S.B. 156

             1     

CONSTRUCTION TRADES LICENSING ACT AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: Keven J. Stratton

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions of Title 58, Chapter 55, Utah Construction Trades
             10      Licensing Act, relating to an alarm business or company.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides that an alarm business or company does not include a person engaged in
             14      the manufacture or sale of alarm systems unless:
             15              .    that person is also engaged in the installation, maintenance, alteration, repair,
             16      replacement, servicing, or monitoring of alarm systems;
             17              .    the manufacture or sale occurs at a location other than a place of business
             18      established by the person engaged in the manufacture or sale; or
             19              .    the manufacture or sale involves site visits at the place or intended place of
             20      installation of an alarm system; 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 2013, Chapter 36
             29     
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 58-55-102 is amended to read:
             32           58-55-102. Definitions.
             33          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             34          (1) (a) "Alarm business or company" means a person engaged in the sale, installation,
             35      maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system,
             36      except as provided in Subsection (1)(b).
             37          (b) "Alarm business or company" does not include:
             38          (i) a person engaged in the manufacture [and] or sale of alarm systems [when] unless:
             39          (A) that person is [not] also engaged in the installation, maintenance, alteration, repair,
             40      replacement, servicing, or monitoring of alarm systems[, and];
             41          (B) the manufacture or sale occurs [only] at a location other than a place of business
             42      established by the person engaged in the manufacture or sale [and does not involve]; or
             43          (C) the manufacture or sale involves site visits at the place or intended place of
             44      installation of an alarm system; or
             45          (ii) an owner of an alarm system, or an employee of the owner of an alarm system who
             46      is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring
             47      of the alarm system owned by that owner.
             48          (2) "Alarm company agent":
             49          (a) except as provided in Subsection (2)(b), means any individual employed within this
             50      state by an alarm business; and
             51          (b) does not include an individual who:
             52          (i) is not engaged in the sale, installation, maintenance, alteration, repair, replacement,
             53      servicing, or monitoring of an alarm system; and
             54          (ii) does not, during the normal course of the individual's employment with an alarm
             55      business, use or have access to sensitive alarm system information.
             56          (3) "Alarm system" means equipment and devices assembled for the purpose of:
             57          (a) detecting and signaling unauthorized intrusion or entry into or onto certain
             58      premises; or


             59          (b) signaling a robbery or attempted robbery on protected premises.
             60          (4) "Apprentice electrician" means a person licensed under this chapter as an
             61      apprentice electrician who is learning the electrical trade under the immediate supervision of a
             62      master electrician, residential master electrician, a journeyman electrician, or a residential
             63      journeyman electrician.
             64          (5) "Apprentice plumber" means a person licensed under this chapter as an apprentice
             65      plumber who is learning the plumbing trade under the immediate supervision of a master
             66      plumber, residential master plumber, journeyman plumber, or a residential journeyman
             67      plumber.
             68          (6) "Approved continuing education" means instruction provided through courses
             69      under a program established under Subsection 58-55-302.5 (2).
             70          (7) "Board" means the Electrician Licensing Board, Alarm System Security and
             71      Licensing Board, or Plumbers Licensing Board created in Section 58-55-201 .
             72          (8) "Combustion system" means an assembly consisting of:
             73          (a) piping and components with a means for conveying, either continuously or
             74      intermittently, natural gas from the outlet of the natural gas provider's meter to the burner of the
             75      appliance;
             76          (b) the electric control and combustion air supply and venting systems, including air
             77      ducts; and
             78          (c) components intended to achieve control of quantity, flow, and pressure.
             79          (9) "Commission" means the Construction Services Commission created under Section
             80      58-55-103 .
             81          (10) "Construction trade" means any trade or occupation involving:
             82          (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition
             83      to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
             84      or other project, development, or improvement to other than personal property; and
             85          (ii) constructing, remodeling, or repairing a manufactured home or mobile home as
             86      defined in Section 15A-1-302 ; or
             87          (b) installation or repair of a residential or commercial natural gas appliance or
             88      combustion system.
             89          (11) "Construction trades instructor" means a person licensed under this chapter to


