Report of Regular Meeting — Committee on Commerce, Arizona House of Representatives, Fifty-sixth Legislature
Summary
Minutes of the regular meeting of the Arizona House of Representatives Committee on Commerce for Tuesday, January 16, 2024, with Representative Wilmeth as Chairman. The minutes list presentations on the Board of Technical Registration, the Registrar of Contractors, the Industrial Commission, the Occupational Safety and Health Advisory Committee, the Occupational Safety and Health Review Board, the Boiler Advisory Board and the Arizona Commerce Authority, and record committee action on HB2197. Attached request-to-speak records list supporters and opponents of HB2197, minimum wage; minor league baseball, and of each sunset review. A roll call vote sheet and a letter from Major League Baseball and the Major League Baseball Players Association on wage and hour laws also follow.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Report of Regular Meeting — Committee on Commerce, Arizona House of Representatives, Fifty-sixth Legislature.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-01-16-commerce-minutes-bf46d515f3/
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session
COMMITTEE ON COMMERCE
Report of Regular Meeting
Tuesday, Januaty 16, 2024
House Hearing Room 3 -- 2:00 P.M. OR UPON RECESS OR ADJOURNMENT OF FLOOR
Convened 2:04 P.M.
Recessed 4:02 P.M. MINUTES RECEIVED
Reconvened4:15 P.M. CHIEF CLERK'S OFFICE
Adjourned 5:51 P.M.
Members Present Members Absent
I/ I 7I ;)t/
Representative Aguilar
Representative Austin
Representative Biasiucci
Representative Carter
Representative Gress
Representative Heap
Representative Hendrix
Representative Ortiz
Representative Sun
Representative Wilmeth, Chairman
Agenda
Original Agenda - Attaclunent 1
Request to Speak
Report - Attachment 2
Committee Attendance
Report - Attachment 3
Presentations Organization Attachments((Handonts)
Paul Sterin COR AZ State Board of Technical Registration -Recommendation 8 years 4,5
COR AZ Registrar of Contractors-Recommendation 8 years 6, 7
Gutani Testini COR Industrial Commission of AZ-Recommendation 3 years 8, 9
COR Occupational Safety & Health Adviso1y Comm-Recommendation 8 years IO
COR Occupational Safety & Health Review Board-Reconnnendation 8 years 11
COR Boiler Advisory -Recommendation 8 years 12
Monette Kiepke COR Arizona Commerce Authority-Audit and Sunset Review 13
Sandra Watson COR AZ Commerce Authority 14
Sandra Watson COR AZ Commerce Authority - Recommendation 2 years, with eve1y year 15
checking in with the Committee on Commerce
Committee Action
Bill Action Vote Attachments
HB2197 DPA 6-4-0-0 16,17,18,19
~ v{okµ-_
Susan Net§on, Committee Secretaty
January 17, 2024
(Original attachments on file in the Office of the Chief Clerk: video archives available at http://www.azleg.gov)
COMMITTEE ON COMMERCE
January 16, 2024
REVISED - 1/16/24 REVISED - 1/16/24 REVISED - 1/16/24
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session
CO /JV E..IVC: d. ;o}pM
REGULAR MEETING AGENDA !<'%t!uJ.J} 'f.:o;, fM
COMMITTEE ON COMMERCE Rl- c,o NVsr\lt/J: ¥: l:i'p '1
A--DSbul<.l\lE~o: 5:s, P/v/
DA TE Tuesday, January 16, 2024 ROOM HHR3 TIME 2:00 P.M. or upon recess or
adjournment of Floor
Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID~636 l l 62879&eventID~2024011005
Members:
Representative Aguilar Representative Gress Representative Sun
Representative Austin Representative Heap Representative Cafhene, Viee Chairman
Representative Biasiucci Representative Hendrix Representative Wilmeth, Chairman
Representative Carter Representative Ortiz
1. Introduction of members and staff
2. Opening remarks
3. Acting as the Commerce Committee of Reference
a. Sunset Review of the Board of Technical Registration
i. Presentation by the Board of Technical Registration
ii. Public Testimony
iii. Discussion and Recommendation
Sunset Review of the Arizona Registrar of Contractors
i. Presentation by the Arizona Registrar of Contractors
ii. Public Testimony
iii. Discussion and Recommendation
3 C. Sunset Review of the Industrial Commission of Arizona
i. Presentation by the Industrial Commission of Arizona
ii. Public Testimony
iii. Discussion and Recommendation
d. Sunset Review of the Occupational Safety and Health Advisory Committee
(fr) i. Presentation by the Occupational Safety and Health Advisory Committee
ii. Public Testimony
iii. Discussion and Recommendation
Cb) e. Sunset
i.
Review of the OccuP.ational Safety and Health Review Board
Presentation 15yffie OCT:npat1onal-safety-and-Health Review Board
ii. Public Testimony
iii. Discussion and Recommendation
Page 1 of 2
(~) f. Sunset Review of the Boiler Advisory Board
i. Presentation by the Boiler Advisory Board
ii. Public Testimony
iii. Discussion and Recommendation
4 g. Sunset Review of the Arizona Commerce Authority
i. Presentation by the Arizona Office of the Auditor General
ii. Presentation by the Arizona Commerce Authority
iii. Public Testimony
iv. Discussion and Recommendation
Bills Short Title Strike Everything Title
HB2197 minimum wage; minor league baseball
(Biasiucci: Bliss, Contreras L, et al)
ORDER OF BILLS TO BE SET BY THE CHAIRMAN
RA
01/101202<1
01/16/2024
People with disabilities may request reasonable accommodations such as interpreters, altemative formats, or
assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at
(602) 926-3032 or through Arizona Relay Service 7-1-1.
Page 2 of 2
Attachment_/_
Information Registered on the Request to Speak System
House Commerce (1/16/2024)
HB2197, minimum wage: minor league baseball
Support:
Steven Gonzalez, representing self; Samuel Richard, representing self; Meghaen Dell'Artino, MLB
Oppose:
Francisco "Hugo" Polanco, LIVING UNITED FOR CHANGE IN ARIZONA; Gaelle Esposito, LIVING UNITED FOR
CHANGE IN ARIZONA; Natalya Brown, LIVING UNITED FOR CHANGE IN ARIZONA
All Comments:
Samuel Richard, Self: On Behalf Of I Office of the Commissioner of Baseball (PPB: 106449)
4, Sunset Review of the Board of Technical Registration
Support:
Judith Stapley, representing self; Paul Staron, representing self; Janna Day, AZ AIA AMERICAN INSTITUTE OF
ARCHITECTS; Justan Rice, American Council Of Engineering Companies Of Arizona, ARIZONA SOCIETY OF
PROFESSIONAL ENGINEERS; Kurt Winter, representing self
All Comments:
Judith Stapley, Self: Agency Director; Kurt Winter, Self: Agency Deputy
5, Sunset Review of the Arizona Registrar of Contractors
Support:
Steve Trussell, AZ ROCK PRODUCTS ASSN; David M. Martin, ARIZONA CHAPTER Of The ASSOCIATED GENERAL
CONTRACTORS OF AMERICA, INC.; Mike Gardner, AZ BUILDERS' ALLIANCE; sandy Yavapai County Contractors
Association , representing self; Juan Aldo Nunez, representing self
All Comments:
Steve Trussell, AZ ROCK PRODUCTS ASSN: ARPA supports the continuation of the Registrar of Contractors.; Mike
Gardner, AZ BUILDERS' ALLIANCE: We support the continuation of the ROC; sandy Yavapai County Contractors
Association , Self: The Core value of the ROC is critically important to not only the industry, but citizens as well.
