18VAC50-22 Board for Contractors Regulations

REGULATIONS

Vol. 32 Iss. 22 - June 27, 2016

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD FOR CONTRACTORS

Chapter 22

Proposed Regulation

Title of Regulation: 18VAC50-22. Board for Contractors Regulations (amending 18VAC50-22-10, 18VAC50-22-40, 18VAC50-22-50, 18VAC50-22-60, 18VAC50-22-220, 18VAC50-22-230, 18VAC50-22-310).

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 [phone], FAX [phone], or email [e-mail].

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 have resulted in disciplinary action being taken against the licensee, usually in the form of the revocation of the license 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 more than 100 currently are 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 contractors meet minimum competency standards as well as minimum financial standards to ensure that the public is protected from unqualified or incompetent contractors as well as to ensure that contractors have the fiscal health to enter into contracts that can be for hundreds of thousands of dollars. In order to ensure that these minimum standards are met, it is critical that the documentation reviewed by the board to determine license eligibility is accurate and trustworthy.

Substance: 18VAC50-22-10: Amendments add two definitions to the existing list of definitions.

18VAC50-22-40, 18VAC50-22-50, and 18VAC50-22-60: Provisions for submission of identification, experience verification, employment verification, credit checks, and verification of fiscal standing (as applicable) are amended as deemed necessary by the board to meet the statutory and regulatory requirements.

18VAC50-22-220 and 18VAC50-22-230: Documentation that must be submitted in order to ensure that a licensee meets the eligibility requirements to make changes to its license is amended.

18VAC50-22-310: Amendments are made to the requirements for pre-license education providers to attend training provided by the board.

Issues: The primary advantage to the public is that these regulations will help to 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 only 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 there will be 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 contractor licensure, the Board of Contractors (Board) proposes several new verification requirements for its licensees.

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

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 that are subject to experience requirements must have that experience verified by a building official, building inspector, registered design professional, a licensee of this Board or another regulatory agency or by any other individual/organization approved by the Board. The Board also proposes to require firms that must supply information on past due debts, outstanding tax obligations and defaults, judgements and bankruptcies also supply a copy of their credit report to verify the information that they supply. Similarly, where the Board now requires firms to report and have a certain level of assets, the Board proposes to require verification that the reported assets are actually owned by, or titled to, the firm reporting them. The Board proposes to remove qualified individuals from the list of entities that must supply information on debts as any qualified individuals who are not also members of responsible management are just employees of the firm and their financial stability has no effect on the stability of the firm. People named by firms as qualified individuals (who are not also members of responsible management) will, however, have to provide proof that they are employed full time by the firm that has named them as qualifying individuals with submission of copies of I-9s, W-4s, insurance documents, or other documentation approved by the Board. The Board also proposes that firms be required to submit copies of a government issued photo ID for each member of responsible management and for each qualified individual for the firm. Members of responsible management and each qualified individual will also be required to sign the firm's application for licensure. If firms change members of responsible management or qualified individuals, the Board proposes to require the new individuals to provide the same information and documentation as required by members of responsible management and qualified individuals at the time of application for licensure. Lastly, the Board proposes to require all providers of pre-licensure education to send at least one representative every two years to attend a Board of Contractors remedial education course. These courses are held monthly.

Licensed firms would incur only minimal copying and postage costs for meeting most of the Board's proposed requirements. They may or may not incur slightly more than minimal costs to provide a credit report. Credit reports are available free at some websites but may cost as much as $12. Pre-licensure education providers will incur costs to send a representative to Board training once every two years roughly equal to the prorated salary of the individual sent plus travel expenses (gas, tolls if applicable and vehicle wear and tear allowances). These costs are likely outweighed by the benefits that will accrue from the Board taking steps to curb fraud and forgery amongst their applicants for licensure.

Businesses and Entities Affected. Board staff reports that the Board received approximately 5,000 applications for licensure per year over the last five years; approximately 4,000 of the 5,000 applications each year are from firms that qualify as small businesses.

