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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
AMENDED
contractor licensure; handyman exemption
Purpose
Increases, from $1,000 to $2,000, the aggregate contract price, including labor and materials, exempt from licensure as a contractor with the Registrar of Contractors (ROC). Requires the ROC to increase the amount of the exemption each year beginning January 1, 2024, for inflation based on the GDP Price Deflator, rounded to the nearest $50.
Background
The ROC licenses
and regulates residential and commercial contractors. The powers and duties of
the ROC include: 1) maintaining a complete indexed record of all applications
and licenses issued, renewed, terminated, cancelled, revoked or suspended,
including timely notation of any judicial disposition on appeal, for a period of
not less than seven years; 2) adopting rules necessary to classify contractors
in a manner consistent with established usage and procedure in the construction
business; 3) developing and instituting programs to educate the public and
contractors regarding statues, rules, policies and operations of the agency;
and 4) administering the Residential Contractors' Recovery Fund for the benefit
of a claimant damaged by an act, representation, transaction or conduct of a
licensed residential contractor (A.R.S. Title 32,
Chapter 10). Statute generally exempts, from contractor licensure
requirements, persons whose aggregate contract price, including labor and
materials, does not exceed $1,000, commonly known as the handyman exemption (A.R.S.
§ 32-1121).
If increasing the aggregate contract price that is exempt from contractor licensure changes the ROC's revenues, there may be a fiscal impact to the state General Fund.
1. Increases, from $1,000 to $2,000, the aggregate contract price, including labor and materials, for exclusion from licensure as a contractor with the ROC.
2. Requires the ROC, for each year beginning January 1, 2024, to increase the dollar amount of the exemption for inflation based on the GDP Price Deflator, rounded to the nearest $50.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Makes conforming changes.
Amendments Adopted by Committee of the Whole
· Increases, from $1,000 to $2,000, the value threshold of labor and materials for exclusion from licensure as a contractor, rather than to $2,500.
· Requires the ROC to round the annual increased dollar amount for inflation to the nearest $50.
Senate Action
COM 2/15/23 DPA 6-1-0
Prepared by Senate Research
March 1, 2023
JT/PM/sr