REGULATIONS
Vol. 41 Iss. 5 - October 21, 2024

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING
BOARD FOR CONTRACTORS
Chapter 22
Proposed

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD FOR CONTRACTORS

Proposed Regulation

Title of Regulation: 18VAC50-22. Board for Contractors Regulations (amending 18VAC50-22-10, 18VAC50-22-20, 18VAC50-22-30, 18VAC50-22-90 through 18VAC50-22-240, 18VAC50-22-260, 18VAC50-22-300, 18VAC50-22-310, 18VAC50-22-320, 18VAC50-22-350; repealing 18VAC50-22-250, 18VAC50-22-330).

Statutory Authority: § 54.1-201 of the Code of Virginia.

Public Hearing Information:

October 24, 2024 - 2 p.m. - Department of Professional and Occupational Regulation, 9960 Mayland Drive, Second Floor Conference Center, Richmond, Virginia 23233.

Public Comment Deadline: December 20, 2024.

Agency Contact: Cameron Parris, Regulatory Operations Administrator, Department of Professional and Occupational Regulation, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-9183, FAX (866) 350-5354, or email cameron.parris@dpor.virginia.gov.

Basis: Section 54.1-201 of the Code of Virginia requires the Board for Contractors to establish the qualifications of applicants for certification or licensure and promulgate regulations. Section 54.1-1102 of the Code of Virginia enumerates the legal authority for the board to administer the licensure of contractors and for the relicensure of contractors after license or certificate suspension or revocation.

Purpose: The offering and performing of contracting work by those who lack sufficient expertise, competence, integrity, and financial responsibility poses a risk to the public health, safety, and welfare. Risks include (i) damage to property, personal injury, or loss of life as the result of work that is improperly performed; (ii) financial harm to consumers as the result of construction that is not properly managed or performed; and (iii) harm to consumers as the result of those who lack the character and integrity to offer and engage in contracting work. As mandated by the General Assembly, the board protects the public health, safety, and welfare, in part, by establishing through regulation the minimum qualifications for entry into the profession.

Substance: The amendments:

1. Revise 18VAC50-22-10 to (i) incorporate statutory terms from § 54.1-1100 of the Code of Virginia that are used in the regulation and (ii) provide clarification of several defined terms and remove terms that are not used in the regulation;

2. Revise 18VAC50-22-20 to add "fire sprinkler contractors" and revise the definitions for "commercial building contractors," "electrical contractors," and "highway/heavy contractors";

3. Revise 18VAC50-22-30 to remove the definition of "fire sprinkler contracting." Several specialty services are revised to provide flexibility for contractors holding a "highway/heavy contractors" license classification to perform work covered by the specialty designation. Similar changes are made to other specialty service definitions for holders of other license classifications or specialty service designations;

4. Revise 18VAC50-22-100 to remove examination fees and to incorporate fees associated with applications for reporting a change of designated employee, reporting a change of qualified individual, and addition of a license classification or specialty service, currently under 18VAC50-22-250. Clarification is also added regarding the imposition of Recovery Fund assessments;

5. Revise 18VAC50-22-130 to provide clarification regarding the status of a license during the 30-day grace period associated with license renewals;

6. Revise 18VAC50-22-160 to make provisions regarding reinstatement of licenses clearer. The revised section provides for when a licensee must reinstate a license, the requirements for reinstatement, and the period of time that a license is eligible for reinstatement;

7. Revise 18VAC50-22-220 to extend, from 45 days to 60 days, the period of time in which a regulant must report a change of qualified individual to the board. The requirement for a contractor to report a change of responsible management is streamlined;

8. Repeal 18VAC50-22-250 as its provisions have been incorporated under 18VAC50-22-100;

9. Revise the minimum requirements for residential contracting contracts in 18VAC50-22-260 to expand the requirement for a contractor to obtain a signed acknowledgment by the consumer that the consumer has been provided with and read the Department of Professional and Occupational Regulation statement of protection available through the board. The requirement would no longer apply only to contracts resulting from a door-to-door solicitations;

10. Revise 18VAC50-22-300 to reduce from eight hours to six hours the required length for a prelicense education course;

11. Revise 18VAC50-22-310 to remove a requirement that student records for prelicense education courses include a student's social security number; and

12. Repeal 18VAC50-22-330 to remove the requirement that prelicense education course certificates of approval be available where a course is taught.

Issues: The primary advantages to the public and regulated community include providing clarification to provisions of the regulation, ensuring the regulation complements Virginia law and reflects current agency procedures, and reducing regulatory burdens by removing requirements that are not necessary to protect the health, safety, and welfare of the public. There are no identifiable disadvantages to the public or the Commonwealth. It is not anticipated that the regulatory change will create any substantial disadvantages to the regulated community.

Department of Planning and Budget's Economic Impact Analysis:

The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.1

Summary of the Proposed Amendments to Regulation. The Board of Contractors (board) proposes to (i) expand the scope of certain license classes or specialty designations; (ii) allow contractors for the framing specialty service to act as a prime contractor; (iii) expand the requirement for a contractor to obtain a signed acknowledgment from a residential consumer that he has been provided with and read the statement of protection available through the board to all contracts; (iv) reduce the required length for a prelicense education course from eight hours to six hours; and (v) make several administrative changes, including no longer requiring training providers to post certificates for approved pre-license courses at their location, extending the period of time in which a regulant must report a change of qualified individual to the board from 45 days to 60 days, and removing a requirement that student records for prelicense education courses include a student's social security number.

Background. The initial impetus for this action is Executive Directive Number One (2022), which directs executive branch entities under the authority of the Governor "to initiate regulatory processes to reduce by at least 25 percent the number of regulations not mandated by federal or state statute, in consultation with the Office of the Attorney General, and in a manner consistent with the laws of the Commonwealth."2 This regulation applies to those who engage or offer to engage in contracting work by requiring that such persons obtain a contractor license from the board. According to the board, offering and performing of contracting work by those who lack sufficient expertise, competence, integrity, and financial responsibility poses a risk to the public health, safety, and welfare. Risks include damage to property, personal injury, or loss of life as the result of work that is improperly performed; financial harm to consumers as the result of construction that is not properly managed or performed; and harm to consumers as the result of those who lack the character and integrity to offer and engage in contracting work. This regulation protects the public health, safety, and welfare, in part, by establishing the minimum qualifications for entry into contracting.

