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S.B. 136

             1     

CONSTRUCTION TRADES LICENSING MODIFICATIONS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Peter C. Knudson

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah Construction Trades Licensing Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    modifies construction trade licensing provisions to include heating, ventilation, and
             14      air conditioning technicians;
             15          .    modifies the membership of the Construction Services Commission;
             16          .    modifies the membership of and renames the Plumbers Licensing Board;
             17          .    authorizes the Division of Occupational and Professional Licensing to issue licenses
             18      to various heating, ventilation, and air conditioning technicians;
             19          .    requires that licensed heating, ventilation, and air conditioning technicians complete
             20      fuel and electricity efficiency continuing education;
             21          .    modifies a provision relating to exemptions from licensure; and
             22          .    makes technical changes.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:


             28      AMENDS:
             29          58-55-102, as last amended by Laws of Utah 2012, Chapter 25
             30          58-55-103, as last amended by Laws of Utah 2010, Chapter 286
             31          58-55-201, as last amended by Laws of Utah 2008, Chapter 215
             32          58-55-301, as last amended by Laws of Utah 2010, Chapter 227
             33          58-55-302, as last amended by Laws of Utah 2012, Chapter 192
             34          58-55-302.7, as last amended by Laws of Utah 2011, Chapter 367
             35          58-55-303, as last amended by Laws of Utah 2011, Chapter 367
             36          58-55-305, as last amended by Laws of Utah 2011, Chapter 14
             37          58-55-308, as last amended by Laws of Utah 2008, Chapter 382
             38          58-55-501, as last amended by Laws of Utah 2012, Chapter 278
             39          58-55-503, as last amended by Laws of Utah 2011, Chapters 195, 340, and 413
             40      ENACTS:
             41          58-55-302.3, Utah Code Annotated 1953
             42     
             43      Be it enacted by the Legislature of the state of Utah:
             44          Section 1. Section 58-55-102 is amended to read:
             45           58-55-102. Definitions.
             46          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             47          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
             48      maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
             49      except as provided in Subsection (1)(b).
             50          (b) "Alarm business or company" does not include:
             51          (i) a person engaged in the manufacture and sale of alarm systems when that person is
             52      not engaged in the installation, maintenance, alteration, repair, replacement, servicing, or
             53      monitoring of alarm systems, and the manufacture or sale occurs only at a place of business
             54      established by the person engaged in the manufacture or sale and does not involve site visits at
             55      the place or intended place of installation of an alarm system; or
             56          (ii) an owner of an alarm system, or an employee of the owner of an alarm system, who
             57      is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
             58      of the alarm system owned by that owner.


             59          (2) "Alarm company agent" means any individual employed within this state by a
             60      person engaged in the alarm business.
             61          (3) "Alarm system" means equipment and devices assembled for the purpose of:
             62          (a) detecting and signaling unauthorized intrusion or entry into or onto certain
             63      premises; or
             64          (b) signaling a robbery or attempted robbery on protected premises.
             65          (4) "Apprentice electrician" means a person licensed under this chapter as an
             66      apprentice electrician who is learning the electrical trade under the immediate supervision of a
             67      master electrician, residential master electrician, [a] journeyman electrician, or [a] residential
             68      journeyman electrician.
             69          (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
             70      plumber who is learning the plumbing trade under the immediate supervision of a master
             71      plumber, residential master plumber, journeyman plumber, or [a] residential journeyman
             72      plumber.
             73          (6) "Apprentice residential heating, ventilation, and air conditioning technician" means
             74      an individual licensed under this chapter as an apprentice residential heating, ventilation, and
             75      air conditioning technician who is learning the residential heating, ventilation, and air
             76      conditioning trade under approved supervision of a licensed residential heating, ventilation,
             77      and air conditioning supervisor.
             78          [(6)] (7) "Approved continuing education" means instruction provided through courses
             79      under a program established under Subsection 58-55-302.5 (2).
             80          [(7)] (8) "Board" means, as applicable, the Electrician Licensing Board, the Alarm
             81      System Security and Licensing Board, or the Plumbers and Residential Heating, Ventilation,
             82      and Air Conditioning Technicians Licensing Board created in Section 58-55-201 .
             83          [(8)] (9) "Combustion system" means an assembly consisting of:
             84          (a) piping and components with a means for conveying, either continuously or
             85      intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
             86      appliance;
             87          (b) the electric control and combustion air supply and venting systems, including air
             88      ducts; and
             89          (c) components intended to achieve control of quantity, flow, and pressure.


             90          [(9)] (10) "Commission" means the Construction Services Commission created under
             91      Section 58-55-103 .
             92          [(10)] (11) "Construction trade" means any trade or occupation involving:
             93          (a) (i) construction, alteration, remodeling, [repairing] repair, wrecking or demolition,
             94      addition to[,] or improvement of any building, highway, road, railroad, dam, bridge, structure,
             95      excavation, or other project, development, or improvement to other than personal property; and
             96          (ii) [constructing] construction, remodeling, or [repairing] repair of a manufactured
             97      home or mobile home as defined in Section 15A-1-302 ; or
             98          (b) installation or repair of a residential or commercial natural gas appliance or
             99      combustion system.
             100          [(11)] (12) "Construction trades instructor" means a person licensed under this chapter
             101      to teach one or more construction trades in both a classroom and project environment, where a
             102      project is intended for sale to or use by the public and is completed under the direction of the
             103      instructor, who has no economic interest in the project.
             104          [(12)] (13) (a) "Contractor" means [any] a person who, for compensation other than
             105      wages as an employee, undertakes [any] work in the construction[, plumbing, or electrical]
             106      trade, electrical trade, plumbing trade, or heating, ventilation, and air conditioning trade, for
             107      which licensure is required under this chapter and includes:
             108          (i) a person who builds [any] a structure on the person's own property for the purpose
             109      of sale or who builds [any] a structure intended for public use on the person's own property;
             110          (ii) [any] a person who represents that the person is a contractor by advertising or [any]
             111      other means;
             112          (iii) [any] a person engaged as a maintenance person, other than an employee, who
             113      regularly engages in activities set forth under the definition of "construction trade";
             114          (iv) [any] a person engaged in [any] a construction trade for which licensure is required
             115      under this chapter; or
             116          (v) a construction manager who performs management and counseling services on a
             117      construction project for a fee.
             118          (b) "Contractor" does not include an alarm company or alarm company agent.
             119          [(13)] (14) (a) "Electrical trade" means the performance of [any] electrical work
             120      involved in the installation, construction, alteration, change, repair, removal, or maintenance of


             121      facilities, buildings, or appendages or appurtenances.
             122          (b) "Electrical trade" does not include:
             123          (i) transporting or handling electrical materials;
             124          (ii) preparing clearance for raceways for wiring; or
             125          (iii) work commonly done by unskilled labor on [any] installations under the exclusive
             126      control of electrical utilities.
             127          (c) For purposes of Subsection [(13)] (14)(b):
             128          (i) no more than one unlicensed person may be so employed unless more than five
             129      licensed electricians are employed by the shop; and
             130          (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio
             131      permitted by this Subsection [(13)] (14)(c).
             132          [(14)] (15) "Elevator" has the same meaning as defined in Section 34A-7-202 , except
             133      that for purposes of this chapter it does not mean a stair chair, a vertical platform lift, or an
             134      incline platform lift.
             135          [(15)] (16) "Elevator contractor" means a sole proprietor, firm, or corporation licensed
             136      under this chapter that is engaged in the business of erecting, constructing, installing, altering,
             137      servicing, repairing, or maintaining an elevator.
             138          [(16)] (17) "Elevator mechanic" means an individual who is licensed under this chapter
             139      as an elevator mechanic and who is engaged in erecting, constructing, installing, altering,
             140      servicing, repairing, or maintaining an elevator under the immediate supervision of an elevator
             141      contractor.
             142          [(17)] (18) "Employee" means an individual as defined by the division by rule giving
             143      consideration to the definition adopted by the Internal Revenue Service and the Department of
             144      Workforce Services.
             145          [(18)] (19) "Engage in a construction trade" means to:
             146          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
             147      in a construction trade; or
             148          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
             149      to believe one is or will act as a contractor.
             150          [(19)] (20) (a) "Financial responsibility" means a demonstration of a current and
             151      expected future condition of financial solvency evidencing a reasonable expectation to the


             152      division and the board that an applicant or licensee can successfully engage in business as a
             153      contractor without jeopardy to the public health, safety, and welfare.
             154          (b) Financial responsibility may be determined by an evaluation of the total history
             155      concerning the licensee or applicant including past, present, and expected condition and record
             156      of financial solvency and business conduct.
             157          [(20)] (21) "Gas appliance" means [any] a device that uses natural gas to produce light,
             158      heat, power, steam, hot water, refrigeration, or air conditioning.
             159          [(21)] (22) (a) "General building contractor" means a person licensed under this
             160      chapter as a general building contractor qualified by education, training, experience, and
             161      knowledge to perform or superintend construction of structures for the support, shelter, and
             162      enclosure of persons, animals, chattels, or movable property of any kind or any of the
             163      components of that construction [except].
             164          (b) (i) "General building contractor" does not include plumbing, electrical work,
             165      [mechanical] residential heating, ventilation, and air conditioning system work, work related to
             166      the operating integrity of an elevator, [and] or manufactured housing installation[, for which
             167      the general].
             168          (ii) If the work of a specialty identified under Subsection (22)(b)(i) is needed, a general
             169      building contractor shall employ the services of a contractor licensed in the particular specialty,
             170      except that a general building contractor engaged in the construction of single-family
             171      residences and multifamily residences of up to four units may [perform the mechanical work
             172      and] hire a licensed plumber [or], electrician, or residential heating, ventilation, and air
             173      conditioning technician as an employee.
             174          (b) The division may by rule exclude general building contractors from engaging in the
             175      performance of other construction specialties in which there is represented a substantial risk to
             176      the public health, safety, and welfare, and for which a license is required unless that general
             177      building contractor holds a valid license in that specialty classification.
             178          [(22)] (23) (a) "General engineering contractor" means a person licensed under this
             179      chapter as a general engineering contractor qualified by education, training, experience, and
             180      knowledge to perform construction of fixed works in any of the following: irrigation, drainage,
             181      water, power, water supply, flood control, inland waterways, harbors, railroads, highways,
             182      tunnels, airports and runways, sewers and bridges, refineries, pipelines, chemical and industrial


             183      plants requiring specialized engineering knowledge and skill, piers, and foundations, or any of
             184      the components of those works.
             185          (b) A general engineering contractor may not perform construction of structures built
             186      primarily for the support, shelter, and enclosure of persons, animals, and chattels.
             187          (24) "Heating, ventilation, and air conditioning system":
             188          (a) means a mechanical system for the movement of air within a building for the
             189      purpose of controlling the temperature, humidity, or cleanliness of air; and
             190          (b) does not include any liquid-circulating portion of a system described in Subsection
             191      (24)(a).
             192          (25) "Heating, ventilation, and air conditioning trade" means the performance of
             193      heating, ventilation, and air conditioning work involved in the installation, construction,
             194      alteration, change, repair, removal, or maintenance of heating, ventilation, and air conditioning
             195      systems.
             196          [(23)] (26) "Immediate supervision" means reasonable direction, oversight, inspection,
             197      and evaluation of the work of a person:
             198          (a) as the division specifies in rule;
             199          (b) by, as applicable, a [qualified] licensed electrician [or], plumber, or residential
             200      heating, ventilation, and air conditioning technician;
             201          (c) as part of a planned program of training; and
             202          (d) to ensure that the end result complies with applicable standards.
             203          [(24)] (27) "Individual" means a natural person.
             204          [(25)] (28) "Journeyman electrician" means a person licensed under this chapter as a
             205      journeyman electrician having the qualifications, training, experience, and knowledge to wire,
             206      install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
             207          [(26)] (29) "Journeyman plumber" means a person licensed under this chapter as a
             208      journeyman plumber having the qualifications, training, experience, and technical knowledge
             209      to engage in the plumbing trade.
             210          (30) "Journeyman residential heating, ventilation, and air conditioning technician"
             211      means a person licensed under this chapter as a journeyman residential heating, ventilation, and
             212      air conditioning technician having the qualifications, training, experience, and knowledge to:

             213          (a) install, service, maintain, and repair a residential heating, ventilation, and air


             214      conditioning system; and

             215          (b) supervise the installation, service, maintenance, and repair of a residential heating,
             216      ventilation, and air conditioning system.

