HB2339 - Solar devices; sellers; marketers; licensure

REFERENCE TITLE: solar devices; sellers; marketers; licensure State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026 HB 2339 Introduced by Representatives Heap: Marshall AN ACT amending sections 32-1103 and 32-1104, Arizona Revised Statutes; amending section 32-1107, Arizona Revised Statutes, as amended by laws 2024, chapter 222, section 11; amending section 32-1107, Arizona Revised Statutes, as amended by laws 2024, chapter 222, section 12; amending sections 32-1126, 32-1154, 32-1162, 32-1166 and 32-1166.01, Arizona Revised Statutes; amending title 44, chapter 11, article 11, Arizona Revised Statutes, by adding section 44-1762.01; relating to solar energy devices. (TEXT OF BILL BEGINS ON NEXT PAGE) Be it enacted by the Legislature of the State of Arizona: Section 1. Section 32-1103, Arizona Revised Statutes, is amended to read: START_STATUTE 32-1103. Registrar of contractors; salary The governor shall appoint a registrar of contractors pursuant to section 38-211. The registrar shall serve at the pleasure of the governor. The registrar is vested with all functions and duties relating to administration of this chapter and TITLE 44, chapter 11, article 11 . The registrar shall receive compensation as determined pursuant to section 38-611. END_STATUTE Sec. 2. Section 32-1104, Arizona Revised Statutes, is amended to read: START_STATUTE 32-1104. Powers and duties A. The registrar, in addition to other duties and rights provided for in this chapter and title 44, chapter 11, article 11 , shall: 1. Maintain an office in Phoenix and in such other cities and towns in the this state as the registrar deems advisable and necessary. 2. Maintain a complete indexed record of all applications and licenses that are issued, renewed, terminated, cancelled canceled , revoked or suspended under this chapter, including timely notation of any judicial disposition on appeal, for a period of not less than at least seven years. 3. Furnish a certified copy of any license issued or an affidavit that no license exists or that a license has been cancelled canceled or suspended, including information as to the status on appeal of such a cancellation or suspension, on receipt of the prescribed fee . , and That certified copy or affidavit shall be received in all courts and elsewhere as prima facie evidence of the facts stated therein in the certified copy or affidavit . The registrar shall also furnish certified copies of license bonds or cash deposit certificates on receipt of the prescribed fee. Fees charged pursuant to this paragraph are $10 per hour, except that the minimum fee charged pursuant to this paragraph is $10. 4. Employ such deputies, investigators and assistants who are subject to title 41, chapter 4, article 4, and procure such equipment and records, as are necessary to enforce this chapter. With respect to the enforcement of section 32-1164, the registrar or the registrar's investigators are vested with the authority to issue a citation to any violators of this chapter in accordance with section 13-3903. When the registrar or the registrar's investigators conduct investigations they are authorized to receive criminal history record information from the department of public safety and other law enforcement agencies. 5. Make rules the registrar deems necessary to effectually carry out the provisions and intent of this chapter. Such rules shall include the adoption of minimum standards for good and workmanlike construction. In adopting such rules of minimum standards, the registrar shall be guided by established usage and procedure as found in the construction business in this state. If the rules of minimum standards adopted by the registrar are in any manner inconsistent with a building or other code of this state , or a county, city or other political subdivision or local authority of this state, compliance with such code shall constitute good and workmanlike construction for the purposes of this chapter. 6. Apply the following to proposed rule changes: (a) The registrar of contractors, at the time the registrar files notice of proposed rule change with the secretary of state in compliance with title 41, chapter 6, shall mail to each trade association that qualifies in accordance with subdivision (b) of this paragraph, and any other individual holding a bona fide contractor's license who qualifies in accordance with subdivision (b) of this paragraph, a copy of the notice of proposed rule change. (b) Every trade association in this state allied with the contracting business that files a written request that a notice be mailed to it and shows that the association has an interest in the rules of the registrar of contractors shall receive a copy thereof of the notice of proposed rule change , as set forth in subdivision (a) of this paragraph. Such filing of a request may be made every two years , and it shall contain information as to the nature of the association and its mailing address. Any duly licensed contractor who files a written request shall receive a copy of the proposed rule changes in accordance with this paragraph. Each such request may be made every two years. 7. Prepare and furnish decals and business management books when deemed advisable by the registrar. A reasonable fee may be charged for such decals and business management books. 8. Refer criminal violations of this chapter to the appropriate law enforcement agency or prosecuting authority. B. The registrar may develop and institute programs to do any of the following: 1. Educate the public and contractors licensed pursuant to this chapter regarding statutes, rules, policies and operations of the agency. 2. Assist in resolving disputes in an informal process before a reportable written complaint is filed. The registrar must notify the licensed contractor in an alleged dispute before a written complaint is filed and allow the contractor the opportunity to be present at any inspection regarding the alleged dispute. The registrar must give the contractor at least five days' notice before the inspection. Issues in the alleged dispute under this section shall not be limited in number and shall not be considered formal written complaints. The homeowner reserves the right to deny access to the contractor under this informal complaint process. The registrar must notify the contractor and the homeowner in writing of the registrar's findings within five days after the date of the inspection. The registrar may not post any information regarding the informal complaint process as part of a licensee's record on the registrar's website. 3. Develop, manage, operate and sponsor construction related construction-related programs that are designed to benefit the public in conjunction with other private and public entities. C. The registrar shall publicly post a list of applicants for a contractor license on its website for at least twenty days, commencing on the day designated by the registrar. The registrar shall issue a license if the applicant meets all requirements regardless of the twenty-day posting period. The registrar shall furnish copies of the posting list on written request. A reasonable charge, not to exceed $2 per month, may be made for compilation, printing and postage for the posting list. The list shall contain the following information: 1. The name and address of the applicant. 