No. 30162 (Amendment): R162-3-5. Activation

DAR File No.: 30162
Filed: 07/02/2007, 10:28
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

It is necessary to amend Subsection R162-3-5(3.5.1) to correspond with changes made to Subsection R162-3-5(3.50 on 11/16/2006 and a recent amendment to the continuing education rules in Rule R162-9 (DAR No. 29718, published in the April 15, 2007, issue of the Bulletin, and effective 05/30/2007).

Summary of the rule or change:

Subsection R162-3-5(3.5.1) is liberalized to provide that only half of the hours of education required to activate a license must be in certain specified subjects, instead of all of the hours. The balance of the hours may be in "elective" course subjects.

State statutory or constitutional authorization for this rule:

Subsection 61-2-5.5(1)(a)

Anticipated cost or savings to:

the state budget:

None--Which continuing education topics are specified for the education required to activate a real estate license have no effect on the state budget.

local governments:

None--Local governments are neither real estate licensees nor providers of continuing education for real estate licensees. Therefore, which continuing education topics are specified as the education required to activate a real estate license has no effect on local government.

other persons:

The providers of real estate continuing education courses in Utah are likely to be small businesses. It is possible that this rule change could cause the demand for some courses to be greater or less than the current demand for those courses. A change in demand for any specific course offering could either save or cost the education provider money, depending on the specific impact of the change in demand for a course. However, any impact that there may be on the providers of continuing education because of the liberalization of the courses that will count toward license activation was caused by the 11/16/2006 amendment to Subsection R162-3-5(3.5) and by the recent change to Rule R162-9, and not by this rule change harmonizing Subsection R162-3-5(3.5.1) with those provisions.

Compliance costs for affected persons:

The only persons who could be affected by this rule change are providers of continuing education and any licensees who need to take education in order to activate their licenses. It is more likely that the liberalization of the rule by allowing "elective" course topics to count toward activation would benefit both the students and the course providers instead of costing them money. However, if there was any adverse economic impact on these persons because more "elective" courses are allowed, that cost would be attributable to the 11/16/2006, change to Subsection R162-3-5(3.5) and the recent change to Rule R162-9.

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

This rule filing amends the license activation provision to become consistent with the continuing education provisions. No fiscal impact to businesses is anticipated. 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
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Shelley Wismer at the above address, by phone at 801-366-0145, by FAX at 801-366-0315, 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:

08/14/2007

This rule may become effective on:

08/22/2007

Authorized by:

Derek Miller, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-3. License Status Change.

R162-3-5. Activation.

3.5. All 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 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 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 hours of continuing education required to activate a license shall be made up of at least 6 hours of "core" courses in subjects specified in Subsection R162-9.2.1. The balance of the 12 hours of continuing education may be "elective" courses in the subjects listed in Subsection R162-9.2.2.[Courses that have been approved by the Division for continuing education purposes in the following topics will be acceptable toward the continuing education required for activation: agency, contract law, the Real Estate Purchase Contract and other state-approved forms, ethics, Utah law, and closing/settlement.]

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.

 

KEY: real estate business

Date of Enactment or Last Substantive Amendment: [May 30, ]2007

Notice of Continuation: April 18, 2007

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