1     
PROPERTY MANAGER REQUIREMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jordan D. Teuscher

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Utah Real Estate Licensing and Practices Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     removes provisions requiring an individual engaging in property management to
14     hold a real estate license; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          61-2f-102, as last amended by Laws of Utah 2017, Chapter 182
23          61-2f-103, as last amended by Laws of Utah 2022, Chapter 204
24          61-2f-201, as renumbered and amended by Laws of Utah 2010, Chapter 379
25          61-2f-203, as last amended by Laws of Utah 2022, Chapter 204
26          61-2f-204, as last amended by Laws of Utah 2022, Chapter 204
27          61-2f-206, as last amended by Laws of Utah 2022, Chapter 204
28          61-2f-302, as last amended by Laws of Utah 2010, Chapter 184 and renumbered and
29     amended by Laws of Utah 2010, Chapter 379
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 61-2f-102 is amended to read:
33          61-2f-102. Definitions.
34          As used in this chapter:
35          (1) "Associate broker" means an individual who is:
36          (a) employed or engaged as an independent contractor by or on behalf of a principal
37     broker to perform an act described in Subsection [(20)] (19) for valuable consideration; and
38          (b) licensed under this chapter as an associate broker.
39          (2) "Branch broker" means an associate broker who manages a principal broker's
40     branch office under the supervision of the principal broker.
41          (3) "Branch office" means a principal broker's real estate brokerage office that is not
42     the principal broker's main office.
43          (4) "Business day" means a day other than:
44          (a) a Saturday;
45          (b) a Sunday; or
46          (c) a federal or state holiday.
47          (5) "Business opportunity" means the sale, lease, or exchange of any business that
48     includes an interest in real estate.
49          (6) "Commission" means the Real Estate Commission established under this chapter.
50          (7) "Concurrence" means the entities given a concurring role must jointly agree for
51     action to be taken.
52          (8) "Condominium homeowners' association" means the condominium unit owners
53     acting as a group in accordance with declarations and bylaws.
54          (9) (a) "Condominium hotel" means one or more condominium units that are operated
55     as a hotel.
56          (b) "Condominium hotel" does not mean a hotel consisting of condominium units, all
57     of which are owned by a single entity.
58          (10) "Condominium unit" means the same as that term is defined in Section 57-8-3.
59          (11) "Director" means the director of the Division of Real Estate.
60          (12) "Division" means the Division of Real Estate.
61          [(13) "Dual broker" means a principal broker of a real estate sales brokerage who
62     obtains from the division a dual broker license in order to function as the principal broker of a
63     property management company that is a separate entity from the real estate sales brokerage.]
64          [(14)] (13) "Entity" means:
65          (a) a corporation;
66          (b) a partnership;
67          (c) a limited liability company;
68          (d) a company;
69          (e) an association;
70          (f) a joint venture;
71          (g) a business trust;
72          (h) a trust; or
73          (i) any organization similar to an entity described in Subsections [(14)(a)] (13)(a)
74     through (h).
75          [(15)] (14) "Executive director" means the director of the Department of Commerce.
76          [(16)] (15) "Foreclosure rescue" means, for compensation or with the expectation of
77     receiving valuable consideration, to:
78          (a) engage, or offer to engage, in an act that:
79          (i) the person represents will assist a borrower in preventing a foreclosure; and
80          (ii) relates to a transaction involving the transfer of title to residential real property; or
81          (b) as an employee or agent of another person:
82          (i) solicit, or offer that the other person will engage in an act described in Subsection
83     [(16)(a)] (15)(a); or
84          (ii) negotiate terms in relationship to an act described in Subsection [(16)(a)] (15)(a).
85          [(17)] (16) "Loan modification assistance" means, for compensation or with the
86     expectation of receiving valuable consideration, to:
87          (a) act, or offer to act, on behalf of a person to:
88          (i) obtain a loan term of a residential mortgage loan that is different from an existing
89     loan term including:
90          (A) an increase or decrease in an interest rate;
91          (B) a change to the type of interest rate;
92          (C) an increase or decrease in the principal amount of the residential mortgage loan;
93          (D) a change in the number of required period payments;
94          (E) an addition of collateral;
95          (F) a change to, or addition of, a prepayment penalty;
96          (G) an addition of a cosigner; or
97          (H) a change in persons obligated under the existing residential mortgage loan; or
98          (ii) substitute a new residential mortgage loan for an existing residential mortgage loan;
99     or
100          (b) as an employee or agent of another person:
101          (i) solicit, or offer that the other person will engage in an act described in Subsection
102     [(17)(a)] (16)(a); or
103          (ii) negotiate terms in relationship to an act described in Subsection [(17)(a)] (16)(a).
