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Second Substitute S.B. 35

Representative Todd E. Kiser proposes the following substitute bill:


             1     
CONSTRUCTION LICENSEES RELATED AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Karen Mayne

             5     
House Sponsor: Todd E. Kiser

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies labor, commerce, and general government provisions to address
             10      issues related to construction licensees that are unincorporated entities.
             11      Highlighted Provisions:
             12          This bill:
             13          .    amends provisions related to wages, workers' compensation, antidiscrimination, and
             14      occupational safety and health, to address coverage of owners of unincorporated
             15      entities that are construction licensees;
             16          .    addresses workers' compensation fraud;
             17          .    amends definitions;
             18          .    modifies requirements related to applying for a contractor license;
             19          .    addresses demonstration of financial responsibility;
             20          .    addresses administrative actions that can be taken related to unprofessional or
             21      unlawful conduct;
             22          .    addresses lawful presence in the United States;
             23          .    imposes workers' compensation and unemployment coverage requirements related
             24      to certain construction licensees; and
             25          .    makes technical and conforming amendments.


             26      Money Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          This bill takes effect on July 1, 2011.
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          34-28-2, as last amended by Laws of Utah 1997, Chapter 375
             33          34A-2-103, as last amended by Laws of Utah 2008, Chapters 250, 263, and 318
             34          34A-2-110, as last amended by Laws of Utah 2008, Chapter 263
             35          34A-5-102, as last amended by Laws of Utah 2008, Chapter 382
             36          34A-6-103, as last amended by Laws of Utah 2008, Chapter 382
             37          58-55-102, as last amended by Laws of Utah 2010, Chapters 27, 53, and 227
             38          58-55-302, as last amended by Laws of Utah 2010, Chapters 227 and 372
             39          58-55-306, as last amended by Laws of Utah 2002, Chapter 241
             40          58-55-401, as renumbered and amended by Laws of Utah 1994, Chapters 181 and 308
             41          58-55-501, as last amended by Laws of Utah 2010, Chapters 53 and 387
             42          58-55-502, as last amended by Laws of Utah 2001, Chapter 198
             43          58-55-503, as last amended by Laws of Utah 2010, Chapters 278 and 387
             44          63G-2-302, as last amended by Laws of Utah 2010, Chapters 36 and 379
             45          63G-11-104, as last amended by Laws of Utah 2010, Chapter 191
             46     
             47      Be it enacted by the Legislature of the state of Utah:
             48          Section 1. Section 34-28-2 is amended to read:
             49           34-28-2. Definitions -- Unincorporated entities.
             50          (1) As used in this chapter:
             51          [(1)] (a) "Commission" means the Labor Commission.
             52          [(2)] (b) "Division" means the Division of Antidiscrimination and Labor.
             53          [(3)] (c) "Employer" includes every person, firm, partnership, association, corporation,
             54      receiver or other officer of a court of this state, and any agent or officer of any of the
             55      above-mentioned classes, employing any person in this state.
             56          (d) "Unincorporated entity" means an entity organized or doing business in the state


             57      that is not:
             58          (i) an individual;
             59          (ii) a corporation; or
             60          (iii) publicly traded.
             61          [(4)] (e) "Wages" means [all] the amounts due the employee for labor or services,
             62      whether the amount is fixed or ascertained on a time, task, piece, commission basis or other
             63      method of calculating such amount.
             64          (2) (a) For purposes of this chapter, an unincorporated entity that is required to be
             65      licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act, is presumed to
             66      be the employer of each individual who, directly or indirectly, holds an ownership interest in
             67      the unincorporated entity.
             68          (b) Pursuant to rules made by the commission in accordance with Title 63G, Chapter 3,
             69      Utah Administrative Rulemaking Act, an unincorporated entity may rebut the presumption
             70      under Subsection (2)(a) for an individual by establishing by clear and convincing evidence that
             71      the individual:
             72          (i) is an active manager of the unincorporated entity;
             73          (ii) directly or indirectly holds at least a 8% ownership interest in the unincorporated
             74      entity; and
             75          (iii) is not subject to supervision or control in the performance of work by:
             76          (A) the unincorporated entity; or
             77          (B) a person with whom the unincorporated entity contracts.
             78          (c) As part of the rules made under Subsection (2)(b), the commission may define:
             79          (i) "active manager";
             80          (ii) "directly or indirectly holds at least a 8% ownership interest"; and
             81          (iii) "subject to supervision or control in the performance of work."
             82          (d) The commission by rule made in accordance with Title 63G, Chapter 3, Utah
             83      Administrative Rulemaking Act, may establish a procedure, consistent with Section 34-28-7 ,
             84      under which an unincorporated entity may seek approval of a mutual agreement to pay wages
             85      on non-regular paydays.
             86          Section 2. Section 34A-2-103 is amended to read:
             87           34A-2-103. Employers enumerated and defined -- Regularly employed --


             88      Statutory employers.
             89          (1) (a) The state, and each county, city, town, and school district in the state are
             90      considered employers under this chapter and Chapter 3, Utah Occupational Disease Act.
             91          (b) For the purposes of the exclusive remedy in this chapter and Chapter 3, Utah
             92      Occupational Disease Act prescribed in Sections 34A-2-105 and 34A-3-102 , the state is
             93      considered to be a single employer and includes any office, department, agency, authority,
             94      commission, board, institution, hospital, college, university, or other instrumentality of the
             95      state.
             96          (2) (a) Except as provided in Subsection (4), each person, including each public utility
             97      and each independent contractor, who regularly employs one or more workers or operatives in
             98      the same business, or in or about the same establishment, under any contract of hire, express or
             99      implied, oral or written, is considered an employer under this chapter and Chapter 3, Utah
             100      Occupational Disease Act.
             101          (b) As used in this Subsection (2):
             102          (i) "Independent contractor" means any person engaged in the performance of any work
             103      for another who, while so engaged, is:
             104          (A) independent of the employer in all that pertains to the execution of the work;
             105          (B) not subject to the routine rule or control of the employer;
             106          (C) engaged only in the performance of a definite job or piece of work; and
             107          (D) subordinate to the employer only in effecting a result in accordance with the
             108      employer's design.
             109          (ii) "Regularly" includes all employments in the usual course of the trade, business,
             110      profession, or occupation of the employer, whether continuous throughout the year or for only a
             111      portion of the year.
             112          (3) (a) The client under a professional employer organization agreement regulated
             113      under Title 31A, Chapter 40, Professional Employer Organization Licensing Act:
             114          (i) is considered the employer of a covered employee; and
             115          (ii) subject to Section 31A-40-209 , shall secure workers' compensation benefits for a
             116      covered employee by complying with Subsection 34A-2-201 (1) or (2) and commission rules.
             117          (b) The division shall promptly inform the Insurance Department if the division has
             118      reason to believe that a professional employer organization is not in compliance with


             119      Subsection 34A-2-201 (1) or (2) and commission rules.
             120          (4) A domestic employer who does not employ one employee or more than one
             121      employee at least 40 hours per week is not considered an employer under this chapter and
             122      Chapter 3, Utah Occupational Disease Act.
             123          (5) (a) As used in this Subsection (5):
             124          (i) (A) "agricultural employer" means a person who employs agricultural labor as
             125      defined in Subsections 35A-4-206 (1) and (2) and does not include employment as provided in
             126      Subsection 35A-4-206 (3); and
             127          (B) notwithstanding Subsection (5)(a)(i)(A), only for purposes of determining who is a
             128      member of the employer's immediate family under Subsection (5)(a)(ii), if the agricultural
             129      employer is a corporation, partnership, or other business entity, "agricultural employer" means
             130      an officer, director, or partner of the business entity;
             131          (ii) "employer's immediate family" means:
             132          (A) an agricultural employer's:
             133          (I) spouse;
             134          (II) grandparent;
             135          (III) parent;
             136          (IV) sibling;
             137          (V) child;
             138          (VI) grandchild;
             139          (VII) nephew; or
             140          (VIII) niece;
             141          (B) a spouse of any person provided in Subsection (5)(a)(ii)(A)(II) through (VIII); or
             142          (C) an individual who is similar to those listed in Subsections (5)(a)(ii)(A) or (B) as
             143      defined by rules of the commission; and
             144          (iii) "nonimmediate family" means a person who is not a member of the employer's
             145      immediate family.
             146          (b) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
             147      agricultural employer is not considered an employer of a member of the employer's immediate
             148      family.
             149          (c) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an


             150      agricultural employer is not considered an employer of a nonimmediate family employee if:
             151          (i) for the previous calendar year the agricultural employer's total annual payroll for all
             152      nonimmediate family employees was less than $8,000; or
             153          (ii) (A) for the previous calendar year the agricultural employer's total annual payroll
             154      for all nonimmediate family employees was equal to or greater than $8,000 but less than
             155      $50,000; and
             156          (B) the agricultural employer maintains insurance that covers job-related injuries of the
             157      employer's nonimmediate family employees in at least the following amounts:
             158          (I) $300,000 liability insurance, as defined in Section 31A-1-301 ; and
             159          (II) $5,000 for health care benefits similar to benefits under health care insurance as
             160      defined in Section 31A-1-301 .
             161          (d) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
             162      agricultural employer is considered an employer of a nonimmediate family employee if:
             163          (i) for the previous calendar year the agricultural employer's total annual payroll for all
             164      nonimmediate family employees is equal to or greater than $50,000; or
             165          (ii) (A) for the previous year the agricultural employer's total payroll for nonimmediate
             166      family employees was equal to or exceeds $8,000 but is less than $50,000; and
             167          (B) the agricultural employer fails to maintain the insurance required under Subsection
             168      (5)(c)(ii)(B).
             169          (6) An employer of agricultural laborers or domestic servants who is not considered an
             170      employer under this chapter and Chapter 3, Utah Occupational Disease Act, may come under
             171      this chapter and Chapter 3, Utah Occupational Disease Act, by complying with:
             172          (a) this chapter and Chapter 3, Utah Occupational Disease Act; and
             173          (b) the rules of the commission.
             174          (7) (a) (i) As used in this Subsection (7)(a), "employer" includes any of the following
             175      persons that procures work to be done by a contractor notwithstanding whether or not the
             176      person directly employs a person:
             177          (A) a sole proprietorship;
             178          (B) a corporation;
             179          (C) a partnership;
             180          (D) a limited liability company; or


             181          (E) a person similar to one described in Subsections (7)(a)(i)(A) through (D).
             182          (ii) If an employer procures any work to be done wholly or in part for the employer by
             183      a contractor over whose work the employer retains supervision or control, and this work is a
             184      part or process in the trade or business of the employer, the contractor, all persons employed by
             185      the contractor, all subcontractors under the contractor, and all persons employed by any of
             186      these subcontractors, are considered employees of the original employer for the purposes of
             187      this chapter and Chapter 3, Utah Occupational Disease Act.
             188          (b) Any person who is engaged in constructing, improving, repairing, or remodelling a
             189      residence that the person owns or is in the process of acquiring as the person's personal
             190      residence may not be considered an employee or employer solely by operation of Subsection
             191      (7)(a).
             192          (c) A partner in a partnership or an owner of a sole proprietorship is not considered an
             193      employee under Subsection (7)(a) if the employer who procures work to be done by the
             194      partnership or sole proprietorship obtains and relies on either:
             195          (i) a valid certification of the partnership's or sole proprietorship's compliance with
             196      Section 34A-2-201 indicating that the partnership or sole proprietorship secured the payment of
             197      workers' compensation benefits pursuant to Section 34A-2-201 ; or
             198          (ii) if a partnership or sole proprietorship with no employees other than a partner of the
             199      partnership or owner of the sole proprietorship, a workers' compensation coverage waiver
             200      issued by an insurer pursuant to Section 31A-22-1011 stating that:
             201          (A) the partnership or sole proprietorship is customarily engaged in an independently
             202      established trade, occupation, profession, or business; and
             203          (B) the partner or owner personally waives the partner's or owner's entitlement to the
             204      benefits of this chapter and Chapter 3, Utah Occupational Disease Act, in the operation of the
             205      partnership or sole proprietorship.
             206          (d) A director or officer of a corporation is not considered an employee under
             207      Subsection (7)(a) if the director or officer is excluded from coverage under Subsection
             208      34A-2-104 (4).
             209          (e) A contractor or subcontractor is not an employee of the employer under Subsection
             210      (7)(a), if the employer who procures work to be done by the contractor or subcontractor obtains
             211      and relies on either:


