# Utah H.B. 40: Utah Construction Trades Licensing Act Amendments Utah H.B. 40, Utah Construction Trades Licensing Act Amendments, is a 2026 General Session House bill sponsored by Thomas W. Peterson (Republican); status signed, last action 2026-03-17 (Governor Signed); PRIA reads it as touching household money (as of 2026-10-14). - Canonical: https://policyrisk.com/state-bill/UT-HB40-2026GS - As of: 2026-10-14 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Utah H.B. 40 - State: Utah - Session: 2026 General Session - Title: Utah Construction Trades Licensing Act Amendments - Status: signed - Chamber: House - Introduced: 2025-12-18 - Last action: 2026-03-17, Governor Signed - Sponsor: Thomas W. Peterson (Republican) - Cosponsors: 1 - Subjects: Business, Construction, Labor and Employment, Occupational and Professional Licensing - Touches household money: yes - Roll calls: 11 (139 yes, 3 no in all) - Economic provisions PRIA read: 49 ## Summary No summary available. ## Bill overview: provisions PRIA read - License exemptions for small construction projects: benefit, medium. 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… - Specialty contractors can include related trades: benefit, medium. 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 l… - Alarm buyers get local response disclosures: benefit, low. 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… - Alarm workers gain limited licensing relief: benefit, low. 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 ad… - Construction workers get written payday records: benefit, low. 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 l… - Out-of-state linemen get another licensing path: benefit, low. 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 requirem… - Licensing records protect sensitive business information: benefit, low. 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 a… - Contractors protected from added government requirements: benefit, low. 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: benefit, low. 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 c… - Limited electrical work avoids trade licensing: benefit, low. 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 discon… - Longstanding contractors gain simpler leadership renewal options: benefit, low. 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 unavaila… - Contractors risk losing licenses after violations: cost, high. 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 o… - Disciplined contractors face licensing delays and costs: cost, high. 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 off… - Tradespeople must meet license renewal rules: cost, medium. 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… - Alarm companies face stricter entry checks: cost, medium. 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 scre… - Alarm companies must maintain qualified managers: cost, medium. 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… - Alarm violations bring fines and suspension: cost, medium. 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… - Construction violations bring fines and charges: cost, medium. 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 r… - Contractor leaders face responsibility and replacement deadlines: cost, medium. 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… - Contractors face credential and insurance checks: cost, medium. 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 lia… - Contractors face licensing and disclosure rules: cost, medium. 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 lic… - Contractors must show ongoing financial responsibility: cost, medium. 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… - Unincorporated contractors face ownership reports and fees: cost, medium. 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,… - Unlicensed businesses cannot sue for payment: cost, medium. 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. - Alarm agents face screening and identification: cost, low. 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 m… - Construction licensees must complete ongoing education: cost, low. 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 repl… - Covered crane operators need approved certification: cost, low. 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. Exc… - Residential plumbers have four-unit work limit: cost, low. 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: cost, low. 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 energiz… - Construction permits require contractor compliance proof: cost, low. 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 sh… - Fire sprinkler contractors need qualified oversight: cost, low. 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 appr… - Plumbers gain several license qualification routes: mixed, medium. 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… - Alarm businesses face licenses and background checks: mixed, medium. 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… - Construction payments gain deadlines and interest: mixed, medium. 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 p… - Contractor licenses define allowed and restricted work: mixed, medium. 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 except… - Contractors face broader business conduct rules: mixed, medium. 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… - Contractors face training with alternative experience routes: mixed, medium. 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.… - Electrician license surcharges fund trade training: mixed, low. 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 commi… - Electricians face qualification and supervision rules: mixed, low. 