All Roll Calls
Yes: 139 • No: 3
UtahH.B. 402026 General SessionHouseWALLET
Utah Construction Trades Licensing Act Amendments
Sponsored By: Thomas W. Peterson (Republican)
Signed by Governor
BusinessConstructionLabor and EmploymentOccupational and Professional Licensing
Your PRIA Score
Score Hidden
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
26 provisions identified: 6 benefits, 4 costs, 16 mixed.
Stronger penalties and fast license suspensions
The division issues citations for rule violations and can fine you up to $1,000 for a first offense and up to $2,000 for a second. Ongoing violations can cost up to $2,000 per day, or up to $4,000 per day for certain higher-tier violations. You have 20 days to ask for a hearing, and a citation must be issued within one year of the violation. The division can investigate job sites, deny or revoke licenses, and collect unpaid fines in court. If the lien recovery fund pays on your violation, your license is suspended right away until you are reinstated, and you must repay the fund within 20 days. These citation rules apply beginning January 1, 2027.
Retention on construction jobs capped at 5%
The law caps retention to 5% of each payment and 5% of the total contract price. If the owner or original contractor uses a lower percent, lower retention must also apply to subcontractors. These rules apply to construction contracts entered on or after July 1, 1999. They do not apply to a construction lender.
One state license, fewer local hoops
To do construction work, you need the state license under this chapter. Local governments may only require a local business license at your main business location. They cannot add extra “doing business” requirements, other than contract prequalification or local fees. Starting January 1, 2027, these limits on extra state and local requirements are in force statewide.
State licensing rules for alarm companies
Beginning January 1, 2027, you need a state alarm company license to operate, plus a local business license where your main office is. Each company must list a qualifier who passes an exam and meets strict experience, fingerprinting, background check, and insurance rules. If a qualifier leaves, you must notify the division within 10 days and replace them within 60 days or your license is suspended. Alarm company licenses run for two years; terms may be adjusted to stagger renewals. Installing certain battery‑charged suspended‑wire perimeter systems on nonresidential property also requires licensure and must meet limits on voltage (12 V DC), fencing, height, and warning signs every 30 feet.
Stronger checks and penalties for contractors
The law lists unlawful acts like working without a license, working beyond scope, failing to supervise apprentices, or not paying workers or suppliers. Many license applicants must submit fingerprints, pay state and FBI fees, and pass background checks. Permit applicants must verify their contractor license, post the license number, and show workers’ comp coverage, unemployment contributions, required health insurance, and payroll tax withholding. Certain violations are class A misdemeanors and can bar you from contracts or acting as a qualifier. These rules start January 1, 2027.
Tougher licensing, training, and insurance rules
To get a contractor license, you must finish a 25-hour pre‑licensing course and a 5‑hour business and law course, pass required exams, and list owners. You must show workers’ compensation coverage or a waiver if you have no employees, carry public liability insurance, and register with the state tax and unemployment agencies and the IRS. You must prove financial responsibility by questionnaire or a bond; in some cases the bond can be 20% of your annual gross distributions. Each license term you must complete 6 hours of continuing education; HVAC contractors need at least 3 HVAC‑specific hours. The division may run an online CE registry and charge an admin fee. Building inspectors can use two full years of inspector work, including one year as a licensed combination inspector, to meet the experience rule. HVAC contractor applicants must also show two years of paid HVAC work and pass an exam.
Small jobs you can do unlicensed
You may do some construction work without a state license if the total project cost is under $7,000. This does not cover electrical, plumbing, gas, fire, HVAC, or radon work. Projects over $3,000 can trigger registration and insurance rules. Owners can do maintenance on their own property in allowed cases. Many exemptions require permits, inspections, a shutoff valve, or licensed supervision. These rules start January 1, 2027.
Clear limits and leeway on contractor scope
General engineering contractors cannot build structures meant to shelter people or property. They also cannot do plumbing, most electrical work beyond underground conduit, high‑voltage utility work without a journeyman lineman, or mechanical work. At the same time, a specialty contractor may do other trades that are truly incidental to their licensed trade without getting another license. These rules start January 1, 2027.
Faster pay and fair retention rules
Contractors must pay subs and suppliers by the later of 30 days after receiving funds or the day after payment is due. Late payments owe 1% interest per month and may include collection costs and attorney fees. Owners must release retention and accrued interest within 45 days after key project milestones, and contractors must pass each sub’s share within 10 days. Knowingly wrongful retention costs 2% per month plus attorney fees, but owners can hold more than the 5% cap to fix a breach and, after substantial completion, up to twice the fair market value of incomplete work. Retained funds on private jobs must earn interest for contractors and subs, and payers must clearly label which contract and items a payment covers.
