Arizona House of Representatives Committee on Commerce Meeting Minutes and Bill Summaries

Summary

Minutes of the regular meeting of the Arizona House of Representatives Committee on Commerce, Fifty-fourth Legislature, Second Regular Session, held Tuesday, March 10, 2020, with attachments. The report records action on six Senate bills, including SB 1275 (department of gaming; continuation), SB 1024 (out-of-network claims; balance billing; disputes), SB 1331 (self-insured employers; deviation continuation) and SB 1229 (securities; exempt transactions). Attachments include the agenda, the request-to-speak report, the attendance record, House staff bill summaries, a proposed House amendment to S.B. 1024 and roll call votes. The SB 1275 summary states the bill continues the Arizona Department of Gaming until July 1, 2026, and the SB 1331 summary describes extending the 10% deviation rate through calendar year 2022.

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

Full text

Convened 2:41 P.M.
Recessed

Reconvened

Adjourned 3:18 P.M.

Members Present

Mr. Biasiucci

Ms. Butler

Ms. Epstein

Mr, Kern
Mr. Meza

Mr. Roberts
Mr, Grantham, Vice-Chairman
Mr. Weninger, Chairman

Agenda

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

COMMITTEE ON COMMERCE

Report of Regular Meeting
Tuesday, March 10, 2020

House Hearing Room 3 -- 2:00 P.M.

Members Absent

Mr. Chavez

Original Agenda — Attachment 1

Request to Speak

Report — Attachment 2

Committee Attendance

Report — Attachment 3

Committee Action

Bill
SB1275
SB1024
SB1331
SB1096
SB1162
§B1229

Action
DP
DPA
DP

DP

DP

DP

Vote

6-0-0-3
8-0-0-1
8-0-0-1
7-0-1-1
6-1-0-2
7-0-0-2

MINUTES RECEIVED
CHIEF CLERK'S OFFICE
31-20
Attachments
4,5
6, 7, 8
9,10
11,12
13, 14
15, 16

Iris McMahon, Committee Secretary

March 12, 2020

(Original attachments on file in the Office of the Chief Clerk; video archives available at http://Avww.azleg.gov)

COMMITTEE ON COMMERCE
March 10, 2020
ARIZONA HOUSE OF REPRESENTATIVES '
Fifty-fourth Legislature - Second Regular Session 4 AterneX . 3 ‘13 Mad

REGULAR MEETING AGENDA
COMMITTEE ON COMMERCE
DATE Tuesday, March 10, 2020 ROOM HHR3 TIME 2:00 P.M.
Members:

Mr. Biasiucci Ms, Epstein Mr. Roberts

Ms. Butler Mr. Kern Mr, Grantham, Vice-Chairman

Mr, Chavez Mr. Meza Mr. Weninger, Chairman

Bills Short Title Strike Everything Title

network claims; balance billing; disputes)
(Brophy McGee)
per COM, RULES

1} SB1096 er pri-l ee. management records; residential rentals
—_—_——- (Pace

D id COM, RULES

* . lot ear .
SE SB1162 é el-Oed Guay) of contractors
—————. (Gray

D Pp COM, RULES

C *SBI229 securities; exempt transactions.
G_ep-o-R P
(Pace: Lieberman)

DY? COM, RULES

| *$B1275 b0-2 3 department of gaming; continuation
—__——. (Ugenti-Rita}

DY COM, RULES

3 *$B1331 8 ov bl self-insured employers; deviation continuation
a
———__— (Livingston)

DP COM, RULES

2. SB1024 gy <0-8+l technical correction; public health(now: out-of-

* On previous agenda
ORDER OF BILLS TO BE SET BY THE CHAIRMAN
im
03/04/2020

People with disabilities may request reasonable accommodations such as interpreters, alternative 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 1 of 1

Attachment |
Information Registered on the Request to Speak System

House Commerce (3/10/2020)

$B1024, technical correction; public health (NOW: out-of-network
claims: balance billing; disputes)

