Utah 2025 Regular Session

Utah House Bill HB0337 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy H.B. 337
	1	+	02-27 15:35 2nd Sub. (Gray) H.B. 337
	2	+	Jordan D. Teuscher proposes the following substitute bill:
2	3		1
3	4		Property Manager Requirements
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: Jordan D. Teuscher
7	8		Senate Sponsor: Calvin R. Musselman
8	9		2
9	10
10	11		3
11	12		LONG TITLE
12	13		4
13	14		General Description:
14	15		5
15	16		This bill modifies the Utah Real Estate Licensing and Practices Act.
16	17		6
17	18		Highlighted Provisions:
18	19		7
19	20		This bill:
20	21		8
21	22		▸ defines terms;
22	23		9
23	24		▸ grants the Real Estate Commission (commission) authority to make administrative rules
24	25		10
25	26		relating to property managers;
26	27		11
27	28		▸ requires an individual to hold a license as a property manager before engaging in property
28	29		12
29	30		management;
30	31		13
31	32		▸ exempts certain individuals from licensure under this act;
32	33		14
33	34		▸ requires that the commission and Division of Real Estate determine the qualifications and
34	35		15
35	36		requirements for an applicant for a property manager license;
36	37		16
37	38		▸ allows an individual with an active broker, associate broker, or sales agent license to
38	39		17
39	40		obtain a property manager license without meeting certain examination and education
40	41		18
41	42		requirements;
42	43		19
43	44		▸ requires that an applicant for a property manager license pay a licensing fee;
44	45		20
45	46		▸ repeals provisions authorizing certain individuals to act as a property manager;
46	47		21
47	48		▸ authorizes a property manager to fill out any form or document related to property
48	49		22
49	50		management;
50	51		23
51	52		▸ provides parameters for what a property manager may do when engaging in property
52	53		24
53	54		management;
54	55		25
55	56		▸ requires that a property manager associate with a real estate trust account;
56	57		26
57	58		▸ exempts a property manager with a security bond that protects at least 30% of estimated
58	59		27
59		-	client funds from the requirement to associate with a real estate trust account; and ~~H.B. 337 Enrolled Copy~~
	60	+	client funds from the requirement to associate with a real estate trust account; and
60	61		28
61	62		▸ makes technical and conforming changes.
	63	+	2nd Sub. H.B. 337 2nd Sub. (Gray) H.B. 337 02-27 15:35
62	64		29
63	65		Money Appropriated in this Bill:
64	66		30
65	67		None
66	68		31
67	69		Other Special Clauses:
68	70		32
69	71		This bill provides a special effective date.
70	72		33
71	73		Utah Code Sections Affected:
72	74		34
73	75		AMENDS:
74	76		35
75	77		61-2f-102, as last amended by Laws of Utah 2024, Chapter 227
76	78		36
77	79		61-2f-103, as last amended by Laws of Utah 2022, Chapter 204
78	80		37
79	81		61-2f-201, as renumbered and amended by Laws of Utah 2010, Chapter 379
80	82		38
81	83		61-2f-202, as last amended by Laws of Utah 2022, Chapter 204
82	84		39
83	85		61-2f-203, as last amended by Laws of Utah 2022, Chapter 204
84	86		40
85	87		61-2f-204, as last amended by Laws of Utah 2022, Chapter 204
86	88		41
87	89		61-2f-206, as last amended by Laws of Utah 2022, Chapter 204
88	90		42
89	91		ENACTS:
90	92		43
91	93		61-2f-202.5, Utah Code Annotated 1953
92	94		44
93	95		61-2f-307, Utah Code Annotated 1953
94	96		45
95	97		61-2f-411, Utah Code Annotated 1953
96	98		46
97	99
98	100		47
99	101		Be it enacted by the Legislature of the state of Utah:
100	102		48
101	103		Section 1. Section 61-2f-102 is amended to read:
102	104		49
103	105		61-2f-102 . Definitions.
104	106		50
105	107		As used in this chapter:
106	108		51
107	109		(1) "Associate broker" means an individual who is:
108	110		52
109	111		(a) employed or engaged as an independent contractor by or on behalf of a principal
110	112		53
111	113		broker to perform an act described in Subsection [(20) ] (19) for valuable
112	114		54
113	115		consideration; and
114	116		55
115	117		(b) licensed or is required to be licensed under this chapter as an associate broker.
116	118		56
117	119		(2) "Branch broker" means an associate broker who manages a principal broker's branch
118	120		57
119	121		office under the supervision of the principal broker.
120	122		58
121	123		(3) "Branch office" means a principal broker's real estate brokerage office that is not the
122	124		59
123	125		principal broker's main office.
124	126		60
125	127		(4) "Business day" means a day other than:
126	128		61
127	129		(a) a Saturday;
128		-	- 2 - Enrolled Copy H.B. 337
129	130		62
130	131		(b) a Sunday; or
	132	+	- 2 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
131	133		63
132	134		(c) a federal or state holiday.
133	135		64
134	136		(5) "Business opportunity" means the sale, lease, or exchange of any business that includes
135	137		65
136	138		an interest in real estate.
137	139		66
138	140		(6) "Commission" means the Real Estate Commission established under this chapter.
	141	+	66a
	142	+	Ŝ→ (7) "Common interest association" means the same as that term is defined in
	143	+	66b
	144	+	Section 57-1-46.
139	145		67
140		-	(7) "Common interest association" means the same as that term is defined in Section
	146	+	[(7)] (8) ←Ŝ "Concurrence" means the entities given a concurring role must jointly agree
	147	+	67a
	148	+	for action
141	149		68
142		-	~~57-1-46~~.
	150	+	to be taken.
143	151		69
144		-	[(7)] (8) "Concurrence" means the entities given a concurring role must jointly agree for
	152	+	Ŝ→ [(8) "Condominium homeowners' association" means the condominium unit owners
	153	+	69a
	154	+	acting
145	155		70
146		-	~~action to be taken~~.
	156	+	as a group in accordance with declarations and bylaws.] ←Ŝ
147	157		71
148		-	[(8) "Condominium ~~homeowners' association~~" means ~~the~~ condominium ~~unit owners acting~~
	158	+	(9)(a) "Condominium hotel" means one or more condominium units that are operated as
149	159		72
150		-	as a ~~group in accordance with declarations and bylaws~~.]
	160	+	a hotel.
151	161		73
152		-	(~~9)(a~~) "Condominium hotel" ~~means one or more~~ condominium units ~~that are operated as~~
	162	+	(b) "Condominium hotel" does not mean a hotel consisting of condominium units, all of
153	163		74
154		-	a ~~hotel~~.
	164	+	which are owned by a single entity.
155	165		75
156		-	(b) "Condominium ~~hotel~~" ~~does not mean a hotel consisting of condominium units,~~ ~~all of~~
	166	+	(10) "Condominium unit" means the same as that term is defined in Section 57-8-3.
157	167		76
158		-	~~which are owned by a single entity~~.
	168	+	(11) "Director" means the director of the Division of Real Estate.
159	169		77
160		-	(10) "~~Condominium unit~~" means the ~~same as that term is defined in Section 57-8-3~~.
	170	+	(12) "Division" means the Division of Real Estate.
161	171		78
162		-	(11) "~~Director~~" means ~~the director~~ of ~~the Division of~~ Real Estate.
	172	+	[(13) "Dual broker" means a principal broker of a real estate sales brokerage who obtains
163	173		79
164		-	~~(12) "Division" means~~ the Division of ~~Real Estate.~~
	174	+	from the division a dual broker license in order to function as the principal broker of a
165	175		80
166		-	~~[(13) "Dual~~ ~~broker" means~~ a ~~principal broker of a~~ real estate sales ~~brokerage who obtains~~
	176	+	property management company that is a separate entity from the real estate sales
167	177		81
168		-	~~from the division a dual broker license in order to function as the principal broker of a~~
	178	+	brokerage.]
169	179		82
170		-	~~property management company that is a separate entity from the real estate sales~~
	180	+	[(14)] (13) "Entity" means:
171	181		83
172		-	~~brokerage.]~~
	182	+	(a) a corporation;
173	183		84
174		-	[(~~14)] (13~~) ~~"Entity" means:~~
	184	+	(b) a partnership;
175	185		85
176		-	(a) a ~~corporation~~;
	186	+	(c) a limited liability company;
177	187		86
178		-	(b) a ~~partnership~~;
	188	+	(d) a company;
179	189		87
180		-	(c) ~~a limited liability company~~;
	190	+	(e) an association;
181	191		88
182		-	(d) a ~~company~~;
	192	+	(f) a joint venture;
183	193		89
184		-	(e) ~~an association~~;
	194	+	(g) a business trust;
185	195		90
186		-	(f) a ~~joint venture;~~
	196	+	(h) a trust; or
187	197		91
188		-	(g) a ~~business trust;~~
	198	+	(i) any organization similar to an entity described in Subsections [(14)(a)] (13)(a)
189	199		92
190		-	(h) a trust; or
	200	+	through (h).
	201	+	- 3 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
191	202		93
192		-	~~(i) any organization similar to an entity described in Subsections~~ [(~~14)(a~~)] (13)~~(a)~~
	203	+	[(15)] (14) "Executive director" means the director of the Department of Commerce.
193	204		94
194		-	~~through~~ (h).
	205	+	[(16)] (15) "Foreclosure rescue" means, for compensation or with the expectation of
195	206		95
196		-	[(15)] (14) "Executive director" means the director of the Department of Commerce.
197		-	- 3 - H.B. 337 Enrolled Copy
	207	+	receiving valuable consideration[, to:] :
198	208		96
199		-	[(~~16)] (15~~) ~~"Foreclosure rescue" means~~, ~~for compensation~~ or ~~with the expectation of~~
	209	+	[(a) engage, or offer to engage, in ]
200	210		97
201		-	~~receiving valuable consideration[, to~~:~~] :~~
	211	+	(a) an act that:
202	212		98
203		-	[(a) ~~engage, or offer to engage,~~ in ]
	213	+	(i) the person represents will assist a borrower in preventing a foreclosure; and
204	214		99
205		-	(a) ~~an act that:~~
	215	+	(ii) relates to a transaction involving the transfer of title to residential real property; or
206	216		100
207		-	(i) ~~the~~ person ~~represents will assist a borrower in preventing a foreclosure; and~~
	217	+	(b) as an employee or agent of another person:
208	218		101
209		-	(ii) ~~relates to~~ a ~~transaction involving~~ the ~~transfer of title to residential real property; or~~
	219	+	(i) [solicit, or offer] a solicitation or an offer that the other person will engage in an
210	220		102
	221	+	act described in Subsection [(16)(a)] (15)(a); or
	222	+	103
	223	+	(ii) [negotiate] negotiation of the terms in relationship to an act described in
	224	+	104
	225	+	Subsection [(16)(a)] (15)(a).
	226	+	105
	227	+	[(17)] (16) "Loan modification assistance" means, for compensation or with the expectation
	228	+	106
	229	+	of receiving valuable consideration[, to]:
	230	+	107
	231	+	(a) [act,] an act, or an offer to act, on behalf of a person to:
	232	+	108
	233	+	(i) obtain a loan term of a residential mortgage loan that is different from an existing
	234	+	109
	235	+	loan term including:
	236	+	110
	237	+	(A) an increase or decrease in an interest rate;
	238	+	111
	239	+	(B) a change to the type of interest rate;
	240	+	112
	241	+	(C) an increase or decrease in the principal amount of the residential mortgage
	242	+	113
	243	+	loan;
	244	+	114
	245	+	(D) a change in the number of required period payments;
	246	+	115
	247	+	(E) an addition of collateral;
	248	+	116
	249	+	(F) a change to, or addition of, a prepayment penalty;
	250	+	117
	251	+	(G) an addition of a cosigner; or
	252	+	118
	253	+	(H) a change in persons obligated under the existing residential mortgage loan; or
	254	+	119
	255	+	(ii) a substitute of a new residential mortgage loan for an existing residential
	256	+	120
	257	+	mortgage loan; or
	258	+	121
211	259		(b) as an employee or agent of another person:
212		-	~~103~~
	260	+	122
213	261		(i) [solicit, or offer] a solicitation or an offer that the other person will engage in an
214		-	~~104~~
215		-	act described in Subsection [(16)(a)] (15)(a); or
216		-	~~105~~
	262	+	123
	263	+	act described in Subsection [(17)(a)] (16)(a); or
	264	+	124
217	265		(ii) [negotiate] negotiation of the terms in relationship to an act described in
218		-	106
219		-	Subsection [(16)(a)] (15)(a).
220		-	107
221		-	[(17)] (16) "Loan modification assistance" means, for compensation or with the expectation
222		-	108
223		-	of receiving valuable consideration[, to]:
224		-	109
225		-	(a) [act,] an act, or an offer to act, on behalf of a person to:
226		-	110
227		-	(i) obtain a loan term of a residential mortgage loan that is different from an existing
228		-	111
229		-	loan term including:
230		-	112
231		-	(A) an increase or decrease in an interest rate;
232		-	113
233		-	(B) a change to the type of interest rate;
234		-	114
235		-	(C) an increase or decrease in the principal amount of the residential mortgage
236		-	115
237		-	loan;
238		-	116
239		-	(D) a change in the number of required period payments;
240		-	117
241		-	(E) an addition of collateral;
242		-	118
243		-	(F) a change to, or addition of, a prepayment penalty;
244		-	119
245		-	(G) an addition of a cosigner; or
246		-	120
247		-	(H) a change in persons obligated under the existing residential mortgage loan; or
248		-	121
249		-	(ii) a substitute of a new residential mortgage loan for an existing residential
250		-	122
251		-	mortgage loan; or
252		-	123
253		-	(b) as an employee or agent of another person:
254		-	124
255		-	(i) [solicit, or offer] a solicitation or an offer that the other person will engage in an
256	266		125
257		-	~~act described in~~ Subsection [(17)(a)] (16)(a)~~; or~~
	267	+	Subsection [(17)(a)] (16)(a).
258	268		126
259		-	(ii) [negotiate] negotiation of the terms in relationship to an act described in
	269	+	[(18)] (17) "Main office" means the address [which] that a principal broker designates with
	270	+	- 4 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
260	271		127
261		-	~~Subsection [(17)(a)] (16)(a)~~.
	272	+	the division as the principal broker's primary brokerage office.
262	273		128
263		-	[(18)] (17) "~~Main office~~" means ~~the address [which] that a principal broker designates with~~
	274	+	[(19)] (18) "Person" means an individual or entity.
264	275		129
265		-	the division as the principal broker's primary brokerage office.
266		-	- 4 - Enrolled Copy H.B. 337
	276	+	[(20)] (19) "Principal broker" means an individual who[ ] :
267	277		130
268		-	[(~~19)] (18~~) ~~"Person" means an individual~~ or ~~entity.~~
	278	+	(a) is licensed or required to be licensed as a principal broker under this chapter[ who:] ;
269	279		131
270		-	~~[(20)] (19) "Principal broker" means an individual who[ ] :~~
	280	+	and
271	281		132
272		-	(a) ~~is licensed~~ or ~~required to be licensed~~ as a ~~principal broker under this chapter[ who:] ;~~
	282	+	[(a)] (b)(i) sells or lists for sale real estate, including real estate being sold as part of a
273	283		133
	284	+	foreclosure rescue, or a business opportunity with the expectation of receiving
	285	+	134
	286	+	valuable consideration;
	287	+	135
	288	+	[(b)] (ii) buys, exchanges, or auctions real estate, an option on real estate, a business
	289	+	136
	290	+	opportunity, or an improvement on real estate with the expectation of receiving
	291	+	137
	292	+	valuable consideration;
	293	+	138
	294	+	[(c)] (iii) advertises, offers, attempts, or otherwise holds the individual out to be
	295	+	139
	296	+	engaged in the business described in Subsection [(20)(a) ] (19)(a) or (b)(ii);
	297	+	140
	298	+	[(d)] (iv) is employed by or on behalf of the owner of real estate or by a prospective
	299	+	141
	300	+	purchaser of real estate and performs an act described in Subsection [(20)(a), ]
	301	+	142
	302	+	(19(b)(i), whether the individual's compensation is at a stated salary, a
	303	+	143
	304	+	commission basis, upon a salary and commission basis, or otherwise;
	305	+	144
	306	+	[(e)] (v) with the expectation of receiving valuable consideration, manages property
	307	+	145
	308	+	owned by another person;
	309	+	146
	310	+	[(f)] (vi) advertises or otherwise holds the individual out to be engaged in property
	311	+	147
	312	+	management;
	313	+	148
	314	+	[(g)] (vii) with the expectation of receiving valuable consideration, assists or directs in
	315	+	149
	316	+	the procurement of prospects for or the negotiation of a transaction listed in
	317	+	150
	318	+	Subsections [(20)(a)] (19)(b)(i) and [(e)] (v);
	319	+	151
	320	+	[(h)] (viii) except for a mortgage lender, title insurance producer, or an employee of a
	321	+	152
	322	+	mortgage lender or title insurance producer, assists or directs in the closing of a
	323	+	153
	324	+	real estate transaction with the expectation of receiving valuable consideration;
	325	+	154
	326	+	[(i)] (ix) engages in foreclosure rescue; or
	327	+	155
	328	+	[(j)] (x) advertises, offers, attempts, or otherwise holds the person out as being
	329	+	156
	330	+	engaged in foreclosure rescue.
