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[Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 160

             1     

CONSTRUCTION TRADES LICENSING AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Peter C. Knudson

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah Construction Trades Licensing Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies construction trade licensing provisions to include heating, ventilation, and
             13      air conditioning technicians;
             14          .    modifies the membership of the Construction Services Commission;
             15          .    modifies the membership of the Plumbers Licensing Board and renames it;
             16          .    authorizes the Division of Occupational and Professional Licensing to issue licenses
             17      to various heating, ventilation, and air conditioning technicians;
             18          .    requires that licensed heating, ventilation, and air conditioning technicians complete
             19      fuel and electricity efficiency education;
             20          .    modifies a provision relating to exemptions from licensure; and
             21          .    makes technical changes.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None
             26      Utah Code Sections Affected:
             27      AMENDS:


             28          58-55-102, as last amended by Laws of Utah 2011, Chapters 14 and 413
             29          58-55-103, as last amended by Laws of Utah 2010, Chapter 286
             30          58-55-201, as last amended by Laws of Utah 2008, Chapter 215
             31          58-55-301, as last amended by Laws of Utah 2010, Chapter 227
             32          58-55-302, as last amended by Laws of Utah 2011, Chapter 413
             33          58-55-302.7, as last amended by Laws of Utah 2011, Chapter 367
             34          58-55-303, as last amended by Laws of Utah 2011, Chapter 367
             35          58-55-305, as last amended by Laws of Utah 2011, Chapter 14
             36          58-55-308, as last amended by Laws of Utah 2008, Chapter 382
             37          58-55-501, as last amended by Laws of Utah 2011, Chapters 195 and 413
             38          58-55-503, as last amended by Laws of Utah 2011, Chapters 195, 340, and 413
             39      ENACTS:
             40          58-55-302.3, Utah Code Annotated 1953
             41     
             42      Be it enacted by the Legislature of the state of Utah:
             43          Section 1. Section 58-55-102 is amended to read:
             44           58-55-102. Definitions.
             45          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             46          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
             47      maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
             48      except as provided in Subsection (1)(b).
             49          (b) "Alarm business or company" does not include:
             50          (i) a person engaged in the manufacture and sale of alarm systems when that person is
             51      not engaged in the installation, maintenance, alteration, repair, replacement, servicing, or
             52      monitoring of alarm systems, and the manufacture or sale occurs only at a place of business
             53      established by the person engaged in the manufacture or sale and does not involve site visits at
             54      the place or intended place of installation of an alarm system; or
             55          (ii) an owner of an alarm system, or an employee of the owner of an alarm system who
             56      is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
             57      of the alarm system owned by that owner.
             58          (2) "Alarm company agent" means any individual employed within this state by a


             59      person engaged in the alarm business.
             60          (3) "Alarm system" means equipment and devices assembled for the purpose of:
             61          (a) detecting and signaling unauthorized intrusion or entry into or onto certain
             62      premises; or
             63          (b) signaling a robbery or attempted robbery on protected premises.
             64          (4) "Apprentice electrician" means a person licensed under this chapter as an
             65      apprentice electrician who is learning the electrical trade under the immediate supervision of a
             66      master electrician, residential master electrician, a journeyman electrician, or a residential
             67      journeyman electrician.
             68          (5) "Apprentice residential heating, ventilation, and air conditioning technician" means
             69      an individual licensed under this chapter as an apprentice residential heating, ventilation, and
             70      air conditioning technician who is learning the residential heating, ventilation, and air
             71      conditioning trade under approved supervision of a licensed residential heating, ventilation,
             72      and air conditioning supervisor.
             73          [(5)] (6) "Apprentice plumber" means a person licensed under this chapter as an
             74      apprentice plumber who is learning the plumbing trade under the immediate supervision of a
             75      master plumber, residential master plumber, journeyman plumber, or a residential journeyman
             76      plumber.
             77          [(6)] (7) "Approved continuing education" means instruction provided through courses
             78      under a program established under Subsection 58-55-302.5 (2).
             79          [(7)] (8) "Board" means, as applicable, the Electrician Licensing Board, the Alarm
             80      System Security and Licensing Board, or the Plumbers and Residential Heating, Ventilation,
             81      and Air Conditioning Technicians Licensing Board created in Section 58-55-201 .
             82          [(8)] (9) "Combustion system" means an assembly consisting of:
             83          (a) piping and components with a means for conveying, either continuously or
             84      intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
             85      appliance;
             86          (b) the electric control and combustion air supply and venting systems, including air
             87      ducts; and
             88          (c) components intended to achieve control of quantity, flow, and pressure.
             89          [(9)] (10) "Commission" means the Construction Services Commission created under


             90      Section 58-55-103 .
             91          [(10)] (11) "Construction trade" means any trade or occupation involving:
             92          (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition
             93      to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
             94      or other project, development, or improvement to other than personal property; and
             95          (ii) constructing, remodeling, or repairing a manufactured home or mobile home as
             96      defined in Section 15A-1-302 ; or
             97          (b) installation or repair of a residential or commercial natural gas appliance or
             98      combustion system.
             99          [(11)] (12) "Construction trades instructor" means a person licensed under this chapter
             100      to teach one or more construction trades in both a classroom and project environment, where a
             101      project is intended for sale to or use by the public and is completed under the direction of the
             102      instructor, who has no economic interest in the project.
             103          [(12)] (13) (a) "Contractor" means any person who for compensation other than wages
             104      as an employee undertakes any work in the construction[, plumbing, or electrical] trade for
             105      which licensure is required under this chapter and includes:
             106          (i) a person who builds any structure on the person's own property for the purpose of
             107      sale or who builds any structure intended for public use on the person's own property;
             108          (ii) any person who represents that the person is a contractor by advertising or any
             109      other means;
             110          (iii) any person engaged as a maintenance person, other than an employee, who
             111      regularly engages in activities set forth under the definition of "construction trade";
             112          (iv) any person engaged in any construction trade for which licensure is required under
             113      this chapter; or
             114          (v) a construction manager who performs management and counseling services on a
             115      construction project for a fee.
             116          (b) "Contractor" does not include an alarm company or alarm company agent.
             117          [(13)] (14) (a) "Electrical trade" means the performance of any electrical work involved
             118      in the installation, construction, alteration, change, repair, removal, or maintenance of facilities,
             119      buildings, or appendages or appurtenances.
             120          (b) "Electrical trade" does not include:


             121          (i) transporting or handling electrical materials;
             122          (ii) preparing clearance for raceways for wiring; or
             123          (iii) work commonly done by unskilled labor on any installations under the exclusive
             124      control of electrical utilities.
             125          (c) For purposes of Subsection [(13)] (14)(b):
             126          (i) no more than one unlicensed person may be so employed unless more than five
             127      licensed electricians are employed by the shop; and
             128          (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio
             129      permitted by this Subsection [(13)] (14)(c).
             130          [(14)] (15) "Elevator" has the same meaning as defined in Section 34A-7-202 , except
             131      that for purposes of this chapter it does not mean a stair chair, a vertical platform lift, or an
             132      incline platform lift.
             133          [(15)] (16) "Elevator contractor" means a sole proprietor, firm, or corporation licensed
             134      under this chapter that is engaged in the business of erecting, constructing, installing, altering,
             135      servicing, repairing, or maintaining an elevator.
             136          [(16)] (17) "Elevator mechanic" means an individual who is licensed under this chapter
             137      as an elevator mechanic and who is engaged in erecting, constructing, installing, altering,
             138      servicing, repairing, or maintaining an elevator under the immediate supervision of an elevator
             139      contractor.
             140          [(17)] (18) "Employee" means an individual as defined by the division by rule giving
             141      consideration to the definition adopted by the Internal Revenue Service and the Department of
             142      Workforce Services.
             143          [(18)] (19) "Engage in a construction trade" means to:
             144          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
             145      in a construction trade; or
             146          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
             147      to believe one is or will act as a contractor.
             148          [(19)] (20) (a) "Financial responsibility" means a demonstration of a current and
             149      expected future condition of financial solvency evidencing a reasonable expectation to the
             150      division and the board that an applicant or licensee can successfully engage in business as a
             151      contractor without jeopardy to the public health, safety, and welfare.


             152          (b) Financial responsibility may be determined by an evaluation of the total history
             153      concerning the licensee or applicant including past, present, and expected condition and record
             154      of financial solvency and business conduct.
             155          [(20)] (21) "Gas appliance" means any device that uses natural gas to produce light,
             156      heat, power, steam, hot water, refrigeration, or air conditioning.
             157          [(21)] (22) (a) "General building contractor" means a person licensed under this
             158      chapter as a general building contractor qualified by education, training, experience, and
             159      knowledge to perform or superintend construction of structures for the support, shelter, and
             160      enclosure of persons, animals, chattels, or movable property of any kind or any of the
             161      components of that construction except plumbing, electrical work, [mechanical] residential
             162      heating, ventilation, and air conditioning system work, and manufactured housing installation,
             163      for which the general building contractor shall employ the services of a contractor licensed in
             164      the particular specialty, except that a general building contractor engaged in the construction of
             165      single-family and multifamily residences up to four units may [perform the mechanical work
             166      and] hire a licensed plumber [or], electrician, or residential heating, ventilation, and air
             167      conditioning technician as an employee.
             168          (b) The division may by rule exclude general building contractors from engaging in the
             169      performance of other construction specialties in which there is represented a substantial risk to
             170      the public health, safety, and welfare, and for which a license is required unless that general
             171      building contractor holds a valid license in that specialty classification.
             172          [(22)] (23) (a) "General engineering contractor" means a person licensed under this
             173      chapter as a general engineering contractor qualified by education, training, experience, and
             174      knowledge to perform construction of fixed works in any of the following: irrigation, drainage,
             175      water, power, water supply, flood control, inland waterways, harbors, railroads, highways,
             176      tunnels, airports and runways, sewers and bridges, refineries, pipelines, chemical and industrial
             177      plants requiring specialized engineering knowledge and skill, piers, and foundations, or any of
             178      the components of those works.
             179          (b) A general engineering contractor may not perform construction of structures built
             180      primarily for the support, shelter, and enclosure of persons, animals, and chattels.
             181          (24) "Heating, ventilation, and air conditioning system":
             182          (a) means a mechanical system for the movement of air within a building for the