104          [(18)] (17) "Main office" means the address which a principal broker designates with
105     the division as the principal broker's primary brokerage office.
106          [(19)] (18) "Person" means an individual or entity.
107          [(20)] (19) "Principal broker" means an individual who is licensed or required to be
108     licensed as a principal broker under this chapter who:
109          (a) sells or lists for sale real estate, including real estate being sold as part of a
110     foreclosure rescue, or a business opportunity with the expectation of receiving valuable
111     consideration;
112          (b) buys, exchanges, or auctions real estate, an option on real estate, a business
113     opportunity, or an improvement on real estate with the expectation of receiving valuable
114     consideration;
115          (c) advertises, offers, attempts, or otherwise holds the individual out to be engaged in
116     the business described in Subsection [(20)(a)] (19)(a) or (b);
117          (d) is employed by or on behalf of the owner of real estate or by a prospective
118     purchaser of real estate and performs an act described in Subsection [(20)(a)] (19)(a), whether
119     the individual's compensation is at a stated salary, a commission basis, upon a salary and
120     commission basis, or otherwise;
121          (e) with the expectation of receiving valuable consideration, manages property owned
122     by another person;
123          (f) advertises or otherwise holds the individual out to be engaged in property
124     management;
125          (g) with the expectation of receiving valuable consideration, assists or directs in the
126     procurement of prospects for or the negotiation of a transaction listed in Subsections [(20)(a)]
127     (19)(a) and (e);
128          (h) except for a mortgage lender, title insurance producer, or an employee of a
129     mortgage lender or title insurance producer, assists or directs in the closing of a real estate
130     transaction with the expectation of receiving valuable consideration;
131          (i) engages in foreclosure rescue; or
132          (j) advertises, offers, attempts, or otherwise holds the person out as being engaged in
133     foreclosure rescue.
134          [(21)] (20) (a) "Property management" means engaging in, with the expectation of
135     receiving valuable consideration, the management of real estate owned by another person or
136     advertising or otherwise claiming to be engaged in property management by:
137          (i) advertising for, arranging, negotiating, offering, or otherwise attempting or
138     participating in a transaction calculated to secure the rental or leasing of real estate;
139          (ii) collecting, agreeing, offering, or otherwise attempting to collect rent for the real
140     estate and accounting for and disbursing the money collected; or
141          (iii) authorizing expenditures for repairs to the real estate.
142          (b) "Property management" does not include:
143          (i) hotel or motel management;
144          (ii) rental of tourist accommodations, including hotels, motels, tourist homes,
145     condominiums, condominium hotels, mobile home park accommodations, campgrounds, or
146     similar public accommodations for a period of less than 30 consecutive days, and the
147     management activities associated with these rentals; or
148          (iii) the leasing or management of surface or subsurface minerals or oil and gas
149     interests, if the leasing or management is separate from a sale or lease of the surface estate.
150          [(22) "Property management sales agent" means a sales agent who:]
151          [(a) is affiliated with a dual broker through the dual broker's property management
152     company; and]
153          [(b) is designated by the dual broker as a property management sales agent.]
154          [(23)] (21) "Property manager" means an individual who is licensed or required to be
155     licensed as a property manager under this chapter who:
156          (a) with the expectation of receiving valuable consideration, manages property owned
157     by another person; or
158          (b) advertises or otherwise holds the individual out to be engaged in property
159     management.
160          (22) "Real estate" includes leaseholds and business opportunities involving real
161     property.
162          [(24)] (23) (a) "Regular salaried employee" means an individual who performs a
163     service for wages or other remuneration, whose employer withholds federal employment taxes
164     under a contract of hire, written or oral, express or implied.
165          (b) "Regular salaried employee" does not include an individual who performs services
166     on a project-by-project basis or on a commission basis.
167          [(25)] (24) "Reinstatement" means restoring a license that has expired or has been
168     suspended.
169          [(26)] (25) "Reissuance" means the process by which a licensee may obtain a license
170     following revocation of the license.
171          [(27)] (26) "Renewal" means extending a license for an additional licensing period on
172     or before the date the license expires.
173          [(28)] (27) "Sales agent" means an individual who is:
174          (a) affiliated with a principal broker, either as an independent contractor or an
175     employee as provided in Section 61-2f-303, to perform for valuable consideration an act
176     described in Subsection [(20)] (19); and
177          (b) licensed under this chapter as a sales agent.
178          Section 2. Section 61-2f-103 is amended to read:
179          61-2f-103. Real Estate Commission.
180          (1) There is created within the division a Real Estate Commission.
