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First Substitute H.B. 302

Representative J. Stuart Adams proposes the following substitute bill:


             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              .    establishes procedures for administrative review and creates special appeals
             33      boards;
             34              .    provides for suspensions;
             35              .    establishes a diversion program in disciplinary matters;
             36              .    amends the definitions of unlawful and unprofessional conduct;
             37              .    establishes a maximum civil penalty;
             38              .    requires the division to comply with court-ordered discipline; and
             39              .    amends payment provisions relating to contractors, subcontractors, and
             40      suppliers;
             41          .    transfers the administration of the Utah Uniform Building Standards Act to the
             42      Division of Real Estate and includes the following provisions:
             43              .    amends definitions; and
             44              .    amends provisions relating to appointment and responsibilities of the Building
             45      Inspector Licensing Board and the collaboration between the division and the
             46      board;
             47          .    provides access to the Division of Real Estate of an index to expunged records; and
             48          .     makes conforming and technical amendments.
             49      Monies Appropriated in this Bill:
             50          None
             51      Other Special Clauses:
             52          This bill takes effect on July 1, 2006.
             53          This bill provides coordination clauses.
             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 ] 61-2f-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, Residence Lien Restriction and Lien
             913      Recovery Fund Act, and Title 14, Chapter 2, Private Contracts, shall be stayed until after the
             914      owner has been given a reasonable period of time to establish compliance with Subsections
             915      38-11-204 (4)(a) and (4)(b) through an informal proceeding, as set forth in Title 63, Chapter
             916      46b, Administrative Procedures Act, commenced within 30 days of the owner being served
             917      summons in the foreclosure action, at the Division of [Occupational and Professional
             918      Licensing] Real Estate and obtain a certificate of compliance or denial of certificate of
             919      compliance, as defined in Section 38-11-102 .
             920          (5) The written notice requirement applies to liens filed on or after July 1, 2004.
             921          Section 13. Section 38-1-27 (Effective 05/01/05) is amended to read:
             922           38-1-27 (Effective 05/01/05). Construction notice registry -- Form and contents of
             923      notice of commencement, preliminary notice, and notice of completion.
             924          (1) As used in this section and Sections 38-1-30 through 38-1-37 :


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


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


             987          (9) "Executive director" means the executive director of the Department of Commerce.
             988          (10) "Factory built housing" is as defined in Section [ 58-56-3 ] 61-2f-103 .
             989          (11) "Factory built housing retailer" means a person that sells factory built housing to
             990      consumers.
             991          (12) "Fund" means the Residence Lien Recovery Fund established under Section
             992      38-11-201 .
             993          (13) "Laborer" means a person who provides services at the site of the construction on
             994      an owner-occupied residence as an employee of an original contractor or other qualified
             995      beneficiary performing qualified services on the residence.
             996          (14) "Licensee" means any holder of a license issued under Title 58, Chapters 3a, 22,
             997      53, and [55] Title 61, Chapter 2e, Utah Construction Trades Licensing Act.
             998          (15) "Nonpaying party" means the original contractor, subcontractor, or real estate
             999      developer who has failed to pay the qualified beneficiary making a claim against the fund.
             1000          (16) "Original contractor" means a person who contracts with the owner of real
             1001      property or the owner's agent to provide services, labor, or material for the construction of an
             1002      owner-occupied residence.
             1003          (17) "Owner" means a person who:
             1004          (a) contracts with a person who is licensed as a contractor or is exempt from licensure
             1005      under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, for the
             1006      construction on an owner-occupied residence upon real property owned by that person;
             1007          (b) contracts with a real estate developer to buy a residence upon completion of the
             1008      construction on the owner-occupied residence; or
             1009          (c) buys a residence from a real estate developer after completion of the construction
             1010      on the owner-occupied residence.
             1011          (18) "Owner-occupied residence" means a residence that is, or after completion of the
             1012      construction on the residence will be, occupied by the owner or the owner's tenant or lessee as a
             1013      primary or secondary residence within 180 days from the date of the completion of the
             1014      construction on the residence.
             1015          (19) "Qualified beneficiary" means a person who:
             1016          (a) provides qualified services;
             1017          (b) pays necessary fees or assessments required under this chapter; and


             1018          (c) registers with the division:
             1019          (i) as a licensed contractor under Subsection 38-11-301 (1) or (2), if that person seeks
             1020      recovery from the fund as a licensed contractor; or
             1021          (ii) as a person providing qualified services other than as a licensed contractor under
             1022      Subsection 38-11-301 (3) if the person seeks recovery from the fund in a capacity other than as
             1023      a licensed contractor.
             1024          (20) (a) "Qualified services" means the following performed in construction on an
             1025      owner-occupied residence:
             1026          (i) contractor services provided by a contractor licensed or exempt from licensure
             1027      under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act;
             1028          (ii) architectural services provided by an architect licensed under Title 58, Chapter 3a,
             1029      Architects Licensing Act;
             1030          (iii) engineering and land surveying services provided by a professional engineer or
             1031      land surveyor licensed or exempt from licensure under Title 58, Chapter 22, Professional
             1032      Engineers and Professional Land Surveyors Licensing Act;
             1033          (iv) landscape architectural services by a landscape architect licensed or exempt from
             1034      licensure under Title 58, Chapter 53, Landscape Architects Licensing Act;
             1035          (v) design and specification services of mechanical or other systems;
             1036          (vi) other services related to the design, drawing, surveying, specification, cost
             1037      estimation, or other like professional services;
             1038          (vii) providing materials, supplies, components, or similar products;
             1039          (viii) renting equipment or materials;
             1040          (ix) labor at the site of the construction on the owner-occupied residence; and
             1041          (x) site preparation, set up, and installation of factory built housing.
             1042          (b) "Qualified services" do not include the construction of factory built housing in the
             1043      factory.
             1044          (21) "Real estate developer" means a person having an ownership interest in real
             1045      property who contracts with a person who is licensed as a contractor or is exempt from
             1046      licensure under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, for the
             1047      construction of a residence that is offered for sale to the public.
             1048          (22) (a) "Residence" means an improvement to real property used or occupied, to be


             1049      used or occupied as, or in conjunction with:
             1050          (i) a primary or secondary detached single-family dwelling; or
             1051          (ii) a multifamily dwelling up to and including duplexes.
             1052          (b) "Residence" includes factory built housing.
             1053          (23) "Subsequent owner" means a person who purchases a residence from an owner
             1054      within 180 days from the date the construction on the residence is completed.
             1055          Section 15. Section 38-11-103 is amended to read:
             1056           38-11-103. Administration.
             1057          This chapter shall be administered by the Division of [Occupational and Professional
             1058      Licensing] Real Estate pursuant to [the provisions of] this chapter and consistent with [Title 58,
             1059      Chapter 1] Title 61, Chapter 2e, Utah Construction Trades Licensing Act.
             1060          Section 16. Section 38-11-204 is amended to read:
             1061           38-11-204. Claims against the fund -- Requirement to make a claim --
             1062      Qualifications to receive compensation -- Qualifications to receive a certificate of
             1063      compliance.
             1064          (1) To claim recovery from the fund a person shall:
             1065          (a) meet the requirements of either Subsection (4) or (7);
             1066          (b) pay an application fee determined by the division under Section 63-38-3.2 ; and
             1067          (c) file with the division a completed application on a form provided by the division
             1068      accompanied by supporting documents establishing:
             1069          (i) that the person meets the requirements of either Subsection (4) or (7);
             1070          (ii) that the person was a qualified beneficiary or laborer during the construction on the
             1071      owner-occupied residence; and
             1072          (iii) the basis for the claim.
             1073          (2) To recover from the fund, the application required by Subsection (1) shall be filed
             1074      no later than one year:
             1075          (a) from the date the judgment required by Subsection (4)(d) is entered;
             1076          (b) from the date the nonpaying party filed bankruptcy, if the claimant is precluded
             1077      from obtaining a judgment or from satisfying the requirements of Subsection (4)(d) because the
             1078      nonpaying party filed bankruptcy within one year after the entry of judgment; or
             1079          (c) from the date the laborer, trying to recover from the fund, completed the laborer's


             1080      qualified services.
             1081          (3) To obtain a certificate of compliance an owner or agent of the owner shall establish
             1082      with the division that the owner meets the requirements of Subsections (4)(a) and (4)(b).
             1083          (4) To recover from the fund, regardless of whether the residence is occupied by the
             1084      owner, a subsequent owner, or the owner or subsequent owner's tenant or lessee, a qualified
             1085      beneficiary shall establish that:
             1086          (a) (i) the owner of the owner-occupied residence or the owner's agent entered into a
             1087      written contract with an original contractor licensed or exempt from licensure under Title [58]
             1088      61, Chapter [55] 2e, Utah Construction Trades Licensing Act:
             1089          (A) for the performance of qualified services;
             1090          (B) to obtain the performance of qualified services by others; or
             1091          (C) for the supervision of the performance by others of qualified services in
             1092      construction on that residence;
             1093          (ii) the owner of the owner-occupied residence or the owner's agent entered into a
             1094      written contract with a real estate developer for the purchase of an owner-occupied residence;
             1095      or
             1096          (iii) the owner of the owner-occupied residence or the owner's agent entered into a
             1097      written contract with a factory built housing retailer for the purchase of an owner-occupied
             1098      residence;
             1099          (b) the owner has paid in full the original contractor, licensed or exempt from licensure
             1100      under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, real estate
             1101      developer, or factory built housing retailer under Subsection (4)(a) with whom the owner has a
             1102      written contract in accordance with the written contract and any amendments to the contract;
             1103          (c) (i) the original contractor, licensed or exempt from licensure under Title [58] 61,
             1104      Chapter [55] 2e, Utah Construction Trades Licensing Act, the real estate developer, or the
             1105      factory built housing retailer subsequently failed to pay a qualified beneficiary who is entitled
             1106      to payment under an agreement with that original contractor or real estate developer licensed or
             1107      exempt from licensure under Title [58] 61, Chapter [55] 2e, Utah Construction Trades
             1108      Licensing Act, for services performed or materials supplied by the qualified beneficiary;
             1109          (ii) a subcontractor who contracts with the original contractor, licensed or exempt from
             1110      licensure under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, the


             1111      real estate developer, or the factory built housing retailer failed to pay a qualified beneficiary
             1112      who is entitled to payment under an agreement with that subcontractor or supplier; or
             1113          (iii) a subcontractor who contracts with a subcontractor or supplier failed to pay a
             1114      qualified beneficiary who is entitled to payment under an agreement with that subcontractor or
             1115      supplier;
             1116          (d) (i) the qualified beneficiary filed:
             1117          (A) an action against the nonpaying party to recover monies owed to the qualified
             1118      beneficiary within 180 days from the date the qualified beneficiary last provided qualified
             1119      services, unless precluded from doing so by the nonpaying party's bankruptcy filing within the
             1120      180 days after completion of services; and
             1121          (B) a notice of commencement of action with the division within 30 days from the date
             1122      the qualified beneficiary filed the civil action if a civil action was filed as required by
             1123      Subsection (4)(d)(i)(A);
             1124          (ii) the qualified beneficiary has obtained a judgment against the nonpaying party who
             1125      failed to pay the qualified beneficiary under an agreement to provide qualified services for
             1126      construction of that owner-occupied residence;
             1127          (iii) (A) the qualified beneficiary has:
             1128          (I) obtained from a court of competent jurisdiction the issuance of an order requiring
             1129      the judgment debtor, or if a corporation any officer of the corporation, to appear before the
             1130      court at a specified time and place to answer concerning the debtor's or corporation's property;
             1131          (II) received return of service of the order from a person qualified to serve documents
             1132      under the Utah Rules of Civil Procedure, Rule 4(b); and
             1133          (III) made reasonable efforts to obtain asset information from the supplemental
             1134      proceedings; and
             1135          (B) if assets subject to execution are discovered as a result of the order required under
             1136      Subsection (4)(d)(iii)(A) or for any other reason, to obtain the issuance of a writ of execution
             1137      from a court of competent jurisdiction; or
             1138          (iv) the qualified beneficiary timely filed a proof of claim where permitted in the
             1139      bankruptcy action, if the nonpaying party has filed bankruptcy;
             1140          (e) the qualified beneficiary is not entitled to reimbursement from any other person;
             1141      and


             1142          (f) the qualified beneficiary provided qualified services to a contractor, licensed or
             1143      exempt from licensure under Title [58] 61, Chapter [55] 2e, Utah Construction Trades
             1144      Licensing Act.
             1145          (5) The requirements of Subsections (4)(d)(i), (ii), and (iii) need not be met if the
             1146      qualified beneficiary has been precluded from obtaining a judgment against the nonpaying
             1147      party or from satisfying the requirements of Subsections (4)(d)(i), (ii), and (iii) because the
             1148      nonpaying party filed bankruptcy.
             1149          (6) If a qualified beneficiary fails to file the notice with the division required under
             1150      Subsection (4)(d)(i)(B), the claim of the qualified beneficiary shall be paid:
             1151          (a) if otherwise qualified under this chapter;
             1152          (b) to the extent that the limit of Subsection 38-11-203 (4)(a) has not been reached by
             1153      payments from the fund to qualified beneficiaries who have complied with the notice
             1154      requirements of Subsection (4)(d)(i)(B); and
             1155          (c) in the order that the claims are filed by persons who fail to comply with Subsection
             1156      (4)(d)(i)(B), not to exceed the limit of Subsection 38-11-203 (4)(a).
             1157          (7) To recover from the fund a laborer shall:
             1158          (a) establish that the laborer has not been paid wages due for the work performed at the
             1159      site of a construction on an owner-occupied residence; and
             1160          (b) provide any supporting documents or information required by rule by the division.
             1161          (8) A fee determined by the division under Section 63-38-3.2 shall be deducted from
             1162      any recovery from the fund received by a laborer.
             1163          (9) The requirements of Subsections (4)(a) and (4)(b) may be satisfied if an owner or
             1164      agent of the owner establishes to the satisfaction of the director that the owner of the
             1165      owner-occupied residence or the owner's agent entered into a written contract with an original
             1166      contractor who:
             1167          (a) was a business entity that was not licensed under Title [58] 61, Chapter [55] 2e,
             1168      Utah Construction Trades Licensing Act, but was solely or partly owned by an individual who
             1169      was licensed under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act; or
             1170          (b) was a natural person who was not licensed under Title [58] 61, Chapter [55] 2e,
             1171      Utah Construction Trades Licensing Act, but who was the sole or partial owner and qualifier of
             1172      a business entity that was licensed under Title [58] 61, Chapter [55] 2e, Utah Construction


