| 1 | 1 | | REFERENCE TITLE: building permits; conditions; qualifications State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024 HB 2533 Introduced by Representative Sun An Act amending title 9, chapter 4, article 6.4, Arizona Revised Statutes, by adding section 9-469; amending title 11, chapter 2, article 9, Arizona Revised Statutes, by adding section 11-324; relating to building permits. (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 9 | 9 | | REFERENCE TITLE: building permits; conditions; qualifications |
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| 10 | 10 | | State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024 |
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| 11 | 11 | | HB 2533 |
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| 12 | 12 | | Introduced by Representative Sun |
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| 14 | 14 | | REFERENCE TITLE: building permits; conditions; qualifications |
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| 24 | 24 | | State of Arizona |
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| 26 | 26 | | House of Representatives |
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| 28 | 28 | | Fifty-sixth Legislature |
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| 30 | 30 | | Second Regular Session |
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| 32 | 32 | | 2024 |
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| 40 | 40 | | HB 2533 |
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| 44 | 44 | | Introduced by |
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| 46 | 46 | | Representative Sun |
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| 64 | 64 | | An Act |
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| 68 | 68 | | amending title 9, chapter 4, article 6.4, Arizona Revised Statutes, by adding section 9-469; amending title 11, chapter 2, article 9, Arizona Revised Statutes, by adding section 11-324; relating to building permits. |
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| 74 | 74 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 78 | 78 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Title 9, chapter 4, article 6.4, Arizona Revised Statutes, is amended by adding section 9-469, to read: START_STATUTE9-469. Building permits; qualifications; conditions; enforcement; violation; classification; definition A. The issuance of a city or town building permit for constructing, reconstructing, installing, demolishing, maintaining or repairing any commercial building estimated to cost at least $250,000 or a residential building with at least five units is conditioned on the contractor complying with the following qualifications and conditions at all times during the performance of work on the project: 1. The contractor has not been suspended from performing construction work by any federal, state or local government agency or authority in the previous three years. 2. The contractor has not been found within the past three years by a court or governmental agency in violation of any law relating to providing workers' compensation insurance coverage, misclassification of employees as independent contractors, payment of employer payroll taxes, employee income tax withholding, wage and hour laws, prompt payment laws or prevailing wage laws. 3. The contractor maintains appropriate workers' compensation insurance as required by title 23, chapter 6 and provides documentary proof of the coverage to the city or town to be maintained as a public record. 4. The contractor properly classifies employees as employees rather than independent contractors and treats them accordingly for purposes of minimum wage, overtime, workers' compensation insurance coverage, unemployment taxes, social Security taxes and state and federal income tax withholding. 5. The contractor maintains detailed payroll records and provides the records on the request of the city or town, attorney general or county attorney within five days after the request is made. 6. The contractor complies with title 23, chapter 2, article 7 relating to payment of wages. 7. The contractor pays contributions to the unemployment compensation fund established by section 23-701. B. If a person fails to comply with this section: 1. The permit is suspended by operation of law and all construction work on the entire project must immediately cease and desist on issuance of a stop work order issued by the city or town or its designee. 2. The city or town or its designee shall issue a stop work order with respect to all construction work on the entire project until the violation is remedied. If the city or town or its designee determines that the violation has been remedied, the city or town or its designee shall withdraw the stop work order and construction on the project may proceed. C. The applicant for the permit described in this section is responsible for ensuring that all contractors performing construction work on the property comply with the qualifications and conditions required by this section for the duration of the work on the project. D. The attorney general shall enforce this section and may refer enforcement to the county attorney in the county where the violation occurs. Notwithstanding any other law, any fines generated from an enforcement action due to a violation of this section may remain with the attorney general or with the county attorney who brought the enforcement action. E. A person is guilty of a class 6 felony for each violation of subsection A of this section. F. For the purposes of this section, "contractor" includes a construction manager, general contractor or other lead or prime contractor, or any entity functioning in such capacity, and any other contractor or subcontractor of any tier or other person that is engaged to perform the construction work on the property that is the subject of the permit. END_STATUTE Sec. 2. Title 11, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 11-324, to read: START_STATUTE11-324. Building permits; conditions; qualifications; enforcement; violation; classification; definition A. The issuance of a county building permit for constructing, reconstructing, installing, demolishing, maintaining or repairing any commercial building estimated to cost at least $250,000 or a residential building with at least five units is conditioned on the contractor complying with the following qualifications and conditions at all times during the performance of work on the project: 1. The contractor has not been suspended from performing construction work by any federal, state or local government agency or authority in the previous three years. 