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ARIZONA HOUSE OF REPRESENTATIVESFifty-fourth Legislature Second Regular Session |
Senate: COM DP 8-0-0-0 | 3rd Read 30-0-0-0 |
SB 1162: registrar of contractors
Sponsor: Senator Gray, LD 21
Committee on Commerce
Overview
Makes various changes to the Registrar of Contractors (Registrar) statutes.
History
The Registrar was established to license and regulate residential and commercial contractors. The Registrar is appointed by, and serves at the pleasure of, the Governor. In order to obtain a license, an applicant must have a certain level of experience, pass a written examination, post a bond and pay a license fee. The applicant may be required to submit fingerprints for a criminal records check. The Registrar is required to maintain a complete indexed record of licensed contractors in the state as well as applications and licenses issued, renewed, terminated, cancelled, revoked or suspended. The Registrar also investigates complaints against contractors and is authorized to suspend or revoke a license, conduct hearings, issue citations and assess civil penalties (A.R.S., Title 32, Chapter 10).
The Registrar administers the Residential Contractors’ Recovery Fund which pays claims to homeowners who have been financially harmed by a licensed contractor. The Fund is financed by contractor-paid assessments collected at the time licenses are issued or renewed.
A qualifying party is a person who is responsible for a licensee's actions and conduct performed under the license who either has an ownership interest in the license or is regularly employed by the licensee (A.R.S. § 32-1101).
Provisions
Qualifying Party (Sec. 1)
1. Specifies a qualifying party's work experience documentation and verification must be waived if the qualifying party is or has been a qualifying party for a licensee in this state or another state in the same or comparable classification and meets all other qualifications.
2. Clarifies a qualifying party must complete a trade examination.
a) Revises the topics of the exam.
b) Specifies the trade examination must be waived if the qualifying party is or has been a qualifying party for a licensee in the state or another state in the same or comparable classification within the preceding five years.
3. Requires a qualifying party to complete a written statue and rules examination on general knowledge of Registrar of Contractor statutes and rules.
a) Specifies the statute and rules examination must be waived if the qualifying party is or has been a qualifying party for a licensee in this state within the preceding five years.
Disassociation of Qualifying Parties (Sec. 3)
4. Requires either the licensee or the qualifying party, rather than both, to notify the Registrar within 15 days after a disassociation.
5. Stipulates the Registrar, upon receiving notice from a qualifying party who disassociates with a licensee, must notify the licensee of the disassociation.
a) Outlines the contents of the notice.
6. Requires a licensee to obtain a qualifying party exemption or requalify through another person within 60 days after the date of the Registrar disassociation notice, rather than within 60 days after the disassociation.
7. Specifies the license is automatically suspended if the Registrar notifies a licensee of the disassociation and the licensee fails to:
a) Receive a qualifying party exemption; or
b) Requalify through another person within 60 days after notification.
Residential Contractors' Recovery Fund (Fund)
8. Specifies monies in the Fund may no longer be used for attorney fees or costs in contested cases appealed to the superior court. (Sec. 5)
9. Specifies the Registrar satisfies, rather than requiring the Registrar to satisfy, any unpaid claims any unpaid claims when sufficient monies have been deposited into the Fund. (Sec. 8)
Unlicensed Contracting (Sec. 9)
10. Removes the 10-business-day timeframe in which the Registrar must remove a person who meets specified criteria from the list of persons found to be contracting without a license
11. Modifies the criteria for removing a person from the list of persons found to be contracting without a license.
Licensure
12. Allows for an annual license renewal without claiming the biennial requirements would cause a hardship. (Sec.2)
13. Suspends, rather than requiring the Registrar to suspend, a license on notice from the Department of Revenue that the licensee has incurred and neglected to pay a tax debt. (Sec. 10)
14. Prohibits a person named on a suspended license from being named on another license, unless the person shows that all loss due to the act or omission for which the license was suspended has been satisfied. (Sec. 13)
15. Prohibits a person named on a revoked license from being named on another license for one year after the revocation. (Sec. 13)
Miscellaneous
16. Removes the ability of the Registrar, on the Registrar's own motion, to investigate the acts of a contractor. (Sec. 10)
17. Removes the requirement on a licensee to answer in writing to a complaint after the Registrar issues a citation. (Sec. 11)
18. Clarifies the statute of limitations on filing a complaint with the Registrar. (Sec. 12)
19. Requires, rather than permissively require, a person to cease and desist from an action under a cease and desist order. (Sec. 14)
20.
Makes technical changes. (Sec. 1, 4, 5,
6, 7, 11, 12, 15)
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24. SB 1162
25. Initials PRB Page 0 Commerce
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