Arizona House of Representatives Committee on Commerce Meeting Minutes - January 26, 2021

Summary

Minutes of the regular meeting of the Arizona House of Representatives Committee on Commerce, Fifty-fifth Legislature, First Regular Session, held Tuesday, January 26, 2021, with Mr. Weninger as Chairman. The minutes record committee action on nine measures: HB2118 (DPA 9-0-1-0), HB2119, HB2120, HB2160, HB2161, HB2172, HB2243, HB2267 and HCR2014. Attachments include the agenda, the Request to Speak report listing supporters and opponents of each bill, the attendance record, bill summaries and roll call votes. The HB 2118 summary describes penalties for enterprises that violate the law on furnishing tobacco and vapor products, with fines from $500 to $750 for a first violation up to $3,000 to $5,000. The HCR2014 summary describes a resolution expressing support for a U.S.-Taiwan partnership.

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

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

COMMITTEE ON COMMERCE

Report of Regular Meeting
Tuesday, January 26, 2021
House Hearing Room 3 -- 2:00 P.M.

C ned 2:03 P.M. 5 SiN EE psec co

Recessed MINUTES RECEIVED
aE CHIEF 6LERK’
Reconyened K'6 OFFICE

Adjourned 4:04 P.M. )-2 6-2]

Members Present Members Absent
Mr. Chaplik

Mr. Cook

Mr. Espinoza

Mrs. Fernandez

Mr. Meza

Ms. Nutt

Ms. Powers Hannley

Mr, Wilmeth

Mr. Kaiser, Vice-Chairman
Mr. Weninger, Chairman

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Committee Action
Bill Action Vote Attachments
HB2118 DPA 9-0-1-0 4,5, 6
HB2119 DP 10-0-0-0 7,8
HB2120 DP 10-0-0-0 9, 10
HB2160 DP 9-1-0-0 11, 12
HB2161 DP 7-2-1-0 13, 14,15
HB2172 DP 10-0-0-0 16, 17
HB2243 DP 9-1-0-0 18, 19
HB2267 DP 10-0-0-0 20, 21
HCR2014 DP 8-2-0-0 22, 23

brie Ne hiher

Iris McMahon, Committee Secretary
January 28, 2021

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

COMMITTEE ON COMMERCE
January 26, 2021
REVISED - 1/21/21 REVISED - 1/21/21 REVISED - 1/21/21

ARIZONA HOUSE OF REPRESENTATIVES lonyenedcA 6 A OF
Fifty-fifth Legislature - First Regular Session , fi mM

*

Uig
REGULAR MEETING AGENDA da yperned 4:04 0

COMMITTEE ON COMMERCE

DATE Tuesday, January 26, 2021 ROOM HHR3 TIME 2:00 P.M.

This meeting will be held via teleconference software. Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID=6361 162879&eventID=202 1011129

Members:
Mr. Chaplik Mr, Meza Mr. Wilmeth
Mr. Cook Ms. Nutt Mr, Kaiser, Vice-Chairman
Mr. Espinoza Ms. Powers Hannley Mr. Weninger, Chairman
Mrs. Fernandez
Bills Short Title Strike Everything Title
HB2118 D 4 furnishing tobacco; minors; enterprise penalties
(Bolick)

4. ).{-@ COM, RULES

HB2119 D ? health care insurance; amendments

(Bolick)
}0-0-0-0 COM, RULES
*HB2120 r y timeshares; public reports; purchase contracts
(Bolick)
/o Lp-b-8 COM, RULES
*HB2160 rp) P occupational safety; advisory committee;
enforcement

Kaiser
Ge je 0- © (Kaiser)
——— COM, RULES

*HB2161 D p tourism marketing authorities.
(Kaiser: Blackman, Cobb, et al)

d-Avrl- 0 COM, RULES

Page 1 of 2
Bills Short Title Strike Everything Title

HB2172 Dd fv wireless providers; authority; applicability
(Dunn: Osborne, Kerr)

/0 -0-0 ~ 2 COM, RULES

HB2243 D fo occupational and professional licensure; notice
(Grantham)
q. j-0-0 COM, RULES

HB2267 D p professional licensure fees; waiver; reduction
————— (Grantham)
10-0-0-0 COM, RULES

HCR2014 D Pp United States; Taiwan; partnership.
(Kavanagh)
g- 2 -O- 7 COM, RULES

* On previous agenda
ORDER OF BILLS TO BE SET BY THE CHAIRMAN
Any person desiring to be heard in-person in committee concerning legislation shall email that request to the House committee

email address (HouseCOM@azleg.gov) at least 24 hours, excluding weekends and holidays, in advance of committee, if practicable.
The request to participate in-person shall be in addition to requesting to speak via the Request to Speak system.

