Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 147 First Substitute (2020GS)

Sponsor

Rep. Musselman, C.R.

Final action

Governor Signed 3/24/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• changes certain filing fees;
• amends costs related to an on-site inspection regarding an application for registration of subdivided lands;
• amends the renewal fee for the registration of subdivided lands;
• makes a person subject to an occupational or professional regulation of Title 61, Securities Division - Real Estate Division strictly liable for each violation under the title;
• amends provisions related to prelicensing education and continuing education for a person transacting the business of residential mortgage loans;
• amends provisions related to a criminal background check for an individual applying for a license to transact the business of residential mortgage loans;
• amends provisions regarding prohibited conduct for an individual licensed under Title 61:
• Chapter 2c, Utah Residential Mortgage Practices and Licensing;
• Chapter 2f, Real Estate Licensing and Practices Act; or
• Chapter 2g, Real Estate Appraiser Licensing and Certification Act;
• amends provisions regarding the removal of an appraiser from an appraiser management company's appraiser panel;
• amends provisions regarding the issuance and display of a license issued under the Real Estate Licensing and Practices Act;

Every vote on this bill

Bill text

DIVISION OF REAL ESTATE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Calvin R. Musselman
Senate Sponsor: 
 Kirk A. Cullimore
LONG TITLE
General Description:
This bill amends provisions of Title 61, Securities Division - Real Estate Division.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ changes certain filing fees;
▸ amends costs related to an on-site inspection regarding an application for
registration of subdivided lands;
▸ amends the renewal fee for the registration of subdivided lands;
▸ makes a person subject to an occupational or professional regulation of Title 61,
Securities Division - Real Estate Division strictly liable for each violation under the
title;
▸ amends provisions related to prelicensing education and continuing education for a
person transacting the business of residential mortgage loans;
▸ amends provisions related to a criminal background check for an individual
applying for a license to transact the business of residential mortgage loans;
▸ amends provisions regarding prohibited conduct for an individual licensed under
Title 61:
• Chapter 2c, Utah Residential Mortgage Practices and Licensing;
• Chapter 2f, Real Estate Licensing and Practices Act; or
• Chapter 2g, Real Estate Appraiser Licensing and Certification Act;
▸ amends provisions regarding the removal of an appraiser from an appraiser
management company's appraiser panel;
▸ amends provisions regarding the issuance and display of a license issued under the
Real Estate Licensing and Practices Act;
▸ amends the amount of time following certain violations in which the Division of
Real Estate may commence a disciplinary action;
▸ amends provision related to an appraiser trainee signing an appraisal report; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
57-11-4
, as last amended by Laws of Utah 2013, Chapter 292
57-11-6
, as last amended by Laws of Utah 1990, Chapter 199
57-11-10
, as last amended by Laws of Utah 2008, Chapter 382
61-2-203
, as last amended by Laws of Utah 2019, Chapter 337
61-2c-102
, as last amended by Laws of Utah 2018, Chapter 55
61-2c-202
, as last amended by Laws of Utah 2015, Chapter 262
61-2c-204.1
, as last amended by Laws of Utah 2017, Chapter 182
61-2c-301
, as last amended by Laws of Utah 2017, Chapter 182
61-2e-306
, as last amended by Laws of Utah 2016, Chapter 384
61-2f-205
, as last amended by Laws of Utah 2014, Chapter 350
61-2f-401
, as last amended by Laws of Utah 2019, Chapters 337 and 475
61-2f-402
, as last amended by Laws of Utah 2017, Chapter 182
61-2g-401
, as renumbered and amended by Laws of Utah 2011, Chapter 289
61-2g-405
, as renumbered and amended by Laws of Utah 2011, Chapter 289
61-2g-502
, as last amended by Laws of Utah 2016, Chapter 384
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
57-11-4
 is amended to read:
57-11-4.
Exemptions.
(1) Unless the method of disposition is adopted for the purpose of evasion of this
chapter or the federal act, this chapter does not apply to an offer or disposition of an interest in
land:
(a) by a purchaser of subdivided lands for the person's own account in a single or
isolated transaction;
(b) (i) on a unit of which there is a residential, commercial, or industrial building; or
(ii) on a unit of which there is a legal obligation on the part of the seller to complete
construction of a residential, commercial, or industrial building within two years from date of
disposition;
(c) unless a person who acquires land for one of the following purposes sells that land
to one or more individuals as unimproved lots with no legal obligation on the part of the seller
to construct a residential, commercial, or industrial building on that lot within two years from
the date of disposition:
(i) if the person acquires an interest in the land for use in the business of constructing
residential, commercial, or industrial buildings; or
(ii) if the person acquires the type of land described in Subsection (1)(c)(i) for the
purpose of disposition to a person engaged in the business of constructing residential,
commercial, or industrial buildings;
(d) pursuant to court order;
(e) by a government or government agency;
(f) (i) if the interest lies within the boundaries of a city or a county which:
(A) has a planning and zoning board using at least one professional planner;
(B) enacts ordinances that require approval of planning, zoning, and plats, including
the approval of plans for streets, culinary water, sanitary sewer, and flood control; and
(C) will have the improvements described in Subsection (1)(f)(i)(B) plus telephone and
electricity; and
(ii) if at the time of the offer or disposition the subdivider furnishes satisfactory
assurance of completion of the improvements described in Subsection (1)(f)(i)(C);
(g) in an industrial park;
(h) as cemetery lots; or
(i) if the interest is offered as part of a camp resort as defined in Section 
57-19-2
 or a
timeshare development as defined in Section 
57-19-2
.
(2) Unless the method of disposition is adopted for the purpose of evasion of this
chapter or the provisions of the federal act, this chapter, except as specifically designated, does
not apply to an offer or disposition of:
(a) indebtedness secured by a mortgage or deed of trust on real estate;
(b) a security or unit of interest issued by a real estate investment trust regulated under
any state or federal statute;
(c) subject to Subsection (5), subdivided lands registered under the federal act and
which the division finds to be in the public interest to exempt from the registration
requirements of this chapter;
(d) a security currently registered with the Division of Securities; or
(e) an interest in oil, gas, or other minerals or a royalty interest in these assets if the
offer or disposition of the interest is regulated as a security by the federal government or by the
Division of Securities.
(3) (a) Notwithstanding the exemptions in Subsections (1) and (2), a person making an
offer or disposition of an interest in land that is located in Utah shall apply to the division for
an exemption before the offer or disposition is made if:
(i) the person is representing, in connection with the offer or disposition, the
availability of culinary water service to or on the subdivided land; and
(ii) the culinary water service is provided by a water corporation as defined in Section
54-2-1
.
(b) A subdivider seeking to qualify under [
this
] 
the
 exemption 
described in Subsection
(3)(a)
 shall file with the division a filing fee of [
$50
] 
$100
 and an application containing:
(i) information [
required by
] the division 
requires
 to show that the offer or disposition
is exempt under this section;
(ii)
 a statement as to what entity will [
be providing
] 
provide
 culinary water service and
the nature of that entity; and
(iii) (A) a copy of the entity's certificate of convenience and necessity issued by the
Public Service Commission; or
(B) evidence that the entity providing water service is exempt from the jurisdiction of
the Public Service Commission.
(4) (a) The director may by rule or order exempt a person from a requirement of this
chapter if the director finds that the offering of an interest in a subdivision is essentially
noncommercial.
(b) For purposes of this section, the bulk sale of subdivided lands by a subdivider to
another person who will become the subdivider of those lands is considered essentially
noncommercial.
(5) (a) A subdivider seeking to qualify under the exemption described in Subsection
(2)(c) shall file with the division:
(i) a copy of an effective statement of record filed with the Consumer Financial
Protection Bureau; and
(ii) a filing fee of $100.
(b) If a subdivider does not qualify under the exemption described in Subsection (2)(c),
the division shall credit the filing fee described in Subsection (5)(a) to the filing fee required
for registration under this chapter.
(c) Nothing in this Subsection (5) exempts a subdivider from:
(i) Sections 
57-11-16
 and 
57-11-17
; or
(ii) the requirement to file an annual report with the division under Section 
57-11-10
.
(6) Notwithstanding an exemption under this section, the division:
(a) retains jurisdiction over an offer or disposition of an interest in land to determine
whether or not the exemption continues to apply; and
(b) may require compliance with this chapter if an exemption no longer applies.
Section 2. Section 
57-11-6
 is amended to read:
57-11-6.
Application for registration -- Required documents and information --
Filing fee and deposit -- Consolidation of registration of additional lands -- Reports of
changes.
