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S.B. 92 Enrolled

             1     

DEPARTMENT OF COMMERCE LICENSE RELATED

             2     
AMENDMENTS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Karen Mayne

             6     
House Sponsor: Todd E. Kiser

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies provisions related to occupational and professional licensing by the
             11      Department of Commerce.
             12      Highlighted Provisions:
             13          This bill:
             14          .    adds to the information certain applicants are required to provide to obtain a
             15      construction trade license;
             16          .    modifies ownership status reporting requirements;
             17          .    addresses audits of the ownership status reports;
             18          .    adds to information certain unincorporated entities are required to provide regarding
             19      owners;
             20          .    modifies powers of the division if an owner fails to demonstrate financial
             21      responsibility;
             22          .    clarifies language regarding the Department of Commerce receiving driver license
             23      and identification card information; and
             24          .    makes technical and conforming amendments.
             25      Money Appropriated in this Bill:
             26          None
             27      Other Special Clauses:
             28          None
             29      Utah Code Sections Affected:


             30      AMENDS:
             31          58-55-302, as last amended by Laws of Utah 2011, Chapter 413
             32          58-55-306, as last amended by Laws of Utah 2011, Chapter 413
             33          63G-12-402, as last amended by Laws of Utah 2011, Chapter 413 and renumbered and
             34      amended by Laws of Utah 2011, Chapter 18
             35     
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 58-55-302 is amended to read:
             38           58-55-302. Qualifications for licensure.
             39          (1) Each applicant for a license under this chapter shall:
             40          (a) submit an application prescribed by the division;
             41          (b) pay a fee as determined by the department under Section 63J-1-504 ;
             42          (c) (i) meet the examination requirements established by rule by the commission with
             43      the concurrence of the director, except for the classifications of apprentice plumber and
             44      apprentice electrician for whom no examination is required; or
             45          (ii) if required in Section 58-55-304 , the individual qualifier must pass the required
             46      examination if the applicant is a business entity;
             47          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
             48          (e) if an applicant for a contractor's license:
             49          (i) produce satisfactory evidence of financial responsibility, except for a construction
             50      trades instructor for whom evidence of financial responsibility is not required;
             51          (ii) produce satisfactory evidence of knowledge and experience in the construction
             52      industry and knowledge of the principles of the conduct of business as a contractor, reasonably
             53      necessary for the protection of the public health, safety, and welfare;
             54          (iii) (A) be a licensed master electrician if an applicant for an electrical contractor's
             55      license or a licensed master residential electrician if an applicant for a residential electrical
             56      contractor's license;
             57          (B) be a licensed master plumber if an applicant for a plumbing contractor's license or


             58      a licensed master residential plumber if an applicant for a residential plumbing contractor's
             59      license; or
             60          (C) be a licensed elevator mechanic and produce satisfactory evidence of three years
             61      experience as an elevator mechanic if an applicant for an elevator contractor's license; and
             62          (iv) when the applicant is an unincorporated entity, provide a list of the one or more
             63      individuals who hold an ownership interest in the applicant as of the day on which the
             64      application is filed that includes for each individual:
             65          (A) the individual's name, address, [and] birthdate, and Social Security number; and
             66          (B) whether the individual will engage in a construction trade; and
             67          (f) if an applicant for a construction trades instructor license, satisfy any additional
             68      requirements established by rule.
             69          (2) After approval of an applicant for a contractor's license by the applicable board and
             70      the division, the applicant shall file the following with the division before the division issues
             71      the license:
             72          (a) proof of workers' compensation insurance which covers employees of the applicant
             73      in accordance with applicable Utah law;
             74          (b) proof of public liability insurance in coverage amounts and form established by rule
             75      except for a construction trades instructor for whom public liability insurance is not required;
             76      and
             77          (c) proof of registration as required by applicable law with the:
             78          (i) Utah Department of Commerce;
             79          (ii) Division of Corporations and Commercial Code;
             80          (iii) Unemployment Insurance Division in the Department of Workforce Services, for
             81      purposes of Title 35A, Chapter 4, Employment Security Act;
             82          (iv) State Tax Commission; and
             83          (v) Internal Revenue Service.
             84          (3) In addition to the general requirements for each applicant in Subsection (1),
             85      applicants shall comply with the following requirements to be licensed in the following


