Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 234 (2021GS)

Sponsor

Rep. Musselman, C.R.

Final action

Governor Signed 3/17/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• removes an unused definition;
• permits the Division of Real Estate to suspend or revoke the registration of an appraisal management company registered in the state if the company fails to pay certain fees;
• permits disciplinary action, under certain conditions, against an entity for a violation of statute made while the person was registered, or should have been registered, as an appraisal management company;
• permits the Division of Real Estate, under certain conditions, to enter into a reciprocal licensing agreement with another jurisdiction for a principal broker, associate broker, or sales agent license;
• amends the rulemaking requirements of the Real Estate Commission;
• amends registration requirements under the Real Estate Licensing and Practices Act;
• expands the membership of the Real Estate Appraiser Licensing and Certification Board;
• changes quorum requirements for the Real Estate Appraiser Licensing and Certification Board; and
• makes technical and conforming changes.

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,
regarding real estate.
Highlighted Provisions:
This bill:
▸ removes an unused definition;
▸ permits the Division of Real Estate to suspend or revoke the registration of an
appraisal management company registered in the state if the company fails to pay
certain fees;
▸ permits disciplinary action, under certain conditions, against an entity for a violation
of statute made while the person was registered, or should have been registered, as
an appraisal management company;
▸ permits the Division of Real Estate, under certain conditions, to enter into a
reciprocal licensing agreement with another jurisdiction for a principal broker,
associate broker, or sales agent license;
▸ amends the rulemaking requirements of the Real Estate Commission;
▸ amends registration requirements under the Real Estate Licensing and Practices Act;
▸ expands the membership of the Real Estate Appraiser Licensing and Certification
Board;
▸ changes quorum requirements for the Real Estate Appraiser Licensing and
Certification Board; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
61-2-203
, as last amended by Laws of Utah 2019, Chapter 337
61-2e-102
, as last amended by Laws of Utah 2018, Chapter 213
61-2e-205
, as enacted by Laws of Utah 2018, Chapter 213
61-2e-402
, as last amended by Laws of Utah 2012, Chapter 369
61-2f-103
, as last amended by Laws of Utah 2020, Chapters 352 and 373
61-2f-203
, as last amended by Laws of Utah 2016, Chapter 25
61-2f-206
, as last amended by Laws of Utah 2017, Chapter 182
61-2g-204
, as last amended by Laws of Utah 2020, Chapters 352 and 373
Be it enacted by the Legislature of the state of Utah:
Section 1. 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) The provisions of Title 63G, Chapter 4, Administrative Procedures Act, do not
apply to the issuance of a citation under Subsection (4), 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) 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)
] 
61-2f-401
(12)
, which prohibits false, misleading, or
deceptive advertising;
(v) Subsection 
[
61-2f-401
(20)
] 
61-2f-401
(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);
(bb) an order of the division; or
(cc) an order of the commission or board that oversees the person's profession.
(5) (a) In accordance with Subsection (10), the division may assess a fine against a
person for a violation of a provision listed in Subsection (4), 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)(a), order
the person to cease and desist from an activity that violates a provision listed in Subsection (4).
(6) Except as provided in Subsection (8)(d), the division may not use a citation to
effect a license:
(a) denial;
(b) probation;
(c) suspension; or
(d) revocation.
(7) (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) (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 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) (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) 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) (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) (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 2. Section 
61-2e-102
 is amended to read:
61-2e-102.
Definitions.
As used in this chapter:
(1) "Applicable appraisal standards" means:
(a) the Uniform Standards for Professional Appraisal Practice:
(i) published by the Appraisal Foundation; and
(ii) as adopted under Section 
61-2g-403
;
(b) Chapter 2g, Real Estate Appraiser Licensing and Certification Act; and
(c) rules made by the board under Chapter 2g, Real Estate Appraiser Licensing and
Certification Act.
(2) "Appraisal" [
is as
] 
means the same as that term is
 defined in Section 
61-2g-102
.
(3) "Appraisal foundation" [
is as
] 
means the same as that term is
 defined in Section
61-2g-102
.
(4) "Appraisal management company" means a third party authorized by one of the
following persons to broker an appraisal of a dwelling that is collateral for a residential
mortgage loan:
(a) a creditor; or
(b) an underwriter of, or other principal in, a secondary mortgage market.
