Senate Engrossed House Bill registrar of contractors agency; continuation State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024 HOUSE BILL 2091 An Act amending sections 32-1104, 32-1122 and 32-1126, Arizona Revised Statutes; repealing section 41-3024.04, Arizona Revised Statutes; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3026.13; relating to the registrar of contractors agency. (TEXT OF BILL BEGINS ON NEXT PAGE)
Senate Engrossed House Bill registrar of contractors agency; continuation
State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024
HOUSE BILL 2091
Senate Engrossed House Bill
registrar of contractors agency; continuation
State of Arizona
House of Representatives
Fifty-sixth Legislature
Second Regular Session
2024
HOUSE BILL 2091
An Act
amending sections 32-1104, 32-1122 and 32-1126, Arizona Revised Statutes; repealing section 41-3024.04, Arizona Revised Statutes; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3026.13; relating to the registrar of contractors agency.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Section 32-1104, Arizona Revised Statutes, is amended to read: START_STATUTE32-1104. Powers and duties A. The registrar, in addition to other duties and rights provided for in this chapter, shall: 1. Maintain an office in Phoenix and in such other cities and towns in the this state as the registrar deems advisable and necessary. 2. Maintain a complete indexed record of all applications and licenses that are issued, renewed, terminated, cancelled canceled, revoked or suspended under this chapter, including timely notation of any judicial disposition on appeal, for a period of not less than at least seven years. 3. Furnish a certified copy of any license issued or an affidavit that no license exists or that a license has been cancelled canceled or suspended, including information as to the status on appeal of such a cancellation or suspension, on receipt of the prescribed fee. , and That certified copy or affidavit shall be received in all courts and elsewhere as prima facie evidence of the facts stated therein in the certified copy or affidavit. The registrar shall also furnish certified copies of license bonds or cash deposit certificates on receipt of the prescribed fee. Fees charged pursuant to this paragraph are $10 per hour, except that the minimum fee charged pursuant to this paragraph is $10. 4. Employ such deputies, investigators and assistants subject to title 41, chapter 4, article 4, and procure such equipment and records, as are necessary to enforce this chapter. With respect to the enforcement of section 32-1164, the registrar or the registrar's investigators are vested with the authority to issue a citation to any violators of this chapter in accordance with section 13-3903. When the registrar or the registrar's investigators conduct investigations they are authorized to receive criminal history record information from the department of public safety and other law enforcement agencies. 5. Make rules the registrar deems necessary to effectually carry out the provisions and intent of this chapter. Such rules shall include the adoption of minimum standards for good and workmanlike construction. In adopting such rules of minimum standards, the registrar shall be guided by established usage and procedure as found in the construction business in this state. If the rules of minimum standards adopted by the registrar are in any manner inconsistent with a building or other code of this state, or a county, city or other political subdivision or local authority of this state, compliance with such code shall constitute good and workmanlike construction for the purposes of this chapter. 6. Apply the following to proposed rule changes: (a) The registrar of contractors, at the time the registrar files a notice of proposed rule change with the secretary of state in compliance with title 41, chapter 6, shall mail to each trade association that qualifies in accordance with subdivision (b) of this paragraph, and any other individual holding a bona fide contractor's license who qualifies in accordance with subdivision (b) of this paragraph, a copy of the notice of proposed rule change. (b) Every trade association in this state allied with the contracting business that files a written request that a notice be mailed to it and shows that the association has an interest in the rules of the registrar of contractors shall receive a copy thereof of the notice of proposed rule change, as set forth in subdivision (a) of this paragraph. Such filing of a request may be made every two years, and it shall contain information as to the nature of the association and its mailing address. Any duly licensed contractor who files a written request shall receive a copy of the proposed rule changes in accordance with this paragraph. Each such request may be made every two years. 7. Prepare and furnish decals and business management books when deemed advisable by the registrar. A reasonable fee may be charged for such decals and business management books. 8. Refer criminal violations of this chapter to the appropriate law enforcement agency or prosecuting authority. B. The registrar may develop and institute programs to do any of the following: 1. Educate the public and contractors licensed pursuant to this chapter regarding statutes, rules, policies and operations of the agency. 