State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1271: construction liability; apportionment; study

PRIME SPONSOR: Senator Fann, LD 1

BILL STATUS: House Engrossed

               

Legend: Study Committee- Construction Liability Apportionment Study Committee Amendments – BOLD and Stricken (Committee)

Abstract

Relating to a purchaser dwelling action.

Provisions

1.       ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note In Session Law, establishes the Construction Liability Apportionment Study Committee with membership as follows:

a.       Three members from the Senate, no more than two members from the same political party and the President of the Senate will designate the co-chair; and

b.       Three members from the House of Representatives, no more than two members from the same political party and the Speaker of the House will designate the co-chair. (Sec. 1)

2.       States the Members of the Study Committee are eligible for reimbursement for expenses, but not for compensation. (Sec. 1)

3.       Instructs the Study Committee to research and make recommendations on the following:

a.       The use of an indemnity provision in construction contracts;

b.       The allocation of liability based on degree of fault;

c.        The assignment of financial responsibility;

d.       The way to address and remedy alleged construction defects prior to litigation;

e.       The frequency of construction defect litigation; and

f.         The affordability of insurance costs due to construction claims. (Sec. 1)

4.       Authorizes the Study Committee to hold public hearings, conduct fact-finding tours and take testimony from witnesses. (Sec. 1)

5.       Directs the Legislature to provide staff and support services to the Study Committee. (Sec. 1)

6.       Requires the Study Committee to submit a report of its findings and recommendations to the Governor, the President of the Senate, the Speaker of the House of Representatives and a copy to the Secretary of State, by December 16, 2018. (Sec. 1)

7.       Repeals the Study Committee on July 1, 2019. (Sec. 1)

 

 

 

 

 

 

Current Law

Dwelling action means the action brought by the purchaser against the seller involving construction defects of a dwelling relating to the design, construction, condition or sale of the dwelling. 

 

Construction defect means a material deficiency in the design, construction, manufacture, repair, alteration, remodeling or landscaping of a dwelling that is the result of one of the following:

1.       A violation in construction code;

2.       The use of defective material products, components or equipment; or

3.       The failure to follow acceptable workmanship standards.

Construction professional means an architect, contractor, subcontractor, developer, builder (or vendor), supplier, engineer or inspector performing the design, supervision, inspection, construction or observation of the construction of any improvement to real property. (A.R.S. § 12-1361)

Statute outlines the process, procedures and other necessary actions for both the purchaser and the seller, including specific notice to the involved parties, itemized lists, necessary timelines, property inspection, repairs, replacement or monetary compensation options in the case of alleged construction defects pertaining to a dwelling action. (A.R.S. § 12-1363)

 

 

 

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Fifty-third Legislature                  SB 1271

Second Regular Session                               Version 3: House Engrossed

 

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