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H.B. 117

             1     

MECHANICAL CONTRACTOR LICENSING

             2     
PROVISIONS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Larry B. Wiley

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies Title 58, Chapter 55, Utah Construction Trades Licensing Act, to
             11      license heating, venting, and air conditioning (HVAC) mechanical technicians.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies construction trade licensing provisions to include HVAC mechanical
             15      technicians;
             16          .    sets the HVAC mechanical technician-to-apprentice ratio;
             17          .    creates the HVAC Mechanical Technicians Licensing Board;
             18          .    modifies the membership of the Construction Services Commission;
             19          .    authorizes the Division of Occupational and Professional Licensing to issue licenses
             20      to various HVAC mechanical technicians;
             21          .    repeals provisions excepting HVAC mechanical technicians from licensure;
             22          .    removes a repeal date;
             23          .    requires that a licensed HVAC mechanical technician complete fuel and electricity
             24      efficiency education; and
             25          .    makes technical corrections.
             26      Monies Appropriated in this Bill:
             27          None


             28      Other Special Clauses:
             29          None
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          58-55-102, as last amended by Laws of Utah 2008, Chapter 215
             33          58-55-103, as last amended by Laws of Utah 2008, Chapter 382
             34          58-55-201, as last amended by Laws of Utah 2008, Chapter 215
             35          58-55-301, as last amended by Laws of Utah 2008, Chapter 215
             36          58-55-302, as last amended by Laws of Utah 2008, Chapters 215 and 382
             37          58-55-305, as last amended by Laws of Utah 2008, Chapters 282, 354, and 377
             38          58-55-501, as last amended by Laws of Utah 2008, Chapter 377
             39     
             40      Be it enacted by the Legislature of the state of Utah:
             41          Section 1. Section 58-55-102 is amended to read:
             42           58-55-102. Definitions.
             43          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             44          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
             45      maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
             46      except as provided in Subsection (1)(b).
             47          (b) "Alarm business or company" does not include:
             48          (i) a person engaged in the manufacture and sale of alarm systems when that person is
             49      not engaged in the installation, maintenance, alteration, repair, replacement, servicing, or
             50      monitoring of alarm systems, and the manufacture or sale occurs only at a place of business
             51      established by the person engaged in the manufacture or sale and does not involve site visits at
             52      the place or intended place of installation of an alarm system; or
             53          (ii) an owner of an alarm system, or an employee of the owner of an alarm system who
             54      is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
             55      of the alarm system owned by that owner.
             56          (2) "Alarm company agent" means any individual employed within this state by a
             57      person engaged in the alarm business.
             58          (3) "Alarm system" means equipment and devices assembled for the purpose of:


             59          (a) detecting and signaling unauthorized intrusion or entry into or onto certain
             60      premises; or
             61          (b) signaling a robbery or attempted robbery on protected premises.
             62          (4) "Apprentice electrician" means a person licensed under this chapter as an
             63      apprentice electrician who is learning the electrical trade under approved supervision of a
             64      master electrician, a residential master electrician, a journeyman electrician, or a residential
             65      journeyman electrician.
             66          (5) "Apprentice HVAC mechanical technician" means a person licensed under this
             67      chapter as an apprentice HVAC mechanical technician who is learning the HVAC trade under
             68      approved supervision of a licensed HVAC supervisor.
             69          [(5)] (6) "Apprentice plumber" means a person licensed under this chapter as an
             70      apprentice plumber who is learning the plumbing trade under approved supervision of a master
             71      plumber, a residential master plumber, a journeyman plumber, or a residential journeyman
             72      plumber.
             73          [(6)] (7) "Approved supervision" means the immediate supervision of apprentices by
             74      qualified licensed electricians, HVAC mechanical technicians, or plumbers as a part of a
             75      planned program of training.
             76          [(7)] (8) "Board" means the [Electrician] Electricians Licensing Board, HVAC
             77      Mechanical Technicians Licensing Board, Alarm System Security and Licensing Board, or
             78      Plumbers Licensing Board created in Section 58-55-201 .
             79          [(8)] (9) "Combustion system" means an assembly consisting of:
             80          (a) piping and components with a means for conveying, either continuously or
             81      intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
             82      appliance;
             83          (b) the electric control and combustion air supply and venting systems, including air
             84      ducts; and
             85          (c) components intended to achieve control of quantity, flow, and pressure.
             86          [(9)] (10) "Commission" means the Construction Services Commission created under
             87      Section 58-55-103 .
             88          [(10)] (11) "Construction trade" means any trade or occupation involving:
             89          (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition


             90      to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
             91      or other project, development, or improvement to other than personal property; and
             92          (ii) constructing, remodeling, or repairing a manufactured home or mobile home as
             93      defined in Section 58-56-3 ; or
             94          (b) installation or repair of a residential or commercial natural gas appliance or
             95      combustion system.
             96          [(11)] (12) "Construction trades instructor" means a person licensed under this chapter
             97      to teach one or more construction trades in both a classroom and project environment, where a
             98      project is intended for sale to or use by the public and is completed under the direction of the
             99      instructor, who has no economic interest in the project.
             100          [(12)] (13) (a) "Contractor" means any person who for compensation other than wages
             101      as an employee undertakes any work in the construction, plumbing, or electrical trade for
             102      which licensure is required under this chapter and includes:
             103          (i) a person who builds any structure on his own property for the purpose of sale or
             104      who builds any structure intended for public use on his own property;
             105          (ii) any person who represents himself to be a contractor by advertising or any other
             106      means;
             107          (iii) any person engaged as a maintenance person, other than an employee, who
             108      regularly engages in activities set forth under the definition of "construction trade";
             109          (iv) any person engaged in any construction trade for which licensure is required under
             110      this chapter; or
             111          (v) a construction manager who performs management and counseling services on a
             112      construction project for a fee.
             113          (b) "Contractor" does not include an alarm company or alarm company agent.
             114          [(13)] (14) (a) "Electrical trade" means the performance of any electrical work involved
             115      in the installation, construction, alteration, change, repair, removal, or maintenance of facilities,
             116      buildings, or appendages or appurtenances.
             117          (b) "Electrical trade" does not include:
             118          (i) transporting or handling electrical materials;
             119          (ii) preparing clearance for raceways for wiring; or
             120          (iii) work commonly done by unskilled labor on any installations under the exclusive


             121      control of electrical utilities.
             122          (c) For purposes of Subsection [(13)] (14)(b):
             123          (i) no more than one unlicensed person may be so employed unless more than five
             124      licensed electricians are employed by the shop; and
             125          (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio
             126      permitted by this Subsection [(13)] (14)(c).
             127          [(14)] (15) "Employee" means an individual as defined by the division by rule giving
             128      consideration to the definition adopted by the Internal Revenue Service and the Department of
             129      Workforce Services.
             130          [(15)] (16) "Engage in a construction trade" means to:
             131          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
             132      in a construction trade; or
             133          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
             134      to believe one is or will act as a contractor.
             135          [(16)] (17) (a) "Financial responsibility" means a demonstration of a current and
             136      expected future condition of financial solvency evidencing a reasonable expectation to the
             137      division and the board that an applicant or licensee can successfully engage in business as a
             138      contractor without jeopardy to the public health, safety, and welfare.
             139          (b) Financial responsibility may be determined by an evaluation of the total history
             140      concerning the licensee or applicant including past, present, and expected condition and record
             141      of financial solvency and business conduct.
             142          [(17)] (18) "Gas appliance" means any device that uses natural gas to produce light,
             143      heat, power, steam, hot water, refrigeration, or air conditioning.
             144          [(18)] (19) (a) "General building contractor" means a person licensed under this
             145      chapter as a general building contractor qualified by education, training, experience, and
             146      knowledge to perform or superintend construction of structures for the support, shelter, and
             147      enclosure of persons, animals, chattels, or movable property of any kind or any of the
             148      components of that construction except plumbing, electrical work, [mechanical] HVAC work,
             149      and manufactured housing installation, for which the general building contractor shall employ
             150      the services of a contractor licensed in the particular specialty, except that a general building
             151      contractor engaged in the construction of single-family and multifamily residences up to four


