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S.B. 295

             1     

SECURITY ALARM BUSINESS LICENSING

             2     
AMENDMENTS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Margaret Dayton

             6     
House Sponsor: Stephen H. Urquhart

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah Construction Trades Licensing Act by requiring that a
             11      person be licensed in order to work on alarm systems.
             12      Highlighted Provisions:
             13          This bill:
             14          .    requires that work as a security alarm business or company or as an alarm company
             15      agent be performed by a licensed alarm business or company or a licensed alarm
             16      company agent, except as otherwise provided in the Utah Construction Trades
             17      Licensing Act;
             18          .    prohibits employing an unlicensed alarm business or company or an unlicensed
             19      individual as an alarm company agent, except under specified exemptions; and
             20          .    requires an alarm business or company to be licensed to maintain or commence
             21      action for collection of compensation for work performed for which a license is
             22      required.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:


             28      AMENDS:
             29          58-55-305, as last amended by Laws of Utah 2007, Chapter 186
             30          58-55-501, as last amended by Laws of Utah 2004, Chapter 45
             31          58-55-604, as renumbered and amended by Laws of Utah 1994, Chapter 181
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 58-55-305 is amended to read:
             35           58-55-305. Exemptions from licensure.
             36          (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
             37      persons may engage in acts or practices included within the practice of construction trades,
             38      subject to the stated circumstances and limitations, without being licensed under this chapter:
             39          (a) an authorized representative of the United States government or an authorized
             40      employee of the state or any of its political subdivisions when working on construction work of
             41      the state or the subdivision, and when acting within the terms of the person's trust, office, or
             42      employment;
             43          (b) a person engaged in construction or operation incidental to the construction and
             44      repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
             45      districts, and drainage districts or construction and repair relating to farming, dairying,
             46      agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
             47      excavations, well drilling, as defined in Subsection 73-3-24 (3), hauling to and from
             48      construction sites, and lumbering;
             49          (c) public utilities operating under the rules of the Public Service Commission on
             50      construction work incidental to their own business;
             51          (d) sole owners of property engaged in building:
             52          (i) no more than one residential structure per year and no more than three residential
             53      structures per five years on their property for their own noncommercial, nonpublic use[;],
             54      except, a person other than the property owner or individuals described in Subsection (1)(e),
             55      who engages in building the structure must be licensed under this chapter if the person is
             56      otherwise required to be licensed under this chapter; or
             57          (ii) structures on their property for their own noncommercial, nonpublic use which are
             58      incidental to a residential structure on the property, including sheds, carports, or detached


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


             90      Subsection 58-55-308 (2) except as otherwise provided in Subsection 58-55-308 (2)(d) or
             91      58-55-308 (3); [and]
             92          (C) installation, repair, or replacement of water-based fire protection systems must be
             93      performed by a licensed fire suppression systems contractor or a licensed journeyman plumber;
             94      and
             95          (D) work as an alarm business or company or as an alarm company agent shall be
             96      performed by a licensed alarm business or company or a licensed alarm company agent, except
             97      as otherwise provided in this chapter;
             98          (i) a person practicing a specialty contractor classification or construction trade which
             99      [is not classified by rule by] the director does not classify by administrative rule as significantly
             100      impacting the public's health, safety, and welfare;
             101          (j) owners and lessees of property and persons regularly employed for wages by owners
             102      or lessees of property or their agents for the purpose of maintaining the property, are exempt
             103      from this chapter when doing work upon the property;
             104          (k) (i) a person engaged in minor plumbing work incidental to the replacement or
             105      repair of a fixture or an appliance in a residential or small commercial building, or structure
             106      used for agricultural use, as defined in Section 58-56-4 , provided that no modification is made
             107      to:
             108          (A) existing culinary water, soil, waste, or vent piping; or
             109          (B) a gas appliance or combustion system; and
             110          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
             111      an appliance is not included in the exemption provided under Subsection (1)(k)(i);
             112          (l) a person who ordinarily would be subject to the plumber licensure requirements
             113      under this chapter when installing or repairing a water conditioner or other water treatment
             114      apparatus if the conditioner or apparatus:
             115          (i) meets the appropriate state construction codes or local plumbing standards; and
             116          (ii) is installed or repaired under the direction of a person authorized to do the work
             117      under an appropriate specialty contractor license;
             118          (m) a person who ordinarily would be subject to the electrician licensure requirements
             119      under this chapter when employed by:
             120          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator


             121      contractors or constructors, or street railway systems; or
             122          (ii) public service corporations, rural electrification associations, or municipal utilities
             123      who generate, distribute, or sell electrical energy for light, heat, or power;
             124          (n) a person involved in minor electrical work incidental to a mechanical or service
             125      installation;
             126          (o) a student participating in construction trade education and training programs
             127      approved by the commission with the concurrence of the director under the condition that:
             128          (i) all work intended as a part of a finished product on which there would normally be
             129      an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
             130      building inspector; and
             131          (ii) a licensed contractor obtains the necessary building permits; and
             132          (p) a delivery person when replacing any of the following existing equipment with a
             133      new gas appliance, provided there is an existing gas shutoff valve at the appliance:
             134          (i) gas range;
             135          (ii) gas dryer;
             136          (iii) outdoor gas barbeque; or
             137          (iv) outdoor gas patio heater.
             138          (2) [(a)] A compliance agency as defined in Subsection 58-56-3 (4) that issues a
             139      building permit to any person requesting a permit as a sole owner of property referred to in
             140      Subsection (1)(d) shall notify the division, in writing or through electronic transmission, of the
             141      issuance of the permit.
             142          [(b) The division shall evaluate the effectiveness of the notification requirement under
             143      Subsection (2)(a) and report its findings, including any recommendations for modification to or
             144      termination of the requirement, to the Legislature's Business and Labor Interim Committee
             145      prior to the 2008 General Session.]
             146          Section 2. Section 58-55-501 is amended to read:
             147           58-55-501. Unlawful conduct.
             148          Unlawful conduct includes:
             149          (1) engaging in a construction trade, acting as a contractor, an alarm business or
             150      company, or an alarm company agent, or representing oneself to be engaged in a construction
             151      trade or to be acting as a contractor in a construction trade requiring licensure, unless the


