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S.B. 85 Enrolled

             1     

UTAH CONSTRUCTION TRADE LICENSING

             2     
ACT AMENDMENTS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Scott K. Jenkins

             6     
House Sponsor: Rebecca P. Edwards

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies provisions of the Utah Construction Trade Licensing Act relating to
             11      plumbers and electricians.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies definitions applicable to supervision of apprentice plumbers and
             15      electricians so that the Division of Occupational and Professional Licensing
             16      specifies what is reasonable direction, oversight, inspection, and evaluation of a
             17      person's work;
             18          .    modifies provisions relating to licensing exemptions for public utilities and persons
             19      engaged in minor plumbing work; and
             20          .    makes technical changes.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          58-55-102, as last amended by Laws of Utah 2008, Chapter 215
             28          58-55-305, as last amended by Laws of Utah 2009, Chapter 228
             29     


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


             58      master plumber, residential master plumber, journeyman plumber, or a residential journeyman
             59      plumber.
             60          [(6) "Approved supervision" means the immediate supervision of apprentices by
             61      qualified licensed electricians or plumbers as a part of a planned program of training.]
             62          [(7)] (6) "Board" means the Electrician Licensing Board, Alarm System Security and
             63      Licensing Board, or Plumbers Licensing Board created in Section 58-55-201 .
             64          [(8)] (7) "Combustion system" means an assembly consisting of:
             65          (a) piping and components with a means for conveying, either continuously or
             66      intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of
             67      the appliance;
             68          (b) the electric control and combustion air supply and venting systems, including air
             69      ducts; and
             70          (c) components intended to achieve control of quantity, flow, and pressure.
             71          [(9)] (8) "Commission" means the Construction Services Commission created under
             72      Section 58-55-103 .
             73          [(10)] (9) "Construction trade" means any trade or occupation involving:
             74          (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition
             75      to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
             76      or other project, development, or improvement to other than personal property; and
             77          (ii) constructing, remodeling, or repairing a manufactured home or mobile home as
             78      defined in Section 58-56-3 ; or
             79          (b) installation or repair of a residential or commercial natural gas appliance or
             80      combustion system.
             81          [(11)] (10) "Construction trades instructor" means a person licensed under this chapter
             82      to teach one or more construction trades in both a classroom and project environment, where a
             83      project is intended for sale to or use by the public and is completed under the direction of the
             84      instructor, who has no economic interest in the project.
             85          [(12)] (11) (a) "Contractor" means any person who for compensation other than wages


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


             114      Workforce Services.
             115          [(15)] (14) "Engage in a construction trade" means to:
             116          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
             117      in a construction trade; or
             118          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
             119      to believe one is or will act as a contractor.
             120          [(16)] (15) (a) "Financial responsibility" means a demonstration of a current and
             121      expected future condition of financial solvency evidencing a reasonable expectation to the
             122      division and the board that an applicant or licensee can successfully engage in business as a
             123      contractor without jeopardy to the public health, safety, and welfare.
             124          (b) Financial responsibility may be determined by an evaluation of the total history
             125      concerning the licensee or applicant including past, present, and expected condition and
             126      record of financial solvency and business conduct.
             127          [(17)] (16) "Gas appliance" means any device that uses natural gas to produce light,
             128      heat, power, steam, hot water, refrigeration, or air conditioning.
             129          [(18)] (17) (a) "General building contractor" means a person licensed under this
             130      chapter as a general building contractor qualified by education, training, experience, and
             131      knowledge to perform or superintend construction of structures for the support, shelter, and
             132      enclosure of persons, animals, chattels, or movable property of any kind or any of the
             133      components of that construction except plumbing, electrical work, mechanical work, and
             134      manufactured housing installation, for which the general building contractor shall employ the
             135      services of a contractor licensed in the particular specialty, except that a general building
             136      contractor engaged in the construction of single-family and multifamily residences up to four
             137      units may perform the mechanical work and hire a licensed plumber or electrician as an
             138      employee.
             139          (b) The division may by rule exclude general building contractors from engaging in
             140      the performance of other construction specialties in which there is represented a substantial
             141      risk to the public health, safety, and welfare, and for which a license is required unless that