2. The contractor has not been found within the past THREE years by a court or governmental agency in violation of any law relating to providing workers' compensation insurance coverage, misclassification of employees as independent contractors, payment of employer payroll taxes, employee income tax withholding, wage and hour laws, prompt payment laws or prevailing wage laws. 3. The contractor maintains appropriate workers' compensation insurance as required by title 23, chapter 6 and provides documentary proof of the coverage to the county to be maintained as a public record. 4. The contractor properly classifies employees as employees rather than independent contractors and treats them accordingly for purposes of minimum wage, overtime, workers' compensation insurance coverage, unemployment taxes, social Security taxes and state and federal income tax withholding. 5. The contractor maintains detailed payroll records and provides the records on the request of the county, attorney general or county attorney within five days after the request is made. 6. The contractor complies with title 23, chapter 2, article 7 relating to payment of wages. 7. The contractor pays contributions to the unemployment compensation fund established by section 23-701. B. If a person fails to comply with this section: 1. The permit is suspended by operation of law and all construction work on the entire project must immediately cease and desist on issuance of a stop work order issued by the county or its designee. 2. The county or its designee shall issue a stop work order with respect to all construction work on the entire project until the violation is remedied. If the county or its designee determines that the violation has been remedied, the county or its designee shall withdraw the stop work order and construction on the project may proceed. C. The applicant for the permit described in this section is responsible for ensuring that all contractors performing construction work on the property comply with the qualifications and conditions required by this section for the duration of the work on the project. D. The attorney general shall enforce this section and may refer enforcement to the county attorney in the county where the violation occurs. Notwithstanding any other law, any fines generated from an enforcement action due to a violation of this section may remain with the attorney general or with the county attorney who brought the enforcement action. E. A person is guilty of a class 6 felony for each violation of subsection A of this section. F. For the purposes of this section, "contractor" includes a construction manager, general contractor or other lead or prime contractor, or any entity functioning in such capacity, and any other contractor or subcontractor of any tier or other person that is engaged to perform the construction work on the property that is the subject of the permit. END_STATUTE |
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| 80 | 80 | | Be it enacted by the Legislature of the State of Arizona: |
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| 82 | 82 | | Section 1. Title 9, chapter 4, article 6.4, Arizona Revised Statutes, is amended by adding section 9-469, to read: |
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| 84 | 84 | | START_STATUTE9-469. Building permits; qualifications; conditions; enforcement; violation; classification; definition |
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| 86 | 86 | | A. The issuance of a city or town building permit for constructing, reconstructing, installing, demolishing, maintaining or repairing any commercial building estimated to cost at least $250,000 or a residential building with at least five units is conditioned on the contractor complying with the following qualifications and conditions at all times during the performance of work on the project: |
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| 88 | 88 | | 1. The contractor has not been suspended from performing construction work by any federal, state or local government agency or authority in the previous three years. |
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| 90 | 90 | | 2. The contractor has not been found within the past three years by a court or governmental agency in violation of any law relating to providing workers' compensation insurance coverage, misclassification of employees as independent contractors, payment of employer payroll taxes, employee income tax withholding, wage and hour laws, prompt payment laws or prevailing wage laws. |
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| 92 | 92 | | 3. The contractor maintains appropriate workers' compensation insurance as required by title 23, chapter 6 and provides documentary proof of the coverage to the city or town to be maintained as a public record. |
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| 94 | 94 | | 4. The contractor properly classifies employees as employees rather than independent contractors and treats them accordingly for purposes of minimum wage, overtime, workers' compensation insurance coverage, unemployment taxes, social Security taxes and state and federal income tax withholding. |
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| 96 | 96 | | 5. The contractor maintains detailed payroll records and provides the records on the request of the city or town, attorney general or county attorney within five days after the request is made. |
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| 98 | 98 | | 6. The contractor complies with title 23, chapter 2, article 7 relating to payment of wages. |
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| 100 | 100 | | 7. The contractor pays contributions to the unemployment compensation fund established by section 23-701. |
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| 102 | 102 | | B. If a person fails to comply with this section: |
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| 104 | 104 | | 1. The permit is suspended by operation of law and all construction work on the entire project must immediately cease and desist on issuance of a stop work order issued by the city or town or its designee. |
