SB 1087
Initials PB Page 1 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
Senate: RAGE DP 4-3-0-0 | 3
rd
Read 16-14-0-0
SB 1087: residential contractor assessments; recovery fund
Sponsor: Senator Hoffman, LD 15
Committee on Commerce
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 which is deposited in the Recovery Fund (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 residential 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 residential real 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).
According to JLBC, the Recovery Fund year-end balance, FY 2024, is $27,569,100.
Provisions
1. Reduces biennial assessment amount that is paid into the Recovery Fund to:
a) $370 for an initial license; and
b) $270 for a license renewal. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1087
Initials PB Page 2 Commerce
2. Stipulates the biennial assessments are reduced by 50% if the Recovery Fund balance
exceeds $15,000,000 at the end of a fiscal year and are reinstated to the full amounts
when the balance is less than $10,000,000 at the end of a subsequent fiscal year. (Sec. 1)