ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session

---

HB 2727: contractor licensure; handyman exemption.

Sponsor: Representative Diaz, LD 19

Committee on Regulatory Affairs

Overview

Increases the various handyman exemptions and further directs the Registrar of Contractors to increase each exemption annually for inflation beginning January 1, 2024.

History

Current law provides an exemption from licensure (handyman’s exemption) for certain construction-related jobs that are of a casual or minor nature that do not require a building permit, are performed by a materialman, manufacturer or retailer if the dollar amount does not exceed $1,000 for the total cost of the project, including labor, materials and other items.  Statute also requires that a person who is not licensed as a contractor disclose that fact by including not a licensed contractor on any public form of advertisement. 

Laws 2006, Chapter 274 increased the exemption from $750 to $1,000.  Additionally, that law specified parameters for the various exemptions.   

Provisions

1. Increases, from $1,000 to $2,500, the various exemptions regulated within the construction industry by the Registrar as follows:

a) handyman exemption;

b) the exemption for the sale or installation of finished products, materials or merchandise as outlined;

c) the exemption for the person working on one undertaking or project by one or more contracts as outlined;

d) the exemption for work that is only part of a larger operation as outlined. (Sec. 1, 2)

2. Directs the Registrar, beginning January 1, 2024, to annually increase each exemption for inflation based on the statutory GDP Price Deflator.  (Sec. 1, 2)

3. Makes technical and conforming changes.  (Sec. 1, 2)

---------- DOCUMENT FOOTER ---------

                  HB 2727

Initials DC Page 0 Regulatory Affairs

---------- DOCUMENT FOOTER ---------