	331	+	157
	332	+	[(21)] (20)(a) "Property management" means [engaging in] the management of real estate
	333	+	158
	334	+	owned by another person, with the expectation of receiving valuable consideration,[
	335	+	159
	336	+	the management of real estate owned by another person] or advertising or otherwise
	337	+	160
	338	+	claiming to be engaged in [property management] the management of real estate
	339	+	- 5 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
	340	+	161
	341	+	owned by another person, by:
	342	+	162
	343	+	(i) advertising for, arranging, negotiating, offering, or otherwise attempting or
	344	+	163
	345	+	participating in a transaction calculated to secure the rental or leasing of real estate;
	346	+	164
	347	+	(ii) collecting, agreeing, offering, or otherwise attempting to collect rent for the real
	348	+	165
	349	+	estate[ and accounting for and disbursing the money collected]; or
	350	+	166
	351	+	(iii) [authorizing expenditures for repairs to the real estate] signing a lease agreement
	352	+	167
	353	+	or an addendum with a tenant.
	354	+	168
	355	+	(b) "Property management" does not include:
	356	+	169
	357	+	(i) hotel or motel management;
	358	+	170
	359	+	(ii) rental of tourist accommodations, including hotels, motels, tourist homes,
	360	+	171
	361	+	condominiums, condominium hotels, mobile home park accommodations,
	362	+	172
	363	+	campgrounds, or similar public accommodations for a period of less than 30
	364	+	173
	365	+	consecutive days, and the management activities associated with these rentals; or
	366	+	174
	367	+	(iii) the leasing or management of surface or subsurface minerals or oil and gas
	368	+	175
	369	+	interests, if the leasing or management is separate from a sale or lease of the
	370	+	176
	371	+	surface estate.
	372	+	177
	373	+	[(22) "Property management sales agent" means a sales agent who:]
	374	+	178
	375	+	[(a) is affiliated with a dual broker through the dual broker's property management
	376	+	179
	377	+	company; and]
	378	+	180
	379	+	[(b) is designated by the dual broker as a property management sales agent.]
	380	+	181
	381	+	(21) "Property manager" means an individual who:
	382	+	182
	383	+	(a) is licensed or required to be licensed as a property manager under this chapter; and
	384	+	183
	385	+	(b)(i) engages in property management; or
	386	+	184
	387	+	(ii) advertises or otherwise holds the individual out to be engaged in property
	388	+	185
	389	+	management.
	390	+	186
	391	+	[(23)] (22) "Real estate" includes leaseholds and business opportunities involving real
	392	+	187
	393	+	property.
	394	+	188
	395	+	[(24)] (23)(a) "Regular salaried employee" means an individual:
	396	+	189
	397	+	(i) who performs a service for wages or other remuneration[,] ; and
	398	+	190
	399	+	(ii) whose employer withholds federal employment taxes under a contract of hire,
	400	+	191
	401	+	written or oral, express or implied.
	402	+	192
	403	+	(b) "Regular salaried employee" does not include an individual who performs services
	404	+	193
	405	+	on a project-by-project basis or on a commission basis.
	406	+	194
	407	+	[(25)] (24) "Reinstatement" means [restoring] the restoration of a license that has expired or
	408	+	- 6 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
	409	+	195
	410	+	has been suspended.
	411	+	196
	412	+	[(26)] (25) "Reissuance" means the process by which [a licensee] an individual may obtain a
	413	+	197
	414	+	license following revocation of the license.
	415	+	198
	416	+	[(27)] (26) "Renewal" means [extending] the extension of a license for an additional
	417	+	199
	418	+	licensing period on or before the date the license expires.
	419	+	200
	420	+	[(28)] (27) "Sales agent" means an individual who is:
	421	+	201
	422	+	(a) affiliated with a principal broker, either as an independent contractor or an employee
	423	+	202
	424	+	as provided in Section 61-2f-303, to perform for valuable consideration an act
	425	+	203
	426	+	described in Subsection [(20)] (19); and
	427	+	204
	428	+	(b) licensed, or required to be licensed, under this chapter as a sales agent.
	429	+	205
	430	+	[(29)] (28) "Vulnerable adult" means the same as that term is defined in Section 26B-6-201.
	431	+	206
	432	+	Section 2. Section 61-2f-103 is amended to read:
	433	+	207
	434	+	61-2f-103 . Real Estate Commission.
	435	+	208
	436	+	(1) There is created within the division a Real Estate Commission.
	437	+	209
	438	+	(2) The commission shall:
	439	+	210
	440	+	(a) subject to concurrence by the division and in accordance with Title 63G, Chapter 3,
	441	+	211
	442	+	Utah Administrative Rulemaking Act, make rules for the administration of this
	443	+	212
	444	+	chapter that are not inconsistent with this chapter, including:
	445	+	213
	446	+	(i) licensing of:
	447	+	214
	448	+	(A) a principal broker;
	449	+	215
	450	+	(B) an associate broker;[ and]
	451	+	216
	452	+	(C) a sales agent; and
	453	+	217
	454	+	(D) a property manager;
	455	+	218
	456	+	(ii) registration of:
	457	+	219
	458	+	(A) an entity;
	459	+	220
	460	+	(B) an assumed name under which a person conducts business;
	461	+	221
	462	+	(C) a branch office; and
	463	+	222
	464	+	(D) a property management company;
	465	+	223
	466	+	(iii) prelicensing and postlicensing education curricula;
	467	+	224
	468	+	(iv) examination procedures;
	469	+	225
	470	+	(v) the certification and conduct of:
	471	+	226
	472	+	(A) a real estate school;
	473	+	227
	474	+	(B) a course provider; or
	475	+	228
	476	+	(C) an instructor;
	477	+	- 7 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
	478	+	229
	479	+	(vi) proper handling of money received by a licensee under this chapter;
	480	+	230
	481	+	(vii) brokerage office procedures and recordkeeping requirements;
	482	+	231
	483	+	(viii) property management;
	484	+	232
	485	+	(ix) standards of conduct for a licensee under this chapter;
	486	+	233
	487	+	(x) if the commission, with the concurrence of the division, determines necessary, a
	488	+	234
	489	+	rule as provided in Subsection 61-2f-306(3) regarding a legal form;
	490	+	235
	491	+	(xi) the qualification and designation of an acting principal broker in the event a
	492	+	236
	493	+	principal broker dies, is incapacitated, or is unable to perform the duties of a
	494	+	237
	495	+	principal broker, as described in Section 61-2f-202; and
	496	+	238
	497	+	(xii) giving or paying an inducement gift or a closing gift to a buyer or seller in a real
	498	+	239
	499	+	property transaction;
	500	+	240
	501	+	(b) establish, with the concurrence of the division, a fee provided for in this chapter,
	502	+	241
	503	+	except a fee imposed under Part 5, Real Estate Education, Research, and Recovery
	504	+	242
	505	+	Fund Act;
	506	+	243
	507	+	(c) conduct an administrative hearing not delegated by the commission to an
	508	+	244
	509	+	administrative law judge or the division relating to the:
	510	+	245
	511	+	(i) licensing of an applicant;
	512	+	246
	513	+	(ii) conduct of a licensee;
	514	+	247
	515	+	(iii) the certification or conduct of a real estate school, course provider, or instructor
	516	+	248
	517	+	regulated under this chapter; or
	518	+	249
	519	+	(iv) violation of this chapter by any person;
	520	+	250
	521	+	(d) with the concurrence of the director, impose a sanction as provided in Section
	522	+	251
	523	+	61-2f-404;
	524	+	252
	525	+	(e) advise the director on the administration and enforcement of a matter affecting the
	526	+	253
	527	+	division and the real estate sales and property management industries;
	528	+	254
	529	+	(f) advise the director on matters affecting the division budget;
	530	+	255
	531	+	(g) advise and assist the director in conducting real estate seminars; and
	532	+	256
	533	+	(h) perform other duties as provided by this chapter.
	534	+	257
	535	+	(3)(a) Except as provided in Subsection (3)(b), a state entity may not, without the
	536	+	258
	537	+	concurrence of the commission, make a rule that changes the rights, duties, or
	538	+	259
	539	+	obligations of buyers, sellers, or persons licensed under this chapter in relation to a
	540	+	260
	541	+	real estate transaction between private parties.
	542	+	261
	543	+	(b) Subsection (3)(a) does not apply to a rule made:
	544	+	262
	545	+	(i) under Title 31A, Insurance Code, or Title 7, Financial Institutions Act; or
	546	+	- 8 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
	547	+	263
	548	+	(ii) by the Department of Commerce or any division or other rulemaking body within
	549	+	264
	550	+	the Department of Commerce.
	551	+	265
	552	+	(4)(a) The commission [shall be comprised] consists of five members appointed by the
	553	+	266
	554	+	governor and approved by the Senate in accordance with Title 63G, Chapter 24, Part
	555	+	267
	556	+	2, Vacancies.
	557	+	268
	558	+	(b) Four of the commission members shall:
	559	+	269
	560	+	(i) have at least five years' experience in the real estate business; and
	561	+	270
	562	+	(ii) hold an active principal broker, associate broker, or sales agent license.
	563	+	271
	564	+	(c) One commission member shall be a member of the general public.
	565	+	272
	566	+	(d) The governor may not appoint a commission member described in Subsection (4)(b)
	567	+	273
	568	+	who, at the time of appointment, resides in the same county in the state as another
	569	+	274
	570	+	commission member.
	571	+	275
	572	+	(e) At least one commission member described in Subsection (4)(b) shall at the time of
	573	+	276
	574	+	an appointment reside in a county that is not a county of the first or second class.
	575	+	277
	576	+	(5)(a) Except as required by Subsection (5)(b), as terms of current commission members
	577	+	278
	578	+	expire, the governor shall appoint each new member or reappointed member to a
	579	+	279
	580	+	four-year term ending June 30.
	581	+	280
	582	+	(b) [Notwithstanding the requirements of Subsection (5)(a), the] The governor shall, at
	583	+	281
	584	+	the time of appointment or reappointment, adjust the length of terms to ensure that
	585	+	282
	586	+	the terms of commission members are staggered so that approximately half of the
	587	+	283
	588	+	commission is appointed every two years.
	589	+	284
	590	+	(c) Upon the expiration of the term of a member of the commission, the member of the
	591	+	285
	592	+	commission shall continue to hold office until a successor is appointed and qualified.
	593	+	286
	594	+	(d) A commission member may not serve more than two consecutive terms.
	595	+	287
	596	+	(e) Members of the commission shall annually select one member to serve as chair.
	597	+	288
	598	+	(6) When a vacancy occurs in the membership for any reason, the governor, with the advice
	599	+	289
	600	+	and consent of the Senate, shall appoint a replacement for the unexpired term.
	601	+	290
	602	+	(7) A member may not receive compensation or benefits for the member's service, but may
	603	+	291
	604	+	receive per diem and travel expenses in accordance with:
	605	+	292
	606	+	(a) Section 63A-3-106;
	607	+	293
	608	+	(b) Section 63A-3-107; and
	609	+	294
	610	+	(c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
	611	+	295
	612	+	63A-3-107.
	613	+	296
	614	+	(8)(a) The commission shall meet at least monthly.
	615	+	- 9 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
	616	+	297
	617	+	(b) The director may call additional meetings:
	618	+	298
	619	+	(i) at the director's discretion;
	620	+	299
	621	+	(ii) upon the request of the chair; or
	622	+	300
	623	+	(iii) upon the written request of three or more commission members.
	624	+	301
	625	+	(9) Three members of the commission constitute a quorum for the transaction of business.
	626	+	302
	627	+	(10) A member of the commission shall comply with the conflict of interest provisions
	628	+	303
	629	+	described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.
	630	+	304
	631	+	Section 3. Section 61-2f-201 is amended to read:
	632	+	305
	633	+	61-2f-201 . License required.
	634	+	306
	635	+	(1) Unless a person is licensed under this chapter, it is unlawful for the person to do the
	636	+	307
	637	+	following with respect to real estate located in this state:
	638	+	308
	639	+	(a) engage in the business of a principal broker, associate broker, or sales agent;
	640	+	309
	641	+	(b) act in the capacity of a principal broker, associate broker, or sales agent;
	642	+	310
	643	+	(c) advertise or assume to act as a principal broker, associate broker, or a sales agent[.] ;
	644	+	311
	645	+	or
	646	+	312
	647	+	(d) engage in property management.
	648	+	313
	649	+	(2) Except as provided in Section 61-2f-202, an individual is required to be licensed as a
	650	+	314
	651	+	principal broker, associate broker, or a sales agent if the individual performs, offers to
	652	+	315
	653	+	perform, or attempts to perform one act for valuable consideration of:
	654	+	316
	655	+	(a) buying, selling,[ leasing, managing,] or exchanging real estate for another person; or
	656	+	317
	657	+	(b) offering for another person to buy, sell, [lease, manage, ]or exchange real estate.
	658	+	318
	659	+	(3) Except as provided in Subsection 61-2f-202(1), unless an individual is licensed as a
	660	+	319
	661	+	property manager, an individual may not, for consideration:
	662	+	320
	663	+	(a) engage in property management; or
	664	+	321
	665	+	(b) offer to engage in property management on behalf of another person.
	666	+	322
	667	+	Section 4. Section 61-2f-202 is amended to read:
	668	+	323
	669	+	61-2f-202 . Exempt persons and transactions.
	670	+	324
	671	+	(1)(a) Except as provided in Subsection (1)(b), a license under this chapter is not
	672	+	325
	673	+	required for:
	674	+	326
	675	+	(i) a person who as owner or lessor performs an act described in Subsection [
	676	+	327
	677	+	61-2f-102(20)] 61-2f-102(19) with reference to real estate owned or leased by that
	678	+	328
	679	+	person;
	680	+	329
	681	+	(ii) a regular salaried employee of the owner or lessor of real estate who, with
	682	+	330
	683	+	reference to nonresidential real estate owned or leased by the employer, performs
	684	+	- 10 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
	685	+	331
	686	+	an act described in Subsection [61-2f-102(20)(b)] 61-2f-102(19)(b) or (c);
	687	+	332
	688	+	(iii) a regular salaried employee of the owner of real estate who performs property
	689	+	333
	690	+	management services with reference to real estate owned by the employer, except
	691	+	334
	692	+	that the employee may only manage real estate for one employer;
	693	+	335
	694	+	(iv) an individual who performs property management services for the apartments at
	695	+	336
	696	+	which that individual resides in exchange for free or reduced rent on that
	697	+	337
	698	+	individual's apartment;
	699	+	338
	700	+	(v) a regular salaried employee of a Ŝ→ [condominium homeowners'] common
	701	+	338a
	702	+	interest ←Ŝ association who
	703	+	339
	704	+	manages real estate subject to the declaration Ŝ→ [of condominium]
	705	+	339a
	706	+	covenants, conditions, and restrictions ←Ŝ that established the
	707	+	340
	708	+	Ŝ→ [condominium homeowners' ] common interest ←Ŝ association Ŝ→ [,
	709	+	340a
	710	+	except that the employee may only
	711	+	341
	712	+	manage real estate for one condominium homeowners'
	713	+	341a
	714	+	association] ←Ŝ ;
	715	+	342
	716	+	(vi) a regular salaried employee of a licensed property management company or real
	717	+	343
	718	+	estate brokerage who performs support services, as prescribed by rule, for the
	719	+	344
	720	+	property management company or real estate brokerage; or
	721	+	345
	722	+	(vii) in the event a principal broker dies, is incapacitated, or is unable to perform the
	723	+	346
	724	+	duties of a principal broker, an individual qualified and designated as the
	725	+	347
	726	+	commission determines by rule made in accordance with Title 63G, Chapter 3,
	727	+	348
	728	+	Utah Administrative Rulemaking Act, with the concurrence of the division, as an
	729	+	349
	730	+	acting principal broker:
	731	+	350
	732	+	(A) in relation to each transaction pending on the day on which the principal
	733	+	351
	734	+	broker dies, becomes incapacitated, or becomes unable to perform the duties of
	735	+	352
	736	+	a principal broker, including the distribution of compensation for each
	737	+	353
	738	+	transaction; and
	739	+	354
	740	+	(B) until the day on which each transaction described in Subsection (1)(a)(vii)(A)
	741	+	355
	742	+	is completed.
	743	+	356
	744	+	(b) Subsection (1)(a) does not exempt from licensing:
	745	+	357
	746	+	(i) an employee engaged in the sale of real estate regulated under:
	747	+	358
	748	+	(A) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act; or
	749	+	359
	750	+	(B) Title 57, Chapter 19, Timeshare and Camp Resort Act;
	751	+	360
	752	+	(ii) an employee engaged in the sale of cooperative interests regulated under Title 57,
	753	+	- 11 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
	754	+	361
	755	+	Chapter 23, Real Estate Cooperative Marketing Act; or
	756	+	362
	757	+	(iii) an individual whose interest as an owner or lessor is obtained by that individual
	758	+	363
	759	+	or transferred to that individual for the purpose of evading the application of this
	760	+	364
	761	+	chapter, and not for another legitimate business reason.
