registrar of contractors; recovery fund

SB 1565 establishes a residential contractors' recovery fund in Arizona, administered by the state registrar, to compensate individuals and entities damaged by licensed residential contractors who violated state licensing rules. The fund covers eligible claimants including homeowners who occupy their primary residence, certain trusts or LLCs where members live there, planned communities for common-area damage, and tenants who contracted directly with the contractor. Compensation is limited to actual repair costs or refunded deposits (up to $40,000 per claim), excluding commercial properties, attorney fees, and amounts recovered elsewhere. To qualify, the contractor must have been properly licensed at the time of contract signing, payment, or work commencement.