Assigned to GOV AS PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
FACT SHEET FOR H.B. 2091
registrar of contractors agency; continuation
Purpose
Continues the Arizona Registrar of Contractors (ROC) for two years and makes various
changes to the ROC statutes.
Background
Established in 1931, the ROC is a regulatory agency that licenses, regulates and conducts
examinations of residential and commercial contractors. The ROC oversees the agency’s
day-to-day operations. The ROC is appointed by the Governor with consent of the Senate and
serves at the pleasure of the Governor. The agency is self-funded, depositing 10 percent of its
revenues from fees, fines and interest into the state General Fund and 90 percent into its operational
ROC Fund.
The duties of the ROC include: 1) maintaining a complete indexed record of all
applications and licenses; 2) making rules deemed necessary to effectually carry out its regulatory
requirements; 3) preparing and furnishing decals and business management books when deemed
advisable; 4) administering oaths, certifying to official acts, issuing subpoenas for attendance of
witnesses and producing books, papers and records for any investigation, proceeding or hearing;
and 5) referring criminal violations of statute to the appropriate law enforcement agency or
prosecuting authority.
The ROC must also administer the Residential Contractors' Recovery Fund (Fund) for the
benefit of a claimant damaged by an act, representation, transaction or conduct of a licensed
residential contractor that is in violation of statutory rules or regulations relating to contractors
(A.R.S. Title 32, Ch. 10).
The House Commerce Committee of Reference (COR) held a public meeting on January
16, 2024, to conduct a sunset review of the ROC and recommended that the ROC be continued for
eight years, until July 1, 2032. The Senate Government COR held a public meeting on January 17,
2024, to conduct a sunset review of the ROC and recommended that the ROC be continued for
two years, until July 1, 2026 (Senate COR Report). The ROC terminates on July 1, 2024, unless
continued by the Legislature (A.R.S. § 41-3024.04).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Continues, retroactive to July 1, 2024, the ROC until July 1, 2026. FACT SHEET – Amended
H.B. 2091
Page 2
2. Repeals the ROC on January 1, 2027.
3. Requires the Joint Legislative Audit Committee (JLAC) to direct the CORs to conduct the
sunset review for the next sunset termination schedule that includes the ROC.
4. Prohibits the ROC from using public monies or resources on training, orientation or therapy
that presents any form of blame or judgment on the basis of race, ethnicity or sex.
5. Requires, if the ROC violates the prohibition relating to training, orientation or therapy, the
ROC to pay to an aggrieved employee an amount equal to the public monies that were spent
or the value of the public resources that were used.
6. Prohibits the ROC from issuing a license to:
a) a person whose presence in the United States is not authorized under federal law;
b) a foreign national who has been paroled into the United States by the U.S. Department of
Homeland Security; or
c) 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.
7. Reduces, the biennial Fund assessment from a maximum of $600 to an amount of $370 for
initial licensure and an amount of $270 for license renewal.
8. Requires the ROC, if the Fund balance exceeds $15,000,000 at the end of a fiscal year, to
reduce the biennial Fund assessments by 50 percent only until the Fund balance is less than
$10,000,000 at the end of a subsequent fiscal year.
9. Requires the ROC to draft proposed legislation to remove commercial contractors from its
oversight and submit the proposed legislation to the President of the Senate and the Speaker of
the House of Representatives within 180 days after the effective date.
10. Contains a purpose statement.
11. Makes technical and conforming changes.
12. Becomes effective on the general effective date, with a retroactive provision as noted.
Amendment Adopted by Committee
1. Decreases, from four years to two years, the continuation of the ROC.
2. Requires JLAC to direct the CORs to conduct the sunset review for the next sunset termination
schedule that includes the ROC.
3. Prohibits the ROC from using public monies or resources on training, orientation or therapy
that presents any form of blame or judgment on the basis of race, ethnicity or sex.
4. Requires, if the ROC violates the prohibition relating to training, orientation or therapy, the
ROC to pay to an aggrieved employee an amount equal to the public monies that were spent
or the value of the public resources that were used. FACT SHEET – Amended
H.B. 2091
Page 3
5. Prohibits the ROC from issuing a license to:
a) a person whose presence in the United States is not authorized under federal law;
b) a foreign national who has been paroled into the United States by the U.S. Department of
Homeland Security; or
c) 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.
6. Reduces, the biennial Fund assessment from a maximum of $600 to an amount of $370 for
initial licensure and an amount of $270 for license renewal.
7. Requires the ROC, if the Fund balance exceeds $15,000,000 at the end of a fiscal year, to
reduce the biennial Fund assessments by 50 percent only until the Fund balance is less than
$10,000,000 at the end of a subsequent fiscal year.
8. Requires the ROC to draft proposed legislation to remove commercial contractors from its
oversight and submit the proposed legislation to the President of the Senate and the Speaker of
the House of Representatives within 180 days after the general effective date.
9. Makes technical and conforming changes.
House Action Senate Action
RA 2/7/24 DPA 5-1-0-0 GOV 3/21/24 DPA 4-2-2
3
rd
Read 2/26/24 56-0-3-0-1
Prepared by Senate Research
March 22, 2024
JT/MA/cs/slp