2. Assist in resolving disputes in an informal process before a reportable written complaint is filed. The registrar must notify the licensed contractor in an alleged dispute before a written complaint is filed and allow the contractor the opportunity to be present at any inspection regarding the alleged dispute. The registrar must give the contractor at least five days' notice before the inspection. Issues in the alleged dispute under this section shall not be limited in number and shall not be considered formal written complaints. The homeowner reserves the right to deny access to the contractor under this informal complaint process. The registrar must notify the contractor and the homeowner in writing of the registrar's findings within five days after the date of the inspection. The registrar may not post any information regarding the informal complaint process as part of a licensee's record on the registrar's website. 3. Develop, manage, operate and sponsor construction related construction-related programs that are designed to benefit the public in conjunction with other private and public entities. C. The registrar shall publicly post a list of applicants for a contractor license on its website for at least twenty days, commencing on the day designated by the registrar. The registrar shall issue a license if the applicant meets all requirements regardless of the twenty-day posting period. The registrar shall furnish copies of the posting list on written request. A reasonable charge, not to exceed $2 per month, may be made for compilation, printing and postage for the posting list. The list shall contain the following information: 1. The name and address of the applicant. 2. The names, addresses and official capacity of all persons required to sign the application under section 32-1122. D. The registrar may accept voluntary gifts, grants or matching monies from public agencies or enterprises for the conduct of programs that are authorized by this section or that are consistent with the purpose of this chapter. E. Notwithstanding any other law, the registrar may not spend public monies or use public resources on anything that is prohibited by section 41-1494. If the registrar violates this section, the registrar shall pay to the aggrieved EMPLOYEE an amount equal to the public monies that were spent or the value of the public RESOURCES that were used.END_STATUTE Sec. 2. Section 32-1122, Arizona Revised Statutes, is amended to read: START_STATUTE32-1122. Qualifications for license A. A contractor's license may be issued only by act of the registrar of contractors. The registrar shall: 1. Classify and qualify applicants for a license. 2. If necessary, change the license classification of a licensee in the case of a title reclassification, with or without a bond rider for the purpose of continuing liability on the bond. 3. Conduct investigations the registrar deems necessary. 4. Establish written examinations to protect the health and safety of the public. B. To obtain, renew or maintain a license under this chapter, the applicant or licensee shall: 1. Submit to the registrar of contractors a verified application on forms that are prescribed by the registrar of contractors and that contain the following information: (a) A designation of the classification of license that is sought by the applicant. (b) If the applicant is a sole proprietorship, the applicant's name and address. (c) If the applicant is a partnership, the names and addresses of all partners with a designation of any limited partners. (d) If the applicant is a limited liability company, the names and addresses of all of the following, as applicable: (i) If the applicant is a manager-managed limited liability company, all managers. (ii) If the applicant is a member-managed limited liability company, all members. (iii) All owners of twenty-five percent or more of the stock or beneficial interest. (e) If the applicant is a corporation, an association or any other organization, the names and addresses of all of the following: (i) The president, vice president, secretary and treasurer or the names and addresses of the functional equivalent of all of these officers. (ii) The directors. (iii) The owners of twenty-five percent or more of the stock or beneficial interest. (f) The name and address of the qualifying party. (g) If the applicant is a limited liability company or corporation, an attestation that the limited liability company or corporation is in good standing with the corporation commission. (h) The address or location of the applicant's place of business and the mailing address if it is different from the applicant's place of business. (i) An attestation that the applicant has complied with the statutes and rules governing workers' compensation insurance. If the applicant is required by law to secure workers' compensation insurance pursuant to title 23, chapter 6, the attestation must contain the workers' compensation insurance policy number or be accompanied by proof of self-insurance. (j) If the applicant is a trust, the names and addresses of all trustees. 2. Submit the appropriate fee required under this chapter. 3. Submit and maintain the appropriate bond required under this chapter. 