1.2 Application Requirements, Qualifying Party Duties & Experience Standards

Application Requirements, Qualifying Party Duties & Experience Standards

Obtaining an Arizona HVAC/R contractor license requires meeting rigorous technical, administrative, and legal standards established by the ROC. The licensing process ensures that every business entity authorized to perform mechanical work possesses verified trade competency, sound business knowledge, and active supervisory leadership.

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1. Trade Experience Standards & Verification (A.R.S. § 32-1122(B)(1))

The experience standard is statutory, not a rule: A.R.S. § 32-1122(B)(1) requires the designated Qualifying Party (QP) for an R-39R, C-39, or CR-39 license to demonstrate substantial, verifiable trade experience. (A.A.C. R4-9-106 governs examinations, not experience — do not cite it for this requirement.)

• Experience Duration: A minimum of 4 years (48 months) of practical or management trade experience, at least 2 years of which must have been within the last 10 years, dealing specifically with the type of construction for which the license is sought, or its equivalent.
• Nature of the Experience: The experience must be specific to air conditioning and refrigeration contracting — diagnostic troubleshooting, refrigerant recovery and charging, electrical control wiring, brazing, combustion analysis, and complete system installations — or the management of that work.
• Verification Documentation: Experience is documented through Work Experience Verification Forms signed by former employers, licensed contractors, union business agents, or building officials with direct personal knowledge of the applicant's trade work. Under § 32-1122(B)(1) the Registrar waives work-experience documentation and verification where its records show the qualifying party is, or previously was, a qualifying party for a licensee in this state.
• Registrar Discretion: The Registrar may reduce the four-year requirement where custom and usage in the particular craft conclusively show that four years is excessive.

Educational Substitution (Statutory Cap)

To recognize formal technical training, the statute permits credited technical training to offset part of the required experience:

$\text{Maximum Credited Technical Training} = 2 \text{ Years of the Required } 4$

• Technical training in an accredited college or university, or in a manufacturer's accredited training program, may be substituted for a portion of the experience.
• In no case may credited technical training exceed 2 years of the required 4 years' experience.

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2. The Qualifying Party (QP): Legal Status & Supervisory Duties

Under A.R.S. § 32-1122 and A.R.S. § 32-1127, a contractor license is issued to a business entity (sole proprietorship, partnership, limited liability company, or corporation) through a designated individual known as the Qualifying Party (QP).

Legal Relationship to the Licensee

The Qualifying Party must have an active legal ownership or employment status with the licensee. The QP must be:

1. A sole proprietor,
2. A general partner in a partnership,
3. A member or manager of a limited liability company (LLC),
4. An officer of a corporation, OR
5. A bona fide employee of the licensee who is regularly employed and receives W-2 wages.

Mandatory Active Supervision

Under A.R.S. § 32-1127, the Qualifying Party is legally responsible for exercising direct supervision and control over the construction operations. This duty encompasses:

• Ensuring that all HVAC/R installations comply with adopted municipal and state building codes (IMC, IFGC, NEC, IRC).
• Ensuring that work is performed in accordance with manufacturer specifications and plans.
• Supervising job site foremen, journeymen, and apprentices to maintain minimum workmanship standards.
• Directly managing permit applications, mechanical inspections, and customer job completion.

[!CAUTION] Prohibition Against "Figurehead" or "Renting" a License: A Qualifying Party who acts as a mere figurehead without actively supervising day-to-day contracting operations exposes the licensee to discipline under A.R.S. § 32-1154, and under § 32-1162(B) the QP is responsible for the licensee's violations for licensure regulatory purposes (that subsection expressly does not create personal civil liability). Under A.R.S. § 32-1127(A) a QP may act in a qualifying capacity for one additional licensee only where there is common ownership of at least 25% of each licensed entity, or where one licensee is a subsidiary (at least 25% owned) of the other.

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3. Examination Requirements

To qualify for an Arizona HVAC/R license, the designated Qualifying Party must successfully complete two distinct examinations unless an explicit statutory exam waiver applies:

                             QUALIFYING PARTY EXAMINATIONS
                                           │
                   ┌───────────────────────┴───────────────────────┐
                   ▼                                               ▼
        PSI Trade Examination                          GMetrix SRE Examination
      (HVAC/R Technical Knowledge)                   (Statutes and Rules Exam)
                   │                                               │
     • 80 Multiple-Choice Questions                  • Arizona Contractor Law
     • 210 Minutes (3.5 Hours)                       • A.R.S. Title 32, Chapter 10
     • 70% Passing Score (56/80)                     • Prompt Pay, Liens, Safety
     • 2018 IMC / 2018 IFGC / 29 CFR 1926 only       • Open-Book, Online Only ($61)
     • $66 fee; 30-day retake wait                   • Provided by AZ ROC via GMetrix

