H.B. 325

1

REGULATION OF CONSTRUCTION INDUSTRY
2 2006 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Larry B. Wiley
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies Title 58, Chapter 55, Utah Construction Trades Licensing Act.
10 Highlighted Provisions:
11 This bill:
12 . defines "building inspector";
13 . clarifies the owner-builder exemption from licensing;
14 . allows a building inspector to issue a citation for a violation of Title 58, Chapter 55,
15 Utah Construction Trades Licensing Act;
16 . provides that a fine based on a citation issued by a building inspector is generally
17 collected by the entity for which the building inspector performs an inspection;
18 . requires a political subdivision to notify the Division of Occupational and
19 Professional Licensing of the outcome of any citation issued by the political
20 subdivision; and
21 . makes technical changes.
22 Monies Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:

28 58-55-102, as last amended by Chapter 206, Laws of Utah 2005
29 58-55-305, as last amended by Chapter 54, Laws of Utah 2005
30 58-55-503, as last amended by Chapter 45, Laws of Utah 2004
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 58-55-102 is amended to read:
34 58-55-102. Definitions.
35 In addition to the definitions in Section 58-1-102 , as used in this chapter:
36 (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
37 maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
38 except as provided in Subsection (1)(b).
39 (b) "Alarm business or company" does not include:
40 (i) a person engaged in the manufacture and sale of alarm systems when:
41 (A) that person is not engaged in the installation, maintenance, alteration, repair,
42 replacement, servicing, or monitoring of alarm systems[,]; and
43 (B) the manufacture or sale occurs only at a place of business established by the person
44 engaged in the manufacture or sale and does not involve site visits at the place or intended
45 place of installation of an alarm system; or
46 (ii) an owner of an alarm system, or an employee of the owner of an alarm system who
47 is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
48 of the alarm system owned by that owner.
49 (2) "Alarm company agent" means any individual employed within this state by a
50 person engaged in the alarm business.
51 (3) "Alarm system" means equipment and devices assembled for the purpose of:
52 (a) detecting and signaling unauthorized intrusion or entry into or onto certain
53 premises; or
54 (b) signaling a robbery or attempted robbery on protected premises.
55 (4) "Apprentice electrician" means a person licensed under this chapter as an
56 apprentice electrician who is learning the electrical trade under approved supervision of a
57 master electrician, residential master electrician, a journeyman electrician, or a residential
58 journeyman electrician.

59 (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
60 plumber who is learning the plumbing trade under approved supervision of a journeyman
61 plumber.
62 (6) "Approved supervision" means the immediate supervision of apprentices by
63 qualified licensed electricians or plumbers as a part of a planned program of training.
64 (7) "Board" means the Electrician Licensing Board, Alarm System Security and
65 Licensing Board, or Plumbers Licensing Board created in Section 58-55-201 .
66 (8) "Building inspector" means a person licensed by the division under Section
67 58-56-9 .
68 [(8)] (9) "Combustion system" means an assembly consisting of:
69 (a) piping and components with a means for conveying, either continuously or
70 intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
71 appliance;
72 (b) the electric control and combustion air supply and venting systems; and
73 (c) components intended to achieve control of quantity, flow, and pressure.
74 [(9)] (10) "Commission" means the Construction Services Commission created under
75 Section 58-55-103 .
76 [(10)] (11) "Construction trade" means any trade or occupation involving:
77 (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition
78 to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
79 or other project, development, or improvement to other than personal property; and
80 (ii) constructing, remodeling, or repairing a manufactured home or mobile home as
81 defined in Section 58-56-3 ; or
82 (b) installation or repair of a residential or commercial natural gas appliance or
83 combustion system.
84 [(11)] (12) "Construction trades instructor" means a person licensed under this chapter
85 to teach one or more construction trades in both a classroom and project environment, where a
86 project is intended for sale to or use by the public and is completed under the direction of the
87 instructor, who has no economic interest in the project.
88 [(12)] (13) (a) "Contractor" means any person who for compensation other than wages
89 as an employee undertakes any work in the construction, plumbing, or electrical trade for

