No. 27942 (Amendment): R156-55a. Utah Construction Trades Licensing Act Rules

DAR File No.: 27942
Filed: 05/31/2005, 11:48
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Division is proposing amendments to the rule to implement Subsection 58-55-501(21) of the Utah Construction Trades Licensing Act. The statute, which becomes effective on July 1, 2005, establishes a six hour (three core hours and three additional hours) continuing education requirement for licensed contractors in the construction trades every two years. The first two-year period for the required continuing education hours will run from July 1, 2005, until June 30, 2007. It should be noted that Subsection 58-55-501(21) presently indicates that the continuing education requirement will be repealed effective July 1, 2010. However, the repeal date may change in subsequent legislative sessions.

 

Summary of the rule or change:

The proposed amendments add Sections R156-55a-303a and R156-55a-303b. Section R156-55a-303a adds information regarding renewal cycle and procedures. Section R156-55a-303b adds information regarding continuing education standards of what type of courses will meet the criteria for the three hours of core courses and the additional three hours.

 

State statutory or constitutional authorization for this rule:

Section 58-55-101, and Subsections 58-1-106(1)(a), 58-1-202(1)(a), 58-55-308(1), 58-55-102(35) and 58-55-501(21)

 

Anticipated cost or savings to:

the state budget:

The Division will incur minimal costs, approximately $100, to reprint the rule once the proposed amendments are made effective. Any costs incurred will be absorbed in the Division's current budget. The auditing and enforcement of the continuing education requirement will be done with existing Division personnel and that aspect should have no direct impact on the state budget. However, there may be a positive fiscal impact to the state budget through an undetermined amount of money collected through fines that may be assessed for failure to comply with continuing education requirements.

 

local governments:

Proposed amendments do not apply to local governments as local governments are not licensed as contractors. The Division does not anticipate local governments would pay for any costs associated with these proposed amendments as it is solely the responsibility of the licensed contractor to obtain the required continuing education.

 

other persons:

Presently there are approximately 19,000 contractors who are licensed in Utah. The Division estimates that in order to complete the six hours of required continuing education as required by the statute, it will cost each licensee approximately $100 every 2 years for an aggregate cost to the licensed contractors of $1,900,000 every 2 years. It should be noted that the cost indicated above to obtain the required six hours of continuing education is an estimate and the amount may be higher or lower depending on the type of courses attended. Based on the Division's experience with continuing education for other professions and occupations, some continuing education courses may be free and others may cost up to $300 or more. In addition to the costs to obtain the required hours every two years, if a licensed contractor does not comply with the required continuing education hours, the statute provides that a fine may be imposed through the issuance of an administrative citation. As of yet, the Construction Services Commission has not determined the amount of the fine that could be imposed if a licensed contractor failed to comply with the continuing education requirement. Also, the Division and the Construction Services Commission is not able to determine how many licensed contractors would not comply with the continuing education requirement and would therefore be potential violators.

 

Compliance costs for affected persons:

Presently there are approximately 19,000 contractors who are licensed in Utah. The Division estimates that in order to complete the six hours of required continuing education as required by the statute, it will cost each licensee approximately $100 every two years. It should be noted that the cost indicated above to obtain the required six hours of continuing education is an estimate and the amount may be higher or lower depending on the type of courses attended. Based on the Division's experience with continuing education for other professions and occupations, some continuing education courses may be free and others may cost up to $300 or more. In addition to the costs to obtain the required hours every two years, if a licensed contractor does not comply with the required continuing education hours, the statute provides that a fine may be imposed through the issuance of an administrative citation. As of yet, the Construction Services Commission has not determined the amount of the fine that could be imposed if a licensed contractor failed to comply with the continuing education requirement. Also, the Division and the Construction Services Commission is not able to determine how many licensed contractors would not comply with the continuing education requirement and would therefore be potential violators.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule amendment adopts standards for continuing education of contractors as required by statute. It is estimated that the continuing education courses will cost each licensee approximately $50 per year and there are currently an estimated 19,000 licensed contractors. In addition, the Division is authorized by statute to issue citations/fines against contractors who fail to meet the continuing education requirement. However, the amount of the fiscal impact is difficult to determine and depends upon the number of contractors who fail to meet the requirement. No other fiscal impact to businesses is foreseen at this time. Russell C. Skousen, Executive Director

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Occupational and Professional Licensing
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

 

Direct questions regarding this rule to:

Dennis Meservy at the above address, by phone at 801-530-6375, by FAX at 801-530-6511, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/15/2005

 

Interested persons may attend a public hearing regarding this rule:

6/29/2005 at 9:00 AM, 160 East 300 South - Conference Room 4A (4th floor) - Salt Lake City, Utah

 

This rule may become effective on:

07/16/2005

 

Authorized by:

J. Craig Jackson, Director

 

 

RULE TEXT

R156. Commerce, Occupational and Professional Licensing.

R156-55a. Utah Construction Trades Licensing Act Rules.

R156-55a-303a. Renewal Cycle - Procedures.

(1) In accordance with Subsection 58-1-308(1), the renewal date for the two year renewal cycle applicable to licensees under Title 58, Chapter 55 is established by rule in Section R156-1-308.

(2) Renewal procedures shall be in accordance with Section R156-1-308.

(3) In accordance with Subsections 58-55-501(21) and 58-1-308(3)(b)(i), there is established a continuing education requirement for license renewal. Each licensee, or the licensee's qualifier, or an officer, director or supervising individual, as designated by the licensee, shall comply with the following continuing education requirements:

(a) complete three hours of core continuing education; and

(b) an additional three hours of continuing education.

 

R156-55a-303b. Continuing Education - Standards.

(1) Continuing education courses are not required to be submitted for approval by the Commission, but must meet the following criteria:

(a) content must be relevant to the practice of the construction trades and consistent with the laws and rules of this state;

(b) learning objectives must be reasonably and clearly stated;

(c) teaching methods must be clearly stated and appropriate;

(d) faculty must be qualified, both in experience and in teaching expertise;

(e) documentation of attendance must be provided; and

(f) all core education and professional education hours shall be clock hours.

(2) The three hour core education requirement shall include one or more of the following course content areas:

(a) construction codes;

(b) construction laws and rules; and

(c) construction practices.

(3) Credit for core education and professional education shall be recognized in accordance with the following. Hours shall be recognized for core education and professional education completed in blocks of time of not less than 50 minutes, in formally established classroom courses, seminars, lectures, conferences, training sessions or distance learning modules, which meet the criteria listed in Subsection (1) above and conducted by or under the sponsorship of:

(a) a recognized university or college;

(b) a state agency;

(c) a professional association, including:

(i) the Associated Builders and Contractors Association;

(ii) the Associated General Contractors Association;

(iii) the Utah Home Builders Association;

(iv) the Utah Mechanical Contractors Association; or

(d) other recognized education programs as approved by the Commission with the concurrence of the Director.

(4) Professional education shall not include courses in office and business skills, physical well-being and personal development, and meetings held in conjunction with the general business of the licensee.

(5) The continuing education requirement for electricians as established in Section R156-55b-304, which is completed by an electrical contractor, shall satisfy the continuing education requirement for contractors as established in Subsection 58-55-501(21) and implemented herein.

(6) A licensee shall be responsible for maintaining competent records of completed core and other continuing education for a period of two years after the two year period to which the records pertain.

 

KEY: contractors, occupational licensing, licensing

[June 3, 2003]2005

Notice of Continuation January 15, 2002

58-1-106(1)(a)

58-1-202(1)(a)

58-55-101

58-55-308(1)

58-55-102(35)

58-55-501(21)