             217          (31) "Licensed electrician" means an individual licensed under this chapter as an
             218      apprentice electrician, journeyman electrician, master electrician, residential journeyman
             219      electrician, or residential master electrician.
             220          (32) "Licensed elevator mechanic" means an individual licensed under this chapter as
             221      an elevator mechanic.
             222          (33) "Licensed plumber" means an individual licensed under this chapter as an
             223      apprentice plumber, journeyman plumber, master plumber, residential journeyman plumber, or
             224      residential master plumber.
             225          (34) "Licensed residential heating, ventilation, and air conditioning technician" means
             226      an individual licensed under this chapter as an apprentice, journeyman, or master residential
             227      heating, ventilation, and air conditioning technician.
             228          (35) "Licensed residential heating, ventilation, and air conditioning supervisor" means:
             229          (a) an individual who:
             230          (i) supervises a licensed apprentice residential heating, ventilation, and air conditioning
             231      technician; and

             232          (ii) is a licensed master or journeyman residential heating, ventilation, and air
             233      conditioning technician; or

             234          (b) for supervision that occurs before May 14, 2013, an individual who:
             235          (i) supervises a technician in work involving the installation, construction, alteration,
             236      change, repair, removal, or maintenance of a heating, ventilation, and air conditioning system;
             237      and

             238          (ii) is licensed under this chapter as a specialty contractor in the heating, ventilation,
             239      and air conditioning system trade.

             240          [(27)] (36) "Master electrician" means a person licensed under this chapter as a master
             241      electrician having the qualifications, training, experience, and knowledge to properly plan,
             242      [layout] lay out, and supervise the wiring, installation, and repair of electrical apparatus and
             243      equipment for light, heat, power, and other purposes.
             244          [(28)] (37) "Master plumber" means a person licensed under this chapter as a master


             245      plumber having the qualifications, training, experience, and knowledge to properly plan and
             246      [layout] lay out projects and supervise persons in the plumbing trade.
             247          (38) "Master residential heating, ventilation, and air conditioning technician" means a
             248      person licensed under this chapter as a master residential heating, ventilation, and air
             249      conditioning technician having the qualifications, training, experience, and knowledge to
             250      properly lay out, perform, and supervise the installation, service, maintenance, and repair of a
             251      residential heating, ventilation, and air conditioning system.

             252          [(29)] (39) "Person" means a natural person, sole proprietorship, joint venture,
             253      corporation, limited liability company, association, or organization of any type.
             254          [(30)] (40) (a) "Plumbing trade" means the performance of [any] mechanical work
             255      pertaining to the installation, alteration, change, repair, removal, maintenance, or use in
             256      buildings, or within three feet beyond the outside walls of buildings, of pipes, fixtures, and
             257      fittings for:
             258          (i) delivery of the water supply;
             259          (ii) discharge of liquid and water-carried waste; or
             260          (iii) the building drainage system within the walls of the building.
             261          (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
             262      fixtures and fixture traps, soil, waste and vent pipes, and the building drain and roof drains
             263      together with their devices, appurtenances, and connections where installed within the outside
             264      walls of the building.
             265          [(31)] (41) (a) "Ratio of apprentices" means, for the purpose of determining
             266      compliance with the requirements for planned programs of training and electrician apprentice
             267      licensing applications, the shop ratio of apprentice electricians to journeyman or master
             268      electricians shall be one journeyman or master electrician to one apprentice on industrial and
             269      commercial work, and one journeyman or master electrician to three apprentices on residential
             270      work.
             271          (b) On-the-job training shall be under circumstances in which the ratio of apprentices
             272      to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
             273      three apprentices to one supervisor on residential projects.
             274          [(32)] (42) "Residential and small commercial contractor" means a person licensed
             275      under this chapter as a residential and small commercial contractor qualified by education,


             276      training, experience, and knowledge to perform or superintend the construction of
             277      single-family residences, multifamily residences of up to four units, and commercial
             278      construction of not more than three stories above ground and not more than 20,000 square feet,
             279      or any of the components of that construction except plumbing, electrical work, mechanical
             280      work, and manufactured housing installation, for which the residential and small commercial
             281      contractor shall employ the services of a contractor licensed in the particular specialty, except
             282      that a residential and small commercial contractor engaged in the construction of single-family
             283      residences and multifamily residences of up to four units may perform the mechanical work
             284      and hire a licensed plumber or electrician as an employee.
             285          [(33)] (43) "Residential building[,]" [as it relates to]:
             286          (a) means, for the license [classification] classifications of residential journeyman
             287      plumber and residential master plumber, [means] a single [or multiple family dwelling] family
             288      residence or a multifamily residence of up to four units[.]; and
             289          (b) as used in the definition of "residential heating, ventilation, and air conditioning
             290      system," has the same meaning as the term "building" as defined in the International
             291      Residential Code under the State Construction Code adopted by the Legislature.
             292          (44) "Residential heating, ventilation, and air conditioning system" means a heating,
             293      ventilation, and air conditioning system for a residential building.
             294          (45) "Residential heating, ventilation, and air conditioning trade" means work
             295      involving the installation, construction, alteration, change, repair, removal, or maintenance of a
             296      residential heating, ventilation, and air conditioning system.
             297          [(34)] (46) "Residential journeyman electrician" means a person licensed under this
             298      chapter as a residential journeyman electrician having the qualifications, training, experience,
             299      and knowledge to wire, install, and repair electrical apparatus and equipment for light, heat,
             300      power, and other purposes on buildings using primarily nonmetallic sheath cable.
             301          [(35)] (47) "Residential journeyman plumber" means a person licensed under this
             302      chapter as a residential journeyman plumber having the qualifications, training, experience, and
             303      knowledge to engage in the plumbing trade as limited to the plumbing of residential buildings.
             304          [(36)] (48) "Residential master electrician" means a person licensed under this chapter
             305      as a residential master electrician having the qualifications, training, experience, and
             306      knowledge to properly plan, [layout] lay out, and supervise the wiring, installation, and repair


             307      of electrical apparatus and equipment for light, heat, power, and other purposes on residential
             308      projects.
             309          [(37)] (49) "Residential master plumber" means a person licensed under this chapter as
             310      a residential master plumber having the qualifications, training, experience, and knowledge to
             311      properly plan and [layout] lay out projects and supervise persons in the plumbing trade as
             312      limited to the plumbing of a residential [buildings] building.
             313          [(38)] (50) "Residential project," as it relates to an electrician or electrical contractor,
             314      means buildings primarily wired with nonmetallic sheathed cable, in accordance with standard
             315      rules and regulations governing this work, including the National Electrical Code, and in which
             316      the voltage does not exceed 250 volts line to line and 125 volts to ground.
             317          [(39) (a)] (51) "Specialty contractor" means a person licensed under this chapter under
             318      a specialty contractor classification established by rule, who is qualified by education, training,
             319      experience, and knowledge to perform those construction trades and crafts requiring
             320      specialized skill, the regulation of which are determined by the division to be in the best
             321      interest of the public health, safety, and welfare.
             322          [(b) A specialty contractor may perform work in crafts or trades other than those in
             323      which the specialty contractor is licensed if they are incidental to the performance of the
             324      specialty contractor's licensed craft or trade.]
             325          [(40)] (52) "Unincorporated entity" means an entity that is not:
             326          (a) an individual;
             327          (b) a corporation; or
             328          (c) publicly traded.
             329          [(41)] (53) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
             330          [(42)] (54) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-55-502
             331      and as may be further defined by rule.
             332          [(43)] (55) "Wages" means amounts due to an employee for labor or services whether
             333      the amount is fixed or ascertained on a time, task, piece, commission, or other basis for
             334      calculating the amount.
             335          Section 2. Section 58-55-103 is amended to read:
             336           58-55-103. Construction Services Commission created -- Functions --
             337      Appointment -- Qualifications and terms of members -- Vacancies -- Expenses --


             338      Meetings.
             339          (1) (a) There is created within the division the Construction Services Commission.
             340          (b) The commission shall:
             341          (i) with the concurrence of the director, make reasonable rules under Title 63G,
             342      Chapter 3, Utah Administrative Rulemaking Act, to administer and enforce this chapter which
             343      are consistent with this chapter including:
             344          (A) licensing of various licensees;
             345          (B) determining examination requirements and administration of the examinations, to
             346      include approving and establishing a passing score for applicant examinations;
             347          (C) establishing standards of supervision for students or persons in training to become
             348      qualified to obtain a license in the trade they represent; [and]
             349          (D) establishing standards of conduct for various licensees; and
             350          (E) defining the experience or training considered equivalent to required experience or
             351      training if allowed under this chapter;
             352          (ii) approve or disapprove fees adopted by the division under Section 63J-1-504 ;
             353          (iii) except where the boards conduct them, conduct all administrative hearings not
             354      delegated to an administrative law judge relating to the licensing of [any] an applicant;
             355          (iv) except as otherwise provided in Sections 38-11-207 and 58-55-503 , with the
             356      concurrence of the director, impose sanctions against licensees and certificate holders with the
             357      same authority as the division under Section 58-1-401 ;
             358          (v) advise the director on the administration and enforcement of [any] matters affecting
             359      the division and the construction industry;
             360          (vi) advise the director on matters affecting the division budget;
             361          (vii) advise and assist trade associations in conducting construction trade seminars and
             362      industry education and promotion; and
             363          (viii) perform other duties as provided by this chapter.
             364          [(2) (a) Initially the commission shall be comprised of the five members of the
             365      Contractors Licensing Board and two of the three chair persons from the Plumbers Licensing
             366      Board, the Alarm System Security and Licensing Board, and the Electricians Licensing Board.]
             367          [(b) The terms of office of the commission members who are serving on the
             368      Contractors Licensing Board shall continue as they serve on the commission.]