Estimated Benefits and Costs. One of the proposed changes would expand the scope of certain license classes or specialty designations. The regulation specifies the specialty service each license classification or specialty designation is allowed to perform. The board proposes to expand the stipulated scope of work for five contracting classifications and specialty designations (the count of licenses for each classification or specialty is noted in parentheses), as follows: (i) allow highway/heavy contractors (4,514) to also perform environmental monitoring well contracting (96), environmental specialties contracting (253), masonry contracting (1,262), recreational facility contracting (325), steel erection contracting (97), and swimming pool construction contracting (297); (ii)·allow residential building contractors (22,706) to also perform farm improvement contracting (517); (iii) allow water well/pump contractors to also perform environmental monitoring well contracting (213); (iv) allow commercial improvement contractors (6,840) to also perform landscape service contracting (2,201); and (v) allow home improvement contractors (12,457) to also perform landscape service contracting (2,201). One of the main benefits of this change would be to permit certain contractors to perform other specialty services without having to pay the fees associated with adding a specialty service. Normally, the one-time cost for a qualified contractor to add a specialty service designation not stipulated by the regulation is $195, consisting of an application fee of $110 and an $85 fee for the qualified individual specialty examination. If all of the 4,514 highway/heavy contractors were to add all six specialty designations that would now be available to them, the total required fees would amount to $5.3 million (i.e., 4,514 contractors multiplied by six designations multiplied by $195 application and exam fee). While it is unlikely that all 4,514 highway/heavy contractors would have applied to add all six specialty service designations to their license even if there were no fees, it is likely that at least some of these contractors may have been discouraged by the current fees. Thus, the estimated $5.3 million in fee savings should be considered as the maximum amount of fee savings this proposed change may generate for all 4,514 highway/heavy contractors. In contrast, if only 10% of the highway/heavy contractors were to add a single specialty designation, the fee savings would be $88,023 (i.e., 451 multiplied by $195). Thus, the range for potential fee savings are quite large (i.e., $88,023 minus $5.3 million). Similarly, the proposed change may generate potential fee savings of up to $4.4 million (i.e., 22,706 multiplied by $195) for residential building contractors; up to $41,535 (i.e., 213 multiplied by $195) for water well/pump contractors; up to $1.3 million (i.e., 6,840 multiplied by $195) for commercial improvement contractors; and up to $2.4 million (i.e., 12,457 multiplied by $195) for home improvement contractors. Additionally, to the extent this change reduces a barrier to entry into the specialty services market and increases competition, it would have a potentially adverse effect on incumbent specialty service providers. Conversely, an increase in competition would lead to a reduction in prices that may be expected to benefit consumers. Another proposed change would amend the scope of practice for the framing subcontractor specialty service to allow such contractors to perform work in the specialty without having to be a subcontractor to a prime contractor. This change would allow 58 such contractors to be the prime contractor if they are able and interested in performing work in that capacity. An additional change would expand the requirement for residential service contractors to obtain a signed acknowledgment from the consumer that the consumer has been provided with and read the statement of protection available through the board. The requirement would no longer apply only to contracts resulting from a door-to-door solicitations but to all contracts for residential work. Requiring that each contract include a consumer's signed acknowledgment regarding receiving and reading a statement of protection may impose additional administrative costs on contracting firms. The board reports that both electronic and paper versions of contracts are used throughout the industry. Thus, there may be a small cost to contractor businesses and entities associated with paper and printing should a contract be delivered by such method. Notably, the statement of protection is made available by the board and is not a document that a contractor firm must develop. On the other hand, consumers who contract for residential contracting services that are provided with the statement of protection would have additional information and may be less likely to have a negative experience when contracting with a licensed contractor. Consumers that are knowledgeable about contractual transactions and requirements of licensed contractors may have an overall better experience when working with a licensed contractor, which may result in fewer complaints filed against licensed contractors. Another proposed change would reduce the required length for a prelicense education course from eight hours to six hours. The board believes it is unlikely that this proposal would reduce the fee for such courses, but it would provide two hours of time savings to the trainees as well as the trainers. The agency reports that information necessary to monetize the value of this benefit is not available. The regulatory action also proposes other changes that would remove an unnecessary requirement that certificates for approved prelicense courses be posted at the location where an approved course is taught; extend the period of time in which a regulant must report a change of qualified individual to the board from 45 days to 60 days; and remove a requirement that student records for prelicense education courses include a student's social security number. These proposed amendments would provide small administrative benefits to the regulants. The remaining changes are mainly editorial to reflect current practices, align the text with statute, and improve clarity in general. Notable among these proposed changes is the repeal of the fees associated with the qualified individual exam ($20), Class B exam ($40), and Class A exam ($60). According to the board, these exams have not been administered since the 1990s and consequently the removal of these fees is not expected to create an economic impact other than clarifying that these fees no longer apply.

Businesses and Other Entities Affected. The proposed amendments apply to contractors. As of June 1, 2024, the Board for Contractors licensed 33,282 Class A Contractors, 9,260 Class B Contractors, and 12,199 Class C Contractors. Additionally, there are 60 Residential Building Energy Analyst firms currently licensed with the board. All licensed entities would be affected by the proposed regulatory changes. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.3 An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.4 As noted, this action would introduce small administrative costs on contractors associated with obtaining a signed acknowledgement from consumers. However, not only are these costs are expected to be small, but they would also likely be more than offset by other changes providing administrative cost savings. The only adverse impact appears to be indicated for the incumbent specialty service contractors who would face additional competition as described.

Small Businesses5 Affected.6 Types and Estimated Number of Small Businesses Affected: According to the board, contractor licenses are issued to entities, which undoubtedly includes numerous small businesses. It is reasonable to assume that all entities holding Class C and Class B licenses meet the definition of "small business" as defined in § 2.2-4007.1 of the Code of Virginia. This is likely the case for Residential Building Energy Analyst firms. It is also possible that many entities holding a Class A license fall into the same category.

Costs and Other Effects: The proposed amendments include numerous changes some increasing administrative costs and some offsetting such costs. The only adverse impact appears to be on incumbent specialty service contractors who would face additional competition as described. Thus, the adverse impact on such contractors meeting the definition of a small business would be expected.

Alternative Method that Minimizes Adverse Impact: There does not appear to be a clear alternative method that both reduces adverse impact and meets the intended policy goals.

Localities7 Affected.8 There are no anticipated costs to localities because of the regulatory changes.

Projected Impact on Employment. The proposed amendments may increase the demand for labor in provision of specialty services whose scope is being expanded to other contractors. However, whether this increased demand would lead to an effect on total employment is not known.

Effects on the Use and Value of Private Property. Asset values of contractors may be positively affected from small, expected net savings in administrative costs and from being able to perform additional specialty services. On the other hand, the asset values of incumbent specialty service contractors that may face additional competition may be negatively affected. The proposed amendments do not affect real estate development costs.

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1 Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

2 https://www.governor.virginia.gov/media/governorvirginiagov/governor-of-virginia/pdf/ed/ED-1-Regulatory-Reduction.pdf.

3 Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

4 Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

5 Pursuant to § 2.2-4007.04, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

6 If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

7 "Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

8 Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency's Response to Economic Impact Analysis: The Board for Contractors concurs with the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

Pursuant to Executive Directive One (2022), the proposed amendments reduce regulatory burdens while still protecting the public health, safety, and welfare and include (i) revising definitions; (ii) removing and consolidating fees; (iii) clarifying and streamlining licensing provisions; (iv) extending to 60 days the period of time a regulant has to report a change of qualified individual; (v) expanding the requirement for a contractor to obtain the signed acknowledgment of receipt of department statement of protection; and (vi) reducing to six hours the length of the required prelicense education course and removing requirements that the student supply a social security number for that education course and that the course provider have certificates of approval available on site.

Part I

Definitions General

18VAC50-22-10. General definitions.

A. Section 54.1-1100 of the Code of Virginia provides definitions of the following terms and phrases as used in this chapter:

"Board"

"Class A contractors"

"Class B contractors"

"Class C contractors"

"Contractor"

"Department"

"Designated employee"

"Director"

"Fire sprinkler contractor"

"Owner-developer"

"Person"

"Value"

B. The following words and terms when used in this chapter, unless a different meaning is provided or is plainly required by the context, shall have the following meanings:

"Address of record" means the mailing address designated by the licensee to receive notices and correspondence from the board.

"Affidavit" means a written statement of facts, made voluntarily, and confirmed by the oath or affirmation of the party making it, taken before a notary or other person having the authority to administer such oath or affirmation.

"Business entity" means a sole proprietorship, partnership, corporation, limited liability company, limited liability partnership, or any other form of organization permitted by law.

"Change order" means any modification to the original contract, including, but not limited to, the time to complete the work, change in materials, change in cost, and change in the scope of work.

"Controlling financial interest" means the direct or indirect ownership or control of more than 50% ownership of a firm.

"Firm" means any business entity recognized under the laws of the Commonwealth of Virginia.

"Formal vocational training" means courses in the trade administered at an accredited educational facility or formal training, approved by the department board, conducted by trade associations, businesses, military, correspondence schools, or other similar training organizations.

"Full-time employee" means an employee who spends a minimum of 30 hours a week carrying out the work of the licensed contracting business and who receives an IRS Form W-2 annually.

"Helper" or "laborer" means a person who assists a licensed tradesman and who is not an apprentice as defined in 18VAC50-30-10 regulant.

"Licensee" means a firm holding a license issued by the Board for Contractors board to act as a contractor, as defined in § 54.1-1100 of the Code of Virginia.

"Net worth" means assets minus liabilities. For purposes of this chapter, assets shall Assets do not include any property owned as tenants by the entirety or property not titled in the name of the business entity.

"Prime contractor" means a licensed contractor that performs, supervises, or manages the construction, removal, repair, or improvement of real property pursuant to the terms of a primary contract with the property owner/lessee. The prime contractor may use its own employees to perform the work or use the services of other properly licensed contractors.

"Principal place of business" means the location where the licensee principally conducts business with the public.

"Reciprocity" means an arrangement by which the licensees of two states are allowed to practice within each other's boundaries by mutual agreement.

"Reinstatement" means having a license restored to effectiveness after the expiration date has passed the process and requirements through which an expired license can be made valid without the licensee having to apply as a new applicant.

