 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
registrar of contractors; administrative recovery
Purpose
Increases the number of days for which a contractor's failure to respond in writing after service from the Registrar of Contractors (ROC) is deemed a waiver of the right to contest the payment amount of an administrative recovery from the Residential Contractors' Recovery Fund (Fund).
Background
A contractor's license may be issued only by act of the ROC. The responsibilities of the ROC include: 1) classifying and qualifying applicants for a license; 2) if necessary, changing the license classification of a license in the case of a title reclassification; 3) conducting investigations that ROC deems necessary; and 4) establishing written examinations to protect the health and safety of the public (A.R.S. § 32-1122).
The Fund is administered by the ROC and is financed by contractor paid assessments collected at the time licenses are issued or renewed. The Fund is administered for the benefit of claimants that are damaged by the act, representation, transaction or conduct of a licensed residential contractor that is in violation of rules adopted by the ROC. If a contractor license is revoked or suspended because of an order to remedy a violation, the ROC may order payment from the Fund. The maximum individual award from the Fund is $30,000. The ROC must serve the contractor with a notice specifying the amount claimed or to be awarded. A contractor who contests the payment must request a hearing within 10 days of service. The contractor's failure to respond within 10 days of service may be deemed a waiver by the contractor of the right to contest the amount claimed or to be awarded (A.R.S. §§ 32-1132, 32-1132.01 and 32-1133.01).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Extends, from 10 days to 20 days, the time for which a contractor's failure to respond in writing after service from the ROC is deemed a waiver of the right to contest the payment amount of an administrative recovery from the Fund.
2. Becomes effective on the general effective date.
House Action
COM 2/16/26 DP 10-1-0-0
3rd Read 3/3/26 56-0-3-0-1
Prepared by Senate Research
March 9, 2026
JT/HD/ci