181          (2) The commission shall:
182          (a) subject to concurrence by the division and in accordance with Title 63G, Chapter 3,
183     Utah Administrative Rulemaking Act, make rules for the administration of this chapter that are
184     not inconsistent with this chapter, including:
185          (i) licensing of:
186          (A) a principal broker;
187          (B) an associate broker; [and]
188          (C) a sales agent; and
189          (D) a property manager;
190          (ii) registration of:
191          (A) an entity;
192          (B) an assumed name under which a person conducts business;
193          (C) a branch office; and
194          (D) a property management company;
195          (iii) prelicensing and postlicensing education curricula;
196          (iv) examination procedures;
197          (v) the certification and conduct of:
198          (A) a real estate school;
199          (B) a course provider; or
200          (C) an instructor;
201          (vi) proper handling of money received by a licensee under this chapter;
202          (vii) brokerage office procedures and recordkeeping requirements;
203          (viii) property management, including rules necessary to create separate regulations for
204     property management activities;
205          (ix) standards of conduct for a licensee under this chapter;
206          (x) if the commission, with the concurrence of the division, determines necessary, a
207     rule as provided in Subsection 61-2f-306(3) regarding a legal form;
208          (xi) the qualification and designation of an acting principal broker in the event a
209     principal broker dies, is incapacitated, or is unable to perform the duties of a principal broker,
210     as described in Section 61-2f-202; and
211          (xii) giving or paying an inducement gift or a closing gift to a buyer or seller in a real
212     property transaction;
213          (b) establish, with the concurrence of the division, a fee provided for in this chapter,
214     except a fee imposed under Part 5, Real Estate Education, Research, and Recovery Fund Act;
215          (c) conduct an administrative hearing not delegated by the commission to an
216     administrative law judge or the division relating to the:
217          (i) licensing of an applicant;
218          (ii) conduct of a licensee;
219          (iii) the certification or conduct of a real estate school, course provider, or instructor
220     regulated under this chapter; or
221          (iv) violation of this chapter by any person;
222          (d) with the concurrence of the director, impose a sanction as provided in Section
223     61-2f-404;
224          (e) advise the director on the administration and enforcement of a matter affecting the
225     division and the real estate sales and property management industries;
226          (f) advise the director on matters affecting the division budget;
227          (g) advise and assist the director in conducting real estate seminars; and
228          (h) perform other duties as provided by this chapter.
229          (3) (a) Except as provided in Subsection (3)(b), a state entity may not, without the
230     concurrence of the commission, make a rule that changes the rights, duties, or obligations of
231     buyers, sellers, or persons licensed under this chapter in relation to a real estate transaction
232     between private parties.
233          (b) Subsection (3)(a) does not apply to a rule made:
234          (i) under Title 31A, Insurance Code, or Title 7, Financial Institutions Act; or
235          (ii) by the Department of Commerce or any division or other rulemaking body within
236     the Department of Commerce.
237          (4) (a) The commission shall be comprised of five members appointed by the governor
238     and approved by the Senate in accordance with Title 63G, Chapter 24, Part 2, Vacancies.
239          (b) Four of the commission members shall:
240          (i) have at least five years' experience in the real estate business; and
241          (ii) hold an active principal broker, associate broker, or sales agent license.
242          (c) One commission member shall be a member of the general public.
243          (d) The governor may not appoint a commission member described in Subsection
244     (4)(b) who, at the time of appointment, resides in the same county in the state as another
245     commission member.
246          (e) At least one commission member described in Subsection (4)(b) shall at the time of
247     an appointment reside in a county that is not a county of the first or second class.
248          (5) (a) Except as required by Subsection (5)(b), as terms of current commission
249     members expire, the governor shall appoint each new member or reappointed member to a
250     four-year term ending June 30.
251          (b) Notwithstanding the requirements of Subsection (5)(a), the governor shall, at the
252     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
253     commission members are staggered so that approximately half of the commission is appointed
254     every two years.
255          (c) Upon the expiration of the term of a member of the commission, the member of the
256     commission shall continue to hold office until a successor is appointed and qualified.
257          (d) A commission member may not serve more than two consecutive terms.
258          (e) Members of the commission shall annually select one member to serve as chair.
259          (6) When a vacancy occurs in the membership for any reason, the governor, with the
260     advice and consent of the Senate, shall appoint a replacement for the unexpired term.
261          (7) A member may not receive compensation or benefits for the member's service, but
262     may receive per diem and travel expenses in accordance with:
263          (a) Section 63A-3-106;
264          (b) Section 63A-3-107; and
265          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
266     63A-3-107.
267          (8) (a) The commission shall meet at least monthly.
268          (b) The director may call additional meetings:
269          (i) at the director's discretion;
270          (ii) upon the request of the chair; or
271          (iii) upon the written request of three or more commission members.
