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UTAH STATE SENATE

UTAH STATE CAPITOL COMPLEX * 320 STATE CAPITOL

P.O. BOX 145115 * SALT LAKE CITY, UTAH 84114-5115 * (801) 538-1035         February 18, 2014

Mr. President:

    The Business and Labor Committee reports a favorable recommendation on S.B. 186, CONTRACTOR LICENSING AND CONTINUING EDUCATION AMENDMENTS, by Senator W. Harper, with the following amendments:


1.    Page 1, Line 22 through Page 2, Line 31 :    

             22      Utah Code Sections Affected:
             23      AMENDS:
             24           58-55-102 , as last amended by Laws of Utah 2013, Chapter 36
             25           58-55-302 , as last amended by Laws of Utah 2013, Chapters 57, 426, and 430
             26          

{   58-55-303 , as last amended by Laws of Utah 2013, Chapter 57   }

             27           58-55-305 , as last amended by Laws of Utah 2013, Chapters 430 and 449
             28          
{   58-55-501 , as last amended by Laws of Utah 2013, Chapter 57   }

             29           58-55-503 , as last amended by Laws of Utah 2013, Chapter 57
             30
{  
     REPEALS:
             31          
58-55-302.5 , as last amended by Laws of Utah 2013, Chapter 430
 
}

2.    Page 22, Line 654 through Page 23, Line 695 :    

             654          
{   Section 3. Section 58-55-303 is amended to read:

             655          58-55-303. Term of license -- Expiration -- Renewal.
             656          (1) (a) Each license issued under this chapter shall be issued in accordance with

a
             657      two-year renewal cycle established by rule.
             658          (b) The division may by rule extend or shorten a renewal period by as much as one year
             659      to stagger the renewal cycle it administers.
             660          (c) (i) Notwithstanding a renewal cycle under Subsection (1)(a) or (b), notwithstanding
             661      Title 63G, Chapter 4, Administrative Procedures Act, and subject to Subsection (1)(c)(ii), a
             662      license is automatically suspended 60 days after the licensee:
             663          (A) becomes, after the time of licensing, an unincorporated entity that is subject to the
             664      ownership status report filing requirements of Subsection
58-55-302 (10)(a)(i); or
             665          (B) transfers its license to an unincorporated entity that is subject to the ownership
             666      status report filing requirements of Subsection
58-55-302 (10)(a)(i).
             667          (ii) An automatic suspension does not occur under Subsection (1)(c)(i) if, before the
             668      expiration of the 60-day period in Subsection (1)(c)(i):
             669          (A) the licensee submits an application for renewal of the license; and
             670          (B) the division renews the licensee's license pursuant to the licensee's application for
             671      renewal.
             672          (iii) Within 30 days after the effective date of a suspension under Subsection (1)(c)(i),
             673      the commission shall, in accordance with Title 63G, Chapter 4, Administrative Procedures Act,
             674      make a final determination concerning the suspension.
             675          (2) At the time of renewal, the licensee shall show satisfactory evidence of:
             676          (a) continuing financial responsibility as required under Section
58-55-306 ; and
             677          [(b) for a contractor licensee, completion of six hours of approved continuing
             678      education, as required in Section
58-55-302.5 ; and]
             679          [(c)] (b) if the licensee is an apprentice electrician or plumber, journeyman electrician
             680      or plumber, master electrician or plumber, residential journeyman electrician or plumber, or
             681      residential master electrician or plumber, completion of the number of hours of continuing
             682      education specified under Section
58-55-302.7 .
             683          (3) Each license automatically expires on the expiration date shown on the license
             684      unless the licensee renews the license in accordance with Section
58-1-308 .
             685          (4) The requirements of Subsection
58-55-302 (9) shall also apply to applicants seeking
             686      to renew or reinstate a license.
             687          (5) In addition to any other requirements imposed by law, if a license has been
             688      suspended or revoked for any reason, the applicant:


             689          (a) shall pay in full all fines imposed by the division;
             690          (b) resolve any outstanding citations or disciplinary actions with the division;
             691          (c) satisfy any Section
58-55-503 judgment and sentence or nontrial resolution;
             692          (d) complete a new financial responsibility review as required under Section
             693     
58-55-306 , using only titled assets; and
             694          (e) pay in full any reimbursement amount as provided in Title 38, Chapter 11,
             695      Residence Lien Restriction and Lien Recovery Fund Act.  
}


Renumber remaining sections accordingly.

