S.B. 29

1

LICENSING OF CRANE OPERATORS
2 2005 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Gene Davis
5
6 LONG TITLE
7 General Description:
8 This bill modifies the Construction Trades Licensing Chapter of the Occupations and
9 Professions Title by providing for the licensing of crane operators.
10 Highlighted Provisions:
11 This bill:
12 . provides for definitions related to the licensing of crane operators;
13 . provides qualifications for licensing as a crane operator; and
14 . provides that it is unlawful conduct to operate a crane that requires a licensed crane
15 operator without that license.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 This bill takes effect on July 1, 2005.
20 Utah Code Sections Affected:
21 AMENDS:
22 58-55-102, as last amended by Chapters 39 and 75, Laws of Utah 2004
23 58-55-301, as last amended by Chapter 317, Laws of Utah 2000
24 58-55-302, as last amended by Chapters 90 and 236, Laws of Utah 2004
25 58-55-303, as last amended by Chapter 198, Laws of Utah 2001
26 58-55-501 (Effective 07/01/05), as last amended by Chapter 45, Laws of Utah 2004
27

28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 58-55-102 is amended to read:
30 58-55-102. Definitions.
31 In addition to the definitions in Section 58-1-102 , as used in this chapter:
32 (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
33 maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
34 except as provided in Subsection (1)(b).
35 (b) "Alarm business or company" does not include:
36 (i) a person engaged in the manufacture and sale of alarm systems when that person is
37 not engaged in the installation, maintenance, alteration, repair, replacement, servicing, or
38 monitoring of alarm systems, and the manufacture or sale occurs only at a place of business
39 established by the person engaged in the manufacture or sale and does not involve site visits at
40 the place or intended place of installation of an alarm system; or
41 (ii) an owner of an alarm system, or an employee of the owner of an alarm system who
42 is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
43 of the alarm system owned by that owner.
44 (2) "Alarm company agent" means any individual employed within this state by a
45 person engaged in the alarm business.
46 (3) "Alarm system" means equipment and devices assembled for the purpose of:
47 (a) detecting and signaling unauthorized intrusion or entry into or onto certain
48 premises; or
49 (b) signaling a robbery or attempted robbery on protected premises.
50 (4) "Apprentice electrician" means a person licensed under this chapter as an
51 apprentice electrician who is learning the electrical trade under approved supervision of a
52 master electrician, residential master electrician, a journeyman electrician, or a residential
53 journeyman electrician.
54 (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
55 plumber who is learning the plumbing trade under approved supervision of a journeyman
56 plumber.
57 (6) "Approved supervision" means the immediate supervision of apprentices by
58 qualified licensed electricians or plumbers as a part of a planned program of training.

59 (7) "Board" means the Electrician Licensing Board, Alarm System Security and
60 Licensing Board, or Plumbers Licensing Board created in Section 58-55-201 .
61 (8) "Combustion system" means an assembly consisting of:
62 (a) piping and components with a means for conveying, either continuously or
63 intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
64 appliance;
65 (b) the electric control and combustion air supply and venting systems; and
66 (c) components intended to achieve control of quantity, flow, and pressure.
67 (9) "Commission" means the Construction Services Commission created under Section
68 58-55-103 .
69 (10) "Construction trade" means any trade or occupation involving:
70 (a) construction, alteration, remodeling, repairing, wrecking or demolition, addition to,
71 or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation or
72 other project, development, or improvement to other than personal property; or
73 (b) installation or repair of a residential or commercial natural gas appliance or
74 combustion system.
75 (11) "Construction trades instructor" means a person licensed under this chapter to
76 teach one or more construction trades in both a classroom and project environment, where a
77 project is intended for sale to or use by the public and is completed under the direction of the
78 instructor, who has no economic interest in the project.
79 (12) (a) "Contractor" means any person who for compensation other than wages as an
80 employee undertakes any work in the construction, plumbing, or electrical trade for which
81 licensure is required under this chapter and includes:
82 (i) a person who builds any structure on his own property for the purpose of sale or
83 who builds any structure intended for public use on his own property;
84 (ii) any person who represents himself to be a contractor by advertising or any other
85 means;
86 (iii) any person engaged as a maintenance person, other than an employee, who
87 regularly engages in activities set forth under the definition of "construction trade";
88 (iv) any person engaged in any construction trade for which licensure is required under
89 this chapter; or

