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[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

Fourth Substitute H.B. 205

Representative Stephen D. Clark proposes the following substitute bill:


             1     
CONSTRUCTION SERVICES COMMISSION

             2     
2002 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Stephen D. Clark

             5      This act modifies the Occupations and Professions Code. The act creates the Construction
             6      Services Commission within the Division of Occupational and Professional Licensing. The
             7      act provides that the commission serve as a policy board for the construction trades. The act
             8      sets forth the composition of the commission, the manner of appointment, qualifications, and
             9      terms of commission members, and the duties of the commission. h [ Under the act, the
             10      Contractors Licensing Board members are the initial members of the commission and the
             11      Contractors Licensing Board becomes the commission.
] h
The act describes adjudicative
             12      proceedings. h [ The act eliminates the requirement that a licensee business entity have a
             13      qualifier licensee if the business entity has maintained its license and not violated the
             14      requirements of this chapter and certain predecessor statutory provisions for ten consecutive
             15      years.
] The act modifies the individual qualifier requirements. h
The act makes technical changes.
             15a      The act provides an effective date.
             16      This act affects sections of Utah Code Annotated 1953 as follows:
             17      AMENDS:
             18          58-1-202, as renumbered and amended by Chapter 297, Laws of Utah 1993
             19          58-1-203, as renumbered and amended by Chapter 297, Laws of Utah 1993
             20          58-55-102, as last amended by Chapters 233 and 317, Laws of Utah 2000
             21          58-55-201, as last amended by Chapter 317, Laws of Utah 2000
             22          58-55-302, as last amended by Chapter 198, Laws of Utah 2001
             23          58-55-304, as renumbered and amended by Chapter 181, Laws of Utah 1994
             24          58-55-305, as last amended by Chapter 227, Laws of Utah 2001
             25          58-55-306, as last amended by Chapter 233, Laws of Utah 2000


             26          58-55-307, as renumbered and amended by Chapter 181, Laws of Utah 1994
             27          58-55-308, as last amended by Chapter 317, Laws of Utah 2000
             28          58-55-503, as last amended by Chapters 198 and 361, Laws of Utah 2001
             29      ENACTS:
             30          58-55-103, Utah Code Annotated 1953
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 58-1-202 is amended to read:
             33           58-1-202. Boards -- Duties, functions, and responsibilities.
             34          (1) The duties, functions, and responsibilities of each board include the following:
             35          [(1)] (a) recommending to the director appropriate rules;
             36          [(2)] (b) recommending to the director policy and budgetary matters;
             37          [(3)] (c) approving and establishing a passing score for applicant examinations;
             38          [(4)] (d) screening applicants and recommending licensing, renewal, reinstatement, and
             39      relicensure actions to the director in writing;
             40          [(5)] (e) assisting the director in establishing standards of supervision for students or
             41      persons in training to become qualified to obtain a license in the occupation or profession it
             42      represents; and
             43          [(6)] (f) acting as presiding officer in conducting hearings associated with adjudicative
             44      proceedings and in issuing recommended orders when so designated by the director.
             45          (2) Subsection (1) does not apply to boards created in Title 58, Chapter 55, Construction
             46      Trades Licensing.
             47          Section 2. Section 58-1-203 is amended to read:
             48           58-1-203. Duties, functions, and responsibilities of division in collaboration with
             49      board -- Construction Services Commission.
             50          (1) The following duties, functions, and responsibilities of the division shall be performed
             51      by the division with the collaboration and assistance of the appropriate board:
             52          [(1)] (a) defining which schools, colleges, universities, departments of universities, or
             53      other institutions of learning are reputable and in good standing with the division;
             54          [(2)] (b) prescribing license qualifications;
             55          [(3)] (c) prescribing rules governing applications for licenses;
             56          [(4)] (d) providing for a fair and impartial method of examination of applicants;


             57          [(5)] (e) defining unprofessional conduct, by rule, to supplement the definitions under this
             58      chapter or other licensing chapters;
             59          [(6)] (f) establishing advisory peer committees to the board and prescribing their scope of
             60      authority; and
             61          [(7)] (g) establishing conditions for reinstatement and renewal of licenses.
             62          (2) Notwithstanding Subsection (1), the duties, functions, and responsibilities of the
             63      division outlined in Subsection (1) shall, instead, be performed by the Construction Services
             64      Commission for all purposes of Title 58, Chapter 55, Construction Trades Licensing.
             65          Section 3. Section 58-55-102 is amended to read:
             66           58-55-102. Definitions.
             67          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             68          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
             69      maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system.
             70          (b) "Alarm business or company" does not include the activities of:
             71          (i) a person engaged in the manufacture and sale of alarm systems when that person is not
             72      engaged in the installation, maintenance, alteration, repair, replacement, servicing, or monitoring
             73      of alarm systems, and the manufacture or sale occurs only at a place of business established by the
             74      person engaged in the manufacture or sale and does not involve site visits at the place or intended
             75      place of installation of an alarm system; or
             76          (ii) an owner of an alarm system, or an employee of the owner of an alarm system who is
             77      engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring of
             78      the alarm system owned by that owner.
             79          (2) "Alarm company agent" means any individual employed within this state by a person
             80      engaged in the alarm business.
             81          (3) "Alarm system" means equipment and devices assembled for the purpose of:
             82          (a) detecting and signaling unauthorized intrusion or entry into or onto certain premises;
             83      or
             84          (b) signaling a robbery or attempted robbery on protected premises.
             85          (4) "Apprentice electrician" means a person licensed under this chapter as an apprentice
             86      electrician who is learning the electrical trade under approved supervision of a master electrician,
             87      residential master electrician, a journeyman electrician, or a residential journeyman electrician.


             88          (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
             89      plumber who is learning the plumbing trade under approved supervision of a journeyman plumber.
             90          (6) "Approved supervision" means the immediate supervision of apprentices by qualified
             91      licensed electricians or plumbers as a part of a planned program of training.
             92          (7) "Board" means the [Contractors Licensing Board,] Electrician Licensing Board, Alarm
             93      System Security and Licensing Board, or Plumbers Licensing Board created in Section 58-55-201 .
             94          (8) "Commission" means the Construction Services Commission created under Section
             95      58-55-103 .
             96          [(8)] (9) "Construction trade" means any trade or occupation involving construction,
             97      alteration, remodeling, repairing, wrecking or demolition, addition to, or improvement of any
             98      building, highway, road, railroad, dam, bridge, structure, excavation or other project, development,
             99      or improvement to other than personal property.
             100          [(9)] (10) "Construction trades instructor" means a person licensed under this chapter to
             101      teach one or more construction trades in both a classroom and project environment, where a project
             102      is intended for sale to or use by the public and is completed under the direction of an instructor
             103      who has no economic interest in the project.
             104          [(10)] (11) (a) "Contractor" means any person who for compensation other than wages as
             105      an employee undertakes any work in the construction, plumbing, or electrical trade for which
             106      licensure is required under this chapter and includes:
             107          (i) a person who builds any structure on his own property for the purpose of sale or who
             108      builds any structure intended for public use on his own property;
             109          (ii) any person who represents himself to be a contractor by advertising or any other
             110      means;
             111          (iii) any person engaged as a maintenance person, other than an employee, who regularly
             112      engages in activities set forth under the definition of "construction trade";
             113          (iv) any person engaged in any construction trade for which licensure is required under this
             114      chapter; or
             115          (v) a construction manager who performs management and counseling services on a
             116      construction project for a fee.
             117          (b) "Contractor" does not include an alarm company or alarm company agent.
             118          [(11)] (12) (a) "Electrical trade" means the performance of any electrical work involved