             183      purpose of controlling the temperature, humidity, or cleanliness of air; and
             184          (b) does not include any liquid-circulating portion of a system described in Subsection
             185      (24)(a).
             186          [(23)] (25) "Immediate supervision" means reasonable direction, oversight, inspection,
             187      and evaluation of the work of a person:
             188          (a) as the division specifies in rule;
             189          (b) by, as applicable, a qualified electrician [or], plumber, or residential heating,
             190      ventilation, and air conditioning technician;
             191          (c) as part of a planned program of training; and
             192          (d) to ensure that the end result complies with applicable standards.
             193          [(24)] (26) "Individual" means a natural person.
             194          [(25)] (27) "Journeyman electrician" means a person licensed under this chapter as a
             195      journeyman electrician having the qualifications, training, experience, and knowledge to wire,
             196      install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.
             197          (28) "Journeyman residential heating, ventilation, and air conditioning technician"
             198      means a person licensed under this chapter as a journeyman residential heating, ventilation, and
             199      air conditioning technician having the qualifications, training, experience, and knowledge to:
             200          (a) install, service, maintain, and repair a residential heating, ventilation, and air
             201      conditioning system; and
             202          (b) supervise the installation, service, maintenance, and repair of a residential heating,
             203      ventilation, and air conditioning system.
             204          [(26)] (29) "Journeyman plumber" means a person licensed under this chapter as a
             205      journeyman plumber having the qualifications, training, experience, and technical knowledge
             206      to engage in the plumbing trade.
             207          (30) "Licensed residential heating, ventilation, and air conditioning supervisor" means:
             208          (a) an individual who:
             209          (i) supervises a licensed apprentice residential heating, ventilation, and air conditioning
             210      technician; and
             211          (ii) is a licensed master or journeyman residential heating, ventilation, and air
             212      conditioning technician; or
             213          (b) for supervision that occurs before May 8, 2012, an individual who:


             214          (i) supervises a technician in work involving the installation, construction, alteration,
             215      change, repair, removal, or maintenance of a heating, ventilation, and air conditioning system;
             216      and
             217          (ii) is licensed under this chapter as a specialty contractor in the heating, ventilation,
             218      and air conditioning system trade.
             219          [(27)] (31) "Master electrician" means a person licensed under this chapter as a master
             220      electrician having the qualifications, training, experience, and knowledge to properly plan,
             221      layout, and supervise the wiring, installation, and repair of electrical apparatus and equipment
             222      for light, heat, power, and other purposes.
             223          (32) "Master residential heating, ventilation, and air conditioning technician" means a
             224      person licensed under this chapter as a master residential heating, ventilation, and air
             225      conditioning technician having the qualifications, training, experience, and knowledge to
             226      properly lay out, perform, and supervise the installation, service, maintenance, and repair of a
             227      residential heating, ventilation, and air conditioning system.
             228          [(28)] (33) "Master plumber" means a person licensed under this chapter as a master
             229      plumber having the qualifications, training, experience, and knowledge to properly plan and
             230      layout projects and supervise persons in the plumbing trade.
             231          [(29)] (34) "Person" means a natural person, sole proprietorship, joint venture,
             232      corporation, limited liability company, association, or organization of any type.
             233          [(30)] (35) (a) "Plumbing trade" means the performance of any mechanical work
             234      pertaining to the installation, alteration, change, repair, removal, maintenance, or use in
             235      buildings, or within three feet beyond the outside walls of buildings of pipes, fixtures, and
             236      fittings for:
             237          (i) delivery of the water supply;
             238          (ii) discharge of liquid and water carried waste; or
             239          (iii) the building drainage system within the walls of the building.
             240          (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
             241      fixtures and fixture traps, soil, waste and vent pipes, and the building drain and roof drains
             242      together with their devices, appurtenances, and connections where installed within the outside
             243      walls of the building.
             244          [(31)] (36) (a) "Ratio of apprentices" means, for the purpose of determining


             245      compliance with the requirements for planned programs of training and electrician apprentice
             246      licensing applications, the shop ratio of apprentice electricians to journeyman or master
             247      electricians shall be one journeyman or master electrician to one apprentice on industrial and
             248      commercial work, and one journeyman or master electrician to three apprentices on residential
             249      work.
             250          (b) On-the-job training shall be under circumstances in which the ratio of apprentices
             251      to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
             252      three apprentices to one supervisor on residential projects.
             253          [(32)] (37) "Residential and small commercial contractor" means a person licensed
             254      under this chapter as a residential and small commercial contractor qualified by education,
             255      training, experience, and knowledge to perform or superintend the construction of
             256      single-family residences, multifamily residences up to four units, and commercial construction
             257      of not more than three stories above ground and not more than 20,000 square feet, or any of the
             258      components of that construction except plumbing, electrical work, mechanical work, and
             259      manufactured housing installation, for which the residential and small commercial contractor
             260      shall employ the services of a contractor licensed in the particular specialty, except that a
             261      residential and small commercial contractor engaged in the construction of single-family and
             262      multifamily residences up to four units may perform the mechanical work and hire a licensed
             263      plumber or electrician as an employee.
             264          [(33)] (38) "Residential building[," as it relates to]":
             265          (a) means, for the license classification of residential journeyman plumber and
             266      residential master plumber, [means] a single or multiple family dwelling of up to four units[.];
             267      and
             268          (b) as used in the definition of "residential heating, ventilation, and air conditioning
             269      system," has the same meaning as the term "building" as defined in the International
             270      Residential Code under the State Construction Code adopted by the Legislature.
             271          (39) "Residential heating, ventilation, and air conditioning system" means a heating,
             272      ventilation, and air conditioning system for a residential building.
             273          (40) "Residential heating, ventilation, and air conditioning trade" means work
             274      involving the installation, construction, alteration, change, repair, removal, or maintenance of a
             275      residential heating, ventilation, and air conditioning system.


             276          [(34)] (41) "Residential journeyman electrician" means a person licensed under this
             277      chapter as a residential journeyman electrician having the qualifications, training, experience,
             278      and knowledge to wire, install, and repair electrical apparatus and equipment for light, heat,
             279      power, and other purposes on buildings using primarily nonmetallic sheath cable.
             280          [(35)] (42) "Residential journeyman plumber" means a person licensed under this
             281      chapter as a residential journeyman plumber having the qualifications, training, experience, and
             282      knowledge to engage in the plumbing trade as limited to the plumbing of a residential
             283      [buildings] building.
             284          [(36)] (43) "Residential master electrician" means a person licensed under this chapter
             285      as a residential master electrician having the qualifications, training, experience, and
             286      knowledge to properly plan, layout, and supervise the wiring, installation, and repair of
             287      electrical apparatus and equipment for light, heat, power, and other purposes on residential
             288      projects.
             289          [(37)] (44) "Residential master plumber" means a person licensed under this chapter as
             290      a residential master plumber having the qualifications, training, experience, and knowledge to
             291      properly plan and layout projects and supervise persons in the plumbing trade as limited to the
             292      plumbing of a residential [buildings] building.
             293          [(38)] (45) "Residential project," as it relates to an electrician or electrical contractor,
             294      means buildings primarily wired with nonmetallic sheathed cable, in accordance with standard
             295      rules and regulations governing this work, including the National Electrical Code, and in which
             296      the voltage does not exceed 250 volts line to line and 125 volts to ground.
             297          [(39) (a)] (46) "Specialty contractor" means a person licensed under this chapter under
             298      a specialty contractor classification established by rule, who is qualified by education, training,
             299      experience, and knowledge to perform those construction trades and crafts requiring
             300      specialized skill, the regulation of which are determined by the division to be in the best
             301      interest of the public health, safety, and welfare.
             302          [(b) A specialty contractor may perform work in crafts or trades other than those in
             303      which the specialty contractor is licensed if they are incidental to the performance of the
             304      specialty contractor's licensed craft or trade.]
             305          [(40)] (47) "Unincorporated entity" means an entity that is not:
             306          (a) an individual;


             307          (b) a corporation; or
             308          (c) publicly traded.
             309          [(41)] (48) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
             310          [(42)] (49) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-55-502
             311      and as may be further defined by rule.
             312          [(43)] (50) "Wages" means amounts due to an employee for labor or services whether
             313      the amount is fixed or ascertained on a time, task, piece, commission, or other basis for
             314      calculating the amount.
             315          Section 2. Section 58-55-103 is amended to read:
             316           58-55-103. Construction Services Commission created -- Functions --
             317      Appointment -- Qualifications and terms of members -- Vacancies -- Expenses --
             318      Meetings.
             319          (1) (a) There is created within the division the Construction Services Commission.
             320          (b) The commission shall:
             321          (i) with the concurrence of the director, make reasonable rules under Title 63G,
             322      Chapter 3, Utah Administrative Rulemaking Act, to administer and enforce this chapter which
             323      are consistent with this chapter including:
             324          (A) licensing of various licensees;
             325          (B) examination requirements and administration of the examinations, to include
             326      approving and establishing a passing score for applicant examinations;
             327          (C) standards of supervision for students or persons in training to become qualified to
             328      obtain a license in the trade they represent; [and]
             329          (D) standards of conduct for various licensees; and
             330          (E) defining the experience or training that will be considered to be the equivalent of
             331      required experience or training if a provision of this chapter allows experience or training that
             332      is the equivalent of the required experience or training;
             333          (ii) approve or disapprove fees adopted by the division under Section 63J-1-504 ;
             334          (iii) except where the boards conduct them, conduct all administrative hearings not
             335      delegated to an administrative law judge relating to the licensing of any applicant;
             336          (iv) except as otherwise provided in Sections 38-11-207 and 58-55-503 , with the
             337      concurrence of the director, impose sanctions against licensees and certificate holders with the


             338      same authority as the division under Section 58-1-401 ;
             339          (v) advise the director on the administration and enforcement of any matters affecting
             340      the division and the construction industry;
             341          (vi) advise the director on matters affecting the division budget;
             342          (vii) advise and assist trade associations in conducting construction trade seminars and
             343      industry education and promotion; and
             344          (viii) perform other duties as provided by this chapter.
             345          [(2) (a) Initially the commission shall be comprised of the five members of the
             346      Contractors Licensing Board and two of the three chair persons from the Plumbers Licensing
             347      Board, the Alarm System Security and Licensing Board, and the Electricians Licensing Board.]
             348          [(b) The terms of office of the commission members who are serving on the
             349      Contractors Licensing Board shall continue as they serve on the commission.]
             350          [(c) Beginning July 1, 2004, the]
             351          (2) The commission shall be comprised of nine members appointed by the executive
             352      director with the approval of the governor from the following groups:
             353          [(i)] (a) one member shall be a licensed general engineering contractor;
             354          [(ii)] (b) one member shall be a licensed general building contractor;
             355          [(iii)] (c) two members shall be licensed residential and small commercial contractors;
             356          [(iv)] (d) [three members shall be the three chair persons from] one member shall be
             357      the chair of the Plumbers and Residential Heating, Ventilation, and Air Conditioning
             358      Technicians Licensing Board[,];
             359          (e) one member shall be the chair of the Alarm System Security and Licensing Board[,
             360      and];
             361          (f) one member shall be the chair of the Electricians Licensing Board; and
             362          [(v)] (g) two members shall be from the general public[, provided, however that the
             363      certified public accountant on the Contractors Licensing Board will continue to serve until the
             364      current term expires, after which both members under this Subsection (2)(c)(v) shall be
             365      appointed from the general public].
             366          (3) (a) Except as required by Subsection (3)(b), as terms of current commission
             367      members expire, the executive director with the approval of the governor shall appoint each
             368      new member or reappointed member to a four-year term ending June 30.


