual's associate broker license or sales agent license becomes inactive
             759      under Subsection (1)(a), the individual may affiliate with another principal broker licensed
             760      under this chapter.
             761          (2) Before the day on which a suspension or revocation of a principal broker's license is
             762      effective, the principal broker shall notify, in writing, each licensee affiliated with the principal
             763      broker:
             764          (a) that the principal broker's license will be revoked or suspended;
             765          (b) of the day on which the revocation or suspension is effective; and
             766          (c) that the licensee's license will be inactive beginning on the day on which the
             767      principal broker's license is revoked or suspended.
             768          (3) If a principal broker fails to timely renew the principal broker's license in
             769      accordance with this chapter, on the day on which the principal broker's license expires, the
             770      principal broker shall notify, in writing, each licensee affiliated with the principal broker:
             771          (a) that the principal broker's license is expired;
             772          (b) of the day on which the principal broker's license expired; and
             773          (c) that the licensee's license is inactive beginning on the day on which the principal
             774      broker's license expired.
             775          Section 12. Section 61-2g-102 is amended to read:
             776           61-2g-102. Definitions.
             777          (1) As used in this chapter:
             778          (a) (i) "Appraisal" means an analysis, opinion, or conclusion relating to the nature,
             779      quality, value, or utility of a specified interest in, or aspect of, identified real estate or identified
             780      real property.
             781          (ii) An appraisal is classified by the nature of the assignment as a valuation appraisal,
             782      an analysis assignment, or a review assignment in accordance with the following definitions:
             783          (A) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that
             784      relates to the nature, quality, or utility of identified real estate or identified real property.
             785          (B) "Review assignment" means an unbiased analysis, opinion, or conclusion that


             786      forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis
             787      assignment.
             788          (C) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
             789      estimates the value of an identified parcel of real estate or identified real property at a particular
             790      point in time.
             791          (b) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as
             792      an Illinois not-for-profit corporation on November 30, 1987.
             793          (c) (i) "Appraisal report" means a communication, written or oral, of an appraisal.
             794          (ii) An appraisal report is classified by the nature of the assignment as a valuation
             795      report, analysis report, or review report in accordance with the definitions provided in
             796      Subsection (1)(a)(ii).
             797          (iii) The testimony of a person relating to the person's analyses, conclusions, or
             798      opinions concerning identified real estate or identified real property is considered to be an oral
             799      appraisal report.
             800          (d) "Appraisal Qualification Board" means the Appraisal Qualification Board of the
             801      Appraisal Foundation.
             802          (e) "Board" means the Real Estate Appraiser Licensing and Certification Board that is
             803      established in Section 61-2g-204 .
             804          (f) "Certified appraisal report" means a written or oral appraisal report that is certified
             805      by a state-certified general appraiser or state-certified residential appraiser.
             806          (g) "Concurrence" means that the entities that are given a concurring role jointly agree
             807      to an action.
             808          (h) (i) (A) "Consultation service" means an engagement to provide a real estate
             809      valuation service analysis, opinion, conclusion, or other service that does not fall within the
             810      definition of appraisal.
             811          (B) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
             812      review assignment.
             813          (ii) Regardless of the intention of the client or employer, if a person prepares an


             814      unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
             815      be an appraisal and not a consultation service.
             816          (i) "Contingent fee" means a fee or other form of compensation, payment of which is
             817      dependent on or conditioned by:
             818          (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
             819      performing the analysis, opinion, or conclusion; or
             820          (ii) achieving a result specified by the person requesting the analysis, opinion, or
             821      conclusion.
             822          (j) "Credential" means a state-issued registration, license, or certification that allows an
             823      individual to perform any act or service that requires licensure or certification under this
             824      chapter.
             825          [(j)] (k) "Division" means the Division of Real Estate of the Department of Commerce.
             826          (l) "Executive director" means the executive director of the Department of Commerce.
             827          [(k)] (m) "Federally related transaction" means a real estate related transaction that is
             828      required by federal law or by federal regulation to be supported by an appraisal prepared by:
             829          (i) a state-licensed appraiser; or
             830          (ii) a state-certified appraiser.
             831          [(l)] (n) "Real estate" means an identified parcel or tract of land including
             832      improvements if any.
             833          [(m)] (o) "Real estate appraisal activity" means the act or process of making an
             834      appraisal of real estate or real property and preparing an appraisal report.
             835          [(n)] (p) "Real estate related transaction" means:
             836          (i) the sale, lease, purchase, investment in, or exchange of real property or an interest in
             837      real property, or the financing of such a transaction;
             838          (ii) the refinancing of real property or an interest in real property; or
             839          (iii) the use of real property or an interest in real property as security for a loan or
             840      investment, including mortgage-backed securities.
             841          [(o)] (q) "Real property" means one or more defined interests, benefits, or rights