New qualifier and owner reporting rules
Each contracting business must have a licensed qualifier with real technical and administrative authority. For electrical and plumbing, the qualifier must hold the required master license; elevator qualifiers need an elevator mechanic license plus three years’ experience. Qualifiers and any 10%+ owners must pass criminal background checks. If your qualifier leaves, you must notify the division in 10 days; your license stays valid for 60 days to add a replacement or it is suspended. Licenses run for two years and the division can stagger renewals; unincorporated firms with many small owners must file ownership reports every 30 days, and some entities face suspension if they do not renew after becoming unincorporated. A narrow renewal exception lets long, violation‑free firms list an active employee instead of a qualifier (10 years for most; 5 years for plumbing/electrical).
Statewide rules for alarm companies and agents
Starting January 1, 2027, the state sets clear unlawful and unprofessional conduct rules for alarm companies and agents. The division can investigate cases but will not proceed if there is no material risk to health or safety. Certain violations or failure to follow a final citation are class A misdemeanors. An individual who owns an alarm system, or that owner’s employee, may act as an alarm agent without an agent license. Alarm companies must prove they were licensed at contract signing and when the claim arose to sue for payment. A new Alarm System Security and Licensing Board helps set rules, review exams, and hear cases.
Who pays for new gas lines
A qualifying installer pays to install natural gas facilities. The gas company pays the engineering, inspection, mapping, and locating costs. If the gas company requires larger facilities than the minimum system, it pays the extra cost. The gas company inspects and tests the work and does not have to take ownership or supply gas until the installation passes.
HOAs can’t block your EV charger
A homeowners association cannot ban you from installing or using an EV charging system in your assigned parking space. The same rule applies to a limited common area space that is for your exclusive use.
Clearer trade and electrician license rules
The law updates who counts as apprentice, journeyman, and master for electricians and adds a journeyman lineman that requires a 7,000-hour apprenticeship. It also clarifies trade terms like fire sprinkler system, commercial construction project, crane, elevator, natural gas main, and more. These definitions make clear what work needs which license and training.
Stronger privacy for licensing records
Financial records you submit to show financial responsibility, like credit reports or financial statements, are protected and not open to the public or civil discovery. The commission may discuss them in public unless you ask to close the meeting under Utah’s open meeting law. Beginning January 1, 2027, parts of records that include your Social Security number or employer tax ID are private.
Local bans on some alarm fences barred
Cities and counties cannot ban or add extra rules on battery-charged suspended-wire perimeter systems on non-residential property. This protection applies only when a licensed alarm company or licensed agent installs, repairs, maintains, or replaces the system and it meets state safety standards. Local governments may still regulate nonelectric walls or fences and related signs.
Public online list of licensed contractors
The state runs a public internet registry of licensed contractors. Contractors can give, change, or opt out of listing contact information; if they do nothing, only public contact info shows. The division may charge a fee to run the registry and may link it with the State Construction Registry.
Fair payment and lien rules on projects
On multi‑building jobs, each building is treated separately for payments. If part of a building is occupied, the owner must pay the contractor in proportion to that value and release any held amounts as the law provides. Owners can defend against some liens if they paid the contractor, the payment was properly designated and passed on, and the subcontractor or supplier did not require a designation. Contracts cannot waive the statute’s retention protections. A contractor cannot sue for payment unless it was properly licensed at contract signing and when the claim arose. These rules start January 1, 2027.
HOA rules for EV chargers and sales
An association may require an application and that a licensed electrical contractor install the charger. If the charger is in a common area, the owner may have to reimburse any actual increase in the association’s insurance premium. The owner pays all installation, metering, electricity, repairs, and any damage costs. The owner must tell a buyer about the charger and their duties. Unless the buyer accepts it and its responsibilities, the owner must remove the charger and restore the area before sale. These rules start January 1, 2027.
New training and fees for electricians and plumbers
The state sets clear paths to become a master or journeyman electrician or plumber through education, experience, or approved apprenticeships. Electricians must complete 16 hours of continuing education every two years; plumbers must complete 12 hours. The division may charge small administrative fees to run course approvals and tracking. New Electrician and Plumber Education Funds add up to a $5 surcharge on license transactions to pay for training; excess over $100,000 goes to the General Fund. These rules start January 1, 2027.
Pay stub and record rules for crews
When a licensed contractor pays a worker, the contractor must give a pay statement that day. It must list the worker’s name, base pay rate, pay period dates, hours worked if hourly, each tax and court withholding, and the total paid. Contractors must keep copies for at least three years and give them to the state if asked. These rules start January 1, 2027.