90 which licensure is required under this chapter and includes:
91 (i) a person who builds any structure on his own property for the purpose of sale or
92 who builds any structure intended for public use on his own property;
93 (ii) any person who represents himself to be a contractor by advertising or any other
94 means;
95 (iii) any person engaged as a maintenance person, other than an employee, who
96 regularly engages in activities set forth under the definition of "construction trade";
97 (iv) any person engaged in any construction trade for which licensure is required under
98 this chapter; or
99 (v) a construction manager who performs management and counseling services on a
100 construction project for a fee.
101 (b) "Contractor" does not include an alarm company or alarm company agent.
102 [(13)] (14) (a) "Electrical trade" means the performance of any electrical work involved
103 in the installation, construction, alteration, change, repair, removal, or maintenance of facilities,
104 buildings, or appendages or appurtenances.
105 (b) "Electrical trade" does not include:
106 (i) transporting or handling electrical materials;
107 (ii) preparing clearance for raceways for wiring; or
108 (iii) work commonly done by unskilled labor on any installations under the exclusive
109 control of electrical utilities.
110 (c) For purposes of Subsection [(13)] (14)(b):
111 (i) no more than one unlicensed person may be so employed unless more than five
112 licensed electricians are employed by the shop; and
113 (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio
114 permitted by this Subsection [(13)] (14)(c).
115 [(14)] (15) "Employee" means an individual as defined by the division by rule giving
116 consideration to the definition adopted by the Internal Revenue Service and the Department of
117 Workforce Services.
118 [(15)] (16) "Engage in a construction trade" means to:
119 (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
120 in a construction trade; or

121 (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
122 to believe one is or will act as a contractor.
123 [(16)] (17) (a) "Financial responsibility" means a demonstration of a current and
124 expected future condition of financial solvency evidencing a reasonable expectation to the
125 division and the board that an applicant or licensee can successfully engage in business as a
126 contractor without jeopardy to the public health, safety, and welfare.
127 (b) Financial responsibility may be determined by an evaluation of the total history
128 concerning the licensee or applicant including past, present, and expected condition and record
129 of financial solvency and business conduct.
130 [(17)] (18) "Gas appliance" means any device that uses natural gas to produce light,
131 heat, power, steam, hot water, refrigeration, or air conditioning.
132 [(18)] (19) (a) "General building contractor" means a person licensed under this
133 chapter as a general building contractor qualified by education, training, experience, and
134 knowledge to perform or superintend construction of structures for the support, shelter, and
135 enclosure of persons, animals, chattels, or movable property of any kind or any of the
136 components of that construction except plumbing, electrical work, mechanical work, and
137 manufactured housing installation, for which the general building contractor shall employ the
138 services of a contractor licensed in the particular specialty, except that a general building
139 contractor engaged in the construction of single-family and multifamily residences up to four
140 units may perform the mechanical work and hire a licensed plumber or electrician as an
141 employee.
142 (b) The division may by rule exclude general building contractors from engaging in the
143 performance of other construction specialties in which there is represented a substantial risk to
144 the public health, safety, and welfare, and for which a license is required unless that general
145 building contractor holds a valid license in that specialty classification.
146 [(19)] (20) (a) "General engineering contractor" means a person licensed under this
147 chapter as a general engineering contractor qualified by education, training, experience, and
148 knowledge to perform construction of fixed works in any of the following:
149 (i) irrigation[,];
150 (ii) drainage[,];
151 (iii) water[,];

