No. 43542 (Amendment): Rule R156-55e. Elevator Mechanics Licensing Rule

(Amendment)

DAR File No.: 43542
Filed: 02/26/2019 09:43:11 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Summary of the rule or change:

In Sections R156-55e-102, R156-55e-302a, and R156-55e-302b, these proposed nonsubstantive changes update citations and make minor typographical corrections. In Section R156-55e-302c, this proposed amendment extends the expiration date of a temporary elevator mechanic license from 90 days to 180 days, to allow a temporary mechanic to perform the work of erecting, constructing, installing, altering, servicing, maintaining, or repairing an elevator during times when there is a shortage of licensed elevator mechanics. This section also provides an extension date for a renewal of the temporary mechanics license from 90 days to 180 days making it possible to be licensed for up to one year as a temporary elevator mechanic.

Statutory or constitutional authorization for this rule:

Subsection 58-1-106(1)(a)
Subsection 58-1-202(1)(a)
Section 58-55-101
Subsection 58-55-308(1)(a)
Subsection 58-55-302(3)(m)

Anticipated cost or savings to:

the state budget:

The proposed amendment to Section R156-55e-302c will have a minimal fiscal impact to the state. There will be approximately 10 temporary elevator mechanic applications processed in the first fiscal year by the Division of Occupational and Professional Licensing (Division), with approximately 5 per subsequent fiscal years. This will result in a cost of approximately $300 in FY20 for 5 hours of license application processing time at $30/hour and approximately $150 for FY21 and all subsequent fiscal years. There will also be a minimal cost to the Division of approximately $75 to print and distribute this rule once these proposed amendments are made effective. Costs will be offset by the Division charging a fee of $50 per application resulting in approximately $500 in FY20 and approximately $250 for FY21 and all subsequent fiscal years. These proposed amendments may also result in indirect fiscal and non-fiscal benefits to state entities that hire elevator contractors for elevator work, as they may experience cost saving impacts from having additional licensees available to perform the work. However, the exact indirect impacts cannot be estimated because any benefits experienced will vary widely depending on agency requirements.

local governments:

The proposed amendment to Section R156-55e-302c is not expected to directly impact local governments' revenues or expenditures because the amendment only extend the expiration date of the temporary mechanic license, and local governments neither enforce nor are affected by these time frames and application processes. These proposed amendments may also result in indirect fiscal and non-fiscal benefits to local government entities that hire elevator contractors for elevator work, as they may experience cost saving impacts from having additional licensees available to perform the work. However, the exact indirect impacts cannot be estimated because any benefits experienced will vary widely depending on local government requirements.

small businesses:

The proposed amendment to Section R156-55e-302c is expected to cause small businesses who hire elevator contractors for elevator work within their commercial construction projects (NAICS 236220) to experience cost saving impacts on their business projects by having additional licensees available to perform the work. The Division estimates that this could result in a fiscal benefit for approximately 400 small business commercial contractors throughout the industry. The full fiscal impact on these small businesses cannot be estimated because the benefits that they may experience from increased workforce employment will vary widely depending on the requirements of the businesses and the individual characteristics of each employed licensee.

persons other than small businesses, businesses, or local governmental entities:

The proposed amendment to Section R156-55e-302c is expected to create a fiscal benefit for individuals who will be able to obtain a temporary elevator mechanic license as they work toward the experience requirement for full licensure as an elevator mechanic. This will include elevator technicians who have a minimum of 3,550 hours of experience, but less than the 6,000 hours of experience required to apply for full licensure. This proposed amendment will also create a fiscal benefit for individuals who are able to obtain employment as a licensed temporary elevator mechanic and earn wages approximately $9/hour higher than a laborer's wages in the same profession. The elevator industry estimates that there will be approximately 10 to 12 active temporary elevator mechanic's licensees at any given time. The full benefits these other persons will experience from increased employment opportunities are inestimable as the beneficial impact will vary widely depending on the requirements of their employers and the individual characteristics of each licensee.

Compliance costs for affected persons:

These proposed amendments are not expected to impose compliance costs upon any affected persons because it only extends the expiration date of the temporary elevator mechanic license.

