DAR File No. 28107

Insurance, Title and Escrow Commission

R592-2

Title Insurance Administrative Hearings and Penalty Imposition

NOTICE OF PROPOSED RULE

DAR File No.: 28107
Filed: 07/27/2005, 09:36
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to establish procedures for the Title and Escrow Commission to delegate authority to the department's administrative law judge to conduct administrative hearings for title license applicants, a title licensee, or a title continuing education program, or to administer the hearing themselves. This rule also establishes procedures for the Commission and the department to concur with penalties imposed on a title licensee.

Summary of the rule or change:

The purpose of this rule is to establish procedures for the Title and Escrow Commission to delegate authority to the department's administrative law judge to conduct administrative hearings for title license applicants, a title licensee, or a title continuing education program, or to administer the hearing themselves. This rule also establishes procedures for the Commission and the department to concur with penalties imposed on a title licensee.

State statutory or constitutional authorization for this rule:

Section 31A-2-404

Anticipated cost or savings to:

the state budget:

The changes to this rule will not require anything new of department licensees, therefore, there will be no change in filings required or fees paid to the department that go into the state budget.

local governments:

This rule only applies to the relationship between the department and their licensees. It does not affect local government laws or procedures.

other persons:

This rule establishes procedures to be followed by the Commission and the department and does not affect costs to the title industry or their consumers.

Compliance costs for affected persons:

This rule establishes procedures to be followed by the Commission and the department and does not affect costs to the title industry or their consumers.

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

This new rule will not have a fiscal impact on Utah businesses. D. Kent Michie, Commissioner

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:

Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@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:

09/14/2005

This rule may become effective on:

09/15/2005

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R592. Insurance, Title and Escrow Commission.

R592-2. Title Insurance Administrative Hearings and Penalty Imposition.

R592-2-1. Authority.

This rule is promulgated pursuant to Subsections 31A-2-404(2)(e) and (h), which direct the Title and Escrow Commission to make rules pertaining to the conduct of title administrative hearings, the delegation of title administrative hearings, and the imposition of penalties for violations of statute or rule.

R592-2-2. Purpose and Scope.

(1) The purpose of this rule is

(a) to establish procedures for the Commission:

(i) to delegate authority to the department's administrative law judge to conduct an administrative hearing for a title license applicant, a title licensee, or a title continuing education program; or

(ii) to conduct an administrative hearing for a title license applicant, a title licensee, or a title continuing education program; and

(b) to establish procedures for the Commission and the commissioner to concur with penalties imposed on a title licensee, applicant for a title license, unlicensed person doing business as a title licensee, and continuing education providers submitting title continuing education programs for approval, for violations of statute, rule, Order of the Commissioner, or Order of the Commission.

(2) This rule applies to all title licensees, applicants for a title insurance license, unlicensed persons doing business as a title licensee, and continuing education providers submitting title continuing education programs for approval.

R592-2-3. Definitions.

"Title licensee" has the same meaning as found in Section 31A-2-402(3).

R592-2-4. Administrative Hearings.

The Title and Escrow Commission may delegate the conduct of administrative hearings involving a title license applicant, a title licensee, or a title continuing education program to the department's administrative law judge.

(1) The Commission will receive a periodic report listing each administrative hearing requested by a title license applicant, a title licensee, a title continuing education program or by the commissioner to resolve an investigation of a title licensee's conduct, the denial of a title license application, or the disapproval of a title continuing education program.

(2) The Commission will review the report at each meeting and, either:

(a) delegate the conduct of the requested administrative hearing to the department's administrative law judge; or

(b) determine that the Commission will conduct the requested administrative hearing.

(3) For an administrative hearing conducted by the Commission, the Commission will:

(a) set the date, time, and place of the administrative hearing;

(b) notify the title license applicant, the title licensee, or the continuing education program of the date, time, and place of the administrative hearing;

(c) conduct the hearing:

(i) hear the evidence; and

(ii) make a decision based on the evidence presented;

(d) impose penalties, with the concurrence of the commissioner, in accordance with Sections 31A-2-308, 31A-23a-111, 31A-23a-112, 31A-26-213, and 31A-26-214; and

(e) issue an Order on Hearing.

(4) The department's administrative law judge will assist the Commission in its conduct of an administrative hearing by ruling on admissibility of evidence and motions pertaining to the hearing.

R592-325-5. Imposition of Penalties.

(1) The department will investigate alleged violations of statute or rule by a title licensee, applicants for a title insurance license, unlicensed person doing business as a title licensee, and continuing education providers submitting title continuing education programs for approval.

(2) If the resolution of the investigation is other than an administrative hearing or is an administrative hearing conducted by the department's administrative law judge, and the administrative proceeding imposes a penalty, the Commission must concur with the penalty imposed, prior to the imposition of the penalty.

(3) If the resolution of the investigation is an administrative hearing conducted by the Commission, and the administrative hearing imposes a penalty, the commissioner must concur with the penalty imposed, prior to the imposition of the penalty.

R592-2-6. Severability.

If any section, term, or provision of this rule shall be adjudged invalid for any reason, such judgment shall not affect, impair or invalidate any other section, term, or provision of this rule and the remaining sections, terms, and provisions shall be and remain in full force.

R592-2-7. Enforcement Date.

The commissioner will begin enforcing this rule upon the rule's effective date.

KEY: title insurance

2005

31A-2-402

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@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.