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Second Substitute S.B. 102

Representative Ryan D. Wilcox proposes the following substitute bill:


             1     
CONTRACTOR LICENSING AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
House Sponsor: Kay J. Christofferson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah Construction Trades Licensing Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    establishes that the experience requirement for a contractor license includes two
             13      years of full-time paid employment;
             14          .    requires that before a course may be included in the program of approved
             15      continuing education for contractors, the Construction Services Commission shall
             16      invite and consider written input regarding the proposed course from:
             17              .    the Associated General Contractors of Utah;
             18              .    the Home Builders Association of Utah;
             19              .    the Utah Subcontractors Council;
             20              .    the Utah Plumbing & Heating Contractors Association;
             21              .    the Independent Electrical Contractors of Utah; and
             22              .    the Rocky Mountain Gas Association;
             23          .    exempts a person from licensure who is installing an outdoor, prebuilt hot tub; and
             24          .    makes technical changes.
             25      Money Appropriated in this Bill:


             26          None
             27      Other Special Clauses:
             28          None
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          58-55-302, as last amended by Laws of Utah 2012, Chapter 192
             32          58-55-302.5, as enacted by Laws of Utah 2010, Chapter 53
             33          58-55-305, as last amended by Laws of Utah 2011, Chapter 14
             34     
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 58-55-302 is amended to read:
             37           58-55-302. Qualifications for licensure.
             38          (1) Each applicant for a license under this chapter shall:
             39          (a) submit an application prescribed by the division;
             40          (b) pay a fee as determined by the department under Section 63J-1-504 ;
             41          (c) (i) meet the examination requirements established by rule by the commission with
             42      the concurrence of the director, except for the classifications of apprentice plumber and
             43      apprentice electrician for whom no examination is required; or
             44          (ii) if required in Section 58-55-304 , the individual qualifier must pass the required
             45      examination if the applicant is a business entity;
             46          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
             47          (e) if an applicant for a contractor's license:
             48          (i) produce satisfactory evidence of financial responsibility, except for a construction
             49      trades instructor for whom evidence of financial responsibility is not required;
             50          (ii) produce satisfactory evidence of knowledge and at least two years full-time paid
             51      employment experience in the construction industry and knowledge of the principles of the
             52      conduct of business as a contractor, reasonably necessary for the protection of the public
             53      health, safety, and welfare;
             54          (iii) (A) be a licensed master electrician if an applicant for an electrical contractor's
             55      license or a licensed master residential electrician if an applicant for a residential electrical
             56      contractor's license;


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


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


             119          (c) A journeyman plumber applicant shall produce satisfactory evidence of:
             120          (i) successful completion of the equivalent of at least four years of full-time training
             121      and instruction as a licensed apprentice plumber under supervision of a licensed master
             122      plumber or journeyman plumber and in accordance with a planned program of training
             123      approved by the division;
             124          (ii) at least eight years of full-time experience approved by the division in collaboration
             125      with the Plumbers Licensing Board; or
             126          (iii) satisfactory evidence of meeting the qualifications determined by the board to be
             127      equivalent to Subsection (3)(c)(i) or (c)(ii).
             128          (d) A residential journeyman plumber shall produce satisfactory evidence of:
             129          (i) completion of the equivalent of at least three years of full-time training and
             130      instruction as a licensed apprentice plumber under the supervision of a licensed residential
             131      master plumber, licensed residential journeyman plumber, or licensed journeyman plumber in
             132      accordance with a planned program of training approved by the division;
             133          (ii) completion of at least six years of full-time experience in a maintenance or repair
             134      trade involving substantial plumbing work; or
             135          (iii) meeting the qualifications determined by the board to be equivalent to Subsection
             136      (3)(d)(i) or (d)(ii).
             137          (e) The conduct of licensed apprentice plumbers and their licensed supervisors shall be
             138      in accordance with the following:
             139          (i) while engaging in the trade of plumbing, a licensed apprentice plumber shall be
             140      under the immediate supervision of a licensed master plumber, licensed residential master
             141      plumber, licensed journeyman plumber, or a licensed residential journeyman plumber; and
             142          (ii) a licensed apprentice plumber in the fourth through tenth year of training may work
             143      without supervision for a period not to exceed eight hours in any 24-hour period, but if the
             144      apprentice does not become a licensed journeyman plumber or licensed residential journeyman
             145      plumber by the end of the tenth year of apprenticeship, this nonsupervision provision no longer
             146      applies.
             147          (f) A master electrician applicant shall produce satisfactory evidence that the applicant:
             148          (i) is a graduate electrical engineer of an accredited college or university approved by
             149      the division and has one year of practical electrical experience as a licensed apprentice


