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6 Eric K Hutchings
7 This act modifies the Construction Trades Licensing Act. The act provides that a person
8 that installs or repairs a residential or commercial natural gas appliance or a combustion
9 system must become certified. The act modifies certain exemptions from licensure. The act
10 adds and modifies definitions. The act modifies unlawful conduct penalty provisions.
11 This act affects sections of Utah Code Annotated 1953 as follows:
13 58-55-102, as last amended by Chapters 233 and 317, Laws of Utah 2000
14 58-55-305, as last amended by Chapter 227, Laws of Utah 2001
15 58-55-308, as last amended by Chapter 317, Laws of Utah 2000
16 58-55-503, as last amended by Chapters 198 and 361, Laws of Utah 2001
17 Be it enacted by the Legislature of the state of Utah:
18 Section 1. Section 58-55-102 is amended to read:
19 58-55-102. Definitions.
20 In addition to the definitions in Section 58-1-102 , as used in this chapter:
21 (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
22 maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system.
23 (b) "Alarm business or company" does not include the activities of:
24 (i) a person engaged in the manufacture and sale of alarm systems when that person is not
25 engaged in the installation, maintenance, alteration, repair, replacement, servicing, or monitoring
26 of alarm systems, and the manufacture or sale occurs only at a place of business established by the
27 person engaged in the manufacture or sale and does not involve site visits at the place or intended
28 place of installation of an alarm system; or
29 (ii) an owner of an alarm system, or an employee of the owner of an alarm system who is
30 engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring of
31 the alarm system owned by that owner.
32 (2) "Alarm company agent" means any individual employed within this state by a person
33 engaged in the alarm business.
34 (3) "Alarm system" means equipment and devices assembled for the purpose of:
35 (a) detecting and signaling unauthorized intrusion or entry into or onto certain premises;
37 (b) signaling a robbery or attempted robbery on protected premises.
38 (4) "Apprentice electrician" means a person licensed under this chapter as an apprentice
39 electrician who is learning the electrical trade under approved supervision of a master electrician,
40 residential master electrician, a journeyman electrician, or a residential journeyman electrician.
41 (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
42 plumber who is learning the plumbing trade under approved supervision of a journeyman plumber.
43 (6) "Approved supervision" means the immediate supervision of apprentices by qualified
44 licensed electricians or plumbers as a part of a planned program of training.
45 (7) "Board" means the Contractors Licensing Board, Electrician Licensing Board, Alarm
46 System Security and Licensing Board, or Plumbers Licensing Board created in Section 58-55-201 .
47 (8) "Combustion system" means an assembly consisting of components with a means for
48 conveying natural gas from the shutoff valve of the piping system nearest the gas appliance to the
49 burner and includes electric control and combustion air supply and venting systems, either
50 continuously or intermittently, and that incorporates components intended to achieve control of
51 quantity, flow, and pressure.
53 (a) construction, alteration, remodeling, repairing, wrecking or demolition, addition to, or
54 improvement of any building, highway, road, railroad, dam, bridge, structure, excavation or other
55 project, development, or improvement to other than personal property[
56 (b) installation or repair of a residential or commercial natural gas appliance or a
57 combustion system.
59 teach one or more construction trades in both a classroom and project environment, where a project
60 is intended for sale to or use by the public and is completed under the direction of an instructor
61 who has no economic interest in the project.
63 an employee undertakes any work in the construction, plumbing, or electrical trade for which
64 licensure is required under this chapter and includes:
65 (i) a person who builds any structure on his own property for the purpose of sale or who
66 builds any structure intended for public use on his own property;
67 (ii) any person who represents himself to be a contractor by advertising or any other
69 (iii) any person engaged as a maintenance person, other than an employee, who regularly
70 engages in activities set forth under the definition of "construction trade";
71 (iv) any person engaged in any construction trade for which licensure is required under this
72 chapter; or
73 (v) a construction manager who performs management and counseling services on a
74 construction project for a fee.
