Bill Text: AZ SB1218 | 2010 | Forty-ninth Legislature 2nd Regular | Introduced
Bill Title: Contractors; surety bonds
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-02-23 - Referred to Senate RULES Committee [SB1218 Detail]
Download: Arizona-2010-SB1218-Introduced.html
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REFERENCE TITLE: contractors; surety bonds |
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State of Arizona Senate Forty-ninth Legislature Second Regular Session 2010
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SB 1218 |
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Introduced by Senator Leff
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AN ACT
amending title 32, chapter 10, article 3, Arizona Revised Statutes, by adding section 32‑1157.01; relating to contractors.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 32, chapter 10, article 3, Arizona Revised Statutes, is amended by adding section 32-1157.01, to read:
32-1157.01. Surety bonding; stays of revocation and suspension; in lieu of residential contractor recovery fund payments
A. Notwithstanding section 32‑1154, if the registrar suspends or revokes a licensee's license, the licensee may either before or within thirty‑five days after the commencement of the suspension or revocation, deliver to the registrar a surety bond in the form described in subsection B of this section and a power of attorney disclosing the authority of the person executing the power of attorney on behalf of the surety. Notwithstanding title 12, chapter 7, article 6, On the delivery of the bond, any appeal pursuant to section 32‑1157 shall be de novo before the superior court and the suspension or revocation shall be stayed by the registrar until the final decision, order, judgment or decree is rendered pursuant to section 12‑911 or 12‑913, as applicable.
B. A surety bond to stay the registrar's suspension or revocation of a license and to cause the appeal to be de novo before the superior court shall be executed by the licensee and a surety company that holds a certificate of authority to transact surety business in this state that is issued by the director of the department of insurance pursuant to title 20, chapter 2, article 1. The surety bond shall be for the protection of the registrar and the complainant. The surety bond shall be security and in lieu of any monies that would otherwise be awarded by the registrar to the complainant from the residential contractors' recovery fund pursuant to section 32‑1132. Notwithstanding any other law, the surety bond shall not be executed by individual sureties even if the requirements of section 7‑101 are met. The surety bond shall be in an amount of thirty thousand dollars and shall include the caption of the applicable complaint and citation that is under appeal.
C. The surety bond shall be discharged and the principal and sureties shall be released within forty‑five days after any of the following:
1. The failure of the licensee to timely commence an appeal pursuant to section 32‑1157.
2. The dismissal of the applicable complaint and citation by the complainant or registrar.
3. The entry of final decision in the appeal without the suspension or revocation of the license.
4. The successful completion, within sixty days after any final decision, order, judgment or decree pursuant to section 12‑911 or 12‑913, as applicable, in favor of the registrar, by the licensee of all requirements of the decision, order, judgment or decree to rectify any material loss or injury or failure to perform work in a professional and workmanlike manner or in accordance with any applicable building codes and professional industry standards.
5. Except as otherwise provided in this paragraph, the registrar does not award the complainant monies pursuant to section 32‑1132 that are equal to or greater than the full amount of the surety bond within two years after the final decision, order, judgment or decree is rendered pursuant to section 12‑911 or 12‑913, as applicable, in favor of the registrar. If an award against the surety bond is entered pursuant to subsection D of this section in an amount less than the entire amount of the surety bond, the residual amount of the surety bond that is not awarded shall be discharged and the principal and sureties shall be released within forty‑five days.
D. In an appeal pursuant to section 32‑1157, any award in favor of the complainant from the residential contractors' recovery fund pursuant to section 32‑1132 within two years after the date that a final decision, order judgment or decree is rendered pursuant to section 12‑911 or 12‑913, as applicable, shall be against the principal and the principal's sureties and not against the residential contractors' recovery fund for the amount awarded pursuant to section 32‑1132 if all of the following apply:
1. A surety bond has been filed and served pursuant to this section.
2. The final decision, order, judgment or decree is in favor of the registrar.
3. The licensee does not meet all of the requirements under subsection C, paragraph 4 of this section within sixty days after the date of the final decision, order judgment or decree.
