HB 40 — Utah Construction Trades Licensing Act Amendments

or - 7 - HB0040 compared with HB0040S01 (iii) the public agency;

(8)(8)(a) (a) Notwithstanding Subsection (3):

or (ii) if a project or a portion of the project has been substantially completed, the owner or- public7 agency- mayH.B. retain until completion up to twice the fair market value of the work of the original contractor or of any subcontractor that has not been completed:

40 Enrolled Copy or public agency may retain until completion up to twice the fair market value of the work of the original contractor or of any subcontractor that has not been completed:

(9)(9)(a) (a) Except as provided in Subsection (9)(b), an original contractor or subcontractor who receives retention proceeds shall pay each of its subcontractors from whom retention has been withheld each subcontractor's share of the retention received within 10 days from the day that all or any portion of the retention proceeds is received:

or - 8 - HB0040 compared with HB0040S01 (ii) by the subcontractor from:

(10)(10)(a) (a) In any action for the collection of the retained proceeds withheld and retained in violation of this section, the successful party is entitled to:

(b)(b)(i) (i) Any owner, public agency, original contractor, or subcontractor who knowingly and wrongfully withholds a retention shall be subject to a charge of 2% per month on the improperly withheld amount, in addition to any interest otherwise due.

38-11-207.- 8 - Enrolled Copy H.B.

40 38-11-207 .

(3)(3)(a) - 9 - HB0040 compared with HB0040S01 (a) A finding of fact in an administrative action that a payment of any amount has been made from the fund in settlement of a claim arising from the act, representation, transaction, or conduct of a person licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act, in violation of Section [58-55-603] 58-55-209 shall result in the immediate suspension of that person's license without further compliance with Title 63G, Chapter 4, Administrative Procedures Act.

57-8-8.2.57-8-8.2 .

(b) "General electrical contractor" means the same as that term is defined in Section [58-55-102][ 58-55-102] 58-55-202.

(c) "Residential electrical contractor" means the same as that term is defined in Section [58-55-102][ 58-55-102] 58-55-202.

(2) Notwithstanding any provision in an association's governing documents to the contrary, an- association9 may- notH.B. prohibit a unit owner from installing or using a charging system in:

40 Enrolled Copy an association may not prohibit a unit owner from installing or using a charging system in:

or - 10 - HB0040 compared with HB0040S01 (ii) if a charging system is installed in a common area, provide reimbursement to the association for the actual cost of the increase in the association's insurance premium attributable to the installation or use of the charging system;

and (b)- the10 unit- owner'sEnrolled relatedCopy responsibilitiesH.B. under this section.

40 (b) the unit owner's related responsibilities under this section.

-57-8a-801 11. - HB0040 compared with HB0040S01 57-8a-801.

(2) "General electrical contractor" means the same as that term is defined in Section [58-55-102][ 58-55-102] 58-55-202.

(3) "Residential electrical contractor" means the same as that term is defined in Section [58-55-102][ 58-55-102] 58-55-202.

58-1-301.5.58-1-301.5 .

(j)- Section11 58-44a-302;- H.B.

40 Enrolled Copy (j) Section 58-44a-302;

- 12 - HB0040 compared with HB0040S01 (q) Section 58-60-506;

(5)- To12 fulfill- anEnrolled applicableCopy criminalH.B. background check requirement, an applicant shall:

40 (5) To fulfill an applicable criminal background check requirement, an applicant shall:

(6)(6)(a) - 13 - HB0040 compared with HB0040S01 (a) Upon receiving fingerprints from an applicant in accordance with Subsection (5), the division shall:

(8)(8)(a)(i) (a) (i) Notwithstanding Title 63G, Chapter 4, Administrative Procedures Act, if the criminal background check required under this section demonstrates, after the applicant is licensed or registered, that the applicant failed to accurately disclose a criminal history, the division may provide notice to the applicant that the license or registration is immediately and automatically revoked.

(ii) [If ] Notwithstanding Title 63G, Chapter 4, Administrative Procedures Act, if a massage establishment owner has a criminal conviction or pending criminal charges for any crime under Title 76, Chapter 5, Part 4, Sexual Offenses, or any crime listed by rule [made by ]the division makes in collaboration with the board in accordance with Title 63G, Chapter 3, Utah - 1413 - HB0040H.B. compared with HB0040S01 Administrative Rulemaking Act, the division shall deny an application for registration of a massage establishment.

(b)40 (i)Enrolled AnCopy individualcharges whosefor licenseany hascrime beenunder revokedTitle 76, Chapter 5, Part 4, Sexual Offenses, or any crime listed by rule [made by ]the division makes in accordancecollaboration with Subsectionthe (8)(a)board isin entitledaccordance towith aTitle hearing63G, toChapter challenge3, Utah Administrative Rulemaking Act, the revocation.division shall deny an application for registration of a massage establishment.

(b)(i) An individual whose license has been revoked in accordance with Subsection (8)(a) is entitled to a hearing to challenge the revocation.

58-55-101.Part 1.

General Provisions 58-55-101 .

1.As used in this chapter:

General Provisions As used in this chapter:

or (c) installing or repairing a residential or commercial gas appliance or combustion system.- 14 - Enrolled Copy H.B.

(6)40 (a)system. "Construction trades instructor" means a person that teaches one or more construction trades in a classroom or project setting.

-(6)(a) 15 - HB0040 compared with HB0040S01 (b) "Construction trades instructor" doesmeans nota includeperson anthat individualteaches whoone holdsor anmore economicconstruction interesttrades in a projectclassroom that the individual directs that is intended for sale to or useproject bysetting. the public.

(7)(b) (a)"Construction "Contractor"trades meansinstructor" adoes personnot thatinclude engagesan individual who holds an economic interest in a constructionproject tradethat the individual directs that is intended for compensation.sale to or use by the public.

(7)(a) "Contractor" means a person that engages in a construction trade for compensation.

(8)(8)(a) (a) "Control position" means a person that exercises direct or indirect control over an entity.

or (b) to lead, or attempt to lead, a reasonable individual to believe a person will perform a construction- trade.15 - H.B.

40 Enrolled Copy construction trade.

- 16 - HB0040 compared with HB0040S01 (11) "Immediate supervision" means the reasonable direction, oversight, inspection, and evaluation of the work of an individual:

(13) "Qualifier" means {the } an individual whowho: {has the license that allows the contractor to engage in the construction trade for which the contractor applies for a license.} :

58-55-103.58-55-103 .

(1)(1)(a) (a) There is created within the division the Construction Services Commission.

