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H.B. 324 Enrolled
AN ACT RELATING TO OCCUPATIONAL AND PROFESSIONAL LICENSING;
REPEALING THE MONETARY LIMIT FOR CONTRACTORS; AMENDING THE
FINANCIAL RESPONSIBILITY REQUIREMENTS FOR CONTRACTORS; EXTENDING
THE CITATION AUTHORITY OF THE DIVISION FOR VIOLATIONS OF THE LICENSING
ACT; AND MAKING TECHNICAL CHANGES.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
58-55-102, as last amended by Chapter 240, Laws of Utah 1996
58-55-306, as renumbered and amended by Chapter 181, Laws of Utah 1994
58-55-402, as renumbered and amended by Chapter 181, Laws of Utah 1994
58-55-403, as renumbered and amended by Chapter 181, Laws of Utah 1994
58-55-501, as enacted by Chapter 181, Laws of Utah 1994
58-55-503, as last amended by Chapter 10, Laws of Utah 1997
REPEALS:
58-55-309, as renumbered and amended by Chapter 181, Laws of Utah 1994
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 58-55-102 is amended to read:
58-55-102. Definitions.
In addition to the definitions in Section 58-1-102 , as used in this chapter:
(1) "Apprentice electrician" means a person licensed under this chapter as an apprentice
electrician who is learning the electrical trade under approved supervision of a master electrician,
residential master electrician, a journeyman electrician, or a residential journeyman electrician.
(2) "Apprentice plumber" means a person licensed under this chapter as an apprentice
plumber who is learning the plumbing trade under approved supervision of a journeyman plumber.
(3) "Approved supervision" means the immediate supervision of apprentices by qualified
licensed electricians or plumbers as a part of a planned program of training.
(4) "Board" means the Contractors Licensing Board, Electrician Licensing Board, or
Plumbers Licensing Board created in Section 58-55-201 .
(5) "Construction trade" means any trade or occupation involving construction, alteration,
remodeling, repairing, wrecking or demolition, addition to, or improvement of any building, highway,
road, railroad, dam, bridge, structure, excavation or other project, development, or improvement to
other than personal property.
(6) "Construction trades instructor" means a person licensed under this chapter to teach one
or more construction trades in both a classroom and project environment, where a project is intended
for sale to or use by the public and is completed under the direction of an instructor who has no
economic interest in the project.
(7) "Contractor" means any person who for compensation other than wages as an employee
undertakes any work in the construction, plumbing, or electrical trade for which licensure is required
under this chapter and includes:
(a) a person who builds any structure on his own property for the purpose of sale or who
builds any structure intended for public use on his own property;
(b) any person who represents himself to be a contractor by advertising or any other means;
(c) any person engaged as a maintenance person, other than an employee, who regularly
engages in activities set forth under the definition of "construction trade";
(d) any person engaged in any construction trade for which licensure is required under this
chapter; or
(e) a construction manager who performs management and counseling services on a
construction project for a fee.
(8) (a) "Electrical trade" means the performance of any electrical work involved in the
installation, construction, alteration, change, repair, removal, or maintenance of facilities, buildings,
or appendages or appurtenances.
(b) "Electrical trade" does not include:
(i) transporting or handling electrical materials;
(ii) preparing clearance for raceways for wiring; or
(iii) work commonly done by unskilled labor or any installations under the exclusive control
of electrical utilities.
(c) For purposes of Subsection (8)(b):
(i) no more than one unlicensed person may be so employed unless more than five licensed
electricians are employed by the shop; and
(ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio permitted
by this Subsection (8)(c).
(9) "Employee" means an individual as defined by the division by rule giving consideration
to the definition adopted by the Internal Revenue Service and the Department of Workforce Services.
(10) "Engage in a construction trade" means to:
(a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged in a
construction trade; or
(b) use the name "contractor" or "builder" or in any other way lead a reasonable person to
believe one is or will act as a contractor.
(11) "Financial responsibility" means a demonstration of a current and expected future
condition of financial solvency evidencing a reasonable expectation to the division and the board that
an applicant or licensee can successfully engage in business as a contractor without jeopardy to the
public health, safety, and welfare. Financial responsibility may be determined by an evaluation of the
total history concerning the licensee or applicant including past, present, and expected condition and
record of financial solvency and business conduct.
