58-55-503 - Penalty for unlawful conduct -- Citations. - Utah Statutes

58-55-503. Penalty for unlawful conduct -- Citations.
(1) (a) (i) A person who violates Subsection 58-55-308(2), Subsection 58-55-501(1), (2),(3), (4), (5), (6), (7), (9), (10), (12), (14), (15), (22), or (23), or Subsection 58-55-504(2), or whofails to comply with a citation issued under this section after it is final, is guilty of a class Amisdemeanor.
(ii) As used in this section in reference to Subsection 58-55-504(2), "person" means anindividual and does not include a sole proprietorship, joint venture, corporation, limited liabilitycompany, association, or organization of any type.
(b) A person who violates the provisions of Subsection 58-55-501(8) may not beawarded and may not accept a contract for the performance of the work.
(2) A person who violates the provisions of Subsection 58-55-501(13) is guilty of aninfraction unless the violator did so with the intent to deprive the person to whom money is to bepaid of the money received, in which case the violator is guilty of theft, as classified in Section76-6-412.
(3) Grounds for immediate suspension of the licensee's license by the division and thecommission include the issuance of a citation for violation of Subsection 58-55-308(2), Section58-55-501, or Subsection 58-55-504(2), or the failure by a licensee to make application to, reportto, or notify the division with respect to any matter for which application, notification, orreporting is required under this chapter or rules adopted under this chapter, including applying tothe division for a new license to engage in a new specialty classification or to do business under anew form of organization or business structure, filing with the division current financialstatements, notifying the division concerning loss of insurance coverage, or change in qualifier.
(4) (a) If upon inspection or investigation, the division concludes that a person hasviolated the provisions of Subsection 58-55-308(2) or Subsections 58-55-501(1), (2), (3), (9),(10), (12), (14), (19), (21), (22), or (23), or Subsection 58-55-504(2), or any rule or order issuedwith respect to these subsections, and that disciplinary action is appropriate, the director or thedirector's designee from within the division shall promptly issue a citation to the personaccording to this chapter and any pertinent rules, attempt to negotiate a stipulated settlement, ornotify the person to appear before an adjudicative proceeding conducted under Title 63G,Chapter 4, Administrative Procedures Act.
(i) A person who is in violation of the provisions of Subsection 58-55-308(2), Subsection58-55-501(1), (2), (3), (9), (10), (12), (14), (19), (21), (22), or (23), or Subsection 58-55-504(2),as evidenced by an uncontested citation, a stipulated settlement, or by a finding of violation in anadjudicative proceeding, may be assessed a fine pursuant to this Subsection (4) and may, inaddition to or in lieu of, be ordered to cease and desist from violating Subsection 58-55-308(2),Subsection 58-55-501(1), (2), (3), (9), (10), (12), (14), (19), or (21), or Subsection 58-55-504(2).
(ii) Except for a cease and desist order, the licensure sanctions cited in Section 58-55-401may not be assessed through a citation.
(iii) (A) A person who receives a citation or is fined for violating Subsection58-55-501(21) may also be issued a cease and desist order from engaging in work to beperformed by a contractor licensed under this chapter unless the person meets the continuingeducation requirement within 30 days after receipt of the citation or fine.
(B) The order, if issued, shall be removed upon the person's completion of the continuingeducation requirement.
(C) This Subsection (4)(a)(iii) is repealed effective July 1, 2010.

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(b) (i) Each citation shall be in writing and describe with particularity the nature of theviolation, including a reference to the provision of the chapter, rule, or order alleged to have beenviolated.
(ii) The citation shall clearly state that the recipient must notify the division in writingwithin 20 calendar days of service of the citation if the recipient wishes to contest the citation at ahearing conducted under Title 63G, Chapter 4, Administrative Procedures Act.
(iii) The citation shall clearly explain the consequences of failure to timely contest thecitation or to make payment of any fines assessed by the citation within the time specified in thecitation.
(c) Each citation issued under this section, or a copy of each citation, may be served upona person upon whom a summons may be served:
(i) in accordance with the Utah Rules of Civil Procedure;
(ii) personally or upon the person's agent by a division investigator or by a personspecially designated by the director; or
(iii) by mail.
(d) (i) If within 20 calendar days from the service of a citation, the person to whom thecitation was issued fails to request a hearing to contest the citation, the citation becomes the finalorder of the division and is not subject to further agency review.
(ii) The period to contest a citation may be extended by the division for cause.
(e) The division may refuse to issue or renew, suspend, revoke, or place on probation thelicense of a licensee who fails to comply with a citation after it becomes final.
(f) The failure of an applicant for licensure to comply with a citation after it becomesfinal is a ground for denial of license.
(g) No citation may be issued under this section after the expiration of six monthsfollowing the occurrence of any violation.
(h) Fines shall be assessed by the director or the director's designee according to thefollowing:
(i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
(ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000;and
(iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to$2,000 for each day of continued offense.
(i) (i) For purposes of issuing a final order under this section and assessing a fine underSubsection (4)(h), an offense constitutes a second or subsequent offense if:
(A) the division previously issued a final order determining that a person committed afirst or second offense in violation of Subsection 58-55-308(2), Subsection 58-55-501(1), (2),(3), (9), (10), (12), (14), or (19), or Subsection 58-55-504(2); or
(B) (I) the division initiated an action for a first or second offense;
(II) no final order has been issued by the division in the action initiated under Subsection(4)(i)(i)(B)(I);
(III) the division determines during an investigation that occurred after the initiation ofthe action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequentviolation of the provisions of Subsection 58-55-308(2), Subsection 58-55-501(1), (2), (3), (9),(10), (12), (14), or (19), or Subsection 58-55-504(2); and
(IV) after determining that the person committed a second or subsequent offense under

Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated underSubsection (4)(i)(i)(B)(I).
(ii) In issuing a final order for a second or subsequent offense under Subsection (4)(i)(i),the division shall comply with the requirements of this section.
(5) (a) A penalty imposed by the director under Subsection (4)(h) shall be deposited intothe Commerce Service Account created by Section 13-1-2.
(b) A penalty which is not paid may be collected by the director by either referring thematter to a collection agency or bringing an action in the district court of the county in which theperson against whom the penalty is imposed resides or in the county where the office of thedirector is located.
(c) A county attorney or the attorney general of the state is to provide legal assistance andadvice to the director in any action to collect the penalty.
(d) In an action brought to enforce the provisions of this section, reasonable attorney'sfees and costs shall be awarded.

Amended by Chapter 278, 2010 General Session
Amended by Chapter 387, 2010 General Session