2 CCR 402-14
DEPARTMENT OF NATURAL RESOURCES RULES AND REGULATIONS FOR ADMINISTRATION OF LICENSING, FINANCIAL RESPONSIBILITY, CONTINUING EDUCATION AND REMEDIAL ACTION FOR WELL CONSTRUCTION AND PUMP INSTALLATION CONTRACTORS 2 CCR 402-14 [Editor’s Notes follow the text of the rules at the end of this CCR Document.] _________________________________________________________________________ Rule 1. Title 1.1 The title of these rules and regulations is “Rules and Regulations For Administration Of Licensing, Financial Responsibility, Continuing Education And Remedial Action For Well Construction And Pump Installation Contractors”. The short title for these rules and regulations is “BOE Administration Rules,” and they may be referred to herein collectively as the “Rules” or individually as a “Rule.”
Rule 2. Authority 2.1 These Rules are promulgated pursuant to the authority granted to the State Board of Examiners of Water Well Construction and Pump Installation Contractors (“Board” or “Board of Examiners”) in section 37-91-104(1)(c), C.R.S. (2017), that authorizes the Board to adopt and revise rules, not inconsistent with law, as may be necessary to effectuate the provisions of Article 91 of Title 37, C.R.S. (2017).
2.2 These Rules also provide for alternatives to surety bonds needed to obtain a license pursuant to sections 11-35-101(2) and 101.5(2), C.R.S. (2017).
Rule 3. Scope and Purpose of the Rules 3.1 These Rules apply to licensing and license renewal, bonds and other forms of financial responsibility, continuing education requirements, and remedial and disciplinary actions of the Board.
3.2 These Rules further define the requirements for obtaining and keeping a license or a special license to be a well construction contractor and/or pump installation contractor. These Rules also address evidence of financial responsibility by contractors as required by section 37-91-107, C.R.S. (2017), the resolution of claims against such evidence of financial responsibility, and the conditions for the release of funds from such evidence of financial responsibility when a contractor uses an alternative to a compliance bond.
3.3 The purpose of these Rules is:
Rule 4. Definitions 4.1 Statutory Definitions – Certain terms used in these Rules have the identical meaning as provided in section 37-91-102, C.R.S. (2017), as quoted and cited in Rule 4.2.
4.2 Specific Definitions – Unless expressly stated otherwise, the following terms when used in these Rules have the meaning indicated in this Rule. Words in the singular include the plural. Words used in the masculine gender include the feminine and neuter.
4.3 Other Definitions – All other words used herein are given their usual, customary, and accepted meaning. Terms not defined in this Rule that are defined in the statutes, the Water Well Construction Rules (2 CCR 402-2), or in rules of the State Engineer must use the meaning given therein. All words of a technical nature specific to the water well industry are given the meaning generally accepted in said industry.
Rule 5. General Rules Rule 5.1 License Number –
or, d. In the case of a former contractor who is deceased, the person requesting the license number must submit a signed affidavit:
5.2 Advertisement - All advertisements for services offered by licensed contractors, including internet pages, social media, vehicles, mobile equipment, billboards, business cards, advertising in newspapers, telephone directories, and trade journals, must state the contractor’s license number. Standard listings consisting of the company name, address, and phone number such as in phone books, chamber of commerce business listings, data aggregator websites, and similar community publications are not considered advertisements, unless the listing mentions services not licensed to be performed by the company placing such advertisement. Any advertisement for services for which the company or individual is not licensed is a violation of section 37-91-111, C.R.S. (2017).
5.3 License Application and Renewal Fee - When applying for a new license, the applicant must pay the application fee required in section 37-91-107, at the time the application is requested. Thereafter, the fee to renew a license must be remitted with the renewal application and the associated documents required to maintain the license.
Rule 6. Licensing and License Renewal 6.1 License Required - Every individual, before engaging in the business of contracting for and performing either the construction and/or the repair of wells, the installation and/or repair of pumping equipment, or the installation and/or repair of cisterns connected to water well supply systems, must obtain a license for one or more methods of well construction or pump installation from the Board. Individuals who use special equipment or perform limited procedures in well construction, pump installation, or cistern installation must obtain a special license from the Board prior to engaging in such specialized services.
6.2 Water Well Construction Licenses - The Board designates the following types of licenses for methods of water well construction:
6.3 Pump Installation Licenses - The Board designates the following types of licenses for the installation of pumping equipment in water wells:
6.4 License Application - An applicant for a well construction or pump installation contractor’s license must specify to the Board the methods of well construction or pump installation for which the applicant is seeking a license. Once licensed in one of the above methods of water well construction, an applicant is eligible without further experience to take an examination for another listed method of well construction. Once licensed in one of the above categories of pump installation, an applicant is eligible without further experience to take an examination for another listed category of pump installation.