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

These amendments will extend the expiration date for a temporary elevator mechanic license to allow temporary mechanics to perform the work of erecting, constructing, installing, altering, servicing, maintaining, or repairing elevators during peak construction times when there is a shortage of licensed elevator mechanics. These amendments are recommended by the Construction Services Commission in collaboration with representatives from the elevator industry. In Sections R156-55e-102, R156-55e-302a, and R156-55e-302b, these proposed nonsubstantive changes update citations and make minor typographical corrections. In Section R156-55e-302c, these proposed amendments extend the expiration date of a temporary elevator mechanic license from 90 days to 180 days, to allow a temporary mechanic to perform the work of erecting, constructing, installing, altering, servicing, maintaining, or repairing an elevator during times when there is a shortage of licensed elevator mechanics. This section also provides an extension date for a renewal of the temporary mechanics license from 90 days to 180 days making it possible to be licensed for up to one year as a temporary elevator mechanic. Small Businesses: These proposed amendments to Section R156-55e-302c are expected to cause small businesses who hire elevator contractors for elevator work within their commercial construction projects (NAICS 236220) to experience cost saving impacts on their business projects by having additional licensees available to perform the work. The Division estimates that this could result in a fiscal benefit for approximately 400 small business commercial contractors throughout the industry. The full fiscal impact on these small businesses cannot be estimated because the benefits that they may experience from increased workforce employment will vary widely depending on the requirements of the businesses and the individual characteristics of each employed licensee. Non-small Businesses: These proposed amendments to Section R156-55e-302c will impact any non-small businesses such as elevator contractors or installers (NAICS 238211) who may seek to employ temporary elevator mechanics to increase their workforce. Based upon input from the elevator industry, the Division estimates that there are approximately 11 non-small businesses who may seek to employ temporary elevator mechanics while there is a shortage of licensed elevator mechanics during construction peaks. These amendments may impact non-small businesses revenues or expenditures based upon hiring practices. Additionally, non-small businesses who hire elevator contractors for elevator erecting, constructing, installing, altering, servicing, maintaining, or repairing within their commercial construction projects (NAICS 236220) may experience cost saving impacts with additional licensees available to perform the work. The Division estimates that this may apply to the approximately 150 non-small business commercial contractors throughout the industry. The full fiscal and non-fiscal benefits for these non-small businesses cannot be estimated because the impacts that non-small businesses may experience from increased workforce employment will vary widely depending on the requirements of the non-small businesses and the individual characteristics of each licensed employee.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office 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:

Robyn Barkdull at the above address, by phone at 801-530-6727, by FAX at 801-530-6511, or by Internet E-mail at rbarkdull@utah.gov

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:

04/15/2019

Interested persons may attend a public hearing regarding this rule:

03/27/2019 09:00 AM, Heber Wells Bldg, 160 E 300 S, Conference Room 474 (fourth floor), Salt Lake City, UT

This rule may become effective on:

04/22/2019

Authorized by:

Mark Steinagel, Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$375

$150

Local Government

Small Businesses

Non-Small Businesses

Other Person

Total Fiscal Costs:

$350

$150

Fiscal Benefits

State Government

$500

$250

Local Government

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Benefits:

$500

$250

Net Fiscal Benefits:

$125

$100

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non-Small Businesses are described below.

Appendix 2: Regulatory Impact to Non-Small Businesses (50 or more employees)

The proposed amendment to R156-55e-302c will impact any non-small businesses such as elevator contractors or installers (NAICS 238211) who may seek to employ temporary elevator mechanics to increase their workforce. Based upon input from the elevator industry, the Division estimates that there are approximately 11 non-small businesses who may seek to employ temporary elevator mechanics while there is a shortage of licensed elevator mechanics during construction peaks. This amendment may impact non-small business revenues or expenditures, based upon hiring practice. Additionally, non-small businesses who hire elevator contractors for elevator erecting, constructing, installing, altering, servicing, maintaining, or repairing within their commercial construction projects (NAICS 236220) may experience cost saving impacts with additional licensees available to perform the work. The Division estimates that this may apply to the approximately 150 non-small business commercial contractors throughout the industry. The full fiscal and non-fiscal benefits for these non-small businesses cannot be estimated because the impacts that non-small businesses may experience from increased workforce employment will vary widely depending on the requirements of the non-small businesses and the individual characteristics of each licensed employee.

