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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
REVISED
contractor licensure; handyman exemption
Purpose
Increases, from $1,000 to $2,500, the aggregate contract price, including labor and materials, exempt from licensure as a contractor with the Registrar of Contractors (ROC). Requires the ROC to increase the amount of the exemption each year beginning January 1, 2024, for inflation based on the GDP Price Deflator.
Background
The ROC licenses and regulates residential and commercial contractors.
The powers and duties of the ROC include: 1) maintaining a complete indexed
record of all applications and licenses issued, renewed, terminated, cancelled,
revoked or suspended, including timely notation of any judicial disposition on
appeal, for a period of not less than seven years; 2) adopting rules necessary
to classify contractors in a manner consistent with established usage and
procedure in the construction business; 3) developing and instituting programs
to educate the public and contractors regarding statues, rules, policies and
operations of the agency; and 4) administering the Residential Contractors'
Recovery Fund for the benefit of a claimant damaged by an act, representation,
transaction or conduct of a licensed residential contractor (A.R.S. Title 32,
Chapter 10). Statute generally exempts, from contractor licensure
requirements, persons whose aggregate contract price, including labor and
materials, does not exceed $1,000, commonly known as the handyman exemption (A.R.S.
§ 32-1121).
If increasing the aggregate contract price that is exempt from contractor licensure changes the ROC's revenues, there may be a fiscal impact to the state General Fund.
1. Increases, from $1,000 to $2,500, the aggregate contract price, including labor and materials, for exclusion from licensure as a contractor with the ROC.
2. Requires the ROC, for each year beginning January 1, 2024, to increase the dollar amount of the exemption for inflation based on the GDP Price Deflator.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Revision
· Corrects the short title.
Prepared by Senate Research
February 14, 2023
JT/PM/sr