Title of Regulation: 18VAC50-30. Individual License and Certification Regulations (amending 18VAC50-30-10, 18VAC50-30-120, 18VAC50-30-130, 18VAC50-30-220; repealing 18VAC50-30-73, 18VAC50-30-75).

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

Public Hearing Information:

September 9, 2013 - 5 p.m. - City of Chesapeake Council Chamber, 306 Cedar Road Chesapeake, VA

September 24, 2013 - 1 p.m. - Perimeter Center, 9960 Mayland Drive, 2nd Floor, Richmond, VA

September 25, 2013 - 6 p.m. - South County Library, 6303 Merriman Road, Roanoke, VA

October 3, 2013 - 5 p.m. - Fairfax County Government Center, 12000 Government Center Parkway, Conference Room 2-3, Fairfax, VA

October 24, 2013 - 5 p.m. - City of Bristol, Council Chambers, 300 Lee Street, Bristol, VA

Public Comment Deadline: October 25, 2013.

Agency Contact: Eric L. Olson, Executive Director, Board for Contractors, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-2785, FAX (804) 527-4401, or email contractors@dpor.virginia.gov.

Basis: Section 54.1-1102 of the Code of Virginia provides the authority for the Board for Contractors to promulgate regulations for the licensure of contractors in the Commonwealth. The content of the regulations is pursuant to the board's discretion, but shall not be in conflict with the purposes of the statutory authority.

Purpose: The Board for Contractors, along with other regulatory boards, was tasked by the Governor to review its regulations to determine if any provisions could be identified as obsolete, unnecessary, or overly burdensome and subsequently eliminated. The board identified two current provisions of the regulations that can be identified as a financial burden to its licensees with no measurable level of protection to the health, safety, and welfare of the general public.

Substance: Following are the proposed amendments to 18VAC50-30 (Individual License and Certification Regulations):

18VAC50-30-10 - Removes the definition of "inactive tradesman" as the term will be obsolete upon the elimination of the continuing education requirement for renewal of tradesman licenses.

18VAC50-30-73 - Repeals this section as the inactive license will no longer be required upon the elimination of the continuing education requirement for renewal of tradesman licenses.

18VAC50-30-75 - Repeals this section as the activation of a license that was previously inactive will no longer be required upon the elimination of the continuing education requirement for renewal of tradesman licenses.

18VAC50-30-120 B - Eliminates the requirement that a licensed tradesman must complete continuing education in order to meet the eligibility requirements to renew or reinstate a license.

18VAC50-30-130 E - Extends the reinstatement period for a license from one year since the expiration date to two years after expiration.

18VAC50-30-220 A - Removes references to continuing education courses that would be offered to tradesman as they will no longer be required once the continuing education requirement for renewal of tradesman licenses is eliminated.

Issues: The proposed amendments remove the requirement of continuing education completion for renewal of a tradesman license. Currently, existing tradesmen are required to complete three hours of continuing education per specialty per licensing cycle. The cost of completing classes ranges from approximately $50 - $450, depending on the number of specialties, the method of instructions, the availability of courses, and cost of any textbooks or required supplies. This does not include any travel that may be required or productivity lost as a result of being away from work. The elimination of this requirement will result in an immediate reduction in the cost of maintaining a license for the licensee. In those instances where an employer pays for the licensing expenses of an employee, there will also be an immediate reduction in the cost associated with those employers.

In addition to the less burdensome renewal criteria for the licensees, these amendments allow the licensing staff of the Board for Contractors to have more resources available for the processing of new applications. The licensing staff has one staff member currently spending approximately 1,500 hours per year processing education rosters and school submissions. Additionally, call center staff spends approximately 2,000 hours per year answering telephone calls from licensees involving continuing education issues.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Board of Contractors (Board) proposes to amend its regulations that govern individual licenses and certifications. Specifically, the Board proposes to no longer require continuing education for all categories of tradesmen but certified elevator mechanics and certified water well systems providers (continuing education is required by statute for these two certifications). The Board also proposes to eliminate the inactive licensure classification for tradesmen who will no longer have to complete continuing education.

Result of Analysis. Benefits likely outweigh costs for these proposed regulatory changes.