DF
01/21/2021

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 2 of 2
Information Registered on the Request to Speak System

House Commerce (1/26/2027)

HB2118, furnishing tobacco; minors; enterprise penalties

Testified in support:

Doug Lau, representing self

Testified as neutral:
Kyle Sawyer, AZ HEALTH CARE COST CONTAINMENT SYSTEM

Testified as opposed:
Mike Williams, CIRCLE K; Mark Miller, representing self

Support:
Edith Lefevre, AZ ATTORNEY GENERAL'S OFFICE; Dr. Ryan A. Starzyk, representing self

Neutral:

Brian Hummell, American Cancer Society Cancer Action Network; Don Isaacson, RAI SERVICES COMPANY; Steve
Barclay, CIGAR ASSOCIATION OF AMERICA; JoAnna Strother, AMERICAN LUNG ASSOCIATION IN ARIZONA; Nicole
Olmstead, American Heart Association

Oppose:
Gibson McKay, Representing The Vapor Technology Association; Amanda Gray, Arizona Petroleum Marketers
Association; Amanda Wheeler, representing self

All Comments:

Doug Lau, Self: On behalf of the Arizona Attorney General's Office.; Gibson McKay, Representing The Vapor
Technology Association: Represent: AZ Smokefree Business Alliance, American Vapor Manufacturers,; Brian
Hummell, American Cancer Society Cancer Action Network: Commend the sponsor for this bill. Increasing penalties
on retailers who sell tobacco to kids and conforming with Feds on sales age are important. However, additional
resources are needed to do more compliance checks and adequately track retailers.; Don Isaacson, RAI SERVICES
COMPANY: Changing our position to neutral. No need to testify.; Steve Barclay, CIGAR ASSOCIATION OF AMERICA:
CAA does not and has never supported selling tobacco to minors; their cigars and pipe tobacco are for adults only.
Bigger fines for multiple offenses by retailers may help. Responsible retailers should have no cause for concern -
obey the T-21 laws.

HB2119, health care insurance; amendments

Support:
Elizabeth Hatch, CVS HEALTH; Chuck Bassett, Blue Cross Blue Shield Of AZ

Attachment

4
Neutral:
Stephen Briggs, AZ DEPT OF INSURANCE AND FINANCIAL INSTITUTIONS

HB2120, timeshares; public reports; purchase contracts

Support:
Louis Dettorre, Legislative Liaison, Arizona Department of Real Estate, AZ DEPT OF REAL ESTATE; Dr. Ryan A.

Starzyk, representing self

HB2160, occupational safety; advisory committee; enforcement

Support:
Brian Tassinari, ARIZONA MASONRY COUNCIL; Steve Trussell, AZ ROCK PRODUCTS ASSN; Courtney Coolidge, AZ
CHAMBER OF COMMERCE; Trevor Laky, INDUSTRIAL COMMISSION OF AZ

Oppose:

Ryan Kelly, representing self

All Comments:
Ryan Kelly, Self: Easing citation violation standards on employers in the midst of COVID-19 is an absolutely absurd
idea, that goes against sound public health logic. This will put at-risk workers even further in harms way.

HB2161, tourism marketing authorities.

Support:

Barry Aarons, VISIT MESA, VISIT PHOENIX, VISIT TUCSON; Kim Sabow, Arizona Lodging & Tourism Association;
Laura Magnus, EXPERIENCE SCOTTSDALE; Kevin DeMenna, ARIZONA DUDE RANCH ASSOCIATION; Brian Tassinari,
LAKE HAVASU CITY; James Hamilton, Phoenix Raceway/ NASCAR; Jaime Molera, ARIZONA LODGING AND TOURISM
ASSOCIATION; Joe DeMenna, ARIZONA DUDE RANCH ASSOCIATION; Glenn Hamer, Arizona Chamber Of Commerce
And Industry; Steve Barclay, BEER & WINE DISTRIBUTORS OF ARIZONA; Mike Huckins, GREATER PHOENIX
CHAMBER OF COMMERCE; Jessie Armendt, Republic National Distributing Company Of Arizona; Lourdes Pefia,
TUCSON AIRPORT AUTHORITY; Dawn Schumann, TEAMSTERS LOCAL UNION 104; Courtney Coolidge, AZ CHAMBER
OF COMMERCE; Stuart Graff, representing self; John Holdsworth, representing self; Andrew Chippindall,
representing self; Gerd Wuestemann, representing self; Dena Roady, representing self; Linda Dillenbeck,
representing self; Dr. Ryan A. Starzyk, representing self

Oppose:
Aimee Yentes, representing self; Jenise Porter, representing self; Nancy C. Faria, representing self; Ben Beckhart,
REPUBLICAN LIBERTY CAUCUS OF ARIZONA; Leah Martineau, representing self; Stephanie Bader, representing self

All Comments:
Lourdes Pefia, TUCSON AIRPORT AUTHORITY: TAA is in strong support of HB2161, this is a great tool to support the
tourism industry.; Dawn Schumann, TEAMSTERS LOCAL UNION 104: Lam in agreement of this bill to bring monies
into communities that can open up for more tourism , especially the film industry return. Monies should be
allocated to small businesses as well. This is a good bill.; Aimee Yentes, Self: This delegates taxing authority to
private industry.; Ben Beckhart, REPUBLICAN LIBERTY CAUCUS OF ARIZONA: This bill grows government
bureaucracy and allows for new tax increases on hotels. We believe this is not the proper role of government and
this should be left up to the private sector. We respectfully oppose HB2161 and ask for a No vote.

