H.B. 135 Enrolled

1

UTAH UNIFORM BUILDING STANDARDS ACT
2 AMENDMENTS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Larry B. Wiley
6 Senate Sponsor: Scott D. McCoy
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions of the Utah Uniform Building Standards Act related to
11 unlawful and unprofessional conduct by building inspectors and factory built housing
12 dealers and provides penalties for that conduct, to include the issuing of citations to
13 violators by the Division of Occupational and Professional Licensing.
14 Highlighted Provisions:
15 This bill:
16 . defines unlawful and unprofessional conduct for purposes of the Utah Uniform
17 Building Standards Act, specifically as related to building inspectors and factory
18 built housing set-up contractors;
19 . provides the Division of Occupational and Professional Licensing with authority to
20 issue citations to persons who violate the unlawful conduct provisions of the Utah
21 Uniform Building Standards Act;
22 . provides grounds for the immediate suspension of a licensee's license by the
23 division to include the issuance of a citation for violations of unlawful conduct;
24 . provides that the division may issue cease and desist orders and assess fines for
25 violating the unlawful conduct provisions of the Utah Uniform Building Standards
26 Act; and
27 . provides a procedure for the collection of unpaid fines.
28 Monies Appropriated in this Bill:
29 None

30 Other Special Clauses:
31 None
32 Utah Code Sections Affected:
33 AMENDS:
34 58-56-3, as last amended by Chapter 75, Laws of Utah 2004
35 ENACTS:
36 58-56-9.1, Utah Code Annotated 1953
37 58-56-9.3, Utah Code Annotated 1953
38 58-56-9.5, Utah Code Annotated 1953
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 58-56-3 is amended to read:
42 58-56-3. Definitions.
43 In addition to the definitions in Section 58-1-102 , as used in this chapter:
44 (1) "Building" means a structure used or intended for supporting or sheltering any use
45 or occupancy and any improvements attached to it.
46 (2) "Code(s)" means the following codes, including the standards and specifications
47 contained in them:
48 (a) codes adopted by the commission under Subsection 58-56-4 (2); and
49 (b) codes approved by the commission under Subsection 58-56-4 (4)(a).
50 (3) "Commission" means the Uniform Building Code Commission created under this
51 chapter.
52 (4) "Compliance agency" means:
53 (a) an agency of the state or any of its political subdivisions which issues permits for
54 construction regulated under the codes[, or];
55 (b) any other agency of the state or its political subdivisions specifically empowered to
56 enforce compliance with the codes[.]; or
57 (c) any other state agency which chooses to enforce codes adopted under this chapter

58 by authority given the agency under a title other than Title 58, Occupations and Professions.
59 (5) "Factory built housing" means manufactured homes or mobile homes.
60 (6) (a) "Factory built housing set-up contractor" means an individual licensed by the
61 division to set up or install factory built housing on a temporary or permanent basis.
62 (b) The scope of the work included under the license includes the placement [and] or
63 securing, or both placement and securing, of the factory built housing on a permanent or
64 temporary foundation, securing the units together if required, and connection of the utilities to
65 the factory built housing unit, but does not include site preparation, construction of a
66 permanent foundation, and construction of utility services to the near proximity of the factory
67 built housing unit.
68 (c) If a dealer is not licensed as a factory built housing set-up contractor, that individual
69 must subcontract the connection services to individuals who are licensed by the division to
70 perform those specific functions under Title 58, Chapter 55, Utah Construction Trades
71 Licensing Act.
72 (7) "HUD code" means the National Manufactured Housing Construction and Safety
73 Standards Act, 42 U.S.C. Sec. 5401 et seq.
74 (8) "Local regulator" means each political subdivision of the state which is empowered
75 to engage in the regulation of construction, alteration, remodeling, building, repair, and other
76 activities subject to the codes.
77 (9) (a) "Manufactured home" means a transportable factory built housing unit
78 constructed on or after June 15, 1976, according to the HUD Code, in one or more sections,
79 which[,]:
80 (i) in the traveling mode, is eight body feet or more in width or 40 body feet or more in
81 length, or when erected on site, is 400 or more square feet[,]; and [which]
82 (ii) is built on a permanent chassis and designed to be used as a dwelling with or
83 without a permanent foundation when connected to the required utilities, and includes the
84 plumbing, heating, air-conditioning, and electrical systems.
85 (b) Manufactured homes constructed on or after June 15, 1976, shall be identifiable by

