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H.B. 73

             1     

UTAH CONSTRUCTION TRADES CONTINUING

             2     
EDUCATION AMENDMENTS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Michael T. Morley

             6     
Senate Sponsor: J. Stuart Adams

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies provisions of the Utah Construction Trades Licensing Act related to
             11      continuing education.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines "approved continuing education;"
             15          .    requires a contractor licensee to complete six hours of approved continuing
             16      education during a two-year licensing cycle;
             17          .    requires the commission, with the concurrence of the division, to establish a
             18      program of approved continuing education for contractor licensees;
             19          .    authorizes the Division of Occupational and Professional Licensing to charge a
             20      reasonable fee to administer the continuing education program; and
             21          .    modifies a provision relating to what constitutes unlawful conduct under the Utah
             22      Construction Trades Licensing Act.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:


             28      AMENDS:
             29          58-55-102, as last amended by Laws of Utah 2008, Chapter 215
             30          58-55-303, as last amended by Laws of Utah 2001, Chapter 198
             31          58-55-501, as last amended by Laws of Utah 2008, Chapter 377
             32      ENACTS:
             33          58-55-302.5, Utah Code Annotated 1953
             34     
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 58-55-102 is amended to read:
             37           58-55-102. Definitions.
             38          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             39          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
             40      maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
             41      except as provided in Subsection (1)(b).
             42          (b) "Alarm business or company" does not include:
             43          (i) a person engaged in the manufacture and sale of alarm systems when that person is
             44      not engaged in the installation, maintenance, alteration, repair, replacement, servicing, or
             45      monitoring of alarm systems, and the manufacture or sale occurs only at a place of business
             46      established by the person engaged in the manufacture or sale and does not involve site visits at
             47      the place or intended place of installation of an alarm system; or
             48          (ii) an owner of an alarm system, or an employee of the owner of an alarm system who
             49      is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
             50      of the alarm system owned by that owner.
             51          (2) "Alarm company agent" means any individual employed within this state by a
             52      person engaged in the alarm business.
             53          (3) "Alarm system" means equipment and devices assembled for the purpose of:
             54          (a) detecting and signaling unauthorized intrusion or entry into or onto certain
             55      premises; or
             56          (b) signaling a robbery or attempted robbery on protected premises.
             57          (4) "Apprentice electrician" means a person licensed under this chapter as an
             58      apprentice electrician who is learning the electrical trade under approved supervision of a


             59      master electrician, residential master electrician, a journeyman electrician, or a residential
             60      journeyman electrician.
             61          (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
             62      plumber who is learning the plumbing trade under approved supervision of a master plumber,
             63      residential master plumber, journeyman plumber, or a residential journeyman plumber.
             64          (6) "Approved continuing education" means instruction provided through courses
             65      under a program established under Subsection 58-55-302.5 (2).
             66          [(6)] (7) "Approved supervision" means the immediate supervision of apprentices by
             67      qualified licensed electricians or plumbers as a part of a planned program of training.
             68          [(7)] (8) "Board" means the Electrician Licensing Board, Alarm System Security and
             69      Licensing Board, or Plumbers Licensing Board created in Section 58-55-201 .
             70          [(8)] (9) "Combustion system" means an assembly consisting of:
             71          (a) piping and components with a means for conveying, either continuously or
             72      intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
             73      appliance;
             74          (b) the electric control and combustion air supply and venting systems, including air
             75      ducts; and
             76          (c) components intended to achieve control of quantity, flow, and pressure.
             77          [(9)] (10) "Commission" means the Construction Services Commission created under
             78      Section 58-55-103 .
             79          [(10)] (11) "Construction trade" means any trade or occupation involving:
             80          (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition
             81      to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
             82      or other project, development, or improvement to other than personal property; and
             83          (ii) constructing, remodeling, or repairing a manufactured home or mobile home as
             84      defined in Section 58-56-3 ; or
             85          (b) installation or repair of a residential or commercial natural gas appliance or
             86      combustion system.
             87          [(11)] (12) "Construction trades instructor" means a person licensed under this chapter
             88      to teach one or more construction trades in both a classroom and project environment, where a
             89      project is intended for sale to or use by the public and is completed under the direction of the


