Bill Summary – FastDemocracy

Enrolled Copy                                                                                   S.B. 153
                    BUSINESS PAYROLL PRACTICES AMENDMENTS
                                          2020 GENERAL SESSION
                                               STATE OF UTAH
                                     Chief Sponsor: Karen Mayne
                                 House Sponsor: James A. Dunnigan
 6
 LONG TITLE
 General Description:
         This bill amends provisions of the Utah Construction Trades Licensing Act regarding
 unlawful conduct.
 Highlighted Provisions:
         This bill:
         < amends provisions of the Utah Construction Trades Licensing Act regarding
 unlawful conduct.
 Money Appropriated in this Bill:
         None
 Other Special Clauses:
         None
 Utah Code Sections Affected:
 AMENDS:
         58-55-503, as last amended by Laws of Utah 2018, Chapter 318
22
 Be it enacted by the Legislature of the state of Utah:
         Section 1. Section 58-55-503 is amended to read:
         58-55-503. Penalty for unlawful conduct -- Citations.
         (1) (a) (i) A person who violates Subsection 58-55-308(2), Subsection 58-55-501(1),
 (2), (3), (4), (5), (6), (7), (9), (10), (12), (14), (15), (16)(e), (22), (23), (24), (25), (26), (27),
 (28), or (29), or Subsection 58-55-504(2), or who fails to comply with a citation issued under
 this section after it is final, is guilty of a class A misdemeanor.
       S.B. 153                                                                           Enrolled Copy
         (ii) As used in this section in reference to Subsection 58-55-504(2), "person" means an
 individual and does not include a sole proprietorship, joint venture, corporation, limited
 liability company, association, or organization of any type.
         (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.
         (2) A person who violates the provisions of Subsection 58-55-501(13) is guilty of an
 infraction unless the violator did so with the intent to deprive the person to whom money is to
 be paid of the money received, in which case the violator is guilty of theft, as classified in
 Section 76-6-412.
         (3) 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 structure;
         (ii) filing a current financial statement with the division; and
         (iii) notifying the division concerning loss of insurance coverage or change in qualifier.
         (4) (a) (i) If upon inspection or investigation, the division concludes that a person has
 violated the provisions of Subsection 58-55-308(2), Subsection 58-55-501(1), (2), (3), (9),
 (10), (12), (14), (16)(e), (19), (21), (22), (23), (24), (25), (26), (27), (28), or (29), Subsection
 58-55-504(2), or any rule or order issued with respect to these subsections, and that disciplinary
 action is appropriate, the director or the director's designee from within the division shall
 promptly issue a citation to the person according to this chapter and any pertinent rules, attempt
 to negotiate a stipulated settlement, or notify the person to appear before an adjudicative
 proceeding conducted under Title 63G, Chapter 4, Administrative Procedures Act.
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       Enrolled Copy                                                                               S.B. 153
         [(i)] (ii) A person who is in violation of the provisions of Subsection 58-55-308(2),
 Subsection 58-55-501(1), (2), (3), (9), (10), (12), (14), (16)(e), (19), (21), (22), (23), (24), (25),
 (26), (27), (28), or (29), or Subsection 58-55-504(2), as evidenced by an uncontested citation, a
 stipulated settlement, or by a finding of violation in an adjudicative proceeding, may be
 assessed a fine pursuant to this Subsection (4) and may, in addition to or in lieu of, be ordered
 to cease and desist from violating Subsection 58-55-308(2), Subsection 58-55-501(1), (2), (3),
 (9), (10), (12), (14), (16)(e), (19), (21), (24), (25), (26), (27), (28), or (29), or Subsection
 58-55-504(2).
         [(ii)] (iii) Except for a cease and desist order, the licensure sanctions cited in Section
 58-55-401 may not be assessed through a citation.
         (b) (i) A citation shall be in writing and describe with particularity the nature of the
 violation, including a reference to the provision of the chapter, rule, or order alleged to have
 been violated.
         (ii) A citation shall clearly state that the recipient must notify the division in writing
 within 20 calendar days of service of the citation if the recipient wishes to contest the citation
 at a hearing conducted under Title 63G, Chapter 4, Administrative Procedures Act.
         (iii) A citation shall clearly explain the consequences of failure to timely contest the
 citation or to make payment of any fines assessed by the citation within the time specified in
 the citation.
         (c) A citation issued under this section, or a copy of a citation, may be served upon a
 person upon whom a summons may be served:
         (i) in accordance with the Utah Rules of Civil Procedure;
         (ii) personally or upon the person's agent by a division investigator or by a person
 specially designated by the director; or
         (iii) by mail.
