TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD FOR CONTRACTORS

Proposed Regulation

Titles of Regulations: 18VAC50-22. Board for Contractors Regulations (amending 18VAC50-22-80, 18VAC50-22-100).

18VAC50-30. Individual License and Certification Regulations (amending 18VAC50-30-100).

Statutory Authority: §§ 54.1-201 and 54.1-1102 of the Code of Virginia.

Public Hearing Information:

August 19, 2025 - 3 p.m. - Department of Professional and Occupational Regulation, 9960 Mayland Drive, Second Floor Conference Center, Richmond, VA 23233.

Public Comment Deadline: September 26, 2025.

Agency Contact: Cameron Parris, Regulatory Operations Administrator, Board for Contractors, 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 promulgate regulations necessary to ensure continued competency, to prevent deceptive or misleading practices by practitioners, and to effectively administer the regulatory system. Section 54.1-1102 of the Code of Virginia requires the board to promulgate regulations necessary for the licensure and relicensure of contractors and tradesmen and the certification and recertification of backflow prevention device workers.

Purpose: The board protects the public health, safety, and welfare, in part, by establishing through regulation the minimum qualifications for entry into the profession, including the appropriate examinations for licensure or certification. In the process of negotiating a contract with its examination vendor to expand examination services to include providing examinations in multiple languages, the board determined that the existing examination fee caps pose a challenge to implementing additional examination services. The amendments will allow the board to offer expanded examination services, including additional language services and remote proctoring, while still ensuring that applicants for licensure or certification meet the minimum qualifications to engage in regulated activity.

Substance: The proposed amendments (i) increase examination fee caps for applicants for licensure or certification, (ii) provide that examination fees are charged to an examination candidate based on a contract entered into by the board and an outside examination vendor in accordance with the Virginia Public Procurement Act (§ 2.2-4300 et seq. of the Code of Virginia), and (iii) remove obsolete provisions regarding examinations administered by the board.

Issues: The primary advantage of this regulatory change is that vendors who might not otherwise bid to contract with the board to provide examination services because of the current examination fee caps could potentially offer services. This increase in competition would be beneficial to the citizens of the Commonwealth because it would allow the board to negotiate a better contract for services, including the expanded services the board contemplates offering in the future, and seek out the best value for these services from multiple providers. Another advantage associated with this change is that the board will be better able to offer the expanded examination services, which will benefit the regulated community by allowing for more businesses and individuals to take the license examinations needed to obtain licensure. The primary advantage to the board is that the board will be better able to serve its customers and the Commonwealth and support workforce development and promotion of a positive business climate. No disadvantages to the public, the regulated community, the agency, or the Commonwealth have been identified.

Department of Planning and Budget 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 (Code) and Executive Order 19. The analysis presented below 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 for Contractors (board) proposes to amend provisions related to examination fees that are charged to applicants for licensure or certification. The proposed amendments would remove obsolete language and provide that examination fees are based on a contract entered into by the board and an outside examination vendor in accordance with the Virginia Public Procurement Act (§ 2.2-4300 et seq. of the Code of Virginia).

Background. The board is proposing to amend language in two chapters related to examination fees that are charged to applicants for licensure or certification. This action is similar to actions taken by other boards under the Department of Professional and Occupational Regulation (DPOR) that used to approve or administer a licensing exam but have since contracted with an external organization to administer those exams.² The board has already contracted with an exam vendor, PSI, to administer the exams required by the Board for Contractors Regulations (18VAC50-22), which apply to the designated employee or qualified individual for contractor business licenses, and exams required by the Individual License and Certification Regulations (18VAC50-30). Information regarding the current examinations and fees can be found on the DPOR website.³ Thus, the proposed changes would align the regulation with current practice and remove obsolete information.

Under the proposed text, 18VAC50-22-80 and 18VAC50-30-100 would both be renamed Examination fees and would be amended to state that "The fee for examination is subject to contracted charges to the board by an outside vendor based on a contract entered into in compliance with the Virginia Public Procurement Act (§§ 2.2-4300 et seq. of the Code of Virginia). Fees may be adjusted and charged to the candidate in accordance with this contract." These sections would also be amended to remove obsolete provisions regarding approval of examinations.

Further, 18VAC50-22-80 currently caps examination fees at $100 per element; this cap would be increased to $200. 18VAC50-22-100 specifies the Qualified Individual Exam Fee, Class B Exam Fee, and Class A Exam Fee as $20, $40, and $60, respectively. These specific fees, which DPOR reports have been in place since 1995, would be repealed. DPOR reports that these fees are not currently being collected.

For comparison, the fees currently charged by PSI are $85 for a Qualified Individual specialty exam; and $40 for one portion, $72 for two portions, and $85 for three portions of the Class A/Class B Contractors license exam. The Class A license requires all three portions, and the Class B license requires two portions; the fees indicate that applicants can choose to register for one, two, or three portions at a time, and retake one or two sections if needed. Although the combined fees exceed the specific fee amounts in 18VAC50-22-100, they still fall under the current $100 per element cap in 18VAC50-22-80.