             86      classifications:
             87          (a) (i) A master plumber shall produce satisfactory evidence that the applicant:
             88          (A) has been a licensed journeyman plumber for at least two years and had two years of
             89      supervisory experience as a licensed journeyman plumber in accordance with division rule;
             90          (B) has received at least an associate of applied science degree or similar degree
             91      following the completion of a course of study approved by the division and had one year of
             92      supervisory experience as a licensed journeyman plumber in accordance with division rule; or
             93          (C) meets the qualifications determined by the division in collaboration with the board
             94      to be equivalent to Subsection (3)(a)(i)(A) or (B).
             95          (ii) An individual holding a valid Utah license as a journeyman plumber, based on at
             96      least four years of practical experience as a licensed apprentice under the supervision of a
             97      licensed journeyman plumber and four years as a licensed journeyman plumber, in effect
             98      immediately prior to May 5, 2008, is on and after May 5, 2008, considered to hold a current
             99      master plumber license under this chapter, and satisfies the requirements of this Subsection
             100      (3)(a) for the purpose of renewal or reinstatement of that license under Section 58-55-303 .
             101          (iii) An individual holding a valid plumbing contractor's license or residential
             102      plumbing contractor's license, in effect immediately prior to May 5, 2008, is on or after May 5,
             103      2008:
             104          (A) considered to hold a current master plumber license under this chapter if licensed
             105      as a plumbing contractor and a journeyman plumber, and satisfies the requirements of this
             106      Subsection (3)(a) for purposes of renewal or reinstatement of that license under Section
             107      58-55-303 ; and
             108          (B) considered to hold a current residential master plumber license under this chapter if
             109      licensed as a residential plumbing contractor and a residential journeyman plumber, and
             110      satisfies the requirements of this Subsection (3)(a) for purposes of renewal or reinstatement of
             111      that license under Section 58-55-303 .
             112          (b) A master residential plumber applicant shall produce satisfactory evidence that the
             113      applicant:


             114          (i) has been a licensed residential journeyman plumber for at least two years and had
             115      two years of supervisory experience as a licensed residential journeyman plumber in
             116      accordance with division rule; or
             117          (ii) meets the qualifications determined by the division in collaboration with the board
             118      to be equivalent to Subsection (3)(b)(i).
             119          (c) A journeyman plumber applicant shall produce satisfactory evidence of:
             120          (i) successful completion of the equivalent of at least four years of full-time training
             121      and instruction as a licensed apprentice plumber under supervision of a licensed master
             122      plumber or journeyman plumber and in accordance with a planned program of training
             123      approved by the division;
             124          (ii) at least eight years of full-time experience approved by the division in collaboration
             125      with the Plumbers Licensing Board; or
             126          (iii) satisfactory evidence of meeting the qualifications determined by the board to be
             127      equivalent to Subsection (3)(c)(i) or (c)(ii).
             128          (d) A residential journeyman plumber shall produce satisfactory evidence of:
             129          (i) completion of the equivalent of at least three years of full-time training and
             130      instruction as a licensed apprentice plumber under the supervision of a licensed residential
             131      master plumber, licensed residential journeyman plumber, or licensed journeyman plumber in
             132      accordance with a planned program of training approved by the division;
             133          (ii) completion of at least six years of full-time experience in a maintenance or repair
             134      trade involving substantial plumbing work; or
             135          (iii) meeting the qualifications determined by the board to be equivalent to Subsection
             136      (3)(d)(i) or (d)(ii).
             137          (e) The conduct of licensed apprentice plumbers and their licensed supervisors shall be
             138      in accordance with the following:
             139          (i) while engaging in the trade of plumbing, a licensed apprentice plumber shall be
             140      under the immediate supervision of a licensed master plumber, licensed residential master
             141      plumber, licensed journeyman plumber, or a licensed residential journeyman plumber; and