             369          [(c) Beginning July 1, 2004, the]
             370          (2) The commission shall be comprised of nine members appointed by the executive
             371      director, with the approval of the governor, from the following groups:
             372          [(i)] (a) one member shall be a licensed general engineering contractor;
             373          [(ii)] (b) one member shall be a licensed general building contractor;
             374          [(iii)] (c) two members shall be licensed residential and small commercial contractors;
             375          [(iv)] (d) [three members shall be the three chair persons from] one member shall be
             376      the chair of the Plumbers and Residential Heating, Ventilation, and Air Conditioning
             377      Technicians Licensing Board[,];
             378          (e) one member shall be the chair of the Alarm System Security and Licensing Board[,
             379      and];
             380          (f) one member shall be the chair of the Electricians Licensing Board; and
             381          [(v)] (g) two members shall be from the general public[, provided, however that the
             382      certified public accountant on the Contractors Licensing Board will continue to serve until the
             383      current term expires, after which both members under this Subsection (2)(c)(v) shall be
             384      appointed from the general public].
             385          (3) (a) Except as required by Subsection (3)(b), as terms of current commission
             386      members expire, the executive director, with the approval of the governor, shall appoint each
             387      new member or reappointed member to a four-year term ending June 30.
             388          (b) Notwithstanding the requirements of Subsection (3)(a), the executive director, with
             389      the approval of the governor, shall, at the time of appointment or reappointment, adjust the
             390      length of terms to stagger the terms of commission members so that approximately [1/2]
             391      one-half of the commission members are appointed every two years.
             392          (c) A commission member may not serve more than two consecutive terms.
             393          (4) The commission shall elect annually one of its members as chair, for a term of one
             394      year.
             395          (5) When a vacancy occurs in the membership [for any reason], the replacement shall
             396      be appointed for the unexpired term.
             397          (6) A member may not receive compensation or benefits for the member's service[,]
             398      but may receive per diem and travel expenses in accordance with:
             399          (a) Section 63A-3-106 ;


             400          (b) Section 63A-3-107 ; and
             401          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             402      63A-3-107 .
             403          (7) (a) The commission shall meet at least monthly unless the director determines
             404      otherwise.
             405          (b) The director may call additional meetings at the director's discretion, upon the
             406      request of the chair, or upon the written request of four or more commission members.
             407          (8) (a) Five members constitute a quorum for the transaction of business.
             408          (b) If a quorum is present when a vote is taken, the affirmative vote of commission
             409      members present is the act of the commission.
             410          (9) The commission shall comply with the procedures and requirements of Title 13,
             411      Chapter 1, Department of Commerce, and Title 63G, Chapter 4, Administrative Procedures
             412      Act, in all of its adjudicative proceedings.
             413          Section 3. Section 58-55-201 is amended to read:
             414           58-55-201. Boards created -- Duties.
             415          (1) (a) There is created:
             416          (i) a Plumbers and Residential Heating, Ventilation, and Air Conditioning Technicians
             417      Licensing Board[,];
             418          (ii) an Alarm System Security and Licensing Board[,]; and
             419          (iii) an Electricians Licensing Board.
             420          (b) Members of the boards shall be selected to provide representation as follows:
             421          [(a)] (i) The Plumbers and Residential Heating, Ventilation, and Air Conditioning
             422      Technicians Licensing Board consists of [five] seven members as follows:
             423          [(i)] (A) two members shall be licensed from among the license classifications of
             424      master or journeyman plumber;
             425          [(ii)] (B) [two members] one member shall be a licensed plumbing [contractors]
             426      contractor; [and]
             427          (C) two members shall be licensed from among the license classifications of master or
             428      journeyman residential heating, ventilation, and air conditioning technician;
             429          (D) one member shall be a residential heating, ventilation, and air conditioning
             430      contractor; and


             431          [(iii)] (E) one member shall be from the public at large with no history of involvement
             432      in the construction trades.
             433          [(b) (i)] (ii) (A) The Alarm System Security and Licensing Board consists of five
             434      members as follows:
             435          [(A)] (I) three individuals who are officers or owners of a licensed alarm business;
             436          [(B)] (II) one individual from among nominees of the Utah Peace Officers Association;
             437      and
             438          [(C)] (III) one individual representing the general public.
             439          [(ii)] (B) The Alarm System Security and Licensing Board shall designate one of its
             440      members on a permanent or rotating basis to:
             441          [(A)] (I) assist the division in reviewing complaints concerning the unlawful or
             442      unprofessional conduct of a licensee; and
             443          [(B)] (II) advise the division in its investigation of these complaints.
             444          [(iii)] (C) A board member who has, under this Subsection (1)(b)[(iii)](ii)(C), reviewed
             445      a complaint or advised in [its] the investigation of a complaint is disqualified from
             446      participating with the board when the board serves as a presiding officer in an adjudicative
             447      proceeding concerning the complaint.
             448          [(c)] (iii) The Electricians Licensing Board consists of five members as follows:
             449          [(i)] (A) two members shall be licensed from among the license classifications of
             450      master or journeyman electrician, of whom one shall represent a union organization and one
             451      shall be selected having no union affiliation;
             452          [(ii)] (B) two shall be licensed electrical contractors of whom one shall represent a
             453      union organization and one shall be selected having no union affiliation; and
             454          [(iii)] (C) one member shall be from the public at large with no history of involvement
             455      in the construction trades or union affiliation.
             456          (2) The duties, functions, and responsibilities of each board include the following:
             457          (a) recommending to the commission appropriate rules;
             458          (b) recommending to the commission policy and budgetary matters;
             459          (c) approving and establishing a passing score for applicant examinations;
             460          (d) overseeing the screening of applicants for licensing, renewal, reinstatement, and
             461      relicensure;


             462          (e) assisting the commission in establishing standards of supervision for students or
             463      persons in training to become qualified to obtain a license in the occupation or profession it
             464      represents; and
             465          (f) acting as presiding officer in conducting hearings associated with the adjudicative
             466      proceedings and in issuing recommended orders when so authorized by the commission.
             467          Section 4. Section 58-55-301 is amended to read:
             468           58-55-301. License required -- License classifications.
             469          (1) (a) A person engaged in the construction trades licensed under this chapter, as a
             470      contractor regulated under this chapter, as an alarm business or company, or as an alarm
             471      company agent, shall become licensed under this chapter before engaging in that trade or
             472      contracting activity in this state unless specifically exempted from licensure under Section
             473      58-1-307 or 58-55-305 .
             474          (b) The license issued under this chapter and the business license issued by the local
             475      jurisdiction in which the licensee has its principal place of business shall be the only licenses
             476      required for the licensee to engage in a trade licensed by this chapter[,] within the state.
             477          (c) Neither the state nor [any of] its political subdivisions may require of a licensee
             478      [any] an additional business [licenses, registrations, certifications, contributions, donations,]
             479      license, registration, certification, contribution, donation, or anything else established for the
             480      purpose of qualifying a licensee under this chapter to do business in that local jurisdiction,
             481      except for contract prequalification procedures required by state agencies[,] or the payment of
             482      [any] a fee for the license, registration, or certification established as a condition to do business
             483      in that local jurisdiction.
             484          (2) The division shall issue licenses under this chapter to qualified persons in the
             485      following classifications:
             486          (a) general engineering contractor;
             487          (b) general building contractor;
             488          (c) residential and small commercial contractor;
             489          (d) elevator contractor;
             490          (e) specialty contractor;
             491          (f) master plumber;
             492          (g) residential master plumber;


             493          (h) journeyman plumber;
             494          (i) apprentice plumber;
             495          (j) residential journeyman plumber;
             496          (k) master electrician;
             497          (l) residential master electrician;
             498          (m) journeyman electrician;
             499          (n) residential journeyman electrician;
             500          (o) apprentice electrician;
             501          (p) construction trades instructor:
             502          (i) general engineering classification;
             503          (ii) general building classification;
             504          (iii) electrical classification;
             505          (iv) plumbing classification; and
             506          (v) mechanical classification;
             507          (q) alarm company;
             508          (r) alarm company agent; [and]
             509          (s) elevator mechanic[.];
             510          (t) master residential heating, ventilation, and air conditioning technician;
             511          (u) journeyman residential heating, ventilation, and air conditioning technician; and
             512          (v) apprentice residential heating, ventilation, and air conditioning technician.
             513          (3) (a) An applicant may apply for a license in one or more [classification]
             514      classifications or specialty contractor [subclassification] subclassifications.
             515          (b) A license shall be granted in each classification or subclassification for which the
             516      applicant qualifies.
             517          (c) A separate application and fee must be submitted for each license classification or
             518      subclassification.
             519          Section 5. Section 58-55-302 is amended to read:
             520           58-55-302. Qualifications for licensure.
             521          (1) Each applicant for a license under this chapter shall:
             522          (a) submit an application prescribed by the division;
             523          (b) pay a fee as determined by the department under Section 63J-1-504 ;


             524          (c) (i) meet the examination requirements established by rule by the commission, with
             525      the concurrence of the director, except for the classifications of apprentice plumber [and],
             526      apprentice electrician, and apprentice residential heating, ventilation, and air conditioning
             527      technician, for whom no examination is required; or
             528          (ii) if required in Section 58-55-304 , the individual qualifier must pass the required
             529      examination if the applicant is a business entity;
             530          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
             531          (e) if an applicant for a contractor's license:
             532          (i) produce satisfactory evidence of financial responsibility, except for a construction
             533      trades instructor for whom evidence of financial responsibility is not required;
             534          (ii) produce satisfactory evidence of knowledge and experience in the construction
             535      industry and knowledge of the principles of the conduct of business as a contractor, reasonably
             536      necessary for the protection of the public health, safety, and welfare;
             537          (iii) (A) be a licensed master electrician, if an applicant for an electrical contractor's
             538      license, or be a licensed master residential electrician, if an applicant for a residential electrical
             539      contractor's license;
             540          (B) be a licensed master plumber, if an applicant for a plumbing contractor's license, or
             541      be a licensed [master] residential master plumber, if an applicant for a residential plumbing
             542      contractor's license; [or]
             543          (C) be a licensed master residential heating, ventilation, and air conditioning
             544      technician, if an applicant for a residential heating, ventilation, and air conditioning contractor's
             545      license; or
             546          [(C)] (D) be a licensed elevator mechanic and produce satisfactory evidence of three
             547      years of experience as an elevator mechanic, if an applicant for an elevator contractor's license;
             548      and
             549          (iv) [when] if the applicant is an unincorporated entity, provide a list of the one or
             550      more individuals who hold an ownership interest in the applicant as of the day on which the
             551      application is filed that includes for each individual:
             552          (A) the individual's name, address, birthdate, and Social Security number; and
             553          (B) whether the individual will engage in a construction trade; and
             554          (f) if an applicant for a construction trades instructor license, satisfy any additional