             142      general building contractor holds a valid license in that specialty classification.
             143          [(19)] (18) (a) "General engineering contractor" means a person licensed under this
             144      chapter as a general engineering contractor qualified by education, training, experience, and
             145      knowledge to perform construction of fixed works in any of the following: irrigation, drainage,
             146      water, power, water supply, flood control, inland waterways, harbors, railroads, highways,
             147      tunnels, airports and runways, sewers and bridges, refineries, pipelines, chemical and
             148      industrial plants requiring specialized engineering knowledge and skill, piers, and foundations,
             149      or any of the components of those works.
             150          (b) A general engineering contractor may not perform construction of structures built
             151      primarily for the support, shelter, and enclosure of persons, animals, and chattels.
             152          [(20)] (19) "Immediate supervision" means reasonable direction, oversight, inspection,
             153      and evaluation of the work of a person[, in or out of the immediate presence of the supervising
             154      person, so as]:
             155          (a) as the division specifies in rule;
             156          (b) by, as applicable, a qualified electrician or plumber;
             157          (c) as part of a planned program of training; and
             158          (d) to ensure that the end result complies with applicable standards.
             159          [(21)] (20) "Individual" means a natural person.
             160          [(22)] (21) "Journeyman electrician" means a person licensed under this chapter as a
             161      journeyman electrician having the qualifications, training, experience, and knowledge to wire,
             162      install, and repair electrical apparatus and equipment for light, heat, power, and other
             163      purposes.
             164          [(23)] (22) "Journeyman plumber" means a person licensed under this chapter as a
             165      journeyman plumber having the qualifications, training, experience, and technical knowledge
             166      to engage in the plumbing trade.
             167          [(24)] (23) "Master electrician" means a person licensed under this chapter as a master
             168      electrician having the qualifications, training, experience, and knowledge to properly plan,
             169      layout, and supervise the wiring, installation, and repair of electrical apparatus and equipment


             170      for light, heat, power, and other purposes.
             171          [(25)] (24) "Master plumber" means a person licensed under this chapter as a master
             172      plumber having the qualifications, training, experience, and knowledge to properly plan and
             173      layout projects and supervise persons in the plumbing trade.
             174          [(26)] (25) "Person" means a natural person, sole proprietorship, joint venture,
             175      corporation, limited liability company, association, or organization of any type.
             176          [(27)] (26) (a) "Plumbing trade" means the performance of any mechanical work
             177      pertaining to the installation, alteration, change, repair, removal, maintenance, or use in
             178      buildings, or within three feet beyond the outside walls of buildings of pipes, fixtures, and
             179      fittings for:
             180          (i) delivery of the water supply;
             181          (ii) discharge of liquid and water carried waste; or
             182          (iii) the building drainage system within the walls of the building.
             183          (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
             184      fixtures and fixture traps, soil, waste and vent pipes, and the building drain and roof drains
             185      together with their devices, appurtenances, and connections where installed within the outside
             186      walls of the building.
             187          [(28)] (27) (a) "Ratio of apprentices" means, for the purpose of determining
             188      compliance with the requirements for planned programs of training and electrician apprentice
             189      licensing applications, the shop ratio of apprentice electricians to journeyman or master
             190      electricians shall be one journeyman or master electrician to one apprentice on industrial and
             191      commercial work, and one journeyman or master electrician to three apprentices on residential
             192      work.
             193          (b) On-the-job training shall be under circumstances in which the ratio of apprentices
             194      to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
             195      three apprentices to one supervisor on residential projects.
             196          [(29)] (28) "Residential and small commercial contractor" means a person licensed
             197      under this chapter as a residential and small commercial contractor qualified by education,


             198      training, experience, and knowledge to perform or superintend the construction of
             199      single-family residences, multifamily residences up to four units, and commercial construction
             200      of not more than three stories above ground and not more than 20,000 square feet, or any of
             201      the components of that construction except plumbing, electrical work, mechanical work, and
             202      manufactured housing installation, for which the residential and small commercial contractor
             203      shall employ the services of a contractor licensed in the particular specialty, except that a
             204      residential and small commercial contractor engaged in the construction of single-family and
             205      multifamily residences up to four units may perform the mechanical work and hire a licensed
             206      plumber or electrician as an employee.
             207          [(30)] (29) "Residential building," as it relates to the license classification of
             208      residential journeyman plumber and residential master plumber, means a single or multiple
             209      family dwelling of up to four units.
             210          [(31)] (30) "Residential journeyman electrician" means a person licensed under this
             211      chapter as a residential journeyman electrician having the qualifications, training, experience,
             212      and knowledge to wire, install, and repair electrical apparatus and equipment for light, heat,
             213      power, and other purposes on buildings using primarily nonmetallic sheath cable.
             214          [(32)] (31) "Residential journeyman plumber" means a person licensed under this
             215      chapter as a residential journeyman plumber having the qualifications, training, experience,
             216      and knowledge to engage in the plumbing trade as limited to the plumbing of residential
             217      buildings.
             218          [(33)] (32) "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)] (33) "Residential master plumber" means a person licensed under this chapter
             224      as a residential master plumber having the qualifications, training, experience, and knowledge
             225      to properly plan and layout projects and supervise persons in the plumbing trade as limited to