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 n… - Elevator mechanics gain regular and temporary routes: mixed, low. 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 lice… - Plumber apprentices gain limited independent work: mixed, low. 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 apprenti… - Plumber license surcharges support trade education: mixed, low. 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… - Construction payments need clear debt labels: mixed, low. 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… - Gas workers face certification with limited waivers: mixed, low. 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 requiremen… - Alarm license surcharges support online codes: mixed, low. 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: mixed, low. 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 r… - Gas installers share costs with utilities: mixed, low. 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 st… - Trade and alarm applicants pay $1: mixed, low. 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 li… - Construction oversight adds inspections and standards: mixed, low. 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 in… ## Sponsors and cosponsors - Sponsor: Thomas W. Peterson (Republican), House - Cosponsor: Evan J. Vickers (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-02-12 | Senate | Senate/ passed 3rd reading | pass | 24 | 1 | | | 2026-02-11 | Senate | Senate/ passed 2nd reading | pass | 28 | 1 | | | 2026-02-05 | Senate | Senate Comm - Favorable Recommendation | pass | 5 | 0 | | | 2026-01-30 | House | House/ passed 3rd reading | pass | 70 | 1 | | | 2026-01-30 | House | House/ uncircled | fail | 0 | 0 | | | 2026-01-30 | House | House/ floor amendment failed | fail | 0 | 0 | | | 2026-01-27 | House | House/ substituted | fail | 0 | 0 | | | 2026-01-27 | House | House/ uncircled | fail | 0 | 0 | | | 2026-01-27 | House | House/ circled | fail | 0 | 0 | | | 2026-01-27 | House | House/ circled | fail | 0 | 0 | | | 2026-01-22 | House | House Comm - Favorable Recommendation | pass | 12 | 0 | | ## Actions (38) - 2026-03-17: Governor Signed - 2026-03-12: House/ to Governor (House) - 2026-03-12: House/ received enrolled bill from Printing (House) - 2026-03-05: House/ enrolled bill to Printing (House) - 2026-03-05: Enrolled Bill Returned to House or Senate - 2026-02-17: Draft of Enrolled Bill Prepared - 2026-02-17: Bill Received from House for Enrolling - 2026-02-17: House/ signed by Speaker/ sent for enrolling (House) - 2026-02-17: House/ received from Senate (House) - 2026-02-12: Senate/ to House (Senate) - 2026-02-12: Senate/ signed by President/ returned to House (Senate) - 2026-02-12: Senate/ passed 3rd reading (Senate) - 2026-02-12: Senate/ 3rd reading (Senate) - 2026-02-11: Senate/ passed 2nd reading (Senate) - 2026-02-11: Senate/ 2nd reading (Senate) - 2026-02-06: Senate/ placed on 2nd Reading Calendar (Senate) - 2026-02-06: Senate/ committee report favorable (Senate) - 2026-02-05: Senate Comm - Favorable Recommendation - 2026-02-03: Senate/ to standing committee (Senate) - 2026-02-02: Senate/ 1st reading (Introduced) (Senate) - 2026-01-30: Senate/ received from House (Senate) - 2026-01-30: House/ to Senate (House) - 2026-01-30: House/ passed 3rd reading (House) - 2026-01-30: House/ floor amendment failed (House) - 2026-01-30: House/ uncircled (House) - 2026-01-27: House/ circled (House) - 2026-01-27: House/ substituted (House) - 2026-01-27: House/ uncircled (House) - 2026-01-27: House/ circled (House) - 2026-01-27: House/ 3rd reading (House) - 2026-01-23: House/ 2nd reading (House) - 2026-01-23: House/ committee report favorable (House) - 2026-01-22: House Comm - Favorable Recommendation - 2026-01-20: House/ to standing committee (House) - 2026-01-20: House/ 1st reading (Introduced) (House) - 2026-01-14: House/ received fiscal note from Fiscal Analyst (House) - 2026-01-14: House/ received bill from Legislative Research (House) - 2025-12-18: Numbered Bill Publicly Distributed ## Bill text - Enrolled, 2026-03-05: [PDF](https://le.utah.gov/Session/2026/bills/enrolled/HB0040.pdf) - Substitute #1, 2026-01-27: [PDF](https://le.utah.gov/Session/2026/bills/introduced/HB0040S01.pdf) - Introduced, 2025-12-18: [PDF](https://le.utah.gov/Session/2026/bills/introduced/HB0040.pdf) ## Related bills - H.B. 94: Criminal Accounts Receivable Amendments (signed) - H.B. 101: Firearm Background Check Amendments (signed) - H.B. 178: School Zone Speeding Amendments (signed) - H.B. 134: Offender Transfer Amendments (signed) - H.B. 136: Unlicensed Driver Amendments (signed) - H.B. 220: Public Safety Data Amendments (signed) ## Sources - [Enrolled (PDF)](https://le.utah.gov/Session/2026/bills/enrolled/HB0040.pdf) - [Substitute #1 (PDF)](https://le.utah.gov/Session/2026/bills/introduced/HB0040S01.pdf) - [Introduced (PDF)](https://le.utah.gov/Session/2026/bills/introduced/HB0040.pdf) ## Related - [H.B. 94: Criminal Accounts Receivable Amendments](https://policyrisk.com/state-bill/UT-HB94-2026GS) - [H.B. 101: Firearm Background Check Amendments](https://policyrisk.com/state-bill/UT-HB101-2026GS) - [H.B. 178: School Zone Speeding Amendments](https://policyrisk.com/state-bill/UT-HB178-2026GS) - [H.B. 134: Offender Transfer Amendments](https://policyrisk.com/state-bill/UT-HB134-2026GS) - [H.B. 136: Unlicensed Driver Amendments](https://policyrisk.com/state-bill/UT-HB136-2026GS) - [H.B. 220: Public Safety Data Amendments](https://policyrisk.com/state-bill/UT-HB220-2026GS) - [Utah bills](https://policyrisk.com/states/utah/bills) - [Utah state hub](https://policyrisk.com/states/utah) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/UT-HB40-2026GS (as of 2026-10-14).