1     
CONSTRUCTION TRADES LICENSING AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Karen Mayne

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          ▸     creates new trade license classifications and requirements for:
14               •     an automatic fire sprinkler contractor;
15               •     a journeyman automatic sprinkler contractor; and
16               •     an automatic fire sprinkler apprentice;
17          ▸     creates an Automatic Fire Sprinkler Licensing Board; and
18          ▸     makes technical changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          58-55-102, as last amended by Laws of Utah 2017, Chapter 411
26          58-55-201, as last amended by Laws of Utah 2008, Chapter 215
27          58-55-301, as last amended by Laws of Utah 2017, Chapter 411

28          58-55-302, as last amended by Laws of Utah 2017, Chapter 411
29          58-55-305, as last amended by Laws of Utah 2013, Chapters 430 and 449
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 58-55-102 is amended to read:
33          58-55-102. Definitions.
34          In addition to the definitions in Section 58-1-102, as used in this chapter:
35          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
36     maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
37     except as provided in Subsection (1)(b).
38          (b) "Alarm business or company" does not include:
39          (i) a person engaged in the manufacture or sale of alarm systems unless:
40          (A) that person is also engaged in the installation, maintenance, alteration, repair,
41     replacement, servicing, or monitoring of alarm systems;
42          (B) the manufacture or sale occurs at a location other than a place of business
43     established by the person engaged in the manufacture or sale; or
44          (C) the manufacture or sale involves site visits at the place or intended place of
45     installation of an alarm system; or
46          (ii) an owner of an alarm system, or an employee of the owner of an alarm system who
47     is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
48     of the alarm system owned by that owner.
49          (2) "Alarm company agent":
50          (a) except as provided in Subsection (2)(b), means any individual employed within this
51     state by an alarm business; and
52          (b) does not include an individual who:
53          (i) is not engaged in the sale, installation, maintenance, alteration, repair, replacement,
54     servicing, or monitoring of an alarm system; and
55          (ii) does not, during the normal course of the individual's employment with an alarm
56     business, use or have access to sensitive alarm system information.
57          (3) "Alarm system" means equipment and devices assembled for the purpose of:
58          (a) detecting and signaling unauthorized intrusion or entry into or onto certain

59     premises; or
60          (b) signaling a robbery or attempted robbery on protected premises.
61          (4) "Apprentice electrician" means a person licensed under this chapter as an
62     apprentice electrician who is learning the electrical trade under the immediate supervision of a
63     master electrician, residential master electrician, a journeyman electrician, or a residential
64     journeyman electrician.
65          (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
66     plumber who is learning the plumbing trade under the immediate supervision of a master
67     plumber, residential master plumber, journeyman plumber, or a residential journeyman
68     plumber.
69          (6) "Approved continuing education" means instruction provided through courses
70     under a program established under Subsection 58-55-302.5(2).
71          (7) (a) "Approved prelicensure course provider" means a provider that is approved by
72     the commission with the concurrence of the director, and that meets the requirements
73     established by rule by the commission with the concurrence of the director, to teach the
74     25-hour course described in Subsection 58-55-302(1)(e)(iii).
75          (b) "Approved prelicensure course provider" may only include a provider that, in
76     addition to any other locations, offers the 25-hour course described in Subsection
77     58-55-302(1)(e)(iii) at least six times each year in one or more counties other than Salt Lake
78     County, Utah County, Davis County, or Weber County.
79          (8) "Automatic fire sprinkler apprentice" means a person licensed under this chapter as
80     an automatic sprinkler apprentice having the qualifications, training, experience, and
81     knowledge to install, maintain, and repair automatic fire sprinkler systems under the direct
82     supervision of an automatic fire sprinkler contractor.
83          (9) "Automatic fire sprinkler contractor" means a person licensed under this chapter as
84     an automatic fire sprinkler contractor having the qualifications, training, experience, and
85     knowledge to install, maintain, and repair automatic fire sprinkler systems and to supervise the
86     installation, maintenance, and repair of automatic fire sprinkler systems.
87          [(8)] (10) "Board" means the Electrician Licensing Board, Alarm System Security and
88     Licensing Board, [or] Plumbers Licensing Board, or Automatic Fire Sprinkler Licensing Board
89     created in Section 58-55-201.

90          [(9)] (11) "Combustion system" means an assembly consisting of:
91          (a) piping and components with a means for conveying, either continuously or
92     intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
93     appliance;
94          (b) the electric control and combustion air supply and venting systems, including air
95     ducts; and
96          (c) components intended to achieve control of quantity, flow, and pressure.
97          [(10)] (12) "Commission" means the Construction Services Commission created under
98     Section 58-55-103.
99          [(11)] (13) "Construction trade" means any trade or occupation involving:
100          (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition
101     to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
102     or other project, development, or improvement to other than personal property; and
103          (ii) constructing, remodeling, or repairing a manufactured home or mobile home as
104     defined in Section 15A-1-302; or
105          (b) installation or repair of a residential or commercial natural gas appliance or
106     combustion system.
107          [(12)] (14) "Construction trades instructor" means a person licensed under this chapter
108     to teach one or more construction trades in both a classroom and project environment, where a
109     project is intended for sale to or use by the public and is completed under the direction of the
110     instructor, who has no economic interest in the project.
111          [(13)] (15) (a) "Contractor" means any person who for compensation other than wages
112     as an employee undertakes any work in the construction, plumbing, or electrical trade for
113     which licensure is required under this chapter and includes:
114          (i) a person who builds any structure on the person's own property for the purpose of
115     sale or who builds any structure intended for public use on the person's own property;
116          (ii) any person who represents that the person is a contractor, or will perform a service
117     described in this Subsection [(13)] (15), by advertising on a website or social media, or any
118     other means;
119          (iii) any person engaged as a maintenance person, other than an employee, who
120     regularly engages in activities set forth under the definition of "construction trade";

121          (iv) any person engaged in, or offering to engage in, any construction trade for which
122     licensure is required under this chapter; or
123          (v) a construction manager, construction consultant, construction assistant, or any other
124     person who, for a fee:
125          (A) performs or offers to perform construction consulting;
126          (B) performs or offers to perform management of construction subcontractors;
127          (C) provides or offers to provide a list of subcontractors or suppliers; or
128          (D) provides or offers to provide management or counseling services on a construction
129     project.
130          (b) "Contractor" does not include:
131          (i) an alarm company or alarm company agent; or
132          (ii) a material supplier who provides consulting to customers regarding the design and
133     installation of the material supplier's products.
134          [(14)] (16) (a) "Electrical trade" means the performance of any electrical work involved
135     in the installation, construction, alteration, change, repair, removal, or maintenance of facilities,
136     buildings, or appendages or appurtenances.
137          (b) "Electrical trade" does not include:
138          (i) transporting or handling electrical materials;
139          (ii) preparing clearance for raceways for wiring; or
140          (iii) work commonly done by unskilled labor on any installations under the exclusive
141     control of electrical utilities.
142          (c) For purposes of Subsection [(14)] (16)(b):
143          (i) no more than one unlicensed person may be so employed unless more than five
144     licensed electricians are employed by the shop; and
145          (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio
146     permitted by this Subsection [(14)] (16)(c).
147          [(15)] (17) "Elevator" means the same as that term is defined in Section 34A-7-202,
148     except that for purposes of this chapter it does not mean a stair chair, a vertical platform lift, or
149     an incline platform lift.
150          [(16)] (18) "Elevator contractor" means a sole proprietor, firm, or corporation licensed
151     under this chapter that is engaged in the business of erecting, constructing, installing, altering,

