Representative Paul Ray proposes the following substitute bill:





Chief Sponsor: Paul Ray

Senate Sponsor: D. Gregg Buxton


9     General Description:
10          This bill amends a provision related to unlawful conduct for a person licensed in a
11     construction trade.
12     Highlighted Provisions:
13          This bill:
14          ▸      prohibits the division from treating unlawful conduct by a licensee as a subsequent
15     violation of a previous unlawful conduct violation if a certain amount of time has
16     passed since the previous violation.
17          ▸     allows the division to treat multiple of the same type of unlawful conduct violation
18     as separate violations.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          58-55-503, as last amended by Laws of Utah 2014, Chapter 188


27     Be it enacted by the Legislature of the state of Utah:
28          Section 1. Section 58-55-503 is amended to read:
29          58-55-503. Penalty for unlawful conduct -- Citations.
30          (1) (a) (i) A person who violates Subsection 58-55-308(2), Subsection 58-55-501(1),
31     (2), (3), (4), (5), (6), (7), (9), (10), (12), (14), (15), (22), (23), (24), (25), (26), (27), (28), or
32     (29), or Subsection 58-55-504(2), or who fails to comply with a citation issued under this
33     section after it is final, is guilty of a class A misdemeanor.
34          (ii) As used in this section in reference to Subsection 58-55-504(2), "person" means an
35     individual and does not include a sole proprietorship, joint venture, corporation, limited
36     liability company, association, or organization of any type.
37          (b) A person who violates the provisions of Subsection 58-55-501(8) may not be
38     awarded and may not accept a contract for the performance of the work.
39          (2) A person who violates the provisions of Subsection 58-55-501(13) is guilty of an
40     infraction unless the violator did so with the intent to deprive the person to whom money is to
41     be paid of the money received, in which case the violator is guilty of theft, as classified in
42     Section 76-6-412.
43          (3) Grounds for immediate suspension of a licensee's license by the division and the
44     commission include:
45          (a) the issuance of a citation for violation of Subsection 58-55-308(2), Section
46     58-55-501, or Subsection 58-55-504(2); and
47          (b) the failure by a licensee to make application to, report to, or notify the division with
48     respect to any matter for which application, notification, or reporting is required under this
49     chapter or rules adopted under this chapter, including:
50          (i) applying to the division for a new license to engage in a new specialty classification
51     or to do business under a new form of organization or business structure;
52          (ii) filing a current financial statement with the division; and
53          (iii) notifying the division concerning loss of insurance coverage or change in qualifier.
54          (4) (a) If upon inspection or investigation, the division concludes that a person has
55     violated the provisions of Subsection 58-55-308(2), Subsection 58-55-501(1), (2), (3), (9),
56     (10), (12), (14), (19), (21), (22), (23), (24), (25), (26), (27), (28), or (29), Subsection

57     58-55-504(2), or any rule or order issued with respect to these subsections, and that disciplinary
58     action is appropriate, the director or the director's designee from within the division shall
59     promptly issue a citation to the person according to this chapter and any pertinent rules, attempt
60     to negotiate a stipulated settlement, or notify the person to appear before an adjudicative
61     proceeding conducted under Title 63G, Chapter 4, Administrative Procedures Act.
62          (i) A person who is in violation of the provisions of Subsection 58-55-308(2),
63     Subsection 58-55-501(1), (2), (3), (9), (10), (12), (14), (19), (21), (22), (23), (24), (25), (26),
64     (27), (28), or (29), or Subsection 58-55-504(2), as evidenced by an uncontested citation, a
65     stipulated settlement, or by a finding of violation in an adjudicative proceeding, may be
66     assessed a fine pursuant to this Subsection (4) and may, in addition to or in lieu of, be ordered
67     to cease and desist from violating Subsection 58-55-308(2), Subsection 58-55-501(1), (2), (3),
68     (9), (10), (12), (14), (19), (21), (24), (25), (26), (27), (28), or (29), or Subsection 58-55-504(2).
69          (ii) Except for a cease and desist order, the licensure sanctions cited in Section
70     58-55-401 may not be assessed through a citation.
71          (b) (i) A citation shall be in writing and describe with particularity the nature of the
72     violation, including a reference to the provision of the chapter, rule, or order alleged to have
73     been violated.
74          (ii) A citation shall clearly state that the recipient must notify the division in writing
75     within 20 calendar days of service of the citation if the recipient wishes to contest the citation
76     at a hearing conducted under Title 63G, Chapter 4, Administrative Procedures Act.
77          (iii) A citation shall clearly explain the consequences of failure to timely contest the
78     citation or to make payment of any fines assessed by the citation within the time specified in
79     the citation.
80          (c) A citation issued under this section, or a copy of a citation, may be served upon a
81     person upon whom a summons may be served:
82          (i) in accordance with the Utah Rules of Civil Procedure;
83          (ii) personally or upon the person's agent by a division investigator or by a person
84     specially designated by the director; or
85          (iii) by mail.
86          (d) (i) If within 20 calendar days after the day on which a citation is served, the person
87     to whom the citation was issued fails to request a hearing to contest the citation, the citation