             369          (b) Notwithstanding the requirements of Subsection (3)(a), the executive director with
             370      the approval of the governor shall, at the time of appointment or reappointment, adjust the
             371      length of terms to stagger the terms of commission members so that approximately [1/2]
             372      one-half of the commission members are appointed every two years.
             373          (c) A commission member may not serve more than two consecutive terms.
             374          (4) The commission shall elect annually one of its members as chair, for a term of one
             375      year.
             376          (5) When a vacancy occurs in the membership for any reason, the replacement shall be
             377      appointed for the unexpired term.
             378          (6) A member may not receive compensation or benefits for the member's service, but
             379      may receive per diem and travel expenses in accordance with:
             380          (a) Section 63A-3-106 ;
             381          (b) Section 63A-3-107 ; and
             382          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             383      63A-3-107 .
             384          (7) (a) The commission shall meet at least monthly unless the director determines
             385      otherwise.
             386          (b) The director may call additional meetings at the director's discretion, upon the
             387      request of the chair, or upon the written request of four or more commission members.
             388          (8) (a) Five members constitute a quorum for the transaction of business.
             389          (b) If a quorum is present when a vote is taken, the affirmative vote of commission
             390      members present is the act of the commission.
             391          (9) The commission shall comply with the procedures and requirements of Title 13,
             392      Chapter 1, Department of Commerce, and Title 63G, Chapter 4, Administrative Procedures
             393      Act, in all of its adjudicative proceedings.
             394          Section 3. Section 58-55-201 is amended to read:
             395           58-55-201. Boards created -- Duties.
             396          (1) There is created a Plumbers and Residential Heating, Ventilation, and Air
             397      Conditioning Technicians Licensing Board, an Alarm System Security and Licensing Board,
             398      and an Electricians Licensing Board. Members of the boards shall be selected to provide
             399      representation as follows:


             400          (a) (i) The Plumbers and Residential Heating, Ventilation, and Air Conditioning
             401      Technicians Licensing Board consists of [five] seven members as follows:
             402          [(i)] (A) two members shall be licensed from among the license classifications of
             403      master or journeyman plumber;
             404          [(ii)] (B) [two members] one member shall be a licensed plumbing [contractors]
             405      contractor; [and]
             406          (C) two members shall be licensed from among the license classifications of master or
             407      journeyman residential heating, ventilation, and air conditioning technician;
             408          (D) one member shall be a residential heating, ventilation, and air conditioning
             409      contractor; and
             410          [(iii)] (E) one member shall be from the public at large with no history of involvement
             411      in the construction trades.
             412          (b) (i) The Alarm System Security and Licensing Board consists of five members as
             413      follows:
             414          (A) three individuals who are officers or owners of a licensed alarm business;
             415          (B) one individual from among nominees of the Utah Peace Officers Association; and
             416          (C) one individual representing the general public.
             417          (ii) The Alarm System Security and Licensing Board shall designate one of its
             418      members on a permanent or rotating basis to:
             419          (A) assist the division in reviewing complaints concerning the unlawful or
             420      unprofessional conduct of a licensee; and
             421          (B) advise the division in its investigation of these complaints.
             422          (iii) A board member who has, under this Subsection (1)(b)(iii), reviewed a complaint
             423      or advised in its investigation is disqualified from participating with the board when the board
             424      serves as a presiding officer in an adjudicative proceeding concerning the complaint.
             425          (c) The Electricians Licensing Board consists of five members as follows:
             426          (i) two members shall be licensed from among the license classifications of master or
             427      journeyman electrician, of whom one shall represent a union organization and one shall be
             428      selected having no union affiliation;
             429          (ii) two shall be licensed electrical contractors of whom one shall represent a union
             430      organization and one shall be selected having no union affiliation; and


             431          (iii) one member shall be from the public at large with no history of involvement in the
             432      construction trades or union affiliation.
             433          (2) The duties, functions, and responsibilities of each board include the following:
             434          (a) recommending to the commission appropriate rules;
             435          (b) recommending to the commission policy and budgetary matters;
             436          (c) approving and establishing a passing score for applicant examinations;
             437          (d) overseeing the screening of applicants for licensing, renewal, reinstatement, and
             438      relicensure;
             439          (e) assisting the commission in establishing standards of supervision for students or
             440      persons in training to become qualified to obtain a license in the occupation or profession it
             441      represents; and
             442          (f) acting as presiding officer in conducting hearings associated with the adjudicative
             443      proceedings and in issuing recommended orders when so authorized by the commission.
             444          Section 4. Section 58-55-301 is amended to read:
             445           58-55-301. License required -- License classifications.
             446          (1) (a) A person engaged in the construction trades licensed under this chapter, as a
             447      contractor regulated under this chapter, as an alarm business or company, or as an alarm
             448      company agent, shall become licensed under this chapter before engaging in that trade or
             449      contracting activity in this state unless specifically exempted from licensure under Section
             450      58-1-307 or 58-55-305 .
             451          (b) The license issued under this chapter and the business license issued by the local
             452      jurisdiction in which the licensee has its principal place of business shall be the only licenses
             453      required for the licensee to engage in a trade licensed by this chapter, within the state.
             454          (c) Neither the state nor any of its political subdivisions may require of a licensee any
             455      additional business licenses, registrations, certifications, contributions, donations, or anything
             456      else established for the purpose of qualifying a licensee under this chapter to do business in that
             457      local jurisdiction, except for contract prequalification procedures required by state agencies, or
             458      the payment of any fee for the license, registration, or certification established as a condition to
             459      do business in that local jurisdiction.
             460          (2) The division shall issue licenses under this chapter to qualified persons in the
             461      following classifications:


             462          (a) general engineering contractor;
             463          (b) general building contractor;
             464          (c) residential and small commercial contractor;
             465          (d) elevator contractor;
             466          (e) specialty contractor;
             467          (f) master plumber;
             468          (g) residential master plumber;
             469          (h) journeyman plumber;
             470          (i) apprentice plumber;
             471          (j) residential journeyman plumber;
             472          (k) master electrician;
             473          (l) residential master electrician;
             474          (m) journeyman electrician;
             475          (n) residential journeyman electrician;
             476          (o) apprentice electrician;
             477          (p) construction trades instructor:
             478          (i) general engineering classification;
             479          (ii) general building classification;
             480          (iii) electrical classification;
             481          (iv) plumbing classification; and
             482          (v) mechanical classification;
             483          (q) alarm company;
             484          (r) alarm company agent; [and]
             485          (s) elevator mechanic[.];
             486          (t) master residential heating, ventilation, and air conditioning technician;
             487          (u) journeyman residential heating, ventilation, and air conditioning technician; and
             488          (v) apprentice residential heating, ventilation, and air conditioning technician.
             489          (3) (a) An applicant may apply for a license in one or more classification or specialty
             490      contractor subclassification.
             491          (b) A license shall be granted in each classification or subclassification for which the
             492      applicant qualifies.


             493          (c) A separate application and fee must be submitted for each license classification or
             494      subclassification.
             495          Section 5. Section 58-55-302 is amended to read:
             496           58-55-302. Qualifications for licensure.
             497          (1) Each applicant for a license under this chapter shall:
             498          (a) submit an application prescribed by the division;
             499          (b) pay a fee as determined by the department under Section 63J-1-504 ;
             500          (c) (i) meet the examination requirements established by rule by the commission with
             501      the concurrence of the director, except for the classifications of apprentice plumber [and],
             502      apprentice electrician, and apprentice residential heating, ventilation, and air conditioning
             503      technician, for whom no examination is required; or
             504          (ii) if required in Section 58-55-304 , the individual qualifier must pass the required
             505      examination if the applicant is a business entity;
             506          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
             507          (e) if an applicant for a contractor's license:
             508          (i) produce satisfactory evidence of financial responsibility, except for a construction
             509      trades instructor for whom evidence of financial responsibility is not required;
             510          (ii) produce satisfactory evidence of knowledge and experience in the construction
             511      industry and knowledge of the principles of the conduct of business as a contractor, reasonably
             512      necessary for the protection of the public health, safety, and welfare;
             513          (iii) (A) be a licensed master electrician if an applicant for an electrical contractor's
             514      license or a licensed master residential electrician if an applicant for a residential electrical
             515      contractor's license;
             516          (B) be a licensed master plumber if an applicant for a plumbing contractor's license or
             517      a licensed [master] residential master plumber if an applicant for a residential plumbing
             518      contractor's license; [or]
             519          (C) be a licensed master residential heating, ventilation, and air conditioning technician
             520      if an applicant for a residential heating, ventilation, and air conditioning contractor's license; or
             521          [(C)] (D) be a licensed elevator mechanic and produce satisfactory evidence of three
             522      years experience as an elevator mechanic if an applicant for an elevator contractor's license;
             523      and


             524          (iv) [when] if the applicant is an unincorporated entity, provide a list of the one or
             525      more individuals who hold an ownership interest in the applicant as of the day on which the
             526      application is filed that includes for each individual:
             527          (A) the individual's name, address, and Social Security number; and
             528          (B) whether the individual will engage in a construction trade; and
             529          (f) if an applicant for a construction trades instructor license, satisfy any additional
             530      requirements established by rule.
             531          (2) After approval of an applicant for a contractor's license by the applicable board and
             532      the division, the applicant shall file the following with the division before the division issues
             533      the license:
             534          (a) proof of workers' compensation insurance which covers employees of the applicant
             535      in accordance with applicable Utah law;
             536          (b) proof of public liability insurance in coverage amounts and form established by rule
             537      except for a construction trades instructor for whom public liability insurance is not required;
             538      and
             539          (c) proof of registration as required by applicable law with the:
             540          (i) Utah Department of Commerce;
             541          (ii) Division of Corporations and Commercial Code;
             542          (iii) Unemployment Insurance Division in the Department of Workforce Services, for
             543      purposes of Title 35A, Chapter 4, Employment Security Act;
             544          (iv) State Tax Commission; and
             545          (v) Internal Revenue Service.
             546          (3) In addition to the general requirements for each applicant in Subsection (1),
             547      applicants shall comply with the following requirements to be licensed in the following
             548      classifications:
             549          (a) (i) A master plumber shall produce satisfactory evidence that the applicant:
             550          (A) has been a licensed journeyman plumber for at least two years and had two years of
             551      supervisory experience as a licensed journeyman plumber in accordance with division rule;
             552          (B) has received at least an associate of applied science degree or similar degree
             553      following the completion of a course of study approved by the division and had one year of
             554      supervisory experience as a licensed journeyman plumber in accordance with division rule; or