             226      the plumbing of residential buildings.
             227          [(35)] (34) "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
             230      which the voltage does not exceed 250 volts line to line and 125 volts to ground.
             231          [(36)] (35) (a) "Specialty contractor" means a person licensed under this chapter under
             232      a specialty contractor classification established by rule, who is qualified by education,
             233      training, 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)] (36) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
             239          [(38)] (37) "Unprofessional conduct" is as defined in Sections 58-1-501 and
             240      58-55-502 and as may be further defined by rule.
             241          [(39)] (38) "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 58-55-305 is amended to read:
             245           58-55-305. Exemptions from licensure.
             246          (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
             247      persons may engage in acts or practices included within the practice of construction trades,
             248      subject to the stated circumstances and limitations, without being licensed under this chapter:
             249          (a) an authorized representative of the United States government or an authorized
             250      employee of the state or any of its political subdivisions when working on construction work
             251      of the state or the subdivision, and when acting within the terms of the person's trust, office, or
             252      employment;
             253          (b) a person engaged in construction or operation incidental to the construction and


             254      repair of irrigation and drainage ditches of regularly constituted irrigation districts,
             255      reclamation districts, and drainage districts or construction and repair relating to farming,
             256      dairying, agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and
             257      gravel excavations, well drilling, as defined in Section 73-3-25 , hauling to and from
             258      construction sites, and lumbering;
             259          (c) public utilities operating under the rules of the Public Service Commission on
             260      [construction] work incidental to their own business;
             261          (d) sole owners of property engaged in building:
             262          (i) no more than one residential structure per year and no more than three residential
             263      structures per five years on their property for their own noncommercial, nonpublic use; except,
             264      a person other than the property owner or individuals described in Subsection (1)(e), who
             265      engages in building the structure must be licensed under this chapter if the person is otherwise
             266      required to be licensed under this chapter; or
             267          (ii) structures on their property for their own noncommercial, nonpublic use which are
             268      incidental to a residential structure on the property, including sheds, carports, or detached
             269      garages;
             270          (e) (i) a person engaged in construction or renovation of a residential building for
             271      noncommercial, nonpublic use if that person:
             272          (A) works without compensation other than token compensation that is not considered
             273      salary or wages; and
             274          (B) works under the direction of the property owner who engages in building the
             275      structure; and
             276          (ii) as used in this Subsection (1)(e), "token compensation" means compensation paid
             277      by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
             278      exempted from licensure under this Subsection (1)(e), that is:
             279          (A) minimal in value when compared with the fair market value of the services
             280      provided by the person;
             281          (B) not related to the fair market value of the services provided by the person; and


             282          (C) is incidental to the providing of services by the person including paying for or
             283      providing meals or refreshment while services are being provided, or paying reasonable
             284      transportation costs incurred by the person in travel to the site of construction;
             285          (f) a person engaged in the sale or merchandising of personal property that by its
             286      design or manufacture may be attached, installed, or otherwise affixed to real property who
             287      has contracted with a person, firm, or corporation licensed under this chapter to install, affix,
             288      or attach that property;
             289          (g) a contractor submitting a bid on a federal aid highway project, if, before
             290      undertaking construction under that bid, the contractor is licensed under this chapter;
             291          (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
             292      improvement of a building with a contracted or agreed value of less than $3,000, including
             293      both labor and materials, and including all changes or additions to the contracted or agreed
             294      upon work; and
             295          (ii) notwithstanding Subsection (1)(h)(i) and except as otherwise provided in this
             296      section:
             297          (A) work in the plumbing and electrical trades on a Subsection (1)(h)(i) project within
             298      any six month period of time:
             299          (I) must be performed by a licensed electrical or plumbing contractor, if the project
             300      involves an electrical or plumbing system; and
             301          (II) may be performed by a licensed journeyman electrician or plumber or an
             302      individual referred to in Subsection (1)(h)(ii)(A)(I), if the project involves a component of the
             303      system such as a faucet, toilet, fixture, device, outlet, or electrical switch;
             304          (B) installation, repair, or replacement of a residential or commercial gas appliance or
             305      a combustion system on a Subsection (1)(h)(i) project must be performed by a person who has
             306      received certification under Subsection 58-55-308 (2) except as otherwise provided in
             307      Subsection 58-55-308 (2)(d) or 58-55-308 (3);
             308          (C) installation, repair, or replacement of water-based fire protection systems on a
             309      Subsection (1)(h)(i) project must be performed by a licensed fire suppression systems


