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S.B. 228





Chief Sponsor: Margaret Dayton

House Sponsor: Carl W. Duckworth

             7      LONG TITLE
             8      General Description:
             9          This bill amends and repeals provisions relating to the regulation of water well drilling.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    authorizes the state engineer to commence an enforcement action against a person
             14      that:
             15              .    fails to file a well driller report; or
             16              .    drills a well without a license;
             17          .    authorizes the state engineer to make rules to:
             18              .    establish enforcement procedures for failure to meet construction standards;
             19              .    set a fine amount; and
             20              .    establish well driller report requirements;
             21          .    authorizes the state engineer to retain the money from a fine for inspection,
             22      enforcement, and education;
             23          .    combines three sections into one section; and
             24          .    makes technical corrections.
             25      Monies Appropriated in this Bill:
             26          None
             27      Other Special Clauses:

             28          None
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          58-55-305, as last amended by Laws of Utah 2007, Chapter 186
             32          73-2-25, as last amended by Laws of Utah 2007, Chapter 136
             33          73-3-25, as last amended by Laws of Utah 2004, Chapter 191
             34          73-3b-208, as enacted by Laws of Utah 1991, Chapter 146
             35      REPEALS:
             36          73-3-22, as last amended by Laws of Utah 2005, Chapter 215
             37          73-3-24, as last amended by Laws of Utah 2004, Chapter 191
             39      Be it enacted by the Legislature of the state of Utah:
             40          Section 1. Section 58-55-305 is amended to read:
             41           58-55-305. Exemptions from licensure.
             42          (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
             43      persons may engage in acts or practices included within the practice of construction trades,
             44      subject to the stated circumstances and limitations, without being licensed under this chapter:
             45          (a) an authorized representative of the United States government or an authorized
             46      employee of the state or any of its political subdivisions when working on construction work of
             47      the state or the subdivision, and when acting within the terms of the person's trust, office, or
             48      employment;
             49          (b) a person engaged in construction or operation incidental to the construction and
             50      repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
             51      districts, and drainage districts or construction and repair relating to farming, dairying,
             52      agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
             53      excavations, well drilling, as defined in [Subsection 73-3-24 (3)] Section 73-3-25 , hauling to
             54      and from construction sites, and lumbering;
             55          (c) public utilities operating under the rules of the Public Service Commission on
             56      construction work incidental to their own business;
             57          (d) sole owners of property engaged in building:
             58          (i) no more than one residential structure per year and no more than three residential

             59      structures per five years on their property for their own noncommercial, nonpublic use; except,
             60      a person other than the property owner or individuals described in Subsection (1)(e), who
             61      engages in building the structure must be licensed under this chapter if the person is otherwise
             62      required to be licensed under this chapter; or
             63          (ii) structures on their property for their own noncommercial, nonpublic use which are
             64      incidental to a residential structure on the property, including sheds, carports, or detached
             65      garages;
             66          (e) (i) a person engaged in construction or renovation of a residential building for
             67      noncommercial, nonpublic use if that person:
             68          (A) works without compensation other than token compensation that is not considered
             69      salary or wages; and
             70          (B) works under the direction of the property owner who engages in building the
             71      structure;
             72          (ii) for purposes of this Subsection (1)(e), "token compensation" means compensation
             73      paid by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
             74      exempted from licensure under this Subsection (1)(e), that is:
             75          (A) minimal in value when compared with the fair market value of the services
             76      provided by the person;
             77          (B) not related to the fair market value of the services provided by the person; and
             78          (C) is incidental to providing of services by the person including paying for or
             79      providing meals or refreshment while services are being provided, or paying reasonable
             80      transportation costs incurred by the person in travel to the site of construction;
             81          (f) a person engaged in the sale or merchandising of personal property that by its design
             82      or manufacture may be attached, installed, or otherwise affixed to real property who has
             83      contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
             84      attach that property;
             85          (g) a contractor submitting a bid on a federal aid highway project, if, before
             86      undertaking construction under that bid, the contractor is licensed under this chapter;
             87          (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
             88      improvement of a building with a contracted or agreed value of less than $1,000, including
             89      both labor and materials, and including all changes or additions to the contracted or agreed