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 in any firm 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 may incur minimal costs to meet the Board's new documentation requirements and pre-licensure education providers will likely incur moderate costs once every two years to send a representative to a Board remedial education course.

Alternative Method that Minimizes Adverse Impact. There are likely no alternative methods that would both meet the Board's goal of curbing fraud amongst their applicants and further minimize adverse impacts.

Adverse Impacts:

Businesses. Small businesses may incur minimal costs to meet the Board's new documentation requirements and pre-licensure education providers will likely incur moderate costs once every two years to send a representative to a Board remedial education course.

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 concurs with the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

The proposed amendments modify the documentation submitted as part of the application to verify requirements for experience level, net worth, examination, and employment, including submission of identification of the individuals listed on the application, third party verification of experience, verification of financial standing, and other criteria. The amendments also require all prelicense education providers to attend a board remedial education course once every two years.

Part I
Definitions

18VAC50-22-10. General definitions.

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.

"Credit report" means documentation from a nationally recognized credit agency that reflects the financial responsibility of the applicant; provides a current consumer credit score derived from the Fair Isaac Corporation's (FICO) scoring method; and includes information including payment history, credit rating, public filings in county, state, and federal courts, bankruptcies, business history, suits, liens, and judgments.

"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, 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.

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

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

"Nationally recognized credit agency" means an organization that obtains credit information on a nationwide basis; validates, updates, and maintains the accuracy of the credit information obtained; and obtains credit reports from at least two credit bureaus.

"Net worth" means assets minus liabilities. For purposes of this chapter, assets shall not include any property owned as tenants by the entirety.

"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.

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

"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 following individuals:

1. The sole proprietor of a sole proprietorship;

2. The partners of a general partnership;

3. The managing partners of a limited partnership;

4. The officers of a corporation;

5. The managers of a limited liability company;

6. The officers or directors of an association or both; 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 is created between a husband and wife and by which together they 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.

Part II
Entry

18VAC50-22-40. Requirements for a Class C license.

A. A firm applying for a Class C license must meet the requirements of this section.

B. For every classification or specialty in which the firm seeks to be licensed, the firm shall name a qualified individual who meets the following requirements:

1. Is at least 18 years old;

2. Has a minimum of two years experience in the classification or specialty for which he is the qualifier, 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;

3. Is a full-time employee of the firm as defined in this chapter or is a member of the responsible management of the firm or is a full-time employee of the firm as verified by the submission of copies of an I-9, a W-4, insurance documents, or other documentation acceptable to the board; and

4. a. Has obtained the appropriate certification for the following specialties:

Blast/explosive contracting (Department of Fire Programs explosive use certification)

Fire alarm (NICET level III or higher certification in fire protection: fire alarm systems or completion of a board-approved examination)

Fire sprinkler (NICET Sprinkler III certification) (NICET level III or higher certification in fire protection: water based systems layout or completion of a board-approved examination)

Manufactured home contracting (completion of a U.S. Department of Housing and Urban Development or Department of Housing and Community Development approved installers course)

Radon mitigation (EPA or DEQ (Virginia Department of Health accepted radon certification).

b. Has obtained, pursuant to the Individual Licensing and Certification Regulations (18VAC50-30), a master license for Plumbing plumbing, HVAC, Electrical electrical, Gas Fitting gas fitting, Natural Gas Fitting Provider natural gas fitting provider, and Liquefied Petroleum Gas Contracting liquefied petroleum gas contracting.

c. Has obtained, pursuant to the Individual Licensing and Certification Regulations, certification as an accessibility mechanic for accessibility services contracting, accessibility mechanic (LULA) for accessibility services contracting-LULA, Elevator Mechanic elevator mechanic for Elevator Escalator Contracting elevator escalator contracting and certification as a Water Well Systems Provider water well systems provider for Water Well/Pump Contracting water well/pump contracting.

d. Has obtained a lead supervisor license from the Virginia Board for Asbestos, Lead, and Home Inspectors for the lead abatement contracting specialty; an asbestos supervisor license from the Virginia Board for Asbestos, Lead, and Home Inspectors for the asbestos contracting specialty; and an onsite sewage systems professional installers license from the Board for Waterworks and Wastewater Works Operators and Onsite Sewage System Professionals for the sewage disposal systems contracting specialty.

e. Has completed a board-approved examination for all other classifications and specialties that do not require other certification or licensure.