152 (iv) power[,];
153 (v) water supply[,];
154 (vi) flood control[,];
155 (vii) inland waterways[,];
156 (viii) harbors[,];
157 (ix) railroads[,];
158 (x) highways[,];
159 (xi) tunnels[,];
160 (xii) airports and runways[,];
161 (xiii) sewers and bridges[,];
162 (xiv) refineries[,];
163 (xv) pipelines[,];
164 (xvi) chemical and industrial plants requiring specialized engineering knowledge and
165 skill[,];
166 (xvii) piers[, and];
167 (xviii) foundations[,]; or
168 (xix) any of the components of [those] the works described in this Subsection (20).
169 (b) A general engineering contractor may not perform construction of structures built
170 primarily for the support, shelter, and enclosure of persons, animals, and chattels.
171 [(20)] (21) "Immediate supervision" means reasonable direction, oversight, inspection,
172 and evaluation of the work of a person, in or out of the immediate presence of the supervising
173 person, so as to ensure that the end result complies with applicable standards.
174 [(21)] (22) "Individual" means a natural person.
175 [(22)] (23) "Journeyman electrician" means a person licensed under this chapter as a
176 journeyman electrician having the qualifications, training, experience, and knowledge to wire,
177 install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
178 [(23)] (24) "Journeyman plumber" means a person licensed under this chapter as a
179 journeyman plumber having the qualifications, training, experience, and technical knowledge
180 to engage in the plumbing trade.
181 [(24)] (25) "Master electrician" means a person licensed under this chapter as a master
182 electrician having the qualifications, training, experience, and knowledge to properly plan,

183 layout, and supervise the wiring, installation, and repair of electrical apparatus and equipment
184 for light, heat, power, and other purposes.
185 [(25)] (26) "Person" means a natural person, sole proprietorship, joint venture,
186 corporation, limited liability company, association, or organization of any type.
187 [(26)] (27) (a) "Plumbing trade" means the performance of any mechanical work
188 pertaining to the installation, alteration, change, repair, removal, maintenance, or use in
189 buildings, or within three feet beyond the outside walls of buildings of pipes, fixtures, and
190 fittings for:
191 (i) delivery of the water supply;
192 (ii) discharge of liquid and water carried waste; or
193 (iii) the building drainage system within the walls of the building.
194 (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
195 fixtures and fixture traps, soil, waste and vent pipes, and the building drain and roof drains
196 together with their devices, appurtenances, and connections where installed within the outside
197 walls of the building.
198 [(27)] (28) (a) "Ratio of apprentices" means, for the purpose of determining
199 compliance with the requirements for planned programs of training and electrician apprentice
200 licensing applications, the shop ratio of apprentice electricians to journeyman or master
201 electricians shall be one journeyman or master electrician to one apprentice on industrial and
202 commercial work, and one journeyman or master electrician to three apprentices on residential
203 work.
204 (b) On-the-job training shall be under circumstances in which the ratio of apprentices
205 to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
206 three apprentices to one supervisor on residential projects.
207 [(28)] (29) "Residential and small commercial contractor" means a person licensed
208 under this chapter as a residential and small commercial contractor qualified by education,
209 training, experience, and knowledge to perform or superintend the construction of
210 single-family residences, multifamily residences up to four units, and commercial construction
211 of not more than three stories above ground and not more than 20,000 square feet, or any of the
212 components of that construction except plumbing, electrical work, mechanical work, and
213 manufactured housing installation, for which the residential and small commercial contractor

214 shall employ the services of a contractor licensed in the particular specialty, except that a
215 residential and small commercial contractor engaged in the construction of single-family and
216 multifamily residences up to four units may perform the mechanical work and hire a licensed
217 plumber or electrician as an employee.
218 [(29)] (30) "Residential apprentice plumber" means a person licensed under this
219 chapter as a residential apprentice plumber who is learning the residential plumbing trade while
220 working on residential buildings under the approved supervision of a residential journeyman
221 plumber or a journeyman plumber.
222 [(30)] (31) "Residential building," as it relates to the license classification of residential
223 apprentice plumber and residential journeyman plumber, means a single or multiple family
224 dwelling of up to four units.
225 [(31)] (32) "Residential journeyman electrician" means a person licensed under this
226 chapter as a residential journeyman electrician having the qualifications, training, experience,
227 and knowledge to wire, install, and repair electrical apparatus and equipment for light, heat,
228 power, and other purposes on buildings using primarily nonmetallic sheath cable.
229 [(32)] (33) "Residential journeyman plumber" means a person licensed under this
230 chapter as a residential journeyman plumber having the qualifications, training, experience, and
231 knowledge to engage in the plumbing trade as limited to the plumbing of residential buildings.
232 [(33)] (34) "Residential master electrician" means a person licensed under this chapter
233 as a residential master electrician having the qualifications, training, experience, and
234 knowledge to properly plan, layout, and supervise the wiring, installation, and repair of
235 electrical apparatus and equipment for light, heat, power, and other purposes on residential
236 projects.
237 [(34)] (35) "Residential project," as it relates to an electrician or electrical contractor,
238 means buildings primarily wired with nonmetallic sheathed cable, in accordance with standard
239 rules and regulations governing this work, including the National Electrical Code, and in which
240 the voltage does not exceed 250 volts line to line and 125 volts to ground.
241 [(35)] (36) "Specialty contractor" means a person licensed under this chapter under a
242 specialty contractor classification established by rule, who is qualified by education, training,
243 experience, and knowledge to perform those construction trades and crafts requiring
244 specialized skill, the regulation of which are determined by the division to be in the best