4. Notify the registrar of any change in the information required by this section within thirty days after the change occurs. C. To obtain, renew or maintain a license under this chapter, each person who is named on a license must not have engaged in contracting without a license or committed any act that, if committed or done by any licensed contractor, would be grounds for suspension or revocation of a contractor's license or be named on a license that was suspended or revoked in this state or another state. D. To obtain a license under this chapter, a person may not have had a license denied, refused or revoked within one year before the person's application. The registrar may find circumstances behind the denial, refusal or revocation excusable if the applicant's actions did not result in an unremedied hardship or danger or loss to the public. A person who has been convicted of contracting without a license is not eligible to obtain a license under this chapter for one year after the date of the last conviction. E. Before a license is issued, the qualifying party must: 1. Have a minimum of four years' practical or management trade experience, at least two of which must have been within the last ten years, dealing specifically with the type of construction, or its equivalent, for which the applicant is applying for a license. Technical training in an accredited college or university or in a manufacturer's accredited training program may be substituted for a portion of such experience, but in no case may credited technical training exceed two years of the required four years' experience. The registrar of contractors may reduce the four years' practical or management experience requirement if in the registrar's opinion it has been conclusively shown by custom and usage in the particular industry or craft involved that the four-year requirement is excessive. The registrar shall waive the work experience documentation and verification if the records reflect that the qualifying party is currently or has previously been a qualifying party for a licensee in this state in the same classification and meets all other qualifications. 2. Successfully show, by written examination taken not more than two years before application, if required, qualification in the kind of work for which the applicant proposes to contract, the applicant's general knowledge of the building, safety, health and lien laws of the state, administrative principles of the contracting business and the rules adopted by the registrar of contractors pursuant to this chapter, demonstrate knowledge and understanding of construction plans and specifications applicable to the particular industry or craft and of the standards of construction work and techniques and practices in the particular industry or craft and demonstrate a general understanding of other related construction trades, in addition to any other matters as may be deemed appropriate by the registrar to determine that the qualifying party meets the requirements of this chapter. F. The registrar shall maintain multiple versions of examinations for each type of license that requires an examination. The registrar shall waive the examination requirement if the records reflect that the qualifying party is currently or has previously been a qualifying party for a licensee in this state in the same classification within the preceding five years. G. A license may not be issued to any of the following: 1. A minor, to any partnership in which one of the partners is a minor or to any corporation in which a corporate officer is a minor. 2. A person whose presence in the United States is not authorized under federal law. 3. A foreign national who has been paroled into the United States by the United States DEPARTMENT of homeland security. 4. A foreign national who has indicated an intention to apply for asylum in the United States but whose application has not been adjudicated in the affirmative. H. Before receiving, renewing and holding a license pursuant to this chapter, the registrar may require a license applicant or licensee to submit to the registrar a full set of fingerprints and the fees required in section 41-1750. The registrar shall submit the fingerprints and fees to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. END_STATUTE Sec. 3. Section 32-1126, Arizona Revised Statutes, is amended to read: START_STATUTE32-1126. Fees A. The license fees prescribed by this chapter are as follows: 1. Application and license fees for an original biennial license: (a) For general residential contracting and subclassifications of general residential contracting, not more than $500. (b) For general commercial contracting and subclassifications of general commercial contracting, not more than $1,500. (c) For general dual licensed contracting, not more than $2,000. (d) For specialty residential contracting, not more than $350. (e) For specialty commercial contracting, not more than $1,000. (f) For specialty dual licensed contracting, not more than $1,350. 