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Arizona State Senate — Minutes of Committee on Commerce (March 9, 2022)

Summary

These are the minutes of the Arizona State Senate Committee on Commerce for March 9, 2022, with Senator J.D. Mesnard as Chairman. HB 2120 and HB 2121 received no DO PASS recommendation, and HCR 2031 on employee benefits, compensation and state preemption was discussed, with four witnesses testifying in opposition. HB 2275 on condominium termination drew a long list of witnesses, many in support, and Greg Patterson of Rockwell Properties and Charlie Markle of Fennemore Craig in opposition, before a DO PASS vote of 5-4-0. The committee also recommended DO PASS on HB 2612, HB 2714, HB 2381, HB 2731, HB 2202, HB 2660 as amended, HB 2103, HB 2694 and HB 2822, the last by 6-3-0.

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“Arizona State Senate — Minutes of Committee on Commerce (March 9, 2022).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-03-09-commerce-minutes-23994b6b4a/, SHA-256 3e59bae316c094aad22bdc6bed16239d80c5db15b9656c470e92336ab786c3b8.

Full text

                       ARIZONA STATE SENATE
                                  55TH LEGISLATURE
                               SECOND REGULAR SESSION

                                MINUTES OF COMMITTEE ON
                                      COMMERCE

DATE:        March 9, 2022                TIME: 2:00 P.M.                   ROOM: SHR 1

CHAIRMAN: Senator J.D. Mesnard            VICE-CHAIRMAN:      Senator Michelle Ugenti-Rita

ANALYST:     Jason Theodorou


ATTENDANCE                                            BILLS


Committee Members                    Pr    Ab   Ex Bill Number               Disposition
Senator Borrelli                     X             HB 2103                   DP
Senator Bowie                        X             HB 2120                   HELD
Senator Gabaldon                     X             HB 2121                   HELD
Senator Hatathlie                    X             HB 2202                   DP
Senator Livingston                   X             HB 2275                   DP
Senator Pace                         X             HB 2381                   DP
Senator Terán                        X             HB 2612                   DP
Senator Ugenti-Rita, Vice-Chairman   X             HB 2660                   DPA
Senator Mesnard, Chairman            X             HB 2694                   DP
                                                   HB 2714                   DP
                                                   HB 2731                   DP
                                                   HB 2822                   DP
                                                   HCR 2031                  DISCUSS/HELD




Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID=6361162879&eventID=2022031041
Chairman Mesnard called the meeting to order at 4:28 p.m. and attendance was noted.

APPROVAL OF MINUTES

      Senator Mesnard stated that without objection, the minutes of March 2, 2022 were
      approved.

CONSIDERATION OF BILLS

HB 2120 - injury reports; medical treatment – HELD

Senator Mesnard stated that HB 2120 would be HELD.

HB 2121 - workers' compensation; medical-only loss – HELD

Senator Mesnard stated that HB 2121 would be HELD.

HCR 2031 - employee benefits; compensation; state preemption – DISCUSS/HELD

Caila Young, Commerce Committee Intern, explained HCR 2031.

Representative Cobb, resolution sponsor, further explained HCR 2031 and answered questions
posed by the Committee.

Senator Mesnard stated that HCR 2031 would be HELD but testimony would be taken.

Eleazar Martinez, representing himself, testified in opposition to HCR 2031.

Odalys Madrid, representing herself, testified in opposition to HCR 2031.

Hugo Polanco, Creosote Partners, Arizona Center for Empowerment, testified in opposition to
HCR 2031.

Corina Ruiz, representing herself, testified in opposition to HCR 2031.

Senator Terán offered comments.

HB 2275 - condominium termination; unit owners; percentage – DO PASS

Jason Theodorou, Commerce Committee Analyst, explained HB 2275.

Representative Weninger, bill sponsor, further explained HB 2275, distributed and discussed a letter
dated August 20, 2020, an email dated January 13, 2021, a letter dated May 3 ,2021 (Attachment A)
and a memo entitled "Arizona Legislative Council" (Attachment B). Mr. Weninger answered a question
posed by the Committee.

