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S.B. 163

             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 projects
             11      with a value of less than $3,000.
             12      Highlighted Provisions:
             13          This bill:
             14          .    provides that electrical and plumbing work done on a building project with a value
             15      of less than $3,000 must be done by a licensed electrical or plumbing contractor if
             16      the project involves an electrical or plumbing system; and
             17          .    provides that the electrical or plumbing work may be done by a licensed
             18      journeyman electrician or plumber if the project involves a single item such as a
             19      faucet, toilet, fixture, plug, or electrical switch.
             20      Monies Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          58-55-305, as last amended by Laws of Utah 2008, Chapters 282, 354, and 377
             27     


             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 58-55-305 is amended to read:
             30           58-55-305. Exemptions from licensure.
             31          (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
             32      persons may engage in acts or practices included within the practice of construction trades,
             33      subject to the stated circumstances and limitations, without being licensed under this chapter:
             34          (a) an authorized representative of the United States government or an authorized
             35      employee of the state or any of its political subdivisions when working on construction work of
             36      the state or the subdivision, and when acting within the terms of the person's trust, office, or
             37      employment;
             38          (b) a person engaged in construction or operation incidental to the construction and
             39      repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
             40      districts, and drainage districts or construction and repair relating to farming, dairying,
             41      agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
             42      excavations, well drilling, as defined in Section 73-3-25 , hauling to and from construction
             43      sites, and lumbering;
             44          (c) public utilities operating under the rules of the Public Service Commission on
             45      construction work incidental to their own business;
             46          (d) sole owners of property engaged in building:
             47          (i) no more than one residential structure per year and no more than three residential
             48      structures per five years on their property for their own noncommercial, nonpublic use; except,
             49      a person other than the property owner or individuals described in Subsection (1)(e), who
             50      engages in building the structure must be licensed under this chapter if the person is otherwise
             51      required to be licensed under this chapter; or
             52          (ii) structures on their property for their own noncommercial, nonpublic use which are
             53      incidental to a residential structure on the property, including sheds, carports, or detached
             54      garages;
             55          (e) (i) a person engaged in construction or renovation of a residential building for
             56      noncommercial, nonpublic use if that person:
             57          (A) works without compensation other than token compensation that is not considered
             58      salary or wages; and


             59          (B) works under the direction of the property owner who engages in building the
             60      structure; and
             61          (ii) as used in this Subsection (1)(e), "token compensation" means compensation paid
             62      by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
             63      exempted from licensure under this Subsection (1)(e), that is:
             64          (A) minimal in value when compared with the fair market value of the services
             65      provided by the person;
             66          (B) not related to the fair market value of the services provided by the person; and
             67          (C) is incidental to the providing of services by the person including paying for or
             68      providing meals or refreshment while services are being provided, or paying reasonable
             69      transportation costs incurred by the person in travel to the site of construction;
             70          (f) a person engaged in the sale or merchandising of personal property that by its design
             71      or manufacture may be attached, installed, or otherwise affixed to real property who has
             72      contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
             73      attach that property;
             74          (g) a contractor submitting a bid on a federal aid highway project, if, before
             75      undertaking construction under that bid, the contractor is licensed under this chapter;
             76          (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
             77      improvement of a building with a contracted or agreed value of less than $3,000, including
             78      both labor and materials, and including all changes or additions to the contracted or agreed
             79      upon work; and
             80          (ii) notwithstanding Subsection (1)(h)(i) and except as otherwise provided in this
             81      section:
             82          (A) work in the plumbing and electrical trades on a Subsection (1)(h)(i) project must
             83      be performed by [a licensed journeyman electrician or journeyman plumber except as
             84      otherwise provided in this section;]:
             85          (I) a licensed electrical or plumbing contractor, if the project involves an electrical or
             86      plumbing system; and
             87          (II) a licensed journeyman electrician or plumber, if the project involves a single item
             88      such as a faucet, toilet, fixture, plug, or electrical switch;
             89          (B) installation, repair, or replacement of a residential or commercial gas appliance or a


