Arizona Registrar of Contractors

   Monday September 01, 2014 02:02 PM Contact FAQ Site Map  

Attention ROC Customers

The ROC is currently unable to accept payment by credit or debit cards in person. Card payments are again available on our Online Renewal Site. In office payments at the Phoenix office can still be made by cashier’s check, money order, check, or cash. We apologize for any inconvenience this may cause.

Summary of rule changes effective July 1, 2014


  1. License classifications
    1. This rulemaking changes the letter designation for specialty contractor classifications:
      1. The specialty residential license designation will change from “C” to “R” (see R4-9-103).
      2. The specialty commercial license designation will change from “L” to “C” (see R4-9-102).
      3. The specialty dual license designation will change from “K” to “CR” (see R4-9-104).
      4. Many people have been confused and thought that “C” represented commercial rather than residential. The changes of letter designation will reduce confusion by having “C” indicate commercial, “R” indicate residential, and “CR” indicate commercial and residential.
    2. The six digit license numbers will not be impacted by the change in letter designation. For example, license C-123456 would change to license number R-123456.
    3. For licenses with dollar maximums, this rulemaking allows the licensee to perform more projects by increasing the dollar limitation.
      1. The B-2 General Small Commercial Contractor scope increases from $250,000 to $750,000.
      2. The C-61 Limited Remodeling and Repair Contractor (now CR-61 Carpentry, Remodeling and Repairs scope increases from $25,000 to $50,000.
      3. The C-62 Minor Home Improvements scope increases from $2,500 to $5,000.
    4. This rulemaking changes the classification of roughly 25% of existing licensees.
      1. Arizona is unlike other states in the way it differentiates between commercial and residential contractor licenses. As a result, Arizona has 238 license classifications, which is far more than other states.
      2. This rulemaking reduces the number of license classifications by consolidating many commercial and residential licenses into the comparable dual license. For example, the residential sign license (C-38) and the commercial sign license (L-38) will be consolidated with the dual sign license (formerly K-38, now CR-38). Currently only one person has a residential sign license.
      3. License classifications that are affected by these reclassifications were chosen based on substantial similarities between the work performed on commercial and residential properties, and low counts of licenses in the classifications. Most of these classifications already take the same exam for the commercial, residential and dual license classifications. Where the reclassifications cause a change in exam, the licensee is "grandfathered in" without having to take a new exam.
      4. The rule on license reclassifications includes the following table showing the licenses that will undergo a change in classification (see R4-9-107).
    5. These license reclassifications will occur automatically, without any action taken by licensees. Where the reclassifications cause a change in license fee, the different fee amount is not required until the next license renewal.
    6. These license reclassifications will result in some licensees having two of the same license. For example, if a licensee has both an L-1 and a C-1 license, each will be reclassified into CR-1 license. In these situations, the licensee would save money by cancelling one of the licenses. The ROC will not cancel a license without the person submitting a LICENSE CANCELLATION FORM for one of the licenses. Previously paid license fees won't be refunded.


  2. Fees for new licenses
    1. This rulemaking will decrease fees for all new licenses (see R4-9-130).
    2. This rulemaking will clarify the fee amount by showing the application and license fees separately.

     

    Current

     

    Effective July 1, 2014

     

     

    Application & License Fee

    Recovery Fund

    Total

     

    App.

    Fee

    Lic. Fee

    Recovery Fund

    Total

    Change

    General Commercial

    $890

    $0

    $890

     

    $200

    $580

    $0

    $780

    $(110)

    Specialty Commercial

    $645

    $0

    $645

     

    $100

    $480

    $0

    $580

    $(65)

    General Residential

    $445

    $450

    $895

     

    $180

    $320

    $370

    $870

    $(25)

    Specialty Residential

    $320

    $450

    $770

     

    $80

    $270

    $370

    $720

    $(50)

    General Dual

    $1,105

    $450

    $1,555

     

    $200

    $480

    $370

    $1,050

    $(505)

    Specialty Dual

    $815

    $450

    $1,265

     

    $100

    $380

    $370

    $850

    $(415)

     

  3. Fees for renewal licenses
    1. Fees for renewal licenses are found in R4-9-130.
    2. For the nearly 75% of licensees not impacted by the reclassifications, this rulemaking will;
      1. decrease fees for specialty commercial ($10), general dual ($410) and specialty dual ($380) classifications; and
      2. result in no change of fees for general commercial, general residential and specialty residential classifications.


      3. No change in classification

        Current

         

        Effective July 1, 2014

         

         

        License Fee

        Recovery Fund

        Total

         

        License Fee

        Recovery Fund

        Total

        Change

        General Commercial

        $580

        $0

        $580

         

        $580

        $0

        $580

        $0

        Specialty Commercial

        $490

        $0

        $490

         

        $480

        $0

        $480

        $(10)

        General Residential

        $290

        $300

        $590

         

        $320

        $270

        $590

        $0

        Specialty Residential

        $240

        $300

        $540

         

        $270

        $270

        $540

        $0

        General Dual

        $860

        $300

        $1,160

         

        $480

        $270

        $750

        $(410)

        Specialty Dual

        $730

        $300

        $1,030

         

        $380

        $270

        $650

        $(380)


    3. For the roughly 25% of licensees impacted by the reclassifications, this rulemaking will increase fees for the general commercial ($170), specialty commercial ($160), general residential ($160) and specialty residential ($110) classifications.