90 (v) a construction manager who performs management and counseling services on a
91 construction project for a fee.
92 (b) "Contractor" does not include an alarm company or alarm company agent.
93 (13) "Crane operator" means an individual engaged in operating a crane, which for
94 purposes of this chapter is a power-operated hoisting machine used in construction, demolition,
95 or excavation work that has a power-operated winch, load-line, and boom moving laterally by
96 the rotation of the machine on a carrier and has a manufacturer rated lifting capacity of at least
97 ten tons. It does not include operating a fork lift, digger derrick truck, aircraft, bucket truck,
98 knuckle boom, trolley boom, or a vehicle or machine not using a power-operated winch and
99 load-line.
100 [(13)] (14) (a) "Electrical trade" means the performance of any electrical work involved
101 in the installation, construction, alteration, change, repair, removal, or maintenance of facilities,
102 buildings, or appendages or appurtenances.
103 (b) "Electrical trade" does not include:
104 (i) transporting or handling electrical materials;
105 (ii) preparing clearance for raceways for wiring; or
106 (iii) work commonly done by unskilled labor on any installations under the exclusive
107 control of electrical utilities.
108 (c) For purposes of Subsection [(13)] (14)(b):
109 (i) no more than one unlicensed person may be so employed unless more than five
110 licensed electricians are employed by the shop; and
111 (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio
112 permitted by this Subsection [(13)] (14)(c).
113 [(14)] (15) "Employee" means an individual as defined by the division by rule giving
114 consideration to the definition adopted by the Internal Revenue Service and the Department of
115 Workforce Services.
116 [(15)] (16) "Engage in a construction trade" means to:
117 (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
118 in a construction trade; or
119 (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
120 to believe one is or will act as a contractor.

121 [(16)] (17) (a) "Financial responsibility" means a demonstration of a current and
122 expected future condition of financial solvency evidencing a reasonable expectation to the
123 division and the board that an applicant or licensee can successfully engage in business as a
124 contractor without jeopardy to the public health, safety, and welfare.
125 (b) Financial responsibility may be determined by an evaluation of the total history
126 concerning the licensee or applicant including past, present, and expected condition and record
127 of financial solvency and business conduct.
128 [(17)] (18) "Gas appliance" means any device that uses natural gas to produce light,
129 heat, power, steam, hot water, refrigeration, or air conditioning.
130 [(18)] (19) (a) "General building contractor" means a person licensed under this
131 chapter as a general building contractor qualified by education, training, experience, and
132 knowledge to perform or superintend construction of structures for the support, shelter, and
133 enclosure of persons, animals, chattels, or movable property of any kind or any of the
134 components of that construction except plumbing, electrical work, mechanical work, and
135 manufactured housing installation, for which the general building contractor shall employ the
136 services of a contractor licensed in the particular specialty, except that a general building
137 contractor engaged in the construction of single-family and multifamily residences up to four
138 units may perform the mechanical work and hire a licensed plumber or electrician as an
139 employee.
140 (b) The division may by rule exclude general building contractors from engaging in the
141 performance of other construction specialties in which there is represented a substantial risk to
142 the public health, safety, and welfare, and for which a license is required unless that general
143 building contractor holds a valid license in that specialty classification.
144 [(19)] (20) (a) "General engineering contractor" means a person licensed under this
145 chapter as a general engineering contractor qualified by education, training, experience, and
146 knowledge to perform construction of fixed works in any of the following: irrigation, drainage,
147 water, power, water supply, flood control, inland waterways, harbors, railroads, highways,
148 tunnels, airports and runways, sewers and bridges, refineries, pipelines, chemical and industrial
149 plants requiring specialized engineering knowledge and skill, piers, and foundations, or any of
150 the components of those works.
151 (b) A general engineering contractor may not perform construction of structures built

152 primarily for the support, shelter, and enclosure of persons, animals, and chattels.
153 [(20)] (21) "Immediate supervision" means reasonable direction, oversight, inspection,
154 and evaluation of the work of a person, in or out of the immediate presence of the supervising
155 person, so as to ensure that the end result complies with applicable standards.
156 [(21)] (22) "Individual" means a natural person.
157 [(22)] (23) "Journeyman electrician" means a person licensed under this chapter as a
158 journeyman electrician having the qualifications, training, experience, and knowledge to wire,
159 install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
160 [(23)] (24) "Journeyman plumber" means a person licensed under this chapter as a
161 journeyman plumber having the qualifications, training, experience, and technical knowledge
162 to engage in the plumbing trade.
163 [(24)] (25) "Master electrician" means a person licensed under this chapter as a master
164 electrician having the qualifications, training, experience, and knowledge to properly plan,
165 layout, and supervise the wiring, installation, and repair of electrical apparatus and equipment
166 for light, heat, power, and other purposes.
167 [(25)] (26) "Person" means a natural person, sole proprietorship, joint venture,
168 corporation, limited liability company, association, or organization of any type.
169 [(26)] (27) (a) "Plumbing trade" means the performance of any mechanical work
170 pertaining to the installation, alteration, change, repair, removal, maintenance, or use in
171 buildings, or within three feet beyond the outside walls of buildings of pipes, fixtures, and
172 fittings for:
173 (i) delivery of the water supply;
174 (ii) discharge of liquid and water carried waste; or
175 (iii) the building drainage system within the walls of the building.
176 (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
177 fixtures and fixture traps, soil, waste and vent pipes, and the building drain and roof drains
178 together with their devices, appurtenances, and connections where installed within the outside
179 walls of the building.
180 [(27)] (28) (a) "Ratio of apprentices" means, for the purpose of determining
181 compliance with the requirements for planned programs of training and electrician apprentice
182 licensing applications, the shop ratio of apprentice electricians to journeyman or master

