Change is inevitable but does it have to come right in the middle of summer? The Arizona Registrar of Contractors' (AROC) rule changes become effective in two months. AROC warns that these changes will effect "nearly all applicants and licensees." The new rules are expected to, among other things, change the classification of nearly 25% of the existing AROC licensees and to increase the bond amounts for all license classifications.

AROC has broken down the changes as follows:

License Classifications

  • Changes to the letter designation for specialty contractor classifications: (A) "C" to "R" (see R4-9-103), (B) "L" to "C" (see R4-9-102), (C) "K" to "CR" (see R4-9-104); "C" indicates commercial, "R" indicates residential, and "CR" indicates commercial and residential
  • Six digit license numbers will be changed, e.g., license C-123456 will be changed to license number R-123456
  • License with dollar maximums have higher dollar limitations: (A) B-2 General Small Commercial Contractor increases from $250,000 to $750,000, (B) C-61 (now CR-61) Limited Remodeling and Repair Contractor increases from $25,000 to $50,000, (C) C-62 Minor Home Improvements increases from $2,500 to $5,000
  • Roughly 25% of existing licensees will be impacted. Arizona has 238 license classifications. Arizona is reducing this number 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). License classifications that will be affected by reclassification will be those 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 licensees already have taken the same exam for the commercial, residential and dual license classifications. If, however, the reclassification would cause a change in exam, the licensee is "grandfathered in" and will not be required to take a new exam
  • License reclassifications will occur automatically. Where the reclassifications cause a change in license fee, the different fee amount is not required until the next license renewal
  • 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 to a CR-1. In these situations, the licensee would save money in the future by cancelling one of the licenses

Fees For New Licenses

  • All new licenses fees will be reduced (see R4-9-130)
  • Fee amounts will show the application and license fees separately

Fees For Renewal Licenses

  • Renewal fees are located in R4-9-130
  • For the nearly 75% of licensees not impacted by the reclassifications, the changes will : (A) decrease fees for specialty commercial ($10), general dual ($410) and specialty dual ($380) classifications; and (B) result in no change of fees for general commercial, general residential and specialty residential classifications

Bond Amounts

  • Increases nearly all bond amounts (see R4-9-112)
  • Bond amount changes do not become enforceable until the next license renewal after June 30, 2014. For example, a June 2014 license renewal will not need to include an updated bond amount until the next renewal period in June 2016;however, a July 2014 license renewal will need to include an updated bond with the renewal

Applications For New Licenses Submitted On Or After July 1, 2014

  • New license applications are to use the new license classifications, fees and bonds
  • License applicant must have taken the correct trade exam

Other Key Clarifications

  • Rewords license scopes to address common confusion in scopes of work (see R4-9-102, R4-9-103, R4-9-104)
  • Confirms Registrar may waive a trade exam where the qualifying party has been the qualifying party within the preceding 5 years for a license in good standing in the same classification in Arizona, or a classification the Registrar deems comparable in another state (see R4-9-106)
  • Updates the rule on "workmanship standards" to use gender-neutral language and clarify the meaning of "professional industry standards" (see R4-9-108)
  • Adds a rule describing communication with the AROC that is unauthorized to avoid the possibility of prejudice in proceedings before the AROC (see R4-9-121)

Additional Source: Arizona Registrar of Contractors