86 the manufacturer's data plate bearing the date the unit was manufactured and a HUD label
87 attached to the exterior of the home certifying the home was manufactured to HUD standards.
88 (10) "Mobile home" means a transportable factory built housing unit built prior to June
89 15, 1976, in accordance with a state mobile home code which existed prior to the HUD Code.
90 (11) "Modular unit" means a structure built from sections which are manufactured in
91 accordance with the construction standards adopted pursuant to Section 58-56-4 and
92 transported to a building site, the purpose of which is for human habitation, occupancy, or use.
93 (12) "Opinion" means a written, nonbinding, and advisory statement issued by the
94 commission concerning an interpretation of the meaning of the codes or the application of the
95 codes in a specific circumstance issued in response to a specific request by a party to the issue.
96 (13) "State regulator" means an agency of the state which is empowered to engage in
97 the regulation of construction, alteration, remodeling, building, repair, and other activities
98 subject to the codes adopted pursuant to this chapter.
99 [(14) "Unlawful conduct" is as defined in Subsection 58-1-501 (1) and includes:]
100 [(a) engaging in the sale of factory built housing without being registered with the
101 division as a dealer, unless the sale is exempt under Section 58-56-16 ; and]
102 [(b) selling factory built housing within the state as a dealer without collecting and
103 remitting to the division the fee required by Section 58-56-17 .]
104 [(15) "Unprofessional conduct" is as defined in Subsection 58-1-501 (2) and includes:]
105 [(a) any nondelivery of goods or services by a registered dealer which constitutes a
106 breach of contract by the dealer;]
107 [(b) the failure of a registered dealer to pay a subcontractor or supplier any amounts to
108 which that subcontractor or supplier is legally entitled; and]
109 [(c) any other activity which is defined as unprofessional conduct by division rule in
110 accordance with the provisions of Title 63, Chapter 46a, Utah Administrative Rulemaking
111 Act.]
112 Section 2. Section 58-56-9.1 is enacted to read:
113 58-56-9.1. Unlawful conduct.

114 Unlawful conduct is as defined in Subsection 58-1-501 (1) and includes:
115 (1) engaging in the sale of factory built housing without being registered with the
116 division as a dealer, unless the sale is exempt under Section 58-56-16 ;
117 (2) selling factory built housing within the state as a dealer without collecting and
118 remitting to the division the fee required by Section 58-56-17 ;
119 (3) acting as a building inspector or representing oneself to be acting as a building
120 inspector, unless licensed or exempted from licensure under this chapter or using the title
121 building inspector or any other description, words, letters, or abbreviation indicating that the
122 person is a building inspector if the person has not been licensed under this chapter;
123 (4) acting as a building inspector beyond the scope of the license held under this
124 chapter; and
125 (5) hiring or employing in any manner an unlicensed person as a building inspector,
126 unless exempted from licensure under this chapter.
127 Section 3. Section 58-56-9.3 is enacted to read:
128 58-56-9.3. Unprofessional conduct.
129 Unprofessional conduct is as defined in Subsection 58-1-501 (2) and includes:
130 (1) knowingly failing to inspect or issue correction notices for code violations which
131 when left uncorrected would constitute a hazard to the public health and safety and knowingly
132 failing to require that correction notices are complied with as a building inspector;
133 (2) the use of alcohol or the illegal use of drugs while performing duties as a building
134 inspector or at any time to the extent that the inspector is physically or mentally impaired and
135 unable to effectively perform the duties of an inspector;
136 (3) gross negligence in the performance of official duties as a building inspector;
137 (4) the personal use of information or knowingly revealing information to unauthorized
138 persons when that information has been obtained by a building inspector as a result of the
139 inspector's employment, work, or position as an inspector;
140 (5) unlawful acts or practices which are clearly unethical under generally recognized
141 standards of conduct of a building inspector;

142 (6) engaging in fraud or knowingly misrepresenting a fact relating to the performance
143 of duties and responsibilities as a building inspector;
144 (7) a building inspector knowingly failing to require that all plans, specifications,
145 drawings, documents, and reports be stamped by architects, professional engineers, or both as
146 established by law;
147 (8) a building inspector knowingly failing to report to the division an act or omission of
148 a licensee under Title 58, Chapter 55, Utah Construction Trades Licensing Act, which when
149 left uncorrected constitutes a hazard to public health and safety;
150 (9) a building inspector knowingly failing to report to the division unlicensed practice
151 persons who are required to be licensed under Title 58, Chapter 55, Utah Construction Trades
152 Licensing Act;
153 (10) a building inspector's approval of work which materially varies from approved
154 documents that have been stamped by an architect, professional engineer, or both unless
155 authorized by the licensed architect, professional engineer, or both;
156 (11) a building inspector failing to produce verification of current licensure and current
157 certifications for the codes adopted under rules of the division upon request of the division, a
158 compliance agency, or a contractor or property owner whose work is being inspected;
159 (12) nondelivery of goods or services by a registered dealer which constitutes a breach
160 of contract by the dealer;
161 (13) the failure of a registered dealer to pay a subcontractor or supplier any amounts to
162 which that subcontractor or supplier is legally entitled; and
163 (14) any other activity which is defined as unprofessional conduct by division rule in
164 accordance with the provisions of Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
165 Section 4. Section 58-56-9.5 is enacted to read:
166 58-56-9.5. Penalty for unlawful conduct -- Citations.
167 (1) A person who violates a provision of Section 58-56-9.1 or who fails to comply with
168 a citation issued under this section after it is final is guilty of a class A misdemeanor.
169 (2) Grounds for immediate suspension of a licensee's license by the division under this