             212          (i) a valid certification of the contractor's or subcontractor's compliance with Section
             213      34A-2-201 ; or
             214          (ii) if a partnership, corporation, or sole proprietorship with no employees other than a
             215      partner of the partnership, officer of the corporation, or owner of the sole proprietorship, a
             216      workers' compensation coverage waiver issued by an insurer pursuant to Section 31A-22-1011
             217      stating that:
             218          (A) the partnership, corporation, or sole proprietorship is customarily engaged in an
             219      independently established trade, occupation, profession, or business; and
             220          (B) the partner, corporate officer, or owner personally waives the partner's, corporate
             221      officer's, or owner's entitlement to the benefits of this chapter and Chapter 3, Utah
             222      Occupational Disease Act, in the operation of the partnership's, corporation's, or sole
             223      proprietorship's enterprise under a contract of hire for services.
             224          (f) (i) For purposes of this Subsection (7)(f), "eligible employer" means a person who:
             225          (A) is an employer; and
             226          (B) procures work to be done wholly or in part for the employer by a contractor,
             227      including:
             228          (I) all persons employed by the contractor;
             229          (II) all subcontractors under the contractor; and
             230          (III) all persons employed by any of these subcontractors.
             231          (ii) Notwithstanding the other provisions in this Subsection (7), if the conditions of
             232      Subsection (7)(f)(iii) are met, an eligible employer is considered an employer for purposes of
             233      Section 34A-2-105 of the contractor, subcontractor, and all persons employed by the contractor
             234      or subcontractor described in Subsection (7)(f)(i)(B).
             235          (iii) Subsection (7)(f)(ii) applies if the eligible employer:
             236          (A) under Subsection (7)(a) is liable for and pays workers' compensation benefits as an
             237      original employer under Subsection (7)(a) because the contractor or subcontractor fails to
             238      comply with Section 34A-2-201 ;
             239          (B) (I) secures the payment of workers' compensation benefits for the contractor or
             240      subcontractor pursuant to Section 34A-2-201 ;
             241          (II) procures work to be done that is part or process of the trade or business of the
             242      eligible employer; and


             243          (III) does the following with regard to a written workplace accident and injury
             244      reduction program that meets the requirements of Subsection 34A-2-111 (3)(d):
             245          (Aa) adopts the workplace accident and injury reduction program;
             246          (Bb) posts the workplace accident and injury reduction program at the work site at
             247      which the eligible employer procures work; and
             248          (Cc) enforces the workplace accident and injury reduction program according to the
             249      terms of the workplace accident and injury reduction program; or
             250          (C) (I) obtains and relies on:
             251          (Aa) a valid certification described in Subsection (7)(c)(i) or (7)(e)(i);
             252          (Bb) a workers' compensation coverage waiver described in Subsection (7)(c)(ii) or
             253      (7)(e)(ii); or
             254          (Cc) proof that a director or officer is excluded from coverage under Subsection
             255      34A-2-104 (4);
             256          (II) is liable under Subsection (7)(a) for the payment of workers' compensation benefits
             257      if the contractor or subcontractor fails to comply with Section 34A-2-201 ;
             258          (III) procures work to be done that is part or process in the trade or business of the
             259      eligible employer; and
             260          (IV) does the following with regard to a written workplace accident and injury
             261      reduction program that meets the requirements of Subsection 34A-2-111 (3)(d):
             262          (Aa) adopts the workplace accident and injury reduction program;
             263          (Bb) posts the workplace accident and injury reduction program at the work site at
             264      which the eligible employer procures work; and
             265          (Cc) enforces the workplace accident and injury reduction program according to the
             266      terms of the workplace accident and injury reduction program.
             267          (8) (a) For purposes of this Subsection (8), "unincorporated entity" means an entity
             268      organized or doing business in the state that is not:
             269          (i) an individual;
             270          (ii) a corporation; or
             271          (iii) publicly traded.
             272          (b) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
             273      unincorporated entity that is required to be licensed under Title 58, Chapter 55, Utah


             274      Construction Trades Licensing Act, is considered the employer of each individual who holds,
             275      directly or indirectly, an ownership interest in the unincorporated entity. Notwithstanding
             276      Subsection (7)(c) and Subsection 34A-2-104 (3), the unincorporated entity shall provide the
             277      individual who holds the ownership interest workers' compensation coverage under this chapter
             278      and Chapter 3, Utah Occupational Disease Act.
             279          Section 3. Section 34A-2-110 is amended to read:
             280           34A-2-110. Workers' compensation insurance fraud -- Elements -- Penalties --
             281      Notice.
             282          (1) As used in this section:
             283          (a) "Corporation" has the same meaning as in Section 76-2-201 .
             284          (b) "Intentionally" has the same meaning as in Section 76-2-103 .
             285          (c) "Knowingly" has the same meaning as in Section 76-2-103 .
             286          (d) "Person" has the same meaning as in Section 76-1-601 .
             287          (e) "Recklessly" has the same meaning as in Section 76-2-103 .
             288          (f) "Thing of value" means one or more of the following obtained under this chapter or
             289      Chapter 3, Utah Occupational Disease Act:
             290          (i) workers' compensation insurance coverage;
             291          (ii) disability compensation;
             292          (iii) a medical benefit;
             293          (iv) a good;
             294          (v) a professional service;
             295          (vi) a fee for a professional service; or
             296          (vii) anything of value.
             297          (2) (a) A person is guilty of workers' compensation insurance fraud if that person
             298      intentionally, knowingly, or recklessly:
             299          (i) devises a scheme or artifice to do the following by means of a false or fraudulent
             300      pretense, representation, promise, or material omission:
             301          (A) obtain a thing of value under this chapter or Chapter 3;
             302          (B) avoid paying the premium that an insurer charges, for an employee on the basis of
             303      the underwriting criteria applicable to that employee, to obtain a thing of value under this
             304      chapter or Chapter 3; or


             305          (C) deprive an employee of a thing of value under this chapter or Chapter 3; and
             306          (ii) communicates or causes a communication with another in furtherance of the
             307      scheme or artifice.
             308          (b) A violation of this Subsection (2) includes a scheme or artifice to:
             309          (i) make or cause to be made a false written or oral statement with the intent to obtain
             310      insurance coverage as mandated by this chapter or Chapter 3 at a rate that does not reflect the
             311      risk, industry, employer, or class code actually covered by the insurance coverage;
             312          (ii) form a business, reorganize a business, or change ownership in a business with the
             313      intent to:
             314          (A) obtain insurance coverage as mandated by this chapter or Chapter 3 at a rate that
             315      does not reflect the risk, industry, employer, or class code actually covered by the insurance
             316      coverage;
             317          (B) misclassify an employee as described in Subsection (2)(b)(iii); or
             318          (C) deprive an employee of workers' compensation coverage as required by Subsection
             319      34A-2-103 (8);
             320          (iii) misclassify an employee as one of the following so as to avoid the obligation to
             321      obtain insurance coverage as mandated by this chapter or Chapter 3:
             322          (A) an independent contractor;
             323          (B) a sole proprietor;
             324          (C) an owner;
             325          (D) a partner;
             326          (E) an officer; or
             327          (F) a member in a limited liability company;
             328          (iv) use a workers' compensation coverage waiver issued under Section 31A-22-1011
             329      to deprive an employee of workers' compensation coverage under this chapter or Chapter 3; or
             330          (v) collect or make a claim for temporary disability compensation as provided in
             331      Section 34A-2-410 while working for gain.
             332          (3) (a) Workers' compensation insurance fraud under Subsection (2) is punishable in
             333      the manner prescribed in Subsection (3)(c).
             334          (b) A corporation or association is guilty of the offense of workers' compensation
             335      insurance fraud under the same conditions as those set forth in Section 76-2-204 .


             336          (c) (i) In accordance with Subsection (3)(c)(ii), the determination of the degree of an
             337      offense under Subsection (2) shall be measured by the following on the basis of which creates
             338      the greatest penalty:
             339          (A) the total value of all property, money, or other things obtained or sought to be
             340      obtained by the scheme or artifice described in Subsection (2); or
             341          (B) the number of individuals not covered under this chapter or Chapter 3 because of
             342      the scheme or artifice described in Subsection (2).
             343          (ii) A person is guilty of:
             344          (A) a class A misdemeanor:
             345          (I) if the value of the property, money, or other thing of value described in Subsection
             346      (3)(c)(i)(A) is less than $1,000; or
             347          (II) for each individual described in Subsection (3)(c)(i)(B), if the number of
             348      individuals described in Subsection (3)(c)(i)(B) is less than five;
             349          (B) a third degree felony:
             350          (I) if the value of the property, money, or other thing of value described in Subsection
             351      (3)(c)(i)(A) is equal to or greater than $1,000, but is less than $5,000; or
             352          (II) for each individual described in Subsection (3)(c)(i)(B), if the number of
             353      individuals described in Subsection (3)(c)(i)(B) is equal to or greater than five, but is less than
             354      50; and
             355          (C) a second degree felony:
             356          (I) if the value of the property, money, or other thing of value described in Subsection
             357      (3)(c)(i)(A) is equal to or greater than $5,000; or
             358          (II) for each individual described in Subsection (3)(c)(i)(B), if the number of
             359      individuals described in Subsection (3)(c)(i)(B) is equal to or greater than 50.
             360          (4) The following are not a necessary element of an offense described in Subsection
             361      (2):
             362          (a) reliance on the part of a person;
             363          (b) the intent on the part of the perpetrator of an offense described in Subsection (2) to
             364      permanently deprive a person of property, money, or anything of value; or
             365          (c) an insurer or self-insured employer giving written notice in accordance with
             366      Subsection (5) that workers' compensation insurance fraud is a crime.


             367          (5) (a) An insurer or self-insured employer who, in connection with this chapter or
             368      Chapter 3, Utah Occupational Disease Act, prints, reproduces, or furnishes a form described in
             369      Subsection (5)(b) shall cause to be printed or displayed in comparative prominence with other
             370      content on the form the statement: "Any person who knowingly presents false or fraudulent
             371      underwriting information, files or causes to be filed a false or fraudulent claim for disability
             372      compensation or medical benefits, or submits a false or fraudulent report or billing for health
             373      care fees or other professional services is guilty of a crime and may be subject to fines and
             374      confinement in state prison."
             375          (b) Subsection (5)(a) applies to a form upon which a person:
             376          (i) applies for insurance coverage;
             377          (ii) applies for a workers' compensation coverage waiver issued under Section
             378      31A-22-1011 ;
             379          (iii) reports payroll;
             380          (iv) makes a claim by reason of accident, injury, death, disease, or other claimed loss;
             381      or
             382          (v) makes a report or gives notice to an insurer or self-insured employer.
             383          (c) An insurer or self-insured employer who issues a check, warrant, or other financial
             384      instrument in payment of compensation issued under this chapter or Chapter 3, shall cause to
             385      be printed or displayed in comparative prominence above the area for endorsement a statement
             386      substantially similar to the following: "Workers' compensation insurance fraud is a crime
             387      punishable by Utah law."
             388          (d) This Subsection (5) applies only to the legal obligations of an insurer or a
             389      self-insured employer.
             390          (e) A person who violates Subsection (2) is guilty of workers' compensation insurance
             391      fraud, and the failure of an insurer or a self-insured employer to fully comply with this
             392      Subsection (5) is not:
             393          (i) a defense to violating Subsection (2); or
             394          (ii) grounds for suppressing evidence.
             395          (6) In the absence of malice, a person, employer, insurer, or governmental entity that
             396      reports a suspected fraudulent act relating to a workers' compensation insurance policy or claim
             397      is not subject to civil liability for libel, slander, or another relevant cause of action.


