HB2233 - 571R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 23-491, Arizona Revised Statutes, is amended to read:

START_STATUTE23-491. Definitions

In this article, unless the context otherwise requires:

1. "Authorized representative" means the elevator chief and elevator inspector employed by the division.

2. "Certificate" means a certificate of inspection issued by the division.

3. "Commission" means the industrial commission of Arizona.

4. "Conveyance":

(a) Means an elevator, dumbwaiter, escalator, moving walk, manlift, personnel hoist, material hoist, stage lift and special purpose personnel elevator. , excluding

(b) does not include conveyances located at mines and that are subject to regulation and inspection by the state mine inspector pursuant to title 27, chapter 3.

5. "Director" means the director of the division of occupational safety and health.

6. "Division" means the division of occupational safety and health of the industrial commission.

7. "Dumbwaiter" means a hoisting and lowering mechanism with a car of limited capacity and size that moves in guides in a substantially vertical direction and that is used exclusively for carrying material.

8. "Elevator" means a hoisting and lowering mechanism equipped with a car or platform that moves in guides in substantially vertical direction and that serves two or more floors of a building or structure.

9. "Elevator company" means a person that is engaged in the business of erecting, constructing, installing, altering, servicing, repairing or maintaining conveyances.

10. "Elevator Contractor" means a person that has been issued an elevator contractor's license pursuant to title 32, chapter 10 and that employs at least one elevator mechanic.

11. "Elevator Mechanic" means an individual who is qualified to engage in erecting, constructing, installing, ALTERING, servicing, repairing or maintaining conveyances.

10. 12. "Escalator" means a power driven power-driven, inclined, continuous stairway used for raising or lowering passengers.

11. 13. "Interested party" means the commission and its agents and the owner or operator who has been issued a correction order.

12. 14. "Manlift" means a device consisting that consists of a power driven power-driven endless belt moving in one direction only and provided with steps or platforms and attached handholds for the transportation of and that trAnsports personnel from floor to floor.

13. 15. "Material hoist":

(a) Means a hoist for raising and lowering materials only. and prohibiting the hoisting of

(b) does not include a device that hoists persons.

14. 16. "Moving walk" means a type of passenger carrying passenger-carrying device on which passengers stand or walk and in which the passenger carrying passenger-carrying surface remains parallel to its direction of motion and is uninterrupted.

15. 17. "Owner" or "operator":

(a) Means an individual or organization, including this state and all political subdivisions of this state, who that has title to, controls or has the duty to control the operation of one or more conveyances. , but shall

(b) does not include an individual or organization that is engaged in mining or metallurgical operations whose operation is subject to regulation and inspection by the state mine inspector pursuant to title 27, chapter 3.

16. 18. "Personnel hoist":

(a) Means a mechanism for use that is used in connection with the construction, alteration, maintenance or demolition of a building, structure or other work, that is used for hoisting and lowering workers and materials and that is equipped with a car that moves on guide members during its vertical movement. The term

(b) Includes a hoistway of a personnel hoist.

17. 19. "Private elevator inspector" means an individual who is authorized by the commission under section 23-491.16 to conduct inspections under this article.

18. 20. "Special purpose personnel elevator" means a passenger, hand powered hand-powered, counterweighted device or an electric powered electric-powered device that travels vertically in guides and that serves two or more landings.

19. 21. "Stage lift" means a hoisting and lowering mechanism equipped with a platform that moves in guides in a substantially vertical direction and that serves one or more landings. END_STATUTE

Sec. 2. Section 23-491.02, Arizona Revised Statutes, is amended to read:

START_STATUTE23-491.02. Owners and operators; duties

Every each owner and operator of a conveyance shall:

1. Construct, furnish, maintain and provide safe and adequate devices with which to safely and properly convey or move all persons and material utilizing using the services offered by the owner or operator of such device devices.

2. Comply with all standards and regulations issued pursuant to this article.

3. Ensure that a the conveyance is inspected at all of the following times:

(a) Before placing a the conveyance in operation after the initial installation of the conveyance.

(b) After modification or alteration of a the conveyance.

(c) After the inspection pursuant to subdivision (a) of this paragraph, annually or as otherwise directed by the commission.

4. Ensure that the conveyance is installed, serviced or repaired by an elevator contractor and elevator mechanic in accordance with this article and the rules adopted pursuant to this article. END_STATUTE

Sec. 3. Section 32-1101, Arizona Revised Statutes, is amended to read:

START_STATUTE32-1101. Definitions

A. In this chapter, unless the context otherwise requires:

1. "Advertisement":

(a) Means any written or oral publication, dissemination, solicitation or circulation that is intended to directly or indirectly induce any person to enter into an agreement for contracting services with a contractor. , including

(b) includes business cards and telephone directory display advertisements.