1. PSI Technical Trade Examination — "R-39R/C-39 (CR-39) Air Conditioning and Refrigeration (Residential/Commercial)":
   • Format: 80 multiple-choice questions, delivered at a PSI test center (Flagstaff, Glendale, Phoenix, Tempe, Tucson, or any PSI center nationwide) or by remote proctor.
   • Time Limit: 210 minutes (3.5 hours).
   • Passing Threshold: 70% (a minimum of 56 correct answers out of 80). A small number (5 to 10) of unscored experimental items may be added and do count against the clock.
   • Fee & Retakes: $66 for one examination ($116 for two; $40 for the solar portion alone). Candidates must wait 30 days before retaking a failed exam, are allowed 3 attempts, and must then wait 90 days between further attempts.
   • Open-Reference Rule: The content outline permits only the listed references in the testing room — 29 CFR Part 1926 (OSHA), the 2018 International Fuel Gas Code, and the 2018 International Mechanical Code. Modern Refrigeration and Air Conditioning, Low Pressure Boilers, ACCA Manual D and the ACCA Ductulator are listed as study references that are not allowed in the examination center. References may be highlighted, annotated and permanently tabbed before the session, never during it.
   • Content: The outline is 12 weighted subject areas — Refrigeration (12 items), Air Conditioning (12), Warm Air Heating (12), Controls and Motors (8), Boilers (4), Ventilation (4), Evaporative Coolers (4), Fuel Piping Systems (5), Water Piping Systems (5), Steam/Hot/Chilled and Condensing Water (5), Testing, Balancing and Inspections (5), and Sizing and Estimating (4).
   • Solar Add-On: Applicants for the "Including Solar" classifications (R-39 residential, C-79 commercial, CR-79 dual) take the same 80-item exam plus a 30-question, 75-minute solar examination at 70%.
2. Arizona Statutes and Rules Training Course and Exam (SRE):
   • A computer-based, open-book training course and exam provided and maintained by AZ ROC and delivered online only through GMetrix. The fee is $61.
   • Covers Arizona contractor law: A.R.S. Title 32 Chapter 10, A.A.C. Title 4 Chapter 9, Prompt Pay, mechanic's liens, workmanship standards, recordkeeping and tax obligations.
   • Required for new license applicants who were not previously listed as the qualifying party on another Arizona contractor's license within the last five years.

[!IMPORTANT] Two-Year Score Window & Exam Waivers: Under A.R.S. § 32-1122(B)(2) the written examination must have been taken not more than two years before the application. Under § 32-1122(F) the Registrar shall waive the examination requirement where its records show the qualifying party is currently, or previously was, a qualifying party for an Arizona licensee in the same classification within the preceding five years.

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4. Qualifying Party Disassociation & Replacement Timeline

When a Qualifying Party resigns, is terminated, sells their ownership interest, or passes away, strict statutory deadlines are triggered under A.R.S. § 32-1127.01 (and, as a ground for discipline, A.R.S. § 32-1154(A)(18)) to prevent an entity from operating indefinitely without a qualified technical supervisor.

The Statutory 15-Day / 60-Day Timeline

   Day 0                   Day 15                                      Day 60
     │                       │                                           │
     ├───────────────────────┼───────────────────────────────────────────┤
     │                       │                                           │
QP Leaves /             ROC Must Receive                            Replacement QP Must Be
Disassociates          Written Notice from                          Approved by ROC, or License
                      Licensee & Former QP                        SUSPENDED BY OPERATION OF LAW

• 15 Calendar Days (Written Notice): Both the licensed business entity and the departing Qualifying Party must provide written notice to the Registrar within 15 calendar days of the disassociation.
• 60 Calendar Days (Replacement Period): The licensee is granted 60 calendar days from the date of disassociation to qualify and install an approved replacement Qualifying Party who satisfies experience requirements and has passed (or waived) the examinations.
• Automatic Suspension by Operation of Law: A.R.S. § 32-1127.01(C) provides that if the licensee fails to requalify through another person within 60 days, the license is automatically suspended by operation of law at the end of that period until the licensee qualifies through another person. Operating during this suspension is contracting without a license.
• Separate Disciplinary Exposure: Failing to give the 15-day written notice is independently a ground for suspension or revocation under A.R.S. § 32-1154(A)(18), and contracting or bidding while the license is suspended is a § 32-1154(A)(17) violation carrying a civil penalty of up to $1,000 per violation.

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5. Background Checks, Citizenship & Statutory Disqualifications

Under A.R.S. § 41-1080 and A.R.S. § 32-1122, all license applicants, officers, members, partners, and Qualifying Parties must submit to comprehensive background verification:

• Lawful Presence Verification (A.R.S. § 41-1080): Applicants must submit government-issued proof of United States citizenship, lawful permanent residency, or authorized alien work status.
• Criminal Background Check & Fingerprinting: Mandatory submission of fingerprints through the Arizona Department of Public Safety (DPS) and the FBI.
• Mandatory Disclosure: Applicants must disclose any felony or misdemeanor convictions, active bankruptcy proceedings, prior contractor license suspensions/revocations in any state, or prior unlicensed contracting citations within the preceding 5 years.