58-55-304 - Licensee names -- License number use -- License qualifier.
58-55-304. Licensee names -- License number use -- License qualifier.
(1) No license may be issued by the division in a name that is identical to or so resemblesthe name of another licensee that the division determines that it may result in confusion ormistake.
(2) The contractor's license number shall be made a part of all permit applications,contracts, agreements, or bids when a license is required.
(3) The division may issue a license in the name of an individual or the name of abusiness entity for which the individual acts as a qualifier, in accordance with the following:
(a) An individual shall:
(i) submit an application in the individual's name;
(ii) demonstrate the individual's own financial responsibility; and
(iii) pass the required examination and meet all other requirements of this chapter.
(b) A business entity shall:
(i) submit the application in the name of and on behalf of the business entity;
(ii) list the individual as the qualifier;
(iii) demonstrate financial responsibility of the business entity if applying for acontractor's license;
(iv) provide evidence that the individual qualifier has passed the required examination;and
(v) meet all other requirements of this chapter.
(4) A person acting as a qualifier for a business entity licensee must demonstrate to thedivision that the individual is an owner, officer, or manager within that business entity whoexercises material authority in the conduct of that business entity's contracting business by:
(a) making substantive technical and administrative decisions relating to the workperformed for which a license is required under this chapter;
(b) hiring, promoting, transferring, laying off, disciplining, directing, or dischargingemployees of the licensee either by himself or through others; and
(c) not being involved in any other employment or activity which conflicts with theindividual's duties and responsibilities to ensure the licensee's performance of work regulatedunder this chapter does not jeopardize the public health, safety, and welfare.
(5) (a) Except as provided in Subsections (5)(b) and (c), it is the duty and responsibilityof the licensee and the qualifier to comply with the provisions of this section. Failure to complywith the requirements of this section may be considered unprofessional conduct by the licensee,the qualifier, or both.
(b) If a licensee business entity has maintained its license and has not violated therequirements of this chapter or Sections 58-55-101 through 58-55-604 for a period of 10consecutive years, the business entity may maintain its license under this chapter by recording anactive employee name and registration/license number from the applicable trade on the renewalapplication in order to comply with the individual qualifier requirements of this section. However, this Subsection (5)(b) shall not apply if more than 50% of the ownership of thebusiness entity has been transferred at any time during the ten-year period.
(c) If a plumbing or electrical business entity has maintained its license and has notviolated the requirements of this chapter or Sections 58-55-101 through 58-55-604 for a period offive consecutive years, the business entity may maintain its license under this chapter byrecording an active employee name and registration/license number from the applicable trade on
the renewal application in order to comply with the individual qualifier requirements of thissection. However, this Subsection (5)(c) shall not apply if more than 50% of the ownership ofthe business entity has been transferred at any time during the five-year period.
(6) If an individual qualifying on behalf of a business entity issued a license under thischapter ceases association with that entity as required in Subsection (4), the licensee shall notifythe division in writing within 10 days after cessation of association or employment. If notice isgiven, the license shall remain in force for 60 days after the date of cessation of association oremployment. The licensee shall replace the original qualifier with another individual qualifierwithin the 60-day period or the license shall be automatically suspended.
(7) Failure to notify the division of cessation of association or employment of a qualifieras required in Subsection (6) may result in immediate suspension of the license upon a finding ofgood cause.
Amended by Chapter 14, 2004 General Session