Read the full stored bill text
HB2339 - 572R - I Ver
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 contractor to comply with any
safety or labor laws or codes of the federal government, this state or
political subdivisions of this state.
12. Failure in any material respect to comply with
this chapter
OR TITLE 44, CHAPTER 11, ARTICLE 11
.
13. Knowingly entering into a contract with a
contractor for work to be performed for which a license is required with a
person that is not duly licensed in the required classification.
14. Acting in the capacity of a contractor under any
license issued under this chapter in a name other than as set forth on the
license.
15.
providing
false,
misleading or deceptive advertising whereby any member of the public was misled
and injured.
16. Knowingly contracting beyond the scope of the
license or licenses of the licensee.
17. Contracting or offering to contract or
submitting a bid while the license is under suspension or while the license is
on inactive status.
18. Failure to notify the registrar in writing
within a period of fifteen days of any disassociation of the person who
qualified for the license. The licensee must qualify through another
person within sixty days after the date of disassociation.
19.
Subsequent discovery of facts
an act or omission that is subsequently discovered
that if
known at the time of issuance of a license or the renewal of a license would
have been grounds to deny the issuance or renewal of the license.
20. Having a person named on the license who is or
was named on any other license in this state or in another state that is under
suspension or revocation for any act or omission that occurs while the person
is or was named on the license unless the prior revocation was based solely on
a violation of this paragraph.
21. Continuing a new single-family residential
construction project with actual knowledge that a pretreatment wood-destroying
pests or organisms application was either:
(a) Not performed at the required location.
(b) Performed in a manner inconsistent with label
requirements, state law or rules.
22. Failure to take appropriate corrective action to
comply with this chapter or with rules adopted pursuant to this chapter without
valid justification within a reasonable period of time after receiving a
written directive from the registrar. The written directive must set
forth the time within which the contractor is to complete the remedial action.�
The time permitted for compliance may not be less than fifteen days from the
date of issuance of the directive. A license may not be revoked or
suspended nor may any other penalty be imposed for a violation of this
paragraph until after a hearing has been held.
23. Prohibit, threaten to prohibit, retaliate
against, threaten to retaliate against or otherwise intimidate any contractor
or materialman from serving a preliminary notice pursuant to section 33-992.01.
24. For contractors
AND SELLERS OR
MARKETERS as defined in section 44-1761 OF SOLAR ENERGY DEVICES AS
DEFINED in SECTION 44-1761
, failure to comply with title 44,
chapter 11, article 11.
B. The registrar:
1. May investigate
the acts of a contractor
,
OR of a SELLER
OR MARKETER as defined in section 44-1761 OF SOLAR ENERGY DEVICES as
defined in section 44-1761,
in this state on the registrar's own
motion.
2. Shall investigate the acts of a contractor in
this state on the written complaint of any owner or contractor that is a party
to a construction contract or a person who suffers a material loss or injury as
a result of a contractor's failure to perform work in a professional and
workmanlike manner or in accordance with any applicable building codes and
professional industry standards. For the purposes of this paragraph:
(a) "Construction contract" means a
written or oral agreement relating to the construction, alteration, repair,
maintenance, moving or demolition of any building, structure or improvement or
relating to the contractor's excavation of or other development or improvement
to land if the registrar investigates the contractor's actions under this
subsection.
(b) "Owner" means any person, firm,
partnership, corporation, association or other organization, or a combination
of any of them, that causes a building, structure or improvement to be
constructed, altered, repaired, maintained, moved or demolished or that causes
land to be excavated or otherwise developed or improved, whether the interest
or estate of the person is in fee, as vendee under a contract to purchase, as
lessee or another interest or estate less than fee, pursuant to a construction
contract.
3. May temporarily suspend, with or without
imposition of specific conditions in addition to increased surety bond or cash
deposit requirements, or permanently revoke any or all licenses issued under
this chapter
or title 44, chapter 11, article 11
if the
holder of the license issued pursuant to this chapter
or title
44, chapter 11, article 11
is guilty of or commits any of the acts or
omissions set forth in subsection A of this section.