Estimated Economic Impact. Currently, these regulations require tradesmen with plumbing, electrical, and heating ventilation and cooling designations to complete three hours of continuing education for each designation as a condition of biennial active license or certification renewal. Tradesmen with liquid petroleum gas fitters and natural gas fitter provider designations must currently complete one hour of continuing education for each designation biennially. Tradesmen who, for whatever reason, want to keep their license or certification but who do not plan to practice their trade may currently pay a renewal fee and obtain an inactive license or certification without completing the continuing education required for active renewal.

Board staff reports that requiring continuing education has not appreciably decreased the number of disciplinary cases brought before the Board but that there is anecdotal evidence that requiring continuing education is leading to tradesmen forgoing licensure in large numbers.¹ Board staff further reports that tradesmen usually maintain more than one designation and that requiring continuing education likely adds at least $400 (on average) plus time costs and possibly travel expenses to the $90 fee for renewing a tradesmen license or certificate. Because continuing education for tradesmen does not seem to have an appreciable benefit and because it is an added expense that might affect tradesmen's ability to maintain licensure or certification, the Board now proposes to do away with the continuing education requirements for the tradesmen designations listed above. At the same time, the Board proposes to eliminate inactive licensure since the only difference between inactive and active licensure is the continuing education requirement.

These changes will benefit the Board, whose staff will no longer have to field queries and complaints about tradesmen continuing education (34.33% of the calls fielded between January and April of 2013). These changes will also benefit tradesmen, who will no longer have to pay for relatively expensive continuing education in order to maintain licensure or certification. Continuing education providers will not benefit from these changes as they will no longer have a state enforced requirement that tradesmen pay for and complete continuing education in order to renew their licenses or certificates. Providers of continuing education will likely suffer a loss that is close in total to the fees that they would collect from providing classes minus the money they could earn at some other task during the time they now spend training others on account of current regulations. Since this loss will likely be less than the benefit to tradesmen in general and to the state, and since the public is unlikely to be harmed on account of elimination of continuing education requirements, benefits likely outweigh costs for this proposed regulatory action.

Businesses and Entities Affected. These proposed regulatory changes will affect almost all tradesmen licensed or certified by the Board. Board staff reports that the Board currently licenses or certifies 27,780 tradesmen. All tradesmen but those certified as elevator mechanics and water well systems providers will be affected. All providers of eliminated continuing education will also be affected by these proposed changes. Board staff reports that there are 161 entities that provide continuing education in the Commonwealth for affected tradesmen. This continuing education provider total comprises nine state government agencies and three private companies (that provide continuing education only for their employees), 17 trade organizations and nine union halls (providing continuing education for their members), four other government entities, 29 community colleges or other institutions of higher learning and 90 other providers of continuing education. Board staff reports that approximately half of the 90 other providers of continuing education in the state are small business tradesmen or contractors who provide continuing education as a side business. Board staff further reports that 52 of the 161 continuing education providers listed above are based outside of the Commonwealth.

Localities Particularly Affected. No locality will be particularly affected by this proposed regulatory action.

Projected Impact on Employment. Without the requirement that they complete relatively expensive continuing education requirements as a condition of license renewal, more individuals may choose to maintain licensure or certification and work as tradesmen in the Commonwealth. Since continuing education will no longer be required, providers of continuing education will see a likely sharp decrease in demand for their services. Continuing education providers will, however, be able to partly or fully mitigate their lost income by earning money working at other tasks instead of offering classes.

Effects on the Use and Value of Private Property. These proposed regulatory changes are unlikely to affect the use or value of private property in the Commonwealth.

Small Businesses: Costs and Other Effects. No small businesses tradesmen who do not provide continuing education will likely be adversely affected by this regulatory action. The approximately 45 tradesmen or contractors who provide continuing education will lose the income derived from having continuing education as a requirement of tradesmen license or certificate renewal. Continuing education providers will, however, be able to partly or fully mitigate their lost income by earning money working at other tasks instead of offering classes.

Small Businesses: Alternative Method that Minimizes Adverse Impact. There are likely no alternatives to this regulatory change that would decrease the adverse impact.

Real Estate Development Costs. This regulatory action will likely have no effect on real estate development costs in the Commonwealth.