             555      requirements established by rule.
             556          (2) After approval of an applicant for a contractor's license by the applicable board and
             557      the division, the applicant shall file the following with the division before the division issues
             558      the license:
             559          (a) proof of workers' compensation insurance [which] that covers employees of the
             560      applicant in accordance with applicable Utah law;
             561          (b) proof of public liability insurance in coverage amounts and form established by
             562      rule, except for a construction trades instructor for whom public liability insurance is not
             563      required; and
             564          (c) proof of registration as required by applicable law with the:
             565          (i) Utah Department of Commerce;
             566          (ii) Division of Corporations and Commercial Code;
             567          (iii) Unemployment Insurance Division in the Department of Workforce Services, for
             568      purposes of Title 35A, Chapter 4, Employment Security Act;
             569          (iv) State Tax Commission; and
             570          (v) Internal Revenue Service.
             571          (3) In addition to the general requirements for each applicant in Subsection (1),
             572      applicants shall comply with the following requirements to be licensed in the following
             573      classifications:
             574          (a) (i) A master plumber shall produce satisfactory evidence that the applicant:
             575          (A) has been a licensed journeyman plumber for at least two years and [had] has two
             576      years of supervisory experience as a licensed journeyman plumber in accordance with division
             577      rule;
             578          (B) has received at least an associate of applied science degree or similar degree
             579      following the completion of a course of study approved by the division and [had] has one year
             580      of supervisory experience as a licensed journeyman plumber in accordance with division rule;
             581      or
             582          (C) meets the qualifications determined by the division in collaboration with the board
             583      to be equivalent to Subsection (3)(a)(i)(A) or (B).
             584          (ii) An individual holding a valid Utah license as a journeyman plumber, in effect
             585      immediately prior to May 5, 2008, based on at least four years of practical experience as a


             586      licensed apprentice under the supervision of a licensed journeyman plumber and four years as a
             587      licensed journeyman plumber, [in effect immediately prior to May 5, 2008,] is on and after
             588      May 5, 2008, considered to hold a current master plumber license under this chapter, and
             589      satisfies the requirements of this Subsection (3)(a) for the purpose of renewal or reinstatement
             590      of that license under Section 58-55-303 .
             591          (iii) An individual holding a valid plumbing contractor's license or residential
             592      plumbing contractor's license, in effect immediately prior to May 5, 2008, is on or after May 5,
             593      2008:
             594          (A) considered to hold a current master plumber license under this chapter if licensed
             595      as a plumbing contractor and a journeyman plumber, and satisfies the requirements of this
             596      Subsection (3)(a) for purposes of renewal or reinstatement of that license under Section
             597      58-55-303 ; and
             598          (B) considered to hold a current residential master plumber license under this chapter if
             599      licensed as a residential plumbing contractor and a residential journeyman plumber, and
             600      satisfies the requirements of this Subsection (3)(a) for purposes of renewal or reinstatement of
             601      that license under Section 58-55-303 .
             602          (b) A master residential plumber applicant shall produce satisfactory evidence that the
             603      applicant:
             604          (i) has been a licensed residential journeyman plumber for at least two years and [had]
             605      has two years of supervisory experience as a licensed residential journeyman plumber in
             606      accordance with division rule; or
             607          (ii) meets the qualifications determined by the division in collaboration with the board
             608      to be equivalent to Subsection (3)(b)(i).
             609          (c) A journeyman plumber applicant shall produce satisfactory evidence of:
             610          (i) successful completion of the equivalent of at least four years of full-time training
             611      and instruction as a licensed apprentice plumber under supervision of a licensed master
             612      plumber or journeyman plumber and in accordance with a planned program of training
             613      approved by the division;
             614          (ii) at least eight years of full-time experience approved by the division in collaboration
             615      with the Plumbers Licensing Board; or
             616          (iii) satisfactory evidence of meeting the qualifications determined by the board to be


             617      equivalent to Subsection (3)(c)(i) or (c)(ii).
             618          (d) A residential journeyman plumber shall produce satisfactory evidence of:
             619          (i) [completion of] completing the equivalent of at least three years of full-time training
             620      and instruction as a licensed apprentice plumber under the supervision of a licensed residential
             621      master plumber, licensed residential journeyman plumber, or licensed journeyman plumber in
             622      accordance with a planned program of training approved by the division;
             623          (ii) [completion of] completing at least six years of full-time experience in a
             624      maintenance or repair trade involving substantial plumbing work; or
             625          (iii) meeting the qualifications determined by the board to be equivalent to Subsection
             626      (3)(d)(i) or (d)(ii).
             627          (e) The conduct of licensed apprentice plumbers and their licensed supervisors shall be
             628      in accordance with the following:
             629          (i) while engaging in the trade of plumbing, a licensed apprentice plumber shall be
             630      under the immediate supervision of a licensed master plumber, licensed residential master
             631      plumber, licensed journeyman plumber, or a licensed residential journeyman plumber; and
             632          (ii) a licensed apprentice plumber in the fourth through tenth year of training may work
             633      without supervision for a period not to exceed eight hours in any 24-hour period, but if the
             634      apprentice does not become a licensed journeyman plumber or licensed residential journeyman
             635      plumber by the end of the tenth year of apprenticeship, this nonsupervision provision no longer
             636      applies.
             637          (f) A master electrician applicant shall produce satisfactory evidence that the applicant:
             638          (i) is a graduate electrical engineer of an accredited college or university approved by
             639      the division and has one year of practical electrical experience as a licensed apprentice
             640      electrician;
             641          (ii) is a graduate of an electrical trade school, having received an associate of applied
             642      sciences degree following successful completion of a course of study approved by the division,
             643      and has two years of practical experience as a licensed journeyman electrician;
             644          (iii) has four years of practical experience as a journeyman electrician; or
             645          (iv) meets the qualifications determined by the board to be equivalent to Subsection
             646      (3)(f)(i), (ii), or (iii).
             647          (g) A [master] residential master electrician applicant shall produce satisfactory


             648      evidence that the applicant:
             649          (i) has at least two years of practical experience as a residential journeyman electrician;
             650      or
             651          (ii) meets the qualifications determined by the board to be equivalent to this practical
             652      experience.
             653          (h) A journeyman electrician applicant shall produce satisfactory evidence that the
             654      applicant:
             655          (i) has successfully completed at least four years of full-time training and instruction as
             656      a licensed apprentice electrician under the supervision of a master electrician or journeyman
             657      electrician and in accordance with a planned training program approved by the division;
             658          (ii) has at least eight years of full-time experience approved by the division in
             659      collaboration with the Electricians Licensing Board; or
             660          (iii) meets the qualifications determined by the board to be equivalent to Subsection
             661      (3)(h)(i) or (ii).
             662          (i) A residential journeyman electrician applicant shall produce satisfactory evidence
             663      that the applicant:
             664          (i) has successfully completed two years of training in an electrical training program
             665      approved by the division;
             666          (ii) has four years of practical experience in wiring, installing, and repairing electrical
             667      apparatus and equipment for light, heat, and power under the supervision of a licensed master,
             668      journeyman, residential master, or residential journeyman electrician; or
             669          (iii) meets the qualifications determined by the division and applicable board to be
             670      equivalent to Subsection (3)(i)(i) or (ii).
             671          (j) The conduct of licensed apprentice electricians and their licensed supervisors shall
             672      be in accordance with the following:
             673          (i) A licensed apprentice electrician shall be under the immediate supervision of a
             674      licensed master, journeyman, residential master, or residential journeyman electrician. An
             675      apprentice in the fourth year of training may work without supervision for a period not to
             676      exceed eight hours in any 24-hour period.
             677          (ii) A licensed master, journeyman, residential master, or residential journeyman
             678      electrician may have under immediate supervision on a residential project up to three licensed


             679      apprentice electricians.
             680          (iii) A licensed master or journeyman electrician may have under immediate
             681      supervision on nonresidential projects only one licensed apprentice electrician.
             682          (k) An applicant for master residential heating, ventilation, and air conditioning
             683      technician shall:
             684          (i) (A) produce satisfactory evidence that the applicant has at least two years of
             685      full-time experience as a journeyman residential heating, ventilation, and air conditioning
             686      technician, or its equivalent; and
             687          (B) pass a competency test approved by the division; or
             688          (ii) produce satisfactory evidence that the applicant has at least six years of full-time
             689      experience in the heating, ventilation, and air conditioning trade, or its equivalent, at least two
             690      years of which are during a time that the applicant is certified by North American Technicians
             691      Excellence.
             692          (l) An applicant for journeyman residential heating, ventilation, and air conditioning
             693      technician shall:
             694          (i) produce satisfactory evidence that the applicant has:
             695          (A) at least two years full-time experience in the residential heating, ventilation, and air
             696      conditioning trade under the supervision of a licensed residential heating, ventilation, and air
             697      conditioning supervisor, or equivalent experience, and at least two years formal training or
             698      equivalent training, which experience and training may be concurrent; or
             699          (B) at least four years full-time experience in the residential heating, ventilation, and
             700      air conditioning trade under the supervision of a licensed residential heating, ventilation, and
             701      air conditioning supervisor, or equivalent experience; and
             702          (ii) pass a competency test approved by the division.
             703          (m) A licensed apprentice residential heating, ventilation, and air conditioning
             704      technician shall be under the immediate supervision of a licensed residential heating,
             705      ventilation, and air conditioning supervisor.
             706          [(k)] (n) An alarm company applicant shall:
             707          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
             708      the applicant who:
             709          (A) demonstrates 6,000 hours of experience in the alarm company business;


             710          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
             711      company business or in a construction business; and
             712          (C) passes an examination component established by rule by the commission with the
             713      concurrence of the director;
             714          (ii) if a corporation, provide:
             715          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             716      of all corporate officers, directors, and those responsible management personnel employed
             717      within the state or having direct responsibility for managing operations of the applicant within
             718      the state; and
             719          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             720      of all shareholders owning 5% or more of the outstanding shares of the corporation, except this
             721      shall not be required if the stock is publicly listed and traded;
             722          (iii) if a limited liability company, provide:
             723          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             724      of all company officers[,] and those responsible management personnel employed within the
             725      state or having direct responsibility for managing operations of the applicant within the state;
             726      and
             727          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             728      of all individuals owning 5% or more of the equity of the company;
             729          (iv) if a partnership, provide the names, addresses, dates of birth, Social Security
             730      numbers, and fingerprint cards of all general partners[,] and those responsible management
             731      personnel employed within the state or having direct responsibility for managing operations of
             732      the applicant within the state;
             733          (v) if a proprietorship, provide the names, addresses, dates of birth, Social Security
             734      numbers, and fingerprint cards of the proprietor[,] and those responsible management
             735      personnel employed within the state or having direct responsibility for managing operations of
             736      the applicant within the state;
             737          (vi) if a trust, provide the names, addresses, dates of birth, Social Security numbers,
             738      and fingerprint cards of the trustee[,] and those responsible management personnel employed
             739      within the state or having direct responsibility for managing operations of the applicant within
             740      the state;


