National Association of State Contractors Licensing Agencies

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National

Association of

State

Contractors

Licensing

Agencies

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T A B L E O F C O N T E N T S

2011 Annual Conference

State Reports

Alabama Electrical Contractors Board ... 1

Alabama Board of Heating, Air Conditioning and Refrigeration Contractors ... 3

Arizona Registrar of Contractors ... 6

Arkansas Contractors Licensing Board ... 9

California Contractors State License Board ... 11

Colorado Department of Regulatory Agencies ... 15

Florida Electrical Contractors Licensing Board ... 19

Hawaii Contractors License Board ... 22

Idaho Bureau of Occupational Licenses, State Contractors Board ... 24

Louisiana State Licensing Board for Contractors ... 26

Mississippi State Board of Contractors ... 29

Nevada State Contractors Board ... 31

New Mexico Construction Industries Board ... 34

North Carolina State Board of Examiners of Electrical Contractors ... 36

North Carolina Licensing Board for General Contractors... 40

Oklahoma Construction Industries Board ... 43

Oregon Construction Contractors Board ... 46

Rhode Island Contractors’ Registration and Licensing Board ... 54

South Carolina Contractors Licensing Board ... 57

Tennessee Board for Licensing Contractors ... 58

Texas Department of Licensing and Regulation ... 60

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ALABAMA ELECTRICAL CONTRACTORS BOARD Keith E. Warren, Executive Director

610 S. McDonough Street Montgomery, AL 36104

334-269-9990 www.aecb.alabama.gov Report for the State of Alabama

Electrical Contractors Board

I. A Brief Description of Who You Regulate:

a. The Alabama Electrical Contractors Board regulates electrical contractors and journeyman electricians that are licensed by the Board. The Board was successful in having major changes to its statutes during the 2010 Legislative Session. Individuals passing (70% or higher) a nationally standardized proctored

examination administered by any city or county in the State of Alabama will have one year to make application, meet the current qualifications and be issued a license without further examinations. Individuals not meeting these qualifications will be required to register for a provisional license and also be required to take an examination once a year to maintain this license and to continue to work in the areas in which they are currently licensed. After January 1, 2012, all individuals performing electrical work in the state will be required to have or obtain a license from this Board.

II. Size and Responsibility of Your Agency:

a. Currently, this Board oversees approximately 3000 electrical contractors and 400 Journeyman Electricians

III. Requirements For Licensure:

a. New Qualifications for Electrical Contractor and Journeyman Electrician Licenses are as follows:

i. Electrical Contractor

1. You must complete the application, have a Work Affidavit(s) completed to document 8,000 hours of experience by a current or past employer and attach a cashier’s check or money order in the amount of $165.00. The application must be signed, notarized and

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have a current photograph (2 x 2 passport size) attached in the appropriate area.

2. The required experience to qualify for this examination is to be in the commercial, industrial or residential fields. You must have held a supervisory or managerial position for the required amount of time. Maintenance experience of any type will not be counted towards the required amount of time. The Work Affidavit must be completed by someone in the Human Resources Department, Company president/CEO, Electrical Contractor, Master

Electrician, Electrical Engineer or Electrical Inspector. You cannot sign your own employment affidavit even if you are

self-employed. If you are self-employed and there is no one listed above that is available to sign a work affidavit, you must write a letter detailing the dates you went into business and a description of the electrical experience acquired in the business.

ii. Journeyman Electrician

1. You must complete the application, have a Work Affidavit(s) completed to document 8,000 hours of experience by a current or past employer and attach a cashier’s check or money order in the amount of $115.00. The application must be signed, notarized and have a current photograph attached in the appropriate area.

2. The Work Affidavit(s) must be completed by someone in the Human Resources Department, Company President/CEO, Electrician Contractor, Master Electrician, Electrical Engineer or Electrical Inspector. You cannot sign your own work affidavit. You can provide hours on a Work Affidavit or Notarized

Statement from a certified apprenticeship program that is certified by the Department of Labor. Hours being certified through an apprenticeship program must be verified (signed) by the Program Director, Executive Director or a responsible party of the program. iii. Qualified Education

1. You are eligible to receive credit towards your experience from education obtained from vocation, post-secondary, or college level programs. You must document this education on the application and submit transcripts of this program in order to receive credit. b. The currently reciprocates with Georgia, North Carolina, South Carolina,

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STATE OF ALABAMA

BOARD OF HEATING, AIR CONDITIONING

AND REFRIGERATION CONTRACTORS

8 Commerce Street, Suite 200 PO Box 305025 Montgomery, Alabama 36130-5025 (334) 241-0840 Dr. Robert Bentley GOVERNOR Fax: (334) 265-0570 www.hacr.alabama.gov Kathy S. LeCroix EXECUTIVE DIRECTOR

Report for the State of Alabama

Board of Heating, Air Conditioning and Refrigeration Contractors

a. The Board regulates licensing for heating and air conditioning contractors, as well as, refrigeration contractors. There are currently 4,057 active and inactive licensed heating and air conditioning contractors and 1,565 active and inactive licensed refrigeration contractors.

a. The agency includes the Executive Director, seven staff, and two investigators. The responsibility of the agency involves the day-to-day operations of the office and all facets of licensing. These include processing exam applications, issuing licenses upon verification that all criteria is met, updating contractors’ files with continuing education (CE) requirements, and processing and investigating complaints against licensed and unlicensed contractors. As a state agency, the staff is also required to maintain an inventory of property valued at $500.00 or greater, as well as, manage the maintenance of permanent records and files. The staff is also an integral liaison in the maintenance and function of the database and website.

The Board is comprised of 12 appointed members. The responsibility of the Board is to ensure proper standards and requirements are in place as guidelines for licensing in the state. The Board has established a Continuing Education Committee and Investigative Committee. The CE Committee reviews applications for new CE providers and has established CE requirements for contractors. The Investigative Committee reviews all complaint cases and proposes to the Board any disciplinary action against the contractor in the form of a fine, CE requirements, suspension, and/or revocation of license.

There are no statistics available on complaints or hearings. III.Requirements for Licensure:

a. The following are the licensure requirements regarding examinations, experience, and performance bond.

Heating and Air Conditioning Contractors: Applicants are required to pass a written open book trade examination with a minimum score of 67.5 percent. The exam fee is $150.00. Applicants must meet either minimum work experience or education requirements in order to qualify to sit for the exam. The requirements include one of the following: maintaining an apprentice registration issued by the Board for two or more calendar years; completion of 3,000 hours of course work or work experience as 3

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defined by the Board; or is a graduate of an approved heating and air conditioning curriculum.

A performance bond in the amount of $15,000.00 is required of each heating and air conditioning business. Every contractor, active or inactive, must complete four hours of continuing education each year. Certification expires December 31st of each year. The annual active license fee is $165.00 and the annual inactive license fee is $82.50. Each heating and air conditioning business must have at least one regularly employed person who possesses an active heating and air conditioning contractor’s license. Contractors may perform work up to a $50,000.00 maximum. Service, repair, or installation beyond the $50,000.00 threshold requires a General Contractor’s license in addition to the heating and air conditioning license.