6.5 Special License – The Board may issue a special license for well construction or pump installation methods other than those listed in Rules 6.2 and 6.3 or to perform specialized work on wells. Such license will specify the limited work allowed to be performed (e.g., monitoring well or hole construction, infiltration gallery or gallery-type well construction, installation of cylinder pumps, formation fracturing, cistern installation, etc.).
6.6 Examination - An applicant for a license must demonstrate professional competence by passing the written and oral examinations prescribed by the Board. The written examination(s) will test an applicant’s technical knowledge of drilling and/or pump installation methods and knowledge of applicable state laws concerning the construction of wells or the installation of pumping equipment, or both, and rules promulgated in connection therewith.
6.7 Private Driller and Private Pump Installer - The statutes provide an exemption from licensing provisions for a “private driller” (section 37-91-102(12)) and “private pump installer” (section 37- 91-102(12.5)).
6.8 License renewal – Licensed contractors must renew their license annually or may elect to renew at two or three-year intervals. The license renewal fee for a license issued for a two-year period will be twice the annual fee amount. The license renewal fee for a license issued for a three-year period will be three times the annual fee amount. All renewal fees must be paid at the time of license renewal for the duration of the license.
7.1 Evidence of Financial Responsibility Required - Prior to the initial issuance or renewal of any license, the applicant or licensee must file with the Board, on a form provided by the Board, evidence of financial responsibility by means of a corporate surety bond or alternative funds as provided for by section 37-91-107. The license automatically lapses if the bond is cancelled or terminated, or if the alternative funds are less than the required amount.
7.2 Corporate Surety Bonds - The bond must specifically cover the licensee's compliance with applicable laws and regulations governing the activities for which the individual is licensed. The bond and any subsequent renewal certificate must specifically identify the individual covered by that bond and also state the type of license or licenses held by the individual.
7.3 Alternative Funds - The requirement for financial responsibility may be satisfied by a savings account, deposit, or a certificate of deposit or an irrevocable letter of credit meeting the requirements of sections 11-35-101.5 and 37-91-107. Irrevocable letters of credit must be completed on a form available from the Board. The name and types of licenses held by the individual under the alternative funds must be provided to the Board when first submitted and thereafter with the application for license renewal. These funds must specifically cover the licensee’s compliance with applicable laws and regulations governing the activities for which the individual is licensed.
7.4 Period of Liability - The period of liability of a bond is two (2) years after the submission of the last accepted work report. The period of liability for alternative funds provided as evidence of financial responsibility is two (2) years after the expiration, surrender, revocation, or suspension of the license. In the event the alternative funds are replaced by a bond, the period of liability, during which time the alternative funds will be held by the Board, will be two (2) years from the date the new form of financial responsibility becomes effective.
8.1 Every contractor who is licensed by the Board to contract for the construction of water wells and/or for the installation of pumping equipment and cisterns, or who holds a special license from the Board must complete, annually:
8.2 Program or Course Accreditation - The Board, in conjunction with the CE Committee, designates the following general criteria for evaluating a continuing education training program or course for accreditation:
8.3 Reporting – It is the responsibility of every licensee to submit annually a Certificate of Completion of continuing education training to the Board for license renewal or to maintain a license. The licensee is responsible for maintaining records of his/her attendance at accredited continuing education training and must provide the records to the Board upon request.
Rule 9. Remedial and Disciplinary Action 9.1 To carry out the provisions of Article 91 of Title 37 and its obligation to protect the health and welfare of the people of the State of Colorado and its water resources, the Board is vested with the statutory authority to impose fines, issue orders, and suspend, deny, or revoke licenses (see sections 37-91-104(1)(l) & 37-91-108 & 109(1), C.R.S. (2017)).
9.2 Remedial Action – The Board may order remedial action when the condition of a well renders the structure a potential hazard to the public health or the groundwater resources of the state. Such actions are intended to correct a well defect or deficiency, as required by sections 37-91-104 & 37-91-110, C.R.S. (2017). The Board may assess a penalty and require remedial actions, including, but not limited to, nondestructive investigation, abandonment, repair, drilling, re-drilling, casing, re-casing, deepening, and excavation of wells.
9.3 Nondestructive Investigation – In order to protect the public health and the groundwater resources of the state, the Board may order a licensed contractor, private driller, private pump installer, or owner of a well to conduct, or to arrange to have conducted, a non-destructive investigation of a well. Such investigations may include, but are not limited to, pumping tests, photographs, down-hole video, water quality/chemistry analysis, geophysical and/or sonic/cement bond logs, and sounding (depth) measurements.
9.4 Abandonment, Repair, Drilling, Re-drilling, Casing, Re-casing, Deepening, and Excavation - In order to protect the public health and the groundwater resources of the state, the Board may order a licensed contractor to remedy a construction defect or deficiency, or to perform or arrange to perform abandonment, repair, drilling, re-drilling, casing, re-casing, deepening, or excavation of any well constructed by or under the direction or supervision of the contractor. The Board may also order any private driller or owner of a well to have a well abandoned, repaired, re-drilling, cased, re-cased, deepened, or excavated to correct a noncompliant condition, or to remedy a construction or maintenance defect or deficiency.
