H.B. 105 Enrolled

CONTINUING EDUCATION FOR
CONTRACTORS
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: J. Stuart Adams

LONG TITLE
General Description:
This bill modifies provisions of the Utah Construction Trades Licensing Act.
Highlighted Provisions:
This bill:
. provides that noncompliance with continuing education requirements for licensed
contractors is unlawful conduct under the licensing act;
. provides for an exemption from the requirement; and
. provides for the issuance of a citation and other penalties.
Monies Appropriated in this Bill:
None
Other Special Clauses:
This bill takes effect on July 1, 2005.
Utah Code Sections Affected:
AMENDS:
58-55-501, as last amended by Chapters 198 and 257, Laws of Utah 2001
58-55-503, as last amended by Chapters 33 and 241, Laws of Utah 2002

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 58-55-501 is amended to read:
58-55-501. Unlawful conduct.
Unlawful conduct includes:
(1) engaging in a construction trade, acting as a contractor, an alarm business or

company, or an alarm company agent, or representing oneself to be engaged in a construction
trade or to be acting as a contractor in a construction trade requiring licensure, unless the person
doing any of these is appropriately licensed or exempted from licensure under this chapter;
(2) acting in a construction trade, as an alarm business or company, or as an alarm
company agent beyond the scope of the license held;
(3) hiring or employing in any manner an unlicensed person, other than an employee for
wages who is not required to be licensed under this chapter, to engage in a construction trade for
which licensure is required or to act as a contractor or subcontractor in a construction trade
requiring licensure;
(4) applying for or obtaining a building permit either for oneself or another when not
licensed or exempted from licensure as a contractor under this chapter;
(5) issuing a building permit to any person for whom there is no evidence of a current
license or exemption from licensure as a contractor under this chapter;
(6) applying for or obtaining a building permit for the benefit of or on behalf of any other
person who is required to be licensed under this chapter but who is not licensed or is otherwise
not entitled to obtain or receive the benefit of the building permit;
(7) failing to obtain a building permit when required by law or rule;
(8) submitting a bid for any work for which a license is required under this chapter by a
person not licensed or exempted from licensure as a contractor under this chapter;
(9) willfully or deliberately misrepresenting or omitting a material fact in connection with
an application to obtain or renew a license under this chapter;
(10) allowing one's license to be used by another except as provided by statute or rule;
(11) doing business under a name other than the name appearing on the license, except as
permitted by statute or rule;
(12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
journeyman plumber, residential journeyman plumber, journeyman electrician, master electrician,
or residential electrician, failing to directly supervise an apprentice under one's supervision or
exceeding the number of apprentices one is allowed to have under his supervision;

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(13) if licensed as a contractor or representing oneself to be a contractor, receiving any
funds in payment for a specific project from an owner or any other person, which funds are to pay
for work performed or materials and services furnished for that specific project, and after
receiving the funds to exercise unauthorized control over the funds by failing to pay the full
amounts due and payable to persons who performed work or furnished materials or services
within a reasonable period of time;
(14) employing as an alarm company an unlicensed individual as an alarm company agent,
except as permitted under the exemption from licensure provisions under Section 58-1-307 ;
(15) if licensed as an alarm company or alarm company agent, filing with the division
fingerprint cards for an applicant which are not those of the applicant, or are in any other way
false or fraudulent and intended to mislead the division in its consideration of the applicant for
licensure;
(16) if licensed under this chapter, willfully or deliberately disregarding or violating:
(a) the building or construction laws of this state or any political subdivision;
(b) the safety and labor laws applicable to a project;
(c) any provision of the health laws applicable to a project;
(d) the workers' compensation insurance laws of the state applicable to a project;
(e) the laws governing withholdings for employee state and federal income taxes,
unemployment taxes, FICA, or other required withholdings; or
(f) reporting, notification, and filing laws of this state or the federal government;
(17) aiding or abetting any person in evading the provisions of this chapter or rules
established under the authority of the division to govern this chapter;
(18) engaging in the construction trade or as a contractor for the construction of
residences of up to two units when not currently registered or exempt from registration as a
qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
Fund Act;
(19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
written contract the notification required in Section 38-11-108 ; [or]

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(20) wrongfully filing a mechanics' lien in violation of Section 38-1-25 [.]; or
(21) if licensed as a contractor, not completing a three-hour core education class and an
additional three hours of professional education approved by the division and the Construction
Services Commission within each two-year renewal cycle, beginning with the two-year renewal
cycle that starts July 1, 2005, and ends June 30, 2007 unless an exemption has been granted to the
licensee by the Construction Services Commission, with the concurrence of the division, except
that this Subsection (21) is repealed effective July1, 2010 and its implementation is subject to the
division receiving adequate funding for its implementation through a legislative appropriation.
Section 2. Section 58-55-503 is amended to read:
58-55-503. Penalty for unlawful conduct -- Citations.
(1) Any person who violates Subsection 58-55-308 (2) or Subsection 58-55-501 (1), (2),
(3), (4), (5), (6), (7), (9), (10), (12), (14), or (15), or who fails to comply with a citation issued
under this section after it is final, is guilty of a class A misdemeanor. Any person who violates the
provisions of Subsection 58-55-501 (8) may not be awarded and may not accept a contract for the
performance of the work.
(2) Any person who violates the provisions of Subsection 58-55-501 (13) is guilty of an
infraction unless the violator did so with the intent to deprive the person to whom money is to be
paid of the money received, in which case the violator is guilty of theft, as classified in Section
76-6-412 .
(3) Grounds for immediate suspension of the licensee's license by the division and the
commission include the issuance of a citation for violation of Subsection 58-55-308 (2) or Section
58-55-501 or the failure by a licensee to make application to, report to, or notify the division with
respect to any matter for which application, notification, or reporting is required under this
chapter or rules adopted under this chapter, including applying to the division for a new license to
engage in a new specialty classification or to do business under a new form of organization or
business structure, filing with the division current financial statements, notifying the division
concerning loss of insurance coverage, or change in qualifier.
(4) (a) If upon inspection or investigation, the division concludes that a person has