Alabama currently has reciprocity agreements with Louisiana, Mississippi, and Tennessee. Contractors are required to be in good standing with a valid heating and air conditioning license.

Refrigeration Contractors: Currently, a refrigeration license can be obtained through a grandfathering provision which ends December 31, 2011. This provision allows for sufficient experience in the refrigeration business, as defined by the Board, if the applicant has been engaged in the refrigeration business for a period of two years prior to August 1, 2009.

If the applicant does not meet the qualifications for the grandfathering provision then the applicant has to pass a written open book trade examination with a minimum score of 67.5 percent. Applicants must meet either the minimum work experience or education requirements in order to qualify to sit for the exam. The requirements include one of the following: maintaining an apprentice registration issued by the Board for two or more calendar years; completion of 3,000 hours of course work or work experience as defined by the Board; or is a graduate of an approved refrigeration curriculum.

Contractors may perform work up to a $50,000.00 maximum. Service, repair, or installation beyond the $50,000.00 threshold would require a General Contractor’s license in addition to the refrigeration license.

A performance bond in the amount of $15,000.00 is required of each commercial refrigeration business. Every contractor, active or inactive, must complete four hours of continuing education each year. Certification expires December 31st each year. The exam fee is $150.00 with the annual active fee of $165.00 and the annual inactive fee of $82.50.

The Board does not reciprocate contractor refrigeration licenses with any state at this time.

IV.Recent Changes To:

a. Listed below is a synopsis of current changes to the law.

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- Penalties by the Board may include administrative fines of not more than $2,000.000 for each violation.

- Contractors shall be required to attain four credit hours of CE every year.

- Certified contractors may not permit the use of their license by any other persons. 34-31-24(c)

- Certification by the Board is required for work involving air duct cleaning, services, filter changing services, replacement of air filters or filter media, and the cleaning of heating, air conditioning, or refrigeration equipment or systems.

- Realty management companies are required to have at least one licensed person employed by the realty management company who manages property owned by others if they perform heating, air conditioning, or refrigeration installation, service, or repair work.

V. Possible Upcoming Changes To:

a. Currently the Board does not have any upcoming changes to legislation that is pending or to be introduced; however, the grandfathering provision for refrigeration contractors ends December 31, 2011. Beginning January 1, 2012, anyone wishing to acquire a refrigeration license will have to meet the minimum requirements to sit for the exam.

VI.Any Unique Situation or Problem:

a. At this time, the Board does not have any topics for discussion.

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(602) 542-1525 (520) 628-6345 AZ Toll-free (877) MY ROC (1-877-692-9762)

Janice K. Brewer, Governor William Mundell, Director

Report from the State of Arizona Registrar of Contractors

I. A brief description of who you regulate:

a. We regulate both residential and commercial contracting.

b. We have 69 residential classifications, 65 commercial license classifications and 59 dual license classifications listed by rule.

c. We have over 58,000 licenses on file (some licensees hold multiple licenses). II. Size and responsibility of your agency:

a. Arizona does not have a board, we have a director and 151.8 (100 filled) agency positions state wide.

b. We currently have 8 offices throughout the state.

c. The Agency is responsible for regulating construction contractors. d. In fiscal year 2010, we

i. Received 6,431 complaints against licensed contractors, ii. Received 1,985 complaints against unlicensed contractors, and iii. Sent 3,153 citations and disciplined 2,472 licenses.

III. Requirements for licensure:

a. An Arizona business/law examination is required to obtain a contractor license and depending on the license classification being sought, there may be a trade examination required as well.

b. Typically a minimum of 4 years of experience is required to obtain a license.

i. At least 2 of which must have been within the last ten years dealing specifically with the type of construction, or its equivalent for which the applicant is applying for a license is required.

c. Varying bond amounts are required. IV. Recent changes to Legislation:

a. See following pages

b. No changes to rules or other responsibilities. V. Possible upcoming changes to legislation:

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Recent changes to Legislation: (a) Statute

Senate Bill 1085 makes the following changes, effective 4/12/2011, to laws affecting contractors. 1. ARS §§ 32-1129.01, 32-1129.02 establish the process for progress payment schedules on

construction projects. This section is often referred to as “Arizona’s Prompt Pay Act.” Senate Bill 1085 corrects (redirects) internal references to properly point to the described sections within the act.

Senate Bill 1284 makes the following five changes, effective 7/20/2011, to laws affecting the ROC and stakeholders.

1. ARS §§ 32-1155, 32-1156, 32-1157 outline the administrative process for the ROC to assist in the resolution of complaints against licensed contractors. Senate Bill 1284 establishes an arbitration process in ARS § 32-1155.01 to resolve complaints filed with the ROC. For complaints valued less than $5,000 the Registrar may require parties to go through the arbitration rather than the administrative process. For complaints above $5,000 parties may opt into the arbitration process.

2. ARS § 32-1154(F) establishes the process whereby a homeowner may receive

compensation from the Residential Contractors’ Recovery Fund. Currently payments are authorized if a contractor’s license has been disciplined and the “contractor refuses or is unable to comply with the order of the registrar to remedy the violation.” Senate Bill 1284 strikes the language “…refuses or is unable to comply...” This change will

authorize the processing of recovery fund claims after a contractor’s license is disciplined through the administrative or arbitration process. Striking this language also enables the Registrar of impose discipline less than suspension or revocation, while allowing the complainant access to restitution. For example, this includes after a time limited suspensions (e.g. 5 days) rather than solely after a compliance suspension.

3. ARS § 32-1139(A) requires the ROC to pay recovery fund claims based on the date of the order. Senate Bill 1284 strikes the language requiring claims to be paid based on the date of the order and authorizes payment of claims based on a pro rata share of the common liability. The maximum liability for recovery fund participating contractors is currently $200,000 per license and $30,000 per individual. This change will authorize paying all known injured claimants in a max out claim rather than those who were first in obtaining an order.

4. Pursuant to ARS § 32-1138 the ROC has the responsibility to seek repayment of claims paid to homeowners from the recovery fund through subrogation. In order to enforce this statute, the ROC currently sends a letter to homeowners receiving payment from the recovery fund requesting written authorization assigning the rights of recovery against the contractor to the ROC. After homeowners return this written form, the ROC pursues subrogation efforts against the contractor. Senate Bill 1284 eliminates this needless step of requesting the claimant’s authorization by deeming a homeowner who is paid from the fund to have automatically assigned to the Registrar the right of recovery to the extent of a recovery fund award.

5. ARS § 32-1134.01 authorizes the Registrar to issue an emergency assessment on participating contractors when the Recovery Fund balance is below $2 million. Senate Bill 1284 repeals this section.

