MINUTES OF THE

SENATE BUSINESS AND LABOR STANDING COMMITTEE

215 Senate Building, Utah State Capitol Complex

February 18, 2014

Members Present: Sen. Curtis S. Bramble, Chair

Sen. Gene Davis

Sen. Deidre Henderson

Sen. David P. Hinkins

Sen. Karen Mayne

Sen. John L. Valentine

Sen. Todd Weiler

Staff Present: Mr. Bryant Howe, Policy Analyst

Ms. Karen Allred, Committee Secretary

NOTE: A list of visitors and a copy of handouts are filed with the committee minutes.

Chair Bramble called the meeting to order at 2:18 p.m.

MOTION: Sen. Davis moved to approve the minutes of the February14, 2014 meeting. The motion passed unanimously with Sen. Henderson and Sen. Weiler absent for the vote.

H.B. 40 Beer Excise Tax Revenue Amendments (J. Draxler)

MOTION: Sen. Valentine moved to adopt 1^st Sub. H.B. 40. The motion passed unanimously with Sen. Henderson and Sen. Weiler absent for the vote.

Rep. Draxler explained the bill to the committee:

MOTION: Sen. Valentine moved to pass the bill out favorably. The motion passed unanimously with Sen. Henderson and Sen. Weiler absent for the vote.

MOTION: Sen. Valentine moved to place the bill on the Consent Calendar. The motion passed unanimously with Sen. Henderson and Sen. Weiler absent for the vote.

S.B. 186 Contractor Licensing and Continuing Education Amendments (W. Harper)

Sen. Harper explained the bill to the committee.

Spoke to the bill: Brent Ursenbach, Rocky Mountain Gas Association, Salt Lake County

MOTION: Sen. Mayne moved to amend the bill as follows:

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

22 Utah Code Sections Affected:

23 AMENDS:

24 , as last amended by Laws of Utah 2013, Chapter 36

25 , as last amended by Laws of Utah 2013, Chapters 57, 426, and 430

26 , as last amended by Laws of Utah 2013, Chapter 57}

27 , as last amended by Laws of Utah 2013, Chapters 430 and 449

28 {, as last amended by Laws of Utah 2013, Chapter 57}

29 , as last amended by Laws of Utah 2013, Chapter 57

30 {REPEALS: 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 (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 (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,

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 (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 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 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 trade requiring licensure;

847 (4) applying for or obtaining a building permit either for oneself or another when not 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 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 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 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 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 contractor's supervision;

867 (13) if licensed as a contractor or representing oneself to be a contractor, receiving any 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 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. }

The motion passed unanimously with Sen. Weiler absent for the vote.

MOTION: Sen. Mayne moved to pass the bill out favorably as amended. The motion passed unanimously with Sen. Weiler absent for the vote.

S.B. 189 Residence Lien Restriction Amendments (T. Weiler)

At the request of the sponsor the bill was not considered.

S.B. 191 Verification of Legal Status Amendments (J. Valentine)

The bill was not considered.

S.B. 190 Utility Fee Limitations (J. Valentine)

The bill was not considered.

H.B. 11 Overdose Reporting Amendments (C. Moss)

Rep. Moss explained the bill to the committee.

MOTION: Sen. Hinkins moved to pass the bill out favorably. The motion passed unanimously with Sen. Weiler absent for the vote.

S.B. 109 Radon Testing for Home Purchase (A. Osmond)

Sen. Osmond explained the bill to the committee.

MOTION: Sen. Valentine moved to adopt 2^nd Sub. S.B. 109. The motion passed unanimously with Sen. Weiler absent for the vote.

MOTION: Sen. Valentine moved to pass the bill out favorably. The motion passed unanimously with Sen. Weiler absent for the vote.

MOTION: Sen. Hinkins moved to adjourn. The motion passed unanimously with Sen. Weiler absent for the vote.

Chair Bramble adjourned the meeting at 2:43 p.m.

________________________

Sen. Curtis S. Bramble, Chair