9.5 Disciplinary Action and Penalties - The Board may withhold, suspend, or revoke a license and may impose fines of not less than fifty dollars ($50) nor more than one thousand dollars ($1,000) for each violation of Articles 90 and 91 of Title 37, and the Board’s rules promulgated pursuant to Article 91, Title 37. § 37-91-108(5), C.R.S. A disciplinary action and/or penalty will be imposed only after proper notice and a hearing before the Board.
10.1 General – Pursuant to section 24-4-105(11), C.R.S., this Rule provides procedures for the Board’s entertaining of petitions for declaratory orders to terminate controversies or to remove uncertainties as to the applicability to the petitioner of any statutory provision or of any rule or order of the agency. The order disposing of the petition constitutes agency action subject to judicial review. The Board retains the right to determine, in its sound discretion, whether to entertain any such petition submitted pursuant to this Rule. See § 24-4-105(11), C.R.S.
10.2 Petition for Statement of Position – Any person may petition the Board Staff for a statement of position concerning the applicability to the petitioner of any provision of these BOE Administrative Rules, or any regulation of the Board. The Board Staff shall respond with a written statement of position within 30 days of receiving a proper petition.
10.3 Petition for Declaratory Order – Any person who has properly petitioned for a statement of position, and who is dissatisfied with the statement of position, or who has not received a response within 30 days of the petition, may petition the Board for a declaratory order pursuant to section 24-4-105(11), C.R.S. Such petition must be submitted to Board Staff within 30 days of the date of the written statement of position. A petition for declaratory order must include the following:
10.4 Board’s Exercise of Its Discretion to Entertain a Petition – The Board will determine, in its discretion and with no prior notice to the petitioner, whether to entertain any petition. If the Board decides it will not entertain a petition, it shall promptly notify the petitioner in writing of its decision and the reasons for that decision. Any of the following grounds are sufficient reason to refuse to entertain a petition:
10.5 If the Board Entertains a Petition – If the Board determines that it will entertain the petition for declaratory order, it must notify the petitioner within 30 days of making such determination, and the following procedures will apply:
10.6 Records of Petitions and Declaratory Orders – Files of all petitions, requests, statements of position, and declaratory orders will be maintained by the Board. Such files will be available for public inspection, except for any material required by law to be kept confidential. The Board will post a copy of all statements of position and declaratory orders constituting Final Agency Action on the Board’s web site.
Rule 11. Severability If any portion of these Rules is found to be invalid, the remaining portion of the Rules will remain in force and unaffected.
Rule 12. Revisions The Board may revise these Rules in accordance with section 24-4-103, C.R.S. (2017). Rule 13. Effective Date These Rules will become effective January 1, 2018.
Rule 14. Statement of Basis and Purpose The Statement of Basis and Purpose for these Rules is incorporated herein by this reference. STATEMENT OF BASIS AND PURPOSE This Statement of Basis and Purpose describes the basis and purpose of each rule and modifications to the “Rules and Regulations For Administration Of Licensing, Financial Responsibility, Continuing Education And Remedial Action For Well Construction And Pump Installation Contractors” (“BOE Administration Rules” or “Rules”).
The specific statutory authority for the promulgation and modifications to the BOE Administration Rules is found under section 37-91-104(1)(c), C.R.S. (2017), which provides that the Board of Examiners of Water Well Construction and Pump Installation Contractors (“Board” or “BOE”) shall, “Adopt, and from time to time revise, such rules, not inconsistent with law, as may be necessary to effectuate the provisions of this article, all such rules to be adopted in accordance with article 4 of title 24, C.R.S.” Where appropriate, additional statutory authority for specific rules is identified. Rule 1. Title The BOE Administration Rules are titled to reflect the implementation of administrative and quasi-judicial responsibilities of the Board as authorized in Article 91 of Title 37 of the Colorado Revised Statutes, (2017). The phrase “for Well Construction and Pump Installation Contractors” was added to the title to clarify the scope of the Rules.