Senate Bill 1458 makes the following changes, effective 7/20/2011, to laws affecting the ROC. 1. ARS § 32-4301 extends, upon notification from the licensee, the expiration of licenses

for members of the Arizona national guard or the United States armed forces while the member is on active duty until 180 days after the member returns from active duty.

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Senate Bill 1458 adds ARS § 32-4302 which waives the licensing examination for individuals who 1) are moving to Arizona because of the relocation of an active duty spouse, 2) have a similar license in good standing in another state, 3) pay the appropriate fees, and 4) meet several other related criteria. This bill does not affect other existing reciprocity agreements.

Senate Bill 1623 makes the following change, effective 7/1/2011, to laws affecting the ROC. 1. Notwithstanding section ARS § 32-1134, the ROC is authorized to operate the recovery

fund with 14% of the prior year deposits rather than 10% of the fund balance.

House Bill 2102 makes the following change, effective 7/20/2011, to laws affecting the ROC. 1. ARS § 41-1080 stipulates that an agency or political subdivision cannot issue a license to

an individual who does not provide documentation of citizenship or alien status (license means any agency permit, certificate, approval or registration that is required by law). House Bill 2102 requires presentation of a government issued document containing a photograph if the documentation used to establish lawful presence does not contain a photograph of the individual.

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State

Of

Arkansas

CONTRACTORS LICENSING BOARD

4100 Richards Road North Little Rock, Arkansas 72117 501 / 372-4661

I. A Brief Description of Who You Regulate: a. Residential and/or Commercial –

Commercial – We regulate both prime contractors and subcontractors, if their portion of a project is $20,000 or more.

Residential – We regulate “General Contractors” building a new residence. Remodeling or repair work is not covered. However, pursuant to Act 1208 of 2011, starting on January 1, 2012, the licensing law will cover residential remodeling and repair projects of $2,000 and above.

b. Classifications or trades –

Commercial - We have 7 major classifications; heavy construction, highway, railroad & airport, municipal & utility, building, light building, mechanical, and electrical. We also have a host of specialty classifications. Residential – We have two major classifications, residential builder and residential remodeler. We also have a host of specialty classifications. c. Number of licensees – At the present time we have approximately

6,925 residential and commercial licensees in the state. II. Size and Responsibility of Your Agency:

a. Staff and board size – Our Agency has a staff of 18 people that handle the responsibilities of the Agency. The Contractors Licensing Board and the Residential Committee are made up of 7 members each. Both the Board and the Committee are appointed by the Governor and approved by the Senate.

b. Number of offices – We have one office in the State of Arkansas, which is centrally located in North Little Rock.

c. Responsible for what functions vs. what services are provided by other departments – There are other departments that issue trade licenses or certificates such as HVAC, plumbing, electrical, elevator, boilers, asbestos abatement, lead abatement, etc. These are all housed in various other agencies. However, we do insure when a contractor requests these

particular classifications that they have met certain requirements with those agencies.

d. Any statistics on complaints, hearings, etc. – We received 152 complaints against contractors. Those complaints lead to the formal revocation or suspension of 10 licenses and none surrendered their license in lieu of a hearing.

We held 328 hearings. Most hearings are for unlicensed activity. Civil penalties of $1,079,488 were imposed.

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III. Requirements for Licensure:

a. Examinations – We require a Business and Law examination.

b. Experience – We require 5 years of verifiable experience for a commercial license. For a residential builder license we require 4 years of experience. For a residential remodeler license we require 2 years of experience. For a residential specialty license the experience required varies depending upon the specialty trade in question.

c. Financial responsibility (financial statements, bonds, recovery fund, etc.) – On the commercial side we require an audited financial statement for a new application and the contractor can use a reviewed financial statement to renew thereafter. A $10,000 surety bond for the commercial license is also required. On the residential side we require a compiled financial statement that shows a positive net worth. We do not require continuing education as a matter of licensure at this time.

IV. Recent Changes To: a. Legislation –

Commercial – In the 2011 Legislative Session, the requirement of submitting an audited financial statement upon initial application was modified to accept a reviewed financial statement upon initial application. Residential – As noted above a major change in our residential licensing statute was made in 2011. Effective January 1, 2012 a license will be required for all residential remodel and repair projects of $2,000 and above. Previously the Committee did not regulate residential remodel and repair projects at all.

b. Rules & Regulations – The Rules & Regulations of both the Commercial Board and Residential Committee will be modified to reflect the legislative changes in the 2011 session.

c. Responsibilities – N/A V. Possible Upcoming Changes To:

a. Legislation introduced or pending – We do not foresee any changes until mid year 2013. The next Legislative Session will be in January 2013. b. Study commissions or the like – A Bill requiring the Board to investigate

and penalize contractors for the hiring of illegal immigrants was placed in Interim Study at the conclusion of the 2011 Legislative Session. We anticipate the sponsor of the Bill will again file a similar Bill in 2013. VI. Any Unique Situation or Problem:

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CONTRACTORS STATE LICENSE BOARD STATE OF CALIFORNIA 9821 Business Park Drive, Sacramento, California 95827 Governor Edmund G. Brown Jr. Mailing Address: P.O. Box 26000, Sacramento, CA 95826

800-321-CSLB (2752)

www.cslb.ca.gov ▪ CheckTheLicenseFirst.com

NASCLA – 2011 ANNUAL CONFERENCE REPORT FROM THE STATE OF CALIFORNIA

CONTRACTORS STATE LICENSE BOARD

I. Description of Who is Regulated:

a. The CSLB is responsible for the licensing and regulation of contractors

performing work in California. All contractors performing work in the amount of $500 or more are required to be licensed. No distinction is made between

residential and commercial contractors, and license requirements are the same for all applicants. Licensees who perform asbestos abatement or hazardous substance removal must hold the appropriate certification. Home improvement salespersons who solicit work on behalf of a licensed contractor must register with the Board. b. There are two general license classifications, general engineering and general

building, and 41 specialty license classifications. There are approximately 305,160 licensees holding nearly 382,785 classifications (multiple classifications can be listed on a license). Approximately 1,530 licensees hold the Asbestos Certification and 2,744 hold the Hazardous Substance Removal Certification. There are approximately 8,020 active Home Improvement Salespersons registered with the Board.

a. A fifteen-member board directs administrative policy for the agency's operations. The Board includes five contractor members (two general building contractors, one general engineering contractor, and two specialty contractors) and ten non-contractor members (one member from a labor organization representing the building trades, one member being an active local building official, and eight public members, one being from a statewide senior citizen organization). Board member appointments are made by the Governor and the Legislature. The fifteen-member Board appoints the Registrar of Contractors who oversees approximately 400 employees in ten (10) offices throughout the state. b. The CSLB is divided into three main divisions: enforcement, licensing, and

administration.

c. The Enforcement Division, which includes all field offices, is responsible for intake, mediation, and investigation of complaints against both licensed and

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unlicensed contractors. The Enforcement Division includes a Statewide Investigative Fraud Team (SWIFT) whose primary purpose is to combat unlicensed contractor activity.