    4. Change from commercial or residential into a dual classification

      Current

       

      Effective July 1, 2014

       

       

      License Fee

      Recovery Fund

      Total

       

      License Fee

      Recovery Fund

      Total

      Change

      General Commercial

      $580

      $0

      $580

       

      $480

      $270

      $750

      $170

      Specialty Commercial

      $490

      $0

      $490

       

      $380

      $270

      $650

      $160

      General Residential

      $290

      $300

      $590

       

      $480

      $270

      $750

      $160

      Specialty Residential

      $240

      $300

      $540

       

      $380

      $270

      $650

      $110


    5. License fees have not changed since 2001. These fee increases are less than would have occurred under an inflation adjustment.
    6. These licenses may benefit from an expanded license scope from solely residential or commercial to both residential and commercial.
  4. Bond amounts
    1. This rulemaking increases nearly all bond amounts (see R4-9-112).
    2. Most bonds have not changed since at least 1973. These bond increases are significantly less than would have occurred under an inflation adjustment.
    3. These bond increases will provide additional protection for those (homeowners and contractors) injured by a licensee.
    4. Bond changes don’t become enforceable until the next license renewal after June 30, 2014. For example, a license renewed in June 2014 will not need to update their bond amount until their next renewal period in June 2016; but a license due to be renewed in July 2014 will be required to provide an updated bond with their renewal during July 2014. This will allow the bond changes to be spaced out over a period of two years.
    5.  

      License Category

       Estimated
       Annual Volume
      (Per License Category)

      Current Bond Amount

      Bond Amount on Licenses Renewed After July 1, 2014

      Change

      1. General Commercial Contracting and Engineering Contracting

      Less than $150,000

      $5,000

      $5,000

      $0

       

      $150,000 or more, but less than $500,000

      $10,000

      $15,000

      $5,000

       

      $500,000 or more, but less than $1,000,000

      $15,000

      $25,000

      $10,000

       

      $1,000,000 or more, but less than $5,000,000

      $40,000

      $50,000

      $10,000

       

      $5,000,000 or more, but less than $10,000,000

      $65,000

      $75,000

      $10,000

       

      $10,000,000 or more

      $90,000

      $100,000

      $10,000

      2. Specialty Commercial Contracting

      Less than $150,000

      $2,500

      $2,500

      $0

       

      $150,000 or more, but less than $500,000

      $5,000

      $7,000

      $2,000

       

      $500,000 or more, but less than $1,000,000

      $10,000

      $17,500

      $7,500

       

      $1,000,000 or more, but less than $5,000,000

      $20,000

      $25,000

      $5,000

       

      $5,000,000 or more, but less than $10,000,000

      $32,500

      $37,500

      $5,000

       

      $10,000,000 or more

      $45,000

      $50,000

      $5,000

      3. General Residential Contracting

      Less than $150,000

      $5,000

      $9,000

      $4,000

       

      $150,000 or more, but less than $750,000

      $9,000

      $9,000

      $0

       

      $750,000 or more

      $15,000

      $15,000

      $0

      4. Specialty Residential Contracting

      Less than $100,000

      $1,000

      $4,250

      $3,250

       

      $100,000 or more, but less than $375,000

      $4,250

      $4,250

      $0

       

      $375,000 or more

      $7,500

      $7,500

      $0

  5. Applications for new licenses submitted on or after July 1, 2014
    1. As described in the sections above, this rulemaking makes changes to license classifications, fees and bonds. Please make sure any application submitted on or after July 1, 2014 adapt to these changes.
    2. The application must be for a classification that is available after the changes, and should contain the correct letter designation for the classification (see section above).
    3. The applicant must have taken the correct trade exam (see section above). Nearly 70% of the affected classifications have the same trade exam; approximately 26% of the affected classifications change from no trade exam to a trade exam; and roughly 4% of the classifications require a different exam.
    4. The application must contain the correct fee amount (see section above).
    5. The application must contain the correct bond amount (see section above).
  6. Other key clarifications
    1. Rewording of license scopes to address common confusion in scopes of work (see R4-9-102, R4-9-103, R4-9-104).
    2. Noting that the Registrar may waive a trade exam where the qualifying party has been the qualifying party within the preceding five years for a license in good standing in the same classification in this state, or a classification the Registrar deems comparable in another state (see R4-9-106).
    3. Updating the rule on “workmanship standards” to use gender-neutral language and clarify the meaning of “professional industry standards” (see R4-9-108).
    4. Adding a rule describing communication with the agency that is unauthorized to avoid the possibility of prejudice in proceedings before the agency (see R4-9-121).


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