             142          (ii) a licensed apprentice plumber in the fourth through tenth year of training may work
             143      without supervision for a period not to exceed eight hours in any 24-hour period, but if the
             144      apprentice does not become a licensed journeyman plumber or licensed residential journeyman
             145      plumber by the end of the tenth year of apprenticeship, this nonsupervision provision no longer
             146      applies.
             147          (f) A master electrician applicant shall produce satisfactory evidence that the applicant:
             148          (i) is a graduate electrical engineer of an accredited college or university approved by
             149      the division and has one year of practical electrical experience as a licensed apprentice
             150      electrician;
             151          (ii) is a graduate of an electrical trade school, having received an associate of applied
             152      sciences degree following successful completion of a course of study approved by the division,
             153      and has two years of practical experience as a licensed journeyman electrician;
             154          (iii) has four years of practical experience as a journeyman electrician; or
             155          (iv) meets the qualifications determined by the board to be equivalent to Subsection
             156      (3)(f)(i), (ii), or (iii).
             157          (g) A master residential electrician applicant shall produce satisfactory evidence that
             158      the applicant:
             159          (i) has at least two years of practical experience as a residential journeyman electrician;
             160      or
             161          (ii) meets the qualifications determined by the board to be equivalent to this practical
             162      experience.
             163          (h) A journeyman electrician applicant shall produce satisfactory evidence that the
             164      applicant:
             165          (i) has successfully completed at least four years of full-time training and instruction as
             166      a licensed apprentice electrician under the supervision of a master electrician or journeyman
             167      electrician and in accordance with a planned training program approved by the division;
             168          (ii) has at least eight years of full-time experience approved by the division in
             169      collaboration with the Electricians Licensing Board; or


             170          (iii) meets the qualifications determined by the board to be equivalent to Subsection
             171      (3)(h)(i) or (ii).
             172          (i) A residential journeyman electrician applicant shall produce satisfactory evidence
             173      that the applicant:
             174          (i) has successfully completed two years of training in an electrical training program
             175      approved by the division;
             176          (ii) has four years of practical experience in wiring, installing, and repairing electrical
             177      apparatus and equipment for light, heat, and power under the supervision of a licensed master,
             178      journeyman, residential master, or residential journeyman electrician; or
             179          (iii) meets the qualifications determined by the division and applicable board to be
             180      equivalent to Subsection (3)(i)(i) or (ii).
             181          (j) The conduct of licensed apprentice electricians and their licensed supervisors shall
             182      be in accordance with the following:
             183          (i) A licensed apprentice electrician shall be under the immediate supervision of a
             184      licensed master, journeyman, residential master, or residential journeyman electrician. An
             185      apprentice in the fourth year of training may work without supervision for a period not to
             186      exceed eight hours in any 24-hour period.
             187          (ii) A licensed master, journeyman, residential master, or residential journeyman
             188      electrician may have under immediate supervision on a residential project up to three licensed
             189      apprentice electricians.
             190          (iii) A licensed master or journeyman electrician may have under immediate
             191      supervision on nonresidential projects only one licensed apprentice electrician.
             192          (k) An alarm company applicant shall:
             193          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
             194      the applicant who:
             195          (A) demonstrates 6,000 hours of experience in the alarm company business;
             196          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
             197      company business or in a construction business; and


             198          (C) passes an examination component established by rule by the commission with the
             199      concurrence of the director;
             200          (ii) if a corporation, provide:
             201          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             202      of all corporate officers, directors, and those responsible management personnel employed
             203      within the state or having direct responsibility for managing operations of the applicant within
             204      the state; and
             205          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             206      of all shareholders owning 5% or more of the outstanding shares of the corporation, except this
             207      shall not be required if the stock is publicly listed and traded;
             208          (iii) if a limited liability company, provide:
             209          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             210      of all company officers, and those responsible management personnel employed within the
             211      state or having direct responsibility for managing operations of the applicant within the state;
             212      and
             213          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             214      of all individuals owning 5% or more of the equity of the company;
             215          (iv) if a partnership, provide the names, addresses, dates of birth, Social Security
             216      numbers, and fingerprint cards of all general partners, and those responsible management
             217      personnel employed within the state or having direct responsibility for managing operations of
             218      the applicant within the state;
             219          (v) if a proprietorship, provide the names, addresses, dates of birth, Social Security
             220      numbers, and fingerprint cards of the proprietor, and those responsible management personnel
             221      employed within the state or having direct responsibility for managing operations of the
             222      applicant within the state;
             223          (vi) if a trust, provide the names, addresses, dates of birth, Social Security numbers,
             224      and fingerprint cards of the trustee, and those responsible management personnel employed
             225      within the state or having direct responsibility for managing operations of the applicant within