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| 106 | 106 | | 2. The city or town or its designee shall issue a stop work order with respect to all construction work on the entire project until the violation is remedied. If the city or town or its designee determines that the violation has been remedied, the city or town or its designee shall withdraw the stop work order and construction on the project may proceed. |
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| 108 | 108 | | C. The applicant for the permit described in this section is responsible for ensuring that all contractors performing construction work on the property comply with the qualifications and conditions required by this section for the duration of the work on the project. |
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| 110 | 110 | | D. The attorney general shall enforce this section and may refer enforcement to the county attorney in the county where the violation occurs. Notwithstanding any other law, any fines generated from an enforcement action due to a violation of this section may remain with the attorney general or with the county attorney who brought the enforcement action. |
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| 112 | 112 | | E. A person is guilty of a class 6 felony for each violation of subsection A of this section. |
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| 114 | 114 | | F. For the purposes of this section, "contractor" includes a construction manager, general contractor or other lead or prime contractor, or any entity functioning in such capacity, and any other contractor or subcontractor of any tier or other person that is engaged to perform the construction work on the property that is the subject of the permit. END_STATUTE |
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| 116 | 116 | | Sec. 2. Title 11, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 11-324, to read: |
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| 118 | 118 | | START_STATUTE11-324. Building permits; conditions; qualifications; enforcement; violation; classification; definition |
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| 120 | 120 | | A. The issuance of a county building permit for constructing, reconstructing, installing, demolishing, maintaining or repairing any commercial building estimated to cost at least $250,000 or a residential building with at least five units is conditioned on the contractor complying with the following qualifications and conditions at all times during the performance of work on the project: |
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| 122 | 122 | | 1. The contractor has not been suspended from performing construction work by any federal, state or local government agency or authority in the previous three years. |
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| 124 | 124 | | 2. The contractor has not been found within the past THREE years by a court or governmental agency in violation of any law relating to providing workers' compensation insurance coverage, misclassification of employees as independent contractors, payment of employer payroll taxes, employee income tax withholding, wage and hour laws, prompt payment laws or prevailing wage laws. |
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| 126 | 126 | | 3. The contractor maintains appropriate workers' compensation insurance as required by title 23, chapter 6 and provides documentary proof of the coverage to the county to be maintained as a public record. |
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| 128 | 128 | | 4. The contractor properly classifies employees as employees rather than independent contractors and treats them accordingly for purposes of minimum wage, overtime, workers' compensation insurance coverage, unemployment taxes, social Security taxes and state and federal income tax withholding. |
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| 130 | 130 | | 5. The contractor maintains detailed payroll records and provides the records on the request of the county, attorney general or county attorney within five days after the request is made. |
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| 132 | 132 | | 6. The contractor complies with title 23, chapter 2, article 7 relating to payment of wages. |
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| 134 | 134 | | 7. The contractor pays contributions to the unemployment compensation fund established by section 23-701. |
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| 136 | 136 | | B. If a person fails to comply with this section: |
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| 138 | 138 | | 1. The permit is suspended by operation of law and all construction work on the entire project must immediately cease and desist on issuance of a stop work order issued by the county or its designee. |
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| 140 | 140 | | 2. The county or its designee shall issue a stop work order with respect to all construction work on the entire project until the violation is remedied. If the county or its designee determines that the violation has been remedied, the county or its designee shall withdraw the stop work order and construction on the project may proceed. |
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| 142 | 142 | | C. The applicant for the permit described in this section is responsible for ensuring that all contractors performing construction work on the property comply with the qualifications and conditions required by this section for the duration of the work on the project. |
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| 144 | 144 | | D. The attorney general shall enforce this section and may refer enforcement to the county attorney in the county where the violation occurs. Notwithstanding any other law, any fines generated from an enforcement action due to a violation of this section may remain with the attorney general or with the county attorney who brought the enforcement action. |
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| 146 | 146 | | E. A person is guilty of a class 6 felony for each violation of subsection A of this section. |
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| 148 | 148 | | F. For the purposes of this section, "contractor" includes a construction manager, general contractor or other lead or prime contractor, or any entity functioning in such capacity, and any other contractor or subcontractor of any tier or other person that is engaged to perform the construction work on the property that is the subject of the permit. END_STATUTE |
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