Jill Evans, representing herself, testified in support of HB 2275.

Suzanna Sebnekar, representing herself, testified in support of HB 2275.

                                                                               Committee on Commerce
                                               2                                         March 9, 2022
Dennis Legere, representing himself, testified in support of HB 2275.

Ellen Martinson, representing herself, testified in support of HB 2275

John Nash, representing himself, testified in support of HB 2275.

Mark Day, representing himself, testified in support of HB 2275.

Cheryl Desimone, representing herself, testified in support of HB 2275.

Ernie Ursitti, representing himself, testified in support of HB 2275.

Ken Marginson, representing himself, testified in support of HB 2275.

Jerry Bishop, representing himself, testified in support of HB 2275.

Brad Grondahl, representing himself, testified in support of HB 2275.

Anthea Harrison, representing herself, testified in support of HB 2275.

Jim Smart, representing himself, testified in support of HB 2275.

Jill Smart, representing herself, testified in support of HB 2275.

Nancy Vermeer, representing herself, testified in support of HB 2275.

Jim Jackson, representing himself, testified in support of HB 2275.

Christine Jackson, representing herself, testified in support of HB 2275.

Matt Nam, representing himself, testified in support of HB 2275.

Christine Accurso, representing herself, testified in support of HB 2275 and distributed a handout
entitled "Santana Ridge Luxury Condominiums Chandler, AZ" (Attachment C).

Greg Patterson, Rockwell Properties, testified in opposition to HB 2275 and answered questions
posed by the Committee.

Charlie Markle, Fennemore Craig, testified in opposition to HB 2275 and answered questions posed
by the Committee.

Mr. Patterson answered additional questions posed by the Committee.

Senator Mesnard referenced the distributed memo "Arizona Legislative Council" (Attachment B).

The Committee discussed HB 2275.

      Senator Ugenti-Rita moved HB 2275 receive a DO PASS recommendation. The
      motion CARRIED with a roll call vote of 5-4-0 (Attachment 1).

                                                                             Committee on Commerce
                                               3                                       March 9, 2022
The Committee explained their votes.

HB 2612 - occupational regulation – DO PASS

Jason Theodorou, Commerce Committee Analyst, explained HB 2612.

Representative Burges, bill sponsor, further explained HB 2612.

      Senator Ugenti-Rita moved HB 2612 receive a DO PASS recommendation. The
      motion CARRIED with a roll call vote of 8-0-1 (Attachment 2).

HB 2714 - office of tourism; continuation – DO PASS

Caila Young, Commerce Committee Intern, explained HB 2714.

Representative Kaiser, bill sponsor, further explained HB 2714.

      Senator Ugenti-Rita moved HB 2714 receive a DO PASS recommendation. The
      motion CARRIED with a roll call vote of 9-0-0 (Attachment 3).

HB 2381 - technical correction; sports facilities account (now: office of tourism; powers; fund)
– DO PASS

Caila Young, Commerce Committee Intern, explained HB 2381.

Representative Kaiser, bill sponsor, further explained HB 2381 and answered a question posed by
the Committee.

Debbie Johnson, Director, Arizona Office of Tourism, testified in support of HB 2381.

      Senator Ugenti-Rita moved HB 2381 receive a DO PASS recommendation. The
      motion CARRIED with a roll call vote of 8-0-1 (Attachment 4).

HB 2731 - regulatory sandbox; expansion – DO PASS

Jason Theodorou, Commerce Committee Analyst, explained HB 2731.

Representative Kaiser, bill sponsor, further explained HB 2731.

David Morris, Director, Americans for Prosperity, testified in support of HB 2731.

      Senator Ugenti-Rita moved HB 2731 receive a DO PASS recommendation. The
      motion CARRIED with a roll call vote of 6-3-0 (Attachment 5).

HB 2202 - industrial commission; fee schedule; notice – DO PASS

Jason Theodorou, Commerce Committee Analyst, explained HB 2202.

Representative Weninger, bill sponsor, further explained HB 2202.