             555          (C) meets the qualifications determined by the division in collaboration with the board
             556      to be equivalent to Subsection (3)(a)(i)(A) or (B).
             557          (ii) An individual holding a valid Utah license as a journeyman plumber, based on at
             558      least four years of practical experience as a licensed apprentice under the supervision of a
             559      licensed journeyman plumber and four years as a licensed journeyman plumber, in effect
             560      immediately prior to May 5, 2008, is on and after May 5, 2008, considered to hold a current
             561      master plumber license under this chapter, and satisfies the requirements of this Subsection
             562      (3)(a) for the purpose of renewal or reinstatement of that license under Section 58-55-303 .
             563          (iii) An individual holding a valid plumbing contractor's license or residential
             564      plumbing contractor's license, in effect immediately prior to May 5, 2008, is on or after May 5,
             565      2008:
             566          (A) considered to hold a current master plumber license under this chapter if licensed
             567      as a plumbing contractor and a journeyman plumber, and satisfies the requirements of this
             568      Subsection (3)(a) for purposes of renewal or reinstatement of that license under Section
             569      58-55-303 ; and
             570          (B) considered to hold a current residential master plumber license under this chapter if
             571      licensed as a residential plumbing contractor and a residential journeyman plumber, and
             572      satisfies the requirements of this Subsection (3)(a) for purposes of renewal or reinstatement of
             573      that license under Section 58-55-303 .
             574          (b) A master residential plumber applicant shall produce satisfactory evidence that the
             575      applicant:
             576          (i) has been a licensed residential journeyman plumber for at least two years and had
             577      two years of supervisory experience as a licensed residential journeyman plumber in
             578      accordance with division rule; or
             579          (ii) meets the qualifications determined by the division in collaboration with the board
             580      to be equivalent to Subsection (3)(b)(i).
             581          (c) A journeyman plumber applicant shall produce satisfactory evidence of:
             582          (i) successful completion of the equivalent of at least four years of full-time training
             583      and instruction as a licensed apprentice plumber under supervision of a licensed master
             584      plumber or journeyman plumber and in accordance with a planned program of training
             585      approved by the division;


             586          (ii) at least eight years of full-time experience approved by the division in collaboration
             587      with the Plumbers Licensing Board; or
             588          (iii) satisfactory evidence of meeting the qualifications determined by the board to be
             589      equivalent to Subsection (3)(c)(i) or (c)(ii).
             590          (d) A residential journeyman plumber shall produce satisfactory evidence of:
             591          (i) completion of the equivalent of at least three years of full-time training and
             592      instruction as a licensed apprentice plumber under the supervision of a licensed residential
             593      master plumber, licensed residential journeyman plumber, or licensed journeyman plumber in
             594      accordance with a planned program of training approved by the division;
             595          (ii) completion of at least six years of full-time experience in a maintenance or repair
             596      trade involving substantial plumbing work; or
             597          (iii) meeting the qualifications determined by the board to be equivalent to Subsection
             598      (3)(d)(i) or (d)(ii).
             599          (e) The conduct of licensed apprentice plumbers and their licensed supervisors shall be
             600      in accordance with the following:
             601          (i) while engaging in the trade of plumbing, a licensed apprentice plumber shall be
             602      under the immediate supervision of a licensed master plumber, licensed residential master
             603      plumber, licensed journeyman plumber, or a licensed residential journeyman plumber; and
             604          (ii) a licensed apprentice plumber in the fourth through tenth year of training may work
             605      without supervision for a period not to exceed eight hours in any 24-hour period, but if the
             606      apprentice does not become a licensed journeyman plumber or licensed residential journeyman
             607      plumber by the end of the tenth year of apprenticeship, this nonsupervision provision no longer
             608      applies.
             609          (f) A master electrician applicant shall produce satisfactory evidence that the applicant:
             610          (i) is a graduate electrical engineer of an accredited college or university approved by
             611      the division and has one year of practical electrical experience as a licensed apprentice
             612      electrician;
             613          (ii) is a graduate of an electrical trade school, having received an associate of applied
             614      sciences degree following successful completion of a course of study approved by the division,
             615      and has two years of practical experience as a licensed journeyman electrician;
             616          (iii) has four years of practical experience as a journeyman electrician; or


             617          (iv) meets the qualifications determined by the board to be equivalent to Subsection
             618      (3)(f)(i), (ii), or (iii).
             619          (g) A [master] residential master electrician applicant shall produce satisfactory
             620      evidence that the applicant:
             621          (i) has at least two years of practical experience as a residential journeyman electrician;
             622      or
             623          (ii) meets the qualifications determined by the board to be equivalent to this practical
             624      experience.
             625          (h) A journeyman electrician applicant shall produce satisfactory evidence that the
             626      applicant:
             627          (i) has successfully completed at least four years of full-time training and instruction as
             628      a licensed apprentice electrician under the supervision of a master electrician or journeyman
             629      electrician and in accordance with a planned training program approved by the division;
             630          (ii) has at least eight years of full-time experience approved by the division in
             631      collaboration with the Electricians Licensing Board; or
             632          (iii) meets the qualifications determined by the board to be equivalent to Subsection
             633      (3)(h)(i) or (ii).
             634          (i) A residential journeyman electrician applicant shall produce satisfactory evidence
             635      that the applicant:
             636          (i) has successfully completed two years of training in an electrical training program
             637      approved by the division;
             638          (ii) has four years of practical experience in wiring, installing, and repairing electrical
             639      apparatus and equipment for light, heat, and power under the supervision of a licensed master,
             640      journeyman, residential master, or residential journeyman electrician; or
             641          (iii) meets the qualifications determined by the division and [applicable board] the
             642      Electricians Licensing Board to be equivalent to Subsection (3)(i)(i) or (ii).
             643          (j) The conduct of licensed apprentice electricians and their licensed supervisors shall
             644      be in accordance with the following:
             645          (i) A licensed apprentice electrician shall be under the immediate supervision of a
             646      licensed master, journeyman, residential master, or residential journeyman electrician. An
             647      apprentice in the fourth year of training may work without supervision for a period not to


             648      exceed eight hours in any 24-hour period.
             649          (ii) A licensed master, journeyman, residential master, or residential journeyman
             650      electrician may have under immediate supervision on a residential project up to three licensed
             651      apprentice electricians.
             652          (iii) A licensed master or journeyman electrician may have under immediate
             653      supervision on nonresidential projects only one licensed apprentice electrician.
             654          (k) An applicant for master residential heating, ventilation, and air conditioning
             655      technician shall:
             656          (i) (A) produce satisfactory evidence that the applicant has at least two years full-time
             657      experience as a journeyman residential heating, ventilation, and air conditioning technician, or
             658      its equivalent; and
             659          (B) pass a competency test; or
             660          (ii) produce satisfactory evidence that the applicant has at least six years full-time
             661      experience in the heating, ventilation, and air conditioning system trade, or its equivalent, at
             662      least two years of which are during a time that the applicant is certified by North American
             663      Technicians Excellence.
             664          (l) An applicant for journeyman residential heating, ventilation, and air conditioning
             665      technician shall:
             666          (i) produce satisfactory evidence that the applicant has:
             667          (A) at least two years full-time experience in the residential heating, ventilation, and air
             668      conditioning trade under the supervision of a licensed residential heating, ventilation, and air
             669      conditioning supervisor, or equivalent experience, and at least two years formal training or
             670      equivalent training, which experience and training may be concurrent; or
             671          (B) at least four years full-time experience in the residential heating, ventilation, and
             672      air conditioning trade under the supervision of a licensed residential heating, ventilation, and
             673      air conditioning supervisor, or equivalent experience; and
             674          (ii) pass a competency test.
             675          (m) A licensed apprentice residential heating, ventilation, and air conditioning
             676      technician shall be under the immediate supervision of a licensed residential heating,
             677      ventilation, and air conditioning supervisor.
             678          [(k)] (n) An alarm company applicant shall:


             679          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
             680      the applicant who:
             681          (A) demonstrates 6,000 hours of experience in the alarm company business;
             682          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
             683      company business or in a construction business; and
             684          (C) passes an examination component established by rule by the commission with the
             685      concurrence of the director;
             686          (ii) if a corporation, provide:
             687          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             688      of all corporate officers, directors, and those responsible management personnel employed
             689      within the state or having direct responsibility for managing operations of the applicant within
             690      the state; and
             691          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             692      of all shareholders owning 5% or more of the outstanding shares of the corporation, except this
             693      shall not be required if the stock is publicly listed and traded;
             694          (iii) if a limited liability company, provide:
             695          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             696      of all company officers, and those responsible management personnel employed within the
             697      state or having direct responsibility for managing operations of the applicant within the state;
             698      and
             699          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             700      of all individuals owning 5% or more of the equity of the company;
             701          (iv) if a partnership, provide the names, addresses, dates of birth, Social Security
             702      numbers, and fingerprint cards of all general partners, and those responsible management
             703      personnel employed within the state or having direct responsibility for managing operations of
             704      the applicant within the state;
             705          (v) if a proprietorship, provide the names, addresses, dates of birth, Social Security
             706      numbers, and fingerprint cards of the proprietor, and those responsible management personnel
             707      employed within the state or having direct responsibility for managing operations of the
             708      applicant within the state;
             709          (vi) if a trust, provide the names, addresses, dates of birth, Social Security numbers,