2. Biennial license renewal fee fees: (a) For general residential contracting and subclassifications of general residential contracting, not more than $320. (b) For general commercial contracting and subclassifications of general commercial contracting, not more than $1,000. (c) For general dual licensed contracting, not more than $1,320. (d) For specialty residential contracting, not more than $270. (e) For specialty commercial contracting, not more than $900. (f) For specialty dual licensed contracting, not more than $1,170. B. The fee for an annual license renewal granted pursuant to section 32-1123.01 is one-half of the biennial license renewal fee. C. The registrar may establish reasonable fees for services performed by the registrar relating to reexaminations, processing of applications, changes of qualifying party and approval of name changes on licenses. D. The penalty for failure to apply for renewal of a license within the time prescribed by this chapter is $50. E. The registrar may establish a separate fee for examination. F. The registrar may contract with private testing services to establish and administer such examinations and may authorize the payment of the examination fee to the private testing service. G. Except as provided in section 32-1152, subsection C and subsection H of this section, a person applying for a contractor license or for renewal of a contractor license to engage in residential contracting shall pay an assessment of not more than $600 $370 for an initial license and $270 for license renewal during the biennial license period for deposit in the residential contractors' recovery fund established by section 32-1132. If the registrar does not issue the license, the assessment shall be returned to the applicant. H. If at the end of a fiscal year the amount of monies in the residential contractors' recovery fund established by section 32-1132 exceeds $15,000,000, the assessments prescribed in subsection G of this section shall be reduced by fifty percent until the amount of monies in the residential contractors' recovery fund at the end of a subsequent fiscal year is less than $10,000,000. At that time the assessments shall be reinstated to the full amounts prescribed in subsection G of this section. END_STATUTE Sec. 4. Repeal Section 41-3024.04, Arizona Revised Statutes, is repealed. Sec. 5. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3026.13, to read: START_STATUTE41-3026.13. Registrar of contractors agency; termination July 1, 2026 A. The registrar of contractors agency terminates on July 1, 2026. B. Title 32, chapter 10 AND THIS SECTION ARE repealed on January 1, 2027.END_STATUTE Sec. 6. Sunset termination; review; committees of reference Notwithstanding section 41-2953, Arizona Revised Statutes, the joint legislative audit committee shall direct the committees of reference to conduct the sunset review for the next sunset termination schedule that includes the registrar of contractors agency. Sec. 7. Registrar of contractors; legislation; commercial contractor removal The registrar of contractors shall draft proposed legislation to remove commercial contractors from its oversight and shall submit the proposed legislation to the president of the senate and the speaker of the house of representatives within one hundred eighty days after the effective date of this act. Sec. 8. Purpose Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the registrar of contractors agency to protect the public health, safety and welfare by licensing, bonding and regulating contractors engaged in construction and by administering the residential contractors' recovery fund. Sec. 9. Retroactivity Sections 4 and 5 of this act apply retroactively to from and after July 1, 2024.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 32-1104, Arizona Revised Statutes, is amended to read:
START_STATUTE32-1104. Powers and duties
A. The registrar, in addition to other duties and rights provided for in this chapter, shall:
1. Maintain an office in Phoenix and in such other cities and towns in the this state as the registrar deems advisable and necessary.
2. Maintain a complete indexed record of all applications and licenses that are issued, renewed, terminated, cancelled canceled, revoked or suspended under this chapter, including timely notation of any judicial disposition on appeal, for a period of not less than at least seven years.
3. Furnish a certified copy of any license issued or an affidavit that no license exists or that a license has been cancelled canceled or suspended, including information as to the status on appeal of such a cancellation or suspension, on receipt of the prescribed fee. , and That certified copy or affidavit shall be received in all courts and elsewhere as prima facie evidence of the facts stated therein in the certified copy or affidavit. The registrar shall also furnish certified copies of license bonds or cash deposit certificates on receipt of the prescribed fee. Fees charged pursuant to this paragraph are $10 per hour, except that the minimum fee charged pursuant to this paragraph is $10.
4. Employ such deputies, investigators and assistants subject to title 41, chapter 4, article 4, and procure such equipment and records, as are necessary to enforce this chapter. With respect to the enforcement of section 32-1164, the registrar or the registrar's investigators are vested with the authority to issue a citation to any violators of this chapter in accordance with section 13-3903. When the registrar or the registrar's investigators conduct investigations they are authorized to receive criminal history record information from the department of public safety and other law enforcement agencies.
