H.B. 324

1

CONSTRUCTION TRADES - EXEMPTIONS
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Keith Grover
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies the exemptions from licensure provision of the Utah Construction
10 Trades Licensing Act related to the ceiling cost set for exempt building projects.
11 Highlighted Provisions:
12 This bill increases the ceiling on the building cost exemption in the Utah Construction
13 Trades Licensing Act from under $1,000 to under $5,000 on alterations, repairs,
14 additions, remodels, or improvements to a building.
15 Monies Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 AMENDS:
21 58-55-305, as last amended by Chapter 54, Laws of Utah 2005
22
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 58-55-305 is amended to read:
25 58-55-305. Exemptions from licensure.
26 (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
27 persons may engage in acts or practices included within the practice of construction trades,

28 subject to the stated circumstances and limitations, without being licensed under this chapter:
29 (a) an authorized representative of the United States government or an authorized
30 employee of the state or any of its political subdivisions when working on construction work of
31 the state or the subdivision, and when acting within the terms of the person's trust, office, or
32 employment;
33 (b) a person engaged in construction or operation incidental to the construction and
34 repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
35 districts, and drainage districts or construction and repair relating to farming, dairying,
36 agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
37 excavations, well drilling, as defined in Subsection 73-3-24 (3), hauling to and from
38 construction sites, and lumbering;
39 (c) public utilities operating under the rules of the Public Service Commission on
40 construction work incidental to their own business;
41 (d) sole owners of property engaged in building:
42 (i) no more than one residential structure per year and no more than three residential
43 structures per five years on their property for their own noncommercial, nonpublic use; except,
44 a person other than the property owner or individuals described in Subsection (1)(e), who
45 engages in building the structure must be licensed under this chapter if the person is otherwise
46 required to be licensed under this chapter; or
47 (ii) structures on their property for their own noncommercial, nonpublic use which are
48 incidental to a residential structure on the property, including sheds, carports, or detached
49 garages;
50 (e) (i) a person engaged in construction or renovation of a residential building for
51 noncommercial, nonpublic use if that person:
52 (A) works without compensation other than token compensation that is not considered
53 salary or wages; and
54 (B) works under the direction of the property owner who engages in building the
55 structure;
56 (ii) for purposes of this Subsection (1)(e), "token compensation" means compensation
57 paid by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
58 exempted from licensure under this Subsection (1)(e), that is:

59 (A) minimal in value when compared with the fair market value of the services
60 provided by the person;
61 (B) not related to the fair market value of the services provided by the person; and
62 (C) is incidental to providing of services by the person including paying for or
63 providing meals or refreshment while services are being provided, or paying reasonable
64 transportation costs incurred by the person in travel to the site of construction;
65 (f) a person engaged in the sale or merchandising of personal property that by its design
66 or manufacture may be attached, installed, or otherwise affixed to real property who has
67 contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
68 attach that property;
69 (g) a contractor submitting a bid on a federal aid highway project, if, before
70 undertaking construction under that bid, the contractor is licensed under this chapter;
71 (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
72 improvement of a building with a contracted or agreed value of less than [$1,000] $5,000,
73 including both labor and materials, and including all changes or additions to the contracted or
74 agreed upon work;
75 (ii) notwithstanding Subsection (1)(h)(i):
76 (A) work in the plumbing and electrical trades must be performed by a licensed
77 electrician or plumber except as otherwise provided in this section;
78 (B) installation, repair, or replacement of a residential or commercial gas appliance or a
79 combustion system must be performed by a person who has received certification under
80 Subsection 58-55-308 (2) except as otherwise provided in Subsection 58-55-308 (2)(d) or
81 58-55-308 (3); and
82 (C) installation, repair, or replacement of water-based fire protection systems must be
83 performed by a licensed fire suppression systems contractor or a licensed journeyman plumber;
84 (i) a person practicing a specialty contractor classification or construction trade which
85 is not classified by rule by the director as significantly impacting the public's health, safety, and
86 welfare;
87 (j) owners and lessees of property and persons regularly employed for wages by owners
88 or lessees of property or their agents for the purpose of maintaining the property, are exempt
89 from this chapter when doing work upon the property;

90 (k) (i) a person engaged in minor plumbing work incidental to the replacement or
91 repair of a fixture or an appliance in a residential or small commercial building, or structure
92 used for agricultural use, as defined in Section 58-56-4 , provided that no modification is made
93 to:
94 (A) existing culinary water, soil, waste, or vent piping; or
95 (B) a gas appliance or combustion system; and
96 (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
97 an appliance is not included in the exemption provided under Subsection (1)(k)(i);
98 (l) a person who ordinarily would be subject to the plumber licensure requirements
99 under this chapter when installing or repairing a water conditioner or other water treatment
100 apparatus if the conditioner or apparatus:
101 (i) meets the appropriate state construction codes or local plumbing standards; and
102 (ii) is installed or repaired under the direction of a person authorized to do the work
103 under an appropriate specialty contractor license;
104 (m) a person who ordinarily would be subject to the electrician licensure requirements
105 under this chapter when employed by or under contract with:
106 (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
107 contractors or constructors, or street railway systems; or
108 (ii) public service corporations, rural electrification associations, or municipal utilities
109 who generate, distribute, or sell electrical energy for light, heat, or power;
110 (n) a person involved in minor electrical work incidental to a mechanical or service
111 installation;
112 (o) a student participating in construction trade education and training programs
113 approved by the commission with the concurrence of the director under the condition that:
114 (i) all work intended as a part of a finished product on which there would normally be
115 an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
116 building inspector; and
117 (ii) a licensed contractor obtains the necessary building permits; and
118 (p) a delivery person when replacing any of the following existing equipment with a
119 new gas appliance, provided there is an existing gas shutoff valve at the appliance:
120 (i) gas range;

121 (ii) gas dryer;
122 (iii) outdoor gas barbeque; or
123 (iv) outdoor gas patio heater.
124 (2) (a) A compliance agency as defined in Subsection 58-56-3 (4) that issues a building
125 permit to any person requesting a permit as a sole owner of property referred to in Subsection
126 (1)(d) shall notify the division, in writing or through electronic transmission, of the issuance of
127 the permit.
128 (b) The division shall evaluate the effectiveness of the notification requirement under
129 Subsection (2)(a) and report its findings, including any recommendations for modification to or
130 termination of the requirement, to the Legislature's Business and Labor Interim Committee
131 prior to the 2008 General Session.




Legislative Review Note
as of 1-19-07 2:54 PM

Office of Legislative Research and General Counsel