AZ SB1284

Repeals section 32-1134.01 and amends section 32-1139 regarding the residential contractors' recovery fund, clarifying that claims exceeding $200,000 per license are paid on a pro rata basis and establishing that persons receiving fund awards assign their recovery rights to the registrar.

Creates a new arbitration process for complaints filed with the registrar when the cost of repairs is $5,000 or less (mandatory at registrar's discretion) or more than $5,000 (only if all parties agree).

Requires the arbitrator to be a member in good standing of the construction law section of the state bar of Arizona and prohibits the arbitrator from ordering license suspension/revocation, awarding monetary damages, assessing penalties, or awarding legal fees.

Allows licensees to post a bond within 14 days of arbitration notice to prevent license suspension during the process, with the arbitrator issuing a recommended order within 15 days of the hearing that becomes final 30 days after the registrar's order.

Applies the arbitration provisions to all complaints filed with the registrar on or after the effective date of the section.