75 (b) "Contractor" does not include an alarm company or alarm company agent.
77 in the installation, construction, alteration, change, repair, removal, or maintenance of facilities,
78 buildings, or appendages or appurtenances.
79 (b) "Electrical trade" does not include:
80 (i) transporting or handling electrical materials;
81 (ii) preparing clearance for raceways for wiring; or
82 (iii) work commonly done by unskilled labor or any installations under the exclusive
83 control of electrical utilities.
84 (c) For purposes of Subsection [
85 (i) no more than one unlicensed person may be so employed unless more than five licensed
86 electricians are employed by the shop; and
87 (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio permitted
88 by this Subsection [
90 consideration to the definition adopted by the Internal Revenue Service and the Department of
91 Workforce Services.
93 (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged in
94 a construction trade; or
95 (b) use the name "contractor" or "builder" or in any other way lead a reasonable person to
96 believe one is or will act as a contractor.
98 future condition of financial solvency evidencing a reasonable expectation to the division and the
99 board that an applicant or licensee can successfully engage in business as a contractor without
100 jeopardy to the public health, safety, and welfare. Financial responsibility may be determined by
101 an evaluation of the total history concerning the licensee or applicant including past, present, and
102 expected condition and record of financial solvency and business conduct.
103 (16) "Gas appliance" means any device that uses natural gas to produce light, heat, power,
104 steam, hot water, refrigeration, or air conditioning.
106 general building contractor qualified by education, training, experience, and knowledge to perform
107 or superintend construction of structures for the support, shelter, and enclosure of persons, animals,
108 chattels, or movable property of any kind or any of the components of that construction except
109 plumbing, electrical, and mechanical, for which the general building contractor shall employ the
110 services of a contractor licensed in the particular specialty, except that a general building
111 contractor engaged in the construction of single-family and multifamily residences up to four units
112 may perform the mechanical and hire a licensed plumber or electrician as an employee. The
113 division may by rule exclude general building contractors from engaging in the performance of
114 other construction specialties in which there is represented a substantial risk to the public health,
115 safety, and welfare, and for which a license is required unless that general building contractor
116 holds a valid license in that specialty classification.
118 as a general engineering contractor qualified by education, training, experience, and knowledge
119 to perform construction of fixed works in any or all of the following: irrigation, drainage, water,
120 power, water supply, flood control, inland waterways, harbors, railroads, highways, tunnels,
121 airports and runways, sewers and bridges, refineries, pipelines, chemical and industrial plants
122 requiring specialized engineering knowledge and skill, piers, and foundations, or any of the
123 components of those works. However, a general engineering contractor may not perform
124 construction of structures built primarily for the support, shelter, and enclosure of persons,
125 animals, and chattels.
127 evaluation of the work of a person, in or out of the immediate presence of the supervising person,
128 so as to ensure that the end result complies with applicable standards.
131 journeyman electrician having the qualifications, training, experience, and knowledge to wire,
132 install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
134 journeyman plumber having the qualifications, training, experience, and technical knowledge to
135 engage in the plumbing trade.
137 electrician having the qualifications, training, experience, and knowledge to properly plan, layout,
138 and supervise the wiring, installation, and repair of electrical apparatus and equipment for light,
139 heat, power, and other purposes.
141 limited liability company, association, or organization of any type.
143 to the installation, alteration, change, repair, removal, maintenance, or use in buildings or within
144 three feet beyond the outside walls of buildings of pipes, fixtures, and fittings for delivery of the
145 water supply, discharge of liquid and water carried waste, or the building drainage system within
146 the walls of the building. It includes that work pertaining to the water supply, distribution pipes,
147 fixtures, and fixture traps, the soil, waste and vent pipes, and the building drain and roof drains
148 together with their devices, appurtenances, and connections where installed within the outside
149 walls of the building.