272          (9) Three members of the commission constitute a quorum for the transaction of
273     business.
274          (10) A member of the commission shall comply with the conflict of interest provisions
275     described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.
276          Section 3. Section 61-2f-201 is amended to read:
277          61-2f-201. License required.
278          (1) Unless a person is licensed under this chapter, it is unlawful for the person to do the
279     following with respect to real estate located in this state:
280          (a) engage in the business of a principal broker, associate broker, or sales agent;
281          (b) act in the capacity of a principal broker, associate broker, or sales agent;
282          (c) advertise or assume to act as a principal broker, associate broker, or a sales agent.
283          (2) Except as provided in Section 61-2f-202, an individual is required to be licensed as
284     a principal broker, associate broker, or a sales agent if the individual performs, offers to
285     perform, or attempts to perform one act for valuable consideration of:
286          (a) buying, selling, [leasing, managing,] or exchanging real estate for another person;
287     or
288          (b) offering for another person to buy, sell, [lease, manage,] or exchange real estate.
289          (3) Except as provided in Section 61-2f-202, unless an individual is licensed as a
290     property manager, an individual may not, for consideration, perform, offer to perform, or
291     attempt to perform:
292          (a) leasing or managing real estate for another person; or
293          (b) offer for another person to lease or manage real estate.
294          Section 4. Section 61-2f-203 is amended to read:
295          61-2f-203. Licensing requirements.
296          (1) (a) (i) The division shall determine whether an applicant with a criminal history
297     qualifies for licensure.
298          (ii) If the division, acting under Subsection (1)(a)(i), denies or restricts a license or
299     places a license on probation, the applicant may petition the commission for de novo review of
300     the application.
301          (b) Except as provided in Subsection (6), the commission shall determine all other
302     qualifications and requirements of an applicant for:
303          (i) a principal broker license;
304          (ii) an associate broker license; [or]
305          (iii) a sales agent license[.]; or
306          (iv) a property manager license.
307          (c) The division, with the concurrence of the commission, shall require and pass upon
308     proof necessary to determine the honesty, integrity, truthfulness, reputation, and competency of
309     each applicant for an initial license or for renewal of an existing license.
310          (d) (i) (A) Except as provided in Subsection (1)(d)(i)(B), the division, with the
311     concurrence of the commission, shall require an applicant for a sales agent license to complete
312     a division-approved educational program consisting of not less than 120 hours, as designated
313     by rule the commission makes in accordance with Title 63G, Chapter 3, Utah Administrative
314     Rulemaking Act, with the concurrence of the division.
315          (B) If on the day on which an applicant for a sales agent license applies for the license
316     the applicant is licensed as a real estate sales agent in another state, the division may require the
317     applicant to complete a division-approved, state-specific educational program consisting of the
318     number of hours designated by rule the commission makes in accordance with Title 63G,
319     Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of the division.
320          (ii) (A) Except as provided in Subsection (1)(d)(ii)(B), the division, with the
321     concurrence of the commission, shall require an applicant for an associate broker or a principal
322     broker license to complete a division-approved educational program consisting of not less than
323     120 hours, as designated by rule the commission makes in accordance with Title 63G, Chapter
324     3, Utah Administrative Rulemaking Act, with the concurrence of the division.
325          (B) If on the day on which an applicant for an associate broker or a principal broker
326     license applies for the license the applicant is licensed as a real estate broker in another state,
327     the division may require the applicant to complete a division-approved, state-specific
328     educational program consisting of the number of hours designated by rule the commission
329     makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, with the
330     concurrence of the division.
331          (iii) Subject to Subsection (5):
332          (A) except as provided in Subsection (1)(d)(iii)(B), the division, with the concurrence
333     of the commission, shall require an applicant for a property manager license to complete a
334     division-approved educational program consisting of not less than 24 hours, as designated by
335     rule the commission makes in accordance with Title 63G, Chapter 3, Utah Administrative
336     Rulemaking Act, with the concurrence of the division; and
337          (B) if on the day on which an applicant for a property manager license applies for the
338     license the applicant is licensed as a property manager in another state, the division may require
339     the applicant to complete a division-approved, state-specific educational program consisting of
340     the number of hours designated by rule the commission makes in accordance with Title 63G,
341     Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of the division.
342          [(iii)] (iv) An hour required by this section means 50 minutes of instruction in each 60
343     minutes.
344          [(iv)] (v) The maximum number of program hours available to an individual is eight
345     hours per day.
