DAR File No. 28980

[ 09/15/2006 Bulletin Table of Contents / Bulletin Page ]

Commerce, Real Estate

R162-3

License Status Change

NOTICE OF PROPOSED RULE

DAR File No.: 28980
Filed: 08/30/2006, 09:00
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The rule is amended to: 1) clarify the number of hours of continuing education that are required to activate an inactive license at the time of license renewal; and 2) provide for a "New Agent Course," with the content to be specified by the Utah Real Estate Commission.

Summary of the rule or change:

The rule is changed to: 1) clarify that if a licensee last renewed on inactive status (and therefore did not have to complete continuing education to renew), and the licensee wants to activate the license at the time of next license renewal, that person need only take the 12 hours of continuing education that is required to renew on active status; and 2) provide for a special continuing education course for new licensees, with the content of the course to be specified by the Utah Real Estate Commission.

State statutory or constitutional authorization for this rule:

Subsections 61-2-5.5(1)(a)(i) and (ii)

Anticipated cost or savings to:

the state budget:

None--State government agencies do not act as licensed real estate agents or brokers and therefore the rules for continuing education for real estate agents and brokers do not affect state government agencies. For this reason, there is no anticipated cost or savings to the state budget.

local governments:

None--Local governments do not act as licensed real estate agents or brokers and therefore the rules for continuing education for real estate agents and brokers do not affect local governments. For this reason, there is no anticipated cost or savings to the state budget.

other persons:

The only other persons who are affected by the continuing education rules for real estate agents and brokers are real estate agents and brokers and the parties who provide their continuing education. These rules should neither cost nor save real estate agents and brokers. It is not anticipated that these rules will save education providers any money. Providers of continuing education will not be required to offer the "New Agent Course." Those providers who do choose to offer the "New Agent Course" will incur costs to develop the course, but those costs should be no more than the cost to develop any new course offering that a provider chooses to offer, and the course development costs will be recouped from the agents who take the course.

Compliance costs for affected persons:

As indicated above, those providers of continuing education who choose to offer the "New Agent Course" will incur costs to develop the course, but those costs should be no more than the cost to develop any new course offering that a provider chooses to offer, and the course development costs will be recouped from the agents who take the course.

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

This rule filing clarifies continuing education requirements. No fiscal impact to businesses is anticipated beyond those indicated in the rule summary. 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:

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:

10/16/2006

This rule may become effective on:

10/24/2006

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 [in]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. 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.

R162-3-6. Renewal and Reinstatement.

3.6.1 A license renewal notice shall be sent by the Division to the licensee at the mailing address shown on the division records. The renewal notice shall specify the requirements for renewal and shall require that the licensee document or certify that the requirements have been met. The licensee must apply to renew and pay all applicable fees on or before the expiration shown on the notice. Renewal of an active Principal Broker license requires certification in the form required by the division that the business name under which the licensee is operating is still current and in good standing with the Division of Corporations and that all real estate trust accounts are current.

3.6.1.1 Continuing education requirement. All licensees with active licenses who are applying to renew shall have completed the 12 hours of approved continuing education required by Section 61-2-9 prior to submitting their applications for renewal.

3.6.1.1.1 Continuing education requirement for new licensees. During a licensee's first license term, the licensee's 12-hour continuing education requirement shall consist of the Division's 3-hour "Core Course" and a 9-hour live "New Agent Course." The Commission shall approve a standard course outline for the "New Agent Course."

3.6.1.2 Applications filed by mail. The division will consider a properly completed application that has been postmarked on or before the expiration date shown on the renewal notice to have been timely filed.

3.6.1.3 Documentation of continuing education. Any licensee who renews on-line on the division's web site and certifies that the required continuing education has been completed shall maintain the original course completion certificates supporting that certification for three years following renewal. The licensee shall produce those certificates for audit upon request by the division.

3.6.1.4 Misrepresentation on application. Any misrepresentation in an application for renewal will be considered a separate violation of these rules and separate grounds for disciplinary action against the licensee, regardless of whether the application is filed with the division by mail or in person, or made on-line.

3.6.2. A license expires if it is not renewed on or before its expiration date. When an active license expires, the licensee's affiliation with a principal brokerage automatically terminates.

3.6.3 The license may be renewed for a period of thirty days after the expiration date by meeting all of the conditions for renewal and, in addition, paying a non-refundable late fee, and, if the licensee will be actively licensed, submitting the forms required by the Division to activate a license.

3.6.4. After this 30-day period and until six months after the expiration date the license may be reinstated by meeting all of the conditions for renewal and, in addition: a) paying a non-refundable late fee and a non-refundable reinstatement fee; b) submitting proof of the 12 hours of continuing education that is required to renew a license and the 12 additional hours of continuing education required by Section 61-2-9(2)(c)(ii); and c) if the licensee will be actively licensed, submitting the forms required by the Division to activate a license.

3.6.4.1 Additional Continuing Education Hours for Reinstatement. Courses that have been approved by the Division for continuing education purposes in the following topics will be acceptable toward the additional 12 hours of continuing education required for reinstatement by Section 61-2-9(2)(c)(ii): agency, contract law, the Real Estate Purchase Contract and other state-approved forms, ethics, Utah law, and closing/settlement.

3.6.4.1.1 Continuing education hours that are submitted to reinstate a license may not be the same continuing education hours that were submitted toward a licensee's prior renewal. Continuing education hours that are submitted to reinstate a license may not be used again toward the continuing education required on the licensee's next renewal.

3.6.5. If the licenses of licensees affiliated with a principal broker are inactivated because of the principal broker's failure to renew his license when due, the failure to renew the license in a timely manner shall be separate grounds for disciplinary action against the principal broker.

3.6.6. If the Division has received a licensee's application for renewal in a timely manner but the information is incomplete, the division may grant the licensee a 15-day grace period to complete the application, during which time the division shall extend the license.

3.6.7. Education credit will be given for a course taken in another state provided the course has been certified for continuing education purposes in another state. These courses shall meet the Utah requirement of protection of the public, except that credit will not be given for education where the subject matter pertains to another state's license laws.

3.6.7.1. Prior approval must be obtained from the division before credit will be granted. Evidence must be provided to the Division that the course was certified by another licensing jurisdiction at the time the course was taken.

KEY: real estate business

Date of Enactment or Last Substantive Amendment: [May 20, 2004]2006

Notice of Continuation: June 3, 2002

Authorizing, Implemented, or Interpreted Law: 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.

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