Title of Regulation: 18VAC50-30. Individual License and Certification Regulations (amending 18VAC50-30-20, 18VAC50-30-30, 18VAC50-30-40).

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

Public Hearing Information:

July 11, 2016 - 10 a.m. - Commonwealth of Virginia Conference Center, Perimeter Center, 9960 Mayland Drive, Board Room 3, Richmond, VA 23233

Public Comment Deadline: August 26, 2016.

Agency Contact: Eric L. Olson, Executive Director, Board for Contractors, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-2785, FAX (866) 430-1033, 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: During the past 18 months, several instances involving the submission of false documentation, forged verification forms, and questionable identity have been brought to the attention of the Board for Contractors. The majority of these instances has resulted in disciplinary action being taken against the licensee or certificate holder, usually in the form of the revocation of the license or certificate, and a monetary sanction. To date nearly 100 such cases have been adjudicated by the board or are scheduled to be heard by the board, and there are more than 100 currently in the investigative stages.

A review of these cases has found that the board's current documentation requirements are insufficient to ensure that the information being provided by the applicant is valid. This includes, but is not limited to, verification of identification, experience documentation, determination of fiscal responsibility, and verification of employment status. The application process has been modified somewhat, in those areas that do not require an amendment of the regulations, but the board has identified other requirements that should be implemented to reduce the instances of application fraud.

The board is tasked with ensuring that individual licensees and certificate holders meet minimum competency standards to ensure that the public is protected from unqualified or incompetent individuals performing work that if done improperly can have a direct effect on the safety of the public. In order to ensure that these minimum standards are met it is critical that the documentation reviewed by the board to determine license and certification eligibility is accurate and trustworthy.

Substance: 18VAC50-30-20: The amendments clarify that the board may approve the applicant to take the applicable exam or issue the license or certificate.

18VAC50-30-30: The amendments add the requirement of submission of identification and a 2" x 2" photo deemed necessary by the board for proper identification of the applicant who is applying.

18VAC50-30-40: The amendments require submission of experience verification deemed necessary by the board to meet the statutory and regulatory requirements.

Issues: The primary advantage to the public is that the amendments help ensure that the license holders actually meet the minimum competency requirements to get a license, and the public can feel more confident that the license was not acquired fraudulently. The disadvantage to applicants applying for licenses is that they will need to provide licensing staff with more supporting paperwork.

The primary advantage to the agency is fewer investigations on license holders for acquiring the license fraudulently. The disadvantage to the agency is that the licensing staff will need to do more research before issuing a license.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. In order to increase the integrity of information provided as a part of tradesmen licensure/certification, the Board of Contractors (Board) proposes several new verification requirements for its individual tradesmen licensees/certificate holders.

Result of Analysis. Benefits likely outweigh costs for most proposed regulatory changes. For one proposed regulatory change, the benefits of the change could likely be ensured at a lower cost for regulated entities than would likely accrue under the current proposed language.

Estimated Economic Impact. Board staff reports that the Board is dealing with an increasing problem, over the last 18 months or so, involving the submission of false documentation, forged verification forms and questionable identity representations. Board staff reports that, to date, nearly 100 cases have been heard or are scheduled to be heard by the Board and that more than 100 additional cases are currently in some investigative stage.

To address these problems, the Board is proposing several new documentation requirements. The Board proposes that applicants for licensure or certification who are subject to experience requirements must have that experience verified by a building official, building inspector, registered design professional, a licensee of the Board or another regulatory agency or by any other individual/organization approved by the Board. Board staff reports that the Board is moving toward requiring that verification come from some licensed entity under some Board's authority because then the verifying entity can be disciplined if they falsely verify someone's experience. In most cases, this verification will be new. Applicants for journeyman or master status who are applying using 10 years of experience in a trade to qualify currently have to have their experience verified. Current regulation allows verification to come from the groups approved for verification in this proposed regulation plus former or current clients or former or current employers. While the proposed regulation allows the Board to approve additional entities (which may include current or former clients or employers on a case by case basis), some applicants may be worse off under the proposed regulation than they are under current the regulation which always allows them to use employer/client verification. All other applicants would likely incur only minimal copying and postage costs for meeting most of the Board's proposed requirements.

