Rule-Making Notices
Notice of Hearing
Commerce
Licenses, Certifications and Registrations, Ch.
Comm 5
NOTICE IS HEREBY GIVEN that pursuant to ss.
101.17 and
227.24 (4), Stats., the Department of Commerce will hold a public hearing on emergency rules revising section
Comm 5.30, relating to building contractor registration.
Hearing Information
The public hearing will be held as follows:
Date and Time:
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Location:
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March 31, 2009
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Conference Room 3B
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1:00 p.m.
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Thompson Commerce Center
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201 West Washington Avenue
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Madison
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This hearing is held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call (608) 266-8741 or (608) 264-8777 (TTY) at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.
Appearances at Hearing and Submission of Written Comments
Interested persons are invited to appear at the hearing and present comments on the emergency rules. Persons making oral presentations are requested to submit their comments in writing. Persons submitting comments will not receive individual responses. The hearing record on the emergency rules will remain open until April 10, 2009, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. Written comments should be submitted to James Quast, at the Department of Commerce, P.O. Box 2689, Madison, WI 53701-2689, or Email at
jim.quast@wisconsin.gov.
Copies of Emergency Rule
The emergency rules and an analysis of the rules are available on the Internet at the Safety and Buildings Division Web site at
www.commerce.wi.gov/SB/. Paper copies may be obtained without cost from Roberta Ward, at the Department of Commerce, Program Development Bureau, P.O. Box 2689, Madison, WI 53701-2689, or Email at
roberta.ward@wisconsin.gov, or at telephone (608) 266-8741 or (608) 264-8777 (TTY). Copies will also be available at the public hearing.
Analysis Prepared by Department of Commerce
The Wisconsin Department of Commerce adopts an order to create Comm 5.01 (4) (h), Comm 5.02 Table 5.02 line 8m., Comm 5.02 Table 5.02 footnote a, Comm 5.06 Table 5.06 line 8m., Comm 5.30 and Comm 61.295 relating to building contractors and affecting small business.
Statutes interpreted
Sections
101.02 (1),
(4),
(13) (b),
(15) (a),
(b),
(f),
(h),
(k) and
(L),
101.12 (3) (h),
101.19 (1) (f),
101.63 (1),
145.02 (2) and
(3),
560.01 (1) and
(2), and
560.02 (4), Stats.
Statutory authority
Sections
101.02 (1),
(4),
(13) (b),
(15) (a),
(b),
(f),
(h),
(k) and
(L),
101.12 (3) (h),
101.63 (1),
145.02 (2) and
(3),
560.01 (1) and
(2), and
560.02 (4), Stats.
Related statute or rule
Statutes:
Sections
101.148,
101.178,
101.654,
101.862,
101.94,
101.95,
101.951,
101.96,
101.985 (1), and
895.07 (13), Stats.
Administrative Rules:
Explanation of agency authority
Under chapter 560 of the Wisconsin Statutes, the Department of Commerce is charged with facilitating the establishment and retention of business enterprises in Wisconsin, and seeking closer cooperation and coordination between units of state government, so that the economy of the state may continue to develop fully and meet citizen and community needs.
Under chapters 101 and 145 of the Wisconsin Statutes, the Department of Commerce also protects public health, safety, and welfare by promulgating comprehensive requirements for design, construction, use and maintenance of public buildings and places of employment, public swimming pools and water attractions and adopts rules that establish uniform, statewide standards for the construction of one- and 2-family dwellings. Various construction trades are involved in building or modifying these types of structures. Together with building owners and designers, construction trades share a responsibility to ensure that the buildings, relative to the respective trade's work, do not pose risk to public health and safety.
The registration would enhance the department's communication, education and oversight efforts for those businesses that contribute in various ways and aspects to the creation or alteration of buildings that limit the safety and health risks for the citizens of Wisconsin. Utilizing the registry of building contractors the department will more efficiently and effectively inform contractors about safety regulations and consumer protection regulations, such as the consumer notice required under s.
101.148 (2), Stats., pertaining to procedures for addressing construction defects.