C. The firm shall provide information for the past five years prior to application on any outstanding, past-due debts and judgments; outstanding tax obligations; defaults on bonds; or pending or past bankruptcies. The firm and all members of the responsible management of the firm shall submit information on any past-due debts and judgments or defaults on bonds directly related to the practice of contracting as defined in Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia. Each firm shall provide a credit report from a nationally recognized credit agency. The members of responsible management of the firm shall disclose information for the five years prior to the application on any outstanding past due debts or judgments, outstanding tax obligations, defaults on bonds related to the practice of contracting as defined in Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia, or pending or past bankruptcies.

D. The firm and all members of the responsible management of the firm shall disclose at the time of application any current or previous contractor licenses held in Virginia or in other jurisdictions and any disciplinary actions taken on these licenses. This includes but is not limited to any monetary penalties, fines, suspensions, revocations, surrender of a license in connection with a disciplinary action, or voluntary termination of a license in Virginia or in any other jurisdiction.

E. In accordance with § 54.1-204 of the Code of Virginia, all applicants shall disclose the following information about the firm, all members of the responsible management, and the qualified individual or individuals for the firm:

1. All misdemeanor convictions within three years of the date of application; and

2. All felony convictions during their lifetimes.

Any plea of nolo contendere shall be considered a conviction for purposes of this subsection. The record of a conviction received from a court shall be accepted as prima facie evidence of a conviction or finding of guilt. The board, in its discretion, may deny licensure to any applicant in accordance with § 54.1-204 of the Code of Virginia.

F. A member of responsible management shall have successfully completed a board-approved basic business course.

G. The firm shall provide a copy of a government-issued photo identification for each member of responsible management and for each of the qualified individuals.

H. All members of responsible management and each qualified individual must sign the application.

18VAC50-22-50. Requirements for a Class B license.

A. A firm applying for a Class B license must meet the requirements of this section.

B. A firm shall name a designated employee who meets the following requirements:

1. Is at least 18 years old;

2. Is a full-time employee of the firm as defined in this chapter, or is a member of responsible management as defined in this chapter member of responsible management of the firm or is a full-time employee of the firm as verified by the submission of copies of an I-9, a W-4, insurance documents, or other documentation acceptable to the board;

3. Has passed a board-approved examination as required by § 54.1-1108 of the Code of Virginia or has been exempted from the exam requirement in accordance with § 54.1-1108.1 of the Code of Virginia; and

4. Has followed all rules established by the board or by the testing service acting on behalf of the board with regard to conduct at the examination. Such rules shall include any written instructions communicated prior to the examination date and any oral or written instructions given at the site on the date of the exam.

C. For every classification or specialty in which the firm seeks to be licensed, the firm shall name a qualified individual who meets the following requirements:

1. Is at least 18 years old;

2. Has a minimum of three years experience in the classification or specialty for which he is the qualifier 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;

3. Is a full-time employee of the firm as defined in this chapter or is a member of the responsible management of the firm member of the responsible management of the firm or is a full-time employee of the firm as verified by the submission of copies of an I-9, a W-4, insurance documents, or other documentation acceptable to the board; and

4. a. Has obtained the appropriate certification for the following specialties:

Blast/explosive contracting (Department of Fire Programs explosive use certification)

Fire alarm (NICET level III or higher certification in fire protection: fire alarm systems or completion of a board-approved examination)

Fire sprinkler (NICET Sprinkler III certification) (NICET level III or higher certification in fire protection: water based systems layout or completion of a board-approved examination)

Manufactured home contracting (completion of a U.S. Department of Housing and Urban Development or Department of Housing and Community Development approved installers course)

Radon mitigation (EPA or DEQ (Virginia Department of Health accepted radon certification).