- 17 - HB0040 compared with HB0040S01 (i) [with the concurrence of the director, make reasonable rules under Title 63G, Chapter- 3,16 Utah- AdministrativeEnrolled RulemakingCopy Act,H.B. to administer and enforce this chapter which are consistent with this chapter including] with the director's concurrence, make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer and enforce this chapter, including rules that provide the standards for a licensee's:

40 Chapter 3, Utah Administrative Rulemaking Act, to administer and enforce this chapter which are consistent with this chapter including] with the director's concurrence, make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer and enforce this chapter, including rules that provide the standards for a licensee's:

(2)(2)[(a) [(a) The terms of office of the commission members who are serving on the Contractors Licensing Board shall continue as they serve on the commission.] [(b) The commission shall be comprised of the following members appointed by the executive director with the approval of the governor from the following groups:] - 18 - HB0040 compared with HB0040S01 [(i) one member shall be a licensed general engineering contractor;] [(ii)- one17 member- shallH.B. be a licensed general building contractor;] [(iii) two members shall be licensed residential and small commercial contractors;] [(iv) one member shall be a licensed plumber and a member of the Electricians and Plumbers Licensing Board;] [(v) one member shall be a licensed electrician and a member of the Electricians and Plumbers Licensing Board;] [(vi) one member shall be the chair person of the Alarm System Security and Licensing Board;

40 Enrolled Copy [(ii) one member shall be a licensed general building contractor;] [(iii) two members shall be licensed residential and small commercial contractors;] [(iv) one member shall be a licensed plumber and a member of the Electricians and Plumbers Licensing Board;] [(v) one member shall be a licensed electrician and a member of the Electricians and Plumbers Licensing Board;] [(vi) one member shall be the chair person of the Alarm System Security and Licensing Board;

[(3)[(3)(a) (a) Except as required by Subsection (3)(b), as terms of current commission members expire, the executive director with the approval of the governor shall appoint each new member or reappointed member to a four-year term ending June 30.] [(b) Notwithstanding the requirements of Subsection (3)(a), the executive director with the approval of the governor shall, at the time of appointment or reappointment, adjust the length of terms to stagger the terms of commission members so that approximately 1/2 of the commission members are appointed every two years.] [(c)] (3) A commission member may not serve more than two consecutive terms.

- 19 - HB0040 compared with HB0040S01 (4) The executive director, with the governor's approval, shall:

and (b)- adjust18 terms- atEnrolled appointmentCopy orH.B. reappointment to stagger terms so that approximately half of the members' terms expire every two years.

40 (b) adjust terms at appointment or reappointment to stagger terms so that approximately half of the members' terms expire every two years.

[(7)] (8)(8)(a) (a) The commission shall meet at least monthly unless the director determines otherwise.

[(8)] (9)(9)(a) (a) Five members [constitute] are a quorum for the transaction of business.

[(9)] (10) The commission shall comply with the procedures and requirements of Title 13, Chapter 1, Department of Commerce, and Title 63G, Chapter 4, Administrative Procedures Act, in all [of its]its adjudicative]adjudicative proceedings.

[(10)] (11)(11)[(a) - 20 - HB0040 compared with HB0040S01 [(a) For purposes of this Subsection (10), "concurrence" means the entities given a concurring role must jointly agree for the action to be taken.] [(b) If a provision of this chapter requires concurrence between the director or division and the commission and no concurrence can be reached, the director or division has final authority.] [(c)] (a) When this chapter requires concurrence between the director or division and the commission:

(i) the director or division shall report to and update the commission on a regular basis- related19 to- mattersH.B. requiring concurrence;

40 Enrolled Copy basis related to matters requiring concurrence;

58-55-104.58-55-104 .

- 21 - HB0040 compared with HB0040S01 (i) who each are a qualifier for separate licensed electrical contractors as defined in Section 58-55-202;

(c)- assisting20 the- commissionEnrolled inCopy fulfillingH.B. the commission's duties;

40 (c) assisting the commission in fulfilling the commission's duties;

58-55-105.58-55-105 .

(1)(1)(a) (a) A person engaged in a construction trade or acting as a contractor shall obtain a license under this chapter before performing work unless exempt from licensure under Section 58-1-307 or 58-55-110.

(2)(2)(a) (a) To obtain a license, an applicant shall file an application that includes payment of a fee the division determines in accordance with Section 63J-1-504.

- 22 - HB0040 compared with HB0040S01 (3) With the concurrence of the director and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may makes rules to further define the scope of work for:

58-55-106.58-55-106 .

(1)(1)(a) (a) The division shall collect a $1 surcharge from each applicant for an initial license, a- renewal21 of- aH.B. license, or a reinstatement of a license.

40 Enrolled Copy a renewal of a license, or a reinstatement of a license.

(2)(2)(a) (a) The division shall deposit the surcharge into the General Fund as a dedicated credit.

(b) The division shall use the dedicated credits to provide a licensee with access to an internet-basedi nternet-based library of national, state, and local building codes and standards.

Section 1258-55-107 is enacted to read:

58-55-107.58-55-107 .

(4)(4)(a) (a) The division shall require a contractor to have a qualifier.

and - 23 - HB0040 compared with HB0040S01 (ii) an owner, officer, or manager of the contractor who exercises material authority in the conduct of the contracting business by:

(5)(5)(a) (a) The division may take action against:

(6)(6)(a) (a) Except as provided in Subsection (6)(b), a contractor that is not a plumbing or electrical- contractor22 may- complyEnrolled withCopy theH.B. qualifier requirements when renewing a license in accordance with Section 58-55-108 by recording an active employee name and license number from the applicable construction trade on the renewal application if the contractor has not violated the requirements of this chapter for a period of 10 consecutive years.

40 electrical contractor may comply with the qualifier requirements when renewing a license in accordance with Section 58-55-108 by recording an active employee name and license number from the applicable construction trade on the renewal application if the contractor has not violated the requirements of this chapter for a period of 10 consecutive years.

(7)(7)(a) (a) Except as provided in Subsection (7)(b), a plumbing or electrical contractor may comply with the qualifier requirements when renewing a license in accordance with Section 58-55-108 by recording an active employee name and license number from the applicable construction trade on the renewal application if the plumbing or electrical contractor has not violated the requirements of this chapter for a period of five consecutive years.

(b) If the plumbing or electrical business entity transfers more than 50% of the plumbing or electrical business entity's ownership at any time during the five-year period before the renewal, the plumbing - 24 - HB0040 compared with HB0040S01 or electrical business entity may not meet the qualifier requirement in accordance with Subsection (7)(a).

(8)(8)(a) (a) Notwithstanding Subsections (6) and (7), if a qualifier for a contractor ceases association with the contractor, the contractor shall notify the division in writing within 10 days after the day on which the association ceases.

Section 1358-55-108 is enacted to read:

58-55-108.58-55-108 .

(1)(1)(a) (a) The division shall issue a license for a term of two years as the division establishes by rule the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(b) The division may extend or shorten a license term by up to one year to stagger renewals as the division determines by rule in accordance with Title 63G, Chapter 3, Utah- Administrative23 Rulemaking- Act.H.B.

(c)40 (i)Enrolled NotwithstandingCopy SubsectionsUtah (1)(a) and (b) and Title 63G, Chapter 4, Administrative ProceduresRulemaking Act,Act. the division may suspend a license 60 days after the day on which the licensee:

(c)(i) Notwithstanding Subsections (1)(a) and (b) and Title 63G, Chapter 4, Administrative Procedures Act, the division may suspend a license 60 days after the day on which the licensee:

(2)(2)(a) - 25 - HB0040 compared with HB0040S01 (a) The division shall renew or reinstate an individual license after the applicant:

(A)- has24 passed- theEnrolled requiredCopy examination;H.B.

40 (A) has passed the required examination;

- 26 - HB0040 compared with HB0040S01 (c) if the license the division suspends or revokes is a contractor's license, demonstrate financial responsibility in accordance with Section 58-55-205 using titled assets;

Section 1458-55-109 is enacted to read:

58-55-109.58-55-109 .