d. Enforcement Division statistics for fiscal year 2010/11 (does not include June 2011):

Complaints received: 17,925 Complaints closed: 18,722 Complaints mediated: 8,967

Complaints closed to arbitration: 570 Mandatory (480)

Voluntary (90)

Complaints closed to citations: 1,372 Licensee (633)

Non-licensee (739)

Complaints closed to accusation: 428

Complaints closed to criminal referral: 1,084 Licensee (151)

Non-licensee (933)

Disciplinary license suspensions: 447 Licenses revoked: 581

e. The Licensing Division is responsible for the review and issuance of license applications and for processing renewals, bonds, and other documents required for maintenance of a license. The division also includes the Board’s main call center and public counter.

f. Licensing Division statistics for fiscal year 2010/11 (does not include June 2010): Original license applications received: 18,502

New licenses issued: 13,709

License renewals processed: 110,156 Judgments/Outstanding Liabilities

Processed: 3,298

Savings to public: $35,312,408 Bond Payment of Claims

Processed: 2,154

Savings to public: $5,354,793

g. The Testing Division is responsible for the development, validation, and administration of all licensing examinations. The Board's test validation staff conducts occupational analyses for each examination every 5-7 years with the assistance of industry representatives. Additional meetings with industry

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representatives are scheduled to review and write test questions when necessary (e.g., building code changes). Currently, there are 42 trade examinations, 2 certification examinations, and a business/law examination administered by the Board. Examination performance is monitored on a regular basis using statistical analysis. Examinations are administered daily by computer and results are provided to candidates immediately. Examination candidates who fail to pass are given a breakdown of their results by content area to assist them in preparing to retake the examination.

Number of exams scheduled during 2010/11: 51,423 (does not include June 2011)

Number of exam sites: 8 statewide

h. The Administrative Division provides support and direction enabling staff to carry out the duties and responsibilities of the Board. It includes the mailroom,

cashiering, personnel, file room, and the Board’s Office of Information Services which provides technical support and services for the Board’s computer systems III. Requirements For Licensure:

a. To qualify for a license an individual must have a minimum of four years of journey level experience in the trade applied for and pass an exam consisting of two parts, business/law and trade. (There are some provisions for waiver of the exam.) Applicants for a license must have no construction related judgments or outstanding liabilities; indicate at least $2,500 operating capital; post a

contractor’s bond in the amount of $12,500; show proof of workers’

compensation coverage or submit an exemption statement; complete an asbestos open-book exam; and, complete fingerprint requirements. If the qualifier on a license is designated as a responsible managing employee (RME), or as a

responsible managing officer (RMO) with less than 10 percent ownership, a bond of qualifying individual in the amount of $12,500 must be posted in addition to the contractor’s bond. Applicants for a

C-39 Roofing license must provide proof of workers’ compensation coverage regardless of whether or not they have employees. There are no education requirements for obtaining a contractor’s license nor are there any continuing education requirements for maintaining or renewing a contractor’s license in California

IV. Recent Changes To: a. Assembly Bill 2305

Extended the requirement for C-39 Roofing contractors to carry a workers’ compensation policy, even if he or she has no employees, until 2013. Senate Bill 392

Provides for the issuance of a contractor’s license to a Limited Liability

Corporation (LLC) beginning January 1, 2012. Prior to passage of this law, LLCs were not able to be licensed in California. The LLC will be required to maintain

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liability insurance of between $1,000,000 and $5,000,000 and post a $100,000 surety bond, in addition to the $12,500 bond already required of all licensees. Senate Bill 1254

Requires CSLB to issue a “stop work” order to any licensed or unlicensed ho fails to carry workers’ compensation insurance coverage for all of his or her

employees. The new law gives CSLB unprecedented authority in allowing the Board’s enforcement representatives to more effectively stop unlicensed,

uninsured activity, and aid in the state’s efforts to ensure a level playing field for licensees who follow workers’ compensation laws. A stop order takes effect immediately and can be appealed. Employees who lose pay due to a work stoppage will be entitled to up to 10 days’ pay for time lost. Failure to comply with a stop work order will be a misdemeanor, punishable by up to 60 days in jail and/or a fine of up to $10,000.

Senate Bill 1491

Requires that a citation for acting as a contractor or salesperson without a license or registration be issued within four years, or 18 months of a complaint for the violation, whichever is later. The bill also allows for contractors applying for an original license to complete and return the required open book exam about asbestos electronically.

V. Possible Upcoming Changes To: a. Assembly Bill 397

This bill would require, at the time or renewal, an active contractor licensee with an exemption from workers’ compensation insurance on file with the Contractors’ State License Board to either recertify the licensee’s exemption or to provide a current and valid Certificate of Workers’ Compensation Insurance or Certificate of Self Insurance.

Assembly Bill 878

This bill would require workers’ compensation insurance companies to submit to the Contractors State License Board (CSLB) audit findings that results in the cancellation of a licensee’s workers’ compensation policy.

Assembly Bill 1091

This bill would amend existing Contractors State License Law, authorizing the registrar to accept petitions from licensees disputing matters related to

disassociation. Specifies that the notification be provided within 90 days after

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Colorado Department of Regulatory Agencies Division of Registrations

Mark Browne, Program Director 1560 Broadway, Suite 1500

Denver, CO 80202 P 303.894.2309

www.dora.state.co.us

I. A brief description of who you regulate:

The Electrical and Plumbing programs regulate Plumbing Contractors, Plumbing Apprentices, and Residential/Journeyman/Master Plumbers. The Electrical Board regulates Electrical Contractors, Electrical Apprentices, and

Residential/Journeyman/Master Electricians. Electrical Apprentice total: 9666

Electrical Contractors: 3831 Journeyman Electrician: 10445 Master Electrician: 6341 Residential Wireman: 1027 Electrical total: 31,310 Journeyman Plumber: 2728 Master Plumber: 4047 Plumbing Apprentice: 8069 Plumbing Contractor: 2057 Residential Plumber: 254 Plumbers Total: 17,155 II. Size and Responsibility of Your Agency:

a. Staff and Board Size:

The Electrical Board is comprised of 9 members who are appointed by the Governor. The Plumbing Board is comprised of 7 members who are appointed by the Governor. The Electrical and Plumbing program has an Enforcement Unit Supervisor who reports to the Program Director. The Enforcement Unit Supervisor has a staff of 5 whose responsibility is to create the board packets for the Board members and to work on disciplinary cases as well as help draft rules.

There is also the Chief Inspector who reports to the Program Director. This Chief Inspector has two Electrical Inspector Supervisors under him and one Plumbing

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Inspector Supervisor. Under them there are a total of 29 state electrical field inspectors and 9 state plumbing field inspectors.

b. Number of Offices

The main office is located in downtown Denver which hold the Program Director, Chief Inspectors, Enforcement Unit Supervisor, and the Inspector Supervisors, along with 5 field inspectors. The remaining field inspectors are throughout the state in satellite offices which total 15 satellite offices.

c. Responsible for What Functions vs. What Services Are Provided by Other Departments

As outlined in the Colorado Revised Statutes for Electricians, the Board is responsible for:

Licensing and regulating individual master electricians, journeyman electricians, and residential wireman.

