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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
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Bill Overview
Analyzed Economic Effects
49 provisions identified: 11 benefits, 20 costs, 18 mixed.
Contractors risk losing licenses after violations
The division can deny issuance or renewal, suspend, restrict, or revoke licenses when a person fails licensing qualifications. It can also issue reprimands or stop-work orders and revoke access to the Residence Lien Recovery Fund. An unincorporated contractor business can face action for unlawful or unprofessional conduct by an owner or qualifier. Two or more violations of either specified provision, 58-55-601(19) or (20), within 12 months require license revocation. For subsection (19), the division may allow an exception when the licensee proves federal work status was checked through the required system.
Disciplined contractors face licensing delays and costs
Beginning January 1, 2027, the division must deny applications tied to suspensions or revocations less than two years earlier. This covers applicants' own discipline and specified connections through people in control positions. A five-year denial rule covers listed former owners, directors, or officers of an unincorporated entity whose license was revoked. Specified cases involving discipline at least two years earlier require commission review before approval. Reinstatement requires paying division fines and resolving outstanding citations or discipline. Contractor applicants must also show financial responsibility using titled assets and pay any required reimbursement under the residential lien recovery law.
License exemptions for small construction projects
Beginning January 1, 2027, the law allows listed construction work without a trade license, including qualifying maintenance, repairs, and student work. The small-project exemption covers projects under $7,000, but excludes electrical, plumbing, gas, water-based fire protection, heating and cooling, radon, and soil-depressurization work. Projects over $3,000 using this exemption require business registration, liability insurance documents, and workers' compensation documents when applicable. Qualifying sole owners building noncommercial, nonpublic homes are limited to one residential structure yearly and three in five years. Volunteers must work under the owner's direction for no more than token pay; approved student projects require permits and inspections.
Specialty contractors can include related trades
Beginning January 1, 2027, specialty contractors may perform work outside their licensed trade when it is incidental to that trade. Specialty contractors licensed under Part 2 may also sign contracts involving two or more construction trades. Any added trade must be incidental to the contractor's licensed trade.
Tradespeople must meet license renewal rules
Beginning January 1, 2027, construction-trades license renewal and reinstatement require an application and the qualifications for that license. Individuals must apply in their own names, and covered electrician and plumber classes must complete required continuing education. Contractors must show financial responsibility and name a qualifier. They must also provide proof that the qualifier passed required exams and completed required continuing education.
Alarm companies face stricter entry checks
Alarm company applicants must apply, pay a fee, and have a qualifier who passes an exam. The qualifier needs 6,000 hours of alarm-business experience and 2,000 hours of management or administrative experience in alarms or construction. Covered leaders must provide fingerprints, pass background screening, disclose requested criminal history, and provide required court-competency and substance-use attestations. Companies need liability insurance, workers' compensation for employees, and required registrations; the division or board can require an applicant meeting. A suspension or revocation within two years requires denial, including specified links through people controlling another disciplined business; specified older cases require board review.
Alarm companies must maintain qualified managers
Alarm companies need an officer, owner, or manager with real authority as their license qualifier. They must report a qualifier's departure within 10 days; with notice, the license stays active for 60 days while replacing that person. Without a replacement by day 60, suspension is required; failure to report can also cause suspension. Licenses last two years, adjustable by up to one year to stagger renewals; renewal requires qualifier identification and exam proof. Reinstatement requires paying fines and resolving outstanding cases, license numbers must appear on covered permits and business documents, and confusing business names are barred.
Alarm violations bring fines and suspension
The law bans listed unlicensed alarm work, work beyond license limits, improper license use, fraudulent fingerprints, and temporary-permit violations. Specified violations or ignoring a final citation are class A misdemeanors, but the listed misrepresentation offense is excluded from that criminal rule. Maximum fines are $1,000 for a first offense, $2,000 for a second, and $2,000 daily for additional offenses. Citations must issue within one year of the reported violation; recipients have 20 calendar days to request hearings, extendable for cause. Violations more than five years apart generally cannot count as repeats, and specified conduct or qualifier-reporting failures can trigger immediate suspension.
