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S.B. 163 Enrolled

             1     

CONSTRUCTION TRADE EXEMPTION

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stephen H. Urquhart

             5     
House Sponsor: Keith Grover

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the exemptions from licensure provision of the Utah Construction
             10      Trades Licensing Act regarding electrical and plumbing work done on building
             11      projects with a value of less than $3,000.
             12      Highlighted Provisions:
             13          This bill:
             14          .    provides that electrical and plumbing work done within a six month period on a
             15      building project with a value of less than $3,000 must be done by a licensed
             16      electrical or plumbing contractor if the project involves an electrical or plumbing
             17      system; and
             18          .    provides that the electrical or plumbing work may be done by a licensed
             19      journeyman electrician or plumber if the project involves a component of an
             20      electrical or plumbing system such as a faucet, toilet, fixture, device, outlet, or
             21      electrical switch.
             22      Monies Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None
             26      Utah Code Sections Affected:
             27      AMENDS:
             28          58-55-305, as last amended by Laws of Utah 2008, Chapters 282, 354, and 377
             29     


             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 58-55-305 is amended to read:
             32           58-55-305. Exemptions from licensure.
             33          (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
             34      persons may engage in acts or practices included within the practice of construction trades,
             35      subject to the stated circumstances and limitations, without being licensed under this chapter:
             36          (a) an authorized representative of the United States government or an authorized
             37      employee of the state or any of its political subdivisions when working on construction work
             38      of the state or the subdivision, and when acting within the terms of the person's trust, office, or
             39      employment;
             40          (b) a person engaged in construction or operation incidental to the construction and
             41      repair of irrigation and drainage ditches of regularly constituted irrigation districts,
             42      reclamation districts, and drainage districts or construction and repair relating to farming,
             43      dairying, agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and
             44      gravel excavations, well drilling, as defined in Section 73-3-25 , hauling to and from
             45      construction sites, and lumbering;
             46          (c) public utilities operating under the rules of the Public Service Commission on
             47      construction work incidental to their own business;
             48          (d) sole owners of property engaged in building:
             49          (i) no more than one residential structure per year and no more than three residential
             50      structures per five years on their property for their own noncommercial, nonpublic use; except,
             51      a person other than the property owner or individuals described in Subsection (1)(e), who
             52      engages in building the structure must be licensed under this chapter if the person is otherwise
             53      required to be licensed under this chapter; or
             54          (ii) structures on their property for their own noncommercial, nonpublic use which are
             55      incidental to a residential structure on the property, including sheds, carports, or detached
             56      garages;
             57          (e) (i) a person engaged in construction or renovation of a residential building for


             58      noncommercial, nonpublic use if that person:
             59          (A) works without compensation other than token compensation that is not considered
             60      salary or wages; and
             61          (B) works under the direction of the property owner who engages in building the
             62      structure; and
             63          (ii) as used in this Subsection (1)(e), "token compensation" means compensation paid
             64      by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
             65      exempted from licensure under this Subsection (1)(e), that is:
             66          (A) minimal in value when compared with the fair market value of the services
             67      provided by the person;
             68          (B) not related to the fair market value of the services provided by the person; and
             69          (C) is incidental to the providing of services by the person including paying for or
             70      providing meals or refreshment while services are being provided, or paying reasonable
             71      transportation costs incurred by the person in travel to the site of construction;
             72          (f) a person engaged in the sale or merchandising of personal property that by its
             73      design or manufacture may be attached, installed, or otherwise affixed to real property who
             74      has contracted with a person, firm, or corporation licensed under this chapter to install, affix,
             75      or attach that property;
             76          (g) a contractor submitting a bid on a federal aid highway project, if, before
             77      undertaking construction under that bid, the contractor is licensed under this chapter;
             78          (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
             79      improvement of a building with a contracted or agreed value of less than $3,000, including
             80      both labor and materials, and including all changes or additions to the contracted or agreed
             81      upon work; and
             82          (ii) notwithstanding Subsection (1)(h)(i) and except as otherwise provided in this
             83      section:
             84          (A) work in the plumbing and electrical trades on a Subsection (1)(h)(i) project within
             85      any six month period of time:


             86          (I) must be performed by [a licensed journeyman electrician or journeyman plumber
             87      except as otherwise provided in this section;] a licensed electrical or plumbing contractor, if
             88      the project involves an electrical or plumbing system; and
             89          (II) may be performed by a licensed journeyman electrician or plumber or an
             90      individual referred to in Subsection (1)(h)(ii)(A)(I), if the project involves a component of the
             91      system such as a faucet, toilet, fixture, device, outlet, or electrical switch;
             92          (B) installation, repair, or replacement of a residential or commercial gas appliance or
             93      a combustion system on a Subsection (1)(h)(i) project must be performed by a person who has
             94      received certification under Subsection 58-55-308 (2) except as otherwise provided in
             95      Subsection 58-55-308 (2)(d) or 58-55-308 (3);
             96          (C) installation, repair, or replacement of water-based fire protection systems on a
             97      Subsection (1)(h)(i) project must be performed by a licensed fire suppression systems
             98      contractor or a licensed journeyman plumber;
             99          (D) work as an alarm business or company or as an alarm company agent shall be
             100      performed by a licensed alarm business or company or a licensed alarm company agent, except
             101      as otherwise provided in this chapter;
             102          (E) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i)
             103      project must be performed by a licensed alarm business or company or a licensed alarm
             104      company agent;
             105          (F) installation, repair, or replacement of a heating, ventilation, or air conditioning
             106      system (HVAC) on a Subsection (1)(h)(i) project must be performed by an HVAC contractor
             107      licensed by the division; [and]
             108          (G) installation, repair, or replacement of a radon mitigation system or a soil
             109      depressurization system must be performed by a licensed contractor; and
             110          [(G)] (H) if the total value of the project is greater than $1,000, the person shall file
             111      with the division a one-time affirmation, subject to periodic reaffirmation as established by
             112      division rule, that the person has:
             113          (I) public liability insurance in coverage amounts and form established by division


             114      rule; and
             115          (II) if applicable, workers compensation insurance which would cover an employee of
             116      the person if that employee worked on the construction project;
             117          (i) a person practicing a specialty contractor classification or construction trade which
             118      the director does not classify by administrative rule as significantly impacting the public's
             119      health, safety, and welfare;
             120          (j) owners and lessees of property and persons regularly employed for wages by
             121      owners or lessees of property or their agents for the purpose of maintaining the property, are
             122      exempt from this chapter when doing work upon the property;
             123          (k) (i) a person engaged in minor plumbing work incidental to the replacement or
             124      repair of a fixture or an appliance in a residential or small commercial building, or structure
             125      used for agricultural use, as defined in Section 58-56-4 , provided that no modification is made
             126      to:
             127          (A) existing culinary water, soil, waste, or vent piping; or
             128          (B) a gas appliance or combustion system; and
             129          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
             130      an appliance is not included in the exemption provided under Subsection (1)(k)(i);
             131          (l) a person who ordinarily would be subject to the plumber licensure requirements
             132      under this chapter when installing or repairing a water conditioner or other water treatment
             133      apparatus if the conditioner or apparatus:
             134          (i) meets the appropriate state construction codes or local plumbing standards; and
             135          (ii) is installed or repaired under the direction of a person authorized to do the work
             136      under an appropriate specialty contractor license;
             137          (m) a person who ordinarily would be subject to the electrician licensure requirements
             138      under this chapter when employed by:
             139          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
             140      contractors or constructors, or street railway systems; or
             141          (ii) public service corporations, rural electrification associations, or municipal utilities


             142      who generate, distribute, or sell electrical energy for light, heat, or power;
             143          (n) a person involved in minor electrical work incidental to a mechanical or service
             144      installation;
             145          (o) a student participating in construction trade education and training programs
             146      approved by the commission with the concurrence of the director under the condition that:
             147          (i) all work intended as a part of a finished product on which there would normally be
             148      an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
             149      building inspector; and
             150          (ii) a licensed contractor obtains the necessary building permits; and
             151          (p) a delivery person when replacing any of the following existing equipment with a
             152      new gas appliance, provided there is an existing gas shutoff valve at the appliance:
             153          (i) gas range;
             154          (ii) gas dryer;
             155          (iii) outdoor gas barbeque; or
             156          (iv) outdoor gas patio heater.
             157          (2) A compliance agency as defined in Subsection 58-56-3 (4) that issues a building
             158      permit to a person requesting a permit as a sole owner of property referred to in Subsection
             159      (1)(d) shall notify the division, in writing or through electronic transmission, of the issuance of
             160      the permit.


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