183 electricians shall be one journeyman or master electrician to one apprentice on industrial and
184 commercial work, and one journeyman or master electrician to three apprentices on residential
185 work.
186 (b) On-the-job training shall be under circumstances in which the ratio of apprentices
187 to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
188 three apprentices to one supervisor on residential projects.
189 [(28)] (29) "Residential and small commercial contractor" means a person licensed
190 under this chapter as a residential and small commercial contractor qualified by education,
191 training, experience, and knowledge to perform or superintend the construction of
192 single-family residences, multifamily residences up to four units, and commercial construction
193 of not more than three stories above ground and not more than 20,000 square feet, or any of the
194 components of that construction except plumbing, electrical work, mechanical work, and
195 manufactured housing installation, for which the residential and small commercial contractor
196 shall employ the services of a contractor licensed in the particular specialty, except that a
197 residential and small commercial contractor engaged in the construction of single-family and
198 multifamily residences up to four units may perform the mechanical work and hire a licensed
199 plumber or electrician as an employee.
200 [(29)] (30) "Residential apprentice plumber" means a person licensed under this
201 chapter as a residential apprentice plumber who is learning the residential plumbing trade while
202 working on residential buildings under the approved supervision of a residential journeyman
203 plumber or a journeyman plumber.
204 [(30)] (31) "Residential building," as it relates to the license classification of residential
205 apprentice plumber and residential journeyman plumber, means a single or multiple family
206 dwelling of up to four units.
207 [(31)] (32) "Residential journeyman electrician" means a person licensed under this
208 chapter as a residential journeyman electrician having the qualifications, training, experience,
209 and knowledge to wire, install, and repair electrical apparatus and equipment for light, heat,
210 power, and other purposes on buildings using primarily nonmetallic sheath cable.
211 [(32)] (33) "Residential journeyman plumber" means a person licensed under this
212 chapter as a residential journeyman plumber having the qualifications, training, experience, and
213 knowledge to engage in the plumbing trade as limited to the plumbing of residential buildings.

214 [(33)] (34) "Residential master electrician" means a person licensed under this chapter
215 as a residential master electrician having the qualifications, training, experience, and
216 knowledge to properly plan, layout, and supervise the wiring, installation, and repair of
217 electrical apparatus and equipment for light, heat, power, and other purposes on residential
218 projects.
219 [(34)] (35) "Residential project," as it relates to an electrician or electrical contractor,
220 means buildings primarily wired with nonmetallic sheathed cable, in accordance with standard
221 rules and regulations governing this work, including the National Electrical Code, and in which
222 the voltage does not exceed 250 volts line to line and 125 volts to ground.
223 [(35)] (36) "Specialty contractor" means a person licensed under this chapter under a
224 specialty contractor classification established by rule, who is qualified by education, training,
225 experience, and knowledge to perform those construction trades and crafts requiring
226 specialized skill, the regulation of which are determined by the division to be in the best
227 interest of the public health, safety, and welfare. A specialty contractor may perform work in
228 crafts or trades other than those in which he is licensed if they are incidental to the performance
229 of his licensed craft or trade.
230 [(36)] (37) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
231 [(37)] (38) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-55-502
232 and as may be further defined by rule.
233 [(38)] (39) "Wages" means amounts due to an employee for labor or services whether
234 the amount is fixed or ascertained on a time, task, piece, commission, or other basis for
235 calculating the amount.
236 Section 2. Section 58-55-301 is amended to read:
237 58-55-301. License required -- License classifications.
238 (1) (a) Any person engaged in the construction trades licensed under this chapter, as a
239 contractor regulated under this chapter, as an alarm business or company, or as an alarm
240 company agent, shall become licensed under this chapter before engaging in that trade or
241 contracting activity in this state unless specifically exempted from licensure under Section
242 58-1-307 or 58-55-305 .
243 (b) The license issued under this chapter and the business license issued by the local
244 jurisdiction in which the licensee has its principal place of business shall be the only licenses

