No. 27158 (Amendment): R657-27. License Agent Procedures

DAR File No.: 27158
Filed: 05/14/2004, 02:45
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed amendment adds provisions requiring license agents for the Division of Wildlife Resources (DWR) to become online license agents by December 1, 2005; and provides provisions for DWR to assist new and existing license agents in becoming online license agents.

 

Summary of the rule or change:

Section R657-27-2 is being amended to add the definition of "computer hardware," which may be provided by DWR to license agents when becoming online license agents. Section R657-27-3 is being amended to add that license agents for DWR must become online license agents by December 1, 2005. Section R657-27-4 is being amended to clarify the requirements for becoming a license agent for DWR and provide provisions for DWR to assist new and existing license agents in becoming online license agents. Subsection R657-27-6(1)(g) is being added to require license agents to retain agent copies of sold licenses and permits for 12 months following the month of sale. Other changes are made for consistency and clarity.

 

State statutory or constitutional authorization for this rule:

Section 23-19-15

 

Anticipated cost or savings to:

the state budget:

This amendment requires that all license agents sell licenses and permits through DWR's online sales system by December 1, 2005. The short term fiscal impact will be neutral because the division will be required to purchase approximately 400 printers for a for a cost of about $142,000 to provide to agents, but will save about $140,000 in data input costs that have previously been incurred. In approximately 18 months, the division will realize an ongoing annual savings of about $140,000.

 

local governments:

None--This filing does not create any direct cost or savings impact to local governments because they are not directly affected by the rule. Nor are local governments indirectly impacted because the rule does not create a situation requiring services from local governments.

 

other persons:

The license agents that sell hunting and fishing licenses may have an initial financial impact of about $700 per site or $175,000 total for the 250 agents that have not already converted to this system without the requirements of this rule. There may also be ongoing costs of $15 to $100 per month for data connections for these agents. These amounts are based on an assumption that none of these retail stores have a computer or Internet connection. If these are in place the fiscal impact is reduced. There should be ongoing savings to the agents on the system since reporting time is reduced and documents can be processed more quickly. The fiscal savings cannot be easily determined. The agents may also increase revenue as they are permitted to sell more types of documents and thereby increase their agent commissions.

 

Compliance costs for affected persons:

The license agents that sell hunting and fishing licenses may have an initial financial impact of about $700 per site or $175,000 total for the 250 agents that have not already converted to this system without the requirements of this rule. There may also be ongoing costs of $15 to $100 per month for data connections for these agents. These amounts are based on an assumption that none of these retail stores have a computer or Internet connection. If these are in place the fiscal impact is reduced. There should be ongoing savings to the agents on the system since reporting time is reduced and documents can be processed more quickly. The fiscal savings cannot be easily determined. The agents may also increase revenue as they are permitted to sell more types of documents and thereby increase their agent commissions.

 

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

This rule was prepared after consultation with the License Agent Advisory Committee that is represented by license agents from around the state. Further it was presented to Regional Advisory Councils and the Utah Wildlife Board. Comments were incorporated to minimize financial impacts to agents. DWR believes this change represents a positive opportunity for the majority of our sales agents.

 

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

Natural Resources
Wildlife Resources
1594 W NORTH TEMPLE
SALT LAKE CITY UT 84116-3154

 

Direct questions regarding this rule to:

Debbie Sundell at the above address, by phone at 801-538-4707, by FAX at 801-538-4745, 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:

07/01/2004

 

This rule may become effective on:

07/02/2004

 

Authorized by:

Kevin Conway, Director

 

 

RULE TEXT

R657. Natural Resources, Wildlife Resources.

R657-27. License Agent Procedures.

R657-27-1. Purpose and Authority.

Under Section 23-19-15, this rule provides the application procedures, standards, and requirements for wildlife license agents.

 

R657-27-2. Definitions.

(1) Terms used in this rule are defined in Section 23-13-2.

(2) In addition:

(a) "Agent hunting and fishing licenses online" means the web application that allows an online license agent to print wildlife documents on license paper.