152     servicing, repairing, or maintaining an elevator.
153          [(17)] (19) "Elevator mechanic" means an individual who is licensed under this chapter
154     as an elevator mechanic and who is engaged in erecting, constructing, installing, altering,
155     servicing, repairing, or maintaining an elevator under the immediate supervision of an elevator
156     contractor.
157          [(18)] (20) "Employee" means an individual as defined by the division by rule giving
158     consideration to the definition adopted by the Internal Revenue Service and the Department of
159     Workforce Services.
160          [(19)] (21) "Engage in a construction trade" means to:
161          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
162     in a construction trade; or
163          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
164     to believe one is or will act as a contractor.
165          [(20)] (22) (a) "Financial responsibility" means a demonstration of a current and
166     expected future condition of financial solvency evidencing a reasonable expectation to the
167     division and the board that an applicant or licensee can successfully engage in business as a
168     contractor without jeopardy to the public health, safety, and welfare.
169          (b) Financial responsibility may be determined by an evaluation of the total history
170     concerning the licensee or applicant including past, present, and expected condition and record
171     of financial solvency and business conduct.
172          [(21)] (23) "Gas appliance" means any device that uses natural gas to produce light,
173     heat, power, steam, hot water, refrigeration, or air conditioning.
174          [(22)] (24) (a) "General building contractor" means a person licensed under this
175     chapter as a general building contractor qualified by education, training, experience, and
176     knowledge to perform or superintend construction of structures for the support, shelter, and
177     enclosure of persons, animals, chattels, or movable property of any kind or any of the
178     components of that construction except plumbing, electrical work, mechanical work, work
179     related to the operating integrity of an elevator, and manufactured housing installation, for
180     which the general building contractor shall employ the services of a contractor licensed in the
181     particular specialty, except that a general building contractor engaged in the construction of
182     single-family and multifamily residences up to four units may perform the mechanical work

183     and hire a licensed plumber or electrician as an employee.
184          (b) The division may by rule exclude general building contractors from engaging in the
185     performance of other construction specialties in which there is represented a substantial risk to
186     the public health, safety, and welfare, and for which a license is required unless that general
187     building contractor holds a valid license in that specialty classification.
188          [(23)] (25) (a) "General electrical contractor" means a person licensed under this
189     chapter as a general electrical contractor qualified by education, training, experience, and
190     knowledge to perform the fabrication, construction, and installation of generators,
191     transformers, conduits, raceways, panels, switch gear, electrical wires, fixtures, appliances, or
192     apparatus that uses electrical energy.
193          (b) The scope of work of a general electrical contractor may be further defined by rules
194     made by the commission, with the concurrence of the director, in accordance with Title 63G,
195     Chapter 3, Utah Administrative Rulemaking Act.
196          [(24)] (26) (a) "General engineering contractor" means a person licensed under this
197     chapter as a general engineering contractor qualified by education, training, experience, and
198     knowledge to perform construction of fixed works in any of the following: irrigation, drainage,
199     water, power, water supply, flood control, inland waterways, harbors, railroads, highways,
200     tunnels, airports and runways, sewers and bridges, refineries, pipelines, chemical and industrial
201     plants requiring specialized engineering knowledge and skill, piers, and foundations, or any of
202     the components of those works.
203          (b) A general engineering contractor may not perform construction of structures built
204     primarily for the support, shelter, and enclosure of persons, animals, and chattels.
205          [(25)] (27) (a) "General plumbing contractor" means a person licensed under this
206     chapter as a general plumbing contractor qualified by education, training, experience, and
207     knowledge to perform the fabrication or installation of material and fixtures to create and
208     maintain sanitary conditions in a building by providing permanent means for a supply of safe
209     and pure water, a means for the timely and complete removal from the premises of all used or
210     contaminated water, fluid and semi-fluid organic wastes and other impurities incidental to life
211     and the occupation of such premises, and a safe and adequate supply of gases for lighting,
212     heating, and industrial purposes.
213          (b) The scope of work of a general plumbing contractor may be further defined by rules

214     made by the commission, with the concurrence of the director, in accordance with Title 63G,
215     Chapter 3, Utah Administrative Rulemaking Act.
216          [(26)] (28) "Immediate supervision" means reasonable direction, oversight, inspection,
217     and evaluation of the work of a person:
218          (a) as the division specifies in rule;
219          (b) by, as applicable, a qualified electrician or plumber;
220          (c) as part of a planned program of training; and
221          (d) to ensure that the end result complies with applicable standards.
222          [(27)] (29) "Individual" means a natural person.
223          (30) "Journeyman automatic sprinkler contractor" means a person licensed under this
224     chapter as a journeyman automatic sprinkler contractor having the qualifications, training,
225     experience, and knowledge to install, maintain, and repair automatic fire sprinkler systems
226     under the supervision of an automatic fire sprinkler contractor.
227          [(28)] (31) "Journeyman electrician" means a person licensed under this chapter as a
228     journeyman electrician having the qualifications, training, experience, and knowledge to wire,
229     install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
230          [(29)] (32) "Journeyman plumber" means a person licensed under this chapter as a
231     journeyman plumber having the qualifications, training, experience, and technical knowledge
232     to engage in the plumbing trade.
233          [(30)] (33) "Master electrician" means a person licensed under this chapter as a master
234     electrician having the qualifications, training, experience, and knowledge to properly plan,
235     layout, and supervise the wiring, installation, and repair of electrical apparatus and equipment
236     for light, heat, power, and other purposes.
237          [(31)] (34) "Master plumber" means a person licensed under this chapter as a master
238     plumber having the qualifications, training, experience, and knowledge to properly plan and
239     layout projects and supervise persons in the plumbing trade.
240          [(32)] (35) "Person" means a natural person, sole proprietorship, joint venture,
241     corporation, limited liability company, association, or organization of any type.
242          [(33)] (36) (a) "Plumbing trade" means the performance of any mechanical work
243     pertaining to the installation, alteration, change, repair, removal, maintenance, or use in
244     buildings, or within three feet beyond the outside walls of buildings, of pipes, fixtures, and