Rule 2. Authority This Rule cites 37-91-104(1)(c), C.R.S. (2017) as the specific statutory authority for the Board to promulgate and revise the BOE Administration Rules, and related statutory provisions providing for alternatives to surety bonds needed to obtain a license. Rule 3. Scope and Purpose of the Rules This Rule expresses the scope and purpose of the BOE Administration Rules. The BOE Administration Rules apply to licensing and license renewal, bonds and other forms of financial responsibility, continuing education requirements, and remedial and disciplinary actions of the Board. The Rules define the requirements for obtaining and keeping a license or a special license to be a well construction contractor and/or pump installation contractor. The Rules also address evidence of financial responsibility by contractors as required by section 37-91-107, C.R.S. (2017), the resolution of claims against such evidence of financial responsibility, and the conditions for the release of funds from such evidence of financial responsibility when a contractor uses an alternative to a compliance bond. The purpose of the Rules is to enable to Board to implement the provisions of Article 91 of Title 37, including to set standards for licensing and license renewals, evidence of financial responsibility, and continuing education requirements, and to establish a procedure for remedial and disciplinary actions. Previous Rule 3.3.2 was removed to comply with Senate Bill 05-161, which eliminated the examination requirement for private drillers and private pump installers (§37-91-106(3), C.R.S. (2017))”. Rule 4. Definitions This Rule defines terms used in the BOE Administration Rules. Certain terms defined in statute, section 37-91-102, C.R.S. (2017), have identical meanings in Rule 4.2, and are restated verbatim. Many of the added definitions are simply adding the statutory definition. This Rule also defines additional terms to ensure that their meanings and usage are clearly understood. The definition of “Authorized Individual” was removed because the term was not used in the Rules. A definition for “Board Staff” was added to clarify the term, especially in regard to the process for petitions for declaratory orders added under Rule 10.
A definition for “Continuing Education (CE) Committee” was added to specify the composition of the committee who, in conjunction with the Board, would evaluate continuing education programs or courses for accreditation under Rule 8. Section 37-91-108(6), C.R.S. (2017), provides that “The board shall...develop a continuing education program in conjunction with the Colorado Water Well Contractors Association or any analogous or successor organization.” Rule 4.2.18.1 was added to clarify that the definition of “Pumping Equipment” also includes certain cisterns or other water storage tanks. Section 37-91-109(2), C.R.S. (2017), provides that, “Only a licensed pump installation contractor may install a cistern or other water storage tank between the wellhead and the pressure tank or downstream of the wellhead if no pressure tank is utilized.” The definition of “Two Years’ Experience” was removed because the requirement of two years of experience in order to be licensed is adequately described under Rule 6.4.1. Rule 5. General Rules The statutory authority for this Rule is found under sections 37-91-104(1), 105(1), 107, and 111(1)(b), C.R.S. (2017).
Rule 5.1.1 requires the registration of certain rigs with the Board and the display of the contractor’s license number on the rig. The Rule provides field personnel and the public the means to identify the licensee responsible for work being conducted using the equipment. The Rule was modified to require that each rig contain a copy of the Water Well Construction Rules. This will ensure the personnel on site have the ability to refer to the Rules if the licensed contractor is not on site. This Rule assists the Board’s staff and State Engineer personnel in enforcing the licensing provisions of Article 91 of Title 37 and these Rules.
Rule 5.1.2 was added to outline the process for the reissuance or transfer of a retired license number. The Board determined that record maintenance, bond issuance, or contractor identification will not be adversely impacted if retired license numbers are reused. The Rule is adapted from BOE Policy 2000-2. Under section 37-91-104(1)(e), C.R.S. (2017), the Board has general authority regarding well construction and pump installation licenses.
Rule 5.2 establishes a requirement for inclusion of the contractor’s license number when advertising to provide services, and differentiates between media sources considered to be utilized for advertising and those that are not. The Rule was modified to clarify that social media would be considered an advertisement, while data aggregator websites would not. The Rule also makes clear that it is a violation of section 37-91-111, C.R.S. (2017), to advertise to perform well construction or pump installation services for which a contractor is not licensed. This Rule is developed to assist the Board and its staff in enforcing the licensing provisions of Article 91 of Title 37 and to identify persons who may be illegally performing well construction and/or pump installation services without a license. Rule 5.3 specifies when license application and renewal fees are due. To ensure that staff time is adequately compensated for processing and sending out the license application and renewal forms, the Board has determined that the new license application fee must be submitted at the time the application is requested, and that that renewal fee must be submitted with the renewal application. Rule 6. Licensing and License Renewal The statutory authority for this Rule is found under sections 37-91-104(1), 105, 106, 107, and 110(2), C.R.S. (2017).