Testified in support:
Marc Osborn, AMERICA'S HEALTH INSURANCE PLANS {AHIP), Blue Cross Blue Shield Of Arizona

Support:
Paul Senseman, Arizona Complete Health; Mike Huckins, GREATER PHOENIX CHAMBER OF COMMERCE

SB1275, department of gaming; continuation

Testified in support:
Aiden Fleming , AZ DEPT OF GAMING

Oppose:

Diane Leischow, representing self

All Comments:
Diane Leischow, Self: absurd, we need regulations for obvious effects that could happen without them

$B1096, property management records; residential rentals

Support:

Tom Farley, Arizona Association Of Realtors

$B1331, self-insured employers; deviation continuation

Support:
Emily Rice, AZ SELF-INSURERS ASSOC; Steven Eddy, UNS ENERGY CORPORATION; Mike Huckins, GREATER PHOENIX
CHAMBER OF COMMERCE; Courtney Coolidge, AZ CHAMBER OF COMMERCE

$B1162, registrar of contractors

Testified in support:
Jim Knupp, AZ REGISTRAR OF CONTRACTORS

Attachment_ 2 -
Support:
Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ

$B1229, securities; exempt transactions.

Testified in support:
Paul Efron, representing self
ARIZONA STATE LEGISLATURE
Fifty-fourth Legislature - Second Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Jeff Weninger VICE-CHAIRMAN: _ Travis W. Grantham
DATE 02/11/20] 2/18 120) .3/; 9/20 /20} «120
CONVENED Ap 3G fm digs pm m m
RECESSED
RECONVENED
ADJOURNED EVN Z:15 0m! 3:19. 0m
MEMBERS
Biasiucci J J V4
Butler vA J J
Chavez J JV mee
Epstein WA vi WA
Kern v4 Vv 4
Meza J J J
~ Roberts f y¥ /
Grantham, Vice-Chairman J vA A
Weninger, Chairman V4 v Y
. Present -- Absent exc Excused

Attachment 3
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature

Second Regular Session

Senate: COM 5-0-3-0 | 3° Read 30-0-0-0

a a SE
SB 1275: department of gaming; continuation
Sponsor: Senator Ugenti-Rita, LD 23
Committee on Commerce

Overview
Continues the Arizona Department of Gaming (ADG) for six more years.

History
The Senate Commerce and House Commerce Committees of Reference (COR) held a public

meeting on November 12, 2019, to review the performance audit prepared by the Office of the
Auditor General, evaluate the ADG's responses to sunset review factors and receive public
testimony. The COR recommended that the Legislature continue the ADG for four years, and that
the Arizona Boxing & MMA Commission sunset date be moved from July 1, 2026, to July 1, 2024,
for the purposes of aligning the sunset dates of the ADG, Arizona Racing Commission, and
Arizona Boxing & MMA Commission (COR final report). The ADG terminates on July 1, 2020,
unless continued by the Legislature. (A.R.S. § 41-3020.16)

Established in 1995, the Arizona Department of Gaming monitors Indian gaming operations as
well the regulation of commercial horse and dog racing, pari-mutuel waging, boxing and mixed
martial arts. The Department is responsible for the regulating tribal gaming activities in
accordance with the Arizona tribal-state gaming compacts. The Department has established
control to verify that tribes are contributing the appropriate amount of gaming monies to the State
and local governments, as required by the Compact.

Provisions
1. Continues, retroactive to July 1, 2020, the ADG until July 1, 2026.

