H.B. 320 Enrolled

1

UTAH CONSTRUCTION TRADES LICENSING ACT -
2 ALARM COMPANIES AMENDMENTS
3 2010 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Christopher N. Herrod
6 Senate Sponsor: Curtis S. Bramble
7
8 LONG TITLE
9 General Description:
10 This bill modifies a provision of the Utah Construction Trades Licensing Act related to
11 alarm company employees.
12 Highlighted Provisions:
13 This bill:
14 . authorizes the issuance of a temporary license to certain alarm company employees;
15 . provides that certain behavior is unlawful conduct on the part of an alarm company
16 and agent; and
17 . makes technical changes.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 58-55-312, as renumbered and amended by Laws of Utah 2000, Chapter 317
25 58-55-501, as last amended by Laws of Utah 2008, Chapter 377
26 58-55-503, as last amended by Laws of Utah 2008, Chapter 382
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 58-55-312 is amended to read:

30 58-55-312. Interim and temporary permits for alarm company agents.
31 (1) Upon receipt of a complete application for licensure in accordance with Section
32 58-55-302 , an applicant for licensure as an alarm company agent may be issued:
33 (a) an interim permit[.]; or
34 (b) subject to Subsection (3), a temporary permit.
35 (2) (a) Each interim permit shall expire 90 days after it is issued or on the date on
36 which the applicant is issued a license, whichever is earlier.
37 (b) The division may reissue an interim permit if the delay in approving a license is
38 beyond the control or influence of the interim permit holder.
39 (3) (a) The division may issue a temporary permit to an applicant for a license as an
40 alarm company agent if:
41 (i) the division has received a background check on the applicant from the Bureau of
42 Criminal Identification;
43 (ii) (A) the applicant is or will be employed at a call center, office, or administrative
44 facility of an alarm company; and
45 (B) the applicant's only contact with a customer or potential customer of the alarm
46 company is:
47 (I) from the call center, office, or administrative facility; and
48 (II) by telephone or other remote communication method; and
49 (iii) the alarm company by which the applicant is or will be employed affirms in
50 writing to the division that the applicant, if issued a temporary license, will act only within the
51 scope of the temporary license, as provided in Subsection (3)(a)(ii).
52 (b) A temporary license under this section expires the earliest of:
53 (i) 90 days after it is issued;
54 (ii) the date on which the individual to whom the temporary license is issued leaves
55 the employment of the alarm company that employs the individual at the time the temporary
56 license is issued; and
57 (iii) the date on which the division issues a regular license to the applicant or denies

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

86 with an application to obtain or renew a license under this chapter;
87 (10) allowing one's license to be used by another except as provided by statute or rule;
88 (11) doing business under a name other than the name appearing on the license, except
89 as permitted by statute or rule;
90 (12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
91 journeyman plumber, residential journeyman plumber, journeyman electrician, master
92 electrician, or residential electrician, failing to directly supervise an apprentice under one's
93 supervision or exceeding the number of apprentices one is allowed to have under his
94 supervision;
95 (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
96 funds in payment for a specific project from an owner or any other person, which funds are to
97 pay for work performed or materials and services furnished for that specific project, and after
98 receiving the funds to exercise unauthorized control over the funds by failing to pay the full
99 amounts due and payable to persons who performed work or furnished materials or services
100 within a reasonable period of time;
101 (14) employing an unlicensed alarm business or company or an unlicensed individual
102 as an alarm company agent, except as permitted under the exemption from licensure
103 provisions under Section 58-1-307 ;
104 (15) if licensed as an alarm company or alarm company agent, filing with the division
105 fingerprint cards for an applicant which are not those of the applicant, or are in any other way
106 false or fraudulent and intended to mislead the division in its consideration of the applicant for
107 licensure;
108 (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
109 (a) the building or construction laws of this state or any political subdivision;
110 (b) the safety and labor laws applicable to a project;
111 (c) any provision of the health laws applicable to a project;
112 (d) the workers' compensation insurance laws of the state applicable to a project;
113 (e) the laws governing withholdings for employee state and federal income taxes,