18VAC50-30-100 similarly caps examination fees at $100 for the journeyman exam, $125 for the master exam for any of the trades, or $100 for the backflow prevention device worker, elevator mechanic, accessibility mechanic, or water well systems provider exams. These caps would be increased to $200, $225, and $200, respectively. For comparison, the fees currently charged by PSI are identical to the current cap, which has been in place in 1995, except for water well system providers, who are currently charged $95.

Estimated Benefits and Costs. As described above, the proposed amendments would conform the regulation to current practice, in the sense that the vendor has already been contracted, and as such, the proposed amendments would not create any new costs. However, the contracted fees are currently at or under the fee caps and are likely to increase beyond these caps when they are renewed next year. Regulants may not have as much opportunity to provide feedback on future fee changes under the procurement process as they would if such changes required the board to take regulatory action. However, future fee increases would be subject to the new caps; thus, regulants can anticipate the magnitude of potential fee changes. DPOR reports that increasing the caps will allow for additional services, including additional language services and remote proctoring. Some regulants would benefit from these services, which would broadly support workforce development.

Businesses and Other Entities Affected. The proposed changes would directly benefit the current examination vendor or other competing vendors by allowing for higher fees in the future, subject to the new caps. However, increasing the caps would likely lead to higher fees for license applicants. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁴ 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.⁵ Since the proposed changes would increase fee caps, leading to higher fees for license applicants in the future, an adverse impact is indicated.

Small Businesses⁶ Affected.⁷ The proposed amendments do appear to adversely affect small businesses. Types and Estimated Number of Small Businesses Affected: Applicants for contractor licenses would include small businesses. Costs and Other Effects: The exam fees would be higher; however, such increases would be limited by the new caps.

Alternative Method that Minimizes Adverse Impact. The board could maintain current caps or increase the caps by a lesser amount. However, these caps have been in place since 1995, and the proposed new caps are lower than they would be if they were adjusted for inflation. Specifically, the Bureau of Labor Statistics CPI Inflation Calculator provides that $100 in 1995 had the same purchasing power as $211 in 2025 and $125 in 1995 corresponds to $264 in 2025. Thus, there are likely no alternative methods that would minimize adverse impact while allowing for increased services.

Localities⁸ Affected.⁹ The proposed amendments do not disproportionately affect particular localities or affect costs for local governments.

Projected Impact on Employment. The proposed amendments do not affect total employment.

Effects on the Use and Value of Private Property. The proposed amendments may reduce the value of private contractor businesses by increasing costs; however, such cost increases would still be capped and would likely be lower than increases in the cost of materials and equipment. 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 See for example a 2014 action by the Virginia Board for Asbestos, Lead, and Home Inspectors at https://townhall.virginia.gov/L/ViewStage.cfm?stageid=6886 and a 2015 action by the Board for Hearing Aid Specialists and Opticians at https://townhall.virginia.gov/L/ViewStage.cfm?stageid=7102.

³ See https://www.dpor.virginia.gov/Boards/Contractors and https://www.dpor.virginia.gov/Boards/Tradesmen.

⁴ 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.

⁵ 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.

⁶ 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."

⁷ 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.

⁸ "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.

⁹ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

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

Summary:

The proposed amendments (i) increase examination fee caps for applicants for licensure or certification, (ii) provide that examination fees are charged to an examination candidate based on a contract entered into by the Board for Contractors and an outside examination vendor in accordance with the Virginia Public Procurement Act (§ 2.2-4300 et seq. of the Code of Virginia), and (iii) remove obsolete provisions regarding examinations administered by the board.

18VAC50-22-80. Examinations Examination fees.

All examinations required for licensure shall be approved by the board and provided by the board or a testing service acting on behalf of the board, or another governmental agency or organization. The examination fee shall consist of the administration expenses of the Department of Professional and Occupational Regulation ensuing from the board's examination procedures and contract charges. Exam service contracts shall be established through competitive negotiation The fee for examination is subject to contracted charges to the board by an outside vendor based on a contract entered into in compliance with the Virginia Public Procurement Act (§ 11-35 et seq. of the Code of Virginia) (§ 2.2-4300 et seq. of the Code of Virginia). The current examination shall not exceed a cost of $100 $200 per element to the candidate. Fees may be adjusted and charged to the candidate in accordance with this contract.

18VAC50-22-100. Fees.

Each check or money order shall 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:

Note: 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.

18VAC50-30-100. Fees for examinations Examination fees.

The fee for examination fee shall consist of the administration expenses of the department resulting from the board's examination procedures and contract charges. Exam service contracts shall be established through competitive negotiation, is subject to contracted charges to the board by an outside vendor based on a contract entered into in compliance with the Virginia Public Procurement Act (§ 2.2-4300 et seq. of the Code of Virginia). The current examination shall not exceed a cost of $100 $200 for the journeyman exam, $125 $225 for the master exam for any of the trades, or $100 $200 for the backflow prevention device worker, elevator mechanic, accessibility mechanic, or water well systems provider exams. Fees may be adjusted and charged to the candidate in accordance with this contract.