Bill Summary – FastDemocracy

Enrolled Copy                                                                               H.B. 483
                          CONSTRUCTION TRADE AMENDMENTS
                                           2024 GENERAL SESSION
                                                STATE OF UTAH
                                       Chief Sponsor: Carl R. Albrecht Senate Sponsor: Don L. Ipson
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  LONG TITLE
  General Description:
      This bill modifies the exemptions from licensure under the Utah Construction Trades
  Licensing Act and adds to the definition of qualifying violation.
  Highlighted Provisions:
      This bill:
      ▸ modifies the threshold dollar amount allowing a person to engage in construction trades
  without being licensed; and
      ▸ adds failure to obtain a building permit as a qualifying violation.
  Money Appropriated in this Bill:
      None
  Other Special Clauses:
      None
  Utah Code Sections Affected:
  AMENDS:
      58-55-305, as last amended by Laws of Utah 2020, Chapter 339
      58-55-503, as last amended by Laws of Utah 2023, Chapters 111, 223
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  Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 58-55-305 is amended to read:
        58-55-305 . Exemptions from licensure.
  (1) In addition to the exemptions from licensure in Section 58-1-307, the following persons
      may engage in acts or practices included within the practice of construction trades,
      subject to the stated circumstances and limitations, without being licensed under this
      chapter:
      (a) an authorized representative of the United States government or an authorized
     H.B. 483                                                                                  Enrolled Copy
            employee of the state or any of its political subdivisions when working on
            construction work of the state or the subdivision, and when acting within the terms of
            the person's trust, office, or employment;
      (b) a person engaged in construction or operation incidental to the construction and
            repair of irrigation and drainage ditches of regularly constituted irrigation districts,
            reclamation districts, and drainage districts or construction and repair relating to
            farming, dairying, agriculture, livestock or poultry raising, metal and coal mining,
            quarries, sand and gravel excavations, well drilling, as defined in Section 73-3-25,
            hauling to and from construction sites, and lumbering;
      (c) public utilities operating under the rules of the Public Service Commission on work
            incidental to their own business;
      (d) a sole owner of property engaged in building:
            (i) 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
                for the sole owner's noncommercial, nonpublic use, except that a person other than
                the property owner or a person described in Subsection (1)(e), who engages in
                building a residential structure must be licensed under this chapter if the person is
                otherwise required to be licensed under this chapter; 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:
                (A) works without compensation other than token compensation that is not
                    considered salary or wages; and
                (B) works under the direction of the property owner who engages in building the
                    structure; and
            (ii) as used in this Subsection (1)(e), "token compensation" means compensation paid
                by a sole owner of property exempted from licensure under Subsection (1)(d) to a
                person exempted from licensure under this Subsection (1)(e), that is:
                (A) minimal in value when compared with the fair market value of the services
                    provided by the person;
                (B) not related to the fair market value of the services provided by the person; and
                (C) is incidental to the providing of services by the person including paying for or
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     Enrolled Copy                                                                                    H.B. 483
                   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) (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 [$3,000,]
          $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) [must] shall be performed by a licensed electrical or plumbing contractor, if
                         the project involves an electrical or plumbing system; and
                   (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 project involves 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 [must] 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
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      H.B. 483                                                                                  Enrolled Copy
                    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) if the total value of the project is greater than [$1,000,] $3,000, the person shall
                    file with the division a one-time affirmation, subject to periodic reaffirmation
                    as established by division rule, that the person has:
                    (I) public liability insurance in coverage amounts and form established by
                         division rule; 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
            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 [replacement or ]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
                (B) a gas appliance or combustion system; and
            (ii) except as provided in Subsection (1)(e), installation for the first time of a fixture
                or an appliance is not included in the exemption provided under Subsection
                (1)(k)(i);
      (l) a person who ordinarily would be subject to the plumber licensure requirements
            under this chapter when installing or repairing a water conditioner or other water
            treatment apparatus if the conditioner or apparatus:
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      Enrolled Copy                                                                                     H.B. 483
          (i) meets the appropriate state construction codes or local plumbing standards; and
          (ii) is installed or repaired under the direction of a person authorized to do the work
              under an appropriate specialty contractor license;
      (m) a person who ordinarily would be subject to the electrician licensure requirements
          under this chapter when employed by:
          (i) railroad corporations, telephone corporations or their corporate affiliates, elevator
              contractors or constructors, or street railway systems; or
          (ii) public service corporations, rural electrification associations, or municipal
              utilities who generate, distribute, or sell electrical energy for light, heat, or power;
      (n) a person involved in minor electrical work incidental to a mechanical or service
          installation, including the outdoor installation of an above-ground, prebuilt hot tub;
      (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:
          (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; and
          (ii) a licensed contractor obtains the necessary building permits;
      (q) a delivery person when replacing any of the following existing equipment with a new
          gas appliance, provided there is an existing gas shutoff valve at the appliance:
          (i) gas range;
          (ii) gas dryer;
          (iii) outdoor gas barbeque; or
          (iv) outdoor gas patio heater;
      (r) a person performing maintenance on an elevator as defined in Section 58-55-102, if
          the maintenance is not related to the operating integrity of the elevator; and
      (s) an apprentice or helper of an elevator mechanic licensed under this chapter when
          working under the general direction of the licensed elevator mechanic.