             398          (7) In an action involving workers' compensation, this section supersedes Title 31A,
             399      Chapter 31, Insurance Fraud Act.
             400          Section 4. Section 34A-5-102 is amended to read:
             401           34A-5-102. Definitions -- Unincorporated entities.
             402          (1) As used in this chapter:
             403          [(1)] (a) "Apprenticeship" means a program for the training of apprentices including a
             404      program providing the training of those persons defined as apprentices by Section 35A-6-102 .
             405          [(2)] (b) "Bona fide occupational qualification" means a characteristic applying to an
             406      employee:
             407          [(a)] (i) that is necessary to the operation; or
             408          [(b)] (ii) is the essence of the employee's employer's business.
             409          [(3)] (c) "Court" means:
             410          [(a)] (i) the district court in the judicial district of the state in which the asserted unfair
             411      employment practice occurred; or
             412          [(b)] (ii) if this court is not in session at that time, a judge of the court described in
             413      Subsection [(3)(a)] (1)(c)(i).
             414          [(4)] (d) "Director" means the director of the division.
             415          [(5)] (e) "Disability" means a physical or mental disability as defined and covered by
             416      the Americans with Disabilities Act of 1990, 42 U.S.C. Sec. 12102.
             417          [(6)] (f) "Division" means the Division of Antidiscrimination and Labor.
             418          [(7)] (g) "Employee" means any person applying with or employed by an employer.
             419          [(8) (a)] (h) (i) "Employer" means:
             420          [(i)] (A) the state;
             421          [(ii)] (B) any political subdivision;
             422          [(iii)] (C) a board, commission, department, institution, school district, trust, or agent
             423      of the state or its political subdivisions; or
             424          [(iv)] (D) a person employing 15 or more employees within the state for each working
             425      day in each of 20 calendar weeks or more in the current or preceding calendar year.
             426          [(b)] (ii) "Employer" does not include:
             427          [(i)] (A) a religious organization or association;
             428          [(ii)] (B) a religious corporation sole; or


             429          [(iii)] (C) any corporation or association constituting a wholly owned subsidiary or
             430      agency of any religious organization or association or religious corporation sole.
             431          [(9)] (i) "Employment agency" means any person:
             432          [(a)] (i) undertaking to procure employees or opportunities to work for any other
             433      person; or
             434          [(b)] (ii) holding [itself] the person out to be equipped to take an action described in
             435      Subsection [(9)(a)] (1)(i)(i).
             436          [(10)] (j) "Joint apprenticeship committee" means any association of representatives of
             437      a labor organization and an employer providing, coordinating, or controlling an apprentice
             438      training program.
             439          [(11)] (k) "Labor organization" means any organization that exists for the purpose in
             440      whole or in part of:
             441          [(a)] (i) collective bargaining;
             442          [(b)] (ii) dealing with employers concerning grievances, terms or conditions of
             443      employment; or
             444          [(c)] (iii) other mutual aid or protection in connection with employment.
             445          [(12)] (l) "National origin" means the place of birth, domicile, or residence of an
             446      individual or of an individual's ancestors.
             447          [(13)] (m) "On-the-job-training" means any program designed to instruct a person who,
             448      while learning the particular job for which the person is receiving instruction:
             449          [(a)] (i) is also employed at that job; or
             450          [(b)] (ii) may be employed by the employer conducting the program during the course
             451      of the program, or when the program is completed.
             452          [(14)] (n) "Person" means one or more individuals, partnerships, associations,
             453      corporations, legal representatives, trusts or trustees, receivers, the state and all political
             454      subdivisions and agencies of the state.
             455          [(15)] (o) "Presiding officer" means the same as that term is defined in Section
             456      63G-4-103 .
             457          [(16)] (p) "Prohibited employment practice" means a practice specified as
             458      discriminatory, and therefore unlawful, in Section 34A-5-106 .
             459          [(17)] (q) "Retaliate" means the taking of adverse action by an employer, employment


             460      agency, labor organization, apprenticeship program, on-the-job training program, or vocational
             461      school against one of its employees, applicants, or members because the employee, applicant,
             462      or member:
             463          [(a)] (i) has opposed any employment practice prohibited under this chapter; or
             464          [(b)] (ii) filed charges, testified, assisted, or participated in any way in any proceeding,
             465      investigation, or hearing under this chapter.
             466          (r) "Unincorporated entity" means an entity organized or doing business in the state
             467      that is not:
             468          (i) an individual;
             469          (ii) a corporation; or
             470          (iii) publicly traded.
             471          [(18)] (s) "Vocational school" means any school or institution conducting a course of
             472      instruction, training, or retraining to prepare individuals to follow an occupation or trade, or to
             473      pursue a manual, technical, industrial, business, commercial, office, personal services, or other
             474      nonprofessional occupations.
             475          (2) (a) For purposes of this chapter, an unincorporated entity that is required to be
             476      licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act, is presumed to
             477      be the employer of each individual who, directly or indirectly, holds an ownership interest in
             478      the unincorporated entity.
             479          (b) Pursuant to rules made by the commission in accordance with Title 63G, Chapter 3,
             480      Utah Administrative Rulemaking Act, an unincorporated entity may rebut the presumption
             481      under Subsection (2)(a) for an individual by establishing by clear and convincing evidence that
             482      the individual:
             483          (i) is an active manager of the unincorporated entity;
             484          (ii) directly or indirectly holds at least a 8% ownership interest in the unincorporated
             485      entity; and
             486          (iii) is not subject to supervision or control in the performance of work by:
             487          (A) the unincorporated entity; or
             488          (B) a person with whom the unincorporated entity contracts.
             489          (c) As part of the rules made under Subsection (2)(b), the commission may define:
             490          (i) "active manager";


             491          (ii) "directly or indirectly holds at least a 8% ownership interest"; and
             492          (iii) "subject to supervision or control in the performance of work."
             493          Section 5. Section 34A-6-103 is amended to read:
             494           34A-6-103. Definitions -- Unincorporated entities.
             495          (1) As used in this chapter:
             496          [(1)] (a) "Administrator" means the director of the Division of Occupational Safety and
             497      Health.
             498          [(2)] (b) "Amendment" means such modification or change in a code, standard, rule, or
             499      order intended for universal or general application.
             500          [(3)] (c) "Commission" means the Labor Commission.
             501          [(4)] (d) "Council" means the Utah Occupational Safety and Health Advisory Council.
             502          [(5)] (e) "Division" means the Division of Occupational Safety and Health.
             503          [(6)] (f) "Employee" includes any person suffered or permitted to work by an employer.
             504          [(7)] (g) "Employer" means:
             505          [(a)] (i) the state;
             506          [(b) each] (ii) a county, city, town, and school district in the state; and
             507          [(c) every person, firm, and private corporation]
             508          (iii) a person, including a public [utilities] utility, having one or more workers or
             509      operatives regularly employed in the same business, or in or about the same establishment,
             510      under any contract of hire.
             511          [(8)] (h) "Hearing" means a proceeding conducted by the commission.
             512          [(9)] (i) "Imminent danger" means a danger exists which reasonably could be expected
             513      to cause an occupational disease, death, or serious physical harm immediately, or before the
             514      danger could be eliminated through enforcement procedures under this chapter.
             515          [(10)] (j) "National consensus standard" means any occupational safety and health
             516      standard or modification:
             517          [(a)] (i) adopted by a nationally recognized standards-producing organization under
             518      procedures where it can be determined by the administrator and division that persons interested
             519      and affected by the standard have reached substantial agreement on its adoption;
             520          [(b)] (ii) formulated in a manner which affords an opportunity for diverse views to be
             521      considered; and


             522          [(c)] (iii) designated as such a standard by the Secretary of the United States
             523      Department of Labor.
             524          [(11)] (k) "Person" means the general public, one or more individuals, partnerships,
             525      associations, corporations, legal representatives, trustees, receivers, and the state and its
             526      political subdivisions.
             527          [(12)] (l) "Publish" means publication in accordance with Title 63G, Chapter 3, Utah
             528      Administrative Rulemaking Act.
             529          [(13)] (m) "Secretary" means the Secretary of the United States Department of Labor.
             530          [(14)] (n) "Standard" means an occupational health and safety standard or group of
             531      standards which requires conditions, or the adoption or use of one or more practices, means,
             532      methods, operations, or processes, reasonably necessary to provide safety and healthful
             533      employment and places of employment.
             534          (o) "Unincorporated entity" means an entity organized or doing business in the state
             535      that is not:
             536          (i) an individual;
             537          (ii) a corporation; or
             538          (iii) publicly traded.
             539          [(15)] (p) "Variance" means a special, limited modification or change in the code or
             540      standard applicable to the particular establishment of the employer or person petitioning for the
             541      modification or change.
             542          [(16)] (q) "Workplace" means any place of employment.
             543          (2) (a) For purposes of this chapter, an unincorporated entity that is required to be
             544      licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act, is presumed to
             545      be the employer of each individual who, directly or indirectly, holds an ownership interest in
             546      the unincorporated entity.
             547          (b) Pursuant to rules made by the commission in accordance with Title 63G, Chapter 3,
             548      Utah Administrative Rulemaking Act, an unincorporated entity may rebut the presumption
             549      under Subsection (2)(a) for an individual by establishing by clear and convincing evidence that
             550      the individual:
             551          (i) is an active manager of the unincorporated entity;
             552          (ii) directly or indirectly holds at least a 8% ownership interest in the unincorporated


             553      entity; and
             554          (iii) is not subject to supervision or control in the performance of work by:
             555          (A) the unincorporated entity; or
             556          (B) a person with whom the unincorporated entity contracts.
             557          (c) As part of the rules made under Subsection (2)(b), the commission may define:
             558          (i) "active manager";
             559          (ii) "directly or indirectly holds at least a 8% ownership interest"; and
             560          (iii) "subject to supervision or control in the performance of work."
             561          Section 6. Section 58-55-102 is amended to read:
             562           58-55-102. Definitions.
             563          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             564          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
             565      maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
             566      except as provided in Subsection (1)(b).
             567          (b) "Alarm business or company" does not include:
             568          (i) a person engaged in the manufacture and sale of alarm systems when that person is
             569      not engaged in the installation, maintenance, alteration, repair, replacement, servicing, or
             570      monitoring of alarm systems, and the manufacture or sale occurs only at a place of business
             571      established by the person engaged in the manufacture or sale and does not involve site visits at
             572      the place or intended place of installation of an alarm system; or
             573          (ii) an owner of an alarm system, or an employee of the owner of an alarm system who
             574      is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
             575      of the alarm system owned by that owner.
             576          (2) "Alarm company agent" means any individual employed within this state by a
             577      person engaged in the alarm business.
             578          (3) "Alarm system" means equipment and devices assembled for the purpose of:
             579          (a) detecting and signaling unauthorized intrusion or entry into or onto certain
             580      premises; or
             581          (b) signaling a robbery or attempted robbery on protected premises.
             582          (4) "Apprentice electrician" means a person licensed under this chapter as an
             583      apprentice electrician who is learning the electrical trade under the immediate supervision of a


             584      master electrician, residential master electrician, a journeyman electrician, or a residential
             585      journeyman electrician.
             586          (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
             587      plumber who is learning the plumbing trade under the immediate supervision of a master
             588      plumber, residential master plumber, journeyman plumber, or a residential journeyman
             589      plumber.
             590          (6) "Approved continuing education" means instruction provided through courses
             591      under a program established under Subsection 58-55-302.5 (2).
             592          (7) "Board" means the Electrician Licensing Board, Alarm System Security and
             593      Licensing Board, or Plumbers Licensing Board created in Section 58-55-201 .
             594          (8) "Combustion system" means an assembly consisting of:
             595          (a) piping and components with a means for conveying, either continuously or
             596      intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
             597      appliance;
             598          (b) the electric control and combustion air supply and venting systems, including air
             599      ducts; and
             600          (c) components intended to achieve control of quantity, flow, and pressure.
             601          (9) "Commission" means the Construction Services Commission created under Section
             602      58-55-103 .
             603          (10) "Construction trade" means any trade or occupation involving:
             604          (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition
             605      to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
             606      or other project, development, or improvement to other than personal property; and
             607          (ii) constructing, remodeling, or repairing a manufactured home or mobile home as
             608      defined in Section 58-56-3 ; or
             609          (b) installation or repair of a residential or commercial natural gas appliance or
             610      combustion system.
             611          (11) "Construction trades instructor" means a person licensed under this chapter to
             612      teach one or more construction trades in both a classroom and project environment, where a
             613      project is intended for sale to or use by the public and is completed under the direction of the
             614      instructor, who has no economic interest in the project.