88     becomes the final order of the division and is not subject to further agency review.
89          (ii) The period to contest a citation may be extended by the division for cause.
90          (e) The division may refuse to issue or renew, suspend, revoke, or place on probation
91     the license of a licensee who fails to comply with a citation after it becomes final.
92          (f) The failure of an applicant for licensure to comply with a citation after it becomes
93     final is a ground for denial of license.
94          (g) A citation may not be issued under this section after the expiration of six months
95     following the occurrence of a violation.
96          (h) [The] Except as provided in Subsection (5), the director or the director's designee
97     shall assess a fine in accordance with the following:
98          (i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
99          (ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000;
100     and
101          (iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to
102     $2,000 for each day of continued offense.
103          (i) (i) For purposes of issuing a final order under this section and assessing a fine under
104     Subsection (4)(h), an offense constitutes a second or subsequent offense if:
105          (A) the division previously issued a final order determining that a person committed a
106     first or second offense in violation of Subsection 58-55-308(2), Subsection 58-55-501(1), (2),
107     (3), (9), (10), (12), (14), (19), (24), (25), (26), (27), (28), or (29), or Subsection 58-55-504(2);
108     or
109          (B) (I) the division initiated an action for a first or second offense;
110          (II) a final order has not been issued by the division in the action initiated under
111     Subsection (4)(i)(i)(B)(I);
112          (III) the division determines during an investigation that occurred after the initiation of
113     the action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent
114     violation of the provisions of Subsection 58-55-308(2), Subsection 58-55-501(1), (2), (3), (9),
115     (10), (12), (14), (19), (24), (25), (26), (27), (28), or (29), or Subsection 58-55-504(2); and
116          (IV) after determining that the person committed a second or subsequent offense under
117     Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under
118     Subsection (4)(i)(i)(B)(I).

119          (ii) In issuing a final order for a second or subsequent offense under Subsection
120     (4)(i)(i), the division shall comply with the requirements of this section.
121          (j) In addition to any other licensure sanction or fine imposed under this section, the
122     division shall revoke the license of a licensee that violates Subsection 58-55-501(24) or (25)
123     two or more times within a 12-month period, unless, with respect to a violation of Subsection
124     58-55-501(24), the licensee can demonstrate that the licensee successfully verified the federal
125     legal working status of the individual who was the subject of the violation using a status
126     verification system, as defined in Section 13-47-102.
127          (k) For purposes of this Subsection (4), a violation of Subsection 58-55-501(24) or (25)
128     for each individual is considered a separate violation.
129           (5) If a person violates Section 58-55-501, the division may not treat the violation as a
130     subsequent violation of a previous violation if the violation occurs five years or more after the
131     day on which the person committed the previous violation.
132          (6) If, after an investigation, the division determines that a person has committed
133     multiple of the same type of violation of Section 58-55-501, the division may treat each
134     violation as a separate violation of Section 58-55-501 and apply a penalty under this section to
135     each violation.
136          [(5)] (7) (a) A penalty imposed by the director under Subsection (4)(h) shall be
137     deposited into the Commerce Service Account created by Section 13-1-2.
138          (b) A penalty that is not paid may be collected by the director by either referring the
139     matter to a collection agency or bringing an action in the district court of the county in which
140     the person against whom the penalty is imposed resides or in the county where the office of the
141     director is located.
142          (c) A county attorney or the attorney general of the state is to provide legal assistance
143     and advice to the director in any action to collect the penalty.
144          (d) In an action brought to enforce the provisions of this section, the court shall award
145     reasonable attorney fees and costs to the prevailing party.