5. Make rules the registrar deems necessary to effectually carry out the provisions and intent of this chapter. Such rules shall include the adoption of minimum standards for good and workmanlike construction. In adopting such rules of minimum standards, the registrar shall be guided by established usage and procedure as found in the construction business in this state. If the rules of minimum standards adopted by the registrar are in any manner inconsistent with a building or other code of this state, or a county, city or other political subdivision or local authority of this state, compliance with such code shall constitute good and workmanlike construction for the purposes of this chapter.
6. Apply the following to proposed rule changes:
(a) The registrar of contractors, at the time the registrar files a notice of proposed rule change with the secretary of state in compliance with title 41, chapter 6, shall mail to each trade association that qualifies in accordance with subdivision (b) of this paragraph, and any other individual holding a bona fide contractor's license who qualifies in accordance with subdivision (b) of this paragraph, a copy of the notice of proposed rule change.
(b) Every trade association in this state allied with the contracting business that files a written request that a notice be mailed to it and shows that the association has an interest in the rules of the registrar of contractors shall receive a copy thereof of the notice of proposed rule change, as set forth in subdivision (a) of this paragraph. Such filing of a request may be made every two years, and it shall contain information as to the nature of the association and its mailing address. Any duly licensed contractor who files a written request shall receive a copy of the proposed rule changes in accordance with this paragraph. Each such request may be made every two years.
7. Prepare and furnish decals and business management books when deemed advisable by the registrar. A reasonable fee may be charged for such decals and business management books.
8. Refer criminal violations of this chapter to the appropriate law enforcement agency or prosecuting authority.
B. The registrar may develop and institute programs to do any of the following:
1. Educate the public and contractors licensed pursuant to this chapter regarding statutes, rules, policies and operations of the agency.
2. Assist in resolving disputes in an informal process before a reportable written complaint is filed. The registrar must notify the licensed contractor in an alleged dispute before a written complaint is filed and allow the contractor the opportunity to be present at any inspection regarding the alleged dispute. The registrar must give the contractor at least five days' notice before the inspection. Issues in the alleged dispute under this section shall not be limited in number and shall not be considered formal written complaints. The homeowner reserves the right to deny access to the contractor under this informal complaint process. The registrar must notify the contractor and the homeowner in writing of the registrar's findings within five days after the date of the inspection. The registrar may not post any information regarding the informal complaint process as part of a licensee's record on the registrar's website.
3. Develop, manage, operate and sponsor construction related construction-related programs that are designed to benefit the public in conjunction with other private and public entities.
C. The registrar shall publicly post a list of applicants for a contractor license on its website for at least twenty days, commencing on the day designated by the registrar. The registrar shall issue a license if the applicant meets all requirements regardless of the twenty-day posting period. The registrar shall furnish copies of the posting list on written request. A reasonable charge, not to exceed $2 per month, may be made for compilation, printing and postage for the posting list. The list shall contain the following information:
1. The name and address of the applicant.
2. The names, addresses and official capacity of all persons required to sign the application under section 32-1122.
D. The registrar may accept voluntary gifts, grants or matching monies from public agencies or enterprises for the conduct of programs that are authorized by this section or that are consistent with the purpose of this chapter.
E. Notwithstanding any other law, the registrar may not spend public monies or use public resources on anything that is prohibited by section 41-1494. If the registrar violates this section, the registrar shall pay to the aggrieved EMPLOYEE an amount equal to the public monies that were spent or the value of the public RESOURCES that were used.END_STATUTE
Sec. 2. Section 32-1122, Arizona Revised Statutes, is amended to read:
START_STATUTE32-1122. Qualifications for license
A. A contractor's license may be issued only by act of the registrar of contractors. The registrar shall:
1. Classify and qualify applicants for a license.
2. If necessary, change the license classification of a licensee in the case of a title reclassification, with or without a bond rider for the purpose of continuing liability on the bond.
3. Conduct investigations the registrar deems necessary.
4. Establish written examinations to protect the health and safety of the public.
B. To obtain, renew or maintain a license under this chapter, the applicant or licensee shall:
1. Submit to the registrar of contractors a verified application on forms that are prescribed by the registrar of contractors and that contain the following information:
(a) A designation of the classification of license that is sought by the applicant.
