Section 402 – Disciplinary action.

• (1) Subject to the requirements of Section 61-2c-402.1, the commission, with the concurrence of the division, may impose a sanction described in Subsection (2) against a person if the person:
  • (a)
    • (i) is a licensee or a person required to be licensed under this chapter; and
    • (ii) violates this chapter; or
  • (b)
    • (i) is not registered under this chapter; and
    • (ii) violated a provision of this chapter during a period in which:
      • (A) the provision of this chapter was in effect; and
      • (B) the person was registered or required to be registered under this chapter; or
  • (c)
    • (i) is a certified education provider or person required to be certified to provide prelicensing or continuing education under this chapter; and
    • (ii) violates this chapter.

• (2) The commission, with the concurrence of the director, may against a person described in Subsection (1):
  • (a) impose an educational requirement;
  • (b) impose a civil penalty against the individual or entity in an amount not to exceed the greater of:
    • (i) $5,000 for each violation; or
    • (ii) the amount equal to any gain or economic benefit derived from each violation;
  • (c) deny an application for an original license;
  • (d) do any of the following to a license under this chapter:
    • (i) suspend;
    • (ii) revoke;
    • (iii) place on probation;
    • (iv) reduce a lending manager license to a loan originator license;
    • (v) deny renewal;
    • (vi) deny reinstatement; or
    • (vii) in the case of a denial of a license or a suspension that extends to the expiration date of a license, set a waiting period for a person to apply for a license under this chapter;
  • (e) issue a cease and desist order;
  • (f) require the reimbursement of the division of costs incurred by the division related to the recovery, storage, or destruction of a record that the person disposes of in a manner that violates this chapter or a rule made under this chapter;
  • (g) modify a sanction described in Subsections (2)(a) through (f) if the commission finds that the person complies with court ordered restitution; or
  • (h) impose any combination of sanctions described in this Subsection (2).

• (3)
  • (a) If the commission, with the concurrence of the division, issues an order that orders a fine or educational requirements as part of a disciplinary action against a person, including a stipulation and order, the commission shall state in the order the deadline by which the person shall comply with the fine or educational requirements.
  • (b) If a person fails to comply with a stated deadline:
    • (i) the person’s license or certificate is automatically suspended:
      • (A) beginning the day specified in the order as the deadline for compliance; and
      • (B) ending the day on which the person complies in full with the order; and
    • (ii) if the person fails to pay a fine required by an order, the division may begin a collection process:
      • (A) established by the division by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
      • (B) subject to Title 63A, Chapter 3, Part 5, Office of State Debt Collection.

• (4)
  • (a) A person whose license was revoked under this chapter before May 11, 2010, may request that the revocation be converted to a suspension under this Subsection (4):
    • (i) if the revocation was not as a result of a felony conviction involving fraud, misrepresentation, deceit, dishonesty, breach of trust, or money laundering; and
    • (ii) by filing a written request with the division.
  • (b) Upon receipt of a request to convert a revocation under this Subsection (4), the commission, with the concurrence of the director, shall determine whether to convert the revocation.
  • (c) The commission may delegate to the division the authority to make a decision on whether to convert a revocation.
  • (d) If the division, acting under Subsection (4)(c), denies a request to convert a revocation, the person who requests the conversion may appeal the decision in a hearing conducted by the commission:
    • (i) after the division denies the request to convert the revocation; and
    • (ii) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
  • (e) The commission may delegate to the division or an administrative law judge the authority to conduct a hearing described in Subsection (4)(d).

• (5)
  • (a) A person whose license the commission revokes in accordance with this section may file a written request with the division for the vacation of the license revocation, if the person:
    • (i) has not held a license under this chapter for at least eight years before the day on which the person files the request; and
    • (ii) has not been convicted of a felony involving:
      • (A) fraud;
      • (B) misrepresentation;
      • (C) deceit;
      • (D) dishonesty;
      • (E) breach of trust; or
      • (F) money laundering.
  • (b) After receiving a written request a person makes in accordance with Subsection (5)(a), the commission may vacate the revocation of the person’s license:
    • (i) after a hearing; and
    • (ii) with the concurrence of the division.
  • (c) A person whose license revocation is vacated in accordance with this Subsection (5) may apply for licensure in accordance with this chapter.

Amended by Chapter 204, 2022 General Session