245 interest of the public health, safety, and welfare. A specialty contractor may perform work in
246 crafts or trades other than those in which [he] the speciality contractor is licensed if they are
247 incidental to the performance of [his] the specialty contractor's licensed craft or trade.
248 [(36)] (37) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
249 [(37)] (38) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-55-502
250 and as may be further defined by rule.
251 [(38)] (39) "Wages" means amounts due to an employee for labor or services whether
252 the amount is fixed or ascertained on a time, task, piece, commission, or other basis for
253 calculating the amount.
254 Section 2. Section 58-55-305 is amended to read:
255 58-55-305. Exemptions from licensure.
256 (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
257 persons may engage in acts or practices included within the practice of construction trades,
258 subject to the stated circumstances and limitations, without being licensed under this chapter:
259 (a) an authorized representative of the United States government or an authorized
260 employee of the state or any of its political subdivisions when working on construction work of
261 the state or the subdivision, and when acting within the terms of the person's trust, office, or
262 employment;
263 (b) a person engaged in construction or operation incidental to the construction and
264 repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
265 districts, and drainage districts or construction and repair relating to farming, dairying,
266 agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
267 excavations, well drilling, as defined in Subsection 73-3-24 (3), hauling to and from
268 construction sites, and lumbering;
269 (c) public utilities operating under the rules of the Public Service Commission on
270 construction work incidental to their own business;
271 (d) [sole owners] a natural person who is the sole owner of property engaged in
272 building:
273 (i) no more than one residential structure per year and no more than three residential
274 structures per five years on [their] the person's property for [their] the person's own
275 noncommercial, nonpublic use; except, a person other than the property owner or individuals

276 described in Subsection (1)(e), who engages in building the structure must be licensed under
277 this chapter if the person is otherwise required to be licensed under this chapter; or
278 (ii) structures on their property for their own noncommercial, nonpublic use [which]
279 that are incidental to a residential structure on the property, including sheds, carports, or
280 detached garages;
281 (e) (i) a person engaged in construction or renovation of a residential building for
282 noncommercial, nonpublic use if that person:
283 (A) works without compensation other than token compensation that is not considered
284 salary or wages; and
285 (B) works under the direction of the property owner who engages in building the
286 structure;
287 (ii) for purposes of this Subsection (1)(e), "token compensation" means compensation
288 paid by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
289 exempted from licensure under this Subsection (1)(e), that is:
290 (A) minimal in value when compared with the fair market value of the services
291 provided by the person;
292 (B) not related to the fair market value of the services provided by the person; and
293 (C) is incidental to providing of services by the person including paying for or
294 providing meals or refreshment while services are being provided, or paying reasonable
295 transportation costs incurred by the person in travel to the site of construction;
296 (f) a person engaged in the sale or merchandising of personal property that by its design
297 or manufacture may be attached, installed, or otherwise affixed to real property who has
298 contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
299 attach that property;
300 (g) a contractor submitting a bid on a federal aid highway project, if, before
301 undertaking construction under that bid, the contractor is licensed under this chapter;
302 (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
303 improvement of a building with a contracted or agreed value of less than $1,000, including
304 both labor and materials, and including all changes or additions to the contracted or agreed
305 upon work;
306 (ii) notwithstanding Subsection (1)(h)(i):