             615          (12) (a) "Contractor" means any person who for compensation other than wages as an
             616      employee undertakes any work in the construction, plumbing, or electrical trade for which
             617      licensure is required under this chapter and includes:
             618          (i) a person who builds any structure on [his] the person's own property for the purpose
             619      of sale or who builds any structure intended for public use on [his] the person's own property;
             620          (ii) any person who represents [himself to be] that the person is a contractor by
             621      advertising or any other means;
             622          (iii) any person engaged as a maintenance person, other than an employee, who
             623      regularly engages in activities set forth under the definition of "construction trade";
             624          (iv) any person engaged in any construction trade for which licensure is required under
             625      this chapter; or
             626          (v) a construction manager who performs management and counseling services on a
             627      construction project for a fee.
             628          (b) "Contractor" does not include an alarm company or alarm company agent.
             629          (13) (a) "Electrical trade" means the performance of any electrical work involved in the
             630      installation, construction, alteration, change, repair, removal, or maintenance of facilities,
             631      buildings, or appendages or appurtenances.
             632          (b) "Electrical trade" does not include:
             633          (i) transporting or handling electrical materials;
             634          (ii) preparing clearance for raceways for wiring; or
             635          (iii) work commonly done by unskilled labor on any installations under the exclusive
             636      control of electrical utilities.
             637          (c) For purposes of Subsection (13)(b):
             638          (i) no more than one unlicensed person may be so employed unless more than five
             639      licensed electricians are employed by the shop; and
             640          (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio
             641      permitted by this Subsection (13)(c).
             642          (14) "Elevator" has the same meaning as defined in Section 34A-7-202 , except that for
             643      purposes of this chapter it does not mean a stair chair, a vertical platform lift, or an incline
             644      platform lift.
             645          (15) "Elevator contractor" means a sole proprietor, firm, or corporation licensed under


             646      this chapter that is engaged in the business of erecting, constructing, installing, altering,
             647      servicing, repairing, or maintaining an elevator.
             648          (16) "Elevator mechanic" means an individual who is licensed under this chapter as an
             649      elevator mechanic and who is engaged in erecting, constructing, installing, altering, servicing,
             650      repairing, or maintaining an elevator under the immediate supervision of an elevator contractor.
             651          (17) "Employee" means an individual as defined by the division by rule giving
             652      consideration to the definition adopted by the Internal Revenue Service and the Department of
             653      Workforce Services.
             654          (18) "Engage in a construction trade" means to:
             655          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
             656      in a construction trade; or
             657          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
             658      to believe one is or will act as a contractor.
             659          (19) (a) "Financial responsibility" means a demonstration of a current and expected
             660      future condition of financial solvency evidencing a reasonable expectation to the division and
             661      the board that an applicant or licensee can successfully engage in business as a contractor
             662      without jeopardy to the public health, safety, and welfare.
             663          (b) Financial responsibility may be determined by an evaluation of the total history
             664      concerning the licensee or applicant including past, present, and expected condition and record
             665      of financial solvency and business conduct.
             666          (20) "Gas appliance" means any device that uses natural gas to produce light, heat,
             667      power, steam, hot water, refrigeration, or air conditioning.
             668          (21) (a) "General building contractor" means a person licensed under this chapter as a
             669      general building contractor qualified by education, training, experience, and knowledge to
             670      perform or superintend construction of structures for the support, shelter, and enclosure of
             671      persons, animals, chattels, or movable property of any kind or any of the components of that
             672      construction except plumbing, electrical work, mechanical work, and manufactured housing
             673      installation, for which the general building contractor shall employ the services of a contractor
             674      licensed in the particular specialty, except that a general building contractor engaged in the
             675      construction of single-family and multifamily residences up to four units may perform the
             676      mechanical work and hire a licensed plumber or electrician as an employee.


             677          (b) The division may by rule exclude general building contractors from engaging in the
             678      performance of other construction specialties in which there is represented a substantial risk to
             679      the public health, safety, and welfare, and for which a license is required unless that general
             680      building contractor holds a valid license in that specialty classification.
             681          (22) (a) "General engineering contractor" means a person licensed under this chapter as
             682      a general engineering contractor qualified by education, training, experience, and knowledge to
             683      perform construction of fixed works in any of the following: irrigation, drainage, water, power,
             684      water supply, flood control, inland waterways, harbors, railroads, highways, tunnels, airports
             685      and runways, sewers and bridges, refineries, pipelines, chemical and industrial plants requiring
             686      specialized engineering knowledge and skill, piers, and foundations, or any of the components
             687      of those works.
             688          (b) A general engineering contractor may not perform construction of structures built
             689      primarily for the support, shelter, and enclosure of persons, animals, and chattels.
             690          (23) "Immediate supervision" means reasonable direction, oversight, inspection, and
             691      evaluation of the work of a person:
             692          (a) as the division specifies in rule;
             693          (b) by, as applicable, a qualified electrician or plumber;
             694          (c) as part of a planned program of training; and
             695          (d) to ensure that the end result complies with applicable standards.
             696          (24) "Individual" means a natural person.
             697          (25) "Journeyman electrician" means a person licensed under this chapter as a
             698      journeyman electrician having the qualifications, training, experience, and knowledge to wire,
             699      install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
             700          (26) "Journeyman plumber" means a person licensed under this chapter as a
             701      journeyman plumber having the qualifications, training, experience, and technical knowledge
             702      to engage in the plumbing trade.
             703          (27) "Master electrician" means a person licensed under this chapter as a master
             704      electrician having the qualifications, training, experience, and knowledge to properly plan,
             705      layout, and supervise the wiring, installation, and repair of electrical apparatus and equipment
             706      for light, heat, power, and other purposes.
             707          (28) "Master plumber" means a person licensed under this chapter as a master plumber


             708      having the qualifications, training, experience, and knowledge to properly plan and layout
             709      projects and supervise persons in the plumbing trade.
             710          (29) "Person" means a natural person, sole proprietorship, joint venture, corporation,
             711      limited liability company, association, or organization of any type.
             712          (30) (a) "Plumbing trade" means the performance of any mechanical work pertaining to
             713      the installation, alteration, change, repair, removal, maintenance, or use in buildings, or within
             714      three feet beyond the outside walls of buildings of pipes, fixtures, and fittings for:
             715          (i) delivery of the water supply;
             716          (ii) discharge of liquid and water carried waste; or
             717          (iii) the building drainage system within the walls of the building.
             718          (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
             719      fixtures and fixture traps, soil, waste and vent pipes, and the building drain and roof drains
             720      together with their devices, appurtenances, and connections where installed within the outside
             721      walls of the building.
             722          (31) (a) "Ratio of apprentices" means, for the purpose of determining compliance with
             723      the requirements for planned programs of training and electrician apprentice licensing
             724      applications, the shop ratio of apprentice electricians to journeyman or master electricians shall
             725      be one journeyman or master electrician to one apprentice on industrial and commercial work,
             726      and one journeyman or master electrician to three apprentices on residential work.
             727          (b) On-the-job training shall be under circumstances in which the ratio of apprentices
             728      to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
             729      three apprentices to one supervisor on residential projects.
             730          (32) "Residential and small commercial contractor" means a person licensed under this
             731      chapter as a residential and small commercial contractor qualified by education, training,
             732      experience, and knowledge to perform or superintend the construction of single-family
             733      residences, multifamily residences up to four units, and commercial construction of not more
             734      than three stories above ground and not more than 20,000 square feet, or any of the components
             735      of that construction except plumbing, electrical work, mechanical work, and manufactured
             736      housing installation, for which the residential and small commercial contractor shall employ
             737      the services of a contractor licensed in the particular specialty, except that a residential and
             738      small commercial contractor engaged in the construction of single-family and multifamily


             739      residences up to four units may perform the mechanical work and hire a licensed plumber or
             740      electrician as an employee.
             741          (33) "Residential building," as it relates to the license classification of residential
             742      journeyman plumber and residential master plumber, means a single or multiple family
             743      dwelling of up to four units.
             744          (34) "Residential journeyman electrician" means a person licensed under this chapter
             745      as a residential journeyman electrician having the qualifications, training, experience, and
             746      knowledge to wire, install, and repair electrical apparatus and equipment for light, heat, power,
             747      and other purposes on buildings using primarily nonmetallic sheath cable.
             748          (35) "Residential journeyman plumber" means a person licensed under this chapter as a
             749      residential journeyman plumber having the qualifications, training, experience, and knowledge
             750      to engage in the plumbing trade as limited to the plumbing of residential buildings.
             751          (36) "Residential master electrician" means a person licensed under this chapter as a
             752      residential master electrician having the qualifications, training, experience, and knowledge to
             753      properly plan, layout, and supervise the wiring, installation, and repair of electrical apparatus
             754      and equipment for light, heat, power, and other purposes on residential projects.
             755          (37) "Residential master plumber" means a person licensed under this chapter as a
             756      residential master plumber having the qualifications, training, experience, and knowledge to
             757      properly plan and layout projects and supervise persons in the plumbing trade as limited to the
             758      plumbing of residential buildings.
             759          (38) "Residential project," as it relates to an electrician or electrical contractor, means
             760      buildings primarily wired with nonmetallic sheathed cable, in accordance with standard rules
             761      and regulations governing this work, including the National Electrical Code, and in which the
             762      voltage does not exceed 250 volts line to line and 125 volts to ground.
             763          (39) (a) "Specialty contractor" means a person licensed under this chapter under a
             764      specialty contractor classification established by rule, who is qualified by education, training,
             765      experience, and knowledge to perform those construction trades and crafts requiring
             766      specialized skill, the regulation of which are determined by the division to be in the best
             767      interest of the public health, safety, and welfare.
             768          (b) A specialty contractor may perform work in crafts or trades other than those in
             769      which [he] the specialty contractor is licensed if they are incidental to the performance of [his]


             770      the specialty contractor's licensed craft or trade.
             771          (40) "Unincorporated entity" means an entity that is not:
             772          (a) an individual;
             773          (b) a corporation; or
             774          (c) publicly traded.
             775          [(40)] (41) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
             776          [(41)] (42) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-55-502
             777      and as may be further defined by rule.
             778          [(42)] (43) "Wages" means amounts due to an employee for labor or services whether
             779      the amount is fixed or ascertained on a time, task, piece, commission, or other basis for
             780      calculating the amount.
             781          Section 7. Section 58-55-302 is amended to read:
             782           58-55-302. Qualifications for licensure.
             783          (1) Each applicant for a license under this chapter shall:
             784          (a) submit an application prescribed by the division;
             785          (b) pay a fee as determined by the department under Section 63J-1-504 ;
             786          (c) (i) meet the examination requirements established by rule by the commission with
             787      the concurrence of the director, except for the classifications of apprentice plumber and
             788      apprentice electrician for whom no examination is required; or
             789          (ii) if required in Section 58-55-304 , the individual qualifier must pass the required
             790      examination if the applicant is a business entity;
             791          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
             792          (e) if an applicant for a contractor's license:
             793          (i) produce satisfactory evidence of financial responsibility, except for a construction
             794      trades instructor for whom evidence of financial responsibility is not required;
             795          (ii) produce satisfactory evidence of knowledge and experience in the construction
             796      industry and knowledge of the principles of the conduct of business as a contractor, reasonably
             797      necessary for the protection of the public health, safety, and welfare; [and]
             798          (iii) (A) be a licensed master electrician if an applicant for an electrical contractor's
             799      license or a licensed master residential electrician if an applicant for a residential electrical
             800      contractor's license;


             801          [(iv)] (B) be a licensed master plumber if an applicant for a plumbing contractor's
             802      license or a licensed master residential plumber if an applicant for a residential plumbing
             803      contractor's license; or
             804          [(v)] (C) be a licensed elevator mechanic and produce satisfactory evidence of three
             805      years experience as an elevator mechanic if an applicant for an elevator contractor's license;
             806      and
             807          (iv) when the applicant is an unincorporated entity, provide a list of the one or more
             808      individuals who hold an ownership interest in the applicant as of the day on which the
             809      application is filed, that includes for each individual:
             810          (A) the individual's name, address, and Social Security number; and
             811          (B) whether the individual will engage in a construction trade; and
             812          (f) if an applicant for a construction trades instructor license, satisfy any additional
             813      requirements established by rule.
             814          (2) After approval of an applicant for a contractor's license by the applicable board and
             815      the division, the applicant shall file the following with the division before the division issues
             816      the license:
             817          (a) proof of workers' compensation insurance which covers employees of the applicant
             818      in accordance with applicable Utah law;
             819          (b) proof of public liability insurance in coverage amounts and form established by rule
             820      except for a construction trades instructor for whom public liability insurance is not required;
             821      and
             822          (c) proof of registration as required by applicable law with the:
             823          (i) Utah Department of Commerce;
             824          (ii) Division of Corporations and Commercial Code;
             825          (iii) Unemployment Insurance Division in the Department of Workforce Services, for
             826      purposes of Title 35A, Chapter 4, Employment Security Act;
             827          (iv) State Tax Commission; and
             828          (v) Internal Revenue Service.
             829          (3) In addition to the general requirements for each applicant in Subsection (1),
             830      applicants shall comply with the following requirements to be licensed in the following
             831      classifications:


             832          (a) (i) A master plumber shall produce satisfactory evidence that the applicant:
             833          (A) has been a licensed journeyman plumber for at least two years and had two years of
             834      supervisory experience as a licensed journeyman plumber in accordance with division rule;
             835          (B) has received at least an associate of applied science degree or similar degree
             836      following the completion of a course of study approved by the division and had one year of
             837      supervisory experience as a licensed journeyman plumber in accordance with division rule; or
             838          (C) meets the qualifications determined by the division in collaboration with the board
             839      to be equivalent to Subsection (3)(a)(i)(A) or (B).
             840          (ii) An individual holding a valid Utah license as a journeyman plumber, based on at
             841      least four years of practical experience as a licensed apprentice under the supervision of a
             842      licensed journeyman plumber and four years as a licensed journeyman plumber, in effect
             843      immediately prior to May 5, 2008, is on and after May 5, 2008, considered to hold a current
             844      master plumber license under this chapter, and satisfies the requirements of this Subsection
             845      (3)(a) for the purpose of renewal or reinstatement of that license under Section 58-55-303 .
             846          (iii) An individual holding a valid plumbing contractor's license or residential
             847      plumbing contractor's license, in effect immediately prior to May 5, 2008, is on or after May 5,
             848      2008:
             849          (A) considered to hold a current master plumber license under this chapter if licensed
             850      as a plumbing contractor and a journeyman plumber, and satisfies the requirements of this
             851      Subsection (3)(a) for purposes of renewal or reinstatement of that license under Section
             852      58-55-303 ; and
             853          (B) considered to hold a current residential master plumber license under this chapter if
             854      licensed as a residential plumbing contractor and a residential journeyman plumber, and
             855      satisfies the requirements of this Subsection (3)(a) for purposes of renewal or reinstatement of
             856      that license under Section 58-55-303 .
             857          (b) A master residential plumber applicant shall produce satisfactory evidence that the
             858      applicant:
             859          (i) has been a licensed residential journeyman plumber for at least two years and had
             860      two years of supervisory experience as a licensed residential journeyman plumber in
             861      accordance with division rule; or
             862          (ii) meets the qualifications determined by the division in collaboration with the board


             863      to be equivalent to Subsection (3)(b)(i).
             864          (c) A journeyman plumber applicant shall produce satisfactory evidence of:
             865          (i) successful completion of the equivalent of at least four years of full-time training
             866      and instruction as a licensed apprentice plumber under supervision of a licensed master
             867      plumber or journeyman plumber and in accordance with a planned program of training
             868      approved by the division;
             869          (ii) at least eight years of full-time experience approved by the division in collaboration
             870      with the Plumbers Licensing Board; or
             871          (iii) satisfactory evidence of meeting the qualifications determined by the board to be
             872      equivalent to Subsection (3)(c)(i) or (c)(ii).
             873          (d) A residential journeyman plumber shall produce satisfactory evidence of:
             874          (i) completion of the equivalent of at least three years of full-time training and
             875      instruction as a licensed apprentice plumber under the supervision of a licensed residential
             876      master plumber, licensed residential journeyman plumber, or licensed journeyman plumber in
             877      accordance with a planned program of training approved by the division;
             878          (ii) completion of at least six years of full-time experience in a maintenance or repair
             879      trade involving substantial plumbing work; or
             880          (iii) meeting the qualifications determined by the board to be equivalent to Subsection
             881      (3)(d)(i) or (d)(ii).
             882          (e) The conduct of licensed apprentice plumbers and their licensed supervisors shall be
             883      in accordance with the following:
             884          (i) while engaging in the trade of plumbing, a licensed apprentice plumber shall be
             885      under the immediate supervision of a licensed master plumber, licensed residential master
             886      plumber, licensed journeyman plumber, or a licensed residential journeyman plumber; and
             887          (ii) a licensed apprentice plumber in the fourth through tenth year of training may work
             888      without supervision for a period not to exceed eight hours in any 24-hour period, but if the
             889      apprentice does not become a licensed journeyman plumber or licensed residential journeyman
             890      plumber by the end of the tenth year of apprenticeship, this nonsupervision provision no longer
             891      applies.
             892          (f) A master electrician applicant shall produce satisfactory evidence that the applicant:
             893          (i) is a graduate electrical engineer of an accredited college or university approved by


             894      the division and has one year of practical electrical experience as a licensed apprentice
             895      electrician;
             896          (ii) is a graduate of an electrical trade school, having received an associate of applied
             897      sciences degree following successful completion of a course of study approved by the division,
             898      and has two years of practical experience as a licensed journeyman electrician;
             899          (iii) has four years of practical experience as a journeyman electrician; or
             900          (iv) meets the qualifications determined by the board to be equivalent to Subsection
             901      (3)(f)(i), (ii), or (iii).
             902          (g) A master residential electrician applicant shall produce satisfactory evidence that
             903      the applicant:
             904          (i) has at least two years of practical experience as a residential journeyman electrician;
             905      or
             906          (ii) meets the qualifications determined by the board to be equivalent to this practical
             907      experience.
             908          (h) A journeyman electrician applicant shall produce satisfactory evidence that the
             909      applicant:
             910          (i) has successfully completed at least four years of full-time training and instruction as
             911      a licensed apprentice electrician under the supervision of a master electrician or journeyman
             912      electrician and in accordance with a planned training program approved by the division;
             913          (ii) has at least eight years of full-time experience approved by the division in
             914      collaboration with the Electricians Licensing Board; or
             915          (iii) meets the qualifications determined by the board to be equivalent to Subsection
             916      (3)(h)(i) or (ii).
             917          (i) A residential journeyman electrician applicant shall produce satisfactory evidence
             918      that the applicant:
             919          (i) has successfully completed two years of training in an electrical training program
             920      approved by the division;
             921          (ii) has four years of practical experience in wiring, installing, and repairing electrical
             922      apparatus and equipment for light, heat, and power under the supervision of a licensed master,
             923      journeyman, residential master, or residential journeyman electrician; or
             924          (iii) meets the qualifications determined by the division and applicable board to be


             925      equivalent to Subsection (3)(i)(i) or (ii).
             926          (j) The conduct of licensed apprentice electricians and their licensed supervisors shall
             927      be in accordance with the following:
             928          (i) A licensed apprentice electrician shall be under the immediate supervision of a
             929      licensed master, journeyman, residential master, or residential journeyman electrician. An
             930      apprentice in the fourth year of training may work without supervision for a period not to
             931      exceed eight hours in any 24-hour period.
             932          (ii) A licensed master, journeyman, residential master, or residential journeyman
             933      electrician may have under immediate supervision on a residential project up to three licensed
             934      apprentice electricians.
             935          (iii) A licensed master or journeyman electrician may have under immediate
             936      supervision on nonresidential projects only one licensed apprentice electrician.
             937          (k) An alarm company applicant shall:
             938          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
             939      the applicant who:
             940          (A) demonstrates 6,000 hours of experience in the alarm company business;
             941          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
             942      company business or in a construction business; and
             943          (C) passes an examination component established by rule by the commission with the
             944      concurrence of the director;
             945          (ii) if a corporation, provide:
             946          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             947      of all corporate officers, directors, and those responsible management personnel employed
             948      within the state or having direct responsibility for managing operations of the applicant within
             949      the state; and
             950          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             951      of all shareholders owning 5% or more of the outstanding shares of the corporation, except this
             952      shall not be required if the stock is publicly listed and traded;
             953          (iii) if a limited liability company, provide:
             954          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             955      of all company officers, and those responsible management personnel employed within the


             956      state or having direct responsibility for managing operations of the applicant within the state;
             957      and
             958          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             959      of all individuals owning 5% or more of the equity of the company;
             960          (iv) if a partnership, provide the names, addresses, dates of birth, Social Security
             961      numbers, and fingerprint cards of all general partners, and those responsible management
             962      personnel employed within the state or having direct responsibility for managing operations of
             963      the applicant within the state;
             964          (v) if a proprietorship, provide the names, addresses, dates of birth, Social Security
             965      numbers, and fingerprint cards of the proprietor, and those responsible management personnel
             966      employed within the state or having direct responsibility for managing operations of the
             967      applicant within the state;
             968          (vi) if a trust, provide the names, addresses, dates of birth, Social Security numbers,
             969      and fingerprint cards of the trustee, and those responsible management personnel employed
             970      within the state or having direct responsibility for managing operations of the applicant within
             971      the state;
             972          (vii) be of good moral character in that officers, directors, shareholders described in
             973      Subsection (3)(k)(ii)(B), partners, proprietors, trustees, and responsible management personnel
             974      have not been convicted of a felony, a misdemeanor involving moral turpitude, or any other
             975      crime that when considered with the duties and responsibilities of an alarm company is
             976      considered by the board to indicate that the best interests of the public are served by granting
             977      the applicant a license;
             978          (viii) document that none of the applicant's officers, directors, shareholders described
             979      in Subsection (3)(k)(ii)(B), partners, proprietors, trustees, and responsible management
             980      personnel have been declared by any court of competent jurisdiction incompetent by reason of
             981      mental defect or disease and not been restored;
             982          (ix) document that none of the applicant's officers, directors, shareholders described in
             983      Subsection (3)(k)(ii)(B), partners, proprietors, and responsible management personnel are
             984      currently suffering from habitual drunkenness or from drug addiction or dependence;
             985          (x) file and maintain with the division evidence of:
             986          (A) comprehensive general liability insurance in form and in amounts to be established


             987      by rule by the commission with the concurrence of the director;
             988          (B) workers' compensation insurance that covers employees of the applicant in
             989      accordance with applicable Utah law; and
             990          (C) registration as is required by applicable law with the:
             991          (I) Division of Corporations and Commercial Code;
             992          (II) Unemployment Insurance Division in the Department of Workforce Services, for
             993      purposes of Title 35A, Chapter 4, Employment Security Act;
             994          (III) State Tax Commission; and
             995          (IV) Internal Revenue Service; and
             996          (xi) meet with the division and board.
             997          (l) Each applicant for licensure as an alarm company agent shall:
             998          (i) submit an application in a form prescribed by the division accompanied by
             999      fingerprint cards;
             1000          (ii) pay a fee determined by the department under Section 63J-1-504 ;
             1001          (iii) be of good moral character in that the applicant has not been convicted of a felony,
             1002      a misdemeanor involving moral turpitude, or any other crime that when considered with the
             1003      duties and responsibilities of an alarm company agent is considered by the board to indicate
             1004      that the best interests of the public are served by granting the applicant a license;
             1005          (iv) not have been declared by any court of competent jurisdiction incompetent by
             1006      reason of mental defect or disease and not been restored;
             1007          (v) not be currently suffering from habitual drunkenness or from drug addiction or
             1008      dependence; and
             1009          (vi) meet with the division and board if requested by the division or the board.
             1010          (m) (i) Each applicant for licensure as an elevator mechanic shall:
             1011          (A) provide documentation of experience and education credits of not less than three
             1012      years work experience in the elevator industry, in construction, maintenance, or service and
             1013      repair; and
             1014          (B) satisfactorily complete a written examination administered by the division
             1015      established by rule under Section 58-1-203 ; or
             1016          (C) provide certificates of completion of an apprenticeship program for elevator
             1017      mechanics, having standards substantially equal to those of this chapter and registered with the


             1018      United States Department of Labor Bureau Apprenticeship and Training or a state
             1019      apprenticeship council.
             1020          (ii) (A) If an elevator contractor licensed under this chapter cannot find a licensed
             1021      elevator mechanic to perform the work of erecting, constructing, installing, altering, servicing,
             1022      repairing, or maintaining an elevator, the contractor may:
             1023          (I) notify the division of the unavailability of licensed personnel; and
             1024          (II) request the division issue a temporary elevator mechanic license to an individual
             1025      certified by the contractor as having an acceptable combination of documented experience and
             1026      education to perform the work described in this Subsection (3)(m)(ii)(A).
             1027          (B) (I) The division may issue a temporary elevator mechanic license to an individual
             1028      certified under Subsection (3)(m)(ii)(A)(II) upon application by the individual, accompanied by
             1029      the appropriate fee as determined by the department under Section 63J-1-504 .
             1030          (II) The division shall specify the time period for which the license is valid and may
             1031      renew the license for an additional time period upon its determination that a shortage of
             1032      licensed elevator mechanics continues to exist.
             1033          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1034      division may make rules establishing when Federal Bureau of Investigation records shall be
             1035      checked for applicants as an alarm company or alarm company agent.
             1036          (5) To determine if an applicant meets the qualifications of Subsections (3)(k)(vii) and
             1037      (3)(l)(iii), the division shall provide an appropriate number of copies of fingerprint cards to the
             1038      Department of Public Safety with the division's request to:
             1039          (a) conduct a search of records of the Department of Public Safety for criminal history
             1040      information relating to each applicant for licensure as an alarm company or alarm company
             1041      agent and each applicant's officers, directors, shareholders described in Subsection
             1042      (3)(k)(ii)(B), partners, proprietors, and responsible management personnel; and
             1043          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
             1044      requiring a check of records of the [F.B.I.] Federal Bureau of Investigation for criminal history
             1045      information under this section.
             1046          (6) The Department of Public Safety shall send to the division:
             1047          (a) a written record of criminal history, or certification of no criminal history record, as
             1048      contained in the records of the Department of Public Safety in a timely manner after receipt of