245     fittings for the:
246          (i) delivery of the water supply;
247          (ii) discharge of liquid and water carried waste;
248          (iii) building drainage system within the walls of the building; and
249          (iv) delivery of gases for lighting, heating, and industrial purposes.
250          (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
251     fixtures and fixture traps, soil, waste and vent pipes, the building drain and roof drains, and the
252     safe and adequate supply of gases, together with their devices, appurtenances, and connections
253     where installed within the outside walls of the building.
254          [(34)] (37) (a) "Ratio of apprentices" means, for the purpose of determining
255     compliance with the requirements for planned programs of training and electrician apprentice
256     licensing applications, the shop ratio of apprentice electricians to journeyman or master
257     electricians shall be one journeyman or master electrician to one apprentice on industrial and
258     commercial work, and one journeyman or master electrician to three apprentices on residential
259     work.
260          (b) On-the-job training shall be under circumstances in which the ratio of apprentices
261     to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
262     three apprentices to one supervisor on residential projects.
263          [(35)] (38) "Residential and small commercial contractor" means a person licensed
264     under this chapter as a residential and small commercial contractor qualified by education,
265     training, experience, and knowledge to perform or superintend the construction of
266     single-family residences, multifamily residences up to four units, and commercial construction
267     of not more than three stories above ground and not more than 20,000 square feet, or any of the
268     components of that construction except plumbing, electrical work, mechanical work, and
269     manufactured housing installation, for which the residential and small commercial contractor
270     shall employ the services of a contractor licensed in the particular specialty, except that a
271     residential and small commercial contractor engaged in the construction of single-family and
272     multifamily residences up to four units may perform the mechanical work and hire a licensed
273     plumber or electrician as an employee.
274          [(36)] (39) "Residential building," as it relates to the license classification of residential
275     journeyman plumber and residential master plumber, means a single or multiple family

276     dwelling of up to four units.
277          [(37)] (40) (a) "Residential electrical contractor" means a person licensed under this
278     chapter as a residential electrical contractor qualified by education, training, experience, and
279     knowledge to perform the fabrication, construction, and installation of services, disconnecting
280     means, grounding devices, panels, conductors, load centers, lighting and plug circuits,
281     appliances, and fixtures in a residential unit.
282          (b) The scope of work of a residential electrical contractor may be further defined by
283     rules made by the commission, with the concurrence of the director, in accordance with Title
284     63G, Chapter 3, Utah Administrative Rulemaking Act.
285          [(38)] (41) "Residential journeyman electrician" means a person licensed under this
286     chapter as a residential journeyman electrician having the qualifications, training, experience,
287     and knowledge to wire, install, and repair electrical apparatus and equipment for light, heat,
288     power, and other purposes on buildings using primarily nonmetallic sheath cable.
289          [(39)] (42) "Residential journeyman plumber" means a person licensed under this
290     chapter as a residential journeyman plumber having the qualifications, training, experience, and
291     knowledge to engage in the plumbing trade as limited to the plumbing of residential buildings.
292          [(40)] (43) "Residential master electrician" means a person licensed under this chapter
293     as a residential master electrician having the qualifications, training, experience, and
294     knowledge to properly plan, layout, and supervise the wiring, installation, and repair of
295     electrical apparatus and equipment for light, heat, power, and other purposes on residential
296     projects.
297          [(41)] (44) "Residential master plumber" means a person licensed under this chapter as
298     a residential master plumber having the qualifications, training, experience, and knowledge to
299     properly plan and layout projects and supervise persons in the plumbing trade as limited to the
300     plumbing of residential buildings.
301          [(42)] (45) (a) "Residential plumbing contractor" means a person licensed under this
302     chapter as a general plumbing contractor qualified by education, training, experience, and
303     knowledge to perform the fabrication or installation of material and fixtures to create and
304     maintain sanitary conditions in residential buildings by providing permanent means for a
305     supply of safe and pure water, a means for the timely and complete removal from the premises
306     of all used or contaminated water, fluid and semi-fluid organic wastes and other impurities

307     incidental to life and the occupation of such premises, and a safe and adequate supply of gases
308     for lighting, heating, and industrial purposes.
309          (b) The scope of work of a residential plumbing contractor may be further defined by
310     rules made by the commission, with the concurrence of the director, in accordance with Title
311     63G, Chapter 3, Utah Administrative Rulemaking Act.
312          [(43)] (46) "Residential project," as it relates to an electrician or electrical contractor,
313     means buildings primarily wired with nonmetallic sheathed cable, in accordance with standard
314     rules and regulations governing this work, including the National Electrical Code, and in which
315     the voltage does not exceed 250 volts line to line and 125 volts to ground.
316          [(44)] (47) "Sensitive alarm system information" means:
317          (a) a pass code or other code used in the operation of an alarm system;
318          (b) information on the location of alarm system components at the premises of a
319     customer of the alarm business providing the alarm system;
320          (c) information that would allow the circumvention, bypass, deactivation, or other
321     compromise of an alarm system of a customer of the alarm business providing the alarm
322     system; and
323          (d) any other similar information that the division by rule determines to be information
324     that an individual employed by an alarm business should use or have access to only if the
325     individual is licensed as provided in this chapter.
326          [(45)] (48) (a) "Specialty contractor" means a person licensed under this chapter under
327     a specialty contractor classification established by rule, who is qualified by education, training,
328     experience, and knowledge to perform those construction trades and crafts requiring
329     specialized skill, the regulation of which are determined by the division to be in the best
330     interest of the public health, safety, and welfare.
331          (b) A specialty contractor may perform work in crafts or trades other than those in
332     which the specialty contractor is licensed if they are incidental to the performance of the
333     specialty contractor's licensed craft or trade.
334          [(46)] (49) "Unincorporated entity" means an entity that is not:
335          (a) an individual;
336          (b) a corporation; or
337          (c) publicly traded.

338          [(47)] (50) "Unlawful conduct" means the same as that term is defined in Sections
339     58-1-501 and 58-55-501.
340          [(48)] (51) "Unprofessional conduct" means the same as that term is defined in
341     Sections 58-1-501 and 58-55-502 and as may be further defined by rule.
342          [(49)] (52) "Wages" means amounts due to an employee for labor or services whether
343     the amount is fixed or ascertained on a time, task, piece, commission, or other basis for
344     calculating the amount.
345          Section 2. Section 58-55-201 is amended to read:
346          58-55-201. Boards created -- Duties.
347          (1) There is created a Plumbers Licensing Board, an Alarm System Security and
348     Licensing Board, [and] an Electricians Licensing Board[.], and an Automatic Fire Sprinkler
349     Licensing Board. Members of the boards shall be selected to provide representation as follows:
350          (a) The Plumbers Licensing Board consists of five members as follows:
351          (i) two members shall be licensed from among the license classifications of master or
352     journeyman plumber;
353          (ii) two members shall be licensed plumbing contractors; and
354          (iii) one member shall be from the public at large with no history of involvement in the
355     construction trades.
356          (b) (i) The Alarm System Security and Licensing Board consists of five members as
357     follows:
358          (A) three individuals who are officers or owners of a licensed alarm business;
359          (B) one individual from among nominees of the Utah Peace Officers Association; and
360          (C) one individual representing the general public.
361          (ii) The Alarm System Security and Licensing Board shall designate one of its
362     members on a permanent or rotating basis to:
363          (A) assist the division in reviewing complaints concerning the unlawful or
364     unprofessional conduct of a licensee; and
365          (B) advise the division in its investigation of these complaints.
366          (iii) A board member who has, under this Subsection (1)(b)(iii), reviewed a complaint
367     or advised in its investigation is disqualified from participating with the board when the board
368     serves as a presiding officer in an adjudicative proceeding concerning the complaint.

