58-55-502.  Unprofessional conduct.
     Unprofessional conduct includes:

(1)  failing to establish, maintain, or demonstrate financial responsibility while licensed as a contractor under this chapter;

Terms Used In Utah Code 58-55-502

  • alarm company: means a person engaged in the sale, installation, maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system, except as provided in Subsection (1)(b). See Utah Code 58-55-102
  • Alarm system: includes a battery-charged suspended-wire system or fence that is part of and interfaces with an alarm system for the purposes of detecting and deterring unauthorized intrusion or entry into or onto certain premises. See Utah Code 58-55-102
  • City: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5
  • Construction trade: means any trade or occupation involving:
(a) 
(i) construction, alteration, remodeling, repairing, wrecking or demolition, addition to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation or other project, development, or improvement to other than personal property; and
(ii) constructing, remodeling, or repairing a manufactured home or mobile home as defined in Section 15A-1-302; or
(b) installation or repair of a residential or commercial natural gas appliance or combustion system. See Utah Code 58-55-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Contractor: means any person who for compensation other than wages as an employee undertakes any work in the construction, plumbing, or electrical trade for which licensure is required under this chapter and includes:
    (i) a person who builds any structure on the person's own property for the purpose of sale or who builds any structure intended for public use on the person's own property;
    (ii) any person who represents that the person is a contractor, or will perform a service described in this Subsection (17)by advertising on a website or social media, or any other means;
    (iii) any person engaged as a maintenance person, other than an employee, who regularly engages in activities set forth under the definition of "construction trade";
    (iv) any person engaged in, or offering to engage in, any construction trade for which licensure is required under this chapter; or
    (v) a construction manager, construction consultant, construction assistant, or any other person who, for a fee:
    (A) performs or offers to perform construction consulting;
    (B) performs or offers to perform management of construction subcontractors;
    (C) provides or offers to provide a list of subcontractors or suppliers; or
    (D) provides or offers to provide management or counseling services on a construction project. See Utah Code 58-55-102
  • Employee: means an individual as defined by the division by rule giving consideration to the definition adopted by the Internal Revenue Service and the Department of Workforce Services. See Utah Code 58-55-102
  • Financial responsibility: means a demonstration of a current and expected future condition of financial solvency evidencing a reasonable expectation to the division and the board that an applicant or licensee can successfully engage in business as a contractor without jeopardy to the public health, safety, and welfare. See Utah Code 58-55-102
  • Individual: means a natural person. See Utah Code 58-55-102
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: means a natural person, sole proprietorship, joint venture, corporation, limited liability company, association, or organization of any type. See Utah Code 58-55-102
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Town: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5
  • Unincorporated entity: means an entity that is not:
    (a) an individual;
    (b) a corporation; or
    (c) publicly traded. See Utah Code 58-55-102
  • United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
  • (2)  disregarding or violating through gross negligence or a pattern of negligence:

    (a)  the building or construction laws of this state or any political subdivision;

    (b)  the safety and labor laws applicable to a project;

    (c)  any provision of the health laws applicable to a project;

    (d)  the workers’ compensation insurance laws of this state applicable to a project;

    (e)  the laws governing withholdings for employee state and federal income taxes, unemployment taxes, Social Security payroll taxes, or other required withholdings; or

    (f)  any reporting, notification, and filing laws of this state or the federal government;

    (3)  any willful, fraudulent, or deceitful act by a licensee, caused by a licensee, or at a licensee’s direction which causes material injury to another;

    (4)  contract violations that pose a threat or potential threat to the public health, safety, and welfare including:

    (a)  willful, deliberate, or grossly negligent departure from or disregard for plans or specifications, or abandonment or failure to complete a project without the consent of the owner or the owner’s duly authorized representative or the consent of any other person entitled to have the particular project completed in accordance with the plans, specifications, and contract terms;

    (b)  failure to deposit funds to the benefit of an employee as required under any written contractual obligation the licensee has to the employee;

    (c)  failure to maintain in full force and effect any health insurance benefit to an employee that was extended as a part of any written contractual obligation or representation by the licensee, unless the employee is given written notice of the licensee’s intent to cancel or reduce the insurance benefit at least 45 days before the effective date of the cancellation or reduction;

    (d)  failure to reimburse the Residence Lien Recovery Fund as required by Section 38-11-207;

    (e)  failure to provide, when applicable, the information required by Section 38-11-108; and

    (f)  willfully or deliberately misrepresenting or omitting a material fact in connection with an application to claim recovery from the Residence Lien Recovery Fund under Section 38-11-204;

    (5)  failing as an alarm company to notify the division of the cessation of performance of its qualifying agent, or failing to replace its qualifying agent as required under Section 58-55-304;

    (6)  failing as an alarm company agent to carry or display a copy of the licensee’s license as required under Section 58-55-311;

    (7)  failing to comply with operating standards established by rule in accordance with Section 58-55-308;

    (8)  an unincorporated entity licensed under this chapter having an individual who owns an interest in the unincorporated entity engage in a construction trade in Utah while not lawfully present in the United States;

    (9)  an unincorporated entity failing to provide the following for an individual who engages, or will engage, in a construction trade in Utah for the unincorporated entity:

    (a)  workers’ compensation coverage to the extent required by Title 34A, Chapter 2, Workers’ Compensation Act, and Title 34A, Chapter 3, Utah Occupational Disease Act; and

    (b)  unemployment compensation in accordance with Title 35A, Chapter 4, Employment Security Act, for an individual who owns, directly or indirectly, less than an 8% interest in the unincorporated entity, as defined by rule made by the division in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;

    (10)  the failure of an alarm company or alarm company agent to inform a potential customer, before the customer’s purchase of an alarm system or alarm service from the alarm company, of the policy of the county, city, or town within which the customer resides relating to priority levels for responding to an alarm signal transmitted by the alarm system that the alarm company provides the customer; or

    (11)  failing to continuously maintain insurance and registration as required under Subsection 58-55-302(2).

    Amended by Chapter 415, 2022 General Session