             119      in the installation, construction, alteration, change, repair, removal, or maintenance of facilities,
             120      buildings, or appendages or appurtenances.
             121          (b) "Electrical trade" does not include:
             122          (i) transporting or handling electrical materials;
             123          (ii) preparing clearance for raceways for wiring; or
             124          (iii) work commonly done by unskilled labor or any installations under the exclusive
             125      control of electrical utilities.
             126          (c) For purposes of Subsection (11)(b):
             127          (i) no more than one unlicensed person may be so employed unless more than five licensed
             128      electricians are employed by the shop; and
             129          (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio permitted
             130      by this Subsection (11)(c).
             131          [(12)] (13) "Employee" means an individual as defined by the division by rule giving
             132      consideration to the definition adopted by the Internal Revenue Service and the Department of
             133      Workforce Services.
             134          [(13)] (14) "Engage in a construction trade" means to:
             135          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged in
             136      a construction trade; or
             137          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person to
             138      believe one is or will act as a contractor.
             139          [(14)] (15) "Financial responsibility" means a demonstration of a current and expected
             140      future condition of financial solvency evidencing a reasonable expectation to the division and the
             141      board that an applicant or licensee can successfully engage in business as a contractor without
             142      jeopardy to the public health, safety, and welfare. Financial responsibility may be determined by
             143      an evaluation of the total history concerning the licensee or applicant including past, present, and
             144      expected condition and record of financial solvency and business conduct.
             145          [(15)] (16) "General building contractor" means a person licensed under this chapter as a
             146      general building contractor qualified by education, training, experience, and knowledge to perform
             147      or superintend construction of structures for the support, shelter, and enclosure of persons, animals,
             148      chattels, or movable property of any kind or any of the components of that construction except
             149      plumbing, electrical, and mechanical, for which the general building contractor shall employ the


             150      services of a contractor licensed in the particular specialty, except that a general building
             151      contractor engaged in the construction of single-family and multifamily residences up to four units
             152      may perform the mechanical and hire a licensed plumber or electrician as an employee. The
             153      division may by rule exclude general building contractors from engaging in the performance of
             154      other construction specialties in which there is represented a substantial risk to the public health,
             155      safety, and welfare, and for which a license is required unless that general building contractor
             156      holds a valid license in that specialty classification.
             157          [(16)] (17) "General engineering contractor" means a person licensed under this chapter
             158      as a general engineering contractor qualified by education, training, experience, and knowledge
             159      to perform construction of fixed works in any or all of the following: irrigation, drainage, water,
             160      power, water supply, flood control, inland waterways, harbors, railroads, highways, tunnels,
             161      airports and runways, sewers and bridges, refineries, pipelines, chemical and industrial plants
             162      requiring specialized engineering knowledge and skill, piers, and foundations, or any of the
             163      components of those works. However, a general engineering contractor may not perform
             164      construction of structures built primarily for the support, shelter, and enclosure of persons,
             165      animals, and chattels.
             166          [(17)] (18) "Immediate supervision" means reasonable direction, oversight, inspection, and
             167      evaluation of the work of a person, in or out of the immediate presence of the supervising person,
             168      so as to ensure that the end result complies with applicable standards.
             169          [(18)] (19) "Individual" means a natural person.
             170          [(19)] (20) "Journeyman electrician" means a person licensed under this chapter as a
             171      journeyman electrician having the qualifications, training, experience, and knowledge to wire,
             172      install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
             173          [(20)] (21) "Journeyman plumber" means a person licensed under this chapter as a
             174      journeyman plumber having the qualifications, training, experience, and technical knowledge to
             175      engage in the plumbing trade.
             176          [(21)] (22) "Master electrician" means a person licensed under this chapter as a master
             177      electrician having the qualifications, training, experience, and knowledge to properly plan, layout,
             178      and supervise the wiring, installation, and repair of electrical apparatus and equipment for light,
             179      heat, power, and other purposes.
             180          [(22)] (23) "Person" means a natural person, sole proprietorship, joint venture, corporation,


             181      limited liability company, association, or organization of any type.
             182          [(23)] (24) "Plumbing trade" means the performance of any mechanical work pertaining
             183      to the installation, alteration, change, repair, removal, maintenance, or use in buildings or within
             184      three feet beyond the outside walls of buildings of pipes, fixtures, and fittings for delivery of the
             185      water supply, discharge of liquid and water carried waste, or the building drainage system within
             186      the walls of the building. It includes that work pertaining to the water supply, distribution pipes,
             187      fixtures, and fixture traps, the soil, waste and vent pipes, and the building drain and roof drains
             188      together with their devices, appurtenances, and connections where installed within the outside
             189      walls of the building.
             190          [(24)] (25) "Ratio of apprentices" means, for the purpose of determining compliance with
             191      the requirements for planned programs of training and electrician apprentice licensing applications,
             192      the shop ratio of apprentice electricians to journeyman or master electricians shall be one
             193      journeyman or master electrician to one apprentice on industrial and commercial work, and one
             194      journeyman or master electrician to three apprentices on residential work. All on-the-job training
             195      shall be under circumstances in which the ratio of apprentices to supervisors is in accordance with
             196      a ratio of one-to-one on nonresidential work and up to three apprentices to one supervisor on
             197      residential projects.
             198          [(25)] (26) "Residential and small commercial contractor" means a person licensed under
             199      this chapter as a residential and small commercial contractor qualified by education, training,
             200      experience, and knowledge to perform or superintend the construction of single-family residences,
             201      multifamily residences up to four units, and commercial construction of not more than three stories
             202      above ground and not more than 20,000 square feet, or any of the components of that construction
             203      except plumbing, electrical, and mechanical, for which the residential and small commercial
             204      contractor shall employ the services of a contractor licensed in the particular specialty, except that
             205      a residential and small commercial contractor engaged in the construction of single-family and
             206      multifamily residences up to four units may perform the mechanical work and hire a licensed
             207      plumber or electrician as an employee.
             208          [(26)] (27) "Residential apprentice plumber" means a person licensed under this chapter
             209      as a residential apprentice plumber who is learning the residential plumbing trade while working
             210      on residential buildings under the approved supervision of a residential journeyman plumber or
             211      a journeyman plumber.