"Renewal" means continuing the effectiveness of a license for another period of time the process and requirements for periodically approving the continuance of a license.

"Residential building energy analyst firm" means any business entity wherein a residential building energy analysis, as defined in § 54.1-1144 of the Code of Virginia, is offered or practiced.

"Responsible management" means the principals of the following individuals:

1. The sole proprietor of a sole Sole proprietorship;

2. The partners of a general General partnership;

3. The managing partners of a limited Limited partnership;

4. The officers of a corporation Corporation;

5. The managers of a limited Limited liability company;

6. The officers or directors of an association or both Association; and

7. Individuals in other business entities recognized under the laws of the Commonwealth as having a fiduciary responsibility to the firm.

"Sole proprietor" means any individual, not a corporation, who is trading under his own name, or under an assumed or fictitious name pursuant to the provisions of §§ 59.1-69 through 59.1-76 of the Code of Virginia.

"Supervision" means providing guidance or direction of a delegated task or procedure by a tradesman licensed in accordance with Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia, being accessible to the helper or laborer, and periodically observing and evaluating the performance of the task or procedure.

"Supervisor" means the licensed master or journeyman tradesman who has the responsibility to ensure that the installation is in accordance with the applicable provisions of the Virginia Uniform Statewide Building Code and provides supervision to helpers and laborers as defined in this chapter.

"Temporary license" means a license issued by the board pursuant to § 54.1-201.1 of the Code of Virginia that authorizes a person to engage in the practice of contracting until such time as the license is issued or 45 days from the date of issuance of the temporary license, whichever occurs first.

"Tenants by the entirety" means a tenancy which that is created between a husband and wife spouses and by which together they the spouses hold title to the whole with right of survivorship so that, upon death of either, the other takes whole to exclusion of the deceased's remaining heirs.

"Virginia Uniform Statewide Building Code" or "USBC" means building regulations comprised of those promulgated by the Virginia Board of Housing and Community Development in accordance with § 36-98 of the Code of Virginia, including any model codes and standards that are incorporated by reference and that regulate construction, reconstruction, alteration, conversion, repair, maintenance, or use of structures, and building and installation of equipment therein.

18VAC50-22-20. Definitions of license classifications.

The following words and terms when used in this chapter unless a different meaning is provided or is plainly required by the context shall have the following meanings unless a different meaning is provided or is plainly required by the context:

"Commercial building contractors" (Abbr: CBC) means those individuals contractors whose contracts include construction, remodeling, repair, improvement, removal, or demolition on real property owned, controlled, or leased by another person of commercial, industrial, institutional, governmental, and accessory use buildings or structures. The CBC classification does not provide for electrical, plumbing, HVAC, or gas fitting services and does not allow construction, repair, or improvement, of dwellings and townhouses as defined in the USBC.

If the CBC contractor performs specialty services other than those listed in this definition, all required specialty designations shall must be obtained. The CBC may act as a prime contractor and contract with subcontractors to perform work not permitted by the CBC license. The commercial building classification includes but is not limited to the functions carried out by the following specialties for contracts of commercial, institutional, governmental, and accessory use buildings or structures, including multi-family housing:

Billboard/sign contracting

Commercial improvement contracting

Concrete contracting

Farm improvement contracting

Industrialized building contracting

Landscape service contracting

Marine facility contracting

Masonry contracting

Painting and wallcovering contracting

Recreational facility contracting

Roofing contracting

Swimming pool contracting

"Electrical contractors" (Abbr: ELE) means those individuals contractors whose contracts include the construction, installation, repair, maintenance, alteration, or removal of electrical systems. This classification provides for all work covered by the electrical provisions of the USBC, including electronic/communication service contracting (ESC) and fire alarm systems contracting (FAS) specialties. A firm holding an ELE license is responsible for meeting all applicable individual license and certification regulations.

"Fire sprinkler contracting" (Abbr: SPR) means the classification that provides for the installation, repair, alteration, addition, testing, maintenance, inspection, improvement, or removal of sprinkler systems using water as a means of fire suppression when annexed to real property. This classification does not provide for the installation, repair, or maintenance of other types of fire suppression systems. The PLB classification allows for the installation of systems permitted to be designed in accordance with the plumbing provisions of the USBC. This classification may engage in the installation of backflow prevention devices in the fire sprinkler supply main and incidental to the sprinkler system installation when the installer has received formal vocational training approved by the board that included instruction in the installation of backflow prevention devices.

"Highway/heavy contractors" (Abbr: H/H) means those individuals contractors whose contracts include construction, repair, improvement, or demolition of the following:

Bridges

Dams

Drainage systems

Foundations

Parking lots

Public transit systems

Railroads

Roads

Runways

Streets

Structural signs and lights

Tanks

The functions carried out by these contractors include but are not limited to the following:

Building demolition

Clearing

Concrete work

Excavating

Grading

Nonwater well drilling

Paving

Pile driving

Road marking

Steel erection

These contractors also install, maintain, or dismantle the following:

1. Power systems for the generation and primary and secondary distribution of electric current ahead of the customer's meter;

2. Pumping stations and treatment plants;

3. Telephone, telegraph, or signal systems for public utilities; and

4. Water, gas, and sewer connections to residential, commercial, and industrial sites, subject to local ordinances.

This classification may also install backflow prevention devices incidental to work in this classification when the installer has received formal vocational training approved by the board that included instruction in the installation of backflow prevention devices. When performing site work, this classification may properly abandon a Class IIIC bored/drilled well in accordance with Virginia Department of Health regulations.

"HVAC contractors" (Abbr: HVA) means those individuals contractors whose work includes contracts include the installation, alteration, repair, or maintenance of heating systems, ventilating systems, cooling systems, steam and hot water heaters, heating systems, boilers, process piping, and mechanical refrigeration systems, including tanks incidental to the system. This classification does not provide for fire suppression installations, sprinkler system installations, or gas piping. A firm holding a an HVAC license is responsible for meeting all applicable individual license and certification regulations. This classification may install backflow prevention devices incidental to work in this classification.

"Plumbing contractors" (Abbr: PLB) means those individuals contractors whose contracts include the installation, maintenance, extension, or alteration, or removal of all piping, fixtures, appliances, and appurtenances in connection with any of the following:

Backflow prevention devices

Boilers

Hot water baseboard heating systems

Hot water heaters

Hydronic systems

Process piping

Public/private water supply systems within or adjacent to any building, structure, or conveyance

Sanitary or storm drainage facilities

Steam heating systems

Storage tanks incidental to the installation of related systems

Venting systems related to plumbing

These contractors also install, maintain, extend, or alter the following:

Liquid waste systems

Sewerage systems

Storm water systems

Water supply systems

This classification does not provide for (i) gas piping or (ii) the function of fire sprinkler contracting except for sprinklers that are tied into the domestic water supply. A firm holding a PLB license is responsible for meeting all applicable individual license and certification regulations. The classification may install fire sprinkler systems permitted to be designed in accordance with the plumbing provisions of the USBC when the installer has received formal vocational training approved by the board that included instruction of installation of fire sprinkler systems.

"Residential building contractors" (Abbr: RBC) means those individuals contractors whose contracts include construction, remodeling, repair, improvement, removal, or demolition on real property owned, controlled, or leased by another person of dwellings and townhouses, as defined in the USBC, including accessory buildings or structures on such property. The RBC classification does not provide for electrical, plumbing, HVAC, or gas fitting services and does not allow construction, removal, repair, or improvement to commercial, industrial, institutional, or governmental use structures outside of dwellings and townhouses, as defined by the USBC.

The residential building classification includes but is not limited to the functions carried out by the following specialties for contracts of dwellings and townhouses, as defined by the USBC, and related accessory use buildings or structures:

Concrete contracting

Home improvement contracting

Industrialized building contracting

Landscape service contracting

Masonry contracting

Painting and wallcovering contracting

Roofing contracting

Swimming pool contracting

"Specialty contractors" means those individuals contractors whose contracts are for specialty services that do not generally fall within the scope of any other classification within this chapter.

18VAC50-22-30. Definitions of specialty services.