             90      instructor, who has no economic interest in the project.
             91          [(12)] (13) (a) "Contractor" means any person who for compensation other than wages
             92      as an employee undertakes any work in the construction, plumbing, or electrical trade for
             93      which licensure is required under this chapter and includes:
             94          (i) a person who builds any structure on his own property for the purpose of sale or
             95      who builds any structure intended for public use on his own property;
             96          (ii) any person who represents himself to be a contractor by advertising or any other
             97      means;
             98          (iii) any person engaged as a maintenance person, other than an employee, who
             99      regularly engages in activities set forth under the definition of "construction trade";
             100          (iv) any person engaged in any construction trade for which licensure is required under
             101      this chapter; or
             102          (v) a construction manager who performs management and counseling services on a
             103      construction project for a fee.
             104          (b) "Contractor" does not include an alarm company or alarm company agent.
             105          [(13)] (14) (a) "Electrical trade" means the performance of any electrical work involved
             106      in the installation, construction, alteration, change, repair, removal, or maintenance of facilities,
             107      buildings, or appendages or appurtenances.
             108          (b) "Electrical trade" does not include:
             109          (i) transporting or handling electrical materials;
             110          (ii) preparing clearance for raceways for wiring; or
             111          (iii) work commonly done by unskilled labor on any installations under the exclusive
             112      control of electrical utilities.
             113          (c) For purposes of Subsection [(13)] (14)(b):
             114          (i) no more than one unlicensed person may be so employed unless more than five
             115      licensed electricians are employed by the shop; and
             116          (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio
             117      permitted by this Subsection [(13)] (14)(c).
             118          [(14)] (15) "Employee" means an individual as defined by the division by rule giving
             119      consideration to the definition adopted by the Internal Revenue Service and the Department of
             120      Workforce Services.


             121          [(15)] (16) "Engage in a construction trade" means to:
             122          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
             123      in a construction trade; or
             124          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
             125      to believe one is or will act as a contractor.
             126          [(16)] (17) (a) "Financial responsibility" means a demonstration of a current and
             127      expected future condition of financial solvency evidencing a reasonable expectation to the
             128      division and the board that an applicant or licensee can successfully engage in business as a
             129      contractor without jeopardy to the public health, safety, and welfare.
             130          (b) Financial responsibility may be determined by an evaluation of the total history
             131      concerning the licensee or applicant including past, present, and expected condition and record
             132      of financial solvency and business conduct.
             133          [(17)] (18) "Gas appliance" means any device that uses natural gas to produce light,
             134      heat, power, steam, hot water, refrigeration, or air conditioning.
             135          [(18)] (19) (a) "General building contractor" means a person licensed under this
             136      chapter as a general building contractor qualified by education, training, experience, and
             137      knowledge to perform or superintend construction of structures for the support, shelter, and
             138      enclosure of persons, animals, chattels, or movable property of any kind or any of the
             139      components of that construction except plumbing, electrical work, mechanical work, and
             140      manufactured housing installation, for which the general building contractor shall employ the
             141      services of a contractor licensed in the particular specialty, except that a general building
             142      contractor engaged in the construction of single-family and multifamily residences up to four
             143      units may perform the mechanical work and hire a licensed plumber or electrician as an
             144      employee.
             145          (b) The division may by rule exclude general building contractors from engaging in the
             146      performance of other construction specialties in which there is represented a substantial risk to
             147      the public health, safety, and welfare, and for which a license is required unless that general
             148      building contractor holds a valid license in that specialty classification.
             149          [(19)] (20) (a) "General engineering contractor" means a person licensed under this
             150      chapter as a general engineering contractor qualified by education, training, experience, and
             151      knowledge to perform construction of fixed works in any of the following: irrigation, drainage,