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


             121      purposes of this chapter it does not mean a stair chair, a vertical platform lift, or an incline
             122      platform lift.
             123          (15) "Elevator contractor" means a sole proprietor, firm, or corporation licensed under
             124      this chapter that is engaged in the business of erecting, constructing, installing, altering,
             125      servicing, repairing, or maintaining an elevator.
             126          (16) "Elevator mechanic" means an individual who is licensed under this chapter as an
             127      elevator mechanic and who is engaged in erecting, constructing, installing, altering, servicing,
             128      repairing, or maintaining an elevator under the immediate supervision of an elevator contractor.
             129          (17) "Employee" means an individual as defined by the division by rule giving
             130      consideration to the definition adopted by the Internal Revenue Service and the Department of
             131      Workforce Services.
             132          (18) "Engage in a construction trade" means to:
             133          (a) engage in, represent oneself to be engaged in, or advertise oneself as being engaged
             134      in a construction trade; or
             135          (b) use the name "contractor" or "builder" or in any other way lead a reasonable person
             136      to believe one is or will act as a contractor.
             137          (19) (a) "Financial responsibility" means a demonstration of a current and expected
             138      future condition of financial solvency evidencing a reasonable expectation to the division and
             139      the board that an applicant or licensee can successfully engage in business as a contractor
             140      without jeopardy to the public health, safety, and welfare.
             141          (b) Financial responsibility may be determined by an evaluation of the total history
             142      concerning the licensee or applicant including past, present, and expected condition and record
             143      of financial solvency and business conduct.
             144          (20) "Gas appliance" means any device that uses natural gas to produce light, heat,
             145      power, steam, hot water, refrigeration, or air conditioning.
             146          (21) (a) "General building contractor" means a person licensed under this chapter as a
             147      general building contractor qualified by education, training, experience, and knowledge to
             148      perform or superintend construction of structures for the support, shelter, and enclosure of
             149      persons, animals, chattels, or movable property of any kind or any of the components of that
             150      construction except plumbing, electrical work, mechanical work, work related to the operating
             151      integrity of an elevator, and manufactured housing installation, for which the general building


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


             183      electrician having the qualifications, training, experience, and knowledge to properly plan,
             184      layout, and supervise the wiring, installation, and repair of electrical apparatus and equipment
             185      for light, heat, power, and other purposes.
             186          (28) "Master plumber" means a person licensed under this chapter as a master plumber
             187      having the qualifications, training, experience, and knowledge to properly plan and layout
             188      projects and supervise persons in the plumbing trade.
             189          (29) "Person" means a natural person, sole proprietorship, joint venture, corporation,
             190      limited liability company, association, or organization of any type.
             191          (30) (a) "Plumbing trade" means the performance of any mechanical work pertaining to
             192      the installation, alteration, change, repair, removal, maintenance, or use in buildings, or within
             193      three feet beyond the outside walls of buildings of pipes, fixtures, and fittings for:
             194          (i) delivery of the water supply;
             195          (ii) discharge of liquid and water carried waste; or
             196          (iii) the building drainage system within the walls of the building.
             197          (b) "Plumbing trade" includes work pertaining to the water supply, distribution pipes,
             198      fixtures and fixture traps, soil, waste and vent pipes, and the building drain and roof drains
             199      together with their devices, appurtenances, and connections where installed within the outside
             200      walls of the building.
             201          (31) (a) "Ratio of apprentices" means, for the purpose of determining compliance with
             202      the requirements for planned programs of training and electrician apprentice licensing
             203      applications, the shop ratio of apprentice electricians to journeyman or master electricians shall
             204      be one journeyman or master electrician to one apprentice on industrial and commercial work,
             205      and one journeyman or master electrician to three apprentices on residential work.
             206          (b) On-the-job training shall be under circumstances in which the ratio of apprentices
             207      to supervisors is in accordance with a ratio of one-to-one on nonresidential work and up to
             208      three apprentices to one supervisor on residential projects.
             209          (32) "Residential and small commercial contractor" means a person licensed under this
             210      chapter as a residential and small commercial contractor qualified by education, training,
             211      experience, and knowledge to perform or superintend the construction of single-family
             212      residences, multifamily residences up to four units, and commercial construction of not more
             213      than three stories above ground and not more than 20,000 square feet, or any of the components


