ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	House: GE DP 12-0-0-1 | 3^rd Read 59-0-1-0 Senate: COM DPA 9-0-0-0 | 3^rd Read 26-0-4-0 Final Pass: 52-0-8-0

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HB 2152: residential contractors' recovery fund; eligibility

Sponsor: Representative Kavanagh, LD 23

Transmitted to the Governor

Overview

Modifies the criteria for eligibility for the Residential Contractors' Recovery Fund.

History

The Residential Contractors' Recovery Fund (Fund) is administered by the Registrar of Contractors in order to benefit a claimant who is damaged by an act, transaction, representation or conduct of a licensed residential contractor that is in violation of statute (A.R.S. § 32-1132).

The following claimants are eligible for an award from the Fund:

1) An individual who meets outlined requirements;

2) A limited liability company (LLC) to which all of the following apply:

a) The LLC owns the residential real property that is damaged by the failure of a residential contractor to adequately build or improve a residential structure;

b) All of the LLC members actually occupy or intend to occupy the residential real property; and

c) A member of the LLC has not received monies from the Fund in the last two years.

3) A trust to which all of the following apply:

a) The trust is a revocable living trust;

b) The trust owns the residential real property that is damaged by the failure of a residential contractor to adequately build or improve a residential structure;

c) All of the trustors actually occupy or intend to occupy the residential real property; and

d) A trustor has not received monies from the Fund in the last two years.

4) A statutorily defined planned community or unit owners' association; and

5) A lessee of residential real property that meets outlined requirements (A.R.S. § 32-1132).

Provisions

1. Removes the requirement that a member of the LLC has not received monies from the Fund in the last two years for an LLC to be eligible for an award from the Fund. (Sec. 1)

2. Repeals the requirement that a trustor has not received monies from the Fund within the last two years to be eligible for an award from the Fund. (Sec. 1)

3. Specifies that, to be eligible for an award from the Fund, at least one of the LLC members actually occupy or will occupy the residential real property as their primary residence. (Sec. 1)

4. Makes technical and conforming changes. (Sec. 1)

5. Contains a retroactivity clause of January 1, 2021. (Sec. 2)

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9.                   HB 2152

10. Initials SJ  Page 0 Transmitted

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