This document includes House Committee Amendments incorporated into the bill on Thu, Feb 15, 2024 at 11:24 AM by housengrossing.
1     
CONSTRUCTION TRADE AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Carl R. Albrecht

5     
Senate Sponsor: Don L. Ipson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the exemptions from licensure under the Utah Construction Trades
10     Licensing Act.
11     Highlighted Provisions:
12          This bill:
13          ▸     modifies the threshhold dollar amount allowing a person to engage in construction
14     trades without being licensed.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          58-55-305, as last amended by Laws of Utah 2020, Chapter 339
22     

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 58-55-305 is amended to read:
25          58-55-305. Exemptions from licensure.
26          (1) In addition to the exemptions from licensure in Section 58-1-307, the following
27     persons may engage in acts or practices included within the practice of construction trades,

28     subject to the stated circumstances and limitations, without being licensed under this chapter:
29          (a) an authorized representative of the United States government or an authorized
30     employee of the state or any of its political subdivisions when working on construction work of
31     the state or the subdivision, and when acting within the terms of the person's trust, office, or
32     employment;
33          (b) a person engaged in construction or operation incidental to the construction and
34     repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation
35     districts, and drainage districts or construction and repair relating to farming, dairying,
36     agriculture, livestock or poultry raising, metal and coal mining, quarries, sand and gravel
37     excavations, well drilling, as defined in Section 73-3-25, hauling to and from construction
38     sites, and lumbering;
39          (c) public utilities operating under the rules of the Public Service Commission on work
40     incidental to their own business;
41          (d) a sole owner of property engaged in building:
42          (i) no more than one residential structure per year on the sole owner's property and no
43     more than three residential structures per five years on the sole owner's property for the sole
44     owner's noncommercial, nonpublic use, except that a person other than the property owner or a
45     person described in Subsection (1)(e), who engages in building a residential structure must be
46     licensed under this chapter if the person is otherwise required to be licensed under this chapter;
47     or
48          (ii) structures on the sole owner's property for the sole owner's noncommercial,
49     nonpublic use that are incidental to a residential structure on the property, including a shed,
50     carport, or detached garage;
51          (e) (i) a person engaged in construction or renovation of a residential building for
52     noncommercial, nonpublic use if that person:
53          (A) works without compensation other than token compensation that is not considered
54     salary or wages; and
55          (B) works under the direction of the property owner who engages in building the
56     structure; and
57          (ii) as used in this Subsection (1)(e), "token compensation" means compensation paid
58     by a sole owner of property exempted from licensure under Subsection (1)(d) to a person