151 the requirements for planned programs of training and electrician apprentice licensing applications,
152 the shop ratio of apprentice electricians to journeyman or master electricians shall be one
153 journeyman or master electrician to one apprentice on industrial and commercial work, and one
154 journeyman or master electrician to three apprentices on residential work. All on-the-job training
155 shall be under circumstances in which the ratio of apprentices to supervisors is in accordance with
156 a ratio of one-to-one on nonresidential work and up to three apprentices to one supervisor on
157 residential projects.
159 this chapter as a residential and small commercial contractor qualified by education, training,
160 experience, and knowledge to perform or superintend the construction of single-family residences,
161 multifamily residences up to four units, and commercial construction of not more than three stories
162 above ground and not more than 20,000 square feet, or any of the components of that construction
163 except plumbing, electrical, and mechanical, for which the residential and small commercial
164 contractor shall employ the services of a contractor licensed in the particular specialty, except that
165 a residential and small commercial contractor engaged in the construction of single-family and
166 multifamily residences up to four units may perform the mechanical work and hire a licensed
167 plumber or electrician as an employee.
169 as a residential apprentice plumber who is learning the residential plumbing trade while working
170 on residential buildings under the approved supervision of a residential journeyman plumber or
171 a journeyman plumber.
173 apprentice plumber and residential journeyman plumber, means a single or multiple family
174 dwelling of up to four units.
176 chapter as a residential journeyman electrician having the qualifications, training, experience, and
177 knowledge to wire, install, and repair electrical apparatus and equipment for light, heat, power, and
178 other purposes on buildings using primarily nonmetallic sheath cable.
180 as a residential journeyman plumber having the qualifications, training, experience, and knowledge
181 to engage in the plumbing trade as limited to the plumbing of residential buildings.
183 a residential master electrician having the qualifications, training, experience, and knowledge to
184 properly plan, layout, and supervise the wiring, installation, and repair of electrical apparatus and
185 equipment for light, heat, power, and other purposes on residential projects.
187 means buildings primarily wired with nonmetallic sheathed cable, in accordance with standard
188 rules and regulations governing this work, including the National Electrical Code, and in which
189 the voltage does not exceed 250 volts line to line and 125 volts to ground.
191 specialty contractor classification established by rule, who is qualified by education, training,
192 experience, and knowledge to perform those construction trades and crafts requiring specialized
193 skill the regulation of which are determined by the division to be in the best interest of the public
194 health, safety, and welfare. A specialty contractor may perform work in crafts or trades other than
195 those in which he is licensed if they are incidental to the performance of his licensed craft or trade.
198 and as may be further defined by rule.
200 amount is fixed or ascertained on a time, task, piece, commission, or other basis for calculating the
202 Section 2. Section 58-55-305 is amended to read:
203 58-55-305. Exemptions from licensure.