HB2172, wireless providers: authority; applicability

Support:
Rodney Short, Self, YUMA, CITY OF

All Comments:

Rodney Short, Self, YUMA, CITY OF: City of Yuma supports. The exclusion for border communities has been
swallowed by new FCC regs. The exemption may undermine the national objective of deployment of new
technologies. New fed regs should take national security objectives into account.

HB2243, occupational and professional licensure; notice

Support:
Jenna Bentley, BARRY GOLDWATER INSTITUTE FOR PUBLIC POLICY RESEARCH; Chuck Fitzgerald, representing self

HB2267, professional licensure fees; waiver; reduction

Support:
Jenna Bentley, BARRY GOLDWATER INSTITUTE FOR PUBLIC POLICY RESEARCH; Aimee Yentes, representing self

Ail Comments:
Aimee Yentes, Self: Great bill - we should not let regulatory boards stockpile monies they have assessed from
licensees.

HCR2014, United States; Taiwan; partnership.

Support:
Caroline Anderson, representing self; Chuck Fitzgerald, representing self; Courtney Coolidge, AZ CHAMBER OF

COMMERCE

Oppose:

Jane Adrian, representing self; Robert Stansfield, representing self; Marvin Mccollum, representing self; Suzanne
Mead, representing self; Nancy Branham, representing self; William Yohey, representing self; Don Howard,
representing self; J Nicholas Prestera, representing self; John Sandoz, representing self; William Bowlus-Root,
representing self; Ann Johnson, representing self; Dr. Ryan A. Starzyk, representing self
All Comments:
Ann Johnson, Seif: Stop Dark Money
ARIZONA STATE LEGISLATURE

Fifty-fifth Legislature - First Regular Session.

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Jeff Weninger VICE-CHAIRMAN: _ Steve Kaiser
DATE t/7 412A) 1/226 121 (24 [24 21
CONVENED aig Spit a'Pom m m m
RECESSED
RECONVENED
ADJOURNED 4-2-1 Pn 040
MEMBERS
Chaplik y Sf
Cook Vie Y
Espinoza Y /
Fernandez v vA
Meza Vv /
Nutt / | ¥
Powers Hannley 4 /
Wilmeth "4 J
Kaiser, Vice-Chairman VA Y
Weninger, Chairman / /
| Present -- Absent exc Excused

Attachment a
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

A

HB 2118: furnishing tobacco; minors; enterprise penaities
Sponsor: Representative Bolick, LD 20
Committee on Commerce

Overview
Prescribes penalties and restrictions for enterprises that violate law relating to furnishing of

tobacco and vapor products.

History
A person who knowingly sells, gives or furnishes cigars, cigarettes or cigarette papers or smoking

and chewing tobacco (tobacco products), a vapor product or any instrument or paraphernalia that
is specifically designed for the smoking or ingestion of tobacco or shisha, including hookah or
waterpipe, to a minor is guilty of a petty offense.

A minor who buys or possesses or knowingly accepts or receives tobacco product, vapor product
or any instrument or paraphernalia that is specifically designed for the smoking or ingestion of
tobacco or shisha, including hookah or waterpipe, is guilty of a petty offense (A.R.S. § 13-3622).

Statute defines a minor as a person under 18 years of age (A.R.S. § 1-215).

Statute defines “Shisha” as any mixture of tobacco leaf and honey, molasses or dried fruit or any
other sweetener. "Vapor product" means a noncombustible tobacco-derived product containing
nicotine that employs a mechanical heating element, battery or circuit, regardless of shape or
size, that can be used to heat a liquid nicotine solution contained in cartridges. Vapor product
does not include any product that is regulated by the United States Food and Drug Administration
(A.R.S. § 13-3622)

In 2019, The Federal Food, Drug, and Cosmetic Act was amended by legislation which
established that it is unlawful for any retailer to sell tobacco products to any person younger than
21 years of age.

Provisions
Furnishing of Tobacco Products (Sec. 1)

1. Replaces minor with a person who is under the minimum age of sale for tobacco products as
set by the Federal Food, Drug, and Cosmetic Act.

2, Establishes penalties and restrictions for enterprises that violate law relating to furnishing of

tobacco and vapor products within a 3-year period as follows:

a) First Violation: Mandatory tobacco retailer educational course in lieu of or in addition to a
$500 to $750 fine;

b) Second Violation: Mandatory tobacco retailer educational course; $1,000 to $1,500 fine;
30-day prohibition of tobacco related transactions;

c) Third Violation: Mandatory tobacco retailer educational course; $2,000 to $2,500 fine; 90-
day prohibition of tobacco related transactions;

d) Fourth or subsequent Violation: Mandatory tobacco retailer educational course; $3,000 to
$5,000 fine; 1-year prohibition of tobacco related transactions.