	762	+	365
	763	+	(2) A license under this chapter is not required for:
	764	+	366
	765	+	(a) an isolated transaction or service by an individual holding an unsolicited, duly
	766	+	367
	767	+	executed power of attorney from a property owner;
	768	+	368
	769	+	(b) subject to Subsection 61-2f-401(5), services rendered by an attorney admitted to
	770	+	369
	771	+	practice law in this state in performing the attorney's duties as an attorney;
	772	+	370
	773	+	(c) a receiver, trustee in bankruptcy, administrator, executor, or an individual acting
	774	+	371
	775	+	under order of a court;
	776	+	372
	777	+	(d) a trustee or employee of a trustee under a deed of trust or a will;
	778	+	373
	779	+	(e) a public utility, officer of a public utility, or regular salaried employee of a public
	780	+	374
	781	+	utility, unless performance of an act described in Subsection [61-2f-102(20)]
	782	+	375
	783	+	61-2f-102(19) is in connection with the sale, purchase, lease, or other disposition of
	784	+	376
	785	+	real estate or investment in real estate unrelated to the principal business activity of
	786	+	377
	787	+	that public utility;
	788	+	378
	789	+	(f) a regular salaried employee or authorized agent working under the oversight of the
	790	+	379
	791	+	Department of Transportation when performing an act on behalf of the Department of
	792	+	380
	793	+	Transportation in connection with one or more of the following:
	794	+	381
	795	+	(i) the acquisition of real estate pursuant to Section 72-5-103;
	796	+	382
	797	+	(ii) the disposal of real estate pursuant to Section 72-5-111;
	798	+	383
	799	+	(iii) services that constitute property management; or
	800	+	384
	801	+	(iv) the leasing of real estate; and
	802	+	385
	803	+	(g) a regular salaried employee of a county, city, or town when performing an act on
	804	+	386
	805	+	behalf of the county, city, or town:
	806	+	387
	807	+	(i) in accordance with:
	808	+	388
	809	+	(A) if a regular salaried employee of a city or town:
	810	+	389
	811	+	(I) Title 10, Utah Municipal Code; or
	812	+	390
	813	+	(II) Title 11, Cities, Counties, and Local Taxing Units; and
	814	+	391
	815	+	(B) if a regular salaried employee of a county:
	816	+	392
	817	+	(I) Title 11, Cities, Counties, and Local Taxing Units; and
	818	+	393
	819	+	(II) Title 17, Counties; and
	820	+	394
	821	+	(ii) in connection with one or more of the following:
	822	+	- 12 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
	823	+	395
	824	+	(A) the acquisition of real estate, including by eminent domain;
	825	+	396
	826	+	(B) the disposal of real estate;
	827	+	397
	828	+	(C) services that constitute property management; or
	829	+	398
	830	+	(D) the leasing of real estate.
	831	+	399
	832	+	(3) A license under this chapter is not required for an individual registered to act as a
	833	+	400
	834	+	broker-dealer, agent, or investment adviser under the Utah and federal securities laws in
	835	+	401
	836	+	the sale or the offer for sale of real estate if:
	837	+	402
	838	+	(a)(i) the real estate is a necessary element of a "security" as that term is defined by
	839	+	403
	840	+	the Securities Act of 1933 and the Securities Exchange Act of 1934; and
	841	+	404
	842	+	(ii) the security is registered for sale in accordance with:
	843	+	405
	844	+	(A) the Securities Act of 1933; or
	845	+	406
	846	+	(B) Title 61, Chapter 1, Utah Uniform Securities Act; or
	847	+	407
	848	+	(b)(i) it is a transaction in a security for which a Form D, described in 17 C.F.R. Sec.
	849	+	408
	850	+	239.500, has been filed with the Securities and Exchange Commission pursuant to
	851	+	409
	852	+	Regulation D, Rule 506, 17 C.F.R. Sec. 230.506; and
	853	+	410
	854	+	(ii) the selling agent and the purchaser are not residents of this state.
	855	+	411
	856	+	(4) Except as otherwise provided by statute or rule, the following individuals may engage in
	857	+	412
	858	+	the practice of an occupation or profession regulated by this chapter, subject to the stated
	859	+	413
	860	+	circumstances and limitations, without being licensed under this chapter:
	861	+	414
	862	+	(a) an individual licensed under the laws of this state, other than under this chapter, to
	863	+	415
	864	+	practice or engage in an occupation or profession, while engaged in the lawful,
	865	+	416
	866	+	professional, and competent practice of that occupation or profession;
	867	+	417
	868	+	(b) an individual serving in the armed forces of the United States, the United States
	869	+	418
	870	+	Public Health Service, the United States Department of Veterans Affairs, or any other
	871	+	419
	872	+	federal agency while engaged in activities regulated under this title as a part of
	873	+	420
	874	+	employment with that federal agency if the individual holds a valid license to practice
	875	+	421
	876	+	the regulated occupation or profession issued by any other state or jurisdiction
	877	+	422
	878	+	recognized by the department; and
	879	+	423
	880	+	(c) the spouse of an individual serving in the armed forces of the United States while the
	881	+	424
	882	+	individual is stationed within this state, if:
	883	+	425
	884	+	(i) the spouse holds a valid license to practice the regulated occupation or profession
	885	+	426
	886	+	issued by any other state or jurisdiction recognized by the department; and
	887	+	427
	888	+	(ii) the license is current and the spouse is in good standing in the state or jurisdiction
	889	+	428
	890	+	of licensure.
	891	+	- 13 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
	892	+	429
	893	+	(5) As used in this section, "owner" does not include:
	894	+	430
	895	+	(a) a person who holds an option to purchase real property;
	896	+	431
	897	+	(b) a mortgagee;
	898	+	432
	899	+	(c) a beneficiary under a deed of trust;
	900	+	433
	901	+	(d) a trustee under a deed of trust; or
	902	+	434
	903	+	(e) a person who owns or holds a claim that encumbers any real property or an
	904	+	435
	905	+	improvement to the real property.
	906	+	436
	907	+	(6) The commission, with the concurrence of the division, may provide, by rule made in
	908	+	437
	909	+	accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
	910	+	438
	911	+	circumstances under which a person or transaction qualifies for an exemption that is
	912	+	439
	913	+	described in this section.
	914	+	440
	915	+	Section 5. Section 61-2f-202.5 is enacted to read:
	916	+	441
	917	+	61-2f-202.5 . Exempt individuals and transactions involving property
	918	+	442
	919	+	management.
	920	+	443
	921	+	A license under this chapter is not required for:
	922	+	444
	923	+	(1) an individual who, as an owner or lessor, performs an act described in Subsection
	924	+	445
	925	+	61-2f-102(20) in connection to real estate owned or leased by that individual;
	926	+	446
	927	+	(2) an individual who is part of a property owner's immediate family, if the individual
	928	+	447
	929	+	performs an act described in Subsection 61-2f-102(20) in connection to real estate
	930	+	448
	931	+	owned by the property owner;
	932	+	449
	933	+	(3) an unlicensed or remote assistant of a property manager;
	934	+	450
	935	+	(4) an individual who exclusively performs the following tasks:
	936	+	451
	937	+	(a) maintenance and repairs on real property; or
	938	+	452
	939	+	(b) bookkeeping and accounting; or
	940	+	453
	941	+	(5) a regional manager or a corporate official of a rental agency who does not engage in an
	942	+	454
	943	+	act described in Subsection 61-2f-102(20).
	944	+	455
	945	+	Section 6. Section 61-2f-203 is amended to read:
	946	+	456
	947	+	61-2f-203 . Licensing requirements.
	948	+	457
	949	+	(1)(a)(i) The division shall determine whether an applicant with a criminal history
	950	+	458
	951	+	qualifies for licensure.
	952	+	459
	953	+	(ii) If the division, acting under Subsection (1)(a)(i), denies or restricts a license or
	954	+	460
	955	+	places a license on probation, the applicant may petition the commission for de
	956	+	461
	957	+	novo review of the application.
	958	+	462
	959	+	(b) Except as provided in Subsection (6), the commission shall determine all other
	960	+	- 14 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
	961	+	463
	962	+	qualifications and requirements of an applicant for:
	963	+	464
	964	+	(i) a principal broker license;
	965	+	465
	966	+	(ii) an associate broker license;[ or]
	967	+	466
	968	+	(iii) a sales agent license[.] ; or
	969	+	467
	970	+	(iv) a property manager license.
	971	+	468
	972	+	(c) The division, with the concurrence of the commission, shall require and pass upon
	973	+	469
	974	+	proof necessary to determine the honesty, integrity, truthfulness, reputation, and
	975	+	470
	976	+	competency of each applicant for an initial license or for renewal of an existing
	977	+	471
	978	+	license.
	979	+	472
	980	+	(d)(i)(A) Except as provided in Subsection (1)(d)(i)(B), the division, with the
	981	+	473
	982	+	concurrence of the commission, shall require an applicant for a sales agent
	983	+	474
	984	+	license to complete a division-approved educational program consisting of not
	985	+	475
	986	+	less than 120 hours, as designated by rule the commission makes in accordance
	987	+	476
	988	+	with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, with the
	989	+	477
	990	+	concurrence of the division.
	991	+	478
	992	+	(B) If on the day on which an applicant for a sales agent license applies for the
	993	+	479
	994	+	license the applicant is licensed as a real estate sales agent in another state, the
	995	+	480
	996	+	division may require the applicant to complete a division-approved,
	997	+	481
	998	+	state-specific educational program consisting of the number of hours
	999	+	482
	1000	+	designated by rule the commission makes in accordance with Title 63G,
	1001	+	483
	1002	+	Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of the
	1003	+	484
	1004	+	division.
	1005	+	485
	1006	+	(ii)(A) Except as provided in Subsection (1)(d)(ii)(B), the division, with the
	1007	+	486
	1008	+	concurrence of the commission, shall require an applicant for an associate
	1009	+	487
	1010	+	broker or a principal broker license to complete a division-approved
	1011	+	488
	1012	+	educational program consisting of not less than 120 hours, as designated by
	1013	+	489
	1014	+	rule the commission makes in accordance with Title 63G, Chapter 3, Utah
	1015	+	490
	1016	+	Administrative Rulemaking Act, with the concurrence of the division.
	1017	+	491
	1018	+	(B) If on the day on which an applicant for an associate broker or a principal
	1019	+	492
	1020	+	broker license applies for the license the applicant is licensed as a real estate
	1021	+	493
	1022	+	broker in another state, the division may require the applicant to complete a
	1023	+	494
	1024	+	division-approved, state-specific educational program consisting of the number
	1025	+	495
	1026	+	of hours designated by rule the commission makes in accordance with Title
	1027	+	496
	1028	+	63G, Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of
	1029	+	- 15 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
	1030	+	497
	1031	+	the division.
	1032	+	498
	1033	+	(iii)(A) Except as provided in Subsection (1)(d)(iii)(B), the division shall require
	1034	+	499
	1035	+	that an applicant for a property manager license complete the educational
	1036	+	500
	1037	+	program described in Subsection (1)(d)(iv).
	1038	+	501
	1039	+	(B) If, on the day on which an applicant for a property manager license applies for
	1040	+	502
	1041	+	the license, the applicant is licensed as a property manager in another state, the
	1042	+	503
	1043	+	division may require the applicant to complete a division-approved,
	1044	+	504
	1045	+	state-specific educational program consisting of the number of hours
	1046	+	505
	1047	+	designated by rule the commission makes in accordance with Title 63G,
	1048	+	506
	1049	+	Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of the
	1050	+	507
	1051	+	division.
	1052	+	508
	1053	+	(iv) The division shall create an educational program for a property manager license
	1054	+	509
	1055	+	that:
	1056	+	510
	1057	+	(A) requires at least 24 hours of training;
	1058	+	511
	1059	+	(B) covers subjects the division determines necessary for the program; and
	1060	+	512
	1061	+	(C) establishes the proportion of hours allocated for each subject in the program.
	1062	+	513
	1063	+	[(iii)] (v) An hour required by this section means 50 minutes of instruction in each 60
	1064	+	514
	1065	+	minutes.
	1066	+	515
	1067	+	[(iv)] (vi) The maximum number of program hours available to an individual is eight
	1068	+	516
	1069	+	hours per day.
	1070	+	517
	1071	+	(e)(i) Except as provided in Subsection (1)(e)(ii), the division, with the concurrence
	1072	+	518
	1073	+	of the commission, shall require an applicant to pass an examination approved by
	1074	+	519
	1075	+	the commission covering:
	1076	+	520
	1077	+	(A) the fundamentals of the English language;
	1078	+	521
	1079	+	(B) the fundamentals of arithmetic;
	1080	+	522
	1081	+	(C) the fundamentals of bookkeeping;
	1082	+	523
	1083	+	(D) the fundamentals of real estate principles and practices;
	1084	+	524
	1085	+	(E) this chapter;
	1086	+	525
	1087	+	(F) the rules established by the commission with the concurrence of the division;
	1088	+	526
274	1089		and
275		-	134
276		-	[(a)] (b)(i) sells or lists for sale real estate, including real estate being sold as part of a
277		-	135
278		-	foreclosure rescue, or a business opportunity with the expectation of receiving
279		-	136
280		-	valuable consideration;
281		-	137
282		-	[(b)] (ii) buys, exchanges, or auctions real estate, an option on real estate, a business
283		-	138
284		-	opportunity, or an improvement on real estate with the expectation of receiving
285		-	139
286		-	valuable consideration;
287		-	140
288		-	[(c)] (iii) advertises, offers, attempts, or otherwise holds the individual out to be
289		-	141
290		-	engaged in the business described in Subsection [(20)(a) ] (19)(a) or (b)(ii);
291		-	142
292		-	[(d)] (iv) is employed by or on behalf of the owner of real estate or by a prospective
293		-	143
294		-	purchaser of real estate and performs an act described in Subsection [(20)(a), ]
295		-	144
296		-	(19)(b)(i), whether the individual's compensation is at a stated salary, a
297		-	145
298		-	commission basis, upon a salary and commission basis, or otherwise;
299		-	146
300		-	[(e)] (v) with the expectation of receiving valuable consideration, manages property
301		-	147
302		-	owned by another person;
303		-	148
304		-	[(f)] (vi) advertises or otherwise holds the individual out to be engaged in property
305		-	149
306		-	management;
307		-	150
308		-	[(g)] (vii) with the expectation of receiving valuable consideration, assists or directs in
309		-	151
310		-	the procurement of prospects for or the negotiation of a transaction listed in
311		-	152
312		-	Subsections [(20)(a)] (19)(b)(i) and [(e)] (v);
313		-	153
314		-	[(h)] (viii) except for a mortgage lender, title insurance producer, or an employee of a
315		-	154
316		-	mortgage lender or title insurance producer, assists or directs in the closing of a
317		-	155
318		-	real estate transaction with the expectation of receiving valuable consideration;
319		-	156
320		-	[(i)] (ix) engages in foreclosure rescue; or
321		-	157
322		-	[(j)] (x) advertises, offers, attempts, or otherwise holds the person out as being
323		-	158
324		-	engaged in foreclosure rescue.
325		-	159
326		-	[(21)] (20)(a) "Property management" means [engaging in] the management of real estate
327		-	160
328		-	owned by another person, with the expectation of receiving valuable consideration,[
329		-	161
330		-	the management of real estate owned by another person] or advertising or otherwise
331		-	162
332		-	claiming to be engaged in [property management] the management of real estate
333		-	163
334		-	owned by another person, by:
335		-	- 5 - H.B. 337 Enrolled Copy
336		-	164
337		-	(i) advertising for, arranging, negotiating, offering, or otherwise attempting or
338		-	165
339		-	participating in a transaction calculated to secure the rental or leasing of real estate;
340		-	166
341		-	(ii) collecting, agreeing, offering, or otherwise attempting to collect rent for the real
342		-	167
343		-	estate[ and accounting for and disbursing the money collected]; or
344		-	168
345		-	(iii) [authorizing expenditures for repairs to the real estate] signing a lease agreement
346		-	169
347		-	or an addendum with a tenant.
348		-	170
349		-	(b) "Property management" does not include:
350		-	171
351		-	(i) hotel or motel management;
352		-	172
353		-	(ii) rental of tourist accommodations, including hotels, motels, tourist homes,
354		-	173
355		-	condominiums, condominium hotels, mobile home park accommodations,
356		-	174
357		-	campgrounds, or similar public accommodations for a period of less than 30
358		-	175
359		-	consecutive days, and the management activities associated with these rentals; or
360		-	176
361		-	(iii) the leasing or management of surface or subsurface minerals or oil and gas
362		-	177
363		-	interests, if the leasing or management is separate from a sale or lease of the
364		-	178
365		-	surface estate.
366		-	179
367		-	[(22) "Property management sales agent" means a sales agent who:]
368		-	180
369		-	[(a) is affiliated with a dual broker through the dual broker's property management
370		-	181
371		-	company; and]
372		-	182
373		-	[(b) is designated by the dual broker as a property management sales agent.]
