In accordance with Title 63G, Chapter 4, Administrative Procedures Act, the director may initiate adjudicative proceedings to deny, suspend, or revoke an application or registration if:

1. (1) the division finds that the denial, suspension, or revocation is in the public interest;

2. (2)

   1. (a) the application for registration or renewal is incomplete or misleading in a material respect; or

   2. (b) the applicant or the applicant's principal:

      1. (i) violates, causes a violation, allows a violation, or fails to satisfy the requirements of a provision of:

         1. (A) this chapter; or
         2. (B) a rule the division makes in accordance with this chapter;
      2. (ii) violates Chapter 11, Utah Consumer Sales Practices Act;

      3. (iii) is enjoined by a court, or is the subject of an administrative order issued in this or another state, if the injunction or order:

         1. (A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or
         2. (B) is based on a finding of lack of integrity, truthfulness, or mental competence of the applicant;
      4. (iv) obtains or attempts to obtain a registration by misrepresenting a material fact;
      5. (v) fails to provide information the division requests; or
      6. (vi) fails to pay a fine imposed by the division or a court;
      7. (vii) fails to pay the fee described in Subsection 13-23-104(2)(b)(i); or
      8. (viii) is convicted of a crime involving theft, fraud, or dishonesty.
3. (3) the applicant's or registrant's surety bond or certificate of deposit ceases to be in effect;
4. (4) the applicant or registrant requested an exemption from maintaining a surety bond or certificate of deposit under Section 13-23-105, but does not meet the requirements for exemption;
5. (5) the applicant or registrant excluded from the principal amount calculation described in Subsection 13-23-104(8) for a surety bond or certificate of deposit, a contract that did not meet the requirements for exclusion described in Section 13-23-105; or
6. (6) the applicant or registrant ceases to provide fitness center services.

Renumbered and Amended by Chapter 95, 2026 General Session