Assigned to COM                                                                                                              AS PASSED BY COW

 

 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, Second Regular Session

 

AMENDED

FACT SHEET FOR h.b. 2152

 

residential contractors' recovery fund; eligibility

Purpose

Modifies eligibility criteria for an award from the Residential Contractors' Recovery Fund (Fund).

Background

The Fund is administered by the Registrar of Contractors for the benefit of a claimant damaged by an act, representation, transaction or conduct of a licensed residential contractor that is in violation of statutory rules or regulations relating to contractors.

Eligible claimants for an award from the Fund include the following: 1) an individual who actually occupies or intends to occupy the residential property as their primary residence; 2) a limited liability company (LLC) that owns the residential property which is actually occupied or intended to be occupied by all of the LLC's members as their primary residence and a member of the LLC has not received monies from the Fund in the past two years; 3) a revocable living trust that owns the residential property which is actually occupied or intended to be occupied by all of the trust's trustors as their primary residence and a trustor has not received monies from the Fund in the past two years; 4) a statutorily defined planned community or unit owners' association under outlined conditions; or 5) a lessee that meets outlined conditions (A.R.S. § 32-1132).

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

Provisions

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

2.   Removes the requirement that a trustor not have received monies from the Fund in the last two years to be eligible for an award from the Fund.

3.   Requires that at least one, rather than all, of an LLC's members actually occupy or will occupy the residential real property as their primary residence to be eligible for an award from the Fund.

4.   Makes technical and conforming changes.

5.   Becomes effective on the general effective date, retroactive to January 1, 2021.

Amendments Adopted by Committee

· Adds a retroactive date of January 1, 2021.

Amendments Adopted by Committee of the Whole

· Requires that at least one, rather than all, of an LLC's members actually occupy or will occupy the residential real property as their primary residence to be eligible for an award from the Fund.

House Action                                                           Senate Action

GE                   1/26/22      DP     12-0-0-0               COM               3/2/22        DPA       9-0-0         

3rd Read          2/3/22                   59-0-1

Prepared by Senate Research

March 23, 2022

JT/CY/sr