374		-	183
375		-	(21) "Property manager" means an individual who:
376		-	184
377		-	(a) is licensed or required to be licensed as a property manager under this chapter; and
378		-	185
379		-	(b)(i) engages in property management; or
380		-	186
381		-	(ii) advertises or otherwise holds the individual out to be engaged in property
382		-	187
383		-	management.
384		-	188
385		-	[(23)] (22) "Real estate" includes leaseholds and business opportunities involving real
386		-	189
387		-	property.
388		-	190
389		-	[(24)] (23)(a) "Regular salaried employee" means an individual:
390		-	191
391		-	(i) who performs a service for wages or other remuneration[,] ; and
392		-	192
393		-	(ii) whose employer withholds federal employment taxes under a contract of hire,
394		-	193
395		-	written or oral, express or implied.
396		-	194
397		-	(b) "Regular salaried employee" does not include an individual who performs services
398		-	195
399		-	on a project-by-project basis or on a commission basis.
400		-	196
401		-	[(25)] (24) "Reinstatement" means [restoring] the restoration of a license that has expired or
402		-	197
403		-	has been suspended.
404		-	- 6 - Enrolled Copy H.B. 337
405		-	198
406		-	[(26)] (25) "Reissuance" means the process by which [a licensee] an individual may obtain a
407		-	199
408		-	license following revocation of the license.
409		-	200
410		-	[(27)] (26) "Renewal" means [extending] the extension of a license for an additional
411		-	201
412		-	licensing period on or before the date the license expires.
413		-	202
414		-	[(28)] (27) "Sales agent" means an individual who is:
415		-	203
416		-	(a) affiliated with a principal broker, either as an independent contractor or an employee
417		-	204
418		-	as provided in Section 61-2f-303, to perform for valuable consideration an act
419		-	205
420		-	described in Subsection [(20)] (19); and
421		-	206
422		-	(b) licensed, or required to be licensed, under this chapter as a sales agent.
423		-	207
424		-	[(29)] (28) "Vulnerable adult" means the same as that term is defined in Section 26B-6-201.
425		-	208
426		-	Section 2. Section 61-2f-103 is amended to read:
427		-	209
428		-	61-2f-103 . Real Estate Commission.
429		-	210
430		-	(1) There is created within the division a Real Estate Commission.
431		-	211
432		-	(2) The commission shall:
433		-	212
434		-	(a) subject to concurrence by the division and in accordance with Title 63G, Chapter 3,
435		-	213
436		-	Utah Administrative Rulemaking Act, make rules for the administration of this
437		-	214
438		-	chapter that are not inconsistent with this chapter, including:
439		-	215
440		-	(i) licensing of:
441		-	216
442		-	(A) a principal broker;
443		-	217
444		-	(B) an associate broker;[ and]
445		-	218
446		-	(C) a sales agent; and
447		-	219
448		-	(D) a property manager;
449		-	220
450		-	(ii) registration of:
451		-	221
452		-	(A) an entity;
453		-	222
454		-	(B) an assumed name under which a person conducts business;
455		-	223
456		-	(C) a branch office; and
457		-	224
458		-	(D) a property management company;
459		-	225
460		-	(iii) prelicensing and postlicensing education curricula;
461		-	226
462		-	(iv) examination procedures;
463		-	227
464		-	(v) the certification and conduct of:
465		-	228
466		-	(A) a real estate school;
467		-	229
468		-	(B) a course provider; or
469		-	230
470		-	(C) an instructor;
471		-	231
472		-	(vi) proper handling of money received by a licensee under this chapter;
473		-	- 7 - H.B. 337 Enrolled Copy
474		-	232
475		-	(vii) brokerage office procedures and recordkeeping requirements;
476		-	233
477		-	(viii) property management;
478		-	234
479		-	(ix) standards of conduct for a licensee under this chapter;
480		-	235
481		-	(x) if the commission, with the concurrence of the division, determines necessary, a
482		-	236
483		-	rule as provided in Subsection 61-2f-306(3) regarding a legal form;
484		-	237
485		-	(xi) the qualification and designation of an acting principal broker in the event a
486		-	238
487		-	principal broker dies, is incapacitated, or is unable to perform the duties of a
488		-	239
489		-	principal broker, as described in Section 61-2f-202; and
490		-	240
491		-	(xii) giving or paying an inducement gift or a closing gift to a buyer or seller in a real
492		-	241
493		-	property transaction;
494		-	242
495		-	(b) establish, with the concurrence of the division, a fee provided for in this chapter,
496		-	243
497		-	except a fee imposed under Part 5, Real Estate Education, Research, and Recovery
498		-	244
499		-	Fund Act;
500		-	245
501		-	(c) conduct an administrative hearing not delegated by the commission to an
502		-	246
503		-	administrative law judge or the division relating to the:
504		-	247
505		-	(i) licensing of an applicant;
506		-	248
507		-	(ii) conduct of a licensee;
508		-	249
509		-	(iii) the certification or conduct of a real estate school, course provider, or instructor
510		-	250
511		-	regulated under this chapter; or
512		-	251
513		-	(iv) violation of this chapter by any person;
514		-	252
515		-	(d) with the concurrence of the director, impose a sanction as provided in Section
516		-	253
517		-	61-2f-404;
518		-	254
519		-	(e) advise the director on the administration and enforcement of a matter affecting the
520		-	255
521		-	division and the real estate sales and property management industries;
522		-	256
523		-	(f) advise the director on matters affecting the division budget;
524		-	257
525		-	(g) advise and assist the director in conducting real estate seminars; and
526		-	258
527		-	(h) perform other duties as provided by this chapter.
528		-	259
529		-	(3)(a) Except as provided in Subsection (3)(b), a state entity may not, without the
530		-	260
531		-	concurrence of the commission, make a rule that changes the rights, duties, or
532		-	261
533		-	obligations of buyers, sellers, or persons licensed under this chapter in relation to a
534		-	262
535		-	real estate transaction between private parties.
536		-	263
537		-	(b) Subsection (3)(a) does not apply to a rule made:
538		-	264
539		-	(i) under Title 31A, Insurance Code, or Title 7, Financial Institutions Act; or
540		-	265
541		-	(ii) by the Department of Commerce or any division or other rulemaking body within
542		-	- 8 - Enrolled Copy H.B. 337
543		-	266
544		-	the Department of Commerce.
545		-	267
546		-	(4)(a) The commission [shall be comprised] consists of five members appointed by the
547		-	268
548		-	governor and approved by the Senate in accordance with Title 63G, Chapter 24, Part
549		-	269
550		-	2, Vacancies.
551		-	270
552		-	(b) Four of the commission members shall:
553		-	271
554		-	(i) have at least five years' experience in the real estate business; and
555		-	272
556		-	(ii) hold an active principal broker, associate broker, or sales agent license.
557		-	273
558		-	(c) One commission member shall be a member of the general public.
559		-	274
560		-	(d) The governor may not appoint a commission member described in Subsection (4)(b)
561		-	275
562		-	who, at the time of appointment, resides in the same county in the state as another
563		-	276
564		-	commission member.
565		-	277
566		-	(e) At least one commission member described in Subsection (4)(b) shall at the time of
567		-	278
568		-	an appointment reside in a county that is not a county of the first or second class.
569		-	279
570		-	(5)(a) Except as required by Subsection (5)(b), as terms of current commission members
571		-	280
572		-	expire, the governor shall appoint each new member or reappointed member to a
573		-	281
574		-	four-year term ending June 30.
575		-	282
576		-	(b) [Notwithstanding the requirements of Subsection (5)(a), the] The governor shall, at
577		-	283
578		-	the time of appointment or reappointment, adjust the length of terms to ensure that
579		-	284
580		-	the terms of commission members are staggered so that approximately half of the
581		-	285
582		-	commission is appointed every two years.
583		-	286
584		-	(c) Upon the expiration of the term of a member of the commission, the member of the
585		-	287
586		-	commission shall continue to hold office until a successor is appointed and qualified.
587		-	288
588		-	(d) A commission member may not serve more than two consecutive terms.
589		-	289
590		-	(e) Members of the commission shall annually select one member to serve as chair.
591		-	290
592		-	(6) When a vacancy occurs in the membership for any reason, the governor, with the advice
593		-	291
594		-	and consent of the Senate, shall appoint a replacement for the unexpired term.
595		-	292
596		-	(7) A member may not receive compensation or benefits for the member's service, but may
597		-	293
598		-	receive per diem and travel expenses in accordance with:
599		-	294
600		-	(a) Section 63A-3-106;
601		-	295
602		-	(b) Section 63A-3-107; and
603		-	296
604		-	(c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
605		-	297
606		-	63A-3-107.
607		-	298
608		-	(8)(a) The commission shall meet at least monthly.
609		-	299
610		-	(b) The director may call additional meetings:
611		-	- 9 - H.B. 337 Enrolled Copy
612		-	300
613		-	(i) at the director's discretion;
614		-	301
615		-	(ii) upon the request of the chair; or
616		-	302
617		-	(iii) upon the written request of three or more commission members.
618		-	303
619		-	(9) Three members of the commission constitute a quorum for the transaction of business.
620		-	304
621		-	(10) A member of the commission shall comply with the conflict of interest provisions
622		-	305
623		-	described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.
624		-	306
625		-	Section 3. Section 61-2f-201 is amended to read:
626		-	307
627		-	61-2f-201 . License required.
628		-	308
629		-	(1) Unless a person is licensed under this chapter, it is unlawful for the person to do the
630		-	309
631		-	following with respect to real estate located in this state:
632		-	310
633		-	(a) engage in the business of a principal broker, associate broker, or sales agent;
634		-	311
635		-	(b) act in the capacity of a principal broker, associate broker, or sales agent;
636		-	312
637		-	(c) advertise or assume to act as a principal broker, associate broker, or a sales agent[.] ;
638		-	313
639		-	or
640		-	314
641		-	(d) engage in property management.
642		-	315
643		-	(2) Except as provided in Section 61-2f-202, an individual is required to be licensed as a
644		-	316
645		-	principal broker, associate broker, or a sales agent if the individual performs, offers to
646		-	317
647		-	perform, or attempts to perform one act for valuable consideration of:
648		-	318
649		-	(a) buying, selling,[ leasing, managing,] or exchanging real estate for another person; or
650		-	319
651		-	(b) offering for another person to buy, sell, [lease, manage, ]or exchange real estate.
652		-	320
653		-	(3) Except as provided in Subsection 61-2f-202(1), unless an individual is licensed as a
654		-	321
655		-	property manager, an individual may not, for consideration:
656		-	322
657		-	(a) engage in property management; or
658		-	323
659		-	(b) offer to engage in property management on behalf of another person.
660		-	324
661		-	Section 4. Section 61-2f-202 is amended to read:
662		-	325
663		-	61-2f-202 . Exempt persons and transactions.
664		-	326
665		-	(1)(a) Except as provided in Subsection (1)(b), a license under this chapter is not
666		-	327
667		-	required for:
668		-	328
669		-	(i) a person who as owner or lessor performs an act described in Subsection [
670		-	329
671		-	61-2f-102(20)] 61-2f-102(19) with reference to real estate owned or leased by that
672		-	330
673		-	person;
674		-	331
675		-	(ii) a regular salaried employee of the owner or lessor of real estate who, with
676		-	332
677		-	reference to nonresidential real estate owned or leased by the employer, performs
678		-	333
679		-	an act described in Subsection [61-2f-102(20)(b)] 61-2f-102(19)(b) or (c);
680		-	- 10 - Enrolled Copy H.B. 337
681		-	334
682		-	(iii) a regular salaried employee of the owner of real estate who performs property
683		-	335
684		-	management services with reference to real estate owned by the employer, except
685		-	336
686		-	that the employee may only manage real estate for one employer;
687		-	337
688		-	(iv) an individual who performs property management services for the apartments at
689		-	338
690		-	which that individual resides in exchange for free or reduced rent on that
691		-	339
692		-	individual's apartment;
693		-	340
694		-	(v) a regular salaried employee of a [condominium homeowners'] common interest
695		-	341
696		-	association who manages real estate subject to the declaration [of condominium]
697		-	342
698		-	covenants, conditions, and restrictions that established the [condominium
699		-	343
700		-	homeowners' ] common interest association[, except that the employee may only
701		-	344
702		-	manage real estate for one condominium homeowners' association];
703		-	345
704		-	(vi) a regular salaried employee of a licensed property management company or real
705		-	346
706		-	estate brokerage who performs support services, as prescribed by rule, for the
707		-	347
708		-	property management company or real estate brokerage; or
709		-	348
710		-	(vii) in the event a principal broker dies, is incapacitated, or is unable to perform the
711		-	349
712		-	duties of a principal broker, an individual qualified and designated as the
713		-	350
714		-	commission determines by rule made in accordance with Title 63G, Chapter 3,
715		-	351
716		-	Utah Administrative Rulemaking Act, with the concurrence of the division, as an
717		-	352
718		-	acting principal broker:
719		-	353
720		-	(A) in relation to each transaction pending on the day on which the principal
721		-	354
722		-	broker dies, becomes incapacitated, or becomes unable to perform the duties of
723		-	355
724		-	a principal broker, including the distribution of compensation for each
725		-	356
726		-	transaction; and
727		-	357
728		-	(B) until the day on which each transaction described in Subsection (1)(a)(vii)(A)
729		-	358
730		-	is completed.
731		-	359
732		-	(b) Subsection (1)(a) does not exempt from licensing:
733		-	360
734		-	(i) an employee engaged in the sale of real estate regulated under:
735		-	361
736		-	(A) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act; or
737		-	362
738		-	(B) Title 57, Chapter 19, Timeshare and Camp Resort Act;
739		-	363
740		-	(ii) an employee engaged in the sale of cooperative interests regulated under Title 57,
741		-	364
742		-	Chapter 23, Real Estate Cooperative Marketing Act; or
743		-	365
744		-	(iii) an individual whose interest as an owner or lessor is obtained by that individual
745		-	366
746		-	or transferred to that individual for the purpose of evading the application of this
747		-	367
748		-	chapter, and not for another legitimate business reason.
749		-	- 11 - H.B. 337 Enrolled Copy
750		-	368
751		-	(2) A license under this chapter is not required for:
752		-	369
753		-	(a) an isolated transaction or service by an individual holding an unsolicited, duly
754		-	370
755		-	executed power of attorney from a property owner;
756		-	371
757		-	(b) subject to Subsection 61-2f-401(5), services rendered by an attorney admitted to
758		-	372
759		-	practice law in this state in performing the attorney's duties as an attorney;
760		-	373
761		-	(c) a receiver, trustee in bankruptcy, administrator, executor, or an individual acting
762		-	374
763		-	under order of a court;
764		-	375
765		-	(d) a trustee or employee of a trustee under a deed of trust or a will;
766		-	376
767		-	(e) a public utility, officer of a public utility, or regular salaried employee of a public
768		-	377
769		-	utility, unless performance of an act described in Subsection [61-2f-102(20)]
770		-	378
771		-	61-2f-102(19) is in connection with the sale, purchase, lease, or other disposition of
772		-	379
773		-	real estate or investment in real estate unrelated to the principal business activity of
774		-	380
775		-	that public utility;
776		-	381
777		-	(f) a regular salaried employee or authorized agent working under the oversight of the
778		-	382
779		-	Department of Transportation when performing an act on behalf of the Department of
780		-	383
781		-	Transportation in connection with one or more of the following:
782		-	384
783		-	(i) the acquisition of real estate pursuant to Section 72-5-103;
784		-	385
785		-	(ii) the disposal of real estate pursuant to Section 72-5-111;
786		-	386
787		-	(iii) services that constitute property management; or
788		-	387
789		-	(iv) the leasing of real estate; and
790		-	388
791		-	(g) a regular salaried employee of a county, city, or town when performing an act on
792		-	389
793		-	behalf of the county, city, or town:
794		-	390
795		-	(i) in accordance with:
796		-	391
797		-	(A) if a regular salaried employee of a city or town:
798		-	392
799		-	(I) Title 10, Utah Municipal Code; or
800		-	393
801		-	(II) Title 11, Cities, Counties, and Local Taxing Units; and
802		-	394
803		-	(B) if a regular salaried employee of a county:
804		-	395
805		-	(I) Title 11, Cities, Counties, and Local Taxing Units; and
806		-	396
807		-	(II) Title 17, Counties; and
808		-	397
809		-	(ii) in connection with one or more of the following:
810		-	398
811		-	(A) the acquisition of real estate, including by eminent domain;
812		-	399
813		-	(B) the disposal of real estate;
814		-	400
815		-	(C) services that constitute property management; or
816		-	401
817		-	(D) the leasing of real estate.
818		-	- 12 - Enrolled Copy H.B. 337
819		-	402
820		-	(3) A license under this chapter is not required for an individual registered to act as a
821		-	403
822		-	broker-dealer, agent, or investment adviser under the Utah and federal securities laws in
823		-	404
824		-	the sale or the offer for sale of real estate if:
825		-	405
826		-	(a)(i) the real estate is a necessary element of a "security" as that term is defined by
827		-	406
828		-	the Securities Act of 1933 and the Securities Exchange Act of 1934; and
829		-	407
830		-	(ii) the security is registered for sale in accordance with:
831		-	408
832		-	(A) the Securities Act of 1933; or
833		-	409
834		-	(B) Title 61, Chapter 1, Utah Uniform Securities Act; or
835		-	410
836		-	(b)(i) it is a transaction in a security for which a Form D, described in 17 C.F.R. Sec.
