1. (1) As used in this section, "qualifying violation" means a violation of:

   1. (a) Subsections 58-91-501(1) through (4), Subsection 58-91-501(6), or Subsections 58-91-501(8) through (9); or
   2. (b) Subsection 58-91-503(1).

2. (2)

   1. (a) If an investigation shows a person committed a qualifying violation, or broke a related rule or order the division issued regarding a qualifying violation, the division shall:

      1. (i) issue a citation;
      2. (ii) attempt a stipulated settlement; or
      3. (iii) require the person to appear in an adjudicative proceeding under Title 63G, Chapter 4, Administrative Procedures Act.

   2. (b) The division may assess a fine and issue a cease-and-desist order based on:

      1. (i) an uncontested citation;
      2. (ii) a stipulated settlement; or
      3. (iii) a violation finding in an adjudicative proceeding.

3. (3)

   1. (a) Each citation shall:

      1. (i) be in writing;
      2. (ii) describe the violation with specific reference to statute, rule, or order;
      3. (iii) instruct the recipient to request a hearing in writing within 20 calendar days after the day on which the citation is issued if the recipient contests; and
      4. (iv) state the consequences of failing to contest or pay fines.

   2. (b) The division may serve the citation:

      1. (i) according to the Utah Rules of Civil Procedure;
      2. (ii) in person or via an agent; or
      3. (iii) by mail.
   3. (c) If the recipient does not request a hearing within 20 calendar days after the day on which the citation is issued, the citation becomes a final division order.
   4. (d) The division may extend the 20-calendar day period for cause.

4. (4)

   1. (a) The division may refuse to issue or renew, suspend, revoke, or place on probation the license of a person that does not comply with a final citation.
   2. (b) The division may deny licensure after the applicant fails to comply with a final citation.
   3. (c) The division shall issue a citation within one year of the reported violation.

5. (5) The director or designee shall assess a fine for a qualifying violation as follows:

   1. (a) first offense: up to $1,000;
   2. (b) for second offense: up to $2,000; and
   3. (c) additional offenses: up to $2,000 per day of continued offense.

6. (6)

   1. (a) The division considers a violation a second or subsequent offense if:

      1. (i) a prior final order established a qualifying violation; or
      2. (ii) the division initiated an action for a prior offense and later finds a second violation during a new investigation before resolving the initial case.
   2. (b) The division shall follow this section when issuing final orders for repeated violations.
7. (7) If five or more years pass between violations, the division may not treat a new violation as a subsequent violation.
8. (8) The division may treat each instance of the same type of violation under Section 58-94-501 as a separate offense and may impose a separate penalty for each.

9. (9) The division may immediately suspend a license if:

   1. (a) the licensee receives a citation for violating Section 58-94-501; or

   2. (b) the licensee fails to:

      1. (i) apply for a new license for a new classification or business structure; or
      2. (ii) notify the division of a change in qualifier.

Enacted by Chapter 42, 2026 General Session