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H.B. 302

             1     

REGULATION OF CONSTRUCTION INDUSTRY

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: J. Stuart Adams

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill transfers the regulation and administration of contractor related regulation
             9      from the Division of Occupations and Professional Licensing to the Division of Real
             10      Estate.
             11      Highlighted Provisions:
             12          This bill:
             13          .    addresses the Division of Real Estate's authority related to liens;
             14          .    directs the Division of Real Estate to oversee the construction notice registry;
             15          .    requires the Division of Real Estate to administer the Residence Lien Restriction
             16      and Lien Recovery Fund Act;
             17          .    transfers the licensure and regulation of the construction trade industry to the
             18      Division of Real Estate including the following provisions:
             19              .    amends definitions;
             20              .    amends language related to the Construction Services Commission;
             21              .    establishes adjudication proceeding requirements;
             22              .    amends provisions related to licensing boards;
             23              .    establishes application process for licensing and notification requirements;
             24              .    addresses the terms of licensure and provides renewal procedures;
             25              .    provides exemptions from licensure to certain persons;
             26              .    provides the division with access to Bureau of Criminal Identification records;
             27              .    provides for licensure by endorsement;



             28              .    provides for the division issuing temporary or restricted licenses, and adopting
             29      rules permitting inactive licenses;
             30              .    requires written agreement for the voluntary surrender of a license;
             31              .    amends provisions relating to denial of licensure and disciplinary proceedings;
             32              .    provides for building inspectors investigating on behalf of the division;
             33              .    establishes procedures for administrative review and creates special appeals
             34      boards;
             35              .    provides for suspensions;
             36              .    establishes a diversion program in disciplinary matters;
             37              .    amends the definitions of unlawful and unprofessional conduct;
             38              .    establishes a maximum civil penalty;
             39              .    requires division to comply with court-ordered discipline; and
             40              .    amends payment provisions relating to contractors, subcontractors and
             41      suppliers;
             42          .    transfers the administration of the Utah Uniform Building Standards Act to the
             43      Division of Real Estate and includes the following provisions:
             44              .    amends definitions; and
             45              .    amends provisions relating appointment and responsibilities of the Building
             46      Inspector Licensing Board and the collaboration between the division and the
             47      board;
             48          .    provides access to the Division of Real Estate of an index to expunged records; and
             49          .     makes conforming and technical amendments.
             50      Monies Appropriated in this Bill:
             51          None
             52      Other Special Clauses:
             53          This bill takes effect on July 1, 2005.
             54      Utah Code Sections Affected:
             55      AMENDS:
             56          9-4-102, as last amended by Chapter 18, Laws of Utah 2004
             57          10-9-106.5, as last amended by Chapter 253, Laws of Utah 2001
             58          11-36-102, as last amended by Chapter 239, Laws of Utah 2002



             59          13-8-5, as last amended by Chapter 9, Laws of Utah 2001
             60          17-27-105.5, as last amended by Chapter 253, Laws of Utah 2001
             61          19-5-121, as enacted by Chapter 274, Laws of Utah 2001
             62          26-15-3, as last amended by Chapter 218, Laws of Utah 1995
             63          26A-1-113, as last amended by Chapter 249, Laws of Utah 2002
             64          26A-1-114, as last amended by Chapter 171, Laws of Utah 2003
             65          35A-4-303, as last amended by Chapter 21, Laws of Utah 2004
             66          38-1-7 (Effective 05/01/05), as last amended by Chapters 85 and 250, Laws of Utah
             67      2004
             68          38-1-11, as last amended by Chapters 42, 85 and 188, Laws of Utah 2004
             69          38-1-27 (Effective 05/01/05), as repealed and reenacted by Chapter 250, Laws of Utah
             70      2004
             71          38-11-102, as last amended by Chapters 42 and 85, Laws of Utah 2004
             72          38-11-103, as last amended by Chapter 172, Laws of Utah 1995
             73          38-11-204, as last amended by Chapter 42, Laws of Utah 2004
             74          38-11-207, as last amended by Chapter 198, Laws of Utah 2001
             75          38-11-301, as last amended by Chapter 198, Laws of Utah 2001
             76          38-11-302, as last amended by Chapters 20 and 172, Laws of Utah 1995
             77          57-23-4, as enacted by Chapter 262, Laws of Utah 1991
             78          58-1-202, as last amended by Chapter 241, Laws of Utah 2002
             79          58-1-203, as last amended by Chapter 241, Laws of Utah 2002
             80          58-1-301.5, as enacted by Chapter 214, Laws of Utah 2002
             81          58-3a-102, as enacted by Chapter 260, Laws of Utah 1996
             82          58-3a-602, as enacted by Chapter 260, Laws of Utah 1996
             83          58-22-102, as last amended by Chapter 259, Laws of Utah 1996
             84          58-22-602, as enacted by Chapter 259, Laws of Utah 1996
             85          58-53-304, as renumbered and amended by Chapter 191, Laws of Utah 1998
             86          58-53-602, as enacted by Chapter 191, Laws of Utah 1998
             87          59-12-102, as last amended by Chapters 1, 156, 255, 298 and 300, Laws of Utah 2004
             88          63-2-302, as last amended by Chapters 90 and 173, Laws of Utah 2004
             89          63-38-3.2, as last amended by Chapter 16, Laws of Utah 2003


             90          63-46b-1, as last amended by Chapter 235, Laws of Utah 2004
             91          63A-5-206, as last amended by Chapters 216 and 231, Laws of Utah 2000
             92          70D-1-19, as last amended by Chapter 75, Laws of Utah 2004
             93          77-18-15, as last amended by Chapter 227, Laws of Utah 1999
             94      ENACTS:
             95          61-2e-104, Utah Code Annotated 1953
             96          61-2e-312, Utah Code Annotated 1953
             97          61-2e-313, Utah Code Annotated 1953
             98          61-2e-314, Utah Code Annotated 1953
             99          61-2e-315, Utah Code Annotated 1953
             100          61-2e-316, Utah Code Annotated 1953
             101          61-2e-317, Utah Code Annotated 1953
             102          61-2e-404, Utah Code Annotated 1953
             103          61-2e-405, Utah Code Annotated 1953
             104          61-2e-406, Utah Code Annotated 1953
             105          61-2e-504, Utah Code Annotated 1953
             106          61-2e-505, Utah Code Annotated 1953
             107      RENUMBERS AND AMENDS:
             108          61-2e-101, (Renumbered from 58-55-101, as renumbered and amended by Chapter 181,
             109      Laws of Utah 1994)
             110          61-2e-102, (Renumbered from 58-55-102, as last amended by Chapters 39 and 75,
             111      Laws of Utah 2004)
             112          61-2e-103, (Renumbered from 58-55-103, as last amended by Chapters 61 and 90,
             113      Laws of Utah 2004)
             114          61-2e-201, (Renumbered from 58-55-201, as last amended by Chapter 241, Laws of
             115      Utah 2002)
             116          61-2e-301, (Renumbered from 58-55-301, as last amended by Chapter 317, Laws of
             117      Utah 2000)
             118          61-2e-302, (Renumbered from 58-55-302, as last amended by Chapters 90 and 236,
             119      Laws of Utah 2004)
             120          61-2e-303, (Renumbered from 58-55-303, as last amended by Chapter 198, Laws of


             121      Utah 2001)
             122          61-2e-304, (Renumbered from 58-55-304, as last amended by Chapter 14, Laws of
             123      Utah 2004)
             124          61-2e-305, (Renumbered from 58-55-305, as last amended by Chapters 39 and 191,
             125      Laws of Utah 2004)
             126          61-2e-306, (Renumbered from 58-55-306, as last amended by Chapter 241, Laws of
             127      Utah 2002)
             128          61-2e-307, (Renumbered from 58-55-307, as last amended by Chapter 241, Laws of
             129      Utah 2002)
             130          61-2e-308, (Renumbered from 58-55-308, as last amended by Chapter 39, Laws of
             131      Utah 2004)
             132          61-2e-309, (Renumbered from 58-55-310, as renumbered and amended by Chapter 181,
             133      Laws of Utah 1994)
             134          61-2e-310, (Renumbered from 58-55-311, as renumbered and amended by Chapter 317,
             135      Laws of Utah 2000)
             136          61-2e-311, (Renumbered from 58-55-312, as renumbered and amended by Chapter 317,
             137      Laws of Utah 2000)
             138          61-2e-401, (Renumbered from 58-55-401, as renumbered and amended by Chapters
             139      181 and 308, Laws of Utah 1994)
             140          61-2e-402, (Renumbered from 58-55-402, as last amended by Chapters 233 and 317,
             141      Laws of Utah 2000)
             142          61-2e-403, (Renumbered from 58-55-403, as last amended by Chapter 233, Laws of
             143      Utah 2000)
             144          61-2e-501 (Effective 07/01/05), (Renumbered from 58-55-501 (Effective 07/01/05), as
             145      last amended by Chapter 45, Laws of Utah 2004)
             146          61-2e-502, (Renumbered from 58-55-502, as last amended by Chapter 198, Laws of
             147      Utah 2001)
             148          61-2e-503 (Effective 07/01/05), (Renumbered from 58-55-503 (Effective 07/01/05), as
             149      last amended by Chapter 45, Laws of Utah 2004)
             150          61-2e-601, (Renumbered from 58-55-601, as renumbered and amended by Chapter 181,
             151      Laws of Utah 1994)


             152          61-2e-602, (Renumbered from 58-55-602, as last amended by Chapter 365, Laws of
             153      Utah 1999)
             154          61-2e-603, (Renumbered from 58-55-603, as renumbered and amended by Chapter 181,
             155      Laws of Utah 1994)
             156          61-2e-604, (Renumbered from 58-55-604, as renumbered and amended by Chapter 181,
             157      Laws of Utah 1994)
             158          61-2f-101, (Renumbered from 58-56-1, as enacted by Chapter 269, Laws of Utah 1989)
             159          61-2f-102, (Renumbered from 58-56-2, as enacted by Chapter 269, Laws of Utah 1989)
             160          61-2f-103, (Renumbered from 58-56-3, as last amended by Chapter 75, Laws of Utah
             161      2004)
             162          61-2f-104, (Renumbered from 58-56-5, as last amended by Chapter 75, Laws of Utah
             163      2002)
             164          61-2f-201, (Renumbered from 58-56-4, as last amended by Chapters 75 and 110, Laws
             165      of Utah 2004)
             166          61-2f-202, (Renumbered from 58-56-6, as last amended by Chapter 75, Laws of Utah
             167      2002)
             168          61-2f-203, (Renumbered from 58-56-7, as last amended by Chapter 75, Laws of Utah
             169      2002)
             170          61-2f-204, (Renumbered from 58-56-8, as last amended by Chapter 75, Laws of Utah
             171      2002)
             172          61-2f-205, (Renumbered from 58-56-11, as last amended by Chapter 196, Laws of Utah
             173      1997)
             174          61-2f-206, (Renumbered from 58-56-12, as last amended by Chapter 75, Laws of Utah
             175      2004)
             176          61-2f-207, (Renumbered from 58-56-13, as enacted by Chapter 293, Laws of Utah
             177      1990)
             178          61-2f-208, (Renumbered from 58-56-14, as enacted by Chapter 293, Laws of Utah
             179      1990)
             180          61-2f-209, (Renumbered from 58-56-15, as last amended by Chapter 75, Laws of Utah
             181      2004)
             182          61-2f-210, (Renumbered from 58-56-16, as last amended by Chapter 42, Laws of Utah


             183      1999)
             184          61-2f-211, (Renumbered from 58-56-17, as last amended by Chapter 229, Laws of Utah
             185      2003)
             186          61-2f-212, (Renumbered from 58-56-17.5, as enacted by Chapter 385, Laws of Utah
             187      1997)
             188          61-2f-301, (Renumbered from 58-56-8.5, as enacted by Chapter 262, Laws of Utah
             189      1995)
             190          61-2f-302, (Renumbered from 58-56-9, as last amended by Chapter 75, Laws of Utah
             191      2002)
             192      Uncodified Material Affected:
             193      ENACTS UNCODIFIED MATERIAL
             194     
             195      Be it enacted by the Legislature of the state of Utah:
             196          Section 1. Section 9-4-102 is amended to read:
             197           9-4-102. Definitions.
             198          As used in this chapter:
             199          (1) "Accessible housing" means housing which has been constructed or modified to be
             200      accessible, as described in the construction codes adopted under Section [ 58-56-4 ] 61-2f-201 .
             201          (2) "Director" means the director of the division.
             202          (3) "Division" means the Division of Housing and Community Development.
             203          Section 2. Section 10-9-106.5 is amended to read:
             204           10-9-106.5. Manufactured homes.
             205          (1) For purposes of this section, a manufactured home is the same as defined in Section
             206      [ 58-56-3 ] 61-2f-103 , except that the manufactured home must be attached to a permanent
             207      foundation in accordance with plans providing for vertical loads, uplift, and lateral forces and
             208      frost protection in compliance with the applicable building code. All appendages, including
             209      carports, garages, storage buildings, additions, or alterations must be built in compliance with
             210      the applicable building code.
             211          (2) A manufactured home may not be excluded from any zone or area in which a
             212      single-family residence would be permitted, provided the manufactured home complies with all
             213      local zoning, building code, and subdivision requirements, including any restrictive covenants,


             214      applicable to single family residence within that zone or area.
             215          (3) A municipality may not:
             216          (a) adopt or enforce an ordinance or regulation that treats a proposed development that
             217      includes manufactured homes differently than one that does not include manufactured homes;
             218      or
             219          (b) reject a development plan based on the fact that the development is expected to
             220      contain manufactured homes.
             221          Section 3. Section 11-36-102 is amended to read:
             222           11-36-102. Definitions.
             223          As used in this chapter:
             224          (1) "Building permit fee" means the fees charged to enforce the uniform codes adopted
             225      pursuant to Title [58] 61, Chapter [56] 2f, Utah Uniform Building Standards Act, that are not
             226      greater than the fees indicated in the appendix to the Uniform Building Code.
             227          (2) "Capital facilities plan" means the plan required by Section 11-36-201 .
             228          (3) "Development activity" means any construction or expansion of a building,
             229      structure, or use, any change in use of a building or structure, or any changes in the use of land
             230      that creates additional demand and need for public facilities.
             231          (4) "Development approval" means any written authorization from a local political
             232      subdivision that authorizes the commencement of development activity.
             233          (5) "Enactment" means:
             234          (a) a municipal ordinance, for municipalities;
             235          (b) a county ordinance, for counties; and
             236          (c) a governing board resolution, for special districts.
             237          (6) "Hookup fees" means reasonable fees, not in excess of the approximate average
             238      costs to the political subdivision, for services provided for and directly attributable to the
             239      connection to utility services, including gas, water, sewer, power, or other municipal, county,
             240      or independent special district utility services.
             241          (7) (a) "Impact fee" means a payment of money imposed upon development activity as
             242      a condition of development approval.
             243          (b) "Impact fee" does not mean a tax, a special assessment, a building permit fee, a
             244      hookup fee, a fee for project improvements, or other reasonable permit or application fee.


             245          (8) (a) "Local political subdivision" means a county, a municipality, or a special district
             246      created under Title 17A, Special Districts.
             247          (b) "Local political subdivision" does not mean school districts, whose impact fee
             248      activity is governed by Section 53A-20-100.5 .
             249          (9) "Private entity" means an entity with private ownership that provides culinary water
             250      that is required to be used as a condition of development.
             251          (10) (a) "Project improvements" means site improvements and facilities that are:
             252          (i) planned and designed to provide service for development resulting from a
             253      development activity; and
             254          (ii) necessary for the use and convenience of the occupants or users of development
             255      resulting from a development activity.
             256          (b) "Project improvements" does not mean system improvements.
             257          (11) "Proportionate share" means the cost of public facility improvements that are
             258      roughly proportionate and reasonably related to the service demands and needs of any
             259      development activity.
             260          (12) "Public facilities" means only the following capital facilities that have a life
             261      expectancy of ten or more years and are owned or operated by or on behalf of a local political
             262      subdivision or private entity:
             263          (a) water rights and water supply, treatment, and distribution facilities;
             264          (b) wastewater collection and treatment facilities;
             265          (c) storm water, drainage, and flood control facilities;
             266          (d) municipal power facilities;
             267          (e) roadway facilities;
             268          (f) parks, recreation facilities, open space, and trails; and
             269          (g) public safety facilities.
             270          (13) (a) "Public safety facility" means a building constructed or leased to house police,
             271      fire, or other public safety entities.
             272          (b) "Public safety facility" does not mean a jail, prison, or other place of involuntary
             273      incarceration.
             274          (14) (a) "Roadway facilities" means streets or roads that have been designated on an
             275      officially adopted subdivision plat, roadway plan, or general plan of a political subdivision,


             276      together with all necessary appurtenances.
             277          (b) "Roadway facilities" includes associated improvements to federal or state roadways
             278      only when the associated improvements:
             279          (i) are necessitated by the new development; and
             280          (ii) are not funded by the state or federal government.
             281          (c) "Roadway facilities" does not mean federal or state roadways.
             282          (15) (a) "Service area" means a geographic area designated by a local political
             283      subdivision on the basis of sound planning or engineering principles in which a defined set of
             284      public facilities provide service within the area.
             285          (b) "Service area" may include the entire local political subdivision.
             286          (16) (a) "System improvements" means:
             287          (i) existing public facilities that are designed to provide services to service areas within
             288      the community at large; and
             289          (ii) future public facilities identified in a capital facilities plan that are intended to
             290      provide services to service areas within the community at large.
             291          (b) "System improvements" does not mean project improvements.
             292          Section 4. Section 13-8-5 is amended to read:
             293           13-8-5. Definitions -- Limitation on retention proceeds withheld -- Deposit in
             294      interest-bearing escrow account -- Release of proceeds -- Payment to subcontractors --
             295      Penalty -- No waiver.
             296          (1) As used in this section:
             297          (a) (i) "Construction contract" means a written agreement between the parties relative
             298      to the design, construction, alteration, repair, or maintenance of a building, structure, highway,
             299      appurtenance, appliance, or other improvements to real property, including moving,
             300      demolition, and excavating for nonresidential commercial or industrial construction projects.
             301          (ii) If the construction contract is for construction of a project that is part residential
             302      and part nonresidential, this section applies only to that portion of the construction project that
             303      is nonresidential as determined pro rata based on the percentage of the total square footage of
             304      the project that is nonresidential.
             305          (b) "Construction lender" means any person, including a bank, trust company, savings
             306      bank, industrial bank, land bank, safe deposit company, private banker, savings and loan


             307      association, credit union, cooperative bank, small loan company, sales finance company,
             308      investment company, or any other financial institution that advances monies to a borrower for
             309      the purpose of making alterations or improvements to real property. A construction lender
             310      does not include a person or entity who is acting in the capacity of contractor, original
             311      contractor, or subcontractor.
             312          (c) "Contractor" means a person who, for compensation other than wages as an
             313      employee, undertakes any work in a construction trade, as defined in Section [ 58-55-102 ]
             314      61-2e-102 and includes:
             315          (i) any person engaged as a maintenance person who regularly engages in activities set
             316      forth in Section [ 58-55-102 ] 61-2e-102 as a construction trade; or
             317          (ii) a construction manager who performs management and counseling services on a
             318      construction project for a fee.
             319          (d) "Original contractor" is as provided in Section 38-1-2 .
             320          (e) "Owner" means the person who holds any legal or equitable title or interest in
             321      property. Owner does not include a construction lender unless the construction lender has an
             322      ownership interest in the property other than solely as a construction lender.
             323          (f) "Public agency" means any state agency or political subdivision of the state that
             324      enters into a construction contract for an improvement of public property.
             325          (g) "Retention payment" means release of retention proceeds as defined in Subsection
             326      (1)(h).
             327          (h) "Retention proceeds" means monies earned by a contractor or subcontractor but
             328      retained by the owner or public agency pursuant to the terms of a construction contract to
             329      guarantee payment or performance by the contractor or subcontractor of the construction
             330      contract.
             331          (i) "Subcontractor" is as defined in Section 38-1-2 .
             332          (j) "Successful party" has the same meaning as it does under Section 38-1-18 .
             333          (2) (a) This section is applicable to all construction contracts relating to construction
             334      work or improvements entered into on or after July 1, 1999, between:
             335          (i) an owner or public agency and an original contractor;
             336          (ii) an original contractor and a subcontractor; and
             337          (iii) subcontractors under a contract described in Subsection (2)(a)(i) or (ii).


             338          (b) This section does not apply to a construction lender.
             339          (3) (a) Notwithstanding Section [ 58-55-603 ,] 61-2e-603 the retention proceeds
             340      withheld and retained from any payment due under the terms of the construction contract may
             341      not exceed 5% of the payment:
             342          (i) by the owner or public agency to the original contractor;
             343          (ii) by the original contractor to any subcontractor; or
             344          (iii) by a subcontractor.
             345          (b) The total retention proceeds withheld may not exceed 5% of the total construction
             346      price.
             347          (c) The percentage of the retention proceeds withheld and retained pursuant to a
             348      construction contract between the original contractor and a subcontractor or between
             349      subcontractors shall be the same retention percentage as between the owner and the original
             350      contractor if:
             351          (i) the retention percentage in the original construction contract between an owner and
             352      the original contractor is less than 5%; or
             353          (ii) after the original construction contract is executed but before completion of the
             354      construction contract the retention percentage is reduced to less than 5%.
             355          (4) (a) If any payment on a contract with a private contractor, firm, or corporation to do
             356      work for an owner or public agency is retained or withheld by the owner or the public agency,
             357      as retention proceeds, it shall be placed in an interest-bearing account.
             358          (b) The interest accrued under Subsection (4)(a) shall be:
             359          (i) for the benefit of the contractor and subcontractors; and
             360          (ii) paid after the project is completed and accepted by the owner or the public agency.
             361          (c) The contractor shall ensure that any interest accrued on the retainage is distributed
             362      by the contractor to subcontractors on a pro rata basis.
             363          (5) Any retention proceeds retained or withheld pursuant to this section and any
             364      accrued interest shall be released pursuant to a billing statement from the contractor within 45
             365      days from the later of:
             366          (a) the date the owner or public agency receives the billing statement from the
             367      contractor;
             368          (b) the date that a certificate of occupancy or final acceptance notice is issued to:


             369          (i) the original contractor who obtained the building permit from the building inspector
             370      or public agency;
             371          (ii) the owner or architect; or
             372          (iii) the public agency;
             373          (c) the date that a public agency or building inspector having authority to issue its own
             374      certificate of occupancy does not issue the certificate but permits partial or complete occupancy
             375      of a newly constructed or remodeled building; or
             376          (d) the date the contractor accepts the final pay quantities.
             377          (6) If only partial occupancy of a building is permitted, any retention proceeds withheld
             378      and retained pursuant to this section and any accrued interest shall be partially released within
             379      45 days under the same conditions as provided in Subsection (5) in direct proportion to the
             380      value of the part of the building occupied.
             381          (7) The billing statement from the contractor as provided in Subsection (5)(a) shall
             382      include documentation of lien releases or waivers.
             383          (8) (a) Notwithstanding Subsection (3):
             384          (i) if a contractor or subcontractor is in default or breach of the terms and conditions of
             385      the construction contract documents, plans, or specifications governing construction of the
             386      project, the owner or public agency may withhold from payment for as long as reasonably
             387      necessary an amount necessary to cure the breach or default of the contractor or subcontractor;
             388      or
             389          (ii) if a project or a portion of the project has been substantially completed, the owner
             390      or public agency may retain until completion up to twice the fair market value of the work of
             391      the original contractor or of any subcontractor that has not been completed:
             392          (A) in accordance with the construction contract documents, plans, and specifications;
             393      or
             394          (B) in the absence of plans and specifications, to generally accepted craft standards.
             395          (b) An owner or public agency that refuses payment under Subsection (8)(a) shall
             396      describe in writing within 45 days of withholding such amounts what portion of the work was
             397      not completed according to the standards specified in Subsection (8)(a).
             398          (9) (a) Except as provided in Subsection (9)(b), an original contractor or subcontractor
             399      who receives retention proceeds shall pay each of its subcontractors from whom retention has


             400      been withheld each subcontractor's share of the retention received within ten days from the day
             401      that all or any portion of the retention proceeds is received:
             402          (i) by the original contractor from the owner or public agency; or
             403          (ii) by the subcontractor from:
             404          (A) the original contractor; or
             405          (B) a subcontractor.
             406          (b) Notwithstanding Subsection (9)(a), if a retention payment received by the original
             407      contractor is specifically designated for a particular subcontractor, payment of the retention
             408      shall be made to the designated subcontractor.
             409          (10) (a) In any action for the collection of the retained proceeds withheld and retained
             410      in violation of this section, the successful party is entitled to:
             411          (i) attorney's fees; and
             412          (ii) other allowable costs.
             413          (b) (i) Any owner, public agency, original contractor, or subcontractor who knowingly
             414      and wrongfully withholds a retention shall be subject to a charge of 2% per month on the
             415      improperly withheld amount, in addition to any interest otherwise due.
             416          (ii) The charge described in Subsection (10)(b)(i) shall be paid to the contractor or
             417      subcontractor from whom the retention proceeds have been wrongfully withheld.
             418          (11) A party to a construction contract may not require any other party to waive any
             419      provision of this section.
             420          Section 5. Section 17-27-105.5 is amended to read:
             421           17-27-105.5. Manufactured homes.
             422          (1) For purposes of this section, a manufactured home is the same as defined in Section
             423      [ 58-56-3 ] 61-2f-103 , except that the manufactured home must be attached to a permanent
             424      foundation in accordance with plans providing for vertical loads, uplift, and lateral forces and
             425      frost protection in compliance with the applicable building code. All appendages, including
             426      carports, garages, storage buildings, additions, or alterations must be built in compliance with
             427      the applicable building code.
             428          (2) A manufactured home may not be excluded from any zone or area in which a
             429      single-family residence would be permitted, provided the manufactured home complies with
             430      all local zoning, building code, and subdivision requirements, including any restrictive


             431      covenants, applicable to single-family residence within that zone or area.
             432          (3) A county may not:
             433          (a) adopt or enforce an ordinance or regulation that treats a proposed development that
             434      includes manufactured homes differently than one that does not include manufactured homes;
             435      or
             436          (b) reject a development plan based on the fact that the development is expected to
             437      contain manufactured homes.
             438          Section 6. Section 19-5-121 is amended to read:
             439           19-5-121. Underground wastewater disposal systems -- Certification required to
             440      design, inspect, maintain, or conduct percolation or soil tests -- Exemptions -- Rules --
             441      Fees.
             442          (1) As used in this section, "maintain" does not include the pumping of an underground
             443      wastewater disposal system.
             444          (2) (a) Except as provided in Subsections (2)(b) and (2)(c), beginning January 1, 2002,
             445      a person may not design, inspect, maintain, or conduct percolation or soil tests for an
             446      underground wastewater disposal system, without first obtaining certification from the board.
             447          (b) An individual is not required to obtain certification from the board to maintain an
             448      underground wastewater disposal system that serves a noncommercial, private residence owned
             449      by the individual or a member of the individual's family and in which the individual or a
             450      member of the individual's family resides or an employee of the individual resides without
             451      payment of rent.
             452          (c) The board shall make rules allowing an uncertified individual to conduct
             453      percolation or soil tests for an underground wastewater disposal system that serves a
             454      noncommercial, private residence owned by the individual and in which the individual resides
             455      or intends to reside, or which is intended for use by an employee of the individual without
             456      payment of rent, if the individual:
             457          (i) has the capability of properly conducting the tests; and
             458          (ii) is supervised by a certified individual when conducting the tests.
             459          (3) (a) The board shall adopt and enforce rules for the certification and recertification
             460      of individuals who design, inspect, maintain, or conduct percolation or soil tests for
             461      underground wastewater disposal systems.


             462          (b) (i) The rules shall specify requirements for education and training and the type and
             463      duration of experience necessary to obtain certification.
             464          (ii) The rules shall recognize the following in meeting the requirements for
             465      certification:
             466          (A) the experience of a contractor licensed under Title [58] 61, Chapter [55] 2e, Utah
             467      Construction Trades Licensing Act, who has five or more years of experience installing
             468      underground wastewater disposal systems;
             469          (B) the experience of an environmental health scientist licensed under Title 58, Chapter
             470      20a, Environmental Health Scientist Act; or
             471          (C) the educational background of a professional engineer licensed under Title 58,
             472      Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.
             473          (iii) If eligibility for certification is based on experience, the applicant for certification
             474      must show proof of experience.
             475          (4) The department may establish fees in accordance with Section 63-38-3.2 for the
             476      testing and certification of individuals who design, inspect, maintain, or conduct percolation or
             477      soil tests for underground wastewater disposal systems.
             478          Section 7. Section 26-15-3 is amended to read:
             479           26-15-3. Department to advise Uniform Building Code Commission regarding the
             480      code and specific edition of a plumbing code -- Enforcement.
             481          (1) The department shall advise the Division of [Occupational and Professional
             482      Licensing] Real Estate and the Uniform Building Code Commission with respect to the code
             483      and specific edition of a plumbing code adopted by a nationally recognized code authority to be
             484      adopted by the Division of [Occupational and Professional Licensing] Real Estate, and
             485      amendments to that code as provided for under Section [ 58-56-5 ] 61-2f-104 .
             486          (2) The department may enforce the plumbing code adopted by the Division of
             487      [Occupational and Professional Licensing] Real Estate under Section [ 58-56-4 ] 61-2f-201 .
             488      [The provisions of]
             489          (3) Section [ 58-56-9 do] 61-2f-302 does not apply to health inspectors acting under this
             490      section.
             491          Section 8. Section 26A-1-113 is amended to read:
             492           26A-1-113. Right of entry to regulated premises by representatives for inspection.


             493          (1) Upon presenting proper identification, authorized representatives of local health
             494      departments may enter upon the premises of properties regulated by local health departments to
             495      perform routine inspections to [insure] ensure compliance with rules, standards, regulations,
             496      and ordinances as adopted by:
             497          (a) the [Departments] Department of Health [and];
             498          (b) the Department of Environmental Quality[,];
             499          (c) local boards of health[,];
             500          (d) county or municipal governing bodies[,]; or
             501          (e) the Division of [Occupational and Professional Licensing] Real Estate under
             502      Section [ 58-56-4 ] 61-2f-201 .
             503          (2) Section [ 58-56-9 ] 61-2f-302 does not apply to health inspectors acting under this
             504      section.
             505          (3) This section does not authorize local health departments to inspect private
             506      dwellings.
             507          Section 9. Section 26A-1-114 is amended to read:
             508           26A-1-114. Powers and duties of departments.
             509          (1) A local health department may:
             510          (a) subject to [the provisions in] Section 26A-1-108 , enforce state laws, local
             511      ordinances, department rules, and local health department standards and regulations relating to
             512      public health and sanitation, including the plumbing code adopted by the Division of
             513      [Occupational and Professional Licensing] Real Estate under Section [ 58-56-4 ] 61-2c-201 and
             514      under Title 26, Chapter 15a, Food Safety Manager Certification Act, in all incorporated and
             515      unincorporated areas served by the local health department;
             516          (b) establish, maintain, and enforce isolation and quarantine, and exercise physical
             517      control over property and over individuals as the local health department finds necessary for
             518      the protection of the public health;
             519          (c) establish and maintain medical, environmental, occupational, and other laboratory
             520      services considered necessary or proper for the protection of the public health;
             521          (d) establish and operate reasonable health programs or measures not in conflict with
             522      state law that:
             523          (i) are necessary or desirable for the promotion or protection of the public health and


             524      the control of disease; or
             525          (ii) may be necessary to ameliorate the major risk factors associated with the major
             526      causes of injury, sickness, death, and disability in the state;
             527          (e) close theaters, schools, and other public places and prohibit gatherings of people
             528      when necessary to protect the public health;
             529          (f) abate nuisances or eliminate sources of filth and infectious and communicable
             530      diseases affecting the public health and bill the owner or other person in charge of the premises
             531      upon which this nuisance occurs for the cost of abatement;
             532          (g) make necessary sanitary and health investigations and inspections on its own
             533      initiative or in cooperation with the Department of Health or Environmental Quality, or both,
             534      as to any matters affecting the public health;
             535          (h) pursuant to county ordinance or interlocal agreement:
             536          (i) establish and collect appropriate fees for the performance of services and operation
             537      of authorized or required programs and duties;
             538          (ii) accept, use, and administer all federal, state, or private donations or grants of funds,
             539      property, services, or materials for public health purposes; and
             540          (iii) make agreements not in conflict with state law that are conditional to receiving a
             541      donation or grant;
             542          (i) prepare, publish, and disseminate information necessary to inform and advise the
             543      public concerning:
             544          (i) the health and wellness of the population, specific hazards, and risk factors that may
             545      adversely affect the health and wellness of the population; and
             546          (ii) specific activities individuals and institutions can engage in to promote and protect
             547      the health and wellness of the population;
             548          (j) investigate the causes of morbidity and mortality;
             549          (k) issue notices and orders necessary to carry out this part;
             550          (l) conduct studies to identify injury problems, establish injury control systems,
             551      develop standards for the correction and prevention of future occurrences, and provide public
             552      information and instruction to special high risk groups;
             553          (m) cooperate with boards created under Section 19-1-106 to enforce laws and rules
             554      within the jurisdiction of the boards;


             555          (n) cooperate with the state health department, the Department of Corrections, the
             556      Administrative Office of the Courts, the Division of Juvenile Justice Services, and the Crime
             557      Victims Reparations Board to conduct testing for HIV infection of convicted sexual offenders
             558      and any victims of a sexual offense;
             559          (o) investigate suspected bioterrorism and disease pursuant to Section 26-23b-108 ; and
             560          (p) provide public health assistance in response to a national, state, or local emergency,
             561      a public health emergency as defined in Section 26-23b-102 , or a declaration by the President
             562      of the United States or other federal official requesting public health-related activities.
             563          (2) The local health department shall:
             564          (a) establish programs or measures to promote and protect the health and general
             565      wellness of the people within the boundaries of the local health department;
             566          (b) investigate infectious and other diseases of public health importance and implement
             567      measures to control the causes of epidemic and communicable diseases and other conditions
             568      significantly affecting the public health which may include involuntary testing of convicted
             569      sexual offenders for the HIV infection pursuant to Section 76-5-502 and voluntary testing of
             570      victims of sexual offenses for HIV infection pursuant to Section 76-5-503 ;
             571          (c) cooperate with the department in matters pertaining to the public health and in the
             572      administration of state health laws; and
             573          (d) coordinate implementation of environmental programs to maximize efficient use of
             574      resources by developing with the Department of Environmental Quality a Comprehensive
             575      Environmental Service Delivery Plan that:
             576          (i) recognizes that the Department of Environmental Quality and local health
             577      departments are the foundation for providing environmental health programs in the state;
             578          (ii) delineates the responsibilities of the department and each local health department
             579      for the efficient delivery of environmental programs using federal, state, and local authorities,
             580      responsibilities, and resources;
             581          (iii) provides for the delegation of authority and pass through of funding to local health
             582      departments for environmental programs, to the extent allowed by applicable law, identified in
             583      the plan, and requested by the local health department; and
             584          (iv) is reviewed and updated annually.
             585          (3) The local health department has the following duties regarding public and private


             586      schools within its boundaries:
             587          (a) enforce all ordinances, standards, and regulations pertaining to the public health of
             588      persons attending public and private schools;
             589          (b) exclude from school attendance any person, including teachers, who is suffering
             590      from any communicable or infectious disease, whether acute or chronic, if the person is likely
             591      to convey the disease to those in attendance; and
             592          (c) (i) make regular inspections of the health-related condition of all school buildings
             593      and premises;
             594          (ii) report the inspections on forms furnished by the department to those responsible for
             595      the condition and provide instructions for correction of any conditions that impair or endanger
             596      the health or life of those attending the schools; and
             597          (iii) provide a copy of the report to the department at the time the report is made.
             598          (4) If those responsible for the health-related condition of the school buildings and
             599      premises do not carry out any instructions for corrections provided in a report in Subsection
             600      (3)(c), the local health board shall cause the conditions to be corrected at the expense of the
             601      persons responsible.
             602          (5) The local health department may exercise incidental authority as necessary to carry
             603      out the provisions and purposes of this part.
             604          Section 10. Section 35A-4-303 is amended to read:
             605           35A-4-303. Determination of contribution rates.
             606          (1) (a) On or before January 1 of each year beginning January 1, 1985, an employer's
             607      basic contribution rate will be the same as the employer's benefit ratio, determined by dividing
             608      the total benefit costs charged back to an employer during the immediately preceding four
             609      fiscal years by the total taxable wages of the employer for the same time period, calculated to
             610      four decimal places, disregarding the remaining fraction, if any.
             611          (b) In calculating the basic contribution rate under Subsection (1)(a):
             612          (i) if four fiscal years of data are not available, the data of three fiscal years shall be
             613      divided by the total taxable wages for the same time period;
             614          (ii) if three fiscal years of data are not available, the data of two fiscal years shall be
             615      divided by the total taxable wages for the same time period; or
             616          (iii) if two fiscal years of data are not available, the data of one fiscal year shall be


             617      divided by the total taxable wages for the same time period.
             618          (2) (a) On or before January 1 of each year beginning with January 1, 1985, all social
             619      costs as defined in Subsection 35A-4-307 (1) applicable to the immediately preceding four
             620      fiscal years shall be divided by the total taxable wages of all employers subject to contributions
             621      for the same time period, calculated to four decimal places, disregarding the remaining fraction,
             622      if any.
             623          (b) In calculating the social contribution rate under Subsection (2)(a):
             624          (i) if four fiscal years of data are not available, the data of three fiscal years shall be
             625      divided by the total taxable wages for the same time period; or
             626          (ii) if three fiscal years of data are not available, the data of two fiscal years shall be
             627      divided by the total taxable wages for the same time period.
             628          (c) On or after January 1, 2000, the social contribution rate shall be:
             629          (i) set at 0.0010 for any rate year in which the reserve factor established in Subsection
             630      (3)(c) is equal to or less than 1.0000; or
             631          (ii) calculated by dividing all social costs as defined in Subsection 35A-4-307 (1)
             632      applicable to the preceding four fiscal years by the total taxable wages of all employers subject
             633      to contributions for the same time period, calculated to four decimal places, disregarding any
             634      remaining fraction, for any rate year in which the reserve factor established in Subsection (3)(c)
             635      is greater than 1.0000.
             636          (d) (i) The social contribution rate for the rate year beginning January 1, 2004, is set at
             637      .003.
             638          (ii) On or after January 1, 2005, the social contribution rate shall be calculated by
             639      dividing all social costs as defined in Subsection 35A-4-307 (1) applicable to the preceding four
             640      fiscal years by the total taxable wages of all employers subject to contributions for the same
             641      period, calculated to four decimal places, disregarding any remaining fraction.
             642          (iii) Notwithstanding Subsection (2)(d)(ii), the social contribution rate for only the rate
             643      year beginning January 1, 2005, may not exceed .004.
             644          (3) (a) On or before January 1 of each year beginning with January 1, 1985, the reserve
             645      factor shall be computed under Subsection (3)(b). For purposes of computing the reserve
             646      factor:
             647          (i) the five-year average benefit cost rate is calculated by:


             648          (A) determining the five highest benefit cost rates experienced in the 25 years ending
             649      December 31 one year prior to the computation date;
             650          (B) adding together the rates determined under Subsection (3)(a)(i)(A); and
             651          (C) dividing the amount under Subsection (3)(a)(i)(B) by five, calculated to four
             652      decimal places, disregarding the remaining fraction, if any;
             653          (ii) the minimum adequate reserve fund balance is calculated by:
             654          (A) multiplying the five-year average benefit cost rate by 1.5; and
             655          (B) multiplying the amount under Subsection (3)(a)(ii)(A) by total wages of the fiscal
             656      year ending prior to the computation date, rounded to the nearest dollar;
             657          (iii) the maximum adequate reserve fund balance is calculated by:
             658          (A) multiplying the five-year average benefit cost rate by 2.0; and
             659          (B) multiplying the amount under Subsection (3)(a)(iii)(A) by the total wages used
             660      under Subsection (3)(a)(ii)(B), rounded to the nearest dollar; and
             661          (iv) the computation date is the January 1 on which the reserve factor is calculated.
             662          (b) (i) The reserve factor is one if the actual reserve fund balance as of June 30
             663      preceding the computation date is:
             664          (A) equal to or greater than the minimum adequate reserve fund balance; and
             665          (B) equal to or less than the maximum adequate reserve fund balance.
             666          (ii) If the actual reserve fund balance as of June 30 preceding the computation date is
             667      less than the minimum adequate reserve fund balance, the reserve factor shall be the greater of:
             668          (A) 2.0000 minus an amount equal to the actual reserve fund balance divided by the
             669      minimum adequate reserve fund balance, calculated to four decimal places, disregarding the
             670      remaining fraction, if any; or
             671          (B) the reserve factor calculated in the prior year.
             672          (iii) The reserve factor is 2.0000 if:
             673          (A) the actual reserve fund balance as of June 30 preceding the computation date is:
             674          (I) insolvent; or
             675          (II) negative; or
             676          (B) there is an outstanding loan from the Federal Unemployment Account.
             677          (iv) If the actual reserve fund balance as of June 30 preceding the computation date is
             678      more than the maximum adequate reserve fund balance, the reserve factor shall be calculated