             212          [(27)] (28) "Residential building," as it relates to the license classification of residential
             213      apprentice plumber and residential journeyman plumber, means a single or multiple family
             214      dwelling of up to four units.
             215          [(28)] (29) "Residential journeyman electrician" means a person licensed under this
             216      chapter as a residential journeyman electrician having the qualifications, training, experience, and
             217      knowledge to wire, install, and repair electrical apparatus and equipment for light, heat, power, and
             218      other purposes on buildings using primarily nonmetallic sheath cable.
             219          [(29)] (30) "Residential journeyman plumber" means a person licensed under this chapter
             220      as a residential journeyman plumber having the qualifications, training, experience, and knowledge
             221      to engage in the plumbing trade as limited to the plumbing of residential buildings.
             222          [(30)] (31) "Residential master electrician" means a person licensed under this chapter as
             223      a residential master electrician having the qualifications, training, experience, and knowledge to
             224      properly plan, layout, and supervise the wiring, installation, and repair of electrical apparatus and
             225      equipment for light, heat, power, and other purposes on residential projects.
             226          [(31)] (32) "Residential project," as it relates to an electrician or electrical contractor,
             227      means buildings primarily wired with nonmetallic sheathed cable, in accordance with standard
             228      rules and regulations governing this work, including the National Electrical Code, and in which
             229      the voltage does not exceed 250 volts line to line and 125 volts to ground.
             230          [(32)] (33) "Specialty contractor" means a person licensed under this chapter under a
             231      specialty contractor classification established by rule, who is qualified by education, training,
             232      experience, and knowledge to perform those construction trades and crafts requiring specialized
             233      skill the regulation of which are determined by the division to be in the best interest of the public
             234      health, safety, and welfare. A specialty contractor may perform work in crafts or trades other than
             235      those in which he is licensed if they are incidental to the performance of his licensed craft or trade.
             236          [(33)] (34) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
             237          [(34)] (35) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-55-502
             238      and as may be further defined by rule.
             239          [(35)] (36) "Wages" means all amounts due an employee for labor or services whether the
             240      amount is fixed or ascertained on a time, task, piece, commission, or other basis for calculating the
             241      amount.
             242          Section 4. Section 58-55-103 is enacted to read:


             243          58-55-103. Construction Services Commission created -- Functions -- Appointment
             244      -- Qualifications and terms of members -- Expenses -- Meetings.
             245          (1) There is created within the division the Construction Services Commission. The
             246      commission shall:
             247          (a) with the concurrence of the director, make reasonable rules under Title 63, Chapter
             248      46a, Utah Administrative Rulemaking Act, to administer and enforce this chapter which are
             249      consistent with this chapter including:
             250          (i) licensing of various licensees;
             251          (ii) approving and establishing a passing score for applicant examinations;
             252          (iii) standards of supervision for students or persons in training to become qualified to
             253      obtain a license in the trade they represent; and
             254          (iv) standards of conduct for various licensees;
             255          (b) approve or disapprove fees adopted by the division under Section 63-38-3.2 ;
             256          (c) except where the boards conduct them, conduct all administrative hearings not
             257      delegated to an administrative law judge relating to the licensing of any applicant;
             258          (d) except as otherwise provided in Sections 38-11-207 and 58-55-503 , with the
             259      concurrence of the director, impose sanctions against licensees and certificate holders with the
             260      same authority as the division under Section 58-1-401 ;
             261          (e) advise the director on the administration and enforcement of any matters affecting the
             262      division and the construction industry;
             263          (f) advise the director on matters affecting the division budget;
             264          (g) advise and assist trade associations in conducting construction trade seminars and
             265      industry education and promotion; and
             266          (h) perform other duties as provided by this chapter.
             267          (2) Initially the commission shall be comprised of the h [ seven ] FIVE h members of the
             267a      Contractors
             268      Licensing Board h [ whose ] AND TWO OF THE THREE CHAIR PERSONS FROM THE PLUMBERS
             268a      LICENSING BOARD, THE ALARM SYSTEM SECURITY AND LICENSING BOARD, AND THE
             268b      ELECTRICIANS LICENSING BOARD. THE h terms of office h OF THE COMMISSION MEMBERS
             268c      WHO ARE SERVING ON THE CONTRACTORS LICENSING BOARD h shall continue as they serve on
             268d      the commission. The
             269      commission shall be comprised of seven members appointed by the executive director with the
             270      approval of the governor from the following groups:
             271          (a) one member shall be a licensed general engineering contractor;
             272          (b) one member shall be a licensed general building contractor;
             273          (c) two members shall be licensed residential and small commercial contractors;


             274          (d) two members shall be h [ licensed specialty contractors ] TWO OF THE THREE CHAIR
             274a      PERSONS FROM THE PLUMBERS LICENSING BOARD, THE ALARM SYSTEM SECURITY AND
             274b      LICENSING BOARD, AND THE ELECTRICIANS LICENSING BOARD, WITH THE CONTINGENCY THAT
             274c      THEY WILL ROTATE IN SUCCESSION EVERY TWO YEARS AMONG THE THREE CHAIR PERSONS h ;
             274d      and
             275          (e) one member shall be h [ a certified public accountant until the current term expires after
             276      which this one member shall be from the general public
] FROM THE GENERAL PUBLIC, PROVIDED,

             276a      HOWEVER THAT THE CERTIFIED PUBLIC ACCOUNTANT ON THE CONTRACTORS LICENSING
             276b      BOARD WILL CONTINUE TO SERVE UNTIL THE CURRENT TERM EXPIRES, AFTER WHICH THIS ONE
             276c      MEMBER SHALL BE APPOINTED FROM THE GENERAL PUBLIC h .
             277          (3) (a) Except as required by Subsection (4)(b), as terms of current commission members
             278      expire, the governor shall appoint each new member or reappointed member to a four-year term
             279      ending June 30.
             280          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the time
             281      of appointment or reappointment, adjust the length of terms to stagger the terms of commission
             282      members so that approximately 1/2 of the commission members are appointed every two years.
             283          (c) A commission member may not serve more than two consecutive terms.
             284          (4) The commission shall elect annually one of its members as chair, for a term of one
             285      year.
             286          (5) When a vacancy occurs in the membership for any reason, the replacement shall be
             287      appointed for the unexpired term.
             288          (6) (a) Members shall receive no compensation or benefits for their services, but may
             289      receive per diem and expenses incurred in the performance of the member's official duties at the
             290      rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             291          (b) Members may decline to receive per diem and expenses for their service.
             292          (7) The commission shall meet at least monthly unless the director determines otherwise.
             293      The director may call additional meetings at the director's discretion, upon the request of the chair,
             294      or upon the written request of three or more commission members.
             295          (8) Four members constitute a quorum for the transaction of business. If a quorum is
             296      present when a vote is taken, the affirmative vote of commission members present is the act of the
             297      commission.
             298          (9) The commission shall comply with the procedures and requirements of Title 13,
             299      Chapter 1, Department of Commerce, and Title 63, Chapter 46b, Administrative Procedures Act,
             300      in all of their adjudicative proceedings.
             301          Section 5. Section 58-55-201 is amended to read:
             302           58-55-201. Board created -- Duties.
             303          (1) There is created [a Contractors Licensing Board,] a Plumbers Licensing Board, an
             304      Alarm System Security and Licensing Board, and an Electricians Licensing Board. Members of


