No. 39461 (Change in Proposed Rule): Rule R156-55a. Utah Construction Trades Licensing Act Rule

DAR File No.: 39461
Filed: 09/29/2015 12:38:18 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The division and Construction Services Commission filed proposed amendments in DAR No. 39461 which were published in the Utah State Bulletin and a public rule hearing was held on 07/29/2015. As a result of public comments received at the hearing, the commission has decided to delay considering changes to the insurance requirements originally proposed under Sections R156-55a-302d and R156-55a-501 and to move forward with the remaining proposed amendments in that original filing. The purpose of this change in proposed rule filing is to: 1) delete previously proposed changes to clarify the liability insurance requirement for contractors; and 2) delete previously proposed changes to add failure to comply with certain insurance requirements to unprofessional conduct for contractors.

Summary of the rule or change:

In Subsection R156-55a-302d(2), the change deletes the previously proposed change to clarify that a public liability insurance policy shall not exclude coverage for any type of work that a contractor performs. In Subsections R156-55a-501(2) and (3), the change deletes the previously proposed change to add failure to comply with certain insurance requirements to the definition of unprofessional conduct for contractors. (DAR NOTE: This change in proposed rule has been filed to make additional changes to a proposed amendment that was published in the July 15, 2015, issue of the Utah State Bulletin, on page 21. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike-out indicates text that has been deleted. You must view the change in proposed rule and the proposed amendment together to understand all of the changes that will be enforceable should the agency make this rule effective.)

State statutory or constitutional authorization for this rule:

• Subsection 58-1-202(1)(a)
• Subsection 58-1-106(1)(a)
• Subsection 58-55-308(1)(a)
• Section 58-55-101
• Subsection 58-55-102(39)(a)

Anticipated cost or savings to:

the state budget:

No other costs or savings are anticipated beyond those previously identified in the original rule filing under DAR No. 39461.

local governments:

No other costs or savings are anticipated beyond those previously identified in the original rule filing under DAR No. 39461.

small businesses:

The change in insurance requirements will not result in any impact because the deletion of previously proposed changes will not result in a change from the current, existing rule.

persons other than small businesses, businesses, or local governmental entities:

The change in insurance requirements will not result in any impact because the deletion of previously proposed changes will not result in a change from the current, existing rule.

Compliance costs for affected persons:

The change in insurance requirements will not result in any impact because the deletion of previously proposed changes will not result in a change from the current, existing rule.

Comments by the department head on the fiscal impact the rule may have on businesses:

As stated in the rule analysis, this filing responds to public comment regarding an earlier filing that modified insurance requirements applicable to persons who operate in the construction trades. This filing deletes language that was introduced in the prior filing. No fiscal impact to businesses is anticipated.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Occupational and Professional Licensing
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Dan Jones at the above address, by phone at 801-530-6720, by FAX at 801-530-6511, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/16/2015

This rule may become effective on:

11/23/2015

Authorized by:

Mark Steinagel, Director

RULE TEXT

R156. Commerce, Occupational and Professional Licensing.

R156-55a. Utah Construction Trades Licensing Act Rule.

 

. . . . . . .

 

R156-55a-302d. Qualifications for Licensure - Proof of Insurance and Registrations.

[(1) ]In accordance with the provisions of Subsection 58-55-302(2)(b), an applicant who is approved for licensure shall submit proof of public liability insurance in coverage amounts of at least $100,000 for each incident and $300,000 in total by means of a certificate of insurance naming the Division as a certificate holder.[

(2) The public liability insurance coverage required under Subsection 58-55-302(2)(b), and Subsection (1) above, shall not exempt from coverage any area of construction within the scope of the work performed.]

 

. . . . . . .

 

R156-55a-501. Unprofessional Conduct.

"Unprofessional conduct" includes:

(1) failing to notify the Division with respect to any matter for which notification is required under this rule or Title 58, Chapter 55, the Construction Trades Licensing Act, including a change in qualifier. Such failure shall be considered by the Division and the Commission as grounds for immediate suspension of the contractors license;

(2) failing to continuously maintain insurance and registration as required by Subsection 58-55-302(2) , in coverage amounts and form as implemented by this chapter[and Section R156-55a-302d]; and

(3) failing, [within 30 days of a]upon request from the Division [or an upper tier contractor, ]to provide[:

(a) ] proof of insurance coverage within 30 days[;

(b) copy of the licensee's public insurance policy; or

(c) any exclusions included in the licensee's public insurance policy].

 

KEY: contractors, occupational licensing, licensing

Date of Enactment or Last Substantive Amendment: 2015

Notice of Continuation: October 4, 2011

Authorizing, and Implemented or Interpreted Law: 58-1-106(1)(a); 58-1-202(1)(a); 58-55-101; 58-55-308(1)(a); 58-55-102(39)(a)