204 In addition to the exemptions from licensure in Section 58-1-307 , the following persons
205 may engage in acts or practices included within the practice of construction trades subject to the
206 stated circumstances and limitations without being licensed under this chapter:
207 (1) an authorized representative of the United States government or an authorized
208 employee of the state or any of its political subdivisions when working on construction work of
209 the state or the subdivision, and when acting within the terms of his trust, office, or employment;
210 (2) a person engaged in construction or operation incidental to the construction and repair
211 of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation districts,
212 and drainage districts or construction and repair relating to farming, dairying, agriculture, livestock
213 or poultry raising, metal and coal mining, quarries, sand and gravel excavations, well drilling,
214 hauling to and from construction sites, and lumbering;
215 (3) public utilities operating under the rules of the Public Service Commission on
216 construction work incidental to their own business;
217 (4) sole owners of property engaged in building:
218 (a) no more than one residential structure per year and no more than three residential
219 structures per five years on their property for their own noncommercial, nonpublic use; except, any
220 person other than the property owner or individuals described in Subsection (5) who engages in
221 building the structure must be licensed under this chapter if he is otherwise required to be licensed
222 under this chapter; or
223 (b) structures on their property for their own noncommercial, nonpublic use which are
224 incidental to a residential structure on the property, including sheds, carports, or detached garages;
225 (5) (a) an individual engaged in construction or renovation of a residential building for
226 noncommercial, nonpublic use if that person:
227 (i) works without compensation other than token compensation that is not considered
228 salary or wages; and
229 (ii) works under the direction of the property owner who engages in building the structure;
230 (b) for purposes of this Subsection (5), "token compensation" means compensation paid
231 by a sole owner of property exempted from licensure under Subsection (4) to an individual
232 exempted from licensure under this Subsection (5), that is:
233 (i) minimal in value when compared with the fair market value of the services provided
234 by the individual;
235 (ii) not related to the fair market value of the services provided by the individual; and
236 (iii) is incidental to providing of services by the individual including paying for or
237 providing meals or refreshment while services are being provided, or paying reasonable
238 transportation costs incurred by the individual in travel to the site of construction;
239 (6) a person engaged in the sale or merchandising of personal property that by its design
240 or manufacture may be attached, installed, or otherwise affixed to real property who has contracted
241 with a person, firm, or corporation licensed under this chapter to install, affix, or attach that
243 (7) a contractor submitting a bid on a federal aid highway project, if, before undertaking
244 any construction under that bid, the contractor is licensed under this chapter;
245 (8) (a) a person engaged in the alteration, repair, remodeling, or addition to or
246 improvement of any building with a contracted or agreed value of less than $1,000, including both
247 labor and materials, and including all changes or additions to the contracted or agreed upon work;
248 (b) notwithstanding Subsection (8)(a)[
249 (i) work in the plumbing and electrical trades must be performed by a licensed electrician
250 or plumber except as otherwise provided in this section; and
251 (ii) installation, repair, or replacement of a residential or commercial gas appliance or a
252 combustion system must be performed by a person who has received certification under Subsection
253 58-55-308 (2);
254 (9) a person practicing a specialty contractor classification or construction trade which is
255 not classified by rule by the director as significantly impacting the public's health, safety, and
257 (10) owners and lessees of property and persons regularly employed for wages by owners
258 or lessees of property or their agents for the purpose of maintaining the property, are exempt from
259 this chapter when doing work upon the property;
260 (11) (a) a person engaged in minor plumbing work incidental to the replacement or repair
261 of a fixture or an appliance in a residential or small commercial building, or structure used for
262 agricultural use, as defined in Section 58-56-4 , provided that no modification is made to:
263 (i) existing culinary water, soil, waste, or vent piping; or
264 (ii) a gas appliance or combustion system;
265 (b) except as provided in Subsection (5), installation for the first time of a fixture or an
266 appliance is not included in the exemption provided under Subsection (11)(a);
267 (12) a person who ordinarily would be subject to the plumber licensure requirements set
268 forth in this chapter when installing or repairing a water conditioner or other water treatment
269 apparatus if the conditioner or apparatus:
270 (a) meets the appropriate state construction codes or local plumbing standards; and
271 (b) is installed or repaired under the direction of a person authorized to do such work under
272 an appropriate specialty contractor license;
273 (13) a person who ordinarily would be subject to the electrician licensure requirements set
274 forth in this chapter when employed by or under contract with:
275 (a) railroad corporations, telephone corporations or their corporate affiliates, elevator
276 contractors or constructors, or street railway systems; or
277 (b) public service corporations, rural electrification associations, or municipal utilities who
278 generate, distribute, or sell electrical energy for light, heat, or power;
279 (14) a person involved in minor electrical work incidental to a mechanical or service
280 installation; and
281 (15) a student participating in construction trade education and training programs approved
282 by the division in collaboration with the board under the condition that:
283 (a) all work intended as a part of a finished product on which there would normally be an
284 inspection by a building inspector is, in fact, inspected and found acceptable by a licensed building
285 inspector; and
286 (b) a licensed contractor obtains the necessary building permits.
