SB 1291
Initials DC/RP Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
Senate: FICO DP 4-2-1 | 3rd Read 16-9-5-0
House: RA DP 4-2-0-1
SB 1291: residential contractor assessments; recovery fund
Sponsor: Senator Hoffman, LD 15
Caucus & COW
Overview
Reduces the amount that the Registrar of Contractors (ROC) can charge for an initial or
renewal biennial assessment by 50% when the amount in the Residential Contractors'
Recovery Fund (Recovery Fund) exceeds $15,000,000.
History
The ROC licenses and regulates residential and commercial contractors, investigates
complaints against contractors and is authorized to suspend or revoke licenses, conduct
hearings, issue citations and assess civil penalties. The ROC is permitted to charge
application and license fees for the issuance and renewal of specified biennial contracting
licenses. Statute requires an applicant for an initial or renewal contractor license to pay an
assessment that cannot exceed $600 (Title 32, Chapter 10, A.R.S.).
The Recovery Fund is administered by the ROC for the benefit of claimants damaged by an
act, representation, transaction or conduct of a licensed registered contractor that is in
violation of statutory rules or regulations relating to contractors. The following claimants are
eligible for awards from the Recovery Fund for damages to a residential real property that is
damaged by the failure of a residential contractor to adequately build or improve a residential
structure or appurtenance: 1) individuals that own and occupy or intend to occupy the
residential real property; 2) a limited liability company that owns the residential real
property and the property is occupied by one of the company's members; 3) a revocable living
trust that owns the residential real property and whose trustors occupy or intend to occupy
the property; 4) a planned community or condominium owners' association; and 5) a lessee
that occupies or intends to occupy the residential real property and contracts directly with a
residential contractor or indirectly with a subcontractor. An award from the recovery fund
cannot exceed the actual damages suffered by the claimant. The maximum amount an
individual claimant can be awarded from the Recovery Fund is $30,000 (A.R.S. §§ 32-1132,
32-1132.01).
Provisions
1. Changes the current $600 biennial assessment amount that is paid into the Recovery
Fund for residential contracting as follows:
a) an assessment of $370 for an initial license; and
b) an assessment of $270 for a license renewal. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1291
Initials DC/RP Page 2 Caucus & COW
2. States that if the Recovery Fund exceeds $15,000,000 at the end of the fiscal year (FY),
then the assessments reduce by 50% until the total in a subsequent FY is less than
$10,000,000 at which time the 100% assessment is reinstated. (Sec. 1)
3. Makes technical and conforming changes. (Sec. 1)