             150      electrician;
             151          (ii) is a graduate of an electrical trade school, having received an associate of applied
             152      sciences degree following successful completion of a course of study approved by the division,
             153      and has two years of practical experience as a licensed journeyman electrician;
             154          (iii) has four years of practical experience as a journeyman electrician; or
             155          (iv) meets the qualifications determined by the board to be equivalent to Subsection
             156      (3)(f)(i), (ii), or (iii).
             157          (g) A master residential electrician applicant shall produce satisfactory evidence that
             158      the applicant:
             159          (i) has at least two years of practical experience as a residential journeyman electrician;
             160      or
             161          (ii) meets the qualifications determined by the board to be equivalent to this practical
             162      experience.
             163          (h) A journeyman electrician applicant shall produce satisfactory evidence that the
             164      applicant:
             165          (i) has successfully completed at least four years of full-time training and instruction as
             166      a licensed apprentice electrician under the supervision of a master electrician or journeyman
             167      electrician and in accordance with a planned training program approved by the division;
             168          (ii) has at least eight years of full-time experience approved by the division in
             169      collaboration with the Electricians Licensing Board; or
             170          (iii) meets the qualifications determined by the board to be equivalent to Subsection
             171      (3)(h)(i) or (ii).
             172          (i) A residential journeyman electrician applicant shall produce satisfactory evidence
             173      that the applicant:
             174          (i) has successfully completed two years of training in an electrical training program
             175      approved by the division;
             176          (ii) has four years of practical experience in wiring, installing, and repairing electrical
             177      apparatus and equipment for light, heat, and power under the supervision of a licensed master,
             178      journeyman, residential master, or residential journeyman electrician; or
             179          (iii) meets the qualifications determined by the division and applicable board to be
             180      equivalent to Subsection (3)(i)(i) or (ii).


             181          (j) The conduct of licensed apprentice electricians and their licensed supervisors shall
             182      be in accordance with the following:
             183          (i) A licensed apprentice electrician shall be under the immediate supervision of a
             184      licensed master, journeyman, residential master, or residential journeyman electrician. An
             185      apprentice in the fourth year of training may work without supervision for a period not to
             186      exceed eight hours in any 24-hour period.
             187          (ii) A licensed master, journeyman, residential master, or residential journeyman
             188      electrician may have under immediate supervision on a residential project up to three licensed
             189      apprentice electricians.
             190          (iii) A licensed master or journeyman electrician may have under immediate
             191      supervision on nonresidential projects only one licensed apprentice electrician.
             192          (k) An alarm company applicant shall:
             193          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
             194      the applicant who:
             195          (A) demonstrates 6,000 hours of experience in the alarm company business;
             196          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
             197      company business or in a construction business; and
             198          (C) passes an examination component established by rule by the commission with the
             199      concurrence of the director;
             200          (ii) if a corporation, provide:
             201          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             202      of all corporate officers, directors, and those responsible management personnel employed
             203      within the state or having direct responsibility for managing operations of the applicant within
             204      the state; and
             205          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             206      of all shareholders owning 5% or more of the outstanding shares of the corporation, except this
             207      shall not be required if the stock is publicly listed and traded;
             208          (iii) if a limited liability company, provide:
             209          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             210      of all company officers, and those responsible management personnel employed within the
             211      state or having direct responsibility for managing operations of the applicant within the state;