307 (A) work in the plumbing and electrical trades must be performed by a licensed
308 electrician or plumber except as otherwise provided in this section;
309 (B) installation, repair, or replacement of a residential or commercial gas appliance or a
310 combustion system must be performed by a person who has received certification under
311 Subsection 58-55-308 (2) except as otherwise provided in Subsection 58-55-308 (2)(d) or
312 58-55-308 (3); and
313 (C) installation, repair, or replacement of water-based fire protection systems must be
314 performed by a licensed fire suppression systems contractor or a licensed journeyman plumber;
315 (i) a person practicing a specialty contractor classification or construction trade which
316 is not classified by rule by the director as significantly impacting the public's health, safety, and
317 welfare;
318 (j) owners and lessees of property and persons regularly employed for wages by owners
319 or lessees of property or their agents for the purpose of maintaining the property, are exempt
320 from this chapter when doing work upon the property;
321 (k) (i) a person engaged in minor plumbing work incidental to the replacement or
322 repair of a fixture or an appliance in a residential or small commercial building, or structure
323 used for agricultural use, as defined in Section 58-56-4 , provided that no modification is made
324 to:
325 (A) existing culinary water, soil, waste, or vent piping; or
326 (B) a gas appliance or combustion system; and
327 (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
328 an appliance is not included in the exemption provided under Subsection (1)(k)(i);
329 (l) a person who ordinarily would be subject to the plumber licensure requirements
330 under this chapter when installing or repairing a water conditioner or other water treatment
331 apparatus if the conditioner or apparatus:
332 (i) meets the appropriate state construction codes or local plumbing standards; and
333 (ii) is installed or repaired under the direction of a person authorized to do the work
334 under an appropriate specialty contractor license;
335 (m) a person who ordinarily would be subject to the electrician licensure requirements
336 under this chapter when employed by or under contract with:
337 (i) railroad corporations, telephone corporations or their corporate affiliates, elevator

338 contractors or constructors, or street railway systems; or
339 (ii) public service corporations, rural electrification associations, or municipal utilities
340 who generate, distribute, or sell electrical energy for light, heat, or power;
341 (n) a person involved in minor electrical work incidental to a mechanical or service
342 installation;
343 (o) a student participating in construction trade education and training programs
344 approved by the commission with the concurrence of the director under the condition that:
345 (i) all work intended as a part of a finished product on which there would normally be
346 an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
347 building inspector; and
348 (ii) a licensed contractor obtains the necessary building permits; and
349 (p) a delivery person when replacing any of the following existing equipment with a
350 new gas appliance, provided there is an existing gas shutoff valve at the appliance:
351 (i) gas range;
352 (ii) gas dryer;
353 (iii) outdoor gas barbeque; or
354 (iv) outdoor gas patio heater.
355 (2) (a) A compliance agency as defined in Subsection 58-56-3 (4) that issues a building
356 permit to any person requesting a permit as a sole owner of property referred to in Subsection
357 (1)(d) shall notify the division, in writing or through electronic transmission, of the issuance of
358 the permit.
359 (b) The division shall evaluate the effectiveness of the notification requirement under
360 Subsection (2)(a) and report its findings, including any recommendations for modification to or
361 termination of the requirement, to the Legislature's Business and Labor Interim Committee
362 prior to the 2008 General Session.
363 Section 3. Section 58-55-503 is amended to read:
364 58-55-503. Penalty for unlawful conduct -- Citations.
365 (1) (a) Any person who violates Subsection 58-55-308 (2) or Subsection 58-55-501 (1),
366 (2), (3), (4), (5), (6), (7), (9), (10), (12), (14), or (15), or who fails to comply with a citation
367 issued under this section after it is final, is guilty of a class A misdemeanor.
368 (b) Any person who violates the provisions of Subsection 58-55-501 (8) may not be