Legal Mandate. 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 Administrative Process Act and Executive Order Number 14 (10). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, a determination of the public benefit, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

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¹ Board staff reports that, in the last five years since continuing education has been required, the Board has experienced a 18.59% drop in the number of tradesmen licensed or certified by the Board; with the largest drop occurring in the number of plumbing and gas fitting specialty licenses which dropped more than 25%. The number of contractors licensed by the Board only decreased 8.33% during this same time period. Board staff reports that phone calls, letters and emails from tradesmen support an assertion that maintaining licensure with the added expense of continuing education is too burdensome, especially during economic downturns.

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

Summary:

The proposed amendments (i) eliminate continuing education as a prerequisite for renewal for tradesman licenses for most trades (trades that have statutory continuing education requirements still have those continuing education requirements), (ii) extend the license reinstatement period from one to two years following expiration date, and (iii) eliminate the inactive license classification.

Part I
General

18VAC50-30-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Apprentice" means a person who assists tradesmen while gaining knowledge of the trade through on-the-job training and related instruction in accordance with the Virginia Voluntary Apprenticeship Act (§ 40.1-117 et seq. of the Code of Virginia).

"Backflow prevention device work" means work performed by a backflow prevention device worker as defined in § 54.1-1128 of the Code of Virginia.

"Building official/inspector" is an employee of the state, a local building department or other political subdivision who enforces the Virginia Uniform Statewide Building Code.

"Certified elevator mechanic" means an individual who is certified by the board who is engaged in erecting, constructing, installing, altering, servicing, repairing, testing or maintaining elevators, escalators, or related conveyances in accordance with the Uniform Statewide Building Code.

"Division" means a limited subcategory within any of the trades, as approved by the department.

"Electrical work" consists of, but is not limited to, the following: (i) planning and layout of details for installation or modifications of electrical apparatus and controls including preparation of sketches showing location of wiring and equipment; (ii) measuring, cutting, bending, threading, assembling and installing electrical conduits; (iii) performing maintenance on electrical systems and apparatus; (iv) observation of installed systems or apparatus to detect hazards and need for adjustments, relocation or replacement; and (v) repairing faulty systems or apparatus.

"Electrician" means a tradesman who does electrical work including the construction, repair, maintenance, alteration or removal of electrical systems in accordance with the National Electrical Code and the Virginia Uniform Statewide Building Code.

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

"Gas fitter" means an individual who does gas fitting-related work usually as a division within the HVAC or plumbing trades in accordance with the Virginia Uniform Statewide Building Code. This work includes the installation, repair, improvement or removal of liquefied petroleum or natural gas piping, tanks, and appliances annexed to real property.

"Helper" or "laborer" means a person who assists a licensed tradesman and who is not an apprentice as defined in this chapter.

"HVAC tradesman" means an individual whose work includes the installation, alteration, repair or maintenance of heating systems, ventilating systems, cooling systems, steam and hot water heating systems, boilers, process piping, backflow prevention devices, and mechanical refrigeration systems, including tanks incidental to the system.

"Inactive tradesman " means an individual who meets the requirements of 18VAC50-30-73 and is licensed under that section.

"Incidental" means work that is necessary for that particular repair or installation and is outside the scope of practice allowed to the regulant by this chapter.

"Journeyman" means a person who possesses the necessary ability, proficiency and qualifications to install, repair and maintain specific types of materials and equipment utilizing a working knowledge sufficient to comply with the pertinent provisions of the Virginia Uniform Statewide Building Code and according to plans and specifications.

"Liquefied petroleum gas fitter" means any individual who engages in, or offers to engage in, work for the general public for compensation in work that includes the installation, repair, improvement, alterations or removal of piping, liquefied petroleum gas tanks and appliances (excluding hot water heaters, boilers and central heating systems that require a heating, ventilation and air conditioning or plumbing certification) annexed to real property.

"Maintenance" means the reconstruction or renewal of any part of a backflow device for the purpose of maintaining its proper operation. This does not include the actions of removing, replacing or installing, except for winterization.

"Master" means a person who possesses the necessary ability, proficiency and qualifications to plan and lay out the details for installation and supervise the work of installing, repairing and maintaining specific types of materials and equipment utilizing a working knowledge sufficient to comply with the pertinent provisions of the Virginia Statewide Building Code.

"Natural gas fitter provider" means any individual who engages in, or offers to engage in, work for the general public for compensation in the incidental repair, testing, or removal of natural gas piping or fitting annexed to real property, excluding new installation of gas piping for hot water heaters, boilers, central heating systems, or other natural gas equipment that requires heating, ventilation and air conditioning or plumbing certification.