             90      upon work;
             91          (ii) notwithstanding Subsection (1)(h)(i):
             92          (A) work in the plumbing and electrical trades must be performed by a licensed
             93      electrician or plumber except as otherwise provided in this section;
             94          (B) installation, repair, or replacement of a residential or commercial gas appliance or a
             95      combustion system must be performed by a person who has received certification under
             96      Subsection 58-55-308 (2) except as otherwise provided in Subsection 58-55-308 (2)(d) or
             97      58-55-308 (3); and
             98          (C) installation, repair, or replacement of water-based fire protection systems must be
             99      performed by a licensed fire suppression systems contractor or a licensed journeyman plumber;
             100          (i) a person practicing a specialty contractor classification or construction trade which
             101      is 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
             107      repair of a fixture or an appliance in a residential or small commercial building, or structure
             108      used for agricultural use, as defined in Section 58-56-4 , provided that no modification is made
             109      to:
             110          (A) existing culinary water, soil, waste, or vent piping; or
             111          (B) a gas appliance or combustion system; and
             112          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
             113      an appliance is not included in the exemption provided under Subsection (1)(k)(i);
             114          (l) a person who ordinarily would be subject to the plumber licensure requirements
             115      under this chapter when installing or repairing a water conditioner or other water treatment
             116      apparatus if the conditioner or apparatus:
             117          (i) meets the appropriate state construction codes or local plumbing standards; and
             118          (ii) is installed or repaired under the direction of a person authorized to do the work
             119      under an appropriate specialty contractor license;
             120          (m) a person who ordinarily would be subject to the electrician licensure requirements

             121      under this chapter when employed by:
             122          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
             123      contractors or constructors, or street railway systems; or
             124          (ii) public service corporations, rural electrification associations, or municipal utilities
             125      who generate, distribute, or sell electrical energy for light, heat, or power;
             126          (n) a person involved in minor electrical work incidental to a mechanical or service
             127      installation;
             128          (o) a student participating in construction trade education and training programs
             129      approved by the commission with the concurrence of the director under the condition that:
             130          (i) all work intended as a part of a finished product on which there would normally be
             131      an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
             132      building inspector; and
             133          (ii) a licensed contractor obtains the necessary building permits; and
             134          (p) a delivery person when replacing any of the following existing equipment with a
             135      new gas appliance, provided there is an existing gas shutoff valve at the appliance:
             136          (i) gas range;
             137          (ii) gas dryer;
             138          (iii) outdoor gas barbeque; or
             139          (iv) outdoor gas patio heater.
             140          (2) (a) A compliance agency as defined in Subsection 58-56-3 (4) that issues a building
             141      permit to any person requesting a permit as a sole owner of property referred to in Subsection
             142      (1)(d) shall notify the division, in writing or through electronic transmission, of the issuance of
             143      the permit.
             144          (b) The division shall evaluate the effectiveness of the notification requirement under
             145      Subsection (2)(a) and report its findings, including any recommendations for modification to or
             146      termination of the requirement, to the Legislature's Business and Labor Interim Committee
             147      prior to the 2008 General Session.
             148          Section 2. Section 73-2-25 is amended to read:
             149           73-2-25. State engineer enforcement powers.
             150          (1) For purposes of this section, "initial order" means one of the following issued by
             151      the state engineer:

             152          (a) a notice of violation; or
             153          (b) a cease and desist order.
             154          (2) (a) The state engineer may commence an enforcement action under this section if
             155      the state engineer finds that a person:
             156          (i) is diverting, impounding, or using water for which no water right has been
             157      established;
             158          (ii) is diverting, impounding, or using water in violation of an existing water right;
             159          (iii) violates Section 73-5-4 ;
             160          (iv) violates Section 73-5-9 ;
             161          (v) violates a written distribution order from the state engineer;
             162          (vi) violates an order issued under Section 73-3-29 regarding the alteration of the bed
             163      or bank of a natural stream channel; [or]
             164          (vii) violates a notice or order regarding dam safety issued under Chapter 5a, Dam
             165      Safety[.];
             166          (viii) fails to submit a report required by Section 73-3-25 ; or
             167          (ix) engages in well drilling without a license required by Section 73-3-25 .
             168          (b) To commence an enforcement action under this section, the state engineer shall
             169      issue an initial order, which shall include:
             170          (i) a description of the violation;
             171          (ii) notice of any penalties to which a person may be subject under Section 73-2-26 ;
             172      and
             173          (iii) notice that the state engineer may treat each day's violation of the provisions listed
             174      in Subsection (2)(a) as a separate violation under Subsection 73-2-26 (1)(d).
             175          (c) The state engineer's issuance and enforcement of an initial order is exempt from
             176      Title 63, Chapter 46b, Administrative Procedures Act.
             177          (3) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             178      state engineer shall make rules necessary to enforce an initial order, which shall include:
             179          (a) provisions consistent with this section and Section 73-2-26 for enforcement of the
             180      initial order if a person to whom an initial order is issued fails to respond to the order or abate
             181      the violation;
             182          (b) the right to a hearing, upon request by a person against whom an initial order is

             183      issued; and
             184          (c) provisions for timely issuance of a final order after:
             185          (i) the person to whom the initial order is issued fails to respond to the order or abate
             186      the violation; or
             187          (ii) a hearing held under Subsection (3)(b).
             188          (4) A person may not intervene in an enforcement action commenced under this
             189      section.
             190          (5) After issuance of a final order under rules made pursuant to Subsection (3)(c), the
             191      state engineer shall serve a copy of the final order on the person against whom the order is
             192      issued by:
             193          (a) personal service under Utah Rules of Civil Procedure 5; or
             194          (b) certified mail.
             195          (6) (a) The state engineer's final order may be reviewed by trial de novo by the district
             196      court in:
             197          (i) Salt Lake County; or
             198          (ii) the county where the violation occurred.
             199          (b) A person shall file a petition for judicial review of the state engineer's final order
             200      issued under this section within 20 days from the day on which the final order was served on
             201      that person.
             202          (7) The state engineer may bring suit in a court of competent jurisdiction to enforce a
             203      final order issued under this section.
             204          (8) If the state engineer prevails in an action brought under Subsection (6)(b) or (7), the
             205      state may recover all court costs and a reasonable attorney fee.
             206          Section 3. Section 73-3-25 is amended to read:
             207           73-3-25. Well driller's license -- Bond -- Revocation or suspension for
             208      noncompliance.
             209          [(1) (a) Every person that constructs a well in the state shall obtain a license from the
             210      state engineer.]
             211          [(b) The state engineer shall enact rules defining the form, the expiration date, and the
             212      renewal cycle of the application for a license.]
             213          [(c) Well drillers' licenses are not transferable. The state engineer shall enact rules for