             152      units may perform the mechanical work and hire a licensed plumber or electrician as an
             153      employee.
             154          (b) The division may by rule exclude general building contractors from engaging in the
             155      performance of other construction specialties in which there is represented a substantial risk to
             156      the public health, safety, and welfare, and for which a license is required unless that general
             157      building contractor holds a valid license in that specialty classification.
             158          [(19)] (20) (a) "General engineering contractor" means a person licensed under this
             159      chapter as a general engineering contractor qualified by education, training, experience, and
             160      knowledge to perform construction of fixed works in any of the following: irrigation, drainage,
             161      water, power, water supply, flood control, inland waterways, harbors, railroads, highways,
             162      tunnels, airports and runways, sewers and bridges, refineries, pipelines, chemical and industrial
             163      plants requiring specialized engineering knowledge and skill, piers, and foundations, or any of
             164      the components of those works.
             165          (b) A general engineering contractor may not perform construction of structures built
             166      primarily for the support, shelter, and enclosure of persons, animals, and chattels.
             167          (21) (a) "HVAC" or "heating, ventilation, or air conditioning" means a mechanical
             168      system that uses electricity, fuel, or both to provide temperature control or air circulation.
             169          (b) "HVAC" does not include:
             170          (i) equipment that is exempted by the International Mechanical Code or the
             171      International Fuel Gas Code; or
             172          (ii) an appliance listed for domestic use, including a refrigerator, a range, a washer, a
             173      dryer, or a window air conditioner.
             174          (22) "HVAC trade" means work involving the installation, construction, alteration,
             175      change, repair, removal, or maintenance of an HVAC system in a facility, a building, or an
             176      appendage or appurtenance to a facility or building.
             177          [(20)] (23) "Immediate supervision" means reasonable direction, oversight, inspection,
             178      and evaluation of the work of a person, in or out of the immediate presence of the supervising
             179      person, so as to ensure that the end result complies with applicable standards.
             180          [(21)] (24) "Individual" means a natural person.
             181          [(22)] (25) "Journeyman electrician" means a person licensed under this chapter as a
             182      journeyman electrician having the qualifications, training, experience, and knowledge to wire,


             183      install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
             184          (26) "Journeyman HVAC mechanical technician" means a person licensed under this
             185      chapter as a journeyman HVAC mechanical technician having the qualifications, training,
             186      experience, and knowledge to install, service, maintain, and repair an HVAC system.
             187          [(23)] (27) "Journeyman plumber" means a person licensed under this chapter as a
             188      journeyman plumber having the qualifications, training, experience, and technical knowledge
             189      to engage in the plumbing trade.
             190          (28) "Licensed HVAC supervisor" means a person who:
             191          (a) supervises a licensed apprentice HVAC mechanical technician; and
             192          (b) is:
             193          (i) a licensed master HVAC mechanical technician;
             194          (ii) a journeyman HVAC mechanical technician;
             195          (iii) a residential master HVAC mechanical technician; or
             196          (iv) a residential journeyman HVAC mechanical technician.
             197          [(24)] (29) "Master electrician" means a person licensed under this chapter as a master
             198      electrician having the qualifications, training, experience, and knowledge to properly plan,
             199      layout, and supervise the wiring, installation, and repair of electrical apparatus and equipment
             200      for light, heat, power, and other purposes.
             201          (30) "Master HVAC mechanical technician" means a person licensed under this
             202      chapter as a master HVAC mechanical technician having the qualifications, training,
             203      experience, and knowledge to properly plan, layout, and supervise the installation, service,
             204      maintenance, and repair of an HVAC system.
             205          [(25)] (31) "Master plumber" means a person licensed under this chapter as a master
             206      plumber having the qualifications, training, experience, and knowledge to properly plan and
             207      layout projects and supervise persons in the plumbing trade.
             208          [(26)] (32) "Person" means a natural person, sole proprietorship, joint venture,
             209      corporation, limited liability company, association, or organization of any type.
             210          [(27)] (33) (a) "Plumbing trade" means the performance of any mechanical work
             211      pertaining to the installation, alteration, change, repair, removal, maintenance, or use in
             212      buildings, or within three feet beyond the outside walls of buildings of pipes, fixtures, and
             213      fittings for:


             214          (i) delivery of the water supply;
             215          (ii) discharge of liquid and water carried waste; or
             216          (iii) the building drainage system within the walls of the building.
             217          (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
             218      fixtures and fixture traps, soil, waste and vent pipes, and the building drain and roof drains
             219      together with their devices, appurtenances, and connections where installed within the outside
             220      walls of the building.
             221          [(28) (a) "Ratio of apprentices" means, for the purpose of determining compliance with
             222      the requirements for planned programs of training and electrician apprentice licensing
             223      applications, the shop ratio of apprentice electricians to journeyman or master electricians shall
             224      be one journeyman or master electrician to one apprentice on industrial and commercial work,
             225      and one journeyman or master electrician to three apprentices on residential work.]
             226          [(b) On-the-job training shall be under circumstances in which the ratio of apprentices
             227      to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
             228      three apprentices to one supervisor on residential projects.]
             229          [(29)] (34) "Residential and small commercial contractor" means a person licensed
             230      under this chapter as a residential and small commercial contractor qualified by education,
             231      training, experience, and knowledge to perform or superintend the construction of
             232      single-family residences, multifamily residences up to four units, and commercial construction
             233      of not more than three stories above ground and not more than 20,000 square feet, or any of the
             234      components of that construction except plumbing, electrical work, mechanical work, and
             235      manufactured housing installation, for which the residential and small commercial contractor
             236      shall employ the services of a contractor licensed in the particular specialty, except that a
             237      residential and small commercial contractor engaged in the construction of single-family and
             238      multifamily residences up to four units may perform the mechanical work and hire a licensed
             239      plumber or electrician as an employee.
             240          [(30)] (35) "Residential building," as it relates to the license classification of residential
             241      journeyman plumber [and], residential master plumber, residential journeyman HVAC
             242      mechanical technician, and residential master HVAC mechanical technician means a single or
             243      multiple family dwelling of up to four units.
             244          [(31)] (36) "Residential journeyman electrician" means a person licensed under this


             245      chapter as a residential journeyman electrician having the qualifications, training, experience,
             246      and knowledge to wire, install, and repair electrical apparatus and equipment for light, heat,
             247      power, and other purposes on buildings using primarily nonmetallic sheath cable.
             248          (37) "Residential journeyman HVAC mechanical technician" means a person licensed
             249      under this chapter as a residential journeyman HVAC mechanical technician having the
             250      qualifications, training, experience, and knowledge to install, service, maintain, and repair an
             251      HVAC system.
             252          [(32)] (38) "Residential journeyman plumber" means a person licensed under this
             253      chapter as a residential journeyman plumber having the qualifications, training, experience, and
             254      knowledge to engage in the plumbing trade as limited to the plumbing of residential buildings.
             255          [(33)] (39) "Residential master electrician" means a person licensed under this chapter
             256      as a residential master electrician having the qualifications, training, experience, and
             257      knowledge to properly plan, layout, and supervise the wiring, installation, and repair of
             258      electrical apparatus and equipment for light, heat, power, and other purposes on residential
             259      projects.
             260          (40) "Residential master HVAC mechanical technician" means a person licensed under
             261      this chapter as a residential master HVAC mechanical technician having the qualifications,
             262      training, experience, and knowledge to properly plan, layout, and supervise the installation,
             263      service, maintenance, and repair of an HVAC system.
             264          [(34)] (41) "Residential master plumber" means a person licensed under this chapter as
             265      a residential master plumber having the qualifications, training, experience, and knowledge to
             266      properly plan and layout projects and supervise persons in the plumbing trade as limited to the
             267      plumbing of residential buildings.
             268          [(35)] (42) "Residential project," as it relates to an electrician or electrical contractor,
             269      means buildings primarily wired with nonmetallic sheathed cable, in accordance with standard
             270      rules and regulations governing this work, including the National Electrical Code, and in which
             271      the voltage does not exceed 250 volts line to line and 125 volts to ground.
             272          [(36)] (43) (a) "Specialty contractor" means a person licensed under this chapter under
             273      a specialty contractor classification established by rule, who is qualified by education, training,
             274      experience, and knowledge to perform those construction trades and crafts requiring
             275      specialized skill, the regulation of which are determined by the division to be in the best


