No. 33565 (Amendment): Rule R162-3. License Status Change

(Amendment)

DAR File No.: 33565
Filed: 04/22/2010 08:14:27 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This amendment updates the requirements for activating and reinstating a license to reflect legislative changes made to Subsection 61-2-9(2).

Summary of the rule or change:

The total number of continuing education hours required for activation is changed from 12 to 18. Nine of these hours must be completed in core courses. The total number of continuing education hours required for reinstatement of a license that has been expired for up to 6 months is changed from 12 to 18. A license that has been expired more than 6 months but less than a year may be reinstated by the applicant's paying certain fees and completing an additional 24 hours of continuing education.

State statutory or constitutional authorization for this rule:

• Subsection 61-2-5.5(1)(a)

Anticipated cost or savings to:

the state budget:

The state budget necessary for processing license activations and renewals is in place. No impact to the state budget is anticipated.

local governments:

Local governments do not license with the division. Nor do they oversee licensing on a local level. These amendments will have no effect on local governments.

small businesses:

Small businesses that choose to cover the costs of continuing education for a licensee's activation or reinstatement will have to pay for an additional six credit hours. These costs were considered by the Legislature in passing H.B. 86 (2009 General Session), which increased the total number of hours required. (DAR NOTE: H.B. 86 (2009) is found at Chapter 352, Laws of Utah 2009, and was effective 05/12/2009.)

persons other than small businesses, businesses, or local governmental entities:

Affected persons completing continuing education in order to activate or reinstate a license will have to pay for an additional six credit hours. These costs were considered by the legislature in passing H.B. 86, which increased the total number of hours required.

Compliance costs for affected persons:

To comply, affected persons will complete and pay for an additional six hours of continuing education. The costs to comply will vary depending on which continuing education courses an individual chooses to complete. These costs were considered by the Legislature in passing H.B. 86 (2009 General Session).

Comments by the department head on the fiscal impact the rule may have on businesses:

This filing updates the rule to meet recent statutory amendments that increased the continuing education hours required for renewal and reinstatement of licenses. No fiscal impact to businesses is anticipated beyond that addressed when the statutory amendments were made.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Real Estate
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/14/2010

This rule may become effective on:

06/21/2010

Authorized by:

Deanna Sabey, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-3. License Status Change.

R162-3-1. Status Changes.

3.1. A licensee must notify the Division within ten working days of any status change. Status changes are effective on the date the properly executed forms and appropriate non-refundable fees are received by the Division. Notice must be on the forms required by the Division.

3.1.1. Change of name requires submission of official documentation such as a marriage or divorce certificate, or driver's license.

3.1.2. Change of business, home address or mailing address requires written notification. A post office box without a street address is unacceptable as a business or home address. The licensee may designate any address to be used as a mailing address.

3.1.3. Change of name of a brokerage must be accompanied by evidence that the new name has been approved by the Division of Corporations, Department of Commerce.

3.1.4. Change of Principal Broker of a real estate brokerage which is a sole proprietorship, requires closure of the registered entity. The new principal broker shall activate the Registered Company and provide proof from the Division of Corporations of the authorization to use the DBA. Change cards will be required for the terminating Principal Broker, new Principal Broker and all licensees affiliated with the brokerage.

3.1.5. Change of a Principal Broker within an entity which is not a sole proprietorship requires written notice from the entity signed by both the terminating Principal Broker and the new Principal Broker.

 

R162-3-2. Unavailability of Licensee.

3.2. If a licensee is not available to properly execute the form required for a status change, the status change may still be made provided a letter advising of the change is mailed by certified mail to the last known address of the unavailable licensee. A verified copy of the letter and proof of mailing by certified mail must be attached to the form when it is submitted to the Division.

 

R162-3-3. Transfers.

3.3. Prior to transferring from one principal broker to another principal broker, the licensee must mail or deliver to the Division written notice of the change on the form required by the Division.

 

R162-3-4. Inactivation.

3.4. To voluntarily inactivate a license, the licensee must deliver or mail to the Division a written request for the change signed by both the licensee and principal broker.

3.4.1. Prior to placing a principal broker license on an inactive status, a principal broker must provide written notice to each licensee affiliated with the principal broker of that licensing status change. Evidence of that written notice must be provided to the Division in order to process the status change. The inactivation of the license of a principal broker will also cause the licenses of all affiliated licensees to be immediately inactivated if they do not transfer their licenses in accordance with R162-3.3 prior to the effective date of the principal broker's status change.

3.4.2. The non-renewal, suspension, or revocation of the license of a principal broker will cause the licenses of [all] affiliated licensees to be immediately inactivated if they do not transfer their licenses in accordance with R162-3.3 prior to the effective date of the principal broker's status change.

3.4.2.1. When a principal broker is notified that the principal broker's license will be suspended or revoked, the principal broker must, prior to the effective date of the suspension or revocation, provide written notice to each licensee affiliated with the principal broker of that status change. In addition, the Division shall send written notice to each sales agent, associate broker, or branch broker of the effective date of inactivation and the process for transfer.