HB 2118
Initials _ Pagel Commerce

Attachment Lf
3. Stipulates an enterprise that violates a prohibition of tobacco related transactions is guilty of
a petty offense and is required to pay an additional fine of $3,000 to $5,000 and will be subject
to an extension of the prohibition period of tobacco related transactions.

4. Prohibits the court from waiving fines for a second or subsequent violation outside of the 3-
year period.

5. Requires at least one owner or person serving in a managerial position and one person ina
nonmanagerial position to attend the mandatory tobacco retailer educational course.

6. Makes technical changes.

HB 2118
Initials Page 2 Commerce
Fifty-fifth Legislature Commerce
First Regular Session H.B. 2118

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2118
(Reference to printed bill)

Page 2, after line 44, insert:
“T. THE PENALTY ON AN ENTERPRISE THAT HAS MORE THAN ONE LOCATION

PURSUANT TO SUBSECTION E, F, G OR H OF THIS SECTION APPLIES ONLY TO THE
SPECIFIC LOCATION IN WHICH THE VIOLATION OCCURRED.”
Reletter to canform

Amend title to conform

JEFF WENINGER

2118WENINGER
01/22/2021
02:22 PM

H; PRB/1s

Attachment 3

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO, —_HB 2118
DATE January 26, 2021 motion: DPA
PASS AYE NAY PRESENT | ABSENT

Chaplik Y

Cook Wf VA

Espinoza A /

Fernandez /

Meza va

Nutt V4

Powers Hannley Y

Wilmeth VO

Kaiser, Vice-Chairman /

Weninger, Chairman /

q 0 / y)

win WENINGER, Chairman

STEVE KAISER, Vice-Chairman

ATTACHMENT

COMMITTEE SECRETARY

Z

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

a

HB 2119: health care insurance; amendments
Sponsor: Representative Bolick, LD 20
Committee on Commerce

Overview
Makes various changes to statute governing Health Care Insurers.

History
Hospital, medical, dental and optometric service corporations (Service Corporations) is defined

as corporations organized under the laws of this state for the purpose of establishing, maintaining
and operating nonprofit hospital service or medical or dental or optometric service plans, or a
combination of such plans, whereby hospital, medical or dental or optometric service may be
provided by hospitals, physicians, podiatrists, dentists or optometrists with which the corporations
have contracted for such purpose (A.R.S. § 20-822).

Health care services organization (HCSO) means any person that undertakes to conduct one or
more health care plans. Unless the context otherwise requires, health care services organization
includes a provider sponsored health care services organization (A.R.S. § 20-1051).

Utilization review means a system for reviewing the appropriate and efficient allocation of inpatient
hospital resources, inpatient medical services and outpatient surgery services that are being given
or are proposed to be given to a patient, and of any medical, surgical and health care services or
claims for services that may be covered by a health care insurer depending on determinable
contingencies, including without limitation outpatient services, in-office consultations with medical
specialists, specialized diagnostic testing, mental health services, emergency care and inpatient
and outpatient hospital services (A.R.S. § 20-2501).

Provisions

Service Organizations
1. Applies statute relating to assignment of benefits to a hospital and medical service
corporation. (Sec. 3)

2. Applies laws governing insurance company holding systems to Service Corporations. (Sec.
4)

3. Allows a corporation to pay any agent or employee any salary, compensation or emolument
without preauthorization from the board of directors of the corporation. (Sec. 6)

Health Care Services Organizations

4. Requires an HCSO to submit quarterly, rather than monthly, to the Department of Insurance
and Financial Institutions, a list of all provider contracts that have been terminated during the
previous three months, rather than the previous month. (Sec. 8)

Accountable Health Plans

5. Expands the definition of COBRA continuation provision to include statute relating to small
group health plan continuation coverage. (Sec. 9)

HB 2119
Initials Page 1 Commerce

Attachment_’7 ~

\

|
10.

11.
12.

13.

Excludes a policy or contract made available to persons eligible for AHCCCS from the
definition of creditable coverage. (Sec. 9)

Excludes a small employer who obtains a health benefits plan that is subject to and complies
with federal from statute governing accountable health care plan premium rate practices.
(Sec, 10)

Repeals laws relating to basic health benefit plans and exchange of information by electronic
means. (Sec. 11)

Utilization Review

Exempts a person from specified laws relating to certification requirements provided certain
criteria are met. (Sec. 12)

Allows a provider or enrollee to appeal a denial of a formulary exception for a plan covered by
federal law through the process prescribed in federal rule. (Sec. 13)

Miscellaneous
Repeais laws relating to contracts and forms in effect prior to January 1, 1955. (Sec. 1)

Clarifies statute relating to prohibitive actions of a person applies to Service Corporations and
HCSOs. (Sec. 2)

Makes a conforming change. (Sec. 5, 7, 9, 14)

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

HB 2119

Initials Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. HB 2119
DATE January 26, 2021 MOTION: D (
PASS AYE NAY PRESENT | ABSENT
Chaplik J
Cook S
Espinoza /
Fernandez VA
Meza 4
Nutt WA
Powers Hannley JS
Wilmeth v4
Kaiser, Vice-Chairman vA
Weninger, Chairman /
/d ”) 0 2
APPROVED: COMMITTEE SECRETARY

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT_&”
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

—

HB 2120: timeshares; public reports; purchase contracts
Sponsor: Representative Bolick, LD 20
Committee on Commerce

Overview
Updates statutory references regarding the timeframe for canceling a timeshare to reflect 10 days
rather than 7 days.