             1049      a fingerprint card from the division and a request for review of Department of Public Safety
             1050      records; and
             1051          (b) the results of the [F.B.I.] Federal Bureau of Investigation review concerning an
             1052      applicant in a timely manner after receipt of information from the [F.B.I.] Federal Bureau of
             1053      Investigation.
             1054          (7) (a) The division shall charge each applicant for licensure as an alarm company or
             1055      alarm company agent a fee, in accordance with Section 63J-1-504 , equal to the cost of
             1056      performing the records reviews under this section.
             1057          (b) The division shall pay the Department of Public Safety the costs of all records
             1058      reviews, and the Department of Public Safety shall pay the [F.B.I.] Federal Bureau of
             1059      Investigation the costs of records reviews under this section.
             1060          (8) Information obtained by the division from the reviews of criminal history records of
             1061      the Department of Public Safety and the [F.B.I.] Federal Bureau of Investigation shall be used
             1062      or disseminated by the division only for the purpose of determining if an applicant for licensure
             1063      as an alarm company or alarm company agent is qualified for licensure.
             1064          (9) (a) An application for licensure under this chapter shall be denied if:
             1065          (i) the applicant has had a previous license, which was issued under this chapter,
             1066      suspended or revoked within one year prior to the date of the applicant's application;
             1067          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             1068          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             1069      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             1070      status, performing similar functions, or directly or indirectly controlling the applicant has
             1071      served in any similar capacity with any person or entity which has had a previous license,
             1072      which was issued under this chapter, suspended or revoked within one year prior to the date of
             1073      the applicant's application; or
             1074          (iii) (A) the applicant is an individual or sole proprietorship; and
             1075          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             1076      Subsection (9)(a)(ii)(B) in any entity which has had a previous license, which was issued under
             1077      this chapter, suspended or revoked within one year prior to the date of the applicant's
             1078      application.
             1079          (b) An application for licensure under this chapter shall be reviewed by the appropriate


             1080      licensing board prior to approval if:
             1081          (i) the applicant has had a previous license, which was issued under this chapter,
             1082      suspended or revoked more than one year prior to the date of the applicant's application;
             1083          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             1084          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             1085      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             1086      status, performing similar functions, or directly or indirectly controlling the applicant has
             1087      served in any similar capacity with any person or entity which has had a previous license,
             1088      which was issued under this chapter, suspended or revoked more than one year prior to the date
             1089      of the applicant's application; or
             1090          (iii) (A) the applicant is an individual or sole proprietorship; and
             1091          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             1092      Subsection (9)(b)(ii)(B) in any entity which has had a previous license, which was issued under
             1093      this chapter, suspended or revoked more than one year prior to the date of the applicant's
             1094      application.
             1095          (10) (a) A licensee that is an unincorporated entity shall file an ownership status report
             1096      with the division every 90 days after the day on which the license is issued if the licensee has as
             1097      an owner an individual who:
             1098          (i) owns an interest in the contractor that is an unincorporated entity;
             1099          (ii) owns, directly or indirectly, less than a 8% interest in the unincorporated entity, as
             1100      defined by rule made by the division in accordance with Title 63G, Chapter 3, Utah
             1101      Administrative Rulemaking Act; and
             1102          (iii) engages, or will engage, in a construction trade in Utah as an owner of the
             1103      contractor described in Subsection (10)(a)(i).
             1104          (b) An ownership status report required under this Subsection (10) shall:
             1105          (i) list each addition or deletion of an owner:
             1106          (A) for the first ownership status report, after the day on which the unincorporated
             1107      entity is licensed under this chapter; and
             1108          (B) for a subsequent ownership status report, after the day on which the previous
             1109      ownership status report is filed;
             1110          (ii) be in a format prescribed by the division that is consistent with a list provided


             1111      under Subsection 58-55-302 (1)(e)(iv); and
             1112          (iii) be accompanied by a fee set by the division in accordance with Section 63J-1-504
             1113      if the ownership status report indicates there is a change described in Subsection (10)(b)(i).
             1114          (c) The division may audit an ownership status report under this Subsection (10):
             1115          (i) in the same manner as the division may audit a demonstration of financial
             1116      responsibility under Section 58-55-306 ; and
             1117          (ii) to determine compliance with Subsection 58-55-501 (24) or (25) or Subsection
             1118      58-55-502 (8) or (9).
             1119          (11) (a) An unincorporated entity that provides labor to an entity licensed under this
             1120      chapter by providing an individual who owns an interest in the unincorporated entity to engage
             1121      in a construction trade in Utah shall file with the division:
             1122          (i) before the individual who owns an interest in the unincorporated entity engages in a
             1123      construction trade in Utah, a current list of the one or more individuals who hold an ownership
             1124      interest in the unincorporated entity, that includes for each individual:
             1125          (A) the individual's name, address, and Social Security number; and
             1126          (B) whether the individual will engage in a construction trade; and
             1127          (ii) every 90 days after the day on which the unincorporated entity provides the list
             1128      described in Subsection (11)(a)(i), an ownership status report containing the information that
             1129      would be required under Subsection (10) if the unincorporated entity were a licensed
             1130      contractor.
             1131          (b) When filing an ownership list described in Subsection (11)(a)(i) or an ownership
             1132      status report described in Subsection (11)(a)(ii) an unincorporated entity shall pay a fee set by
             1133      the division in accordance with Section 63J-1-504 .
             1134          (12) This chapter may not be interpreted to create or support an express or implied
             1135      independent contractor relationship between an unincorporated entity described in Subsections
             1136      (10) or (11) and the owners of the unincorporated entity for any purpose, including income tax
             1137      withholding,
             1138          (13) A Social Security number provided under Subsection (1)(e)(iv) is a private record
             1139      under Subsection 63G-2-302 (1)(h).
             1140          Section 8. Section 58-55-306 is amended to read:
             1141           58-55-306. Financial responsibility.


             1142          (1) An applicant for licensure as a contractor, and a licensee applying for renewal or
             1143      reinstatement of a contractor's license shall demonstrate to the division and the commission the
             1144      applicant's or licensee's financial responsibility before the issuance of or the renewal or
             1145      reinstatement of a license by:
             1146          (a) (i) completing a questionnaire developed by the division; and
             1147          (ii) signing the questionnaire, certifying that the information provided is true and
             1148      accurate; or
             1149          (b) submitting a bond in an amount and form determined by the commission with the
             1150      concurrence of the director.
             1151          (2) The division may audit an applicant's or licensee's demonstration of financial
             1152      responsibility on a random basis or upon finding of a reasonable need.
             1153          (3) The burden to demonstrate financial responsibility is upon the applicant or licensee.
             1154          (4) (a) If an applicant for licensure as a contractor or a licensee applying for renewal or
             1155      reinstatement of a contractor's license is an unincorporated entity, the division may require each
             1156      individual who holds an ownership interest in the applicant or licensee to demonstrate financial
             1157      responsibility to the division and the commission.
             1158          (b) In accordance with Subsection (2), the division may audit an owner's demonstration
             1159      of financial responsibility under Subsection (4)(a) at any time including requesting:
             1160          (i) the applicant or licensee to provide a current list of owners meeting the
             1161      requirements of Subsection 58-55-302 (1)(e)(iv); and
             1162          (ii) a credit report for each owner.
             1163          (c) If an owner described in Subsection (4)(a) fails to demonstrate financial
             1164      responsibility under this section, the division may:
             1165          (i) prohibit the licensee from engaging in a construction trade; or
             1166          (ii) require the applicant or licensee to submit a bond in an amount and form
             1167      determined by the commission with the concurrence of the director.
             1168          Section 9. Section 58-55-401 is amended to read:
             1169           58-55-401. Grounds for denial of license and disciplinary proceedings.
             1170          [The] (1) In accordance with Section 58-1-401 , the division may:
             1171          (a) refuse to issue a license to an applicant;
             1172          (b) refuse to renew the license of a licensee;


             1173          (c) revoke the right of a licensee to recover from the Residence Lien Recovery Fund
             1174      created by Section 38-11-201 ;
             1175          (d) revoke, suspend, restrict, or place on probation the license of a licensee;
             1176          (e) issue a public or private reprimand to a licensee; and
             1177          (f) issue a cease and desist orders order[, in accordance with Section 58-1-401 ].
             1178          (2) In addition to an action taken under Subsection (1), the division may take an action
             1179      described in Subsection 58-1-401 (2) in relation to a license as a contractor, if:
             1180          (a) the applicant or licensee is an unincorporated entity; and
             1181          (b) an individual who holds an ownership interest in the applicant or licensee engages
             1182      in:
             1183          (i) unlawful conduct as described in Section 58-55-501 ; or
             1184          (ii) unprofessional conduct as described in Section 58-55-502 .
             1185          Section 10. Section 58-55-501 is amended to read:
             1186           58-55-501. Unlawful conduct.
             1187          Unlawful conduct includes:
             1188          (1) engaging in a construction trade, acting as a contractor, an alarm business or
             1189      company, or an alarm company agent, or representing oneself to be engaged in a construction
             1190      trade or to be acting as a contractor in a construction trade requiring licensure, unless the
             1191      person doing any of these is appropriately licensed or exempted from licensure under this
             1192      chapter;
             1193          (2) acting in a construction trade, as an alarm business or company, or as an alarm
             1194      company agent beyond the scope of the license held;
             1195          (3) hiring or employing in any manner an unlicensed person, other than an employee
             1196      for wages who is not required to be licensed under this chapter, to engage in a construction
             1197      trade for which licensure is required or to act as a contractor or subcontractor in a construction
             1198      trade requiring licensure;
             1199          (4) applying for or obtaining a building permit either for oneself or another when not
             1200      licensed or exempted from licensure as a contractor under this chapter;
             1201          (5) issuing a building permit to any person for whom there is no evidence of a current
             1202      license or exemption from licensure as a contractor under this chapter;
             1203          (6) applying for or obtaining a building permit for the benefit of or on behalf of any


             1204      other person who is required to be licensed under this chapter but who is not licensed or is
             1205      otherwise not entitled to obtain or receive the benefit of the building permit;
             1206          (7) failing to obtain a building permit when required by law or rule;
             1207          (8) submitting a bid for any work for which a license is required under this chapter by a
             1208      person not licensed or exempted from licensure as a contractor under this chapter;
             1209          (9) willfully or deliberately misrepresenting or omitting a material fact in connection
             1210      with an application to obtain or renew a license under this chapter;
             1211          (10) allowing one's license to be used by another except as provided by statute or rule;
             1212          (11) doing business under a name other than the name appearing on the license, except
             1213      as permitted by statute or rule;
             1214          (12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
             1215      journeyman plumber, residential journeyman plumber, journeyman electrician, master
             1216      electrician, or residential electrician, failing to directly supervise an apprentice under one's
             1217      supervision or exceeding the number of apprentices one is allowed to have under [his] the
             1218      speciality contractor's supervision;
             1219          (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
             1220      funds in payment for a specific project from an owner or any other person, which funds are to
             1221      pay for work performed or materials and services furnished for that specific project, and after
             1222      receiving the funds to exercise unauthorized control over the funds by failing to pay the full
             1223      amounts due and payable to persons who performed work or furnished materials or services
             1224      within a reasonable period of time;
             1225          (14) employing an unlicensed alarm business or company or an unlicensed individual
             1226      as an alarm company agent, except as permitted under the exemption from licensure provisions
             1227      under Section 58-1-307 ;
             1228          (15) if licensed as an alarm company or alarm company agent, filing with the division
             1229      fingerprint cards for an applicant which are not those of the applicant, or are in any other way
             1230      false or fraudulent and intended to mislead the division in its consideration of the applicant for
             1231      licensure;
             1232          (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
             1233          (a) the building or construction laws of this state or any political subdivision;
             1234          (b) the safety and labor laws applicable to a project;


             1235          (c) any provision of the health laws applicable to a project;
             1236          (d) the workers' compensation insurance laws of the state applicable to a project;
             1237          (e) the laws governing withholdings for employee state and federal income taxes,
             1238      unemployment taxes, [FICA] Social Security payroll taxes, or other required withholdings; or
             1239          (f) reporting, notification, and filing laws of this state or the federal government;
             1240          (17) aiding or abetting any person in evading the provisions of this chapter or rules
             1241      established under the authority of the division to govern this chapter;
             1242          (18) engaging in the construction trade or as a contractor for the construction of
             1243      residences of up to two units when not currently registered or exempt from registration as a
             1244      qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
             1245      Fund Act;
             1246          (19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
             1247      written contract the notification required in Section 38-11-108 ;
             1248          (20) wrongfully filing a mechanics' lien in violation of Section 38-1-25 ;
             1249          (21) if licensed as a contractor, not completing the approved continuing education
             1250      required under Section 58-55-302.5 ;
             1251          (22) an alarm company allowing an employee with a temporary license under Section
             1252      58-55-312 to engage in conduct on behalf of the company outside the scope of the temporary
             1253      license, as provided in Subsection 58-55-312 (3)(a)(ii); [and]
             1254          (23) an alarm company agent under a temporary license under Section 58-55-312
             1255      engaging in conduct outside the scope of the temporary license, as provided in Subsection
             1256      58-55-312 (3)(a)(ii)[.];
             1257          (24) (a) an unincorporated entity licensed under this chapter having an individual who
             1258      owns an interest in the unincorporated entity engage in a construction trade in Utah while not
             1259      lawfully present in the United States; or
             1260          (b) an unincorporated entity providing labor to an entity licensed under this chapter by
             1261      providing an individual who owns an interest in the unincorporated entity to engage in a
             1262      construction trade in Utah while not lawfully present in the United States; or
             1263          (25) an unincorporated entity failing to provide the following for an individual who
             1264      engages, or will engage, in a construction trade in Utah for the unincorporated entity, or for an
             1265      individual who engages, or will engage, in a construction trade in Utah for a separate entity for