             214      of that construction except plumbing, electrical work, mechanical work, and manufactured
             215      housing installation, for which the residential and small commercial contractor shall employ
             216      the services of a contractor licensed in the particular specialty, except that a residential and
             217      small commercial contractor engaged in the construction of single-family and multifamily
             218      residences up to four units may perform the mechanical work and hire a licensed plumber or
             219      electrician as an employee.
             220          (33) "Residential building," as it relates to the license classification of residential
             221      journeyman plumber and residential master plumber, means a single or multiple family
             222      dwelling of up to four units.
             223          (34) "Residential journeyman electrician" means a person licensed under this chapter
             224      as a residential journeyman electrician having the qualifications, training, experience, and
             225      knowledge to wire, install, and repair electrical apparatus and equipment for light, heat, power,
             226      and other purposes on buildings using primarily nonmetallic sheath cable.
             227          (35) "Residential journeyman plumber" means a person licensed under this chapter as a
             228      residential journeyman plumber having the qualifications, training, experience, and knowledge
             229      to engage in the plumbing trade as limited to the plumbing of residential buildings.
             230          (36) "Residential master electrician" means a person licensed under this chapter as a
             231      residential master electrician having the qualifications, training, experience, and knowledge to
             232      properly plan, layout, and supervise the wiring, installation, and repair of electrical apparatus
             233      and equipment for light, heat, power, and other purposes on residential projects.
             234          (37) "Residential master plumber" means a person licensed under this chapter as a
             235      residential master plumber having the qualifications, training, experience, and knowledge to
             236      properly plan and layout projects and supervise persons in the plumbing trade as limited to the
             237      plumbing of residential buildings.
             238          (38) "Residential project," as it relates to an electrician or electrical contractor, means
             239      buildings primarily wired with nonmetallic sheathed cable, in accordance with standard rules
             240      and regulations governing this work, including the National Electrical Code, and in which the
             241      voltage does not exceed 250 volts line to line and 125 volts to ground.
             242          (39) "Sensitive alarm system information" means:
             243          (a) a pass code or other code used in the operation of an alarm system;
             244          (b) information on the location of alarm system components at the premises of a


             245      customer of the alarm business providing the alarm system;
             246          (c) information that would allow the circumvention, bypass, deactivation, or other
             247      compromise of an alarm system of a customer of the alarm business providing the alarm
             248      system; and
             249          (d) any other similar information that the division by rule determines to be information
             250      that an individual employed by an alarm business should use or have access to only if the
             251      individual is licensed as provided in this chapter.
             252          (40) (a) "Specialty contractor" means a person licensed under this chapter under a
             253      specialty contractor classification established by rule, who is qualified by education, training,
             254      experience, and knowledge to perform those construction trades and crafts requiring
             255      specialized skill, the regulation of which are determined by the division to be in the best
             256      interest of the public health, safety, and welfare.
             257          (b) A specialty contractor may perform work in crafts or trades other than those in
             258      which the specialty contractor is licensed if they are incidental to the performance of the
             259      specialty contractor's licensed craft or trade.
             260          (41) "Unincorporated entity" means an entity that is not:
             261          (a) an individual;
             262          (b) a corporation; or
             263          (c) publicly traded.
             264          (42) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-55-501 .
             265          (43) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-55-502 and as
             266      may be further defined by rule.
             267          (44) "Wages" means amounts due to an employee for labor or services whether the
             268      amount is fixed or ascertained on a time, task, piece, commission, or other basis for calculating
             269      the amount.




Legislative Review Note
    as of 1-24-14 4:01 PM


Office of Legislative Research and General Counsel


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