             679      by:
             680          (A) dividing the actual reserve fund balance by the maximum adequate reserve fund
             681      balance, calculated to four decimal places, disregarding the remaining fraction, if any; and
             682          (B) subtracting the amount under Subsection (3)(b)(iv)(A) from 2.0000.
             683          (c) Beginning January 1, 2000, the division shall by administrative decision set the
             684      reserve factor at a rate that shall sustain an adequate reserve. For the purpose of setting the
             685      reserve factor:
             686          (i) the adequate reserve is defined as between 17 and19 months of benefits at the
             687      average of the five highest benefit cost rates in the last 25 years;
             688          (ii) the reserve factor shall be 1.0000 if the actual reserve fund balance as of June 30
             689      preceding the computation date is determined to be an adequate reserve;
             690          (iii) the reserve factor will be set between 0.5000 and 1.0000 if the actual reserve fund
             691      balance as of June 30 preceding the computation date is greater than the adequate reserve;
             692          (iv) the reserve factor will be set between 1.0000 and 1.5000 if the actual reserve fund
             693      balance as of June 30 prior to the computation date is less than the adequate reserve;
             694          (v) if the actual reserve fund balance as of June 30 preceding the computation date is
             695      insolvent or negative or if there is an outstanding loan from the Federal Unemployment
             696      Account, the reserve factor will be set at 2.0000 until the actual reserve fund balance as of June
             697      30 preceding the computation date is determined to be an adequate reserve;
             698          (vi) the reserve factor will be set on or before January 1 of each year; and
             699          (vii) monies made available to the state under Section 903 of the Social Security Act,
             700      as amended, which are received on or after January 1, 2004, may not be considered in
             701      establishing the reserve factor under this section for the rate year 2005 or any subsequent rate
             702      year.
             703          (4) (a) Until January 1, 1995, an employer's overall contribution rate is the employer's
             704      basic contribution rate multiplied by the reserve factor, if there is a reserve factor, calculated to
             705      four decimal places, disregarding any further fraction, plus the social contribution rate, and
             706      rounded up to the next higher multiple of .10%, but not more than a maximum overall
             707      contribution rate of 8.0% and not less than 1% for new employers.
             708          (b) On or after January 1, 1995, an employer's overall contribution rate is the
             709      employer's basic contribution rate multiplied by the reserve factor, calculated to four decimal


             710      places, disregarding any further fraction, plus the social contribution rate, and rounded to three
             711      decimal places, disregarding any further fraction, if the fourth decimal place is .0004 or less, or
             712      rounding up to the next higher number, if the fourth decimal place is .0005 or more, but not
             713      more than a maximum overall contribution rate of 8.0% and not less than 1% for new
             714      employers.
             715          (c) On or after January 1, 2000, an employer's overall contribution rate is the
             716      employer's basic contribution rate multiplied by the reserve factor established according to
             717      Subsection (3)(c), calculated to four decimal places, disregarding the remaining fraction, plus
             718      the social contribution rate established according to Subsection (2)(c), and calculated to three
             719      decimal places, disregarding the remaining fraction, but not more than a maximum overall
             720      contribution rate of 8.0%, plus the applicable social contribution rate and not less than 1.1% for
             721      new employers.
             722          (d) On or after January 1, 2004, an employer's overall contribution rate is the
             723      employer's basic contribution rate multiplied by the reserve factor established according to
             724      Subsection (3)(c), calculated to four decimal places, disregarding the remaining fraction, plus
             725      the social contribution rate established according to Subsection (2)(d), and calculated to three
             726      decimal places, disregarding the remaining fraction, but not more than a maximum overall
             727      contribution rate of 9.0%, plus the applicable social contribution rate and not less than 1.1% for
             728      new employers.
             729          (e) The overall contribution rate does not include the addition of any penalty applicable
             730      to an employer as a result of delinquency in the payment of contributions as provided in
             731      Subsection (10).
             732          (5) Except as provided in Subsection (10), each new employer shall pay a contribution
             733      rate based on the average benefit cost rate experienced by employers of the major industry as
             734      defined by department rule to which the new employer belongs, the basic contribution rate to
             735      be determined as follows:
             736          (a) Except as provided in Subsection (5)(b), on or before January 1 of each year, the
             737      basic contribution rate to be used in computing the employer's overall contribution rate is the
             738      benefit cost rate which is the greater of:
             739          (i) the amount calculated by dividing the total benefit costs charged back to both active
             740      and inactive employers of the same major industry for the last two fiscal years by the total


             741      taxable wages paid by those employers that were paid during the same time period, computed
             742      to four decimal places, disregarding the remaining fraction, if any; or
             743          (ii) 1%.
             744          (b) If the major industrial classification assigned to a new employer is an industry for
             745      which a benefit cost rate does not exist because the industry has not operated in the state or has
             746      not been covered under this chapter, the employer's basic contribution rate shall be 5.4%. This
             747      basic contribution rate is used in computing the employer's overall contribution rate.
             748          (6) (a) A reopening employer's basic contribution rate is the average overall
             749      contribution rate for all employers in the state, but not less than 1%, until such time as the
             750      reopening employer becomes a qualified employer as defined in Section 35A-4-301 .
             751          (b) The average overall contribution rate for all employers in the state shall be defined
             752      by rule.
             753          (c) The reopening employer is an employer that is not substantially related to or
             754      affiliated with the predecessor employer and that acquires, for the purpose of reopening,
             755      substantially all the assets of a business or operating component of a business that has been
             756      closed or substantially closed for 90 days or more of its normal operating period immediately
             757      prior to the acquisition.
             758          (d) A business or operating component of a business has been substantially closed if:
             759          (i) its normal production has been stopped;
             760          (ii) a majority of its workers have been laid off; and
             761          (iii) the services of remaining employees are devoted to the protection and disposition
             762      of assets and inventory or administrative duties.
             763          (7) Notwithstanding any other provision of this chapter, and except as provided in
             764      Subsection (8), if an employing unit that moves into this state is declared to be a qualified
             765      employer because it has sufficient payroll and benefit cost experience under another state, a
             766      rate shall be computed on the same basis as a rate is computed for all other employers subject
             767      to this chapter if that unit furnishes adequate records on which to compute the rate.
             768          (8) An employer who begins to operate in this state after having operated in another
             769      state shall be assigned the maximum overall contribution rate until the employer acquires
             770      sufficient experience in this state to be considered a "qualified employer" if the employer is:
             771          (a) regularly engaged as a contractor in the construction, improvement, or repair of


             772      buildings, roads, or other structures on lands;
             773          (b) generally regarded as being a construction contractor or a subcontractor specialized
             774      in some aspect of construction; or
             775          (c) required to have a contractor's license or similar qualification under Title [58] 61,
             776      Chapter [55] 2e, Utah Construction Trades Licensing Act, or the equivalent in laws of another
             777      state.
             778          (9) (a) If an employer, other than a reopening employer, acquires the business or all or
             779      substantially all the assets of another employer and the other employer had discontinued
             780      operations upon the acquisition:
             781          (i) for purposes of determining and establishing the acquiring party's qualifications for
             782      an experience rating classification, the payrolls of both employers during the qualifying period
             783      shall be jointly considered in determining the period of liability with respect to:
             784          (A) the filing of contribution reports;
             785          (B) the payment of contributions; and
             786          (C) after January 1, 1985, the benefit costs of both employers; and
             787          (ii) the transferring employer shall be divested of the transferring employer's payroll
             788      experience.
             789          (b) Any employing unit or prospective employing unit that acquires the payroll
             790      experience of an employer shall, for all purposes of this chapter, be an employer as of the date
             791      of acquisition.
             792          (c) Notwithstanding Section 35A-4-310 , when a transferring employer, as provided in
             793      Subsection (9)(a), is divested of the employer's payroll experience by transferring all of the
             794      employer's business to another and by ceasing operations as of the date of the transfer, the
             795      transferring employer shall cease to be an employer, as defined by this chapter, as of the date of
             796      transfer.
             797          (10) (a) A rate of less than 8% shall be effective January 1 of any contribution year on
             798      or after January 1, 1985, but before January 1, 1988, and a rate of less than the maximum
             799      overall contribution rate on or after January 1, 1988, only with respect to new employers and to
             800      those qualified employers who, except for amounts due under division determinations that have
             801      not become final, paid all contributions prescribed by the division with respect to the four
             802      consecutive calendar quarters in the fiscal year immediately preceding the computation date on


             803      or after January 1, 1985.
             804          (b) Notwithstanding Subsections (1), (5), (6), (7), and (9), on or after January 1, 1988,
             805      any employer who fails to pay all contributions prescribed by the division with respect to the
             806      four consecutive calendar quarters in the fiscal year immediately preceding the computation
             807      date, except for amounts due under determinations that have not become final, shall pay a
             808      contribution rate equal to the overall contribution rate determined under the experience rating
             809      provisions of this chapter, plus a surcharge of 1% of wages.
             810          (c) Any employer who pays all required contributions shall, for the current contribution
             811      year, be assigned a rate based upon the employer's own experience as provided under the
             812      experience rating provisions of this chapter effective the first day of the calendar quarter in
             813      which the payment was made.
             814          (d) Delinquency in filing contribution reports shall not be the basis for denial of a rate
             815      less than the maximum contribution rate.
             816          Section 11. Section 38-1-7 (Effective 05/01/05) is amended to read:
             817           38-1-7 (Effective 05/01/05). Notice of claim -- Contents -- Recording -- Service on
             818      owner of property.
             819          (1) (a) Except as modified in Section 38-1-27 , a person claiming benefits under this
             820      chapter shall file for record with the county recorder of the county in which the property, or
             821      some part of the property, is situated, a written notice to hold and claim a lien within 90 days
             822      from the date of final completion of the original contract under which the claimant claims a
             823      lien under this chapter. For purposes of this Subsection (1), final completion of the original
             824      contract means:
             825          (i) if as a result of work performed under the original contract a permanent certificate
             826      of occupancy is required for such work, the date of issuance of a permanent certificate of
             827      occupancy by the local government entity having jurisdiction over the construction project;
             828          (ii) if no certificate of occupancy is required by the local government entity having
             829      jurisdiction over the construction project, but as a result of the work performed under the
             830      original contract an inspection is required for such work, the date of the final inspection for
             831      such work by the local government entity having jurisdiction over the construction project; or
             832          (iii) if with regard to work performed under the original contract no certificate of
             833      occupancy and no final inspection are required by the local government entity having


             834      jurisdiction over the construction project, the date on which there remains no substantial work
             835      to be completed to finish such work on the original contract.
             836          (b) Notwithstanding Section 38-1-2 , where a subcontractor performs substantial work
             837      after the applicable dates established by Subsections (1)(a)(i) and (ii), that subcontractor's
             838      subcontract shall be considered an original contract for the sole purpose of determining:
             839          (i) the subcontractor's time frame to file a notice of intent to hold and claim a lien
             840      under Subsection (1); and
             841          (ii) the original contractor's time frame to file a notice of intent to hold and claim a lien
             842      under Subsection (1) for that subcontractor's work.
             843          (c) For purposes of this section, the term "substantial work" does not include:
             844          (i) repair work;
             845          (ii) warranty work; or
             846          (iii) work for which the project owner is not holding payment to ensure completion of
             847      that work.
             848          (2) (a) The notice required by Subsection (1) shall contain a statement setting forth:
             849          (i) the name of the reputed owner if known or, if not known, the name of the record
             850      owner;
             851          (ii) the name of the person:
             852          (A) by whom the lien claimant was employed; or
             853          (B) to whom the lien claimant furnished the equipment or material;
             854          (iii) the time when:
             855          (A) the first and last labor or service was performed; or
             856          (B) the first and last equipment or material was furnished;
             857          (iv) a description of the property, sufficient for identification;
             858          (v) the name, current address, and current phone number of the lien claimant;
             859          (vi) the amount of the lien claim;
             860          (vii) the signature of the lien claimant or the lien claimant's authorized agent;
             861          (viii) an acknowledgment or certificate as required under Title 57, Chapter 3,
             862      Recording of Documents; and
             863          (ix) if the lien is on an owner-occupied residence, as defined in Section 38-11-102 , a
             864      statement describing what steps an owner, as defined in Section 38-11-102 , may take to require


             865      a lien claimant to remove the lien in accordance with Section 38-11-107 .
             866          (b) Substantial compliance with the requirements of this Subsection (2) is sufficient to
             867      hold and claim a lien.
             868          (3) (a) Within 30 days after filing the notice of lien, the lien claimant shall deliver or
             869      mail by certified mail a copy of the notice of lien to:
             870          (i) the reputed owner of the real property; or
             871          (ii) the record owner of the real property.
             872          (b) If the record owner's current address is not readily available to the lien claimant, the
             873      copy of the claim may be mailed to the last-known address of the record owner, using the
             874      names and addresses appearing on the last completed real property assessment rolls of the
             875      county where the affected property is located.
             876          (c) Failure to deliver or mail the notice of lien to the reputed owner or record owner
             877      precludes the lien claimant from an award of costs and attorneys' fees against the reputed
             878      owner or record owner in an action to enforce the lien.
             879          (4) The Division of [Occupational and Professional Licensing] Real Estate shall make
             880      rules governing the form of the statement required under Subsection (2)(a)(ix).
             881          Section 12. Section 38-1-11 is amended to read:
             882           38-1-11. Enforcement -- Time for -- Lis pendens -- Action for debt not affected --
             883      Instructions and form affidavit and motion.
             884          (1) A lien claimant shall file an action to enforce the lien filed under this chapter within
             885      180 days from the day on which the lien claimant filed a notice of claim under Section 38-1-7 .
             886          (2) (a) Within the time period provided for filing in Subsection (1) the lien claimant
             887      shall file for record with the county recorder of each county in which the lien is recorded a
             888      notice of the pendency of the action, in the manner provided in actions affecting the title or
             889      right to possession of real property, or the lien shall be void, except as to persons who have
             890      been made parties to the action and persons having actual knowledge of the commencement of
             891      the action.
             892          (b) The burden of proof shall be upon the lien claimant and those claiming under the
             893      lien claimant to show actual knowledge.
             894          (3) This section may not be interpreted to impair or affect the right of any person to
             895      whom a debt may be due for any work done or materials furnished to maintain a personal


             896      action to recover the same.
             897          (4) (a) If a lien claimant files an action to enforce a lien filed under this chapter
             898      involving a residence, as defined in Section 38-11-102 , the lien claimant shall include with the
             899      service of the complaint on the owner of the residence:
             900          (i) instructions to the owner of the residence relating to the owner's rights under Title
             901      38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act; and
             902          (ii) a form affidavit to enable the owner of the residence to specify the grounds upon
             903      which the owner may exercise available rights under Title 38, Chapter 11, Residence Lien
             904      Restriction and Lien Recovery Fund Act.
             905          (b) The instructions and form affidavit required by Subsection (4)(a) shall meet the
             906      requirements established by rule by the Division of [Occupational and Professional Licensing]
             907      Real Estate in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             908          (c) If a lien claimant fails to provide to the owner of the residence the instructions and
             909      form affidavit required by Subsection (4)(a), the lien claimant shall be barred from maintaining
             910      or enforcing the lien upon the residence.
             911          (d) Judicial determination of the rights and liabilities of the owner of the residence
             912      under [Title 38, Chapters 1 and] this chapter, Chapter 11, and Title 14, Chapter 2, shall be
             913      stayed until after the owner has been given a reasonable period of time to establish compliance
             914      with Subsections 38-11-204 (4)(a) and (4)(b) through an informal proceeding, as set forth in
             915      Title 63, Chapter 46b, Administrative Procedures Act, commenced within 30 days of the owner
             916      being served summons in the foreclosure action, at the Division of [Occupational and
             917      Professional Licensing] Real Estate and obtain a certificate of compliance or denial of
             918      certificate of compliance, as defined in Section 38-11-102 .
             919          (5) The written notice requirement applies to liens filed on or after July 1, 2004.
             920          Section 13. Section 38-1-27 (Effective 05/01/05) is amended to read:
             921           38-1-27 (Effective 05/01/05). Construction notice registry -- Form and contents of
             922      notice of commencement, preliminary notice, and notice of completion.
             923          (1) As used in this section and Sections 38-1-30 through 38-1-37 :
             924          (a) "Database" means the Construction Notice Registry Database created in this
             925      section.
             926          (b) (i) "Designated agent" means the third party the Division of [Occupational and


             927      Professional Licensing] Real Estate contracts with to create and maintain the Construction
             928      Notice Registry Database.
             929          (ii) The designated agent is not an agency, instrumentality, or a political subdivision of
             930      the state.
             931          (c) "Division" means the Division of [Occupational and Professional Licensing] Real
             932      Estate.
             933          (d) "Program" means the Construction Notice Registry Database Program created in
             934      this section.
             935          (2) Subject to receiving adequate funding through a legislative appropriation and
             936      contracting with an approved third party vendor who meets the requirements of Sections
             937      38-1-30 through 38-1-37 , there is created the Construction Notice Registry Database Program
             938      which shall:
             939          (a) assist in protecting public health, safety, and welfare and promote a fair working
             940      environment;
             941          (b) be overseen by the division with the assistance of the designated agent;
             942          (c) provide a central repository for notices of commencement, preliminary notices, and
             943      notices of completion filed in connection with all privately owned construction projects as well
             944      as all state and local government owned construction projects throughout Utah;
             945          (d) be accessible for filing and review of notices of commencement, preliminary
             946      notices, and notices of completion [via] by way of the program Internet website;
             947          (e) accommodate electronic filing of such notices as well as provide for alternate filing
             948      by U.S. mail, telefax, telephone, or any other alternate method as provided by rule made by the
             949      division in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act;
             950          (f) provide electronic notification for up to three e-mail addresses for each interested
             951      person or company who requests notice from the construction notice registry as well as provide
             952      alternate means of notification for those persons who make alternate filings, including U.S.
             953      mail, telefax, or any other method as prescribed by rule made by the division in accordance
             954      with Title 63, Chapter 46a, Utah Administrative Rulemaking Act; and
             955          (g) provide hard-copy printing of electronic receipts for individual filings evidencing
             956      the date and time of individual filings as well as the content of individual filings.
             957          (3) Persons interested in a construction project may request notice of filings related to


             958      the project. The database shall be indexed by owner name, original contractor name, project
             959      name, project address, parcel number, project number, and any other identifier that the division
             960      considers reasonably appropriate and established by rule, made in accordance with Title 63,
             961      Chapter 46a, Utah Administrative Rulemaking Act.
             962          (4) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             963      the division shall establish by rule the filing fees for notices of commencement, preliminary
             964      notices, notices of completion, and requests for notice, which fees may not exceed the amount
             965      reasonably necessary to create and maintain the database.
             966          (b) The fees established by the division may vary by method of filing if one form of
             967      filing is more costly than other forms of filing.
             968          Section 14. Section 38-11-102 is amended to read:
             969           38-11-102. Definitions.
             970          (1) "Board" means the Residence Lien Recovery Fund Advisory Board established
             971      under Section 38-11-104 .
             972          (2) "Certificate of compliance" means an order issued by the director to the owner
             973      finding that the owner is in compliance with the requirements of Subsections 38-11-204 (4)(a)
             974      and (4)(b) and is entitled to protection under Section 38-11-107 .
             975          (3) "Construction on an owner-occupied residence" means designing, engineering,
             976      constructing, altering, remodeling, improving, repairing, or maintaining a new or existing
             977      residence.
             978          (4) "Department" means the Department of Commerce.
             979          (5) "Director" means the director of the Division of [Occupational and Professional
             980      Licensing] Real Estate.
             981          (6) "Division" means the Division of [Occupational and Professional Licensing] Real
             982      Estate.
             983          (7) "Duplex" means a single building having two separate living units.
             984          (8) "Encumbered fund balance" means the aggregate amount of outstanding claims
             985      against the fund. The remainder of monies in the fund are unencumbered funds.
             986          (9) "Executive director" means the executive director of the Department of Commerce.
             987          (10) "Factory built housing" is as defined in Section [ 58-56-3 ] 61-2f-103 .
             988          (11) "Factory built housing retailer" means a person that sells factory built housing to


             989      consumers.
             990          (12) "Fund" means the Residence Lien Recovery Fund established under Section
             991      38-11-201 .
             992          (13) "Laborer" means a person who provides services at the site of the construction on
             993      an owner-occupied residence as an employee of an original contractor or other qualified
             994      beneficiary performing qualified services on the residence.
             995          (14) "Licensee" means any holder of a license issued under Title 58, Chapters 3a, 22,
             996      53, and [55] Title 61, Chapter 2e, Utah Construction Trades Licensing Act.
             997          (15) "Nonpaying party" means the original contractor, subcontractor, or real estate
             998      developer who has failed to pay the qualified beneficiary making a claim against the fund.
             999          (16) "Original contractor" means a person who contracts with the owner of real
             1000      property or the owner's agent to provide services, labor, or material for the construction of an
             1001      owner-occupied residence.
             1002          (17) "Owner" means a person who:
             1003          (a) contracts with a person who is licensed as a contractor or is exempt from licensure
             1004      under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, for the
             1005      construction on an owner-occupied residence upon real property owned by that person;
             1006          (b) contracts with a real estate developer to buy a residence upon completion of the
             1007      construction on the owner-occupied residence; or
             1008          (c) buys a residence from a real estate developer after completion of the construction
             1009      on the owner-occupied residence.
             1010          (18) "Owner-occupied residence" means a residence that is, or after completion of the
             1011      construction on the residence will be, occupied by the owner or the owner's tenant or lessee as a
             1012      primary or secondary residence within 180 days from the date of the completion of the
             1013      construction on the residence.
             1014          (19) "Qualified beneficiary" means a person who:
             1015          (a) provides qualified services;
             1016          (b) pays necessary fees or assessments required under this chapter; and
             1017          (c) registers with the division:
             1018          (i) as a licensed contractor under Subsection 38-11-301 (1) or (2), if that person seeks
             1019      recovery from the fund as a licensed contractor; or


             1020          (ii) as a person providing qualified services other than as a licensed contractor under
             1021      Subsection 38-11-301 (3) if the person seeks recovery from the fund in a capacity other than as
             1022      a licensed contractor.
             1023          (20) (a) "Qualified services" means the following performed in construction on an
             1024      owner-occupied residence:
             1025          (i) contractor services provided by a contractor licensed or exempt from licensure
             1026      under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act;
             1027          (ii) architectural services provided by an architect licensed under Title 58, Chapter 3a,
             1028      Architects Licensing Act;
             1029          (iii) engineering and land surveying services provided by a professional engineer or
             1030      land surveyor licensed or exempt from licensure under Title 58, Chapter 22, Professional
             1031      Engineers and Professional Land Surveyors Licensing Act;
             1032          (iv) landscape architectural services by a landscape architect licensed or exempt from
             1033      licensure under Title 58, Chapter 53, Landscape Architects Licensing Act;
             1034          (v) design and specification services of mechanical or other systems;
             1035          (vi) other services related to the design, drawing, surveying, specification, cost
             1036      estimation, or other like professional services;
             1037          (vii) providing materials, supplies, components, or similar products;
             1038          (viii) renting equipment or materials;
             1039          (ix) labor at the site of the construction on the owner-occupied residence; and
             1040          (x) site preparation, set up, and installation of factory built housing.
             1041          (b) "Qualified services" do not include the construction of factory built housing in the
             1042      factory.
             1043          (21) "Real estate developer" means a person having an ownership interest in real
             1044      property who contracts with a person who is licensed as a contractor or is exempt from
             1045      licensure under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, for the
             1046      construction of a residence that is offered for sale to the public.
             1047          (22) (a) "Residence" means an improvement to real property used or occupied, to be
             1048      used or occupied as, or in conjunction with:
             1049          (i) a primary or secondary detached single-family dwelling; or
             1050          (ii) a multifamily dwelling up to and including duplexes.


             1051          (b) "Residence" includes factory built housing.
             1052          (23) "Subsequent owner" means a person who purchases a residence from an owner
             1053      within 180 days from the date the construction on the residence is completed.
             1054          Section 15. Section 38-11-103 is amended to read:
             1055           38-11-103. Administration.
             1056          This chapter shall be administered by the Division of [Occupational and Professional
             1057      Licensing] Real Estate pursuant to [the provisions of] this chapter and consistent with [Title 58,
             1058      Chapter 1] Title 61, Chapter 2e, Utah Construction Trades Licensing Act.
             1059          Section 16. Section 38-11-204 is amended to read:
             1060           38-11-204. Claims against the fund -- Requirement to make a claim --
             1061      Qualifications to receive compensation -- Qualifications to receive a certificate of
             1062      compliance.
             1063          (1) To claim recovery from the fund a person shall:
             1064          (a) meet the requirements of either Subsection (4) or (7);
             1065          (b) pay an application fee determined by the division under Section 63-38-3.2 ; and
             1066          (c) file with the division a completed application on a form provided by the division
             1067      accompanied by supporting documents establishing:
             1068          (i) that the person meets the requirements of either Subsection (4) or (7);
             1069          (ii) that the person was a qualified beneficiary or laborer during the construction on the
             1070      owner-occupied residence; and
             1071          (iii) the basis for the claim.
             1072          (2) To recover from the fund, the application required by Subsection (1) shall be filed
             1073      no later than one year:
             1074          (a) from the date the judgment required by Subsection (4)(d) is entered;
             1075          (b) from the date the nonpaying party filed bankruptcy, if the claimant is precluded
             1076      from obtaining a judgment or from satisfying the requirements of Subsection (4)(d) because the
             1077      nonpaying party filed bankruptcy within one year after the entry of judgment; or
             1078          (c) from the date the laborer, trying to recover from the fund, completed the laborer's
             1079      qualified services.
             1080          (3) To obtain a certificate of compliance an owner or agent of the owner shall establish
             1081      with the division that the owner meets the requirements of Subsections (4)(a) and (4)(b).


             1082          (4) To recover from the fund, regardless of whether the residence is occupied by the
             1083      owner, a subsequent owner, or the owner or subsequent owner's tenant or lessee, a qualified
             1084      beneficiary shall establish that:
             1085          (a) (i) the owner of the owner-occupied residence or the owner's agent entered into a
             1086      written contract with an original contractor licensed or exempt from licensure under Title [58]
             1087      61, Chapter [55] 2e, Utah Construction Trades Licensing Act:
             1088          (A) for the performance of qualified services;
             1089          (B) to obtain the performance of qualified services by others; or
             1090          (C) for the supervision of the performance by others of qualified services in
             1091      construction on that residence;
             1092          (ii) the owner of the owner-occupied residence or the owner's agent entered into a
             1093      written contract with a real estate developer for the purchase of an owner-occupied residence;
             1094      or
             1095          (iii) the owner of the owner-occupied residence or the owner's agent entered into a
             1096      written contract with a factory built housing retailer for the purchase of an owner-occupied
             1097      residence;
             1098          (b) the owner has paid in full the original contractor, licensed or exempt from licensure
             1099      under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, real estate
             1100      developer, or factory built housing retailer under Subsection (4)(a) with whom the owner has a
             1101      written contract in accordance with the written contract and any amendments to the contract;
             1102          (c) (i) the original contractor, licensed or exempt from licensure under Title [58] 61,
             1103      Chapter [55] 2e, Utah Construction Trades Licensing Act, the real estate developer, or the
             1104      factory built housing retailer subsequently failed to pay a qualified beneficiary who is entitled
             1105      to payment under an agreement with that original contractor or real estate developer licensed or
             1106      exempt from licensure under Title [58] 61, Chapter [55] 2e, Utah Construction Trades
             1107      Licensing Act, for services performed or materials supplied by the qualified beneficiary;
             1108          (ii) a subcontractor who contracts with the original contractor, licensed or exempt from
             1109      licensure under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, the
             1110      real estate developer, or the factory built housing retailer failed to pay a qualified beneficiary
             1111      who is entitled to payment under an agreement with that subcontractor or supplier; or
             1112          (iii) a subcontractor who contracts with a subcontractor or supplier failed to pay a


             1113      qualified beneficiary who is entitled to payment under an agreement with that subcontractor or
             1114      supplier;
             1115          (d) (i) the qualified beneficiary filed:
             1116          (A) an action against the nonpaying party to recover monies owed to the qualified
             1117      beneficiary within 180 days from the date the qualified beneficiary last provided qualified
             1118      services, unless precluded from doing so by the nonpaying party's bankruptcy filing within the
             1119      180 days after completion of services; and
             1120          (B) a notice of commencement of action with the division within 30 days from the date
             1121      the qualified beneficiary filed the civil action if a civil action was filed as required by
             1122      Subsection (4)(d)(i)(A);
             1123          (ii) the qualified beneficiary has obtained a judgment against the nonpaying party who
             1124      failed to pay the qualified beneficiary under an agreement to provide qualified services for
             1125      construction of that owner-occupied residence;
             1126          (iii) (A) the qualified beneficiary has:
             1127          (I) obtained from a court of competent jurisdiction the issuance of an order requiring
             1128      the judgment debtor, or if a corporation any officer of the corporation, to appear before the
             1129      court at a specified time and place to answer concerning the debtor's or corporation's property;
             1130          (II) received return of service of the order from a person qualified to serve documents
             1131      under the Utah Rules of Civil Procedure, Rule 4(b); and
             1132          (III) made reasonable efforts to obtain asset information from the supplemental
             1133      proceedings; and
             1134          (B) if assets subject to execution are discovered as a result of the order required under
             1135      Subsection (4)(d)(iii)(A) or for any other reason, to obtain the issuance of a writ of execution
             1136      from a court of competent jurisdiction; or
             1137          (iv) the qualified beneficiary timely filed a proof of claim where permitted in the
             1138      bankruptcy action, if the nonpaying party has filed bankruptcy;
             1139          (e) the qualified beneficiary is not entitled to reimbursement from any other person;
             1140      and
             1141          (f) the qualified beneficiary provided qualified services to a contractor, licensed or
             1142      exempt from licensure under Title [58] 61, Chapter [55] 2e, Utah Construction Trades
             1143      Licensing Act.


             1144          (5) The requirements of Subsections (4)(d)(i), (ii), and (iii) need not be met if the
             1145      qualified beneficiary has been precluded from obtaining a judgment against the nonpaying
             1146      party or from satisfying the requirements of Subsections (4)(d)(i), (ii), and (iii) because the
             1147      nonpaying party filed bankruptcy.
             1148          (6) If a qualified beneficiary fails to file the notice with the division required under
             1149      Subsection (4)(d)(i)(B), the claim of the qualified beneficiary shall be paid:
             1150          (a) if otherwise qualified under this chapter;
             1151          (b) to the extent that the limit of Subsection 38-11-203 (4)(a) has not been reached by
             1152      payments from the fund to qualified beneficiaries who have complied with the notice
             1153      requirements of Subsection (4)(d)(i)(B); and
             1154          (c) in the order that the claims are filed by persons who fail to comply with Subsection
             1155      (4)(d)(i)(B), not to exceed the limit of Subsection 38-11-203 (4)(a).
             1156          (7) To recover from the fund a laborer shall:
             1157          (a) establish that the laborer has not been paid wages due for the work performed at the
             1158      site of a construction on an owner-occupied residence; and
             1159          (b) provide any supporting documents or information required by rule by the division.
             1160          (8) A fee determined by the division under Section 63-38-3.2 shall be deducted from
             1161      any recovery from the fund received by a laborer.
             1162          (9) The requirements of Subsections (4)(a) and (4)(b) may be satisfied if an owner or
             1163      agent of the owner establishes to the satisfaction of the director that the owner of the
             1164      owner-occupied residence or the owner's agent entered into a written contract with an original
             1165      contractor who:
             1166          (a) was a business entity that was not licensed under Title [58] 61, Chapter [55] 2e,
             1167      Utah Construction Trades Licensing Act, but was solely or partly owned by an individual who
             1168      was licensed under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act; or
             1169          (b) was a natural person who was not licensed under Title [58] 61, Chapter [55] 2e,
             1170      Utah Construction Trades Licensing Act, but who was the sole or partial owner and qualifier of
             1171      a business entity that was licensed under Title [58] 61, Chapter [55] 2e, Utah Construction
             1172      Trades Licensing Act.
             1173          (10) The director shall have equitable power to determine if the requirements of
             1174      Subsections (4)(a) and (4)(b) have been met, but any decision by the director under Title 38,


             1175      Chapter 11, shall not alter or have any effect on any other decision by the division under Title
             1176      [58] 61.
             1177          Section 17. Section 38-11-207 is amended to read:
             1178           38-11-207. Reimbursement to the fund.
             1179          (1) If the director disburses monies from the fund as a result of a person licensed under
             1180      Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, or a qualified
             1181      beneficiary failing to pay qualified beneficiaries:
             1182          (a) the division shall issue a notice of the disbursement from the fund and the
             1183      obligation to reimburse the fund to the licensee or qualified beneficiary; and
             1184          (b) the licensee or qualified beneficiary shall reimburse the fund within 20 days from
             1185      the issuance of the notice required by Subsection (1)(a).
             1186          (2) The notice required by Subsection (1)(a) shall meet the requirements established by
             1187      rule by the division in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             1188      Act.
             1189          (3) (a) A finding of fact in an administrative action that a payment of any amount has
             1190      been made from the fund in settlement of a claim arising from the act, representation,
             1191      transaction, or conduct of a person licensed under Title [58] 61, Chapter [55] 2e, Utah
             1192      Construction Trades Licensing Act, in violation of Section [ 58-55-603 ] 61-2e-603 shall result
             1193      in the immediate suspension of that person's license without further compliance with Title 63,
             1194      Chapter 46b, Administrative Procedures Act.
             1195          (b) The finding of fact for Subsection (3)(a) may be made in the same administrative
             1196      action as the related claim and may be included in the findings required by Section 38-11-203 .
             1197          (c) The suspension required by Subsection (3)(a) shall remain in effect until the person
             1198      applies for reinstatement and is issued a license in accordance with Sections 58-1-308 and
             1199      [ 58-55-303 ] 61-2e-303 .
             1200          Section 18. Section 38-11-301 is amended to read:
             1201           38-11-301. Registration as a qualified beneficiary -- Initial regular assessment --
             1202      Affidavit.
             1203          (1) A person licensed as of July 1, 1995, as a contractor under the provisions of Title
             1204      [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, in license classifications
             1205      that regularly engage in providing qualified services shall be automatically registered as a


             1206      qualified beneficiary upon payment of the initial assessment.
             1207          (2) A person applying for licensure as a contractor after July 1, 1995, in license
             1208      classifications that regularly engage in providing qualified services shall be automatically
             1209      registered as a qualified beneficiary upon issuance of a license and payment of the initial
             1210      assessment.
             1211          (3) (a) After July 1, 1995, any person providing qualified services as other than a
             1212      contractor as provided in Subsection (1) or any person exempt from licensure under the
             1213      provisions of Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, may
             1214      register as a qualified beneficiary by:
             1215          (i) submitting an application in a form prescribed by the division;
             1216          (ii) demonstrating registration with the Division of Corporations and Commercial Code
             1217      as required by state law;
             1218          (iii) paying a registration fee determined by the division under Section 63-38-3.2 ; and
             1219          (iv) paying the initial assessment established under Subsection (4), and any special
             1220      assessment determined by the division under Subsection 38-11-206 (1).
             1221          (b) A person who does not register under Subsection (1), (2), or (3)(a) shall be
             1222      prohibited from recovering under the fund as a qualified beneficiary for work performed as
             1223      qualified services while not registered with the fund.
             1224          (4) (a) An applicant shall pay an initial assessment determined by the division under
             1225      Section 63-38-3.2 .
             1226          (b) The initial assessment to qualified registrants under Subsection (1) shall be made
             1227      not later than July 15, 1995, and shall be paid no later than November 1, 1995.
             1228          (c) The initial assessment to qualified registrants under Subsections (2) and (3) shall be
             1229      paid at the time of application for license or registration, however, beginning on May 1, 1996,
             1230      only one initial assessment or special assessments thereafter shall be required for persons
             1231      having multiple licenses under this section.
             1232          (5) A person shall be considered to have been registered as a qualified beneficiary on
             1233      January 1, 1995, for purposes of meeting the requirements of Subsection 38-11-204 (1)(c)(ii) if
             1234      the person:
             1235          (a) (i) is licensed on or before July 1, 1995, as a contractor under [the provisions of]
             1236      Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, in license


             1237      classifications that regularly engage in providing qualified services; or
             1238          (ii) provides qualified services after July 1, 1995, as other than a contractor as provided
             1239      in Subsection (5)(a)(i) or is exempt from licensure under the provisions of Title [58] 61,
             1240      Chapter [55] 2e, Utah Construction Trades Licensing Act; and
             1241          (b) registers as a qualified beneficiary under Subsection (1) or (3) on or before
             1242      November 1, 1995.
             1243          Section 19. Section 38-11-302 is amended to read:
             1244           38-11-302. Effective date and term of registration -- Penalty for failure to pay
             1245      assessments -- Reinstatement.
             1246          (1) (a) A registration as a qualified beneficiary under this chapter is effective on the
             1247      date the division receives the initial assessment of the qualified beneficiary.
             1248          (b) A registrant shall be required to renew [his] the registrant's registration upon
             1249      imposition of a special assessment under Subsection 38-11-206 (1).
             1250          (2) A registration automatically expires if a registrant fails to renew [his] the
             1251      registrant's registration as required under Subsection (1).
             1252          (3) The division shall notify a qualified beneficiary in accordance with procedures
             1253      established by rule when renewal of registration is required in connection with a special
             1254      assessment.
             1255          (4) The license renewal notice to a contractor shall notify the licensee that failure to
             1256      renew [his] the licensee's license will result in automatic expiration of [his] the licensee's
             1257      registration as a qualified beneficiary and of the limitations set forth in Subsection (6) on
             1258      qualified beneficiaries whose registration has expired to make a claim upon the fund.
             1259          (5) Registration may be reinstated by:
             1260          (a) submitting an application for reinstatement in a form prescribed by the division;
             1261          (b) paying a reinstatement fee determined by the division under Section 63-38-3.2 ; and
             1262          (c) paying all unpaid assessments that were assessed during the period of the person's
             1263      registration and all assessments made upon qualified beneficiaries during the period the
             1264      applicant's registration was expired.
             1265          (6) (a) A qualified beneficiary whose registration expires loses all rights to make a
             1266      claim upon the fund or receive compensation from the fund resulting from providing qualified
             1267      service during the period of expiration.


             1268          (b) Except as provided by Section [ 58-55-401 ] 61-2e-401 , a qualified beneficiary
             1269      whose registration expires may make a claim upon the fund or receive compensation from the
             1270      fund for qualified services provided during the period the qualified beneficiary was part of the
             1271      fund.
             1272          Section 20. Section 57-23-4 is amended to read:
             1273           57-23-4. Exclusions.
             1274          This chapter does not apply to:
             1275          (1) an interest in real estate regulated under Title 57, Chapter 19, Timeshare and Camp
             1276      Resort Act;
             1277          (2) an offering for an interest in real estate which is regulated under:
             1278          (a) Title 61, Chapter 1, Utah Uniform Securities Act;
             1279          (b) the securities laws of any state; or
             1280          (c) federal securities laws; or
             1281          (3) a sale of manufactured housing licensed under Title [58] 61, Chapter [56] 2f, Utah
             1282      Uniform Building Standards Act, unless the sale is made in conjunction with an offering or sale
             1283      of a cooperative interest under this chapter.
             1284          Section 21. Section 58-1-202 is amended to read:
             1285           58-1-202. Boards -- Duties, functions, and responsibilities.
             1286          [(1)] The duties, functions, and responsibilities of each board include the following:
             1287          [(a)] (1) recommending to the director appropriate rules;
             1288          [(b)] (2) recommending to the director policy and budgetary matters;
             1289          [(c)] (3) approving and establishing a passing score for applicant examinations;
             1290          [(d)] (4) screening applicants and recommending licensing, renewal, reinstatement, and
             1291      relicensure actions to the director in writing;
             1292          [(e)] (5) assisting the director in establishing standards of supervision for students or
             1293      persons in training to become qualified to obtain a license in the occupation or profession it
             1294      represents; and
             1295          [(f)] (6) acting as presiding officer in conducting hearings associated with adjudicative
             1296      proceedings and in issuing recommended orders when so designated by the director.
             1297          [(2) Subsection (1) does not apply to boards created in Title 58, Chapter 55,
             1298      Construction Trades Licensing.]