The following words and terms when used in this chapter unless a different meaning is provided or is plainly required by the context shall have the following meanings unless a different meaning is provided or is plainly required by the context:

"Accessibility services contracting" (Abbr: ASC) means the service that provides for all work in connection with the constructing, installing, altering, servicing, repairing, testing, or maintenance of wheelchair lifts, incline chairlifts, dumbwaiters with a capacity limit of 300 pounds, and private residence elevators in accordance with the Virginia Uniform Statewide Building Code (13VAC5-63). The EEC specialty may also perform this work. This specialty does not include work on limited use-limited application (LULA) elevators.

"Accessibility services contracting - LULA" (Abbr: ASL) means the service that provides for all work in connection with the constructing, installing, altering, servicing, repairing, testing, or maintenance of wheelchair lifts, incline chairlifts, dumbwaiters with a capacity limit of 300 pounds, private residence elevators, and limited use-limited application (LULA) elevators in accordance with the Virginia Uniform Statewide Building Code (13VAC5-63). The EEC specialty may also perform this work.

"Alternative energy system contracting" (Abbr: AES) means the service that provides for the installation, repair, or improvement, from the customer's meter, of alternative energy generation systems, supplemental energy systems and associated equipment annexed to real property. This service does not include the installation of emergency generators powered by fossil fuels. No other classification or specialty service provides this function. This specialty does not provide for electrical, plumbing, gas fitting, or HVAC functions.

"Alternative sewage disposal system contracting" (Abbr: ADS) means the service that provides for the installation, repair, improvement, or removal of a treatment works that is not a conventional onsite sewage system and does not result in a point source discharge. No other classification or specialty service provides this function.

"Asbestos contracting" (Abbr: ASB) means the service that provides for the installation, removal, or encapsulation of asbestos containing materials annexed to real property. No other classification or specialty service provides for this function.

"Asphalt paving and sealcoating contracting" (Abbr: PAV) means the service that provides for the installation, repair, improvement, or removal of asphalt paving or sealcoating, or both, on subdivision streets and adjacent intersections, driveways, parking lots, tennis courts, running tracks, and play areas, using materials and accessories common to the industry. This includes height adjustment of existing sewer manholes, storm drains, water valves, sewer cleanouts and drain grates, and all necessary excavation and grading. The H/H classification also provides for this function.

"Billboard/sign contracting" (Abbr: BSC) means the service that provides for the installation, repair, improvement, or dismantling of any billboard or structural sign permanently annexed to real property. H/H and CBC are the classifications that can perform this work except that a contractor in this specialty may connect or disconnect signs to existing electrical circuits. No trade related plumbing, electrical, or HVAC work is included in this function.

"Blast/explosive contracting" (Abbr: BEC) means the service that provides for the use of explosive charges for the repair, improvement, alteration, or demolition of any real property or any structure annexed to real property. No other classification or specialty service provides this function.

"Commercial improvement contracting" (Abbr: CIC) means the service that provides for repair or improvement to structures not defined as dwellings and townhouses in the USBC. The CBC classification also provides for this function. The CIC specialty does not provide for the construction of new buildings, accessory buildings, electrical, plumbing, HVAC, or gas work.

"Concrete contracting" (Abbr: CEM) means the service that provides for all work in connection with the processing, proportioning, batching, mixing, conveying, and placing of concrete composed of materials common to the concrete industry. This includes finishing, coloring, curing, repairing, testing, sawing, grinding, grouting, placing of film barriers, sealing, and waterproofing. Construction and assembling of forms, molds, slipforms, and pans, centering, and the use of rebar are also included. The CBC, RBC, and H/H classifications also provide for this function.

"Conventional sewage disposal system contracting" (Abbr: CDS) means the service that provides for the installation, repair, improvement, or removal of a treatment works consisting of one or more septic tanks with gravity, pumped, or siphoned conveyance to a gravity distributed subsurface drainfield. The ADS specialty may also perform this work.

"Drug lab remediation contracting" (Abbr: DLR) means the service that provides for the cleanup, treatment, containment, or removal of hazardous substances at or in a property formerly used to manufacture methamphetamine or other drugs and may include demolition or disposal of structures or other property. No other classification or specialty provides for this function.

"Drywall contracting" (Abbr: DRY) means the service that provides for the installation, taping, and finishing of drywall, panels and assemblies of gypsum wallboard, sheathing, and cementitious board, and the installation of studs made of sheet metal for the framing of ceilings and nonstructural partitioning. The CBC and RBC classifications and HIC and CIC specialties also provide for this function.

"Electronic/communication service contracting" (Abbr: ESC) means the service that provides for the installation, repair, improvement, or removal of electronic or communications systems annexed to real property including telephone wiring, computer cabling, sound systems, data links, data and network installation, television and cable TV wiring, antenna wiring, and fiber optics installation, all of which or other systems that operate at 50 volts or less. A firm holding an ESC license is responsible for meeting all applicable tradesman licensure standards. The ELE classification also provides for this function.

"Elevator/escalator contracting" (Abbr: EEC) means the service that provides for the installation, repair, improvement, or removal of elevators or escalators permanently annexed to real property. A firm holding an EEC license is responsible for meeting all applicable individual license and certification regulations. No other classification or specialty service provides for this function.

"Environmental monitoring well contracting" (Abbr: EMW) means the service that provides for the construction of a well to monitor hazardous substances in the ground. The H/H classification and WWP specialty also provides for this function.

"Environmental specialties contracting" (Abbr: ENV) means the service that provides for installation, repair, removal, or improvement of pollution control and remediation devices. No other specialty provides for this function. This specialty does not provide for electrical, plumbing, gas fitting, or HVAC functions. The H/H classification also provides for this function.

"Equipment/machinery contracting" (Abbr: EMC) means the service that provides for the installation or removal of equipment or machinery, including conveyors or heavy machinery. Boilers exempted by the Virginia Uniform Statewide Building Code (13VAC5-63) but regulated by the Department of Labor and Industry are also included in this specialty. This specialty does not provide for any electrical, plumbing, process piping, or HVAC functions.

"Farm improvement contracting" (Abbr: FIC) means the service that provides for the installation, repair, or improvement of a nonresidential farm building or structure, or nonresidential farm accessory-use structure, or additions thereto. The CBC and RBC classification also provides for this function. The FIC specialty does not provide for any electrical, plumbing, HVAC, or gas fitting functions.

"Finish carpentry contracting" (Abbr: FIN) means the service that provides for the installation, repair, and finishing of cabinets, sash casing, door casing, wooden flooring, baseboards, countertops, and other millwork. Finish carpentry does not include the installation of ceramic tile, marble, and artificial or cultured stone. The CBC and RBC classifications and HIC and CIC specialties also provide for this function.

"Fire alarm systems contracting" (Abbr: FAS) means the service that provides for the installation, repair, or improvement of fire alarm systems that operate at 50 volts or less. The ELE classification also provides for this function. A firm with an FAS license is responsible for meeting all applicable tradesman licensure standards.

"Fire sprinkler contracting" (Abbr: SPR) means the service that provides for the installation, repair, alteration, addition, testing, maintenance, inspection, improvement, or removal of sprinkler systems using water as a means of fire suppression when annexed to real property. This specialty does not provide for the installation, repair, or maintenance of other types of fire suppression systems. The PLB classification allows for the installation of systems permitted to be designed in accordance with the plumbing provisions of the USBC. This specialty may engage in the installation of backflow prevention devices in the fire sprinkler supply main and incidental to the sprinkler system installation when the installer has received formal vocational training approved by the board that included instruction in the installation of backflow prevention devices.

"Fire suppression contracting" (Abbr: FSP) means the service that provides for the installation, repair, improvement, or removal of fire suppression systems including halon and other gas systems, dry chemical systems, and carbon dioxide systems annexed to real property. No other classification provides for this function. The FSP specialty does not provide for the installation, repair, or maintenance of water sprinkler systems.

"Flooring and floor covering contracting" (Abbr: FLR) means the service that provides for the installation, repair, improvement, or removal of materials that are common in the flooring industry. This includes wood and wood composite flooring, tack strips or other products used to secure carpet, vinyl and linoleum, ceramic, marble, stone, and all other types of tile, and includes the installation or replacement of subflooring, leveling products, or other materials necessary to facilitate the installation of the flooring or floor covering. This does not include the installation, repair, or removal of floor joists or other structural components of the flooring system. The CBC and RBC classifications and HIC and CIC specialties also provide for this function.

