Before conducting operations, Arizona contractors need to meet a number of requirements in order to get licensed, such as posting a contractor’s license bond in the state. For some projects, you may need to work across a couple of states, each of which has separate licensing criteria. Arizona contractors license reciprocity agreements make the process of obtaining licenses in other states smoother.
Such agreements are signed between licensing authorities in order to allow contractors with proven credentials to easily launch their business in non-home states. The reciprocity does not entail full transferability of licenses. It just helps you get the licensing faster since you’ve already met a number of solid criteria in your home state.
Currently, Arizona has agreements with California, Nevada and Utah. In order to qualify for using the reciprocity rule with these states, you have to provide proof of the following:
- That you have been licensed for more than five years
- That you are providing a license verification with the new application
- That you have successfully passed the business management exam in Arizona
If you’re an Arizona contractor interested in exploring opportunities across state borders, below you can learn the main rules that govern license reciprocity with the mentioned states.
The reciprocity agreement between Arizona and California allows contractors to start business in the other state in an easier way. You can consult the Reciprocal Classifications List to see what your Arizona classification corresponds to in California. For example, Class B General Residential Contractor License in Arizona translates to Class B General Building in California.
If granted reciprocity, you can get a waiver for trade exams you have already passed in your home state. However, you will still need to pass the business law exam of the California Contractors State License Board. You will also have to obtain a $15,000 California license bond, even though you have posted an Arizona contractor license bond.
The reciprocity agreement between Arizona and Nevada entails similar rules for starting your contractorship in the other state. You can apply for a waiver from the trade exam for the specialty you are applying in Nevada. You have to show proof of an active Arizona license for the last five of seven years. Electrical and plumbing contractors, however, cannot get a waiver. They need to pass the relevant trade exam in Nevada as well.
As in California, you need to get a contractor license bond in Nevada on top of your Arizona one. You also need to meet all other licensing requirements set by the Nevada State Contractors Board.
In order to benefit from the reciprocity rules between Arizona and Utah, you have to show proof of professional experience in Arizona that is equal to the required years of experience in Utah. You may be able to obtain a trade exam waiver if you can prove this and have previously passed the Arizona exams successfully. You will still need to sit the Utah Business Law exam
Arizona classifications A, KA and A17 are converted into Utah classification E100, B1 and KB-1 – into Utah classification B100, and B-2, B, C and KB-2 – into Utah classification R100. However, you still need to provide a Utah contractor license bond to the Utah Division of Occupational and Professional Licensing. You are also required to demonstrate that you meet all other licensing criteria in the new state.
Do you have experience with Arizona contractors license reciprocity agreements? Please share your insights in the comments below.