Rule 6.1 implements the provisions of section 37-91-105, C.R.S. (2017), that require obtaining a license from the Board prior to contracting for the construction of water wells and/or the installation of pumping equipment or cisterns. The Rule also provides for obtaining a special license when a person intends to conduct specialized services attendant to the construction, repair, modification, or enhancement of a well or to the installation of pumping equipment installed in a water well. Rules 6.1.1 and 6.1.2 require the contractor to submit his or her contact information to the Board. These Rules were modified to require a primary email address for each licensed contractor, as most of the correspondence from the Division of Water Resources or the Board will be sent via email. Rule 6.1.3 requires the licensee to identify employees who conduct work under the authority of the contractor’s license. The Rule was adopted to enable the Board and its staff to keep accurate records regarding drillers and/or pump installers who are directly employed by the licensed contractor and who perform services under the license. Such records are helpful to determine if work performed by an unlicensed person was legally conducted under the authority of a contractor’s license and as verification of two years’ experience for a license application. The Rule was modified to include a requirement that the licensee also submit the areas of proficiency of the listed employees. Rules 6.1.3.1 and 6.1.3.2 were also added to effectuate this Rule change. Under section 37-91-110(2), C.R.S. (2017), the Board has the authority to require the filing of information and reports relating to the construction or abandonment of wells and the installation of pumping equipment whenever it may deem such action to be necessary and to enact rules necessary to ensure the proper construction or abandonment of wells and the proper installation of pumping equipment. Under section 37-91-104(1)(c) and (e), C.R.S. (2017), the Board also has general authority to promulgate rules necessary to effectuate the provisions of Article 91, Title 37, which include requirements for license approval and renewal. Rule 6.1.3.1 was added to direct the licensee to maintain a list of employees and the employees’ areas of proficiency. This “real-time” list will help Division of Water Resources field personnel identify who is employed by a licensed contractor and will help determine if there are any illicit contractual relationships. Rule 6.1.3.2 was added to supply information to the Board of Examiners regarding the continuing education of individuals conducting well construction or pump installation under a license. Field training or in-shop training given by the licensed contractor can be catalogued per this rule. Rule 6.1.4 specifies the extent and limit of a contractor’s license and clearly states that a license does not authorize advertising for, contracting to provide, or performance of services other than those specifically stated on the license. This Rule intends to eliminate an inappropriate practice of advertising and contracting to provide a service for which a person is not licensed and then subsequently subcontracting the service to another licensed contractor. Such practice effectively severs the direct contact and interaction between a well owner and the licensed contractor who is ultimately responsible for the work and compliance with established minimum construction standards. Rule 6.1.5 was added to clarify that agreements that purportedly authorize unlicensed individuals to construct water wells or install pumping equipment under the license of another are prohibited. The Rule also states the limited exceptions under statute where an unlicensed individual can legally construct a well or install pumping equipment. Section 37-91-111, C.R.S. (2017), makes it unlawful for a person to construct water wells or install pumping equipment without a Board-issued license, unless one of three exceptions apply: 1) the person is a “private driller” (as defined under section 102(12)); 2) the person is “directly employed” (as defined under section 102(4.7)) by a licensed contractor; or 3) the person is under the “supervision” (as defined under section 102(15.5)) of a licensed contractor. An individual who forms a contractual business relationship with a licensed contractor is not “directly employed” by that licensed individual. An unlicensed individual who is not directly employed by a licensed contractor is allowed to work on water wells or pumps only if the licensed contractor personally and continuously directs the on- site work by the unlicensed individual. The Rule was adapted from BOE Policy 2015-1. Rule 6.2 defines four different types of licenses for water well construction. Section 37-91-105, C.R.S. (2017), authorizes the Board to examine for and grant licenses for different methods of well construction. The types of methods of well construction represent the common methods now used in Colorado to construct water wells. These construction methods are recognized and tested for by the National Ground Water Association (NGWA), an organization representing the industry throughout the United States and internationally. This uniformity with the NGWA tests allows the Board to use the NGWA tests in its license examination procedures.
Rule 6.2.1 was added to clarify that licensed water well construction contractors can install gallery wells/infiltration galleries without additional examinations or a special license. The Rule is adapted from BOE Policy 2000-3. Section 37-91-105, C.R.S. (2017), authorizes the Board to examine for and grant licenses for different methods of well construction. Gallery wells/infiltration galleries are not included within any of the Board’s designated methods of well construction. However, all contractors licensed in one or more of the designated methods of well construction are expected to be familiar with the standard for materials required for well construction, the precautions that must be taken to reduce the potential for contamination of near-surface sources of water, and the necessity of proper disinfection of the well after its construction. Accordingly, a well construction contractor who has the qualifications necessary to be licensed under any of the designated methods will also be qualified to construct gallery-type wells and spring wells.
Rule 6.3 uses the same two types of licenses for installation of pumping equipment as those used in the examinations administered by the NGWA. The categories are based on the rate (in gallons per minute) that water can be produced by a pumping system. A license for the installation of line shaft turbine pumps can be obtained by successfully completing the NGWA test that includes those types of pumps and by meeting the additional requirements for licensing set forth in statute and established the Board. Rule 6.3.1 was added to clarify that a pump installation contractor is qualified to install cisterns connected to water well supply systems. Section 37-91-109(2), C.R.S. (2017), requires a pump installation license to install these cisterns.
Rule 6.4 explains the license application process as authorized by section 37-91-105, C.R.S. (2017). Rule 6.4.1 clarifies that the requirement of at least two years of experience in the type of well construction or pump installation work for which an applicant has applied for a license means actual construction of wells or installation of pumping equipment by operating a well drilling or pump installation rig and performance of other tasks related to well construction or pump installation. Section 37-91-105(2)(d), C.R.S. (2017), requires that an applicant for a well construction or pump installation license have two years' experience in the type of well construction work or pump installation work for which the applicant is initially applying for a license. The Rule was modified to clarify the two years’ experience requirement and that experience installing pumping equipment or constructing water wells in the military can be considered active experience.