(b) "Bond" means a surety bond to remain in full force and effect continuously and indefinitely, until canceled.

(c) "Computer hardware" means electronic equipment the division deems necessary to perform the minimum required functions of the division's online license sales application system that may include a central processing unit, cables, or router.

(d) "Deactivated license agent or deactivated" means a license agent that holds license agent status but is temporarily precluded from selling wildlife documents for failure to comply with this rule or any other laws or agreements regulating license agent activity.

[(d)](e) "License agent" means a person authorized by the division to sell wildlife documents.

[(e)](f) "License Agent Application" means a written request to be authorized by the division to sell wildlife documents.

[(f)](g) "License Agent Authorization" means an agreement between the division and a license agent, allowing a license agent to sell wildlife documents.

[(g)](h) "License paper" means designated paper issued by the division for the sole purpose of printing specified licenses or permits through the agent hunting and fishing licenses online sales system.

[(h)](i) "Location" means the building or structure from which a license agent is authorized to sell wildlife documents.

[(i)](j) "Online license agent" means a person authorized by the division to sell wildlife documents through the agent hunting and fishing licenses online sales system.

[(j)](k) "Presiding officer" means the hearing officer designated by the director of the division.

[(k)](l) "Remuneration" means money that a license agent receives for each wildlife document sold as provided in Section 23-19-15.

[(l)](m) "Wildlife documents" means licenses, permits and tags preprinted by the division or printed by the online license agent on license paper.

 

R657-27-3. License Agent Application.

(1) License agent applications may be obtained from the Licensing Section in the Salt Lake Office or downloaded from the division's website.

(2) License agent applications shall be considered from any person located within Utah or in close proximity to Utah.

(3) Applications shall be processed within 30 days.

(4) The applicant must:

(a) complete and return the application to the Licensing Section in the Salt Lake Office; and

(b) pay a non refundable application fee.

(5) A separate application and application fee must be submitted for each location where wildlife documents will be sold.

(6)(a) All new license agent applicants, and existing license agents must become online license agents by December 1, 2005.

(b) The division may provide assistance to new and existing license agents in becoming online license agents as provided in Subsection R657-27-4(1)(b),(1)(c) or (1)(d).

 

R657-27-4. License Agent Eligibility - Reasons for Application Denial - Term of Authorization.

(1) [The division may deny a license agent application for any of the following reasons:

(a) A sufficient number of license agents already exist in the area;

(b) The applicant does not have adequate security including a safe or locking cabinet in which to store wildlife documents or license paper;

(c) The applicant has previously been authorized to sell wildlife documents or possess license paper and the applicant:

(i) failed to comply with the license agent authorization or any provision of statute or rule governing license agents; or

(ii) was deactivated or revoked by the division as a license agent;

(d) The applicant provided false information on the license agent application;

(e) The applicant has been convicted of a wildlife related violation; or

(f) The applicant has been convicted, pleaded guilty, pleaded no contest, or entered into a plea in abeyance to a criminal offense that bears a reasonable relationship to the license agent's ability to competently and responsibly perform the functions of a license agent.

(2)]A new license agent must meet the criteria provided in Subsection (a), except as provided in Subsection (b) or (c).

(a) A license agent must:

(i) successfully complete a division-sponsored training session;

(ii) provide and maintain approved computer hardware capable of processing and printing licenses and permits in a permanent, clear, and a legible manner; and

(iii) sign a supplemental wildlife documents sales agreement as provided in Section R657-27-16.

(b) The division may provide a printer as required in Subsection (a)(ii) provided the license agent's projected sales is estimated to be at least one-thousand dollars per year.

(c) The division may provide assistance up to one-thousand dollars for computer hardware required in Subsection (a)(ii) provided:

(i) there is not a current, eligible license agent within 45 miles of the proposed license agent location; and

(ii) the estimated sales revenue from the proposed location will recover the cost of the computer hardware within six months of providing the computer hardware.