837		-	411
838		-	239.500, has been filed with the Securities and Exchange Commission pursuant to
839		-	412
840		-	Regulation D, Rule 506, 17 C.F.R. Sec. 230.506; and
841		-	413
842		-	(ii) the selling agent and the purchaser are not residents of this state.
843		-	414
844		-	(4) Except as otherwise provided by statute or rule, the following individuals may engage in
845		-	415
846		-	the practice of an occupation or profession regulated by this chapter, subject to the stated
847		-	416
848		-	circumstances and limitations, without being licensed under this chapter:
849		-	417
850		-	(a) an individual licensed under the laws of this state, other than under this chapter, to
851		-	418
852		-	practice or engage in an occupation or profession, while engaged in the lawful,
853		-	419
854		-	professional, and competent practice of that occupation or profession;
855		-	420
856		-	(b) an individual serving in the armed forces of the United States, the United States
857		-	421
858		-	Public Health Service, the United States Department of Veterans Affairs, or any other
859		-	422
860		-	federal agency while engaged in activities regulated under this title as a part of
861		-	423
862		-	employment with that federal agency if the individual holds a valid license to practice
863		-	424
864		-	the regulated occupation or profession issued by any other state or jurisdiction
865		-	425
866		-	recognized by the department; and
867		-	426
868		-	(c) the spouse of an individual serving in the armed forces of the United States while the
869		-	427
870		-	individual is stationed within this state, if:
871		-	428
872		-	(i) the spouse holds a valid license to practice the regulated occupation or profession
873		-	429
874		-	issued by any other state or jurisdiction recognized by the department; and
875		-	430
876		-	(ii) the license is current and the spouse is in good standing in the state or jurisdiction
877		-	431
878		-	of licensure.
879		-	432
880		-	(5) As used in this section, "owner" does not include:
881		-	433
882		-	(a) a person who holds an option to purchase real property;
883		-	434
884		-	(b) a mortgagee;
885		-	435
886		-	(c) a beneficiary under a deed of trust;
887		-	- 13 - H.B. 337 Enrolled Copy
888		-	436
889		-	(d) a trustee under a deed of trust; or
890		-	437
891		-	(e) a person who owns or holds a claim that encumbers any real property or an
892		-	438
893		-	improvement to the real property.
894		-	439
895		-	(6) The commission, with the concurrence of the division, may provide, by rule made in
896		-	440
897		-	accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
898		-	441
899		-	circumstances under which a person or transaction qualifies for an exemption that is
900		-	442
901		-	described in this section.
902		-	443
903		-	Section 5. Section 61-2f-202.5 is enacted to read:
904		-	444
905		-	61-2f-202.5 . Exempt individuals and transactions involving property
906		-	445
907		-	management.
908		-	446
909		-	A license under this chapter is not required for:
910		-	447
911		-	(1) an individual who, as an owner or lessor, performs an act described in Subsection
912		-	448
913		-	61-2f-102(20) in connection to real estate owned or leased by that individual;
914		-	449
915		-	(2) an individual who is part of a property owner's immediate family, if the individual
916		-	450
917		-	performs an act described in Subsection 61-2f-102(20) in connection to real estate
918		-	451
919		-	owned by the property owner;
920		-	452
921		-	(3) an unlicensed or remote assistant of a property manager;
922		-	453
923		-	(4) an individual who exclusively performs the following tasks:
924		-	454
925		-	(a) maintenance and repairs on real property; or
926		-	455
927		-	(b) bookkeeping and accounting; or
928		-	456
929		-	(5) a regional manager or a corporate official of a rental agency who does not engage in an
930		-	457
931		-	act described in Subsection 61-2f-102(20).
932		-	458
933		-	Section 6. Section 61-2f-203 is amended to read:
934		-	459
935		-	61-2f-203 . Licensing requirements.
936		-	460
937		-	(1)(a)(i) The division shall determine whether an applicant with a criminal history
938		-	461
939		-	qualifies for licensure.
940		-	462
941		-	(ii) If the division, acting under Subsection (1)(a)(i), denies or restricts a license or
942		-	463
943		-	places a license on probation, the applicant may petition the commission for de
944		-	464
945		-	novo review of the application.
946		-	465
947		-	(b) Except as provided in Subsection (6), the commission shall determine all other
948		-	466
949		-	qualifications and requirements of an applicant for:
950		-	467
951		-	(i) a principal broker license;
952		-	468
953		-	(ii) an associate broker license;[ or]
954		-	469
955		-	(iii) a sales agent license[.] ; or
956		-	- 14 - Enrolled Copy H.B. 337
957		-	470
958		-	(iv) a property manager license.
959		-	471
960		-	(c) The division, with the concurrence of the commission, shall require and pass upon
961		-	472
962		-	proof necessary to determine the honesty, integrity, truthfulness, reputation, and
963		-	473
964		-	competency of each applicant for an initial license or for renewal of an existing
965		-	474
966		-	license.
967		-	475
968		-	(d)(i)(A) Except as provided in Subsection (1)(d)(i)(B), the division, with the
969		-	476
970		-	concurrence of the commission, shall require an applicant for a sales agent
971		-	477
972		-	license to complete a division-approved educational program consisting of not
973		-	478
974		-	less than 120 hours, as designated by rule the commission makes in accordance
975		-	479
976		-	with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, with the
977		-	480
978		-	concurrence of the division.
979		-	481
980		-	(B) If on the day on which an applicant for a sales agent license applies for the
981		-	482
982		-	license the applicant is licensed as a real estate sales agent in another state, the
983		-	483
984		-	division may require the applicant to complete a division-approved,
985		-	484
986		-	state-specific educational program consisting of the number of hours
987		-	485
988		-	designated by rule the commission makes in accordance with Title 63G,
989		-	486
990		-	Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of the
991		-	487
992		-	division.
993		-	488
994		-	(ii)(A) Except as provided in Subsection (1)(d)(ii)(B), the division, with the
995		-	489
996		-	concurrence of the commission, shall require an applicant for an associate
997		-	490
998		-	broker or a principal broker license to complete a division-approved
999		-	491
1000		-	educational program consisting of not less than 120 hours, as designated by
1001		-	492
1002		-	rule the commission makes in accordance with Title 63G, Chapter 3, Utah
1003		-	493
1004		-	Administrative Rulemaking Act, with the concurrence of the division.
1005		-	494
1006		-	(B) If on the day on which an applicant for an associate broker or a principal
1007		-	495
1008		-	broker license applies for the license the applicant is licensed as a real estate
1009		-	496
1010		-	broker in another state, the division may require the applicant to complete a
1011		-	497
1012		-	division-approved, state-specific educational program consisting of the number
1013		-	498
1014		-	of hours designated by rule the commission makes in accordance with Title
1015		-	499
1016		-	63G, Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of
1017		-	500
1018		-	the division.
1019		-	501
1020		-	(iii)(A) Except as provided in Subsection (1)(d)(iii)(B), the division shall require
1021		-	502
1022		-	that an applicant for a property manager license complete the educational
1023		-	503
1024		-	program described in Subsection (1)(d)(iv).
1025		-	- 15 - H.B. 337 Enrolled Copy
1026		-	504
1027		-	(B) If, on the day on which an applicant for a property manager license applies for
1028		-	505
1029		-	the license, the applicant is licensed as a property manager in another state, the
1030		-	506
1031		-	division may require the applicant to complete a division-approved,
1032		-	507
1033		-	state-specific educational program consisting of the number of hours
1034		-	508
1035		-	designated by rule the commission makes in accordance with Title 63G,
1036		-	509
1037		-	Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of the
1038		-	510
1039		-	division.
1040		-	511
1041		-	(iv) The division shall create an educational program for a property manager license
1042		-	512
1043		-	that:
1044		-	513
1045		-	(A) requires at least 24 hours of training;
1046		-	514
1047		-	(B) covers subjects the division determines necessary for the program; and
1048		-	515
1049		-	(C) establishes the proportion of hours allocated for each subject in the program.
1050		-	516
1051		-	[(iii)] (v) An hour required by this section means 50 minutes of instruction in each 60
1052		-	517
1053		-	minutes.
1054		-	518
1055		-	[(iv)] (vi) The maximum number of program hours available to an individual is eight
1056		-	519
1057		-	hours per day.
1058		-	520
1059		-	(e)(i) Except as provided in Subsection (1)(e)(ii), the division, with the concurrence
1060		-	521
1061		-	of the commission, shall require an applicant to pass an examination approved by
1062		-	522
1063		-	the commission covering:
1064		-	523
1065		-	(A) the fundamentals of the English language;
1066		-	524
1067		-	(B) the fundamentals of arithmetic;
1068		-	525
1069		-	(C) the fundamentals of bookkeeping;
1070		-	526
1071		-	(D) the fundamentals of real estate principles and practices;
1072	1090		527
1073		-	(E) ~~this chapter;~~
	1091	+	(G) any other aspect of Utah real estate license law considered appropriate.
1074	1092		528
1075		-	(F) the ~~rules established by~~ the ~~commission with the concurrence of the division;~~
	1093	+	(ii) If on the day on which an applicant applies for a license the applicant is licensed
1076	1094		529
1077		-	~~and~~
	1095	+	as a real estate broker or a sales agent in another state, the division may, with the
1078	1096		530
1079		-	(G) any other aspect of Utah real estate license law considered appropriate.
	1097	+	concurrence of the commission, require the applicant to pass a division-approved,
	1098	+	- 16 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
1080	1099		531
1081		-	~~(ii) If on~~ the ~~day on which an applicant applies for a license the applicant is licensed~~
	1100	+	state-specific examination rather than the examination required under Subsection
1082	1101		532
1083		-	~~as a real estate broker or a sales agent in another state, the division may, with the~~
	1102	+	(1)(e)(i).
1084	1103		533
1085		-	concurrence of the ~~commission, require the applicant to pass a division-approved,~~
	1104	+	(iii) Subject to Subsection (1)(e)(iv), the division, with the concurrence of the
1086	1105		534
1087		-	~~state-specific~~ examination ~~rather than the examination required under Subsection~~
	1106	+	commission, may modify the length and material of an examination for a property
1088	1107		535
1089		-	~~(1)(e)(i).~~
	1108	+	manager license under this chapter if:
1090	1109		536
1091		-	(~~iii~~) ~~Subject to Subsection (1)(e)(iv), the division,~~ ~~with the concurrence of the~~
	1110	+	(A) an applicant is licensed as a property manager in another state;
1092	1111		537
1093		-	commission, may modify the length and material of an examination for a property
1094		-	- 16 - Enrolled Copy H.B. 337
	1112	+	(B) the division determines an applicant's prior experience warrants a modification
1095	1113		538
1096		-	~~manager license under this chapter if:~~
	1114	+	of the examination; or
1097	1115		539
1098		-	(A) an applicant ~~is licensed as a property manager in another state;~~
	1116	+	(C) the division determines the applicant has good cause for the modification of
1099	1117		540
1100		-	~~(B)~~ the ~~division determines an applicant's prior experience warrants a modification~~
	1118	+	the examination.
1101	1119		541
1102		-	~~of the~~ examination~~; or~~
	1120	+	(iv) An examination for a property manager license shall:
1103	1121		542
1104		-	(C) the ~~division determines~~ the ~~applicant has good cause for the modification of~~
	1122	+	(A) cover the topics that appear in the educational program described in
1105	1123		543
1106		-	~~the examination.~~
	1124	+	Subsection (1)(d)(iv); and
1107	1125		544
1108		-	(iv) ~~An examination~~ for ~~a property manager license shall:~~
	1126	+	(B) match the proportion of questions for each topic to the proportion of hours
1109	1127		545
1110		-	~~(A) cover~~ the ~~topics that appear~~ in ~~the educational program described in~~
	1128	+	designated by the division in accordance with Subsection (1)(d)(iv)(C).
1111	1129		546
1112		-	~~Subsection~~ (1)(d)~~(iv); and~~
	1130	+	(f)(i) Three years' full-time experience as a sales agent or [its] the equivalent is
1113	1131		547
1114		-	~~(B) match the proportion of questions~~ for ~~each topic to the proportion of hours~~
	1132	+	required before an applicant may apply for, and secure a principal broker or
1115	1133		548
1116		-	~~designated by the division~~ in ~~accordance with Subsection (1)(d)(iv)(C)~~.
	1134	+	associate broker license in this state.
1117	1135		549
1118		-	(f)~~(i) Three years' full-time experience as a sales agent or [its]~~ the ~~equivalent is~~
	1136	+	(ii) The commission shall establish by rule made in accordance with Title 63G,
1119	1137		550
1120		-	~~required before an applicant may apply for~~, ~~and secure a principal broker or~~
	1138	+	Chapter 3, Utah Administrative Rulemaking Act, subject to concurrence by the
1121	1139		551
1122		-	~~associate broker license in this state.~~
	1140	+	division, the criteria by which the commission will accept experience or special
1123	1141		552
1124		-	~~(ii)~~ The ~~commission shall establish by rule made in accordance with Title 63G,~~
	1142	+	education in similar fields of business in lieu of the three years' experience.
1125	1143		553
1126		-	~~Chapter 3~~, ~~Utah Administrative Rulemaking Act, subject to~~ concurrence by the
	1144	+	(2)(a) The division, with the concurrence of the commission, may require an applicant to
1127	1145		554
1128		-	~~division,~~ the ~~criteria by which~~ the ~~commission will accept experience or special~~
	1146	+	furnish a sworn statement setting forth evidence satisfactory to the division of the
1129	1147		555
1130		-	~~education in similar fields of business in lieu of the three years' experience~~.
	1148	+	applicant's reputation and competency as set forth by rule.
1131	1149		556
1132		-	(~~2)(a~~) The division~~, with the concurrence of the commission, may~~ require an applicant to
	1150	+	(b) The division shall require an applicant to provide the applicant's social security
1133	1151		557
1134		-	~~furnish~~ a ~~sworn statement setting forth evidence satisfactory to the division of the~~
	1152	+	number, which is a private record under Subsection 63G-2-302(1)(i).
1135	1153		558
1136		-	~~applicant's reputation and competency as set forth by rule.~~
	1154	+	(3)(a) An individual who is not a resident of this state may be licensed in this state if the [
1137	1155		559
1138		-	~~(b) The division shall require an applicant to provide the applicant's social security~~
	1156	+	person] individual complies with this chapter.
1139	1157		560
1140		-	~~number, which~~ is a ~~private record under Subsection 63G-2-302(1)(i).~~
	1158	+	(b) An individual who is not a resident of this state may be licensed as an associate
1141	1159		561
1142		-	~~(3)(a) An individual who is not a resident of this state may be licensed~~ in this state ~~if the [~~
	1160	+	broker or sales agent in this state by:
1143	1161		562
1144		-	~~person] individual complies~~ with this chapter.
	1162	+	(i) complying with this chapter; and
1145	1163		563
1146		-	(b) ~~An individual who is not a resident of this state may be licensed~~ as an ~~associate~~
	1164	+	(ii) being employed or engaged as an independent contractor by or on behalf of a
1147	1165		564
1148		-	broker or sales agent in this state by:
	1166	+	principal broker who is licensed in this state, regardless of whether the principal
	1167	+	- 17 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
1149	1168		565
1150		-	~~(i) complying with~~ this ~~chapter; and~~
	1169	+	broker is a resident of this state.
1151	1170		566
1152		-	(ii) ~~being employed or engaged as an independent contractor by or on behalf~~ of a
	1171	+	(4) The division, with the concurrence of the commission, may enter into a reciprocal
1153	1172		567
1154		-	principal broker ~~who is licensed in this state~~, ~~regardless of whether the principal~~
	1173	+	licensing agreement with another jurisdiction for the licensure of a principal broker, an
1155	1174		568
1156		-	broker is a ~~resident of this state.~~
	1175	+	associate broker, or a sales agent, if the jurisdiction's requirements and standards for the
1157	1176		569
1158		-	~~(4) The division,~~ ~~with the concurrence~~ of ~~the commission, may enter into a reciprocal~~
	1177	+	license are substantially similar to those of this state.
1159	1178		570
1160		-	~~licensing agreement with another jurisdiction for~~ the ~~licensure~~ of ~~a principal broker,~~ an
	1179	+	(5)(a) The division and commission shall treat an application to be relicensed of an
1161	1180		571
1162		-	associate broker, or a sales agent, if the jurisdiction's requirements and standards for the
1163		-	- 17 - H.B. 337 Enrolled Copy
	1181	+	applicant whose real estate license is revoked as an original application.
1164	1182		572
1165		-	~~license are substantially similar to those~~ of ~~this state.~~
	1183	+	(b) In the case of an applicant for a new license as a principal broker or associate broker,
1166	1184		573
1167		-	~~(5)(a)~~ The ~~division and commission shall treat an application to be relicensed~~ of an
	1185	+	the applicant is not entitled to credit for experience gained before the revocation of a
1168	1186		574
1169		-	~~applicant whose~~ real estate license ~~is revoked as an original application~~.