245 required for the licensee to engage in a trade licensed by this chapter, within the state.
246 (c) Neither the state nor any of its political subdivisions may require of a licensee any
247 additional business licenses, registrations, certifications, contributions, donations, or anything
248 else established for the purpose of qualifying a licensee under this chapter to do business in that
249 local jurisdiction, except for contract prequalification procedures required by state agencies, or
250 the payment of any fee for the license, registration, or certification established as a condition to
251 do business in that local jurisdiction.
252 (2) The division shall issue licenses under this chapter to qualified persons in the
253 following classifications:
254 (a) general engineering contractor;
255 (b) general building contractor;
256 (c) residential and small commercial contractor;
257 (d) specialty contractor;
258 (e) journeyman plumber;
259 (f) apprentice plumber;
260 (g) residential journeyman plumber;
261 (h) residential apprentice plumber;
262 (i) master electrician;
263 (j) residential master electrician;
264 (k) journeyman electrician;
265 (l) residential journeyman electrician;
266 (m) apprentice electrician;
267 (n) construction trades instructor:
268 (i) general engineering classification;
269 (ii) general building classification;
270 (iii) electrical classification;
271 (iv) plumbing classification; and
272 (v) mechanical classification;
273 (o) alarm company; [and]
274 (p) alarm company agent[.]; and
275 (q) crane operator.

276 (3) (a) An applicant may apply for a license in one or more classification or specialty
277 contractor subclassification.
278 (b) A license shall be granted in each classification or subclassification for which the
279 applicant qualifies.
280 (c) A separate application and fee must be submitted for each license classification or
281 subclassification.
282 Section 3. Section 58-55-302 is amended to read:
283 58-55-302. Qualifications for licensure.
284 (1) Each applicant for a license under this chapter shall:
285 (a) submit an application prescribed by the division;
286 (b) pay a fee as determined by the department under Section 63-38-3.2 ;
287 (c) (i) meet the examination requirements established by rule by the commission with
288 the concurrence of the director, except for the classifications of apprentice plumber, residential
289 apprentice plumber, and apprentice electrician for whom no examination is required; or
290 (ii) if required in Section 58-55-304 , the individual qualifier must pass the required
291 examination if the applicant is a business entity;
292 (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
293 (e) if an applicant for a contractor's license:
294 (i) produce satisfactory evidence of financial responsibility, except for a construction
295 trades instructor for whom evidence of financial responsibility is not required;
296 (ii) produce satisfactory evidence of knowledge and experience in the construction
297 industry and knowledge of the principles of the conduct of business as a contractor, reasonably
298 necessary for the protection of the public health, safety, and welfare; and
299 (iii) be a licensed master electrician if an applicant for an electrical contractor's license
300 or a licensed master residential electrician if an applicant for a residential electrical contractor's
301 license; or
302 (iv) be a journeyman plumber or residential journeyman plumber if an applicant for a
303 plumbing contractor's license; and
304 (f) if an applicant for a construction trades instructor license, satisfy any additional
305 requirements established by rule.
306 (2) After approval of an applicant for a contractor's license by the applicable board and

307 the division, the applicant shall file the following with the division before the division issues
308 the license:
309 (a) proof of workers' compensation insurance which covers employees of the applicant
310 in accordance with applicable Utah law;
311 (b) proof of public liability insurance in coverage amounts and form established by rule
312 except for a construction trades instructor for whom public liability insurance is not required;
313 and
314 (c) proof of registration as required by applicable law with the:
315 (i) Utah Department of Commerce;
316 (ii) Division of Corporations and Commercial Code;
317 (iii) Division of Workforce Information and Payment Services in the Department of
318 Workforce Services, for purposes of Title 35A, Chapter 4, Employment Security Act;
319 (iv) State Tax Commission; and
320 (v) Internal Revenue Service.
321 (3) In addition to the general requirements for each applicant in Subsection (1),
322 applicants shall comply with the following requirements to be licensed in the following
323 classifications:
324 (a) A journeyman plumber applicant shall produce satisfactory evidence of:
325 (i) successful completion of the equivalent of at least four years of full-time training
326 and instruction as a licensed apprentice plumber under supervision of a licensed journeyman
327 plumber and in accordance with a planned program of training approved by the division;
328 (ii) at least eight years of full-time experience approved by the division in collaboration
329 with the Plumbers Licensing Board; or
330 (iii) satisfactory evidence of meeting the qualifications determined by the board to be
331 equivalent to Subsection (3)(a)(i) or [(a)](ii).
332 (b) A residential journeyman plumber shall produce satisfactory evidence of:
333 (i) completion of the equivalent of at least three years of full-time training and
334 instruction as a licensed apprentice plumber under the supervision of a licensed residential
335 journeyman plumber or licensed journeyman plumber in accordance with a planned program of
336 training approved by the division;
337 (ii) completion of at least six years of full-time experience in a maintenance or repair