Sunsetting can be a normal, mission-focused part of an agency life cycle however the work of the ROC Is on-going
and sunsetting is not an option; Juan Aldo Nunez, Self: I strongly support the continuation of the Arizona Registrar
of Contractors.
Attachment J--
6 1 Sunset Review of the Industrial Commission of Arizona
Support:
David M. Martin, ARIZONA CHAPTER OfThe ASSOCIATED GENERAL CONTRACTORS OF AMERICA, INC.
7, Sunset Review of the Occupational Safety and Health Advisory
Committee
Support:
David M. Martin, ARIZONA CHAPTER Of The ASSOCIATED GENERAL CONTRACTORS OF AMERICA, INC.
8 1 Sunset Review of the Occupational Safety and Health Review Board
Support:
David M. Martin, ARIZONA CHAPTER Of The ASSOCIATED GENERAL CONTRACTORS OF AMERICA, INC.
9, Sunset Review of the Boiler Advisory Board
Support:
David M. Martin, ARIZONA CHAPTER OfThe ASSOCIATED GENERAL CONTRACTORS OF AMERICA, INC.
10, Sunset Review of the Arizona Commerce Authority
Support:
Joe Galli, Flagstaff Chamber of Commerce, Greater Flagstaff Chamber Of Commerce; Michael Vargas, Government
Affairs Representative, APS, AZ PUBLIC SERVICE COMPANY (APS); Tony Bradley, President and CEO, Arizona
Trucking Association; Dianne McCallister, Arizona Technology Council; Steve Trussell, Arizona Mining Association,
AZ ROCK PRODUCTS ASSN; Chuck Bassett, Blue Cross Blue Shield Of AZ; David M. Martin, ARIZONA CHAPTER Of
The ASSOCIATED GENERAL CONTRACTORS OF AMERICA, INC.; Terri Kimble Chandler Chamber, CHANDLER
CHAMBER OF COMMERCE; Mike Huckins, GREATER PHOENIX CHAMBER OF COMMERCE; Brittany Bingold,
REPUBLIC SERVICE INC; Neil Giuliano, GREATER PHOENIX LEADERSHIP INC; Matthew Ligourl, SOUTHWEST GAS
CORP; Alan Eder, Salt River Project; Grace Appelbe, AZ Manufacturers Council; Brittney Kaufmann, HEALTH
SYSTEM ALLIANCE OF ARIZONA; Laura French, TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY, LTD.;
Brad Kiesling, representing self; Courtney Coolidge, AZ CHAMBER OF COMMERCE
Oppose:
Greg Blackie, AZ FREE ENTERPRISE CLUB; Randal Scott, representing self; Charles McCain, representing self;
Stephen Harris, representing self; Linda Jorgensen, representing self; Dianna Gates, representing self; LouAnn
Sedgwick, representing self; Sue Unverricht, representing self; Frank Jorgensen, representing self; Nancy Osgood,
representing self; Vicki Roller-Chow, representing self; Michael Mote, representing self; Pam Throw, representing
self; Wayne Throw, representing self; Susan Gavigan, representing self; robert wolk, representing self; Lynda
Patrick-Hayes, representing self; Kay Bateman, representing self; Barbara Scott, representing self
All Comments:
Joe Galli, Greater Flagstaff Chamber Of Commerce: We are for the continuation of the ACA, who has assisted
expansion of economic opportunity throughout Arizona. We are particularly grateful for their work on creating
opportunities for expanded rural broadband access, which has benefited Flagstaff.; Tony Bradley, Arizona Trucking
Association: ACA has been a critical partner for the State by helping to bring jobs to Arizona.; Dianne Mccallister,
Arizona Technology Council: We support the continuation of the Az Commerce Authority. Over the last ten years
Arizona has become one of the nation's technology hubs. A lot of that has been due to the work done by the
Commerce Authority, including in manufacturing growth.; Steve Trussell, Arizona Mining Association, AZ ROCK
PRODUCTS ASSN: ARPA and AMA support the continuation and work of the Arizona Commerce Authority.; Chuck
Bassett, Blue Cross Blue Shield Of AZ: AZ Blue supports the continuation of the Arizona Commerce Authority.; Mike
Huckins, GREATER PHOENIX CHAMBER OF COMMERCE: The Greater Phoenix Chamber supports the continuation
of Arizona Commerce Authority.; Brittany Bingold, REPUBLIC SERVICE INC: We strongly support the continuation of
the Arizona Commerce Authority.; Alan Eder, Salt River Project: Supportive of continued collaboration between the
public and private sectors to further economic development in Arizona.; Brad Kiesling, Self: On behalf of Republic
Services, we strongly support continuation of the Arizona Commerce Authority.; Randal Scott, Self: no thanks I;
Linda Jorgensen, Self: End organizations that are no longer of benefit.; Dianna Gates, Self: Do not extend the
Arizona Commerce Authority.; LouAnn Sedgwick, Self: I am a PC & State Committee member. It's time to repeal
the ACA, it's nothing but a big slush fund I; Sue Unverricht, Self: The Auditor found that the AZ Commerce Authority
is poorly managed with 91 employees which misspent $2.4 million from 2018 - 23. A fraud risking waste of
taxpayer money. Shut it down I; Barbara Scott, Self: no thanks doesn't work for mel
PLEASE COMPLETE THIS-FORM FOR-tHE PUBLIC RECORD
- - - - - - • -- •- - • - • - •- • - • -- - - • - • • • - - -- -- ••• • - • •• • · • • • •••••• • • -• • •- •• • "'• ~ -• ~ -- - - • • - • • • • - - - •• • •-•• • •• •--• • • • • - -• •• • -- -• • - •• , . - - • : - . I
HOUSE OF REPRESENTATIVES
Please PRINT Clearly
Committee on \\ollje_ Covnrvit ru Ci'JR B1tl~eL ACA ~JJ\Set Rev.~
Date Cf~ /b 2b 2 L/ ~ upport O Oppose O Neutral
. Name DlCt ~~LO Y\leco. \ l,fu r Need to Speak? ( yes □ No
Representing f\7.,.~c b C~oLlfu. \ Are you a registered lobbyist? ~
Complete Address 1 :-&i Q E tOY~ 12oJ --:Sc o+Lscto. IL. lSSd$·7
E-mail Address dta JLdLf {tv,0\.?:3 ( .cor-v1 Phone Number LtD9, -,-
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Comments:
- - - - - - - -- -------------
***FIVE-MINUTE SPEAKING LIMIT***
ARIZONA STATE LEGISLATURE
Fifty-sixth Legislature - Second Regular Session
COMMITTEE ATTENDANCE RECORD
COMMITTEE ON COMMERCE
CHAIRMAN: ----'J=u=st=inc..:cW--=-:i=lm=e=th'-------- VICE-CHAIRMAN: _ _ _ _ _ __
DATE 01/16/24 /24 /24 /24 /24
CONVENED :J:o.fpm m m m m
RECESSED '-I: o) .PJ/1
RECONVENED '-/ : I 5'p I'\
ADJOURNED 5:5/1>1-
MEMBERS
Aguilar ✓
Austin ✓
Biasiucci ✓
Carter ./
Gress ✓
Heap ✓
Hendrix ✓
Ortiz ✓
Sun ✓
, Vice-Chairman
Wilmeth, Chairman ✓
✓ Present Absent exc Excused
Attachment 3
Sunset Audit Review
Committee of Reference
2024
Arizona State Board of Technical Registration-Est. 1921
"The purpose of this chapter is to provide for the safety, health
and welfare of the public through the promulgation and
Arizona State enforcement of standards of qualification for those individuals
Board of who are registered or certified and seeking registration or
certification pursuant to this chapter!'
