REVISED

ARIZONA STATE SENATE

JORDAN PITTMAN

LEGISLATIVE RESEARCH INTERN

LAURA BENITEZ

LEGISLATIVE RESEARCH ANALYST

COMMERCE COMMITTEE

Telephone: (602) 926-3171

RESEARCH STAFF

TO:                  MEMBERS OF THE SENATE

COMMERCE COMMITTEE

DATE:            February 24, 2020

SUBJECT:      Strike everything amendment to S.B. 1196, relating to contractors; licenses; posting

Purpose

            Allows a contractor licensee to meet license number posting requirements for broadcast, internet or billboard advertising by including a website's uniform resource locator (URL) on the advertising. Requires a licensee to post the licensee's license number on all submitted estimates.

Background

             The Registrar of Contractors (ROC) licenses and regulates residential and commercial contractors. Its powers and duties include: 1) making rules deemed necessary for minimum standards for construction; 2) developing, managing, operating and sponsoring construction‑related programs to benefit the public; 3) maintaining a list of licenses issued, renewed, revoked, terminated, cancelled or suspended; 4) administering the Residential Contractors' Recovery Fund; 5) developing and instituting programs to educate the public and contractors on contracting requirements and assist in dispute resolution; and 6) referring criminal violations to the appropriate law enforcement agency or prosecution authority (A.R.S. Title 32, Chapter 10).

            A licensed contractor must post the license number appearing on any license the licensee holds, preceded by the acronym ROC in: 1) a conspicuous place on premises where work is performed; 2) all written bids submitted by the licensee; and 3) all broadcast, published, internet or billboard advertising, letterheads and other documents used by the licensee to correspond with customers or potential customers. The ROC may take disciplinary action for a failure to meet the license number posting requirements. A licensee's failure to meet the requirements is not grounds for preventing the award of a contract, voiding an awarded contract, or any other claim or defense against the licensee (A.R.S. § 32-1124).

There is no anticipated fiscal impact to the state General Fund associated with this legislation. 

Provisions

1. Allows a licensee to meet the license number posting requirements for broadcast, internet or billboard advertising by including a website's URL that directly links to a website that prominently displays the licensee's name and license number.

2. Requires a licensee to post or place, on all estimates submitted by the licensee, the license number, preceded by the acronym ROC, of any licenses held by the licensee.

3. Makes technical and conforming changes.

4. Becomes effective on the general effective date.

Revisions

· Corrects information in the background relating to a licensee's violation of license number posting requirements.