(5) "Appraisal management service" means:
(a) recruiting, selecting, or retaining an appraiser;
(b) contracting with an appraiser to perform a real estate appraisal activity for a client;
(c) managing the appraisal process, including one or more of the following
administrative services:
(i) receiving an appraisal order or an appraisal report;
(ii) submitting a completed appraisal report to a client;
(iii) collecting a fee from a client for a service provided; or
(iv) paying an appraiser for a real estate appraisal activity; or
(d) reviewing or verifying the work of an appraiser.
(6) "Appraisal report" [
is as
] 
means the same as that term is
 defined in Section
61-2g-102
.
(7) "Appraisal Subcommittee" means the Appraisal Subcommittee of the Federal
Financial Institutions Examination Council.
(8) "Appraiser" means an individual who engages in a real estate appraisal activity.
(9) (a) "Appraiser panel" means a network, list, or roster of appraisers who are:
(i) licensed or certified in a state, territory, or the District of Columbia; and
(ii) approved by an appraisal management company to perform appraisals as
independent contractors for the appraisal management company.
(b) "Appraiser panel" includes an appraiser whom the appraisal management company
has:
(i) accepted for consideration for a future appraisal assignment:
(A) in a residential mortgage loan transaction; or
(B) for a secondary mortgage market participant in connection with a residential
mortgage loan transaction; or
(ii) engaged to perform an appraisal:
(A) in a residential mortgage loan transaction; or
(B) for a secondary mortgage market participant in connection with a residential
mortgage loan transaction.
(10) "Board" means the Real Estate Appraiser Licensing and Certification Board that is
created in Section 
61-2g-204
.
(11) "Client" means a person that enters into an agreement with an appraisal
management company for the performance of a real estate appraisal activity.
(12) "Concurrence" means that the entities that are given a concurring role must jointly
agree before an action may be taken.
(13) "Controlling person" means:
(a) an owner, officer, or director of an entity seeking to offer appraisal management
services;
(b) an individual employed, appointed, or authorized by an appraisal management
company who has the authority to:
(i) enter into a contractual relationship with a client for the performance of an appraisal
management service; and
(ii) enter into an agreement with an appraiser for the performance of a real estate
appraisal activity; or
(c) a person who possesses, directly or indirectly, the power to direct or cause the
direction of the management or policies of an appraisal management company.
(14) "Creditor" means:
(a) a person who regularly extends credit that, under a written agreement, is subject to a
finance charge or is payable in more than four installments, not including any down payment;
and
(b) a person to whom the obligation described in Subsection (14)(a) is initially payable,
either on the face of the note or contract, or by agreement when there is no note or contract.
(15) "Director" means the director of the division.
(16) "Division" means the Division of Real Estate, created in Section 
61-2-201
, of the
Department of Commerce.
(17) "Dwelling" means a residential structure that contains up to four units, regardless
of whether the structure is attached to real property, including:
(a) an individual condominium unit;
(b) a cooperative unit;
(c) a mobile home; or
(d) a trailer, if the trailer is used as a residence.
(18) "Entity" means:
(a) a corporation;
(b) a partnership;
(c) a sole proprietorship;
(d) a limited liability company;
(e) another business entity; or
(f) a subsidiary or unit of an entity described in Subsections (18)(a) through (e).
(19) "Federally regulated appraisal management company" means an appraisal
management company that is:
(a) owned and controlled by an insured depository institution, as defined in 12 U.S.C.
Sec. 1813; and
(b) regulated by:
(i) the Office of the Comptroller of the Currency;
(ii) the Board of Governors of the Federal Reserve System; or
(iii) the Federal Deposit Insurance Corporation.
(20) "Independent contractor" means an appraiser whom an appraisal management
company treats as an independent contractor for purposes of federal income taxation.
[
(21) "National Registry" means the database maintained by the Appraisal
Subcommittee containing information regarding appraisal management companies that are:
]
[
(a) licensed or certified by a state, territory, or the District of Columbia; or
]
[
(b) federally regulated appraisal management companies.
]
[
(22)
] 
(21)
 "Person" means an individual or an entity.