(b)(b)(i) (i) the applicant is a partnership, corporation, or limited liability company;

(c)(c)(i) (i) the applicant is a sole proprietorship;

or (d)(d)(i) (i) the applicant lists an individual who was an owner, director, or officer of an unincorporated entity at the time the division revoked the unincorporated entity's license;

(b)- (i)25 the- applicantH.B. is a partnership, corporation, or limited liability company;

40 Enrolled Copy (b)(i) the applicant is a partnership, corporation, or limited liability company;

or -(c)(i) 27 - HB0040 compared with HB0040S01 (c) (i) the applicant is an individual or sole proprietorship;

Section 58-55-11058-55-110, which is renumbered from Section 58-55-305 is renumbered and amended to read:

[58-55-305] 58-55-110.58-55-110 .

or] [(ii) structures on the sole owner's property for the sole owner's noncommercial, nonpublic use that are incidental to a residential structure on the property, including a shed, carport, or detached garage;] [(e) (i) a person engaged in construction or renovation of a residential building for noncommercial, nonpublic use if that person:] - 2826 - HB0040Enrolled comparedCopy withH.B. HB0040S01 [(A) works without compensation other than token compensation that is not considered salary or wages;

40 [(ii) structures on the sole owner's property for the sole owner's noncommercial, nonpublic use that are incidental to a residential structure on the property, including a shed, carport, or detached garage;] [(e)(i) a person engaged in construction or renovation of a residential building for noncommercial, nonpublic use if that person:] [(A) works without compensation other than token compensation that is not considered salary or wages;

and] [(C) is incidental to the providing of services by the person including paying for or providing meals or refreshment while services are being provided, or paying reasonable transportation costs incurred by the person in travel to the site of construction;] [(f) a person engaged in the sale or merchandising of personal property that by its design or manufacture may be attached, installed, or otherwise affixed to real property who has contracted with a person, firm, or corporation licensed under this chapter to install, affix, or attach that property;] [(g) a contractor submitting a bid on a federal aid highway project, if, before undertaking construction under that bid, the contractor is licensed under this chapter;] [(h)[(h)(i) (i) subject to Subsection 58-1-401(2) and Sections 58-55-501 and 58-55-502, a person engaged in the alteration, repair, remodeling, or addition to or improvement of a building with a contracted or agreed value of less than $7,000, including both labor and materials, and including all changes or additions to the contracted or agreed upon work;

and] [(ii) notwithstanding Subsection (1)(h)(i) and except as otherwise provided in this section:] [(A) work in the plumbing and electrical trades on a Subsection (1)(h)(i) project within any six month period of time:] [(I)- shall27 be- performedH.B. by a licensed electrical or plumbing contractor, if the project involves an electrical or plumbing system;

and]40 [(II)Enrolled mayCopy [(I) shall be performed by a licensed journeymanelectrical electrician or plumberplumbing orcontractor, an individual referred to in Subsection (1)(h)(ii)(A)(I), if the project involves aan component of the system such as a faucet, toilet, fixture, device, outlet, or electrical switch;] - 29 - HB0040 compared with HB0040S01 [(B) installation, repair, or replacementplumbing ofsystem; a residential or commercial gas appliance or a combustion system on a Subsection (1)(h)(i) project shall be performed by a person who has received certification under Subsection 58-55-308(2) except as otherwise provided in Subsection 58-55-308(2)(d) or 58-55-308(3);] [(C) installation, repair, or replacement of water-based fire protection systems on a Subsection (1) (h)(i) project must be performed by a licensed fire suppression systems contractor or a licensed journeyman plumber;] [(D) work as an alarm business or company or as an alarm company agent shall be performed by a licensed alarm business or company or a licensed alarm company agent, except as otherwise provided in this chapter;] [(E) installation, repair, or replacement of an alarm system on a Subsection (1)(h)(i) project must be performed by a licensed alarm business or company or a licensed alarm company agent;] [(F) installation, repair, or replacement of a heating, ventilation, or air conditioning system (HVAC) on a Subsection (1)(h)(i) project must be performed by an HVAC contractor licensed by the division;] [(G) installation, repair, or replacement of a radon mitigation system or a soil depressurization system must be performed by a licensed contractor;

and] [(H)[(II) may be performed by a licensed journeyman electrician or plumber or an individual referred to in Subsection (1)(h)(ii)(A)(I), if the totalproject valueinvolves a component of the system such as a faucet, toilet, fixture, device, outlet, or electrical switch;] [(B) installation, repair, or replacement of a residential or commercial gas appliance or a combustion system on a Subsection (1)(h)(i) project isshall greaterbe thanperformed $3,000,by thea person shallwho filehas withreceived thecertification divisionunder Subsection 58-55-308(2) except as otherwise provided in Subsection 58-55-308(2)(d) or 58-55-308(3);] [(C) installation, repair, or replacement of water-based fire protection systems on a one-Subsection time(1)(h)(i) affirmation,project subjectmust tobe periodicperformed reaffirmationby a licensed fire suppression systems contractor or a licensed journeyman plumber;] [(D) work as establishedan alarm business or company or as an alarm company agent shall be performed by divisiona rule,licensed thatalarm thebusiness personor has:]company [(I)or publica liabilitylicensed insurancealarm company agent, except as otherwise provided in coveragethis amountschapter;] and[(E) forminstallation, establishedrepair, or replacement of an alarm system on a Subsection (1)(h)(i) project must be performed by divisiona rule;licensed alarm business or company or a licensed alarm company agent;] [(F) installation, repair, or replacement of a heating, ventilation, or air conditioning system (HVAC) on a Subsection (1)(h)(i) project must be performed by an HVAC contractor licensed by the division;] [(G) installation, repair, or replacement of a radon mitigation system or a soil depressurization system must be performed by a licensed contractor;

and] [(II)[(H) if applicable,the workerstotal compensationvalue insurance which would cover an employee of the personproject ifis thatgreater employeethan worked$3,000, on the construction project;] [(i) a person practicingshall afile specialtywith contractor classification or construction trade which the directordivision does not classify by administrative rule as significantly impacting the public's health, safety, and welfare;] [(j) owners and lessees of property and persons regularly employed for wages by owners or lessees of property or their agents for the purpose of maintaining the property, are exempt from this chapter when doing work upon the property;] [(k) - 30 - HB0040 compared with HB0040S01 (i) a personone-time engagedaffirmation, insubject minorto plumbingperiodic workreaffirmation that is incidental, as definedestablished by the division by rule, tothat the repairperson ofhas:] a[(I) fixturepublic orliability aninsurance appliance in acoverage residentialamounts orand smallform commercialestablished building,by ordivision structurerule; used for agricultural use, as defined in Section 15A-1-202, provided that no modification is made to:] [(A) existing culinary water, soil, waste, or vent piping;

and] [(II) if applicable, workers compensation insurance which would cover an employee of the person if that employee worked on the construction project;] [(i) a person practicing a specialty contractor classification or construction trade which the director does not classify by administrative rule as significantly impacting the - 28 - Enrolled Copy H.B.

40 public's health, safety, and welfare;] [(j) owners and lessees of property and persons regularly employed for wages by owners or lessees of property or their agents for the purpose of maintaining the property, are exempt from this chapter when doing work upon the property;] [(k)(i) a person engaged in minor plumbing work that is incidental, as defined by the division by rule, to the repair of a fixture or an appliance in a residential or small commercial building, or structure used for agricultural use, as defined in Section 15A-1-202, provided that no modification is made to:] [(A) existing culinary water, soil, waste, or vent piping;

or] [(ii) the installation, maintenance, or repair of on-premise signs;] [(o) a person who ordinarily would be subject to the electrician licensure requirements under this chapter but who during calendar years 2009, 2010, or 2011 was issued a specialty contractor license for the electrical work associated with the installation, repair, or maintenance of solar energy panels, may continue the limited electrical work for solar energy panels under a specialty contractor license;] [(p) a student participating in construction trade education and training programs approved by the commission with the concurrence of the director under the condition that:] - 3129 - HB0040H.B. compared with HB0040S01 [(i) all work intended as a part of a finished product on which there would normally be an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed building inspector;

40 Enrolled Copy [(p) a student participating in construction trade education and training programs approved by the commission with the concurrence of the director under the condition that:] [(i) all work intended as a part of a finished product on which there would normally be an inspection by a building inspector is, in fact, inspected and found acceptable by a licensed building inspector;

(a)(a)(i) (i) "Sign contractor" means a sign installation contractor or nonelectrical outdoor advertising sign contractor, as classified and defined in division rules.