3.4.3. The principal broker may involuntarily inactivate the license of the sales agent or associate broker by complying with R162-3.2.

 

R162-3-5. Activation.

3.5. [All licensees]Licensees changing to active status must submit to the Division the applicable non-refundable activation fee, a request for activation in the form required by the Division, and, if the license was on inactive status at the time of last license renewal, proof of completion of the examination within six months prior to applying to activate or proof of completion of the [12]18 hours of continuing education that the licensee would have been required to complete in order to renew on active status. If a licensee last renewed on inactive status and applies to activate the license at the time of license renewal, the licensee shall be required to complete the [12]18 hours of continuing education required to renew but shall not be required to complete additional continuing education in order to activate the license.

3.5.1 Continuing Education for Activation. The [12]18 hours of continuing education required to activate a license shall be made up of at least [6]9 hours of "core" courses in subjects specified in Subsection R162-9.2.1. The balance of the [12]18 hours of continuing education may be "elective" courses in the subjects listed in Subsection R162-9.2.2.

3.5.1.1 To qualify as continuing education for activation, all courses submitted must have been completed within one year before activation.

3.5.1.2 Continuing education that was submitted to activate a license may not be used again toward the continuing education required on the licensee's next renewal.

 

R162-3-6. Renewal and Reinstatement.

3.6.1 Licenses are valid for a period of two years. A license may be renewed by submitting all forms and fees required by the Division prior to the expiration date of the current license. Licenses not properly renewed shall expire on the expiration date.

3.6.1.1 Reinstatement

(a) A license may be reinstated within thirty days after expiration by complying with all requirements for a timely renewal and paying a non-refundable late fee.

[3.6.1.2](b) A license may be reinstated after thirty days and within six months after expiration by complying with all requirements for a timely renewal, paying a non-refundable reinstatement fee and submitting proof of having completed 12 hours of continuing education in addition to the [12]18 hours of continuing education required to renew a license on active status.

(c) A license may be reinstated after the six-month period described in Subsection (b) and until one year after expiration by complying with all requirements for a timely renewal, paying a non-refundable reinstatement fee, and submitting proof of having completed 24 hours of continuing education in addition to the 18 hours of continuing education required to renew a license on active status.

[3.6.1.3](d) A license that has been expired for more than [six months]one year may not be reinstated and an applicant must apply for a new license following the same procedure as an original license.

3.6.2 Renewal Requirements.

3.6.2.1 Continuing Education. [To renew a license on active status before January 1, 2010, an applicant must submit to the division proof of having completed, during the previous license period and by the 15th day of the month of expiration, 12 non-duplicative hours of continuing education from courses certified by the division.] To renew a license on active status[ after January 1, 2010], an applicant must submit to the division proof of having completed, during the previous license period and by the 15th day of the month of expiration, 18 non-duplicative hours of continuing education from courses certified by the division.

[3.6.2.1.1](a) During the first license period, a licensee must take the 12-hour "New Sales Agent Course" certified by the division. [Licensees in their first license period who renew their licenses before January 1, 2010 will satisfy their continuing education requirement ("core" and "elective") by taking the 12-hour "New Sales Agent Course." ]Licensees in their first license period [who renew their licenses after January 1, 2010] will need to complete 6 additional non-duplicative hours of continuing education (either "core" or "elective") as defined in R162.9.2.1 - 9.2.10.

[3.6.2.1.2](b) [During subsequent license periods before January 1, 2010 a licensee must take at least 6 hours of non-duplicative continuing education from courses certified by the division as "core" as defined in Rule R162.9.2.1. A licensee must take any remaining hours of continuing education from courses certified by the division as "elective" as defined in Rules R162.9.2.2 - 9.2.2.10.] During subsequent license periods[ after January 1, 2010], a licensee must take at least 9 hours of non-duplicative continuing education from courses certified by the division as "core" as defined in R162.9.2.1. A licensee must take any remaining hours of continuing education from courses certified by the division as "elective" as defined in R162.9.2.2 - 9.2.2.10.

[3.6.2.1.2.1](c) The division may grant continuing education credit for non-certified courses submitted by a renewal applicant in the form required by the division, if the course was not required by these rules to be certified and the division determines that the course meets the continuing education objectives listed in Rule R162.9.2.

[3.6.2.1.3](d) Licensees must retain original course completion certificates for three years following renewal and produce those certificates when audited by the division.

3.6.2.2 Principal Broker. To renew a principal broker license on active status an applicant must certify that the business name under which the licensee is operating is current and in good standing with the Division of Corporations and that all real estate trust accounts are current and in compliance with Rule R162-4.2.

3.6.2.3 Any misrepresentation in an application for renewal [will be considered]is a separate violation of these rules and separate grounds for disciplinary action against the licensee.

 

KEY: real estate business

Date of Enactment or Last Substantive Amendment: [December 8, 2009] 2010

Notice of Continuation: April 18, 2007

Authorizing, and Implemented or Interpreted Law: 61-2-5.5

 

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