Registering and regulating electrical contractors and apprentice electricians. Overseeing the administration of the electrical licensing examination. Investigating complaints against its licensees.

Conducting disciplinary hearings against licensees who are alleged to have violated the electrical law or the Board's rules and regulations.

Issuing disciplinary actions against licensees who violate the electrical law or the Board's rules and regulations;

Renewing electrical licenses and contractor registrations every two years.

Adopting and revising rules and regulations as may be necessary to carry into effect the provisions of the Electrical Law.

Conducting electrical inspections throughout the state except where any incorporated town, city, county, or city and county performs its own inspections.

Meeting on a regular basis to conduct its business.

Also listed in Electrical Statutes 12-23-104. Board powers and duties

http://www.dora.state.co.us/electrical/Statute.pdf

Board Responsibilities

According to state statute section 12-58-104 the Board is responsible for: Meeting on a regular basis to conduct business

Plumbing inspections throughout the state where the local authorities have requested that service

Adopting and revising rules and regulations as may be necessary to implement the provisions of the Plumbing Law

Licensing and regulating individual master plumbers, journeyman plumbers, and residential plumbers

Registering and regulating plumbing apprentices

Overseeing the administration the plumbing licensing examination Renewing plumbing licenses every two years

Investigating complaints against licensees

Conducting disciplinary hearings and sanctions against licensees who are alleged to have violated the Plumbing Law or the Board's Rules and Regulations

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Also listed in Plumbing Statute 12-58-104. Powers of board – fees – rules.

http://www.dora.state.co.us/plumbing/Statute.pdf

III. Requirements for Licensure: a. Examinations

In order to be licensed an individual must be approved to take an original licensing exam with our third party vendor Pearson VUE. In order to be approved they must show the necessary amount of field/classroom hours listed in both board rules. There is an exam to receive your residential license as well as an individual exam if you want a Journeyman’s or Master’s license.

b. Experience

For Plumbing experience to be approved to take an exam:

The minimum hours of practical experience required for examinations are: 1. Residential 3400

2. Journeyman 6800 3. Master 9780

(Rule 3.0 lists other criteria in detail).

http://www.dora.state.co.us/plumbing/Rules.pdf

For Electrical Experience to be approved to take an exam: Listed in statute 12-23-106. License requirements – rules.

http://www.dora.state.co.us/electrical/Statute.pdf

Also listed in rule 5.0. http://www.dora.state.co.us/electrical/Rules.pdf

c. Financial responsibility (financial statements, bonds, recovery fund, etc.) There is no financial responsibility in order to become a licensee. In order to register as a Electrical or Plumbing Contractor the only criteria is to have a responsible Master, pay the registration fee and have evidence that they comply with the Worker’s Compensation and Unemployment Compensation laws.

http://www.dora.state.co.us/electrical/ec/registration.htm

IV. Recent Changes To:

The Electrical Board recently implemented new Continued Competency Assessment from HB 09-1136 in which a licensee must now take a Continued Competency

Assessment in order to renew their license. Contractors do not have this requirement. Depending on how well they do they might have as many as 24PDU (Professional Development Units) to take until the next CC Assessment is taken at the upcoming renewal cycle. This cycle is every three years following the renewal cycle and adoption of the latest NEC (National Electric Code). These PDUs will be in an area where they showed weak competency. Detailed information of this new requirement can be found at: http://www.dora.state.co.us/electrical/cc/index.htm

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V. Possible Upcoming Changes To: N/A VI. Any Unique Situation or Problem: N/A

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Division of Professions Electrical Contractors’ Licensing Board 1940 North Monroe Street Tallahassee, Florida 32399-0771 Phone: 850.487.8304 • Fax: 850.922.2918

Ken Lawson, Secretary Rick Scott, Governor

LICENSE EFFICIENTLY. REGULATE FAIRLY.

WWW.MYFLORIDALICENSE.COM

Report for the State of Florida

Florida Electrical Contractors Licensing Board

I. Brief Description of Who We Regulate:

Individuals and businesses that are qualified to engage in the business of electrical or alarm system contracting.

a. Classifications or trades.

Certified and registered electrical contractors, alarm system contractors, and specialty electrical contractors.

Certified contractors are authorized to practice statewide. Registered contractors are authorized to practice only in jurisdictions where they hold a valid certificate of competency or competency card that has been registered with the State of Florida Electrical Contractors’ Licensing Board (ECLB).

b. Residential and/or commercial.

The scope of work for each trade depends on the level of classification.

A Certified Electrical Contractor is allowed to contract for any electrical system, including any alarm system and all specialty categories. However, a Registered Electrical Contractor is allowed to contract for electrical systems, including all specialtycategories excluding alarm systems.

An Alarm Systems Contractor I is allowed to contract for any alarm system or low voltage system. An

Alarm System Contractor II is allowed to contract for any alarm system or low voltage system, excluding fire alarm systems. A Registered Residential Alarm System Contractor is allowed to contract for burglar alarm systems in single-family residential, quadruplex housing, and mobile homes of a residential

occupancy class in the jurisdiction where he/she has a local competency card which has been registered with the ECLB.

A Specialty Electrical Contractor is allowed to contract in the specialty category indicated on the license. Specialty categories include Lighting Maintenance Specialty Electrical Contractor, Sign Specialty Electrical Contractor, Residential Electrical Contractor, Limited Energy Systems Specialty Contractor and Utility Line Electrical Contractor.

c. Number of licensees.

11,818 Active and Inactive licenses.

II. Size and Responsibility of Our Agency:

The Department of Business and Professional Regulation, is charged with the responsibility of protecting the health, safety and welfare of the citizens and visitors of the State of Florida and to ensure that professions and businesses provide quality services within the confines of the law.

The Division of Profession within theDepartment of Business and Professional Regulation is responsible for fifteen (15) professional boards, three department-regulated professions, and one council. Within these boards, professions and council, the Division licenses forty-three (43) professions.

a. Staff and board size.

The ECLB consist of eleven (11) members: seven (7) Certified Electrical Contractors, two (2) Certified Alarm System Contractors and two (2) Consumer Members. Board staff includes the Board’s Executive Director, her assistant and a Government Analyst.

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b. Number of offices.

The DBPR is headquartered in Tallahassee, Florida with approximately thirty-two (32) district and regional offices statewide. The ECLB is headquartered in Tallahassee, Florida.

c. Responsible for what functions vs. what services are provided by other departments. The Board office is directly responsible for carrying out the business and

administrative functions of the Board. Application processing and licensure is

handled by the Central Intake Unit/Applications. This group services all applications for examination and licensure for the Division of Professions and Regulation. Electrical examinations and Continuing Education are managed and administered by the Department’s Bureau of Education and Testing. The compliance and enforcement functions are provided by the Division of Professions and Regulation as well.

d. Statistics on complaints, hearings, etc.