(1) [
The
] 
An
 application for registration of subdivided lands shall be filed as prescribed
by the division's rules and, unless otherwise provided by the division, shall include[
, but is not
limited to,
] the following documents and information:
(a) an irrevocable appointment of the division to receive service of any lawful process
in any noncriminal proceeding arising under this chapter against the applicant or [
his
] 
the
applicant's
 personal representative;
(b) a legal description of the subdivided lands offered for registration, together with a
map showing the division proposed or made, the dimensions of the units, and the relation of
the subdivided lands to existing streets, roads, and other off-site improvements;
(c) the states or jurisdictions, including the United States, in which an application for
registration or similar document has been filed, and a copy of any adverse order, judgment, or
decree entered in connection with the subdivided lands by the regulatory authorities in each
jurisdiction or by any court;
(d) the applicant's name and address, and the form, date, and jurisdiction of
organization;
(e)
 the address of each of [
its
] 
the applicant's
 offices in this state; [
and
]
(f)
 the name and address of the individual to whom the applicant wishes to have the
division direct all communications;
[
(e) the name, address, and principal occupation for the past five years of every
]
(g) for each
 director, officer, or general partner of the applicant or person occupying a
similar status or performing similar functions[
;
]
:
(i) the individual's name and address;
(ii) the individual's principal occupation for the five years before the day on which the
applicant files the application; and
(iii)
 the extent and nature of [
his
] 
the individual's
 interest in the applicant or the
subdivided lands as of a specified date within 30 days [
of the filing of
] 
before the day on which
the application 
is filed
;
[
(f)
] 
(h)
 a statement, in a form acceptable to the division, of the condition of the title to
the subdivided lands, including encumbrances, as of a specified date within 30 days [
of the date
of application
] 
before the day on which the application is filed
, which statement:
(i) if the subdivided lands are situated in this state, shall be in the form of
:
(A)
 a title opinion from a title insurer qualified to engage in the title insurance business
in this state
;
 or
(B)
 an opinion of an attorney, licensed to practice in this state and who is not a salaried
employee, officer, or director of the applicant or owner;
(ii) if the subdivided lands are situated in another jurisdiction, shall be in the form of
an opinion of an attorney
:
(A)
 licensed to practice in the jurisdiction where the lands are situated
;
 and
(B)
 who is not a salaried employee, officer, or director of the applicant or owner; or
(iii) may be substituted by other evidence of title acceptable to the division;
[
(g)
] 
(i)
 copies of the instruments [
which
] 
that
 will be delivered to a purchaser to
evidence [
his
] 
the purchaser's
 interest in the subdivided lands and of the contracts and other
agreements [
which
] 
that
 a purchaser will be required to agree to or sign;
[
(h)
] 
(j)
 copies of the instruments by which the interest in the subdivided lands to be
disposed of to the purchaser was acquired and a statement of any lien or encumbrance upon the
title and copies of the instruments creating the lien or encumbrance, if any, with recording data,
but if any of these instruments contain any information relating to the consideration paid upon
the prior acquisition of the subdivided lands, this information may be blocked out;
[
(i)
] 
(k)
 if there is a lien or encumbrance affecting more than one unit, a statement of
the consequences to a purchaser of failure to discharge the lien or encumbrance and the steps, if
any, taken to protect the purchaser in case of this eventuality;
[
(j)
] 
(l)
 copies of instruments creating easements, restrictions, or other encumbrances
affecting the subdivided lands;
[
(k)
] 
(m)
 a statement of the zoning and other governmental regulations affecting the
use of the subdivided lands and of any existing or proposed taxes or special assessments which
affect the subdivided lands;
[
(l)
] 
(n)
 (i) if the subdivided lands are situated in this state, and unless all lands to be
disposed of are included on a subdivision plat map [
which has been
] 
that is
 filed and approved
[
pursuant to
] 
in accordance with
 Title 17, Counties, an opinion by an attorney, licensed to
practice in this state and who is not a salaried employee, officer, or director of the applicant or
owner, 
stating
 that:
(A) the 
proposed or made land
 division [
proposed or made
] does not [
or will not
]
violate any existing state statute or local ordinance; and
(B) all permits or approvals have been obtained from the applicable state or local
authorities necessary for the subdivided lands to be put to the use for which they are offered,
except for those permits or approvals [
which
] 
that
 will not be granted until the subdivided
lands are registered under this chapter if this registration is the only condition precedent to the
granting of the permits or approvals; or
(ii) if the subdivided lands are situated in another jurisdiction, an opinion by an
attorney licensed to practice in that jurisdiction and who is not a salaried employee, officer, or
director of the applicant or owner 
stating
, that the 
proposed or made land
 division [
proposed or
made
] does not violate any existing statute, ordinance, or other law;
[
(m)
] 
(o)
 a statement of
:
(i)
 the existing provisions for access, sewage disposal, water (including a supply of
culinary water), and other public utilities in the subdivision
;
 and[
,
]
(ii)
 if [
they
] 
the provisions described in Subsection (1)(o)(i)
 are not presently available
but are feasible, the estimated cost to the purchaser [
of their
] 
for
 procurement 
of the provisions
;
[
(n)
] 
(p)
 a statement of [
any
] 
all
 improvements to be installed, the schedule for [
their
]
the
 completion 
of improvements
, any provisions for maintenance of those improvements, and
estimated costs to the purchaser 
for improvements
;
[
(o)
] 
(q)
 a statement declaring whether or not the applicant is or will be representing, in
connection with an offer or disposition of land, that culinary water service will be available to
or on the subdivided lands, and if the applicant is or will be so representing:
(i) a statement as to what entity will be providing the culinary water service and the
nature of the entity; and
(ii) if the entity providing the 
culinary water
 service is not a municipal system, a
certificate from the Public Service Commission that the entity providing the culinary water
service [
either
]
:
(A)
 holds a certificate of convenience and necessity from the [
commission,
] 
Public
Service Commission;
 or
(B)
 has been found by the Public Service Commission to be exempt from [
its
] 
the
Public Service Commission's
 jurisdiction;
[
(p)
] 
(r)
 a narrative description of the promotional plan for the disposition of the
subdivided lands together with copies of all advertising material [
which has been
] 
that is
prepared for public distribution by any means of communication;
[
(q)
] 
(s)
 the proposed public offering statement;
[
(r)
] 
(t)
 a copy of every public report or public offering statement or similar document
filed with or issued by any agency of the United States or any state or jurisdiction; and
[
(s)
] 
(u)
 any other reasonable information, including any current financial statement,
[
which
] 
that
 the division by [
its rules
] 
rule
 requires for the protection of purchasers.
(2) 
(a)
 Each application for registration of subdivided lands shall be accompanied by a
filing fee of $500 for up to 30 units, plus an additional $3 per unit for each unit over 30 units
up to a maximum of $2,500 for each application[
, and a deposit of $300 to cover all on-site
inspection costs and expenses incurred by the division. If the $300 deposit is insufficient to
meet the estimated costs and expenses of the on-site inspection, the applicant or owner shall
make an additional deposit sufficient to cover the estimated costs and expenses before the
division will inspect the subdivided lands. The deposit shall be refunded to the extent it is not
used, together with an itemized statement from the division of all amounts it has used
].
(b) If the division determines that an on-site inspection of the subdivided lands
proposed for registration to be offered for disposition is necessary, the applicant shall pay the
division the actual amount of costs the division incurs performing the on-site inspection.
(3) In the event the subdivider registers additional subdivided lands to be offered for
disposition, [
he
] 
the subdivider
 may consolidate the subsequent registration with any earlier
registration offering subdividing lands for disposition under the same promotional plan by
filing an application for consolidation
:
(a)
 accompanied by an additional fee of $200, plus $3 for each additional unit, up to a
maximum of $1,250 for each application[
,
]
; and
(b)
 if at the time the subdivider makes the application
,
 all of the information required
by Subsection (1) of this section [
has been brought
] 
is
 current and covers the additional
subdivided lands.
(4) [
The
] 
A
 subdivider shall report any material change in the information contained in
[
an
] 
the subdivider's
 application for registration or consolidation within 15 days [
from the time
]
after the day on which
 that change becomes known to [
him
] 
the subdivider
.
Section 3. Section 
57-11-10
 is amended to read:
57-11-10.
Renewal report -- Renewal fee -- Examination by division -- Annual
reports.
(1) (a) Within 30 days after each annual anniversary date of the division's registration
of subdivided lands, the subdivider shall file a renewal report in the form [
prescribed by the
division
] 
the division prescribes
 together with a renewal fee of [
$200
] 
$50
.
(b) The report shall reflect [
any
] 
all
 material changes [
in
] 
to
 information contained in
the original application for registration, including any change in ownership of the subdivider.
(c) The report shall also indicate the number of units in the subdivision that have been
disposed of since the division registered the subdivided lands.
(2) (a) The division may, upon the filing of a renewal report, initiate a renewal
examination of the kind described in Section 
57-11-8
.
(b) If the division determines upon inquiry and examination that 
the subdivider fails to
meet
 any of the requirements of Section 
57-11-8
 [
have not been met, it
]
, the division
 shall
notify the subdivider that the 
subdivider must correct the
 report, the promotional plan, or the
plan of disposition [
must be corrected
] within 20 days
,
 or any additional time allowed by the
division
, after the day on which the subdivider receives the notice
.
(c) If the 
subdivider does not meet the
 requirements [
are not met
] within the time
allowed, the division may, notwithstanding the provisions of Section 
57-11-13
 and without
further notice, issue a cease and desist order according to the emergency procedures of Title
63G, Chapter 4, Administrative Procedures Act, barring further sale of the subdivided lands.
(3) The division may permit the filing of annual reports within 30 days after the
anniversary date of the consolidated registration in lieu of the anniversary date of the original
registration.
Section 4. Section 
61-2-203
 is amended to read:
61-2-203.
Adjudicative proceedings -- Citation authority.
(1) The division shall comply with Title 63G, Chapter 4, Administrative Procedures
Act, in an adjudicative proceeding under a chapter the division administers.
(2) The division may initiate an adjudicative proceeding through:
(a) a notice of agency action; or
(b) a notice of formal or informal proceeding.
(3) If the division initiates an adjudicative proceeding in accordance with this title
against a person subject to the occupational or professional regulations of this title, the person
is strictly liable for each violation, unless statute or rule, made in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, states otherwise.
[
(3)
] 
(4)
 The provisions of Title 63G, Chapter 4, Administrative Procedures Act, do not
apply to the issuance of a citation under Subsection [
(4)
] 
(5)
, unless a licensee or another
person authorized by law to contest the validity or correctness of a citation commences an
adjudicative proceeding contesting the citation.