             1299          Section 22. Section 58-1-203 is amended to read:
             1300           58-1-203. Duties, functions, and responsibilities of division in collaboration with
             1301      board.
             1302          [(1)] The following duties, functions, and responsibilities of the division shall be
             1303      performed by the division with the collaboration and assistance of the appropriate board:
             1304          [(a)] (1) defining which schools, colleges, universities, departments of universities, or
             1305      other institutions of learning are reputable and in good standing with the division;
             1306          [(b)] (2) prescribing license qualifications;
             1307          [(c)] (3) prescribing rules governing applications for licenses;
             1308          [(d)] (4) providing for a fair and impartial method of examination of applicants;
             1309          [(e)] (5) defining unprofessional conduct, by rule, to supplement the definitions under
             1310      this chapter or other licensing chapters;
             1311          [(f)] (6) establishing advisory peer committees to the board and prescribing their scope
             1312      of authority; and
             1313          [(g)] (7) establishing conditions for reinstatement and renewal of licenses.
             1314          [(2) Notwithstanding Subsection (1), the duties, functions, and responsibilities of the
             1315      division outlined in Subsection (1) shall, instead, be performed by the Construction Services
             1316      Commission for all purposes of Title 58, Chapter 55, Construction Trades Licensing.]
             1317          Section 23. Section 58-1-301.5 is amended to read:
             1318           58-1-301.5. Division access to Bureau of Criminal Identification records.
             1319          (1) The division shall have direct access to criminal background information
             1320      maintained by the Bureau of Criminal Identification under Title 53, Chapter 10, Part 2, Bureau
             1321      of Criminal Identification, for background screening of licensure applicants as required in:
             1322          (a) Section 58-31b-302 of Title 58, Chapter 31b, Nurse Practice Act;
             1323          (b) Section 58-47b-302 of Title 58, Chapter 47b, Massage Therapy Practice Act; and
             1324          [(c) Section 58-55-302 of Title 58, Chapter 55, Construction Trades Licensing, as it
             1325      applies to alarm companies and alarm company agents; and]
             1326          [(d)] (c) Section 58-63-302 of Title 58, Chapter 63, Security Personnel Licensing Act.
             1327          (2) The division access under Subsection (1) shall be in accordance with Section
             1328      53-10-108 .
             1329          Section 24. Section 58-3a-102 is amended to read:


             1330           58-3a-102. Definitions.
             1331          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             1332          (1) "Architect" means a person licensed under this chapter as an architect.
             1333          (2) "Board" means the Architects Licensing Board created in Section 58-3a-201 .
             1334          (3) "Building" means a structure which has human occupancy or habitation as its
             1335      principal purpose, and includes the structural, mechanical, and electrical systems, utility
             1336      services, and other facilities required for the building, and is otherwise governed by the codes
             1337      adopted under Title [58] 61, Chapter [56] 2f, Utah Uniform Building Standards Act.
             1338          (4) "Complete construction plans" means a final set of plans and specifications for a
             1339      building that normally includes:
             1340          (a) floor plans;
             1341          (b) elevations;
             1342          (c) site plans;
             1343          (d) foundation, structural, and framing detail;
             1344          (e) electrical, mechanical, and plumbing design;
             1345          (f) information required by the energy code;
             1346          (g) specifications and related calculations as appropriate; and
             1347          (h) all other documents required to obtain a building permit.
             1348          (5) "Fund" means the Architects Education and Enforcement Fund created in Section
             1349      58-3a-103 .
             1350          (6) (a) "Practice of architecture" means rendering or offering to render the following
             1351      services in connection with the design, construction, enlargement, or alteration of a building or
             1352      group of buildings, and the space within and surrounding such buildings:
             1353          (i) planning;
             1354          (ii) facility programming;
             1355          (iii) preliminary studies;
             1356          (iv) preparation of designs, drawings, and specifications;
             1357          (v) preparation of technical submissions and coordination of any element of technical
             1358      submissions prepared by others including, as appropriate and without limitation, professional
             1359      engineers, and landscape architects; and
             1360          (vi) administration of construction contracts.


             1361          (b) "Practice of architecture" does not include the practice of professional engineering
             1362      as defined in Section 58-22-102 , but a licensed architect may perform such professional
             1363      engineering work as is incidental to the practice of architecture.
             1364          (7) "Principal" means a licensed architect having responsible charge of an
             1365      organization's architectural practice.
             1366          (8) "Supervision of an employee, subordinate, associate, or drafter of an architect"
             1367      means that a licensed architect is responsible for and personally reviews, corrects when
             1368      necessary, and approves work performed by any employee, subordinate, associate, or drafter
             1369      under the direction of the architect, and may be further defined by rule by the division in
             1370      collaboration with the board.
             1371          (9) "Unlawful conduct" as defined in Section 58-1-501 is further defined in Section
             1372      58-3a-501 .
             1373          (10) "Unprofessional conduct" as defined in Section 58-1-501 may be further defined
             1374      by rule by the division in collaboration with the board.
             1375          Section 25. Section 58-3a-602 is amended to read:
             1376           58-3a-602. Plans and specifications to be sealed.
             1377          (1) Any final plan and specification of a building erected in this state shall bear the seal
             1378      of an architect licensed under this chapter, except as provided in Section 58-3a-304 , in Title 58,
             1379      Chapter 22, Professional Engineers and Land Surveyors Licensing Act, and by the codes
             1380      adopted under Title [58] 61, Chapter [56] 2f, Utah Uniform Building Standards Act.
             1381          (2) Any final plan and specification of a building prepared by or under the supervision
             1382      of the licensed architect shall bear the seal of the architect when submitted to a client, or when
             1383      submitted to a building official for the purpose of obtaining a building permit, even if the
             1384      practice is exempt from licensure under Section 58-3a-304 .
             1385          Section 26. Section 58-22-102 is amended to read:
             1386           58-22-102. Definitions.
             1387          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             1388          (1) "Board" means the Professional Engineers and Professional Land Surveyors
             1389      Licensing Board created in Section 58-22-201 .
             1390          (2) "Building" means a structure which has human occupancy or habitation as its
             1391      principal purpose, and includes the structural, mechanical, and electrical systems, utility


             1392      services, and other facilities required for the building, and is otherwise governed by the codes
             1393      adopted under Title [58] 61, Chapter [56] 2f, Utah Uniform Building Standards Act.
             1394          (3) "Complete construction plans" means a final set of plans, specifications, and reports
             1395      for a building or structure that normally includes:
             1396          (a) floor plans;
             1397          (b) elevations;
             1398          (c) site plans;
             1399          (d) foundation, structural, and framing detail;
             1400          (e) electrical, mechanical, and plumbing design;
             1401          (f) information required by the energy code;
             1402          (g) specifications and related calculations as appropriate; and
             1403          (h) all other documents required to obtain a building permit.
             1404          (4) "EAC/ABET" means the Engineering Accreditation Commission/Accreditation
             1405      Board for Engineering and Technology.
             1406          (5) "Fund" means the Professional Engineer, Professional Structural Engineer, and
             1407      Professional Land Surveyor Education and Enforcement Fund created in Section 58-22-103 .
             1408          (6) "NCEES" means the National Council of Examiners for Engineering and
             1409      Surveying.
             1410          (7) "Principal" means a licensed professional engineer, professional structural engineer,
             1411      or professional land surveyor having responsible charge of an organization's professional
             1412      engineering, professional structural engineering, or professional land surveying practice.
             1413          (8) "Professional engineer" means a person licensed under this chapter as a
             1414      professional engineer.
             1415          (9) "Professional engineering or the practice of engineering" means any service or
             1416      creative work, the adequate performance of which requires engineering education, training, and
             1417      experience in the application of special knowledge of the mathematical, physical, and
             1418      engineering sciences to such services or creative work as consultation, investigation,
             1419      evaluation, planning, design, and design coordination of engineering works and systems,
             1420      planning the use of land and water, facility programming, performing engineering surveys and
             1421      studies, and the review of construction for the purpose of monitoring compliance with
             1422      drawings and specifications; any of which embraces such services or work, either public or


             1423      private, in connection with any utilities, structures, buildings, machines, equipment, processes,
             1424      work systems, projects, and industrial or consumer products or equipment of a mechanical,
             1425      electrical, hydraulic, pneumatic, or thermal nature, and including such other professional
             1426      services as may be necessary to the planning, progress, and completion of any engineering
             1427      services, provided that the practice of professional engineering shall not include the practice of
             1428      architecture as defined in 58-3a-102, but a licensed professional engineer may perform such
             1429      architecture work as is incidental to the practice of engineering.
             1430          (10) "Professional engineering intern" means a person who has completed the
             1431      education requirements to become a professional engineer, has passed the fundamentals of
             1432      engineering examination, and is engaged in obtaining the four years of qualifying experience
             1433      for licensure under the direct supervision of a licensed professional engineer.
             1434          (11) "Professional land surveying or the practice of land surveying" means any service
             1435      or work, the adequate performance of which requires the application of special knowledge of
             1436      the principles of mathematics, the related physical and applied sciences, and the relevant
             1437      requirements of law for adequate evidence to the act of measuring and locating lines, angles,
             1438      elevations, natural and man-made features in the air, on the surface of the earth, within
             1439      underground workings, and on the beds of bodies of water for the purpose of determining areas
             1440      and volumes, for the monumenting or locating property boundaries or points controlling
             1441      boundaries, and for the platting and layout of lands and subdivisions thereof, including the
             1442      topography, alignment and grades of streets, and for the preparation and perpetuation of maps,
             1443      record plats, field notes records, and property descriptions that represent these surveys and such
             1444      other duties as sound surveying practices could direct.
             1445          (12) "Professional land surveyor" means an individual licensed under this chapter as a
             1446      professional land surveyor.
             1447          (13) "Professional structural engineer" means a person licensed under this chapter as a
             1448      professional structural engineer.
             1449          (14) "Professional structural engineering or the practice of structural engineering"
             1450      means the design and analysis of complex buildings and structures and includes the definition
             1451      of professional engineering or the practice of engineering provided in Subsection (9), and may
             1452      be further defined by rule by the division in collaboration with the board.
             1453          (15) "Structure" means that which is built or constructed, an edifice or building of any


             1454      kind, or any piece of work artificially built up or composed of parts joined together in some
             1455      definite manner, and as otherwise governed by the codes adopted under Title [58] 61, Chapter
             1456      [56] 2f, Utah Uniform Building Standards Act.
             1457          (16) " Supervision of an employee, subordinate, associate, or drafter of a licensee"
             1458      means that a licensed professional engineer, professional structural engineer, or professional
             1459      land surveyor is responsible for and personally reviews, corrects when necessary, and approves
             1460      work performed by any employee, subordinate, associate, or drafter under the direction of the
             1461      licensee, and may be further defined by rule by the division in collaboration with the board.
             1462          (17) "TAC/ABET" means the Technology Accreditation Commission/Accreditation
             1463      Board for Engineering and Technology.
             1464          (18) "Unlawful conduct" is defined in Sections 58-1-501 and 58-22-501 .
             1465          (19) "Unprofessional conduct" as defined in Section 58-1-501 may be further defined
             1466      by rule by the division in collaboration with the board.
             1467          Section 27. Section 58-22-602 is amended to read:
             1468           58-22-602. Plans, specifications, reports, maps, sketches, surveys, drawings,
             1469      documents, and plats to be sealed.
             1470          (1) Any final plan, specification, and report of a building or structure erected in this
             1471      state shall bear the seal of a professional engineer or professional structural engineer licensed
             1472      under this chapter, except as provided in Section 58-22-305 , in Title 58, Chapter 3a, Architect
             1473      Licensing Act, and by the codes adopted under Title [58] 61, Chapter [56] 2f, Utah Uniform
             1474      Building Standards Act.
             1475          (2) Any final plan, specification, and report prepared by, or under the supervision of,
             1476      the professional engineer or professional structural engineer shall bear the seal of the
             1477      professional engineer or professional structural engineer when submitted to a client, when filed
             1478      with public authorities, or when submitted to a building official for the purpose of obtaining a
             1479      building permit, even if the practice is exempt from licensure under Section 58-22-305 .
             1480          (3) Any final plan, map, sketch, survey, drawing, document, plat, and report shall bear
             1481      the seal of the professional land surveyor licensed under this chapter when submitted to a client
             1482      or when filed with public authorities.
             1483          Section 28. Section 58-53-304 is amended to read:
             1484           58-53-304. Exemptions from licensure.


             1485          In addition to the exemptions from licensure in Section 58-1-307 , the following may
             1486      engage in the stated limited acts or practices without being licensed under this chapter:
             1487          (1) a person preparing a site plan as defined in Subsection 58-53-102 (3), for a one-,
             1488      two-, three-, or four-family residence not exceeding two stories in height, exclusive of the
             1489      basement;
             1490          (2) a person designing sprinkler irrigation systems when licensed as a landscape
             1491      contractor under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act;
             1492          (3) a person licensed to practice professional engineering or professional structural
             1493      engineering under Title 58, Chapter 22, Professional Engineers and Professional Land
             1494      Surveyors Licensing Act;
             1495          (4) a person licensed to practice architecture under Title 58, Chapter 3a, Architects
             1496      Licensing Act;
             1497          (5) unlicensed employees of a person licensed under this chapter while preparing site
             1498      plans as defined in Subsection 58-53-102 (3), under the supervision of a landscape architect;
             1499      and
             1500          (6) an organization engaged in the practice of landscape architecture, provided that:
             1501          (a) the organization employs a principal; and
             1502          (b) all individuals employed by the organization, who are engaged in the practice of
             1503      landscape architecture, are licensed or exempt from licensure under this chapter.
             1504          Section 29. Section 58-53-602 is amended to read:
             1505           58-53-602. Site plans to be sealed.
             1506          (1) Any site plan prepared in this state shall bear the seal of a landscape architect
             1507      licensed under this chapter, except as provided in Section 58-53-304 , in Title 58, Chapter 22,
             1508      Professional Engineers and Professional Land Surveyors Licensing Act, in Title 58, Chapter 3a,
             1509      Architects Licensing Act, or by the codes adopted under Title [58] 61, Chapter [56] 2f, Utah
             1510      Uniform Building Standards Act.
             1511          (2) Any final site plan prepared by or under the supervision of the licensed landscape
             1512      architect shall bear the seal of the landscape architect when submitted to a client, or when
             1513      submitted to a building official for the purpose of obtaining a building permit, even if the
             1514      practice is exempt from licensure under Section 58-53-304 .
             1515          Section 30. Section 59-12-102 is amended to read:


             1516           59-12-102. Definitions.
             1517          As used in this chapter:
             1518          (1) (a) "Admission or user fees" includes season passes.
             1519          (b) "Admission or user fees" does not include annual membership dues to private
             1520      organizations.
             1521          (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
             1522      Section 59-12-102.1 .
             1523          (3) "Agreement combined tax rate" means the sum of the tax rates:
             1524          (a) listed under Subsection (4); and
             1525          (b) that are imposed within a local taxing jurisdiction.
             1526          (4) "Agreement sales and use tax" means a tax imposed under:
             1527          (a) Subsection 59-12-103 (2)(a)(i);
             1528          (b) Section 59-12-204 ;
             1529          (c) Section 59-12-401 ;
             1530          (d) Section 59-12-402 ;
             1531          (e) Section 59-12-501 ;
             1532          (f) Section 59-12-502 ;
             1533          (g) Section 59-12-703 ;
             1534          (h) Section 59-12-802 ;
             1535          (i) Section 59-12-804 ;
             1536          (j) Section 59-12-1001 ;
             1537          (k) Section 59-12-1102 ;
             1538          (l) Section 59-12-1302 ;
             1539          (m) Section 59-12-1402 ; or
             1540          (n) Section 59-12-1503 .
             1541          (5) "Aircraft" is as defined in Section 72-10-102 .
             1542          (6) "Alcoholic beverage" means a beverage that:
             1543          (a) is suitable for human consumption; and
             1544          (b) contains .5% or more alcohol by volume.
             1545          (7) "Area agency on aging" is as defined in Section 62A-3-101 .
             1546          (8) "Authorized carrier" means:


             1547          (a) in the case of vehicles operated over public highways, the holder of credentials
             1548      indicating that the vehicle is or will be operated pursuant to both the International Registration
             1549      Plan and the International Fuel Tax Agreement;
             1550          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             1551      certificate or air carrier's operating certificate; or
             1552          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             1553      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             1554          (9) (a) Except as provided in Subsection (9)(b), "biomass energy" means any of the
             1555      following that is used as the primary source of energy to produce fuel or electricity:
             1556          (i) material from a plant or tree; or
             1557          (ii) other organic matter that is available on a renewable basis, including:
             1558          (A) slash and brush from forests and woodlands;
             1559          (B) animal waste;
             1560          (C) methane produced:
             1561          (I) at landfills; or
             1562          (II) as a byproduct of the treatment of wastewater residuals;
             1563          (D) aquatic plants; and
             1564          (E) agricultural products.
             1565          (b) "Biomass energy" does not include:
             1566          (i) black liquor;
             1567          (ii) treated woods; or
             1568          (iii) biomass from municipal solid waste other than methane produced:
             1569          (A) at landfills; or
             1570          (B) as a byproduct of the treatment of wastewater residuals.
             1571          (10) "Certified automated system" means software certified by the governing board of
             1572      the agreement in accordance with Section 59-12-102.1 that:
             1573          (a) calculates the agreement sales and use tax imposed within a local taxing
             1574      jurisdiction:
             1575          (i) on a transaction; and
             1576          (ii) in the states that are members of the agreement;
             1577          (b) determines the amount of agreement sales and use tax to remit to a state that is a


             1578      member of the agreement; and
             1579          (c) maintains a record of the transaction described in Subsection (10)(a)(i).
             1580          (11) "Certified service provider" means an agent certified:
             1581          (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
             1582      and
             1583          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             1584      use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
             1585      own purchases.
             1586          (12) (a) Subject to Subsection (12)(b), "clothing" means all human wearing apparel
             1587      suitable for general use.
             1588          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1589      commission shall make rules:
             1590          (i) listing the items that constitute "clothing"; and
             1591          (ii) that are consistent with the list of items that constitute "clothing" under the
             1592      agreement.
             1593          (13) (a) For purposes of Subsection 59-12-104 (42), "coin-operated amusement device"
             1594      means:
             1595          (i) a coin-operated amusement, skill, or ride device;
             1596          (ii) that is not controlled through seller-assisted, over-the-counter, sales of tokens; and
             1597          (iii) includes a music machine, pinball machine, billiard machine, video game machine,
             1598      arcade machine, and a mechanical or electronic skill game or ride.
             1599          (b) For purposes of Subsection 59-12-104 (42), "coin-operated amusement device" does
             1600      not mean a coin-operated amusement device possessing a coinage mechanism that:
             1601          (i) accepts and registers multiple denominations of coins; and
             1602          (ii) allows the seller to collect the sales and use tax at the time an amusement device is
             1603      activated and operated by a person inserting coins into the device.
             1604          (14) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             1605      fuels that does not constitute industrial use under Subsection (34) or residential use under
             1606      Subsection (63).
             1607          (15) (a) "Common carrier" means a person engaged in or transacting the business of
             1608      transporting passengers, freight, merchandise, or other property for hire within this state.


             1609          (b) (i) "Common carrier" does not include a person who, at the time the person is
             1610      traveling to or from that person's place of employment, transports a passenger to or from the
             1611      passenger's place of employment.
             1612          (ii) For purposes of Subsection (15)(b)(i), in accordance with Title 63, Chapter 46a,
             1613      Utah Administrative Rulemaking Act, the commission may make rules defining what
             1614      constitutes a person's place of employment.
             1615          (16) "Component part" includes:
             1616          (a) poultry, dairy, and other livestock feed, and their components;
             1617          (b) baling ties and twine used in the baling of hay and straw;
             1618          (c) fuel used for providing temperature control of orchards and commercial
             1619      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             1620      off-highway type farm machinery; and
             1621          (d) feed, seeds, and seedlings.
             1622          (17) "Computer" means an electronic device that accepts information:
             1623          (a) (i) in digital form; or
             1624          (ii) in a form similar to digital form; and
             1625          (b) manipulates that information for a result based on a sequence of instructions.
             1626          (18) "Computer software" means a set of coded instructions designed to cause:
             1627          (a) a computer to perform a task; or
             1628          (b) automatic data processing equipment to perform a task.
             1629          (19) "Construction materials" means any tangible personal property that will be
             1630      converted into real property.
             1631          (20) "Delivered electronically" means delivered to a purchaser by means other than
             1632      tangible storage media.
             1633          (21) (a) "Delivery charge" means a charge:
             1634          (i) by a seller of:
             1635          (A) tangible personal property; or
             1636          (B) services; and
             1637          (ii) for preparation and delivery of the tangible personal property or services described
             1638      in Subsection (21)(a)(i) to a location designated by the purchaser.
             1639          (b) "Delivery charge" includes a charge for the following:


             1640          (i) transportation;
             1641          (ii) shipping;
             1642          (iii) postage;
             1643          (iv) handling;
             1644          (v) crating; or
             1645          (vi) packing.
             1646          (22) "Dietary supplement" means a product, other than tobacco, that:
             1647          (a) is intended to supplement the diet;
             1648          (b) contains one or more of the following dietary ingredients:
             1649          (i) a vitamin;
             1650          (ii) a mineral;
             1651          (iii) an herb or other botanical;
             1652          (iv) an amino acid;
             1653          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             1654      dietary intake; or
             1655          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             1656      described in Subsections (22)(b)(i) through (v);
             1657          (c) (i) except as provided in Subsection (22)(c)(ii), is intended for ingestion in:
             1658          (A) tablet form;
             1659          (B) capsule form;
             1660          (C) powder form;
             1661          (D) softgel form;
             1662          (E) gelcap form; or
             1663          (F) liquid form; or
             1664          (ii) notwithstanding Subsection (22)(c)(i), if the product is not intended for ingestion in
             1665      a form described in Subsections (22)(c)(i)(A) through (F), is not represented:
             1666          (A) as conventional food; and
             1667          (B) for use as a sole item of:
             1668          (I) a meal; or
             1669          (II) the diet; and
             1670          (d) is required to be labeled as a dietary supplement:


             1671          (i) identifiable by the "Supplemental Facts" box found on the label; and
             1672          (ii) as required by 21 C.F.R. Sec. 101.36.
             1673          (23) (a) "Direct mail" means printed material delivered or distributed by United States
             1674      mail or other delivery service:
             1675          (i) to:
             1676          (A) a mass audience; or
             1677          (B) addressees on a mailing list provided by a purchaser of the mailing list; and
             1678          (ii) if the cost of the printed material is not billed directly to the recipients.
             1679          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             1680      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             1681          (c) "Direct mail" does not include multiple items of printed material delivered to a
             1682      single address.
             1683          (24) (a) "Drug" means a compound, substance, or preparation, or a component of a
             1684      compound, substance, or preparation that is:
             1685          (i) recognized in:
             1686          (A) the official United States Pharmacopoeia;
             1687          (B) the official Homeopathic Pharmacopoeia of the United States;
             1688          (C) the official National Formulary; or
             1689          (D) a supplement to a publication listed in Subsections (24)(a)(i)(A) through (C);
             1690          (ii) intended for use in the:
             1691          (A) diagnosis of disease;
             1692          (B) cure of disease;
             1693          (C) mitigation of disease;
             1694          (D) treatment of disease; or
             1695          (E) prevention of disease; or
             1696          (iii) intended to affect:
             1697          (A) the structure of the body; or
             1698          (B) any function of the body.
             1699          (b) "Drug" does not include:
             1700          (i) food and food ingredients;
             1701          (ii) a dietary supplement;


             1702          (iii) an alcoholic beverage; or
             1703          (iv) a prosthetic device.
             1704          (25) (a) Except as provided in Subsection (25)(c), "durable medical equipment" means
             1705      equipment that:
             1706          (i) can withstand repeated use;
             1707          (ii) is primarily and customarily used to serve a medical purpose;
             1708          (iii) generally is not useful to a person in the absence of illness or injury;
             1709          (iv) is not worn in or on the body;
             1710          (v) is listed as eligible for payment under:
             1711          (A) Title XVIII of the federal Social Security Act; or
             1712          (B) the state plan for medical assistance under Title XIX of the federal Social Security
             1713      Act; and
             1714          (vi) is used for home use only.
             1715          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             1716      equipment described in Subsection (25)(a).
             1717          (c) Notwithstanding Subsection (25)(a), "durable medical equipment" does not include
             1718      mobility enhancing equipment.
             1719          (26) "Electronic" means:
             1720          (a) relating to technology; and
             1721          (b) having:
             1722          (i) electrical capabilities;
             1723          (ii) digital capabilities;
             1724          (iii) magnetic capabilities;
             1725          (iv) wireless capabilities;
             1726          (v) optical capabilities;
             1727          (vi) electromagnetic capabilities; or
             1728          (vii) capabilities similar to Subsections (26)(b)(i) through (vi).
             1729          (27) (a) "Food and food ingredients" means substances:
             1730          (i) regardless of whether the substances are in:
             1731          (A) liquid form;
             1732          (B) concentrated form;


             1733          (C) solid form;
             1734          (D) frozen form;
             1735          (E) dried form; or
             1736          (F) dehydrated form; and
             1737          (ii) that are:
             1738          (A) sold for:
             1739          (I) ingestion by humans; or
             1740          (II) chewing by humans; and
             1741          (B) consumed for the substance's:
             1742          (I) taste; or
             1743          (II) nutritional value.
             1744          (b) "Food and food ingredients" does not include:
             1745          (i) an alcoholic beverage;
             1746          (ii) tobacco; or
             1747          (iii) prepared food.
             1748          (28) (a) "Fundraising sales" means sales:
             1749          (i) (A) made by a school; or
             1750          (B) made by a school student;
             1751          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1752      materials, or provide transportation; and
             1753          (iii) that are part of an officially sanctioned school activity.
             1754          (b) For purposes of Subsection (28)(a)(iii), "officially sanctioned school activity"
             1755      means a school activity:
             1756          (i) that is conducted in accordance with a formal policy adopted by the school or school
             1757      district governing the authorization and supervision of fundraising activities;
             1758          (ii) that does not directly or indirectly compensate an individual teacher or other
             1759      educational personnel by direct payment, commissions, or payment in kind; and
             1760          (iii) the net or gross revenues from which are deposited in a dedicated account
             1761      controlled by the school or school district.
             1762          (29) "Geothermal energy" means energy contained in heat that continuously flows
             1763      outward from the earth that is used as the sole source of energy to produce electricity.


             1764          (30) "Governing board of the agreement" means the governing board of the agreement
             1765      that is:
             1766          (a) authorized to administer the agreement; and
             1767          (b) established in accordance with the agreement.
             1768          (31) (a) "Hearing aid" means:
             1769          (i) an instrument or device having an electronic component that is designed to:
             1770          (A) (I) improve impaired human hearing; or
             1771          (II) correct impaired human hearing; and
             1772          (B) (I) be worn in the human ear; or
             1773          (II) affixed behind the human ear;
             1774          (ii) an instrument or device that is surgically implanted into the cochlea; or
             1775          (iii) a telephone amplifying device.
             1776          (b) "Hearing aid" does not include:
             1777          (i) except as provided in Subsection (31)(a)(i)(B) or (31)(a)(ii), an instrument or device
             1778      having an electronic component that is designed to be worn on the body;
             1779          (ii) except as provided in Subsection (31)(a)(iii), an assistive listening device or system
             1780      designed to be used by one individual, including:
             1781          (A) a personal amplifying system;
             1782          (B) a personal FM system;
             1783          (C) a television listening system; or
             1784          (D) a device or system similar to a device or system described in Subsections
             1785      (31)(b)(ii)(A) through (C); or
             1786          (iii) an assistive listening device or system designed to be used by more than one
             1787      individual, including:
             1788          (A) a device or system installed in:
             1789          (I) an auditorium;
             1790          (II) a church;
             1791          (III) a conference room;
             1792          (IV) a synagogue; or
             1793          (V) a theater; or
             1794          (B) a device or system similar to a device or system described in Subsections


             1795      (31)(b)(iii)(A)(I) through (V).
             1796          (32) (a) "Hearing aid accessory" means a hearing aid:
             1797          (i) component;
             1798          (ii) attachment; or
             1799          (iii) accessory.
             1800          (b) "Hearing aid accessory" includes:
             1801          (i) a hearing aid neck loop;
             1802          (ii) a hearing aid cord;
             1803          (iii) a hearing aid ear mold;
             1804          (iv) hearing aid tubing;
             1805          (v) a hearing aid ear hook; or
             1806          (vi) a hearing aid remote control.
             1807          (c) "Hearing aid accessory" does not include:
             1808          (i) a component, attachment, or accessory designed to be used only with an:
             1809          (A) instrument or device described in Subsection (31)(b)(i); or
             1810          (B) assistive listening device or system described in Subsection (31)(b)(ii) or (iii); or
             1811          (ii) a hearing aid battery.
             1812          (33) "Hydroelectric energy" means water used as the sole source of energy to produce
             1813      electricity.
             1814          (34) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             1815      other fuels:
             1816          (a) in mining or extraction of minerals;
             1817          (b) in agricultural operations to produce an agricultural product up to the time of
             1818      harvest or placing the agricultural product into a storage facility, including:
             1819          (i) commercial greenhouses;
             1820          (ii) irrigation pumps;
             1821          (iii) farm machinery;
             1822          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             1823      registered under Title 41, Chapter 1a, Part 2, Registration; and
             1824          (v) other farming activities;
             1825          (c) in manufacturing tangible personal property at an establishment described in SIC


             1826      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             1827      Executive Office of the President, Office of Management and Budget; or
             1828          (d) by a scrap recycler if:
             1829          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1830      one or more of the following items into prepared grades of processed materials for use in new
             1831      products:
             1832          (A) iron;
             1833          (B) steel;
             1834          (C) nonferrous metal;
             1835          (D) paper;
             1836          (E) glass;
             1837          (F) plastic;
             1838          (G) textile; or
             1839          (H) rubber; and
             1840          (ii) the new products under Subsection (34)(d)(i) would otherwise be made with
             1841      nonrecycled materials.
             1842          (35) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             1843      personal property for:
             1844          (i) (A) a fixed term; or
             1845          (B) an indeterminate term; and
             1846          (ii) consideration.
             1847          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             1848      amount of consideration may be increased or decreased by reference to the amount realized
             1849      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             1850      Code.
             1851          (c) "Lease" or "rental" does not include:
             1852          (i) a transfer of possession or control of property under a security agreement or
             1853      deferred payment plan that requires the transfer of title upon completion of the required
             1854      payments;
             1855          (ii) a transfer of possession or control of property under an agreement:
             1856          (A) that requires the transfer of title upon completion of required payments; and


             1857          (B) in which the payment of an option price does not exceed the greater of:
             1858          (I) $100; or
             1859          (II) 1% of the total required payments; or
             1860          (iii) providing tangible personal property along with an operator for a fixed period of
             1861      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             1862      designed.
             1863          (d) For purposes of Subsection (35)(c)(iii), an operator is necessary for equipment to
             1864      perform as designed if the operator's duties exceed the:
             1865          (i) set-up of tangible personal property;
             1866          (ii) maintenance of tangible personal property; or
             1867          (iii) inspection of tangible personal property.
             1868          (36) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             1869      if the tangible storage media is not physically transferred to the purchaser.
             1870          (37) "Local taxing jurisdiction" means a:
             1871          (a) county that is authorized to impose an agreement sales and use tax;
             1872          (b) city that is authorized to impose an agreement sales and use tax; or
             1873          (c) town that is authorized to impose an agreement sales and use tax.
             1874          (38) "Manufactured home" is as defined in Section [ 58-56-3 ] 61-2f-103 .
             1875          (39) For purposes of Subsection 59-12-104 (14), "manufacturing facility" means:
             1876          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             1877      Industrial Classification Manual of the federal Executive Office of the President, Office of
             1878      Management and Budget; or
             1879          (b) a scrap recycler if:
             1880          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1881      one or more of the following items into prepared grades of processed materials for use in new
             1882      products:
             1883          (A) iron;
             1884          (B) steel;
             1885          (C) nonferrous metal;
             1886          (D) paper;
             1887          (E) glass;


             1888          (F) plastic;
             1889          (G) textile; or
             1890          (H) rubber; and
             1891          (ii) the new products under Subsection (39)(b)(i) would otherwise be made with
             1892      nonrecycled materials.
             1893          (40) "Mobile home" is as defined in Section [ 58-56-3 ] 61-2f-103 .
             1894          (41) "Mobile telecommunications service" is as defined in the Mobile
             1895      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1896          (42) (a) Except as provided in Subsection (42)(c), "mobility enhancing equipment"
             1897      means equipment that is:
             1898          (i) primarily and customarily used to provide or increase the ability to move from one
             1899      place to another;
             1900          (ii) appropriate for use in a:
             1901          (A) home; or
             1902          (B) motor vehicle;
             1903          (iii) not generally used by persons with normal mobility; and
             1904          (iv) listed as eligible for payment under:
             1905          (A) Title XVIII of the federal Social Security Act; or
             1906          (B) the state plan for medical assistance under Title XIX of the federal Social Security
             1907      Act.
             1908          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             1909      the equipment described in Subsection (42)(a).
             1910          (c) Notwithstanding Subsection (42)(a), "mobility enhancing equipment" does not
             1911      include:
             1912          (i) a motor vehicle;
             1913          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             1914      vehicle manufacturer;
             1915          (iii) durable medical equipment; or
             1916          (iv) a prosthetic device.
             1917          (43) "Model 1 seller" means a seller that has selected a certified service provider as the
             1918      seller's agent to perform all of the seller's sales and use tax functions for agreement sales and


             1919      use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
             1920      seller's own purchases.
             1921          (44) "Model 2 seller" means a seller that:
             1922          (a) except as provided in Subsection (44)(b), has selected a certified automated system
             1923      to perform the seller's sales tax functions for agreement sales and use taxes; and
             1924          (b) notwithstanding Subsection (44)(a), retains responsibility for remitting all of the
             1925      sales tax:
             1926          (i) collected by the seller; and
             1927          (ii) to the appropriate local taxing jurisdiction.
             1928          (45) (a) Subject to Subsection (45)(b), "model 3 seller" means a seller that has:
             1929          (i) sales in at least five states that are members of the agreement;
             1930          (ii) total annual sales revenues of at least $500,000,000;
             1931          (iii) a proprietary system that calculates the amount of tax:
             1932          (A) for an agreement sales and use tax; and
             1933          (B) due to each local taxing jurisdiction; and
             1934          (iv) entered into a performance agreement with the governing board of the agreement.
             1935          (b) For purposes of Subsection (45)(a), "model 3 seller" includes an affiliated group of
             1936      sellers using the same proprietary system.
             1937          (46) "Modular home" means a modular unit as defined in Section [ 58-56-3 ] 61-2f-103 .
             1938          (47) "Motor vehicle" is as defined in Section 41-1a-102 .
             1939          (48) (a) "Other fuels" means products that burn independently to produce heat or
             1940      energy.
             1941          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             1942      personal property.
             1943          (49) "Person" includes any individual, firm, partnership, joint venture, association,
             1944      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             1945      municipality, district, or other local governmental entity of the state, or any group or
             1946      combination acting as a unit.
             1947          (50) "Place of primary use":
             1948          (a) for telephone service other than mobile telecommunications service, means the
             1949      street address representative of where the purchaser's use of the telephone service primarily


             1950      occurs, which shall be:
             1951          (i) the residential street address of the purchaser; or
             1952          (ii) the primary business street address of the purchaser; or
             1953          (b) for mobile telecommunications service, is as defined in the Mobile
             1954      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1955          (51) "Postproduction" means an activity related to the finishing or duplication of a
             1956      medium described in Subsection 59-12-104 (60)(a).
             1957          (52) (a) "Prepared food" means:
             1958          (i) food:
             1959          (A) sold in a heated state; or
             1960          (B) heated by a seller;
             1961          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             1962      item; or
             1963          (iii) except as provided in Subsection (52)(c), food sold with an eating utensil provided
             1964      by the seller, including a:
             1965          (A) plate;
             1966          (B) knife;
             1967          (C) fork;
             1968          (D) spoon;
             1969          (E) glass;
             1970          (F) cup;
             1971          (G) napkin; or
             1972          (H) straw.
             1973          (b) "Prepared food" does not include:
             1974          (i) food that a seller only:
             1975          (A) cuts;
             1976          (B) repackages; or
             1977          (C) pasteurizes; or
             1978          (ii) (A) the following:
             1979          (I) raw egg;
             1980          (II) raw fish;


             1981          (III) raw meat;
             1982          (IV) raw poultry; or
             1983          (V) a food containing an item described in Subsections (52)(b)(ii)(A)(I) through (IV);
             1984      and
             1985          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             1986      Food and Drug Administration's Food Code that a consumer cook the items described in
             1987      Subsection (52)(b)(ii)(A) to prevent food borne illness.
             1988          (c) Notwithstanding Subsection (52)(a)(iii), an eating utensil provided by the seller
             1989      does not include the following used to transport the food:
             1990          (i) a container; or
             1991          (ii) packaging.
             1992          (53) "Prescription" means an order, formula, or recipe that is issued:
             1993          (a) (i) orally;
             1994          (ii) in writing;
             1995          (iii) electronically; or
             1996          (iv) by any other manner of transmission; and
             1997          (b) by a licensed practitioner authorized by the laws of a state.
             1998          (54) (a) Except as provided in Subsection (54)(b)(ii) or (iii), "prewritten computer
             1999      software" means computer software that is not designed and developed:
             2000          (i) by the author or other creator of the computer software; and
             2001          (ii) to the specifications of a specific purchaser.
             2002          (b) "Prewritten computer software" includes:
             2003          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2004      software is not designed and developed:
             2005          (A) by the author or other creator of the computer software; and
             2006          (B) to the specifications of a specific purchaser;
             2007          (ii) notwithstanding Subsection (54)(a), computer software designed and developed by
             2008      the author or other creator of the computer software to the specifications of a specific purchaser
             2009      if the computer software is sold to a person other than the purchaser; or
             2010          (iii) notwithstanding Subsection (54)(a) and except as provided in Subsection (54)(c),
             2011      prewritten computer software or a prewritten portion of prewritten computer software:


             2012          (A) that is modified or enhanced to any degree; and
             2013          (B) if the modification or enhancement described in Subsection (54)(b)(iii)(A) is
             2014      designed and developed to the specifications of a specific purchaser.
             2015          (c) Notwithstanding Subsection (54)(b)(iii), "prewritten computer software" does not
             2016      include a modification or enhancement described in Subsection (54)(b)(iii) if the charges for
             2017      the modification or enhancement are:
             2018          (i) reasonable; and
             2019          (ii) separately stated on the invoice or other statement of price provided to the
             2020      purchaser.
             2021          (55) (a) "Prosthetic device" means a device that is:
             2022          (i) worn on or in the body to:
             2023          (A) artificially replace a missing portion of the body;
             2024          (B) prevent or correct a physical deformity or physical malfunction; or
             2025          (C) support a weak or deformed portion of the body; and
             2026          (ii) listed as eligible for payment under:
             2027          (A) Title XVIII of the federal Social Security Act; or
             2028          (B) the state plan for medical assistance under Title XIX of the federal Social Security
             2029      Act.
             2030          (b) "Prosthetic device" includes:
             2031          (i) parts used in the repairs or renovation of a prosthetic device; or
             2032          (ii) replacement parts for a prosthetic device.
             2033          (c) "Prosthetic device" does not include:
             2034          (i) corrective eyeglasses;
             2035          (ii) contact lenses;
             2036          (iii) hearing aids; or
             2037          (iv) dental prostheses.
             2038          (56) (a) "Protective equipment" means an item:
             2039          (i) for human wear; and
             2040          (ii) that is:
             2041          (A) designed as protection:
             2042          (I) to the wearer against injury or disease; or


             2043          (II) against damage or injury of other persons or property; and
             2044          (B) not suitable for general use.
             2045          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2046      commission shall make rules:
             2047          (i) listing the items that constitute "protective equipment"; and
             2048          (ii) that are consistent with the list of items that constitute "protective equipment"
             2049      under the agreement.
             2050          (57) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             2051          (i) valued in money; and
             2052          (ii) for which tangible personal property or services are:
             2053          (A) sold;
             2054          (B) leased; or
             2055          (C) rented.
             2056          (b) "Purchase price" and "sales price" include:
             2057          (i) the seller's cost of the tangible personal property or services sold;
             2058          (ii) expenses of the seller, including:
             2059          (A) the cost of materials used;
             2060          (B) a labor cost;
             2061          (C) a service cost;
             2062          (D) interest;
             2063          (E) a loss;
             2064          (F) the cost of transportation to the seller; or
             2065          (G) a tax imposed on the seller;
             2066          (iii) a charge by the seller for any service necessary to complete the sale;
             2067          (iv) a delivery charge; or
             2068          (v) an installation charge.
             2069          (c) "Purchase price" and "sales price" do not include:
             2070          (i) a discount:
             2071          (A) in a form including:
             2072          (I) cash;
             2073          (II) term; or


             2074          (III) coupon;
             2075          (B) that is allowed by a seller;
             2076          (C) taken by a purchaser on a sale; and
             2077          (D) that is not reimbursed by a third party; or
             2078          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             2079      provided to the purchaser:
             2080          (A) the amount of a trade-in;
             2081          (B) the following from credit extended on the sale of tangible personal property or
             2082      services:
             2083          (I) interest charges;
             2084          (II) financing charges; or
             2085          (III) carrying charges; or
             2086          (C) a tax or fee legally imposed directly on the consumer.
             2087          (58) "Purchaser" means a person to whom:
             2088          (a) a sale of tangible personal property is made; or
             2089          (b) a service is furnished.
             2090          (59) "Regularly rented" means:
             2091          (a) rented to a guest for value three or more times during a calendar year; or
             2092          (b) advertised or held out to the public as a place that is regularly rented to guests for
             2093      value.
             2094          (60) "Renewable energy" means:
             2095          (a) biomass energy;
             2096          (b) hydroelectric energy;
             2097          (c) geothermal energy;
             2098          (d) solar energy; or
             2099          (e) wind energy.
             2100          (61) (a) "Renewable energy production facility" means a facility that:
             2101          (i) uses renewable energy to produce electricity; and
             2102          (ii) has a production capacity of 20 kilowatts or greater.
             2103          (b) A facility is a renewable energy production facility regardless of whether the
             2104      facility is:


             2105          (i) connected to an electric grid; or
             2106          (ii) located on the premises of an electricity consumer.
             2107          (62) "Rental" is as defined in Subsection (35).
             2108          (63) "Residential use" means the use in or around a home, apartment building, sleeping
             2109      quarters, and similar facilities or accommodations.
             2110          (64) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             2111      than:
             2112          (a) resale;
             2113          (b) sublease; or
             2114          (c) subrent.
             2115          (65) (a) "Retailer" means any person engaged in a regularly organized business in
             2116      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             2117      who is selling to the user or consumer and not for resale.
             2118          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             2119      engaged in the business of selling to users or consumers within the state.
             2120          (66) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             2121      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             2122      Subsection 59-12-103 (1), for consideration.
             2123          (b) "Sale" includes:
             2124          (i) installment and credit sales;
             2125          (ii) any closed transaction constituting a sale;
             2126          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             2127      chapter;
             2128          (iv) any transaction if the possession of property is transferred but the seller retains the
             2129      title as security for the payment of the price; and
             2130          (v) any transaction under which right to possession, operation, or use of any article of
             2131      tangible personal property is granted under a lease or contract and the transfer of possession
             2132      would be taxable if an outright sale were made.
             2133          (67) "Sale at retail" is as defined in Subsection (64).
             2134          (68) "Sale-leaseback transaction" means a transaction by which title to tangible
             2135      personal property that is subject to a tax under this chapter is transferred:


             2136          (a) by a purchaser-lessee;
             2137          (b) to a lessor;
             2138          (c) for consideration; and
             2139          (d) if:
             2140          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             2141      of the tangible personal property;
             2142          (ii) the sale of the tangible personal property to the lessor is intended as a form of
             2143      financing:
             2144          (A) for the property; and
             2145          (B) to the purchaser-lessee; and
             2146          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             2147      is required to:
             2148          (A) capitalize the property for financial reporting purposes; and
             2149          (B) account for the lease payments as payments made under a financing arrangement.
             2150          (69) "Sales price" is as defined in Subsection (57).
             2151          (70) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             2152      amounts charged by a school:
             2153          (i) sales that are directly related to the school's educational functions or activities
             2154      including:
             2155          (A) the sale of:
             2156          (I) textbooks;
             2157          (II) textbook fees;
             2158          (III) laboratory fees;
             2159          (IV) laboratory supplies; or
             2160          (V) safety equipment;
             2161          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             2162      that:
             2163          (I) a student is specifically required to wear as a condition of participation in a
             2164      school-related event or school-related activity; and
             2165          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             2166      place of ordinary clothing;


             2167          (C) sales of the following if the net or gross revenues generated by the sales are
             2168      deposited into a school district fund or school fund dedicated to school meals:
             2169          (I) food and food ingredients; or
             2170          (II) prepared food; or
             2171          (D) transportation charges for official school activities; or
             2172          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             2173      event or school-related activity.
             2174          (b) "Sales relating to schools" does not include:
             2175          (i) bookstore sales of items that are not educational materials or supplies;
             2176          (ii) except as provided in Subsection (70)(a)(i)(B):
             2177          (A) clothing;
             2178          (B) clothing accessories or equipment;
             2179          (C) protective equipment; or
             2180          (D) sports or recreational equipment; or
             2181          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             2182      event or school-related activity if the amounts paid or charged are passed through to a person:
             2183          (A) other than a:
             2184          (I) school;
             2185          (II) nonprofit organization authorized by a school board or a governing body of a
             2186      private school to organize and direct a competitive secondary school activity; or
             2187          (III) nonprofit association authorized by a school board or a governing body of a
             2188      private school to organize and direct a competitive secondary school activity; and
             2189          (B) that is required to collect sales and use taxes under this chapter.
             2190          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2191      commission may make rules defining the term "passed through."
             2192          (71) For purposes of this section and Section 59-12-104 , "school" means:
             2193          (a) an elementary school or a secondary school that:
             2194          (i) is a:
             2195          (A) public school; or
             2196          (B) private school; and
             2197          (ii) provides instruction for one or more grades kindergarten through 12; or


             2198          (b) a public school district.
             2199          (72) "Seller" means a person that makes a sale, lease, or rental of:
             2200          (a) tangible personal property; or
             2201          (b) a service.
             2202          (73) (a) "Semiconductor fabricating or processing materials" means tangible personal
             2203      property:
             2204          (i) used primarily in the process of:
             2205          (A) (I) manufacturing a semiconductor; or
             2206          (II) fabricating a semiconductor; or
             2207          (B) maintaining an environment suitable for a semiconductor; or
             2208          (ii) consumed primarily in the process of:
             2209          (A) (I) manufacturing a semiconductor; or
             2210          (II) fabricating a semiconductor; or
             2211          (B) maintaining an environment suitable for a semiconductor.
             2212          (b) "Semiconductor fabricating or processing materials" includes:
             2213          (i) parts used in the repairs or renovations of tangible personal property described in
             2214      Subsection (73)(a); or
             2215          (ii) a chemical, catalyst, or other material used to:
             2216          (A) produce or induce in a semiconductor a:
             2217          (I) chemical change; or
             2218          (II) physical change;
             2219          (B) remove impurities from a semiconductor; or
             2220          (C) improve the marketable condition of a semiconductor.
             2221          (74) "Senior citizen center" means a facility having the primary purpose of providing
             2222      services to the aged as defined in Section 62A-3-101 .
             2223          (75) "Simplified electronic return" means the electronic return:
             2224          (a) described in Section 318(C) of the agreement; and
             2225          (b) approved by the governing board of the agreement.
             2226          (76) "Solar energy" means the sun used as the sole source of energy for producing
             2227      electricity.
             2228          (77) (a) "Sports or recreational equipment" means an item:


             2229          (i) designed for human use; and
             2230          (ii) that is:
             2231          (A) worn in conjunction with:
             2232          (I) an athletic activity; or
             2233          (II) a recreational activity; and
             2234          (B) not suitable for general use.
             2235          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2236      commission shall make rules:
             2237          (i) listing the items that constitute "sports or recreational equipment"; and
             2238          (ii) that are consistent with the list of items that constitute "sports or recreational
             2239      equipment" under the agreement.
             2240          (78) "State" means the state of Utah, its departments, and agencies.
             2241          (79) "Storage" means any keeping or retention of tangible personal property or any
             2242      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             2243      sale in the regular course of business.
             2244          (80) (a) "Tangible personal property" means personal property that:
             2245          (i) may be:
             2246          (A) seen;
             2247          (B) weighed;
             2248          (C) measured;
             2249          (D) felt; or
             2250          (E) touched; or
             2251          (ii) is in any manner perceptible to the senses.
             2252          (b) "Tangible personal property" includes:
             2253          (i) electricity;
             2254          (ii) water;
             2255          (iii) gas;
             2256          (iv) steam; or
             2257          (v) prewritten computer software.
             2258          (81) (a) "Telephone service" means a two-way transmission:
             2259          (i) by:


             2260          (A) wire;
             2261          (B) radio;
             2262          (C) lightwave; or
             2263          (D) other electromagnetic means; and
             2264          (ii) of one or more of the following:
             2265          (A) a sign;
             2266          (B) a signal;
             2267          (C) writing;
             2268          (D) an image;
             2269          (E) sound;
             2270          (F) a message;
             2271          (G) data; or
             2272          (H) other information of any nature.
             2273          (b) "Telephone service" includes:
             2274          (i) mobile telecommunications service;
             2275          (ii) private communications service; or
             2276          (iii) automated digital telephone answering service.
             2277          (c) "Telephone service" does not include a service or a transaction that a state or a
             2278      political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
             2279      Tax Freedom Act, Pub. L. No. 105-277.
             2280          (82) Notwithstanding where a call is billed or paid, "telephone service address" means:
             2281          (a) if the location described in this Subsection (82)(a) is known, the location of the
             2282      telephone service equipment:
             2283          (i) to which a call is charged; and
             2284          (ii) from which the call originates or terminates;
             2285          (b) if the location described in Subsection (82)(a) is not known but the location
             2286      described in this Subsection (82)(b) is known, the location of the origination point of the signal
             2287      of the telephone service first identified by:
             2288          (i) the telecommunications system of the seller; or
             2289          (ii) if the system used to transport the signal is not that of the seller, information
             2290      received by the seller from its service provider; or


             2291          (c) if the locations described in Subsection (82)(a) or (b) are not known, the location of
             2292      a purchaser's primary place of use.
             2293          (83) (a) "Telephone service provider" means a person that:
             2294          (i) owns, controls, operates, or manages a telephone service; and
             2295          (ii) engages in an activity described in Subsection (83)(a)(i) for the shared use with or
             2296      resale to any person of the telephone service.
             2297          (b) A person described in Subsection (83)(a) is a telephone service provider whether or
             2298      not the Public Service Commission of Utah regulates:
             2299          (i) that person; or
             2300          (ii) the telephone service that the person owns, controls, operates, or manages.
             2301          (84) "Tobacco" means:
             2302          (a) a cigarette;
             2303          (b) a cigar;
             2304          (c) chewing tobacco;
             2305          (d) pipe tobacco; or
             2306          (e) any other item that contains tobacco.
             2307          (85) (a) "Use" means the exercise of any right or power over tangible personal property
             2308      under Subsection 59-12-103 (1), incident to the ownership or the leasing of that property, item,
             2309      or service.
             2310          (b) "Use" does not include the sale, display, demonstration, or trial of that property in
             2311      the regular course of business and held for resale.
             2312          (86) (a) Subject to Subsection (86)(b), "vehicle" means the following that are required
             2313      to be titled, registered, or titled and registered:
             2314          (i) an aircraft as defined in Section 72-10-102 ;
             2315          (ii) a vehicle as defined in Section 41-1a-102 ;
             2316          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             2317          (iv) a vessel as defined in Section 41-1a-102 .
             2318          (b) For purposes of Subsection 59-12-104 (35) only, "vehicle" includes:
             2319          (i) a vehicle described in Subsection (86)(a); or
             2320          (ii) (A) a locomotive;
             2321          (B) a freight car;


             2322          (C) railroad work equipment; or
             2323          (D) other railroad rolling stock.
             2324          (87) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             2325      exchanging a vehicle as defined in Subsection (86).
             2326          (88) (a) Except as provided in Subsection (88)(b), "waste energy facility" means a
             2327      facility that generates electricity:
             2328          (i) using as the primary source of energy waste materials that would be placed in a
             2329      landfill or refuse pit if it were not used to generate electricity, including:
             2330          (A) tires;
             2331          (B) waste coal; or
             2332          (C) oil shale; and
             2333          (ii) in amounts greater than actually required for the operation of the facility.
             2334          (b) "Waste energy facility" does not include a facility that incinerates:
             2335          (i) municipal solid waste;
             2336          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             2337          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             2338          (89) "Watercraft" means a vessel as defined in Section 73-18-2 .
             2339          (90) "Wind energy" means wind used as the sole source of energy to produce
             2340      electricity.
             2341          (91) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             2342      location by the United States Postal Service.
             2343          Section 31. Section 61-2e-101 , which is renumbered from Section 58-55-101 is
             2344      renumbered and amended to read:
             2345     
CHAPTER 2e. UTAH CONSTRUCTION TRADES LICENSING ACT

             2346     
Part 1. General Provisions

             2347           [58-55-101].     61-2e-101. Title.
             2348          This chapter is known as the "Utah Construction Trades Licensing Act."
             2349          Section 32. Section 61-2e-102 , which is renumbered from Section 58-55-102 is
             2350      renumbered and amended to read:
             2351           [58-55-102].     61-2e-102. Definitions.
             2352          In addition to the definitions in Section 58-1-102 , as used in this chapter:


             2353          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
             2354      maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
             2355      except as provided in Subsection (1)(b).
             2356          (b) "Alarm business or company" does not include:
             2357          (i) a person engaged in the manufacture and sale of alarm systems when:
             2358          (A) that person is not engaged in the installation, maintenance, alteration, repair,
             2359      replacement, servicing, or monitoring of alarm systems[,]; and
             2360          (B) the manufacture or sale:
             2361          (I) occurs only at a place of business established by the person engaged in the
             2362      manufacture or sale; and
             2363          (II) does not involve site visits at the place or intended place of installation of an alarm
             2364      system; or
             2365          (ii) an owner of an alarm system, or an employee of the owner of an alarm system who
             2366      is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
             2367      of the alarm system owned by that owner.
             2368          (2) "Alarm company agent" means any individual employed within this state by a
             2369      person engaged in the alarm business.
             2370          (3) "Alarm system" means equipment and devices assembled for the purpose of:
             2371          (a) detecting and signaling unauthorized intrusion or entry into or onto certain
             2372      premises; or
             2373          (b) signaling a robbery or attempted robbery on protected premises.
             2374          (4) "Apprentice electrician" means a person licensed under this chapter as an
             2375      apprentice electrician who is learning the electrical trade under approved supervision of:
             2376          (a) a master electrician[,];
             2377          (b) a residential master electrician[,];
             2378          (c) a journeyman electrician[,]; or
             2379          (d) a residential journeyman electrician.
             2380          (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
             2381      plumber who is learning the plumbing trade under approved supervision of a journeyman
             2382      plumber.
             2383          (6) "Approved supervision" means the immediate supervision of apprentices by


             2384      qualified licensed electricians or plumbers as a part of a planned program of training.
             2385          (7) "Board" means one of the following created in Section 61-2e-201 :
             2386          (a) the Electrician Licensing Board[,];
             2387          (b) Alarm System Security and Licensing Board[,]; or
             2388          (c) Plumbers Licensing Board [created in Section 58-55-201 ].
             2389          (8) "Building inspector" means a person licensed by the division under Section
             2390      61-2f-302 .
             2391          [(8)] (9) "Combustion system" means an assembly consisting of:
             2392          (a) piping and components with a means for conveying, either continuously or
             2393      intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
             2394      appliance;
             2395          (b) the electric control and combustion air supply and venting systems; and
             2396          (c) components intended to achieve control of quantity, flow, and pressure.
             2397          [(9)] (10) "Commission" means the Construction Services Commission created under
             2398      Section [ 58-55-103 ] 61-2e-103 .
             2399          [(10)] (11) "Construction trade" means any trade or occupation involving:
             2400          (a) construction, alteration, remodeling, repairing, wrecking or demolition, addition to,
             2401      or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation or
             2402      other project, development, or improvement to other than personal property; or
             2403          (b) installation or repair of a residential or commercial natural gas appliance or
             2404      combustion system.
             2405          [(11)] (12) "Construction trades instructor" means a person licensed under this chapter
             2406      to teach one or more construction trades in both a classroom and project environment, where a
             2407      project is intended for sale to or use by the public and is completed under the direction of the
             2408      instructor, who has no economic interest in the project.
             2409          [(12)] (13) (a) "Contractor" means any person who for compensation other than wages
             2410      as an employee undertakes any work in the construction, plumbing, or electrical trade for
             2411      which licensure is required under this chapter and includes:
             2412          (i) a person who builds:
             2413          (A) any structure on [his] the person's own property for the purpose of sale; or [who
             2414      builds]


             2415          (B) any structure intended for public use on [his] the person's own property;
             2416          (ii) any person who represents himself to be a contractor by advertising or any other
             2417      means;
             2418          (iii) any person engaged as a maintenance person, other than an employee, who
             2419      regularly engages in activities set forth under the definition of "construction trade";
             2420          (iv) any person engaged in any construction trade for which licensure is required under
             2421      this chapter; or
             2422          (v) a construction manager who performs management and counseling services on a
             2423      construction project for a fee.
             2424          (b) "Contractor" does not include an alarm company or alarm company agent.
             2425          (14) "Department" means the Department of Commerce.
             2426          (15) "Director" means the director of the Division of Real Estate.
             2427          (16) "Division" means the Division of Real Estate.
             2428          [(13)] (17) (a) "Electrical trade" means the performance of any electrical work involved
             2429      in the installation, construction, alteration, change, repair, removal, or maintenance of facilities,
             2430      buildings, or appendages or appurtenances.
             2431          (b) "Electrical trade" does not include:
             2432          (i) transporting or handling electrical materials;
             2433          (ii) preparing clearance for raceways for wiring; or
             2434          (iii) work commonly done by unskilled labor on any installations under the exclusive
             2435      control of electrical utilities.
             2436          (c) For purposes of Subsection [(13)] (17)(b):
             2437          (i) no more than one unlicensed person may be so employed unless more than five
             2438      licensed electricians are employed by the shop; and
             2439          (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio
             2440      permitted by this Subsection [(13)] (17)(c).
             2441          [(14)] (18) "Employee" means an individual as defined by the division by rule giving
             2442      consideration to the definition adopted by the Internal Revenue Service and the Department of
             2443      Workforce Services.
             2444          [(15)] (19) "Engage in a construction trade" means to:
             2445          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged


             2446      in a construction trade; or
             2447          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
             2448      to believe one is or will act as a contractor.
             2449          [(16)] (20) (a) "Financial responsibility" means a demonstration of a current and
             2450      expected future condition of financial solvency evidencing a reasonable expectation to the
             2451      division and the board that an applicant or licensee can successfully engage in business as a
             2452      contractor without jeopardy to the public health, safety, and welfare.
             2453          (b) Financial responsibility may be determined by an evaluation of the total history
             2454      concerning the licensee or applicant including past, present, and expected condition and record
             2455      of financial solvency and business conduct.
             2456          [(17)] (21) "Gas appliance" means any device that uses natural gas to produce light,
             2457      heat, power, steam, hot water, refrigeration, or air conditioning.
             2458          [(18)] (22) (a) "General building contractor" means a person licensed under this
             2459      chapter as a general building contractor qualified by education, training, experience, and
             2460      knowledge to perform or superintend construction of structures for the support, shelter, and
             2461      enclosure of persons, animals, chattels, or movable property of any kind or any of the
             2462      components of that construction except plumbing, electrical work, mechanical work, and
             2463      manufactured housing installation, for which the general building contractor shall employ the
             2464      services of a contractor licensed in the particular specialty, except that a general building
             2465      contractor engaged in the construction of single-family and multifamily residences up to four
             2466      units may perform the mechanical work and hire a licensed plumber or electrician as an
             2467      employee.
             2468          (b) The division may by rule exclude general building contractors from engaging in the
             2469      performance of other construction specialties in which there is represented a substantial risk to
             2470      the public health, safety, and welfare, and for which a license is required unless that general
             2471      building contractor holds a valid license in that specialty classification.
             2472          [(19)] (23) (a) "General engineering contractor" means a person licensed under this
             2473      chapter as a general engineering contractor qualified by education, training, experience, and
             2474      knowledge to perform construction of fixed works in any of the following:
             2475          (i) irrigation[,];
             2476          (ii) drainage[,];


             2477          (iii) water[,];
             2478          (iv) power[,];
             2479          (v) water supply[,];
             2480          (vi) flood control[,];
             2481          (vii) inland waterways[,];
             2482          (viii) harbors[,];
             2483          (ix) railroads[,];
             2484          (x) highways[,];
             2485          (xi) tunnels[,];
             2486          (xii) airports and runways[,];
             2487          (xiii) sewers and bridges[,];
             2488          (xix) refineries[,];
             2489          (xx) pipelines[,];
             2490          (xxi) chemical and industrial plants requiring specialized engineering knowledge and
             2491      skill[,];
             2492          (xxii) piers[, and];
             2493          (xxiii) foundations[,]; or
             2494          (xxiv) any of the components of [those] the works described in this Subsection (23).
             2495          (b) A general engineering contractor may not perform construction of structures built
             2496      primarily for the support, shelter, and enclosure of persons, animals, and chattels.
             2497          [(20)] (24) "Immediate supervision" means reasonable direction, oversight, inspection,
             2498      and evaluation of the work of a person, in or out of the immediate presence of the supervising
             2499      person, so as to ensure that the end result complies with applicable standards.
             2500          [(21)] (25) "Individual" means a natural person.
             2501          [(22)] (26) "Journeyman electrician" means a person licensed under this chapter as a
             2502      journeyman electrician having the qualifications, training, experience, and knowledge to wire,
             2503      install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
             2504          [(23)] (27) "Journeyman plumber" means a person licensed under this chapter as a
             2505      journeyman plumber having the qualifications, training, experience, and technical knowledge
             2506      to engage in the plumbing trade.
             2507          [(24)] (28) "Master electrician" means a person licensed under this chapter as a master


             2508      electrician having the qualifications, training, experience, and knowledge to properly plan,
             2509      layout, and supervise the wiring, installation, and repair of electrical apparatus and equipment
             2510      for light, heat, power, and other purposes.
             2511          [(25)] (29) "Person" means:
             2512          (a) a natural person[,];
             2513          (b) a sole proprietorship[,];
             2514          (c) a joint venture[,];
             2515          (d) a corporation[,];
             2516          (e) a limited liability company[,];
             2517          (f) an association[,]; or
             2518          (g) an organization of any type.
             2519          [(26)] (30) (a) "Plumbing trade" means the performance of any mechanical work
             2520      pertaining to the installation, alteration, change, repair, removal, maintenance, or use in
             2521      buildings, or within three feet beyond the outside walls of buildings of pipes, fixtures, and
             2522      fittings for:
             2523          (i) delivery of the water supply;
             2524          (ii) discharge of liquid and water carried waste; or
             2525          (iii) the building drainage system within the walls of the building.
             2526          (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
             2527      fixtures and fixture traps, soil, waste and vent pipes, and the building drain and roof drains
             2528      together with their devices, appurtenances, and connections where installed within the outside
             2529      walls of the building.
             2530          [(27)] (31) (a) "Ratio of apprentices" means, for the purpose of determining
             2531      compliance with the requirements for planned programs of training and electrician apprentice
             2532      licensing applications, the shop ratio of apprentice electricians to journeyman or master
             2533      electricians shall be one journeyman or master electrician to one apprentice on industrial and
             2534      commercial work, and one journeyman or master electrician to three apprentices on residential
             2535      work.
             2536          (b) On-the-job training shall be under circumstances in which the ratio of apprentices
             2537      to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
             2538      three apprentices to one supervisor on residential projects.


             2539          [(28)] (32) "Residential and small commercial contractor" means a person licensed
             2540      under this chapter as a residential and small commercial contractor qualified by education,
             2541      training, experience, and knowledge to perform or superintend the construction of
             2542      single-family residences, multifamily residences up to four units, and commercial construction
             2543      of not more than three stories above ground and not more than 20,000 square feet, or any of the
             2544      components of that construction except plumbing, electrical work, mechanical work, and
             2545      manufactured housing installation, for which the residential and small commercial contractor
             2546      shall employ the services of a contractor licensed in the particular specialty, except that a
             2547      residential and small commercial contractor engaged in the construction of single-family and
             2548      multifamily residences up to four units may perform the mechanical work and hire a licensed
             2549      plumber or electrician as an employee.
             2550          [(29)] (33) "Residential apprentice plumber" means a person licensed under this
             2551      chapter as a residential apprentice plumber who is learning the residential plumbing trade while
             2552      working on residential buildings under the approved supervision of a residential journeyman
             2553      plumber or a journeyman plumber.
             2554          [(30)] (34) "Residential building," as it relates to the license classification of residential
             2555      apprentice plumber and residential journeyman plumber, means a single or multiple family
             2556      dwelling of up to four units.
             2557          [(31)] (35) "Residential journeyman electrician" means a person licensed under this
             2558      chapter as a residential journeyman electrician having the qualifications, training, experience,
             2559      and knowledge to wire, install, and repair electrical apparatus and equipment for light, heat,
             2560      power, and other purposes on buildings using primarily nonmetallic sheath cable.
             2561          [(32)] (36) "Residential journeyman plumber" means a person licensed under this
             2562      chapter as a residential journeyman plumber having the qualifications, training, experience, and
             2563      knowledge to engage in the plumbing trade as limited to the plumbing of residential buildings.
             2564          [(33)] (37) "Residential master electrician" means a person licensed under this chapter
             2565      as a residential master electrician having the qualifications, training, experience, and
             2566      knowledge to properly plan, layout, and supervise the wiring, installation, and repair of
             2567      electrical apparatus and equipment for light, heat, power, and other purposes on residential
             2568      projects.
             2569          [(34)] (38) "Residential project," as it relates to an electrician or electrical contractor,


             2570      means buildings primarily wired with nonmetallic sheathed cable, in accordance with standard
             2571      rules and regulations governing this work, including the National Electrical Code, and in which
             2572      the voltage does not exceed 250 volts line to line and 125 volts to ground.
             2573          [(35)] (39) "Specialty contractor" means a person licensed under this chapter under a
             2574      specialty contractor classification established by rule, who is qualified by education, training,
             2575      experience, and knowledge to perform those construction trades and crafts requiring
             2576      specialized skill, the regulation of which are determined by the division to be in the best
             2577      interest of the public health, safety, and welfare. A specialty contractor may perform work in
             2578      crafts or trades other than those in which [he] the specialty contractor is licensed if they are
             2579      incidental to the performance of [his] the speciality contractor's licensed craft or trade.
             2580          [(36)] (40) "Unlawful conduct" is as defined in [Sections 58-1-501 and 58-55-501 ]
             2581      Section 61-2e-501 .
             2582          [(37)] (41) "Unprofessional conduct" is as defined in [Sections 58-1-501 and
             2583      58-55-502 ] Section 61-2e-502 and as may be further defined by rule.
             2584          [(38)] (42) "Wages" means amounts due to an employee for labor or services whether
             2585      the amount is fixed or ascertained on a time, task, piece, commission, or other basis for
             2586      calculating the amount.
             2587          Section 33. Section 61-2e-103 , which is renumbered from Section 58-55-103 is
             2588      renumbered and amended to read:
             2589           [58-55-103].     61-2e-103. Construction Services Commission created --
             2590      Functions -- Appointment -- Qualifications and terms of members -- Vacancies --
             2591      Expenses -- Meetings.
             2592          (1) (a) There is created within the division the Construction Services Commission.
             2593          (b) The commission shall:
             2594          (i) with the concurrence of the director, make reasonable rules under Title 63, Chapter
             2595      46a, Utah Administrative Rulemaking Act, to administer and enforce this chapter which are
             2596      consistent with this chapter including:
             2597          (A) licensing of various licensees;
             2598          (B) examination requirements and administration of the examinations, to include
             2599      approving and establishing a passing score for applicant examinations;
             2600          (C) standards of supervision for students or persons in training to become qualified to


             2601      obtain a license in the trade they represent; [and]
             2602          (D) standards of conduct for various licensees; and
             2603          (E) enforcement process by building inspectors as provided in Section 61-2e-402 .
             2604          (ii) approve or disapprove fees adopted by the division under Section 63-38-3.2 ;
             2605          (iii) except where the boards conduct them, conduct all administrative hearings not
             2606      delegated to an administrative law judge relating to the licensing of any applicant;
             2607          (iv) except as otherwise provided in Sections 38-11-207 and [ 58-55-503 ] 61-2e-503 ,
             2608      with the concurrence of the director, impose sanctions against licensees and certificate holders
             2609      with the same authority as the division under Section [ 58-1-401 ] 61-2e-401 ;
             2610          (v) advise the director on the administration and enforcement of any matters affecting
             2611      the division and the construction industry;
             2612          (vi) advise the director on matters affecting the division budget;
             2613          (vii) advise and assist trade associations in conducting construction trade seminars and
             2614      industry education and promotion; and
             2615          (viii) perform other duties as provided by this chapter.
             2616          [(2) (a) Initially the commission shall be comprised of the five members of the
             2617      Contractors Licensing Board and two of the three chair persons from the Plumbers Licensing
             2618      Board, the Alarm System Security and Licensing Board, and the Electricians Licensing Board.]
             2619          [(b) The terms of office of the commission members who are serving on the
             2620      Contractors Licensing Board shall continue as they serve on the commission.]
             2621          [(c)] (2) [Beginning July 1, 2004, the] The commission shall be comprised of nine
             2622      members appointed by the executive director with the approval of the governor from the
             2623      following groups:
             2624          [(i)] (a) one member shall be a licensed general engineering contractor;
             2625          [(ii)] (b) one member shall be a licensed general building contractor;
             2626          [(iii)] (c) two members shall be licensed residential and small commercial contractors;
             2627          [(iv)] (d) three members shall be the three chair persons from:
             2628          (i) the Plumbers Licensing Board[,];
             2629          (ii) the Alarm System Security and Licensing Board[,]; and
             2630          (iii) the Electricians Licensing Board; and
             2631          [(v)] (d) two members shall be from the general public[, provided, however that the


             2632      certified public accountant on the Contractors Licensing Board will continue to serve until the
             2633      current term expires, after which both members under this Subsection (2)(c)(v) shall be
             2634      appointed from the general public].
             2635          (3) (a) Except as required by Subsection (3)(b), as terms of current commission
             2636      members expire, the executive director with the approval of the governor shall appoint each
             2637      new member or reappointed member to a four-year term ending June 30.
             2638          (b) Notwithstanding the requirements of Subsection (3)(a), the executive director with
             2639      the approval of the governor shall, at the time of appointment or reappointment, adjust the
             2640      length of terms to stagger the terms of commission members so that approximately 1/2 of the
             2641      commission members are appointed every two years.
             2642          (c) A commission member may not serve more than two consecutive terms.
             2643          (4) The commission shall elect annually one of its members as chair, for a term of one
             2644      year.
             2645          (5) When a vacancy occurs in the membership for any reason, the replacement shall be
             2646      appointed for the unexpired term.
             2647          (6) (a) Members may not receive compensation or benefits for their services, but may
             2648      receive per diem and expenses incurred in the performance of the members' official duties at
             2649      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2650          (b) Members may decline to receive per diem and expenses for their service.
             2651          (7) (a) The commission shall meet at least monthly unless the director determines
             2652      otherwise.
             2653          (b) The director may call additional meetings:
             2654          (i) at the director's discretion[,];
             2655          (ii) upon the request of the chair[,]; or
             2656          (iii) upon the written request of four or more commission members.
             2657          (8) (a) Five members constitute a quorum for the transaction of business.
             2658          (b) If a quorum is present when a vote is taken, the affirmative vote of commission
             2659      members present is the act of the commission.
             2660          (9) The commission shall comply with the procedures and requirements of Title 13,
             2661      Chapter 1, Department of Commerce, and Title 63, Chapter 46b, Administrative Procedures
             2662      Act, in all of its adjudicative proceedings.


             2663          Section 34. Section 61-2e-104 is enacted to read:
             2664          61-2e-104. Adjudicative proceedings.
             2665          (1) The division, the commission, and the boards created under this chapter shall
             2666      comply with the procedures and requirements of Title 13, Chapter 1, Department of
             2667      Commerce, and Title 63, Chapter 46b, Administrative Procedures Act, in all of their
             2668      adjudicative proceedings as defined by Subsection 63-46b-2 (1).
             2669          (2) Before proceeding under Section 63-46b-20 , the division shall review the proposed
             2670      action with a committee of no less than three licensees appointed by the chair of the licensing
             2671      board created under this chapter for the profession of the person against whom the action is
             2672      proposed.
             2673          (3) Notwithstanding Title 63, Chapter 46b, Administrative Procedures Act, a warning
             2674      or final disposition letter that does not constitute disciplinary action against the addressee,
             2675      issued in response to a complaint of unprofessional or unlawful conduct under this chapter,
             2676      does not constitute an adjudicative proceeding.
             2677          Section 35. Section 61-2e-201 , which is renumbered from Section 58-55-201 is
             2678      renumbered and amended to read:
             2679     
Part 2. Boards

             2680           [58-55-201].     61-2e-201. Boards created -- Duties.
             2681          (1) There is created a Plumbers Licensing Board, an Alarm System Security and
             2682      Licensing Board, and an Electricians Licensing Board. Members of the boards shall be
             2683      selected to provide representation as [follows] provided in this Subsection (1):
             2684          (a) The Plumbers Licensing Board consists of five members as follows:
             2685          (i) four members shall be licensed journeyman plumbers, of whom two shall be
             2686      licensed plumbing contractors; and
             2687          (ii) one member shall be from the public at large with no history of involvement in the
             2688      construction trades.
             2689          (b) (i) The Alarm System Security and Licensing Board consists of five members as
             2690      follows:
             2691          (A) three individuals who are officers or owners of a licensed alarm business;
             2692          (B) one individual from among nominees of the Utah Peace Officers Association; and
             2693          (C) one individual representing the general public.


             2694          (ii) The Alarm System Security and Licensing Board shall designate one of its
             2695      members on a permanent or rotating basis to:
             2696          (A) assist the division in reviewing complaints concerning the unlawful or
             2697      unprofessional conduct of a licensee; and
             2698          (B) advise the division in its investigation of [these] the complaints described in
             2699      Subsection (1)(b)(ii)(A).
             2700          (iii) A board member who has, under Subsection (3), reviewed a complaint or advised
             2701      in its investigation is disqualified from participating with the board when the board serves as a
             2702      presiding officer in an adjudicative proceeding concerning the complaint.
             2703          (c) The Electricians Licensing Board consists of five members as follows:
             2704          (i) two members shall be licensed from among the license classifications of master or
             2705      journeyman electrician, of whom:
             2706          (A) one shall represent a union organization; and
             2707          (B) one shall be selected having no union affiliation;
             2708          (ii) two shall be licensed electrical contractors of whom:
             2709          (A) one shall represent a union organization; and
             2710          (B) one shall be selected having no union affiliation; and
             2711          (iii) one member shall be from the public at large with no history of involvement in the
             2712      construction trades or union affiliation.
             2713          (2) (a) The executive director shall appoint the members of the boards created by this
             2714      section.
             2715          (b) In appointing these members the executive director shall give consideration to
             2716      recommendations by members of the respective occupations and professions and by their
             2717      organizations.
             2718          (c) The names of all persons appointed to boards shall be submitted to the governor for
             2719      confirmation or rejection. If an appointee is rejected by the governor, the executive director
             2720      shall appoint another person in the same manner as set forth in Subsection (2)(a).
             2721          (3) (a) Except as required by Subsection (3)(b), as terms of current board members
             2722      expire, the executive director shall appoint each new member or reappointed member to a
             2723      four-year term.
             2724          (b) Notwithstanding the requirements of Subsection (3)(a), the executive director shall,


             2725      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms
             2726      of board members are staggered so that approximately half of the board is appointed every two
             2727      years.
             2728          (c) A board member may not serve more than two consecutive terms, and a board
             2729      member who ceases to serve on a board may not serve again on that board until after the
             2730      expiration of a two-year period beginning from that cessation of service.
             2731          (d) (i) When a vacancy occurs in the membership for any reason, the replacement shall
             2732      be appointed for the unexpired term.
             2733          (ii) After filling that term, the replacement member may be appointed for only one
             2734      additional full term.
             2735          (e) If a board member fails or refuses to fulfill the responsibilities and duties of a board
             2736      member, including the attendance at board meetings, the executive director with the approval
             2737      of the board may remove the board member and replace the member in accordance with this
             2738      section.
             2739          [(2)] (4) The duties, functions, and responsibilities of each board include the following:
             2740          (a) recommending to the commission appropriate rules;
             2741          (b) recommending to the commission policy and budgetary matters;
             2742          (c) approving and establishing a passing score for applicant examinations;
             2743          (d) overseeing the screening of applicants for licensing, renewal, reinstatement, and
             2744      relicensure;
             2745          (e) assisting the commission in establishing standards of supervision for students or
             2746      persons in training to become qualified to obtain a license in the occupation or profession it
             2747      represents; and
             2748          (f) acting as presiding officer in conducting hearings associated with the adjudicative
             2749      proceedings and in issuing recommended orders when so authorized by the commission.
             2750          (5) A majority of the board members constitutes a quorum. A quorum is sufficient
             2751      authority for the board to act.
             2752          (6) (a) A member who is not a government employee shall receive no compensation or
             2753      benefits for the member's services, but may receive per diem and expenses incurred in the
             2754      performance of the member's official duties at the rates established by the Division of Finance
             2755      under Sections 63A-3-106 and 63A-3-107 .


             2756          (b) A member may decline to receive per diem and expenses for the member's service.
             2757          (7) Each board shall annually designate one of its members to serve as chair for a
             2758      one-year period.
             2759          (8) A board member may not be a member of the faculty of or have any financial
             2760      interest in any vocational or professional college or school which provides continuing
             2761      education to any licensee if that continuing education is required by statute or rule.
             2762          Section 36. Section 61-2e-301 , which is renumbered from Section 58-55-301 is
             2763      renumbered and amended to read:
             2764     
Part 3. Licensing

             2765           [58-55-301].     61-2e-301. License required -- License classifications --
             2766      Denial.
             2767          (1) (a) Any person engaged in the construction trades licensed under this chapter, as a
             2768      contractor regulated under this chapter, as an alarm business or company, or as an alarm
             2769      company agent, shall become licensed under this chapter before engaging in that trade or
             2770      contracting activity in this state unless specifically exempted from licensure under Section
             2771      [ 58-1-307 or 58-55-305 ] 61-2e-305 .
             2772          (b) The license issued under this chapter and the business license issued by the local
             2773      jurisdiction in which the licensee has its principal place of business shall be the only licenses
             2774      required for the licensee to engage in a trade licensed by this chapter, within the state.
             2775          (c) Neither the state nor any of its political subdivisions may require of a licensee any
             2776      additional business licenses, registrations, certifications, contributions, donations, or anything
             2777      else established for the purpose of qualifying a licensee under this chapter to do business in that
             2778      local jurisdiction, except for:
             2779          (i) contract prequalification procedures required by state agencies[,]; or
             2780          (ii) the payment of any fee for the license, registration, or certification established as a
             2781      condition to do business in that local jurisdiction.
             2782          (2) The division shall issue licenses under this chapter to qualified persons in the
             2783      following classifications:
             2784          (a) general engineering contractor;
             2785          (b) general building contractor;
             2786          (c) residential and small commercial contractor;


             2787          (d) specialty contractor;
             2788          (e) journeyman plumber;
             2789          (f) apprentice plumber;
             2790          (g) residential journeyman plumber;
             2791          (h) residential apprentice plumber;
             2792          (i) master electrician;
             2793          (j) residential master electrician;
             2794          (k) journeyman electrician;
             2795          (l) residential journeyman electrician;
             2796          (m) apprentice electrician;
             2797          (n) construction trades instructor:
             2798          (i) general engineering classification;
             2799          (ii) general building classification;
             2800          (iii) electrical classification;
             2801          (iv) plumbing classification; and
             2802          (v) mechanical classification;
             2803          (o) alarm company; and
             2804          (p) alarm company agent.
             2805          (3) An applicant may apply for a license in one or more classification or specialty
             2806      contractor subclassification. A license shall be granted in each classification or
             2807      subclassification for which the applicant qualifies. A separate application and fee must be
             2808      submitted for each license classification or subclassification.
             2809          (4) (a) Each license applicant shall apply to the division in writing upon forms
             2810      available from the division. Each completed application shall:
             2811          (i) contain documentation of the particular qualifications required of the applicant;
             2812          (ii) include the applicant's Social Security number;
             2813          (iii) be verified by the applicant; and
             2814          (iv) be accompanied by the appropriate fees.
             2815          (b) An applicant's Social Security number is a private record under Subsection
             2816      63-2-302 (1)(h).
             2817          (5) (a) A license shall be issued to an applicant who submits a complete application if


             2818      the division determines that the applicant meets the qualifications of licensure.
             2819          (b) A written notice of additional proceedings shall be provided to an applicant who
             2820      submits a complete application, but who has been, is, or will be placed under investigation by
             2821      the division for conduct directly bearing upon the applicant's qualifications for licensure, if the
             2822      outcome of additional proceedings is required to determine the division's response to the
             2823      application.
             2824          (c) A written notice of denial of licensure shall be provided to an applicant who
             2825      submits a complete application if the division determines that the applicant does not meet the
             2826      qualifications of licensure.
             2827          (d) A written notice of incomplete application and conditional denial of licensure shall
             2828      be provided to an applicant who submits an incomplete application. This notice shall advise
             2829      the applicant that the application
             2830          (i) is incomplete; and
             2831          (ii) is denied, unless the applicant:
             2832          (A) corrects the deficiencies within the time period specified in the notice; and
             2833          (B) otherwise meets all qualifications for licensure.
             2834          (6) Before any person is issued a license under this title, all requirements for that
             2835      license as established under this chapter and by rule shall be met.
             2836          (7) If all requirements are met for the specific license, the division shall issue the
             2837      license.
             2838          Section 37. Section 61-2e-302 , which is renumbered from Section 58-55-302 is
             2839      renumbered and amended to read:
             2840           [58-55-302].     61-2e-302. Qualifications for licensure.
             2841          (1) Each applicant for a license under this chapter shall:
             2842          (a) submit an application prescribed by the division;
             2843          (b) pay a fee as determined by the department under Section 63-38-3.2 ;
             2844          (c) (i) meet the examination requirements established by rule by the commission with
             2845      the concurrence of the director, except for the classifications of apprentice plumber, residential
             2846      apprentice plumber, and apprentice electrician for whom no examination is required; or
             2847          (ii) if required in Section [ 58-55-304 ] 61-2e-304 , the individual qualifier must pass the
             2848      required examination if the applicant is a business entity;


             2849          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
             2850          (e) if an applicant for a contractor's license:
             2851          (i) produce satisfactory evidence of financial responsibility, except for a construction
             2852      trades instructor for whom evidence of financial responsibility is not required;
             2853          (ii) produce satisfactory evidence of knowledge and experience in the construction
             2854      industry and knowledge of the principles of the conduct of business as a contractor, reasonably
             2855      necessary for the protection of the public health, safety, and welfare; and
             2856          (iii) (A) be a licensed master electrician if an applicant for an electrical contractor's
             2857      license; or
             2858          (B) a licensed master residential electrician if an applicant for a residential electrical
             2859      contractor's license; or
             2860          (iv) be a journeyman plumber or residential journeyman plumber if an applicant for a
             2861      plumbing contractor's license; and
             2862          (f) if an applicant for a construction trades instructor license, satisfy any additional
             2863      requirements established by rule.
             2864          (2) After approval of an applicant for a contractor's license by the applicable board and
             2865      the division, the applicant shall file the following with the division before the division issues
             2866      the license:
             2867          (a) proof of workers' compensation insurance which covers employees of the applicant
             2868      in accordance with applicable Utah law;
             2869          (b) proof of public liability insurance in coverage amounts and form established by rule
             2870      except for a construction trades instructor for whom public liability insurance is not required;
             2871      and
             2872          (c) proof of registration as required by applicable law with the:
             2873          (i) Utah Department of Commerce;
             2874          (ii) Division of Corporations and Commercial Code;
             2875          (iii) Division of Workforce Information and Payment Services in the Department of
             2876      Workforce Services, for purposes of Title 35A, Chapter 4, Employment Security Act;
             2877          (iv) State Tax Commission; and
             2878          (v) Internal Revenue Service.
             2879          (3) In addition to the general requirements for each applicant in Subsection (1),


             2880      applicants shall comply with the following requirements to be licensed in the [following]
             2881      classifications of this Subsection (3):
             2882          (a) A journeyman plumber applicant shall produce satisfactory evidence of:
             2883          (i) successful completion of the equivalent of at least four years of full-time training
             2884      and instruction as a licensed apprentice plumber under supervision of a licensed journeyman
             2885      plumber and in accordance with a planned program of training approved by the division;
             2886          (ii) at least eight years of full-time experience approved by the division in collaboration
             2887      with the Plumbers Licensing Board; or
             2888          (iii) satisfactory evidence of meeting the qualifications determined by the board to be
             2889      equivalent to Subsection (3)(a)(i) or (a)(ii).
             2890          (b) A residential journeyman plumber shall produce satisfactory evidence of:
             2891          (i) completion of the equivalent of at least three years of full-time training and
             2892      instruction as a licensed apprentice plumber under the supervision of a licensed residential
             2893      journeyman plumber or licensed journeyman plumber in accordance with a planned program of
             2894      training approved by the division;
             2895          (ii) completion of at least six years of full-time experience in a maintenance or repair
             2896      trade involving substantial plumbing work; or
             2897          (iii) meeting the qualifications determined by the board to be equivalent to Subsection
             2898      (3)(b)(i) or (b)(ii).
             2899          (c) (i) A master electrician applicant shall produce satisfactory evidence that the
             2900      applicant:
             2901          (A) (I) is a graduate electrical engineer of an accredited college or university approved
             2902      by the division; and
             2903          (II) has one year of practical electrical experience as a licensed apprentice electrician;
             2904          (B) (I) is a graduate of an electrical trade school, having received an associate of
             2905      applied sciences degree following successful completion of a course of study approved by the
             2906      division[,]; and
             2907          (II) has two years of practical experience as a licensed journeyman electrician;
             2908          (C) has four years of practical experience as a journeyman electrician; or
             2909          (D) meets the qualifications determined by the board to be equivalent to Subsection
             2910      (3)(c)(i)(A), (B), or (C).


