1. (1) Except as otherwise provided in Subsections (2) and (3), the division shall issue a certificate of registration as a provider to a person that complies with Sections 13-42-105 and 13-42-106.

2. (2) The division may deny registration if:

   1. (a) the application contains information that is materially erroneous or incomplete;
   2. (b) an officer, director, or owner of the applicant has been convicted of a crime, or suffered a civil judgment, involving dishonesty or the violation of state or federal securities laws;
   3. (c) the applicant or any of the applicant's officers, directors, or owners has defaulted in the payment of money collected for others; or
   4. (d) the division finds that the financial responsibility, experience, character, or general fitness of the applicant or the applicant's owners, directors, employees, or agents does not warrant belief that the business will be operated in compliance with this chapter.

3. (3) The division shall deny registration if:

   1. (a) the application is not accompanied by the fee the division establishes in accordance with Section 63J-1-504; or
   2. (b) with respect to an applicant that is organized as a not-for-profit entity or has obtained tax-exempt status under the Internal Revenue Code, 26 U.S.C. Sec. 501, the applicant's board of directors is not independent of the applicant's employees and agents.

4. (4) Subject to adjustment of the dollar amount in accordance with Subsection 13-42-132(6), a board of directors is not independent for purposes of Subsection (3) if more than one-fourth of the applicant's members:

   1. (a) are affiliates of the applicant, as defined in Subsection 13-42-102(1)(a) or 13-42-102(1)(b)(i), (ii), (iv), (v), (vi), (vii), or (viii); or
   2. (b) within 10 years before the day on which the applicant's member first became a director of the applicant, the applicant's member was employed by or a director of a person that received from the applicant more than $25,000 in either the current year or the preceding year.

Amended by Chapter 95, 2026 General Session