Arizona ROC rule eases contractor licensing standards

Applying for an Arizona contractor’s license has historically required passing two examinations and verifying your experience. A 2019 Arizona Registrar of Contractors (ROC) rule changes – for the better - the examination and experience requirements for a new contractor’s license.

The new rule is largely favorable to contractors, with no detriment to the public, continuing a recent trend in which the Registrar has simplified the license application process, removed the dual-license requirement, enhanced the fairness of ROC hearings, and removed the “project form” requirement from the application.

Here are the rule’s highlights regarding examination and experience requirements.

WAIVING THE EXPERIENCE REQUIREMENT

The Registrar predicts that the rule will increase the percentage of successful applicants by reducing, eliminating and clarifying experience requirements. The Registrar is now able to waive experience requirements and instead accept either (a) the applicant’s passing of an appropriate trade examination (not more than two years prior to application for consideration of waiver of experience) or (b) a nationally recognized certification, valid at the time of application to be considered for waiver of experience.

The new rule also eases the experience requirement. When the Registrar reviews experience, it must recognize experience that a person gained even while working without a license or for an unlicensed entity. The rule also requires the Registrar to recognize experience acquired when a person was younger than age 18.

Minimum trade experience required for licensing includes (a) military service or training; (b) diplomas or transcripts from accredited training programs; and (c) completion certificates from an apprenticeship approved by the U.S. Department of Labor or a state apprenticeship agency.

THE REASON BEHIND THE RULE

In support of the rule change, the Registrar cites a 2017 Institute of Justice report, “License to Work: A National Study of Burdens from Occupational Licensing” (2nd edition).

The report identifies Arizona as the nation’s fourth “most broadly and onerously licensed state.” Although the report considers all Arizona occupational licenses (contractors, cosmetologists, opticians, etc.), it specifically identifies contractor licenses as part of the burden, stating “Arizona should reduce or repeal its onerous licenses for contractors and other occupations.”

The Registrar also cites its own comprehensive 2017 study of each license classification, which found no correlation between (a) the experience and examination requirements and (b) the percentage of licensees with a complaint. The Registrar’s conclusion: Requiring more experience and examinations from a licensee does not necessarily lower that licensee’s likelihood of receiving a complaint.

ONLY NEW LICENSES AFFECTED

The new rule does not directly affect anyone currently holding a contractor’s license. Licensed contractors do not need to take a new examination or obtain certification to remain licensed or renew a license.

The new rule affects only those who are interested in obtaining a contractor’s license from the Registrar, either their first license or a license for a new trade. If, forexample, you are a licensed landscape contractor who wants to be able to install pools, the new rule would affect only your application for a B-5 General Swimming Pool Contractor license.

MORE INFORMATION. You can read the new rule in the March 31, 2019, issue of the Arizona Administrative Register.