	1187	+	real estate license.
1170	1188		575
1171		-	(b) In the ~~case of an applicant for a new license as a principal broker or associate broker,~~
	1189	+	(6)(a) Notwithstanding Subsection (1)(b), the commission may delegate to the division
1172	1190		576
1173		-	the ~~applicant is not entitled~~ to ~~credit for experience gained before the revocation of a~~
	1191	+	the authority to:
1174	1192		577
1175		-	~~real estate license.~~
	1193	+	(i) review a class or category of applications for initial or renewed licenses;
1176	1194		578
1177		-	(~~6)(a~~) ~~Notwithstanding~~ Subsection (1)~~(b), the commission may delegate to the division~~
	1195	+	(ii) determine whether an applicant meets the licensing criteria in Subsection (1); and
1178	1196		579
1179		-	the ~~authority to:~~
	1197	+	(iii) approve or deny a license application without concurrence by the commission.
1180	1198		580
1181		-	(i) ~~review a class~~ or ~~category of applications for initial or renewed licenses;~~
	1199	+	(b)(i) If the commission delegates to the division the authority to approve or deny an
1182	1200		581
1183		-	~~(ii) determine whether an applicant meets~~ the ~~licensing criteria in Subsection (1);~~ and
	1201	+	application without concurrence by the commission and the division denies an
1184	1202		582
1185		-	~~(iii) approve or deny a license~~ application ~~without concurrence by~~ the ~~commission.~~
	1203	+	application for licensure, the applicant who is denied licensure may petition the
1186	1204		583
1187		-	~~(b)(i) If~~ the ~~commission delegates to the division the authority to approve or deny an~~
	1205	+	commission for de novo review of the application.
1188	1206		584
1189		-	~~application without concurrence by the commission and the division denies~~ an
	1207	+	(ii) An applicant who is denied licensure pursuant to this Subsection (6) may seek
1190	1208		585
1191		-	~~application for licensure,~~ the ~~applicant who is denied licensure may petition~~ the
	1209	+	agency review by the executive director only after the commission has reviewed
1192	1210		586
1193		-	~~commission for de novo review~~ of the application.
	1211	+	the division's denial of the applicant's application.
1194	1212		587
1195		-	(ii) An ~~applicant who is denied licensure pursuant to this Subsection (6)~~ may ~~seek~~
	1213	+	(7) An individual with an active broker, associate broker, or sales agent license may obtain
1196	1214		588
1197		-	~~agency review by the executive director only after the commission has reviewed~~
	1215	+	a property manager license without:
1198	1216		589
1199		-	~~the division's denial of~~ the ~~applicant's application.~~
	1217	+	(a) meeting the education requirement described in Subsection (1)(d)(iii); or
1200	1218		590
1201		-	(7) An ~~individual with an active broker,~~ ~~associate broker, or sales agent~~ license ~~may obtain~~
	1219	+	(b) passing an exam required for a property manager license under Subsection (1)(e).
1202	1220		591
1203		-	~~a property manager license without~~:
	1221	+	Section 7. Section 61-2f-204 is amended to read:
1204	1222		592
1205		-	~~(a) meeting the education requirement described in Subsection (1)(d)(iii); or~~
	1223	+	61-2f-204 . Licensing fees and procedures -- Renewal fees and procedures.
1206	1224		593
1207		-	(b) ~~passing~~ an ~~exam required~~ for a ~~property manager~~ license under ~~Subsection (1)(e).~~
	1225	+	(1)(a) Upon filing an application for an examination for a license under this chapter, the
1208	1226		594
1209		-	~~Section 7.~~ Section ~~61-2f-204 is amended to read:~~
	1227	+	applicant shall pay a nonrefundable fee established in accordance with Section
1210	1228		595
1211		-	~~61-2f-204~~ . ~~Licensing fees and procedures -- Renewal fees and procedures.~~
	1229	+	63J-1-504 for admission to the examination.
1212	1230		596
1213		-	(1)~~(a) Upon filing~~ an ~~application for an examination~~ for a ~~license under this chapter~~, ~~the~~
	1231	+	(b) An applicant for a principal broker, associate broker, [or ]sales agent, or property
1214	1232		597
1215		-	~~applicant~~ shall pay a nonrefundable fee ~~established in accordance~~ with ~~Section~~
	1233	+	manager license shall pay a nonrefundable fee as determined by the commission with
1216	1234		598
1217		-	63J-1-504 for admission to the examination.
	1235	+	the concurrence of the division under Section 63J-1-504 for issuance of an initial
	1236	+	- 18 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
1218	1237		599
1219		-	~~(b) An applicant for a principal broker, associate broker, [or ]sales agent,~~ or ~~property~~
	1238	+	license or license renewal.
1220	1239		600
1221		-	~~manager~~ license shall ~~pay a nonrefundable fee as determined by~~ the ~~commission with~~
	1240	+	(c) [A license issued under this Subsection (1) shall be issued] The division shall issue a
1222	1241		601
1223		-	~~the concurrence~~ of the ~~division under Section 63J-1-504 for issuance of an initial~~
	1242	+	license under this Subsection (1) for a period of not less than two years as the
1224	1243		602
1225		-	~~license or license renewal~~.
	1244	+	division determines with the concurrence of the commission.
1226	1245		603
1227		-	(c) ~~[A license issued under~~ this Subsection (1) ~~shall be issued] The division shall issue a~~
	1246	+	(d)(i) Each of the following applicants shall comply with this Subsection (1)(d):
1228	1247		604
1229		-	~~license under this Subsection~~ (1) ~~for~~ a ~~period of not less than two years as the~~
	1248	+	(A) a new sales agent applicant;
1230	1249		605
1231		-	division determines with the concurrence of the commission.
1232		-	- 18 - Enrolled Copy H.B. 337
	1250	+	(B) a principal broker applicant;[ and]
1233	1251		606
1234		-	(~~d)(i~~) ~~Each of the following applicants shall comply with this Subsection (1)(d):~~
	1252	+	(C) an associate broker applicant[.] ; and
1235	1253		607
1236		-	(A) a ~~new sales agent~~ applicant;
	1254	+	(D) a property manager applicant.
1237	1255		608
1238		-	(B) ~~a principal broker~~ applicant;[ ~~and]~~
	1256	+	(ii) An applicant described in this Subsection (1)(d) shall at the time the [licensee]
1239	1257		609
1240		-	~~(C)~~ an ~~associate broker applicant[.] ; and~~
	1258	+	applicant files an application:
1241	1259		610
1242		-	(D) a ~~property manager applicant.~~
	1260	+	(A) submit to the division fingerprint cards in a form acceptable to the Department
1243	1261		611
1244		-	~~(ii) An applicant described in this Subsection (1)(d) shall at the time the [licensee]~~
	1262	+	of Public Safety;
1245	1263		612
1246		-	~~applicant files an application:~~
	1264	+	(B) submit to the division a signed waiver in accordance with Subsection
1247	1265		613
1248		-	(A) ~~submit to~~ the ~~division fingerprint cards in a form acceptable to~~ the ~~Department~~
	1266	+	53-10-108(4), acknowledging the registration of the applicant's fingerprints in
1249	1267		614
1250		-	of ~~Public Safety;~~
	1268	+	the Federal Bureau of Investigation Next Generation Identification System's
1251	1269		615
1252		-	~~(B) submit to the division a signed waiver in accordance with Subsection~~
	1270	+	Rap Back Service[ beginning January 1, 2020];
1253	1271		616
1254		-	~~53-10-108~~(4)~~, acknowledging~~ the ~~registration~~ of ~~the applicant's fingerprints in~~
	1272	+	(C) consent to a criminal background check by the Utah Bureau of Criminal
1255	1273		617
1256		-	the Federal Bureau of Investigation ~~Next Generation Identification System's~~
	1274	+	Identification and the Federal Bureau of Investigation; and
1257	1275		618
1258		-	~~Rap Back Service~~[ ~~beginning January 1, 2020];~~
	1276	+	(D) pay the fee the division establishes in accordance with Subsection [(1)(d)(vi)]
1259	1277		619
1260		-	(C) ~~consent to a criminal background check by the Utah Bureau of Criminal~~
	1278	+	(1)(d)(iv).
1261	1279		620
1262		-	~~Identification and~~ the ~~Federal~~ Bureau of ~~Investigation; and~~
	1280	+	(iii) The Bureau of Criminal Identification shall:
1263	1281		621
1264		-	(D) ~~pay~~ the ~~fee the division establishes in accordance with~~ Subsection [(1)(d)(vi)]
	1282	+	(A) check the fingerprints an applicant submits under Subsection (1)(d)(ii) against
1265	1283		622
1266		-	~~(1)(d)(iv).~~
	1284	+	the applicable state, regional, and national criminal records databases, including[
1267	1285		623
1268		-	~~(iii)~~ The Bureau of ~~Criminal Identification shall:~~
	1286	+	, beginning January 1, 2020,] the Federal Bureau of Investigation Next
1269	1287		624
1270		-	~~(A) check the fingerprints an applicant submits under Subsection (1)(d)(ii) against~~
	1288	+	Generation Identification System;
1271	1289		625
1272		-	the ~~applicable state,~~ ~~regional, and national criminal records databases, including[~~
	1290	+	(B) report the results of the background check to the division;
1273	1291		626
1274		-	~~, beginning January 1,~~ ~~2020,] the Federal Bureau~~ of ~~Investigation Next~~
	1292	+	(C) maintain a separate file of fingerprints that applicants submit under Subsection
1275	1293		627
1276		-	~~Generation Identification System;~~
	1294	+	(1)(d) for search by future submissions to the local and regional criminal
1277	1295		628
1278		-	~~(B) report the results of the background check to the division~~;
	1296	+	records databases, including latent prints;
1279	1297		629
1280		-	(C) ~~maintain a separate file of~~ fingerprints ~~that applicants submit under Subsection~~
	1298	+	(D) request that[ beginning January 1, 2020,] the fingerprints be retained in the
1281	1299		630
1282		-	~~(1)(d) for search by future submissions to the local and regional criminal~~
	1300	+	Federal Bureau of Investigation Next Generation Identification System's Rap
1283	1301		631
1284		-	records ~~databases, including latent prints;~~
	1302	+	Back Service for search by future submissions to national criminal records
1285	1303		632
1286		-	(D) request that[ beginning January 1, 2020,] the fingerprints be retained in the
	1304	+	databases, including the Next Generation Identification System and latent
	1305	+	- 19 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
1287	1306		633
1288		-	~~Federal Bureau of Investigation Next Generation Identification System's Rap~~
	1307	+	prints; and
1289	1308		634
1290		-	~~Back Service~~ for ~~search by future submissions to national criminal records~~
	1309	+	(E) ensure that the division only receives notifications for an individual with
1291	1310		635
1292		-	~~databases, including~~ the ~~Next Generation Identification System and latent~~
	1311	+	whom the division maintains permission to receive notifications.
1293	1312		636
1294		-	~~prints; and~~
	1313	+	(iv)(A) The division shall assess an applicant who submits fingerprints under this
1295	1314		637
1296		-	(E) ~~ensure~~ that the division ~~only receives notifications for an individual with~~
	1315	+	Subsection (1)(d) or (2)(f) a fee in an amount that the division sets in
1297	1316		638
1298		-	~~whom~~ the division ~~maintains permission to receive notifications.~~
	1317	+	accordance with Section 63J-1-504 for services that the division and the
1299	1318		639
1300		-	(iv)(A) The division shall assess an applicant who submits fingerprints under this
1301		-	- 19 - H.B. 337 Enrolled Copy
	1319	+	Bureau of Criminal Identification or another authorized agency provide under
1302	1320		640
1303		-	Subsection (1)(d) or (2)(f) ~~a fee in an amount that the division sets in~~
	1321	+	this Subsection (1)(d) or (2)(f).
1304	1322		641
1305		-	~~accordance with Section 63J-1-504 for services that~~ the division ~~and the~~
	1323	+	(B) The Bureau of Criminal Identification may collect from the division money
1306	1324		642
1307		-	~~Bureau of Criminal Identification or another authorized agency provide~~ under
	1325	+	for services provided under this section.
1308	1326		643
1309		-	~~this Subsection~~ (~~1)(d~~) ~~or (2)(f).~~
	1327	+	(v) Money paid to the division by an applicant for the cost of the criminal
1310	1328		644
1311		-	~~(B) The Bureau of Criminal Identification may collect from the division money~~
	1329	+	background check is nonlapsing.
1312	1330		645
1313		-	~~for services provided under this section.~~
	1331	+	(vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1314	1332		646
1315		-	~~(v) Money paid to~~ the ~~division by an applicant for the cost~~ of the ~~criminal~~
	1333	+	and with the concurrence of the division, the commission may make rules for the
1316	1334		647
1317		-	~~background check is nonlapsing.~~
	1335	+	administration of this Subsection (1)(d) and Subsection (2)(f) regarding criminal
1318	1336		648
1319		-	~~(vi) In accordance~~ with ~~Title 63G, Chapter 3, Utah Administrative Rulemaking Act,~~
	1337	+	background checks with ongoing monitoring.
1320	1338		649
1321		-	~~and with the concurrence~~ of ~~the division, the commission may make rules for the~~
	1339	+	(e)(i) A license issued under Subsection (1)(d) is conditional, pending completion of
1322	1340		650
1323		-	~~administration of this Subsection (1)(d) and Subsection (2)(f) regarding~~ criminal
	1341	+	the criminal background check.
1324	1342		651
1325		-	background ~~checks with ongoing monitoring.~~
	1343	+	(ii) If a criminal background check discloses that an applicant fails to accurately
1326	1344		652
1327		-	~~(e)(i)~~ A ~~license issued under Subsection (1)(d) is conditional~~, ~~pending completion of~~
	1345	+	disclose a criminal history, the division:
1328	1346		653
1329		-	the ~~criminal background check.~~
	1347	+	(A) shall review the application; and
1330	1348		654
1331		-	(ii) ~~If a criminal background check discloses that an applicant fails~~ to ~~accurately~~
	1349	+	(B) in accordance with rules made by the division pursuant to Title 63G, Chapter
1332	1350		655
1333		-	~~disclose a criminal history~~, ~~the division~~:
	1351	+	3, Utah Administrative Rulemaking Act, may:
1334	1352		656
1335		-	(A) ~~shall review the application~~; ~~and~~
	1353	+	(I) place a condition on a license;
1336	1354		657
1337		-	(B) ~~in accordance with rules made by the division pursuant to Title 63G, Chapter~~
	1355	+	(II) place a restriction on a license;
1338	1356		658
1339		-	~~3, Utah Administrative Rulemaking Act, may:~~
	1357	+	(III) revoke a license; or
1340	1358		659
1341		-	(I) ~~place~~ a ~~condition on a license;~~
	1359	+	(IV) refer the application to the commission for a decision.
1342	1360		660
1343		-	(II) ~~place~~ a ~~restriction on a~~ license;
	1361	+	(iii)(A) [A person] An individual whose conditional license is conditioned,
1344	1362		661
1345		-	(~~III~~) ~~revoke~~ a ~~license; or~~
	1363	+	restricted, or revoked under Subsection (1)(e)(ii) may have a hearing after the
1346	1364		662
1347		-	~~(IV) refer~~ the ~~application to the commission for a decision~~.
	1365	+	action is taken to challenge the action.
1348	1366		663
1349		-	(iii)(A) ~~[A person] An individual whose conditional license is conditioned,~~
	1367	+	(B) The division shall conduct a hearing described in Subsection (1)(e)(iii)(A) in
1350	1368		664
1351		-	~~restricted~~, ~~or revoked under Subsection (1)(e)(ii) may have a hearing after the~~
	1369	+	accordance with Title 63G, Chapter 4, Administrative Procedures Act.
1352	1370		665
1353		-	~~action is taken~~ to ~~challenge~~ the ~~action.~~
	1371	+	(iv) The director shall designate one of the following to act as the presiding officer in
1354	1372		666
1355		-	(B) The division shall conduct a hearing described in Subsection (1)(e)(iii)(A) in
	1373	+	a hearing described in Subsection (1)(e)(iii)(A):
	1374	+	- 20 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
1356	1375		667
1357		-	~~accordance with Title 63G, Chapter 4, Administrative Procedures Act.~~
	1376	+	(A) the division; or
1358	1377		668
1359		-	(iv) The ~~director shall designate one~~ of the ~~following to act as the presiding officer in~~
	1378	+	(B) the division with the concurrence of the commission.
1360	1379		669
1361		-	~~a hearing described in Subsection (1)(e)(iii)(A):~~
	1380	+	(v) The presiding officer shall decide whether to grant relief from an action under this
1362	1381		670
1363		-	(A) ~~the division; or~~
	1382	+	Subsection (1)(e)[ is granted].
1364	1383		671
1365		-	(B) ~~the division with the concurrence of the commission.~~
	1384	+	(vi) If a license is revoked or a revocation under this Subsection (1)(e) is upheld after
1366	1385		672
1367		-	~~(v)~~ The ~~presiding officer shall decide whether to grant relief from an action under this~~
	1386	+	a hearing, the individual may not apply for a new license until at least 12 months
1368	1387		673
1369		-	Subsection (1)(e)[ is granted].