(12) "General building contractor" means a person licensed under this chapter as a general
building contractor qualified by education, training, experience, and knowledge to perform or
superintend construction of structures for the support, shelter, and enclosure of persons, animals,
chattels, or movable property of any kind or any of the components of that construction except
plumbing, electrical, and mechanical, for which the general building contractor shall employ the
services of a contractor licensed in the particular specialty, except that a general building contractor
engaged in the construction of single-family and multifamily residences up to four units may perform
the mechanical and hire a licensed plumber or electrician as an employee. The division may by rule
exclude general building contractors from engaging in the performance of other construction
specialties in which there is represented a substantial risk to the public health, safety, and welfare, and
for which a license is required unless that general building contractor holds a valid license in that
specialty classification.
(13) "General engineering contractor" means a person licensed under this chapter as a general
engineering contractor qualified by education, training, experience, and knowledge to perform
construction of fixed works in any or all of the following: irrigation, drainage, water, power, water
supply, flood control, inland waterways, harbors, railroads, highways, tunnels, airports and runways,
sewers and bridges, refineries, pipelines, chemical and industrial plants requiring specialized
engineering knowledge and skill, piers, and foundations, or any of the components of those works.
However, a general engineering contractor may not perform construction of structures built primarily
for the support, shelter, and enclosure of persons, animals, and chattels.
(14) "Immediate supervision" means reasonable direction, oversight, inspection, and
evaluation of the work of a person, in or out of the immediate presence of the supervising person, so
as to ensure that the end result complies with applicable standards.
(15) "Individual" means a natural person.
(16) "Journeyman electrician" means a person licensed under this chapter as a journeyman
electrician having the qualifications, training, experience, and knowledge to wire, install, and repair
electrical apparatus and equipment for light, heat, power, and other purposes.
(17) "Journeyman plumber" means a person licensed under this chapter as a journeyman
plumber having the qualifications, training, experience, and technical knowledge to engage in the
plumbing trade.
(18) "Master electrician" means a person licensed under this chapter as a master electrician
having the qualifications, training, experience, and knowledge to properly plan, layout, and supervise
the wiring, installation, and repair of electrical apparatus and equipment for light, heat, power, and
other purposes.
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limited liability company, association, or organization of any type.
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the installation, alteration, change, repair, removal, maintenance, or use in buildings or within three
feet beyond the outside walls of buildings of pipes, fixtures, and fittings for delivery of the water
supply, discharge of liquid and water carried waste, or the building drainage system within the walls
of the building. It includes that work pertaining to the water supply, distribution pipes, fixtures, and
fixture traps, the soil, waste and vent pipes, and the building drain and roof drains together with their
devices, appurtenances, and connections where installed within the outside walls of the building.
[
requirements for planned programs of training and electrician apprentice licensing applications, the
shop ratio of apprentice electricians to journeyman or master electricians shall be one journeyman or
master electrician to one apprentice on industrial and commercial work, and one journeyman or
master electrician to three apprentices on residential work. All on-the-job training shall be under
circumstances in which the ratio of apprentices to supervisors is in accordance with a ratio of
one-to-one on nonresidential work and up to three apprentices to one supervisor on residential
projects.
[
chapter as a residential and small commercial contractor qualified by education, training, experience,
and knowledge to perform or superintend the construction of single-family residences, multifamily
residences up to four units, and commercial construction of not more than three stories above ground
and not more than 20,000 square feet, or any of the components of that construction except
plumbing, electrical, and mechanical, for which the residential and small commercial contractor shall
employ the services of a contractor licensed in the particular specialty, except that a residential and
small commercial contractor engaged in the construction of single-family and multifamily residences
up to four units may perform the mechanical work and hire a licensed plumber or electrician as an
employee.
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a residential apprentice plumber who is learning the residential plumbing trade while working on
residential buildings under the approved supervision of a residential journeyman plumber or a
journeyman plumber.
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apprentice plumber and residential journeyman plumber, means a single or multiple family dwelling
of up to four units.
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as a residential journeyman electrician having the qualifications, training, experience, and knowledge
to wire, install, and repair electrical apparatus and equipment for light, heat, power, and other
purposes on buildings using primarily nonmetallic sheath cable.
[
a residential journeyman plumber having the qualifications, training, experience, and knowledge to
engage in the plumbing trade as limited to the plumbing of residential buildings.
[
residential master electrician having the qualifications, training, experience, and knowledge to
properly plan, layout, and supervise the wiring, installation, and repair of electrical apparatus and
equipment for light, heat, power, and other purposes on residential projects.
[
buildings primarily wired with nonmetallic sheathed cable, in accordance with standard rules and
regulations governing this work, including the National Electrical Code, and in which the voltage
does not exceed 250 volts line to line and 125 volts to ground.
[
specialty contractor classification established by rule, who is qualified by education, training,
experience, and knowledge to perform those construction trades and crafts requiring specialized skill
the regulation of which are determined by the division to be in the best interest of the public health,
safety, and welfare. A specialty contractor may perform work in crafts or trades other than those in
which he is licensed if they are incidental to the performance of his licensed craft or trade.