170 chapter include:
171 (a) the issuance of a citation for violation of a provision of Section 58-56-9.1 ; and
172 (b) failure by a licensee to make application to, report to, or notify the division with
173 respect to a matter for which application, notification, or reporting is required under this
174 chapter or rules made under this chapter by the division.
175 (3) (a) If upon inspection or investigation, the division concludes that a person has
176 violated a provision of Section 58-56-9.1 , or a rule or order issued with respect to that section,
177 and that disciplinary action is appropriate, the director or the director's designee from within
178 the division shall:
179 (i) promptly issue a citation to the person according to this chapter and any pertinent
180 rules;
181 (ii) attempt to negotiate a stipulated settlement; or
182 (iii) notify the person to appear before an adjudicative proceeding conducted under
183 Title 63, Chapter 46b, Administrative Procedures Act.
184 (b) (i) A person who violates a provision of Section 58-56-9.1 , as evidenced by an
185 uncontested citation, a stipulated settlement, or by a finding of violation in an adjudicative
186 proceeding, may be assessed a fine under this Subsection (3)(b) and may, in addition to or
187 instead of the fine, be ordered by the division to cease from violating the provision.
188 (ii) Except as otherwise provided in Subsection (2)(a), the division may not assess
189 licensure sanctions referred to in Subsection 58-56-9 (1)(c) through a citation.
190 (c) (i) Each citation shall be in writing and describe with particularity the nature of the
191 violation, including a reference to the provision of the chapter, rule, or order alleged to have
192 been violated.
193 (ii) The citation shall clearly state that the recipient must notify the division in writing
194 within 20 calendar days of service of the citation if the recipient wishes to contest the citation
195 at a hearing conducted under Title 63, Chapter 46b, Administrative Procedures Act.
196 (iii) The citation shall clearly explain the consequences of failure to timely contest the
197 citation or to make payment of any fines assessed by the citation within the time specified in

198 the citation.
199 (d) Each citation issued under this section, or a copy of each citation, may be served
200 upon any person upon whom a summons may be served:
201 (i) in accordance with the Utah Rules of Civil Procedure;
202 (ii) personally or upon the person's agent by a division investigator or by any person
203 specially designated by the director; or
204 (iii) by mail.
205 (e) (i) If within 20 calendar days from the service of a citation, the person to whom the
206 citation was issued fails to request a hearing to contest the citation, the citation becomes the
207 final order of the division and is not subject to further agency review.
208 (ii) The period to contest a citation may be extended by the division for cause.
209 (f) The division may refuse to issue or renew, suspend, revoke, or place on probation
210 the license of a licensee who fails to comply with a citation after it becomes final.
211 (g) The failure of an applicant for licensure to comply with a citation after it becomes
212 final is a ground for denial of a license.
213 (h) No citation may be issued under this section after the expiration of six months
214 following the occurrence of the violation.
215 (i) The director or the director's designee may assess fines for violations of Section
216 58-56-9.1 as follows:
217 (i) for a first offense determined under this Subsection (3), a fine of up to $1,000;
218 (ii) for a second offense, a fine of up to $2,000; and
219 (iii) for any subsequent offense, a fine of up to $2,000 for each day of continued
220 offense.
221 (j) For the purposes of issuing a final order under this section and assessing a fine
222 under Subsection (3)(i), an offense constitutes a second or subsequent offense if:
223 (i) the division previously issued a final order determining that a person committed a
224 first or second offense in violation of a provision of Section 58-56-9.1 ; or
225 (ii) (A) the division initiated an action for a first or second offense;

226 (B) no final order has been issued by the division in the action initiated under
227 Subsection (3)(j)(ii)(A);
228 (C) the division determines during an investigation that occurred after the initiation of
229 the action under Subsection (3)(j)(ii)(A) that the person committed a second or subsequent
230 violation of a provision of Section 58-56-9.1 ; and
231 (D) after determining that the person committed a second or subsequent offense under
232 Subsection (3)(j)(ii)(C), the division issues a final order on the action initiated under
233 Subsection (3)(j)(ii)(A).
234 (k) In issuing a final order for a second or subsequent offense under Subsection (3)(j),
235 the division shall comply with the requirements of this section.
236 (4) (a) Proceeds from a fine imposed under Subsection (3)(i) shall be deposited in the
237 Commerce Service Fund.
238 (b) The director may collect an unpaid fine by:
239 (i) referring the matter to a collection agency; or
240 (ii) bringing an action in the district court of the county in which the person resides or
241 in the county where the director's office is located.
242 (c) (i) The state's attorney general or a county attorney shall provide legal assistance
243 and advice to the director in an action brought under Subsection (4)(b).
244 (ii) Reasonable attorney's fees and costs shall be awarded in an action brought to
245 enforce the provisions of this section.