(b)(b)(i) (i) "Token compensation" means compensation that is minimal in value when compared with the fair market value of the services provided by the person.

- 3230 - HB0040Enrolled comparedCopy withH.B. HB0040S01 (2) In addition to the exemptions from licensure in Section 58-1-307, the following may engage in a construction trade without a license:

40 (2) In addition to the exemptions from licensure in Section 58-1-307, the following may engage in a construction trade without a license:

and (ii) there is an existing gas shutoff valve at the appliance.appliance;

(f)- an31 elevator- mechanicH.B. assistant if:

40 Enrolled Copy (f) an elevator mechanic assistant if:

and - 33 - HB0040 compared with HB0040S01 (ii) the construction trade is at the direction of the licensed elevator mechanic;

and (ii)(ii)(A) (A) the construction trade is incidental to installing or repairing an above-ground, prebuilt hot tub or spa;

- 34 - HB0040 compared with HB0040S01 (n) subject to Subsection (3), a person working on a project that has a total cost of less than $7,000 including labor, material, and changes to the agreed upon work if the construction trade:

(i)- does32 not- involveEnrolled anCopy electricalH.B. or plumbing system;

40 (i) does not involve an electrical or plumbing system;

(i)(i)(A) (A) the sole property owner builds for the sole owner's noncommercial and nonpublic use no more than one residential structure per year on the sole owner's property and no more than three residential structures per five years on the sole owner's property;

and - 35 - HB0040 compared with HB0040S01 (ii) the volunteer works under the direction of the property owner;

(i) the construction trade is incidental to installing or repairing a water conditioner or other- water33 treatment- apparatus;H.B.

40 Enrolled Copy other water treatment apparatus;

(3)(3)(a) (a) If the total value of the project under Subsection (2)(n) is greater than $3,000, the person shall:

Section 58-55-11158-55-111, which is renumbered from Section 58-55-307 is renumbered and amended to read:

[58-55-307] 58-55-111.58-55-111 .

- 36 - HB0040 compared with HB0040S01 (2) Notwithstanding the provisions of Title 63G, Chapter 2, Government Records Access and Management Act, [the records] a record described in Subsection (1) [are] is not open for public inspection and [are] is not subject to discovery in civil or administrative proceedings.

Section- 17.34 - Enrolled Copy H.B.

40 Section 1717. is enacted to read:

58-55-112.Section 58-55-112 is enacted to read:

58-55-112 .

(1)(1)(a)(i) (a) (i) A contractor that is an unincorporated entity shall file an ownership status report with the division every 30 days beginning 30 days after the day on which the division issues the license if the contractor has more than five owners who are individuals that:

- 37 - HB0040 compared with HB0040S01 (c) At any time, the division may audit an ownership status report under this Subsection (1) to determine if the unincorporated entity:

(2)- An35 unincorporated- entityH.B. that provides labor to an entity licensed under this chapter by supplying an individual who owns an interest in the unincorporated entity to engage in a construction trade shall file with the division:

40 Enrolled Copy (2) An unincorporated entity that provides labor to an entity licensed under this chapter by supplying an individual who owns an interest in the unincorporated entity to engage in a construction trade shall file with the division:

(5)(5)(a) (a) A social security number an individual provides under this section is a private record under Subsection 63G-2-302(1)(i).

Section 1858-55-202 is enacted to read:

58-55-202.Part 2.

Contractors 58-55-202 .

2.As used in this part:

Contractors As used in this part:

- 38 - HB0040 compared with HB0040S01 (ii) the Utah Chapter of the Associated Builders and Contractors;

(2)- "Elevator36 contractor"- meansEnrolled aCopy personH.B. that performs or superintends erecting, constructing, installing, altering, servicing, repairing, or maintaining an elevator.

(3)40 (a)(2) "General"Elevator building contractor" means a person that performs or superintends:superintends erecting, constructing, installing, altering, servicing, repairing, or maintaining an elevator.

(3)(a) "General building contractor" means a person that performs or superintends:

(4) "General electrical contractor" means a person that performs or superintends the fabrication, construction, and installation of generators, transformers, conduits, raceways, panels, switch gear, - 39 - HB0040 compared with HB0040S01 electrical wires, fixtures, appliances, apparatus that uses electrical energy, or other work the division authorizes by rule in accordance with Subsection 58-55-105(3).

(e)- drainage;37 - H.B.

40 Enrolled Copy (e) drainage;

- 40 - HB0040 compared with HB0040S01 (a) a supply of safe and pure water;

(b) the timely and complete removal from the premises of used or contaminated water, fluid and semi-semi-fluid fluid organic wastes, and other impurities incidental to life;

(8) "HVAC contractor" means a person that performs or superintends the installation, maintenance, repair, and servicing of heating, ventilation, air conditioning systems or any other work the division authorizes by rule in accordance with Subsection 58-55-105(3).- 38 - Enrolled Copy H.B.

(9)40 (a)58-55-105(3). "Residential and small commercial contractor" means a person that performs or superintends the construction or supervision of the construction for:

(9)(a) "Residential and small commercial contractor" means a person that performs or superintends the construction or supervision of the construction for:

- 41 - HB0040 compared with HB0040S01 (a) the fabrication, construction, and installation of services;

(b) the timely and complete removal from the premises of used or contaminated water, fluid and semi-semi-fluid fluid organic wastes and other impurities incidental to life;

(c)- a39 safe- andH.B. adequate supply of gas for lighting, heating, and residential purposes;

40 Enrolled Copy (c) a safe and adequate supply of gas for lighting, heating, and residential purposes;

Section 1958-55-203 is enacted to read:

58-55-203.58-55-203 .

and - 42 - HB0040 compared with HB0040S01 (f) except for an applicant for a construction trades instructor license, provide evidence of:

(3) An applicant who is a licensed journeyman lineman in another jurisdiction may satisfy Subsection- (1)(f)(i)40 by- meetingEnrolled theCopy requirementsH.B. the division makes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

40 Subsection (1)(f)(i) by meeting the requirements the division makes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

- 43 - HB0040 compared with HB0040S01 (8) Each qualifier shall meet the following additional requirements:

or (e)- for41 elevator- contractorH.B. licensure, the qualifier shall hold an elevator mechanic license and provide satisfactory evidence of three-years' experience as an elevator mechanic.

(9)40 (a)Enrolled TheCopy (e) for elevator contractor licensure, the qualifier shall hold an elevator mechanic license and eachprovide individualsatisfactory holdingevidence atof leastthree-years' aexperience 10%as votingan interestelevator shall:mechanic.

(9)(a) The qualifier and each individual holding at least a 10% voting interest shall:

(10)(10)(a) (a) Before the division issues a license, the applicant shall file with the division:

(i)(i)(A) (A) proof of workers' compensation insurance covering the applicant's employees;

- 44 - HB0040 compared with HB0040S01 (b) An applicant for licensure as a construction trades instructor is exempt from the requirements under this Subsection (10).

Section 2058-55-204 is enacted to read:

58-55-204.58-55-204 .

(2)(2)(a) (a) Subject to Subsections (2)(b) through (2)(e), the commission shall establish by rule,- made42 with- theEnrolled concurrenceCopy ofH.B. the director and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, approved continuing education for contractor licensees.