59     exempted from licensure under this Subsection (1)(e), that is:
60          (A) minimal in value when compared with the fair market value of the services
61     provided by the person;
62          (B) not related to the fair market value of the services provided by the person; and
63          (C) is incidental to the providing of services by the person including paying for or
64     providing meals or refreshment while services are being provided, or paying reasonable
65     transportation costs incurred by the person in travel to the site of construction;
66          (f) a person engaged in the sale or merchandising of personal property that by its design
67     or manufacture may be attached, installed, or otherwise affixed to real property who has
68     contracted with a person, firm, or corporation licensed under this chapter to install, affix, or
69     attach that property;
70          (g) a contractor submitting a bid on a federal aid highway project, if, before
71     undertaking construction under that bid, the contractor is licensed under this chapter;
72          (h) (i) subject to Subsection 58-1-401(2) and Sections 58-55-501 and 58-55-502, a
73     person engaged in the alteration, repair, remodeling, or addition to or improvement of a
74     building with a contracted or agreed value of less than [$3,000,] Ĥ→ [
$35,000] $9,000 ←Ĥ ,
74a     including both labor
75     and materials, and including all changes or additions to the contracted or agreed upon work;
76     and
77          (ii) notwithstanding Subsection (1)(h)(i) and except as otherwise provided in this
78     section:
79          (A) work in the plumbing and electrical trades on a Subsection (1)(h)(i) project within
80     any six month period of time:
81          (I) Ĥ→ [
must] shall ←Ĥ be performed by a licensed electrical or plumbing contractor, if
81a     the project
82     involves an electrical or plumbing system; and
83          (II) may be performed by a licensed journeyman electrician or plumber or an individual
84     referred to in Subsection (1)(h)(ii)(A)(I), if the project involves a component of the system
85     such as a faucet, toilet, fixture, device, outlet, or electrical switch;
86          (B) installation, repair, or replacement of a residential or commercial gas appliance or a
87     combustion system on a Subsection (1)(h)(i) project Ĥ→ [
must] shall ←Ĥ be performed by a
87a     person who has
88     received certification under Subsection 58-55-308(2) except as otherwise provided in
89     Subsection 58-55-308(2)(d) or 58-55-308(3);
90          (C) installation, repair, or replacement of water-based fire protection systems on a
91     Subsection (1)(h)(i) project must be performed by a licensed fire suppression systems
92     contractor or a licensed journeyman plumber;
93          (D) work as an alarm business or company or as an alarm company agent shall be
94     performed by a licensed alarm business or company or a licensed alarm company agent, except
95     as otherwise provided in this chapter;
96          (E) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i)
97     project must be performed by a licensed alarm business or company or a licensed alarm
98     company agent;
99          (F) installation, repair, or replacement of a heating, ventilation, or air conditioning
100     system (HVAC) on a Subsection (1)(h)(i) project must be performed by an HVAC contractor
101     licensed by the division;
102          (G) installation, repair, or replacement of a radon mitigation system or a soil
103     depressurization system must be performed by a licensed contractor; and
104          (H) if the total value of the project is greater than [$1,000,] $3,000, the person shall file
105     with the division a one-time affirmation, subject to periodic reaffirmation as established by
106     division rule, that the person has:
107          (I) public liability insurance in coverage amounts and form established by division
108     rule; and
109          (II) if applicable, workers compensation insurance which would cover an employee of
110     the person if that employee worked on the construction project;
111          (i) a person practicing a specialty contractor classification or construction trade which
112     the director does not classify by administrative rule as significantly impacting the public's
113     health, safety, and welfare;
114          (j) owners and lessees of property and persons regularly employed for wages by owners
115     or lessees of property or their agents for the purpose of maintaining the property, are exempt
116     from this chapter when doing work upon the property;
117          (k) (i) a person engaged in minor plumbing work that is incidental, as defined by the
118     division by rule, to the Ĥ→ [
replacement or] ←Ĥ repair of a fixture or an appliance in a residential
118a     or
119     small commercial building, or structure used for agricultural use, as defined in Section
120     15A-1-202, provided that no modification is made to:

121          (A) existing culinary water, soil, waste, or vent piping; or
122          (B) a gas appliance or combustion system; and
123          (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture or
124     an appliance is not included in the exemption provided under Subsection (1)(k)(i);
125          (l) a person who ordinarily would be subject to the plumber licensure requirements
126     under this chapter when installing or repairing a water conditioner or other water treatment
127     apparatus if the conditioner or apparatus:
128          (i) meets the appropriate state construction codes or local plumbing standards; and
129          (ii) is installed or repaired under the direction of a person authorized to do the work
130     under an appropriate specialty contractor license;
131          (m) a person who ordinarily would be subject to the electrician licensure requirements
132     under this chapter when employed by:
133          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
134     contractors or constructors, or street railway systems; or
135          (ii) public service corporations, rural electrification associations, or municipal utilities
136     who generate, distribute, or sell electrical energy for light, heat, or power;
137          (n) a person involved in minor electrical work incidental to a mechanical or service
138     installation, including the outdoor installation of an above-ground, prebuilt hot tub;
139          (o) a person who ordinarily would be subject to the electrician licensure requirements
140     under this chapter but who during calendar years 2009, 2010, or 2011 was issued a specialty
141     contractor license for the electrical work associated with the installation, repair, or maintenance
142     of solar energy panels, may continue the limited electrical work for solar energy panels under a
143     specialty contractor license;
144          (p) a student participating in construction trade education and training programs
145     approved by the commission with the concurrence of the director under the condition that:
146          (i) all work intended as a part of a finished product on which there would normally be
147     an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed
148     building inspector; and
149          (ii) a licensed contractor obtains the necessary building permits;
150          (q) a delivery person when replacing any of the following existing equipment with a
151     new gas appliance, provided there is an existing gas shutoff valve at the appliance:

152          (i) gas range;
153          (ii) gas dryer;
154          (iii) outdoor gas barbeque; or
155          (iv) outdoor gas patio heater;
156          (r) a person performing maintenance on an elevator as defined in Section 58-55-102, if
157     the maintenance is not related to the operating integrity of the elevator; and
158          (s) an apprentice or helper of an elevator mechanic licensed under this chapter when
159     working under the general direction of the licensed elevator mechanic.
160          (2) A compliance agency as defined in Section 15A-1-202 that issues a building permit
161     to a person requesting a permit as a sole owner of property referred to in Subsection (1)(d) shall
162     notify the division, in writing or through electronic transmission, of the issuance of the permit.
163          Section 2. Effective date.
164          This bill takes effect on May 1, 2024.