338 trade involving substantial plumbing work; or
339 (iii) meeting the qualifications determined by the board to be equivalent to Subsection
340 (3)(b)(i) or [(b)](ii).
341 (c) (i) A master electrician applicant shall produce satisfactory evidence that the
342 applicant:
343 (A) is a graduate electrical engineer of an accredited college or university approved by
344 the division and has one year of practical electrical experience as a licensed apprentice
345 electrician;
346 (B) is a graduate of an electrical trade school, having received an associate of applied
347 sciences degree following successful completion of a course of study approved by the division,
348 and has two years of practical experience as a licensed journeyman electrician;
349 (C) has four years of practical experience as a journeyman electrician; or
350 (D) meets the qualifications determined by the board to be equivalent to Subsection
351 (3)(c)(i)(A), (B), or (C).
352 (ii) (A) An individual holding a valid Utah license as a master electrician, based on at
353 least eight years of practical experience as a licensed apprentice under the supervision of a
354 licensed journeyman or master electrician, in effect immediately prior to May 3, 2004, is on
355 and after May 3, 2004, considered to hold a current license under this chapter and satisfies the
356 requirements of this Subsection (3)(c) for the purpose of renewal or reinstatement of that
357 license under Section 58-55-303 .
358 (B) An individual who has less than four years of practical experience as a licensed
359 apprentice under the supervision of a licensed journeyman or master electrician prior to May 3,
360 2004, shall complete the education requirements of Subsection (3)(c)(i)(A) or (B) to qualify for
361 licensing as a master electrician.
362 (C) An individual who has more than four but less than six years of practical
363 experience as a licensed apprentice under the supervision of a licensed journeyman or master
364 electrician prior to May 3, 2004, may satisfy the education requirements of Subsection
365 (3)(c)(i)(A) or (B) by successfully passing a competency placement test approved by the board
366 and administered at a Utah state institution of higher education.
367 (D) An individual who has more than six but less than eight years of practical
368 experience as a licensed apprentice under the supervision of a licensed journeyman or master

369 electrician prior to May 3, 2004, satisfies the education requirements of this Subsection (3)(c)
370 by completing the eight-year term of practical experience within a reasonable time frame
371 subsequent to May 3, 2004, as established by board rule in accordance with Title 63, Chapter
372 46a, Utah Administrative Rulemaking Act.
373 (d) A master residential electrician applicant shall produce satisfactory evidence that
374 the applicant:
375 (i) has at least two years of practical experience as a residential journeyman electrician;
376 or
377 (ii) meets the qualifications determined by the board to be equivalent to this practical
378 experience.
379 (e) (i) A journeyman electrician applicant shall produce satisfactory evidence that the
380 applicant:
381 (A) has successfully completed at least four years of full-time training and instruction
382 as a licensed apprentice electrician under the supervision of a master electrician or journeyman
383 electrician and in accordance with a planned training program approved by the division;
384 (B) has at least eight years of full-time experience approved by the division in
385 collaboration with the Electricians Licensing Board; or
386 (C) meets the qualifications determined by the board to be equivalent to Subsection
387 (3)(e)(i)(A) or (B).
388 (ii) An individual holding a valid Utah license as a journeyman electrician, based on at
389 least six years of full-time experience approved by the division in collaboration with the
390 Electricians Licensing Board in effect immediately prior to May 3, 2004, is on and after May 3,
391 2004, considered to hold a current license under this chapter and satisfies the requirements of
392 Subsection (3)(e)(i)(B) for the purpose of renewal or reinstatement of that license under
393 Section 58-55-303 .
394 (iii) An individual who has more than six but less than eight years of full-time
395 experience approved by the division in collaboration with the Electricians Licensing Board
396 prior to May 3, 2004, satisfies the requirements of Subsection (3)(e)(i) by completing the
397 eight-year term of practical experience within a reasonable time frame subsequent to May 3,
398 2004, as established by board rule in accordance with Title 63, Chapter 46a, Utah
399 Administrative Rulemaking Act.

400 (f) A residential journeyman electrician applicant shall produce satisfactory evidence
401 that the applicant:
402 (i) has successfully completed two years of training in an electrical training program
403 approved by the division;
404 (ii) has four years of practical experience in wiring, installing, and repairing electrical
405 apparatus and equipment for light, heat, and power under the supervision of a licensed master,
406 journeyman, residential master, or residential journeyman electrician; or
407 (iii) meets the qualifications determined by the division and applicable board to be
408 equivalent to Subsection (3)(f)(i) or (ii).
409 (g) The conduct of licensed apprentice electricians and their licensed supervisors shall
410 be in accordance with the following:
411 (i) A licensed apprentice electrician shall be under the immediate supervision of a
412 licensed master, journeyman, residential master, or residential journeyman electrician. An
413 apprentice in the fourth year of training may work without supervision for a period not to
414 exceed eight hours in any 24-hour period.
415 (ii) A licensed master, journeyman, residential master, or residential journeyman
416 electrician may have under immediate supervision on a residential project up to three licensed
417 apprentice electricians.
418 (iii) A licensed master or journeyman electrician may have under immediate
419 supervision on nonresidential projects only one licensed apprentice electrician.
420 (h) An alarm company applicant shall:
421 (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
422 the applicant who:
423 (A) demonstrates 6,000 hours of experience in the alarm company business;
424 (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
425 company business or in a construction business; and
426 (C) passes an examination component established by rule by the commission with the
427 concurrence of the director;
428 (ii) if a corporation, provide:
429 (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
430 of all corporate officers, directors, and those responsible management personnel employed