2. "Commercial contractor" is synonymous with the terms "commercial builder", "industrial builder" and "public works builder" and means any person, firm, partnership, corporation, association or other organization, or a combination of any of them, that, for compensation, undertakes to or offers to undertake to, purports to have the capacity to undertake to, submits a bid or responds to a request for qualification or a request for proposals for construction services to, does himself or by or through others, or directly or indirectly supervises others, except within residential property lines, to:

(a) Construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or any other structure or work in connection with the construction.

(b) Connect such a structure or improvements to utility service lines and metering devices and the sewer line.

3. "Contractor":

(a) Is synonymous with the term "builder" and means any person, firm, partnership, corporation, association or other organization, or a combination of any of them, that, for compensation, undertakes to or offers to undertake to, purports to have the capacity to undertake to, submits a bid or responds to a request for qualification or a request for proposals for construction services to, does himself or by or through others, or directly or indirectly supervises others to:

(i) Construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or any other structure or work in connection with the construction.

(ii) Connect such a structure or improvements to utility service lines and metering devices and the sewer line.

(iii) Provide mechanical or structural service for any such structure or improvements.

(b) Includes subcontractors, specialty contractors, floor covering contractors, hardscape contractors and consultants who represent that they are able to supervise or manage a construction project for the property owner's benefit, including hiring and firing specialty contractors, scheduling work on the project and selecting and purchasing construction material.

4. "conveyance" has the same meaning prescribed in section 23-491.

4. 5. "Dual licensed contractor" is synonymous with the term "commercial and residential builder" and means any person, firm, partnership, corporation, association or other organization, or a combination of any of them, that for compensation undertakes to or offers to undertake to, purports to have the capacity to undertake to, submits a bid or responds to a request for qualification or a request for proposals for construction services to, does himself or by or through others, or directly or indirectly supervises others under a single license on commercial or residential property to:

(a) Construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, excavation or other structure or improvement, including any appurtenances, or to do any part thereof.

(b) Connect such a structure or improvements to utility service lines and metering devices and the sewer line.

6. "elevator" has the same meaning prescribed in section 23-491.

7. "Elevator Contractor" means a person that is issued an elevator contractor's license and that employs at least one elevator mechanic.

8. "Elevator Mechanic" means an individual who is qualified to engage in erecting, constructing, installing, ALTERING, servicing, repairing or maintaining elevators and related conveyances.

5. 9. "License" means an authorization for the person who is listed on the electronic, paper or other records maintained by the registrar to act in the capacity of a contractor.

6. 10. "Named on a license" means required to be identified as required pursuant to section 32-1122, subsection B.

7. 11. "Person" means a corporation, company, partnership, firm, association, trust, society or natural person.

8. 12. "Qualifying party" means a person who is responsible for a licensee's actions and conduct performed under the license and who either:

(a) Has an ownership interest in the license.

(b) Is regularly employed by the licensee.

9. 13. "Registrar" means the registrar of contractors.

10. 14. "Residential contractor":

(a) Is synonymous with the term "residential builder" and means any person, firm, partnership, corporation, association or other organization, or a combination of any of them, that for compensation undertakes to or offers to undertake to, purports to have the capacity to undertake to, submits a bid or responds to a request for qualification or a request for proposals for construction services to, or does himself or by or through others, within residential property lines:

(i) Construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any residential structure, such as houses, townhouses, condominiums or cooperative units and any appurtenances on or within residential property lines.

(ii) Connect such a residential structure to utility service lines, metering devices or sewer lines.

(iii) Provide mechanical or structural service for any such residential structure.

(b) Does not include an owner making improvements to the owner's property pursuant to section 32-1121, subsection A, paragraph 5.

B. Only contractors as defined in this section are licensed and regulated by this chapter. END_STATUTE

Sec. 4. Section 32-1121, Arizona Revised Statutes, as amended by Laws 2019, chapter 140, section 1, is amended to read:

START_STATUTE32-1121. Persons not required to be licensed; penalties; applicability

A. This chapter does not apply to:

1. An authorized representative of the United States government, this state or any county, incorporated city or town, reclamation district, irrigation district or other municipality or political subdivision of this state.

2. Trustees of an express trust that is not formed for the purpose of conducting business as a contractor or officers of a court, if they are acting within the terms of their trust or office.