             741          (vii) be of good moral character in that officers, directors, shareholders described in
             742      Subsection [(3)(k)](n)(ii)(B), partners, proprietors, trustees, and responsible management
             743      personnel have not been convicted of a felony, a misdemeanor involving moral turpitude, or
             744      [any] other crime that when considered with the duties and responsibilities of an alarm
             745      company is considered by the board to indicate that the best interests of the public are served
             746      by granting the applicant a license;
             747          (viii) document that none of the applicant's officers, directors, shareholders described
             748      in Subsection [(3)(k)](n)(ii)(B), partners, proprietors, trustees, and responsible management
             749      personnel have been declared by [any] a court of competent jurisdiction incompetent by reason
             750      of mental defect or disease and not been restored;
             751          (ix) document that none of the applicant's officers, directors, shareholders described in
             752      Subsection (3)[(k)](n)(ii)(B), partners, proprietors, and responsible management personnel are
             753      currently suffering from habitual drunkenness or from drug addiction or dependence;
             754          (x) file and maintain with the division evidence of:
             755          (A) comprehensive general liability insurance in form and in amounts to be established
             756      by rule by the commission with the concurrence of the director;
             757          (B) workers' compensation insurance that covers employees of the applicant in
             758      accordance with applicable Utah law; and
             759          (C) registration as is required by applicable law with the:
             760          (I) Division of Corporations and Commercial Code;
             761          (II) Unemployment Insurance Division in the Department of Workforce Services, for
             762      purposes of Title 35A, Chapter 4, Employment Security Act;
             763          (III) State Tax Commission; and
             764          (IV) Internal Revenue Service; and
             765          (xi) meet with the division and board.
             766          [(l)] (o) Each applicant for licensure as an alarm company agent shall:
             767          (i) submit an application in a form prescribed by the division accompanied by
             768      fingerprint cards;
             769          (ii) pay a fee determined by the department under Section 63J-1-504 ;
             770          (iii) be of good moral character in that the applicant has not been convicted of a felony,
             771      a misdemeanor involving moral turpitude, or [any] other crime that when considered with the


             772      duties and responsibilities of an alarm company agent is considered by the board to indicate
             773      that the best interests of the public are served by granting the applicant a license;
             774          (iv) not have been declared by [any] a court of competent jurisdiction incompetent by
             775      reason of mental defect or disease and not been restored;
             776          (v) not be currently suffering from habitual drunkenness or from drug addiction or
             777      dependence; and
             778          (vi) meet with the division and board if requested by the division or the board.
             779          [(m)] (p) (i) Each applicant for licensure as an elevator mechanic shall:
             780          (A) provide documentation of experience and education credits of not less than three
             781      years of work experience [in the elevator industry,] in elevator construction, maintenance, or
             782      service and repair; and
             783          (B) satisfactorily complete a written examination administered by the division
             784      established by rule under Section 58-1-203 ; or
             785          (C) provide certificates of completion of an apprenticeship program for elevator
             786      mechanics, having standards substantially equal to those of this chapter and registered with the
             787      United States Department of Labor Bureau Apprenticeship and Training or a state
             788      apprenticeship council.
             789          (ii) (A) If an elevator contractor licensed under this chapter cannot find a licensed
             790      elevator mechanic to perform the work of erecting, constructing, installing, altering, servicing,
             791      repairing, or maintaining an elevator, the contractor may:
             792          (I) notify the division of the unavailability of licensed personnel; and
             793          (II) request the division issue a temporary elevator mechanic license to an individual
             794      certified by the contractor as having an acceptable combination of documented experience and
             795      education to perform the work described in this Subsection (3)[(m)](p)(ii)(A).
             796          (B) (I) The division may issue a temporary elevator mechanic license to an individual
             797      certified under Subsection (3)[(m)](p)(ii)(A)(II) upon application by the individual,
             798      accompanied by the appropriate fee as determined by the department under Section 63J-1-504 .
             799          (II) The division shall specify the time period for which the license is valid and may
             800      renew the license for an additional time period upon its determination that a shortage of
             801      licensed elevator mechanics continues to exist.
             802          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             803      division may make rules establishing when Federal Bureau of Investigation records shall be
             804      checked for applicants as an alarm company or alarm company agent.
             805          (5) To determine if an applicant meets the qualifications of Subsections (3)[(k)](n)(vii)
             806      and (3)[(l)](o)(iii), the division shall provide an appropriate number of copies of fingerprint
             807      cards to the Department of Public Safety with the division's request to:
             808          (a) conduct a search of records of the Department of Public Safety for criminal history
             809      information relating to each applicant for licensure as an alarm company or alarm company
             810      agent and each applicant's officers, directors, shareholders described in Subsection
             811      (3)[(k)](n)(ii)(B), partners, proprietors, and responsible management personnel; and
             812          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
             813      requiring a check of records of the Federal Bureau of Investigation for criminal history
             814      information under this section.
             815          (6) The Department of Public Safety shall send to the division:
             816          (a) a written record of criminal history, or certification of no criminal history record, as
             817      contained in the records of the Department of Public Safety, in a timely manner, after receipt of
             818      a fingerprint card from the division and a request for review of Department of Public Safety
             819      records; and
             820          (b) the results of the Federal Bureau of Investigation review concerning an applicant, in
             821      a timely manner, after receipt of information from the Federal Bureau of Investigation.
             822          (7) (a) The division shall charge each applicant for licensure as an alarm company or
             823      alarm company agent a fee, in accordance with Section 63J-1-504 , equal to the cost of
             824      performing the records reviews under this section.
             825          (b) The division shall pay the Department of Public Safety the costs of all records
             826      reviews, and the Department of Public Safety shall pay the Federal Bureau of Investigation the
             827      costs of records reviews under this section.
             828          (8) Information obtained by the division from the reviews of criminal history records of
             829      the Department of Public Safety and the Federal Bureau of Investigation [shall] under
             830      Subsections (5) through (7) may only be used or disseminated by the division [only] for the
             831      purpose of determining if an applicant for licensure as an alarm company or alarm company
             832      agent is qualified for licensure.
             833          (9) (a) An application for licensure under this chapter shall be denied if:


             834          (i) the applicant has had a previous license, which was issued under this chapter,
             835      suspended or revoked within one year prior to the date of the applicant's application;
             836          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             837          (B) [any] a corporate officer, director, shareholder holding 25% or more of the stock in
             838      the applicant, partner, member, agent acting as a qualifier, or [any] a person occupying a
             839      similar status, performing similar functions, or directly or indirectly controlling the applicant
             840      has served in [any] a similar capacity with [any] a person or entity [which] that has had a
             841      previous license, which was issued under this chapter, suspended or revoked within one year
             842      prior to the date of the applicant's application; or
             843          (iii) (A) the applicant is an individual or sole proprietorship; and
             844          (B) [any] an owner or agent acting as a qualifier has served in [any] a capacity listed in
             845      Subsection (9)(a)(ii)(B) in [any] an entity [which] that has had a previous license, which was
             846      issued under this chapter, suspended or revoked within one year prior to the date of the
             847      applicant's application.
             848          (b) An application for licensure under this chapter shall be reviewed by the appropriate
             849      licensing board prior to approval if:
             850          (i) the applicant has had a previous license, which was issued under this chapter,
             851      suspended or revoked more than one year prior to the date of the applicant's application;
             852          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             853          (B) [any] a corporate officer, director, shareholder holding 25% or more of the stock in
             854      the applicant, partner, member, agent acting as a qualifier, or [any] a person occupying a
             855      similar status, performing similar functions, or directly or indirectly controlling the applicant
             856      has served in [any] a similar capacity with [any] a person or entity [which] that has had a
             857      previous license, which was issued under this chapter, suspended or revoked more than one
             858      year prior to the date of the applicant's application; or
             859          (iii) (A) the applicant is an individual or sole proprietorship; and
             860          (B) [any] an owner or agent acting as a qualifier has served in [any] a capacity listed in
             861      Subsection (9)(b)(ii)(B) in [any] an entity [which] that has had a previous license, which was
             862      issued under this chapter, suspended or revoked more than one year prior to the date of the
             863      applicant's application.
             864          (10) (a) (i) A licensee that is an unincorporated entity shall file an ownership status


             865      report with the division every 90 days after the day on which the license is issued if the licensee
             866      has more than five owners who:
             867          (A) are individuals [who:];
             868          [(A)] (B) own an interest in the contractor that is an unincorporated entity;
             869          [(B)] (C) own, directly or indirectly, less than an 8% interest in the unincorporated
             870      entity, as defined by rule made by the division in accordance with Title 63G, Chapter 3, Utah
             871      Administrative Rulemaking Act; and
             872          [(C)] (D) engage, or will engage, in a construction trade in Utah as an owner of the
             873      contractor described in Subsection (10)(a)(i)(A).
             874          (ii) If the licensee has five or fewer owners described in Subsection (10)(a)(i), the
             875      licensee shall provide the ownership status report with an application for renewal of licensure.
             876          (b) An ownership status report required under this Subsection (10) shall:
             877          (i) list each addition or deletion of an owner:
             878          (A) for the first ownership status report, after the day on which the unincorporated
             879      entity is licensed under this chapter; and
             880          (B) for a subsequent ownership status report, after the day on which the previous
             881      ownership status report is filed;
             882          (ii) be in a format prescribed by the division that includes the items on the list provided
             883      under Subsection(1)(e)(iv); and
             884          (iii) be accompanied by a fee set by the division in accordance with Section 63J-1-504 ,
             885      if the ownership status report indicates there is a change described in Subsection (10)(b)(i).
             886          (c) The division may, at any time, audit an ownership status report under this
             887      Subsection (10):
             888          (i) to determine if financial responsibility has been demonstrated or maintained as
             889      required under Section 58-55-306 ; and
             890          (ii) to determine compliance with Subsection 58-55-501 (24) or (25) or Subsection
             891      58-55-502 (8) or (9).
             892          (11) (a) An unincorporated entity that provides labor to an entity licensed under this
             893      chapter by providing an individual who owns an interest in the unincorporated entity to engage
             894      in a construction trade in Utah shall file with the division:
             895          (i) before the individual who owns an interest in the unincorporated entity engages in a


             896      construction trade in Utah, a current list of the one or more individuals who hold an ownership
             897      interest in the unincorporated entity that includes for each individual:
             898          (A) the individual's name, address, birthdate, and Social Security number; and
             899          (B) whether the individual will engage in a construction trade; and
             900          (ii) every 90 days after the day on which the unincorporated entity provides the list
             901      described in Subsection (11)(a)(i), an ownership status report containing the information that
             902      would be required under Subsection (10) if the unincorporated entity were a licensed
             903      contractor.
             904          (b) When filing an ownership list described in Subsection (11)(a)(i) or an ownership
             905      status report described in Subsection (11)(a)(ii) an unincorporated entity shall pay a fee set by
             906      the division in accordance with Section 63J-1-504 .
             907          (12) This chapter may not be interpreted to create or support an express or implied
             908      independent contractor relationship between an unincorporated entity described in Subsection
             909      (10) or (11) and the owners of the unincorporated entity for any purpose, including income tax
             910      withholding.
             911          (13) A Social Security number provided under Subsection (1)(e)(iv) is a private record
             912      under Subsection 63G-2-302 (1)(h).
             913          Section 6. Section 58-55-302.3 is enacted to read:
             914          58-55-302.3. Transition provisions for residential heating, ventilation, and air
             915      conditioning contractors and technicians.
             916          (1) (a) Notwithstanding Section 58-55-302 , a person who, on May 14, 2013, holds a
             917      valid specialty contractor license issued by the division for the heating, ventilation, and air
             918      conditioning system trade is granted a license as a residential heating, ventilation, and air
             919      conditioning contractor.
             920          (b) The division shall issue a residential heating, ventilation, and air conditioning
             921      contractor license to each person described in Subsection (1)(a).
             922          (2) (a) Notwithstanding Subsection 58-55-302 (3)(k), an individual who, on May 14,
             923      2013, qualifies under Section 58-55-304 for a business entity licensee holding a valid specialty
             924      contractor's license for the heating, ventilation, and air conditioning system trade is granted
             925      status as a master residential heating, ventilation, and air conditioning technician.
             926          (b) The division shall issue a master residential heating, ventilation, and air