             1173      Trades Licensing Act.
             1174          (10) The director shall have equitable power to determine if the requirements of
             1175      Subsections (4)(a) and (4)(b) have been met, but any decision by the director under Title 38,
             1176      Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act, shall not alter or have
             1177      any effect on any other decision by the division under Title [58] 61, Securities Division - Real
             1178      Estate Division.
             1179          Section 17. Section 38-11-207 is amended to read:
             1180           38-11-207. Reimbursement to the fund.
             1181          (1) If the director disburses monies from the fund as a result of a person licensed under
             1182      Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, or a qualified
             1183      beneficiary failing to pay qualified beneficiaries:
             1184          (a) the division shall issue a notice of the disbursement from the fund and the
             1185      obligation to reimburse the fund to the licensee or qualified beneficiary; and
             1186          (b) the licensee or qualified beneficiary shall reimburse the fund within 20 days from
             1187      the issuance of the notice required by Subsection (1)(a).
             1188          (2) The notice required by Subsection (1)(a) shall meet the requirements established by
             1189      rule by the division in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             1190      Act.
             1191          (3) (a) A finding of fact in an administrative action that a payment of any amount has
             1192      been made from the fund in settlement of a claim arising from the act, representation,
             1193      transaction, or conduct of a person licensed under Title [58] 61, Chapter [55] 2e, Utah
             1194      Construction Trades Licensing Act, in violation of Section [ 58-55-603 ] 61-2e-603 shall result
             1195      in the immediate suspension of that person's license without further compliance with Title 63,
             1196      Chapter 46b, Administrative Procedures Act.
             1197          (b) The finding of fact for Subsection (3)(a) may be made in the same administrative
             1198      action as the related claim and may be included in the findings required by Section 38-11-203 .
             1199          (c) The suspension required by Subsection (3)(a) shall remain in effect until the person
             1200      applies for reinstatement and is issued a license in accordance with Sections 58-1-308 and
             1201      [ 58-55-303 ] 61-2e-303 .
             1202          Section 18. Section 38-11-301 is amended to read:
             1203           38-11-301. Registration as a qualified beneficiary -- Initial regular assessment --


             1204      Affidavit.
             1205          (1) A person licensed as of July 1, 1995, as a contractor under the provisions of Title
             1206      [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, in license classifications
             1207      that regularly engage in providing qualified services shall be automatically registered as a
             1208      qualified beneficiary upon payment of the initial assessment.
             1209          (2) A person applying for licensure as a contractor after July 1, 1995, in license
             1210      classifications that regularly engage in providing qualified services shall be automatically
             1211      registered as a qualified beneficiary upon issuance of a license and payment of the initial
             1212      assessment.
             1213          (3) (a) After July 1, 1995, any person providing qualified services as other than a
             1214      contractor as provided in Subsection (1) or any person exempt from licensure under the
             1215      provisions of Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, may
             1216      register as a qualified beneficiary by:
             1217          (i) submitting an application in a form prescribed by the division;
             1218          (ii) demonstrating registration with the Division of Corporations and Commercial Code
             1219      as required by state law;
             1220          (iii) paying a registration fee determined by the division under Section 63-38-3.2 ; and
             1221          (iv) paying the initial assessment established under Subsection (4), and any special
             1222      assessment determined by the division under Subsection 38-11-206 (1).
             1223          (b) A person who does not register under Subsection (1), (2), or (3)(a) shall be
             1224      prohibited from recovering under the fund as a qualified beneficiary for work performed as
             1225      qualified services while not registered with the fund.
             1226          (4) (a) An applicant shall pay an initial assessment determined by the division under
             1227      Section 63-38-3.2 .
             1228          (b) The initial assessment to qualified registrants under Subsection (1) shall be made
             1229      not later than July 15, 1995, and shall be paid no later than November 1, 1995.
             1230          (c) The initial assessment to qualified registrants under Subsections (2) and (3) shall be
             1231      paid at the time of application for license or registration, however, beginning on May 1, 1996,
             1232      only one initial assessment or special assessments thereafter shall be required for persons
             1233      having multiple licenses under this section.
             1234          (5) A person shall be considered to have been registered as a qualified beneficiary on


             1235      January 1, 1995, for purposes of meeting the requirements of Subsection 38-11-204 (1)(c)(ii) if
             1236      the person:
             1237          (a) (i) is licensed on or before July 1, 1995, as a contractor under [the provisions of]
             1238      Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act, in license
             1239      classifications that regularly engage in providing qualified services; or
             1240          (ii) provides qualified services after July 1, 1995, as other than a contractor as provided
             1241      in Subsection (5)(a)(i) or is exempt from licensure under the provisions of Title [58] 61,
             1242      Chapter [55] 2e, Utah Construction Trades Licensing Act; and
             1243          (b) registers as a qualified beneficiary under Subsection (1) or (3) on or before
             1244      November 1, 1995.
             1245          Section 19. Section 38-11-302 is amended to read:
             1246           38-11-302. Effective date and term of registration -- Penalty for failure to pay
             1247      assessments -- Reinstatement.
             1248          (1) (a) A registration as a qualified beneficiary under this chapter is effective on the
             1249      date the division receives the initial assessment of the qualified beneficiary.
             1250          (b) A registrant shall be required to renew [his] the registrant's registration upon
             1251      imposition of a special assessment under Subsection 38-11-206 (1).
             1252          (2) A registration automatically expires if a registrant fails to renew [his] the
             1253      registrant's registration as required under Subsection (1).
             1254          (3) The division shall notify a qualified beneficiary in accordance with procedures
             1255      established by rule when renewal of registration is required in connection with a special
             1256      assessment.
             1257          (4) The license renewal notice to a contractor shall notify the licensee that failure to
             1258      renew [his] the licensee's license will result in automatic expiration of [his] the licensee's
             1259      registration as a qualified beneficiary and of the limitations set forth in Subsection (6) on
             1260      qualified beneficiaries whose registration has expired to make a claim upon the fund.
             1261          (5) Registration may be reinstated by:
             1262          (a) submitting an application for reinstatement in a form prescribed by the division;
             1263          (b) paying a reinstatement fee determined by the division under Section 63-38-3.2 ; and
             1264          (c) paying all unpaid assessments that were assessed during the period of the person's
             1265      registration and all assessments made upon qualified beneficiaries during the period the


             1266      applicant's registration was expired.
             1267          (6) (a) A qualified beneficiary whose registration expires loses all rights to make a
             1268      claim upon the fund or receive compensation from the fund resulting from providing qualified
             1269      service during the period of expiration.
             1270          (b) Except as provided by Section [ 58-55-401 ] 61-2e-401 , a qualified beneficiary
             1271      whose registration expires may make a claim upon the fund or receive compensation from the
             1272      fund for qualified services provided during the period the qualified beneficiary was part of the
             1273      fund.
             1274          Section 20. Section 57-23-4 is amended to read:
             1275           57-23-4. Exclusions.
             1276          This chapter does not apply to:
             1277          (1) an interest in real estate regulated under Title 57, Chapter 19, Timeshare and Camp
             1278      Resort Act;
             1279          (2) an offering for an interest in real estate which is regulated under:
             1280          (a) Title 61, Chapter 1, Utah Uniform Securities Act;
             1281          (b) the securities laws of any state; or
             1282          (c) federal securities laws; or
             1283          (3) a sale of manufactured housing licensed under Title [58] 61, Chapter [56] 2f, Utah
             1284      Uniform Building Standards Act, unless the sale is made in conjunction with an offering or sale
             1285      of a cooperative interest under this chapter.
             1286          Section 21. Section 58-1-202 is amended to read:
             1287           58-1-202. Boards -- Duties, functions, and responsibilities.
             1288          [(1)] The duties, functions, and responsibilities of each board include the following:
             1289          [(a)] (1) recommending to the director appropriate rules;
             1290          [(b)] (2) recommending to the director policy and budgetary matters;
             1291          [(c)] (3) approving and establishing a passing score for applicant examinations;
             1292          [(d)] (4) screening applicants and recommending licensing, renewal, reinstatement, and
             1293      relicensure actions to the director in writing;
             1294          [(e)] (5) assisting the director in establishing standards of supervision for students or
             1295      persons in training to become qualified to obtain a license in the occupation or profession it
             1296      represents; and


             1297          [(f)] (6) acting as presiding officer in conducting hearings associated with adjudicative
             1298      proceedings and in issuing recommended orders when so designated by the director.
             1299          [(2) Subsection (1) does not apply to boards created in Title 58, Chapter 55,
             1300      Construction Trades Licensing.]
             1301          Section 22. Section 58-1-203 is amended to read:
             1302           58-1-203. Duties, functions, and responsibilities of division in collaboration with
             1303      board.
             1304          [(1)] The following duties, functions, and responsibilities of the division shall be
             1305      performed by the division with the collaboration and assistance of the appropriate board:
             1306          [(a)] (1) defining which schools, colleges, universities, departments of universities, or
             1307      other institutions of learning are reputable and in good standing with the division;
             1308          [(b)] (2) prescribing license qualifications;
             1309          [(c)] (3) prescribing rules governing applications for licenses;
             1310          [(d)] (4) providing for a fair and impartial method of examination of applicants;
             1311          [(e)] (5) defining unprofessional conduct, by rule, to supplement the definitions under
             1312      this chapter or other licensing chapters;
             1313          [(f)] (6) establishing advisory peer committees to the board and prescribing their scope
             1314      of authority; and
             1315          [(g)] (7) establishing conditions for reinstatement and renewal of licenses.
             1316          [(2) Notwithstanding Subsection (1), the duties, functions, and responsibilities of the
             1317      division outlined in Subsection (1) shall, instead, be performed by the Construction Services
             1318      Commission for all purposes of Title 58, Chapter 55, Construction Trades Licensing.]
             1319          Section 23. Section 58-1-301.5 is amended to read:
             1320           58-1-301.5. Division access to Bureau of Criminal Identification records.
             1321          (1) The division shall have direct access to criminal background information
             1322      maintained by the Bureau of Criminal Identification under Title 53, Chapter 10, Part 2, Bureau
             1323      of Criminal Identification, for background screening of licensure applicants as required in:
             1324          (a) Section 58-31b-302 of Title 58, Chapter 31b, Nurse Practice Act;
             1325          (b) Section 58-47b-302 of Title 58, Chapter 47b, Massage Therapy Practice Act; and
             1326          [(c) Section 58-55-302 of Title 58, Chapter 55, Construction Trades Licensing, as it
             1327      applies to alarm companies and alarm company agents; and]


             1328          [(d)] (c) Section 58-63-302 of Title 58, Chapter 63, Security Personnel Licensing Act.
             1329          (2) The division access under Subsection (1) shall be in accordance with Section
             1330      53-10-108 .
             1331          Section 24. Section 58-3a-102 is amended to read:
             1332           58-3a-102. Definitions.
             1333          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             1334          (1) "Architect" means a person licensed under this chapter as an architect.
             1335          (2) "Board" means the Architects Licensing Board created in Section 58-3a-201 .
             1336          (3) "Building" means a structure which has human occupancy or habitation as its
             1337      principal purpose, and includes the structural, mechanical, and electrical systems, utility
             1338      services, and other facilities required for the building, and is otherwise governed by the codes
             1339      adopted under Title [58] 61, Chapter [56] 2f, Utah Uniform Building Standards Act.
             1340          (4) "Complete construction plans" means a final set of plans and specifications for a
             1341      building that normally includes:
             1342          (a) floor plans;
             1343          (b) elevations;
             1344          (c) site plans;
             1345          (d) foundation, structural, and framing detail;
             1346          (e) electrical, mechanical, and plumbing design;
             1347          (f) information required by the energy code;
             1348          (g) specifications and related calculations as appropriate; and
             1349          (h) all other documents required to obtain a building permit.
             1350          (5) "Fund" means the Architects Education and Enforcement Fund created in Section
             1351      58-3a-103 .
             1352          (6) (a) "Practice of architecture" means rendering or offering to render the following
             1353      services in connection with the design, construction, enlargement, or alteration of a building or
             1354      group of buildings, and the space within and surrounding such buildings:
             1355          (i) planning;
             1356          (ii) facility programming;
             1357          (iii) preliminary studies;
             1358          (iv) preparation of designs, drawings, and specifications;