             212      and
             213          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             214      of all individuals owning 5% or more of the equity of the company;
             215          (iv) if a partnership, provide the names, addresses, dates of birth, Social Security
             216      numbers, and fingerprint cards of all general partners, and those responsible management
             217      personnel employed within the state or having direct responsibility for managing operations of
             218      the applicant within the state;
             219          (v) if a proprietorship, provide the names, addresses, dates of birth, Social Security
             220      numbers, and fingerprint cards of the proprietor, and those responsible management personnel
             221      employed within the state or having direct responsibility for managing operations of the
             222      applicant within the state;
             223          (vi) if a trust, provide the names, addresses, dates of birth, Social Security numbers,
             224      and fingerprint cards of the trustee, and those responsible management personnel employed
             225      within the state or having direct responsibility for managing operations of the applicant within
             226      the state;
             227          (vii) be of good moral character in that officers, directors, shareholders described in
             228      Subsection (3)(k)(ii)(B), partners, proprietors, trustees, and responsible management personnel
             229      have not been convicted of a felony, a misdemeanor involving moral turpitude, or any other
             230      crime that when considered with the duties and responsibilities of an alarm company is
             231      considered by the board to indicate that the best interests of the public are served by granting
             232      the applicant a license;
             233          (viii) document that none of the applicant's officers, directors, shareholders described
             234      in Subsection (3)(k)(ii)(B), partners, proprietors, trustees, and responsible management
             235      personnel have been declared by any court of competent jurisdiction incompetent by reason of
             236      mental defect or disease and not been restored;
             237          (ix) document that none of the applicant's officers, directors, shareholders described in
             238      Subsection (3)(k)(ii)(B), partners, proprietors, and responsible management personnel are
             239      currently suffering from habitual drunkenness or from drug addiction or dependence;
             240          (x) file and maintain with the division evidence of:
             241          (A) comprehensive general liability insurance in form and in amounts to be established
             242      by rule by the commission with the concurrence of the director;


             243          (B) workers' compensation insurance that covers employees of the applicant in
             244      accordance with applicable Utah law; and
             245          (C) registration as is required by applicable law with the:
             246          (I) Division of Corporations and Commercial Code;
             247          (II) Unemployment Insurance Division in the Department of Workforce Services, for
             248      purposes of Title 35A, Chapter 4, Employment Security Act;
             249          (III) State Tax Commission; and
             250          (IV) Internal Revenue Service; and
             251          (xi) meet with the division and board.
             252          (l) Each applicant for licensure as an alarm company agent shall:
             253          (i) submit an application in a form prescribed by the division accompanied by
             254      fingerprint cards;
             255          (ii) pay a fee determined by the department under Section 63J-1-504 ;
             256          (iii) be of good moral character in that the applicant has not been convicted of a felony,
             257      a misdemeanor involving moral turpitude, or any other crime that when considered with the
             258      duties and responsibilities of an alarm company agent is considered by the board to indicate
             259      that the best interests of the public are served by granting the applicant a license;
             260          (iv) not have been declared by any court of competent jurisdiction incompetent by
             261      reason of mental defect or disease and not been restored;
             262          (v) not be currently suffering from habitual drunkenness or from drug addiction or
             263      dependence; and
             264          (vi) meet with the division and board if requested by the division or the board.
             265          (m) (i) Each applicant for licensure as an elevator mechanic shall:
             266          (A) provide documentation of experience and education credits of not less than three
             267      years work experience in the elevator industry, in construction, maintenance, or service and
             268      repair; and
             269          (B) satisfactorily complete a written examination administered by the division
             270      established by rule under Section 58-1-203 ; or
             271          (C) provide certificates of completion of an apprenticeship program for elevator
             272      mechanics, having standards substantially equal to those of this chapter and registered with the
             273      United States Department of Labor Bureau Apprenticeship and Training or a state