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as may be further defined by rule.
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amount is fixed or ascertained on a time, task, piece, commission, or other basis for calculating the
amount.
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Section 2. Section 58-55-306 is amended to read:
58-55-306. Financial responsibility.
(1) An applicant for licensure as a contractor, and a licensee applying for renewal or
reinstatement of a contractor's license shall demonstrate to the division and the board the applicant's
or licensee's financial responsibility before the issuance of or the renewal [
by:
[
[
(a) (i) completing a questionnaire developed by the division; and
(ii) signing the questionnaire, certifying that the information provided is true and accurate;
or
(b) submitting a bond in an amount and form determined by the division.
(2) The division may audit an applicant's or licensee's demonstration of financial responsibility
on a random basis or upon finding of a reasonable need.
(3) The burden to demonstrate financial responsibility is upon the applicant or licensee.
Section 3. Section 58-55-402 is amended to read:
58-55-402. Investigation of regulated activity.
(1) The division shall be responsible for the investigation of persons and activities in violation
of the provisions of this chapter.
(2) Investigation by the division shall include investigations of:
(a) licensees engaged in unlawful or unprofessional conduct; and
(b) unlicensed persons engaged in the conduct of activity or work regulated under this
chapter and for which a license is required.
(3) The division shall decline to proceed with investigation of the violation of any provisions
of this chapter if the division finds there is no apparent material jeopardy to the public health, safety,
and welfare.
(4) The division shall have no responsibility for the inspection of construction work
performed in the state to determine compliance with applicable codes, or industry and workmanship
standards, except as provided in Subsections 58-1-501 (2)(g), 58-55-502 (2), (3), and (4), and
58-55-501 [
(5) Authorized representatives of the division shall be permitted to enter upon the premises
or site of work regulated under this chapter for the purpose of determining compliance with the
provisions of this chapter.
Section 4. Section 58-55-403 is amended to read:
58-55-403. Minimum time for division action.
[
to determine whether to issue a license under this chapter.
[
[
Section 5. Section 58-55-501 is amended to read:
58-55-501. Unlawful conduct.
Unlawful conduct includes:
(1) engaging in a construction trade, acting as a contractor, or representing oneself to be
engaged in a construction trade or to be acting as a contractor in a construction trade requiring
licensure, unless the person doing any of these is appropriately licensed or exempted from licensure
under this chapter;
(2) acting in a construction trade beyond the scope of the license held;
(3) hiring or employing in any manner an unlicensed person, other than an employee for
wages who is not required to be licensed under this chapter, to engage in a construction trade for
which licensure is required or to act as a contractor or subcontractor in a construction trade requiring
licensure;
(4) applying for or obtaining a building permit either for oneself or another when not licensed
or exempted from licensure as a contractor under this chapter;
(5) issuing a building permit to any person for whom there is no evidence of a current license
or exemption from licensure as a contractor under this chapter;
(6) applying for or obtaining a building permit for the benefit of or on behalf of any other
person who is required to be licensed under this chapter but who is not licensed or is otherwise not
entitled to obtain or receive the benefit of the building permit;
(7) failing to obtain a building permit when required by law or rule;
(8) submitting a bid for any work for which a license is required under this chapter by a
person not licensed or exempted from licensure as a contractor under this chapter;
(9) willfully or deliberately misrepresenting or omitting a material fact in connection with an
application to obtain or renew a license under this chapter;
(10) allowing one's license to be used by another except as provided by statute or rule;
(11) doing business under a name other than the name appearing on the license, except as
permitted by statute or rule;
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journeyman plumber, residential journeyman plumber, journeyman electrician, master electrician, or
residential electrician, failing to directly supervise an apprentice under one's supervision or exceeding
the number of apprentices one is allowed to have under his supervision;
[
funds in payment for a specific project from an owner or any other person, which funds are to pay
for work performed or materials and services furnished for that specific project, and after receiving
the funds to exercise unauthorized control over the funds by failing to pay the full amounts due and
payable to persons who performed work or furnished materials or services within a reasonable period
of time;
[
(a) the building or construction laws of this state or any political subdivision;
(b) the safety and labor laws applicable to a project;
(c) any provision of the health laws applicable to a project;
(d) the workers' compensation insurance laws of the state applicable to a project;
(e) the laws governing withholdings for employee state and federal income taxes,
unemployment taxes, FICA, or other required withholdings; or
(f) reporting, notification, and filing laws of this state or the federal government;
[
established under the authority of the division to govern this chapter; or
[
residences of up to two units when not currently registered or exempt from registration as a qualified
beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act.