1370		-	- 20 - Enrolled Copy H.B. 337
	1388	+	after the day on which the license is revoked.
1371	1389		674
1372		-	(vi) If a license is ~~revoked~~ or ~~a revocation under this Subsection (1)(e) is upheld after~~
	1390	+	(2)(a)(i) A license expires if [it] the license is not renewed on or before the expiration
1373	1391		675
1374		-	~~a hearing,~~ the ~~individual may not apply for a new~~ license ~~until at least 12 months~~
	1392	+	date of the license.
1375	1393		676
1376		-	~~after the day on which the license is revoked.~~
	1394	+	(ii) As a condition of renewal, an active licensee shall demonstrate competence by
1377	1395		677
1378		-	~~(2)(a)(i)~~ A ~~license expires if [it] the license is not renewed on or before the expiration~~
	1396	+	completing 18 hours of continuing education within a two-year renewal period
1379	1397		678
1380		-	~~date~~ of the ~~license~~.
	1398	+	subject to rules made by the commission, with the concurrence of the division.
1381	1399		679
1382		-	(ii) ~~As a condition of renewal~~, ~~an active licensee shall demonstrate competence by~~
	1400	+	(iii) In making a rule described in Subsection (2)(c)(ii), the division and commission
1383	1401		680
1384		-	~~completing 18 hours of continuing education within a two-year renewal period~~
	1402	+	shall consider:
1385	1403		681
1386		-	~~subject to rules made by~~ the ~~commission~~, ~~with the concurrence of the division.~~
	1404	+	(A) evaluating continuing education [on the basis of] based on competency, rather
1387	1405		682
1388		-	~~(iii) In making a rule described in Subsection (2)(c)(ii), the division and commission~~
	1406	+	than course time;
1389	1407		683
1390		-	~~shall consider:~~
	1408	+	(B) allowing completion of courses in a significant variety of topic areas that the
1391	1409		684
1392		-	~~(A) evaluating continuing education [on~~ ~~the basis of]~~ ~~based on competency, rather~~
	1410	+	division and commission determine are valuable in assisting an individual
1393	1411		685
1394		-	~~than course time~~;
	1412	+	licensed under this chapter to increase the individual's competency; and
1395	1413		686
1396		-	(B) allowing completion of courses in a ~~significant variety of topic areas that the~~
	1414	+	(C) allowing completion of courses that will increase a licensee's professional
1397	1415		687
1398		-	~~division and commission determine are valuable~~ in ~~assisting an individual~~
	1416	+	competency in the area of practice of the licensee.
1399	1417		688
1400		-	~~licensed under this chapter~~ to ~~increase the individual's competency;~~ ~~and~~
	1418	+	(iv) The division may award credit to a licensee for a continuing education
1401	1419		689
1402		-	~~(C) allowing completion~~ of ~~courses that will increase~~ a ~~licensee's professional~~
	1420	+	requirement of this Subsection (2)(a) for a reasonable [period of time] time period
1403	1421		690
1404		-	~~competency in the area~~ of ~~practice of the licensee.~~
	1422	+	upon a finding of reasonable cause, including:
1405	1423		691
1406		-	(iv) ~~The division may award credit to a licensee for a continuing education~~
	1424	+	(A) military service; or
1407	1425		692
1408		-	~~requirement of this Subsection~~ (~~2)(a~~) ~~for a reasonable [period~~ ~~of time]~~ ~~time period~~
	1426	+	(B) if an individual is elected or appointed to government service, the individual's
1409	1427		693
1410		-	~~upon~~ a ~~finding of reasonable cause, including:~~
	1428	+	government service during which the individual spends a substantial time
1411	1429		694
1412		-	~~(A) military service;~~ or
	1430	+	addressing real estate issues subject to conditions established by rule made in
1413	1431		695
1414		-	~~(B) if an individual is elected or appointed to government service~~, ~~the individual's~~
	1432	+	accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1415	1433		696
1416		-	~~government service during~~ which the ~~individual spends a substantial time~~
	1434	+	(b) For a period of 30 days after the day on which a license expires, [the license may be
1417	1435		697
1418		-	~~addressing real estate issues subject to conditions established by rule made in~~
	1436	+	reinstated] the division may reinstate the license:
1419	1437		698
1420		-	~~accordance with Title 63G,~~ ~~Chapter 3,~~ ~~Utah Administrative Rulemaking Act.~~
	1438	+	(i) if the applicant's license was inactive on the day on which the applicant's license
1421	1439		699
1422		-	~~(b) For~~ a ~~period of 30 days after the day on which~~ a ~~license expires,~~ [the ~~license may be~~
	1440	+	expired, upon payment of a renewal fee and a late fee determined by the
1423	1441		700
1424		-	reinstated] the division may reinstate the license:
	1442	+	commission with the concurrence of the division under Section 63J-1-504; or
	1443	+	- 21 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
1425	1444		701
1426		-	(i) if the applicant's license was ~~inactive~~ on the day on which the applicant's license
	1445	+	(ii) if the applicant's license was active on the day on which the applicant's license
1427	1446		702
1428	1447		expired, upon payment of a renewal fee and a late fee determined by the
1429	1448		703
1430		-	commission with the concurrence of the division under Section 63J-1-504~~; or~~
	1449	+	commission with the concurrence of the division under Section 63J-1-504, and
1431	1450		704
1432		-	~~(ii) if~~ the ~~applicant's license was active on~~ the ~~day on which~~ the ~~applicant's license~~
	1451	+	providing proof acceptable to the division and the commission of the licensee
1433	1452		705
1434		-	~~expired, upon payment of a renewal fee and a late fee determined by the~~
	1453	+	having:
1435	1454		706
1436		-	~~commission with~~ the ~~concurrence~~ of ~~the division under Section 63J-1-504, and~~
	1455	+	(A) completed the hours of education required by Subsection (2)(a); or
1437	1456		707
1438		-	providing proof acceptable to the division and the commission of the licensee
1439		-	- 21 - H.B. 337 Enrolled Copy
	1457	+	(B) demonstrated competence as required under Subsection (2)(a).
1440	1458		708
1441		-	~~having:~~
	1459	+	(c) After the 30-day period described in Subsection (2)(b), and until one year after the
1442	1460		709
	1461	+	day on which an active or inactive license expires, the division may reinstate the
	1462	+	710
	1463	+	license [may be reinstated by] if the applicant:
	1464	+	711
	1465	+	(i) [paying] pays a renewal fee and a late fee determined by the commission with the
	1466	+	712
	1467	+	concurrence of the division under Section 63J-1-504; and
	1468	+	713
	1469	+	(ii) [providing] provides proof acceptable to the division and the commission of the
	1470	+	714
	1471	+	licensee having:
	1472	+	715
1443	1473		(A) completed the hours of education required by Subsection (2)(a); or
1444		-	~~710~~
	1474	+	716
1445	1475		(B) demonstrated competence as required under Subsection (2)(a).
1446		-	711
1447		-	(c) After the 30-day period described in Subsection (2)(b), and until one year after the
1448		-	712
1449		-	day on which an active or inactive license expires, the division may reinstate the
1450		-	713
1451		-	license [may be reinstated by] if the applicant:
1452		-	714
1453		-	(i) [paying] pays a renewal fee and a late fee determined by the commission with the
1454		-	715
1455		-	concurrence of the division under Section 63J-1-504; and
1456		-	716
1457		-	(ii) [providing] provides proof acceptable to the division and the commission of the
1458	1476		717
1459		-	~~licensee having:~~
	1477	+	(d) The division shall relicense [a person] an individual who does not renew that [person's]
1460	1478		718
1461		-	~~(A) completed the hours of education required by Subsection (2)(a); or~~
	1479	+	individual's license within one year as prescribed for an original application.
1462	1480		719
1463		-	(B) ~~demonstrated competence as required under~~ Subsection (2)(a).
	1481	+	(e) Notwithstanding Subsection (2)(a), the division may extend the term of a license that
1464	1482		720
1465		-	(d) The ~~division shall relicense [a person] an individual who does not renew that [person's]~~
	1483	+	would expire under Subsection (2)(a) except for the extension if:
1466	1484		721
1467		-	individual~~'s license within one year as prescribed for an original application.~~
	1485	+	(i)(A) the [person] individual complies with the requirements of this section to
1468	1486		722
1469		-	~~(e) Notwithstanding Subsection (2)(a),~~ the ~~division may extend the term of a license that~~
	1487	+	renew the license; and
1470	1488		723
1471		-	~~would expire under Subsection~~ (~~2)(a~~) ~~except for~~ the extension ~~if:~~
	1489	+	(B) the renewal application remains pending at the time of the extension; or
1472	1490		724
1473		-	(i)~~(A)~~ the ~~[person] individual complies with~~ the ~~requirements of~~ this ~~section to~~
	1491	+	(ii) at the time of the extension, there is pending a disciplinary action under this
1474	1492		725
1475		-	~~renew the license; and~~
	1493	+	chapter.
1476	1494		726
1477		-	(B) ~~the~~ renewal ~~application remains pending at the time~~ of ~~the extension; or~~
	1495	+	(f) [Beginning January 1, 2020, each] Each applicant for renewal or reinstatement of a
1478	1496		727
1479		-	~~(ii) at the time of the extension, there is pending~~ a ~~disciplinary action under this~~
	1497	+	license to practice as a sales agent, principal broker, [or ]associate broker, or a
1480	1498		728
1481		-	~~chapter.~~
	1499	+	property manager, who is not already subject to ongoing monitoring of the
1482	1500		729
1483		-	~~(f) [Beginning~~ ~~January 1~~, ~~2020, each]~~ ~~Each applicant~~ for renewal or ~~reinstatement of a~~
	1501	+	individual's criminal history shall, at the time the application for renewal or
1484	1502		730
1485		-	~~license to practice as a sales agent, principal broker, [or ]associate broker, or a~~
	1503	+	reinstatement is filed:
1486	1504		731
1487		-	~~property manager,~~ ~~who is not already subject~~ to ~~ongoing monitoring~~ of ~~the~~
	1505	+	(i) submit fingerprint cards in a form acceptable to the Department of Public Safety;
1488	1506		732
1489		-	~~individual's criminal history shall, at~~ the ~~time the application for renewal or~~
	1507	+	(ii) submit to the division a signed waiver in accordance with Subsection
1490	1508		733
1491		-	~~reinstatement is filed:~~
	1509	+	53-10-108(4), acknowledging the registration of the applicant's fingerprints in the
1492	1510		734
1493		-	(i) submit fingerprint cards in a form acceptable to the Department of Public Safety;
	1511	+	Federal Bureau of Investigation Next Generation Identification System's Rap
	1512	+	- 22 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
1494	1513		735
1495		-	~~(ii) submit to the division a signed waiver in accordance with Subsection~~
	1514	+	Back Service;
1496	1515		736
1497		-	~~53-10-108~~(4)~~, acknowledging~~ the ~~registration~~ of ~~the applicant's fingerprints in the~~
	1516	+	(iii) consent to a fingerprint background check by the Utah Bureau of Criminal
1498	1517		737
1499		-	Federal Bureau of Investigation ~~Next Generation Identification System's Rap~~
	1518	+	Identification and the Federal Bureau of Investigation; and
1500	1519		738
1501		-	~~Back Service;~~
	1520	+	(iv) pay the fee the division establishes in accordance with Subsection (1)(d)(iv).
1502	1521		739
1503		-	(~~iii~~) ~~consent to~~ a ~~fingerprint background check by~~ the ~~Utah Bureau~~ of ~~Criminal~~
	1522	+	(3)(a) As a condition for the activation of an inactive license that was in an inactive
1504	1523		740
1505		-	~~Identification and~~ the ~~Federal Bureau~~ of ~~Investigation; and~~
	1524	+	status at the time of the licensee's most recent renewal, the licensee shall supply the
1506	1525		741
1507		-	(iv) pay the fee the division establishes in accordance with Subsection (1)(d)(iv).
1508		-	- 22 - Enrolled Copy H.B. 337
	1526	+	division with proof of:
1509	1527		742
1510		-	(~~3)(a~~) ~~As a condition for~~ the ~~activation of an inactive license that was in an inactive~~
	1528	+	(i) successful completion of the respective sales agent or principal broker licensing
1511	1529		743
1512		-	~~status at~~ the ~~time of the licensee's most recent renewal,~~ the licensee ~~shall supply the~~
	1530	+	examination within six months before the day on which the licensee applies to
1513	1531		744
1514		-	~~division with proof of:~~
	1532	+	activate the license; or
1515	1533		745
1516		-	(i) successful completion of the ~~respective sales agent or principal broker licensing~~
	1534	+	(ii) the successful completion of the hours of continuing education that the licensee
1517	1535		746
1518		-	~~examination within six months before~~ the ~~day on which the licensee applies to~~
	1536	+	would have been required to complete under Subsection (2)(a) if the license had
1519	1537		747
1520		-	~~activate~~ the ~~license; or~~
	1538	+	been on active status at the time of the licensee's most recent renewal.
1521	1539		748
1522		-	(ii) the ~~successful completion of the hours of continuing education that the licensee~~
	1540	+	(b) The commission may, in accordance with Title 63G, Chapter 3, Utah Administrative
1523	1541		749
1524		-	~~would have been required~~ to ~~complete under Subsection (2)(a) if~~ the ~~license had~~
	1542	+	Rulemaking Act, subject to concurrence by the division, establish by rule:
1525	1543		750
1526		-	~~been on active status at~~ the ~~time~~ of ~~the licensee's most recent renewal.~~
	1544	+	(i) the nature or type of continuing education required for reactivation of a license;
1527	1545		751
1528		-	~~(b) The commission may, in accordance with Title 63G, Chapter 3, Utah Administrative~~
	1546	+	and
1529	1547		752
1530		-	~~Rulemaking Act,~~ ~~subject to concurrence by~~ the ~~division, establish by rule:~~
	1548	+	(ii) how long before reactivation the continuing education must be completed.
1531	1549		753
1532		-	~~(i) the nature or type of continuing education required for reactivation of a license;~~
	1550	+	Section 8. Section 61-2f-206 is amended to read:
1533	1551		754
1534		-	~~and~~
	1552	+	61-2f-206 . Registration of person or branch office -- Certification of education
1535	1553		755
1536		-	~~(ii) how long before reactivation the continuing education must be completed~~.
	1554	+	providers and courses -- Specialized licenses.
1537	1555		756
1538		-	~~Section 8.~~ Section 61-2f-~~206 is amended to read:~~
	1556	+	(1)(a) A person may not engage in an activity described in Section 61-2f-201, unless the
1539	1557		757
1540		-	~~61-2f-206 . Registration of~~ person ~~or branch office --~~ ~~Certification of education~~
	1558	+	person is registered with the division.
1541	1559		758
1542		-	~~providers and courses --~~ ~~Specialized licenses.~~
	1560	+	(b) To register with the division under this Subsection (1), a person shall submit to the
1543	1561		759
1544		-	~~(1)(a) A person may not engage in an activity described in Section 61-2f-201, unless the~~
	1562	+	division:
1545	1563		760
1546		-	~~person is registered with~~ the division.
	1564	+	(i) an application in a form required by the division;
1547	1565		761
1548		-	(b) ~~To register~~ with ~~the division under this Subsection (1),~~ a ~~person shall submit to the~~
	1566	+	(ii) evidence of an affiliation with a principal broker;
1549	1567		762
1550		-	division:
	1568	+	(iii) evidence that the person is registered and in good standing with the Division of
1551	1569		763
1552		-	~~(i) an application in a form required by the division;~~
	1570	+	Corporations and Commercial Code; and
1553	1571		764
1554		-	(ii) ~~evidence~~ of ~~an affiliation with a principal broker;~~
	1572	+	(iv) a registration fee established by the commission with the concurrence of the
1555	1573		765
1556		-	~~(iii) evidence that the person is registered and in good standing with the~~ Division of
	1574	+	division under Section 63J-1-504.
1557	1575		766
1558		-	~~Corporations and Commercial Code;~~ ~~and~~
	1576	+	(c) The division may terminate a person's registration if:
1559	1577		767
1560		-	(iv) ~~a registration fee established by~~ the ~~commission~~ with the ~~concurrence~~ of ~~the~~
	1578	+	(i) the person's registration with the Division of Corporations and Commercial Code
1561	1579		768
	1580	+	has been expired for at least three years; and
	1581	+	- 23 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
	1582	+	769
	1583	+	(ii) the person's license with the division has been inactive for at least three years.
	1584	+	770
	1585	+	(2)(a) A principal broker shall register with the division each of the principal broker's
	1586	+	771
	1587	+	branch offices.
	1588	+	772
	1589	+	(b) To register a branch office with the division under this Subsection (2), a principal
	1590	+	773
	1591	+	broker shall submit to the division:
	1592	+	774
	1593	+	(i) an application in a form required by the division; and
	1594	+	775
	1595	+	(ii) a registration fee established by the commission with the concurrence of the
	1596	+	776
1562	1597		division under Section 63J-1-504.
