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First Substitute H.B. 249

Representative James A. Dunnigan proposes the following substitute bill:


             1     
CONTINUING EDUCATION FOR

             2     
CONTRACTORS AMENDMENTS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Ron Bigelow

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill repeals certain continuing education requirements and penalties for licensed
             11      contractors.
             12      Highlighted Provisions:
             13          This bill:
             14          .    repeals certain core education requirements for a licensed contractor; and
             15          .    repeals the cease and desist penalty for a licensed contractor who does not complete
             16      the core education or professional education requirements.
             17      Monies Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          58-55-402, as last amended by Laws of Utah 2000, Chapters 233 and 317
             24          58-55-501, as last amended by Laws of Utah 2008, Chapter 377
             25     


             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 58-55-402 is amended to read:
             28           58-55-402. Investigation of regulated activity.
             29          (1) The division shall be responsible for the investigation of persons and activities in
             30      violation of the provisions of this chapter.
             31          (2) Investigation by the division shall include investigations of:
             32          (a) licensees engaged in unlawful or unprofessional conduct; and
             33          (b) unlicensed persons engaged in the conduct of activity or work regulated under this
             34      chapter and for which a license is required.
             35          (3) The division shall decline to proceed with investigation of the violation of any
             36      provisions of this chapter if the division finds there is no apparent material jeopardy to the
             37      public health, safety, and welfare.
             38          (4) The division shall have no responsibility for the inspection of construction work
             39      performed in the state to determine compliance with applicable codes, or industry and
             40      workmanship standards, except as provided in Subsections 58-1-501 (2)(g), 58-55-502 (2), (3),
             41      and (4), and 58-55-501 (16).
             42          (5) Authorized representatives of the division shall be permitted to enter upon the
             43      premises or site of work regulated under this chapter for the purpose of determining
             44      compliance with the provisions of this chapter.
             45          (6) (a) The division may:
             46          (i) contract with a construction trade association to approve all continuing education
             47      courses; and
             48          (ii) authorize the construction trade association to conduct audits of continuing
             49      education compliance.
             50          (b) A construction trade association described in Subsection (6)(a) shall:
             51          (i) be either a national association or a statewide association with a presence in Utah
             52      for more than 20 years;
             53          (ii) have at least 1,500 Utah members; and
             54          (iii) have or provide for membership for all of the constructor licensees in Utah.
             55          (c) The construction trade association shall report its findings under Subsection (6)(a)
             56      to the division.


             57          (d) This section does not authorize the construction trade association under Subsection
             58      (6)(a) to take enforcement action against a licensee.
             59          Section 2. Section 58-55-501 is amended to read:
             60           58-55-501. Unlawful conduct.
             61          Unlawful conduct includes:
             62          (1) engaging in a construction trade, acting as a contractor, an alarm business or
             63      company, or an alarm company agent, or representing oneself to be engaged in a construction
             64      trade or to be acting as a contractor in a construction trade requiring licensure, unless the
             65      person doing any of these is appropriately licensed or exempted from licensure under this
             66      chapter;
             67          (2) acting in a construction trade, as an alarm business or company, or as an alarm
             68      company agent beyond the scope of the license held;
             69          (3) hiring or employing in any manner an unlicensed person, other than an employee
             70      for wages who is not required to be licensed under this chapter, to engage in a construction
             71      trade for which licensure is required or to act as a contractor or subcontractor in a construction
             72      trade requiring licensure;
             73          (4) applying for or obtaining a building permit either for oneself or another when not
             74      licensed or exempted from licensure as a contractor under this chapter;
             75          (5) issuing a building permit to any person for whom there is no evidence of a current
             76      license or exemption from licensure as a contractor under this chapter;
             77          (6) applying for or obtaining a building permit for the benefit of or on behalf of any
             78      other person who is required to be licensed under this chapter but who is not licensed or is
             79      otherwise not entitled to obtain or receive the benefit of the building permit;
             80          (7) failing to obtain a building permit when required by law or rule;
             81          (8) submitting a bid for any work for which a license is required under this chapter by a
             82      person not licensed or exempted from licensure as a contractor under this chapter;
             83          (9) willfully or deliberately misrepresenting or omitting a material fact in connection
             84      with an application to obtain or renew a license under this chapter;
             85          (10) allowing one's license to be used by another except as provided by statute or rule;
             86          (11) doing business under a name other than the name appearing on the license, except
             87      as permitted by statute or rule;


             88          (12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
             89      journeyman plumber, residential journeyman plumber, journeyman electrician, master
             90      electrician, or residential electrician, failing to directly supervise an apprentice under one's
             91      supervision or exceeding the number of apprentices one is allowed to have under his
             92      supervision;
             93          (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
             94      funds in payment for a specific project from an owner or any other person, which funds are to
             95      pay for work performed or materials and services furnished for that specific project, and after
             96      receiving the funds to exercise unauthorized control over the funds by failing to pay the full
             97      amounts due and payable to persons who performed work or furnished materials or services
             98      within a reasonable period of time;
             99          (14) employing an unlicensed alarm business or company or an unlicensed individual
             100      as an alarm company agent, except as permitted under the exemption from licensure provisions
             101      under Section 58-1-307 ;
             102          (15) if licensed as an alarm company or alarm company agent, filing with the division
             103      fingerprint cards for an applicant which are not those of the applicant, or are in any other way
             104      false or fraudulent and intended to mislead the division in its consideration of the applicant for
             105      licensure;
             106          (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
             107          (a) the building or construction laws of this state or any political subdivision;
             108          (b) the safety and labor laws applicable to a project;
             109          (c) any provision of the health laws applicable to a project;
             110          (d) the workers' compensation insurance laws of the state applicable to a project;
             111          (e) the laws governing withholdings for employee state and federal income taxes,
             112      unemployment taxes, FICA, or other required withholdings; or
             113          (f) reporting, notification, and filing laws of this state or the federal government;
             114          (17) aiding or abetting any person in evading the provisions of this chapter or rules
             115      established under the authority of the division to govern this chapter;
             116          (18) engaging in the construction trade or as a contractor for the construction of
             117      residences of up to two units when not currently registered or exempt from registration as a
             118      qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery


             119      Fund Act;
             120          (19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
             121      written contract the notification required in Section 38-11-108 ;
             122          (20) wrongfully filing a mechanics' lien in violation of Section 38-1-25 ; or
             123          (21) if licensed as a contractor, not completing a three-hour core education class and an
             124      additional three hours of professional education approved by the division and the Construction
             125      Services Commission or the division's designee within each two-year renewal cycle, [beginning
             126      with the two-year renewal cycle that starts July 1, 2005, and ends June 30, 2007] unless an
             127      exemption has been granted to the licensee by the Construction Services Commission, with the
             128      concurrence of the division[, except that this Subsection (21) is repealed effective July 1, 2010
             129      and its implementation is subject to the division receiving adequate funding for its
             130      implementation through a legislative appropriation].


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