Arizona 2024 Regular Session

Arizona House Bill HB2091 Compare Versions

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1-Senate Engrossed House Bill registrar of contractors agency; continuation (now: agency continuations; technical registration; contractors) State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024 CHAPTER 204 HOUSE BILL 2091 An Act amending section 32-106, Arizona Revised Statutes; repealing section 32-111, Arizona Revised Statutes; amending section 32-122.02, Arizona Revised Statutes; repealing sections 41-3024.04 and 41-3024.11, Arizona Revised Statutes; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding sections 41-3030.26 and 41-3032.04; relating to state agencies. (TEXT OF BILL BEGINS ON NEXT PAGE)
1+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)
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60-amending section 32-106, Arizona Revised Statutes; repealing section 32-111, Arizona Revised Statutes; amending section 32-122.02, Arizona Revised Statutes; repealing sections 41-3024.04 and 41-3024.11, Arizona Revised Statutes; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding sections 41-3030.26 and 41-3032.04; relating to state agencies.
59+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.
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70- Be it enacted by the Legislature of the State of Arizona: Section 1. Section 32-106, Arizona Revised Statutes, is amended to read: START_STATUTE32-106. Powers and duties A. The board shall: 1. Adopt rules for the conduct of conducting its meetings and performance of performing duties imposed on it by law. 2. Adopt an official seal for attestation of attesting certificates of registration and other official papers and documents. 3. Consider and act on or delegate the authority to act on applications for registration or certification. 4. Conduct examinations for in-training and professional registration, except for an alarm business, a controlling person or an alarm agent. 5. Hear and act on complaints or charges that are specified by the complainant or direct an administrative law judge to hear and act on complaints and charges that are specified by the complainant. 6. Compel attendance of witnesses, administer oaths and take testimony concerning all matters coming within its jurisdiction. In exercising these powers, the board may issue subpoenas for the attendance of witnesses and the production of books, records, documents and other evidence it deems relevant to an investigation or hearing. 7. Keep a record of its proceedings. 8. Keep a register that shows the date of each application for registration or certification, the name of the applicant, the practice or branch of practice in which the applicant has applied for registration, if applicable, and the disposition of the application. 9. Do other things necessary to carry out the purposes of this chapter. B. The board shall specify the proficiency designation in the branch of engineering in which the applicant has designated proficiency on the certificate of registration and renewal card issued to each registered engineer and shall authorize the engineer to use the title of registered professional engineer. The board shall decide what branches of engineering it shall recognize. C. THE BOARD MAY INVESTIGATE A COMPLAINT PURSUANT TO SUBSECTION A, PARAGRAPH 5 OF THIS SECTION AND MAY TAKE ANY NECESSARY DISCIPLINARY OR ENFORCEMENT ACTION RESULTING FROM A COMPLAINT ONLY IF THE COMPLAINANT EITHER: 1. 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. 2. WAS HARMED BY THE ALLEGED MISCONDUCT OR POSSESSES FIRSTHAND KNOWLEDGE OF THE ALLEGED MISCONDUCT. FOR THE PURPOSES OF THIS PARAGRAPH, "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. C. d. The board may hold membership in and be represented at national councils or organizations of proficiencies registered under this chapter and may pay the appropriate membership fees. The board may conduct standard examinations on behalf of national councils and may establish fees for those examinations. D. e. The board may employ and pay on a fee basis persons, including full-time employees of a state institution, bureau or department, to prepare and grade examinations given to applicants for registration or review an applicant's submissions of required documents for home inspector certification and regulation and may fix the fee to be paid for these services. These employees are authorized to prepare, grade and monitor examinations, review an applicant's submissions of required documents for home inspector certification and regulation and perform other services the board authorizes, and to receive payment for these services from the technical registration fund. The board may contract with an organization to administer the registration examination, including selecting the test site, scheduling the examination, billing and collecting the fee directly from the applicant and grading the examination if a national council of which the board is a member or a professional association approved by the board does not provide these services. If a national council of which the board is a member or a professional association approved by the board does provide these services, the board shall enter into an agreement with the national council or professional association to administer the registration examination. E. f. The board may rent necessary office space and pay the cost of this office space from the technical registration fund. F. g. The board may adopt rules establishing