residential contractor assessments; recovery fund

SB 1087 amends Arizona law to require residential contractors to pay an annual assessment of $370 for initial licenses and $270 for license renewals. These funds are deposited into the residential contractors' recovery fund, which compensates homeowners if contractors fail to complete work or pay debts. The bill includes a mechanism to automatically reduce the assessment by 50% if the recovery fund exceeds $15 million, reverting to full fees once the fund falls below $10 million. The bill was passed by the legislature in April 2025 but was vetoed by the governor.