1. (1) In this section, "insolvent" means a provider:

   1. (a) ceases to pay debts in the ordinary course of business other than as a result of good-faith dispute;
   2. (b) is unable to pay debts as the debts become due; or
   3. (c) is insolvent within the meaning of the federal bankruptcy law, 11 U.S.C. Sec. 101 et seq.

2. (2) The division may suspend, revoke, or deny renewal of a provider's registration if:

   1. (a) a fact or condition exists that, if the fact or condition had existed when the registrant applied for registration as a provider, would have been a reason for the division denying the registration;
   2. (b) the provider commits a material violation of this chapter or a rule or order of the division under this chapter;
   3. (c) the provider is insolvent;

   4. (d) the provider, an employee or affiliate of the provider, a lead generator for the provider, a person administering an account for the provider in accordance with Subsection 13-42-122(2), or a person to which the provider delegates the provider's obligations under an agreement or this chapter:

      1. (i) refuses to permit the division to make an examination authorized by this chapter;
      2. (ii) fails to comply with Subsection 13-42-132(2)(b) no later than 15 days after the day on which the division makes a request in accordance with Section 13-42-132; or
      3. (iii) makes a material misrepresentation or omission in complying with Subsection 13-42-132(2)(b); or
   5. (e) the provider fails to respond within a reasonable time and in an appropriate manner to a communication from the division.

3. (3) If a provider becomes insolvent, the provider shall continue to provide debt-management services to an individual with whom the provider has an agreement until:

   1. (a) with the division's approval, the provider transfers the agreement to another registered provider; or
   2. (b) the provider returns to the individual all unexpended money that is under the provider's control.
4. (4) If a provider fails to comply with Subsection 13-42-122(8) or if the division otherwise finds that the public health or safety or general welfare requires emergency action, the division may order a summary suspension of the provider's registration, effective on the date the division specifies in the order.
5. (5) If the division suspends, revokes, or denies renewal of the registration of a provider, the division may seek a court order authorizing seizure of any or all of the money in a trust account required by Section 13-42-122, books, records, accounts, and other property of the provider which are located in this state.
6. (6) If the division suspends or revokes a provider's registration, the provider may appeal and request a hearing in accordance with Title 63G, Chapter 4, Administrative Procedures Act.

Amended by Chapter 95, 2026 General Session