             1359          (v) preparation of technical submissions and coordination of any element of technical
             1360      submissions prepared by others including, as appropriate and without limitation, professional
             1361      engineers, and landscape architects; and
             1362          (vi) administration of construction contracts.
             1363          (b) "Practice of architecture" does not include the practice of professional engineering
             1364      as defined in Section 58-22-102 , but a licensed architect may perform such professional
             1365      engineering work as is incidental to the practice of architecture.
             1366          (7) "Principal" means a licensed architect having responsible charge of an
             1367      organization's architectural practice.
             1368          (8) "Supervision of an employee, subordinate, associate, or drafter of an architect"
             1369      means that a licensed architect is responsible for and personally reviews, corrects when
             1370      necessary, and approves work performed by any employee, subordinate, associate, or drafter
             1371      under the direction of the architect, and may be further defined by rule by the division in
             1372      collaboration with the board.
             1373          (9) "Unlawful conduct" as defined in Section 58-1-501 is further defined in Section
             1374      58-3a-501 .
             1375          (10) "Unprofessional conduct" as defined in Section 58-1-501 may be further defined
             1376      by rule by the division in collaboration with the board.
             1377          Section 25. Section 58-3a-602 is amended to read:
             1378           58-3a-602. Plans and specifications to be sealed.
             1379          (1) Any final plan and specification of a building erected in this state shall bear the seal
             1380      of an architect licensed under this chapter, except as provided in Section 58-3a-304 , in Title 58,
             1381      Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act, and by the
             1382      codes adopted under Title [58] 61, Chapter [56] 2f, Utah Uniform Building Standards Act.
             1383          (2) Any final plan and specification of a building prepared by or under the supervision
             1384      of the licensed architect shall bear the seal of the architect when submitted to a client, or when
             1385      submitted to a building official for the purpose of obtaining a building permit, even if the
             1386      practice is exempt from licensure under Section 58-3a-304 .
             1387          Section 26. Section 58-22-102 is amended to read:
             1388           58-22-102. Definitions.
             1389          In addition to the definitions in Section 58-1-102 , as used in this chapter:


             1390          (1) "Board" means the Professional Engineers and Professional Land Surveyors
             1391      Licensing Board created in Section 58-22-201 .
             1392          (2) "Building" means a structure which has human occupancy or habitation as its
             1393      principal purpose, and includes the structural, mechanical, and electrical systems, utility
             1394      services, and other facilities required for the building, and is otherwise governed by the codes
             1395      adopted under Title [58] 61, Chapter [56] 2f, Utah Uniform Building Standards Act.
             1396          (3) "Complete construction plans" means a final set of plans, specifications, and reports
             1397      for a building or structure that normally includes:
             1398          (a) floor plans;
             1399          (b) elevations;
             1400          (c) site plans;
             1401          (d) foundation, structural, and framing detail;
             1402          (e) electrical, mechanical, and plumbing design;
             1403          (f) information required by the energy code;
             1404          (g) specifications and related calculations as appropriate; and
             1405          (h) all other documents required to obtain a building permit.
             1406          (4) "EAC/ABET" means the Engineering Accreditation Commission/Accreditation
             1407      Board for Engineering and Technology.
             1408          (5) "Fund" means the Professional Engineer, Professional Structural Engineer, and
             1409      Professional Land Surveyor Education and Enforcement Fund created in Section 58-22-103 .
             1410          (6) "NCEES" means the National Council of Examiners for Engineering and
             1411      Surveying.
             1412          (7) "Principal" means a licensed professional engineer, professional structural engineer,
             1413      or professional land surveyor having responsible charge of an organization's professional
             1414      engineering, professional structural engineering, or professional land surveying practice.
             1415          (8) "Professional engineer" means a person licensed under this chapter as a
             1416      professional engineer.
             1417          (9) "Professional engineering or the practice of engineering" means any service or
             1418      creative work, the adequate performance of which requires engineering education, training, and
             1419      experience in the application of special knowledge of the mathematical, physical, and
             1420      engineering sciences to such services or creative work as consultation, investigation,


             1421      evaluation, planning, design, and design coordination of engineering works and systems,
             1422      planning the use of land and water, facility programming, performing engineering surveys and
             1423      studies, and the review of construction for the purpose of monitoring compliance with
             1424      drawings and specifications; any of which embraces such services or work, either public or
             1425      private, in connection with any utilities, structures, buildings, machines, equipment, processes,
             1426      work systems, projects, and industrial or consumer products or equipment of a mechanical,
             1427      electrical, hydraulic, pneumatic, or thermal nature, and including such other professional
             1428      services as may be necessary to the planning, progress, and completion of any engineering
             1429      services, provided that the practice of professional engineering shall not include the practice of
             1430      architecture as defined in 58-3a-102, but a licensed professional engineer may perform such
             1431      architecture work as is incidental to the practice of engineering.
             1432          (10) "Professional engineering intern" means a person who has completed the
             1433      education requirements to become a professional engineer, has passed the fundamentals of
             1434      engineering examination, and is engaged in obtaining the four years of qualifying experience
             1435      for licensure under the direct supervision of a licensed professional engineer.
             1436          (11) "Professional land surveying or the practice of land surveying" means any service
             1437      or work, the adequate performance of which requires the application of special knowledge of
             1438      the principles of mathematics, the related physical and applied sciences, and the relevant
             1439      requirements of law for adequate evidence to the act of measuring and locating lines, angles,
             1440      elevations, natural and man-made features in the air, on the surface of the earth, within
             1441      underground workings, and on the beds of bodies of water for the purpose of determining areas
             1442      and volumes, for the monumenting or locating property boundaries or points controlling
             1443      boundaries, and for the platting and layout of lands and subdivisions thereof, including the
             1444      topography, alignment and grades of streets, and for the preparation and perpetuation of maps,
             1445      record plats, field notes records, and property descriptions that represent these surveys and such
             1446      other duties as sound surveying practices could direct.
             1447          (12) "Professional land surveyor" means an individual licensed under this chapter as a
             1448      professional land surveyor.
             1449          (13) "Professional structural engineer" means a person licensed under this chapter as a
             1450      professional structural engineer.
             1451          (14) "Professional structural engineering or the practice of structural engineering"


             1452      means the design and analysis of complex buildings and structures and includes the definition
             1453      of professional engineering or the practice of engineering provided in Subsection (9), and may
             1454      be further defined by rule by the division in collaboration with the board.
             1455          (15) "Structure" means that which is built or constructed, an edifice or building of any
             1456      kind, or any piece of work artificially built up or composed of parts joined together in some
             1457      definite manner, and as otherwise governed by the codes adopted under Title [58] 61, Chapter
             1458      [56] 2f, Utah Uniform Building Standards Act.
             1459          (16) " Supervision of an employee, subordinate, associate, or drafter of a licensee"
             1460      means that a licensed professional engineer, professional structural engineer, or professional
             1461      land surveyor is responsible for and personally reviews, corrects when necessary, and approves
             1462      work performed by any employee, subordinate, associate, or drafter under the direction of the
             1463      licensee, and may be further defined by rule by the division in collaboration with the board.
             1464          (17) "TAC/ABET" means the Technology Accreditation Commission/Accreditation
             1465      Board for Engineering and Technology.
             1466          (18) "Unlawful conduct" is defined in Sections 58-1-501 and 58-22-501 .
             1467          (19) "Unprofessional conduct" as defined in Section 58-1-501 may be further defined
             1468      by rule by the division in collaboration with the board.
             1469          Section 27. Section 58-22-602 is amended to read:
             1470           58-22-602. Plans, specifications, reports, maps, sketches, surveys, drawings,
             1471      documents, and plats to be sealed.
             1472          (1) Any final plan, specification, and report of a building or structure erected in this
             1473      state shall bear the seal of a professional engineer or professional structural engineer licensed
             1474      under this chapter, except as provided in Section 58-22-305 , in Title 58, Chapter 3a,
             1475      [Architect] Architects Licensing Act, and by the codes adopted under Title [58] 61, Chapter
             1476      [56] 2f, Utah Uniform Building Standards Act.
             1477          (2) Any final plan, specification, and report prepared by, or under the supervision of,
             1478      the professional engineer or professional structural engineer shall bear the seal of the
             1479      professional engineer or professional structural engineer when submitted to a client, when filed
             1480      with public authorities, or when submitted to a building official for the purpose of obtaining a
             1481      building permit, even if the practice is exempt from licensure under Section 58-22-305 .
             1482          (3) Any final plan, map, sketch, survey, drawing, document, plat, and report shall bear


             1483      the seal of the professional land surveyor licensed under this chapter when submitted to a client
             1484      or when filed with public authorities.
             1485          Section 28. Section 58-53-304 is amended to read:
             1486           58-53-304. Exemptions from licensure.
             1487          In addition to the exemptions from licensure in Section 58-1-307 , the following may
             1488      engage in the stated limited acts or practices without being licensed under this chapter:
             1489          (1) a person preparing a site plan as defined in Subsection 58-53-102 (3), for a one-,
             1490      two-, three-, or four-family residence not exceeding two stories in height, exclusive of the
             1491      basement;
             1492          (2) a person designing sprinkler irrigation systems when licensed as a landscape
             1493      contractor under Title [58] 61, Chapter [55] 2e, Utah Construction Trades Licensing Act;
             1494          (3) a person licensed to practice professional engineering or professional structural
             1495      engineering under Title 58, Chapter 22, Professional Engineers and Professional Land
             1496      Surveyors Licensing Act;
             1497          (4) a person licensed to practice architecture under Title 58, Chapter 3a, Architects
             1498      Licensing Act;
             1499          (5) unlicensed employees of a person licensed under this chapter while preparing site
             1500      plans as defined in Subsection 58-53-102 (3), under the supervision of a landscape architect;
             1501      and
             1502          (6) an organization engaged in the practice of landscape architecture, provided that:
             1503          (a) the organization employs a principal; and
             1504          (b) all individuals employed by the organization, who are engaged in the practice of
             1505      landscape architecture, are licensed or exempt from licensure under this chapter.
             1506          Section 29. Section 58-53-602 is amended to read:
             1507           58-53-602. Site plans to be sealed.
             1508          (1) Any site plan prepared in this state shall bear the seal of a landscape architect
             1509      licensed under this chapter, except as provided in Section 58-53-304 , in Title 58, Chapter 22,
             1510      Professional Engineers and Professional Land Surveyors Licensing Act, in Title 58, Chapter 3a,
             1511      Architects Licensing Act, or by the codes adopted under Title [58] 61, Chapter [56] 2f, Utah
             1512      Uniform Building Standards Act.
             1513          (2) Any final site plan prepared by or under the supervision of the licensed landscape


             1514      architect shall bear the seal of the landscape architect when submitted to a client, or when
             1515      submitted to a building official for the purpose of obtaining a building permit, even if the
             1516      practice is exempt from licensure under Section 58-53-304 .
             1517          Section 30. Section 59-12-102 is amended to read:
             1518           59-12-102. Definitions.
             1519          As used in this chapter:
             1520          (1) (a) "Admission or user fees" includes season passes.
             1521          (b) "Admission or user fees" does not include annual membership dues to private
             1522      organizations.
             1523          (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
             1524      Section 59-12-102.1 .
             1525          (3) "Agreement combined tax rate" means the sum of the tax rates:
             1526          (a) listed under Subsection (4); and
             1527          (b) that are imposed within a local taxing jurisdiction.
             1528          (4) "Agreement sales and use tax" means a tax imposed under:
             1529          (a) Subsection 59-12-103 (2)(a)(i);
             1530          (b) Section 59-12-204 ;
             1531          (c) Section 59-12-401 ;
             1532          (d) Section 59-12-402 ;
             1533          (e) Section 59-12-501 ;
             1534          (f) Section 59-12-502 ;
             1535          (g) Section 59-12-703 ;
             1536          (h) Section 59-12-802 ;
             1537          (i) Section 59-12-804 ;
             1538          (j) Section 59-12-1001 ;
             1539          (k) Section 59-12-1102 ;
             1540          (l) Section 59-12-1302 ;
             1541          (m) Section 59-12-1402 ; or
             1542          (n) Section 59-12-1503 .
             1543          (5) "Aircraft" is as defined in Section 72-10-102 .
             1544          (6) "Alcoholic beverage" means a beverage that:


             1545          (a) is suitable for human consumption; and
             1546          (b) contains .5% or more alcohol by volume.
             1547          (7) "Area agency on aging" is as defined in Section 62A-3-101 .
             1548          (8) "Authorized carrier" means:
             1549          (a) in the case of vehicles operated over public highways, the holder of credentials
             1550      indicating that the vehicle is or will be operated pursuant to both the International Registration
             1551      Plan and the International Fuel Tax Agreement;
             1552          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             1553      certificate or air carrier's operating certificate; or
             1554          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             1555      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             1556          (9) (a) Except as provided in Subsection (9)(b), "biomass energy" means any of the
             1557      following that is used as the primary source of energy to produce fuel or electricity:
             1558          (i) material from a plant or tree; or
             1559          (ii) other organic matter that is available on a renewable basis, including:
             1560          (A) slash and brush from forests and woodlands;
             1561          (B) animal waste;
             1562          (C) methane produced:
             1563          (I) at landfills; or
             1564          (II) as a byproduct of the treatment of wastewater residuals;
             1565          (D) aquatic plants; and
             1566          (E) agricultural products.
             1567          (b) "Biomass energy" does not include:
             1568          (i) black liquor;
             1569          (ii) treated woods; or
             1570          (iii) biomass from municipal solid waste other than methane produced:
             1571          (A) at landfills; or
             1572          (B) as a byproduct of the treatment of wastewater residuals.
             1573          (10) "Certified automated system" means software certified by the governing board of
             1574      the agreement in accordance with Section 59-12-102.1 that:
             1575          (a) calculates the agreement sales and use tax imposed within a local taxing