"Framing subcontractor contractor" (Abbr: FRM) means the service which, while serving in the role of a subcontractor to a licensed prime contractor, that provides for the construction, removal, repair, or improvement to any framing or rough carpentry necessary for the construction of framed structures, including the installation and repair of individual components of framing systems. The CBC and RBC classifications and HIC and CIC specialties also provide for this function.

"Gas fitting contracting" (Abbr: GFC) means the service that provides for the installation, repair, improvement, or removal of gas piping and appliances annexed to real property. A firm holding a GFC license is responsible for meeting all applicable individual (tradesman) licensure regulations.

"Glass and glazing contracting" (Abbr: GLZ) means the service that provides for the installation, assembly, repair, improvement, or removal of all makes and kinds of glass, glass work, mirrored glass, and glass substitute for glazing; executes the fabrication and glazing of frames, panels, sashes and doors; or installs these items in any structure. This specialty includes the installation of standard methods of weatherproofing, caulking, glazing, sealants, and adhesives. The CBC and RBC classifications and HIC and CIC specialties also provide for this function.

"Home improvement contracting" (Abbr: HIC) means the service that provides for repairs or improvements to dwellings and townhouses as defined in the USBC or structures annexed to those dwellings or townhouses as defined in the USBC. The RBC classification also provides for this function. The HIC specialty does not provide for electrical, plumbing, HVAC, or gas fitting functions. It does not include new construction functions beyond the existing building structure other than decks, patios, driveways, and utility out buildings that do not require a permit per the USBC.

"Industrialized building contracting" (Abbr: IBC) means the service that provides for the installation or removal of an industrialized building as defined in the Virginia Industrialized Building Safety Regulations (13VAC5-91). This classification covers foundation work in accordance with the provisions of the Virginia Uniform Statewide Building Code (13VAC5-63) and allows the licensee to complete internal tie-ins of plumbing, gas, electrical, and HVAC systems. It does not allow for installing additional plumbing, gas, electrical, or HVAC work such as installing the service meter, or installing the outside compressor for the HVAC system. The CBC and RBC classifications also provide for this function.

"Insulation and weather stripping contracting" (Abbr: INS) means the service that provides for the installation, repair, improvement, or removal of materials classified as insulating media used for the sole purpose of temperature control or sound control of residential and commercial buildings. It does not include the insulation of mechanical equipment and ancillary lines and piping. The CBC and RBC classifications and HIC and CIC specialties also provide for this function.

"Landscape irrigation contracting" (Abbr: ISC) means the service that provides for the installation, repair, improvement, or removal of irrigation sprinkler systems or outdoor sprinkler systems. The PLB and H/H classifications also provide for this function. This specialty may install backflow prevention devices incidental to work in this specialty when the installer has received formal vocational training approved by the board that included instruction in the installation of backflow prevention devices.

"Landscape service contracting" (Abbr: LSC) means the service that provides for the alteration or improvement of a land area not related to any other classification or service activity by means of excavation, clearing, grading, construction of retaining walls for landscaping purposes, or placement of landscaping timbers. This specialty may remove stumps and roots below grade. The CBC, RBC, and H/H classifications and the CIC and HIC specialties also provide for this function.

"Lead abatement contracting" (Abbr: LAC) means the service that provides for the removal or encapsulation of lead-containing materials annexed to real property. No other classification or specialty service provides for this function, except that the PLB and HVA classifications may provide this service incidental to work in those classifications.

"Liquefied petroleum gas contracting" (Abbr: LPG) means the service that includes the installation, maintenance, extension, alteration, or removal of all piping, fixtures, appliances, and appurtenances used in transporting, storing, or utilizing liquefied petroleum gas. This excludes hot water heaters, boilers, and central heating systems that require an HVA or PLB license. The GFC specialty also provides for this function. A firm holding an LPG license is responsible for meeting all applicable individual license and certification regulations.

"Manufactured home contracting" (Abbr: MHC) means the service that provides for the installation or removal of a manufactured home as defined in the Virginia Manufactured Home Safety Regulations (13VAC5-95). This classification does not cover foundation work; however, it does allow installation of piers covered under HUD regulations. It does allow a licensee to do internal tie-ins of plumbing, gas, electrical, or HVAC equipment. It does not allow for installing additional plumbing, gas, electrical, or HVAC work such as installing the service meter or installing the outside compressor for any components of the HVAC system. No other specialty provides for this function.

"Marine facility contracting" (Abbr: MCC) means the service that provides for the construction, repair, improvement, or removal of any structure the purpose of which is to provide access to, impede, or alter a body of surface water. The CBC and H/H classifications also provide for this function. The MCC specialty does not provide for the construction of accessory structures or electrical, HVAC, or plumbing functions.

"Masonry contracting" (Abbr: BRK) means the service that includes the installation of brick, concrete block, stone, marble, slate, or other units and products common to the masonry industry, including mortarless type masonry products. This includes installation of grout, caulking, tuck pointing, sand blasting, mortar washing, parging, and cleaning and welding of reinforcement steel related to masonry construction. The CBC and, RBC, and H/H classifications and the HIC and CIC specialties also provide for this function.

"Miscellaneous contracting" (Abbr: MSC) means the service that may fall under another classification or specialty service but is more limited than the functions provided by the other classification or specialty. This specialty is limited to a single activity and will be restricted to that specialty only. This specialty may not be used for work that would fall under the ELE, HVA, PLB, GFC, LPG, NGF, EEC, WWP, ASC, LAC, or ASB classification or specialty. Contractors applying for the MSC specialty will have their applications reviewed by the Board for Contractors.

"Natural gas fitting provider contracting" (Abbr: NGF) means the service that provides for the incidental repair, testing, or removal of natural gas piping or fitting annexed to real property. This does not include new installation of gas piping for hot water heaters, boilers, central heating systems, or other natural gas equipment that requires an HVA or PLB license. The GFC specialty also provides for this function. A firm holding an NGF license is responsible for meeting all applicable individual license and certification regulations.

"Painting and wallcovering contracting" (Abbr: PTC) means the service that provides for the application of materials common to the painting and decorating industry for protective or decorative purposes, the installation of surface coverings such as vinyls, wall papers, and cloth fabrics. This includes surface preparation, caulking, sanding, and cleaning preparatory to painting or coverings and includes both interior and exterior surfaces. The CBC and RBC classifications and the HIC and CIC specialties also provide for this function.

"Radon mitigation contracting" (Abbr: RMC) means the service that provides for additions, repairs, or improvements to buildings or structures, for the purpose of mitigating or preventing the effects of radon gas. No electrical, plumbing, gas fitting, or HVAC functions are provided by this specialty.

"Recreational facility contracting" (Abbr: RFC) means the service that provides for the construction, repair, or improvement of any recreational facility, excluding paving and the construction of buildings, plumbing, electrical, and HVAC functions. The CBC classification and H/H classifications also provides for this function.

"Refrigeration contracting" (Abbr: REF) means the service that provides for installation, repair, or removal of any refrigeration equipment (excluding HVAC equipment). No electrical, plumbing, gas fitting, or HVAC functions are provided by this specialty. This specialty is intended for those contractors who repair or install coolers, refrigerated casework, ice-making machines, drinking fountains, cold room equipment, and similar hermetic refrigeration equipment. The HVA classification also provides for this function.

"Roofing contracting" (Abbr: ROC) means the service that provides for the installation, repair, removal, or improvement of materials common to the industry that form a watertight, weather resistant surface for roofs and decks. This includes roofing system components when installed in conjunction with a roofing project, application of dampproofing or waterproofing, and installation of roof insulation panels and other roof insulation systems above roof deck. The CBC and RBC classifications and the HIC and CIC specialties also provide for this function.

"Steel erection contracting" (Abbr: STL) means the service that provides for the fabrication and erection of structural steel shapes and plates, regardless of shape or size, to be used as structural members, or tanks, including any related riveting, welding, and rigging. This specialty includes the fabrication, placement and tying of steel reinforcing bars (rods), and post-tensioning to reinforce concrete buildings and structures. The CBC and, RBC, and H/H classifications and HIC and CIC specialties also provide for this function.

"Swimming pool construction contracting" (Abbr: POL) means the service that provides for the construction, repair, improvement, or removal of in-ground swimming pools. The CBC and, RBC, and H/H classifications and the RFC specialty also provide for this function. No trade related plumbing, electrical, backflow, or HVAC work is included in this specialty.

