 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First 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 Fund is $30,000. Each residential contractor pays a biennial license fee and a separate biennial assessment of up to $600. By administrative rule, the ROC sets the biennial assessment at $370 for initial licensure and $270 for license renewal. The biennial assessment is deposited in the Fund (A.R.S. ยงยง 32-1126; 32-1132; and 32-1132.01; A.A.C. R4-9-130).
The Joint Legislative Budget Committee Baseline estimates a FY 2025 year-end balance of $25,740,300 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
January 24, 2025
JT/JRM/ci