3.    Page 27, Line 833 through Page 31, Line 941 :    

             833          

{   Section 5. Section 58-55-501 is amended to read:

             834          58-55-501. Unlawful conduct.
             835          Unlawful conduct includes:
             836          (1) engaging in a construction trade, acting as a contractor, an alarm business or
             837      company, or an alarm company agent, or representing oneself to be engaged in a construction
             838      trade or to be acting as a contractor in a construction trade requiring licensure, unless the
             839      person doing any of these is appropriately licensed or exempted from licensure under this
             840      chapter;
             841          (2) acting in a construction trade, as an alarm business or company, or as an alarm
             842      company agent beyond the scope of the license held;
             843          (3) hiring or employing in any manner an unlicensed person, other than an employee
             844      for wages who is not required to be licensed under this chapter, to engage in a construction
             845      trade for which licensure is required or to act as a contractor or subcontractor in a

construction
             846      trade requiring licensure;
             847          (4) applying for or obtaining a building permit either for oneself or another when not
             848      licensed or exempted from licensure as a contractor under this chapter;
             849          (5) issuing a building permit to any person for whom there is no evidence of a current
             850      license or exemption from licensure as a contractor under this chapter;
             851          (6) applying for or obtaining a building permit for the benefit of or on behalf of any
             852      other person who is required to be licensed under this chapter but who is not licensed or is
             853      otherwise not entitled to obtain or receive the benefit of the building permit;
             854          (7) failing to obtain a building permit when required by law or rule;
             855          (8) submitting a bid for any work for which a license is required under this chapter by a
             856      person not licensed or exempted from licensure as a contractor under this chapter;
             857          (9) willfully or deliberately misrepresenting or omitting a material fact in connection
             858      with an application to obtain or renew a license under this chapter;
             859          (10) allowing one's license to be used by another except as provided by statute or rule;
             860          (11) doing business under a name other than the name appearing on the license, except
             861      as permitted by statute or rule;
             862          (12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
             863      journeyman plumber, residential journeyman plumber, journeyman electrician, master
             864      electrician, or residential electrician, failing to directly supervise an apprentice under one's
             865      supervision or exceeding the number of apprentices one is allowed to have under the speciality


             866      contractor's supervision;
             867          (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
             868      funds in payment for a specific project from an owner or any other person, which funds are to
             869      pay for work performed or materials and services furnished for that specific project, and after
             870      receiving the funds to exercise unauthorized control over the funds by failing to pay the full
             871      amounts due and payable to persons who performed work or furnished materials or services
             872      within a reasonable period of time;
             873          (14) employing an unlicensed alarm business or company or an unlicensed individual
             874      as an alarm company agent, except as permitted under the exemption from licensure provisions
             875      under Section
58-1-307 ;
             876          (15) if licensed as an alarm company or alarm company agent, filing with the division
             877      fingerprint cards for an applicant which are not those of the applicant, or are in any other way
             878      false or fraudulent and intended to mislead the division in its consideration of the applicant for
             879      licensure;
             880          (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
             881          (a) the building or construction laws of this state or any political subdivision;
             882          (b) the safety and labor laws applicable to a project;
             883          (c) any provision of the health laws applicable to a project;
             884          (d) the workers' compensation insurance laws of the state applicable to a project;
             885          (e) the laws governing withholdings for employee state and federal income taxes,