             274      apprenticeship council.
             275          (ii) (A) If an elevator contractor licensed under this chapter cannot find a licensed
             276      elevator mechanic to perform the work of erecting, constructing, installing, altering, servicing,
             277      repairing, or maintaining an elevator, the contractor may:
             278          (I) notify the division of the unavailability of licensed personnel; and
             279          (II) request the division issue a temporary elevator mechanic license to an individual
             280      certified by the contractor as having an acceptable combination of documented experience and
             281      education to perform the work described in this Subsection (3)(m)(ii)(A).
             282          (B) (I) The division may issue a temporary elevator mechanic license to an individual
             283      certified under Subsection (3)(m)(ii)(A)(II) upon application by the individual, accompanied by
             284      the appropriate fee as determined by the department under Section 63J-1-504 .
             285          (II) The division shall specify the time period for which the license is valid and may
             286      renew the license for an additional time period upon its determination that a shortage of
             287      licensed elevator mechanics continues to exist.
             288          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             289      division may make rules establishing when Federal Bureau of Investigation records shall be
             290      checked for applicants as an alarm company or alarm company agent.
             291          (5) To determine if an applicant meets the qualifications of Subsections (3)(k)(vii) and
             292      (3)(l)(iii), the division shall provide an appropriate number of copies of fingerprint cards to the
             293      Department of Public Safety with the division's request to:
             294          (a) conduct a search of records of the Department of Public Safety for criminal history
             295      information relating to each applicant for licensure as an alarm company or alarm company
             296      agent and each applicant's officers, directors, shareholders described in Subsection
             297      (3)(k)(ii)(B), partners, proprietors, and responsible management personnel; and
             298          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
             299      requiring a check of records of the Federal Bureau of Investigation for criminal history
             300      information under this section.
             301          (6) The Department of Public Safety shall send to the division:
             302          (a) a written record of criminal history, or certification of no criminal history record, as
             303      contained in the records of the Department of Public Safety in a timely manner after receipt of
             304      a fingerprint card from the division and a request for review of Department of Public Safety


             305      records; and
             306          (b) the results of the Federal Bureau of Investigation review concerning an applicant in
             307      a timely manner after receipt of information from the Federal Bureau of Investigation.
             308          (7) (a) The division shall charge each applicant for licensure as an alarm company or
             309      alarm company agent a fee, in accordance with Section 63J-1-504 , equal to the cost of
             310      performing the records reviews under this section.
             311          (b) The division shall pay the Department of Public Safety the costs of all records
             312      reviews, and the Department of Public Safety shall pay the Federal Bureau of Investigation the
             313      costs of records reviews under this section.
             314          (8) Information obtained by the division from the reviews of criminal history records of
             315      the Department of Public Safety and the Federal Bureau of Investigation shall be used or
             316      disseminated by the division only for the purpose of determining if an applicant for licensure as
             317      an alarm company or alarm company agent is qualified for licensure.
             318          (9) (a) An application for licensure under this chapter shall be denied if:
             319          (i) the applicant has had a previous license, which was issued under this chapter,
             320      suspended or revoked within one year prior to the date of the applicant's application;
             321          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             322          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             323      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar
             324      status, performing similar functions, or directly or indirectly controlling the applicant has
             325      served in any similar capacity with any person or entity which has had a previous license,
             326      which was issued under this chapter, suspended or revoked within one year prior to the date of
             327      the applicant's application; or
             328          (iii) (A) the applicant is an individual or sole proprietorship; and
             329          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             330      Subsection (9)(a)(ii)(B) in any entity which has had a previous license, which was issued under
             331      this chapter, suspended or revoked within one year prior to the date of the applicant's
             332      application.
             333          (b) An application for licensure under this chapter shall be reviewed by the appropriate
             334      licensing board prior to approval if:
             335          (i) the applicant has had a previous license, which was issued under this chapter,