             152      water, power, water supply, flood control, inland waterways, harbors, railroads, highways,
             153      tunnels, airports and runways, sewers and bridges, refineries, pipelines, chemical and industrial
             154      plants requiring specialized engineering knowledge and skill, piers, and foundations, or any of
             155      the components of those works.
             156          (b) A general engineering contractor may not perform construction of structures built
             157      primarily for the support, shelter, and enclosure of persons, animals, and chattels.
             158          [(20)] (21) "Immediate supervision" means reasonable direction, oversight, inspection,
             159      and evaluation of the work of a person, in or out of the immediate presence of the supervising
             160      person, so as to ensure that the end result complies with applicable standards.
             161          [(21)] (22) "Individual" means a natural person.
             162          [(22)] (23) "Journeyman electrician" means a person licensed under this chapter as a
             163      journeyman electrician having the qualifications, training, experience, and knowledge to wire,
             164      install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
             165          [(23)] (24) "Journeyman plumber" means a person licensed under this chapter as a
             166      journeyman plumber having the qualifications, training, experience, and technical knowledge
             167      to engage in the plumbing trade.
             168          [(24)] (25) "Master electrician" means a person licensed under this chapter as a master
             169      electrician having the qualifications, training, experience, and knowledge to properly plan,
             170      layout, and supervise the wiring, installation, and repair of electrical apparatus and equipment
             171      for light, heat, power, and other purposes.
             172          [(25)] (26) "Master plumber" means a person licensed under this chapter as a master
             173      plumber having the qualifications, training, experience, and knowledge to properly plan and
             174      layout projects and supervise persons in the plumbing trade.
             175          [(26)] (27) "Person" means a natural person, sole proprietorship, joint venture,
             176      corporation, limited liability company, association, or organization of any type.
             177          [(27)] (28) (a) "Plumbing trade" means the performance of any mechanical work
             178      pertaining to the installation, alteration, change, repair, removal, maintenance, or use in
             179      buildings, or within three feet beyond the outside walls of buildings of pipes, fixtures, and
             180      fittings for:
             181          (i) delivery of the water supply;
             182          (ii) discharge of liquid and water carried waste; or


             183          (iii) the building drainage system within the walls of the building.
             184          (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
             185      fixtures and fixture traps, soil, waste and vent pipes, and the building drain and roof drains
             186      together with their devices, appurtenances, and connections where installed within the outside
             187      walls of the building.
             188          [(28)] (29) (a) "Ratio of apprentices" means, for the purpose of determining
             189      compliance with the requirements for planned programs of training and electrician apprentice
             190      licensing applications, the shop ratio of apprentice electricians to journeyman or master
             191      electricians shall be one journeyman or master electrician to one apprentice on industrial and
             192      commercial work, and one journeyman or master electrician to three apprentices on residential
             193      work.
             194          (b) On-the-job training shall be under circumstances in which the ratio of apprentices
             195      to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
             196      three apprentices to one supervisor on residential projects.
             197          [(29)] (30) "Residential and small commercial contractor" means a person licensed
             198      under this chapter as a residential and small commercial contractor qualified by education,
             199      training, experience, and knowledge to perform or superintend the construction of
             200      single-family residences, multifamily residences up to four units, and commercial construction
             201      of not more than three stories above ground and not more than 20,000 square feet, or any of the
             202      components of that construction except plumbing, electrical work, mechanical work, and
             203      manufactured housing installation, for which the residential and small commercial contractor
             204      shall employ the services of a contractor licensed in the particular specialty, except that a
             205      residential and small commercial contractor engaged in the construction of single-family and
             206      multifamily residences up to four units may perform the mechanical work and hire a licensed
             207      plumber or electrician as an employee.
             208          [(30)] (31) "Residential building," as it relates to the license classification of residential
             209      journeyman plumber and residential master plumber, means a single or multiple family
             210      dwelling of up to four units.
             211          [(31)] (32) "Residential journeyman electrician" means a person licensed under this
             212      chapter as a residential journeyman electrician having the qualifications, training, experience,
             213      and knowledge to wire, install, and repair electrical apparatus and equipment for light, heat,


