H.B. 459 Enrolled

1

CONSTRUCTION TRADES EXEMPTION
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Stephen H. Urquhart
5 Senate Sponsor: Curtis S. Bramble
6
7 LONG TITLE
8 General Description:
9 This bill modifies the exemptions from licensure provisions of the Utah Construction
10 Trades Licensing Act related to the ceiling cost set for exempt building projects.
11 Highlighted Provisions:
12 This bill:
13 . increases the ceiling on the building cost exemption in the Utah Construction Trades
14 Licensing Act from under $1,000 to under $3,000 on alterations, repairs, additions,
15 remodels, or improvements to a building.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 AMENDS:
22 58-55-305, as last amended by Laws of Utah 2007, Chapter 186
23
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 58-55-305 is amended to read:
26 58-55-305. Exemptions from licensure.
27 (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
28 persons may engage in acts or practices included within the practice of construction trades,
29 subject to the stated circumstances and limitations, without being licensed under this chapter:

30 (a) an authorized representative of the United States government or an authorized
31 employee of the state or any of its political subdivisions when working on construction work of
32 the state or the subdivision, and when acting within the terms of the person's trust, office, or
33 employment;
34 (b) a person engaged in construction or operation incidental to the construction and
35 repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
36 districts, and drainage districts or construction and repair relating to farming, dairying,
37 agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
38 excavations, well drilling, as defined in Subsection 73-3-24 (3), hauling to and from construction
39 sites, and lumbering;
40 (c) public utilities operating under the rules of the Public Service Commission on
41 construction work incidental to their own business;
42 (d) sole owners of property engaged in building:
43 (i) no more than one residential structure per year and no more than three residential
44 structures per five years on their property for their own noncommercial, nonpublic use; except,
45 a person other than the property owner or individuals described in Subsection (1)(e), who
46 engages in building the structure must be licensed under this chapter if the person is otherwise
47 required to be licensed under this chapter; or
48 (ii) structures on their property for their own noncommercial, nonpublic use which are
49 incidental to a residential structure on the property, including sheds, carports, or detached
50 garages;
51 (e) (i) a person engaged in construction or renovation of a residential building for
52 noncommercial, nonpublic use if that person:
53 (A) works without compensation other than token compensation that is not considered
54 salary or wages; and
55 (B) works under the direction of the property owner who engages in building the
56 structure; and
57 (ii) for purposes of this Subsection (1)(e), "token compensation" means compensation

58 paid by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
59 exempted from licensure under this Subsection (1)(e), that is:
60 (A) minimal in value when compared with the fair market value of the services provided
61 by the person;
62 (B) not related to the fair market value of the services provided by the person; and
63 (C) is incidental to providing of services by the person including paying for or providing
64 meals or refreshment while services are being provided, or paying reasonable transportation
65 costs incurred by the person in travel to the site of construction;
66 (f) a person engaged in the sale or merchandising of personal property that by its design
67 or manufacture may be attached, installed, or otherwise affixed to real property who has
68 contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
69 attach that property;
70 (g) a contractor submitting a bid on a federal aid highway project, if, before undertaking
71 construction under that bid, the contractor is licensed under this chapter;
72 (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
73 improvement of a building with a contracted or agreed value of less than [$1,000] $3,000,
74 including both labor and materials, and including all changes or additions to the contracted or
75 agreed upon work; and
76 (ii) notwithstanding Subsection (1)(h)(i):
77 (A) work in the plumbing and electrical trades on a Subsection (1)(h)(i) project must be
78 performed by a licensed journeyman electrician or journeyman plumber except as otherwise
79 provided in this section;
80 (B) installation, repair, or replacement of a residential or commercial gas appliance or a
81 combustion system on a Subsection (1)(h)(i) project must be performed by a person who has
82 received certification under Subsection 58-55-308 (2) except as otherwise provided in
83 Subsection 58-55-308 (2)(d) or 58-55-308 (3); [and]
84 (C) installation, repair, or replacement of water-based fire protection systems on a
85 Subsection (1)(h)(i) project must be performed by a licensed fire suppression systems contractor

86 or a licensed journeyman plumber;
87 (D) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i)
88 project must be performed by a licensed alarm business or company or a licensed alarm
89 company agent;
90 (E) installation, repair, or replacement of a heating, ventilation, or air conditioning
91 system (HVAC) on a Subsection (1)(h)(i) project must be performed by an HVAC contractor
92 licensed by the division; and
93 (F) if the total value of the project is greater than $1,000, the person shall file with the
94 division a one-time affirmation, subject to periodic reaffirmation as established by division rule,
95 that the person has:
96 (I) public liability insurance in coverage amounts and form established by division rule;
97 and
98 (II) if applicable, workers compensation insurance which would cover an employee of
99 the person if that employee worked on the construction project;
100 (i) a person practicing a specialty contractor classification or construction trade which is
101 not classified by rule by the director as significantly impacting the public's health, safety, and
102 welfare;
103 (j) owners and lessees of property and persons regularly employed for wages by owners
104 or lessees of property or their agents for the purpose of maintaining the property, are exempt
105 from this chapter when doing work upon the property;
106 (k) (i) a person engaged in minor plumbing work incidental to the replacement or repair
107 of a fixture or an appliance in a residential or small commercial building, or structure used for
108 agricultural use, as defined in Section 58-56-4 , provided that no modification is made to:
109 (A) existing culinary water, soil, waste, or vent piping; or
110 (B) a gas appliance or combustion system; and
111 (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
112 an appliance is not included in the exemption provided under Subsection (1)(k)(i);
113 (l) a person who ordinarily would be subject to the plumber licensure requirements

114 under this chapter when installing or repairing a water conditioner or other water treatment
115 apparatus if the conditioner or apparatus:
116 (i) meets the appropriate state construction codes or local plumbing standards; and
117 (ii) is installed or repaired under the direction of a person authorized to do the work
118 under an appropriate specialty contractor license;
119 (m) a person who ordinarily would be subject to the electrician licensure requirements
120 under this chapter when employed by:
121 (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
122 contractors or constructors, or street railway systems; or
123 (ii) public service corporations, rural electrification associations, or municipal utilities
124 who generate, distribute, or sell electrical energy for light, heat, or power;
125 (n) a person involved in minor electrical work incidental to a mechanical or service
126 installation;
127 (o) a student participating in construction trade education and training programs
128 approved by the commission with the concurrence of the director under the condition that:
129 (i) all work intended as a part of a finished product on which there would normally be
130 an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
131 building inspector; and
132 (ii) a licensed contractor obtains the necessary building permits; and
133 (p) a delivery person when replacing any of the following existing equipment with a
134 new gas appliance, provided there is an existing gas shutoff valve at the appliance:
135 (i) gas range;
136 (ii) gas dryer;
137 (iii) outdoor gas barbeque; or
138 (iv) outdoor gas patio heater.
139 (2) [(a)] A compliance agency as defined in Subsection 58-56-3 (4) that issues a building
140 permit to [any] a person requesting a permit as a sole owner of property referred to in
141 Subsection (1)(d) shall notify the division, in writing or through electronic transmission, of the

142 issuance of the permit.
143 [(b) The division shall evaluate the effectiveness of the notification requirement under
144 Subsection (2)(a) and report its findings, including any recommendations for modification to or
145 termination of the requirement, to the Legislature's Business and Labor Interim Committee prior
146 to the 2008 General Session.]