The Board also proposes that applicants for individual licensure be required to submit copies of a government issued ID and a 2 X 2 photograph that meets the requirements set forth by the U.S. Department of State for passports. These requirements include that the picture be:

1) In color,

2) Printed on matte or glossy photo quality paper,

3) 2 X 2 inches in size,

4) Sized such that the head is between 1" and 1 and 3/8" from the chin to the top of the head,

5) Taken within the last six months,

6) Taken in front of a white or off-white background,

7) Taken in full-face view looking directly at the camera, and

8) Taken with a neutral expression or a natural smile with both eyes open.

Board staff reports that the Board wants to require a government issued ID to verify the identity of the individuals who are submitting an application but that the Board also wants to require a photo that meets passport standards to 1) have an electronic copy of a photo for comparison with photos taken at exam sites during check-in and 2) because the Board is exploring the possibility of issuing photo licenses/certificates and requiring a passport compliant photo now will allow them to have photos to facilitate issuing such credentials. Board staff further reports that the Board will accept any photo that meets the State Department criteria. Assuming that individuals choose to take their own photos, they will incur likely fairly large time costs ensuring that their photo meets all criteria above and then will either have to print that photo in a standard available size (4 X 6 or 3 X 5, both available at most photo kiosks for less than 50 cents), and hand crop it while ensuring that head size in the photo matches requirements, or will have to pay to have 2 X 2 copies printed. Information found via internet search indicates that Walmart will print passport size photos from a customer's own electronic photo file for $7.44 per two photos (photos such as this can only be purchased in sets of two). Alternately, applicants can get a passport photo taken at a number of places including Walmart and Walgreens. Again the photos are sold in sets of two and cost between $12 and $13.

While requiring individuals to submit a picture and ID with their application will likely decrease cases of applicants misrepresenting their identity or sending another individual to take their Board exam, it may not be the least costly way to affect that goal. Most people have a government issued photo ID, even if they do not have a driver's license, because they need a photo ID for many things (from proving identification when writing a check or using a credit card to voting). Just requiring a government issued ID that includes a photo would likely reduce the cost of complying with this proposed requirement. Also worth noting, the Board has not implemented photo license/certificates yet and it may be many months (or even years) before they can get such credentialing into place. As State Department rules require that a photo be taken within six months of its use, any delay in photo credentialing past a few months may see some applicants having to pay for and submit an additional photo when and if the Board changes licenses/certificates. While there is a very worthwhile benefit in the Board's efforts to curtail fraud, those benefits could likely be ensured at a lower cost for regulated entities by only requiring a government issued photo ID.

Finally, the Board is currently required to license/certify as a master any individual that successfully passed a Class A contractors trade examination prior to January 1, 1991. The Board proposes to change this so that they may issue a masters license or certificate only upon submission of verification of an individual's continuous work in the trade since he passed his exam. This change may mean fewer individuals in this category are able to obtain masters licensure/certification. To the extent that the contractors trade exam has undergone large changes in the information required to pass and to the extent that continuous or recent practice ensures competency, the benefits accrued by not licensing/certifying individuals who passed the exam approximately 25 years ago and who may not be competent to practice likely outweigh the costs for individuals who would have to meet current experience requirements and take an exam to get their masters designation.

Businesses and Entities Affected. Board staff reports that the Board received approximately 2,000 applications for licensure per year over the last five years. Some of these individuals may be (or may plan to be once licensed/certified) individual proprietor small businesses; some other of these individuals may work for small businesses that pay for their licensure.

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

Projected Impact on Employment. These proposed changes are unlikely to impact employment for any applicant tradesmen except those that are unable to legitimately provide the documentation that the Board proposes to require.

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.