[
(23)
] 
(22)
 "Person who regularly extends credit" means a person who:
(a) extends credit, other than credit subject to the requirements of 12 C.F.R. Sec.
1026.32, to a person who has been extended credit for transactions secured by a dwelling more
than five times in:
(i) the preceding calendar year; or
(ii) the current calendar year;
(b) originates two or more credit extensions that are subject to the requirements of 12
C.F.R. Sec. 1026.32; or
(c) originates through a mortgage broker a credit extension that is subject to the
requirements of 12 C.F.R. Sec. 1026.32.
[
(24)
] 
(23)
 "Real estate appraisal activity" [
is as
] 
means the same as that term is
defined in Section 
61-2g-102
.
[
(25)
] 
(24)
 "Residential mortgage loan" means the same as that term is defined in
Section 
61-2c-102
.
[
(26)
] 
(25)
 (a) "Secondary mortgage market participant" means:
(i) a guarantor or insurer of a mortgage-backed security; or
(ii) an underwriter or insurer of a mortgage-backed security.
(b) "Secondary mortgage market participant" includes an individual investor in a
mortgage-backed security, if the investor is also the guarantor, insurer, underwriter, or issuer of
the mortgage-backed security.
[
(27)
] 
(26)
 "Territory" means any of the following United States territories:
(a) Guam;
(b) Northern Mariana Islands;
(c) Puerto Rico; or
(d) United States Virgin Islands.
Section 3. Section 
61-2e-205
 is amended to read:
61-2e-205.
Division service fees -- Federal registry fees.
(1) The division, with the concurrence of the board, shall establish and collect fees, in
accordance with Section 
63J-1-504
, for services the division renders to carry out this chapter.
(2) 
(a)
 The division shall:
[
(a)
] 
(i)
 collect the annual registry fee established by the Appraisal Subcommittee
from:
[
(i)
] 
(A)
 each appraisal management company registered under this chapter; and
[
(ii)
] 
(B)
 each federally regulated appraisal management company; and
[
(b)
] 
(ii)
 transfer the fees collected under Subsection (2)(a) to the Appraisal
Subcommittee on a monthly basis.
(b) If an appraisal management company registered under this chapter fails to pay the
annual registry fee established by the Appraisal Subcommittee, the division may suspend or
revoke the appraisal management company's registration.
(3) If an appraisal management company pays a fee or cost to the division with a
negotiable instrument or any other payment method that is not honored, the division:
(a) may void the transaction for which the payment is submitted;
(b) may reverse the transaction, if the division does not receive full payment of the
applicable fee or cost; and
(c) shall suspend the appraisal management company's registration:
(i) beginning the day on which the payment is due; and
(ii) ending the day on which payment is made in full.
Section 4. Section 
61-2e-402
 is amended to read:
61-2e-402.
Enforcement -- Immunity for board.
(1) (a) The board may order disciplinary action, with the concurrence of the division,
against:
(i) an entity registered under this chapter;
(ii) an entity required to be registered under this chapter; or
(iii) a controlling person of an entity described in this Subsection (1)(a).
(b) The board may order disciplinary action, with the concurrence of the division,
against an entity, or controlling person of an entity, who is not registered under this chapter, if
the entity violated a provision of this chapter or rule made under this chapter:
(i) within four years before the day on which the division commences disciplinary
action; and
(ii) during a period in which:
(A) the provision or rule was in effect; and
(B) the entity was registered or required to be registered under this chapter.
[
(b)
] 
(c)
 If the board, with the concurrence of the division, makes a finding described in
Subsection (2) pursuant to an adjudicative proceeding conducted in accordance with Title 63G,
Chapter 4, Administrative Procedures Act, the board, with the concurrence of the division,
may:
(i) revoke, suspend, or place an entity's registration on probation;
(ii) deny an entity's original registration;
(iii) deny an entity's renewal registration;
(iv) in the case of denial or revocation of a registration, set a waiting period for an
applicant to apply for a registration under this chapter;
(v) order remedial education;
(vi) impose 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) issue a cease and desist order; or
(viii) do a combination of Subsections [
(1)(b)(i)
] 
(1)(c)(i)
 through (vii).