             276      interest of the public health, safety, and welfare.
             277          (b) A specialty contractor may perform work in crafts or trades other than those in
             278      which he is licensed if they are incidental to the performance of his licensed craft or trade.
             279          [(37)] (44) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
             280          [(38)] (45) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-55-502
             281      and as may be further defined by rule.
             282          [(39)] (46) "Wages" means amounts due to an employee for labor or services whether
             283      the amount is fixed or ascertained on a time, task, piece, commission, or other basis for
             284      calculating the amount.
             285          Section 2. Section 58-55-103 is amended to read:
             286           58-55-103. Construction Services Commission created -- Functions --
             287      Appointment -- Qualifications and terms of members -- Vacancies -- Expenses --
             288      Meetings.
             289          (1) (a) There is created within the division the Construction Services Commission.
             290          (b) The commission shall:
             291          (i) with the concurrence of the director, make reasonable rules under Title 63G,
             292      Chapter 3, Utah Administrative Rulemaking Act, to administer and enforce this chapter which
             293      are consistent with this chapter including:
             294          (A) licensing of various licensees;
             295          (B) examination requirements and administration of the examinations, to include
             296      approving and establishing a passing score for applicant examinations;
             297          (C) standards of supervision for students or persons in training to become qualified to
             298      obtain a license in the trade they represent; and
             299          (D) standards of conduct for various licensees;
             300          (ii) approve or disapprove fees adopted by the division under Section 63J-1-303 ;
             301          (iii) except where the boards conduct them, conduct all administrative hearings not
             302      delegated to an administrative law judge relating to the licensing of any applicant;
             303          (iv) except as otherwise provided in Sections 38-11-207 and 58-55-503 , with the
             304      concurrence of the director, impose sanctions against licensees and certificate holders with the
             305      same authority as the division under Section 58-1-401 ;
             306          (v) advise the director on the administration and enforcement of any matters affecting


             307      the division and the construction industry;
             308          (vi) advise the director on matters affecting the division budget;
             309          (vii) advise and assist trade associations in conducting construction trade seminars and
             310      industry education and promotion; and
             311          (viii) perform other duties as provided by this chapter.
             312          [(2) (a) Initially the commission shall be comprised of the five members of the
             313      Contractors Licensing Board and two of the three chair persons from the Plumbers Licensing
             314      Board, the Alarm System Security and Licensing Board, and the Electricians Licensing Board.]
             315          [(b) The terms of office of the commission members who are serving on the
             316      Contractors Licensing Board shall continue as they serve on the commission.]
             317          [(c)] (2) [Beginning July 1, 2004, the] The commission shall be comprised of [nine] 11
             318      members appointed by the executive director with the approval of the governor from the
             319      following groups:
             320          [(i)] (a) one member shall be a licensed general engineering contractor;
             321          [(ii)] (b) one member shall be a licensed general building contractor;
             322          [(iii)] (c) two members shall be licensed residential and small commercial contractors;
             323          [(iv)] (d) [three] four members shall be [the three chair persons]:
             324          (i) the chairperson from the Plumbers Licensing Board[, the];
             325          (ii) the chairperson from the Alarm System Security and Licensing Board[, and];
             326          (iii) the chairperson from the Electricians Licensing Board; and
             327          (iv) the chairperson from the HVAC Mechanical Technicians Licensing Board; and
             328          [(v)] (e) [two] three members shall be from the general public[, provided, however that
             329      the certified public accountant on the Contractors Licensing Board will continue to serve until
             330      the current term expires, after which both members under this Subsection (2)(c)(v) shall be
             331      appointed from the general public].
             332          (3) (a) Except as required by Subsection (3)(b), as terms of current commission
             333      members expire, the executive director with the approval of the governor shall appoint each
             334      new member or reappointed member to a four-year term ending June 30.
             335          (b) Notwithstanding the requirements of Subsection (3)(a), the executive director with
             336      the approval of the governor shall, at the time of appointment or reappointment, adjust the
             337      length of terms to stagger the terms of commission members so that approximately 1/2 of the


             338      commission members are appointed every two years.
             339          (c) A commission member may not serve more than two consecutive terms.
             340          (4) The commission shall elect annually one of its members as chair, for a term of one
             341      year.
             342          (5) When a vacancy occurs in the membership for any reason, the replacement shall be
             343      appointed for the unexpired term.
             344          (6) (a) Members may not receive compensation or benefits for their services, but may
             345      receive per diem and expenses incurred in the performance of the members' official duties at
             346      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             347          (b) Members may decline to receive per diem and expenses for their service.
             348          (7) (a) The commission shall meet at least monthly unless the director determines
             349      otherwise.
             350          (b) The director may call additional meetings at the director's discretion, upon the
             351      request of the chair, or upon the written request of four or more commission members.
             352          (8) (a) [Five] Six members constitute a quorum for the transaction of business.
             353          (b) If a quorum is present [when a vote is taken, the affirmative vote of commission],
             354      the action of a majority of the members present [is the act] constitutes the action of the
             355      commission.
             356          (9) The commission shall comply with the procedures and requirements of Title 13,
             357      Chapter 1, Department of Commerce, and Title 63G, Chapter 4, Administrative Procedures
             358      Act, in all of its adjudicative proceedings.
             359          Section 3. Section 58-55-201 is amended to read:
             360           58-55-201. Boards created -- Duties.
             361          (1) There is created a Plumbers Licensing Board, an Alarm System Security and
             362      Licensing Board, [and] an Electricians Licensing Board, and an HVAC Mechanical
             363      Technicians Licensing Board. Members of the boards shall be selected to provide
             364      representation as follows:
             365          (a) The Plumbers Licensing Board consists of five members as follows:
             366          (i) two members shall be licensed from among the license classifications of master or
             367      journeyman plumber;
             368          (ii) two members shall be licensed plumbing contractors; and


             369          (iii) one member shall be from the public at large with no history of involvement in the
             370      construction trades.
             371          (b) (i) The Alarm System Security and Licensing Board consists of five members as
             372      follows:
             373          (A) three individuals who are officers or owners of a licensed alarm business;
             374          (B) one individual from among nominees of the Utah Peace Officers Association; and
             375          (C) one individual representing the general public.
             376          (ii) The Alarm System Security and Licensing Board shall designate one of its
             377      members on a permanent or rotating basis to:
             378          (A) assist the division in reviewing complaints concerning the unlawful or
             379      unprofessional conduct of a licensee; and
             380          (B) advise the division in its investigation of these complaints.
             381          (iii) A board member who has, under this Subsection (1)(b)(iii), reviewed a complaint
             382      or advised in its investigation is disqualified from participating with the board when the board
             383      serves as a presiding officer in an adjudicative proceeding concerning the complaint.
             384          (c) The Electricians Licensing Board consists of five members as follows:
             385          (i) two members shall be licensed from among the license classifications of master or
             386      journeyman electrician, of whom one shall represent a union organization and one shall be
             387      selected having no union affiliation;
             388          (ii) two shall be licensed electrical contractors of whom one shall represent a union
             389      organization and one shall be selected having no union affiliation; and
             390          (iii) one member shall be from the public at large with no history of involvement in the
             391      construction trades or union affiliation.
             392          (d) The HVAC Mechanical Technicians Licensing Board consists of five members as
             393      follows:
             394          (i) two members shall be licensed from among the license classifications of master or
             395      journeyman HVAC mechanical technician, including:
             396          (A) one who is a member of a union organization; and
             397          (B) one who has no union affiliation;
             398          (ii) two members shall be licensed HVAC contractors, including:
             399          (A) one who is a member of a union organization; and