             842      inherent in the ownership of real estate.
             843          [(p)] (r) "State-certified general appraiser" means a person who holds a current, valid
             844      certification as a state-certified general appraiser issued under this chapter.
             845          [(q)] (s) "State-certified residential appraiser" means a person who holds a current,
             846      valid certification as a state-certified residential real estate appraiser issued under this chapter.
             847          [(r)] (t) "State-licensed appraiser" means a person who holds a current, valid license as
             848      a state-licensed appraiser issued under this chapter.
             849          [(s)] (u) "Trainee" means an individual who:
             850          (i) does not hold an appraiser license or appraiser certification issued under this
             851      chapter;
             852          (ii) works under the direct supervision of a state-certified appraiser to earn experience
             853      for licensure; and
             854          (iii) is registered as a trainee under this chapter.
             855          [(t)] (v) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
             856      conclusion relating to the nature, quality, value, or utility of identified real estate or identified
             857      real property that is prepared by a person who is employed or retained to act, or would be
             858      perceived by third parties or the public as acting, as a disinterested third-party in rendering the
             859      analysis, opinion, or conclusion.
             860          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             861      meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
             862      Utah Administrative Rulemaking Act.
             863          (b) If a term not defined in this section is not defined by rule, the term shall have the
             864      meaning commonly accepted in the business community.
             865          Section 13. Section 61-2g-205 is amended to read:
             866           61-2g-205. Duties of board.
             867          (1) (a) The board shall provide technical assistance to the division relating to real estate
             868      appraisal standards and real estate appraiser qualifications.
             869          (b) The board has the powers and duties listed in this section.


             870          (2) The board shall:
             871          (a) determine the experience and education requirements appropriate for a person
             872      licensed under this chapter;
             873          (b) determine the experience and education requirements appropriate for a person
             874      certified under this chapter:
             875          (i) in compliance with the minimum requirements of Financial Institutions Reform,
             876      Recovery, and Enforcement Act of 1989; and
             877          (ii) consistent with the intent of this chapter;
             878          (c) determine the appraisal related acts that may be performed by:
             879          (i) a trainee on the basis of the trainee's education and experience;
             880          (ii) clerical staff; and
             881          (iii) a person who:
             882          (A) does not hold a license or certification; and
             883          (B) assists an appraiser licensed or certified under this chapter in providing appraisal
             884      services or consultation services;
             885          (d) determine the procedures for a trainee to register and to renew a registration with
             886      the division; and
             887          (e) develop one or more programs to upgrade and improve the experience, education,
             888      and examinations as required under this chapter.
             889          (3) [(a)] The experience and education requirements [established] determined by the
             890      board for a person licensed or certified under this chapter shall [be] meet or exceed the
             891      minimum criteria established by the Appraisal Qualification Board[, unless, after notice and a
             892      public hearing held in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             893      Act, the board finds that the minimum criteria are not appropriate for a state-licensed appraiser
             894      or a state-certified appraiser in this state].
             895          [(b) If under Subsection (3)(a) the board makes a finding that the minimum criteria are
             896      not appropriate, the board shall recommend appropriate criteria to the Legislature.]
             897          (4) The board shall:


             898          (a) determine the continuing education requirements appropriate for the renewal of a
             899      license, certification, or registration issued under this chapter[,] [except that the continuing
             900      education requirements established by the board shall at least] that meet or exceed the
             901      minimum criteria established by the Appraisal Qualification Board;
             902          (b) develop one or more programs to upgrade and improve continuing education; and
             903          (c) recommend to the division one or more available continuing education courses that
             904      meet the requirements of this chapter.
             905          (5) (a) The board shall consider the proper interpretation or explanation of the Uniform
             906      Standards of Professional Appraisal Practice as required by Section 61-2g-403 when:
             907          (i) an interpretation or explanation is necessary in the enforcement of this chapter; and
             908          (ii) the Appraisal Standards Board of the Appraisal Foundation has not issued an
             909      interpretation or explanation.
             910          (b) If the conditions of Subsection (5)(a) are met, the board shall recommend to the
             911      division the appropriate interpretation or explanation that the division should adopt as a rule
             912      under this chapter.
             913          (c) The board may by rule made in accordance with Title 63G, Chapter 3, Utah
             914      Administrative Rulemaking Act, and Section 61-2g-403 , and with the concurrence of the
             915      division, provide for an exemption from a provision of the Uniform Standards of Professional
             916      Appraisal Practice for an activity engaged in on behalf of a governmental entity.
             917          (6) (a) The board shall conduct an administrative hearing, not delegated by the board to
             918      an administrative law judge, in connection with a disciplinary proceeding under Section
             919      61-2g-504 concerning:
             920          (i) a person required to be licensed, certified, or registered under this chapter; and
             921          (ii) the person's failure to comply with this chapter and the Uniform Standards of
             922      Professional Appraisal Practice as adopted under Section 61-2g-403 .
             923          (b) The board, with the concurrence of the division, shall issue in an administrative
             924      hearing a decision that contains findings of fact and conclusions of law.
             925          (c) When a determination is made that a person required to be licensed, certified, or