rules of professional conduct for registrants. G. h. The board may require evidence it deems necessary to establish the continuing competency of registrants as a condition of renewal of licenses. H. I. Subject to title 41, chapter 4, article 4, the board may employ persons as it deems necessary. I. j. The board shall issue or may authorize the executive director to issue a certificate or renewal certificate to each alarm business and each controlling person and a certification or renewal certification card to each alarm agent if the qualifications prescribed by this chapter are met. END_STATUTE Sec. 2. Repeal Section 32-111, Arizona Revised Statutes, is repealed. Sec. 3. Section 32-122.02, Arizona Revised Statutes, is amended to read: START_STATUTE32-122.02. Certification of home inspectors; insurance A. An applicant for certification as a home inspector shall: 1. Be at least eighteen years of age. 2. Have passed within two years preceding application a written examination that is approved by the board and that meets the competency standards recommended by the home inspector rules and standards committee and adopted by the board. 3. Have passed a course of study that meets the standards recommended by the home inspector rules and standards committee and approved by the board. 4. Pay a fee as determined by the board and for initial certification shall provide to the board evidence of having a valid fingerprint clearance card issued pursuant to title 41, chapter 12, article 3.1. 5. Not have had a certificate denied or revoked pursuant to this chapter within one year immediately preceding the application. 6. Have received an absolute discharge from sentence at least five years before the application if the person has been convicted of one or more felonies. 7. Provide evidence of the applicant's ability to obtain financial assurance as provided by subsection B of this section. B. Within sixty days after certification and before any fee-based home inspection is performed, a home inspector certified pursuant to this chapter shall file one of the following financial assurances pursuant to rules recommended by the home inspector rules and standards committee and adopted by the board: 1. Errors and omissions insurance for negligent acts committed in the course of a home inspection in an amount of $200,000 in the aggregate and $100,000 per occurrence. 2. A bond that is retroactive to the certification date in the amount of $25,000 or proof that minimum net assets have a value of at least $25,000. C. If a home inspector loses or otherwise fails to maintain a required financial assurance, the certification shall be automatically suspended and shall be reinstated if a financial assurance is obtained within ninety days. If a financial assurance is not obtained within ninety days, the certification shall be automatically revoked. D. A home inspector is subject to this chapter and rules adopted pursuant to this chapter. E. Except as provided in subsection A, paragraph 4 of this section, the board may not require the submission of a fingerprint clearance card for certification renewal or any other purpose. END_STATUTE Sec. 4. Repeal Sections 41-3024.04 and 41-3024.11, Arizona Revised Statutes, are repealed. Sec. 5. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding sections 41-3030.26 and 41-3032.04, to read: START_STATUTE41-3030.26. Board of technical registration; termination July 1, 2030 A. THE BOARD OF TECHNICAL REGISTRATION TERMINATES ON JULY 1, 2030. B. TITLE 32, CHAPTER 1 AND THIS SECTION ARE REPEALED ON JANUARY 1, 2031. END_STATUTE START_STATUTE41-3032.04 Registrar of contractors agency; termination July 1, 2032 A. The registrar of contractors agency terminates on July 1, 2032. B. Title 32, chapter 10 AND THIS SECTION ARE repealed on January 1, 2033. END_STATUTE Sec. 6. Registrar of contractors; study; commercial contractor oversight The registrar of contractors shall study and compile a report on commercial contractors to determine whether opportunities exist to statutorily remove the agency's oversight of the commercial contracting profession. The registrar of contractors shall submit its findings to the president of the senate and the speaker of the house of representatives on or before December 31, 2024. Sec. 7. Purpose Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the board of technical registration to protect the public safety and welfare by regulating architects, engineers, geologists, home inspectors, landscape architects and land surveyors. 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.
69+ 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.
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7271 Be it enacted by the Legislature of the State of Arizona:
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74-Section 1. Section 32-106, Arizona Revised Statutes, is amended to read:
73+Section 1. Section 32-1104, Arizona Revised Statutes, is amended to read:
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75+START_STATUTE32-1104. Powers and duties
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78-A. The board shall:
77+A. The registrar, in addition to other duties and rights provided for in this chapter, shall:
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80-1. Adopt rules for the conduct of conducting its meetings and performance of performing duties imposed on it by law.
79+1. Maintain an office in Phoenix and in such other cities and towns in the this state as the registrar deems advisable and necessary.