"Periodic inspection" means to examine a cross connection control device in accordance with the requirements of the locality to be sure that the device is in place and functioning in accordance with the standards of the Virginia Statewide Building Code.

"Plumber" means an individual who does plumbing work in accordance with the Virginia Statewide Building Code.

"Plumbing work" means work that includes the installation, maintenance, extension, or alteration or removal of piping, fixtures, appliances, and appurtenances in connection with any of the following:

1. Backflow prevention devices;

2. Boilers;

3. Domestic sprinklers;

4. Hot water baseboard heating systems;

5. Hydronic heating systems;

6. Process piping;

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

8. Sanitary or storm drainage facilities;

9. Steam heating systems;

10. Storage tanks incidental to the installation of related systems;

11. Venting systems; or

12. Water heaters.

These plumbing tradesmen may also install, maintain, extend or alter the following:

1. Liquid waste systems;

2. Sewerage systems;

3. Storm water systems; and

4. Water supply systems.

"Regulant" means an individual licensed as a tradesman, liquefied petroleum gas fitter, natural gas fitter provider or certified as a backflow prevention device worker, elevator mechanic, or water well systems provider.

"Reinstatement" means having a license or certification card restored to effectiveness after the expiration date has passed.

"Renewal" means continuing the effectiveness of a license or certification card for another period of time.

"Repair" means the reconstruction or renewal of any part of a backflow prevention device for the purpose of returning to service a currently installed device. This does not include the removal or replacement of a defective device by the installation of a rebuilt or new device.

"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, one of whom must be on the job site at all times during installation.

"Testing organization" means an independent testing organization whose main function is to develop and administer examinations.

"Trade" means any of the following: electrical, gas fitting, HVAC (heating, ventilation and air conditioning), liquefied petroleum gas fitting, natural gas fitting, plumbing, and divisions within them.

"Water distribution systems" include fire sprinkler systems, highway/heavy, HVAC, lawn irrigation systems, plumbing, or water purveyor work.

18VAC50-30-73. Licensing of inactive tradesmen. (Repealed.)

Any individual who is not currently employed as a licensed tradesman and who is not performing any of the activities defined in § 54.1-1128 of the Code of Virginia may be licensed as an inactive tradesman by completing a form provided by the board.

18VAC50-30-75. Activation of license. (Repealed.)

Any inactive tradesman may activate a license to practice as a tradesman by completing a form provided by the board and completing the continuing education requirements for the current licensing cycle. Any tradesman that has not had an active license for a period of greater than three years will be required to meet the current prelicensing eligibility criteria.

18VAC50-30-120. Renewal.

A. Licenses and certification cards issued under this chapter shall expire two years from the last day of the month in which they were issued as indicated on the license or certification card.

B. Effective with all licenses issued or renewed after December 31, 2007, as a condition of renewal or reinstatement and pursuant to § 54.1-1133 of the Code of Virginia, all individuals holding tradesman licenses with the trade designations of plumbing, electrical and heating ventilation and cooling shall be required to satisfactorily complete three hours of continuing education for each designation and individuals holding licenses as liquefied petroleum gas fitters and natural gas fitter providers, one hour of continuing education, relating to the applicable building code, from a provider approved by the board in accordance with the provisions of this chapter. An inactive tradesman is not required to meet the continuing education requirements as a condition of renewal.

C. B. Certified elevator mechanics, as a condition of renewal or reinstatement and pursuant to § 54.1-1143 of the Code of Virginia, shall be required to satisfactorily complete eight hours of continuing education relating to the provisions of the Virginia Statewide Building Code pertaining to elevators, escalators and related conveyances. This continuing education will be from a provider approved by the board in accordance with the provisions of this chapter.

D. C. Certified water well systems providers, as a condition of renewal or reinstatement and pursuant to § 54.1-1129.1 B of the Code of Virginia, shall be required to satisfactorily complete eight hours of continuing education in the specialty of technical aspects of water well construction, applicable statutory and regulatory provisions, and business practices related to water well construction from a provider approved by the board in accordance with the provisions of this chapter.

