DAR File No. 38760

Commerce, Occupational and Professional Licensing

Section R156-55a-302f

Pre-licensure Education - Standards

Notice of Proposed Rule

(Amendment)

DAR File No.: 38760
Filed: 08/14/2014 10:02:13 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed rule change is made to add a section to the Construction Trades Licensing Act Rule as a result of changes made by S.B. 186 passed during the 2014 General Legislative Session. S.B. 186 added an additional requirement for contractor licensing of completion of a 20-hour course as established by rule.

Summary of the rule or change:

Section R156-55a-302f is added and establishes the standards for the 20-hour pre-licensure education requirement. The standards are divided into 12 subsections titled as follows: qualifier education requirement, program pre-approval, eligible providers, content, program schedule, program instruction requirements, certificates of completion, reporting of program completion, program monitoring, documentation retention, disciplinary proceedings and exemptions.

State statutory or constitutional authorization for this rule:

• Subsection 58-1-202(1)(a)
• Subsection 58-1-106(1)(a)
• Subsection 58-55-308(1)(a)
• Section 58-55-101
• Subsection 58-55-102(39)(a)

Anticipated cost or savings to:

the state budget:

The Division will incur minimal costs of approximately $75 to print and distribute the rule once the proposed amendments are made effective. Any costs incurred will be absorbed in the Division's current budget.

local governments:

The proposed amendments only apply to individuals who are applying to be a qualifier for new contractor licensing applicants As a result, the proposed amendments do not apply to local governments.

small businesses:

These proposed rule amendments do not add any costs to what was contemplated by the Legislature in adding the new requirement for contractor licensure. Persons applying for the contractor license will be required to take the new education requirement prior to becoming licensed. Potential education providers have not yet determined the cost they will charge for the education program. However, the cost per person could be several hundred dollars. This requirement would affect approximately 1,000 contractor applicants per year.

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

These proposed rule amendments do not add any costs to what was contemplated by the Legislature in adding the new requirement for contractor licensure. Persons applying for the contractor license will be required to take the new education requirement prior to becoming licensed. Potential education providers have not yet determined the cost they will charge for the education program. However, the cost per person could be several hundred dollars. This requirement would affect approximately 1,000 contractor applicants per year.

Compliance costs for affected persons:

These proposed rule amendments do not add any costs to what was contemplated by the Legislature in adding the new requirement for contractor licensure. Persons applying for the contractor license will be required to take the new education requirement prior to becoming licensed. Potential education providers have not yet determined the cost they will charge for the education program. However, the cost per person could be several hundred dollars. This requirement would affect approximately 1,000 contractor applicants per year.

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

This filing responds to legislative action taken in S.B. 186 (2014), which mandates that the Division require a 20-hour course as a prerequisite for licensure in the construction trades. Businesses that wish to provide the course will incur costs to develop curriculum; to obtain approval from the Division; and, if not already operating in Utah, to establish a campus within the state. Any such costs were contemplated by the Legislature in determining to require the course.

Francine A. Giani, 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:

• Dan Jones at the above address, by phone at 801-530-6720, by FAX at 801-530-6511, or by Internet E-mail at dansjones@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:

10/01/2014

Interested persons may attend a public hearing regarding this rule:

• 09/24/2014 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:

10/08/2014

Authorized by:

Mark Steinagel, Director

R156. Commerce, Occupational and Professional Licensing.

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

R156-55a-302f. Pre-licensure Education - Standards.

(1) Qualifier Education Requirement. The 20-hour pre-licensure education program required by Subsection 58-55-302(1)(e)(iii) shall be completed by the qualifier for a contractor applicant.

(2) Program Pre-Approval. A pre-licensure education provider shall submit an application for approval as a provider on the form provided by the Division. The applicant shall demonstrate compliance with Section R156-55a-302f.

(3) Eligible Providers. The following may be approved to provide pre-licensure education:

(a) a nationally or regionally recognized accredited college or university having a physical campus located within the State of Utah; or

(b) a non-profit Utah construction trades association involved in the construction trades in the State of Utah representing multiple construction trade classifications whose membership includes at least 250 contractors licensed in Utah.

