Senate approves changes to residential contractor fund; lawmaker objects over payout limits

The Arizona Senate passed Senate Bill 10-87 on Feb. 24, 2025, a measure amending contractor-related provisions in Arizona law to address the residential contractor assessment recovery fund. The bill was recommended for passage by the Senate committee on regulatory affairs and government efficiency and advanced through the Committee of the Whole with a due-pass recommendation.

Senator Sean Bullock's committee reported the bill "do pass," and Senator Hoffman moved the Committee of the Whole to report the bill do pass. On third reading, the measure was opened for floor voting and passed with a final recorded tally of 16 ayes and 14 nays.

Senator Dunn explained his no vote on the floor, saying the recovery fund "has not been able to pay out to those people that are under the contracts that have been, not done about the 50%" and expressed a wish that "the limits should be raised." He called for further work on the payout limit in the House while voting no in the Senate.

The Senate instructed the secretary to record the action and transmit the bill to the House.

Why this matters: the recovery fund provides a statutory mechanism for homeowners to seek payment when contractors fail to complete work; floor commentary emphasized a concern that current payout parameters limit the fund's usefulness.

Procedural notes: the committee reported the bill favorably, the Committee of the Whole rose to report a due-pass recommendation, and the bill passed on the floor with a 16-14 vote. The measure now moves to the House.