             400          (B) one who has no union affiliation; and
             401          (iii) one member shall be from the public at large who has:
             402          (A) no history of involvement in a construction trade; and
             403          (B) no union affiliation.
             404          (2) The duties, functions, and responsibilities of each board include the following:
             405          (a) recommending to the commission appropriate rules;
             406          (b) recommending to the commission policy and budgetary matters;
             407          (c) approving and establishing a passing score for applicant examinations;
             408          (d) overseeing the screening of applicants for licensing, renewal, reinstatement, and
             409      relicensure;
             410          (e) assisting the commission in establishing standards of supervision for students or
             411      persons in training to become qualified to obtain a license in the occupation or profession it
             412      represents; and
             413          (f) acting as presiding officer in conducting hearings associated with the adjudicative
             414      proceedings and in issuing recommended orders when so authorized by the commission.
             415          Section 4. Section 58-55-301 is amended to read:
             416           58-55-301. License required -- License classifications.
             417          (1) (a) A person engaged in the construction trades licensed under this chapter, as a
             418      contractor regulated under this chapter, as an alarm business or company, or as an alarm
             419      company agent, shall become licensed under this chapter before engaging in that trade or
             420      contracting activity in this state unless specifically exempted from licensure under Section
             421      58-1-307 or 58-55-305 .
             422          (b) The license issued under this chapter and the business license issued by the local
             423      jurisdiction in which the licensee has its principal place of business shall be the only licenses
             424      required for the licensee to engage in a trade licensed by this chapter, within the state.
             425          (c) Neither the state nor any of its political subdivisions may require of a licensee any
             426      additional business licenses, registrations, certifications, contributions, donations, or anything
             427      else established for the purpose of qualifying a licensee under this chapter to do business in that
             428      local jurisdiction, except for contract prequalification procedures required by state agencies, or
             429      the payment of any fee for the license, registration, or certification established as a condition to
             430      do business in that local jurisdiction.


             431          (2) The division shall issue licenses under this chapter to qualified persons in the
             432      following classifications:
             433          (a) general engineering contractor;
             434          (b) general building contractor;
             435          (c) residential and small commercial contractor;
             436          (d) specialty contractor;
             437          (e) master plumber;
             438          (f) residential master plumber;
             439          (g) journeyman plumber;
             440          (h) apprentice plumber;
             441          (i) residential journeyman plumber;
             442          (j) master electrician;
             443          (k) residential master electrician;
             444          (l) journeyman electrician;
             445          (m) residential journeyman electrician;
             446          (n) apprentice electrician;
             447          (o) construction trades instructor:
             448          (i) general engineering classification;
             449          (ii) general building classification;
             450          (iii) electrical classification;
             451          (iv) plumbing classification; and
             452          (v) mechanical classification;
             453          (p) alarm company; [and]
             454          (q) alarm company agent[.];
             455          (r) master HVAC mechanical technician;
             456          (s) residential master HVAC mechanical technician;
             457          (t) journeyman HVAC mechanical technician;
             458          (u) residential journeyman HVAC mechanical technician; and
             459          (v) apprentice HVAC mechanical technician.
             460          (3) (a) An applicant may apply for a license in one or more classification or specialty
             461      contractor subclassification.


             462          (b) A license shall be granted in each classification or subclassification for which the
             463      applicant qualifies.
             464          (c) A separate application and fee must be submitted for each license classification or
             465      subclassification.
             466          Section 5. Section 58-55-302 is amended to read:
             467           58-55-302. Qualifications for licensure.
             468          (1) Each applicant for a license under this chapter shall:
             469          (a) submit an application prescribed by the division;
             470          (b) pay a fee as determined by the department under Section 63J-1-303 ;
             471          (c) (i) meet the examination requirements established by rule by the commission with
             472      the concurrence of the director, except for the classifications of apprentice plumber and
             473      apprentice electrician for whom no examination is required; or
             474          (ii) if required in Section 58-55-304 , the individual qualifier must pass the required
             475      examination if the applicant is a business entity;
             476          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
             477          (e) if an applicant for a contractor's license:
             478          (i) produce satisfactory evidence of financial responsibility, except for a construction
             479      trades instructor for whom evidence of financial responsibility is not required;
             480          (ii) produce satisfactory evidence of knowledge and experience in the construction
             481      industry and knowledge of the principles of the conduct of business as a contractor, reasonably
             482      necessary for the protection of the public health, safety, and welfare; and
             483          (iii) be a licensed master electrician if an applicant for an electrical contractor's license
             484      or a licensed master residential electrician if an applicant for a residential electrical contractor's
             485      license; [or]
             486          (iv) be a licensed master HVAC mechanical technician or a licensed master residential
             487      HVAC mechanical technician if an applicant for:
             488          (A) an HVAC contractor's license; or
             489          (B) a refrigeration contractor's license; or
             490          [(iv)] (v) be a licensed master plumber if an applicant for a plumbing contractor's
             491      license or a licensed [master] residential master plumber if an applicant for a residential
             492      plumbing contractor's license; and


             493          (f) if an applicant for a construction trades instructor license, satisfy any additional
             494      requirements established by rule.
             495          (2) After approval of an applicant for a contractor's license by the applicable board and
             496      the division, the applicant shall file the following with the division before the division issues
             497      the license:
             498          (a) proof of workers' compensation insurance which covers employees of the applicant
             499      in accordance with applicable Utah law;
             500          (b) proof of public liability insurance in coverage amounts and form established by rule
             501      except for a construction trades instructor for whom public liability insurance is not required;
             502      and
             503          (c) proof of registration as required by applicable law with the:
             504          (i) Utah Department of Commerce;
             505          (ii) Division of Corporations and Commercial Code;
             506          (iii) Unemployment Insurance Division in the Department of Workforce Services, for
             507      purposes of Title 35A, Chapter 4, Employment Security Act;
             508          (iv) State Tax Commission; and
             509          (v) Internal Revenue Service.
             510          (3) In addition to the general requirements for each applicant in Subsection (1),
             511      applicants shall comply with the following requirements to be licensed in the following
             512      classifications:
             513          (a) (i) A master plumber shall produce satisfactory evidence that the applicant:
             514          (A) has been a licensed journeyman plumber for at least two years and had two years of
             515      supervisory experience as a licensed journeyman plumber in accordance with division rule;
             516          (B) has received at least an associate of applied science degree or similar degree
             517      following the completion of a course of study approved by the division and had one year of
             518      supervisory experience as a licensed journeyman plumber in accordance with division rule; or
             519          (C) meets the qualifications determined by the division in collaboration with the board
             520      to be equivalent to Subsection (3)(a)(i)(A) or (B).
             521          (ii) An individual holding a valid Utah license as a journeyman plumber, based on at
             522      least four years of practical experience as a licensed apprentice under the supervision of a
             523      licensed journeyman plumber and four years as a licensed journeyman plumber, in effect