4. ON THE WRITTEN COMPLAINT OF A
MEMBER OF THE PUBLIC, sHALL INVESTIGATE THE ACTS OF A SELLER OR MARKETER as
defined in section 44-1761 OF SOLAR ENERGY DEVICES AS DEFINED in SECTION
44-1761.
C. Pursuant to this chapter, the registrar shall
suspend by operation of law a license issued to a person under this chapter on
notice from the department of revenue that a tax debt related to income taxes,
withholding taxes or any tax imposed or administered by title 42, chapter 5
that was incurred in the operation of the licensed business has become final
and the person neglects to pay or refuses to pay the tax debt.
D. The expiration, cancellation, suspension or
revocation of a license by operation of law or by decision and order of the
registrar or a court of law or the voluntary surrender of a license by a
licensee does not deprive the registrar of jurisdiction to proceed with any
investigation of or action or disciplinary proceeding against such a licensee,
or to render a decision suspending or revoking such a license, or denying the
renewal or right of renewal of such a license.
E. The registrar may impose a civil penalty of not
to exceed
more than
$500 on a contractor
for each violation of subsection A, paragraph 22 of this section.� Civil
penalties collected pursuant to this subsection shall be deposited in the
residential contractors' recovery fund. The failure by the licensee
to pay any civil penalty imposed under this subsection results in the automatic
revocation of the license thirty days after the effective date of the order
providing for the civil penalty. A person who is or was named on a
license of a contractor when an act or omission occurs that results in a civil
penalty may not receive a new license under this chapter until the entire civil
penalty is paid.
F. The registrar may impose a civil penalty of not
to exceed
more than
$1,000 on a contractor
for each violation of subsection A, paragraph 17 of this
section. Civil penalties collected pursuant to this subsection shall
be deposited in the residential contractors' recovery fund. The
failure by the licensee to pay any civil penalty imposed under this subsection
results in the automatic permanent revocation of the license thirty days after
the effective date of the order providing for the civil penalty.� A person who
is or was named on a license of a contractor when an act or omission occurs
that results in a civil penalty may not receive a new license under this
chapter until the entire civil penalty is paid.
END_STATUTE
Sec. 7. Section 32-1162, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-1162.
Statute of limitations; remedy violations
A. A person may file a written complaint pursuant to
section 32-1155 with the registrar alleging a licensee has committed a
violation of this chapter
OR TITLE 44, CHAPTER 11, ARTICLE 11
.�
The complaint must be filed:
1. For new home builds or other new building
construction, within two years after the earlier of the close of escrow or
actual occupancy.
2. For all other projects, within two years after
the completion of the specific project.
B. For licensure regulatory purposes under this
chapter, a licensee's qualifying party is responsible for any violation of this
chapter committed by the licensee during the period of time that the qualifying
party is named on the license.� This subsection does not impose personal
liability on the qualifying party for a licensee's violation of this chapter.
C. For licensure regulatory purposes under this
chapter, a person named on a license is responsible for any violation of this
chapter committed by the licensee during the period of time that person was
named on the license.� This subsection does not impose personal liability on a
person named on a license for a licensee's violation of this chapter.
D. A licensee doing business as a sole proprietor
may be personally liable to the registrar for the purposes of enforcing this
chapter, including subrogation proceedings brought by this state pursuant to
section 32-1138
, AND ENFORCING TITLE 44, CHAPTER 11,
ARTICLE 11
.
END_STATUTE
Sec. 8. Section 32-1166, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-1166.
Cease and desist orders
A. The registrar may
issue a cease and desist order to any person who is required to be licensed by
this chapter
OR TITLE 44, CHAPTER 11, ARTICLE 11
but who
is not licensed and who engaged in an act of contracting, a practice or a
transaction that violates this chapter
OR TITLE 44, CHAPTER 11,
ARTICLE 11
, a rule adopted by the registrar or an order issued by the
registrar.
B. The cease and desist order may require the person
to immediately cease and desist from engaging in an act, practice or
transaction on receipt of the order.