Section 6. Section 58-55-503 is amended to read:
58-55-503. Penalty for unlawful conduct -- Citations.
(1) Any person who violates Subsections 58-55-501 (1) [
(2), (3), (9), (10), or (12), or who fails to comply with a citation issued under this section after it is
final, is guilty of a class A misdemeanor. Any person who violates the provisions of Subsection
58-55-501 (8) [
the work. [
(2) Any person who violates the provisions of Subsection 58-55-501 [
an infraction unless the violator did so with the intent to deprive the person to whom money is to be
paid of the money received, in which case the violator is guilty of theft, as classified in Section
76-6-412 .
(3) Grounds for immediate suspension of the licensee's license by the division and the board
include the issuance of a citation for violation of Section 58-55-501 or the failure by a licensee to
make application to, report to, or notify the division with respect to any matter for which application,
notification, or reporting is required under this chapter or rules adopted under this chapter, including
applying to the division for a new license to engage in a new specialty classification or to do business
under a new form of organization or business structure, filing with the division current financial
statements, notifying the division concerning loss of insurance coverage, or change in qualifier.
(4) (a) If upon inspection or investigation, the division concludes that a contractor has
violated the provisions of Subsections 58-55-501 (1), (2), (3), (9), (10), (12), or any rule or order
issued with respect to these subsections, and that disciplinary action is appropriate, the director or
his designee from within the division for each alternative respectively, shall, promptly issue a citation
to the contractor according to this chapter and any pertinent rules, attempt to negotiate a stipulated
settlement, or notify the contractor to appear before an adjudicative proceeding conducted under Title
63, Chapter 46b, Administrative Procedures Act.
(i) Any person who is in violation of the provisions of Subsection 58-55-501 (1), (2), [
(9), (10), or (12), as evidenced by an uncontested citation, a stipulated settlement, or by a finding of
violation in an adjudicative proceeding, may be assessed a fine pursuant to this Subsection (4) and
may, in addition to or in lieu of, be ordered to cease and desist from violating Subsection
58-55-501 (1), (2), [
(ii) Except for a cease and desist order, the licensure sanctions cited in Section 58-55-401
may not be assessed through a citation.
(b) Each citation shall be in writing and describe with particularity the nature of the violation,
including a reference to the provision of the chapter, rule, or order alleged to have been violated. The
citation shall clearly state that the recipient must notify the division in writing within 20 calendar days
of service of the citation if the recipient wishes to contest the citation at a hearing conducted under
Title 63, Chapter 46b, Administrative Procedures Act. The citation shall clearly explain the
consequences of failure to timely contest the citation or to make payment of any fines assessed by the
citation within the time specified in the citation.
[
[
upon any person upon whom a summons may be served in accordance with the Utah Rules of Civil
Procedure and may be made personally or upon his agent by a division investigator or by any person
specially designated by the director or by mail.
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citation was issued fails to request a hearing to contest the citation, the citation becomes the final
order of the division and is not subject to further agency review. The period to contest a citation may
be extended by the division for cause.
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the license of a licensee who fails to comply with a citation after it becomes final.
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final is a ground for denial of license.
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following the occurrence of any violation.
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(i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
(ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000; and
(iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to $2,000
for each day of continued offense.
[
Subsection (4)(i), an offense constitutes a second or subsequent offense if:
(A) the division previously issued a final order determining that a person committed a first
or second offense in violation of Subsection 58-55-501 (1), (2), [
(B) (I) the division initiated an action for a first or second offense;
(II) no final order has been issued by the division in the action initiated under Subsection
(4)[
(III) the division determines during an investigation that occurred after the initiation of the
action under Subsection (4)[
violation of the provisions of Subsection 58-55-501 (1), (2), [
(IV) after determining that the person committed a second or subsequent offense under
Subsection (4)[
Subsection (4)[
(ii) In issuing a final order for a second or subsequent offense under Subsection (4)[
the division shall comply with the requirements of this section.
(5) Any penalty imposed by the director under Subsection (4)[
the Commerce Service Fund. Any penalty which is not paid may be collected by the director by either
referring the matter to a collection agency or bringing an action in the district court of the county in
which the person against whom the penalty is imposed resides or in the county where the office of
the director is located. Any county attorney or the attorney general of the state is to provide legal
assistance and advice to the director in any action to collect the penalty. In any action brought to
enforce the provisions of this section, reasonable attorney's fees and costs shall be awarded.
Section 7. Repealer.
This act repeals:
Section 58-55-309, Monetary limit.
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