Rule 6.4.2 identifies the type of information the Board may request as documentation of the required experience. Such information is often needed to verify and more fully evaluate an applicant’s experience in the specific method of well construction or pump installation for which the person is requesting a license. The Rule was modified to specify that information provided under Rule 6.1.3, which provides a mechanism for an individual to track active experience and requires the licensed contractor to document such experience of his/her employees, can be considered by the Board as active experience. Rule 6.4.3 implements section 37-91-105(2)(d)(III), C.R.S. (2017), which authorizes the Board to accept completion of approved educational programs as a portion of the two years of experience in well construction and/or pump installation required for applicants to obtain a license. The Rule sets forth conditions under which the Board may accept the educational experience as a substitute for a portion of the required work experience.
Rule 6.4.4 establishes a two-year period of time in which an applicant must complete the application and examination process for obtaining a license.
Rule 6.5 and its subsections set forth the procedures and conditions for obtaining a special license, as authorized by section 37-91-105(2.5), C.R.S. (2017). Special licenses are granted for the use of special equipment or limited procedures in well construction or pump installation. An applicant for a special license must meet the requirements of section 37-91-105(2), C.R.S. (2017). Due to the limited nature of a special license, if a special licensee applies for a well construction or pump installation license, the applicant must demonstrate two years of experience in the method of well construction or pump installation for which that person is applying for a license. A licensed contractor does not need to obtain a special license for work that falls within the scope of the general well construction or pump installation license issued by the Board. A special license limits the scope of work of the licensee to the specific task or tasks stated on the license.
Rule 6.6 implements the exam requirements of section 37-91-105(5), C.R.S. (2017), to ensure that licensed contractors possess adequate knowledge of the technical aspects of well construction and/or pump installation and of the laws and rules that apply to well construction and/or pump installation. Rule 6.6.1 limits the validity of exam results to two years. This ensures that an applicant completes the licensing process within two years, and therefore that a newly licensed contractor possesses knowledge of current technology, laws, and rules.
Rules 6.7.1 and 6.7.2 were removed to comply with Senate Bill 05-161, which eliminated the examination requirement for private drillers and private pump installers. Section 37-91-106(3), C.R.S. (2017), now reads, “Private drillers and private pump installers are exempt from all license requirements under this article; except that such entities shall be required to comply with minimum construction standards as required by section 37-91-110 and the rules of the board.” Rule 6.7.1 (previously Rule 6.7.3) directs that all work performed by a private driller and private pump installer must comply with the standards of the Water Well Construction Rules and all other applicable regulations.
Rule 6.8 addresses license renewal and implements section 37-91-107(4), C.R.S. (2017), authorizing the Board to renew a contractor’s license for a period of up to three years. The Rule specifies the fee requirement is commensurate with the duration of the license renewal period. Rule 6.8.1 directs that the period of the bond or other financial responsibility is the same as the period of license renewal.
Rule 6.8.2 implements the provisions of section 37-91-105(7), C.R.S. (2017), which require each licensed contractor to complete eight hours of approved continuing education training during each calendar year in order to renew a license. The Rule provides for submittal of a “certificate of completion” to the Board affirming that the continuing education requirement has been fulfilled. The Rule specifies that the deadline for submitting the certificate is January 15 of each year and explains that the license of a contractor who fails to submit the certification annually will lapse regardless of the duration for which the license was renewed. January 15 is used as the annual deadline in order to provide sufficient time for renewal processing prior to the license lapse date of February 1. Rule 6.8.2.1 explains the procedure for reinstatement of a license that is lapsed pursuant to section 37- 91-107(4), C.R.S. (2017), because a contractor has failed to fulfill the continuing education training requirement or to file the required certificate of completion. The Rule provides for payment of a reinstatement fee, which is currently set by statute in the amount of $100. The Rule specifies that any continuing education training acquired after the fifteenth of January used to fulfill the previous year’s obligation cannot be applied to the eight-hour requirement for the current calendar year. Rule 7. Financial Responsibility The statutory authority for this Rule is found under sections 11-35-101 and 101.5 and 37-91-107, C.R.S. (2017).