369          (c) The Electricians Licensing Board consists of five members as follows:
370          (i) two members shall be licensed from among the license classifications of master or
371     journeyman electrician, of whom one shall represent a union organization and one shall be
372     selected having no union affiliation;
373          (ii) two shall be licensed electrical contractors of whom one shall represent a union
374     organization and one shall be selected having no union affiliation; and
375          (iii) one member shall be from the public at large with no history of involvement in the
376     construction trades or union affiliation.
377          (d) The Automatic Fire Sprinkler Licensing Board consists of five members as follows:
378          (i) four members shall be licensed from among the license classifications of automatic
379     fire sprinkler contractor or journeyman automatic sprinkler contractor; and
380          (ii) one member shall be from the public at large with no history of involvement in the
381     construction trades or any union affiliation.
382          (2) The duties, functions, and responsibilities of each board include the following:
383          (a) recommending to the commission appropriate rules;
384          (b) recommending to the commission policy and budgetary matters;
385          (c) approving and establishing a passing score for applicant examinations;
386          (d) overseeing the screening of applicants for licensing, renewal, reinstatement, and
387     relicensure;
388          (e) assisting the commission in establishing standards of supervision for students or
389     persons in training to become qualified to obtain a license in the occupation or profession it
390     represents; and
391          (f) acting as presiding officer in conducting hearings associated with the adjudicative
392     proceedings and in issuing recommended orders when so authorized by the commission.
393          Section 3. Section 58-55-301 is amended to read:
394          58-55-301. License required -- License classifications.
395          (1) (a) A person engaged in the construction trades licensed under this chapter, as a
396     contractor regulated under this chapter, as an alarm business or company, or as an alarm
397     company agent, shall become licensed under this chapter before engaging in that trade or
398     contracting activity in this state unless specifically exempted from licensure under Section
399     58-1-307 or 58-55-305.

400          (b) The license issued under this chapter and the business license issued by the local
401     jurisdiction in which the licensee has its principal place of business shall be the only licenses
402     required for the licensee to engage in a trade licensed by this chapter, within the state.
403          (c) Neither the state nor any of its political subdivisions may require of a licensee any
404     additional business licenses, registrations, certifications, contributions, donations, or anything
405     else established for the purpose of qualifying a licensee under this chapter to do business in that
406     local jurisdiction, except for contract prequalification procedures required by state agencies, or
407     the payment of any fee for the license, registration, or certification established as a condition to
408     do business in that local jurisdiction.
409          (2) The division shall issue licenses under this chapter to qualified persons in the
410     following classifications:
411          (a) general engineering contractor;
412          (b) general building contractor;
413          (c) residential and small commercial contractor;
414          (d) elevator contractor;
415          (e) general plumbing contractor;
416          (f) residential plumbing contractor;
417          (g) general electrical contractor;
418          (h) residential electrical contractor;
419          (i) specialty contractor;
420          (j) master plumber;
421          (k) residential master plumber;
422          (l) journeyman plumber;
423          (m) apprentice plumber;
424          (n) residential journeyman plumber;
425          (o) master electrician;
426          (p) residential master electrician;
427          (q) journeyman electrician;
428          (r) residential journeyman electrician;
429          (s) apprentice electrician;
430          (t) construction trades instructor:

431          (i) general engineering classification;
432          (ii) general building classification;
433          (iii) electrical classification;
434          (iv) plumbing classification; and
435          (v) mechanical classification;
436          (u) alarm company;
437          (v) alarm company agent; [and]
438          (w) elevator mechanic[.];
439          (x) automatic fire sprinkler contractor;
440          (y) journeyman automatic sprinkler contractor; and
441          (z) automatic fire sprinkler apprentice.
442          (3) (a) An applicant may apply for a license in one or more classification or specialty
443     contractor subclassification.
444          (b) A license shall be granted in each classification or subclassification for which the
445     applicant qualifies.
446          (c) A separate application and fee must be submitted for each license classification or
447     subclassification.
448          Section 4. Section 58-55-302 is amended to read:
449          58-55-302. Qualifications for licensure.
450          (1) Each applicant for a license under this chapter shall:
451          (a) submit an application prescribed by the division;
452          (b) pay a fee as determined by the department under Section 63J-1-504;
453          (c) (i) meet the examination requirements established by rule by the commission with
454     the concurrence of the director, except that no examination, other than an examination as part
455     of a 25-hour course described in Subsection (1)(e)(iii), is required for licensure as an apprentice
456     electrician, apprentice plumber, automatic fire sprinkler apprentice, or specialty contractor; or
457          (ii) if required in Section 58-55-304, the individual qualifier must pass the required
458     examination if the applicant is a business entity;
459          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
460          (e) if an applicant for a contractor's license:
461          (i) produce satisfactory evidence of financial responsibility, except for a construction

462     trades instructor for whom evidence of financial responsibility is not required;
463          (ii) produce satisfactory evidence of:
464          (A) except as provided in Subsection (2)(a), and except that no employment experience
465     is required for licensure as a specialty contractor, two years full-time paid employment
466     experience in the construction industry, which employment experience may be related to any
467     contracting classification unless more specifically described in this section; and
468          (B) knowledge of the principles of the conduct of business as a contractor, reasonably
469     necessary for the protection of the public health, safety, and welfare;
470          (iii) except as otherwise provided by rule by the commission with the concurrence of
471     the director, complete a 25-hour course established by rule by the commission with the
472     concurrence of the director, which is taught by an approved prelicensure course provider, and
473     which course may include:
474          (A) construction business practices;
475          (B) bookkeeping fundamentals;
476          (C) mechanics lien fundamentals;
477          (D) other aspects of business and construction principles considered important by the
478     commission with the concurrence of the director; and
479          (E) for no additional fee, an examination at the end of the 25-hour course;
480          (iv) (A) be a licensed master electrician if an applicant for an electrical contractor's
481     license or a licensed master residential electrician if an applicant for a residential electrical
482     contractor's license;
483          (B) be a licensed master plumber if an applicant for a plumbing contractor's license or
484     a licensed master residential plumber if an applicant for a residential plumbing contractor's
485     license; or
486          (C) be a licensed elevator mechanic and produce satisfactory evidence of three years
487     experience as an elevator mechanic if an applicant for an elevator contractor's license; and
488          (v) when the applicant is an unincorporated entity, provide a list of the one or more
489     individuals who hold an ownership interest in the applicant as of the day on which the
490     application is filed that includes for each individual:
491          (A) the individual's name, address, birth date, and social security number; and
492          (B) whether the individual will engage in a construction trade; and