From July 2010 until April 2011, the Division of Regulation received 904 complaints that resulted in 474 cases for ECLB. There were also 474 complaints of unlicensed activity.

Applicant must be at least eighteen (18) years of age, be of good moral character and meet the eligibility requirements.

a. Examinations:

Each category of licensure has a dedicated examination, i.e., Unlimited Electrical Contractor, Alarm Systems Contractor I, or Limited Energy Systems Specialty Contractor. The examinations are designed to measure how well a candidate has mastered the fundamentals of electrical contracting and to measure his or her ability to interpret and apply the appropriate sections of the National Electrical Code

(N. E. C.) and other applicable references to practical problems. There are two parts to the examination, a Technical and Safety portion and a Business portion offered regularly as Computer Based Tests by our testing vendor which is currently PearsonVue. All of the questions are one (1) point questions. The grades for each examination will be determined from the total point value of those questions answered correctly. The passing score for each examination is 75 %. The grading process includes a statistical analysis of each question on the examination. Questions found to be statistically deficient are subject to further review. b. Experience:

Examination applicants may qualify by any of several different means as follows:

• Must be licensed as an electrical professional engineer for three (3) years within the last twelve (12) years; or

• Must have three (3) years of management experience in the trade within the last six (6) years immediately preceding the filing of the application; or

 Must have four (4) years of experience as a foreman, supervisor or contractor in the trade within the last eight (8) years immediately preceding the filing of the application; or

• Must have six (6) years of comprehensive training, technical education or broad experience associated with an electrical contracting business within the last twelve (12) years immediately preceding the filing of the application; or

• Must have at least six (6) years of technical experience in electrical work with the Armed Forces or a governmental entity within the last twelve (12) years immediately preceding the filing of the

application; or

• Must have a combination of these qualifications totaling six (6) years of experience. The required experience must include at least 40% of work that is in 3-phase services.

c. Financial responsibility:

Financial responsibility is established through submission of a credit report on the qualifying agent and the business entity from any recognized credit bureau that includes but is not limited to liens, judgments, suits, and bankruptcy obtained from county, state and federal records. The credit report must be dated within twelve (12) months of filing the application. A notarized personal financial statement must be prepared within twelve (12) months of filing the application and must show a total net worth, unless they are submitting an audited or reviewed Certified Public Accountant prepared statement. Applicants must submit

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a notarized letter of financial responsibility, on bank letterhead, and signed by an officer of the bank. Applicants are also required to complete a financial responsibility questionnaire. Documentation of any liens, judgment or suits must include legal release, settlement or adjudication.

d. Continuing Education:

As a condition of renewal active licensees must obtain at least 14 hours of Board approved continuing education. Of the 14 hours, 7 hours must be on technical subjects, 1 hour on workers' compensation, 1 hour on workplace safety, 1 hour on business practices, 2 hours false alarm prevention (for Alarm Contractors and Electrical Contractors who work on Alarms), 1 hour advanced building code module and the other 1-3 hours may be of any subject of your choice from a Board (ECLB) approved provider. Licenses must be renewed on or before August 31 of every even numbered year.

IV. Recent Changes:

a. Legislation. None

V. Upcoming Changes:

a. No significant changes. b. Study commissions or the like. No significant changes.

VI. Unique Situations or Problems:

a. No significant issues.

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CONTRACTORS LICENSE BOARD

STATE OF HAWAII

PROFESSIONAL AND VOCATIONAL LICENSING DIVISION DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

P.O. BOX 3469 HONOLULU, HAWAII 96801 www. hawaii.gov/dcca/pvl KEALI’I S. LOPEZ DIRECTOR CELIA S. SUZUKI LICENSING ADMINISTRATOR NEIL ABERCROMBIE GOVERNOR BRIAN SCHATZ LIEUTENANT GOVERNOR

NASCLA STATE REPORT Hawaii

Verna Oda, Executive Officer

a. Hawaii regulates general engineering contractors, general building contractors, and numerous specialty contractor classifications, such as plumbing, roofing, electrical, masonry, painting, etc. Both residential and commercial contracting is regulated.

b. As of April 13, 2011, the Contractor’s License Board had the following number of active licensees:

Contracting Entities: 6,367

Responsible Managing Employees: 4,491 Total: 10,858

II. Size and Responsibility of Agency:

a. The Contractor’s License Board is attached administratively to the Professional and Vocational Licensing Division of the Department of Commerce & Consumer Affairs. The 13 member board is directly supported by an Executive Officer and a secretary, and indirectly supported by the Licensing Branch, Fiscal Office, the Office of Administrative Hearings, Licensing Administration, the Attorney General’s Office, and the Director’s Office. Complaint intake, investigation and prosecution is the function of the Regulated Industries Complaints Office

(“RICO”).

b. In 2010, RICO received 363 complaints relating to contractors. III. Requirements for Licensure:

a. Applicants for licensure must demonstrate four years of supervisory experience, financial integrity, and financial capacity. Applicants are required to pass a two-part examination. Part I of the examination covers laws such as the contractor’s license law, workers’ compensation laws, labor laws, and also includes

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b. Financial statements and credit reports are reviewed and evaluated to determine financial responsibility and capacity. The Board may impose a bond in the sum of not less than $5,000 after considering an applicant’s financial condition and experience in the field.

c. License fees include a payment of $150 for deposit into the Contractors Recovery Fund at the time of licensure. The Board has the authority to assess additional fees up to $500 if the fund’s balance falls below $250,000.

d. The fund paid out $62,500 to homeowners in fiscal year 2010, and $50,000 so far in fiscal year 2011.

IV. Possible Upcoming Changes:

a. We anticipate the passage of a bill that would allow owner-builders to sell their unfinished structure upon approval by the Board.

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STATE OF IDAHO

BUREAU OF OCCUPATIONAL LICENSES

700 West State Street Boise, Idaho 83720-0063 (208) 334-3233 FAX (208) 334-3945 E-Mail ibol@ibol.idaho.gov Website www.ibol.idaho.gov Report for the Idaho State Contractors Board

a. Idaho regulates all residential and commercial contractors that perform construction work in excess of $2,000 (material and labor). A contractor is defined as a person who in any capacity undertakes, offers to undertake, purports to have the capacity to undertake, or submits a bid to, or does himself or by or through others, perform construction, or a construction manager who performs construction management services.

b. Idaho uses 53 trade classifications for contractor registration. Because Idaho has such a broad definition for a contractor, there are numerous exemptions to clarify who must register listed under Idaho Code Section 52-5205 found at

http://www.legislature.idaho.gov/idstat/Title54/T54CH52.htm. Number of Registrants: 14,944

II. Size and Responsibility of Agency:

a. The Idaho State Contractors Board contracts with the Bureau of Occupational Licenses for administrative, financial, legal, and investigative support. The Board consists of five members – four contractor professionals and one member of the public. The contractor members each represent a different geographic area of the state.

b. Statistics on complaints:

Fiscal Year 2010 (to date)

Total Complaints received 310 (Including 125 insurance files)

Status:

Closed by Board action 159 Closed following disciplinary action 11

Pending Legal Review 81

Remaining under investigation 44 Awaiting Board determination 13

Fiscal Year 2009

Status:

Closed by Board action 91

Closed following disciplinary action 50

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Remaining under investigation 15 Awaiting Board determination 3

Status:

III.Requirements for Licensure:

a. Idaho’s law is a registration, not a licensure law. There are no examination or experience requirements. To be registered, contractors must fill out an application, pay a fee, and provide proof of liability insurance and

workers’ compensation coverage or proof of exemption from workers’ compensation coverage

IV.Recent Changes:

a. There were no changes to the Board’s Laws or Rules in the 2011 Legislature.