             214      power, and other purposes on buildings using primarily nonmetallic sheath cable.
             215          [(32)] (33) "Residential journeyman plumber" means a person licensed under this
             216      chapter as a residential journeyman plumber having the qualifications, training, experience, and
             217      knowledge to engage in the plumbing trade as limited to the plumbing of residential buildings.
             218          [(33)] (34) "Residential master electrician" means a person licensed under this chapter
             219      as a residential master electrician having the qualifications, training, experience, and
             220      knowledge to properly plan, layout, and supervise the wiring, installation, and repair of
             221      electrical apparatus and equipment for light, heat, power, and other purposes on residential
             222      projects.
             223          [(34)] (35) "Residential master plumber" means a person licensed under this chapter as
             224      a residential master plumber having the qualifications, training, experience, and knowledge to
             225      properly plan and layout projects and supervise persons in the plumbing trade as limited to the
             226      plumbing of residential buildings.
             227          [(35)] (36) "Residential project," as it relates to an electrician or electrical contractor,
             228      means buildings primarily wired with nonmetallic sheathed cable, in accordance with standard
             229      rules and regulations governing this work, including the National Electrical Code, and in which
             230      the voltage does not exceed 250 volts line to line and 125 volts to ground.
             231          [(36)] (37) (a) "Specialty contractor" means a person licensed under this chapter under
             232      a specialty contractor classification established by rule, who is qualified by education, training,
             233      experience, and knowledge to perform those construction trades and crafts requiring
             234      specialized skill, the regulation of which are determined by the division to be in the best
             235      interest of the public health, safety, and welfare.
             236          (b) A specialty contractor may perform work in crafts or trades other than those in
             237      which he is licensed if they are incidental to the performance of his licensed craft or trade.
             238          [(37)] (38) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
             239          [(38)] (39) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-55-502
             240      and as may be further defined by rule.
             241          [(39)] (40) "Wages" means amounts due to an employee for labor or services whether
             242      the amount is fixed or ascertained on a time, task, piece, commission, or other basis for
             243      calculating the amount.
             244          Section 2. Section 58-55-302.5 is enacted to read:


             245          58-55-302.5. Continuing education requirements of contractor licensees --
             246      Continuing education courses.
             247          (1) Each contractor licensee under a license issued under this chapter shall complete
             248      six hours of approved continuing education during each two-year renewal cycle established by
             249      rule under Subsection 58-55-303 (1).
             250          (2) The commission shall, with the concurrence of the division, establish by rule a
             251      program of approved continuing education for contractor licensees.
             252          (3) The division may contract with a person to establish and maintain a continuing
             253      education registry to include:
             254          (a) an online application for a continuing education course provider to apply to the
             255      division for approval of the course for inclusion in the program of approved continuing
             256      education;
             257          (b) a list of courses that the division has approved for inclusion in the program of
             258      approved continuing education; and
             259          (c) a list of courses that:
             260          (i) a contractor licensee has completed under the program of approved continuing
             261      education; and
             262          (ii) the licensee may access to monitor the licensee's compliance with the continuing
             263      education requirement established under Subsection (1).
             264          (4) The division may charge a reasonable fee to administer the requirements of this
             265      section.
             266          Section 3. Section 58-55-303 is amended to read:
             267           58-55-303. Term of license -- Expiration -- Renewal.
             268          (1) Each license issued under this chapter shall be issued in accordance with a two-year
             269      renewal cycle established by rule. The division may by rule extend or shorten a renewal period
             270      by as much as one year to stagger the renewal cycle it administers.
             271          (2) At the time of renewal, the contractor licensee shall show satisfactory evidence of:
             272          (a) continuing financial responsibility as required under Section 58-55-306 [.]; and
             273          (b) completion of six hours of approved continuing education, as required in Section
             274      58-55-302.5 .
             275          (3) Each license automatically expires on the expiration date shown on the license


             276      unless the licensee renews the license in accordance with Section 58-1-308 .
             277          (4) The requirements of Subsection 58-55-302 (9) shall also apply to applicants seeking
             278      to renew or reinstate a license.
             279          (5) In addition to any other requirements imposed by law, if a license has been
             280      suspended or revoked for any reason, the applicant must pay in full all fines imposed by the
             281      division, resolve any outstanding citations or disciplinary actions with the division, satisfy any
             282      Section 58-55-503 judgment and sentence or nontrial resolution, complete a new financial
             283      responsibility review as required under Section 58-55-306 , using only titled assets, and pay in
             284      full any reimbursement amount as provided in Title 38, Chapter 11, Residence Lien Restriction
             285      and Lien Recovery Fund Act.
             286          Section 4. Section 58-55-501 is amended to read:
             287           58-55-501. Unlawful conduct.
             288          Unlawful conduct includes:
             289          (1) engaging in a construction trade, acting as a contractor, an alarm business or
             290      company, or an alarm company agent, or representing oneself to be engaged in a construction
             291      trade or to be acting as a contractor in a construction trade requiring licensure, unless the
             292      person doing any of these is appropriately licensed or exempted from licensure under this
             293      chapter;
             294          (2) acting in a construction trade, as an alarm business or company, or as an alarm
             295      company agent beyond the scope of the license held;
             296          (3) hiring or employing in any manner an unlicensed person, other than an employee
             297      for wages who is not required to be licensed under this chapter, to engage in a construction
             298      trade for which licensure is required or to act as a contractor or subcontractor in a construction
             299      trade requiring licensure;
             300          (4) applying for or obtaining a building permit either for oneself or another when not
             301      licensed or exempted from licensure as a contractor under this chapter;
             302          (5) issuing a building permit to any person for whom there is no evidence of a current
             303      license or exemption from licensure as a contractor under this chapter;
             304          (6) applying for or obtaining a building permit for the benefit of or on behalf of any
             305      other person who is required to be licensed under this chapter but who is not licensed or is
             306      otherwise not entitled to obtain or receive the benefit of the building permit;


