HB 2496 Arizona House · 57th Legislature - Second Regular Session

revitalization districts; construction contracts

HB 2496 amends Arizona law to require revitalization districts to include specific payment protections in all construction contracts. It mandates that contractors and subcontractors can temporarily halt work or terminate contracts if payments are delayed, with required notice periods (7 days for contractors, 3 days for subcontractors). The bill prevents contractors from being deemed in breach for stopping work due to non-payment and requires payment of reasonable costs for project restarts. This directly affects revitalization districts, contractors, and subcontractors working on infrastructure projects within these districts. The changes ensure timely payment while reducing financial risk for workers and suppliers.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Governor

Introduced Jan 22, 2026 Last action Mar 4, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version (02/25/2026) · 6 edits · Feb 25, 2026

MODERATE

The bill was reformatted and its scope was expanded to include protections for subcontractors. Previously, the law only allowed general contractors to stop work if the district didn't pay them. Now, the law also allows subcontractors to stop work if the district fails to pay the general contractor, or if the district approves payments but the general contractor refuses to pay the subcontractor. The notice period for stopping work was also standardized to seven calendar days for most situations.

Scope change

The bill's scope was expanded from only protecting general contractors to also protecting subcontractors from non-payment by both the district and the general contractor.

REQUIREMENT

Added new provisions allowing subcontractors to suspend or terminate contracts if the district fails to pay the general contractor or if the district approves work but the general contractor does not pay the subcontractor.

Standardized the notice period for suspending or terminating work to at least seven calendar days, whereas the previous text only specified seven days for general contractors.

Added a provision stating that construction contracts cannot extend the time period available for a contractor or subcontractor to suspend or terminate work due to non-payment.

ENFORCEMENT

Added a specific clause ensuring that a contractor or subcontractor is not considered in breach of contract for legally suspending or terminating work due to non-payment.

Added a requirement for construction contracts to include provisions for awarding reasonable attorney fees and costs to the successful party in disputes over these payment rights.

TECHNICAL

The bill text was reformatted from a line-by-line legislative draft to a clean, continuous statutory format suitable for the final code.

Floor votes · House Feb 25, 2026

How they voted

44–9

Passed · 7 other

Total votes 60

Feb 25, 2026

D Democratic27

13 Yea 9 Nay 5

48% Yea

R Republican33

31 Yea 2

93% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 25, 2026

Lower · Passed

PASSED

lower

Feb 23, 2026

Lower · Passed

lower

Feb 10, 2026

Lower · Passed

lower

1 primary · 0 co-sponsors