             926      registered under this chapter has violated this chapter, the division shall implement disciplinary
             927      action determined through concurrence of the board and the division.
             928          (7) A member of the board is immune from a civil action or criminal prosecution for a
             929      disciplinary proceeding concerning a person required to be registered, licensed, certified, or
             930      approved as an expert under this chapter if the action is taken without malicious intent and in
             931      the reasonable belief that the action taken was taken pursuant to the powers and duties vested
             932      in a member of the board under this chapter.
             933          (8) (a) The board shall require and pass upon proof necessary to determine the honesty,
             934      competency, integrity, [and] truthfulness, and general fitness to command the confidence of the
             935      community of an applicant for:
             936          [(a)] (i) original licensure, certification, or registration; and
             937          [(b)] (ii) renewal licensure, certification, or registration.
             938          (b) The board may delegate to the division the authority to:
             939          (i) review a class or category of applications for an original or renewed license,
             940      certification, or registration;
             941          (ii) determine whether an applicant meets the qualifications for licensure, certification,
             942      or registration;
             943          (iii) conduct any necessary hearing on an application for an original or renewed license,
             944      certification, or registration; and
             945          (iv) approve or deny an application for an original or renewed license, certification, or
             946      registration.
             947          (c) Except as provided in Subsections (8)(d) and (e), and in accordance with Title 63G,
             948      Chapter 4, Administrative Procedures Act, an applicant who is denied licensure, certification,
             949      or registration under this chapter may submit a request for agency review to the executive
             950      director of the division within 30 days after the day on which the board issues the order
             951      denying the applicant's application.
             952          (d) If the board delegates to the division the authority to approve or deny an application
             953      without the concurrence of the board under Subsection (8)(b), and the division denies an


             954      application for licensure, certification, or registration, the applicant may, in accordance with
             955      Title 63G, Chapter 4, Administrative Procedures Act, petition the board for a de novo review
             956      of the application within 30 days after the day on which the division issues the order denying
             957      the applicant's application.
             958          (e) If the board denies an applicant's application for licensure, certification, or
             959      registration after a de novo review under Subsection (8)(d), the applicant may, in accordance
             960      with Title 63G, Chapter 4, Administrative Procedures Act, petition the executive director for
             961      review of the board's denial within 30 days after the day on which the board issues the order
             962      denying the applicant's application.
             963          Section 14. Section 61-2g-302 is amended to read:
             964           61-2g-302. Registration as trainee.
             965          (1) [(a)] An individual [is required to] shall register with the division as a trainee
             966      before the individual acts in the capacity of a trainee [earning] or earns experience for
             967      licensure.
             968          [(b)] (2) Subject to Subsection (2), the board, with the concurrence of the division,
             969      shall [adopt] make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             970      Rulemaking Act, for:
             971          [(i)] (a) the trainee registration required [by this] under Subsection (1); and
             972          [(ii)] (b) renewal of [the] a trainee registration [required by this Subsection (1)].
             973          [(2) (a) An individual applying to register as a trainee under this chapter shall:]
             974          [(i) submit a fingerprint card in a form acceptable to the division at the time of
             975      applying for registration; and]
             976          [(ii) consent to a criminal background check by:]
             977          [(A) the Utah Bureau of Criminal Identification; and]
             978          [(B) the Federal Bureau of Investigation.]
             979          [(b) The division shall request the Department of Public Safety to complete a Federal
             980      Bureau of Investigation criminal background check for an applicant through a national criminal
             981      history system.]