369 awarded and may not accept a contract for the performance of the work.
370 (2) Any person who violates [the provisions of] Subsection 58-55-501 (13) is guilty of
371 an infraction unless the violator did so with the intent to deprive the person to whom money is
372 to be paid of the money received, in which case the violator is guilty of theft, as classified in
373 Section 76-6-412 .
374 (3) Grounds for immediate suspension of the licensee's license by the division and the
375 commission include:
376 (a) the issuance of a citation for violation of Subsection 58-55-308 (2) or Section
377 58-55-501 ; or
378 (b) the failure by a licensee to make application to, report to, or notify the division with
379 respect to any matter for which application, notification, or reporting is required under this
380 chapter or rules adopted under this chapter, including:
381 (i) applying to the division for a new license to engage in a new specialty classification
382 or to do business under a new form of organization or business structure[,];
383 (ii) filing with the division current financial statements[,]; or
384 (iii) notifying the division concerning loss of insurance coverage, or change in
385 qualifier.
386 (4) (a) If upon inspection or investigation, the division or building inspector concludes
387 that a person has violated [the provisions of] Subsection 58-55-308 (2) or Subsections
388 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19), and (21) or any rule or order issued with
389 respect to these subsections, and that disciplinary action is appropriate[,]:
390 (i) the director or the director's designee from within the division shall:
391 (A) promptly issue a citation to the person according to this chapter and any pertinent
392 rules[,];
393 (B) attempt to negotiate a stipulated settlement[,]; or
394 (C) notify the person to appear before an adjudicative proceeding conducted under
395 Title 63, Chapter 46b, Administrative Procedures Act[.]; or
396 (ii) the building inspector may promptly issue a citation to the person according to this
397 chapter and any pertinent rules.
398 [(i)] (b) Any person who [is in violation of the provisions of] violates Subsection
399 58-55-308 (2) or Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19), or (21) as

400 evidenced by an uncontested citation, a stipulated settlement, or by a finding of violation in an
401 adjudicative proceeding[,]:
402 (i) may be assessed a fine pursuant to this Subsection (4); and
403 (ii) may, in addition to or in lieu of the fine, be ordered to cease and desist from
404 violating Subsection 58-55-308 (2) or Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14),
405 (19), or (21).
406 [(ii)] (c) Except for a cease and desist order, the licensure sanctions cited in Section
407 58-55-401 may not be assessed through a citation.
408 [(iii) (A)] (d) (i) A person who receives a citation or is fined for violating Subsection
409 58-55-501 (21) may also be issued a cease and desist order from engaging in work to be
410 performed by a contractor licensed under this chapter unless the person meets the continuing
411 education requirement within 30 days after receipt of the citation or fine.
412 [(B)] (ii) The order, if issued, shall be removed upon the person's completion of the
413 continuing education requirement.
414 [(C)] (iii) This Subsection (4)[(a)(iii)](d) is repealed effective July 1, 2010.
415 (e) (i) Unless otherwise agreed upon by the division and political subdivision, a
416 citation issued by the division or political subdivision shall be adjudicated by the entity that
417 issued the citation.
418 (ii) If a political subdivision issues a citation, the political subdivision shall notify the
419 division of the outcome as soon as practicable after the issuance of the citation, unless the
420 citation is transferred to the division under Subsection (4)(e)(i).
421 [(b)] (f) Each citation shall:
422 (i) be in writing [and];
423 (ii) describe with particularity the nature of the violation, including a reference to the
424 provision of the chapter, rule, or order alleged to have been violated[. The citation shall];
425 (iii) clearly state that the recipient must notify the division or political subdivision in
426 writing within 20 calendar days of service of the citation if the recipient wishes to contest the
427 citation at a hearing conducted under Title 63, Chapter 46b, Administrative Procedures Act[.
428 The citation shall]; and
429 (iv) clearly explain the consequences of failure to timely contest the citation or to make
430 payment of any fines assessed by the citation within the time specified in the citation.