             226      the state;
             227          (vii) be of good moral character in that officers, directors, shareholders described in
             228      Subsection (3)(k)(ii)(B), partners, proprietors, trustees, and responsible management personnel
             229      have not been convicted of a felony, a misdemeanor involving moral turpitude, or any other
             230      crime that when considered with the duties and responsibilities of an alarm company is
             231      considered by the board to indicate that the best interests of the public are served by granting
             232      the applicant a license;
             233          (viii) document that none of the applicant's officers, directors, shareholders described
             234      in Subsection (3)(k)(ii)(B), partners, proprietors, trustees, and responsible management
             235      personnel have been declared by any court of competent jurisdiction incompetent by reason of
             236      mental defect or disease and not been restored;
             237          (ix) document that none of the applicant's officers, directors, shareholders described in
             238      Subsection (3)(k)(ii)(B), partners, proprietors, and responsible management personnel are
             239      currently suffering from habitual drunkenness or from drug addiction or dependence;
             240          (x) file and maintain with the division evidence of:
             241          (A) comprehensive general liability insurance in form and in amounts to be established
             242      by rule by the commission with the concurrence of the director;
             243          (B) workers' compensation insurance that covers employees of the applicant in
             244      accordance with applicable Utah law; and
             245          (C) registration as is required by applicable law with the:
             246          (I) Division of Corporations and Commercial Code;
             247          (II) Unemployment Insurance Division in the Department of Workforce Services, for
             248      purposes of Title 35A, Chapter 4, Employment Security Act;
             249          (III) State Tax Commission; and
             250          (IV) Internal Revenue Service; and
             251          (xi) meet with the division and board.
             252          (l) Each applicant for licensure as an alarm company agent shall:
             253          (i) submit an application in a form prescribed by the division accompanied by


             254      fingerprint cards;
             255          (ii) pay a fee determined by the department under Section 63J-1-504 ;
             256          (iii) be of good moral character in that the applicant has not been convicted of a felony,
             257      a misdemeanor involving moral turpitude, or any other crime that when considered with the
             258      duties and responsibilities of an alarm company agent is considered by the board to indicate
             259      that the best interests of the public are served by granting the applicant a license;
             260          (iv) not have been declared by any court of competent jurisdiction incompetent by
             261      reason of mental defect or disease and not been restored;
             262          (v) not be currently suffering from habitual drunkenness or from drug addiction or
             263      dependence; and
             264          (vi) meet with the division and board if requested by the division or the board.
             265          (m) (i) Each applicant for licensure as an elevator mechanic shall:
             266          (A) provide documentation of experience and education credits of not less than three
             267      years work experience in the elevator industry, in construction, maintenance, or service and
             268      repair; and
             269          (B) satisfactorily complete a written examination administered by the division
             270      established by rule under Section 58-1-203 ; or
             271          (C) provide certificates of completion of an apprenticeship program for elevator
             272      mechanics, having standards substantially equal to those of this chapter and registered with the
             273      United States Department of Labor Bureau Apprenticeship and Training or a state
             274      apprenticeship council.
             275          (ii) (A) If an elevator contractor licensed under this chapter cannot find a licensed
             276      elevator mechanic to perform the work of erecting, constructing, installing, altering, servicing,
             277      repairing, or maintaining an elevator, the contractor may:
             278          (I) notify the division of the unavailability of licensed personnel; and
             279          (II) request the division issue a temporary elevator mechanic license to an individual
             280      certified by the contractor as having an acceptable combination of documented experience and
             281      education to perform the work described in this Subsection (3)(m)(ii)(A).