2. Repeals ADG's governing statutes January 1, 2027.
3. Contains a purpose statement.

[1 Prop 105 (45 votes) CO Prop 108 (40 votes) Emergency (40 votes) 1 Fiscal Note

SB 1275
Page 1 Cammerce

Attachment_“{_

Initials
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. SB 1275
DATE March 10, 2020 MOTION: D pr
PASS AYE NAY PRESENT | ABSENT

Biasiucci ~

Butler “

Chavez 4
Epstein ~~
Kern WA

Meza S

Roberts J

Grantham, Vice-Chairman WA

Weninger, Chairman /

(y 0 0 3

APPROVED; COMMITTEE SECRETARY

JEFF WENINGER, Chairman
TRAVIS W. GRANTHAM, Vice-Chairman

ATTACHMENT 3~
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature
Second Regular Session

Na

SB 1024: out-of-network claims; balance billing; disputes
Sponsor: Senator Brophy McGee, LD 28
Committee on Commerce

Overview
Permits a self-funded or self-insured employee benefit plan to opt-in to the out-of-network claim

dispute resolution process. Establishes a balance billing dispute resolution process for health care
services organizations (HCSO).

History
Laws 2017, Chapter 190, established a process for an enrollee who has received a surprise out-

of-network bill to seek a dispute resolution for the disputed amount. A surprise out-of-network bill
is a bill for a health care service that was provided in a network facility by a health care provider
that is not a contracted provider and that meets certain criteria to qualify as a surprise out-of-
network bill. The dispute resolution process consists of an informal settlement teleconference and
arbitration. The Department of Insurance (DO)) is required to develop a simple, fair, efficient, and
cost-effective arbitration procedure for surprise out-of-network bill disputes, as well as specify
time frames, standards and other details for the arbitration proceeding. The Department must
submit an annual report on the resolution of disputed surprise out-of-network bills (A.R.S. § 31 18).

DO! reported receiving 91 dispute resolution inquiries during 2019. Of these, 53 cases had been
resolved by December 31, 2019; 21 of these cases qualified for dispute resolution, and 32 did not
qualify.

Balance billing, or a surprise medical bill, indicates a difference between a provider's charge and
the amount allowed by an individual's health care plan. This occurs when a patient goes to an in-
network hospital and is treated by an out-of-network doctor. (DOI)

A health care services organization is defined as any person that undertakes to conduct one or
more health care plans. Unless the context otherwise requires, HCSO includes a provider

sponsored HCSO. (A.R.S. § 20-1051)

Provisions
1) Permits the Director of the DOI to use monies from the Health Care Appeals Fund to perform

the administrative function of the out-of-network claim dispute resolution process. (Sec. 1)

2) Stipulates the out-of-network claim dispute resolution process applies to a self-funded or seif-
insured employee benefit plan that is otherwise preempted from state regulation by the
Employee Retirement Income Security Act of 1974 (ERISA) if the entity that administers the
plan enters into a written agreement with DOI to voluntarily comply with the dispute resolution
requirements. (Sec. 4)

a) Specifies the Director must agree to allow the plan's enrollees to participate in the dispute

resolution and arbitration proceedings. (Sec. 8)

[J Prop 105 (45 votes) 1 Prop 108 (40 votes) © Emergency (40 votes) i Fiscal Note

SB 1024
Page 1 Commerce

Initials

Attachment G
3)

4)

5)

6)

2)

8)

9)

b) Authorizes the Director to charge a fee for entering into a written agreement in an amount
determined by the Director. (Sec. 8)

Applies out-of-network claim dispute resolution laws to certain health plans and state health
and accidental coverage for state employees. (Sec. 4)

Specifies the applicability of dispute resolution laws does not negate or limit an HSCO's
obligation to its members to ensure that covered health care services are delivered in
accordance with each member's health care plan. (Sec. 4)

Asserts an HCSO enrollee is not a party to any payment dispute between the HCSO and a

health care provider.
a) Requires the enrollee to be held harmiess for certain disputed amounts. (Sec. 4)