431 within the state or having direct responsibility for managing operations of the applicant within
432 the state; and
433 (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
434 of all shareholders owning 5% or more of the outstanding shares of the corporation, except this
435 shall not be required if the stock is publicly listed and traded;
436 (iii) if a limited liability company, provide:
437 (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
438 of all company officers, and those responsible management personnel employed within the
439 state or having direct responsibility for managing operations of the applicant within the state;
440 and
441 (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
442 of all individuals owning 5% or more of the equity of the company;
443 (iv) if a partnership, the names, addresses, dates of birth, Social Security numbers, and
444 fingerprint cards of all general partners, and those responsible management personnel
445 employed within the state or having direct responsibility for managing operations of the
446 applicant within the state;
447 (v) if a proprietorship, the names, addresses, dates of birth, Social Security numbers,
448 and fingerprint cards of the proprietor, and those responsible management personnel employed
449 within the state or having direct responsibility for managing operations of the applicant within
450 the state;
451 (vi) be of good moral character in that officers, directors, shareholders described in
452 Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel have not
453 been convicted of a felony, a misdemeanor involving moral turpitude, or any other crime that
454 when considered with the duties and responsibilities of an alarm company is considered by the
455 board to indicate that the best interests of the public are served by granting the applicant a
456 license;
457 (vii) document that none of the applicant's officers, directors, shareholders described in
458 Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel have
459 been declared by any court of competent jurisdiction incompetent by reason of mental defect or
460 disease and not been restored;
461 (viii) document that none of the applicant's officers, directors, shareholders described

462 in Subsection (3)(h)(ii)(B), partners, proprietors, and responsible management personnel are
463 currently suffering from habitual drunkenness or from drug addiction or dependence;
464 (ix) file and maintain with the division evidence of:
465 (A) comprehensive general liability insurance in form and in amounts to be established
466 by rule by the commission with the concurrence of the director;
467 (B) workers' compensation insurance that covers employees of the applicant in
468 accordance with applicable Utah law; and
469 (C) registration as is required by applicable law with the:
470 (I) Division of Corporations and Commercial Code;
471 (II) Division of Workforce Information and Payment Services in the Department of
472 Workforce Services, for purposes of Title 35A, Chapter 4, Employment Security Act;
473 (III) State Tax Commission; and
474 (IV) Internal Revenue Service; and
475 (x) meet with the division and board.
476 (i) Each applicant for licensure as an alarm company agent shall:
477 (i) submit an application in a form prescribed by the division accompanied by
478 fingerprint cards;
479 (ii) pay a fee determined by the department under Section 63-38-3.2 ;
480 (iii) be of good moral character in that the applicant has not been convicted of a felony,
481 a misdemeanor involving moral turpitude, or any other crime that when considered with the
482 duties and responsibilities of an alarm company agent is considered by the board to indicate
483 that the best interests of the public are served by granting the applicant a license;
484 (iv) not have been declared by any court of competent jurisdiction incompetent by
485 reason of mental defect or disease and not been restored;
486 (v) not be currently suffering from habitual drunkenness or from drug addiction or
487 dependence; and
488 (vi) meet with the division and board if requested by the division or the board.
489 (j) (i) Each applicant for licensing as a crane operator shall:
490 (A) be at least 18 years old;
491 (B) submit an application on a form prescribed by the division;
492 (C) pay a fee as determined by the department under Section 63-38-3.2 ; and

