Assigned to COM FOR COMMITTEE

ARIZONA STATE SENATE

Phoenix, Arizona

FACT SHEET FOR H.B. 2502

technical registrants; pay when paid

Purpose

Requires professions or occupations regulated by the Arizona Board of Technical Registration (Board) to pay collaborating professionals within seven days of receiving payment from the client.

Background

The purpose of the Board is to protect the public safety and welfare by regulating assayers, architects, engineers, geologists, land surveyors and landscape architects (registrants). Registrants often work with collaborating professionals in order to complete various projects.

Current statute allows the Board to take disciplinary action if registrants do not pay collaborating professionals when they receive payment from the client. However, current law does not specify a time frame in which the payment must be made (ARS 32-128). According to the Board, there has been a problem with collaborating professionals not receiving payment from the registrant in a timely manner. According to the Board, there were 12 complaints made with respect to this issue last year. H.B. 2502 requires registrants to pay collaborating registered professionals within seven calendar days after the registrant receives payment from the client, unless specified otherwise contractually between the parties involved.

There is no anticipated fiscal impact to the state general fund associated with this measure.

Provisions

1. Requires a registrant to pay a registered collaborating professional within seven calendar days after the registrant receives payment from the client, unless specified otherwise contractually between the prime professional and the collaborating registered professional.

2. Blends a dual enactment and makes technical changes.

3. Provides for a general effective date.

House Action

CED 2/05/01 DPA 9-0-0-1-0

3^rd Read 2/12/01 57-0-3-0

Prepared by Senate Staff

March 26, 2001