                                                                              Committee on Commerce
                                             4                                          March 9, 2022
Barry Aarons, Arizona Association of Lawyers for Injured Workers, Injured Workers Pharmacy,
testified in support of HB 2202.

Mike Colletto, Professional Fire Fighters of Arizona, testified in support of HB 2202.

      Senator Ugenti-Rita moved HB 2202 receive a DO PASS recommendation. The
      motion CARRIED with a roll call vote of 8-0-1 (Attachment 6).

HB 2660 - liquor; licensing; processes; procedures – DO PASS AMENDED

Jason Theodorou, Commerce Committee Analyst, explained HB 2660 and the 2-line Mesnard
amendment to HB 2660 dated 03/08/2022 at 08:32 a.m. (Attachment D).

Representative Weninger, bill sponsor, further explained HB 2660 and answered a question posed
by the Committee.

Steve Barclay, Beer and Wine Distributors of Arizona, testified in support of HB 2660.

Don Isaacson, Arizona Licensed Beverage Association, testified in support of HB 2660 and
answered a question posed by the Committee.

      Senator Ugenti-Rita moved HB 2660 receive a DO PASS recommendation.

      Senator Ugenti-Rita moved the 2-line Mesnard amendment to HB 2660 dated
      03/08/2022 at 08:32 a.m. (Attachment D) be ADOPTED. The motion CARRIED by
      voice vote.

      Senator Ugenti-Rita moved HB 2660 AS AMENDED, receive a DO PASS
      recommendation. The motion CARRIED with a roll call vote of 8-1-0 (Attachment 7).

Senator Gabaldon explained her vote.

HB 2103 - trademarks; service marks; trade names – DO PASS

Caila Young, Commerce Committee Intern, explained HB 2103 and answered a question posed by
the Committee.

Representative Griffin, bill sponsor, further explained HB 2103 and answered a question posed by
the Committee.

      Senator Ugenti-Rita moved HB 2103 receive a DO PASS recommendation. The
      motion CARRIED with a roll call vote of 9-0-0 (Attachment 8).

Senator Pace explained his vote.




                                                                               Committee on Commerce
                                              5                                          March 9, 2022
HB 2694 - department of real estate; fees – DO PASS

Caila Young, Commerce Committee Intern, explained HB 2694.

       Senator Ugenti-Rita moved HB 2694 receive a DO PASS recommendation. The
       motion CARRIED with a roll call vote of 9-0-0 (Attachment 9).

HB 2822 - personal property; additional depreciation – DO PASS

Molly Graver, Finance Committee Analyst, explained HB 2822.

Representative Weninger, bill sponsor, further explained HB 2822.

Chad Heinrich, National Federation of Independent Business, testified in support of HB 2822,
discussed and distributed a memorandum regarding "Economic and Fiscal Impacts of HB 2822:
Personal Property; Additional Depreciation" (Attachment E) and answered questions posed by the
Committee.

Patrick Bray, Arizona Farm and Ranch Group, testified in support of HB 2822.

Tim Lawless, President, Commercial Real-estate Executives for Economic Development,
testified in support of HB 2822.

Mark Barnes, County Supervisors Association of Arizona, testified in opposition to HB 2822.

Ryan Boyd, Arizona Association of Counties, testified in opposition to HB 2822.

Kevin McCarthy, President, Arizona Tax Research Association, testified in support of HB 2822 and
answered questions posed by the Committee.

Mr. Barnes answered additional questions posed by the Committee.

       Senator Ugenti-Rita moved HB 2822 receive a DO PASS recommendation. The
       motion CARRIED with a roll call vote of 6-3-0 (Attachment 10).

Senator Mesnard explained his vote.

Attached is a list noting the individuals who registered their positions on the legislation (Attachment F).

There being no further business, the meeting was adjourned at 7:40 p.m.


                                                              Respectfully submitted,


                                                              Tracey Gardner
                                                              Committee Secretary

(Audio recordings and attachments are on file in the Secretary of the Senate’s Office/Resource Center, Room 115. Audio
archives are available at http://www.azleg.gov)

                                                                                             Committee on Commerce
                                                      6                                                March 9, 2022


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