493          (f) if an applicant for a construction trades instructor license, satisfy any additional
494     requirements established by rule.
495          (2) (a) If the applicant for a contractor's license described in Subsection (1) is a
496     building inspector, the applicant may satisfy Subsection (1)(e)(ii)(A) by producing satisfactory
497     evidence of two years full-time paid employment experience as a building inspector, which
498     shall include at least one year full-time experience as a licensed combination inspector.
499          (b) After approval of an applicant for a contractor's license by the applicable board and
500     the division, the applicant shall file the following with the division before the division issues
501     the license:
502          (i) proof of workers' compensation insurance which covers employees of the applicant
503     in accordance with applicable Utah law;
504          (ii) proof of public liability insurance in coverage amounts and form established by rule
505     except for a construction trades instructor for whom public liability insurance is not required;
506     and
507          (iii) proof of registration as required by applicable law with the:
508          (A) Department of Commerce;
509          (B) Division of Corporations and Commercial Code;
510          (C) Unemployment Insurance Division in the Department of Workforce Services, for
511     purposes of Title 35A, Chapter 4, Employment Security Act;
512          (D) State Tax Commission; and
513          (E) Internal Revenue Service.
514          (3) In addition to the general requirements for each applicant in Subsection (1),
515     applicants shall comply with the following requirements to be licensed in the following
516     classifications:
517          (a) (i) A master plumber shall produce satisfactory evidence that the applicant:
518          (A) has been a licensed journeyman plumber for at least two years and had two years of
519     supervisory experience as a licensed journeyman plumber in accordance with division rule;
520          (B) has received at least an associate of applied science degree or similar degree
521     following the completion of a course of study approved by the division and had one year of
522     supervisory experience as a licensed journeyman plumber in accordance with division rule; or
523          (C) meets the qualifications determined by the division in collaboration with the board

524     to be equivalent to Subsection (3)(a)(i)(A) or (B).
525          (ii) An individual holding a valid Utah license as a journeyman plumber, based on at
526     least four years of practical experience as a licensed apprentice under the supervision of a
527     licensed journeyman plumber and four years as a licensed journeyman plumber, in effect
528     immediately prior to May 5, 2008, is on and after May 5, 2008, considered to hold a current
529     master plumber license under this chapter, and satisfies the requirements of this Subsection
530     (3)(a) for the purpose of renewal or reinstatement of that license under Section 58-55-303.
531          (iii) An individual holding a valid plumbing contractor's license or residential
532     plumbing contractor's license, in effect immediately prior to May 5, 2008, is on or after May 5,
533     2008:
534          (A) considered to hold a current master plumber license under this chapter if licensed
535     as a plumbing contractor and a journeyman plumber, and satisfies the requirements of this
536     Subsection (3)(a) for purposes of renewal or reinstatement of that license under Section
537     58-55-303; and
538          (B) considered to hold a current residential master plumber license under this chapter if
539     licensed as a residential plumbing contractor and a residential journeyman plumber, and
540     satisfies the requirements of this Subsection (3)(a) for purposes of renewal or reinstatement of
541     that license under Section 58-55-303.
542          (b) A master residential plumber applicant shall produce satisfactory evidence that the
543     applicant:
544          (i) has been a licensed residential journeyman plumber for at least two years and had
545     two years of supervisory experience as a licensed residential journeyman plumber in
546     accordance with division rule; or
547          (ii) meets the qualifications determined by the division in collaboration with the board
548     to be equivalent to Subsection (3)(b)(i).
549          (c) A journeyman plumber applicant shall produce satisfactory evidence of:
550          (i) successful completion of the equivalent of at least four years of full-time training
551     and instruction as a licensed apprentice plumber under supervision of a licensed master
552     plumber or journeyman plumber and in accordance with a planned program of training
553     approved by the division;
554          (ii) at least eight years of full-time experience approved by the division in collaboration

555     with the Plumbers Licensing Board; or
556          (iii) satisfactory evidence of meeting the qualifications determined by the board to be
557     equivalent to Subsection (3)(c)(i) or (c)(ii).
558          (d) A residential journeyman plumber shall produce satisfactory evidence of:
559          (i) completion of the equivalent of at least three years of full-time training and
560     instruction as a licensed apprentice plumber under the supervision of a licensed residential
561     master plumber, licensed residential journeyman plumber, or licensed journeyman plumber in
562     accordance with a planned program of training approved by the division;
563          (ii) completion of at least six years of full-time experience in a maintenance or repair
564     trade involving substantial plumbing work; or
565          (iii) meeting the qualifications determined by the board to be equivalent to Subsection
566     (3)(d)(i) or (d)(ii).
567          (e) The conduct of licensed apprentice plumbers and their licensed supervisors shall be
568     in accordance with the following:
569          (i) while engaging in the trade of plumbing, a licensed apprentice plumber shall be
570     under the immediate supervision of a licensed master plumber, licensed residential master
571     plumber, licensed journeyman plumber, or a licensed residential journeyman plumber; and
572          (ii) a licensed apprentice plumber in the fourth through tenth year of training may work
573     without supervision for a period not to exceed eight hours in any 24-hour period, but if the
574     apprentice does not become a licensed journeyman plumber or licensed residential journeyman
575     plumber by the end of the tenth year of apprenticeship, this nonsupervision provision no longer
576     applies.
577          (f) A master electrician applicant shall produce satisfactory evidence that the applicant:
578          (i) is a graduate electrical engineer of an accredited college or university approved by
579     the division and has one year of practical electrical experience as a licensed apprentice
580     electrician;
581          (ii) is a graduate of an electrical trade school, having received an associate of applied
582     sciences degree following successful completion of a course of study approved by the division,
583     and has two years of practical experience as a licensed journeyman electrician;
584          (iii) has four years of practical experience as a journeyman electrician; or
585          (iv) meets the qualifications determined by the board to be equivalent to Subsection

586     (3)(f)(i), (ii), or (iii).
587          (g) A master residential electrician applicant shall produce satisfactory evidence that
588     the applicant:
589          (i) has at least two years of practical experience as a residential journeyman electrician;
590     or
591          (ii) meets the qualifications determined by the board to be equivalent to this practical
592     experience.
593          (h) A journeyman electrician applicant shall produce satisfactory evidence that the
594     applicant:
595          (i) has successfully completed at least four years of full-time training and instruction as
596     a licensed apprentice electrician under the supervision of a master electrician or journeyman
597     electrician and in accordance with a planned training program approved by the division;
598          (ii) has at least eight years of full-time experience approved by the division in
599     collaboration with the Electricians Licensing Board; or
600          (iii) meets the qualifications determined by the board to be equivalent to Subsection
601     (3)(h)(i) or (ii).
602          (i) A residential journeyman electrician applicant shall produce satisfactory evidence
603     that the applicant:
604          (i) has successfully completed two years of training in an electrical training program
605     approved by the division;
606          (ii) has four years of practical experience in wiring, installing, and repairing electrical
607     apparatus and equipment for light, heat, and power under the supervision of a licensed master,
608     journeyman, residential master, or residential journeyman electrician; or
609          (iii) meets the qualifications determined by the division and applicable board to be
610     equivalent to Subsection (3)(i)(i) or (ii).
611          (j) The conduct of licensed apprentice electricians and their licensed supervisors shall
612     be in accordance with the following:
613          (i) A licensed apprentice electrician shall be under the immediate supervision of a
614     licensed master, journeyman, residential master, or residential journeyman electrician. An
615     apprentice in the fourth year of training may work without supervision for a period not to
616     exceed eight hours in any 24-hour period.