Alarm agents: checks and temp permits
Starting January 1, 2027, alarm agents must apply, give fingerprints, and pass criminal background checks. Agents must carry a copy of their license while working and show it when asked by officials or customers. The division may issue a temporary permit for call‑center or office roles after receiving a state background check, if the employer limits duties in writing. A temporary permit ends after 90 days, when you leave the job, or when the full license is issued or denied.
Stronger rules for specialty trade workers
Workers on gas appliances must be trained and certified; employers must make sure they are qualified. Crane operators on commercial jobs must hold accredited certification. Fire sprinkler contractors need a qualified person who meets training and exam standards. Elevator mechanics need experience, an exam, or an approved apprenticeship; the division may issue temporary mechanic licenses when contractors cannot find licensed workers, and mechanics must complete eight hours of continuing education every two years. The division sets extra requirements for trade instructors and may accept out‑of‑state journeyman lineman experience by rule. These rules start January 1, 2027.
New $1 fee funds online codes
Beginning January 1, 2027, the division adds a $1 surcharge to each initial license application. Renewals and reinstatements also pay a $1 surcharge. The money funds licensee access to an online library of building codes and standards, and these funds do not lapse at year‑end.
Alarm board subsection repealed in 2027
The law repeals the cited Alarm System and Security Licensing Advisory Board subsection on July 1, 2027.
New boards oversee construction licensing
The law creates a Construction Services Commission to make rules, approve some fees, hold hearings, and impose sanctions with the director’s concurrence. Members are appointed to staggered four‑year terms and the commission meets at least monthly. A new Electricians and Plumbers Licensing Board is also created with union and non‑union members. The commission can set scope‑of‑practice and operating standards based on safety, training, and financial responsibility. These rules start January 1, 2027.
Free Policy Watch
You just read the policy. Now see what it costs you.
Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.
Pick a topic to get started
Sponsors & Cosponsors
Sponsor
Thomas W. Peterson
Republican • House
Cosponsors
Evan J. Vickers
Republican • Senate
Roll Call Votes
Senate vote • 2/12/2026
Senate/ passed 3rd reading
Yes: 24 • No: 1
Senate vote • 2/11/2026
Senate/ passed 2nd reading
Yes: 28 • No: 1
House vote • 2/5/2026
Senate Comm - Favorable Recommendation
Yes: 5 • No: 0
House vote • 1/30/2026
House/ passed 3rd reading
Yes: 70 • No: 1
House vote • 1/30/2026
House/ uncircled
Yes: 0 • No: 0
House vote • 1/30/2026
House/ floor amendment failed
Yes: 0 • No: 0
House vote • 1/27/2026
House/ circled
Yes: 0 • No: 0
House vote • 1/27/2026
House/ circled
Yes: 0 • No: 0
House vote • 1/27/2026
House/ substituted
Yes: 0 • No: 0
House vote • 1/27/2026
House/ uncircled
Yes: 0 • No: 0
House vote • 1/22/2026
House Comm - Favorable Recommendation
Yes: 12 • No: 0
Actions Timeline
Governor Signed
3/17/2026House/ to Governor
3/12/2026HouseHouse/ received enrolled bill from Printing
3/12/2026HouseHouse/ enrolled bill to Printing
3/5/2026HouseEnrolled Bill Returned to House or Senate
3/5/2026Draft of Enrolled Bill Prepared
2/17/2026Bill Received from House for Enrolling
2/17/2026House/ signed by Speaker/ sent for enrolling
2/17/2026HouseHouse/ received from Senate
2/17/2026HouseSenate/ to House
2/12/2026SenateSenate/ signed by President/ returned to House
2/12/2026SenateSenate/ passed 3rd reading
2/12/2026SenateSenate/ 3rd reading
2/12/2026SenateSenate/ passed 2nd reading
2/11/2026SenateSenate/ 2nd reading
2/11/2026SenateSenate/ placed on 2nd Reading Calendar
2/6/2026SenateSenate/ committee report favorable
2/6/2026SenateSenate Comm - Favorable Recommendation
2/5/2026Senate/ to standing committee
2/3/2026SenateSenate/ 1st reading (Introduced)
2/2/2026SenateSenate/ received from House
1/30/2026SenateHouse/ to Senate
1/30/2026HouseHouse/ passed 3rd reading
1/30/2026HouseHouse/ floor amendment failed
1/30/2026HouseHouse/ uncircled
1/30/2026House
Bill Text
Enrolled
3/5/2026
Substitute #1
1/27/2026
Introduced
12/18/2025
Related Bills
Take It Personal
Get Your Personalized Policy View
Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in