DAR File No. 27945

Commerce, Real Estate

R162-208

Continuing Education

NOTICE OF PROPOSED RULE

DAR File No.: 27945
Filed: 06/01/2005, 08:33
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose for the rule change is to plug a loophole that arguably allows a continuing education provider who does not precertify a course before offering it to students for credit to give the course anyway and force the students to apply to the Division individually for approval of their continuing education credits.

Summary of the rule or change:

The rule requiring course providers to obtain certification of continuing education courses from the Division before offering the courses to students for continuing education credit is tightened, while preserving the option for individual students to apply for credit on a case-by-case basis of worthwhile courses they have taken although the courses were not intended to be continuing education for mortgage licensees.

State statutory or constitutional authorization for this rule:

Subsection 61-2c-103(6)

Anticipated cost or savings to:

the state budget:

None--The rules for certification of continuing education courses for mortgage officers do not impact the State budget.

local governments:

None--Local governments do not employ mortgage loan officers and are not providers of education that targets mortgage loan officers, and so are not affected by the rules governing certification of continuing education courses for mortgage officers.

other persons:

There are no anticipated costs to other persons. Course providers are already required to precertify their courses. The rule change may save students the fees they would have to pay to obtain continuing education credit for a course that the course provider did not certify in advance as the course provider should have done.

Compliance costs for affected persons:

The only persons affected are the providers of continuing education. Since they are already required to precertify courses before offering the courses to students, there are no additional compliance costs caused by clarifying the language of the rule.

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

This rule clarifies requirements for precertification of continuing education courses by course providers, establishes limited circumstances and standards for individual licensees to request credit for courses not certified by the Division, and establishes application procedures for providers of courses approved in other states. No fiscal impact to businesses is anticipated as a result of these amendments. Russell C. Skousen, Executive Director

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

Direct questions regarding this rule to:

Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at swismer@utah.gov

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:

07/15/2005

This rule may become effective on:

07/16/2005

Authorized by:

Dexter Bell, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-208. Continuing Education.

R162-208-4. Subject Matter.

208.4 The following subject matter is acceptable for continuing education credit:

208.4.1 Each time the licensee renews, the required 14 credit hours must include a minimum of 2 credit hours of ethics and a minimum of 3 credit hours related to compliance with Federal and State laws governing mortgage lending.

208.4.2 The balance of the credit hours required for renewal may consist of any courses related to residential mortgage principles and practices that, in the opinion of the [c]Commission, would enhance the competency and professionalism of licensees.

208.4.3 The Division will maintain and will make available to any person upon request a list of course topics that have been approved by the Division and the [c]Commission as acceptable for continuing education purposes. The Division shall also post the list of course topics on its website.

R162-208-6. Education Committee.

208.6 The [c]Commission will appoint an Education Committee, the purpose of which will be to assist the Division and the [c]Commission in approving continuing education course topics. The Education Committee will make recommendations to the Division and the [c]Commission about whether any particular course topic is sufficiently related to residential mortgage principles and practices, and whether the topic would tend to enhance the competency and professionalism of licensees, to justify placing the topic on the list of course topics that are acceptable for continuing education purposes. The Division and the [c]Commission may accept or reject the Committee's recommendation on any course topic.

208.6.1 Any licensee or any course provider may request that the Education Committee recommend to the Division and the [c]Commission that a specific topic be approved as an acceptable topic for continuing education purposes. The request must be made in writing, addressed to the Education Committee in care of the Division, and must state specific reasons why the requester believes the topic qualifies for continuing education purposes.

208.6.2 If the Education Committee turns down a request to approve a certain topic for continuing education purposes, the party who requested that the topic be approved may petition the Division and the [c]Commission on an individual basis for evaluation and approval of the topic as being acceptable for continuing education purposes. The Petition must be made in writing, addressed to the Division and the [c]Commission in care of the Division, and must state specific reasons why the requester believes that the topic qualifies for continuing education purposes. If the Division and the [c]Commission find that the topic is acceptable for continuing education purposes, the Division shall add the topic to the list maintained by the Division of approved continuing education topics.

R162-208-8. Online Courses.

208.8 Online courses may be accepted by the Division for continuing education purposes if they comply with all of the other provisions of this rule and if: a) the student who successfully completes a course is able to print from the course provider's web site a continuing education certificate to submit to the Division that meets the requirements of Section 208.7 above; and b) the course provider has methods in place to determine whether a student has successfully completed a course and to insure that only those students who have successfully completed a course are able to print a course completion certificate.