             982          [(c) The applicant shall pay the cost of:]
             983          [(i) the fingerprinting required by this section; and]
             984          [(ii) the criminal background check required by this section.]
             985          [(d) (i) A registration as a trainee under this chapter is conditional pending completion
             986      of the criminal background check required by this Subsection (2).]
             987          [(ii) A registration is immediately and automatically revoked if a criminal background
             988      check discloses that the applicant fails to accurately disclose a criminal history involving:]
             989          [(A) the appraisal industry; or]
             990          [(B) a felony conviction on the basis of an allegation of fraud, misrepresentation, or
             991      deceit.]
             992          [(iii) If a criminal background check discloses that an applicant fails to accurately
             993      disclose a criminal history other than one described in Subsection (2)(d)(ii), the division shall
             994      review the application, and in accordance with rules made by the division pursuant to Title
             995      63G, Chapter 3, Utah Administrative Rulemaking Act, may:]
             996          [(A) place one or more conditions on a registration;]
             997          [(B) place one or more restrictions on a registration;]
             998          [(C) revoke a registration; or]
             999          [(D) refer the application to the board for a decision.]
             1000          [(iv) An individual whose conditional registration is automatically revoked under
             1001      Subsection (2)(d)(ii) or whose registration is conditioned, restricted, or revoked under
             1002      Subsection (2)(d)(iii) may appeal the action in a hearing conducted by the board:]
             1003          [(A) after the action is taken; and]
             1004          [(B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.]
             1005          [(v) The board may delegate to the division or an administrative law judge the
             1006      authority to conduct a hearing described in Subsection (2)(d)(iv).]
             1007          [(vi) Relief from an automatic revocation under Subsection (2)(d)(ii) may be granted
             1008      only if:]
             1009          [(A) the criminal history upon which the division bases the revocation did not occur or


             1010      is the criminal history of another person;]
             1011          [(B) the revocation is based on a failure to accurately disclose a criminal history, and
             1012      the applicant has a reasonable good faith belief at the time of application that there was no
             1013      criminal history to be disclosed; or]
             1014          [(C) the division fails to follow the prescribed procedure for the revocation.]
             1015          [(e) If a registration is revoked or a revocation is upheld after a hearing described in
             1016      Subsection (2)(d)(iv), the individual may not apply for a new registration for a period of 12
             1017      months after the day on which the registration is revoked.]
             1018          [(f) The board may delegate to the division the authority to make a decision on whether
             1019      relief from a revocation should be granted.]
             1020          [(g) Money paid by an applicant for the cost of the criminal background check is
             1021      nonlapsing.]
             1022          Section 15. Section 61-2g-304.5 is enacted to read:
             1023          61-2g-304.5. Background checks.
             1024          (1) An individual applying for licensure, certification, or registration under this chapter
             1025      shall:
             1026          (a) submit, with the individual's application, a fingerprint card in a form acceptable to
             1027      the division; and
             1028          (b) consent to a criminal background check by:
             1029          (i) the Utah Bureau of Criminal Identification; and
             1030          (ii) the Federal Bureau of Investigation.
             1031          (2) The division shall request that the Department of Public Safety complete a Federal
             1032      Bureau of Investigation criminal background check for each applicant through the national
             1033      criminal history system or any system that succeeds the national criminal history system.
             1034          (3) The applicant shall pay the cost of:
             1035          (a) the fingerprint card described in Subsection (1)(a); and
             1036          (b) a criminal background check.
             1037          (4) (a) A license, certification, or registration issued under this chapter is conditional


             1038      pending completion of a criminal background check.
             1039          (b) A license, certification, or registration issued under this chapter is immediately and
             1040      automatically revoked if a criminal background check reveals that the applicant failed to
             1041      accurately disclose a criminal history that:
             1042          (i) relates to the appraisal industry; or
             1043          (ii) includes a felony conviction based on fraud, misrepresentation, or deceit.
             1044          (c) If a criminal background check reveals that an applicant failed to accurately
             1045      disclose a criminal history other than a type described in Subsection (4)(b), the division shall
             1046      review the application and, in accordance with rules made by the division pursuant to Title
             1047      63G, Chapter 3, Utah Administrative Rulemaking Act, may:
             1048          (i) place one or more conditions on the license, certification, or registration;
             1049          (ii) place one or more restrictions on the license, certification, or registration;
             1050          (iii) revoke the license, certification, or registration; or
             1051          (iv) refer the application to the board for a decision.
             1052          (d) An individual whose conditional license, certification, or registration is
             1053      automatically revoked under Subsection (4)(b) or whose license, certification, or registration is
             1054      conditioned, restricted, or revoked under Subsection (4)(c) may appeal the action in a hearing
             1055      conducted by the board in accordance with Title 63G, Chapter 4, Administrative Procedures
             1056      Act.
             1057          (e) The board may delegate to the division or an administrative law judge the authority
             1058      to conduct a hearing described in Subsection (4)(d).
             1059          (f) The board, the division, or an administrative law judge may reverse an automatic
             1060      revocation under Subsection (4)(b) only if:
             1061          (i) the criminal history upon which the revocation was based did not occur or is the
             1062      criminal history of another individual;
             1063          (ii) at the time the applicant disclosed the applicant's criminal history, the applicant had
             1064      a reasonable good faith belief that there was no criminal history to be disclosed; or
             1065          (iii) the division failed to follow the prescribed procedure for the revocation.