             524      immediately prior to May 5, 2008, is on and after May 5, 2008, considered to hold a current
             525      master plumber license under this chapter, and satisfies the requirements of this Subsection
             526      (3)(a) for the purpose of renewal or reinstatement of that license under Section 58-55-303 .
             527          (iii) An individual holding a valid plumbing contractor's license or residential
             528      plumbing contractor's license, in effect immediately prior to May 5, 2008, is on or after May 5,
             529      2008:
             530          (A) considered to hold a current master plumber license under this chapter if licensed
             531      as a plumbing contractor and a journeyman plumber, and satisfies the requirements of this
             532      Subsection (3)(a) for purposes of renewal or reinstatement of that license under Section
             533      58-55-303 ; and
             534          (B) considered to hold a current residential master plumber license under this chapter if
             535      licensed as a residential plumbing contractor and a residential journeyman plumber, and
             536      satisfies the requirements of this Subsection (3)(a) for purposes of renewal or reinstatement of
             537      that license under Section 58-55-303 .
             538          (b) A [master] residential master plumber applicant shall produce satisfactory evidence
             539      that the applicant:
             540          (i) has been a licensed residential journeyman plumber for at least two years and had
             541      two years of supervisory experience as a licensed residential journeyman plumber in
             542      accordance with division rule; or
             543          (ii) meets the qualifications determined by the division in collaboration with the board
             544      to be equivalent to Subsection (3)(b)(i).
             545          (c) A journeyman plumber applicant shall produce satisfactory evidence of:
             546          (i) successful completion of the equivalent of at least four years of full-time training
             547      and instruction as a licensed apprentice plumber under supervision of a licensed master
             548      plumber or journeyman plumber and in accordance with a planned program of training
             549      approved by the division;
             550          (ii) at least eight years of full-time experience approved by the division in collaboration
             551      with the Plumbers Licensing Board; or
             552          (iii) satisfactory evidence of meeting the qualifications determined by the board to be
             553      equivalent to Subsection (3)(c)(i) or (c)(ii).
             554          (d) A residential journeyman plumber shall produce satisfactory evidence of:


             555          (i) completion of the equivalent of at least three years of full-time training and
             556      instruction as a licensed apprentice plumber under the supervision of a licensed residential
             557      master plumber, licensed residential journeyman plumber, or licensed journeyman plumber in
             558      accordance with a planned program of training approved by the division;
             559          (ii) completion of at least six years of full-time experience in a maintenance or repair
             560      trade involving substantial plumbing work; or
             561          (iii) meeting the qualifications determined by the board to be equivalent to Subsection
             562      (3)(d)(i) or (d)(ii).
             563          (e) The conduct of licensed apprentice plumbers and their licensed supervisors shall be
             564      in accordance with the following:
             565          (i) while engaging in the trade of plumbing, a licensed apprentice plumber shall be
             566      under the immediate supervision of a licensed master plumber, licensed residential master
             567      plumber, licensed journeyman plumber, or a licensed residential journeyman plumber; and
             568          (ii) a licensed apprentice plumber in the fourth through tenth year of training may work
             569      without supervision for a period not to exceed eight hours in any 24-hour period, but if the
             570      apprentice does not become a licensed journeyman plumber or licensed residential journeyman
             571      plumber by the end of the tenth year of apprenticeship, this nonsupervision provision no longer
             572      applies.
             573          (f) A master electrician applicant shall produce satisfactory evidence that the applicant:
             574          (i) is a graduate electrical engineer of an accredited college or university approved by
             575      the division and has one year of practical electrical experience as a licensed apprentice
             576      electrician;
             577          (ii) is a graduate of an electrical trade school, having received an associate of applied
             578      sciences degree following successful completion of a course of study approved by the division,
             579      and has two years of practical experience as a licensed journeyman electrician;
             580          (iii) has four years of practical experience as a journeyman electrician; or
             581          (iv) meets the qualifications determined by the board to be equivalent to Subsection
             582      (3)(f)(i), (ii), or (iii).
             583          (g) A [master] residential master electrician applicant shall produce satisfactory
             584      evidence that the applicant:
             585          (i) has at least two years of practical experience as a residential journeyman electrician;


             586      or
             587          (ii) meets the qualifications determined by the board to be equivalent to this practical
             588      experience.
             589          (h) A journeyman electrician applicant shall produce satisfactory evidence that the
             590      applicant:
             591          (i) has successfully completed at least four years of full-time training and instruction as
             592      a licensed apprentice electrician under the supervision of a master electrician or journeyman
             593      electrician and in accordance with a planned training program approved by the division;
             594          (ii) has at least eight years of full-time experience approved by the division in
             595      collaboration with the Electricians Licensing Board; or
             596          (iii) meets the qualifications determined by the board to be equivalent to Subsection
             597      (3)(h)(i) or (ii).
             598          (i) A residential journeyman electrician applicant shall produce satisfactory evidence
             599      that the applicant:
             600          (i) has successfully completed two years of training in an electrical training program
             601      approved by the division;
             602          (ii) has four years of practical experience in wiring, installing, and repairing electrical
             603      apparatus and equipment for light, heat, and power under the supervision of a licensed master,
             604      journeyman, residential master, or residential journeyman electrician; or
             605          (iii) meets the qualifications determined by the division and [applicable board]
             606      Electricians Licensing Board to be equivalent to Subsection (3)(i)(i) or (ii).
             607          (j) The conduct of licensed apprentice electricians and their licensed supervisors shall
             608      be in accordance with the following:
             609          (i) A licensed apprentice electrician shall be under the immediate supervision of a
             610      licensed master, journeyman, residential master, or residential journeyman electrician. An
             611      apprentice in the fourth year of training may work without supervision for a period not to
             612      exceed eight hours in any 24-hour period.
             613          (ii) A licensed master, journeyman, residential master, or residential journeyman
             614      electrician may have under immediate supervision on a residential project up to three licensed
             615      apprentice electricians.
             616          (iii) A licensed master or journeyman electrician may have under immediate


             617      supervision on nonresidential projects only one licensed apprentice electrician.
             618          (k) A master HVAC mechanical technician applicant shall produce satisfactory
             619      evidence that the applicant:
             620          (i) (A) is a graduate mechanical engineer of an accredited college or university
             621      approved by the division; and
             622          (B) has one year of practical HVAC experience as a licensed apprentice HVAC
             623      mechanical technician;
             624          (ii) (A) is a graduate of an HVAC trade school, having received an associate of applied
             625      sciences degree following successful completion of a course of study approved by the division;
             626      and
             627          (B) has two years of practical experience as a licensed journeyman HVAC mechanical
             628      technician;
             629          (iii) has four years of practical experience as a journeyman HVAC mechanical
             630      technician; or
             631          (iv) meets the qualifications determined by the board to be equivalent to Subsection
             632      (3)(k)(i), (ii), or (iii).
             633          (l) Beginning on June 6, 2012 an individual is considered to hold a master journeyman
             634      HVAC mechanical technician license, and satisfies the requirements of Subsection (3)(k) for
             635      purposes of renewal of that license under Section 58-55-303 , if, before June 6, 2012, the
             636      individual:
             637          (i) worked in an HVAC trade; and
             638          (ii) had at least eight years practical experience.
             639          (m) A residential master HVAC mechanical technician applicant shall produce
             640      satisfactory evidence that the applicant:
             641          (i) has at least two years of practical experience as a residential journeyman HVAC
             642      mechanical technician; or
             643          (ii) meets the qualifications determined by the board to be equivalent to two years of
             644      practical experience as an HVAC mechanical technician.
             645          (n) Beginning on June 6, 2012 an individual is considered to hold a residential master
             646      journeyman HVAC mechanical technician license, and satisfies the requirements of Subsection
             647      (3)(m) for purposes of renewal of that license under Section 58-55-303 , if, before June 6, 2012,