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


             367      under Subsection(1)(e)(iv); and
             368          (iii) be accompanied by a fee set by the division in accordance with Section 63J-1-504
             369      if the ownership status report indicates there is a change described in Subsection (10)(b)(i).
             370          (c) The division may, at any time, audit an ownership status report under this
             371      Subsection (10):
             372          (i) to determine if financial responsibility has been demonstrated or maintained as
             373      required under Section 58-55-306 ; and
             374          (ii) to determine compliance with Subsection 58-55-501 (24) or (25) or Subsection
             375      58-55-502 (8) or (9).
             376          (11) (a) An unincorporated entity that provides labor to an entity licensed under this
             377      chapter by providing an individual who owns an interest in the unincorporated entity to engage
             378      in a construction trade in Utah shall file with the division:
             379          (i) before the individual who owns an interest in the unincorporated entity engages in a
             380      construction trade in Utah, a current list of the one or more individuals who hold an ownership
             381      interest in the unincorporated entity that includes for each individual:
             382          (A) the individual's name, address, birthdate, and Social Security number; and
             383          (B) whether the individual will engage in a construction trade; and
             384          (ii) every 90 days after the day on which the unincorporated entity provides the list
             385      described in Subsection (11)(a)(i), an ownership status report containing the information that
             386      would be required under Subsection (10) if the unincorporated entity were a licensed
             387      contractor.
             388          (b) When filing an ownership list described in Subsection (11)(a)(i) or an ownership
             389      status report described in Subsection (11)(a)(ii) an unincorporated entity shall pay a fee set by
             390      the division in accordance with Section 63J-1-504 .
             391          (12) This chapter may not be interpreted to create or support an express or implied
             392      independent contractor relationship between an unincorporated entity described in Subsection
             393      (10) or (11) and the owners of the unincorporated entity for any purpose, including income tax
             394      withholding.
             395          (13) A Social Security number provided under Subsection (1)(e)(iv) is a private record
             396      under Subsection 63G-2-302 (1)(h).
             397          Section 2. Section 58-55-302.5 is amended to read:


             398           58-55-302.5. Continuing education requirements of contractor licensees --
             399      Continuing education courses.
             400          (1) Each contractor licensee under a license issued under this chapter shall complete
             401      six hours of approved continuing education during each two-year renewal cycle established by
             402      rule under Subsection 58-55-303 (1).
             403          (2) (a) The commission shall, with the concurrence of the division, establish by rule a
             404      program of approved continuing education for contractor licensees.
             405          (b) Before a new course or a course being considered for reapproval may be included
             406      in the program of approved continuing education for contractor licensees, the commission and
             407      the division shall invite and consider written input, received within 30 days of the invitation,
             408      regarding the course from:
             409          (i) the Associated General Contractors of Utah;
             410          (ii) the Home Builders Association of Utah;
             411          (iii) the Utah Subcontractors Council;
             412          (iv) the Utah Plumbing & Heating Contractors Association;
             413          (v) the Independent Electrical Contractors of Utah; and
             414          (vi) the Rocky Mountain Gas Association.
             415          (3) The division may contract with a person to establish and maintain a continuing
             416      education registry to include:
             417          (a) an online application for a continuing education course provider to apply to the
             418      division for approval of the course for inclusion in the program of approved continuing
             419      education;
             420          (b) a list of courses that the division has approved for inclusion in the program of
             421      approved continuing education; and
             422          (c) a list of courses that:
             423          (i) a contractor licensee has completed under the program of approved continuing
             424      education; and
             425          (ii) the licensee may access to monitor the licensee's compliance with the continuing
             426      education requirement established under Subsection (1).
             427          (4) The division may charge a fee, as established by the division under Section
             428      63J-1-504 , to administer the requirements of this section.