Permits an HCSO that receives or a health care provider that seeks to collect a disputed
balance bill to seek dispute resolution of the balance bill by filing a request for arbitration with
DOI not later than one year after the date of service noted in the claim, if all of the following
apply:
a) The enrollee has resolved any health care appeal that they may have had against the
HCSO following the HCSO's initial adjudication of the claim.
i) Tolls the one-year period for requesting arbitration from the date that the enrollee files
a health care appeal to the date of final resolution of the appeal;
b) The enrollee has not instituted a civil lawsuit or other legal action against the HCSO or the
health care provider related to the same claim or the health care services provided; and
c) The amount of the balance bill for which the HCSO is responsible is at least $1,000. (Sec.
6, 7)
Requires the health care provider to participate in an inform settlement teleconference with
an authorized HCSO representative if an HSCO requests dispute resolution of a balance bill.
a) Stipulates the teleconference is terminated if either party fails to attend, and the HSCO,
within 14 days after the scheduled teleconference, may request that DOI set the case for

arbitration. (Sec. 6)
Applies the requirements for conducting an arbitration proceeding of a surprise out-of-network
bill dispute to balance bill disputes of an HSCO, (Sec. 7)
Declares an enrollee is not a party to any balance bill dispute between an HCSO and a health

care provider.
a) Requires the HCSO and the health care provider to hold the enrollee harmless for the

balance bill amount. (Sec. 7)

10) Requires the health care provider to refund any overpayment by an HCSO within 30 days

after resolution of the claim. (Sec. 7)

11) Contains a legislative intent clause. (Sec. 9)
12)Defines balance bill, health care services organization and modifies the definition of

contracted provider, health plan and network facility to include a health care services
organization. (Sec. 3)

13) Makes technical changes. (Sec. 2, 5, 7)

SB 1024

Initials Page 2 Commerce
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Fifty-fourth Legislature Commerce
Second Regular Session S.B, 1024

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1024

(Reference to Senate engrossed bill)

Page 1, line 36, strike “OUT-OF-NETWORK"; after "SURPRISE" insert
"OUT-OF -NETWORK"
Line 43, after "bill" insert "OR BALANCE BILL"
Page 2, lines 12 and 44, after “insurer's” insert "OR HEALTH CARE SERVICES
ORGANI ZATION'S®
Page 3, line 8, after "TO" insert “BOTH OF THE FOLLOWING:
Lt. FULLY INSURED HEALTH PLANS ISSUED BY HEALTH INSURERS AND HEALTH
CARE SERVICES ORGANIZATIONS.
2. SUBJECT TO THE DETERMINATION PRESCRIBED IN SUBSECTION 8 OF THIS
SECTION,”
Between lines 14 and 15, insert:
“B. IF <A  SELF-FUNDED OR SELF-INSURED EMPLOYEE BENEFIT PLAN IS
SUBJECT TO THIS ARTICLE, THE DEPARTMENT SHALL DETERMINE WHETHER A SURPRISE
OUT-OF-NETWORK BILL OR BALANCE BILL IS SUBJECT TO THE PROCESS PRESCRIBED IN
SECTION 20-3114 OR 20-3114.01 BY EVALUATING WHETHER THE PLAN IS
SUBSTANTIALLY SIMILAR TO A HEALTH PLAN ISSUED BY A HEALTH INSURER OR HEALTH
CARE SERVICES ORGANIZATION."
Reletter to conform
Line 35, after "DISPUTE" insert “UNDER THIS ARTICLE”
Page 8, line 23, strike “foe” insert “for the health care services at issue in
the county where the"

Amend title to conform

JEFF WENINGER

1024WENINGER

202
03/06/2020 Attachment /

5:22 PM

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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1024

DATE March 10, 2020 MOTION: ?P Pfr
PASS AYE NAY PRESENT | ABSENT

Biasiucci /

Butler A

Chavez Y

Epstein J

Kern JS

Meza WA |

Roberts WA

Grantham, Vice-Chairman WA

Weninger, Chairman VA

$ | op 6 ;

APPROVED: COMMITTEE SECRETARY

JEFF WENINGER, Chairman >
TRAVIS W. GRANTHAM, Vice-Chairman

ATTACHMENT. VA
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature
Second Regular Session

ep SS

SB 1331: self-insured employers; deviation continuation
Sponsor: Senator Livingston, LD 22
Committee on Commerce

Overview
Continues the deviation rate for calculating taxes or assessments paid by self-insured employers

for two more years.