             648      the individual:
             649          (i) worked in an HVAC trade; and
             650          (ii) had at least four years practical experience.
             651          (o) A journeyman HVAC mechanical technician applicant shall produce satisfactory
             652      evidence that the applicant:
             653          (i) has successfully completed at least four years of full-time training and instruction as
             654      a licensed apprentice HVAC mechanical technician:
             655          (A) under the supervision of a master HVAC mechanical technician or journeyman
             656      HVAC mechanical technician; and
             657          (B) in accordance with a planned training program approved by the division;
             658          (ii) has at least eight years of full-time experience approved by the division in
             659      collaboration with the HVAC Mechanical Technicians Licensing Board; or
             660          (iii) meets the qualifications determined by the board to be equivalent to Subsection
             661      (3)(o)(i) or (ii).
             662          (p) Beginning on June 6, 2012 an individual is considered to hold a journeyman HVAC
             663      mechanical technician license, and satisfies the requirements of Subsection (3)(o) for purposes
             664      of renewal of that license under Section 58-55-303 , if, before June 6, 2012, the individual:
             665          (i) worked in an HVAC trade; and
             666          (ii) had at least four years practical experience.
             667          (q) A residential journeyman HVAC mechanical technician applicant shall produce
             668      satisfactory evidence that the applicant:
             669          (i) has successfully completed two years of training in an HVAC training program
             670      approved by the division;
             671          (ii) has four years of practical experience in the installation, service, maintenance, and
             672      repair of HVAC equipment in a residential building under the supervision of a licensed master,
             673      journeyman, residential master, or residential journeyman HVAC mechanical technician; or
             674          (iii) meets the qualifications determined by the division and HVAC Mechanical
             675      Technicians Board to be equivalent to Subsection (3)(q)(i) or (ii).
             676          (r) Beginning on June 6, 2012 an individual is considered to hold a residential
             677      journeyman HVAC mechanical technician license, and satisfies the requirements of Subsection
             678      (3)(q) for purposes of renewal of that license under Section 58-55-303 , if, before June 6, 2012,


             679      the individual:
             680          (i) worked in an HVAC trade; and
             681          (ii) had at least two years practical experience.
             682          (s) (i) A licensed apprentice HVAC mechanical technician shall be under the
             683      immediate supervision of a licensed HVAC supervisor.
             684          (ii) A licensed apprentice HVAC mechanical technician in the fourth year of training
             685      may work without immediate supervision for a period not to exceed eight hours in any 24-hour
             686      period.
             687          (iii) A licensed HVAC supervisor may immediately supervise no more than three
             688      licensed apprentice HVAC mechanical technicians on a residential building.
             689          (iv) A licensed master HVAC mechanical technician or journeyman HVAC
             690      mechanical technician acting as a licensed HVAC supervisor may immediately supervise no
             691      more than one licensed apprentice HVAC mechanical technician on a nonresidential building.
             692          (v) A residential master HVAC mechanical technician or a residential journeyman
             693      HVAC technician may not supervise a licensed apprentice HVAC technician on a
             694      nonresidential building.
             695          [(k)] (t) An alarm company applicant shall:
             696          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
             697      the applicant who:
             698          (A) demonstrates 6,000 hours of experience in the alarm company business;
             699          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
             700      company business or in a construction business; and
             701          (C) passes an examination component established by rule by the commission with the
             702      concurrence of the director;
             703          (ii) if a corporation, provide:
             704          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             705      of all corporate officers, directors, and those responsible management personnel employed
             706      within the state or having direct responsibility for managing operations of the applicant within
             707      the state; and
             708          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             709      of all shareholders owning 5% or more of the outstanding shares of the corporation, except this


             710      shall not be required if the stock is publicly listed and traded;
             711          (iii) if a limited liability company, provide:
             712          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             713      of all company officers, and those responsible management personnel employed within the
             714      state or having direct responsibility for managing operations of the applicant within the state;
             715      and
             716          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             717      of all individuals owning 5% or more of the equity of the company;
             718          (iv) if a partnership, the names, addresses, dates of birth, Social Security numbers, and
             719      fingerprint cards of all general partners, and those responsible management personnel
             720      employed within the state or having direct responsibility for managing operations of the
             721      applicant within the state;
             722          (v) if a proprietorship, the names, addresses, dates of birth, Social Security numbers,
             723      and fingerprint cards of the proprietor, and those responsible management personnel employed
             724      within the state or having direct responsibility for managing operations of the applicant within
             725      the state;
             726          (vi) be of good moral character in that officers, directors, shareholders described in
             727      Subsection (3)[(k)](t)(ii)(B), partners, proprietors, and responsible management personnel have
             728      not been convicted of a felony, a misdemeanor involving moral turpitude, or any other crime
             729      that when considered with the duties and responsibilities of an alarm company is considered by
             730      the board to indicate that the best interests of the public are served by granting the applicant a
             731      license;
             732          (vii) document that none of the applicant's officers, directors, shareholders described in
             733      Subsection (3)[(k)](t)(ii)(B), partners, proprietors, and responsible management personnel have
             734      been declared by any court of competent jurisdiction incompetent by reason of mental defect or
             735      disease and not been restored;
             736          (viii) document that none of the applicant's officers, directors, shareholders described
             737      in Subsection (3)[(k)](t)(ii)(B), partners, proprietors, and responsible management personnel
             738      are currently suffering from habitual drunkenness or from drug addiction or dependence;
             739          (ix) file and maintain with the division evidence of:
             740          (A) comprehensive general liability insurance in form and in amounts to be established


             741      by rule by the commission with the concurrence of the director;
             742          (B) workers' compensation insurance that covers employees of the applicant in
             743      accordance with applicable Utah law; and
             744          (C) registration as is required by applicable law with the:
             745          (I) Division of Corporations and Commercial Code;
             746          (II) Unemployment Insurance Division in the Department of Workforce Services, for
             747      purposes of Title 35A, Chapter 4, Employment Security Act;
             748          (III) State Tax Commission; and
             749          (IV) Internal Revenue Service; and
             750          (x) meet with the division and board.
             751          [(l)] (u) Each applicant for licensure as an alarm company agent shall:
             752          (i) submit an application in a form prescribed by the division accompanied by
             753      fingerprint cards;
             754          (ii) pay a fee determined by the department under Section 63J-1-303 ;
             755          (iii) be of good moral character in that the applicant has not been convicted of a felony,
             756      a misdemeanor involving moral turpitude, or any other crime that when considered with the
             757      duties and responsibilities of an alarm company agent is considered by the board to indicate
             758      that the best interests of the public are served by granting the applicant a license;
             759          (iv) not have been declared by any court of competent jurisdiction incompetent by
             760      reason of mental defect or disease and not been restored;
             761          (v) not be currently suffering from habitual drunkenness or from drug addiction or
             762      dependence; and
             763          (vi) meet with the division and board if requested by the division or the board.
             764          (4) (a) The apprentice ratio for determining compliance with the requirements for
             765      planned training programs and electrician or HVAC mechanical technician apprentice licensing
             766      applications shall be:
             767          (i) one journeyman or master electrician to one apprentice on industrial and
             768      commercial work;
             769          (ii) one journeyman or master electrician to three apprentices on a residential project;
             770          (iii) one journeyman or master HVAC mechanical technician to two apprentices on
             771      industrial and commercial work; and