             1266      which the unincorporated entity provides the individual as labor:
             1267          (a) workers' compensation coverage:
             1268          (i) to the extent required by Title 34A, Chapter 2, Workers' Compensation Act, and
             1269      Title 34A, Chapter 3, Utah Occupational Disease Act; or
             1270          (ii) that would be required under the chapters listed in Subsection (25)(a)(i) if the
             1271      unincorporated entity were licensed under this chapter; and
             1272          (b) unemployment compensation in accordance with Title 35A, Chapter 4,
             1273      Employment Security Act, for an individual who owns, directly or indirectly, less than a 8%
             1274      interest in the unincorporated entity, as defined by rule made by the division in accordance with
             1275      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1276          Section 11. Section 58-55-502 is amended to read:
             1277           58-55-502. Unprofessional conduct.
             1278          Unprofessional conduct includes:
             1279          (1) failing to establish, maintain, or demonstrate financial responsibility while licensed
             1280      as a contractor under this chapter;
             1281          (2) disregarding or violating through gross negligence or a pattern of negligence:
             1282          (a) the building or construction laws of this state or any political subdivision;
             1283          (b) the safety and labor laws applicable to a project;
             1284          (c) any provision of the health laws applicable to a project;
             1285          (d) the workers' compensation insurance laws of this state applicable to a project;
             1286          (e) the laws governing withholdings for employee state and federal income taxes,
             1287      unemployment taxes, [FICA] Social Security payroll taxes, or other required withholdings; or
             1288          (f) any reporting, notification, and filing laws of this state or the federal government;
             1289          (3) any willful, fraudulent, or deceitful act by a licensee, caused by a licensee, or at a
             1290      licensee's direction which causes material injury to another;
             1291          (4) contract violations that pose a threat or potential threat to the public health, safety,
             1292      and welfare including:
             1293          (a) willful, deliberate, or grossly negligent departure from or disregard for plans or
             1294      specifications, or abandonment or failure to complete a project without the consent of the
             1295      owner or [his] the owner's duly authorized representative or the consent of any other person
             1296      entitled to have the particular project completed in accordance with the plans, specifications,


             1297      and contract terms;
             1298          (b) failure to deposit funds to the benefit of an employee as required under any written
             1299      contractual obligation the licensee has to the employee;
             1300          (c) failure to maintain in full force and effect any health insurance benefit to an
             1301      employee that was extended as a part of any written contractual obligation or representation by
             1302      the licensee, unless the employee is given written notice of the licensee's intent to cancel or
             1303      reduce the insurance benefit at least 45 days before the effective date of the cancellation or
             1304      reduction;
             1305          (d) failure to reimburse the Residence Lien Recovery Fund as required by Section
             1306      38-11-207 ;
             1307          (e) failure to provide, when applicable, the information required by Section 38-11-108 ;
             1308      and
             1309          (f) willfully or deliberately misrepresenting or omitting a material fact in connection
             1310      with an application to claim recovery from the Residence Lien Recovery Fund under Section
             1311      38-11-204 ;
             1312          (5) failing as an alarm company to notify the division of the cessation of performance
             1313      of its qualifying agent, or failing to replace its qualifying agent as required under Section
             1314      58-55-304 ;
             1315          (6) failing as an alarm company agent to carry or display a copy of the licensee's
             1316      license as required under Section 58-55-311 ; [or]
             1317          (7) failing to comply with operating standards established by rule in accordance with
             1318      Section 58-55-308 [.];
             1319          (8) an unincorporated entity licensed under this chapter having an individual who owns
             1320      an interest in the unincorporated entity engage in a construction trade in Utah while not
             1321      lawfully present in the United States; or
             1322          (9) an unincorporated entity failing to provide the following for an individual who
             1323      engages, or will engage, in a construction trade in Utah for the unincorporated entity:
             1324          (a) workers' compensation coverage to the extent required by Title 34A, Chapter 2,
             1325      Workers' Compensation Act, and Title 34A, Chapter 3, Utah Occupational Disease Act; and
             1326          (b) unemployment compensation in accordance with Title 35A, Chapter 4,
             1327      Employment Security Act, for an individual who owns, directly or indirectly, less than a 8%


             1328      interest in the unincorporated entity, as defined by rule made by the division in accordance with
             1329      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1330          Section 12. Section 58-55-503 is amended to read:
             1331           58-55-503. Penalty for unlawful conduct -- Citations.
             1332          (1) (a) (i) A person who violates Subsection 58-55-308 (2), Subsection 58-55-501 (1),
             1333      (2), (3), (4), (5), (6), (7), (9), (10), (12), (14), (15), (22), [or] (23), (24), or (25), or Subsection
             1334      58-55-504 (2), or who fails to comply with a citation issued under this section after it is final, is
             1335      guilty of a class A misdemeanor.
             1336          (ii) As used in this section in reference to Subsection 58-55-504 (2), "person" means an
             1337      individual and does not include a sole proprietorship, joint venture, corporation, limited
             1338      liability company, association, or organization of any type.
             1339          (b) A person who violates the provisions of Subsection 58-55-501 (8) may not be
             1340      awarded and may not accept a contract for the performance of the work.
             1341          (2) A person who violates the provisions of Subsection 58-55-501 (13) is guilty of an
             1342      infraction unless the violator did so with the intent to deprive the person to whom money is to
             1343      be paid of the money received, in which case the violator is guilty of theft, as classified in
             1344      Section 76-6-412 .
             1345          (3) Grounds for immediate suspension of the licensee's license by the division and the
             1346      commission include the issuance of a citation for violation of Subsection 58-55-308 (2), Section
             1347      58-55-501 , or Subsection 58-55-504 (2), or the failure by a licensee to make application to,
             1348      report to, or notify the division with respect to any matter for which application, notification, or
             1349      reporting is required under this chapter or rules adopted under this chapter, including applying
             1350      to the division for a new license to engage in a new specialty classification or to do business
             1351      under a new form of organization or business structure, filing with the division current
             1352      financial statements, notifying the division concerning loss of insurance coverage, or change in
             1353      qualifier.
             1354          (4) (a) If upon inspection or investigation, the division concludes that a person has
             1355      violated the provisions of Subsection 58-55-308 (2) or Subsections 58-55-501 (1), (2), (3), (9),
             1356      (10), (12), (14), (19), (21), (22), [or] (23), (24), or (25), or Subsection 58-55-504 (2), or any rule
             1357      or order issued with respect to these subsections, and that disciplinary action is appropriate, the
             1358      director or the director's designee from within the division shall promptly issue a citation to the


             1359      person according to this chapter and any pertinent rules, attempt to negotiate a stipulated
             1360      settlement, or notify the person to appear before an adjudicative proceeding conducted under
             1361      Title 63G, Chapter 4, Administrative Procedures Act.
             1362          (i) A person who is in violation of the provisions of Subsection 58-55-308 (2),
             1363      Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19), (21), (22), [or] (23), (24), or (25),
             1364      or Subsection 58-55-504 (2), as evidenced by an uncontested citation, a stipulated settlement, or
             1365      by a finding of violation in an adjudicative proceeding, may be assessed a fine pursuant to this
             1366      Subsection (4) and may, in addition to or in lieu of, be ordered to cease and desist from
             1367      violating Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19),
             1368      [or] (21), (24), or (25), or Subsection 58-55-504 (2).
             1369          (ii) Except for a cease and desist order, the licensure sanctions cited in Section
             1370      58-55-401 may not be assessed through a citation.
             1371          [(iii) (A) A person who receives a citation or is fined for violating Subsection
             1372      58-55-501 (21) may also be issued a cease and desist order from engaging in work to be
             1373      performed by a contractor licensed under this chapter unless the person meets the continuing
             1374      education requirement within 30 days after receipt of the citation or fine.]
             1375          [(B) The order, if issued, shall be removed upon the person's completion of the
             1376      continuing education requirement.]
             1377          [(C) This Subsection (4)(a)(iii) is repealed effective July 1, 2010.]
             1378          (b) (i) [Each] A citation shall be in writing and describe with particularity the nature of
             1379      the violation, including a reference to the provision of the chapter, rule, or order alleged to have
             1380      been violated.
             1381          (ii) [The] A citation shall clearly state that the recipient must notify the division in
             1382      writing within 20 calendar days of service of the citation if the recipient wishes to contest the
             1383      citation at a hearing conducted under Title 63G, Chapter 4, Administrative Procedures Act.
             1384          (iii) [The] A citation shall clearly explain the consequences of failure to timely contest
             1385      the citation or to make payment of any fines assessed by the citation within the time specified
             1386      in the citation.
             1387          (c) [Each] A citation issued under this section, or a copy of [each] a citation, may be
             1388      served upon a person upon whom a summons may be served:
             1389          (i) in accordance with the Utah Rules of Civil Procedure;


             1390          (ii) personally or upon the person's agent by a division investigator or by a person
             1391      specially designated by the director; or
             1392          (iii) by mail.
             1393          (d) (i) If within 20 calendar days from the service of a citation, the person to whom the
             1394      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             1395      final order of the division and is not subject to further agency review.
             1396          (ii) The period to contest a citation may be extended by the division for cause.
             1397          (e) The division may refuse to issue or renew, suspend, revoke, or place on probation
             1398      the license of a licensee who fails to comply with a citation after it becomes final.
             1399          (f) The failure of an applicant for licensure to comply with a citation after it becomes
             1400      final is a ground for denial of license.
             1401          (g) [No] A citation may not be issued under this section after the expiration of six
             1402      months following the occurrence of [any] a violation.
             1403          (h) [Fines shall be assessed by the] The director or the director's designee [according
             1404      to] shall assess a fine in accordance with the following:
             1405          (i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
             1406          (ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000;
             1407      and
             1408          (iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to
             1409      $2,000 for each day of continued offense.
             1410          (i) (i) For purposes of issuing a final order under this section and assessing a fine under
             1411      Subsection (4)(h), an offense constitutes a second or subsequent offense if:
             1412          (A) the division previously issued a final order determining that a person committed a
             1413      first or second offense in violation of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2),
             1414      (3), (9), (10), (12), (14), [or] (19), (24), or (25), or Subsection 58-55-504 (2); or
             1415          (B) (I) the division initiated an action for a first or second offense;
             1416          (II) [no] a final order has not been issued by the division in the action initiated under
             1417      Subsection (4)(i)(i)(B)(I);
             1418          (III) the division determines during an investigation that occurred after the initiation of
             1419      the action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent
             1420      violation of the provisions of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9),


             1421      (10), (12), (14), [or] (19), (24), or (25), or Subsection 58-55-504 (2); and
             1422          (IV) after determining that the person committed a second or subsequent offense under
             1423      Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under
             1424      Subsection (4)(i)(i)(B)(I).
             1425          (ii) In issuing a final order for a second or subsequent offense under Subsection
             1426      (4)(i)(i), the division shall comply with the requirements of this section.
             1427          (j) In addition to any other licensure sanction or fine imposed under this section, the
             1428      division shall revoke the license of a licensee that violates Subsection 58-55-501 (24) or (25)
             1429      two or more times within a 12-month period, unless, with respect to a violation of Subsection
             1430      58-55-501 (24), the licensee can demonstrate that the licensee successfully verified the federal
             1431      legal working status of the individual who was the subject of the violation using a status
             1432      verification system, as defined in Section 13-47-102 .
             1433          (k) For purposes of this Subsection (4), a violation of Subsection 58-55-501 (24) or (25)
             1434      for each individual is considered a separate violation.
             1435          (5) (a) A penalty imposed by the director under Subsection (4)(h) shall be deposited
             1436      into the Commerce Service Account created by Section 13-1-2 .
             1437          (b) A penalty [which] that is not paid may be collected by the director by either
             1438      referring the matter to a collection agency or bringing an action in the district court of the
             1439      county in which the person against whom the penalty is imposed resides or in the county where
             1440      the office of the director is located.
             1441          (c) A county attorney or the attorney general of the state is to provide legal assistance
             1442      and advice to the director in any action to collect the penalty.
             1443          (d) In an action brought to enforce the provisions of this section, reasonable [attorney's]
             1444      attorney fees and costs shall be awarded.
             1445          Section 13. Section 63G-2-302 is amended to read:
             1446           63G-2-302. Private records.
             1447          (1) The following records are private:
             1448          (a) records concerning an individual's eligibility for unemployment insurance benefits,
             1449      social services, welfare benefits, or the determination of benefit levels;
             1450          (b) records containing data on individuals describing medical history, diagnosis,
             1451      condition, treatment, evaluation, or similar medical data;


