HB 2749
Initials VP Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: WM DP 7-2-1-0
HB 2749: TPT; prime contracting; exemption; alterations
Sponsor: Representative Cobb, LD 5
Caucus & COW
Overview
Modifies the definition of alteration and modification under the prime contracting classification.
History
Statute defines alteration as an activity or action that causes a direct physical change to existing
property with separate provisions for residential and commercial property. Also, the law allows
for the original contract amount to be exceeded by no more than 25% if the work performed
qualifies as an alteration. Modification is currently defined as construction, grading and leveling
ground, wreckage or demolition. (A.R.S. § 42-5075.R.1 and 6)
Provisions
1. Defines alteration as an activity or action that causes a direct physical change to existing
property and that does not increase the square footage of the existing residential property.
(Sec. 1)
2. Provides that for all existing property other than existing residential property, that the definition
of alteration does not apply if the contract amount is more than $750,000. (Sec. 1)
3. Defines modification as construction, grading and leveling ground, wreckage, demolition or
other activities that increase the square footage of the existing property. (Sec. 1)
4. Provides an effective date of January 1, 2023. (Sec. 2)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note