40 rule, made with the concurrence of the director and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, approved continuing education for contractor licensees.

(d)(d)(i) - 45 - HB0040 compared with HB0040S01 (i) Except as provided in Subsections (2)(d)(ii) and (2)(d)(iii), an entity listed in Subsections (2)(b)(iv) through (2)(b)(xii) may offer and market continuing education courses only to a licensee who is a member of the entity.

(e) For an HVAC contractor, at least three of the six required continuing education hours must directly relate to the installation, repair, or replacement of heating, ventilation, or- air43 conditioning- systems.H.B.

40 Enrolled Copy or air conditioning systems.

Section 2158-55-205 is enacted to read:

58-55-205.58-55-205 .

(a)(a)(i) (i) completing a financial responsibility questionnaire the division prepares;

- 46 - HB0040 compared with HB0040S01 (4) The applicant, the licensee, and a person that holds an ownership interest in an unincorporated entity licensee bear the burden of demonstrating financial responsibility.

(5)(5)(a) (a) When reviewing the financial responsibility of an unincorporated entity, the division:

(A) audit the personal financial information of a person that holds an ownership interest;- 44 - Enrolled Copy H.B.

40 interest;

Section 58-55-20658-55-206, which is renumbered from Section 58-55-310 is renumbered and amended to read:

[58-55-310] 58-55-206.58-55-206 .

[Each political subdivision and agency of the state and each board of education which requires the issuance of a permit or license as a precondition to the construction, alteration, improvement, demolition, or other repairs for which a contractor's license is also required under this chapter shall:] [(1) require that each applicant for a permit or license file a signed statement that the applicant has a current contractor's license with the license number included in the application;] - 47 - HB0040 compared with HB0040S01 [(2) require that any representation of exemption from the contractor's licensing law be included in the signed statement and that if that exempt person, firm, corporation, association, or other organization intends to hire a contractor to perform any work under the permit or license, that the license number of that contractor be included in the application, but if a contractor has not been selected at the time of the application for a permit or license, the permit or license shall be issued only on the condition that a currently- licensed45 contractor- willH.B. be selected and that the license number of the contractor will be given to the issuing public body and displayed on the permit or license;] [(3) require that, upon issuance of a permit or license, the contractor affix the contractor's license number to that permit or license for public display;

and]A40 politicalEnrolled subdivisionCopy orcurrently statelicensed agencycontractor will be selected and that requiresthe alicense permitnumber asof athe preconditioncontractor will be given to construction,the alteration,issuing improvement,public demolition,body and displayed on the permit or otherlicense;] repair[(3) workrequire andthat, requiresupon issuance of a permit or license, the contractor affix the contractor's license shall:number to that permit or license for public display;

and] [(4) require the contractor to provide proof that the contractor provides workers' compensation insurance, pays into the unemployment insurance fund, provides health insurance as required under federal or state law, and withholds applicable taxes from worker pay.] (1)A requirepolitical eachsubdivision contractoror applyingstate foragency that requires a permit toas includea inprecondition theto applicationconstruction, aalteration, signedimprovement, statementdemolition, verifyingor thatother therepair contractorwork holdsand requires a current contractor license andshall: providing the license number;

(1) require each contractor applying for a permit to include in the application a signed statement verifying that the contractor holds a current contractor license and providing the license number;

- 48 - HB0040 compared with HB0040S01 Section 23.

Section 2358-55-207 is enacted to read:

58-55-207.58-55-207 .

(1) A contractor that pays a material supplier, a contractor, or a subcontractor with which the contractor maintains a running account, holds multiple contracts, or owes an outstanding- debt46 shall:- Enrolled Copy H.B.

40 outstanding debt shall:

Section 2458-55-208 is enacted to read:

58-55-208.58-55-208 .

Section 2558-55-209 is enacted to read:

58-55-209.58-55-209 .

-(2)(a) 49 - HB0040 compared with HB0040S01 (2) (a) A contractor shall pay a subcontractor or supplier on or before the later of:

(b) Unless otherwise agreed by contract or for reasonable cause, a contractor that receives funds and does not comply with Subsection (2)(a) shall pay to the subcontractor- or47 supplier:- H.B.

40 Enrolled Copy subcontractor or supplier:

Section 2658-55-210 is enacted to read:

58-55-210.58-55-210 .

Section 2758-55-211 is enacted to read:

58-55-211.58-55-211 .

- 50 - HB0040 compared with HB0040S01 (ii) Social Security tax;

(b)- retain48 a- copyEnrolled ofCopy eachH.B. pay statement described in Subsection (1) for at least three years after the day on which the person gives a copy of the pay statement to the individual;

40 (b) retain a copy of each pay statement described in Subsection (1) for at least three years after the day on which the person gives a copy of the pay statement to the individual;

Section 58-55-21258-55-212, which is renumbered from Section 58-55-702 is renumbered and amended to read:

[58-55-702] 58-55-212 .

(5)(5)(a) (a) The division shall establish a process for a licensed contractor to:

- 51 - HB0040 compared with HB0040S01 (i) [before entry into the Construction Business Registry, specify the licensed contractor's] provide the contact information that the licensed contractor wants included in the Construction Business Registry before entry into the Construction Business Registry;

(b) If a licensed contractor does not specify the licensed contractor's contact information for the Construction Business Registry, the division shall include in the Construction Business- Registry49 only- publicH.B. contact information for the licensed contractor.

40 Enrolled Copy Business Registry only public contact information for the licensed contractor.

(7) The division may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish and maintain the Construction Business RegistryRegistry. Section 29.

Section 29.

58-55-301.Part 3.

Electricians 58-55-301 .

3.As used in this part:

Electricians As used in this part:

(2)(2)(a) (a) "Electrical trade" means the performance of electrical work involving the installation, construction, alteration, change, repair, removal, or maintenance of facilities, buildings, or appendages or appurtenances.

- 52 - HB0040 compared with HB0040S01 (v) work involving class two or class three power-limited circuits as defined in the National Electrical Code;

(4)- "Journeyman50 lineman"- meansEnrolled anCopy individualH.B. who builds and maintains an electrical power system, performs work on transmission lines or distribution lines from power plants to customers and has completed a 7,000 hour certified apprenticeship program.

40 (4) "Journeyman lineman" means an individual who builds and maintains an electrical power system, performs work on transmission lines or distribution lines from power plants to customers and has completed a 7,000 hour certified apprenticeship program.

58-55-302.58-55-302 .

(3)(3)(a) (a) The surcharge may not exceed $5.

- 53 - HB0040 compared with HB0040S01 (b) The surcharge described in Subsection (3)(a) is in addition to the surcharge described in Section 58-55-106.

(4)(4)(a) (a) The fund shall earn interest.

(6)- If51 the- balanceH.B. in the fund is more than $100,000 at the end of any fiscal year, the division shall transfer the amount that exceeds $100,000 to the General Fund.

40 Enrolled Copy (6) If the balance in the fund is more than $100,000 at the end of any fiscal year, the division shall transfer the amount that exceeds $100,000 to the General Fund.

58-55-303.58-55-303 .

or - 54 - HB0040 compared with HB0040S01 (d) meets the qualifications for expedited licensure the commission establishes with the concurrence of the director and by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(a) successfully completed at least four-years' full-time training and instruction as a licensed- apprentice52 electrician- underEnrolled theCopy supervisionH.B. of a licensed master electrician or a licensed journeyman electrician, in accordance with a training program the division approves;

40 licensed apprentice electrician under the supervision of a licensed master electrician or a licensed journeyman electrician, in accordance with a training program the division approves;

(6)(6)(a) (a) An apprentice electrician applicant shall identify to the division the proposed supervisor of the apprenticeship.