Technical
Registration
Judith Stapley
Executive Director
I IAZBTR 1
Attachment_.1_
The Board registers or certifies the following professions.
Registered professions (colloquially referred to within the agency as the "Big Five")
• Architects
• Engineers (the Board designates 17 branches of engineering)
• Geologists
• Land Surveyors
• Landscape Architects
Certified professions
• Alarm Agents
• Alarm Business Controlling Persons
• Home Inspectors
Additionally, the Board licenses firms/branches and alarm businesses.
I IAZBTR 2
! 90/10 Self Funded Agency !
• The Board operates as a 90/10 self-sustaining Board. Pursuant
to A.R.S. § 32-109, the Board deposits 10% percent of its
revenue into the State general fund and deposits 90% of its
11
revenue into the Board's Technical Registration Fund."
• The regulation of the Board's multiple professions allows the
Board to develop a revenue base sufficient to accomplish its
m1ss1on.
I IAZBTR 3
Multiple Pathways of Licensure for the Board's Registered Professions
1. Traditional: Degree + Experience+ Exams
2. Experience only: Experience + Exams
3. Universal Licensure: Licensed in good standing in another jurisdiction for at least one
year + established residency in Arizona
Requirements for the Board's regulated professions
• An applicant must show 96 months of experience (72 for land surveyors) and proof
of passing the applicable national examinations (land surveyors must also pass a
state-specific exam).
• The Board does not require education, but education does count toward
experience.
!• National examinations may be waived if statutory requirements are met. 1 I
IAZBTR 4
National Councils of Examination
• National Council of Architectural Registration Boards (NCARB)
• National Council of Examiners for Engineering and Surveying (NCEES)
• The Council of Landscape Architectural Registration Boards (CLARB)
• Association of State Boards of Geology (ASBOG)
The National Examination Councils Qrovide:
• Uniform and psychometrically sound computer-based examinations
• "Council Records"
• Mutual recognition agreements
• Disciplinary action databases
I Certification of Home Inspectors I
• National examination ,~~,.:-.,,:.,c:::"---.,._o"'t?-
,,..~~o''"-.;,
• 84 hours of classroom training
• 30 parallel inspections
I Certification of Alarm Agents I
• Fingerprint Clearance Card.
• Temporary Certification
I
IAZBTR 6
I Efficient Licensing Process
•Delegated authority to the Executive Director
•Use of "Council Records"
•Pool of unpaid volunteer subject matter experts
{Enforcement Advisory Committee {EAC)members)
•Home inspections assessor
•Full licensing staff
•Communication with registrants
I
IAZBTR 7
[ Efficient Investigations
•Complaint intake
•In itia I assessments
•Enforcement Advisory Committees (EAC) Volunteers
•Informal Settlements (Consent Agreement)
•Hearings at the Office of Administrative Hearings
•Inter-agency Service Agreement (ISA) with Attorney
General's Office
I
IAZBTR 8
I Rule making I
• 2017-Omnibus Rule Changes
• 2020 - Regarding Home Inspector Financial Assurance
• 2020 - Regarding Land Surveying Standards
• 2023- Regarding Home Inspector Standards
• 5-year Rule Review due March 2024
I IAZBTR 9
I Bills I
• 2019 - HB2037 licensure through endorsement
• The bill passed through the House and Senate with no
opposition
• The governor subsequently vetoed the bill.
[ Possible Future Bills
• Licensure through endorsement.
• Educational program for land surveying
• Endowed Scholarship Fund
• Restructure of the Board Member Composition I
IAZBTR 10
: : 1111
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session
ROLL CALL VOTE Je-M-OI 11~~1
COMMITTEE ON _ _ _ __ __Co_m_m_er_ce_ _-C,_~o~fZ~,8.......,..[~ILL NO. - - ~ - -
DATE - - - - ~ = - = ' - - , < . . -16,
January - ' -2024
- = - ' - = = = - a . . - - - -~-- --~.,._~
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PASS AYE NAY PRESENT ABSENT
Aguilar ✓
Austin ✓
Biasiucci ✓
Carter ✓,,
Gress ✓
Heap ✓
Hendrix ✓
Ortiz v
Sun ✓
, Vice-Chairman
Wilmeth, Chairman ✓
q 0 0 I
7 COMMITTEE SECRETARY
N WILMETH, Chairman
, Vice-Chairman
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• 90% of licensing fees fund agency operations through the ROC Operations Fund
(agency budget).
• The remaining 10% of licensing fees are deposited in the State General Fund.
• The agency does not receive State General Fund money.
• In FY 2023 the agency contributed $1.4M to the State General Fund.
• Since FY 2013 the agency has deposited $15.6M into the State General Fund.
• The Residential Contractors' Recovery Fund is funded through a separate
assessment.
• Licensing - Receives and processes applications and license maintenance
requests (for example, personnel changes).
• Compliance - Investigates alleged violations of licensed and unlicensed
contracting laws.
• Legal and Recovery Fund - Support licensing and compliance departments,
conduct informal settlement conferences, direct contested cases and appealable
agency actions through OAH, administer Residential Contractors' Recovery Fund.
