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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
residential contractor assessments; recovery fund
Purpose
Reduces the maximum assessment paid by a residential contractor every two years and prescribes adjustments to the assessment amount based on the total balance of the Residential Contractors' Recovery Fund (Fund) at the end of a fiscal year.
Background
The Fund is administered by the Registrar of Contractors (ROC) for the benefit of eligible, damaged homeowners to recover losses or restore property if harmed by a licensed residential contractor that fails to properly construct or improve a residential structure. The maximum individual award from the residential contractors' recovery fund is $30,000. Each residential contractor pays a biennial license fee and a separate biennial assessment of up to $600. The assessment is deposited in the Fund (A.R.S. Title 32, Chapter 10, Article 2.1).
The Joint Legislative Budget Committee Baseline estimates an FY 2024 year-end balance of $27,315,200 for the Fund (JLBC Baseline).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Reduces the biennial assessment from a maximum of $600 to an amount of $370 for initial licensure and an amount of $270 for license renewal.
2. Requires the ROC, if the Fund balance exceeds $15,000,000 at the end of a fiscal year, to reduce the biennial assessments by 50 percent only until the Fund balance is less than $10,000,000 at the end of a subsequent fiscal year.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
February 1, 2024
MG/JC/cs