top border
border border
line
Arizona State Legislature
Capitol Roof picture
Forty-ninth Legislature - First Regular Session
 
 
HB2045 - 482R - I Ver

 

 

 

REFERENCE TITLE: handyman registration.

 

 

 

State of Arizona

House of Representatives

Forty-eighth Legislature

Second Regular Session

2008

 

 

HB 2045

 

Introduced by

Representative McClure, Senator O'Halleran: Representative Pearce

 

 

AN ACT

 

amending title 32, chapter 10, article 1, Arizona Revised Statutes, by adding section 32-1108; amending sections 32-1121 and 32-1165, Arizona Revised Statutes; relating to contractors.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 



Be it enacted by the Legislature of the State of Arizona:

Section 1.  Title 32, chapter 10, article 1, Arizona Revised Statutes, is amended by adding section 32-1108, to read:

START_STATUTE32-1108.  Handyman registration; filing fee; civil penalty

A.  A person who is exempt from licensure pursuant to section 32-1121, subsection A, paragraph 4, 9 or 14 and who is not licensed by the registrar pursuant to this chapter shall register with the registrar as a handyman if the person does any of the following:

1.  Installs or attaches finished products, materials or articles of merchandise if the total value of the sales contract or transaction involving these items and the cost of the installation or attachment of these items to the structure do not exceed one thousand dollars, including labor, materials and all other items, but excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet using a two pronged or three pronged electrical connector and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure.

2.  Sells or installs finished products, materials or articles of merchandise that are not fabricated into and do not become a permanent fixed part of the structure if the total price of the finished product, material or article of merchandise does not exceed one thousand dollars, including labor but excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet using a two pronged or three pronged electrical connector and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure.

3.  Engages in any work or operation on one undertaking or project by one or more contracts, for which the aggregate contract price, including labor, materials and all other items, but excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet using a two pronged or three pronged electrical connector and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure, does not exceed one thousand dollars.

4.  Remodels, repairs or improves an existing structure or appurtenance and the cost for labor and materials per project per dwelling or appurtenance does not exceed one thousand dollars.

B.  If a person is required to be registered pursuant to this section, the person shall file with the registrar all of the following:

1.  The person's name, address and telephone number.

2.  Proof that the person has a surety bond.

3.  A statement that the person is lawfully present in the United STates under federal law.

4.  A filing fee of forty-five dollars.

C.  Every person registered pursuant to this section shall notify the registrar in writing of any change in residence or office address and telephone number within thirty days after that change.  The registrar shall impose a civil penalty of no more than one thousand dollars per violation on a person who does not do any of the following:

1.  Register as prescribed by this section.

2.  Notify the registrar of a change in address or telephone number as required by this subsection.

3.  Maintain a surety bond. END_STATUTE

Sec. 2.  Section 32-1121, Arizona Revised Statutes, is amended to read:

START_STATUTE32-1121.  Persons not required to be licensed; penalties

A.  This chapter shall not be construed to apply to:

1.  An authorized representative of the United States government, this state or any county, incorporated city or town, reclamation district, irrigation district or other municipality or political subdivision of this state.

2.  Trustees of an express trust that is not formed for the purpose of conducting business as a contractor or officers of a court, if they are acting within the terms of their trust or office.

3.  Public utilities operating under regulation of the corporation commission or construction, repair or operation incidental to discovering or producing petroleum or gas, or the drilling, testing, abandoning or other operation of a petroleum or gas well, if performed by an owner or lessee.

4.  Except as otherwise provided in this paragraph, any materialman, manufacturer or retailer furnishing finished products, materials or articles of merchandise who does not install or attach such items or installs or attaches such items if the total value of the sales contract or transaction involving such items and the cost of the installation or attachment of such items to a structure does not exceed one thousand dollars, including labor, materials and all other items, but excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet utilizing a two pronged or three pronged electrical connector and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure.  The materialman, manufacturer or retailer shall inform the purchaser that the installation may also be performed by a licensed contractor whose name and address the purchaser may request.  A person who is exempt from licensure pursuant to this paragraph shall register with the registrar if required pursuant to section 32-1108.

5.  Owners of property who improve such property or who build or improve structures or appurtenances on such property and who do the work themselves, with their own employees or with duly licensed contractors, if the structure, group of structures or appurtenances, including the improvements thereto, are intended for occupancy solely by the owner and are not intended for occupancy by members of the public as the owner's employees or business visitors and the structures or appurtenances are not intended for sale or for rent.  In all actions brought under this chapter, proof of the sale or rent or the offering for sale or rent of any such structure by the owner‑builder within one year after completion or issuance of a certificate of occupancy is prima facie evidence that such project was undertaken for the purpose of sale or rent.  For the purposes of this paragraph, "sale" or "rent" includes any arrangement by which the owner receives compensation in money, provisions, chattels or labor from the occupancy or the transfer of the property or the structures on the property.