             1576      jurisdiction:
             1577          (i) on a transaction; and
             1578          (ii) in the states that are members of the agreement;
             1579          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             1580      member of the agreement; and
             1581          (c) maintains a record of the transaction described in Subsection (10)(a)(i).
             1582          (11) "Certified service provider" means an agent certified:
             1583          (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
             1584      and
             1585          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             1586      use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
             1587      own purchases.
             1588          (12) (a) Subject to Subsection (12)(b), "clothing" means all human wearing apparel
             1589      suitable for general use.
             1590          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1591      commission shall make rules:
             1592          (i) listing the items that constitute "clothing"; and
             1593          (ii) that are consistent with the list of items that constitute "clothing" under the
             1594      agreement.
             1595          (13) (a) For purposes of Subsection 59-12-104 (42), "coin-operated amusement device"
             1596      means:
             1597          (i) a coin-operated amusement, skill, or ride device;
             1598          (ii) that is not controlled through seller-assisted, over-the-counter, sales of tokens; and
             1599          (iii) includes a music machine, pinball machine, billiard machine, video game machine,
             1600      arcade machine, and a mechanical or electronic skill game or ride.
             1601          (b) For purposes of Subsection 59-12-104 (42), "coin-operated amusement device" does
             1602      not mean a coin-operated amusement device possessing a coinage mechanism that:
             1603          (i) accepts and registers multiple denominations of coins; and
             1604          (ii) allows the seller to collect the sales and use tax at the time an amusement device is
             1605      activated and operated by a person inserting coins into the device.
             1606          (14) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other


             1607      fuels that does not constitute industrial use under Subsection (34) or residential use under
             1608      Subsection (63).
             1609          (15) (a) "Common carrier" means a person engaged in or transacting the business of
             1610      transporting passengers, freight, merchandise, or other property for hire within this state.
             1611          (b) (i) "Common carrier" does not include a person who, at the time the person is
             1612      traveling to or from that person's place of employment, transports a passenger to or from the
             1613      passenger's place of employment.
             1614          (ii) For purposes of Subsection (15)(b)(i), in accordance with Title 63, Chapter 46a,
             1615      Utah Administrative Rulemaking Act, the commission may make rules defining what
             1616      constitutes a person's place of employment.
             1617          (16) "Component part" includes:
             1618          (a) poultry, dairy, and other livestock feed, and their components;
             1619          (b) baling ties and twine used in the baling of hay and straw;
             1620          (c) fuel used for providing temperature control of orchards and commercial
             1621      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             1622      off-highway type farm machinery; and
             1623          (d) feed, seeds, and seedlings.
             1624          (17) "Computer" means an electronic device that accepts information:
             1625          (a) (i) in digital form; or
             1626          (ii) in a form similar to digital form; and
             1627          (b) manipulates that information for a result based on a sequence of instructions.
             1628          (18) "Computer software" means a set of coded instructions designed to cause:
             1629          (a) a computer to perform a task; or
             1630          (b) automatic data processing equipment to perform a task.
             1631          (19) "Construction materials" means any tangible personal property that will be
             1632      converted into real property.
             1633          (20) "Delivered electronically" means delivered to a purchaser by means other than
             1634      tangible storage media.
             1635          (21) (a) "Delivery charge" means a charge:
             1636          (i) by a seller of:
             1637          (A) tangible personal property; or


             1638          (B) services; and
             1639          (ii) for preparation and delivery of the tangible personal property or services described
             1640      in Subsection (21)(a)(i) to a location designated by the purchaser.
             1641          (b) "Delivery charge" includes a charge for the following:
             1642          (i) transportation;
             1643          (ii) shipping;
             1644          (iii) postage;
             1645          (iv) handling;
             1646          (v) crating; or
             1647          (vi) packing.
             1648          (22) "Dietary supplement" means a product, other than tobacco, that:
             1649          (a) is intended to supplement the diet;
             1650          (b) contains one or more of the following dietary ingredients:
             1651          (i) a vitamin;
             1652          (ii) a mineral;
             1653          (iii) an herb or other botanical;
             1654          (iv) an amino acid;
             1655          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             1656      dietary intake; or
             1657          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             1658      described in Subsections (22)(b)(i) through (v);
             1659          (c) (i) except as provided in Subsection (22)(c)(ii), is intended for ingestion in:
             1660          (A) tablet form;
             1661          (B) capsule form;
             1662          (C) powder form;
             1663          (D) softgel form;
             1664          (E) gelcap form; or
             1665          (F) liquid form; or
             1666          (ii) notwithstanding Subsection (22)(c)(i), if the product is not intended for ingestion in
             1667      a form described in Subsections (22)(c)(i)(A) through (F), is not represented:
             1668          (A) as conventional food; and


             1669          (B) for use as a sole item of:
             1670          (I) a meal; or
             1671          (II) the diet; and
             1672          (d) is required to be labeled as a dietary supplement:
             1673          (i) identifiable by the "Supplemental Facts" box found on the label; and
             1674          (ii) as required by 21 C.F.R. Sec. 101.36.
             1675          (23) (a) "Direct mail" means printed material delivered or distributed by United States
             1676      mail or other delivery service:
             1677          (i) to:
             1678          (A) a mass audience; or
             1679          (B) addressees on a mailing list provided by a purchaser of the mailing list; and
             1680          (ii) if the cost of the printed material is not billed directly to the recipients.
             1681          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             1682      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             1683          (c) "Direct mail" does not include multiple items of printed material delivered to a
             1684      single address.
             1685          (24) (a) "Drug" means a compound, substance, or preparation, or a component of a
             1686      compound, substance, or preparation that is:
             1687          (i) recognized in:
             1688          (A) the official United States Pharmacopoeia;
             1689          (B) the official Homeopathic Pharmacopoeia of the United States;
             1690          (C) the official National Formulary; or
             1691          (D) a supplement to a publication listed in Subsections (24)(a)(i)(A) through (C);
             1692          (ii) intended for use in the:
             1693          (A) diagnosis of disease;
             1694          (B) cure of disease;
             1695          (C) mitigation of disease;
             1696          (D) treatment of disease; or
             1697          (E) prevention of disease; or
             1698          (iii) intended to affect:
             1699          (A) the structure of the body; or


             1700          (B) any function of the body.
             1701          (b) "Drug" does not include:
             1702          (i) food and food ingredients;
             1703          (ii) a dietary supplement;
             1704          (iii) an alcoholic beverage; or
             1705          (iv) a prosthetic device.
             1706          (25) (a) Except as provided in Subsection (25)(c), "durable medical equipment" means
             1707      equipment that:
             1708          (i) can withstand repeated use;
             1709          (ii) is primarily and customarily used to serve a medical purpose;
             1710          (iii) generally is not useful to a person in the absence of illness or injury;
             1711          (iv) is not worn in or on the body;
             1712          (v) is listed as eligible for payment under:
             1713          (A) Title XVIII of the federal Social Security Act; or
             1714          (B) the state plan for medical assistance under Title XIX of the federal Social Security
             1715      Act; and
             1716          (vi) is used for home use only.
             1717          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             1718      equipment described in Subsection (25)(a).
             1719          (c) Notwithstanding Subsection (25)(a), "durable medical equipment" does not include
             1720      mobility enhancing equipment.
             1721          (26) "Electronic" means:
             1722          (a) relating to technology; and
             1723          (b) having:
             1724          (i) electrical capabilities;
             1725          (ii) digital capabilities;
             1726          (iii) magnetic capabilities;
             1727          (iv) wireless capabilities;
             1728          (v) optical capabilities;
             1729          (vi) electromagnetic capabilities; or
             1730          (vii) capabilities similar to Subsections (26)(b)(i) through (vi).


             1731          (27) (a) "Food and food ingredients" means substances:
             1732          (i) regardless of whether the substances are in:
             1733          (A) liquid form;
             1734          (B) concentrated form;
             1735          (C) solid form;
             1736          (D) frozen form;
             1737          (E) dried form; or
             1738          (F) dehydrated form; and
             1739          (ii) that are:
             1740          (A) sold for:
             1741          (I) ingestion by humans; or
             1742          (II) chewing by humans; and
             1743          (B) consumed for the substance's:
             1744          (I) taste; or
             1745          (II) nutritional value.
             1746          (b) "Food and food ingredients" does not include:
             1747          (i) an alcoholic beverage;
             1748          (ii) tobacco; or
             1749          (iii) prepared food.
             1750          (28) (a) "Fundraising sales" means sales:
             1751          (i) (A) made by a school; or
             1752          (B) made by a school student;
             1753          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1754      materials, or provide transportation; and
             1755          (iii) that are part of an officially sanctioned school activity.
             1756          (b) For purposes of Subsection (28)(a)(iii), "officially sanctioned school activity"
             1757      means a school activity:
             1758          (i) that is conducted in accordance with a formal policy adopted by the school or school
             1759      district governing the authorization and supervision of fundraising activities;
             1760          (ii) that does not directly or indirectly compensate an individual teacher or other
             1761      educational personnel by direct payment, commissions, or payment in kind; and


             1762          (iii) the net or gross revenues from which are deposited in a dedicated account
             1763      controlled by the school or school district.
             1764          (29) "Geothermal energy" means energy contained in heat that continuously flows
             1765      outward from the earth that is used as the sole source of energy to produce electricity.
             1766          (30) "Governing board of the agreement" means the governing board of the agreement
             1767      that is:
             1768          (a) authorized to administer the agreement; and
             1769          (b) established in accordance with the agreement.
             1770          (31) (a) "Hearing aid" means:
             1771          (i) an instrument or device having an electronic component that is designed to:
             1772          (A) (I) improve impaired human hearing; or
             1773          (II) correct impaired human hearing; and
             1774          (B) (I) be worn in the human ear; or
             1775          (II) affixed behind the human ear;
             1776          (ii) an instrument or device that is surgically implanted into the cochlea; or
             1777          (iii) a telephone amplifying device.
             1778          (b) "Hearing aid" does not include:
             1779          (i) except as provided in Subsection (31)(a)(i)(B) or (31)(a)(ii), an instrument or device
             1780      having an electronic component that is designed to be worn on the body;
             1781          (ii) except as provided in Subsection (31)(a)(iii), an assistive listening device or system
             1782      designed to be used by one individual, including:
             1783          (A) a personal amplifying system;
             1784          (B) a personal FM system;
             1785          (C) a television listening system; or
             1786          (D) a device or system similar to a device or system described in Subsections
             1787      (31)(b)(ii)(A) through (C); or
             1788          (iii) an assistive listening device or system designed to be used by more than one
             1789      individual, including:
             1790          (A) a device or system installed in:
             1791          (I) an auditorium;
             1792          (II) a church;


             1793          (III) a conference room;
             1794          (IV) a synagogue; or
             1795          (V) a theater; or
             1796          (B) a device or system similar to a device or system described in Subsections
             1797      (31)(b)(iii)(A)(I) through (V).
             1798          (32) (a) "Hearing aid accessory" means a hearing aid:
             1799          (i) component;
             1800          (ii) attachment; or
             1801          (iii) accessory.
             1802          (b) "Hearing aid accessory" includes:
             1803          (i) a hearing aid neck loop;
             1804          (ii) a hearing aid cord;
             1805          (iii) a hearing aid ear mold;
             1806          (iv) hearing aid tubing;
             1807          (v) a hearing aid ear hook; or
             1808          (vi) a hearing aid remote control.
             1809          (c) "Hearing aid accessory" does not include:
             1810          (i) a component, attachment, or accessory designed to be used only with an:
             1811          (A) instrument or device described in Subsection (31)(b)(i); or
             1812          (B) assistive listening device or system described in Subsection (31)(b)(ii) or (iii); or
             1813          (ii) a hearing aid battery.
             1814          (33) "Hydroelectric energy" means water used as the sole source of energy to produce
             1815      electricity.
             1816          (34) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             1817      other fuels:
             1818          (a) in mining or extraction of minerals;
             1819          (b) in agricultural operations to produce an agricultural product up to the time of
             1820      harvest or placing the agricultural product into a storage facility, including:
             1821          (i) commercial greenhouses;
             1822          (ii) irrigation pumps;
             1823          (iii) farm machinery;


             1824          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             1825      registered under Title 41, Chapter 1a, Part 2, Registration; and
             1826          (v) other farming activities;
             1827          (c) in manufacturing tangible personal property at an establishment described in SIC
             1828      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             1829      Executive Office of the President, Office of Management and Budget; or
             1830          (d) by a scrap recycler if:
             1831          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1832      one or more of the following items into prepared grades of processed materials for use in new
             1833      products:
             1834          (A) iron;
             1835          (B) steel;
             1836          (C) nonferrous metal;
             1837          (D) paper;
             1838          (E) glass;
             1839          (F) plastic;
             1840          (G) textile; or
             1841          (H) rubber; and
             1842          (ii) the new products under Subsection (34)(d)(i) would otherwise be made with
             1843      nonrecycled materials.
             1844          (35) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             1845      personal property for:
             1846          (i) (A) a fixed term; or
             1847          (B) an indeterminate term; and
             1848          (ii) consideration.
             1849          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             1850      amount of consideration may be increased or decreased by reference to the amount realized
             1851      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             1852      Code.
             1853          (c) "Lease" or "rental" does not include:
             1854          (i) a transfer of possession or control of property under a security agreement or


