1. (1) As used in this section, "qualifying violation" means a violation of:

   1. (a) Section 58-55-503;
   2. (b) Section 58-55-504;
   3. (c) Subsections 58-55-601(1) through (3), (7), (9), (10), (12), (14)(e), and (16), or Subsection 58-55-601(18) through (24); or
   4. (d) Subsection 58-55-602(4) or (6).

2. (2)

   1. (a) If an investigation shows a person committed a qualifying violation, or violated a division rule or order related to a qualifying violation, the division shall:

      1. (i) issue a citation;
      2. (ii) attempt a stipulated settlement; or
      3. (iii) require the person to appear in an adjudicative proceeding in accordance with Title 63G, Chapter 4, Administrative Procedures Act.

   2. (b) The division may assess a fine and issue a cease-and-desist order based on:

      1. (i) an uncontested citation;
      2. (ii) a stipulated settlement; or
      3. (iii) a violation finding in an adjudicative proceeding regarding a qualifying violation.

3. (3)

   1. (a) Each citation shall:

      1. (i) be in writing;
      2. (ii) describe the qualifying violation with specific reference to statute, rule, or order;
      3. (iii) instruct the recipient to request a hearing in writing within 20 calendar days after the day on which the division issues the citation if the recipient contests; and
      4. (iv) state the consequences of failing to contest or pay fines.

   2. (b) The division may serve the citation:

      1. (i) according to the Utah Rules of Civil Procedure;
      2. (ii) in person or through an agent; or
      3. (iii) by mail.
   3. (c) If the recipient does not request a hearing within 20 calendar days after the day on which the citation is issued, the citation becomes a final division order.
   4. (d) The division may extend the 20 calendar day period for cause.

4. (4)

   1. (a) The division may deny, suspend, revoke, place on probation, or refuse to issue or renew the license of a person that does not comply with a final citation.
   2. (b) The division shall issue a citation within one year of the reported qualifying violation.

5. (5) The director or the director's designee shall assess fines as follows:

   1. (a) except as provided in Subsection (5)(b), for a qualifying violation:

      1. (i) for a first offense, up to $1,000;
      2. (ii) for a second offense, up to $2,000; and
      3. (iii) for an additional qualifying violation, other than a violation described in Subsection 58-55-601(14)(e) or (24), up to $2,000 per day of continued offense; and

   2. (b) for a violation of Subsection 58-55-601(14)(e) or (24):

      1. (i) for a first offense, up to $2,000;
      2. (ii) for a second offense, up to $4,000; and
      3. (iii) for an additional violation of Subsection 58-55-601(14)(e) or (24), up to $4,000 per day of continued qualifying violation.

6. (6)

   1. (a) Except as provided in Subsection (8), the division shall consider a qualifying violation a second or additional offense if:

      1. (i) a prior final order established a qualifying violation; or
      2. (ii) the division initiated an action for an earlier offense and finds a second qualifying violation during a new investigation before resolving the initial case.
   2. (b) The division shall follow this section when issuing final orders for repeated qualifying violations.

7. (7)

   1. (a) The division shall revoke a license if the licensee violates Subsection 58-55-601(19) or (20) two or more times in a 12-month period.
   2. (b) The division may exempt a licensee from revocation under Subsection 58-55-601(19) if the licensee proves the licensee verified the individual's federal work status using a status verification system under Section 13-47-102.
   3. (c) Each qualifying violation under Subsection 58-55-601(20) or (21) involving a different individual counts as a separate qualifying violation.
8. (8) If five or more years pass between qualifying violations, the division may not treat a new qualifying violation as a second or additional qualifying violation.
9. (9) The division may treat each instance of the same type of qualifying violation under Section 58-55-601 as a separate offense and may impose a separate penalty for each.

10. (10) The division and commission may suspend a license if:

    1. (a) the licensee receives a citation for violating:

       1. (i) Section 58-55-503;
       2. (ii) Section 58-55-504; or
       3. (iii) Section 58-55-601; or

    2. (b) the licensee fails to:

       1. (i) apply for a new license for a new business structure;
       2. (ii) maintain or demonstrate financial responsibility in accordance with Section 58-55-205, while holding a contractor license under Part 2, Contractors; or
       3. (iii) notify the division of insurance loss or change in qualifier.

Repealed and Re-enacted by Chapter 42, 2026 General Session