"Tile, marble, ceramic, and terrazzo contracting" (Abbr: TMC) means the service that provides for the preparation, fabrication, construction, and installation of artificial marble, burned clay tile, ceramic, terrazzo, encaustic, faience, quarry, semi-vitreous, cementitious board, and other tile, excluding hollow or structural partition tile. The CBC and RBC classifications and HIC and CIC specialties also provide for this function.

"Underground utility and excavating contracting" (Abbr: UUC) means the service that provides for the construction, repair, improvement, or removal of main sanitary sewer collection systems, main water distribution systems, storm sewer collection systems, and the continuation of utility lines from the main systems to a point of termination up to and including the meter location for the individual occupancy, sewer collection systems at property line, or residential or single-occupancy commercial properties, or on multi-occupancy properties at manhole or wye lateral extend to an invert elevation as engineered to accommodate future building sewers, water distribution systems, or storm sewer collection systems at storm sewer structures water, gas, and sewer connections to residential, commercial, and industrial sites, subject to local ordinances. This specialty may install empty underground conduits in rights-of way, easements, platted rights-of-way in new site development, and sleeves for parking lot crossings if each conduit system does not include installation of any conductor wiring or connection to an energized electrical system. The H/H classification also provides for this function.

"Vessel construction contracting" (Abbr: VCC) means the service that provides for the construction, repair, improvement, or removal of nonresidential vessels, tanks, or piping that hold or convey fluids other than sanitary, storm, waste, or potable water supplies. The H/H classification also provides for this function.

"Water well/pump contracting" (Abbr: WWP) means the service that provides for the installation of a water well system, including geothermal wells, which includes construction of a water well to reach groundwater, as defined in § 62.1-255 of the Code of Virginia, and the installation of the well pump and tank, including pipe and wire, up to and including the point of connection to the plumbing and electrical systems. No other classification or specialty service provides for construction of water wells. This regulation shall not exclude the PLB, ELE, or HVA classification from installation of pumps and tanks.

Note: Specialty contractors engaging in construction that involves the following activities or items or similar activities or items may fall under the CIC, HIC, and FIC specialty services, or they may fall under the CBC or RBC classification.

Appliances

Fences

Railings

Awnings

Fiberglass

Rigging

Blinds

Fireplaces

Rubber linings

Bulkheads

Fireproofing

Sandblasting

Carpeting

Fixtures

Scaffolding

Ceilings

Grouting

Screens

Chimneys

Guttering

Shutters

Chutes

Interior decorating

Siding

Curtains

Lubrication

Skylights

Curtain walls

Metal work

Storage bins and lockers

Decks

Millwrighting

Stucco

Doors

Mirrors

Vaults

Drapes

Miscellaneous iron

Wall panels

Epoxy

Ornamental iron

Waterproofing

Exterior decoration

Partitions

Windows

Facings

Protective coatings

18VAC50-22-90. Past due recovery fund assessments.

No license shall will be issued to an applicant whose previous license or registration was suspended for nonpayment of a Virginia Contractor Transaction Recovery Fund assessment until all past-due assessments have been paid.

18VAC50-22-100. Fees.

Each check or money order shall must be made payable to the Treasurer of Virginia. All fees required by the board are nonrefundable. In the event that a check, money draft, or similar instrument for payment of a fee required by statute or regulation is not honored by the bank or financial institution named, the applicant or regulant shall will be required to remit fees sufficient to cover the original fee, plus an additional processing charge set by the department:

Fee Type

When Due

Amount Due

Class C Initial License

with license application

$210

Class B Initial License

with license application

$345

Class A Initial License

with license application

$360

Temporary License

with license application and applicable initial license fee

$50

Residential Building Energy Analyst Firm License

with license application

$210

Qualified Individual Exam Fee

with exam application

$20

Class B Exam Fee

with exam application ($20 per section)

$40

Class A Exam Fee

with exam application ($20 per section)

$60

Change of Designated Employee

with change application

$110

Change of Qualified Individual

with change application

$110

Addition of Classification or Specialty

with addition application

$110

Note: A In accordance with § 54.1-1119 of the Code of Virginia, a $25 Recovery Fund assessment is also required with each initial license application, except for the residential building energy analyst firm license. If the applicant does not meet all requirements and does not become licensed, this assessment will be refunded. The examination fees approved by the board but administered by another governmental agency or organization shall be determined by that agency or organization. No Recovery Fund assessment is required for residential building energy analyst firm license, change of designated employee, change of qualified individual, or addition of classification or specialty.

18VAC50-22-110. Renewal required.

Licenses issued under this chapter shall will expire two years from the last day of the month in which they were issued, as indicated on the license.

18VAC50-22-120. Procedures for renewal.

The Department of Professional and Occupational Regulation will mail a notice of renewal to the licensee at the last known address of record. Failure to receive this notice shall does not relieve the licensee of the obligation to renew. If the licensee does not receive the notice of renewal, a copy of the license may be substituted with the required fee.

18VAC50-22-130. Qualifications for renewal.

A. The license holder's completed renewal form and appropriate fees must be received within 30 days of the license expiration date in order to renew the license. Licenses are not valid during the 30-day grace period. Applications and fees received after the 30-day period will be processed in accordance with Part IV (18VAC50-22-160 et seq.) of this chapter.

B. Applicants for renewal of a Class C license shall must continue to meet all of the qualifications for licensure set forth in 18VAC50-22-40. Applicants for renewal of a Class B license shall must continue to meet all of the qualifications for licensure set forth in 18VAC50-22-50. Applicants for renewal of a Class A license shall must continue to meet all of the qualifications for licensure set forth in 18VAC50-22-60.

C. Applicants for renewal of a residential building energy analyst firm license shall must continue to meet all of the qualifications for licensure set forth in 18VAC50-22-62 and shall submit proof of insurance as required in 18VAC50-22-62 C.

18VAC50-22-140. Renewal fees.

Each check or money order should must be made payable to the Treasurer of Virginia. All fees required by the board are nonrefundable.

In the event that a check, money draft, or similar instrument for payment of a fee required by statute or regulation is not honored by the bank or financial institution named, the applicant or regulant shall will be required to remit fees sufficient to cover the original fee, plus an additional processing charge set by the department:

Fee Type

When Due

Amount Due

Class C renewal

with renewal application

$195

Class B renewal

with renewal application

$225

Class A renewal

with renewal application

$240

Residential Building Energy Analyst Firm renewal

with renewal application

$195

The date on which the renewal fee is received by the Department of Professional and Occupational Regulation or its agent shall will determine whether the licensee is eligible for renewal or must apply for reinstatement.

For renewal fees received on or before August 31, 2025, the fees shall will be $150 for a Class C renewal, $175 for a Class B renewal, $200 for a Class A renewal, and $150 for a Residential Building Energy Analyst Firm renewal.

18VAC50-22-150. Board discretion to deny renewal.

A. The board may deny renewal of a license for the same reasons as it may refuse initial licensure or discipline a licensee. The licensee has a right to appeal any such action by the board under the Administrative Process Act (§ 9-6.14:1 (§ 2.2-4000 et seq. of the Code of Virginia).

B. Failure to timely pay any monetary penalty, reimbursement of cost, or other fee assessed by consent order or final order may result in delaying or withholding services provided by the department, such as, but not limited to, renewal, reinstatement, processing a new application, or exam administration.

18VAC50-22-160. Reinstatement required.

Should the Department of Professional and Occupational Regulation fail to receive A. If all requirements for renewal of a license holder's renewal form and appropriate fees as specified in 18VAC50-22-130 are not completed within 30 days of the license expiration date, the licensee shall will be required to reinstate the license. Applicants for reinstatement of a Class C license shall meet the requirements of 18VAC50-22-130 by meeting all renewal requirements and by paying the reinstatement fee specified in 18VAC50-22-170. Applicants for reinstatement of a Class B license shall continue to meet the qualifications for licensure set forth in 18VAC50-22-50. Applicants for reinstatement of a Class A license shall continue to meet all the qualifications for licensure set forth in 18VAC50-22-60. Applicants for reinstatement of a residential building energy analyst firm license shall continue to meet all of the qualifications for licensure set forth in 18VAC50-22-62 and shall submit proof of insurance as required in 18VAC50-22-62 C.

B. A license may be reinstated for up to 24 months following the expiration date. After 24 months, the license may not be reinstated and the firm must meet all current entry requirements and apply as a new applicant.

