30-10-216. Registration requirements for multilevel distribution companies. (1) It is unlawful for a person to transact business in this state as a multilevel distribution company unless the person is:
     (a) registered under this section; or
     (b) a member of the direct selling association.
     (2) A multilevel distribution company may apply for registration by filing an application in the form prescribed by the commissioner. An application must be submitted to the department by certified mail.
     (3) The commissioner shall issue an order making a registration effective when the registration requirements are met. An effective registration of a multilevel distribution company may not be withdrawn or terminated without the express written consent of the commissioner.
     (4) Registration of a multilevel distribution company:
     (a) is effective until December 31 following the registration; and
     (b) may be renewed pursuant to subsection (5).
     (5) Registration of a multilevel distribution company may be renewed by filing, prior to the expiration of the registration, an application containing information that the commissioner may require to indicate any material change in the information contained in the original application or any material change in a renewal application for registration. The renewal application must be submitted to the department by certified mail.
     (6) The commissioner may by order deny, suspend, or revoke registration of any multilevel distribution company if the commissioner finds that the order is in the public interest and that the applicant or registrant or person directly or indirectly controlling the applicant or registrant:
     (a) has filed an application for registration under this section that, as of its effective date or as of any date after filing in the case of an order denying effectiveness, was incomplete in any material respect or contained any statement that was, in light of the circumstances under which it was made, false or misleading with respect to any material fact;
     (b) has willfully violated or willfully failed to comply with any provision of this part;
     (c) is permanently or temporarily enjoined by any court of competent jurisdiction from transacting business as a multilevel distribution company;
     (d) is the subject of an order of the commissioner denying, suspending, or revoking registration as a multilevel distribution company;
     (e) has engaged in dishonest or unethical business practices;
     (f) is insolvent, either in the sense that the person's liabilities exceed the person's assets or in the sense that the person cannot meet obligations as they mature, but the commissioner may not enter an order against a multilevel distribution company without a finding of insolvency as to the multilevel distribution company; or
     (g) has not complied with a condition imposed by the commissioner under this section.

     History: En. Sec. 1, Ch. 286, L. 2013.