[
(4)
] 
(5)
 In addition to any other statutory penalty for a violation related to an
occupation or profession regulated under this title, the division may issue a citation to a person
who, upon inspection or investigation, the division concludes to have violated:
(a) Subsection 
61-2c-201
(1), which requires licensure;
(b) Subsection 
61-2c-201
(4), which requires entity licensure;
(c) Subsection 
61-2c-205
(3), which requires notification of a change in specified
information regarding a licensee;
(d) Subsection 
61-2c-205
(4), which requires notification of a specified legal action;
(e) Subsection 
61-2c-301
(1)(g), which prohibits failing to respond to the division
within the required time period;
(f) Subsection 
61-2c-301
(1)(h), which prohibits making a false representation to the
division;
(g) Subsection 
61-2c-301
(1)(i), which prohibits taking a dual role in a transaction;
(h) Subsection 
61-2c-301
(1)(l), which prohibits engaging in false or misleading
advertising;
(i) Subsection 
61-2c-301
(1)(t), which prohibits advertising the ability to do licensed
work if unlicensed;
(j) Subsection 
61-2c-302
(5), which requires a mortgage entity to create and file a
quarterly report of condition;
(k) Subsection 
61-2e-201
(1), which requires registration;
(l) Subsection 
61-2e-203
(4), which requires a notification of a change in ownership;
(m) Subsection 
61-2e-307
(1)(c), which prohibits use of an unregistered fictitious name;
(n) Subsection 
61-2e-401
(1)(c), which prohibits failure to respond to a division
request;
(o) Subsection 
61-2f-201
(1), which requires licensure;
(p) Subsection 
61-2f-206
(1), which requires entity registration;
(q) Subsection 
61-2f-301
(1), which requires notification of a specified legal action;
(r) Subsection 
61-2f-401
(1)(a), which prohibits making a substantial misrepresentation;
(s) Subsection 
61-2f-401
(3), which prohibits undertaking real estate while not affiliated
with a principal broker;
(t) Subsection 
61-2f-401
(9), which prohibits failing to keep specified records and
prohibits failing to make the specified records available for division inspection;
(u) Subsection 
61-2f-401
[
(13)
]
(12)
, which prohibits false, misleading, or deceptive
advertising;
(v) Subsection 
61-2f-401
[
(20)
]
(18)
, which prohibits failing to respond to a division
request;
(w) Subsection 
61-2g-301
(1), which requires licensure;
(x) Subsection 
61-2g-405
(3), which requires making records required to be maintained
available to the division;
(y) Subsection 
61-2g-501
(2)(c), which requires a person to respond to a division
request in an investigation within 10 days after the day on which the request is served;
(z) Subsection 
61-2g-502
(2)(f), which prohibits using a nonregistered fictitious name;
(aa) a rule made pursuant to any Subsection listed in this Subsection [
(4)
] 
(5)
;
(bb) an order of the division; or
(cc) an order of the commission or board that oversees the person's profession.
[
(5)
] 
(6)
 (a) In accordance with Subsection [
(10)
] 
(11)
, the division may assess a fine
against a person for a violation of a provision listed in Subsection [
(4)
] 
(5)
, as evidenced by:
(i) an uncontested citation;
(ii) a stipulated settlement; or
(iii) a finding of a violation in an adjudicative proceeding.
(b) The division may, in addition to or in lieu of a fine under Subsection [
(5)
] 
(6)
(a),
order the person to cease and desist from an activity that violates a provision listed in
Subsection [
(4)
] 
(5)
.
[
(6)
] 
(7)
 Except as provided in Subsection [
(8)
] 
(9)
(d), the division may not use a
citation to effect a license:
(a) denial;
(b) probation;
(c) suspension; or
(d) revocation.
[
(7)
] 
(8)
 (a) A citation issued by the division shall:
(i) be in writing;
(ii) describe with particularity the nature of the violation, including a reference to the
provision of the statute, rule, or order alleged to have been violated;
(iii) clearly state that the recipient must notify the division in writing within 20
calendar days after the day on which the citation is served if the recipient wishes to contest the
citation at a hearing conducted under Title 63G, Chapter 4, Administrative Procedures Act; and
(iv) clearly explain the consequences of failure to timely contest the citation or to make
payment of a fine assessed by the citation within the time period specified in the citation.
(b) The division may issue a notice in lieu of a citation.
[
(8)
] 
(9)
 (a) A citation becomes final:
(i) if within 20 calendar days after the day on which the citation is served, the person to
whom the citation was issued fails to request a hearing to contest the citation; or
(ii) if the director or the director's designee conducts a hearing pursuant to a timely
request for a hearing and issues an order finding that a violation has occurred.
(b) The division may extend, for cause, the 20-day period 
described in Subsection
(9)(a)
 to contest a citation.
(c) A citation that becomes the final order of the division due to a person's failure to
timely request a hearing is not subject to further agency review.
(d) (i) The division may refuse to issue, refuse to renew, suspend, revoke, or place on
probation the license of a licensee who fails to comply with a citation after the citation
becomes final.
(ii) The failure of a license applicant to comply with a citation after the citation
becomes final is a ground for denial of the license application.
[
(9)
] 
(10)
 (a) The division may not issue a citation under this section after the
expiration of one year after the day on which the violation occurs.
(b) The division may issue a notice to address a violation that is outside of the one-year
citation period.
[
(10)
] 
(11)
 The director or the director's designee shall assess a fine with a citation in
an amount that is no more than:
(a) for a first offense, $1,000;
(b) for a second offense, $2,000; and
(c) for each offense subsequent to a second offense, $2,000 for each day of continued
offense.
[
(11)
] 
(12)
 (a) An action for a first or second offense for which the division has not
issued a final order does not preclude the division from initiating a subsequent action for a
second or subsequent offense while the preceding action is pending.
(b) The final order on a subsequent action is considered a second or subsequent
offense, respectively, provided the preceding action resulted in a first or second offense,
respectively.
[
(12)
] 
(13)
 (a) If a person does not pay a penalty, the director may collect the unpaid
penalty by:
(i) referring the matter to a collection agency; or
(ii) bringing an action in the district court of the county:
(A) where the person resides; or
(B) where the office of the director is located.
(b) A county attorney or the attorney general of the state shall provide legal services to
the director in an action to collect the penalty.
(c) A court may award reasonable attorney fees and costs to the division in an action
the division brings to enforce the provisions of this section.
Section 5. Section 
61-2c-102
 is amended to read:
61-2c-102.
Definitions.
(1) As used in this chapter:
(a) "Affiliation" means that a mortgage loan originator is associated with a principal
lending manager in accordance with Section 
61-2c-209
.
(b) "Applicant" means a person applying for a license under this chapter.
(c) "Approved examination provider" means a person approved by the nationwide
database or by the division as an approved test provider.
(d) "Associate lending manager" means an individual who:
(i) qualifies under this chapter as a principal lending manager; and
(ii) works by or on behalf of another principal lending manager in transacting the
business of residential mortgage loans.
(e) "Balloon payment" means a required payment in a mortgage transaction that:
(i) results in a greater reduction in the principle of the mortgage than a regular
installment payment; and
(ii) is made during or at the end of the term of the loan.
(f) "Branch lending manager" means an individual who is:
(i) licensed as a lending manager; and
(ii) designated in the nationwide database by the individual's sponsoring entity as being
responsible to work from a branch office and to supervise the business of residential mortgage
loans that is conducted at the branch office.
(g) "Branch office" means a licensed entity's office:
(i) for the transaction of the business of residential mortgage loans regulated under this
chapter;
(ii) other than the main office of the licensed entity; and
(iii) that operates under:
(A) the same business name as the licensed entity; or
(B) another trade name that is registered with the division under the entity license.
(h) "Business day" means a day other than:
(i) a Saturday;
(ii) a Sunday; or
(iii) a federal or state holiday.
(i) (i) "Business of residential mortgage loans" means for compensation or in the
expectation of compensation to:
(A) engage in an act that makes an individual a mortgage loan originator;
(B) make or originate a residential mortgage loan;
(C) directly or indirectly solicit a residential mortgage loan for another;
(D) unless exempt under Section 
61-2c-105
 or excluded under Subsection (1)(i)(ii),
render services related to the origination of a residential mortgage loan including:
(I) preparing a loan package;
(II) communicating with the borrower or lender;
(III) advising on a loan term;
(IV) receiving, collecting, or distributing information common for the processing or
underwriting of a loan in the mortgage industry; or
(V) communicating with a consumer to obtain information necessary for the processing
or underwriting of a residential mortgage loan; or
(E) engage in loan modification assistance.
(ii) "Business of residential mortgage loans" does not include:
(A) ownership of an entity that engages in the business of residential mortgage loans if
the owner does not personally perform the acts listed in Subsection (1)(i)(i);
(B) acting in one or more of the following capacities:
(I) a loan wholesaler;
(II) an account executive for a loan wholesaler;
(III) a loan closer; or
(IV) funding a loan; or
(C) if employed by a person who owns or services an existing residential mortgage
loan, the direct negotiation with the borrower for the purpose of loan modification.
(j) "Certified education provider" means a person who is certified under Section
61-2c-204.1
 to provide [
one or more of the following: (i)
] Utah-specific prelicensing
education[
; or
]
.
[
(ii) Utah-specific continuing education.
]
(k) "Closed-end" means a loan:
(i) with a fixed amount borrowed; and
(ii) that does not permit additional borrowing secured by the same collateral.
(l) "Commission" means the Residential Mortgage Regulatory Commission created in
Section 
61-2c-104
.
(m) "Community development financial institution" means the same as that term is
defined in 12 U.S.C. Sec. 4702.
(n) "Compensation" means anything of economic value that is paid, loaned, granted,
given, donated, or transferred to an individual or entity for or in consideration of:
(i) services;
(ii) personal or real property; or
(iii) another thing of value.
(o) "Concurrence" means that entities given a concurring role must jointly agree for the
action to be taken.