• Outreach and Education - Educate the public and contractors regarding statutes,
rules, policies and operations of the agency and develop and support
construction-related programs designed to benefit the public.
• 14 Licensing Account Professionals
• The ROC regulates approx. 51,500 current contractor licenses.
• Process license applications and renewals
o 6,361 new license applications submitted in 2023
o 21,589 renewal applications submitted in 2023
• Process service/maintenance requests
o Approximately 26,000 each year
• Fee waivers for U.S. military veterans and low income qualified applicants are
accessible through the AZ ROC Customer Portal.
• Trade specific testing is administered by a third party vendor, PSI Exams.
Over the past 12 months our legal department has handled:
• 400 hearings at the Office of Administrative Hearings
• 114 informal settlement conferences conducted (71 complaints settled prior to hearing)
• Reviewed 109 petitions for criminal record review, and qualified 100 petitioners
In 2023, the Registrar's Residential Contractors' Recovery Fund compensated:
• 393 claimants
• $4,953,329
• In the last 5 years, decreased days to issue payment from 180 days to 100 days.
Individual awards limited to $30,000, with a $200,000 maximum liability per license. Where
valid claims against a license exceed this amount, individual awards are paid on a prorated
basis.
Represented by Attorney General's Office:
• AGO's Licensing and Enforcement Section represents ROC in appealable agency actions,
JRA appeals of agency decisions, & civil recovery fund matters
• AGO's Bankruptcy Collection & Enforcement Division assists ROC in collecting debts,
including Recovery Fund payments and civil penalties.
• 38 Investigators across Arizona
• Investigate licensed complaints and ensure compliance with statutory
requirements
o 6,287 submitted in 2023
• Investigate unlicensed entity complaints
o 1,249 submitted in 2023
• Develop and enforce minimum standards of Workmanship, guided by established
usage and procedure in the Arizona construction industry.
• Current average timeframe to close a complaint is 33 days, compared to 120-140
days in 2015.
• Contractor Outreach • Task Force Against Senior Abuse (TASA)
o Applicant Education Seminars • Partnerships with County Attorneys and AGO
o New Licensee Forums • Workforce Development
o Licensed Contractor Forums o AZ ROC Construction Science Technology
o Trade Association Forums Apprenticeship Fair at Chase Field
• Community Outreach/ Consumer Protection o Construction Career Days Events (Phoenix,
o Homeowners Association Presentations Tucson & Yuma)
■ SCHOA (Sun City Homeowners o Veteran Events (Statewide Symposium and
Association), Barrio Anita State of AZ Hiring Event)
Neighborhood Association (Tucson) o High School Career Fairs (Districts:
o Retirement Community Expos Buckeye, Mesa, Phoenix)
■ PORA (Property Owner & Residents o SkillsUSA State Conference
Association - Sun City West), CantaMia o BuJlditAZ Apprenticeship lnitiati)le
at Estrella (Goodyear); Venture Out
(Mesa), Palmas del Sol (Mesa)
o On the Road with Let Joe Know
Total # of people reached in 2023 =29,847 / Total # of people reached since FY 2020 =62,254
Over 71,000 searches of the ROC Contractor Search by more than 22,500 citizens in 2023.
• Industry Advisory Council (IAC)
o Kicked off in October 2023
o Formed in order to offer advice and counsel to support and advance AZ
ROC's mission to protect the public by promoting quality construction in
Arizona.
o Comprised of professionals who represent various fields within the
construction industry.
• Initiated an update to Workmanship Standards in collaboration with industry
experts.
• Spanish Initiative
o Increase the number of documents and materials available in spanish
o Ensure that each ROC department has the capacity to assist customers in
spanish
• AZ ROC Customer Portal launched in September 2019
o 93% of new applications submitted online
o 75% of renewal applications submitted online
o 84% of complaints submitted online
• Improved time from application to granted license
• Technological efficiencies enabled closure of satellite offices
• Agency documentation and procedures through each department to
increase clarity and consistency, significant reduction in use of paper
Operations
• Legislative Liaison
• Office management
• Agency communications - mailroom, phones & reception desk
• Accounting - Payroll, budget, fees, financial reporting
• Continuous Improvement
Human Resources
• 99 current employees - 465 years total ROC experience
• Employees are valued - Telework options, tuition reimbursement, support
for career development
• Income vs. Expenses
• Agency brick and mortar footprint right-sizing
• Aging Fleet
• Need for an updated full performance audit
F'Y2.018 F'Y2.019 F'YZ02.0 F'Y2.0ZI F'Y2.02.2. F'Y2.0Z3
Revenue $8,006,745 $8,717,845 $8,532,337 $9,076,958 $9,691,085 $10,992,877
Expense $8,669,300 $9,529,100 $10,526,400 $10,671,700 $10,574,200 $11,190,900
P/L $662,555 $811,255 $1,994,063 $1,594,742 $883,115 $198,023
$6,143, 753*
F'YZOI8 F'Y2.019 F'Y2.02.0 FMZOZl 6'¥202.Z F'Y2.02.3
Cash Balance $8,193,397 $7,389,800 $5,327,300 $3,990,000 $2,896,938 $2,699,071
*Reflects expenses related to the implementation of the Salesforce CRM software and AZ ROC Customer Portal = $2M
• With the change in leadership and a realignment of our reporting structure, we have
trimmed over $105,000 from our annual payroll budget.
• Working with ADOA to reduce physical footprint to match current business practices
o Current rent is $393,500 per year
o Most recent info from ADOA, upwards of $200,000 savings is likely
• Renegotiation of software license - DocuSign
• Initiating a plan to reduce paper usage and postage expense dramatically by
replacing full sized letter mailers with postcards, eliminating paper ID cards, and
emailing statutorily required documents.
Licensing Fees (Incl. Processing Fee, Exel. RF Assessment)
1250 • Gen Residential
• Spec Reslden!ial
~ Gen Commercial
1000
e Spec Commercial
• Gen Dual
>'~.
~~z{
Spec Dual
750 ~------- ·~ -
500 ~ 6
250 e-
0------------------------------
The Registrar of Contractors is a dedicated team of state employees - professionals
and experts - who are focused on facilitating qualified applicants to become licensed
contractors, to hold existing licensed contractors accountable for the quality of their
work, investigate unlicensed entities, bring thieves and fraudsters to justice, educate
the public as to the advantages of hiring licensed contractors, and promote the
development of a quality construction workforce in the State of Arizona.