History
By law, employers are required to secure workers' compensation for their employees in one of

two ways: 1) By insuring and keeping insured the payment of workers’ compensation with an
insurance carrier authorized by the Director of the Arizona Department of Insurance to write
workers’ compensation insurance in Arizona; or 2) furnishing to the Industrial Commission of
Arizona (ICA) satisfactory proof of financial ability to pay the compensation directly or through a
workers’ compensation poo! approved by the ICA.

Every self-insured employer, including workers’ compensation pools, is required to pay an annual
tax of not more than three percent of the premiums that would have been paid by the employer if
the employer had been fully insured by an insurance carrier authorized to transact workers’
compensation insurance during the preceding calendar year (A.R.S. § 23-961).

Laws 2011, Chapter 157 established a 10% deviation rate for calculating any tax or assessment
to be paid by an authorized self-insured employer, including a workers' compensation pool for

calendar years 2013, 2014 and 2015. Laws 2014, Chapter 35 continued the deviation rate from
the tax through calendar year 2020.

Provisions
1. Extends the 10% deviation rate for calculating taxes or assessments paid by self-insured

employers through calendar year 2022.

( Prop 105 (45 votes) LF Prop 108 (40 votes) © Emergency (40 votes) 1 Fiscal Note

SB 1331
initials Page 1 Commerce

Attachment vi
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1334
DATE March 10, 2020 MOTION: DP

PASS AYE NAY PRESENT | ABSENT
Biasiucci /
Butler J
Chavez S
Epstein V
Kern /
Meza VA
Roberts JS
Grantham, Vice-Chairman WA
Weninger, Chairman /

6 D o {
APP PVED: COMMITTEE SECRETARY

JEFF WENINGER, Chairman
TRAVIS W. GRANTHAM, Vice-Chairman

ATTACHMENT 72

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

aa
SB 1096: property management records; residential rentals
Sponsor: Senator Pace, LD 25
Committee on Commerce

Overview
Outlines additional places in which a property management firms are permitted to keep records.

History
Property management firms must keep a residential rental agreement and related documents for

one year from the expiration of the rental agreement or until the documents are given to the owner
upon termination of any property management agreement. Firms must keep records of all finder
fees for tenants for three years after the payment is made or until the records are given to the
owner at the termination of the property management agreement. The records must be kept at
the broker's main office or at an off-site storage location in Arizona if the broker provides prior
written notice of the storage location to the Department of Real Estate (Department) (A.R.S. § 32-

2175).

Provisions
Property Management Records (Sec. 1)

1. Includes any lease amendments and addenda to the list of documents that a property
management firm must keep for one year after the expiration of the rental agreement or until
the agreement and related documents are given to the owner at the termination of any

property agreement.
a. Specifies related documents may include rental applications with tenant-identifying

information, move-in forms or default notices.
2. Mandates that all records must be kept at either: 1) the broker's main office or branch office,
2) electronically, or 3) at an off-site storage location in this state if the broker provides the

Department prior written notification and a street address of the off-site storage location.
a. All records include residential rental agreements, finder fees, financial records pertaining

to clients, and nonresidential real estate lease agreements.
3. Specifies off-site storage location includes a multi-family leasing office.

4. Requires trust account records be kept in accordance with statute pertaining to trust money
deposit requirements.

[] Prop 105 (45 votes) C Prop 108 (40 votes) © Emergency (40 votes) 1 Fiscal Note
SB 1096

Caramarsra

Initials Page 1

Attachment Ht
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __ SB 1096
DATE March 10, 2020 MOTION: DC

PASS AYE NAY PRESENT | ABSENT
Biasiucci JY
Butler VA
Chavez Aa
Epstein “a
Kern /
Meza /
Roberts /
Grantham, Vice-Chairman MA
Weninger, Chairman WA

qT |? /

PPROVED;, _

JEFF WENINGER, Chairman

TRAVIS W. GRANTHAM, Vice-Chairman

pe zee The ow

COMMITTEE SECRETARY

ATTACHMENT 7A

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

EEE

SB 1162: registrar of contractors
Sponsor: Senator Gray, LD 21
Committee on Commerce

Overview
Makes various changes to the Registrar of Contractors (Registrar) statutes.

