House of Representatives

HB 2498

unlicensed contractors; bidding

Sponsors: Representatives Cooley: Blendu, Chase, Giffords, et al

DPA	Committee on Retirement and Government Operations
DPA	Caucus and COW
X	Third Read
	As Passed the House

HB 2498 prohibits an unlicensed person from obtaining a construction contractor’s license for one year, if the person bids on a contract worth more than $200,000.

Current Status

HB 2498 was amended in the Retirement and Government Operations Committee (RGO) to increase the exemption from the contractor’s license requirements from $750 to $1,000 for the material man, manufacturer, retailer or handy man who installs finished products, materials, merchandise or articles of merchandise. The RGO amendment passed in the Committee of the Whole and was amended further to specify that a license must be in the same scope as the job, a contractor must have all of the licenses required for all aspects of the job, the $200,000 limit is in aggregate and the Arizona Department of Transportation (ADOT) is exempt from the bill’s provisions.

History

According to law, construction contractors bidding on contracts worth more than $750 are required to hold an Arizona contracting license in order to conduct business in this state. Ignoring this law results in a class 1 misdemeanor, which may result in up to six months in jail and a fine up to $2,500. Licenses are issued by the registrar of contractors to qualifying contractors. In order to qualify, a contractor must submit an application and fee payment. This licensing process generally takes a maximum of 30 days. Licenses ensure contractors understand state law in regards to construction.

Provisions

· Stipulates an unlicensed person, who bids on a contract worth more than an aggregate of $200,000, will not be issued a contractor’s license for one year.

· Specifies that the license must be in the same scope as the job.

§ Mandates that, in the incident that a job has more than one scope, the contractor must possess all licenses required for all aspects of the job and, if the contractor does not have one or more of those licenses, this bill applies.

§ Increases the exemption from the contractor’s license requirements from $750 to $1000 for the material man, manufacturer, retailer or handy man who installs finished products, materials, merchandise or articles of merchandise.

§ Exempts ADOT from the provisions of this act.

Amendments

HB 2498 was amended in the Retirement and Government Operations Committee as follows:

§ Increases the exemption from the contractor’s license requirements from $750 to $1000 for the material man, manufacturer, retailer or handy man who installs finished products, materials, merchandise or articles of merchandise.

HB 2498 was amended in the Committee of the Whole as follows:

§ Specifies that a license must be in the same scope as the job.

§ Mandates that, in the incident that a job has more than one scope, the contractor must possess all licenses required for all aspects of the job and, if the contractor does not have one or more of those licenses, this bill applies.

§ Clarifies that the $200,000 limit is in aggregate.

§ Exempts ADOT from this act.

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§ 45th Legislature

§ Second Regular Session 2 April 6, 2002

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