             305      the boards shall be selected to provide representation as follows:
             306          [(a) The Contractors Licensing Board consists of seven members as follows:]
             307          [(i) one member shall be a licensed general engineering contractor;]
             308          [(ii) one member shall be a licensed general building contractor;]
             309          [(iii) two members shall be licensed residential and small commercial contractors;]
             310          [(iv) two members shall be licensed specialty contractors; and]
             311          [(v) one member shall be a certified public accountant.]
             312          [(b)] (a) The Plumbers Licensing Board consists of five members as follows:
             313          (i) four members shall be licensed journeyman plumbers, of whom two shall be licensed
             314      plumbing contractors; and
             315          (ii) one member shall be from the public at large with no history of involvement in the
             316      construction trades.
             317          [(c)] (b) (i) The Alarm System Security and Licensing Board consists of five members as
             318      follows:
             319          (A) three individuals who are officers or owners of a licensed alarm business;
             320          (B) one individual from among nominees of the Utah Peace Officers Association; and
             321          (C) one individual representing the general public.
             322          (ii) The Alarm System Security and Licensing Board shall designate one of its members
             323      on a permanent or rotating basis to:
             324          (A) assist the division in reviewing complaints concerning the unlawful or unprofessional
             325      conduct of a licensee; and
             326          (B) advise the division in its investigation of these complaints.
             327          (iii) A board member who has, under Subsection (3), reviewed a complaint or advised in
             328      its investigation is disqualified from participating with the board when the board serves as a
             329      presiding officer in an adjudicative proceeding concerning the complaint.
             330          [(d)] (c) The Electricians Licensing Board consists of five members as follows:
             331          (i) two members shall be licensed from among the license classifications of master or
             332      journeyman electrician, of whom one shall represent a union organization and one shall be selected
             333      having no union affiliation;
             334          (ii) two shall be licensed electrical contractors of whom one shall represent a union
             335      organization and one shall be selected having no union affiliation; and


             336          (iii) one member shall be from the public at large with no history of involvement in the
             337      construction trades or union affiliation.
             338          [(2) The boards shall be appointed and serve in accordance with Section 58-1-201 .]
             339          [(3) The duties and responsibilities of the boards shall be in accordance with Sections
             340      58-1-202 and 58-1-203 .]
             341          (2) The duties, functions, and responsibilities of each board include the following:
             342          (a) recommending to the commission appropriate rules;
             343          (b) recommending to the commission policy and budgetary matters;
             344          (c) approving and establishing a passing score for applicant examinations;
             345          (d) overseeing the screening of applicants for licensing, renewal, reinstatement, and
             346      relicensure;
             347          (e) assisting the commission in establishing standards of supervision for students or
             348      persons in training to become qualified to obtain a license in the occupation or profession it
             349      represents; and
             350          (f) acting as presiding officer in conducting hearings associated with the adjudicative
             351      proceedings and in issuing recommended orders when so authorized by the commission.
             352          Section 6. Section 58-55-302 is amended to read:
             353           58-55-302. Qualifications for licensure.
             354          (1) Each applicant for a license under this chapter shall:
             355          (a) submit an application prescribed by the division;
             356          (b) pay a fee as determined by the department under Section 63-38-3.2 ;
             357          (c) (i) meet the examination requirements established by rule by the [division in
             358      collaboration with the appropriate board] commission with the concurrence of the director, except
             359      for the classifications of apprentice plumber, residential apprentice plumber, and apprentice
             360      electrician for whom no examination is required; or
             361          (ii) if required in Section 58-55-304 , the individual qualifier must pass the required
             362      examination if the applicant is a business entity;
             363          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
             364          (e) if an applicant for a contractor's license:
             365          (i) produce satisfactory evidence of financial responsibility, except for construction trades
             366      instructor for whom evidence of financial responsibility is not required;


             367          (ii) produce satisfactory evidence of knowledge and experience in the construction industry
             368      and knowledge of the principles of the conduct of business as a contractor, reasonably necessary
             369      for the protection of the public health, safety, and welfare; and
             370          (iii) be a licensed master electrician if an applicant for an electrical contractor's license or
             371      a licensed master residential electrician if an applicant for a residential electrical contractor's
             372      license; or
             373          (iv) be a journeyman plumber or residential journeyman plumber if an applicant for a
             374      plumbing contractor's license; and
             375          (f) if an applicant for a construction trades instructor license, satisfy any additional
             376      requirements established by rule.
             377          (2) After approval of an applicant for a contractor's license by the applicable board and the
             378      division, the applicant shall file the following with the division before the division issues the
             379      license:
             380          (a) proof of workers' compensation insurance which covers employees of the applicant in
             381      accordance with applicable Utah law;
             382          (b) proof of public liability insurance in coverage amounts and form established by rule
             383      except for a construction trades instructor for whom public liability insurance is not required; and
             384          (c) proof of registration as required by applicable law with the:
             385          (i) Utah Department of Commerce;
             386          (ii) Division of Corporations and Commercial Code;
             387          (iii) Division of Workforce Information and Payment Services in the Department of
             388      Workforce Services, for purposes of Title 35A, Chapter 4, Employment Security Act;
             389          (iv) State Tax Commission; and
             390          (v) Internal Revenue Service.
             391          (3) In addition to the general requirements for each applicant in Subsection (1), applicants
             392      shall comply with the following requirements to be licensed in the following classifications:
             393          (a) A journeyman plumber applicant shall produce satisfactory evidence of:
             394          (i) [satisfactory evidence of] successful completion of the equivalent of at least four years
             395      of full-time training and instruction as a licensed apprentice plumber under supervision of a
             396      licensed journeyman plumber and in accordance with a planned program of training approved by
             397      the division;