             710      and fingerprint cards of the trustee, and those responsible management personnel employed
             711      within the state or having direct responsibility for managing operations of the applicant within
             712      the state;
             713          (vii) be of good moral character in that officers, directors, shareholders described in
             714      Subsection (3)[(k)](n)(ii)(B), partners, proprietors, trustees, and responsible management
             715      personnel have not been convicted of a felony, a misdemeanor involving moral turpitude, or
             716      any other crime that when considered with the duties and responsibilities of an alarm company
             717      is considered by the board to indicate that the best interests of the public are served by granting
             718      the applicant a license;
             719          (viii) document that none of the applicant's officers, directors, shareholders described
             720      in Subsection (3)[(k)](n)(ii)(B), partners, proprietors, trustees, and responsible management
             721      personnel have been declared by any court of competent jurisdiction incompetent by reason of
             722      mental defect or disease and not been restored;
             723          (ix) document that none of the applicant's officers, directors, shareholders described in
             724      Subsection (3)[(k)](n)(ii)(B), partners, proprietors, and responsible management personnel are
             725      currently suffering from habitual drunkenness or from drug addiction or dependence;
             726          (x) file and maintain with the division evidence of:
             727          (A) comprehensive general liability insurance in form and in amounts to be established
             728      by rule by the commission with the concurrence of the director;
             729          (B) workers' compensation insurance that covers employees of the applicant in
             730      accordance with applicable Utah law; and
             731          (C) registration as is required by applicable law with the:
             732          (I) Division of Corporations and Commercial Code;
             733          (II) Unemployment Insurance Division in the Department of Workforce Services, for
             734      purposes of Title 35A, Chapter 4, Employment Security Act;
             735          (III) State Tax Commission; and
             736          (IV) Internal Revenue Service; and
             737          (xi) meet with the division and board.
             738          [(l)] (o) Each applicant for licensure as an alarm company agent shall:
             739          (i) submit an application in a form prescribed by the division accompanied by
             740      fingerprint cards;


             741          (ii) pay a fee determined by the department under Section 63J-1-504 ;
             742          (iii) be of good moral character in that the applicant has not been convicted of a felony,
             743      a misdemeanor involving moral turpitude, or any other crime that when considered with the
             744      duties and responsibilities of an alarm company agent is considered by the board to indicate
             745      that the best interests of the public are served by granting the applicant a license;
             746          (iv) not have been declared by any court of competent jurisdiction incompetent by
             747      reason of mental defect or disease and not been restored;
             748          (v) not be currently suffering from habitual drunkenness or from drug addiction or
             749      dependence; and
             750          (vi) meet with the division and board if requested by the division or the board.
             751          [(m)] (p) (i) Each applicant for licensure as an elevator mechanic shall:
             752          (A) provide documentation of experience and education credits of not less than three
             753      years work experience in the elevator industry, in construction, maintenance, or service and
             754      repair; and
             755          (B) satisfactorily complete a written examination administered by the division
             756      established by rule under Section 58-1-203 ; or
             757          (C) provide certificates of completion of an apprenticeship program for elevator
             758      mechanics, having standards substantially equal to those of this chapter and registered with the
             759      United States Department of Labor Bureau Apprenticeship and Training or a state
             760      apprenticeship council.
             761          (ii) (A) If an elevator contractor licensed under this chapter cannot find a licensed
             762      elevator mechanic to perform the work of erecting, constructing, installing, altering, servicing,
             763      repairing, or maintaining an elevator, the contractor may:
             764          (I) notify the division of the unavailability of licensed personnel; and
             765          (II) request the division issue a temporary elevator mechanic license to an individual
             766      certified by the contractor as having an acceptable combination of documented experience and
             767      education to perform the work described in this Subsection (3)[(m)](p)(ii)(A).
             768          (B) (I) The division may issue a temporary elevator mechanic license to an individual
             769      certified under Subsection (3)[(m)](p)(ii)(A)(II) upon application by the individual,
             770      accompanied by the appropriate fee as determined by the department under Section 63J-1-504 .
             771          (II) The division shall specify the time period for which the license is valid and may


             772      renew the license for an additional time period upon its determination that a shortage of
             773      licensed elevator mechanics continues to exist.
             774          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             775      division may make rules establishing when Federal Bureau of Investigation records shall be
             776      checked for applicants as an alarm company or alarm company agent.
             777          (5) To determine if an applicant meets the qualifications of Subsections (3)[(k)](n)(vii)
             778      and (3)[(l)](o)(iii), the division shall provide an appropriate number of copies of fingerprint
             779      cards to the Department of Public Safety with the division's request to:
             780          (a) conduct a search of records of the Department of Public Safety for criminal history
             781      information relating to each applicant for licensure as an alarm company or alarm company
             782      agent and each applicant's officers, directors, shareholders described in Subsection
             783      (3)[(k)](n)(ii)(B), partners, proprietors, and responsible management personnel; and
             784          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
             785      requiring a check of records of the Federal Bureau of Investigation for criminal history
             786      information under this section.
             787          (6) The Department of Public Safety shall send to the division:
             788          (a) a written record of criminal history, or certification of no criminal history record, as
             789      contained in the records of the Department of Public Safety in a timely manner after receipt of
             790      a fingerprint card from the division and a request for review of Department of Public Safety
             791      records; and
             792          (b) the results of the Federal Bureau of Investigation review concerning an applicant in
             793      a timely manner after receipt of information from the Federal Bureau of Investigation.
             794          (7) (a) The division shall charge each applicant for licensure as an alarm company or
             795      alarm company agent a fee, in accordance with Section 63J-1-504 , equal to the cost of
             796      performing the records reviews under this section.
             797          (b) The division shall pay the Department of Public Safety the costs of all records
             798      reviews, and the Department of Public Safety shall pay the Federal Bureau of Investigation the
             799      costs of records reviews under this section.
             800          (8) Information obtained by the division from the reviews of criminal history records of
             801      the Department of Public Safety and the Federal Bureau of Investigation shall be used or
             802      disseminated by the division only for the purpose of determining if an applicant for licensure as


             803      an alarm company or alarm company agent is qualified for licensure.
             804          (9) (a) An application for licensure under this chapter shall be denied if:
             805          (i) the applicant has had a previous license, which was issued under this chapter,
             806      suspended or revoked within one year prior to the date of the applicant's application;
             807          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             808          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             809      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             810      status, performing similar functions, or directly or indirectly controlling the applicant has
             811      served in any similar capacity with any person or entity which has had a previous license,
             812      which was issued under this chapter, suspended or revoked within one year prior to the date of
             813      the applicant's application; or
             814          (iii) (A) the applicant is an individual or sole proprietorship; and
             815          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             816      Subsection (9)(a)(ii)(B) in any entity which has had a previous license, which was issued under
             817      this chapter, suspended or revoked within one year prior to the date of the applicant's
             818      application.
             819          (b) An application for licensure under this chapter shall be reviewed by the appropriate
             820      licensing board prior to approval if:
             821          (i) the applicant has had a previous license, which was issued under this chapter,
             822      suspended or revoked more than one year prior to the date of the applicant's application;
             823          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             824          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             825      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             826      status, performing similar functions, or directly or indirectly controlling the applicant has
             827      served in any similar capacity with any person or entity which has had a previous license,
             828      which was issued under this chapter, suspended or revoked more than one year prior to the date
             829      of the applicant's application; or
             830          (iii) (A) the applicant is an individual or sole proprietorship; and
             831          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             832      Subsection (9)(b)(ii)(B) in any entity which has had a previous license, which was issued under
             833      this chapter, suspended or revoked more than one year prior to the date of the applicant's


             834      application.
             835          (10) (a) A licensee that is an unincorporated entity shall file an ownership status report
             836      with the division every 90 days after the day on which the license is issued if the licensee has as
             837      an owner an individual who:
             838          (i) owns an interest in the contractor that is an unincorporated entity;
             839          (ii) owns, directly or indirectly, less than an 8% interest in the unincorporated entity, as
             840      defined by rule made by the division in accordance with Title 63G, Chapter 3, Utah
             841      Administrative Rulemaking Act; and
             842          (iii) engages, or will engage, in a construction trade in Utah as an owner of the
             843      contractor described in Subsection (10)(a)(i).
             844          (b) An ownership status report required under this Subsection (10) shall:
             845          (i) list each addition or deletion of an owner:
             846          (A) for the first ownership status report, after the day on which the unincorporated
             847      entity is licensed under this chapter; and
             848          (B) for a subsequent ownership status report, after the day on which the previous
             849      ownership status report is filed;
             850          (ii) be in a format prescribed by the division that is consistent with a list provided
             851      under Subsection 58-55-302 (1)(e)(iv); and
             852          (iii) be accompanied by a fee set by the division in accordance with Section 63J-1-504
             853      if the ownership status report indicates there is a change described in Subsection (10)(b)(i).
             854          (c) The division may audit an ownership status report under this Subsection (10):
             855          (i) in the same manner as the division may audit a demonstration of financial
             856      responsibility under Section 58-55-306 ; and
             857          (ii) to determine compliance with Subsection 58-55-501 (24) or (25) or Subsection
             858      58-55-502 (8) or (9).
             859          (11) (a) An unincorporated entity that provides labor to an entity licensed under this
             860      chapter by providing an individual who owns an interest in the unincorporated entity to engage
             861      in a construction trade in Utah shall file with the division:
             862          (i) before the individual who owns an interest in the unincorporated entity engages in a
             863      construction trade in Utah, a current list of the one or more individuals who hold an ownership
             864      interest in the unincorporated entity that includes for each individual:


             865          (A) the individual's name, address, and Social Security number; and
             866          (B) whether the individual will engage in a construction trade; and
             867          (ii) every 90 days after the day on which the unincorporated entity provides the list
             868      described in Subsection (11)(a)(i), an ownership status report containing the information that
             869      would be required under Subsection (10) if the unincorporated entity were a licensed
             870      contractor.
             871          (b) When filing an ownership list described in Subsection (11)(a)(i) or an ownership
             872      status report described in Subsection (11)(a)(ii) an unincorporated entity shall pay a fee set by
             873      the division in accordance with Section 63J-1-504 .
             874          (12) This chapter may not be interpreted to create or support an express or implied
             875      independent contractor relationship between an unincorporated entity described in Subsection
             876      (10) or (11) and the owners of the unincorporated entity for any purpose, including income tax
             877      withholding.
             878          (13) A Social Security number provided under Subsection (1)(e)(iv) is a private record
             879      under Subsection 63G-2-302 (1)(h).
             880          Section 6. Section 58-55-302.3 is enacted to read:
             881          58-55-302.3. Transition provisions for residential heating, ventilation, and air
             882      conditioning contractors and technicians.
             883          (1) (a) Notwithstanding Section 58-55-302 , a person who, on May 8, 2012, holds a
             884      valid specialty contractor license issued by the division for the heating, ventilation, and air
             885      conditioning system trade is granted a license as a residential heating, ventilation, and air
             886      conditioning contractor.
             887          (b) The division shall issue a residential heating, ventilation, and air conditioning
             888      contractor license to each person described in Subsection (1)(a).
             889          (2) (a) Notwithstanding Subsection 58-55-302 (3)(k), an individual who, on May 8,
             890      2012, is a qualifier under Section 58-55-304 for a business entity licensee holding a valid
             891      specialty contractor's license for the heating, ventilation, and air conditioning system trade is
             892      granted status as a master residential heating, ventilation, and air conditioning technician.
             893          (b) The division shall issue a master residential heating, ventilation, and air
             894      conditioning technician license to each individual described in Subsection (2)(a).
             895          (c) Notwithstanding Subsection 58-55-302 (3)(k), for a master residential heating,