History

Pursuant to A.R.S. § 32-2197.03, a purchaser of a timeshare may rescind the purchase
agreement without any cause by sending a written notice of rescission to the developer within 10
calendar days after the date the purchaser signs the agreement, unless the agreement discloses
a longer period of time.

The Real Estate Commissioner must approve a public report authorizing the sale or lease of the
timeshare interests within the timeshare plan. The public report must include a statement
regarding rescission rights of the purchaser. Currently, the statement's language references 7
calendar days for cancelation (A.R.S. § 32-2197.08).

Provisions
4. Conforms certain statutory references regarding the timeframe for canceling a timeshare
purchase agreement to reflect the statutorily allowed amount of time of 10 days. (Sec. 1, 2)

2. Requires the prescribed statement on the timeshare reservation form relating to the
prohibition on offering to sell or purchase a timeshare interest before issuance of a public
report to be above the purchaser's signature. (Sec. 2)

3. Makes technical changes. (Sec. 1, 2)

HB 2120
Initials Page 1 Commerce .
Attachment
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __HB2120_

DATE January 26, 2021 MOTION: pe
PASS AYE NAY PRESENT | ABSENT

Chaplik Sf

Cook A

Espinoza Y

Fernandez WA

Meza 4

Nutt vA

Powers Hannley 4

Wilmeth /

Kaiser, Vice-Chairman WA

Weninger, Chairman WA

/ a 0 0 og

APPROVED: COMMITTEE SECRETARY

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT__72
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

_  _

HB 2160: occupational safety; advisory committee; enforcement
Sponsor: Representative Kaiser, LD 15
Committee on Commerce

Overview
Allows the Director of the Division of the Occupational Safety and Health (Director) to excuse a
late notification regarding a citation contestation for safety and health standards and regulation

violations.

History
The Industrial Commission of Arizona Division of Occupational Safety and Health is responsible

for formulating safety and health standards and rules by either: 1) proposing adoption of national
consensus standards or federal standards; or 2) draft such rules as it considers necessary and
through consultation with the Occupational Safety and Health Advisory Committee (A.R.S. § 23-
410).

Employers must comply with occupational safety and health standards and all regulations.
Employers who are found in noncompliance, after an inspection and investigation by the Director,
are issued a citation. After receiving a notification of a citation, the employer has 15 days to notify
the Director of the desire to contest the citation. Failure to notify the Direction on contesting within
the 15 day period results in the citation being final and not subject to review (A.R.S., Title 23,
Article 10)

Provisions

1. Removes the requirement for the Occupational Safety and Health Advisory Committee to
recommend names to the governor for consideration as members of the Review Board. (Sec.

1)

2. Permits the Director to excuse any late notification to contest a citation provided the employer
to whom the notice was sent shows by clear and convincing evidence that the notice was not
received. (Sec. 2)

3. Contains a conditional enactment clause. (Sec. 4, 5)

C4) Prop 105 (45 votes) C1 Prop 108 (40 votes) © Emergency (40 votes) (Fiscal Note

HB 2160
Initials PRB Page 1 Commerce

Attachinent pf

\

|

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __HB 2160
DATE January 26, 2021 MOTION: 1
PASS AYE NAY PRESENT | ABSENT
Chaplik S
Cook WA
Espinoza vA
Fernandez SY
Meza vA
Nutt WA
Powers Hannley V
Wilmeth /
Kaiser, Vice-Chairman WA
Weninger, Chairman WA
q |! 0 YZ,
APPROVED: ~ COMMITTEE SECRETARY

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT_ “2

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

a

HB 2161: tourism marketing authorities.
Sponsor: Representative Kaiser, LD 15
Committee on Commerce

Overview
Allows for the formation of a tourism marketing authority (Authority).

History

The Arizona Office of Tourism (AOT) is responsible for promoting and developing tourism in
Arizona. AOT is led by a director, appointed by the governor, along with an assistant director
chosen by the director with the governor's approval. The director must have at least five years of
management experience in the tourism and travel industry, understanding of the technical
elements of the tourism industry, and experience in marketing or public relations. The director is
responsible for promoting and developing tourism business, conducting a marketing campaign on
the attractions of the state, and promoting this information through state, national and international
media (A.R.S., Title 41, Chapter 19).

Provisions

Formation of the Authority (Sec. 1)

1. Enables, by a petition, the governing body of one or more municipalities or one or more
municipalities and a county with a population of less than two million persons to adopt a
resolution forming a tourism marketing authority.

a. Specifies the contents of the petition.