2. The names, addresses and official capacity of all persons required to sign the application under section 32-1122. D. The registrar may accept voluntary gifts, grants or matching monies from public agencies or enterprises for the conduct of programs that are authorized by this section or that are consistent with the purpose of this chapter. END_STATUTE Sec. 3. Section 32-1107, Arizona Revised Statutes, as amended by Laws 2024, chapter 222, section 11, is amended to read: START_STATUTE 32-1107. Registrar of contractors fund A. The registrar of contractors fund is established. The registrar of contractors shall administer the fund. The registrar shall deposit, pursuant to sections 35-146 and 35-147, eighty-five percent of all monies collected under this chapter and title 44, chapter 11, article 11 in the registrar of contractors fund and fifteen percent of all monies collected under this chapter in the state general fund, except monies collected for the residential contractors' recovery fund and the contractors' cash bond fund and monies received from civil penalties. B. The registrar shall use monies in the registrar of contractors fund for carrying out the powers and duties of the registrar and for the purposes of this chapter. Monies deposited in the registrar of contractors fund are subject to section 35-143.01. END_STATUTE Sec. 4. Section 32-1107, Arizona Revised Statutes, as amended by Laws 2024, chapter 222, section 12, is amended to read: START_STATUTE 32-1107. Registrar of contractors fund A. The registrar of contractors fund is established. The registrar of contractors shall administer the fund. The registrar shall deposit, pursuant to sections 35-146 and 35-147, ninety percent of all monies collected under this chapter and title 44, chapter 11, article 11 in the registrar of contractors fund and ten percent of all monies collected under this chapter in the state general fund, except monies collected for the residential contractors' recovery fund and the contractors' cash bond fund and monies received from civil penalties. B. The registrar shall use monies in the registrar of contractors fund for carrying out the powers and duties of the registrar and for the purposes of this chapter. Monies deposited in the registrar of contractors fund are subject to section 35-143.01. END_STATUTE Sec. 5. Section 32-1126, Arizona Revised Statutes, is amended to read: START_STATUTE 32-1126. Fees A. The license fees prescribed by this chapter and title 44, chapter 11, article 11 are as follows: 1. Application and license fees for an original biennial license: (a) For general residential contracting and subclassifications of general residential contracting, not more than $500. (b) For general commercial contracting and subclassifications of general commercial contracting, not more than $1,500. (c) For general dual licensed contracting, not more than $2,000. (d) For specialty residential contracting, not more than $350. (e) For specialty commercial contracting, not more than $1,000. (f) For specialty dual licensed contracting, not more than $1,350. ( g ) For solar energy device salespersons, an amount to be determined by the registrar. 2. Biennial license renewal fee fees : (a) For general residential contracting and subclassifications of general residential contracting, not more than $320. (b) For general commercial contracting and subclassifications of general commercial contracting, not more than $1,000. (c) For general dual licensed contracting, not more than $1,320. (d) For specialty residential contracting, not more than $270. (e) For specialty commercial contracting, not more than $900. (f) For specialty dual licensed contracting, not more than $1,170. ( g ) For solar energy device salespersons, an amount to be determined by the registrar. B. The fee for an annual license renewal granted pursuant to section 32-1123.01 is one-half of the biennial license renewal fee. C. The registrar may establish reasonable fees for services performed by the registrar relating to reexaminations, processing of applications, changes of qualifying party and approval of name changes on licenses. D. The penalty for failure to apply for renewal of a license within the time prescribed by this chapter is $50. E. The registrar may establish a separate fee for examination. F. The registrar may contract with private testing services to establish and administer such examinations and may authorize the payment of the examination fee to the private testing service. G. Except as provided in section 32-1152, subsection C, a person applying for a contractor license or for renewal of a contractor license to engage in residential contracting shall pay an assessment of not more than $600 during the biennial license period for deposit in the residential contractors' recovery fund established by section 32-1132. If the registrar does not issue the license, the assessment shall be returned to the applicant. END_STATUTE Sec. 6. Section 32-1154, Arizona Revised Statutes, is amended to read: START_STATUTE 32-1154. Grounds for suspension or revocation of license; continuing jurisdiction; civil penalty A. The holder of a license or any person named on a license pursuant to this chapter or title 44, chapter 11, ARTICLE 11 may not commit any of the following acts or omissions: 1. Abandonment of a contract or refusal to perform after submitting a bid on work without a legal excuse for the abandonment or refusal. 2. Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code. (b) A building code of this state or any political subdivision of this state in any material respect that is prejudicial to another. 3. Violation of any rule adopted by the registrar. 4. Failure to comply with the statutes or rules governing social security, workers' compensation or unemployment insurance. 5. Misrepresentation of a material fact by the applicant in obtaining a license. 6. The doing of a fraudulent act by the licensee as a contractor resulting in another person being substantially injured. For the purposes of this paragraph, "fraudulent act" means a material misrepresentation that a licensee makes, that is relied on by another person and that results in damage to that person or that person's property. 7. Conviction of a felony. 8. Failure in a material respect by the licensee to complete a construction project or operation for the price stated in the contract, or in any modification of the contract. 9. Attempting to evade this chapter OR TITLE 44, CHAPTER 11, ARTICLE 11 by: (a) Aiding or abetting a licensed or unlicensed person. (b) Acting or conspiring with a licensed or unlicensed person. (c) Allowing one's license to be used by a licensed or unlicensed person. (d) Acting as an agent, partner, associate or otherwise of a licensed or unlicensed person. 10. Failure by a licensee or agent or official of a licensee to pay monies in excess of $750 when due for materials or services rendered in connection with the licensee's operations as a contractor unless the licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased. 11. Failure of a cont [Text truncated for display. Full text available on LegiScan.]