V. Possible Upcoming Changes:

a. There are currently no discussions of any suggested changes. Ideas are submitted to the Governor’s Office in August of each year.

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State of Louisiana

STATE LICENSING BOARD FOR CONTRACTORS

Report for the Louisiana State Licensing Board for Contractors

Agency Size:

15 Board Members

5 Residential Committee Members

50 Staff Personnel (Accounting, Administration, Applications, Compliance, Examinations, Human Resources)

Compliance and Enforcement:

18 Commercial and Residential Investigators

2010 Statistics:

Complaints scheduled for administrative hearings – 500 Contractors found guilty and fined - 460

Contractors found not guilty and dismissed - 40 Cases against licensed contractors - 144

Cases against unlicensed contractors - 356 Commercial construction cases - 257

Residential new home construction cases - 85 Residential home improvement cases - 142

Contractors licenses suspended or placed on probation - 13 Contractors licenses revoked - 10

Fines levied - $1.75 million

Website:

www.lslbc.louisiana.gov Regulates by Licensure:

Commercial Contractors’ Projects at $50,000 or more Electrical Contractors’ Projects exceeding $10,000 Mechanical Contractors’ Projects exceeding $10,000 Plumbing Contractors’ Projects exceeding $10,000 Residential Contractors’ Projects exceeding $75,000 Hazardous Materials Projects at $1 or more

Asbestos Abatement and Removal

Lead Based Paint Abatement and Removal Hazardous Waste Treatment and Removal Underground Storage Tanks

Mold Remediation at $1 or more

MICHAEL MCDUFF

EXECUTIVE DIRECTOR

BOBBY JINDAL GOVERNOR

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2525 Quail Drive • Baton Rouge, Louisiana 70808-9042 • (225) 765-2301 • Fax (225) 765-2362

www.lslbc.louisiana.gov

Regulates by Registration:

Home Improvement Contractors’ Projects between $7,500 and $75,000 (Home improvement contracts above $75,000 require full residential licensure)

Classifications Licensed:

Commercial Building Construction Highway, Street and Bridge Construction Heavy Construction

Municipal and Public Works Construction Electrical Work

Mechanical Work Plumbing

Hazardous Materials

Specialty and sub-classifications (e.g. Landscaping, Grading, and Beautification) Residential Construction

Mold Remediation

Louisiana Licensees:

Total Licenses – 21,172

Commercial License Holders – 16,946 Residential License Holders – 3,080 Home Improvement Registrations – 949 Mold Remediators – 197

Requirements for Licensure Fees:

Commercial, Residential, and Mold Licenses:

Basic license fee per classification - $100 for first classification, $95 for each additional Basic renewal fee per classification - $100 for first classification, $95 for each additional

Other fees apply

Home Improvement Registration:

Basic registration - $50

Other fees apply.

Check website for additional fee schedule information atwww.lslbc.louisiana.gov

Commercial Licensing Requirements:

Must complete an application

Must take Business and Law examination Must take the trade examination

Must show a net worth of $10,000

Licenses expire one year from issue date.

Applicants can elect to pay for a one, two, or three year renewal term. Must maintain a current qualifying party for the license

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Residential Licensing Requirements:

Applicants can elect to pay for a one, two, or three year renewal term. Must maintain a current qualifying party for the license

Must maintain a minimum $100,000 General Liability policy Must maintain Workers Compensation Insurance at statutory limits Must complete four hours of continuing education requirements annually

Mold Remediation Licensing Requirements:

Applicants can elect to pay for a one, two, or three year renewal term. Must maintain Workers Compensation Insurance

Must maintain a minimum $50,000 General Liability policy

Must have had a minimum of 24 hours of mold assessment and remediation training Must take four hours of training in unfair trade practices and consumer protection

Home Improvement Contractor Requirements:

Must show proof of Workers Compensation Insurance

Reciprocity Agreements:

Louisiana has reciprocity agreements with:

Alabama Licensing Board for General Contractors Alabama Electrical Contractors Board

Alabama Board of Heating, Air Conditioning & Refrigeration Contractors Alabama Home Builders Licensing Board

Arkansas Contractors Licensing Board

General Contractors Division of the Georgia State Licensing Board for Residential and General Contractors

Kentucky Department of Housing, Buildings and Construction Mississippi Board of Contractors

North Carolina Board of Examiners of Electrical Contractors Ohio Construction Industry Licensing Board

South Carolina Contractor’s Board

Tennessee Board for Licensing General Contractors Texas Department of Licensing and Regulation

Utah Construction Trades Bureau Division of Occupational and Professional Licensing

Contractors must be in good standing with their domiciliary state licensing board and in most cases must have had a license in their state for the past three years.

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Report from the State of Mississippi

State Board of Contractors

June 23, 2011

a. The MSBOC regulates Mississippi’s construction industry. Currently, there are over 12,000 licensed commercial and residential contractors. b. Commercial contractors include the major trades of Building

Construction, Mechanical, Electrical, Municipal, Highways, Heavy Construction and various Specialty classes for all:

i. Public and privately funded construction projects in excess of $50,000; ii. Fire Protection systems on publicly funded projects in excess of $5,000; iii. Fire Protection systems on privately funded projects in excess of $10,000.

c. Residential contractors include:

i. Residential builders who construct new residences in excess of $50,000;

ii. Residential remodelers who perform remodeling in excess of $10,000; iii. Residential roofers who perform jobs in excess of $10,000.

a. The MSBOC is composed of 10 board members who oversee commercial contractors. There is also a 5 member Residential Standing Committee which has exclusive jurisdiction over residential license holders. All board members and residential committee members are appointed by the Governor. In addition to the board members and RSC, the agency is

comprised of 10 staff members and 7 investigators.

b. The offices of the MSBOC are located at 2679 Crane Ridge Drive, Suite C, Jackson, MS 39216.

c. The MSBOC received over 200 complaints against contractors in 2010. Hearings regarding potential violations by contractors are heard at the Board’s quarterly meetings.

a. Examinations are required and are administered by PSI.

b. A reviewed financial statement, which indicates a net worth of at least $20,000 for a specialty classification and $50,000 for a major

classification is required for all commercial applicants. In addition, a

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commercial applicant must provide a certificate of insurance evidencing current minimum coverage of $300,000 per occurrence and $600,000 aggregate for general liability purposes and a certificate of insurance evidencing current workers’ compensation coverage (if applicable). Commercial applicants must also provide a certificate of good standing with the Mississippi Secretary of State’s office and a tax identification number.

c. Residential applicants must provide proof of workers’ compensation insurance (if applicable), a tax identification number, and passing test scores.