             282          (B) (I) The division may issue a temporary elevator mechanic license to an individual
             283      certified under Subsection (3)(m)(ii)(A)(II) upon application by the individual, accompanied by
             284      the appropriate fee as determined by the department under Section 63J-1-504 .
             285          (II) The division shall specify the time period for which the license is valid and may
             286      renew the license for an additional time period upon its determination that a shortage of
             287      licensed elevator mechanics continues to exist.
             288          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             289      division may make rules establishing when Federal Bureau of Investigation records shall be
             290      checked for applicants as an alarm company or alarm company agent.
             291          (5) To determine if an applicant meets the qualifications of Subsections (3)(k)(vii) and
             292      (3)(l)(iii), the division shall provide an appropriate number of copies of fingerprint cards to the
             293      Department of Public Safety with the division's request to:
             294          (a) conduct a search of records of the Department of Public Safety for criminal history
             295      information relating to each applicant for licensure as an alarm company or alarm company
             296      agent and each applicant's officers, directors, shareholders described in Subsection
             297      (3)(k)(ii)(B), partners, proprietors, and responsible management personnel; and
             298          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
             299      requiring a check of records of the Federal Bureau of Investigation for criminal history
             300      information under this section.
             301          (6) The Department of Public Safety shall send to the division:
             302          (a) a written record of criminal history, or certification of no criminal history record, as
             303      contained in the records of the Department of Public Safety in a timely manner after receipt of
             304      a fingerprint card from the division and a request for review of Department of Public Safety
             305      records; and
             306          (b) the results of the Federal Bureau of Investigation review concerning an applicant in
             307      a timely manner after receipt of information from the Federal Bureau of Investigation.
             308          (7) (a) The division shall charge each applicant for licensure as an alarm company or
             309      alarm company agent a fee, in accordance with Section 63J-1-504 , equal to the cost of


             310      performing the records reviews under this section.
             311          (b) The division shall pay the Department of Public Safety the costs of all records
             312      reviews, and the Department of Public Safety shall pay the Federal Bureau of Investigation the
             313      costs of records reviews under this section.
             314          (8) Information obtained by the division from the reviews of criminal history records of
             315      the Department of Public Safety and the Federal Bureau of Investigation shall be used or
             316      disseminated by the division only for the purpose of determining if an applicant for licensure as
             317      an alarm company or alarm company agent is qualified for licensure.
             318          (9) (a) An application for licensure under this chapter shall be denied if:
             319          (i) the applicant has had a previous license, which was issued under this chapter,
             320      suspended or revoked within one year prior to the date of the applicant's application;
             321          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             322          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             323      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             324      status, performing similar functions, or directly or indirectly controlling the applicant has
             325      served in any similar capacity with any person or entity which has had a previous license,
             326      which was issued under this chapter, suspended or revoked within one year prior to the date of
             327      the applicant's application; or
             328          (iii) (A) the applicant is an individual or sole proprietorship; and
             329          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             330      Subsection (9)(a)(ii)(B) in any entity which has had a previous license, which was issued under
             331      this chapter, suspended or revoked within one year prior to the date of the applicant's
             332      application.
             333          (b) An application for licensure under this chapter shall be reviewed by the appropriate
             334      licensing board prior to approval if:
             335          (i) the applicant has had a previous license, which was issued under this chapter,
             336      suspended or revoked more than one year prior to the date of the applicant's application;
             337          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and