             1855      deferred payment plan that requires the transfer of title upon completion of the required
             1856      payments;
             1857          (ii) a transfer of possession or control of property under an agreement:
             1858          (A) that requires the transfer of title upon completion of required payments; and
             1859          (B) in which the payment of an option price does not exceed the greater of:
             1860          (I) $100; or
             1861          (II) 1% of the total required payments; or
             1862          (iii) providing tangible personal property along with an operator for a fixed period of
             1863      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             1864      designed.
             1865          (d) For purposes of Subsection (35)(c)(iii), an operator is necessary for equipment to
             1866      perform as designed if the operator's duties exceed the:
             1867          (i) set-up of tangible personal property;
             1868          (ii) maintenance of tangible personal property; or
             1869          (iii) inspection of tangible personal property.
             1870          (36) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             1871      if the tangible storage media is not physically transferred to the purchaser.
             1872          (37) "Local taxing jurisdiction" means a:
             1873          (a) county that is authorized to impose an agreement sales and use tax;
             1874          (b) city that is authorized to impose an agreement sales and use tax; or
             1875          (c) town that is authorized to impose an agreement sales and use tax.
             1876          (38) "Manufactured home" is as defined in Section [ 58-56-3 ] 61-2f-103 .
             1877          (39) For purposes of Subsection 59-12-104 (14), "manufacturing facility" means:
             1878          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             1879      Industrial Classification Manual of the federal Executive Office of the President, Office of
             1880      Management and Budget; or
             1881          (b) a scrap recycler if:
             1882          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1883      one or more of the following items into prepared grades of processed materials for use in new
             1884      products:
             1885          (A) iron;


             1886          (B) steel;
             1887          (C) nonferrous metal;
             1888          (D) paper;
             1889          (E) glass;
             1890          (F) plastic;
             1891          (G) textile; or
             1892          (H) rubber; and
             1893          (ii) the new products under Subsection (39)(b)(i) would otherwise be made with
             1894      nonrecycled materials.
             1895          (40) "Mobile home" is as defined in Section [ 58-56-3 ] 61-2f-103 .
             1896          (41) "Mobile telecommunications service" is as defined in the Mobile
             1897      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1898          (42) (a) Except as provided in Subsection (42)(c), "mobility enhancing equipment"
             1899      means equipment that is:
             1900          (i) primarily and customarily used to provide or increase the ability to move from one
             1901      place to another;
             1902          (ii) appropriate for use in a:
             1903          (A) home; or
             1904          (B) motor vehicle;
             1905          (iii) not generally used by persons with normal mobility; and
             1906          (iv) listed as eligible for payment under:
             1907          (A) Title XVIII of the federal Social Security Act; or
             1908          (B) the state plan for medical assistance under Title XIX of the federal Social Security
             1909      Act.
             1910          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             1911      the equipment described in Subsection (42)(a).
             1912          (c) Notwithstanding Subsection (42)(a), "mobility enhancing equipment" does not
             1913      include:
             1914          (i) a motor vehicle;
             1915          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             1916      vehicle manufacturer;


             1917          (iii) durable medical equipment; or
             1918          (iv) a prosthetic device.
             1919          (43) "Model 1 seller" means a seller that has selected a certified service provider as the
             1920      seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
             1921      use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
             1922      seller's own purchases.
             1923          (44) "Model 2 seller" means a seller that:
             1924          (a) except as provided in Subsection (44)(b), has selected a certified automated system
             1925      to perform the seller's sales tax functions for agreement sales and use taxes; and
             1926          (b) notwithstanding Subsection (44)(a), retains responsibility for remitting all of the
             1927      sales tax:
             1928          (i) collected by the seller; and
             1929          (ii) to the appropriate local taxing jurisdiction.
             1930          (45) (a) Subject to Subsection (45)(b), "model 3 seller" means a seller that has:
             1931          (i) sales in at least five states that are members of the agreement;
             1932          (ii) total annual sales revenues of at least $500,000,000;
             1933          (iii) a proprietary system that calculates the amount of tax:
             1934          (A) for an agreement sales and use tax; and
             1935          (B) due to each local taxing jurisdiction; and
             1936          (iv) entered into a performance agreement with the governing board of the agreement.
             1937          (b) For purposes of Subsection (45)(a), "model 3 seller" includes an affiliated group of
             1938      sellers using the same proprietary system.
             1939          (46) "Modular home" means a modular unit as defined in Section [ 58-56-3 ] 61-2f-103 .
             1940          (47) "Motor vehicle" is as defined in Section 41-1a-102 .
             1941          (48) (a) "Other fuels" means products that burn independently to produce heat or
             1942      energy.
             1943          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             1944      personal property.
             1945          (49) "Person" includes any individual, firm, partnership, joint venture, association,
             1946      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             1947      municipality, district, or other local governmental entity of the state, or any group or


             1948      combination acting as a unit.
             1949          (50) "Place of primary use":
             1950          (a) for telephone service other than mobile telecommunications service, means the
             1951      street address representative of where the purchaser's use of the telephone service primarily
             1952      occurs, which shall be:
             1953          (i) the residential street address of the purchaser; or
             1954          (ii) the primary business street address of the purchaser; or
             1955          (b) for mobile telecommunications service, is as defined in the Mobile
             1956      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1957          (51) "Postproduction" means an activity related to the finishing or duplication of a
             1958      medium described in Subsection 59-12-104 (60)(a).
             1959          (52) (a) "Prepared food" means:
             1960          (i) food:
             1961          (A) sold in a heated state; or
             1962          (B) heated by a seller;
             1963          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             1964      item; or
             1965          (iii) except as provided in Subsection (52)(c), food sold with an eating utensil provided
             1966      by the seller, including a:
             1967          (A) plate;
             1968          (B) knife;
             1969          (C) fork;
             1970          (D) spoon;
             1971          (E) glass;
             1972          (F) cup;
             1973          (G) napkin; or
             1974          (H) straw.
             1975          (b) "Prepared food" does not include:
             1976          (i) food that a seller only:
             1977          (A) cuts;
             1978          (B) repackages; or


             1979          (C) pasteurizes; or
             1980          (ii) (A) the following:
             1981          (I) raw egg;
             1982          (II) raw fish;
             1983          (III) raw meat;
             1984          (IV) raw poultry; or
             1985          (V) a food containing an item described in Subsections (52)(b)(ii)(A)(I) through (IV);
             1986      and
             1987          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             1988      Food and Drug Administration's Food Code that a consumer cook the items described in
             1989      Subsection (52)(b)(ii)(A) to prevent food borne illness.
             1990          (c) Notwithstanding Subsection (52)(a)(iii), an eating utensil provided by the seller
             1991      does not include the following used to transport the food:
             1992          (i) a container; or
             1993          (ii) packaging.
             1994          (53) "Prescription" means an order, formula, or recipe that is issued:
             1995          (a) (i) orally;
             1996          (ii) in writing;
             1997          (iii) electronically; or
             1998          (iv) by any other manner of transmission; and
             1999          (b) by a licensed practitioner authorized by the laws of a state.
             2000          (54) (a) Except as provided in Subsection (54)(b)(ii) or (iii), "prewritten computer
             2001      software" means computer software that is not designed and developed:
             2002          (i) by the author or other creator of the computer software; and
             2003          (ii) to the specifications of a specific purchaser.
             2004          (b) "Prewritten computer software" includes:
             2005          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2006      software is not designed and developed:
             2007          (A) by the author or other creator of the computer software; and
             2008          (B) to the specifications of a specific purchaser;
             2009          (ii) notwithstanding Subsection (54)(a), computer software designed and developed by


             2010      the author or other creator of the computer software to the specifications of a specific purchaser
             2011      if the computer software is sold to a person other than the purchaser; or
             2012          (iii) notwithstanding Subsection (54)(a) and except as provided in Subsection (54)(c),
             2013      prewritten computer software or a prewritten portion of prewritten computer software:
             2014          (A) that is modified or enhanced to any degree; and
             2015          (B) if the modification or enhancement described in Subsection (54)(b)(iii)(A) is
             2016      designed and developed to the specifications of a specific purchaser.
             2017          (c) Notwithstanding Subsection (54)(b)(iii), "prewritten computer software" does not
             2018      include a modification or enhancement described in Subsection (54)(b)(iii) if the charges for
             2019      the modification or enhancement are:
             2020          (i) reasonable; and
             2021          (ii) separately stated on the invoice or other statement of price provided to the
             2022      purchaser.
             2023          (55) (a) "Prosthetic device" means a device that is:
             2024          (i) worn on or in the body to:
             2025          (A) artificially replace a missing portion of the body;
             2026          (B) prevent or correct a physical deformity or physical malfunction; or
             2027          (C) support a weak or deformed portion of the body; and
             2028          (ii) listed as eligible for payment under:
             2029          (A) Title XVIII of the federal Social Security Act; or
             2030          (B) the state plan for medical assistance under Title XIX of the federal Social Security
             2031      Act.
             2032          (b) "Prosthetic device" includes:
             2033          (i) parts used in the repairs or renovation of a prosthetic device; or
             2034          (ii) replacement parts for a prosthetic device.
             2035          (c) "Prosthetic device" does not include:
             2036          (i) corrective eyeglasses;
             2037          (ii) contact lenses;
             2038          (iii) hearing aids; or
             2039          (iv) dental prostheses.
             2040          (56) (a) "Protective equipment" means an item:


             2041          (i) for human wear; and
             2042          (ii) that is:
             2043          (A) designed as protection:
             2044          (I) to the wearer against injury or disease; or
             2045          (II) against damage or injury of other persons or property; and
             2046          (B) not suitable for general use.
             2047          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2048      commission shall make rules:
             2049          (i) listing the items that constitute "protective equipment"; and
             2050          (ii) that are consistent with the list of items that constitute "protective equipment"
             2051      under the agreement.
             2052          (57) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             2053          (i) valued in money; and
             2054          (ii) for which tangible personal property or services are:
             2055          (A) sold;
             2056          (B) leased; or
             2057          (C) rented.
             2058          (b) "Purchase price" and "sales price" include:
             2059          (i) the seller's cost of the tangible personal property or services sold;
             2060          (ii) expenses of the seller, including:
             2061          (A) the cost of materials used;
             2062          (B) a labor cost;
             2063          (C) a service cost;
             2064          (D) interest;
             2065          (E) a loss;
             2066          (F) the cost of transportation to the seller; or
             2067          (G) a tax imposed on the seller;
             2068          (iii) a charge by the seller for any service necessary to complete the sale;
             2069          (iv) a delivery charge; or
             2070          (v) an installation charge.
             2071          (c) "Purchase price" and "sales price" do not include:


             2072          (i) a discount:
             2073          (A) in a form including:
             2074          (I) cash;
             2075          (II) term; or
             2076          (III) coupon;
             2077          (B) that is allowed by a seller;
             2078          (C) taken by a purchaser on a sale; and
             2079          (D) that is not reimbursed by a third party; or
             2080          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             2081      provided to the purchaser:
             2082          (A) the amount of a trade-in;
             2083          (B) the following from credit extended on the sale of tangible personal property or
             2084      services:
             2085          (I) interest charges;
             2086          (II) financing charges; or
             2087          (III) carrying charges; or
             2088          (C) a tax or fee legally imposed directly on the consumer.
             2089          (58) "Purchaser" means a person to whom:
             2090          (a) a sale of tangible personal property is made; or
             2091          (b) a service is furnished.
             2092          (59) "Regularly rented" means:
             2093          (a) rented to a guest for value three or more times during a calendar year; or
             2094          (b) advertised or held out to the public as a place that is regularly rented to guests for
             2095      value.
             2096          (60) "Renewable energy" means:
             2097          (a) biomass energy;
             2098          (b) hydroelectric energy;
             2099          (c) geothermal energy;
             2100          (d) solar energy; or
             2101          (e) wind energy.
             2102          (61) (a) "Renewable energy production facility" means a facility that:


             2103          (i) uses renewable energy to produce electricity; and
             2104          (ii) has a production capacity of 20 kilowatts or greater.
             2105          (b) A facility is a renewable energy production facility regardless of whether the
             2106      facility is:
             2107          (i) connected to an electric grid; or
             2108          (ii) located on the premises of an electricity consumer.
             2109          (62) "Rental" is as defined in Subsection (35).
             2110          (63) "Residential use" means the use in or around a home, apartment building, sleeping
             2111      quarters, and similar facilities or accommodations.
             2112          (64) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             2113      than:
             2114          (a) resale;
             2115          (b) sublease; or
             2116          (c) subrent.
             2117          (65) (a) "Retailer" means any person engaged in a regularly organized business in
             2118      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             2119      who is selling to the user or consumer and not for resale.
             2120          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             2121      engaged in the business of selling to users or consumers within the state.
             2122          (66) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             2123      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             2124      Subsection 59-12-103 (1), for consideration.
             2125          (b) "Sale" includes:
             2126          (i) installment and credit sales;
             2127          (ii) any closed transaction constituting a sale;
             2128          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             2129      chapter;
             2130          (iv) any transaction if the possession of property is transferred but the seller retains the
             2131      title as security for the payment of the price; and
             2132          (v) any transaction under which right to possession, operation, or use of any article of
             2133      tangible personal property is granted under a lease or contract and the transfer of possession


             2134      would be taxable if an outright sale were made.
             2135          (67) "Sale at retail" is as defined in Subsection (64).
             2136          (68) "Sale-leaseback transaction" means a transaction by which title to tangible
             2137      personal property that is subject to a tax under this chapter is transferred:
             2138          (a) by a purchaser-lessee;
             2139          (b) to a lessor;
             2140          (c) for consideration; and
             2141          (d) if:
             2142          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             2143      of the tangible personal property;
             2144          (ii) the sale of the tangible personal property to the lessor is intended as a form of
             2145      financing:
             2146          (A) for the property; and
             2147          (B) to the purchaser-lessee; and
             2148          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             2149      is required to:
             2150          (A) capitalize the property for financial reporting purposes; and
             2151          (B) account for the lease payments as payments made under a financing arrangement.
             2152          (69) "Sales price" is as defined in Subsection (57).
             2153          (70) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             2154      amounts charged by a school:
             2155          (i) sales that are directly related to the school's educational functions or activities
             2156      including:
             2157          (A) the sale of:
             2158          (I) textbooks;
             2159          (II) textbook fees;
             2160          (III) laboratory fees;
             2161          (IV) laboratory supplies; or
             2162          (V) safety equipment;
             2163          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             2164      that:


             2165          (I) a student is specifically required to wear as a condition of participation in a
             2166      school-related event or school-related activity; and
             2167          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             2168      place of ordinary clothing;
             2169          (C) sales of the following if the net or gross revenues generated by the sales are
             2170      deposited into a school district fund or school fund dedicated to school meals:
             2171          (I) food and food ingredients; or
             2172          (II) prepared food; or
             2173          (D) transportation charges for official school activities; or
             2174          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             2175      event or school-related activity.
             2176          (b) "Sales relating to schools" does not include:
             2177          (i) bookstore sales of items that are not educational materials or supplies;
             2178          (ii) except as provided in Subsection (70)(a)(i)(B):
             2179          (A) clothing;
             2180          (B) clothing accessories or equipment;
             2181          (C) protective equipment; or
             2182          (D) sports or recreational equipment; or
             2183          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             2184      event or school-related activity if the amounts paid or charged are passed through to a person:
             2185          (A) other than a:
             2186          (I) school;
             2187          (II) nonprofit organization authorized by a school board or a governing body of a
             2188      private school to organize and direct a competitive secondary school activity; or
             2189          (III) nonprofit association authorized by a school board or a governing body of a
             2190      private school to organize and direct a competitive secondary school activity; and
             2191          (B) that is required to collect sales and use taxes under this chapter.
             2192          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2193      commission may make rules defining the term "passed through."
             2194          (71) For purposes of this section and Section 59-12-104 , "school" means:
             2195          (a) an elementary school or a secondary school that:


             2196          (i) is a:
             2197          (A) public school; or
             2198          (B) private school; and
             2199          (ii) provides instruction for one or more grades kindergarten through 12; or
             2200          (b) a public school district.
             2201          (72) "Seller" means a person that makes a sale, lease, or rental of:
             2202          (a) tangible personal property; or
             2203          (b) a service.
             2204          (73) (a) "Semiconductor fabricating or processing materials" means tangible personal
             2205      property:
             2206          (i) used primarily in the process of:
             2207          (A) (I) manufacturing a semiconductor; or
             2208          (II) fabricating a semiconductor; or
             2209          (B) maintaining an environment suitable for a semiconductor; or
             2210          (ii) consumed primarily in the process of:
             2211          (A) (I) manufacturing a semiconductor; or
             2212          (II) fabricating a semiconductor; or
             2213          (B) maintaining an environment suitable for a semiconductor.
             2214          (b) "Semiconductor fabricating or processing materials" includes:
             2215          (i) parts used in the repairs or renovations of tangible personal property described in
             2216      Subsection (73)(a); or
             2217          (ii) a chemical, catalyst, or other material used to:
             2218          (A) produce or induce in a semiconductor a:
             2219          (I) chemical change; or
             2220          (II) physical change;
             2221          (B) remove impurities from a semiconductor; or
             2222          (C) improve the marketable condition of a semiconductor.
             2223          (74) "Senior citizen center" means a facility having the primary purpose of providing
             2224      services to the aged as defined in Section 62A-3-101 .
             2225          (75) "Simplified electronic return" means the electronic return:
             2226          (a) described in Section 318(C) of the agreement; and


             2227          (b) approved by the governing board of the agreement.
             2228          (76) "Solar energy" means the sun used as the sole source of energy for producing
             2229      electricity.
             2230          (77) (a) "Sports or recreational equipment" means an item:
             2231          (i) designed for human use; and
             2232          (ii) that is:
             2233          (A) worn in conjunction with:
             2234          (I) an athletic activity; or
             2235          (II) a recreational activity; and
             2236          (B) not suitable for general use.
             2237          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2238      commission shall make rules:
             2239          (i) listing the items that constitute "sports or recreational equipment"; and
             2240          (ii) that are consistent with the list of items that constitute "sports or recreational
             2241      equipment" under the agreement.
             2242          (78) "State" means the state of Utah, its departments, and agencies.
             2243          (79) "Storage" means any keeping or retention of tangible personal property or any
             2244      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             2245      sale in the regular course of business.
             2246          (80) (a) "Tangible personal property" means personal property that:
             2247          (i) may be:
             2248          (A) seen;
             2249          (B) weighed;
             2250          (C) measured;
             2251          (D) felt; or
             2252          (E) touched; or
             2253          (ii) is in any manner perceptible to the senses.
             2254          (b) "Tangible personal property" includes:
             2255          (i) electricity;
             2256          (ii) water;
             2257          (iii) gas;


             2258          (iv) steam; or
             2259          (v) prewritten computer software.
             2260          (81) (a) "Telephone service" means a two-way transmission:
             2261          (i) by:
             2262          (A) wire;
             2263          (B) radio;
             2264          (C) lightwave; or
             2265          (D) other electromagnetic means; and
             2266          (ii) of one or more of the following:
             2267          (A) a sign;
             2268          (B) a signal;
             2269          (C) writing;
             2270          (D) an image;
             2271          (E) sound;
             2272          (F) a message;
             2273          (G) data; or
             2274          (H) other information of any nature.
             2275          (b) "Telephone service" includes:
             2276          (i) mobile telecommunications service;
             2277          (ii) private communications service; or
             2278          (iii) automated digital telephone answering service.
             2279          (c) "Telephone service" does not include a service or a transaction that a state or a
             2280      political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
             2281      Tax Freedom Act, Pub. L. No. 105-277.
             2282          (82) Notwithstanding where a call is billed or paid, "telephone service address" means:
             2283          (a) if the location described in this Subsection (82)(a) is known, the location of the
             2284      telephone service equipment:
             2285          (i) to which a call is charged; and
             2286          (ii) from which the call originates or terminates;
             2287          (b) if the location described in Subsection (82)(a) is not known but the location
             2288      described in this Subsection (82)(b) is known, the location of the origination point of the signal


             2289      of the telephone service first identified by:
             2290          (i) the telecommunications system of the seller; or
             2291          (ii) if the system used to transport the signal is not that of the seller, information
             2292      received by the seller from its service provider; or
             2293          (c) if the locations described in Subsection (82)(a) or (b) are not known, the location of
             2294      a purchaser's primary place of use.
             2295          (83) (a) "Telephone service provider" means a person that:
             2296          (i) owns, controls, operates, or manages a telephone service; and
             2297          (ii) engages in an activity described in Subsection (83)(a)(i) for the shared use with or
             2298      resale to any person of the telephone service.
             2299          (b) A person described in Subsection (83)(a) is a telephone service provider whether or
             2300      not the Public Service Commission of Utah regulates:
             2301          (i) that person; or
             2302          (ii) the telephone service that the person owns, controls, operates, or manages.
             2303          (84) "Tobacco" means:
             2304          (a) a cigarette;
             2305          (b) a cigar;
             2306          (c) chewing tobacco;
             2307          (d) pipe tobacco; or
             2308          (e) any other item that contains tobacco.
             2309          (85) (a) "Use" means the exercise of any right or power over tangible personal property
             2310      under Subsection 59-12-103 (1), incident to the ownership or the leasing of that property, item,
             2311      or service.
             2312          (b) "Use" does not include the sale, display, demonstration, or trial of that property in
             2313      the regular course of business and held for resale.
             2314          (86) (a) Subject to Subsection (86)(b), "vehicle" means the following that are required
             2315      to be titled, registered, or titled and registered:
             2316          (i) an aircraft as defined in Section 72-10-102 ;
             2317          (ii) a vehicle as defined in Section 41-1a-102 ;
             2318          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             2319          (iv) a vessel as defined in Section 41-1a-102 .


             2320          (b) For purposes of Subsection 59-12-104 (35) only, "vehicle" includes:
             2321          (i) a vehicle described in Subsection (86)(a); or
             2322          (ii) (A) a locomotive;
             2323          (B) a freight car;
             2324          (C) railroad work equipment; or
             2325          (D) other railroad rolling stock.
             2326          (87) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             2327      exchanging a vehicle as defined in Subsection (86).
             2328          (88) (a) Except as provided in Subsection (88)(b), "waste energy facility" means a
             2329      facility that generates electricity:
             2330          (i) using as the primary source of energy waste materials that would be placed in a
             2331      landfill or refuse pit if it were not used to generate electricity, including:
             2332          (A) tires;
             2333          (B) waste coal; or
             2334          (C) oil shale; and
             2335          (ii) in amounts greater than actually required for the operation of the facility.
             2336          (b) "Waste energy facility" does not include a facility that incinerates:
             2337          (i) municipal solid waste;
             2338          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             2339          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             2340          (89) "Watercraft" means a vessel as defined in Section 73-18-2 .
             2341          (90) "Wind energy" means wind used as the sole source of energy to produce
             2342      electricity.
             2343          (91) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             2344      location by the United States Postal Service.
             2345          Section 31. Section 61-2e-101 , which is renumbered from Section 58-55-101 is
             2346      renumbered and amended to read:
             2347     
CHAPTER 2e. UTAH CONSTRUCTION TRADES LICENSING ACT

             2348     
Part 1. General Provisions

             2349           [58-55-101].     61-2e-101. Title.
             2350          This chapter is known as the "Utah Construction Trades Licensing Act."


             2351          Section 32. Section 61-2e-102 , which is renumbered from Section 58-55-102 is
             2352      renumbered and amended to read:
             2353           [58-55-102].     61-2e-102. Definitions.
             2354          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             2355          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
             2356      maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
             2357      except as provided in Subsection (1)(b).
             2358          (b) "Alarm business or company" does not include:
             2359          (i) a person engaged in the manufacture and sale of alarm systems when:
             2360          (A) that person is not engaged in the installation, maintenance, alteration, repair,
             2361      replacement, servicing, or monitoring of alarm systems[,]; and
             2362          (B) the manufacture or sale:
             2363          (I) occurs only at a place of business established by the person engaged in the
             2364      manufacture or sale; and
             2365          (II) does not involve site visits at the place or intended place of installation of an alarm
             2366      system; or
             2367          (ii) an owner of an alarm system, or an employee of the owner of an alarm system who
             2368      is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
             2369      of the alarm system owned by that owner.
             2370          (2) "Alarm company agent" means any individual employed within this state by a
             2371      person engaged in the alarm business.
             2372          (3) "Alarm system" means equipment and devices assembled for the purpose of:
             2373          (a) detecting and signaling unauthorized intrusion or entry into or onto certain
             2374      premises; or
             2375          (b) signaling a robbery or attempted robbery on protected premises.
             2376          (4) "Apprentice electrician" means a person licensed under this chapter as an
             2377      apprentice electrician who is learning the electrical trade under approved supervision of:
             2378          (a) a master electrician[,];
             2379          (b) a residential master electrician[,];
             2380          (c) a journeyman electrician[,]; or
             2381          (d) a residential journeyman electrician.


             2382          (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
             2383      plumber who is learning the plumbing trade under approved supervision of a journeyman
             2384      plumber.
             2385          (6) "Approved supervision" means the immediate supervision of apprentices by
             2386      qualified licensed electricians or plumbers as a part of a planned program of training.
             2387          (7) "Board" means one of the following created in Section 61-2e-201 :
             2388          (a) the Electrician Licensing Board[,];
             2389          (b) Alarm System Security and Licensing Board[,]; or
             2390          (c) Plumbers Licensing Board [created in Section 58-55-201 ].
             2391          (8) "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) "Commission" means the Construction Services Commission created under Section
             2398      [ 58-55-103 ] 61-2e-103 .
             2399          (10) "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) "Construction trades instructor" means a person licensed under this chapter to
             2406      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) (a) "Contractor" means any person who for compensation other than wages as an
             2410      employee undertakes any work in the construction, plumbing, or electrical trade for which
             2411      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          (13) "Department" means the Department of Commerce.
             2426          (14) "Director" means the director of the Division of Real Estate.
             2427          (15) "Division" means the Division of Real Estate.
             2428          [(13)] (16) (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)] (16)(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)] (16)(c).
             2441          [(14)] (17) "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)] (18) "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)] (19) (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)] (20) "Gas appliance" means any device that uses natural gas to produce light,
             2457      heat, power, steam, hot water, refrigeration, or air conditioning.
             2458          [(18)] (21) (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)] (22) (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          (xiv) refineries[,];
             2489          (xv) pipelines[,];
             2490          (xvi) chemical and industrial plants requiring specialized engineering knowledge and
             2491      skill[,];
             2492          (xvii) piers[, and];
             2493          (xviii) foundations[,]; or
             2494          (xix) 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)] (23) "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)] (24) "Individual" means a natural person.
             2501          [(22)] (25) "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)] (26) "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)] (27) "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)] (28) "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)] (29) (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)] (30) (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)] (31) "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)] (32) "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)] (33) "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)] (34) "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)] (35) "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)] (36) "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)] (37) "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)] (38) "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)] (39) "Unlawful conduct" is as defined in [Sections 58-1-501 and 58-55-501 ]
             2581      Section 61-2e-501 .
             2582          [(37)] (40) "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)] (41) "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;
             2603          (ii) approve or disapprove fees adopted by the division under Section 63-38-3.2 ;
             2604          (iii) except where the boards conduct them, conduct all administrative hearings not
             2605      delegated to an administrative law judge relating to the licensing of any applicant;
             2606          (iv) except as otherwise provided in Sections 38-11-207 and [ 58-55-503 ] 61-2e-503 ,
             2607      with the concurrence of the director, impose sanctions against licensees and certificate holders
             2608      with the same authority as the division under Section [ 58-1-401 ] 61-2e-401 ;
             2609          (v) advise the director on the administration and enforcement of any matters affecting
             2610      the division and the construction industry;
             2611          (vi) advise the director on matters affecting the division budget;
             2612          (vii) advise and assist trade associations in conducting construction trade seminars and
             2613      industry education and promotion; and
             2614          (viii) perform other duties as provided by this chapter.
             2615          [(2) (a) Initially the commission shall be comprised of the five members of the
             2616      Contractors Licensing Board and two of the three chair persons from the Plumbers Licensing
             2617      Board, the Alarm System Security and Licensing Board, and the Electricians Licensing Board.]
             2618          [(b) The terms of office of the commission members who are serving on the
             2619      Contractors Licensing Board shall continue as they serve on the commission.]
             2620          [(c)] (2) [Beginning July 1, 2004, the] The commission shall be comprised of nine
             2621      members appointed by the executive director with the approval of the governor from the
             2622      following groups:
             2623          [(i)] (a) one member shall be a licensed general engineering contractor;
             2624          [(ii)] (b) one member shall be a licensed general building contractor;
             2625          [(iii)] (c) two members shall be licensed residential and small commercial contractors;
             2626          [(iv)] (d) three members shall be the three chair persons from:
             2627          (i) the Plumbers Licensing Board[,];
             2628          (ii) the Alarm System Security and Licensing Board[,]; and
             2629          (iii) the Electricians Licensing Board; and