346          (e) (i) Except as provided in Subsection (1)(e)(ii), the division, with the concurrence of
347     the commission, shall require an applicant to pass an examination approved by the commission
348     covering:
349          (A) the fundamentals of the English language;
350          (B) the fundamentals of arithmetic;
351          (C) the fundamentals of bookkeeping;
352          (D) the fundamentals of real estate principles and practices;
353          (E) this chapter;
354          (F) the rules established by the commission with the concurrence of the division; and
355          (G) any other aspect of Utah real estate license law considered appropriate.
356          (ii) If on the day on which an applicant applies for a license the applicant is licensed as
357     a real estate broker or a sales agent in another state, the division may, with the concurrence of
358     the commission, require the applicant to pass a division-approved, state-specific examination
359     rather than the examination required under Subsection (1)(e)(i).
360          (iii) The division, with the concurrence of the commission, may modify the length and
361     material of an examination for a property manager license under this chapter.
362          (iv) An examination for a property manager license shall:
363          (A) be proportionate to the 24 hours of education required under Subsection (1)(d)(iii);
364     and
365          (B) cover aspects of Utah real estate law considered appropriate and relevant to
366     property management.
367          (f) (i) Three years' full-time experience as a sales agent or its equivalent is required
368     before an applicant may apply for, and secure a principal broker or associate broker license in
369     this state.
370          (ii) The commission shall establish by rule made in accordance with Title 63G,
371     Chapter 3, Utah Administrative Rulemaking Act, subject to concurrence by the division, the
372     criteria by which the commission will accept experience or special education in similar fields
373     of business in lieu of the three years' experience.
374          (2) (a) The division, with the concurrence of the commission, may require an applicant
375     to furnish a sworn statement setting forth evidence satisfactory to the division of the applicant's
376     reputation and competency as set forth by rule.
377          (b) The division shall require an applicant to provide the applicant's social security
378     number, which is a private record under Subsection 63G-2-302(1)(i).
379          (3) (a) An individual who is not a resident of this state may be licensed in this state if
380     the person complies with this chapter.
381          (b) An individual who is not a resident of this state may be licensed as an associate
382     broker or sales agent in this state by:
383          (i) complying with this chapter; and
384          (ii) being employed or engaged as an independent contractor by or on behalf of a
385     principal broker who is licensed in this state, regardless of whether the principal broker is a
386     resident of this state.
387          (4) The division, with the concurrence of the commission, may enter into a reciprocal
388     licensing agreement with another jurisdiction for the licensure of a principal broker, an
389     associate broker, or a sales agent, if the jurisdiction's requirements and standards for the license
390     are substantially similar to those of this state.
391          (5) (a) The division and commission shall treat an application to be relicensed of an
392     applicant whose real estate license is revoked as an original application.
393          (b) In the case of an applicant for a new license as a principal broker or associate
394     broker, the applicant is not entitled to credit for experience gained before the revocation of a
395     real estate license.
396          (6) (a) Notwithstanding Subsection (1)(b), the commission may delegate to the division
397     the authority to:
398          (i) review a class or category of applications for initial or renewed licenses;
399          (ii) determine whether an applicant meets the licensing criteria in Subsection (1); and
400          (iii) approve or deny a license application without concurrence by the commission.
401          (b) (i) If the commission delegates to the division the authority to approve or deny an
402     application without concurrence by the commission and the division denies an application for
403     licensure, the applicant who is denied licensure may petition the commission for de novo
404     review of the application.
405          (ii) An applicant who is denied licensure pursuant to this Subsection (6) may seek
406     agency review by the executive director only after the commission has reviewed the division's
407     denial of the applicant's application.
408          (7) An individual with an active broker, associate broker, or sales agent license is
409     exempt from:
410          (a) the education requirement described in Subsection (1)(d)(iii); and
411          (b) an exam required for a property manager license under Subsection (1)(e).
412          Section 5. Section 61-2f-204 is amended to read:
413          61-2f-204. Licensing fees and procedures -- Renewal fees and procedures.
414          (1) (a) Upon filing an application for an examination for a license under this chapter,
415     the applicant shall pay a nonrefundable fee established in accordance with Section 63J-1-504
416     for admission to the examination.
417          (b) An applicant for a principal broker, associate broker, [or] sales agent, or property
418     manager license shall pay a nonrefundable fee as determined by the commission with the
419     concurrence of the division under Section 63J-1-504 for issuance of an initial license or license
420     renewal.
421          (c) A license issued under this Subsection (1) shall be issued for a period of not less
422     than two years as the division determines with the concurrence of the commission.
423          (d) (i) Each of the following applicants shall comply with this Subsection (1)(d):
424          (A) a new sales agent applicant;
425          (B) a principal broker applicant; [and]
426          (C) an associate broker applicant; and
427          (D) a property manager applicant.