             2911          (ii) (A) An individual holding a valid Utah license as a master electrician, based on at
             2912      least eight years of practical experience as a licensed apprentice under the supervision of a
             2913      licensed journeyman or master electrician, in effect immediately prior to May 3, 2004, is on
             2914      and after May 3, 2004, considered to hold a current license under this chapter and satisfies the
             2915      requirements of this Subsection (3)(c) for the purpose of renewal or reinstatement of that
             2916      license under Section [ 58-55-303 ] 61-2e-303 .
             2917          (B) An individual who has less than four years of practical experience as a licensed
             2918      apprentice under the supervision of a licensed journeyman or master electrician prior to May 3,
             2919      2004, shall complete the education requirements of Subsection (3)(c)(i)(A) or (B) to qualify for
             2920      licensing as a master electrician.
             2921          (C) An individual who has more than four but less than six years of practical
             2922      experience as a licensed apprentice under the supervision of a licensed journeyman or master
             2923      electrician prior to May 3, 2004, may satisfy the education requirements of Subsection
             2924      (3)(c)(i)(A) or (B) by successfully passing a competency placement test approved by the board
             2925      and administered at a Utah state institution of higher education.
             2926          (D) An individual who has more than six but less than eight years of practical
             2927      experience as a licensed apprentice under the supervision of a licensed journeyman or master
             2928      electrician prior to May 3, 2004, satisfies the education requirements of this Subsection (3)(c)
             2929      by completing the eight-year term of practical experience within a reasonable time frame
             2930      subsequent to May 3, 2004, as established by board rule in accordance with Title 63, Chapter
             2931      46a, Utah Administrative Rulemaking Act.
             2932          (d) A master residential electrician applicant shall produce satisfactory evidence that
             2933      the applicant:
             2934          (i) has at least two years of practical experience as a residential journeyman electrician;
             2935      or
             2936          (ii) meets the qualifications determined by the board to be equivalent to this practical
             2937      experience.
             2938          (e) (i) A journeyman electrician applicant shall produce satisfactory evidence that the
             2939      applicant:
             2940          (A) has successfully completed at least four years of full-time training and instruction
             2941      as a licensed apprentice electrician under the supervision of a master electrician or journeyman


             2942      electrician and in accordance with a planned training program approved by the division;
             2943          (B) has at least eight years of full-time experience approved by the division in
             2944      collaboration with the Electricians Licensing Board; or
             2945          (C) meets the qualifications determined by the board to be equivalent to Subsection
             2946      (3)(e)(i)(A) or (B).
             2947          (ii) An individual holding a valid Utah license as a journeyman electrician, based on at
             2948      least six years of full-time experience approved by the division in collaboration with the
             2949      Electricians Licensing Board in effect immediately prior to May 3, 2004, is on and after May 3,
             2950      2004, considered to hold a current license under this chapter and satisfies the requirements of
             2951      Subsection (3)(e)(i)(B) for the purpose of renewal or reinstatement of that license under
             2952      Section [ 58-55-303 ] 61-2e-303 .
             2953          (iii) An individual who has more than six but less than eight years of full-time
             2954      experience approved by the division in collaboration with the Electricians Licensing Board
             2955      prior to May 3, 2004, satisfies the requirements of Subsection (3)(e)(i) by completing the
             2956      eight-year term of practical experience within a reasonable time frame subsequent to May 3,
             2957      2004, as established by board rule made in accordance with Title 63, Chapter 46a, Utah
             2958      Administrative Rulemaking Act.
             2959          (f) A residential journeyman electrician applicant shall produce satisfactory evidence
             2960      that the applicant:
             2961          (i) has successfully completed two years of training in an electrical training program
             2962      approved by the division;
             2963          (ii) has four years of practical experience in wiring, installing, and repairing electrical
             2964      apparatus and equipment for light, heat, and power under the supervision of a licensed master,
             2965      journeyman, residential master, or residential journeyman electrician; or
             2966          (iii) meets the qualifications determined by the division and applicable board to be
             2967      equivalent to Subsection (3)(f)(i) or (ii).
             2968          (g) The conduct of licensed apprentice electricians and their licensed supervisors shall
             2969      be in accordance with the [following] requirements of this Subsection (3)(g):
             2970          (i) A licensed apprentice electrician shall be under the immediate supervision of a
             2971      licensed master, journeyman, residential master, or residential journeyman electrician. An
             2972      apprentice in the fourth year of training may work without supervision for a period not to


             2973      exceed eight hours in any 24-hour period.
             2974          (ii) A licensed master, journeyman, residential master, or residential journeyman
             2975      electrician may have under immediate supervision on a residential project up to three licensed
             2976      apprentice electricians.
             2977          (iii) A licensed master or journeyman electrician may have under immediate
             2978      supervision on nonresidential projects only one licensed apprentice electrician.
             2979          (h) An alarm company applicant shall:
             2980          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
             2981      the applicant who:
             2982          (A) demonstrates 6,000 hours of experience in the alarm company business;
             2983          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
             2984      company business or in a construction business; and
             2985          (C) passes an examination component established by rule by the commission with the
             2986      concurrence of the director;
             2987          (ii) if a corporation, provide:
             2988          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             2989      of all corporate officers, directors, and those responsible management personnel employed
             2990      within the state or having direct responsibility for managing operations of the applicant within
             2991      the state; and
             2992          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             2993      of all shareholders owning 5% or more of the outstanding shares of the corporation, except this
             2994      [shall not be] is not required if the stock is publicly listed and traded;
             2995          (iii) if a limited liability company, provide:
             2996          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             2997      of all company officers, and those responsible management personnel employed within the
             2998      state or having direct responsibility for managing operations of the applicant within the state;
             2999      and
             3000          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             3001      of all individuals owning 5% or more of the equity of the company;
             3002          (iv) if a partnership, the names, addresses, dates of birth, Social Security numbers, and
             3003      fingerprint cards of all general partners, and those responsible management personnel


             3004      employed within the state or having direct responsibility for managing operations of the
             3005      applicant within the state;
             3006          (v) if a proprietorship, the names, addresses, dates of birth, Social Security numbers,
             3007      and fingerprint cards of the proprietor, and those responsible management personnel employed
             3008      within the state or having direct responsibility for managing operations of the applicant within
             3009      the state;
             3010          (vi) be of good moral character in that officers, directors, shareholders described in
             3011      Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel have not
             3012      been convicted of a felony, a misdemeanor involving moral turpitude, or any other crime that
             3013      when considered with the duties and responsibilities of an alarm company is considered by the
             3014      board to indicate that the best interests of the public are served by granting the applicant a
             3015      license;
             3016          (vii) document that none of the applicant's officers, directors, shareholders described in
             3017      Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel have
             3018      been declared by any court of competent jurisdiction incompetent by reason of mental defect or
             3019      disease and not been restored;
             3020          (viii) document that none of the applicant's officers, directors, shareholders described
             3021      in Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel are
             3022      currently suffering from habitual drunkenness or from drug addiction or dependence;
             3023          (ix) file and maintain with the division evidence of:
             3024          (A) comprehensive general liability insurance in form and in amounts to be established
             3025      by rule by the commission with the concurrence of the director;
             3026          (B) workers' compensation insurance that covers employees of the applicant in
             3027      accordance with applicable Utah law; and
             3028          (C) registration as is required by applicable law with the:
             3029          (I) Division of Corporations and Commercial Code;
             3030          (II) Division of Workforce Information and Payment Services in the Department of
             3031      Workforce Services, for purposes of Title 35A, Chapter 4, Employment Security Act;
             3032          (III) State Tax Commission; and
             3033          (IV) Internal Revenue Service; and
             3034          (x) meet with the division and board.


             3035          (i) Each applicant for licensure as an alarm company agent shall:
             3036          (i) submit an application in a form prescribed by the division accompanied by
             3037      fingerprint cards;
             3038          (ii) pay a fee determined by the department under Section 63-38-3.2 ;
             3039          (iii) be of good moral character in that the applicant has not been convicted of a felony,
             3040      a misdemeanor involving moral turpitude, or any other crime that when considered with the
             3041      duties and responsibilities of an alarm company agent is considered by the board to indicate
             3042      that the best interests of the public are served by granting the applicant a license;
             3043          (iv) not have been declared by any court of competent jurisdiction incompetent by
             3044      reason of mental defect or disease and not been restored;
             3045          (v) not be currently suffering from habitual drunkenness or from drug addiction or
             3046      dependence; and
             3047          (vi) meet with the division and board if requested by the division or the board.
             3048          (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             3049      division may make rules establishing when Federal Bureau of Investigation records shall be
             3050      checked for applicants as an alarm company or alarm company agent.
             3051          (5) To determine if an applicant meets the qualifications of Subsections (3)(h)(vi) and
             3052      (3)(i)(iii), the division shall provide an appropriate number of copies of fingerprint cards to the
             3053      Department of Public Safety with the division's request to:
             3054          (a) conduct a search of records of the Department of Public Safety for criminal history
             3055      information relating to:
             3056          (i) each applicant for licensure as an alarm company or alarm company agent; and
             3057          (ii) each applicant's officers, directors, shareholders described in Subsection
             3058      (3)(h)(ii)(B), partners, proprietors, and responsible management personnel; and
             3059          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
             3060      requiring a check of records of the [F.B.I.] Federal Bureau of Investigation for criminal history
             3061      information under this section.
             3062          (6) The Department of Public Safety shall send to the division:
             3063          (a) a written record of criminal history, or certification of no criminal history record, as
             3064      contained in the records of the Department of Public Safety in a timely manner after receipt of
             3065      a fingerprint card from the division and a request for review of Department of Public Safety


             3066      records; and
             3067          (b) the results of the [F.B.I.] Federal Bureau of Investigation review concerning an
             3068      applicant in a timely manner after receipt of information from the [F.B.I.] Federal Bureau of
             3069      Investigation.
             3070          (7) (a) The division shall charge each applicant for licensure as an alarm company or
             3071      alarm company agent a fee, in accordance with Section 63-38-3.2 , equal to the cost of
             3072      performing the records reviews under this section.
             3073          (b) The division shall pay the Department of Public Safety the costs of all records
             3074      reviews, and the Department of Public Safety shall pay the [F.B.I.] Federal Bureau of
             3075      Investigation the costs of records reviews under this section.
             3076          (8) Information obtained by the division from the reviews of criminal history records of
             3077      the Department of Public Safety and the [F.B.I.] Federal Bureau of Investigation shall be used
             3078      or disseminated by the division only for the purpose of determining if an applicant for licensure
             3079      as an alarm company or alarm company agent is qualified for licensure.
             3080          (9) (a) An application for licensure under this chapter shall be denied if:
             3081          (i) the applicant has had a previous license, which was issued under this chapter,
             3082      suspended or revoked within one year prior to the date of the applicant's application;
             3083          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             3084          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             3085      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             3086      status, performing similar functions, or directly or indirectly controlling the applicant has
             3087      served in any similar capacity with any person or entity which has had a previous license,
             3088      which was issued under this chapter, suspended or revoked within one year prior to the date of
             3089      the applicant's application; or
             3090          (iii) (A) the applicant is an individual or sole proprietorship; and
             3091          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             3092      Subsection (9)(a)(ii)(B) in any entity which has had a previous license, which was issued under
             3093      this chapter, suspended or revoked within one year prior to the date of the applicant's
             3094      application.
             3095          (b) An application for licensure under this chapter shall be reviewed by the appropriate
             3096      licensing board prior to approval if:


             3097          (i) the applicant has had a previous license, which was issued under this chapter,
             3098      suspended or revoked more than one year prior to the date of the applicant's application;
             3099          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             3100          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             3101      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             3102      status, performing similar functions, or directly or indirectly controlling the applicant has
             3103      served in any similar capacity with any person or entity which has had a previous license,
             3104      which was issued under this chapter, suspended or revoked more than one year prior to the date
             3105      of the applicant's application; or
             3106          (iii) (A) the applicant is an individual or sole proprietorship; and
             3107          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             3108      Subsection (9)(b)(ii)(B) in any entity which has had a previous license, which was issued under
             3109      this chapter, suspended or revoked more than one year prior to the date of the applicant's
             3110      application.
             3111          Section 38. Section 61-2e-303 , which is renumbered from Section 58-55-303 is
             3112      renumbered and amended to read:
             3113           [58-55-303].     61-2e-303. Term of license -- Expiration -- Renewal --
             3114      Reinstatement.
             3115          (1) (a) Each license issued under this chapter shall be issued in accordance with a
             3116      two-year renewal cycle established by rule.
             3117          (b) The division may by rule extend or shorten a renewal period by as much as one year
             3118      to stagger the renewal cycle it administers.
             3119          (2) At the time of renewal, the licensee shall show satisfactory evidence of continuing
             3120      financial responsibility as required under Section [ 58-55-306 ] 61-2e-306 .
             3121          (3) (a) The expiration date of a license shall be shown on the license.
             3122          [(3)] (b) Each license automatically expires on the expiration date shown on the license
             3123      unless the licensee renews the license in accordance with [Section 58-1-308 ] this section.
             3124          (c) A license automatically expires before the expiration date shown on the license
             3125      upon the death of a licensee who is a natural person, or upon the dissolution of a licensee that is
             3126      a partnership, corporation, or other business entity.
             3127          (d) If the existence of a dissolved partnership, corporation, or other business entity is


             3128      reinstated prior to the expiration date shown upon the entity's expired license issued by the
             3129      division, the division shall, upon written application, reinstate the applicant's license, unless the
             3130      division finds that the applicant no longer meets the qualifications for licensure.
             3131          (e) Expiration of licensure is not an adjudicative proceeding under Title 63, Chapter
             3132      46b, Administrative Procedures Act.
             3133          (4) The requirements of Subsection [ 58-55-302 ] 61-2e-302 (9) shall also apply to
             3134      applicants seeking to renew or reinstate a license.
             3135          (5) In addition to any other requirements imposed by law, if a license has been
             3136      suspended or revoked for any reason, the applicant must:
             3137          (a) pay in full all fines imposed by the division[,];
             3138          (b) resolve any outstanding citations or disciplinary actions with the division[,];
             3139          (c) satisfy any Section [ 58-55-503 ] 61-2e-503 judgment and sentence or nontrial
             3140      resolution[,];
             3141          (d) complete a new financial responsibility review as required under Section
             3142      [ 58-55-306 ] 61-2e-306 , using only titled assets[,]; and
             3143          (e) pay in full any reimbursement amount as provided in Title 38, Chapter 11,
             3144      Residence Lien Restriction and Lien Recovery Fund Act.
             3145          (6) (a) The division shall notify each licensee in accordance with procedures
             3146      established by rule that the licensee's license is due for renewal and that unless an application
             3147      for renewal is received by the division by the expiration date shown on the license, together
             3148      with the appropriate renewal fee and documentation showing completion of or compliance with
             3149      renewal qualifications, the license will not be renewed.
             3150          (b) Examples of renewal qualifications that by statute or rule the division may require
             3151      the licensee to document completion of or compliance with include:
             3152          (i) continuing education;
             3153          (ii) continuing competency;
             3154          (iii) quality assurance;
             3155          (iv) utilization plan and protocol;
             3156          (v) financial responsibility;
             3157          (vi) certification renewal; and
             3158          (vii) calibration of equipment.


             3159          (7) (a) (i) An application for renewal that complies with Subsection (6) is complete.
             3160          (ii) A renewed license shall be issued to an applicant who submits a complete
             3161      application, unless it is apparent to the division that the applicant no longer meets the
             3162      qualifications for continued licensure.
             3163          (b) (i) The division may evaluate or verify documentation showing completion of or
             3164      compliance with renewal requirements on an entire population or a random sample basis, and
             3165      may be assisted by advisory peer committees.
             3166          (ii) If necessary, the division may complete its evaluation or verification subsequent to
             3167      renewal and, if appropriate, pursue action to suspend or revoke the license of a licensee who no
             3168      longer meets the qualifications for continued licensure.
             3169          (c) The application procedures specified in Subsection 61-2e-301 (5), apply to renewal
             3170      applications to the extent they are not in conflict with this section.
             3171          (8) (a) Any license that is not renewed may be reinstated at any time within two years
             3172      after nonrenewal upon:
             3173          (i) submission of an application for reinstatement;
             3174          (ii) payment of the renewal fee together with a reinstatement fee determined by the
             3175      division under Section 63-38-3.2 ; and
             3176          (iii) submission of documentation showing completion of or compliance with renewal
             3177      qualifications.
             3178          (b) The application procedures specified in Subsection 61-2e-301 (5) apply to the
             3179      reinstatement applications to the extent they are not in conflict with this section.
             3180          (c) Except as otherwise provided by rule, a license that is reinstated no later than 120
             3181      days after it expires shall be retroactively reinstated to the date it expired.
             3182          (9) (a) If not reinstated within two years, the holder may obtain a license only if the
             3183      holder meets requirements provided by the division by rule or by statute for a new license.
             3184          (b) Each licensee under this chapter who has been active in the licensed occupation or
             3185      profession while in the full-time employ of the United States government or under license to
             3186      practice that occupation or profession in any other state or territory of the United States may
             3187      reinstate the licensee's license without taking an examination by:
             3188          (i) submitting an application for reinstatement;
             3189          (ii) paying the current annual renewal fee and the reinstatement fee; and


             3190          (iii) submitting documentation showing completion of or compliance with any renewal
             3191      qualifications at any time within six months after reestablishing domicile within Utah or
             3192      terminating full-time government service.
             3193          Section 39. Section 61-2e-304 , which is renumbered from Section 58-55-304 is
             3194      renumbered and amended to read:
             3195           [58-55-304].     61-2e-304. Licensee names -- License number use -- License
             3196      qualifier.
             3197          (1) [No] A license may not be issued by the division in a name that is identical to or so
             3198      resembles the name of another licensee that the division determines that it may result in
             3199      confusion or mistake.
             3200          (2) The contractor's license number shall be made a part of all permit applications,
             3201      contracts, agreements, or bids when a license is required.
             3202          (3) The division may issue a license in the name of an individual or the name of a
             3203      business entity for which the individual acts as a qualifier, in accordance with [the following:]
             3204      this Subsection (3).
             3205          (a) An individual shall:
             3206          (i) submit an application in the individual's name;
             3207          (ii) demonstrate the individual's own financial responsibility; and
             3208          (iii) pass the required examination and meet all other requirements of this chapter.
             3209          (b) A business entity shall:
             3210          (i) submit the application in the name of and on behalf of the business entity;
             3211          (ii) list the individual as the qualifier;
             3212          (iii) demonstrate financial responsibility of the business entity if applying for a
             3213      contractor's license;
             3214          (iv) provide evidence that the individual qualifier has passed the required examination;
             3215      and
             3216          (v) meet all other requirements of this chapter.
             3217          (4) A person acting as a qualifier for a business entity licensee must demonstrate to the
             3218      division that the individual is an owner, officer, or manager within that business entity who
             3219      exercises material authority in the conduct of that business entity's contracting business by:
             3220          (a) making substantive technical and administrative decisions relating to the work


             3221      performed for which a license is required under this chapter;
             3222          (b) hiring, promoting, transferring, laying off, disciplining, directing, or discharging
             3223      employees of the licensee either by himself or through others; and
             3224          (c) not being involved in any other employment or activity which conflicts with the
             3225      individual's duties and responsibilities to ensure the licensee's performance of work regulated
             3226      under this chapter does not jeopardize the public health, safety, and welfare.
             3227          (5) (a) Except as provided in Subsections (5)(b) and (c), it is the duty and responsibility
             3228      of the licensee and the qualifier to comply with the provisions of this section. Failure to
             3229      comply with the requirements of this section may be considered unprofessional conduct by the
             3230      licensee, the qualifier, or both.
             3231          (b) (i) If a licensee business entity has maintained its license and has not violated the
             3232      requirements of this chapter [or Sections 58-55-101 through 58-55-604 ] for a period of ten
             3233      consecutive years, the business entity may maintain its license under this chapter by recording
             3234      an active employee name and registration/license number from the applicable trade on the
             3235      renewal application in order to comply with the individual qualifier requirements of this
             3236      section. [However, this]
             3237          (ii) This Subsection (5)(b) [shall] does not apply if more than 50% of the ownership of
             3238      the business entity has been transferred at any time during the ten-year period.
             3239          (c) (i) If a plumbing or electrical business entity has maintained its license and has not
             3240      violated the requirements of this chapter [or Sections 58-55-101 through 58-55-604 ] for a
             3241      period of five consecutive years, the business entity may maintain its license under this chapter
             3242      by recording an active employee name and registration/license number from the applicable
             3243      trade on the renewal application in order to comply with the individual qualifier requirements
             3244      of this section. [However, this]
             3245          (ii) This Subsection (5)(c) [shall] does not apply if more than 50% of the ownership of
             3246      the business entity has been transferred at any time during the five-year period.
             3247          (6) If an individual qualifying on behalf of a business entity issued a license under this
             3248      chapter ceases association with that entity as required in Subsection (4), the licensee shall
             3249      notify the division in writing within ten days after cessation of association or employment. If
             3250      notice is given, the license shall remain in force for 60 days after the date of cessation of
             3251      association or employment. The licensee shall replace the original qualifier with another


             3252      individual qualifier within the 60-day period or the license shall be automatically suspended.
             3253          (7) Failure to notify the division of cessation of association or employment of a
             3254      qualifier as required in Subsection (6) may result in immediate suspension of the license upon a
             3255      finding of good cause.
             3256          Section 40. Section 61-2e-305 , which is renumbered from Section 58-55-305 is
             3257      renumbered and amended to read:
             3258           [58-55-305].     61-2e-305. Exemptions from licensure.
             3259          (1) [In addition to the exemptions from licensure in Section 58-1-307 , the] Except as
             3260      otherwise provided by rule for Subsections (1)(q) through (w), the following persons may
             3261      engage in acts or practices included within the practice of construction trades, subject to the
             3262      stated circumstances and limitations, without being licensed under this chapter:
             3263          (a) an authorized representative of the United States government or an authorized
             3264      employee of the state or any of its political subdivisions when working on construction work of
             3265      the state or the subdivision, and when acting within the terms of the person's trust, office, or
             3266      employment;
             3267          (b) a person engaged in construction or operation incidental to the construction and
             3268      repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
             3269      districts, and drainage districts or construction and repair relating to farming, dairying,
             3270      agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
             3271      excavations, well drilling, as defined in Subsection 73-3-24 (3), hauling to and from
             3272      construction sites, and lumbering;
             3273          (c) public utilities operating under the rules of the Public Service Commission on
             3274      construction work incidental to their own business;
             3275          (d) sole owners of property engaged in building:
             3276          (i) no more than one residential structure per year and no more than three residential
             3277      structures per five years on their property for their own noncommercial, nonpublic use; except,
             3278      a person other than the property owner or individuals described in Subsection (1)(e), who
             3279      engages in building the structure must be licensed under this chapter if the person is otherwise
             3280      required to be licensed under this chapter; or
             3281          (ii) structures on their property for their own noncommercial, nonpublic use which are
             3282      incidental to a residential structure on the property, including sheds, carports, or detached


             3283      garages;
             3284          (e) (i) a person engaged in construction or renovation of a residential building for
             3285      noncommercial, nonpublic use if that person:
             3286          (A) works without compensation other than token compensation that is not considered
             3287      salary or wages; and
             3288          (B) works under the direction of the property owner who engages in building the
             3289      structure;
             3290          (ii) for purposes of this Subsection (1)(e), "token compensation" means compensation
             3291      paid by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
             3292      exempted from licensure under this Subsection (1)(e), that is:
             3293          (A) minimal in value when compared with the fair market value of the services
             3294      provided by the person;
             3295          (B) not related to the fair market value of the services provided by the person; and
             3296          (C) is incidental to providing of services by the person including paying for or
             3297      providing meals or refreshment while services are being provided, or paying reasonable
             3298      transportation costs incurred by the person in travel to the site of construction;
             3299          (f) a person engaged in the sale or merchandising of personal property that by its design
             3300      or manufacture may be attached, installed, or otherwise affixed to real property who has
             3301      contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
             3302      attach that property;
             3303          (g) a contractor submitting a bid on a federal aid highway project, if, before
             3304      undertaking construction under that bid, the contractor is licensed under this chapter;
             3305          (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
             3306      improvement of a building with a contracted or agreed value of less than $1,000, including
             3307      both labor and materials, and including all changes or additions to the contracted or agreed
             3308      upon work;
             3309          (ii) notwithstanding Subsection (1)(h)(i):
             3310          (A) work in the plumbing and electrical trades must be performed by a licensed
             3311      electrician or plumber except as otherwise provided in this section; and
             3312          (B) installation, repair, or replacement of a residential or commercial gas appliance or a
             3313      combustion system must be performed by a person who has received certification under


             3314      Subsection [ 58-55-308 ] 61-2e-308 (2) except as otherwise provided in Subsection [ 58-55-308 ]
             3315      61-2e-308 (2)(d) or [ 58-55-308 ] (3);
             3316          (i) a person practicing a specialty contractor classification or construction trade which
             3317      is not classified by rule by the director as significantly impacting the public's health, safety, and
             3318      welfare;
             3319          (j) owners and lessees of property and persons regularly employed for wages by owners
             3320      or lessees of property or their agents for the purpose of maintaining the property, are exempt
             3321      from this chapter when doing work upon the property;
             3322          (k) (i) a person engaged in minor plumbing work incidental to the replacement or
             3323      repair of a fixture or an appliance in a residential or small commercial building, or structure
             3324      used for agricultural use, as defined in Section [ 58-56-4 ] 61-2f-201 , provided that no
             3325      modification is made to:
             3326          (A) existing culinary water, soil, waste, or vent piping; or
             3327          (B) a gas appliance or combustion system;
             3328          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
             3329      an appliance is not included in the exemption provided under Subsection (1)(k)(i);
             3330          (l) a person who ordinarily would be subject to the plumber licensure requirements
             3331      under this chapter when installing or repairing a water conditioner or other water treatment
             3332      apparatus if the conditioner or apparatus:
             3333          (i) meets the appropriate state construction codes or local plumbing standards; and
             3334          (ii) is installed or repaired under the direction of a person authorized to do the work
             3335      under an appropriate specialty contractor license;
             3336          (m) a person who ordinarily would be subject to the electrician licensure requirements
             3337      under this chapter when employed by or under contract with:
             3338          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
             3339      contractors or constructors, or street railway systems; or
             3340          (ii) public service corporations, rural electrification associations, or municipal utilities
             3341      who generate, distribute, or sell electrical energy for light, heat, or power;
             3342          (n) a person involved in minor electrical work incidental to a mechanical or service
             3343      installation;
             3344          (o) a student participating in construction trade education and training programs


             3345      approved by the commission with the concurrence of the director under the condition that:
             3346          (i) all work intended as a part of a finished product on which there would normally be
             3347      an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
             3348      building inspector; and
             3349          (ii) a licensed contractor obtains the necessary building permits; [and]
             3350          (p) a delivery person when replacing any of the following existing equipment with a
             3351      new gas appliance, provided there is an existing gas shutoff valve at the appliance:
             3352          (i) gas range;
             3353          (ii) gas dryer;
             3354          (iii) outdoor gas barbeque; or
             3355          (iv) outdoor gas patio heater[.];
             3356          (q) a person serving in the armed forces of the United States, the United States Public
             3357      Health Service, the United States Department of Veterans Affairs, or other federal agencies
             3358      while engaged in activities regulated under this chapter as a part of employment with that
             3359      federal agency if the person holds a valid license to practice a regulated occupation or
             3360      profession issued by any other state or jurisdiction recognized by the division;
             3361          (r) a student engaged in activities constituting the practice of a regulated occupation or
             3362      profession while in training in a recognized school approved by the division to the extent the
             3363      activities are supervised by qualified faculty, staff, or designee and the activities are a defined
             3364      part of the training program;
             3365          (s) an individual engaged in an internship, residency, preceptorship, postceptorship,
             3366      fellowship, apprenticeship, or on-the-job training program approved by the division while
             3367      under the supervision of qualified persons;
             3368          (t) an individual residing in another state and licensed to practice a regulated
             3369      occupation or profession in that state, who is called in for a consultation by an individual
             3370      licensed in this state, and the services provided are limited to that consultation;
             3371          (u) an individual who is invited by a recognized school, association, society, or other
             3372      body approved by the division to conduct a lecture, clinic, or demonstration of the practice of a
             3373      regulated occupation or profession if the individual does not establish a place of business or
             3374      regularly engage in the practice of the regulated occupation or profession in this state;
             3375          (v) an individual licensed under the laws of this state, other than under this title, to


             3376      practice or engage in an occupation or profession, while engaged in the lawful, professional,
             3377      and competent practice of that occupation or profession; and
             3378          (w) an individual licensed and in good standing in another state, who is in this state:
             3379          (i) temporarily, under the invitation and control of a sponsoring entity;
             3380          (ii) for a reason associated with a special purpose event, based upon needs that may
             3381      exceed the ability of this state to address through its licensees, as determined by the division;
             3382      and
             3383          (iii) for a limited period of time not to exceed the duration of that event, together with
             3384      any necessary preparatory and conclusionary periods.
             3385          (2) (a) A compliance agency as defined in Subsection [ 58-56-3 (4)] 61-2f-103 (5) that
             3386      issues a building permit to any person requesting a building permit as a sole owner of property
             3387      referred to in Subsection (1)(d) shall notify the division, in writing or through electronic
             3388      transmission, of the issuance of the building permit.
             3389          (b) The division shall evaluate the effectiveness of the notification requirement under
             3390      Subsection (2)(a) and report its findings, including any recommendations for modification to or
             3391      termination of the requirement, to the Legislature's Business and Labor Interim Committee
             3392      prior to the 2008 General Session.
             3393          (3) A practitioner temporarily in this state who is exempted from licensure under
             3394      Subsection (1) shall comply with each requirement of the licensing jurisdiction from which the
             3395      practitioner derives authority to practice. Violation of any limitation imposed by this section
             3396      constitutes grounds for removal of exempt status, denial of license, or other disciplinary
             3397      proceedings.
             3398          Section 41. Section 61-2e-306 , which is renumbered from Section 58-55-306 is
             3399      renumbered and amended to read:
             3400           [58-55-306].     61-2e-306. Financial responsibility.
             3401          (1) An applicant for licensure as a contractor, and a licensee applying for renewal or
             3402      reinstatement of a contractor's license shall demonstrate to the division and the commission the
             3403      applicant's or licensee's financial responsibility before the issuance of or the renewal or
             3404      reinstatement of a license by:
             3405          (a) (i) completing a questionnaire developed by the division; and
             3406          (ii) signing the questionnaire, certifying that the information provided is true and


             3407      accurate; or
             3408          (b) submitting a bond in an amount and form determined by the commission with the
             3409      concurrence of the director.
             3410          (2) The division may audit an applicant's or licensee's demonstration of financial
             3411      responsibility on a random basis or upon finding of a reasonable need.
             3412          (3) The burden to demonstrate financial responsibility is upon the applicant or licensee.
             3413          Section 42. Section 61-2e-307 , which is renumbered from Section 58-55-307 is
             3414      renumbered and amended to read:
             3415           [58-55-307].     61-2e-307. Confidentiality of records and reports.
             3416          (1) [Credit reports] A credit report, financial [statements] statement, and other
             3417      information submitted to the division by or at the request and direction of an applicant or
             3418      licensee for the purpose of supporting a representation of financial responsibility constitute
             3419      protected records under Title 63, Chapter 2, Government Records Access and Management
             3420      Act.
             3421          (2) Notwithstanding Title 63, Chapter 2, Government Records Access and
             3422      Management Act, [the records] a record described in Subsection (1) [are] is not:
             3423          (a) open for public inspection; and [are not]
             3424          (b) subject to discovery in civil or administrative proceedings.
             3425          Section 43. Section 61-2e-308 , which is renumbered from Section 58-55-308 is
             3426      renumbered and amended to read:
             3427           [58-55-308].     61-2e-308. Scope of practice -- Installation, repair, or
             3428      replacement of gas appliance or combustion system -- Rules.
             3429          (1) (a) The commission, with the concurrence of the director, may adopt reasonable
             3430      rules pursuant to Title 63, Chapter 46a, Utah Administrative Rulemaking Act, to define and
             3431      limit the scope of practice and operating standards of the classifications and subclassifications
             3432      licensed under this chapter in a manner consistent with established practice in the relevant
             3433      industry.
             3434          (b) The commission and the director may limit the field and scope of operations of a
             3435      licensee under this chapter in accordance with the rules and the public health, safety, and
             3436      welfare, based on the licensee's education, training, experience, knowledge, and financial
             3437      responsibility.


             3438          (2) (a) The work and scope of practice covered by this Subsection (2) is the
             3439      installation, repair, or replacement of a residential or commercial gas appliance or combustion
             3440      system.
             3441          (b) The provisions of this Subsection (2) apply to any:
             3442          (i) licensee under this chapter whose license authorizes the licensee to perform the
             3443      work described in Subsection (2)(a); and
             3444          (ii) person exempt from licensure under Subsection [ 58-55-305 ] 61-2e-305 (1)(h).
             3445          (c) Any person described in Subsection (2)(b) that performs work described in
             3446      Subsection (2)(a):
             3447          (i) must first receive training and certification as specified in rules adopted by the
             3448      division; and
             3449          (ii) shall ensure that any employee authorized under other provisions of this chapter to
             3450      perform work described in Subsection (2)(a) has first received training and certification as
             3451      specified in rules adopted by the division.
             3452          (d) The division may exempt from the training requirements adopted under Subsection
             3453      (2)(c) a person that has adequate experience, as determined by the division.
             3454          (3) The division may exempt the following individuals from the certification
             3455      requirements adopted under Subsection (2)(c):
             3456          (a) a person who has:
             3457          (i) passed a test equivalent to the level of testing required by the division for
             3458      certification[,]; or [has]
             3459          (ii) completed an apprenticeship program that:
             3460          (A) teaches the installation of gas line appliances; and
             3461          (B) is approved by the Federal Bureau of Apprenticeship Training; and
             3462          (b) a person working under the immediate one-to-one supervision of a certified natural
             3463      gas technician or a person exempt from certification.
             3464          (4) This section does not prohibit a licensed specialty contractor from accepting and
             3465      entering into a contract involving the use of two or more crafts or trades if the performance of
             3466      the work in the crafts or trades, other than that in which the contractor is licensed, is incidental
             3467      and supplemental to the work for which the contractor is licensed.
             3468          Section 44. Section 61-2e-309 , which is renumbered from Section 58-55-310 is


             3469      renumbered and amended to read:
             3470           [58-55-310].     61-2e-309. Requirements when working for political
             3471      subdivision or state agency.
             3472          Each political subdivision and agency of the state and each board of education [which]
             3473      that requires the issuance of a permit or license as a precondition to the construction, alteration,
             3474      improvement, demolition, or other repairs for which a contractor's license is also required
             3475      under this chapter shall:
             3476          (1) require that each applicant for a permit or license file a signed statement that the
             3477      applicant has a current contractor's license with the license number included in the application;
             3478          (2) require that any representation of exemption from the contractor's licensing law be
             3479      included in the signed statement and that if that exempt person, firm, corporation, association,
             3480      or other organization intends to hire a contractor to perform any work under the permit or
             3481      license, that the license number of that contractor be included in the application, but if a
             3482      contractor has not been selected at the time of the application for a permit or license, the permit
             3483      or license shall be issued only on the condition that a currently licensed contractor will be
             3484      selected and that the license number of the contractor will be given to the issuing public body
             3485      and displayed on the permit or license; and
             3486          (3) upon issuance of a permit or license affix the contractor's license number to that
             3487      permit or license for public display.
             3488          Section 45. Section 61-2e-310 , which is renumbered from Section 58-55-311 is
             3489      renumbered and amended to read:
             3490           [58-55-311].     61-2e-310. Evidence of licensure as alarm company agent.
             3491          An individual licensed as an alarm company agent shall:
             3492          (1) carry a copy of the individual's license on the individual's person at all times while
             3493      acting as a licensee; and
             3494          (2) display the license upon the request of:
             3495          (a) a peace officer[,];
             3496          (b) a representative of the division[,]; or
             3497          (c) a representative of a customer of the alarm company.
             3498          Section 46. Section 61-2e-311 , which is renumbered from Section 58-55-312 is
             3499      renumbered and amended to read:


             3500           [58-55-312].     61-2e-311. Interim permits for alarm company agent.
             3501          (1) Upon receipt of a complete application for licensure in accordance with Section
             3502      [ 58-55-302 ] 61-2e-302 , an applicant for licensure as an alarm company agent may be issued an
             3503      interim permit.
             3504          (2) (a) Each interim permit shall expire the earlier of:
             3505          (i) 90 days after it is issued; or
             3506          (ii) on the date on which the applicant is issued a license[, whichever is earlier].
             3507          (b) The division may reissue an interim permit if the delay in approving a license is
             3508      beyond the control or influence of the interim permit holder.
             3509          (3) An interim permit holder may engage in the scope of an alarm company agent.
             3510          Section 47. Section 61-2e-312 is enacted to read:
             3511          61-2e-312. Division access to Bureau of Criminal Identification records.
             3512          (1) The division shall have direct access to criminal background information
             3513      maintained by the Bureau of Criminal Identification under Title 53, Chapter 10, Part 2, Bureau
             3514      of Criminal Identification, for background screening of licensure applicants as required in
             3515      Section 61-2e-302 as it applies to alarm companies and alarm company agents.
             3516          (2) The division access under Subsection (1) shall be in accordance with Section
             3517      53-10-108 .
             3518          Section 48. Section 61-2e-313 is enacted to read:
             3519          61-2e-313. License by endorsement.
             3520          (1) The division may issue a license without examination to a person who has been
             3521      licensed in any state, district, or territory of the United States or in any foreign country, whose
             3522      education, experience, and examination requirements are, or were at the time the license was
             3523      issued, equal to those of this state.
             3524          (2) Before any person may be issued a license under this section, that person shall
             3525      produce satisfactory evidence of the person's qualifications, identity, and good standing in the
             3526      person's occupation or profession.
             3527          Section 49. Section 61-2e-314 is enacted to read:
             3528          61-2e-314. Temporary license.
             3529          (1) (a) The division may issue a temporary license to a person who has met all license
             3530      requirements except the passing of an examination. In this case:


             3531          (i) the licensee shall take the next available examination; and
             3532          (ii) the temporary license automatically expires upon release of official examination
             3533      results if the applicant fails the examination.
             3534          (b) The division may issue a temporary license to a person licensed in another state or
             3535      country who is in Utah temporarily to teach or assist a Utah resident licensed to practice an
             3536      occupation or profession under this title.
             3537          (c) The division may issue a temporary license to a person licensed in another state
             3538      who met the requirements for licensure in that state, which were equal to or greater than the
             3539      requirements for licensure of this state at the time the license was obtained in the other state,
             3540      upon a finding by the division, in collaboration with the appropriate board, that the issuance of
             3541      a temporary license is necessary to or justified by:
             3542          (i) a local or national emergency or any governmental action causing an unusual
             3543      circumstance that might be reasonably considered to materially jeopardize the public health,
             3544      safety, or welfare if a temporary license is not issued;
             3545          (ii) a lack of necessary available services in any community or area of the state from an
             3546      occupation or profession licensed under this title, if the lack of services might be reasonably
             3547      considered to materially jeopardize the public health, safety, or welfare if a temporary license is
             3548      not issued; or
             3549          (iii) a need to first observe an applicant for licensure in this state in a monitored or
             3550      supervised practice of the applicant's occupation or profession before a decision is made by the
             3551      division either to grant or deny the applicant a regular license.
             3552          (2) The division may not issue a temporary license to a person who qualifies for one
             3553      under Subsection (1)(a) more than three consecutive times within the three-year period
             3554      immediately following the issuance of the first temporary license.
             3555          (3) The division may not issue a temporary license to a person solely because there is a
             3556      competitive advantage enjoyed or a competitive disadvantage suffered by any party caused by
             3557      the absence of a licensed person, unless in addition there is or will be a material risk presented
             3558      to the public health, safety, or welfare.
             3559          Section 50. Section 61-2e-315 is enacted to read:
             3560          61-2e-315. Restricted license.
             3561          (1) The division may issue a restricted license to an applicant for licensure, renewal, or


             3562      reinstatement of licensure if:
             3563          (a) the applicant appears to meet the qualifications for licensure, but has engaged in
             3564      unlawful, unprofessional, or other conduct bearing upon the applicant's qualifications; and
             3565          (b) the division determines the need to observe the applicant in a monitored or
             3566      supervised practice of the applicant's occupation or profession or to attach other reasonable
             3567      restrictions upon the applicant in order to accommodate licensure, while protecting the public
             3568      health, safety, and welfare.
             3569          (2) Issuance of a restricted license is considered a partial denial of licensure that is
             3570      subject to agency review.
             3571          Section 51. Section 61-2e-316 is enacted to read:
             3572          61-2e-316. Inactive license.
             3573          (1) (a) The commission with the concurrence of the director may adopt rules permitting
             3574      inactive licensure.
             3575          (b) The rules allowed under this Subsection (1) shall specify:
             3576          (i) the requirements and procedures for placing a license on inactive status;
             3577          (ii) the length of time a license may remain on inactive status; and
             3578          (iii) the requirements and procedures to activate an inactive license.
             3579          (2) Except as otherwise specified by rule, an inactive licensee has no right or privilege
             3580      to engage in the practice of the licensed occupation or profession.
             3581          Section 52. Section 61-2e-317 is enacted to read:
             3582          61-2e-317. Surrender of license.
             3583          (1) The division may, by written agreement, accept the voluntary surrender of a license.
             3584          (2) Unless otherwise stated in the written agreement, tender and acceptance of a
             3585      voluntary surrender of a license does not foreclose the division from pursuing additional
             3586      disciplinary or other action authorized under this chapter or in rules adopted under this chapter.
             3587          (3) Unless otherwise stated in the written agreement, tender and acceptance of a
             3588      voluntary surrender of a license terminates all rights and privileges associated with the license.
             3589          (4) Unless otherwise stated in the written agreement, the surrendered rights and
             3590      privileges of licensure may be reacquired only by reapplying for licensure and meeting the
             3591      requirements for a new or reinstated license set forth under this chapter or in rules adopted
             3592      under this chapter.