             338          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             339      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             340      status, performing similar functions, or directly or indirectly controlling the applicant has
             341      served in any similar capacity with any person or entity which has had a previous license,
             342      which was issued under this chapter, suspended or revoked more than one year prior to the date
             343      of the applicant's application; or
             344          (iii) (A) the applicant is an individual or sole proprietorship; and
             345          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             346      Subsection (9)(b)(ii)(B) in any entity which has had a previous license, which was issued under
             347      this chapter, suspended or revoked more than one year prior to the date of the applicant's
             348      application.
             349          (10) (a) (i) A licensee that is an unincorporated entity shall file an ownership status
             350      report with the division every 90 days after the day on which the license is issued if the licensee
             351      has [as an owner an individual] more than five owners who are individuals who:
             352          [(i) owns] (A) own an interest in the contractor that is an unincorporated entity;
             353          [(ii) owns] (B) own, directly or indirectly, less than an 8% interest in the
             354      unincorporated entity, as defined by rule made by the division in accordance with Title 63G,
             355      Chapter 3, Utah Administrative Rulemaking Act; and
             356          [(iii) engages] (C) engage, or will engage, in a construction trade in Utah as an owner
             357      of the contractor described in Subsection (10)(a)(i)(A).
             358          (ii) If the licensee has five or fewer owners described in Subsection (10)(a)(i), the
             359      licensee shall provide the ownership status report with an application for renewal of licensure.
             360          (b) An ownership status report required under this Subsection (10) shall:
             361          (i) list each addition or deletion of an owner:
             362          (A) for the first ownership status report, after the day on which the unincorporated
             363      entity is licensed under this chapter; and
             364          (B) for a subsequent ownership status report, after the day on which the previous
             365      ownership status report is filed;


             366          (ii) be in a format prescribed by the division that [is consistent with a] includes the
             367      items on the list provided under Subsection [ 58-55-302 ](1)(e)(iv); and
             368          (iii) be accompanied by a fee set by the division in accordance with Section 63J-1-504
             369      if the ownership status report indicates there is a change described in Subsection (10)(b)(i).
             370          (c) The division may, at any time, audit an ownership status report under this
             371      Subsection (10):
             372          (i) [in the same manner as the division may audit a demonstration of] to determine if
             373      financial responsibility has been demonstrated or maintained as required under Section
             374      58-55-306 ; and
             375          (ii) to determine compliance with Subsection 58-55-501 (24) or (25) or Subsection
             376      58-55-502 (8) or (9).
             377          (11) (a) An unincorporated entity that provides labor to an entity licensed under this
             378      chapter by providing an individual who owns an interest in the unincorporated entity to engage
             379      in a construction trade in Utah shall file with the division:
             380          (i) before the individual who owns an interest in the unincorporated entity engages in a
             381      construction trade in Utah, a current list of the one or more individuals who hold an ownership
             382      interest in the unincorporated entity that includes for each individual:
             383          (A) the individual's name, address, [and] birthdate, and Social Security number; and
             384          (B) whether the individual will engage in a construction trade; and
             385          (ii) every 90 days after the day on which the unincorporated entity provides the list
             386      described in Subsection (11)(a)(i), an ownership status report containing the information that
             387      would be required under Subsection (10) if the unincorporated entity were a licensed
             388      contractor.
             389          (b) When filing an ownership list described in Subsection (11)(a)(i) or an ownership
             390      status report described in Subsection (11)(a)(ii) an unincorporated entity shall pay a fee set by
             391      the division in accordance with Section 63J-1-504 .
             392          (12) This chapter may not be interpreted to create or support an express or implied
             393      independent contractor relationship between an unincorporated entity described in Subsection


             394      (10) or (11) and the owners of the unincorporated entity for any purpose, including income tax
             395      withholding.
             396          (13) A Social Security number provided under Subsection (1)(e)(iv) is a private record
             397      under Subsection 63G-2-302 (1)(h).
             398          Section 2. Section 58-55-306 is amended to read:
             399           58-55-306. Financial responsibility.
             400          (1) An applicant for licensure as a contractor, and a licensee applying for renewal or
             401      reinstatement of a contractor's license shall demonstrate to the division and the commission the
             402      applicant's or licensee's financial responsibility before the issuance of or the renewal or
             403      reinstatement of a license by:
             404          (a) (i) completing a questionnaire developed by the division; and
             405          (ii) signing the questionnaire, certifying that the information provided is true and
             406      accurate; or
             407          (b) submitting a bond in an amount and form determined by the commission with the
             408      concurrence of the director.
             409          (2) The division may audit an applicant's or licensee's demonstration of financial
             410      responsibility on a random basis or upon finding of a reasonable need.
             411          (3) The burden to demonstrate financial responsibility is upon the applicant or licensee.
             412          (4) (a) If an applicant for licensure as a contractor or a licensee applying for renewal or
             413      reinstatement of a contractor's license is an unincorporated entity, the division may require each
             414      individual who holds an ownership interest in the applicant or licensee to demonstrate financial
             415      responsibility to the division and the commission.
             416          (b) In accordance with Subsection (2), the division may audit an owner's demonstration
             417      of financial responsibility under Subsection (4)(a) at any time including requesting:
             418          (i) the applicant or licensee to provide a current list of owners meeting the
             419      requirements of Subsection 58-55-302 (1)(e)(iv); and
             420          (ii) a credit report for each owner.
             421          (c) If an owner described in Subsection (4)(a) fails to demonstrate financial