             310      contractor or a licensed journeyman plumber;
             311          (D) work as an alarm business or company or as an alarm company agent shall be
             312      performed by a licensed alarm business or company or a licensed alarm company agent, except
             313      as otherwise provided in this chapter;
             314          (E) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i)
             315      project must be performed by a licensed alarm business or company or a licensed alarm
             316      company agent;
             317          (F) installation, repair, or replacement of a heating, ventilation, or air conditioning
             318      system (HVAC) on a Subsection (1)(h)(i) project must be performed by an HVAC contractor
             319      licensed by the division;
             320          (G) installation, repair, or replacement of a radon mitigation system or a soil
             321      depressurization system must be performed by a licensed contractor; and
             322          (H) if the total value of the project is greater than $1,000, the person shall file with the
             323      division a one-time affirmation, subject to periodic reaffirmation as established by division
             324      rule, that the person has:
             325          (I) public liability insurance in coverage amounts and form established by division
             326      rule; and
             327          (II) if applicable, workers compensation insurance which would cover an employee of
             328      the person if that employee worked on the construction project;
             329          (i) a person practicing a specialty contractor classification or construction trade which
             330      the director does not classify by administrative rule as significantly impacting the public's
             331      health, safety, and welfare;
             332          (j) owners and lessees of property and persons regularly employed for wages by
             333      owners or lessees of property or their agents for the purpose of maintaining the property, are
             334      exempt from this chapter when doing work upon the property;
             335          (k) (i) a person engaged in minor plumbing work that is incidental, as defined by the
             336      division by rule, to the replacement or repair of a fixture or an appliance in a residential or
             337      small commercial building, or structure used for agricultural use, as defined in Section


             338      58-56-4 , provided that no modification is made to:
             339          (A) existing culinary water, soil, waste, or vent piping; or
             340          (B) a gas appliance or combustion system; and
             341          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
             342      an appliance is not included in the exemption provided under Subsection (1)(k)(i);
             343          (l) a person who ordinarily would be subject to the plumber licensure requirements
             344      under this chapter when installing or repairing a water conditioner or other water treatment
             345      apparatus if the conditioner or apparatus:
             346          (i) meets the appropriate state construction codes or local plumbing standards; and
             347          (ii) is installed or repaired under the direction of a person authorized to do the work
             348      under an appropriate specialty contractor license;
             349          (m) a person who ordinarily would be subject to the electrician licensure requirements
             350      under this chapter when employed by:
             351          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
             352      contractors or constructors, or street railway systems; or
             353          (ii) public service corporations, rural electrification associations, or municipal utilities
             354      who generate, distribute, or sell electrical energy for light, heat, or power;
             355          (n) a person involved in minor electrical work incidental to a mechanical or service
             356      installation;
             357          (o) a student participating in construction trade education and training programs
             358      approved by the commission with the concurrence of the director under the condition that:
             359          (i) all work intended as a part of a finished product on which there would normally be
             360      an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
             361      building inspector; and
             362          (ii) a licensed contractor obtains the necessary building permits; and
             363          (p) a delivery person when replacing any of the following existing equipment with a
             364      new gas appliance, provided there is an existing gas shutoff valve at the appliance:
             365          (i) gas range;


             366          (ii) gas dryer;
             367          (iii) outdoor gas barbeque; or
             368          (iv) outdoor gas patio heater.
             369          (2) A compliance agency as defined in Subsection 58-56-3 (4) that issues a building
             370      permit to a person requesting a permit as a sole owner of property referred to in Subsection
             371      (1)(d) shall notify the division, in writing or through electronic transmission, of the issuance of
             372      the permit.


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