Bill > SB1524

This bill increases the maximum recovery amount in Arizona's Residential Contractors' Recovery Fund from $30,000 to $60,000 for individual claims and raises the total liability limit for each residential contractor's license from $200,000 to $400,000. The bill modifies existing law regarding how homeowners can seek compensation for damages caused by residential contractors. Under the updated provisions, claimants can receive funds to complete or repair a residential structure, with specific limitations: the award cannot exceed actual damages, must be based on bids from licensed contractors, and can only cover residential properties. If a contractor takes a deposit but performs no work, the claimant can recover the full deposit amount plus 10% annual interest, up to the new $60,000 limit. The bill maintains existing restrictions, such as prohibiting awards for attorney fees (except in contested court appeals) and preventing claims by a contractor's spouse. Additionally, the legislation automatically suspends a contractor's license if the fund pays out claims, and the contractor must fully repay the amount plus interest before the license can be reactivated. These changes aim to provide greater financial protection for homeowners while maintaining accountability for contractors.

Government Affairs

https://apps.azleg.gov/BillStatus/BillOverview/82961