             214      well construction according to the procedures and requirements of Title 63, Chapter 46a, Utah
             215      Administrative Rulemaking Act.]
             216          (1) As used in this section:
             217          (a) "Well" means an open or cased excavation or borehole for diverting, using, or
             218      monitoring underground water made by any construction method.
             219          (b) "Well driller" means a person with a license to engage in well drilling for
             220      compensation or otherwise.
             221          (c) "Well drilling" means the act of drilling, constructing, repairing, renovating,
             222      deepening, cleaning, developing, or abandoning a well.
             223          (2) (a) (i) A person [who constructs a well in this state must first] shall obtain a license
             224      as provided in this section before engaging in well drilling.
             225          [(ii) Before a well driller's license will be issued, the applicant must]
             226          (ii) The state engineer may enforce Subsection (2)(a)(i) in accordance with Sections
             227      73-2-25 and 73-2-26 .
             228          (b) A person applying for a well driller license shall file a well driller bond:
             229          (i) with the state engineer[.]; and
             230          [(iii) The bond shall be made payable to the Office of the State Engineer.]
             231          (ii) payable to the Division of Water Rights.
             232          (c) (i) Compliance with this section and the rules authorized by this section is required
             233      to obtain or renew a well driller license.
             234          (ii) The state engineer may refuse to issue a license if it appears an applicant violated a
             235      rule authorized by this section.
             236          (d) A well driller license is not transferable.
             237          [(iv)] (3) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             238      Act, the state engineer may make rules [to set] establishing:
             239          (a) the amount, form, and general administrative requirements of a well driller bond[.
             240      Proper compliance with the provisions of this section and the rules enacted under the authority
             241      of this section are required to obtain or renew a license.];
             242          [(b) (i) Well drillers]
             243          (b) the amount of a well driller fine;
             244          (c) minium well drilling standards;

             245          (d) well driller reporting requirements;
             246          (e) the requirements for obtaining a well driller license, including:
             247          (i) a well driller license application form;
             248          (ii) the license expiration date; and
             249          (iii) the license renewal cycle; and
             250          (f) a procedure to enforce a well drilling standard or other well drilling requirement.
             251          (4) (a) A well driller shall submit a report to the state engineer:
             252          (i) containing data relating to each well;
             253          (ii) within 30 days after the completion or abandonment of the well drilling;
             254          (iii) on forms furnished by the state engineer; and
             255          (iv) containing information required by the state engineer.
             256          (b) In accordance with Sections 73-2-25 and 73-2-26 , the state engineer may
             257      commence an enforcement action against a person who fails to submit a report required by
             258      Subsection (4)(a) within 90 days of the day on which the well driller license lapses.
             259          (5) (a) A well driller shall comply with the rules [enacted by the state engineer under
             260      this chapter] authorized by this section.
             261          [(ii)] (b) If the state engineer determines[, following an investigation, that the licensee]
             262      that a well driller has failed to comply with [these rules] a rule, the state engineer may, in
             263      accordance with the procedures established in rule:
             264          (i) (A) order that a well driller pay a fine; or
             265          (B) revoke or suspend the license[, and]; and
             266          (ii) exact the bond [and deposit the money as a nonlapsing dedicated credit].
             267          (6) (a) The state engineer shall retain the money from a fine or exacting a bond as a
             268      dedicated credit.
             269          [(iii)] (b) The state engineer may expend [the funds]:
             270          (i) money retained from a fine for:
             271          (A) well drilling inspection;
             272          (B) well drilling enforcement; or
             273          (C) well driller education; and
             274          (ii) money retained from exacting a bond to investigate or correct [any deficiencies
             275      which] a deficiency by a well driller that could adversely affect the public interest resulting

             276      from noncompliance with [the rules promulgated under this chapter by any well driller] a rule
             277      authorized by this section.
             278          [(iv) The state engineer may refuse to issue a license to a well driller if it appears that
             279      there has been a violation of the rules or a failure to comply with Section 73-3-22 .]
             280          Section 4. Section 73-3b-208 is amended to read:
             281           73-3b-208. Proposed new well -- Compliance with water well construction rules.
             282          An applicant for a recovery permit who intends to construct a new well to recover
             283      stored water must comply with [Section 73-3-22 and] Sections [ 73-3-24 through] 73-3-25 and
             284      73-3-26 , and rules adopted under those sections, regarding the construction of water wells.
             285          Section 5. Repealer.
             286          This bill repeals:
             287          Section 73-3-22, Underground water -- Report of well and tunnel drillers.
             288          Section 73-3-24, Definitions.

Legislative Review Note
    as of 2-13-08 1:57 PM

Office of Legislative Research and General Counsel

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