1563		-	769
1564		-	(c) The division may terminate a person's registration if:
1565		-	770
1566		-	(i) the person's registration with the Division of Corporations and Commercial Code
1567		-	771
1568		-	has been expired for at least three years; and
1569		-	772
1570		-	(ii) the person's license with the division has been inactive for at least three years.
1571		-	773
1572		-	(2)(a) A principal broker shall register with the division each of the principal broker's
1573		-	774
1574		-	branch offices.
1575		-	775
1576		-	(b) To register a branch office with the division under this Subsection (2), a principal
1577		-	- 23 - H.B. 337 Enrolled Copy
1578		-	776
1579		-	broker shall submit to the division:
1580	1598		777
1581		-	(i) ~~an application~~ in ~~a form required~~ by the ~~division; and~~
	1599	+	(3)(a) In accordance with rules made by the commission with the concurrence of the
1582	1600		778
1583		-	~~(ii) a registration fee established by the commission~~ with ~~the concurrence of the~~
	1601	+	division and in accordance with Title 63G, Chapter 3, Utah Administrative
1584	1602		779
1585		-	division ~~under Section 63J-1-504.~~
	1603	+	Rulemaking Act, the division shall certify:
1586	1604		780
1587		-	(~~3)(a~~) ~~In accordance with rules made by the commission with the concurrence of the~~
	1605	+	(i) a real estate school;
1588	1606		781
1589		-	~~division and in accordance with Title 63G, Chapter 3, Utah Administrative~~
	1607	+	(ii) a course provider; or
1590	1608		782
1591		-	~~Rulemaking Act,~~ ~~the division shall certify:~~
	1609	+	(iii) an instructor.
1592	1610		783
1593		-	(i) ~~a real estate school;~~
	1611	+	(b) In accordance with rules made by the commission in accordance with Title 63G,
1594	1612		784
1595		-	~~(ii) a course provider;~~ or
	1613	+	Chapter 3, Utah Administrative Rulemaking Act, subject to concurrence by the
1596	1614		785
1597		-	~~(iii) an instructor.~~
	1615	+	division, the division shall certify a continuing education course that is required
1598	1616		786
1599		-	~~(b) In accordance with rules made by the commission in accordance with Title 63G,~~
	1617	+	under this chapter.
1600	1618		787
1601		-	Chapter ~~3, Utah Administrative Rulemaking Act, subject to concurrence~~ by the
	1619	+	(4) Except as provided under this chapter or by rule the commission makes in accordance
1602	1620		788
1603		-	~~division~~, ~~the division shall certify~~ a ~~continuing education course that is required~~
	1621	+	with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, a principal broker may
1604	1622		789
1605		-	~~under this chapter~~.
	1623	+	not be responsible for more than one registered entity at the same time.
1606	1624		790
1607		-	(4) ~~Except as provided under this chapter or by rule the commission makes in accordance~~
	1625	+	(5) A principal broker:
1608	1626		791
1609		-	~~with Title 63G,~~ ~~Chapter 3,~~ ~~Utah Administrative Rulemaking Act, a~~ principal broker ~~may~~
	1627	+	(a) shall exercise active and reasonable supervision of the principal broker's main office
1610	1628		792
1611		-	~~not be responsible for more than one registered entity at~~ the ~~same time.~~
	1629	+	in accordance with this chapter and rules the commission makes in accordance with
1612	1630		793
1613		-	~~(5) A principal broker:~~
	1631	+	Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
1614	1632		794
1615		-	(a) ~~shall exercise active and reasonable supervision of~~ the principal broker~~'s main office~~
	1633	+	(b) may supervise a branch office affiliated with the principal broker at the same time
1616	1634		795
1617		-	~~in accordance with this chapter and rules~~ the ~~commission makes in accordance with~~
	1635	+	the principal broker exercises the supervision required under Subsection (5)(a).
1618	1636		796
1619		-	~~Title 63G,~~ ~~Chapter 3,~~ ~~Utah Administrative Rulemaking Act;~~ ~~and~~
	1637	+	(6)(a) A principal broker may designate a branch broker to supervise a branch office
1620	1638		797
1621		-	~~(b) may supervise a branch office~~ affiliated with the principal broker ~~at the same time~~
	1639	+	affiliated with the principal broker.
1622	1640		798
1623		-	~~the principal~~ broker ~~exercises the~~ supervision ~~required under Subsection (5)(a).~~
	1641	+	(b) A branch broker shall exercise active and reasonable supervision, in accordance with
1624	1642		799
1625		-	~~(6)(a) A principal broker may designate a branch broker to supervise a branch office~~
	1643	+	this chapter and rules the commission makes in accordance with Title 63G, Chapter
1626	1644		800
1627		-	~~affiliated with~~ the principal broker.
	1645	+	3, Utah Administrative Rulemaking Act, of each branch office the principal broker
1628	1646		801
1629		-	~~(b) A~~ branch broker ~~shall exercise active and reasonable supervision, in accordance with~~
	1647	+	designates the branch broker to supervise.
1630	1648		802
1631		-	this chapter and rules the commission makes in accordance with Title 63G, Chapter
	1649	+	[(7)(a) In addition to issuing a principal broker license, associate broker license, or sales
	1650	+	- 24 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
1632	1651		803
1633		-	~~3, Utah Administrative Rulemaking Act,~~ of ~~each branch office~~ the ~~principal broker~~
	1652	+	agent license authorizing the performance of an act set forth in Section 61-2f-201, the
1634	1653		804
1635		-	~~designates the branch broker to supervise.~~
	1654	+	division may issue a specialized sales license or specialized property management
1636	1655		805
1637		-	~~[(7)(a) In addition~~ to ~~issuing a principal broker license, associate broker license, or sales~~
	1656	+	license with the scope of practice limited to the specialty.]
1638	1657		806
1639		-	~~agent~~ license ~~authorizing the performance of an act set forth~~ in ~~Section 61-2f-201, the~~
	1658	+	[(b) An individual may hold a specialized license in addition to a license as a principal
1640	1659		807
1641		-	~~division may issue~~ a ~~specialized~~ sales ~~license or specialized property management~~
	1660	+	broker, associate broker, or a sales agent.]
1642	1661		808
1643		-	~~license~~ with ~~the scope of practice limited to the specialty.]~~
	1662	+	[(c) A sales agent who is affiliated with a dual broker may act as a property management
1644	1663		809
1645		-	[(b) An individual may hold a specialized license in addition to a license as a principal
1646		-	- 24 - Enrolled Copy H.B. 337
	1664	+	sales agent if:]
1647	1665		810
1648		-	~~broker, associate~~ broker~~, or a~~ sales agent.]
	1666	+	[(i) the dual broker designates the sales agent as a property management sales agent;
1649	1667		811
1650		-	~~[(c) A sales agent who is affiliated with a dual broker may act as a property management~~
	1668	+	and]
1651	1669		812
1652		-	sales agent ~~if:]~~
	1670	+	[(ii) the sales agent pays to the division a property management sales agent
1653	1671		813
1654		-	~~[(i)~~ the ~~dual broker designates the sales agent as a property management sales agent;~~
	1672	+	designation fee in an amount determined by the division in accordance with
1655	1673		814
1656		-	~~and~~]
	1674	+	Section 63J-1-504.]
1657	1675		815
1658		-	[(ii) ~~the sales agent pays to the division~~ a property management sales agent
	1676	+	[(d) A property management sales agent may simultaneously provide both property
1659	1677		816
1660		-	~~designation fee in an amount determined by~~ the ~~division in accordance with~~
	1678	+	management services and real estate sales services under the supervision of a dual
1661	1679		817
1662		-	~~Section 63J-1-504.]~~
	1680	+	broker as provided by the commission with the concurrence of the division by rule
1663	1681		818
1664		-	~~[(d) A property management sales agent may simultaneously provide both property~~
	1682	+	made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.]
1665	1683		819
1666		-	~~management services and real estate sales services under~~ the ~~supervision of a dual~~
	1684	+	[(8) The commission may determine, by rule made in accordance with Title 63G, Chapter
1667	1685		820
1668		-	~~broker as provided~~ by the ~~commission with the concurrence of the~~ division ~~by rule~~
	1686	+	3, Utah Administrative Rulemaking Act, subject to concurrence by the division,
1669	1687		821
1670		-	~~made in accordance with Title 63G~~, ~~Chapter 3~~, ~~Utah Administrative Rulemaking Act.]~~
	1688	+	licensing requirements related to this section for a principal broker, associate broker,
1671	1689		822
1672		-	~~[(8) The commission may determine~~, ~~by rule made in accordance with Title 63G~~, ~~Chapter~~
	1690	+	sales agent, dual broker, property management sales agent, or for a specialized license
1673	1691		823
1674		-	3, ~~Utah Administrative Rulemaking Act, subject to concurrence by the division,~~
	1692	+	described in Subsection (7), including:]
1675	1693		824
1676		-	~~licensing~~ requirements ~~related to this section for a principal broker, associate broker,~~
	1694	+	[(a) prelicensing and postlicensing education requirements;]
1677	1695		825
1678		-	~~sales agent,~~ ~~dual broker, property management sales agent, or for a specialized license~~
	1696	+	[(b) examination requirements;]
1679	1697		826
1680		-	~~described in Subsection (7), including:~~]
	1698	+	[(c) affiliation with real estate brokerages or property management companies;]
1681	1699		827
1682		-	[(a) ~~prelicensing and postlicensing education requirements;~~]
	1700	+	[(d) property management sales agent:]
1683	1701		828
1684		-	[(b) ~~examination requirements~~;]
	1702	+	[(i) designation procedures;]
1685	1703		829
1686		-	[(c) ~~affiliation with real estate brokerages or property management companies;~~]
	1704	+	[(ii) allowable scope of practice; and]
1687	1705		830
1688		-	[(d) ~~property management sales agent:~~]
	1706	+	[(iii) division fees;]
1689	1707		831
1690		-	[(i) ~~designation procedures;~~]
	1708	+	[(e) what constitutes active and reasonable supervision for:]
1691	1709		832
1692		-	[(ii) ~~allowable scope of practice~~; and]
	1710	+	[(i) a principal broker when supervising a branch broker or sales agent; and]
1693	1711		833
1694		-	[(~~iii~~) ~~division fees~~;]
	1712	+	[(ii) a branch broker when supervising a sales agent; and]
1695	1713		834
1696		-	[(e) ~~what constitutes active and reasonable supervision for:~~]
	1714	+	[(f) other licensing procedures.]
1697	1715		835
1698		-	~~[(i) a principal broker when supervising a branch broker or sales agent; and]~~
	1716	+	Section 9. Section 61-2f-307 is enacted to read:
1699	1717		836
1700		-	[(ii) a branch broker when supervising a sales agent; and]
	1718	+	61-2f-307 . Rights and privileges of a property manager to fill out a form or
	1719	+	- 25 - 2nd Sub. (Gray) H.B. 337 02-27 15:35
1701	1720		837
1702		-	~~[(f) other licensing procedures~~.]
	1721	+	document.
1703	1722		838
1704		-	~~Section 9. Section 61-2f-307 is enacted to read:~~
	1723	+	A property manager may fill out any form, contract, or lease agreement associated with
1705	1724		839
1706		-	~~61-2f-307 . Rights~~ and ~~privileges~~ of a property ~~manager to fill out a form or~~
	1725	+	the renting and management of real property.
1707	1726		840
1708		-	~~document~~.
	1727	+	Section 10. Section 61-2f-411 is enacted to read:
1709	1728		841
1710		-	A property manager ~~may fill out any form, contract, or lease agreement associated with~~
	1729	+	61-2f-411 . Enforcement related to a property manager.
1711	1730		842
1712		-	~~the renting and management of real property.~~
	1731	+	(1) Nothing in this section applies to an individual:
1713	1732		843
1714		-	Section 10. Section 61-2f-411 is enacted to read:
1715		-	- 25 - H.B. 337 Enrolled Copy
	1733	+	(a) buying, selling, or exchanging real estate for another person; or
1716	1734		844
1717		-	~~61-2f-411 . Enforcement related~~ to ~~a property manager~~.
	1735	+	(b) offering to buy, sell, or exchange real estate for another person.
1718	1736		845
1719		-	(1) ~~Nothing~~ in ~~this section applies to an individual~~:
	1737	+	(2) When engaging in property management, a property manager may:
1720	1738		846
1721		-	(a) ~~buying, selling, or exchanging real estate~~ for ~~another person~~; or
	1739	+	(a) solicit referrals for clients, owners, customers, and renters;
1722	1740		847
1723		-	(b) ~~offering to buy,~~ ~~sell,~~ or exchange ~~real estate~~ for ~~another person.~~
	1741	+	(b) pay a finder's fee or exchange valuable consideration to an unlicensed person for
1724	1742		848
1725		-	~~(2) When engaging in property management,~~ a ~~property manager may:~~
	1743	+	referring a prospective client;
1726	1744		849
1727		-	(a) ~~solicit referrals for clients~~, ~~owners, customers,~~ ~~and renters~~;
	1745	+	(c) accept a referral fee from an individual, whether licensed or unlicensed;
1728	1746		850
1729		-	(b) pay ~~a finder's fee or exchange valuable consideration to~~ an ~~unlicensed person for~~
	1747	+	(d) contract for services, pay bills, and act on behalf of an owner as provided in a
1730	1748		851
1731		-	~~referring a prospective client;~~
	1749	+	management agreement; and
1732	1750		852
1733		-	(c) ~~accept a referral fee from an individual, whether licensed~~ or ~~unlicensed;~~
	1751	+	(e) advertise properties for rent or lease.
1734	1752		853
1735		-	(d) ~~contract for services, pay bills, and act on behalf of an owner~~ as provided in a
	1753	+	(3) Except as provided in Subsection (4), a property manager shall associate with at least
1736	1754		854
1737		-	~~management agreement;~~ ~~and~~
	1755	+	one real estate trust account in a bank or credit union:
1738	1756		855
1739		-	(e) ~~advertise properties for rent or lease.~~
	1757	+	(a) located within the state;
1740	1758		856
1741		-	(3) ~~Except as provided in Subsection (4),~~ a property ~~manager shall associate with at least~~
	1759	+	(b) that, unless otherwise modified by a contract for property management, one or more
1742	1760		857
1743		-	~~one real estate trust account in a bank or credit union~~:
	1761	+	property managers use for the purpose of securing:
1744	1762		858
1745		-	(a) ~~located within the state~~;
	1763	+	(i) tenant security deposits;
1746	1764		859
1747		-	(b) ~~that, unless otherwise modified by a contract for property management, one or more~~
	1765	+	(ii) rent;
1748	1766		860
1749		-	property ~~managers use~~ for ~~the purpose~~ of ~~securing:~~
	1767	+	(iii) money tendered by a property owner as a reserve fund or for payment of an
1750	1768		861
1751		-	~~(i) tenant security deposits;~~
	1769	+	unexpected expense; and
1752	1770		862
1753		-	(ii) ~~rent~~;
	1771	+	(iv) any other purpose designated by the commission; and
1754	1772		863
1755		-	(~~iii~~) ~~money tendered by~~ a property ~~owner as a reserve fund or for payment of an~~
	1773	+	(c) that is non-interest bearing, unless the parties to a property management contract:
1756	1774		864
1757		-	~~unexpected expense~~; ~~and~~
	1775	+	(i) agree in writing to deposit the funds in an interest-bearing account;
1758	1776		865
1759		-	(iv) ~~any other purpose designated by~~ the ~~commission; and~~
	1777	+	(ii) designate in writing the individuals to whom the parties will pay the interest on
1760	1778		866
1761		-	~~(c) that is non-interest bearing, unless~~ the ~~parties to a~~ property management contract:
	1779	+	completion or failure of the property management contract; and
1762	1780		867
1763		-	(i) ~~agree in writing to deposit~~ the ~~funds in an interest-bearing~~ account;
	1781	+	(iii) ensure that the parties and trust account comply with any other rules established
1764	1782		868
1765		-	~~(ii) designate in writing~~ the ~~individuals to whom the parties will pay the interest on~~
	1783	+	by the commission or division.
1766	1784		869
1767		-	~~completion or failure of the~~ property ~~management contract;~~ and
	1785	+	(4) A property manager who obtains and holds a security bond that protects at least 30% of
1768	1786		870
1769		-	(iii) ensure that the parties and trust account comply with any other rules established
	1787	+	the estimated client funds the property manager holds in the property manager's bank
	1788	+	- 26 - 02-27 15:35 2nd Sub. (Gray) H.B. 337
1770	1789		871
1771		-	~~by the commission or division~~.
	1790	+	accounts is not required to be associated with a trust account.
1772	1791		872
1773		-	~~(4) A property manager who obtains and holds a security bond that protects at least 30% of~~
	1792	+	Section 11. Effective Date.
1774	1793		873
1775		-	the estimated client funds the property manager holds in the property manager's bank
1776		-	874
1777		-	accounts is not required to be associated with a trust account.
1778		-	875
1779		-	Section 11. Effective Date.
1780		-	876
1781	1794		This bill takes effect on January 1, 2026.
1782		-	- 26 -
	1795	+	- 27 -