             1066          (5) (a) If an individual's conditional license, certification, or registration is revoked
             1067      under Subsection (4) and the individual does not appeal the revocation in accordance with
             1068      Subsection (4)(d), the individual may not apply for a new certification, license, or registration
             1069      under this chapter for a period of 12 months after the day on which the conditional license,
             1070      certification, or registration is revoked.
             1071          (b) If an individual's conditional license, certification, or registration is revoked, the
             1072      individual appeals that revocation in accordance with Subsection (4)(d), and the revocation is
             1073      upheld, the individual may not apply for a new license, certification, or registration under this
             1074      chapter for a period of 12 months after the day on which the decision from the appeal is issued.
             1075          (6) The board may delegate to the division the authority to make a decision on whether
             1076      relief from a revocation should be granted.
             1077          (7) Money an applicant pays for the cost of the criminal background check is
             1078      nonlapsing.
             1079          Section 16. Section 61-2g-310 is amended to read:
             1080           61-2g-310. Reciprocal licensure.
             1081          (1) An applicant for licensure or certification in this state who is [licensed or certified]
             1082      credentialed under the laws of any other state, territory, or district may obtain a [license or
             1083      certification] reciprocal credential in this state [upon the terms and conditions determined by
             1084      the division and the board, if, in the determination of the division and the board] if:
             1085          [(1) the state, territory, or the District of Columbia is considered to have substantially
             1086      equivalent licensing laws for real estate appraisers;]
             1087          [(2) the laws of that state, territory, or the District of Columbia accord substantially
             1088      equal reciprocal rights to a person licensed or certified and in good standing in this state; and]
             1089          [(3) no formal charges alleging violation of state appraisal licensing or certification
             1090      laws have been filed against the applicant by the applicant's state of domicile.]
             1091          (a) the individual holds a current, valid credential issued by a state that, on the day on
             1092      which the individual submits an application, is in compliance with Title XI of the Financial
             1093      Institutions Reform, Recovery and Enforcement Act of 1989, as determined by the Appraisal


             1094      Subcommittee of the Federal Financial Institutions Examination Council; and
             1095          (b) the credentialing requirements of that state, that are in force on the day on which
             1096      the individual submits an application, meet or exceed the credentialing requirements described
             1097      in this chapter and the rules made under this chapter.
             1098          (2) An individual who holds a reciprocal credential described in Subsection (1) shall
             1099      comply with all statutes and rules that govern the appraisal industry in this state, including
             1100      requirements relating to:
             1101          (a) the payment of fees; and
             1102          (b) continuing education.
             1103          Section 17. Section 61-2g-311 is amended to read:
             1104           61-2g-311. State-licensed appraiser -- Authority and qualifications.
             1105          (1) A state-licensed appraiser is authorized to appraise complex and noncomplex 1-4
             1106      family residential units in this state having a transaction value permitted under the Financial
             1107      Institutions Reform, Recovery, and Enforcement Act of 1989, and related federal regulations.
             1108          (2) A state-licensed appraiser is authorized to appraise vacant or unimproved land
             1109      having a transaction value permitted under the Financial Institutions Reform, Recovery, and
             1110      Enforcement Act of 1989, and related federal regulations that is utilized for 1-4 family
             1111      purposes or for which the highest and best use is 1-4 family purposes and subdivisions for
             1112      which a development analysis/appraisal is not necessary.
             1113          (3) A state-licensed appraiser may not issue a certified appraisal report.
             1114          (4) To qualify as a state-licensed appraiser, an applicant must:
             1115          (a) be of good moral character;
             1116          (b) demonstrate honesty, competency, integrity, [and] truthfulness, and general fitness
             1117      to command the confidence of the community;
             1118          (c) pass the licensing examination with a satisfactory score as determined by the
             1119      Appraisal Qualification Board;
             1120          (d) successfully complete [not less than 150 classroom hours in courses of study that
             1121      relate to:] the educational requirements established by rule in accordance with Subsection (5);


