In a time when people are losing jobs, their homes and the nations economy is in steep decline, a fee increase or any increase seems over reaching, burdensome and further debilitating to Contractors. More and more Contractors are closing their businesses and finding themselves out of work because of this economy; which makes every dollar that Contractors have so much more valuable. For the Board to increase our fees because of their funding deficits is the easy route and seems to only underscore this point.

In troubling times one can look at the following example: Wal-Mart, low prices equals increased sales, then look at Saks Fith Avenue, high prices equals lowers sales. Why not  seek another means of generating revenue to cover cost associated with declining licensure numbers? The Board could begin charging a fee to file a complaint and investigate it or create a link where anyone checking licensure would be asked to make a donation for using the service? Then again, maybe the Board could learn a thing or two by those whom they regulate and cut cost by letting go of certain positions and doing more with less. In difficult times increasing fees is the easy route but the Contracting industry has never been about the easy route. The Board would better serve all Contractors by foregooing the easy route an not increase the fee schedule.

I TOTALLY AGREE WITH WHAT  THE LAST GUY SAID ABOUT THE BOARD NEEDS TO STEP BACK AND RE-EVALUATE HOW TO REPLENSISH THE FUND ,THAT IS IN MY OPINION, MISMANAGEMENT OF MONEY. IT PROBABLY COMES WITH EVERY HI ARCHY POSITION OF NOMINATING YOURSELVES WITH PAY RAISES EVERY YEAR WHEN INSTEAD YOU SHOULD BE GIVING BACK TO THE SMALL BUSINESS OWNERS WHO ARE OUT HERE TRYING TO SURVIVE AND PAY TAXES SO THAT YOU GUYS WILL HAVE AN INCOME. INSTEAD WHY DON'T ALL OF YOU WHO MAKE THESE RULES, WITHOUT ANY INPUT FROM US, TAKE A PAY CUT FOR A YEAR AND SEE IF THAT DOESN'T GET THE FUND BACK TO WHERE IT NEEDS TO BE. BECAUSE MY COMPANY HAD TAKEN A BIG PAY CUT AND I DIDN'T GIVE MYSELF A RAISE !

MY HUSBAND AND I RUN A SMALL BUSINESS. WE HAVE  ALMOST CLOSED THE DOORS SEVERAL TIMES, BUT WE CUT BACK ON FOOD, ALL PLEASURES AND JUST CASHED IN ON ALL OUR RETIREMENT FUNDS. THIS IS ACTUALLY SICKENING THAT YOU WILL SUSPEND OUR LICENSE IF WE DO NOT PAY THIS. I HAVE NOT WORKED SINCE JUNE 2008, MY HUSBAND SOLE PROPRIETOR PAYS ME AS AN EMPLOYEE, I CAN NOT FIND A JOB, I GET NO UNEMPLOYMENT, AND WE HAVE NO RETIREMENT NOW, BECAUSE WE ARE TRYING NOT TO LAY OFF EMPLOYEES. WHAT IS GOING ON?  IS THIS GREED? $20.00 WILL BUY US FOOD AND GAS. I CAN NOT BELIEVE THE GOV. OKS THIS WITH WHAT IS HAPPENING TODAY. I WILL BE LETTING EVERYONE KNOW ON RECOVERY .GOV. WHAT IS HAPPENING, THIS INDUSTRY IS IN THE WORST SHAPE.

Again Goverment is taking from the people it's supposed to be working for this time they have their hands in the small buisness pockets and calling it a special assessment, but is sounds more like black mail. If fees for contractor lic need to go up do it at the renewal time don't threaten us with taking away are lic to operate if we don't agree to pay more for a lic we already have.

I received my DPOR license renewal bill in early March and sent the payment on March 10.  On March 16  I received another invoice from DPOR requesting an additional $20.00 for the recovery fund.  How cost effective is this?  Could this not have been handled in a single mailing? 

REDUCE YOUR COSTS, AS WE HAVE TO DO.  DON'T INCREASE OUR TAXES.