(b) If the applicant is a sole proprietorship, the applicant's name and address.
(c) If the applicant is a partnership, the names and addresses of all partners with a designation of any limited partners.
(d) If the applicant is a limited liability company, the names and addresses of all of the following, as applicable:
(i) If the applicant is a manager-managed limited liability company, all managers.
(ii) If the applicant is a member-managed limited liability company, all members.
(iii) All owners of twenty-five percent or more of the stock or beneficial interest.
(e) If the applicant is a corporation, an association or any other organization, the names and addresses of all of the following:
(i) The president, vice president, secretary and treasurer or the names and addresses of the functional equivalent of all of these officers.
(ii) The directors.
(iii) The owners of twenty-five percent or more of the stock or beneficial interest.
(f) The name and address of the qualifying party.
(g) If the applicant is a limited liability company or corporation, an attestation that the limited liability company or corporation is in good standing with the corporation commission.
(h) The address or location of the applicant's place of business and the mailing address if it is different from the applicant's place of business.
(i) An attestation that the applicant has complied with the statutes and rules governing workers' compensation insurance. If the applicant is required by law to secure workers' compensation insurance pursuant to title 23, chapter 6, the attestation must contain the workers' compensation insurance policy number or be accompanied by proof of self-insurance.
(j) If the applicant is a trust, the names and addresses of all trustees.
2. Submit the appropriate fee required under this chapter.
3. Submit and maintain the appropriate bond required under this chapter.
4. Notify the registrar of any change in the information required by this section within thirty days after the change occurs.
C. To obtain, renew or maintain a license under this chapter, each person who is named on a license must not have engaged in contracting without a license or committed any act that, if committed or done by any licensed contractor, would be grounds for suspension or revocation of a contractor's license or be named on a license that was suspended or revoked in this state or another state.
D. To obtain a license under this chapter, a person may not have had a license denied, refused or revoked within one year before the person's application. The registrar may find circumstances behind the denial, refusal or revocation excusable if the applicant's actions did not result in an unremedied hardship or danger or loss to the public. A person who has been convicted of contracting without a license is not eligible to obtain a license under this chapter for one year after the date of the last conviction.
E. Before a license is issued, the qualifying party must:
1. Have a minimum of four years' practical or management trade experience, at least two of which must have been within the last ten years, dealing specifically with the type of construction, or its equivalent, for which the applicant is applying for a license. Technical training in an accredited college or university or in a manufacturer's accredited training program may be substituted for a portion of such experience, but in no case may credited technical training exceed two years of the required four years' experience. The registrar of contractors may reduce the four years' practical or management experience requirement if in the registrar's opinion it has been conclusively shown by custom and usage in the particular industry or craft involved that the four-year requirement is excessive. The registrar shall waive the work experience documentation and verification if the records reflect that the qualifying party is currently or has previously been a qualifying party for a licensee in this state in the same classification and meets all other qualifications.
2. Successfully show, by written examination taken not more than two years before application, if required, qualification in the kind of work for which the applicant proposes to contract, the applicant's general knowledge of the building, safety, health and lien laws of the state, administrative principles of the contracting business and the rules adopted by the registrar of contractors pursuant to this chapter, demonstrate knowledge and understanding of construction plans and specifications applicable to the particular industry or craft and of the standards of construction work and techniques and practices in the particular industry or craft and demonstrate a general understanding of other related construction trades, in addition to any other matters as may be deemed appropriate by the registrar to determine that the qualifying party meets the requirements of this chapter.
F. The registrar shall maintain multiple versions of examinations for each type of license that requires an examination. The registrar shall waive the examination requirement if the records reflect that the qualifying party is currently or has previously been a qualifying party for a licensee in this state in the same classification within the preceding five years.
G. A license may not be issued to any of the following:
1. A minor, to any partnership in which one of the partners is a minor or to any corporation in which a corporate officer is a minor.
