Electricians Proposed Rules

Chapter 73. Electricians
Proposal Filed:  July 26, 2012 – Published in the Texas Register:  August 10, 2012
Deadline for Public Comment:  September 10, 2012

Underlined text is new language.
[Strike-thru text] is deleted language.

Texas Department of Licensing and Regulation (Department) proposes amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 73, §§73.10, 73.51, 73.52, and 73.54, regarding the electricians program. The proposed rule amendments implement changes advocated by the Electrical Safety and Licensing Advisory Board (Board) to benefit public safety. These rule amendments are proposed under the authority of the Texas Occupations Code, §1305.102(a), which allows the Executive Director to adopt rules for the licensing of electricians, sign electricians, electrical sign contractors, electrical contractors, residential appliance installers, and residential appliance installation contractors.

Section 73.10 establishes definitions, in addition to those found in Texas Occupations Code, Chapter 1305, for terms that are used in this chapter. The proposed rule amendment to §73.10(7) changes the definition of “on-site supervision” to require a supervisor to be present at each site or residential subdivision. The proposed rule amendments require the responsible contractor and master of record to be responsible for on-site supervision of apprentices. Previously the rules did not specifically require a supervising licensee to be present at the site or residential subdivision. It was left to the individual sponsoring master licensee and contractor to determine how supervision of apprentices was achieved as part of their self-determined business practices.

The proposed rule amendment to §73.51(g) delineates that the licensed electrical contractor and its designated master electrician of record are responsible for general and on-site supervision of all licensees performing work on behalf of the contractor.

The proposed rule amendment to §73.52(g) delineates that the licensed electrical sign contractor and its designated master electrician or master sign electrician of record are responsible for general and on-site supervision of all licensees performing work on behalf of the contractor.

The proposed rule amendment to §73.54(f) delineates that the licensed residential appliance contractor and its designated residential appliance installer of record are responsible for general and on-site supervision of all licensees performing work on behalf of the contractor.

The substance of these proposed rule changes was recommended by the Board at its meeting on June 28, 2012, to further public safety and welfare.

William H. Kuntz, Jr., Executive Director, has determined that for the first five-year period the proposed rule amendments are in effect, enforcing or administering the rules will increase costs to the state if additional staff is needed to visit job sites. There are no foreseeable implications relating to the costs or revenues of local governments or revenues to the state.

Mr. Kuntz also has determined that for each year of the first five-year period the proposed rule amendments are in effect, the public benefit will be increased supervision of apprentices performing electrical work in homes and businesses.

Mr. Kuntz also has determined that for each year of the first five-year period the proposed rule amendments are in effect, there may be anticipated adverse economic effect on small or micro-business and  other  persons who are required to comply with the rule as proposed. As a result, the agency has prepared an Economic Impact Statement and a Regulatory Flexibility Analysis, as required under Texas Government Code §2006.002.

As of June 30, 2012, the Department licensed 9,254 electrical contractors, including electrical contractors, electrical sign contractors, and residential appliance installation contractors. It may be determined that individual licensees may qualify as small or micro-businesses. The Department does not track the number of employees or annual gross profits of any licensed contractor. The Comptroller of Public Accounts has developed a website (TRACER) to assist agencies in determining a proposed rule’s adverse economic effect on small business. According to TRACER, small businesses under Building Equipment Contractors classification number 224,224. However, this includes a number of construction contractors, including, but not limited to, electrical contractors and other wiring installation contractors, plumbing, heating, and air-condition contractors, and other building equipment contractors. With the limited information available to the Department to qualify small or micro-businesses for purposes of this statement, it may be concluded that fewer than 9,254 small or micro-businesses may be affected by this proposed rule change.

Under the current rule, it is possible for a licensed contractor to keep a supervising licensee on-site, but it does not require it. Any contractor with a business model that included an on-site supervising licensee would likely not have any increased costs as a result of adoption of the proposed rule amendments. However, for any contractor that did not currently employ on-site supervising licensees, the economic impact could reflect increased cost and/or loss of business opportunities. A small or micro-business would be limited to working on the number of sites for which it has supervising licensees. This may result in fewer contracts to the small contractor given the ability of the licensed contractor to hire more qualified supervising licensees to accommodate multiple job sites. For those contractors that must obtain more supervising licensee staff, there will be an increased cost to do business in hiring those supervising staff for each job site.

Under Texas Government Code §2006.002, an agency is required to consider alternative regulatory methods only if the alternative methods would be consistent with the health, safety, environmental, and economic welfare of the state. In preparing the proposed rule amendments, the Department reviewed options regarding the on-site supervision of apprentices. Under these deliberations, the Department considered not changing the current rule. The ultimate responsibility to perform electrical work correctly and responsibly under the statute, rules, the adopted National Electric Code, and in applicable areas, municipal code compliance reviews falls on the shoulders of the sponsoring master licensee and contractor. The business practice of how to live up to those responsibilities has largely been under the discretion of the responsible individual licensee in their business practices. The proposed rule amendments are advocated for the furtherance of greater supervision of apprentices. No incident demonstrating the current rules as insufficient to protect public safety has been identified; therefore, the current rule might also be considered consistent with protecting the health and safety of the public.

Comments on the proposal may be submitted by mail to Shanna Dawson, Legal Assistant, General Counsel’s Office, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, or by facsimile to 512/475-3032, or electronically to erule.comments@tdlr.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The rule amendments are proposed under Texas Occupations Code, Chapter 51 and Chapter 1305, which authorize the Texas Commission of Licensing and Regulation, the Department’s governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposal are those set forth in Texas Occupations Code, Chapter 51. No other statutes, articles, or codes are affected by the proposal.

§73.10. Definitions

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.

(1)-(6) (No change.)

(7) On-Site Supervision--Exercise of supervision of electrical work or electrical sign work by a licensed individual other than an electrical apprentice. Continuous supervision of an electrical apprentice is not required, though the on-site supervising licensee is responsible for review and inspection of the electrical apprentice’s work to ensure compliance with any applicable codes or standards and must be present at each site or residential subdivision.

(8)-(26) (No change.)

§73.51. Electrical Contractors’ Responsibilities.

(a)-(f) (No change.)

(g) A licensed electrical contractor and its designated master electrician of record is responsible for general and on-site supervision of all licensees performing work on behalf of the contractor to assure compliance with applicable statutes and rules and in particular, standards of conduct set out in this chapter.

(h) (No change.)

§73.52. Electrical Sign Contractors’ Responsibilities

(a)-(f) (No change.)

(g) A licensed electrical sign contractor and its designated master electrician or master sign electrician of record is responsible for the general and on-site supervision of all licensees performing work on behalf of the contractor to assure compliance with applicable statutes and rules and in particular, standards of conduct set out in this chapter.

(h) (No change.)

§73.54. Residential Appliance Installation Contractors’ Responsibilities.

(a)-(e) (No change.)

(f) A licensed residential appliance installation contractor and its designated residential appliance installer of record is responsible for the general and on-site supervision of all licensees performing work on behalf of the contractor to assure compliance with applicable statutes and rules and in particular, standards of conduct set out in this chapter.

(g) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be a valid exercise of the agency’s legal authority.

Filed with the Office of the Secretary of State, on July 26, 2012.

William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation

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