Arizona 2023 2023 Regular Session

Arizona Senate Bill SB1715 Comm Sub / Analysis

Filed 03/01/2023

                    Assigned to COM 	AS PASSED BY COW 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Sixth Legislature, First Regular Session 
 
AMENDED 
FACT SHEET FOR S.B. 1715 
 
contractor licensure; handyman exemption 
Purpose 
Increases, from $1,000 to $2,000, the aggregate contract price, including labor and 
materials, exempt from licensure as a contractor with the Registrar of Contractors (ROC). Requires 
the ROC to increase the amount of the exemption each year beginning January 1, 2024, for 
inflation based on the GDP Price Deflator, rounded to the nearest $50. 
Background 
The ROC licenses and regulates residential and commercial contractors.  The powers and 
duties of the ROC include: 1) maintaining a complete indexed record of all applications and 
licenses issued, renewed, terminated, cancelled, revoked or suspended, including timely notation 
of any judicial disposition on appeal, for a period of not less than seven years; 2) adopting rules 
necessary to classify contractors in a manner consistent with established usage and procedure in 
the construction business; 3) developing and instituting programs to educate the public and 
contractors regarding statues, rules, policies and operations of the agency; and 4) administering 
the Residential Contractors' Recovery Fund for the benefit of a claimant damaged by an act, 
representation, transaction or conduct of a licensed residential contractor (A.R.S. Title 32,  
Chapter 10). Statute generally exempts, from contractor licensure requirements, persons whose 
aggregate contract price, including labor and materials, does not exceed $1,000, commonly known 
as the handyman exemption (A.R.S. § 32-1121).  
If increasing the aggregate contract price that is exempt from contractor licensure changes 
the ROC's revenues, there may be a fiscal impact to the state General Fund. 
Provisions 
1. Increases, from $1,000 to $2,000, the aggregate contract price, including labor and materials, 
for exclusion from licensure as a contractor with the ROC. 
2. Requires the ROC, for each year beginning January 1, 2024, to increase the dollar amount of 
the exemption for inflation based on the GDP Price Deflator, rounded to the nearest $50. 
3. Makes technical and conforming changes. 
4. Becomes effective on the general effective date. 
Amendments Adopted by Committee 
• Makes conforming changes.   FACT SHEET – Amended  
S.B. 1562 
Page 2 
 
 
Amendments Adopted by Committee of the Whole 
• Increases, from $1,000 to $2,000, the value threshold of labor and materials for exclusion from 
licensure as a contractor, rather than to $2,500. 
• Requires the ROC to round the annual increased dollar amount for inflation to the nearest $50.  
Senate Action 
COM           2/15/23 DPA 6-1-0 
Prepared by Senate Research 
March 1, 2023 
JT/PM/sr