The Executive Director of the Department of Commerce, Francine A. Giani, has reviewed and approved this fiscal analysis.

R156. Commerce, Occupational and Professional Licensing.

R156-55e. Elevator Mechanics Licensing Rule.

R156-55e-102. Definitions.

In addition to the definitions in Title 58, Chapters 1 and 55, as used in Title 58, Chapters 1 and 55, or this rule:

(1) "Employee", as used in Subsection 58-55-102([17]18) and this rule, means an individual providing labor services for compensation who has federal and state taxes withheld and worker's compensation and unemployment insurance provided by the individual's employer.

(2) "Immediate supervision", as used in Subsection 58-55-102([16]26) and this rule, means reasonable direction, oversight, inspection, and evaluation of the work of a person, in or out of the immediate presence of the supervising person, so as to ensure that the end result complies with the applicable standards.

(3) "Unprofessional conduct", as defined in Title 58, Chapters 1 and 55, is further defined, in accordance with Subsection 58-1-203(1), in Section R156-55e-502.

R156-55e-302a. Qualifications for Licensure - Experience and Education Requirements.

In accordance with Subsections 58-1-203(1)(b) and 58-1-301(3), the experience requirements in Subsections 58-55-302(1)(e)[~~(v)~~](iv)(C) and 58-55-302(3)(m)(i)(A) and (C) are further clarified and established below.

(1)(a) The required three years of experience and education shall mean 6,000 hours of training.

(b) An applicant may earn no more than 2,000 hours of training in any 12-month period.

(d) The required training shall be obtained as an employee working:

(i) under the immediate supervision of a licensed elevator contractor where licensure is required; or

(ii) under an employer meeting similar qualifications as those of a licensed elevator contractor where licensure is not required.

(e) No credit shall be given for training obtained illegally.

(2) The requirements of Subsection (1) may be met by completing a program resulting in the award of a certification from:

(a) the Canadian Elevator Industry Education Program;

(b) the National Association of Elevator Contractors Certified Elevator Technician Education Program;

(d) any other program that meets the requirements of Subsection 58-55-302(3)(m)(i)(C) as determined by the Commission with the concurrence of the Division Director.

R156-55e-302b. Qualifications for Licensure - Examination Requirements.

(1) In accordance with Subsection 58-55-302(3)(m)(i)(B), an applicant for licensure as an elevator mechanic[al] shall:

(a) pass the Utah Elevator Examination with a score of not less than 75%; or

(b) complete one of the following certification programs:

(i) the Canadian Elevator Industry Education Program;

(ii) the National Association of Elevator Contractors Certified Elevator Technician Education Program;

(iii) the National Elevator Industry Education Program; or

(iv) any other program that meets the requirements of Subsection 58-55-302(3)(m)(i)(C) as determined by the Commission with the concurrence of the Division Director.

(2) An applicant for licensure who fails the Utah Elevator Examination may retake the failed examination as follows:

(a) no earlier than 30 days following any failure, up to three failures; and

(b) no earlier than six months following any failure thereafter.

R156-55e-302c. Qualifications for Licensure - Temporary License Requirements.

(1) The Division may issue a temporary license when:

(a) a licensed elevator contractor notifies the Division that the contractor cannot find a licensed elevator mechanic to perform the work of erecting, constructing, installing, altering, servicing, repairing, or maintaining an elevator, which is confirmed by the Division;

(b) the contractor requests the Division to issue a temporary elevator mechanic license to an individual;

(d) the contractor certifies that the individual has completed 3,550 hours of training that meets the requirements of Section R156-55e-302a.

(2) The expiration date of the temporary license shall be the expected duration of the shortage of licensed elevator mechanics, but shall not exceed [90]180 days.

(3) A temporary license may be renewed if a shortage of elevator mechanics is ongoing on the expiration date of the license, but shall not exceed [90]180 days.

KEY: elevator mechanics, licensing

Date of Enactment or Last Substantive Amendment: [~~November 8, 2010~~]2019

Notice of Continuation: September 14, 2015

Authorizing, and Implemented or Interpreted Law: 58-1-106(1)(a); 58-1-202(1)(a); 58-55-101; 58-55-308(1)(a); 58-55-302(3)(m)