114 unemployment taxes, FICA, or other required withholdings; or
115 (f) reporting, notification, and filing laws of this state or the federal government;
116 (17) aiding or abetting any person in evading the provisions of this chapter or rules
117 established under the authority of the division to govern this chapter;
118 (18) engaging in the construction trade or as a contractor for the construction of
119 residences of up to two units when not currently registered or exempt from registration as a
120 qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien
121 Recovery Fund Act;
122 (19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
123 written contract the notification required in Section 38-11-108 ;
124 (20) wrongfully filing a mechanics' lien in violation of Section 38-1-25 ; [or]
125 (21) if licensed as a contractor, not completing a three-hour core education class and
126 an additional three hours of professional education approved by the division and the
127 Construction Services Commission within each two-year renewal cycle, beginning with the
128 two-year renewal cycle that starts July 1, 2005, and ends June 30, 2007 unless an exemption
129 has been granted to the licensee by the Construction Services Commission, with the
130 concurrence of the division, except that this Subsection (21) is repealed effective July 1, 2010
131 and its implementation is subject to the division receiving adequate funding for its
132 implementation through a legislative appropriation[.];
133 (22) an alarm company allowing an employee with a temporary license under Section
134 58-55-312 to engage in conduct on behalf of the company outside the scope of the temporary
135 license, as provided in Subsection 58-55-312 (3)(a)(ii); and
136 (23) an alarm company agent under a temporary license under Section 58-55-312
137 engaging in conduct outside the scope of the temporary license, as provided in Subsection
138 58-55-312 (3)(a)(ii).
139 Section 3. Section 58-55-503 is amended to read:
140 58-55-503. Penalty for unlawful conduct -- Citations.
141 (1) (a) (i) A person who violates Subsection 58-55-308 (2), Subsection 58-55-501 (1),

142 (2), (3), (4), (5), (6), (7), (9), (10), (12), (14), [or] (15), (22), or (23), or Subsection
143 58-55-504 (2), or who fails to comply with a citation issued under this section after it is final,
144 is guilty of a class A misdemeanor.
145 (ii) As used in this section in reference to Subsection 58-55-504 (2), "person" means an
146 individual and does not include a sole proprietorship, joint venture, corporation, limited
147 liability company, association, or organization of any type.
148 (b) A person who violates the provisions of Subsection 58-55-501 (8) may not be
149 awarded and may not accept a contract for the performance of the work.
150 (2) A person who violates the provisions of Subsection 58-55-501 (13) is guilty of an
151 infraction unless the violator did so with the intent to deprive the person to whom money is to
152 be paid of the money received, in which case the violator is guilty of theft, as classified in
153 Section 76-6-412 .
154 (3) Grounds for immediate suspension of the licensee's license by the division and the
155 commission include the issuance of a citation for violation of Subsection 58-55-308 (2),
156 Section 58-55-501 , or Subsection 58-55-504 (2), or the failure by a licensee to make
157 application to, report to, or notify the division with respect to any matter for which
158 application, notification, or reporting is required under this chapter or rules adopted under this
159 chapter, including applying to the division for a new license to engage in a new specialty
160 classification or to do business under a new form of organization or business structure, filing
161 with the division current financial statements, notifying the division concerning loss of
162 insurance coverage, or change in qualifier.
163 (4) (a) If upon inspection or investigation, the division concludes that a person has
164 violated the provisions of Subsection 58-55-308 (2) or Subsections 58-55-501 (1), (2), (3), (9),
165 (10), (12), (14), (19), (21), (22), or (23), or Subsection 58-55-504 (2), or any rule or order
166 issued with respect to these subsections, and that disciplinary action is appropriate, the
167 director or the director's designee from within the division shall promptly issue a citation to
168 the person according to this chapter and any pertinent rules, attempt to negotiate a stipulated
169 settlement, or notify the person to appear before an adjudicative proceeding conducted under