IV. Recent Changes:

a. Prior to July 1, 2010 all residential applications had to be on file with the Board for at least 30 days and commercial certificates of responsibility could only be issued during quarterly business meetings. After July 1, 2010, licenses and certificates of responsibility can be issued at any time during the year once the application is completed and all required documentation has been received. In addition, the threshold requiring a commercial license was lowered from $100,000 to $50,000 on privately funded projects.

V. Any Unique Situation or Problem: a. Classification Definitions

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State Of Nevada

STATE

CONTRACTORS

BOARD

Reply To: Southern Nevada

2310 Corporate Circle, Suite 200 Henderson, Nevada 89074 (702) 486-1100 Fax (702) 486-1190 Investigations: (702) 486-1110 www.nscb.state.nv.us Northern Nevada

9670 Gateway Drive, Suite 100 Reno, Nevada 89521 (775) 688-1141 Fax (775) 688-1271 Investigations: (775) 688-1150 BRIAN SANDOVAL Governor MEMBERS Kevin E. Burke, Chairman

Thomas “Jim” Alexander Donald L. Drake Nathaniel W. Hodgson, III

William “Bruce” King Stephen P. Quinn

Guy M. Wells

NEVADA STATE CONTRACTORS BOARD 2011 REPORT

I. A Brief Description of Who is Regulated by the Board:

a. The Nevada State Contractors Board (“Board”) regulates all aspects of residential and commercial contracting and licenses general engineering, general building and specialty contractors.

b. As of July 1, 2011, Nevada has 15,907 active licensed contractors and 1,628 inactive contractors.

II. Size and Responsibility of the Board:

a. The Board is comprised of seven (7) members appointed by the Governor for staggered terms of three (3) years. Six (6) members must be licensed contractors with at least five (5) years experience as an active contractor. One (1) non-contractor member represents the general public. One member serves as Chairman.

b. The Board acts in a judicial capacity in deciding contested cases. Board members serve as Disciplinary Hearing Officers on a rotational basis. The Board meets monthly to act on licensing and administrative matters. Disciplinary Hearings are conducted twice each month.

c. The Executive Officer is appointed by the Board and is responsible for the coordination of all programs and activities of the agency. The Board provides policy direction.

d. In order to accomplish its legislative directives, the Board is structured into three primary divisions in two regional offices. The divisions are Licensing; Investigations and Enforcement; and Operations. Fifty-nine (59) full-time employees staff the Board’s two regional offices.

e. The Board is funded by contractor paid fees. No funding is obtained from the State of Nevada.

• Licensing Division processes applications for licensure, license modifications and license renewals; financial reviews as well as maintaining license information concerning qualified employees, corporate officers and directors; and ensuring compliance with bond requirements.

• Operations Division consists of the Legal Department, Public Relations, Customer Service, Governmental Affairs, Finance, Human Resources, Recovery Fund, Information Systems and related functions.

• Investigations Division consists of Compliance Investigators and Criminal Investigators: ○ Compliance Investigators conduct post-licensure investigations of licensees regarding reported violations of the contracting law, substandard workmanship violations, money owing complaints and assist in resolving consumer and contractor disputes

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○ Criminal Investigators conduct investigations of unlicensed contracting activity and construction fraud, pre-licensing background investigations, and post-licensing criminal investigations. Criminal investigators have access to law enforcement telecommunications and data base records when conducting criminal investigations.

f. Board staff processed 1,437 new applications for licensure and 3,513 applications for license changes during the period July 1, 2010 through June 30, 2011. The Board issued 1,103 new licenses and conducted 239 application denial and financial responsibility hearings.

g. Disciplinary hearings numbered 193 and involved 268 licensees, resulting in 145 revoked licenses, 22 suspended licenses, 4 voluntary surrendered licenses, 3 licenses placed on probation and 21 corrective orders issued. Disciplinary fines totaling $254,200, and investigative costs in the amount of $250,251 were assessed during the fiscal year ending June 30, 2011. In addition, 150 Administrative Citations were issued resulting in fines of $154,400 and $61,581 in investigative costs. Board staff investigated 2,204 complaints against licensees and 1,346 complaints against unlicensed contractors. Investigators filed 816 criminal complaints against licensees and unlicensed contractors and received 331 criminal convictions.

III. Requirements for Licensure:

a. Applicants are required to have four (4) years of verified experience in their respective trade, which must be supported by signed affidavits, a minimum of four (4) years experience as a journeyman, foreman, supervising employee, or contractor in the specific trade requested, and successful completion of the management and trade examinations. Credit checks, fingerprints and background checks are required for all applicants. Applicants are required to demonstrate a level of experience, knowledge and financial responsibility. Licensees are required to submit a financial statement at the time of licensure and any other time requested by the Board. Monetary limits and bonding requirements are established by the Board.

b. Nevada established a Residential Recovery Fund for homeowners damaged as a result of an act or omission by a properly licensed residential contractor. The fund is financed through annual assessments paid by residential contractors and is available to owner occupants of single-family residences. Payment from the fund is not available to the owners of condominiums, townhomes, duplexes, rental properties or owners of investment properties. The amount of the recovery is limited to $35,000.00 per homeowner with a maximum of $400,000.00 payable from the fund against a single contractor. Three Board members are designated as the Residential Recovery Fund Committee and meet bi-monthly to review claims. During the 2010-2011 fiscal year the Board authorized $489,675 in payments to 66 homeowners, with an average award of $7,419.

c. In addition, the Board oversees a Commission on Construction Education that was created to increase the quality and availability of education programs for the construction industry. The account is funded from fines assessed through disciplinary proceedings and collected by the State Contractors Board and voluntary contributions.

IV. Recent Changes to Legislation, Rules & Regulations or Responsibilities:

a. The Nevada Legislature enacted several changes to the laws governing contractors. The Board requested changes to the process for a contractor to increase the monetary license limit prior to submitting a bid on a single limit. The law now requires a contractor to submit the request for an increase five (5) working days prior to the bid and obtain approval of the request prior to submitting a bid on the project. The Board also requested legislation that subsequently was approved that enhances existing law concerning disciplinary measures for licensees who fail to comply with an order of the Board and notification to the Board of any plea in certain criminal cases.

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b. Other changes enacted by the 2011 session of the legislature include changes relating to bidder preferences on state and local public works projects; changes governing violations concerning unlicensed activity; and a bill that requires the Board to establish an advisory committee to recommend appropriate classifications for the installation and maintenance of building shell insulation or thermal system insulation.