C. Any regulated activity conducted subsequent to the license expiration date may constitute unlicensed activity and be subject to prosecution under Chapter 1 (§ 54.1-100 et seq.) and Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia.

18VAC50-22-170. Reinstatement fees.

Each check or money order should must be made payable to the Treasurer of Virginia. All fees required by the board are nonrefundable. In the event that a check, money draft, or similar instrument for payment of a fee required by statute or regulation is not honored by the bank or financial institution named, the applicant or regulant shall will be required to remit fees sufficient to cover the original fee, plus an additional processing charge set by the department:

Fee Type

When Due

Amount Due

Class C reinstatement

with reinstatement application

$405*

Class B reinstatement

with reinstatement application

$460*

Class A reinstatement

with reinstatement application

$490*

Residential Building Energy Analyst Firm reinstatement

with reinstatement application

$405*

*Includes renewal fee listed in 18VAC50-22-140.

The date on which the reinstatement fee is received by the Department of Professional and Occupational Regulation or its agent shall will determine whether the licensee is eligible for reinstatement or must apply for a new license and meet the entry requirements in place at the time of that application. In order to ensure that licensees are qualified to practice as contractors, no reinstatement will be permitted once two years from the expiration date of the license have passed.

For reinstatement fees received on or before August 31, 2025, the fees shall will be $360 for Class C reinstatement, $410 for Class B reinstatement, $450 for Class A reinstatement, and $360 for a Residential Building Energy Analyst Firm. These fees include the renewal fee listed in 18VAC50-22-140.

18VAC50-22-180. Status of licensee during the period prior to reinstatement.

A. When a license is reinstated, the licensee shall will continue to have the same license number and shall be assigned an expiration date two years from the previous expiration date of the license.

B. A contractor who reinstates his a license shall be regarded as having been continuously licensed without interruption. Therefore:

1. The contractor shall will remain under the disciplinary authority of the board during this entire period and may be held accountable for his activities during this period.

2. A consumer who contracts with a contractor during the period between the expiration of the license and the reinstatement of the license shall will not be prohibited from making a claim on the Virginia Contractor Transaction Recovery Fund.

A contractor who fails to reinstate his license shall will be regarded as unlicensed from the expiration date of the license forward.

Nothing in this chapter shall will divest the board of its authority to discipline a contractor for a violation of the law or regulations during the period of time for which the contractor was licensed.

C. A residential building energy analyst firm that reinstates its license shall will be regarded as having been continuously licensed without interruption and shall remain under the disciplinary authority of the board during this entire period and may be held accountable for its activities during this period.

18VAC50-22-190. Board discretion to deny reinstatement.

A. The board may deny reinstatement of a license for the same reasons as it may refuse initial licensure or discipline a licensee. The licensee has a right to appeal any such action by the board under the Administrative Process Act (§ 9-6.14:1 (§ 2.2-4000 et seq. of the Code of Virginia).

B. Failure to timely pay any monetary penalty, reimbursement of cost or other fee assessed by consent order or final order shall result in delaying or withholding services provided by the department, such as, but not limited to, renewal, reinstatement, processing of a new application, or exam administration.

18VAC50-22-200. Remedial education, revocation or suspension; fines.

The board may require impose remedial education, and a monetary penalty in accordance with § 54.1-202 A of the Code of Virginia or revoke or suspend a any license or fine a licensee when a licensee has been found to have violated or cooperated with others in violating any provision of the regulations of the board or Chapter 1 (§ 54.1-100 et seq.) or Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia, or any regulation of the board.

18VAC50-22-210. Change of business entity requires a new license.

Licenses are issued to firms as defined in this chapter and are not transferable. Whenever the legal business entity holding the license is dissolved or altered to form a new business entity, the original license becomes void and shall be returned to the board within 30 days of the change. Additionally, the firm shall must apply for a new license, on a form provided by the board, within 30 days of the change in the business entity. Such changes include but are not limited to:

1. Death of a sole proprietor;

2. Death or withdrawal of a general partner in a general partnership or the managing partner in a limited partnership; and

3. Conversion, formation, Formation or dissolution of a corporation, a limited liability company, or an association or any other business entity recognized under the laws of the Commonwealth of Virginia.

18VAC50-22-220. Change of responsible management, designated employee, or qualified individual.

A. Any change in the officers principals of a corporation, managers of a limited liability company, or officers or directors of an association shall must be reported to the board in writing within 120 days of the change.

B. Any change of designated employee shall must be reported on a form provided by the board within 120 days of the change. The new designated employee for a Class B licensee shall must meet the requirements of 18VAC50-22-50 B. The new designated employee for a Class A licensee shall must meet the requirements of 18VAC50-22-60 B. More than one individual associated with a single firm may complete the examination requirements necessary for eligibility as the designated employee.

C. Any change of qualified individual shall must be reported on a form provided by the board within 45 60 days of the change. The new qualified individual for a Class C licensee shall must meet the requirements of 18VAC50-22-40 B. The new qualified individual for a Class B licensee shall must meet the requirements of 18VAC50-22-50 C. The new qualified individual for a Class A licensee shall must meet the requirements of 18VAC50-22-60 C.

18VAC50-22-230. Change of name or address.

A. A licensee must operate under the name in which the license is issued. Any name change shall must be reported in writing to the board within 30 days of the change. The board shall will not be responsible for the licensee's failure to receive notices or correspondence due to the licensee's not having reported a change of name.

B. Any change of the address of record or principal place of business shall must be reported in writing to the board within 30 days of the change. The board shall will not be responsible for the licensee's failure to receive notices or correspondence due to the licensee's not having reported a change of address.

18VAC50-22-240. Deletion or addition of a classification or specialty.

A. A licensee wishing to delete a classification or specialty from its license shall must notify the board in writing. If a licensee has only one classification or specialty, deletion of that classification or specialty will result in termination of the license.

B. A licensee wishing to add a classification or specialty to its license shall must complete a form provided by the board. A Class C licensee seeking an additional classification or specialty shall must meet the requirements of 18VAC50-22-40 B for the new classification or specialty. A Class B licensee seeking an additional classification or specialty shall must meet the requirements of 18VAC50-22-50 C for the new classification or specialty. A Class A licensee seeking an additional classification or specialty shall must meet the requirements of 18VAC50-22-60 C for the new classification or specialty.

18VAC50-22-250. Fees. (Repealed.)

Each check or money order should be made payable to the Treasurer of Virginia. All fees required by the board are nonrefundable. In the event that a check, money draft, or similar instrument for payment of a fee required by statute or regulation is not honored by the bank or financial institution named, the applicant or regulant shall be required to remit fees sufficient to cover the original fee, plus an additional processing charge set by the department:

Fee Type

When Due

Amount Due

Change of Designated Employee

with change form

$110

Change of Qualified Individual

with change form

$110

Addition of Classification or Specialty

with addition application

$110

18VAC50-22-260. Filing of charges; prohibited acts.

A. All complaints against contractors and residential building energy analyst firms may be filed with the Department of Professional and Occupational Regulation at any time during business hours, pursuant to § 54.1-1114 of the Code of Virginia.

B. The following acts are prohibited acts:

1. Failure in any material way to comply with provisions of Chapter 1 (§ 54.1-100 et seq.) or Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia or the regulations of the board.

2. Furnishing substantially inaccurate or incomplete information to the board in obtaining, renewing, reinstating, or maintaining a license.

3. Failure of the responsible management, designated employee, or qualified individual to report to the board, in writing, the suspension or revocation of a contractor license by another state or conviction in a court of competent jurisdiction of a building code violation.

4. Publishing or causing to be published any advertisement relating to contracting that contains an assertion, representation, or statement of fact that is false, deceptive, or misleading.

5. Negligence or incompetence in the practice of contracting or residential building energy analyses.

6. Misconduct in the practice of contracting or residential building energy analyses.

7. A finding of improper or dishonest conduct in the practice of contracting by a court of competent jurisdiction or by the board.

8. Failure of all those who engage in residential contracting, excluding subcontractors to the contracting parties and those who engage in routine maintenance or service contracts, to make use of a legible written contract clearly specifying the terms and conditions of the work to be performed. For the purposes of this chapter, residential contracting means construction, removal, repair, or improvements to single-family or multiple-family residential buildings, including accessory-use structures as defined in § 54.1-1100 of the Code of Virginia. Prior to commencement of work or acceptance of payments, the contract shall be signed by both the consumer and the licensee or the licensee's agent.