             927      conditioning technician license to each individual described in Subsection (2)(a).
             928          (c) Notwithstanding Subsection 58-55-302 (3)(k), for a master residential heating,
             929      ventilation, and air conditioning technician license issued before January 1, 2015, except for a
             930      license issued under Subsection (2)(b), an applicant shall:
             931          (i) produce satisfactory evidence of having completed at least six years of full-time
             932      experience in the heating, ventilation, and air conditioning trade, or its equivalent as defined by
             933      division by rule; and
             934          (ii) pass a competency test established by the division.
             935          (3) Notwithstanding Subsection 58-55-302 (3)(l), for a journeyman residential heating,
             936      ventilation, and air conditioning technician license issued before January 1, 2015, an applicant
             937      shall produce satisfactory evidence of having completed at least four years of full-time
             938      experience in the heating, ventilation, and air conditioning trade, or its equivalent as defined by
             939      division rule.
             940          Section 7. Section 58-55-302.7 is amended to read:
             941           58-55-302.7. Continuing education requirements for electricians, elevator
             942      mechanics, plumbers, and apprentice, journeyman, or master residential heating,
             943      ventilation, and air conditioning technicians.
             944          [(1) As used in this section:]
             945          [(a) "Licensed electrician" means an individual licensed under this chapter as an
             946      apprentice electrician, journeyman electrician, master electrician, residential journeyman
             947      electrician, or residential master electrician.]
             948          [(b) "Licensed elevator mechanic" means an individual licensed under this chapter as
             949      an elevator mechanic.]
             950          [(c) "Licensed plumber" means an individual licensed under this chapter as an
             951      apprentice plumber, journeyman plumber, master plumber, residential journeyman plumber, or
             952      residential master plumber.]
             953          [(2)] (1) [Beginning December 1, 2010, during] During each two-year renewal cycle
             954      established by rule under Subsection 58-55-303 (1):
             955          (a) a licensed electrician shall complete 16 hours of continuing education under the
             956      continuing education program established under this section;
             957          (b) a licensed plumber shall complete 12 hours of continuing education under the


             958      continuing education program established under this section; [and]
             959          (c) a licensed elevator mechanic shall complete eight hours of continuing education
             960      under the continuing education program established under this section[.]; and
             961          (d) a licensed residential heating, ventilation, and air conditioning technician shall
             962      complete 12 hours of continuing education related to heating, ventilation, and air conditioning
             963      fuel and energy efficiency.
             964          [(3)] (2) The commission shall, with the concurrence of the division, establish by rule:
             965          (a) a continuing education program for licensed electricians;
             966          (b) a continuing education program for licensed elevator mechanics; [and]
             967          (c) a continuing education program for licensed plumbers[.]; and
             968          (d) a continuing education program for licensed residential heating, ventilation, and air
             969      conditioning technicians.
             970          [(4)] (3) The division may contract with a person to establish and maintain a
             971      continuing education registry to include:
             972          (a) an online application for a continuing education course provider to apply to the
             973      division for approval of the course for inclusion in the continuing education program;
             974          (b) a list of courses that the division has approved for inclusion in the continuing
             975      education program; and
             976          (c) a list of courses that:
             977          (i) a licensed electrician, licensed elevator mechanic, [or] licensed plumber, or licensed
             978      residential heating, ventilation, and air conditioning technician has completed under the
             979      continuing education program; and
             980          (ii) the licensed electrician, licensed elevator mechanic, [or] licensed plumber, or
             981      licensed residential heating, ventilation, and air conditioning technician may access to monitor
             982      compliance with the continuing education requirement under Subsection [(2)] (1).
             983          [(5)] (4) The division may charge a fee, established by the division under Section
             984      63J-1-504 , to administer the requirements of this section.
             985          Section 8. Section 58-55-303 is amended to read:
             986           58-55-303. Term of license -- Expiration -- Renewal.
             987          (1) (a) Each license issued under this chapter shall be issued in accordance with a
             988      two-year renewal cycle established by rule.


             989          (b) The division may by rule extend or shorten a renewal period by as much as one year
             990      to stagger the renewal cycle it administers.
             991          (2) At the time of renewal, the licensee shall show satisfactory evidence of:
             992          (a) continuing financial responsibility as required under Section 58-55-306 ;
             993          (b) for a contractor licensee, completion of six hours of approved continuing education,
             994      as required in Section 58-55-302.5 ; [and]
             995          (c) if the licensee is an apprentice electrician or plumber, journeyman electrician or
             996      plumber, master electrician or plumber, residential journeyman electrician or plumber, or
             997      residential master electrician or plumber, completion of the number of hours of continuing
             998      education specified under Section 58-55-302.7 [.]; and
             999          (d) for a residential heating, ventilation, and air conditioning technician licensee,
             1000      having completed, during the two-year license renewal cycle, 12 hours of continuing education,
             1001      approved by the division and the board, related to heating, ventilation, and air conditioning fuel
             1002      and energy efficiency.
             1003          (3) Each license automatically expires on the expiration date shown on the license
             1004      unless the licensee renews the license in accordance with Section 58-1-308 .
             1005          (4) The requirements of Subsection 58-55-302 (9) [shall] also apply to applicants
             1006      seeking to renew or reinstate a license.
             1007          (5) In addition to any other requirements imposed by law, if a license has been
             1008      suspended or revoked [for any reason], the applicant:
             1009          (a) shall pay in full all fines imposed by the division;
             1010          (b) resolve any outstanding citations or disciplinary actions with the division;
             1011          (c) satisfy any Section 58-55-503 judgment and sentence or nontrial resolution;
             1012          (d) complete a new financial responsibility review as required under Section
             1013      58-55-306 , using only titled assets; and
             1014          (e) pay in full any reimbursement amount as provided in Title 38, Chapter 11,
             1015      Residence Lien Restriction and Lien Recovery Fund Act.
             1016          Section 9. Section 58-55-305 is amended to read:
             1017           58-55-305. Exemptions from licensure.
             1018          (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
             1019      persons may engage in acts or practices included within the practice of construction trades,


             1020      subject to the stated circumstances and limitations, without being licensed under this chapter:
             1021          (a) an authorized representative of the United States government or an authorized
             1022      employee of the state or any of its political subdivisions when working on construction work of
             1023      the state or the subdivision, and when acting within the terms of the person's trust, office, or
             1024      employment;
             1025          (b) a person engaged in construction or operation incidental to the construction and
             1026      repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
             1027      districts, and drainage districts or construction and repair relating to farming, dairying,
             1028      agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
             1029      excavations, well drilling, as defined in Section 73-3-25 , hauling to and from construction
             1030      sites, and lumbering;
             1031          (c) public utilities operating under the rules of the Public Service Commission on work
             1032      incidental to their own business;
             1033          (d) sole owners of property engaged in building:
             1034          (i) no more than one residential structure per year and no more than three residential
             1035      structures per five years on their property for their own noncommercial, nonpublic use;
             1036      except[,] that a person other than the property owner or individuals described in Subsection
             1037      (1)(e)[,] who engages in building the structure must be licensed under this chapter if the person
             1038      is otherwise required to be licensed under this chapter; or
             1039          (ii) structures on their property for their own noncommercial, nonpublic use [which]
             1040      that are incidental to a residential structure on the property, including sheds, carports, or
             1041      detached garages;
             1042          (e) (i) a person engaged in construction or renovation of a residential building for
             1043      noncommercial, nonpublic use, if that person:
             1044          (A) works without compensation other than token compensation that is not considered
             1045      salary or wages; and
             1046          (B) works under the direction of the property owner who engages in building the
             1047      structure; and
             1048          (ii) as used in this Subsection (1)(e), "token compensation" means compensation paid
             1049      by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
             1050      exempted from licensure under this Subsection (1)(e), that is:


             1051          (A) minimal in value when compared with the fair market value of the services
             1052      provided by the person;
             1053          (B) not related to the fair market value of the services provided by the person; and
             1054          (C) is incidental to the providing of services by the person including paying for or
             1055      providing meals or refreshment while services are being provided, or paying reasonable
             1056      transportation costs incurred by the person in travel to the site of construction;
             1057          (f) a person engaged in the sale or merchandising of personal property that by its design
             1058      or manufacture may be attached, installed, or otherwise affixed to real property, and who has
             1059      contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
             1060      attach that property;
             1061          (g) a contractor submitting a bid on a federal aid highway project, if, before
             1062      undertaking construction under that bid, the contractor is licensed under this chapter;
             1063          (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
             1064      improvement of a building with a contracted or agreed value of less than $3,000, including
             1065      both labor and materials, and including all changes or additions to the contracted or agreed
             1066      upon work; and
             1067          (ii) notwithstanding Subsection (1)(h)(i) and except as otherwise provided in this
             1068      section:
             1069          (A) work in the plumbing [and], electrical, and residential heating, ventilation, and air
             1070      conditioning system trades on a project described in Subsection (1)(h)(i) [project] within any
             1071      six-month period of time:
             1072          (I) [must] shall be performed by a licensed electrical [or], plumbing, or residential
             1073      heating, ventilation, and air conditioning contractor, respectively, if the project involves an
             1074      electrical [or], plumbing, or residential heating, ventilation, and air conditioning system; [and]
             1075          (II) may be performed by a licensed journeyman electrician or plumber or an individual
             1076      referred to in Subsection (1)(h)(ii)(A)(I), if the project involves a component of the system
             1077      such as a faucet, toilet, fixture, device, [outlet] receptacle, or electrical switch; and
             1078          (III) may be performed by a licensed residential heating, ventilation, and air
             1079      conditioning technician, if the project involves a component of the system such as a thermostat,
             1080      transformer, relay, compressor, motor, or blower;
             1081          (B) installation, repair, or replacement of a residential or commercial gas appliance or a


