OCTOBER 1, 2014

Recent rulemaking reduces regulation

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The Registrar of Contractors is pleased to announce that a recent rulemaking reduced regulation by (1) reducing fees, (2) eliminating license classifications, and (3) establishing a process to waive licensing examinations.

(1) Reduced Fees:
This rulemaking reduced fees for all new applicants and many renewal applicants. These fee reductions will reduce agency revenue by over $2 million (or 20%) each year. More importantly, this money will stay in the private sector. Thousands of business owners will keep hundreds of dollars. This significant fee reduction became possible because of significant spending reductions made during the past few years.

(2) Eliminated License Classifications:
This rulemaking reduced the number of license classifications from 238 to 136. The license consolidations also enable thousands of contractors who were previously limited to working on only residential or only commercial property to be allowed to work on either property type. This change benefits contractors by expanding the available work opportunities. This change also benefits consumers by increasing competition for their construction projects.

(3) Established a Process to Waive Licensing Exams:
This rulemaking established a process to waive trade exams for contractors licensed in other states. Pursuant to statute, passing a trade exam is one of the requirements to obtain an Arizona contractor license. Unfortunately, in situations where a qualified applicant, with a license in another state, seeks to get a license in Arizona this required trade exam functions more like an unnecessary hurdle. Establishing this process to waive trade exams will benefit thousands of applicants by reducing unnecessary licensing hurdles.

These regulatory reductions ensure that all qualified contractors have the opportunity to obtain a contractor license and operate their business without unnecessary government-imposed burdens.

For more information see the related Director’s Message dated 9/22/2014 in the ROC News section at www.azroc.gov, or to request an interview with Director Mundell, contact Tyler Palmer, Chief of Staff for the Arizona Registrar of Contractors at 602-771-6710.