unlicensed contractors;
bidding
DPA |
Committee on Retirement and Government Operations |
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DPA |
Caucus and COW |
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DPA |
Third Read |
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X |
As Transmitted to the Governor |
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HB 2498 prohibits an unlicensed entity from obtaining a construction contractor’s license for one year, if the entity bids on a contract worth more than $20,000. The bill also requires the registrar of contractors to issue a written warning to unlicensed entities that bid on contracts with an aggregate worth between $750 and $20,000. The bill provides exemptions to this stipulation if the contractor is working under federal regulation or is otherwise not required to hold a license as provided in ARS §32-1121.
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.