- 55 - HB0040 compared with HB0040S01 (i) ensure the apprentice electrician works under the immediate supervision of a licensed master, journeyman, residential master, or residential journeyman electrician for the initial three-years' training;

58-55-304.58-55-304 .

(1) During each two-year license term the division establishes by rule in accordance with Section- 58-55-108,53 a- licensedH.B. electrician shall complete 16 hours of continuing education.

40 Enrolled Copy Section 58-55-108, a licensed electrician shall complete 16 hours of continuing education.

58-55-401.Part 4.

Plumbers 58-55-401 .

4.As used in this part:

Plumbers As used in this part:

- 56 - HB0040 compared with HB0040S01 (2) "Journeyman plumber" means an individual who engages in the plumbing trade.

(5)(5)(a) (a) "Plumbing trade" means the performance of mechanical work pertaining to the installation, alteration, change, repair, removal, maintenance, or use in buildings, or within three feet beyond the outside walls of buildings, pipes, fixtures, and fittings for the:

and (iv)- delivery54 of- gasesEnrolled forCopy lighting,H.B. heating, and industrial purposes.

40 (iv) delivery of gases for lighting, heating, and industrial purposes.

58-55-402.58-55-402 .

(3)(3)(a) (a) The surcharge may not exceed $5.

- 57 - HB0040 compared with HB0040S01 (b) The surcharge described in Subsection (3)(a) is in addition to the surcharge described in Section 58-55-106.

(4)(4)(a) (a) The fund shall earn interest.

and (b)- fund55 expenditures.- H.B.

40 Enrolled Copy (b) fund expenditures.

Section 3558-55-404 is enacted to read:

58-55-404.58-55-404 .

or - 58 - HB0040 compared with HB0040S01 (c) meets the qualifications for expedited licensure the commission establishes by rule, with the concurrence of the director and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

or (c) meets the qualifications for expedited licensure the commission establishes by rule, with the concurrence of the director and in accordance with Title 63G, Chapter 3, Utah- Administrative56 Rulemaking- Act.Enrolled Copy H.B.

40 Utah Administrative Rulemaking Act.

(6)(6)(a) (a) An apprentice plumber applicant shall identify to the division the proposed supervisor of the apprenticeship.

- 59 - HB0040 compared with HB0040S01 (b) Upon licensure, an apprentice plumber and the apprentice plumber's supervisor shall:

Section 3658-55-405 is enacted to read:

58-55-405.58-55-405 .

and (c)- a57 list- ofH.B. courses that:

40 Enrolled Copy (c) a list of courses that:

58-55-501.Part 5.

Miscellaneous Licenses 58-55-501 .

5.As used in this part:

Miscellaneous Licenses As used in this part:

- 60 - HB0040 compared with HB0040S01 (2) "Commercial construction project" means a construction, alteration, repair, demolition, or excavation project that does not involve:

(3)(3)(a) (a) "Crane" means a power-operated hoisting machine used in construction, demolition, or excavation work that has a power-operated winch, load-line, and boom moving laterally by the rotation of the machine on a carrier.

(5)(5)(a) (a) "Elevator" means the same as that term is defined in Section 34A-7-202;

(9)- "Gas58 corporation"- meansEnrolled theCopy sameH.B. as that term is defined in Section 54-2-1.

40 (9) "Gas corporation" means the same as that term is defined in Section 54-2-1.

(11)(11)(a) (a) "Natural gas facility" means:

- 61 - HB0040 compared with HB0040S01 (b) "Natural gas facility" includes any necessary appurtenant facilities.

(12)(12)(a) (a) "Natural gas main" means a natural gas distribution pipeline that delivers natural gas to another natural gas distribution supply line or to a natural gas service line.

58-55-502.58-55-502 .

(1)(1)(a) (a) The commission, with the concurrence of the director, may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to:

and (ii) considerations of the public health, safety, and welfare, including the licensees' education, training, experience, knowledge, and financial responsibility in accordance- with59 Section- 58-55-205.H.B.

(2)40 ThisEnrolled partCopy does not prohibit a specialty contractor as defined in Section 58-55-202, that is licensed in accordance with PartSection 2,58-55-205. Contractors, from entering into a contract involving two or more - 62 - HB0040 compared with HB0040S01 construction trades if the contracted construction trade is incidental to the construction trade for which the contractor is licensed.

(2) This part does not prohibit a specialty contractor as defined in Section 58-55-202, that is licensed in accordance with Part 2, Contractors, from entering into a contract involving two or more construction trades if the contracted construction trade is incidental to the construction trade for which the contractor is licensed.

58-55-503.58-55-503 .

(1)(1)(a) (a) This section applies to:

(2) The division may exempt an individual from the training requirements described in Subsection (1)(1)(b) (b) if the division determines the individual has adequate experience.

(a)(a)(i) (i) passes a test equivalent to the level of testing the division requires for certification;

58-55-504.58-55-504 .

[(1) As used in this section:] [(a) "Commercial construction projects" means construction, alteration, repair, demolition, or excavation projects that do not involve:] - 6360 - HB0040Enrolled comparedCopy withH.B. HB0040S01 [(i) single family detached housing;] [(ii) multifamily attached housing up to and including a fourplex;

or]40 [(iii) commercial construction of not more than two stories above ground.] [(b) (i) "Crane operator" means an individual engaged in operating a crane, which for purposes of this section is a power-operated hoisting machine used in construction, demolition, or excavation workprojects that hasdo anot power-operatedinvolve:] winch,[(i) load-line,single andfamily boomdetached movinghousing;] laterally by the rotation of the machine on a carrier.] [(ii) Itmultifamily doesattached nothousing includeup operating a fork lift, digger derrick truck, aircraft, bucket truck, knuckle boom, side boom, mechanic's truck, or a vehicle or machine not using a power-operated winch and load- line.] [(2) (a) In order to operate a crane on commercial construction projects, an individual shall be certified as a crane operator by the National Commission for the Certification of Crane Operators or any other organization determined by the division to offer an equivalent testing and certificationincluding program that meets the requirements of the American Society of Mechanical Engineers ASME B 30.5 and the accreditation requirements of the National Commission for Certifying Agencies.] [(b) An individual who violates Subsection (2)(a) is guilty of a classfourplex; A misdemeanor.] [(3) An individual engaged in construction or operation incidental to petroleum refining or electrical utility construction or maintenance is exempt from the crane operator certification requirement of Subsection (2)(a).] (1) To operate a crane on a commercial construction project, an individual shall obtain certification as a crane operator from:

or] [(iii) commercial construction of not more than two stories above ground.] [(b)(i) "Crane operator" means an individual engaged in operating a crane, which for purposes of this section is a power-operated hoisting machine used in construction, demolition, or excavation work that has a power-operated winch, load-line, and boom moving laterally by the rotation of the machine on a carrier.] [(ii) It does not include operating a fork lift, digger derrick truck, aircraft, bucket truck, knuckle boom, side boom, mechanic's truck, or a vehicle or machine not using a power-operated winch and load-line.] [(2)(a) In order to operate a crane on commercial construction projects, an individual shall be certified as a crane operator by the National Commission for the Certification of Crane Operators or any other organization determined by the division to offer an equivalent testing and certification program that meets the requirements of the American Society of Mechanical Engineers ASME B 30.5 and the accreditation requirements of the National Commission for Certifying Agencies.] [(b) An individual who violates Subsection (2)(a) is guilty of a class A misdemeanor.] [(3) An individual engaged in construction or operation incidental to petroleum refining or electrical utility construction or maintenance is exempt from the crane operator certification requirement of Subsection (2)(a).] (1) To operate a crane on a commercial construction project, an individual shall obtain certification as a crane operator from:

Section 4158-55-505 is enacted to read:

- 6461 - HB0040H.B. compared with HB0040S01 58-55-505.