             1122      and
             1123          [(i) real estate appraisal;]
             1124          [(ii) the Uniform Standards of Professional Appraisal Practice; and]
             1125          [(iii) ethical rules to be observed by a real estate appraiser as required by Section
             1126      61-2g-403 ; and]
             1127          (e) possess [the minimum number of hours of] the experience in real property appraisal
             1128      [as] established by rule in accordance with Subsection (5).
             1129          [(5) The courses of study under Subsection (4)(d) shall be conducted by:]
             1130          [(a) a college or university;]
             1131          [(b) a community or junior college;]
             1132          [(c) a real estate appraisal or real estate related organization;]
             1133          [(d) a state or federal agency or commission;]
             1134          [(e) a proprietary school;]
             1135          [(f) a provider approved by a state certification and licensing agency; or]
             1136          [(g) the Appraisal Foundation or its boards.]
             1137          (5) (a) The division shall, with the concurrence of the board, make rules in accordance
             1138      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that establish:
             1139          (i) the educational requirements described in Subsection (4)(d); and
             1140          (ii) the experience in real property appraisal described in Subsection (4)(e).
             1141          (b) The educational and experience requirements established under Subsection (5)(a)
             1142      shall meet or exceed the educational requirements and the hourly experience requirements
             1143      adopted by the Appraisal Qualification Board.
             1144          Section 18. Section 61-2g-312 is amended to read:
             1145           61-2g-312. State-certified appraisers -- Authority.
             1146          (1) A state-certified residential appraiser:
             1147          (a) is authorized to appraise the types of real estate [which] that a state-licensed
             1148      appraiser is authorized to appraise[.];
             1149          [(2) A state-certified residential appraiser is also]


             1150          (b) is authorized to appraise 1-4 unit residential real estate without regard to transaction
             1151      value or complexity[.]; and
             1152          [(3) A state-certified residential appraiser]
             1153          (c) is not authorized to appraise subdivisions for which a development
             1154      analysis/appraisal is necessary.
             1155          [(4)] (2) A state-certified general appraiser is authorized to appraise all types of real
             1156      estate and real property.
             1157          (3) A state-certified appraiser who satisfies all requirements described in this chapter
             1158      and in rule made under this chapter may supervise trainees as allowed by rule.
             1159          Section 19. Section 61-2g-313 is amended to read:
             1160           61-2g-313. State-certified residential appraiser -- Authority and qualifications.
             1161          (1) An applicant for certification as a residential appraiser shall provide to the division
             1162      evidence of:
             1163          (a) the applicant's good moral character, honesty, competency, integrity, [and]
             1164      truthfulness, and general fitness to command the confidence of the community;
             1165          (b) completion of the certification examination with a satisfactory score as determined
             1166      by the Appraisal Qualification Board;
             1167          [(c) (i) an associate degree or higher degree from an accredited:]
             1168          [(A) college;]
             1169          [(B) junior college;]
             1170          [(C) community college; or]
             1171          [(D) university; or]
             1172          [(ii) successfully passing a curriculum determined by rule of collegiate level subject
             1173      matter courses from an accredited:]
             1174          [(A) college;]
             1175          [(B) junior college;]
             1176          [(C) community college; or]
             1177          [(D) university;]


             1178          [(d) satisfactory completion of not less than 200 classroom hours in a curriculum:]
             1179          [(i) of specific appraisal education determined by rule made by the board, with the
             1180      concurrence of the division; and]
             1181          [(ii) that includes a course in the Uniform Standards of Professional Practice or its
             1182      equivalent that is approved by the Appraisal Qualification Board;]
             1183          (c) completion of the educational requirements established by rule in accordance with
             1184      Subsection (3); and
             1185          [(e)] (d) [the minimum number of hours of] experience in real property appraisal as
             1186      established by rule[; and] in accordance with Subsection (3).
             1187          [(f) acquiring the experience required under Subsection (1)(e) within a reasonable
             1188      period, as determined by rule, immediately preceding the filing of the application for
             1189      certification.]
             1190          (2) Upon request by the division, an applicant shall make available to the division for
             1191      examination:
             1192          (a) a detailed listing of the real estate appraisal reports or file memoranda [for each
             1193      year] for which experience is claimed; and
             1194          (b) a sample selected by the division of appraisal reports that the applicant has prepared
             1195      in the course of the applicant's appraisal practice.
             1196          [(3) The classroom hours required by Subsection (1)(d) shall be provided by:]
             1197          [(a) a college or university;]
             1198          [(b) a community or junior college;]
             1199          [(c) a real estate appraisal or real estate related organization;]
             1200          [(d) a state or federal agency or commission;]
             1201          [(e) a proprietary school;]
             1202          [(f) a provider approved by a state certification and licensing agency; or]
             1203          [(g) the Appraisal Foundation or its boards.]
             1204          (3) (a) The division shall, with the concurrence of the board, make rules in accordance
             1205      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that establish:


             1206          (i) the educational requirements described in Subsection (1)(c); and
             1207          (ii) the experience in real property appraisal described in Subsection (1)(d).
             1208          (b) The educational and experience requirements established under Subsection (3)(a)
             1209      shall meet or exceed the educational requirements and the hourly experience requirements
             1210      adopted by the Appraisal Qualification Board.
             1211          Section 20. Section 61-2g-314 is amended to read:
             1212           61-2g-314. State-certified general appraiser -- Application -- Qualifications.
             1213          (1) An applicant for certification as a general appraiser shall provide to the division
             1214      evidence of:
             1215          (a) the applicant's good moral character, honesty, competency, integrity, [and]
             1216      truthfulness, and general fitness to command the confidence of the community;
             1217          (b) completion of the certification examination with a satisfactory score as determined
             1218      by the Appraisal Qualification Board;
             1219          [(c) (i) a bachelors degree or higher degree from an accredited college or university; or]
             1220          [(ii) successfully passing a curriculum determined by rule of collegiate level subject
             1221      matter courses from an accredited:]
             1222          [(A) college;]
             1223          [(B) junior college;]
             1224          [(C) community college; or]
             1225          [(D) university;]
             1226          [(d) satisfactory completion of not less than 300 classroom hours in a curriculum:]
             1227          [(i) of specific appraisal education determined by rule; and]
             1228          [(ii) that includes a course in the Uniform Standards of Professional Practice or its
             1229      equivalent that has been approved by the Appraisal Qualification Board;]
             1230          (c) completion of the educational requirements established by rule in accordance with
             1231      Subsection (3); and
             1232          [(e)] (d) [the minimum number of hours of] experience in real property appraisal as
             1233      established by rule[; and] in accordance with Subsection (3).


             1234          [(f) acquiring the experience required under Subsection (1)(e) within a reasonable
             1235      period, as determined by rule, immediately preceding the filing of the application for
             1236      certification.]
             1237          (2) Upon request by the division, an applicant shall make available to the division for
             1238      examination:
             1239          (a) a detailed listing of the real estate appraisal reports or file memoranda [for each
             1240      year] for which experience is claimed; and
             1241          (b) a sample selected by the division of appraisal reports that the applicant has prepared
             1242      in the course of the applicant's appraisal practice.
             1243          [(3) The classroom hours required by Subsection (1)(d) shall be provided by:]
             1244          [(a) a college or university;]
             1245          [(b) a community or junior college;]
             1246          [(c) a real estate appraisal or real estate related organization;]
             1247          [(d) a state or federal agency or commission;]
             1248          [(e) a proprietary school;]
             1249          [(f) a provider approved by a state certification and licensing agency; or]
             1250          [(g) the Appraisal Foundation or its boards.]
             1251          (3) (a) The division shall, with the concurrence of the board, make rules in accordance
             1252      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that establish:
             1253          (i) the educational requirements described in Subsection (1)(c); and
             1254          (ii) the experience in real property appraisal described in Subsection (1)(d).
             1255          (b) The educational and experience requirements established under Subsection (3)(a)
             1256      shall meet or exceed the educational requirements and the hourly experience requirements
             1257      adopted by the Appraisal Qualification Board.
             1258          Section 21. Section 61-2g-316 is enacted to read:
             1259          61-2g-316. Surrender of license.
             1260          (1) The division may, by written agreement, accept the voluntary surrender of a license
             1261      issued under this chapter.