b. Has obtained, pursuant to the Individual Licensing and Certification Regulations (18VAC50-30), a master license for Plumbing plumbing, HVAC, Electrical electrical, Gas Fitting gas fitting, Natural Gas Fitting Provider natural gas fitting provider, and Liquefied Petroleum Gas Contracting liquefied petroleum gas contracting.

c. Has obtained, pursuant to the Individual Licensing and Certification Regulations, certification as an accessibility mechanic for accessibility services contracting, accessibility mechanic (LULA) for accessibility services contracting-LULA, Elevator Mechanic elevator mechanic for Elevator Escalator Contracting elevator escalator contracting and certification as a Water Well Systems Provider water well systems provider for Water Well/Pump Contracting water well/pump contracting.

d. Has obtained a lead supervisor license from the Virginia Board for Asbestos, Lead, and Home Inspectors for the lead abatement contracting specialty; an asbestos supervisor license from the Virginia Board for Asbestos, Lead, and Home Inspectors for the asbestos contracting specialty; and an onsite sewage systems professional installers license from the Board for Waterworks and Wastewater Works Operators and Onsite Sewage System Professionals for the sewage disposal systems contracting specialty.

e. Has completed a board-approved examination for all other classifications and specialties that do not require other certification or licensure.

D. Each firm shall submit on a form provided by the board information on its financial position. Excluding any property owned as tenants by the entirety, the firm shall state a net worth or equity of $15,000 or more. Assets listed on this form must be verified as being titled or owned by the firm, and documentation must be less than 60 days old for liquid assets and less than one year old for fixed assets. Property owned or titled as tenants by the entirety shall not be included as an asset or liability. In lieu of this form, the firm may submit a review or an audit conducted by a certified public accountant in accordance with the provisions of the American Institute of Certified Public Accountants guidelines that was completed within one year of the date of application or the most recently filed U.S. Securities and Exchange Commission form 10-K. In order to qualify for a Class B license, the firm must have a net worth or equity of $15,000 or more.

E. Each firm shall provide information for the five years prior to application on any outstanding, past-due debts and judgments; outstanding tax obligations; defaults on bonds; or pending or past bankruptcies. The firm, its designated employee, and all members of the responsible management of the firm shall submit information on any past-due debts and judgments or a credit report from a nationally recognized credit agency. The members of responsible management of the firm shall disclose at the time of application information for the five years prior to the application on any outstanding, past due debts or judgments, outstanding tax obligations, defaults on bonds directly related to the practice of contracting as defined in Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia, or pending or past bankruptcies.

F. The firm, the designated employee, and all members of the responsible management of the firm shall disclose at the time of application any current or previous substantial identities of interest with any contractor licenses issued in Virginia or in other jurisdictions and any disciplinary actions taken on these licenses. This includes but is not limited to any monetary penalties, fines, suspension, revocation, or surrender of a license in connection with a disciplinary action. The board, in its discretion, may deny licensure to any applicant when any of the parties listed above have had a substantial identity of interest (as deemed in § 54.1-1110 of the Code of Virginia) with any firm that has had a license suspended, revoked, voluntarily terminated or surrendered in connection with a disciplinary action in Virginia or any other jurisdiction.

G. In accordance with § 54.1-204 of the Code of Virginia, all applicants shall disclose the following information about the firm, designated employee, all members of the responsible management, and the qualified individual or individuals for the firm:

1. All misdemeanor convictions within three years of the date of application; and

2. All felony convictions during their lifetimes.

Any plea of nolo contendere shall be considered a conviction for purposes of this subsection. The record of a conviction received from a court shall be accepted as prima facie evidence of a conviction or finding of guilt. The board, in its discretion, may deny licensure to any applicant in accordance with § 54.1-204 of the Code of Virginia.

H. The designated employee or a member of responsible management shall have successfully completed a board-approved basic business course.

I. The firm shall provide a copy of a government-issued photo identification for each member of responsible management, for the designated employee, and for each of the qualified individuals.