             2630          [(v)] (e) two members shall be from the general public[, provided, however that the
             2631      certified public accountant on the Contractors Licensing Board will continue to serve until the
             2632      current term expires, after which both members under this Subsection (2)(c)(v)(d) shall be
             2633      appointed from the general public].
             2634          (3) (a) Except as required by Subsection (3)(b), as terms of current commission
             2635      members expire, the executive director with the approval of the governor shall appoint each
             2636      new member or reappointed member to a four-year term ending June 30.
             2637          (b) Notwithstanding the requirements of Subsection (3)(a), the executive director with
             2638      the approval of the governor shall, at the time of appointment or reappointment, adjust the
             2639      length of terms to stagger the terms of commission members so that approximately 1/2 of the
             2640      commission members are appointed every two years.
             2641          (c) A commission member may not serve more than two consecutive terms.
             2642          (4) The commission shall elect annually one of its members as chair, for a term of one
             2643      year.
             2644          (5) When a vacancy occurs in the membership for any reason, the replacement shall be
             2645      appointed for the unexpired term.
             2646          (6) (a) Members may not receive compensation or benefits for their services, but may
             2647      receive per diem and expenses incurred in the performance of the members' official duties at
             2648      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2649          (b) Members may decline to receive per diem and expenses for their service.
             2650          (7) (a) The commission shall meet at least monthly unless the director determines
             2651      otherwise.
             2652          (b) The director may call additional meetings:
             2653          (i) at the director's discretion[,];
             2654          (ii) upon the request of the chair[,]; or
             2655          (iii) upon the written request of four or more commission members.
             2656          (8) (a) Five members constitute a quorum for the transaction of business.
             2657          (b) If a quorum is present when a vote is taken, the affirmative vote of commission
             2658      members present is the act of the commission.
             2659          (9) The commission shall comply with the procedures and requirements of Title 13,
             2660      Chapter 1, Department of Commerce, and Title 63, Chapter 46b, Administrative Procedures


             2661      Act, in all of its adjudicative proceedings.
             2662          Section 34. Section 61-2e-104 is enacted to read:
             2663          61-2e-104. Adjudicative proceedings.
             2664          (1) The division, the commission, and the boards created under this chapter shall
             2665      comply with the procedures and requirements of Title 13, Chapter 1, Department of
             2666      Commerce, and Title 63, Chapter 46b, Administrative Procedures Act, in all of their
             2667      adjudicative proceedings as defined by Subsection 63-46b-2 (1).
             2668          (2) Before proceeding under Section 63-46b-20 , the division shall review the proposed
             2669      action with a committee of no less than three licensees appointed by the chair of the licensing
             2670      board created under this chapter for the profession of the person against whom the action is
             2671      proposed.
             2672          (3) Notwithstanding Title 63, Chapter 46b, Administrative Procedures Act, a warning
             2673      or final disposition letter that does not constitute disciplinary action against the addressee,
             2674      issued in response to a complaint of unprofessional or unlawful conduct under this chapter,
             2675      does not constitute an adjudicative proceeding.
             2676          Section 35. Section 61-2e-201 , which is renumbered from Section 58-55-201 is
             2677      renumbered and amended to read:
             2678     
Part 2. Boards

             2679           [58-55-201].     61-2e-201. Boards created -- Duties.
             2680          (1) There is created a Plumbers Licensing Board, an Alarm System Security and
             2681      Licensing Board, and an Electricians Licensing Board. Members of the boards shall be
             2682      selected to provide representation as [follows] provided in this Subsection (1):
             2683          (a) The Plumbers Licensing Board consists of five members as follows:
             2684          (i) four members shall be licensed journeyman plumbers, of whom two shall be
             2685      licensed plumbing contractors; and
             2686          (ii) one member shall be from the public at large with no history of involvement in the
             2687      construction trades.
             2688          (b) (i) The Alarm System Security and Licensing Board consists of five members as
             2689      follows:
             2690          (A) three individuals who are officers or owners of a licensed alarm business;
             2691          (B) one individual from among nominees of the Utah Peace Officers Association; and


             2692          (C) one individual representing the general public.
             2693          (ii) The Alarm System Security and Licensing Board shall designate one of its
             2694      members on a permanent or rotating basis to:
             2695          (A) assist the division in reviewing complaints concerning the unlawful or
             2696      unprofessional conduct of a licensee; and
             2697          (B) advise the division in its investigation of [these] the complaints described in
             2698      Subsection (1)(b)(ii)(A).
             2699          (iii) A board member who has[, under Subsection (3),] reviewed a complaint or
             2700      advised in its investigation is disqualified from participating with the board when the board
             2701      serves as a presiding officer in an adjudicative proceeding concerning the complaint.
             2702          (c) The Electricians Licensing Board consists of five members as follows:
             2703          (i) two members shall be licensed from among the license classifications of master or
             2704      journeyman electrician, of whom:
             2705          (A) one shall represent a union organization; and
             2706          (B) one shall be selected having no union affiliation;
             2707          (ii) two shall be licensed electrical contractors of whom:
             2708          (A) one shall represent a union organization; and
             2709          (B) one shall be selected having no union affiliation; and
             2710          (iii) one member shall be from the public at large with no history of involvement in the
             2711      construction trades or union affiliation.
             2712          (2) (a) The executive director shall appoint the members of the boards created by this
             2713      section.
             2714          (b) In appointing these members the executive director shall give consideration to
             2715      recommendations by members of the respective occupations and professions and by their
             2716      organizations.
             2717          (c) The names of all persons appointed to boards shall be submitted to the governor for
             2718      confirmation or rejection. If an appointee is rejected by the governor, the executive director
             2719      shall appoint another person in the same manner as set forth in Subsection (2)(a).
             2720          (3) (a) Except as required by Subsection (3)(b), as terms of current board members
             2721      expire, the executive director shall appoint each new member or reappointed member to a
             2722      four-year term.


             2723          (b) Notwithstanding the requirements of Subsection (3)(a), the executive director shall,
             2724      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms
             2725      of board members are staggered so that approximately half of the board is appointed every two
             2726      years.
             2727          (c) A board member may not serve more than two consecutive terms, and a board
             2728      member who ceases to serve on a board may not serve again on that board until after the
             2729      expiration of a two-year period beginning from that cessation of service.
             2730          (d) (i) When a vacancy occurs in the membership for any reason, the replacement shall
             2731      be appointed for the unexpired term.
             2732          (ii) After filling that term, the replacement member may be appointed for only one
             2733      additional full term.
             2734          (e) If a board member fails or refuses to fulfill the responsibilities and duties of a board
             2735      member, including the attendance at board meetings, the executive director with the approval
             2736      of the board may remove the board member and replace the member in accordance with this
             2737      section.
             2738          [(2)] (4) The duties, functions, and responsibilities of each board include the following:
             2739          (a) recommending to the commission appropriate rules;
             2740          (b) recommending to the commission policy and budgetary matters;
             2741          (c) approving and establishing a passing score for applicant examinations;
             2742          (d) overseeing the screening of applicants for licensing, renewal, reinstatement, and
             2743      relicensure;
             2744          (e) assisting the commission in establishing standards of supervision for students or
             2745      persons in training to become qualified to obtain a license in the occupation or profession it
             2746      represents; and
             2747          (f) acting as presiding officer in conducting hearings associated with the adjudicative
             2748      proceedings and in issuing recommended orders when so authorized by the commission.
             2749          (5) A majority of the board members constitutes a quorum. A quorum is sufficient
             2750      authority for the board to act.
             2751          (6) (a) A member who is not a government employee shall receive no compensation or
             2752      benefits for the member's services, but may receive per diem and expenses incurred in the
             2753      performance of the member's official duties at the rates established by the Division of Finance


             2754      under Sections 63A-3-106 and 63A-3-107 .
             2755          (b) A member may decline to receive per diem and expenses for the member's service.
             2756          (7) Each board shall annually designate one of its members to serve as chair for a
             2757      one-year period.
             2758          (8) A board member may not be a member of the faculty of or have any financial
             2759      interest in any vocational or professional college or school which provides continuing
             2760      education to any licensee if that continuing education is required by statute or rule.
             2761          Section 36. Section 61-2e-301 , which is renumbered from Section 58-55-301 is
             2762      renumbered and amended to read:
             2763     
Part 3. Licensing

             2764           [58-55-301].     61-2e-301. License required -- License classifications --
             2765      Denial.
             2766          (1) (a) Any person engaged in the construction trades licensed under this chapter, as a
             2767      contractor regulated under this chapter, as an alarm business or company, or as an alarm
             2768      company agent, shall become licensed under this chapter before engaging in that trade or
             2769      contracting activity in this state unless specifically exempted from licensure under Section
             2770      [ 58-1-307 or 58-55-305 ] 61-2e-305 .
             2771          (b) The license issued under this chapter and the business license issued by the local
             2772      jurisdiction in which the licensee has its principal place of business shall be the only licenses
             2773      required for the licensee to engage in a trade licensed by this chapter, within the state.
             2774          (c) Neither the state nor any of its political subdivisions may require of a licensee any
             2775      additional business licenses, registrations, certifications, contributions, donations, or anything
             2776      else established for the purpose of qualifying a licensee under this chapter to do business in that
             2777      local jurisdiction, except for:
             2778          (i) contract prequalification procedures required by state agencies[,]; or
             2779          (ii) the payment of any fee for the license, registration, or certification established as a
             2780      condition to do business in that local jurisdiction.
             2781          (2) The division shall issue licenses under this chapter to qualified persons in the
             2782      following classifications:
             2783          (a) general engineering contractor;
             2784          (b) general building contractor;


             2785          (c) residential and small commercial contractor;
             2786          (d) specialty contractor;
             2787          (e) journeyman plumber;
             2788          (f) apprentice plumber;
             2789          (g) residential journeyman plumber;
             2790          (h) residential apprentice plumber;
             2791          (i) master electrician;
             2792          (j) residential master electrician;
             2793          (k) journeyman electrician;
             2794          (l) residential journeyman electrician;
             2795          (m) apprentice electrician;
             2796          (n) construction trades instructor:
             2797          (i) general engineering classification;
             2798          (ii) general building classification;
             2799          (iii) electrical classification;
             2800          (iv) plumbing classification; and
             2801          (v) mechanical classification;
             2802          (o) alarm company; and
             2803          (p) alarm company agent.
             2804          (3) An applicant may apply for a license in one or more classification or specialty
             2805      contractor subclassification. A license shall be granted in each classification or
             2806      subclassification for which the applicant qualifies. A separate application and fee must be
             2807      submitted for each license classification or subclassification.
             2808          (4) (a) Each license applicant shall apply to the division in writing upon forms
             2809      available from the division. Each completed application shall:
             2810          (i) contain documentation of the particular qualifications required of the applicant;
             2811          (ii) include the applicant's Social Security number;
             2812          (iii) be verified by the applicant; and
             2813          (iv) be accompanied by the appropriate fees.
             2814          (b) An applicant's Social Security number is a private record under Subsection
             2815      63-2-302 (1)(h).