(p) "Continuing education" means education [
taken by an individual licensed under
this chapter
] 
an individual takes
 in order to meet the education requirements imposed by
Sections 
61-2c-204.1
 and 
61-2c-205
 to 
activate,
 renew
, or reinstate
 a license under this chapter.
(q) "Control," as used in Subsection 
61-2c-105
(2)(f), means the power to directly or
indirectly:
(i) direct or exercise a controlling interest over:
(A) the management or policies of an entity; or
(B) the election of a majority of the directors, officers, managers, or managing partners
of an entity;
(ii) vote 20% or more of a class of voting securities of an entity by an individual; or
(iii) vote more than 5% of a class of voting securities of an entity by another entity.
(r) (i) "Control person" means an individual identified by an entity registered with the
nationwide database as being an individual directing the management or policies of the entity.
(ii) "Control person" may include one of the following who is identified as provided in
Subsection (1)(r)(i):
(A) a manager;
(B) a managing partner;
(C) a director;
(D) an executive officer; or
(E) an individual who performs a function similar to an individual listed in this
Subsection (1)(r)(ii).
(s) "Depository institution" means the same as that term is defined in Section 
7-1-103
.
(t) "Director" means the director of the division.
(u) "Division" means the Division of Real Estate.
(v) "Dwelling" means a residential structure attached to real property that contains one
to four family units including any of the following if used as a residence:
(i) a condominium unit;
(ii) a cooperative unit;
(iii) a manufactured home; or
(iv) a house.
(w) "Employee":
(i) means an individual:
(A) whose manner and means of work performance are subject to the right of control
of, or are controlled by, another person; and
(B) whose compensation for federal income tax purposes is reported, or is required to
be reported, on a W-2 form issued by the controlling person; and
(ii) does not include an independent contractor who performs duties other than at the
direction of, and subject to the supervision and instruction of, another person.
(x) "Entity" means:
(i) a corporation;
(ii) a limited liability company;
(iii) a partnership;
(iv) a company;
(v) an association;
(vi) a joint venture;
(vii) a business trust;
(viii) a trust; or
(ix) another organization.
(y) "Executive director" means the executive director of the Department of Commerce.
(z) "Federal licensing requirements" means Secure and Fair Enforcement for Mortgage
Licensing, 12 U.S.C. Sec. 5101 et seq.
(aa) "Foreclosure rescue" means, for compensation or with the expectation of receiving
valuable consideration, to:
(i) engage, or offer to engage, in an act that:
(A) the person represents will assist a borrower in preventing a foreclosure; and
(B) relates to a transaction involving the transfer of title to residential real property; or
(ii) as an employee or agent of another person:
(A) solicit, or offer that the other person will engage in an act described in Subsection
(1)(aa)(i); or
(B) negotiate terms in relationship to an act described in Subsection (1)(aa)(i).
(bb) "Inactive status" means a dormant status into which an unexpired license is placed
when the holder of the license is not currently engaging in the business of residential mortgage
loans.
(cc) "Lending manager" means an individual licensed as a lending manager under
Section 
61-2c-206
 to transact the business of residential mortgage loans.
(dd) "Licensee" means a person licensed with the division under this chapter.
(ee) "Licensing examination" means the examination required by Section 
61-2c-204.1
or 
61-2c-206
 for an individual to obtain a license under this chapter.
(ff) "Loan modification assistance" means, for compensation or with the expectation of
receiving valuable consideration, to:
(i) act, or offer to act, on behalf of a person to:
(A) obtain a loan term of a residential mortgage loan that is different from an existing
loan term including:
(I) an increase or decrease in an interest rate;
(II) a change to the type of interest rate;
(III) an increase or decrease in the principal amount of the residential mortgage loan;
(IV) a change in the number of required period payments;
(V) an addition of collateral;
(VI) a change to, or addition of, a prepayment penalty;
(VII) an addition of a cosigner; or
(VIII) a change in persons obligated under the existing residential mortgage loan; or
(B) substitute a new residential mortgage loan for an existing residential mortgage
loan; or
(ii) as an employee or agent of another person:
(A) solicit, or offer that the other person will engage in an act described in Subsection
(1)(ff)(i); or
(B) negotiate terms in relationship to an act described in Subsection (1)(ff)(i).
(gg) (i) "Mortgage loan originator" means an individual who, for compensation or in
expectation of compensation:
(A) (I) takes a residential mortgage loan application;
(II) offers or negotiates terms of a residential mortgage loan for the purpose of:
(Aa) a purchase;
(Bb) a refinance;
(Cc) a loan modification assistance; or
(Dd) a foreclosure rescue; or
(III) directly or indirectly solicits a residential mortgage loan for another person; and
(B) is licensed as a mortgage loan originator in accordance with this chapter.
(ii) "Mortgage loan originator" does not include a person who:
(A) is described in Subsection (1)(gg)(i), but who performs exclusively administrative
or clerical tasks as described in Subsection (1)(i)(ii)(A);
(B) (I) is licensed under Chapter 2f, Real Estate Licensing and Practices Act;
(II) performs only real estate brokerage activities; and
(III) receives no compensation from:
(Aa) a lender;
(Bb) a lending manager; or
(Cc) an agent of a lender or lending manager; or
(C) is solely involved in extension of credit relating to a timeshare plan, as defined in
11 U.S.C. Sec. 101(53D).
(hh) "Nationwide database" means the Nationwide Mortgage Licensing System and
Registry, authorized under federal licensing requirements.
(ii) "Nontraditional mortgage product" means a mortgage product other than a 30-year
fixed rate mortgage.
(jj) "Person" means an individual or entity.
(kk) "Prelicensing education" means education taken by an individual seeking to be
licensed under this chapter in order to meet the education requirements imposed by Section
61-2c-204.1
 or 
61-2c-206
 for an individual to obtain a license under this chapter.
(ll) "Principal lending manager" means an individual:
(i) licensed as a lending manager under Section 
61-2c-206
; and
(ii) identified in the nationwide database by the individual's sponsoring entity as the
entity's principal lending manager.
(mm) "Prospective borrower" means a person applying for a mortgage from a person
who is required to be licensed under this chapter.
(nn) "Record" means information that is:
(i) prepared, owned, received, or retained by a person; and
(ii) (A) inscribed on a tangible medium; or
(B) (I) stored in an electronic or other medium; and
(II) in a perceivable and reproducible form.
(oo) "Referral fee":
(i) means any fee, kickback, other compensation, or thing of value tendered for a
referral of business or a service incident to or part of a residential mortgage loan transaction;
and
(ii) does not include:
(A) a payment made by a licensed entity to an individual employed by the entity under
a contractual incentive program according to rules made by the division in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
(B) a payment made for reasonable promotional and educational activities that is not
conditioned on the referral of business and is not used to pay expenses that a person in a
position to refer settlement services or business related to the settlement services would
otherwise incur.
(pp) "Residential mortgage loan" means an extension of credit, if:
(i) the loan or extension of credit is secured by a:
(A) mortgage;
(B) deed of trust; or
(C) consensual security interest; and
(ii) the mortgage, deed of trust, or consensual security interest described in Subsection
(1)(pp)(i):
(A) is on a dwelling located in the state; and
(B) is created with the consent of the owner of the residential real property.
(qq) "Settlement" means the time at which each of the following is complete:
(i) the borrower and, if applicable, the seller sign and deliver to each other or to the
escrow or closing office each document required by:
(A) the real estate purchase contract;
(B) the lender;
(C) the title insurance company;
(D) the escrow or closing office;
(E) the written escrow instructions; or
(F) applicable law;
(ii) the borrower delivers to the seller, if applicable, or to the escrow or closing office
any money, except for the proceeds of any new loan, that the borrower is required to pay; and
(iii) if applicable, the seller delivers to the buyer or to the escrow or closing office any
money that the seller is required to pay.
(rr) "Settlement services" means a service provided in connection with a real estate
settlement, including a title search, a title examination, the provision of a title certificate,
services related to title insurance, services rendered by an attorney, preparing documents, a
property survey, rendering a credit report or appraisal, a pest or fungus inspection, services
rendered by a real estate agent or broker, the origination of a federally related mortgage loan,
and the processing of a federally related mortgage.
(ss) "Sponsorship" means an association in accordance with Section 
61-2c-209
between an individual licensed under this chapter and an entity licensed under this chapter.
(tt) "State" means:
(i) a state, territory, or possession of the United States;
(ii) the District of Columbia; or
(iii) the Commonwealth of Puerto Rico.
(uu) "Uniform state test" means the uniform state content section of the qualified
written test developed by the nationwide database.
(vv) "Unique identifier" means the same as that term is defined in 12 U.S.C. Sec. 5102.
(ww) "Utah-specific" means an educational requirement under this chapter that relates
specifically to Utah.
(2) (a) If a term not defined in this section is defined by rule, the term shall have the
meaning established by the division by rule made in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act.
(b) If a term not defined in this section is not defined by rule, the term shall have the
meaning commonly accepted in the business community.
Section 6. Section 
61-2c-202
 is amended to read:
61-2c-202.
Licensure procedures.
