ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

HB 2807: TPT; prime contracting; exemption; alterations

Sponsor: Representative Carbone, LD 25

Committee on Ways & Means

Overview

Modifies the definition of alteration and modification under the prime contracting classification.

History

Statute defines alteration as an activity or action that causes a direct physical change to existing property with separate provisions for residential and commercial property. Also, the law allows for the original contract amount to be exceeded by no more than 25% if the work performed qualifies as an alteration. Modification is currently defined as construction, grading and leveling ground, wreckage or demolition. (A.R.S. § 42-5075.R.1 and 6)

Provisions

1. Defines alteration as an activity or action that causes a direct physical change to existing property and that does not increase the square footage of the existing residential structure under the roof. (Sec. 1)

2. Provides that for all existing property other than existing residential property, that the definition of alteration does not apply if the contract amount is more than $750,000. (Sec. 1)

3. Defines modification as construction, grading and leveling ground, wreckage, demolition or other activities that increase the square footage of the existing residential structure under the roof. (Sec. 1)

4. Defines residential. (Sec.1)

5. Provides an effective date of January 1, 2024. (Sec. 2)

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

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10. HB 2807

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