3. Public utilities operating under regulation of the corporation commission or construction, repair or operation incidental to discovering or producing petroleum or gas, or drilling, testing, abandoning or otherwise operating a petroleum or gas well, if performed by an owner or lessee.

4. Any materialman, manufacturer or retailer that furnishes finished products, materials or articles of merchandise and that does not install or attach such items or installs or attaches such items if the total value of the sales contract or transaction involving such items and the cost of the installation or attachment of such items to a structure does not exceed $1,000, including labor, materials and all other items, but excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet using a two-pronged or three-pronged electrical connector or that has internal batteries that do not exceed twelve volts in a single, series or parallel configuration and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure. The materialman, manufacturer or retailer shall inform the purchaser that the installation may also be performed by a licensed contractor whose name and address the purchaser may request.

5. Owners of property who improve such property or who build or improve structures or appurtenances on such property and who do the work themselves, with their own employees or with duly licensed contractors, if the structure, group of structures or appurtenances, including the improvements thereto, are intended for occupancy solely by the owner and are not intended for occupancy by members of the public as the owner's employees or business visitors and the structures or appurtenances are not intended for sale or for rent. In all actions brought under this chapter, except an action against an owner-occupant as defined in section 33-1002, proof of the sale or rent or the offering for sale or rent of any such structure by the owner-builder within one year after completion or issuance of a certificate of occupancy is prima facie evidence that such a project was undertaken for the purpose of sale or rent. For the purposes of this paragraph, "sale" or "rent" includes any arrangement by which the owner receives compensation in money, provisions, chattels or labor from the occupancy or the transfer of the property or the structures on the property.

6. Owners of property who are acting as developers and who build structures or appurtenances to structures on their property for the purpose of sale or rent and who contract for such a project with a general contractor licensed pursuant to this chapter and owners of property who are acting as developers, who improve structures or appurtenances to structures on their property for the purpose of sale or rent and who contract for such a project with a general contractor or specialty contractors licensed pursuant to this chapter. To qualify for the exemption under this paragraph, the licensed contractors' names and license numbers shall be included in all sales documents.

7. Architects or engineers who are engaging in their professional practice as defined in chapter 1 of this title and who hire or offer to hire the services of a contractor for preconstruction activities relating to investigation and discovery, including:

(a) Subsurface utility location and designation services.

(b) Potholing.

(i) Soil samples.

(ii) Rock samples.

(iii) Pavement samples.

(d) Locating existing features of a building or structure, including existing electrical, mechanical, plumbing and structural members.

8. A person licensed, certified or registered pursuant to title 3, chapter 20 or a person working under the direct supervision of a person certified or qualified pursuant to title 3, chapter 20 to the extent the person is engaged in pest management.

9. The sale or installation of finished products, materials or articles of merchandise that are not fabricated into and do not become a permanent fixed part of the structure. This exemption does not apply if a local building permit is required, if the total price of the finished product, material or article of merchandise, including labor but excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet using a two-pronged or three-pronged electrical connector or that has internal batteries that do not exceed twelve volts in a single, series or parallel configuration and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure, is more than $1,000 or if the removal of the finished product, material or article of merchandise causes material damage to the structure or renders the structure unfit for its intended use.

10. Employees of the owners of condominiums, townhouses, cooperative units or apartment complexes of four units or less or the owners' management agent or employees of the management agent repairing or maintaining structures owned by them.

11. Any person who engages in the activities regulated by this chapter, as an employee of an exempt property owner or as an employee with wages as the person's sole compensation. This paragraph does not apply to work that is done by an elevator contractor or elevator mechanic, including the installation, service and repair of elevators or elevator equipment. the Installation, service and repair of elevators or elevator equipment do not include routine work that is conducted by an employee of an elevator contractor and that does not involve the actual physical installation, maintenance and repair of elevators.

12. A surety company or companies that are authorized to transact business in this state and that undertake to complete a contract on which they issued a performance or completion bond if all construction work is performed by duly licensed contractors.

13. Insurance companies that are authorized to transact business in this state and that undertake to perform repairs resulting from casualty losses pursuant to the provisions of a policy if all construction work is performed by duly licensed contractors.

14. Any person other than a licensed contractor engaging in any work or operation on one undertaking or project by one or more contracts, for which the aggregate contract price, including labor, materials and all other items, but excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet using a two-pronged or three-pronged electrical connector or that has internal batteries that do not exceed twelve volts in a single, series or parallel configuration and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure, is less than $1,000. The work or operations that are exempt under this paragraph shall be of a casual or minor nature. This exemption does not apply:

(a) In any case in which the performance of the work requires a local building permit.