             2816          (5) (a) A license shall be issued to an applicant who submits a complete application if
             2817      the division determines that the applicant meets the qualifications of licensure.
             2818          (b) A written notice of additional proceedings shall be provided to an applicant who
             2819      submits a complete application, but who has been, is, or will be placed under investigation by
             2820      the division for conduct directly bearing upon the applicant's qualifications for licensure, if the
             2821      outcome of additional proceedings is required to determine the division's response to the
             2822      application.
             2823          (c) A written notice of denial of licensure shall be provided to an applicant who
             2824      submits a complete application if the division determines that the applicant does not meet the
             2825      qualifications of licensure.
             2826          (d) A written notice of incomplete application and conditional denial of licensure shall
             2827      be provided to an applicant who submits an incomplete application. This notice shall advise
             2828      the applicant that the application:
             2829          (i) is incomplete; and
             2830          (ii) is denied, unless the applicant:
             2831          (A) corrects the deficiencies within the time period specified in the notice; and
             2832          (B) otherwise meets all qualifications for licensure.
             2833          (6) Before any person is issued a license under this title, all requirements for that
             2834      license as established under this chapter and by rule shall be met.
             2835          (7) If all requirements are met for the specific license, the division shall issue the
             2836      license.
             2837          Section 37. Section 61-2e-302 , which is renumbered from Section 58-55-302 is
             2838      renumbered and amended to read:
             2839           [58-55-302].     61-2e-302. Qualifications for licensure.
             2840          (1) Each applicant for a license under this chapter shall:
             2841          (a) submit an application prescribed by the division;
             2842          (b) pay a fee as determined by the department under Section 63-38-3.2 ;
             2843          (c) (i) meet the examination requirements established by rule by the commission with
             2844      the concurrence of the director, except for the classifications of apprentice plumber, residential
             2845      apprentice plumber, and apprentice electrician for whom no examination is required; or
             2846          (ii) if required in Section [ 58-55-304 ] 61-2e-304 , the individual qualifier must pass the


             2847      required examination if the applicant is a business entity;
             2848          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
             2849          (e) if an applicant for a contractor's license:
             2850          (i) produce satisfactory evidence of financial responsibility, except for a construction
             2851      trades instructor for whom evidence of financial responsibility is not required;
             2852          (ii) produce satisfactory evidence of knowledge and experience in the construction
             2853      industry and knowledge of the principles of the conduct of business as a contractor, reasonably
             2854      necessary for the protection of the public health, safety, and welfare; and
             2855          (iii) (A) be a licensed master electrician if an applicant for an electrical contractor's
             2856      license; or
             2857          (B) a licensed master residential electrician if an applicant for a residential electrical
             2858      contractor's license; or
             2859          (iv) be a journeyman plumber or residential journeyman plumber if an applicant for a
             2860      plumbing contractor's license; and
             2861          (f) if an applicant for a construction trades instructor license, satisfy any additional
             2862      requirements established by rule.
             2863          (2) After approval of an applicant for a contractor's license by the applicable board and
             2864      the division, the applicant shall file the following with the division before the division issues
             2865      the license:
             2866          (a) proof of workers' compensation insurance which covers employees of the applicant
             2867      in accordance with applicable Utah law;
             2868          (b) proof of public liability insurance in coverage amounts and form established by rule
             2869      except for a construction trades instructor for whom public liability insurance is not required;
             2870      and
             2871          (c) proof of registration as required by applicable law with the:
             2872          (i) Utah Department of Commerce;
             2873          (ii) Division of Corporations and Commercial Code;
             2874          (iii) Division of Workforce Information and Payment Services in the Department of
             2875      Workforce Services, for purposes of Title 35A, Chapter 4, Employment Security Act;
             2876          (iv) State Tax Commission; and
             2877          (v) Internal Revenue Service.


             2878          (3) In addition to the general requirements for each applicant in Subsection (1),
             2879      applicants shall comply with the following requirements to be licensed in the [following]
             2880      classifications of this Subsection (3):
             2881          (a) A journeyman plumber applicant shall produce satisfactory evidence of:
             2882          (i) successful completion of the equivalent of at least four years of full-time training
             2883      and instruction as a licensed apprentice plumber under supervision of a licensed journeyman
             2884      plumber and in accordance with a planned program of training approved by the division;
             2885          (ii) at least eight years of full-time experience approved by the division in collaboration
             2886      with the Plumbers Licensing Board; or
             2887          (iii) satisfactory evidence of meeting the qualifications determined by the board to be
             2888      equivalent to Subsection (3)(a)(i) or (a)(ii).
             2889          (b) A residential journeyman plumber shall produce satisfactory evidence of:
             2890          (i) completion of the equivalent of at least three years of full-time training and
             2891      instruction as a licensed apprentice plumber under the supervision of a licensed residential
             2892      journeyman plumber or licensed journeyman plumber in accordance with a planned program of
             2893      training approved by the division;
             2894          (ii) completion of at least six years of full-time experience in a maintenance or repair
             2895      trade involving substantial plumbing work; or
             2896          (iii) meeting the qualifications determined by the board to be equivalent to Subsection
             2897      (3)(b)(i) or (b)(ii).
             2898          (c) (i) A master electrician applicant shall produce satisfactory evidence that the
             2899      applicant:
             2900          (A) (I) is a graduate electrical engineer of an accredited college or university approved
             2901      by the division; and
             2902          (II) has one year of practical electrical experience as a licensed apprentice electrician;
             2903          (B) (I) is a graduate of an electrical trade school, having received an associate of
             2904      applied sciences degree following successful completion of a course of study approved by the
             2905      division[,]; and
             2906          (II) has two years of practical experience as a licensed journeyman electrician;
             2907          (C) has four years of practical experience as a journeyman electrician; or
             2908          (D) meets the qualifications determined by the board to be equivalent to Subsection


             2909      (3)(c)(i)(A), (B), or (C).
             2910          (ii) (A) An individual holding a valid Utah license as a master electrician, based on at
             2911      least eight years of practical experience as a licensed apprentice under the supervision of a
             2912      licensed journeyman or master electrician, in effect immediately prior to May 3, 2004, is on
             2913      and after May 3, 2004, considered to hold a current license under this chapter and satisfies the
             2914      requirements of this Subsection (3)(c) for the purpose of renewal or reinstatement of that
             2915      license under Section [ 58-55-303 ] 61-2e-303 .
             2916          (B) An individual who has less than four years of practical experience as a licensed
             2917      apprentice under the supervision of a licensed journeyman or master electrician prior to May 3,
             2918      2004, shall complete the education requirements of Subsection (3)(c)(i)(A) or (B) to qualify for
             2919      licensing as a master electrician.
             2920          (C) An individual who has more than four but less than six years of practical
             2921      experience as a licensed apprentice under the supervision of a licensed journeyman or master
             2922      electrician prior to May 3, 2004, may satisfy the education requirements of Subsection
             2923      (3)(c)(i)(A) or (B) by successfully passing a competency placement test approved by the board
             2924      and administered at a Utah state institution of higher education.
             2925          (D) An individual who has more than six but less than eight years of practical
             2926      experience as a licensed apprentice under the supervision of a licensed journeyman or master
             2927      electrician prior to May 3, 2004, satisfies the education requirements of this Subsection (3)(c)
             2928      by completing the eight-year term of practical experience within a reasonable time frame
             2929      subsequent to May 3, 2004, as established by board rule in accordance with Title 63, Chapter
             2930      46a, Utah Administrative Rulemaking Act.
             2931          (d) A master residential electrician applicant shall produce satisfactory evidence that
             2932      the applicant:
             2933          (i) has at least two years of practical experience as a residential journeyman electrician;
             2934      or
             2935          (ii) meets the qualifications determined by the board to be equivalent to this practical
             2936      experience.
             2937          (e) (i) A journeyman electrician applicant shall produce satisfactory evidence that the
             2938      applicant:
             2939          (A) has successfully completed at least four years of full-time training and instruction


             2940      as a licensed apprentice electrician under the supervision of a master electrician or journeyman
             2941      electrician and in accordance with a planned training program approved by the division;
             2942          (B) has at least eight years of full-time experience approved by the division in
             2943      collaboration with the Electricians Licensing Board; or
             2944          (C) meets the qualifications determined by the board to be equivalent to Subsection
             2945      (3)(e)(i)(A) or (B).
             2946          (ii) An individual holding a valid Utah license as a journeyman electrician, based on at
             2947      least six years of full-time experience approved by the division in collaboration with the
             2948      Electricians Licensing Board in effect immediately prior to May 3, 2004, is on and after May 3,
             2949      2004, considered to hold a current license under this chapter and satisfies the requirements of
             2950      Subsection (3)(e)(i)(B) for the purpose of renewal or reinstatement of that license under
             2951      Section [ 58-55-303 ] 61-2e-303 .
             2952          (iii) An individual who has more than six but less than eight years of full-time
             2953      experience approved by the division in collaboration with the Electricians Licensing Board
             2954      prior to May 3, 2004, satisfies the requirements of Subsection (3)(e)(i) by completing the
             2955      eight-year term of practical experience within a reasonable time frame subsequent to May 3,
             2956      2004, as established by board rule made in accordance with Title 63, Chapter 46a, Utah
             2957      Administrative Rulemaking Act.
             2958          (f) A residential journeyman electrician applicant shall produce satisfactory evidence
             2959      that the applicant:
             2960          (i) has successfully completed two years of training in an electrical training program
             2961      approved by the division;
             2962          (ii) has four years of practical experience in wiring, installing, and repairing electrical
             2963      apparatus and equipment for light, heat, and power under the supervision of a licensed master,
             2964      journeyman, residential master, or residential journeyman electrician; or
             2965          (iii) meets the qualifications determined by the division and applicable board to be
             2966      equivalent to Subsection (3)(f)(i) or (ii).
             2967          (g) The conduct of licensed apprentice electricians and their licensed supervisors shall
             2968      be in accordance with the [following] requirements of this Subsection (3)(g):
             2969          (i) A licensed apprentice electrician shall be under the immediate supervision of a
             2970      licensed master, journeyman, residential master, or residential journeyman electrician. An


             2971      apprentice in the fourth year of training may work without supervision for a period not to
             2972      exceed eight hours in any 24-hour period.
             2973          (ii) A licensed master, journeyman, residential master, or residential journeyman
             2974      electrician may have under immediate supervision on a residential project up to three licensed
             2975      apprentice electricians.
             2976          (iii) A licensed master or journeyman electrician may have under immediate
             2977      supervision on nonresidential projects only one licensed apprentice electrician.
             2978          (h) An alarm company applicant shall:
             2979          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
             2980      the applicant who:
             2981          (A) demonstrates 6,000 hours of experience in the alarm company business;
             2982          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
             2983      company business or in a construction business; and
             2984          (C) passes an examination component established by rule by the commission with the
             2985      concurrence of the director;
             2986          (ii) if a corporation, provide:
             2987          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             2988      of all corporate officers, directors, and those responsible management personnel employed
             2989      within the state or having direct responsibility for managing operations of the applicant within
             2990      the state; and
             2991          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             2992      of all shareholders owning 5% or more of the outstanding shares of the corporation, except this
             2993      [shall not be] is not required if the stock is publicly listed and traded;
             2994          (iii) if a limited liability company, provide:
             2995          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             2996      of all company officers, and those responsible management personnel employed within the
             2997      state or having direct responsibility for managing operations of the applicant within the state;
             2998      and
             2999          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             3000      of all individuals owning 5% or more of the equity of the company;
             3001          (iv) if a partnership, the names, addresses, dates of birth, Social Security numbers, and


             3002      fingerprint cards of all general partners, and those responsible management personnel
             3003      employed within the state or having direct responsibility for managing operations of the
             3004      applicant within the state;
             3005          (v) if a proprietorship, the names, addresses, dates of birth, Social Security numbers,
             3006      and fingerprint cards of the proprietor, and those responsible management personnel employed
             3007      within the state or having direct responsibility for managing operations of the applicant within
             3008      the state;
             3009          (vi) be of good moral character in that officers, directors, shareholders described in
             3010      Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel have not
             3011      been convicted of a felony, a misdemeanor involving moral turpitude, or any other crime that
             3012      when considered with the duties and responsibilities of an alarm company is considered by the
             3013      board to indicate that the best interests of the public are served by granting the applicant a
             3014      license;
             3015          (vii) document that none of the applicant's officers, directors, shareholders described in
             3016      Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel have
             3017      been declared by any court of competent jurisdiction incompetent by reason of mental defect or
             3018      disease and not been restored;
             3019          (viii) document that none of the applicant's officers, directors, shareholders described
             3020      in Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel are
             3021      currently suffering from habitual drunkenness or from drug addiction or dependence;
             3022          (ix) file and maintain with the division evidence of:
             3023          (A) comprehensive general liability insurance in form and in amounts to be established
             3024      by rule by the commission with the concurrence of the director;
             3025          (B) workers' compensation insurance that covers employees of the applicant in
             3026      accordance with applicable Utah law; and
             3027          (C) registration as is required by applicable law with the:
             3028          (I) Division of Corporations and Commercial Code;
             3029          (II) Division of Workforce Information and Payment Services in the Department of
             3030      Workforce Services, for purposes of Title 35A, Chapter 4, Employment Security Act;
             3031          (III) State Tax Commission; and
             3032          (IV) Internal Revenue Service; and


             3033          (x) meet with the division and board.
             3034          (i) Each applicant for licensure as an alarm company agent shall:
             3035          (i) submit an application in a form prescribed by the division accompanied by
             3036      fingerprint cards;
             3037          (ii) pay a fee determined by the department under Section 63-38-3.2 ;
             3038          (iii) be of good moral character in that the applicant has not been convicted of a felony,
             3039      a misdemeanor involving moral turpitude, or any other crime that when considered with the
             3040      duties and responsibilities of an alarm company agent is considered by the board to indicate
             3041      that the best interests of the public are served by granting the applicant a license;
             3042          (iv) not have been declared by any court of competent jurisdiction incompetent by
             3043      reason of mental defect or disease and not been restored;
             3044          (v) not be currently suffering from habitual drunkenness or from drug addiction or
             3045      dependence; and
             3046          (vi) meet with the division and board if requested by the division or the board.
             3047          (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             3048      division may make rules establishing when Federal Bureau of Investigation records shall be
             3049      checked for applicants as an alarm company or alarm company agent.
             3050          (5) To determine if an applicant meets the qualifications of Subsections (3)(h)(vi) and
             3051      (3)(i)(iii), the division shall provide an appropriate number of copies of fingerprint cards to the
             3052      Department of Public Safety with the division's request to:
             3053          (a) conduct a search of records of the Department of Public Safety for criminal history
             3054      information relating to:
             3055          (i) each applicant for licensure as an alarm company or alarm company agent; and
             3056       &