             422      responsibility under this section, the division may:
             423          (i) prohibit the licensee or owner from engaging in a construction trade; or
             424          (ii) require the owner, applicant, or licensee to submit a bond in an amount and form
             425      determined by the commission with the concurrence of the director.
             426          Section 3. Section 63G-12-402 is amended to read:
             427           63G-12-402. Receipt of state, local, or federal public benefits -- Verification --
             428      Exceptions -- Fraudulently obtaining benefits -- Criminal penalties -- Annual report.
             429          (1) (a) Except as provided in Subsection (3) or when exempted by federal law, an
             430      agency or political subdivision of the state shall verify the lawful presence in the United States
             431      of an individual at least 18 years of age who applies for:
             432          (i) a state or local public benefit as defined in 8 U.S.C. Sec. 1621; or
             433          (ii) a federal public benefit as defined in 8 U.S.C. Sec. 1611, that is administered by an
             434      agency or political subdivision of this state.
             435          (b) For purpose of a license issued under Title 58, Chapter 55, Utah Construction
             436      Trades Licensing Act, to an applicant that is an unincorporated entity, the Department of
             437      Commerce shall verify in accordance with this Subsection [(2)] (1) the lawful presence in the
             438      United States of each individual who:
             439          (i) owns an interest in the contractor that is an unincorporated entity; and
             440          (ii) engages, or will engage, in a construction trade in Utah as an owner of the
             441      contractor described in Subsection [(2)] (1)(b)(i).
             442          (2) This section shall be enforced without regard to race, religion, gender, ethnicity, or
             443      national origin.
             444          (3) Verification of lawful presence under this section is not required for:
             445          (a) any purpose for which lawful presence in the United States is not restricted by law,
             446      ordinance, or regulation;
             447          (b) assistance for health care items and services that:
             448          (i) are necessary for the treatment of an emergency medical condition, as defined in 42
             449      U.S.C. Sec. 1396b(v)(3), of the individual involved; and


             450          (ii) are not related to an organ transplant procedure;
             451          (c) short-term, noncash, in-kind emergency disaster relief;
             452          (d) public health assistance for immunizations with respect to immunizable diseases
             453      and for testing and treatment of symptoms of communicable diseases whether or not the
             454      symptoms are caused by the communicable disease;
             455          (e) programs, services, or assistance such as soup kitchens, crisis counseling and
             456      intervention, and short-term shelter, specified by the United States Attorney General, in the
             457      sole and unreviewable discretion of the United States Attorney General after consultation with
             458      appropriate federal agencies and departments, that:
             459          (i) deliver in-kind services at the community level, including through public or private
             460      nonprofit agencies;
             461          (ii) do not condition the provision of assistance, the amount of assistance provided, or
             462      the cost of assistance provided on the income or resources of the individual recipient; and
             463          (iii) are necessary for the protection of life or safety;
             464          (f) the exemption for paying the nonresident portion of total tuition as set forth in
             465      Section 53B-8-106 ;
             466          (g) an applicant for a license under Section 61-1-4 , if the applicant:
             467          (i) is registered with the Financial Industry Regulatory Authority; and
             468          (ii) files an application with the state Division of Securities through the Central
             469      Registration Depository;
             470          (h) a state public benefit to be given to an individual under Title 49, Utah State
             471      Retirement and Insurance Benefit Act;
             472          (i) a home loan that will be insured, guaranteed, or purchased by:
             473          (i) the Federal Housing Administration, the Veterans Administration, or any other
             474      federal agency; or
             475          (ii) an enterprise as defined in 12 U.S.C. Sec. 4502;
             476          (j) a subordinate loan or a grant that will be made to an applicant in connection with a
             477      home loan that does not require verification under Subsection (3)(i); and