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session
ROLL CALL VOTE
Commerce C,DR f l / : ~ C\su3Jic,,~
r
COMMITTEE ON
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DATE ------"-J=an=u=ar-y_,_1=6,i...:;:2=0=-24"----_ _ _ _ _ _ __1'1~0M~ ,J,i,L-
~ JA-C,
PASS AYE NAY PRESENT ABSENT
Aguilar ✓
Austin ✓
Biasiucci ✓
Carter ✓
Gress ✓
Heap ✓
Hendrix ✓
Ortiz ✓
Sun ✓
, Vice-Chairman
Wilmeth, Chairman ✓
l, D 0 0 0
7coMMITTEE SECRETARY
IN WILMETH, Chairman
, Vice-Chairman
ATTACHMENT_ _ 1__
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CLAIMS DMSION
The Claims Division regulates the workers' compensation industry by ensuring that claims are
processed in compliance with the law, maintains the official record for all Arizona workers'
compensation claims, processes portions of the claims, and provides training and instruction
_to system participants.
NUMBER OF WORKERS' COMPENSAITON CLAIMS FILED
(FISCAL YEAR)
Point of Improvement
To better serve injured workers who are
navigating the workers' compensation system,
the ICA has increased its Ombudsman team from
one person to four.
Point of Improvement
The Medical Resource Office publishes the Fee Schedule in October every year. This
puts stakeholders a year behind on pharmaceutical costs. The MRO will be
publishing the Fee Schedule earlier in the calendar year.
LEGAL DMSION
Through its Legal Division, the Commission investigates employers, educates employers, and
initiates civil penalties against uninsured employers. The Legal Division uses information from
the National Council on Compensation Insurance coverage database to identify employers
whose insurance coverage either is about to lapse, or has lapsed.
INSURED AS A RESULT OF OUR EFFORTS (IRE)
(FISCAL YEAR)
991
Point of Improvement
• Legal has engaged in significant rulemaking
updating and modernizing A.AC. Title 20.
• The Legal Division has expanded the ICA
attorney training program aimed at making
all lCA attorneys certified workers'
compensation specialist.
In FV23, the Special Fund reimbursed 570 apportionment
requests and had an annual expenditure cost of amount of
$2.86 million related to apportionment.
Point of Improvement
The annual expenditures for vocational rehabilitation in FY23 total $229,237. The
Special Fund is looking to increase vocational rehabilitation by holding trainings
at the Industrial Commission for injured workers.
ADOSH - COMPLIANCE
Under the authority found in A.RS.§ 23-401, ADOSH conducts unannounced inspections of
workplaces throughout Arizona to determine whether employers are complying with the
Occupational Safety and Health Act and standards. Inspections may be the result of imminent
danger, a workplace fatality, a referral, a complaint, a planned inspection, or a follow-up to verify
previously cited violations have been corrected.
Point of Improvement
The Industrial Commission of Arizona will be
reorganizing ADOSH to allow for greater customer
service by creating an ADOSH Administrative
Division to handle complaints and public records
requests.
Agriculture
6%
ADOSH - CONSULTATION
ADOS H's Consultation program is responsible for all safety and health education and training
services, including onsite consultation visits, seminars, and the preparation and distribution of
video and written materials, and newsletters.
Point of Improvement
The Industrial Commission of Arizona will be looking
to expand and strengthen its partnership programs.
ADOSH ADVISORY COMMITTEE
The Arizona Occupational Safety and Health Advisory Committee was established in 1972
under A.RS.§ 23-409{A} to provide recommendations and assistance to the Industrial
Commission of Arizona in the drafting of standards and regulations.
BOILER ADVISORY BOARD
The Arizona Boiler Advisory Board ("Board"} was established in 1977 under A.RS.§ 23-474(2) to
assist the Industrial Commission of Arizona ("Commission") in the drafting standards and
regulations related to boilers, lined hot water heaters, and pressure vessels ("boilers").
The Board consists of 5 members appointed by the Commission.
OSHA REVIEW BOARD
Employers who believe that the Arizona Division of Occupational Safety and Health {ADOSH)
has made errors in its findings, or imposed too large of a fine for violations, after an
administrative hearing at the Office of Administrative Hearings {"OAH"), pursuant to A.R.S. §
23-420 may appeal to the Review Board for relief, pursuant to A.RS.§ 23-423.
In FY23, the ALJ Division:
• Held 5,759 workers' compensation hearings.
• Issued 4,902 written decisions.
t;'-;
•
-~ ◄
Point of Improvement
Mediation offered by the ALJ
Division requires the voluntary
agreement of all interested parties
and can be requested at any time.
Mediation within the ALJ Division
has tripled from 19 in FY21 to 60 in
FY23.
LABOR DEPARTMENT
/
The Industrial Commission of Arizona Labor Department is responsible for the enforcement of '
Arizona's payment of wage, minimum wage, earned paid sick time, and youth labor laws.
"
WAGE CLAIMS OPENED AND RESOLVED (FISCAL YEAR)
Point of Improvement
For the past three years the Division has been
able to resolve more cases than it opens.
T K
u
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session
ROLL CALL VOTE
COMMITTEE ON _ _ _ _ _ _ _C_om
_m_e_rc_e_ C _ o _ ~ - ~ - - -rqo ~
Ill.LL __·__•
~ 1
·lljf
~~3
DATE ------=J=an"'""u=a'-'-rv---'1..=c6,'--"2=0=-24-'--_ _ _ _ _ _ _ _M0Tl6N-:- _ _ _ _ r
1,c, f)
PASS AYE NAY PRESENT ABSENT
Aguilar ✓
Austin ✓
Biasiucci ✓
Carter ✓
Gress /
Heap ✓
Hendrix ✓
Ortiz v
Sun ✓
, Vice-Chairman
Wilmeth, Chairman ✓
\0 0 0 0
/ COMMITTEE SECRETARY
STIN WILMETH, Chairman
, Vice-Chairman
ATTACHMENT_~
1 _ __
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session
ROLL CALL VOTE
M - A-
DATE
~~A)/w\JJ; 0 J.Jt,(j,11,/r~ ,) i~<Y
u
PASS AYE NAY PRESENT ABSENT
Aguilar v
Austin ✓
Biasiucci ✓
Carter v
Gress ✓
Heap ✓
Hendrix ✓
Ortiz ✓
Sun v
, Vice-Chairman
Wilmeth, Chairman ✓
10 C) (9 e>
/COMMITTEE SECRETARY
STIN WILMETH, Chairman
, Vice-Chairman
ATTACHMENT_ ____;_/_0_ _
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session
ROLL CALL VOTE
_o_m_me_rc_e_ _ _ _~_ cBILLi>-½9.J~*
COMMITTEE ON _ _ _ _ _ _C w.
