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First Substitute S.B. 89

Senator Parley G. Hellewell proposes the following substitute bill:


             1     
CONTRACTOR LICENSING AMENDMENTS

             2     
2004 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Parley G. Hellewell

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill modifies the Construction Trades Licensing Act.
             9      Highlighted Provisions:
             10          This bill:
             11          .    creates a requirement that a plumbing and electrical business maintains its license
             12      for a period of five years to satisfy the individual qualifier requirements.
             13      Monies Appropriated in this Bill:
             14          None
             15      Other Special Clauses:
             16          None
             17      Utah Code Sections Affected:
             18      AMENDS:
             19          58-55-304, as last amended by Chapter 241, Laws of Utah 2002
             20     
             21      Be it enacted by the Legislature of the state of Utah:
             22          Section 1. Section 58-55-304 is amended to read:
             23           58-55-304. Licensee names -- License number use -- License qualifier.
             24          (1) No license may be issued by the division in a name that is identical to or so
             25      resembles the name of another licensee that the division determines that it may result in



             26      confusion or mistake.
             27          (2) The contractor's license number shall be made a part of all permit applications,
             28      contracts, agreements, or bids when a license is required.
             29          (3) The division may issue a license in the name of an individual or the name of a
             30      business entity for which the individual acts as a qualifier, in accordance with the following:
             31          (a) An individual shall:
             32          (i) submit an application in the individual's name;
             33          (ii) demonstrate the individual's own financial responsibility; and
             34          (iii) pass the required examination and meet all other requirements of this chapter.
             35          (b) A business entity shall:
             36          (i) submit the application in the name of and on behalf of the business entity;
             37          (ii) list the individual as the qualifier;
             38          (iii) demonstrate financial responsibility of the business entity if applying for a
             39      contractor's license;
             40          (iv) provide evidence that the individual qualifier has passed the required examination;
             41      and
             42          (v) meet all other requirements of this chapter.
             43          (4) A person acting as a qualifier for a business entity licensee must demonstrate to the
             44      division that the individual is an owner, officer, or manager within that business entity who
             45      exercises material authority in the conduct of that business entity's contracting business by:
             46          (a) making substantive technical and administrative decisions relating to the work
             47      performed for which a license is required under this chapter;
             48          (b) hiring, promoting, transferring, laying off, disciplining, directing, or discharging
             49      employees of the licensee either by himself or through others; and
             50          (c) not being involved in any other employment or activity which conflicts with the
             51      individual's duties and responsibilities to ensure the licensee's performance of work regulated
             52      under this chapter does not jeopardize the public health, safety, and welfare.
             53          (5) (a) Except as provided in [Subsection] Subsections (5)(b) and (c), it is the duty and
             54      responsibility of the licensee and the qualifier to comply with the provisions of this section.
             55      Failure to comply with the requirements of this section may be considered unprofessional
             56      conduct by the licensee, the qualifier, or both.



             57          (b) If a licensee business entity has maintained its license and has not violated the
             58      requirements of this chapter or Sections 58-55-101 through 58-55-604 for a period of ten
             59      consecutive years, the business entity may maintain its license under this chapter by recording
             60      an active employee name and registration/license number from the applicable trade on the
             61      renewal application in order to comply with the individual qualifier requirements of this
             62      section. However, this Subsection (5)(b) shall not apply if more than 50% of the ownership of
             63      the business entity has been transferred at any time during the ten-year period.
             64          (c) If a plumbing and electrical business entity has maintained its license and has not
             65      violated the requirements of this chapter or Sections 58-55-101 through 58-55-604 for a period
             66      of five consecutive years, the business entity may maintain its license under this chapter by
             67      recording an active employee name and registration/license number from the applicable trade
             68      on the renewal application in order to comply with the individual qualifier requirements of this
             69      section. However, this Subsection (5)(c) shall not apply if more than 50% of the ownership of
             70      the business entity has been transferred at any time during the five-year period.
             71          (6) If an individual qualifying on behalf of a business entity issued a license under this
             72      chapter ceases association with that entity as required in Subsection (4), the licensee shall
             73      notify the division in writing within ten days after cessation of association or employment. If
             74      notice is given, the license shall remain in force for 60 days after the date of cessation of
             75      association or employment. The licensee shall replace the original qualifier with another
             76      individual qualifier within the 60-day period or the license shall be automatically suspended.
             77          (7) Failure to notify the division of cessation of association or employment of a
             78      qualifier as required in Subsection (6) may result in immediate suspension of the license upon a
             79      finding of good cause.


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