             896      ventilation, and air conditioning technician license issued before January 1, 2014, except for a
             897      license issued under Subsection (2)(b), an applicant shall:
             898          (i) produce satisfactory evidence of having completed at least six years full-time
             899      experience in the heating, ventilation, and air conditioning system trade, or its equivalent as
             900      defined by the division by rule; and
             901          (ii) pass a competency test established by the division.
             902          (3) Notwithstanding Subsection 58-55-302 (3)(l), for a journeyman residential heating,
             903      ventilation, and air conditioning technician license issued before January 1, 2014, an applicant
             904      shall produce satisfactory evidence of having completed at least four years full-time experience
             905      in the heating, ventilation, and air conditioning system trade, or its equivalent as the division
             906      defines by rule.
             907          Section 7. Section 58-55-302.7 is amended to read:
             908           58-55-302.7. Continuing education requirements for electricians, elevator
             909      mechanics, plumbers, and apprentice, journeyman, or master residential heating,
             910      ventilation, and air conditioning technicians.
             911          (1) As used in this section:
             912          (a) "Licensed electrician" means an individual licensed under this chapter as an
             913      apprentice electrician, journeyman electrician, master electrician, residential journeyman
             914      electrician, or residential master electrician.
             915          (b) "Licensed elevator mechanic" means an individual licensed under this chapter as an
             916      elevator mechanic.
             917          (c) "Licensed plumber" means an individual licensed under this chapter as an
             918      apprentice plumber, journeyman plumber, master plumber, residential journeyman plumber, or
             919      residential master plumber.
             920          (d) "Licensed residential heating, ventilation, and air conditioning technician" means
             921      an individual licensed under this chapter as an apprentice, journeyman, or master residential
             922      heating, ventilation, and air conditioning technician.
             923          (2) [Beginning December 1, 2010, during] During each two-year renewal cycle
             924      established by rule under Subsection 58-55-303 (1):
             925          (a) a licensed electrician shall complete 16 hours of continuing education under the
             926      continuing education program established under this section;


             927          (b) a licensed plumber shall complete 12 hours of continuing education under the
             928      continuing education program established under this section; [and]
             929          (c) a licensed elevator mechanic shall complete eight hours of continuing education
             930      under the continuing education program established under this section[.]; and
             931          (d) a licensed residential heating, ventilation, and air conditioning technician shall
             932      complete 12 hours of heating, ventilation, and air conditioning system fuel and energy
             933      efficiency education.
             934          (3) The commission shall, with the concurrence of the division, establish by rule:
             935          (a) a continuing education program for licensed electricians;
             936          (b) a continuing education program for licensed elevator mechanics; [and]
             937          (c) a continuing education program for licensed plumbers[.]; and
             938          (d) a continuing education program for licensed residential heating, ventilation, and air
             939      conditioning technicians.
             940          (4) The division may contract with a person to establish and maintain a continuing
             941      education registry to include:
             942          (a) an online application for a continuing education course provider to apply to the
             943      division for approval of the course for inclusion in the continuing education program;
             944          (b) a list of courses that the division has approved for inclusion in the continuing
             945      education program; and
             946          (c) a list of courses that:
             947          (i) a licensed electrician, licensed elevator mechanic, [or] licensed plumber, or licensed
             948      residential heating, ventilation, and air conditioning technician has completed under the
             949      continuing education program; and
             950          (ii) the licensed electrician, licensed elevator mechanic, [or] licensed plumber, or
             951      licensed residential heating, ventilation, and air conditioning technician may access to monitor
             952      compliance with the continuing education requirement under Subsection (2).
             953          (5) The division may charge a fee, established by the division under Section 63J-1-504 ,
             954      to administer the requirements of this section.
             955          Section 8. Section 58-55-303 is amended to read:
             956           58-55-303. Term of license -- Expiration -- Renewal.
             957          (1) (a) Each license issued under this chapter shall be issued in accordance with a


             958      two-year renewal cycle established by rule.
             959          (b) The division may by rule extend or shorten a renewal period by as much as one year
             960      to stagger the renewal cycle it administers.
             961          (2) At the time of renewal, the licensee shall show satisfactory evidence of:
             962          (a) continuing financial responsibility as required under Section 58-55-306 ;
             963          (b) for a contractor licensee, completion of six hours of approved continuing education,
             964      as required in Section 58-55-302.5 ; [and]
             965          (c) if the licensee is an apprentice electrician or plumber, journeyman electrician or
             966      plumber, master electrician or plumber, residential journeyman electrician or plumber, or
             967      residential master electrician or plumber, completion of the number of hours of continuing
             968      education specified under Section 58-55-302.7 [.]; and
             969          (d) for a residential heating, ventilation, and air conditioning technician licensee,
             970      having completed, during the two-year license renewal cycle, 12 hours of heating, ventilation,
             971      and air conditioning system fuel and electricity efficiency education approved by the division
             972      and the board.
             973          (3) Each license automatically expires on the expiration date shown on the license
             974      unless the licensee renews the license in accordance with Section 58-1-308 .
             975          (4) The requirements of Subsection 58-55-302 [(9)](10) [shall] also apply to applicants
             976      seeking to renew or reinstate a license.
             977          (5) In addition to any other requirements imposed by law, if a license has been
             978      suspended or revoked for any reason, the applicant:
             979          (a) shall pay in full all fines imposed by the division;
             980          (b) resolve any outstanding citations or disciplinary actions with the division;
             981          (c) satisfy any Section 58-55-503 judgment and sentence or nontrial resolution;
             982          (d) complete a new financial responsibility review as required under Section
             983      58-55-306 , using only titled assets; and
             984          (e) pay in full any reimbursement amount as provided in Title 38, Chapter 11,
             985      Residence Lien Restriction and Lien Recovery Fund Act.
             986          Section 9. Section 58-55-305 is amended to read:
             987           58-55-305. Exemptions from licensure.
             988          (1) In addition to the exemptions from licensure in Section 58-1-307 , the following


             989      persons may engage in acts or practices included within the practice of construction trades,
             990      subject to the stated circumstances and limitations, without being licensed under this chapter:
             991          (a) an authorized representative of the United States government or an authorized
             992      employee of the state or any of its political subdivisions when working on construction work of
             993      the state or the subdivision, and when acting within the terms of the person's trust, office, or
             994      employment;
             995          (b) a person engaged in construction or operation incidental to the construction and
             996      repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
             997      districts, and drainage districts or construction and repair relating to farming, dairying,
             998      agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
             999      excavations, well drilling, as defined in Section 73-3-25 , hauling to and from construction
             1000      sites, and lumbering;
             1001          (c) public utilities operating under the rules of the Public Service Commission on work
             1002      incidental to their own business;
             1003          (d) sole owners of property engaged in building:
             1004          (i) no more than one residential structure per year and no more than three residential
             1005      structures per five years on their property for their own noncommercial, nonpublic use; except,
             1006      a person other than the property owner or individuals described in Subsection (1)(e), who
             1007      engages in building the structure must be licensed under this chapter if the person is otherwise
             1008      required to be licensed under this chapter; or
             1009          (ii) structures on their property for their own noncommercial, nonpublic use which are
             1010      incidental to a residential structure on the property, including sheds, carports, or detached
             1011      garages;
             1012          (e) (i) a person engaged in construction or renovation of a residential building for
             1013      noncommercial, nonpublic use if that person:
             1014          (A) works without compensation other than token compensation that is not considered
             1015      salary or wages; and
             1016          (B) works under the direction of the property owner who engages in building the
             1017      structure; and
             1018          (ii) as used in this Subsection (1)(e), "token compensation" means compensation paid
             1019      by a sole owner of property exempted from licensure under Subsection (1)(d) to a person


             1020      exempted from licensure under this Subsection (1)(e), that is:
             1021          (A) minimal in value when compared with the fair market value of the services
             1022      provided by the person;
             1023          (B) not related to the fair market value of the services provided by the person; and
             1024          (C) is incidental to the providing of services by the person including paying for or
             1025      providing meals or refreshment while services are being provided, or paying reasonable
             1026      transportation costs incurred by the person in travel to the site of construction;
             1027          (f) a person engaged in the sale or merchandising of personal property that by its design
             1028      or manufacture may be attached, installed, or otherwise affixed to real property who has
             1029      contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
             1030      attach that property;
             1031          (g) a contractor submitting a bid on a federal aid highway project, if, before
             1032      undertaking construction under that bid, the contractor is licensed under this chapter;
             1033          (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
             1034      improvement of a building with a contracted or agreed value of less than $3,000, including
             1035      both labor and materials, and including all changes or additions to the contracted or agreed
             1036      upon work; and
             1037          (ii) notwithstanding Subsection (1)(h)(i) and except as otherwise provided in this
             1038      section:
             1039          (A) work in the plumbing [and], electrical, and residential heating, ventilation, and air
             1040      conditioning system trades on a project described in Subsection (1)(h)(i) [project] within any
             1041      six month period of time:
             1042          (I) [must] shall be performed by a licensed electrical [or], plumbing, or residential
             1043      heating, ventilation, and air conditioning contractor, respectively, if the project involves an
             1044      electrical [or], plumbing, or residential heating, ventilation, and air conditioning system; [and]
             1045          (II) may be performed by a licensed journeyman electrician or plumber or an individual
             1046      referred to in Subsection (1)(h)(ii)(A)(I), if the project involves a component of the system
             1047      such as a faucet, toilet, fixture, device, [outlet] receptacle, or electrical switch; and
             1048          (III) may be performed by a licensed residential heating, ventilation, and air
             1049      conditioning technician if the project involves a component of the system such as a thermostat,
             1050      transformer, relay, compressor, motor, or blower;


             1051          (B) installation, repair, or replacement of a residential or commercial gas appliance or a
             1052      combustion system on a Subsection (1)(h)(i) project [must] shall be performed by a person who
             1053      has received certification under Subsection 58-55-308 (2) except as otherwise provided in
             1054      Subsection 58-55-308 (2)(d) or 58-55-308 (3);
             1055          (C) installation, repair, or replacement of water-based fire protection systems on a
             1056      Subsection (1)(h)(i) project [must] shall be performed by a licensed fire suppression systems
             1057      contractor or a licensed journeyman plumber;
             1058          (D) work as an alarm business or company or as an alarm company agent shall be
             1059      performed by a licensed alarm business or company or a licensed alarm company agent, except
             1060      as otherwise provided in this chapter;
             1061          (E) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i)
             1062      project [must] shall be performed by a licensed alarm business or company or a licensed alarm
             1063      company agent;
             1064          (F) installation, repair, or replacement of a residential heating, ventilation, or air
             1065      conditioning system [(HVAC)] on a project described in Subsection (1)(h)(i) [project must]
             1066      shall be performed by [an HVAC] a residential heating, ventilation, and air conditioning
             1067      contractor licensed by the division;
             1068          (G) installation, repair, or replacement of a radon mitigation system or a soil
             1069      depressurization system [must] shall be performed by a licensed contractor; and
             1070          (H) if the total value of the project is greater than $1,000, the person shall file with the
             1071      division a one-time affirmation, subject to periodic reaffirmation as established by division
             1072      rule, that the person has:
             1073          (I) public liability insurance in coverage amounts and form established by division
             1074      rule; and
             1075          (II) if applicable, workers compensation insurance which would cover an employee of
             1076      the person if that employee worked on the construction project;
             1077          (i) a person practicing a specialty contractor classification or construction trade which
             1078      the director does not classify by administrative rule as significantly impacting the public's
             1079      health, safety, and welfare;
             1080          (j) owners and lessees of property and persons regularly employed for wages by owners
             1081      or lessees of property or their agents for the purpose of maintaining the property, are exempt


             1082      from this chapter when doing work upon the property;
             1083          (k) (i) a person engaged in minor plumbing work that is incidental, as defined by the
             1084      division by rule, to the replacement or repair of a fixture or an appliance in a residential or
             1085      small commercial building, or structure used for agricultural use, as defined in Section
             1086      15A-1-202 , provided that no modification is made to:
             1087          (A) existing culinary water, soil, waste, or vent piping; or
             1088          (B) a gas appliance or combustion system; and
             1089          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
             1090      an appliance is not included in the exemption provided under Subsection (1)(k)(i);
             1091          (l) a person who ordinarily would be subject to the plumber licensure requirements
             1092      under this chapter when installing or repairing a water conditioner or other water treatment
             1093      apparatus if the conditioner or apparatus:
             1094          (i) meets the appropriate state construction codes or local plumbing standards; and
             1095          (ii) is installed or repaired under the direction of a person authorized to do the work
             1096      under an appropriate specialty contractor license;
             1097          (m) a person who ordinarily would be subject to the electrician licensure requirements
             1098      under this chapter when employed by:
             1099          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
             1100      contractors or constructors, or street railway systems; or
             1101          (ii) public service corporations, rural electrification associations, or municipal utilities
             1102      who generate, distribute, or sell electrical energy for light, heat, or power;
             1103          (n) a person involved in minor electrical work incidental to a mechanical or service
             1104      installation;
             1105          (o) a student participating in construction trade education and training programs
             1106      approved by the commission with the concurrence of the director under the condition that:
             1107          (i) all work intended as a part of a finished product on which there would normally be
             1108      an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
             1109      building inspector; and
             1110          (ii) a licensed contractor obtains the necessary building permits;
             1111          (p) a delivery person when replacing any of the following existing equipment with a
             1112      new gas appliance, provided there is an existing gas shutoff valve at the appliance:


             1113          (i) gas range;
             1114          (ii) gas dryer;
             1115          (iii) outdoor gas barbeque; or
             1116          (iv) outdoor gas patio heater;
             1117          (q) a person performing maintenance on an elevator [as defined in Subsection
             1118      58-55-102 (14)], if the maintenance is not related to the operating integrity of the elevator; and
             1119          (r) an apprentice or helper of an elevator mechanic licensed under this chapter when
             1120      working under the general direction of the licensed elevator mechanic.
             1121          (2) A compliance agency as defined in Section 15A-1-202 that issues a building permit
             1122      to a person requesting a permit as a sole owner of property referred to in Subsection (1)(d) shall
             1123      notify the division, in writing or through electronic transmission, of the issuance of the permit.
             1124          Section 10. Section 58-55-308 is amended to read:
             1125           58-55-308. Scope of practice -- Installation, repair, maintenance, cleaning, or
             1126      replacement of gas appliance or combustion system -- Rules.
             1127          (1) (a) The commission, with the concurrence of the director, may adopt reasonable
             1128      rules pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to define and
             1129      limit the scope of practice and operating standards of the classifications and subclassifications
             1130      licensed under this chapter in a manner consistent with established practice in the relevant
             1131      industry.
             1132          (b) The commission and the director may limit the field and scope of operations of a
             1133      licensee under this chapter in accordance with the rules and the public health, safety, and
             1134      welfare, based on the licensee's education, training, experience, knowledge, and financial
             1135      responsibility.
             1136          (2) (a) The work and scope of practice covered by this Subsection (2) is the
             1137      installation, repair, maintenance, cleaning, or replacement of a residential or commercial gas
             1138      appliance or combustion system.
             1139          (b) The provisions of this Subsection (2) apply to any:
             1140          (i) licensee under this chapter whose license authorizes the licensee to perform the
             1141      work described in Subsection (2)(a); and
             1142          (ii) person exempt from licensure under Subsection 58-55-305 (1)(h).
             1143          (c) Any person described in Subsection (2)(b) that performs work described in


             1144      Subsection (2)(a):
             1145          (i) must first receive training and certification as specified in rules adopted by the
             1146      division; and
             1147          (ii) shall ensure that any employee authorized under other provisions of this chapter to
             1148      perform work described in Subsection (2)(a) has first received training and certification as
             1149      specified in rules adopted by the division.
             1150          (d) The division may exempt from the training requirements adopted under Subsection
             1151      (2)(c) a person that has adequate experience, as determined by the division.
             1152          (3) The division may exempt the following individuals from the certification
             1153      requirements adopted under Subsection (2)(c):
             1154          (a) a person who has passed a test equivalent to the level of testing required by the
             1155      division for certification, or has completed an apprenticeship program that teaches the
             1156      installation of gas line appliances and is approved by the Federal Bureau of Apprenticeship
             1157      Training; and
             1158          (b) a person working under the immediate one-to-one supervision of a certified natural
             1159      gas technician or a person exempt from certification.
             1160          (4) [This section does not prohibit a] A licensed specialty contractor [from accepting
             1161      and entering] may accept and enter into a contract involving [the use of two or more crafts or
             1162      trades if the performance of the], and perform work in [the], crafts or trades[,] other than [that]
             1163      those in which the contractor is licensed, if the work in those other crafts or trades is incidental
             1164      [and supplemental] to the work for which the contractor is licensed.
             1165          Section 11. Section 58-55-501 is amended to read:
             1166           58-55-501. Unlawful conduct.
             1167          Unlawful conduct includes:
             1168          (1) engaging in a construction trade, acting as a contractor, an alarm business or
             1169      company, or an alarm company agent, or representing oneself to be engaged in a construction
             1170      trade or to be acting as a contractor in a construction trade requiring licensure, unless the
             1171      person doing any of these is appropriately licensed or exempted from licensure under this
             1172      chapter;
             1173          (2) acting in a construction trade, as an alarm business or company, or as an alarm
             1174      company agent beyond the scope of the license held;


             1175          (3) hiring or employing in any manner an unlicensed person, other than an employee
             1176      for wages who is not required to be licensed under this chapter, to engage in a construction
             1177      trade for which licensure is required or to act as a contractor or subcontractor in a construction
             1178      trade requiring licensure;
             1179          (4) applying for or obtaining a building permit either for oneself or another when not
             1180      licensed or exempted from licensure as a contractor under this chapter;
             1181          (5) issuing a building permit to any person for whom there is no evidence of a current
             1182      license or exemption from licensure as a contractor under this chapter;
             1183          (6) applying for or obtaining a building permit for the benefit of or on behalf of any
             1184      other person who is required to be licensed under this chapter but who is not licensed or is
             1185      otherwise not entitled to obtain or receive the benefit of the building permit;
             1186          (7) failing to obtain a building permit when required by law or rule;
             1187          (8) submitting a bid for any work for which a license is required under this chapter by a
             1188      person not licensed or exempted from licensure as a contractor under this chapter;
             1189          (9) willfully or deliberately misrepresenting or omitting a material fact in connection
             1190      with an application to obtain or renew a license under this chapter;
             1191          (10) allowing one's license to be used by another except as provided by statute or rule;
             1192          (11) doing business under a name other than the name appearing on the license, except
             1193      as permitted by statute or rule;
             1194          (12) [if licensed as a specialty contractor in the electrical trade or plumbing trade,
             1195      journeyman plumber, residential journeyman plumber, journeyman electrician, master
             1196      electrician, or residential electrician, failing to directly supervise] a licensed supervisor failing
             1197      to provide immediate supervision of an apprentice under [one's] the supervisor's supervision or
             1198      exceeding the number of apprentices [one] the supervisor is allowed to have under the
             1199      [speciality contractor's] supervisor's supervision[;] if the supervisor is licensed as:
             1200          (a) a specialty contractor in the electrical, plumbing, or residential heating, ventilation,
             1201      and air conditioning trade;
             1202          (b) a master, journeyman, or residential electrician;
             1203          (c) a journeyman or residential journeyman plumber; or
             1204          (d) a master or journeyman residential heating, ventilation, and air conditioning
             1205      technician;


             1206          (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
             1207      funds in payment for a specific project from an owner or any other person, which funds are to
             1208      pay for work performed or materials and services furnished for that specific project, and after
             1209      receiving the funds to exercise unauthorized control over the funds by failing to pay the full
             1210      amounts due and payable to persons who performed work or furnished materials or services
             1211      within a reasonable period of time;
             1212          (14) employing an unlicensed alarm business or company or an unlicensed individual
             1213      as an alarm company agent, except as permitted under the exemption from licensure provisions
             1214      under Section 58-1-307 ;
             1215          (15) if licensed as an alarm company or alarm company agent, filing with the division
             1216      fingerprint cards for an applicant which are not those of the applicant, or are in any other way
             1217      false or fraudulent and intended to mislead the division in its consideration of the applicant for
             1218      licensure;
             1219          (16) if licensed under this chapter, willfully or deliberately disregarding or violating:
             1220          (a) the building or construction laws of this state or any political subdivision;
             1221          (b) the safety and labor laws applicable to a project;
             1222          (c) any provision of the health laws applicable to a project;
             1223          (d) the workers' compensation insurance laws of the state applicable to a project;
             1224          (e) the laws governing withholdings for employee state and federal income taxes,
             1225      unemployment taxes, Social Security payroll taxes, or other required withholdings; or
             1226          (f) reporting, notification, and filing laws of this state or the federal government;
             1227          (17) aiding or abetting any person in evading the provisions of this chapter or rules
             1228      established under the authority of the division to govern this chapter;
             1229          (18) engaging in the construction trade or as a contractor for the construction of
             1230      residences of up to two units when not currently registered or exempt from registration as a
             1231      qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
             1232      Fund Act;
             1233          (19) failing, as an original contractor, as defined in Section 38-11-102 , to include in a
             1234      written contract the notification required in Section 38-11-108 ;
             1235          (20) wrongfully filing a mechanics' lien in violation of Section 38-1-25 ;
             1236          (21) if licensed as a contractor, not completing the approved continuing education