287 Section 3. Section 58-55-308 is amended to read:
288 58-55-308. Scope of practice -- Rules.
289 (1) The division, in collaboration with the board, may adopt rules pursuant to Title 63,
290 Chapter 46a, Utah Administrative Rulemaking Act, to define and limit the scope of practice and
291 operating standards of the classifications and subclassifications licensed under this chapter in a
292 manner consistent with established practice in the relevant industry. The division and the board
293 may limit the field and scope of operations of a licensee under this chapter in accordance with the
294 rules and the public health, safety, and welfare, based on the licensee's education, training,
295 experience, knowledge, and financial responsibility.
296 (2) (a) The work and scope of practice covered by this Subsection (2) is the installation,
297 repair, or replacement of a residential or commercial gas appliance or combustion system.
298 (b) The provisions of this Subsection (2) apply to any:
299 (i) licensee under this chapter whose license authorizes the licensee to perform the work
300 described in Subsection (2)(a); and
301 (ii) person exempt from licensure under Subsection 58-55-305 (8).
302 (c) Any person described in Subsection (2)(b) that performs work described in Subsection
304 (i) must first receive training and certification as specified in rules adopted by the division;
306 (ii) shall ensure that any employee authorized under other provisions of this chapter to
307 perform work described in Subsection (2)(a) has first received training and certification as
308 specified in rules adopted by the division.
309 (d) The division may exempt from the training requirements adopted under Subsection
310 (2)(c) a person that has adequate experience, as determined by the division.
312 entering into a contract involving the use of two or more crafts or trades if the performance of the
313 work in the crafts or trades, other than that in which he is licensed, is incidental and supplemental
314 to the work for which he is licensed.
315 Section 4. Section 58-55-503 is amended to read:
316 58-55-503. Penalty for unlawful conduct -- Citations.
317 (1) Any person who violates Subsection 58-55-308 (2) or Subsection 58-55-501 (1), (2),
318 (3), (4), (5), (6), (7), (9), (10), (12), (14), or (15), or who fails to comply with a citation issued
319 under this section after it is final, is guilty of a class A misdemeanor. Any person who violates the
320 provisions of Subsection 58-55-501 (8) may not be awarded and may not accept a contract for the
321 performance of the work.
322 (2) Any person who violates the provisions of Subsection 58-55-501 (13) is guilty of an
323 infraction unless the violator did so with the intent to deprive the person to whom money is to be
324 paid of the money received, in which case the violator is guilty of theft, as classified in Section
325 76-6-412 .
326 (3) Grounds for immediate suspension of the licensee's license by the division and the
327 board include the issuance of a citation for violation of Subsection 58-55-308 (2) or Section
328 58-55-501 or the failure by a licensee to make application to, report to, or notify the division with
329 respect to any matter for which application, notification, or reporting is required under this chapter
330 or rules adopted under this chapter, including applying to the division for a new license to engage
331 in a new specialty classification or to do business under a new form of organization or business
332 structure, filing with the division current financial statements, notifying the division concerning
333 loss of insurance coverage, or change in qualifier.
334 (4) (a) If upon inspection or investigation, the division concludes that a person has violated
335 the provisions of Subsection 58-55-308 (2) or Subsections 58-55-501 (1), (2), (3), (9), (10), (12),
336 (14), (19), or any rule or order issued with respect to these subsections, and that disciplinary action
337 is appropriate, the director or his designee from within the division for each alternative
338 respectively, shall, promptly issue a citation to the person according to this chapter and any
339 pertinent rules, attempt to negotiate a stipulated settlement, or notify the person to appear before
340 an adjudicative proceeding conducted under Title 63, Chapter 46b, Administrative Procedures Act.