+
~ r;a~d,Jf)M(
~_6
f, I
DATE _ _ _ _ _--"'J=an...:..:u=a'-,Lry___,1...:.6i....:,2=0=-24-=-------rr~-----~N:
flJJL,COMvlN\l,v~~
r
PASS AYE NAY PRESENT ABSENT
Aguilar ✓
Austin ✓
Biasiucci ✓
Carter ✓
Gress ✓
Heap v
Hendrix ✓
Ortiz v
Sun ✓
, Vice-Chairman
Wilmeth, Chairman ✓
lo B C) 0
WILMETH, Chairman
, Vice-Chairman
ATTACHMENT /(
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session
ROLL CALL VOTE pJ-c.. I
COMMITTEE ON Commerce e.D R ij+LL NO:- I ' B~
DATE-
-~~=---=-"---_n_
January 16, 2024
. - · M _ l '_·· _l>ru~~-
~ y <;?~
_£}_
~ (fftt(fat}
P/t'CTIVI~
PASS AYE NAY PRESENT ABSENT
Aguilar ✓
Austin ✓
Biasiucci ✓
Carter ✓
Gress v
Heap ✓
Hendrix ✓
Ortiz v
Sun ✓
, Vice-Chairman
Wilmeth, Chairman ✓
/D 0 C) C)
/ COMMITTEE SECRETARY
WILMETH, Chairman
, Vice-Chairman
ATTACHMENT_ _
/)..__
_ __
Arizona Commerce Authority
Performance Audit and Sunset Review
Presenter: Monette Kiepke
Date: January 16, 2024
~ONA
~~~!~~~2.~;~~~!
Attachment / .3
• Background information
• Problems identified
• What led to the problems
• Why the problems matter
• Key recommendations
• Additional recommendations
• Information from questions and answers ~ONA
~dl!~!~~o~I~:.~!
• Established in 2011
• Board consists of 19 voting members: Governor, ACA
CEO, and 17 Governor/State-appointed private sector
business leaders
• Sandra Watson serves as Chief Executive Officer
• We conducted AC/\s previous sunset review in 2015
~ON
~d}.!~!~~~,~!.~!
• Administers various tax incentives and grants
o Reviews tax incentive applications, assesses whether
applicants meet eligibility requirements, and approves
applicants
o Awards Competes Fund grant monies, administers grant
agreements, and verifies eligibility and performance
• Manages the State's broadband office
~ON
~~~~~~~~/~~~!
• Contracts for foreign trade offices
• Assists entrepreneurs, businesses, and manufacturers
• Assists with workforce development
• Administers fund to bid on and host major events and
program to promote film production in the State
• Hosts events for business executives
{FizoN
~dJ,!~!~f~,~~~
• Appropriately approved all 10 Qualified Facility tax
credits we reviewed as applicants met capital
investment and wage requirements
• Distributed Arizona Coronavirus Relief Fund donation
monies we reviewed for approved purposes, including
personal protective equipment and grant monies to
nonprofits supporting vulnerable citizens
~ON
~~!!~r2.~D,~!.~!
• Developed community profile reports providing
population and economic information for 15 counties
and 92 urban and rural communities
• Offers small business bootcamp and rural economic
development webinars to help businesses in urban
and rural areas
~ONA
~d!,!~fE,~.~;~~~
ACA lacked evidence showing it verified businesses
met some requirements when reviewing and
approving nearly $11 million in financial incentives
~ONA
~dj!,~f~~~.~~~
ACA lacked documentation it verified business-reported
information for:
• Job creation for 21 Quality Jobs tax credits totaling
$7 .5 million
• Capital investment for a $306,000 tax credit
• Job creation for more than $3.4 million in grant monies
paid to 4 businesses
~ON
~d!,!~fE,~~,~:,~
• ACA lacked evidence it verified some business-
reported information and did not always document
grant application, review, and award information
• Our 18-month followup published in 2017 found:
o ACA developed policies and procedures for verifying information
but failed to fully verify information for 1 grant we reviewed
o ACA identified what information should be documented
~ONA
~~!!~~~f.~.~~~l
Lack of verification documentation increases
risk of fraud and waste of public monies
~ONA
~~!!~!~~,~~~
Ensure tax credit and grant recipients meet all
requirements prior to approving tax credits or
distributing grant monies by developing procedures for:
• Verifying business-reported information
• Documenting verification
{FzoNA
~~!!~!.~~~~~~!
ACA coordinating the implementation of local, State, and
federal broadband programs, including:
• $100 million in broadband development grant awards to
20 awardees it announced in July 2022
• $1 billion Broadband, Equity, Access, and Deployment
(BEAD) Program grant
GzoNA
~~!!~!,~~~,~~~!
• ACA planned to distribute monies but had not
established policies and procedures for administering
grant programs or overseeing contractor
• This increases risk of misuse and inaccurately
accounting for and reporting on use of grant monies
• ACA could be responsible for repaying monies to federal
government
~ONA
~~~~~~~.~,~~~!
• As of April 2023, ACA contracts for 7 trade offices:
o Guanajuato, Mexico o Frankfurt, Germany
o Chihuahua, Mexico o Tel Aviv, Israel
o Mexico City, Mexico o Seoul, South Korea
o Taipei, Taiwan
• Contacts we reviewed were generally consistent
with recommended practices and included
performance measures
~ONA
~~!!~!~f.~~:.~!
ACA did not:
• Provide documentation it verified trade offices'
reported progress in achieving contractual
performance measures
• Monitor trade office performance to ensure
deliverables were received
• Address trade office nonperformance
~ONA
~~~~~~~o~I~~~!
Number.of Arizona Number offoreign direct
businesses assisted Relatedexport sales investment leads
Annual Goal 30 30 $2.5 million $2.5 million 30 30
Actual 19 14 0 0 55 24
Percentage
63% 47% 0% 0% 183% 80%
of goal met
(FizoNA
~~~~~~~~,~~~
• Develop policies and procedures for verifying trade
offices' reported progress in achieving contractual
performance measures
• Monitor trade office performance to ensure
deliverables are received and take actions to address
trade office nonperformance
(FzoNA
~~!!~~~~~~~~!
1. Benefits and activities for CEO Forum attendees and when they occur
2. Why CEO Forums are held
3. Who attended CEO Forums
4. How much CEO Forums cost
5. What the State received in return for the monies spent on CEO Forums
6. ACA's CEO Forums policies and State Accounting Manual compliance
7. ACA's assessment of compliance with Arizona Constitution gift clause
~ONA
~~!!~!~~,~~~!
• ACA reported CEO Forums were marketing campaigns
held around the Waste Management Phoenix Open golf
tournament and the 2023 Super Bowl
• Attended by private sector executives, their spouses,
and ACA staff
(FizoNA
~~!!~!e~:,,~,~;,~!
