DAR File No. 28164

Commerce, Occupational and Professional Licensing

R156-55a-503

Administrative Penalties

NOTICE OF PROPOSED RULE

DAR File No.: 28164
Filed: 08/18/2005, 03:04
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Construction Services Commission and the Division are placing the fine schedule applicable to licensees and unlicensed persons under Title 58, Chapter 55, in the rule. Currently, the existing fine schedule applicable to licensees and unlicensed persons under Title 58, Chapter 55, is a Division policy. The current existing fine schedule for administrative fines has not been changed in approximately 13 years. The Construction Services Commission considers the existing fines to be outdated and ineffective as a tool to enforce the Construction Trades Licensing Act; therefore the fine schedule that is being added to this rule is being updated and the fines increased.

Summary of the rule or change:

Section R156-55a-503 regarding administrative penalties is being added to the Utah Construction Trades Licensing Act rule. This new section outlines the fines applicable to licensees and unlicensed persons under Title 58, Chapter 55, who violate various subsections of that statute and the amount of the fine for first, second, and third offenses. The section also establishes guidelines pertaining to the issuance of citations and the fines associated with those citations. The fines in the Division's current existing fine schedule range from $200 to $1,200. The increased fines being proposed in this section range from $500 to $2,000.

State statutory or constitutional authorization for this rule:

Section 58-55-101 and Subsections 58-1-106(1)(a), 58-1-202(1)(a), 58-55-308(1), 58-55-102(35) and 58-55-501(21)

Anticipated cost or savings to:

the state budget:

As a result of this proposed rule and the fine schedule amounts being increased, the state budget would realize a positive fiscal impact from this section. It is estimated that the increase in fines would bring in an additional $196,587 in revenue each year to the state. The Division will incur minimal costs, approximately $75, to reprint the rule once the proposed amendment is made effective. Any costs incurred will be absorbed in the Division's current budget.

local governments:

The proposed amendment will not affect local governments; therefore, no costs or savings are anticipated. The proposed rule amendment only affects persons who violate the specified sections of Title 58, Chapter 55, the Utah Construction Trades Licensing Act as outlined in the fine schedule.

other persons:

The proposed amendment will affect persons (both licensed and unlicensed) who violate the specified sections of Title 58, Chapter 55, as outlined in the fine schedule. Using figures from 2002 to 2004, the Division wrote an average of 970 administrative citations per year that pertained to the Construction Trades Licensing Act. The amount collected per citation averaged just over $202. It is estimated that in time the new fine schedule being proposed would increase this amount to $500 per citation. The proposed fine schedule would also have an impact on fines collected through stipulated or written agreements; but it is expected this impact would be minimal.

Compliance costs for affected persons:

The Division is not able to determine an exact compliance cost to persons affected by the proposed amendment as it would depend on what statute violation they had committed and if the violation was a first, second, or third offense. However, it is estimated that the average increase in cost per citation issued would be $298 for persons who violated the specified sections of Title 58, Chapter 55.

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

This rule amendment adopts a fee schedule in accordance with Section 58-55-503. Although still within the ranges permitted by Section 58-55-503, this fine schedule increases the fine amounts previously applied by the Division of Occupational and Professional Licensing to violators of the Utah Construction Trades Licensing Act. Thus, violators of the Act will be paying approximately $298 more per citation than they did before. Other than this fiscal impact to the regulated industry, no additional fiscal impact to businesses if anticipated. Jason P. Perry, Acting Executive Director

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

Direct questions regarding this rule to:

Dennis Meservy at the above address, by phone at 801-530-6375, by FAX at 801-530-6511, or by Internet E-mail at dmeservy@utah.gov

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:

10/17/2005

Interested persons may attend a public hearing regarding this rule:

9/28/2005 at 9:00 AM, 160 East 300 South - Conference Room 4A (4th floor) - Salt Lake City, Utah

This rule may become effective on:

10/18/2005

Authorized by:

J. Craig Jackson, Director

RULE TEXT

R156. Commerce, Occupational and Professional Licensing.

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

R156-55a-503. Administrative Penalties.

(1) In accordance with Subsection 58-55-503, the following fine schedule shall apply to citations issued under Title 58, Chapter 55:

TABLE
FINE SCHEDULE

FIRST OFFENSE



                    All Licenses Except        Electrical or

Violation           Electrical or Plumbing     Plumbing

58-55-308(2)             $  500.00                 N/A

58-55-501(1)             $  500.00              $  500.00

58-55-501(2)             $  500.00              $  800.00

58-55-501(3)             $  800.00              $1,000.00

58-55-501(9)             $  500.00              $  500.00

58-55-501(10)            $  800.00              $1,000.00

58-55-501(12)               N/A                 $  500.00

58-55-501(14)            $  500.00                 N/A

58-55-501(19)            $  500.00                 N/A

58-55-501(21)            $  500.00              $  500.00



SECOND OFFENSE



58-55-308(2)             $1,000.00                 N/A

58-55-501(1)             $1,000.00              $1,500.00

58-55-501(2)             $1,000.00              $1,500.00

58-55-501(3)             $1,600.00              $2,000.00

58-55-501(9)             $1,000.00              $1,000.00

58-55-501(10)            $1,600.00              $2,000.00

58-55-501(12)               N/A                 $1,000.00

58-55-501(14)            $1,000.00                 N/A

58-55-501(19)            $1,000.00                 N/A

58-55-501(21)            $1,000.00              $1,000.00



THIRD OFFENSE



Double the amount for a second offense

(2) Citations shall not be issued for third offenses, except in extraordinary circumstances approved by the investigative supervisor.

(3) If multiple offenses are cited on the same citation, the fine shall be determined by evaluating the most serious offense.

(4) An investigative supervisor may authorize a deviation from the fine schedule based upon the aggravating or mitigating circumstances.

(5) The presiding officer for a contested citation shall have the discretion, after a review of the aggravating and mitigating circumstances, to increase or decrease the fine amount imposed by an investigator based upon the evidence reviewed.

KEY: contractors, occupational licensing, licensing

[July 18, ]2005

Notice of Continuation January 15, 2002

58-1-106(1)(a)

58-1-202(1)(a)

58-55-101

58-55-308(1)

58-55-102(35)

58-55-501(21)

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Dennis Meservy at the above address, by phone at 801-530-6375, by FAX at 801-530-6511, or by Internet E-mail at dmeservy@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.