History
The Registrar was established to license and regulate residential and commercial contractors.

The Registrar is appointed by, and serves at the pleasure of, the Governor. In order to obtain a
license, an applicant must have a certain level of experience, pass a written examination, post a
bond and pay a license fee. The applicant may be required to submit fingerprints for a criminal
records check. The Registrar is required to maintain a complete indexed record of licensed
contractors in the state as well as applications and licenses issued, renewed, terminated,
cancelled, revoked or suspended. The Registrar also investigates complaints against contractors
and is authorized to suspend or revoke a license, conduct hearings, issue citations and assess

civil penalties (A.R.S., Title 32, Chapter 10).

The Registrar administers the Residential Contractors’ Recovery Fund which pays claims to
homeowners who have been financially harmed by a licensed contractor. The Fund is financed
by contractor-paid assessments collected at the time licenses are issued or renewed.

A qualifying party is a person who is responsible for a licensee's actions and conduct performed
under the license who either has an ownership interest in the license or is regularly employed by

the licensee (A.R.S. § 32-1101).

Provisions

Qualifying Party (Sec. 1)

1. Specifies a qualifying party's work experience documentation and verification must be waived
if the qualifying party is or has been a qualifying party for a licensee in this state or another
state in the same or comparable classification and meets all other qualifications.

2. Clarifies a qualifying party must complete a frade examination.

a. Revises the topics of the exam.
b. Specifies the trade examination must be waived if the qualifying party is or has been a
qualifying party for a licensee in the state or another state in the same or comparable

classification within the preceding five years.

3. Requires a qualifying party to complete a written statue and rules examination on general

knowledge of Registrar of Contractor statutes and rules.
a. Specifies the statute and rules examination must be waived if the qualifying party is or has
been a qualifying party for a licensee in this state within the preceding five years.

Disassociation of Qualifying Parties (Sec. 3)

4. Requires either the licensee or the qualifying party, rather than both, to notify the Registrar
within 15 days after a disassociation.

SB 1162
initials Page i Commerce

Attachment. / 2
10.

11.

12.

13.

14.

15.

16.

17.

18.
19,

20,

Stipulates the Registrar, upon receiving notice from a qualifying party who disassociates with
a licensee, must notify the licensee of the disassociation.
a. Outlines the contents of the notice.

Requires a licensee to obtain a qualifying party exemption or requalify through another person
within 60 days after the date of the Registrar disassociation notice, rather than within 60 days

after the disassociation.

Specifies the license is automatically suspended if the Registrar notifies a licensee of the

disassociation and the licensee fails to:
a. Receive a qualifying party exemption; or
b. Requalify through another person within 60 days after notification.

Residential Contractors’ Recovery Fund (Fund)
Specifies monies in the Fund may no longer be used for attorney fees or costs in contested
cases appealed to the superior court. (Sec, 5)

Specifies the Registrar satisfies, rather than requiring the Registrar to satisfy, any unpaid
claims any unpaid claims when sufficient monies have been deposited into the Fund. (Sec. 8)

Unlicensed Contracting (Sec. 9)

Removes the 10-business-day timeframe in which the Registrar must remove a person who
meets specified criteria from the list of persons found to be contracting without a license

Modifies the criteria for removing a person from the list of persons found to be contracting
without a license.

Licensure
Allows for an annual license renewal! without claiming the biennial requirements would cause
a hardship. (Sec.2)

Suspends, rather than requiring the Registrar to suspend, a license on notice from the
Department of Revenue that the licensee has incurred and neglected to pay a tax debt. (Sec.