Education events $65,076
Transportation and lodging 193,226
Social and entertainment events
Super Bowl sponsorship package 1,850,000
WMPO suite 288,600
Birds Nest VIP and other concert or theater tickets 41,958
Gifts, wine, desserts 7,643
GzoN
~~!!~f~~.~,~:,~
Year
2018 16 13
2019 20 16
2020 18 15
2022 15 8
2023 67 66
Total 136 118
@ONA
d},!~!~f.~~~~
ACA reported 23 of 118 companies whose executives
attended CEO Forums proposed nonbinding investment
and jobs commitments in Arizona
• Per ACA, CEO Forums were not the only reason companies
proposed potential investments and jobs
• Encouraging companies to invest in Arizona takes multiple
conversations/interactions, sometimes years of relationship
building
~ONA
~~!!~!p~~~,~~~!
• Exempt from State accounting manual, which prohibits
purchasing alcohol, establishes acceptable lodging
rates, and requires documentation of public purpose for
providing food and beverage
• Exempt from State procurement, but must adopt its
own policies, procedures, and procurement practices
~ONA
~cl!,!~~~~~,~~!
• Arizona Constitution's gift clause requires payment of public
monies is for a public purpose and value received is not far
exceeded by consideration paid
• ACA reported it consulted with in-house legal counsel and
third-party attorney to ensure CEO Forums comply with State
laws and regulations
• ACA cited that the jobs and investments from companies that
have participated in CEO Forums outweigh Forum cost
~ONA
~d!,!~!.~~~I~:.~!
Arizona Commerce Authority
Performance Audit and Sunset Review
Presenter: Monette Kiepke
Date: January 16, 2024
GzoNA
~d}.!~~~~.~,~(~!
~
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ACA APPROACH
VISION
Arizona is the premier global destination for business and innovation, with an economy that delivers opportunity for all
Arizonans.
MISSION
To continually grow and strengthen Arizona's economy by helping businesses in targeted, high-growth industries create
quality jobs statewide for Arizona citizens.
ARIZONA
COMMERCE AUTHORITY
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INTERNATIONAL FOOTPRINT
REPUBLIC ~• .,
OF KOREA ~ ~
SEOUL
EUROPE -
FRANKFURT,
GERMANY
ISRAEL
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MEXICO
MEXICO CITY
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Overview - ACA Performance Audit
Summary:
• Audit conducted Jan. - Sept. 2023
• The Auditor General's performance audit included 17 recommendations.
• The ACA agreed to all findings and committed to implementing all
recommendations.
• The ACA has taken action to implement all 17 recommendations.
• In addition, the ACA has contracted with Accenture to review the ACN.s
implementation plan to ensure all recommendations are met.
ARIZONA
COMMERCE AUTHORITY
Accenture Report
,~
\_ ' (
(oco;
Sunset Audit ACA Response Counter Processes/ '-v'
Guidelines Checklists . r~--l.., 2,,o6
Report Response Workplan measures Procedures '
Response Domain
Leads Experts
0 REVIEW 0 ASSESS e INTERVIEW
e
l
SUNSET AUDIT REPORT REVIEW
For each audit recommendation
Auditor Recommendation -► ACA Response
ACA Implementation Plan
_,, Accenture Review and
Assessment
ARIZONA
COMMERCE AUTHORITY
Accenture Finding
"Accenture reviewed ACA's implementation plan for each of the
recommendations, the resulting changes to policies,
procedures, and processes, and actions taken to date to
incorporate these in ACA's way of working. Based on this
review, Accenture finds the ACA's response to the audit report
is thorough and comprehensive. Upon full completion of the
implementation plan, the State should be confident that all audit
recommendations have been fully satisfied."
>
accenture
ARIZONA
COMMERCE AUTHORITY
Recommendations 1-3
Quality Jobs and A 1 Competes
Summary:
Ensure procedures for verifying recipient reported information is fully documented for Quality
Jobs and A1 Competes programs, including verifying job information and documenting
supervisory review process.
ACA Actions:
The ACA updated its written checklists for reviewing recipient information, including detailing
its 2-party review process and clarifying policies related to job verification such as verification
of offered health insurance coverage, wage information, and more.
ARIZONA
COMMERCE ,;UTHORITY
Recommendations 4-5
A1 Competes
Summary:
Ensure procedures for verifying recipient reported information for A1 grantees is fully
documented, including current procedures in place for verifying health insurance information,
economic impact requirements, and wage information, while documenting how ACA conducts due
diligence when making award decisions.
ACA Actions:
The ACA updated A1-related documentation for its procedures to verify recipient information, as
outlined above. In addition, the ACA updated its CEO Statement related to A 1 grantees to include
an estimated median wage, when available, in addition to average wage, which is already
included, and updated its written standard work to better document current practice of conducting
rigorous due diligence for all A1 grantees.
ARIZONA
COMMERCE AUTHORITY
BIGGER GOALS FOR THE NEXT 5 YEARS
2023 - 2027
ARIZONA
COMMERCE AUTHORITY
ARIZONA BROADBAND DEVELOPMENT
GRANT PROGRAM lndeperident
_,.,.,,..;"' -A
~NE~~ Apache County lands $1 0 million in
grants to bolsterlnternet
ACA allocates $1 00Min broadband grants to
20 awardees in rural and urban Arizona
· INVESTED AZMIRROR
Arizona broadband expansion
projects are getting a $100 million
infusion ofcash
State, Cox bringing in broadband
14 RURAL & 6 URBAN .:\ri;;;ona Dailu Star
AWARDEES AZEDNEWS r'f, tucson,com ~
Grants bring broadband intemetto families in Altar Broadband internet upgrades
Valley School Districtand business & residents in coming to rural areas ofTucson
Three Points, Robles Junction and Sycamore
Springs thanks to Cox & Pima County Partnership
...:irflERALD/REVIE\V
~~Y~9:)
, .. ·,• c,'.Cs•-'<•••",., WO"
Willcox to receive fiber optic
infrastructure investment
LOCAL MATCHING FUNDS Cities in rural Pima County to receive
high-speed fiber network
11lE ARIZONA
ARIZONA REPUBLlC
PUBLIC MEDIA. High~speed internet comes to
High-speed internet is on its way to Douglas Douglas, other rural Arizona
communities through grant
ARIZONA
COMMERCE AUTHOR!TY
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TOTAL PIPELINE BY PROJECT TYPE
Business Attraction & Expansion
RESEARCH&
MANUFACTURING HEADQUARTERS OFFICE LOGISTICS DATA CENTER DEVELOPMENT TRAINING FACILITY
43 PROJECTS 24 PROJECTS 7 PROJECTS 5 PROJECTS
JOBS: 125,393 JOBS: 7,346 JOBS: 2,332 JOBS: 2,611 JOBS: 1,957 JOBS: 983 JOBS: 678
$270.SB CAPEX $27B CAPEX $304.SM CAPEX $1B CAPEX $36.9B CAPEX $2.2B CAPEX $110.SM CAPEX
WAGES: $61,080 WAGES: $79,232 WAGES: $73,224 WAGES: $49,626 WAGES: $81,647 WAGES: $109,461 WAGES: 100,947
403 PROJECTS 141,831 JOBS
TOTAL $338.4B CAPEX $62,842 WAGES
•4 PROJECTS LISTED IN OTHER
ARIZONA
COM1'v\ERCE AUTHORITY
-
-
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session
ROLL CALL VOTE
1, -t/ ~A- ~ t ~c,hJ:>\_
QonM,# ee D)
ft~::1:ce•
W I ~\... -~
COMMITTEE ON _ Co_m
_ _ __ _ _ _m_er_ce_ fl_o_____,Oe---
\ -A -::; -~- BILL NO.
