Section 201 – Registration requirements — Rulemaking.

• (1)
  • (a) Beginning January 1, 2023, it is unlawful for a person to engage in a commercial financing transaction as a provider in Utah or with a Utah resident, unless the person:
    • (i) registers with the department in accordance with this chapter; and
    • (ii) maintains a valid registration.
  • (b) An officer or employee of a person required to register under this section is not required to register if the person for whom the individual is an officer or employee is registered.

• (2)
  • (a) A registration and a renewal of registration expires on December 31 of each year.
  • (b) To register or renew a registration under this section, a person shall:
    • (i) pay an original registration fee established under Subsection 7-1-401(8); and
    • (ii) submit a registration statement containing the information described in Subsection (2)(d).
  • (c) To renew a registration under this section, a person shall:
    • (i) pay the annual fee established under Subsection 7-1-401(5); and
    • (ii) submit a renewal statement containing the information described in Subsection (2)(d).
  • (d) A registration or renewal statement shall state:
    • (i) the name of the person;
    • (ii) the name in which the business will be transacted if different from that required in Subsection (2)(d)(i);
    • (iii) the address of the person’s principal business office, regardless of whether in the state or outside the state;
    • (iv) the address of each office in this state at which the person engages in commercial financing transactions;
    • (v) if the person engages in commercial financing transactions in this state but does not maintain an office in the state, a brief description of the manner in which the business is conducted;
    • (vi) the name and address in this state of a designated agent upon whom service of process may be made;
    • (vii) whether there is a conviction of a crime:
      • (A) involving an act of fraud, dishonesty, breach of trust, or money laundering; and
      • (B) with respect to that person, an officer, director, manager, operator, or principal of that person, or an employee of that person engaged in the business described in this chapter;
    • (viii) evidence satisfactory to the department that the person is registered with the Nationwide Multistate Licensing System and Registry; and
    • (ix) any other information required by the rules of the department.
  • (e)
    • (i) The commissioner may impose an administrative fine determined under Subsection (2)(e)(ii) on a person if:
      • (A) the person is required to be registered under this chapter;
      • (B) the person fails to register or renew a registration in accordance with this chapter;
      • (C) the department notifies the person that the person is in violation of this chapter for failure to be registered; and
      • (D) the person fails to register within 30 days after the day on which the person receives the notice described in Subsection (2)(e)(i)(C).
    • (ii) Subject to Subsection (2)(e)(iii), the administrative fine imposed under this Subsection (2)(e) is:
      • (A) $500 if the person has zero or one office in this state at which the person engages in commercial financing transactions; or
      • (B) if the person has two or more offices in this state at which the person engages in commercial financing transactions, $500 for each office at which the person engages in commercial financing transactions.
    • (iii) The commissioner may reduce or waive a fine imposed under this Subsection (2)(e) if the person shows good cause.

• (3) If the information in a registration or renewal statement required under Subsection (2) becomes inaccurate after filing, a person is not required to notify the department until:
  • (a) that person is required to renew the registration; or
  • (b) the department specifically requests earlier notification.

• (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department may make rules consistent with this section:
  • (a) providing for the form, content, and filing of a registration and renewal statement; and
  • (b) providing for the transition of persons registering with the nationwide database.

Enacted by Chapter 449, 2022 General Session