Okay, so I read about the increase in contracting licensure fees on one day only to turn around and find a "special assesment' in my mailbox five days later. it is clear to me the the government, as usual, will take from teh people only to support itself and its own survival. What we've got here is a bloated agency with policies that were written from a different era based upon an outlook which was a pipedream. The contractor recovery fund is something that needs to be done away with. It is not the governments role to make an individual whole who may have been done wrong by a business they license. That is the risk the individual takes by "Contracting" with the business and there is already a system for that. It's called civil court or even, god forbid, criminal court.We are being bled dry by this bureaucratic entity and only we have the power to change it. Do as Mary suggest, write your governor and add your distric representative to that list as well. Governor Kaine: http://www.governor.virginia.gov/CitizenServices/contactGovOffice.cfm and this address to find your congressman/senator http://conview.state.va.us/whosmy.nsf/main?openform. Keep up the fight and tell everyone you know how our state is failing us all. Remember "all power is vested in, and consequently derived from, the people, that magistrates are their trustees and servants, and at all times amenable to them" (VA Constitution).

Why why why Do I have to support a fund that does what? You have got to be kidding me!

Where can I find what payments were made FROM this fund and why?  

Joe and all others interested. While I am not an attorney and in no way offer legal advise, I maybe able to point you in the right direction for an answer. You may be able to make a FOIA request. Believe it or not Virginia does have an agency charged with aiding citizens in their request. You can find them here: http://dls.state.va.us/foiacouncil.htm. They have sample letters and may even be able to direct you on where to send your request. If anyone else has more information or if I am mistaken please contribute.

  I just paid to renew my License, ($40.00) only to find out, " Sorry, we can't renew it because you haven't passed the continuing educaation test."..ok...so, after about another $104.00 I do the stupid test,  ( which was BS ) only to recieve yet another...."we need a "special assesment" !  Ask for any more, and you know where you at the DPOR can put my License.... I thought  "Commonwealth", meant "Share the Wealth" ? Threats to take away my License if it's not paid shows you HOW MUCH the State cares about us Contractors. I agree w/ the other writers...why don't you all take a PAYCUT?

I would like to know how the recovery fund could have  gone below $400,000  when there hasn't been any construction for more than a year. Also I would like to know if anyone in the government reads these forums?  ANd I would like to know who is a member of the Recovery fund Board and who are the contractors sitting on the Board and how did they get appointed?

Regards

PW

We all have to pay for bad contractors.  Why not just pay your fee and give them the funds to root out the bad contractors?   I don’t mind paying if the bad ones are going to be rooted out. 

The bottom line is you have to pay to play.

 "It is no use saying, 'we are doing our best.' You have got to succeed in doing what is necessary." -- Winston Churchill

Eric L. Olson

Executive Director

Board for Contractors

9960 Mayland Drive

Richmond, Virginia 23233

Dear Mr. Olson:

On behalf of the nearly 5000 business members of the Home Builders Association of Virginia (HBAV), I appreciate this opportunity to comment on the proposed fee increases for contractor license issuance and renewal contained at 18VAC50-22-100 et al.  HBAV represents the development industry in Virginia, which is comprised of a large number of contractors.  As a result HBAV’s members will be negatively impacted by this fee increase.  For that reason HBAV opposes the fee increase and believes the Board for Contractors should implement cost-cutting strategies prior to the increase in fees.

I.   The Board and Department of Planning and Budget Erroneously Concluded that the Fee Increases are Insignificant.

In the supporting documents accompanying the regulatory language, the Department notes that the fee increases are small and represent an insignificant increase in cost to the contractor.  HBAV disagrees with this statement.  In these trying financial times, seemingly insignificant sums of money can be the difference between being open for business and padlocks on the doors for even the most established contracting firm.  Housing starts in Virginia have decreased in Virginia from 49,000 in 2005 when the fees were last increase to just over 18,000 in 2008 and show no signs of increasing for 2009.

II.  The Department has Failed to Implement Prudent Budget Cuts to Account for Revenue Shortfalls.

Furthermore, contained within the Agency Background Document supporting the request for the fee increase, the Department provides a snapshot of current financial status and projected financial status over the next two biennia.  In the next four fiscal years, the Department anticipates an increase in expenditures of approximately $1 million per year. 

Over the last several years the regulated community has experienced a well documented decline in business.  Many if not all of the licensees have had to make very difficult decisions in these troubling times to cut budgets and cut staff.  It is only appropriate that the agency responsible for regulating that industry should take the same responsible step of cutting their budget to mirror the downturn in the market.

The Board increased licensure fees in 2005.  In the last two biennial budget cycles since the last fee increase, the Department’s  expenses have increased by approximately $1 million per year while revenues continue to decline.  In their supporting documents the Department notes that budget cuts were not considered for fear of a decrease in services.  HBAV asserts that a reduction in services is appropriate.  Given the record low level of housing starts, and the significant impact the economy has had on the housing market and building industry, the call for services from the Board should be diminished for the next several years.