DATE -------"'J=an-=-=u=a'-J.ry--'1-=6,L.::2=0=-24.,_,~,__--G
--"---
~-,---,----~ . ~~if
~1)0 ~ L '~
,
PASS AYE NAY PRESENT ' ABSENT
Aguilar ✓
Austin ✓
Biasiucci ✓
Carter ✓
Gress ✓
Heap ✓
Hendrix ✓
Ortiz ✓ -
Sun ✓
, Vice-Chairman
Wilmeth, Chairman ✓
l ~ c) 0
\tOMMITTEE SECRETARY
IN ILMETH, Chairman
, Vice-Chairman -----
ATTACHMENT_~LS
_ __
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
HB 2197: minimum wage; minor league baseball
Sponsor: Representative Biasiucci, LD 30
Committee on Commerce
Overview
An emergency measure that allows certain employers to designate fixed paydays for minor
league baseball players. Exempts minor league baseball players from statutory 1tlinimum
wage and recordkeeping requirements.
History
Title 23, Chapter 2, A.R.S., governs employment practices and working conditions, including
requirements for payment of wages, minimum wages and employee benefits.
Pursuant to A.R.S. § 23-351, Arizona employers must designate at least two fixed paydays a
month for payment of wages to their employees. However, employers who have a principal
place of business located out-of-state and whose payroll system is centralized otitside of
Arizona may designate one or more fixed paydays a month for payment of wages to:
1) professional, administrative or executive employees or employees employed in the
capacity of an outside salesman; and
2) employees employed in a supervisory capacity.
The ability for employers to designate at least one fixed payday a month for specified
employees does not apply to employees whose salaries are subject to provisions of collective
bargaining agreements.
Employers are required to post notices in the workplace informing employees of their rights
relating to minimum wage and employee benefits. Additionally, employers must maintain
payroll records showing the hours worked for each day and the wages and earned paid sick
time paid to all employees for a period of four years (A.R.S. § 23-364).
Provisions
1. Permits employers with a payroll system centralized outside of Arizona to designate at
least one fixed payday a month to employees who have a contract to play minor league
baseball and who are compensated under the terms of a collective bargaining agreement.
(Sec. 1)
2. Exempts employees who have a contract to play minor league baseball and who are
compensated under the terms of a collective bargaining agreement from statutory
minimum wage requirements or recordkeeping requirements concerning hours worked
relating to minimum wage, subject to the Proposition 105 requirements. (Sec. 2, 3)
3. Contains an emergency clause. (Sec. 4)
GJ Prop 105 (45 votes) □ Prop 108 (40 votes) 181 Emergency (40 votes) □ Fiscal Note
HB 2197
Initials PB Page 1 Commerce
Attachment__Lk
Fifty-sixth Legislature Commerce
Second Regular Session H.B. 2197
PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H. B. 2197
(Reference to printed bill)
1 Page 1, strike lines 2 through 43
2 Strike Page 2
3 Page 3, strike lines 1 through 24
4 Renumber to conform
5 Amend title to conform
JUSTIN WILMETH
2197WILMETH . docx
01/12/2024
11: 01 AM
H: PB/ls
Adopted~ # of Verbals_
Failed _ __ Withdrawn
·---
Not Offered_ Analysts Initials
Attachmentfl
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session
ROLL CALL VOTE
COMMITTEE ON
- - - - - - -Commerce
- - -- - - -- - BILL NO. HB 2197
DATE ------=-J=an-'--"u=ary:....,_.;.1-=6,1.....:2=0=-24-'----_ _ _ _ _ _ _ _MOTION: :Q PA
PASS AYE NAY PRESENT ABSENT
Aguilar V
Austin t
✓
Biasiucci ✓
Carter ✓
Gress ✓
Heap v
Hendrix ✓
Ortiz ✓
Sun v
, Vice-Chairman
Wilmeth, Chairman ✓
(p LI 0 0
Uc6MMITTEE SECRETARY
IN WILMETH, Chairman
, Vice-Chairman
ATTACHMENT / '6
MAlllA LU.UE BASEULL
,••
PLAYERS
Januaiy I0, 2024
The Honorable Katie Hobbs
Governor, State of Arizona
The Honorable \Varren Petersen
President, Arizona State Senate
The Honorable Mitzi Epstein
Minority Leader, Arizona State Senate
The Honorable Ben Toma
Speaker, Arizona State House of Representatives
The Honorable Lupe Contreras
Minority Leader, Arizona State House of Representatives
Dear Governor Hobbs, Senate President Petersen, Minority Leader Epstein, Speaker Toma, and Minority Leader
Contreras:
On behalf of Major League Baseball and its thirty Clubs (collectively "MLB") and the Major League Baseball Players
Association (the ' 1Players Association"), the labor union representing all domestic Minor League Players employed
by an MLB Club ("Players"), we write to clarify our joint position on the treatment of Minor League Players
represented by the Players Association under various wage and hour laws.
\Ve write to express our joint support for legislation that would provide a narrowly tailored exemption from wage and
hour laws (including minimum wage, overtime and recordkeeping requirements) that otherwise could apply to Players,
in deference to the compensation and benefit provisions of the new collective bargaining agreement negotiated by the
Players Association, on behalf of Players, and MLB, ("Minor League CBA"), provided the exemption would only
apply to Players during the period in which they are compensated pursuant to the terms of the CBA.
The new Minor League CBA treats Players as salaried employees in which they receive weekly salaries throughout
the calendar year (with the exception of a brief period around the holidays when Players are off and not permitted to
perform work for their Clubs). Other benefits Players will receive under the Minor League CBA include but are not
limited to health benefits, retirement benefits, housing benefits, and salaiy continuation in the event of disability
resulting from a work-related injmy. For this reason, we agree that Players who are receiving the compensation and
benefits negotiated by the patties as set forth in our Minor League CBA covering the 2023-2027 seasons should be
treated as "exempt" salaried professionals and, as such, need no recourse to sue for minimum wage, overtime and
recordkeeping violations for the duration of the Minor League CBA.
Daniel Halem
Deputy Commissioner
Major League Baseball
~»
Tony Clark
Executive Director
Major League Baseball Players Association
Attachmentj!j_.
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