Legislative Updates: Arizona Registrar of Contractors

By Jessica A. Jackson

Effective October 1, 2009, a number of statutes have been revised that pertain to licensed contractors in Arizona. One major change involves an amendment to A.R.S. § 12-1365 regarding the notice that must appear in contracts for the sale of newly constructed homes. This statute mandates that the sale contract contain a notice to the homebuyer of their right to file a complaint with the Arizona Registrar of Contractors (“ROC”) against a homebuilder. This statute has now been amended to allow for a claim within two years after the close of escrow on the home or actual occupancy of the home, whichever occurs first—instead of two years after the commission of an act that would constitute grounds for suspension or revocation of a license, as the statute previously read. This change now gives homebuyers more time to file complaints with the ROC than before.

Additionally, a number of other amendments are now in place that should be highlighted:

• A.R.S. § 32-1124 was amended to require that the acronym “ROC” followed by the contractor’s license number be placed on all “broadcast, published, Internet or billboard advertising, letterhead and other documents” used by the contractor to correspond with customers or potential customers.
• A.R.S. § 32-1154 now lists as a ground for suspension or revocation of a license the “doing of a fraudulent act” resulting in another person being substantially injured, instead of the doing of a “wrongful or fraudulent act.” The act now must be fraudulent, and no longer includes “wrongful” acts.
• A.R.S. § 32-1158 deals with required elements for contracts over $1,000.00 between a contractor and an owner of property to be improved. It was amended to say that the required notice to the owner regarding their right to file a complaint with the ROC shall be in “at least 10-point font” instead of requiring that it be in exactly 10-point font as the statute used to require.
• A.R.S. § 41-1080 deals with providing proof of citizenship or alien status before obtaining a contractor’s license. It was amended to provide two clarifications concerning when documentation needs to be provided upon renewal or reinstatement of a license:

i) Where an individual has affirmatively established citizenship of the U.S. or a form of non-expiring work authorization issued by the federal government, the person is not required to provide subsequent documentation upon renewal or reinstatement of a license; and

ii) Where a person holds a limited form of work authorization issued by the federal government and it has expired, the person is required to provide documentation of that status.

For a copy of the ROC statute booklet that contains the relevant Arizona Statutes (including the amendments above) click here. Please contact Jessica Jackson at jjackson@holmwright.com or (480) 477-8593 for additional information.