Construction violations bring fines and charges
Construction fines reach $1,000 for a first offense, $2,000 for a second, and $2,000 daily for additional continued offenses. Specified tax-withholding and compliance violations instead allow $2,000, $4,000, and $4,000 daily. Citations must issue within one year of the reported violation; hearing requests generally have 20 calendar days, extendable for cause. After at least five years between qualifying violations, a new violation cannot count as a repeat. Specified violations or citation noncompliance are class A misdemeanors; unlicensed bidders cannot accept contracts or act as qualifiers, and unpaid project funds are an infraction or theft when intent to deprive is proven. Unpaid penalties can go to collections or court, where the winning party receives attorney fees and costs; collected fines enter the Commerce Service Account.
Contractor leaders face responsibility and replacement deadlines
Beginning January 1, 2027, contractors need a licensed qualifying owner, officer, or manager with real authority over the business. That authority covers technical and administrative decisions and employee management. A qualifying person in a control position shares liability with the business and can be held fully responsible for violations. Contractors must report that person's departure in writing within 10 days and replace them within 60 days after departure. Timely notice keeps the license active during the replacement period; missing a replacement requires suspension, and missing notice can also cause suspension.
Contractors face credential and insurance checks
Electrical and plumbing contractor qualifiers must hold master trade licenses; residential contractors may use the matching residential master license. Elevator contractor qualifiers need an elevator mechanic license and three years of mechanic experience. Before licensing, applicants must show liability insurance, workers' compensation coverage or a no-employee waiver, and required business, unemployment, and tax registrations. Qualifiers and individuals with at least a 10% voting interest must complete background checks, meet screening standards, and disclose criminal history. Unincorporated applicants must list every owner.
Contractors face licensing and disclosure rules
Beginning January 1, 2027, covered contractors and construction trades need state and local business licenses unless a statutory exemption applies. Covered work includes gas appliances, combustion systems, and paid construction consulting, management, listing, and project counseling. Each state license requires a separate application and fee; confusingly similar license names are barred. Contractors must put license numbers on permit applications, contracts, agreements, and bids that require a license. License terms are two years, but the division may adjust them by up to one year to stagger renewals.
Contractors must show ongoing financial responsibility
Contractors must show financial responsibility before license issuance, renewal, or reinstatement, using a certified questionnaire or a required bond. They must maintain it throughout the license period. For unincorporated businesses, the division reviews each owner's finances and may audit them or obtain credit reports. A failed review can block trade work or require separation from an owner within 10 days. The division may require a bond, including one equal to 20% of annual gross owner distributions, to cover unpaid obligations.
Unincorporated contractors face ownership reports and fees
Beginning January 1, 2027, covered unincorporated contractors with more than five working owners each holding under 8% must report every 30 days. Reports start 30 days after licensing; covered entities with five or fewer such owners report at renewal. Reports identify ownership changes, all owners, and management or operating personnel; fees apply as required, and the division may audit compliance. Entities supplying an owner to work for a licensed contractor must first file an ownership list with required identifying details. After a licensee becomes or transfers its license to a reporting-covered unincorporated entity, the division may suspend it after 60 days. That suspension rule cannot apply if the division completes license renewal before the 60 days end.
Unlicensed businesses cannot sue for payment
Contractors and alarm companies cannot sue to collect payment for work requiring a license without proving they held that license. They must have held it both when entering the contract and when the legal claim arose. Lacking the license at either point bars the court action.
Plumbers gain several license qualification routes
Beginning January 1, 2027, plumber applicants must apply, pay a fee, and pass required exams; apprentices must name a proposed supervisor. Master plumbers need two years of supervisory journeyman work, or an approved associate degree plus one year of that work. Residential masters need two years of supervisory residential journeyman work. Journeymen can qualify through four years of approved apprentice training or eight years of approved full-time experience. Residential journeymen can use three years of approved apprentice training or six years of qualifying maintenance or repair work involving substantial plumbing. These license levels also allow commission-established expedited routes.
Alarm businesses face licenses and background checks
Beginning January 1, 2027, covered alarm companies and agents need licenses before working, unless a statutory exemption applies. The new act covers specified battery-charged suspended-wire alarm systems on nonresidential property. Companies also need a business license where their principal place of business is located. Covered applicants must submit fingerprints, consent to state and federal checks, and pay the related fees. Governments generally cannot add business requirements, but state contract qualification procedures and local business fees remain allowed.
