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) the division finds that the denial, suspension, or revocation is in the public interest;
(2)
(a) the application for registration or renewal is incomplete or misleading in a material respect; or
(b) the applicant or the applicant's principal:
(i) violates, causes a violation, allows a violation, or fails to satisfy the requirements of a provision of:
(A) this chapter; or
(B) a rule the division makes in accordance with this chapter;
(ii) violates Chapter 11, Utah Consumer Sales Practices Act;
(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:
(A) includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; or
(B) is based on a finding of lack of integrity, truthfulness, or mental competence of the applicant;
(iv) obtains or attempts to obtain a registration by misrepresenting a material fact;
(v) fails to provide information the division requests; or
(vi) fails to pay a fine imposed by the division or a court;
(vii) fails to pay the fee described in Subsection 13-23-104(2)(b)(i); or
(viii) is convicted of a crime involving theft, fraud, or dishonesty.
(3) the applicant's or registrant's surety bond or certificate of deposit ceases to be in effect;
(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) 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) the applicant or registrant ceases to provide fitness center services.