2. A person whose presence in the United States is not authorized under federal law.
3. A foreign national who has been paroled into the United States by the United States DEPARTMENT of homeland security.
4. A foreign national who has indicated an intention to apply for asylum in the United States but whose application has not been adjudicated in the affirmative.
H. Before receiving, renewing and holding a license pursuant to this chapter, the registrar may require a license applicant or licensee to submit to the registrar a full set of fingerprints and the fees required in section 41-1750. The registrar shall submit the fingerprints and fees to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. END_STATUTE
Sec. 3. Section 32-1126, Arizona Revised Statutes, is amended to read:
START_STATUTE32-1126. Fees
A. The license fees prescribed by this chapter are as follows:
1. Application and license fees for an original biennial license:
(a) For general residential contracting and subclassifications of general residential contracting, not more than $500.
(b) For general commercial contracting and subclassifications of general commercial contracting, not more than $1,500.
(c) For general dual licensed contracting, not more than $2,000.
(d) For specialty residential contracting, not more than $350.
(e) For specialty commercial contracting, not more than $1,000.
(f) For specialty dual licensed contracting, not more than $1,350.
2. Biennial license renewal fee fees:
(a) For general residential contracting and subclassifications of general residential contracting, not more than $320.
(b) For general commercial contracting and subclassifications of general commercial contracting, not more than $1,000.
(c) For general dual licensed contracting, not more than $1,320.
(d) For specialty residential contracting, not more than $270.
(e) For specialty commercial contracting, not more than $900.
(f) For specialty dual licensed contracting, not more than $1,170.
B. The fee for an annual license renewal granted pursuant to section 32-1123.01 is one-half of the biennial license renewal fee.
C. The registrar may establish reasonable fees for services performed by the registrar relating to reexaminations, processing of applications, changes of qualifying party and approval of name changes on licenses.
D. The penalty for failure to apply for renewal of a license within the time prescribed by this chapter is $50.
E. The registrar may establish a separate fee for examination.
F. The registrar may contract with private testing services to establish and administer such examinations and may authorize the payment of the examination fee to the private testing service.
G. Except as provided in section 32-1152, subsection C and subsection H of this section, a person applying for a contractor license or for renewal of a contractor license to engage in residential contracting shall pay an assessment of not more than $600 $370 for an initial license and $270 for license renewal during the biennial license period for deposit in the residential contractors' recovery fund established by section 32-1132. If the registrar does not issue the license, the assessment shall be returned to the applicant.
H. If at the end of a fiscal year the amount of monies in the residential contractors' recovery fund established by section 32-1132 exceeds $15,000,000, the assessments prescribed in subsection G of this section shall be reduced by fifty percent until the amount of monies in the residential contractors' recovery fund at the end of a subsequent fiscal year is less than $10,000,000. At that time the assessments shall be reinstated to the full amounts prescribed in subsection G of this section. END_STATUTE
Sec. 4. Repeal
Section 41-3024.04, Arizona Revised Statutes, is repealed.
Sec. 5. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3026.13, to read:
START_STATUTE41-3026.13. Registrar of contractors agency; termination July 1, 2026
A. The registrar of contractors agency terminates on July 1, 2026.
B. Title 32, chapter 10 AND THIS SECTION ARE repealed on January 1, 2027.END_STATUTE
Sec. 6. Sunset termination; review; committees of reference
Notwithstanding section 41-2953, Arizona Revised Statutes, the joint legislative audit committee shall direct the committees of reference to conduct the sunset review for the next sunset termination schedule that includes the registrar of contractors agency.
Sec. 7. Registrar of contractors; legislation; commercial contractor removal
The registrar of contractors shall draft proposed legislation to remove commercial contractors from its oversight and shall submit the proposed legislation to the president of the senate and the speaker of the house of representatives within one hundred eighty days after the effective date of this act.
Sec. 8. Purpose
Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the registrar of contractors agency to protect the public health, safety and welfare by licensing, bonding and regulating contractors engaged in construction and by administering the residential contractors' recovery fund.
Sec. 9. Retroactivity
Sections 4 and 5 of this act apply retroactively to from and after July 1, 2024.