Construction payments gain deadlines and interest
For multi-building projects, each building counts separately for payment; partial occupancy requires owner payment based on the occupied part's value. Retained money must be released under the law's retention rules. Contractors receiving funds for billed work must pay subcontractors and suppliers proportionally, unless the contract changes that allocation. Payment is due by the later of 30 calendar days after receipt or the day after payment is due. These rules also apply downstream, with 1% monthly late interest, reasonable collection costs, and attorney fees unless a contract agreement or reasonable cause provides an exception.
Contractor licenses define allowed and restricted work
Beginning January 1, 2027, residential and small commercial contractors cover homes up to four units and commercial buildings up to three above-ground stories and 20,000 square feet. Listed plumbing, electrical, mechanical, elevator, manufactured-housing, and high-risk work is excluded, with exceptions for employed licensed tradespeople. General building and residential contractors have exceptions for residential mechanical work performed by employed plumbers or electricians with the required licenses. General engineering contractors cannot perform or supervise specified building, plumbing, mechanical, or electrical work beyond underground utility conduit or electrical utilities. They cannot do specialized work beyond their skills, and high-voltage utility work requires a journeyman lineman. With the director's agreement, the commission can set operating standards and limit work based on safety, training, experience, knowledge, and financial responsibility.
Contractors face broader business conduct rules
The law bans listed unlicensed work, work beyond license limits, and hiring unlicensed people for work requiring licenses. It also covers violations involving bids, permits, payments, supervision, insurance, worker-status requirements, continuing education, and trade certifications. Unprofessional conduct includes financial and insurance failures, deceptive acts causing material harm, and contract violations threatening public safety. Some requirements apply only to named contractor types or unincorporated businesses. Employees must receive at least 45 days' written notice before health benefits required by a written contract are canceled or reduced.
Contractors face training with alternative experience routes
Beginning January 1, 2027, contractor applicants must apply, pay a fee, complete 25-hour and five-hour business-and-law courses, and meet exam requirements. Most also need two years of full-time paid construction experience and business knowledge; instructor applicants instead face separate rules. Tests offered within the 25-hour course must be free. Qualifying inspectors can count two years of paid inspection work, including one year as a licensed combination inspector. Heating and cooling contractor applicants need two years of full-time paid trade-specific work and must pass an exam. The Associated General Contractors of Utah, Utah Chapter of the Associated Builders and Contractors, and Utah Home Builders Association qualify as providers when they offer the 25-hour course at least six times yearly. They must offer it in at least one Utah county outside Salt Lake, Utah, Davis, and Weber counties.
Alarm buyers get local response disclosures
Beginning January 1, 2027, alarm companies and agents must explain local alarm-response priority policies before customers buy systems or services. The law also defines misconduct that can lead to professional discipline. This includes willful, fraudulent, or deceitful acts causing material injury and certain contract violations involving threats. It also covers failures involving company qualifiers, agent licenses, operating standards, required insurance, or registration.
Alarm workers gain limited licensing relief
Alarm system owners and their employees do not need an agent license when acting in that owner or employee role. After receiving a state criminal background check, the division can issue a temporary permit to an agent applicant. The applicant must work at an alarm company office, call center, or administrative facility and contact customers only from there. The employer must confirm the permit's limits in writing. The permit ends after 90 days, departure from that job, or approval or denial of the regular license, whichever comes first.
Construction workers get written payday records
Beginning January 1, 2027, licensed contractors must give each individual paid for work a written or electronic statement on payday. Statements must list pay rates, the pay period, hourly workers' hours, itemized tax and court-ordered deductions, and total pay. Contractors must keep copies for at least three years and provide them to the licensing division on request, regardless of payment method.
Out-of-state linemen get another licensing path
Beginning January 1, 2027, journeyman linemen licensed elsewhere have another path to meet Utah's construction-industry experience requirement. They must meet requirements set by the state's licensing division through rules. This path addresses the experience requirement, not all licensing requirements.
Licensing records protect sensitive business information
Financial records supplied for contractor responsibility reviews are protected from public inspection and discovery in civil or administrative cases. The commission can still discuss them publicly unless their owner requests a closed meeting under Utah's open-meetings law. Social Security numbers and federal employer identification numbers supplied in covered alarm licensing records are private.