(2) Subsection (1) applies if the board finds, with the concurrence of the division, that a
person has engaged in, is attempting to, or has attempted to engage in:
(a) an act that violates this chapter;
(b) an act that violates a rule made under this chapter;
(c) procuring a registration for the person or another person by fraud,
misrepresentation, or deceit;
(d) paying money or attempting to pay money other than a fee provided for by this
chapter to an employee of the division to procure a registration under this chapter;
(e) an act or omission in the business of an appraisal management company that
constitutes dishonesty, fraud, or misrepresentation;
(f) unprofessional conduct as defined by statute or rule; or
(g) other conduct that constitutes dishonest dealing.
(3) (a) If the board, with the concurrence of the director, issues an order that orders a
fine or remedial education as part of a disciplinary action against a person, including a
stipulation and order, the board shall state in the order the deadline by which the person shall
comply with the fine or remedial education requirements.
(b) If a person fails to comply by the stated deadline, the person's registration shall be
immediately and automatically suspended:
(i) beginning 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.
(c) If a person fails to pay a fine required by an order, the division shall 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.
(4) To the extent permitted by federal law, the board, with the concurrence of the
division, may bring a disciplinary proceeding under this chapter for a violation of 15 U.S.C.
Sec. 1639e(i).
(5) A member of the board is immune from a civil action or criminal prosecution for a
disciplinary proceeding under this chapter if:
(a) the action is taken without malicious intent; and
(b) in the reasonable belief that the action taken was taken pursuant to the powers and
duties vested in a member of the board under this chapter.
Section 5. Section 
61-2f-103
 is amended to read:
61-2f-103.
Real Estate Commission.
(1) There is created within the division a Real Estate Commission.
(2)
 The commission shall:
(a) subject to concurrence by the division and in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, make rules for the administration of this chapter that are
not inconsistent with this chapter, including:
(i) licensing of:
(A) a principal broker;
(B) an associate broker; and
(C) a sales agent;
(ii) registration of:
(A) an entity; [
and
]
(B) an assumed name under which a person conducts business;
[
(B)
] 
(C)
 a branch office; 
and
(D) a property management company;
(iii) prelicensing and postlicensing education curricula;
(iv) examination procedures;
(v) the certification and conduct of:
(A) a real estate school;
(B) a course provider; or
(C) an instructor;
(vi) proper handling of money received by a licensee under this chapter;
(vii) brokerage office procedures and recordkeeping requirements;
(viii) property management;
(ix) standards of conduct for a licensee under this chapter; and
(x) if the commission, with the concurrence of the division, determines necessary, a
rule as provided in Subsection 
61-2f-306
(3) regarding a legal form;
(b) establish, with the concurrence of the division, a fee provided for in this chapter,
except a fee imposed under Part 5, Real Estate Education, Research, and Recovery Fund Act;
(c) conduct an administrative hearing not delegated by the commission to an
administrative law judge or the division relating to the:
(i) licensing of an applicant;
(ii) conduct of a licensee;
(iii) the certification or conduct of a real estate school, course provider, or instructor
regulated under this chapter; or
(iv) violation of this chapter by any person;
(d) with the concurrence of the director, impose a sanction as provided in Section
61-2f-404
;
(e) advise the director on the administration and enforcement of a matter affecting the
division and the real estate sales and property management industries;
(f) advise the director on matters affecting the division budget;
(g) advise and assist the director in conducting real estate seminars; and
(h) perform other duties as provided by this chapter.
[
(2)
] 
(3)
 (a) Except as provided in Subsection [
(2)
] 
(3)
(b), a state entity may not,
without the concurrence of the commission, make a rule that changes the rights, duties, or
obligations of buyers, sellers, or persons licensed under this chapter in relation to a real estate
transaction between private parties.
(b) Subsection [
(2)
] 
(3)
(a) does not apply to a rule made:
(i) under Title 31A, Insurance Code, or Title 7, Financial Institutions Act; or
(ii) by the Department of Commerce or any division or other rulemaking body within
the Department of Commerce.
[
(3)
] 
(4)
 (a) The commission shall be comprised of five members appointed by the
governor and approved by the Senate in accordance with Title 63G, Chapter 24, Part 2,
Vacancies.
(b) Four of the commission members shall:
(i) have at least five years' experience in the real estate business; and
(ii) hold an active principal broker, associate broker, or sales agent license.
(c) One commission member shall be a member of the general public.