(b) In any case in which the work or construction is only a part of a larger or major operation, whether undertaken by the same or a different contractor, or in which a division of the operation is made in contracts of amounts less than $1,000, excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet using a two-pronged or three-pronged electrical connector or that has internal batteries that do not exceed twelve volts in a single, series or parallel configuration and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure, for the purpose of evasion of this chapter or otherwise.

(c) To a person who uses any form of advertising to the public in which the person's unlicensed status is not disclosed by including the words "not a licensed contractor" in the advertisement.

15. A person who is licensed, certified or registered pursuant to title 41, chapter 37, article 4 and who is not otherwise required to be licensed under this chapter or an employee of such person.

16. A person who functions as a gardener by performing lawn, garden, shrub and tree maintenance.

17. Alarm agents as defined in section 32-101.

18. Cable television, satellite television and telecommunications providers, including data and related services of cable television, satellite television and telecommunications providers including contractors and subcontractors of cable television, satellite television and telecommunications providers if the work of the contractors and subcontractors is limited to installing low-voltage cable, telephone services, internet services and data service. Installation installing does not include digging, trenching, grading, horizontal boring, compacting or filling earthen or other material before the service drop of the commercial or residential structure.

B. A person who is licensed to perform work in a particular trade pursuant to this chapter is not required to obtain and maintain a separate license for mechanical or structural service work the person performs within the scope of that trade.

C. Any person who does not have an exemption from licensure pursuant to subsection A, paragraph 14, subdivision (c) of this section is subject to prosecution for a violation of section 44-1522. The attorney general may investigate the act or practice and take appropriate action pursuant to title 44, chapter 10, article 7.

D. The exemptions from licensure pursuant to subsection A, paragraphs 4, 9 and 14 of this section do not apply to either of the following:

1. All fire safety and mechanical, electrical and plumbing work that is done in connection with fire safety installation and fire safety maintenance and repair. For the purposes of this paragraph, "fire safety installation" means hardwired or interconnected smoke alarms and fire sprinklers and does not include an individual device that is attached by a nail, screw or other fastening device to the frame or foundation of any residential unit. For the purposes of this paragraph, fire safety maintenance and repair does not include routine work that is conducted by an employee of an apartment or condominium complex and that is incidental to the fire safety equipment.

2. All work done, including installing, maintaining and repairing devices, appliances or equipment, that involves connecting to any supply of natural gas, propane or other petroleum or gaseous fuel. This paragraph does not impact the effect of section 36-1624.01.END_STATUTE

Sec. 5. Section 32-1121, Arizona Revised Statutes, as amended by Laws 2019, chapter 145, section 5, is amended to read:

START_STATUTE32-1121. Persons not required to be licensed; penalties; applicability

A. This chapter does not apply to:

2. Officers of a court or trustees of an express trust that is not formed for the purpose of conducting business as a contractor, if they are acting within the terms of their office or trust.

3. Public utilities operating under regulation of the corporation commission or construction, repair or operation incidental to discovering or producing petroleum or gas, or the drilling, testing, abandoning or other operation of a petroleum or gas well, if performed by an owner or lessee.

4. Except as provided in subsection D of this section, any materialman, manufacturer or retailer who informs the purchaser that the installation may also be performed by a licensed contractor whose name and address the purchaser may request and, who furnishes finished products, materials or articles of merchandise and who either:

(a) Does not install or attach such items.

(b) Installs or attaches such items if the total value of the sales contract or transaction involving such items and the cost of the installation or attachment of such items to a structure does not exceed $1,000, including labor, materials and all other items, but excluding any electrical fixture or appliance that meets all of the following:

(i) Was designed by the manufacturer.

(ii) Is unaltered, unchanged or unmodified by any person.

(iii) Can be plugged into a common electrical outlet.

5. Owners of property who improve such property or who build or improve structures or appurtenances on such property and who do the work themselves, with their own employees or with duly licensed contractors, if the structure, group of structures or appurtenances, including the improvements thereto, are intended for occupancy solely by the owner and are not intended for occupancy by members of the public as the owner's employees or business visitors and the structures or appurtenances are not intended for sale or for rent. In all actions brought under this chapter, except an action against an owner-occupant as defined in section 33-1002, proof of the sale or rent or the offering for sale or rent of any such structure by the owner-builder within one year after completion or issuance of a certificate of occupancy is prima facie evidence that such project was undertaken for the purpose of sale or rent. For the purposes of this paragraph, "sale" or "rent" includes any arrangement by which the owner receives compensation in money, provisions, chattels or labor from the occupancy or the transfer of the property or the structures on the property.