Rule 7 clarifies how a contractor may fulfill the financial responsibility requirement and how to file a claim against a bond or alternative funds. Section 37-91-107, C.R.S. (2017) requires a licensee to provide evidence of financial responsibility in the form of an approved compliance bond with a corporate surety authorized to do business in the state of Colorado, or in the form of alternative funds such as a savings account, deposit, certificate of deposit, or irrevocable letter of credit. A contractor’s failure to maintain the statutorily required amount of financial responsibility will result in the lapse of that contractor’s license. Rule 7.2 describes the required coverage of a corporate surety bond and the information that must be listed on the bond. The bond must be a compliance bond that covers the licensee’s compliance with all applicable laws and regulations that apply to the activity authorized by the license, including the Water Well Construction Rules and these Rules. Rule 7.2.3 addresses filing a claim against a bond, and Rule 7.2.4 charges the contractor with responsibility for notifying the Board of any change in or cancellation of a bond. Rule 7.2.1 was modified to raise in-state bonds to $20,000 in order to account for inflation and the rising costs of materials and labor. The Board is authorized under section 37-91-107(3.7), C.R.S. (2017), to increase the required bond amounts higher than the statutory minimums if such an increase becomes necessary to further the purposes of Article 91 of Title 37. Rules 7.3 and 7.3.1 explain how a contractor may fulfill the requirement of financial responsibility through alternative funds. Rule 7.3.2 imposes responsibility on the contractor for costs incurred by the Board in maintaining and administering such funds, including the costs of negotiation or litigation of claims. Rule 7.3.3 addresses filing a claim against alternative funds and sets forth the conditions under which the Board will make payments from the alternative funds. The Board will not release any alternative funds without a written and notarized agreement of the parties that the Board may do so in a specified amount, or a court order directing the Board to pay a party a specified amount from the alternative funds. Rule 7.4 establishes periods of liability of both bonds and alternative funds. The two-year periods are based upon the time limitations for initiating a hearing on a complaint as set forth in Section 37-91-108, C.R.S. (2017). Because a complaint may have been filed before the date the liability period ends, but not yet resolved by that date, this Rule authorizes the Board to retain the alternative funds until the complaint is resolved.
Rule 8. Continuing Education The statutory authority for this Rule is found under sections 37-91-104(1), 105(7), and 107(6), C.R.S. (2017).
Rule 8.1 implements the continuing education requirement established in section 37-91-105(7), C.R.S. (2017). Eight hours of approved continuing education training must be obtained during each calendar year for license renewal. The Rule was modified to incorporate BOE Policy 2005-1, which limits the annual number of continuing education hours that can be obtained by internet or online participation and from safety, CPR, First Aid, or other safety-related training. This Rule encourages diversity in the areas of continuing education and limits the redundancy of safety-related training. Rule 8.1.1 was modified to incorporate BOE Policies 2007-1 and 2009-1 to provide consistency in evaluating the fulfillment of the continuing education requirement. The Rule specifies that only training obtained during the applicable calendar year is eligible for the continuing education obligation for license renewal, and that training in excess of the required eight hours cannot be applied to the obligation for the following year.
Rule 8.2 and its subsections establish criteria for accreditation of training courses and programs in accordance with section 37-91-107(6), C.R.S. (2017). The Rule was modified to incorporate BOE Policy 2004-1 so that the Board will establish such accreditation in conjunction with the CE Committee, as defined under Rule 4.2.7, whose membership includes a designee from the Colorado Water Well Contractors Association. Subsections of Rule 8.2 designate general criteria for evaluating a continuing education training program or course for accreditation, provide standards for program or course sponsorship and instruction, and require the documentation of attendance. The subsections also provide for the determination of the number of eligible hours for an accredited course or program and a means of modifying the number of hours when necessary.
Rule 8.2.9 was added to specify that the CE Committee will not consider post-attendance requests for continuing education course accreditation. This Rule incorporates BOE Policy 2008-1. The purpose for the rule is so that prior approval of courses can be noticed and posted so that other contractors can attend, sponsor documentation and maintenance of attendance records can be demonstrated, and the Board can function more efficiently in evaluating continuing education accreditation requests. Rule 8.2.10 and its subsections were added to establish a process for awarding continuing education credit for preparing and presenting a continuing education course. The Rule incorporates BOE Policy 2007-2. The provides for consistency in evaluating fulfillment of continuing education requirements. Rule 8.3 addresses the Certificate of Completion required by section 37-91-107(4), C.R.S. (2017), and the contractor’s responsibility to maintain records of attendance at accredited continuing education training that is reported on the certificate. The Rule and its subsections implement the statutory requirement for annual submittal of the Certificate of Completion, specify the certificate will consist of a form prescribed by the Board, and advise that failure to submit the certificate by the fifteenth of January of each year for license renewal will result in lapse of the license. Rule 9. Remedial and Disciplinary Action The statutory authority for this Rule is found under sections 37-91-104(1), 108, and 109, C.R.S. (2017). Rule 9.1 references the statutes vesting the Board with authority to carry out its obligation to protect the public health and the groundwater resources of the state by ordering remedial action and/or the imposition of a disciplinary actions.
Rule 9.2 provides for the issuance of an order by the Board assessing penalties or requiring the correction of a defective well that poses a hazard to the public health or the groundwater resource. Such defects may occur by failure to employ approved materials to construct a well or install pumping equipment, or as a deficiency in the application of materials resulting in failure to meet minimum standards. Rule 9.2 was modified to remove the reference to a notice and hearing process before issuing such orders. To the extent notice and hearing is required impose a penalty, such a process is already stated in Rule 9.5.