(d) The governor may not appoint a commission member described in Subsection [
(3)
]
(4)
(b) who, at the time of appointment, resides in the same county in the state as another
commission member.
(e) At least one commission member described in Subsection [
(3)
] 
(4)
(b) shall at the
time of an appointment reside in a county that is not a county of the first or second class.
[
(4)
] 
(5)
 (a) Except as required by Subsection [
(4)
] 
(5)
(b), as terms of current
commission members expire, the governor shall appoint each new member or reappointed
member to a four-year term ending June 30.
(b) Notwithstanding the requirements of Subsection [
(4)
] 
(5)
(a), the governor shall, at
the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
commission members are staggered so that approximately half of the commission is appointed
every two years.
(c) Upon the expiration of the term of a member of the commission, the member of the
commission shall continue to hold office until a successor is appointed and qualified.
(d) A commission member may not serve more than two consecutive terms.
(e) Members of the commission shall annually select one member to serve as chair.
[
(5)
] 
(6)
 When a vacancy occurs in the membership for any reason, the governor, with
the advice and consent of the Senate, shall appoint a replacement for the unexpired term.
[
(6)
] 
(7)
 A member may not receive compensation or benefits for the member's service,
but may receive per diem and travel expenses in accordance with:
(a) Section 
63A-3-106
;
(b) Section 
63A-3-107
; and
(c) rules made by the Division of Finance pursuant to Sections 
63A-3-106
 and
63A-3-107
.
[
(7)
] 
(8)
 (a) The commission shall meet at least monthly.
(b) The director may call additional meetings:
(i) at the director's discretion;
(ii) upon the request of the chair; or
(iii) upon the written request of three or more commission members.
[
(8)
] 
(9)
 Three members of the commission constitute a quorum for the transaction of
business.
[
(9)
] 
(10)
 A member of the commission shall comply with the conflict of interest
provisions described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.
Section 6. Section 
61-2f-203
 is amended to read:
61-2f-203.
Licensing requirements.
(1) (a) (i) The division shall determine whether an applicant with a criminal history
qualifies for licensure.
(ii) If the division, acting under Subsection (1)(a)(i), denies or restricts a license or
places a license on probation, the applicant may petition the commission for de novo review of
the application.
(b) Except as provided in Subsection [
(5)
] 
(6)
, the commission shall determine all
other qualifications and requirements of an applicant for:
(i) a principal broker license;
(ii) an associate broker license; or
(iii) a sales agent license.
(c) The division, with the concurrence of the commission, shall require and pass upon
proof necessary to determine the honesty, integrity, truthfulness, reputation, and competency of
each applicant for an initial license or for renewal of an existing license.
(d) (i) The division, with the concurrence of the commission, shall require an applicant
for:
(A) a sales agent license to complete an approved educational program consisting of
the number of hours designated by rule made by the commission with the concurrence of the
division, except that the rule may not require less than 120 hours; and
(B) an associate broker or a principal broker license to complete an approved
educational program consisting of the number of hours designated by rule made by the
commission with the concurrence of the division, except that the rule may not require less than
120 hours.
(ii) An hour required by this section means 50 minutes of instruction in each 60
minutes.
(iii) The maximum number of program hours available to an individual is eight hours
per day.
(e) The division, with the concurrence of the commission, shall require the applicant to
pass an examination approved by the commission covering:
(i) the fundamentals of:
(A) the English language;
(B) arithmetic;
(C) bookkeeping; and
(D) real estate principles and practices;
(ii) this chapter;
(iii) the rules established by the commission with the concurrence of the division; and
(iv) any other aspect of Utah real estate license law considered appropriate.
(f) (i) Three years' full-time experience as a sales agent or its equivalent is required
before an applicant may apply for, and secure a principal broker or associate broker license in
this state.
(ii) The commission shall establish by rule made in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, subject to concurrence by the division, the
criteria by which the commission will accept experience or special education in similar fields
of business in lieu of the three years' experience.
(2) (a) The division, with the concurrence of the commission, may require an applicant
to furnish a sworn statement setting forth evidence satisfactory to the division of the applicant's
reputation and competency as set forth by rule.
(b) The division shall require an applicant to provide the applicant's social security
number, which is a private record under Subsection 
63G-2-302
(1)(i).