             3593          (5) Unless otherwise stated in the written agreement, documentation of tender and
             3594      acceptance of a voluntary surrender of a license is a public record.
             3595          (6) Unless otherwise stated in the written agreement, when a tender and acceptance of a
             3596      voluntary surrender of a license occurs while adjudicative proceedings are pending against the
             3597      licensee for unprofessional or unlawful conduct, the division may report the surrender of
             3598      license to appropriate state and federal agencies and licensing data banks.
             3599          Section 53. Section 61-2e-401 , which is renumbered from Section 58-55-401 is
             3600      renumbered and amended to read:
             3601     
Part 4. License Denial and Discipline

             3602           [58-55-401].     61-2e-401. Grounds for denial of license and disciplinary
             3603      proceedings.
             3604          [The] (1) In accordance with this section, the division may:
             3605          (a) refuse to issue a license to an applicant;
             3606          (b) refuse to renew the license of a licensee;
             3607          (c) revoke the right of a licensee to recover from the Residence Lien Recovery Fund
             3608      created by Section 38-11-201 ;
             3609          (d) revoke, suspend, restrict, or place on probation the license of a licensee;
             3610          (e) issue a public or private reprimand to a licensee; and
             3611          (f) issue a cease and desist orders order[, in accordance with Section 58-1-401 ].
             3612          (2) If a licensee does not meet the qualifications for licensure under this chapter, the
             3613      division shall:
             3614          (a) refuse to issue a license to an applicant;
             3615          (b) refuse to renew a license;
             3616          (c) revoke, suspend, restrict, place on probation the license of a licensee; or
             3617          (d) otherwise act upon the license.
             3618          (3) The division may take an action described in Subsection (1) when a person violates
             3619      this chapter including in any of the following cases:
             3620          (a) the applicant or licensee has engaged in unprofessional conduct, as defined by
             3621      Section 61-2e-502 or rule under this chapter;
             3622          (b) the applicant or licensee has engaged in unlawful conduct as defined by Section
             3623      61-2e-501 ;


             3624          (c) the applicant or licensee has been determined to be mentally incompetent for any
             3625      reason by a court of competent jurisdiction; or
             3626          (d) the applicant or licensee is unable to practice the occupation or profession with
             3627      reasonable skill and safety because of:
             3628          (i) illness;
             3629          (ii) drunkenness;
             3630          (iii) excessive use of drugs, narcotics, chemicals, or any other type of material; or
             3631          (iv) any other mental or physical condition, when the licensee's condition demonstrates
             3632      a threat or potential threat to the public health, safety, or welfare.
             3633          (4) Any licensee whose license to practice an occupation or profession regulated by
             3634      this chapter has been suspended, revoked, or restricted may apply for reinstatement of the
             3635      license at reasonable intervals and upon compliance with any conditions imposed upon the
             3636      licensee by statute, rule, or terms of the license suspension, revocation, or restriction.
             3637          (5) The division may issue cease and desist orders:
             3638          (a) to a licensee or applicant who may be disciplined under Subsection (2) or (3);
             3639          (b) to any person who engages in or represents himself to be engaged in an occupation
             3640      or profession regulated under this chapter; and
             3641          (c) to any person who otherwise violates this chapter or any rules adopted under this
             3642      chapter.
             3643          (6) (a) The division may not take disciplinary action against any person for
             3644      unprofessional or unlawful conduct under this chapter, unless the division initiates an
             3645      adjudicative proceeding regarding the conduct within four years after the conduct is reported to
             3646      the division, except under Subsection (6)(b).
             3647          (b) The division may not take disciplinary action against any person for unprofessional
             3648      or unlawful conduct more than ten years after the occurrence of the conduct, unless the
             3649      proceeding is in response to a civil or criminal judgment or settlement and the proceeding is
             3650      initiated within one year following the judgment or settlement.
             3651          Section 54. Section 61-2e-402 , which is renumbered from Section 58-55-402 is
             3652      renumbered and amended to read:
             3653           [58-55-402].     61-2e-402. Enforcement -- Investigation of regulated activity.
             3654          (1) (a) The division [shall be responsible for the investigation of persons and activities


             3655      in violation of the provisions of this chapter] and, to the extent provided in this section, the
             3656      building inspectors with whom the division has contracted under Subsection (1)(b) shall
             3657      enforce this chapter.
             3658          (b) In accordance with Section 61-2e-503 , the following may issue a citation and assess
             3659      a fine to a person who violates this chapter:
             3660          (i) the division; or
             3661          (ii) a building inspector.
             3662          (c) The division shall:
             3663          (i) in accordance with Section 61-2e-503 , enforce a citation issued under this section
             3664      unless the conditions of Subsection (3) are met; and
             3665          (ii) collect any fine assessed under this section.
             3666          (2) [Investigation by the] The division shall [include] hire one or more investigators to
             3667      investigate persons and activities in violation of this chapter including investigations of:
             3668          (a) licensees engaged in unlawful or unprofessional conduct; and
             3669          (b) unlicensed persons engaged in the conduct of activity or work regulated under this
             3670      chapter and for which a license is required.
             3671          (3) The division shall decline to proceed with investigation of the violation of any
             3672      provisions of this chapter if the division finds there is no apparent material jeopardy to the
             3673      public health, safety, and welfare.
             3674          (4) The division shall have no responsibility for the inspection of construction work
             3675      performed in the state to determine compliance with applicable codes, or industry and
             3676      workmanship standards, except as provided in Subsections [ 58-1-501 (2)(g), 58-55-502 ]
             3677      61-2e-501 (16), and 61-2e-502 (2), (3), [and] (4), and [ 58-55-501 (16)] (14).
             3678          (5) [Authorized representatives] An authorized representative of the division, including
             3679      a building inspector with whom the division has contracted under Subsection (1), shall be
             3680      permitted to enter upon the premises or site of work regulated under this chapter for the
             3681      purpose of determining compliance with [the provisions of] this chapter.
             3682          (6) The commission with the concurrence of the director shall make rules in
             3683      accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
             3684          (a) providing for the process of a building inspector:
             3685          (i) issuing a citation under this section; and


             3686          (ii) communicating to the division the issuance of a citation;
             3687          (b) subject to Subsection 61-2e-503 (4), establishing uniform fines to be imposed by a
             3688      building inspector; and
             3689          (c) what issues may be investigated by the division under this section.
             3690          Section 55. Section 61-2e-403 , which is renumbered from Section 58-55-403 is
             3691      renumbered and amended to read:
             3692           [58-55-403].     61-2e-403. Minimum time for division action.
             3693          The division has at least five working days after receiving an application for licensure
             3694      to determine whether to issue a license under this chapter.
             3695          Section 56. Section 61-2e-404 is enacted to read:
             3696          61-2e-404. Administrative review -- Special appeals boards.
             3697          (1) (a) Any applicant may submit a request for agency review to the executive director
             3698      within 30 days following notification of the denial of a license or refusal to renew or reinstate a
             3699      license if the applicant:
             3700          (i) has been denied a license to practice on the basis of:
             3701          (A) credentials;
             3702          (B) character; or
             3703          (C) failure to pass a required examination; or
             3704          (ii) has been refused renewal or reinstatement of a license to practice on the basis that
             3705      the applicant does not meet qualifications for continued licensure in any occupation or
             3706      profession governed by this chapter.
             3707          (b) The executive director shall determine whether the circumstances for denying an
             3708      application for an initial license or for renewal or reinstatement of a license would justify
             3709      calling a special appeals board under Subsection (2). The executive director's decision is not
             3710      subject to agency review.
             3711          (2) A special appeals board shall consist of three members appointed by the executive
             3712      director as follows:
             3713          (a) one member from the occupation or profession in question who is not on the board
             3714      of that occupation or profession;
             3715          (b) one member from the general public who is neither an attorney nor a practitioner in
             3716      an occupation or profession regulated by the division; and


             3717          (c) one member who is a resident lawyer currently licensed to practice law in this state
             3718      who shall serve as chair of the special appeals board.
             3719          (3) The special appeals board shall comply with the procedures and requirements of
             3720      Title 63, Chapter 46b, Administrative Procedures Act, in its proceedings.
             3721          (4) (a) Within a reasonable amount of time following the conclusion of a hearing
             3722      before a special appeals board, the board shall enter an order based upon the record developed
             3723      at the hearing. The order shall state whether a legal basis exists for denying the application for
             3724      an initial license or for renewal or reinstatement of a license that is the subject of the appeal.
             3725      The order is not subject to further agency review.
             3726          (b) The division or the applicant may obtain judicial review of the decision of the
             3727      special appeals board in accordance with Sections 63-46b-14 and 63-46b-16 .
             3728          (5) (a) A member of the board shall receive no compensation or benefits for the
             3729      member's services, but may receive per diem and expenses incurred in the performance of the
             3730      member's official duties at the rates established by the Division of Finance under Sections
             3731      63A-3-106 and 63A-3-107 .
             3732          (b) A member may decline to receive per diem and expenses for the member's service.
             3733          (6) If an applicant under Subsection (1) is not given a special appeals board, the
             3734      applicant shall be given agency review under the ordinary agency review procedures specified
             3735      by rule.
             3736          Section 57. Section 61-2e-405 is enacted to read:
             3737          61-2e-405. Minimum 90-day suspension.
             3738          A license may not be reinstated subsequent to action taken under Section 61-2e-401
             3739      within 90 days after the action has been taken, unless the division in collaboration with the
             3740      appropriate board imposes other conditions.
             3741          Section 58. Section 61-2e-406 is enacted to read:
             3742          61-2e-406. Diversion -- Procedure.
             3743          (1) As used in this section:
             3744          (a) "Diversion" means suspending action to discipline a licensee who is or could be
             3745      charged in a Notice of Agency Action with certain offenses within the category of
             3746      unprofessional or unlawful conduct on the condition that the licensee agrees to participate in an
             3747      educational or rehabilitation program or fulfill some other condition.


             3748          (b) "Diversion agreement" means a written agreement between the division, through its
             3749      director, and the licensee, that specifies formal terms and conditions the licensee must fulfill in
             3750      order to comply with the diversion program.
             3751          (2) (a) (i) The director may establish, as circumstances require, a diversion advisory
             3752      committee for each occupation or profession or similar groups of occupations or professions
             3753      licensed by the division under this chapter.
             3754          (ii) The committees shall assist the director in the administration of this section.
             3755          (b) (i) Each committee shall consist of at least three licensees from the same or similar
             3756      occupation or profession as the person whose conduct is the subject of the committee's
             3757      consideration.
             3758          (ii) The director shall appoint the members of a diversion advisory committee from
             3759      nominations submitted by the corresponding board established for the same or similar
             3760      occupation or profession under Section 61-2e-201 or from other qualified nominees developed
             3761      by or submitted to the division.
             3762          (iii) Committee members may not serve concurrently as members of the corresponding
             3763      board.
             3764          (iv) Committee members shall serve voluntarily without remuneration.
             3765          (v) The director may:
             3766          (A) dissolve any diversion advisory committee;
             3767          (B) remove or request the replacement of any member of a committee; and
             3768          (C) establish any procedure that is necessary and proper for a committee's
             3769      administration.
             3770          (3) The director may, after consultation with the appropriate diversion advisory
             3771      committee and by written agreement with the licensee, divert the licensee to a diversion
             3772      program:
             3773          (a) at any time after receipt by the division of a complaint against the licensee when no
             3774      adjudicative proceeding has been commenced;
             3775          (b) at any time prior to the conclusion of a hearing under Section 63-46b-8 when an
             3776      adjudicative proceeding has been commenced against the licensee; or
             3777          (c) after a self-referral by a licensee who is not the subject of a current investigation,
             3778      complaint, or adjudicative proceeding.


             3779          (4) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             3780      the division shall define by rule the particular offenses within the category of unprofessional or
             3781      unlawful conduct which may be subject to diversion.
             3782          (b) A licensee may be eligible for a diversion program only once for the same or
             3783      similar offense, whether the diversion program was in this state or another jurisdiction, and is
             3784      not eligible if previously disciplined by the division, by a licensing agency of another state, or
             3785      by a federal government agency for the same or a similar offense.
             3786          (c) The term of a diversion agreement shall be five years or less, but may be extended
             3787      for an additional period of time as agreed to by the parties in writing.
             3788          (d) A decision by the director not to divert a licensee is not subject to appeal or judicial
             3789      review.
             3790          (5) A licensee may be represented by counsel:
             3791          (a) during the negotiations for diversion;
             3792          (b) at the time of the execution of the diversion agreement; and
             3793          (c) at any hearing before the director relating to a diversion program.
             3794          (6) (a) (i) A diversion agreement shall contain, a full detailed:
             3795          (A) statement of the requirements agreed to by the licensee; and
             3796          (B) stipulation of the facts upon which the diversion agreement is premised.
             3797          (ii) The facts stipulated in the diversion agreement shall constitute binding admissions
             3798      of the licensee:
             3799          (A) in any proceeding under Subsection (6)(c) or (6)(d) to terminate the diversion
             3800      agreement and impose disciplinary sanctions against the licensee; and
             3801          (B) in any disciplinary proceeding based on unprofessional or unlawful conduct that is
             3802      not the basis of the diversion agreement.
             3803          (b) The diversion agreement shall provide that if the licensee makes an intentional
             3804      material misrepresentation of fact in the stipulation of facts contained in the diversion
             3805      agreement, the director shall initiate the procedures set forth in Subsection (13) to terminate the
             3806      diversion agreement and issue an order of license revocation.
             3807          (c) (i) The diversion agreement shall provide that if the licensee fails to comply with its
             3808      terms, the director shall initiate the procedures set forth in Subsection (14) to terminate the
             3809      diversion agreement and issue an order of license suspension, which shall be stayed in favor of


             3810      an order of probation having the same terms as those which comprised the diversion
             3811      agreement.
             3812          (ii) The division may waive and not include as probationary requirements any terms of
             3813      the diversion agreement it does not consider necessary to protect the public.
             3814          (iii) The term of the order of probation shall be as provided in Subsection (14)(c)(ii).
             3815          (d) The division director may not approve a diversion agreement unless the licensee, as
             3816      part of the diversion agreement:
             3817          (i) knowingly and intelligently waives the right to a hearing under Title 63, Chapter
             3818      46b, Administrative Procedures Act, for the conduct upon which the diversion agreement was
             3819      premised;
             3820          (ii) agrees to be subject to the procedures and remedies set forth in this section;
             3821          (iii) acknowledges an understanding of the consequences of making an intentional
             3822      misrepresentation of fact in the stipulation of facts contained in the diversion agreement; and
             3823          (iv) acknowledges an understanding of the consequences of failing to comply with the
             3824      terms of the diversion agreement.
             3825          (7) (a) If the division and the licensee enter into a diversion agreement after the
             3826      division has commenced an adjudicative proceeding against the licensee, the director shall stay
             3827      that proceeding pending completion of the diversion agreement.
             3828          (b) The order staying the adjudicative proceeding:
             3829          (i) shall be filed in that proceeding; and
             3830          (ii) may reference the diversion agreement.
             3831          (8) (a) Upon successful completion of a diversion agreement, the director shall dismiss
             3832      any charges under the director's jurisdiction of unprofessional or unlawful conduct that were
             3833      filed against the licensee.
             3834          (b) Whether or not an adjudicative proceeding had been commenced against the
             3835      licensee, the division may not thereafter subject the licensee to disciplinary action for the
             3836      conduct which formed the basis of the completed diversion agreement.
             3837          (c) Neither the execution of a diversion agreement nor the dismissal of filed charges
             3838      constitute disciplinary action, and no report of either may be made to disciplinary databases.
             3839          (d) The division may consider the completion of a diversion program and the contents
             3840      of the diversion agreement in determining the appropriate disciplinary action if the licensee is


             3841      charged in the future with the same or similar conduct.
             3842          (e) The order of dismissal shall be filed in the adjudicative proceeding in which the
             3843      misconduct was charged and may reference the diversion agreement.
             3844          (9) (a) Acceptance of the licensee into diversion does not preclude the division from
             3845      investigating or continuing to investigate the licensee for any unlawful or unprofessional
             3846      conduct committed before, during, or after participation in the diversion program.
             3847          (b) Acceptance of the licensee into diversion does not preclude the division from
             3848      taking disciplinary action or continuing to take disciplinary action against the licensee for
             3849      unlawful or unprofessional conduct committed before, during, or after participation in the
             3850      diversion program, except for that conduct that formed the basis for the diversion agreement.
             3851          (c) Any licensee terminated from the diversion program for failure to comply with the
             3852      diversion agreement is subject to disciplinary action by the division for acts committed before,
             3853      during, and after participation in the diversion program, including violations identified in the
             3854      diversion agreement.
             3855          (10) The classification, retention, and disclosure of records relating to a licensee's
             3856      participation in the diversion program is governed by Title 63, Chapter 2, Government Records
             3857      Access and Management Act, except that any provision in the diversion agreement that
             3858      addresses access to or release of diversion records regarding the licensee shall govern the
             3859      access to and release of those records.
             3860          (11) Notwithstanding any other provision of this section, the fact that the licensee
             3861      completed a diversion program and the contents of the diversion agreement itself may be
             3862      considered by the division in determining the appropriate disciplinary action if the licensee is
             3863      charged in the future with the same or similar conduct.
             3864          (12) A meeting regarding the diversion program is not subject to Title 52, Chapter 4,
             3865      Open and Public Meetings.
             3866          (13) (a) If, during the course of the diversion agreement, information is brought to the
             3867      attention of the director that the licensee made an intentional material misrepresentation of fact
             3868      in the stipulation of facts contained in the diversion agreement, the director shall cause to be
             3869      served upon the licensee an order to show cause:
             3870          (i) specifying the information relied upon by the director; and
             3871          (ii) setting a time and place for hearing to determine:


             3872          (A) whether or not the licensee made the intentional material misrepresentation of fact;
             3873      and
             3874          (B) whether the agreement should be terminated on that ground.
             3875          (b) Proceedings to terminate a diversion agreement on the grounds that the licensee
             3876      made an intentional material misrepresentation of fact in the stipulation of facts contained in
             3877      the diversion agreement and to issue an order of license revocation shall comply with Title 63,
             3878      Chapter 46b, Administrative Procedures Act, except as follows:
             3879          (i) the notice of agency action shall be in the form of an order to show cause, which
             3880      shall contain all of the information specified in Subsection 63-46b-3 (2), except a statement that
             3881      a written response to the order to show cause is required;
             3882          (ii) a written response to the order to show cause is not required;
             3883          (iii) discovery is prohibited, but:
             3884          (A) the division may issue subpoenas or other orders to compel production of
             3885      necessary evidence on behalf of either party; and
             3886          (B) all parties shall have access to information contained in the division's diversion file
             3887      to the extent permitted by law;
             3888          (iv) the hearing shall be held only after timely notice to all parties; and
             3889          (v) any agency review or reconsideration of an order terminating a diversion agreement
             3890      or of an order of license revocation pursuant to this Subsection (13) shall be limited to the
             3891      division director's findings of fact, conclusions of law, and order which arose out of the order
             3892      to show cause proceeding.
             3893          (c) The director shall issue an order of license revocation, revoking the licensee's
             3894      professional license upon:
             3895          (i) finding the licensee made an intentional material misrepresentation of fact in the
             3896      stipulation of facts contained in the diversion agreement;
             3897          (ii) finding that terminating the agreement is in the best interest of the public; and
             3898          (iii) issuing an order to that effect.
             3899          (d) The order terminating the diversion agreement and the order of license revocation
             3900      shall include findings of fact and conclusions of law as determined by the director following
             3901      the hearing or as otherwise stipulated and agreed to by the parties.
             3902          (e) If the diversion agreement being terminated is entered into after the division has


             3903      commenced an adjudicative proceeding against the licensee, that adjudicative proceeding shall
             3904      be considered to be merged into the order of license revocation and it may not constitute a basis
             3905      for any separate disciplinary action against the licensee.
             3906          (f) The order terminating the diversion agreement and the order of license revocation
             3907      shall notify the licensee of the right to request agency review or reconsideration.
             3908          (14) (a) If, during the course of the diversion agreement, information is brought to the
             3909      attention of the director that the licensee has violated the diversion agreement and if it appears
             3910      in the best interest of the public to proceed with charges, the director, after consultation with
             3911      the diversion advisory committee, shall cause to be served upon the licensee an order to show
             3912      cause:
             3913          (i) specifying the facts relied upon by the director; and
             3914          (ii) setting a time and place for hearing to determine:
             3915          (A) whether or not the licensee has violated the diversion agreement; and
             3916          (B) whether the agreement should be terminated.
             3917          (b) Proceedings to terminate a diversion agreement and to issue an order of license
             3918      suspension and probation, and proceedings to terminate the probation and lift the stay of a
             3919      license suspension, shall comply with Title 63, Chapter 46b, Administrative Procedures Act,
             3920      except as follows:
             3921          (i) the notice of agency action shall be in the form of an order to show cause, which
             3922      shall contain all of the information specified in Subsection 63-46b-3 (2), except a statement that
             3923      a written response to the order to show cause is required;
             3924          (ii) a written response to the order to show cause is not required;
             3925          (iii) discovery is prohibited, but:
             3926          (A) the division may issue subpoenas or other orders to compel production of
             3927      necessary evidence on behalf of either party; and
             3928          (B) all parties shall have access to information contained in the division's diversion file
             3929      to the extent permitted by law;
             3930          (iv) the hearing shall be held only after timely notice to all parties; and
             3931          (v) any agency review or reconsideration of an order terminating a diversion agreement
             3932      or of an order of license suspension and probation pursuant to this Subsection (14) shall be
             3933      limited to the division director's findings of fact, conclusions of law, and order which arose out


             3934      of the order to show cause proceeding.
             3935          (c) (i) Upon finding the licensee has violated the diversion agreement and that
             3936      terminating the agreement is in the best interest of the public, and issuing an order to that
             3937      effect, the director shall issue an order of license suspension, suspending the licensee's
             3938      professional license, but shall stay that suspension in favor of an order of probation, consisting
             3939      of the same terms as those which comprised the diversion agreement.
             3940          (ii) The period of probation, unless otherwise agreed to by the parties shall be the
             3941      longer of:
             3942          (A) the time period that remains under the diversion agreement; or
             3943          (B) five years from the date of the order of license suspension and probation.
             3944          (iii) The period of probation is tolled during any time in which the licensee does not
             3945      have an active license in the state.
             3946          (d) (i) The order terminating the diversion agreement and the order of license
             3947      suspension and probation shall include findings of fact and conclusions of law as determined
             3948      by the director following the hearing or as otherwise stipulated and agreed to by the parties.
             3949          (ii) The findings of fact may include those facts to which the licensee stipulated in the
             3950      diversion agreement and any additional facts as the director may determine in the course of the
             3951      hearing.
             3952          (e) If the diversion agreement being terminated is entered into after the division has
             3953      commenced an adjudicative proceeding against the licensee:
             3954          (i) that adjudicative proceeding shall be considered to be merged into the order of
             3955      license suspension and probation; and
             3956          (ii) may not constitute a basis for any separate disciplinary action against the licensee.
             3957          (f) The order terminating the diversion agreement and the order of license suspension
             3958      and probation shall notify the licensee of the right to request agency review or reconsideration.
             3959          (g) (i) The terms and conditions of the order of license suspension and probation may
             3960      be amended by order of the director, pursuant to motion or stipulation of the parties.
             3961          (ii) The order of the director on the motion is not subject to agency review, but is
             3962      subject to agency reconsideration under Section 63-46b-13 .
             3963          (h) (i) If, during the course of probation, the director has reason to believe the licensee
             3964      has violated the order of suspension and probation, the director shall cause to be served upon


             3965      the licensee an order to show cause why the probation should not be terminated and the stay of
             3966      suspension lifted.
             3967          (ii) The order to show cause shall specify the facts relied upon by the director and shall
             3968      set a time and place for hearing before the director to determine:
             3969          (A) whether or not the licensee has violated the order of suspension and probation; and
             3970          (B) whether that order should be terminated and the stay of suspension lifted.
             3971          (15) (a) Nothing in this section precludes the division from issuing an emergency order
             3972      pursuant to Section 63-46b-20 .
             3973          (b) If the division issues an emergency order against a licensee who is subject to a
             3974      diversion agreement with the division, that diversion agreement shall be immediately and
             3975      automatically terminated upon the issuance of the emergency order, without compliance with
             3976      Title 63, Chapter 46b, Administrative Procedures Act.
             3977          (c) (i) A licensee whose diversion agreement has been terminated pursuant to
             3978      Subsection (15)(b) is entitled, upon request, to a posttermination hearing to challenge the
             3979      termination of the diversion agreement.
             3980          (ii) The request shall be considered a request for agency action and shall comply with
             3981      the requirements of Subsection 63-46b-3 (3).
             3982          (iii) The division shall uphold the termination of the diversion agreement if it finds
             3983      that:
             3984          (A) the licensee violated the diversion agreement; and
             3985          (B) it is in the best interest of the public to terminate the diversion agreement.
             3986          (16) The administrative statute of limitations for taking disciplinary action described in
             3987      Subsection 58-1-401 (5) shall be tolled during a diversion program.
             3988          Section 59. Section 61-2e-501 (Effective 07/01/05) , which is renumbered from Section
             3989      58-55-501 (Effective 07/01/05) is renumbered and amended to read:
             3990     
Part 5. Unprofessional and Unlawful Conduct -- Penalties

             3991           [58-55-501 (Effective 07/01/05)].     61-2e-501 (Effective 07/01/05). Unlawful
             3992      conduct.
             3993          Unlawful conduct includes:
             3994          (1) engaging in a construction trade, acting as a contractor, an alarm business or
             3995      company, or an alarm company agent, or representing oneself to be engaged in a construction


             3996      trade or to be acting as a contractor in a construction trade requiring licensure, unless the
             3997      person doing any of these is appropriately licensed or exempted from licensure under this
             3998      chapter;
             3999          (2) acting in a construction trade, as an alarm business or company, or as an alarm
             4000      company agent beyond the scope of the license held;
             4001          (3) hiring or employing in any manner an unlicensed person, other than an employee
             4002      for wages who is not required to be licensed under this chapter, to engage in a construction
             4003      trade for which licensure is required or to act as a contractor or subcontractor in a construction
             4004      trade requiring licensure;
             4005          (4) applying for or obtaining a building permit either for oneself or another when not
             4006      licensed or exempted from licensure as a contractor under this chapter;
             4007          (5) issuing a building permit to any person for whom there is no evidence of a current
             4008      license or exemption from licensure as a contractor under this chapter;
             4009          (6) applying for or obtaining a building permit for the benefit of or on behalf of any
             4010      other person who is required to be licensed under this chapter but who is not licensed or is
             4011      otherwise not entitled to obtain or receive the benefit of the building permit;
             4012          (7) failing to obtain a building permit when required by law or rule;
             4013          (8) submitting a bid for any work for which a license is required under this chapter by a
             4014      person not licensed or exempted from licensure as a contractor under this chapter;
             4015          (9) willfully or deliberately misrepresenting or omitting a material fact in connection
             4016      with an application to obtain or renew a license under this chapter;
             4017          (10) allowing one's license to be used by another except as provided by statute or rule;
             4018          (11) doing business under a name other than the name appearing on the license, except
             4019      as permitted by statute or rule;
             4020          (12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
             4021      journeyman plumber, residential journeyman plumber, journeyman electrician, master
             4022      electrician, or residential electrician, failing to directly supervise an apprentice under one's
             4023      supervision or exceeding the number of apprentices one is allowed to have under his
             4024      supervision;
             4025          (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
             4026      funds in payment for a specific project from an owner or any other person, which funds are to


             4027      pay for work performed or materials and services furnished for that specific project, and after
             4028      receiving the funds to exercise unauthorized control over the funds by failing to pay the full
             4029      amounts due and payable to persons who performed work or furnished materials or services
             4030      within a reasonable period of time;
             4031          (14) employing as an alarm company an unlicensed individual as an alarm company
             4032      agent, except as permitted under the exemption from licensure provisions under Section
             4033      [ 58-1-307 ] 61-2e-305 ;
             4034          (15) if licensed as an alarm company or alarm company agent, filing with the division
             4035      fingerprint cards for an applicant which are not those of the applicant, or are in any other way
             4036      false or fraudulent and intended to mislead the division in its consideration of the applicant for
             4037      licensure;
             4038          (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
             4039          (a) the building or construction laws of this state or any political subdivision;
             4040          (b) the safety and labor laws applicable to a project;
             4041          (c) any provision of the health laws applicable to a project;
             4042          (d) the workers' compensation insurance laws of the state applicable to a project;
             4043          (e) the laws governing withholdings for employee state and federal income taxes,
             4044      unemployment taxes, FICA, or other required withholdings; or
             4045          (f) reporting, notification, and filing laws of this state or the federal government;
             4046          (17) aiding or abetting any person in evading the provisions of this chapter or rules
             4047      established under the authority of the division to govern this chapter;
             4048          (18) engaging in the construction trade or as a contractor for the construction of
             4049      residences of up to two units when not currently registered or exempt from registration as a
             4050      qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
             4051      Fund Act;
             4052          (19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
             4053      written contract the notification required in Section 38-11-108 ;
             4054          (20) wrongfully filing a mechanics' lien in violation of Section 38-1-25 ; [or]
             4055          (21) if licensed as a contractor, not completing a three-hour core education class and an
             4056      additional three hours of professional education approved by the division and the Construction
             4057      Services Commission within each two-year renewal cycle, beginning with the two-year renewal


             4058      cycle that starts July 1, 2005, and ends June 30, 2007:
             4059          (a) unless an exemption has been granted to the licensee by the Construction Services
             4060      Commission, with the concurrence of the division[,]; and
             4061          (b) except that:
             4062          (i) this Subsection (21) is repealed effective July 1, 2010; and [its]
             4063          (ii) implementation of this Subsection (21) is subject to the division receiving adequate
             4064      funding for its implementation through a legislative appropriation[.];
             4065          (22) practicing or engaging in, representing oneself to be practicing or engaging in, or
             4066      attempting to practice or engage in any occupation or profession requiring licensure under this
             4067      chapter if the person is:
             4068          (a) (i) not licensed to do so; or
             4069          (ii) not exempted from licensure under this chapter; or
             4070          (b) restricted from doing so by a suspended, revoked, restricted, temporary,
             4071      probationary, or inactive license;
             4072          (23) impersonating another licensee or practicing an occupation or profession under a
             4073      false or assumed name, except as permitted by law;
             4074          (24) knowingly permitting the person's authority to practice or engage in any
             4075      occupation or profession licensed under this chapter to be used by another, except as permitted
             4076      by law; or
             4077          (25) obtaining a passing score on a licensure examination, applying for or obtaining a
             4078      license, or otherwise dealing with the division or a licensing board through the use of:
             4079          (a) fraud;
             4080          (b) forgery; or
             4081          (c) intentional deception, misrepresentation, misstatement, or omission.
             4082          Section 60. Section 61-2e-502 , which is renumbered from Section 58-55-502 is
             4083      renumbered and amended to read:
             4084           [58-55-502].     61-2e-502. Unprofessional conduct.
             4085          Unprofessional conduct means conduct, by a licensee or applicant, that is defined as
             4086      unprofessional conduct under this section or under any rule adopted under this section and
             4087      includes:
             4088          (1) failing to establish, maintain, or demonstrate financial responsibility while licensed


             4089      as a contractor under this chapter;
             4090          (2) disregarding or violating through gross negligence or a pattern of negligence:
             4091          (a) the building or construction laws of this state or any political subdivision;
             4092          (b) the safety and labor laws applicable to a project;
             4093          (c) any provision of the health laws applicable to a project;
             4094          (d) the workers' compensation insurance laws of this state applicable to a project;
             4095          (e) the laws governing withholdings for employee state and federal income taxes,
             4096      unemployment taxes, FICA, or other required withholdings; or
             4097          (f) any reporting, notification, and filing laws of this state or the federal government;
             4098          (3) any willful, fraudulent, or deceitful act by a licensee, caused by a licensee, or at a
             4099      licensee's direction which causes material injury to another;
             4100          (4) contract violations that pose a threat or potential threat to the public health, safety,
             4101      and welfare including:
             4102          (a) willful, deliberate, or grossly negligent departure from or disregard for plans or
             4103      specifications, or abandonment or failure to complete a project without the consent of the
             4104      owner or his duly authorized representative or the consent of any other person entitled to have
             4105      the particular project completed in accordance with the plans, specifications, and contract
             4106      terms;
             4107          (b) failure to deposit funds to the benefit of an employee as required under any written
             4108      contractual obligation the licensee has to the employee;
             4109          (c) failure to maintain in full force and effect any health insurance benefit to an
             4110      employee that was extended as a part of any written contractual obligation or representation by
             4111      the licensee, unless the employee is given written notice of the licensee's intent to cancel or
             4112      reduce the insurance benefit at least 45 days before the effective date of the cancellation or
             4113      reduction;
             4114          (d) failure to reimburse the Residence Lien Recovery Fund as required by Section
             4115      38-11-207 ;
             4116          (e) failure to provide, when applicable, the information required by Section 38-11-108 ;
             4117      and
             4118          (f) willfully or deliberately misrepresenting or omitting a material fact in connection
             4119      with an application to claim recovery from the Residence Lien Recovery Fund under Section


             4120      38-11-204 ;
             4121          (5) failing as an alarm company to notify the division of the cessation of performance
             4122      of its qualifying agent, or failing to replace its qualifying agent as required under Section
             4123      [ 58-55-304 ] 61-2e-304 ;
             4124          (6) failing as an alarm company agent to carry or display a copy of the licensee's
             4125      license as required under Section [ 58-55-311 ] 61-2e-310 ; [or]
             4126          (7) failing to comply with operating standards established by rule in accordance with
             4127      Section [ 58-55-308 .] 61-2e-308 ;
             4128          (8) violating, or aiding or abetting any other person to violate, any statute, rule, or order
             4129      regulating an occupation or profession under this chapter;
             4130          (9) violating, or aiding or abetting any other person to violate, any generally accepted
             4131      professional or ethical standard applicable to an occupation or profession regulated under this
             4132      chapter;
             4133          (10) engaging in conduct that results in conviction, a plea of nolo contendere, or a plea
             4134      of guilty or nolo contendere that is held in abeyance pending the successful completion of
             4135      probation with respect to a crime of moral turpitude or any other crime that, when considered
             4136      with the functions and duties of the occupation or profession for which the license was issued
             4137      or is to be issued, bears a reasonable relationship to the licensee's or applicant's ability to safely
             4138      or competently practice the occupation or profession;
             4139          (11) engaging in conduct that results in disciplinary action, including reprimand,
             4140      censure, diversion, probation, suspension, or revocation, by any other licensing or regulatory
             4141      authority having jurisdiction over the licensee or applicant in the same occupation or profession
             4142      if the conduct would, in this state, constitute grounds for denial of licensure or disciplinary
             4143      proceedings under Section 61-2e-401 ;
             4144          (12) engaging in conduct, including the use of intoxicants, drugs, narcotics, or similar
             4145      chemicals, to the extent that the conduct does, or might reasonably be considered to, impair the
             4146      ability of the licensee or applicant to safely engage in the occupation or profession;
             4147          (13) practicing or attempting to practice an occupation or profession regulated under
             4148      this chapter despite being physically or mentally unfit to do so;
             4149          (14) practicing or attempting to practice an occupation or profession regulated under
             4150      this chapter through gross incompetence, gross negligence, or a pattern of incompetency or


             4151      negligence;
             4152          (15) practicing or attempting to practice an occupation or profession requiring
             4153      licensure under this chapter by any form of action or communication which is false,
             4154      misleading, deceptive, or fraudulent;
             4155          (16) practicing or attempting to practice an occupation or profession regulated under
             4156      this chapter beyond the scope of the licensee's competency, abilities, or education;
             4157          (17) practicing or attempting to practice an occupation or profession regulated under
             4158      this chapter beyond the scope of the licensee's license;
             4159          (18) verbally, physically, mentally, or sexually abusing or exploiting any person
             4160      through conduct connected with the licensee's practice under this title or otherwise facilitated
             4161      by the licensee's license; or
             4162          (19) acting as a supervisor without meeting the qualification requirements for that
             4163      position that are defined by statute or rule.
             4164          Section 61. Section 61-2e-503 (Effective 07/01/05) , which is renumbered from Section
             4165      58-55-503 (Effective 07/01/05) is renumbered and amended to read:
             4166           [58-55-503 (Effective 07/01/05)].     61-2e-503 (Effective 07/01/05). Penalty for
             4167      unlawful conduct -- Citations.
             4168          (1) (a) Any person who violates Subsection [ 58-55-308 ] 61-2e-308 (2) or Subsection
             4169      [ 58-55-501 ] 61-2e-501 (1), (2), (3), (4), (5), (6), (7), (9), (10), (12), (14), or (15), or who fails to
             4170      comply with a citation issued under this section after it is final, is guilty of a class A
             4171      misdemeanor.
             4172          (b) Any person who violates [the provisions of] Subsection [ 58-55-501 ] 61-2e-501 (8)
             4173      may not be awarded and may not accept a contract for the performance of the work.
             4174          (2) Any person who violates [the provisions of] Subsection [ 58-55-501 ] 61-2e-501 (13)
             4175      is guilty of an infraction unless the violator did so with the intent to deprive the person to
             4176      whom money is to be paid of the money received, in which case the violator is guilty of theft,
             4177      as classified in Section 76-6-412 .
             4178          (3) Grounds for immediate suspension of the licensee's license by the division and the
             4179      commission include:
             4180          (a) the issuance of a citation for violation of Subsection [ 58-55-308 ] 61-2e-308 (2) or
             4181      Section [ 58-55-501 ] 61-2e-501 ; or