2. Stipulates the governing body of each participating municipality and county by affirmative vote
may approve the formation of the Authority if a petition is signed by the owners of at least 67%
of the transient lodging rooms within the Authority which includes two or more properties with
transient lodging rooms.

Powers and Duties

3. Requires the governing body of each municipality and county participating in the Authority to
contract with a recognized nonprofit (501 (c)(6)) tourism promotion agency.
a. Stipulates if there is no recognized agency, the municipality may contract with the
municipality's tourism promotion office.
b. Requires the municipality and any participating county, through the contract, to distribute
all monies received from assessments to the recognized tourism promotion agency.

Tax Assessment

4. Directs the Authority to charge and collect assessments on transient lodging rooms and allows
the Authority to levy an assessment of not more than $5 dollars per room sold per night on
the transient lodging rooms in the Authority.

{1 Prop 105 (45 votes) C1 Prop 108 (40 votes) Emergency (40 votes) Li Fiscal Note

HB 2161
initials Page 1 Commerce

Attachment /.2.
10.

11.

12.

13.

14.

15.
16.

17.
18.
19.

20.

a. Specifies the assessment rate may be tiered based on the average daily room rate for the
affected transient lodging.

Requires the transient lodging room owner to pay the assessment to the Arizona Department
of Revenue (ADOR) at the same time as paying the transaction privilege tax.
a. Specifies the assessment is delinquent and payable to ADOR if not paid.

Directs ADOR to report the amount of monies collected from the assessment to the State
Treasurer.

Requires the State Treasurer to transmit to the participating municipality or county treasurer's
the amount collected from properties within the Authority.
a. Defines the municipal location of a property in the Authority.

Directs ADOR to separately account for the monies paid and deposit the net revenues
collected into the state General Fund.

Requires the Board and any participating municipality or county to supply ADOR and the State
Treasurer with all requested information necessary relating to the administration of the
assessment.

Authority Governance

Requires an Authority be governed by the board of directors of the recognized tourism
promotion agency and at least one member of one or more of the governing bodies must
participate in the Authority.

Permits the Authority to:

a. Employ staff and consultants;

b. Reimburse a municipality or county for staff, services and facilities;
c. Enter into contracts; and

d. Accept Grants.

Prohibits the Authority from financing or facilitating the acquisition, maintenance, construction
or operation of a hotel, motel, resort or other transient lodging or any sports or entertainment
facility.

Requires the Authority and its Board to maintain the records of the Authority.

Directs the Authority and its Board to keep monies and operations separate from the tourism
promotion agency's other monies and activities.

Requires the Board to comply with public meetings and public records laws.

Requires the Board to report, at least annually, to the governing bodies on activities and
expenditures and the impacts of the expenditures and activities.

Termination
Outlines the criteria and process for termination of the Authority.
Terminates the Authority 10 years after formation unless renewed.

Provides criteria for renewing an Authority and modifying its boundaries.
a. Allows for an additional 10-year renewal.

Miscellaneous

Defines the following terms: authority, board, governing body, municipality and transient
lodging rooms.

HB 2161

initials Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. HB 2161
DATE January 26, 2021 MOTION: D i
PASS AYE NAY PRESENT | ABSENT
Chaplik WA
Cook SS SJ
Espinoza Ve S
Fernandez Wi,
Meza /
Nutt WA
Powers Hannley /
Wilmeth /
Kaiser, Vice-Chairman vA
Weninger, Chairman / .
q A / Y
APPROVED: COMMITTEE SECRETARY

AS

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT _/ 4%
Arizona Senate Bill 1101 & House Bill 2161 - 2021 Legislative Session
Tourism Marketing Authorities

There are over 187 jurisdictions across the United States that have created tourism marketing
authorities (TMAs). These authorities are formed through a public-private partnership between the
local government and the hoteliers in the district that will be paying the assessment.

How does the Tourism Marketing Authority (TMA) work?

Through an assessment on sold hotel and resort guest rooms, hoteliers would remit revenue to the
Arizona Department of Revenue, which would allocate it to the applicable municipalities and/or
counties. Then, the revenue would be passed through to TMAs. Destination Marketing Organizations
(DMOs), in jurisdictions with TMAs would use the money for new sales, marketing and promotional
projects that augment their existing programs of work.

Why are Destination Marketing Organizations pursuing TMAs?

A major advantage of a TMA is that it increases the amount of funding available for tourism-related
programs. Local tourism agencies want to bring more meetings and leisure travel to participating
hotels and resorts by generating additional money for sales, marketing, promotion, events or new
airline routes.

Given the impact of COVID-19 on the Tourism Industry, TMAs will provide a much-needed revenue
source to allow the industry to recover when mass travel and large-scale events resume.

e Recover travel-related jobs lost during e Hoteliers vote on this assessment and
COVID-19. have input on how the dollars are invested.
¢ More visitor dollars to participating e¢ Accountability—Destination Marketing
communities. Organization boards oversee TMAs and
provide performance reports to
¢ More state, county and municipal tax participating local/county governments.

revenue from visitors.
e This is enabling legislation. DMOs have to

e More visitor revenue to pay for public come together with area hoteliers and
education, public safety and health care. local/county governments through a
petition process to proceed. Communities
e New visitor marketing, sales and that do not want to create a TMA are not ~
promotion tailored to the needs of compelled to do so.

participating communities.