40 Enrolled Copy 58-55-505 .

Section 4258-55-506 is enacted to read:

58-55-506.58-55-506 .

(2)(2)(a) (a) If a licensed elevator contractor cannot find a licensed elevator mechanic to perform elevator work, the contractor shall notify the division about the shortage of licensed personnel.

- 6562 - HB0040Enrolled comparedCopy withH.B. HB0040S01 (c) If a licensed elevator contractor requests a temporary elevator mechanic license under Subsection (2)(b), the division may issue the temporary license to the individual the licensed elevator contractor certifies if the individual:

40 (c) If a licensed elevator contractor requests a temporary elevator mechanic license under Subsection (2)(b), the division may issue the temporary license to the individual the licensed elevator contractor certifies if the individual:

Section 4358-55-507 is enacted to read:

58-55-507.58-55-507 .

Section 4458-55-508 is enacted to read:

58-55-508.58-55-508 .

(1)(1)(a) (a) Except as provided in Subsections (1)(b) and (c), a qualifying installer shall pay the costs to install natural gas facilities.

- 66 - HB0040 compared with HB0040S01 (c) If a gas corporation requires a qualifying installer to install natural gas facilities that are greater than the minimum system, the gas corporation shall pay the difference in cost between the required natural gas facilities and the minimum system.

(2)- A63 gas- corporationH.B. shall verify through inspection and testing that natural gas facilities that a qualifying installer installs comply with applicable federal, state, and local law and natural gas tariff specifications.

40 Enrolled Copy (2) A gas corporation shall verify through inspection and testing that natural gas facilities that a qualifying installer installs comply with applicable federal, state, and local law and natural gas tariff specifications.

58-55-601.Part 6.

Unlawful and Unprofessional Conduct 58-55-601 .

6.A person engages in unlawful conduct if the person:

Unlawful and Unprofessional Conduct A person engages in unlawful conduct if the person:

- 67 - HB0040 compared with HB0040S01 (11) does business under a name other than the name on the license, unless statute or rule allows otherwise;

(13)- as64 a- contractor,Enrolled receivesCopy fundsH.B. from a person to pay for work performed or materials and services provided for a specific project, and after receiving the funds, fails to pay all amounts due to those who performed the work or provided materials or services within a reasonable time;

40 (13) as a contractor, receives funds from a person to pay for work performed or materials and services provided for a specific project, and after receiving the funds, fails to pay all amounts due to those who performed the work or provided materials or services within a reasonable time;

- 68 - HB0040 compared with HB0040S01 (a) workers' compensation coverage as required under Title 34A, Chapter 2, Workers' Compensation Act, or Title 34A, Chapter 3, Utah Occupational Disease Act, or as would be required if licensed under this chapter;

or (b)- provides65 labor- toH.B. another licensed entity by supplying an individual who uses a social security number that does not belong to that individual;

40 Enrolled Copy (b) provides labor to another licensed entity by supplying an individual who uses a social security number that does not belong to that individual;

58-55-602.58-55-602 .

(1)(1)(a) (a) An individual commits a class A misdemeanor by violating:

or - 69 - HB0040 compared with HB0040S01 (iv) failing to comply with a citation issued under this chapter.

(2)(2)(a) (a) An individual commits an infraction by violating Subsection 58-55-601(13).

58-55-603.58-55-603 .

(2)- disregards66 or- violates,Enrolled throughCopy grossH.B. negligence or a pattern of negligence:

40 (2) disregards or violates, through gross negligence or a pattern of negligence:

- 70 - HB0040 compared with HB0040S01 (d) fails to reimburse the Residence Lien Recovery Fund as required under Section 38-11-207;

58-55-604.- 67 - H.B.

40 Enrolled Copy 58-55-604 .

(2)(2)(a) (a) If an investigation shows a person committed a qualifying violation, or violated a division rule or order related to a qualifying violation, the division shall:

or (iii) require the person to appear in an adjudicative proceeding in accordance with Title 63G, Chapter 4, Administrative Procedures Act;Act.

(3)(3)(a) (a) Each citation shall:

- 71 - HB0040 compared with HB0040S01 (i) be in writing;

(4)(4)(a) (a) The division may deny, suspend, revoke, place on probation, or refuse to issue or renew the license of a person that does not comply with a final citation.

(a)- except68 as- providedEnrolled inCopy SubsectionH.B. (5)(b), for a qualifying violation:

40 (a) except as provided in Subsection (5)(b), for a qualifying violation:

and (iii) for an additional qualifying violation, other than a violation described in Subsection 58-55-601(14)58-55-601(14)(e) (e) or (24), up to $2,000 per day of continued offense;

(6)(6)(a) (a) Except as provided in Subsection (8), the division shall consider a qualifying violation a second or additional offense if:

or - 72 - HB0040 compared with HB0040S01 (ii) the division initiated an action for an earlier offense and finds a second qualifying violation during a new investigation before resolving the initial case.

(7)(7)(a) (a) The division shall revoke a license if the licensee violates Subsection 58-55-601(19) or (20) two or more times in a 12-month period.

or (b)- the69 licensee- failsH.B. to:

40 Enrolled Copy (b) the licensee fails to:

58-55-605.58-55-605 .

- 73 - HB0040 compared with HB0040S01 (b) revoke the right of a licensee to recover from the Residence Lien Recovery Fund created by Section 38-11-201;

Section 5058-55-606 is enacted to read:

58-55-606.58-55-606 .

(2)(2)(a) (a) The division shall investigate:

(4)(4)(a) (a) The division shall inspect construction trade to determine compliance with Subsections 58-1-501(2)58-1-501(2)(a)(vii), (a)(vii), 58-55-601(14), and 58-55-602(2) through (4).

(b) Except for Subsection (4)(a), the division has no obligation to inspect construction trade- to70 determine- complianceEnrolled withCopy applicableH.B. code or industry standard.

40 trade to determine compliance with applicable code or industry standard.

Section 5158-55-607 is enacted to read:

58-55-607.58-55-607 .

- 74 - HB0040 compared with HB0040S01 (1) The division shall deposit collected fines into the Commerce Service Account created under Section 13-1-2.

Section 5258-91-101 is enacted to read:

58-91-101.CHAPTER 91.

Alarm Company Licensing Act Part 1.

General Provisions 58-91-101 .

91.As used in this chapter:

Alarm(1)(a) Company"Alarm Licensingcompany" Actmeans 1.a person that installs, maintains, alters, repairs, replaces, services, or monitors an alarm system.

General Provisions As used in this chapter:

(1) (a) "Alarm company" means a person that installs, maintains, alters, repairs, replaces, services, or monitors an alarm system.

(2)(2)(a) (a) "Alarm company agent" means an individual that an alarm company employs within- this71 state- thatH.B. sells, installs, maintains, alters, repairs, replaces, services, or monitors an alarm system.

40 Enrolled Copy within this state that sells, installs, maintains, alters, repairs, replaces, services, or monitors an alarm system.

- 75 - HB0040 compared with HB0040S01 (c) a general partner, as defined in Section 48-2e-102, of an alarm company;

(7)(7)(a) (a) "Alarm system" means equipment for detecting and signaling unauthorized intrusion or entry into or onto a protected premises.

(9) (a) "Control position" means a person that exercises direct or indirect control over an entity.