             772          (iv) one journeyman or HVAC mechanical technician to three apprentices on a
             773      residential building.
             774          (b) On-the-job training shall be under circumstances in which the ratio of apprentices
             775      to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
             776      three apprentices to one supervisor on residential projects.
             777          [(4)] (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             778      Act, the division may make rules establishing when Federal Bureau of Investigation records
             779      shall be checked for applicants as an alarm company or alarm company agent.
             780          [(5)] (6) To determine if an applicant meets the qualifications of Subsections
             781      (3)[(k)](t)(vi) and (3)[(l)](u)(iii), the division shall provide an appropriate number of copies of
             782      fingerprint cards to the Department of Public Safety with the division's request to:
             783          (a) conduct a search of records of the Department of Public Safety for criminal history
             784      information relating to each applicant for licensure as an alarm company or alarm company
             785      agent and each applicant's officers, directors, shareholders described in Subsection
             786      (3)[(k)](t)(ii)(B), partners, proprietors, and responsible management personnel; and
             787          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
             788      requiring a check of records of the F.B.I. for criminal history information under this section.
             789          [(6)] (7) The Department of Public Safety shall send to the division:
             790          (a) a written record of criminal history, or certification of no criminal history record, as
             791      contained in the records of the Department of Public Safety in a timely manner after receipt of
             792      a fingerprint card from the division and a request for review of Department of Public Safety
             793      records; and
             794          (b) the results of the F.B.I. review concerning an applicant in a timely manner after
             795      receipt of information from the F.B.I.
             796          [(7)] (8) (a) The division shall charge each applicant for licensure as an alarm company
             797      or alarm company agent a fee, in accordance with Section 63J-1-303 , equal to the cost of
             798      performing the records reviews under this section.
             799          (b) The division shall pay the Department of Public Safety the costs of all records
             800      reviews, and the Department of Public Safety shall pay the F.B.I. the costs of records reviews
             801      under this section.
             802          [(8)] (9) Information obtained by the division from the reviews of criminal history


             803      records of the Department of Public Safety and the F.B.I. shall be used or disseminated by the
             804      division only for the purpose of determining if an applicant for licensure as an alarm company
             805      or alarm company agent is qualified for licensure.
             806          [(9)] (10) (a) An application for licensure under this chapter shall be denied if:
             807          (i) the applicant has had a previous license, which was issued under this chapter,
             808      suspended or revoked within one year prior to the date of the applicant's application;
             809          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             810          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             811      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             812      status, performing similar functions, or directly or indirectly controlling the applicant has
             813      served in any similar capacity with any person or entity which has had a previous license,
             814      which was issued under this chapter, suspended or revoked within one year prior to the date of
             815      the applicant's application; or
             816          (iii) (A) the applicant is an individual or sole proprietorship; and
             817          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             818      Subsection [(9)] (10)(a)(ii)(B) in any entity which has had a previous license, which was issued
             819      under this chapter, suspended or revoked within one year prior to the date of the applicant's
             820      application.
             821          (b) An application for licensure under this chapter shall be reviewed by the appropriate
             822      licensing board prior to approval if:
             823          (i) the applicant has had a previous license, which was issued under this chapter,
             824      suspended or revoked more than one year prior to the date of the applicant's application;
             825          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             826          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             827      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             828      status, performing similar functions, or directly or indirectly controlling the applicant has
             829      served in any similar capacity with any person or entity which has had a previous license,
             830      which was issued under this chapter, suspended or revoked more than one year prior to the date
             831      of the applicant's application; or
             832          (iii) (A) the applicant is an individual or sole proprietorship; and
             833          (B) any owner or agent acting as a qualifier has served in any capacity listed in


             834      Subsection [(9)] (10)(b)(ii)(B) in any entity which has had a previous license, which was issued
             835      under this chapter, suspended or revoked more than one year prior to the date of the applicant's
             836      application.
             837          Section 6. Section 58-55-305 is amended to read:
             838           58-55-305. Exemptions from licensure.
             839          (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
             840      persons may engage in acts or practices included within the practice of construction trades,
             841      subject to the stated circumstances and limitations, without being licensed under this chapter:
             842          (a) an authorized representative of the United States government or an authorized
             843      employee of the state or any of its political subdivisions when working on construction work of
             844      the state or the subdivision, and when acting within the terms of the person's trust, office, or
             845      employment;
             846          (b) a person engaged in construction or operation incidental to the construction and
             847      repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
             848      districts, and drainage districts or construction and repair relating to farming, dairying,
             849      agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
             850      excavations, well drilling, as defined in Section 73-3-25 , hauling to and from construction
             851      sites, and lumbering;
             852          (c) public utilities operating under the rules of the Public Service Commission on
             853      construction work incidental to their own business;
             854          (d) sole owners of property engaged in building:
             855          (i) no more than one residential structure per year and no more than three residential
             856      structures per five years on their property for their own noncommercial, nonpublic use; except,
             857      a person other than the property owner or individuals described in Subsection (1)(e), who
             858      engages in building the structure must be licensed under this chapter if the person is otherwise
             859      required to be licensed under this chapter; or
             860          (ii) structures on their property for their own noncommercial, nonpublic use which are
             861      incidental to a residential structure on the property, including sheds, carports, or detached
             862      garages;
             863          (e) (i) a person engaged in construction or renovation of a residential building for
             864      noncommercial, nonpublic use if that person:


             865          (A) works without compensation other than token compensation that is not considered
             866      salary or wages; and
             867          (B) works under the direction of the property owner who engages in building the
             868      structure; and
             869          (ii) as used in this Subsection (1)(e), "token compensation" means compensation paid
             870      by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
             871      exempted from licensure under this Subsection (1)(e), that is:
             872          (A) minimal in value when compared with the fair market value of the services
             873      provided by the person;
             874          (B) not related to the fair market value of the services provided by the person; and
             875          (C) is incidental to the providing of services by the person including paying for or
             876      providing meals or refreshment while services are being provided, or paying reasonable
             877      transportation costs incurred by the person in travel to the site of construction;
             878          (f) a person engaged in the sale or merchandising of personal property that by its design
             879      or manufacture may be attached, installed, or otherwise affixed to real property who has
             880      contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
             881      attach that property;
             882          (g) a contractor submitting a bid on a federal aid highway project, if, before
             883      undertaking construction under that bid, the contractor is licensed under this chapter;
             884          (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
             885      improvement of a building with a contracted or agreed value of less than $3,000, including
             886      both labor and materials, and including all changes or additions to the contracted or agreed
             887      upon work; and
             888          (ii) notwithstanding Subsection (1)(h)(i):
             889          (A) except as otherwise provided by this section, work in the plumbing [and],
             890      electrical, or HVAC trades on a project described in Subsection (1)(h)(i) [project] must be
             891      performed by:
             892          (I) a licensed journeyman [electrician or journeyman] plumber [except as otherwise
             893      provided in this section];
             894          (II) a licensed journeyman electrician; or
             895          (III) a licensed journeyman HVAC mechanical technician;


             896          (B) installation, repair, or replacement of a residential or commercial gas appliance or a
             897      combustion system on a Subsection (1)(h)(i) project must be performed by a person who has
             898      received certification under Subsection 58-55-308 (2) except as otherwise provided in
             899      Subsection 58-55-308 (2)(d) or 58-55-308 (3);
             900          (C) installation, repair, or replacement of water-based fire protection systems on a
             901      Subsection (1)(h)(i) project must be performed by a licensed fire suppression systems
             902      contractor or a licensed journeyman plumber;
             903          (D) work as an alarm business or company or as an alarm company agent shall be
             904      performed by a licensed alarm business or company or a licensed alarm company agent, except
             905      as otherwise provided in this chapter;
             906          (E) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i)
             907      project must be performed by a licensed alarm business or company or a licensed alarm
             908      company agent; and
             909          [(F) installation, repair, or replacement of a heating, ventilation, or air conditioning
             910      system (HVAC) on a Subsection (1)(h)(i) project must be performed by an HVAC contractor
             911      licensed by the division; and]
             912          [(G)] (F) if the total value of the project is greater than $1,000, the person shall file
             913      with the division a one-time affirmation, subject to periodic reaffirmation as established by
             914      division rule, that the person has:
             915          (I) public liability insurance in coverage amounts and form established by division
             916      rule; and
             917          (II) if applicable, workers compensation insurance which would cover an employee of
             918      the person if that employee worked on the construction project;
             919          (i) a person practicing a specialty contractor classification or construction trade which
             920      the director does not classify by administrative rule as significantly impacting the public's
             921      health, safety, and welfare;
             922          (j) owners and lessees of property and persons regularly employed for wages by owners
             923      or lessees of property or their agents for the purpose of maintaining the property, are exempt
             924      from this chapter when doing work upon the property;
             925          (k) (i) a person engaged in minor plumbing work incidental to the replacement or
             926      repair of a fixture or an appliance in a residential or small commercial building, or structure