J. All members of responsible management, the designated employee, and each qualified individual must sign the application.

18VAC50-22-60. Requirements for a Class A license.

A. A firm applying for a Class A license shall meet all of the requirements of this section.

B. A firm shall name a designated employee who meets the following requirements:

1. Is at least 18 years old;

2. Is a full-time employee of the firm as defined in this chapter or is a member of the responsible management of the firm as defined in this chapter; or is a full-time employee of the firm as verified by the submission of copies of an I-9, a W-4, insurance documents, or other documentation acceptable to the board;

3. Has passed a board-approved examination as required by § 54.1-1106 of the Code of Virginia or has been exempted from the exam requirement in accordance with § 54.1-1108.1 of the Code of Virginia; and

4. Has followed all rules established by the board or by the testing service acting on behalf of the board with regard to conduct at the examination. Such rules shall include any written instructions communicated prior to the examination date and any oral or written instructions given at the site on the day of the exam.

C. For every classification or specialty in which the firm seeks to be licensed, the firm shall name a qualified individual who meets the following requirements:

1. Is at least 18 years old;

2. Has a minimum of five years of experience in the classification or specialty for which he is the qualifier 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;

3. Is a member of responsible management of the firm or full-time employee of the firm as defined in this chapter or is a member of the firm as defined in this chapter or is a member of the responsible management of the firm; verified by the submission of copies of an I-9, a W-4, insurance documents, or other documentation acceptable to the board; and

4. a. Has obtained the appropriate certification for the following specialties:

Blast/explosive contracting (DHCD (Department of Fire Programs explosive use certification)

Fire alarm (NICET level III or higher certification in fire protection: fire alarm systems or completion of a board-approved examination)

Fire sprinkler (NICET Sprinkler III certification) (NICET level III or higher certification in fire protection: water based systems layout or completion of a board-approved examination)

Manufactured home contracting (completion of a U.S. Department of Housing and Urban Development or Department of Housing and Community Development approved installers course)

Radon mitigation (EPA or DEQ (Virginia Department of Health accepted radon certification).

b. Has obtained, pursuant to the Individual Licensing and Certification Regulations (18VAC50-30), a master license for Plumbing plumbing, HVAC, Electrical, Gas Fitting electrical, gas fitting, Natural Gas Fitting Provider natural gas fitting provider, and Liquefied Petroleum Gas Contracting liquefied petroleum gas contracting.

c. Has obtained, pursuant to the Individual Licensing and Certification Regulations, certification as an accessibility mechanic for accessibility services contracting accessibility mechanic (LULA) for accessibility services contracting-LULA, Elevator Mechanic elevator mechanic for Elevator Escalator Contracting elevator escalator contracting and certification as a Water Well Systems Provider water well systems provider for Water Well/Pump Contracting water well/pump contracting.

d. Has obtained a lead supervisor license from the Virginia Board for Asbestos, Lead, and Home Inspectors for the lead abatement contracting specialty; an asbestos supervisor license from the Virginia Board for Asbestos, Lead, and Home Inspectors for the asbestos contracting specialty; and an onsite sewage systems professional installers license from the Board for Waterworks and Wastewater Works Operators and Onsite Sewage System Professionals for the sewage disposal systems contracting specialty.

e. Has completed a board-approved examination for all other classifications and specialties that do not require other certification or licensure.

D. Each firm shall submit on a form provided by the board information on its financial position. Excluding any property owned as tenants by the entirety, the firm shall state a net worth or equity of $45,000. Assets listed on this form must be verified as being titled or owned by the firm, and documentation must be less than 60 days old for liquid assets and less than one year old for fixed assets. Property owned or titled as tenants by the entirety shall not be included as an asset or liability. In lieu of this form, the firm may submit a review or an audit conducted by a certified public accountant in accordance with the provisions of the American Institute of Certified Public Accountants guidelines that was completed within one year of the date of application or the most recently filed U.S. Securities and Exchange Commission form 10-K. In order to qualify for a Class A license the firm must have a net worth or equity of $45,000 or more.