Real Estate Development Costs. These proposed regulatory changes are unlikely to affect real estate development costs in the Commonwealth.

Small Businesses:

Definition. Pursuant to § 2.2-4007.04 of the Code of Virginia, 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."

Costs and Other Effects. Small businesses that pay their applicant tradesmen's licensure/certification costs and fees, and individual applicant tradesmen who intend to be single proprietor small businesses once they are licensed or certified, will likely incur minimal costs to meet the Board's new verification requirements. These entities will likely also incur costs for meeting the proposed requirements for providing both a government issued ID and a State Department compliant passport size photo.

Alternative Method that Minimizes Adverse Impact. Costs for applicants could likely be decreased without decreasing benefits by requiring a copy of a government issued photo ID rather than requiring a government issued ID and a 2 X 2 photo.

Adverse Impacts:

Businesses. Businesses that pay their applicant tradesmen's Board costs and fees, and individual applicant tradesmen who intend to be single proprietor small businesses once they are licensed or certified, will likely incur minimal costs to meet the Board's new verification requirements. These entities will likely also incur costs for meeting the proposed requirements for providing both a government issued ID and a State Department compliant passport size photo.

Localities. Localities in the Commonwealth are unlikely to see any adverse impacts on account of this proposed regulatory change.

Other Entities. Other entities in the Commonwealth are unlikely to suffer any adverse impacts on account of this regulatory action.

Agency's Response to Economic Impact Analysis: The Board for Contractors does not agree that the requirement to have an applicant provide a passport approved photograph would be overly burdensome or costly. The Department of Planning and Budget (DPB) indicates that the cost would be no greater than $13 or about 6.0% of the total cost of the application and examination ($130 and $85). The purpose of the passport photo is twofold: one to have an original photograph, not a scanned copy of a government identification (ID), for the purposes of ensuring exam site security; and secondly, to be incorporated into photographic licenses, which the board has indicated that it wishes to pursue. Scanned copies of government IDs would not be acceptable for use to make photo licenses. While the statement that it may be months before the licenses are in place is certainly reasonable given the procurement process, the parenthetical that it may be years before they are implemented is not likely. Once the photo license program is initiated it will be much more economical to have a number of the photos already on file, where the board does not have to go through the time and expense to collect them.

With the exception of the statement that the requirement of passport photos may not be the most efficient way to achieve the benefits sought by the board, the agency concurs with the remainder of the economic impact analysis.

Summary:

The proposed amendments modify the documentation submitted as part of the application to verify requirements for experience level, education, and examination, including identification of the individual submitting the application, third party verification of experience, verification of education, and other requirements.

Part II
Entry

18VAC50-30-20. Requirements for licensure or certification.

Each applicant shall meet or exceed the requirements set forth in this section prior to issuance of the license or certification card.

The applicant shall be required to take an examination to determine his general knowledge of the regulated activity in which he desires licensure or certification. If the applicant successfully completes the examination, an application furnished by the department shall be completed. The application shall contain the applicant's name, home address, place of employment, and business address; information on the knowledge, skills, abilities, and education or training of the applicant; and a statement certifying that the information on the application is correct. If the application is satisfactory to the board, the applicant will be approved to take the applicable examination or a license or certification card shall be issued.

18VAC50-30-30. General qualifications for licensure or certification.

Every applicant to the Board for Contractors for licensure or certification shall meet the requirements and have the qualifications provided in this section.

1. The applicant shall be at least 18 years old.

2. Unless otherwise exempted, the applicant shall meet the current educational requirements by passing all required courses prior to the time the applicant sits for the examination and applies for licensure or certification.

3. Unless exempted, the applicant shall have passed the applicable examination provided by the board or by a testing organization acting on behalf of the board.

4. The applicant shall meet the experience requirements as set forth in 18VAC50-30-40.

5. In those instances where the applicant is required to take the license or certification examination, the applicant shall follow all rules established by the board with regard to conduct at the examination. Such rules shall include any written instructions communicated prior to the examination date and any instructions communicated at the site, either written or oral, on the date of the examination. Failure to comply with all rules established by the board and the testing organization with regard to conduct at the examination shall be grounds for denial of application.