(3) (a) An individual who is not a resident of this state may be licensed in this state if
the person complies with this chapter.
(b) An individual who is not a resident of this state may be licensed as an associate
broker or sales agent in this state by:
(i) complying with this chapter; and
(ii) being employed or engaged as an independent contractor by or on behalf of a
principal broker who is licensed in this state, regardless of whether the principal broker is a
resident of this state.
(4) The division, with the concurrence of the commission, may enter into a reciprocal
licensing agreement with another jurisdiction for the licensure of a principal broker, an
associate broker, or a sales agent, if the jurisdiction's requirements and standards for the license
are substantially similar to those of this state.
[
(4)
] 
(5)
 (a) The division and commission shall treat an application to be relicensed of
an applicant whose real estate license is revoked as an original application.
(b) In the case of an applicant for a new license as a principal broker or associate
broker, the applicant is not entitled to credit for experience gained before the revocation of a
real estate license.
[
(5)
] 
(6)
 (a) Notwithstanding Subsection (1)(b), the commission may delegate to the
division the authority to:
(i) review a class or category of applications for initial or renewed licenses;
(ii) determine whether an applicant meets the licensing criteria in Subsection (1); and
(iii) approve or deny a license application without concurrence by the commission.
(b) (i) 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 de novo
review of the application.
(ii) An applicant who is denied licensure pursuant to this Subsection [
(5)
] 
(6)
 may seek
agency review by the executive director only after the commission has reviewed the division's
denial of the applicant's application.
Section 7. Section 
61-2f-206
 is amended to read:
61-2f-206.
Registration of person or branch office -- Certification of education
providers and courses -- Specialized licenses.
(1) (a) [
An entity
] 
A person
 may not engage in an activity described in Section
61-2f-201
, unless [
it
] 
the person
 is registered with the division.
(b) To register with the division under this Subsection (1), [
an entity
] 
a person
 shall
submit to the division:
(i) an application in a form required by the division;
(ii) evidence of an affiliation with a principal broker;
(iii) evidence that the [
entity
] 
person
 is registered and in good standing with the
Division of Corporations and Commercial Code; and
(iv) a registration fee established by the commission with the concurrence of the
division under Section 
63J-1-504
.
(c) The division may terminate [
an entity's
] 
a person's
 registration if:
(i) the [
entity's
] 
person's
 registration with the Division of Corporations and
Commercial Code has been expired for at least three years; and
(ii) the [
entity's
] 
person's
 license with the division has been inactive for at least three
years.
(2) (a) A principal broker shall register with the division each of the principal broker's
branch offices.
(b) To register a branch office with the division under this Subsection (2), a principal
broker shall submit to the division:
(i) an application in a form required by the division; and
(ii) a registration fee established by the commission with the concurrence of the
division under Section 
63J-1-504
.
(3) (a) In accordance with rules made by the commission with the concurrence of the
division 
and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act
,
the division shall certify:
(i) a real estate school;
(ii) a course provider; or
(iii) an instructor.
(b) In accordance with rules made by the commission 
in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act
, subject to concurrence by the division, the
division shall certify a continuing education course that is required under this chapter.
(4) Except as provided [
by rule
] 
under this chapter or by rule the commission makes in
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, a principal broker
may not be responsible for more than one registered [
entity
] 
person
 at the same time.
[
(5) A principal broker may simultaneously supervise one main office and up to two
additional branch offices.
]
[
(6) A branch broker may simultaneously supervise up to three branch offices.
]
(5) A principal broker:
(a) shall exercise active and reasonable supervision of the principal broker's main
office in accordance with this chapter and rules the commission makes in accordance with Title
63G, Chapter 3, Utah Administrative Rulemaking Act; and
(b) may supervise a branch office affiliated with the principal broker at the same time
the principal broker exercises the supervision required under Subsection (5)(a).
(6) (a) A principal broker may designate a branch broker to supervise a branch office
affiliated with the principal broker.
(b) A branch broker shall exercise active and reasonable supervision, in accordance
with this chapter and rules the commission makes in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, of each branch office the principal broker designates the
branch broker to supervise.