428          (ii) An applicant described in this Subsection (1)(d) shall at the time the licensee files
429     an application:
430          (A) submit to the division fingerprint cards in a form acceptable to the Department of
431     Public Safety;
432          (B) submit to the division a signed waiver in accordance with Subsection
433     53-10-108(4), acknowledging the registration of the applicant's fingerprints in the Federal
434     Bureau of Investigation Next Generation Identification System's Rap Back Service beginning
435     January 1, 2020;
436          (C) consent to a criminal background check by the Utah Bureau of Criminal
437     Identification and the Federal Bureau of Investigation; and
438          (D) pay the fee the division establishes in accordance with Subsection (1)(d)(vi).
439          (iii) The Bureau of Criminal Identification shall:
440          (A) check the fingerprints an applicant submits under Subsection (1)(d)(ii) against the
441     applicable state, regional, and national criminal records databases, including, beginning
442     January 1, 2020, the Federal Bureau of Investigation Next Generation Identification System;
443          (B) report the results of the background check to the division;
444          (C) maintain a separate file of fingerprints that applicants submit under Subsection
445     (1)(d) for search by future submissions to the local and regional criminal records databases,
446     including latent prints;
447          (D) request that beginning January 1, 2020, the fingerprints be retained in the Federal
448     Bureau of Investigation Next Generation Identification System's Rap Back Service for search
449     by future submissions to national criminal records databases, including the Next Generation
450     Identification System and latent prints; and
451          (E) ensure that the division only receives notifications for an individual with whom the
452     division maintains permission to receive notifications.
453          (iv) (A) The division shall assess an applicant who submits fingerprints under
454     Subsection (1)(d) or (2)(f) a fee in an amount that the division sets in accordance with Section
455     63J-1-504 for services that the division and the Bureau of Criminal Identification or another
456     authorized agency provide under Subsection (1)(d) or (2)(f).
457          (B) The Bureau of Criminal Identification may collect from the division money for
458     services provided under this section.
459          (v) Money paid to the division by an applicant for the cost of the criminal background
460     check is nonlapsing.
461          (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
462     and with the concurrence of the division, the commission may make rules for the
463     administration of this Subsection (1)(d) and Subsection (2)(f) regarding criminal background
464     checks with ongoing monitoring.
465          (e) (i) A license issued under Subsection (1)(d) is conditional, pending completion of
466     the criminal background check.
467          (ii) If a criminal background check discloses that an applicant fails to accurately
468     disclose a criminal history, the division:
469          (A) shall review the application; and
470          (B) in accordance with rules made by the division pursuant to Title 63G, Chapter 3,
471     Utah Administrative Rulemaking Act, may:
472          (I) place a condition on a license;
473          (II) place a restriction on a license;
474          (III) revoke a license; or
475          (IV) refer the application to the commission for a decision.
476          (iii) (A) A person whose conditional license is conditioned, restricted, or revoked
477     under Subsection (1)(e)(ii) may have a hearing after the action is taken to challenge the action.
478          (B) The division shall conduct a hearing described in Subsection (1)(e)(iii)(A) in
479     accordance with Title 63G, Chapter 4, Administrative Procedures Act.
480          (iv) The director shall designate one of the following to act as the presiding officer in a
481     hearing described in Subsection (1)(e)(iii)(A):
482          (A) the division; or
483          (B) the division with the concurrence of the commission.
484          (v) The presiding officer shall decide whether relief from an action under this
485     Subsection (1)(e) is granted.
486          (vi) If a license is revoked or a revocation under this Subsection (1)(e) is upheld after a
487     hearing, the individual may not apply for a new license until at least 12 months after the day on
488     which the license is revoked.
489          (2) (a) (i) A license expires if it is not renewed on or before the expiration date of the
490     license.
491          (ii) As a condition of renewal, an active licensee shall demonstrate competence by
492     completing 18 hours of continuing education within a two-year renewal period subject to rules
493     made by the commission, with the concurrence of the division.
494          (iii) In making a rule described in Subsection (2)(c)(ii), the division and commission
495     shall consider:
496          (A) evaluating continuing education on the basis of competency, rather than course
497     time;
498          (B) allowing completion of courses in a significant variety of topic areas that the
499     division and commission determine are valuable in assisting an individual licensed under this
500     chapter to increase the individual's competency; and
501          (C) allowing completion of courses that will increase a licensee's professional
502     competency in the area of practice of the licensee.