Attachment ma

Arizona Senate Bill 1101 & House Bill 2161 - 2021 Legislative Session

Tourism Marketing Authorities
Updated: January 26, 2021

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ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

ee

HB 2172: wireless providers; authority; applicability
Sponsor: Representative Dunn, LD 13
Committee on Commerce

Overview
Removes the exemption for qualifying Authorities from laws governing wireless providers use of

right-of-way.

History
Laws 2017. Chapter 124 established regulations for wireless providers for the use of a right-of-

way to construct, install, maintain or replace utility poles or monopoles or the collocation of a small
wireless facility. The law prohibits an Authority from entering into an exclusive arrangement with
a wireless provider for the construction, installation, maintenance or replacement of a utility poles
or monopoles or their collocation. Any Authority located within 10 miles of the border of Mexico
that is negotiating or has a contract in place by July 1, 2018 and that contract assists and supports
national security objectives along the border is exempt from laws governing wireless providers
use of a right-of-way (A.R.S. § 9-591 et al.).

A.R.S. § 9-591 defines an Authority as any city, town, special district or political subdivision of this
state that is authorized to make legislative, quasi-judicial or administrative decisions concerning
an application.

Provisions

1. Removes the exemption for any Authority located within 10 miles of the border of Mexico, who
was negotiating or in contract by July 1, 2018 that assists and supports national security
objectives, from laws governing wireless providers use of right-of-way. (Sec. 1)

C) Prop 105 (45 votes) CO Prop 108 (40 votes) © Emergency (40 votes) 2 Fiscal Note

HB 2172
Initials Page 1 Commerce

Attachment Mo |

}
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILLNO. __HB 2172
DATE January 26, 2021 motion: D/
PASS AYE NAY PRESENT | ABSENT
Chaplik /
Cook /
Espinoza JS
Fernandez J
Meza /
Nutt VA
Powers Hannley Y
Wilmeth /
Kaiser, Vice-Chairman WA
Weninger, Chairman J
pO ZY 0 0
APPROVED: COMMITTEE SECRETARY

RA
}

JEFF WENINGER, Chainian
STEVE KAISER, Vice-Chairman

ATTACHMENT__/ 7

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session

a

HB 2243: occupational and professional licensure; notice
Sponsor: Representative Grantham, LD 12
Committee on Commerce

Overview
Directs a licensing and certifying regulating entity to print a specified notice on all license and

certificate applications and regulating entity websites.

History
Pursuant to A.R.S. § 32-4302, an individual, who has an out-of-state occupational or professional

license or certificate, who establishes residency in this state and who applies for a license or
certificate in the same discipline and at the same practice level as determined by the regulating
entity shall be issued that occupational or professional license or certificate provided specified

qualifications are met.

To qualify for licensure or certification, the individual must meet outlined requirements including
that the person: 1) has been licensed or certified for at least one year in another state and is in
good standing in all states the person holds a license; 2) met minimum education requirements
and, if applicable, work experience and clinical supervision requirements of the other state in
which the person was licensed or certified; 3) passed any required examination for licensure or
certification in the other state; 4) has not had a license or certificate revoked or voluntarily
suspended while under investigation for unprofessional conduct or had disciplinary action
imposed by a regulating entity; 5) does not have a pending complaint, allegation or investigation
that relates to unprofessional conduct; 6) does not have a disqualifying criminal history as
determined by the regulating entity; and 7) pays required fees.

The regulating entity that administers an examination on the laws of this state may require an
applicant to take and pass an exam.

Provisions
4. Requires an occupational or professional regulating entity to prominently print on all license
and certificate applications and regulating entity websites the following statement:

Pursuant to section 32-4302, Arizona Revised Statutes, a person shall be granted an
occupational or professional license or certificate if the person has been licensed or certified
in another state for at least twelve months, the license or certificate is in the same discipline
and at the same practice level as the license or certificate for which the person is applying in
this state and the person meets other conditions prescribed by section 32-4302, Arizona
Revised Statutes.

C1 Prop 105 (45 votes) © Prop 108 (40 votes) 0 Emergency (40 votes) Oi Fiscal Note

HB 2243
initials Page 1 Commerce

Attachment Lg |
|
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. HB 2243
DATE January 26, 2021 MOTION: D e

PASS AYE NAY PRESENT | ABSENT
Chaplik /
Cook J
Espinoza vA
Fernandez Y
Meza WA
Nutt Y
Powers Hannley A
Wilmeth J
Kaiser, Vice-Chairman V4
Weninger, Chairman /

G / 0 O
COMMITTEE SECRETARY

ey A

JEFF WENINGER” Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT_/ q

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

Ln

HB 2267: professional licensure fees; waiver; reduction
Sponsor: Representative Grantham, LD 12
Committee on Commerce

Overview
Requires a regulatory board or agency (regulatory entity) to reduce or waive fees when its
licensing fund exceeds 50% of the appropriations from the same year.

