Utah § 58-55-205 - Financial responsibility. (Effective 1/1/2027)

Full text of Utah Utah Code § 58-55-205 — Financial responsibility. (Effective 1/1/2027), with citation guidance and answers to common questions.

§ 58-55-205. Financial responsibility. (Effective 1/1/2027)

Effective 1/1/2027
58-55-205.  Financial responsibility.
(1)Before issuing, renewing, or reinstating a contractor license, the division shall require an applicant to demonstrate financial responsibility by:
(a)
(i)completing a financial responsibility questionnaire the division prepares; and
(ii)signing the questionnaire and certifying the accuracy of the information provided; or
(b)submitting a bond in the form and amount the commission determines by rule, made with the concurrence of the director and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2)An applicant, a licensee, or a person that holds an ownership interest in an unincorporated contractor licensee shall maintain financial responsibility throughout the period of licensure.
(3)At the division's discretion, the division may audit the financial responsibility of an applicant, a licensee, or a person that holds an ownership interest in an unincorporated entity licensee.
(4)The applicant, the licensee, and a person that holds an ownership interest in an unincorporated entity licensee bear the burden of demonstrating financial responsibility.
(5)
(a)When reviewing the financial responsibility of an unincorporated entity, the division:
(i)shall consider the personal financial information of each person that holds an ownership interest in the entity; and
(ii)may at any time:
(A)audit the personal financial information of a person that holds an ownership interest; or
(B)request and obtain a credit report for a person that holds an ownership interest.
(b)If the division determines, based on the financial information of the applicant, the licensee, or a person that holds an ownership interest in an unincorporated entity that an applicant or licensee lacks the financial responsibility to engage successfully in business as a contractor, the division may:
(i)prohibit the person from engaging in a construction trade;
(ii)prohibit the applicant or licensee from engaging in a construction trade unless the applicant or licensed entity dissociates from the person the division determines lacks financial responsibility within 10 days after the division makes the determination of lack of financial responsibility; or
(iii)require the applicant or licensee to post a bond that is:
(A)in the amount and form the commission determines by rule, made with the concurrence of the director and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
(B)equal to 20% of the applicant or licensee's annual gross distributions to the licensee's owners, including coverage for unpaid obligations including taxes.


Enacted by Chapter 42, 2026 General Session

Source: official Utah text · Last verified 2026-08-27

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Frequently Asked Questions About Utah § 58-55-205

What does Utah Code § 58-55-205 cover?

Section 58-55-205 ("Financial responsibility. (Effective 1/1/2027)") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Utah § 58-55-205?

A common citation format is "Utah Code § 58-55-205" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 58-55-205 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Utah.