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82-2. Adopt an official seal for attestation of attesting certificates of registration and other official papers and documents.
81+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.
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84-3. Consider and act on or delegate the authority to act on applications for registration or certification.
83+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.
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86-4. Conduct examinations for in-training and professional registration, except for an alarm business, a controlling person or an alarm agent.
85+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.
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88-5. Hear and act on complaints or charges that are specified by the complainant or direct an administrative law judge to hear and act on complaints and charges that are specified by the complainant.
87+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.
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90-6. Compel attendance of witnesses, administer oaths and take testimony concerning all matters coming within its jurisdiction. In exercising these powers, the board may issue subpoenas for the attendance of witnesses and the production of books, records, documents and other evidence it deems relevant to an investigation or hearing.
89+6. Apply the following to proposed rule changes:
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92-7. Keep a record of its proceedings.
91+(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.
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94-8. Keep a register that shows the date of each application for registration or certification, the name of the applicant, the practice or branch of practice in which the applicant has applied for registration, if applicable, and the disposition of the application.
93+(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.
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96-9. Do other things necessary to carry out the purposes of this chapter.
95+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.
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98-B. The board shall specify the proficiency designation in the branch of engineering in which the applicant has designated proficiency on the certificate of registration and renewal card issued to each registered engineer and shall authorize the engineer to use the title of registered professional engineer. The board shall decide what branches of engineering it shall recognize.
97+8. Refer criminal violations of this chapter to the appropriate law enforcement agency or prosecuting authority.
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100-C. THE BOARD MAY INVESTIGATE A COMPLAINT PURSUANT TO SUBSECTION A, PARAGRAPH 5 OF THIS SECTION AND MAY TAKE ANY NECESSARY DISCIPLINARY OR ENFORCEMENT ACTION RESULTING FROM A COMPLAINT ONLY IF THE COMPLAINANT EITHER:
99+B. The registrar may develop and institute programs to do any of the following:
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102-1. 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.
101+1. Educate the public and contractors licensed pursuant to this chapter regarding statutes, rules, policies and operations of the agency.
103102
104-2. WAS HARMED BY THE ALLEGED MISCONDUCT OR POSSESSES FIRSTHAND KNOWLEDGE OF THE ALLEGED MISCONDUCT. FOR THE PURPOSES OF THIS PARAGRAPH, "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.
103+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.
105104
106-C. d. The board may hold membership in and be represented at national councils or organizations of proficiencies registered under this chapter and may pay the appropriate membership fees. The board may conduct standard examinations on behalf of national councils and may establish fees for those examinations.
105+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.
107106
108-D. e. The board may employ and pay on a fee basis persons, including full-time employees of a state institution, bureau or department, to prepare and grade examinations given to applicants for registration or review an applicant's submissions of required documents for home inspector certification and regulation and may fix the fee to be paid for these services. These employees are authorized to prepare, grade and monitor examinations, review an applicant's submissions of required documents for home inspector certification and regulation and perform other services the board authorizes, and to receive payment for these services from the technical registration fund. The board may contract with an organization to administer the registration examination, including selecting the test site, scheduling the examination, billing and collecting the fee directly from the applicant and grading the examination if a national council of which the board is a member or a professional association approved by the board does not provide these services. If a national council of which the board is a member or a professional association approved by the board does provide these services, the board shall enter into an agreement with the national council or professional association to administer the registration examination.
107+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:
109108
110-E. f. The board may rent necessary office space and pay the cost of this office space from the technical registration fund.
109+1. The name and address of the applicant.
111110
112-F. g. The board may adopt rules establishing rules of professional conduct for registrants.
111+2. The names, addresses and official capacity of all persons required to sign the application under section 32-1122.
113112
114-G. h. The board may require evidence it deems necessary to establish the continuing competency of registrants as a condition of renewal of licenses.
113+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.
115114
116-H. I. Subject to title 41, chapter 4, article 4, the board may employ persons as it deems necessary.
115+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
117116
118-I. j. The board shall issue or may authorize the executive director to issue a certificate or renewal certificate to each alarm business and each controlling person and a certification or renewal certification card to each alarm agent if the qualifications prescribed by this chapter are met. END_STATUTE
117+Sec. 2. Section 32-1122, Arizona Revised Statutes, is amended to read:
119118
120-Sec. 2. Repeal
119+START_STATUTE32-1122. Qualifications for license
121120
122-Section 32-111, Arizona Revised Statutes, is repealed.