(1) To apply for licensure under this chapter an applicant shall in a manner provided by
the division by rule:
(a) if the applicant is an entity, submit:
(i) through the nationwide database, a licensure statement that:
(A) lists any name under which the entity will transact business in this state;
(B) lists the address of the principal business location of the entity;
(C) identifies each control person for the entity;
(D) identifies each jurisdiction in which the entity is registered, licensed, or otherwise
regulated in the business of residential mortgage loans;
(E) discloses any adverse administrative action taken by an administrative agency
against the entity or a control person for the entity; and
(F) discloses any history of criminal proceedings that involves a control person of the
entity; and
(ii) a notarized letter to the division that:
(A) is on the entity's letterhead;
(B) is signed by the entity's owner, director, or president;
(C) authorizes the principal lending manager to do business under the entity's name and
under each of the entity's licensed trade names, if any; and
(D) includes any information required by the division by rule;
(b) if the applicant is an individual:
(i) submit a licensure statement that identifies the entity with which the applicant is
sponsored;
(ii) authorize periodic criminal background checks through the nationwide database, at
times provided by rule that the division makes in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, accessing[
: (A) the Utah Bureau of Criminal Identification, if
the nationwide database is able to obtain information from the Utah Bureau of Criminal
Identification; and (B)
] the Federal Bureau of Investigation;
(iii) submit evidence using a method approved by the division by rule of having
successfully completed approved prelicensing education in accordance with Section
61-2c-204.1
;
(iv) submit evidence using a method approved by the division by rule of having
successfully passed any required licensing examination in accordance with Section
61-2c-204.1
;
(v) submit evidence using a method approved by the division by rule of having
successfully registered in the nationwide database, including paying a fee required by the
nationwide database; and
(vi) authorize the division to obtain independent credit reports:
(A) through a consumer reporting agency described in Section 603(p) of the Fair Credit
Reporting Act, 15 U.S.C. Sec. 1681a; and
(B) at times provided by rule that the division makes in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act; and
(c) pay to the division:
(i) an application fee established by the division in accordance with Section 
63J-1-504
;
and
(ii) the reasonable expenses incurred by the division in processing the application for
licensure.
(2) (a) Upon receiving an application, the division, with the concurrence of the
commission, shall determine whether the applicant:
(i) meets the qualifications for licensure; and
(ii) complies with this section.
(b) If the division, with the concurrence of the commission, determines that an
applicant meets the qualifications for licensure and complies with this section, the division
shall issue the applicant a license.
(c) If the division, with the concurrence of the commission, determines that the
division requires more information to make a determination under Subsection (2)(a), the
division may:
(i) hold the application pending further information about an applicant's criminal
background or history related to adverse administrative action in any jurisdiction; or
(ii) issue a conditional license:
(A) pending the completion of a criminal background check; and
(B) subject to probation, suspension, or revocation if the criminal background check
reveals that the applicant did not truthfully or accurately disclose on the licensing application a
criminal history or other history related to adverse administrative action.
(3) (a) The commission may delegate to the division the authority to:
(i) review a class or category of application for an initial or renewed license;
(ii) determine whether an applicant meets the qualifications for licensure;
(iii) conduct a necessary hearing on an application; and
(iv) approve or deny a license application without concurrence by the commission.
(b) If the commission delegates to the division the authority to approve or deny an
application without concurrence by the commission and the division denies an application for
licensure, the applicant who is denied licensure may petition the commission for a de novo
review of the application.
(c) An applicant who is denied licensure under Subsection (3)(b) may seek agency
review by the executive director only after the commission reviews the division's denial of the
applicant's application.
(d) Subject to Subsection (3)(c) and in accordance with Title 63G, Chapter 4,
Administrative Procedures Act, an applicant who is denied licensure under this chapter may
submit a request for agency review to the executive director within 30 days following the day
on which the commission order denying the licensure is issued.
Section 7. Section 
61-2c-204.1
 is amended to read:
61-2c-204.1.
Education providers -- Education requirements -- Examination
requirements.
(1) As used in this section:
(a) "Approved continuing education course" means a course of continuing education
that is approved by the nationwide database [
or by the division
].
(b) "Approved prelicensing education course" means a course of prelicensing education
that is approved by the nationwide database or by the division.
(2) (a) A person may not provide Utah-specific prelicensing education [
or
Utah-specific continuing education
] if that person is not certified by the division under this
chapter.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
division shall make rules establishing:
(i) certification criteria and procedures to become a certified education provider; and
(ii) standards of conduct for a certified education provider.
(c) In accordance with the rules described in Subsection (2)(b), the division shall
certify a person to provide the education described in Subsection (2)(a).
(d) (i) Upon request, the division shall make available to the public a list of the names
and addresses of certified education providers either directly or through a third party.
(ii) A person who requests a list under this Subsection (2)(d) shall pay the costs
incurred by the division to make the list available.
(e) In certifying a person as a certified education provider, the division by rule may:
(i) distinguish between an individual instructor and an entity that provides education;
or
(ii) approve[
: (A)
] Utah-specific prelicensing education[
; or
]
.
[
(B) Utah-specific continuing education courses.
]
(3) (a) The division may not:
(i) license an individual under this chapter as a mortgage loan originator who has not
completed the prelicensing education required by this section:
(A) before taking the licensing examinations required by Subsection (4);
(B) in the number of hours, not to exceed 90 hours, required by rule made by the
division in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(C) that includes the prelicensing education required by federal licensing regulations;
(ii) subject to Subsection (6), renew a license of an individual who has not completed
the continuing education required by this section and Section 
61-2c-205
:
(A) in the number of hours required by rule made by the division in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(B) that includes the continuing education required by federal licensing regulations; or
(iii) license an individual under this chapter as a lending manager who has not
completed the prelicensing education required by Section 
61-2c-206
 before taking the licensing
examination required by Section 
61-2c-206
.
(b) Subject to Subsection (3)(a) and with the concurrence of the division, the
commission shall determine:
(i) except as provided in Subsection 
61-2c-206
(1)(b), the appropriate number of hours
of prelicensing education required to obtain a license;
(ii) the subject matters of the prelicensing education required under this section and
Section 
61-2c-206
, including online education or distance learning options;
(iii) the appropriate number of hours of continuing education required to renew a
license, including additional continuing education required for a new loan originator; and
(iv) the subject matter of courses the division may accept for continuing education
purposes.
(c) The commission may appoint a committee to make recommendations to the
commission concerning approval of prelicensing education and continuing education courses,
except that the commission shall appoint at least one member to the committee to represent
each association that represents a significant number of individuals licensed under this chapter.
(d) The division may by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, provide for the calculation of continuing education credits,
except that the rules shall be consistent with 12 U.S.C. Sec. 5105.
(4) (a) The division may not license an individual under this chapter unless that
individual first passes the qualified written national test developed by the nationwide database
that includes the uniform state test content that:
(i) meets the minimum federal licensing requirements; and
(ii) is administered by an approved examination provider.
(b) The commission, with the concurrence of the division, shall determine the
requirements for the lending manager licensing examination required under Section 
61-2c-206
that tests the applicant's knowledge of:
(i) fundamentals of the English language;
(ii) arithmetic;
(iii) provisions of this chapter;
(iv) advanced residential mortgage principles and practices; and
(v) other aspects of Utah law the commission, with the concurrence of the division,
determines appropriate.
(c) An individual who will engage in an activity as a mortgage loan originator, is not
considered to have passed a licensing examination if that individual has not met the minimum
competence requirements of 12 U.S.C. Sec. 5104(d)(3).
(5) When reasonably practicable, the commission and the division shall make the
Utah-specific education requirements described in this section available electronically through
one or more distance education methods approved by the commission and division.
(6) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission, with the concurrence of the division, shall make rules establishing procedures
under which a licensee may be exempted from a Utah-specific continuing education
requirement:
(i) for a period not to exceed four years; and
(ii) upon a finding of reasonable cause.
(b) An individual who engages in an activity as a mortgage loan originator may not
under this Subsection (6) be exempted from the minimum continuing education required under
federal licensing regulations for an individual who engages in an activity as a mortgage loan
originator.
Section 8. Section 
61-2c-301
 is amended to read:
61-2c-301.
Prohibited conduct -- Violations of the chapter.