             398          (ii) [satisfactory evidence of] at least eight years of full-time experience approved by the
             399      division in collaboration with the Plumbers Licensing Board; or
             400          (iii) satisfactory evidence of meeting the qualifications determined by the [division and]
             401      board to be equivalent to Subsection (3)(a)(i) or (a)(ii).
             402          (b) A residential journeyman plumber shall produce satisfactory evidence of [completion
             403      of]:
             404          (i) completion of the equivalent of at least three years of full-time training and instruction
             405      as a licensed apprentice plumber under the supervision of a licensed residential journeyman
             406      plumber or licensed journeyman plumber in accordance with a planned program of training
             407      approved by the division;
             408          (ii) completion of at least six years of full-time experience in a maintenance or repair trade
             409      involving substantial plumbing work; or
             410          (iii) [satisfactory evidence of] meeting the qualifications determined by the [division and]
             411      board to be equivalent to Subsection (3)(b)(i) or (b)(ii).
             412          (c) A master electrician applicant shall produce satisfactory evidence that [he either] the
             413      applicant:
             414          (i) is a graduate electrical engineer of an accredited college or university approved by the
             415      division and has one year of practical electrical experience as a licensed apprentice electrician;
             416          (ii) is a graduate of an electrical trade school, having received an associate of applied
             417      sciences degree following successful completion of a course of study approved by the division, and
             418      has two years of practical experience as a licensed journeyman electrician;
             419          (iii) is a graduate of an electrical trade school, having received a certificate of completion
             420      following successful completion of a course of study approved by the division, and has four years
             421      of practical experience as a journeyman electrician;
             422          (iv) has at least eight years of practical experience under the supervision of a licensed
             423      journeyman or master electrician; or
             424          (v) meets the qualifications determined by the [division and] board to be equivalent to
             425      these qualifications.
             426          (d) A master residential electrician applicant shall produce satisfactory evidence that [he]
             427      the applicant:
             428          (i) has at least two years of practical experience as a residential journeyman electrician;


             429      or
             430          (ii) meets the qualifications determined by the [division and] board to be equivalent to this
             431      practical experience.
             432          (e) A journeyman electrician applicant shall produce satisfactory evidence that [he either]
             433      the applicant:
             434          (i) has successfully completed at least four years of full-time training and instruction as
             435      a licensed apprentice electrician under the supervision of a master electrician or journeyman
             436      electrician and in accordance with a planned training program approved by the division;
             437          (ii) has six years of practical experience in wiring, installing, and repairing electrical
             438      apparatus and equipment for light, heat, and power under the supervision of a licensed master or
             439      journeyman electrician; or
             440          (iii) meets the qualifications determined by the [division and] board to be equivalent to
             441      these qualifications.
             442          (f) A residential journeyman electrician applicant shall produce satisfactory evidence that
             443      [he] the applicant:
             444          (i) has successfully completed two years of training in an electrical training program
             445      approved by the division;
             446          (ii) has four years of practical experience in wiring, installing, and repairing electrical
             447      apparatus and equipment for light, heat, and power under the supervision of a licensed master,
             448      journeyman, residential master, or residential journeyman electrician; or
             449          (iii) meets the qualifications determined by the division and applicable board to be
             450      equivalent to Subsection (3)(f)(i) or (f)(ii).
             451          (g) The conduct of licensed apprentice electricians and their licensed supervisors shall be
             452      in accordance with the following:
             453          (i) A licensed apprentice electrician shall be under the immediate supervision of a licensed
             454      master, journeyman, residential master, or residential journeyman electrician. An apprentice in
             455      the fourth year of training may work without supervision for a period not to exceed eight hours in
             456      any 24-hour period.
             457          (ii) A licensed master, journeyman, residential master, or residential journeyman
             458      electrician may have under [his] immediate supervision on a residential project up to three licensed
             459      apprentice electricians.


             460          (iii) A licensed master or journeyman electrician may have under [his] immediate
             461      supervision on nonresidential projects only one licensed apprentice electrician.
             462          (h) An alarm company applicant shall:
             463          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
             464      the applicant who:
             465          (A) demonstrates 6,000 hours of experience in the alarm company business;
             466          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
             467      company business or in a construction business; and
             468          (C) passes an examination component established by rule by the [division in collaboration
             469      with the board] commission with the concurrence of the director;
             470          (ii) if a corporation, provide:
             471          (A) the names, addresses, dates of birth, social security numbers, and fingerprint cards of
             472      all corporate officers, directors, and those responsible management personnel employed within the
             473      state or having direct responsibility for managing operations of the applicant within the state; and
             474          (B) the names, addresses, dates of birth, social security numbers, and fingerprint cards of
             475      all shareholders owning 5% or more of the outstanding shares of the corporation, except this shall
             476      not be required if the stock is publicly listed and traded;
             477          (iii) if a limited liability company, provide:
             478          (A) the names, addresses, dates of birth, social security numbers, and fingerprint cards of
             479      all company officers, and those responsible management personnel employed within the state or
             480      having direct responsibility for managing operations of the applicant within the state; and
             481          (B) the names, addresses, dates of birth, social security numbers, and fingerprint cards of
             482      all individuals owning 5% or more of the equity of the company;
             483          (iv) if a partnership, the names, addresses, dates of birth, social security numbers, and
             484      fingerprint cards of all general partners, and those responsible management personnel employed
             485      within the state or having direct responsibility for managing operations of the applicant within the
             486      state;
             487          (v) if a proprietorship, the names, addresses, dates of birth, social security numbers, and
             488      fingerprint cards of the proprietor, and those responsible management personnel employed within
             489      the state or having direct responsibility for managing operations of the applicant within the state;
             490          (vi) be of good moral character in that officers, directors, shareholders described in


             491      Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel have not
             492      been convicted of a felony, a misdemeanor involving moral turpitude, or any other crime that when
             493      considered with the duties and responsibilities of an alarm company is considered by the [division
             494      and the] board to indicate that the best interests of the public are served by granting the applicant
             495      a license;
             496          (vii) document that none of the applicant's officers, directors, shareholders described in
             497      Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel have been
             498      declared by any court of competent jurisdiction incompetent by reason of mental defect or disease
             499      and not been restored;
             500          (viii) document that none of the applicant's officers, directors, shareholders described in
             501      Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel are currently
             502      suffering from habitual drunkenness or from drug addiction or dependence;
             503          (ix) file and maintain with the division evidence of:
             504          (A) comprehensive general liability insurance in form and in amounts to be established
             505      by rule by the [division in collaboration with the board] commission with the concurrence of the
             506      director;
             507          (B) workers' compensation insurance that covers employees of the applicant in accordance
             508      with applicable Utah law; and
             509          (C) registration as is required by applicable law with the:
             510          (I) Division of Corporations and Commercial Code;
             511          (II) Division of Workforce Information and Payment Services in the Department of
             512      Workforce Services, for purposes of Title 35A, Chapter 4, Employment Security Act;
             513          (III) State Tax Commission; and
             514          (IV) Internal Revenue Service; and
             515          (x) meet with the division and board.
             516          (i) Each applicant for licensure as an alarm company agent shall:
             517          (i) submit an application in a form prescribed by the division accompanied by fingerprint
             518      cards;
             519          (ii) pay a fee determined by the department under Section 63-38-3.2 ;
             520          (iii) be of good moral character in that the applicant has not been convicted of a felony,
             521      a misdemeanor involving moral turpitude, or any other crime that when considered with the duties