121+A. A contractor's license may be issued only by act of the registrar of contractors. The registrar shall:
123122
124-Sec. 3. Section 32-122.02, Arizona Revised Statutes, is amended to read:
123+1. Classify and qualify applicants for a license.
125124
126-START_STATUTE32-122.02. Certification of home inspectors; insurance
125+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.
127126
128-A. An applicant for certification as a home inspector shall:
127+3. Conduct investigations the registrar deems necessary.
129128
130-1. Be at least eighteen years of age.
129+4. Establish written examinations to protect the health and safety of the public.
131130
132-2. Have passed within two years preceding application a written examination that is approved by the board and that meets the competency standards recommended by the home inspector rules and standards committee and adopted by the board.
131+B. To obtain, renew or maintain a license under this chapter, the applicant or licensee shall:
133132
134-3. Have passed a course of study that meets the standards recommended by the home inspector rules and standards committee and approved by the board.
133+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:
135134
136-4. Pay a fee as determined by the board and for initial certification shall provide to the board evidence of having a valid fingerprint clearance card issued pursuant to title 41, chapter 12, article 3.1.
135+(a) A designation of the classification of license that is sought by the applicant.
137136
138-5. Not have had a certificate denied or revoked pursuant to this chapter within one year immediately preceding the application.
137+(b) If the applicant is a sole proprietorship, the applicant's name and address.
139138
140-6. Have received an absolute discharge from sentence at least five years before the application if the person has been convicted of one or more felonies.
139+(c) If the applicant is a partnership, the names and addresses of all partners with a designation of any limited partners.
141140
142-7. Provide evidence of the applicant's ability to obtain financial assurance as provided by subsection B of this section.
141+(d) If the applicant is a limited liability company, the names and addresses of all of the following, as applicable:
143142
144-B. Within sixty days after certification and before any fee-based home inspection is performed, a home inspector certified pursuant to this chapter shall file one of the following financial assurances pursuant to rules recommended by the home inspector rules and standards committee and adopted by the board:
143+(i) If the applicant is a manager-managed limited liability company, all managers.
145144
146-1. Errors and omissions insurance for negligent acts committed in the course of a home inspection in an amount of $200,000 in the aggregate and $100,000 per occurrence.
145+(ii) If the applicant is a member-managed limited liability company, all members.
147146
148-2. A bond that is retroactive to the certification date in the amount of $25,000 or proof that minimum net assets have a value of at least $25,000.
147+(iii) All owners of twenty-five percent or more of the stock or beneficial interest.
149148
150-C. If a home inspector loses or otherwise fails to maintain a required financial assurance, the certification shall be automatically suspended and shall be reinstated if a financial assurance is obtained within ninety days. If a financial assurance is not obtained within ninety days, the certification shall be automatically revoked.
149+(e) If the applicant is a corporation, an association or any other organization, the names and addresses of all of the following:
151150
152-D. A home inspector is subject to this chapter and rules adopted pursuant to this chapter.
151+(i) The president, vice president, secretary and treasurer or the names and addresses of the functional equivalent of all of these officers.
153152
154-E. Except as provided in subsection A, paragraph 4 of this section, the board may not require the submission of a fingerprint clearance card for certification renewal or any other purpose. END_STATUTE
153+(ii) The directors.
154+
155+(iii) The owners of twenty-five percent or more of the stock or beneficial interest.
156+
157+(f) The name and address of the qualifying party.
158+
159+(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.
160+
161+(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.
162+
163+(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.
164+
165+(j) If the applicant is a trust, the names and addresses of all trustees.
166+
167+2. Submit the appropriate fee required under this chapter.
168+
169+3. Submit and maintain the appropriate bond required under this chapter.
170+
171+4. Notify the registrar of any change in the information required by this section within thirty days after the change occurs.
172+
173+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.
174+
175+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.
176+
177+E. Before a license is issued, the qualifying party must:
178+
179+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.
180+
181+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.
182+
183+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.
184+
185+G. A license may not be issued to any of the following:
186+
187+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.
188+
189+2. A person whose presence in the United States is not authorized under federal law.