(1) A person transacting the business of residential mortgage loans in this state may
not:
(a) give or receive a referral fee;
(b) charge a fee in connection with a residential mortgage loan transaction:
(i) that is excessive; or
(ii) without providing to the loan applicant a written statement signed by the loan
applicant:
(A) stating whether or not the fee or deposit is refundable; and
(B) describing the conditions, if any, under which all or a portion of the fee or deposit
will be refunded to the loan applicant;
(c) act incompetently in the transaction of the business of residential mortgage loans
such that the person fails to:
(i) safeguard the interests of the public; or
(ii) conform to acceptable standards of the residential mortgage loan industry;
(d) do any of the following as part of a residential mortgage loan transaction, regardless
of whether the residential mortgage loan closes:
(i) make a false statement or representation;
(ii) cause false documents to be generated; or
(iii) knowingly permit false information to be submitted by any party;
(e) give or receive compensation or anything of value, or withhold or threaten to
withhold payment of an appraiser fee, to influence the independent judgment of an appraiser in
reaching a value conclusion in a residential mortgage loan transaction, except that it is not a
violation of this section for a licensee to withhold payment because of a bona fide dispute
regarding a failure of the appraiser to comply with the licensing law or the Uniform Standards
of Professional Appraisal Practice;
(f) violate or not comply with:
(i) this chapter;
(ii) an order of the commission or division; or
(iii) a rule made by the division;
(g) fail to respond within the required time period to:
(i) a notice or complaint of the division; or
(ii) a request for information from the division;
(h) make false representations to the division, including in a licensure statement;
(i) [
for a residential mortgage loan transaction beginning on or after January 1, 2004,
]
engage in the business of residential mortgage loans with respect to the transaction if the
person also acts in any of the following capacities with respect to the same residential mortgage
loan transaction:
(i) appraiser;
(ii) escrow agent;
(iii) real estate agent;
(iv) general contractor; or
(v) title insurance producer;
(j) engage in unprofessional conduct as defined by rule;
(k) engage in an act or omission in transacting the business of residential mortgage
loans that constitutes dishonesty, fraud, or misrepresentation;
(l) engage in false or misleading advertising;
(m) (i) fail to account for money received in connection with a residential mortgage
loan;
(ii) use money for a different purpose from the purpose for which the money is
received; or
(iii) except as provided in Subsection (4), retain money paid for services if the services
are not performed;
(n) fail to provide a prospective borrower a copy of each appraisal and any other
written valuation developed in connection with an application for credit that is to be secured by
a first lien on a dwelling in accordance with Subsection (5);
(o) engage in an act that is performed to:
(i) evade this chapter; or
(ii) assist another person to evade this chapter;
(p) recommend or encourage default, delinquency, or continuation of an existing
default or delinquency, by a mortgage applicant on an existing indebtedness before the closing
of a residential mortgage loan that will refinance all or part of the indebtedness;
(q) in the case of the lending manager of an entity or a branch office of an entity, fail to
exercise reasonable supervision over the activities of:
(i) unlicensed staff; or
(ii) a mortgage loan originator who is affiliated with the lending manager;
(r) pay or offer to pay an individual who does not hold a license under this chapter for
work that requires the individual to hold a license under this chapter;
(s) in the case of a dual licensed title licensee as defined in Section 
31A-2-402
:
(i) provide a title insurance product or service without the approval required by Section
31A-2-405
; or
(ii) knowingly provide false or misleading information in the statement required by
Subsection 
31A-2-405
(2);
(t) represent to the public that the person can or will perform any act of a mortgage
loan originator if that person is not licensed under this chapter because the person is exempt
under Subsection 
61-2c-105
(4), including through:
(i) advertising;
(ii) a business card;
(iii) stationery;
(iv) a brochure;
(v) a sign;
(vi) a rate list; or
(vii) other promotional item;
(u) (i) engage in an act of loan modification assistance without being licensed under
this chapter;
(ii) engage in an act of foreclosure rescue that requires licensure as a real estate agent
or real estate broker under Chapter 2, Division of Real Estate, without being licensed under
that chapter;
(iii) engage in an act of loan modification assistance without entering into a written
agreement specifying which one or more acts of loan modification assistance will be
completed;
(iv) request or require a person to pay a fee before obtaining:
(A) a written offer for a loan modification from the person's lender or servicer; and
(B) the person's written acceptance of the offer from the lender or servicer;
(v) induce a person seeking a loan modification to hire the licensee to engage in an act
of loan modification assistance by:
(A) suggesting to the person that the licensee has a special relationship with the
person's lender or loan servicer; or
(B) falsely representing or advertising that the licensee is acting on behalf of:
(I) a government agency;
(II) the person's lender or loan servicer; or
(III) a nonprofit or charitable institution;
(vi) recommend or participate in a loan modification that requires a person to:
(A) transfer title to real property to the licensee or to a third-party with whom the
licensee has a business relationship or financial interest;
(B) make a mortgage payment to a person other than the person's loan servicer; or
(C) refrain from contacting the person's:
(I) lender;
(II) loan servicer;
(III) attorney;
(IV) credit counselor; or
(V) housing counselor; or
(vii) for an agreement for loan modification assistance entered into on or after May 11,
2010, engage in an act of loan modification assistance without offering in writing to the person
entering into the agreement for loan modification assistance a right to cancel the agreement
within three business days after the day on which the person enters the agreement;
(v) sign or initial a document on behalf of another person, except for in a circumstance
allowed by the division by rule, with the concurrence of the commission, made in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(w) violate or fail to comply with a provision of Title 57, Chapter 28, Utah Reverse
Mortgage Act; or
(x) engage in any act or practice that violates appraisal independence as defined in 15
U.S.C. Sec. 1639e or in the policies and procedures of:
(i) the Federal Home Loan Mortgage Corporation; or
(ii) the Federal National Mortgage Association.
[
(2) Whether or not the crime is related to the business of residential mortgage loans, it
is a violation of this chapter for a licensee or a person who is a certified education provider to
do any of the following with respect to a criminal offense that involves moral turpitude:
]
[
(a) be convicted;
]
[
(b) plead guilty or nolo contendere;
]
[
(c) enter a plea in abeyance; or
]
[
(d) be subjected to a criminal disposition similar to the ones described in Subsections
(2)(a) through (c).
]
(2) Regardless of whether the crime is related to the business of residential mortgage
loans, it is a violation of this chapter for a licensee or a person who is a certified education
provider to:
(a) be convicted of:
(i) a felony; or
(ii) any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A) a class A misdemeanor;
(B) a class B misdemeanor; or
(C) a criminal offense comparable to a class A or class B misdemeanor;
(b) plead guilty or nolo contendere to:
(i) a felony; or
(ii) any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A) a class A misdemeanor;
(B) a class B misdemeanor; or
(C) a criminal offense comparable to a class A or class B misdemeanor; or
(c) enter into a plea in abeyance agreement in relation to:
(i) a felony; or
(ii) any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A) a class A misdemeanor;
(B) a class B misdemeanor; or
(C) a criminal offense comparable to a class A or class B misdemeanor.
(3) A lending manager does not violate Subsection (1)(q) if:
(a) in contravention of the lending manager's written policies and instructions, an
affiliated licensee of the lending manager violates:
(i) this chapter; or
(ii) rules made by the division under this chapter;
(b) the lending manager established and followed reasonable procedures to ensure that
affiliated licensees receive adequate supervision;
(c) upon learning of a violation by an affiliated licensee, the lending manager
attempted to prevent or mitigate the damage;
(d) the lending manager did not participate in or ratify the violation by an affiliated
licensee; and
(e) the lending manager did not attempt to avoid learning of the violation.
(4) Notwithstanding Subsection (1)(m)(iii), a licensee may, upon compliance with
Section 
70D-2-305
, charge a reasonable cancellation fee for work done originating a mortgage
if the mortgage is not closed.
(5) (a) Except as provided in Subsection (5)(b), a person transacting the business of
residential mortgage loans in this state shall provide a prospective borrower a copy of each
appraisal and any other written valuation developed in connection with an application for credit
that is to be secured by a first lien on a dwelling on or before the earlier of:
(i) as soon as reasonably possible after the appraisal or other valuation is complete; or
(ii) three business days before the day of the settlement.
(b) Subject to Subsection (5)(c), unless otherwise prohibited by law, a prospective
borrower may waive the timing requirement described in Subsection (5)(a) and agree to receive
each appraisal and any other written valuation:
(i) less than three business days before the day of the settlement; or
(ii) at the settlement.
(c) (i) Except as provided in Subsection (5)(c)(ii), a prospective borrower shall submit
a waiver described in Subsection (5)(b) at least three business days before the day of the
settlement.
(ii) Subsection (5)(b) does not apply if the waiver only pertains to a copy of an
appraisal or other written valuation that contains only clerical changes from a previous version
of the appraisal or other written valuation and the prospective borrower received a copy of the
original appraisal or other written valuation at least three business days before the day of the
settlement.
(d) If a prospective borrower submits a waiver described in Subsection (5)(b) and the
transaction never completes, the person transacting the business of residential mortgage loans
shall provide a copy of each appraisal or any other written valuation to the applicant no later
than 30 days after the day on which the person knows the transaction will not complete.
Section 9. Section 
61-2e-306
 is amended to read:
61-2e-306.
Removal of appraiser from appraisal panel.
(1) [
Except within the first 30 days after the day on which an appraiser is first added to
the appraiser panel of an appraisal management company, an
] 
An
 appraisal management
company may not remove the appraiser from [
its
] 
the appraisal management company's
appraiser panel, or otherwise refuse to assign a request for a real estate appraisal activity to the
appraiser without:
(a) notifying the appraiser in writing of:
(i) the reason why the appraiser is being removed from the appraiser panel of the
appraisal management company; and
(ii) the nature of the alleged conduct or violation if the appraiser is being removed from
the appraiser panel for:
(A) illegal conduct; or
(B) a violation of the applicable appraisal standards; and
(b) providing an opportunity for the appraiser to respond to the notification under
Subsection (1)(a).
(2) The board, with the concurrence of the division, may establish by rule made in
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, requirements
consistent with this section regarding the removal of an appraiser from an appraisal panel.
Section 10. Section 
61-2f-205
 is amended to read:
61-2f-205.
Form of license -- Display of license.
[
(1)
] The division shall issue to a licensee a [
wall
] license that contains:
[
(a)
] 
(1)
 the name and address of the licensee;
[
(b)
] 
(2)
 the seal of the state; and
[
(c)
] 
(3)
 any other matter prescribed by the division.
[
(2) The division shall send, by mail or email, the license described in Subsection (1) to
the licensee at the mailing address or email address furnished by the licensee.
]
[
(3) A principal broker shall keep the license of the principal broker and the license of
any associate broker or sales agent affiliated with the principal broker in the office in which the
licensee works to be made available on request.
]
Section 11. Section 
61-2f-401
 is amended to read:
61-2f-401.
Grounds for disciplinary action.
