SB 1218 Summary

• Allows licensees facing suspension or revocation to file a $30,000 surety bond with the registrar within 35 days to stay the action and obtain a de novo appeal in superior court instead of before the registrar.

• The surety bond must be executed by a surety company holding a certificate of authority from the Arizona Department of Insurance and serves as security in lieu of payments from the residential contractors' recovery fund.

• The surety bond is discharged and principal/sureties released within 45 days if the licensee fails to appeal, the complaint is dismissed, the license is not suspended or revoked on appeal, or the licensee completes all corrective requirements within 60 days.

• If a final decision favors the registrar and the licensee fails to complete corrective requirements within 60 days, any recovery fund award to the complainant within two years shall be against the principal and surety rather than the recovery fund.

• Individual sureties cannot execute the bond, and the bond must include the caption of the applicable complaint and citation under appeal.