10)

Prohibits a person named on a suspended license from being named on another license,
unless the person shows that all loss due to the act or omission for which the license was

suspended has been satisfied. (Sec. 13)

Prohibits a person named on a revoked license from being named on another license for one
year after the revocation. (Sec. 13)

Miscellaneous

Removes the ability of the Registrar, on the Registrar's own motion, to investigate the acts of
a contractor. (Sec. 10)

Removes the requirement on a licensee to answer in writing to a complaint after the Registrar
issues a citation. (Sec. 11)

Clarifies the statute of limitations on filing a complaint with the Registrar. (Sec. 12)

Requires, rather than permissively require, a person to cease and desist from an action under
a cease and desist order. (Sec. 14)

Makes technical changes. (Sec. 1, 4, 5, 6, 7, 11, 12, 15)

C) Prop 105 (45 votes) CO Prop 108 (40 votes) [1 Emergency (40 votes) 1 Fiscal Note

SB 1162

Initials Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. SB 1162
DATE March 10, 2020 motion: DP?
PASS AYE NAY PRESENT | ABSENT
Biasiucci /
Butler J
Chavez /
Epstein , J
Kern J
Meza J
Roberts J
Grantham, Vice-Chairman "4
Weninger, Chairman J
C ( 0 py
Ahece Tne Vhrhirl
APPROVED: COMMITTEE SECRETARY

JEFF WENINGER, Chairman
TRAVIS W. GRANTHAM, Vice-Chairman

ATTACHMENT. / 7
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature

Second Regular Session

Senate: COM DP 8-0-0-0 | 3° Read 18-12-0-0

pe SE
SB 1229: securities; exempt transactions.
Sponsor: Senator Pace, LD 25
Committee on Commerce

Overview
Exempts certain security transactions from registration and filing requirements.

History
The registration, offering and sale of securities in the state of Arizona are regulated by the Arizona

Corporation Commission under the Arizona Securities Act, which protects state residents from
the fraudulent offering of securities in accordance with rules set forth by the United States
Securities and Exchange Commission (SEC) and applicable state laws.

Offer to sell or offer for sale is defined as an attempt or offer to dispose of, or solicitation of an
order or offer to buy, a security or interest in a security for value or any sale or offer for sale of a
warrant or right to subscribe to another security of the same issuer or of another issuer. Any sale
or offer for sale of a security that gives the holder thereof a present or future right or privilege to
convert such security into another security of the same issuer or of another issuer shall be deemed
an offer to sell the security to be acquired pursuant to such right or privilege, but the existence
thereof shall not be construed as affecting the registration or exemption under this chapter of the

security to which it attaches. (A.R.S. § 44-1801)

In accordance with Federal law, a public offer or sale of eligible securities are exempt from
registration requirements by the SEC and the Securities Act of 1933 in which the sum of the
aggregate offering price and aggregate sales does not exceed $50,000,000, including not more
than $15.000,000 offered by all selling securityholders that are affiliates of the issuer. Additionally,
certain restrictions apply to unaccredited investor are subject to a cap of 10% of the purchaser's
annual income or net worth or 10% of the purchaser's revenue or net assets. (17 CFR §§ 230.251-

20.263)

Provisions
1. Exempts security transactions made by an issuer and outlined entities of the issuer who offer

or sell securities of the issuer pursuant to Federal law from certain registration and filing

requirements.
a. Limits the transaction to an aggregate offering price and sale of $50,000,000 including no

more than $15,000,000 offered by all selling securityholders that are affiliated with the
issuer. (Sec. 1)

2. Makes technical changes. (Sec. 1)

(J Prop 105 (45 votes) 1 Prop 108 (40 votes) 1 Emergency (40 votes) [1 Fiscal Note

SB 1229

Initials MCL Page 1 Commerce

Attachme

nt 2
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILLNO. $B 4229 __
DATE March 10, 2020 MOTION: Dd ?
PASS AYE NAY PRESENT } ABSENT

Biasiucci /

Butler WA

Chavez v4

Epstein J

Kern J

Meza /

Roberts WA

Grantham, Vice-Chairman /

Weninger, Chairman /

a ) Oo 2
APPROVED: COMMITTEE SECRETARY
a
AL
JEFF WENINGER, Chairman
TRAVIS W. GRANTHAM, Vice-Chairman
/o

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