(d) The division may provide assistance for a data line connection and the associated ongoing expense of the data line connection provided:

(i) there is not a current, eligible license agent within 45 miles of the proposed license agent location; and

(ii) the division anticipates the monthly cost for the data line connection to be less than 20% of the estimated monthly collection from the license agent.

(e) The division shall annually review the ongoing expenses for a data line connection to ensure the license agent is eligible for the assistance allowed in Subsection (d).

(f) A license agent must remain a license agent for the division for at least six months to retain the computer hardware or printer as provided in Subsections (b) or (c).

(2) Use of the agent hunting and fishing licenses online system must be used in compliance with the users manual provided by the division.

(3) The division shall send the applicant a written notice stating the reason for denial.

[(3)](4) If the division approves the license agent application, a license agent authorization shall be sent to the applicant.

[(4)](5) The license agent authorization is not effective until:

(a) it is signed and notarized by the applicant; and

(b) signed by the director.

[(5)(a)](6)(a) The license agent authorization must be received by the Licensing Section in the Salt Lake Office within 30 days of being mailed to the applicant.

(b) A separate application, application fee, and license agent authorization is required for each location where wildlife documents will be sold.

[(6)](7) Each license agent authorization shall be established for a term of five years.

(8) The division may deny a license agent application for any of the following reasons:

(a) A sufficient number of license agents already exist in the area;

(b) The applicant does not have adequate security including a safe or locking cabinet in which to store wildlife documents or license paper;

(c) The applicant has previously been authorized to sell wildlife documents or possess license paper and the applicant:

(i) failed to comply with the license agent authorization or any provision of statute or rule governing license agents; or

(ii) was deactivated or revoked by the division as a license agent;

(d) The applicant provided false information on the license agent application;

(e) The applicant has been convicted of a wildlife related violation; or

(f) The applicant has been convicted, pleaded guilty, pleaded no contest, or entered into a plea in abeyance to a criminal offense that bears a reasonable relationship to the license agent's ability to competently and responsibly perform the functions of a license agent.

 

R657-27-6. License Agent Obligations.

(1) Each license agent must:

(a) comply with the requirement and provisions provided in Section 23-19-15;

(b) keep wildlife documents or license paper secure and out of the public view during business hours;

(c) keep wildlife documents or license paper in a safe or locked cabinet after business hours;

(d) display all signs and distribute proclamations provided by the division;

(e) have all sales clerks and management staff available for sales training;[ and]

(f) maintain a License Agent Manual provided by the division and make it available to the license agent's staff, including supplemental manuals and addendums; and

(g) retain agent copies of licenses and permits for 12 months following the month of sale, at which time agent copies of licenses and permits must be destroyed by burning, shredding or submitting to the division.[.]

(2) If a license agent becomes delinquent on reporting or remission of proceeds Subsection (2)(a), (2)(b) or (2)(c) shall apply.

(a) The license agent must immediately submit all reports when due along with the remission of required proceeds.

(b) If the license sales report is submitted in accordance with Subsection (1)(a) but funds are not submitted with the report then the following applies:

(i) A repayment plan may be structured in an agreement that will allow repayment in equal monthly installments for up to six months at a payment level that will provide repayment of the principal along with an annual percentage interest rate (APR) of 12%. This APR shall be calculated back to the date that the payment should have been received in accordance with Subsection (1)(a);

(ii) If the ongoing monthly report and proceed submissions are not received for the future months, from the month of the agreement in accordance with Subsection (1)(a), then any agreement made in Subsection (2)(b)(i) may be terminated and all outstanding balances and accrued interest shall become due immediately, along with a penalty of 20% of the unpaid balance. Interest shall continue to accumulate on any unpaid balance, including the penalty, at the APR;

(iii) Activate the bond and collect all remaining funds in accordance with Section R657-27-5 and hold any remaining unpaid balances of penalty, ongoing interest, and principle amounts as a receivable from the license agent; or

(iv) If the license agent enters into an agreement with the division as provided in Subsection (2)(b)(i), and then violates the terms of that agreement, the division may begin the revocation process in accordance with Section R657-27-11.