6. The Each applicant shall (i) provide a copy of a government-issued identification, (ii) provide a 2 x 2-inch photograph that meets the requirements set forth by the U.S. Department of State for passports, and (iii) disclose his physical home address; a post office box alone is not acceptable.

7. Each nonresident applicant for a license or certification card shall file and maintain with the department an irrevocable consent for the department to serve as service agent for all actions filed in any court in this Commonwealth. In those instances where service is required, the director of the department will mail the court document to the individual at the address of record.

8. The applicant shall sign, as part of the application, a statement certifying that the applicant has read and understands Article 3 (§ 54.1-1128 et seq.) of Chapter 11 of Title 54.1 of the Code of Virginia and this chapter.

9. The board may make further inquiries and investigations with respect to the qualifications of the applicant or require a personal interview with the applicant.

10. In accordance with § 54.1-204 of the Code of Virginia, each applicant shall disclose a conviction, in any jurisdiction, of any misdemeanor or felony. Any plea of nolo contendere shall be considered a conviction for the purpose of this subdivision. The record of conviction received from a court shall be accepted as prima facie evidence of a conviction or finding of guilt. The board, at its discretion, may deny licensure or certification to any applicant in accordance with § 54.1-204 of the Code of Virginia.

11. The applicant shall report any suspensions, revocations, or surrendering of a certificate or license in connection with a disciplinary action or which has been the subject of discipline in any jurisdiction prior to applying for licensure or certification in Virginia. The board, at its discretion, may deny licensure or certification to any applicant based on prior suspensions, revocations, or surrender of certifications or licenses based on disciplinary action by any jurisdiction.

18VAC50-30-40. Evidence of ability and proficiency.

A. Applicants for examination to be licensed as a journeyman shall furnish evidence that one of the following experience and education standards has been attained:

1. Four years of practical experience in the trade verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board and 240 hours of formal vocational training in the trade. Experience in excess of four years may be substituted for formal vocational training at a ratio of one year of experience for 80 hours of formal training, but not to exceed 200 hours;

2. Four years of practical experience verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board and 80 hours of vocational training for liquefied petroleum gas fitters and natural gas fitter providers except that no substitute experience will be allowed for liquefied petroleum gas and natural gas workers;

3. An associate degree or a certificate of completion from at least a two-year program in a tradesman-related field from an accredited community college or technical school as evidenced by a transcript from the educational institution and two years of practical experience in the trade for which licensure is desired verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board;

4. A bachelor's degree received from an accredited college or university in an engineering curriculum related to the trade and one year of practical experience in the trade for which licensure is desired verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board; or

5. An applicant with 10 years of practical experience in the trade, as verified by reference letters of experience from any of the following: building officials, building inspectors, current or former employers, contractors, engineers, architects or current or past clients attesting to the applicant's work in the trade, a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board, may be granted permission to sit for the journeyman's level examination without having to meet the educational requirements.

B. Applicants for examination to be licensed as a master shall furnish evidence that one of the following experience standards has been attained:

1. Evidence that they have one year of experience as a licensed journeyman; or Licensure as a journeyman in the applicable trade by the Board for Contractors for a period of a least one year; or

2. An applicant with 10 years of practical experience in the trade, as verified by reference letters of experience from any of the following: building officials, building inspectors, current or former employers, contractors, engineers, architects or current or past clients, attesting to the applicant's work in the trade, a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board, may be granted permission to sit for the master's level examination without having to meet the educational requirements.

C. Individuals who have successfully passed the Class A contractors trade examination prior to January 1, 1991, administered by the Virginia Board for Contractors in a certified trade shall may be deemed qualified as a master in that trade in accordance with this chapter upon submission of verification acceptable to the Board for Contractors or continuous work in the trade since the successful completion of the Class A contractors trade examination.