190+
191+3. A foreign national who has been paroled into the United States by the United States DEPARTMENT of homeland security.
192+
193+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.
194+
195+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
196+
197+Sec. 3. Section 32-1126, Arizona Revised Statutes, is amended to read:
198+
199+START_STATUTE32-1126. Fees
200+
201+A. The license fees prescribed by this chapter are as follows:
202+
203+1. Application and license fees for an original biennial license:
204+
205+(a) For general residential contracting and subclassifications of general residential contracting, not more than $500.
206+
207+(b) For general commercial contracting and subclassifications of general commercial contracting, not more than $1,500.
208+
209+(c) For general dual licensed contracting, not more than $2,000.
210+
211+(d) For specialty residential contracting, not more than $350.
212+
213+(e) For specialty commercial contracting, not more than $1,000.
214+
215+(f) For specialty dual licensed contracting, not more than $1,350.
216+
217+2. Biennial license renewal fee fees:
218+
219+(a) For general residential contracting and subclassifications of general residential contracting, not more than $320.
220+
221+(b) For general commercial contracting and subclassifications of general commercial contracting, not more than $1,000.
222+
223+(c) For general dual licensed contracting, not more than $1,320.
224+
225+(d) For specialty residential contracting, not more than $270.
226+
227+(e) For specialty commercial contracting, not more than $900.
228+
229+(f) For specialty dual licensed contracting, not more than $1,170.
230+
231+B. The fee for an annual license renewal granted pursuant to section 32-1123.01 is one-half of the biennial license renewal fee.
232+
233+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.
234+
235+D. The penalty for failure to apply for renewal of a license within the time prescribed by this chapter is $50.
236+
237+E. The registrar may establish a separate fee for examination.
238+
239+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.
240+
241+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.
242+
243+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
155244
156245 Sec. 4. Repeal
157246
158-Sections 41-3024.04 and 41-3024.11, Arizona Revised Statutes, are repealed.
247+Section 41-3024.04, Arizona Revised Statutes, is repealed.
159248
160-Sec. 5. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding sections 41-3030.26 and 41-3032.04, to read:
249+Sec. 5. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3026.13, to read:
161250
162-START_STATUTE41-3030.26. Board of technical registration; termination July 1, 2030
251+START_STATUTE41-3026.13. Registrar of contractors agency; termination July 1, 2026
163252
164-A. THE BOARD OF TECHNICAL REGISTRATION TERMINATES ON JULY 1, 2030.
253+A. The registrar of contractors agency terminates on July 1, 2026.
165254
166-B. TITLE 32, CHAPTER 1 AND THIS SECTION ARE REPEALED ON JANUARY 1, 2031. END_STATUTE
255+B. Title 32, chapter 10 AND THIS SECTION ARE repealed on January 1, 2027.END_STATUTE
167256
168-START_STATUTE41-3032.04 Registrar of contractors agency; termination July 1, 2032
257+Sec. 6. Sunset termination; review; committees of reference
169258
170-A. The registrar of contractors agency terminates on July 1, 2032.
259+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.
171260
172-B. Title 32, chapter 10 AND THIS SECTION ARE repealed on January 1, 2033. END_STATUTE
261+Sec. 7. Registrar of contractors; legislation; commercial contractor removal
173262
174-Sec. 6. Registrar of contractors; study; commercial contractor oversight
175-
176-The registrar of contractors shall study and compile a report on commercial contractors to determine whether opportunities exist to statutorily remove the agency's oversight of the commercial contracting profession. The registrar of contractors shall submit its findings to the president of the senate and the speaker of the house of representatives on or before December 31, 2024.
177-
178-Sec. 7. Purpose
179-
180-Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the board of technical registration to protect the public safety and welfare by regulating architects, engineers, geologists, home inspectors, landscape architects and land surveyors.
263+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.
181264
182265 Sec. 8. Purpose
183266
184267 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.
185268
186269 Sec. 9. Retroactivity
187270
188271 Sections 4 and 5 of this act apply retroactively to from and after July 1, 2024.
189-
190- APPROVED BY THE GOVERNOR JUNE 18, 2024. FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 18, 2024.
191-
192-
193-
194-
195-
196-
197-
198-APPROVED BY THE GOVERNOR JUNE 18, 2024.
199-
200-
201-
202-FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 18, 2024.