(c) Nothing in this rule shall be construed as requiring the division to offer a repayment agreement to a license agent delinquent on report submissions or proceeds remissions before taking action to revoke license agent status.

(d) If the license agent does not submit a monthly report as provided in Subsection (1)(a), or if the license agent does not immediately pay the delinquent funds or fails to execute and abide by the terms of a repayment agreement as provided in Subsection (2)(b), the division may:

(i) change the license agent's status to deactivated;

(ii) withhold issuing additional wildlife document inventory;

(iii) withhold access to the agent hunting and fishing licenses online sales system;

(iv) collect the license agent's inventory of wildlife documents and license paper, and determine unaccounted inventory of wildlife documents and license paper;

(v) assess a monetary penalty for each wildlife document and piece of license paper unaccounted for as provided in Subsection R657-27-7(2);

(vi) take action to revoke license agent status;

(vii) create a receivable from the license agent that equals the amount due as determined in Subsection (1)(a) and charge a 20% late penalty on the entire balance, and accumulate the unpaid balance, included penalties, at a 12% APR from the due date of the earliest date in which a license agent failed to submit a report in accordance with Subsection (1)(a); or

(viii) activate the bond and collect all available funds remaining in accordance with Section R657-27-5 and hold any remaining unpaid balances of penalty, ongoing interest, and principle amounts as a receivable from the license agent.

(e) A deactivated license agent that has not been revoked may regain active status by paying all due balances in full, and providing a bond, provided the license agent is otherwise in compliance with this rule or any other laws or agreements regulating license agent activity.

 

R657-27-16[. Online License Agent.

(1) To become an online license agent, a license agent must:

(a) successfully complete a division-sponsored training session;

(b) provide and maintain approved hardware capable of printing in a permanent, clear, and legible manner;

(c) sign a supplemental wildlife documents sales agreement; and

(d) place the user manual provided by the division with the license agent manual.

(2) Use of the agent hunting and fishing licenses online system must be in compliance with the users manual provided by the division.

 

R657-27-17]. Supplemental Wildlife Document Sales Agreement.

(1) Upon approval of a license agent authorization, the division may enter into a supplemental wildlife document sales agreement with the license agent.

(2)(a) The license agent must:

(i) complete all information indicated in the agreement; and

(ii) sign and date the agreement.

(b) The agreement must be returned by mail or hand-delivery to any division office and must be received no later than the date indicated under the terms on the agreement form. Facsimiles will not be accepted.

(c) Agreements received after the date indicated on the agreement form may be returned.

(4)(a) The division may not enter into an agreement with any license agent who was given reasonable notice of the time period for entering into the agreement and fails to return a complete agreement to the division.

(b) The division may notify a license agent who has made an error in completing the agreement form and may afford an opportunity for correction. However, if the division is unable to contact the license agent within two weeks following the filing date indicated on the agreement and correct the error, the agreement shall be void and the license agent may not receive authorization to sell the wildlife documents covered by the supplemental agreement.

(5) By signing the agreement, the license agent agrees to abide by the terms of the agreement.

 

R657-27-[18]17. License Agent Authorization and Supplemental Agreements Subject to Change.

(1) A license agent authorization or supplemental agreement issued or renewed by the division under this rule is a privilege and not a right. The license agent authorization or supplemental agreement authorizes the license agent to sell wildlife documents subject to all present and future conditions, restrictions, and regulations imposed on such activities by the division, the Wildlife Board, or the State of Utah.

(2) A license agent authorization or supplemental agreement does not guarantee or otherwise legally entitle the license agent to any of the following:

(a) a minimum number of wildlife documents;

(b) a particular type or types of wildlife documents;

(c) access to any particular wildlife document distribution system; or

(d) any other right or opportunity advantageous to the license agent.

(3) The procedures, processes and opportunities outlined in this rule regulating license agents and the distribution of wildlife documents are all subject to future change, including discontinuation, by the division and the Wildlife Board.

 

KEY: licensing, wildlife, wildlife law, rules and procedures

[July 2, 2003] 2004

Notice of Continuation April 10, 2002

23-19-15