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House Engrossed
contractor license numbers; advertising; exception. |
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State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session 2021
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HOUSE BILL 2545 |
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AN ACT
amending sections 32-1124 and 32-1158, Arizona Revised Statutes; 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. Section 32-1124, Arizona Revised Statutes, is amended to read:
32-1124. License issuance; required posting and placement; license suspension
A. On receipt by When the registrar of receives the fee required by this chapter and an application furnishing complete information as required by the registrar, the registrar shall notify the applicant within sixty days after the date of the filing of a complete application of the action taken on the application, and if the registrar determines that the applicant is qualified to hold a license in accordance with this chapter, the registrar shall issue a license to the applicant permitting allowing the applicant to engage in business as a contractor under the terms of this chapter.
B. Licenses issued under this chapter and any renewals shall be signed by the registrar or the registrar's designated representative and by the licensee. The license is nontransferable, and satisfactory evidence of possession shall be exhibited by the licensee on demand. The license number appearing on any licenses held by the licensee must be preceded by the acronym "ROC" and shall be posted or placed as follows:
1. In a conspicuous place on premises where any work is being performed. , shall be placed
2. On all written bids and estimates submitted by the licensee. and shall be placed
3. On all broadcast, published, internet or billboard advertising, letterheads and other documents used by the licensee to correspond with the licensee's customers or potential customers in the conduct of business regulated by this chapter.
4. On all broadcast, internet or billboard advertising, unless the BROADCAST, internet or billboard advertising includes a website's uniform resource locator that directly links to a WEBSITE that PROMINENTLY displays the licensee's name and license number.
C. A violation of this subsection B of this section relating to posting and placement of license numbers shall be, at the discretion of the registrar, grounds for disciplinary action pursuant to section 32-1154, subsection A, paragraph 12, but not grounds for preventing the award of a contract, voiding an awarded contract, or any other claim or defense against the licensee. For the purposes of this subsection, advertising does not include a trade association directory listing that is distributed solely to the members of the association and not to the general public.
C. D. If an application for a license is denied for any reason provided in this chapter, the application fee paid by the applicant is forfeited and shall be deposited pursuant to section 32-1107. A reapplication for a license shall be accompanied by the fee fixed by this chapter.
D. E. On issuance or renewal of a license, the registrar, at the request of a licensee, shall issue a single license certificate showing all contracting licenses held by the licensee that are currently in good standing and their dates of expiration.
E. F. The registrar may establish procedures to allow a licensee to establish a common expiration or renewal date for all licenses issued to the licensee and may provide for proration of license fees for that purpose.
F. G. The registrar may suspend by operation of law a license issued under this chapter if any of the following occurs:
1. The licensed entity is dissolved. The dissolution of the licensed entity includes the death of a sole owner, a change to the partnership by either adding or removing a partner, the revocation or dissolution of corporate authority or the dissolution of a limited liability company or limited liability partnership.
2. The licensed entity does not have authority to do business in this state.
3. The license is obtained or renewed with an insufficient funds check. The license remains suspended until the registrar receives sufficient funds as payment for the license fees and assessments.
Sec. 2. Section 32-1158, Arizona Revised Statutes, is amended to read:
32-1158. Contract requirements; provision of documents and receipt at contract signing
A. Any contract in an amount of more than one thousand dollars $1,000 entered into between a contractor and the owner of a property to be improved shall contain in writing at least the following information:
1. The name of the contractor and the contractor's business address and license number.
2. The name and mailing address of the owner and the jobsite address or legal description.
3. The date the parties entered into the contract.
4. The estimated date of completion of all work to be performed under the contract.
5. A description of the work to be performed under the contract.
6. The total dollar amount to be paid to the contractor by the owner for all work to be performed under the contract, including all applicable taxes.
7. The dollar amount of any advance deposit paid or scheduled to be paid to the contractor by the owner.
8. The dollar amount of any progress payment and the stage of construction at which the contractor will be entitled to collect progress payments during the course of construction under the contract.
9. That the property owner has the right to file a written complaint with the registrar for an alleged violation of section 32-1154, subsection A. The contract shall contain the registrar's telephone number and website address and shall state that complaints must be made within the applicable time period as set forth in section 32-1155 32-1162, subsection A. The information in this paragraph must be prominently displayed in the contract in at least ten point ten-point bold type, and the contract shall be signed by the property owner and the contractor or the contractor's designated representative. This paragraph does not apply to a person who is subject to and complies with section 12-1365.
B. When a contractor and an owner sign a contract, the contractor shall provide the owner with a legible copy of all documents signed and a written and signed receipt for and in the true amount of any cash paid to the contractor by the owner.
C. The requirements of this section are not prerequisites to the formation or enforcement of a contract. Failure to comply with the requirements of this section does not constitute a defense by either party to an action for compensation, damages, breach, enforcement or other cause of action based on the contract.