D. Applicants for examination to be certified as a backflow prevention device worker shall furnish evidence that one of the following experience and education standards has been attained:

1. Four years of practical experience in water distribution systems verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board and 40 hours of formal vocational training in a school approved by the board; or

2. Applicants with seven or more years of experience, as verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board, may qualify with 16 hours of formal vocational training in a school approved by the board.

The board accepts the American Society of Sanitary Engineers' (ASSE) standards for testing procedures. Other programs could be approved after board review. The board requires all backflow training to include instruction in a wet lab.

E. An applicant for certification as an elevator mechanic shall:

1. Have three years of practical experience in the construction, maintenance and service/repair of elevators, escalators, or related conveyances verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board; 144 hours of formal vocational training; and satisfactorily complete a written examination administered by the board. Experience in excess of four years may be substituted for formal vocational training at a ratio of one year of experience for 40 hours of formal training, but not to exceed 120 hours;

2. Have three years of practical experience in the construction, maintenance, and service/repair of elevators, escalators, or related conveyances verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board and a certificate of completion of the elevator mechanic examination of a training program determined to be equivalent to the requirements established by the board; or

3. Successfully complete an elevator mechanic apprenticeship program that is approved by the Virginia Apprenticeship Council or registered with the Bureau of Apprenticeship and Training, U.S. Department of Labor, as evidenced by providing a certificate of completion or other official document, and satisfactorily complete a written examination administered by the board.

F. Pursuant to § 54.1-1129.1 A of the Code of Virginia, an applicant for examination as a certified water well systems provider shall provide satisfactory proof to the board of at least:

1. One year of full-time practical experience in the drilling, installation, maintenance, or repair of water wells or water well systems under the supervision of a certified master water well systems provider or other equivalent experience as approved by the board to qualify for examination as a trainee water well systems provider;

2. Three years of practical experience in the drilling, installation, maintenance, or repair of water wells or water well systems under the supervision of a certified master water well systems provider or other equivalent experience as approved by the board and 24 hours of formal vocational training in the trade to qualify for examination as a journeyman water well systems provider; or

3. Six years of practical experience in the drilling, installation, maintenance, or repair of water wells or water well systems under the supervision of a certified master water well systems provider or other equivalent experience as approved by the board and 48 hours of formal vocational training in the trade to qualify for examination as a master water well systems provider.

G. An applicant for certification as an accessibility mechanic shall:

1. Have three years of practical experience in the construction, installation, maintenance, service, repair, and testing of wheelchair lifts, incline chairlifts, dumbwaiters, residential elevators, or related conveyances verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board; 80 hours of formal vocational training; and satisfactorily complete a written examination administered by the board. Experience in excess of four years may be substituted for formal vocational training at a ratio of one year of experience for 20 hours of formal training, but not to exceed 60 hours;

2. Have three years of practical experience in the construction, installation, maintenance, service, repair, and testing of wheelchair lifts, incline chairlifts, dumbwaiters, residential elevators, or related conveyances verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board and a certificate of completion of an accessibility mechanic examination of a training program determined to be equivalent to the requirements established by the board; or

3. Successfully complete an accessibility mechanic apprenticeship program that is approved by the Virginia Apprenticeship Council or registered with the Bureau of Apprenticeship and Training, U.S. Department of Labor, as evidenced by providing a certificate of completion or other official document, and satisfactorily complete a written examination administered by the board.

H. An applicant for a limited use/limited application (LULA) endorsement shall:

1. Hold a current certification as an accessibility mechanic issued by the board.

2. Have (i) one year of practical experience in the construction, installation, maintenance, service, repair, and testing of limited use/limited application elevators and verified by a building official, building inspector, registered design professional, licensee of the Board for Contractors, licensee of another regulatory agency, or other individual or organization approved by the board complete; (ii) completed a vocational education program approved by the board; and (iii) either satisfactorily complete completed a written examination administered by the board; or complete completed a limited use/limited application elevator training program determined to be equivalent to the requirements established by the board.