         (d) (i) If within 20 calendar days after the day on which a citation is served, the person
 to whom the citation was issued fails to request a hearing to contest the citation, the citation
 becomes the final order of the division and is not subject to further agency review.
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        S.B. 153                                                                            Enrolled Copy
         (ii) The period to contest a citation may be extended by the division for cause.
         (e) The division may refuse to issue or renew, suspend, revoke, or place on probation
 the license of a licensee who fails to comply with a citation after [it] the citation becomes final.
         (f) The failure of an applicant for licensure to comply with a citation after [it] the
 citation becomes final is a ground for denial of license.
         (g) A citation may not be issued under this section after the expiration of six months
 following the occurrence of a violation.
         (h) (i) Except as provided in [Subsection] Subsections (4)(h)(ii) and (5), the director or
 the director's designee shall assess a fine in accordance with the following:
         [(i)] (A) for a first offense handled pursuant to Subsection (4)(a), a fine of up to
 $1,000;
         [(ii)] (B) for a second offense handled pursuant to Subsection (4)(a), a fine of up to
 $2,000; and
         [(iii)] (C) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of
 up to $2,000 for each day of continued offense.
         (ii) Except as provided in Subsection (5), if a person violates Subsection
 58-55-501(16)(e) or (29), the director or the director's designee shall assess a fine in
 accordance with the following:
         (A) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $2,000;
         (B) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $4,000;
 and
         (C) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to
 $4,000 for each day of continued offense.
         (i) (i) For purposes of issuing a final order under this section and assessing a fine under
 Subsection (4)(h), an offense constitutes a second or subsequent offense if:
         (A) the division previously issued a final order determining that a person committed a
 first or second offense in violation of Subsection 58-55-308(2), Subsection 58-55-501(1), (2),
 (3), (9), (10), (12), (14), (16)(e), (19), (24), (25), (26), (27), (28), or (29), or Subsection
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        Enrolled Copy                                                                             S.B. 153
 58-55-504(2); or
        (B) (I) the division initiated an action for a first or second offense;
        (II) a final order has not been issued by the division in the action initiated under
 Subsection (4)(i)(i)(B)(I);
        (III) the division determines during an investigation that occurred after the initiation of
 the action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent
 violation of the provisions of Subsection 58-55-308(2), Subsection 58-55-501(1), (2), (3), (9),
 (10), (12), (14), (16)(e), (19), (24), (25), (26), (27), (28), or (29), or Subsection 58-55-504(2);
 and
        (IV) after determining that the person committed a second or subsequent offense under
 Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under
 Subsection (4)(i)(i)(B)(I).
        (ii) In issuing a final order for a second or subsequent offense under Subsection
 (4)(i)(i), the division shall comply with the requirements of this section.
        (j) In addition to any other licensure sanction or fine imposed under this section, the
 division shall revoke the license of a licensee that violates Subsection 58-55-501(24) or (25)
 two or more times within a 12-month period, unless, with respect to a violation of Subsection
 58-55-501(24), the licensee can demonstrate that the licensee successfully verified the federal
 legal working status of the individual who was the subject of the violation using a status
 verification system, as defined in Section 13-47-102.
        (k) For purposes of this Subsection (4), a violation of Subsection 58-55-501(24) or (25)
 for each individual is considered a separate violation.
        (5) If a person violates Section 58-55-501, the division may not treat the violation as a
 subsequent violation of a previous violation if the violation occurs five years or more after the
 day on which the person committed the previous violation.
        (6) If, after an investigation, the division determines that a person has committed
 multiple of the same type of violation of Section 58-55-501, the division may treat each
 violation as a separate violation of Section 58-55-501 and apply a penalty under this section to
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        S.B. 153                                                                        Enrolled Copy
 each violation.
         (7) (a) A penalty imposed by the director under Subsection (4)(h) shall be deposited
 into the Commerce Service Account created by Section 13-1-2.
         (b) A penalty that is not paid may be collected by the director by either referring the
 matter to a collection agency or bringing an action in the district court of the county in which
 the person against whom the penalty is imposed resides or in the county where the office of the
 director is located.
         (c) A county attorney or the attorney general of the state shall provide legal assistance
 and advice to the director in an action to collect a penalty.
         (d) In an action brought to collect a penalty, the court shall award reasonable attorney
 fees and costs to the prevailing party.
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Statutes affected: 
Introduced: 58-55-503
Amended: 58-55-503
Enrolled: 58-55-503