             522      and responsibilities of an alarm company agent is considered by the [division and the] board to
             523      indicate that the best interests of the public are served by granting the applicant a license;
             524          (iv) not have been declared by any court of competent jurisdiction incompetent by reason
             525      of mental defect or disease and not been restored;
             526          (v) not be currently suffering from habitual drunkenness or from drug addiction or
             527      dependence; and
             528          (vi) meet with the division and board if requested by the division or the board.
             529          (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             530      division may make rules establishing when Federal Bureau of Investigation records shall be
             531      checked for applicants as an alarm company or alarm company agent.
             532          (5) To determine if an applicant meets the qualifications of Subsections (3)(h)(vi) and
             533      (3)(i)(iii), the division shall provide an appropriate number of copies of fingerprint cards to the
             534      Department of Public Safety with the division's request to:
             535          (a) conduct a search of records of the Department of Public Safety for criminal history
             536      information relating to each applicant for licensure as an alarm company or alarm company agent
             537      and each applicant's officers, directors, [and] shareholders described in Subsection (3)(h)(ii)(B),
             538      partners, proprietors, and responsible management personnel; and
             539          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
             540      requiring a check of records of the F.B.I. for criminal history information under this section.
             541          (6) The Department of Public Safety shall send to the division:
             542          (a) a written record of criminal history, or certification of no criminal history record, as
             543      contained in the records of the Department of Public Safety in a timely manner after receipt of a
             544      fingerprint card from the division and a request for review of Department of Public Safety records;
             545      and
             546          (b) the results of the F.B.I. review concerning an applicant in a timely manner after receipt
             547      of information from the F.B.I.
             548          (7) (a) The division shall charge each applicant for licensure as an alarm company or alarm
             549      company agent a fee, in accordance with Section 63-38-3.2 , equal to the cost of performing the
             550      records reviews under this section.
             551          (b) The division shall pay the Department of Public Safety the costs of all records reviews,
             552      and the Department of Public Safety shall pay the F.B.I. the costs of records reviews under this


             553      section.
             554          (8) Information obtained by the division from the reviews of criminal history records of
             555      the Department of Public Safety and the F.B.I. shall be used or disseminated by the division only
             556      for the purpose of determining if an applicant for licensure as an alarm company or alarm company
             557      agent is qualified for licensure.
             558          (9) (a) An application for licensure under this chapter shall be denied if:
             559          (i) the applicant has had a previous license, which was issued under this chapter,
             560      suspended or revoked within one year prior to the date of the applicant's application;
             561          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             562          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             563      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar status,
             564      performing similar functions, or directly or indirectly controlling the applicant has served in any
             565      similar capacity with any person or entity which has had a previous license, which was issued
             566      under this chapter, suspended or revoked within one year prior to the date of the applicant's
             567      application; or
             568          (iii) (A) the applicant is an individual or sole proprietorship; and
             569          (B) any owner or agent acting as a qualifier has served in any capacity listed in Subsection
             570      (9)(a)(ii)(B) in any entity which has had a previous license, which was issued under this chapter,
             571      suspended or revoked within one year prior to the date of the applicant's application.
             572          (b) An application for licensure under this chapter shall be reviewed by the appropriate
             573      licensing board prior to approval if:
             574          (i) the applicant has had a previous license, which was issued under this chapter,
             575      suspended or revoked more than one year prior to the date of the applicant's application;
             576          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             577          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             578      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar status,
             579      performing similar functions, or directly or indirectly controlling the applicant has served in any
             580      similar capacity with any person or entity which has had a previous license, which was issued
             581      under this chapter, suspended or revoked more than one year prior to the date of the applicant's
             582      application; or
             583          (iii) (A) the applicant is an individual or sole proprietorship; and


             584          (B) any owner or agent acting as a qualifier has served in any capacity listed in Subsection
             585      (9)(b)(ii)(B) in any entity which has had a previous license, which was issued under this chapter,
             586      suspended or revoked more than one year prior to the date of the applicant's application.
             587          Section 7. Section 58-55-304 is amended to read:
             588           58-55-304. Licensee names -- License number use -- License qualifier.
             589          (1) No license may be issued by the division in a name that is identical to or so resembles
             590      the name of another licensee that the division determines that it may result in confusion or mistake.
             591          (2) The contractor's license number shall be made a part of all permit applications,
             592      contracts, agreements, or bids when a license is required.
             593          (3) The division may issue a license in the name of an individual [person] or the name of
             594      a business entity for which the individual [person] acts as a qualifier, in accordance with the
             595      following:
             596          (a) An individual shall:
             597          (i) submit an application in [his] the individual's name;
             598          (ii) demonstrate [his] the individual's own financial responsibility; and
             599          (iii) pass the required examination and meet all other requirements of this chapter.
             600          (b) A business entity shall:
             601          (i) submit the application in the name of and on behalf of the business entity;
             602          (ii) list the individual as the qualifier;
             603          (iii) demonstrate financial responsibility of the business entity if applying for a contractor's
             604      license;
             605          (iv) provide evidence that the individual qualifier has passed the required examination; and
             606          (v) meet all other requirements of this chapter.
             607          (4) A person acting as a qualifier for a business entity licensee must demonstrate to the
             608      division that [he] the individual is an owner, officer, or manager within that business entity who
             609      exercises material authority in the conduct of that business entity's contracting business by:
             610          (a) making substantive technical and administrative decisions relating to the work
             611      performed for which a license is required under this chapter;
             612          (b) hiring, promoting, transferring, laying off, disciplining, directing, or discharging
             613      employees of the licensee either by himself or through others; and
             614          (c) not being involved in any other employment or activity which conflicts with [his] the


             615      individual's duties and responsibilities to ensure the licensee's performance of work regulated
             616      under this chapter does not jeopardize the public health, safety, and welfare.
             617          (5) [It] (a) Except as provided in Subsection (5)(b), it is the duty and responsibility of the
             618      licensee and the qualifier to comply with the provisions of this section. Failure to comply with the
             619      requirements of this section may be considered unprofessional conduct by the licensee, the
             620      qualifier, or both.
             621          (b) If a licensee business entity has maintained its license and has not violated the
             622      requirements of this chapter or Sections 58-55-101 through 58-55-604 for a period of ten
             623      consecutive years, the business entity may maintain its license under this chapter h [ without having ]
             623a      BY RECORDING AN ACTIVE EMPLOYEE NAME AND REGISTRATION/LICENSE NUMBER FROM THE
             623b      APPLICABLE TRADE ON THE RENEWAL APPLICATION IN ORDER h
             624      to comply with the individual qualifier requirements of this section. However, this Subsection
             625      (5)(b) shall not apply if more than 50% of the ownership of the business entity has been transferred
             626      at any time during the ten-year period.
             627          (6) If an individual qualifying on behalf of a business entity issued a license under this
             628      chapter ceases association with that entity as required in Subsection (4), the licensee shall notify
             629      the division in writing within ten days after cessation of association or employment. If notice is
             630      given, the license shall remain in force for 60 days after the date of cessation of association or
             631      employment. The licensee shall replace the original qualifier with another individual qualifier
             632      within the 60-day period or the license shall be automatically suspended.
             633          (7) Failure to notify the division of cessation of association or employment of a qualifier
             634      as required in Subsection (6) may result in immediate suspension of the license upon a finding of
             635      good cause.
             636          Section 8. Section 58-55-305 is amended to read:
             637           58-55-305. Exemptions from licensure.
             638          In addition to the exemptions from licensure in Section 58-1-307 , the following persons
             639      may engage in acts or practices included within the practice of construction trades subject to the
             640      stated circumstances and limitations without being licensed under this chapter:
             641          (1) an authorized representative of the United States government or an authorized
             642      employee of the state or any of its political subdivisions when working on construction work of
             643      the state or the subdivision, and when acting within the terms of his trust, office, or employment;
             644          (2) a person engaged in construction or operation incidental to the construction and repair
             645      of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation districts,


             646      and drainage districts or construction and repair relating to farming, dairying, agriculture, livestock
             647      or poultry raising, metal and coal mining, quarries, sand and gravel excavations, well drilling,
             648      hauling to and from construction sites, and lumbering;
             649          (3) public utilities operating under the rules of the Public Service Commission on
             650      construction work incidental to their own business;
             651          (4) sole owners of property engaged in building:
             652          (a) no more than one residential structure per year and no more than three residential
             653      structures per five years on their property for their own noncommercial, nonpublic use; except, any
             654      person, other than the property owner or individuals described in Subsection (5), who engages in
             655      building the structure must be licensed under this chapter if he is otherwise required to be licensed
             656      under this chapter; or
             657          (b) structures on their property for their own noncommercial, nonpublic use which are
             658      incidental to a residential structure on the property, including sheds, carports, or detached garages;
             659          (5) (a) an individual engaged in construction or renovation of a residential building for
             660      noncommercial, nonpublic use if that person:
             661          (i) works without compensation other than token compensation that is not considered
             662      salary or wages; and
             663          (ii) works under the direction of the property owner who engages in building the structure;
             664          (b) for purposes of this Subsection (5), "token compensation" means compensation paid
             665      by a sole owner of property exempted from licensure under Subsection (4) to an individual
             666      exempted from licensure under this Subsection (5), that is:
             667          (i) minimal in value when compared with the fair market value of the services provided
             668      by the individual;
             669          (ii) not related to the fair market value of the services provided by the individual; and
             670          (iii) is incidental to providing of services by the individual including paying for or
             671      providing meals or refreshment while services are being provided, or paying reasonable
             672      transportation costs incurred by the individual in travel to the site of construction;
             673          (6) a person engaged in the sale or merchandising of personal property that by its design
             674      or manufacture may be attached, installed, or otherwise affixed to real property who has contracted
             675      with a person, firm, or corporation licensed under this chapter to install, affix, or attach that
             676      property;


             677          (7) a contractor submitting a bid on a federal aid highway project, if, before undertaking
             678      any construction under that bid, the contractor is licensed under this chapter;
             679          (8) (a) a person engaged in the alteration, repair, remodeling, or addition to or
             680      improvement of any building with a contracted or agreed value of less than $1,000, including both
             681      labor and materials, and including all changes or additions to the contracted or agreed upon work;
             682          (b) notwithstanding Subsection (8)(a), work in the plumbing and electrical trades must be
             683      performed by a licensed electrician or plumber except as otherwise provided in this section;
             684          (9) a person practicing a specialty contractor classification or construction trade which is
             685      not classified by rule by the director as significantly impacting the public's health, safety, and
             686      welfare;
             687          (10) owners and lessees of property and persons regularly employed for wages by owners
             688      or lessees of property or their agents for the purpose of maintaining the property, are exempt from
             689      this chapter when doing work upon the property;
             690          (11) (a) a person engaged in minor plumbing work incidental to the replacement or repair
             691      of a fixture or an appliance in a residential or small commercial building, or structure used for
             692      agricultural use, as defined in Section 58-56-4 , provided that no modification is made to existing
             693      culinary water, soil, waste, or vent piping;
             694          (b) except as provided in Subsection (5), installation for the first time of a fixture or an
             695      appliance is not included in the exemption provided under Subsection (11)(a);
             696          (12) a person who ordinarily would be subject to the plumber licensure requirements set
             697      forth in this chapter when installing or repairing a water conditioner or other water treatment
             698      apparatus if the conditioner or apparatus:
             699          (a) meets the appropriate state construction codes or local plumbing standards; and
             700          (b) is installed or repaired under the direction of a person authorized to do such work under
             701      an appropriate specialty contractor license;
             702          (13) a person who ordinarily would be subject to the electrician licensure requirements set
             703      forth in this chapter when employed by or under contract with:
             704          (a) railroad corporations, telephone corporations or their corporate affiliates, elevator
             705      contractors or constructors, or street railway systems; or
             706          (b) public service corporations, rural electrification associations, or municipal utilities who
             707      generate, distribute, or sell electrical energy for light, heat, or power;


             708          (14) a person involved in minor electrical work incidental to a mechanical or service
             709      installation; and
             710          (15) a student participating in construction trade education and training programs approved
             711      by the [division in collaboration with the board] commission with the concurrence of the director
             712      under the condition that:
             713          (a) all work intended as a part of a finished product on which there would normally be an
             714      inspection by a building inspector is, in fact, inspected and found acceptable by a licensed building
             715      inspector; and
             716          (b) a licensed contractor obtains the necessary building permits.
             717          Section 9. Section 58-55-306 is amended to read:
             718           58-55-306. Financial responsibility.
             719          (1) An applicant for licensure as a contractor, and a licensee applying for renewal or
             720      reinstatement of a contractor's license shall demonstrate to the division and the [board]
             721      commission the applicant's or licensee's financial responsibility before the issuance of or the
             722      renewal or reinstatement of a license by:
             723          (a) (i) completing a questionnaire developed by the division; and
             724          (ii) signing the questionnaire, certifying that the information provided is true and accurate;
             725      or
             726          (b) submitting a bond in an amount and form determined by the [division] commission
             727      with the concurrence of the director.
             728          (2) The division may audit an applicant's or licensee's demonstration of financial
             729      responsibility on a random basis or upon finding of a reasonable need.
             730          (3) The burden to demonstrate financial responsibility is upon the applicant or licensee.
             731          Section 10. Section 58-55-307 is amended to read:
             732           58-55-307. Confidentiality of records and reports.
             733          [Notwithstanding Title 63, Chapter 2, Government Records Access and Management Act,
             734      credit]
             735          (1) Credit reports, financial statements, and other information submitted to the division
             736      by or at the request and direction of an applicant or licensee for the purpose of supporting a
             737      representation of financial responsibility [are confidential and] constitute protected records under
             738      Title 63, Chapter 2, Government Records Access and Management Act.


             739          (2) Notwithstanding Title 63, Chapter 2, Government Records Access and Management
             740      Act, the records described in Subsection (1) are not open for public inspection and are not subject
             741      to discovery in civil or administrative proceedings.
             742          Section 11. Section 58-55-308 is amended to read:
             743           58-55-308. Scope of practice -- Rules.
             744          (1) The [division, in collaboration with the board] commission, with the concurrence of
             745      the director, may adopt reasonable rules pursuant to Title 63, Chapter 46a, Utah Administrative
             746      Rulemaking Act, to define and limit the scope of practice and operating standards of the
             747      classifications and subclassifications licensed under this chapter in a manner consistent with
             748      established practice in the relevant industry. The [division and the board] commission and the
             749      director may limit the field and scope of operations of a licensee under this chapter in accordance
             750      with the rules and the public health, safety, and welfare, based on the licensee's education, training,
             751      experience, knowledge, and financial responsibility.
             752          (2) This section does not prohibit a licensed specialty contractor from accepting and
             753      entering into a contract involving the use of two or more crafts or trades if the performance of the
             754      work in the crafts or trades, other than that in which [he] the contractor is licensed, is incidental
             755      and supplemental to the work for which [he] the contractor is licensed.
             756          Section 12. Section 58-55-503 is amended to read:
             757           58-55-503. Penalty for unlawful conduct -- Citations.
             758          (1) Any person who violates Subsection 58-55-501 (1), (2), (3), (4), (5), (6), (7), (9), (10),
             759      (12), (14), or (15), or who fails to comply with a citation issued under this section after it is final,
             760      is guilty of a class A misdemeanor. Any person who violates the provisions of Subsection
             761      58-55-501 (8) may not be awarded and may not accept a contract for the performance of the work.
             762          (2) Any person who violates the provisions of Subsection 58-55-501 (13) is guilty of an
             763      infraction unless the violator did so with the intent to deprive the person to whom money is to be
             764      paid of the money received, in which case the violator is guilty of theft, as classified in Section
             765      76-6-412 .
             766          (3) Grounds for immediate suspension of the licensee's license by the division and the
             767      [board] commission include the issuance of a citation for violation of Section 58-55-501 or the
             768      failure by a licensee to make application to, report to, or notify the division with respect to any
             769      matter for which application, notification, or reporting is required under this chapter or rules


             770      adopted under this chapter, including applying to the division for a new license to engage in a new
             771      specialty classification or to do business under a new form of organization or business structure,
             772      filing with the division current financial statements, notifying the division concerning loss of
             773      insurance coverage, or change in qualifier.
             774          (4) (a) If upon inspection or investigation, the division concludes that a person has violated
             775      the provisions of Subsections 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19), or any rule or order
             776      issued with respect to these subsections, and that disciplinary action is appropriate, the director or
             777      [his] the director's designee from within the division [for each alternative respectively,] shall[,]
             778      promptly issue a citation to the person according to this chapter and any pertinent rules, attempt
             779      to negotiate a stipulated settlement, or notify the person to appear before an adjudicative
             780      proceeding conducted under Title 63, Chapter 46b, Administrative Procedures Act.
             781          (i) Any person who is in violation of the provisions of Subsection 58-55-501 (1), (2), (3),
             782      (9), (10), (12), (14), or (19), as evidenced by an uncontested citation, a stipulated settlement, or by
             783      a finding of violation in an adjudicative proceeding, may be assessed a fine pursuant to this
             784      Subsection (4) and may, in addition to or in lieu of, be ordered to cease and desist from violating
             785      Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), or (19).
             786          (ii) Except for a cease and desist order, the licensure sanctions cited in Section 58-55-401
             787      may not be assessed through a citation.
             788          (b) Each citation shall be in writing and describe with particularity the nature of the
             789      violation, including a reference to the provision of the chapter, rule, or order alleged to have been
             790      violated. The citation shall clearly state that the recipient must notify the division in writing within
             791      20 calendar days of service of the citation if the recipient wishes to contest the citation at a hearing
             792      conducted under Title 63, Chapter 46b, Administrative Procedures Act. The citation shall clearly
             793      explain the consequences of failure to timely contest the citation or to make payment of any fines
             794      assessed by the citation within the time specified in the citation.
             795          (c) Each citation issued under this section, or a copy of each citation, may be served upon
             796      any person upon whom a summons may be served:
             797          (i) in accordance with the Utah Rules of Civil Procedure [and may be made];
             798          (ii) personally or upon [his] the person's agent by a division investigator or by any person
             799      specially designated by the director; or
             800          (iii) by mail.


             801          (d) If within 20 calendar days from the service of a citation[,] the person to whom the
             802      citation was issued fails to request a hearing to contest the citation, the citation becomes the final
             803      order of the division and is not subject to further agency review. The period to contest a citation
             804      may be extended by the division for cause.
             805          (e) The division may refuse to issue or renew, suspend, revoke, or place on probation the
             806      license of a licensee who fails to comply with a citation after it becomes final.
             807          (f) The failure of an applicant for licensure to comply with a citation after it becomes final
             808      is a ground for denial of license.
             809          (g) No citation may be issued under this section after the expiration of six months
             810      following the occurrence of any violation.
             811          (h) Fines shall be assessed by the director or [his] the director's designee according to the
             812      following:
             813          (i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
             814          (ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000; and
             815          (iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to
             816      $2,000 for each day of continued offense.
             817          (i) (i) For purposes of issuing a final order under this section and assessing a fine under
             818      Subsection (4)(i), an offense constitutes a second or subsequent offense if:
             819          (A) the division previously issued a final order determining that a person committed a first
             820      or second offense in violation of Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), or (19);
             821      or
             822          (B) (I) the division initiated an action for a first or second offense;
             823          (II) no final order has been issued by the division in the action initiated under Subsection
             824      (4)(i)(i)(B)(I);
             825          (III) the division determines during an investigation that occurred after the initiation of the
             826      action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent violation
             827      of the provisions of Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), or (19); and
             828          (IV) after determining that the person committed a second or subsequent offense under
             829      Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under Subsection
             830      (4)(i)(i)(B)(I).
             831          (ii) In issuing a final order for a second or subsequent offense under Subsection (4)(i)(i),


             832      the division shall comply with the requirements of this section.
             833          (5) Any penalty imposed by the director under Subsection (4)(h) shall be deposited into
             834      the Commerce Service Fund. Any penalty which is not paid may be collected by the director by
             835      either referring the matter to a collection agency or bringing an action in the district court of the
             836      county in which the person against whom the penalty is imposed resides or in the county where
             837      the office of the director is located. Any county attorney or the attorney general of the state is to
             838      provide legal assistance and advice to the director in any action to collect the penalty. In any
             839      action brought to enforce the provisions of this section, reasonable attorney's fees and costs shall
             840      be awarded.
             841          Section 13. Effective date.
             842          This act takes effect on July 1, 2002.


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