DAR File No. 29736

Commerce, Real Estate

R162-3-6

Renewal and Reinstatement

NOTICE OF PROPOSED RULE

DAR File No.: 29736
Filed: 03/26/2007, 05:12
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to shorten and simplify the provisions related to license renewal and reinstatement and to change the provision related to the Division of Real Estate's "core" course requirement.

Summary of the rule or change:

Provisions detailing what information will be on the renewal notice and to where it will be mailed are deleted, as are those related to when an application will be considered timely and the extension of a grace period for an incomplete application for renewal. The provision related to the "core" courses is changed so that the Division of Real Estate is not the only provider of the required "core" courses. The provision making it an actionable offense if a broker's failure to renew on time causes the inactivation of the broker's sales agents is deleted. The balance of the current rule is simplified and reorganized.

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:

The Division of Real Estate will no longer be the only provider of the "core" courses. If the Division chooses not to provide the "core" courses but leave it to private providers to supply the "core" courses, the Division of Real Estate budget will be saved the cost of providing the "core" courses.

local governments:

None--Local governments are not licensed real estate sales agents and brokers, and therefore the rules related to renewal and reinstatement of these licenses have no impact on local governments. Local governments are not providers of continuing education for real estate licensees, and therefore, the change in the provisions related to "core" courses will not have any impact on local governments.

other persons:

The only persons who are impacted by the rules on license renewal and reinstatement are the holders of those licenses. The simplification of the rules related to renewal and reinstatement should neither cost nor save these persons any money. The only persons who are affected by the change to the provisions related to the "core" courses are the providers of continuing education. By broadening the rules so that the "core" courses may be supplied by private enterprise, private education providers will potentially have a new source of income.

Compliance costs for affected persons:

The only persons who are impacted by the rules on license renewal and reinstatement are the holders of those licenses. The simplification of the rules related to renewal and reinstatement should not cost licensees any money. The only persons affected by the change to the provisions related to the "core" courses are the providers of real estate continuing education. Broadening the rules so that private providers may supply the "core" courses will not cost education providers any money and will actually give them a new source of potential income.

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

This rule filing simplifies the license renewal and reinstatement provisions. The filing also permits private providers to teach core courses, which could have a positive fiscal impact for such businesses. No further 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 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:

05/15/2007

This rule may become effective on:

05/23/2007

Authorized by:

Derek Miller, Director

R162. Commerce, Real Estate.

R162-3. License Status Change.

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.]3.6.1 Licenses are valid for a period of two years. A license may be renewed by submitting all forms and fees required by the Division prior to the expiration date of the current license. Licenses not properly renewed shall expire on the expiration date.

3.6.1.1 A license may be reinstated for a period of thirty days after expiration by complying with all requirements for a timely renewal and paying a non-refundable late fee.

3.6.1.2 A license may be reinstated after thirty days and within six months after expiration by complying with all requirements for a timely renewal and paying a non-refundable reinstatement fee and submitting proof of having completed 12 hours of continuing education in addition to the 12 hours of continuing education required to renew a license on active status.

3.6.1.3 A license that has been expired for more than six months may not be reinstated and an applicant must apply for a new license following the same procedure as an original license.

3.6.2 Renewal Requirements.

3.6.2.1 Continuing Education. To renew a license on active status an applicant must submit to the division proof of having completed, during the previous license period, 12 hours of continuing education from courses certified by the division.

3.6.2.1.1 During the first license period, a licensee must take the 12-hour "New Sales Agent Course" certified by the division.

3.6.2.1.2 During subsequent license periods, a licensee must take at least 6 hours of continuing education from courses certified by the division as "core" as defined in Rule R162.9.2.1. A licensee must take any remaining hours of continuing education from courses certified by the division as "elective" as defined in Rules R162.9.2.2 - 9.2.2.10.

3.6.2.1.2.1 The division may grant continuing education credit for non-certified courses submitted by a renewal applicant in the form required by the division, if the course was not required by these rules to be certified and the division determines that the course meets the continuing education objectives listed in Rule R162.9.2.

3.6.2.1.3 Licensees must retain original course completion certificates for three years following renewal and produce those certificates when audited by the division.

3.6.2.2 Principal Broker. To renew a principal broker license on active status an applicant must certify that the business name under which the licensee is operating is current and in good standing with the Division of Corporations and that all real estate trust accounts are current and in compliance with Rule R162-4.2.

3.6.2.3 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.

 

KEY: real estate business

Date of Enactment or Last Substantive Amendment: [November 16, 2006]2007

Notice of Continuation: June 3, 2002

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