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H.B. 232 Enrolled





Sponsor: Darin G. Peterson

                  LONG TITLE
                  General Description:
                      This bill amends provisions related to water well drilling.
                  Highlighted Provisions:
                      This bill:
                      .    amends the definition of "well drilling";
                      .    amends well drilling licensing and construction provisions; and
                      .    amends well drilling bonding provisions.
                  Monies Appropriated in this Bill:
                  Other Special Clauses:
                  Utah Code Sections Affected:
                      58-55-305, as last amended by Chapter 104, Laws of Utah 2003
                      73-3-24, as last amended by Chapter 25, Laws of Utah 1987
                      73-3-25, as last amended by Chapters 25 and 161, Laws of Utah 1987
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 58-55-305 is amended to read:
                       58-55-305. Exemptions from licensure.
                      (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
                  persons may engage in acts or practices included within the practice of construction trades,
                  subject to the stated circumstances and limitations, without being licensed under this chapter:
                      (a) an authorized representative of the United States government or an authorized

                  employee of the state or any of its political subdivisions when working on construction work of
                  the state or the subdivision, and when acting within the terms of the person's trust, office, or

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                      (b) a person engaged in construction or operation incidental to the construction and repair
                  of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation districts,
                  and drainage districts or construction and repair relating to farming, dairying, agriculture,
                  livestock or poultry raising, metal and coal mining, quarries, sand and gravel excavations, well
                  drilling, as defined in Subsection 73-3-24 (3), hauling to and from construction sites, and
                      (c) public utilities operating under the rules of the Public Service Commission on
                  construction work incidental to their own business;
                      (d) sole owners of property engaged in building:
                      (i) no more than one residential structure per year and no more than three residential
                  structures per five years on their property for their own noncommercial, nonpublic use; except, a
                  person other than the property owner or individuals described in Subsection (1)(e), who engages
                  in building the structure must be licensed under this chapter if the person is otherwise required to
                  be licensed under this chapter; or
                      (ii) structures on their property for their own noncommercial, nonpublic use which are
                  incidental to a residential structure on the property, including sheds, carports, or detached
                      (e) (i) a person engaged in construction or renovation of a residential building for
                  noncommercial, nonpublic use if that person:
                      (A) works without compensation other than token compensation that is not considered
                  salary or wages; and
                      (B) works under the direction of the property owner who engages in building the
                      (ii) for purposes of this Subsection (1)(e), "token compensation" means compensation
                  paid by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
                  exempted from licensure under this Subsection (1)(e), that is:
                      (A) minimal in value when compared with the fair market value of the services provided

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                  by the person;
                      (B) not related to the fair market value of the services provided by the person; and
                      (C) is incidental to providing of services by the person including paying for or providing
                  meals or refreshment while services are being provided, or paying reasonable transportation costs
                  incurred by the person in travel to the site of construction;
                      (f) a person engaged in the sale or merchandising of personal property that by its design
                  or manufacture may be attached, installed, or otherwise affixed to real property who has
                  contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
                  attach that property;
                      (g) a contractor submitting a bid on a federal aid highway project, if, before undertaking
                  construction under that bid, the contractor is licensed under this chapter;
                      (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
                  improvement of a building with a contracted or agreed value of less than $1,000, including both
                  labor and materials, and including all changes or additions to the contracted or agreed upon work;
                      (ii) notwithstanding Subsection (1)(h)(i):
                      (A) work in the plumbing and electrical trades must be performed by a licensed electrician
                  or plumber except as otherwise provided in this section; and
                      (B) installation, repair, or replacement of a residential or commercial gas appliance or a
                  combustion system must be performed by a person who has received certification under
                  Subsection 58-55-308 (2);
                      (i) a person practicing a specialty contractor classification or construction trade which is
                  not classified by rule by the director as significantly impacting the public's health, safety, and
                      (j) owners and lessees of property and persons regularly employed for wages by owners
                  or lessees of property or their agents for the purpose of maintaining the property, are exempt from
                  this chapter when doing work upon the property;
                      (k) (i) a person engaged in minor plumbing work incidental to the replacement or repair
                  of a fixture or an appliance in a residential or small commercial building, or structure used for