6.  Owners of property who are acting as developers and who build structures or appurtenances to structures on their property for the purpose of sale or rent and who contract for such a project with a general contractor licensed pursuant to this chapter and owners of property who are acting as developers, who improve structures or appurtenances to structures on their property for the purpose of sale or rent and who contract for such a project with a general contractor or specialty contractors licensed pursuant to this chapter.  To qualify for the exemption under this paragraph, the licensed contractors' names and license numbers shall be included in all sales documents.

7.  Architects or engineers who are engaging in their professional practice as defined in chapter 1 of this title and who hire or offer to hire the services of a contractor for preconstruction activities relating to investigation and discovery including:

(a)  Subsurface utility location and designation services.

(b)  Potholing.

(c)  Drilling for any of the following:

(i)  Soil samples.

(ii)  Rock samples.

(iii)  Pavement samples.

(d)  Locating existing features of a building or structure including existing electrical, mechanical, plumbing and structural members.

8.  A person licensed, certified or registered pursuant to chapter 22 of this title or a person working under the direct supervision of a person certified or qualified pursuant to chapter 22 of this title to the extent the person is engaged in structural pest control.

9.  Except as otherwise provided in this paragraph, the sale or installation of finished products, materials or articles of merchandise which are not fabricated into and do not become a permanent fixed part of the structure.  This exemption does not apply if a local building permit is required, if the total price of the finished product, material or article of merchandise, including labor but excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet utilizing a two pronged or three pronged electrical connector and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure, is more than one thousand dollars or if the removal of the finished product, material or article of merchandise causes damage to the structure or renders the structure unfit for its intended use.  A person who is exempt from licensure pursuant to this paragraph shall register with the registrar if required pursuant to section 32-1108.

10.  Employees of the owners of condominiums, townhouses, cooperative units or apartment complexes of four units or less or the owners' management agent or employees of the management agent repairing or maintaining structures owned by them.

11.  Any person who engages in the activities regulated by this chapter, as an employee of an exempt property owner or as an employee with wages as the person's sole compensation.

12.  A surety company or companies which are authorized to transact business in this state and which undertake to complete a contract on which they issued a performance or completion bond, provided all construction work is performed by duly licensed contractors.

13.  Insurance companies which are authorized to transact business in this state and which undertake to perform repairs resulting from casualty losses pursuant to the provisions of a policy, provided all construction work is performed by duly licensed contractors.

14.  Except as otherwise provided in this paragraph, any person other than a licensed contractor engaging in any work or operation on one undertaking or project by one or more contracts, for which the aggregate contract price, including labor, materials and all other items, but excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet utilizing a two pronged or three pronged electrical connector and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure, is less than does not exceed one thousand dollars.  The work or operations which are exempt under this paragraph shall be of a casual or minor nature.  A person who is exempt from licensure pursuant to this paragraph shall register with the registrar if required pursuant to section 32-1108.  This exemption does not apply:

(a)  In any case in which the performance of the work requires a local building permit.

(b)  In any case in which the work or construction is only a part of a larger or major operation, whether undertaken by the same or a different contractor, or in which a division of the operation is made in contracts of amounts less than that do not exceed one thousand dollars, excluding any electrical fixture or appliance that was designed by the manufacturer, that is unaltered, unchanged or unmodified by any person, that can be plugged into a common household electrical outlet utilizing a two pronged or three pronged electrical connector and that does not use any other form of energy, including natural gas, propane or other petroleum or gaseous fuel, to operate or is attached by a nail, screw or other fastening device to the frame or foundation of any residential structure, for the purpose of evasion of this chapter or otherwise.

(c)  To a person who utilizes any form of advertising to the public in which the person's unlicensed status is not disclosed by including the words "not a licensed contractor" in the advertisement.

15.  A person who is licensed, certified or registered pursuant to title 41, chapter 16 and who is not otherwise required to be licensed under this chapter or an employee of such person.

16.  A person who functions as a gardener by performing lawn, garden, shrub and tree maintenance.

B.  A person who is licensed to perform work in a particular trade pursuant to this chapter shall not be required to obtain and maintain a separate license for mechanical or structural service work performed within the scope of such trade by such person.

C.  Any person who does not have an exemption from licensure pursuant to subsection A, paragraph 14, subdivision (c) of this section is subject to prosecution for a violation of section 44‑1522.  The attorney general may investigate the act or practice and take appropriate action pursuant to title 44, chapter 10, article 7.

D.  All electrical, plumbing, air conditioning, heating, boiler, roofing and fire safety work shall be performed by a contractor appropriately licensed pursuant to this chapter and shall not be done by a person who is exempt from licensure pursuant to this section. END_STATUTE

Sec. 3.  Section 32-1165, Arizona Revised Statutes, is amended to read:

START_STATUTE32-1165.  Advertising; violation; classification

Except as authorized by section 32‑1121, subsection A, paragraph 14, subdivision (c), it is a class 1 misdemeanor for any person to advertise that he the person is able to perform any service or contract for compensation subject to regulation by the registrar under the terms of this chapter unless a license or registration under the terms of this chapter is first obtained regardless of whether his the person's operations as a contractor or handyman are otherwise exempt. END_STATUTE

Sec. 4.  Requirements for enactment; two-thirds vote

Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.