C. Service of the cease and desist order is fully
effected by personal service or by mailing a true copy of the cease and desist
order by certified mail in a sealed envelope, with postage prepaid, addressed
to either:
1. The person's last known business address.
2. The person's residential address.
END_STATUTE
Sec. 9. Section 32-1166.01, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-1166.01.
Citation; civil penalties
A. In conjunction with the registrar's authority to
issue a cease and desist order under section 32-1166, subsection A, the
registrar may issue a citation for contracting
,
practicing or transacting
,
OR for SELLING
OR MARKETING a solar energy device as defined in section 44-1761,
that
constitutes a violation of any of the following:
1. This chapter.
2. A rule adopted by the registrar.
3. An order issued by the registrar.
4. tITLE 44, CHapter 11, article 11.
B. A citation issued pursuant to this section shall:
1. Be in writing.
2. Clearly describe the violation for which the
citation was issued.
3. Contain an order to cease and desist.
4. Contain a civil penalty of at least $200 for each
violation but not more than $2,500 for multiple violations committed on the
same day.
C. Each violation of this chapter
or
title 44, chapter 11, article 11
or a rule or order of the registrar by
a person who is required to be licensed by this chapter
or title
44, chapter 11, article 11
and who does not possess the required license
constitutes a separate offense
,
and the registrar may
impose a civil penalty
of
not
to exceed
more than
$2,500 for each violation except that the civil
penalty may not exceed $2,500 for all violations committed on the same day.
D. The registrar shall issue a citation under this
section within one hundred and eighty days after actual discovery of the
offense by this state or the political subdivision having jurisdiction.�
Service of the citation is fully effected by personal service or by mailing a
true copy of the citation by certified mail in a sealed envelope with postage
prepaid and addressed to either:
1. The person's last known business address.
2. The person's residential address.
E. The registrar may issue citations containing
orders to cease and desist and civil penalties against persons who have never
been licensed under
:
1.
This chapter
AND
who are acting in the capacity of or engaging in the
business of a contractor in this state
.
2. title 44, chapter 11, article 11
and who are acting in the capacity of or engaging in the business of a seller
or marketer as defined in section 44-1761 of a solar energy device as
defined in section 44-1761 for placement on the roof of a residential
property
.
F. If the registrar issues a citation against a
person and the person fails to comply with the cease and desist order and
citation, the registrar may assess an additional civil penalty of up to $2,500
for each day the violation continues.
G. The registrar may adopt rules relating to the
civil penalty that give due consideration to the gravity of the violation and
any history of previous violations.
H. The penalties authorized under this section are
separate from, and in addition to, all other remedies provided by law, either
civil or criminal.
I. The registrar shall deposit, pursuant to sections
35-146 and 35-147, all monies collected from civil penalties under
this section in the state general fund.
END_STATUTE
Sec. 10. Title 44, chapter 11, article 11,
Arizona Revised Statutes, is amended by adding section 44-1762.01, to read:
START_STATUTE
44-1762.01.
Sellers; marketers; licensure; registrar of contractors; fiduciary
duty; rules
A. A seller or marketer must be
licensed by the registrar of contractors to sell or solicit the sale, financing
or lease of a solar energy device if the solar energy device is designed to be
installed on the roof of a residential property.
B. A person is entitled to receive a
solar energy device salesperson license if the person submits to the registrar
of contractors an application on forms prescribed by the registrar of
contractors and pays the fees prescribed by section 32-1126 for a solar
energy device salesperson license.� Licenses issued under this section are
valid for a period of two years and may be renewed on application as prescribed
by the registrar of contractors and payment of renewal fees as prescribed by
section 32-1126.
C. A seller or marketer owes a
fiduciary duty to the buyer or lessee of a distributed energy generation system
to act according to the buyer's or lessee's instructions and in the buyer's or
lessee's best interests notwithstanding the manner in which the seller or
marketer is compensated.
D. The registrar of contractors may
adopt rules to enforce this section.
END_STATUTE
Sec. 11.
Effective date
Section 32-1107, Arizona Revised
Statutes, as amended by Laws 2024, chapter 222, section 12, is effective from
and after June 30, 2028.