Contractors protected from added government requirements
Beginning January 1, 2027, Utah and local governments cannot add business requirements beyond those allowed by law for construction licensees. State agencies can still require contractors to qualify before bidding for contracts. Local governments can still charge fees for doing business.
Lenders avoid owner status without property ownership
Beginning January 1, 2027, construction lenders count as owners under payment-retention rules only when they have a separate property ownership interest. Lending alone does not make them owners. A person or business acting as a contractor, original contractor, or subcontractor does not count as a construction lender.
Limited electrical work avoids trade licensing
The law excludes handling electrical materials and listed cable and power-limited circuit work from the electrical trade. Minor electrical work tied to mechanical or service installation is also excluded within strict limits. Wiring must extend no more than 10 feet from an existing outlet or disconnect and stay within 120 volts and 20 amperes. Cable-type wiring qualifies only when it poses no shock or fire-starting hazard.
Longstanding contractors gain simpler leadership renewal options
Beginning January 1, 2027, eligible contractors can meet the qualifying-person requirement at renewal by listing an active employee and applicable trade-license number. Plumbing and electrical contractors need five consecutive violation-free years; other contractors need 10. This option is unavailable if more than 50% of ownership changed during the matching five- or 10-year period.
Alarm agents face screening and identification
Alarm agent applicants must apply, pay a fee, submit fingerprints, complete background checks, and disclose requested criminal history. They must attest that they have no unrestored court finding of incompetence and no current substance use disorder. The division or board can require an applicant meeting. Licensed agents must carry a license copy while doing licensed work and show it to police, division staff, or customer representatives on request.
Construction licensees must complete ongoing education
Beginning January 1, 2027, each two-year license term requires six education hours for contractors and 16 for electricians. Plumbers need 12 hours, and elevator mechanics need eight. Heating and cooling contractors must spend at least three of their six hours on system installation, repair, or replacement. Approved-course and provider rules apply, including limits on whom some trade associations can serve. The division may keep course-completion registries and charge fees to administer these requirements.
Covered crane operators need approved certification
Beginning January 1, 2027, crane operators on covered commercial projects must hold certification from an approved organization. The National Commission for the Certification of Crane Operators qualifies; alternatives need division approval, equivalent testing, and specified national standards. Excluded projects include detached single-family homes, attached homes through fourplexes, and nonresidential projects fewer than two stories above ground. Work incidental to petroleum refining or electrical-utility construction or maintenance is also exempt.
Residential plumbers have four-unit work limit
Beginning January 1, 2027, the residential plumbing license category covers single-family and multifamily homes with no more than four units. A residential journeyman plumber works exclusively on plumbing in those buildings. This sets the work covered by that license category.
Commercial electric fences require alarm licensing
Installing, repairing, maintaining, or replacing covered battery-powered suspended-wire alarm fences requires an alarm license. Covered systems are on nonresidential property, connect to an alarm, and use batteries supplying no more than 12 volts direct current. They must meet international energizer limits and division rules and have a surrounding nonelectric fence or wall at least five feet high. Their height cannot exceed the greater of 10 feet or two feet above that surrounding barrier. Signs reading "WARNING -- ELECTRIC FENCE" must be no more than 30 feet apart.
Construction permits require contractor compliance proof
Authorities requiring both a construction permit and contractor licensing must collect contractor license details. If the contractor is chosen after permit issuance, the applicant must select a currently licensed contractor and provide the license number. Contractors must display that number and show required workers' compensation, unemployment contributions, health coverage, and tax withholding compliance. Applicants claiming a license exemption must sign a statement identifying it and provide any intended contractor's license number.
Fire sprinkler contractors need qualified oversight
Beginning January 1, 2027, fire sprinkler contractors must have a qualifying person who meets the general contractor-qualifier requirements. That person may qualify as a licensed general building contractor or through the listed sprinkler training, experience, and exam routes. These include an approved apprenticeship, two years supervised by a certified sprinkler contractor, specified or equivalent testing, or division-accepted equivalent training and experience.
Electrician license surcharges fund trade training
The division sets an electrician license surcharge of up to $5 for issuance, renewal, and reinstatement. It covers apprentice, journeyman, master, residential journeyman, and residential master licenses. The Electrician Education Fund can support training on electrical laws and practices with commission approval. At fiscal year-end, balances above $100,000 transfer to the General Fund.