             429          Section 3. Section 58-55-305 is amended to read:
             430           58-55-305. Exemptions from licensure.
             431          (1) In addition to the exemptions from licensure in Section 58-1-307 , the following
             432      persons may engage in acts or practices included within the practice of construction trades,
             433      subject to the stated circumstances and limitations, without being licensed under this chapter:
             434          (a) an authorized representative of the United States government or an authorized
             435      employee of the state or any of its political subdivisions when working on construction work of
             436      the state or the subdivision, and when acting within the terms of the person's trust, office, or
             437      employment;
             438          (b) a person engaged in construction or operation incidental to the construction and
             439      repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
             440      districts, and drainage districts or construction and repair relating to farming, dairying,
             441      agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
             442      excavations, well drilling, as defined in Section 73-3-25 , hauling to and from construction
             443      sites, and lumbering;
             444          (c) public utilities operating under the rules of the Public Service Commission on work
             445      incidental to their own business;
             446          (d) sole owners of property engaged in building:
             447          (i) no more than one residential structure per year and no more than three residential
             448      structures per five years on their property for their own noncommercial, nonpublic use; except,
             449      a person other than the property owner or individuals described in Subsection (1)(e), who
             450      engages in building the structure must be licensed under this chapter if the person is otherwise
             451      required to be licensed under this chapter; or
             452          (ii) structures on their property for their own noncommercial, nonpublic use which are
             453      incidental to a residential structure on the property, including sheds, carports, or detached
             454      garages;
             455          (e) (i) a person engaged in construction or renovation of a residential building for
             456      noncommercial, nonpublic use if that person:
             457          (A) works without compensation other than token compensation that is not considered
             458      salary or wages; and
             459          (B) works under the direction of the property owner who engages in building the


             460      structure; and
             461          (ii) as used in this Subsection (1)(e), "token compensation" means compensation paid
             462      by a sole owner of property exempted from licensure under Subsection (1)(d) to a person
             463      exempted from licensure under this Subsection (1)(e), that is:
             464          (A) minimal in value when compared with the fair market value of the services
             465      provided by the person;
             466          (B) not related to the fair market value of the services provided by the person; and
             467          (C) is incidental to the providing of services by the person including paying for or
             468      providing meals or refreshment while services are being provided, or paying reasonable
             469      transportation costs incurred by the person in travel to the site of construction;
             470          (f) a person engaged in the sale or merchandising of personal property that by its design
             471      or manufacture may be attached, installed, or otherwise affixed to real property who has
             472      contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
             473      attach that property;
             474          (g) a contractor submitting a bid on a federal aid highway project, if, before
             475      undertaking construction under that bid, the contractor is licensed under this chapter;
             476          (h) (i) a person engaged in the alteration, repair, remodeling, or addition to or
             477      improvement of a building with a contracted or agreed value of less than $3,000, including
             478      both labor and materials, and including all changes or additions to the contracted or agreed
             479      upon work; and
             480          (ii) notwithstanding Subsection (1)(h)(i) and except as otherwise provided in this
             481      section:
             482          (A) work in the plumbing and electrical trades on a Subsection (1)(h)(i) project within
             483      any six month period of time:
             484          (I) must be performed by a licensed electrical or plumbing contractor, if the project
             485      involves an electrical or plumbing system; and
             486          (II) may be performed by a licensed journeyman electrician or plumber or an individual
             487      referred to in Subsection (1)(h)(ii)(A)(I), if the project involves a component of the system
             488      such as a faucet, toilet, fixture, device, outlet, or electrical switch;
             489          (B) installation, repair, or replacement of a residential or commercial gas appliance or a
             490      combustion system on a Subsection (1)(h)(i) project must be performed by a person who has