(4) Content. The 20-hour program shall include the following topics and hours of education relevant to the practice of the construction trades consistent with the laws and rules of this state:

(a) ten hours of financial responsibility instruction that includes the following:

(i) record keeping and financial statements;

(ii) payroll, including:

(A) payroll taxes;

(B) worker compensation insurance requirements;

(C) unemployment insurance requirements;

(D) professional employer organization (employee leasing) alternatives;

(E) prohibitions regarding paying employees on 1099 forms as independent contractors, unless licensed or exempted;

(F) employee benefits; and

(G) Fair Labor Standard Act;

(iii) cash flow;

(iv) insurance requirements including auto, liability, and health; and

(v) independent contractor licensure and exemption requirements;

(b) six hours of construction business practices that includes the following:

(i) estimating and bidding;

(ii) contracts;

(iii) project management;

(iv) subcontractors; and

(v) suppliers;

(c) two hours of regulatory requirements that includes the following:

(i) licensing laws;

(ii) Occupational Safety and Health Administration (OSHA);

(iii) Environmental Protection Agency (EPA); and

(iv) consumer protection laws; and

(d) two hours of mechanic lien fundamentals that include the State Construction Registry.

(5) Program Schedule.

(a) A pre-licensure education provider shall offer programs at least 12 times per year.

(b) The pre-licensure education provider is not obligated to provide a course if the provider determines the enrollment is not sufficient to reach breakeven on cost.

(6) Program Instruction Requirements: The pre-licensure education shall meet the following standards:

(a) Time. Each hour of pre-licensure education credit shall consist of 60 minutes of education in the form of live lectures or training sessions. Time allowed for lunches or breaks may not be counted as part of the education time for which education credit is issued.

(b) Learning Objectives. The learning objectives of the pre-licensure education shall be reasonably and clearly stated.

(c) Teaching Methods. The pre-licensure education shall be presented in a competent and well organized manner consistent with the stated purpose and objective of the program. The student must demonstrate knowledge of the course material and must be given a pass/fail grade.

(d) Faculty. The pre-licensure education shall be prepared and presented by individuals who are qualified by education, training or experience.

(e) Distance Learning. Distance learning, internet courses, and home study courses are not allowed to meet pre-licensure education requirements.

(f) Registration and Attendance. The provider shall have a competent method of registration and verification of attendance of individuals who complete the pre-licensure education.

(g) Education Curriculum and Study/Resource Guide. The provider shall be responsible to provide or develop pre-licensure education curriculum and study/resource guide for the pre-licensure education that must be pre-approved by the Commission and the Division prior to use by the provider.

(7) Certificates of Completion. The pre-licensure education provider shall provide individuals completing the pre-licensure education a certificate that contains the following information:

(a) the date of the pre-licensure education;

(b) the name of the pre-licensure education provider;

(c) the attendee's name;

(d) verification of completion of the 20-hour requirement; and

(e) the signature of the pre-licensure education provider.

(8) Reporting of Program Completion. A pre-licensure education provider shall, within seven calendar days, submit directly to the Division verification of attendance and completion on behalf of persons attending and completing the program. This verification shall be submitted on forms provided by the Division.

(9) Program Monitoring. On a random basis, the Division or Commission may assign monitors at no charge to attend a pre-licensure education course for the purpose of evaluating the education and the instructor(s).

(10) Documentation Retention. Each provider shall for a period of four years maintain adequate documentation as proof of compliance with this section and shall, upon request, make such documentation available for review by the Division or the Commission. Documentation shall include:

(a) the dates of all pre-licensure education courses that have been completed;

(b) registration and attendance logs of individuals who completed the pre-licensure education;

(c) the name of instructors for each education course provided as a part of the program; and

(d) pre-licensure education handouts and materials.

(11) Disciplinary Proceedings. As provided in Section 58-1-401 and Subsection 58-55-302(1)(e)(iii), the Division may refuse to renew or may revoke, suspend, restrict, place on probation, issue a public reprimand to, or otherwise act upon the approval of any pre-licensure education provider, if the pre-licensure education provider fails to meet any of the requirements of this section or the provider has engaged in other unlawful or unprofessional conduct.

(12) Exemptions. In accordance with Subsection 58-55-302(1)(e)(iii), the following persons are not required to complete the pre-licensure education program requirements:

(a) a person holding a four-year bachelor degree or a two-year associate degree in Construction Management from an accredited program;

(b) a person holding an active and unrestricted Utah professional engineer license who is applying for the E100 contractor license classification; or

(c) a person who is a qualifier on an existing active and unrestricted contractor license who is:

(i) applying to add additional contractor classifications to the license; or

(ii) applying to become a qualifier on a new entity that is applying for initial licensure.

 

KEY: contractors, occupational licensing, licensing

Date of Enactment or Last Substantive Amendment: [January 21, ]2014

Notice of Continuation: October 4, 2011

Authorizing, and Implemented or Interpreted Law: 58-1-106(1)(a); 58-1-202(1)(a); 58-55-101; 58-55-308(1)(a); 58-55-102(39)(a)