(a) Subsurface utility location and designation services.

(b) Potholing.

(i) Soil samples.

(ii) Rock samples.

(iii) Pavement samples.

(d) Locating existing features of a building or structure, including existing electrical, mechanical, plumbing and structural members.

9. Except as provided in subsection D of this section, the sale or installation of finished products, materials or articles of merchandise that are not fabricated into and do not become a permanent fixed part of the structure. This exemption does not apply if a local building permit is required, if the removal of the finished product, material or article of merchandise causes damage to the structure or renders the structure unfit for its intended use or if the total price of the finished product, material or article of merchandise is more than $1,000, including labor but excluding any electrical fixture or appliance that meets all of the following:

(a) Was designed by the manufacturer.

(b) Is unaltered, unchanged or unmodified by any person.

12. A surety company or companies that are authorized to transact business in this state and that undertake to complete a contract on which they issued a performance or completion bond, if construction work is performed by duly licensed contractors.

13. Insurance companies that are authorized to transact business in this state and that undertake to perform repairs resulting from casualty losses pursuant to the provisions of a policy, if construction work is performed by duly licensed contractors.

14. Except as provided in subsection D of this section, any person other than a licensed contractor engaging in any work or operation on one undertaking or project by one or more contracts, for which the aggregate contract price is less than $1,000, including labor, materials and all other items, but excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person and that can be plugged into a common electrical outlet. The work or operations that are exempt under this paragraph must be of a casual or minor nature. This exemption does not apply:

(a) In any case in which the performance of the work requires a local building permit.

(c) To a person who utilizes any form of advertising to the public in which the person's unlicensed status is not disclosed by including the words "not a licensed contractor" in the advertisement.

15. A person who is licensed, certified or registered pursuant to title 41, chapter 37, article 4 and who is not otherwise required to be licensed under this chapter or an employee of such person.

16. A person who functions as a gardener by performing lawn, garden, shrub and tree maintenance.

17. Alarm agents as defined in section 32-101.

B. A person who is licensed to perform work in a particular trade pursuant to this chapter is not required to obtain and maintain a separate license for mechanical or structural service work performed within the scope of such trade by such person.

D. The exemptions from licensure pursuant to subsection A, paragraphs 4, 9 and 14 of this section do not apply to either of the following:

2. All work that is done, including the installation, maintenance and repair of devices, appliances or equipment, that involves the connecting to any supply of natural gas, propane or other petroleum or gaseous fuel. Nothing in this paragraph impacts the effect of section 36-1624.01.

E. A joint venture or other combination of persons, firms, partnerships, corporations, associations or other organizations is not required to obtain a separate contractor's license in its own name if all of the following apply:

1. At least one member of the joint venture or combination holds a contractor's license in good standing with the registrar.

2. Each member of the joint venture or combination that acts as a contractor holds a license in good standing with the registrar.

3. Each licensed member of the joint venture or combination only performs work within the scope of that member's contractor's license or licenses. END_STATUTE

Sec. 6. Section 32-1151, Arizona Revised Statutes, is amended to read:

START_STATUTE32-1151. Engaging in contracting without license prohibited; elevator contractors

a. It is unlawful for any person, firm, partnership, corporation, association or other organization, or a combination of any of them, to engage in the business of, submit a bid or respond to a request for qualification or a request for proposals for construction services as, act or offer to act in the capacity of or purport to have the capacity of a contractor without having a contractor's license in good standing in the name of the person, firm, partnership, corporation, association or other organization as provided in this chapter, unless the person, firm, partnership, corporation, association or other organization is exempt as provided in this chapter. Evidence of securing a permit from a governmental agency or the employment of a person on a construction project shall be accepted in any court as prima facie evidence of existence of a contract.

b. It is unlawful for a person to conduct the FOLLOWING activities unless the person is an elevator mechanic who is working under the direct supervision of a licensed elevator contractor:

1. erect, CONSTRUCT, alter, replace, maintain, remove or dismantle any elevator or related CONVEYANCE contained within buildings or structures in this state.

2. Wire any elevator or related conveyance from the mainline feeder terminals on the controller.

c. subsection b of this section does not apply to the removal or dismantling of conveyances that are destroyed as a result of a demolition of a secured building or structure or for which the hoistway or wellway is demolished back to the basic support structure whereby no access is allowed to the basic support structure to endanger the safety and welfare of a person. END_STATUTE