Rule 9.3 implements a portion of sections 37-91-104(l)(1) and 108(4), C.R.S. (2017), which authorizes the Board to require a nondestructive investigation of a well be conducted by a contractor, private driller/private pump installer, or well owner. The Rule gives examples of the types of nondestructive techniques the Board may require. Rule 9.3 and subsection 9.3.1 were modified to remove a notice and hearing process before issuing an order for nondestructive investigation. Such a process is not required by statute, and interferes with the Board’s ability to correct violations of statutes and the Board’s rules, and to protect public health and the groundwater resource. Rule 9.3.1 provides that the Board may order a nondestructive investigation of a well based on evidence that a well is not properly constructed or maintained.
Rule 9.3.2 specifies that all work to complete a nondestructive investigation must be conducted in accordance with the terms and conditions of the order, including the submission of the results of the investigation. The Rule provides that noncompliance with terms and conditions of an order, or failure to fulfill the requirements of an order to conduct a nondestructive investigation, is considered to be a violation of these Rules. The purpose of the Rule is to enable the Board to pursue compliance with its order.
Rule 9.3.3 specifies that, in accordance with statutory requirements, only a licensed pump installation contractor or private pump installer can remove and reinstall pumping equipment when performing a nondestructive investigation.
Rule 9.3.4 requires the person ordered to conduct the nondestructive investigation pay all associated costs.
Rule 9.4 states the authority of the Board provided under section 37-91-108(4), C.R.S. (2017), to require abandonment, repair, drilling, re-drilling, casing, re-casing, deepening, or excavation of a well to protect public health or the groundwater resource.
Rule 9.4.1 explains that such an order of the Board must be based on evidence that a well is not properly constructed or maintained such that it is a potential hazard to the public health and/or the groundwater resource. Rule 9.4.1 was modified to remove a notice and hearing process before issuing such an order. Such a process is not required by statute, and interferes with the Board’s ability to correct violations of statutes and the Board’s rules, and to protect public health and the groundwater resource. Rule 9.4.2 specifies that all work to perform a corrective action must be performed in accordance with the terms and conditions of the order. The Rule provides that noncompliance with terms and conditions of an order, or failure to fulfill the requirements of an order, is considered to be a violation of these Rules. The purpose of the Rule is to enable the Board to pursue compliance with its order. Rule 9.4.3 specifies that, in accordance with statutory requirements, only a licensed water well construction contractor or private driller can perform corrective actions that include abandonment, repair, drilling, re-drilling, casing, re-casing, deepening, or excavation of a well. Rule 9.4.4 addresses assignment of responsibility for costs associated with performing a corrective action. The purpose of the Rule is to provide the Board some flexibility when assigning responsibility for such costs.
Rule 9.5 and its subsections implement the Board’s authority to take disciplinary action by withholding, suspending, or revoking a contractor’s license and imposing fines as provided in section 37-91-108. Such disciplinary actions may only be invoked after proper notice and hearing. Rule 9.5.1 allows the Board to accept a stipulated settlement that includes a provision for payment of a fine and provides for the establishment of a fine schedule to assist the Board in maintaining consistency in the imposition of fines.
Rule 9.5.2 specifies that all provisions of an order for disciplinary action must be complied with in accordance with the terms and conditions of the order. The Rule provides that noncompliance with terms and conditions of an order, or failure to fulfill the requirements of an order, is considered to be a violation of the BOE Administration Rules. The purpose of the Rule is to enable the Board to pursue compliance with its orders.
Rule 10. Petitions for Declaratory Orders The statutory authority for this rule is found in section 24-4-105(11), C.R.S. (2017). Rule 10 was added is to comply with the requirement of this statute and provide procedures for entertaining, in the Board’s discretion, any petitions for declaratory orders to terminate controversies or to remove uncertainties as to the applicability to the petitioners of any statutory provision or of any rule or order of the agency. Rule 11. Severability The purpose of this Rule is to clarify that each rule is independent of the others, so that if any one Rule is found to be invalid, the remainder will remain in effect. Rule 12. Revisions This Rule recognizes the ability of the Board to make any required changes, subject to the requirements of the State Administrative Procedure Act.
Rule 13. Effective Date The Rules will be effective January 1, 2018 and will be in full force and effect for the 2018 calendar year licensing renewal. If any contractor is in the middle of an extended license period, the contractor must update their financial responsibility under these Rules or the license will lapse. _________________________________________________________________________ Editor’s Notes History Entire rule eff. 06/01/2004.
Entire rule eff. 06/01/2004.
Entire rule eff. 01/01/2018.
Rule 8.1 d emer. rule eff. 05/18/2020; expired 09/15/2020. Rule 8.1 eff. 01/01/2021.