             307          (7) failing to obtain a building permit when required by law or rule;
             308          (8) submitting a bid for any work for which a license is required under this chapter by a
             309      person not licensed or exempted from licensure as a contractor under this chapter;
             310          (9) willfully or deliberately misrepresenting or omitting a material fact in connection
             311      with an application to obtain or renew a license under this chapter;
             312          (10) allowing one's license to be used by another except as provided by statute or rule;
             313          (11) doing business under a name other than the name appearing on the license, except
             314      as permitted by statute or rule;
             315          (12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
             316      journeyman plumber, residential journeyman plumber, journeyman electrician, master
             317      electrician, or residential electrician, failing to directly supervise an apprentice under one's
             318      supervision or exceeding the number of apprentices one is allowed to have under his
             319      supervision;
             320          (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
             321      funds in payment for a specific project from an owner or any other person, which funds are to
             322      pay for work performed or materials and services furnished for that specific project, and after
             323      receiving the funds to exercise unauthorized control over the funds by failing to pay the full
             324      amounts due and payable to persons who performed work or furnished materials or services
             325      within a reasonable period of time;
             326          (14) employing an unlicensed alarm business or company or an unlicensed individual
             327      as an alarm company agent, except as permitted under the exemption from licensure provisions
             328      under Section 58-1-307 ;
             329          (15) if licensed as an alarm company or alarm company agent, filing with the division
             330      fingerprint cards for an applicant which are not those of the applicant, or are in any other way
             331      false or fraudulent and intended to mislead the division in its consideration of the applicant for
             332      licensure;
             333          (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
             334          (a) the building or construction laws of this state or any political subdivision;
             335          (b) the safety and labor laws applicable to a project;
             336          (c) any provision of the health laws applicable to a project;
             337          (d) the workers' compensation insurance laws of the state applicable to a project;


             338          (e) the laws governing withholdings for employee state and federal income taxes,
             339      unemployment taxes, FICA, or other required withholdings; or
             340          (f) reporting, notification, and filing laws of this state or the federal government;
             341          (17) aiding or abetting any person in evading the provisions of this chapter or rules
             342      established under the authority of the division to govern this chapter;
             343          (18) engaging in the construction trade or as a contractor for the construction of
             344      residences of up to two units when not currently registered or exempt from registration as a
             345      qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
             346      Fund Act;
             347          (19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
             348      written contract the notification required in Section 38-11-108 ;
             349          (20) wrongfully filing a mechanics' lien in violation of Section 38-1-25 ; or
             350          (21) if licensed as a contractor, not completing [a three-hour core education class and
             351      an additional three hours of professional education approved by the division and the
             352      Construction Services Commission within each two-year renewal cycle, beginning with the
             353      two-year renewal cycle that starts July 1, 2005, and ends June 30, 2007 unless an exemption
             354      has been granted to the licensee by the Construction Services Commission, with the
             355      concurrence of the division, except that this Subsection (21) is repealed effective July 1, 2010
             356      and its implementation is subject to the division receiving adequate funding for its
             357      implementation through a legislative appropriation] the approved continuing education
             358      required under Section 58-55-302.5 .




Legislative Review Note
    as of 12-16-09 9:41 AM


Office of Legislative Research and General Counsel


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