503          (iv) The division may award credit to a licensee for a continuing education requirement
504     of this Subsection (2)(a) for a reasonable period of time upon a finding of reasonable cause,
505     including:
506          (A) military service; or
507          (B) if an individual is elected or appointed to government service, the individual's
508     government service during which the individual spends a substantial time addressing real estate
509     issues subject to conditions established by rule made in accordance with Title 63G, Chapter 3,
510     Utah Administrative Rulemaking Act.
511          (b) For a period of 30 days after the day on which a license expires, the license may be
512     reinstated:
513          (i) if the applicant's license was inactive on the day on which the applicant's license
514     expired, upon payment of a renewal fee and a late fee determined by the commission with the
515     concurrence of the division under Section 63J-1-504; or
516          (ii) if the applicant's license was active on the day on which the applicant's license
517     expired, upon payment of a renewal fee and a late fee determined by the commission with the
518     concurrence of the division under Section 63J-1-504, and providing proof acceptable to the
519     division and the commission of the licensee having:
520          (A) completed the hours of education required by Subsection (2)(a); or
521          (B) demonstrated competence as required under Subsection (2)(a).
522          (c) After the 30-day period described in Subsection (2)(b), and until one year after the
523     day on which an active or inactive license expires, the license may be reinstated by:
524          (i) paying a renewal fee and a late fee determined by the commission with the
525     concurrence of the division under Section 63J-1-504; and
526          (ii) providing proof acceptable to the division and the commission of the licensee
527     having:
528          (A) completed the hours of education required by Subsection (2)(a); or
529          (B) demonstrated competence as required under Subsection (2)(a).
530          (d) The division shall relicense a person who does not renew that person's license
531     within one year as prescribed for an original application.
532          (e) Notwithstanding Subsection (2)(a), the division may extend the term of a license
533     that would expire under Subsection (2)(a) except for the extension if:
534          (i) (A) the person complies with the requirements of this section to renew the license;
535     and
536          (B) the renewal application remains pending at the time of the extension; or
537          (ii) at the time of the extension, there is pending a disciplinary action under this
538     chapter.
539          (f) Beginning January 1, 2020, each applicant for renewal or reinstatement of a license
540     to practice as a sales agent, principal broker, [or] associate broker or, beginning on May 1,
541     2024, a property manager, who is not already subject to ongoing monitoring of the individual's
542     criminal history shall, at the time the application for renewal or reinstatement is filed:
543          (i) submit fingerprint cards in a form acceptable to the Department of Public Safety;
544          (ii) submit to the division a signed waiver in accordance with Subsection 53-10-108(4),
545     acknowledging the registration of the applicant's fingerprints in the Federal Bureau of
546     Investigation Next Generation Identification System's Rap Back Service;
547          (iii) consent to a fingerprint background check by the Utah Bureau of Criminal
548     Identification and the Federal Bureau of Investigation; and
549          (iv) pay the fee the division establishes in accordance with Subsection (1)(d)(iv).
550          (3) (a) As a condition for the activation of an inactive license that was in an inactive
551     status at the time of the licensee's most recent renewal, the licensee shall supply the division
552     with proof of:
553          (i) successful completion of the respective sales agent or principal broker licensing
554     examination within six months before the day on which the licensee applies to activate the
555     license; or
556          (ii) the successful completion of the hours of continuing education that the licensee
557     would have been required to complete under Subsection (2)(a) if the license had been on active
558     status at the time of the licensee's most recent renewal.
559          (b) The commission may, in accordance with Title 63G, Chapter 3, Utah
560     Administrative Rulemaking Act, subject to concurrence by the division, establish by rule:
561          (i) the nature or type of continuing education required for reactivation of a license; and
562          (ii) how long before reactivation the continuing education must be completed.
563          Section 6. Section 61-2f-206 is amended to read:
564          61-2f-206. Registration of person or branch office -- Certification of education
565     providers and courses -- Specialized licenses.
566          (1) (a) A person may not engage in an activity described in Section 61-2f-201, unless
567     the person is registered with the division.
568          (b) To register with the division under this Subsection (1), a person shall submit to the
569     division:
570          (i) an application in a form required by the division;
571          (ii) subject to Subsection (1)(d), evidence of an affiliation with a principal broker;
572          (iii) evidence that the person is registered and in good standing with the Division of
573     Corporations and Commercial Code; and
574          (iv) a registration fee established by the commission with the concurrence of the
575     division under Section 63J-1-504.
576          (c) The division may terminate a person's registration if:
577          (i) the person's registration with the Division of Corporations and Commercial Code
578     has been expired for at least three years; and
579          (ii) the person's license with the division has been inactive for at least three years.
580          (d) A person licensed as a property manager is not required to affiliate with a principal
581     broker.
582          (2) (a) A principal broker shall register with the division each of the principal broker's
583     branch offices.
584          (b) To register a branch office with the division under this Subsection (2), a principal
585     broker shall submit to the division:
586          (i) an application in a form required by the division; and
587          (ii) a registration fee established by the commission with the concurrence of the
588     division under Section 63J-1-504.