617          (ii) A licensed master, journeyman, residential master, or residential journeyman
618     electrician may have under immediate supervision on a residential project up to three licensed
619     apprentice electricians.
620          (iii) A licensed master or journeyman electrician may have under immediate
621     supervision on nonresidential projects only one licensed apprentice electrician.
622          (k) An alarm company applicant shall:
623          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
624     the applicant who:
625          (A) demonstrates 6,000 hours of experience in the alarm company business;
626          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
627     company business or in a construction business; and
628          (C) passes an examination component established by rule by the commission with the
629     concurrence of the director;
630          (ii) if a corporation, provide:
631          (A) the names, addresses, dates of birth, social security numbers, and fingerprint cards
632     of all corporate officers, directors, and those responsible management personnel employed
633     within the state or having direct responsibility for managing operations of the applicant within
634     the state; and
635          (B) the names, addresses, dates of birth, social security numbers, and fingerprint cards
636     of all shareholders owning 5% or more of the outstanding shares of the corporation, except this
637     shall not be required if the stock is publicly listed and traded;
638          (iii) if a limited liability company, provide:
639          (A) the names, addresses, dates of birth, social security numbers, and fingerprint cards
640     of all company officers, and those responsible management personnel employed within the
641     state or having direct responsibility for managing operations of the applicant within the state;
642     and
643          (B) the names, addresses, dates of birth, social security numbers, and fingerprint cards
644     of all individuals owning 5% or more of the equity of the company;
645          (iv) if a partnership, provide the names, addresses, dates of birth, social security
646     numbers, and fingerprint cards of all general partners, and those responsible management
647     personnel employed within the state or having direct responsibility for managing operations of

648     the applicant within the state;
649          (v) if a proprietorship, provide the names, addresses, dates of birth, social security
650     numbers, and fingerprint cards of the proprietor, and those responsible management personnel
651     employed within the state or having direct responsibility for managing operations of the
652     applicant within the state;
653          (vi) if a trust, provide the names, addresses, dates of birth, social security numbers, and
654     fingerprint cards of the trustee, and those responsible management personnel employed within
655     the state or having direct responsibility for managing operations of the applicant within the
656     state;
657          (vii) be of good moral character in that officers, directors, shareholders described in
658     Subsection (3)(k)(ii)(B), partners, proprietors, trustees, and responsible management personnel
659     have not been convicted of a felony, a misdemeanor involving moral turpitude, or any other
660     crime that when considered with the duties and responsibilities of an alarm company is
661     considered by the board to indicate that the best interests of the public are served by granting
662     the applicant a license;
663          (viii) document that none of the applicant's officers, directors, shareholders described
664     in Subsection (3)(k)(ii)(B), partners, proprietors, trustees, and responsible management
665     personnel have been declared by any court of competent jurisdiction incompetent by reason of
666     mental defect or disease and not been restored;
667          (ix) document that none of the applicant's officers, directors, shareholders described in
668     Subsection (3)(k)(ii)(B), partners, proprietors, and responsible management personnel are
669     currently suffering from habitual drunkenness or from drug addiction or dependence;
670          (x) file and maintain with the division evidence of:
671          (A) comprehensive general liability insurance in form and in amounts to be established
672     by rule by the commission with the concurrence of the director;
673          (B) workers' compensation insurance that covers employees of the applicant in
674     accordance with applicable Utah law; and
675          (C) registration as is required by applicable law with the:
676          (I) Division of Corporations and Commercial Code;
677          (II) Unemployment Insurance Division in the Department of Workforce Services, for
678     purposes of Title 35A, Chapter 4, Employment Security Act;

679          (III) State Tax Commission; and
680          (IV) Internal Revenue Service; and
681          (xi) meet with the division and board.
682          (l) Each applicant for licensure as an alarm company agent shall:
683          (i) submit an application in a form prescribed by the division accompanied by
684     fingerprint cards;
685          (ii) pay a fee determined by the department under Section 63J-1-504;
686          (iii) be of good moral character in that the applicant has not been convicted of a felony,
687     a misdemeanor involving moral turpitude, or any other crime that when considered with the
688     duties and responsibilities of an alarm company agent is considered by the board to indicate
689     that the best interests of the public are served by granting the applicant a license;
690          (iv) not have been declared by any court of competent jurisdiction incompetent by
691     reason of mental defect or disease and not been restored;
692          (v) not be currently suffering from habitual drunkenness or from drug addiction or
693     dependence; and
694          (vi) meet with the division and board if requested by the division or the board.
695          (m) (i) Each applicant for licensure as an elevator mechanic shall:
696          (A) provide documentation of experience and education credits of not less than three
697     years work experience in the elevator industry, in construction, maintenance, or service and
698     repair; and
699          (B) satisfactorily complete a written examination administered by the division
700     established by rule under Section 58-1-203; or
701          (C) provide certificates of completion of an apprenticeship program for elevator
702     mechanics, having standards substantially equal to those of this chapter and registered with the
703     United States Department of Labor Bureau Apprenticeship and Training or a state
704     apprenticeship council.
705          (ii) (A) If an elevator contractor licensed under this chapter cannot find a licensed
706     elevator mechanic to perform the work of erecting, constructing, installing, altering, servicing,
707     repairing, or maintaining an elevator, the contractor may:
708          (I) notify the division of the unavailability of licensed personnel; and
709          (II) request the division issue a temporary elevator mechanic license to an individual

710     certified by the contractor as having an acceptable combination of documented experience and
711     education to perform the work described in this Subsection (3)(m)(ii)(A).
712          (B) (I) The division may issue a temporary elevator mechanic license to an individual
713     certified under Subsection (3)(m)(ii)(A)(II) upon application by the individual, accompanied by
714     the appropriate fee as determined by the department under Section 63J-1-504.
715          (II) The division shall specify the time period for which the license is valid and may
716     renew the license for an additional time period upon its determination that a shortage of
717     licensed elevator mechanics continues to exist.
718          (n) Each applicant for licensure as an automatic fire sprinkler contractor shall:
719          (i) submit an application in a form prescribed by the division;
720          (ii) provide evidence of:
721          (A) completing a level III certification in fire protection and automatic fire sprinkler
722     system layout from the National Institute for Certification in Engineering Technologies;
723          (B) at least three years of full-time experience as a journeyman automatic sprinkler
724     contractor; or
725          (C) holding a bachelor's degree or higher in civil engineering, mechanical engineering,
726     or other engineering degree approved by the division that is related to automatic fire sprinkler
727     systems; and
728          (iii) take and pass a written examination that is approved by the division established by
729     rule under Section 58-1-203.
730          (o) Each applicant for licensure as a journeyman automatic sprinkler contractor shall:
731          (i) submit an application in a form prescribed by the division;
732          (ii) provide evidence of at least three years of full-time experience as an automatic fire
733     sprinkler apprentice; and
734          (iii) take and pass a written examination that is approved by the division established by
735     rule under Section 58-1-203.
736          (p) Each applicant for licensure as an automatic fire sprinkler apprentice shall submit
737     an application in a form prescribed by the division.
738          (q) (i) An automatic fire sprinkler apprentice shall be under the immediate supervision
739     of an automatic fire sprinkler contractor or a journeyman automatic sprinkler contractor.
740          (ii) A journeyman automatic sprinkler contractor shall be under the general supervision

