ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

Senate: FICO DP 4-2-1 | 3rd Read 16-9-5-0

SB 1291: residential contractor assessments; recovery fund

Sponsor: Senator Hoffman, LD 15

Committee on Regulatory Affairs

Overview

Lowers the maximum amount that the Registrar of Contractors (ROC) can charge for an initial or renewal biennial assessment by 50% when the amount in the Residential Contractors' Recovery Fund (Recovery Fund) exceeds $15,000,000.

History

The ROC licenses and regulates residential and commercial contractors, investigates complaints against contractors, is authorized to suspend or revoke licenses, conduct hearings, issue citations and assess civil penalties. The ROC is permitted to charge application and license fees for the issuance and renewal of specified biennial contracting licenses. Statute requires an applicant for an initial or renewal contractor license to pay an assessment that cannot exceed $600 (Title 32, Chapter 10, A.R.S.).

The Recovery Fund is administered by the ROC for the benefit of claimants damaged by an act, representation, transaction or conduct of a licensed registered contractor that is in violation of statutory rules or regulations relating to contractors. The following claimants are eligible for awards from the Recovery Fund for damages to a residential real property damaged by the failure of a residential contractor to adequately build or improve a residential structure or appurtenance: 1) individuals that own and occupy or intend to occupy the residential real property; 2) a limited liability company that owns the residential real property and the property is occupied by one of the company's members; 3) a revocable living trust that owns the residential real property and whose trustors occupy or intend to occupy the property; 4) a planned community or condominium owners' association; and 5) a lessee that occupies or intends to occupy the residential real property and contracts directly with a residential contractor or indirectly with a subcontractor of the residential contractor. An award from the recovery fund cannot exceed the actual damages suffered by the claimant. The maximum amount an individual claimant can be awarded from the Recovery Fund is $30,000 (A.R.S. §§ 32-1132, 32-1132.01).

Provisions☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

1.   Changes the current $600 biennial assessment amount that is paid into the Recovery Fund for residential contracting as follows:

a)   an assessment of $370 for an initial license; and

b)   an assessment of $270 for a license renewal. (Sec. 1)

2.   States that if the Recovery Fund exceeds $15,000,000 at the end of the fiscal year (FY), then the assessments reduce by 50% until the total in a subsequent FY is less than $10,000,000 at which time the 100% assessment is reinstated. (Sec. 1)

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

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7.                     SB 1291

8.   Initials DC/RP     Page 0 Regulatory Affairs

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