589          (3) (a) In accordance with rules made by the commission with the concurrence of the
590     division and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
591     the division shall certify:
592          (i) a real estate school;
593          (ii) a course provider; or
594          (iii) an instructor.
595          (b) In accordance with rules made by the commission in accordance with Title 63G,
596     Chapter 3, Utah Administrative Rulemaking Act, subject to concurrence by the division, the
597     division shall certify a continuing education course that is required under this chapter.
598          (4) Except as provided under this chapter or by rule the commission makes in
599     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, a principal broker
600     may not be responsible for more than one registered entity at the same time.
601          (5) A principal broker:
602          (a) shall exercise active and reasonable supervision of the principal broker's main
603     office in accordance with this chapter and rules the commission makes in accordance with Title
604     63G, Chapter 3, Utah Administrative Rulemaking Act; and
605          (b) may supervise a branch office affiliated with the principal broker at the same time
606     the principal broker exercises the supervision required under Subsection (5)(a).
607          (6) (a) A principal broker may designate a branch broker to supervise a branch office
608     affiliated with the principal broker.
609          (b) A branch broker shall exercise active and reasonable supervision, in accordance
610     with this chapter and rules the commission makes in accordance with Title 63G, Chapter 3,
611     Utah Administrative Rulemaking Act, of each branch office the principal broker designates the
612     branch broker to supervise.
613          [(7) (a) In addition to issuing a principal broker license, associate broker license, or
614     sales agent license authorizing the performance of an act set forth in Section 61-2f-201, the
615     division may issue a specialized sales license or specialized property management license with
616     the scope of practice limited to the specialty.]
617          [(b) An individual may hold a specialized license in addition to a license as a principal
618     broker, associate broker, or a sales agent.]
619          [(c) A sales agent who is affiliated with a dual broker may act as a property
620     management sales agent if:]
621          [(i) the dual broker designates the sales agent as a property management sales agent;
622     and]
623          [(ii) the sales agent pays to the division a property management sales agent designation
624     fee in an amount determined by the division in accordance with Section 63J-1-504.]
625          [(d) A property management sales agent may simultaneously provide both property
626     management services and real estate sales services under the supervision of a dual broker as
627     provided by the commission with the concurrence of the division by rule made in accordance
628     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.]
629          [(8) The commission may determine, by rule made in accordance with Title 63G,
630     Chapter 3, Utah Administrative Rulemaking Act, subject to concurrence by the division,
631     licensing requirements related to this section for a principal broker, associate broker, sales
632     agent, dual broker, property management sales agent, or for a specialized license described in
633     Subsection (7), including:]
634          [(a) prelicensing and postlicensing education requirements;]
635          [(b) examination requirements;]
636          [(c) affiliation with real estate brokerages or property management companies;]
637          [(d) property management sales agent:]
638          [(i) designation procedures;]
639          [(ii) allowable scope of practice; and]
640          [(iii) division fees;]
641          [(e) what constitutes active and reasonable supervision for:]
642          [(i) a principal broker when supervising a branch broker or sales agent; and]
643          [(ii) a branch broker when supervising a sales agent; and]
644          [(f) other licensing procedures.]
645          Section 7. Section 61-2f-302 is amended to read:
646          61-2f-302. Affiliation with a principal broker.
647          (1) (a) [An] Subject to Subsection (1)(b), an individual who is not a principal broker
648     may not engage in an act described in Section 61-2f-201 unless the individual is affiliated with
649     a principal broker as:
650          [(a)] (i) an associate broker; or
651          [(b)] (ii) a sales agent.
652          (b) The division may not require an individual licensed as a property manager under
653     Section 61-2f-201 to affiliate with a principal broker.
654          (2) (a) An inactive associate broker or sales agent may not conduct a real estate
655     transaction until the inactive associate broker or sales agent becomes affiliated with a principal
656     broker and submits the required documentation to the division.
657          (b) An inactive principal broker may not conduct a real estate transaction until the
658     principal broker's license is activated with the division.
659          (3) A sales agent or associate broker may not affiliate with more than one principal
660     broker at the same time.
661          (4) An individual may not be a principal broker of an entity and a sales agent or
662     associate broker for a different entity at the same time.
663          (5) An owner, purchaser, lessor, or lessee who engages the services of a principal
664     broker may designate which sales agents or associate brokers affiliated with that principal
665     broker will also represent that owner, purchaser, lessor, or lessee in the purchase, sale, lease, or
666     exchange of real estate, or in exercising an option relating to real estate.
667          Section 8. Effective date.
668          This bill takes effect on May 1, 2024.