             1082      combustion system on a Subsection (1)(h)(i) project [must] shall be performed by a person who
             1083      has received certification under Subsection 58-55-308 (2) except as otherwise provided in
             1084      Subsection 58-55-308 (2)(d) or 58-55-308 (3);
             1085          (C) installation, repair, or replacement of water-based fire protection systems on a
             1086      Subsection (1)(h)(i) project [must] shall be performed by a licensed fire suppression systems
             1087      contractor or a licensed journeyman plumber;
             1088          (D) work as an alarm business or company or as an alarm company agent shall be
             1089      performed by a licensed alarm business or company or a licensed alarm company agent, except
             1090      as otherwise provided in this chapter;
             1091          (E) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i)
             1092      project [must] shall be performed by a licensed alarm business or company or a licensed alarm
             1093      company agent;
             1094          (F) installation, repair, or replacement of a residential heating, ventilation, or air
             1095      conditioning system [(HVAC)] on a project described in Subsection (1)(h)(i) [project must]
             1096      shall be performed by [an HVAC] a residential heating, ventilation, and air conditioning
             1097      contractor licensed by the division;
             1098          (G) installation, repair, or replacement of a radon mitigation system or a soil
             1099      depressurization system [must] shall be performed by a licensed contractor; and
             1100          (H) if the total value of the project is greater than $1,000, the person shall file with the
             1101      division a one-time affirmation, subject to periodic reaffirmation as established by division
             1102      rule, that the person has:
             1103          (I) public liability insurance in coverage amounts and form established by division
             1104      rule; and
             1105          (II) if applicable, workers compensation insurance [which] that would cover an
             1106      employee of the person if that employee worked on the construction project;
             1107          (i) a person practicing a specialty contractor classification or construction trade [which]
             1108      that the director does not classify by administrative rule as significantly impacting the public's
             1109      health, safety, and welfare;
             1110          (j) owners and lessees of property and persons regularly employed for wages by owners
             1111      or lessees of property or their agents for the purpose of maintaining the property[,] are exempt
             1112      from this chapter when doing work upon the property;


             1113          (k) (i) a person engaged in minor plumbing work that is incidental, as defined by [the]
             1114      division [by] rule, to the replacement or repair of a fixture or an appliance in a residential or
             1115      small commercial building, or structure used for agricultural use, as defined in Section
             1116      15A-1-202 , provided that no modification is made to:
             1117          (A) existing culinary water, soil, waste, or vent piping; or
             1118          (B) a gas appliance or combustion system; and
             1119          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
             1120      an appliance is not included in the exemption provided under Subsection (1)(k)(i);
             1121          (l) a person who ordinarily would be subject to the plumber licensure requirements
             1122      under this chapter when installing or repairing a water conditioner or other water treatment
             1123      apparatus, if the conditioner or apparatus:
             1124          (i) meets the appropriate state construction codes or local plumbing standards; and
             1125          (ii) is installed or repaired under the direction of a person authorized to do the work
             1126      under an appropriate specialty contractor license;
             1127          (m) a person who ordinarily would be subject to the electrician licensure requirements
             1128      under this chapter when employed by:
             1129          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
             1130      contractors or constructors, or street railway systems; or
             1131          (ii) public service corporations, rural electrification associations, or municipal utilities
             1132      who generate, distribute, or sell electrical energy for light, heat, or power;
             1133          (n) a person involved in minor electrical work incidental to a mechanical or service
             1134      installation;
             1135          (o) a student participating in construction trade education and training programs
             1136      approved by the commission with the concurrence of the director under the condition that:
             1137          (i) [all] work intended as a part of a finished product on which there would normally be
             1138      an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
             1139      building inspector; and
             1140          (ii) a licensed contractor obtains the necessary building permits;
             1141          (p) a delivery person when replacing any of the following existing equipment with a
             1142      new gas appliance, provided there is an existing gas shutoff valve at the appliance:
             1143          (i) gas range;


             1144          (ii) gas dryer;
             1145          (iii) outdoor gas barbeque; or
             1146          (iv) outdoor gas patio heater;
             1147          (q) a person performing maintenance on an elevator [as defined in Subsection
             1148      58-55-102 (14)], if the maintenance is not related to the operating integrity of the elevator; and
             1149          (r) an apprentice or helper of an elevator mechanic licensed under this chapter when
             1150      working under the general direction of the licensed elevator mechanic.
             1151          (2) A compliance agency as defined in Section 15A-1-202 that issues a building permit
             1152      to a person requesting a permit as a sole owner of property referred to in Subsection (1)(d) shall
             1153      notify the division, in writing or through electronic transmission, of the issuance of the permit.
             1154          Section 10. Section 58-55-308 is amended to read:
             1155           58-55-308. Scope of practice -- Installation, repair, maintenance, cleaning, or
             1156      replacement of gas appliance or combustion system -- Rules.
             1157          (1) (a) The commission, with the concurrence of the director, may adopt reasonable
             1158      rules pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to define and
             1159      limit the scope of practice and operating standards of the classifications and subclassifications
             1160      licensed under this chapter in a manner consistent with established practice in the relevant
             1161      industry.
             1162          (b) The commission and the director may limit the field and scope of operations of a
             1163      licensee under this chapter in accordance with the rules and the public health, safety, and
             1164      welfare, based on the licensee's education, training, experience, knowledge, and financial
             1165      responsibility.
             1166          (2) (a) The work and scope of practice covered by this Subsection (2) is the
             1167      installation, repair, maintenance, cleaning, or replacement of a residential or commercial gas
             1168      appliance or combustion system.
             1169          (b) The provisions of this Subsection (2) apply to any:
             1170          (i) licensee under this chapter whose license authorizes the licensee to perform the
             1171      work described in Subsection (2)(a); and
             1172          (ii) person exempt from licensure under Subsection 58-55-305 (1)(h).
             1173          (c) [Any] A person described in Subsection (2)(b) that performs work described in
             1174      Subsection (2)(a):


             1175          (i) must first receive training and certification as specified in rules adopted by the
             1176      division; and
             1177          (ii) shall ensure that [any] each employee authorized under other provisions of this
             1178      chapter to perform work described in Subsection (2)(a) has first received training and
             1179      certification as specified in rules adopted by the division.
             1180          (d) The division may exempt from the training requirements adopted under Subsection
             1181      (2)(c) a person that has adequate experience, as determined by the division.
             1182          (3) The division may exempt the following individuals from the certification
             1183      requirements adopted under Subsection (2)(c):
             1184          (a) a person who has passed a test equivalent to the level of testing required by the
             1185      division for certification[,] or has completed an apprenticeship program that teaches the
             1186      installation of gas line appliances and is approved by the Federal Bureau of Apprenticeship
             1187      Training; and
             1188          (b) a person working under the immediate one-to-one supervision of a certified natural
             1189      gas technician or a person exempt from certification.
             1190          (4) [This section does not prohibit a] A licensed specialty contractor [from accepting
             1191      and entering] may accept and enter into a contract involving [the use of two or more crafts or
             1192      trades if the performance of the], and perform work in [the], crafts or trades[,] other than [that]
             1193      those in which the contractor is licensed, if the work in those other crafts or trades is incidental
             1194      [and supplemental] to the work for which the contractor is licensed.
             1195          Section 11. Section 58-55-501 is amended to read:
             1196           58-55-501. Unlawful conduct.
             1197          Unlawful conduct includes:
             1198          (1) engaging in a construction trade, acting as a contractor, an alarm business or
             1199      company, or an alarm company agent, or representing oneself to be engaged in a construction
             1200      trade or to be acting as a contractor in a construction trade requiring licensure, unless the
             1201      person doing any of these is appropriately licensed or exempted from licensure under this
             1202      chapter;
             1203          (2) acting in a construction trade, as an alarm business or company, or as an alarm
             1204      company agent beyond the scope of the license held;
             1205          (3) hiring or employing [in any manner] an unlicensed person, other than an employee


             1206      for wages who is not required to be licensed under this chapter, to engage in a construction
             1207      trade for which licensure is required or to act as a contractor or subcontractor in a construction
             1208      trade requiring licensure;
             1209          (4) applying for or obtaining a building permit either for oneself or another when not
             1210      licensed or exempted from licensure as a contractor under this chapter;
             1211          (5) issuing a building permit to [any] a person for whom there is no evidence of a
             1212      current license or exemption from licensure as a contractor under this chapter;
             1213          (6) applying for or obtaining a building permit for the benefit of, or on behalf of [any
             1214      other], a person who is required to be licensed under this chapter but who is not licensed or is
             1215      otherwise not entitled to obtain or receive the benefit of the building permit;
             1216          (7) failing to obtain a building permit when required by law or rule;
             1217          (8) submitting a bid for [any] work for which a license is required under this chapter by
             1218      a person not licensed or exempted from licensure as a contractor under this chapter;
             1219          (9) willfully or deliberately misrepresenting or omitting a material fact in connection
             1220      with an application to obtain or renew a license under this chapter;
             1221          (10) allowing one's license to be used by another except as provided by statute or rule;
             1222          (11) doing business under a name other than the name appearing on the license, except
             1223      as permitted by statute or rule;
             1224          [(12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
             1225      journeyman plumber, residential journeyman plumber, journeyman electrician, master
             1226      electrician, or residential electrician, failing to directly supervise an apprentice under one's
             1227      supervision or exceeding the number of apprentices one is allowed to have under the speciality
             1228      contractor's supervision;]
             1229          (12) failing to provide immediate supervision of an apprentice under a supervisor's
             1230      supervision or exceeding the number of apprentices the supervisor is allowed to have under the
             1231      supervisor's supervision if the supervisor is licensed as:
             1232          (a) a specialty contractor in the electrical, plumbing, or residential heating, ventilation,
             1233      and air conditioning trade;
             1234          (b) a master, journeyman, or residential electrician;
             1235          (c) a journeyman or residential journeyman plumber; or
             1236          (d) a master or journeyman residential heating, ventilation, and air conditioning


             1237      technician;
             1238          (13) if licensed as a contractor or representing oneself to be a contractor, receiving
             1239      [any] funds in payment for a specific project from an owner or [any] other person, which funds
             1240      are to pay for work performed, or materials and services furnished for that specific project, and
             1241      after receiving the funds [to exercise], exercising unauthorized control over the funds by failing
             1242      to pay the full amounts due and payable to persons who performed work or furnished materials
             1243      or services within a reasonable period of time;
             1244          (14) employing an unlicensed alarm business or company, or an unlicensed individual
             1245      as an alarm company agent, except as permitted under the exemption from licensure provisions
             1246      under Section 58-1-307 ;
             1247          (15) if licensed as an alarm company or alarm company agent, filing with the division
             1248      fingerprint cards for an applicant [which] that are not those of the applicant[,] or are [in any
             1249      other way] otherwise false or fraudulent and intended to mislead the division in its
             1250      consideration of the applicant for licensure;
             1251          (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
             1252          (a) the building or construction laws of this state or [any] a political subdivision;
             1253          (b) the safety and labor laws applicable to a project;
             1254          (c) [any] a provision of the health laws applicable to a project;
             1255          (d) the workers' compensation insurance laws of the state applicable to a project;
             1256          (e) the laws governing withholdings for employee state and federal income taxes,
             1257      unemployment taxes, Social Security payroll taxes, or other required withholdings; or
             1258          (f) reporting, notification, and filing laws of this state or the federal government;
             1259          (17) aiding or abetting [any] a person in evading the provisions of this chapter or rules
             1260      established under the authority of the division to govern this chapter;
             1261          (18) engaging in the construction trade, or as a contractor, for the construction of
             1262      residences of up to two units when not currently registered or exempt from registration as a
             1263      qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
             1264      Fund Act;
             1265          (19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
             1266      written contract the notification required in Section 38-11-108 ;
             1267          (20) wrongfully filing a preconstruction or construction lien in violation of Section