             1262          (2) Tender and acceptance of a voluntary surrender of a license under Subsection (1):
             1263          (a) does not prevent the division from pursuing additional action, including
             1264      disciplinary action, that relates to the surrendered license and is authorized by this chapter or by
             1265      rules made under this chapter; and
             1266          (b) terminates all rights and privileges associated with the license.
             1267          (3) A person may restore the rights and privileges described in Subsection (2)(b) only if
             1268      the person reapplies for, and is granted, licensure in accordance with the requirements
             1269      described in this chapter.
             1270          (4) Any documentation relating to the tender and acceptance of a voluntary surrender is
             1271      a public record.
             1272          Section 22. Section 61-2g-501 is amended to read:
             1273           61-2g-501. Enforcement -- Investigation -- Orders -- Hearings.
             1274          (1) (a) The division may investigate the actions of:
             1275          (i) a person registered, licensed, or certified under this chapter;
             1276          (ii) an applicant for registration, licensure, or certification;
             1277          (iii) an applicant for renewal of registration, licensure, or certification; or
             1278          (iv) a person required to be registered, licensed, or certified under this chapter.
             1279          (b) The division may initiate an agency action against a person described in Subsection
             1280      (1)(a) in accordance with Title 63G, Chapter 4, Administrative Procedures Act, to:
             1281          (i) impose disciplinary action;
             1282          (ii) deny issuance to an applicant of:
             1283          (A) an original registration, license, or certification; or
             1284          (B) a renewal of a registration, license, or certification; or
             1285          (iii) issue a cease and desist order as provided in Subsection (3).
             1286          (2) (a) The division may:
             1287          (i) administer an oath or affirmation;
             1288          (ii) subpoena a witness or evidence;
             1289          (iii) take evidence; and


             1290          (iv) require the production of a book, paper, contract, record, document, information,
             1291      or evidence relevant to the investigation described in Subsection (1).
             1292          (b) The division may serve a subpoena by certified mail.
             1293          (c) A failure to respond to a request by the division in an investigation authorized
             1294      under this chapter is considered to be a separate violation of this chapter, including:
             1295          (i) failing to respond to a subpoena as a witness;
             1296          (ii) withholding evidence; or
             1297          (iii) failing to produce a book, paper, contract, document, information, or record.
             1298          (d) (i) If a person is found to have violated this chapter or a rule made under this
             1299      chapter, the person shall pay the costs incurred by the division to copy a book, paper, contract,
             1300      document, information, or record required under this chapter, including the costs incurred to
             1301      copy an electronic book, paper, contract, document, information, or record in a universally
             1302      readable format.
             1303          (ii) If a person fails to pay the costs described in Subsection (2)(d)(i) when due, the
             1304      person's license, certification, or registration is automatically suspended:
             1305          (A) beginning the day on which the payment of costs is due; and
             1306          (B) ending the day on which the costs are paid.
             1307          (3) (a) The director shall issue and serve upon a person an order directing that person to
             1308      cease and desist from an act if:
             1309          (i) the director has reason to believe that the person has been engaging, is about to
             1310      engage, or is engaging in the act constituting a violation of this chapter; and
             1311          (ii) it appears to the director that it would be in the public interest to stop the act.
             1312          (b) Within 10 days after receiving the order, the person upon whom the order is served
             1313      may request a hearing.
             1314          (c) Pending a hearing requested under Subsection (3)(b), a cease and desist order shall
             1315      remain in effect.
             1316          (d) If a request for hearing is made, the division shall follow the procedures and
             1317      requirements of Title 63G, Chapter 4, Administrative Procedures Act.


             1318          (4) (a) After a hearing requested under Subsection (3), if the board and division concur
             1319      that an act of the person violates this chapter, the board, with the concurrence of the division:
             1320          (i) shall issue an order making the cease and desist order permanent; and
             1321          (ii) may impose another disciplinary action under Section 61-2g-502 .
             1322          (b) The director shall commence an action in the name of the Department of
             1323      Commerce and Division of Real Estate, in the district court in the county in which an act
             1324      described in Subsection (3) occurs or where the person resides or carries on business, to enjoin
             1325      and restrain the person from violating this chapter if:
             1326          (i) (A) a hearing is not requested under Subsection (3); and
             1327          (B) the person fails to cease the act described in Subsection (3); or
             1328          (ii) after discontinuing the act described in Subsection (3), the person again
             1329      commences the act.
             1330          (5) A remedy or action provided in this section does not limit, interfere with, or prevent
             1331      the prosecution of another remedy or action, including a criminal proceeding.
             1332          (6) (a) Except as provided in Subsection (6)(b), the division shall commence a
             1333      disciplinary action under this chapter no later than the earlier of the following:
             1334          (i) four years after the day on which the violation is reported to the division; or
             1335          (ii) 10 years after the day on which the violation occurred.
             1336          (b) The division may commence a disciplinary action under this chapter after the time
             1337      period described in Subsection (6)(a) expires if:
             1338          (i) (A) the disciplinary action is in response to a civil or criminal judgment or
             1339      settlement; and
             1340          (B) the division initiates the disciplinary action no later than one year after the day on
             1341      which the judgment is issued or the settlement is final; or
             1342          (ii) the division and the person subject to a disciplinary action enter into a written
             1343      stipulation to extend the time period described in Subsection (6)(a).


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