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violated the provisions of Subsection 58-55-308 (2) or Subsections 58-55-501 (1), (2), (3), (9),
(10), (12), (14), (19), (21) or any rule or order issued with respect to these subsections, and that
disciplinary action is appropriate, the director or the director's designee from within the division
shall promptly issue a citation to the person according to this chapter and any pertinent rules,
attempt to negotiate a stipulated settlement, or notify the person to appear before an adjudicative
proceeding conducted under Title 63, Chapter 46b, Administrative Procedures Act.
(i) Any person who is in violation of the provisions of Subsection 58-55-308 (2) or
Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), [or] (19), or (21) as evidenced by an
uncontested citation, a stipulated settlement, or by a finding of violation in an adjudicative
proceeding, may be assessed a fine pursuant to this Subsection (4) and may, in addition to or in
lieu of, be ordered to cease and desist from violating Subsection 58-55-308 (2) or Subsection
58-55-501 (1), (2), (3), (9), (10), (12), (14), [or] (19), or (21).
(ii) Except for a cease and desist order, the licensure sanctions cited in Section 58-55-401
may not be assessed through a citation.
(iii) (A) A person who receives a citation or is fined for violating Subsection
58-55-501 (21) may also be issued a cease and desist order from engaging in work to be
performed by a contractor licensed under this chapter unless the person meets the continuing
education requirement within 30 days after receipt of the citation or fine.
(B) The order, if issued, shall be removed upon the person's completion of the continuing
education requirement.
(C) This Subsection (4)(a)(iii) is repealed effective July 1, 2010.
(b) Each citation shall be in writing and describe with particularity the nature of the
violation, including a reference to the provision of the chapter, rule, or order alleged to have been
violated. The citation shall clearly state that the recipient must notify the division in writing within
20 calendar days of service of the citation if the recipient wishes to contest the citation at a
hearing conducted under Title 63, Chapter 46b, Administrative Procedures Act. The citation shall
clearly explain the consequences of failure to timely contest the citation or to make payment of
any fines assessed by the citation within the time specified in the citation.

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(c) Each citation issued under this section, or a copy of each citation, may be served upon
any person upon whom a summons may be served:
(i) in accordance with the Utah Rules of Civil Procedure;
(ii) personally or upon the person's agent by a division investigator or by any person
specially designated by the director; or
(iii) by mail.
(d) If within 20 calendar days from the service of a citation, the person to whom the
citation was issued fails to request a hearing to contest the citation, the citation becomes the final
order of the division and is not subject to further agency review. The period to contest a citation
may be extended by the division for cause.
(e) The division may refuse to issue or renew, suspend, revoke, or place on probation the
license of a licensee who fails to comply with a citation after it becomes final.
(f) The failure of an applicant for licensure to comply with a citation after it becomes final
is a ground for denial of license.
(g) No citation may be issued under this section after the expiration of six months
following the occurrence of any violation.
(h) Fines shall be assessed by the director or the director's designee according to the
following:
(i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
(ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000;
and
(iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to
$2,000 for each day of continued offense.
(i) (i) For purposes of issuing a final order under this section and assessing a fine under
Subsection (4)(i), an offense constitutes a second or subsequent offense if:
(A) the division previously issued a final order determining that a person committed a first
or second offense in violation of Subsection 58-55-308 (2) or Subsection 58-55-501 (1), (2), (3),
(9), (10), (12), (14), or (19); or

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(B) (I) the division initiated an action for a first or second offense;
(II) no final order has been issued by the division in the action initiated under Subsection
(4)(i)(i)(B)(I);
(III) the division determines during an investigation that occurred after the initiation of
the action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent
violation of the provisions of Subsection 58-55-308 (2) or Subsection 58-55-501 (1), (2), (3), (9),
(10), (12), (14), or (19); and
(IV) after determining that the person committed a second or subsequent offense under
Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under
Subsection (4)(i)(i)(B)(I).
(ii) In issuing a final order for a second or subsequent offense under Subsection (4)(i)(i),
the division shall comply with the requirements of this section.
(5) Any penalty imposed by the director under Subsection (4)(h) shall be deposited into
the Commerce Service Fund. Any penalty which is not paid may be collected by the director by
either referring the matter to a collection agency or bringing an action in the district court of the
county in which the person against whom the penalty is imposed resides or in the county where
the office of the director is located. Any county attorney or the attorney general of the state is to
provide legal assistance and advice to the director in any action to collect the penalty. In any
action brought to enforce the provisions of this section, reasonable attorney's fees and costs shall
be awarded.
Section 3. Effective date.
This bill takes effect on July 1, 2005.

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