Electricians face qualification and supervision rules
Beginning January 1, 2027, electrician applicants must meet education or experience requirements, apply, pay fees, and pass required exams. Residential master applicants need two years as licensed residential journeymen, unless they qualify through an expedited route set by rule. Apprentices must name a supervisor and receive immediate supervision from an authorized licensed electrician during their first three training years. Starting in year four, apprentices can work unsupervised for up to eight hours in any 24-hour period. Apprentice-to-supervisor ratio rules still apply.
Elevator mechanics gain regular and temporary routes
Beginning January 1, 2027, elevator mechanics can qualify through three years of related work, a division exam, or a qualifying apprenticeship. Apprenticeships must meet chapter standards and be registered with a federal or state apprenticeship authority. A licensed contractor unable to find a licensed mechanic can request a temporary license for a worker. The contractor must certify acceptable documented experience and education; the worker must apply and pay the required fee. The division sets the temporary term and may renew it while the shortage continues.
Plumber apprentices gain limited independent work
Beginning January 1, 2027, licensed plumber apprentices need immediate supervision during their first three training years. Starting in year four, they may work without supervision for up to eight hours in any 24-hour period. Apprentices and supervisors must also follow commission rules on apprentice-to-supervisor ratios.
Plumber license surcharges support trade education
Beginning January 1, 2027, the division may charge up to $5 when covered plumber licenses are issued, renewed, or reinstated. This covers apprentice, journeyman, master, residential journeyman, and residential master licenses. The new Plumber Education Fund can support training about plumbing laws and practices with commission approval. Any balance above $100,000 at fiscal year-end transfers to the General Fund.
Construction payments need clear debt labels
Contractors paying a running account, multiple contracts, or outstanding debt must identify the contract and account items being paid. Subcontractors and material suppliers receiving labor or material payments must require the same labels. An owner can gain a lien defense after properly labeling a materials payment that the contractor passes on without the recipient requiring that label.
Gas workers face certification with limited waivers
Beginning January 1, 2027, covered gas-appliance and combustion-system workers need required training and certification, even when exempt from licensing. Covered work includes installation, repair, maintenance, cleaning, and replacement; employers must ensure covered employees meet these requirements. The division may waive training for adequate experience. A certification waiver requires an equivalent test or approved gas-line-appliance apprenticeship, plus immediate one-to-one supervision by a certified or certification-exempt person.
Alarm license surcharges support online codes
Alarm license issuance, renewal, and reinstatement carry a $1 surcharge supporting online access to building codes and standards. Appropriated library-access funds remain available after the budget year ends rather than expiring at year-end.
Contractor search expands with possible fees
The state must provide an online Construction Business Registry searchable by business, license, and the person qualifying the business. Contractors can choose contact details, update them, or opt out. Without a contractor's selection, only public contact details appear. The division may charge a registry entry fee to cover its costs; the law does not set the amount.
Gas installers share costs with utilities
Qualifying installers generally pay to install natural gas facilities. Gas corporations pay engineering, inspection, mapping, and locating costs, plus extra costs for facilities they require above the minimum system. They must inspect and test installations against applicable laws and gas tariff standards. A corporation need not supply gas or accept ownership until any necessary inspection verifies compliant installation and testing.
Trade and alarm applicants pay $1
Beginning January 1, 2027, construction-trade, alarm company, and alarm agent license applicants pay an extra $1 per application. The charge applies to initial licenses, renewals, and reinstatements, on top of other fees. The money goes to the General Fund to support licensee access to an online library of building codes and standards.
Construction oversight adds inspections and standards
The Construction Services Commission oversees licensing standards, exams, trainee supervision, fees, hearings, and sanctions. Rulemaking and sanctions require the director's agreement; commission hearings apply when the board or an administrative law judge does not handle them. The division must investigate specified licensed and unlicensed conduct, inspect covered trade work, and can enter work sites. It must decline an investigation when it finds no apparent material threat to public health, safety, or welfare.
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
Senate 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/ substituted
Yes: 0 • No: 0
House vote • 1/27/2026
House/ uncircled
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 • 1/22/2026
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