             4182          (b) the failure by a licensee to make application to, report to, or notify the division with
             4183      respect to any matter for which application, notification, or reporting is required under this
             4184      chapter or rules adopted under this chapter, including:
             4185          (i) applying to the division for a new license to engage in a new specialty classification
             4186      or to do business under a new form of organization or business structure[,];
             4187          (ii) filing with the division current financial statements[,]; or
             4188          (iii) notifying the division concerning loss of insurance coverage, or change in
             4189      qualifier.
             4190          (4) (a) If upon inspection or investigation, the division or building inspector concludes
             4191      that a person has violated [the provisions of] Subsection [ 58-55-308 ] 61-2e-308 (2) or
             4192      Subsections [ 58-55-501 ] 61-2e-501 (1), (2), (3), (9), (10), (12), (14), (19), (21) or any rule or
             4193      order issued with respect to these subsections, and that disciplinary action is appropriate[,]:
             4194          (i) the director or the director's designee from within the division shall:
             4195          (A) promptly issue a citation to the person according to this chapter and any pertinent
             4196      rules[,];
             4197          (B) attempt to negotiate a stipulated settlement[,]; or
             4198          (C) notify the person to appear before an adjudicative proceeding conducted under
             4199      Title 63, Chapter 46b, Administrative Procedures Act[.]; or
             4200          (ii) the building inspector shall promptly issue a citation to the person according to this
             4201      chapter and any pertinent rules.
             4202          [(i)] (b) Any person who is in violation [of the provisions] of Subsection [ 58-55-308 ]
             4203      61-2e-308 (2) or Subsection [ 58-55-501 ] 61-2e-501 (1), (2), (3), (9), (10), (12), (14), (19), or
             4204      (21) as evidenced by an uncontested citation, a stipulated settlement, or by a finding of
             4205      violation in an adjudicative proceeding[,]:
             4206          (i) may be assessed a fine pursuant to this Subsection (4); and
             4207          (ii) may, in addition to or in lieu of the fine, be ordered to cease and desist from
             4208      violating Subsection [ 58-55-308 ] 61-2e-308 (2) or Subsection [ 58-55-501 ] 61-2e-501 (1), (2),
             4209      (3), (9), (10), (12), (14), (19), or (21).
             4210          [(ii)] (c) Except for a cease and desist order, the licensure sanctions cited in Section
             4211      [ 58-55-401 ] 61-2e-401 may not be assessed through a citation.
             4212          [(iii) (A)] (d) (i) A person who receives a citation or is fined for violating Subsection


             4213      [ 58-55-501 ] 61-2e-501 (21) may also be issued a cease and desist order from engaging in work
             4214      to be performed by a contractor licensed under this chapter unless the person meets the
             4215      continuing education requirement within 30 days after receipt of the citation or fine.
             4216          [(B)] (ii) The order, if issued, shall be removed upon the person's completion of the
             4217      continuing education requirement.
             4218          [(C)] (iii) This Subsection [(4)(a)(iii)] (4)(b) is repealed effective July 1, 2010.
             4219          [(b)] (e) Each citation shall:
             4220          (i) be in writing [and];
             4221          (ii) describe with particularity the nature of the violation, including a reference to the
             4222      provision of the chapter, rule, or order alleged to have been violated[. The citation shall];
             4223          (iii) clearly state that the recipient must notify the division in writing within 20
             4224      calendar days of service of the citation if the recipient wishes to contest the citation at a hearing
             4225      conducted under Title 63, Chapter 46b, Administrative Procedures Act[. The citation shall];
             4226      and
             4227          (iv) clearly explain the consequences of failure to timely contest the citation or to make
             4228      payment of any fines assessed by the citation within the time specified in the citation.
             4229          [(c)] (f) Each citation issued under this section, or a copy of each citation, may be
             4230      served upon any person upon whom a summons may be served:
             4231          (i) in accordance with the Utah Rules of Civil Procedure;
             4232          (ii) personally or upon the person's agent by:
             4233          (A) a division investigator [or by];
             4234          (B) any person specially designated by the director; or
             4235          (C) a building inspector; or
             4236          (iii) by mail.
             4237          [(d)] (g) If within 20 calendar days from the service of a citation, the person to whom
             4238      the citation [was] is issued fails to request a hearing to contest the citation, the citation becomes
             4239      the final order of the division and is not subject to further agency review. The period to contest
             4240      a citation may be extended by the division for cause.
             4241          [(e)] (h) The division may refuse to issue or renew, suspend, revoke, or place on
             4242      probation the license of a licensee who fails to comply with a citation after it becomes final.
             4243          [(f)] (i) The failure of an applicant for licensure to comply with a citation after it


             4244      becomes final is a ground for denial of license.
             4245          [(g) No] (j) A citation may not be issued under this section after the expiration of six
             4246      months following the occurrence of any violation.
             4247          [(h)] (k) Fines shall be assessed by the director [or], the director's designee, or a
             4248      building inspector according to the following:
             4249          (i) for a first offense handled pursuant to [Subsection] Subsections (4)(a) through (c), a
             4250      fine of up to $1,000;
             4251          (ii) for a second offense handled pursuant to [Subsection] Subsections (4)(a) through
             4252      (c), a fine of up to $2,000; and
             4253          (iii) for any subsequent offense handled pursuant to [Subsection] Subsections (4)(a)
             4254      through (c), a fine of up to $2,000 for each day of continued offense.
             4255          [(i)] (l) (i) For purposes of issuing a final order under this section and assessing a fine
             4256      under Subsection (4)[(i)] (k), an offense constitutes a second or subsequent offense if:
             4257          (A) the division previously issued a final order determining that a person committed a
             4258      first or second offense in violation of Subsection [ 58-55-308 ] 61-2e-308 (2) or Subsection
             4259      [ 58-55-501 ] 61-2e-501 (1), (2), (3), (9), (10), (12), (14), or (19); or
             4260          (B) (I) the division initiated an action for a first or second offense;
             4261          (II) no final order has been issued by the division in the action initiated under
             4262      Subsection (4)[(i)] (l)(i)(B)(I);
             4263          (III) the division determines during an investigation that occurred after the initiation of
             4264      the action under Subsection (4)[(i)] (l)(i)(B)(I) that the person committed a second or
             4265      subsequent violation of [the provisions of] Subsection [ 58-55-308 ] 61-2e-308 (2) or Subsection
             4266      [ 58-55-501 ] 61-2e-501 (1), (2), (3), (9), (10), (12), (14), or (19); and
             4267          (IV) after determining that the person committed a second or subsequent offense under
             4268      Subsection (4)[(i)] (l)(i)(B)(III), the division issues a final order on the action initiated under
             4269      Subsection (4) [(i)] (l)(B)(I).
             4270          (ii) In issuing a final order for a second or subsequent offense under Subsection (4)[(i)]
             4271      (l)(i), the division shall comply with the requirements of this section.
             4272          (5) (a) [Any penalty] A fine imposed [by the director] under Subsection (4)[(h)] (k)
             4273      shall:
             4274          (i) if the fine is imposed on the basis of a citation issued by a building inspector


             4275      transferred to the political subdivision under the authority of which the building inspector
             4276      conducts an inspection at the time the citation is issued; or
             4277          (ii) if the fine is not a fine described in Subsection (5)(a)(i), be deposited into the
             4278      Commerce Service Fund.
             4279          (b) Any penalty which is not paid may be collected by the director by [either]:
             4280          (i) referring the matter to a collection agency; or
             4281          (ii) bringing an action in the district court:
             4282          (A) of the county in which the person against whom the penalty is imposed resides; or
             4283          (B) in the county where the office of the director is located.
             4284          (c) Any county attorney or the attorney general of the state is to provide legal
             4285      assistance and advice to the director in any action to collect the penalty.
             4286          (d) In any action brought to enforce [the provisions of] this section, reasonable
             4287      attorney's fees and costs shall be awarded.
             4288          Section 62. Section 61-2e-504 is enacted to read:
             4289          61-2e-504. Maximum civil penalty for violation of court order.
             4290          (1) If any written order issued under this chapter or if an injunction or temporary
             4291      restraining order issued by a court of competent jurisdiction relating to this chapter is violated,
             4292      the court may impose a civil penalty of not more than $2,000 for each day the written order,
             4293      injunction, or temporary restraining order is violated, if the person in violation has received
             4294      notice of the written order, injunction, or temporary restraining order.
             4295          (2) All penalties ordered under this section shall be deposited into the General Fund.
             4296          Section 63. Section 61-2e-505 is enacted to read:
             4297          61-2e-505. Court-ordered discipline.
             4298          The division shall promptly withhold, suspend, restrict, or reinstate the use of a license
             4299      issued under this chapter if so ordered by a court.
             4300          Section 64. Section 61-2e-601 , which is renumbered from Section 58-55-601 is
             4301      renumbered and amended to read:
             4302     
Part 6. Payment Provisions

             4303           [58-55-601].     61-2e-601. Payment -- Account designated.
             4304          [When] (1) A contractor shall designate the contract under which a payment is made or
             4305      the items of account to which it is to be applied when making any payment to a materialman,


             4306      supplier, contractor, or subcontractor:
             4307          (a) with whom [he] the contractor has a running account[, or];
             4308          (b) with whom [he] the contractor has more than one contract[,]; or
             4309          (c) to whom [he] the contractor is otherwise indebted[, the contractor shall designate
             4310      the contract under which the payment is made or the items of account to which it is to be
             4311      applied].
             4312          (2) When a payment for materials or labor is made to a subcontractor or materialman,
             4313      the subcontractor or materialman shall demand of the person making the payment a designation
             4314      of the account and the items of account to which the payment is to apply.
             4315          (3) In cases where a lien is claimed for materials furnished or labor performed by a
             4316      subcontractor or materialman, it is a defense to the claim that a payment was made by the
             4317      owner to the contractor for the materials and was so designated and paid over to the
             4318      subcontractor or materialman, if when the payment was received by the subcontractor or
             4319      materialman, [he] the subcontractor or materialman did not demand a designation of the
             4320      account and of the items of account to which the payment was to be applied.
             4321          Section 65. Section 61-2e-602 , which is renumbered from Section 58-55-602 is
             4322      renumbered and amended to read:
             4323           [58-55-602].     61-2e-602. Payment of construction funds -- Interest.
             4324          (1) All unpaid construction funds are payable to the contractor as provided in Section
             4325      13-8-5 .
             4326          (2) On projects involving multiple buildings, each building shall be considered
             4327      individually in determining the amount to be paid the contractor.
             4328          (3) Partial occupancy of a building requires payment in direct proportion to the value
             4329      of the part of the building occupied.
             4330          (4) If any payment is retained or withheld, it shall be retained or withheld and released
             4331      as provided in Section 13-8-5 .
             4332          Section 66. Section 61-2e-603 , which is renumbered from Section 58-55-603 is
             4333      renumbered and amended to read:
             4334           [58-55-603].     61-2e-603. Payment to subcontractors and suppliers.
             4335          (1) When a contractor receives any construction funds from an owner or another
             4336      contractor for work performed and billed, [he] the contractor shall pay each of [his] the


             4337      contractor's subcontractors and suppliers in proportion to the percentage of the work they
             4338      performed under that billing, unless otherwise agreed by contract. [(2) If,]
             4339          (2) (a) If the conditions of Subsection (2)(b) are met, a contractor shall pay to a
             4340      subcontractor or supplier, in addition to the payment:
             4341          (i) interest in the amount of 1% per month of the amount due, beginning on the day
             4342      after payment is due; and
             4343          (ii) reasonable costs of any collection and attorney's fees.
             4344          (b) Subsection (2)(a) applies if, under this section and without reasonable cause, or
             4345      unless otherwise agreed by contract, the contractor fails to pay for work performed by [his] the
             4346      contractor's subcontractors or suppliers within the later of:
             4347          (i) 30 consecutive days after receiving construction funds for work performed and
             4348      billed from:
             4349          (A) the owner; or
             4350          (B) another contractor [for work performed and billed,]; or [after]
             4351          (ii) the last day payment is due under the terms of the billing[, whichever is later, he
             4352      shall pay to the subcontractor or supplier, in addition to the payment, interest in the amount of
             4353      1% per month of the amount due, beginning on the day after payment is due, and reasonable
             4354      costs of any collection and attorney's fees].
             4355          (3) When a subcontractor receives any construction payment under this section,
             4356      Subsections (1) and (2) apply to that subcontractor.
             4357          Section 67. Section 61-2e-604 , which is renumbered from Section 58-55-604 is
             4358      renumbered and amended to read:
             4359           [58-55-604].     61-2e-604. Proof of licensure to maintain or commence
             4360      action.
             4361          [No] A contractor may not act as agent or commence or maintain any action in any
             4362      court of the state for collection of compensation for performing any act for which a license is
             4363      required by this chapter without alleging and proving that [he] the contractor was a properly
             4364      licensed contractor:
             4365          (1) when the contract sued upon was entered into[,]; and
             4366          (2) when the alleged cause of action arose.
             4367          Section 68. Section 61-2f-101 , which is renumbered from Section 58-56-1 is


             4368      renumbered and amended to read:
             4369     
CHAPTER 2f. UTAH UNIFORM BUILDING STANDARDS ACT

             4370     
Part 1. General Provisions

             4371           [58-56-1].     61-2f-101. Title.
             4372          This chapter is known as the "Utah Uniform Building Standards Act."
             4373          Section 69. Section 61-2f-102 , which is renumbered from Section 58-56-2 is
             4374      renumbered and amended to read:
             4375           [58-56-2].     61-2f-102. Chapter administration.
             4376          [The provisions of this] This chapter shall be administered by the Division of
             4377      [Occupational and Professional Licensing] Real Estate.
             4378          Section 70. Section 61-2f-103 , which is renumbered from Section 58-56-3 is
             4379      renumbered and amended to read:
             4380           [58-56-3].     61-2f-103. Definitions.
             4381          [In addition to the definitions in Section 58-1-102 , as] As used in this chapter:
             4382          (1) "Building" means a structure used or intended for supporting or sheltering any use
             4383      or occupancy and any improvements attached to it.
             4384          (2) "Code(s)" means the following codes, including the standards and specifications
             4385      contained in them:
             4386          (a) codes adopted by the commission under Subsection [ 58-56-4 ] 61-2f-201 (2); and
             4387          (b) codes approved by the commission under Subsection [ 58-56-4 ] 61-2f-201 (4)(a).
             4388          (3) "Commission" means the Uniform Building Code Commission created under this
             4389      chapter.
             4390          (4) "Compliance agency" means:
             4391          (a) an agency of the state or any of its political subdivisions which issues permits for
             4392      construction regulated under the codes[,]; or
             4393          (b) any other agency of the state or its political subdivisions specifically empowered to
             4394      enforce compliance with the codes.
             4395          (5) "Division" means the Division of Real Estate.
             4396          [(5)] (6) "Factory built housing" means manufactured homes or mobile homes.
             4397          [(6)] (7) (a) "Factory built housing set-up contractor" means an individual licensed by
             4398      the division to set up or install factory built housing on a temporary or permanent basis.


             4399          (i) The scope of the work included under the license includes:
             4400          (A) the placement and or securing of the factory built housing on a permanent or
             4401      temporary foundation[,];
             4402          (B) securing the units together if required[,]; and
             4403          (C) connection of the utilities to the factory built housing unit[, but].
             4404          (ii) The scope of the work included under the license does not include:
             4405          (A) site preparation[,];
             4406          (B) construction of a permanent foundation[,]; and
             4407          (C) construction of utility services to the near proximity of the factory built housing
             4408      unit.
             4409          (b) If a dealer is not licensed as a factory built housing set up contractor, that individual
             4410      must subcontract the connection services to individuals who are licensed by the division to
             4411      perform those specific functions under Title [58] 61, Chapter [55] 2e, Utah Construction
             4412      Trades Licensing Act.
             4413          [(7)] (8) "HUD code" means the National Manufactured Housing Construction and
             4414      Safety Standards Act, 42 U.S.C. Sec. 5401 et seq.
             4415          [(8)] (9) "Local regulator" means each political subdivision of the state [which] that is
             4416      empowered to engage in the regulation of construction, alteration, remodeling, building, repair,
             4417      and other activities subject to the codes.
             4418          [(9)] (10) (a) "Manufactured home" means a transportable factory built housing unit:
             4419          (i) constructed:
             4420          (A) on or after June 15, 1976[,];
             4421          (B) according to the HUD Code[,]; and
             4422          (C) in one or more sections[,];
             4423          (ii) (A) which, in the traveling mode, is eight body feet or more in width or 40 body
             4424      feet or more in length[,]; or
             4425          (B) when erected on site, is 400 or more square feet[,]; and
             4426          (iii) which is built on a permanent chassis and designed to be used as a dwelling with
             4427      or without a permanent foundation when connected to the required utilities, and includes the
             4428      plumbing, heating, air-conditioning, and electrical systems.
             4429          (b) Manufactured homes constructed on or after June 15, 1976, shall be identifiable by


             4430      the manufacturer's data plate bearing the date the unit was manufactured and a HUD label
             4431      attached to the exterior of the home certifying the home was manufactured to HUD standards.
             4432          [(10)] (11) "Mobile home" means a transportable factory built housing unit built prior
             4433      to June 15, 1976, in accordance with a state mobile home code which existed prior to the HUD
             4434      Code.
             4435          [(11)] (12) "Modular unit" means a structure built from sections [which] that are
             4436      manufactured in accordance with the construction standards adopted pursuant to Section
             4437      [ 58-56-4 ] 61-2f-201 and transported to a building site, the purpose of which is for human
             4438      habitation, occupancy, or use.
             4439          [(12)] (13) "Opinion" means a written, nonbinding, and advisory statement issued by
             4440      the commission concerning an interpretation of the meaning of the codes or the application of
             4441      the codes in a specific circumstance issued in response to a specific request by a party to the
             4442      issue.
             4443          [(13)] (14) "State regulator" means an agency of the state [which] that is empowered to
             4444      engage in the regulation of construction, alteration, remodeling, building, repair, and other
             4445      activities subject to the codes adopted pursuant to this chapter.
             4446          [(14)] (15) "Unlawful conduct" is as defined in [Subsection 58-1-501 (1)] Subsections
             4447      61-2e-501 (21) through (24) and includes:
             4448          (a) engaging in the sale of factory built housing without being registered with the
             4449      division as a dealer, unless the sale is exempt under Section [ 58-56-16 ] 61-2f-210 ; and
             4450          (b) selling factory built housing within the state as a dealer without collecting and
             4451      remitting to the division the fee required by Section [ 58-56-17 ] 61-2f-211 .
             4452          [(15)] (16) "Unprofessional conduct" is as defined in [Subsection 58-1-501 (2)] Section
             4453      61-2e-502 and includes:
             4454          (a) any nondelivery of goods or services by a registered dealer which constitutes a
             4455      breach of contract by the dealer;
             4456          (b) the failure of a registered dealer to pay a subcontractor or supplier any amounts to
             4457      which that subcontractor or supplier is legally entitled; and
             4458          (c) any other activity which is defined as unprofessional conduct by division rule in
             4459      accordance with [the provisions of] Title 63, Chapter 46a, Utah Administrative Rulemaking
             4460      Act.


             4461          Section 71. Section 61-2f-104 , which is renumbered from Section 58-56-5 is
             4462      renumbered and amended to read:
             4463           [58-56-5].     61-2f-104. Building Code Commission.
             4464          (1) There is established a Uniform Building Code Commission to advise the division
             4465      with respect to the division's responsibilities in administering the codes under this chapter.
             4466          (2) The commission shall be appointed by the executive director who shall submit [his]
             4467      the executive director's nominations to the governor for confirmation or rejection. If a nominee
             4468      is rejected, alternative names shall be submitted until confirmation is received. Following
             4469      confirmation by the governor, the appointment shall be made.
             4470          (3) The commission shall consist of eleven members who shall be appointed in
             4471      accordance with the following:
             4472          (a) one member shall be from among candidates nominated by the Utah League of
             4473      Cities and Towns and the Utah Association of Counties;
             4474          (b) one member shall be a licensed building inspector employed by a political
             4475      subdivision of the state;
             4476          (c) one member shall be a licensed professional engineer;
             4477          (d) one member shall be a licensed architect;
             4478          (e) one member shall be a fire official;
             4479          (f) three members shall be contractors licensed by the state, of which one shall be a
             4480      general contractor, one an electrical contractor, and one a plumbing contractor;
             4481          (g) two members shall be from the general public and have no affiliation with the
             4482      construction industry or real estate development industry; and
             4483          (h) one member shall be from the Division of Facilities Construction Management,
             4484      Department of Administrative Services.
             4485          (4) (a) Except as required by Subsection (4)(b), as terms of current commission
             4486      members expire, the executive director shall appoint each new member or reappointed member
             4487      to a four-year term.
             4488          (b) Notwithstanding the requirements of Subsection (4)(a), the executive director shall,
             4489      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms
             4490      of commission members are staggered so that approximately half of the commission is
             4491      appointed every two years.


             4492          (5) When a vacancy occurs in the membership for any reason, the replacement shall be
             4493      appointed for the unexpired term.
             4494          (6) [No] A commission member may not serve more than two full terms, and no
             4495      commission member who ceases to serve may again serve on the commission until after the
             4496      expiration of two years from the date of cessation of service.
             4497          (7) A majority of the commission members shall constitute a quorum and may act on
             4498      behalf of the commission.
             4499          (8) (a) (i) [Members] A member who [are] is not a government [employees] employee
             4500      shall receive no compensation or benefits for [their] the member's services, but may receive per
             4501      diem and expenses incurred in the performance of the member's official duties at the rates
             4502      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             4503          (ii) [Members] A member may decline to receive per diem and expenses for [their] the
             4504      member's service.
             4505          (b) (i) [State] A state government officer and employee [members] member who [do]
             4506      does not receive salary, per diem, or expenses from [their] the member's agency for [their] the
             4507      member's service may receive per diem and expenses incurred in the performance of [their] the
             4508      member's official duties from the commission at the rates established by the Division of
             4509      Finance under Sections 63A-3-106 and 63A-3-107 .
             4510          (ii) [State] A state government officer and employee members may decline to receive
             4511      per diem and expenses for [their] the member's service.
             4512          (c) (i) [Local] A local government [members] member who [do] does not receive
             4513      salary, per diem, or expenses from the entity that [they represent for their] the member
             4514      represents for the member's service may receive per diem and expenses incurred in the
             4515      performance of [their] the member's official duties at the rates established by the Division of
             4516      Finance under Sections 63A-3-106 and 63A-3-107 .
             4517          (ii) [Local] A local government [members] member may decline to receive per diem
             4518      and expenses for [their] the member's service.
             4519          (9) (a) The commission shall annually designate one of its members to serve as chair of
             4520      the commission.
             4521          (b) The division shall provide a secretary to facilitate the function of the commission
             4522      and to record its actions and recommendations.


             4523          (10) The duties and responsibilities of the commission are to:
             4524          (a) recommend to the director the:
             4525          (i) adoption by rule of codes and amendments under Subsections [ 58-56-4 ]
             4526      61-2f-201 (2)(b) and (c); and
             4527          (ii) approval by rule of the codes referenced in Subsection [ 58-56-4 ] 61-2f-201 (4)(a);
             4528          (b) offer an opinion regarding the interpretation of or the application of any of the
             4529      codes adopted or approved under Section [ 58-56-4 ] 61-2f-201 upon a formal submission by a
             4530      party to the matter in question which submission must clearly state:
             4531          (i) the facts in question[,];
             4532          (ii) the specific code citation involved; and
             4533          (iii) the position taken by all parties;
             4534          (c) act as an appeals board as provided in Subsection [ 58-56-8 ] 61-2f-204 (3);
             4535          (d) establish advisory peer committees on either a standing or ad hoc basis to advise
             4536      the commission with respect to matters related to the codes described in Section [ 58-56-4 ]
             4537      61-2f-201 , including a committee to advise the commission regarding health matters related to
             4538      the plumbing code; and
             4539          (e) assist the division in overseeing code-related training in accordance with Section
             4540      [ 58-56-9 ] 61-2f-302 .
             4541          Section 72. Section 61-2f-201 , which is renumbered from Section 58-56-4 is
             4542      renumbered and amended to read:
             4543     
Part 2. Building Codes and Standards

             4544           [58-56-4].     61-2f-201. Definitions -- Adoption of building codes -- Amendments
             4545      -- Approval of other codes -- Exemptions.
             4546          (1) As used in this section:
             4547          (a) "agricultural use" means a use that relates to the tilling of soil and raising of crops,
             4548      or keeping or raising domestic animals;
             4549          (b) "not for human occupancy" means use of a structure for purposes other than
             4550      protection or comfort of human beings, but allows people to enter the structure for:
             4551          (i) maintenance and repair; and
             4552          (ii) the care of livestock, crops, or equipment intended for agricultural use which are
             4553      kept there; and


             4554          (c) "residential area" means land that is not used for an agricultural use and is:
             4555          (i) (A) within the boundaries of a city or town; and
             4556          (B) less than five contiguous acres;
             4557          (ii) (A) within a subdivision for which the county has approved a subdivision plat
             4558      under Title 17, Chapter 27, Part 8, Subdivisions; and
             4559          (B) less than two contiguous acres; or
             4560          (iii) not located in whole or in part in an agricultural protection area created under Title
             4561      17, Chapter 41, Agriculture Protection Area.
             4562          (2) (a) Subject to [the provisions of] Subsections (4) and (5), the following codes, each
             4563      of which must be promulgated by a nationally recognized code authority, shall be adopted, in
             4564      the manner described in Subsection (2)(b), as the construction codes [which] that the state and
             4565      each political subdivision of the state shall follow in the circumstances described in Subsection
             4566      (3):
             4567          (i) a building code;
             4568          (ii) the National Electrical Code promulgated by the National Fire Protection
             4569      Association;
             4570          (iii) a residential one and two family dwelling code;
             4571          (iv) a plumbing code;
             4572          (v) a mechanical code;
             4573          (vi) a fuel gas code;
             4574          (vii) an energy conservation code; and
             4575          (viii) a manufactured housing installation standard code.
             4576          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             4577      division, in collaboration with the commission, shall adopt by rule specific editions of the
             4578      codes described in Subsection (2)(a), and may adopt by rule successor editions of any adopted
             4579      code.
             4580          (c) The division, in collaboration with the commission, may, in accordance with
             4581      Section [ 58-56-7 ] 61-2f-203 , adopt amendments to the codes adopted under Subsection (2)(a),
             4582      to be applicable to the entire state or within one or more political subdivisions.
             4583          (3) Subject to [the provisions of] Subsections (4) and (5), the codes and amendments
             4584      adopted under Subsection (2) shall be followed when:


             4585          (a) new construction is involved; or
             4586          (b) the owner of an existing building, or the owner's agent, is voluntarily engaged in:
             4587          (i) the repair, renovation, remodeling, alteration, enlargement, rehabilitation,
             4588      conservation, or reconstruction of the building; or
             4589          (ii) changing the character or use of the building in a manner which increases the
             4590      occupancy loads, other demands, or safety risks of the building.
             4591          (4) (a) The division, in collaboration with the commission, has discretion to approve,
             4592      without adopting, certain codes in addition to those described in Subsection (2)(a), including
             4593      specific editions of the codes, for use by a compliance agency.
             4594          (b) If the applicable code is one which the division has approved under Subsection
             4595      (4)(a), a compliance agency has the discretion to:
             4596          (i) adopt an ordinance requiring removal, demolition, or repair of a building, according
             4597      to a code;
             4598          (ii) adopt, by ordinance or rule, a dangerous building code; or
             4599          (iii) adopt, by ordinance or rule, a building rehabilitation code.
             4600          (5) (a) Except in a residential area, a structure used solely in conjunction with
             4601      agriculture use, and not for human occupancy, is exempted from the permit requirements of
             4602      any code adopted by the division.
             4603          (b) Notwithstanding Subsection (5)(a), unless otherwise exempted, plumbing,
             4604      electrical, and mechanical permits may be required when that work is included in the structure.
             4605          Section 73. Section 61-2f-202 , which is renumbered from Section 58-56-6 is
             4606      renumbered and amended to read:
             4607           [58-56-6].     61-2f-202. Building codes -- Division duties and responsibilities.
             4608          (1) The division shall administer the codes adopted or approved under Section
             4609      [ 58-56-4 ] 61-2f-201 pursuant to this chapter, but shall have no responsibility or duty to conduct
             4610      inspections to determine compliance with the codes, issue permits, or assess building permit
             4611      fees.
             4612          (2) Administration of the codes adopted or approved under Section [ 58-56-4 ]
             4613      61-2f-201 by the division shall include:
             4614          (a) receiving recommendations from the commission and thereafter adopting by rule
             4615      the editions of the codes and amendments to the codes under Subsections [ 58-56-4 ]


             4616      61-2f-201 (2)(b) and (c);
             4617          (b) receiving recommendations from the commission and thereafter approving by rule
             4618      the code editions referenced in Subsection [ 58-56-4 ] 61-2f-201 (4)(a);
             4619          (c) maintaining and publishing for reference on a current basis the adopted
             4620      amendments to the codes under Subsection [ 58-56-4 ] 61-2f-201 (2)(c); and
             4621          (d) receiving requests for amendments and opinions from the commission, scheduling
             4622      appropriate hearings and publishing the amendments to the codes and the opinions of the
             4623      commission with respect to interpretation and application of the codes.
             4624          Section 74. Section 61-2f-203 , which is renumbered from Section 58-56-7 is
             4625      renumbered and amended to read:
             4626           [58-56-7].     61-2f-203. Code amendments -- Commission recommendations --
             4627      Division duties and responsibilities.
             4628          (1) The division, with the commission, shall establish by rule the procedure and
             4629      manner under which requests for amendments to codes under Subsection [ 58-56-4 ]
             4630      61-2f-201 (2)(c) shall be:
             4631          (a) filed with the division; and
             4632          (b) recommended or declined for adoption.
             4633          (2) The division shall accept from any local regulators, state regulators, state agencies
             4634      involved with the construction and design of buildings, the contractors, plumbers, or
             4635      electricians licensing boards, or from recognized construction-related associations a request for
             4636      amendment to the codes under Subsection [ 58-56-4 ] 61-2f-201 (2)(c).
             4637          (3) The division may make recommendations to the commission for amendments to
             4638      codes under Subsection [ 58-56-4 ] 61-2f-201 (2)(c). The commission may also consider
             4639      amendments on its own initiative.
             4640          (4) On May 15 and November 15 of each calendar year, or the first government
             4641      working day thereafter if either date falls on a weekend or government holiday, the division
             4642      shall convene a public hearing, as a part of the rulemaking process, before the commission
             4643      concerning requests for amendment of the codes, recommended by the division and
             4644      commission to be adopted by rule. The hearing shall be conducted in accordance with the rules
             4645      of the commission.
             4646          (5) Within 15 days following completion of the hearing under Subsection (4), the


             4647      commission shall provide to the division a written recommendation concerning each
             4648      amendment.
             4649          (6) The division shall consider the recommendations and promulgate amendments by
             4650      rule in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act and as
             4651      prescribed by the director.
             4652          (7) The decision of the division to accept or reject the recommendation of the
             4653      commission shall be made within 15 days after receipt of the recommendation.
             4654          (8) All decisions of the division pertaining to adoption of a code edition or
             4655      amendments to any code, which are contrary to recommendations of the commission, may be
             4656      overridden by a two-thirds vote of the commission according to a procedure to be established
             4657      by rule.
             4658          (9) (a) Amendments with statewide application:
             4659          (i) shall be effective on the January 1 or July 1 following the public hearing or as soon
             4660      after that date as the requirements of Title 63, Chapter 46a, Utah Administrative Rulemaking
             4661      Act, are met; or
             4662          (ii) may be effective prior to the dates in Subsection (9)(a)(i) if designated by the
             4663      division and the commission as necessary for the public health, safety, and welfare.
             4664          (b) Amendments with local application only shall be effective on a date to be
             4665      determined by the division and the commission.
             4666          (c) In making rules required by this chapter, the division shall comply with the
             4667      provisions of Title 63, Chapter 46a, Utah Administrative Rulemaking Act. The provisions of
             4668      that chapter shall have control over this section in case of any conflict.
             4669          Section 75. Section 61-2f-204 , which is renumbered from Section 58-56-8 is
             4670      renumbered and amended to read:
             4671           [58-56-8].     61-2f-204. Compliance with codes -- Responsibility for inspections
             4672      -- Appeals.
             4673          (1) The responsibility for inspection of construction projects and enforcement of
             4674      compliance with provisions of the codes shall be with the compliance agency having
             4675      jurisdiction over the project and the applicable codes.
             4676          (2) A finding by a compliance agency that a licensed contractor, electrician, or plumber
             4677      has materially violated the provisions of a code in a manner to jeopardize the public health,


             4678      safety, and welfare and failed to comply with corrective orders of the compliance agency shall
             4679      be furnished in writing to the division by the compliance agency. It is the responsibility of the
             4680      compliance agency to conduct a primary investigation to determine that, in fact, there has been
             4681      a material violation of the provisions of the code jeopardizing the public interest and provide
             4682      the report of investigation to the division.
             4683          (3) (a) Each compliance agency shall establish a method of appeal by which a person
             4684      disputing the application and interpretation of a code may appeal and receive a timely review of
             4685      the disputed issues in accordance with the codes adopted or approved under Section [ 58-56-4 ]
             4686      61-2f-201 .
             4687          (b) If a compliance agency refuses to establish a method of appeal, the commission
             4688      shall act as the appeals board and conduct a hearing within 45 days.
             4689          (c) The findings of the commission shall be binding.
             4690          (d) An appeals board established under this section shall have no authority to:
             4691          (i) interpret the administrative provisions of the codes [nor shall the appeals board be
             4692      empowered to]; or
             4693          (ii) waive requirements of the codes.
             4694          Section 76. Section 61-2f-205 , which is renumbered from Section 58-56-11 is
             4695      renumbered and amended to read:
             4696           [58-56-11].     61-2f-205. Standards for specialized buildings.
             4697          (1) (a) This chapter [shall] may not be implied to repeal or otherwise affect authorities:
             4698          (i) granted to a state agency to make or administer standards for specialized buildings,
             4699      as provided in:
             4700          (A) Title 26, Chapter 21, Health Care Facility Licensure and Inspection Act[,];
             4701          (B) Title 26, Chapter 39, Utah Child Care Licensing Act[,];
             4702          (C) Title 62A, Chapter 2, Licensure of Programs and Facilities[,]; and
             4703          (D) Title 64, Chapter 13, Department of Corrections - State Prison[,]; or [authorities]
             4704          (ii) granted to a state agency by statute to make or administer [other] special standards
             4705      other than the standards listed in Subsection (1)(a)(i).
             4706          (b) In the event of a conflict between [such] the special standards described in
             4707      Subsection (1)(a) and codes adopted pursuant to this chapter, the special standards shall
             4708      prevail.


             4709          (2) The provisions of this chapter do not apply to the administration of the statutes
             4710      described in Subsection (1).
             4711          Section 77. Section 61-2f-206 , which is renumbered from Section 58-56-12 is
             4712      renumbered and amended to read:
             4713           [58-56-12].     61-2f-206. Factory built housing units.
             4714          (1) (a) Manufactured homes constructed, sold, or set-up in the state shall be
             4715      constructed in accordance with the HUD code.
             4716          (b) Manufactured homes set-up in the state shall be installed in accordance with the
             4717      manufactured housing installation standard code referred to in Section [ 58-56-4 ] 61-2f-201 .
             4718          (c) The authority and responsibility for the issuance of building permits for the
             4719      modification or set-up of manufactured homes within a political subdivision of the state shall
             4720      be with the local regulator within that political subdivision.
             4721          (d) The inspection of modifications to or the set-up of manufactured homes shall be
             4722      conducted and approvals given by the local regulator within the political subdivision in which
             4723      the set-up takes place.
             4724          (2) (a) [Mobile homes] A mobile home sold or set-up in the state shall be constructed
             4725      in accordance with the mobile home construction code in existence in the state in which the
             4726      mobile home was constructed at the time the mobile home was constructed.
             4727          (b) Mobile homes set-up in the state shall be installed in accordance with the
             4728      manufactured housing installation standard code referred to in Section [ 58-56-4 ] 61-2f-201 .
             4729          (c) The authority and responsibility for the issuance of building permits for the
             4730      modification of or set-up of mobile homes within a political subdivision of the state shall be
             4731      with the local regulator within that political subdivision.
             4732          (d) The inspection of modification to or the set-up of mobile homes shall be conducted
             4733      and approvals given by the local regulator within the political subdivision in which the set-up
             4734      takes place.
             4735          Section 78. Section 61-2f-207 , which is renumbered from Section 58-56-13 is
             4736      renumbered and amended to read:
             4737           [58-56-13].     61-2f-207. Modular units.
             4738          Modular unit construction, set-up, issuance of permits for construction or set-up, and
             4739      set-up shall be in accordance with the following:


             4740          (1) construction and set-up shall be in accordance with the building standards adopted
             4741      pursuant to Section [ 58-56-4 ] 61-2f-201 , or equivalent standards adopted by rule;
             4742          (2) the responsibility and authority for plan review and issuance of permits for
             4743      construction, modification, or set-up shall be that of the local regulator of the political
             4744      subdivision in which the modular unit is to be set-up;
             4745          (3) the inspection of the construction, modification of, or set-up of a modular unit to
             4746      determine conformance with the provisions of this chapter and the issuance of approvals shall
             4747      be the responsibility of the local regulator in the political subdivision in which the modular unit
             4748      is to be set-up or is set-up; and
             4749          (4) nothing in this section shall preclude a local regulator from contracting with a
             4750      qualified third party for the inspection or plan review provided in this section, or the state from
             4751      entering into an interstate compact for third party inspection of the construction of modular
             4752      units.
             4753          Section 79. Section 61-2f-208 , which is renumbered from Section 58-56-14 is
             4754      renumbered and amended to read:
             4755           [58-56-14].     61-2f-208. Modification of factory built housing units and modular
             4756      units.
             4757          (1) Any modification to factory built housing units shall be made in accordance with
             4758      [the following:] this section.
             4759          (a) Prior to set-up, modification to a manufactured home or mobile home prior to
             4760      installation or set-up of the unit for habitation shall be made in accordance with the HUD code.
             4761          (b) After set-up:
             4762          (i) modification to a manufactured home or mobile home after installation or set-up of
             4763      the unit for habitation, which modification does not include the addition of any space to the
             4764      existing unit or the attachment of any structure to the existing unit shall be made in accordance
             4765      with the HUD code; and
             4766          (ii) modification to a manufactured home or mobile home after installation or set-up of
             4767      the unit for habitation, which modification includes the addition of any space to the existing
             4768      unit or the attachment of any structure to the unit shall be made as follows:
             4769          (A) modifications to the existing unit shall be in accordance with the HUD code; and
             4770          (B) additional structure outside of the existing unit shall be in accordance with the


             4771      Utah Uniform Building Standards Act.
             4772          (2) Any modification to modular housing units shall be made in accordance with the
             4773      Utah Uniform Building Standards Act.
             4774          Section 80. Section 61-2f-209 , which is renumbered from Section 58-56-15 is
             4775      renumbered and amended to read:
             4776           [58-56-15].     61-2f-209. Factory built housing and modular units -- Division
             4777      responsibility -- Unlawful conduct.
             4778          (1) The division:
             4779          (a) shall maintain current information on the HUD code and the manufactured housing
             4780      installation standard code referred to in Section [ 58-56-4 ] 61-2f-201 and will provide at
             4781      reasonable cost the information to compliance agencies, local regulators, or state regulators
             4782      requesting such information;
             4783          (b) shall provide qualified personnel to advise compliance agencies, local regulators,
             4784      and state regulators regarding the standards for construction and set-up, construction and set-up
             4785      inspection, and additions or modifications to factory built housing;
             4786          (c) is designated as the state administrative agency for purposes under [the provisions
             4787      of] the HUD code;
             4788          (d) may:
             4789          (i) inspect the work of modular unit manufacturers in the state during the construction
             4790      process to determine compliance of the manufacturer with the Utah Uniform Building Standard
             4791      Act for those units to be installed within the state; and
             4792          (ii) upon a finding of substantive deficiency, issue a corrective order to the
             4793      manufacturer with a copy to the local regulator in the state's political subdivision in which the
             4794      unit is to be installed;
             4795          (e) shall have rights of entry and inspection as specified under the HUD Code; and
             4796          (f) shall implement by rule as required by the HUD Code:
             4797          (i) a dispute resolution program; and
             4798          (ii) a continuing education requirement for manufactured housing installation
             4799      contractors.
             4800          (2) The division may assess civil penalties payable to the state for violation of the
             4801      HUD Code in an amount identical to those set forth in Section 611 of the National


             4802      Manufactured Housing Construction and Safety Standards Act of 1974, 42 U.S.C. Sec. 5410.
             4803          (3) The state may impose criminal sanctions for violations of the HUD Code identical
             4804      to those set forth in Section 611 of the National Manufactured Housing Construction and
             4805      Safety Standards Act of 1974, 42 U.S.C. Sec. 5410, provided that if the criminal sanction is a
             4806      fine, the fine shall be payable to the state.
             4807          Section 81. Section 61-2f-210 , which is renumbered from Section 58-56-16 is
             4808      renumbered and amended to read:
             4809           [58-56-16].     61-2f-210. Registration of dealers -- Bonding requirements --
             4810      Renewal -- Exemptions -- Discipline.
             4811          (1) Each person engaged in the sale of factory built housing in the state, except as
             4812      provided in Subsection (4), shall register with the division as a dealer.
             4813          (2) Each applicant for registration under this section shall:
             4814          (a) submit an application in a form prescribed by the division;
             4815          (b) pay a fee determined by the department under Section 63-38-3.2 ; and
             4816          (c) provide the division with a registration bond in accordance with rules established
             4817      by the division.
             4818          (3) (a) The division shall issue each registration under this section in accordance with a
             4819      two-year renewal cycle established by rule.
             4820          (b) The division may by rule extend or shorten a renewal cycle by as much as one year
             4821      to stagger the renewal cycles it administers.
             4822          (c) Each registration under this section automatically expires on the expiration date on
             4823      the certificate of registration unless the registrant renews it in accordance with Section
             4824      58-1-308 .
             4825          (4) Subsection (1) does not apply to:
             4826          (a) a person not regularly engaged in the sale of factory built housing who is selling a
             4827      unit [he] the person owns for [his] the person's own account;
             4828          (b) a principal broker licensed under Title 61, Chapter 2, Division of Real Estate; or
             4829          (c) a sales agent or associate broker licensed under Title 61, Chapter 2, Division of
             4830      Real Estate, who sells factory built housing as an agent for, and under the supervision, of the
             4831      licensed principal broker with whom he is affiliated.
             4832          (5) Grounds for refusing to issue a registration, for refusing to renew a registration, for


             4833      revoking, suspending, restricting, or placing on probation a registration, for issuing a public or
             4834      private reprimand to a registrant, and for issuing a cease and desist order shall be in accordance
             4835      with Section [ 58-1-401 ] 61-2f-401 .
             4836          Section 82. Section 61-2f-211 , which is renumbered from Section 58-56-17 is
             4837      renumbered and amended to read:
             4838           [58-56-17].     61-2f-211. Fees on sale -- Escrow agents -- Sales tax.
             4839          (1) (a) Each dealer shall collect and remit a fee of $75 to the division for each factory
             4840      built home the dealer sells that has not, as of the date of the sale, been permanently affixed to
             4841      real property and converted to real property as provided in Section 70D-1-20 .
             4842          (b) The fee described in Subsection (1)(a) shall be:
             4843          (i) payable within 30 days following the close of each calendar quarter for all units sold
             4844      during that calendar quarter[. The fee shall be]; and
             4845          (ii) deposited in a restricted account as provided in Section [ 58-56-17.5 ] 61-2f-212 .
             4846          (2) Any principal real estate broker, associate broker, or sales agent exempt from
             4847      registration as a dealer under Section [ 58-56-16 ] 61-2f-210 who sells a factory built home that
             4848      has not been permanently affixed to real property shall close the sale only through a qualified
             4849      escrow agent in this state registered with:
             4850          (a) the Insurance Department; or
             4851          (b) the Department of Financial Institutions.
             4852          (3) Each escrow agent through which a sale is closed under Subsection (2) shall remit
             4853      all required sales tax to the state.
             4854          Section 83. Section 61-2f-212 , which is renumbered from Section 58-56-17.5 is
             4855      renumbered and amended to read:
             4856           [58-56-17.5].     61-2f-212. Factory Built Housing Fees Restricted Account.
             4857          (1) There is created within the General Fund a restricted account known as "Factory
             4858      Built Housing Fees Account."
             4859          (2) (a) The restricted account shall be funded from the fees the dealer collects and
             4860      remits to the division for each factory built home the dealer sells as provided in Subsection
             4861      [ 58-56-17 ] 61-2f-211 (1).
             4862          (b) The division shall deposit all monies collected under Subsection [ 58-56-17 ]
             4863      61-2f-211 (1) in the restricted account.


