Assigned to GOV AS PASSED BY ADD COW ARIZONA STATE SENATE Fifty-Sixth Legislature, Second Regular Session AMENDED FACT SHEET FOR H.B. 2091 registrar of contractors agency; continuation (NOW: agency continuations; technical registration; contractors) Purpose Continues the Arizona Board of Technical Registration (AZBTR) and the Arizona Registrar of Contractors (ROC). Modifies the powers and duties of the AZBTR. Background The AZBTR was established in 1921 with the purpose to provide for the safety, health and welfare of the public through the promulgation and enforcement of standards of qualification for certain technical professions. These professions currently include architects, engineers, geologists, land surveyors, landscape architects, home inspectors and alarm agents. The Governor appoints the 11-member board consisting of 1 architect, 1 professional engineer, 1 landscape architect, 1 geologist, 1 land surveyor and 6 public members with at least 1 of whom must have a legal, construction or design product background. The AZBTR's duties include: 1) adopting rules for conducting its meetings and performance of duties; 2) considering and acting on applications for registration or certification; 3) conducting examinations for in-training and professional registration; 4) hearing and acting on complaints or charges or direct an administrative law judge to hear and act on complaints and charges; 5) compelling attendance of witnesses, administering oaths and taking testimony concerning all matters coming within its jurisdiction; 6) keeping records of its proceedings and a register for registrations or certifications; and 7) doing all other things necessary to carry out its purpose (A.R.S. Title 32, Ch. 1). Established in 1931, the ROC is a regulatory agency that licenses, regulates and conducts examinations of residential and commercial contractors. 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 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 AZBTR and ROC are set to terminate on July 1, 2024, unless continued by the Legislature (A.R.S. §§ 41-3024.04 and 41-3024.11). There is no anticipated fiscal impact to the state General Fund associated with this legislation. FACT SHEET – Amended H.B. 2091 Page 2 Provisions Agency Continuations 1. Continues, retroactive to July 1, 2024, the AZBTR until July 1, 2030. 2. Repeals the AZBTR on January 1, 2031. 3. Continues, retroactive to July 1, 2024, the ROC until July 1, 2032. 4. Repeals the ROC on January 1, 2033. 5. Contains purpose statements. AZBTR 6. Specifies that the AZBTR may only hear and act on complaints or charges that are specified by the complainant. 7. Removes the authority for the AZBTR to do all other things necessary to carry out the propose of regulating technical registrants. 8. Allows the AZBTR to investigate a complaint and take any necessary disciplinary or enforcement action resulting from a complaint only if the complainant either: a) currently has a contractual relationship with the person who is the subject of the complaint or had a contractual relationship with the person at the time of the alleged misconduct; or b) was harmed by the alleged misconduct or possesses firsthand knowledge of the alleged misconduct. 9. Stipulates that firsthand knowledge includes knowledge of the outcome of the misconduct, witnessed by a person with relevant professional experience in the course of that person’s contractual duties with the harmed individual. 10. Eliminates the Home Inspectors Rules and Standards Committee. ROC 11. Requires the ROC to study and compile a report on commercial contracts to determine whether opportunities exist to statutorily remove the agency's oversight of the commercial contraction profession. 12. Requires the ROC to submit the findings to the President of the Senate and Speaker of the House of Representatives by December 31, 2024. Miscellaneous 11. Makes technical and conforming changes. 12. Becomes effective on the general effective date, with a retroactive provision as noted. FACT SHEET – Amended H.B. 2091 Page 3 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. 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. Amendments Adopted by Additional Committee of the Whole 1. Continues, retroactive to July 1, 2024, the AZBTR until July 1, 2030. 2. Repeals the AZBTR on January 1, 2031. 3. Continues, retroactive to July 1, 2024, the ROC until July 1, 2032, rather than July 1, 2026. 4. Specifies that the AZBTR may only hear and act on complaints or charges that are specified by the complainant. 5. Removes the authority for the AZBTR to do all other things necessary to carry out the propose of regulating technical registrants. FACT SHEET – Amended H.B. 2091 Page 4 6. Allows the AZBTR to investigate a complaint and take any necessary disciplinary or enforcement action resulting from a complaint only if the complainant either: a) currently has a contractual relationship with the person who is the subject of the complaint or had a contractual relationship with the person at the time of the alleged misconduct; or b) was harmed by the alleged misconduct or possesses firsthand knowledge of the alleged misconduct. 7. Stipulates that firsthand knowledge includes knowledge of the outcome of the misconduct, witnessed by a person with relevant professional experience in the course of that person’s contractual duties with the harmed individual. 8. Eliminates the Home Inspectors Rules and Standards Committee. 9. Removes the prohibition on the ROC from spending public monies or using public resources on training, orientation or therapy that presents any form of blame or judgement on the basis of race, ethnicity or sex. 10. Removes the prohibition on 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. 11. Removes the requirement for the ROC to reduce the Residential Contractors' Recovery Fund assessment if the Fund exceeds $15,000,000 at the end of a fiscal year. 12. Requires the ROC to study and compile a report, rather than draft proposed legislation, on commercial contracts to determine whether opportunities exist to statutorily remove the agency's oversight of the commercial contraction profession. 13. Requires the ROC to submit the findings to the President of the Senate and the Speaker of the House of Representatives by December 31, 2024. 14. Eliminates the requirement for the Joint Legislative Audit Committee to direct the committees of reference to conduct sunset review of the ROC for the next termination schedule. 15. 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 3 rd Read 6/12/24 15-13-2 Prepared by Senate Research June 14, 2024 JT/MA/cs/slp