For the reasons stated in Sections I and II above HBAV encourages the Board to reject the increases in licensure application and renewal fees.

III.  Regulatory Statement of an Assessment on Licensure Renewal for the Transaction Recovery Fund by Regulation at 18VAC50-22-140 and 18VAC 50-22-170 is Unnecessary and May Violate Statute.

Beyond the financial burden placed upon the contracting industry, HBAV believes that the Board for Contractors is enacting regulations beyond their statutory authority. According to Code Section 54.1-1119 the Director must notify the Board whenever Transaction Recovery Fund balance dips below $400,000 in the, and the Board then must assess an appropriate amount upon each regulant at the time of the renewal of their license.  Each regulant must be notified by mail of the special assessment.  Once the fund has risen  above the $400,000 minimum balance, the special assessments must cease.  Placing the requirement for a $50 assessment in the regulation is both unnecessary and violates section 54.1-1119 by making a special assessment a permanent regular assessment.  HBAV encourages the Board to delete any reference to an assessment for the Transaction Recovery Fund from the license renewal sections.

HBAV believes that this fee increase for contractor licensure is poorly timed, and irresponsible given the current financial climate.  HBAV asks that you abandon this regulatory action.

Sincerely,

Barrett Hardiman

Vice President of Regulatory Affairs

Type over this text and enter your comments here. You are limited to approximately 3000 word

Fee increases at this time with contractors faced with the most difficult economic challenges in my

memory. I have been in the industry for more than 50 years. Speaking from experience, I question the

wisdom of any increases with contractors facing survival !!!

While everyone else is having to batten down the hatches during this economy, DPOR has not recieved the message. The state budget has shown all tax payers that the Commonwealth has no idea what small businesses have to comply with just to keep our doors open so we can continue sending in our tax dollars. Increasing fees in these hard times for all of us that support the Housing Industry is breaking the stick on the backs of those that create jobs and supply the necessity of a roof over our heads. Please do as the private sector has had to do over these past three years which is to cut the cost of doing business without increasing our prices. With increases between 36-65% we all could continue to do business as usual and even give ourselves salary bonuses. Every little bit helps with bringing this economy around to the positive again. Thank you (in advance) for not imposing these increases at this time.  

As a small business owner, when my expenses exceed my revenue, I don't have the luxury of going to my customers or constituents and increase their invoice to close the gap of shortfall. I must look for ways to cut expenses. In these difficult economic times, I’m forced to make gut-wrenching decisions to reduce expenses. It seems to me that DPOR and the Board for Contractors would support the industry it depends on for revenue and attempt to trim expenses. Likely, the downturn in business has resulted in a downturn in your activity. I have downsized to a skeleton crew and am doing double duty, as is my staff. In this economy, everyone sacrifices, and I would hope that your organization will show the leadership and compassion that you are known for and suspend any fee increases at this time. Thank you.   

I am writing to state my opposition to the proposed fee increases. Every contractor and supplier in the building industry has been dramatically impacted by the downturn in the economy. The statistics for unemployment do not include the tens of thousands of self-employed contractors and sub-contractors that have not had work to perform. Many of these contractors and sub-contractors have been surviving on very little, struggling to make ends meet, and even closing their businesses.   They have no resource for help except “HOPE”. 

• They “HOPE” the American Dream of Owning a Home will help turn this economy around and get them back to work.
• They “HOPE” the government will make regulatory decisions that will be part of a solution to the issues versus adding to the business struggles that they are currently facing. 
• They “HOPE” that the economy recovers soon so they do not lose everything they have worked so hard for over so many years. There are several multi-generation contractors that are struggling not because of ability or reputation, but because of the current economic state. 

Thank you for allowing me the opportunity to comment on the proposed fee increases for contractor license issuance and renewal contained at 18VAC50-22-100 et al.  I am the 2009 president of the Home Builders Association of Virginia (HBAV) and would like to object to the proposed fee increases.  Our approximately 5000 residential and commercial businesses represent the development industry in Virginia, a large number of which are contractors.  Again, let me state the proposed fee increases will negatively impact these contractors at a time when they can least afford it.  