The department recognizes that by registering Wisconsin building contractors and subcontractors, information pertaining to such registrants can be posted on the internet and made available to the Wisconsin Departments of Workforce Development and Revenue for use in their administration of unemployment insurance, workers compensation insurance and income tax programs, respectively. The registry of building contractors can be used by the aforementioned agencies to reinforce their efforts to minimize the misclassification of employees and to maximize proper participation in unemployment insurance and workers compensation insurance programs and proper payment of income taxes.
Summary of proposed rules
The proposed rules require a registration credential for various building contactors who are involved in the construction or modification of public buildings and places of employment and one- and 2-family dwellings, unless the contractor already holds another type of contractor credential issued by the department. The registration credential is for a contracting business and is not required for each partner or employee who is involved with physically constructing or modifying the structures.
Comparison with federal regulations
An internet-based search of the code of federal regulations and the federal register did not identify any federal requirements relating to contractor registrations.
Comparison with rules in adjacent states
An Internet-based search for the states of Illinois, Iowa, Michigan and Minnesota found the following:
Illinois:
The state of Illinois does not have any regulations regarding the licensure of building contractors, except roofers.
Iowa:
The state of Iowa requires all individual contractors and businesses performing construction work in Iowa to be registered. The fee is $25 for a two year registration. The prerequisites for registration include the demonstration of compliance with worker's compensation insurance requirements and compliance with unemployment tax requirements.
Michigan:
The state of Michigan requires licenses for persons and businesses that contract with property owners to build new homes or remodel homes. The license types are: Residential Builder, and Maintenance and Alteration Contractor. The Maintenance and Alteration Contractor is restricted to perform only specific trades and services for which they are licensed. The fee is $225 for a three year license. Applicants for the license must complete 60 hours of approved education and pass an examination. Michigan does not have a licensing law regulating builders of commercial buildings.
Minnesota:
The state of Minnesota requires certifications for persons and businesses that contract with property owners to construct or improve dwellings for habitation by one to four families and where the person or business is involved with two or more special building skills. The Residential Contractor license and Remodeler license are annual licenses. The fees, which are based upon gross receipts, are $260 to $360. The application for the license must include a qualifying person who must take the required examination and fulfill the continuing education requirements for the licensee.
Also under the Minnesota Independent Contractor Certification Law, as of January 1, 2009, a certification is required for building contractors where contractors must establish that they are independent contractors versus employees utilizing the “9 Items" test related to Worker's Compensation. The fee for a two year certification is $250.
Summary of factual data and analytical methodologies
The registration provisions of the proposed rules were developed by analyzing and comparing the current administrative rules under chapter Comm 5 for other types of building contractors currently licensed, certified or registered by the department. The concept of the contractor registration was developed in light of proposed Wisconsin legislation under 2007 SB228 and AB466, and with consideration of legislation in the states adjacent to Wisconsin.
Small Business Impact
The proposed rules require the registration of individuals and entities that act as building contractors or subcontractors who are involved in the construction or modification of public buildings, places of employment and one- and 2- family dwellings and who are not already credentialed by the department. The department currently credentials several contracting trades, including dwelling contractors, HVAC contractors, electrical contractors and elevator contractors. The rules would apply to those persons and entities engaged in the business of commercial general construction, drywall, plastering, electrical wiring, finish carpentry, flooring, framing carpentry, glass and glazing, insulation, masonry and stone work, plumbing, concrete work, roofing, siding, building site preparation and/or stabilization, structural steel, tile and terrazzo, wall coverings, and other building or equipment specialties.
The department estimates that the number of contractors to be registered under the rules would be 30,000. A contractor registration would cost $100 for a 4-year term if applied for electronically and $115 if applied for via paper. The department does not believe that this registration and fee would pose a significant impact on businesses.
An economic impact report has not been required to be prepared.
Small business regulatory coordinator
Carol Dunn
Phone: (608) 267-0297
Fiscal Estimate
Summary
The rules require a registration credential for various building contactors who are involved in the construction or modification of public buildings and places of employment and one- and 2-family dwellings, unless the contractor already holds another type of contractor credential issued by the department. The type of contracting businesses required to be registered under the rules include commercial general construction, drywall, plastering, electrical wiring, finish carpentry, flooring, framing carpentry, glass and glazing, insulation, masonry and stone work, plumbing, concrete work, roofing, siding, building site preparation and/or stabilization, structural steel, tile and terrazzo, wall coverings, and other building or equipment specialties.