             90      combustion system on a Subsection (1)(h)(i) project must be performed by a person who has
             91      received certification under Subsection 58-55-308 (2) except as otherwise provided in
             92      Subsection 58-55-308 (2)(d) or 58-55-308 (3);
             93          (C) installation, repair, or replacement of water-based fire protection systems on a
             94      Subsection (1)(h)(i) project must be performed by a licensed fire suppression systems
             95      contractor or a licensed journeyman plumber;
             96          (D) work as an alarm business or company or as an alarm company agent shall be
             97      performed by a licensed alarm business or company or a licensed alarm company agent, except
             98      as otherwise provided in this chapter;
             99          (E) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i)
             100      project must be performed by a licensed alarm business or company or a licensed alarm
             101      company agent;
             102          (F) installation, repair, or replacement of a heating, ventilation, or air conditioning
             103      system (HVAC) on a Subsection (1)(h)(i) project must be performed by an HVAC contractor
             104      licensed by the division; and
             105          (G) if the total value of the project is greater than $1,000, the person shall file with the
             106      division a one-time affirmation, subject to periodic reaffirmation as established by division
             107      rule, that the person has:
             108          (I) public liability insurance in coverage amounts and form established by division
             109      rule; and
             110          (II) if applicable, workers compensation insurance which would cover an employee of
             111      the person if that employee worked on the construction project;
             112          (i) a person practicing a specialty contractor classification or construction trade which
             113      the director does not classify by administrative rule as significantly impacting the public's
             114      health, safety, and welfare;
             115          (j) owners and lessees of property and persons regularly employed for wages by owners
             116      or lessees of property or their agents for the purpose of maintaining the property, are exempt
             117      from this chapter when doing work upon the property;
             118          (k) (i) a person engaged in minor plumbing work incidental to the replacement or
             119      repair of a fixture or an appliance in a residential or small commercial building, or structure
             120      used for agricultural use, as defined in Section 58-56-4 , provided that no modification is made


             121      to:
             122          (A) existing culinary water, soil, waste, or vent piping; or
             123          (B) a gas appliance or combustion system; and
             124          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
             125      an appliance is not included in the exemption provided under Subsection (1)(k)(i);
             126          (l) a person who ordinarily would be subject to the plumber licensure requirements
             127      under this chapter when installing or repairing a water conditioner or other water treatment
             128      apparatus if the conditioner or apparatus:
             129          (i) meets the appropriate state construction codes or local plumbing standards; and
             130          (ii) is installed or repaired under the direction of a person authorized to do the work
             131      under an appropriate specialty contractor license;
             132          (m) a person who ordinarily would be subject to the electrician licensure requirements
             133      under this chapter when employed by:
             134          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
             135      contractors or constructors, or street railway systems; or
             136          (ii) public service corporations, rural electrification associations, or municipal utilities
             137      who generate, distribute, or sell electrical energy for light, heat, or power;
             138          (n) a person involved in minor electrical work incidental to a mechanical or service
             139      installation;
             140          (o) a student participating in construction trade education and training programs
             141      approved by the commission with the concurrence of the director under the condition that:
             142          (i) all work intended as a part of a finished product on which there would normally be
             143      an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
             144      building inspector; and
             145          (ii) a licensed contractor obtains the necessary building permits; and
             146          (p) a delivery person when replacing any of the following existing equipment with a
             147      new gas appliance, provided there is an existing gas shutoff valve at the appliance:
             148          (i) gas range;
             149          (ii) gas dryer;
             150          (iii) outdoor gas barbeque; or
             151          (iv) outdoor gas patio heater.


             152          (2) A compliance agency as defined in Subsection 58-56-3 (4) that issues a building
             153      permit to a person requesting a permit as a sole owner of property referred to in Subsection
             154      (1)(d) shall notify the division, in writing or through electronic transmission, of the issuance of
             155      the permit.




Legislative Review Note
    as of 2-3-09 9:03 AM


Office of Legislative Research and General Counsel


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