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Senate Engrossed House Bill
military installation fund; property conveyance. (now: contractors; qualifying party; liability) |
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State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session 2021
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HOUSE BILL 2760 |
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AN ACT
amending sections 32-1127 and 32-1162, Arizona Revised Statutes; relating to contractors.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 32-1127, Arizona Revised Statutes, is amended to read:
32-1127. Qualifying party; responsibility
A. While engaged as a qualifying party for a licensee, the qualifying party may not take other employment that would conflict with his the person's duties as qualifying party or conflict with his the person's ability to adequately supervise the work performed by the licensee. Such person may act in the capacity of the qualifying party for one additional licensee if one of the following conditions exists:
1. There is a common ownership of at least twenty-five per cent percent of each licensed entity for which the person acts in a qualifying capacity.
2. One licensee is a subsidiary of another licensee for which the same person acts in a qualifying capacity. For the purposes of this paragraph, "subsidiary" as used in this paragraph means a corporation of which at least twenty-five percent is owned by the other licensee.
B. While engaged as the qualifying party for a licensee, the qualifying party is responsible for any violation of this chapter by the licensee for licensure regulatory purposes under this chapter. This subsection does not impose personal liability on the qualifying party for a licensee's violation of this chapter.
Sec. 2. Section 32-1162, Arizona Revised Statutes, is amended to read:
32-1162. Statute of limitations; remedy violations
A. A person may file a written complaint pursuant to section 32-1155 with the registrar alleging a licensee has committed a violation of this chapter. The complaint must be filed:
1. For new home builds or other new building construction, within two years after the earlier of the close of escrow or actual occupancy.
2. For all other projects, within two years after the completion of the specific project.
B. For licensure regulatory purposes under this CHAPTER, a licensee's qualifying party is responsible for any violation of this chapter committed by the licensee during the period of time that the qualifying party is named on the license. This subsection does not impose personal liability on the qualifying party for a licensee's violation of this chapter.
C. For licensure regulatory purposes under this CHAPTER, a person named on a license is responsible for any violation of this chapter committed by the licensee during the period of time that person was named on the license. This subsection does not impose personal liability on a person named on a license for a licensee's violation of this chapter.
D. A licensee doing business as a sole proprietor may be personally LIABLE to the registrar for the purposes of enforcing this chapter, including subrogation proceedings brought by this state pursuant to section 32-1138.
Sec. 3. Legislative Intent
The changes to sections 32-1127 and 32-1162, Arizona Revised Statutes, as amended by this act, are intended to clarify that the term "responsible" in these sections applies only for licensure regulatory purposes under title 32, chapter 10, Arizona Revised Statutes, and does not expose a qualifying party, as defined in section 32-1101, Arizona Revised Statutes, or a person named on a license to personal liability for a violation of title 32, chapter 10, Arizona Revised Statutes.