History
To practice or perform a regulated occupation or profession or use certain occupational or

professional titles in Arizona, a person must meet certain qualifications and apply to the
designated board or agency for the license, certificate or authorization. The initial application and
renewal processes, including initial and renewal licensing certification fees, vary across the
professions and occupations (A.R.S., Title 32).

Provisions

1. Requires, by September 1 of each year, a regulatory entity to determine whether the entity
expects its licensing fund ending balance to exceed 50% of the current FY appropriation from
that fund by reviewing:
a) Incurred costs;
b) Monies in its funds; and
c) Collected fee revenues. (Sec. 2)

2. Stipulate a regulatory entity that determines its licensing fund balance would exceed 50% of
its current FY licensing fund appropriation must provide a one-time licensure or certification
renewal fees waiver or reduction to reduce the licensing fund balance to below 50% of its
licensing fund appropriation:

a) In the upcoming FY; or
b) Within the normal schedule for license or certification renewal, if longer than one year.
(Sec. 2)

3. Directs a regulatory entity, in determining the amount of the waiver or reduction, to attempt to
ensure that all existing licensees or certificate holders receive one waiver or reduction.
a) Specifies fees for new licensees or certificate holders to be waived or reduced for the

subsequent FY.
b) Requires a regulatory entity to attempt to ensure that fee reductions are the same for initial

and renewal licenses and certificates. (Sec. 2)

4. Allows a regulatory entity to temporarily reduce or waive any initial or renewal licensure or
certification fees. (Sec. 2)

5, Requires a regulatory entity to annually report fee plans to the Governor, President of the
Senate and Speaker of the House of Representatives by September 1.

a) Requires the annual report to include at a minimum: 1) the amount of revenues and

expenditures expected in the current FY, 2) projected ending balances for the licensing

HB 2267
initials Page 1 Commerce

Attachment 27

1
fund, and 3) reasoning and justification for how the waiver or reduction plan will achieve
required fee reductions. (Sec. 2)

6. Requires a regulatory entity, by July 4 of the FY in which the reduction or waiver becomes
effective, to:
a) notify existing licensees or certificate holders of the intended reduction or waiver; and
b) prominently announce the fee reduction or waiver for new and existing licensees or
certificate holders on its website homepage. (Sec. 2)

7. Allows a regulatory entity that believes it will require onetime monies greater than 50% of its
annual appropriation for onetime capital, information technology or similar costs to include a
report of this expected need in its statutorily required budget estimates submission to the
Governor. (Sec. 2)

8. Delineates applicatory regulatory entities. (Sec. 2)
9. Makes a technical change. (Sec. 1)

C1 Prop 105 (45 votes) 1 Prop 108 (40 votes) 1 Emergency (40 votes) (1 Fiscal Note

HB 2267
Initials _ Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. HB 2267
DATE January 26, 2021 MOTION: J ) e
PASS AYE NAY PRESENT | ABSENT
Chaplik VA
Cook WA
Espinoza WA
Fernandez WA
Meza Wy
Nutt W/,
Powers Hannley WA
Wilmeth J
Kaiser, Vice-Chairman J
Weninger, Chairman /
[2 0 0 0

APPROVED: COMMITTEE SECRETARY

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT_<< {

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

EE

HCR2014: United States; Taiwan; partnership.
Sponsor: Representative Kavanagh, LD 23
Committee on Commerce

Overview
Expresses support for a U.S.-Taiwan partnership.

History
in 2018, Congress expressed the sense that the U.S. government should encourage visits

between U.S. and Taiwanese officials at all level. Federal law states that it should be U.S. policy
to: 1) allow U.S. officials at all levels to travel to Taiwan to meet their Taiwanese counterparts; 2)
permit high-level Taiwanese officials to enter the U.S. under respectful conditions; and 3)
encourage the Taipei Economic and Cultural Representative Office and any other instrumentality
established by Taiwan to conduct business in the U.S.

Provisions
1. Expresses the Legislature's support for:
a) The negotiation of the U.S.-Taiwan Bilateral Trade Agreement and for Taiwan's
meaningful participation in international organizations.
b) A future official visit, at his discretion, to Taiwan by the Governor.

2. Proclaims the Legislature's acknowledgement of the achievements made by Arizona and
Taiwan in the fields of economy, trade, technology, education and culture since the
establishment of their sister-state relations on July 28, 1980 and encourage continued bilateral
cooperation and exchanges.

HCR 2014
Initials Page 1 Commerce

Aitachment-Z Z 7
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. _ HCR 2014

DATE January 26, 2021 MOTION: __.[D P

PASS AYE. NAY PRESENT | ABSENT

Chaplik Y

Cook WA

Espinoza /

Fernandez WA

Meza J

Nutt J

Powers Hannley 4

Wilmeth V4

Kaiser, Vice-Chairman /

Weninger, Chairman /

4 de 0 0

APPROVED: COMMITTEE SECRETARY

0 re

6a
JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT.

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