             927      used for agricultural use, as defined in Section 58-56-4 , provided that no modification is made
             928      to:
             929          (A) existing culinary water, soil, waste, or vent piping; or
             930          (B) a gas appliance or combustion system; and
             931          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
             932      an appliance is not included in the exemption provided under Subsection (1)(k)(i);
             933          (l) a person who ordinarily would be subject to the plumber licensure requirements
             934      under this chapter when installing or repairing a water conditioner or other water treatment
             935      apparatus if the conditioner or apparatus:
             936          (i) meets the appropriate state construction codes or local plumbing standards; and
             937          (ii) is installed or repaired under the direction of a person authorized to do the work
             938      under an appropriate specialty contractor license;
             939          (m) a person who ordinarily would be subject to the electrician licensure requirements
             940      under this chapter when employed by:
             941          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
             942      contractors or constructors, or street railway systems; or
             943          (ii) public service corporations, rural electrification associations, or municipal utilities
             944      who generate, distribute, or sell electrical energy for light, heat, or power;
             945          (n) a person involved in minor electrical work incidental to a mechanical or service
             946      installation;
             947          (o) a student participating in construction trade education and training programs
             948      approved by the commission with the concurrence of the director under the condition that:
             949          (i) all work intended as a part of a finished product on which there would normally be
             950      an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
             951      building inspector; and
             952          (ii) a licensed contractor obtains the necessary building permits; and
             953          (p) a delivery person when replacing any of the following existing equipment with a
             954      new gas appliance, provided there is an existing gas shutoff valve at the appliance:
             955          (i) gas range;
             956          (ii) gas dryer;
             957          (iii) outdoor gas barbeque; or


             958          (iv) outdoor gas patio heater.
             959          (2) A compliance agency as defined in Subsection 58-56-3 (4) that issues a building
             960      permit to a person requesting a permit as a sole owner of property referred to in Subsection
             961      (1)(d) shall notify the division, in writing or through electronic transmission, of the issuance of
             962      the permit.
             963          Section 7. Section 58-55-501 is amended to read:
             964           58-55-501. Unlawful conduct.
             965          Unlawful conduct includes:
             966          (1) engaging in a construction trade, acting as a contractor, an alarm business or
             967      company, or an alarm company agent, or representing oneself to be engaged in a construction
             968      trade or to be acting as a contractor in a construction trade requiring licensure, unless the
             969      person doing any of these is appropriately licensed or exempted from licensure under this
             970      chapter;
             971          (2) acting in a construction trade, as an alarm business or company, or as an alarm
             972      company agent beyond the scope of the license held;
             973          (3) hiring or employing in any manner an unlicensed person, other than an employee
             974      for wages who is not required to be licensed under this chapter, to engage in a construction
             975      trade for which licensure is required or to act as a contractor or subcontractor in a construction
             976      trade requiring licensure;
             977          (4) applying for or obtaining a building permit either for oneself or another when not
             978      licensed or exempted from licensure as a contractor under this chapter;
             979          (5) issuing a building permit to any person for whom there is no evidence of a current
             980      license or exemption from licensure as a contractor under this chapter;
             981          (6) applying for or obtaining a building permit for the benefit of or on behalf of any
             982      other person who is required to be licensed under this chapter but who is not licensed or is
             983      otherwise not entitled to obtain or receive the benefit of the building permit;
             984          (7) failing to obtain a building permit when required by law or rule;
             985          (8) submitting a bid for any work for which a license is required under this chapter by a
             986      person not licensed or exempted from licensure as a contractor under this chapter;
             987          (9) willfully or deliberately misrepresenting or omitting a material fact in connection
             988      with an application to obtain or renew a license under this chapter;


             989          (10) allowing one's license to be used by another except as provided by statute or rule;
             990          (11) doing business under a name other than the name appearing on the license, except
             991      as permitted by statute or rule;
             992          (12) [if licensed as a specialty contractor in the electrical trade or plumbing trade,
             993      journeyman plumber, residential journeyman plumber, journeyman electrician, master
             994      electrician, or residential electrician, failing] failure by a licensed supervisor to directly
             995      supervise an apprentice under [one's] the supervisor's supervision or exceeding the number of
             996      apprentices [one] the supervisor is allowed to have under [his] the supervisor's supervision[;] if
             997      the supervisor is licensed as a:
             998          (a) specialty contractor in the electrical, mechanical, or plumbing trade;
             999          (b) master electrician;
             1000          (c) residential master electrician;
             1001          (d) journeyman electrician;
             1002          (e) residential journeyman electrician;
             1003          (f) master HVAC mechanical technician;
             1004          (g) residential master HVAC mechanical technician;
             1005          (h) journeyman HVAC mechanical technician;
             1006          (i) residential journeyman HVAC mechanical technician;
             1007          (j) journeyman plumber; or
             1008          (k) residential journeyman plumber;
             1009          (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
             1010      funds in payment for a specific project from an owner or any other person, which funds are to
             1011      pay for work performed or materials and services furnished for that specific project, and after
             1012      receiving the funds to exercise unauthorized control over the funds by failing to pay the full
             1013      amounts due and payable to persons who performed work or furnished materials or services
             1014      within a reasonable period of time;
             1015          (14) employing an unlicensed alarm business or company or an unlicensed individual
             1016      as an alarm company agent, except as permitted under the exemption from licensure provisions
             1017      under Section 58-1-307 ;
             1018          (15) if licensed as an alarm company or alarm company agent, filing with the division
             1019      fingerprint cards for an applicant which are not those of the applicant, or are in any other way


             1020      false or fraudulent and intended to mislead the division in its consideration of the applicant for
             1021      licensure;
             1022          (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
             1023          (a) the building or construction laws of this state or any political subdivision;
             1024          (b) the safety and labor laws applicable to a project;
             1025          (c) any provision of the health laws applicable to a project;
             1026          (d) the workers' compensation insurance laws of the state applicable to a project;
             1027          (e) the laws governing withholdings for employee state and federal income taxes,
             1028      unemployment taxes, FICA, or other required withholdings; or
             1029          (f) reporting, notification, and filing laws of this state or the federal government;
             1030          (17) aiding or abetting any person in evading the provisions of this chapter or rules
             1031      established under the authority of the division to govern this chapter;
             1032          (18) engaging in the construction trade or as a contractor for the construction of
             1033      residences of up to two units when not currently registered or exempt from registration as a
             1034      qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
             1035      Fund Act;
             1036          (19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
             1037      written contract the notification required in Section 38-11-108 ;
             1038          (20) wrongfully filing a mechanics' lien in violation of Section 38-1-25 ; [or]
             1039          (21) if licensed as a contractor, not completing a three-hour core education class and an
             1040      additional three hours of professional education approved by the division and the Construction
             1041      Services Commission within each two-year renewal cycle, beginning with the two-year renewal
             1042      cycle that starts July 1, 2005, and ends June 30, 2007 unless an exemption has been granted to
             1043      the licensee by the Construction Services Commission, with the concurrence of the division,
             1044      except that [this Subsection (21) is repealed effective July 1, 2010 and] its implementation is
             1045      subject to the division receiving adequate funding for its implementation through a legislative
             1046      appropriation; or
             1047          (22) if licensed as an HVAC mechanical technician, not completing two hours of
             1048      HVAC system fuel and electricity efficiency education:
             1049          (a) that is approved by the division and the HVAC Mechanical Technicians Licensing
             1050      Board; and


             1051          (b) within each two-year license renewal cycle, beginning with the two-year license
             1052      renewal cycle that starts July 1, 2009, and ends June 30, 2011.




Legislative Review Note
    as of 1-19-09 9:53 AM


Office of Legislative Research and General Counsel


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