341 (i) Any person who is in violation of the provisions of Subsection 58-55-308 (2) or
342 Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), or (19), as evidenced by an uncontested
343 citation, a stipulated settlement, or by a finding of violation in an adjudicative proceeding, may be
344 assessed a fine pursuant to this Subsection (4) and may, in addition to or in lieu of, be ordered to
345 cease and desist from violating Subsection 58-55-308 (2) or Subsection 58-55-501 (1), (2), (3), (9),
346 (10), (12), (14), or (19).
347 (ii) Except for a cease and desist order, the licensure sanctions cited in Section 58-55-401
348 may not be assessed through a citation.
349 (b) Each citation shall be in writing and describe with particularity the nature of the
350 violation, including a reference to the provision of the chapter, rule, or order alleged to have been
351 violated. The citation shall clearly state that the recipient must notify the division in writing within
352 20 calendar days of service of the citation if the recipient wishes to contest the citation at a hearing
353 conducted under Title 63, Chapter 46b, Administrative Procedures Act. The citation shall clearly
354 explain the consequences of failure to timely contest the citation or to make payment of any fines
355 assessed by the citation within the time specified in the citation.
356 (c) Each citation issued under this section, or a copy of each citation, may be served upon
357 any person upon whom a summons may be served in accordance with the Utah Rules of Civil
358 Procedure and may be made personally or upon his agent by a division investigator or by any
359 person specially designated by the director or by mail.
360 (d) If within 20 calendar days from the service of a citation, the person to whom the
361 citation was issued fails to request a hearing to contest the citation, the citation becomes the final
362 order of the division and is not subject to further agency review. The period to contest a citation
363 may be extended by the division for cause.
364 (e) The division may refuse to issue or renew, suspend, revoke, or place on probation the
365 license of a licensee who fails to comply with a citation after it becomes final.
366 (f) The failure of an applicant for licensure to comply with a citation after it becomes final
367 is a ground for denial of license.
368 (g) No citation may be issued under this section after the expiration of six months
369 following the occurrence of any violation.
370 (h) Fines shall be assessed by the director or his designee according to the following:
371 (i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
372 (ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000; and
373 (iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to
374 $2,000 for each day of continued offense.
375 (i) (i) For purposes of issuing a final order under this section and assessing a fine under
376 Subsection (4)(i), an offense constitutes a second or subsequent offense if:
377 (A) the division previously issued a final order determining that a person committed a first
378 or second offense in violation of Subsection 58-55-308 (2) or Subsection 58-55-501 (1), (2), (3),
379 (9), (10), (12), (14), or (19); or
380 (B) (I) the division initiated an action for a first or second offense;
381 (II) no final order has been issued by the division in the action initiated under Subsection
382 (4) (i)(i)(B)(I);
383 (III) the division determines during an investigation that occurred after the initiation of the
384 action under Subsection (4) (i)(i)(B)(I) that the person committed a second or subsequent violation
385 of the provisions of Subsection 58-55-308 (2) or Subsection 58-55-501 (1), (2), (3), (9), (10), (12),
386 (14), or (19); and
387 (IV) after determining that the person committed a second or subsequent offense under
388 Subsection (4) (i)(i)(B)(III), the division issues a final order on the action initiated under
389 Subsection (4) (i)(i)(B)(I).
390 (ii) In issuing a final order for a second or subsequent offense under Subsection (4) (i)(i),
391 the division shall comply with the requirements of this section.
392 (5) Any penalty imposed by the director under Subsection (4) (h) shall be deposited into
393 the Commerce Service Fund. Any penalty which is not paid may be collected by the director by
394 either referring the matter to a collection agency or bringing an action in the district court of the
395 county in which the person against whom the penalty is imposed resides or in the county where
396 the office of the director is located. Any county attorney or the attorney general of the state is to
397 provide legal assistance and advice to the director in any action to collect the penalty. In any
398 action brought to enforce the provisions of this section, reasonable attorney's fees and costs shall
399 be awarded.
Legislative Review Note
as of 1-22-02 3:20 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.