             1452          (c) records of publicly funded libraries that when examined alone or with other records
             1453      identify a patron;
             1454          (d) records received by or generated by or for:
             1455          (i) the Independent Legislative Ethics Commission, except for:
             1456          (A) the commission's summary data report that is required under legislative rule; and
             1457          (B) any other document that is classified as public under legislative rule; or
             1458          (ii) a Senate or House Ethics Committee in relation to the review of ethics complaints,
             1459      unless the record is classified as public under legislative rule;
             1460          (e) records received or generated for a Senate confirmation committee concerning
             1461      character, professional competence, or physical or mental health of an individual:
             1462          (i) if prior to the meeting, the chair of the committee determines release of the records:
             1463          (A) reasonably could be expected to interfere with the investigation undertaken by the
             1464      committee; or
             1465          (B) would create a danger of depriving a person of a right to a fair proceeding or
             1466      impartial hearing; and
             1467          (ii) after the meeting, if the meeting was closed to the public;
             1468          (f) employment records concerning a current or former employee of, or applicant for
             1469      employment with, a governmental entity that would disclose that individual's home address,
             1470      home telephone number, Social Security number, insurance coverage, marital status, or payroll
             1471      deductions;
             1472          (g) records or parts of records under Section 63G-2-303 that a current or former
             1473      employee identifies as private according to the requirements of that section;
             1474          (h) that part of a record indicating a person's Social Security number or federal
             1475      employer identification number if provided under Section 31A-23a-104 , 31A-25-202 ,
             1476      31A-26-202 , 58-1-301 , 58-55-302 , 61-1-4 , or 61-2f-203 ;
             1477          (i) that part of a voter registration record identifying a voter's driver license or
             1478      identification card number, Social Security number, or last four digits of the Social Security
             1479      number;
             1480          (j) a record that:
             1481          (i) contains information about an individual;
             1482          (ii) is voluntarily provided by the individual; and


             1483          (iii) goes into an electronic database that:
             1484          (A) is designated by and administered under the authority of the Chief Information
             1485      Officer; and
             1486          (B) acts as a repository of information about the individual that can be electronically
             1487      retrieved and used to facilitate the individual's online interaction with a state agency;
             1488          (k) information provided to the Commissioner of Insurance under:
             1489          (i) Subsection 31A-23a-115 (2)(a);
             1490          (ii) Subsection 31A-23a-302 (3); or
             1491          (iii) Subsection 31A-26-210 (3);
             1492          (l) information obtained through a criminal background check under Title 11, Chapter
             1493      40, Criminal Background Checks by Political Subdivisions Operating Water Systems;
             1494          (m) information provided by an offender that is:
             1495          (i) required by the registration requirements of Section 77-27-21.5 ; and
             1496          (ii) not required to be made available to the public under Subsection 77-27-21.5 (27);
             1497      and
             1498          (n) a statement and any supporting documentation filed with the attorney general in
             1499      accordance with Section 34-45-107 , if the federal law or action supporting the filing involves
             1500      homeland security.
             1501          (2) The following records are private if properly classified by a governmental entity:
             1502          (a) records concerning a current or former employee of, or applicant for employment
             1503      with a governmental entity, including performance evaluations and personal status information
             1504      such as race, religion, or disabilities, but not including records that are public under Subsection
             1505      63G-2-301 (2)(b) or 63G-2-301 (3)(o), or private under Subsection (1)(b);
             1506          (b) records describing an individual's finances, except that the following are public:
             1507          (i) records described in Subsection 63G-2-301 (2);
             1508          (ii) information provided to the governmental entity for the purpose of complying with
             1509      a financial assurance requirement; or
             1510          (iii) records that must be disclosed in accordance with another statute;
             1511          (c) records of independent state agencies if the disclosure of those records would
             1512      conflict with the fiduciary obligations of the agency;
             1513          (d) other records containing data on individuals the disclosure of which constitutes a


             1514      clearly unwarranted invasion of personal privacy;
             1515          (e) records provided by the United States or by a government entity outside the state
             1516      that are given with the requirement that the records be managed as private records, if the
             1517      providing entity states in writing that the record would not be subject to public disclosure if
             1518      retained by it; and
             1519          (f) any portion of a record in the custody of the Division of Aging and Adult Services,
             1520      created in Section 62A-3-102 , that may disclose, or lead to the discovery of, the identity of a
             1521      person who made a report of alleged abuse, neglect, or exploitation of a vulnerable adult.
             1522          (3) (a) As used in this Subsection (3), "medical records" means medical reports,
             1523      records, statements, history, diagnosis, condition, treatment, and evaluation.
             1524          (b) Medical records in the possession of the University of Utah Hospital, its clinics,
             1525      doctors, or affiliated entities are not private records or controlled records under Section
             1526      63G-2-304 when the records are sought:
             1527          (i) in connection with any legal or administrative proceeding in which the patient's
             1528      physical, mental, or emotional condition is an element of any claim or defense; or
             1529          (ii) after a patient's death, in any legal or administrative proceeding in which any party
             1530      relies upon the condition as an element of the claim or defense.
             1531          (c) Medical records are subject to production in a legal or administrative proceeding
             1532      according to state or federal statutes or rules of procedure and evidence as if the medical
             1533      records were in the possession of a nongovernmental medical care provider.
             1534          Section 14. Section 63G-11-104 is amended to read:
             1535           63G-11-104. Receipt of state, local, or federal public benefits -- Verification --
             1536      Exceptions -- Fraudulently obtaining benefits -- Criminal penalties -- Annual report.
             1537          (1) As used in this section, "federal program" means the Systematic Alien Verification
             1538      for Entitlements Program operated by the United States Department of Homeland Security or
             1539      an equivalent program designated by the Department of Homeland Security.
             1540          (2) (a) Except as provided in Subsection (4) or when exempted by federal law, an
             1541      agency or political subdivision of the state shall verify the lawful presence in the United States
             1542      of an individual at least 18 years of age who applies for:
             1543          [(a)] (i) a state or local public benefit as defined in 8 U.S.C. Sec. 1621; or
             1544          [(b)] (ii) a federal public benefit as defined in 8 U.S.C. Sec. 1611, that is administered


             1545      by an agency or political subdivision of this state.
             1546          (b) For purpose of a license issued under Title 58, Chapter 55, Utah Construction
             1547      Trades Licensing Act, to an applicant that is an unincorporated entity, the Department of
             1548      Commerce shall verify in accordance with this Subsection (2) the lawful presence in the United
             1549      States of each individual who:
             1550          (i) owns an interest in the contractor that is an unincorporated entity; and
             1551          (ii) engages, or will engage, in a construction trade in Utah as an owner of the
             1552      contractor described in Subsection (2)(b)(i).
             1553          (3) This section shall be enforced without regard to race, religion, gender, ethnicity, or
             1554      national origin.
             1555          (4) Verification of lawful presence under this section is not required for:
             1556          (a) any purpose for which lawful presence in the United States is not restricted by law,
             1557      ordinance, or regulation;
             1558          (b) assistance for health care items and services that:
             1559          (i) are necessary for the treatment of an emergency medical condition, as defined in 42
             1560      U.S.C. Sec. 1396b(v)(3), of the individual involved; and
             1561          (ii) are not related to an organ transplant procedure;
             1562          (c) short-term, noncash, in-kind emergency disaster relief;
             1563          (d) public health assistance for immunizations with respect to immunizable diseases
             1564      and for testing and treatment of symptoms of communicable diseases whether or not the
             1565      symptoms are caused by the communicable disease;
             1566          (e) programs, services, or assistance such as soup kitchens, crisis counseling and
             1567      intervention, and short-term shelter, specified by the United States Attorney General, in the
             1568      sole and unreviewable discretion of the United States Attorney General after consultation with
             1569      appropriate federal agencies and departments, that:
             1570          (i) deliver in-kind services at the community level, including through public or private
             1571      nonprofit agencies;
             1572          (ii) do not condition the provision of assistance, the amount of assistance provided, or
             1573      the cost of assistance provided on the income or resources of the individual recipient; and
             1574          (iii) are necessary for the protection of life or safety;
             1575          (f) the exemption for paying the nonresident portion of total tuition as set forth in


             1576      Section 53B-8-106 ;
             1577          (g) an applicant for a license under Section 61-1-4 , if the applicant:
             1578          (i) is registered with the Financial Industry Regulatory Authority; and
             1579          (ii) files an application with the state Division of Securities through the Central
             1580      Registration Depository;
             1581          (h) a state public benefit to be given to an individual under Title 49, Utah State
             1582      Retirement and Insurance Benefit Act;
             1583          (i) a home loan that will be insured, guaranteed, or purchased by:
             1584          (i) the Federal Housing Administration, the Veterans Administration, or any other
             1585      federal agency; or
             1586          (ii) an enterprise as defined in 12 U.S.C. Sec. 4502;
             1587          (j) a subordinate loan or a grant that will be made to an applicant in connection with a
             1588      home loan that does not require verification under Subsection (4)(i); and
             1589          (k) an applicant for a license issued by the Department of Commerce or individual
             1590      described in Subsection (2)(b), if the applicant or individual provides the Department of
             1591      Commerce:
             1592          (i) certification, under penalty of perjury, that the applicant or individual is:
             1593          (A) a United States citizen;
             1594          (B) a qualified alien as defined in 8 U.S.C. Sec. 1641; or
             1595          (C) lawfully present in the United States; and
             1596          [(ii) a valid driver license number for a driver license issued by:]
             1597          [(A) Utah; or]
             1598          (ii) the number for a driver license or identification card issued:
             1599          (A) under Title 53, Chapter 3, Uniform Driver License Act; or
             1600          (B) by a state other than Utah that as part of issuing the driver license or identification
             1601      card verifies an individual's lawful presence in the United States.
             1602          (5) An agency or political subdivision required to verify the lawful presence in the
             1603      United States of an applicant under this section shall require the applicant to certify under
             1604      penalty of perjury that:
             1605          (a) the applicant is a United States citizen; or
             1606          (b) the applicant is:


             1607          (i) a qualified alien as defined in 8 U.S.C. Sec. 1641; and
             1608          (ii) lawfully present in the United States.
             1609          (6) An agency or political subdivision shall verify a certification required under
             1610      Subsection (5)(b) through the federal program.
             1611          (7) (a) An individual who knowingly and willfully makes a false, fictitious, or
             1612      fraudulent statement or representation in a certification under Subsection (4)(k) or (5) is subject
             1613      to the criminal penalties applicable in this state for:
             1614          (i) making a written false statement under Subsection 76-8-504 (2); and
             1615          (ii) fraudulently obtaining:
             1616          (A) public assistance program benefits under Sections 76-8-1205 and 76-8-1206 ; or
             1617          (B) unemployment compensation under Section 76-8-1301 .
             1618          (b) If the certification constitutes a false claim of United States citizenship under 18
             1619      U.S.C. Sec. 911, the agency or political subdivision shall file a complaint with the United
             1620      States Attorney General for the applicable district based upon the venue in which the
             1621      application was made.
             1622          (8) An agency or political subdivision may adopt variations to the requirements of this
             1623      section that:
             1624          (a) clearly improve the efficiency of or reduce delay in the verification process; or
             1625          (b) provide for adjudication of unique individual circumstances where the verification
             1626      procedures in this section would impose an unusual hardship on a legal resident of Utah.
             1627          (9) It is unlawful for an agency or a political subdivision of this state to provide a state,
             1628      local, or federal benefit, as defined in 8 U.S.C. Sec. 1611 and 1621, in violation of this section.
             1629          (10) A state agency or department that administers a program of state or local public
             1630      benefits shall:
             1631          (a) provide an annual report to the governor, the president of the Senate, and the
             1632      speaker of the House regarding its compliance with this section; and
             1633          (b) (i) monitor the federal program for application verification errors and significant
             1634      delays;
             1635          (ii) provide an annual report on the errors and delays to ensure that the application of
             1636      the federal program is not erroneously denying a state or local benefit to a legal resident of the
             1637      state; and


             1638          (iii) report delays and errors in the federal program to the United States Department of
             1639      Homeland Security.
             1640          Section 15. Effective date.
             1641          This bill takes effect on July 1, 2011.


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