<section number="58-55-502"><effdate>5/6/2026</effdate><enddate type="SC">1/1/2027</enddate><histories><history>Amended by Chapter <modchap sess="2026GS">198</modchap>, 2026 General Session</history><modyear>2026</modyear></histories><catchline>Unprofessional conduct.</catchline><tab/>Unprofessional conduct includes:<subsection number="58-55-502(1)">failing to establish, maintain, or demonstrate financial responsibility while licensed as a contractor under this chapter;</subsection><subsection number="58-55-502(2)">disregarding or violating through gross negligence or a pattern of negligence:<subsection number="58-55-502(2)(a)">the building or construction laws of this state or any political subdivision;</subsection><subsection number="58-55-502(2)(b)">the safety and labor laws applicable to a project;</subsection><subsection number="58-55-502(2)(c)">any provision of the health laws applicable to a project;</subsection><subsection number="58-55-502(2)(d)">the workers' compensation insurance laws of this state applicable to a project;</subsection><subsection number="58-55-502(2)(e)">the laws governing withholdings for employee state and federal income taxes, unemployment taxes, Social Security payroll taxes, or other required withholdings; or</subsection><subsection number="58-55-502(2)(f)">any reporting, notification, and filing laws of this state or the federal government;</subsection></subsection><subsection number="58-55-502(3)">any willful, fraudulent, or deceitful act by a licensee, caused by a licensee, or at a licensee's direction which causes material injury to another;</subsection><subsection number="58-55-502(4)">contract violations that pose a threat or potential threat to the public health, safety, and welfare including:<subsection number="58-55-502(4)(a)">willful, deliberate, or grossly negligent departure from or disregard for plans or specifications, or abandonment or failure to complete a project without the consent of the owner or the owner's duly authorized representative or the consent of any other person entitled to have the particular project completed in accordance with the plans, specifications, and contract terms;</subsection><subsection number="58-55-502(4)(b)">failure to deposit funds to the benefit of an employee as required under any written contractual obligation the licensee has to the employee;</subsection><subsection number="58-55-502(4)(c)">failure to maintain in full force and effect any health insurance benefit to an employee that was extended as a part of any written contractual obligation or representation by the licensee, unless the employee is given written notice of the licensee's intent to cancel or reduce the insurance benefit at least 45 days before the effective date of the cancellation or reduction;</subsection><subsection number="58-55-502(4)(d)">failure to reimburse the Residence Lien Recovery Fund as required by Section <xref depth="3" refnumber="38-11-207" start="0">38-11-207</xref>;</subsection><subsection number="58-55-502(4)(e)">failure to provide, when applicable, the information required by Section <xref depth="3" refnumber="38-11-108" start="0">38-11-108</xref>; and</subsection><subsection number="58-55-502(4)(f)">willfully or deliberately misrepresenting or omitting a material fact in connection with an application to claim recovery from the Residence Lien Recovery Fund under Section <xref depth="3" refnumber="38-11-204" start="0">38-11-204</xref>;</subsection></subsection><subsection number="58-55-502(5)">failing as an alarm company to notify the division of the cessation of performance of the alarm company's qualifying agent, or failing to replace the alarm company's qualifying agent as required under Section <xref depth="3" refnumber="58-55-304" start="0">58-55-304</xref>;</subsection><subsection number="58-55-502(6)">failing as an alarm company agent to carry or display a copy of the licensee's license as required under Section <xref depth="3" refnumber="58-55-311" start="0">58-55-311</xref>;</subsection><subsection number="58-55-502(7)">failing to comply with operating standards established by rule in accordance with Section <xref depth="3" refnumber="58-55-308" start="0">58-55-308</xref>;</subsection><subsection number="58-55-502(8)">an unincorporated entity licensed under this chapter having an individual who owns an interest in the unincorporated entity engage in a construction trade in Utah while not lawfully present in the United States;</subsection><subsection number="58-55-502(9)">an unincorporated entity failing to provide the following for an individual who engages, or will engage, in a construction trade in Utah for the unincorporated entity:<subsection number="58-55-502(9)(a)">workers' compensation coverage to the extent required by <xref depth="1" refnumber="34A-2" start="0">Title 34A, Chapter 2, Workers' Compensation Act</xref>, and <xref depth="1" refnumber="34A-3" start="0">Title 34A, Chapter 3, Utah Occupational Disease Act</xref>; and</subsection><subsection number="58-55-502(9)(b)">unemployment compensation in accordance with <xref depth="1" refnumber="35A-4" start="0">Title 35A, Chapter 4, Employment Security Act</xref>, for an individual who owns, directly or indirectly, less than an 8% interest in the unincorporated entity, as defined by rule made by the division in accordance with <xref depth="1" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>;</subsection></subsection><subsection number="58-55-502(10)">the failure of an alarm company or alarm company agent to inform a potential customer, before the customer's purchase of an alarm system or alarm service from the alarm company, of the policy of the county, city, or town within which the customer resides relating to priority levels for responding to an alarm signal transmitted by the alarm system that the alarm company provides the customer;</subsection><subsection number="58-55-502(11)">failing to continuously maintain insurance and registration as required under Subsection <xref depth="4" refnumber="58-55-302(2)" start="0">58-55-302(2)</xref>; or</subsection><subsection number="58-55-502(12)">failing to comply with Section <xref depth="3" refnumber="58-55-313">58-55-313</xref>.</subsection></section>