(7) (a) In addition to issuing a principal broker license, associate broker license, or
sales agent license authorizing the performance of an act set forth in Section 
61-2f-201
, the
division may issue a specialized sales license or specialized property management license with
the scope of practice limited to the specialty.
(b) An individual may hold a specialized license in addition to a license as a principal
broker, associate broker, or a sales agent.
(c) A sales agent who is affiliated with a dual broker may act as a property
management sales agent if:
(i) the dual broker designates the sales agent as a property management sales agent; and
(ii) the sales agent pays to the division a property management sales agent designation
fee in an amount determined by the division in accordance with Section 
63J-1-504
.
(d) A property management sales agent may simultaneously provide both property
management services and real estate sales services under the supervision of a dual broker as
provided by the commission with the concurrence of the division by rule made in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(8) The commission may determine, by rule made in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, subject to concurrence by the division,
licensing requirements related to this section for a principal broker, associate broker, sales
agent, dual broker, property management sales agent, or for a specialized license described in
Subsection (7), including:
(a) prelicensing and postlicensing education requirements;
(b) examination requirements;
(c) affiliation with real estate brokerages or property management companies;
(d) property management sales agent:
(i) designation procedures;
(ii) allowable scope of practice; and
(iii) division fees;
(e) what constitutes 
active and
 reasonable supervision for:
(i) a principal broker when supervising a branch broker or sales agent; and
(ii) a branch broker when supervising a sales agent; and
(f) other licensing procedures.
Section 8. Section 
61-2g-204
 is amended to read:
61-2g-204.
Real Estate Appraiser Licensing and Certification Board.
(1) (a) There is established a Real Estate Appraiser Licensing and Certification Board
that consists of [
five
] 
seven
 regular members as follows:
(i) one state-licensed or state-certified appraiser who may be either a residential or
general licensee or certificate holder;
(ii) one state-certified residential appraiser;
(iii) one state-certified general appraiser;
(iv) one member who is certified as either a state-certified residential appraiser or a
state-certified general appraiser; [
and
]
(v) one member who represents an appraisal management company registered in
accordance with Chapter 2e, Appraisal Management Company Registration and Regulation
Act;
(vi) one member:
(A) who is licensed or represents a person licensed under Chapter 2c, Utah Residential
Mortgage Practices and Licensing Act; or
(B) who represents a mortgage lender, as defined in Section 
70D-2-102
, operating in
the state in accordance with Title 70D, Chapter 2, Mortgage Lending and Servicing Act; and
[
(v)
] 
(vii)
 one member of the general public.
(b) A state-licensed or state-certified appraiser may be appointed as an alternate
member of the board.
(c) The governor shall appoint all members of the board with the advice and consent of
the Senate in accordance with Title 63G, Chapter 24, Part 2, Vacancies.
(2) (a) Except as required by Subsection (2)(b), as terms of current board members
expire, the governor shall appoint each new member or reappointed member to a four-year
term beginning on July 1.
(b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
time of appointment or reappointment, adjust the length of terms to ensure that the terms of
board members are staggered so that approximately half of the board is appointed every two
years.
(c) Upon the expiration of a member's term, a member of the board shall continue to
hold office until the appointment and qualification of the member's successor.
(d) A person may not serve as a member of the board for more than two consecutive
terms.
(3) (a) When a vacancy occurs in the membership for any reason, the replacement shall
be appointed for the unexpired term.
(b) The governor may remove a member for cause.
(4) The public member of the board may not be licensed or certified under this chapter.
(5) The board shall meet at least quarterly to conduct its business. The division shall
give public notice of a board meeting.
(6) The members of the board shall elect a chair annually from among the members to
preside at board meetings.
(7) A member may not receive compensation or benefits for the member's service, but
may receive per diem and travel expenses in accordance with:
(a) Section 
63A-3-106
;
(b) Section 
63A-3-107
; and
(c) rules made by the Division of Finance pursuant to Sections 
63A-3-106
 and
63A-3-107
.
(8) (a) [
Three
] 
Four
 members of the board shall constitute a quorum for the transaction
of business.
(b) If a quorum of members is unavailable for any meeting, the alternate member of the
board, if any, shall serve as a regular member of the board for that meeting if with the presence
of the alternate member a quorum is present at the meeting.
(c) A member of the board shall comply with the conflict of interest provisions
described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.