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Construction Law

ROC Rule Changes in Effect July 1, 2014

New rules affecting Arizona contractors pertain to license fees and classifications, bond requirements, trade examinations and more.

 

The Arizona Registrar of Contractors has announced several rule changes that went into effect July 1. Below are a few of the rules that we believe will interest most contractors.

License Classifications

 

This article appeared in the May 2014 issue of "The Construction Advisor" and was updated July 2, 2014


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This rulemaking reduces the number of license classifications by consolidating many commercial and residential licenses into the comparable dual license.

  • The specialty residential license designation will change from “C” to “R.”

  • The specialty commercial license designation will change from “L” to “C.”

  • The specialty dual license designation will change from “K” to “CR.”

License reclassifications occur automatically, without any action taken by licensees. Where the reclassifications cause a change in license fee, the different fee amount is not required until the next license renewal.

License reclassifications 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 into CR-1 license. In these situations, the licensee will save money by cancelling one of the licenses. The ROC will not cancel a license without the person submitting a License Cancellation Form for one of the licenses. Previously paid license fees will not be refunded.

Fees for New Licenses

Effective July 1, the total cost of a new license is reduced, per the table below. The total includes the application fee, license fee and, for residential and dual licensees, Recovery Fund contribution.

  Current Eff. 7-1-14 Change
General Commercial $ 890 $ 780 $ -110
Specialty Commercial 645 580 -65
General Residential 895 870 -25
Specialty Residential 770 720 -50
General Dual 1,555 1,050 -505
Specialty Dual 1,265 850 -415

Fees for License Renewals

For license renewals that do not involve a change of classification, the total cost of the renewal will either decrease or stay the same.

  Current Eff. 7-1-14 Change
General Commercial $ 580 $ 580 $ 0
Specialty Commercial 490 480 -10
General Residential 590 590 0
Specialty Residential 540 540 0
General Dual 1,160 750 -410
Specialty Dual 1,030 650 -380

For license renewals that involve a change of classification, from commercial or residential to dual, the total cost of the renewal will increase. For commercial licensees making the change to dual, they will become liable for a Recovery Fund contribution that is included in the totals below:

  Current Eff. 7-1-14 Change
General Commercial $ 580 $ 750 $ 170
Specialty Commercial 490 650 160
General Residential 590 750 160
Specialty Residential 540 650 110

Bond Amounts

Nearly all bond amounts are increased (summary).

Applications for New Contractor Licenses

The applicant must have taken the correct trade exam for the license classification. According to the ROC, 70% of the affected classifications have the same trade exam; 26% of the affected classifications change from no trade exam to a trade exam; and 4% of the classifications require a different exam.