Arizona Revised Statutes

Ariz. Rev. Stat. § 32-1139 (2026)

Liability of fund for each residential contractor's license; suspension of license; repayment

✓ current as of May 2026

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A. The liability of the fund shall not exceed two hundred thousand dollars for any one residential contractor's license. If claims against the fund on behalf of any one residential contractor's license exceed two hundred thousand dollars, the claims shall be paid based on a pro rata share of the common liability, and the registrar or a court entering an order for payment after the sum of two hundred thousand dollars has been paid from the fund shall modify the order indicating that no further recovery from the fund shall be allowed.

B. If any amount is paid from the fund in settlement of a claim arising from the act, representation, transaction or conduct of a residential contractor, the license of the contractor shall be automatically suspended by operation of law until the amount paid from the fund is repaid in full, plus interest at the rate of ten per cent a year. Any person who is or was, at the time of the act or omission, named on a license that has been suspended because of a payment from the recovery fund is not eligible to receive a new license or retain another existing license that also shall be suspended by operation of law, nor shall any suspended license be reactivated, until the amount paid from the fund is repaid as provided in this subsection.

C. After receiving an award from the fund pursuant to this article a person is deemed to have assigned to the registrar the person's rights for recovery against the responsible residential contractor licensed pursuant to this chapter to the extent of the person's award from the fund.

Notes of Decisions

Cited in 3 cases, 1991–2014 · leading case: Shelby v. Arizona Registrar of Contractors, 834 P.2d 818 (Ariz. 1992).

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Shelby v. Arizona Registrar of Contractors, 834 P.2d 818 (Ariz. 1992). · cites it 4× “The aggregate award to all plaintiffs is subject to the $75,000 limit under A.R.S. § 32-1139 and may not exceed the total actual damage to the common areas.”

Shelby v. Arizona Registrar of Contractors, 817 P.2d 941 (Ariz. Ct. App. 1991). · cites it 2× “A.R.S. § 32-1139(A). As the registrar notes, the recovery fund statutes do not specifically address an award to a condominium association or individual owners of condominium units.”

Kost v. Aroc (Ariz. Ct. App. 2014). · cites it 3× “¶23 Kost argues the court’s conclusion was error because, under A.R.S. § 32-1139(B), he is “personally liable to repay the recovery fund or his other [contracting] license will be suspended.”

— Ariz. Rev. Stat. § 32-1139(A) — 2 cases

Shelby v. Arizona Registrar of Contractors, 834 P.2d 818 (Ariz. 1992). “The aggregate award to all plaintiffs is subject to the $75,000 limit under A.R.S. § 32-1139 and may not exceed the total actual damage to the common areas.”

Shelby v. Arizona Registrar of Contractors, 817 P.2d 941 (Ariz. Ct. App. 1991). “A.R.S. § 32-1139(A). As the registrar notes, the recovery fund statutes do not specifically address an award to a condominium association or individual owners of condominium units.”

— Ariz. Rev. Stat. § 32-1139(B) — 1 case

Kost v. Aroc (Ariz. Ct. App. 2014). “¶23 Kost argues the court’s conclusion was error because, under A.R.S. § 32-1139(B), he is “personally liable to repay the recovery fund or his other [contracting] license will be suspended.”

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