431 [(c)] (g) Each citation issued under this section, or a copy of each citation, may be
432 served upon any person upon whom a summons may be served:
433 (i) in accordance with the Utah Rules of Civil Procedure;
434 (ii) personally or upon the person's agent by:
435 (A) a division investigator [or by];
436 (B) any person specially designated by the director; or
437 (C) a building inspector; or
438 (iii) by mail.
439 [(d)] (h) (i) If within 20 calendar days from the service of a citation, the person to
440 whom the citation [was] is issued fails to request a hearing to contest the citation, the citation
441 becomes the final order of the division or political subdivision and is not subject to further
442 agency review.
443 (ii) The period to contest a citation may be extended by the division or political
444 subdivision for cause.
445 [(e)] (i) The division may refuse to issue or renew, suspend, revoke, or place on
446 probation the license of a licensee who fails to comply with a citation after it becomes final.
447 [(f)] (j) The failure of an applicant for licensure to comply with a citation after it
448 becomes final is a ground for denial of license.
449 [(g)] (k) No citation may be issued under this section after the expiration of six months
450 following the occurrence of any violation.
451 [(h)] (l) Fines shall be assessed by the director [or], the director's designee, or political
452 subdivision according to the following:
453 (i) for a first offense handled pursuant to [Subsection] Subsections (4)(a) through (c), a
454 fine of up to $1,000;
455 (ii) for a second offense handled pursuant to [Subsection] Subsections (4)(a) through
456 (c), a fine of up to $2,000; and
457 (iii) for any subsequent offense handled pursuant to [Subsection] Subsections (4)(a)
458 through (c), a fine of up to $2,000 for each day of continued offense.
459 [(i)] (m) (i) For purposes of issuing a final order under this section and assessing a fine
460 under Subsection (4)[(i)](l), an offense constitutes a second or subsequent offense if:
461 (A) the division or political subdivision previously issued a final order determining that

462 a person committed a first or second offense in violation of Subsection 58-55-308 (2) or
463 Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), or (19); or
464 (B) (I) the division or political subdivision initiated an action for a first or second
465 offense;
466 (II) no final order has been issued by the division or political subdivision in the action
467 initiated under Subsection (4)[(i)](m)(i)(B)(I);
468 (III) the division or political subdivision determines during an investigation that
469 occurred after the initiation of the action under Subsection (4)[(i)](m)(i)(B)(I) that the person
470 committed a second or subsequent violation of [the provisions of] Subsection 58-55-308 (2) or
471 Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), or (19); and
472 (IV) after determining that the person committed a second or subsequent offense under
473 Subsection (4)[(i)](m)(i)(B)(III), the division or political subdivision issues a final order on the
474 action initiated under Subsection (4)[(i)](m)(i)(B)(I).
475 (ii) In issuing a final order for a second or subsequent offense under Subsection
476 (4)[(i)](m)(i), the division or political subdivision shall comply with the requirements of this
477 section.
478 (5) [Any penalty] (a) (i) Unless otherwise agreed upon by the division and political
479 subdivision, a fine imposed by the director or political subdivision under Subsection (4)[(h)](l)
480 shall be collected by the entity that issued the citation.
481 (ii) A fine collected by the division under Subsection (5)(a)(i) shall be deposited into
482 the Commerce Service Fund.
483 (iii) A fine collected by a political subdivision under Subsection (5)(a)(i) shall be
484 deposited into a fund and shall be expended only for the enforcement of provisions concerning
485 the construction trades, including for legal enforcement costs and for training building
486 inspectors.
487 (b) Any penalty [which] that is not paid may be collected by the director or political
488 subdivision by [either]:
489 (i) referring the matter to a collection agency; or
490 (ii) bringing an action in the district court:
491 (A) of the county in which the person against whom the penalty is imposed resides; or
492 (B) in the county where the director's office [of the director] or political subdivision is

493 located.
494 (c) Any county attorney or the attorney general of the state is to provide legal
495 assistance and advice to the director in any action to collect the penalty.
496 (d) In any action brought to enforce [the provisions of] this section, reasonable
497 attorney's fees and costs shall be awarded.




Legislative Review Note
as of 1-24-06 3:23 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