The following acts are unlawful 
and grounds for disciplinary action
 for a person
licensed or required to be licensed under this chapter:
(1) (a) making a substantial misrepresentation, including in a licensure statement;
(b) making an intentional misrepresentation;
(c) pursuing a continued and flagrant course of misrepresentation;
(d) making a false representation or promise through an agent, sales agent, advertising,
or otherwise; or
(e) making a false representation or promise of a character likely to influence,
persuade, or induce;
(2) acting for more than one party in a transaction without the informed consent of the
parties;
(3) (a) acting as an associate broker or sales agent while not affiliated with a principal
broker;
(b) representing or attempting to represent a principal broker other than the principal
broker with whom the person is affiliated; or
(c) representing as sales agent or having a contractual relationship similar to that of
sales agent with a person other than a principal broker;
(4) (a) failing, within a reasonable time, to account for or to remit money that belongs
to another and comes into the person's possession;
(b) commingling money described in Subsection (4)(a) with the person's own money;
or
(c) diverting money described in Subsection (4)(a) from the purpose for which the
money is received;
(5) paying or offering to pay valuable consideration[
, as defined by the commission,
] to
a person not licensed under this chapter, except that valuable consideration may be shared:
(a) with a principal broker of another jurisdiction; or
(b) as provided under:
(i) Title 16, Chapter 10a, Utah Revised Business Corporation Act;
(ii) Title 16, Chapter 11, Professional Corporation Act; or
(iii) Title 48, Chapter 3a, Utah Revised Uniform Limited Liability Company Act, as
appropriate pursuant to Section 
48-3a-1405
;
(6) for a principal broker, paying or offering to pay a sales agent or associate broker
who is not affiliated with the principal broker at the time the sales agent or associate broker
earned the compensation;
(7) being incompetent to act as a principal broker, associate broker, or sales agent in
such manner as to safeguard the interests of the public;
(8) failing to voluntarily furnish a copy of a document to the parties before and after the
execution of a document;
(9) failing to keep and make available for inspection by the division a record of each
transaction, including:
(a) the names of buyers and sellers or lessees and lessors;
(b) the identification of real estate;
(c) the sale or rental price;
(d) money received in trust;
(e) agreements or instructions from buyers and sellers or lessees and lessors; and
(f) any other information required by rule;
(10) failing to disclose, in writing, in the purchase, sale, or rental of real estate, whether
the purchase, sale, or rental is made for that person or for an undisclosed principal;
[
(11) being convicted, within five years of the most recent application for licensure, of
a criminal offense involving moral turpitude regardless of whether:
]
[
(a) the criminal offense is related to real estate; or
]
[
(b) the conviction is based upon a plea of nolo contendere;
]
[
(12) having, within five years of the most recent application for a license under this
chapter, entered any of the following related to a criminal offense involving moral turpitude:
]
[
(a) a plea in abeyance agreement;
]
[
(b) a diversion agreement;
]
[
(c) a withheld judgment; or
]
[
(d) an agreement in which a charge was held in suspense during a period of time when
the licensee was on probation or was obligated to comply with conditions outlined by a court;
]
(11) regardless of whether the crime is related to the business of real estate:
(a) be convicted of:
(i) a felony; or
(ii) any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A) a class A misdemeanor;
(B) a class B misdemeanor; or
(C) a criminal offense comparable to a class A or class B misdemeanor;
(b) plead guilty or nolo contendere to:
(i) a felony; or
(ii) any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A) a class A misdemeanor;
(B) a class B misdemeanor; or
(C) a criminal offense comparable to a class A or class B misdemeanor;
(c) enter into a plea in abeyance agreement in relation to:
(i) a felony; or
(ii) any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A) a class A misdemeanor;
(B) a class B misdemeanor; or
(C) a criminal offense comparable to a class A or class B misdemeanor;
[
(13)
] 
(12)
 advertising the availability of real estate or the services of a licensee in a
false, misleading, or deceptive manner;
[
(14)
] 
(13)
 in the case of a principal broker or a branch broker, failing to exercise
active and
 reasonable supervision
, as the commission may define by rule made in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
 over the activities of the
principal broker's or branch broker's licensed or unlicensed staff;
[
(15)
] 
(14)
 violating or disregarding:
(a) this chapter;
(b) an order of the commission; or
(c) the rules adopted by the commission and the division;
[
(16)
] 
(15)
 breaching a fiduciary duty owed by a licensee to the licensee's principal in a
real estate transaction;
[
(17)
] 
(16)
 any other conduct which constitutes dishonest dealing;
[
(18) unprofessional conduct as defined by statute or rule;
]
[
(19)
] 
(17)
 having one of the following suspended, revoked, surrendered, or cancelled
on the basis of misconduct in a professional capacity that relates to character, honesty,
integrity, or truthfulness:
(a) a real estate license, registration, or certificate issued by another jurisdiction; or
(b) another license, registration, or certificate to engage in an occupation or profession
issued by this state or another jurisdiction;
[
(20)
] 
(18)
 failing to respond to a request by the division in an investigation authorized
under this chapter within 10 days after the day on which the request is served, including:
(a) failing to respond to a subpoena;
(b) withholding evidence; or
(c) failing to produce documents or records;
[
(21)
] 
(19)
 in the case of a dual licensed title licensee as defined in Section 
31A-2-402
:
(a) providing a title insurance product or service without the approval required by
Section 
31A-2-405
; or
(b) knowingly providing false or misleading information in the statement required by
Subsection 
31A-2-405
(2);
[
(22)
] 
(20)
 violating an independent contractor agreement between a principal broker
and a sales agent or associate broker as evidenced by a final judgment of a court;
[
(23)
] 
(21)
 (a) engaging in an act of loan modification assistance that requires licensure
as a mortgage officer under Chapter 2c, Utah Residential Mortgage Practices and Licensing
Act, without being licensed under that chapter;
(b) engaging in an act of foreclosure rescue without entering into a written agreement
specifying what one or more acts of foreclosure rescue will be completed;
(c) inducing a person who is at risk of foreclosure to hire the licensee to engage in an
act of foreclosure rescue by:
(i) suggesting to the person that the licensee has a special relationship with the person's
lender or loan servicer; or
(ii) falsely representing or advertising that the licensee is acting on behalf of:
(A) a government agency;
(B) the person's lender or loan servicer; or
(C) a nonprofit or charitable institution; or
(d) recommending or participating in a foreclosure rescue that requires a person to:
(i) transfer title to real estate to the licensee or to a third-party with whom the licensee
has a business relationship or financial interest;
(ii) make a mortgage payment to a person other than the person's loan servicer; or
(iii) refrain from contacting the person's:
(A) lender;
(B) loan servicer;
(C) attorney;
(D) credit counselor; or
(E) housing counselor;
[
(24)
] 
(22)
 taking or removing from the premises of a main office or a branch office, or
otherwise limiting a real estate brokerage's access to or control over, a record that:
(a) (i) the real estate brokerage's licensed staff, unlicensed staff, or affiliated
independent contractor prepared; and
(ii) is related to the business of:
(A) the real estate brokerage; or
(B) an associate broker, a branch broker, or a sales agent of the real estate brokerage; or
(b) is related to the business administration of the real estate brokerage;
[
(25)
] 
(23)
 as a principal broker, placing a lien on real property, unless authorized by
law;
[
(26)
] 
(24)
 as a sales agent or associate broker, placing a lien on real property for an
unpaid commission or other compensation related to real estate brokerage services; or
[
(27)
] 
(25)
 failing to timely disclose to a buyer or seller an affiliated business
arrangement, as defined in Section 
31A-23a-1001
, in accordance with the federal Real Estate
Settlement Procedures Act, 12 U.S.C. Sec. 2601 et seq. and any rules made thereunder.
Section 12. Section 
61-2f-402
 is amended to read:
61-2f-402.
Investigations.
(1) The division may conduct a public or private investigation within or outside of this
state as the division considers necessary to determine whether a person has violated, is
violating, or is about to violate this chapter or any rule or order under this chapter.
(2) To aid in the enforcement of this chapter or in the prescribing of rules and forms
under this chapter, the division may require or permit a person to file a statement in writing,
under oath or otherwise as to the facts and circumstances concerning the matter to be
investigated.
(3) For the purpose of the investigation described in Subsection (1), the division or an
employee designated by the division may:
(a) administer an oath or affirmation;
(b) issue a subpoena that requires:
(i) the attendance and testimony of a witness; or
(ii) the production of evidence;
(c) take evidence;
(d) require the production of a book, paper, contract, record, other document, or
information relevant to the investigation; and
(e) serve a subpoena by certified mail.
(4) (a) A court of competent jurisdiction shall enforce, according to the practice and
procedure of the court, a subpoena issued by the division.
(b) The division shall pay any witness fee, travel expense, mileage, or any other fee
required by the service statutes of the state where the witness or evidence is located.
(5) (a) If a person is found to have violated this chapter or a rule made under this
chapter, the person shall pay the costs incurred by the division to copy a book, paper, contract,
document, or record required under this chapter, including the costs incurred to copy an
electronic book, paper, contract, document, or record in a universally readable format.
(b) If a person fails to pay the costs described in Subsection (5)(a) when due, the
person's license, certification, or registration is automatically suspended:
(i) beginning the day on which the payment of costs is due; and
(ii) ending the day on which the costs are paid.
(6) (a) Except as provided in [
Subsection
] 
Subsections
 (6)(b) 
and (c)
, the division shall
commence a disciplinary action under this chapter no later than the earlier of the following:
(i) four years after the day on which the violation is reported to the division; or
(ii) 10 years after the day on which the violation occurred.
(b) Except as provided in Subsection (6)(c), the division shall commence a disciplinary
action within four years after the day on which a violation occurred, if the violation was of:
(i) Section 
61-2f-206
;
(ii) Subsection 
61-2f-401
(8), which prohibits failure to voluntarily furnish a copy of a
document to the parties before and after the execution of a document; or
(iii) Subsection 
61-2f-401
(18), which prohibits failure to respond to a division request
in an investigation within 10 days after the day on which the request is served.
[
(b)
] 
(c)
 The division may commence a disciplinary action under this chapter after the
time period described in Subsection (6)(a) 
or (b)
 expires if:
(i) (A) the disciplinary action is in response to a civil or criminal judgment or
settlement; and
(B) the division initiates the disciplinary action no later than one year after the day on
which the judgment is issued or the settlement is final; or
(ii) the division and the person subject to a disciplinary action enter into a written
stipulation to extend the time period described in Subsection (6)(a) 
or (b)
.