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                  agricultural use, as defined in Section 58-56-4 , provided that no modification is made to:
                      (A) existing culinary water, soil, waste, or vent piping; or
                      (B) a gas appliance or combustion system;
                      (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or an
                  appliance is not included in the exemption provided under Subsection (1)(k)(i);
                      (l) a person who ordinarily would be subject to the plumber licensure requirements under
                  this chapter when installing or repairing a water conditioner or other water treatment apparatus if
                  the conditioner or apparatus:
                      (i) meets the appropriate state construction codes or local plumbing standards; and
                      (ii) is installed or repaired under the direction of a person authorized to do the work
                  under an appropriate specialty contractor license;
                      (m) a person who ordinarily would be subject to the electrician licensure requirements
                  under this chapter when employed by or under contract with:
                      (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
                  contractors or constructors, or street railway systems; or
                      (ii) public service corporations, rural electrification associations, or municipal utilities
                  who generate, distribute, or sell electrical energy for light, heat, or power;
                      (n) a person involved in minor electrical work incidental to a mechanical or service
                  installation; and
                      (o) a student participating in construction trade education and training programs
                  approved by the commission with the concurrence of the director under the condition that:
                      (i) all work intended as a part of a finished product on which there would normally be an
                  inspection by a building inspector is, in fact, inspected and found acceptable by a licensed building
                  inspector; and
                      (ii) a licensed contractor obtains the necessary building permits.
                      (2) (a) A compliance agency as defined in Subsection 58-56-3 (4) that issues a building
                  permit to any person requesting a permit as a sole owner of property referred to in Subsection
                  (1)(d) shall notify the division, in writing or through electronic transmission, of the issuance of the

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                      (b) The division shall evaluate the effectiveness of the notification requirement under
                  Subsection (2)(a) and report its findings, including any recommendations for modification to or
                  termination of the requirement, to the Legislature's Business and Labor Interim Committee prior
                  to the 2008 General Session.
                      Section 2. Section 73-3-24 is amended to read:
                       73-3-24. Definitions.
                      As used in this chapter:
                      (1) "Well" means an excavation or opening into the ground made by digging, boring,
                  drilling, jetting, driving, or any other artificial method for utilizing or monitoring underground
                      (2) "Well driller" means any person that constructs a well for compensation or otherwise.
                      (3) "Well drilling" means the act of drilling, constructing, repairing, [or] renovating,
                  deepening, cleaning, developing, or abandoning a well[, including all incidental work].
                      Section 3. Section 73-3-25 is amended to read:
                       73-3-25. Wells driller's license -- Bond -- Revocation or suspension for
                      (1) (a) Every person that constructs a well in the state shall obtain a license from the
                  state engineer.
                      (b) The state engineer shall enact rules defining the form, the expiration date, and the
                  renewal cycle of the application for a license.
                      (c) [All well] Well drillers' licenses [expire on the 31st day of December following their
                  issuance and] are not transferable. The state engineer shall enact rules for well construction
                  according to the procedures and requirements of Title 63, Chapter 46a, Utah Administrative
                  Rulemaking Act.
                      (2) (a) (i) [No] A person [may construct] who constructs a well in this state [without]
                  must first [obtaining] obtain a license as provided in this section.
                      (ii) [No] Before a well driller's license will be issued [without], the applicant [filing a

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                  $5,000 penal] must file a well driller bond with the state engineer.
                      (iii) The bond shall be made payable to the Office of the State Engineer.
                      (iv) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
                  state engineer may make rules to set the amount, form, and general administrative requirements of
                  a well driller bond. Proper compliance with the provisions of this section and the rules enacted
                  under the authority of this section are required to obtain or renew a license.
                      (b) (i) Well drillers shall comply with the rules enacted by the state engineer under this
                      (ii) If the state engineer determines, following an investigation, that the licensee has failed
                  to comply with these rules, the state engineer may revoke or suspend the license, and exact the
                  bond and deposit the money as a nonlapsing dedicated credit.
                      (iii) The state engineer may expend the funds to investigate or correct any deficiencies
                  which could adversely affect the public interest resulting from noncompliance with the rules
                  promulgated under this chapter by any well driller.
                      (iv) The state engineer may refuse to issue a license to a well driller if it appears that there
                  has been a violation of the rules or a failure to comply with Section 73-3-22 .

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