E. D. Renewal fees are as follows:

	Tradesman license	$90
	Liquefied petroleum gas fitter license	$90
	Natural gas fitter provider license	$90
	Backflow prevention device worker certification	$90
	Elevator mechanic certification	$90
	Water well systems provider certification	$90

All fees are nonrefundable and shall not be prorated.

F. E. The board will mail a renewal notice to the regulant outlining procedures for renewal. Failure to receive this notice, however, shall not relieve the regulant of the obligation to renew. If the regulant fails to receive the renewal notice, a photocopy of the tradesman license or backflow prevention device worker certification card may be submitted with the required fee as an application for renewal within 30 days of the expiration date.

G. F. The date on which the renewal fee is received by the department or its agent will determine whether the regulant is eligible for renewal or required to apply for reinstatement.

H. G. The board may deny renewal of a tradesman license or a backflow prevention device worker certification card for the same reasons as it may refuse initial issuance or to discipline a regulant. The regulant has a right to appeal any such action by the board under the Virginia Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia).

I. H. 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.

18VAC50-30-130. Reinstatement.

A. Should the Department of Professional and Occupational Regulation fail to receive the renewal application or fees within 30 days of the expiration date, the regulant will be required to apply for reinstatement of the license or certification card.

B. Reinstatement fees are as follows:

Tradesman license	$140*
Liquefied petroleum gas fitter license	$140*
Natural gas fitter provider license	$140*
Backflow prevention device worker certification	$140*
Elevator mechanic certification	$140*
Water well systems provider certification	$140*
*Includes renewal fee listed in 18VAC50-30-120.

All fees required by the board are nonrefundable and shall not be prorated.

C. Applicants for reinstatement shall meet the requirements of 18VAC50-30-30.

D. The date on which the reinstatement fee is received by the department or its agent will determine whether the license or certification card is reinstated or a new application is required.

E. In order to ensure that license or certification card holders are qualified to practice as tradesmen, liquefied petroleum gas fitters, natural gas fitter providers, backflow prevention device workers, elevator mechanics, or water well systems providers, no reinstatement will be permitted once one year two years from the expiration date has passed. After that date the applicant must apply for a new license or certification card and meet the then current entry requirements.

F. Any tradesman, liquefied petroleum gas fitter, or natural gas fitter provider activity conducted subsequent to the expiration of the license may constitute unlicensed activity and may be subject to prosecution under Title 54.1 of the Code of Virginia. Further, any person who holds himself out as a certified backflow prevention device worker, as defined in § 54.1-1128 of the Code of Virginia, or as a certified elevator mechanic, as defined in § 54.1-1140 of the Code of Virginia, or as a water well systems provider as defined in § 54.1-1129.1 of the Code of Virginia, without the appropriate certification, may be subject to prosecution under Title 54.1 of the Code of Virginia. Any activity related to the operating integrity of an elevator, escalator, or related conveyance, conducted subsequent to the expiration of an elevator mechanic certification may constitute illegal activity and may be subject to prosecution under Title 54.1 of the Code of Virginia.

G. The board may deny reinstatement of a license or certification card for the same reasons as it may refuse initial issuance or to discipline a regulant. The regulant has a right to appeal any such action by the board under the Virginia Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia).

H. 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.

18VAC50-30-220. Continuing education courses.

A. All courses offered by continuing education providers must be approved by the board and shall cover articles of the current edition of the building code for the applicable license specialty. For tradesmen with the electrical specialty, the National Electrical Code; for tradesmen with the plumbing specialty, the International Plumbing Code; for tradesmen with HVAC specialty, the International Mechanical Code; for gas fitters, liquefied petroleum gas fitters, and natural gas fitters, the International Fuel Gas Code. Courses offered by continuing education providers for elevator mechanics shall cover articles of the current edition of the building code and other applicable laws governing elevators, escalators, or related conveyances. Courses offered by continuing education providers for water well systems providers shall cover the specialty of technical aspects of water well construction, applicable statutory and regulatory provisions, and business practices related to water well construction.

B. Approved continuing education providers shall submit an application for course approval on a form provided by the board. The application shall include but is not limited to:

1. The name of the provider and the approved provider number;

2. The name of the course;

3. The date(s), time(s), and location(s) of the course;

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

5. Course and material fees;

6. Course syllabus.

C. Courses may be approved retroactively; however, no regulant will receive credit toward the continuing education requirements of renewal until such approval is received from the board.