The Department suggests that the fee increases are small and represent an insignificant increase in cost to the contractor.  I could not disagree more strongly.  In these difficult economic times, seemingly small fee increases can be the difference between being open for business or closed.  Therefore, HBAV encourages the Board to reject the increases in licensure application and renewal fees. 

Over the last several years our industry has experienced a severe decline in business.  In Virginia, housing starts have drastically decreased from 49,000 in 2005 when the fees were last increased to just over 18,000 in 2008.  This same benchmark continues a distressing trend and is projected to decline further to 15,000 in 2009.  Many if not all contractors have made very difficult decisions in these troubling times to cut budgets and staff.  It is only appropriate that the agency responsible for regulating our industry should make the same responsible step of cutting their budget to mirror the downturn in the market.  In their supporting documents the Department notes that budget cuts were not considered for fear of a decrease in services.  Given the record low level of housing starts HBAV asserts that a reduction in services is appropriate. For that reason, HBAV believes the Board for Contractors should implement cost-cutting strategies prior to any increase in fees.

Beyond the ill-timed financial burden placed upon the contracting industry, HBAV believes that the Board for Contractors is enacting regulations beyond their statutory authority.  According to Code Section 54.1-1119 the Director must notify the Board whenever the Transaction Recovery Fund balance dips below $400,000.  The Board must then assess an appropriate amount on each contractor at the time of their license renewal.  Each contractor must then be notified by mail of the special assessment.  Once the fund rises above the $400,000 minimum balance the special assessments must cease.  Placing the requirement for a $50 assessment in the regulation is both unnecessary and violates section 54.1-1119 by making a special assessment a permanent regular assessment. HBAV encourages the Board to delete any reference to an assessment for the Transaction Recovery Fund from the license renewal sections.

HBAV believes that this proposed fee increase for contractor licensure is poorly timed and inappropriate given the difficult economic climate.  HBAV requests the Boards understanding and asks that you abandon this regulatory action.

Sincerely,

Rand Sompayrac

President, Home builders Association of Virginia

Please consider carefully the impact of the proposed increase in licensing fees.  We as builders are making very tough decisions on a daily basis, trimming staff, reducing overhead, and sacrificing profit.  These actions are not optional for us.  We must either reduce expenses, or face a deficit in our operating budgets. 

Likewise, we citizens of the Commonwealth are making tough decisions.  When income declines, so must our expenditures.

Please consider the message that a fee increase sends to the citizens of the Commonwealth.  It says that our regulatory agency cannot, or will not make the tough decisions that the citizens are making.  Please be responsible in your decision on this matter.  We, the contractors and citizens of Virginia are not financially or philosophically  in a position to absorb the additional cost.

Thank you for your thoughtful consideration.

Matt Clark, President

Clark & Company

Mr. Olson, I am very concerned about the proposed fee adjustments for contractors. My company has been hit very hard and I have only scraped by for the last nine months. With the reduced amount of new jobs and the reduction of the size of jobs I have had to lay-off most of my staff and not been able to pay myself since the first off the year. I think it is unfair to raise rates under these troubled times. It would seem fit for the services and the size of this department to be adjusted to match the industry that it serves. Please don’t raise the fees on my contractor’s license. Thank you for your helpful understanding. Neal frank-Rempel

I haven't checked the board in a while so, it was great to see so many comments from the Contracting/Building community. Good job people!

William Wallace: I *am* William Wallace! And I see a whole army of my countrymen, here in defiance of tyranny. You've come to fight as free men... and free men you are. What will you do with that freedom? Will you fight?
Veteran: Fight? Against that? No! We will run. And we will live.
William Wallace: Aye, fight and you may die. Run, and you'll live... at least a while. And dying in your beds, many years from now, would you be willin' to trade ALL the days, from this day to that, for one chance, just one chance, to come back here and tell our enemies that they may take our lives, but they'll never take... OUR FREEDOM!
 

In this very difficult economic situation most small businesses are doing everything they can to stay open.  New licensing requirements for our industry from DPOR will add several thousand dollars a year to our cost of doing business.  Adding in these increases will hurt us and all small businesses in Virginia. 

This is not the time to increase fees on businesses.  Our government should be doing all it can to help us, not make it more difficult for us to continue to work.  This IS the time for all government agencies to be looking to their own budgets and reducing their expenses in any way they can.  With the slowdown in building and all related trades, the work load on this agency should be greatly reduced.  Please look to your own house before you dip into our pockets again.