             478          (k) an applicant for a license issued by the Department of Commerce or individual
             479      described in Subsection [(2)] (1)(b), if the applicant or individual provides the Department of
             480      Commerce:
             481          (i) certification, under penalty of perjury, that the applicant or individual is:
             482          (A) a United States citizen;
             483          (B) a qualified alien as defined in 8 U.S.C. Sec. 1641; or
             484          (C) lawfully present in the United States; and
             485          [(ii) the number for a driver license or identification card issued:]
             486          [(A) under Title 53, Chapter 3, Uniform Driver License Act; or]
             487          [(B) by a state other than Utah that as part of issuing the driver license or identification
             488      card verifies an individual's lawful presence in the United States.]
             489          (ii) (A) the number assigned to a driver license or identification card issued under Title
             490      53, Chapter 3, Uniform Driver License Act; or
             491          (B) the number assigned to a driver license or identification card issued by a state other
             492      than Utah if, as part of issuing the driver license or identification card, the state verifies an
             493      individual's lawful presence in the United States.
             494          (4) (a) An agency or political subdivision required to verify the lawful presence in the
             495      United States of an applicant under this section shall require the applicant to certify under
             496      penalty of perjury that:
             497          (i) the applicant is a United States citizen; or
             498          (ii) the applicant is:
             499          (A) a qualified alien as defined in 8 U.S.C. Sec. 1641; and
             500          (B) lawfully present in the United States.
             501          (b) The certificate required under this Subsection (4) shall include a statement advising
             502      the signer that providing false information subjects the signer to penalties for perjury.
             503          (5) An agency or political subdivision shall verify a certification required under
             504      Subsection (4)(b) through the federal SAVE program.
             505          (6) (a) An individual who knowingly and willfully makes a false, fictitious, or


             506      fraudulent statement or representation in a certification under Subsection (3)(k) or (4) is subject
             507      to the criminal penalties applicable in this state for:
             508          (i) making a written false statement under Subsection 76-8-504 (2); and
             509          (ii) fraudulently obtaining:
             510          (A) public assistance program benefits under Sections 76-8-1205 and 76-8-1206 ; or
             511          (B) unemployment compensation under Section 76-8-1301 .
             512          (b) If the certification constitutes a false claim of United States citizenship under 18
             513      U.S.C. Sec. 911, the agency or political subdivision shall file a complaint with the United
             514      States Attorney General for the applicable district based upon the venue in which the
             515      application was made.
             516          (c) If an agency or political subdivision receives verification that a person making an
             517      application for a benefit, service, or license is not a qualified alien, the agency or political
             518      subdivision shall provide the information to the Office of the Attorney General unless
             519      prohibited by federal mandate.
             520          (7) An agency or political subdivision may adopt variations to the requirements of this
             521      section that:
             522          (a) clearly improve the efficiency of or reduce delay in the verification process; or
             523          (b) provide for adjudication of unique individual circumstances where the verification
             524      procedures in this section would impose an unusual hardship on a legal resident of Utah.
             525          (8) It is unlawful for an agency or a political subdivision of this state to provide a state,
             526      local, or federal benefit, as defined in 8 U.S.C. Sec. 1611 and 1621, in violation of this section.
             527          (9) A state agency or department that administers a program of state or local public
             528      benefits shall:
             529          (a) provide an annual report to the governor, the president of the Senate, and the
             530      speaker of the House regarding its compliance with this section; and
             531          (b) (i) monitor the federal SAVE program for application verification errors and
             532      significant delays;
             533          (ii) provide an annual report on the errors and delays to ensure that the application of


             534      the federal SAVE program is not erroneously denying a state or local benefit to a legal resident
             535      of the state; and
             536          (iii) report delays and errors in the federal SAVE program to the United States
             537      Department of Homeland Security.


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