Did Arizona raise the ROC Recovery Fund to $40,000 / $300,000? (SB 1565)

After high-profile contractor collapses, Arizona homeowners often hear that “the Recovery Fund limits just went up.” In 2026 that rumor usually points at SB 1565 — a bill that would raise Recovery Fund caps — or at ROC leadership saying they want higher caps. Wanting a change, and introducing a bill, are not the same as rewriting the statute you can still read on azleg.gov.

What the live statute still says

As of our 2026-08-11 review of azleg.gov:

Cap	Live statute	Amount
Maximum individual award	A.R.S. § 32-1132.01	$30,000
Maximum liability per residential license	A.R.S. § 32-1139	$200,000

ROC’s own Recovery Fund page repeats those same dollar limits. Payment is still not guaranteed, and awards still measure actual repair/completion damages after eligibility and bond/discipline or judgment prerequisites.

What SB 1565 proposed (and did not enact)

SB 1565 (57th Legislature, Second Regular Session 2026), introduced by Sen. Dunn, would have amended Recovery Fund statutes. The introduced text would, among other things:

• Raise the maximum individual award from $30,000 to $40,000
• Raise per-license fund liability from $200,000 to $300,000
• Broaden and clarify eligible claimant categories (including certain LLCs, revocable living trusts, associations, and residential lessees under stated conditions)

Legislative trackers show the bill received Senate first and second reading and committee referral in early February 2026 — then did not advance to chaptered law before the Arizona Legislature adjourned its 2026 session in mid-June. Live azleg.gov pages for A.R.S. §§ 32-1132.01 / 32-1139 still show $30,000 / $200,000. Introduced bill text is not live law.

A prior-session proposal (SB 1524 in 2025) floated even higher draft numbers ($60,000 / $400,000). That did not change today’s live caps either. Treat any social post that flattens “a bill was filed” into “the caps already changed” as a myth until azleg.gov’s statute pages change.

Sources: AZ Mirror — Legislature ends 2026 session; FastDemocracy / PolicyEngage bill trackers for SB 1565.

What FOX 10 reported about ROC wanting higher caps

In August 2026 coverage, FOX 10 quoted Arizona Registrar of Contractors Director Tom Cole saying Recovery Fund awards are capped by statute and that the agency has done stress tests and will again propose legislation to increase those numbers — with lawmakers as the ultimate decision-makers. The same reporting restated the live $30,000 / $200,000 framework and noted that over the prior year the fund had paid roughly 50–60% on valid claims when many claimants share one license’s ceiling. Cole also described roughly 90-day average Recovery Fund claim processing, with longer waits when every claim against a crowded license must be investigated before pro-rata math can run.

That interview is reported agency commentary, not a statute amendment. It supports the educational point that even eligible claimants can leave money on the table — it does not mean SB 1565 already raised your payout.

Source: FOX 10 — ROC explains payout limits after Sun State Pools claims.

Why Sun State Pools keeps showing up in this conversation

ROC and local news reporting (ABC15, FOX 10) describe Scottsdale pool contractor Sun State Pools LLC (ROC #339772) receiving 85 complaints between September 2025 and June 25, 2026, with the Registrar revoking the license on June 25, 2026 after the company failed to answer a citation, plus an Arizona Attorney General criminal investigation. With many claimants sharing one license’s $200,000 fund ceiling, pro-rata math is the practical risk — which is why ROC messaging stresses filing promptly.

That case is about a specialty pool contractor, not a national production homebuilder. Include it only as a public illustration of Recovery Fund timing and caps. Production-home warranty fights still start with documentation, the builder’s express warranty, and the two-year ROC complaint window — not with assuming the Recovery Fund will rebuild your house.

Sources: ABC15 — Sun State Pools revocation; FOX 10 — Sun State license revoked.

Myth to avoid

“Arizona already raised Recovery Fund payouts, so I do not need to document warranty issues early.”
Live A.R.S. still uses $30,000 / $200,000. SB 1565 did not become law in the 2026 session. ROC leadership publicly wants higher caps, but Cole’s FOX 10 interview also underscores that today’s statute — and reported proration — still leave many homeowners short. Organized photos, portal tickets, and a calendar for the two-year ROC window remain the practical first moves.

Practical next steps

• Read the statute-based Recovery Fund guide
• Confirm your contractor on the ROC contractor search
• Use the documentation checklist while warranty windows are still open
• Keep living records in the AZ HomeShield apps so ticket history is not trapped in email

Sources

• A.R.S. § 32-1132.01 ($30,000 individual award)
• A.R.S. § 32-1139 ($200,000 per-license liability)
• Arizona ROC — Recovery Fund
• SB 1565 introduced text (azleg.gov)
• FOX 10 — ROC payout limits / Sun State Pools
• ABC15 — Sun State Pools license revoked

Educational summary of public statutes, agency materials, and named news reporting — not legal advice and not a promise of Recovery Fund payment.