Assigned to CED                                                                                                  FOR CAUCUS & FLOOR ACTION

ARIZONA STATE SENATE

Forty-seventh Legislature, Second Regular Session

AMENDED

FACT SHEET FOR H.B. 2585

contractors; licensure; appliance exemption

(NOW: contractors; appliance exemption; licensure)

Purpose

            Increases the handyman exemption threshold from $750 to $1,000 and excludes the value of any electrical fixture or appliance that meets specified requirements from the threshold amount.

Background

            The Registrar of Contractors (ROC) is responsible for testing, licensing and regulating both residential and commercial contractors and resolving consumer complaints against licensed and unlicensed contractors.  Within the commercial, residential and dual license categories are several license classifications, including more than 100 specialty trade classifications such as home painting, roofing or tiling. One of these special trade licenses is the minor home improvement license.  A minor home improvement license is classified as a C-62 license under the ROC’s license classification. C-62 license applicants must pay a $320 application fee and a $63 exam fee and file a license bond for anywhere from $1,000 to $7,500. Applicants are also required to provide a consumer protection bond either in the form of a $200,000 consumer bond or a $450 payment to the ROC Recovery Fund.

            C-62 licenses are offered to people involved with remodeling, repairs and improvements to existing structures or appurtenances not to exceed $2,500 for labor and materials per project per dwelling or appurtenance. The minor home improvement contractor cannot perform structural work to any existing structures or appurtenances, including load bearing masonry or concrete work (with the exception of on-grade flat work) and load bearing carpentry work (with the exception of patio or porch covers). All electrical, plumbing, air conditioning, heating, boiler and roofing work is required to be performed by an appropriately licensed contractor.

            Established in 1980, statute allows for an exemption from ROC licensure, known as the handyman exemption. Currently, the handyman exemption excludes from licensure any materialman, manufacturer or retailer that is performing certain construction related jobs where a local building permit is not required and where the item or items being installed and the installation or attachment of these items does not exceed $750.  This amount includes the labor, materials and all other items necessary for the job.

            There is no anticipated fiscal impact to the state General Fund associated with this measure.

Provisions

1. Increases, from $750 to $1,000, the threshold amount for the handyman exemption from ROC licensure.

2. Excludes the value of an electrical fixture or appliance from the threshold amount that meets all of the following requirements:

a) is designed by the manufacturer.

b) remains unaltered, unchanged or unmodified by any person.

c) can be plugged into a common two or three pronged household electrical outlet.

d) cannot be attached to the frame or foundation of any residential structure by nail, screw, or other fastening device.

3. Makes technical and conforming changes.

4. Becomes effective on the general effective date.

Amendments Adopted by Committee

· Specifies the types of fixtures and appliances that are excluded from the threshold amount.

House Action Senate Action

COM               2/22/06    DPA/SE      4-3-0-2                        CED                3/22/06     DPA     6-0-2-0

3^rd Read           3/9/06                          35-22-3-0

Prepared by Senate Research

March 30, 2006

BP/LH/ac