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H.B. 12 Enrolled

             1     

ALARM COMPANY EMPLOYEE LICENSING

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: James A. Dunnigan

             5     
Senate Sponsor: John L. Valentine

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to the licensing of alarm company employees.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies the definition of "alarm company agent" to exclude certain alarm company
             13      employees from licensing requirements; and
             14          .    enacts a definition of "sensitive alarm system information."
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      AMENDS:
             21          58-55-102, as last amended by Laws of Utah 2012, Chapter 25
             22     
             23      Be it enacted by the Legislature of the state of Utah:
             24          Section 1. Section 58-55-102 is amended to read:
             25           58-55-102. Definitions.
             26          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             27          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
             28      maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
             29      except as provided in Subsection (1)(b).


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


             58      plumber.
             59          (6) "Approved continuing education" means instruction provided through courses
             60      under a program established under Subsection 58-55-302.5 (2).
             61          (7) "Board" means the Electrician Licensing Board, Alarm System Security and
             62      Licensing Board, or Plumbers Licensing Board created in Section 58-55-201 .
             63          (8) "Combustion system" means an assembly consisting of:
             64          (a) piping and components with a means for conveying, either continuously or
             65      intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
             66      appliance;
             67          (b) the electric control and combustion air supply and venting systems, including air
             68      ducts; and
             69          (c) components intended to achieve control of quantity, flow, and pressure.
             70          (9) "Commission" means the Construction Services Commission created under Section
             71      58-55-103 .
             72          (10) "Construction trade" means any trade or occupation involving:
             73          (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition
             74      to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
             75      or other project, development, or improvement to other than personal property; and
             76          (ii) constructing, remodeling, or repairing a manufactured home or mobile home as
             77      defined in Section 15A-1-302 ; or
             78          (b) installation or repair of a residential or commercial natural gas appliance or
             79      combustion system.
             80          (11) "Construction trades instructor" means a person licensed under this chapter to
             81      teach one or more construction trades in both a classroom and project environment, where a
             82      project is intended for sale to or use by the public and is completed under the direction of the
             83      instructor, who has no economic interest in the project.
             84          (12) (a) "Contractor" means any person who for compensation other than wages as an
             85      employee undertakes any work in the construction, plumbing, or electrical trade for which


             86      licensure is required under this chapter and includes:
             87          (i) a person who builds any structure on the person's own property for the purpose of
             88      sale or who builds any structure intended for public use on the person's own property;
             89          (ii) any person who represents that the person is a contractor by advertising or any
             90      other means;
             91          (iii) any person engaged as a maintenance person, other than an employee, who
             92      regularly engages in activities set forth under the definition of "construction trade";
             93          (iv) any person engaged in any construction trade for which licensure is required under
             94      this chapter; or
             95          (v) a construction manager who performs management and counseling services on a
             96      construction project for a fee.
             97          (b) "Contractor" does not include an alarm company or alarm company agent.
             98          (13) (a) "Electrical trade" means the performance of any electrical work involved in the
             99      installation, construction, alteration, change, repair, removal, or maintenance of facilities,
             100      buildings, or appendages or appurtenances.
             101          (b) "Electrical trade" does not include:
             102          (i) transporting or handling electrical materials;
             103          (ii) preparing clearance for raceways for wiring; or
             104          (iii) work commonly done by unskilled labor on any installations under the exclusive
             105      control of electrical utilities.
             106          (c) For purposes of Subsection (13)(b):
             107          (i) no more than one unlicensed person may be so employed unless more than five
             108      licensed electricians are employed by the shop; and
             109          (ii) a shop may not employ unlicensed persons in excess of the five-to-one ratio
             110      permitted by this Subsection (13)(c).
             111          (14) "Elevator" has the same meaning as defined in Section 34A-7-202 , except that for
             112      purposes of this chapter it does not mean a stair chair, a vertical platform lift, or an incline
             113      platform lift.


             114          (15) "Elevator contractor" means a sole proprietor, firm, or corporation licensed under
             115      this chapter that is engaged in the business of erecting, constructing, installing, altering,
             116      servicing, repairing, or maintaining an elevator.
             117          (16) "Elevator mechanic" means an individual who is licensed under this chapter as an
             118      elevator mechanic and who is engaged in erecting, constructing, installing, altering, servicing,
             119      repairing, or maintaining an elevator under the immediate supervision of an elevator contractor.
             120          (17) "Employee" means an individual as defined by the division by rule giving
             121      consideration to the definition adopted by the Internal Revenue Service and the Department of
             122      Workforce Services.
             123          (18) "Engage in a construction trade" means to:
             124          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
             125      in a construction trade; or
             126          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
             127      to believe one is or will act as a contractor.
             128          (19) (a) "Financial responsibility" means a demonstration of a current and expected
             129      future condition of financial solvency evidencing a reasonable expectation to the division and
             130      the board that an applicant or licensee can successfully engage in business as a contractor
             131      without jeopardy to the public health, safety, and welfare.
             132          (b) Financial responsibility may be determined by an evaluation of the total history
             133      concerning the licensee or applicant including past, present, and expected condition and record
             134      of financial solvency and business conduct.
             135          (20) "Gas appliance" means any device that uses natural gas to produce light, heat,
             136      power, steam, hot water, refrigeration, or air conditioning.
             137          (21) (a) "General building contractor" means a person licensed under this chapter as a
             138      general building contractor qualified by education, training, experience, and knowledge to
             139      perform or superintend construction of structures for the support, shelter, and enclosure of
             140      persons, animals, chattels, or movable property of any kind or any of the components of that
             141      construction except plumbing, electrical work, mechanical work, work related to the operating