             1237      required under Section 58-55-302.5 ;
             1238          (22) an alarm company allowing an employee with a temporary license under Section
             1239      58-55-312 to engage in conduct on behalf of the company outside the scope of the temporary
             1240      license, as provided in Subsection 58-55-312 (3)(a)(ii);
             1241          (23) an alarm company agent under a temporary license under Section 58-55-312
             1242      engaging in conduct outside the scope of the temporary license, as provided in Subsection
             1243      58-55-312 (3)(a)(ii);
             1244          (24) (a) an unincorporated entity licensed under this chapter having an individual who
             1245      owns an interest in the unincorporated entity engage in a construction trade in Utah while not
             1246      lawfully present in the United States; or
             1247          (b) an unincorporated entity providing labor to an entity licensed under this chapter by
             1248      providing an individual who owns an interest in the unincorporated entity to engage in a
             1249      construction trade in Utah while not lawfully present in the United States;
             1250          (25) an unincorporated entity failing to provide the following for an individual who
             1251      engages, or will engage, in a construction trade in Utah for the unincorporated entity, or for an
             1252      individual who engages, or will engage, in a construction trade in Utah for a separate entity for
             1253      which the unincorporated entity provides the individual as labor:
             1254          (a) workers' compensation coverage:
             1255          (i) to the extent required by Title 34A, Chapter 2, Workers' Compensation Act, and
             1256      Title 34A, Chapter 3, Utah Occupational Disease Act; or
             1257          (ii) that would be required under the chapters listed in Subsection (25)(a)(i) if the
             1258      unincorporated entity were licensed under this chapter; and
             1259          (b) unemployment compensation in accordance with Title 35A, Chapter 4,
             1260      Employment Security Act, for an individual who owns, directly or indirectly, less than an 8%
             1261      interest in the unincorporated entity, as defined by rule made by the division in accordance with
             1262      Title 63G, Chapter 3, Utah Administrative Rulemaking Act; [or]
             1263          (26) the failure of a sign installation contractor or nonelectrical outdoor advertising
             1264      sign contractor, as classified and defined in division rules, to:
             1265          (a) display the contractor's license number prominently on a vehicle that:
             1266          (i) the contractor uses; and
             1267          (ii) displays the contractor's business name; or


             1268          (b) carry a copy of the contractor's license in any other vehicle that the contractor uses
             1269      at a job site, whether or not the vehicle is owned by the contractor[.]; and
             1270          (27) if licensed as a heating, ventilation, and air conditioning technician, failing to
             1271      complete 12 hours of heating, ventilation, and air conditioning system fuel and energy
             1272      efficiency education as required in Subsection 58-55-302.7 (2)(d).
             1273          Section 12. Section 58-55-503 is amended to read:
             1274           58-55-503. Penalty for unlawful conduct -- Citations.
             1275          (1) (a) (i) A person who violates Subsection 58-55-308 (2), Subsection 58-55-501 (1),
             1276      (2), (3), (4), (5), (6), (7), (9), (10), (12), (14), (15), (22), (23), (24), (25), [or] (26), or (27), or
             1277      Subsection 58-55-504 (2), or who fails to comply with a citation issued under this section after
             1278      it is final, is guilty of a class A misdemeanor.
             1279          (ii) As used in this section in reference to Subsection 58-55-504 (2), "person" means an
             1280      individual and does not include a sole proprietorship, joint venture, corporation, limited
             1281      liability company, association, or organization of any type.
             1282          (b) A person who violates the provisions of Subsection 58-55-501 (8) may not be
             1283      awarded and may not accept a contract for the performance of the work.
             1284          (2) A person who violates the provisions of Subsection 58-55-501 (13) is guilty of an
             1285      infraction unless the violator did so with the intent to deprive the person to whom money is to
             1286      be paid of the money received, in which case the violator is guilty of theft, as classified in
             1287      Section 76-6-412 .
             1288          (3) Grounds for immediate suspension of the licensee's license by the division and the
             1289      commission include the issuance of a citation for violation of Subsection 58-55-308 (2), Section
             1290      58-55-501 , or Subsection 58-55-504 (2), or the failure by a licensee to make application to,
             1291      report to, or notify the division with respect to any matter for which application, notification, or
             1292      reporting is required under this chapter or rules adopted under this chapter, including applying
             1293      to the division for a new license to engage in a new specialty classification or to do business
             1294      under a new form of organization or business structure, filing with the division current
             1295      financial statements, notifying the division concerning loss of insurance coverage, or change in
             1296      qualifier.
             1297          (4) (a) If upon inspection or investigation, the division concludes that a person has
             1298      violated the provisions of Subsection 58-55-308 (2) or [Subsections] Subsection 58-55-501 (1),


             1299      (2), (3), (9), (10), (12), (14), (19), (21), (22), (23), (24), (25), [or] (26), or (27), or Subsection
             1300      58-55-504 (2), or any rule or order issued with respect to these subsections, and that disciplinary
             1301      action is appropriate, the director or the director's designee from within the division shall
             1302      promptly issue a citation to the person according to this chapter and any pertinent rules, attempt
             1303      to negotiate a stipulated settlement, or notify the person to appear before an adjudicative
             1304      proceeding conducted under Title 63G, Chapter 4, Administrative Procedures Act.
             1305          (i) A person who is in violation of the provisions of Subsection 58-55-308 (2),
             1306      Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19), (21), (22), (23), (24), (25), [or]
             1307      (26), or (27), or Subsection 58-55-504 (2), as evidenced by an uncontested citation, a stipulated
             1308      settlement, or by a finding of violation in an adjudicative proceeding, may be assessed a fine
             1309      pursuant to this Subsection (4) and may, in addition to or in lieu of, be ordered to cease and
             1310      desist from violating Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9), (10),
             1311      (12), (14), (19), (21), (24), (25), [or] (26), or (27), or Subsection 58-55-504 (2).
             1312          (ii) Except for a cease and desist order, the licensure sanctions cited in Section
             1313      58-55-401 may not be assessed through a citation.
             1314          (b) (i) A citation shall be in writing and describe with particularity the nature of the
             1315      violation, including a reference to the provision of the chapter, rule, or order alleged to have
             1316      been violated.
             1317          (ii) A citation shall clearly state that the recipient must notify the division in writing
             1318      within 20 calendar days of service of the citation if the recipient wishes to contest the citation
             1319      at a hearing conducted under Title 63G, Chapter 4, Administrative Procedures Act.
             1320          (iii) A citation shall clearly explain the consequences of failure to timely contest the
             1321      citation or to make payment of any fines assessed by the citation within the time specified in
             1322      the citation.
             1323          (c) A citation issued under this section, or a copy of a citation, may be served upon a
             1324      person upon whom a summons may be served:
             1325          (i) in accordance with the Utah Rules of Civil Procedure;
             1326          (ii) personally or upon the person's agent by a division investigator or by a person
             1327      specially designated by the director; or
             1328          (iii) by mail.
             1329          (d) (i) If within 20 calendar days from the service of a citation, the person to whom the


             1330      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             1331      final order of the division and is not subject to further agency review.
             1332          (ii) The period to contest a citation may be extended by the division for cause.
             1333          (e) The division may refuse to issue or renew, suspend, revoke, or place on probation
             1334      the license of a licensee who fails to comply with a citation after it becomes final.
             1335          (f) The failure of an applicant for licensure to comply with a citation after it becomes
             1336      final is a ground for denial of license.
             1337          (g) A citation may not be issued under this section after the expiration of six months
             1338      following the occurrence of a violation.
             1339          (h) The director or the director's designee shall assess a fine in accordance with the
             1340      following:
             1341          (i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
             1342          (ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000;
             1343      and
             1344          (iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to
             1345      $2,000 for each day of continued offense.
             1346          (i) (i) For purposes of issuing a final order under this section and assessing a fine under
             1347      Subsection (4)(h), an offense constitutes a second or subsequent offense if:
             1348          (A) the division previously issued a final order determining that a person committed a
             1349      first or second offense in violation of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2),
             1350      (3), (9), (10), (12), (14), (19), (24), (25), [or] (26), or (27), or Subsection 58-55-504 (2); or
             1351          (B) (I) the division initiated an action for a first or second offense;
             1352          (II) a final order has not been issued by the division in the action initiated under
             1353      Subsection (4)(i)(i)(B)(I);
             1354          (III) the division determines during an investigation that occurred after the initiation of
             1355      the action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent
             1356      violation of the provisions of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9),
             1357      (10), (12), (14), (19), (24), (25), [or] (26), or (27), or Subsection 58-55-504 (2); and
             1358          (IV) after determining that the person committed a second or subsequent offense under
             1359      Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under
             1360      Subsection (4)(i)(i)(B)(I).


             1361          (ii) In issuing a final order for a second or subsequent offense under Subsection
             1362      (4)(i)(i), the division shall comply with the requirements of this section.
             1363          (j) In addition to any other licensure sanction or fine imposed under this section, the
             1364      division shall revoke the license of a licensee that violates Subsection 58-55-501 (24) or (25)
             1365      two or more times within a 12-month period, unless, with respect to a violation of Subsection
             1366      58-55-501 (24), the licensee can demonstrate that the licensee successfully verified the federal
             1367      legal working status of the individual who was the subject of the violation using a status
             1368      verification system, as defined in Section 13-47-102 .
             1369          (k) For purposes of this Subsection (4), a violation of Subsection 58-55-501 (24) or (25)
             1370      for each individual is considered a separate violation.
             1371          (5) (a) A penalty imposed by the director under Subsection (4)(h) shall be deposited
             1372      into the Commerce Service Account created by Section 13-1-2 .
             1373          (b) A penalty that is not paid may be collected by the director by either referring the
             1374      matter to a collection agency or bringing an action in the district court of the county in which
             1375      the person against whom the penalty is imposed resides or in the county where the office of the
             1376      director is located.
             1377          (c) A county attorney or the attorney general of the state is to provide legal assistance
             1378      and advice to the director in any action to collect the penalty.
             1379          (d) In an action brought to enforce the provisions of this section, reasonable attorney
             1380      fees and costs shall be awarded.




Legislative Review Note
    as of 1-31-12 11:15 AM


Office of Legislative Research and General Counsel


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