             886      unemployment taxes, Social Security payroll taxes, or other required withholdings; or
             887          (f) reporting, notification, and filing laws of this state or the federal government;
             888          (17) aiding or abetting any person in evading the provisions of this chapter or rules
             889      established under the authority of the division to govern this chapter;
             890          (18) engaging in the construction trade or as a contractor for the construction of
             891      residences of up to two units when not currently registered or exempt from registration as a
             892      qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
             893      Fund Act;
             894          (19) failing, as an original contractor, as defined in Section
38-11-102 , to include in a
             895      written contract the notification required in Section
38-11-108 ;
             896          (20) wrongfully filing a preconstruction or construction lien in violation of Section
             897     
38-1a-308 ;
             898          [(21) if licensed as a contractor, not completing the approved continuing education
             899      required under Section
58-55-302.5 ;]
             900          [(22)] (21) an alarm company allowing an employee with a temporary license under
             901      Section
58-55-312 to engage in conduct on behalf of the company outside the scope of the
             902      temporary license, as provided in Subsection
58-55-312 (3)(a)(ii);
             903          [(23)] (22) an alarm company agent under a temporary license under Section
58-55-312
             904      engaging in conduct outside the scope of the temporary license, as provided in Subsection
             905     
58-55-312 (3)(a)(ii);


             906          [(24)] (23) (a) an unincorporated entity licensed under this chapter having an individual
             907      who owns an interest in the unincorporated entity engage in a construction trade in Utah while
             908      not lawfully present in the United States; or
             909          (b) an unincorporated entity providing labor to an entity licensed under this chapter by
             910      providing an individual who owns an interest in the unincorporated entity to engage in a
             911      construction trade in Utah while not lawfully present in the United States;
             912          [(25)] (24) an unincorporated entity failing to provide the following for an individual
             913      who engages, or will engage, in a construction trade in Utah for the unincorporated entity, or
             914      for an individual who engages, or will engage, in a construction trade in Utah for a separate
             915      entity for which the unincorporated entity provides the individual as labor:
             916          (a) workers' compensation coverage:
             917          (i) to the extent required by Title 34A, Chapter 2, Workers' Compensation Act, and
             918      Title 34A, Chapter 3, Utah Occupational Disease Act; or
             919          (ii) that would be required under the chapters listed in Subsection [(25)] (24)(a)(i) if
             920      the unincorporated entity were licensed under this chapter; and
             921          (b) unemployment compensation in accordance with Title 35A, Chapter 4,
             922      Employment Security Act, for an individual who owns, directly or indirectly, less than an 8%
             923      interest in the unincorporated entity, as defined by rule made by the division in accordance with
             924      Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             925          [(26)] (25) the failure of a sign installation contractor or nonelectrical outdoor
             926      advertising sign contractor, as classified and defined in division rules, to:
             927          (a) display the contractor's license number prominently on a vehicle that:


             928          (i) the contractor uses; and
             929          (ii) displays the contractor's business name; or
             930          (b) carry a copy of the contractor's license in any other vehicle that the contractor uses
             931      at a job site, whether or not the vehicle is owned by the contractor;
             932          [(27)] (26) (a) an unincorporated entity licensed under this chapter having an individual
             933      who owns an interest in the unincorporated entity engage in a construction trade in the state
             934      while the individual is using a Social Security number that does not belong to that individual;
             935      or
             936          (b) an unincorporated entity providing labor to an entity licensed under this chapter by
             937      providing an individual, who owns an interest in the unincorporated entity, to engage in a
             938      construction trade in the state while the individual is using a Social Security number that does
             939      not belong to that individual; or
             940          [(28)] (27) a contractor failing to comply with a requirement imposed by a political
             941      subdivision, state agency, or board of education under Section
58-55-310 .
 
}
Renumber remaining sections accordingly.


4.    Page 35, Lines 1052 through 1055 :    

             1052          
{   Section 7. Repealer.

             1053          This bill repeals:
             1054          Section
58-55-302.5 , Continuing education requirements of contractor licensees --
             1055      Continuing education courses.  
}

        Respectfully,

        Curtis S. Bramble
        Committee Chair

Voting: 6-0-1
3 SB0186.SC1.wpd bhowe/BRH PLA/BNC 2/18/14 2:54 pm


Bill Number
Action Class
Action Code

*SB0186*
*S*
*SCRAMD*

SB0186
S
SCRAMD