9. Failure of those engaged in residential contracting as defined in this chapter to comply with the terms of a written contract that contains the following minimum requirements:

a. When work is to begin and the estimated completion date;

b. A statement regarding total cost of the project with regards to the type of contract being specified:

(1) Standard total value project: a statement of the total cost of the project;

(2) Cost plus: a statement identifying the type of cost-plus contract, fee or percentage, and a cap that the total dollar amount cannot exceed; or

(3) Time and materials: a fixed price for labor that includes wages, overhead, general and administrative costs, and cost of materials;

c. The amounts and schedule for progress payments, including a specific statement on the amount of the down payment;

d. A listing of specified materials and work to be performed, which is specifically requested by the consumer;

e. A "plain-language" exculpatory clause concerning events beyond the control of the contractor and a statement explaining that delays caused by such events do not constitute abandonment and are not included in calculating timeframes for payment or performance;

f. A statement of assurance that the contractor will comply with all local requirements for building permits, inspections, and zoning;

g. Disclosure of the cancellation rights of the parties;

h. For contracts resulting from a door-to-door solicitation, a A signed acknowledgment by the consumer that the consumer has been provided with and read the Department of Professional and Occupational Regulation statement of protection available to consumers through the Board for Contractors;

i. Contractor's name, address, license number, class of license, and classifications or specialty services;

j. A statement providing that any modification to the contract that changes the cost, materials, work to be performed, or estimated completion date must be in writing and signed by all parties; and

k. Effective with all new contracts entered into after July 1, 2015, a A statement notifying consumers of the existence of the Virginia Contractor Transaction Recovery Fund that includes information on how to contact the board for claim information.

10. Failure to make prompt delivery to the consumer before commencement of work of a fully executed copy of the contract as described in subdivisions 8 and 9 of this subsection for construction or contracting work.

11. Failure of the contractor to maintain for a period of five years from the date of contract a complete and legible copy of all documents relating to that contract, including the contract and any addenda or change orders.

12. Refusing or failing, upon request, to produce to the board, or any of its agents, any document, book, record, or copy of it in the licensee's possession concerning a transaction covered by this chapter or for which the licensee is required to maintain records.

13. Failing to respond to an agent of the board or providing false, misleading, or incomplete information to an investigator seeking information in the investigation of a complaint filed with the board against the contractor. Failing or refusing to claim certified mail sent to the licensee's address of record shall constitute a violation of this regulation.

14. Abandonment, defined as the unjustified cessation of work under the contract for a period of 30 days or more.

15. The intentional and unjustified failure to complete work contracted for or to comply with the terms in the contract.

16. The retention or misapplication of funds paid, for which work is either not performed or performed only in part.

17. Making any misrepresentation or making a false promise that might influence, persuade, or induce.

18. Assisting another to violate any provision of Chapter 1 (§ 54.1-100 et seq.) or Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia, or this chapter or combining or conspiring with or acting as agent, partner, or associate for another.

19. Allowing a firm's license to be used by another.

20. Acting as or being an ostensible licensee for undisclosed persons who do or will control or direct, directly or indirectly, the operations of the licensee's business.

21. Action by the firm, responsible management as defined in this chapter, designated employee, or qualified individual to offer, give, or promise anything of value or benefit to any federal, state, or local employee for the purpose of influencing that employee to circumvent, in the performance of the employee's duties, any federal, state, or local law, regulation, or ordinance governing the construction industry.

22. Where the firm, responsible management as defined in this chapter, designated employee, or qualified individual has been convicted or found guilty, after initial licensure, regardless of adjudication, in any jurisdiction, of any felony or non-marijuana misdemeanor, there being no appeal pending therefrom or the time of appeal having elapsed. Any plea of guilty or nolo contendere shall be considered a conviction for the purposes of this subdivision. The record of a conviction received from a court shall be accepted as prima facie evidence of a conviction or finding of guilt.

23. Failure to inform the board in writing, within 30 days, that the firm, a member of responsible management as defined in this chapter, its designated employee, or its qualified individual has pleaded guilty or nolo contendere or was convicted and found guilty of any felony or of a Class 1 misdemeanor or any non-marijuana misdemeanor conviction for activities carried out while engaged in the practice of contracting.

24. Having been disciplined by any county, city, town, or any state or federal governing body, including action by the Virginia Department of Health, which action shall be reviewed by the board before it takes any disciplinary action of its own.

25. Failure to abate a violation of the Virginia Uniform Statewide Building Code (13VAC5-63).

26. Failure of a contractor to comply with the notification requirements of the Virginia Underground Utility Damage Prevention Act, Chapter 10.3 (§ 56-265.14 et seq.) of Title 56 of the Code of Virginia (Miss Utility).

27. Practicing in a classification, specialty service, or class of license for which the contractor is not licensed.

28. Failure to satisfy any judgments.

29. Contracting with an unlicensed or improperly licensed contractor or subcontractor in the delivery of contracting services.

30. Failure to honor the terms and conditions of a warranty.

31. Failure to obtain written change orders, which are signed by both the consumer and the licensee or the licensee's agent, to an already existing contract.

32. Failure to ensure that supervision, as defined in this chapter, is provided to all helpers and laborers assisting licensed tradesman.

33. Failure to obtain a building permit or applicable inspection, where required.

34. Failure of a residential building energy analyst firm to ensure that residential building energy analyses conducted by the firm are consistent with the requirements set forth by the board, the U.S. Environmental Protection Agency, the U.S. Department of Energy, or the Energy Star Program.

35. Failure of a residential building energy analyst firm to maintain the general liability insurance required in 18VAC50-22-62 C at any time while licensed by the board.

36. Failure of a contractor holding the drug lab remediation specialty to ensure that remediation work conducted by the firm or properly licensed subcontractors is consistent with the guidelines set forth by the U.S. Environmental Protection Agency, Virginia Department of Environmental Quality, Virginia Department of Health, or Virginia Department of Forensic Science.

37. Failure of a contractor to appropriately classify all workers as employees or as independent contractors as provided by law.

18VAC50-22-300. Prelicense education courses.

All courses offered by prelicense education providers must be approved by the board prior to the initial offering of the course, and shall cover business principles related to the standards of conduct found in 18VAC50-22-260 B and other applicable requirements of continued licensure set forth in this chapter. Courses must be eight six hours in length. Correspondence and other distance learning courses must include appropriate testing procedures to verify completion of the course.

18VAC50-22-310. Requirements for prelicense education providers.

A. Each provider of a prelicense education course shall must submit an application for course approval on a form provided by the board. The application shall must include but is not limited to:

1. The name of the provider;

2. Provider contact person, address, and telephone number;

3. Course contact hours;

4. Schedule of courses, if established, including dates, time, and locations;

5. Instructor information, including name, license number(s) number, if applicable, and a list of other appropriate trade designations;

6. Course and material fees; and

7. Course syllabus.

B. All providers must establish and maintain a record for each student. The record shall include: the student's name and address; social security number or Virginia DMV control number, if applicable; the course name and clock hours attended; the course syllabus or outline; the name or names of the instructor; the date of successful completion; and the board's course code. Records shall be available for inspection during normal business hours by authorized representatives of the board. Providers must maintain class records for a minimum of five years.

18VAC50-22-320. Reporting of course completion.

All prelicense education providers shall must electronically transmit course completion data to the board in an approved format within seven days of the completion of each individual course. The transmittal will include each student's name, social security number or Virginia DMV control number, if applicable, the date of successful completion of the course, and the board's course code.

18VAC50-22-330. Posting prelicense education course certificates of approval. (Repealed.)

Copies of prelicense education course certificates of approval must be available at the location a course is taught.

18VAC50-22-350. Denial or withdrawal of approval.

The board may deny or withdraw approval of any prelicense education provider for the following reasons:

1. The courses being offered no longer meet the standards established by the board.

2. The provider, through an agent or otherwise, advertises its services in a fraudulent or deceptive way.

3. The provider, instructor, or designee of the provider falsifies any information relating to the application for approval, course information, or student records or fails to produce records required by the Board for Contractors Tradesman Regulations.

VA.R. Doc. No. R23-7412; Filed September 18, 2024