  (2) A compliance agency as defined in Section 15A-1-202 that issues a building permit to a
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      H.B. 483                                                                                 Enrolled Copy
       person requesting a permit as a sole owner of property referred to in Subsection (1)(d)
       shall notify the division, in writing or through electronic transmission, of the issuance of
       the permit.
         Section 2. Section 58-55-503 is amended to read:
         58-55-503 . Penalty for unlawful conduct -- Citations.
   (1) As used in this section:
       (a) "Person" means, in reference to Subsection 58-55-504(2), an individual, and does not
            include a sole proprietorship, joint venture, corporation, limited liability company,
            association, or organization of any type.
       (b) "Qualifying violation" means a violation under:
            (i) Subsection 58-55-308(2);
            (ii) Subsections 58-55-501(1) through (3), (7), (9), (10), (12), (14), (16)(e), (18), or
                (20) through (28);
            (iii) Subsection 58-55-502(4)(a) or (11); or
            (iv) Subsection 58-55-504(2).
   (2) (a) A person who violates Subsection 58-55-501(1) through (7), (9), (10), (12), (14),
       (15), (16)(e), or (21) through (28), Subsection 58-55-308(2), or Subsection 58-55-504
       (2), or who fails to comply with a citation issued under this section after the citation
       is final, is guilty of a class A misdemeanor.
       (b) A person who violates the provisions of Subsection 58-55-501(8) may not be
            awarded and may not accept a contract for the performance of the work.
   (3) A person who violates Subsection 58-55-501(13) is guilty of:
       (a) an infraction; or
       (b) if the violator did so with the intent to deprive the person to whom money is to be
            paid of the money received, of theft under Section 76-6-404.
   (4) Grounds for immediate suspension of a licensee's license by the division and the
       commission include:
       (a) the issuance of a citation for violation of Subsection 58-55-308(2), Section 58-55-501,
            or Subsection 58-55-504(2); and
       (b) the failure by a licensee to make application to, report to, or notify the division with
            respect to any matter for which application, notification, or reporting is required
            under this chapter or rules adopted under this chapter, including:
            (i) applying to the division for a new license to engage in a new specialty
                classification or to do business under a new form of organization or business
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      Enrolled Copy                                                                                     H.B. 483
              structure;
          (ii) filing a current financial statement with the division; and
          (iii) notifying the division concerning loss of insurance coverage or change in
              qualifier.
  (5) (a) (i) If upon inspection or investigation, the division concludes that a person has
      committed a qualifying violation or violated any rule or order issued with respect
      to a qualifying violation, and that disciplinary action is appropriate, the director or
      the director's designee from within the division shall:
              (A) promptly issue a citation to the person according to this chapter and any
                   pertinent rules;
              (B) attempt to negotiate a stipulated settlement; or
              (C) notify the person to appear before an adjudicative proceeding conducted under
                   Title 63G, Chapter 4, Administrative Procedures Act.
          (ii) A person who committed a qualifying violation, as evidenced by an uncontested
              citation, a stipulated settlement, or by a finding of violation in an adjudicative
              proceeding, may be assessed a fine and may, in addition to or in lieu of, be
              ordered to cease and desist from engaging in the qualifying violation.
          (iii) Except for a cease and desist order, the licensure sanctions cited in Section
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