R162-208-10. Continuing Education Course Certification.

208.10 Continuing education course providers who provide education courses specifically tailored for, or marketed to, Utah real estate, appraiser, or mortgage licensees are required to apply to the Division for certification of any course for which continuing education credit is promised at least 60 days prior to the anticipated date of the first class. Except as may be provided in Subsection 208.10.5, the Division will not grant continuing education credit to students who have taken courses that have not been certified by the Division in advance of the courses being taught to students.

208.10.1 Approved continuing education providers may include accredited colleges and universities, public or private vocational schools, national and state mortgage related professional societies and organizations, and proprietary schools and instructors.

208.10.2 Application Procedure. Except as provided in Subsection 208.10.3, education providers shall make application to the Division following the procedures set forth in Subsection 208.10.4.

208.10.3. [Those]A continuing education provider[s] who provides proof to the Division that a course offering has[have] been certified for continuing education [courses]credit in a minimum of three other states and that the provider has[have] specific standards in place for development of [their] courses and approval of [their ]instructors[, and who will provide those criteria to the Division for a one-time approval,] may be granted certification of [their]a course[s with no further application.] by filling out the form required by the Division and including the following with the application:

(a) a copy of the provider's standards used for developing curricula and for approving instructors;

(b) evidence that the course is certified in at least three states;

(c) a sample of the course completion certificate bearing all information required by Subsection 208.10.4(l) and

(d) all required fees, which shall be non-refundable.

208.10.[3]4 Submission of Course for Certification. The application shall include the non-refundable instructor certification fee of $50.00 and the non-refundable $70.00 course certification fee per course per instructor. The application shall be made on the form approved by the Division which shall include the following information:

(a) Name, phone number and address of the sponsor of the course, including the owners and the coordinator or director responsible for the offering;

(b) The title of the course offering including a description of the type of training; for example, seminar, conference, correspondence course, or similar offering;

(c) A copy of the course curriculum including a course outline of the comprehensive subject matter. Except for courses approved for specific distance education delivery, the course outline shall include the length of time to be spent on each subject area broken into segments of no more than 30 minutes each, the instructor for each segment, and the teaching technique used in each segment;

(d) A complete description of all materials to be distributed to the participants;

(e) The date, time and locations of each course;

(f) The procedure for pre-registration, the tuition or registration fee and a copy of the cancellation and refund policy;

(g) Except for courses approved for specific distance education delivery, the procedure for taking and maintaining control of attendance during class time, which procedure shall be more extensive than having the student sign a class roll;

(h) An instructor application on a form approved by the Division including the information as defined in R162-9.4;

(i) A signed statement agreeing to allow the course to be randomly audited on an unannounced basis by the Division or its representative;

(j) A statement defining how the course will meet the objectives of continuing education by providing education of a current nature and how it will improve a licensee's ability to provide greater protection of, and service to, the public;

(k) A signed statement agreeing not to perform marketing for a specific company or professional service, or to market personal sales products;

(l) A sample of the completion certificate, or the completion certificate required by the Division, if any, that will be issued which shall bear the following information:

(i) Space for the licensee's name, type of license and license number, date of course;

(ii) The name of the course provider, course title, hours of credit, certification number, and certification expiration date;

(iii) Space for the signature of the course sponsor and a space for the licensee's signature; and

(m) Signature of the course coordinator or director.

208.10.5 Individual licensees may apply to the Division for continuing education credit for a non-certified mortgage course that was not required by these rules to be certified in advance by filling out the form required by the Division and providing all information concerning the course required by the Division. If the licensee is able to demonstrate to the satisfaction of the Division that the course will likely improve the licensee's ability to better protect or serve the public and improve the licensee's professional licensing status, the Division may grant the individual licensee continuing education for the course.

206.10.5.1 Provided the subject matter of the course is applicable to residential mortgage loan business in Utah, a course approved for continuing education purposes in another state or jurisdiction may be granted Utah continuing education credit on a case by case basis.

208.10.[4]6 Distance Education. Continuing education courses in which the instruction does not take place in a traditional classroom setting, but rather through other media where teacher and student are separated by distance and sometimes by time, may be certified by the Division if the particular distance education method has been approved by the Commission and the Division. Application must be made to the Division on the form required by the Division for certification of courses that do not take place in a traditional classroom setting.

KEY: residential mortgage loan origination

[November 3, 2004]2005

61-2c-103(3)

61-2c-104(7)(d)(ii)

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at swismer@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.