Section 13. Section 
61-2g-401
 is amended to read:
61-2g-401.
State-certified and state-licensed appraisers -- Restrictions on use of
terms -- Conduct prohibited or required -- Trainee.
(1) (a) The terms "state-certified general appraiser," "state-certified residential
appraiser," and "state-licensed appraiser":
(i) may only be used to refer to an individual who is certified or licensed under this
chapter; and
(ii) may not be used following, or immediately in connection with, the name or
signature of a firm, partnership, corporation, or group, or in any manner that it might be
interpreted as referring to a firm, partnership, corporation, group, or to anyone other than the
individual who is certified or licensed under this chapter.
(b) The requirement of this Subsection (1) may not be construed to prevent a
state-certified general appraiser from signing an appraisal report on behalf of a corporation,
partnership, firm, or group practice if it is clear that:
(i) only the individual is certified; and
(ii) the corporation, partnership, firm, or group practice is not certified.
(c) Except as provided in Section 
61-2g-103
, a certificate or license may not be issued
under this chapter to a corporation, partnership, firm, or group.
(2) (a) A person other than a state-certified general appraiser or state-certified
residential appraiser[
,
] may not assume or use any title, designation, or abbreviation likely to
create the impression of certification in this state as a real estate appraiser.
(b) A person other than a state-licensed appraiser may not assume or use any title,
designation, or abbreviation likely to create the impression of licensure in this state as a real
estate appraiser.
(3) (a) Only an individual who has qualified under the certification requirements of this
chapter is authorized to prepare and sign a certified appraisal report relating to real estate or
real property in this state.
[
(b) If a certified appraisal report is prepared and signed by a state-certified residential
appraiser, the certified appraisal report shall state, immediately following the signature on the
report, "State-Certified Residential Appraiser."
]
[
(c) If a certified appraisal report is prepared and signed by a state-certified general
appraiser, the certified appraisal report shall state, immediately following the signature on the
report, "State-Certified General Appraiser."
]
[
(d) An appraisal report prepared by a state-licensed appraiser shall state, immediately
following the signature on the report, "State-Licensed Appraiser."
]
[
(e) When signing a certified appraisal report, a state-certified appraiser shall also place
on the report, immediately below the state-certified appraiser's signature the state-certified
appraiser's certificate number and its expiration date.
]
[
(f)
] 
(b)
 A state-certified residential appraiser may not prepare a certified appraisal
report outside the state-certified residential appraiser's authority as defined in Section
61-2g-312
.
[
(g)
] 
(c)
 A state-licensed appraiser who assisted in the preparation of a certified
appraisal report is authorized to cosign the certified appraisal report.
(4) A person who has not qualified under this chapter may not describe or refer to any
appraisal or appraisal report relating to real estate or real property in this state by the terms
"certified appraisal" or "certified appraisal report."
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
with the concurrence of the division, the board may make rules for the administration of this
section regarding:
(a) the signing of an appraisal report; or
(b) the disclosure and use of an appraiser or an appraiser trainee's division-assigned
credential, registration, license, or certification number.
[
(5)
] 
(6)
 If a trainee assists a state-certified appraiser in the preparation of an appraisal
report, the appraisal report shall disclose:
(a) the trainee's name; and
(b) the extent to which the trainee assists in the preparation of the appraisal report.
Section 14. Section 
61-2g-405
 is amended to read:
61-2g-405.
Recordkeeping requirements.
(1) Subject to Subsection (2), a person licensed or certified under this chapter [
and a
person required to be registered under this chapter before May 3, 2001,
] shall retain for a
period of five years the original or a true copy of:
(a) each written contract engaging the person's services for real estate or real property
appraisal work;
(b) each appraisal report prepared or signed by the person; and
(c) the supporting data assembled and formulated by the appraiser in preparing each
appraisal report.
(2) The five-year period for retention of records is applicable to each engagement of
the services of the appraiser and begins upon the date of the delivery of each appraisal report to
the client unless, within the five-year period, the appraiser is notified that the appraisal or the
appraisal report is involved in litigation, in which event the records must be maintained for the
longer of:
(a) five years; or
(b) two years following the date of the final disposition of the litigation.
(3) Upon reasonable notice, a person licensed or certified under this chapter [
and a
person required to be registered under this chapter before May 3, 2001,
] shall make the records
required to be maintained under this chapter available to the division for inspection and
copying.
Section 15. Section 
61-2g-502
 is amended to read:
61-2g-502.
Disciplinary action -- Grounds.
(1) (a) The board may order disciplinary action, with the concurrence of the division,
against a person:
(i) registered, licensed, or certified under this chapter; or
(ii) required to be registered, licensed, or certified under this chapter.
(b) On the basis of a ground listed in Subsection (2) for disciplinary action, board
action may include:
(i) revoking, suspending, or placing a person's registration, license, or certification on
probation;
(ii) denying a person's original registration, license, or certification;
(iii) denying a person's renewal license, certification, or registration;
(iv) in the case of denial or revocation of a registration, license, or certification, setting
a waiting period for an applicant to apply for a registration, license, or certification under this
chapter;
(v) ordering remedial education;
(vi) imposing a civil penalty upon a person not to exceed the greater of:
(A) $5,000 for each violation; or
(B) the amount of any gain or economic benefit from a violation;
(vii) issuing a cease and desist order;
(viii) modifying an action described in Subsections (1)(b)(i) through (vii) if the board,
with the concurrence of the division, finds that the person complies with court ordered
restitution; or
(ix) doing any combination of Subsections (1)(b)(i) through (viii).
(c) (i) If the board or division issues an order that orders a fine or educational
requirements as part of the disciplinary action against a person, including a stipulation and
order, the board or division shall state in the order the deadline by which the person shall
comply with the fine or educational requirements.
(ii) If a person fails to comply with a stated deadline:
(A) the person's license, certificate, or registration is automatically suspended:
(I) beginning on the day specified in the order as the deadline for compliance; and
(II) ending the day on which the person complies in full with the order; and
(B) if the person fails to pay a fine required by an order, the division may begin a
collection process:
(I) established by the division by rule made in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act; and
(II) subject to Title 63A, Chapter 3, Part 5, Office of State Debt Collection.
(2) The following are grounds for disciplinary action under this section:
(a) procuring or attempting to procure a registration, license, or certification under this
chapter:
(i) by fraud; or
(ii) by making a false statement, submitting false information, or making a material
misrepresentation in an application filed with the division;
(b) paying money or attempting to pay money other than a fee provided for by this
chapter to a member or employee of the division to procure a registration, license, or
certification under this chapter;
(c) an act or omission in the practice of real estate appraising that constitutes
dishonesty, fraud, or misrepresentation;
(d) entry of a judgment against a registrant, licensee, or certificate holder on grounds of
fraud, misrepresentation, or deceit in the making of an appraisal of real estate;
[
(e) a guilty plea to a criminal offense involving moral turpitude that is held in
abeyance, or a conviction, including a conviction based upon a plea of guilty or nolo
contendere, of a criminal offense involving moral turpitude;
]
(e) regardless of whether the crime is related to the appraisal business, to:
(i) be convicted of a felony;
(ii) be convicted of any of the following involving fraud, misrepresentation, theft, or
dishonesty:
(A) a class A misdemeanor:
(B) a class B misdemeanor; or
(C) a criminal offense comparable to a class A or class B misdemeanor;
(iii) plead guilty or nolo contendere to a felony;
(iv) plead guilty or nolo contendere to any of the following involving fraud,
misrepresentation, theft, or dishonesty:
(A) a class A misdemeanor:
(B) a class B misdemeanor; or
(C) a criminal offense comparable to a class A or class B misdemeanor;
(v) enter into a plea in abeyance agreement involving a felony; or
(vi) enter into a plea in abeyance agreement involving any of the following involving
fraud, misrepresentation, theft, or dishonesty:
(A) a class A misdemeanor:
(B) a class B misdemeanor; or
(C) a criminal offense comparable to a class A or class B misdemeanor;
(f) engaging in the business of real estate appraising under an assumed or fictitious
name not properly registered in this state;
(g) paying a finder's fee or a referral fee to a person not licensed or certified under this
chapter in connection with an appraisal of real estate or real property in this state;
(h) making a false or misleading statement in:
(i) that portion of a written appraisal report that deals with professional qualifications;
or
(ii) testimony concerning professional qualifications;
(i) violating or disregarding:
(i) this chapter;
(ii) an order of:
(A) the board; or
(B) the division, in a case when the board delegates to the division the authority to
make a decision on behalf of the board; or
(iii) a rule issued under this chapter;
(j) violating the confidential nature of governmental records to which a person
registered, licensed, or certified under this chapter gained access through employment or
engagement as an appraiser by a governmental agency;
(k) accepting a contingent fee for performing an appraisal if in fact the fee is or was
contingent upon:
(i) the appraiser reporting a predetermined analysis, opinion, or conclusion;
(ii) the analysis, opinion, conclusion, or valuation reached; or
(iii) the consequences resulting from the appraisal assignment;
(l) unprofessional conduct as defined by statute or rule;
(m) in the case of a dual licensed title licensee as defined in Section 
31A-2-402
:
(i) providing a title insurance product or service without the approval required by
Section 
31A-2-405
; or
(ii) knowingly providing false or misleading information in the statement required by
Subsection 
31A-2-405
(2); or
(n) other conduct that constitutes dishonest dealing.
(3) A person previously licensed, certified, or registered under this chapter remains
responsible for, and is subject to disciplinary action for, an act that the person committed, while
the person was licensed, certified, or registered, in violation of this chapter or an administrative
rule in effect at the time that the person committed the act, regardless of whether the person is
currently licensed, certified, or registered.