741     of an automatic fire sprinkler contractor.
742          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
743     division may make rules establishing when Federal Bureau of Investigation records shall be
744     checked for applicants as an alarm company or alarm company agent.
745          (5) To determine if an applicant meets the qualifications of Subsections (3)(k)(vii) and
746     (3)(l)(iii), the division shall provide an appropriate number of copies of fingerprint cards to the
747     Department of Public Safety with the division's request to:
748          (a) conduct a search of records of the Department of Public Safety for criminal history
749     information relating to each applicant for licensure as an alarm company or alarm company
750     agent and each applicant's officers, directors, shareholders described in Subsection
751     (3)(k)(ii)(B), partners, proprietors, and responsible management personnel; and
752          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
753     requiring a check of records of the Federal Bureau of Investigation for criminal history
754     information under this section.
755          (6) The Department of Public Safety shall send to the division:
756          (a) a written record of criminal history, or certification of no criminal history record, as
757     contained in the records of the Department of Public Safety in a timely manner after receipt of
758     a fingerprint card from the division and a request for review of Department of Public Safety
759     records; and
760          (b) the results of the Federal Bureau of Investigation review concerning an applicant in
761     a timely manner after receipt of information from the Federal Bureau of Investigation.
762          (7) (a) The division shall charge each applicant for licensure as an alarm company or
763     alarm company agent a fee, in accordance with Section 63J-1-504, equal to the cost of
764     performing the records reviews under this section.
765          (b) The division shall pay the Department of Public Safety the costs of all records
766     reviews, and the Department of Public Safety shall pay the Federal Bureau of Investigation the
767     costs of records reviews under this section.
768          (8) Information obtained by the division from the reviews of criminal history records of
769     the Department of Public Safety and the Federal Bureau of Investigation shall be used or
770     disseminated by the division only for the purpose of determining if an applicant for licensure as
771     an alarm company or alarm company agent is qualified for licensure.

772          (9) (a) An application for licensure under this chapter shall be denied if:
773          (i) the applicant has had a previous license, which was issued under this chapter,
774     suspended or revoked within two years before the date of the applicant's application;
775          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
776          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
777     applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
778     status, performing similar functions, or directly or indirectly controlling the applicant has
779     served in any similar capacity with any person or entity which has had a previous license,
780     which was issued under this chapter, suspended or revoked within two years before the date of
781     the applicant's application;
782          (iii) (A) the applicant is an individual or sole proprietorship; and
783          (B) any owner or agent acting as a qualifier has served in any capacity listed in
784     Subsection (9)(a)(ii)(B) in any entity which has had a previous license, which was issued under
785     this chapter, suspended or revoked within two years before the date of the applicant's
786     application; or
787          (iv) (A) the applicant includes an individual who was an owner, director, or officer of
788     an unincorporated entity at the time the entity's license under this chapter was revoked; and
789          (B) the application for licensure is filed within 60 months after the revocation of the
790     unincorporated entity's license.
791          (b) An application for licensure under this chapter shall be reviewed by the appropriate
792     licensing board prior to approval if:
793          (i) the applicant has had a previous license, which was issued under this chapter,
794     suspended or revoked more than two years before the date of the applicant's application;
795          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
796          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
797     applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
798     status, performing similar functions, or directly or indirectly controlling the applicant has
799     served in any similar capacity with any person or entity which has had a previous license,
800     which was issued under this chapter, suspended or revoked more than two years before the date
801     of the applicant's application; or
802          (iii) (A) the applicant is an individual or sole proprietorship; and

803          (B) any owner or agent acting as a qualifier has served in any capacity listed in
804     Subsection (9)(b)(ii)(B) in any entity which has had a previous license, which was issued under
805     this chapter, suspended or revoked more than two years before the date of the applicant's
806     application.
807          (10) (a) (i) A licensee that is an unincorporated entity shall file an ownership status
808     report with the division every 30 days after the day on which the license is issued if the licensee
809     has more than five owners who are individuals who:
810          (A) own an interest in the contractor that is an unincorporated entity;
811          (B) own, directly or indirectly, less than an 8% interest, as defined by rule made by the
812     division in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, in the
813     unincorporated entity; and
814          (C) engage, or will engage, in a construction trade in the state as owners of the
815     contractor described in Subsection (10)(a)(i)(A).
816          (ii) If the licensee has five or fewer owners described in Subsection (10)(a)(i), the
817     licensee shall provide the ownership status report with an application for renewal of licensure.
818          (b) An ownership status report required under this Subsection (10) shall:
819          (i) specify each addition or deletion of an owner:
820          (A) for the first ownership status report, after the day on which the unincorporated
821     entity is licensed under this chapter; and
822          (B) for a subsequent ownership status report, after the day on which the previous
823     ownership status report is filed;
824          (ii) be in a format prescribed by the division that includes for each owner, regardless of
825     the owner's percentage ownership in the unincorporated entity, the information described in
826     Subsection(1)(e)(v);
827          (iii) list the name of:
828          (A) each officer or manager of the unincorporated entity; and
829          (B) each other individual involved in the operation, supervision, or management of the
830     unincorporated entity; and
831          (iv) be accompanied by a fee set by the division in accordance with Section 63J-1-504
832     if the ownership status report indicates there is a change described in Subsection (10)(b)(i).
833          (c) The division may, at any time, audit an ownership status report under this

834     Subsection (10):
835          (i) to determine if financial responsibility has been demonstrated or maintained as
836     required under Section 58-55-306; and
837          (ii) to determine compliance with Subsection 58-55-501(24), (25), or (27) or
838     Subsection 58-55-502(8) or (9).
839          (11) (a) An unincorporated entity that provides labor to an entity licensed under this
840     chapter by providing an individual who owns an interest in the unincorporated entity to engage
841     in a construction trade in Utah shall file with the division:
842          (i) before the individual who owns an interest in the unincorporated entity engages in a
843     construction trade in Utah, a current list of the one or more individuals who hold an ownership
844     interest in the unincorporated entity that includes for each individual:
845          (A) the individual's name, address, birth date, and social security number; and
846          (B) whether the individual will engage in a construction trade; and
847          (ii) every 30 days after the day on which the unincorporated entity provides the list
848     described in Subsection (11)(a)(i), an ownership status report containing the information that
849     would be required under Subsection (10) if the unincorporated entity were a licensed
850     contractor.
851          (b) When filing an ownership list described in Subsection (11)(a)(i) or an ownership
852     status report described in Subsection (11)(a)(ii), an unincorporated entity shall pay a fee set by
853     the division in accordance with Section 63J-1-504.
854          (12) This chapter may not be interpreted to create or support an express or implied
855     independent contractor relationship between an unincorporated entity described in Subsection
856     (10) or (11) and the owners of the unincorporated entity for any purpose, including income tax
857     withholding.
858          (13) A social security number provided under Subsection (1)(e)(v) is a private record
859     under Subsection 63G-2-302(1)(i).
860          Section 5. Section 58-55-305 is amended to read:
861          58-55-305. Exemptions from licensure.
862          (1) In addition to the exemptions from licensure in Section 58-1-307, the following
863     persons may engage in acts or practices included within the practice of construction trades,
864     subject to the stated circumstances and limitations, without being licensed under this chapter:

865          (a) an authorized representative of the United States government or an authorized
866     employee of the state or any of its political subdivisions when working on construction work of
867     the state or the subdivision, and when acting within the terms of the person's trust, office, or
868     employment;
869          (b) a person engaged in construction or operation incidental to the construction and
870     repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
871     districts, and drainage districts or construction and repair relating to farming, dairying,
872     agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
873     excavations, well drilling, as defined in Section 73-3-25, hauling to and from construction
874     sites, and lumbering;
875          (c) public utilities operating under the rules of the Public Service Commission on work
876     incidental to their own business;
877          (d) sole owners of property engaged in building:
878          (i) no more than one residential structure per year and no more than three residential
879     structures per five years on their property for their own noncommercial, nonpublic use; except,
880     a person other than the property owner or individuals described in Subsection (1)(e), who
881     engages in building the structure must be licensed under this chapter if the person is otherwise
882     required to be licensed under this chapter; or
883          (ii) structures on their property for their own noncommercial, nonpublic use which are
884     incidental to a residential structure on the property, including sheds, carports, or detached
885     garages;
886          (e) (i) a person engaged in construction or renovation of a residential building for
887     noncommercial, nonpublic use if that person:
888          (A) works without compensation other than token compensation that is not considered
889     salary or wages; and
890          (B) works under the direction of the property owner who engages in building the
891     structure; and
892          (ii) as used in this Subsection (1)(e), "token compensation" means compensation paid
893     by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
894     exempted from licensure under this Subsection (1)(e), that is:
895          (A) minimal in value when compared with the fair market value of the services

896     provided by the person;
897          (B) not related to the fair market value of the services provided by the person; and
898          (C) is incidental to the providing of services by the person including paying for or
899     providing meals or refreshment while services are being provided, or paying reasonable
900     transportation costs incurred by the person in travel to the site of construction;
901          (f) a person engaged in the sale or merchandising of personal property that by its design
902     or manufacture may be attached, installed, or otherwise affixed to real property who has
903     contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
904     attach that property;
905          (g) a contractor submitting a bid on a federal aid highway project, if, before
906     undertaking construction under that bid, the contractor is licensed under this chapter;
907          (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
908     improvement of a building with a contracted or agreed value of less than $3,000, including
909     both labor and materials, and including all changes or additions to the contracted or agreed
910     upon work; and
911          (ii) notwithstanding Subsection (1)(h)(i) and except as otherwise provided in this
912     section:
913          (A) work in the plumbing and electrical trades on a Subsection (1)(h)(i) project within
914     any six month period of time:
915          (I) must be performed by a licensed electrical or plumbing contractor, if the project
916     involves an electrical or plumbing system; and
917          (II) may be performed by a licensed journeyman electrician or plumber or an individual
918     referred to in Subsection (1)(h)(ii)(A)(I), if the project involves a component of the system
919     such as a faucet, toilet, fixture, device, outlet, or electrical switch;
920          (B) installation, repair, or replacement of a residential or commercial gas appliance or a
921     combustion system on a Subsection (1)(h)(i) project must be performed by a person who has
922     received certification under Subsection 58-55-308(2) except as otherwise provided in
923     Subsection 58-55-308(2)(d) or 58-55-308(3);
924          (C) installation, repair, or replacement of water-based fire protection systems on a
925     Subsection (1)(h)(i) project must be performed by a licensed fire suppression systems
926     contractor or a licensed journeyman plumber;

927          (D) work as an alarm business or company or as an alarm company agent shall be
928     performed by a licensed alarm business or company or a licensed alarm company agent, except
929     as otherwise provided in this chapter;
930          (E) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i)
931     project must be performed by a licensed alarm business or company or a licensed alarm
932     company agent;
933          (F) installation, repair, or replacement of a heating, ventilation, or air conditioning
934     system (HVAC) on a Subsection (1)(h)(i) project must be performed by an HVAC contractor
935     licensed by the division;
936          (G) installation, repair, or replacement of a radon mitigation system or a soil
937     depressurization system must be performed by a licensed contractor; and
938          (H) if the total value of the project is greater than $1,000, the person shall file with the
939     division a one-time affirmation, subject to periodic reaffirmation as established by division
940     rule, that the person has:
941          (I) public liability insurance in coverage amounts and form established by division
942     rule; and
943          (II) if applicable, workers compensation insurance which would cover an employee of
944     the person if that employee worked on the construction project;
945          (i) a person practicing a specialty contractor classification or construction trade which
946     the director does not classify by administrative rule as significantly impacting the public's
947     health, safety, and welfare;
948          (j) owners and lessees of property and persons regularly employed for wages by owners
949     or lessees of property or their agents for the purpose of maintaining the property, are exempt
950     from this chapter when doing work upon the property;
951          (k) (i) a person engaged in minor plumbing work that is incidental, as defined by the
952     division by rule, to the replacement or repair of a fixture or an appliance in a residential or
953     small commercial building, or structure used for agricultural use, as defined in Section
954     15A-1-202, provided that no modification is made to:
955          (A) existing culinary water, soil, waste, or vent piping; or
956          (B) a gas appliance or combustion system; and
957          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or

958     an appliance is not included in the exemption provided under Subsection (1)(k)(i);
959          (l) a person who ordinarily would be subject to the plumber licensure requirements
960     under this chapter when installing or repairing a water conditioner or other water treatment
961     apparatus if the conditioner or apparatus:
962          (i) meets the appropriate state construction codes or local plumbing standards; and
963          (ii) is installed or repaired under the direction of a person authorized to do the work
964     under an appropriate specialty contractor license;
965          (m) a person who ordinarily would be subject to the electrician licensure requirements
966     under this chapter when employed by:
967          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
968     contractors or constructors, or street railway systems; or
969          (ii) public service corporations, rural electrification associations, or municipal utilities
970     who generate, distribute, or sell electrical energy for light, heat, or power;
971          (n) a person involved in minor electrical work incidental to a mechanical or service
972     installation, including the outdoor installation of an above-ground, prebuilt hot tub;
973          (o) a person who ordinarily would be subject to the electrician licensure requirements
974     under this chapter but who during calendar years 2009, 2010, or 2011 was issued a specialty
975     contractor license for the electrical work associated with the installation, repair, or maintenance
976     of solar energy panels, may continue the limited electrical work for solar energy panels under a
977     specialty contractor license;
978          (p) a student participating in construction trade education and training programs
979     approved by the commission with the concurrence of the director under the condition that:
980          (i) all work intended as a part of a finished product on which there would normally be
981     an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
982     building inspector; and
983          (ii) a licensed contractor obtains the necessary building permits;
984          (q) a delivery person when replacing any of the following existing equipment with a
985     new gas appliance, provided there is an existing gas shutoff valve at the appliance:
986          (i) gas range;
987          (ii) gas dryer;
988          (iii) outdoor gas barbeque; or

989          (iv) outdoor gas patio heater;
990          (r) a person performing maintenance on an elevator as defined in [Subsection] Section
991     58-55-102[(14)], if the maintenance is not related to the operating integrity of the elevator; and
992          (s) an apprentice or helper of an elevator mechanic licensed under this chapter when
993     working under the general direction of the licensed elevator mechanic.
994          (2) A compliance agency as defined in Section 15A-1-202 that issues a building permit
995     to a person requesting a permit as a sole owner of property referred to in Subsection (1)(d) shall
996     notify the division, in writing or through electronic transmission, of the issuance of the permit.






Legislative Review Note
Office of Legislative Research and General Counsel