493 (D) (I) provide documentation of certification as a crane operator; or
494 (II) satisfy equivalent requirements that demonstrate the applicant's ability to safely
495 operate a crane as established by division rule made in accordance with Title 63, Chapter 46a,
496 Utah Administrative Rulemaking Act.
497 (ii) For purposes of this Subsection (3)(j), "certification as a crane operator" means
498 certification from the National Commission for the Certification of Crane Operators or any
499 other organization determined by the division to offer an equivalent testing and certification
500 program that meets the requirements of the American Society of Mechanical Engineers ASME
501 B 30.5 and the accreditation requirements of the National Commission for Certifying Agencies.
502 (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
503 division may make rules establishing when Federal Bureau of Investigation records shall be
504 checked for applicants as an alarm company or alarm company agent.
505 (5) To determine if an applicant meets the qualifications of Subsections (3)(h)(vi) and
506 (3)(i)(iii), the division shall provide an appropriate number of copies of fingerprint cards to the
507 Department of Public Safety with the division's request to:
508 (a) conduct a search of records of the Department of Public Safety for criminal history
509 information relating to each applicant for licensure as an alarm company or alarm company
510 agent and each applicant's officers, directors, shareholders described in Subsection
511 (3)(h)(ii)(B), partners, proprietors, and responsible management personnel; and
512 (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
513 requiring a check of records of the F.B.I. for criminal history information under this section.
514 (6) The Department of Public Safety shall send to the division:
515 (a) a written record of criminal history, or certification of no criminal history record, as
516 contained in the records of the Department of Public Safety in a timely manner after receipt of
517 a fingerprint card from the division and a request for review of Department of Public Safety
518 records; and
519 (b) the results of the F.B.I. review concerning an applicant in a timely manner after
520 receipt of information from the F.B.I.
521 (7) (a) The division shall charge each applicant for licensure as an alarm company or
522 alarm company agent a fee, in accordance with Section 63-38-3.2 , equal to the cost of
523 performing the records reviews under this section.

524 (b) The division shall pay the Department of Public Safety the costs of all records
525 reviews, and the Department of Public Safety shall pay the F.B.I. the costs of records reviews
526 under this section.
527 (8) Information obtained by the division from the reviews of criminal history records of
528 the Department of Public Safety and the F.B.I. shall be used or disseminated by the division
529 only for the purpose of determining if an applicant for licensure as an alarm company or alarm
530 company agent is qualified for licensure.
531 (9) (a) An application for licensure under this chapter shall be denied if:
532 (i) the applicant has had a previous license, which was issued under this chapter,
533 suspended or revoked within one year prior to the date of the applicant's application;
534 (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
535 (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
536 applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
537 status, performing similar functions, or directly or indirectly controlling the applicant has
538 served in any similar capacity with any person or entity which has had a previous license,
539 which was issued under this chapter, suspended or revoked within one year prior to the date of
540 the applicant's application; or
541 (iii) (A) the applicant is an individual or sole proprietorship; and
542 (B) any owner or agent acting as a qualifier has served in any capacity listed in
543 Subsection (9)(a)(ii)(B) in any entity which has had a previous license, which was issued under
544 this chapter, suspended or revoked within one year prior to the date of the applicant's
545 application.
546 (b) An application for licensure under this chapter shall be reviewed by the appropriate
547 licensing board prior to approval if:
548 (i) the applicant has had a previous license, which was issued under this chapter,
549 suspended or revoked more than one year prior to the date of the applicant's application;
550 (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
551 (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
552 applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
553 status, performing similar functions, or directly or indirectly controlling the applicant has
554 served in any similar capacity with any person or entity which has had a previous license,

555 which was issued under this chapter, suspended or revoked more than one year prior to the date
556 of the applicant's application; or
557 (iii) (A) the applicant is an individual or sole proprietorship; and
558 (B) any owner or agent acting as a qualifier has served in any capacity listed in
559 Subsection (9)(b)(ii)(B) in any entity which has had a previous license, which was issued under
560 this chapter, suspended or revoked more than one year prior to the date of the applicant's
561 application.
562 Section 4. Section 58-55-303 is amended to read:
563 58-55-303. Term of license -- Expiration -- Renewal.
564 (1) (a) Each license issued under this chapter shall be issued in accordance with a
565 two-year renewal cycle established by rule.
566 (b) The division may by rule extend or shorten a renewal period by as much as one year
567 to stagger the renewal cycle it administers.
568 (2) At the time of renewal, the licensee shall show satisfactory evidence of continuing
569 financial responsibility as required under Section 58-55-306 .
570 (3) Each license automatically expires on the expiration date shown on the license
571 unless the licensee renews the license in accordance with Section 58-1-308 .
572 (4) The requirements of Subsection 58-55-302 (9) shall also apply to applicants seeking
573 to renew or reinstate a license.
574 (5) In addition to any other requirements imposed by law, if a license has been
575 suspended or revoked for any reason, the applicant must pay in full all fines imposed by the
576 division, resolve any outstanding citations or disciplinary actions with the division, satisfy any
577 Section 58-55-503 judgment and sentence or nontrial resolution, complete a new financial
578 responsibility review as required under Section 58-55-306 , using only titled assets, and pay in
579 full any reimbursement amount as provided in Title 38, Chapter 11, Residence Lien Restriction
580 and Lien Recovery Fund Act.
581 (6) An individual seeking renewal of a crane operator's license issued under this
582 chapter shall provide documentation of the individual's current certification as a crane operator
583 by an entity referred to in Subsection 58-55-302 (3)(j)(ii).
584 Section 5. Section 58-55-501 (Effective 07/01/05) is amended to read:
585 58-55-501 (Effective 07/01/05). Unlawful conduct.

