Virginia Contractor Regulations open for Public Comment

The Virginia Board for Contractors has opened public comment on two regulatory actions.

General Regulatory Reduction Initiative

Details: Proposes amendments to the Board for Contractor Regulations (18VAC50-22) to update and clarify rules, align with current agency practices and Virginia law, and remove unnecessary requirements. Key changes include revisions to license classifications and specialty definitions, fee structures, license reinstatement processes, residential contract requirements, and standards for pre-license education courses and providers.

Summary of Key Changes

1. Requires all residential service contractors to obtain a signed acknowledgment from consumers, confirming they have received and reviewed the Department of Professional and Occupational Regulation’s statement of protection. Currently, this requirement is limited to door-to-door solicitations.
2. Allows contractors with the framing specialty to act as the prime contractor, rather than having to be a subcontractor to a prime contractor
3. Expands the scope of certain license classes or specialty designations to allow:
   1. Home Improvement Contractors to perform landscape service contracting.
   2. Residential Building Contractors to perform farm improvement contracting.
   3. Water Well/Pump Contractors to perform environmental monitoring well contracting.
   4. Commercial Improvement Contractors to perform landscape service contracting.
4. Reduce the length for a pre-license education course from six to eight hours
5. Administrative Changes: Remove the requirement for training providers to display certificates on-site and extend the reporting period for changes in qualified individuals from 45 to 60 days.

Public Comment Period: October 21, 2024 to December 20, 2024

Additional Information:

• Regulatory Action Overview
• Agency Background Document
• Proposed Text of Amended Regulation

Class C and Class B Licensure Requirements

Details: Proposes amendments to the Board for Contractor Regulations (18VAC50-22) to revise the eligibility requirements for Class C contractor license applicants; financial disclosure requirements for Class C and Class B contractor license applicants; and changes to ensure consistency with state law.

Summary of Key Changes:

• Reduces Work Experience Requirement: Class C contractor license applicants must currently demonstrate two years of work experience in every classification or specialty in which they seek licensure. This requirement would be reduced to one year.
• Modifies Financial Disclosure Requirements: Applicants for all classes of licensure must currently submit information on any outstanding, past-due debts and judgments; outstanding tax obligations; defaults on bonds; or pending or past bankruptcies for five years prior to application. This requirement would be reduced to three years for Class C applicants and four years for Class B applicants; it would remain at five years for Class A applicants.
• Financial Responsibility Requirements: Current regulations require Class A and Class B license applicants to demonstrate a net worth our equity of $45,000 (Class A) or $15,000 (Class B).  Virginia Code §§ 54.1-1106 and 54.1-1108 specifies (i) the acceptable documentation to demonstrate minimum net worth, and (ii) an option to demonstrate financial responsibility by maintaining a $50,000 bond.  This regulatory action proposes incorporating these statutory provisions directly into the regulation.

Public Comment Period: October 21, 2024 to December 20, 2024

Additional Information:

• Regulatory Action Overview
• Agency Background Document
• Proposed Text of Amended Regulation