             152      person doing any of these is appropriately licensed or exempted from licensure under this
             153      chapter;
             154          (2) acting in a construction trade, as an alarm business or company, or as an alarm
             155      company agent beyond the scope of the license held;
             156          (3) hiring or employing in any manner an unlicensed person, other than an employee
             157      for wages who is not required to be licensed under this chapter, to engage in a construction
             158      trade for which licensure is required or to act as a contractor or subcontractor in a construction
             159      trade requiring licensure;
             160          (4) applying for or obtaining a building permit either for oneself or another when not
             161      licensed or exempted from licensure as a contractor under this chapter;
             162          (5) issuing a building permit to any person for whom there is no evidence of a current
             163      license or exemption from licensure as a contractor under this chapter;
             164          (6) applying for or obtaining a building permit for the benefit of or on behalf of any
             165      other person who is required to be licensed under this chapter but who is not licensed or is
             166      otherwise not entitled to obtain or receive the benefit of the building permit;
             167          (7) failing to obtain a building permit when required by law or rule;
             168          (8) submitting a bid for any work for which a license is required under this chapter by a
             169      person not licensed or exempted from licensure as a contractor under this chapter;
             170          (9) willfully or deliberately misrepresenting or omitting a material fact in connection
             171      with an application to obtain or renew a license under this chapter;
             172          (10) allowing one's license to be used by another except as provided by statute or rule;
             173          (11) doing business under a name other than the name appearing on the license, except
             174      as permitted by statute or rule;
             175          (12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
             176      journeyman plumber, residential journeyman plumber, journeyman electrician, master
             177      electrician, or residential electrician, failing to directly supervise an apprentice under one's
             178      supervision or exceeding the number of apprentices one is allowed to have under his
             179      supervision;
             180          (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
             181      funds in payment for a specific project from an owner or any other person, which funds are to
             182      pay for work performed or materials and services furnished for that specific project, and after


             183      receiving the funds to exercise unauthorized control over the funds by failing to pay the full
             184      amounts due and payable to persons who performed work or furnished materials or services
             185      within a reasonable period of time;
             186          (14) employing [as] an unlicensed alarm business or company or an unlicensed
             187      individual as an alarm company agent, except as permitted under the exemption from licensure
             188      provisions under Section 58-1-307 ;
             189          (15) if licensed as an alarm company or alarm company agent, filing with the division
             190      fingerprint cards for an applicant which are not those of the applicant, or are in any other way
             191      false or fraudulent and intended to mislead the division in its consideration of the applicant for
             192      licensure;
             193          (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
             194          (a) the building or construction laws of this state or any political subdivision;
             195          (b) the safety and labor laws applicable to a project;
             196          (c) any provision of the health laws applicable to a project;
             197          (d) the workers' compensation insurance laws of the state applicable to a project;
             198          (e) the laws governing withholdings for employee state and federal income taxes,
             199      unemployment taxes, FICA, or other required withholdings; or
             200          (f) reporting, notification, and filing laws of this state or the federal government;
             201          (17) aiding or abetting any person in evading the provisions of this chapter or rules
             202      established under the authority of the division to govern this chapter;
             203          (18) engaging in the construction trade or as a contractor for the construction of
             204      residences of up to two units when not currently registered or exempt from registration as a
             205      qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
             206      Fund Act;
             207          (19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
             208      written contract the notification required in Section 38-11-108 ;
             209          (20) wrongfully filing a mechanics' lien in violation of Section 38-1-25 ; or
             210          (21) if licensed as a contractor, not completing a three-hour core education class and an
             211      additional three hours of professional education approved by the division and the Construction
             212      Services Commission within each two-year renewal cycle, beginning with the two-year renewal
             213      cycle that starts July 1, 2005, and ends June 30, 2007 unless an exemption has been granted to


             214      the licensee by the Construction Services Commission, with the concurrence of the division,
             215      except that this Subsection (21) is repealed effective July 1, 2010 and its implementation is
             216      subject to the division receiving adequate funding for its implementation through a legislative
             217      appropriation.
             218          Section 3. Section 58-55-604 is amended to read:
             219           58-55-604. Proof of licensure to maintain or commence action.
             220          [No] A contractor or alarm business or company may not act as agent or commence or
             221      maintain any action in any court of the state for collection of compensation for performing any
             222      act for which a license is required by this chapter without alleging and proving that [he was a
             223      properly] the licensed contractor or alarm business or company was appropriately licensed
             224      when the contract sued upon was entered into, and when the alleged cause of action arose.




Legislative Review Note
    as of 2-12-08 1:13 PM


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