(10) (a) "Control position" includes:

(i)(a) a corporate officer or a director;

(ii)(b) a shareholder who owns 25% or more of the stock;

(iii)(c) a partner or a member;

and (iv)- a72 qualifier.- Enrolled Copy H.B.

40 (d) a qualifier.

- 76 - HB0040 compared with HB0040S01 (12) "Qualifier" means the individual who has the license that allows an alarm company to engage as a licensed alarm company.

Section 5358-91-102 is enacted to read:

58-91-102.58-91-102 .

(1)(1)(a) (a) The division shall collect a $1 surcharge from each applicant for an initial license, a renewal of a license, or a reinstatement of a license.

(b)- The73 surcharge- describedH.B. in Subsection (1)(a) is in addition to other fees this chapter or the division authorizes in accordance with Section 63J-1-504.

(2)40 -Enrolled 77Copy -(b) HB0040The comparedsurcharge withdescribed HB0040S01in (a)Subsection The(1)(a) divisionis shallin depositaddition theto surchargeother intofees this chapter or the Generaldivision Fundauthorizes asin aaccordance dedicatedwith credit.Section 63J-1-504.

(b)(2)(a) The division shall usedeposit the dedicatedsurcharge creditsinto tothe provideGeneral aFund licenseeas witha accessdedicated tocredit. an internet-based library of national, state, and local building codes and standards.

(b) The division shall use the dedicated credits to provide a licensee with access to an i nternet-based library of national, state, and local building codes and standards.

Section 5458-91-103 is enacted to read:

58-91-103.58-91-103 .

Section 5558-91-201 is enacted to read:

58-91-201.Part 2.

Board 58-91-201 .

2.(1)(a) There is created the Alarm System Security and Licensing Board consisting of the following members:

Board (1) (a) There is created the Alarm System Security and Licensing Board consisting of the following members:

- 78 - HB0040 compared with HB0040S01 (d) overseeing the screening of applicants for licensing, renewal, reinstatement, and relicensure;- 74 - Enrolled Copy H.B.

40 relicensure;

Section 5658-91-301 is enacted to read:

58-91-301.Part 3.

Licensing 58-91-301 .

3.(1)(a) A person shall obtain a license under this chapter before engaging as an alarm company or an alarm company agent unless the person is exempt from licensure under Section 58-1-307 or 58-91-306.

Licensing (1) (a) A person shall obtain a license under this chapter before engaging as an alarm company or an alarm company agent unless the person is exempt from licensure under Section 58-1-307 or 58-91-306.

- 79 - HB0040 compared with HB0040S01 (d) is capable of producing an electric charge on contact that does not exceed energizer characteristics- set75 for- electricH.B. fence energizers by the International Electrotechnical Commission;

40 Enrolled Copy characteristics set for electric fence energizers by the International Electrotechnical Commission;

(g) is marked with conspicuous warning signs that are located on the battery-charged suspended-suspended-wire wire system or fence at no more than 30-foot intervals and that read "WARNING -- ELECTRIC FENCE";

Section 5758-91-302 is enacted to read:

58-91-302.58-91-302 .

(4)(4)(a) (a) The division shall require an alarm company to have a qualifier.

- 8076 - HB0040Enrolled comparedCopy withH.B. HB0040S01 (5) (a) The division may take action against:

40 (5)(a) The division may take action against:

(6)(6)(a) (a) If a qualifier for an alarm company ceases association with the alarm company, the alarm company shall notify the division in writing within 10 days after the day on which the association ceases.

Section 5858-91-303 is enacted to read:

58-91-303.58-91-303 .

(1)(1)(a) (a) The division shall issue a license for a term of two years as the division establishes by rule the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(2)(2)(a) (a) The division shall renew or reinstate an individual license after the applicant:

- 81 - HB0040 compared with HB0040S01 (ii) lists the individual acting as the qualifier for the alarm company;

(4)- In77 addition- toH.B. requirements imposed by law, an applicant applying for reinstatement of a license the division suspended or revoked shall:

40 Enrolled Copy (4) In addition to requirements imposed by law, an applicant applying for reinstatement of a license the division suspended or revoked shall:

Section 5958-91-304 is enacted to read:

58-91-304.58-91-304 .

- 82 - HB0040 compared with HB0040S01 (A) are declared by a court with jurisdiction incompetent by reason of mental defect or disease and not been restored;

(B)- workers'78 compensation- insuranceEnrolled thatCopy coversH.B. employees of the applicant in accordance with applicable Utah law;

40 (B) workers' compensation insurance that covers employees of the applicant in accordance with applicable Utah law;

(4)(4)(a) (a) The division shall deny an application for licensure under this chapter if:

- 83 - HB0040 compared with HB0040S01 (i) the applicant has had a previous license issued under this chapter suspended or revoked within two years before the date of the applicant's application;

(ii)(ii)(A) (A) the applicant is a partnership, corporation, or limited liability company;

or (iii)(iii)(A) (A) the applicant is an individual or sole proprietorship;

and (B) any person that served in a control position in any entity which has had a previous- license,79 which- wasH.B. issued under this chapter, suspended or revoked within two years before the date of the applicant's application.

40 Enrolled Copy previous license, which was issued under this chapter, suspended or revoked within two years before the date of the applicant's application.

(ii)(ii)(A) (A) the applicant is a partnership, corporation, or limited liability company;

or (iii)(iii)(A) (A) the applicant is an individual or sole proprietorship;

Section 6058-91-305 is enacted to read:

58-91-305.58-91-305 .

and - 84 - HB0040 compared with HB0040S01 (2) display the license upon the request of a peace officer, a representative of the division, or a representative of a customer of the alarm company.

Section 6158-91-306 is enacted to read:

58-91-306.58-91-306 .

Section 6258-91-307 is enacted to read:

58-91-307.58-91-307 .

(b)- (i)80 the- applicantEnrolled isCopy orH.B. will be employed at a call center, office, or administrative facility of an alarm company;

40 (b)(i) the applicant is or will be employed at a call center, office, or administrative facility of an alarm company;

Section 6358-91-401 is enacted to read:

58-91-401.Part 4.

License Denial and Discipline 58-91-401 .

4.(1) The division is responsible for the investigation of a person or an activity that violates a provision of this chapter.

License Denial and Discipline - 85 - HB0040 compared with HB0040S01 (1) The division is responsible for the investigation of a person or an activity that violates a provision of this chapter.

Section 6458-91-501 is enacted to read:

58-91-501.Part 5.

Unlawful and Unprofessional Conduct 58-91-501 .

5.A person engages in unlawful conduct if the person:

Unlawful and Unprofessional Conduct A person engages in unlawful conduct if the person:

(3) willfully or deliberately misrepresents or omits a material fact when applying to obtain or- renew81 a- license;H.B.

40 Enrolled Copy or renew a license;

Section 6558-91-502 is enacted to read:

58-91-502.58-91-502 .

- 86 - HB0040 compared with HB0040S01 (1) violating Subsections 58-91-501(1) through (4), or Subsections 58-91-50158-91-501(6) (6) through (9);

Section 6658-91-503 is enacted to read:

58-91-503.58-91-503 .

(6) as an alarm company or alarm company agent, fails to inform a potential customer, before the customer purchases an alarm system or alarm service, about the policy of the county, city, or town where the customer resides about priority levels for responding to alarm- signals82 transmitted- byEnrolled theCopy alarmH.B. system;

40 alarm signals transmitted by the alarm system;

Section 6758-91-504 is enacted to read:

58-91-504.58-91-504 .

(2)(2)(a) (a) If an investigation shows a person committed a qualifying violation, or broke a related rule or order the division issued regarding a qualifying violation, the division shall: