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MINUTES OF THE HOUSE BUSINESS AND LABOR
STANDING COMMITTEE
Room 450, State Capitol, Utah State Capitol Complex
February 2, 2011

Members Present:    Rep. Jim Dunnigan, Chair
            Rep. Dixon Pitcher, Vice Chair                        
            Rep. Jim Bird
            Rep. Jackie Biskupski
            Rep. Derek Brown
            Rep. Susan Duckworth            
            Rep. Gage Froerer
            
Rep. Francis Gibson
            
Rep. Don Ipson             
            
Rep. Todd Kiser
            Rep. Brad Last
            Rep. Michael Morley            
            Rep. Curt Webb
            
Rep. Larry Wiley
             
Staff Present:        Bryant Howe, Assistant Director            
            Rosemary Young, Committee Secretary

Note:        List of visitors and a copy of handouts are filed with committee minutes.

Rep. Dunnigan called the meeting to order at 2:03 p.m.

MOTION:    Rep. Pitcher moved to approve the minutes of the February 1, 2011 meeting. The motion passed unanimously with Rep. Duckworth, Rep. Gibson, Rep. Ipson, and Rep. Kiser absent for the vote.

H.B. 237    Enforcement of Liens (Rep. Julie Fisher)

Rep. Fisher explained the bill to the committee.

MOTION:    Rep. Bird moved to transmit H.B. 237 with a favorable recommendation. The motion passed unanimously with Rep. Duckworth, Rep. Gibson, Rep. Ipson, Rep. Morley, and Rep. Wiley absent for the vote.

MOTION:    Rep. Biskupski moved to place H.B. 237 on the Consent Calendar. The motion passed unanimously with Rep. Duckworth, Rep. Gibson, Rep. Ipson, Rep. Kiser, Rep. Morley, and Rep. Wiley absent for the vote.

1st Sub. S.B. 11    Worker Classification Coordinated Enforcement (Sen. K. Mayne) (Rep. T. Kiser)

Sen. Mayne explained the bill to the committee.

MOTION:    Rep. Wiley moved to transmit 1st Substitute S.B. 11 with a favorable recommendation. The motion passed unanimously with Rep. Duckworth and Rep. Froerer absent for the vote.

1st Sub. S.B. 35    Construction Licensees Related Amendments (Sen. K. Mayne) (Rep. T. Kiser)


Sen. Mayne explained the bill to the committee assisted by David Spatafore, Coalition for a Stronger Utah Economy, who distributed a handout.

MOTION:    Rep. Morley moved to amend 1st Substitute S.B. 35 as follows:

1.    Page 3, Line 64 :    

             64      be the employer of each
{   member of   }        individual who, directly or indirectly, holds an ownership interest in       the unincorporated entity.


2.    Page 3, Lines 67 through 77 :    

             67      under Subsection (2)(a) for
{   a member   }        an individual       by establishing by clear and convincing evidence that the

             68     
{   member   }        individual       :

             69          (i) is an active manager of the unincorporated entity;
             70          (ii) directly or indirectly holds at least a
{   20%   }        8%       ownership interest in the unincorporated

             71      entity; or
             72          (iii) is not subject to supervision or control in the performance of work by:
             73          (A) the unincorporated entity; or
             74          (B) a person with whom the unincorporated entity contracts.
             75          (c) As part of the rules made under Subsection (2)(b), the commission may define:
             76          (i) "active manager";
             77          (ii) "directly or indirectly holds at least a
{   20%   }        8%       ownership interest"; and


3.    Page 12, Line 352 :    

             352      be the employer of each
{   member of   }        individual who, directly or indirectly, holds an ownership interest in       the unincorporated entity.


4.    Page 12, Lines 355 through 365 :    

             355      under Subsection (2)(a) for
{   a member   }        an individual       by establishing by clear and convincing evidence that the

             356     
{   member   }        individual       :

             357          (i) is an active manager of the unincorporated entity;
             358          (ii) directly or indirectly holds at least a
{   20%   }        8%       ownership interest in the unincorporated

             359      entity; or
             360          (iii) is not subject to supervision or control in the performance of work by:
             361          (A) the unincorporated entity; or
             362          (B) a person with whom the unincorporated entity contracts.


             363          (c) As part of the rules made under Subsection (2)(b), the commission may define:
             364          (i) "active manager";
             365          (ii) "directly or indirectly holds at least a
{   20%   }        8%       ownership interest"; and


5.    Page 14, Line 419 :    

             419      be the employer of each
{   member of   }        individual who, directly or indirectly, holds an ownership interest in       the unincorporated entity.


6.    Page 14, Line 422 through Page 15, Line 432 :    

             422      under Subsection (2)(a) for
{   a member   }        an individual       by establishing by clear and convincing evidence that the

             423     
{   member   }        individual       :

             424          (i) is an active manager of the unincorporated entity;
             425          (ii) directly or indirectly holds at least a
{   20%   }        8%       ownership interest in the unincorporated

             426      entity; or
             427          (iii) is not subject to supervision or control in the performance of work by:
             428          (A) the unincorporated entity; or
             429          (B) a person with whom the unincorporated entity contracts.
             430          (c) As part of the rules made under Subsection (2)(b), the commission may define:
             431          (i) "active manager";
             432          (ii) "directly or indirectly holds at least a
{   20%   }        8%       ownership interest"; and


7.    Page 32, Lines 968 through 972 :    

             968          (10) (a) A licensee that is an unincorporated entity shall file an ownership status report
             969      with the division every 90 days after the day on which the license is issued if the licensee has as
             970      an owner an individual who:
             971          (i) owns an interest in the contractor that is an unincorporated entity;
             972          (ii) owns, directly or indirectly, less than a
{   20%   }        8%       interest in the unincorporated entity, as


8.    Page 37, Lines 1118 through 1121 :    

             1118          (b) unemployment compensation in accordance with Title 35A, Chapter 4,
             1119      Employment Security Act, for an individual who owns, directly or indirectly, less than a
{   20   }        8       %


             1120
     interest in the unincorporated entity, as defined by rule made by the division in accordance with
             1121      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

9.    Page 38, Lines 1165 through 1167 :    

             1165          (8) an unincorporated entity licensed under this chapter
  through a pattern of negligence       having an individual who owns

             1166      an interest in the unincorporated entity engage in a construction trade in Utah while not
             1167      lawfully present in the United States; or

10.    Page 38, Line 1172 through Page 39, Line 1175 :    

             1172          (b) unemployment compensation in accordance with Title 35A, Chapter 4,
             1173      Employment Security Act, for an individual who owns, directly or indirectly, less than a
{   20   }        8       %

             1174      interest in the unincorporated entity, as defined by rule made by the division in accordance with
             1175      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

11.    Page 42, Lines 1273 through 1277 :    

             1273          (j) In addition to any other licensure sanction or fine imposed under this section, the
             1274      division shall revoke the license of a licensee that violates Subsection 58-55-501 (24) or (25)
             1275      two or more times within a 12-month period
{   .   }        , unless, with respect to a violation of Subsection 58-55-501 (24), the licensee can demonstrate that the licensee successfully verified the federal legal working status of the individual who was the subject of the violation using a status verification system, as defined in Section 13-47-102.      

             1276          (k) For purposes of this Subsection (4), a violation of Subsection 58-55-501 (24) or (25)
             1277      for each individual is considered a separate violation.
The motion passed unanimously.

The following individuals spoke in favor of the bill:

        Darrel Bostwick, Atty.            Bostwick & Price, P.C.
        Richard Thorn                Associated General Contractors
        Michael Sanchez            Eagle Forum, IMS Masonry
        Dennis Chavez                Chavez L.L.C.
        Rob Bay                CSG Workforce Partners, L.L.C.
        Weston Lunsford            CSG Workforce Partners, L.L.C.


MOTION:    Rep. Kiser moved to transmit 1st Substitute S.B. 35 with a favorable recommendation. The motion passed unanimously.

H.B. 78    Developer Fees (Rep. M. Morley)

MOTION:    Rep. Morley moved to amend H.B. 78 as follows:


1.    Page 2, Line 53 through Page 3, Line 60 :    

             53          (3) "Billboard" means a freestanding ground sign located on industrial, commercial, or
             54      residential property if the sign is designed or intended to direct attention to a business, product,
             55      or service that is not sold, offered, or existing on the property where the sign is located.
             56          
{   (4) "Building permit fee" means any fee charged to enforce the uniform codes adopted

             57      pursuant to Title 58, Chapter 56, Utah Uniform Building Standards Act, that is no greater than
             58      a fee indicated in the appendix to the International Building Code.  
}

             59          
{   [   } (4)      {   ]   }      {   (5)   } "Charter school" includes:

             60          (a) an operating charter school;

And renumber the remaining sections accordingly.


2.    Page 20, Lines 594 through 601 :    

             594          (3) "Billboard" means a freestanding ground sign located on industrial, commercial, or
             595      residential property if the sign is designed or intended to direct attention to a business, product,
             596      or service that is not sold, offered, or existing on the property where the sign is located.
             597          
{   (4) "Building permit fee" means any fee charged to enforce the uniform codes adopted

             598      pursuant to Title 58, Chapter 56, Utah Uniform Building Standards Act, that is no greater than
             599      a fee indicated in the appendix to the International Building Code.  
}

             600          
{   [   } (4)      {   ]   }      {   (5)   } "Charter school" includes:

             601          (a) an operating charter school;

And renumber the remaining sections accordingly.


The motion passed unanimously with Rep. Brown absent for the vote.

Rep. Morley, assisted by Jodi Hoffman, Utah League of Cities and Towns, explained the bill to the committee.

MOTION:    Rep. Wiley moved to transmit H.B. 78 with a favorable recommendation. The motion passed unanimously with Rep. Froerer absent for the vote.

H.B. 243    Occupations and Professions Amendments (Rep. M. Morley)

MOTION:    Rep. Morley moved to amend H.B. 243 as follows:

1.    Page 1, Lines 20 through 21 :    

             20          
{   .    modifies unprofessional conduct provisions and unlawful conduct penalty

             21      provisions;  
}


2.    Page 2, Line 42 :    

             42          
{   58-1-501, as last amended by Laws of Utah 2010, Chapter 180   }


3.    Page 14, Line 411 through Page 17, Line 494 :     Delete Lines 411 through 494

Renumber remaining sections accordingly.

The motion passed unanimously with Rep. Froerer absent for the vote.

Rep. Morley, assisted by Mark Steinagel, Director, Division of Occupational and Professional Licensing, explained the bill to the committee.

MOTION:    Rep. Pitcher moved to transmit H.B. 243 with a favorable recommendation. The motion passed unanimously with Rep. Froerer and Rep. Gibson absent for the vote.

MOTION:    Rep. Kiser moved to adjourn. The motion passed unanimously with Rep. Froerer and Rep. Gibson absent for the vote.

Rep. Dunnigan adjourned the meeting at 3:46 p.m.








                        ________________________________
                         Rep. James Dunnigan, Chair