586 Unlawful conduct includes:
587 (1) engaging in a construction trade, acting as a contractor, an alarm business or
588 company, or an alarm company agent, or representing oneself to be engaged in a construction
589 trade or to be acting as a contractor in a construction trade requiring licensure, or operating a
590 crane that requires a licensed crane operator unless the person doing any of these is
591 appropriately licensed or exempted from licensure under this chapter;
592 (2) acting in a construction trade, as an alarm business or company, [or] as an alarm
593 company agent, or as a crane operator beyond the scope of the license held;
594 (3) hiring or employing in any manner an unlicensed person, other than an employee
595 for wages who is not required to be licensed under this chapter, to engage in a construction
596 trade for which licensure is required or to act as a contractor or subcontractor in a construction
597 trade requiring licensure;
598 (4) applying for or obtaining a building permit either for oneself or another when not
599 licensed or exempted from licensure as a contractor under this chapter;
600 (5) issuing a building permit to any person for whom there is no evidence of a current
601 license or exemption from licensure as a contractor under this chapter;
602 (6) applying for or obtaining a building permit for the benefit of or on behalf of any
603 other person who is required to be licensed under this chapter but who is not licensed or is
604 otherwise not entitled to obtain or receive the benefit of the building permit;
605 (7) failing to obtain a building permit when required by law or rule;
606 (8) submitting a bid for any work for which a license is required under this chapter by a
607 person not licensed or exempted from licensure as a contractor under this chapter;
608 (9) willfully or deliberately misrepresenting or omitting a material fact in connection
609 with an application to obtain or renew a license under this chapter;
610 (10) allowing one's license to be used by another except as provided by statute or rule;
611 (11) doing business under a name other than the name appearing on the license, except
612 as permitted by statute or rule;
613 (12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
614 journeyman plumber, residential journeyman plumber, journeyman electrician, master
615 electrician, or residential electrician, failing to directly supervise an apprentice under one's
616 supervision or exceeding the number of apprentices one is allowed to have under his

617 supervision;
618 (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
619 funds in payment for a specific project from an owner or any other person, which funds are to
620 pay for work performed or materials and services furnished for that specific project, and after
621 receiving the funds to exercise unauthorized control over the funds by failing to pay the full
622 amounts due and payable to persons who performed work or furnished materials or services
623 within a reasonable period of time;
624 (14) employing as an alarm company an unlicensed individual as an alarm company
625 agent, except as permitted under the exemption from licensure provisions under Section
626 58-1-307 ;
627 (15) if licensed as an alarm company or alarm company agent, filing with the division
628 fingerprint cards for an applicant which are not those of the applicant, or are in any other way
629 false or fraudulent and intended to mislead the division in its consideration of the applicant for
630 licensure;
631 (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
632 (a) the building or construction laws of this state or any political subdivision;
633 (b) the safety and labor laws applicable to a project;
634 (c) any provision of the health laws applicable to a project;
635 (d) the workers' compensation insurance laws of the state applicable to a project;
636 (e) the laws governing withholdings for employee state and federal income taxes,
637 unemployment taxes, FICA, or other required withholdings; or
638 (f) reporting, notification, and filing laws of this state or the federal government;
639 (17) aiding or abetting any person in evading the provisions of this chapter or rules
640 established under the authority of the division to govern this chapter;
641 (18) engaging in the construction trade or as a contractor for the construction of
642 residences of up to two units when not currently registered or exempt from registration as a
643 qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
644 Fund Act;
645 (19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
646 written contract the notification required in Section 38-11-108 ;
647 (20) wrongfully filing a mechanics' lien in violation of Section 38-1-25 ; [or]

648 (21) if licensed as a contractor, not completing a three-hour core education class and an
649 additional three hours of professional education approved by the division and the Construction
650 Services Commission within each two-year renewal cycle, beginning with the two-year renewal
651 cycle that starts July 1, 2005, and ends June 30, 2007 unless an exemption has been granted to
652 the licensee by the Construction Services Commission, with the concurrence of the division,
653 except that this Subsection (21) is repealed effective July 1, 2010 and its implementation is
654 subject to the division receiving adequate funding for its implementation through a legislative
655 appropriation.
656 Section 6. Effective date.
657 This bill takes effect on July 1, 2005.




Legislative Review Note
as of 11-27-04 2:27 PM

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

Office of Legislative Research and General Counsel