DAR File No. 28059

Commerce, Real Estate

R162-9-2

Education Providers

NOTICE OF PROPOSED RULE

DAR File No.: 28059
Filed: 06/30/2005, 04:55
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Division of Real Estate has had a problem with an education provider who failed to obtain a certification from the Division that a certain course could be offered to real estate agents for continuing education credit, and then told the students to apply individually to the Division after the fact for continuing education credit. The rule is revised to prevent this type of abuse of students by continuing education providers. The Division wishes to offer a streamlined course certification procedure to those course providers who have standards in place for development of their courses and who have been certified for continuing education purposes in other states while still insuring that the course offerings meet quality standards, and that the fee that the out-of-state providers pay is equal to the certification fees paid by in-state providers.

Summary of the rule or change:

The rule is revised to explicitly state that a course provider marketing to Utah licensees must obtain certification of a course from the Division prior to offering the course to students for continuing education credit, and that the Division will not give continuing education credit to students who have taken courses that have not been properly certified. The process for an out-of-state provider to obtain certification of a course that is approved in other states will be revised to make sure that standards are met while not imposing an undue regulatory burden on the out-of-state provider.

State statutory or constitutional authorization for this rule:

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

Anticipated cost or savings to:

the state budget:

None--State government is not affected by the process of certification of continuing education providers for real estate agents. The Division of Real Estate will receive a modest additional amount of revenue in an amount that cannot be anticipated because of the rule change that eliminates a one-time certification, and therefore a one-time fee, for out-of-state providers. Those out-of-state providers will now have to pay the same certification and certification renewal fees every two years, the same as in-state providers.

local governments:

None--Local governments are not in the business of providing continuing education to real estate agents.

other persons:

The only persons who could be affected by the changes to Section R162-9-2 would be real estate agents and the providers of their continuing education. If continuing education providers fail to have their courses certified for continuing education purposes before offering the courses to students, students who are not able to obtain continuing education credit for those courses will likely demand a tuition refund from the course providers. However, course providers can avoid this result by abiding by the rule and certifying their courses in advance. The changes to current Subsection R162-9-2(9.2.2) (now renumbered to 9.2.3) will eliminate a one-time approval, and therefore a one-time fee, that currently exists for some out-of-state providers. Although there is a streamlined certification process available to qualifying out-of-state providers, they will have to pay certification and renewal fees every two years like in-state providers instead of only paying a one-time fee.

Compliance costs for affected persons:

If continuing education providers fail to have their courses certified for continuing education purposes before offering the courses to students, students who are not able to obtain continuing education credit for those courses will likely demand a tuition refund from the course providers. However, course providers can avoid this result by complying with the rule and certifying their courses in advance. The changes to current Subsection R162-9-2(9.2.2) (now renumbered to 9.2.3) will eliminate a one-time approval, and therefore a one-time fee, that currently exists for some out-of-state providers. Although there is a streamlined certification process available to qualifying out-of-state providers, they will have to pay certification and renewal fees every two years like in-state providers instead of only paying a one-time fee.

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

This rule filing 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. The only fiscal impact to businesses appears to be to out-of-state education providers who will now be required to pay required certification fees every two years like in-state providers. 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:

08/15/2005

This rule may become effective on:

08/16/2005

Authorized by:

Dexter Bell, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-9. Continuing Education.

R162-9-2. Education Providers.

9.2. Continuing education providers who provide education courses specifically tailored for, or marketed to, Utah real estate, appraiser, or mortgage licensees, and who intend that real estate licensees shall receive continuing education credit for such courses, are required to apply to the Division for course certification [of their courses ]prior to the courses being taught to students. Except as may be provided in Subsections 9.2.4, 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.

9.2.1 Approved providers may include accredited colleges and universities, public or private vocational schools, national and state real estate related professional societies and organizations, real estate boards, and proprietary schools or instructors.

9.2.2 Application procedure. Except as provided in Subsection 9.2.3, education providers shall make application to the Division following the procedures set for in Section 9.5.

9.2.[2]3 [Those]A real estate education provider[s] who provides proof to the division that the provider's course offering has[have] been certified for continuing education credit[courses] 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 that criteria to the division of real estate for a one-time approval,] may be granted course certification [of their courses with no further application being necessary.]by filling out the form required by the Division and including 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 certification bearing all information required by Section 9.5.2.15; and

(d) all required fees, which shall be nonrefundable.

[9.2.3]9.2.4 Individual [L]licensees may apply to the [d]Division for continuing education credit for a non-certified real estate course that was not required by these rules to be certified in advance by the Division by filling out the form required by the Division and providing all information concerning the course required by the Division. [taken from a national provider that] If the licensee is able to demonstrate to the satisfaction of the Division that the course[believes] will likely improve [his]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 credit for the course.[

9.2.3.1 A licensee may request approval of the course from the division and, for an appropriate fee, the division will review the merits of the non-certified course and determine whether the course meets the criteria for Utah real estate continuing education.]

9.2.4.1 Provided the subject matter of the course taken is not exclusive to the other state or jurisdiction, a course approved for continuing education in another state[/] or jurisdiction may be granted Utah continuing education credit on a case by case basis.

KEY: continuing education

[October 21, 2004]2005

Notice of Continuation June 26, 2002

61-2-5.5

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.