             4864          (c) The restricted account shall be used to pay for education and enforcement of the
             4865      Utah Uniform Building Standards Act, including:
             4866          (i) investigations and administrative actions; and
             4867          (ii) the funding of additional employees to the amount of the legislative appropriation.
             4868          (d) The restricted account may accrue interest which shall be deposited into the
             4869      restricted account.
             4870          Section 84. Section 61-2f-301 , which is renumbered from Section 58-56-8.5 is
             4871      renumbered and amended to read:
             4872     
Part 3. Licensing of Inspectors

             4873           [58-56-8.5].     61-2f-301. Building Inspector Licensing Board.
             4874          (1) There is created a Building Inspector Licensing Board consisting of four building
             4875      inspectors and one member of the general public.
             4876          (2) The board shall be appointed and serve [in accordance with Section 58-1-201 ] as
             4877      provided in this Subsection (2).
             4878          (a) The executive director shall appoint the members of the board. In appointing these
             4879      members, the executive director shall give consideration to recommendations by members of
             4880      the respective occupations and professions and by their organizations.
             4881          (b) The names of all persons appointed to the board shall be submitted to the governor
             4882      for confirmation or rejection. If an appointee is rejected by the governor, the executive director
             4883      shall appoint another person in the same manner as set forth in Subsection (2)(a).
             4884          (c) (i) Except as required by Subsection (2)(c)(ii), as terms of current board members
             4885      expire, the executive director shall appoint each new member or reappointed member to a
             4886      four-year term.
             4887          (ii) Notwithstanding the requirements of Subsection (2)(c)(i), the executive director
             4888      shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the
             4889      terms of board members are staggered so that approximately half of the board is appointed
             4890      every two years.
             4891          (d) A board member may not serve more than two consecutive terms, and a board
             4892      member who ceases to serve on a board may not serve again on that board until after the
             4893      expiration of a two-year period beginning from that cessation of service.
             4894          (e) (i) When a vacancy occurs in the membership for any reason, the replacement shall


             4895      be appointed for the unexpired term.
             4896          (ii) After filling that term, the replacement member may be appointed for only one
             4897      additional full term.
             4898          (f) If a board member fails or refuses to fulfill the responsibilities and duties of a board
             4899      member, including the attendance at board meetings, the executive director with the approval
             4900      of the board may remove the board member and replace the member in accordance with this
             4901      section.
             4902          (g) A majority of the board members constitutes a quorum. A quorum is sufficient
             4903      authority for the board to act.
             4904          (h) (i) (A) A member who is not a government employee shall receive no
             4905      compensation or benefits for the member's services, but may receive per diem and expenses
             4906      incurred in the performance of the member's official duties at the rates established by the
             4907      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             4908          (B) A members may decline to receive per diem and expenses for the member's
             4909      service.
             4910          (ii) (A) A state government officer and employee member who does not receive salary,
             4911      per diem, or expenses from the member's agency for the member's service may receive per
             4912      diem and expenses incurred in the performance of the member's official duties from the board
             4913      at the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             4914          (B) A state government officer and employee member may decline to receive per diem
             4915      and expenses for the member's service.
             4916          (i) Each board shall annually designate one of its members to serve as chair for a
             4917      one-year period.
             4918          (j) A board member may not be a member of the faculty of or have any financial
             4919      interest in any vocational or professional college or school that provides continuing education
             4920      to any licensee if that continuing education is required by statute or rule.
             4921          (3) (a) The duties and responsibilities of the board shall be in accordance with
             4922      [Sections 58-1-202 through 58-1-203 . In addition, the board shall designate] this Subsection
             4923      (3).
             4924          (b) The duties, functions, and responsibilities of the board include:
             4925          (i) recommending to the director appropriate rules;


             4926          (ii) recommending to the director policy and budgetary matters;
             4927          (iii) approving and establishing a passing score for applicant examinations;
             4928          (iv) screening applicants and recommending licensing, renewal, reinstatement, and
             4929      relicensure actions to the director in writing;
             4930          (v) assisting the director in establishing standards of supervision for students or
             4931      persons in training to become qualified to obtain a license in the occupation or profession it
             4932      represents;
             4933          (vi) acting as presiding officer in conducting hearings associated with adjudicative
             4934      proceedings and in issuing recommended orders when so designated by the director; and
             4935          (vii) designating one of its members on a permanent or rotating basis to:
             4936          [(a)] (A) assist the division in reviewing complaints concerning the unlawful or
             4937      unprofessional conduct of a licensee; and
             4938          [(b)] (B) advise the division in its investigation of these complaints.
             4939          (c) The following duties, functions, and responsibilities of the division shall be
             4940      performed by the division with the collaboration and assistance of the board:
             4941          (i) defining which schools, colleges, universities, departments of universities, or other
             4942      institutions of learning are reputable and in good standing with the division;
             4943          (ii) prescribing license qualifications;
             4944          (iii) prescribing rules governing applications for licenses;
             4945          (iv) providing for a fair and impartial method of examination of applicants;
             4946          (v) defining unprofessional conduct, by rule, to supplement the definitions under this
             4947      chapter or other licensing chapters;
             4948          (vi) establishing advisory peer committees to the board and prescribing their scope of
             4949      authority; and
             4950          (vii) establishing conditions for reinstatement and renewal of licenses.
             4951          (4) A board member who has, under Subsection (3), reviewed a complaint or advised
             4952      in its investigation is disqualified from participating with the board when the board serves as a
             4953      presiding officer of an administrative proceeding concerning the complaint.
             4954          Section 85. Section 61-2f-302 , which is renumbered from Section 58-56-9 is
             4955      renumbered and amended to read:
             4956           [58-56-9].     61-2f-302. Qualifications of inspectors -- Contract for inspection


             4957      services -- Surcharge for education program.
             4958          (1) All inspectors employed by a local regulator, state regulator, or compliance agency
             4959      to enforce provisions of the codes adopted or approved pursuant to this chapter shall:
             4960          (a) (i) meet minimum qualifications as established by the division in collaboration with
             4961      the commission [or];
             4962          (ii) be certified by a nationally recognized organization which promulgates codes
             4963      adopted under this chapter[,]; or
             4964          (iii) pass an examination developed by the division in collaboration with the
             4965      commission;
             4966          (b) be currently licensed by the division as meeting those minimum qualifications; and
             4967          (c) be subject to revocation or suspension of their license or may be placed on
             4968      probation if found guilty of unlawful or unprofessional conduct.
             4969          (2) A local regulator, state regulator, or compliance agency may contract for the
             4970      services of a licensed inspector not regularly employed by the regulator or agency.
             4971          (3) (a) The division shall use the monies received in Subsection (4) to provide
             4972      education regarding the codes and code amendments adopted or approved under Section
             4973      [ 58-56-4 ] 61-2f-201 to:
             4974          (i) building inspectors; and
             4975          (ii) individuals engaged in construction-related trades or professions.
             4976          (b) All funding available for the building inspector's education program shall be
             4977      nonlapsing.
             4978          (4) Each compliance agency shall charge a 1% surcharge on all building permits issued
             4979      and shall transmit 80% of the amount collected to the division to be utilized by the division to
             4980      fulfill the requirements of Subsection (3). The surcharge shall be deposited as a dedicated
             4981      credit.
             4982          Section 86. Section 63-2-302 is amended to read:
             4983           63-2-302. Private records.
             4984          (1) The following records are private:
             4985          (a) records concerning an individual's eligibility for unemployment insurance benefits,
             4986      social services, welfare benefits, or the determination of benefit levels;
             4987          (b) records containing data on individuals describing medical history, diagnosis,


             4988      condition, treatment, evaluation, or similar medical data;
             4989          (c) records of publicly funded libraries that when examined alone or with other records
             4990      identify a patron;
             4991          (d) records received or generated for a Senate or House Ethics Committee concerning
             4992      any alleged violation of the rules on legislative ethics, prior to the meeting, and after the
             4993      meeting, if the ethics committee meeting was closed to the public;
             4994          (e) records received or generated for a Senate confirmation committee concerning
             4995      character, professional competence, or physical or mental health of an individual:
             4996          (i) if prior to the meeting, the chair of the committee determines release of the records:
             4997          (A) reasonably could be expected to interfere with the investigation undertaken by the
             4998      committee; or
             4999          (B) would create a danger of depriving a person of a right to a fair proceeding or
             5000      impartial hearing; and
             5001          (ii) after the meeting, if the meeting was closed to the public;
             5002          (f) employment records concerning a current or former employee of, or applicant for
             5003      employment with, a governmental entity that would disclose that individual's home address,
             5004      home telephone number, Social Security number, insurance coverage, marital status, or payroll
             5005      deductions;
             5006          (g) records or parts of records under Section 63-2-302.5 that a current or former
             5007      employee identifies as private according to the requirements of that section;
             5008          (h) that part of a record indicating a person's Social Security number or federal
             5009      employer identification number if provided under Section 31A-23a-104 , 31A-25-202 ,
             5010      31A-26-202 , 58-1-301 , 61-1-4 , [or] 61-2-6 , or 61-2e-301 ;
             5011          (i) that part of a voter registration record identifying a voter's driver license or
             5012      identification card number, Social Security number, or last four digits of the Social Security
             5013      number;
             5014          (j) a record that:
             5015          (i) contains information about an individual;
             5016          (ii) is voluntarily provided by the individual; and
             5017          (iii) goes into an electronic database that:
             5018          (A) is designated by and administered under the authority of the Chief Information


             5019      Officer; and
             5020          (B) acts as a repository of information about the individual that can be electronically
             5021      retrieved and used to facilitate the individual's online interaction with a state agency;
             5022          (k) information provided to the Commissioner of Insurance under:
             5023          (i) Subsection 31A-23a-115 (2)(a); or
             5024          (ii) Subsection 31A-23a-302 (3); and
             5025          (l) information obtained through a criminal background check under Title 11, Chapter
             5026      40, Criminal Background Checks by Political Subdivisions Operating Water Systems.
             5027          (2) The following records are private if properly classified by a governmental entity:
             5028          (a) records concerning a current or former employee of, or applicant for employment
             5029      with a governmental entity, including performance evaluations and personal status information
             5030      such as race, religion, or disabilities, but not including records that are public under Subsection
             5031      63-2-301 (1)(b) or 63-2-301 (2)(o), or private under Subsection (1)(b);
             5032          (b) records describing an individual's finances, except that the following are public:
             5033          (i) records described in Subsection 63-2-301 (1);
             5034          (ii) information provided to the governmental entity for the purpose of complying with
             5035      a financial assurance requirement; or
             5036          (iii) records that must be disclosed in accordance with another statute;
             5037          (c) records of independent state agencies if the disclosure of those records would
             5038      conflict with the fiduciary obligations of the agency;
             5039          (d) other records containing data on individuals the disclosure of which constitutes a
             5040      clearly unwarranted invasion of personal privacy; and
             5041          (e) records provided by the United States or by a government entity outside the state
             5042      that are given with the requirement that the records be managed as private records, if the
             5043      providing entity states in writing that the record would not be subject to public disclosure if
             5044      retained by it.
             5045          (3) (a) As used in this Subsection (3), "medical records" means medical reports,
             5046      records, statements, history, diagnosis, condition, treatment, and evaluation.
             5047          (b) Medical records in the possession of the University of Utah Hospital, its clinics,
             5048      doctors, or affiliated entities are not private records or controlled records under Section
             5049      63-2-303 when the records are sought:


             5050          (i) in connection with any legal or administrative proceeding in which the patient's
             5051      physical, mental, or emotional condition is an element of any claim or defense; or
             5052          (ii) after a patient's death, in any legal or administrative proceeding in which any party
             5053      relies upon the condition as an element of the claim or defense.
             5054          (c) Medical records are subject to production in a legal or administrative proceeding
             5055      according to state or federal statutes or rules of procedure and evidence as if the medical
             5056      records were in the possession of a nongovernmental medical care provider.
             5057          Section 87. Section 63-38-3.2 is amended to read:
             5058           63-38-3.2. Fees -- Adoption, procedure, and approval -- Establishing and
             5059      assessing fees without legislative approval.
             5060          (1) As used in this section:
             5061          (a) (i) "Agency" means each department, commission, board, council, agency,
             5062      institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
             5063      unit, bureau, panel, or other administrative unit of the state.
             5064          (ii) "Agency" does not mean the Legislature or its committees.
             5065          (b) "Fee agency" means any agency that is authorized to establish regulatory fees.
             5066          (c) "Fee schedule" means the complete list of regulatory fees charged by a fee agency
             5067      and the amount of those fees.
             5068          (d) "Regulatory fees" means fees established for licensure, registration, or certification.
             5069          (2) Each fee agency shall:
             5070          (a) adopt a schedule of fees assessed for services provided by the fee agency that are:
             5071          (i) reasonable, fair, and reflect the cost of services provided; and
             5072          (ii) established according to a cost formula determined by the director of the
             5073      Governor's Office of Planning and Budget and the director of the Division of Finance in
             5074      conjunction with the agency seeking to establish the regulatory fee;
             5075          (b) conduct a public hearing on any proposed regulatory fee and increase or decrease
             5076      the proposed regulatory fee based upon the results of the public hearing;
             5077          (c) except as provided in Subsection (6), submit the fee schedule to the Legislature as
             5078      part of the agency's annual appropriations request;
             5079          (d) where necessary, modify the fee schedule to implement the Legislature's actions;
             5080      and


             5081          (e) deposit all regulatory fees collected under the fee schedule into the General Fund.
             5082          (3) A fee agency may not:
             5083          (a) set regulatory fees by rule; or
             5084          (b) charge or collect any regulatory fee without approval by the Legislature unless the
             5085      fee agency has complied with the procedures and requirements of Subsection (5).
             5086          (4) The Legislature may approve, increase or decrease and approve, or reject any
             5087      regulatory fee submitted to it by a fee agency.
             5088          (5) (a) After the public hearing required by this section, a fee agency may establish and
             5089      assess regulatory fees without legislative approval if:
             5090          (i) the Legislature creates a new program that is to be funded by regulatory fees to be
             5091      set by the Legislature; and
             5092          (ii) the new program's effective date is before the Legislature's next annual general
             5093      session; or
             5094          (iii) the Division of [Occupational and Professional Licensing] Real Estate makes a
             5095      special assessment against qualified beneficiaries under the Residence Lien Restriction and
             5096      Lien Recovery Fund Act as provided in Subsection 38-11-206 (1).
             5097          (b) Each fee agency shall submit its fee schedule or special assessment amount to the
             5098      Legislature for its approval at a special session, if allowed in the governor's call, or at the next
             5099      annual general session of the Legislature, whichever is sooner.
             5100          (c) Unless the fee schedule is approved by the Legislature, the fee agency may not
             5101      collect a regulatory fee set according to this subsection after the adjournment of the annual
             5102      general session following the session that established the new program.
             5103          (6) (a) Each fee agency that wishes to increase any regulatory fee by 5% or more shall
             5104      obtain legislative approval for the fee increase as provided in this subsection before assessing
             5105      the new regulatory fee.
             5106          (b) Each fee agency that wishes to increase any regulatory fee by 5% or more shall
             5107      submit to the governor as part of the agency's annual appropriation request a list that identifies:
             5108          (i) the title or purpose of the regulatory fee;
             5109          (ii) the present amount of the regulatory fee;
             5110          (iii) the proposed new amount of the regulatory fee;
             5111          (iv) the percent that the regulatory fee will have increased if the Legislature approves


             5112      the higher fee; and
             5113          (v) the reason for the increase in the regulatory fee.
             5114          (c) (i) The governor may review and approve, modify and approve, or reject the
             5115      regulatory fee increases.
             5116          (ii) The governor shall transmit the list required by Subsection (6)(b), with any
             5117      modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
             5118          (d) Bills approving any regulatory fee increases of 5% or more shall be filed before the
             5119      beginning of the Legislature's annual general session, if possible.
             5120          Section 88. Section 63-46b-1 is amended to read:
             5121           63-46b-1. Scope and applicability of chapter.
             5122          (1) Except as set forth in Subsection (2), and except as otherwise provided by a statute
             5123      superseding provisions of this chapter by explicit reference to this chapter, the provisions of
             5124      this chapter apply to every agency of the state and govern:
             5125          (a) state agency action that determines the legal rights, duties, privileges, immunities,
             5126      or other legal interests of an identifiable person, including agency action to grant, deny, revoke,
             5127      suspend, modify, annul, withdraw, or amend an authority, right, or license; and
             5128          (b) judicial review of the action.
             5129          (2) This chapter does not govern:
             5130          (a) the procedure for making agency rules, or judicial review of the procedure or rules;
             5131          (b) the issuance of a notice of a deficiency in the payment of a tax, the decision to
             5132      waive a penalty or interest on taxes, the imposition of and penalty or interest on taxes, or the
             5133      issuance of a tax assessment, except that this chapter governs an agency action commenced by
             5134      a taxpayer or by another person authorized by law to contest the validity or correctness of the
             5135      action;
             5136          (c) state agency action relating to extradition, to the granting of a pardon or parole, a
             5137      commutation or termination of a sentence, or to the rescission, termination, or revocation of
             5138      parole or probation, to the discipline of, resolution of a grievance of, supervision of,
             5139      confinement of, or the treatment of an inmate or resident of a correctional facility, the Utah
             5140      State Hospital, the Utah State Developmental Center, or a person in the custody or jurisdiction
             5141      of the Division of Substance Abuse and Mental Health, or a person on probation or parole, or
             5142      judicial review of the action;


             5143          (d) state agency action to evaluate, discipline, employ, transfer, reassign, or promote a
             5144      student or teacher in a school or educational institution, or judicial review of the action;
             5145          (e) an application for employment and internal personnel action within an agency
             5146      concerning its own employees, or judicial review of the action;
             5147          (f) the issuance of a citation or assessment under Title 34A, Chapter 6, Utah
             5148      Occupational Safety and Health Act, [and] Title 58, Chapter 3a, Architect Licensing Act,
             5149      Chapter 11a, Cosmetologist/Barber, Esthetician, Electrologist, and Nail Technician Licensing
             5150      Act, Chapter 17b, Pharmacy Practice Act, Chapter 22, Professional Engineers and Professional
             5151      Land Surveyor Licensing Act, Chapter 53, Landscape Architects Licensing Act, [Chapter 55,
             5152      Utah Construction Trades Licensing Act,] Chapter 63, Security Personnel Licensing Act, [and]
             5153      Chapter 76, Professional Geologist Licensing Act, and Title 61, Chapter 2e, Utah Construction
             5154      Trades Licensing Act, except that this chapter governs an agency action commenced by the
             5155      employer, licensee, or other person authorized by law to contest the validity or correctness of
             5156      the citation or assessment;
             5157          (g) state agency action relating to management of state funds, the management and
             5158      disposal of school and institutional trust land assets, and contracts for the purchase or sale of
             5159      products, real property, supplies, goods, or services by or for the state, or by or for an agency of
             5160      the state, except as provided in those contracts, or judicial review of the action;
             5161          (h) state agency action under Title 7, Chapter 1, Article 3, Powers and Duties of
             5162      Commissioner of Financial Institutions, Title 7, Chapter 2, Possession of Depository Institution
             5163      by Commissioner, Title 7, Chapter 19, Acquisition of Failing Depository Institutions or
             5164      Holding Companies, and Title 63, Chapter 30, Utah Governmental Immunity Act, or judicial
             5165      review of the action;
             5166          (i) the initial determination of a person's eligibility for unemployment benefits, the
             5167      initial determination of a person's eligibility for benefits under Title 34A, Chapter 2, Workers'
             5168      Compensation Act, and Title 34A, Chapter 3, Utah Occupational Disease Act, or the initial
             5169      determination of a person's unemployment tax liability;
             5170          (j) state agency action relating to the distribution or award of a monetary grant to or
             5171      between governmental units, or for research, development, or the arts, or judicial review of the
             5172      action;
             5173          (k) the issuance of a notice of violation or order under Title 26, Chapter 8a, Utah


             5174      Emergency Medical Services System Act, Title 19, Chapter 2, Air Conservation Act, Title 19,
             5175      Chapter 3, Radiation Control Act, Title 19, Chapter 4, Safe Drinking Water Act, Title 19,
             5176      Chapter 5, Water Quality Act, Title 19, Chapter 6, Part 1, Solid and Hazardous Waste Act,
             5177      Title 19, Chapter 6, Part 4, Underground Storage Tank Act, or Title 19, Chapter 6, Part 7, Used
             5178      Oil Management Act, except that this chapter governs an agency action commenced by a
             5179      person authorized by law to contest the validity or correctness of the notice or order;
             5180          (l) state agency action, to the extent required by federal statute or regulation, to be
             5181      conducted according to federal procedures;
             5182          (m) the initial determination of a person's eligibility for government or public
             5183      assistance benefits;
             5184          (n) state agency action relating to wildlife licenses, permits, tags, and certificates of
             5185      registration;
             5186          (o) a license for use of state recreational facilities;
             5187          (p) state agency action under Title 63, Chapter 2, Government Records Access and
             5188      Management Act, except as provided in Section 63-2-603 ;
             5189          (q) state agency action relating to the collection of water commissioner fees and
             5190      delinquency penalties, or judicial review of the action;
             5191          (r) state agency action relating to the installation, maintenance, and repair of headgates,
             5192      caps, values, or other water controlling works and weirs, flumes, meters, or other water
             5193      measuring devices, or judicial review of the action;
             5194          (s) (i) a hearing conducted by the Division of Securities under Section 61-1-11.1 ; and
             5195          (ii) an action taken by the Division of Securities pursuant to a hearing conducted under
             5196      Section 61-1-11.1 , including a determination regarding the fairness of an issuance or exchange
             5197      of securities described in Subsection 61-1-11.1 (1); and
             5198          (t) state agency action relating to water well driller licenses, water well drilling permits,
             5199      water well driller registration, or water well drilling construction standards, or judicial review
             5200      of the action.
             5201          (3) This chapter does not affect a legal remedy otherwise available to:
             5202          (a) compel an agency to take action; or
             5203          (b) challenge an agency's rule.
             5204          (4) This chapter does not preclude an agency, prior to the beginning of an adjudicative


             5205      proceeding, or the presiding officer during an adjudicative proceeding from:
             5206          (a) requesting or ordering a conference with parties and interested persons to:
             5207          (i) encourage settlement;
             5208          (ii) clarify the issues;
             5209          (iii) simplify the evidence;
             5210          (iv) facilitate discovery; or
             5211          (v) expedite the proceeding; or
             5212          (b) granting a timely motion to dismiss or for summary judgment if the requirements of
             5213      Rule 12(b) or Rule 56 of the Utah Rules of Civil Procedure are met by the moving party,
             5214      except to the extent that the requirements of those rules are modified by this chapter.
             5215          (5) (a) A declaratory proceeding authorized by Section 63-46b-21 is not governed by
             5216      this chapter, except as explicitly provided in that section.
             5217          (b) Judicial review of a declaratory proceeding authorized by Section 63-46b-21 is
             5218      governed by this chapter.
             5219          (6) This chapter does not preclude an agency from enacting a rule affecting or
             5220      governing an adjudicative proceeding or from following the rule, if the rule is enacted
             5221      according to the procedures outlined in Title 63, Chapter 46a, Utah Administrative Rulemaking
             5222      Act, and if the rule conforms to the requirements of this chapter.
             5223          (7) (a) If the attorney general issues a written determination that a provision of this
             5224      chapter would result in the denial of funds or services to an agency of the state from the federal
             5225      government, the applicability of the provision to that agency shall be suspended to the extent
             5226      necessary to prevent the denial.
             5227          (b) The attorney general shall report the suspension to the Legislature at its next
             5228      session.
             5229          (8) Nothing in this chapter may be interpreted to provide an independent basis for
             5230      jurisdiction to review final agency action.
             5231          (9) Nothing in this chapter may be interpreted to restrict a presiding officer, for good
             5232      cause shown, from lengthening or shortening a time period prescribed in this chapter, except
             5233      the time period established for judicial review.
             5234          Section 89. Section 63A-5-206 is amended to read:
             5235           63A-5-206. Construction, alteration, and repair of state facilities -- Powers of


             5236      director -- Exceptions -- Expenditure of appropriations -- Notification to local
             5237      governments for construction or modification of certain facilities.
             5238          (1) As used in this section:
             5239          (a) "Analysis" means an economic assessment of competing design and maintenance
             5240      alternatives, the object of which is to reduce cost and conserve energy.
             5241          (b) "Capital developments" and "capital improvements" have the same meaning as
             5242      provided in Section 63A-5-104 .
             5243          (c) "Compliance agency" has the same meaning as provided in Subsection [ 58-56-3 (4)]
             5244      61-2f-103 (5).
             5245          (d) (i) "Facility" means any building, structure, or other improvement that is
             5246      constructed on property owned by the state, its departments, commissions, institutions, or
             5247      agencies.
             5248          (ii) "Facility" does not mean an unoccupied structure that is a component of the state
             5249      highway system.
             5250          (e) "Life cycle cost-effective" means the lowest cost of owning and operating a facility
             5251      over a 25-year period, including the initial cost, energy costs, operation and maintenance costs,
             5252      repair costs, and the costs of energy conservation and renewable energy systems.
             5253          (f) "Local government" means the county, municipality, or local school district that
             5254      would have jurisdiction to act as the compliance agency if the property on which the project is
             5255      being constructed were not owned by the state.
             5256          (g) "Renewable energy system" means a system designed to use solar, wind,
             5257      geothermal power, wood, or other replenishable energy source to heat, cool, or provide
             5258      electricity to a building.
             5259          (2) (a) Except as provided in Subsections (3) and (4), the director shall exercise direct
             5260      supervision over the design and construction of all new facilities, and all alterations, repairs,
             5261      and improvements to existing facilities if the total project construction cost, regardless of the
             5262      funding source, is greater than $100,000.
             5263          (b) The director shall prepare or have prepared by private firms or individuals designs,
             5264      plans, and specifications for the projects administered by the division.
             5265          (c) Before proceeding with construction, the director and the officials charged with the
             5266      administration of the affairs of the particular department, commission, institution, or agency


             5267      shall approve the location, design, plans, and specifications.
             5268          (3) Projects for the construction of new facilities and alterations, repairs, and
             5269      improvements to existing facilities are not subject to Subsection (2) if the project:
             5270          (a) occurs on property under the jurisdiction of the State Capitol Preservation Board;
             5271          (b) is within a designated research park at the University of Utah or Utah State
             5272      University;
             5273          (c) occurs within the boundaries of This is the Place State Park and is administered by
             5274      This is the Place Foundation except that This is the Place Foundation may request the director
             5275      to administer the design and construction; or
             5276          (d) is for the creation and installation of art under Title 9, Chapter 6, Part 4, Utah
             5277      Percent-for-Art Program.
             5278          (4) (a) (i) The State Building Board may authorize the delegation of control over
             5279      design, construction, and all other aspects of any project to entities of state government on a
             5280      project-by-project basis or for projects within a particular dollar range and a particular project
             5281      type.
             5282          (ii) The state entity to whom control is delegated shall assume fiduciary control over
             5283      project finances, shall assume all responsibility for project budgets and expenditures, and shall
             5284      receive all funds appropriated for the project, including any contingency funds contained in the
             5285      appropriated project budget.
             5286          (iii) Delegation of project control does not exempt the state entity from complying with
             5287      the codes and guidelines for design and construction adopted by the division and the State
             5288      Building Board.
             5289          (iv) State entities that receive a delegated project may not access, for the delegated
             5290      project, the division's statewide contingency reserve and project reserve authorized in Section
             5291      63A-5-209 .
             5292          (b) For facilities that will be owned, operated, maintained, and repaired by an entity
             5293      that is not a state agency or institution and that are located on state property, the State Building
             5294      Board may authorize the owner to administer the design and construction of the project instead
             5295      of the division.
             5296          (5) Notwithstanding any other provision of this section, if a donor donates land to an
             5297      eligible institution of higher education and commits to build a building or buildings on that


             5298      land, and the institution agrees to provide funds for the operations and maintenance costs from
             5299      sources other than state funds, and agrees that the building or buildings will not be eligible for
             5300      state capital improvement funding, the higher education institution may:
             5301          (a) oversee and manage the construction without involvement, oversight, or
             5302      management from the division; or
             5303          (b) arrange for management of the project by the division.
             5304          (6) (a) The role of compliance agency as provided in Title [58] 61, Chapter [56] 2f,
             5305      Utah Uniform Building Standards Act, shall be provided by:
             5306          (i) the director, for projects administered by the division;
             5307          (ii) the entity designated by the State Capitol Preservation Board, for projects under
             5308      Subsection (3)(a);
             5309          (iii) the local government, for projects exempt from the division's administration under
             5310      Subsection (3)(b) or administered by This is the Place Foundation under Subsection (3)(c);
             5311          (iv) the state entity or local government designated by the State Building Board, for
             5312      projects under Subsection (4); or
             5313          (v) the institution, for projects exempt from the division's administration under
             5314      Subsection (5)(a).
             5315          (b) For the installation of art under Subsection (3)(d), the role of compliance agency
             5316      shall be provided by the entity that is acting in this capacity for the balance of the project as
             5317      provided in Subsection (6)(a).
             5318          (c) The local government acting as the compliance agency under Subsection (6)(a)(iii)
             5319      may:
             5320          (i) only review plans and inspect construction to enforce the building codes as adopted
             5321      by the Uniform Building Codes Commission; and
             5322          (ii) charge a building permit fee of no more than the amount it could have charged if
             5323      the land upon which the improvements are located were not owned by the state.
             5324          (d) (i) The use of state property and any improvements constructed on state property,
             5325      including improvements constructed by nonstate entities, is not subject to the zoning authority
             5326      of local governments as provided in Section 10-9-105 .
             5327          (ii) The state entity controlling the use of the state property shall consider any input
             5328      received from the local government in determining how the property shall be used.


             5329          (7) Before construction may begin, the director shall review the design of projects
             5330      exempted from the division's administration under Subsection (4) to determine if the design:
             5331          (a) complies with any restrictions placed on the project by the State Building Board;
             5332      and
             5333          (b) is appropriate for the purpose and setting of the project.
             5334          (8) (a) The director shall ensure that state-owned facilities, except for facilities under
             5335      the control of the State Capitol Preservation Board, are life cycle cost-effective.
             5336          (b) The estimated cost of the analysis shall be included in each program budget
             5337      document and in the project funding request submitted to the State Building Board, the
             5338      governor, and the Legislature.
             5339          (c) The final cost estimate shall reflect the most life cycle cost-effective building.
             5340          (d) The State Building Board, in consultation with the director and the State Energy
             5341      Manager, shall make rules to implement this Subsection (8) by following the procedures and
             5342      requirements of Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             5343          (e) The State Building Board may exempt a facility from being life cycle cost-effective
             5344      pursuant to rules, after reviewing and concurring with a written request and justification from
             5345      the director.
             5346          (9) The director may expend appropriations for statewide projects from funds provided
             5347      by the Legislature for those specific purposes and within guidelines established by the State
             5348      Building Board.
             5349          (10) (a) The director, with the approval of the Office of Legislative Fiscal Analyst,
             5350      shall develop standard forms to present capital development and capital improvement cost
             5351      summary data.
             5352          (b) The director shall:
             5353          (i) within 30 days after the completion of each capital development project, submit cost
             5354      summary data for the project on the standard form to the Office of Legislative Fiscal Analyst;
             5355      and
             5356          (ii) upon request, submit cost summary data for a capital improvement project to the
             5357      Office of Legislative Fiscal Analyst on the standard form.
             5358          (11) Notwithstanding the requirements of Title 63, Chapter 38, Budgetary Procedures
             5359      Act, the director may:


             5360          (a) accelerate the design of projects funded by any appropriation act passed by the
             5361      Legislature in its annual general session;
             5362          (b) use any unencumbered existing account balances to fund that design work; and
             5363          (c) reimburse those account balances from the amount funded for those projects when
             5364      the appropriation act funding the project becomes effective.
             5365          (12) (a) The director, his designee, or the state entity to whom control has been
             5366      designated under Subsection (4), shall notify in writing the elected representatives of local
             5367      government entities directly and substantively affected by any diagnostic, treatment, parole,
             5368      probation, or other secured facility project exceeding $250,000, if:
             5369          (i) the nature of the project has been significantly altered since prior notification;
             5370          (ii) the project would significantly change the nature of the functions presently
             5371      conducted at the location; or
             5372          (iii) the project is new construction.
             5373          (b) At the request of either the state entity or the local government entity,
             5374      representatives from the state entity and the affected local entity shall conduct or participate in
             5375      a local public hearing or hearings to discuss these issues.
             5376          Section 90. Section 70D-1-19 is amended to read:
             5377           70D-1-19. Definitions.
             5378          As used in this chapter:
             5379          (1) "Manufactured home" means a transportable factory built housing unit constructed
             5380      on or after June 15, 1976, according to the National Manufactured Housing Construction and
             5381      Safety Standards Act of 1974, in one or more sections, which, in the traveling mode, is eight
             5382      body feet or more in width or 40 body feet or more in length, or when erected on site, is 400 or
             5383      more square feet, and which is built on a permanent chassis and designed to be used as a
             5384      dwelling with or without a permanent foundation when connected to the required utilities, and
             5385      includes the plumbing, heating, air-conditioning, and electrical systems.
             5386          (2) "Mobile home" means a transportable factory built housing unit built prior to June
             5387      15, 1976, in accordance with a state mobile home code which existed prior to the National
             5388      Manufactured Housing Construction and Safety Standards Act of 1974.
             5389          (3) "Permanently affixed" means anchored to, and supported by, a permanent
             5390      foundation or installed in accordance with the manufactured housing installation standard code


             5391      referred to in Section [ 58-56-4 ] 61-2f-201 .
             5392          Section 91. Section 77-18-15 is amended to read:
             5393           77-18-15. Retention of expunged records -- Agencies.
             5394          (1) The division shall keep, index, and maintain all expunged records of arrests and
             5395      convictions.
             5396          (2) Employees of the division may not divulge any information contained in its index
             5397      to any person or agency without a court order, except to the following:
             5398          (a) the Board of Pardons and Parole;
             5399          (b) the Peace Officer Standards and Training;
             5400          (c) federal authorities, unless prohibited by federal law;
             5401          (d) the Division of Occupational and Professional Licensing; [and]
             5402          (e) the Division of Real Estate for purposes of Title 61, Chapter 2e, Utah Construction
             5403      Trades Licensing Act; and
             5404          [(e)] (f) the State Office of Education.
             5405          (3) The division may also use the information in its index for the purpose of
             5406      establishing good character for issuance of a concealed firearm permit as provided in Section
             5407      53-5-704 .
             5408          (4) A person whose records are released under Subsection (2) shall be given a
             5409      reasonable opportunity by the recipient agency to challenge and explain any information in the
             5410      records and to challenge the relevancy of that information before a final determination is made
             5411      by the agency.
             5412          (5) A court may permit inspection or release of an expunged record only upon petition
             5413      by the person who is the subject of the record and only to the persons named in the petition.
             5414          (6) (a) For judicial sentencing, a court may order any records sealed under this section
             5415      to be opened and admitted into evidence.
             5416          (b) The records are confidential and are available for inspection only by the court,
             5417      parties, counsel for the parties, and any other person who is authorized by the court to inspect
             5418      them.
             5419          (c) At the end of the action or proceeding, the court shall order the records sealed
             5420      again.
             5421          (7) Records released under this section are classified as protected under Section


             5422      63-2-304 and are accessible only as provided under Title 63, Chapter 2, Part 2, Access to
             5423      Records.
             5424          Section 92. Transition clause.
             5425          (1) All rules relating to the regulation and administration of the contractor industry
             5426      lawfully adopted by the Division of Occupations and Professional Licensing in accordance
             5427      with the Title 58, Chapter 55, Utah Construction Trades Licensing Act and Title 58, Chapter
             5428      56, Utah Uniform Building Standards Act, and in effect as of June 30, 2005 shall:
             5429          (a) be transferred to rules issued by the Division of Real Estate; and
             5430          (b) continue to be in effect until amended or rescinded by the Division of Real Estate.
             5431          (2) A license relating to the contractor industry in effect on June 30, 2005 issued by the
             5432      Department of Occupational and Professional Licensing is converted to a license issued by the
             5433      Division of Real Estate as of July 1, 2005.
             5434          (3) Each current member appointed to the boards and commission created under Title
             5435      58, Chapters 55 and 56, as of June 30, 2005 shall fulfill that member's current term as provided
             5436      for by statute under Title 61, Chapters 2e and 2f.
             5437          (4) The Division of Occupational and Professional Licensing shall assign or otherwise
             5438      transfer to the Division of Real Estate the contract entered into, as provided in Subsection
             5439      38-1-27 (2), with the third party vendor for the creation and maintenance of the Construction
             5440      Notice Registry Database.
             5441          Section 93. Effective date.
             5442          This bill takes effect on July 1, 2005.




Legislative Review Note
    as of 2-2-05 5:35 PM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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