             491      received certification under Subsection 58-55-308 (2) except as otherwise provided in
             492      Subsection 58-55-308 (2)(d) or 58-55-308 (3);
             493          (C) installation, repair, or replacement of water-based fire protection systems on a
             494      Subsection (1)(h)(i) project must be performed by a licensed fire suppression systems
             495      contractor or a licensed journeyman plumber;
             496          (D) work as an alarm business or company or as an alarm company agent shall be
             497      performed by a licensed alarm business or company or a licensed alarm company agent, except
             498      as otherwise provided in this chapter;
             499          (E) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i)
             500      project must be performed by a licensed alarm business or company or a licensed alarm
             501      company agent;
             502          (F) installation, repair, or replacement of a heating, ventilation, or air conditioning
             503      system (HVAC) on a Subsection (1)(h)(i) project must be performed by an HVAC contractor
             504      licensed by the division;
             505          (G) installation, repair, or replacement of a radon mitigation system or a soil
             506      depressurization system must be performed by a licensed contractor; and
             507          (H) if the total value of the project is greater than $1,000, the person shall file with the
             508      division a one-time affirmation, subject to periodic reaffirmation as established by division
             509      rule, that the person has:
             510          (I) public liability insurance in coverage amounts and form established by division
             511      rule; and
             512          (II) if applicable, workers compensation insurance which would cover an employee of
             513      the person if that employee worked on the construction project;
             514          (i) a person practicing a specialty contractor classification or construction trade which
             515      the director does not classify by administrative rule as significantly impacting the public's
             516      health, safety, and welfare;
             517          (j) owners and lessees of property and persons regularly employed for wages by owners
             518      or lessees of property or their agents for the purpose of maintaining the property, are exempt
             519      from this chapter when doing work upon the property;
             520          (k) (i) a person engaged in minor plumbing work that is incidental, as defined by the
             521      division by rule, to the replacement or repair of a fixture or an appliance in a residential or


             522      small commercial building, or structure used for agricultural use, as defined in Section
             523      15A-1-202 , provided that no modification is made to:
             524          (A) existing culinary water, soil, waste, or vent piping; or
             525          (B) a gas appliance or combustion system; and
             526          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
             527      an appliance is not included in the exemption provided under Subsection (1)(k)(i);
             528          (l) a person who ordinarily would be subject to the plumber licensure requirements
             529      under this chapter when installing or repairing a water conditioner or other water treatment
             530      apparatus if the conditioner or apparatus:
             531          (i) meets the appropriate state construction codes or local plumbing standards; and
             532          (ii) is installed or repaired under the direction of a person authorized to do the work
             533      under an appropriate specialty contractor license;
             534          (m) a person who ordinarily would be subject to the electrician licensure requirements
             535      under this chapter when employed by:
             536          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
             537      contractors or constructors, or street railway systems; or
             538          (ii) public service corporations, rural electrification associations, or municipal utilities
             539      who generate, distribute, or sell electrical energy for light, heat, or power;
             540          (n) a person involved in minor electrical work incidental to a mechanical or service
             541      installation, including the outdoor installation of an above-ground, prebuilt hot tub;
             542          (o) a student participating in construction trade education and training programs
             543      approved by the commission with the concurrence of the director under the condition that:
             544          (i) all work intended as a part of a finished product on which there would normally be
             545      an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
             546      building inspector; and
             547          (ii) a licensed contractor obtains the necessary building permits;
             548          (p) a delivery person when replacing any of the following existing equipment with a
             549      new gas appliance, provided there is an existing gas shutoff valve at the appliance:
             550          (i) gas range;
             551          (ii) gas dryer;
             552          (iii) outdoor gas barbeque; or


             553          (iv) outdoor gas patio heater;
             554          (q) a person performing maintenance on an elevator as defined in Subsection
             555      58-55-102 (14), if the maintenance is not related to the operating integrity of the elevator; and
             556          (r) an apprentice or helper of an elevator mechanic licensed under this chapter when
             557      working under the general direction of the licensed elevator mechanic.
             558          (2) A compliance agency as defined in Section 15A-1-202 that issues a building permit
             559      to a person requesting a permit as a sole owner of property referred to in Subsection (1)(d) shall
             560      notify the division, in writing or through electronic transmission, of the issuance of the permit.


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