E. The firm shall provide information for the five years prior to application on any outstanding, past-due debts and judgments; outstanding tax obligations; defaults on bonds; or pending or past bankruptcies. The firm, its designated employee, and all members of the responsible management of the firm shall submit information on any past-due debts and judgments or a credit report from a nationally recognized credit agency. The members of responsible management of the firm shall disclose, at the time of application, information for the five years prior to the application on any outstanding, past due debts or judgments, outstanding tax obligations, defaults on bonds directly related to the practice of contracting as defined in Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia, or pending or past bankruptcies.

F. The firm, the designated employee, and all members of the responsible management of the firm shall disclose at the time of application any current or previous substantial identities of interest with any contractor licenses issued in Virginia or in other jurisdictions and any disciplinary actions taken on these licenses. This includes but is not limited to, any monetary penalties, fines, suspensions, revocations, or surrender of a license in connection with a disciplinary action. The board, in its discretion, may deny licensure to any applicant when any of the parties listed above have had a substantial identity of interest (as deemed in § 54.1-1110 of the Code of Virginia) with any firm that has had a license suspended, revoked, voluntarily terminated, or surrendered in connection with a disciplinary action in Virginia or in any other jurisdiction.

G. In accordance with § 54.1-204 of the Code of Virginia, all applicants shall disclose the following information about the firm, all members of the responsible management, the designated employee and the qualified individual or individuals for the firm:

1. All misdemeanor convictions within three years of the date of application; and

2. All felony convictions during their lifetimes.

Any plea of nolo contendere shall be considered a conviction for purposes of this subsection. The record of a conviction received from a court shall be accepted as prima facie evidence of a conviction or finding of guilt. The board, in its discretion, may deny licensure to any applicant in accordance with § 54.1-204 of the Code of Virginia.

H. The designated employee or a member of responsible management shall have successfully completed a board-approved basic business course.

I. The firm shall provide a copy of a government-issued photo identification for each member of responsible management, for the designated employee, and for each of the qualified individuals.

J. All members of responsible management, the designated employee, and each qualified individual must sign the application.

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

A. Any change in the officers of a corporation, managers of a limited liability company, or officers or directors of an association shall be reported to the board in writing on a form provided by the board within 90 days of the change. The new member of responsible management must provide the following:

1. A copy of a government-issued photo identification.

2. Information for the five years prior to the application on any outstanding past due debts or judgments, outstanding tax obligations, defaults on bonds related to the practice of contracting as defined in Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia, or pending or past bankruptcies.

3. At the time of application, information regarding any current or previous contractor licenses held in Virginia or in other jurisdictions and any disciplinary actions taken on these licenses. This includes any monetary penalties, fines, suspensions, revocations, surrender of a license in connection with a disciplinary action, or voluntary termination of a license in Virginia or in any other jurisdiction.

4. In accordance with § 54.1-204 of the Code of Virginia, documentation of all misdemeanor convictions within three years of the date of the application and all felony convictions during his lifetime.

B. Any change of designated employee shall be reported on a form provided by the board within 90 days of the change. The new designated employee for a Class B licensee shall meet the requirements of 18VAC50-22-50 B. The new designated employee for a Class A licensee shall meet the requirements of 18VAC50-22-60 B.

C. Any change of qualified individual shall be reported on a form provided by the board within 45 days of the change. The new qualified individual for a Class C licensee shall meet the requirements of 18VAC50-22-40 B. The new qualified individual for a Class B licensee shall meet the requirements of 18VAC50-22-50 C. The new qualified individual for a Class A licensee shall 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 be reported in writing to the board on a form provided by the board within 30 days of the change. The board shall 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 be reported in writing to the board on a form provided by the board within 30 days of the change. The board shall 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.

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

A. Each provider of a prelicense education course 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;

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 or numbers 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 DMV control number; 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.

C. At least once every two calendar years, all providers must have at least one representative attend a monthly Board for Contractors remedial education course.

VA.R. Doc. No. R15-4414; Filed June 3, 2016, 9:55 a.m.