170 Title 63G, Chapter 4, Administrative Procedures Act.
171 (i) A person who is in violation of the provisions of Subsection 58-55-308 (2),
172 Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19), [or] (21), (22), or (23), or
173 Subsection 58-55-504 (2), as evidenced by an uncontested citation, a stipulated settlement, or
174 by a finding of violation in an adjudicative proceeding, may be assessed a fine pursuant to this
175 Subsection (4) and may, in addition to or in lieu of, be ordered to cease and desist from
176 violating Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14),
177 (19), or (21), or Subsection 58-55-504 (2).
178 (ii) Except for a cease and desist order, the licensure sanctions cited in Section
179 58-55-401 may not be assessed through a citation.
180 (iii) (A) A person who receives a citation or is fined for violating Subsection
181 58-55-501 (21) may also be issued a cease and desist order from engaging in work to be
182 performed by a contractor licensed under this chapter unless the person meets the continuing
183 education requirement within 30 days after receipt of the citation or fine.
184 (B) The order, if issued, shall be removed upon the person's completion of the
185 continuing education requirement.
186 (C) This Subsection (4)(a)(iii) is repealed effective July 1, 2010.
187 (b) (i) Each citation shall be in writing and describe with particularity the nature of the
188 violation, including a reference to the provision of the chapter, rule, or order alleged to have
189 been violated.
190 (ii) The citation shall clearly state that the recipient must notify the division in writing
191 within 20 calendar days of service of the citation if the recipient wishes to contest the citation
192 at a hearing conducted under Title 63G, Chapter 4, Administrative Procedures Act.
193 (iii) The citation shall clearly explain the consequences of failure to timely contest the
194 citation or to make payment of any fines assessed by the citation within the time specified in
195 the citation.
196 (c) Each citation issued under this section, or a copy of each citation, may be served
197 upon a person upon whom a summons may be served:

198 (i) in accordance with the Utah Rules of Civil Procedure;
199 (ii) personally or upon the person's agent by a division investigator or by a person
200 specially designated by the director; or
201 (iii) by mail.
202 (d) (i) If within 20 calendar days from the service of a citation, the person to whom the
203 citation was issued fails to request a hearing to contest the citation, the citation becomes the
204 final order of the division and is not subject to further agency review.
205 (ii) The period to contest a citation may be extended by the division for cause.
206 (e) The division may refuse to issue or renew, suspend, revoke, or place on probation
207 the license of a licensee who fails to comply with a citation after it becomes final.
208 (f) The failure of an applicant for licensure to comply with a citation after it becomes
209 final is a ground for denial of license.
210 (g) No citation may be issued under this section after the expiration of six months
211 following the occurrence of any violation.
212 (h) Fines shall be assessed by the director or the director's designee according to the
213 following:
214 (i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
215 (ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000;
216 and
217 (iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to
218 $2,000 for each day of continued offense.
219 (i) (i) For purposes of issuing a final order under this section and assessing a fine
220 under Subsection (4)[(i)](h), an offense constitutes a second or subsequent offense if:
221 (A) the division previously issued a final order determining that a person committed a
222 first or second offense in violation of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2),
223 (3), (9), (10), (12), (14), or (19), or Subsection 58-55-504 (2); or
224 (B) (I) the division initiated an action for a first or second offense;
225 (II) no final order has been issued by the division in the action initiated under

226 Subsection (4)(i)(i)(B)(I);
227 (III) the division determines during an investigation that occurred after the initiation of
228 the action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent
229 violation of the provisions of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9),
230 (10), (12), (14), or (19), or Subsection 58-55-504 (2); and
231 (IV) after determining that the person committed a second or subsequent offense under
232 Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under
233 Subsection (4)(i)(i)(B)(I).
234 (ii) In issuing a final order for a second or subsequent offense under Subsection
235 (4)(i)(i), the division shall comply with the requirements of this section.
236 (5) (a) A penalty imposed by the director under Subsection (4)(h) shall be deposited
237 into the Commerce Service Fund.
238 (b) A penalty which is not paid may be collected by the director by either referring the
239 matter to a collection agency or bringing an action in the district court of the county in which
240 the person against whom the penalty is imposed resides or in the county where the office of the
241 director is located.
242 (c) A county attorney or the attorney general of the state is to provide legal assistance
243 and advice to the director in any action to collect the penalty.
244 (d) In an action brought to enforce the provisions of this section, reasonable attorney's
245 fees and costs shall be awarded.