             1268      38-1a-308 ;
             1269          (21) if licensed as a contractor, not completing the approved continuing education
             1270      required under Section 58-55-302.5 ;
             1271          (22) an alarm company allowing an employee with a temporary license under Section
             1272      58-55-312 to engage in conduct on behalf of the company outside the scope of the temporary
             1273      license, as provided in Subsection 58-55-312 (3)(a)(ii);
             1274          (23) an alarm company agent under a temporary license under Section 58-55-312
             1275      engaging in conduct outside the scope of the temporary license, as provided in Subsection
             1276      58-55-312 (3)(a)(ii);
             1277          (24) (a) an unincorporated entity licensed under this chapter having an individual who
             1278      owns an interest in the unincorporated entity engage in a construction trade in Utah while not
             1279      lawfully present in the United States; or
             1280          (b) an unincorporated entity providing labor to an entity licensed under this chapter by
             1281      providing an individual who owns an interest in the unincorporated entity to engage in a
             1282      construction trade in Utah while not lawfully present in the United States;
             1283          (25) an unincorporated entity failing to provide the following for an individual who
             1284      engages, or will engage, in a construction trade in Utah for the unincorporated entity, or for an
             1285      individual who engages, or will engage, in a construction trade in Utah for a separate entity for
             1286      which the unincorporated entity provides the individual as labor:
             1287          (a) workers' compensation coverage:
             1288          (i) to the extent required by Title 34A, Chapter 2, Workers' Compensation Act, and
             1289      Title 34A, Chapter 3, Utah Occupational Disease Act; or
             1290          (ii) that would be required under the chapters listed in Subsection (25)(a)(i) if the
             1291      unincorporated entity were licensed under this chapter; and
             1292          (b) unemployment compensation in accordance with Title 35A, Chapter 4,
             1293      Employment Security Act, for an individual who owns, directly or indirectly, less than an 8%
             1294      interest in the unincorporated entity, as defined by rule made by the division in accordance with
             1295      Title 63G, Chapter 3, Utah Administrative Rulemaking Act; [or]
             1296          (26) [the failure of] a sign installation contractor or nonelectrical outdoor advertising
             1297      sign contractor, as classified and defined [in] by division [rules] rule, failing to:
             1298          (a) display the contractor's license number prominently on a vehicle that:


             1299          (i) the contractor uses; and
             1300          (ii) displays the contractor's business name; or
             1301          (b) carry a copy of the contractor's license in [any other] each vehicle that the
             1302      contractor uses at a job site, whether or not the vehicle is owned by the contractor[.]; or
             1303          (27) if licensed as a heating, ventilation, and air conditioning technician, failing to
             1304      complete 12 hours of continuing education related to heating, ventilation, and air conditioning
             1305      fuel and energy efficiency as required in Subsection 58-55-302.7 (2)(d).
             1306          Section 12. Section 58-55-503 is amended to read:
             1307           58-55-503. Penalty for unlawful conduct -- Citations.
             1308          (1) (a) (i) A person who violates Subsection 58-55-308 (2), Subsection 58-55-501 (1),
             1309      (2), (3), (4), (5), (6), (7), (9), (10), (12), (14), (15), (22), (23), (24), (25), [or] (26), or (27), or
             1310      Subsection 58-55-504 (2), or who fails to comply with a citation issued under this section after
             1311      it is final, is guilty of a class A misdemeanor.
             1312          (ii) As used in this section in reference to Subsection 58-55-504 (2), "person" means an
             1313      individual and does not include a sole proprietorship, joint venture, corporation, limited
             1314      liability company, association, or organization of any type.
             1315          (b) A person who violates the provisions of Subsection 58-55-501 (8) may not be
             1316      awarded and may not accept a contract for the performance of the work.
             1317          (2) A person who violates the provisions of Subsection 58-55-501 (13) is guilty of an
             1318      infraction unless the violator did so with the intent to deprive the person to whom money is to
             1319      be paid of the money received, in which case the violator is guilty of theft, as classified in
             1320      Section 76-6-412 .
             1321          (3) Grounds for immediate suspension of [the] a licensee's license by the division and
             1322      the commission include the issuance of a citation for violation of Subsection 58-55-308 (2),
             1323      Section 58-55-501 , or Subsection 58-55-504 (2), or the failure by a licensee to make application
             1324      to, report to, or notify the division with respect to [any] a matter for which application,
             1325      notification, or reporting is required under this chapter or rules adopted under this chapter,
             1326      including:
             1327          (a) applying to the division for a new license to engage in a new specialty classification
             1328      [or];
             1329          (b) applying to do business under a new form of organization or business structure[,];


             1330          (c) filing with the division current financial statements[,];
             1331          (d) notifying the division concerning loss of insurance coverage[,]; or
             1332          (e) a change in qualifier.
             1333          (4) (a) If, upon inspection or investigation, the division concludes that a person has
             1334      violated the provisions of Subsection 58-55-308 (2) or [Subsections] Subsection 58-55-501 (1),
             1335      (2), (3), (9), (10), (12), (14), (19), (21), (22), (23), (24), (25), [or] (26), or (27) or Subsection
             1336      58-55-504 (2), or [any] a rule or order issued with respect to these subsections, and that
             1337      disciplinary action is appropriate, the director or the director's designee from within the
             1338      division shall promptly issue a citation to the person according to this chapter and [any]
             1339      pertinent rules, attempt to negotiate a stipulated settlement, or notify the person to appear
             1340      before an adjudicative proceeding conducted under Title 63G, Chapter 4, Administrative
             1341      Procedures Act.
             1342          (i) A person who is in violation of the provisions of Subsection 58-55-308 (2),
             1343      Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19), (21), (22), (23), (24), (25), [or]
             1344      (26), or (27), or Subsection 58-55-504 (2), as evidenced by an uncontested citation, a stipulated
             1345      settlement, or by a finding of violation in an adjudicative proceeding, may be assessed a fine
             1346      pursuant to this Subsection (4) and may, in addition to or in lieu of, be ordered to cease and
             1347      desist from violating Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9), (10),
             1348      (12), (14), (19), (21), (24), (25), [or] (26), or (27), or Subsection 58-55-504 (2).
             1349          (ii) Except for a cease and desist order, the licensure sanctions cited in Section
             1350      58-55-401 may not be assessed through a citation.
             1351          (b) (i) A citation shall be in writing and describe with particularity the nature of the
             1352      violation, including a reference to the provision of the chapter, rule, or order alleged to have
             1353      been violated.
             1354          (ii) A citation shall clearly state that the recipient must notify the division in writing
             1355      within 20 calendar days of service of the citation if the recipient wishes to contest the citation
             1356      at a hearing conducted under Title 63G, Chapter 4, Administrative Procedures Act.
             1357          (iii) A citation shall clearly explain the consequences of failure to timely contest the
             1358      citation or to make payment of any fines assessed by the citation within the time specified in
             1359      the citation.
             1360          (c) A citation issued under this section, or a copy of a citation, may be served upon a


             1361      person upon whom a summons may be served:
             1362          (i) in accordance with the Utah Rules of Civil Procedure;
             1363          (ii) personally or upon the person's agent by a division investigator or by a person
             1364      specially designated by the director; or
             1365          (iii) by mail.
             1366          (d) (i) If, within 20 calendar days from the service of a citation, the person to whom the
             1367      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             1368      final order of the division and is not subject to further agency review.
             1369          (ii) The period to contest a citation may be extended by the division for cause.
             1370          (e) The division may refuse to issue or renew, may suspend, may revoke, or may place
             1371      on probation the license of a licensee who fails to comply with a citation after it becomes final.
             1372          (f) The failure of an applicant for licensure to comply with a citation after it becomes
             1373      final is a ground for denial of license.
             1374          (g) A citation may not be issued under this section after the expiration of six months
             1375      following the occurrence of a violation.
             1376          (h) The director or the director's designee shall assess a fine in accordance with the
             1377      following:
             1378          (i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
             1379          (ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000;
             1380      and
             1381          (iii) for [any] a subsequent offense handled pursuant to Subsection (4)(a), a fine of up
             1382      to $2,000 for each day of continued offense.
             1383          (i) (i) For purposes of issuing a final order under this section and assessing a fine under
             1384      Subsection (4)(h), an offense constitutes a second or subsequent offense if:
             1385          (A) the division previously issued a final order determining that a person committed a
             1386      first or second offense in violation of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2),
             1387      (3), (9), (10), (12), (14), (19), (24), (25), [or] (26), or (27), or Subsection 58-55-504 (2); or
             1388          (B) (I) the division initiated an action for a first or second offense;
             1389          (II) a final order has not been issued by the division in the action initiated under
             1390      Subsection (4)(i)(i)(B)(I);
             1391          (III) the division determines during an investigation that occurred after the initiation of


             1392      the action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent
             1393      violation of the provisions of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9),
             1394      (10), (12), (14), (19), (24), (25), [or] (26), or (27), or Subsection 58-55-504 (2); and
             1395          (IV) after determining that the person committed a second or subsequent offense under
             1396      Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under
             1397      Subsection (4)(i)(i)(B)(I).
             1398          (ii) In issuing a final order for a second or subsequent offense under Subsection
             1399      (4)(i)(i), the division shall comply with the requirements of this section.
             1400          (j) In addition to any other licensure sanction or fine imposed under this section, the
             1401      division shall revoke the license of a licensee that violates Subsection 58-55-501 (24) or (25)
             1402      two or more times within a 12-month period, unless, with respect to a violation of Subsection
             1403      58-55-501 (24), the licensee can demonstrate that the licensee successfully verified the federal
             1404      legal working status of the individual who was the subject of the violation using a status
             1405      verification system, as defined in Section 13-47-102 .
             1406          (k) For purposes of this Subsection (4), a violation of Subsection 58-55-501 (24) or (25)
             1407      for each individual is considered a separate violation.
             1408          (5) (a) A penalty imposed by the director under Subsection (4)(h) shall be deposited
             1409      into the Commerce Service Account created by Section 13-1-2 .
             1410          (b) A penalty that is not paid may be collected by the director by either referring the
             1411      matter to a collection agency or bringing an action in the district court of the county in which
             1412      the person against whom the penalty is imposed resides or in the county where the office of the
             1413      director is located.
             1414          (c) A county attorney or the attorney general of the state is to provide legal assistance
             1415      and advice to the director in [any] an action to collect [the] a penalty.
             1416          (d) In an action brought to enforce the provisions of this section, reasonable attorney
             1417      fees and costs shall be awarded.




Legislative Review Note
    as of 1-21-13 5:44 PM


Office of Legislative Research and General Counsel


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