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REFERENCE TITLE: registrar of contractors; arbitration |
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State of Arizona Senate Fiftieth Legislature First Regular Session 2011
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SB 1284 |
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Introduced by Senators Reagan, Nelson: Antenori, Barto, Murphy; Representatives Gowan, Harper, Judd
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AN ACT
amending title 32, chapter 10, article 3, Arizona Revised Statutes, by adding section 32‑1155.01; relating to the registrar of contractors.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 32, chapter 10, article 3, Arizona Revised Statutes, is amended by adding section 32-1155.01, to read:
32-1155.01. Arbitration process; applicability
A. Notwithstanding title 41, chapter 6, article 10 and any other provision of this article, if a person files a written complaint with the registrar pursuant to section 32-1155 and any party to the complaint disputes the registrar's finding after an investigation and within thirty calendar days after the finding is made, the complaint May be referred to arbitration if the cost of repairs is five thousand dollars or less. If the cost of repairs is more than five thousand dollars, the contesting parties, within thirty calendar days after the finding, may opt into arbitration if all of the parties agree. For the purposes of this subsection, the estimated cost of repairs shall be determined at the time of investigation by the registrar. if either party disputes the cost of the repairs, the registrar shall obtain two separate bids from qualified contractors on the cost of the repairs and use the lower of the two bids to determine the estimated cost of repairs.
B. The registrar shall serve the parties notice whether the matter has been referred to arbitration within ten calendar days after a request for arbitration has been received. If the matter has been referred to arbitration, the notice also shall identify the arbitrator selected by the Registrar, who shall be a member in good standing of the construction law section of the state bar of Arizona. Service shall be made by personal service or by mailing a copy of the award by certified mail to the licensee's latest address of record on file in the Registrar's office. If service is made by certified mail, it is effective five calendar days after the notice is mailed.
C. Section 12‑3012 applies and the parties have the right to remove an arbitrator at any time on discovery of grounds set forth in section 12‑3011, subsection B. If an arbitrator is removed pursuant to this subsection, the registrar shall notify the parties of the new arbitrator selected within seven calendar days. The arbitrator has immunity as prescribed in section 12‑3014.
D. The licensee may post a bond in the amount of the estimated cost of repairs within fourteen calendar days after service of the registrar's notice referring the matter to arbitration. The registrar may not suspend or revoke any of the licenses held by a licensee that posts a bond in the amount of the claim subject to arbitration.
E. The arbitration process is governed by section 12‑3015.
F. Except as otherwise provided in this section, sections 12‑3010, 12‑3016 and 12‑3017 apply to arbitrations under this section.
G. The arbitration hearing shall be held within sixty calendar days after the registrar's notice referring the matter to arbitration. The arbitrator may extend the deadline to hold the hearing for an additional thirty calendar days on agreement of the parties or for good cause shown.
H. The arbitrator is prohibited from ordering the suspension or revocation of any license, awarding monetary damages, assessing civil penalties or awarding any legal fees or costs in any amount.
I. The arbitrator shall make a determination no later than thirty calendar days after the close of the arbitration hearing, and the determination becomes final after thirty‑five calendar days after the date of the determination. The arbitrator shall make a signed or otherwise authenticated written record of the determination and shall serve a copy of the determination to each party to the arbitration proceeding as well as the registrar by personal service or by mailing a copy of the order by certified mail to the licensee's latest address of record on file in the registrar's office. If service is made by certified mail, it is effective five calendar days after the notice is mailed. A party waives any objection that a determination was not timely made unless the party gives notice of the objection to the arbitrator before receiving notice of the determination.
J. Notwithstanding any other provision in this chapter, if a contractor refuses or is unable to comply with a determination of the arbitrator to remedy the violation after the determination becomes final pursuant to subsection I of this section:
1. The registrar may order that the cash bond posted pursuant to subsection D of this section be discharged within forty‑five calendar days. The complainant is not eligible for any additional award from the residential contractors' recovery fund pursuant to section 32‑1132 and may not seek any additional award, claim or remedy through civil court.
2. If a bond is not posted by the licensee pursuant to subsection D of this section, the registrar may suspend or revoke the licensee's license.
K. This section applies to all complaints filed with the registrar on or after the effective date of this section.