             142      integrity of an elevator, and manufactured housing installation, for which the general building
             143      contractor shall employ the services of a contractor licensed in the particular specialty, except
             144      that a general building contractor engaged in the construction of single-family and multifamily
             145      residences up to four units may perform the mechanical work and hire a licensed plumber or
             146      electrician as an employee.
             147          (b) The division may by rule exclude general building contractors from engaging in the
             148      performance of other construction specialties in which there is represented a substantial risk to
             149      the public health, safety, and welfare, and for which a license is required unless that general
             150      building contractor holds a valid license in that specialty classification.
             151          (22) (a) "General engineering contractor" means a person licensed under this chapter as
             152      a general engineering contractor qualified by education, training, experience, and knowledge to
             153      perform construction of fixed works in any of the following: irrigation, drainage, water, power,
             154      water supply, flood control, inland waterways, harbors, railroads, highways, tunnels, airports
             155      and runways, sewers and bridges, refineries, pipelines, chemical and industrial plants requiring
             156      specialized engineering knowledge and skill, piers, and foundations, or any of the components
             157      of those works.
             158          (b) A general engineering contractor may not perform construction of structures built
             159      primarily for the support, shelter, and enclosure of persons, animals, and chattels.
             160          (23) "Immediate supervision" means reasonable direction, oversight, inspection, and
             161      evaluation of the work of a person:
             162          (a) as the division specifies in rule;
             163          (b) by, as applicable, a qualified electrician or plumber;
             164          (c) as part of a planned program of training; and
             165          (d) to ensure that the end result complies with applicable standards.
             166          (24) "Individual" means a natural person.
             167          (25) "Journeyman electrician" means a person licensed under this chapter as a
             168      journeyman electrician having the qualifications, training, experience, and knowledge to wire,
             169      install, and repair electrical apparatus and equipment for light, heat, power, and other purposes.


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


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


             226      residential master plumber having the qualifications, training, experience, and knowledge to
             227      properly plan and layout projects and supervise persons in the plumbing trade as limited to the
             228      plumbing of residential buildings.
             229          (38) "Residential project," as it relates to an electrician or electrical contractor, means
             230      buildings primarily wired with nonmetallic sheathed cable, in accordance with standard rules
             231      and regulations governing this work, including the National Electrical Code, and in which the
             232      voltage does not exceed 250 volts line to line and 125 volts to ground.
             233          (39) "Sensitive alarm system information" means:
             234          (a) a pass code or other code used in the operation of an alarm system;
             235          (b) information on the location of alarm system components at the premises of a
             236      customer of the alarm business providing the alarm system;
             237          (c) information that would allow the circumvention, bypass, deactivation, or other
             238      compromise of an alarm system of a customer of the alarm business providing the alarm
             239      system; and
             240          (d) any other similar information that the division by rule determines to be information
             241      that an individual employed by an alarm business should use or have access to only if the
             242      individual is licensed as provided in this chapter.
             243          [(39)] (40) (a) "Specialty contractor" means a person licensed under this chapter under
             244      a specialty contractor classification established by rule, who is qualified by education, training,
             245      experience, and knowledge to perform those construction trades and crafts requiring
             246      specialized skill, the regulation of which are determined by the division to be in the best
             247      interest of the public health, safety, and welfare.
             248          (b) A specialty contractor may perform work in crafts or trades other than those in
             249      which the specialty contractor is licensed if they are incidental to the performance of the
             250      specialty contractor's licensed craft or trade.
             251          [(40)] (41) "Unincorporated entity" means an entity that is not:
             252          (a) an individual;
             253          (b) a corporation; or


             254          (c) publicly traded.
             255          [(41)] (42) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
             256          [(42)] (43) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-55-502
             257      and as may be further defined by rule.
             258          [(43)] (44) "Wages" means amounts due to an employee for labor or services whether
             259      the amount is fixed or ascertained on a time, task, piece, commission, or other basis for
             260      calculating the amount.


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